home *** CD-ROM | disk | FTP | other *** search
- <text id=89TT1960>
- <title>
- July 31, 1989: OK To Log On, Comrades
- </title>
- <history>
- TIME--The Weekly Newsmagazine--1989
- July 31, 1989 Doctors And Patients
- </history>
- <article>
- <source>Time Magazine</source>
- <hdr>
- BUSINESS, Page 39
- O.K. to Log On, Comrades
- </hdr><body>
- <p>The U.S. relaxes controls on computer sales to the Soviets
- </p>
- <p> George Bush returned from his first presidential trip to
- Eastern Europe last week eager to bring a little glasnost of
- his own to East-West relations. In that spirit, the Commerce
- Department announced a decision that cleared the way for the
- sale of a broad range of desktop computers to the Soviet Union
- and its allies. Under the plan, such companies as IBM and Apple
- Computer will be able to export machines ten times as powerful
- as older units that may now be shipped without special approval.
- But the sale of top-of-the-line models, notably the Macintosh
- II and IBM models equipped with the high-speed Intel 80386
- microprocessor, will still be subject to strict controls.
- </p>
- <p> The plan exposed a rift within the Administration over
- trade policy. Commerce Department officials argued that easing
- export controls would allow U.S. companies to compete with
- computer makers in such countries as Taiwan and Singapore, which
- already sell relatively advanced machines to Soviet-bloc buyers.
- But Defense Secretary Richard Cheney, who advocates strict
- controls on the transfer of American technology to Moscow,
- warned that the Soviets would use the U.S. computers for
- military purposes. Nonetheless, a Cheney aide said the Defense
- Secretary would not ask Bush to reverse the Commerce Department
- decision.
- </p>
- <p> U.S. computer executives greeted the plan with mild
- interest. While a spokesman for Apple noted that "we are pleased
- with the decision," he added that Soviet-bloc countries lack the
- marketing skills and hard currencies necessary to produce strong
- sales volume. Even so, hackers in Moscow were excited by the
- prospect of more American computers. "This is very important to
- us," said a Soviet computer importer. "Almost every day we have
- customers who come to our office ready to do business."
- </p>
-
- </body></article>
- </text>
-
-