Dear Mr. Speaker: (Dear Mr. President:)
In order to take additional steps with respect to the national emergency described
and declared in Executive Order 12924 of August 19, 1994, and continued on
August 15, 1995, and August 14, 1996, necessitated by the expiration of the
Export Administration Act (Eaa) on August 20, 1994, I hereby report to the
Congress that pursuant to section 204(b) of the International Emergency Economic
Powers Act, 50 U.S.C. 1703(b) (the "Act"), I have today exercised
the authority granted by the Act to issue an Executive order (a copy of which
is attached) to revise the provisions that apply to the administration of
the export control system maintained by Department of Commerce in the Export
Administration Regulations, 15 Cfr Part 730 et seq.
The new Executive order relates to my decision to transfer certain encryption
products from the United States Munitions List administered by the Department
of State to the Commerce Control List administered by the Department of Commerce.
When I made that decision I also decided to amend Executive Order 12981 of
December 5, 1995, which sets forth procedures for the interagency review and
disposition of dual-use export license applications, to include the Department
of Justice among the agencies that have the opportunity to review such applications
with respect to encryption products transferred to Department of Commerce
control.
Also, in issuing the new order, I provided for appropriate controls on the
export and foreign dissemination of encryption products transferred to the
Department of Commerce. Among other provisions, I determined that the export
of encryption products transferred to Department of Commerce control could
harm national security and foreign policy interests of the United States even
where comparable products are or appear to be available from foreign sources.
Accordingly, the new order makes clear that any Eaa provision dealing with
issuance of licenses or removal of controls based on foreign availability
considerations shall not apply with respect to export controls on such encryption
products. Notwithstanding this, the Secretary of Commerce retains the discretion
to consider the foreign availability of comparable encryption products in
any particular case.
Sincerely,
William J. Clinton