control of exports for national security purposes; foreign availability

control of exports for national security purposes; foreign availability Sec. 103. (a) Section 4(b) of the Export Administration Act of 1969 is amended— (1) by striking out the third sentence of paragraph (1); (2) by striking out paragraphs (2) through (4); and (3) by inserting the following new paragraph (2) immediately after paragraph (1): 91 STAT. 236 “(2) (A) In administering export controls for national security purposes as prescribed in section 3(2) (C) of this Act, United States policy toward individual countries shall not be determined exclusively on the basis of a country’s Communist or non-Communist status but shall take into account such factors as the country’s present and potential relationship to the United States, its present and potential relationship to countries friendly or hostile to the United States, its ability and willingness to control retransfers of United States exports in accordance with United States policy, and such other factors as the President may deem appropriate. The President shall periodically review United States policy toward individual countries to determine whether such policy is appropriate in light of the factors specified in the preceding sentence. The results of such review, together with the justification for United States policy in light of such factors, shall be reported to Congress not later than December 31, 1978, in the semiannual report of the Secretary of Commerce required by section 10 of this Act, and in every second such report thereafter. “(B) Rules and regulations under this subsection may provide for denial of any request or application for authority to export articles, materials, or supplies, including technical data or any other information, from the United States, its territories and possessions, to any nation or combination of nations threatening the national security of the United States if the President determines that their export would prove detrimental to the national security of the United States. The President shall not impose export controls for national security purposes on the export from the United States of articles, materials, or supplies, including technical data or other information, which he determines are available without restriction from sources outside the United States in significant quantities and comparable in quality to those produced in the United States, unless the President determines that adequate evidence has been presented to him demonstrating that the absence of such controls would prove detrimental to the national security of the United States. The nature of such evidence shall be included in the semiannual report required by section 10 of this Act. Where, in accordance with this paragraph, export controls are imposed for national security purposes notwithstanding foreign availability, the President shall take steps to initiate negotiations with the governments of the appropriate foreign countries for the purpose of eliminating such availability.”. (b) (1) Section 4(h) of the Export Administration Act of 1969 is amended by striking out “controlled country” in the first sentence of paragraph (1) and in the second sentence of paragraph (2) and inserting in lieu thereof “country to which exports are restricted for national security purposes”. (2) Section 4(h)(2)(A) of such Act is amended by striking out “controlled” and inserting in lieu thereof “such”. (3) Section 4(h) (4) of such Act is amended— (A) by inserting “and” at the end of subparagraph (A); and (B) by striking out the semicolon at the end of subparagraph (B) thereof and all that follows the semicolon and inserting in lieu thereof a period. (4) The amendments made by this subsection shall become effective upon the expiration of ninety days after the receipt by the Congress of the first report required by the amendment made by subsection (a) (3) of this section. (c) Section 4(h) of such Act is amended— (1) in paragraph (1)— 91 STAT. 237 (A) in the first sentence by striking out “significantly increase the military capability of such country” and inserting in lieu thereof “make a significant contribution to the military potential of such country”; and (B) in the second sentence by striking out “significantly increase the military capability of such country” and inserting in lieu thereof “make a significant contribution, which would prove detrimental to the national security of the United States, to the military potential of any such country”; and (2) in paragraph (2) (A) by striking out “significantly increase the military capability of such country” and inserting in lieu thereof “make a significant contribution, which would prove detrimental to the national security of the United States, to the military potential of such country or any other country”. (d) Section 6(b) of such Act is amended by striking out “Commonist-dominated nation” and inserting in lieu thereof “country to which exports are restricted for national security or foreign policy purposes”.