UNCLASSIFIED Defense Technology Security Administration Mr. Jud Rose DMAG Conference September 28, 2011

POLICY DTSA Mission Ensure U.S. national security interests by protecting critical technology and information while building partnership capacity

POLICY Prevent the proliferation or diversion of technology that could prove detrimental to U.S. national security Strategic Goals

POLICY Engage U.S. allies and partners to increase interoperability and protect critical technology and information

POLICY Facilitate the health of the U.S. industrial base

POLICY ASD Global Strategic Affairs ASD International Security Affairs ASD Homeland Defense & Americas’ Security Affairs ASD Asian & Pacific Security Affairs ASD Special Operations And Low Intensity Conflict DUSD Strategy, Plans, & Forces DASD African Affairs DASD Europe & NATO DASD Russia, Ukraine & Eurasia DASD South & Southeast Asia DASD Afghan., Pakistan & Central Asia DASD Defense Continuity & Crisis Mgmt DASD Western Hemisphere Rep to NATO DASD Nuclear & Missile Defense Policy DASD Cyber Policy DASD Counternarcotics & Global Threats DASD Partnership Strat & Stability Ops DASD Plans DASD Middle East DASD East Asia DASD HD Strategy & Force Planning DASD Countering-WMD DASD Special Ops & CT DASD Strategy DASD Force Development DASD POW/MPA Enterprise Services DSCA DPMO Sr Adv for Arms Ctrl & Strat Stability DTSA Under Secretary of Defense (Policy) Michèle Flournoy Principal Deputy USD (Policy) James Miller Under Secretary of Defense (Policy) Michèle Flournoy Principal Deputy USD (Policy) James Miller USD(P) CoS Peter Verga PDASD: CoS DASD RoL/Detainee Policy DASD Space Policy DASD HDI & DSCA Global Strategic Engagement Team As of August 22, 2011

POLICY 7 Defense Technology Security Administration Licensing Directorate --License Reviews --Commodity Jurisdictions --Voluntary & Directed Disclosures --Regulations Director, Defense Technology Security Administration (DTSA) Mr. James A. Hursch Deputy Director, (DTSA) Mr. Anthony Aldwell -- Aeronautical -- Electronics -- Information & Communications -- Sensors & Lasers -- Missiles & Space -- NBC/Land/Naval/ Materials/Machine Tools -- Space Monitoring Technology Directorate Policy Directorate --Regional Policy --Negotiations & Liaison --Capabilities & Systems --Assessments & CFIUS -- License Monitoring -- Tech Exchanges -- Tech Data Reviews Space Directorate Management Directorate -- Finance -- Administration Contract -- Human Capital -- Security -- Info Technology Integration Military Assistant International Security -- Secretariat NDPC -- FG Disclosure Policy -- Security Surveys -- General Security Agreement -- NATO Security Policy -- FN Pers Assgn Policy -- Monitor International Security Program -- International Security Training Oversight Technology Security & Foreign Disclosure Office -- ATTR SSG Secretariat -- Releases in Principle/Specific -- DoD TSFD Process Oversight -- ATTR SSG TSFD Policies

POLICY 8 Department of Defense Role in Export Controls Defense State (Munitions) Commerce (Dual-Use) Refer Recommend Refer Recommend

POLICY 9 Defense perspective to the process National security review of export license applications Development of multilateral control lists Unique knowledge of systems and capabilities Operators and designers of systems National security dimension to strategic trade Trade, foreign affairs, defense all part of the equation Strategic element to defense cost and awareness Expensive countermeasures Knowledge of existing technologies Department of Defense Role in Export Controls

POLICY 10 U.S. Military Services: U.S. Air Force - International Affairs Division (SAF/IA) U.S. Army – Deputy Assistant Secretary of the Army, Defense Exports & Cooperation (DASA (DE&C)) U.S. Navy and U.S. Marine Corps - Navy International Programs Office (Navy-IPO) DoD: Defense Security Cooperation Agency (DSCA) Joint Chiefs of Staff (JCS/J5) Under Secretary for Policy (USD(P)) Under Secretary for Acquisition, Technology and Logistics (AT&L) National Security Agency (NSA) Other DOD Agencies (DIA, DISA, DLA, NGA, NRO, etc.) DoD Technology Transfer & Export Licensing Community

POLICY 2010 Licenses Reviewed MunitionsDual Use 38,907 Licenses Reviewed19,049 Licenses Reviewed 1 Jan - 31 Dec 2010 Approve Approve with Conditions CJ’s RWA;s Objections 11

POLICY DoD License Review Statistics

POLICY 13 Factors Considered: Policies (region, country & technology) Level of technology (U.S. systems and countermeasures) End-user & end-use history Military operational impact Inter-operability requirements Bilateral, multilateral and international agreements Foreign availability of comparable systems Classified data transfers DoD Review of Technology Transfers Assessing impact on national security

POLICY Technology Security & Foreign Disclosure Review Group 14 DSD established Technology Security and Foreign Disclosure Review Group (TS&FD RG) in July 2010 DSD approved ‘Phase I’ TS&FD RG Findings & Recommendations on 20 Dec 2010 based on these key follow-up actions:  Establish TS&FD Office (TSFDO) as soon as possible  Implement TS&FD RG ‘Good Ideas’ on a rolling basis  Assess consolidating “pipes” SecDef concurred with this approach on Jan 5, 2011 during Security Cooperative Reform (SCR) Task Force briefing

POLICY LO/CLO Approval ? LOR Formulated by Requesting Country (potentially with In- Country Rep) MilDep Level Review of LOR when received from requesting country LOR is sufficient to Process ? Request Additional info No Yes MilDep Establishes /Coordinates Position MilDep Executive concurs ? DSCA Informed, customer contacted No Submit ENDP CNSS Crypto Approved ? NSA Request Approval No Yes No Develop LOA Notify Congress Offer LOA Disclosure Authority? No Yes END START END MilDep Denies Release of Capability Parallel activities Yes No Inertial Nav System? ISN/ MTR MTCR Approval ? COCOM IO Requirement RIP/RIS Revise Configuration/ Deny Release Yes No Parallel Activities Revise Configuration/ Deny Release EW/SIGINT RIP Other OCA Info ? MilDep has established position ? TS&FD Macro Process NSA Yes EW/SIGINT RIS Request Approval NII GPS/AJ Approval ? Yes 15

POLICY NDP (Policy) AT&L TS&FD CIO TS&FD USD(I) TS&FD NII/CNSS/NSA (COMSEC) NSA (EW SIGINT) NGA (GEOINT) DoD TS&FD System Concept -- Macro-Process Flow Gov’t Industry Country Requests Authorized Requestors Yes No IAW Checklist TSFDO 3A Task Applicable ‘Pipes’ 2 Requests IAW Checklist 3B Conduct Specialized Assessment(s) 5 1 Compile..Assess Alternatives.. Recom TSFDO HLDs ATTR SSG HLD Decision Packages Coordinate w/ All Members DOD ATTR SSG (inter- Agency Participants as invited) 6 Package to Board to form Organizational positions 7 Discuss and Decide Unanimously HLDs Inputs 8 SRDs & Potential HLDs If req’d ‘Appeal’ to DSD/SD or Interagency as required (if divergence) As req’d *If Interagency voting not unanimous, NDPC, CNSS, and RSCOM HLD processes apply Final HLDs* If unanimous If NOT unanimous 4 Initial Pipe Decision(s) SRD Decisions (by ‘pipe’) ATTR SSG Co-Chairs

POLICY Night Vision Policy 17 DoD Night Vision Policy updated June 12, Treats NV hardware and technology as a “valuable, limited, sensitive national security resource.” Clarifies roles and responsibilities of DoD NV Stakeholders  DTSA, DSCA, Joint Staff, DIA, AT&L, Army, Navy, Air Force. Identifies DSCA as DoD’s Lead Agency for End Use Monitoring. Revises and expands glossary of night vision-related terms. Director, DTSA authorized to approve exception requests.

POLICY Night Vision Transfer Requests Foreign Military Sales : DSCA sends request to DTSA for review & determination Exceptions to Policy Letter of Advisory Excellent relationship Direct Commercial Sales Hybrid Case (DCS license supporting an FMS case) DTSA review includes analyses by Policy, Technical, Licensing Directorates Analysis: Mission Requirement, End User, Performance Parameters, Quantity, Country Team Assessment, COCOM Endorsement 18

POLICY U.S. Office of Defense Cooperation (ODC)/ Security Cooperation Officers (SCO) Roles ODC/SCO participation in licensing process No formal role; however, serve as eyes/ears on ground Could be approached (questions/support) May be aware of licenses important to foreign companies Communicate through DSCA and with DTSA Advise foreign companies to work with their Washington embassies for advocacy/assistance

POLICY Potential DATT Concerns Responding to license inquiries from foreign entities License originator or “applicant” is a U.S. company DTSA cannot discuss application with anyone other than applicant  Details proprietary (USG & applicant)  Applicant generally has discretion over what to tell foreign participant Encourage foreign companies to talk to applicant for updates

POLICY EXPORT CONTROL REFORM: Current System and Shortcomings U.S. has a robust export control system, but it is rooted in the Cold War System must be updated to address current threats Current system may not allow for timely or flexible cooperation with Allies or partners Prolonged U.S. interagency deliberations Commodity jurisdiction clashes: whether State or Commerce issues the license Past reform efforts have “nibbled around the edges” for too long Short term reform efforts at the detriment of fundamental reform We may have squeezed all efficiencies out of system

POLICY Single Export Enforcement Coordination Agency Single IT System to process all licenses Single Control List Single Export Control Licensing Agency Basic Elements of the New U.S. Export Control System

POLICY TIER I TIER II TIER III Tiering Approach to Export Controls Items and Technology Controlled Only for Anti-Terrorism/Foreign Policy Dual-UseMunitions Items/Technologies “Cascade” to Lower Tiers Exceptions

POLICY Completed Phase I and II Work Dual and Third Country Nationals Rule – New regulation published in May 2011 will reduce licensing requirements on access to ITAR-controlled items Encryption Regulation – New regulation published in June 2010 has significantly reduced technical review and licensing requirements for exports of encryption products Strategic Trade Authorization New license exception published in June 2011 allows license-free exports of a wide range of dual-use items and technologies to Allies and close partners

POLICY Ongoing Phase II and III Work Single List – Munitions List (USML) “Bright Line” Exercise:  Rewriting the USML into a “positive” list and “tiering” controls − Using objective rather than subjective criteria such as design intent or a catch-all; and − Structurally “align” USML and CCL controls so they can be combined into a single list of controlled items by the end of the reform effort.  DoD has taken the lead in this exercise. MilDeps and other DoD components are actively participating in working groups. Dual-Use List (CCL) also being reviewed

POLICY Revised Work Plan Stage 1: ‒ Publish Federal Registry Notices for some USML categories and corresponding CCL categories  Current format, without tiering  Incorporate new “600 series” and former USML parts and components into CCL  Complete by end of 2011 ‒ Publish remaining categories in early 2012 Stage 2 : - Resume tiering and rewrite so lists can be merged into one Bright Line Stages Reworked

POLICY Ongoing Work Export Enforcement Coordination Center at DHS – Scheduled to open in November 2011 Single IT system (based on DoD’s USXPORTS) – Initial operational capability (IOC) between DoD and State completed – IOC with Commerce by end of 2011 – Treasury, Energy, NASA, DHS, and IC expected in 2012 Single Licensing Agency – Legislation required – Administration is preparing a bill to present to Congress

POLICY In Summary: Technology security is an essential part of our national security DTSA helps U.S. ensure the warfighter's edge Disclosure process improvements increase efficiency Export Control Reform essential to both national security and ensuring the edge Defense Technology Security Administration DTSA Website:

POLICY Contact Data Jud Rose Director, DTSA Policy (703) DSN