[Weekly Compilation of Presidential Documents Volume 35, Number 30 (Monday, August 2, 1999)]
[Pages 1492-1493]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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 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

[[Page 1493]]

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.