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U.S. P resident Ronald Reagan, top
pboto, meets Japanese P rime
Minister Yasuhiro Nakasone before
Tokyo Summit last May. West
German delegation, middle pboto,
led by Cbancellor Helmut Kobl,
center. To right is Finance Minister
Gerbard Stoltenberg, credited witb
mucb of Bonn's recent success.
Above, leaders of Free World's
seven leading industrial powers,
plus top two officials of tbe
European Community.
4
Congressio nal protectionism
then, far from protecting certain
industries that probably wouldn't
survive in any case, threatens to
ratchet down the entire world
economy, inch by inch.
" Economic Axis" Developing
Ever since the end of World War
U, the United States has been the
world's dominant economy. Now,
the tables are turning- to the ad–
vantage of America's primary Sec–
ond World War foes, J apan and
Germany.
•~a
~~oo¡¡n¡¡~m
E.
The J apanese yen is powerful,
having increased 30 percent in
value since a year ago. The four
largest banks of the world are
Japanese.
In Western Europe the West
German economy has recovered
from the doldrums of the late '70s
and early '80s to become st rong
again. Bonn ran a surpl us of
US$10.2 billion in its trade with
Washington in 1985.
Observers attribute much of
West Germany's success to
Finance Minister Gerhard
Stoltenberg, who has slashed his
government's deficit by as much as
50 percent. Bonn's government
deficit is the lowest in the Western
industrial ized world.
The United States, meanwhile,
is turning inward . Its politicians
generally blame other nations for
prob lems that are essentially
America's own making. U.S. pol iti–
cians have tried , for example, to
encourage the Japanese public to
save
less
money, to spend more, to
adopt more of the wasteful con–
sumer habits of America, such as
greater credit purchasing.
"Stop being so
successfu/,"
is
the message that seems to come
across from Washington to Tokyo.
Meanwhile, a new "economic
axis" is definitely under construc–
tion.
While this writer was in Japan,
two of J apan's four English-lan–
guage dailies presented in-depth
special reports on the increasing
cooperation between J apan and the
nations of the European Commu–
nity (Common Market).
Unt il recently, the nations of
Western Europe were Jeery of
Japan's growing economic prowess.
They feared the penetration of
their markets by J apanese prod–
ucts, especiall y automotive and
electronic goods.
This view is changing. Since
early 1985, reported the May 7
Japan Times,
"the overall tone of
the EC's policy toward Japan has
considerably softened."
An al tered J apanese approach
toward Europe has much to do
with this change. Tokyo has shifted
its primary trade effor t from ex–
ports to that of investing in Eu–
ropean plants coupled with the ex–
port of technology.
This policy, which means more
jobs for a Europe still battling high
unemployment, is meeting a much
better reception. Member states of
the EC are actually beating a path
to Tokyo in search of investment
capital.
Spain is particularly active in
seeking Japanese help in its drive
to catch up with its fellow EC
members as quickly as possible.
Japan, in turn, sees the l berian
península as a prime European op–
erating base.
(Continued on page 28)
The
PLAIN TRUTH