Public Papers - 1991
Message to the Congress Transmitting a Report on Export Controls
To the Congress of the United States:
1. On September 30, 1990, in Executive Order No. 12730, I declared a national emergency under the International Emergency Economic Powers Act (``IEEPA'') (50 U.S.C. 1701, et seq.) to deal with the threat to the national security and foreign policy of the United States caused by the lapse of the Export Administration Act of 1979, as amended (50 U.S.C. 2401, et seq.) and the system of controls maintained under that Act. In that order, I continued in effect, to the extent permitted by law, the provisions of the Export Administration Act of 1979, as amended, the Export Administration Regulations (15 C.F.R. 768, et seq. (1991)), and the delegations of authority set forth in Executive Order No. 12002 of July 7, 1977, Executive Order No. 12214 of May 2, 1980, and Executive Order No. 12131 of May 4, 1979, as amended by Executive Order No. 12551 of February 21, 1986.
2. I issued Executive Order No. 12730 pursuant to the authority vested in me as President by the Constitution and laws of the United States, including IEEPA, the National Emergencies Act (``NEA'') (50 U.S.C. 1601, et seq.), and section 301 of title 3 of the United States Code. At that time, I also submitted a report to the Congress pursuant to section 204(b) of IEEPA (50 U.S.C. 1703(b)). Section 204 of IEEPA requires follow-up reports, with respect to actions or changes, to be submitted every 6 months. Additionally, section 401(c) of the NEA requires that the President, within 90 days after the end of each 6-month period following a declaration of a national emergency, report to the Congress on the total expenditures directly attributable to that declaration. This report, covering the 6-month period from April 1, 1991, to September 30, 1991, is submitted in compliance with these requirements.
3. Since the issuance of Executive Order No. 12730, the Department of Commerce has continued to administer the system of export controls, including antiboycott provisions, contained in the Export Administration Regulations. In administering these controls, the Department has acted under a policy of conforming actions under Executive Order No. 12730 to those required under the Export Administration Act, insofar as appropriate.
4. Since my last report to the Congress, there have been several significant developments in the area of export controls:
We continued to address the threat to the national security and foreign policy interests of the United States posed by the spread of weapons of mass destruction. In Executive Order No. 12735 of November 16, 1990, and the Enhanced Proliferation Control Initiative of December 13, 1990 (``EPCI''), we had announced major steps to strengthen export controls over goods, technology, and other forms of assistance that can contribute to the spread of chemical and biological weapons and missile systems.
-- On March 7, 1991, the Department of Commerce issued two new regulations and a proposed rule to implement EPCI. The new regulations controlled the export of 50 chemicals as well as dual-use equipment and technical data that can be used to make chemical and biological weapons. (56 F.R. 10756 and 10760, March 13, 1991.)
-- On August 15, 1991, the Department of Commerce made the proposed rule final. The final rule expands controls to cover exports when the exporter knows or is informed by the Department of Commerce that an export will be used for missile technology or chemical or biological weapons, or is destined for a country, region, or project engaged in such activities. The rule also restricts U.S. citizens participation in such activities, as well as the export of chemical plants and plant designs. (56 F.R. 40494, August 15, 1991.)
-- The Department of Commerce also issued a new regulation that revises the list of items subject to control for nuclear nonproliferation reasons. The updated list reflects technological developments in the field, as well as U.S. nuclear nonproliferation policy. (56 F.R. 42652, August 28, 1991.)
In light of the changes that have occurred in Eastern Europe, negotiations with our Coordinating Committee (COCOM) partners yielded a streamlined Core List of truly strategic items that will remain subject to multilateral national security controls. The Department of Commerce implemented this new Core List effective September 1, 1991. In implementing the Core List the Department totally revised its Commodity Control List, now called the Commerce Control List (CCL), and made certain additional substantive changes in controls. (56 F.R. 42824, August 29, 1991.)
-- For the first time, all controlled software and technical data have been integrated into the CCL, including definitions for these items that parallel those of our COCOM partners.
-- Following my decision to remove certain sanctions under the Comprehensive Anti-Apartheid Act, controls on certain exports to South Africa of computers, aircraft, and petroleum products have been removed. Other controls affecting South Africa, such as those implemented pursuant to the United Nations arms embargo, remain in place.
-- On August 28, 1991, the Department of Commerce submitted a report to the Congress indicating that the Department was reformulating controls on exports to countries that had been designated by the Secretary of State as repeatedly having provided support for acts of international terrorism. In a few instances we reported that controls were being expanded, particularly with respect to Iran and Syria, the only two of the six countries designated as terrorist-supporting not presently subject to separate trade embargoes. In addition, the report indicated that the Department was expanding controls on items of missile proliferation concern. The changes reported to the Congress were implemented in the course of revising the CCL.
Enforcement efforts have continued unabated:
-- On August 21, 1991, the Department of Commerce renewed a previous Temporary Denial Order to withhold the export privileges of a Dutch company, Delft Instruments N.V., and certain related companies, in connection with an investigation of illegal reexport of U.S.-origin night vision equipment to Iraq. (56 F.R. 42977, August 30, 1991.)
-- On August 28, 1991, Special Agents from the Department of Commerce's Bureau of Export Administration arrested two Iranian businessmen in Newport Beach, California, on charges of illegally exporting to Iran U.S.-origin equipment with possible nuclear and/or missile technology applications. The two businessmen were subsequently charged in a 17-count indictment with conspiracy, illegally exporting U.S.-origin equipment, and making false statements to the United States Government in connection with the exports.
-- Following numerous discussions with officials of Czechoslovakia, Hungary, and Poland, the Department of Commerce has assisted the new East European democracies to implement and strengthen their export control systems, including prelicense inspections and postshipment verifications. These developments will allow for enhanced and much-needed trade in high technology items in the region, while helping to prevent unauthorized shipments or uses of such items.
5. The expenses incurred by the Federal Government in the 6-month period from April 1, 1991 to September 30, 1991, that are directly attributable to the exercise of authorities conferred by the declaration of a national emergency with respect to export controls were largely centered in the Department of Commerce, Bureau of Export Administration. Expenditures by the Department of Commerce are anticipated to be ,390,000.00, most of which represents wage and salary costs for Federal personnel.
6. The unrestricted access of foreign parties to U.S. goods, technology, and technical data and the existence of certain boycott practices of foreign nations, in light of the expiration of the Export Administration Act of 1979, continue to constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States. I shall continue to exercise the powers at my disposal to retain the export control system, including the antiboycott provisions, and will continue to report periodically to the Congress.
The White House,
October 17, 1991.