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Tuesday, April 12, 1983-Continued

William T. Archey, Deputy Assistant Secretary for Trade Administration,
Department of Commerce....

Jack A. Blum, general counsel, Independent Gasoline Marketers Council..
Marshall Hoyler, former policy analyst, Office of the Secretary, Depart-
ment of Energy

Howard D. Marlowe, associate director of legislation, AFL-CIO, on behalf of the Coalition to Keep Alaska Oil..

Mark Cooper, research director, Consumer Energy Council of America.
Charles Frazier, director, Washington office, National Farmers Organiza-
tion......

Jack Goldstein, vice president and economist, Overseas Shipholding
Group.

Frank Drozak, president, Maritime Trades Department, AFL-CIO

Jon D. Helms, vice president of planning, Sun Refining and Marketing Co Wednesday, April 13, 1983:

Hon. Al Swift, a Representative in Congress from the State of Washing

ton

Hon. Ed Zschau, a Representative in Congress from the State of Califor-
nia.......

Hon. Norman Y. Mineta, a Representative in Congress from the State of
California

Homer E. Moyer, Jr., Miller & Chevalier, and chairman, American Bar
Association Subcommittee on the Extraterritorial Application of the
Export Administration Act, accompanied by David E. Birenbaum,
Fried, Frank, Harris, Shriver, and Kampleman
Thursday, April 14, 1983:

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669

685

701

711

716

716

744

754

817

823

826

837

Richard L. McElheny, Director General, U.S. and Foreign Commercial
Service, Department of Commerce.

Hon. Beverly Byron, a Representative in Congress from the State of
Maryland..

890

910

Paul T. O'Day, Acting Assistant Secretary for Trade Development, Department of Commerce...

931

Clyde V. Prestowitz, Acting Assistant Secretary for International Economic Policy, Department of Commerce..

952

Edward Kilgore on behalf of Hon. George Busbee, former Governor of
Georgia, and chairman, Export Promotion Task Force, President's
Export Council.

967

Thursday, April 28, 1983 (subcommittee markup):

William T. Archey, Deputy Assistant Secretary for Trade Administration,
Department of Commerce..

Grant D. Aldonas, Office of East-West Trade, Department of State.......
Friday, April 29, 1983 (subcommittee markup): Michael E. Zacharia, Special
Counsel to the Under Secretary for International Trade, Department of
Commerce

Monday, May 2, 1983 (subcommittee markup):

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995

104

Denis Lamb, Deputy Assistant Secretary for Trade and Commercial Affairs, Department of State

Michael E. Zacharia, Special Counsel to the Under Secretary for International Trade, Department of Commerce..

1058

1058

William T. Archey, Deputy Assistant Secretary for Trade Administration,
Department of Commerce..

1065

William Maroni, Director, Congressional Affairs, Office of the U.S. Trade
Representative

1106

Wednesday, May 4, 1983 (subcommittee markup; no witnesses)
Thursday, May 5, 1983 (full committee hearing):

Bernard J. O'Keefe, chairman, EG&G Corp., and chairman, National
Association of Manufacturers...

Hon. Lionel H. Olmer, Under Secretary for International Trade, Department of Commerce

1127

1158

John Baize, Washington program manager, American Soybean Associa-
tion
Wednesday, May 18, 1983 (full committee markup): Hon. Lawrence J. Brady,
Assistant Secretary for Trade Administration, Department of Commerce..

Alfred J. Murrer, chairman, Gleason Works, representing the National
Machine Tool Builders' Association....

1186

1223

1251

Page

Wednesday, May 25, 1983 (full committee markup):

William T. Archey, Deputy Assistant Secretary for Trade Administration,
Department of Commerce..

1293

Michael Maloof, Office of Strategic Trade Policy, Department of Defense.. 1304 Thursday, May 26, 1983 (full committee markup):

William T. Archey, Deputy Assistant Secretary for trade Administration,
Department of Commerce...

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John Baize, Washington program manager, American Soybean Association

154

Prepared statement of Hon. Bill Frenzel, a Representative in Congress from the State of Minnesota....

322

Correspondence from the Scientific Apparatus Makers Association on embedded microprocessors..

465

Statements:

John Fluke Manufacturing Co., Inc....

485

Edward W. Stimpson, president, General Aviation Manufacturers Association.

506

Submission by the National Machine Tool Builders' Association on the
Bryant Grinder Case

562

Letters from labor and consumer groups on the issue of exports of Alaskan oil
Statements:

723

D. Scott Fitzwater, president, Dillingham Ship Repair.
American Maritime Association.....

737

770

Peter J. Luciano, executive director, Transportation Institute..

778

Jesse M. Calhoon, president, National Marine Engineers' Beneficial Association ......

801

Andrew Palmer, Washington representative, Coalition Against Oil Pollution.

813

Hon. Les AuCoin, a Representative in Congress from the State of Oregon.
Hon. Sam Nunn, U.S. Senator from the State of Georgia
Information relating to U.S. relations with Denmark and Greenland........
Letters:

859

862

995

May 4, 1983 from Hon. Timonthy E. Wirth to Hon. Don Bonker, and joint statement by Chairmen Clement J. Zablocki and John Dingell. May 10, 1983, from Hon. Sam Gibbons to Hon. Clement Zablocki. May 12, 1983, from D. Lowell Jensen, Assistant Attorney General, Criminal Division, Department of Justice, to Hon. Clement Žablocki.. Articles from the May 3, 1983 Wall Street Journal, entitled "The Soviets Meet Resistance Across the Baltic", and the February 24, 1983 Listener, entitled "How the Soviets are Acquiring Western High Technology"

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a. Text of H.R. 2761, to amend the authorities contained in the
Export Administration Act of 1979, and for other purposes

1381

b. Text of H.R. 2500, to amend and reauthorize the Export Adminis-
tration Act of 1979....

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c. Text of H.R. 2971, to amend the authorities contained in the Export Administration Act of 1979, and for other purposes d. Text of H.R. 3231, to amend the authorities contained in the Export Administration Act of 1979, and for other purposes 2. Report by the Comptroller General of the United States, dated May 26, 1982, entitled "Export Control Regulation Could Be Reduced Without Affecting National Security"

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3. Statement of Hon. Don Young, a Representative in Congress from the State of Alaska......

1578

4. Responses by Richard L. McElheny, to additional questions raised at the April 14, 1983 hearing.

1581

5. Responses by Bernard J. O'Keefe to additional questions submitted for the record...

1582

6. Letter dated March 18, 1983, from Doug Glant, Washington Export Coun-
cil vice chairman, to Hon. Don Bonker...

7. Statement of the American Association of Exporters and Importers
8. Statement of the American League for Exports and Security Assistance
9. Statement of the Business Roundtable....

10. Statement of the Association of Data Processing Service Organizations
11. Statement of the Aerospace Industries Association of America, Inc............
12. Statement of the United States Council for International Business
13. Statement of the North American Export Grain Association, Inc
14. Statement of Ronald L. Danielian, executive vice president and treasurer,
International Economic Policy Association.......

15. Statement of the Institute of Electrical and Electronics Engineers, Inc........
16. Letter dated April 15, 1983, from William D. Carey, executive officer,
American Association for the Advancement of Science, to Hon. Don
Bonker.

17. Letter dated April 29, 1983, from Robert M. Rosenzweig, president, Association of American Universities, to Hon. Don Bonker..

Page

1585 1587 1650

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18. Letter dated April 18, 1983, from Michihiko Kunihiro, Minister, Embassy of Japan, to Hon. Don Bonker

19. Letter dated May 5, 1983, from Hon. Bill Sheffield, Governor, State of Alaska, to Hon. Člement Zablocki

20. Newspaper articles referenced in April 12, 1983 subcommittee hearing concerning the export of Alaskan oil

21. Report of the Center for Strategic and International Studies, Georgetown University entitled "Alaska North Slope Oil Exports: The Pros and Cons" 1764 22. Letter dated February 28, 1983, from Lloyd Anderson, executive director, Port of Portland, to Hon. Don Bonker.

24. Letter dated April 12, 1983, from Edwin M. Hood, president, Shipbuilders Council of America, to Hon. Don Bonker, transmitting a report entitled "The Unrecognized Crisis in National Security"

23. Letter dated March 30, 1983, from W. M. Benkert, president, American Institute of Merchant Shipbuilding

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1789

25. Letter dated April 12, 1983, from H.R. Del Mar, president, National Maritime Council

26. Letter dated April 18, 1983, from Jon D. Helms, vice president, planning, Sun Refining and Marketing Co., to Hon. Don Bonker 27. Letter and statement dated April 25, 1983, from Julian H. Singman, president, Maritime Institute for Research and Industrial Development..... 1813 28. Statement of Harold P. Bernstein, chairman, Northville Industries Corp. 29. Letter dated May 12, 1983, from J. James Hur, director, Federal Government relations, Atlantic Richfield Co., to Hon. Don Bonker 30. Letter dated April 21, 1983, from Robin M. Pate, executive vice president, The Enterprise Companies Inc., to Hon. Don Bonker..

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31. Letter and statement dated April 25, 1983, from Robert V. Maudlin, Washington representative, Brass and Bronze Institute, to Hon. Don Bonker

1839

32. Letter dated April 27, 1983, from R. M. Cooperman, executive director, Aluminum Recycling Association, to Hon. Don Bonker.

1845

33. Statement of the Ferrous Scrap Consumers Coalition
34. Letters and aide-memoires from foreign governments concerning the
Export Administration Act:

a. Letter dated March 21, 1983, from Sir Roy Denman, The Head of
the Delegation of the Commission of the European Communities,
to Hon. Don Bonker.....

b. Letter dated March 31, 1983, from Theodor Wallau, Minister,
Embassy of the Federal Republic of Germany, to Hon. Don
Bonker..

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d. Letter dated April 26, 1983, from Bernard Vernier-Palliez, Ambas-
sador from France, to Hon. Clement Zablocki.

c. Letter dated March 16, 1983, from Hon. Bernard Vernier-Palliez,
Ambassador from France, to Hon. Bonker

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e. Letter dated April 28, 1983, from Sir Roy Denman, Head of the
Delegation, Delegation of the Commission of the European Com-
munities.

1875

f. Letter dated May 9, 1983, from Sir Oliver Wright, Ambassador of
Great Britain

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lia..

g. Diplomatic Note dated May 2, 1983, from the Embassy of Canada.... 1889 h. Diplomatic Note dated May 20, 1983, from the Embassy of Austra

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EXTENSION AND REVISION OF THE EXPORT

ADMINISTRATION ACT OF 1979

THURSDAY, FEBRUARY 24, 1983

HOUSE OF REPRESENTATIVES,
COMMITTEE ON FOREIGN Affairs,
SUBCOMMITTEE ON INTERNATIONAL
ECONOMIC POLICY AND TRADE,
Washington, DC.

The subcommittee met at 2:15 p.m. in room 2200, Rayburn House Office Building, Hon. Don Bonker (chairman of the subcommittee), presiding.

Mr. BONKER. The Subcommittee on International Economic Policy and Trade will come to order. This is our first hearing of the 98th Congress. Judging from the turnout this afternoon, there is plenty of interest in the Export Administration Act, which is the subject of this hearing, and is up for reauthorization this year.

The subcommittee's schedule is to proceed throughout March with hearings on the Export Administration Act. We were to begin Tuesday with administration witnesses, but because of full committee business that particular day, that hearing has been rescheduled for next Tuesday. Today we have an opportunity to hear from distinguished witnesses representing the business community.

I plan to introduce a comprehensive reauthorization bill in early April and I am sure the administration will have its proposal before the subcommittee by then. We will begin markup after the Easter recess and report a bill to the full committee by the latter part of April. The full committee must complete its action by May 15. I expect Congress to be working on this particular bill through most of the year. The expiration date of the act, as you know, is September 30.

The Export Administration Act provides the authority for the President to deny export licenses for national security reasons and for foreign policy reasons. There is also a provision which enables the President to impose export controls on materials in scarce supply. The subcommittee will be looking at these matters. The subcommittee will also be looking at the Arab boycott provision of the act and the present ban on the export of crude oil from the North Slope of Alaska. These are all interesting, sometimes controversial, issues in the legislation.

Earlier this week I introduced a series of bills that amend the Export Administration Act. There is also a statement on the bills in Tuesday's Congressional Record. H.R. 1564, H.R. 1565, and H.R. 1566 contain the amendments I propose. They would limit the

President's authority to impose foreign policy controls retroactively and extraterritorially. They would also reduce licensing requirements to COCOM countries and to U.S. subsidiaries and affiliates abroad. Hopefully our witnesses have received advance copies of these proposals and may choose to comment on them in their testimony; if not, perhaps in the question and answer period.

Before I proceed with the witnesses I would like to call upon the ranking minority member of the subcommittee. He is as new at this as I am since this is my first term as chairman of the subcommittee. This is Mr. Roth, the new ranking minority member of the subcommittee, replacing Mr. Lagomarsino who has served in that position in the past.

Mr. Roth, I wonder if you have any opening comments at this time.

Mr. ROTH. Thank you very much, Mr. Chairman.

As you have mentioned, you are a new chairman, but I also know you are a quick study, so I am sure that we will have the necessary facts and information marshaled in order to examine this complex issue.

I want to thank you for taking the initiative to call these hearings on the Export Administration Act. I think it is one of the most important pieces of legislation we will examine this session of Congress. Over the next several weeks our attention will be focused on renewal of the Export Administration Act.

At the same time, I think we must look at the larger picture of American exports and the role they play in our Nation's economy. Economic indicators demonstrate America is now marching out of the recession, but we must be certain that congressional action enhances rather than weakens our return to a robust economy and full employment. Increased exports are the sort of raw material that is needed to fuel our coming economic recovery and the Export Administration Act can be used as one vehicle to drive a robust and comprehensive American trade policy.

As far as I am concerned, for all too long our Government has exerted through this act a negative function, telling industry what cannot be exported. We have done very little to promote exports. This is an area in which we can make major positive contributions. I hope we can work together toward development of a comprehensive trade policy regarding export controls in the forthcoming weeks.

As you may know, Mr. Chairman, I have a strong interest in international trade. Each year in my district I hold a special conference on exports. At last year's meeting, some 300 Great Lakes business executives attended. There is a real interest on the part of the American businessman in finding out more about international trade opportunities, however, the Export Administration Act is always something of a mystery to the business community.

On the one hand, our Government tells the businessman to go out and sell in new markets, but when the sale is made, the company soon finds that, in many cases, to complete the sale, the contract has to run the gauntlet posed by the Export Administration Act. Through these hearings, and the amendments that we'll be proposing, I hope that we'll be able to eliminate many of the roadblocks, and bring the law up to date.

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