Basic HTML Version
PAGE 8
PASTOR GENERAL'S REPORT, APRIL 11, 1985
are slicing us neatly and thinly off like a piece of sashimi, which they so
elegantly do," added Senator John Heinz, Republican of Pennsylvania. Heinz
also said at a March 8 Senate hearing that when the "Japanese get their
little fork into us--or chopsticks--they really do stick it to us."
Japanese-Americans in government and business have been deeply concerned
over the racial overtones of these and other remarks.
Senator Spark
Matsunaga, D-Hawaii, one of four Americans of Japanese descent serving in
Congress, says that there is "so much emotionalism" in the trade debate
that the rhetoric sometimes reminds him of the pre-Pearl Harbor atmosphere
in the United States.
At the same time, more knowledgeable trade experts stressed that about 75%
of the current problem lay with the United States, specifically with the
overvalued dollar, which makes U.S. exports more expensive, and imports
cheaper. But Congress seems more intent to pursue the ruinous course of
import quotas and tariffs than to come to grips with the U
.s.
budget
deficit, which, by necessitating heavy federal borrowing, keeps interest
rates high.
This also sucks in investment funds from overseas, further
elevating the dollar's value. Several articles in THE WALL STREET JOURNAL
have given much needed factual background to this highly charged issue.
First of all, there was the lead article in the April 4 issue:
If Japan is worried by the sudden outbreak of protectionist
bombast in Washington, welcome to the club. We too have been
more than a little shaken by the King Kong roars from the House
and Senate chambers this past week. They threaten to touch off
jungle emotions .!!2 � could control. � nothing would halt the
U
.s.
economic recovery � send U
.s.
living standards tumbling
faster than� trade� with Japan••••
As we have said here before, Japan is not blameless for this out
burst of jingoism.... Its tariffs are lower than those of the
U.S., but its non-tariff barriers are the rub•••• The U.S. would
be even more foolish, however, if it took steps to limit its
trade with Japan. As George Gilder observed so astutely [quoted
later in this report] •••, u.s.-Japanese trade is synergistic.
Both sides benefit enormously.... High-quality Japanese compo
nents are vital to high-tech U.S. products. Japanese competition
keeps U.S. manufacturers on their toes.
Most important,
inexpensive Japanese goods help Americans raise their living
standards, reducing wage demands on U.S. manufacturers.
Some U.S. companies complain about Japanese competition but then
some companies complain about any kind of competition. There is
.!!2 evidence that Japanese competition has damaged the U.S. econ
omy �� whol'e':"' Employment and capital investment have risen
sharply. Factory shipments, presumably most vulnerable to import
competition, were up nearly 30 per cent in December from two
years previously.
But what about all those dollars the Japanese are accumulating,
asked one of the pundits on a Sunday TV panel. The answer is that
Americans should give thanks that the Japanese will accept flimsy
paper dollars in exchange for shiny Toyotas, Panasonics and the
like. They accept them happily because the dollar is a good cur-