CRS-25 performance level, commodities may be exported to the PRC without CoCom approval. Such exports are subject to the discretion of export control authorities in each member nation. Goods and technology that exceed the PRC Green Line may still be exported to the PRC but require the unanimous approval of all CoCom members. COUNTRY GROUP Q, W, AND Y Group Y: Group W: USSR, Albania, Bulgaria, Czechoslovakia, Estonia, German According to the Export Administration Regulations, the Department of Commerce "conducts a continuing review of commodities and technology to assure that prior approval is required for the export or reexport of U.S.-origin commodities and technical data" to countries in Country Groups Q, W, and Y "only if the commodities or technical data have a potential for being used in a manner that would prove detrimental to the national security of the United States. The general policy of the Department [of Commerce] is to approve applications or requests to export or reexport such commodities and technical data to these destinations (other than the USSR and Poland) when the Department determines, on a case-by-case basis, that the commodities or technical data are for civilian use or would otherwise not make a significant contribution to the military potential of the country of destination that would prove detrimental to the national security of the United States. "To permit such policy judgments to be made, each export application and reexport request is reviewed in the light of prevailing policies with full consideration of all relevant aspects of the proposed transaction. The review generally includes an analysis of the kinds and quantities of commodities or technologies to be shipped; their military or civilian uses; the unrestricted availability abroad of the same or comparable items; the country of destination; the ultimate end-users in the country of destination; and the intended end-use. "Applications covering certain commodities and technical data that are controlled by the United States and certain other nations that cooperate in an international export control system and are proposed for export or reexport to Country Group Q, W, or Y may have to be forwarded to the Coordinating Committee (CoCom) of this international export control system for consideration in accordance with established CoCom procedures. "Although each proposed transaction is considered individually, certain goods on the Commodity Control List [(CCL)] are more likely to be approved than others." The Advisory Notes attached to each entry on the CCL identifies such goods. (Export Administration Regulations, Part 785, pp. 1 2). CRS-26 = unosed to multilateral, foreign policy sanctions agamat Juve efies for exports of technical data and equipment for fe THE Et the Kama River and Zil truck piece Sper man Jepuntion, Part 785, pp. ibid.). COUNTRY CHOCP V (INCLUDES THE PRC AND YUGOSLAVIA) Country Grong includes all countries not included in any other country group exceps Canada Country Group V includes all members of CoCom exceps Canstar plus other countries such as the People's Republic of Chine, Yugosavis, Im. Iraq, Syria, Republic of South Africa, Afghanistan, Swuzenant, Sweden, etc. People's Republic of China. The general licensing policy is to consider exparts for China under Country Groups T [includes most Latin American and Canobsan countries] and V policies, except that there are certain commodities, dacs, and end-uses that may require extended review or denial. Of particular concern are exports that would make a direct and significant contribution to bucear weapons and their delivery systems, electronic and antisubmarine warisze, mailigence gathering, power projection, and air superiority. Licenses may be approved even when the end-user or end-use is military. Commodities of dass may be approved for export even though they may contribute to Chinese military development." This policy now appears to be inoperative. The Commerce Department is reportedly taking a close look at all applications for exports of commodities and technologies destined to China in order to deny applications where the end-user is either the Chinese military or the police. Bach application is considered individually. The Advisory Notes in the beaded "Note for the People's Republic of China" provide guidance on equipment likely to be approved most rapidly for China and that for the most part will not require any interagency review. Items with higher performance evels than those described in the Advisory Notes may also be approved on a Case by case basis. Applications covering commodities and technical data approved by the United States that are controlled by the CoCom international export control you may have to be forwarded to CoCom for consideration in accordance tablished procedures before a license is issued. (Export Administration tuloons, Part 785, p. 4.) Eximbank Activity in China (FY 1989) 1. AUTHORIZED LOAN AND GUARANTEE CASES FOR CHINA (FY 1989 YEAR TO DATE) Auth Value YalusDate CRS-27 APPENDIX B: EXPORT-IMPORT BANK ACTIVITY IN CHINA - FY 1989 Totals IV. PENDING PRELIMINARY COMMITMENT CASES INCLUDING DUPLICATES FOR CHINA Applicant Buyer Send Elect Co. Dong Fang Elect 77.3 65.7 0.0 07/07/89 Qinhuangdao Pri $135.2 $115.0 0.0 Barza Eng. Co. Exporter Buangdong Nuct Samoank may not currently deny applications for baan Lacts reasons without a determination acy of state that it is in the national interest to 656-y-case or with respect to China generally. In 22 sensitivity of this issue with respect to China 1., we are referring each application for credit perchent of State for a human rights clearance. now if I can provide any further information -esentatives APPENDIX 6 Statement by American Electronics Association and Electronic Industries Association House Foreign Affairs Committee Subcommittees on International Economic Policy and Trade, July 19, 1989 Thank you Mr. Chairman and other distinguished members of the committee for the opportunity to comment on the impact of economic sanctions against China. Due to the rescheduling of the hearing, we were unable to testify; however, our industry is unanimously united on the ineffectiveness of trade sanctions. As a demonstration of the industry consensus on this issue, AEA and EIA are able to submit a joint statement. We are commenting today because of the recent tragic events in China. The massacre in Tiananman Square and the subsequent execution and repression of the students and workers is repugnant to our industry and each of us individually. While we deplore this tragic turn of events, we believe the imposition of sanctions beyond those imposed by the Administration is inappropriate. |