OCTOBER 8, 1985 MEMO TO: SENATOR DOLE FROM: LEN SANTOS SUBJECT: TRADE COMMENTS AT DINNER WITH DELEGATES FROM JAPANESE DIET YOUR PRESENCE HERE TONIGHT IS TESTIMONY TO THE IMPORTANCE WHICH YOUR LEADERS ATTACH TO RESOLVING OUR GROWING TRADE FRICTIONS. I, THEREFORE, WANT TO TAKE THIS OPPORTUNITY TO EXPLAIN THE POLITICS OF OUR TRADING RELATIONSHIP WITH JAPAN. YOU HAVE HEARD THAT CONGRESS IS SEIZED WITH A PROTECTIONIST FERVOR UNLIKE ANY WE HAVE SEEN IN A LONG TIME, AND THAT IS TRUE. YOU HAVE PROBABLY READ EDITORIALS FROM AMERICAN PAPERS STATING THAT CONGRESSIONAL ATTITUDES TOWARD JAPAN ARE AN EXPRESSION OF THIS PROTECTIONISM. THAT IS NOT TRUE. CONGRESSIONAL FRUSTRATION WITH JAPANESE TRADE BARRIERS HAS BEEN GROWING FOR YEARS, LONG BEFORE WE ENTERED THE CURRENT PERIOD OF PROTECTIONIST FERVOR. THE FACT THAT FRUSTRATION WITH JAPAN HAS REACHED A CRISIS AT THE SAME TIME THAT WE ARE SEEING A SURGE OF PROTECTIONIST SENTIMENT IS PARTLY BUT NOT ENTIRELY COINCIDENTAL. PROTECTIONIST SENTIMENT HAS CLEARLY FUELED U. S. ANGER TOWARD JAPANESE TRADE BARRIERS. NONETHELESS, YOU MUST UNDERSTAND THAT THE ATTITUDE 1 OF 2 [page 2] TOWARD JAPAN HAS A SEPARATE SOURCE AND RATIONALE FROM WHAT IS COMMONLY DESCRIBED AS PROTECTIONISM. WHAT IT REALLY COMES DOWN TO IS FAIRNESS. REGARDLESS OF WHETHER OUR BILATERAL TRADE DEFICIT WOULD BE LARGER OR SMALLER, AND REGARDLESS OF WHETHER JAPAN EXPORTS MORE AUTOS, VCRS OR COMPUTER CHIPS TO THE U.S., MOST MEMBERS OF CONGRESS BELIEVE THAT JAPAN HAS TAKEN ADVANTAGE OF THE TRADING SYSTEM WITHOUT BEARING ANY SIGNIFICANT MEASURE OF THE RESPONSIBILITY WHICH THAT SYSTEM PRESUPPOSED. WITHOUT GETTING INTO THE MERITS OF WHETHER YOUR SYSTEM IS IN FACT OPEN AND WHETHER OUR FRUSTRATION IS JUSTIFIED, I DID WANT TO CONVEY THIS MESSAGE. THE MESSAGE IS, DON'T DISMISS OUR CURRENT TRADE FRICTIONS AS MERE PROTECTIONISM. THE WALL STREET JOURNAL AND NEW YORK TIMES MAY GET AWAY WITH THAT KIND OF SIMPLIFICATION, BUT YOU WILL BE MISTAKEN IF YOU ACCEPT THAT FALLACY. 2 OF 2 [page 3] OCTOBER 8, 1985 MEMO TO: SENATOR DOLE FROM: LEN SANTOS SUBJECT: TRADE COMMENTS AT DINNER WITH DELEGATES FROM JAPANESE DIET YOUR PRESENCE HERE TONIGHT IS TESTIMONY TO THE IMPORTANCE WHICH YOUR LEADERS ATTACH TO RESOLVING OUR GROWING TRADE FRICTIONS. I, THEREFORE, WANT TO TAKE THIS OPPORTUNITY TO EXPLAIN THE POLITICS OF OUR TRADING RELATIONSHIP WITH JAPAN. YOU HAVE HEARD THAT CONGRESS IS SEIZED WITH A PROTECTIONIST FERVOR UNLIKE ANY WE HAVE SEEN IN A LONG TIME, AND THAT IS TRUE. YOU HAVE PROBABLY READ EDITORIALS FROM AMERICAN PAPERS STATING THAT CONGRESSIONAL ATTITUDES TOWARD JAPAN ARE AN EXPRESSION OF THIS PROTECTIONISM. THAT IS NOT TRUE. CONGRESSIONAL FRUSTRATION WITH JAPANESE TRADE BARRIERS HAS BEEN GROWING FOR YEARS, LONG BEFORE WE ENTERED THE CURRENT PERIOD OF PROTECTIONIST FERVOR. THE FACT THAT FRUSTRATION WITH JAPAN HAS REACHED A CRISIS AT THE SAME TIME THAT WE ARE SEEING A SURGE OF PROTECTIONIST SENTIMENT IS PARTLY BUT NOT ENTIRELY COINCIDENTAL. PROTECTIONIST SENTIMENT HAS CLEARLY FUELED U.S. ANGER TOWARD JAPANESE TRADE BARRIERS. NONETHELESS, YOU MUST UNDERSTAND THAT THE ATTITUDE 1 OF 2 [page 4] TOWARD JAPAN HAS A SEPARATE SOURCE AND RATIONALE FROM WHAT IS COMMONLY DESCRIBED AS PROTECTIONISM. WHAT IT REALLY COMES DOWN TO IS FAIRNESS. REGARDLESS OF WHETHER OUR BILATERAL TRADE DEFICIT WOULD BE LARGER OR SMALLER, AND REGARDLESS OF WHETHER JAPAN EXPORTS MORE AUTOS, VCRS OR COMPUTER CHIPS TO THE U.S., MOST MEMBERS OF CONGRESS BELIEVE THAT JAPAN HAS TAKEN ADVANTAGE OF THE TRADING SYSTEM WITHOUT BEARING ANY SIGNIFICANT MEASURE OF THE RESPONSIBILITY WHICH THAT SYSTEM PRESUPPOSED. WITHOUT GETTING INTO THE MERITS OF WHETHER YOUR SYSTEM IS IN FACT OPEN AND WHETHER OUR FRUSTRATION IS JUSTIFIED, I DID WANT TO CONVEY THIS MESSAGE. THE MESSAGE IS, DON'T DISMISS OUR CURRENT TRADE FRICTIONS AS MERE PROTECTIONISM. THE WALL STREET JOURNAL AND NEW YORK TIMES MAY GET AWAY WITH THAT KIND OF SIMPLIFICATION, BUT YOU WILL BE MISTAKEN IF YOU ACCEPT THAT FALLACY. 2 OF 2 [page 5] TOAST DINNER FOR NIKAIDO DELEGATION OCTOBER 8, 1985 MR. NIKAIDO, MEMBERS OF THE DELEGATION, MR. AMBASSADOR, LADIES AND GENTLEMEN: A LITTLE MORE THAN SIX WEEKS AGO, MOST OF THE SENATORS HERE WERE IN TOKYO, ENJOYING THE HOSITALITY OF THE JAPANESE GOVERNMENT. TONIGHT, ALL OF US ARE PLEASED TO HAVE THE CHANCE TO RECIPROCATE A BIT OF THAT HOSPITALITY. WE WENT TO TOKYO AS FRIENDS, AND WE ARE PLEASED TO WELCOME YOU HERE IN THAT SAME SPIRIT. WHEN WE WERE IN JAPAN, WE WERE GIVEN A FULL OPPORTUNITY TO SPEAK OUR PIECE. WE SPOKE FRANKLY, AS FRIENDS SHOULD. AND WE TALKED MOSTLY ABOUT THE MAJOR BILATERAL ISSUE BETWEEN US, THE ISSUE OF TRADE. OUR DELEGATION HAD A FULL OPPORTUNITY TO BE HEARD. WHILE YOU ARE HERE, WE WANT YOU TO SPEAK WITH EQUAL CANDOR. AND, WE PLEDGE, WE WILL LISTEN WITH EQUAL ATTENTION. THAT IS THE WAY FRIENDS DEAL WITH EACH OTHER. THAT IS THE WAY PROBLEMS ARE SOLVED. AND I AM CONFIDENT, AS BOTH OF US DISCUSS WITH CANDOR AND THOROUGHNESS THE ISSUE OF TRADE, AND ANY OTHER WHICH [page 6] -2- MIGHT ARISE, WE WILL BOTH DO SO IN A BROADER RECOGNITION: THAT NEITHER OF US HAS A MORE IMPORTANT BILATERAL PARTNER THAN THE OTHER; THAT NEITHER OF US CAN FULLY ACHIEVE OUR GOALS WITHOUT THE FRIENDSHIP AND COOPERATION OF THE OTHER; THAT NEITHER OF US, WORKING ALONE, CAN ACCOMPLISH WHAT BOTH OF US, WORKING TOGETHER, CAN. YOUR VISIT HERE OFFERS ANOTHER OPPORTUNITY FOR US TO TALK TOGETHER AND WORK TOGETHER. WE ARE PLEASED YOU ARE HERE, AND WE LOOK FORWARD TO A CONTINUATION OF THE DIALOGUE WE HAVE BEGUN. IN THAT SPIRIT, LET ME OFFER A TOAST TO PRIME MINISTER NAKASONE AND TO THE FRIENDSHIP BETWEEN OUR COUNTRIES, WHICH THE PRIME MINISTER HAS DONE SO MUCH TO ADVANCE. [page 7] add up to 4 L4 Jap 9 diet 2 int 3 [illegible] Dole Chafee [crossed out: Wilson] Wilson Murkowski Domenici Stevens [upside down: S-230 THE CAPITOL OFFICE OF MAJORITY LEADER United States Senate] Jon Nomins Jo Anne Rod Alan Porter [upside down: BOB DOLE KANSAS] [page 8] United States Senate MEMORANDUM Joyce - For your files - [signature] [page 9] Dinner in honor of The Delegation from the Diet of Japan Menu Pasta Primavera Consomme Brunoise Chablis Souveraine 1981 Darne of Grilled Salmon Sauce Mousseline Artichoke Bottoms with Spinach Souffle Parsley Potatoes Lemon Souffle Glace Miniature Chocolate Dipped Palmiers Coffee, Tea, Decaffeinated Coffee Tuesday, October 8, 1985, 7:30 p.m. The Madison Hotel [page 10] Dinner in honor of The Delegation from the Diet of Japan Menu Pasta Primavera Consomme Brunoise Chablis Souveraine 1981 Darne of Grilled Salmon Sauce Mousseline Artichoke Bottoms with Spinach Souffle Parsley Potatoes Lemon Souffle Glace Miniature Chocolate Dipped Palmiers Coffee, Tea, Decaffeinated Coffee Tuesday, October 8, 1985, 7:30 p.m. The Madison Hotel [page 11] Dinner in honor of The Delegation from the Diet of Japan Menu Pasta Primavera Consomme Brunoise Chablis Souveraine 1981 Darne of Grilled Salmon Sauce Mousseline Artichoke Bottoms with Spinach Souffle Parsley Potatoes Lemon Souffle Glace Miniature Chocolate Dipped Palmiers Coffee, Tea, Decaffeinated Coffee Tuesday, October 8, 1985, 7:30 p.m. The Madison Hotel [page 12] TUESDAY, OCTOBER 8, 1985 MADISON HOTEL 7:30 Reception 8:00 Dinner INVITEES :selected: Dole :unselected: DANFORTH NO :unselected: LUGAR - NO :selected: PACKWOOD - YES :unselected: HEINZ - no :selected: CHAFEE :unselected: SIMPSON - no :unselected: KASSEBAUM - NO :unselected: MURKOWSKI - :unselected: ROTH - NO :selected: DOMENICI :unselected: EVANS - NO :unselected: WILSON wcb :unselected: MCCLURE - NO :unselected: COHEN - wcb :unselected: LAXALT - NO :unselected: GOLDWATER - NO :selected: STEVENS :unselected: LAXALT - NO :unselected: EVANS - NO :selected: Jo-Anne Coe NO :unselected: Howard Greene :selected: Jan Paulk :selected: Rod DeArment :selected: David Pratt BYRD - Conflict INOUYE - wcb MOYNIHAN - no PELL - wcb LONG - w.c.b BENTSEN - he is hosting own dinner BAUCUS - BOREN- NO BRADLEY- MITCHELL - NO PRYOR - NO CRANSTON - NO DODD - NO CAREY - NO ZORINSKY - NO STAFFORD COCHRAN- NO THURMOND HOLLINGS [page 13] United States Senate MEMORANDUM Heinz no resp Chafee no resp Simpson no resp INOUYE - no resp Kassebaum - no murkowski - no resp Roth no [scribbled out] [page 14] leadership G embassy? United States Senate MEMORANDUM Democr. Moynihan Baucus Boren Bradley Mitchell Pryor Cranston Dodd Carey Zorinsky [page 15] United States Senate MEMORANDUM Dole - yes Byrd - no - conflict Lugar - no - Danforth - resp Packwood - yes Pell - no response wife Long - no response Bentsen - prior Commitment Pratt - yes [page 16] .. Evans no ans United States Senate MEMORANDUM Domenici no resp Wilson - no resp McClure - no resp Moynihan no resp Cohen - no resp Laxalt - no Goldwater - no Stevens no resp [page 17] TUESDAY, OCTOBER 8, 1985 MADISON HOTEL 7:30 Reception 8:00 Dinner DOLE [crossed out: PACKWOOD] CHAFEE DOMENICI STEVENS Murkowski Wilson HAVE NOT HEARD FROM: WILSON COHEN INOUYE PELL LONG BAUCUS STAFFORD THURMOND HOLLINGS DANFORTH LUGAR HEINZ SIMPSON KASSEBAUM ROTH EVANS MCCLURE LAXALT GOLDWATER BYRD MOYNIHAN BOREN MITCHELL PRYOR CRANSTON DODD CAREY ZORINSKY [page 18] JO-ANNE L. COE SECRETARY JAN PAULK DIRECTOR SH-231 HART BUILDING WASHINGTON, DC 20510 United States Senate OFFICE OF THE SECRETARY INTERPARLIAMENTARY SERVICES 12:45 p.m. Thurs. Oct. 3 MEMO TO. Joyce FROM: Jan [signature] I have booked a room for Tues. Oct. 8 (7:30 p.m. reception & 8:00 p.m. dinner) in The Madison. Room is "Executive Chambers 1 & 2." Ruth Ann is phoning the invitations to names you gave me. Please give us more asap. As of now, bios & delegation list have not been received. Please page them over as Senators will be asking for them. Menu from last dinner enclosed. (& luncheon) (linda spencer) Should I call Stan Anderson to discuss menu or do we just do it? Also, should I call Robert Witeck about the luncheon or just do it too? When you get the individual appointments done, or a tentative schedule [illegible] typed, please send me a copy. Excuse typing. [page 19] Luncheon in honor of The Delegation from The National People's Congress of the People's Republic of China Menu U. S. Senate Bean Soup Spinach and Mushroom Salad Fresh Alaska Salmon Whole Baby Carrots - Broccoli with Lemon Butter American Apple Cobbler a la Mode Coffee, Tea Semi Chardonnay 1982 Thursday, September 19, 1985, 12:30 p. m. U.S. Capitol [page 20] Welcoming Dinner in honor of The Delegation from The National People's Congress of the People's Republic of China Menu Lobster, Scallops and Shrimp Saule Garnished and Seasoned with Oriental Spices Beef Consomme with Wild Mushrooms Rack of Lamb Regency Batons of Zucchini and Carrot Cauliflower and Rice Lemon Souffle Glace Miniature Chocolate Dipped Palmiers Coffee, Lon Jing Tea, Decaffeinated Coffee Thursday, September 19, 1985, 7:30 p.m. The Madison Hotel