Chapters One and Two comprise the annual report of BXA activities as called for by the provisions of the Export Administration Act. Chapter Three is the foreign policy report called for by the provisions of Section 6 of the EAA. You will find Chapter Three particularly useful since it explains the policy and practice of our export controls which are based upon foreign policy interests. These are many of our controls today.

Appendix One goes with Chapter Three and is a summary of public comments we received on the imposition of foreign policy controls. Appendix Two also goes with Chapter Three and is a chart of the member contries in the various multilateral export control regimes as of December 1996.