Finding Common Ground U.S. Export Controls in a Changed Global Environment (1991) / Chapter Skim
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Appendix A
Appendix A
Pages 199-221
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From page 199... ...
national security export controls apply only to a limited portion of worldwide trade in advanced materials, their estimated impact on U.S. competitiveness is significant.
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ADVANCED MATERIALS INDUSTRY AND U.S. EXPORT CONTROLS Defense-critical materials technologies figure prominently in those emerging technologies identified by a Department of Commerce study as potentially having a multitude of civilian applications and substantially advancing production and quality levels.
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defense capabilities. Although there are a number of critical military applications of advanced materials, and military funding typically drives R&D in advanced materials, the majority of potential applications for advanced materials are commercial, not military.
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Given the market implications, materials firms are more likely to reveal specific contents and processing techniques in patents for materials that may be reverse engineered than in patents for materials for which there is little chance of reverse engineering. Thus, export controls on advanced materials may be somewhat redundant in that the most critical aspects of advanced materials fabrication are either closely guarded as trade secrets or published in patent applications.
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From page 203... ...
The subpanel agreed that only materials marked for procurement for a prototype or existing system should be subject to commercial restrictions or export controls. If advanced materials that have high commercial potential continue to be subject to export restrictions, the U.S.
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· The ECCN entries are defined too broadly and the rationale for control is not clearly stated in either the Commerce Department's Commodity Control List or in the Defense Department's Militarily Critical Technologies List. · Although the Commerce Department's technical advisory committees (TACs)
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not critical A chart separating certain selected ECCN materials entries into these five categories is attached as Annex A2. Definitions of supercritical and critical (see Annex A2)
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An item in risk category III is 1702A, hydraulic fluid. Because of foreign availability, it is assigned an R of 8 (n = 3)
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COMMODITY CONTROL LIST ENTRIES BASE MATERIALS This is the control entry for the most advanced ceramic and ceramic composite materials. The entry covers high-purity fine powders that are crucial to making high-tech fine ceramics and whose control is of strategic concern.
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I am not familiar with the capabilities that exist within the Coordinating Committee for Multilateral Export Controls (CoCom)
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Many of the systems listed under butadiene polymers are manufactured throughout the world, and the specific knowledge to prepare any of these systems is readily available. Rather than enumerate specific items available from foreign countries that are comparable or identical to those manufactured in the United States, it is safer to state that the sophistication of polymer synthesis and scaleup is at a level that almost any country could set up a capability to produce such items.
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· Estimated length of product life cycle for commercial applications is 30,000 flight hours; for military applications, approximately 8,000 flight hours.
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POLYCARBONATE SHEETS Nature of Criticality The polycarbonate sheet with the optical property and strength described in the entry is not militarily critical because many of the new military aircraft do not use it exclusively. However, commercial applications, such as window material for office buildings, are gaining rapidly.
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manufacturers is too large to even begin to list in this review. However, the following is an abbreviated list of companies in foreign countries that possess the technology and capability to process this type of polycarbonate sheet: Imperial Chemicals Industries Shell Mobay-Bayer Rhone-Poulenc Mitsui England The Netherlands Germany trance Japan The manufacturing of this polycarbonate sheet is by no means limited to the countries listed, however.
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· Length of product life cycle is difficult to extrapolate because titanium alloys are 35 years old and show little sign of degradation. Foreign Availability The following countries have supersonic transport designs: France (Hermes)
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An item is multilaterally controllable if it is not produced outside the United States, United Kingdom, Canada, Germany, France, Japan, Norway, Denmark, Netherlands, Belgium, Luxembourg, Australia, Italy, Spain, Portugal, Greece, Turkey, Austria, Finland, Switzerland, or Sweden. Annex AS ILLUSTRATIVE APPLICATION OF :RISK/OPPORTU1SITY FORMULA TO SELECTED ITEMS ON COMMODITY CONTROL LIST Risk RiskOpportunity Opportunity Risk .
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In addition to the outdated premise, export controls, which involve caseby-case review by experts, have become cumbersome, nonuniform, and unpredictable in their application. Moreover, engineers who graduated in the 1980s might not recognize some of the obsolete terms used to describe restricted items.
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, wherever they might be. The general environment for application of export controls is currently one in which invasion or other use of major military force between superpowers is thought to be highly unlikely.
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In the particular case of advanced materials, the primary means of insertion into trade is through substitution of improved parts during system upgrading. Examples include substituting a gallium arsenide processor or high-density mass storage subsystem for older, less capable components and retrofitting a composite wing for aircraft.
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From page 218... ...
. It is highly instructive to reflect that the two internal bounds between inexpensive goods and those priced by their technical labor or scarcity on the one hand, and between obviously scarce or costly components and nuclear materials essential for weapons making on the other, can also be identified with the value of bullion silver and the value of bullion gold.
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From page 219... ...
So, while the mapping of the evolution of market value onto the evolution of technology is inevitably imprecise, the broad correlative truth appears valid. Finally, one has to think about the broad social consequences of excessive export control.
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Earth Movers FIGURE A 4-3 Screening on professional labor content highest value-added products it is capable of building, that is, export control damages the national capacity for wealth generation. It is important to recognize that this affects more than the high-tech professional.
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Given the administrative advantages of sequential, quantitative filters using the producer's own statistics, it seems an attractive possibility to reduce the current complexity and uncertainty (almost arbitrariness) of the existing export control process
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