CONFERENCE REPORT ON S. 737

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85-00003R000100030003-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 18
• Document Creation Date: December 21, 2016
• Document Release Date: October 27, 2008
• Sequence Number: 3
• Publication Date: September 27, 1979
• Content Type: REPORT

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H 8666 C
sinations Committee on Dec. 29, 1978, Chief
Counsel Blakey said: "Preliminary tests are
sufficient to cast into serious doubt the pre-
viously established time and intervals." That
evening the committee reached its conclu-
sion. Blakey believed that tests not yet con-
ducted would demonstrate that Oswald
could have fired twice with a hit on the
second shot within 1.66 seconds.
However, in an internal memorandum to
committee members dated March 22, 1979,
Blakey stated that of six test shooters, in-
cluding "four expert marksmen," firing a
total, of 35 shells, "no one achieved this de-
gree of proficiency." Thus, not only does it
appear unlikely that Oswald fired twice with
a hit on the second shot within 1.66 seconds,
it may be humanly impossible to do so. If
Oswald did not fire those shots, then the
impulses thought to be shots were not shots.
This simply negates the credibility of the
acoustics study and its conclusions.
Third, a reconstruction in 1964 by the
Warren Commission showed that between
frames 166 and 210 there was an oak tree
whose branches and leaves obscurred Os-
wald's view of his target, except for a brief
opening at frames 185-186. As was noted
above, the acoustics study places the second
shot at frame 191.
Thus, the acoustics study necessarily im-
plies that Oswald fired blindly and hit his
target. This illogical behavior is magnified
when one considers that Oswald had an un-
impeded stretch of approximately 100 yards
and several seconds in which to kill the
President. beginning a mere second later.
It seems clear that the necessary implica-
tions of the acoustics study are not con-
sistent with a reasonable scenario of the
assassination of President Kennedy. Thus, it
appears doubtful that the acoustics experts
were correct in concluding that a shot origi-
nated from the grassy knoll.
Why did the committee conclude there
was a conspiracy? Congressman Robert
Edgar, a dissenter from the conclusion, may
have put it best when he said: "We did a
great job up to the last moment, when in our
focus on the acoustics we failed to give
proper weight to other findings of the
investigation."
(Shanin Specter assisted Congressman
Robert Edgar in his work on the House As-
sassinations Committee. He is the son of
Arlen Specter, the former Philadelphia Dis-
trict Attorney and counsel to the Warren
Commission, which investigated the Ken-
nedy assassination.)
CORNELL LAW SCHOOL,
Ithaca, N.Y., July 30, 1979.
Mr. EDWIN GUTHMAN,
Editor, The Philadelphia Inquirer,
Philadelphia, Pa.
DEAR MR. GUTHMAN: Shanin Spector's
piece ("The JFK Conspiracy Theory Does
Not Hold Up," (7/23/79)) does an injustice
to the work of the Select Committee on As-
sassinations; it also raises questions about his
objectivity and competence.
I
The continued, almost exclusive concen-
tration by Spector and others on the con-
spiracy conclusions of the Select Commit-
tee ignores other important findings and
recommendations. The Committee also con-
cluded, for example, that no governmental
agency, foreign or domestic, was involved
in either the President's or Dr. King's mur-
der; and it made a variety of valuable rec-
ommendations, including the preparation of
a "White Paper" by the Department of Jus-
tice to settle doubts about the acoustical
study, and the enactment of charter legisla-
tion by the Congress to prevent another
harassment campaign by the F.B.I. similar
to that conducted against Dr. King.
NGRESSIONAL RECORD-HOUSE September 27, 1979
n
Spector's piece also misstates the Ken-
nedy conspiracy conclusion; it did not, in
fact, rest on the acoustical study alone. The
Final. Report explicitly premises the con-
clusion on four factors: 1) an inadequate
1964 conspiracy investigation that precludes
reliance today on its no conspiracy finding;
2) a finding of associates, who had the mo-
tive to murder the President, of Oswald and
Ruby who were unknown or unappreciated
by the Warren Commission; 3) the inability
of the Committee to rule out the complicity
of certain individuals; and 4) the scientific
fact of two shooters. Reading Spector's piece,
I wonder if he read the Final Report, an
indispensable prerequisite to discussing it,
much less criticizing it.
In
Contrary to Spector's assertion, no evi-
dence is "sharply inconsistent" with the
acoustical study. Proving that Oswald shot
the President, does not prove that another
was not also involved. In addition, it is a
half-truth to say that no one "saw" the
second gunman. In fact, a policeman, a.
Secret Service Agent, and a Korean veteran
(over whose head the third shot was fired)-
among others-said they "heard" the shot
from the knoll as well as the shots from the
Depository. Others "saw" smoke on the knoll.
(Modern guns do emit white gases.) Finally,
footprints were found behind the knoll
fence, and a policeman accosted a suspicious
person behind the fence, who identified
himself as a Secret Service agent, even
though no agent acknowledges being in that
area. As Spector does not note, these facts,
too, put the Kennedy conspiracy finding "in
perspective."
IV
The Committee itself acknowledged that
the term "conspiracy" had varying meanings
and might be misunderstood, as Specter com-
ments. Yet it also observed, rightly I believe,
that it had a duty to be candid.. If two per-
sons acted in concert to assassinate the Presi-
dent, that was a "conspiracy," no matter
how unpleasant the, word sounds. To have
used some euphemistic variation would have
been an unfortunate attempt to sugarcoat
the truth. (We have enough of sugarcoating
by government now. That-and not the
truth-is the cause of mistrust of govern-
ment.) No one who reads the Final Report-
something I recommend to Specter as well as
others who seek the truth-will fail to under-
stand the proper sense in which the term was
used.
v
Specter is right in saying that acceptance
of the acoustical study implies the acceptance
of its assassination scenario. But he is egre-
culations are, for example, imprecise; they
apparently do not reflect such distinctions as
average running time of the camera, cor-
rected time of the tape, and time of trigger
pull as opposed to time of impact. According
to the acoustical study, the first shot, not
noted by Specter, occurred around Zapruder
frame 156-161. It is, as such, consistent with
Governor Connally's testimony, rejected by
the Warren Commission, that he heard the
first shot, reacted to it, but was not hit by
it. Connally can, in fact, be seen in the film
to turn to his right at 162-167. (The startled
reaction of a little girl can also be seen in
the background.)
The second shot occurred around 188-191.
Contrary to Specter,' Connally's wrist is not
in sight during these frames, much less high
on his chest; from the configuration of his
shoulder and arm, the wrist appears to be on
the Governor's lap, right where it should be
to receive the impact of the second shot.
Specter has apparently not only not read the
Report, he has not carefully studied the film..
Expert F.B.I. testing in 1964 indicated the
rifle could be repeatedly shot at between 2.3
and 2.25 seconds, using the, telescopic sight.
Using the open iron sights, however, it is
possible, though difficult, to shoot the weapon
at a much faster pace. (I did it myself in
1.5) With familiarity with the weapon, which
Oswald had, accuracy can be added to speed;
it is hardly "humanly impossible" to shoot
the weapon as the acoustical study indicates
it was shot.
Specter also misleads his readers in dis-
cussing the tree. Apparently, he has never
seen ' a child run behind a picket fence.
While the child is "obscured," he can be
clearly seen as he runs; the 'mind's eye fills
in the details. In any event, the trigger pull
was probably 187, not 191, which is near to,
if not right at, the break in the foliage. The
acoustical study, therefore, hardly implies
"blind firing;" as Specter suggests.
vi
When former President Ford appeared be-
fore the Committee, he was asked why the
work of the Warren Commission had fallen
on such hard times. (80% of the American
people do not believe Oswald acted alone.)
The former President said its critics had "de-
liberately or negligently misled the American
people by misstating facts and omitting cru-
cial facts ...." He also noted that people
had not read the Warren Commission's Re-
port. Mr. Specter's piece seems to be follow-
ing in that tradition. It also seems to be less
an objective study of the work of the Com-
mittee than an effort to vindicate a father;
it also calls into question the quality of the
staff work that supported Congressman Ed-
gar's dissent to the Committee's conspiracy
conclusions;
Sincerely yours,
0. ROBERT BLAKEY,
Professor of Law,
^ 1910
GENERAL LEAVE
Mr. MAVROULES. Mr. Speaker, I ask
unanimous consent that all Members
may have 5 legislative days in which to
revise and extend their remarks and in-
clude extraneous material on the subject
of the special order speech today by the
gentleman from New York (Mr. MUR-
was no objection.
CONFERENCE REPORT ON
S. 737
Mr. BINGHAM submitted the follow-
ng conference report and statement on
the bill (S. 737) to provide authority to
regulate exports, to improve the effi-
ciencies of export regulation, and to
minimize interference with the ability
to engage in commerce.
CONFERENCE REPORT (H. REPT. No. 96-482)
The committee of conference on the dis-
agreeing votes of the two Houses on the
amendments of the House to the bill (S. 737)
to provide authority to regulate exports, to
improve the efficiencies of export regula-
tion, and to minimize interference with the
ability to engage in commerce, having met,
after full and free conference,' have agreed
to recommend and do recommend to 'their
respective Houses as follows:
That the Senate recede from its disagree-
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September 27, 1979 CONGRESSIONAL R.ECO:
our experts re-evaluated the 1964 test and
found that it was not only invalidly admin-
istered, but Invalidly Interpreted. In fact, it
showed deception.
In November 1966, Ruby granted a filmed
interview to the press; he was scheduled for
retrial in Pebruary. He mid: "Everything
pertaining to whath happened has never
come to the surface. The world will never
know the true facts of whet occurred: my
motive...." He added, "... [T]he people
who [have] . so much to gain .. .
Iwill] never let the true facts . . . come
. to the world." Unless the Kennedy
investigation Is pursued further, Ruby may
turn out to be right; he was for 15 years.
Belin's Individual erro3s could be docu-
mented further, but his major charges also
require response. Bolin ownplalns that the
Warren Commission did not have Its day In
Court; he was not permitted to testify in
public session in the Commission's defense.
Belin was given an opportunity to appear In
executive session or by deposition; he could
have made his deposition public. Other
Warren Commission lawyers. Including its
general counsel, followed this procedure. All
members of the Commission and the gen-
eral counsel, in fact, appeared before the
Committee in public session,. something
Belin knows, since he appeared with former
President Ford, a member of the Commis-
sion. Belin was not called as a witness in a
public session because a review of his work
showed that he had little to offer. He did
not play a key role in the work of the Com-
mission. His testimony about the facts of
the assassination was secondhand. The
Committee preferred its facts firsthand.
Next, Belin offers a theory as to, why the
Committee went wrong; he blames it on_ the
staff and that the Committee's work was
conducted in secret.
I have been associated with the work of
Congressional Committees for almost twenty
years. No Committee that i have ever worked
with was more democratic, knowledgeable, or
more in control of its own processes than
the Select Committee. Indeed, the Select
Committee was probably more democratic,
knowledgeable, and more in control of its
processes than was the Warren Commission.
Witness the dissents to the work of the
Committee, but not the Commission. I make
that judgment based on a two-year study of
the Warren Commission and personal experi-
ence with the Select Committee. When did
Belin conduct a similar study of the Com-
mittee? He has not even read our report.
Belin's secrecy comment is ironic. The
Warren Commission held one day of public
hearings. Belin. who was Executive Director
of the Rockefeller Commission, was not able
to persuade his own Commission to do better.
The Select Committee held almost forty
days of public hearings on the' evidence
gathered in its two-year Investigation of the
Kennedy and King cases, where the Com-
mittee's work was open to public scrutiny.
Each of the issues he criticizes were, In fact,
raised in public hearings.
The Committee's investigation was not
held entirely in public for obvious reasons.
Classified information was involved. Reputa-
tions were at stake. The Committee had a
duty, under House Rules, to evaluate its
evidence before it was made public. Belin
knows the character of the allegations in
the Kennedy case. Even though many of the
allegations have proven to be irresponsible,
they had to be checked out, first confiden-
tially. Would he have had the Committee do
otherwise?
Last. Belin grumbles that the Committee
made up its mind at the last minute. The
Committee had the basic acoustical evidence
in July. It knew then what it portended. It
all depended on what the final verdict of
the scientists was. That came in November.
When should the Committee have made up
]ROUSE 195665
its mind, except at the end when all the evi-
dence was in?
When President Ford appeared before the
Committee he was asked why the work of the
Warren Commission had fallen on such hard
times. First, the former President said that
its critics had "deliberately or negligently
misled the American people by misstating
facts and omitting crucial facts.... " Second,
he suggested that many people were cynical.
Third, he observed that people had not read
the report.
The Select Committee should be accorded,
at least from former Warren Commission
staff members, the same they themselves
would have wished to have received. I sug-
gest that Mr. Belin should heed the advice
of his client.
Sincerely,
0. ROBERT BLAB:EY,
Professor of Law, Cornett Law School.
(Former Chief Counsel and Staff Direc-
tor, Select Committee on Assassina-
tions.)
THE JFK CONSPIRACY THEORY DOESN'T
HOLD UP
(By Shanin Specter)
The House Assassinations Committee was
charged with informing the American public,
once and for all, of the facts of the murders
of John Kennedy and Martin Luther King.
Yet, it appears their report will only exacer-
bate the very problems the committee sought
to eradicate: lingering public concern and
doubt over these watershed events of the
troubling 1960s and mistrust in the ability
of the government to find an answer to the
argument over who killed John Kennedy.
The big story of the House report is the
conclusion that President Kennedy Was
"probably assassinated as a result of a con-
spiracy." What is the evidence for this con-
clusion? The only hard evidence of a second
gunman is the results of a complex acoustics
study.
The study was conducted on a scratchy
recording that was made when a police
motorcycle whose microphone was stuck open
transmitted the sounds of the assassination.
to the police radio tape at the Dallas police
headquarters. The study concluded that of
the dozens of impulses on the tape, four of.
these impulses represent shots fired at the
presidential limousine: the first, second and
fourth from Oswald's lair and the third from
the grassy knoll. From this, the conspiracy
conclusion was born.
Although the acoustics study is a scienti-
fically-derived body of data, there is little
precedence indicating how to contextualize
this arcane evidence in light of the other
evidence. That is, without the benefit of the
application of similar studies in the past, how
do we evaluate Its possible defects and judge
its relative weight among all the evidence?
The other evidence is sharply inconsistent
with the acoustics study. Neither a second
gunman nor his gun was seen by the more
than 100 persons in position to see. His
identity or possible involvement with Oswald
has never been discovered,
No known impact was made by the bullet
upon the presidential limousine, its occu-
pants or anyone or anything else, even
though its target was only, about 25 yards
away. Although this series of non-entities
does not prove there was no second gunmen,
it does put into perspective the quenatdty of
evidence of a conspiracy.
It is interesting to note that the evidence
that Oswald acted alone is so strong that the
House Committee's draft final report, written
before the testimony of the acoustics experts,
stated that "there is Insufficient evidence to
find there was a conspiracy."
While the evidence of a conspiracy Is ten-
uous, the evidence that Oswald was the
assassin is irrefutable. To the committee's
credit, they conducted a series of ballistic,
photographic, forensic and trajectory studies
that prove that President Kennedy and Gov-
ernor Connally were struck by exactly two
bullets, both fired by Oswald.
It should be noted that these studies were
precisely those sought by critics of the lone
assassin viewpoint. Thus, though the com-
mittee's conclusion was "conspiracy, ' the
preponderance of its findings, including af-
firmation of the single-bullet theory, are
consistent with the Warren Commission's
findings.
Furthermore, the term "conspiracy" has
unwarranted ominous implications. The term
conspiracy has widely varying meanfaga,
most of which connote an institutionally
based effort. For this, there is no evidence.
While collusion to break the law is, in legal
terms, a conspiracy, the purpose of the House
Assassinations Committee was to inform us
on the facts of the assassination. By the use .
of the term conspiracy, the committee does a
disservice to the understanding of the Amer-
ican public.
Beyond the need to place the acoustics
evidence in proper perspective, there is a real
question as to whether the evidence is de-
pendable. While the acoustics experts were
asked only to isolate which impulses on the
tape were shots and whether their origin was
the grassy knoll or the Texas School Book
Depository, their conclusions imply a sce-
nario of the assassination. That is, the tape
provides a timepiece for the assassination.
The acoustics analysis holds that the sec-
ond shot occurred 1.66 seconds after the first,
the third 5.83 seconds after the second and
fourth .82 seconds after the third.
Because of the Zapruder film, a motion
picture of the assassination, was running at
18.3 frames per second and because President
Kennedy was struck in the head by the
fourth shot in frame 313, one can count back-
ward and closely approximate the moments
in the film when the other shots were fired.
If the acoustics experts were wrong about
which impulses were shots, they stand a good
chance of being wrong in stating which
impulses were shots and from where they
originated. Thus, if we are to accept this
study-and with it, the conspiracy conclu-
sion-then we must accept the scenario of the
assassination it necessarily implies. There are
three major problems with this scenario.
First, the committee has concluded that
the second shot was the one that passed
through both President Kennedy and Gov-
ernor Connally. Although the evidence is Ir-
refutable that one bullet did do this, it could
not have been fired at this time. According
to the acoustics study, the second shot oc-
curred 6.65 seconds before the fourth.
A little multiplication and subtraction
yields the conclusion that the second shot
should have Impacted at or near frame 191.
A look at frame 191 and those surrounding it
shows that Governor Connally's wrist r7W
well above his chest, almost to his neckline,
at this moment. But, the bullet exited a'-
proximately 4 inches below his right nlpplo
and entered his wrist travelling downward.
Fifteen or-so frame later, Connally's wrist is
substantially lower. it is at this point, or
somewhat later, when Connally Is obliterated
from view by a sign, that it is likely he wan
shot.
Second, the acoustics study concludes that
two shots were fired from the area of Os-
wald's perch within 1.66 seconds of each
other. Unless there were two gunmen firing
from the window (a frighteningly compli-
cating concept for which there is no evi-
dence), we must conclude that Oswald fired
those two shots.
FBI expert testimony to the Warren Com-
mission indicated that Oswald rifle could
not be reaimed and refired in less than 2.3
seconds. Speaking before the House Assas-
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September 27, 1979 CONGRESSIONAL RIECORD-HOUSE
meet to the amendment of the House to
the text of the bill and agree to the same
with an amendment as follows: In lieu
of the matter proposed to be inserted by the
house amendment insert the following:
SHORT TITLE
SECTION 1. This Act may be cited as the
"Export Administration Act of 1979".
FINDINGS
SEC. 2. The Cong Iso ma! e3 the following
findings:
(1) The ahility of United States citizens
to engage in international commerce is a
fundamental conosm of United States policy.
(2) Exports contribute significantly to the
economic well-being of the United States
and the stability of the world economy by
increasing employment and production in
the United States, and by strengthening the
trade. balance and the value of the United
States dollar, thereby reducing inflation. The
restriction of exports from the United States
can have serious adverse effects on the bal-
ance of payments and on domestic employ-
ment, particularly when restrictions applied
by the United States are more extensive than
those imposed by other countries.
(3) It is important for the national in-
terest of the United States that both the pri-
vate sector and the Federal Government place
a high priority on exports, which would
strengthen the Nation's economy.
(4) The availability of certain materials at
home and abroad varies so that the quanitity
and composition of United States exports
and their distribution among importing
countries may affect the welfare of the do-
mestic economy and may have an important
bearing upon fulfillment of the foreign policy
of the United States.
(5) Exports of goods or technology with-
out regard to whether they make a significant
contribution to the military potential of in-
dividual countries or combinations of coun-
tries may adversely affect the national se-
curity of the United States.
(6) Uncertainty of export control policy
can curtail the efforts of American business
to the detriment of the overall attempt to
improve the trade balance of the United
States.
(7) Unreasonable restrictions on access to
world supplies can cause worldwide political
and economic instability, interfere with free
international trade, and retard the growth
and development of nations.
(8) It is important that the administration
of export controls imposed for national se-
curity purposes give special emphasis to the
need to control exports of technology (and
goods which contribute significantly to the
transfer of such technology) which could
make a significant contribution to the mili-
tary potential of any country or combination
of countries which would be detrimental to
the national security Of the United States.
(9) Minimization of restrictions on ex-
ports of agricultural commodities and prod-
ucts is of critical importance to the main-
tenance of a sound agricultural sector, to
achievement of a positive balance of pay-
ments, to reducing the level of Federal ex-
penditurea for agricultural support programs.
and to United States cooperation in efforts
to eliminate malnutrition and world hunger.
DECLARATION"OD POLICY
SEC. 3. The Congress makes the following
declarations:
(1) It is the policy of the United States to
minimize uncertainties in export control
policy and to encourage trade with all caun-
tries with which the United States has diplo-
matic or trading relations, except those
countries with which such trade has been
determined by the President to be against
the national interest.
(2) It is the policy of the United States to
use export controls only after full considers-
tion of the impact on the economy of the
United States and only to the extent neces-
sary-
(A) to restrict the export of goods and
technology which would make a significant
contribution to the military potential of any
other country or combination of countries
which would prove detrimental to the na-
tional security of the United States;
(B) to restrict the export of goods and
technology where necessary to further sig-
nificantly the foreign policy of the United
States or to fulfill its declared international
obligations; and
(C) to restrict the export of goods where
necessary to protect the domestic economy
from the excessive drain of scarce materials
and to reduce the serious inflationary im-
pact of foreign demand.
(3) It is the policy of the United States
(A) to apply any necessary controls to the
maximum extent passible in cooperation
with all nations, and (B) to encourage ob-
servance of a uniform export control policy
by all nations with which the United States
has defense treaty commitments.
(4) It is the policy of the United States
to use its economic resources and trade
potential to further the round growth end
stability of its economy as well as to further
its national security and foreign policy ob-
jectives.
(5) It is the policy of the United States-
(A) to oppose restrictive trade practices
or boycotts fostered or imposed by foreign
countries against other countries friendly
to the United States or against any United
States person:
(B) to encourage and, in specified cases,
require United States persona engaged in the
export of goods or technology or other in-
formation to refuse to take actions, includ-
ing furnishing information or entering into
or implementing agreements, which have
the effect of furthering or supporting the
restrictive trade practices or boycotts fes-
tered or imposed by any foreign country
against a country friendly to the United
States or against any United States person;
and
(C) to foster international cooperation
and the development of international rules
and institutions to assure reasonable access
to world supplies.
(6) It is the policy of the United States
that the desirability of subjecting, or con-
tinuing to subject, particular goods or tech-
nology or other information to United
States export controls should be subjected to
review by and consultation with representa-
tives of appropriate United States Govern-
ment agencies and private industry.
(7) It is the policy of the United States
to use export controls, including license fees,
to secure the removal by foreign countries
of restrictions on access to supplies where
such restrictions have or may have a serious
domestic inflationary impact, have caused
or may cause a serious domestic shortage,
or have been imposed for purposes of in-
fluencing the foreign policy of the United
States. In effecting this policy, the President
shall make every reasonable effort to secure
the removal or reduction of such restric-
tions, policies, or actions through Interna-
tional cooperation and agreement before re-
sorting to the imposition of controls on ex-
ports from the United States. No action
taken in fulfillment of the policy set forth
in this paragraph shall apply to the export
of medicine or medical supplies.
(8) It is the policy of the United States to
use export controls to encourage other coun-
tries to take immediate steps to prevent the
use of their territories or resources to aid,
encourage, or give sanctuary to those per-
sons involved in directing, supporting, or
participating in acts of international terror-
ism. To achieve this objective, the President
shall make every reasonable effort to secure
98667
the removal or reduction of such assistance
to international terrorists through interna-
tional cooperation and agreement before re-
sorting to the imposition of export controls.
(9) It is the policy of the United States
to cooperate with other countries with which
the United States has defense treaty com-
mitments in restricting the export of goods
and technology which would make a signif-
icant contribution to.the military potential
of any country or combination, o2 countries
which would prove detrimental to the es-
curity of the United States and of those
countries with which the United States has
defense treaty commitments.
(19) It is the policy of the United States
that export trade by United States citizens
be given a high priority and not be con-
trolled except when such controls (A) are
necessary to further fundamental national
security, foreign policy, or short supply ob-
jectives, (B) will clearly further such objec-
tives, and (C) are administered consistent
with basic standards of due process.
(11) It is the policy of the United States
to minimize restrictions on the export of
agricultural commodities and products.
GENERAL PROVISIONS
SEC. 4. (a) TYPES of LicENsEs.-Under
such conditions as may be imposed by the
Secretary which are consistent with the
provisions of this Act, the Secretary may
require any of the following types of ex-
port licenses:
(1) A validated license, authorizing a
specific export, issued pursuant to an appli-
cation by the exporter.
(2) A qualified general license, authoriz-
ing multiple exports, issued pursuant to an
application by the exporter.
(3) A general license, authorizing ex-
ports without application by the exporter.
(4) Such other licenses as may assist in
the effective and efficient implementation
of this Act.
(b) COMMODITY CONTROL Lssr. The Sec-
retary shall. establish and maintain a list
(hereinafter in this Act referred to as the
"commodity control list") consisting of any
goods or technology subject to export pon-
trois under this Act.
(c) FoaEIGN AvAILABILITY.-In accordance
with the provisions of this Act, the President
shall not impose export controls for foreign
policy or national security purposes on the
export from the United States of goods or
technology which he determines are avail-
able without restriction from sources out-
side the United States in significant quanti-
ties and comparable in quality to these pro-
duced in the United States, unless the Eyes-
ident determines that adequate evidence
has been presented to him demonstrating
that the absence of such controls would
prove detrimental to the foreign policy or
national security of the United States.
(d) l$IGHT OF ExpoRT.-No authority or
permission to export may be required un-
der this Act, or under regulations issued un-
der this Act, except to carry out the policies
set forth in section 3 of this Act.
(e) DELEGATION OF AUTHORITY.-The Pres-
ident may delegate the power, authority, and
discretion conferred upon him by this Act
to such departments, agencies, or officials of
the Government as he may consider appro-
priate, except that no authority under this
Act may be delegated to, or exercised by,
any official of any department or agency the
head of which is not appointed by the Pres-
ident, by and with the advice and consent
of the Senate. The President may not dele-
gate or transfer his power, authority, and
discretion to overrule or modify any recom-
mendation or decision made by the Secretary,
the Secretary of Defense, or the Secretary of
State pursuant to the provisions of this Act.
(f) NOTIPICATIOI7 OF THE PUBLIC; CONSUL-
TATION Wn'z Bus sizes. The Secretary shall
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keep the public fully apprised of changes
in export control policy and procedures in-
stituted in conformity with this Act with
a view to encouraging trade. The Secretary
shall meet regularly with representatives of
the business sector in order to obtain their
views on export control policy and the for.,
eign availability of goods and technology.
NATIONAL SECURITY CONTROLS
SEC. 5. (a) AUTHORITY.-(I) In order to
carry out the policy set forth in section
3(2) (A) of this Act, the President may, in
accordance with the provisions of this sec-
tion, prohibit or curtail the export of any
goods or technology subject to the jurisdic-
tion of the United States or exported by any
person subject to the jurisdiction of the
United States. The authority contained in
this subsection shall be exercised by the Sec-
retary, in consultation with the Secretary
of Defense, and such other departments and
agencies as the Secretary considers appro-
priate, and shall be implemented by means
of export licenses described in section 4(a)
of this Act.
(2) (A) Whenever the Secretary makes any
revision with respect to any goods or tech-
nology, or with respect to the countries or
destinations, affected by export controls im-
posed under this section, the Secretary shall
publish in the Federal Register a notice of
such revision and shall specify in such
notice that the revision relates to controls
imposed under the authority contained in
this section.
(B) Whenever the Secretary denies any
export license under this section, the Secre-
tary shall specify in the notice to the appli-
cant of the denial of such license than the
license was denied under the authority con-
tained in this section. The Secretary shall
also include in such notice what, if any,
modifications in or restrictions on the goods
or technology for which the license was
sought would allow such export to be com-
patible with controls imposed under this
section, or the Secretary shall indicate in
such notice which officers and employees of
the Department of Commerce who are famil-
iar with the application will be made reason-
ably available to the applicant for consulta-
tion with regard to such modifications or
restriction, if appropriate.
(3) In issuing regulations to carry out this
section, particular attention shall be given
to the difficulty of devising effective safe-
guards to prevent a country that poses a
threat to the security of the United States
from diverting critical technologies, to mili-
tary use, the difficulty of devising effective
safeguards to protect critical goods, and the
need to take effective measures to prevent
the reexport of critical technologies from
other countries to countries that pose a
threat to the security of the United States.
Such regulations shall not be based upon
the assumption that such effective safe-
guards can be devised.
(b) POLICY TOWARD INDIVIDUAL COUN-
TRIES.-In administering export controls for
national security purposes under this sec-
tion, United States policy toward individual
countries shall not be determined exclusively
on the basis of a country's Communist or
non-Communist status but shall take -into
account such factors as the country's pres-
ent and potential relationship to the United
States, its present and potential relation-
ship to countries friendly or hostile to the
United States, its ability and willingness to
control retransfers of United States exports
in accordance with United States policy, and
such other factors as the President considers
appropriate. The President shall review not
less frequently than every three years in
the case of controls maintained cooperatively
with other nations, and annually in the case
of all other controls, United States policy
toward individual countries to determine
whether such policy is appropriate In light
CONGRESSIONAL RECORD-. HOUSE September 27, 1979
of the factors specified in the preceding
sentence.
i(c) CONTROL LrsT.-(l) The Secretary shall
establish and maintain, as part of the com-
modity control list, a list of all goods and
technology subject to export controls under
this section. Such goods and technology
shall be clearly Identified as being subject
to controls under this section.
'(2) The Secretary of Defense and other ap-
propriate departments and agencies shall
identify goods and technology for inclusion
on the list referred to in paragraph (1).
Those items which the Secretary and the
Secretary of Defense concur shall be subject
to export controls under this section shall
comprise such list. If the Secretary and the
Secretary of Defense are unable to concur on
such items, the matter shall be referred to
the President for resolution.
(3) The Secretary shall issue regulations
providing for review of the list established
pursuant to this subsection not less fre-
quently than every three years in the case
of controls maintained cooperatively with
other countries, and annually in the case of
all other controls, in order to carry out the
policy set forth in section 3(2) (A) and the
provisions of this section, and for the
prompt issuance of such revisions of the list
as may be necessary. Such regulations shall
provide interested Government agencies and
other affected or potentially affected parties
with an opportunity, during such review, to
submit written data, views, or arguments,
with or without oral presentation. Such
regulations shall further provide that, as
part of such review, an assessment be made
of the availability from sources outside the
United States, or any of its territories or
possessions, of goods and technology com-
paraJble to those controlled under this sec-
tion. The Secretary and any agency render-
ing advice with respect to export controls
shall keep adequate records of all decisions
made with respect to revision of the list of
controlled goods and technology, Including
the factual and analytical basis for the deci-
sion, and, in the case of the Secretary, any
dissenting recommendations received from
any agency. .
(d) MILITARILY CRITICAL TECHNOLOGIES:
(1) The Secretary, in consultation with the
Secretary of Defense, shall review and revise
the list established pursuant to subsection
(c), as prescribed in paragraph (3) of such
subsection, for the purpose of insuring that
export controls imposed under this section
cover and (to the maximum extent consist-
ent with the purposes of this Act) are lim-
ited to militarily critical goods and tech-
nologies and the mechanisms through which
such goods and technologies may be effec-
tively transferred.
(2) The Secretary of Defense shall bear
primary responsibility for developing a list of
militarily critical technologies. In develop-
ing such list; primary emphasis shall be
given to-
(A) arrays of design and manufacturing
know-how,
(B) keystone manufacturing, inspection,
and test equipment, and
(C) goods accompanied by sophisticated
operation, application, or maintenance
know-how,
which are not possessed by countries to
which exports are controlled under this sec-
tion and which, If exported, would permit a
significant advance in a military system of
any such country.
? (3) The list referred to in paragraph (2)
shall be sufficiently, specific to guide the de-
terminations of any official exercising export
licensing responsibilities under this Act.
(4) The initial version of the list referred
to in paragraph (2).shall'be completed and
published in an appropriate form in the
Federal Register not later than October 1,
1980.
(5) The list of militarily critical tech-
nologies developed primarily by the Secretary
of Defense pursuant to paragraph (2) shall
become a part of the commodity control list,
subject to the provisions of subsection (c) of
this section.
(6) The Secretary of Defense shall report
annually to the Congress on actions taken to
carry out this subsection.
(e) EXPORT LICENSES.-(l) The Congress
finds that the effectiveness and efficiency of
the process of making export licensing deter-
minations under this section is severely ham-
pered by the large volume of validated ex-
port license applications required to be sub-
mitted under this Act. Accordingly, it is the
intent of Congress in this subsection to en-
courage the use of a qualified general license
in lieu of a validated license.
(2) . To the maximum extent practicable,
consistent with the national security of the
United States, the Secretary shall require a
validated license under this section ,for the
export of goods or technology only if-
(A) the export of such goods or technology
Is restricted pursuant to a multilateral agree-
ment, formal or informal, to which the
United States is a party and, under the terms
of such multilateral agreement, such export
requires the specific approval of the parties
to such multilateral agreement;
(B) with respect to such goods or tech-
nology, other nations do not possess capa-
bilities comparable to those possessed by the
United States; or
(C) the United States is seeking the agree-
ment of other suppliers to apply compar-
able controls to such goods or technology
and, in the judgment of the Secretary,
United States export controls on such,goods
or technology, by means of such license, are
necessary pending the conclusion of such
agreement.
(3) To the maximum extent practicable,
consistent with the national security of the
United States, the Secretary shall require a
qualified general license, in lieu of a vali-
dated license, under this section for the
export of goods or technology if.,the export
of such goods or technology is restricted
pursuant to a multilateral agreement,
formal or informal, to which the United
States is a party, but such export does not
require the specific approval of the parties
to such multilateral agreement.
(4) Not later than July 1, 1980, the Secre-
tary shall establish procedures for the ap-
proval of goods and technology that may be
exported pursuant to a qualified general li-
cense.
(f) FOREIGN AVAILABILITY.-(1) The Sec-
retary, in consultation with appropriate
Government agencies and with appropriate
technical advisory committees established
pursuant to subsection (h) of this section,
shall review, on a continuing basis, the
availability, to countries to, which exports
are controlled under this section, from
sources outside the United States, including
countries which participate with the United
States in multilateral export controls, of any
goods or technology the export of which re-
quires a validated license under this sec-
tion. In any case in which the Secretary
determines, in accordance with procedures
and criteria which the Secretary shall by
regulation establish, that any such goods or
technology are available in fact to such des-,
tinations from such sources in sufficient
quantity-and of sufficient quality so that the
requirement of a validated license for the
export of such goods or technology is or
would be ineffective in achieving the pur-
pose set forth in subsection (a) of this sec-
tion, the Secretary may not, after the de-
termination is made, require a validated li-
cense for the export of such goods or tech-
nology during the period of such foreign
availability, unless the President determines
that the absence of ,e port 'controls under
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this section would prove detrimental to the
national security of the United States. In
any case in which the President determines
that export controls under this section must
be maintained notwithstanding foreign
availability, the Secretary shall publish that
determination together with a concise state-
ment of its basis, and the estimated eco-
nomic impact of the decision.
(2) The Secretary shall approve any ap-
plication for a validated license which is
required under this section for the export
of any goods or technology to -a particular
country and which meets all other require-
ments for such an application, if the Secre-
tary determines that such goods or tech-
nology will, if the license is denied, be
available in fact to such country from
sources outside the United States, including
countries which participate with the United
States In multilateral export controls, in
sufficient quantity and of sufficient quality
so that denial of the license would be in-
effective In achieving the purpose set forth
In subsection (a) of this section, subject to
the exception set forth in paragraph (1) of
this subsection. In any case in which the
Secretary makes a determination of foreign
availability under this paragraph with
respect to any goods or technology, the Sec-
retary shall determine whether a determina-
tion of foreign availability under paragraph
(1) with respect,to such goods or technology
Is warranted.
(3) With respect to export controls im-
posed under this section, any determination
of foreign availability which is the basis of
a decision to grant a license for, or to remove
a control on, the export of a good or tech-
nology, shall be made in writing and shall
be supported by reliable evidence, including
scientific or physical examination, expert
opinion based upon adequate factual In-
formation, or intelligence information. In
assessing foreign availability with respect to
license applications, uncorroborated rep-
resentations by applicants shall not be
deemed sufficient evidence of foreign avail-
ability.
(4) In any case in which, in accordance
with this subsection, export controls are im-
posed under this section notwithstanding
foreign availability, the President shall take
steps to Initiate negotiations with the gov-
ernments of the appropriate foreign coun-
tries for the purpose of eliminating such
availability. Whenever the President has rea-
son to believe goods or technology subject to
export control for national security purposes
by the United States may become available
from other countries to countries to which
exports are controlled under this section and
that such availability can be prevented 'or
eliminated by means of negotiations with
such other countries, the President shall
promptly initiate negotiations with thelgov-
ernmenterof such.other countries to prevent
such foreign availability.
(6) In order to further carry out the pol-
icies set forth In this Act, the secretary shall
establish, within the Office of Export Ad-
ministration of the Department of Com-
merce, a capability to monitor and gather
Information with respect to the - foreign
'availability of any goods or technology sub-
ject to export controls under this Act.
(6) Each department or agency of the
United States with responsibilities with re-
spect to export controls, including intelli-
gence agencies, shall, consistent with the
protection of intelligence sources and meth-
ods, furnish information to the Office of Ex-
port Administration concerning foreign
availability of goods and technology subject
to export controls under this Act, and such
Office, upon request or where appropriate.
shall furnish to such departments and agen-
cies the information it gathers and receives
concerning foreign availability.
(g) INDEXING.-In order to ensure that re-
quirements for validated licenses and quali-
fled general licenses are periodically removed
as goods or technology subject to such re-
quirements become obsolete with respect to
the national security of the United States,
regulations issued by the Secretary may,
where appropriate, provide for annual in-
creases in the performance levels of goods or
technology subject to any such licensing re-
quirement. Any such goods or technology
which no longer meet the performance levels
established by the latest such increase shall
be removed from the list established pursu-
ant to subsection (c) of this section unless,
under such exceptions and under such pro-
cedures as the Secretary shall prescribe, any
other department or agency of the United
States objects to such removal and the Sec-
retary determines, on the basis of such ob-
jection, that the goods or technology shall
not be removed from the list. The Secretary
shall also consider, where appropriate, re-
moving site visitation requirements for
goods and technology which are removed
from the list unless objections described in
this subsection are raised.
(h) TECHNICAL ADVISORY COMMrrTEEs.-(1)
Upon written request by representatives of
a substantial segment of any industry which
produces any goods or technology subject to
export controls under this section or being.
considered for?such controls because of their
significance to the national security of the
United States, the Secretary shall appoint a
technical advisory committee for any such
goods or technology which the Secretary de-
termines are difficult to evaluate because of
questions concerning technical- matters,
worldwide availability, and actual utiliza-
tion of production and technology, qr licens-
ing procedures. Each such committee shall
consist of representatives of United States
industry and Government, including the De-
partments of Commerce, Defense, and State,
and, in the discretion of the Secretary, other
Government departments and agencies. No
person serving on any such committee who
is a representative of industry shall serve on
such committee for more than four con-
secutive years.
(2) Technical advisory committees estab-
lished under paragraph (1) shall advise and
assist the Secretary, the Secretary of De-
fense, and any other department, agency-or
official of the Government of the United
States to which the President delegates au-
thority under this Act, with respect to ac-
tions designed to carry out the policy set
forth in section 3(2) (A) of this Act. Such
committees, where they have expertise in
such matters, shall be consulted with re-
spect to questions involving (A) technical
matters, (B) worldwide availability and ac-
tual utilization of production technology,
(C) licensing procedures which affect the
level of export controls applicable to any
goods or technology, and (D) exports subject
to multilateral controls in which the United
States participates, including proposed re-
visions of any such multilateral controls.
Nothing in this subsection shall prevent the
Secretary or the Secretary of Defense from
consulting, at any time, with any person
representing industry or the general public,
regardless of whether such person is a mem-
ber of a technical advisory committee. Mem-
bers of the public shall be given a reasonable
opportunity, pursuant to regulations pre-
scribed by the Secretary, to present evidence
to such committees.
(3) Upon request of any member of any
such committee, the Secretary may, if the
Secretary determines it appropriate, reim-
burse such member for travel, subsistence,
and other necessary expenses incurred by
such member in connection with the duties
of such member.
(4) Each such committee shall elect a
chairman, and shall meet at least every three
months at the call of the chairman, unless
the chairman determines, in consultation
with the other members of the committee,
8669
that such ' a meeting Is not necessary to
achieve the purposes of this subsection. Each
such committee shall be terminated after a
period of two years, unless extended by the
Secretary for additional periods of two
years. The Secretary shall consult each such
committee with respect to such. termination
or extension of that committee.
(5) To facilitate the work of the technical
advisory committees, the Secretary, in con-
junction with other departments and
agencies participating in the administration
of this Act, shall disclose to each such com-
mittee adequate information, consistent with
national security, pertaining to the reasons
for the export controls which are in effect or
contemplated for the goods or technology
with respect to which that committee
furnishes advice.
(6) Whenever a technical advisory com-
mittee certifies to the Secretary that goods
or technology with respect to which such
committee was appointed have become avail-
able in fact, to countries to which exports
are controlled - under this section, from
sources outside the United States, including
countries which participate with the United
States in multilateral export controls, in
sufficient quantity and of sufficient quality
so that requiring a validated license for the
export of such goods or technology would
be ineffective in achieving the purpose set
forth in subsection (a) of this section, and
provides adequate documentation for such
certification, in accordance with the pro-
cedures established pursuant to subsection
(f) (1) of this section, the Secretary shall in-
vestigate such availability, and If such avail-
ability is verified, the Secretary shall remove
the requirement of a validated license for the
export of the goods or technology, unless
the President determines that the absence of
export controls under this section would
prove detrimental to the national security of
the United States. In any case in which the
President determines that export controls
under this section must be maintained not-
withstanding foreign availability, the Secre-
tary shall publish that determination to-
gether with a concise statement of its basis
and the estimated economic impact of the
decision.
(I) MULTILATERAL EXPORT CONTROLS.-The
President shall enter into negotiations with
the governments participating in the group
known as the Coordinating Committee (here-
inafter in this subsection referred to as the
"Committee") with a view toward accom-
plishing the following objectives:
(1) Agreement to publish the list of items
controlled for export by agreement of the
Committee, together with all notes, under-
standings, and other aspects of such agree-
ment of the Committee, and all changes
thereto.
(2) Agreement to hold periodic meetings
with high-level representatives of such gov-
ernments, for the purpose of discussing ex-
port control policy issues and issuing policy
guidance to the Committee.
(3) Agreement to reduce the scope of the
export controls imposed by agreement of the
Committee to a level acceptable to and en-
forceable by all governments participating
in the Committee.
(4) Agreement on more effective proce-
dures for enforcing the export controls
agreed to pursuant to paragraph (3).
(j) COMMERCIAL AGREEMENTS WITH CER-
TAIN COUNTRIES.-(l) Any United States
firm, enterprise, or other nongovernmental
entity which, for commercial purposes, en-
ters into any agreement with any agency of
the government of a country to which ex-
ports are restricted for national security pur-
poses, which agreement cites an intergovern-
mental agreement (to which the United
States and such country are parties) calling
for the encouragement of technical coopera-
tion and is intended to result in the export
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from the United States to the other party
of unpublished technical data of United
States origin, shall report the agreement
with such agency to the Secretary.
(2) The provisions of paragraph (1) shall
not apply to colleges. universities, or other
educational institutions.
(k) NEGOTIATIONS WITH OTHFR COUN-
TRIES.-The Secretary of State, in consulta-
tion with the Secretary of Defense, the
Secretary of Commerce, and the heads of
other appropriate departments and agencies,
shall be responsible for conducting negotia-
tions with other countries regarding their
cooperation in restricting the export of goods
and technology in order to carry out the
policy set forth in section 3(9) of this Act,
as authorized by subsection (a) of this sec-
tion, including negotiations with respect to
which goods and technology should be sub-
ject to multilaterally agreed export restric-
tions and what conditions should apply for
exceptions from those restrictions.
(1) DIVERSION TO MILrrARY USE OF CON-
TROLLED GOODS OR TECHNOLOGY: (1) When-
ever there is reliable evidence that goods or
technology, which were exported subject to
national security controls under this section
to a country to which exports are controlled
for national security purposes, have been
diverted to significant military use in viola-
tion of the conditions of an export license,
the Secretary, for as long as that diversion
to significant military use continues-
(A) shall deny all further exports to the
party responsible for that diversion of any
goods or technology subject to national
security controls under this section which
contribute to that particular military use,
regardless of whether such goods or tech-
nology are available to that country from
sources outside the United States; and
(B) may take such additional steps under
this Act with respect to the party referred
to in subparagraph (A) as are feasible to
deter the further military use of the pre-
viously exported goods or technology.
(2) As used in this subsection, the terms
"diversion to significant military use" and
"significant military use" means the use of
United States goods or technology to design
or produce any item on the United States
Munitions List.
FOREIGN POLICY CONTROLS
SEC. 6. (a) AUTHORrrY.-(1) In order to
carry out the policy set forth in paragraph
(2) (B), (7), or (8) of section 3 of this Act,
the President may prohibit or curtail the ex-
portation of any goods, technology, or other
information subject to the jurisdiction of the
United States or exported by any person sub-
ject to the jurisdiction of the United States,
to the extent necessary to further signifi-
cantly the foreign policy of the United States
or.to fulfill its declared international obliga-
tions. The authority granted by this sub-
section shall be exercised by the Secretary,
in consultation with the Secretary of State
and such other departments and agencies as
the Secretary considers appropriate, and shall
be implemented by means of export licenses
issued by the Secretary.
(2) Export controls maintained for foreign
policy purposes shall expire on December 31,
1979. or one year after imposition, which-
ever is later, unless extended by the Presi-
dent in accordance with subsections (b)
and (e). Any such extension and any sub-
sequent extension shall not be for a period
of more than one year.
(3) Whenever the Secretary denies any ex-
port license under this subsection, the Sec-
retary shall specify in the notice to the
applicant of the denial of Such license
that the license was denied under the
authority contained in this subsection, and
the reasons for such denial, with reference to
the criteria set forth in subsection (b) of
this section. The Secretary shall also include
in such notice what, if any, modifications in
or restrictions on the goods or technology
for which the license was sought would allow
such export to be compatible with controls
implemented under this section, or the Sec-
retary shall indicate in such notice which
officers and employees of the Department of
Commerce who are fam!liar with the appli-
cation will be made reasonably available to
the applicant for consultation with regard
to such modifications or restrictions, if ap-
propriate.
(4) In accordance with the provisions of
section 10 of this Act, the Secretary of State
shall have the right to review any export
license application under this section which
the Secretary of State requests to review.
(b) CRITERIA.-When imposing, expanding,
or extending export controls under this sec-
tion, the President shall consider-
(1) the probability that such controls will
achieve the intended foreign policy purpose,
in light of other factors, including the
availability from other countries of the
goods or technology proposed for such-,con-
trols;
(2) the compatibility of the proposed con-
trols with the foreign policy objectives of
the United States, including the effort to
counter international terrorism, and with
overall United States policy toward the
country which is the proposed target of the
controls;
(3) the reaction of other countries to the
imposition or expansion of such export con-
trols by the United States;
(4) the likely effects of the proposed con-
trols on the export performance of the
United States, on the competitive position of
the United States in the international econ-
omy, on the international reputation of the
United States as a supplier of goods and
technology, and on individual United States
companies and their employees and commu-
nities, including the effects of the controls
on existing contracts;
(5) the ability of the United States to en-
force the proposed controls effectively; and
(6) the foreign policy consequences of
not imposing controls.
(c) CONSULTATION WITH INDUSTRY.-The
Secretary, before imposing. export controls
under this section, shall consult with such
affected United States industries as the Sec-
retary considers appropriate, with respect to
the criteria set forth in paragraphs (1) and
(4) of subsection (b) and such other mat-
ters as the Secretary considers appropriate.
(d) ALTERNATIVE MEANS-Before resorting
to the imposition of export controls under
this section, the President shall determine
that reasonable efforts have been made to
achieve the purposes of the controls through
negotiations or other alternative means.
(e) NOTIFICATION TO CONGRESS.-The Presi-
dent in every possible instance shall consult
with the Congress before imposing any ex-
port control under this section. Except as
provided in section 7(g) (3) of this Act,
whenever the President imposes, expands, or
extends export controls under this section,
the President shall immediately notify the
Congress of such action and shall submit
with such notification a report specifying-
(1) the conclusions of the President with
respect to each of the criteria set forth in
subsection (b); and
(2) the nature and results of any alter-
native means attempted under subsection
(d), or the reasons for imposing, extending,
or expanding the control without attempt-
i
ng any such alternative means.
Such report shall also indicate how such
September 27, 1979
(f) EXCLUSION FOR MEDICINE AND MEDICAL
SuPPI.IES.-This section does not authorize
export controls on medicine or medical sup-
plies. It is the intent of Congress that the
President not impose export controls under
this section on any goods or techr_ology if he
determines that the principal effect of the
export of such goods or technology wouI: be
to help meet basic human needs. This sub-
sect'cn shall not be construed to prohibit
the President from imposing restrictions on
the export of medicine or medical supplies
under the International Emergency Eco-
nomic Powers Act. This subsection shall not
apply to any export control on medicine or
medical supplies which is in effect on the
effective date of this Act.
(g) FOREIGN AVAILABILITY: In applying ex-
port controls under this section, the Presi-
dent shall take all feasible steps to initiate
and conclude negotiations with appropriate.
foreign governments for the purpose of se-
curing the cooperation of such foreign gov-
ernments in controlling the export to coun-
tries and consignees to which the United
States export controls apply of any goods or
technology comparable to goods or technol-
ogy controlled under this section.
(h) INTERNATIONAL OBLIGATIONS-The
provisions of subsections (b), (c), (d), (f),
and (g) shall not apply in any case in which
the President exercises the authority con-
tained in this section to impose export con-
trols, or to approve or deny export license
applications, in order to fulfill obligations
of the United States pursuant to treaties to
which the United States is a party or pur-
suant to other international agreements.
(1) COUNTRIES SUPPORTING INTERNATIONAL
TERRORISM.-The Secretary and the Secre-
tary of State shall notify the Committee on
Foreign Affairs of the House of Representa-
tives and the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate before
any license is approved for the export of
goods or technology valued at more than
$7,000,000 to any country concerning which
the Secretary of State has made the follow-
ing determinations:
(1) Such country has repeatedly provided
support for acts of international terrorism.
(2) Such exports would make a significant
contribution to the military potential of
such country, including its military logis-
tics capability, or would enhance the ability
of such country. to support acts of interna-
tional terrorism.
(j) CRIME CONTROL INSTRUMENTS.-(1)
Crime control and detection instruments
and equipment shall be approved for ex-
port by the Secretary only pursuant to a
validated export license.
(2) The provisions of this subsection shall
not apply with respect to exports to coun-
tries which are members of the North Atlan-
tic Treaty Organization or to Japan, Aus-
tralia or New Zealand, or to such other coun-
tries as the President shall designate con-
sistent with the purposes of this subsection
and section 502B of the Foreign Assistance
Act of 1961.
(k) CONTROL LIST.-The Secretary shall
establish and maintain, as part of the com-
'modity control list, a list of any goods or,
technology subject to export controls under
this section, and the countries to which such
controls apply. Such goods or technology
shall be clearly identified as subject to con-
trols under this section. Such list shall con-'
sist of goods and technology identified by
the Secretary of State, with the concurrence
of the Secretary. If the Secretary and the
Secretary of State are unable to agree on
policy of the United States or will further the list, the matter shall be referred to the
its declared international obligations. To the President. Such list shall be reviewed not
extent necessary to further the effectiveness less frequently than every three years in the
of such export control, portions of such re- case of controls maintained cooperatively
port may be submitted on a classified basis, with other countries, and annually in the case
and shall be subject to the provisions of of all other controls, for the purpose of mak-
section 12(c) of this Act, ing such revisions as are-necessary in order
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to carry out this section. During the course
of such review, an assessment shall be made
periodically of the availability from sources
outside the United States, or any of its ter-
ritories or possessions, of goods and technol-
ogy comparable to those controlled for ex-
port from the United States under this
section.
SHORT SUPPLY CONTROLS
SEC. 7. (a) AUTHORITY.-(1) In order to
carry out the policy set forth in section 3
(2) (C) of this Act, the President may pro-
hibit or curtail the export of any goods sub-
ject to the jurisdiction of the United States
or exported by any person subject to the
jurisdiction of the United States. In curtail-
ing exports to carry out the policy set forth
in section 3(2) (C) of this Act, the President
shall allocate a portion of export licenses on
the basis of factors other than a prior history
of exportation. Such factors shall include the
extent to which a country engages in equi-
table trade practices with respect to United
States goods and treats the United States
equitably in times of short supply.
(2) Upon imposing quantitative restric-
tions on exports of any goods to carry out
the policy set forth in section 3(2) (C) of
this Act, the Secretary shall include in a
notice published in the Federal Register with
respect to such restrictions an invitation to
all interested parties to submit written com-
ments within 15 days from the date of pub-
lication on the impact of such restrictions
and the method of licensing used to imple-
ment them.
(3) In imposing export controls under
this section, the President's authority shall
include, but not be limited to, the imposi-
tion of export license fees.
(b) MONITORING.-(1) In order to carry
out the policy set forth in section 3(2) (C)
of this Act, the Secretary shall monitor ex-
ports, and contracts for exports, of any good
(other than a commodity which is subject
to the reporting requirements of section
812 of the Agricultural Act of 1970) when
the volume of such exports in relation to
domestic supply contributes, or may con-
tribute, to an increase in domestic prices or
a domestic shortage, and such price increase
or shortage has, or may have, a serious ad-
verse impact on the economy or any sector
thereof. Any such monitoring shall com-
mence at a time adequate to assure that
the monitoring will result in a data base
sufficient to enable policies to be developed,
in accordance with section 3(2) (C) of this
Act, to mitigate a short supply situation or
serious inflationary price rise or. if export
controls are needed. to permit imposition of
such controls in a timely manner. Informa-
tion which the Secretary' requires to be
furnished in effecting such monitoring
shall be confidential, except as provided in
paragraph (2) of this subsection.
(2) The results of such monitoring shall,
to the extent practicable, be aggregated and
included in weekly reports setting forth.
with respect to each item monitored, actual
and anticipated exports, the destination by
contrary, and the domestic and worldwide
price, supply, and demand. Such reports
may be made monthly if the Secretary deter-
mines that there is insufficient information
to justify weekly reports.
(3) The Secretary shall consult with the
Secretary of Energy to determine whether
monitoring or export controls under this
section are warranted with respect to ex-
ports of facilities, machinery, or equipment
normally and principally used, or intended
to be used, in the production, conversion, or
transportation of fuels and energy (except
nuclear energy), including, but not limited
to, drilling rigs, platforms, and equipment;
petroleum refineries, natural gas processing,
liquefaction, and gasification plants; facili-
ties for production of synthetic natural gas
or synthetic crude oil; oil and gas pipelines,
pumping stations, and associated equipment;
and vesse,ls for transporting oil, gas, coal, and
other fuels.
(C) PETITIONS FOR MONITORING OR CON-
TROLS.-(l) (A) Any entity, including a
trade association, firm, or certified or recog-
nized union or group of workers, which is
representative of an industry or a substan-
tial segment of an industry which processes
metallic materials capable of being recycled
with respect to which an increase in domes-
tic prices o, a domestic shortage, either of
which results from increased exports, has
or may have a significant adverse effect on
the national economy or any sector thereof,
may transmit a written petition to the Sec-
retary requesting the monitoring of exports,
or the imposition of export controls, or
both, with respect to such material, in order
to carry out the policy set forth in section
3(2) (C) of this Act.
(B) Each petition shall be in such form as
the Secretary shall prescribe and shall con-
tain information in support of the action re-
quested. The petition shall include any in-
formation reasonably available to the peti-
tioner indicating (i) that there has been a
significant increase, in relation to a specific
period of time, in exports of such material
in relation to domestic supply, and (11) that
there has been a significant increase in the
price of such material or a domestic shortage
of such material under circumstances indi-
cating the price increase or domestic short-
age may be related to exports.
(2) Within 15 days after receipt of any
petition described in paragraph (1), the
Secretary shall publish a notice in the Fed-
eral Register. The notice shall (A) include
the name of the material which is the sub-
ject of the petition, (B) Include the Schedule
B number of the material as set forth in the
Statistical Classification of Domestic and
Foreign Commodities Exported from the
United States, (C) . Indicate whether the
petitioner is requesting that controls or
monitoring, or both, be imposed with respect
to the exportation of such material, and (D)
provide that interested persons shall have a
period of 30 days commencing with the date
of publication of such notice to submit to
the Secretary written data, views, or argu-
ments, with or without opportunity for oral
presentation, with respect to the matter
involved. At the request of the petitioner or
any other entity described in paragraph (1)
(A) with respect to the material which is
the subject of the petition, or at the request
of any entity representative of producers or
exporters of such material, the Secretary
shall conduct public hearings with respect
to the subject of the petition, in which case
the 30-day period may be extended to 45
days.
(3) Within 45 days after the end of the
30- or 45-day period described in paragraph
(2), as the case may be, the Secretary shall-
(A) determine whether to impose moni-
toring or controls, or both, on the export of
such material, in order to carry out the policy
set forth in section 3(2) (C) of this Act; and
(B) publish in the Federal Register a de-
tailed statement of the reasons for such
determination.
(4) Within 15, days after making a deter-
mination under paragraph (3) to impose
monitoring or controls on the export of a
material, the Secretary shall publish in the
Federal Register proposed regulations with
respect to such monitoring or controls. With-
in 30 days following the publication of such
proposed regulations, and after considering
any public comments thereon, the Secretary
shall publish and implement final regula-
tions with respect to such monitoring or
controls.
(5) For purposes of publishing notices in
the Federal Register and scheduling public
hearings pursuant to this subsection, the
H 8671
Secretary may consolidate petitions, and re-
sponses thereto, which involve the same or
related materials. '
(6) If a petition with respect to a particu-
lar material or group of materials has been
considered in accordance with all the proce-
dures prescribed in this subsection, the Sec-
retary may determine, in the absence o'
significantly changed circumstances, that any
other petition with respect to the same
material or group of materials which is filed
within six months after consideration of the
prior petition has been completed does not
merit complete consideration under this sub-
section.
(7) The procedures and time limits set
forth in this subsection with respect to a
petition filed under this subsection shall take
precedence over any review undertaken at
the initiative of the Secretary with respect
to the same subject as that of the petition.
(8) The Secretary may impose monitoring
or controls on a temporary basis after a pe-
tition is filed under paragraph (1) (A) but
before the Secretary makes a determination
under paragraph (3) if the Secretafy con-
siders such action tb be necessary to carry out
the policy set forth in section 3(2) (C) of
this Act.
(9) The authority under this subsection
shall not be construed to affect the author-
ity of the Secretary under any other provi-
sion of this Act.
(10) Nothing contained in this subsection.
shall be construed to preclude submission on
a confidential basis to the Secretary of in-
formation relevant to a decision to impose or
remove monitoring or controls under the
authority of this Act, or to preclude consid-
eration of such information by the Secretary
in reaching decisions required under this
subsection. The provisions of this paragraph
shall not be construed to affect the applica-
bility of section 552(b) of title 5, United
States Code.
(d) DOMESTICALLY PRODUCED CRUDE OIL.-
(1) Notwithstanding any other provision of
this Act and notwithstanding subsection
(u) of section 28 of the Mineral Leasing Act
of 1920 (30 U.S.C. 185), no domestically pro-
duced crude oil transported by pipeline over
right-of-way granted pursuant to section 208
of the Trans-Alaska Pipeline Authorization
Act (43 U.S.C. 1652) (except any such crude
oil which (A) is exported to an adjacent for-
eign country to be refined and consumed
therein in exchange for the same quantity
of crude oil being exported from that coun-
try to the United States; such exchange
must result through convenience or increased
efficiency of transportation in lower prices
-for consumers of petroleum products in the
United States as described in paragraph
(2) (A) (ii) of this subsection, or (B) is tem-
porarily exported for convenience or in-
creased efficiency of transportation across
parts of an adjacent foreign country and
reenters the United States) may be exported
from the United States, or any of its ter-
ritories and possessions, unless the require-
ments of paragraph (2) of this subsection
are met.
(2) Crude oil subject to the prohibition
contained in paragraph (1) may be exported
only if-
(A) the President makes and publishes ex-
press findings that exports of such crude
oil, including exchanges-
(1) will not diminish the total quantity
or quality of petroleum refined within,
stored within, or legally committed to be
transported to and sold within the United
States;
(ii) will, within three months following
the initiation of such exports or exchanges,
result in (I) acquisition costs to the re-
finers which purchase the imported crude
oil being lower than the acquisition costs
such refiners would have to pay for the
domestically produced oil in,.the absence of
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such an export or exchange, and (II) not
less than 75 percent of such savings in
costs being reflected in wholesale and retail
prices of products refined from such im-
ported crude oil;
(iii) will be made only pursuant to con-
tracts which may be terminated if the
crude oil supplies of the United States are
interrupted, threatened, or diminished;
(iv) are clearly necessary to protect the
national interest; and
(v) are in accordance with provisions of
this Act; and
(B) the President reports such findings
to the Congress and the Congress, within
60 days thereafter, agrees to a concurrent
resolution approving such exports on the
basis of the findings.
(3) Notwithstanding any other provi-
sion of this section or any other provision
of law, including subsection (u) of section
28 of the Mineral Leasing Act of 1920. the
President may export oil to any country
pursuant to a bilateral international oil
supply agreement entered into by the United
States with such nation before June 25,
1979, or to any country pursuant to the
International Emergency Oil Sharing Plan
of the International Energy Agency.
(e) REnrED PETROLEUM PRODUCTS-(1)
No refined petroleum product may be ex-
ported except pursuant to an export li-
cense specifically authorizing such export.
Not later than five days after an applica-
tion for a license to export any refined
petroleum product or residual fuel oil is
received, the Secretary shall notify the Con-
gress of such application, together with
the name of the exporter, the destination
of the proposed export, and the amount and
price of the proposed export. Such notifica-
tion shall be made to the chairman of the
Committee on Foreign Affairs of the House
of Representatives and the chairman of
the Committee on Banking, Housing, and
Urban Affairs of the Senate.
(2) The Secretary may not grant such li-
cense during the 30-day period beginning on
the date on which notification to the Con-
gress under paragraph (1) is received, unless
the President certifies in writing to the
Speaker of the House of Representatives and
the President pro tempore of the Senate that
the proposed export is vital to the national
interest and that a delay in issuing the li-
cense would adversely affect that interest.
(3) This subsection shall not apply to (A)
any export license application for exports to
a country with respect to which historical
export quotas established by the Secretary on
the basis of past trading relationships apply,
or (B) any license application for exports to
a country if exports under the license would
not result in more than 250,000 barrels of
refined petroleum products being exported
from the United States to such country in
any fiscal year.
(4) For purposes of this subsection, "re-
fined petroleum product" means gasoline,
kerosene, distillates, propane or butane gas,
diesel fuel, and residual fuel oil refined with-
in the United States or entered for consump-
tion within the United States.
(5) The Secretary may extend anytime
period prescribed in section 10 of this Act
to the extent necessary to take into account
delays in action by the Secretary on a license
application on account of the provisions of
this subsection.
(f) CERTAIN PETROLEUM PRODUCTS.-Pe.
troleum products refined in United States
Foreign Trade Zones, or in the United States
Territory of Guam, from foreign crude oil
shall be excluded from any quantitative re-
strictions imposed under this section except
that, if the Secretary finds that a product is
in short supply, the Secretary may issue such
'regulations as may be necessary to limit
exports.
CONGRESS LONAIL RECORD -HOUSE September. 27, 1979
(g) AGRICULTURAL CoMMoarrms.-(1) The
authority conferred by this section shall not
be exercised with respect to any agricultural
commodity, including fats and oils or animal
hides or skins, without the approval of the
Secretary of 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
the Secretary of Agriculture 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
carry out the policies set forth in subpara-
graph (A) or (B) of paragraph (2) of section
3 of this Act. The Secretary of Agriculture
shall, by exercising the authorities which the
Secretary of Agriculture has under other ap-
plicable provisions of law, collect data with
respect to export sales of animal hides and
skins.
(2) Upon approval of the Secretary, in
consultation with the Secretary of Agricul-
ture, agricultural commodities purchased by
or for use in a foreign country may remain
in the United States for export at a later
date free from any quantitative limitations
on export which may be imposed to carry out
the policy set forth in section 3(2) (C) of this
Act subsequent to such approval. The Secre-
tary may not grant such approval unless the,
Secretary receives, adequate assurance and,
in conjunction with the Secretary of Agri-
culture, finds (A) that such commodities will
eventually be exported, (B) that neither the,
sale nor export thereof will result in an ex-
cessive drain of scarce materials and have a
serious domestic inflationary impact, (C)
that storage of such commodities in the
United States will not unduly limit the space
available for storage of domestically owned
commodities, and (D) that the purpose bf
such storage is to establish a reserve of such
commodities for later Use, not including re-
sale to or use by another country. The Secre-
tary may issue such regulations as may be
necessary to implement this paragraph.
(3) If the authority conferred by this sec-
tion or section 6. Is exercised to prohibit or
curtail the export of any agricultural com-
modity in order to carry out the policies set
forth in subparagraph (B) or (C) of para-
graph (2) of section 3 of this Act, the Presi-
dent shall immediately report such prohibi-
tion or curtailment to the Congress, setting
forth the reasons therefor in detail. If the
Congress, within 30 days after the date of its
receipt of such report, adopts a concurrent
resolution disapproving such prohibition or
'curtailment, then such prohibition or cur-
tailment shall cease to be effective with the
adoption of such resolution. In the compu-
tation of such 30-day period, there shall be
excluded the days on which either House is
not in session because of an adjournment of
more than 3 days to a day certain or because
of an adjournment of the Congress sine die.
(h) BARTER AGREEMENTS-(I) The exporta-
tion pursuant to a barter agreement of any
goods which may lawfully be exported from
the United States, for any goods which may
lawfully be imported into the United States,
may be exempted, in accordance with para-
graph (2) of this subsection, from any quan-
titative limitation on exports (other than
any reporting requirement) imposed to carry
out the policy set forth in section 3(2) (C)
of this Act.
(2) The Secretary shall grant an exemption
under paragraph (1) if the Secretary finds,
after consultation with the appropriate de-
partment or agency of the United States,
that-
(A) for the period during which the bar-
ter agreement is to be performed-
(1) the average annual quantity of the
goods to be exported pursuant to the barter
agreement will not be required to satisfy the
average amount of such goods estimated to
be required annually by the domestic econ-
omy and will be surplus thereto; and
(ii) the average annual quantity of the
goods to be imported will be less than the
average amount of such goods estimated to
be required annually to supplement domestic
production; and
(B) the parties to such barter agreement
have demonstrated adequately that they in-
tend, and have the capacity, to perform such
barter agreement.
(3) For purposes of this subsection, the
term "barter agreement" means any agree- ,
ment which is made for the exchange, with-
out monetary consideration, of any goods
produced in the United States for any goods
produced outside of the United States.
(4) This subsection shall apply only with
respect to barter agreements entered into
after the effective date of this Act.
(1) UNPROCESSED RED CEDAR.-(1) The Sec-
retary shall require a validated license, under
the authority contained in subsection (a) of
this section, for the export of unprocessed
western red cedar (Thuja plicate) logs, har-
vested from State or Federal lands. The Sec-
retary shall impose quantitative restrictions
upon the export of unprocessed western red
cedar logs during the 3-year period begin-
ning on the effective date of this Act as
follows:
(A) Not more than thirty million board
feet Scribner of such logs may be exported
during the first year of such 8-year period.
(B) Not more then. fifteen million board
feet Scribner of such logs may be exported
during the second year of such period.
(C) Not more than five million board feet
Scribner of such logs may be exported during
the third year of such period.
After the end of such 3-year period, no un-
processed western red cedar logs may be ex-
ported from the United States.
(2) The Secretary shall allocate export
licenses to exporters pursuant to this sub-
section on the basis of a prior history of ex-
portation by such exporters and such other
factors as the Secretary considers necessary
and appropriate to minimize any hardship
to the producers of western red cedar and
to further the foreign policy of the United
States.
(3) Unprocessed western red cedar logs
shall not be considered to be an agricultural
commodity for purposes of subsection (g)
of this section.
(4) As used in this subsection, the term
"unprocessed western red cedar" means red
cedar timber which has not been processed
into-
(A) lumber without wane;
(B) chips, pulp, and pulp products;
(C) veneer and plywood;
(D) poles, posts, or pilings cut or treated
with preservative for use as such and not
intended to be further processed; or
(E) shakes and shingles.
(j) EXPORT Or HORSES-(1) Notwithstand-
ing any other provision of this Act, no horse
may be exported by am from the United
States, or any of its territories and posses-
sions, unless such horse is part of a con-
signment of horses with respect to which a
waiver has been granted u n d e r paragraph (2 )
of this subsection.
(2) The Secretary, in consultation with the
Secretary of Agriculture, may issue regula-
tions providing for the granting of waivers
permitting the export by sea of a specified
consignment of horses, if the Secretary, in
consultation with the Secretary of Agricul-
ture, determines that no horse in that con-
signment is being exported for purposes of
slaughter.
FOREIGN BOYCOTTS
SEC. 8. (a) PROHIBITIONS AND ExcEPTroNs.-
(1) For the purpose of implementing the
policies set forth in subparagraph (A) or
(B) of paragraph (5) of section 3 of this
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Act, the President shall Issue regulations
prohibiting any United States person, with
respect to his activities In the interstate or
foreign oommerce of the United States, from
taking or knowingly agreeing to take any of
the following actions with intent to com-
ply with, further, or support .any boycott
fostered or irapo ad by a foreign country
against a country which is friendly to the
United States and which is not Itself the ob-
ject of any form of boycott pursuant to
United States law or regulation:
(A) Refusing, or requiring any other per-
son to refuse, to do business with or in the
boycotted country, with any business con-
cern organized under the laws of the boy-
cotted country, with any national or resident
of the boycotted country, or with any other
person, pursuant to an agreement with, a
requirement of, or a request from or on be-
half of the boycotting country. The mere ab-
sence of a business relatiohship with or in
the boycotted country with any business
concern organized under the laws of the boy-
cotted country, with any national or resident
of the boycotted country, or with any other
person, does not indicate the existence of the
intent required to establish a violation of
regulations issued to carry out this subpar-
agraph.
(B) Refusing, or requiring any other per-
son to refuse, to employ or otherwise dis-?
criminating against any United States per-
son on the basis of race, religion, sex, or na-
tional origin of that person or of any owner,
officer, director or employee of such person.
(C) Furnishing information with respect
to the race, religion, sex, or national origin
of any United States person or of any owner,
officer, director, or employee of such person.
(D) Furnishing information about whether
any person has, has had, or proposes to have
any business relationship (Including a rela-
tionship by way of sale, purchase, legal or
commercial representation, shipping or other
transport, insurance, investment, or supply)
with or In the boycotted country, with any
business concern organized under the laws
of the boycotted country, with any national
or resident of the boycotted country, or with
any other person which is known or believed
to be restricted from having any business
relationship with or in the boycotting coun-
try. Nothing in this paragraph shall pro-
hibit the furnishing of normal business In-
formation in a commercial context as de-
fined by the Secretary.
(E) Furnishing Information about whether
any person is a member of, has made contri-
butions to, or is otherwise associated with or
involved in the activities of any charitable
or fraternal organization which supports the
boycotted country.
(F) Paying,-honoring, confirming, or other-
wise implementing a letter of credit which
contains.any condition or requirement com-
pliance with which is prohibited by regula-
tions issued pursuant to this paragraph, and
no United States parson shall, as a result of
the application of this paragraph, be obli-
gated to pay or otherwic;a honor or implement
such letter of credit.
.(2) Regulations i ced pursuant to para-
graph (1) shall provide exceptions for-
(A) complying or agreeing to comply with
requirements (i) prohibiting the imports of
goods or services from the ?boycotted country
or goods produced or services provided by any
business concern organized under the laws
of the boycotted country or by nationals or
residents of the boycotted country, or (ii)
prohibiting the shipment of goads to the boy-
cotting country on a carrier of the boycotted
country, or by a route other than that pre-
scribed by the boycotting Country or the re-
cipient of the shipment;
(B) complying or agreeing to comply with
import and shipping document requirements
with respect to the country of origin, the
name of the carrier and route of shipment,
the name of the supplier of, the shipment or
the name of the provider of other services.
except that no information knowingly fur-
nished or conveyed in response to such re-
quirements may be stated in negative, black-
listing, or similar exclusionary terms, other
than with respect to carriers or route of ship-
ment as may be permitted by such regula-
tions in order to comply with precautionary
requirements protecting against war risks
and. confiscation;.
(C) complying or agreeing-to comply in the
normal course of business with the unilateral
and specific selection by a boycotting coun-
try, or national or resident thereof, of car-
riers, insurers, suppliers of services to be per-
formed within the boycotting country or
specific goods which, in the normal course
of business, are identifiable by source when
imported into the boycotting country;
(D) complying or agreeing to comply with
export requirements of the boycotting coun-
try relating to shipments or transshipments
of exports to the boycotted country, to any
business concern of or organized under the
laws of the boycotted country, or to any na-
tional or resident of the boycotted country;
(E) compliance by an individual or agree-
ment by an individual to comply with the
immigration or passport requirements of any
country with respect to such individual or
any member of such individual's family or
with requests for information regarding re-
quirements of employment of such indivi-
dual within the boycotting country; and
(F) compliance by a United States person
resident in a foreign country or agreement
by such person to comply with the laws of
that country with respect to his activities
exclusively therein, and such regulations
may contain exceptions for such resident
complying with the laws or regulations of
that foreign country governing imports Into
such country of trademarked, trade named,
or similarly specifically Identifiable products,
or components of products for his own use,
including the performance of contractual
services within that country, as may be de-
fined by such regulations.
(3) Regulations issued pursuant to para-
graphs (2) (C) and (2) (F) shall not provide
exceptions from paragraphs (1) (B) and
(1) (C).
(4) Nothing in this subsection may be
construed to supersede or limit the opera-
tion of the antitrust or civil rights laws of
the United States.
(5) This section shall apply to any trans-
action or activity undertaken, by or through
a United States person or any other per-
son, with intent to evade the provisions
of this section as implemented by the regu-
lations issued pursuant to this subsection,
and such regulations shall expressly provide
that the exception set forth in paragraph
(2) shall not permit activities or agreements
(expressed or implied by a course of conduct,
including a pattern of responses) otherwise
prohibited, which are not within the intent
of such exceptions.
(b) FOREIGN POLICY CoNTRoLs.-(1) In
addition to the regulations Issued pursuant
to subsection (a) of this section, regulations
issued under section 6 of this Act shall im-
plement the policies set forth In section 3 (5).
(2) Such regulations shall require that
any United States person receiving a request
for the furnishing of informaticn, the enter-
ing into or .implementing of agreements, or
the taking of any other action referred to
In section 3(5) shall 'report that fact to
the Secretary, together with.such other in-
formation concerning such request as the
Secretary may require for such action as
the Secretary considers appropriate for car-
rying out the policies'of that section. Such
person shall also report to the Secretary
whether such person Intends to comply and
whether such person has complied with such
request. Any report filed pursuant to this
paragraph shall be made available promptly
0
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for public inspection and copying, except
that information regarding the' quantity,
description, and value of any goods or tech-
nology to which such report relates may
be kept confidential if the Secretary dater-
mines that disclosure thereof would piece
the United States person involved at a com-
petitive disadvantage. The Secretary shall
periodically transmit summaries of the infor-
mation contained in such reports to the
Secretary of State for such action as the
Secretary of State, in consultation with the
Secretary, considers appropriate for carry-
ing out the policies set forth In section 3(5)
of this Act.
(c) PREEMPTION.-The provisions of this
section and the regulations issued pursuant
thereto shall preempt any law, rule, or regu-
listion of any of the several States or the Dis-
trict of Columbia, or any of the territories
or possessions of the United States, or of any
governmental subdivision thereof, which law,
rule, or regulation pertains to participation
in, compliance with, implementation of, or
the furnishing of Information regarding re-
strictive trade practices or boycotts fostered
or imposed by foreign countries against other
countries.
PROCEDURES FOR HARDSHIP RELIEF FROM EXPORT
CONTROLS
SEC. 9. (a) FILING OF PETITIONS: Any per-
son who, in such person's domestic manufac-
turing process or other domestic business
operation, utilizes a product produced abroad
In whole or in part from a good historically
obtained from the United States but which
has been made subject to export controls, or
any person who historically has exported
such a good, may transmit a petition of
hardship to the Secretary requesting an ex-
emption from such controls in order to al-
leviate any unique hardship resulting from
the imposition of such controls. A petition
under this section shall be in such form as
the Secretary shall prescribe and shall con-
tain information demonstrating the need for
the relief requested.
(b) DECISION OF THE SECRETARY: loot later
than 30 days after receipt of any petition
under subsection (a), the Secretary shall
transmit a written decision to the petitioner
granting or denying the. requested relief.
Such decision shall contain a statement set-
ting forth the Secretary's basis for the grant
or denial. Any exemption granted may be
subject to such conditions as the Secretarzr
considers appropriate.
(c) FACTORS To BE CONSIDERED.-For pur-
poses of this section, the Secretary's decision
with respect to the grant or denial of relief
from unique hardship resulting directly or
indirectly from the imposition of export con-
trols shall reflect the Secretary's considarn-
tion of factors such as the following:
(1) Whether denial would cause a unique
hardship to the petitioner which can be al-
leviated only by granting an exception to the
applicable regulations. In determining whe-
ther relief shall be granted, the Secretary
.shall take into account-
(A) ownership of material for which there
is no practicable domestic market by virtue
of the location or nature of the material;
(B) potential serious financial loss to the
applicant if not granted an exception;
(C) inability to obtain, except throughim-
port, an item essential for domestic use
which is produced abroad from the good
under control;
(D) the extent to which denial would con-
flict, to the particular detriment of the ap-
plicant, with other national policies includ-
ing those reflected in any international
agreement to which the United States is a
party;
(E) possible adverse effects on the economy
(including unemployment) in any locality
or region of the United States; and
(F) other relevant factors, including the
applicant's lack.of an exporting history dur-
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ing any base period that may be established
with respect to export quotas for the partic-
ular good.
The effect a finding in favor of the appli-
cant would have. on attainment of the basic
objectives of the short supply control pro-
gram.
In all cases, the desire to sell at higher
prices and thereby obtain greater profits shall
not be considered as evidence of a unique
hardship, nor will circumstances where the
hardship is due to imprudent acts or failure
to act on the part of the petitioner.
PROCEDURES FOR PROCESSING EXPORT LICENSE
APPLICATIONS
SEC. 10. (a) PRIMARY RESPONSIBILITY OF
THE SECRETARY.-(l) All export license ap-
plications required under this Act shall be
submitted by the applicant to the Secretary.
All determinations with respect to any such
application shall be made by the Secretary,
subject to the procedures provided in this
section.
(2) It is the intent of the Congress that a
determination with respect to any export
license application be made to the maximum
extent possible by the Secretary without re-
ferral of such application to any other de-
partment or agency of the Government.
(3) To the extent necessary, the Secretary
shall seek information and recommendations
from the Government departments and
agencies concerned with aspects of United
States domestic and foreign policies and
operations having an important bearing on
exports. Such departments and agencies shall
cooperate fully in rendering such informa-
tion and recommendations.
(b) INITIAL SCREENING.-Within ten days
after the date on which any export license
application is submitted pursuant to sub-
section (a) (1), the Secretary shall-
(1) send the applicant an acknowledgment
of the receipt of the application and the date
of the receipt;
(2) submit to the applicant a written de-
scription of the procedures required by this
section, the responsibilities of the Secretary
and of other departments and agencies with
respect to the application, and the rights of
the applicant;
(3) return the application without action
if the application is improperly completed
or if additional information is required, with
sufficient information to permit the appli-
cation to be properly resubmitted, in which
case if such application is resubmitted, it
shall be treated as a new application for the
purpose of calculating the time periods
prescribed in this section;
(4) determine whether it is necessary to
refer the application to any other depart-
ment or agency and, if such referral is deter-
mined to be necessary, inform the applicant
of any such department or agency to which
the application will be referred; and
(5) determine whether it is necessary to
submit the application to a multilateral re-
view process, pursuant to a multilateral
agreement, formal or informal, to which the
United States is a party and, if' so, inform
the. applicant of this requirement.
(c) ACTION ON CERTAIN APPLICATIONS.-In
each case in which the Secretary determines
that it is not necessary to refer an applica-
tion to any other department or agency for
its information and recommendations, a
license shall be formally issued or denied
within 90 days after a properly completed
application has been submitted pursuant
to this section.
(d) REFERRAL TO OTHER DEPARTMENTS AND
AGENCIES-In each case in which the Secre-
tary determines that it is necessary,to refer
an application to any other department or
agency for its information and recommenda-
tions, the Secretary shall, within 30 days
after the submission of a properly completed
application-
CONGRESSIONAL RECORD-HOUSE September 27, 1979
(1) refer the application, together with all
necessary analysis and recommendations of
the Department of Commerce, concurrently
to all such departments or agencies; and
(2) if the applicant so requests, provide
the applicant with an opportunity to review
for accuracy and documentation to be re-
ferred to any such department or agency with
respect to such application for the purpose
of describing the export in question in order
to determine whether such documentation
accurately describes the proposed export.
(e) ACTION BY OTHER DEPARTMENTS AND
AGENCIES.-(1) Any department or agency to
which an application is referred pursuant to
subsection (d) shall submit to the Secretary,
within 30 days after its receipt of the appli-
cation, the information or recommendations
requested with respect to such application.
Except as provided in paragraph (2), any
such department or agency which does not
submit its recommendations within the time
period prescribed in the preceding sentence
shall be deemed by the Secretary to have no
objection to the approval of such application.
(2) If the head of any such department or
agency notifies the Secretary, before the ex-
piration of the time period provided in para-
graph (1) for submission of its recommenda-
tions that more time is required for review
by such department or agency, such depart-
ment or agency shall have an additional
30-day period to submit its recommendations
to the Secretary. If such department or
agency does not submit its recommendations
within the time period prescribed by the
preceding sentence, it shall be deemed by the
Secretary to have no objection to the ap-
prbval of such application.
(f) ACTION BY THE SECRETARY.-(l) Within
90 days after receipt of the recommendations
of other departments and agencies with re-
spect to a license application, as provided in
subsection (e), the Secretary shall formally
issue or deny the license. In deciding whether
to issue or deny a license, the Secretary shall
take into account any recommendation of a
department or agency with respect to the
application in question. In cases where the
Secretary receives conflicting recommenda-
tions, the Secretary shall, within the 90-day
period provided for in this subsection, take
such action as may be necessary to resolve
such conflicting recommendations.
(2) In cases where the Secretary receives
questions or negative considerations or rec-
ommendations from any other department or
agency with respect to- an application, the
Secretary shall, to the maximum extent con-
sistent with the national security and for-
eign policy of the United States, inform the
applicant of the specific questions raised
and any such negative consideration or rec-
ommendations, and shall accord the appli-
cant an opportunity, before the final deter-
mination with respect to the application is
made, to respond in writing to such ques-
tions, considerations, or recommendations.
(3) In cases where the Secretary has de-
termined that an application should be
denied, the applicant shall be informed in
writing, within five days after such deter-
mination is made, of the determination, of
the statutory basis for denial, the policies
set forth in section 3 of the Act which would
be furthered by denial, and, to the extent
consistent with the national security and
foreign policy of the United States, the
specific considerations which led to the
denial, and of the availability of appeal
procedures. In the event decisions on li-
cense applications are deferred inconsistent
with the provisions of this section, the
applicant shall be so informed in writing
within five days after such deferral.
(4) If the Secretary determines that a
particular application or set of applications
is of exceptional importance and complexity,
and that additional time is required for ne-
gotiations to modify the application or ap-
plications, the Secretary may extend any
time period prescribed in this section. The
Secretary shall notify the Congress and the
applicant of such extension and the reasons
therefor.
(g) Special Procedures for Secretary of
Defense.-(1) Notwithstanding any other
provision of this section, the Secretary of
Defense is authorized to review any pro-
posed export of any goods or technology to
any country to which exports are controlled
for national security purposes and, when-
ever the Secretary of Defense determines
that the export of.such goods or technology
will make a significant contribution, which
would prove detrimental to the national se-
curity of the United States, to the military
potential of any such country, to recommend
to the President that such export be
disapproved.
(2) Notwithstanding any other provision
of law, the Secretary of Defense shall deter-
mine in consultation with the Secretary,
and confirm in writing the types and
categories of transactions which should
be reviewed by the Secretary of De-
fense in order to make a determina-
tion referred to in paragraph (1). Whenever
a license or other authority is requested for
the export to any county to which exports
are controlled for national security pur-
poses of goods or technology within any
such type or category, the Secretary shall
notify the Secretary of Defense of such re-
quest, and the Secretary may not issue any
license or other authority pursuant to such
request before the expiration of the period
within which the President may disapprove
such export. The Secretary of Defense shall
carefully consider any notification sub-
mitted by the Secretary pursuant to this
paragraph and, not later than 30 days after
notification of the request, shall-
(A) recommend to the President that he
disapprove any request for the export of
the goods or technology involved to the
particular country if the Secretary of De-
fense determines that the export of such
goods or technology will make a significant
contribution, which would prove detrimental
to the national security of the United
States, to the military potential of such
country or any other country;
(B) notify the Secretary that he would
recommend approval subject to specified
conditions; or
(C) recommend to the Secretary that the
export of goods or technology be approved.
If the President notifies the Secretary,
within 30 days after receiving a recom-
mendation from the Secretary of Defense,
that he disapproves such export, no license
or other authority may be issued for the
export of such goods or technology to such
country.
(3) The Secretary shall approve or dis-
approve a license application, and issue or
deny a license, in accordance with the pro-
visions of this subsection, and, to the ex-
tent applicable, in accordance with the time
periods and procedures otherwise set forth
in this section.
(4) Whenever the President exercises his
authority under this subsection to modify
or overrule a recommendation made by the
Secretary of Defense or exercises his au-
thority to modify or overrule any recom-
mendation made by the Secretary of De-
fense under subsection (c) or (d) of sec-
tion 5 of this Act with respect to the list
of goods and technologies controlled for
national security purposes, the President
shall promptly transmit to the Congress a
statement indicating his decision, together
with the recommendation of the Secretary
of Defense.
(h) MULTILATERAL CONTRoLs: In any case
in which an application, which has been
finally approved, under subsection (c), (f),
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unless the Secretary determines that the
withholding thereof is contrary to the na-
tional interest. Information obtained under
this Act after June 30, 1980, may be withheld
only to the extent permitted by statute, ex-
oept that information obtained for the pur-
pose of consideration of, or concerning, li-
cense applications under this Act shall be
withheld from public disclosure unless the
release of such information is determined by
the Secretary to be in the national interest.
Enactment of this subsection shall not affect
any judicial proceeding commenced under
section 552 of title 5, United States Code,
to obtain access to boycott reports submitted
prior to October 31, 1976, which was pending
on May 15, 1979; but such proceeding shall
be continued as if this Act had not been
enacted.
(2) Nothing in this Act shall be construed
as authorizing the withholding of informa-
tion from the Congress, and all information
obtained at any time under this Act or pre-
vious Acts regarding the control,of exports,
including any report or license application
required under this Act, shall be made availa-
ble upon request to any committee or sub-
committee of Congress of appropriate juris-
diction. No such committee or subcommittee
shall disclose any information obtained under
this Act or previous Acts regarding the con-
trol of exports which is submitted on a con-
fidential basis unless the full committee de-
termines that the withholding thereof is con-
trary to the national interest.
(d) REPORTING REQUIREMENTS.-In the ad-
ministration of this Act, reporting require-
ments shall be so designed as to reduce the
cost of reporting, recordkeeping, and export
documentation required under this Act to
the extent feasible consistent with effective
enforcement and compilation of useful trade
statistics. Reporting, recordkeeping, and ex-
port documentation requirements shall be
periodically reviewed and revised in the light
of developments in the field of information
technology.
(e) SIMPLIFICATION OF REGULATIONS.-The
Secretary, in consultation with appropriate
United States Government departments and
agencies and with appropriate technical ad-
visory committees established under section
5(h), shall review the regulations issued un-
der this Act and the commodity control list
in order to determine how compliance with
the provisions of this Act can be facilitated
by simplifying such regulations, by simpli-
fying or clarifying such list, or by any other
means.
EXEMPTION FROM CERTAIN PROVISIONS RELATING
TO ADMINISTRATIVE PROCEDURE AND JUDICIAL
REVIEW
SEC. 13. (a) ExEMPTIoN.-Except as pro-
vided in section 11(c) (2), the functions ex-
ercised under this Act are excluded from the
operation of sections 551, 553 through 559,
and 701 through 706 of title 5, United States
Code.
(b) PUBLIC PARTICIPATION.-It is the intent
Of the Congress that, to the extent practi-
cable, all regulations imposing controls on
exports under this Act be issued in proposed
form with meaningful opportunity for public
comment before taking effect. In cases where
a regulation imposing controls under this Act
is issued with immediate effect, it is the in-
tent of the Congress that meaningful oppor-
tunity for public comment also be provided
and that the regulation be reissued in final
form after public comments have been fully
considered.
ANNUAL REPORT
SEC. 14. (a) CONTENTS.-Not later than De-
cember 31 of each year, the Secretary shall
submit to the Congress a report on the ad-
ministration of this Act during the preceding
fiscal year. All agencies shall cooperate fully
with the Secretary in providing information
for such report. Such report shall include de-
tailed information with respect to-
CONGRESSIONAL RECORD-HOUSE September 27, 1979
(1) the implementation of the policies set
forth in section 3;
(2) general licensing activities under sec-
tions 5, 6, and 7, and any changes in the ex-
ercise of the authorities contained in sec-
tions 5(a), 6(a), and 7(a);
(3) the results of the review of United
States policy toward individual countries
pursuant to section 5 (b) ;
(4) the results, in as much'detail as may
be included consistent with the national
security and the need to maintain the con-
fidentiality of proprietary information, of
the actions, including reviews and revisions
of export controls maintained for national
security purposes required by section
5(c)(3);
(5) actions taken to carry out section
5(d);
(6) changes in categories of items under
export control referred to.in section 5(e);
(7) determinations of foreign availability
made under section 5(f),,the criteria used to
make such determinations, the removal of
any export controls under such section, and
any evidence demonstrating a need to im-
pose export controls for national security
purposes notwithstanding foreign availabil-
ity;
(8) actions taken in compliance with sec-
tion 5(f) (5);
(9) the operation of the indexing system
under section 5(g);
(10) consultations with the technical ad-
visory committees established' pursuant to
section 5(h), the use made of the advice
rendered by such committees, and the con-
tributions of such committees toward im-
plementing the policies set forth in this Act;
(11) the effectiveness of export controls
imposed under section 6 in furthering the
foreign policy of the United States;
(12) export controls and monitoring under
section 7;
(13) the information contained in the re-'
ports required by'section 7(b) (2), together
with an analysis of-
(A) the impact on the economy and world
trade of shortages or increased prices for
commodities subject to monitoring under
this Act or section 812 of the Agricultural
Act of 1970;
(B) the worldwide supply of such com-
modities; and
(C) actions being taken by other countries
in response to such shortages or increased
prices;
(14) actions taken by the President and
the Secretary to carry out the antiboycott
policies set forth in section 3(5) of this Act;
(15) organizational and procedural changes
undertaken in furtherance of the policies
set forth in this Act, including changes to
increase the efficiency of the export licensing
process and to fulfill the requirements of
section 10, including an analysis of the time
required to process license- applications, the
number and disposition of export license
applications taking more than 90 days to
process, and an accounting of appeals re-
ceived, court orders issued, and actions taken
pursuant thereto under subsection (j) of
such section;
(16) delegations of authority by the Presi-
dent as provided in section 4(e) of this Act;
(17) efforts to keep the business sector of
the Nation informed with respect to policies
and procedures adopted under this Act;
(18) any reviews undertaken in furtherance
of the policies of this Act, including the
results of the . review required by section
12(d), and any action taken, on the basis of
the review required by section 12(e), to sim-
plify regulations issued under this Act;
(19), violations under section 11 and en-
forcement activities under section 12; and
(20) the issuance of regulations under the
authority of this Act, including an explana-
tion of each case in which regulations were
not issued in accordance with the first sen-
tence of section 13(b). ,
(b) REPORT ON CERTAIN EXPORT CONTROLS.-
To the extent that the President determines
that the policies set forth in section 3 of this
Act require the control of the export of goods
and technology other than those subject to
multilateral controls, or require more strin-
gent controls than the multilateral controls,
.the President shall include in each annual
report the reasons for the need to impose, or
to continue to impose, such controls and the
estimated domestic economic impact on the
various industries affected by such controls.
(C) REPORT ON NEGOTIATIONS.-The Presi-
dent shall include in each annual report a
detailed report on the progress of the nego-
tiations required by section 5(1), until such
negotiations are, concluded.
REGULATORY AUTHORITY
SEC. 15. The President and the Secretary
may issue such regulations as are necessary
to carry out the provisions of this Act. Any
such regulations issued to carry out the pro-
visions of section 5(a), 6(a), 7(a), or 8(b)
may apply to the financing, transporting, or
other servicing of exports and the participa-
tion therein by any person.
DEFINITIONS
SEC. 16. As used in this Act-
(1) the term "person" includes' the singu-
lar and the plural and any individual, part-
nership, corporation, or other form of asso-
ciation, including any government or agency
thereof;
(2) the term "United States person"
means any United States resident or na-
tional (other than an individual resident
outside the United States and employed by
other than a United States person), any
domestic concern (including any permanent
domestic establishment of any foreign con-
cern) and any foreign subsidiary or affiliate
(including any permanent foreign establish-
ment) of any domestic concern which is
controlled in fact by such domestic concern,
as determined under regulations of the Pres-
ident;
(3) the term "good" means any article,
material, supply or manufactured product,
including inspection and test equipment,
and excluding technical data;
(4) the term "technology" means the in-
formation and know-how that can be used
to design, produce, manufacture, utilize, or
reconstruct goods, including computer soft-
ware and technical data, but not the goods
themselves; and
(5) the term "Secretary" means the Sec-
retary of Commerce.
EFFECT ON OTHER ACTS
SEC. 17. (a) IN GENERAL: Nothing con-
tained 'in this Act shall be construed to
modify, repeal, supersede, or otherwise af-
fect the provisions of any other laws au-
thorizing control over exports of any com-
modity.
(b) COORDINATION OF CONTROLS.-The au-
thority granted to the President under this
Act shall be exercised in such manner as to
achieve effective coordination with the au-
thority exercised under 'section 38 of the
Arms Export 'Control Act (22 U.S.C. 2778).
(C) CIVIL AIRCRAFT EQUIPMENT.-Notwith-
standing any other provision of law, any
product (1) which. Is standard equipment,
certified by the Federal Aviation Adminis-
tration, in civil aircraft and is an integral
part of such aircraft, and (2) which is to
be exported to a country other than a con- ,
trolled country, shall be subject to export
controls exclusively under this Act. Any
such product shall not be subject to controls
under section 38(b) (2) of the Arms Ex-
port Control Act. For purposes of this sub-
section, the term "controlled country" means
any country described_tu section 620(f) of
the Foreign Assistance Act of 1961.
(d) NONPROLIFERATION CONTROLS.-(1)
Nothing in section 5 or 6 of this Act shall be
construed to supersede the procedures pub-
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CONGRESSIONAL RECORD- HOUSE . 28677
lished by the President pursuant to section
309(c) of the Nuclear Non-Proliferation Act
of 1978.
(2) With respect to any export license ap-
plication which, under the procedures pub-
lished by the President pursuant to section
309(c) of the Nuclear Non-Proliferation Act
of 1978, is referred to the Subgroup on Nu-
clear Export Coordination or other lute r-
agency group, the provisions of section 10
of this Act shall apply with respect to such
license application only to the extent that
they are consistent with such published
procedures, except that if the processing of
any such application under such procedures
is not completed within 180 days after the
receipt of the application by the Secretary,
the applicant shall have the rights of appeal
and court action provided in section 10(j)
of this Act.
(e) TERMINATION OF OTHER AUTHORITY:
On October 1, 1979, the Mutual Defense As-
sistance Control Act of 1951 (22 U.S.C. 1611-
1613d), is superseded.
AUTHORIZATION OF APPROPRIATIONS
SEC. 18. (a) REQUIREMENT OF AUTHORIZING
LEGISLATION.-Notwithstanding any other
provision of law, no appropriation shall be
made under any law to the Department of
Commerce for expenses to carry out the pur-
poses of this Act unless previously and specif-
ically authorized by law.
(b) AUTHORIZATION.-There are authorized
to be appropriated to the Department of
Commerce to carry out the purposes of this
Act-
(1) $8,000,000 for each of the fiscal years
1980 and 1981, of which $1,250,000 shall be
available for each such fiscal year only for
purposes of carrying out foreign availability
assessments pursuant to section 5(f) (5), and
(2) such additional amounts, for each such
fiscal year, as may be necessary for increases
in salary, pay, retirement, other employee
benefits authorized by law, and other non-
discretionary costs.
EFFECTIVE DATE
SEC. 19. (a) EFFECTIVE DATE: This Act shall
take effect upon the expiration of the Export
Administration Act of 1969.
(b) ISSUANCE OF REGULATIONS: (1) Regu-
lations implementing the provisions of sec-
tion ?10 of this Act shall be issued and take
effect not later than July 1, 1980.
(2) Regulations Implementing the provi-
sions of section 7(c) of this Act shall be is-
sued and take effect not later than January 1,
1980.
TERMINATION DATE
SEC. 20. The authority granted by this Act
terminates on September 30, 1983, or upon
any prior date which the President by proc-
lamation may designate.
SAVINGS PROVISIONS
SEC. 21. (a) IN GENERAL.-All delegations,
rules, regulations, orders, determinations,
licenses, or other forms of administrative ac-
tion which have been made, issued, con-
ducted, or allowed to become effective under
the Export Control Act of 1949 or the Export
Administration Act of 1969 and which are in
effect at the time this Act takes effect shall
continue in effect according to their terms
until modified, superseded, set aside, or re-
voked under this Act.
(b) ADMINISTRATIVE PROCEEDINGS: This
Agt shall not apply to any administrative
proceedings commenced or any application
for a license made, under the Export Admin-
istration Act of 1969, which is pending at the
time this Act takes effect.
TECHNICAL AMENDMENTS
SEC. 22. (a) Section 38(e) of the Arms Ex-
port Control Act (22 U.S.C. 2778(e)) is
amended by striking out "sections 6 (c), (d),
(e), and (f) and 7 (a) and (c) of the Export
Administration Act of 1969" and inserting in
lieu thereof "subsections (c), (d), (e), and
(f) of section 11 of the Export Administra-
tion Act of 1979, and by subsections (a) and
(c) of section 12 of such Act".
(b) (1) Section 103(c) of the Energy Policy
and Conservation Act (42 U.S.C. 6212(c)) is
amended-
(A) by striking out "1969" and inserting
in lieu thereof "1979"; and
(B) by striking out "(A)" and Inserting in
lieu thereof "(C) ".
(2) Section 254(e) (3) of such Act (42
U.S.C. 6274(e) (3) ) is amended by striking
out "section 7 of the Export Administration
Act of 1969" and inserting in lieu thereof
"section 12 of the Export Administration Act
of 1979".
(c) Section 993(c) (2) (D) of the Internal
Revenue Code of 1954 (26 U.S.C. 993(c)(2)
(D)) is amended-
(1) by striking out "4(b) of the Export
Administration Act of 1969 (50 U.S.C. App.
2403(b) ) " and inserting in lieu thereof "7(a)
of the Export Administration Act of 1979";
and
(2) by striking out "(A)" and inserting in
lieu thereof "(C) ".
INTERNATIONAL INVESTMENT SURVEY ACT
SEC. 23. (a) Section 9 of the International
Investment Survey Act of 1976 (22 U.S.C.
3108) is amended to read as follows:
"AUTHORIZATIONS
"SEC. 9. To carry out this Act, there are
authorized to be appropriated $4,400,000 for
the fiscal year ending September 30, 1980,
and $4,500,000 for the fiscal year ending Sep-
tember 30, 1981.".
(b) The amendment made by subsection
(a) shall take effect on October 1, 1979.
MISCELLANEOUS
SEC. 24. Section 402 of the Agricultural
Trade Development and Assistance Act of
1954 is amended by inserting "or beer" In
the second sentence immediately after
"wine".
And the House agree to the same.
That the House recede from its amendment
to the title of. the bill.
CLEMENT J. ZABLOCKI,
DANTE B. FASCELL,
JONATHAN B. BINGHAM,
I)ON BONKER,
DONALD J. PEASE,
MICHAEL D. BARNES,
HOWARD WOLFE,
FLOYD FITHIAN,
WM. BROOMFIELD,
PAUL FINDLEY,
Managers on the Part of the House.
WILLIAM PROXMIRE,
ADLAI STEVENSON,
HARRISON A. WILLIAMS,
PAUL TSONGAS,
JOHN HEINZ,
NANCY L. KASSEBAUM,
Managers on'the Part of the Senate.
JOINT EXPLANATORY STATEMENT OF THE
COMMITTEE OF CONFERENCE
The managers on the part of the House and
the Senate at the conference on the disagree-
ing votes of the two Houses on the amend-
ments of the House to the bin (S. 737) to
provide authority to regulate exports, to im-
prove the efficiency of export regulation, and
to minimize interference with the ability to
engage in commerce submit the following
joint statement to the House and the Senate
in explanation of the effect of the action
agreed upon by the managers and recom-
mended in the accompanying conference
report:
The House amendment struck out all of
the Senate bill after the enacting clause and
inserted a substitute text.
The Senate recedes from its disagreement
to the amendment of the House with an
amendment which is a substitute for the
Senate bill and the House amendment. The
.differences between the Senate bill, the
House amendment, and the substitute agreed
to in conference are noted below, except for
clerical corrections, conforming changes
made necessary by agreements reached by the
conferees, and minor drafting and clarifying
changes.
FINDINGS
The Senate bill stated that the ability of
U.S. citizens to engage in international com-
merce is a fundamental concern of U.S.
policy.
The House amendment stated that a large
trade deficit weakens the value of the dollar,
intensifies inflation, and heightens world
economic instability; that poor export per-
formance contributes to the trade deficit;
that it is in the national interest to place
a high priority on exports; and that mini-
mization of restrictions on agricultural ex-
ports is of critical Importance.
The committee of conference agreed to
combine the Senate and House provisions.
POLICY
The Senate bill stated that it is U.S. policy
to minimize uncertainties in export control
policy, and to restrict exports only after full
consideration of domestic economic impact.
The House amendment stated that it is
U.S. policy to restrict exports to countries
violating the principles of the Monroe Doc-
trine; that exports not be controlled unless
they are essential, effective, administered in
accordance with due process, and justified in
annual reports; and that restrictions on ag-
ricultural exports should be minimized.
The committee of conference agreed to
combine the Senate and House policy state-
ments, with the exception of the House ref-
erence to the Monroe Doctrine.
In deleting specific reference in the House
amendment to the Monroe Doctrine, the con-
ferees noted that the precise terms of that
doctrine are unclear, and that section 3(b)
of the act, making it U.S. policy to restrict
exports "to further significantly the foreign
policy of the United States 10 0 0 ? encom-
passes the full range of U.S. foreign policy
goals. It seemed inappropriate, therefore, to
single out this historical element of U.S.
foreign policy for particular emphasis. The
conferees, however, do not wish to preclude
use of the authorities of this act as a response
to foreign military activities in the Western
Hemisphere in contravention to U.S. foreign
policy interests if the President determines
that such a response is appropriate and con-
sistent with the provisions of this act.
AUTHORITY
The Senate bill retained the basic author.
ity of the act for the President to regulate
any export to carry out policies of the act.
The House amendment retained the basic
authority of the act, but separate of the au-
thority to Impose national security, foreign
policy, and short supply controls Into three
different sections.
The committee of conference agreed to the
House provision. .
ALLOCATION OF LICENSES UNDER SHORT-SUPPLY
CONTROLS
The House amendment provided that fac-
tors on the basis of which licenses are allo-
cated shall include the extent to which a
country engages in equitable trade practices
toward the United States and treats the
United States equitably in times of short
supply.
The Senate bill did not contain a compara-
ble provision.
The committee of conference agreed to the
House provision.
POLICY TOWARD INDIVIDUAL COUNTRIES
(a)" The Senate bill provided that export
control policy toward individual countries
shall be reviewed every 3 years in the case of
multilateral controls and annually with re-
spect to unilateral controls.
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The House amendment provided that pol-
icy toward individual countries shall be re-
viewed periodically.
The committee of conference agreed to
the Senate provision.
(b) The House amendment required de-
nial of export licenses to any party respon-
sible for diversion.
The Senate bill did not contain a compara-
ble provision.
The committee of conference agreed to the
House provision, with an amendment speci-
fying that the provision only covers diver-
sions that are in violation of the terms of an
export license and that additional steps may
be directed to the party responsible for the
diversion.
The committee of conference expects that
the executive branch will institute proce-
dures that assure that export licenses for
controlled goods or technology will clearly
specify that such goods and technology will
be used only for uses which would not make
a significant contribution to military poten-
tial. If the exported goods or technology is
diverted to a significant military use in vio-
lation of license conditions, the President
will be required to take appropriate actions.
This provision is not intended to limit in
any way the President's discretion under the
act to take appropriate action to terminate
diversion of exported items to military use
even if such diversion does not technically
constitute a violation of license conditions.
Obviously the President's freedom of action
to protect U.S. national security is not con-
strained in situations in which, through
oversight or negligence, the Government fails
to specify conditions of end-use of exported
or licensed goods or technology.
LICENSE DENIALS
The House amendment, in cases of license
denials, required the Secretary to notify the
applicant of modifications which would per-
mit approval of the application, or indicate
officials with whom the applicant could con-
sult about modifications.
The Senate bill did not contain a compa-
rable provision.
The committee of conference agreed to the
House provision.
CRITICAL TECHNOLOGY
The Senate bill required that priority be
given to preventing transfer of critical goods
and technology, that the Secretary of De-
fense shall bear primary responsibility -for
identifying critical goods and technology,
and that the Secretary of Commerce, in con-
sultation with the Secretary of Defense, shall
review and revise controls for the purpose of
insuring that they cover and, to the maxi-
mum extent are limited to, critical goods and
technology.
The House amendment found that con-
trols should be focused primarily on, and
implemented for, critical goods and tech-
nology, and required the Secretary of De-
fense to develop a list of critical technolo-
gies, which shall be completed and pub-
lished by October 1,. 1980, and become part
of the Commodity Control List.
The committee of conference agreed to the
House provision, with an amendment adding
the Senate language regarding review of the
control list and approval of the list by other
agencies.
TERMINATION OF FOREIGN POLICY CONTROLS
The Senate bill provided that the Presi-
dent must extend foreign policy controls
annually or they will expire.
The House amendment did not contain a
comparable provision.
The committee of conference agreed to
the Senate provision.
CRITERIA FOR FOREIGN POLICY CONTROLS
The Senate bill stated criteria that the
President shall consider before imposing, in=
creasing, or extending foreign policy controls.
COI~G]JESSHONAL RECORD -HOUSE September 27, 1979
The House amendment provided' similar
criteria.
The committee of conference agreed to
combine the Senate and House provisions.
ALTERNATIVE MEANS
The Senate bill required the President to
consider alternative means to further the
purposes of foreign policy controls.
The House amendment required the Presi-
dent to determine, before imposing foreign
policy controls, that reasonable efforts have
been made to achieve their purposes through
alternative means.
The committee of conference agreed to the
House provision.
CONSULTATION WITH INDUSTRY
The Senate bill required regular consulta-
tion with industry on export policy and for-
eign availability.
The House amendment required the Sec-
retary of Commerce to consult with affected
U.S. industries before imposing foreign
policy controls.
The committee of conference agreed to
combine both the Senate and House provi-
sions.
CONSULTATION ON FOREIGN POLICY, CONTROLS
(a) The, Senate bill required the President
to inform Congress when imposing, increas-
ing, or extending foreign policy controls, and
to justify such actions to the public to the
extent possible.
The House amendment did not contain a
comparable provision.
The committee of conference agreed to the
Senate provision.
(b) The House amendment required the
President to notify Congress whenever he
imposes a foreign policy export control, and
to report to Congress on the reasons for the
control and on his compliance with the re-
quirements of the act in imposing the con-
trol, and provided that the control shall
cease to be effective upon adoption of a con-
current resolution of disapproval within 60
days.
The Senate bill did not contain a com-
parable provision.
The committee of conference agreed to the
House provision, with an amendment remov-
ing the provision for a congressional veto by
concurrent resolution.
In agreeing to eliminate the House pro-
vision for congressional veto by concurrent
resolution of new forms of export controls
for foreign policy purposes, the conferees
emphasized their expectation that the exec-
utive branch would consult fully with Con-
gress prior to employing any such controls,
and agreed to give further consideration to
a congressional veto mechanism in subse-
quent legislation in the event prior consul-
tation on foreign policy controls proved in-
adequate under the provisions of this act.
EXCLUSION FOR FOOD AND MEDICINE
The House amendment provided that for-
eign policy control authority does not au-
thorize controls on food and medicine, and
stated the intent of Congress that foreign
policy controls should not be applied to ex-
ports which would meet basic human needs.
The Senate bill did not contain a compa-
rable provision.
The committee of conference agreed to the
House provision, with an amendment to make
the exclusion apply only to medicine and
medical supplies.
TRADE EMBARGOES
The House amendment provided that for-
eign policy control authority does not au-
thorize total trade embargoes.
The Senate bill did not contain a compa-
rable provision.
The committee of conference agreed to the
Senate position.
However, the conferees agreed that, al-
though certain authorities provided in this
act are used to help implement total U.S.
economic embargoes against several coun-
tries, authority for such embargoes is con-
tained exclusively in section 5(b) of the
Trading With the Enemy Act and in section
5(b) of the International Emergency Eco-
nomic Powers Act. The conferees confirmed
the fact that this act is not intended to con-
stitute authority to impose total economic
embargoes, but felt this was sufficiently clear
that it was unnecessary to so provide in the
act itself.
INTERNATIONAL OBLIGATIONS
The House amendment provided that cer-
tain limitations on foreign policy control au-
thority shall not apply,to the Imposition of
controls pursuant to certain international
obligations.
The Senate bill did not contain a compa-
rable provision.
The committee of conference agreed to th j
House provision, with an amendment confin-
ing the coverage of the provision to treaties
and international agreements.
FOREIGN POLICY CONTROL LIST
The House amendment required that items
subject to foreign policy control be identi-
fied as such on the list. The Secretary of
State, with the concurrence of the Secretary
of Commerce, is responsible for identifying
items to be controlled for foreign policy pur-
poses.
The Senate bill did not contain a compa-
rable provision.
The committee of conference agreed to the
House provision, with an amendment chang-
ing the language on periodic revision of the
control list.
In adopting the House language requiring
identification of control list items subject
to controls for foreign policy purposes, the
conferees emphasized that all controlled
items could continue to be included in a
single list. The purpose of this provision is
to assure that exporters may distinguish
goods and technology controlled only for
foreign policy purposes from those subject
to control for national security purposes
only, or for both national security and foreign
policy purposes.
FOREIGN AVAILABILITY
The Senate bill provided that the President
shall not impose national security or foreign
policy controls on items where there is for-
eign availability in significant quantity and
in quality comparable to availability from
the United States, unless he determines that
the absence of controls would be detrimental
to national security or foreign policy.
The House amendment, with respect to na-
tional security controls, required the Secre-
tary of Commerce to review foreign avail-
ability on a continuing basis, and to remove
validated license controls on, and approve
license applications for, items which the Sec-
retary determines to be available in fact from
foreign sources to such an extent that con-
trols would be ineffective, unless the presi-
dent determines that the absence of controls
would be detrimental to national security, in
which case the President must publish that
determination, as basis, and its estimated
economic impact. With respect to foreign
policy controls, the House amendment re-
quired the President to attempt to negotiate
for the cooperation of foreign governments
In controlling exports which the United
States controls for foreign policy reasons. `
The committee of conference agreed to ac-
cept the Senate general policy provision re-
garding foreign availability and the detailed
House provisions with regard to national se-
curity controls and to foreign policy controls.
The committee of conference agreed to delete
the Senate provision requiring the President
to ask for additional authority to secure co-
operation in eliminating foreign availability
should negotiations fail. In deleting this Sen-
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September 27, 1979 CONGRESSIONAL RECORD-HOUSE
ate provision, the committee of conference in
no way wishes to imply that the President
cannot invoke his existing authority to secure
cooperation in the event that negotiations to
eliminate foreign availability are unsuccess-
ful. If .the President believes that he requires
additional authority to take effective action
to that end, the committee of conference ex-
pects the President to advise the Congress
and recommend appropriate legislation.
NATIONAL SECURITY CONTROL LIST
The Senate bill provided that the Secre-
tary of Commerce shall prepare and maintain
the control list; the Secretary of Defense
has primary responsibility for identifying
critical technologies.
' The House amendment provided that the
.Secretary of Commerce shall establish and
maintain the list. The Secretary of Defense
has primary responsibility for identifying
.items for inclusion on the list. Those items
on which the Secretaries of Commerce and
Defense concur would comprise the list.
The committee of conference agreed to the
House provision.
The conferees intend this provision, as well
as the provision agreed to with respect to
the creation of a list of critical technologies,
to serve to clarify the respective roles of the
Secretary of Commerce and the Secretary of
Defense in the list maintenance and review
processes, but not to change fundamentally
the current sharing of responsibilities
between these two officials and their respec-
tive Departments. The conferees intend that
the existing array of responsibilities for the
administration of export controls within the
executive branch remain unchanged and
impose no new constraints on export licens-
ing. The Secretary of Commerce retains the
responsibility for maintaining the export
control list: and, the responsibility of the
Secretary of Defense to identify critical
goods and technologies for possible inclusion.
on that list is made clear. If the Secretary of
Defense and the Secretary of Commerce fail
to concur with respect to inclusion of items
on the list, the matter is referred to the
President for resolution.
LIST REVsW
The Senate bill required that the control
list be reviewed every 3 years for multilateral
controls and annually for unilateral controls.
The House amendment provided for con-
tinuous review of the list.
The committee of conference agreed to the
House provision with an amendment adopt-
ing the Senate language on the period for
review of control list.
In adopting the Senate's provision that
the control list be reviewed every 3 years in
the case of multilateral controls and
annually in the case of unilateral controls,
the conferees expressed the hope and expec.
tation that such a specific mandate for con-
trol list review would prove more compelling
than the less definite House provision calling
for "continuous" review. Annual review of
unilateral controls would insure a more fre-
quent review of those controls than is now
provided.
NOTIFICATION TO PUBLIC
The Senate bill required the Secretary
of Commerce to keep the public fully
apprised of changes in export control policy
and procedures.
The House amendment required the -Sec-
retary of Commerce to publish any revision
of the control list in the Federal Register
and to specify whether it applies to national
security or foreign policy controls.
The committee of conference agreed to
combine the Senate and House provisions.
TYPES OF EXPORT LICENSES
The Senate bill required establishment of
a validated license, a qualified general li-
cense, a general license, and such other types
of licenses as the Secretary of Commerce
may deem appropriate.
The House amendment authorized the es-
tablishment of the same three types of li-
censes and such others as. the Secretary con-
siders necessary; the definitions of the li-
censes are somewhat different from those in
the Senate bill.
The committee of conference agreed to
the House provision, with technical changes
simplifying the distinctions between the
types of licenses.
USE OF EXPORT LICENSES
The Senate bill stated the intent of Con-
gress that validated licenses be required in-
sofar as possible only for items subject to
multilateral controls. Use for other items
must be reported to Congress annually. The
Senate bill also stated the intent of Congress
that qualified general license be used as
much as possible for other items, and re-
quired establishment of procedures for qual-
ified general license within 60 days of enact-
ment.
The House amendment stated the intent
of Congress to encourage use of qualified
general license to the maximum extent prac-
ticable. The House amendment also provided
that, insofar as possible, validated license
shall be limited to items subject to multi-
lateral controls which require the specific
approval of the parties to the controls, to
items monopolized by the United States or
to items where the United States is seeking
comparable controls by other countries, and
that a qualified general license shall be used
for items subject to multilateral controls but
exportable at U.S. discretion.
The committee of conference agreed to the
House provision, with an amendment adopt-
ing the Senate language on establishing pro-
cedures for approval of items that can be
exported with a qualified general license,
and allowing more time for establishing those
procedures.
PROCEDURES FOR PROCESSING LICENSE
APPLICATIONS
(a) The Senate bill required the Secretary
of Commerce to consult with other agencies
on licensing decisions; required a determi-
nation by the Secretary of Commerce within
10 days on whether an application must be
submitted for multilateral review; provided
90 days for the Secretary of Commerce to
approve or disapprove any application which
does not require interagency review; and
provided 90 days, following interagency re-
view, for the Secretary of Commerce to re-
solve interagency disagreements and issue
or deny a license.
The House amendment provided that au-
thority to deny license applications may not
be delegated below the level of Deputy As-
sistant Secretary; provided that any agency
may determine the types of applications it
wishes to review, and required the Secretary
of Commerce to submit such applications to
such agency; provided 30 days for the Sec-
retary of Commerce to approve or disapprove
any application which does not require in-
teragency review; and provided three 30-day
stages for consideration of license applica-
tions following interagency review: first, by
Department of Commerce licensing officials;
second, by the Secretary of Commerce; and
third by the President. If any agency appeals
the licensing decision at any stage, the ap-
plication goes to the next stage. -
The committee of conference agreed to the
Senate provision.
(b) The Senate bill required the Presi-
dent to notify Congress whenever he over-
rules a licensing recommendation made to
him by the Secretary of Defense.
The House amendment did not contain a
comparable provision.
The committee of conference agreed to the
Senate provision.
(c) The House amendment provided a 60-
III 8679
day time limit for multilateral review of
U.S. licensing cases and for U.S. review of
other countries' licensing cases.
The Senate bill did not contain a com-
parable provision.
The committee of conference agreed to the
House provision with an amendment pro-
viding a national security waiver for the 60-
day period and a notification procedure if the
waiver is used.
(d) The Senate bill required records on in-
formation regarding the basis for and any
dissent from an export license decision.
The House amendment did not contain a
comparable provision.
The committee of conference agreed to the
Senate provision with an amendment re-
moving certain requirements for the record-
keeping.
? (e) The Senate bill provided that appli-
cants. may petition the Secretary of Com-
merce requesting that licensing action be
brought into conformity with requirements
of the act.
The House - amendment provided that,
whenever an action on an application is not
taken within the time limit specified, the
applicant may petition the Secretary of
Commerce for compliance with such time
limits. If the Secretary does not take correc-
tive action within 30 days or if such action
has been taken but the Secretary does not
so notify the applicant, the applicant may
bring, an action in U.S. District Court.
The committee of conference agreed to the
House provision.
SHORT-SUPPLY MONITORING AUTHORITY
The Senate bill authorized short-supply
monitoring, including data gathered *under
the new petitioning process.
The House amendment stated the same au-
thorization, except the House amendment
made no reference to data gathered pursuant
to petitions for monitoring or controls.
The committee of conference agreed to the
House provision.
EXPORTS OF CRUDE OIL
(a) The Senate bill permitted the export of
oil after a period of 60 calendar days of con-
gressional session unless both Houses of Con-
gress adopt a concurrent resolution of dis-
approval.
The House amendment would permit the
export of oil only if Congress passes a con-
current resolution approving such export
within 60 days.
The committee of conference agreed to
the House provision.
(b) The House amendment stated that
there should be a General Accounting Office
(GAO) audit of any Presidential finding that
export would lower refinery costs and whole-
sale and retail prices.
The Senate bill did not contain a com-
parable provision.
The committee of conference agreed to
the Senate position.
In deleting the provision of the House bill
requiring audit by the GAO of certain Presi-
dential findings; the conferees noted possible
difficulties for the GAO to perform such a2
audit, and the unlikelihood that the Presi-
dent would, in fact, make findings of lower
costs and prices resulting from a proposed
export of Alaskan oil. The action of the con-
ferees, however, is not intended to preclude
or inhibit any Member or committee of Con-
gress from requesting the GAO to perform
such an audit if and when the President were
to issue such findings.
(c) The Senate bill exempted any country
with which the United States has entered
into a multilateral supply arrangement pur-
suant to section 251(d) of the Energy Policy
and Conservation Act, and any country with
which the United States entered into bi-
lateral oil supply agreement prior to June 25,
1979, provided Congress is promptly notified
of such agreements.
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H 8680 CONGRESSIONAL RECORD -HOUSE
The House amendment exempted any
country with which the United States en-
tered into a bilateral oil supply agreement
before May 1, 1979.
The committee of conference agreed to
the Senate provision, with an amendment
clarifying that Alaskan oil can be shared
pursuant to the International Emergency
Oil Sharing Plan of the International En-
ergy Agency. The exemption from export re-
strictions of any oil exported pursuant to a
bilateral agreement 1s intended by the con-
ferees, to apply to the various interrelated
arrangements and agreements between the
United States and Israel entered into on
March 26, 1979, in conjunction with the
Treaty of Peace Between Israel and Egypt,
and the subsequent agreement under which
the United States will supply on to Israel
under circumstances specified in the agree-
ment for 15 years (including the 5-year
period covered by the United States-Israel
oil arrangement of September 1, 1975).
The intent was expressed in House debate
on this provision that it should not have the
effect of prohibiting Alaskan crude in ex-
cess of 1.2.million barrels per day from being
refined in the Netherland Antilles provided
all end products of such refining are pro-
vided to the United States and the con-
sumer benefit and all other requirements
of this act are fulfilled.
EXPORTS OF REFINED OIL PRODUCTS
The House amendment prohibited the ex-
port of refined oil products, except after a
period for congressional review and action
and except for exports to a country of 250,-
000 barrels or less in a year and included a_
waiver of the provision if vital to the na-
tional interest.
The Senate bill did not contain a com-
parable provision.
The committee of conference agreed to
the House provision, with an amendment
changing the period of delay to 30 days after
notification of Congress, with authority for
the President to waive the 30-day delay. The
provision would apply not just to fully re-
fined oil products, but also to partially re-
fined oil products and to middle distillates.
HIDES
The House amendment stated that the
Secretary of Agriculture shall collect data
on export sales of animal hides and skins.
The Senate bill did not contain a com-
parable provision.
The committee of conference agreed to the
House provision.
CONGRESSIONAL APPROVAL OF AGRICULTURAL
SHORT-SUPPLY CONTROLS
The Senate bill required a report to the
Congress of any proposed use of authority to
control export of agricultural commodities.
Such proposed control would become ef-
fective only after 60 calendar days of con-
tinuous congressional session if neither
House has passed a resolution of disapproval,
or after one House had disapproved within
60 days and the other House disapproved
such disapproval within . an additional 30
days.
The House amendment retained existing
law which requires notification to Congress
of imposition of export controls on agricul-
tural commodities for short supply or for-
eign policy purposes. Such controls cease if,
within 30 days, Congress passes a concur.
rent resolution of disapproval. .
The committee of conference agreed to the
House provision.
DELEGATION OF AUTHORITY
The Senate bill authorized the President
to delegate authorities conferred by the act,
except to any official not confirmed by the
Senate and except for any authority to over-
rule or modify a decision or recommendation
of the Secretary of Commerce, State, or
Defense.
The House amendment repealed a similar
provision in existing law.
The committee of conference agreed to the
Senate provision.
INDEXING
The Senate bill directed the Secretary asf
Commerce to adopt regulations to eliminate
unnecessary delay in implementing decisions
to remove or relax controls, and to consider
removing site visitation requirements for
goods removed from controls.
The House amendment authorized the Sec--
retary of Commerce, where appropriate, to
provide for annual increases in performance
levels of licensed goods and technology and
to remove from the list those goods and tech-
nologies which no longer meet such per-
formance levels unless another government
agency objects and the Secretary determines
controls should be continued.
The committee of conference agreed to the
House provision, with an amendment to in-
clude the Senate language on site visitation.
The indexing provision is not intended to au-
thorize the automatic decontrol of goods and
technologies in accordance with prior projec-
tions of obsolescence. The committee of con-
ference expects that, prior to effectuating any
scheduled removal or relaxation of a control,
a current appraisal will be made to assure
that prior projections have actually material-
ized. The committee of conference also wishes
to make it clear that the indexing provision
is in no way to be interpreted to authorize
decontrol of items which are obsolete by U.S.
standards, but would nevertheless make a
significant contribution to the military po-
tential of the Soviet Union or other adversary
nation.
EXPORT OF HORSES
The Senate bill retains the existing provi-
sion of law prohibiting export of horses by
sea except by waiver of the Secretary of
Commerce based upon determination that
horses are not being exported for purposes of
slaughter.
The House amendment repealed a similar
provision of existing law.
The committee of conference agreed to the
Senate provision.
CRIME CONTROL
The Senate bill authorized the President
to add other countries to the existing list
of countries exempted from the requirement
of validated license for export of any crime
control and detection instruments.
The, House amendment retained existing
law which exempts only NATO countries,
Japan, Australia, and New Zealand.
The committee of conference agreed to
the Senate provision.
BARTER
The House amendment authorized exemp-
tion from any short supply or national
emergency controls of goods exported pur-
suant to a barter agreement provided the
Secretary of Commerce makes certain find-
ings regarding the effects of such a barter
agreement.
The Senate bill did not contain a compara-
ble provision.
The committee of conference agreed to the
House provision, with an amendment remov-
ing the exemption for barter agreements
from national emergency controls.
RED CEDAR
The House amendment contained a provi-
sion prohibiting, after a 3-year phase-out
period, the export of unprocessed western
red cedar harvested on State or Federal lands.
Exports during the 3-year phase-out period
are to be allocated on the basis of prior
history of exports and other appropriate
factors.
The Senate, bill did not contain a com-
parable provision.
The committee of conference agreed to the
House provision.
September 27, 1979
TERRORISM
The Senate bill prohibited the approval of
a license for the export of a good or tech-
nology to any country, if the Secretary of
State has made the. following determina-
tions:
(1) The country has demonstrated a pat-
tern of support for actions of international
terrorism; and
(2) the export would make a significant
contribution to the military potential of the
country or would enhance its ability to sup-
port international terrorism.
The Senate bill also permitted a Presi-
dential waiver of the prohibition if he de-
termines that it is in the national interest
to permit the export.
The House amendment included a simi-
lar provision with the same determinations:
but instead of a prohibition, required that
the House Foreign Affairs and the Senate,
Foreign Relations Committees be notified
before issuance of a license for the export
of a good valued at more than $7 million.
The committee of conference agreed to the
House provision with an amendment chang-
ing the notification to the Senate Foreign
Relations Committee to a notification to the
Senate Committee on Banking, Housing, and
Urban Affairs.
CIVIL AIRCRAFT EQUIPMENT
The House amendment provided that any
product which is standard equipment in civil
aircraft and is an integral part of such air-
craft, and which is to be exported to a
country other than a controlled country,
shall be subject to the Export Administra-
tion Act rather than to the Arms Export
Control Act.
The Senate bill did not contain a com-
parable provision.
The committee of conference agreed to, the
House provision.
It is the intent of the conferees that
civil training aircraft below 600 horsepower
now subject to control under the Arms Ex-
port Control Act, as well as larger aircraft
with certain integral components now sub-
ject to control under the Arms Export Con-
trol Act, shall henceforth be transferred to
and subject to control only under the Export
Administration Act. The conferees noted,
however, that this provision should not be
implemented in such a manner as to ease
restrictions on the sale of any aircraft to
South Africa. .
NONPROLIFERATION CONTROLS
The House amendment stated that noth-
ing id new sections 5 and 6 of the Export
Administration Act shall be construed to
supersede the procedures pursuant to the
Nuclear Non-Proliferation Act of 1978. New
section 10 (licensing procedures) of the Ex-
port Administration Act shall apply, when
consistent, to export licenses referred under
the procedures established pursuant to sec-
tion 309(c) of the Nuclear Non-Proliferation
Act, to the Subgroup on Nuclear Export Co-
ordination or any other interagency group.
If a decision is not rendered under these pro-
cedures within 180 days, the applicant shall
have the right of appeal and court action
provided for in this bill.
The Senate bill did not contain a com-
parable provision.
The committee of conference agreed to the
House provision.
PETITIONS FOR MONITORING OR CONTROLS
The Senate bill (1) established a formal
procedure by which petitions can be filed
with the Secretary of Commerce for consid-
eration of monitoring or export controls on
any material or commodity for which an in-
crease in domestic prices or a domestic short-
age has or may have a significant adverse ef-
fect on the national economy or any sector
thereof; (2) stated that if a petition has
been considered and in the absence of signifi-
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September 27, 1979 CONGRIESS]ONAIL RIECORD-HOUSE
cantly changed circumstances, the Secre-
tary may determine that a subsequent peti-
tion does not merit consideration; (3) stated
that if necessary, the Secretary may impose
temporary monitoring or controls during the
consideration of a petition, and interested
persons shall have an opportunity to com-
ment on such actions; and (4) specifically
stated that the procedure did not apply to
any agricultural commodity.
The House amendment (1) contained a
similar provision regarding the procedure by
which petitions can be filed with the Secre-
tary of Commerce, except that the House pro-
vision pertained only to metallic material
capable of being recycled and with respect
to which they may be a significant adverse
effect on the national economy or any sector
thereof because of serious inflationary im-
pact due to increased prices or a domestic
shortage resulting from exports; (2) included
tion of subsequent petitions in.the absence of
significantly changed circumstances, except
that it limited this authority to a period of
6 months following the consideration of a
petition; and (3) contained a similar pro-
vision regarding the imposition of temporary
monitoring or controls during the considera-
tion of a petition, except it did not specifi-
cally provide for comment by interested
persons.
The committee of conference agreed to the
House provision with an amendment remov-
ing the reference to inflationary impact due
to increased prices in the end product.
CONSULTATIONS AND STANDARDS
The Senate bill retained from existing law
the provision that, in determining what shall
be controlled or monitored, consultations
shall be held with other governmental de-
partments and agencies, and with private
industry.
The House amendment deleted this pro-
vision from the act.
The committee of conference agreed to
the House provision.
ENERGY CONTROLS
The Senate bill retained the provision of
the act which required the Secretary of
Commerce to consult the Secretary of Energy
with respect to monitoring of exports re-
lated to energy, and added to the provision
the same consultation requirement with re-
spect to the imposition of export controls on
energy related exports.
The House amendment retained the provi-
sion regarding monitoring without adding
the reference to export controls.
The committee of conference agreed to
the Senate provision.
PRIVATE CHANNELS
The Senate bill retained the provision of
the existing act which provided that, in au-
thorizing exports, full utilization of private
competitive trade channels shall be encour-
aged.
The House amendment deleted this pro-
vision from the act.
The committee of conference agreed to the
House provision.
TECHNICAL ADVISORY COMMITTEES (TAO'S)
(a) The Senate bill retained the provisions
of the act authorizing technical advisory
committees to advise the Secretary of Com-
merce.
The House amendment retained the same
provision and added that the TAC's shall
also advise the Secretary of Defense.
The committee of conference agreed to
the House provision.
(1) The Senate bill retained the provision
of the act which authorizes reimbursement
of expenses incurred -by members of the
TAC's.
The House amendment deleted this provi-
sion from the act.
The committee of conference agreed to the
Senate provision.
(c) The Senate bill retained the provision
of the act which provides that each TAC
shall elect a chairman and shall meet at least
every 3 months, unless the chairman de-
termines otherwise, and each TAC shall be
terminated after 2 years unless the Secretary
determines otherwise.
The House amendment deleted this provi-
sion from the act.
The committee of conference agreed to the
Senate provision.
(d) The Senate bill stated that upon cer-
tification of foreign availability by a TAC,
the Secretary shall investigate and report to
the TAC on whether the Secretary concurs
with the certification. If the Secretary con-
curs, the Secretary shall submit a recom-
mendation to the President who shall act in
accordance with section 4(a) (2) (E) of the
Senate bill relating to foreign availability
determinations.
The House amendment stated that upon
such certification of foreign availability, the
Secretary shall take steps to verify such
availability, and upon such verification shall
remove the requirement for a validated li-
cense, unless the President determines that
the absence of controls would prove detri-
mental to the U.S. national security, upon
which decision the President shall publish
his determination along with a statement of
its basis and its estimated economic im-
pact.
The committee of conference agreed to the
House provision; with a technical amend-
ment.
(e) The Senate bill provided that the
Secretary of Defense shall have the same
authorities and responsibilities as the Sec-
retary of Commerce with respect to the
establishment and receiving of advice from
TAC's.
The House amendment did not contain
a comparable provision.
The committee of conference agreed to the
House position.
VIOLATIONS
The House amendment stated that any
person who is issued a validated license and
who willfully fails to report a diversion
shall be fined the sum of the profit from
the sale or 9100,000, whichever is greater, or
imurisoned for up to 5 years.
The Senate bill did not contain a com-
parable provision.
The committee of conference agreed to the
House provision, with an amendment spe-
cifically tying the Drovision to violations of
the conditions of an export license and
changing the fine to five times the value of
the export or 0100.000, whichever is greats;.
CONFIDENTIALITY
The Senate bill provided that the enact-
ment of the new confidentiality provision
shall not affect any judicial proceeding un-
der section 552 of title 5, U.S. Code (Freedom
of Information Act) to obtain access to
boycott reports submitted prior to Octo-
ber 31, 1976 which was pending on May 15,
1979.
The House amendment provided in its
savings provisions, that nothing in this act
shall affect any investigation, suit, action,
or other judicial proceeding commenced un-
der the Export Administration Act or the
Freedom of Information Act which is pend-
ing when this act takes effect.
The committee of conference agreed to
the Senate provision with the understand-
ing that nothing in this act restricts the
publication of boycott reports, including vol-
untary periodic surveys made by D.S. cor-
porations of their foreign subsidiaries.
SIMPLIFYING DOCUMENTATION
(a) The Senate bill moved from this sec-
tion of the Act to the section detailing in
IRt 86M
the annual report the requirement for a
report on action taken to reduce the cost
of recordkeeping and export documentation.
The House amendment retained this re-
porting requirement in this section, which
requires that the report be made in the first
annual report made after the action is taken.
The committee of conference agreed to
the Senate provision.
(b) The House amendment retained, with
technical changes, the provision in the act
requiring the Department of Commerce to
seek ways to facilitate compliance with the
act by simplifying the rules and regulations,
or clarifying the export control lists.
The Senate bill repealed this provision.
The committee of conference agreed to the
House provision.
ADMINISTRATIVE PROCEDURES
The Senate bill stated that it is the in-
tent of Congress that there be a meaningful
opportunity for public comment on all reg-
ulations imposing controls on exports before
those controls take effect.
The House amendment did not contain a
comparable provision.
The committee of conference agreed to
the Senate provision.
ANNUAL REPORT
The Senate bill.required an annual report -
on the implementation of the act. The an-
nual report called for in the Senate bill re-
quired the following items not included in a
similar House amendment: (1) efforts to
keep the business sector informed about
policies and procedures; (2) delegations of
authority by the President under section
4(k) of the Senate bill; (3) the progress of
negotiations with COCOAS under section 4(n)
of the Senate bill; and (4) revisions to sim-
plify reporting requirements prescribed in
section 11(d) of the Senate bill.
The House, amendment required that an
annual report on the administration of the
act during the preceding fiscal year be sub-
mitted no later than December 31. The House
annual report required the following item
not included in the Senate bill: the effec-
tiveness of export controls imposed under
section 6 for foreign policy purposes.
The committee of conference agreed to
combine the Senate and House provisions.
DEFINITIONS
The Senate bill included a definition of
"goods" and of "technology".
The House amendment included a defini-
tion of the "Secretary".
The committee of conference agreed to
both the Senate and the House provisions.
REGULATORY AUTHORITY
The House amendment contained a sep-
arate section stating that the. President and
the Secretary may issue rules and regula-
tions, and that they may apply to the financ-
ing, transporting, or other servicing of
exports.
The Senate bill did not contain a separate
section for this authority.
The committee of conference agreed to
the House provision.
AUTHORIZATION OF APPROPRIATIONS
(a) The Senate bill authorized $8 million
'for fiscal year 1980.
The House amendment authorized $7.070
million for fiscal year 1980 and $7.777 million
for fiscal year 1981.
The committee of conference agreed to
combine the two provisions into a 2-year au-
thorization, with $8 million authorized for
each fiscal year.
(b) The Senate bill stated that $1.250 mil-
lion of that sum shall be available only for
establishing and maintaining the capability
to make foreign availability assessments.
The House amendment did not contain a
comparable provision.
The committee of conference agreed to the
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H 8682
Senate provision, with an amendment mak-
ing it applicable for both fiscal years 1980
and 1981.
(c) The Senate bill authorized $2.5 million
for the Department of Defense for fiscal year
1980 for the purposes of carrying out its
functions under section 4 (a).
The House amendment did not contain a
comparable provision.
The committee of conference agreed to the
House position, with the understanding that
funding for this purpose should be made
available within the limits established in the
regular Department of Defense authoriza-
tion.
(d) The House amendment stated that the
Secretary of State may use funds appropri-
ated to the Department of State to carry out
the provisions of section 5(k) of the.act.
The Senate bill did not contain a compa-
rable provision.
The committee of conference agreed to the
Senate position.
EFFECTIVE DATE
The House amendment stated that ? the
amendments made by sections 107 (domestic
crude oil provision) and 108 (repealing the
boycott of Uganda) shall take effect on the
date of enactment of this act.
The Senate bill did not contain a com-
parable provision.
The committee of conference agreed to the
Senate position.
EFFECTIVE DATE OF PROCEDURES ?
The House amendment delayed the effec-
tive date of the new export licensing proce-
dures under new section 10 until July 1,
1980.
The Senate bill did not contain a com-
parable provision.-
The committee of conference agreed to the
House provision, with an amendment to
make January 1. 1980 the effective date for
the regulations implementing the procedures
for petitioning for monitoring or controls of
certain metallic materials.
SAVINGS PROVISION
The House amendment stated that the
provisions of this act shall not apply to any
administrative proceedings or any application
for a license pending at the time this act
takes effect.
The Senate bill did not contain a com-
parable provision.
The committee of conference agreed to the
House provision.
INTERNATIONAL INVESTMENT SURVEY ACT
The House amendment authorized $4.4
million for fiscal year 1980 and $4.5 million
for fiscal year 1981 for implementation of the
International Investment Survey Act.
The Senate bill did not contain a com-
p.?rable provision.
The committee of conference agreed to the
House provision.
PUBLIC LAW 480
The House amendment added "beer" to
the provision in Public Law 480 that allows
the authorities of the act-to be used for pro-
motion of export of wine.
The Senate bill did not contain 'a com-
parable provision.
The committee of conference agreed to the
House provision.
CLEMENT J. ZABLOCKI,
DANTE B. FASCELL,
JONATHAN B. BINGHAM,
DON BONKER,
DONALD J. PEASE,
MICHAEL D. BARNES,
HOWARD WOLPE,
FLOYD PITHIAN,
WM. BROOMFIELD,
PAUL FINDLEY,
Managers on the Part of the House.
CONGRESSIONAL RECORD - ]HIOUSIE
WILLIAM PROxMIRE,
ADLAI STEVENSON,
HARRISON A. WILLIAMS,
PAUL TSONGAS,
JOHN HEINZ,
NANCY KASSEBAUM,
Managers on the Part of the Senate.
M . GILMAN.
. ABDNOR in seven instances.
Mr. FORSYTHE.
Mr. QUAYLE.
Mrs. SNOWE.
Mr. STANTON in -two instances.
Mr. DOUGHERTY in three instances.
By unanimous consent, leave of ab-
sence was granted to:
Ms. HOLTZMAN (at the request of Mr.
WRIGHT),-for today, on account of illness.
Mr. GINGRICH (at the request of Mr.
RHODES), for September 28, on account
of official business.
SPECIAL ORDERS GRANTED
By unanimous consent, permission to
address the House, following the legisla-
tive program and any special orders here-
tofore entered, was granted to:
(The following Members (at the re-
quest of Mr. LEE) to revise and extend
their remarks and include extraneous
material:)
Mr. AsHBROOK, for 60 minutes, today.
(The following Members (at the re-
quest of Mr. MAVROULES) to revise and
extend their remarks and include extra-
neous material : )
Mr. GONZALEZ, for 15 minutes, today.
Mr. ANNUNZIO, for 5 minutes, today.
Mr. WEAVER, for 10 minutes, today.
Mr. HAMILTON, for 5 minutes, today.
Mr. WIRTH, for 5 minutes, today.
Mr. CAVANAUGH, for 5 minutes, today.
Mr. VANIK,. for 5 minutes, today.
Mr. THOMPSON, for 15 minutes, today.
Mr. STEWART, for 5 minutes, today.
fAr. DOWNEY, for 5 minutes, today.
Mr. WYATT, for 5 minutes, today.
Mr. PEPPER, for 5 minutes, today.
Mr. MURPHY of New York, for 10 min-
utes, today.
Ms. FERRARO, for 5 minutes, today.
Mr. LEVITAS, for 5 minutes, today.
EXTENSION OF REMARKS
By unanimous consent, permission to
revise and extend remarks was granted
to:
Mr. STOKES, notwithstanding the fact
that it exceeds two pages of the CON-
GRESSIONAL RECORD and is estimated by
the Public Printer to cost $3,956.50.
(The following Members (at the re-
quest of Mr. LEE) and to include ex-
traneous matter:)
Mr. PHILIP M. CRANE in two instances.
Mr. DERWINSKI in three instances.
Mr. MCCLOSKEY in three instances.
Mr. LAGOMARSINO in two instances.
Mr. CLAUSEN.
Mr. LENT.
Mr. HOLLENBECK in two instances.
Mr. BROOMFIELD.
Mr. RUDD.
Mr. CHENEY.
Mr BETHUNE in two instances.
Mr. FINDLEY in two instances.
Mr. GOLDWATER.
Mr. YOUNG of Alaska.,
Mr. SOLOMON.
Mr. EMERY.
stances.
Mr. MCCLORY.
Mr. ASHBROOK in three instances.
Mr. RITTER.
(The following- Members (at the re-
quest of Mr. MAVROULES) and to include
extraneous material : )
Mr. BEARD of Rhode Island.
Mr. SOLARZ.
Mr. GUARINI in four instances.
Mr. FOWLER.
Mr. MINETA.
Mr. CARR.
Mr. EDGAR.
Mr. GORE.
Mr. VANIK.
Mr. BEILENSON.
Mr. McDONALD in five instances.
Mr. SHELBY in two instances.
Mr. LELAND.
Mr. RODINO in two instances.
Mr. FISHER in two instances.
Mrs. SPELLMAN.
Mr. SIMON.
Mrs. SCHROEDER in two instances.
Mr. MOORHEAD of Pennsylvania in two
instances.
Mr. MOFFETT.
Mr. WOLFF.
Ms. MIKULSKI.
Mr. BALDUS.
Mr. DRINAN.
Mr. HARKIN.
Mr. ZEFERETTI.
Mr. HANLEY In two. instances.
ENROLLED BILL SIGNED
Mr. THOMPSON, from the Commit-
tee on House Administration, reported
that that committee had examined and
found truly a enrolled bill of the House
of the following title, which was there-
upon signed by the Speaker:
H.R. 111. An act to provide for the opera-
tion and maintenance of the Panama Canal
under the Panama Canal Treaty of 1977, and
for other purposes.
SENATE ENROLLED BILLS AND
JOINT RESOLUTION SIGNED
The SPEAKER announced his signa-
ture to enrolled bills and Joint resolu-
tion of the Senate of the following titles:
S. 210. An act to establish a Department of
Education, and for other purposes;
S. 721. An act to amend the Civil Rights
Act of 1957 to authorize appropriations for
the U.S. Commission on Civil Rights for fiscal
year 1980; and
S. J. Res. 105. Joint resolution to provide
for a temporary extension of certain Federal
Housing Administration authorities, and for .
other purposes.
BILL PRESENTED TO -THE
PRESIDENT
Mr. THOMPSON, from the Committee
on House Administration, reported that
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