    [Public Papers of the Presidents of the United States: WILLIAM J. CLINTON (1999, Book II)]
    [July 23, 1999]
    [Pages 1323-1324]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Letter to Congressional Leaders Transmitting a Report on Actions
    Concerning Digital Computer Exports
    July 23, 1999

    Dear __________:
        In accordance with the provisions of section 1211(d) of the National
    Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85) (the
    ``Act''), I hereby notify you of my decision to establish a new level
    for the notification procedure for digital computers set forth in
    section 1211(a) of the Act. The new level will be 6,500 millions of
    theoretical operations per second (MTOPS). I have taken this action
    based on the recommendation of the Departments of Defense, Commerce,
    State, and Energy. The attached report provides the rationale supporting
    this decision and fulfills the requirements of section 1211(d) of the
    Act.
        Section 1211(d) provides that any adjustment to the control level
    described in section 1211(a) cannot take effect until 180 days after
    receipt

    [[Page 1324]]

    of this report by the Congress. Section 1211(e) provides that any
    deletion of a country from the Tier 3 group cannot take effect until 120
    days after the Congress is notified. Given the rapid pace of
    technological change in the information technology industry, these time
    periods are too lengthy. I hope that we can work together to reduce both
    notification periods to 30 days. Such changes will permit implementation
    of my current decision and future changes in a more timely fashion.
        I have directed the Secretary of Commerce to adjust the level at
    which an individual license is required for computer exports to Tier 3
    countries. For sales to military entities, the level will be raised from
    2,000 MTOPS to 6,500 MTOPS. For sales to civilian end users, the new
    level will be raised from 7,000 MTOPS to 12,300 MTOPS. The Secretaries
    of Commerce and Defense will review these levels, as well as the level
    described in section 1211(a), in 6 months to determine whether further
    adjustments will be necessary at that time. They will conduct additional
    such reviews at regular 6-month periods thereafter.
        Such action will complement other actions that I am taking with
    respect to the export and reexport of computers. I have directed the
    Secretary of Commerce to adjust the level at which an individual license
    is required for computer exports to Tier 2 countries from 10,000 MTOPS
    to 20,000 MTOPS. I have also asked the Secretaries of Commerce and
    Defense to assess whether further adjustments to 32,000-36,000 MTOPS
    will be required in 6 months. They will conduct additional reviews at 6-
    month intervals thereafter. Additionally, I have directed the Secretary
    of Commerce to move the Czech Republic, Hungary, Poland, and Brazil from
    Tier 2 to Tier 1. It is likely that additional countries will be moved
    from Tier 2 to Tier 1 in the coming months.
        All these adjustments will take place immediately, with the
    exception of the change to the individual licensing level for military
    end users in Tier 3, which will coincide with the change for the
    notification provisions of section 1211(a) of the Act. Both these
    changes will become effective at the end of the 180-day notification
    period, unless the Congress provides for a shorter period.
        I also want to inform you of my support for section 1407(c) of S.
    1059, or similar legislative language that would permit me to adjust the
    level of computer exports above which the Department of Commerce is
    required to perform post-shipment verifications in Tier 3 countries.
    Failure to adjust this level will result in the expenditure of scarce
    enforcement resources for questionable benefits to our shared national
    security concerns.
        I look forward to working cooperatively with the Congress on these
    issues.
            Sincerely,

                                                          William J. Clinton

    Note: Identical letters were sent to John W. Warner, chairman, Senate
    Committee on Armed Services; Phil Gramm, chairman, Senate Committee on
    Banking, Housing, and Urban Affairs; Floyd Spence, chairman, House
    Committee on Armed Services; and Benjamin A. Gilman, chairman, House
    Committee on International Relations. This letter was released by the
    Office of the Press Secretary on July 26.