PROCEDURES FOR LICENSE APPLICATIONS.

SEC. 2425. PROCEDURES FOR LICENSE APPLICATIONS. (a) Review of License Applications by the Secretary of Defense.—Section 10(g) of the Act (50 U.S.C. App. 2409(g)) is amended— (1) in paragraph (2)(A) by inserting “and the Secretary” after “to the President”: (2) by inserting before the last sentence of paragraph (2) the following: “Whenever the Secretary of Defense makes a recommendation to the President pursuant to paragraph (2)(A), the Secretary shall also submit his recommendation to the President on the request to export if the Secretary differs with the Secretary of Defense.”; (3) by adding at the end of paragraph (2) the following: “If the Secretary of Defense fails to make a recommendation or notification under this paragraph within the 20-day period specified in the third sentence, or if the President, within 20 days after receiving a recommendation from the Secretary of Defense with respect to an export, fails to notify the Secretary that he approves or disapproves the export, the Secretary shall approve or deny the request for a license or other authority to export without such recommendation or notification.”; and (4) by striking paragraph (4). (b) Report by Secretaries of Commerce and Defense.—The Secretary of Commerce and the Secretary of Defense shall each evaluate and, not later than 4 months after the date of the enactment of this Act, shall jointly prepare and submit a report to the 102 STAT. 1361Committee on Foreign Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate on the review by the Department of Defense for national security purposes as provided in the Export Administration Act of 1979, of export license applications for exports to countries other than controlled countries under section 5(b)(1) of that Act. (c) Report on Small Businesses.—Section 10(m) of the Act (50 U.S.C. App. 2409(m)) is amended by adding at the end the following: “The Secretary shall, not later than 120 days after the date of the enactment of the Export Enhancement Act of 1988, report to the Congress on steps taken to implement the plan developed under this subsection to assist small businesses in the export licensing application process.”