FAS

CRS on Exon-Florio, Defense Transformation

03.01.06 | 1 min read | Text by Steven Aftergood

The Exon-Florio Act of 1988, which permits the President to block foreign takeover of certain types of U.S. companies on national security grounds, has been in the news lately in connection with the proposed acquisition of six U.S. ports by Dubai Ports World.

Some useful background on that statute is provided by the Congressional Research Service in “The Exon-Florio National Security Test for Foreign Investment,” updated February 23, 2006.

The substance of the Pentagon’s notion of “defense transformation” and the spin surrounding it are considered in another newly-updated CRS report.

“Some observers are concerned that the Administration’s regular use of the term transformation has turned the concept of transformation into an empty slogan or buzz-phrase.”

“Other observers are concerned that the Administration has invoked the term transformation as an all-purpose rhetorical tool for justifying its various proposals for DOD, whether they relate to transformation or not, and for encouraging minimal debate on those proposals by tying the concept of transformation to the urgent need to fight the war on terrorism.”

See “Defense Transformation: Background and Oversight Issues for Congress,” updated February 17, 2006.