Meeting with Carla Hills, May 9, 1990
Item
of 1
- Other Media
-
lead_398_027_all_tr.txt - Transcription (Scripto)
- Read Full Text Only (TXT)
- Extent (Dublin Core)
- 14 pages
- File Name (Dublin Core)
- lead_398_027_all
- Title (Dublin Core)
- Meeting with Carla Hills, May 9, 1990
- Date (Dublin Core)
- 1990-05-09
- Date Created (Dublin Core)
- 1990-05-09
- Congress (Dublin Core)
- 101st (1989-1991)
- Policy Area (Curation)
- Foreign Trade and International Finance
- Creator (Dublin Core)
- Dole, Robert J., 1923-2021
- Record Type (Dublin Core)
- correspondence
- Names (Dublin Core)
- See all items with this valueHills, Carla Anderson, 1934-
- Rights (Dublin Core)
- http://rightsstatements.org/vocab/CNE/1.0/
- Language (Dublin Core)
- eng
- Collection Finding Aid (Dublin Core)
- https://dolearchivecollections.ku.edu/index.php?p=collections/findingaid&id=26&q=
- Physical Location (Dublin Core)
- Collection 007, Box 398, Folder 27
- Institution (Dublin Core)
- Robert J. Dole Institute of Politics, University of Kansas, Lawrence, KS
- Archival Collection (Dublin Core)
- Robert J. Dole Republican Leadership Collection, 1985-1996
- Full Text (Extract Text)
-
BREAKFAST MEETING WITH CARLA HILLS
WEDNESDAY, MAY 9, 1990 - 8:30 a.m. S-230
Dole (check mark)
Bond (handwritten: late 8:35) (check mark)
Danforth (check mark)
Domenici (handwritten: prayer breakfast) (check mark)
Murkowski (check mark)
Simpson (check mark)
Stevens (check mark)
Wallop (crossed out)
Mary Tinsley - Congressional Affairs, USTR (check mark)
Carolyn Seely - Office of the Republican Leader (check mark)
handwritten: Sheila Burke (check mark)
TO: Senator Dole
FROM: Bob Lighthizer
SUBJECT: Trade Meeting
I understand that you are meeting with Carla Hills today. I would like to offer a couple of very brief thoughts.
1. We have had 7 or 8 "major trade opening" packages from the Japanese during the last 9 years. The net effect of all of them has not reduced the trade deficit we have with Japan by one nickel. SII will be no different. I think many of their officials were surprised that they could play the "trade opening" trick on us yet again.
2. The decision not to name Japan under Super 301 was a major mistake. The foreign policy people won out again over the trade policy people.
3. There is nothing that I have seen in the Uruguay Round that will change the status quo to benefit us. I believe that the Japanese (and some of their surrogates) would like to trade vague, general agreements in various parts of the Round for specific changes in the antidumping and countervailing duty laws that will make U.S. AD and CVD laws ineffective. I hope you will tell Carla that Congress will not tolerate a gutting of these crucial trade laws.
4. The Uruguay Round is an important part of helping our market trading system. Unfortunately, Japan largely does not have a market economy (rather it has & political economy). The trade policy that we need with Japan (and Japan alone) is one based on results -- a reduction in the $50 billion trade deficit. The religious views of the right on markets has not let the administration come to grips with this problem. If we do not see a major improvement in the bilateral trade balance with Japan, I hope that Congress will consider legislation that will mandate a reduced deficit.
5. The same people who have always said that budget deficits don't matter also say that trade deficits don't matter.
MAY 8, 1990
TO: SENATOR DOLE
FROM: CAROLYN SEELY (handwritten: Carolyn)
SUBJECT: CARLA HILLS BREAKFAST
The Administration and USTR have effectively staked everything on a favorable outcome in the GATT Uruguay Round negotiations which end this year. Not only did the President designate the major GATT issues: agriculture, subsidies, services, intellectual property, investment, market access and enforcement, as his trade priorities for 1990, but he declined to utilize his Super and Special 301 powers aggressively in order not to jeopardize the U.S. position in the Round.
Nevertheless, the GATT negotiations appear to have reached a dangerous impasse. At a ministerial meeting this weekend, Ambassador Hills was not able to reach acceptable agreements on any of the contentious issues. For example, as a precondition for entering these negotiations the U.S. and the Europeans devised a protocol committing themselves to gradual, progressive reductions in agricultural subsidies. Immediately, the two parties issued different interpretations as to whether this commitment implied the eventual elimination of all subsidies. That disagreement persists today.
Concern over the seeming lack of progress in the GATT is fueling the view that the U.S. is again letting Japan off the hook. This view contends that even the apparently sweeping interim report from the SII negotiations will produce few concrete gains in U.S./Japan trade -- that the only way to deal with Japan is through precise numerical targets where failure to meet a commitment can be clearly quantified.
Ambassador Hills should be asked to comment on the ministerial meeting and on the growing perception that we cannot achieve a meaningful GATT agreement in important areas, such as agriculture. She should also be asked how we will measure Japan's compliance with the recent SII agreement in response to the renewed criticisms of U.S. leniency toward Japan.
Other pending controversial trade issues are the recently negotiated Soviet trade agreement and the renewal of China's Most Favored Nation status. (The President must decide whether to send up a renewal order by June 3.)
APRIL 27, 1990
TO: SENATOR DOLE
FROM: CAROLYN SEELY
SUBJECT: TRADE DESIGNATIONS
The White House and USTR will announce the Super and Special 301 designations shortly. Only India will be cited under Super 301 for the same barriers as last year: controls on foreign investment and insurance. USTR felt that this designation was unavoidable because India has refused to negotiate on these issues. (Sanctions derived from last year's designation become mandatory on June 16.)
Under Special 301 (failure to protect intellectual property) , there are no designations and only four priority watch countries: Brazil, China, India and Thailand. Nineteen additional countries are on the watch list: Argentina, Canada, Chile, Columbia, Egypt, Greece, India, Italy, Japan, Korea, Malaysia, Pakistan, Philippines, Saudi Arabia, Spain, Taiwan, Turkey, Venezuela and Yugoslavia.
No designations were made under Title 7 (discrimination in procurement), but the European Community, West Germany, Japan and Austria are on the watch list there.
Finally, USTR has named the major Uruguay Round negotiations, Agriculture, Services, Intellectual Property, Market Access, and Subsidies, as its trade priorities for 1990.
APRIL 6, 1990
TO: SENATOR DOLE
FROM: CAROLYN SEELY
SUBJECT: INTERIM REPORT ON STRUCTURAL IMPEDIMENTS INITIATIVE
The U.S. /Japan inter-agency negotiators have released an interim report on their respective commitments toward eliminating structural barriers which affect the persistent U.S. trade and balance of payments deficits with Japan. A final report is due in July. The report outlines measures to be taken in each of the six areas identified by the U.S. and seven areas identified by Japan as structural barriers.
Specifically, Japan has agreed to take the following actions:
Savings and Investment. (The U.S. alleged that Japan's infrastructure investment is too low relative to its savings. ) The Japanese agreed to implement a 10-year plan specifying increases in public investment, including a fast-track plan for eight sectors (housing, airports, parks, sewers, ports, etc.) . They also agreed to permit revolving consumer credit cards and longer banking hours to promote consumer spending.
Because Japan has made no specific commitments as to the levels or timing of this increased spending, the V.S. is taking something of a wait and see attitude. Japan has agreed to provide specifics by the time of the final report in July.
Exclusionary Business Practices. (The U.S. alleged that collusion, group boycotts, a "buy Japan" attitude, etc. have impeded foreign competition.) Japan has agreed to strengthen enforcement of the Antimonopoly Act (its antitrust law), increase penalties and public disclosure of violations to a level which will have a deterrent effect and encourage private enforcement actions.
In addition, Japan has agreed to public disclosure of its industrial policy ( "visions") resulting from business/agency working groups; to speed-up its patent application process to international norms; to provide fair procurement policies and revise fair competition codes to allow promotional practices, such as 2-for-1 premiums, to introduce new products.
Again, the U.S. applauds these commitments and is waiting for results.
-2-
Keiretsu (interlocking business relationships and barriers to foreign investment). Japan has agreed to promote foreign investment by abolishing notification requirements and government restrictions based on economic grounds and by extending the time limits for tender offers and other takeovers. Second, Japan will improve disclosure of related party transactions and restrict cross-ownership which impedes competition.
The U.S. wants Japan to build on these commitments and also strengthen shareholder rights.
Land use. Japan will review its land use policy, including tax assessments and inheritance taxes which favor agriculture in urban areas and will consider penalties for idle land. In addition it will improve infrastructure to support additional housing and will review zoning, building limits and lessor/lessee laws.
The U.S. believes that improvements in affordable housing will increase consumer spending in Japan and increase imports. It wants tax reforms (including penalty taxes) and legislation.
Distribution System. Japan has agreed to shorten the approval process for establishment and expansion of large retail stores (Toys 'R Us) to one year (from 10), to implement 24-hour import clearance and improve airports, harbors and roads.
This may require legislation, and the U.S. is awaiting action.
Pricing. This commitment is a recognition that price differentials (Japan's consumer prices are 40% higher than prices for identical goods in the U.S.) reflect the existence of trade barriers. Japan will continue to monitor prices and will attempt to rationalize pricing in many areas.
U.S. COMMITMENTS
The U.S. commitments basically reflect the President's budget. The U.S. commits to deficit reduction, phasing out the reliance on social security as outlined in the budget, to the President's savings incentives, r&d incentives, capital gains rate reductions, product liability reform, relaxation of the antitrust laws for manufacturing joint ventures and education and job training programs. The U.S. is also committed to both promoting exports and welcoming foreign investment.
BREAKFAST MEETING WITH CARLA HILLS
WEDNESDAY, MAY 9, 1990 - 8:30 a.m. S-230
Dole (handwritten: oatmeal bran muffins)
Danforth
Domenici
Murkowski
Simpson
Stevens
Wallop
handwritten: Bond - arrive at 8:45
Mary Tinsley - Congressional Affairs, USTR
Carolyn Seely - Office of the Republican Leader (handwritten: oatmeal, fruit cup)
handwritten: 12 Sheila Burke - oatmeal fruit cup
handwritten notes on page:
3 oatmeal
9 (8 crossed out) french toast with bacon
12 fruit cup
coffee/tea
6 extra muffins
small floral arrangement
Senator Bond
eddy kerrick
mary tinsley
blue 1990
(illegible)
DC 421-758
May 1, 1990
TO: SENATOR
FROM: JOYCE
RE: BREAKFAST MEETING
handwritten: U.S.T.R
We have scheduled Carla Hills for a breakfast meeting on Wednesday, May 9, 1990 at 8:30. handwritten: S-230
Suggested Senators:
handwritten: Y Dole
Packwood (handwritten: conflict - will check)
Wilson (handwritten: N, w.c.b. - out of time)
Danforth (handwritten: Y)
Heinz (handwritten: N, wcb)
Domenici (handwritten: Y)
Stevens (handwritten: Y)
Murkowski (handwritten: Y)
McCain
Gorton
Armstrong (handwritten: wcb - 45941)
handwritten notes on page:
Bond - wcb
Y Simpson - wcb
wcb Roth - checking NO
Y Wallop
Mary Tinsley - Congressional Affairs
Carolyn
Sheila
11:30-
12:30-1:00
HER EXCELLENCY
KAZIMIERA
PRUNZKIENE
BREAKFAST MEETING WITH CARLA HILLS
WEDNESDAY, MAY 9, 1990 - 8:30 a.m. S-230
Dole
Danforth
Domenici
Murkowski
Simpson
Stevens
Wallop
Mary Tinsley - Congressional Affairs, USTR
Carolyn Seely - Office of the Republican Leader
BREAKFAST MEETING WITH CARLA HILLS
WEDNESDAY, MAY 9, 1990 - 8:30 a.m. S-230
Dole
Danforth
Domenici
Murkowski
Simpson
Stevens
Wallop
Mary Tinsley - Congressional Affairs, USTR
Carolyn Seely - Office of the Republican Leader
BREAKFAST MEETING WITH CARLA HILLS
WEDNESDAY, MAY 9, 1990 - 8:30 a.m. S-230
Dole
Danforth
Domenici
Murkowski
Simpson
Stevens
Wallop
Mary Tinsley - Congressional Affairs, USTR
Carolyn Seely - Office of the Republican Leader
BREAKFAST MEETING WITH CARLA HILLS
WEDNESDAY, MAY 9, 1990 - 8:30 a.m. S-230
Dole
Danforth
Domenici
Murkowski
Simpson
Stevens
Wallop
Mary Tinsley - Congressional Affairs, USTR
Carolyn Seely - Office of the Republican Leader
BREAKFAST MEETING WITH CARLA HILLS
WEDNESDAY, MAY 9, 1990 - 8:30 a.m. S-230
Dole
Danforth
Domenici
Murkowski
Simpson
Stevens
Wallop
Mary Tinsley - Congressional Affairs, USTR
Carolyn Seely - Office of the Republican Leader
entire page handwritten:
Carla Hills ~ U.S.T.R.
left of page: Dole
top of page: Simpson, Stevens, Domenici, Murkowski, Seely
right of page: Burke
bottom of page: Hills, Danforth, Wallop, Bond, Tinsley
arrows drawn from Wallop to Bond, Bond to Murkowski, and Murkowski to Wallop
May 1, 1990
TO: SENATOR
FROM: JOYCE
RE: BREAKFAST MEETING
We have scheduled Carla Hills for a breakfast meeting on Wednesday, May 9, 1990 at 8:30.
Suggested Senators:
Packwood
Wilson
Danforth
Heinz
Domenici
Stevens
Murkowski
McCain
Gorton
Armstrong
Not viewed