National Defense Authorization Act for Fiscal Year 2012

Floor Speech

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Mr. ROHRABACHER. Mr. Chairman, my amendment focuses on an issue that reflects a concern not only for our national security, but also for the prosperity of our country. I would like to thank the chairman and ranking member for agreeing to discuss this important issue with me tonight as part of my time. And I do intend at the end of this discussion, which should be considered a colloquy, my intent is to withdraw my amendment.

What we are talking about is an important issue. We are talking about the President's authority to move satellites and related components from the U.S. Munitions List to the Commerce Control List. And this may sound rather bureaucratic, but it means whether or not there is going to be the transfer and sale of technology that we have developed with billions of dollars of Federal investment that is very important to our technology and the jobs in California, but also very important to our national security if these technologies would be put into the wrong hands.

We have heard expert witness testimony that current regulations are harmful to national security, cost American jobs, and encourage other nations to develop competing technologies. Since Congress placed these items on the U.S. Munitions List--meaning satellites and these other technologies that we're referring to today--our worldwide market share for the manufacture of satellites and components has dropped dramatically.

It has been widely reported that while U.S. firms accounted for 73 percent of the world market for commercial satellites in 1998, that figure has since dropped below 30 percent. Global satellite manufacturers often pursue alternate ITAR-free sources, especially for commodity components and related items, simply to eliminate any risks associated with licensing delays, even if the export license is likely to be approved by U.S. regulators.

The U.S. regulatory environment has particularly affected small U.S. satellite suppliers, which lack the organizational structure, staff, and marketing resources to offset the added burden of export control barriers in such a close, competitive climate in this high-tech business.

Current U.S. satellite export controls are not slowing foreign space capabilities, but encouraging them. Foreign manufacturers now market ITAR-free satellites, and we are encouraging non-U.S. satellite research and development with the controls that are in place. But the national security concerns that led Congress to create the current regulatory wall are still in place, and yet there are significant concerns existing regarding China, Iran, North Korea, Venezuela, and other terrorist-supporting states. We must continue to prohibit the transfer of these technologies to these nations, and we must prohibit U.S. satellite sales, I believe, to China. We especially must not permit U.S. satellites to be launched on Chinese rockets.

Last year, the House endorsed the removal of satellites and components from the Munitions List, but it was clearly stated that there was an exception barring any transfers to generous nations and allowing no launches of American satellites on Chinese rockets. That should remain our position.

At this time, I would yield several minutes to Mr. McKeon, the chairman of the Armed Services Committee.

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