Jim O'Conner - Japan

[Peter Kilander]

I thought the Japanese ponnied up some money ($30 billion, I think) for Asia
in the heady days before the Fed lowered rates. Rubin nixed it and Japan
complied because they don't want to strain the relationship any more than
necessary. I read today that Clinton is making noises about the "flood of
cheap imports", especially steel, but also other goods. Anonymous analysts
were quoted as saying the flood is just beginning. The piece also said
Clinton was "responding" to union pressure because they saved the Democrats
asses in the elections. But then it was suggested Clinton won't actually do
anything because it would make the U.S. look hypocritical if protectionist
policies were actually followed. As you all know, the U.S. government is not
afraid to appear hypocritical in foreign affairs, but in this instance other
countries like Japan would be encouraged to become more protectionist in
turn. China is seen as a lost cause now.  The U.S. is also now threatening
Europe with a trade war over bananas. They "favor" former colonies' bananas
over cheaper Chiquita and Dole Latin American bananas, arguing a change
would devastate the former colonies' economies. The Chicquita head honcho
gave a ton in campaign contributions to both parties, mostly to the
Republicans. The WTO had ruled in favor of the U.S. on this issue, and
Europe made cosmetic changes, but clearly not enough for the United States'
tastes. The free market at work, folks.

Tom L. wrote:
>Yes, isn't it ironic that we will probably have to sweet talk the timid
>Japanese into starting up a great east Asia co-prosperity sphere.  The
>alternative could be worse. The Japanese could have a collective nervous
>breakdown and go into isolation from the rest of the world for a few
hundred
>years.  Ushering in a new dark age.


>>Dennis wrote:
>> On Wed, 11 Nov 1998, Henry C.K. Liu wrote:
>>
>> > economic order.  Tokyo has no desire to become another London after the
>> > Big Bang and Asia does not want to become like Latin America.
>> > The sooner American policy makers accept and deal with this serious
>> > communication and conceptual gap, the sooner the dialogue will be on
>> > track for real solutions.
>>
>> OK, but then why are the Japanese not acting like the superpower they
>> indeed are? They've certainly got the cash and connections to rescue
>> themselves, not to mention Asia. Why doesn't Japan just set up its own
>> Pacific Development Bank or something and tell the US and IMF to go to
>> hell? Japan doesn't need US capital, but the US sure as heck needs
>> Japanese capital, right? Or is it just that Japan is just
>> beginning to figure out that they (along with the EU) won the Cold War?
>>
>> -- Dennis