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[House Document 107-114]
[From the U.S. Government Publishing Office]

                                     

107th Congress, 1st Session - - - - - - - - - - - - House Document 107-114

 
                    CONTINUATION OF EXPORT CONTROL
                              REGULATIONS

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              Transmitting

  NOTIFICATION THAT HE HAS EXERCISED THE AUTHORITY GRANTED TO HIM TO 
 CONTINUE THE SYSTEM OF CONTROLS CONTAINED IN 15 C.F.R. PARTS 730-774 
 AND ISSUED AN EXECUTIVE ORDER TO CONTINUE EXPORT CONTROL REGULATIONS, 
                     PURSUANT TO 50 U.S.C. 1703(b)

    September 5, 2001.--Referred to the Committee on International 
                  Relations and ordered to be printed
                                           The White House,
                                       Washington, August 17, 2001.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: 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 
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 needed 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.
                            Executive Order

                              ----------                              

               Continuation of Export Control Regulations

    By the authority vested in me as President by the 
Constitution and the laws of the United States of America, 
including but not limited to section 203 of the International 
Emergency Economic Powers Act (``Act'') (50 U.S.C. 1702), I, 
GEORGE W. BUSH, President of the United States of America, find 
that the unrestricted access of foreign parties to U.S. good 
and technology and the existence of certain boycott practices 
of foreign nations, in light of the expiration of the Export 
Administration Act of 1979, as amended (50 U.S.C. App. 2401 et 
seq.), constitute an unusual and extraordinary threat to the 
national security, foreign policy, and economy of the United 
States and hereby declare a national emergency with respect to 
that threat.
    Accordingly, in order (a) to exercise the necessary 
vigilance over exports and activities affecting the national 
security of the United States; (b) to further significantly the 
foreign policy of the United States, including its policy with 
respect to cooperation by U.S. persons with certain foreign 
boycott activities, and to fulfill its international 
responsibilities; and (c) to protect the domestic economy from 
the excessive drain of scarce materials and reduce the serious 
economic impact of foreign demand, it is hereby ordered as 
follows:
    Section 1. To the extent permitted by law, the provisions 
of the Export Administration Act of 1979, as amended, and the 
provisions for administration of the Export Administration Act 
of 1979, as amended, shall be carried out under this order so 
as to continue in full force and effect and amend, as 
necessary, the export control system heretofore maintained by 
the Export Administration Regulations issued under the Export 
Administration Act of 1979, as amended. The delegations of 
authority set forth in Executive Order 12002 of July 7, 1977, 
as amended by Executive Order 12755 of March 12, 1991, and 
Executive Order 13026 of November 15, 1996; Executive Order 
12214 of May 2, 1980; Executive Order 12735 of November 16, 
1990; and Executive Order 12851 of June 11, 1993, shall be 
incorporated in this order and shall apply to the exercise of 
authorities under this order. All actions under this order 
shall be in accordance with Presidential directives relating to 
the export control system heretofore issued and not revoked.
    Sec. 2. All rules and regulations issued or continued in 
effect by the Secretary of Commerce under the authority of the 
Export Administration Act of 1979, as amended, including those 
published in Title 15, Subtitle B, Chapter VII, Subchapter C, 
of the Code of Federal Regulations, Parts 730 through 774, and 
all orders, regulations, licenses, and other forms of 
administrative action issued, taken, or continued in effect 
pursuant thereto, shall, until amended or revoked by the 
Secretary of Commerce, remain in full force and effect as if 
issued or taken pursuant to this order, except that the 
provisions of sections 203(b)(2) and 206 of the Act (50 U.S.C. 
1702(b)(2) and 1705) shall control over any inconsistent 
provisions in the regulations. Nothing in this section shall 
affect the continued applicability of administrative sanctions 
provided for by the regulations described above.
    Sec. 3. Provisions for administration of section 38(e) of 
the Arms Export Control Act (22 U.S.C. 2778(e)) may be made and 
shall continue in full force and effect until amended or 
revoked under the authority of section 203 of the Act (50 
U.S.C. 1702). To the extent permitted by law, this order also 
shall constitute authority for the issuance and continuation in 
full force and effect of all rules and regulations by the 
President or his delegate, and all orders, licenses, and other 
forms of administrative actions issued, taken, or continued in 
effect pursuant thereto, relating to the administration of 
section 38(e).
    Sec. 4. This order shall be effective as of midnight 
between August 20, 2001, and August 21, 2001, eastern daylight 
time

                                                    George W. Bush.
    The White House, August 17, 2001.

                                
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