THE WHITE HOUSE Office of the Press Secretary ______________________________________________________________ For Immediate Release February 1, 2000 PRESS BRIEFING BY JAKE SIEWERT AND DAVID LEAVY The Briefing Room 1:10 P.M. EST MR. SIEWERT: I think we will be joined shortly by the NSC representative, so if you could hold your questions on that. I have a couple of announcements. The President will travel to Chappaqua Saturday. We will be taking a press pool on that. We'll also have a sign-up posted. If there's enough interest, we will have a press plane that goes up on Sunday and returns Sunday. The pool will spend Saturday and Sunday night in the vicinity of Chappaqua with the President. He will return to the White House on Monday. The President will also have an announcement later today easing computer export controls. This is a pledge that he's made to the industry which has been at the forefront of economic growth and innovation in this country -- that we will from time to time review the rules governing export licensing of high-performance computers, and we'll have an announcement later today making some adjustments to that to reflect the realities of today's marketplace. Q In what form is the announcement? MR. SIEWERT: We'll do that on paper. We've pledged -- as you know, the President met with some of the CEOs from the high-tech companies last month and urged them to press Congress on tightening up the waiting period that we -- we now have to wait six months before these kinds of controls go into effect. The President thinks that's too long for today's marketplace. We hope to see some action on a bipartisan basis on a bill that will do that, that will tighten that up to one month that we've proposed. But in the meantime, we're taking this executive action to make it easier for American high-performance computer companies to ship their exports overseas while we maintain the controls that are necessary to protect our national security. We'll have that paper for you very shortly. ................ Q Jake, regarding China, one of the reasons for the six-month waiting period on export controls was fear of China taking some of our technology, particularly in supercomputers, going back some time. Is the feeling that that has changed somewhat now, that a threat from the Chinese is not as great, and we simply have to be in that market -- not just China, but also other markets? And what can the President do, since the six-month waiting period is by law? Are you talking about some sort of executive order today? MR. SIEWERT: No. The executive order that we're putting in place eases licensing requirements today. What we're trying to do -- we can't change the waiting period; that is part of law. But we can -- what the law does now is allow the President to change the type of computer that's being exported, but we have to wait six months for those regulations to go into effect. And that's something the computer industry says is just too long a period given how quickly the technology changes, how quickly the technology moves. What the President wants to do is shorten that time period, by law, to one month, so that we don't need to spend every six months going back to the drawing board and trying to figure out what kind of computers are widely available in the marketplace today and whether we need to take another look at our regulations. A short waiting period would give computer industry a better chance to figure out its product lines and what they can export, its marketing schemes for exports overseas. On China, we're still maintaining a lot of the security controls that are in place under the current law. We have loosened some requirements to reflect the realities of today's marketplace, but we still have tier one, tier two, and tier three countries, so that we cannot sell -- the computer industry cannot sell the same computers that it sells to an ally in Europe that it can to places like Pakistan or China. Q Isn't the real problem that you have to define, change the definition of what a supercomputer is, because as you say, the speed of these chips just changes expedientially these days? MR. SIEWERT: We've committed to a six-month review. We'd like to change the law so that we can have more rational review periods. But the President will order today that we have another review, beginning in April, and we may have a decision after that because the technology is moving so quickly. But we've been consulting with the Pentagon and with the NSC about how to keep in place some of the security controls that the law envisions, and ensure that we do everything we can to make sure that high-performance computers don't get into the hands of the wrong users. Q Can you talk about the realities of the marketplace, where we don't sell the computers somebody else will? MR. SIEWERT: Well, also the realities of the fact that the marketplace -- America has some of the best technology in the world, and a lot of people don't have any recourse but to come to the United States, but to ensure that in a very open global economy that our rules on licensing are more or less reflecting what's going on in the actual industry today. ........... Q -- domestic, but the computer export controls would be reviewed on a regular basis, is what you're saying, that we want a shorter waiting period between -- MR. SIEWERT: Well, there are two things. The President has committed -- we've relaxed or eased the computer controls already from time to time. What the President is committed to do is to review them every six months, and we'll continue to do that. He's ordered another review to being in April so that we can have a decision in time for the computer industries to develop its new product lines and to developing some export plans for those. At the same time, the current law calls for the export controls for a waiting period of six months, so that when we announce this proposal today, it essentially goes into effect six months from now. What we would like to see is legislation that shortens that waiting period, so that when we announce a new regulation to actually ease controls and make it easier for some of our high performance computer companies to export those, that it only takes one month for those rules to actually go into effect, because the marketplace is changing very quickly, technology is moving very quickly. We want to make sure that when we make decisions, they move as quickly as the market. Q In terms of Chappaqua -- Q -- these controls -- MR. SIEWERT: These controls will take the full six months to go into effect. We think that, actually having consulted with the computer industry, that that gives them enough time to develop new products, to develop a marketing plan for those. What we would like to see is legislation from Congress that will shorten future waiting periods to one month. ......... END 1:50 P.M. EST