Tighter controls would penalize U.S. firms for winning the high performance computer competition. Our firms' strength has driven most producers from all but the low end of the market and discouraged others from entering. Export controls, like any government intervention, can, however, reverse that situation. Controls at too low a level act as a subsidy for our foreign competitors, damage our national security, and cost the American economy exports and jobs. Maintaining our status as world leader in information technology and computer manufacturing is critical to both our economic growth and our national security.
Exports account for roughly half the revenues of U.S. computer companies.
Ill-advised export controls would put this vital sector at risk and at the same time compromise our security by making it harder for the Pentagon to obtain the cutting edge technology it needs. Events since 1995 have confirmed we are on the right course, and I hope the Congress will support the Administration as it moves into a new review of control parameters.