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Thursday, July 1, 1999 Published at 21:45 GMT 22:45 UK


World: Americas

Clinton eases computer controls

Maintaining controls would not benefit national security

US President Bill Clinton has relaxed restrictions on the sale of American computers abroad, including to China and Russia.

The broad easing of the curbs came despite calls from some in Congress to tighten them even further.


[ image: Enjoying the Internet in China in 1998]
Enjoying the Internet in China in 1998
"Maintaining these controls would hurt US exports without benefiting our national security," Mr Clinton said, pointing to the "extraordinarily rapid" pace of change in the computer industry.

The computer industry had sought the change because current restrictions, designed to keep advanced technology out of the hands of hostile militaries, have failed to keep up with the advances in commercially available computers.

BBC Washington Correspondent Rob Watson says the speed requirements, which were set in 1996, are looking hopelessly outdated as technological advances produce ever-faster computers.


The BBC's Rob Watson says Congress is likely to be concerned by the easing of the rules
By the first half of 2000 equipment will be available to the public which exceeds the current limits which trip the military ban. Intel, the chip manufacturer, and Sony, with its Playstation, are due to lead the advanced processing way.

Industry experts say the Chinese market for computers is growing about twice as fast as the world market.

It is now the third or fourth largest market in the world, and is expected to be second within a couple of years.

Waiting period

Congress has to approve the order, and even then there is a six-month waiting period before it can come into force. White House chief of staff John Podesta told reporters that the administration wants to work with Congress to reduce that period.


[ image:  ]
Correspondents say the move is virtually certain to face objections from some legislators in the Republican-run Congress, who have been angered by the recent Cox Report into alleged Chinese nuclear spying, and who are concerned about controlling "dual-use" technologies with civilian and military applications.

The decision could affect exports to about 100 countries, from the former Soviet bloc to Latin America.

Mr Podesta said that without easing export controls it was estimated that American computer-makers would lose sales worth $4bn over the next four years to foreign competitors.

Thresholds

The order specifically raises the thresholds at which high-speed computers require special export licences, depending on the country to which they will be shipped, and how much of a security threat that country poses to the US.

The US high-tech industry has been pressing hard for even looser restrictions on computer exports. It has some congressional support: 79 legislators reportedly wrote to the president last month urging him to ease the controls.

Mr Clinton said he would review the limits again in six months.



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