    [Public Papers of the Presidents of the United States: George W. Bush (2001, Book II)]
    [August 17, 2001]
    [Pages 992-993]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Letter to Congressional Leaders on Continuation of Export Control
    Regulations
    August 17, 2001

    Dear Mr. Speaker:  (Dear Mr. President:)
        Pursuant to section 204(b) of the International Emergency Economic
    Powers Act, 50 U.S.C. 1703(b), I hereby report to the Congress that I
    have today exercised the authority granted by this Act to continue in
    effect the system of controls contained in 15 C.F.R. Parts 730-774,
    including restrictions on participation by U.S. persons in certain
    foreign boycott activities, that heretofore has been maintained under
    the authority of the Export Administration Act of 1979 (EAA), as
    amended, 50 U.S.C. App. 2401 et seq. In addition, I have made provision
    for the administration of section 38(e) of the Arms Export Control Act,
    22 U.S.C. 2778(e).
        The exercise of this authority is necessitated by the expiration of
    the EAA on August 20, 2001, and the lapse in the system of controls
    maintained under that Act that would result from such expiration.
        In the absence of controls, foreign parties would have unrestricted
    access to U.S. commercial products, technology, and assistance, posing
    an unusual and extraordinary threat to national security, foreign
    policy, and economic objectives critical to the United States. In
    addition, U.S. persons would not be prohibited from complying with
    certain foreign boycott requests. This would seriously harm our foreign
    policy interests, particularly in the Middle East.
        Controls established in 15 C.F.R. Parts 730-774, and continued by
    this action, include the following:

         National security export controls restricting the export of
                goods and technologies that would make a significant
                contribution to the military potential of certain other
                countries and that would prove detrimental to the national
                security of the United States.
         Foreign policy controls that further the foreign policy
                objectives of the United States or fulfill its declared
                international obligations in such widely recognized areas as
                human rights, antiterrorism, regional stability, missile

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                technology nonproliferation, and chemical and biological
                weapons nonproliferation.
         Nuclear nonproliferation controls that are maintained for
                both national security and foreign policy reasons and that
                support the objectives of the Nuclear Nonproliferation Act.
         Short supply controls that protect domestic supplies, and
                antiboycott regulations that prohibit compliance with
                foreign boycotts aimed at countries friendly to the United
                States.

        Consequently, I have issued an Executive Order (a copy of which is
    attached) to continue in effect all rules and regulations issued or
    continued in effect by the Secretary of Commerce under the authority of
    the EAA, and all orders, regulations, licenses, and other forms of
    administrative actions under the Act, except to the extent they are
    inconsistent with sections 203(b) and 206 of the International Emergency
    Economic Powers Act.
        The Congress and the Executive have not permitted export controls to
    lapse since they were enacted under the Export Control Act of 1949. Any
    termination of controls could permit transactions to occur that would be
    seriously detrimental to the national interests we have heretofore
    sought to protect through export controls and restrictions on compliance
    by U.S. persons with certain foreign boycotts. I believe that even a
    temporary lapse in this system of controls would seriously damage our
    national security, foreign policy, and economic interests and undermine
    our credibility in meeting our international obligations.
        The countries affected by this action vary depending on the
    objectives sought to be achieved by the system of controls instituted
    under the EAA. Potential adversaries may seek to acquire sensitive U.S.
    goods and technologies. Other countries serve as conduits for the
    diversion of such items. Still other countries have policies that are
    contrary to U.S. foreign policy or nonproliferation objectives, or
    foster boycotts against friendly countries. For some goods or
    technologies, controls could apply even to our closest allies in order
    to safeguard against diversion to potential adversaries.
        It is my intention to terminate the Executive Order upon enactment
    into law of new authorizing legislation for the U.S. export control
    regime. Such legislation is long overdue. The EAA is a Cold War statute
    that does not reflect and is ill-suited to deal with current economic
    and political realities. There is a strong need for a new statute to
    facilitate an effective modern export control regime--one that
    safeguards our national security and furthers our foreign policy
    objectives, while recognizing the current realities of today's fast-
    paced and dynamic business environment. I look forward to signing into
    law such legislation in the near future.
             Sincerely,

                                                              George W. Bush

    Note: Identical letters were sent to J. Dennis Hastert, Speaker of the
    House of Representatives, and Richard B. Cheney, President of the
    Senate. This letter was released by the Office of the Press Secretary on
    August 20. The Executive order of August 17 is listed in Appendix D at
    the end of this volume.