[House Hearing, 106 Congress]
[From the U.S. Government Publishing Office]
H.R. 3680, TO AMEND THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL
YEAR 1998 WITH RESPECT TO THE ADJUSTMENT OF COMPOSITE THEORETICAL
PERFORMANCE LEVELS OF HIGH PERFORMANCE COMPUTERS
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MARKUP
BEFORE THE
SUBCOMMITTEE ON
INTERNATIONAL ECONOMIC POLICY AND TRADE
OF THE
COMMITTEE ON
INTERNATIONAL RELATIONS
HOUSE OF REPRESENTATIVES
ONE HUNDRED SIXTH CONGRESS
SECOND SESSION
__________
APRIL 6, 2000
__________
Serial No. 106-154
__________
Printed for the use of the Committee on International Relations
Available via the World Wide Web: http://www.house.gov/
international--relations
______
U.S. GOVERNMENT PRINTING OFFICE
67-608 CC WASHINGTON : 2000
COMMITTEE ON INTERNATIONAL RELATIONS
BENJAMIN A. GILMAN, New York, Chairman
WILLIAM F. GOODLING, Pennsylvania SAM GEJDENSON, Connecticut
JAMES A. LEACH, Iowa TOM LANTOS, California
HENRY J. HYDE, Illinois HOWARD L. BERMAN, California
DOUG BEREUTER, Nebraska GARY L. ACKERMAN, New York
CHRISTOPHER H. SMITH, New Jersey ENI F.H. FALEOMAVAEGA, American
DAN BURTON, Indiana Samoa
ELTON GALLEGLY, California MATTHEW G. MARTINEZ, California
ILEANA ROS-LEHTINEN, Florida DONALD M. PAYNE, New Jersey
CASS BALLENGER, North Carolina ROBERT MENENDEZ, New Jersey
DANA ROHRABACHER, California SHERROD BROWN, Ohio
DONALD A. MANZULLO, Illinois CYNTHIA A. McKINNEY, Georgia
EDWARD R. ROYCE, California ALCEE L. HASTINGS, Florida
PETER T. KING, New York PAT DANNER, Missouri
STEVEN J. CHABOT, Ohio EARL F. HILLIARD, Alabama
MARSHALL ``MARK'' SANFORD, South BRAD SHERMAN, California
Carolina ROBERT WEXLER, Florida
MATT SALMON, Arizona STEVEN R. ROTHMAN, New Jersey
AMO HOUGHTON, New York JIM DAVIS, Florida
TOM CAMPBELL, California EARL POMEROY, North Dakota
JOHN M. McHUGH, New York WILLIAM D. DELAHUNT, Massachusetts
KEVIN BRADY, Texas GREGORY W. MEEKS, New York
RICHARD BURR, North Carolina BARBARA LEE, California
PAUL E. GILLMOR, Ohio JOSEPH CROWLEY, New York
GEORGE RADAVANOVICH, Califorina JOSEPH M. HOEFFEL, Pennsylvania
JOHN COOKSEY, Louisiana
THOMAS G. TANCREDO, Colorado
Richard J. Garon, Chief of Staff
Michael H. Van Dusen, Democratic Chief of Staff
John P. Mackey, Republican Investigative Counsel
Parker Brent, Staff Associate
------
Subcommittee on International Economic Policy and Trade
ILEANA ROS-LEHTINEN, Florida, Chairman
DONALD A. MANZULLO, Illinois ROBERT MENENDEZ, New Jersey
STEVEN J. CHABOT, Ohio PAT DANNER, Missouri
KEVIN BRADY, Texas EARL F. HILLIARD, Alabama
GEORGE RADANOVICH, California BRAD SHERMAN, California
JOHN COOKSEY, Louisiana STEVEN R. ROTHMAN, New Jersey
DOUG BEREUTER, Nebraska WILLIAM D. DELAHUNT, Massachusetts
DANA ROHRABACHER, California JOSEPH CROWLEY, New York
TOM CAMPBELL, California JOSEPH M. HOEFFEL, Pennsylvania
RICHARD BURR, North Carolina
Mauricio Tamargo, Subcommittee Staff Director
Jodi Christiansen, Democratic Professional Staff Member
Yleem Poblete, Professional Staff Member
Victor Maldonado, Staff Associate
C O N T E N T S
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Page
Markup on H.R. 3680, to amend the National Defense Authorization
Act for Fiscal Year 1998 with respect to the adjustment of
composite theoretical performance levels of high performance
computers...................................................... 1
APPENDIX
Prepared statements:
The Honorable Ileana Ros-Lehtinen, a Representative in Congress
from Florida, and Chair, Subcommittee on International Economic
Policy and Trade, Committee on International Relations......... 8
The Honorable Donald A. Manzullo, a Representative in Congress
from Illinois.................................................. 10
Bill:
H.R. 3680........................................................ 13
H.R. 3680, TO AMEND THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL
YEAR 1998 WITH RESPECT TO THE ADJUSTMENT OF COMPOSITE THEORETICAL
PERFORMANCE LEVELS OF HIGH PERFORMANCE COMPUTERS
----------
THURSDAY, APRIL 6, 2000
House of Representatives,
Subcommittee on International Economic
Policy and Trade,
Committee on International Relations,
Washington, DC.
The Subcommittee met, pursuant to notice, at 2:10 p.m., in
room 2172, Rayburn House Office Building, Hon. Ileana Ros-
Lehtinen (Chair of the Subcommittee) presiding.
Ms. Ros-Lehtinen. This Subcommittee will come to order.
American ingenuity, creativity and talent has throughout
the centuries spiraled the United States into a position of
global leadership. It has enabled us to adapt and build upon
economic, political and social changes to usher in a new era of
prosperity and opportunity.
Just as Eli Whitney's cotton gin served as the catalyst for
the Industrial Revolution, the computer industry responsible
for one-third or real economic growth continues to serve as the
driving force behind the incredible commercial expansion that
the U.S. is now enjoying. However, it cannot continue this
unparalleled trend unless it is able to innovate and compete in
new markets. This goes to the heart of the legislation that we
are considering today.
H.R. 3680, introduced by our House colleagues David Dreier
and Zoe Lofgren takes into account emerging threats and
security considerations by maintaining a limited waiting
period. Nevertheless it offers a practical, judicious and
realistic solution to the challenges faced by our computer
industry by reducing the Congressional review period from 180
to 30 days. H.R. 3680 would make the waiting period more
reasonable and bring it into line with other review periods for
changing national security export controls.
Currently, for example, there is a 30-day waiting period
established by Congress to remove articles from the munitions
list, a list of Defense articles and services that are subject
to export controls including such items as artillery, launch
vehicles, missiles, rockets, torpedoes, warship, aircraft, and
tanks. Yet we maintain a 180-day waiting period for exports of
supercomputers.
From a practical perspective it does not make any sense for
military items or arms transfers to require less time for
Congressional review than that which is required for
supercomputers. These products and technology have broad
commercial application and an innovative cycle or life cycle of
less than 3 months. If we do not reduce the waiting period and
expedite the process for our computer industry, we will have a
situation where new export controls will be out of date by the
time they are approved.
For example, the new policy announced by the Administration
on February 1st of this year will be an anachronism by the time
the current 6-month review period expires on August 1st. It is
impossible for computer export control policy to keep pace with
the ever-changing technological and market realities unless we
pass H.R. 3680 to reduce Congressional review to 30 days.
We need to avoid a repetition of recent events. For
example, last Fall Apple Computers began marketing its new
single processor personal computer whose power exceeded the
computer export control threshold in effect at that time.
However, Apple was unable to sell any of these new systems
because the adjustment made by July of last year did not become
effective until January, 2000. IBM was in a similar situation
with its new Aptiva personal computer line.
H.R. 3680 is a bipartisan bill which provides immediate
relief for the computer industry, an industry which is
conducting landmark, cutting edge work to maintain U.S.
technological leadership. H.R. 3680 maintains the delicate
balance between national security and market considerations
while providing a more responsive, realistic approach to export
controls on supercomputers.
I am proud to be a cosponsor of this measure, and I am
encouraged by the fact that all the majority Subcommittee
Members have also rendered their support as cosponsors, and
that person needs some Florida orange juice for Dana, and I am
proud to recognize Mr. Robert Menendez of New Jersey, our
Ranking Member. Thank you, Bob.
[The prepared statement of Ms. Ros-Lehtinen appears in the
appendix.]
Mr. Menendez. Thank you, Madam Chairlady, and I am glad we
are holding this markup. I would have hoped that the
legislation would be as futuristic as the room is and would
have a few more things to it, but at least we are doing
something.
Madam Chairlady, the Republicans' impromptu inclusion of a
180-day Congressional notification period for increasing the
MTOPS level for export sales in the 1998 National Defense
Authorization Act handicapped the American computer industry. A
180-day review period has made it impossible for the U.S.
Government to respond quickly to the latest advances in
computer processing technology.
Last summer for example, new personal computers introduced
by Apple and IBM surpassed the MTOPS level for exports for Tier
3 countries like Israel and Egypt. It was not until after the
180 day notification period ended in January that these
computers were allowed to be sold without a license.
Later this year Intel is expected to introduce the Itanium
chip that will allow a computer that uses four chips to operate
at nearly 23,000 MTOPS, a level that exceeds current policy for
export sales to Tier 2 and Tier 3 countries. In the computer
industry, where the average shelf-life of a computer is no more
than 18 months and probably closer to 12, a 6-month delay in
sales is a very long time, particularly when overseas
competitors are nipping at the heels of American companies.
For this reason I strongly support this legislation.
However, I am disappointed that this legislation only addresses
the MTOPS notification period. The legislation does not address
other NDAA-derived problems like the 120-day notification
period for moving countries between tiers and burdensome post-
shipment verification requirements.
More importantly, while this bill fixes one problem, it is
not a substitute for reauthorizing the EAA and updating our
Cold War export control policies.
I intended to offer amendments today to address these
issues, but in the interest of the bill's passage in the House
I have decided to withhold at this stage from offering any
amendments. It is unfortunate that there are those who cannot
see clear to making these very important changes that would
ensure America's continued leadership in the computer industry.
America's industry deserves laws that are responsive to
today's global economy and not laws that were created over two
decades ago to respond to Cold War era threats.
I know that the Chairlady shares my view that in order to
sustain our leadership in the global economy we must take
action. I hope that she and other enlightened Members of the
Republican caucus can talk to some of their colleagues about
the importance of reauthorizing the EAA. No one in the Congress
is advocating for changes that would undermine our national
security, but rather for policy changes that would ensure our
national security while also streamlining our export control
laws to focus on those countries and those exports that are of
greatest concern to our nation.
It is our obligation to address this issue and to ensure
that our laws reflect what is in the best interest of our
nation. Failure to do so keeps the Congress and its legitimate
role out of the issue and cedes it to the executive branch, so
instead of this piecemeal approach, we should consider
comprehensive legislation, namely the EAA, to reform our export
control laws, but I do urge for the purposes of solving part of
our problems that our colleagues support today's legislation.
Thank you.
Ms. Ros-Lehtinen. Thank you so much, Mr. Menendez. Mr.
Rohrabacher, Mr. Crowley, do you have opening statements?
Mr. Crowley. Yes.
Ms. Ros-Lehtinen. Yes, Mr. Crowley.
Mr. Crowley. Thank you, Madam Chairman.
I am here today to speak in support of H.R. 3680 to amend
the National Defense Authorization Act and reduce the waiting
period for the export of computers from 180 days to 30 days. I
am proud to cosponsor this legislation, which will enable
American high tech companies to compete effectively around the
world.
Currently the NDAA requires a 6-month waiting period before
the Administration can update Tier 3 countries' export control
laws. When NDAA went into effect in 1998 the bill targeted
computers that operated above 2000 MTOPS. Today's personal
computers operate in the 4000 MTOPS range and office servers in
the 12,000 MTOP range.
The current 6-month waiting period clearly does not make
sense for products that have a 3-month innovation cycle and are
widely available from our foreign competitors. I know that some
of my colleagues think that this legislation is not going far
enough. I agree with them and I am looking forward to working
with my distinguished colleagues on this Subcommittee to
overhaul the U.S. export control system in a more comprehensive
manner, but we also have to realize how time-sensitive the
passage of H.R. 3680 is.
The new Intel microprocessor, the Itanium, will be
available at midyear. A four-way Itanium processor computer is
projected to perform above 22,000 MTOPS, therefore the recent
update to a threshold of 12,500 MTOPS will already be out of
date when it takes effect.
Make no mistake, our current economic boom relies heavily
on the information technology industry. The IT sector
contributed about 35 percent to U.S. economic growth in recent
years and foreign sales are crucial to that success, but our
broken export control system threatens to cost the computer
industry valuable sales in some of the most critical markets in
the world.
We should concentrate our resources on controlling real
supercomputers and not waste them on controlling widely
available business computers. This bipartisan legislation is
supported by the Administration and the computer industry, and
I urge my colleagues to vote in favor of it today.
Thank you, Madam Chair.
Ms. Ros-Lehtinen. Thank you so much, Mr. Crowley.
Hillel, if you could pass on to the Chairman our deep
dissatisfaction. I had told all the Subcommittee Members that
our images would be portrayed as rock stars on this giant
screen before us, but alas, it is not to be, and I was
practicing my air guitar all morning.
Mr. Crowley. Madam Chair, I just want to let you know, I
think you are a rock star, no matter whether you are on the
screen or not.
Ms. Ros-Lehtinen. Aw--thank you. He's good. He's good.
Pursuant to notice, the Subcommittee will now turn to the
consideration of H.R. 3680, which the Staff Director will
report, Mr. Tamargo.
Mr. Tamargo. H.R. 3680, a bill to amend the National
Defense Authorization Act for Fiscal Year 1998 with respect to
the adjustment of composite theoretical performance levels of
high performance computers.
Ms. Ros-Lehtinen. Without objection, the Clerk will read
the text of the bill.
Mr. Tamargo. To amend the National Defense Authorization
Act for Fiscal Year 1998 with respect to the adjustment of
composite theoretical performance levels of high performance
computers. Be in enacted by the----
Ms. Ros-Lehtinen. Without objection, the bill is considered
as having been read and is open to amendment at this point.
Are there any amendments? If there are no amendments, the
Chair will put the question on favorably reporting the bill to
the full Committee.
So many who are in favor of the question, say aye.
[Chorus of ayes.]
Ms. Ros-Lehtinen. So many who are opposed, say no.
[No response.]
Ms. Ros-Lehtinen. The ayes appear to have it. The ayes have
it and the bill will be forwarded to the full Committee.
[The bill appears in the appendix.]
I thank the Members for their cooperation, and before we
adjourn I would like to recognize Mr. Bereuter for some
statements and we will be in touch with Chairman Gilman about
prompt consideration of this measure in the full Committee next
Thursday, April 13th.
Mr. Bereuter.
Mr. Bereuter. Madam Chairman, I have no comment. I just
want to commend you on being so expeditious and I was happy to
get here in time for the vote.
Ms. Ros-Lehtinen. Thank you so much.
The Subcommittee will stand in recess subject to the call
of the Chair. Thank you.
[Whereupon, at 2:25 p.m., the Subcommittee adjourned
subject to the call of the Chair.]
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A P P E N D I X
APRIL 6, 2000
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