THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release December 4, 2000
- - - - - - -
NATIONAL COMMISSION ON THE USE OF OFFSETS IN
DEFENSE TRADE AND PRESIDENT'S COUNCIL ON THE USE
OF OFFSETS IN COMMERCIAL TRADE
By the authority vested in the President by the Constitution and the
laws of the United States of America, including Public Law 106-113 and the
Federal Advisory Committee Act, as amended (5 U.S.C. App. 2), and in order
to implement section 1247 of Public Law 106-113 (113 Stat. 1501A-502) and
to create a parallel "President?s Council on the Use of Offsets in
Commercial Trade," it is hereby ordered as follows:
Section 1. Membership. Pursuant to Public Law 106-113, the "National
Commission on the Use of Offsets in Defense Trade" (Commission) comprises
11 members appointed by the President with the concurrence of the Majority
and Minority Leaders of the Senate and the Speaker and the Minority Leader
of the House of Representatives. The Commission membership includes: (a)
representatives from the private sector, including one each from (i) a
labor organization, (ii) a United States defense manufacturing company
dependent on foreign sales, (iii) a United States company dependent on
foreign sales that is not a defense manufacturer, and (iv) a United States
company that specializes in inter-national investment; (b) two members from
academia with widely recognized expertise in international economics; and
(c) five members from the executive branch, including a member from the:
(i) Office of Management and Budget, (ii) Department of Commerce, (iii)
Department of Defense, (iv) Department of State, and (v) Department of
Labor. The member from the Office of Management and Budget will serve as
Chairperson of the Commission and will appoint, and fix the compensation
of, the Executive Director of the Commission.
Sec. 2. Duties. The Commission will be responsible for reviewing and
reporting on: (a) current practices by foreign governments in requiring
offsets in purchasing agreements and the extent and nature of offsets
offered by United States
and foreign defense industry contractors; (b) the impact of the use of
offsets on defense subcontractors and nondefense industrial sectors
affected by indirect offsets; and (c) the role of offsets, both direct and
indirect, on domestic industry stability, United States trade
competitiveness, and national security.
Sec. 3. Commission Report. Not later than 12 months after the
Commission is established, it will report to the appropriate congressional
committees. In addition to the items described in section 2 of this order,
the report will include: (a) an analysis of (i) the collateral impact of
offsets on industry sectors that may be different than those of the
contractor paying offsets, including estimates of contracts and jobs lost
as well as an assessment of damage to industrial sectors; (ii) the role of
offsets with respect to competitiveness of the United States defense
industry in international trade and the potential damage to the ability of
United States contractors to compete if offsets were prohibited or limited;
and (iii) the impact on United States national security, and upon United
States nonproliferation objectives, of the use of co-production,
subcontracting, and technology transfer with foreign governments or
companies, that results from fulfilling offset requirements, with
particular emphasis on the question of dependency upon foreign nations for
the supply of critical components or technology; (b) proposals for
unilateral, bilateral, or multilateral measures aimed at reducing any
detrimental effects of offsets; and (c) an identification of the
appropriate executive branch agencies to be responsible for monitoring the
use of offsets in international defense trade.
Sec. 4. Administration, Compensation, and Termination. (a) The
Department of Defense will provide administrative support and funding for
the Commission and Federal Government employees may be detailed to the
Commission without reimbursement.
(b) Members of the Commission who are not officers or employees of the
Federal Government will be compensated at a rate of basic pay prescribed
for level IV of the Executive Schedule under section 5315 of title 5,
United States Code, for each day (including travel time) during which such
member is engaged in performance of the duties of the Commission. Members
of the Commission who are officers or employees of the Federal Government
will serve without compensation in addition to that received for their
services as officers or employees of the Federal Government.
(c) Members of the Commission will be allowed travel expenses,
including per diem in lieu of subsistence, under subchapter 1 of chapter 57
of title 5, United States Code, while on business in the performance of
services for the Commission.
(d) The Commission will terminate 30 days after transmitting the
report required in section 1248(b) of Public Law 106-113 (113 Stat.
Sec. 5. Establishment and Membership. (a) There is established,
pursuant to the Federal Advisory Committee Act, as amended (5 U.S.C. App.),
the "President?s Council on the Use of Offsets in Commercial Trade"
(b) The Council shall be composed of the appointed members of the
Commission or their designees.
Sec. 6. Duties and Report of the Council. The Council shall review
and report to the President, through the Director of the Office of
Management and Budget, on the use of offsets in commercial trade, including
their impact on the United States
defense and commercial industrial base. The Council shall consult with
and, as appropriate, provide information to the Commission.
Sec. 7. Administration. (a) The Department of Defense shall provide
administrative support and funding for the Council.
(b) The heads of executive departments and agencies shall, to the
extent permitted by law, provide to the Council such information as it may
require for the purpose of carrying out its duties.
(c) Members of the Council shall serve without compensation.
Sec. 8. General. (a) Notwithstanding any other Executive Order, the
functions of the President under the Federal Advisory Committee Act, as
amended, except that of reporting to the Congress, that are applicable to
the Council, shall be performed by the Department of Defense in accordance
with guidelines that have been issued by the Administrator of General
(b) The Council shall terminate on the date of the transmission of the
report required by section 1248(b) of Public Law 106-113 (113 Stat.
WILLIAM J. CLINTON
THE WHITE HOUSE,
December 4, 2000.
# # #