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Publications of the Casey Institute
of the Center for Security Policy
No. 99-C 137

PERSPECTIVE

29 November 1999

Clinton Lets Trade Trump Security, Again
(Washington, D.C.): The World Trade Organization meeting that opens tomorrow in
Seattle will provide an unparalleled backdrop for demonstrations by those
around the country worried about the Clinton-Gore Administration's proclivity
to put trade above every other national interest. Interestingly, there is one
group whose equities have been perhaps even more seriously afflicted by this
practice than have those of the voluble labor union operatives,
environmentalists, human rights organizations, AIDS activists and opponents of
world government -- namely, the national security community.

Just how grievously America's defense posture has suffered at the hands of the
trade uber alles crowd has been obscured by other manifestations of the
"hollowing out" to which the U.S. military has been deliberately subjected over
the past seven years. It is far easier to see, for example, the devastating
effects being wrought by the combination of: sustained over-commitment of the
armed forces' personnel and assets on innumerable peacekeeping, humanitarian
and other assignments; inadequate force structure and recapitalization; and
plummeting morale.

Decimating the Nation's 'Qualitative Edge'
It could be argued, however, that even more serious damage has been done to our
armed forces' "qualitative edge" -- the decisive advantage in technology that
has in the past permitted numerically inferior American units to dominate the
battlefield and accomplish their mission with minimal casualties. That
advantage has been compromised by Mr. Clinton's single-minded determination to
curry favor with deep-pocketed U.S. exporters and/or foreign governments by
selling Communist China or other potential adversaries militarily relevant
equipment and manufacturing know-how. The latter include, for example:
supercomputers, advanced machine tools, fiber optic and other sophisticated
telecommunications gear, jet engine hot sections, rocket propulsion and
guidance components, "stealth" technology, to name a few.

There is no indication that the Defense Department is properly addressing the
prospective costs to the United States associated with these transactions.
These can be huge. Consider the case nearly two decades ago of the Soviet
Union's illegal acquisition of tools needed to produce very quiet submarine
propellers. For an expenditure of roughly $40 million, the Kremlin was able to
degrade dramatically the U.S. Navy's acoustic anti-submarine warfare (ASW)
techniques. At the time, it was conservatively estimated that restoring the
Nation's previous advantage in ASW would require an investment of over $1
billion. No one has proposed adding many times that amount to the Pentagon's
budget to help preserve or restore America's qualitative edge in the wake of
more recent -- and Clinton-approved -- technology transfers.

Worse yet, the ultimate costs of the Administration's ill-advised dual-use
exports will probably be measured in a currency we hold still more dear: the
lives of American servicemen and women. This is especially true since the
Administration has all-but-liquidated America's mechanisms for controlling
overseas sales of such technologies. The House select committee chaired by Rep.
Chris Cox (R-CA) underscored this point recently in connection with Chinese
technology theft, diversion and above-board acquisition efforts -- using words
that could apply equally well to other potential foes:

United States and international export control policies and practices have
facilitated the People's Republic of China's efforts to obtain militarily
useful technology. Recent changes in international domestic export control
regimes have reduced the ability to control transfers of [such] technology. The
dissolution of the Coordinating Committee on Multilateral Export Controls
(COCOM) in 1994 left the United States without an effective, multilateral means
to control exports of militarily useful goods and technology. Interring
D.T.S.A.

Unfortunately, the Clinton-Gore team has compounded its folly in dismantling
COCOM by waging war on the Defense Technology Security Administration (DTSA).
The fact that this Pentagon agency played a pivotal role in winning the Cold
War by impeding Soviet efforts to acquire Western dual-use equipment and know-
how apparently earned it the abiding enmity of a number of Mr. Clinton's
political appointees. From the get-go, they have employed one bureaucratic
instrument after another to ravage DTSA -- taking job actions against and
otherwise harassing some of the organization's most savvy and effective
analysts; cutting back on of DTSA's resources; and reducing its role and clout
in interagency decision-making on controversial export licenses.(1)

Not content with hamstringing DTSA in these ways, Deputy Secretary of Defense
John Hamre further weakened the agency's critical sense of mission -- and its
ability to carry it out -- by imbedding this export control unit into a newly
created entity with the catch-all responsibility for "threat reduction." The
effect has been to add layers of bureaucracy, compounding the Administration's
already considerable impediments to having key licensing actions informed by
national security-minded expertise.

Now, Hamre wants to banish this unwieldy and incoherent Threat Reduction Agency
to "temporary" and other structures at Fort Belvoir, an Army base sufficiently
removed from Washington effectively to preclude DTSA experts' participation in
day-to-day deliberations about technology transfers. The plan calls for
completing this kiss-of-death "consolidation and relocation" by August, just
before next fall's election, thus presenting a new President who may take a
more responsible view of export controls on strategic technologies with a fait
accompli.

The Bottom Line
The United States cannot afford to wait for another, more responsible
administration to come to town to begin correcting some of the damage done by
the Clinton Administration's misfeasance, if not outright malfeasance, with
respect to the export of strategic technologies. Unfortunately, unlike efforts
to correct the underfunding of the military or its over-utilization for non-
combat purposes, it may prove not just costly but exceedingly difficult fully
to redress the military repercussions of having allowed such technologies out
of the proverbial barn.

We must nonetheless start at once with a wholesale reexamination of the
premises and repercussions of the Clinton approach to exporting dual-use
equipment and know-how. At the very least, the Defense Technology Security
Administration must be rehabilitated and given once again a real say in
decisions about strategically sensitive licenses. This will require, among
other things, that DTSA remain a force to be reckoned with in Washington -- not
a spent force consigned to the bureaucratic equivalent of Siberia.

- 30 -

1. See the Center's Decision Brief entitled Profile in Courage: Mike Maloof
Speaks Truth to Power about Clinton's Dangerous Tech Transfers to China (No. 98-
D 192, 30 November 1998); Broadening the Lens: Peter Leitner's Revelations on
'60 Minutes,' Capitol Hill Indict Clinton Technology Insecurity (No. 98-D 101,
6 June 1998); and Profile In Courage: Peter Leitner Blows The Whistle On
Clinton's Dangerous Export Decontrol Policies (No. 97-P 82, 19 June 1997);

NOTE: The Center's publications are intended to invigorate and enrich the
debate on foreign policy and defense issues. The views expressed do not
necessarily reflect those of all members of the Center's Board of Advisors.
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� 1988-1999, Center for Security Policy


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