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HRB 020/14
Rok Rev
064167
MDLIAN 3237
(449)
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FM WASHINGTON
TO PRIORITY FCO
TELNO 1787
OF 302121Z JUNE 89
INFO PRIORITY PEKING, PARIS, CANBERRA
INFO ROUTINE SEATTLE, SAN FRANCISCO, NEW YORK, LOS ANGELES
139
OUR TELNO 1583 (NOT TO ALL) : CONGRESSIONAL PROSPECTS FOR
FURTHER US MEASURES AGAINST CHINA : EXPORT CONTROLS
1. ALTHOUGH MOST OF THE EXPORT CONTROL PROVISIONS INCLUDED IN THE LEGISLATIVE PACKAGE APPROVED BY THE HOUSE OF REPRESENTATIVES ON 29 MARCH ARE ALREADY IN EFFECT AS A RESULT OF EXECUTIVE ACTION, THE BILL WOULD IMPOSE A NUMBER OF CONSTRAINTS ON THE ADMINISTRATION'S FREEDOM TO MANOEUVRE IN THIS AREA.
2. THE BILL WOULD REQUIRE THE ADMINISTRATION TO NEGOTIATE WITHIN COCOM TO SUSPEND, ON A MULTILATERAL BASIS, ANY LIBERALISATION OF CONTROLS ON EXPORTS TO CHINA, INCLUDING THE IMPLEMENTATION OF BULK LICENCES AND THE RAISING OF THE PERFORMANCE LEVELS BELOW WHICH GOODS AND TECHNOLOGY MAY BE EXPORTED AT NATIONAL DISCRETION. THE BILL WOULD ALSO REQUIRE THE ADMINISTRATION TO OPPOSE ANY LIBERALISATION OF CONTROLS (BUT NOT BULK LICENCES) FOR A PERIOD OF SIX MONTHS AFTER THE DATE OF ENACTMENT.
3. THE SUSPENSION OF LICENCES FOR MUNITIONS ITEMS WOULD INCLUDE SPECIFICALLY THE LICENCES ALREADY ISSUED FOR THE TWO AUSSAT LAUNCHES AS WELL AS THE APPLICATIONS NOW UNDER CONSIDERATION FOR ASIASAT. (CONTACTS AT STATE HAVE TOLD US THAT PRIME MINISTER HAWKE DID NOT MAKE A STRONG PITCH ON AUSSAT
DURING HIS VISIT TO WASHINGTON THIS WEEK, BUT THAT THE US HAVE UNDERTAKEN TO CONSULT THE AUSTRALIANS IF IT LOOKS AS IF THE LICENCES MIGHT BE SUSPENDED FOR A LENGTHY PERIOD). HOWEVER, SYSTEMS AND COMPONENTS DESIGNED SPECIFICALLY FOR INCLUSION IN CIVIL PRODUCTS WOULD BE EXEMPT FROM THE BAN UNLESS THE PRESIDENT DETERMINED THAT THEY WERE INTENDED FOR USE BY MILITARY OR SECURITY FORCES (THIS IS INTENDED TO PROTECT BOEING'S CIVIL AIRCRAFT CONTRACTS OUR TELNO 1741).
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4. THE BILL WOULD ALSO PROHIBIT SALES OF CRIME CONTROL OR
DETECTION INSTRUMENTS AND PLACE A BAN ON THE ISSUE OF LICENCES AND COOPERATION UNDER THE 1954 ATOMIC ENERGY ACT IN THE CIVIL NUCLEAR FIELD.
6.
THE BILL WOULD ALLOW A DEGREE OF PRESIDENTIAL DISCRETION IN
THE APPLICATION OF ALL THESE MEASURES. BUT THE PRESIDENT WOULD
FIRST HAVE TO SUBMIT A REPORT TO CONGRESS THAT THE PRC GOVERNMENT
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