AMENDMENTS TO THE EXPORT ADMINISTRATION ACT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01495R000200060006-1
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: December 19, 2016
• Document Release Date: August 23, 2005
• Sequence Number: 6
• Publication Date: September 18, 1972
• Content Type: MF

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18 September 1972
MEMORANDUM FOR: Deputy Director for Intelligence
REFERENCE CIEP Memo to D/OER dated 1 September 1972
SUBJECT Amendments to the Export Administration
Act
1. As you may know the Export Administration Act
of 1969 was recently amended. This Act provides the legal
basis for controlling US exports to Communist destinations.
The Export Administration Act -- which replaced the Export
Control Act of 1949 -- reflected Congressional and Admin-
istration desires that controls be reduced on products
and technical data consonant with US security interests.
Since the passage of the Act at the end of 1969, ACEP and
the Department of Commerce have made rapid strides in
relaxing US controls and in simplifying licensing procedures
for US exporters.
2. The decontrol process will be speeded up by the
amendments recently passed. The amendments are referred
to as the "equal Export Opportunity Act." The Act is
aptly named because it is designed more to encourage exports
than to control them. It specificall directs that US
export restrictions be reviewed with the aim of bringing
them into line with the less stringent,.multilateral COCOM
controls. The review process, moreover, is to concentrate
first on those items which have "significant potential
export markets." In addition, the review process not only
is to be undertaken by appropriate government agencies
but also by "qualified experts from private industry;"
i.e., people who have a vested interest in relaxing US
controls. By 1 April 197 the Secretar ofTaCommerce must
ongress. report listing
submit to the President and
ata whpse , g=i _are__T geate '
commodities andtechnical. d .nt
than COCOM'sand the reason why they are still., contxol1ed=
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3. The new Act will lead to an eventual reduction in
trade control activities not only in the Department of
,#Qmmerce but in all ACEP agencies including.CIA. Over the
next few months, however, the pace of decontrol activities
will accelerate to meet the 9-month deadline imposed by
the Act. This will put an additional burden on all ACEP
agencies including CIA. Moreover, with business interests
involved in the decontrol process, government agencies
will be pressed to come up with cogent reasons for wanting
to continue controls on various items.
MAURICE C. ERNST
Director
Economic Research
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September 1, 1972
MEMORANDUM FOR: MAURICE ERNST
Director, Economic Research
Central Intelligence Agency
Amendments to the Export
Administration Act Including the
Establishment of the Council on
International Economic Policy
Attached are two copies of amendments to the Export Adminis-
tration Act of 1969 including the "International Economic Policy
Act of 1972" establishing the Council on International Economic
Policy. The Act requires a comprehensive International
Economic Report to the Congress (Sec. 207) sixty days after
the beginning of each regular session of Congress including
recommendations for legislation as appropriate. The Act also
requires the CIEP to keep seven Congressional committees fully
and currently informed regarding the activities of the Council.
The Act provides for the assignment of Federal agency employees.
to CIEP on a reimbursable basis. I will keep
informed of any Congressional action on the appropriations cycle
for CLEF so he can plan OER financing accordingly.
I would appreciate your passing a copy to Paul Walsh, as he
has expressed interest in the past on the progress of CIEP legis-
lation.
Mr. Paul V. Walsh
A/DDI
Attachment
as stated (in dupl)
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 'bI AVU ' RM~jje sdn Z1 r6itirIC ~~ l RO ~t l~r~ Q6 y of January,
TO extend a`nd iuuentl the Export Adndnfstratiou .\ct of 11169 to iif?01-11 nwre
equal exhort Opportunity. to ettahiisii it ConnniI ou International 1"co n nine
Policy, and for other purlioS'S.
Be it enacted by the Senate and House of Pe/ne.entntives of the
f.'nited Mates of America. in ('oiugr?css o?ssemblcd,
TITLE I-AMENDMENTS TO THE EXPORT :1UMI\T-
IST1L-1 TIO1 ACT OF 1969
Sno.101. Th is title may be cited as the "Equal Export Opportunity
tniiended by adding at the end thereof the followin?:
) It is the policy of the United States that Ale desirability of
subjecting, or continuing to subject, particular articles, materials, or
supplies, including technical data or other information, to United
States export controls should be subjected to review by and consulta-
tion witli representatives of appropriate United States Government
agpncies and qualified experts front private industry. "
Sr:c. 104. (a) Section 4(b) of the Export Administration Act of
1969 is aiiiended-
(1 byinserting"(1)"lifter :(b)";and
( ) by adding at the end thereof the following new paragraphs:
"(2) The Secretary of Commerce, in cooperation with appro-
priate L: nited States Government departments and agencies and the
?? appropriate 'technical advisory committees established under section
5(c), shall undertake an investigation to determine which articles,
materials, and supplies, including technical data, and other informa-
tion, should no longer be subject to export controls because of their
significance 't.o the national security of the United Stantes. Notwith-
standing the provisions of paragraph (1), the President shall remove
:unilateral export. controls on the export from the United States of
articles, materials, or supplies, including technical data or other infor-
mation, which he determines are available without. restriction from
sources outside the United States in significant quantities and com-
parable in quality to those produced in the United. States, except that
any such control may retrain in effect if the President determines
Chat, adequate evidence, leas been presented to him demonstrating that.
the absence of such it control would prove detrimental to the national
security of the United States. The nature of such evidence shall be
included in the special report required by paragraph (4).
"(3) In conducting the investigation referred to in para;raph (2)
and in taking the attiou reclnirecl. under such paragraph, the Secretary
of Commerce s11a11 pile l>riorily to those controls which apply to
articles, materials. and supplies, including Icelmical data and other
information. for wt?ltic?lt there are significant, potc?wtial export markets.
"(4) hot. later than nine months after the. date of enactuiient of the
I?clual Export. Opportunity Ant, the Secretary of Conuucrce shall
subunit. to the I 'resiclrnt niut to the Cou~gress a special report. of actions
taken wider pau?agraphs (2) :uw.l (;). Such report. shall contain-
:_ Sr?.c. 103. Section 3 -of the Export. Administration Act_ of 1969 is
by the United States are more extensive than export restrictions
imposed by countries with which the United States has defense treaty
Sr-.c. 102. Section 2(3) of the Export Administration Act of 1969
is amended by inserting before the period at. the end thereof a conuna
rand the following: "particularly when export. restrictions applied
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S. 3726-2
(A) a list, of any articles, materials, and supplies, including
technical data and other information, which are subject. under this
Act to export controls greater than those imposed by nations with
which the United States has defense treaty commitments, and the
reasons for such greater controls; and _
in the United States which may be or are claimed to be more
burdensome than similar procedures utilized in nations with
which the United States has defense treaty commitments, and the
reasons for retaining such procedures in their present form.".
(b) (1) Section 4(e) of such Act is amended to read as follows:
"(e) The authority conferred, by this section shall not be exercised
with respect t;o any agricultural commodity, including fats and oils
or animal hides or skins, without the approval of the Secretary of
I Agriculture. The Secretary of Agriculture shall not approve the
exercise of such authority with respect to any such commodity during
any period for which the supply of such commodity is determined by
him to be in excess of the requirements of the domestic economy,
except to the extent the President determines that such exercise of
authority is required to effectuate the policies set forth in clause (B)
or (C) of paragraph (2) of section 3 of this Act."
(2) Any rule, proclamation, or order issued after July
1,"19721 under section 4 of the Export Administration Act of 1969,
exercising any authority conferred by such section with respect to
any agricultural commodity, including fats and oils or animal hides
or skins, shall cease to be effective upon the date of enactment of
this Act.
Sic. 105. Section 5 of the Export Administration -Act of 1969 is
amended by adding at the end thereof the followi n :
"(c) (1) Upon written request by representatives of a substantial
segment of any industry which produces articles, materials and sup-
plies, including technical da.t