[Federal Register Volume 65, Number 235 (Wednesday, December 6, 2000)]
[Presidential Documents]
[Pages 76558-76559]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31252]


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  Federal Register / Vol. 65, No. 235 / Wednesday, December 6, 2000 / 
Presidential Documents  

[[Page 76558]]


                Executive Order 13177 of December 4, 2000

                
National Commission on the Use of Offsets in 
                Defense Trade and President's Council on the Use of 
                Offsets in Commercial Trade

                By the authority vested in the President by the 
                Constitution and the laws of the United States of 
                America, including Public Law 106-113 and the Federal 
                Advisory Committee Act, as amended (5 U.S.C. App. 2), 
                and in order to implement section 1247 of Public Law 
                106-113 (113 Stat. 1501A-502) and to create a parallel 
                ``President's Council on the Use of Offsets in 
                Commercial Trade,'' it is hereby ordered as follows:

                Section 1. Membership. Pursuant to Public Law 106-113, 
                the ``National Commission on the Use of Offsets in 
                Defense Trade'' (Commission) comprises 11 members 
                appointed by the President with the concurrence of the 
                Majority and Minority Leaders of the Senate and the 
                Speaker and the Minority Leader of the House of 
                Representatives. The Commission membership includes: 
                (a) representatives from the private sector, including 
                one each from (i) a labor organization, (ii) a United 
                States defense manufacturing company dependent on 
                foreign sales, (iii) a United States company dependent 
                on foreign sales that is not a defense manufacturer, 
                and (iv) a United States company that specializes in 
                international investment; (b) two members from academia 
                with widely recognized expertise in international 
                economics; and (c) five members from the executive 
                branch, including a member from the: (i) Office of 
                Management and Budget, (ii) Department of Commerce, 
                (iii) Department of Defense, (iv) Department of State, 
                and (v) Department of Labor. The member from the Office 
                of Management and Budget will serve as Chairperson of 
                the Commission and will appoint, and fix the 
                compensation of, the Executive Director of the 
                Commission.

                Sec. 2. Duties. The Commission will be responsible for 
                reviewing and reporting on: (a) current practices by 
                foreign governments in requiring offsets in purchasing 
                agreements and the extent and nature of offsets offered 
                by United States and foreign defense industry 
                contractors; (b) the impact of the use of offsets on 
                defense subcontractors and nondefense industrial 
                sectors affected by indirect offsets; and (c) the role 
                of offsets, both direct and indirect, on domestic 
                industry stability, United States trade 
                competitiveness, and national security.

                Sec. 3. Commission Report. Not later than 12 months 
                after the Commission is established, it will report to 
                the appropriate congressional committees. In addition 
                to the items described in section 2 of this order, the 
                report will include: (a) an analysis of (i) the 
                collateral impact of offsets on industry sectors that 
                may be different than those of the contractor paying 
                offsets, including estimates of contracts and jobs lost 
                as well as an assessment of damage to industrial 
                sectors; (ii) the role of offsets with respect to 
                competitiveness of the United States defense industry 
                in international trade and the potential damage to the 
                ability of United States contractors to compete if 
                offsets were prohibited or limited; and (iii) the 
                impact on United States national security, and upon 
                United States nonproliferation objectives, of the use 
                of co-production, subcontracting, and technology 
                transfer with foreign governments or companies, that 
                results from fulfilling offset requirements, with 
                particular emphasis on the question of dependency upon 
                foreign nations for the supply of critical components 
                or technology; (b) proposals for unilateral, bilateral, 
                or multilateral measures aimed at reducing any 
                detrimental

[[Page 76559]]

                effects of offsets; and (c) an identification of the 
                appropriate executive branch agencies to be responsible 
                for monitoring the use of offsets in international 
                defense trade.

                Sec. 4. Administration, Compensation, and Termination. 
                (a) The Department of Defense will provide 
                administrative support and funding for the Commission 
                and Federal Government employees may be detailed to the 
                Commission without reimbursement.

                    (b) Members of the Commission who are not officers 
                or employees of the Federal Government will be 
                compensated at a rate of basic pay prescribed for level 
                IV of the Executive Schedule under section 5315 of 
                title 5, United States Code, for each day (including 
                travel time) during which such member is engaged in 
                performance of the duties of the Commission. Members of 
                the Commission who are officers or employees of the 
                Federal Government will serve without compensation in 
                addition to that received for their services as 
                officers or employees of the Federal Government.
                    (c) Members of the Commission will be allowed 
                travel expenses, including per diem in lieu of 
                subsistence, under subchapter 1 of chapter 57 of title 
                5, United States Code, while on business in the 
                performance of services for the Commission.
                    (d) The Commission will terminate 30 days after 
                transmitting the report required in section 1248(b) of 
                Public Law 106-113 (113 Stat. 1501A-505).

                Sec. 5. Establishment and Membership. (a) There is 
                established, pursuant to the Federal Advisory Committee 
                Act, as amended (5 U.S.C. App.), the ``President's 
                Council on the Use of Offsets in Commercial Trade'' 
                (Council).

                    (b) The Council shall be composed of the appointed 
                members of the Commission or their designees.

                Sec. 6. Duties and Report of the Council. The Council 
                shall review and report to the President, through the 
                Director of the Office of Management and Budget, on the 
                use of offsets in commercial trade, including their 
                impact on the United States defense and commercial 
                industrial base. The Council shall consult with and, as 
                appropriate, provide information to the Commission.

                Sec. 7. Administration. (a) The Department of Defense 
                shall provide administrative support and funding for 
                the Council.

                    (b) The heads of executive departments and agencies 
                shall, to the extent permitted by law, provide to the 
                Council such information as it may require for the 
                purpose of carrying out its duties.
                    (c) Members of the Council shall serve without 
                compensation.

                Sec. 8. General. (a) Notwithstanding any other 
                Executive Order, the functions of the President under 
                the Federal Advisory Committee Act, as amended, except 
                that of reporting to the Congress, that are applicable 
                to the Council, shall be performed by the Department of 
                Defense in accordance with guidelines that have been 
                issued by the Administrator of General Services.

                    (b) The Council shall terminate on the date of the 
                transmission of the report required by section 1248(b) 
                of Public Law 106-113 (113 Stat. 1501A-505).

                    (Presidential Sig.)

                THE WHITE HOUSE,

                    December 4, 2000.

[FR Doc. 00-31252
Filed 12-5-00; 8:45 am]
Billing code 3195-01-P