Word: exporters
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...report says, they "acted without the legally required license" as they worked out the trouble with the Chinese. In the process, says the report, they gave away information on guidance systems that could boost the accuracy of Chinese ballistic missiles. Both Hughes and Loral deny they violated export-control law or transferred sensitive information. Congress reacted last winter by ordering the licensing process back to State...
...told, successive Administrations steadily relaxed export controls on a slew of computers, machine tools and high-end electronics that China could covertly put to forbidden military use. These "dual-use" sales have long eluded a neat solution: security hawks deride pro-traders as "rope sellers"--capitalists eager to sell communists the rope to hang us with. Under the business-first mantra of Commerce Secretary Ron Brown, the Clinton Administration raised the commercial imperative to new heights, shifting decisions from the traditional "no, but..." assumption that tech trade is a security risk unless proved otherwise to the "yes, but..." preference...
...have failed--and faxed it over to the Chinese. This technical feedback, a federal investigation concluded, may have helped China improve the accuracy of its rocket and missile programs. The Defense Department found that Loral and Hughes, another satellite company on the committee, had engaged in a "serious export-control violation" by performing an unlicensed defense service. The State Department asked the Department of Justice to consider criminal prosecution...
...question of whether rules against technology sharing are even effective. The tech industry, not surprisingly, argues they often aren't. Current law requires chipmakers to submit applications to sell powerful microprocessors to countries (such as China and the former Soviet Union states) that are subject to highly restrictive export controls. But Intel argues that it's impossible to prevent the chips it sells to friendly countries from ending up in less friendly ones. "We make microprocessors in the millions each month and ship them to thousands of distributors all over the world, who aren't prevented from selling to China...
Steve Bryen is the Yoda of the arms trade. Formerly the Defense Department's export czar, he knows every sinkhole in the regulatory swamp. Ignore him at your peril--as executives of Space Systems/Loral found out. A 700-page report to be issued this week by a select House committee chaired by Republican Representative CHRISTOPHER COX of California tells how, on April 11, 1996, Bryen warned Loral President Robert Berry not to give China any technical help without first getting State Department permission. Berry had just announced the assignment of top company engineer Wah Lim to head a panel...