Thursday April 26 7:11 PM ET

China Hovers Over Senate Export Controls Debate

By Doug Palmer

WASHINGTON (Reuters) - With a U.S. spy plane still in the hands of the Chinese government, key U.S. senators on Thursday threatened to block legislation aimed at loosening controls on high-tech computers and other ``dual use'' goods that could be used for military purposes.

Opponents said Senate approval of the Export Administration Act, which cleared the Senate Banking Committee last month on a 19-1 vote and has the support of the Bush administration, would ''send the wrong signal'' at this time.

They also expressed concern the legislation went too far to loosen export controls on dual use goods.

The $80 million EP-3 spy plane that collided with a Chinese fighter jet earlier this month remains on China's Hainan Island, where it made an emergency landing.

Senate Intelligence Committee Chairman Richard Shelby, an Alabama Republican, said the United States had already suffered national security losses and urged the Senate not to worsen the situation by loosening export controls.

``Chinese technicians are picking the plane apart, and I don't believe they're looking for loose change under the seat cushions,'' Shelby said. ``I fear the Senate is signaling to China that we put our commercial interests ahead of our national security.''

Other powerful committee chairmen, including Senate Armed Forces Chairman John Warner, a Virginia Republican; Senate Commerce Committee Chairman John McCain, an Arizona Republican; and Senate Governmental Affairs Chairman Fred Thompson, a Tennessee Republican, also lined up against the bill.

Warner said he wanted the Bush administration to outline how it would implement key portions of the bill before the Senate moved forward on the legislation.

Supporters said the Export Administration Act would strengthen national security by allowing the government to concentrate on goods it has the best chance of controlling.

Senate Banking Committee Chairman Phil Gramm, a Texas Republican, said current U.S. controls are focused too much on goods that are easily available in electronic stores around the world.

``Rather than to waste our time and energy on products that are sold by the millions, we try to focus our attention...to deal with those technologies (where) we have some realistic hope of being successful,'' Gramm said.

The legislation is strongly supported by U.S. high-tech computer manufacturers, who complain current restrictions are outdated and allow foreign competitors to take away sales.

A vote on the bill is not expected before next week.

-- Anonymous, April 26, 2001