EXPORT ADMINISTRATION ACT OF 1979

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85-00003R000100030012-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 10
• Document Creation Date: December 21, 2016
• Document Release Date: October 27, 2008
• Sequence Number: 12
• Publication Date: July 18, 1979
• Content Type: OPEN SOURCE

,1~HA b.
S 9722
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CONGRESSIONAL RECORD -SENATE July 18, 1979
The PRESIDING OFFICER. Is there
a sufficient second? There is a sufficient
second.
The yeas and nays were ordered.
Mr. JOHNSTON. Mr. President, I
yield back the remainder of my time.
The PRESIDING OFFICER. Is all time
yielded back?
Mr. BELLMON. I yield back my time.
The PRESIDING OFFICER. All time
has been yielded back. The bill having
been read the third time, the question is,
Shall it pass. The yeas and nays have
been ordered. The clerk will call the
roll.
The assistant legislative clerk called
the roll.
Mr. CRAN3TON. I announce that the
Senator from Tennessee (Mr. SASSER),
and the Senator from Illinois (Mr. STE-
vENSON) are necessarily absent.
Mr. STEVENS. I announce that the
Senator from New Mexico (Mr. Do-
IIENICI) is necessarily absent.
I also announce that the Senator from
Tennessee (Mr. BAKER) Is absent to at-
tend a funeral.
The PRESIDING OFFICER. Are there
other Senators present desiring to vote?
Are there others present desiring to
vote?
The result was announced-yeas 90,
nays 6, as follows:
(Rollcall Vote No. 185 Leg.]
YEAS-90
Armstrong
Hart
Muskie
Baucue
Hatch
Nelson
Bayh
Hatfield
Nunn
Bellmon
Hayakawa
Packwood
Bentsen
Heflin
Pell
Boren
Heinz
Percy
Boschwttz
Hollings
Pressler
Bradley
Huddleston
Pryor
Bumpers
Humphrey
Randolph
Burdick
Inouye
Rlbicoff
Byrd, Robert O. Jackson
Riegle
Cannon
Javita
Sarbanea
Chiles
Jepsen
Schmitt
Church
Johnston
Schweiker
Cochran
Kassebaum
Simpson
Cohen
Kennedy
Stafford
Cranston
Laxalt
Stennis
Culver
Leahy
Stevens
Danforth
Levin
Stewart
DeConcini
Long
Stone
Dole
Lugar
Talmadge
Durenberger
Magnuson
Thurmond
Durkin
Mathias
Tower
Eagleton
Matsunaga
Tsongas
Exon
McClure
Wallop
Ford
McGovern
Warner
Garn
Melcher
Weicker
Glenn
Metzenbaum
Willdams
Goldwater
Morgan
Young
Gravel
Moynihan
Zorinaky
NAYS-6
Biden
Chafee
Roth
Byrd,
Helmg
Harry F., Jr.
Proxmire
NOT VOTING-4
Baker Sasser Stevenson
Domenici
So the bill (H.R. 4388) was passed.
Mr. JOHNSTON. Mr. President, I
move to reconsider the vote by which
the bill was passed.
Mr. ROBERT C. BYRD. I move to lay
that motion on the table. '
The motion to lay on the table was
agreed to.
Mr. JOHNSTON. Mr. President, I
move that the Senate insist on its
amendments and request a conference
with the House on the disagreeing votes
thereon, and that the Chair be author-
part
ized to appoint the conferees on the
of the Senate.
the
The motion was agreed to; and
Chair appointed Messrs. JOHN
YRD,
STENNIS, MAGNUSON, ROBERT C. B
SER,
HOLLINGS, HUDDLESTON, BURDICK, SAS
KER,
DECONCINI, HATFIELD, YOUNG, SCHWE
MrrT
BELLMON, MCCLURE, GARN, and SC
conferees on the part of the Senate.
Mr. ROBERT C. BYRD. Mr. President,
for the third time today, I compliment
Mr. JOHNSTON.
The Energy and Water Develop
went
appropriations bill, considered by
the
Senate today is a complex me
I H measure managed
which contains vitally important
pro-
jects. The distinguished Senator from
Louisiana (Mr. JOHNSTON) has
_
this bill admirably under trying circ
and
stances. As chairman of the Energy
Water Subcommittee of the Appropria-
the
tions Committee, he has overseen
formulation of this bill in great de
The distinguished Senator from
Ore-
gon (Mr. HATFIELD) has contributed
equal measure to the consideration
this bill. His long experience as ranking
member of the subcommittee provided
additional expertise to the Senate
n its
deliberations on the Energy and W
Development bill.
Two key areas of national policy are
detail. i Water out by. p
affected by this measure-energy
re_
search and development and Improve-
ment of our water resources. In m
any
cases, these two issues are inseparable.
Hydroelectric projects are the p
rime
examples of that fact. Transports
Lion
of energy resources is facilitated by
the
improvements to navigable' water
ways
included in the bill.
Basic science research carried ou
the Department of Energy is funded
at a
level which will provide the maxi
mum
amount of benefit for, each dollar.
More
advanced research into solar power
is
provided for in order for the United
States to have as many energy options
available as possible.
In short, the Energy and Water
De-
velopment appropriations bill coupled
with the Interior appropriations
bill,
which we will consider at a later
oint,
provide a sound structure on whit
h
shape our energy policy and promote the
mittee for its fine work on this di
matter.
Mr. JOHNSTON. I yield.
Mr. MAGNUSON. Mr. President, as
chairman of the Appropriations Com-
mittee, I congratulate the Senator for
the fine work that has been done on this
bill. I know how difficult it is. It is not
necessarily the most complex bill. I will
not give way to the HEW bill. It is next
to the HEW bill in complexity.
Proctor and the others have done a
tremendous amount of work. I do not
know how many witnesses the committee
heard this year. I recall that I used to
hear 600 or 700 witnesses.
Mr. JOHNSTON. More than 2,000 ap-
peared this year. We have large groups
and delegations-and about 700 or 800
witnesses presented testimony.
Mr. MAGNUSON. It is a tremendous
job, and I congratulate the Senator from
Louisiana as well as the Senator from
Oregon for the way the bill was handled
on the floor.
Mr. JOHNSTON. I thank the distin-
guished chairman* of the full commit-
tee, who has been a great help in get-
ting this bill passed. He attended many
of our committee meetings and has been
a great help.
Also, the distinguished ranking mi-
nority member, Senator YOUNG, I be-
lieve, attended every meeting of the
committee. He is an expert on water re-
source matters as well as an expert on
energy, and he has been a great help
with the bill.
Mr. YOUNG. Mr. President, will the
Senator yield?
Mr. JOHNSTON. I yield.
Mr. YOUNG. Mr. President, this bill
has become much more complicated than
it used to be. I would not want to be
the ranking minority member on the
subcommittee now.
The energy part of it is so vast and
complicated now that I do not know
how the committee can' even deal with
it. The excellent staff is most helpful.
I commend both the Senator from
Louisiana (Mr. JOHNSTON) and the Sen-
ator from Oregon (Mr. HATFIELD) for
the fine job they have done and for the
patience and understanding they have
exhibited. I also commend the able staff
members on both sides, especially Proc-
tor Jones, who I consider one of the
Mr. JOHNSTON. I thank the m
ity leader.
out this bill. It really has been a tea
i effort and a bipartisan effort.
I especially thank Proctor Jones, Dave
Gwaltney, and Mrs. Gloria Butland, of
the committee staff, who have worked
day and night, literally, sometimes
through the night, for days on end, to put
together a very difficult bill.
I think we have an excellent bill here,
one that has been well thought out.
I thank all those responsible for their
help in getting the bill passed.
Mr. MAGNUSON. Mr. President, will
the Senator yield?
Mr. JOHNSTON. I thank the Senator,
and I share the Senator's opinion of
Proctor Jones.
EXPORT ADMINISTRATION ACT OF
1979
The PRESIDING OFFICER. Under the
previous order, the Senate will proceed
to the consideration of S. 737, which
will be stated by title.
The assistant legislative clerk read as
follows:
A bill (S. 737) to provide authority to reg-
ulate exports, to improve the efficiency of
export regulation, and to minimize inter-
ference with the right to engage in com-
merce.
The Senate proceeded to consider the
bill, which had been reported from the
Committee on Banking, Housing, and
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July 18, 1979 CONGRESSIONAL RECORD - S ENATIE
and .B. Russell Dam and the construction
of a fifth power generation unit at Lake
Hartwell and the navigation projects in
various rivers and harbors will o be ex-
tremely beneficial to the continued eco-
nomic growth V South Carolina and
ber of projects of
citizens of South
well as various independe
cluding the Appalachian
o Mr. MUSKIE.. Mr. President, the Sen-
ate has before it H.R. 4388, the Energy
and Water Development appropriation
bill for fiscal year 1980.
The bill as reported provides $10.8
billion in new budget authority. Outlays
associated with the. bill total $5.9 billion.
Under section 302(b) of the Budget
Act, the Appropriations Committee di-
vides among its subcommittees the total
budget authority and outlays allocated
to the committee under the first budget
resolution. The Appropriations Commit-
tee has allocated $11.1 billion in budget
authority and $9.7 billion in outlays to
the Energy and Water Development Sub-
committee.
The funds provided by H.R. 4388 as
As the floor manager knows, the Presi-
dent's fiscal year 1980 budget does not in-
clude any moneys for the Mid-Valley
Canal. The Bureau of Reclamation re-
cently suspended the study and is prey
paring a concluding report on the pro-
posed Mid-Valley Canal because there is
not presently an adequate supply of
water for the project. The State of Cali-
fornia and the farmers on the east side
of the San Joaquin Valley want the Bu-
reau of Reclamation to complete the
feasibility study nevertheless. The Bu-
reau has already invested $546,000 and 8
years in the study. I think that it makes
little sense not to complete the study as
additional water supplies may well be
available in the future. Shasta Dam,
for example, may be enlarged, thus pro-
viding the necessary water supply.
I understand that an appropriation of
$150,000 in fiscal year 1980 would per-
mit the Bureau of Reclamation to com-
plete the Mid-Valley feasibility study. I
have talked to the floor manager of the
bill, and appreciate his concern about
accepting any increases in this bill, re-
gardless of the merit of the request. How-
ever, I understood the Senator from
Louisiana to say that he would include
funds for the Mid-Valley Canal study in
the supplemental appropriations bill, or
if there is no fiscal year 1980 supplemen-
tal, in the regular bill next year. Is that
correct?
Mr. JOHNSTON. That Is correct,
based on the information that there are
potential additional water supplies. In
that case, we will fund the Mid-Valley
Canal feasibility study in the next an-
nual appropriations bill, either the fiscal
year 1980 supplemental or the fiscal year
1981 bill, or possibly even a transfer of
funds, or reprograming request.
Mr. CRANSTON. That being the case,
would the Senator agree with me that
the Bureau of Reclamation should re-
sume the Mid-Valley study and not pre-
pare the concluding report?
Mr. JOHNSTON. Yes, I agree with the
Senator from California that the Bu-
reau of Reclamation should keep the
study open as we intend to follow up on
this to see that the funds necessary to
complete the Mid-Valley Canal feasi-
bility study are made available.0
reported, together with action completed
or under way, plus possible later require-
ments known at this time put the sub-
committee $0.4 billion above its budget
authority allocation and $0.7 billion
above its outlays allocation. This would
not be consistent with the targets in the
first budget resolution.
s t that a table showing the relation-
sh of this bill and possible later re-
qui ments to the subcommittee alloca-
tion printed in the RECORD at this
point.
H.R. 9$8 Energy and water development
appro tion bill, relationship to sub..
committe section 302(b) allocation
[$ in billions]
underway -------------
-
H.R. 4388, as reported------
10.8
Amount over (+) or under
(-) subcommittee allo-
Possible later
requirements:
Energy supply------------
+0.5
Water resources-----------
+0.1
October 1979 pay raises----
+0.1
Possible amount over (+)
or under (-) subcom-
mittee allocation--------
+0.4
Budget
authority Outlays
4.1
5.9
Even though this bill, together with
possible later requirements will exceed
the subcommittee's allocation, I support
it. I realize, as I am sure my colleagues
do, that events since the first budget
resolution have developed a consensus in
the Congress and in the country on
broader based energy programs.
But, Mr. President, the Senate should
be aware that there are serious pressures
on the Appropriations Committee re-
garding the.fiscal year 1980 budget. Un-
fortunately, there do not appear to be
any compensating surpluses available in
any other subcommittee allocations to
make up for the overages in this bill. In
fact, several other subcommittees may
exceed their allocation when foreseeable
supplemental requirements are taken
into account.
It now appears that the Appropriations
Committee may actually exceed the
amount allocated to it in the budget
resolution by up to $5.6 billion in budget
authority and $4.7 billion in outlays
when all the regular 1980 appropriation
bills and all the 1980 supplemental re-
quirements are taken into account.
We now face the prospect that these
appropriations excesses may increase the
1980 deficit by as much as $5 to $6 bil-
lion. In fact, the combinations of these
additional appropriations and the ap-
parent economic slowdown threaten to
drive the 1980 deficit higher than 1979.
It now appears that the deficit for 1979
will be about $30 billion. Instead of the
$23 billion figure -we contemplated for
the first resolutiop, it appears that the
deficit for 1980 Will rise by $6 billion.
Taking into account the appropriation
bill increases over the budget resolution,
the deficit may rise to $34 or $35 billion,
reversing the trend of the last 5 years
and increasing the deficit to unaccept-
able levels.
Today, Mr. President, Senator BELL-
MoN, the ranking Republican member of
the Budget Committee, and I have writ-
ten to the distinguished chairman of the
Senate Appropriations Committee and
his ranking member to discuss the total
appropriations situation. In our letter
we described the circumstances creating
the pressures for'these increases.
First, some other committee have
failed to make about $1 billion in legis-
lative savings contemplated in the budget
resolution in appropriated programs.
Second, costs for some programs sanc-
tioned by the resolution have risen un-
foreseeably.
Third, the President's new energy ini-
tiatives exceed those contemplated in the
budget resolution by up to $2.9 billion in
budget authority and $1.2 billion in out-
lays.
Fourth, for reasons apart from these
first three causes, the Appropriations
Committee itself has spent as much as
$1.5 billion in budget authority and $1.2
billion.in outlays above the budget reso-
lution allocation to it.
In light of these increases, Mr. Presi-
dent, I hope that the Appropriations
Committee will reduce other appropria-
tions for fiscal year 1980 to make room
for the supplemental needs now antici-
pated in the energy and Labor-HEW
n the event that such reductions are
no ade, there will be no alternative but
to sort amendments to reduce appro-
priate which are not of compelling
necessi at this time.
Fins, 11 n the event floor amendments
prove ina quate to reduce these in-
creases fort a first time a reconciliation
instruction to the Appropriations Com-
mittee may be required in the second
Mr. President, pport of the higher
funding levels for a energy programs
in this bill because o changed national
priorities must not pr lude close scru-
tiny of all future appro iations bills.
We will work with the propriations
Committee and do everythi possible to
assure that the deficit for fist year 1980
remains below the fiscal year 1979
deficit.0
Mr. JOHNSTON. Mr. President, I ask
for the yeas and nays on passage.
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July 18, 1979 CONGRESSIONAL RECORD -SENATE
Urban Affairs with an amendment to
strike all after the enacting clause and
insert the following:
That this Act may be cited as the "Export
Administration Act of 1979".
FINDINGS
SEC. 2. The Congress makes the following
findings:
(1) The ability of United States citizens
to engage in international commerce is a
fundamental concern of United States pol-
icy.
(2) Exports contribute significantly to the
balance of trade, employment, and produc-
tion of the United States.
(3) The availability of certain materials
at home and abroad varies so that the quan-
tity and composition of United States ex-
ports and their distribution among import-
ing countries may affect the welfare of the
domestic economy and may have an impor-
tant bearing upon fulfillment of the foreign
policy of the United States.
(4) Exports of gooas or technology with-
out regard to whether they make a signifi-
cant contribution to the miltary potential of
individual countries or combinations of
countries may adversely affect the national
security of the United States.
(5) The restriction of exports from the
United States can have serious adverse cf-
fects on the balance of payments and on do-
mestic employment, particularly when re-
strictions applied by the United States are
more extensive tahn those imposed by other
countries.
(6) Uncertainty of export control policy
can curtail the efforts of American business
to the detriment of the overall attempt to
improve the trade balance of the United
States and to decrease domestic unemploy-
ment.
(7) Unreasonable restrictions on access'to
world supplies can cause worldwide political
and economic instability, interfere with free
international trade, and retard the growth
and development of nations.
(8) It is important that the administra-
tion of export controls imposed for national
security purposes give special emphasis to
the need to control exports of technology
(and goods which contribute significantly to
the transfer of such technology) which could
make a significant contribution to the mili-
tary potential of any country or combina-
tion of countries which would be detrimental
to the national security of the United States.
DECLARATION OF POLICY
maximum extent possible in cooperation
with all nations, and (B) to encourage ob-
servance of a uniform export control policy
by all nations with which the United States
has defense treaty commitments.
(4) It is the policy of the United States
to use its economic resources and trade po-
tential to further the sound growth and
stability of its economy as well as to further
its national security and foreign policy
objectives.
(5) It is the policy of the United States-
(A) to oppose restrictive trade practices
or boycotts fostered or imposed by foreign
countries against other countries friendly
to the United States or against any United
States person;
(B) to encourage and, in specified cases,
require United States persons engaged In
the export of goods and technology or other
information to refuse to take actions, in-
cluding furnishing information or entering
into or implementing agreements, which
have the effect of furthering or supporting
the restrictive trade practices or boycotts
fostered or imposed by any foreign country
against a country friendly to the United
States or against any United States per-
son; and
(C) to foster international cooperation
and the development of international rules
and institutions to assure reasonable access
to world supplies.
(6) It is the policy of the United States
that the desirability of subjecting, or con-
tinuing to subject, particular goods or tech-
nology or other information to United States
export controls should be subjected to re-
view by and consultation with representa-
tives of appropriate United States Govern-
ment agencies and private industry.
(7) It is the policy of the United States to
use export controls, including license fees, to
secure the removal by foreign countries of
restrictions on access to supplies where such
restrictions have or may have a serious do-
mestic inflationary impact, have caused or
may cause a serious domestic shortage, or
have been imposed for purposes of influenc-
Ing the foreign policy of the United States.
In effecting this policy, the President shall
make every, reasonable effort to secure the
removal or reduction of such restrictions,
policies, or actions through international
cooperation and agreement before resorting
to the imposition oftontrols on exports from
the United States. No action taken in fulfill-
ment of the policy set forth in this para-
graph shall apply to the export of medicine
or medical supplies.
SEC. 3. The Congress makes the following
declarations:
(1) It is the policy of the United States to
minimize uncertainties in export control
policy and to encourage trade with all coun-
tries with which we have diplomatic or
trading relations, except those countries with
which such trade has been determined by the
President to be against the national interest.
(2) It is the policy of the United States to
restrict the ability to export only after full
consideration of the impact on the economy
of the United States and only to the extent
necessary-
(A) to prevent the export of goods and
technology which woillit make a significant
contribution to the military potential of any
other nation or nations which would prove
detrimental to the national. security of the
United States:
(B) to further significantly the foreign
policy of the United States or to fulfill its
declared international obligations; and
(C) to protect the domestic economy from
the excessive drain of scarce materials and to
reduce the serious inflationary impact of
foreign demand.
(3) It is the policy of the United States
(A) to apply any necessary controls to the
(8) It is the policy of the United States to
use exhort controls to encourage other coun-
tries to take immediate steps to prevent the
use of their territories or resources to aid,
encourage, or give sanctuary to those persons
involved in directing, supporting, or partici-
pating in acts of international terrorism.
To achieve this objective, the President shall
make every reasonable effort to secure the
removal or reduction of such assistance to
international terrorists through interna-
tional cooperation and agreement before re-
sorting to the imposition of export. controls.
(9) It is the policy of the United States to
cooperate with other nations with which the
United States has defense treaty commit-
ments in restricting the export of goods and
technology which would make a significant
contribution to the military potential of any
country or combination of countries which
would prove detrimental to the security of
the United States or to the security of those
countries with which the United States has
defense treaty commitments.
AUTBORrrY
SEC. 4. (a) (1) To the extent necessary to
carry out the policies set forth in section 3
of this Act, the President, by rule or regu-
lation, may prohibit or curtail the export of
any goods or technology, or for the purpose
09723
of section 5 information, subject to the
jurisdiction of the United States or exported
by any person subject to the jurisdiction of
the United States. To the extent necessary to
achieve effective enforcement of this Act,
these rules and regulations may apply to the
financing, transporting, and other servicing
of exports and the participation therein by
any person. In curtailing exports to carry
out the policy set forth in section 3(2) (C)
of this Act, the President is authorized and
directed to allocate a portion of export li-
censes on the basis of factors other than a
prior history of exportation.
(2) (A) In administering export controls
for national security purposes as prescribed
in section 3(2) (A) of this Act, United States
policy toward individual countries shall not
be determined exclusively on the basis of a
country's Communist or non-Communist
status but shall take into account such
factors as the country's present and potential
relationship to the United States, Its present
and potential relationship to the United
States, its present and potential relationship
to countries friendly or hostile to the United
States, its ability and willingness to control
retransfers of United States exports in ac-
cordance with United States policy, and such
other factors as the President may deem ap-
propriate. The President shall review not
less frequently than every three years in the
case of controls maintained cooperatively
with other nations, and annually in the case
of all other controls, United States policy to-
ward individual countries to determine
whether such policy is appropriate in light
of the factors specified in the preceding
sentence.
(B) Rules and regulations under this sub-
section to carry out the policy set forth in
section 3(2) (A) of this Act may provide for
denial of any request or application for au-
thority to export goods or technology from
the United States, its territories and pos-
sessions, which would make a significant
contribution to the military potential of
any nation or combination of nations theat-
ening the national security of the United
States if the President determines that their
export could prove detrimental to the na-
tional security of the United States. In ad-
ministering export controls for national se-
curity purposes as prescribed in section 3
(2) (A) of this Act, priority shall be given to
preventing the effective transfer to countries
to which exports are controlled for national
security purposes of goods and technology
critical to the design, development, produc-
tion, or use of military systems which would
make a significant contribution to the mili-
tary potential of any nation or nations which
could prove detrimental to the national se-
curity of the United States. The Secretary
of Commerce, in consultation with the Sec-
retary of Defense, shall review and revise not
less frequently than every three years in the
case of controls maintained cooperatively
with other nations, and annually in the case
of all other controls, export controls main-
tained for national security purposes pur-
suant to this Act for the purpose of insuring
that such controls are limited, to the maxi-
mum extent possible consistent with the
purposes of this Act, to such militarily cri-
tical goods and technologies and the mech-
anisms through which they may be ? effec-
tively transferred.
(C) Export controls maintained for for-
eign policy purposes shall expire on Decem-
ber 31, 1979, or one year after imposition,
whichever is later, unless extended by the
President in accordance with this subpara-
graph and subparagraph (D). Any such ex-
tension and any subsequent extension shall
not be for a period of more than one year.
When imposing, increasing, or extending ex-
port controls for foreign policy purposes
pursuant to the authority provided by this
Act, the President shall consider-
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519724 CONGRESSIONAL RECORD -SENATE
(1) alternative means to further the for-
eign policy purposes in question;
(i1) the likelihood that foreign competitors
will join the United States in effectively
controlling such exports;
(1ii) the probability that such controls
will achieve the intended foreign policy pur-
pose;
(iv) the effect of such controls on United
States exports, employment, and production,
and on the international reputation of the
United States as a supplier of goods and
technology;
(v) the reaction of other countries to the
imposition or enlargement of such export
controls by the United States; and
(vi) the foreign policy consequences of
not imposing controls.
(D) Whenever the President imposes, in-
creases, or extends export controls for for-
eign policy purposes pursuant to authority
provided by this Act, he shall inform the
Congress of his action within thirty days
and, to the extent consistent with -the na-
tional interest, make public a report speci-
fying his conclusions with respect to each
of the matters considered as provided in
subparagraph (C) of this paragraph and in-
dicating how such export controls will fur-
ther significantly the foreign policy of the
United States or fulfill Its declared inter-
national obligations.
(E) The President shall not Impose ex-
port controls for foreign policy or national
security purposes on the export from the
United States of goods.or technology which
he determines are available without restric-
tion from sources outside the United States
In significant quantities and comparable in
quality to those produced in the United
States, unless the President determines that
adequate evidence has been presented to
him demonstrating that the absence of such
controls would prove detrimental to the
foreign policy or national security of the
United States. Where, In accordance with
this paragraph, export controls are imposed
for foreign policy or national security pur-
poses notwithstanding foreign availability.
the President shall take steps to initiate ne-
gotiations with the governments of the ap-
propriate foreign countries for the purpose
of eliminating such availability.
(b) (1) Except as otherwise provided in this
Act, the Secretary -of Commerce shall reor-
ganize the Department, of Commerce as nec-
essary to effectuate the policies set forth in
this Act. The Secretary of Commerce shall
prepare and maintain a list of goods and
technology the export of which from the
United States, its territories and possessions,
is prohibited or regulated pursuant to this
Act. The Secretary shall review, such list not
less frequently than every three years In the
case of controls maintained cooperatively
with other nations, and annually in the case
of all other controls, in order to make
promptly such changes and revisions as may
be necessary or desirable in furtherance of
the policies set forth in this Act. The Secre-
tary shall include in each review an assess-
ment of the availability from sources outside
the United States, its territories and posses-
sions, of goods and technology in significant
quantities and comparable in quality to
those items Included on such list. In order
to further effectuate the policies set forth
in this Act, the Secretary shall establish
within the Office of Export Administration
a capability for monitoring and gathering In-
formation on the foreign availability of-goods
and technology subject to export control. '
(2) The Secretary of Commerce shall keep
the public fully apprised of changes in export
control policy and procedures instituted in
conformity with this Act with a view to en-
couraging trade. The Secretary shall meet
regularly with representatives of the business
sector in order to obtain their views on ex-
port control policy ? and the foreign avail-
ability of goods and technology.
(c) (1) (A) To effectuate the policies set
forth in this Act, the Secretary of Commerce
shall establish at least the following three
types of licenses in addition to such other
types as the Secretary may deem appropriate:
(I) A validated license.
(ii) A qualified general license.
(iii) A general license.
(B) As used in this subsection-
(s) a "validated license" is a license au-
thorizing the export of goods or technology
pursuant to an application by an exporter in
accordance with rules and regulations is-
sued pursuant to this Act. A validated li-
cense maybe required for the export of goods
and technology subject to multilateral con-
trols in which the United States participates
or as determined pursuant to paragraph (2)
(ii) a "qualified general license" is a li-
cense authorizing the export to any destina-
tion of goods or technology, or a class of
goods or technology, subject to the condi-
tions contained in rules and regulations is-
sued pursuant to this Act, including condi-
tions pertaining to approval of the particu-
lar consignee and end-use of the goods or
technology. The goods and technology sub-
ject to control by qualified general license
shall be determined pursuant to paragraph
(2) of this subsection; and
(iii) a "general license" is a license au-
thorizing the export of a class of goods or
technology without specific approval if the
export is effected in accordance with the
conditions contained in rules and regula-
tions Issued pursuant to this Act.
(2) To effectuate the policies set forth in
section 3 of this Act, it is the intent of Con -
gress that the use of validated licenses be
limited to the greatest extent possible to the
control of the export of goods and technol-
ogy which are subject to multilateral con-
trols in which the United States participates.
To the extent that the President determines
that the policies set forth in section 3 of
this Act require the control of the export
of other goods and technology, or more
stringent controls than the multilateral con-
trols, he will report to the Congress not,
later than six months after the.date of en-
actment of this Act, and thereafter in each
annual report, the reasons for the need to
impose, or to continue to impose, such con-
trols. It is further the intent of Congress
that export controls which exceed the multi-
lateral controls shall be effected to the
greatest extent possible consistent with the
purposes of this Act by means of qualified
general licenses.
(3) Not later than sixty days after' the
date of enactment of this Act, the Secretary
of Commerce shall establish procedures for
the approval of goods and technology that
may be exported pursuant to a qualified gen-
eral license.
(d) (1) (A) All export license applications
required under this Act shall be submitted
by the applicant to the Secretary. All de-
terminations with , respect to any such
application shall be made by the Secretary,
subject to the procedures provided in this
subsection.
(B) It is the intent of Congress that a
determination with respect to any export
license application be made to the maximum
extent possible by the Secretary without re-
ferral of such application to any other Gov-
ernment agency.
(C) To the extent necessary, the Secre-
tary shall seek information and recommen-
dations from the several executive depart-
ments and independent agencies concerned
with aspects of our domestic and foreign
policies and operations having an impor-
tant bearing on exports. These departments
and agencies shall cooperate fully in render-
ing such information and recommendations.
(2) Within ten days after the date on
July 18, 1979
which any export license application is re-
ceived, the Secretary shall-
(A) send the applicant an acknowledge-
ment of the receipt of the application and
the date of the receipt;
(B) submit to the applicant a written de-
scription of the procedures required by this
subsection, the responsibilities of the Secre-
tary and of other agencies with respect to
the application, and, the rights of the ap-
plicant;
(C) return the application without ac-
tion if the application is improperly com-
pleted or if additional information is
required, with sufficient information to per-
mit the application to be properly resub-
mitted, in which case if such application
is resubmitted, it shall be treated as -a new
application for the purpose of calculating
the time periods prescribed in this subsec-
tion;
(D). determine whether it is necessary to
submit the application to any other agency
and, if such submission is determined to be
necessary, inform the applicant of the
agency or agencies to which the application
-will be referred; and
(E) determine whether it is necessary to
submit the application to a multilateral re-
view process, pursuant to a multilateral
agreement, formal or informal, to which the
United States is a party and, if so, inform.
the applicant of this requirement.
(3) In each case in which the Secretary
determines that it is not necessary to sub-
mit an application to any other agency for
its information and recommendations, a
license shall be formally issued or denied
within ninety days of the receipt of a
properly completed application, unless ad-
ditional time is required and the applicant
specifically requests an extension.
(4) In each case in which the Secretary
determines that it is necessary to submit
an application to any other agency for its
information and recommendations, the
Secretary shall, within thirty days of the
receipt of a properly completed application-
(A) submit the application together with
all necessary analysis and recommendations
of the Department of Commerce concurrent-
ly to other appropriate agencies; and
(B) if the applicant so requests, provide
the applicant with an opportunity to review
for accuracy any documentation to be sub-
mitted to such other agencies with respect
to such application for the purpose of de-
scribing the export in question in order to
determine whether such documentation ac-
curately describes the proposed export.
(5) (A) Any agency to which an application
is submitted pursuant to paragraph (4) shall
submit to the Secretary, within thirty days
after its receipt of the application, the infor-
mation or recommendations requested with
respect to such application. Except as pro-
vided in subparagraph (B), any such agency
which does not submit its recommendations
within the time period prescribed in the
preceding sentence shall be deemed by the
Secretary to have' no objection to the ap-
proval of such application.
(B) If the head or acting head of any such
agency notifies the Secretary before the ex-
piration of the time period provided in sub-
paragraph (A) for submission of its recom-
mendations that more time is required for
review by such agency, such agency shall
have an additional thirty-day period to sub-
mit its recommendations to the Secretary. If
such agency does not so submit its recom-
mendations within the time period prescribed
by the preceding sentence, it shall be deemed
by the Secretary to have no objection to the
approval of such application.
(6) (A) Within ninety days after receipt of
other agency recommendations, as provided
for in paragraph (5), the Secretary shall
formally issue or deny a license, unless addi-
tional time is required and the' applicant
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specifically requests an extension. In decid-
Ing whether to issue or deny a license, the
Secretary shall take into account any rec-
ommendation of an agency advising on the
application in question. In cases where the
Secretary receives conflicting recommenda-
tions, the Secretary shall, within the ninety
days provided for in this subsection, take
such action as may be necessary to resolve
such conflicting recommendations.
(B) In cases where the Secretary receives
questions or negative considerations or rec-
ommendations from other agencies advising
on an application, the Secretary shall, to the
maximum extent consistent with the na-
tional security or foreign policy of the United
States, inform the applicant of the specific
questions raised and any negative considera-
tions or recommendations made by an
agency, and shall accord the applicant an
opportunity, before the final determination
with respect to the application is made, to
respond in writing to such questions, con-
siderations, or recommendations.
(C) In cases where the Secretary has deter-
mined that an application should be denied.
at the time of the formal denial, the appli-
cant shall be Informed, to the maximum ex-
tent consistent with the national security or
foreign policy of the United States, of the
specific reasons for such denial.
(7) (A) Notwithstanding any other provi-
sion of this subsection, the Secretary of De-
fense is authorized to review any proposed
export of any goods or technology to any
country to which exports are controlled for
national security purposes and, whenever he
determines that the export of such goods or
technology will make a significant contribu-
tion, which would prove detrimental to the
national securttyof the United States, to the
military potential of any such country, to
recommend to the President that such ex-
port be disapproved,
(B) Notwithstanding any other provision
of law, the Secretary of Defense shall deter-
mine, in consultation with the Secretary, and
confirm in writing the types and categories
of transactions-which should be reveived by
him in order to make a determination re-
ferred to in subparagraph (A). Whenever a li-
cense or other authority is requested for the
export to any country to which exports are
controlled for national security purposes of
goods or technology within any such type or
category, the Secretary shall notify the Sec-
retary of Defense of such request, and the
Secretary may not issue any license or other
authority pursuant to such request before
the expiration of the period within which the
President may disapprove such export. The
Secretary of Defense shall carefully consider
all notifications submitted to him pursuant
to this subparagraph and, not later than
thirty days after notification of the request,
shall-
(I) recommend to the President that he
disapprove any request for the export of any
goods or technology to any such country if
he determines that the export of such goods
or technology will make a significant con-
tribution, which would prove detrimental to
the national security of the United States.
to the military potential of such country or
any other country;
(11) notify the Secretary that he would
rerommend approval subject to specified
conditions; or
(111) recommend to the Secretary that the
export of goods or technology be approved.
If the President notifies the Secretary, within
thirty days after receiving a recommenda-
ble in accordance with the time periods and
procedures otherwise set forth In this sub-
section.
(8) In any case in which an application,
which has been finally approved under para-
graph (4), (7), or (8) of this subsection, is
required to be submitted to a multilateral
review process, pursuant to a multilateral
agreement, formal or informal, to which the
United States is a party, the license shall
not be issued as prescribed in such para-
graphs, but the Secretary shall notify the
applicant of the approval (and the date of
such approval) of the application by the
Secretary subject to such multilateral re-
view. The license shall be issued upon
approval of the application under such
multilateral review.
(9) The Secretary and any agency to
which any application is referred under this
subsection shall keep accurate records with
respect to all applications considered by the
Secretary or by any such agency.
(e) (1) To effectuate the policy set forth
in section 3(2) (C) of this Act, the Secretary
of Commerce shall monitor exports, and
contracts for exports, of any goods (other
than a commodity which is subject to the
reporting requirements of section 812 of the
Agricultural Act of 1970) when the volume
of such exports in relation to domestic sup-
ply contributes, or may contribute, to an
Increase in domestic prices or a domestic
shortage, and such price increase or short-
age has, or may have, a serious adverse
impact on the economy, any sector thereof,
or any industry or substantial segment
thereof. Such monitoring shall commence
at a time adequate to insure that data will
be available which is sufficient to permit
achievement of the policies of this Act, and
shall include the gathering of data concern-
ing the volume of exports indicated under
all contracts providing for the export of
such goods following the date of the filing
of the petition under section 7(a) (1). In-
formation which the Secretary requires to
be furnished in effecting such monitoring
shall be confidential, except as provided in
paragraph (2) of, this subsection and in the
last two sentences of section 10(c) of this
Act.
(2) The results of such monitoring shall,
to the extent practicable, be aggregated and
included in weekly reports setting forth,
with respect to each item monitored, actual
and anticipated exports, the destination by
country,, and the domestic and worldwide
price, supply, and demand. Such reports may
be made monthly if the Secretary deter-
mines that there is insufficient information
to justify weekly reports.
(f) In imposing export controls to effec-
tuate the policy stated in section 3(2) (C)
of this Act. the President's authority shall
include but not be limited to, the impo-
sition of export license fees.
(g) (1) Notwithstanding any other pro-
vision of this Act and notwithstanding sub-
section (u) of section 28 of the Mineral
Leasing Act of. 1920, as amended (30 U.S.C.
185), no domestically produced crude oil
transported by pipeline over right-of-way
granted pursuant to the requirements of
section 203 of the Trans-Alaska Pipeline Au-
thorization Act (43 U.S.C. 1653) (except any
such crude oil which (A) is exported, for the
purpose of effectuating an exchange in which
the crude 'oil Is exported to an adjacent
foreign state to be refined and consumed
therein, in exchange for the same quantity
of crude oil being exported from that state
to the United States; such exchange must
Lion from the Secretary of Defense, that he result through convenience or increased ef-
disapproves such export, no license or other ficlency of transportation in lower prices for
authority may be issued for the export of-consumers of petroleum products in the
such goods or technology to such country. United States as described in paragraph (2)
(C) The Secretary shall approve or disap- (A) (ii) of this subsection, or (B) is tem-
prove a license application, and issue or deny porarily exported for convenience or in-
a license, in accordance with the provisions creased efficiency of transportation across
of this paragraph, and, to the extent applies- parts of an adjacent foreign state and re-
59725
enters the United States) may be exported
from the United States, its territories and
possessions, unless the requirements of para-
graph (2) of this subsection are met.
(2) Crude oil subject to the prohibition
contained in paragraph (1) may be exported
only if-
(A), the President makes and publishes an
express finding 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 trans-
ported to and sold within the United States;
(ii) will, within three months following
the initiation of such exports or exchanges,
result in (a) acquisition costs to the refiners
being lower than the acquisition costs such
refiners would have to pay for the domes-
tically produced crude oil in ,the absence of
such an export of exchange and (b) that not
less than 75 per centum of the savings shall
be reflected in reduced wholesale and retail
prices of products refined from such im-
ported crude oil;
(iii) will be made only pursuant to con-
tract which may be terminted 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 finding to
the Congress and the congress within sixty
days thereafter passes a concurrent resolu-
tion of approval.
(3) Notwithstanding the foregoing provi-
sions of this subsection or any other provi-
sion of law including subsection (u) of sec-
tion 28 of the Mineral Leasing Act of 1920,
the President may export oil otherwise sub-
ject to this subsection to any foreign nation
with whom the United States has entered
into a bilateral international oil supply
agreement prior to June 25, 1979, or to any
foreign nation with whom the United States
has entered into a multilateral supply ar-
rangement pursuant to section 251 (d) of the
Energy Policy and Conservation Act, pro-
vided, that the President promptly notifies
Congress of each such agreement.
(h) Petroleum products refined in United
States Foreign Trade Zones, or in the United
States, Territory of Guam, from foreign
crude oil shall be excluded from any quan-
titative restrictions Imposed pursuant to sec-
tion 3(2) (C) of this Act, except that, if the
Secretary of Commerce finds that a product
is in short supply, the Secretary of Com-
merce may issue such rules and regulations
as may be necessary to limit exports.
(1) (1) The authority conferred by this
section shall not be exercised with respect
to any agricultural commodity, including
fats and oils or animal hides or skins, with-
out the approval of the Secretary of Agri-
culture. The Secretary of Agriculture shall
not approve the exercise of such authority
with respect to any such commodity during
any period for which the supply of such
commodity is determined by him to be in
excess of the requirements of the domestic
economy, except to the extent the President
determines that such exercise of authority
is required to effectuate the policies set forth
in sections 3(2) (A) or (B) of this Act. The
Secretary of Agriculture shall not approve the
exercise of such authority with respect to
any such commodity unless he has (I) given
full consideration to the alternative of using
the Commodity Credit Corporation to pur-
chase such commodity and arrange sales to
foreign governments in accordance with the
provisions of the commodity Credit Cor-
poration Charter Act so as to stabilize mar-
kets and maximize returns to agricultural
producers, and (ii) determined that export
controls are preferable to such use of the au-
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CONGRESSIONAL RECORD -SENATE July 18, 1979
thority granted by the Commodity Credit
Corporation Charter Act.
(2) Upon approval of the Secretary of
Commerce, in consultation with the Secre-
tary of Agriculture, agricultural commodities
purchased by or for use in a foreign country
may remain in the United States for export
at a later date free from any quantitative
limitations on export which may be imposed
pursuant to section 3(2) (C) of this Act sub-
sequent to such approval. The Secretary of
Commerce may not grant approval hereun-
der unless he receives adequate assurance
and, in conjunction with the Secretary of
Agriculture, finds (A) that such commodities
will eventually be exported, (B) that neither
the sale nor export thereof will result in an
excessive drain of scarce materials and have
a serious domestic inflationary impact, (C)
that storage of such commodities in the
United States 'will not unduly limit the
space available for storage of domestically
owned commodities, and (D) that the pur-
pose of such storage is to establish a reserve
of such commodities for later use, not includ-
ing resale to or use by another country. The
Secretary of Commerce is authorized to issue
such rules and regulations as may be nec-
essary to implement this paragraph.
(j) Nothing in this Act or the rules or
regulations thereunder shall be construed
to require authority or permission to export,
except where required by the President to
effect the policies set forth in section 3 of
this Act.
(k) The President may delegate the power,
authority, and discretion conferred upon
him by this Act to such departments,
agencies, or officials of the Government as
he may deem appropriate, except that no
authority under this Act may be delegated
to. or exercised by, any official of any depart-
ment or agency the head of which is not
appointed by and with the advice and con-
sent of the Senate.
(1) (1) Any United States firm, enterprise,
or other nongovernmental entity which, for
commercial purposes, enters into an agree-
ment with an agency of a government in
another country to which exports are re-
stricted for national security 'purposes,
which agreement cites an intergovernmental
agreement calling for the encouragement of
technical cooperation and is intended to re-
sult in the export from the United States to
the other party of unpublished technical
data of United States origin, shall report such
agreement to the Secretary of Commerce.
(2) The provisions of this subsection shall
not apply to colleges, universities, or other
educational institutions.
(3) The Secretary of Commerce is author-
ized to issue such rules and regulations as
are necessary to implement the provisions
of this subsection.
(m) The Secretary of State, in consulta-
tion with the Secretary of Defense, the Sec-
retary of Commerce, and the heads of other
appropriate departments and agencies, shall
be responsible for negotiations with other
countries regarding their cooperation in re-
stricting the export of goods and technologies
whose export should be restricted pursuant
to section 3(9) of this Act, as authorized
under, section 4(a) (1) of this Act, including
negotiations on the basis of approved ad-
ministration positions as to which goods
and technologies should be subject to multi-
laterally agreed export restrictions and what
conditions should apply for exceptions from
those restrictions.
(n) The President shall enter into negotia-
tions with the governments participating in
the group known as the Coordinating Com-
mittee (hereinafter in this subsection re-
ferred to as the "Committee") with a view
toward reaching-
(A) an agreement to publish the list of
items controlled for export by agreement of
the Committee, together with all notes, un-
derstandings, and other aspects of such list,
and all changes thereto;
(B) an agreement to hold periodic meet-
ings of such governments with high-level
representation from such governments, for
the purpose of providing guidance on export
control policy issues to the Committee;
(C) an agreement to modify the scope of
the export controls imposed by agreement
of the Committee to a level accepted and
enforced by all governments participating in
the Committee; and
(D) an agreement on more effective pro-
cedures for enforcing the export controls
agreed to pursuant to subparagraph (C).
(o) In order to ensure that requirements
for validated licenses and qualified general
licenses are periodically removed as goods
or technology subject to such requirements
become obsolete with respect to the na-
tional security of the United States, regula-
tions issued by the Secretary may, where
appropriate, provide for annual increases in
the, performance levels of goods or technol-
ogy subject to any such licensing require-
ment. Any such goods or technology which
no longer meet the performance levels es-
tablished by the latest such increase shall
be removed from the list established pur-
suant to subsection (b) (1) of this section
unless, under such exceptions and under
such procedures as the Secretary shall pre-
scribe, any other Government agency ob-
jects to such removal and the . Secretary
determines, on the basis of such objection,
that the goods or technology shall not be
removed from the list. Consideration shall
also be given by the Secretary, where appro-
priate, to removing site visitation require-
ments for goods and technology which are.
removed from the above-mentioned list un-
less objections described in this subsection
are raised.
(p) (1) Notwithstanding any other provi-
sion of this Act, no horse may be exported
by sea from the United States, its territories
and possessions, unless such horse is part
of a consignment of horse with respect to
which a waiver has been granted under para-
graph (2) of this subsection.
(2) The Secretary of Commerce, in con-
sultation with the Secretary of Agriculture,
may issue rules and regulations providing
for the granting of waivers permitting the
export by sea of a specified consignment of
horses, if the Secretary of Commerce, in con-
sultation with the Secretary of Agriculture,
determines that no horse in that consign-
ment is being exported for purposes of
slaughter.
FOREIGN SoYCOTTs
SEC. 5. (a) (1) For the purpose of imple-
menting the policies set forth in section
3(5) (A) and (B), the President shall issue
rules and regulations prohibiting any United
States person, with respect to his activities
in the interstate or foreign commerce of the
United States, from taking or knowingly
agreeing to take any of the following actions
with intent to comply with, further, or sup-
port any boycott fostered or imposed by a
foreign country against a country which is
friendly to the United States and which is
not itself the object of any form of boycott
pursuant to United States law or regulation:
(A) Refusing, or requiring any other per-
son to refuse, to do business with or in the
boycotted country, with any business con.
cern organized under the laws of the boy-
cotted country, with any national or resident
of the boycotted country, or with any other
person, pursuant to an agreement with, a
requirement of, or a request from or on
behalf of the boycotting country. The mere
absence of a business relationship with or
in the boycotted country with any business
concern organized under the laws of the
boycotted country, with any national or
resident of the boycotted country, or with
any other person, does not indicate the exist-
ence of the intent required to establish a
violation of rules and regulations issued to
carry out this subparagraph.
(B) Refusing, or requiring any other per-
son to refuse, to employ or otherwise ? dis-
criminating against any United States per-
son on the basis of race, religion, sex, or
national origin of that person or of any
owner, officer, director, or employee of such
person.
(C) Furnishing information with respect
to the race, religion, sex, or national origin
of any United States person or of any owner,
officer, director, or employee of such person.
(D) Furnishing information about
whether any person has, has had, or pro-
poses to have any business relationship (in-
cluding a relationship by way of sale, pur-
chase, legal or commercial representation,
shipping or other transport, insurance, in-
vestment, or supply) with or in the boycotted
country, with any business concern organized
under the laws of the boycotted country,.
with any national or resident of the boy-
cotted country, or with any other person
which is known or believed to be restricted
from having any business relationship with
or in the boycotting country. Nothing in
this paragraph shall prohibit the furnishing
of normal business information in a com-
mercial context as defined by the Secretary
of Commerce.
(E) Furnishing information about whether
any person is a member of, has made con-
tributions to, or is otherwise associated
with or involved in the activities of any
charitable or fraternal organization which
supports the boycotted country.
(F) Paying, honoring, confirming, or
otherwise implementing a letter of . credit
which contains any condition or requirement
compliance with which is prohibited by rules
and regulations issued pursuant to this para-
graph, and no United States person shall, as
a result of the application of this paragraph,
be obligated to pay or otherwise honor or
implement such letter of credit.
(2) Rules and regulations issued pursuant
to paragraph (1) shall provide exceptions
for=
(A) complying or agreeing to comply with
requirements (i) prohibiting the import of
goods or services from the boycotted country
or goods produced or services provided by any
business concern organized under the laws
of the boycotted country or by nationals or
residents of the boycotted country, or (ii)
prohibiting the shipment of goods to the boy- -
cotting country on a carrier of the boycotted
country, or by a route other than that pre-
scribed by the boycotting country or the re-
cipient of the shipment;
(B) complying or agreeing to comply with
import and shipping document requirements
with respect to the country of -origin, the
name of the carrier and route of shipment,
the name of the supplier of the shipment or
the name of the provider of other services, ex-
cept that no information knowingly fur-
nished or conveyed in response to such re-
quirements may be stated in negative, black-
listing. or similar exclusionary terms on or
after June 22, 1978, other than with respect
to carriers or route of shipment as may be
permitted by such rules and regulations in
order to comply with precautionary require-
ments protecting against war risks and con-
fiscation;
(C) complying or agreeing to comply in the
normal course of business with the unilateral
and specific selection by a boycotting coun-
try or national or resident thereof, of car-
riers, insurers, suppliers of services to be per-
formed within the boycoting country or spe-
cific goods which, in the normal course of
business, are identifiable by source when im-
ported into the boycotting country;
(D) complying or agreeing to comply with
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export requirements of the boycotting coun-
try relating to shipments or transshipments
of exports to the boycotted country, to any
business concern of or organized under the
laws of the boycotted country, or to any na-
tional or resident of the boycotted country;
(E) compliance by an individual or agree-
ment by an individual to comply with the
immigration or passport requirements of any
country with respect to such individual or
any member of such Individual's family or
with requests for information regardng re-
quirements of employment of such individual
within the boycotting country; and
(F) compliance by a United States person
resident in a foreign country or agreement by
such person to comply with the laws of that
country with respect to his activities exclu-
sively therein, and such rules and regulations
may contain exceptions for such resident
complying with the laws or regulations of
that foreign country governing imports into
such country of trademarked, trade named,
or similarly specifically identifiable products,
or components of products for his own use,
including the performance of contractual
services within that country, as may be de-
fined by such rules and regulations.
(3) Rules and regulations issued pursuant
to paragraphs (2) (C) and (2) (F) shall not
provide exceptions from paragraphs (1) (B)
and (1) (C).
(4) Nothing in this subsection may be con-
strued to supersede or limit the operation of
the antitrust or civil rights laws of the
United States.
(5) Rules and regulations pursuant to this
subsection shall be issued not later than
ninety days after the date of enactment of
this section and shall be issued in final form
and become effective not later than one hun-
dred and twenty days after they are first
issued, except that (A) rules and regulations
prohibiting negative certification may take
efleot not later than one year after the date
of enactment of this section, and (B) a grace
period shall be provided for the application
of the rules and regulations Issued pursuant
to this subsection to actions taken pursuant
to a written contract or other agreement en-
tered into on or before May 16, 1977. Such
grace period shall end on December 31, 1978,
except that the Secretary of Commerce may
extend the grace period for not to exceed one
additional year in any case in which the Sec-
retary finds that good faith efforts are being
made to renegotiate the contract or agree-
ment in order to eliminate the provisions
which are inconsistent with the rules and
regulations issued pursuant to paragraph (1).
(6) This Act shall apply to any transac-
tion or activity undertaken, by or through a
United States or other person, with intent
to evade the provisions of this Act as imple-
mented by the rules and regulations issued
pursuant to this subsection, and such rules
and regulations shall expressly provide that
the exceptions set forth in paragraph (2)
shall not permit activities or agreements (ex-
pressed or implied by a course of conduct, In-
cluding a pattern of responses) otherwise
prohibited, which are not within the intent
of such exceptions.
(b) (1) In addition to the rules and reg-
ulations issued pursuant to subsection (a)
of this section, rules and regulations issued
.'under section 4(a) of this Act shall imple-
ment the policies set forth In section 3(5).
(2) Such rules and regulations shall re-
quire that any United States person receiving
p request for the furnishing of information,
the entering into or implementing of agree-
ments, or the taking of any other action re-
ferred to in section 3(5) shall report that
fact to the Secretary of Commerce, together
with such other information concerning such
request as the Secretary may require for such
action as he may deem appropriate for carry-
ing out the policies of that section. Such
person shall also report to the Secretary of
Commerce whether he intends to comply
and whether he has complied with such re-
quest. Any report filed pursuant to this para-
graph after the date of enactment of this
section shall be made available promptly for
public inspection and copying, except that
information regarding the quantity, descrip-
tion, and value of any goods or technology
to which such report relates may be kept con-
fidential if the Secretary determines that dis-
closure thereof would place the United States
person involved at a competitive disadvan-
tage. The Secretary of Commerce shall peri-
odically transmit summaries of the informs--
tion contained In such reports to the Secre-
tary of State for such action as the Secre-
tary of State, in consultation with the Secre-
tary of Commerce, may deem appropriate for
carrying out the policies set forth in section
3(5) of this Act.
(c) The provisions of this section and the
rules and regulations issued pursuant there-
to shall preempt any law, rule, or regulation
of any of the several States or the District of
Columbia, and any of the territories or pos-
sessions of the United States, or of any gov-
ernmental sudivision thereof, which law, rule,
or regulation pertains to participation In,
compliance with, Implementation of, or the
furnishing of information regarding restric-
tive trade practices or boycotts fostered or
imposed by foreign countries against other
countries.
PROCEDURES TeOR HARDSHD' RELEEF FROM EXPORT
CONTROLS \
SEC. 8 (a) Any person who, in his domestic
manufacturing process or other domestic
business operation. utilizes a product pro-
duced abroad in whole or in part from a
commodity historically obtained from the
United States but which has been made sub-
ject to export controls, or any person who
historically has exported such a commodity,
may transmit a petition of hardship to the
Secretary of Commerce requesting an exemp-
tion from such controls in order to alleviate
any unique hardship resulting from the im-
position of such controls. A petition under
this section shall be in such form as the Sec-
retary of Commerce shall prescribe and shall
contain Information demonstrating the need
for the relief requested.
(b) Not later than thirty days after re-
ceipt of any petition under subsection (a),
the Secretary of Commerce shall transmit
a written decision to the petitioner granting
or denying the requested relief. Such decision
shall contain a statement setting forth the
Secretary's basis for the grant or denial. Any_
exemption granted may be subject. to such
conditions as the Secretary deems appropri-
ate.
(c) For purposes of this section, the Sec-
retary's decision with respect to the. grant
or denial of relief from unique hardship re-
sulting directly or indirectly from the impo-
sition of controls shall reflect the Secretary's
consideration of such factors as-
(1) whether denial would cause a unique
hardship to the petitioner which can be al-
leviated only by granting an exception to
the applicable regulations. In determining
whether relief shall be granted, the Secretary
will take into account:
(A) ownership of material for which there
is no practicable domestic market by virtue
of the location or nature of the material;
(B) potential serious financial loss to the
applicant if not granted an exception;
(C) Inability to obtain, except through
Import, an item essential for domestic use
which is produced abroad from the com-
modly under control;
(D) the extent to which denial would con-
flict, to the particular detriment of the ap-
plicant, with other national policies includ-
ing those reflected in any,international agree-
ment to which the United States is a party;
(E) possible adverse effects on the econ-
omy (including unemployment) in any local-
ity or region of the United States; and
(F) other relevant factors, including the
applicant's lack of an exporting history dur-
ing any base period that may be established
with respect to export quotas for the par-
ticular commodity; and
(2) the effect a finding in favor of the
applicant would have on attainment of the
basic objectives of the short supply control
program.
In all cases, the desire to sell at higher prices
and thereby obtain greater profits will not
be considered as evidence of a unique hard-
ship, nor will circumstances where the hard-
ship is due to imprundent sets or failure to
act on the part of the petitioner.
PETITIONS FOR MONITORING OR CONTROLS
SEC. 7. (a) (1) Any entity, including a
trade association, firm, or certified or rec-
ognized union or group of workers, which
is representative of an industry or a substan-
tial segment of an industry which processes
any material or commodity may transmit a
written petition to the Secretary of Com-
merce requesting the imposition of export
controls, or the monitoring of exports, or
both, with respect to such material or com-
modity.
(2) Each petition shall be in such form
as the Secretary of Commerce shall prescribe
and shall'contain information in support of
the action requested.
(b) Within fifteen days of receipt of any
petition described In subsection (a), the
Secretary of Commerce shall cause to be
published a notice in the Federal Register.
The notice shall include (1) the name of
the material or commodity which is the
subject of the petition, (2) the Schedule B
number of the material or commodity as sat
forth in the Statistical Classification of Do-
mestic and Foreign Commodities Exported
from the United States. (3) whether the peti-
tioners is requested that control or monitor-
ing, or both, be imposed with respect to the
exportation of such material or commodity,
and (4) provide that Interested persons shall
have a period of thirty days commencing
with the date of publication of such notice
to submit to the Secretary of Commerce
written data, views, or arguments, with or
without opportunity for oral presentation.
At the request of any person, the Secretary
shall conduct public hearings with respect to
the subject of the petition, in which event
the thirty-day period shall be extended to
forty-five days.
(c) Within thirty days after the end of the
thirty-day or forty-five-day period described
in subsection (b), the Secretary of Com-
merce shall-
(1) determine whether to impose monitor-
ing or controls or both on the exportation of
such material or commodity; or
(2) publish in the Federal Register a de-
tailed statement of the reasons for such de-
termination.
. (d) Within fifteen days following a de-
cision under subsection (c) to impose mon-
itoring or controls on the exportation of a
material or commodity, the Secretary shall
publish in the Federal Register proposed reg-
ulations with respect to such monitoring or
controls. Within thirty days following the
publication of such notice, and after consid-
ering any public comments, the Secretary
shall publish and implement final regula.
tions.
(e) The procedures and time limits set
forth in this section shall take precedence
over any review undertaken at the Initiative
of the Secretary.
(f) The Secretary shall have the authority
to impose monitoring or controls on a tempo-
rary basis during the period following the
filing of a petition under subsection (a) (1)
and his determination under subsection (c)
if he deems such action to be necessary to
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CONGRESSIONAL RECORD - S]ENATIE July 18, 1979
effectuate the policy set forth in section 3(2)
(C) of this Act.
(g) The authority under this section shall
not be construed to affect the authority of
the Secretary of Commerce under any other
provision of this Act.
CONSULTATION AND STANDARDS
SEC. 8. (a) In determining what shall be
controlled or monitored under this Act, and
in determining the extent to which exports
shall be limited, any department, agency, or
official making these determinations shall
seek information and advice from the several
executive departments and independent
agencies concerned with aspects of our do-
mestic and foreign policies and operations
having an important bearing on exports.
Such departments and agencies shall fully
cooperate in rendering such advice and in-
formation. Consistent with considerations of
national security, the President shall seek
information and advice from various seg-
ments of private industry in connection with
the making of these determinations. fn ad-
dition, the Secretary of Commerce shall con-
sult with the Secretary of Energy to deter.
mine whether, in order to effectuate the
policy stated in section 3(2) (C) of this. Act,
monitoring or controls are necessary with
respect to exports of facilities, machinery, or
equipment normally and principally used, or
intended to be used, in the production, con-
version, or transportation of fuels and energy
(except nuclear energy), including but not
limited to, drilling rigs, platforms, and equip-
ment; petroleum refineries, natural gas proc-
essing, liquefaction, and gasification plants;
facilities for production of synthetic natural
gas or synthetic crude oil; oil and gas pipe-
lines, pumping stations, and associated
equipment; and vessels for transporting oil,
gas, coal, and other fuels.
(b) (1) In authorizing exports, full utiliza-
tion of private competitive trade channels
shall be encouraged insofar as practicable,
giving consideration to the interests of small
business, merchant exporters as well as pro-
ducers, and established and new exporters,
and provision shall be made for representa-
tive trade consultation to that end. In addi-
tion, there may be applied such other stand-
ards or criteria as may be deemed necessary
by the head of such department, or agency,
or official to carry out the policies of this Act.
(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 of Commerce shall include in
the notice published in the Federal Register
an invitation to all interested parties to sub-
mit written comments within fifteen days'
from the date of publication of the impact of
such restrictions and the method of licens-
ing used to implement them.
(c) (1) Upon written request by repre-
sentatives of a substantial segment of any
industry which produces goods or technology
which are subject to 'export controls or are
being considered for such controls because of
their significance to the national security of
the United States, or whenever he deems
appropriate to further the purposes of this
Act, the Secretary of Commerce shall appoint
a technical advisory committee for any
grouping of such goods or technology which
he determines is difficult to evaluate because
of questions concerning technical matters,
worldwide availability and actual utilization
of production and technology, or licensing
procedures. Each such committee shall con-
sist of representatives of United States in.
dustry and government, including the De-
partments of Commerce, Defense, and State,
and, when appropriate, other Government
departments and agencies. No person serving
on any such committee who is representative
of industry shall serve on such committee for
more than four consecutive years.
(2) It shall be the duty and function of
the technical advisory committees established
under paragraph (1) to advise and assist the
Secretary of Commerce and any other depart-
ment, agency, or official of the Government
of the United States to which the President
has delegated power, authority, and discre-
tion under section, 4(e) with respect to ac-
tions designed to carry out the policy set
forth in section 3 of this Act. Such commit-
tees, where they have expertise in such mat-
ters, shall be consulted with respect to ques-
tions involving (A) technical matters, (B)
worldwide availability and actual utilization
of production technology, (C) licensing pro-
cedures which affect the level. of export con-
trols applicable to any goods or technology,
and (D) exports subject to multilateral con-
trols in which the United States participates
including proposed revisions of any such
multilateral controls. Nothing in this sub-
section shall prevent the Secretary from con-
sulting, at any time, with any person repre-
senting industry or the general public
regardless of whether such person is a mem-
ber of a technical advisory committee. Mem-
bers of the public shall be given a reasonable
opportunity, pursuant to regulations pre-
scribed by the Secretary of Commerce, to
present evidence to such committees.
(3) Upon request of any member of any
such committee, the Secretary may, if he
determines it appropirate, reimburse such
member for travel, subsistence, and other
necessary expenses incurred by him in con-
nection with his duties as a member.
(4) Each such committee shall elect a
chairman, and shall meet at least every three
months at the call of the Chairman, unless
the Chairman determines, in consultation
with the other members of the committee,
that such a meeting is not necessary to
achieve the purposes of this Act. Each such
committee shall be terminated after a pe-
riod of two years, unless extended by the
Secretary for additional periods of two years.
The Secretary shall consult each such com-
mittee with regard to such termination or
extension of that committee.
(5) To facilitate the work of the technical
advisory committees, the Secretary of Com-
merce, in conjunction with other depart-
ments and agencies participating in the ad-
ministration of this Act, shall disclose to
each such committee adequate information,
consistent with national security and for-
eign policy, pertaining to the reasons for the
export controls which are in effect or con-
templated for the grouping of goods or tech-
nology with respect to which that committee
furnishes advice.
(6) Whenever a technical advisory com-
mittee certifies to the Secretary of Com-
merce that goods or technology are avail-
able in fact from sources outside the United
States in sufficient quantity and of comps--
rable quality so as to render United States
export controls ineffective in achieving the
purposes of this Act, and provides adequate
documentation for such certification, the
Secretary of Commerce shall investigate and
report to the technical advisory committee
on whether the Secretary concurs with the
certification. If the Secretary concurs, the
Secretary shall submit a recommendation to
the President who shall act in accordance
with section 4(a) (2) (E) of this Act,
VIOLATIONS
SEC. 9. (a) Except as provided in subsec-
tion (b) of this section, whoever knowingly
violates any provision of this Act or any
regulation, order, or license issued there-
under shall be fined not more than five times
the value of the exports involved or $50,000,
whichever is greater, or imprisoned not more
than five years, or both.
(b) Whoever willfully exports anything
contrary to any provision of this Act or any
regulation, order, or license issued there-
under, with knowledge that such exports
will be used for the benefit of any country
to which exports are restricted for national
security or foreign policy purposes, shall be
fined not more than five times the value of
the exports involved or $100,000, whichever
is greater, or imprisoned not more than ten
years, or both.
(c) (1) The head of any department or
agency exercising any functions under this
Act, or any officer or employee of such de-
partment or agency specifically designated
by the head thereof, may impose a civil
penalty not to exceed $10,000 for each viola-
tion of this Act or any regulation, order, or
license issued under this Act, either in addi-
tion to or in lieu of any other liability or
penalty which may be imposed.
(2) (A) The authority under this Act to
suspend or revoke the authority of any
United States person to export goods or tech-
nology may be used with respect to any vio-
lation of the rules and regulations issued
pursuant to section 5(a) of this Act.
(B) Any admininstrative sanction (in-
cluding any civil penalty or any suspension
or revocation of authority to export) im-
posed under this Act for a violation of the
rules and regulations issued pursuant to
section 5(a) of this Act may be imposed only
after notice and opportunity for an agency
hearing on the record in accordance with
sections 554 through 557 of title 5, United
States Code.
(C) Any charging letter or other document
initiating administrative proceedings for the
imposition of sanctions for violations of the
rules and regulations issued pursuant to sec-
tion 5(a) of this Act shall be made avail-
able for public inspection and copying.
(d) The payment of any penalty imposed
pursuant to subsection (c) may be made a
condition, for a period not exceeding one
year after the imposition of such penalty,
to the granting, restoration, or continuing
validity of any export license, permission, or
privilege granted or to be granted to the
person upon whom such penalty is imposed.
In addition, the payment of any penalty im-
posed uder subsection (c) may be deferred
or suspended in whole or in part for a period
of time no longer than any probation period
(which may exceed one year) that may be
imposed upon such person. Such a deferral
or suspension shall not operate as a bar to
the collection of the penalty in the event
that the conditions of the suspension, de-
ferral, or probation are not fulfilled.
(e) Any amount paid in satisfaction of any
penalty imposed pursuant to subsection (c)
shall be covered into the Treasury as a mis-
cellaneous receipt. The head of the depart-
ment or agency concerned may, in his dis-
cretion, refund' any such penalty, within two
years after payment, on the ground of a ma-
terial error of fact or law in the imposition.
Notwithstanding section 1346(a) of title 28,
United States Code, no action for the refund
of any such penalty may be maintained in
any court.
(f) In the event of the failure of any per-
son to pay a penalty imposed pursuant to
subsection (c), a civil action for the recovery
thereof may, in the discretion of the head of
the department or agency concerned, be
brought in the name of the United States.
In any such action, the court shall determine
de novo all issues neecssary to the establish-
ment of liability. Except as provided in this.,
subsection and in subsection (d), no such li-
ability shall be asserted, claimed, or recov-
ered upon by the United States in any way
unless it has previously been reduced to
judgment. k.
(g) Nothing in subsection (c), (d), or (f)
limits-
(1) the availability of other administrative
or judicial remedies with respect to viola-
tions of this Act, or any-regulation, order, or
license issued under this Act;
(2) the authority to compromise and settle
administrative proceedings brought with re-
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spect to violations of this Act, or any regula-
tion, order, or license issued under this Act;
or
(3) the authority to compromise, remit or
mitigate seizures and forfeitures pursuant to
section 1(b) of title VI of the Act of June 15.
1917 (22 U.S.C. 401 (b) ) .
ENFORCEMENT
SEC. 10. (a) To the extent necessary or
appropriate to the enforcement of this Act
or to the imposition of any penalty, for-
feiture, or liability arising under the Export
Control Act of 1949, the head of any de-
partment or agency exercising any function
v thereunder (and officers or employees of such
department or agency specifically designated
by the head thereof) may make such In-
vestigations and obtain such Information
from, require such reports or the keeping of
such records by, make such inspection of the
books, records,. and other writings, premises,
or property of, and take the sworn testimony
of, any person. In addition, such officers or
employees may administer oaths or affirma-
tions, and may by subpena require any person
to appear and testify or to appear and pro-
duce books, records, and other writings, or
both, and in the case of contumacy by, or
refusal to obey a subpena issued to, any such
person, the district court of the United States
for any district in which such person Is found
or resides or transacts business, upon appli-
cation, and after notice to any such person
and hearing, shall have jurisdiction to issue
an order requiring such person to appear
and give testimony or to appear and produce
books, records, and other writings, or both,
and any failure to obey such order of the
court may be punished by such court as a
contempt thereof.
(b) No person shall be excused from com-
plying with any requirements under this
section because of his privilege against self-
incrimination, but the immunity provisions
of the Compulsory Testimony Act of Febru-
ary 11, 1893 (27 Stat. 443; 49 U.S.C: 46) shall
apply with respect to any individual who
specifically claims such privilege.
(c) Except as otherwise provided by the
third sentence of section 5(b) (2) and by sec-
tion 9(c) (2) (C) of this Act, Information ob-
tained under this Act, which is deemed con-
fidential or with reference to which a
request for confidential treatment is made
by the person furnishing such information,
shall be exempt from disclosure under sec-
tion 552(b) (3) (B) of title 5, United States
Code, and such information shall not be pub-
lished or disclosed unless the Secretary of
Commerce determines that the withholding
thereof is contrary to the national interest.
Nothing in this Act shall be construed as
authorizing the withholding of information
from Congress, and all information obtained
at any time under this Act or previous Acts
regarding' the control of exports, Including
any report or license application required
under section 4(b), shall be made available
upon request to any committee or subcom-
mittee of Congress of appropriate jurisdic-
tion. No such committee or subcommittee
shall disclose any information obtained un-
der this Act or previous Acts regarding the
control of exports which is submitted on a
confidential basis unless the full committee
determines that the withholding thereof Is
contrary to the national interest.
(d) In the administration of this Act, re-
porting requirements shall be so designed as
to reduce the cost of reporting, recordkeep-
9ng, and export documentation required
under this Act to the extent feasible consis-
tent with effective enforcement and compil-
ation of useful trade statistics. Reporting,
recordkeeping, and export documentation re-
quirements shall be periodically reviewed and
revised in the light of developments in the
field of information technology.
EXEMPTION FROM CERTAIN PROVISIONS RELATING
TO ADMINISTRATIVE PROCEDURE AND JUDICIAL
REVIEW
SEC. 11. (a) Except as provided in section
9(c) (2), the functions exercised under this
Act are excluded from the operation of sec-
tions 551, 553 through 559, and 701 through
706 of title 5, United States Code.
(b) It is the intent of Congress that, to
the extent practicable, all regulations impos-
ing controls on exports under this Act be is-
sued in proposed form with meaningful op-
portunity for public comment before taking
effect. In cases where a regulation imposing
controls under this Act Is issued with im-
mediate effect, it is the intent of Congress
that meaningful opportunity for public com-
ment also be provided and that the regulation
be reissued in final form after public com-
ments have been fully considered. The Sec-
retary shall include in the annual report re=
quired by this Act a detailed accounting of
the issuance of regulations under the author-
ity of this Act, including an explanation of
each case In which regualtions were not is-
sued in accordance with the first sentence
of this subsection.
ANNUAL REPORT
SEC. 12. (a) The Secretary of Commerce
shall make an annual report to the President
and to the Congress on the implementation
of this Act.
(b) Each annual report shall include an
accounting of-
(1) actions taken by the President and the
Secretary of Commerce to effect the anti-
boycott polices set forth in section 3(5) of
this Act;
(2) organizational and procedural changes
Instituted and any reviews undertaken In
furtherance of the policies set forth in this
Ate;
(3) efforts to keep the business sector of
the Nation informed about policies and pro-
cedures adopted under this Act;
(4) any changes in the exercise of the
authorities of section 4(a) of this Act;
(5) the results of review of United States
policy toward individual countries called for
in section 4(a) (2) (A) ;
(6) the results, In as much detail as may
be Included consistent with the national
security and the need to maintain the con-
fidentiality of proprietary information, of
the actions, including reviews and revisions
of export controls maintained for national
security purposes, required by section 4(a)
(2) (B);
(7) actions taken pursuant to section
4(b) (1), Including changes made in control
lists and assessments of foreign availability;
(8) evidence demonstrating a need to im-
pose export controls for national security or
foreign policy purposes in the face of foreign
availability as set forth in section 4(a) (2)
(E);
(9) the Information contained in the re-
ports required by section 4(e) (2) of this
Act, together with an analysis of-
(A) the impact on the economy and world
trade of shortages or increased prices . for
commodities subject to monitoring under
this Act or section 812 of the Agricultural
Act of 1970;
(B) the worldwide supply of such com-
modities; and
(C) actions being taken by other nations
In response to such shortages or increased
prices:
(10) delegations of authority by the Presi-
dent as provided for under sectioxf 4(k) of
this Act;
(11) the progress of negotiations under
section 4(n) of this Act;
(12) the number and disposition of export
license applications taking more than 90
days to process pursuant to section 4(d) of
this Act;
5972
(13) consultations undertaken with tech-
nical advisory committees pursuant to sec-
tion 8(c) of this Act, the use made of advice
given, and the contribution such committees
made in carrying out the policies of this Act;
(14) violations of the provisions of this
Act and penalties imposed pursuant to this
Act; and
(15) any revisions to reporting require-
ments prescribed in section 10(d).
(c) The heads of other involved depart-
ments and agencies shall fully cooperate with
the Secretary of Commerce in providing all
information required by the Secretary of
Commerce to complete the annual reports.
DEFINITIONS
SEC. 1$. As used in this Act-
(1) the term "person" includes the singu-
lar and the plural and any individual, part-
nership, corporation, or other form of asso-
ciation, including any government or agency
thereof;
(2) the term "United States person" means
any United States resident or national (other
than an individual resident outside the
United States and employed by other than a
United States person), any domestic concern
(including any permanent domestic estab-
lishment of any foreign concern) and any
foreign subsidiary or affiliate (including any
permanent foreign establishment) of any do-
mestic concern which is controlled in fact by
such domestic concern, as determined under
regulations of the President;
(3) the term "goods" means any article,
material, supply or manufactured product,
including inspection and test equipment,
and excluding technical data; and
(4) the term "technology" means the in-
formation and know-how that can be used
to design, produce, manufacture, utilize, or
reconstruct goods, including computer soft-
ware and technical data, but not the goods
themselves.
EFFECTS ON OTHER ACTS
SEC. 14. (a) The Act of February 15, 1936
(49 Stat. 1140), relating to the licensing of
exports of tinplate scrap, is hereby super-
seded; but nothing contained in this Act
shall be construed to modify,-repeal, super-
sede, or otherwise affect the provisions of any
other laws authorizing control over exports
of any commodity.
(b) The authority granted to the President
under this Act shall be exercised in such
manner as to achieve effective coordination
with the authority exercised under section
38 of the Arms Export Control Act (22 U.S.C.
2778).
(c) On October 1, 1979, the Mutual De-
fense Assistance Control Act of 1951, as
amended (22 U.S.C. 1611-1613d), Is super-
seded.
AUTHORIZATION OF APPROPRIATIONS
SEC. 15. (a) 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 for any fiscal year com-
mencing on or after October 1, 1980, unless
previously and specifically authorized by leg-
islation.
(b) There are authorized to be appropri-
ated to the Department of Commerce $8,-
000,000 (and such additional amounts as
may be necessary for increases in salary, pay,
retirement, other employee benefits author-
ized by law, and other nondiscretionary
costs) for fiscal year 1980 to carry out the
purposes of this Act, of which $1,250,000
shall be available only for purposes of es-
tablishing and maintaining the capability
to make foreign availability assessments
called for by section 4(b) (1).
EFFECTIVE DATE
SEC. 16. (a) This Act takes effect upon
the expiration of the Export Administration
Act of 1969.
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CONGR1gIESSIIONAL RECORD - SIENATIE July 18, 1979
(b) All outstanding delegations, rules,
regulations, orders, licenses, or other forms
of administrative action under the Export
Control Act of 1949 or section 6 of the Act
of July 2, 1940 (54 Stat. 714), or the Export
Administration Act of 1969 shall, until
amended or revoked, remain in full force
and effect, the same as if promulgated under
this Act.
TERMINATION DATE
SEC. 17. The authority granted by this Act
terminates on September 30, 1983, or upon
any prior date which the President by procla-
mation may designate.
AGRICULTURE, RURAL DEVELOP-.
MENT AND RELATED AGENCIES
APPROPRIATIONS, 1980
The PRESIDING OFFICER. Under
the previous order, S. 737 will be set
aside, and the Senate will proceed to the
consideration of H.R. 4387, which will
be stated by title.
The assistant legislative clerk read as
follows :
A bill (H.R. 4387) making appropriations
for Agriculture, Rural Development, and Re-
lated Agencies programs for the fiscal year
ending September 30, 1980, and for other
purposes.
The Senate proceeded to consider the
bill, which had been reported from the
Committee on Appropriations with an
amendment in the nature of a substi-
tute.
The PRESIDING OFFICER. Who
yields time?
Mr. EAGLETON. Mr. President, I ask
unanimous consent that Andrew Jacobs,
of the Agriculture Appropriations Sub-
committee staff, be granted the privi-
lege of the floor during the considera-
tion of H.R. 4387.
The PRESIDING OFFICER. Without
objection, it is so ordered.
Mr. EAGLETON. Mr. President, after
I deliver my opening statement, I will
yield to the Senator from Oklahoma (Mr.
BELLMON). I must then leave the floor
temporarily to introduce a witness at
a confirmation hearing, and I will be
absent during Senator BELLMON'S state-
ment.
Mr. President, the 1980 agriculture ap-
propriations bill includes $16,840,597,000
in budget authority, plus $1,831,086,000
in section 32 transfers and $84,726,000
in other transfers, for total obligational
authority of $18,756,409,000.
In gross terms, the bill is $1,482,937,-
000 less than the President's request in
budget authority, and $1,278,208,000 less
than the total obligational authority re-
quested in the budget, but these figures
mask the real totals because of the food
stamp authorization ceiling which has
resulted in an unrealistically low food
stamp figure in the bill. As I explained
earlier, this could require some $2.4 bil-
lion .more than is included in the bill.
Making adjustments for food stamps,
section 32 receipts which were higher
than estimated in the President's
budget, and the home ownership assist-
ance program, which is unusual in that
it is a 33-year housing program, the bill
before the Senate, according to the cal-
culations of the committee staff, is ac-
tually $189 million more than the Presi-
dent's budget in new budget authority. business and industrial loans, which are
This is shown on table I attached. authorized at the $1.1 billion level.
Mr. President, review of this bill has Grants for various rural development
been a difficult task this year, given the programs are also included in this title,
competing pressures of fiscal tightness in totaling $377.7 million, and involving
overall budget and the many requests $300 million for water and waste dis-
from both outside groups and Members
of the Congress as well. Outside witnesses
appearing before the committee re-
quested total add-ons to the budget of
$2.9 billion in budget authority. Senators
appearing before the committee or com-
municating their views to us, requested
add-ons to the budget of about $700 mil-
lion. We have tried to fashion a reason-
able bill that adds in the items that are
of most merit, but keeps these add-ons
to a minimum.
The committee report contains a sec-
tion on pages 7 and 8 that summarizes
major changes to the House bill, and I
ask unanimous consent that it be printed
in the RECORD at the conclusion of my
remarks.
Now, I would like to summarize what
is in the bill by title.
Title I, agricultural programs, includes:
The sum of $859,515,000 for the Science
and Education Administration,.including
$370,679,000 for agricultural research in-
house, $198,484,000 for cooperative re-
search, and $274,767,000 for extension.
The grand total for all SEA programs is
$59.8 million above the budget and $16.9
million above the House allowance. In-
cluded here are many restorations of
items cut in the budget, and funding for
the competitive grants progam as well as
formula grant programs.
The sum of $248,241,000 for the Animal
and Plant Health Inspection Service, a
figure which is $27,265,000 above the
budget and $10,658,000 above the House
figure. Included here are funds for plant
and animal disease and pest control, in-
cluding a significant increase to fund a
10-year brucellosis eradication program.
The sum of $278,430,000 for activities
of the Food Safety and Quality Service.
This principally involves meat, poultry
and egg inspection, as well as voluntary
grading activities.
The sum of $334,935,000 including both
appropriations and transfers, for salaries
and expenses of the Agricultural Sta-
bilization and Conservation Service,
principally to run the farm price support
programs.
The sum of $3,056,189,000 for reim-
bursements for net realized losses of the
Commodity Credit Corporation for prior
year price support and loan programs.
In title II, rural development pro-
grams, the bill provides $5 billion for
loans and programs of the rural housing
insurance fund. This includes various
low, moderate and above-moderate in-
come programs, as well as the new home
ownership assistance program (HOAP).
This title also provides $2.7 billion for
loans and programs of the agricultural
credit insurance fund, including $870
million in authorizations for farm own-
ership and $875 million for farm operat-
ing loans.
For the rural development insurance
fund, the bill includes a total authoriza-
tion of $2.1 billion. This fund finances
water and sewer facility loans, as well as
posal, section 111 rural development
planning, business and industrial and
other programs.
Salaries and expenses of the Farmera
Home Administration total $228,278,000
in the bill. Also funded in this title are
salaries and expenses for the Rural Elec-,
trification Administration for $26,045,i
000, along with loan authorizations of
$850 million for electric loans and $250
million for telephone loans.
For the Soil Conservation Service, a
total of $564,134,000 is included. This in-
volves over $254 million for conservation
operations and technical assistance,
$162.5 million for watershed and flood
prevention operations under Public LaWs
566 and 534, $32 million to begin a 3-
year closeout of the resource conserva-
tion and development program, and $75
million for a new rural clean water
program.
The bill also includes $225 million for
conservation programs of the ASCS, in-
cluding $190 million for the agricultural
conservation program.
For title III, domestic programs, the
bill includes $8,528,987,000, funding all
of the child nutrition programs, the
special milk program, the special supple-
mental feeding programs, food stamps,
food donations as well as the necessary
food program administration of the Food
and Nutrition Service.
For title IV, international programs,
the bill includes $56,807,000 for the For-
eign Agricultural Service for agricultural
attaches and market development activi-
ties, plus authority for the various titles
of food for peace, Public Law 480. Here,
the committee recommends funding the
budget request, using available unobli-
gated balances.
Title V of the bill includes $353,534,000
to finance activities of the Food and Drug
Administration- and the Commodity Fu-
tures Trading Commission. Included in
this title is $27 million to fund an ur-
gently needed new laboratory building
for the Food and Drug Administration.
Title VI. includes various general pro-
visions, most of which have previously
appeared in ? agriculture appropriations
acts. A new provision would mandate
that whenever personnel ceilings result
in savings of salaries and expense fund-
ing, these savings revert to the Treasury
without rescission, instead of becoming
available for expenditure for nonperson-
nel costs.
There is one final matter concerning
budgetary scorekeeping. Page 3 of the
committee report on the bill includes a
budgetary impact table that was pre=
pared by CBO. This table is somewhat
misleading, in that all amounts counted
against the Agriculture Subcommittee's
allocations are not shown thereon. I
have included a table at the conclusion
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