THE WHITE HOUSE

              Office of the Press Secretary

  _____________________________________________________

  For Immediate Release                   June 30, 1994



  TO THE CONGRESS OF THE UNITED STATES:


       Pursuant to section 204(b) of the International
  Emergency Economic Powers Act, 50 U.S.C. 1703(b), I
  hereby report to the Congress that I have today
  exercised the authority granted by this Act to
  continue in effect the system of controls contained
  in 15 C.F.R., Parts 768-799, including restrictions
  on participation by U.S. persons in certain foreign
  boycott activities, which heretofore have been
  maintained under the authority of the Export
  Administration Act of 1979, as amended, 50 U.S.C.
  App. 2401 et seq.  In addition, I have made provision
  for the administration of section 38(e) of the Arms
  Export Control Act, 22 U.S.C. 2778(e).

       The exercise of this authority is necessitated
  by the expiration of the Export Administration Act on
  June 30, 1994, and the lapse that would result in the
  system of controls maintained under that Act.

       In the absence of control, foreign parties would
  have unrestricted access to U.S. commercial products,
  technology, technical data, and assistance, posing an
  unusual and extraordinary threat to national
  security, foreign policy, and economic objectives
  critical to the United States.  In addition, U.S.
  persons would not be prohibited from complying with
  certain foreign boycott requests.  This would
  seriously harm our foreign policy interests,
  particularly in the Middle East.

       Controls established in 15 C.F.R. 768-799, and
  continued by this action, include the following:

       --  National security export controls aimed
       at restricting the export of goods and
       technologies, which would make a
       significant contribution to the military
       potential of certain other countries and
       which would prove detrimental to the
       national security of the United States.

       --  Foreign policy controls that further
       the foreign policy objectives of the United
       States or its declared international
       obligations in such widely recognized areas
       as human rights, antiterrorism, regional
       stability, missile technology
       nonproliferation, and chemical and
       biological weapons nonproliferation.

       --  Nuclear nonproliferation controls that
       are maintained for both national security
       and foreign policy reasons, and which
       support the objectives of the Nuclear
       Nonproliferation Act.

       --  Short supply controls that protect
       domestic supplies, and antiboycott
       regulations that prohibit compliance with
       foreign boycotts aimed at countries
       friendly to the United States.


       Consequently, I have issued an Executive order
  (a copy of which is attached) to continue in effect
  all rules and regulations issued or continued in
  effect by the Secretary of Commerce under the
  authority of the Export Administration Act of 1979,
  as amended, and all orders, regulations, licenses,
  and other forms of administrative actions under the
  Act, except where they are inconsistent with
  sections 203(b) and 206 of the International
  Emergency Economic Powers Act.

       The Congress and the Executive have not
  permitted export controls to lapse since they were
  enacted under the Export Control Act of 1949.  Any
  termination of controls could permit transactions to
  occur that would be seriously detrimental to the
  national interests we have heretofore sought to
  protect through export controls and restrictions on
  compliance by U.S. persons with certain foreign
  boycotts.  I believe that even a temporary lapse in
  this system of controls would seriously damage our
  national security, foreign policy, and economic
  interests and undermine our credibility in meeting
  our international obligations.

       The countries affected by this action vary
  depending on the objectives sought to be achieved by
  the system of controls instituted under the Export
  Administration Act.  Potential adversaries may seek
  to acquire sensitive U.S. goods and technologies.
  Other countries serve as conduits for the diversion
  of such items.  Still other countries have policies
  that are contrary to U.S. foreign policy or
  nonproliferation objectives, or foster boycotts
  against friendly countries.  For some goods or
  technologies, controls could apply even to
  our closest allies in order to safeguard against
  diversion to potential adversaries.

       It is my intention to terminate the Executive
  order upon enactment into law of a bill reauthorizing
  the authorities contained in the Export
  Administration Act.




                                     WILLIAM J. CLINTON




  THE WHITE HOUSE,
      June 30, 1994.




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