QUOTE OF THE DAY:  "In times of war there is no law."  Cicero.

Pentagon Labs Failed To Apply Export Rules, Internal Audit Says
Copyright © 2000 Nando Media, Copyright © 2000 Associated Press
By ROBERT BURNS, Associated Press

WASHINGTON (April 5, 2000 8:44 a.m. EDT.) Pentagon research labs disclosed technical data of potential military value to Chinese, Russian and other foreign visitors in recent years without first questioning if export licenses were required, an internal audit by the Defense Department inspector general says.

In the first of a series of reports required by Congress, the inspector general's office said it reviewed cases in which foreign visitors had seen or been briefed about computer software or technology. Under U.S. export administration rules, any such provision of information is deemed to be an export to the home country of the visitor.

The audit found Defense Department laboratories and other research facilities did not have in place procedures for determining whether export licenses were required. The auditors found that the Army, Navy and Air Force were not even aware of the concept of deemed exports.

Congressional concern about the unauthorized or unintended spread of militarily useful U.S. technology came to a head last year when Wen Ho Lee, a former scientist at the Energy Department's Los Alamos National Laboratory, was fired after being investigated for possible espionage. He was not charged with espionage but was charged with 59 counts of mishandling classified material.

Among facilities that the Pentagon inspector general audited was the Army Communications-Electronics Command at Fort Monmouth, N.J. It had more than 4,300 foreign visitors in 1998-99, including seven people from China. Auditors found no export license or other documents there that would describe the specifics of the Chinese visit or technical information released to them.

Similarly, for a November 1999 visit by two Russians to the aircraft division of the Naval Air Warfare Center at China Lake, Calif., no export license or other documentation could be found by the auditors. The Russians were there to discuss issues regarding aeronautics systems, which the Defense Security Service identified in 1999 as one of the four technology areas most sought by foreign entities. The others were lasers and sensors, information systems and explosives and detonators.

The inspector general asked the Defense Department to comment on the findings by May 15.



William A. Reinsch is undersecretary for export administration in the U.S. Department of Commerce. As head of the Bureau of Export Administration, Reinsch is charged with administering and enforcing export control policies of the United States government as well as its antiboycott laws. Further the Bureau is part of an interagency team that helps Russia and other emerging nations develop export control systems and convert their defense industries to civilian production.  From 1991 to 1993, Reinsch was a senior legislative assistant to Senator John D. Rockefeller IV.  From 1977 to 1991 he served on the staff of the late Senator John Heinz as chief legislative assistant.  Prior to 1977, Reinsch was legislative assistant to representatives Richard Ottinger and Gilbert Gude, acting staff director for the House Environmental Study Conference and a teacher in Maryland.  In addition to his legislative work, he has served as an adjunct associate professor at the University of Maryland and is also president of the Saint Mark Elderly Housing Corporation.


Press Release: Bureau of Export Administration U. S. Department of Commerce March 8, 2000

Department of Commerce Appoints Export
Administration Chief Counsel

WASHINGTON -- U.S. Commerce Secretary William M. Daley today announced the appointment of Karen Day, of Washington, D.C., as Chief Counsel for Export Administration. Day will serve as the chief legal advisor to the Department’s Bureau of Export Administration (BXA).

Prior to joining the Department of Commerce, Day was Senior Legislative Assistant to U.S. Senator Barbara Boxer (D-CA). Day was responsible for legal and policy analysis in the areas of international trade, export controls, technology and Internet usage, telecommunications, and intellectual property.

Day received a Juris Doctor from the University of North Carolina at Chapel Hill in 1990 and a Bachelor of Arts from Howard University in 1987. She is a member of District of Columbia Bar, the American Bar Association, and the Trade Policy Forum.

BXA is charged with administering and enforcing the export control policies of the U.S. government as well as its antiboycott laws and industry compliance of the Chemical Weapons Convention. In addition, the Bureau is part of an interagency team helping Russia and other newly emerging nations develop effective export control systems.



"You cannot think only of "restricted countries" because some of our export controls apply worldwide. Where you may or may not ship your goods varies with each transaction and depends on the nature of the goods, the identity of the proposed recipient of the goods, and the activity or activities in which the recipient is involved. You must determine that information before you can decide whether you need an export license. In some situations, the Export Administration Regulations (EAR) require an export license for shipments to any country in the world (even Canada, in rare circumstances). Part 746 of the EAR lists countries that are subject to embargoes or other special controls. Presently, there are seven countries for which shipment of almost all commodities requires a license for export. Those countries are Iran, Iraq, Libya, Serbia, Sudan, North Korea, and Cuba."