Time: Fri Jun 13 16:51:08 1997 by primenet.com (8.8.5/8.8.5) with SMTP id QAA22092; Fri, 13 Jun 1997 16:50:34 -0700 (MST) Date: Fri, 13 Jun 1997 16:49:28 -0700 To: (Recipient list suppressed) From: Paul Andrew Mitchell [address in tool bar] Subject: SLS: pending MFN/China vote, time to be heard! (fwd) <snip> > >June 13, 1997 >Oppose MFN status for Red China > >The enclosed advance copy of an article from the July 7th issue of The >New American will provide you with more ammunition for your calls and >letters opposing extension of MFN trade status for Red China. > >Key facts: The House vote to deny Most-Favored Nation trade status to >Red China will be held in late June or early July; if denial is >successful in the House, a Senate vote would then follow. Send a copy of >the enclosed article to your congressman and U.S. Senators along with >your strong urging that they oppose extension. > >In addition to your letterwriting, also mobilize public pressure on your >Congressman and Senators by organizing letters-to-the-editor and calls >to radio talk shows.THE NEW AMERICAN - June 13, 1997 > > > MFN and Corporate Welfare > > In the debate over renewal of most favored nation (MFN) >trading status for Communist China, a regime that runs over its citizens >with tanks and requires mothers to abort their babies, one crucial fact >has been ignored altogether. MFN for China is not about "free trade" >between nations, or a policy of "engagement" that will eventually >liberalize the regime's human rights policies. It is the key component >of a system of transnational corporate welfare that leeches off the U.S. >taxpayer and enhances the infrastructure and industrial base of a >potential adversary. > > The term "most favored nation" is somewhat misleading; most >nations of the world enjoy MFN status, which simply means that they >qualify for the lowest tariff rate on the products they export to the >United States. However, under the Trade Act of 1974, revocation of MFN >status would choke off access to "programs of credits, credit >guarantees, [and] investment guarantees" for "nonmarket economy >countries" such as Communist China, and for the U.S.-based transnational >corporations seeking to undertake subsidized ventures in such countries. >The major artery of such taxpayer subsides is the Export-Import Bank >(Ex-Im). The list of Ex-Im's customers for China ventures could serve as >a roster of the U.S.-based transnationals who compose the Red China >Lobby. > > International Corporatism > > According to an Ex-Im fact sheet, the institution "exists to >support U.S. exporters in making sales to foreign buyers. It does this >by filling the gap where private sector export financing is inadequate >or unavailable." That is, Ex-Im conscripts the wealth of U.S. taxpayers >to underwrite business ventures that private financial institutions >subject to the discipline of the free market simply wouldn't touch. >Congress appropriated $726 million in taxpayer funds for Ex-Im for >fiscal year 1997, not a penny of which was authorized by the >Constitution. A large portion of that money was used to finance >corporate deals in China, which Ex-Im describes as its "largest market >in Asia." From June 1996 to April 1997, Ex-Im provided more than $2 >billion in subsidies for corporate ventures in China -- subsidies that >would not have been possible had MFN not been renewed last summer. > > Among the most lucrative Ex-Im subsidies during that period >were "direct loans" of $408.8 million for New Jersey's Foster Wheeler >Energy Company and $383.1 million to underwrite purchases from Overseas >Bechtel Inc./China Bechtel Inc. Other direct loans included one of >$260.1 million to General Electric, $55.8 million for Voith Hydro, Inc., >$47.5 million for Siemens Corporation, and $36.3 million to >Westinghouse. Those loans were sent to state-run Chinese banks to >purchase goods and services from the American transnationals. > > Ex-Im also provided loan guarantees of $100 million and >$332.7 million to McDonnell-Douglas and Boeing, respectively, for the >sale of aircraft. By extending those guarantees Ex-Im assumes "all of >the political and commercial risks of non-payment" -- by extorting the >necessary funds from the U.S. taxpayer should the loans go bad. In such >arrangements, the profits are private, the investments are subsidized, >and the losses are socialized; it is international corporatism, not free >trade. > > Several of the largest beneficiaries of Ex-Im subsidies are >identifiable members of the Red China Lobby. Foster Wheeler Energy >Corporation is a member of the U.S.-China Business Council, as are >McDonnell-Douglass, General Electric, Texaco ($20 million in Ex-Im >subsidies), and Westinghouse ($36.3 million). General Electric also >belongs to the U.S.-China Educational Foundation, and Westinghouse >participates in the Business Coalition for U.S.-China Trade. Bechtel is >a member of USA-ENGAGE, which describes MFN renewal for China as "a >means of encouraging positive change in China and ensuring freedom for >Hong Kong." Boeing is arguably the corporate "Friend of China" >nonpareil. The Seattle-based aerospace firm is the leader of the >Business Coalition for U.S.-China trade, and a member of the U.S.-China >Educational Foundation, the Business Coalition for U.S.-China Trade, and >the U.S.-China Business Council. > > Selective Condemnation > > There is certainly nothing novel about taxpayer-subsidized >sales of technology to communist powers. Indeed, today's contemporary >Red China Lobby in many ways is an institutional continuation of >yesterday's Soviet lobby. For example, Donald Staheli, outgoing chairman >of the U.S.-China Business Council (which represents over 300 firms) and >a former director of both the National Committee on United States-China >Relations and the America-China Society, is also a former director of >the U.S.-Russia Trade Council. Staheli was also CEO of the New York >City-based Continental Grain Company, which for decades was a leader in >subsidized grain sales to the Soviet Union. > > Curiously, this continuity is lost on some conservative >congressmen who had been outspoken opponents of subsidized trade with >the Soviet bloc. In an April 12, 1984 letter, one such congressman wrote >that "we can no longer finance the inhuman and reprehensible activities >of ... communist countries with aid and loans from our lending >institutions and governmental agencies." "It is my belief that our >government must not permit trade with a regime actively participating in >the genocide of its own people," he stated in a February 11, 1988 >letter. On December 7, 1988 he informed yet another correspondent that >"I have introduced legislation which would prohibit all extensions of >credit, credit guarantees, investment guarantees, or grants by any >agency of the U.S. government to any communist country." > > The author of that sound and commendable legislation was >Illinois Republican Phil Crane -- who has supported China's MFN status >in every vote since 1990. As it happens, Motorola, the transnational >which is the largest employer in Crane's district, has $1.2 billion >invested in China. Motorola, predictably, belongs to several Red China >Lobby groups, and Garth Milne, Motorola's senior vice president and >treasurer, sits on the Ex-Im Bank's Advisory Committee. > > -- William Norman Grigg > >THE NEW AMERICAN - Copyright 1997 >American Opinion Publishing, Incorporated >P.O. Box 8040, Appleton, WI 54913 >Homepage: http://www.jbs.org/tna.htm >Subscriptions: $39.00/year (26 issues) -1-800-727-TRUE >WRITTEN PERMISSION FOR REPOSTING REQUIRED: Released for informational >purposes to allow individual file transfer, Usenet, and non-commercial >mail-list posting only. All other copyright privileges reserved. Address >reposting requests to tna@jbs.org or the above address. > > =================================================================== > To subscribe to FWIW simply send the following: > To: listserv@execpc.com > Subj: (leave blank) > Message: > subscribe fwiw > > That's it! The welcome letter will tell you more! > =================================================================== > To unsubscribe, simply send the above instructed message, > substituting "unsubscribe" where appropriate. > =================================================================== > Visit the largest on-line collection of quality > non-mainstream "true" Conservative text files at: > THE CONSERVATIVE CORNER - http://www.execpc.com/~jfish > =================================================================== > > > > > > ======================================================================== Paul Andrew Mitchell : Counselor at Law, federal witness B.A., Political Science, UCLA; M.S., Public Administration, U.C. Irvine tel: (520) 320-1514: machine; fax: (520) 320-1256: 24-hour/day-night email: [address in tool bar] : using Eudora Pro 3.0.2 on 586 CPU website: http://www.supremelaw.com : visit the Supreme Law Library now ship to: c/o 2509 N. Campbell, #1776 : this is free speech, at its best Tucson, Arizona state : state zone, not the federal zone Postal Zone 85719/tdc : USPS delays first class w/o this As agents of the Most High, we came here to establish justice. We shall not leave, until our mission is accomplished and justice reigns eternal. ======================================================================== [This text formatted on-screen in Courier 11, non-proportional spacing.]
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