CoCom. The Swiss talked at length about their neutral status and, while acknowledging they could not join CoCom, pointed out that they nevertheless maintained strict export controls. For example, the Swiss government processed 20,000 license requests in 1989, fewer than 2,000 of which involved trade with either the Soviet Union or East European countries. The 2,000 cases involved legitimate end users, and "Swiss blues"* were provided to any government that requested them. The United States is the single largest requester of "Swiss blues," but Germany, Great Britain, and France also routinely make such requests.

The Swiss acknowledged that in the past some diversions through Switzerland had occurred. Since then, however, controls had been tightened and enforcement activities had been strengthened. The government was convinced that the chance for diversion of Swiss technology was fairly remote.

In regard to proliferation controls, the Swiss government is an active participant in the Australia Group and would support any multilateral effort to control chemical weapons. Although Switzerland is not a major producer of chemical processing equipment, the government examines all license applications for exports to Iran, Iraq, Libya, and Syria to check for possible diversions of dual use equipment.

A general discussion was also held on the dangers presented by the proliferation of ballistic missile technology. When informed that the Benelux countries were about to join the MTCR, the Swiss appeared to be quite surprised and said that perhaps Switzerland should now consider joining the MTCR.

II. 

ASIAN MISSION

GENERAL ISSUES

Economic Growth

It is clear that Japan will remain a key economic rival of the United States. The rapid and sustained economic growth of the Pacific Rim countries suggests that those nations are on a path similar to that of Japan. In particular, Korea and Taiwan are exhibiting economic characteristics similar to those

*  

"Swiss blues" are copies of Swiss licenses, which are provided to other governments when an export involves the retransfer of goods or goods that contain non-Swiss components.

†  

The Asian delegation visited Taiwan, Hong Kong, Macao, the Republic of Korea, and Japan in February 1990. The delegation was headed by panel chairman Roland Schmitt and included panel members Seymour Goodman and Ruth Greenstein, project director Mitchel Wallerstein, and staff member Thomas Snitch. Panel member Benjamin Huberman joined the delegation for the visit in Japan. (Dr. Schmitt did not participate in the meetings in Taiwan and Hong Kong.)



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