February 1, 2000

STATEMENT BY THE PRESIDENT

                              THE WHITE HOUSE

                       Office of the Press Secretary

_______________________________________________________________
For Immediate Release                               February 1, 2000


                        STATEMENT BY THE PRESIDENT


     In July 1999, I announced reforms to the Administration?s export
controls on high-performance computers (HPC) and semiconductors that were
intended to strengthen America?s high-tech competitiveness and maintain
controls necessary to protect our national security.  At that time, I
directed my national security and economic advisors to review HPC
technology advancements every six months, and to provide me with
recommendations to adjust our HPC export controls if warranted.

     Today, based on the recommendations I have received from agencies as a
result of their review, I am announcing additional reforms to U.S. export
controls on HPCs.  This decision reflects my commitment to a control system
that will enhance U.S. national security by implementing controls on
computer exports that are effective and enforceable.

     I have decided to raise the licensing threshold for HPC exports to
Tier 2 countries.  I have decided also to raise the licensing threshold for
Tier 3 countries and the threshold above which proposed exports to Tier 3
countries must be notified to U.S. government export control agencies, and
to adjust the Tier 3 country grouping.  The Administration will continue
its policy of maintaining a lower threshold for military end-users than
civilian end-users.  Export control agencies will examine the benefits of
maintaining a civil/military differential in the course of their next
review of HPC levels.  Due to the ever-increasing rate of technological
change, agencies will review control levels by April 2000 to determine if
further changes are warranted.

     The changes to the pre-export notification threshold and the Tier 3
country group require Congressional review periods of six and four months,
respectively, before they can go into effect.  I will continue to work with
the Congress to pass legislation that would reduce these periods to one
month, so that we can keep up with the rapid pace of technological change.
I also will work with Congress to explore longer-term solutions to how we
control exports of items like computers and microprocessors when they
become widely available commodities.


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