Statement of Chairman Jim Saxton
Joint Economic Committee
June 17, 1997
Economic Espionage, Technology Transfers and National Security
Ladies and gentleman, good morning.
Thank you all for being here.
The Joint Economic Committee sits in
a very unique position and I would suggest an ideal position to evaluate
past policy and to evaluate those policies' impact on our economy, particularly,
in the context of the legislative intent of the authors of the policies.
The areas of concern that I have learned
of occurred across several administrations in both the areas of high
technology transfer and economic espionage. My goal is to shed light
on these problems.
I am sure that those responsible for
these policies formulated them with the best of intentions. However,
those intentions may not have manifested themselves as expected in this
new and changing reality of a former Soviet Union, an emerging Asia
and a struggling, unstable Third World.
I am pleased to welcome to the committee
an extremely knowledgeable group of panelists.
Dr. Peter Leitner is the author of
a new book entitled "Decontrolling Technology: Creating the Military
Threat for the 21st Century." I would like to make it clear that Dr.
Leitner will testify as the author of that book and not in his official
capacity as a Foreign Trade Advisor for the Department of Defense. Additionally,
Dr. Leitner is the author of the book "Law of the Sea Treaty" which
also highlights concerns about mandated high technology transfer. Dr.
Leitner's professional background also includes serving as a senior
licensing officer for U.S. exports to various proscribed countries including
China, Libya, Iraq, former Warsaw Pact countries, Iran, and India. Dr.
Leitner is currently DoD's representative to the interagency Subcommittee
on Nuclear Export Controls.
Our second panelist is Lt. Gen. Robert
Schweitzer (Ret). General Schweitzer retired from the United States
Army after 36 years of service with assignments including: Director
of Strategy, Plans and Policy; Deputy Chief of Staff for Operations
and Plans; National Security Defense Group Director; and the Chief of
the Policy Branch of SHAPE in Belgium. General Schweitzer has received
numerous awards and decorations including the Army Distinguished Service
Cross, the Defense Distinguished Service Medal, the Army Distinguished
Service Medal, three Silver Stars, two Defense Superior Service Medal,
two Legion of Merits, the Distinguished Flying Cross, the Soldiers Medal,
the Bronze Star with Valor device (three additional awards), Air Medal
with Valor device (20 additional awards), seven Purple Hearts, and two
Army Commendation Medals.
General Schweitzer will testify today
about the proliferation of a devastating new weapon developed by the
former Soviet Union and is currently in enhanced development today in
Russia, with previous systems being sold by Russia. The weapon is the
Radio Frequency Weapon on Electromagnetic Pulse weapon used, among other
things to cripple computer capability. It has only been in the last
few weeks that the information has been declassified about EMI. Previously,
only those with the highest security clearance even knew about this
weapon system in any detail.
Our third panelist is Mr. John Fialka.
Mr. Fialka is a well-known and respected reporter for the Wall Street
Journal. Mr. Fialka is the author of "War by Other Means," an important
but disturbing book on high tech transfer and Foreign Intelligence Services
conducting espionage in the United States. After a brief stint at the
National Petroleum Refiners Association, Mr. Fialka began his journalism
career at the Baltimore Sun and then moved on to the Washington Star.
In 1981, Mr. Fialka moved to the Wall Street Journal and has
worked both in the London bureau and in his current position in Washington.
Mr. Fialka has been awarded numerous honors from such organizations
as the American Bar Association, the National Science Writers Association,
the National Headliner, and Worth Bingham. Additionally, Mr. Fialka
is the author of the book "Hotel Warriors" which is an analysis of the
press coverage of the Persian Gulf War.
Our final panelist is Kennneth Flamm.
Mr. Flamm has been a Senior Fellow in the Foreign Policy Studies program
at the Brookings Institute since 1995, a position he also held from
1987 to 1993. From 1993 to 1995, Mr. Flamm served as Principal Deputy
Assistant Secretary of Defense for Economic Security and Special Assistant
to the Deputy Secretary of Defense fro Dual Use technology Policy. At
Brookings, Mr. Flamm has focused much of his research on international
competition in high technology industries.
Let me add on final note. The people
of our country owe a collective debt of gratitude to the men and women
who serve this country in our law enforcement and intelligence services,
and especially those dedicated Asian Americans without which the security
of this country could not be guaranteed. Over 20 countries conduct espionage
against the United States. Let me make it perfectly clear that the criminal
actions of a few do not reflect the character, honesty, and loyalty
of ethnic Americans - without whom these spies would not be apprehended.
I look forward to the enlightening
testimony of each of our panelists.