Where Industry and Security Intersect
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Chairman Dodd, Senator Shelby, and Members of the Committee:
It is a great honor for me to be here today as the President’s nominee for the position of Assistant Secretary of Commerce for Export Administration. I thank the President and Secretary Gutierrez for their confidence and trust in me. I would also like to thank the members of the Committee’s staff who have taken the time to meet with me prior to today’s hearing. If confirmed, I look forward to building on the cooperative working relationship between the Bureau of Industry and Security and this Committee. I would also like to thank my wife Barbara and our children, Read and Louisa, for their support.
Mr. Chairman, I recognize the importance of the obligation I will be undertaking if confirmed. BIS plays a critical role in advancing U.S. national security, foreign policy and economic objectives by ensuring an effective export control and treaty compliance system, while at the same time facilitating continued U.S. strategic technology leadership.
For close to thirty years, I have had the opportunity to work on and examine these important issues as a partner at a large international law firm. During most of that time, I have advised companies across a range of industry sectors and countries on U.S. export controls (both commercial and defense-related) , as well as economic sanctions, antiboycott issues, the Foreign Corrupt Practices Act and foreign investment. I have been active in professional organizations addressing these and other international trade matters, and I have chaired and spoken frequently at conferences which have promoted dialogue between industry and government officials on regulatory, policy and enforcement developments.
Of course, as a practicing attorney one is professionally obligated to focus on the interests of one’s clients, but more important is an obligation to the law itself. The focus of my practice has always been on assisting clients to comply with and to achieve results that are consistent with the laws, regulations and agency guidance in this complex area. At the same time, my continuing involvement in professional and other organizations has also enabled me to focus on the larger policy issues that shape the environment in which these laws and regulations are applied. I believe this focus has made me a better counselor, and has better prepared me to address these issues from the perspective of a policy maker, if I am confirmed.
One of the highest priorities for me in the near term is the passage of S.2000, the Export Enforcement Act of 2007. I believe I can speak on behalf of the entire exporting community in thanking Chairman Dodd for introducing this legislation to reauthorize the Export Administration Act. This legislation is essential to provide the tools for vigorous enforcement. It is important for the rule of law and good government.
The threats we face today are diffuse – principally terrorism, non-state actors and the proliferation of weapons mass destruction. It is important to work with our international partners, both bilaterally and through multilateral arrangements such as the Wassenaar Arrangement, the Nuclear Suppliers Group, etc., to combat these threats. On the domestic front, we must also adapt export controls to the economic realities of worldwide manufacturing, sales and service, the instantaneous flow of technology and financial resources at the click of a computer mouse, and the migration of technology from commercial to defense applications and vice versa.
Crafting legislation that addresses these 21st century issues is a task that cannot realistically be accomplished in a short period of time, but I would hope, if confirmed, to play an active role in stimulating discussion with all parties and to start the process of building a consensus, or least a broadly shared approach, that may lead to enactment of such legislation in the foreseeable future.
Even within the existing system, however, important efforts are underway to address these new threats and economic realities. These efforts include the President’s export reform initiative, responding to the recommendations of the Deemed Export Advisory Committee, and continued focus on illegal transshipment concerns. If confirmed, I would hope to contribute the knowledge and experience I have acquired over the years to advancing these efforts and, where possible, bringing them to successful conclusion.
When I began working in the area of export controls, I had the good fortune to start out with many individuals who have made their careers at BIS, and I am pleased that a number of them are still there making important contributions every day. I still count these individuals among my friends and, if confirmed, it will be a great pleasure and privilege for me to work with them as a colleague.
In conclusion, if confirmed, I look forward to contributing my knowledge and experience to the development of policy and the administration of U.S. export controls at the Bureau of Industry and Security and I welcome the opportunity to work with the Committee on important initiatives in this area. I would like to thank the Committee for its consideration of my nomination and I would be pleased to answer any questions.