the agencies primarily involved in the export license process. Neutrality is an important aspect of the panel’s processes, and having an independent physical location within an agency already set up for appellate proceedings will be a very substantial advantage for the panel in establishing its bona fides for all participants in the export control process.


The President should direct that executive authorities under the Arms Export Control Act and the Export Administration Act be administered to assure the scientific and technological competitiveness of the United States, which is a prerequisite for both national security and economic prosperity.

  1. Maintain the Fundamental Research Exemption as provided by National Security Decision Directive 189 that protects unclassified research, and ensure that it is properly implemented.

  2. Create an economic competitiveness exemption that eliminates export controls on dual-use technologies where they, or their functional equivalents, are available without restriction in open markets outside the United States.

The Fundamental Research Exemption

The President should reaffirm, in its current form, the Fundamental Research Exemption set out in National Security Decision Directive 189. This policy statement has worked well since its inception in 1985.

The policy statement defines fundamental research broadly in these terms:

“Fundamental research” means basic and applied research in science and engineering, the results of which ordinarily are published and shared broadly within the scientific community, as distinguished from proprietary research and from industrial development, design, production, and product utilization, the results of which ordinarily are restricted for proprietary or national security reasons.6

This policy is intended to provide a bright line: if fundamental research is not classified through application of the normal classifica-


See footnote 44, Chapter 2, p. 48.

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