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6 December 1999
Source: http://www.usia.gov/cgi-bin/washfile/display.pl?p=/products/washfile/latest&f=99120605.clt&t=/products/washfile/newsitem.shtml


US Department of State
International Information Programs

Washington File
_________________________________

06 December 1999

U.S. Objectives in Wassenaar Regime Not Fulfilled, Officials Say

 (Russia, Ukraine blocked reforms, Reinsch says) (750)

 By Bruce Odessey
 Washington File Staff Writer

 Washington -- U.S. Commerce Department officials say the United States
 achieved none of its main objectives at the December annual meeting of
 the Wassenaar Arrangement export-control regime.

 According to William Reinsch, U.S. under secretary of commerce, Russia
 and Ukraine blocked two of the reforms that the United States was
 pressing.

 Reinsch made the remarks December 6 at an annual Practising Law
 Institute program called "Coping With U.S. Export Controls." He
 attended the Wassenaar meeting in Vienna the previous week.

 Established in 1996, the Wassenaar Arrangement attempts to coordinate
 controls among its 33 members on exports of conventional arms and
 advanced technology to pariah countries and unstable regions.

 By all accounts, it lacks the force of the predecessor Coordinating
 Committee for Multilateral Export Controls (COCOM) from the Cold War,
 in which any member could veto a proposed sale by another member.

 One Wassenaar member can even undercut a denial of an export announced
 by another country by making the sale itself. The United States
 proposed strengthening Wassenaar rules against undercutting, but
 Russia and Ukraine blocked such a change, Reinsch said.

 He said they also blocked another U.S. proposal aimed at requiring
 more reporting by members on approved exports shipments that are
 subject to Wassenaar disciplines.

 According to Tanya Mottley, director of the Strategic Trade Division
 in Reinsch's Commerce Department bureau, the U.S. delegation also
 failed to advance a proposal for Wassenaar controls on shoulder-held
 weapons aimed at military jets called man-portable air defense system
 (MPADS).

 Reinsch said Wassenaar and other multilateral regimes aimed at
 controlling exports of nuclear, biological and chemical weapons and
 missiles have had some success slowing down delivery of critical
 materials to terrorists and pariah states such as Iraq, Libya, Iran
 and North Korea.

 "If we can continue to develop greater information sharing and
 cooperation among Wassenaar Arrangement members," Reinsch said, "we
 will be able to improve the regime's grade from C+ to B+."

 He said the multilateral regimes must work harder to bring non-members
 India, Pakistan and China in line with their nonproliferation goals.

 "This will not be easy," Reinsch said, "and clearly we must work
 harder to show these countries why the regimes are not a club of the
 military 'haves' trying to make sure the 'have-nots' stay that way."

 On another topic, Reinsch said the Clinton administration expects to
 announce in January another round of increases in capacity thresholds
 for controls on exports of high-performance computers, at about the
 same time that the increases announced July 1 go into effect.

 Patricia Sefcik, director of Commerce's computer controls division,
 predicted the threshold would rise from 20,000 to about 30,000 million
 theoretical operations per second (MTOPs) for Tier 2 countries (most
 of Latin America, South Korea, Southeast Asia, Slovenia and South
 Africa).

 She predicted the thresholds for Tier 3 countries (India, Pakistan,
 Israel, China, Russia and 44 other countries) would rise from 12,300
 to 18-20,000 MTOPs for civilian users and from 6,500 to 10-12,000 for
 military users.

 After such announcements by the president, Congress has six months in
 which to object before the increases take effect.

 Commerce Department officials say they expect other policy changes in
 the weeks ahead:

 -- December publication in the Federal Register of regulations on U.S.
 compliance with the Chemical Weapons Convention.

 -- publication of a final regulation on relaxing export controls on
 encryption software.

 -- consideration by President Clinton over whether the Commerce
 Department or the stricter State Department has jurisdiction over
 exports of night-vision equipment.

 -- removal of some Indian entities from a Commerce Department list
 prohibiting all U.S. exports to such entities. An announcement could
 come December 23, when a Commerce report is due to Congress, or at the
 time of a proposed Clinton visit to India in January or February.

 -- announcement of relaxation of controls on exports of some
 commercial goods to North Korea, possibly in January or February.

 Reinsch said he did not expect any reconsideration soon of the U.S.
 comprehensive trade embargo with Libya.

 He also said he expected no action soon in Congress to reform the
 licensing procedure for what are called "deemed exports" -- licenses
 for foreigners hired temporarily in the United States to work on
 advanced technology who could transfer expertise they gain in such
 work to their home country.


Source: http://www.usia.gov/cgi-bin/washfile/display.pl?p=/products/washfile/latest&f=99120602.clt&t=/products/washfile/newsitem.shtml

06 December 1999

Commerce on Export Control Enforcement Agreement

 (Wassenaar Arrangement creates four part program) (400)

 The Wassenaar Arrangement, a 33-country group that promotes restraint
 in transfers of conventional arms and sophisticated technologies, has
 affirmed an agreement on export control enforcement in halting the
 proliferation of weapons of mass destruction, the U.S. Commerce
 Department says.

 The members of the 3-year-old arrangement agreed that export control
 enforcement must include a preventive program, an investigatory
 process, penalties for violations, and international cooperation,
 Commerce's Bureau of Export Administration (BXA) said December 3.

 The group also affirmed that enforcement must be "strong, effective,
 transparent and national law-based," BXA said.

 "This demonstrates that other countries share the U.S. view that
 enforcement is a key element of an effective export control system,"
 Commerce Assistant Secretary for Export Enforcement Amanda DeBusk
 said.

 Following is the text of the BXA announcement:

 (begin text)

 Bureau of Export Administration
 U. S. Department of Commerce
 December 3, 1999

 Commerce Dept. Welcomes International Initiative on Enforcement of
 Export Controls

 Washington -- The Wassenaar Arrangement, a 33-country group which
 promotes transparency, responsibility, and restraint in transfers of
 conventional arms and dual-use technology, today affirmed the
 importance of export control enforcement in halting the proliferation
 of weapons of mass destruction, the U.S. Department of Commerce
 announced.

 Today's agreement results from work initiated by the Export
 Enforcement arm of the U.S. Department of Commerce and was agreed-to
 unanimously by all 33 member countries.

 The participating states affirmed that the elements of export control
 enforcement include a preventive program; an investigatory process;
 penalties for violations; and international cooperation. They also
 affirmed that enforcement be strong, effective, transparent and
 national law-based.

 "The United States continues to work with all of its trading partners
 to ensure that U.S. strategic commodities are not used in the
 proliferation of weapons of mass destruction. I applaud today's action
 on enforcement by Wassenaar which the Clinton Administration worked
 hard for," said Commerce Assistant Secretary for Export Enforcement F.
 Amanda DeBusk.

 "This demonstrates that other countries share the U.S. view that
 enforcement is a key element of an effective export control system,"
 she added.

 The Wassenaar Arrangement on Export Controls for Conventional Arms and
 Dual-Use Goods and Technologies was established in July 1996. Meetings
 are held in Vienna, Austria, where the Arrangement is based.

 (Distributed by the Office of International Information Programs, U.S.
 Department of State.)