evidence of the failure to maintainnadvanced systems in the field;n*”Clear indications of the decline innSoviet military prestige.”nBut it wasn’t long before the SIGlEPnwas tossed overboard in a dramaticncoup (see sidebar) that led to theneventual enthronement of WilliamnVerity, a veteran rope salesman, asnchief of the Commerce Department.nIn trips to the Soviet Union and in ansecret meeting with Mikhail Gorbachev,nVerity laid the groundwork fornthe trade policies Mr. Bush has proposednover the first year of his administration,nincluding dropping high-technexport controls.nA look at what the Soviet Union hasnaccomplished by stealing technologynreveals how important such controlsnare. The Pentagon reports that “virtuallynevery Soviet long- and short-termnresearch project for military systems —nwell over four thousand in the laten1970s and well over five thousand innthe early 1980s — is benefiting fromnthe documents and hardware of at leastna dozen Western countries,” most notablynthe United States. In eariy February,nPentagon investigators begannsnooping around to find out whether anSwiss company sold high-tech machinentools and the plans to manufacturenthem to the Soviet Union. Before that,nthey learned that Olivetti sold the Sovi-nI et Union $25 million worth of computer-drivennmachines to help make Yak-n41 vertical-takeofF supersonic fighters.nThe Olivetti case inadvertendy disclosednto the public, Kenneth Timmermannreported in the Wall StreetnJournal, that since 1983 our Europeannallies and Japan have shipped 6,000nembargoed machine tools to the SovietnUnion that were directly diverted tonthe Soviet military. In July, Japanesenauthorities discovered that a companyncalled Prometron illegallv diverted tonEast Germany several 4,500-poundnmachines known as “mask aligners,”nwhich are used to produce semiconductors.nYet another major coup for thenSoviet Union was purchasing a millingnmachine from Toshiba to make supersilentnsubmarine propellers. That salenalone may cost U.S. taxpayers somen$30 billion in>new research to developntechnology superior to what Toshibanhanded over.nThe Soviets have also acquired technologynfor the F-18 lookdown, shoot-ndown radar; air-to-air missiles; armornpiercing tank rounds; cluster bombs;nspace-based photoreconnaissance systems;ninfrared image processors; cruisenmissiles; anti-ballistic missile radar design;nover-the-horizon radar; lasernweapons; and a wide range of powerfulncomputers and peripheral technology.nDemocratization of the East isn’tnthe point. U.S. officials need to knownhow the Warsaw Pact and SovietnUnion will use increased aid and trade.nUnhappily, this fact hasn’t put thenbrakes on the Utopian effort to drop asnmany high-tech export controls as possible.nA small sampling of the CommercenDepartment’s recent decisions takennover the Pentagon’s objections illustratenthe problem. The departmentnapproved Honeywell Corporation’s licensento sell its TDC 3000 computernto the Soviet Union for automatednindustrial control of fertilizer production.nThe Department of Energy usesna similar machine to run its atom bombnplants. The Commerce Departmentnhas also dropped controls on computersnten times more powerful than anythingnour Defense Department evennplans to use. Wire bonders, the machinesnthat can “sew” wire leads ontonsemiconductors the size of a fingernailnin a second, have also been decontrolled.nHigh-grade polysilicon used tonmake computer chips that process informationnat ultrasonic speeds are alsonheaded east.nTop experts inside and outside governmentnsay the Soviet bloc not onlyndoesn’t have the ability to produce thisntechnology indigenously, but alsondoesn’t have the ability to use it in theirncivilian economy. How will the Sovietnbloc’s “private sector,” which needs tonproduce potatoes and meat and shoesnand socks, use or even buy wire bonders,npolysilicon, and computers? Protradengovernment bureaucrats andnbusinessmen can’t say. But even if theyncould, Soviet and East bloc consumersndon’t earn enough money to buy highntechnology or the goods high-tech machinesncan make. As the New YorknTimes reported when McDonald’snopened in Moscow, a Big Mac,ncheeseburger, apple pie, and two milkshakesncosts four days’ salary. As formernAssistant Defense Secretary FranknGaffney notes, the Soviet bloc’s “needsnare for equipment that lends itself tonnnefficient production of consumer goodsnand food — not state-of-the-art warplanes.nThe manufacture of competitivenexport goods can be easily satisfiednwithin the existing” export controlnstandards. In other words, increasingnhigh-tech exports will not free thenWarsaw Pact’s citizens, it will strengthennthe Warsaw Pact’s armies.nNevertheless, Control Data may receivenpermission for the sale of sixnCyber 962 computers, five times morenpowerful than any machine in thenSoviet inventory, supposedly to improventhe safety of civilian nuclearnpower plants. Like Honeywell’s TDCn3000, this technology could easily bentransferred to the military. InnovationnInternational received approval for anjoint venture to assemble one millionnpersonal computers capable of processingnone million instructions per second.nAt $20,000 a whop, this is hardlynthe kind of technology the averagenSoviet schoolboy will use to play flightnsimulator.nJoint ventures with the Soviet government,nwherein Moscow owns. 51npercent and the company owns 49npercent, have become the new way tondo business there. How these statemanagednenterprises forward the causenof the free market is anyone’s guess,nbut American and European companiesnhave leaped at the chance to donbusiness with Moscow’s corporate socialists.nAccording to the Financial Times ofnLondon, more than one thousand jointnventures have been registered in thenSoviet Union. About 330 of the businessesnare West European, 247 arenEast European, 86 are American, andn18 are Japanese. All totaled, the WarsawnPact has signed 3,330 joint-venturenagreements, most of them withnthe West.nApologists for corporate America’snjourney east say most of the jointnventures entail the “service” sector,nreferring to Pushkin Square’s newlynopened McDonald’s or Pepsico’s unfulfilledndream of opening a Pizza Hutnchain. But not all the joint ventures arenso innocent. Combustion Engineering,nStamford, Connecticut’s oil productionnand engineering firm, will investn$2 billion with the Finnish NestenCorporation to operate a petrochemicalnplant in Siberia. According to thenInternational Trade Commission,nMAY 1990/57n