[Weekly Compilation of Presidential Documents Volume 37, Number 34 (Monday, August 27, 2001)]
[Pages 1187-1188]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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:
 <bullet>    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.
 <bullet>    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 
            technology nonproliferation, and chemical and biological 
            weapons nonproliferation.
 <bullet>    Nuclear nonproliferation controls that are maintained for 
            both national security and foreign policy reasons and that 
            support the objectives of the Nuclear Nonproliferation Act.
 <bullet>    Short supply controls that protect domestic supplies, and 
            antiboycott regulations that prohibit compliance with 
            foreign boycotts aimed at countries friendly to the United 
            States.

[[Page 1188]]

    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.