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74–231PS

2001

TO EXTEND THE EXPORT ADMINISTRATION ACT UNTIL NOVEMBER 20, 2001;

MARKUP BEFORE THE COMMITTEE ON INTERNATIONAL RELATIONS HOUSE OF REPRESENTATIVES

ONE HUNDRED SEVENTH CONGRESS - FIRST SESSION

H.R. 2602 and H. Con. Res. 178

JULY 25, 2001

Serial No. 107–32

Printed for the use of the Committee on International Relations

Available via the World Wide Web: http://www.house.gov/international—relations

For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001

COMMITTEE ON INTERNATIONAL RELATIONS

HENRY J. HYDE, Illinois, Chairman

BENJAMIN A. GILMAN, New York

JAMES A. LEACH, Iowa

DOUG BEREUTER, Nebraska

CHRISTOPHER H. SMITH, New Jersey

DAN BURTON, Indiana

ELTON GALLEGLY, California

ILEANA ROS-LEHTINEN, Florida

CASS BALLENGER, North Carolina

DANA ROHRABACHER, California

EDWARD R. ROYCE, California

PETER T. KING, New York

STEVE CHABOT, Ohio

AMO HOUGHTON, New York

JOHN M. McHUGH, New York

RICHARD BURR, North Carolina

JOHN COOKSEY, Louisiana

THOMAS G. TANCREDO, Colorado

RON PAUL, Texas

NICK SMITH, Michigan

JOSEPH R. PITTS, Pennsylvania

DARRELL E. ISSA, California

ERIC CANTOR, Virginia

JEFF FLAKE, Arizona

BRIAN D. KERNS, Indiana

JO ANN DAVIS, Virginia

TOM LANTOS, California

HOWARD L. BERMAN, California

GARY L. ACKERMAN, New York

ENI F.H. FALEOMAVAEGA, American Samoa

DONALD M. PAYNE, New Jersey

ROBERT MENENDEZ, New Jersey

SHERROD BROWN, Ohio

CYNTHIA A. McKINNEY, Georgia

EARL F. HILLIARD, Alabama

BRAD SHERMAN, California

ROBERT WEXLER, Florida

JIM DAVIS, Florida

ELIOT L. ENGEL, New York

WILLIAM D. DELAHUNT, Massachusetts

GREGORY W. MEEKS, New York

BARBARA LEE, California

JOSEPH CROWLEY, New York

JOSEPH M. HOEFFEL, Pennsylvania

EARL BLUMENAUER, Oregon

SHELLEY BERKLEY, Nevada

GRACE NAPOLITANO, California

ADAM B. SCHIFF, California

DIANE E. WATSON, California

THOMAS E. MOONEY, SR., Staff Director/General Counsel

ROBERT R. KING, Democratic Staff Director

FRANK RECORD, Senior Professional Staff Member

DANIEL FREEMAN, Counsel/Parliamentarian

MARILYN C. OWEN, Staff Associate

C O N T E N T S

Markup of H.R. 2602, To extend the Export Administration Act until November 20, 2001

Text of H.R. 2602

LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARING

The Honorable Henry J. Hyde, a Representative in Congress from the State of Illinois, and Chairman, Committee on International Relations:

Prepared statement concerning H.R. 2602

The Honorable Robert Menendez, a Representative in Congress from the State of New Jersey: Prepared statement concerning H.R. 2602

The Honorable Jeff Flake, a Representative in Congress from the State of Arizona: Prepared statement concerning H.R. 2602

The Honorable Henry J. Hyde: Prepared statement concerning H. Con. Res. 178

APPENDIX

The Honorable Benjamin A. Gilman, a Representative in Congress from the State of New York: Prepared statement concerning H. Con. Res.

178

TO EXTEND THE EXPORT ADMINISTRATION ACT UNTIL NOVEMBER 20, 2001; WEDNESDAY, JULY 25, 2001

House of Representatives,

Committee on International Relations,

Washington, DC.

The Committee met, pursuant to call, at 10:20 a.m. in Room 2172, Rayburn House Office Building, Hon. Henry J. Hyde (Chairman of the Committee) presiding.

Chairman HYDE. The Committee will come to order.

Pursuant to notice, I now call up the bill H.R. 2602 for purposes of markup and move its favorable recommendation to the House. Without objection, the bill will be considered as read and open for amendment at any point.

[The bill, H.R. 2602, follows:]

74231a.eps

Chairman HYDE. The Chair yields himself 5 minutes for the purpose of presenting a statement.

Today the Committee will consider a measure I introduced yesterday, together with the Ranking Member, Mr. Tom Lantos, to extend the Export Administration Act of 1979 for 3 months, through November 20 of this year.

The Export Administration Act was extended for 1 year in the 106th Congress, through August 20 of this year, and it is now clear that neither the House nor the Senate will be able to consider a comprehensive rewrite of this 21-year-old statute by that date.

The prompt enactment of this stop-gap authorization will, however, enable the Bureau of Export Administration of the Department of Commerce to continue to administer and enforce our export control licensing system and should give the Congress sufficient time to consider a full rewrite of this measure.

As many of my colleagues are aware, the Export Administration Act of 2001, S. 149, is scheduled for floor action in the Senate in the near future, and it is our intention in this Committee to consider this measure next Wednesday, August 1st.

It is my intention, due to the fact that Mr. Lantos and I have an important meeting this morning, to limit opening statements on this matter to Mr. Lantos and myself. Mr. Menendez has made a request, and assuming that he can be brief, we will yield to him to make a statement. But any other Member who wishes to make a statement will be, without objection, included in the record.

Now I turn to Mr. Lantos, the Ranking Member.

[The prepared statement of Mr. Hyde follows:]

PREPARED STATEMENT OF THE HONORABLE HENRY J. HYDE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF ILLINOIS, AND CHAIRMAN, COMMITTEE ON INTERNATIONAL RELATIONS

H.R. 2602

Today the Committee will consider a measure I introduced yesterday, together with the Ranking Member, to extend the Export Administration Act of 1979 for three months, through November 20 of this year.

The Export Administration Act was extended for one year in the 106th Congress, through August 20 of this year, and it is now clear that neither the House nor the Senate will be able to consider a comprehensive rewrite of this 21-year-old statute by this date.

The prompt enactment of this stop gap authorization will, however, enable the Bureau of Export Administration of the Department of Commerce to continue to administer and enforce our export control licensing system and should give the Congress sufficient time to consider a full rewrite of this measure.

I will now turn to the Ranking Member, Mr. Lantos, for any remarks he might want to make.

Mr. LANTOS. Thank you very much, Mr. Chairman. I want to commend you for your leadership on extending the Export Administration Act. The current act will expire on August 20th. On that day, our ability to implement United States dual-use export controls will terminate.

Now, the Senate has not acted on its legislation for new export authorization, and it is highly unlikely that it will do so before September. We are slated to mark up in this Committee a version of the Senate bill next week. But it will not go through the Armed Services Committee and it will not reach the floor of the House prior to September.

The authority to maintain export controls can be continued under an executive order, as was done from 1995 to last year, but the lack of statutory authority will nevertheless compromise the Administration's ability to fully implement controls on militarily useful goods and technology. Clearly, more time is needed to enact a new Export Administration Act. The bill that Chairman Hyde and I are introducing will accomplish this by extending statutory authority of the Export Administration Act of 1979 until the end of November 2001.

This is the only responsible course of action given the circumstances. I urge my colleagues on the Committee and in both the House and the Senate to give their support to the extension that Chairman Hyde and I are introducing.

And before yielding the floor, Mr. Chairman, I want to extend my personal apology to our distinguished guests. Chairman Hyde and I are slated to go to the White House in the next few minutes to meet with the President on his recent trip to Europe, which will prevent us from attending the balance of this session. I yield my time.

Chairman HYDE. Mr. Menendez.

Mr. MENENDEZ. Thank you, Mr. Chairman. Mr. Chairman, the week before last, my staff was approached by yours about cosponsoring a bipartisan approach on export controls, and I was glad to see that finally we were on the way to doing the people's work together on this absolutely critical issue. But after a further review, the Chairman earnestly let it be known that philosophically he was not in agreement on our approach, and he honorably withdrew his offer and put a counteroffer on the table, which we seriously considered but ultimately, equally, did not accept. I appreciated the way that you professionally and courteously approached us on the issue, and I believe we did the same with your counteroffer.

We reached out again to the other side of the aisle to gather a solid bipartisan group to introduce what I believe is a very well-crafted piece of legislation, S. 149, the Export Administration Act, to which I alluded in our last hearing. Ninety senators supported it, attesting to its strong bipartisan appeal.

We reached out to the Republican leadership but did not get the courtesy of a response. We reached out to colleagues on this Committee, and we are very glad indeed to have received a positive response from Messrs. Houghton and Flake, and on the other side, Mr. Blumenauer.

So it seemed to me that bipartisanship had won the day, and last Thursday night we introduced H.R. 2557, the House version of the Export Administration Act. But before I could get up the next morning, we read the morning papers to be informed that last Friday the Majority leadership, and Mr. Dreier specifically, reintroduced our bill verbatim. It is identical in all respects but one. It cuts us out.

Mr. Chairman, when the rubber hit the road, a truly bipartisan effort was unceremoniously and not very graciously squashed by the leadership. That is a shame, because I do not believe that this bill will ultimately pass with Majority votes alone.

I appreciate the way in which the Chairman has handled the issue, but I do not appreciate the manner in which those who call for bipartisanship and those of us who seek to engage in it are subsequently treated on a matter that will not pass simply with Majority votes. I thank the Chair for the opportunity, and I ask that my full statement be entered in the record.

Chairman HYDE. Without objection, so ordered.

[The prepared statement of Mr. Menendez follows:]

PREPARED STATEMENT OF THE HONORABLE ROBERT MENENDEZ, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW JERSEY

Mr. Chairman: The week before last, my staff was approached by your staff about cosponsoring a bipartisan approach on export controls. I was glad to see that finally we were on the way to doing the people's work together on this absolutely critical issue.

But after further review, the Chairman earnestly let it be known that philosophically he was not in agreement with our approach, and he honorably withdrew his offer and put on the table a counteroffer which we conditionally accepted, but subject to review as well.

We gave serious consideration to inclusion of an amendment related to North Korea in return for a mark-up just a couple of days before recess. Although seemingly attractive, after further review, we determined that we did not agree with this approach and withdrew as well.

Mr. Chairman, I appreciated the way you professionally approached us and withdrew your support. I did the same with your counteroffer.

We reached out again to the other side of the aisle to gather a solid bipartisan group to introduce what I believe is a very well-crafted piece of legislation, S.149, the Export Administration Act of 2001, to which I alluded in our last hearing. That 90 Senators support it attests to its strong bipartisan appeal.

We reached out to our colleagues on this committee and were very glad indeed to receive a positive response from Messrs. Houghton and Flake, and on our side, Mr. Blumenauer. Bipartisanship, it seemed, had won the day. Together, last Thursday night we introduced HR 2557, the House version of the Export Administration Act of 2001.

And then came a sudden change. We reached out to the Republican leadership, but did not get the courtesy of a response. Before I could read the morning papers, staff informed me last Friday that the Majority leadership—Mr. Dreier specifically—re-introduced our bill verbatim. It is identical in all respects but one: it cut us out.

Mr. Chairman, when the rubber hit the road, a truly bipartisan effort was unceremoniously—and not very graciously—squashed by your leadership. That is a shame, because I do not believe this bill will pass with Majority votes alone.

And what about the famous rhetorically bipartisan Administration? My understanding is that they are fully behind this legislative railroading. In fact, we were advised that only a Majority-sponsored bill had any hopes of passage.

Mr. Chairman, notwithstanding your own candor, this is a direct slap in the face. It puts the lie to the Majority leadership's and the Administration's claims of a bipartisan spirit in moving forward on this bill. This is just not the way to do business. But it is especially upsetting because it so glaringly contradicts so many public statements in support of bipartisan efforts.

In fact, I wonder if there is an Administration witness here that can honestly tell us right here and right now what happened. Do they not believe in practicing what they preach in terms of bipartisanship. I would appreciate an answer, Mr. Chairman.

As I have said, this is a critical issue. I may have differences with you, Mr. Chairman, but I believe we have been honest with each other. If we want to move forward together on this, I want to suggest that some adjustments need to be made at the White House, whose bipartisanship I praised in my last statement, and in your leadership. I am not confident, Mr. Chairman.

Chairman HYDE. I would like to say to the gentleman that I am not aware and not privy to the machinations that apparently are machinating, and I welcome the gentleman——

Mr. LANTOS. Would you spell that, Mr. Chairman?

Chairman HYDE. I can hardly pronounce it—Mr. Flake of Arizona for a brief statement.

Mr. FLAKE. I will insert a statement for the record, but I just want to echo concerns that this does expire next month. We could be actually debating legislation to improve it rather than simply extend it, and I would certainly prefer that but hope that we move quickly on it in the future.

Thank you.

[The prepared statement of Mr. Flake follows:]

PREPARED STATEMENT OF THE HONORABLE JEFF FLAKE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF ARIZONA

While Chairman Hyde should be commended for his diligence in attempting to ensure that the Export Administration Act does not expire next month on August 20, I would like to draw the Committee's attention to legislation I cosponsored last week with some of my colleagues on the Committee.

This legislation, the Export Administration Act, would not merely extend the current existing export control regime, but improve upon it in areas that are of concern not only for industry, but for those who are concerned with our national security. The EAA adopts the recommendations of defense and national security experts by establishing a smarter, more effective export control framework tailored to fit today's world, rather than the world of 1979. Both Vice President Cheney and National Security Advisor Condoleezza Rice have indicated their full and enthusiastic support for the bill.

In areas such as end use and user controls, the EAA goes above and beyond the current law, and codifies current regulation. The EAA also establishes tough new criminal and civil penalties for export control violations, which go significantly further than the slap on the wrist violators currently face.

It is not likely that the Senate will also extend current law for three months. Given this improbability, we are risking expiration of current law. Should that occur, the International Economic Emergency Powers Act (IEEPA) will take effect, and we will see even lower penalties for offenders, and also court challenges to the authority of the Bureau of Export Administration to implement the EAA of 1979 under IEEPA. The longer the Congress delays, the more likely it is that a court would rule that BXA lacks the authority to implement the EAA of 1979 under IEEPA.

I fear that another delay in reauthorizing the EAA will only encourage inactivity on this issue in the Congress. It is time to act responsibly and bring our export control system into the 21st century.

Chairman HYDE. Very well. I understand there are no amendments. Therefore, the question occurs on the motion to report the bill, H.R. 2602, favorably.

All in favor, say aye.

Opposed, no.

The ayes have it and the motion to report favorably is adopted. Without objection, the Chairman is authorized to move to go to conference, pursuant to House Rule 22. Without objection, the staff is directed to make any technical and conforming changes.