In considering the marketable permits idea the Defense Task Force noted several complications. One involves valuation of the permits. Most arms-length technology deals are not valued in lump sums but are contracted as a percentage of a resulting future stream of revenue. A second complication might lie in defining dual-use technologies. Unless the definition stipulated a very clear criterion—such as requiring utilization on a DoD contract—issuance of an approved list of dual-use technologies and an approval bureaucracy might be required. Perhaps the most important complication involves the ultimate implications for wider U.S. interests of introducing a new export control regime.

Although most of the complications could perhaps be addressed, the DTF decided not to endorse the marketable permits concept. As a new and direct approach to the issues discussed in the report, the DTF believes that including a discussion of the idea in this appendix will be useful in stimulating discussion.



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