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Need some American military technology in a foreign country? Buy it here!

By Robert Sale Jun 10 2009, 05:01 AM

Remember the part in Iron Man where Robert Downey Jr.'s military convoy gets blown up in the desert, and then he realizes that the terrorists blowing him up are doing so with his own missiles? Well, perhaps it's not as stark for GIs in Iraq and Afghanistan, but our military technology is being sold unwittingly to foreign nations and is now available for use against our soldiers and even potentially civilian targets.

Last week, a House Energy and Commerce Subcommittee held a hearing to determine the methods and extent of commercial sales of military technology that could end up in foreign or enemy hands. Giving testimony were two officials from the Government Accountability Office, one from the Department of Commerce, and three from military contractors and reseller companies. High tech military technology, they all said, while heavily regulated in direct export, was dangerously unregulated with regard to domestic sales.

What this means is that foreigners who want U.S. military-grade equipment can't buy it from the manufacturers if they have an out-of-country address. What they can do instead is move to the U.S., buy it here, and then ship it out of the country themselves in a USPS box. Not too hard, right? Well, the GAO decided to find out exactly how hard it was to set up a shell company with a shipping address and a credit card under a fake name, and then buy military equipment and ship it to Southeast Asia. Turns out, it was embarrassingly easy.

The Forensic Audits and Special Investigations arm of the GAO, led by Gregory Kutz, was able to purchase a number of so-called “dual-use” items from military contractors such as body armor, night vision equipment, triggered spark gaps (used in detonating nuclear bombs), gyro chips (used in smart missiles), and even an F-16 engine computer. In more than a handful of instances, all they had to do was provide a name, address, and credit card number to buy them. In other cases, they had to sign a certificate that, as Rep. Greg Walden of Oregon quipped, might as well have read, “I promise not to use this for nuclear, biological, or chemical weapons - honest! Signed, Osama bin Laden.”

Next came another round of chastisement from GAO, courtesy of the Director of Acquisition and Sourcing Management, Anne-Marie Lasowski. She testified on ill-used and outdated export controls, which date back to the Cold War and have on-the-books references to defunct international trade organizations.

The DOC representative and two tech company bosses played a little CYA before ultimately admitting that we need a big-time legislation change and that current policies can leave the U.S. wide open to attacks using our own technology.

The Department of Commerce, nominally in charge of export control, has a Bureau of Industry and Security (BIS) that has limited capability to track shipments of goods to sanctioned or embargoed countries. But legislative limits and poor jurisdictional communication severely hamper its ability to provide acceptable security.

Michael Alvis, Vice President of for Business Development at ITT Industries, called attention to his company's sales record of night vision equipment: only .04% of its night vision manufactures are commercially available to anyone, and the crucial parts aren't even military grade. John Roush, Senior Vice President of Perkin Elmer, touted his company's 2003 “red-flag” citation and sting operation (in cooperation with the BIS) of a fictitious company ordering two hundred triggered spark gaps ultimately destined for Pakistan. Nevertheless, this only further shows that the burden is on the manufacturer or reseller to be ethical about their sensitive technology sales, something which a Binghamton Craigslist seller who advertised military tactical body armor as “a must-have for any gangster” obviously didn't take upon himself.

Even so, that burden is a difficult one to bear properly. Nicholas Fitton, CEO of Section 8 (a military surplus reseller), gave testimony that when he attempted to verify the identity and background of a potential buyer of a discontinued aircraft engine computer, he had limited resources to do so and was forced to be more resourceful in his efforts to conduct an ethical transaction than I think many people would have been in his situation. He called strongly for “more formal guidelines...to be set as to what is expected of resellers and end-users.” He also took the government to task for being resellers being unable to access background checks in the same way gun resellers are. He summed his situation (and the situation of many other military vendors) up as follows: “What we are dealing with is not an inability to enforce security measures, but a lack of policies and procedures to enforce.”

That's just the thing: it would be easy to follow security policy if there were any. This isn't a tough problem to solve, but it's another example of why national security can't be addressed with bigger guns and more walls. It has to be solved by being smarter than the guys who are trying to kill us and constantly examine how they could to get to us and do away with that. Because when you're the biggest, baddest superpower in the world, the number one enemy to your national security is yourself.

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