Finding Common Ground U.S. Export Controls in a Changed Global Environment (1991) / Chapter Skim
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Appendix C
Appendix C
Pages 248-265
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From page 248... ...
"Sunset" provisions, also, would allow for au tomatic decontrol of certain classes of hardware and software products after a number of years, subject to appeal by relevant government agencies. · The foreign availability assessment (FAA)
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From page 249... ...
· Interconnected computer networks now extend worldwide. Transborder data flow and network access are commonplace, and demand for network security products has increased significantly for a range of commercial enduse applications.
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From page 250... ...
technologies, it faces increasingly stiff competition in many areas from Europe, Japan, and a number of newly industrializing countries. In its deliberations, the subpanel drew heavily on the 1988 National Research Council report, Global Trends in Computer Technology and Their Impact on Export Control (hereafter Global Trends.
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From page 251... ...
Disposal of such large and expensive items may be problematic as well. An example of a high-walls product is the high-performance system, or "supercomputer." Supercomputers are usually heavy and large, are produced in small quantities, maintain internal audit trails of users, and require prolonged vendor support.
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From page 252... ...
Production volume: at least 1 million units in cumulative worldwide production. If a sequence of increasingly advanced versions of the candidate product exists, the candidate for commodity status would be the least sophisticated version necessary to add up to the 1 million unit level.
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From page 253... ...
Very high level foreign government guarantees that would result in severe political repercussions if diversions were exposed might also serve as a form of enduse control in conjunction with other methods. The subpanel makes the following recommendation concerning end-use controls.
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From page 254... ...
Software evolves incrementally; successive updates are released about a year apart for most unclassified software, three to five years apart for classified software. Given these facts, the subpanel proposes the establishment of a "sunset" provision for both hardware and software, which would cause computer products to be automatically decontrolled after a certain number of years, subject to appeal by relevant government agencies.
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From page 255... ...
On the basis of its discussions, the subpanel reached the following conclusions: · The foreign availability assessment (FAA) procedure is seriously flawed and has not functioned well as a mechanism for removing products from control lists.
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From page 256... ...
This mechanism might be a modified version of the foreign availability assessment outlined earlier. Technologies MANUFACTURING EQUIPMENT In contrast to many computer end products, computer technology manufacturing equipment tends to have a much longer lifetime because components no longer considered state of the art still must be produced for use in highvolume commodity products or the upgrading of existing machines.
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From page 257... ...
A more reasonable approach for indexing the levels of performance at which special export controls go into effect would track ongoing advances in computing technologies. Performance levels requiring controls would increase with advances in computational speed.
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The subpanel supports the original conclusions and recommendations in Global Trends regarding computer networks, and it notes that little progress has been made in modifying existing policies governing transborder network access and in establishing more reasonable ITAR restrictions on network
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From page 259... ...
For example, · Transborder data flow and network access are now commonplace and are primary corporate resources for sustaining competitive advantage among global competitors. · Commercial demand for network security products, including encryption devices and trustworthy systems, has increased significantly for a range of commercial end-use applications.
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From page 260... ...
Military-use software. Software built or customized for direct military applications, and the customized tools used to build such software, should be tightly controlled.
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The potential for technology transfers has increased greatly, and political and economic changes have gone far beyond what was anticipated. THE TRADITIONAL COMPUTER INDUSTRY The changes in the Soviet industrial structure described in Global Trends have continued, but they have failed to make a significant difference in the performance of the computer industry.
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From page 262... ...
Finally, many parts of the Soviet computer industry remain clouded in secrecy. This casts suspicion on the industry's activities and inhibits more extensive approaches to the relaxation of export controls.
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From page 263... ...
The removal of some internal Soviet restrictions, increased interest in the Soviet market by Western businesses, and relaxed CoCom controls mean that the impact of the conditions that have helped to restrict technology transfer has diminished. The number of channels by which the Soviets can acquire foreign computers continues to increase, especially through Eastern Europe.
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From page 264... ...
These should include both developed and newly industrializing countries. The government should undertake periodic reviews of technological and market trends along the lines of the Global Trends study of 1988.
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From page 265... ...
NOTES 1. National Research Council, Global Trends in Computer Technology and Their Impact on Export Control (Washington, D.C.: National Academy Press, 1988)
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