European Stars and Stripes (Newspaper) - February 11, 1990, Darmstadt, Hesse                                Page 18 the stars and stripes business news German Mark not the Buck calling the tune the Dollar slipped downward last week Agassi a seemingly unbeatable German Mark. Then along came talks of a currency Union be tween Easl and West Germany and the Mark wan red and the Greenback gained. It s news from the East that is calling the shots on the financial markets these Days. The formerly favored . Buck according to the currency dealers is no Lunger the big currency on the financial Block. It can slay steady or even Gam. Hut in is the West German mar that s really control Ling rates. The Dollar is Only a Side Issue on the  said Tim Fox of the mid by mry Neth land Montagu Bank in London. Most of the monetary issues Are based outside of  feelings that the West German Economy will Benefit As the result of changes in Eastern Europe put the Mark on the Roll earlier in the week said Fox. Its value he said was further boosted when the soviet communist party Central com Mil acc approved Mikhail Gorbachev s plan to allow other parties to compete for Power with the ruling communists. Gorbachev s move was a historic step and a Bifid appease pro democracy forces in his country. Cood news from the East helps the Mark these  under the theory thai West Germany is in the Best position of any european country to Lake advantage of economic openings in the once Rock solid Iron curtain. The Only thing thai brought the German currency Hack 10 Canh was a proposal by Chancellor Helmut Kohl to study a single currency for the two Ger Many s. That plan caught Many traders by Surprise. There is some concern that a common currency will Only sen e to drag Down the West German Mark. The Days of Complete euphoria for the Mark have gone echoed Roland Scharff treasurer of he Siche land Bank in Frankfurt West Germany. We May Sec i he Dollar above 1.70 Marks  Karl Otto i Ohl. The head of West Germany scentral Bank had formerly opposed the idea of a joint currency As being premature. After Kohl s speech he did a 180-Degrcc turn  said Schraft. Who pointed out that Al though such a currency reunion May be economically unsound in is politically expedient. Kohl and i Ahl have no other Choice. If something in t done for the East German Economy the people will Start coming West .1.000 a Dav. The Easl German problem has to be solved and inc West germans arc going to have 10  said Scharff. In the Short run this will mean increasing problems for inc Mark. In two or three years however it could Lead loan economic  this according to Schraft docs not guarantee dominant Dollar in the meantime. ". Trade figures will be released next Fri  said Fox. What they show will play a decisive role in inc Dollar s  Fox predicts a volatile if somewhat softer Mark. The military Exchange rate in West Germany was set Friday at 1.64 Marks at military banking outlets. Thai rate w ill hold through monday afternoon. The sure and 8lrip�  a trading rules with East pose new Wall for Western firms by Chuck Robert stuff writer although the Iron curtain is disintegrating another Barrier remains for american companies wanting to Trade in Eastern Europe. Some american companies complain that stringent International trading restrictions arc keeping them out of the East bloc but the Bush administration says it is ready to push for easier rules. The rules arc made by the coordinating committee on multilateral Export controls which meets wednes Day in Paris. There the United states will propose reduced restrictions that arc More in line with the Aims of other committee members. American companies and other european manufacturers complain of foot dragging by the 17-nation com Mittee that decides which products can be legally sold to East bloc countries and which ones can t be shipped because they arc deemed to have military applications. It s a process that can take months. The Cocom is composed of All nato member nations except Iceland plus Australia and Japan. The group was formed in 1949 to prevent Western technology from falling into the wrong hands. Klaus Sci bold of Tandon computers in Frankfurt West Germany said he was grateful for an aug. Is decision by the Cocom that cleared the Way for certain personal computers to be delivered to the soviet Union and Hungary. But Sci bold said Taiwan and other countries were already Selling More powerful computers than these personal computers in the East and that put companies governed by the Cocom at a distinct disadvantage. He pointed out that . Companies often had a technological Edge Over countries such us Taiwan but this advantage meant nothing when the Cocom vetoed a Sale. Peter Rasch of Rasch electronics in red Camark West last year Only to be slopped by the Cocom. Rasch said the Cocom should regulate Only those items that could be controlled and whose use was Well defined. Items that make their Way into Eastern Europe through inc Black Market should be taken off restricted lists he said. Bui the lop Leader for . Military forces said the Rush for technological Aid to Eastern Europe should nol come at the expense of Nanal Security. I think one can always examine the Cocom  said Gen. Colin Powell chairman of the . Joint chiefs of staff. I think we have to be very careful about removing All restrictions. Notwithstanding All that s happening in the soviet Union we have to make sure that we re not allowing militarily useful technologies to become too readily available in the soviet Union this week s meeting in Paris is charged with Ham Mering out a unified Export policy for Trade with East Ern Europe. At the session the United states is expected to make some new initiatives for relaxed Trade with the East bloc. The National Security Council presented president Bush with a recommendation calling for support for Reform in Eastern Europe. Strengthened Protection for truly strategic goods and technologies. More rapid modernization of the current control lists. Decontrol of off the shelf commodities readily available to the general Public. The results of this review will form the basis of follow on proposals to modernize Cocom said Bush s press secretory Marlin Fitzwater. We believe tha Cocom can and should adapt to the changes in Eastern Europe in a comprehensive yet flexible  worried business executives said that while in Cocom was slowly deciding whether in was Safe for a company to sell computers to Romania or telecommunications equipment to Poland countries such Asma lays a and Switzerland were closing deals. Thomas Boam Commerce officer with the american Cocom members Australi Belgium Luxembourg Canada Denmark West Germany France Greece Italy Japan the Netherlands Norway Portugal Spain Turkey United kingdom . Cocom s proscribed destinations user Hungary Bulgaria Czechoslovakia Poland East Germany Romania Albania people s Republic of China North Korea mongolian people s Republic Vietnam coordinating committee on multilateral Export controls ass Sharon Kilday consulate in Frankfurt said he believed that the list of prohibited High tech merchandise was continually shrinking but he said Black marketing was still a prob Lem. Small computer chips arc particularly easy to smuggle he said and they can be used to convert medium strength computers into much More sophisticated models with military applications. Decisions handed Down by the Cocom Are not hard and fast rules that apply to entire product lines. In Stead they Are based More on what a specific item s capabilities arc and who the buyer and seller would be in a particular Case. Products arc regulated in three categories atomic Energy munitions and an International list that coven dual use items not included in the other two  International list is the trickiest category and the one that most often befuddled companies. It covers items that can be used for both peaceful and military purposes. Boam  Are such things As computers gallium arse Nide which can be used for developing High definition to pictures or making computer chips capable of withstanding a nuclear blast and beryllium which can be used for production of a Ray tubes or atomic Power. Boam said it also could be argued that items such As corrugated steel served a dual purpose to build Chicken coops or military quonset huts. Despite the rapid changes in Eastern Europe not Al companies Sec East bloc Trade As a profitable Market at this  Harris a general manager in the Export division of Compaq computers a Mph in Munich West Ger Many is More pessimistic. Some countries arc still trying to feed their people he said adding that people standing in line for food Don t buy computer  time May be right one year from  he said but  then we will take it one step at a  Bank giving China $10.4 million to help build subway Washington