Presidential Documents

Federal Register / Vol. 65, No. 235 / Wednesday, December 6, 2000 / Presidential Documents 76558

Executive Order 13177 of December 4, 2000

National Commission on the Use of Offsets in Defense Trade

and President’s Council on the Use of Offsets in Commercial

Trade

By the authority vested in the President by the Constitution and the laws

of the United States of America, including Public Law 106-113 and the

Federal Advisory Committee Act, as amended (5 U.S.C. App. 2), and in

order to implement section 1247 of Public Law 106-113 (113 Stat. 1501A502) and to create a parallel ‘‘President’s Council on the Use of Offsets

in Commercial Trade,’’ it is hereby ordered as follows:

Section 1. Membership. Pursuant to Public Law 106-113, the ‘‘National Commission on the Use of Offsets in Defense Trade’’ (Commission) comprises

11 members appointed by the President with the concurrence of the Majority

and Minority Leaders of the Senate and the Speaker and the Minority

Leader of the House of Representatives. The Commission membership includes: (a) representatives from the private sector, including one each from

(i) a labor organization, (ii) a United States defense manufacturing company

dependent on foreign sales, (iii) a United States company dependent on

foreign sales that is not a defense manufacturer, and (iv) a United States

company that specializes in international investment; (b) two members from

academia with widely recognized expertise in international economics; and

(c) five members from the executive branch, including a member from the:

(i) Office of Management and Budget, (ii) Department of Commerce, (iii)

Department of Defense, (iv) Department of State, and (v) Department of

Labor. The member from the Office of Management and Budget will serve

as Chairperson of the Commission and will appoint, and fix the compensation

of, the Executive Director of the Commission.

Sec. 2. Duties. The Commission will be responsible for reviewing and reporting on: (a) current practices by foreign governments in requiring offsets

in purchasing agreements and the extent and nature of offsets offered by

United States and foreign defense industry contractors; (b) the impact of

the use of offsets on defense subcontractors and nondefense industrial sectors

affected by indirect offsets; and (c) the role of offsets, both direct and

indirect, on domestic industry stability, United States trade competitiveness,

and national security.

Sec. 3. Commission Report. Not later than 12 months after the Commission

is established, it will report to the appropriate congressional committees.

In addition to the items described in section 2 of this order, the report

will include: (a) an analysis of (i) the collateral impact of offsets on industry

sectors that may be different than those of the contractor paying offsets,

including estimates of contracts and jobs lost as well as an assessment

of damage to industrial sectors; (ii) the role of offsets with respect to competitiveness of the United States defense industry in international trade and

the potential damage to the ability of United States contractors to compete

if offsets were prohibited or limited; and (iii) the impact on United States

national security, and upon United States nonproliferation objectives, of

the use of co-production, subcontracting, and technology transfer with foreign

governments or companies, that results from fulfilling offset requirements,

with particular emphasis on the question of dependency upon foreign nations

for the supply of critical components or technology; (b) proposals for unilateral, bilateral, or multilateral measures aimed at reducing any detrimental

Federal Register / Vol. 65, No. 235 / Wednesday, December 6, 2000 / Presidential Documents 76559

effects of offsets; and (c) an identification of the appropriate executive branch

agencies to be responsible for monitoring the use of offsets in international

defense trade.

Sec. 4. Administration, Compensation, and Termination. (a) The Department

of Defense will provide administrative support and funding for the Commission and Federal Government employees may be detailed to the Commission

without reimbursement.

(b) Members of the Commission who are not officers or employees of

the Federal Government will be compensated at a rate of basic pay prescribed

for level IV of the Executive Schedule under section 5315 of title 5, United

States Code, for each day (including travel time) during which such member

is engaged in performance of the duties of the Commission. Members of

the Commission who are officers or employees of the Federal Government

will serve without compensation in addition to that received for their services

as officers or employees of the Federal Government.

(c) Members of the Commission will be allowed travel expenses, including

per diem in lieu of subsistence, under subchapter 1 of chapter 57 of title

5, United States Code, while on business in the performance of services

for the Commission.

(d) The Commission will terminate 30 days after transmitting the report

required in section 1248(b) of Public Law 106-113 (113 Stat. 1501A-505).

Sec. 5. Establishment and Membership. (a) There is established, pursuant

to the Federal Advisory Committee Act, as amended (5 U.S.C. App.), the

‘‘President’s Council on the Use of Offsets in Commercial Trade’’ (Council).

(b) The Council shall be composed of the appointed members of the

Commission or their designees.

Sec. 6. Duties and Report of the Council. The Council shall review and

report to the President, through the Director of the Office of Management

and Budget, on the use of offsets in commercial trade, including their

impact on the United States defense and commercial industrial base. The

Council shall consult with and, as appropriate, provide information to the

Commission.

Sec. 7. Administration. (a) The Department of Defense shall provide administrative support and funding for the Council.

(b) The heads of executive departments and agencies shall, to the extent

permitted by law, provide to the Council such information as it may require

for the purpose of carrying out its duties.

(c) Members of the Council shall serve without compensation.

Sec. 8. General. (a) Notwithstanding any other Executive Order, the functions

of the President under the Federal Advisory Committee Act, as amended,

except that of reporting to the Congress, that are applicable to the Council,

shall be performed by the Department of Defense in accordance with guidelines that have been issued by the Administrator of General Services.

(b) The Council shall terminate on the date of the transmission of the

report required by section 1248(b) of Public Law 106-113 (113 Stat. 1501A505).

THE WHITE HOUSE,

December 4, 2000.

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[FR Doc. 00–31252

Filed 12–5–00; 8:45 am]

Billing code 3195–01–P