Clinton Relaxes Computer Export Controls

February 2, 2000

Clinton Relaxes Computer Export Controls

By REUTERS

ASHINGTON -- President Clinton eased some U.S. computer export controls Tuesday to relax what the White House called "unnecessary regulatory burdens" on the high-performance computer industry.

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"This decision reflects my commitment to a control system that will enhance U.S. national security by implementing controls on computer exports that are effective and enforceable," Clinton said in a statement.
Bowing to the wishes of manufacturers, the administration relaxed a series of export limits. Unless Congress takes action to block the changes, most will take effect within about six months.
Clinton announced in an executive order that the United States would decontrol the export of all computers operating below 12,300 Millions of Theoretical Operations Per Second (MTOPS) to all countries except for so-called rogue nations.
That would be a computer capable of 12.3 billion operations per second, several times faster than ordinary desktop PCs or laptops but in the range of computer servers used in offices or to host web sites.
Companies exporting to "Tier III" countries (including China, Russia, India, Israel, and Pakistan) will still have to notify the Commerce Department 10 days prior to the shipment of any computer performing above 12,500 MTOPS.
Exports to "Tier II" nations will also require licensing for computers operating above 30,000 MTOPS.
And exports to "Tier IV" countries (Iraq, Libya, North Korea, Cuba, Sudan and Syria) remain unchanged, meaning the United States will maintain a virtual embargo on computer exports to those countries.
High-tech industry officials favored the changes but warned that a long-term solution to the problem was needed.
"We have urged the Administration to take this step and are encouraged by their efforts to keep pace with advances and innovations in the computer industry," said Ed Black, president of the Computer & Communications Industry Association.
"This announcement will provide us with a temporary reprieve, and we are hopeful that the government will continue to respond to developments in technology and global markets."
Black also urged the Congress and the administration to work with industry to reform the export control system.
"The current system is badly broken and doesn't truly reflect the nature of the computer industry," he said.
Clinton said he wanted to work with Congress to reduce the waiting period from six and four months to one month for the new regulations to go into effect.
He said the change was needed to "keep up with the rapid pace of technological advance."
"I also will work with Congress to explore long-term solutions to how we control exports of items like computers and microprocessors when they become widely available commodities," he said.
White House spokesman Jake Siewert said the export control issue had come up during a recent meeting Clinton had with leaders of high-tech companies.

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