The Committee is greatly concerned about the international Y2K picture. Several countries of strategic and economic importance to the U.S. are severely behind in Y2K remediation efforts. Regions of the world of most concern to the Committee are Eastern Europe, Africa, and parts of Asia and South America. When considering strategic and economic factors, and the status of Y2K remediation efforts within specific countries, the Committee’s greatest concerns lie with China, Russia, Italy, and several of the countries from which the U.S. imports oil.
Severe long- and short-term disruptions to supply chains are likely to occur. Such disruptions may cause a low-to-moderate downturn in the economy, particularly in those industries that depend on foreign suppliers. In addition, there may be a request for humanitarian relief from developing countries that have not addressed the Y2K problem.