Export Administration Amendments
PL 93-500 (S.3792), enacted 10/29/1974

n 
1552 
October 29, 1974 
[S. 3792] 
Export Adminis-
tration Amend-
ments of 1974. 
50 u s e app. 
2402 note. 
PUBLIC LAW 93-500-OCT. 29, 1974 
[88 STAT. 
Public Law 93-500 
AN ACT 
To amend and extend the Export Administration Act of 1969. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, 
SHORT 
TITLE 
SECTION 1. This Act may be cited as the "Export Administration 
Amendments of 1974". 
50 u s e app. 
2402. 
50 u s e app. 
2403. 
7 u s e 612c-3. 
Reports. 
Shortages and 
increased prices, 
quarterly report. 
50 u s e app. 
2409. 
Supta. 
SHORT SUPPLY POLICY 
SEC. 2. Section 3(2) (A) of the Export Administration Act of 1969 
is amended by striking out "abnormal". 
MONnORINO AND CONSULTATION 
SEC. 3. (a) Section 4 of the Export Administration Act of 1969 is 
amended by redesignating subsections (c) through (e) thereof as sub-
sections (d) through (f), respectively, and by inserting after subsec-
tion (b) a new subsection (c) as follows: 
"(c)(1) To effectuate the policy set forth in section 3(2) (A) of 
this Act, the Secretary of Commerce shall monitor exports, and con-
tracts for exports, of any article, material, or supply (other than a 
commodity which is subject to the reporting requirements of section 
812 of the Agricultural Act of 1970) when the volume of such exports 
in relation to domestic supply contributes, or may contribute, to an 
increase in domestic prices or a domestic shortage, and such price 
increase or shortage has, or may have, a serious adverse impact on the 
economy or any sector thereof. Information which the Secretary 
requires to be furnished in effecting such monitoring shall be confi-
dential, except as provided in paragraph (2) of this subsection. 
"(2) The results of such monitoring shall, to the extent practicable, 
be aggregated and included in weekly reports setting forth, with 
respect to each article, material, or supply monitored, actual and 
anticipated exports, the destination by country, and the domestic and 
worldwide price, supply, and demand. Such reports may be made 
monthly if the Secretary determines that there is insufficient informa-
tion to justify weekly reports." 
(b) Section 10 of such Act is amended— 
(1) by inserting " (a)" after "SEC. 10."; and 
(2) by adding at the end thereof the following: 
"(b) (1) The quarterly report required for the first quarter of 1975 
and every second report thereafter shall include summaries of the 
information contained in the reports required by section 4(c) (2) of 
this Act, together with an analysis by the Secretary of Commerce of 
(A) the impact on the economy and world trade of shortages or 
increased prices for articles, materials, or supplies subject to monitor-
ing under this Act, (B) the worldwide supply of such articles, 
materials, and supplies, and (C) actions taken by other nations in 
response to such shortages or increased prices. 
"(2) Each such quarterly report shall also contain an analysis by 
the Secretary of Commerce of (A) the impact on the economy and 
world trade of shortages or increased prices for commodities subject 
to the reporting requirements of section 812 of the Agricultural Act 
of 1970, (B) the worldwide supply of such commodities, and (C) 
actions being taken by other nations in response to such shortages or 
increased prices. The Secretary of Agriculture shall fully cooperate 
88 STAT. ] 
PUBLIC LAW 93-500-OCT. 29, 1974 
1553 
with the Secretary of Commerce in providing all information required 
by the Secretary of Commerce in making such analysis.". 
(c) Section 5(a) of such Act is amended— 
(1) by striking out "hereunder" in the first sentence and insert-
ing in lieu thereof the words "or monitored under this Act"; and 
(2) by inserting immediately after such first sentence the fol-
lowing: "Such departments and agencies shall fully cooperate 
in rendering such advice and information.". 
(d) Section 5(a) of such Act is further amended by adding the fol-
lowing at the end thereof: "In addition, the Secretary of Commerce 
shall consult with the Federal Energy Administration to determine 
whether monitoring under section 4 of this Act is warranted with 
respect to exports of facilities, machinery, or equipment normally and 
principally used, or intended to be used, in the production, conversion, 
or transportation of fuels and energy (except nuclear energy), includ-
ing but not limited to, drilling rigs, platforms, and equipment; petro-
leum refineries, natural gas processing, liquefication, and gasification 
plants; facilities for production of synthetic natural gas or synthetic 
crude oil; oil and gas pipelines, pumping stations, and associated 
equipment; and vessels for transporting oil, gas, coal, and other fuels.". 
50 u s e app. 
2404. 
Fuel and 
energy, facilities 
and equipment. 
50 u s e app. 
2403. 
INTERNATIONAL COOPERATION TO SECURE ACCESS TO SUPPLIES 
SEC. 4. (a) Section 2 of the Export Administration Act of 1969 
is amended by adding at the end thereof the following new paragraph: 
"(5) Unreasonable restrictions on access to world supplies can cause 
worldwide political and economic instability, interfere with free inter-
national trade, and retard the growth and development of nations," 
(b) Section 3(3) (A) of such Act is amended by striking out "with 
which the United States has defense treaty commitments". 
(c) Section 3(5) of such Act is amended— 
(1) by striking out the word "and" immediately preceding 
clause (B) ; and 
(2) by striking out the period at the end thereof and inserting 
in lieu thereof a comma and the following: "and (C) to foster 
international cooperation and the development of international 
rules and institutions to assure reasonable access to world 
supplies.". 
H I G H TECHNOLOGY EXPORTS 
SEC. 5. (a) Section 4 of the Export Administration Act of 1969, 
as amended by section 3 of this Act, is amended by adding at the end 
thereof the following new subsection: 
"(g) Any export license application required by the exercise of 
authority under this Act to effectuate the policies of section 3(1) (B) 
or 3(2) (C) shall be approved or disapproved not later than 90 days 
after its submission. If additional time is required, the Secretary of 
Commerce or other official exercising authority under this Act shall 
inform the applicant of the circumstances requiring such additional 
time and give an estimate of when his decision will be made." 
(b) Section 5(c) (1) of such Act is amended by striking out the 
next to the last sentence thereof and inserting in lieu thereof the fol-
lowing: "Each such committee shall consist of rcDresentatives of 
United States industry and Government, including the Departments 
of Commerce, Defense, and State, and, when appropriate, other Gov-
ernment departments and agencies.". 
(c) Section 5 (c) of such Act is amended by adding at the end thereof 
the following new paragraph: 
"(5) To facilitate the work of the technical advisory committees, 
the Secretary of Commerce, in conjunction with other departments 
50 
use app. 
2401. 
50 
use app. 
2402. 
50 
use app. 
2403. 
50 use app. 
2404. 
1554 
PUBLIC LAW 93-500-OCT. 29, 1974 
[88 STAT. 
so u s e app. 
2409 note, 
50 u s e app. 
240.9. 
Ante, p. 1553, 
50 u s e app, 
2404. 
Publication in 
Federal Register, 
50 u s e app. 
2402. 
and agencies participating in the administration of this Act, shall dis-
close to each such committee adequate information, consistent with 
national security, pertaining to the reasons for the export controls 
which are in effect or contemplated for the grouping of articles, rnate-
rials, and supplies with respect to which that committee furnishes 
advice.". 
(d) Not later than one year after the date of enactment of this Act, 
the Secretary of Commerce shall include in a quarterly report under 
section 10 of the Export Administration Act of 1969 an accounting of 
actions taken to expedite the processing of export license applications 
as required under section 4(g) of the Export Administration Act of 
1969. 
OPPORTUNITY TO COMMENT ON LICENSING 
SEC. 6. Section 5(b) of the Export Administration Act of 1969 is 
amended— 
(1) by inserting "(1)" after "(b)"; and 
(2) by adding at the end thereof the following: 
"(2) Upon imposing quantitative restrictions on exports of any 
article, material, or supply to carry out the policy stated in section 
3(2) (A) of this Act, the Secretary of Commerce shall include in his 
notice published in the Federal Register an invitation to all interested 
parties to submit written comments within 15 days from the date 
of publication on the impact of such restrictions and the method of 
licensing used to implement them.". 
TECHNICAL AND CONFORMING CHANGES 
SEC. 7. Section 4(d) of the Export Administration Act of 1969, as 
redesignated by section 3 of this Act, is amended to read as follows: 
"(d) Nothing in this Act or the rules or regulations hereunder shall 
be construed to require authority or permission to export, except where 
required by the President to effect the policies set forth in section 3 of 
this Act". 
HARDSHIP RELIEF 
SEC. 8. The Export Administration Act of 1969 is amended by insert-
ing after section 4 the following new section: 
li 
50 u s e app, 
2403a. 
PROCEDURES FOR HARDSHIP RELIEF FROM EXPORT CONTROLS 
"SEC. 4 A . (a) Any person who, in his domestic manufacturing proc-
ess or other domestic business operation, utilizes a product produced 
abroad in whole or in part from a commodity historically obtained 
from the United States but which has been made subject to export con-
trols, or any person who historically has exported such a commodity, 
may transmit a petition of hardship to the Secretary of Commerce 
requesting an exemption from such controls in order to alleviate any 
unique hardship resulting from the imposition of such controls. A peti-
tion under this section shall be in such form as the Secretary of Com-
merce shall prescribe and shall contain information demonstrating the 
need for the relief requested. 
"(b) Not later than 30 days after receipt of any petition under sub-
section (a), the Secretary of Commerce shall transmit a written deci-
sion to the petitioner granting or denying the requested relief. Such 
decision shall contain a statement setting forth the Secretary's basis for 
the grant or denial. Any exemption granted may be subject to such 
conditions as the Secretary deems appropriate. 
"(c) For purposes of this section, the Secretary's decision with 
respect to the grant or denial of relief from unique hardship resulting 
88 STAT. ] 
PUBLIC LAW 93-500-OCT. 29, 1974 
1555 
directly or indirectly from the imposition of controls shall reflect the 
Secretary's consideration of such factors as— 
"(1) Whether denial would cause a unique hardship to the 
applicant which can be alleviated only by granting an exception 
to the applicable regulations. In determining whether relief shall 
be granted, the Secretary will take into account: 
" (A) ownership of material for which there is no practica-
ble domestic market by virtue of the location or nature of 
the material; 
"(B) potential serious financial loss to the applicant if not 
granted an exception; 
"(C) inability to obtain, except through import, an item 
essential for domestic use which is produced abroad from the 
commodity under control; 
"(D) the extent to which denial would conflict, to the par-
ticular detriment of the applicant, with other national poli-
cies including those reflected in any international agreement 
to which the United States is a party; 
"(E) possible adverse, effects on the economy (including 
unemployment) in any locality or region of the United 
States; and 
"(F) other relevant factors, including the applicant's lack 
of an exporting history during any base period that may be 
established with respect to export quotas for the particular 
commodity. 
"(2) The effect a finding in favor of the applicant would have 
on attainment of the basic objectives of the short supply control 
program. 
In all cases, the desire to sell at higher prices and thereby obtain 
greater profits will not be considered as evidence of a unique hardship, 
nor will circumstances where the hardship is due to imprudent acts or 
failure to act on the part of the appellant.'. 
INTERAGENCY REVIEW 
SEC. 9. Section 4 of the Export Administration Act of 1969, as 
amended by sections 3 and 5 of this Act, is amended by adding at the 
end thereof the following new subsection: 
"(h)(1) The Congress finds that the defense posture of the United 
States may be seriously compromised if the Nation's goods and tech-
nology are exported to a controlled country without an adequate and 
knowledgeable assessment being made to determine whether export 
of such goods and technology will significantly increase the military 
capability of such country. It is the purpose of this subsection to pro- to^pr'e°Td^n"'^^"°" 
vide for such an assessment and to authorize the Secretary of Defense 
to review any proposed export of goods or technology to any such 
country and, whenever he determines that the export of such goods 
or technology will significantly increase the military capability of 
such country, to recommend to the President that such export be 
disapproved. 
"(2) Notwithstanding any other provision of law, the Secretary of 
Defense shall determine, in consultation with the export control 
office to which licensing requests are made, the types and categories of 
transactions which should be reviewed by him to carry out the pur-
pose of this subsection. Whenever a license or other authority is 
requested for the export of such goods or technology to any controlled 
country, the appropriate export control office or agency to whom such 
request is made shall notify the Secretary of Defense of such request, 
and such office may not issue any license or other authority pursuant 
to such request prior to the expiration of the period within which the 
1556 
PUBLIC LAW 93-500-OCT. 29, 1974 
[88 STAT. 
Presidential 
disapproval. 
Presidential 
statement to 
Congress. 
Definitions. 
50 use app. 
2402. 
S
O use app. 
2402. 
President may disapprove such export. The Secretary of Defense shall 
carefully consider all notifications submitted to him pursuant to this 
subsection and, not later than 30 days after notification of the request 
shall— 
"(A) recommend to the President that he disapprove any 
request for the export of any goods or technology to any con-
trolled country if he determines that the export of such goods or 
technology will significantly increase the military capability of 
such country; 
"(B) notify such office or agency that he will interpose no 
objection if appropriate conditions designed to achieve the pur-
poses of this Act are imposed; or 
"(C) indicate that he does not intend to interpose an objection 
to the export of such goods or technology. 
If the President notifies such office or agency, within 30 days after 
receiving a recommendation from the Secretary, that he disapproves 
such export, no license or other authorization may be issued for the 
export of such goods or technology to such country. 
"(3) Whenever the President exercises his authority under this 
subsection to modify or overrule a recommendation made by the Sec-
retary of Defense pursuant to this section, the President shall submit 
to the Congress a statement indicating his decision together with the 
recommendation of the Secretary of Defense. 
" (4) As used in this subsection— 
" (A) the term 'goods or technology' means— 
"(i) machmery, equipment, capital goods, or computer 
software; or 
"(ii) any license or other arrangement for the use of any 
patent, trade secret, design, or plan with respect to any item 
described in clause (i); 
"(B) the term 'export control office' means any office or agency 
of the United States Government whose approval or permission is 
required pursuant to existing law for the export of goods or tech-
nology; and 
"(C) the term 'controlled country' means any Communist coun-
try as defined under section 620(f) of the Foreign Assistance Act 
of 1961." 
BXPOET rEE8 AND LICENSES 
SEC. 10. Section 4 of the Export Administration Act of 1969, as 
amended by sections 3, 5, and 9 of this Act, is amended by adding at 
the end thereof the following: 
"(i) In imposing export controls to effectuate the policy stated in 
section 3(2) (A) of this Act, the President's authority shall include 
but not be limited to, the imposition of export license fees." 
ECONOMIC POLICY ACTIONS 
SEC. 11. Section 3 of the Export Administration Act of 1969 is 
amended by adding at the end thereof the following new paragraph: 
"(7) It is the policy of the United States to use export controls, 
including license fees, to secure the removal by foreign countries of 
restrictions on access to supplies where such restrictions have or may 
have a serious domestic inflationary impact, have caused or may cause 
a serious domestic shortage, or have been imposed for purposes of 
influencing the foreign policy of the United States. In effecting this 
policy, the President shall make every reasonable effort to secure the 
removal or reduction of such restrictions, policies, or actions through 
international cooperation and agreement before resorting to the impo-
sition of controls on the export of materials from the United States: 
88 STAT. ] 
PUBLIC LAW 93-501-OCT. 29, 1974 
1557 
Provided, That no action taken in fulfillment of the policy set forth ^^^^'^•^^^' 
in this paragraph shall apply to the export of medicine or medical 
supplies." 
ALLOCATION OP LICENSES 
SEC. 12. Section 4(b) (1) of the Export Administration Act of 1969 J^ use app. 
is amended by adding at the end thereof the following: "In curtailing 
the exportation of any articles, materials, or supplies to effectuate the 
policy set forth in section 3 (2) (A) of this Act, the President is author- 
so use app. 
ized and directed to allocate a portion of export, licenses on the basis ^'*°^' 
of factors other than a prior history of exportation." 
EXPIRATION 
DATE 
SEC. 13. Section 14 of the Export Administration Act of 1969 is 
so use app. 
amended by striking "September 30,1974" and inserting in lieu thereof 
"September 30,1976". 
PRESIDENTIAL 
REVIEW 
SEC. 14. The President is directed to revdew all laws, regulations 
^2 use 2153 
issued thereunder by the Atomic Energy Commission, the Department "°*^* 
of Commerce, and other (xovernment agencies, governing the export 
and re-export of materials, supplies, articles, technical data or other 
information relating to the design, fabrication, development, supply, 
repair or replacement of any nuclear facility or any part thereof, and 
to report within six months to the Congress on the adequacy of such ^ Report to 
regulations to prevent the proliferation of nuclear capability for non- 
°"^'^^^^-
peaceful purposes. The President is also directed to review domestic 
and international nuclear safeguards and to report within six months 
to the Congress on the adequacy of such safeguards to prevent the pro-
liferation, diversion or theft of all such nuclear materials and on efforts 
by the United States and other countries to strengthen international 
nuclear safeguards in anticipation of the Eeview Conference scheduled 
to be held in February 1975 pursuant to Article VIII, section 3 of the 
Treaty on the Non-Proliferation of Nuclear Weapons." 
^^ UST 483. 
Approved October 29, 1974. 
Public Law 93-501 
A N A C T 
October 29, 1974 
To authorize the regulation of interest rates payable on obligations issued by 
[s. 3838] 
affiliates of certain depository institutions, and for other purposes. 
Be it enacted hy the Seriate and House of Representatives 
of the 
Vnited States of America in Congress assembled. 
^^^^ obligations. 
•
^ 
Issuance and 
TITLE I—KEGULATION OF INTEREST RATES ON 
CERTAIN OBLIGATIONS 
SEC. 101. Section 19(a) of the Federal Reserve Act (12 U.S.C. 461) 
is amended by inserting "and, regardless of the use of the proceeds," 
immediately before "shall be deemed a deposit". 
(b) The amendment made by subsection (a) shall not apply to any 
bank holding company which has filed prior to the date of enactment 
of this Act an irrevocable declaration with the Board of Governors 
of the Federal Reserve System to divest itself of all of its banks 
under section 4 of the Bank Holding Company Act, or to any debt 
obligation which is an exempted security under section 3(a)(3) of 
the Securities Act of 1933. 
38-194 O - 76 -16 Pt. 2 
sale, regulation. 
12 
note 
12 
IS 
use 
use 
use 
461 
1843. 
77c.