U.S. Controls Hamper Trade With Allies

WASHINGTON—The Japanese buy infrared, optical lasers from the American firm of Spectra-Physics for the cutting, welding and heat treating of various manufactured products. But each time any of its lasers need servicing or spare parts, Spectra-Physics has to navigate the slow and complex U.S. export licensing procedure that was created for another purpose, namely, to ensure that certain types of advanced technology do not pass to the Soviet Union and its allies. Although the San Jose-based

Written byJeffrey Mervis
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Although the San Jose-based company usually manages to satisfy its customers, said President Herbert Dwight Jr., the export controls have hurt its relationship with some clients and cost it additional sales in Japan and throughout Europe. "I support the need to deny the Soviets access to critical technology," said Dwight, an electrical engineer who founded the company in 1961. "But by doing it unilaterally we're shooting ourselves in the foot. And in the process we're restricting trade with our Western allies."

Last month a panel of the U.S. National Academy of Sciences concluded that the present export controls are not working as they were meant to because they "fail to promote both military security and economic vitality." The panel, on which Dwight served, said small and medium businesses (SpectraPhysics had annual sales last year of $220 million and employs 2,500 people) have been particularly hard-hit because their size makes them ...

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