EXPORT ADMINISTRATION ACT AMENDMENTS OF 1979

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September 21, 1979
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H 8300 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 CONGRESSIONAL RECORD-HOUSE September 21, 1979 cide they do not want any pay raise for r anybody, they have that opportunity, What I want to impress upon the Mem- bers is the necessity of adopting the con- tinuing resolution. There are three mat- ters which absolutely must be adopted before October 1 or this Government be- gins to falter. Let us not fall by the e weight of our intransigence. One of those that must be adopted by that date is this continuing resolution Another is the question of the debt limit g The third is the need for implementing legislation to permit the United States to continue to exercise an influence and protect the rights and interests of the e United States in the operation of the Panama Canal. k Unless those three are passed, I think this House has' an obligation to the peo- ple of the United States to forego the e home district work period scheduled for the early part of October and to remain n on the job until we have done those three ee things that are so essential to the or- derly continuance of this Government. So I urge the Members to vote for this rule, and when this continuing resolu- rs tion comes before us and the Members y have worked their will, whatever it may be, to support the continuing resolution. I urge them then to support the exten- sion of the debt limit, and finally to sup- port the implementing legislation tha t permits the United States to have a con- tinuing hand until the year 2000 In the operation of the Panama Canal; Until it those things are done, we give a poor account of ourselves. I have greater faith in the Members of this House than to believe that we will go home having failed in our duty to the Nation and to the people who sent us here to be their stewards. Mr. LATTA. Mr. Speaker, I yield my- self 2 minutes. Mr. LATTA. I yield to the gentleman from Maryland. Mr. BAUMAN. Mr. Speaker, a member of the staff just informed me that If this rule is adopted today, and I have no objection to the rule, that we-may not take up the continuing resolution and consider it today. Is that true? The SPEAKER. I would respond to the gentleman that the answer is in the af- firmative. The continuing resolution will be brought up on Tuesday. Mr. BAUMAN. On Tuesday? The SPEAKER. Yes. We will go right into Mr. BINGHAM'S resolution and I hope we can complete it today. Mr. BAUMAN. If the gentleman will yield further, if we are not going to bring up the continuing resolution, then what is all of this talk about the rush to pass all of these things? Mr. LATTA. Let me say to the gentle- man man that that is news to me. Mr. BAUMAN. I think the I House ought to at least know what is going on, it seems to me. Mr. LATTA. Mr. Speaker, I have no further requests for time. Mr. MOAKLEY. Mr. Speaker, I move he previous question on the resolution. The previous question was ordered. . The resolution was agreed to. A motion to reconsider was laid on the le. ANNOUNCEMENT BY THE SPEAKER The SPEAKER. Before the Chair rec- ognizes the gentleman from New York (Mr. BINGHAM) I would say I hope the Members appreciate that the House will adjourn at 1 o'clock today, in view of the fact that beginning at 5 o'clock it is a eligious holiday for some people and e Members. In order to give them an rtunity to get to their homes, the e will adjourn at 1 o'clock. listened to my good friend from Texas. 1\ Let me say that I join with him in urging the House to adopt this rule and adopt it very quickly. I do not know of a fairer rule that could be reported out by the Rules Com- mittee for all sides than this rule we now have under consideration, because it is a completely open rule on the subject of compensation. Whether you are for or against a pay raise, this is taken care of. There is no use, as we have done many, many times in the past in this House, in wasting valuable time of this House in having a rollcall on a rule that is open to everybody. I think it is high time we stopped wasting time and we get on with the business of the House. There are two other things that the distinguished majority leader men- tioned about the work of this House. We could expedite it as far as the budget is concerned by reducing the budget that was rejected by the House, and we could also take care of that debt limit by taking out the Gephardt amendment that I am sure caused a lot of contro- versy. We could reduce the amount, 'and we could pass it very rapidly. Mr. BAUMAN. Mr. Speaker, will the gentleman yield? ^ 11.10 EXPORT ADMINISTRATION ACT AMENDMENTS OF 1979 Mr. BINGHAM. Mr. Speaker, I move at the House resolve itself into the C4bmrnittee 'of the Whole House on the State of the Union for the further con- sideration of the bill (H.R. 4034) to pro- vide for 'ontinuation of authority to regulate exports, and for other purposes. The SPEAKER. The question is on the motion offered by the gentleman from New York (Mr. BINGHAM). The motion was agreed to. IN THE COMMITTEE OF THE WHOLE Accordingly the House resolved itself into the Committee of the Whole House on the State of the Union for the further consideration of the bill H.R. 4034, with Mr. YATES, Chairman pro tempore, in the chair. The Clerk read the title of the bill. The CHAIRMAN pro tempore. When the Committee of the Whole rose on Tuesday, September 18, 1979, the Clerk had read through line 24 on page 49. Are there further amendments to sec- tion 113? Mr. BINGHAM. Mr. Chairman, I move to strike the last word. (Mr. BINGHAM asked and was given permission to revise and extend his remarks.) Mr. BINGHAM. Mr. Chairman, once again I appeal to the Members to be cooperative. It is essential that we finish this bill by 1 o'clock today. Otherwise, we are going to get completely shunted aside next week by the obvious problems that face us. I can assure Members that as manager of the bill I will be as con- ciliatory as possible In accepting amend- ments that I may not be too happy with, but that I think we can work out in conference. I have already worked out one such arrangement with Mr. DosrtAN, and I think I can work out such an arrange- ment with Mr. MILLER. We will have the Dannemeyer amendment which deserves discussion, but in view of the fact that I think the outcome of that amendment is perfectly clear and the gentleman can- not prevail with that amendment, I think that after an initial speech of 5 min- utes in favor and an opposing speech by, presumably, Mr. MCKINNEY in opposi- tion, there should be a limitation of time of 10 or 15 minutes in which Members can get permission to revise and extend their remarks and get on the record in opposition to or in favor of that amend- ment. There is the amendment to be offered by Mr. PRYOR, with a substitute to be offered by Mr. DORNAN. That may take about a half hour in into. I think we can finish this, but it will take a maximum,, of cooperation from the Members. I would urge the Members, please, unless it is absolutely necessary, not to seek record votes. If we can keep the Members on the floor and proceed by voting by division, I think we,can conclude. AMENDMENT OFFERED BY MR. DORNAN Mr. DORNAN. Mr. Chairman, I offer an amendment. The clerk read as follows: Amendment offered by Mr. DORNAN: Page 49, line 13, insert "(1)" after "(b)". Page 49, insert the following after line 20: "(2) Any person who is issued a validated license under this act for the export of any good or technology to a controlled country and who, with knowledge that such a good or technology is being used by such con- trolled country for military or intelligence- gathering purposes willfully fails to report such use to the Secretary of Defense, shall be fined the sum equal to the amount of gross profit accrued from the sale of the item or $100,000, whichever is greater, or imprisoned for not more than 5 years, or both. For purposes of this paragraph, "con- trolled country" means any Communist country" as defined in section 620(f) of the "Foreign Assistance Act of 1961." Page 49, line 20. strike out the closed quotation marks and final period. Mr. DORNAN (during the reading). Mr. Chairman, I ask unanimous con- sent that the amendment be considered as read and printed in the RECORD. The CHAIRMAN pro tempore. Is there objection to the request of the gen- tleman from California? Mr. KINDNESS. Mr. Chairman, re- serving the right to object, could we know the subject matter of the amendment before it is agreed to? Mr. DORNAN. Mr. Chairman, I did Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 ` September 219 1979 CONG1RIESS ONAIL RECORD - HOUSE . IBI 8299 how they feel about the pay raise. from Texas, George Mahon, I succeeded I want the Members to know that this Whether they like it or not, they owe it as chairman of the Committee on Ap- proposition before you is whether the to this country, to the aged and sick and propriations. high-level employees and all of the de- the weak, to the educational programs, Realizing the dangerous situation that partments get 12.9 percent in cash and to the defense of our Nation, to trans- we faced, I had a study made. you get a right of action, or whether you portation programs, and so forth, to pass That study shows that 58 and a frac- scale them all back to 5.5. this continuing resolution. tion percent of the laws on the statute May I say that one of the national net- Mr. LATTA. Mr. Speaker, I have no books provide for built-in escalation of works called me this morning at 7:15 and further requests for time. the programs covered. That is, as the wanted 2 minutes of taped statement h' t minutes to the gentleman from New York (Mr. PEYSER). (Mr. PEYSER asked and was given permission to revise and extend his remarks.) [Mr. PEYSER addressed the House. His remarks will appear hereafter in the Extensions of Remarks.] Mr. MOAKLEY. Mr. Speaker, at this time I yield 10 minutes to the chairman of the Appropriations Committee, the gertleman from Mississippi (Mr. WHIT- TEN). (Mr. WHITTEN asked and was given permission to revise and extend his re- marks.) Mr. WHITTEN. Mr. Speaker, inflation is our worst problem and we cannot con- tinue to feed it by automatically increas- ing salaries and other programs in order to keep up with inflation even though the law requires it. It is like trying to put out a fire with gasoline. For this reason, I am recommending that the executive pay increases of 12.9 percent that senior Federal officials and Members of Congress would automati- cally receive be decreased to 5.5 percent. This is less than half the amount senior Federal officials and Members of Con- gress are entitled to receive because of previous laws and, most importantly, less than half the rate of inflation. Unfortunately, laws have been enacted In the past which create legal entitle- ments for some 58 percent of Federal programs. These programs are tied to the rate of inflation-much like many labor contracts. In a time of inflation, this only causes greater problems. I believe Congress should set an ex- ample and therefore I believe the de- crease in pay from 12.9 to 5.5 percent is appropriate. If all sectors of our coun- try--government, labor, and industry- would take this step, I believe that over a period of time it would greatly con- tribute to slowing down-and eventually stopping further inflation. The limitation of 5.5 percent repre- sents a significantly sharp decrease and amounts to only about one-fourth to one-third of the actual rate of inflation during this period. It is hoped that this example will be followed by other parts of the Federal Government, private in- dustry, and State and local government. Unless we slow down, we face disastrous inflation which has wrecked the economy of the other nations Mr. Speaker, I am going to ask my colleagues, maybe not at the moment, but to please read in House Joint Resolu- tion 404, the continuing resolution, on page 5, the middle paragraph, beginning on line 10, maybe not at the moment, be- cause I shall explain it here. As all of the Members know, through their good graces and with the retire- ment of my good friend, the gentleman is cost of living or inflation proceeds, the about what this is about, about amount in the law goes up with it. salary raise. I said, well, that is what Unfortunately, in my opinion, high- most people say, a salary raise. Actually level Federal employees are included, as it is an effort to hold down a salary in- well as retired Members of,Congress. crease that is automatic under the law to Might I say that my fears for inflation 5.5 percent in an effort to phase it out. are well founded, because that study I want into these other matters. When shows that since 1967, the dollar has lost I got through he said, "I agree with you." 50 percent of its purchasing power. Each That was fro in one of the national net- day we read where the world is more and works. He said, "Do you hope to pass it?" more afraid of the dollar. I said I did not know, but I have felt that Members who retired previously have it would have passed' all along if the received, because of this escalated clause Membership had understood that we since 1967, by simple arithmetic, a 94.7 were voting, when we voted "no" on the percent increase in his retirement. Com- efforts to cut back, we were voting "yes" pounded, he has received 124.4 percent in on paying the 12.9 to all high-level em- increases under that built-in escalator ployees, because It is automatic and the clause. appropriation bills have been passed that Now, those Members-and I want the provide for it. Members to listen to me-it could be said I want to tell my colleagues what the that those Members who have been vot- facts are. Those are the facts. You could ing against a 7 percent or 5.5 percent not be a bit more afraid of inflation than limitation in pay have been voting for a I am. 12.9 percent increase on all these high- But do not make the mistake here of level employees in Government, except knowingly voting for a 12.9-percent in- those on Capitol Hill. This is because in crease in cash to everybody in govern- the absence of a general Government- ment except Capitol Hill. Here again you wide restriction the entitlement of 12.9 would have a right of action, but -no percent is the only provision governing money. the actual amount of pay. So I want to just take this time to ex- On Capitol Hill, because we turned plain what is involved here, and I would down the legislative bill from which ours hope instead of amendments being of- and other's pay comes, we will have an fered to put anybody on the spot, or to entitlement, but no money. take anybody off the spot, I wish we What I am afraid of-and I want the could vote on the provisions in this, yes Members to listen to me on this-I am or no, and if you understand it I think saying to'the Members, when the dollar you will vote to support this provision be- goes down 50 percent since 1967, we are cause it will be a step toward repealing or in dangerous times. scaling back this built-in escalating On this budget, and we are all for it, ? clause that is in 58 percent of our laws. balancing means balanced; we cannot I say we as a Congress are going to pay an easy, cheap dollar back with a have to tangle with that along the line if hard-to-get dollar. Income and outgo we are going to level off and save our must balance; neither can it go down country. ? sharply without affecting the other. Mr. MOAKLEY. Mr. Speaker, I yield I want to tell my colleagues our com- 3 minutes to the distinguished majority leader, the gentleman from Texas (Mr. mittee has recommended and the Mem- bers have adopted 11 bills, which in total My GHT) W . WRIGHT. Mr. 'Speaker, I think are below the President's budget, not- every. Me r can withstanding all of these factors. t on. There Member no o reason for any this Member So we have tried. The first bill we had to oppose pose t rote e for for thi thib ewe recaptured $723 billion that had been this rule. It its en- we before. tirely open rule which permits t th h e House to work its will, whatever it may be, on 0 1100 the subject of legislative and adminis- Not only am I afraid of inflation, but I trative pay scales. With rare exceptions, am afraid we will create a disastrous the same applies to? the other subjects situation by just trying to reduce-we involved in the continuing resolution. have got to keep income up-so some bal- Surely nobody can quarrel with that. It ance is required. Is a democratic procedure. I realize we cannot cut back too I shall not attempt to inflict upon my quickly. I say to my good friends on the colleagues any opinion with respect to Budget Committee, and they did a whale the question of a pay raise for Members of a good job, I say to them, and to you, ? of Congress or for those who have been and to everybody else, we have got to go at equivalent pay grades in the admin- careful on this.thing because we face a istrative branch of Government. Mem- balancing situation. If we make the dol- bers may do whatever they wish about lar hard to get we cannot pay it back, so that. we crash. if we do not stop spending we But that is the point of this rule. It crash. But keep in mind that it is a two- gives the membership that opportunity. edged sword, If the Members of the House should de- Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 H 8302 CONGRESSIONAL RECORD-HOUSE September 21, 1979 committee or subcommittee of Congress of Congress v. Kreps (574 F. 2d 624 (D.C. appropriate jurisdiction. No such committee Cir. 1978) ), that section 7(c) of the Ex- or subcommittee shall disclose any informa- port Administration Act, as amended, tion obtained under this Act or previous Acts does not completely exempt all export regarding the control of exports which is records from the Freedom of Informa- submitted on a confidential basis unless the reco reco Act, under exemption 3. full committee determines that the with-tion holding thereof is contrary to the national Nonetheless, all eight other exemp- interest.".". tions of the Freedom of Information Act p 1120 would continue to apply such as: Exemp- (Mr. DORNAN asked and was given tion 1, national defense and foreign permission to revise and extend his re- policy; exemption 4, trade secrets and, marks.) commercial or financial information; Mr. DORNAN. Mr. Chairman, as re- and exemption 5, interagency or intra- ported by the Committee on Foreign Af- agency memorandum or letters. The fairs, H.R. 4035 would exempt Commerce Commerce Department did not seek a Department records in the export con- writ of certiorari to obtain U.S. Supreme trol area from public disclosure under Court review of this case. This case was the Freedom of Information Act. My properly decided. amendment would eliminate this unwar- To reiterate, under current law, infor- ranted blanket exemption, which is be- mation and records obtained pursuant ing urged upon us by the Commerce De- to "the Export Administraaion Act" are partment, and allow public scrutiny of not blanketly exempted -from disclosure. the Commerce Department's administra- But neither are they disclosable without tion of our Nation's export restrictions. restriction. Simply put, they are avail- continue current law, under the Export Administration Act of 1969, as amended in 1977, and as interpreted by the courts. In fact, except for minor changes, the exact language of current law is incor- porated into the bill by my amendment. First, I would adopt the suggestion urged by the Committee on Foreign Af- fairs to broaden congressional access to export administration records. As some may remember, prior to 1977, the Com- merce. Department interpreted the con- fidentiality section of the Export Admin- istration Act to bar disclosure of infor- mation from Congress itself. The Con- gress took action in the Export Adminis- tration Act amendments of 1977 to cor- rect the Department of Commerce's creative interpretation of the 1969 act, by providing that "nothing In this act shall be ? construed as authorizing the withholding of information from Con- gress * * * " At the time, everyone thought that this language would make the law clear. But the Commerce De- partment has taken the position, which it takes to this day, that despite the clear legislative history to the contrary, this 1977 amendment applies only prospec- tively and does not require provision of information to the Congress with respect to license applications pending on the effective date of the 1977 amendment. Now, in 1979, we must try for the second time to amend a seemingly un- ambiguous law, with our fingers crossed, hoping that this time the Commerce Department will not devise still another spurious basis on which to deny congres- sional requests for export information. By providing that disclosures shall relate to all information obtained "at any time under this act or previous acts." I hope the Congress will win the final battle for access to information against a recal- citrant Commerce Department. It should also be realized that there has been litigation under the Freedom of Information Act in Federal courts by parties seeking access to information ac- quired under the Export Administration Act. It has now been decided by the U.S. Court of Appeals for the District of Co- lumbia, in the case of American Jewish Act except where an exemption applies, as determined on a case-by-case basis. This is current law, and my amendment continues current law. Exports are not unlike thousands of other business transactions -in which Government collects certain informa- tion from business in order to make proper decisions. To protect business in- terests, the Freedom of Information Act exempts from public disclosure (exemp- tion No. 4) "trade secrets and commer- cial or financial information obtained from a person and privileged or confiden- tial." In this way, Government decision- making continues to be subject to public review, under "the Freedom of Informa- tion Act," but the interests of the compa- nies submitting information are properly protected. The Freedom of Information Act should apply to export transactions as well. The CHAIRMAN pro tempore. The time of the gentleman has expired. Mr. DORNAN. Mr. Chairman, I ask unanimous consent that I be allowed to continue for 2 additional minutes. Mr. BINGHAM. Reserving the right to object, Mr. Chairman, hereafter I am going to object to requests for additional time. Mr. Chairman, I withdraw my reserva- tion of objection. The CHAIRMAN pro tempore. With- out objection, the gentleman from Cali- fornia (Mr. DORNAN) will be allowed to continue for 2 additional minutes. There was no objection. Mr. DORNAN. Mr. Chairman, the pub- lic has a right to know about its govern- ment. As a former broadcaster, I cannot help but believe that the public values Its right to know how its government works. For example, it seems to me the American public has a right to know whether strategic materials are being shipped to Communist countries and whether these exports diminish our na- tional security. If certain exports of crit- ical American technology and goods are being used to strengthen the warmaking potential of Communist countries, as many contend, I believe the American public should be able to find out about it. Secrecy fosters suspicion and secrecy here is unnecessary. The Commerce De- partment would undoubtedly argue we should simply trust them to protect our interests, and that public scrutiny is un- necessary, but I cannot imagine that that view would sway this body. Government works best when subject to public review of its actions. The Commerce Department is no exception. Allowing public access to these records will have no impact on our national security. National defense and foreign policy matters are already exempt under the Freedom of Information Act. More- over, even in the case of U.S. trade with the Soviet Union, the Soviets already know what materials they imported from us. If the Kremlin has this information, why not allow the American people to have it? Mr. Chairman, adoption of this bill's virtual blanket exemption would signal a sharp reversal of our public policy of wider access to Government records be- ginning with the passage of the Freedom of Information Act. This act was de- signed to compel the Federal Government to become more accountable to the Amer- ican public, the ultimate judge of all Government policies, by making more information available about Government activities. But this bill's exemption has not been even considered by the Subcom- mittee on Government Information and Individual Rights of "the Committee on Government Operations," which has ju- risdiction over "the Freedom of Infor- mation Act." As I understand it, it was only proposed late in the Foreign Affairs Committee's consideration of the bill, by a Commerce Department seeking to elim- inate public scrutiny of its actions. No witnesses testified on this exemption No. 3 except for a brief reference by a Com- merce Department witness and it was never even considered by the relevant subcommittee. This exemption would constitute a significant inroad into the Congress' often-stated policy to provide for maximum public disclosure of public records. Such blanket exemptions should only, if ever, be granted after a full re- view by the committees responsible for export policy, and for "the Freedom of Information Act." This has not been done. Mr. Chairman, the only way to protect "the public's right to know" is to allow public access to these records, except where barred by the current exemptions to "the Freedom of Information Act, To create a blanket exemption would be a victory. for an executive department afraid of public review. To continue cur- rent law as my amendment does, would be a victory for the public's right to know. AMENDMENT OFFERED BY MR. PREYER AS A SUB- STITUTE FOR THE AMENDMENT OFFERED BY MR. DORNAN Mr. PREYER. Mr. Chairman, I offer an amendment as a substitute for the amendment. The Clerk read as follows: Amendment offered by Mr. PREYER as a substitute for the amendment offered by Mr. DoRNAN: Page 50, strike out line 2 and all that follows through page 51, line 7, and in- sert in lieu thereof the following: . Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 Approved For Release 2008/10/27: CIA-RDP85-000038000100030007-7 September 21, 1979 CONGRESSIONAL RECORD-HOUSE Sec. 114. Subsection (c) of section 12 of the Export Administration Act of '1969, as such section is redesignated by section 104 (a) of this Act, is amended to read as fol- lows: "(c) (1) Except as otherwise provided by the third sentence of section 8(b) (2) and by section 11(c) (2) (C) of this Act, information obtained under this Act on or before June 80, 1980, which is deemed confidential or with reference to which a request for confidential treatment is made by the person furnishing such information, shall be exempt from dis- closure under section 552 of title .5, United States Code, and such information shall not be published or disclosed unless the Secre- tary determines that the withholding thereof is contrary to the national interest. '% "(2) Any department or agency exercising any function under this Act may withhold information obtained under this Act after June 30, 1980, only to the extent permitted by statute, except that information concern- ing licensing of exports filed -under this Act shall be withheld from public disclosure un- less the release of such information is deter- mined by the head of such department or agency to be in the national interest. "(3) Nothing in this Act shall be construed as authorizing the withholding of informa- tion from Congress, and all information ob- tained 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 avail- able upon request to any committee or sub- committee of Congress of appropriate juris- diction. No such committee or subcommitee shall disclose any information obtained un- der this Act or previous Acts regarding the control of exports which is submitted oil a confidential basis unless the full committee determines that the withholding thereof is contrary to the national Interest.". Page 60, strike out lines 1 through 7 and redesignate subsequent paragraphs accord- ingly. Mr. PREYER (during the reading). Mr. Chairman, I ask unanimous consent that the amendment be considered as read and printed in the RECORD. The CHAIRMAN pro tempore. Is there objection to the request of the gentleman from North Carolina? There was no objection. Mr. PREYER. Mr. Chairman, I have a substitute for the Doman amendment at the desk. I ask unanimous consent that the amendment be considered as read. I offer the amendment because I be- lieve that the provision now in the bill and the Dornan amendment will do un- necessary damage to the concept of ac- cess to properly disclosable information. As reported, section 114 would totally and permanently exempt from disclosure a broad category of information relating to exports. Chiefly at issue here is the information reported on the Commerce Department document known as the "Shipper's Export Declaration" or SED. An SED must be filed for each export from this country. Under the bill, none of the data on an SED would ever be made public. This blanket exemption is unnecessary and unwise for two major rtasOns. First, some of the information that the bill seeks to protect is not confidential in eny way. No one disputes that some of this information can be obtained from several sources. Why should we prohibit one agency from disclosing information that is already available from another agency or from Public sources? Second, export information which is legitimately. confidential already-receives a full measure of protection under the Freedom of Information Act. There is no need to provide additional protection under other laws. H.R. 4034 would lock up much ex= port information forever. However, my substitute does not go to the other ex- treme and make information automati- cally available. My amendment is a' compromise, incorporating both Free- dom of Information principles .as well as the practical needs of the Commerce Department and exporters. Under my amendment, export data already filed with the Department of Commerce would continue to have the protection that Commerce seeks. In addition, this pro- tection would extend to information col- lected during the rest of this year. Thus, no information already collected with an expectation of confidentiality would be disclosed under my amendment. Fur- ther, everyone would have a transition period of almost 6 months to prepare The new rules that 'would take effect on June 30 of next year are very simple and very familiar. Documents filed after that date would be subject to the Free- dom of Information Act. The act pro- vides sufficient protection for confiden- tial business data. The fourth exemption specifically covers trade 'secrets and con- fidential commercial information. Le- gitimate business .confidentiality will not be breached. There are additional reasons why.it is important that my amendment be adopted. They are inflation and the bal- ance of payments. As early as 1976, the Treasury Depart- ment recognized that increased access to export information would lead to better and cheaper services in 'the export in- dustry. In turn, this makes U.S. export- ers more competitive with foreign sup- pliers. The Treasury Department amended its regulations in 1976 to make available from Customs Service docu- ments much of the same information which is at issue here. My amendment is necessary because the Treasury regulations are not univer- sally followed and much data which should be public is not. Because Com- merce Department regulations require that the shipper's export declaration be fully and accurately completed, the problems of gathering information from Customs documents will be avoided. Current disclosure practices for some export related information would not be affected by my amendment. Where ex- port licenses are required, my amend- ment allows for full protection of bon- .fidential information related to the li- cense application. In this regard, my amendment does not differ from the bill. For the publication of export license in- formation, my intent is identical to the intent reflected in the report of the Com- mittee on Foreign Affairs. Also, my amendment does not differ from the bill with regard to the disclosure of boycott data. Current disclosure practice for this data will prevail. In conclusion, let me note that the free flow of information is essential to H 8303 a free market economy. We have a chance here to let the information work for us by lowering costs and helping the dollar. This is why so many busi- nesses are in favor of the publication of export information..I urge .my colleagues to support it as well. ^ 1130 Mr. FASCELL. Mr. Chairman, would the gentleman yield on that point? Mr. PREYER. I am glad to 'yield. Mr. FASCELL. As .I -gather what the gentleman is saying, the amendment which the gentleman proposes would make -public confidential business infor- mation. . The CHAIRMAN. The time of the gen- tleman from North Carolina (Mr. PREYER) has expired. Mr. FASCELL. Mr. Chairman, 'I move to strike the requisite number of words. Mr. Chairman, I rise in support of the substitute. The Preyer substitute is a well balanced approach that will allow for the orderly release of information. At the same time, It will also protect against the release of confidential busi- ness information or information related to our national security. Export 'license applications, most of them covering items controlled for reasons of foreign policy or national security, are specifi- cally excluded from disclosure under this amendment. Other information submit- ted by exporters may also be withheld under the Preyer amendment where it meets the standard for protection of confidential commercial information un- der exemption 4 of the Freedom of In- formation Act. The current language of the bill re- stricts the 'disclosure .of export informa- tion too narrowly. It is generally agreed that much of the export data supplied by shippers is not secret, so there is no reason to create a general exemption for it. Moreover, having some export data available-such as who is shipping what products to which countries-should help spur export competition. It will enable exporters, shippers, and trans- porters to compete more effectively in world markets. The Preyer amendment will permit these benefits, withoutviolat- Ing 'legitimate business confidentiality. The amendment also provides for a rather long transition' period until De- cember 31,1979. This will allow adequate time for the Department of Commerce and shippers to make necessary prepara- tion for release under the new rules. I believe this amendment balances a num- ber of competing interests in a fair and evenhanded way. I urge the adoption of the substitute. I yield to the gentleman from North Carolina to answer a question that I am going to propound here. I gather what the gentleman is. saying here is that the principal amendment for which the gentleman proposes this sub- stitute'-would make public confidential business information which is now in the export license application; is that what the gentleman said? Mr. PREYER. My amendment would make available information that relates to export information. This is the in- formation. that shippers want to know. Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 H 8304 CONGRESSIONAL RECORD-HOUSE. September 21, 1979 Mr. FASCELL. I was talking about the principal amendment. Mr. PREYER. Oh, I am sorry. Mr. FASCELL. The Dornan amend- ment. Mr. PREYER. The Dornan amend- ment makes available information from the licensing process. Mr. FASCELL. That is what I thought the gentleman said. Mr. PREYER. it involves much confi- dential business information. Mr. FASCELL. Business information, yes. Mr. PREYER. Yes, which should not be released. Mr. FASCELL. And which heretofore has not been released. Mr. PREYER. Right. Mr. FASCELL. And generally has been accepted as a trade matter which should be kept confidential. Mr. PREYER. The gentleman is cor- rect. This would be a broad new expan- sion, a new doctrine. Mr. DORNAN. Mr. Chairman, will the gentleman yield? Mr. FASCELL. I yield to the gentleman from California. Mr. DORNAN. Mr. Chairman, I do not mean to disagree-actually, I do mean to disagree. I am proposing that we keep current law. Current law now is that this infor- mation is available under the Freedom of Information Act. Mr. BINGHAM. Mr. Chairman, will the gentleman yield? Mr. FASCELL. I yield to the chairman. Mr. BINGHAM. The problem is that the current law turned out to be un- satisfactory in the light of the Freedom of Information Act. The gentleman in' the well is probably the expert on this subject. ~ The reason the current law is unsatis- factory is that the courts have inter- preted the Freedom of Information Act to in effect overrule the intention of the Congress when it extended the Export Administration Act in 1977. The gentleman is technically correct that the amendment will leave the law as it is, but it does not meet the problem. Mr. FASCELL. Mr. Chairman, I thank the gentleman for making that explana- tion. That is the reason I rose, because it seems to me that what we were trying to deal with is to correct a very difficult situation, because the present law was not adequate in balancing off the interest of the right to know and the freedom of information and still protect business confidentiality. It seems, to me, quite clear that the substitute amendment of the gentleman from North Carolina does that. Therefore, Mr. Chairman, I rise in strong support of the substitute and urge my colleagues to. support it. (Mr. FASCELL asked and was given permission to revise and extend his re- marks.) Mr. QUAYLE. Mr. Chairman, will the gentleman yield? Mr. FASCELL. Yes; I would be delighted to yield. Mr. QUAYLE. Mr. Chairman, I thank the gentleman from Florida. I commend the gentleman from North Carolina, who has been an expert and a leader in this field of the Freedom of Information Act and serves as its chair- man. I was fortunate enough in the last Congress to serve on that subcommittee. I have a couple questions. First of all, on that date of June, 1980, what about all the past information tl}at has been compiled up to that? Are we putting a freeze on secrecy on all that information up to June of 1980? Mr. PREYER. Mr. Chairman, if the gentleman from Florida wishes to yield to me to answer, I would be glad to re- spond. I do not believe I have the time. Mr. FASCELL. I was not paying that close attention. Mr. PREYER. The gentleman from' Florida has the time. Mr. QUAYLE. The gentleman from Florida has the time. Mr. FASCELL. I was going to say, I yield to the gentleman from North Carolina. Mr. PREYER. Mr. Chairman, the answer to the gentleman's question is yes. What this bill does is to grandfather in confidentiality for information that has been received under a pledge of con- fidentiality by the Commerce Depart- ment. We do not think it is fair to say retroactively that information which businesses gave with the understanding that it was confidential should be now open and available. My amendment does freeze that information; its effect begins as of June 30, 1980, and in the future. Mr. QUAYLE. Mr. Chairman, would the gentleman from Florida, who is con- trolling the time, be good enough to yield further? Mr. FASCELL. I would be delighted to yield. Mr. QUAYLE. Mr. Chairman, r just would like to follow up on that one point of confidentiality. I was under the im- pression that. these companies furnish that information on the basis of confi- dentiality, because it says confidential on the form, but it also says within the pro- vision of section 7(c) of the Export Ad- ministration Act, but subsequent to that a court has found out that it is not constitutional. We are not getting into trade secrets. I do not like to get off on that, because I do not want that information. I think it is a tough area and I commend the gen- tleman for his leadership on this; but I am a little bit concerned and the gentle- man from Florida has been a leader on this, too. I am concerned about putting a lid on all past information, just putting an arbitrary clamp on June 1980. That bothers me. The CHAIRMAN. The time of the gen- tleman from Florida (Mr. FASCELL) has again expired. (At the request of Mr. PREYER and by unanimous consent, Mr. FASCELL was allowed to proceed for 1 additional minute.) Mr. PREYER. Mr. Chairman, if the gentleman will yield further, there is considerable confusion about the existing law in this area. This bill makes a spe- cific exemption as to pending lawsuits. We do not try to clarify present law which frankly is so confused that I do not think we can ever come to grips with it. What the bill does do is set out the law clearly from June 30, 1980, on. The rights in the future, I think, will be well under- stood. Mr. FASCELL.-Mr. Chairman, one of . the problems and the reason for the date is that the information asks names of customers and prices of goods which is and should be trade secrets. That is the problem and that is the reason for the cutoff. Mr. QUAYLE. Mr. Chairman, would the gentleman yield, whoever has t11e time? Mr. FASCELL. I yield to the gentle- man. Mr. QUAYLE. If price and value were taken out instead of parties having to name the country, would the gentleman, change his mind as far as that informa- tion being released? The CHAIRMAN. The time of the gen- tleman from Florida (Mr. FASCELL) has again expired. (At the request of Mr. QUAYLE, and by unanimous consent, W. FASCELL was al- lowed to proceed for 30 additional sec- onds.) Mr. FASCELL. Mr. Chairman, I think it generally is released. Mr. QUAYLE.Not according to this amendment, I do not think so. ^ 1140 Mr. ALEXANDER. Mr. Chairman, I move to strike the requisite number of words. (Mr. ALEXANDER asked and was given permission to revise and extend his remarks.) Mr. ALEXANDER. Mr. Chairman, I take this time to rise in support of the substitute offered by the gentleman from North Carolina (Mr. PREYER), and I do so as a member of the President's Export Council. I wish to advise the Members present today that the President's Export Coun- cil met just yesterday and considered the problem which is raised by the amend- ment offered by the gentleman from California (Mr. DoRNAN). If the amend- ment offered by the gentleman from California (Mr. DORNAN) were adopted, it would in effect immobilize the efforts of the President's Export Council to for- mulate an aggressive export policy that will enhance the position of this country to trade with foreign nations and with foreign-customers. The President's Export Council adopt- ed unanimously a resolution to support the language offered by the gentleman from North Carolina (Mr. PREYER), which language is substantially the same as that contained in a Senate bill which has already been adopted. Mr. Chairman, I urge my colleagues who are concerned about the formula- tion of an export policy to enhance the position of this country to trade with foreign nations to support the substitute offered by the gentleman from North Carolina (Mr. PREYER), and I do so as a spokesman for the President's Export Council which has adopted a resolution in support of that amendment. Mr. Chairman, the Export Adminis- tration Act legislation is aimed at help- ing exporters eliminate unnecessary red- tape and confusion in obtaining export Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 September 21, 1979 CONGRESSIONAL RECORD -HOUSE licenses. The bill is a necessary first step in allowing Congress a role in developing a national export strategy. However, the language of the original Export Administratidil Act is not suffi- ciently precise to meet the standards es- tablished by the Freedom of Information Act (FOIA) in protecting the confiden- tiality of the shipper export declarations (SED's). At the time, litigation is pending to sin access to individual SED's under the - reedom of Information Act. Mr. Chairman, it is important that ex- porters be allowed confidentiality on ,their SED's. The data disclosed on SED's includes confidential business informa- tion in which disclosure to competitors would be harmful. Foreign- competitors would be especially benefited because they would not have similar vulnerabil- ity. Under existing Federal law and regu- lations, exporters are required to file a SED for each merchandise shipment ex- ported from the United States. The SED covers 20 items of information concern- ing the details of the particular export transaction. Among other things, a SED includes the name of the exporter, net quantity, value of the shipment, shipping weight, date exported, et cetera. The confidentiality issue is not an at- tempt to skirt national security policy or the critical technology issue; it is an attempt to protect the integrity of the merchant-buyer relationship. If Census is to continue to receive information on a scale sufficient to the demands for sta- tistical data, it must be widely perceived as treating all data it receives confiden- tially. The United States needs to be protect. ing and encouraging the export of Amer- ican goods and services, not hindering those companies trying to gain access to markets. The Preyer amendment would retain confidentiality of SED's until June 30, 1980. In order that my colleagues can more fully' understand the SED issue, the following prepared by the Caterpillar Tractor Co. should prove to be useful. The President's Export Council, of which I am a member, has also endorsed the confidentiality of SED's. I urge my colleagues to support the Preyer amendment. The material follows: CATERPILLAR TRACTOR CO.;. 'Peoria, 111. EXPORT ADMINISTRATION ACT AND THE CONPIDRNTIALrrY IsMVE SUMMARY This memorandum states Caterpillar's concerns with the possible public release of Shipper's Export Declarations (BEDs), to- gether with the company's views as to why the Export Administration Act should be amended to ensure that BEDS will remain confidential in the future. Why We're Concerned. Caterpillar is a major exporter from the United States, with $2.2 billion in exports in 1978 (the second largest total of any U.S. company). Cater- pillar has filed some 40,000 SEDs annually in recent years, and disposition of these documents.-which contain important and detailed business information-is of vital concern to the company. Recent court cases indicate that existing Export Administration Act (EAA) language authorizing the Secretary of Commerce to maintain confidentiality of SEDs may not be sufficiently precise to meet standards estab- lished by the Freedom of Information Act. Exporters, such as Caterpillar, could be faced with the disclosure of valuable com- mercial information contained in BEDS, revelation of which would strengthen the position of competitor companies. All. com- petitors, U.S. and foreign, could benefit from public disclosure of BEDs filed by Cater- pillar. Caterpillar, of course, would also gain access to information about U.S. competi- tors. The big gainers, however, would be foreign competitors. They would gain valu- able information about all U.S. exporters ... while Caterpillar and other U.S. firms would have no access to comparable infor- mation about them. Surely, no one intends this to be a result of either the Export Administration Act or the Freedom of Information Act. If U.S. ex- port performance is to be strengthened, it is important to resolve the matter of SED confidentiality in a way .that does not add still another -burden to be borne by U.S. exporters alone. That's a matter for Con- gress, not the courts, to decide. In the absence of appropriate legislative action, Caterpillar might still be able to fight disclosure of BEDS in. the courts. How- ever, such legal action would be expensive; it would consume the time of people who could better devote their efforts to expand- ing exports; and the outcome would still be uncertain. It is also possible that companies would be required to file suit or take other action on an individual basis to prevent re- lease of their BEDS, which would impose a particular burden on smaller U.S. exporters for whom the regulatory maze is already a strong discouragement to exporting. Conflict Between Freedom of Information Act and Export Administration Act. The Ex- port Administration Act gives the Secretary of Commerce authority to require such re- ports as may be necessary or appropriate to the enforcement of the Act. For census and other purposes, the Commerce Department requires the filing of a Shipper's Export Declaration with each export shipment. This document then becomes a piece of U.S. Government paper, subject to possible disclosure under the Freedom of Informa- tion Act (FOIA). The existing EAA author- izes the Secretary of Commerce to protect the confidentiality of business information obtained in reports, but courts have ruled that existing EAA language is not precise enough to meet certain FOIA standards. The issue at this point is whether the confiden- tiality directive should be maintained and clarified by revised FAA language which would bring it into line with FOIA standards. What Does a Constitutional SED Conceal From the Public? Let's begin by considering what an BED is and isn't. Each BED is a report from a single com- pany about a single export transaction. It is not an application for any kind of government action. It is not a document on the basis of which any kind of decision will be made. It does become relevant when a substantial number of such documents have been. col- lected; they then provide useful census-type information which may serve as the basis for policy studies or judgments. But a single BED has on governmental pur- pose in ordinary usage ... just as a census form for an individual household does not serve as the basis for governmental decisions, although information aggregated from such forms is important in many respects, such as apportioning seats in the House of Rep- resentatives among the states. SEDs do reveal information about indi- vidual commercial transactions. A market analyst in possession of a number of BED's filed by a company could learn much about IHI 8305 that company's customers, sales, pricing policies, business trends, dealer organization, replacement parts sales opportunities, and other information. Other companies with ac- cess to such information could use it to sig- nificant competitive advantage. They could more carefully target market development efforts, identify potential new customers, ad- just production scheduling and inventories, adapt pricing strategies, and make countless other decisions on the basis of'hard infor- mation-where as now they must make many such decisions on the basis of estimates or guesses. A competitor, in business or politics, who knows everything you do, while you know much less about him/her, has a significant advantage. Is the Whole SED Confidential? No. Clearly some information contained on the BED form is not confidential-the name of the export- ing carrier, for example. No single piece of information on the BED if released alone, would be confidential. What is special about the BED is the detailed pic- ture it gives of a single transaction. Some Information on SEDs is Already Available Elsewhere. Some information avail- able in SEDS is also available to the public and press in other documents. Specifically, _ title 19 (customs duties) of the Code of Federal Regulations, sec. 103.11, specifies con- ditions under which information on vessel manifests may be disclosed to members of the press and to the public. Members of the public are permitted to obtain information from, but not to examine, vessel manifests. Members of the press may examine vessel manifests, and copy and' publish certain data. "Of the information and data appear- ing on outward manifests, only, the general character, destination, and quantity (or value) of the commodity, name of vessel, names of shippers, (?) and country of desti- nation may be copied and published. Where the manifests show both quantity and value, either may be copied and published, but not both in any instance." (*Shippers may re- quest that access to the name of a shipper be refused.) Some argue that such existing availability of some of the information contained in SEDs is reason to make the BED publicly available, in whole or in part. That argu- ment can be turned around: if much infor- mation is already available, why is more needed? Why put the U.S. Oobernment in the effective position of telling the world more details about its exporters and their transactions than other governments do about theirs? The "it's alreadly available" argument also reveals, however, an important additional reason for maintaining the confidentiality of SEDs. The press may now publish, from outward manifests: General character of commodities. Destination. Quantity or value (but not both). Country of destination. It has been suggested that comparable information contained in SEDs be released, and that only a few key items in the BED need be kept confidential, such as the iden- tity of consignees and the value of the ship- ment. However, If the rest of the BED is available to the public or press, it would be an easy matter to match up information from such BEDS with published information-obtained from manifests-about the same shipment. Information common to the two documents (name of vessel, destination) could be used to match up the BED with a published report based on the manifest. Information on quan- tity could then be obtained from the BED; information on value of the same shipment could be copied from the manifest. Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 H 8306 CONGRESSIONAL RECORD-HOUSE September 21, 1979 Combining two sources in this manner doing and what these corporations are correct the gentleman and say "a former could provide nearly as complete a picture SED were released. Two-part SED a Compromise Solution? A two-part SED has been proposed as a possible compromise. A precedent is found in the two- part form prescribed for boycott reports in another section of the EAA. We don't think this is a good solution. First, it would inevitably add to the paper- work burden of filling out and filing SEDs. Caterpillar alone files over 40,000 such docu- ments annually, and administrative incon- venience is a significant argument against complicating this form unless there is a com- pelling reason to do so. We simply don't need more governmental paperwork. Second, the basic purpose of the boycott reports-cited as a precedent for the two- part form-is to gather information about boycott requests. Take away the confidential business information from the boycott re- port form, and the report still serves its basic purpose of indicating the nature and value of boycott requests received by U.S. exporters. Take away the confidential business in- formation from the SED, and nothing of im- portance is left. (It should also be noted that the SED calls.for more detailed information. There is no reference anywhere in the boy- cott form to consignees, .for example.) Thus, we believe-there is no valid reason for a two-part SED, and the entire document should remain confidential ... just as entire Census Bureau documents remain confiden- tial, even though telephone directors and many other publicly available documents re- peat much of the information contained In a census form. Public Enumeration of Confidential Items. If a specific enumeration of items which the Secretary of Commerce may hold confidential is to be included In the EAA, an appropriate list is contained in H.R. 4034 as reported by the Foreign Affairs Committee: Parties to .a transaction. Type of good or technology being exported. Destination. End use. Quantity. Value or price. For Caterpillar's purposes, "end use" could be dropped from this list. However, there may be other exporters for whom this is also a sensitive item. In summary, we urge the Congress, in deal- ing with this matter, to avoid the following: An BED that is subject to release in its entirety; and An SED that is released in part and that can be matched up with other publicly avail- able information about individual export transactions so as to provide a detailed pic- ture of each transaction. Both S. 737 and H.R. 4034 contain accept- able provisions on confidentiality, and Cater- pillar supports enactment of either of these provisions, or some combination of them. Mr. BROOKS. Mr. Chairman, I move. to strike the requisite number of words, and I rise in support of the substitute amendment. Mr. Chairman, I want to say that the gentleman from California (Mr. DORNAN) has a good idea. I support and under- stand his objective, but I think it is bet- ter reached and more moderately and appropriately reached by the language worked out by the gentleman from North Carolina, Judge PREYER, who has worked on this matter very-assiduously. The Freedom of Information Act is one of the most important pieces of legislation that Congress has enacted in recent years. -It stands as a monument to our belief in the idea that the people have a right to know what the Government is any legislation which tends to restrict of the Government Operations Commit- the access of the public to information tee. in the hands of their Government. I do Mr.,QUAYLE. I wish I were still there. not mean any criticism of the Commit- tee on Foreign Affairs in saying that. They have fashioned a bill dealing with the very complex question of export con- trols, in which the section the gentle- man from North Carolina seeks to amend is a minor part. And, as their report shows, they resisted an effort by the De- partment of Commerce to write a much broader exemption from the Freedom of Information Act into the bill. . I believe the language proposed in the substitute amendment offered by the gen- tleman from North Carolina (Mr. PREYER), the distinguished chairman of the Subcommittee on Government In- formation and Individual Rights, which watches over the Freedom of Informa- tion Act like a mother hen, presents a better, a more rational, a more reason- able, and a more rational, a more rea- sonable, and a more workable and feasi- ble solution to the problem that is presented .here. The Preyer substitute would pre- serve the existing protections against the release of confidential information. In fact, it would make very little dif- ference in the way the information in- volved in export transactions is sup- posed to be handled now. Mr. Chairman, if we are interested in preserving the integrity of the Freedom of Information Act, if we are interested in preserving the vitality of our corpora- tions whose exports must be licensed, and the business which seek overseas they, then we ought to support the Preyer substitute. Mrs. FENWICK. Mr. Chairman, will the gentleman yield? . Mr. BROOKS. I yield to the distin- guished gentlewoman from New Jersey. Mrs. FENWICK. Mr. Chairman, I thank my colleague for yielding. Mr. Chairman, I, too, would like to pro- tect the Freedom of Information Act, and I, too, am worried about our export trade. I would like to call the attention of the Members of the House to the fact that our exports account for less than 7 percent of our GNP. In Germany their exports are 22 percent of their GNP; in Belgium they are 45 percent of their GNP. We are losing -out in the export market. Companies are strangled by these restrictions. Mr. Chairman, I think the bill is bet- ter than the Preyer amendment, but the Preyer amendment is better than the Dornan amendment. 'We are going to kill our export trade and our small businesses that are trying to get into it. Mr. BROOKS. Mr. Chairman, I want to 'thank the gentlewoman from New Jersey (Mrs. FENwIcx) for emphasizing the importance of the Preyer amend- ment. Mr. QUAYLE. Mr.. Chairman, will the gentleman yield? Mr. BROOKS. I yield to my distin- guished friend, a great member of the committee. Mr. QUAYLE. Mr. Chairman, I might Mr. Chairman, may I ask the gentle- man, what information would be re- vealed under this substitute? Mr. BROOKS. Not any more than is released now; not confidential business secrets. Mr. QUAYLE. Would the countries that they are trading with be released, or would that be not reseased? Mr. BROOKS. They would be. Mr. QUAYLE. Mr. Chairman, that is what I am concerned about. I do not think, according to the substitute, that the countries would be released. I am concerned about that, plus putting the lid on by June 30, 1980. Those two things bother me. The gentleman knows that I support him. I support him most of the time and follow his leadership, but on this, if I would follow his leadership, I would need a couple of clarifying statements on the subject. Mr. BROOKS. Mr. Chairman, perhaps that could be found in the report. I think the gentleman understands report lan- guage. Mr. QUAYLE. Mr. Chairman, I under- stand the importance and the integrity of report language that we -so often refer to when we just do not want to put it in the bill. Mr. LAGOMARSINO. Mr. Chairman, I move to strike the requisite number of words. Mr. BINGHAM. Mr. Chairman, will the gentleman yield? Mr. LAGOMARSINO. I yield to the gentleman from New York. Mr.. BINGHAM. Mr. Chairman, I thank the gentleman for yielding. Mr. Chairman, the gentleman from California (Mr. LAGOMARSINO) should have his 5 minutes on the amendment, but after that I will ask unanimous con- sent that debate cease in 10 minutes. (Mr:.LAGOMARSINO asked and was given permission to revise and extend his remarks.) Mr. LAGOMARSINO. Mr. Chairman, I think the gentlewoman from New Jer- sey (Mrs. FENwIcx) summed this up very. well. The bill is better than the Preyer amendment, the Pryer amend- ment is better than the Dornan amend- ment, and I am not sure about what the Quayle amendment does, if the gentle- man ever offers it. I think what we did in the bill, which represents a compromise in and of itself, is s pretty good solution to a very diffi- cult problem. The Department of Com- merce and the exporting industry had asked us to clarify the law and in effect to reverse court decisions. What we did instead is this: we turned down that request. I thought,' frankly, we should go along with that request and change the law completely, but the com- mittee disagreed. 'They felt it would not be wise to grant that request, and it is the committee's intent in this provision to meet the requirements of the Freedom of Information Act by specifying the Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 September 21, 1979 CON(CRIESSJONALL RIEC?IRb-jHtOUS3 H 8307 particular types of matters which may courts in one instance have already will put the telegram in the RECORD in be withheld from disclosure. ruled they must allow, and that this bill its entirety. Section 114 of the bill we are discuss- and the Dreyer amendment, which is al- Caterpillar has always complied willingly Ing here- most the same as this bill, will ratify with Commerce Department requests for Further provides, however, That this pro- Commerce's refusal to reveal this infor- SED's and other documents, relying on the vision shall not be construed to require the mation about strategic materials and promise of confidentiality contained in the withholding of any type of information processes being shipped to unfriendly EAA and printed on each copy Of the SED which, immediately before the effective date nations, form. (SED's are shippers export declara- of these amendments, is not being withheld Somewhere in all of this no one has tions) from disclosure. The complete text of the telegram is hardly mentioned the fact that this over- as follows: This language which is in the report, turns a court decision and severely re- CATERPILLAR TRACTOR CO., continues: stricts the Freedom of Information Act. May 1, 1979. The committee specifically intends that I cannot understand why that Is in the Hon. ROBERT J. LAGOMARSINO, the information currently published in the best interest of this country. House of Representatives, daily list of export licenses granted-that Mr. FRENZEL. Mr. Chairman, will the Washington, D.C. Is. the type of commodity, value of the trans. gentleman yield? We want to invite your attention to a `action, and country of destination-shell seriousproblem that has arisen with regard LAGOMARSIN? I yield to the continue to be made available to the public. Mr. . t ntleman . FR fZZEL Mr lChair n, I would I think it is important to point out geM that the language in the bill is strongly like to concur in the remarks made by supported by the export industry. They the gentleman from California and the feel that not to do this is going to affect gentlewoman from New Jersey. I would their ability to compete with other coun- like to remind this body that we are tries and with each other. I say that the standing here with a $30 billion trade confidentiality provision in this bill does deficit from last year. We are trying to not conflict with the principles of the expand exports. We are not doing a very Freedom of Information Act. good Jbb of it. It is quite specific, as required by FOIA, and it does not prevent disclosure of Government information but, rather, prevents publication of data submitted by business as a function of exporting, data which the Government does not have for domestic sales, as a matter of fact. The Government is not precluded from publishing statistical information, and protecting confidentiality of information can be critical for the success of a busi- ness in a particular deal. The information, if published, would enable foreign and domestic competitors to gain significant advantages in the same markets. It has always been public policy to insure confidentiality of com- petitive business information. For exam- ple, custom import declarations are con- fidential. IRS returns are not published. Domestic production and pricing statis- tics are not published when there are only one or two producers. If Government requires business to supply confidential information, then Government should provide protection for that information. As the Members will note from the language of the bill itself, there is abso- lutely no intention to restrict this in- formation from being made available to Congress. As a matter of fact, we strengthen the provisions requiring that time of the gentleman from California (Mr. LAOOMARSINO) has expired. (By unanimous consent, Mr. LAGO- p e -m IWARSINO was allowed to proceed for 2 for approximately 19,635 surface shipments. additional minutes.) In addition, Caterpillar made 22,542 air ship- Mr. LAC OMARS11V0. Mr. Chairman ments in 1978, most of which required'the , I continue to yield to the gentleman filing of SEDs. (Caterpillar exports amounted from Minnesota, to some X2.2 billion in 1978, and provided Mr. FRENZEL. Mr. Chairman, what jobs for 26,0II0 of Caterpillar's U.S. em- we are trying to do as a national policy plTh prescribed SED form requires shippers is to expand exports. What we are do- to provide detailed information about the ing in our amendments to the Export consignee, items being exported, quantity, Administration Act on this floor is to and value. Such information is of consider- offered by the gentleman from Cali- xpand export, it try to limit exports. The amendment able commercial value. In the hands of com- sabout Cate prr important market fornia is an amendment intended to sa of specific pricis customers- harass all potential exporters who will knowledge offi which dould help competitors not now export because they have to identify promising sales targets, focus sales produce a whole bunch of information efforts for competitive replacement parts, de- that will become available to the world. velop pricing strategies-all to the competi- The amendment offered by the gentle- tive disadvantage of Caterpillar. man from North Carolina is the same Such commercial intelligence would be of thing, only not quite as bad, great value to both foreign and domestic We need to stimulate exports. We have wo lde beoto foreign comptors, who would to tell American businessmen to get out , be able to gather data about all U.S. ex- and work harder, not be more confused porters without expending the tremendous and more depressed by the kind of limita- amount of time, effort, and money that tions that we are putting on here. It is- would be required to obtain this information simply a question of whether you want in other ways. to export or whether you do not. If you with C pillar Commerce Departmentp reque tsnf r want to have all of this extra informa- SElls and other documents. Relying on the tion spread out and demanded of our promise of confidentiality contained in the producers, they simply will not export. EAA and printed on each copy of the SED Mr Chairman I thi f . orm nk all of the this information be furnished to Con- amendments should be defeated. Now, however, the Commerce Depart- gress Itself. Mr. LAGOMARSIRTO. Mr. Chairman, ment's ability to maintain confidentiality of Mr. BAUMAN. Mr. Chairman, will the I want to make an additional comment. this information is being challenged in gentleman yield? The gentleman from Maryland e court suits, which are based on a claim that Mr. LAGOMARSINO. I yield to the a statement about the effecthiswould meet cn erta n st ndarp s afor an E a A emption gentleman from Maryland. have on existing litigation. Section 123 under the Freedom of Information Act. One Mr. BAUMAN. I thank the gentleman of this act, page 62, provides: of these suits would force the Commerce for yielding. This Act and the amendments made by Department to disclose all information con- Mr. Chairman, the gentleman from this Act shall not affect any investigation, tained in SEDs. The potential competitive ryland? has become interested in this suit, action, or other judicial proceedin harm to Caterpillar, should SEDa be dis- _1: is because of his acquaintance with M. commenced under the Export Administration closed, urge substantial. Stanton Evans, one of the plaintiffs in Act ... and n We to ur fyou face this issue squarely - the suit seeking from Commerce infor- So we have exempted existing suits. dom of Information rthe conflict Act Act ca and the between the Export t Ad- oration that has been withheld. I would like to conclude by reading to ministration Act In a manner that will not My study of this question seems to run the Members one sentence from a tele- harm group. exporters, ngr falls inoividend or totally contrary to what the gentleman gram on this subject from Caterpillar si a cIf oofom ce to am I the has said and, in fact, Commerce is not Tractor Co., one of the largest exporters mmation courts of considerable erabiee commercial andimar- allowing the information out that the in this country, just one paragraph. 1, keting value, particularly to foreign compet. C1 1150 The CHAIRMAN pro tempore. The o the Export Administration Act (EAA). It's a matter we believe deserves urgent con- sideration when the Foreign Affairs Com- mittee meets to mark up H.R. 3652, a bill to extend and amend the EllA. At issue is treatment of confidential busi- ness information submitted to the Depart- ment of Commerce. Under the authority of the EAA, the Commerce Department requires exporters to provide considerable informa- tion about export transactions. Caterpillar's most serious concern is with shippers' export declarations (SED's). A copy of this document must be filed for each export shipment. Caterpillar is a major U.S. exporter. In 1978 alone Cater illar fil d Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 r Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 H 8308 CONGRESSIONAL RECORD-HOUSE September 21, 1979 itors. Meanwhile, U.B. companies will have Mr. BINGHAM. Mr. Chairman, I for the countries of the parties. So the no offsetting access to comparable informa- withdraw my unanimous consent re- businesses cannot complain that you are tion from foreign competitors. Their gov- quest. going to give them the list of their ernments, aware of the value of commercial AMENDMENT OFFERED BY MR. QUAYLE TO THE parties. Only the countries. and marketing intelligence, do not require AMENDMENT OFFERED BY MR. DORNAN This amendment also takes out the such disclosure. There is growing recognition, prompted by Mr. QUAYLE. Mr. Chairman, I offer price and the value. I happen to think concern over the large U8. trade deficit, an amendment to the Dorman amend- that that should be confidential, and we that the needs of U.B. exporters have too of- ment. do not want our businesses subject to ten been given inadequate attention. We The Clerk read as follows: have the other businesses go in and try to hope that won't happen in this instance. Amendment offered by Mr. QUAYLE to the find out how much it is going to cost or A What in should bEAA e that done? n privily pro- amendment offered by Mr. DoRNAN: On line what the value was in trading an item. needed for the the protection confidential in- 3 of the amendment strike all after the So the only thing that would be revealed- fo vides rm o submitted to the Commerce e De- word "following" and insert the following: would be the countries of the parties; - par the DAA - (1) In the first sentence by striking out the type of goods or technology, the des- There under "is deemed confidential or with reference to There is now the w a conflict between the Free- confidential treatment tination, the end use, and the quantity. dam of Information Act and the EAA, and which a request for That is reasonable, to compromise. And1 is made by the person furnishing such in- I want to point out that this information as an unintended.result, the U.B. Commerce formation" and insrting is lieu thereof Department could compete be forced to help "would reveal the countries of the parties would not be released until 6 months against U. . companies exporters through more effectively to an export or re-export transaction, the after the fact-6 months after the fact. against U on. We on type of good or technology being exported The problem I have with my good SED in believe release e of Of or re-exported, or the destination, end use, gress Intended information. ended to undermine ndermnot not b mine the competitive e such good or tech- friend-and the gentleman knows that I position of U.S. companies in this manner. quantity, value, or price of have utmost respect for his leadership nology for a period of six months after issu- DONALD in this area, having served on his com- hi urge you to amend the EAA to eliminate ance or denial of an export license or grant- ts problem Ing or denial of re-export authorization mittee, his judiciousness and fairness, Governmental ai Affairs. (after which this information, with the ex- not only in this, but in everything the GoveGovernmental ception of value or price of such good or problem I have with the substitute or his Mr. PREYER. Mr.' Chairman, will the technology, will be available pursuant to amendment is the fact that you put an gentleman yield? section 552 of Title 5, United States Code)"; arbitrary blanket clamp on any infor- Mr. LAGOMARSINO. I yield to the and mation until June 30, 1980. Nothing could gentleman from North Carolina. (2) by striking out the last two sentences be released. And then \after 'that, I do Mr. PREYER. Mr. Chairman, I would and inserting in lieu thereof the following: not even know what could be released. like "Nothing in this Act shall be construed as gentle man reply to the comments of the authorizing the withholding of information So this spells out a compromise, a com- entlma from Minnesota. from Congress, and all information obtained promise instead of asking for the parties, The CHAIRMAN pro tempore. The at any time under this Act or previous Acts we have put in the countries, I have com- time of the gentleman from California regarding the control of exports, including promised that we will not ask fdr the (Mr. LAGOMARSINO) has expired. any report or license application required value or the price. I will say to those Mr. PREYER. Mr. Chairman, I ask under this Act, shall be made available upon Members who are concerned about hurt- uani2nous consent that the gentleman be request to any committee or subcommittee mg exports that we ought to cut out some allowed to proceed for 1 additional min- of Congress of appropriate jurisdiction. No of the paperwork that they have to file ute. such committee or subcommittee shall dis. with the Government in the first place. The CHAIRMAN pro tempore. Is there close any information obtained under this If that is a concern, cut some of the objection to the request of the gentle- Act previous Acts regarding the control of exports which ch is submitted ted on a confi- redtape; but do not cut back the people's man from North Carolina? dential basis unless the full committee de- right to know. And they do have a right Mr. VOLKMER. Mr. Chairman, I ob- termines that the withholding thereof is to know..I realize that it is delicate, it is ject. contrary to the national interest." a tough situation, but I think this com- The CHAIRMAN pro tempore. O.bjec- Redesignate the following sections ac- promise language will get to the heart of tion is heard. cordingly. the matter and I hope the amendment is Mr. BINGHAM. Mr. Chairman, I ask Mr. QUAYLE (during the reading). accepted. unanimous consent that all debate on Mr. Chairman, I ask unanimous consent Mr. BAUMAN. Mr. Chairman, will the this amendment and all amendments that the amendment be considered as gentleman yield? thereto cease in 10 minutes. read and printed in the REcoRD. Mr. QUAYLE.I yield to the gentleman The CHAIRMAN pro tempore. Is there The CHAIRMAN pro tempore. Is there from Maryland. objection to the request of the gentle- objection to the request of the gentle- AUMAN. Mr. Chairman, I want man from New York? man from Indiana? Mr. B Mr. QUAYLE. Mr. Chairman, reserv. There was no objection. to say to the we have character- ing the right to objection, I hope that Mr. QUAYLE. Mr. Chairman, this- seen say A seed the Preyer gentleman compromise. It is no compro- 10-minute gentleman would not insist on his amendment is basically a compromise mice as a amendment an that the all. It is a cosmetic . It is change o- 10-minute limitation to this colloquy. I between what the gentleman from Cali- the bill's language which fact restricts do have a perfecting amendment to the fornia (Mr. DORNAN) and the gentleman the public's right to know, and we do Dorman amendment. After the expira- from North Carolina (Mr. PREYER) are have alance the rights and we do tion of my time on that amendment, trying to do..Let me tell the Members hx coun- then I would not object to limitation of what this amendment does. against the in strategic damage done to processes, this time. So I would hope that I could con- It does not release any information try by trading ma- vince the gentleman to withdraw his during the licensing process. I do not trrib nations and which pin ruse them t wit th Communist e set, build up their t unanimous consent request. think that it is appropriate to release LLIULI4, 2LUU L11611 11 U116 g61SLIVAII L1a waLLLJ COO, UUL-r, Y11G v115'J1LSe ..?.b.,ww,,.,,..., .,,,.. here. The gamendment is a to ask for a 10- or 15-minute limita- I do want some information-revealed true compromise. gentleman's does protect the tion, I would not object at that time. to the public, if the public wants it, 6 rights of business exporters and at the Mr. BINGHAM. If the gentleman will months after the export license is yield, the gentleman will have to make granted: same equally and and even A more, his peace with the gentleman from Cali- I realize that it is a very delicate thing important time the know that right of their the Government American will not fornia (Mr. DANNEMEYER), because his to balance what is in fact a trade secret, permit to fall into the hands of our time is being cut down `by every addi- what should be confidential and what pnrmies, secrets and processes and prous tional minute we spend on this amend- should be the people's right to know. ment. That is not an easy question to answer. ucts that should not be there. The CHAIRMAN pro tempore.Does In this amendment there are a couple of Mr. Chairman, I commend the gentle- the gentleman from New York (Mr. things that are taken out that are now in man for offering his amendment. BINGHAM) withdraw his unanimous con- the bill. One of those things, we do not Mr. DORNAN. Mr. Chairman, will the sent request? ask for the parties involved. We do ask gentleman yield? Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 September 21, 1979 (CON(C]iSIESSEONAL RSCORD OUSTS H 8309 Mr. QUAYLE. I yield to the gentleman from California. Mr. DORNAN. I thank the gentleman for, yielding. Mr. Chairman, because we are all try- ing to be conciliatory here, I hate to be political; but I will put my Chamber of Commerce rating or yours up against anybody who has spoken against my amendment or the gentleman's perfect- ing amendment, which I accept, against any Member who has spoken against us oft this side of the aisle or that side of the aisle. We are the defenders of free enter- prise. I want to give American business the right and the freedom to export all over the world. But what Mr. Stan Evans, the distinguished citizen from the gen- tleman's State is trying to find out are the ugly secrets involved with the Kama River problem, that massive truck fac- tory. ^ 1200 Those trucks will be carrying soldiers to kill people in Israel soon. That is why the American-Jewish Congress Against Kreps has a case this so-called substi- tute amendment would cut. We would change current cases and change current law by this cutting amendment of the distinguished gentleman from North Carolina. I accept the criticism of the distin- guished gentleman from Florida to put a 6-month limit on this and keep prices secret, but not to put everything under wraps until 1980. Mr. BINGHAM. Mr. Chairman, I ask unanimous consent that all debate on this amendment and all amendments thereto cease in 10 minutes. The CHAIRMAN pro tempore. Is there objection to the request of the gentleman from New York? There was no objection. The CHAIRMAN pro tempore. Mem- bers standing at the time the unanimous- consent request was agreed to will be rec- ognized for 45 seconds each. The Chair recognizes the gentleman from North Carolina (Mr. PREYER). Mr. PREYER. Mr. Chairman, let me make clear that there is no compromise involved in the Quayle amendment as be- tween the Dornan amendment and the Preyer amendment. The key thing we are losing sight of is there is a difference between licensing information and ex- part information. My amendment goes to export infor- mation. It carries out the policy estab- lished by William Simon, the former Secretary of the Treasury. It carries out the policy in effect at the Treasury De- partment right now. It is simply being avoided by some shippers, mostly on the west coast, who remove or destroy the bill of lading.,This prevents the routine disclosure of export information. -Mr. Simon is hardly a man who would harass business. As far as licensing in- formation, the Dornan amendment and the Quayle amendment would reveal bus- iness information not now revealed. That is harassing business. That Is the amend- ment the Members ought to be against. The statements of the gentleman from Minnesota and the gentlewoman from New Jersey are directed at the licensing information that would be revealed. The disclosure of export information is al- ready our policy. The CHAIRMAN pro tempore. The Chair recognizes the gentleman from California (Mr. LAGOnu ass o) . (Mr. LAGOMARSINO asked and was given permission to revise and extend his remarks.) Mr. LAGOMARSINO. Mr. Chairman, I think we should clarify exactly what we are doing here. I think that the lan- guage in the bill, as explained in the committee report which I referred to earlier, solves the problem to the satis- faction of industry and the people in the Department of Commerce. As far as strategic information, that does not have to be released now, as provided for by the P'reedom of Information Act. All of this information-and this Is confirmed by and fortified in the bill- has to be furnished to Congress, and cer- tainly we are capable of exercising over- sight. I am sure that this subcommittee is going to continue to do that. The CHAIRMAN pro tempore. The gentleman from California (Mr. Doa- NAN) is recognized. Mr. DORNAN. Although the Foreign Affairs Committee report states that they turn down the administration request to exempt. from the FOIA all Information obtained from exporters under this act by receiving the types of information which could be withheld, the bill, in ef- fect, grants a complete exemption. The following information is exempt: Parties, type of goods or technology be- ing exported, destination, end use, quan- tity-what else Is there? I wish every Member of this House could read the brief of the American- Jewish Congress against Kreps legal case to understand better exactly what we are talking about here. If there are further refinements need- ed, let us get at them next year, but something has to be done now before we find ourselves facing Armageddon with our own high technology coming back at us in a totalitarian blitzkrieg. The CHAIRMAN pro tempore. The Chair recognizes the gentleman from Maryland (Mr. BAuruAw). (Mr. BAUMAN asked and was given permission to revise and extend his re- marks.) [Mr. BAUMAN addressed the Com- mittee. His remarks will appear here- after in the Extensions of Remarks.] (By unanimous consent, Mr. BAuRzAN yielded the balance of his time to Mr. QUAYI:E). (By unanimous consent, Mr. ANDREws of North Carolina and Mr. F'ASCELL yielded their time to Mr. PREYER.) The CHAIRMAN pro tempore. The Chair recognizes the gentleman from North Carolina (Mr. Pagvxa). Mr. PREYER. Mr. Chairman, if-- I might finish up the argument I was mak- ing earlier, those who say the Preyer amendment is another amendment har- assing business do not understand that this is a procompetitive amendment. The more information that carriers, warehousemen, Insurance people, and others who deal with the shipping in- dustry, the more information they have, the more competitive they are, the more they can reduce prices, the more our shipping is competitive around the world. The Dornan amendment is a broad- sweeping, new step in our policy. It adopts an open-door policy on informa- tion which is collected during the licen- sing process, information as sensitive as market shares, for example. The CHAIRMAN pro tempore. The Chair recognizes the gentleman from Ohio (Mr. KINDNESS). Mr. KINDNESS. Mr. Chairman, there is a good bit of complication involved in this, far too much to discuss in 45 seconds, but I wish everyone who has spoken so eloquently on this subject to- day had studied the difference between the two different sections of the law in- volved and the two types of informa- tion to which we are directing our at- tention; the shippers export declaration is one thing, an export license applica- tion is another. Either leave the bill as it is or support the Preyer amendment, but let us not go overboard with either of the alterna- tives that are presented with this and put more roadblocks in the way of de- veloping exports for our Nation. We are going far too far in an unnec- essary way, I believe, with the amend- ment of the gentleman from California. The gentleman from Indiana has sought to improve upon it, but we still are talking about two different things and not that involved in the Jewish Con- gress litigation. The CHAIRMAN pro tempore. The Chair recognizes the gentleman from Minnesota (Mr. FRLNEEL). (Mr. FRENZEL asked and was given permission to revise and extend his re- marks.) Mr. FRENZEL. Mr. Chairman, I owe the gentleman from North Carolina (Mr. PREYER) an apology. I was a little over- enthusiastic in describing his amend- ment. His description of it is accurate. Mine was overstated. It is an enormous improvement over the Dorgan amend- ment. The Quayle amendment should be de- feated. It does not make the Dornan amendment much more palatable. The Dornan amendment should be de- feated. If the Preyer amendment is accepted, I guess it will not do too much damage; but, Mr. Chairman, there is nothing wrong with the language in the commit- tee bill. That section was well written by the committee. That language is my first choice. The best option for all of us is to de- feat all of the amendments. We are try- ing to improve our balance of trade. We are trying to improve the value of the dollar by reversing our persistent trade deficits. We want to enhance export. de- velopment from this country. We can no longer tolerate the huge deficit. The best way to encourage ex- ports is to leave the law as it is. Support the Preyer amendment to the Dornan amendment, and then reject the Preyer amendment as amended. Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 IH[ 831 CONGRIESSJONAIL RECORD-HOUSE September 21, 1979 That is the best way to encourage American firms, especially small firms, to develop export potential. (By unanimous consent, Mr. VOLKMER yielded his time to Mr. BINGHAM.) The CHAIRMAN. The Chair recognizes the gentleman from Wisconsin (Mr. ZA- BLOCKI). (Mr. ZABLOCKI asked and was given permission to revise and extend his re- marks.) Mr. ZABLOCKI. Mr. Chairman, the Subcommittee on International Eco- nomic Policy of the Committee on For- eign Affairs, after holding extensive hearings, gave serious consideration to the confidentiality provisions that are contained in this bill. The committee bill solves the existing problem of the court having ruled that the confidentiality pro- vision of the Export Administration Act do not meet the requirements of the Freedom of Information Act. The bill specifies what information should be held confidential. I urge the members of the committee to support the House version. If they see some concern, 'certainly the Preyer sub- stitute is far preferable to the Dornan amendment, even if it is modified by the Quayle amendment. I hope the Members will support the committee.- [1 1210 The CHAIRMAN. The Chair recognizes the gentlewoman from New Jersey (Mrs. FENWICK). Mrs. FENWICK. Mr. Chairman, we have heard about trucks and we know about trucks. Trucks can be made not only in France by Renault, in Italy by Fiat, in Germany by Volkswagen, but also they can be made in Czechoslo- vakia, and every bus in the Soviet Union is made in Czechoslovakia. Why do we get so many of these contracts despite the competition and the harassment? Because some of the big companies are able to deal with the roadblocks that are put in the way. The smaller com- panies cannot. We imported over $106 billion of manu- factured goods last year and we exported only $91 billion, and these restrictions are part of the problem. What part of the public is interested in the price and quantity of what has been sold? Compet- itors. Congress has a right to know if we are concerned about security, but not competitors. (By unanimous consent, Mr. DANNE- MEYER yielded his time to Mr. QUAYLE.) The CHAIRMAN. The Chair recog- nizes the gentleman from Indiana (Mr. QUAYLE). Mr. QUAYLE. Mr. Chairman, let me Just put in perspective what we have here. We have the Doman amendment which goes back basically to the law we have today. There are people that are concerned about the law. Bill Simon is concerned, the gentleman from North Carolina (Mr. PREYER) is concerned about it and I am concerned about it. Next we have the Preyer amendment to the Dornan amendment, which puts a cap on all information that is given to the Department of Commerce concern- ing exports to June 30, 1980, it puts a lid on it. I want. to direct myself to what is a compromise beteween those two things. We are not after licensing information, we are not after information during the process, we are concerned and interested about historical data. That is why the Quayle amendment says any of this in- formation will not be released until 6 months after the fact. I do not like to see us get into argu- ments about whether it is a pro-Soviet or anti-Soviet or proexport or antiexport matter, because what we are talking about here is what kind of a balance we are going to strike between what the peo- ple have a right to know and what busi- ness has a right to be kept confidential. I want to reiterate that ifi the Freedom of Information Act today trade secrets are protected. There is no doubt about it. Trade secrets are protected. We are not interested in that. What my amendment does is to com- promise what the Doman and Preyer amendment goes to, and that is after 6 months we will release information. We will not release parties. Business came to us and said we do not want to give you our list of clients. OK, we will release the countries of the parties. We will not release price, because that should be kept confidential, and we will not release value. That is a compromise and it is a com- promise from the original version. I think it is a step in the right direction to bal- ance off this thing on the right to know and the right to protect confidentiality. I must also say as we get into this, and I am sure the gentleman from North Carolina, who has been very active in this area knows, we will take it up under the Freedom of Information Act itself to try to clarify what is a trade secret and what is not a trade secret. This is sort of a piecemeal approach to put this in now. I think the Members ought to support the Quayle amendment which is a balance. The CHAIRMAN. The Chair recognizes .the gentleman from North Carolina (Mr. PREYER). Mr. PREYER. Thank you, Mr. Chair- man. My amendment is consistent with the committee bill as far as export licensing goes. I agree with him absolutely, to pass the Dornan amendment or the Quayle amendment would open up business to great harassment. Why do we need my amendment at all then? Simply because some shippers are frustrating what is our announced policy in this country about export informa- tion. Some West Coast shippers are avoiding that policy, what William Simon said our policy was on information, by tearing the bill of lading off the shipping documents or by mutilating it. My amendment- simply provides that all ex- port information will be 'treated the same all over the country. The CHAIRMAN. The Chair recog- nizes the gentleman from New York (Mr. BINGHAM). Mr. BINGHAM. Mr. Chairman, first of all, very briefly on the subject of the interests of the American Jewish Con- gress, the American Jewish Congress has no objection to the committee bill. Their legitimate problem dealt with the past. There is no quarrel with what we are try- ing to do here. As far as the choice between the Preyer substitute and the Dornan amendment is concerned, I think the arguments are overwhelming in favor of the Preyer substitute, and I hope the Preyer substi- tute will be adopted. As far as the Quayle amendment to the Doman amendment is concerned, it is probably an improvement, and in any event, Mr. DORNAN himself has accepted, it, so I think that can go on a voice vote. I would still prefer the committee bill to the Preyer amendment, but mildly,. and if the Preyer substitute is adopted, and I assume we will have a record vote on that, I will not ask for a record vote on the final adoption of the Preyer sub- stitute. . The CHAIRMAN. The question is'on the amendment offered by the gentleman from Indiana (Mr. QUAYLE) to the amendment offered by the gentleman from California (Mr. DORNAN). The amendment to the amendment was agreed to. The CHAIRMAN. The question is on the amendment offered by the gentle- man from North Carolina (Mr. PREYER) as a substitute for the amendment offered by the gentleman from Cali- fornia (Mr. DORNAN), as amended. The question was taken; and the Chairman announced that the ayes ap- peared to have it. Mr. BAUMAN. Mr. Chairman, I de- mand a recorded vote, and pending that, I make the point of order that a quorum is not present. The CHAIRMAN. Does the gentleman from Maryland press his point 01; order? Mr. BAUMAN. Mr. Chairman, I do. The CHAIRMAN. Did the gentleman from Maryland press the point of order or withdraw the point of order? Mr. BAUMAN. Mr. Chairman, I with- draw the point of order. The CHAIRMAN. The gentleman from Maryland (Mr. BAUMAN) withdraws his point of order of no quorum. RECORDED VOTE The CHAIRMAN. The pending busi- ness is the demand of the gentleman from Maryland (Mr. BAUMAN) for a re- corded vote. A recorded vote was ordered. The vote was taken by electronic de- vice, and there were-ayes 318, noes 29, not voting 87, as follows: [Roll No. 4991 AYES-318 Abdnor Beard, R.I. Brooks Akaka Beard, Tenn. Broomfield Albosta Bedell Brown, Calif. Alexander Beilenson Buchanan Ambro Benjamin Burgener Anderson, -Bennett Burlison Califl Bereuter Burton, John Andrews, N.C. Bevill Byron Andrews, Bingham Campbell N. Dak. Blanchard Carr Annunzio Boggs Cavanaugh Anthony Boland Cheney Applegate Bolling Chisholm Archer Boner Clay Ashley Bonior Clinger Aspin Bonker Coelho Atkinson Bouquard Coleman Bailey Bowen Conable Baldus Brademas Conte Barnard Brinkley Corcoran Barnes Brodhead Corman Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 September 21, 1979 CONGRESSIONAL RECORD-HOUSE Courter Hyde Pease D'Amours Ireland Perkins Daniel, Dan Jeffords Petri Daniel, R. W. Jeffries Peyser Danielson Jenkins Preyer Dannemeyer Jenrette Price Davis. Mich. Johnson, Calif. Pritchard Deckard Jones. N.C. Rahall Derrick Jones, Okla. Railsback Derwinaki Jones, Tenn. Rangel Devine Kastenmeler Ratchford Dickinson Kazen Regula Dicks Kildee Reuss Dingell Kindness Rhodes Dodd Kostmayer Rinaldo Donnelly Kramer Ritter Drinan LaFalce Roberts Duncan, Tenn. Lagomaraino Robinson Eckhardt Latta Roe 'Edgar Leach, Iowa Rostenkowski finery Leach, La. Roth English Lederer Roybal Erdahl Lehman Royer Erlenborn Leland Russo Ertel Lent Sabo Evans, Del. Levitas Schauer Evans, Ga. Lloyd Schroeder Evans, Ind. Loeffler Seiberling Fary Long, La. Sensenbrenner Fascell Long, Md. Shannon Fenwick Lott Sharp Ferraro Lowry Shelby Findley Luken Shumway Fish Lundine Shuster Fisher Lungren Skelton Fithian McClory Slack Flippo McCloskey Smith, Iowa Florio McCormack Emith, Nebr. Ford. Tenn. McDade Snows Forsythe McHugh Snyder Fountain McKay Solerz Fowler McKinney Spellman Frenzel Madigan Spence Frost Maguire St Germain Fuqua Markey Stack Garcia Marks Staggers Gephardt Marlenee Stangeland Giaimo Martin stark Gingrich Matsui Steed Ginn Mattox Stewart Glickman Mavroules Stockman Goldwater Mazzoli Stokes Gonzalez Mica Studds Goodling Michel swift Gore Mikulski Synar Gradison Mikva Tauke Gramm Miller, Calif. Thomas Grassley Mineta Thompson Gray Minish Traxler Green Mitchell. Md. Trible Grisham Mitchell, N.Y. Udall Guarini Moakley Van Deerlin Gudger Mollohan Vander Jagt Guyer Montgomery Vanik Hagedorn Moore Vento Hall, Ohio Moorhead, Volkmer Hamilton Calif. Waigren Hence Moorhead, Pa. Walker Harkin Mottl Watkins Harris Murphy, Pa. Wa (man Harsha Murtha Weaver Hawkins Myers, Ind. Weiss Heckler Natcher White Hefner Neal Whitehurst Heftel Nedzi Whitley Hillis Nelson Whittaker Hinson Nichols Whitten Holt Nolan Wilson, Bob Holtzman Nowak Wilson, Tex. Hopkins O'Brien Wirth Horton Oberstar Wright Howard Obey Wylie Hubbard Ottinger Yates Huckaby Panetta Yatron Hughes Patten Young, Alaska Hutto Patterson Zablocki NOES-29 Ashbrook Hammer- Quayle $afalis Schmidt Quillen B!7uman Hansen Rudd Btthune Ichord Satterfield Carney Kelly Schulze Collins, Tex. Kemp Solomon Crane, Daniel Livingston Stratton Crane, Philip Lujan Stump Dornan McDonald Wyatt Gilman Miller, Ohio Young, Fla: NOT VOTING--87 Addabbo Edwards, Calif. Pepper Anderson, Ill. Edwards, Okla. Pickle AuCoin Fazio Pureell Badham Flood Richmond Biaggi Foley Rodino Breaux Ford, Mich. Rose Brown, Ohio Gaydos Rosenthal Broyhill Gibbons Rousselot Burton, Phillip Hall, Tex. Runnels Butler Hanley Santini Carter Hightower Sawyer Chappell Holland Sebelius Clausen Hollenbeck Simon Cleveland Jacobs Stanton Collins, Ill. Johnson, Colo. Stenholm Conyers Kogovsek Symms Cotter Leath, Tex. Taylor Coughlin Lee Treen Daschle Lewis Ullman Davis, S.C. McEwen Wampler de la Garza Marriott Williams, Mont. Dellums Mathis Williams, Ohio Diggs Moffett Wilson, C. H. Dixon Murphy, M. Winn Dougherty Murphy, N.Y. Wolff Downey Myers, Pa. Wolpe Duncan, Oreg. Oakar Wydler Early Pashayan Young, Mo. Edwards, Ala Paul Zeferetti ^ 1230 Messrs. SATTERFIELD, STRATTON, SOLOMON, LIVINGSTON, and COL- LINS of Texas changed their votes from "aye" to "no." So the amendment offered as a substi- tute for the amendment, as amended, was agreed to. The result of the vote was announced as above recorded. The CHAIRMAN pro tempore. The question is on the amendment offered by the gentleman from California (Mr. DORNAN), as amended. The amendment, as amended, was agreed to. The Clerk will read. The Clerk read as follows: REPORT TO CONGRESS SEC. 115. Section 14 of the Export Admin- istration Act of 1969, as redesignated by sec- tion 104(a) of this Act, is amended to read as follows: "ANNUAL REPORT "SEC. 14. Not later than December 31 of each year, the Secretary shall submit to the Congress a report on the administration of this Act during the preceding fiscal year. All agencies shall cooperate fully with the Secre- tary in providing information for such report. Such report shall include detailed informa- tion with respect to- " (1) the implementation of the policies set forth in section 3; "(2) general licensing activities under sec- tions 6, 6, and 7; "(3) actions taken in compliance with sec- tion 6(c) (3); "(4) changes in categories of items under export control referred to In section 5 (e); "(5) the operation of the indexing system under section 6(g); "(6) 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 impose export controls for national security purposes notwithstanding foreign availabil- ity; "(7) 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; 118311 "(8) changes in policies toward individual countries under section 5(b); "(9) actions taken to Cary out section 5(d); "(10) the effectiveness of export controls imposed under section 6 in furthering the foreign policy of the United States; "(11) the Implementation of section 8; "(12) export controls and monitoring under section 7; "(13) organizational and procedural changes undertaken 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 li- cense applications and an accounting of ap- peals received, court orders issued, and actions taken pursuant thereto under sub- section (1) of such section; and "(14) violations under section 11 and en- forcement activities under section 12.". Mr. BINGHAM (during the reading). Mr. Chairman, I ask unanimous consent that section 115 be considered as read, printed in the RECORD and open to amendment at any point. The CHAIRMAN pro tempore. Is there objection to the request of the gentleman from New York? There was no objection, The CHAIRMAN pro tempore. Are there amendments to section 115? If not, the,Clerk will read. The Clerk read as follows: RULES AND REGULATIONS SEC. 118. The Export Administration Act of 1969 is amended by inserting after section 14, as redesignated by section 104(a) 'of this Act, the following new section: "REGULATORY AUTHORITY "SEC. 16. The President and the Secretary may issue such rules and regulations as are necessary to carry out the provisions of this Act. Any such rules or regulations Issued to carry out the provisions of section 6(a), 6(a), 7(a), or 8(b) may apply to the financ- ing, transporting, or other servicing of ex- ports and the participation therein by any person.". The CHAIRMAN pro tempore. Are there amendments to section 116? If not, the Clerk will read. The Clerk read as follows: DEFINITION SEC. 117. Section 16 of the Export Adminis- tration Act of 1969, as redesignated by sec- tion 104(a) of this Act, is amended- (1) in paragraph (1) by striking out "and" after the semicolon; (2) In paragraph (2) by striking out the period at the end thereof and Inserting in lieu thereof "; and"; and (3) by adding at the end thereof the fol- lowing: "(3) the term 'Secretary' means the Secre- tary of. Commerce.". EFFECT ON OTHER ACTS SEC. 118. (a) Section 17 of the Export Ad- ministration Act of 1969, as redesignated by section 104(a) of this Act, is amended in subsection (b) by striking out "section 414 of the Mutual Security Act of 1954 (22 U.S.C. 1934) " and inserting in lieu thereof "section 38 of the Arms Export Control Act (22 U.S.C. 2778) ". (b) Effective October 1, 1979, the Mutual Defense Assistance Control Act of 1951 (22 U.S.C. 1611-1613d) is superseded. AUTHORIZATION OF APPROPRIATIONS SEC. 119. Section 18 of the Export Adminis- tration Act of 1969, as redesignated by sec- Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 H 8312 tion 104(a) of this Act, is amended to read as follows: "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 spe- cifically authorized by law. "(b) AUTHORIZATION: (l) There are au- thorized to be appropriated to the Depart- ment of Commerce to carry out the purposes of this Act $7,070,000 for the fiscal year 1980 and $7,777,000 for the fiscal year 1981 (and such additional amounts as may be neces- sary for increases in salary, pay, retirement, other employee benefits authorized by law, and other nondiscretionary Costs). "(2) Of the funds-appropriated to the De- partment of State for the fiscal year 1980, the Secretary of State may use such amounts as may be necessary to carry out the provisions of section 5 (k) of this Act.". TERMINATION DATE SEC. 120. Section 20 of the Export Adminis- tration Act of 1969, as redesignated by sec- tion 104(a) of this Act, is amended by strik- ing out "1979" and inserting in,lieu thereof "1983". TECHNICAL AMENDMENTS SEC. 121: (a) For purposes of this section, an amendment which is expressed in terms of an amendment to a section or other pro- vision, shall be considered to be a section, as redesignated by section 104(a) of this Act, or other provision of the Export Administra- tion Act of 1969. (b) Section 7 is amended- (1) in the section heading by striking out "AUTHORITY" and inserting in lieu thereof "OTHER CONTROLS"; (2) in subsection (b)- (A) in paragraph (1)- (1) by inserting "(2) (C)" immediately after "section 3" the first time it appears, (ii) by striking out "articles, materials, or supplies, including technical data on any other information," and inserting in lieu thereof "goods", (iii) by striking out "articles, materials, or supplies" and inserting in lieu thereof "goods", and (iv) by striking out "(A)" and inserting in lieu thereof "(C) "; and (B) by striking out paragraph (2) and inserting in lieu thereof the following: "(2) Upon imposing quantitative restric- tions on exports of any goods to carry out the policy, stated in section 3(2) (C) of this Act, the Secretary shall include in a notice pub- lished in the Federal Register with respect to such restrictions an invitation to all in- terested parties to submit written comments within fifteen days from the date of publica- tion on the impact of such restrictions and the method of licensing used to implement them."; (3) in subsection (c)- (A) in paragraph (1)- (i) by striking out "(A)"" and inserting in .lieu thereof "(C) "", (ii) by striking out "of Commerce", (iii) by striking out "7(c)" and inserting in lieu thereof "12(c)", and (iv) by striking out "article, material, or supply" and inserting in lieu thereof "goods": (B) in paragraph (2) by striking out "each article, material, or supply" and inserting in lieu thereof "any goods'"; and (C) by adding at the end thereof the following new paragraph: "(3) The. Secretary shall consult with the Secretary of Energy to determine whether monitoring under this subsection Is war- ranted with respect to exports of facilities, machinery, or equipment normally and prin- cipally used, or intended to be used, in the production, conversion, or transportation of CONGRESSIONAL RECORD-HOUSE September 21, 1979 fuels and energy (except nuclear energy), including but not limited to, drilling rigs, platforms, and equipment; petroleum refin- eries, natural gas processing, liquefaction, and gasification plants; facilities for produc- tion of synthetic natural gas or synthetic crude oil; oil and gas pipelines, pumping stations, and'associated equipment; and ves- sels for transporting oil, gas, coal, and other fuels."; - (4) in subsection (f)- (A) in paragraph (1) by striking out "(B) or (C)" and inserting in lieu thereof "(A) or (B)" (B) in paragraph (2)- (I) by striking out "of Commerce" each place it appears, and (ii) by striking out "(A)" and inserting in lieu thereof "(C)"; and (C) in paragraph (3) by striking out "clause (A) or (B) of paragraph (2)" and inserting in lieu thereof "paragraph (2) (C) "; (5) in subsection (i) by striking out "(A) ,and inserting in lieu thereof "(C) "; (6) in subsection (j)- (A) by striking out "(A)" and inserting in lieu thereof "(C)"; and (B) by striking out "of Commerce" each place it appears; and (7) by striking out subsections (a), (d), (e), (g), (h), and (k), and redesignating subsections (b), (c), (f), (I), (j), (1), sub- section (m), as added by section 6(d) (2) of the International Security Assistance Act of 1978, and subsection (n), as added by,sec- tion 109 of this Act, as subsections (a), (b), (c), (d), (e), (f), (g), and (h), respectively. (c) Section 8 is amended- . (1) in paragraphs (1) (D) and (5) of sub- section (a) by striking out "of Commerce"; and (2) in subsection (b)- - (A) in paragraph (1) by striking out "4(b)" and inserting in lieu thereof "6(a) "; and (B) in paragraph (2) by striking out "of Commerce" each place it appears. (d) Section 9 Is amended- (1) by striking out "of Commerce" each place it appears; and (2) by striking out "commodity" each place it appears and inserting Iii lieu thereof "good" (e) Subsection (c) (2) of section 11 is amended by striking out '4A`' each place it appears and inserting in lieu thereof "8". (f) Section 12 is amended- (1) in subsection (b) by striking out "the Compulsory Testimony Act of February 11, 1893 (27 Stat. 443; 49 U.S.C. 46)" and insert- ing in lieu thereof "section 6002 of title 18. United States Code"; (2) in subsection (c)- (A) by striking out '"4A" and Inserting in lieu thereof "8"; (B) by striking out "6" and inserting in lieu thereof "11 and (C) by striking out "section 4(b)" and inserting in lieu thereof "this Act"; (3) in subsection (d)- (A) by striking out "quarterly"; and (B) by striking out "10" and inserting in lieu thereof "14"; and (4) in subsection (e)-.- (A) by striking out "of Commerce"; (B) by striking out "(c)" and inserting in lieu thereof "(h) "; (C) by striking out "articles, materials, and supplies" and inserting in lieu thereof "goods and technology", and (D) by striking out the last two sentences and inserting in lieu thereof the following: "The Secretary shall include, in the annual report required by section 14 of this Act, actions taken on the basis of such review to simplify such rules and regulations.". (g) Section 13 is amended by striking out "6" and inserting in.lieu thereof "11". TECHNICAL AMENDMENTS TO OTHER ACTS SEC. 122. (a) Section 38(e) of the Arms Export 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 Admin- istration, Act of 1969, 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 by striking out "(A)" each place it appears and inserting in lieu thereof "(C)' (2) Section 254(e) (3) of such Act (42. (A) by striking out "7" and inserting in lieu thereof "12"; and (B) by striking out "(50 App. U.S.C. 2406". (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)" and inserting in lieu thereof "7(a)"; (2) by striking out "(50 U.S.C. App. 2403 (b))"; and (3) by striking out "(A)" and inserting in lieu thereof "(C) ". SAVINGS PROVISIONS SEC. 123. (a) All delegations, rules, regula- tions, orders, determinations, licenses, or other forms of administrative action which have been made, issued, conducted, or al- lowed to become effective under the Export Control Act of 1949 or the Export Adminis- tration Act of 1969 and which are in effect at the time this Act takes effect shall con- tinue in effect according to their terms until modified, superseded, set aside, or re- voked under this Act or the amendments made by this Act. (b) This Act and the amendments made by this Act shall not apply to any admin- istrative proceedings commenced or any ap- plication for a license made, under the Ex- port Administration Act of 1969, which is pending at the time this Act takes effect. (c) This Act and the amendments made by this Act shall not affect any investigation, suit, action, or other judicial proceeding com- menced under the Export Administration Act of 1969, or under section 652 of title 5, United States Code, which is pending at the time this Act takes effect; but such investi- gation, suit, action, or proceeding shall be continued as if this Act had not been enacted. EFFECTIVE DATE SEC. 124. (a) Except as provided in sub- section (b), this title and the amendments made by this title shall take effect on Oc- tober 1, 1979. (b) The amendments made by sections 107 and 108 of this Act shall take effect on the date of enactment of this Act. TITLE II-INTERNATIONAL INVESTMENT SURVEY ACT AUTHORIZATION OF APPROPRIATIONS SEC. 201. (a) Section 9 of the International Investment Survey Act of 1976 (90 Stat. 2059) is amended to read as follows: "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. Mr. BINGHAM (during the reading). Mr. Chairman, I ask unanimous consent's that the remainder of the bill be consid- ered as read, printed in the RECORD and open to amendment at any point. - The CHAIRMAN pro tempore. Is there' objection to the request of the gentle- man from New York (Mr. BINOBAes) ? There was no objection. AMENDMENT OFFERED BY MR. MILLER OF OHIO Mr. MILLER of Ohio. Mr. Chairman, I offer an amendment. Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 September 21, 1979 CONGRESSIONAL RECORD -HOUSIE The Clerk read as follows: Amendment offered by Mr. MILLER of Ohio: Page 63, immediately after line 6, in- sert the following new section: DIVERSION TO MILITARY USE OF CONTROLLED GOODS OR TECHNOLOGY SEC. 127. Section 5 of the Export Admin- istration Act of 1969, as added by section 104(b) of this Act, is amended by adding at the end thereof the following new subsec- tion: "(1) DIVERSION TO MILITARY 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 sec- tion to a country to which exports are con- trolled for national security purposes, have been diverted to significant military use, the Secretary shall, for as long as that diversion to significant military use continues- "(A) 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 technology are available to that country from sources out- side the United States; and "(B) take such additional steps under this Act as are necessary to prevent the further military use of the previously exported goods or technology. "(2) As used in this subsection, the terms 'diversion to significant military use' and 'significant military use' include, but are not limited to, the use of goods or technology In the design or production of any item on the United States Munitions List.". Mr. MILLER of Ohio (during the read- ing). Mr. Chairman, I ask unanimous consent that the amendment be consid- ered as read and printed in the RECORD. The CHAIRMAN pro tempore. Is there objection to the request of the gentleman from Ohio (Mr. MILLER) ? There was no objection. (Mr. MILLER of Ohio asked and was given permission to revise and extend his remarks.) Mr. MILLER of Ohio. Mr. Chairman, there is one important item missing from this act which must be corrected. The item concerns what the administration should do once a determination has been made that a military diversion has taken place by a country to which we are con- trolling exports for national security rea- sons. This amendment would require the President to stop any further export of American goods or services to the par- ticular project or plant which is pro- ducing the item on the U.S. munitions control list. The need for this amendment can be easily recognized through the Kama Riv- er truck plant episode. Whether there were adequate "safeguards" or "end-use" statements in place should not be the focus of attention at this stage of the game. The fact is- The plant is in existence; It was built in large part with Ameri- can technology and equipment; and It is producing military vehicles not only for Soviet use, but for the Warsaw Pact as well. Therefore, the question now confront- ing us is what should America do today,? Not what we should have done yesterday. Are we going to continue the export of spare parts and technical expertise to keep the plant in operation? If we do, we are very foolish. This amendment seeks to clarify U.S. policy once a diversion has occurred. All we are saying with this amend- ment is that if by chance the "safe guards" and "end-use" statements fail;, if by chance we made a mistake by trans- ferring the technology-and that it can be shown that the Soviets are using the exports for miltary purposes-then we must stop the further flow of goods and services which will contribute or support the diversion. We cannot abdicate our responsibility by saying, "the previous administration is responsible for this military truck plant in the Soviet Union; it is too late now; the water is over the dam, and we should therefore continue to ship them the spare parts and technical advice they need to keep the plant in operation." That attitude is ridiculous. Why should we aid in continued diversion? The arguments can be raised, "won't the French or Germans come in and sup- ply the technical expertise and material to keep the plant going?" I do not think so. Once the President learns that a di- version has taken place. He should im- mediately go to our allies and say-"we made a mistake, we did not think the Russians would use this export for mili- tary purposes. They breached the under- standing. Therefore, we are going to can- cel all existing license agreements and to the best. of our ability, we will try to prevent the export of spare parts and technical advice they need to run the plant. Can we count on your help?" I have faith that our allies will listen to such a plea, and work with us to keep the West strong. If they choose to undercut us, they are only hurting themselves, because one day the Warsaw Pact nations may decide to challenge NATO with superior mili- tary strength. The cause for such a con- frontation will be in large part their do- ing. Mr. Chairman, why should the United States have a munitions control 'list to prevent the export of military hardware to countries deemed as potential ad- versaries-if we turn right around and transfer the technology and equipment needed to produce the very items we are trying to keep from falling in the hands of these nations? If we are going to build the Soviet Union a truck plant to assist in the pro- duction of military troops transport ve- hicles, armored personnel carriers, and tank turrets, why not scrap the muni- tions list, and sell them the equipment directly? If the Soviets choose to divert U.S. technology for their military-let us call the deal ofi'. That is the least we can do. Mr. Chairman, I believe we should take a few, minutes and define some of the terms used in this amendment so that, there will be no misunderstanding of its original intent when the Commerce De- partment implements it. By "reliable evidence that goods or technology have been diverted," we mean HH 8313 when the administration has reason to believe that a diversion is taking place. It does not mean the administration must sit back and wait for some third party to bring in the absolute proof that a diversion has taken place. When deal- ing with national security issues and with nations like the U.S.S.R., there is rarely absolute proof of anything. The admin- istration must act on those items it has reason to believe are being used for mili- tary purposes. As a result, American in- telligence agencies must aggressively in- vestigate any allegations that a diversion is taking place. In addition, they must have the attitude that when dealing with Communist nations-if technology can be diverted for military use, it will be. The term "significant military use" is at least tied to the munitions list. There may be other items not specifically on the U.S. munitions list that need to be con- trolled for national security reasons. Law enforcement and intelligence gathering equipment could be examples of such items. Items on the "critical technology list" currently being developed within the Department of Defense will probably be added to the list of items we do not want the Soviet Union producing with U.S. technology and support services. As a result, the administration must be given the flexibility to broaden the defi- nition of "significant military use" be- yond the items on the U.S. munitions list. The term "diversion" does not neces- sarily have to be connected with the use of "safeguards" and "end-use" state- ments. Because of the Miller "safeguard" amendment overwhelmingly accepted by this body-271 to 138-on Tuesday, Sep- tember, 11, license applications to poten- tial adversaries cannot be approved on the basis of "safeguards" or on the as- sumption that "end-use" statements will be followed. We must still assume that if it can be diverted, it will be diverted. Therefore, the United States should not export the goods or technology. How- ever, the Soviets are very good at using American civilian technology for mili- tary purposes. This amendment is needed to protect U.S. national security on those items we exported where we did not realize that it could be diverted for mili- tary use by a potential adversary. The very nature of the Export Ad- ministration Act we are amending today defines that we are dealing with dual- use technologies, and that the United States would not export goods or tech- nology which could be used in the design or production of items on our munitions list. So, if for example, the Soviet Union is using the Kama River truck plant to produce military vehicles-or "civilian" vehicles later diverted for direct military use, that is, rocket launchers, troop transport carriers, et cetera-it can be said that a diversion has taken place- regardless of the presence of "end-use" statements or "safeguard" arrangements. Finally, this amendment does not limit the President on additional actions he chooses to take in dealing with govern- ments like the Kremlin. This amendment is only the bottom line. If he knows of a diversion, his administration must act. Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 H 8324 CONGRESSIONAL II CORD - HOUSE September 21, 1979 He can do more than the amendment re- quires, but he must meet this bottom line. Mr. Chairman, I believe that this is a constructive amendment which will greatly improve the bill. I urge that it be accepted. Thank you. Mr. BINGHAM. Mr. Chairman, will the gentleman yield? Mr. MILLER of Ohio. I yield to the gentleman from New York. Mr. BINGHAM. Mr. Chairman, I wish we could debate this amendment and dis- cuss it but it would take some. time to do so. Under the circumstances, since we only bad this amendment given to us fairly recently, I will not object to it. I think it may require some clarification in conference, but at this point I. am pleased to accept the amendment. Mr. BULLER of Ohio. Mr. Chairman, I thank the gentleman. Mr. LAGOMARSINO. Mr. Chairman, will the gentleman yield? Mr. LEM& a of Ohio.. I yield to the gentleman from California. Mr. LAGOMARSINO. Mr. Chairman, on behalf of the minority, I accept the amendment with the same caveat ex- pressed by the gentleman from New York. Mr. BINGHAM. It may require some clarification in conference. Mr. MILLER of Ohio. Mr. Chairman, I thank the gentleman from California, and I yield back the balance of my time. The CHAIRMAN pro tempore. The question is on the 'amendment offered by the gentleman from Ohio (Mr.. MILLER). The amendment was agreed, to. AMENDMENTS OFFERED BY MR. MOAKLEY Mr. MOAXLEY. Mr. Chairman, I offer a series of amendments, and ask unani- mous consent that they be considered en block. There is one substantive amendment but it necessitates five technical amendments. The CHAIRMAN pro tempore. Is there objection to the request of the gentleman from Massachusetts (Mr. MOAALEY) ? There was no objection. The Clark read as follows: Amendments offered by Mr. MOAKLEY: Page 55, insert the following after line 19 and redesignate subsequent sections accordingly: REFINED PETROLEUM PRODUCTS Sc. a121. Section. 7 of the Export Adminis- tration Act of 1969, as amended by section 109 of this Act, is amended by adding at the end thereof the following new subsection: "(o) (1) No rained petroleum product or residual fuel oil may be exported except pur- suant to an export license specifically author- izing such export. Not later than five days after an application for a license to export any refined petroleum product or residual fuel all is received, the Secretary shall notify the Congress of such application, together with the name of the exporter, the destina- tion of.the proposed export, and the amount and price of the proposed export. Such noti- fication shall be referred to a committee of appropriate jurisdiction in each House of Congress. "(2) the Secretary may grant such license if, within live days after notification to the Congress under paragraph (1) is received, a meeting of either committee of Congress to which the notification was referred under paragraph (1) has not been called, with re- spect to the proposed export, (A) by the chairman of the committee, (B) at the re- quest in writing of a majority of the mem- bers of the committee, or (C) at the request of the Speaker of the House of Representa- tives or the Majority Leader of the Senate. Any such meeting shall be held within 10 days after notification to the Congress under paragraph (1) is received. If such a meeting is so called and held, the Secretary may not grant the license until after the meeting: "(3) If, at any meeting of a committee called and held as provided. in paragraph (2), the committee by a majority vote, a quorum being present, requests 30 days, beginning on the date of the meeting, for the purpose of taking legislative action with respect to the proposed export, the Secretary may not grant the license during such 30- day period. "(4) Notwithstanding the provisions of paragraph (2) and (3) of this subsection, the Secretary may, after notifying the Con- gress of an -application for an export license pursuant to paragraph (1), grant the license if the Secretary 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 will cause irre- parable harm. "(5) At the time the Secretary grants any license to which this subsection applies, the Secretary shall so notify the Congress, to- gether with the name of the exporter, the destination of the proposed export, and the amount and price of the proposed export. "(6) This subsection shall not apply to (A) any export license application for ex- ports to a country with respect to which historical export quotas established by the Secretary on the basis of past trading rela- tionships apply, or (B) any license applica- tion for exports to a country if exports under the license would not result in more than 250,000 barrels of refined petroleum products and residual fuel OR being exported from the United States to such country in any fiscal year. "(7) For purposes of this subsection, 're- fined petroleum product' means gasoline, kerosene, distillates, propane or butane gas, or diesel fuel. "(8) The Secretary may extend any time 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." Page 59, line 1. strike out "and". Page 59, line 2, insert after "Act," the following: "and subsection (o), as added by section 121 of this Act,". Mr. MOAKLEY (during the reading). Mr. Chairman, I ask unanimous consent that the amendments be considered as read and printed in the RECORD. Th CHAIRMAN pro tempore. Is there objection to the request of the gentle- man from Massachusetts? There was no objection. ? 1240 (Mr. MOAKLEY asked and was given permission to revise and extend his remarks.) Mr. MOAKLEY. Mr. Chairman, during the August recess, the Department of Commerce granted export licenses for the sale of $47 million worth 'pf petro- leum products to Iran. There was II)}ich public outcry over this sale, and I was active in this protect. I would like to point out that my ob- jection has- not been raised because I want to stop aid from going to the peo- ple of Iran, nor have I been protesting an action that may ultimately be in the best interests of this country. Rather, my objections were prompted by the fact that this oil was shipped with no advance notice to the Congress at a time when our own citizens are concerned that they may be facing serious shortages of home heating oil this winter. In fact, Mr. Chairman, just let me explain for a moment the particular situation in which I found myself when the announcement of the export to Iran was made. The original target date put out by the Energy Department for the time at which we were to have sufficient heating oil stockpiled had already slipped by a full month. I was home in my dis- trict telling senior citizens that they would most likely be faced with lower temperatures in their homes this winter, telling housing projects that they might well have to take the risk of maintaining only 20 percent supply of heating oil in their tanks-which may cause the sedi- ment to start flowing through the pipes and may cause the furnaces to shut down-and telling everyone that they would have to make the maximum effort to conserve. It was clear that things could well. be very serious this winter for many people, particularly the elderly and the poor. Then, all of a sudden, the Energy De- partment announced that we had plenty of home heating oil and were, in fact, shipping some of it to Iran. Mr. Chairman, the people in my dis- trict and throughout, the northeast were deeply concerned about that action. We have received a great many conflicting reports from. the Department of Energy. It is not at all certain that we are go- ing to have sufficient home heating oil this winter. Energy experts from across the country are doubting whether sup- plies will be sufficient this winter, partic- ularly if this winter follows the recent pattern of severe cold temperatures. A Small Business subcommittee staff re- port that was recently issued expressed grave doubts about supplies because, even if we meet the Energy Department goal for primary storage, the amounts of oil at the secondary and tertiary level-the retailers and the consumers-are unsea- sonably low. The overall situation is still not good. And, even if we do manage to squeak by with enough, Mr. Chairman, the. prices people will be paying are astound- ingly high-much higher in most in- stances than the price Iran paid for the amount they received. As Deputy Energy Secretary O'Leary testified a short while ago, people may literally be faced this winter with a choice between heat for their homes and food. When there is that kind of domestic impact involved, Mr. Chairman, it seems imperative to have export decisions like the Iranian one subject to congressional 0-- scrutiny-not necessarily to bar exports, but to insure that they do not threaten our own national interests. The amend- ment I now offer seeks to remedy this situation and allow for an open review of a few major energy export decisions with the potential for this kind of im- pact. First, by major export decisions I mean Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 September 21, 1979 two things: One is that the export would have to be going to a country with which we do not ordinarily trade in refined petroleum products, or the export would have to be significantly greater than usual. Exempt from coverage under this amendment will be all our usual trading partners, like Canada, Mexico, and the countries of the Caribbean. The other provision is that this amendment will ap- ply only to exports that would involve sending more than 250,000 barrels of re- fined petroleum or residual fuel oil an- nually to any one country. Here again. the vast majority of our usual, routine, day-to-day transactions will be exempt from the requirements of this amend- ment. In those few instances, however, in which a relatively large amount of re- fined petroleum is going to a country to which we do not ordinarily export such amounts, the amendment requires that the Department of Commerce, after re- ceiving a request for an export license, notify the appropriate committee of each House of Congress of the name of the ex- porter, the destination of the proposed export and the amount and price of the proposed export. Once the appropriate committees have received such notification, the amend- ment gives 5 days for a hearing to be called in either committee in regard to the proposed export, if they feel the pro- posal is significant enough and serious enough to warrant review. If a meeting were called, either committee would have 10 days-thlit is a total of 10 days from the time of ? notification-in which to actually hold a hearing. In all but the most indefensible instances, the maxi- mum delay imposed by this amendment would be 10 days from the time the De- partment of Commerce received the ex- port application. This amendment, Mr. Chairman, is drawn as carefully as possible to provide congressional review in a few important instances without in any way adversely affecting the great majority of transac- tions between this country and our trad- ing partners. I recognize, however, that even as moderate as this amendment is, it might still possibly be necessary in an emergency (such as an outbreak of hos- tilities in the Middle East) to forego any congressional review. As a result, there is one final provision in this amendment, one final measure of flexibility. It is that the Secretary of Commerce can waive any review-even the initial 5 days-by deeming the export vital to the national interest and certifying that delay would cause irreparable harm. This would pave the way for immediate export. In summary, Mr. Chairman, let me emphasize that my amendment does not seek to stop future energy exports, nor does it try to tie the hands of the Com- merce Department or of the energy ex- porting companies in dealings in foreign trade. It is specifically designed not to affect any routine transactions. Rather, it seeks to insure a congres- sional voice in a few unique instances in which the Departments of Commerce, Energy, and State are making rather radical departures from our usual trad- ing patterns, in transactions that in- volve relatively large amounts of refined petroleum products. In that limited num- ber of cases, Congress should have at least a few days to review the decisions of those agencies-decisions that are af- fecting the lives and well-being of a great many of our constituents. This is a most reasonable approach, Mr. Chairman, and I urge the support of my colleagues for. this important amendment. Mr. LAGOMARSINO. Mr. Chairman, will the gentleman yield? Mr. MOAKLEY. I would be glad to yield to the gentleman. Mr. LAGOMARSINO. Mr. Chairman, the gentleman's amendments refer to past historical quotas based on past trad- ing relations. Am I correct in my inter- pretation that means existing trading partners will not have to worry about the reliability of the United States as a sup- plier of refined oil products? Mr. MOAKLEY. The gentleman is cor- rect. Mr. LAGOMARSINO. Mr. Chairman, I believe the gentleman's amendments are very useful. For one thing, it will help to lay to rest the mistaken notion that it comes out of ordinary exports of oil products that are happening all the time. Mr. Chairman, on behalf of the mi- nority we accept the amendments. Mr. BEARD of Rhode Island. Mr.. Chairman, will the gentleman yield? Mr. MOAKLEY. I yield to the gentle- man from Rhode Island. Mr. BEARD of Rhode Island. Mr. Chairman, I would like to go on record as supporting the gentleman from Mas- sachusetts on his amendments. Mr. MOAKLEY. Mr. Chairman, I yield to the gentleman from Ohio (Mr. PEASE). Mr. PEASE. Mr. Chairman, I thank the gentleman for yielding: I would like to commend the gentle- man from Massachusetts for this amendment. I think it is an excellent one. . The whole situation points up the in- adequacy of the Carter administration in terms of its understanding of how Americans, ordinary Americans, respond to problems in the energy field. The gentleman's amendment is a construc- tive step toward overcoming or at least bypassing that inadequacy. I do com- mend the gentleman for his effort. Mr. MOAKLEY. Mr. Chairman, I yield back the balance of my time. The CHAIRMAN. The question is on the amendments offered by the gentle- man from Massachusetts (Mr. MOAK- LEY). The amendments were agreed to. AMENDMENT OFFERED BY MR. BINGHAM Mr. BINGHAM. Mr. Chairman, I offer an amendment. The Clerk read as follows: Amendment offered by Mr. BINGHAM: Page 63, insert the following after line 6: (c) Regulations implementing the pro- visions of section 10 of the Export Adminis- tration Act of 1969, as added by section 104(c) of this Act, shall be issued and take effect not later than July 1, 1980. 1HI 8315 Mr. BINGHAM. Mr. Chairman, the Members will recall that this section pro- vides somewhat complicated procedures for imposing deadlines on the various stages of the export administration proc- ess. The amendment would give the administration 9 months in which to bring those procedures into effect. We believe they are doing this administra- tively today. They are working out those procedures. I think the 9 months is necessary for them to get into line. Otherwise, they would have to impose these procedures by October 1, which is the date the bill otherwise would take effect. Mr. LAGOMARSINO. Mr. Chairman, will the gentleman yield? Mr. BINGHAM. I yield to the gentle- man from California. Mr. LAGOMARSINO. Mr. Chairman, I commend the gentleman for offering this amendment. I think it is an improve- ment to the bill and will take care of some problems. I accept it on behalf of the minority. The CHAIRMAN. The question is on the amendment offered by the gentle- man from New York (Mr. BINGHAM). The amendment was agreed to. AMENDMENT OFFERED BY MR. ZABLOCKI Mr. ZABLOCKI. Mr. Chairman, I of- fer an amendment. The Clerk read as follows: Amendment offered by Mr. ZABLOCKI: Page 63, after line 18, insert the following: TITLE III-MISCELLANEOUS SEC. 301. Section 402 of the Agricultural Trade Development and Assistance Act of 1964 is amended by inserting "or beer" In the second sentence immediately after 'wine". (Mr. ZABLOCKI asked and was given permission to revise and extend his re- marks.) Mr. ZABLOCKI. Mr. Chairman, this amendment is designed to correct an in- equity in present law which discrim- inates against beer as one America's ex- port items. The situation arises from the current wording of section 402 of Public Law 84- 480, the Agricultural Trade Development and Assistance Act of 1956. This act is the authorizing legislation for the U.S. Department of Agriculture's overseas market development program. Section 402 states that the term "agri- cultural commodity" under that act shall not include alcoholic beverages. Section 402 goes on to exempt wine from this prohibition, by providing that the U.S. wine industry can take part in market development activities financed by local currencies under this law which was de- signed to promote American agricul- tural export sales. Thus, under present law, while Ameri- can wines can be exhibited at USDA shows abroad, American beers cannot, notwithstanding that other nations have their competing export beers on display. Indeed, if it were a U.S. Commerce De- partment exhibit, American beers could be included; but not with the Agriculture Department. So we have a self-defeating situation such as occurred at a recent Harnml Pier International Food Show in Tokyo, Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 1 8316 CONGRESSIONAL RECORD - HOUSE September 21, 1979 where there were at least a dozen West German, Australian, and Dutch beers displayed, but none from the United States of America. My amendment would remove the dis- crimination in the present law by putting American beer exporters on the same basis as wine. Mr. Chairman, I am of course par- ticularly interested in removing this legal discrimination because of my desire to help Wisconsin's agricultural exports: Beer is an important product of my State. I also happen to think we produce the world's best. It is important to our State's economy. Some 10,000 workers are employed in the brewing industry in. Wisconsin. It is a billion dollar industry in our State. It is of course an important contributor to economies in other States. At this time of recession at home and big deficits in our foreign trade, it is in- cumbent upon us to do what we can to increase American sales abroad. The Secretary of Agriculture, the Hon- orable Bob Bergland, supports this amendment in the interest of American farmers. The Wisconsin State AFL-CIO and the State Brewers Association sup- port it. The Office of Management and Budget have indicated no objection to it. It does not involve any expenditure of taxpayers' funds. I ask unanimous consent to include in my remarks, letters of support from Sec- retary Bergland and from the Wisconsin Secretary of Agriculture, Trade and Consumer Protection, the Honorable Gary Rhode. I urge adoption of this amendment. DEPARTMENT OF AGRICULTURE, Washington, D.C., September 11, 1979. Hon. CLEMENT J. ZABLOCKI, Chairman, Commission on Foreign Affairs, House of Representatives, Washington, D.C. DEAR MR. OuAmaAN: This responds to your request for a report on a proposed amendment to H.R. 4034, the purpose of which would be to allow beer to be among the items included in U.S. Department of Agriculture export promotion exhibits abroad. As we understand the amendment, it would add the words "or beer" in the second sentence immediately following the word "wine" in Section 402 of the Agricultural Trade Development and Assistance Act of 1954. The Department favors enactment of the amendment. The omission of beer from those products eligible for export promotion assistance dis- criminates against beer produced in the United States. We favor increased exports of American agricultural commodities, and beer is an important product made from our farm products. The Office of Management sand Budget ad- vises that there is no objection to the pres- entation of this 'report from the standpoint of the President's program. Sincerely, BOB BERGLAND, Secretary. STATE OF WISCONSIN, May 17, 1979. Hon. CLEMENT J. ZA$Locar, V.S. House of Representatives, Rayburn House Office Bldg., Washington. D.C. DEAR REPRESENTATIVE ZABLOCKI: Our de- partment has been intensifying its efforts over the last few years to increase Wisconsin agricultural exports. We work with producers of raw agricultural commodities., as- well as suppliers of processed food and beverage products. We have found that the American Food Exhibits sponsored by the Foreign Agricul- tural Service 'of the U.S. Department of Ag- riculture (FAS/USDA) are a useful forum. in which to introduce and promote Wisconsin food products before an international audi- ence. Unfortunately, the members of one of our most important industries, Wisconsin's beer brewing companies, are precluded by law from showing their products at these ex- hibits. Public Law 89-808 approved in November 1966, amended P.L. 84-480, the authorizing legislation for, the overseas market develop- ment program for FAS/USDA. Section 402 of the 1966 legislation read in part: "The term 'agricultural commodity' shall not include alcoholic beverages . In 1971, P.L. 92-42 amended section 402, releasing the prohibition for domestic wine prodoucers. This was accomplished through the efforts of the California wine producers. The prohibition, however, remains in effect for beer. The inability of Wisconsin's brewers. to dis- play their products at, these overseas trade shows puts them at a great disadvantage rel- ative to beer producers from other countries. For example, at the recent Harumi Pier In- ternational Food Show in Tokyo, Japan, there were at least a dozen West German, Australian, and Dutch beers displayed. There were no American beers on display. in the U.S. exhibit. Wisconsin's beer industry is a major com- ponent of our state's economy. Approxi- mately 10,000 people are directly employed by local brewing companies, which generate a total annual revenue of almost one billion dollars. Of course; the wider effect on the economy can be imagined when one considers all the other Wisconsin companies that sup- ply and service the brewing industry. The prohibition of beer at government-sponsored international food shows appears to be unique to the United States at this time, as evidenced by the plethora of foreign beers seen on display overseas. Even U.S. wine is not so hindered in its international market- ing efforts. We feel that it would. be of benefit for the Wisconsin beer- industry, the farmers who provide the raw materials for the brewing process, and the state's economy in general for this law to be amended further so as to allow Wisconsin beer to gain greater interna- tional exposure. We would like to urge you to study this legislation with the prospect of altering the inequity that allows U.S. wine to be displayed at USDA shows, while our' beer is not. Such a change would not only be in the best interest of. fair competition, but also would stimulate growth in the important Wisconsin. brewing sector. At a time when our national. balance of trade is in deficit, State and Federal govern- ments must make every attempt to remove regulations that unnecessarily impede the expansion of exports. There is considerable interest in Wisconsin for an amendment that would allow beer to be shown at USDA shows, including the Wisconsin State Brewers As- sociation and the Wisconsin State. AFL-CIO. We would be pleased to assist you in any way with regard to this issue. Thank. you for your kind attention. Sincerely, - GARY E. RHODE, Secretary. Mr. BINGHAM. Mr. Chairman, will the gentleman yield? Mr. ZABLOCKI. I yield to the gentle- man from New York. Mr. BINGHAM. Mr. Chairman, I am happy to concur in the gentleman's amendment. Mr. ZABLOCKI. I rest my case, Mr. Chairman. The CHAIRMAN. The question is on ,the amendment offered by the gentle- man from Wisconsin (Mr. ZABLOCKI). The, amendment was agreed to. Mr. BINGHAM. Mr. Chairman, I move to strike the last word., Mr. Chairman, just to lay out the pro- cedure, we have 15 more minutes. We can conclude the consideration. of this bill with. a record vote orr the gentle- man's amendment to start at 1 o'clock.. I see no reason for a recorded vote on final passage. Mr. ASHBROOK. Mr. Chairman, just a minute. Mr. BINGHAM., Mr. Chairman, the gentleman may really be fouling us up here. The final passage of the bill is not controversial. Mr. ASHBROOK. Wait a second. What did the gentleman mean, we will be foul- ing it up? by orderly legislative process? The CHAIRMAN. Regular order will be observed. Mr. BINGHAM. I tried to explain be- fore. We have been trying desperately to finish this bill today. I am just asking for- consideration.. If anyone wants to vote against final passage of the bill, wants to call for a record vote, that is: their intention. I wanted to explain to the gentleman from California (Mr. DANNEMEYER) that I felt the gentleman's amendment could be dealt with. The gentleman would have the full 5 minutes to present it. Others can present their remarks and revise and extend and start that record vote. at 1 o'clock and then the Members call leave. If Members wish to call for a recorded vote on final. passage. and wish to do so, that is their privilege.. Mr. DANNEMEYER. Mr. Chairman, I make the point of order that a quorum is not present. The CHAIRMAN. The Chair will count. Eighty Members are present, not a quorum. The Chair announces that pursuant to clause 2, rule XXIII, he will vacate pro- ceedings under the call when a quorum of the Committee appears. Members will record their presence by electronic device. The call was taken by electronic de- vice. ^ 1250 QUORUM CALL VACATED The CHAIRMAN. One hundred Mem- bers have appeared. A quorum of the Committee of the Whole is present. Pur- suant to clause 2, rule XXIII, further proceedings under the call shall. be con- sidered as vacated. The Committee will resume its busi- ness. Are there any further amendments? AMENDMENT OFFERED BY MR. DANNEMEYER Mr. Chairman, I offer an amendment. The Clerk read as follows: Amendment offered by Mr. DANNEMEYER: Page 62 after line 24 add the following new section and renumber the succeeding sec- tions accordingly. SEC. 124. Notwithstanding any other pro- vision of this Act subsection (1) of section 7 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 Approved For Release 2008/10/27: CIA-RDP85-00003RO00100030007-7 September 21, 1979 CONGRIESS ONAIL II8IECORD-IFIIOUSII3 of the Export Administration Act of 1969 as such section is redesignated by section 104(a) of the Act, is amended- (1) in paragraph (1)- (A) by striking out clause (A) and insert- ng in lieu thereof the following: "(A) is orted to another country in exchange or the same quantity of crude all being exported from an adjacent foreign country to the United States, or", and (B) by striking out "during the 2-year- period beginning on the date of enactment of this subsection"; and ,(2) by striking out paragraph (2) and inserting in lieu thereof the following: "(2) Crude oil subject to the prohibition contained in paragraph (1) may be exported only if- '9~(A) the President makes and publishes express findings that exports of such crude oil, including exchanges- "(I) 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 refln- erdes which purchase the imported crude oil being lower than the acquisition costs such refiners would have to pay for the domes- tically produced oil which is exported, and (II) commensurately reduced wholesale and retail prices of products refined from such imported 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 inter- rupted, threatened, or diminished; "(iv) are clearly necessary to protect the national interest; and "(v) are in accordance with the provisions of this Act; and "(B) the President reports such findings to the Congress and the Congress, within sixty days thereafter, passes a concurrent resolution approving such exports on the basis of the findings. Findings of lower costs and prices described in subparagraph (A) (ii) should be audited and verified by the General Accounting office at least semiannually. "(3) Notwithstanding any other provision of this section and notwithstanding subsec- tion (u) of section 28 of the Mineral Leasing Act of 1920, the President may. export on otherwise subject to this subsection to any nation pursuant to a bilateral international oil supply agreement entered into by the United States with such nation before May 1, 1979. "(4) The limitations of this subsection, and the requirement contained in subsection (u) of section 28 of the Mineral Leasing Act of 1920 that the President make certain find- ings, shall be effective only during a period in which, as determined by the President, the major oil exporting countries have imposed severe restrictions on the export of oil to the United States.". Mr. DANNE MYER (during the read- ing). Mr. Chairman, I ask unanimous consent that the amendment be con- sidered as read and printed in the RECORD. The CHAIRMAN. Is there objection to ,tW request of the gentleman from Call- 1 ynia? There was no objection. Mr. DANNEMEYER. Mr. Chairman, I ant offering this amendment in an effort to resolve a complication that is Interfer- ing with our domestic oil supply situa- tion. Currently, our North Slope Alaskan oil fields are expanding their production in spite of the fact that they presently outproduce the refinery capacity of the closest domestic refining market, the west coast. The consequent higher costs of shipping excess Alaskan crude oil to the gulf coast ports, due to the inability of west coast refineries to accommodate it, represents dollars that could either be used to develop new sources of oil or could be passed along to the consumers in the form of lower prices at the pump. Ironically, Mexico, which is on its way -to becoming a major world supplier of oil, has somewhat the same problem. While the closest markets for its oil. much of which is located in the Gulf of Mexico; are obviously the gulf coast ports of the United States, it may be shipping oil through the Panama Canal to Japan under terms of a proposed agreement. Paradoxically, of course, Japan is a lot closer to Alaska than it is to Mexico. With the energy shortage being a fact of life, with inflation running at 13 per- cent and with the easy availability of Mexican oil, limiting ourselves to less oil, or higher prices, or both makes no more sense than it does for Mexico, which needs every peso it can get to pro- mote economic development, to ship oil through a canal and across an ocean when it could ship it just across a gulf. What would make a whole lot more isense would be for this Congress to reject the idea of a prohibition on Alas- kan oil imports so that the way would be clear for a barter arrangement to be worked out between the United States, Japan, and Mexico. The United States could send some of its 'surplus Alaskan oil, surplus being defined as that amount over and above west coast refinery capac- ity, to Japan in lieu of Mexican oil and in turn, the Mexicans would send the oil that would otherwise go to Japan, to U.S. gulf coast ports. Oil shipments would be speeded up, hopefully costs would be lessened and the dependence on the Panama Canal, which could al- ways be nationalized and closed now that the United States has surrendered its claim - of sovereignty, would be sub- stantially reduced. Furthermore, rela- tions between the United States and Mexico, strained in the aftermath of the President's less than successful recent visit, would stand a good chance of being improved. So that such a barter arrangement could be worked out, if the parties were willing, my amendment would waive the Alaskan oil export prohibition except when foreign nations impose severe re- strictions on the export of oil to the United States. To give my colleagues a better idea of why this is needed and how it would work, let me elaborate for a moment on the remarks I made at the outset. At Present, the North Slope oil fields in Alaska produce 1.2 million barrels of oil per day, a rate of production that will soon rise by 200,00.0 barrels per day and will ultimately peak at two million barrels per dav, the capacity of the trans-Alaska pipeline. From there, one would expect the oil to be shipped to the closest point, the west coast and either H 8317 refined or piped East. However, west coast refineries can refine only 850,000 barrels a day of crude oil, due to severe environmental restrictions on refinery construction and expansion, and there is no west-to-east pipeline for the ship- ment of crude oil, so the only way to get Alaskan crude in excess of west coast refinery capacity to the Middle West and Texas is to ship it via the Panama Ca- nal. This, in turn, means that the large oil tankers that bring the oil down from Alaska must offload the oil onto a fleet of small tenders for the canal passage. Thus, the extra cost of shipping has been estimated to add roughly $2 to the price of oil-not an inconsequential sum even in these days of high oil prices. The Japanese, likewise, are faced with the problem of higher than necessary shipping costs when importing oil from Mexico. Japan imports almost all its oil and is bargaining with the Mexican Gov- ernment for the importation of crude oil, but Mexico's only point of oil export is on the Gulf of Mexico. Consequently, Mexican oil bound for Japan must trans- ship the Panama Canal just like oil bound for Galveston from Alaska. The closer proximity of Alaska to Ja- pan, and the fact that oil from Alaska to Japan would not have to go through the canal, has apparently not escaped the attention of the Japanese for they have indicated an interest in buying approxi- mately 300,000 barrels per day of Alas- kan crude oil now. This figure also cor- responds to the amount Japan may con- tract to purchase from the Mexican Gov- ernment. Likewise, this figure is close to the amount of Alaskan oil presently being produced in excess of west coast refinery capacity, so we could easily make a deal with Japan to meet their oil needs and with Mexico to receive the oil that would have been sent to Japan. In this man- ner, all parties could get their oil more quickly and save some money to boot. The positive effects of this action would either be a reduction in cost of crude oil at the refinery, or an added incentive to production, or a combination of the two. The nature of possible savings at the re- finery would be dependent upon market supply conditions from time to time. If there were a crude oil supply shortage, the price would tend to drop the degree it would if there were a condition of over- supply of crude oil to refineries. Trans- portation cost savings not realized at the refinery or the gas pump would be re- tained by the suppliers and these addi- tional profits could reasonably be ex- pected to facilitate further exploration and development in the energy field. The CHAIRMAN. The time of the gen- tleman from California (Mr. DANNE- MEYER) has expired. Mr. DANNEMEYER. Mr. Chairman, I ask unanimous consent that I may be allowed to proceed for 5 additional minutes. The CHAIRMAN. Is there objection to the request of the gentleman from California? Mr. BAILEY. Mr. Chairman, I object. The CHAIRMAN. Objection is heard. Mr. BINGHAM. Mr. Chairman, I move to strike the requisite number of words, Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 I[[ 8318 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7 CONGRESSIONAL RECORD-HOUSE September 21, 1979 fornia'(Mr. DANNEMEYER). opposed to the amendment offered b (Mr. BINGHAM) for his courtesy. ever-decreasing domestic oil reserves for Mr. Chairman, this amendment can American consumption and resist efforts have far-reaching positive effects on our balance of trade position regarding both Japan and Mexico. In 1977 our balance- of-trade deficit with Japan was approxi- mately $8.1 billion. If we were to export the majority of our current surplus ANS oil (300,000 barrels per day) at $20 per barrel we could reduce this deficit by $2.19 billion. In 1977 Mexico had a trade deficit with the United States in the amount of $121 million. The purchase of additional Mexican crude oil could create a positive trade balance with Mex- ico that could help facilitate industrial- ization in a nation that cannot employ its people. Such industrialization repre- sents a long term solution to the prob- lems of unemployment and illegal immi- gration to the United States that has plagued United States-Mexico relations for so long. The benefits from this facet of this amendment bear careful consid- eration by the House in view of their sig- nificant foreign policy and economic im- plications. My amendment proposes that export of Alaskan crude oil be permitted only when a barter arrangement may be worked out with a contiguous foreign na- tion. This guarantees that export of crude oil will not result in a net loss of oil to the nation, but will insure faster more economical deliveries. The refer- ence to a contiguous foreign nation nar- rows the applicability of this provision, but it also prevents further dependency upon potentially interruptible foreign sources since a foreign source, that is ad- jacent to our borders, may be made more secure than ones that depend upon ocean shipment of supplies. There is additional benefit, heretofore unmentioned, that 'would come out of such a barter arrangement. Interesting- ly, Mexican crude oil, while similar in sulfur content to Alaskan crude, has a lower specific gravity. This, in turn, per- mits refiners to obtain a higher percent- age of gasoline from each barrel of crude oil delivered. I need hardly remind anyone here of the significance of that fact in terms of the gas lines we have been experiencing lately. The objection has been raised that adoption of this amendment would hurt our merchant marine. But this argument overlooks the fact that additional oil may be produced to offset, at least some- what, the reduction in shipping distance and that this additional production might keep our ships busy. Furthermore, the fate of our merchant marine is only one of a number of factors that have to be considered here. Even if the critics are right, should that concern outweigh the incentives to production, the possible savings to consumers, and the prospect of improved relations with our neighbor to the south? I think not. A balance has to be struck and adoption of this amend- ment to waive the prohibition on Alaska oil exports would help strike it. I urge adoption of the amendment. to allow exportation of Alaskan oil with- out careful examination of the costs and benefits. The bill, as it is written now, does not prevent Alaskan crude from ever being exported, but it does seek to insure that if and when it becomes available for trade it will be to the benefit of the American consumer and not to just the oil-producing corporations. It is our responsibility to retain a con- gressional voice in determining our ex- port options, and the bill presently main- tains that any oil exchange plan must be approved by both Houses of Congress and not be left up solely to the executive branch. Let's look at who would benefit from an oil exchange. First, the price of Alaskan. oil is already completely decontrolled. Since it is pegged to world prices of crude oil, OPEC increases result in price in= creases for Alaskan oil. This has proved to be very profitable for the oil companies. According to an article in "Petroleum Intelligence Week- ly" in June of this year, after-tax profits on Alaskan sales to the United States west and gulf coast markets have soared past $3 a barrel and could reach $4.10, which would be an 85-percent increase. The incentive for the oil corporations in shipping this oil to Japan rather than the continental United States is that they will save about $2 per barrel in transportation costs, increasing their profits even more-not to mention that the tankers they use can be foreign-flag ships using foreign crews. Second, Alaskan oil's heavier gravity makes it ideally suited for the production of home heating oil. At a time when we are trying to build up our heating oil stocks for the winter, especially for the oil-dependent New England region. I feel we should not ease the restrictions on its export. How can we justify sending domesti- cally produced oil to Japan or any coun- try when the American people are still skeptical about the origins of our summer liquid fuel shortages? We are now at a time when our President, along with the Congress, is trying to renew confidence in Government and I believe that any exportation of domestic oil would seri- ously undermine our efforts. I urge defeat of the amendment.o ^ 1300 Mr. BINGHAM. Mr. Chairman, I move that the Committee do now rise. The motion was agreed to. Accordingly the Committee rose; and the Speaker pro tempore (Mr. MURTHA) having assumed the chair, Mr. SEIBER- LING, Chairman of the Committee of the Whole House on the State of the Union, reported that that Committee, having had under consideration the bill (H.R. 4034) to provide for continuation of au- thority to regulate exports, and for other purposes, had come to no resolution thereon. LEGISLATIVE PROGRAM (Mr. CONABLE asked and was given permission to address the House for 1 minute.) Mr. CONABLE. Mr. Speaker, I reserve this time for the purpose of inquiring o; the distinguished majority leader about the schedule for next week. Mr. WRIGHT. If the gentleman will yield, there are three things whicl as an absolute mum w m s a end to if we--a-r-e-Fo avail ourselves o e o?- wor period for the first part of October. e ee thznes_are: The continu- ing a ro ri he hrn1- ion and the Panama Canal imple- mntrig legislation. seems obvious and beyond the ne- cessity of any explanation that the House could not in good conscience abandon its duty and leave the public in the lurch with those needs unat- tended. Each of those bills has a very short fuse. They should be attended be- fore the 1st of October, and that means next week. Mr. Speaker, having said that, I will give to the gentleman and the Members the program as I see it from the vantage point of this far out. On Monday we plan no votes at all, and recorded votes would be postponed until Tuesday. There is one District bill, the D.C.. Retirement Reform Act. After that we would proceed to eight bills listed under suspension of the rules, pro- ceed with -H.R. 2795, International Travel Act authorizations, and H.R. 3642, emergency medical services reauthoriza- tions, doing general debate only on those two bills. In each instance, they are open rules, with 1 hour of general debate authorized. Tues the House would meet at noon. ere would follow the recorded votes on any suspensions and, if re- quired, on the District bill, which would have been debated on Monday. . -o ed to the ,oMid- of House Joint so u Io 04, Continuina A ropriations o al QQn ~r ?u__ich a rue already has 1 ,a ope t o complete tion; then procee a consideration S!??. 2795, International Travel Act authorizations, and H.R. 3642, emergency medical services reauthorizations, voting on the amendments and, we would hope, on the bills. On Wednesday, Thurdsay, and Friday we would meet at 10 a.m. We would come to the second concurrent budget resolu- tion, then to the Public Debt Limitation, following that with S. 832, FEC amend- ments; g.R. Defense appropria- tions, fiseayear 33000, DO au or ions, 1980; H.R. 3180, DOE aff" thorizations, 1979; H.R. 2859, Domestic Volunteer Service Act amendments; H.R. 2061,'LEAA reauthorizations; and H.R. 3303, Justice Department authorizations, 1980. We make clear, Mr. Speaker, that con- erence reports may be brought up at Approved For Release 2008/10/27: CIA-RDP85-00003R000100030007-7