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February 12, 1987

AGREEMENT BETWEEN US AND BRITISH GOVERNMENTS ON AUDITS BY US COMMERCE DEPARTMENT OF BRITISH COMPANIES

By CBR Staff Writer

It is characteristic of the bloated and ramshackle US federal government bureaucracy that at the same time as the administration is looking to reduce sharply the export restrictions on high-tech goods, the US has reportedly reached an agreement with the British government that will allow the US Commerce Department to conduct security audits of British computer companies that re-export US equipment, a development that is certain to provoke a howl of anger in Parliament and cause a new surge of anti-American feeling in opposition parties.

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