Gates poses overhaul of sensitive export list to keep weapons from enemies, share with allies

By Pauline Jelinek, AP
Tuesday, April 20, 2010

Gates: Sensitive export list outdated, ineffective

WASHINGTON — The government will update a Cold War-era rule book that decides which U.S. technologies and widgets may be sold abroad, revamping a system criticized as too strict and one that doesn’t always keep sensitive technology out of enemy hands, Defense Secretary Robert Gates said Tuesday.

The move was expected to open doors for U.S. businesses that want to sell their wares abroad but can’t — or don’t bother — because U.S. regulations are so restrictive.

But the plan is likely to encounter resistance in Congress, where many lawmakers say they are worried about proliferation. While some of the reforms can be done thru executive power, a complete overhaul of the system would require legislation.

Gates said he wants Congress to pass a reform bill by the end of the year because the existing bureaucracy has alienated U.S. allies and still failed to keep sophisticated technology away from adversaries.

The “famous maxim, ‘He who defends everything, defends nothing’ certainly applies to export control,” Gates said in a speech attended by defense contractors.

The proposal is focused on so-called dual-use technologies, items like computers and helicopter spare parts that are sold commercially for civilian purposes but also can be used by militant forces. Various federal agencies regulate these items and have competing oversight on whether they may be sold abroad.

The Obama administration’s plan calls for the creation of a single list and a single licensing agency. The plan also calls for the creation of a single enforcement agency. This final step in particular was expected to require legislation.

Gates said the single list and licensing agency would allow the government to concentrate on controlling the nation’s “crown jewels.”

“Items that have no significant military impact or that use widely available technology could be approved for export quickly,” Gates said.

Lawmakers on Tuesday said they were supportive of the concept, but some stopped short of endorsing the administration’s plan. Reps. Ike Skelton, D-Mo., chairman of the House Armed Services Committee, and Rep. Buck McKeon of California, the panel’s top Republican, said they looked forward to convening hearings on the issue.

National security must remain “the paramount factor,” McKeon said.

Rep. Howard Berman, D-Calif., the chairman of the House Foreign Affairs Committee, and Sen. Christopher Dodd, D-Conn., who heads the Senate Banking Committee, are said to be the plan’s biggest advocates.

In a statement, Berman said Gates provided a “forceful rationale” for reform and that he would sponsor an overhaul bill.

Gates says a major culprit in the current system is an overly broad definition of what should be controlled. When he was deputy director for intelligence at the CIA in 1982, Gates said the U.S. was tracking so many technologies that the number of items outstripped the government’s ability to monitor them.

“We were wasting our time and resources tracking technologies you could buy at RadioShack,” he said.

The system also is mired in bureaucracy and spread around a number of federal agencies including the Defense, State and Commerce departments.

“In theory, this provides checks and balances,” he said. “In reality, it creates confusion about who has jurisdiction, allowing for more mistakes and for exporters to shop around for the agency that will give them the best result.”

Associated Press writer Sagar Meghani contributed to this report.

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