CLINTON SEEKS TO EASE COMPUTER EXPORT CONTROLS

CLINTON SEEKS TO EASE COMPUTER EXPORT CONTROLS    The Clinton Administration has proposed expanding the nations where U.S. companies can ship powerful computers, and easing of encryption exports.
   The administration said Wednesday its hardware-based controls don't affect security because simple home PCs can be strung together to create powerful computing systems.
   “Computer hardware controls are no longer effective,” acknowledged Rudy DeLeon, Deputy Secretary of Defense, during a conference call Wednesday.
   The Clinton Administration's proposal, if approved by Congress, would allow companies to ship systems containing the equivalent of 32 linked Pentium IIIs to nearly all countries.
   Another proposal would move several countries into the United States' Tier 1 category for computer exports, which has been reserved for the nation's closest allies, including Western Europe, Japan, Canada and Mexico. Regions and countries that could be moved up into Tier 1 status are Central and South America, South Korea, most of Africa and Asian nations including Malaysia, Laos and Singapore.
   Easing restrictions would boost the U.S. computer industry, which has argued that export controls have harmed their business.
   Clinton officials said they hope the Bush administration would study the proposal and encourage their adoption.