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Electronic Industries Association 3/15/89 [OA 6347] [1]
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Electronic Industries Association 3/15/89 [OA 6347] [1]
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Records of the White House Office of Speechwriting (George H. W. Bush Administration)
Speech Backup Chronological Files
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Originally Processed With FOIA(s):
FOIA Number:
S
S
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection:
George H.W. Bush Presidential Records
Collection/Office of Origin:
Speechwriting, White House Office of
Series:
Speech File Backup Files
Subseries:
Chron File, 1989-1993
OA/ID Number:
13661
Folder ID Number:
13661-005
Folder Title:
Electronic Industries Association 3/15/89 [OA 6347] [1]
Stack:
Row:
Section:
Shelf:
Position:
G
26
18
7
2
Roger concurs
w/ JPP's
comments
Some w/Loncester
(Smith/Dooley)
March 10, 1989
8:00 p.m.
REMARKS: ELECTRONIC INDUSTRIES ASSOCIATION
MARCH 15, 1989
Members of the Electronic Industries Association, honored
guests, ladies and gentlemen, friends.
You know, twelve years ago John Ralston resigned as head
coach of football's Denver Broncos. "I left because of illness
and fatigue," he explained. "The fans were sick and tired of
me."
Tonight, accordingly, I promise not to speak overtime!
Instead, I want to thank you for that introduction, and for the
warmth of your reception.
Let me first congratulate this year's EIA Medal of Honor
recipient, Sidney Topol (TOE-pull). And I want also to say
a
celebrating its 65th anniversary This year.
word about this organization, the oldest and largest exploring
the new horizons of America's technological future.
organization
you are
you
Today, nearly two million Americans work in the electronics
industry. You are leading America's newest industrial
revolution. And you're helping us outwork and outperform any
competitor in the world.
like And Nou wa who dare to lisk and Hofy the odds a Am
know that Americans know noNbounds. People
the heart of private enterprise, jupt esprivate
enterprise is central AR America.
BRIDGE] X
2
You know- Barbara is from New York, and I often kid her
about the definition of a New Yorker: "Someone who meets his
neighbors by seeing them in Florida. "
Well, tonight we meet as neighbors, and as fellow
businessmen. Our goal is a fairer, more just, and richer life:
Not merely in our time, but for generations to come.
A richer life can mean many things.
It means education and opportunity. It means a Nation of
responsive citizens not only willing but eager to share. And
it means the economic development which makes that sharing
possible. For prosperity depends on growth, and growth depends
on freedom.
My friends, the freedom to dare, risk, and defy the odds
forms the heart of private enterprise, just as private enterprise
is central to America.
Freedom allows us to raise our horizons. Freedom can give
our children a better land than we, ourselves inherited. But to
preserve it, we must protect it. I have proposed four objectives
to do just that:
first, reduce the deficit; second, invest in
America's future; third, find solutions to an urgent set of
move
priorities; and, last but not least, no new taxes.
to p.4
3
Reducing the deficit will free our children from interest
debt which haunts their future. Investing in that future will
free them to serve the general interests of America. Focusing on
selective priorities will free government to marshal its
resources. And no new taxes is as All-American as dumping tea
into Boston Harbor.
top.4
move
3rd
These objectives will build on the progress of the last
eight years. They will reaffirm our strengths, defuse ticking
time-bombs, and re-orient us as a Nation. Above all, they form a
new approach which looks to tomorrow, not today.
Yes, America faces immediate problems -- ocean dumping, the
homeless, illiteracy. And, yes, I pledge to you: We will
address them now -- not somewhere down the line. But as we do,
let us move beyond the immediate. For, today, America is
prosperous and at peace Some might say that, today, for the
first time since the mid-1960s, we face no crises, foreign or
domestic -- challenges, yes, but not calamities -- no Viet Nam or
rampant unemployment, no energy shortages, no double-digit
e have peace. inflation.
Je have prosperity
le worked hard to
chieve these goals
I think that right now
the edge of
nd wy'll work just
We must recognize that we stand at a special moment in our
hord to
intain them history. A moment which may a fford America a most precious
Time
Sut forthe
or
gift:
the gift of time,
not for complacency
to
First Time in
ecades we
sit back and reflect upon what has been but to reflect
upon
lave something
ise the
what might be. Time to take stock; time to think, calmly,
recious
4
prudently; time to avoid mistakes, and ensure this nation's
destiny. Will we use that time? Will we seize our moment? We
will, and we must.
Our new approach says that government, like business cannot
mortgage the future to engage in self-indulgence. It says that
government can do much, but not everything -- that we must
identify what's necessary to keep us Number One. It says that
the decisions we make, and the direction we choose, will
determine the kind of America in which our children and their
children live.
AS President, I amcommitted to this new approach That is
hot hos 4
last month, I proposed a budget to cut the Federal deficit,
objective to
we simply must reduce The federal deficit, to
help ensure our financial future, and, thus, enhance business'
luited abetter Am
fromp.
ability to plan, expand, and build. And I proposed to cut that
deficit not by increasing America's taxes, but by enlarging the
American Pie and keeping spending under control.
from 3
My friends, next year alone, thanks to economic growth,
Federal tax revenues will rise by more than $80 billion -- yes,
more than $80 billion, with no new taxes. Our budget seeks to
use that money to slash the Federal deficit by more than $75
billion. That will reduce the deficit to $91 billion, nearly $4
billion below the target mandated by Graham-Rudman-Hollings.
As you know, we have begun the budget process. The
Administration has acted; now, it is up to the Congress to
5
respond. And I'm confident that it will® for no one has termed
our budget 'Dead on arrival. " Our task is to keep the momentum
going, and growing. Only then can we create the investment so
crucial to America: to increase new jobs; to unlock new markets;
and, yes, to unleash new technologies.
Again, a new approach -- in policy and attitude. For we
Americans are restless, never satisfied: We look to next week,
next year, not to the year 2000. We care that our baseball team
wins the pennant; we care less that its farm system is bursting
at the seams. Casey Stengel once said, "If you can't imitate
him, don't copy him." Well, as Americans, we don't have to
imitate anyone, nor apologize for our ambition. We are
go-getters, and our genius has enriched mankind.
Government's role its challenge- is to utilize that genius
For government must look beyond today By meeting challenges, it
can prevent them from becoming crises. Last year, a large survey
of CEOs revealed that while American business leaders are
inherently optmistic, they believe -- in this poll, by nine to
one -- that we are too short-term oriented. Our budget speaks to
the long-term, and to a stable business climate. It says "Yes"
to America's standard of living, and to her future standing in
the world.
Mysfriends, America's future will need our courage,
creativity, and, most of all, investments. And let me remind you
6
that while I'm referring to economic investments, they can
benefit America socially, culturally, racially, morally. Each
investment can define us as a people. Each can enhance that
moment which comes only once in a thousand years--the beginning
of a new millennium.
For instance, there is the investment that will result from
cutting the maximum tax rate on capital gains. Our budget
supports reducing it to 15 per cent on investments held for a
year or more.
Keep in mind that the economies of the Pacific Rim -- the
"four" dragons" of Hong Kong, Singapore, Taiwan, and South Korea
-- exempt capital gains from taxes; and our second-biggest
trading partner, Japan, didn't tax them at all during her
meteoric rise.
Well, we can learn from our competitors, and also from our
past. History is clear: Restoring the capital gains
differential will lift revenues, help savings, and free American
businesses, without distorting world markets.
Since December 1982, we've created 19 million new jobs in
this country. five times the number created in Japan. We want
to do still better. Accordingly, our budget recommends a
permanent extension of the Research and Experimentation tax
credit; we need to keep America in the forefront of technological
7
innovation. Our proposal will increase domestic research by
multinationals, and end the uncertainty of expiring temporary
rules.
These steps invest in America's future. They will encourage
progress, stability, and public confidence. And so will
investments, for instance, in education, in the environment,
in our most precious resource, our kids, and in space.
As a Texan, I know, first-hand, the role of space
exploration. I know of your industries' involvement, and your
shuttle is
role in its success. Our budget allocates $2.4 billion for the
supposedn to
Space Program. It supports a flight rate of nine Space Shuttle
flights by 1990. It funds Space Station Freedom, planned for
rakonday
operation by the mid-1990s. I also want to elevate the status of
the President's Science Advisor to that of the National Security
Advisor.
Like America, space embodies freedom; we must help both
reach unexplored frontiers. Toward that end, let us invest in
the Superconducting Super Collider, which celebrates the fusion
of science, technology, and education. Let us expand free trade
7
free, but fair trade -- which will leverage America's
[ know that
technological prowess in such areas as microcomputers, automative
hany in this
and
electronics,
electronic tubes \and high finition TV.
And let
roup use
vorking
right
us
assist
the
National
Science
Foundation.
I intend to double
1000 to develop
the
its budget by 1993, and to develop engineering and scientific
uniquely
Imerican HDTV system.
of the NaH. Science Foundation
8
research centers which link university, government, and industry
labs.
Investments, all, in research and development: Not some
river-boat gamble in a distant future, but a steadfast way to
ensure the future.
And, remember: That future will depend, above all, on
America's children. By investing in them, we can shape America's
dreams of the Twenty-First Century.
Our budget proposes a new child care initiative which
focuses on choice
increases_options for working parents -- a church can help, or
grandparents, or professional nursery.
Our budget mobilizes resources to teach our children that
drugs are wrong. And we have created the YES Program -- or Youth
Entering Service -- to involve our kids in their communities. We
want to help them understand that a successful life must include
serving others.
But most of all, investment means education. For if
excellence breeds achievement, then excellence must be rewarded
-- in grade school, in high school, and at our colleges and
universities.
9
Consider that between global competition and advancing
technology, the demand for skilled technical professionals will
grow 40 per cent in the coming decade. Yet, the NSF predicts a
shortage of 400,000 scientists 11 years from now. Today, the
number of students who graduate from high school with the skills
to succeed in science- and math-based study is too small to meet
industry's need. Our trading partners produce more engineers per
capita than we do. And these nations' secondary-school students
outperform ours in international math and science tests of
ability.
That is why I want Congress to create a $500-million program
to reward America's "merit schools" -- the schools which improve
the most. I intend to create special Presidential awards in every
State. And I urge expanded use of magnet schools -- giving
parents and teachers the freedom of choice.
I propose a program to spur "alternative certification" --
allowing talented Americans from every field, especially science
and mathematics, to teach in America's classrooms. And through a
program of National Science Scholars, I want to give America's
youth a special incentive to excel in math and science.
We must invest, as well, in minority students; our budget
proposes $60 million over four years in endowment matching grants
for historically black colleges and universities. Many of these
10
students -- black and white -- will one day choose careers based
in new technology. We must ensure they are prepared.
My friends, our children can make the Twenty-first Century a
new American Century. So let us help them, guide them, as free
men and women. And let us understand that we are one
community--proud, united, and unafraid of the future.
I found that out in Texas, after Barbara and I packed our
belongings, moved halfway across the country, and founded an oil
company with 250 workers. built a
It was there that I learned about the people, problems, and
priorities of industry. I made right decisions, and wrong ones.
in order
And I learned how our fate is not divisible: That to build a
company, / like to head heading a family, we must give of, not merely to,
just
ourselves.
The business of America isn't only business.
The business of business is America.
Albert Einstein said, "Everything that is really great and
inspiring is created by individuals who labor in freedom."
11
For more than 200 years, Americans have invested their
labor, their talent, their compassion, and their vision to
preserve freedom, seize the moment, and sustain our way of
life. Let's seize upon the oppo Munities and challinges tacing
ustoday, and step w/courage and assurance into this new
-and special moment in history.
I ask you: With America's tomorrow at stake, can we do any
less ss,today? today?
Thank you for inviting me. Thank you so very much. God bless
you all, and God bless the United States of America.
REMARKS: ELECTRONIC INDUSTRIES ASSOCATION
J.W. MARRIOTT HOTEL
MARCH 15, 1989
CHAIRMAN LITTLE, PRESIDENT MCCLOSKEY, MEMBERS OF THE
ELECTRONIC INDUSTRIES ASSOCIATION, HONORED GUESTS, LADIES
AND GENTLEMEN.
THANK YOU FOR THAT GENEROUS INTRODUCTION, AND FOR THE
WARMTH OF YOUR RECEPTION.
BISHOP FULTON SHEEN ONCE SAID, "THE PROUD MAN COUNTS
HIS NEWSPAPER CLIPPINGS -- THE HUMBLE MAN COUNTS HIS
BLESSINGS."
2
WELL, I AM PROUD INDEED TO ADDRESS THIS ANNUAL DINNER.
BUT LET ME CONFESS: TONIGHT, FLANKED BY COLLEAGUES AND
OLD FRIENDS, I AM MORE GRATEFUL FOR MY BLESSINGS.
LET ME FIRST CONGRATULATE THIS YEAR'S EIA MEDAL OF
HONOR RECIPIENT, SIDNEY TOPOL (TOE-PULL). AND I WANT ALSO
TO SAY A WORD ABOUT THIS ORGANIZATION, THE OLDEST AND
LARGEST EXPLORING THE NEW HORIZONS OF AMERICA'S
TECHNOLOGICAL FUTURE.
TODAY, NEARLY TWO MILLION AMERICANS WORK IN THE
ELECTRONICS INDUSTRY.
3
You ARE LEADING AMERICA'S NEWEST INDUSTRIAL REVOLUTION.
AND YOU'RE HELPING US OUTWORK AND OUTPERFORM ANY
COMPETITOR IN THE WORLD.
TONIGHT WE MEET AS NEIGHBORS, AND AS FELLOW
BUSINESSMEN. OUR GOAL IS A FAIRER, MORE PRODUCTIVE, AND
ENNOBLING LIFE, NOT MERELY IN OUR TIME, BUT FOR
GENERATIONS TO COME.
A MORE ENNOBLING LIFE CAN MEAN MANY THINGS. IT MEANS
EDUCATION AND OPPORTUNITY.
4
IT MEANS A NATION OF RESPONSIVE CITIZENS -- NOT ONLY
WILLING BUT EAGER TO SHARE. AND IT MEANS THE ECONOMIC
DEVELOPMENT WHICH MAKES THAT SHARING POSSIBLE. FOR
PROSPERITY DEPENDS ON GROWTH, AND GROWTH DEPENDS ON
FREEDOM.
MY FRIENDS, THE FREEDOM TO DARE, TO RISK, AND DEFY
THE ODDS FORMS THE HEART OF FREE ENTERPRISE, JUST AS FREE
ENTERPRISE IS CENTRAL TO THE AMERICAN DREAM.
FREEDOM CAN GIVE OUR CHILDREN A BETTER LAND THAN WE
OURSELVES INHERITED.
5
BUT TO PRESERVE IT, WE MUST PROTECT IT. THAT IS WHY I
HAVE PROPOSED FOUR OBJECTIVES TO BUILD A BETTER AMERICA:
FIRST, REDUCE THE DEFICIT; SECOND, INVEST IN AMERICA'S
FUTURE; THIRD, ADDRESS THE PROBLEMS OF THE PRESENT -- THE
PROBLEMS THAT CANNOT WAIT; AND, LAST BUT NOT LEAST, NO NEW
TAXES.
YES, AMERICA FACES IMMEDIATE PROBLEMS -- PROBLEMS
LIKE OCEAN DUMPING, THE HOMELESS, ILLITERACY. AND YES, I
PLEDGE TO YOU: WE WILL ADDRESS THEM NOW -- NOT SOMEWHERE
DOWN THE LINE.
6
BUT AS WE DO, LET US MOVE BEYOND THE IMMEDIATE. FOR,
TODAY, AMERICA IS PROSPEROUS AND AT PEACE. To BE SURE,
THERE ARE ENORMOUS CHALLENGES -- AND MANY OPPORTUNITIES
PRESENTED BY CHANGES THAT ARE FAVORABLE TO DEMOCRACY, TO
LIBERTY, TO FREE MARKETS -- FAVORABLE TO THE PRINCIPLES
THIS COUNTRY HAS ALWAYS STOOD FOR.
THEREFORE, LET US RECOGNIZE THAT WE STAND AT A
SPECIAL MOMENT IN OUR HISTORY. IT IS A MOMENT ...
NOT FOR
COMPLACENCY
NOT TO SIT BACK AND REFLECT UPON WHAT HAS
BEEN
BUT TO REFLECT UPON WHAT MIGHT BE.
7
IT IS AN OPPORTUNITY TO LOOK INTO THE FUTURE AND PLAN FOR
IT so THAT AMERICA'S PLACE, AND THE WELL-BEING OF HER
PEOPLE, ARE ENSURED FOR GENERATIONS To COME. OUR NATION
HAS ALWAYS HAD A SPECIAL FAITH IN THE FUTURE, AND THE
WISDOM TO INVEST IN IT, WHETHER THROUGH THE FOUNDING OF
GREAT UNIVERSITIES, OR TYING TOGETHER THE CONTINENT BY
RAIL, OR BUILDING THE INTERSTATE HIGHWAY SYSTEM. WE MUST
REMEMBER THAT AMERICAN TRADITION AS WE INVEST FOR THE
FUTURE OF OUR OWN CHILDREN.
8
MY FOUR OBJECTIVES WILL ALLOW AMERICA TO HONOR THAT
HERITAGE, AND SEIZE HER MOMENT. TOGETHER, THEY WILL
SOLIDIFY ECONOMIC FREEDOM. TOGETHER, THEY WILL EXPAND
THAT FREEDOM. BUT ABOVE ALL, THEY WILL EMPOWER MORE
PEOPLE, MORE FULLY, TO PARTAKE OF THE AMERICAN DREAM.
REDUCING THE DEFICIT WILL FREE OUR CHILDREN FROM
INTEREST DEBT WHICH HAUNTS THEIR FUTURE. INVESTING IN
THAT FUTURE WILL PREPARE US AS A PEOPLE FOR A NEW CENTURY
AND ITS CHALLENGES. FOCUSING ON URGENT PRIORITIES WILL
FREE GOVERNMENT TO MARSHAL ITS RESOURCES.
9
AND NO NEW TAXES REFLECTS THAT INNATELY AMERICAN QUALITY
-- GOOD OLD-FASHIONED COMMON SENSE.
THESE FOUR OBJECTIVES WILL BUILD ON THE PROGRESS OF
THE LAST EIGHT YEARS -- THEY WILL BUILD A BETTER AMERICA.
THEY WILL REAFFIRM OUR STRENGTHS, DEFUSE TICKING
TIME-BOMBS, AND RE-ORIENT US AS A NATION. ABOVE ALL, THEY
FORM A NEW APPROACH WHICH LOOKS TO TOMORROW, NOT TODAY.
As PRESIDENT, I AM COMMITTED TO THIS NEW APPROACH.
10
THAT IS WHY, LAST MONTH, I PROPOSED AN AGENDA TO CUT THE
FEDERAL DEFICIT, HELP ENSURE OUR FINANCIAL FUTURE, AND,
THUS, ENHANCE BUSINESS' ABILITY TO PLAN, EXPAND, AND
BUILD. AND I PROPOSED TO CUT THAT DEFICIT NOT BY
INCREASING AMERICA'S TAXES, BUT BY CONTROLLING SPENDING
AND CONTINUING ECONOMIC GROWTH, SO THAT AS MORE PEOPLE ARE
WORKING, REVENUES WILL RISE AS TAX RATES REMAIN THE SAME.
11
MY FRIENDS, NEXT YEAR ALONE, THANKS TO ECONOMIC
GROWTH, FEDERAL TAX REVENUES WILL RISE BY MORE THAN $80
BILLION -- YES, MORE THAN $80 BILLION, EVEN WITH NO NEW
TAXES.
MY PLAN WILL USE THAT NEW REVENUE TO SLASH THE
FEDERAL DEFICIT BY MORE THAN 40 PERCENT, BRINGING THE
DEFICIT BELOW THE TARGET MANDATED BY
GRAMM-RUDMAN-HOLLINGS.
As YOU KNOW, WE HAVE BEGUN THE BUDGET PROCESS.
12
THE ADMINISTRATION HAS ACTED; NOW, WE ARE WORKING WITH
CONGRESS TO GET ACTION. OUR TASK IS TO KEEP THE ECONOMY
GOING, AND GROWING. ONLY THEN CAN WE CREATE THE
INVESTMENT so CRUCIAL TO AMERICA: TO INCREASE NEW JOBS;
TO UNLOCK NEW MARKETS; AND, YES, TO UNLEASH NEW
TECHNOLOGIES.
IN A SENSE, THIS IS TYPICALLY AMERICAN. FOR WE ARE
RESTLESS, NEVER SATISFIED: WE LOOK TO NEXT WEEK, NEXT
YEAR, NOT TO THE YEAR 2000.
13
GOVERNMENT'S ROLE -- ITS CHALLENGE -- IS TO HARNESS
THAT AMBITION BY LOOKING BEYOND TODAY. LAST YEAR, A LARGE
SURVEY OF CEOs REVEALED THAT WHILE AMERICAN BUSINESS
LEADERS ARE INHERENTLY OPTIMISTIC, THEY BELIEVE -- IN THIS
POLL, BY NINE TO ONE -- THAT WE ARE TOO SHORT-TERM
ORIENTED. MY PLAN SPEAKS TO THE LONG-TERM, AND TO A
STABLE BUSINESS CLIMATE. IT SAYS THAT TO REMAIN
COMPETITIVE, WE MUST LOOK BEYOND THE NEXT QUARTERLY
STATEMENT. IT SAYS "Yes" TO AMERICA'S STANDARD OF LIVING,
AND TO HER FUTURE STANDING IN THE WORLD.
14
FOR INSTANCE, LET ME ADDRESS THE INVESTMENT THAT WILL
RESULT FROM CUTTING THE MAXIMUM RATE ON CAPITAL GAINS. MY
PLAN SUPPORTS REDUCING IT TO 15 PER CENT ON LONG-HELD
ASSETS. MOREOVER, IT EFFECTIVELY ELIMINATES THE CAPITAL
GAINS TAX ON PEOPLE MAKING LESS THAN $20,000 A YEAR.
IN 1978, THIS ORGANIZATION, FOLLOWING THE LEADERSHIP
OF CONGRESSMAN BILL STEIGER, WORKED TO REDUCE THE CAPITAL
GAINS TAX. WELL, TODAY, WE MUST FIGHT THAT BATTLE AGAIN.
15
RESTORING THE CAPITAL GAINS DIFFERENTIAL WILL LIFT
REVENUES, HELP SAVINGS, AND FREE AMERICAN BUSINESSES,
WITHOUT DISTORTING WORLD MARKETS.
CONSIDER, ON THE ONE HAND, THOSE COMPETITORS WHO TAX
CAPITAL GAINS PUNITIVELY. BY PUNISHING RISK-TAKERS, THEY
STIFLE OPPORTUNITY. LESS OPPORTUNITY MEANS LESS CAPITAL
TO INVEST. LESS CAPITAL, IN TURN, MAKES COUNTRIES LESS
COMPETITIVE. IT'S A VICIOUS CYCLE, A CATCH-22, AND ABOVE
ALL, AN ECONOMIC DEAD-END.
16
ON THE OTHER HAND, KEEP IN MIND THAT SOME OF THE MOST
SUCCESSFUL ECONOMIES OF THE PACIFIC RIM -- HONG KONG,
SINGAPORE, AND THE REPUBLIC OF KOREA -- EXEMPT CAPITAL
GAINS FROM TAXES; AND OUR SECOND-BIGGEST TRADING PARTNER,
JAPAN, SCARCELY TAXED THEM DURING HER METEORIC RISE.
As BUSINESSMEN, YOU KNOW THIS ECONOMIC HISTORY. You
KNOW ITS LESSONS ARE CLEAR. AND, LIKE ME, YOU HEAR A LOT
ABOUT COMPETITIVENESS THESE DAYS.
17
WELL, NOTHING CAN MAKE AMERICA MORE COMPETITIVE THAN
RESTORING THE CAPITAL GAINS DIFFERENTIAL. AMERICA'S
ENTREPRENEURS SHOULD NOT HAVE TO RUN AN UPHILL RACE
AGAINST THE REST OF THE WORLD.
TONIGHT, I CHALLENGE THE CONGRESS TO JOIN WITH ME AND
LEVEL THAT PLAYING FIELD. I ASK IT TO EXPAND THE
MARKETPLACE AND ASSIST DEVELOPMENT. I URGE IT TO INCREASE
COMPETITIVENESS AND LINK REWARD AND RISK. How? BY
LOWERING THE TAX RATE ON CAPITAL GAINS.
18
MY FRIENDS, THE TREASURY ESTIMATES THAT THIS CUT WILL
ADD $4.8 BILLION TO THE REVENUE SIDE OF THE LEDGER IN
FISCAL YEAR 1990. LET US USE IT TO EXPAND ECONOMIC
FREEDOM, AND HELP PEOPLE HELP THEMSELVES. AND LET US
BUILD UPON THE OVER 19 AND 1/2 MILLION NEW JOBS CREATED IN
THIS COUNTRY SINCE NOVEMBER 1982 -- FIVE TIMES THE NUMBER
CREATED IN JAPAN.
ACCORDINGLY, MY PLAN TO BUILD A BETTER AMERICA
RECOMMENDS A PERMANENT EXTENSION OF THE RESEARCH AND
EXPERIMENTATION TAX CREDIT.
19
IT WILL INCREASE DOMESTIC RESEARCH BY MULTINATIONALS, AND
END THE UNCERTAINTY OF EXPIRING TEMPORARY RULES. AND BY
ADOPTING FEDERAL ENTERPRISE ZONES, IT WILL HELP THOSE
UNTOUCHED BY THE ECONOMIC RECOVERY.
ENTERPRISE ZONES ARE A PIONEERING INITIATIVE TO
CREATE A NUMBER OF FEDERALLY-TARGETED ZONES -- OR AREAS --
IN ECONOMICALLY-DISTRESSED COMMUNITIES. BY PROVIDING TAX
BREAKS AND RELIEF FROM REGULATION, THESE ZONES FOSTER A
CLIMATE WHERE BUSINESSES ARE FOUNDED, AND EXISTING
BUSINESSES EXPANDED.
20
ENTERPRISE ZONES, LIKE LOWERING THE TAX ON CAPITAL
GAINS, WILL INVEST IN AMERICA'S FUTURE. AND so WILL OTHER
INVESTMENTS: INVESTMENTS, FOR INSTANCE, IN EDUCATION, IN
THE ENVIRONMENT, IN OUR CHILDREN, AND IN SPACE.
As A TEXAN, I KNOW, FIRST-HAND, THE ROLE OF SPACE
EXPLORATION. I KNOW OF YOUR INDUSTRIES' INVOLVEMENT, AND
YOUR ROLE IN ITS SUCCESS. MY PLAN ALLOCATES AN INCREASE
OF $2.4 BILLION FOR THE SPACE PROGRAM. THIS IS AS MUCH AN
INVESTMENT IN OUR TECHNOLOGICAL FUTURE AS IT IS A
REAFFIRMATION OF OUR NATIONAL CHARACTER.
21
IT SUPPORTS AFFORDABLE ACCESS TO SPACE THROUGH THE
NATIONAL AERO-SPACE PLANE PROGRAM AND NINE SPACE SHUTTLE
FLIGHTS BY 1990. IT FUNDS SPACE STATION FREEDOM, PLANNED
FOR OPERATION IN THE MID-1990s. I ALSO WILL ELEVATE THE
STATUS OF THE PRESIDENT'S SCIENCE ADVISOR.
ALL THE UNEXPLORED FRONTIERS ARE NOT IN SPACE; MANY
ARE FOUND CLOSER TO HOME AS WE SEEK TO PUSH BACK THE
FRONTIERS OF HUMAN KNOWLEDGE. TOWARD THAT END, LET US
INVEST IN THE SUPERCONDUCTING SUPER COLLIDER -- A BOLD NEW
EXPERIMENT, FUSING SCIENCE, TECHNOLOGY, AND EDUCATION.
22
LET US EXPAND THE WORK WHICH WILL LEVERAGE AMERICA'S
TECHNOLOGICAL PROWESS IN SUCH AREAS AS MICRO-COMPUTERS,
AUTOMATIVE ELECTRONICS, BIO-PROCESSING, AND
HIGH-DEFINITION TV. AND BECAUSE SCIENCE IS CRITICAL, AS I
HAVE SAID, I INTEND TO DOUBLE THE NATIONAL SCIENCE
FOUNDATION BUDGET.
THESE INVESTMENTS ARE NOT SOME RIVER-BOAT GAMBLE IN A
DISTANT FUTURE, BUT A STEADFAST WAY TO ENSURE THE FUTURE.
23
AND, YET, MY FRIENDS, REMEMBER: THAT FUTURE WILL DEPEND,
ABOVE ALL, ON OUR MOST PRECIOUS RESOURCE, AMERICA'S
CHILDREN.
WE MUST MAKE SURE THAT OUR CHILDREN ARE EDUCATED --
THE VERY DEFINITION OF LONG-TERM INVESTMENT IN AMERICA'S
FUTURE. THAT IS WHY I WANT CONGRESS TO CREATE A $500
MILLION PROGRAM TO REWARD AMERICA'S "MERIT SCHOOLS." I
INTEND TO CREATE SPECIAL PRESIDENTIAL AWARDS IN EVERY
STATE. AND I URGE EXPANDED USE OF MAGNET SCHOOLS --
GIVING PARENTS AND STUDENTS THE FREEDOM OF CHOICE.
24
I PROPOSE A PROGRAM TO SPUR "ALTERNATIVE CERTIFICATION" --
ALLOWING TALENTED AMERICANS FROM EVERY FIELD, ESPECIALLY
SCIENCE AND MATHEMATICS, TO TEACH IN AMERICA'S CLASSROOMS.
AND THROUGH A NEW PROGRAM OF NATIONAL SCIENCE SCHOLARS, I
WANT TO GIVE AMERICA'S YOUTH A SPECIAL INCENTIVE TO EXCEL
IN MATH AND SCIENCE.
To BUILD A BETTER AMERICA, MY PROGRAM ALSO MOBILIZES
RESOURCES TO TEACH OUR CHILDREN THE TRUTH ABOUT THE
DANGERS OF DRUGS.
25
AND WE HAVE PROPOSED THE YES PROGRAM -- OR YOUTH ENTERING
SERVICE -- TO INVOLVE OUR KIDS IN THEIR COMMUNITIES.
MY FRIENDS, OUR CHILDREN CAN MAKE THE TWENTY-FIRST
CENTURY A NEW AMERICAN CENTURY. So LET US HELP THEM,
GUIDE THEM. AND LET US UNDERSTAND THAT WE ARE ONE
COMMUNITY -- PROUD, UNITED, AND UNAFRAID OF THE FUTURE.
A QUOTE IS ATTRIBUTED TO ALBERT EINSTEIN, SAYING,
"EVERYTHING THAT IS REALLY GREAT AND INSPIRING IS CREATED
BY INDIVIDUALS WHO LABOR IN FREEDOM."
26
FOR MORE THAN 200 YEARS, AMERICANS HAVE INVESTED
THEIR LABOR, THEIR TALENT, THEIR COMPASSION, AND THEIR
VISION TO PRESERVE FREEDOM, TO SEIZE THE MOMENT, AND
SUSTAIN OUR WAY OF LIFE. I ASK YOU: WITH AMERICA'S
TOMORROW AT STAKE, CAN WE DO ANY LESS TODAY?
GOD BLESS YOU ALL, AND GOD BLESS THE UNITED STATES OF
AMERICA.
###
(Smith/Dooley)
March 10, 1989
8:00 p.m.
Kathy
REMARKS: ELECTRONIC INDUSTRIES ASSOCIATION
MARCH 15, 1989
J.W. Marriott Hotel
Navance
Members of the Electronic Industries Association, honored
Pres.
Chairman
guests, ladies and gentlemen, friends.
Introxioskey
You know, twelve years ago John Ralston resigned as head
curt
coach of football's Denver Broncos. "I left because of illness
and fatigue," he explained. "The fans were sick and tired of
me."
Tonight, accordingly, I promise not to speak overtime!
Instead, I want to thank you for that introduction, and for the
warmth of your reception.
COB, Scientific Atlanta
Mark up Rosenker
Let me first congratulate this year's EIA Medal of Honor
recipient, Sidney Topol (TOE-pull). And I want also to say a
word about this organization, the oldest and largest exploring
Sheet & FIA 45 fact
the new horizons of America's technological future.
Talking
Today, nearly two million Americans work in the electronics
industry. You are leading America's newest industrial
VP Rosenker
Mark
revolution. And you're helping us outwork and outperform any
competitor in the world.
437-498 E/A IA
2
You know, Barbara is from New York, and I often kid her
Tooking forward
about the definition of a New Yorker: "Someone who meets his
p.41
neighbors by seeing them in Florida."
Well, tonight we meet as neighbors, and as fellow
businessmen. Our goal is a fairer, more just, and richer life:
Not merely in our time, but for generations to come.
A richer life can mean many things.
It means education and opportunity. It means a Nation of
responsive citizens -- not only willing but eager to share. And
it means the economic development which makes that sharing
possible. For prosperity depends on growth, and growth depends
on freedom.
My friends, the freedom to dare, risk, and defy the odds
forms the heart of private enterprise, just as private enterprise
is central to America.
Freedom allows us to raise our horizons. Freedom can give
our children a better land than we, ourselves, inherited. But to
Address to
preserve it, we must protect it. I have proposed four objectives
congress
to do just that: first, reduce the deficit; second, invest in
2/9/89
+
4-4
America's future; third, find solutions to an urgent set of
4x
1.2
priorities; and, last but not least, no new taxes.
3
Reducing the deficit will free our children from interest
debt which haunts their future. Investing in that future will
free them to serve the general interests of America. Focusing on
selective priorities will free government to marshal its
resources. And no new taxes is as All-American as dumping tea
into Boston Harbor.
These objectives will build on the progress of the last
eight years. They will reaffirm our strengths, defuse ticking
time-bombs, and re-orient us as a Nation. Above all, they form a
new approach which looks to tomorrow, not today.
Yes, America faces immediate problems -- ocean dumping, the
homeless, illiteracy. And, yes, I pledge to you: We will
address them now -- not somewhere down the line. But as we do,
let us move beyond the immediate. For, today, America is
prosperous and at peace. Some might say that, today, for the
first time since the mid-1960s, we face no crises, foreign or
domestic -- challenges, yes, but not calamities -- no Viet Nam or
rampant unemployment, no energy shortages, no double-digit
inflation.
We must recognize that we stand at a special moment in our
history. A moment which may afford America a most precious
gift: the gift of time
not for complacency
not to
sit back and reflect upon what has been
but to reflect upon
what might be. Time to take stock; time to think, calmly,
4
prudently; time to avoid mistakes, and ensure this nation's
destiny. Will we use that time? Will we seize our moment? We
will, and we must.
Our new approach says that government, like business, cannot
mortgage the future to engage in self-indulgence. It says that
government can do much, but not everything -- that we must
identify what's necessary to keep us Number One. It says that
the decisions we make, and the direction we choose, will
determine the kind of America in which our children and their
children live.
As President, I am committed to this new approach. That + is
4
why, last month, I proposed a budget to cut the Federal deficit,
help ensure our financial future, and, thus, enhance business'
ability to plan, expand, and build. And I proposed to cut that
Sialsq Emerica
Burding
deficit not by increasing America's taxes, but by enlarging the
American Pie and keeping spending under control.
My friends, next year alone, thanks to economic growth,
BBA p.23
Federal tax revenues will rise by more than $80 billion -- yes,
-Rudai
more than $80 billion, with no new taxes. Our budget seeks to
BST
will
use that money to slash the Federal deficit by more than $75
billion. That will reduce the deficit to $91 billion hearly $4
of $100 billion.
billion below the / target mandated by Craham- Rudman Hollings
COMBENTS
As you know, we have begun the budget process. The
Administration has acted; now, it is up to the Congress to
82 - Topol = Chairman
WH - state Dining Rm.
83 - 4 spaces away - dinner
5
respond. And I'm confident that it will, for no one has termed
our budget "Dead on arrival." Our task is to keep the momentum
going, and growing. Only then can we create the investment so
crucial to America: to increase new jobs; to unlock new markets;
and, yes, to unleash new technologies.
Again, a new approach -- in policy and attitude. For we
Americans are restless, never satisfied: We look to next week,
next year, not to the year 2000. We care that our baseball team
wins the pennant; we care less that its farm system is bursting
curt
at the seams. Casey Stengel once said, "If you can't imitate
him, don't copy him." Well, as Americans, we don't have to
imitate anyone, nor apologize for our ambition. We are
go-getters, and our genius has enriched mankind.
Government's role--its challenge--is to utilize that genius.
For government must look beyond today. By meeting challenges, it
Ben
can prevent them from becoming crises. Last year, a large survey
Watlenbure
of CEOs revealed that while American business leaders are
4
4
"Thempetiven Edge
inherently optmistic, they believe -- in this poll, by nine to
one -- that we are too short-term oriented. Our budget speaks to
the long-term, and to a stable business climate. It says "Yes"
to America's standard of living, and to her future standing in
the world.
My friends, America's future will need our courage,
creativity, and, most of all, investments. And let me remind you
6
that while I'm referring to economic investments, they can
benefit America socially, culturally, racially, morally. Each
investment can define us as a people. Each can enhance that
moment which comes only once in a thousand years--the beginning
of a new millennium.
For instance, there is the investment that will result from
cutting the maximum tax rate on capital gains. Our budget
PP.303 BBA
supports reducing it to 15 per cent on investments held for a
council
year 444 or more.
Americantal for
Formation- for
Center Researe Rept.
Keep in mind that the economies of the Pacific Rim
--
the
"four" dragons" of Hong Kong, Singapore, Taiwan, and South Korea
Taxes Capital in bains 1987 Rest
Policial
-- exempt capital gains from taxes; and our second biggest
us of the world
usv.the
4
trading partner, Japan, didn't tax them at all during her
National Bureau of Econ Research Working Paper series, "The
meteoric
rise. Japanese Tax Reform + the Effective Rate of Tax
on Japunese Corporate Investments, " by John B. Shoren,
Dec. 1988
Well, we can learn from our competitors, and also from our
past. History is clear: Restoring the capital gains
Larry Grosay
differential will lift revenues, help savings, and free American
businesses, without distorting world markets.
over 191/2
Alan OMB Kozela
Since December November 1982, we've created 19 million new jobs in BLS figs.
this country -- five times the number 4 created in 4 Japan We want pay
non-agll
Feb88= Feb
to do still better. Accordingly, our budget recommends a
108,345,000
Nov 82
permanent extension of the Research and Experimentation tax
88,671,000
BB R.39
diff = 19,671,04
credit; we need to keep America in the forefront of technological
OMB
Debbie Kleir
14800
BLS
1223
7
BBA
innovation. Our proposal will increase domestic research by
P.39
multinationals, and end the uncertainty of expiring temporary
rules.
These steps invest in America's future. They will encourage
progress, stability, and public confidence. And so will
investments, for instance, in education, in the environment,
in our most precious resource, our kids, and in space.
As a Texan, I know, first-hand, the role of space
EIA
exploration. I know of your industries' involvement, and your
an
increase
of
BBA
role in its success. Our budget allocates $2.4 billion for the
BBA
Speciale
Space Program. It supports a flight rate of nine Space Shuttle
p.35
flights by 1990. It funds Space Station Freedom, planned for
operation by the mid-1990s. I also want to elevate the status of
BBA
the President's Science Advisor to that of the National Security
Pist
x
Advisor.
Like America, space embodies freedom; we must help both
reach unexplored frontiers. Toward that end, let us invest in
BBA?
the Superconducting Super Collider, which celebrates the fusion
of science, technology, and education. Let us expand free trade
-- free, but fair trade -- which will leverage America's
technological prowess in such areas as microcomputers, automative
BBA
Maily-4980 Rosenker
electronics, electronic tubes, and high-definition TV. And let
us assist the National Science Foundation. I intend to double
BBA
its budget by 1993, and to develop engineering and scientific
p.37
8
research centers which link university, government, and industry
labs.
Investments, all, in research and development: Not some
river-boat gamble in a distant future, but a steadfast way to
ensure the future.
And, remember: That future will depend, above all, on
America's children. By investing in them, we can shape America's
dreams of the Twenty-First Century.
Our budget proposes a new child care initiative which
increases options for working parents -- a church can help, or
BB-103
grandparents, or La professional nursery.
xxx Our budget mobilizes resources to teach our children that
BBA P-69
BBA
4
drugs are wrong. And we have created the YES Program -- or Youth
4444
4.
BEA
Entering Service -- to involve our kids in their communities.
We
want to help them understand that a successful life must include
serving others.
But most of all, investment means education. For if
excellence breeds achievement, then excellence must be rewarded
-- in grade school, in high school, and at our colleges and
universities.
9
Consider that between global competition and advancing
technology, the demand for skilled technical professionals will
grow 40 per cent in the coming decade. Yet, the NSF predicts a
shortage of 400,000 scientists 11 years from now. Today, the
NACME!
number of students who graduate from high school with the skills
to succeed in science- and math-based study is too small to meet
industry's need. Our trading partners produce more engineers per
capita than we do. And these nations' secondary-school students
outperform ours in international math and science tests of
ability.
4
+
That is why I want Congress to create a $500-million program
BBA, P.51
to reward America's "merit schools" -- the schools which improve
4
BBA
the most. I intend to create special Presidential awards in every
State. And I urge expanded use of magnet schools -- giving
pp.55-l
BBA
AM
parents and teachers the freedom of choice.
students
I propose a program to spur "alternative certification" --
BBA p.57
allowing talented Americans from every field, especially science
+
BBA
and mathematics, to teach in America's classrooms. And through a
BBA
program of National Science Scholars, I want to give America's
p.54
youth 4x4 a special incentive 4 to excel in math and science.
+4
We must invest, as well, in minority students; our budget
BBA
BRA
proposes $60 million over four years in endowment matching grants
0.60
for historically black colleges and universities. Many of these
10
students -- black and white -- will one day choose careers based
in new technology. We must ensure they are prepared.
My friends, our children can make the Twenty-first Century a
new American Century. So let us help them, guide them, as free
men and women. And let us understand that we are one
community--proud, united, and unafraid of the future.
I found that out in Texas, after Barbara and I packed our
Looking
belongings, moved halfway across the country, and founded an oil
company with 250 workers.
It was there that I learned about the people, problems, and
priorities of industry. I made right decisions, and wrong ones.
And I learned how our fate is not divisible: That to build a
company, like to head a family, we must give of, not merely to,
ourselves.
The business of America isn't only business.
The business of business is America.
Albert Einstein said, "Everything that is really great and
inspiring is created by individuals who labor in freedom."
11
For more than 200 years, Americans have invested their
labor, their talent, their compassion, and their vision to
preserve freedom, seize the moment, and sustain our way of
life.
I ask you: With America's tomorrow at stake, can we do any
less today?
Thank you for inviting me. Thank you so very much. God bless
you all, and God bless the United States of America.
THE
THE ALERIA
4789
DEPARTMENT OF TREASURY
15TH & PENNSYLVANIA AVE., N.W.
TREASURY 1989 MAR TELECOMMUNICATIONS
Nd 51 INSURANCE
FACSIMILE COVER SHEET
up 56 of THE TREASURY
WASHINGTON' D.C. 20220
1251
FAX MESSAGE NUMBER
DATE March 15. 1989
NUMBER OF PAGES TO FOLLOW:
one (1)
TO:
Peggy Dooley, White llouse Speechwriter
ADDRESSEE'S FAX NUMBER:
456-7739
ADDRESSEE'S CONFIRMATION NUMBER
456-7750
FROM:
John G. Wilkins, Office of Tax Policy, Department of the Treasury
SENDER'S FAX NUMBERS: (202) 566-8066 (202) 633-0898 (202) 633-0987
SENDER'S CONFIRMATION NUMBER: (202) 566-8114
COMMENTS/SPECIAL INSTRUCTIONS:
#1257
DEPARTMENT OF THE TREASURY
WASHINGTON
March 15, 1989
MEMORANDUM
To:
The Files
From:
John G. Wilkins
Senior Advisor to the
Assistant Secretary for Tax Policy
Subject: Taiwan Capital Gains Taxes
Our further examination into the capital gains tax situation in
Taiwan confirms that there is a capital gains tax on the books
that generally taxes financial and other assets at ordinary
income rates.
On a year-by-year basis, the government has elected to provide an
annual exemption from this tax for most assets. An important
exception to this annual exemption is gains from the sale of
shares of corporations unlisted on an exchange.
PN4305
04
B7a
WHRC
COMPLETE SPEAKER'S
AND
TOASTMASTER'S LIBRARY
Remarks of Famous People
by Jacob M. Braude
PRENTICE-HALL, INC.
Englewood Cliffs, N.J.
HUMILITY
learns his duties; for where the rights of men are equal, every man must
finally see the necessity of protecting the rights of others as the most
effectual security of his own.
-THOMAS PAINE
Humility
279. Humility, like darkness, reveals the heavenly lights.
-HENRY DAVID THOREAU
280. Humility is like underwear-essential, but indecent if it
shows.
-HELEN NIELSEN
281. The proud man counts his newspaper clippings-the hum-
ble man his blessings.
-BISHOP FULTON J. SHEEN
Humor
282. Humor is emotional chaos remembered in tranquility.
-JAMES THURBER
283. There is no reason why a joke should not be appreciated
more than once. Imagine how little good music there would be if, for
example, a conductor refused to play Beethoven's Fifth Symphony on
the ground that his audience might have heard it before.
-ALAN PATRICK HERBERT
Husband-Wife
284. The woman who cannot evolve a good lie in defense of the
man she loves is unworthy of the name of wife.
:
-ELBERT HUBBARD
285. Every man who is high up loves to think that he has
done it all himself; and the wife smiles, and lets it go at that.
-JAMES MATTHEW BARRIE
48
From the desk of
George Bush
1. Fine
2. Made 2 suggestim
so as to shorter
a little
b8/51/E
THE PRESIDENT HAS SEEN
(Smith)
March 14, 1989
noon
REMARKS: ELECTRONIC INDUSTRIES ASSOCIATION
J.W. MARRIOTT HOTEL
MARCH 15, 1989
Chairman Little, President McCloskey, members of the
Electronic Industries Association, honored guests, ladies and
gentlemen.
Thank you for that generous introduction, and for the warmth
of your reception.
Bishop Fulton Sheen once said, "The proud man counts his
newspaper clippings -- the humble man counts his blessings."
Well, I am proud indeed to address this bi-annual dinner. But
let me confess: tonight, flanked by colleagues and old friends,
I am more grateful for my blessings.
Let me first congratulate this year's EIA Medal of Honor
recipient, my friend Sidney Topol (TOE-pull). And I want also to
say a word about this organization, the oldest and largest
exploring the new horizons of America's technological future.
Today, nearly two million Americans work in the electronics
industry. You are leading America's newest industrial
revolution. And you're helping us outwork and outperform any
competitor in the world.
2
Tonight we meet as neighbors, and as fellow businessmen.
Our goal is a fairer, more productive, and ennobling life, not
merely in our time, but for generations to come.
A more ennobling life can mean many things. It means
education and opportunity. It means a nation of responsive
citizens -- not only willing but eager to share. And it means
the economic development which makes that sharing possible. For
prosperity depends on growth, and growth depends on freedom.
My friends, the freedom to dare, to risk, and defy the odds
forms the heart of free enterprise, just as free enterprise is
central to the American Dream.
Freedom can give our children a better land than we
ourselves inherited. But to preserve it, we must protect it.
That is why I have proposed four objectives to build a better
America: first, reduce the deficit; second, invest in America's
future; third, address the problems of the present -- the
problems that cannot wait; and, last but not least, no new taxes.
Yes, America faces immediate problems -- problems like ocean
dumping, the homeless, illiteracy. And yes, I pledge to you: we
will address them now -- not somewhere down the line. But as we
do, let us move beyond the immediate. For, today, America is
prosperous and at peace. Indeed, some might say that for the
first time in decades we face no major crises, foreign or
3
cnormous
domestic. To be sure, there are challenges -- and many
opportunities presented by changes that are favorable to
democracy, to liberty, to free markets -- favorable to the
principles this country has always stood for.
Therefore, let us recognize that we stand at a special
moment in our history. It is a moment
not for complacency
not to sit back and reflect upon what has been
but to
reflect upon what might be. It is an opportunity to assess the
many changes occurring both at home and abroad to look into the
future and plan for it so that America's place, and the
shoutar
Tighter
well-being of her people, are ensured for generations to come.
Our nation has always had a special faith in the future and the
hopes and dreams that might be realized. Throughout our history,
our ancestors had the wisdom to invest in that future, whether house
was the founding of great universities or tying together the
continent by rail or building the Interstate highway system. We
must remember that American tradition as we plan our investments
for the future of our own children.
My four objectives will allow America to honor that
heritage, and seize her moment. Together, they will solidify
economic freedom. Together, they will expand that freedom. But
above all, they will empower more people, more fully, to partake
of the American Dream.
4
Reducing the deficit will free our children from interest
debt which haunts their future. Investing in that future will
prepare us as a people for a new century and its challenges.
Focusing on urgent priorities will free government to marshal its
resources. And no new taxes reflects that innately American
quality -- good old-fashioned common sense.
These four objectives will build on the progress of the last
eight years -- they will build a better America. They will
reaffirm our strengths, defuse ticking time-bombs, and re-orient
us as a nation. Above all, they form a new approach which looks
to tomorrow, not today.
As President, I am committed to this new approach. That is
why, last month, I proposed an agenda to cut the Federal deficit,
help ensure our financial future, and, thus, enhance business'
ability to plan, expand, and build. And I proposed to cut that
deficit not by increasing America's taxes, but by controlling
??
spending and enlarging the American Pie.
My
Federal
Suggestion: continuing economic growth, is that -- th,
yes,
more th
as more people are working, revenues will
My
rise as tax rates remain the same. OK
cal
deficit
( cleased through Rickerton
Low the
target
John wilking
546- 2318 5
As you know, we have begun the budget process. The
we ove working with
check
Administration has acted; now, it is up to the Congress to get
action.
respond.
Our task is to keep the momentum econom going, and growing.
Only then can we create the investment so crucial to America: to
increase new jobs; to unlock new markets; and, yes, to unleash
new technologies.
In a sense, this is typically American. For we are
restless, never satisfied: We look to next week, next year, not
to the year 2000.
Government's role -- its challenge -- is to harness that
ambition by looking beyond today. Last year, a large survey of
CEOs revealed that while American business leaders are inherently
optimistic, they believe -- in this poll, by nine to one -- that
we are too short-term oriented. My plan speaks to the long-term,
and to a stable business climate. It says that to remain
competitive, we must look beyond the next quarterly statement.
It says "Yes" to America's standard of living, and to her future
standing in the world.
For instance, let me address the investment that will result
from cutting the maximum rate on capital gains. My plan supports
reducing it to 15 per cent on long-held assets. Moreover, it
effectively eliminates the capital gains tax on people making
less than $20,000 a year.
6
In 1978, this organization, following the leadership of
Congressman Bill Steiger, worked to reduce the capital gains tax.
Well, today, we must fight that battle again. My friends, a
destructively high tax is like playing the World Series with an
eight man team But Restoring the capital gains differential
will lift revenues, help savings, and free American businesses,
without distorting world markets. Treasury extruation mg
propose proposal will result
more
in
1990 alone
Consider, on the one hand, those competitors who tax capital
gains punitively. By punishing risk-takers, they stifle
opportunity. Less opportunity means less capital to invest.
Less capital, in turn, makes countries less competitive. It's a
vicious cycle, a Catch-22, and above all, an economic dead-end.
On the other hand, keep in mind that the economies of the
three
Pacific Rim the "four dragons" of Hong Kong, Singapore,
taxes(ike
Taiwan, and the Republic of Korea -- exempt capital gains from
13 Wilkers Sub-2318 566
taxes; and our second-biggest trading partner, Japan, scarcely
123/8
ordinal Income
taxed them during her meteoric rise.
what exemphens?
As businessmen, you know this economic history. You know
its lessons are clear. And, like me, you hear a lot about
competitiveness these days. Well, nothing can make America more
competitive than restoring the capital gains differential.
America's entrepreneurs should not have to run an uphill race
against the rest of the world.
7
Tonight, I challenge the Congress to join with me and level
that playing field. I ask it to expand the marketplace and
assist development. I urge it to increase competitiveness and
link reward and risk. How? By lowering the tax rate on capital
gains.
My friends, the Treasury estimates that this cut will add
$4.8 billion to the revenue side of the ledger in Fiscal Year
1990. Let us use it to expand economic freedom, and help people
help themselves. And let us build upon the over 19 and 1/2
million new jobs created in this country since December 1982 --
five times the number created in Japan.
Accordingly, my plan to build a better America recommends a
permanent extension of the Research and Experimentation tax
credit. It will increase domestic research by multinationals,
and end the uncertainty of expiring temporary rules. And by
adopting Federal Enterprise Zones, it will help those untouched
by the economic recovery.
Enterprise Zones are a pioneering initiative to create a
number of Federally-targeted zones -- or areas -- in
economically-distressed communities. By providing tax breaks and
relief from regulation, these zones foster a climate where
businesses are founded, and existing businesses expanded.
8
Enterprise Zones, like lowering the tax on capital gains,
will invest in America's future. And so will other investments:
investments, for instance, in education, in the environment, in
our children, and in space.
As a Texan, I know, first-hand, the role of space
exploration. I know of your industries' involvement, and your
role in its success. My plan allocates an increase of $2.4
billion for the Space Program. This is as much an investment in
our technological future as it is a reaffirmation of our national
character. It supports affordable access to space through the
National Aero-Space Plane program and nine Space Shuttle flights
by 1990. It funds Space Station Freedom, planned for operation
will
in the mid-1990s. I also want to elevate the status of the
President's Science Advisor.
All the unexplored frontiers are not in space; many are
found closer to home as we seek to push back the frontiers of
human knowledge. Toward that end, let us invest in the
Superconducting Super Collider -- a bold new experiment, fusing
science, technology, and education. Let us expand the work which
will leverage America's technological prowess in such areas as
micro-computers, automative electronics, bio-processing, and
high-definition TV. And because science is critical, as I have
said, I intend to double the National Science Foundation budget.
9
These investments are not some river-boat gamble in a
distant future, but a steadfast way to ensure the future. And,
yet, my friends, remember: that future will depend, above all, on
our most precious resource, America's children.
We must make sure that our children are educated -- the very
definition of long-term investment in America's future. That is
why I want Congress to create a $500 million program to reward
America's "merit schools." I intend to create special
Presidential awards in every state. And I urge expanded use of
magnet schools -- giving parents and students the freedom of
choice. I propose a program to spur "alternative certification"
-- allowing talented Americans from every field, especially
science and mathematics, to teach in America's classrooms. - And
through a new program of National Science Scholars, I want to
give America's youth a special incentive to excel in math and
science.
To build a better America, my program also mobilizes
resources to teach our children the truth about the dangers of
drugs. And we have proposed the YES Program -- or Youth Entering
Service -- to involve our kids in their communities.
My friends, our children can make the twenty-first century a
new American Century. So let us help them, guide them. And let
us understand that we are one community -- proud, united, and
unafraid of the future.
10
I found that out in Texas, after Barbara and I packed our
belongings, moved halfway across the country, and founded an oil
company with 250 workers.
It was there that I learned about the people, problems, and
priorities of industry. I made right decisions, and wrong ones.
And I learned how our fate is not divisible: That to build a
company, like to head a family, we must give of, not merely to,
ourselves.
The business of America isn't only business. The business
of business is America.
Albert Einstein said, "Everything that is really great and
inspiring is created by individuals who labor in freedom."
For more than 200 years, Americans have invested their
labor, their talent, their compassion, and their vision to
preserve freedom, to seize the moment, and sustain our way of
life. I ask you: With America's tomorrow at stake, can we do any
less today?
God bless you all, and God bless the United States of
America.
(Smith/Dooley)
March 14, 1989
8:45 a.m.
REMARKS: ELECTRONIC INDUSTRIES ASSOCIATION
J.W. MARRIOTT HOTEL
MARCH 15, 1989
Chairman Little, President McCloskey, members of the
Electronic Industries Association, honored guests, ladies and
gentlemen.
Thank you for that generous introduction, and for the warmth
of your reception.
Bishop Fulton Sheen once said, "The proud man counts his
newspaper clippings -- the humble man counts his blessings." "
Well, I am proud indeed to address this bi-annual dinner.
But let me confess: Tonight, flanked by colleagues and old
friends, I am more grateful for my blessings.
Let me first congratulate this year's EIA Medal of Honor
recipient, my old friend Sidney Topol (TOE-pull). And I want
also to say a word about this organization, the oldest and
largest exploring the new horizons of America's technological
future.
Today, nearly two million Americans work in the electronics
industry. You are leading America's newest industrial
revolution. And you're helping us outwork and outperform any
competitor in the world.
2
As you may know, Barbara is from New York, and I often kid
her about the definition of a New Yorker: "Someone who sees his
neighbors by meeting them in Florida."
Well, tonight we meet as neighbors, and as fellow
businessmen. Our goal is a fairer, more productive, and
ennobling life: Not merely in our time, but for generations to
come.
A more ennobling life can mean many things.
It means education and opportunity. It means. a nation of
responsive citizens -- not only willing but eager to share. And
it means the economic development which makes that sharing
possible. For prosperity depends on growth, and growth depends
on freedom.
My friends, the freedom to dare, to risk, and defy the odds
forms the heart of free enterprise, just as free enterprise is
central to the American dream.
Freedom can give our children a better land than we,
ourselves, inherited. But to preserve it, we must protect it.
That is why I have proposed four objectives to build a better
America: first, reduce the deficit; second, invest in America's
3
future; third, address the problems of the present -- the
problems that cannot wait; and, last but not least, no new taxes.
Yes, America faces immediate problems -- problems like ocean
dumping, the homeless, illiteracy. And, yes, I pledge to you:
We will address them now -- not somewhere down the line. But as
we do, let us move beyond the immediate. For, today, America is
prosperous and at peace. Indeed, some might say that for the
first time since the mid-1960s, we face no crises, foreign or
domestic -- challenges, yes, but not calamities -- no Viet Nam or
rampant unemployment, no energy shortages, no double-digit
inflation.
Therefore, let us recognize that we stand at a special
moment in our history. A moment which may afford America a most
precious gift: the gift of time
not for complacency
not to sit back and reflect upon what has been
but to
reflect upon what might be. Time to take stock; time to think,
calmly, prudently; time to avoid mistakes, and ensure this
nation's destiny.
My four objectives will allow America to use this time, and
seize her moment. Together, they will solidify economic freedom.
Together, they will expand that freedom. But above all, they
will empower more people, more fully, to partake of the American
Dream.
4
Reducing the deficit will free our children from interest
debt which haunts their future. Investing in that future will
prepare us as a people for a new century and its challenges.
Focusing on urgent priorities will free government to marshal its
resources. And no new taxes reflects that innately American
quality - good old-fashioned common sense.
These four objectives will build on the progress of the last
eight years -- they will build a better America. They will
reaffirm our strengths, defuse ticking time-bombs, and re-orient
us as a nation. Above all, they form a new approach which looks
to tomorrow, not today.
Our new approach says that government can do much, but not
everything. It demands that we identify what's necessary to keep
us Number One. It says that the decisions we make, and the
direction we choose, will determine the kind of America in which
our children and their children live.
As President, I am committed to this new approach. That is
why, last month, I proposed an agenda to cut the Federal deficit,
help ensure our financial future, and, thus, enhance business'
ability to plan, expand, and build. And I proposed to cut that
deficit not by increasing America's taxes, but by controlling
spending and enlarging the American Pie.
5
My friends, next year alone, thanks to economic growth,
Federal tax revenues will rise by more than $80 billion -- yes,
more than $80 billion, even with no new taxes.
My plan will use that new revenue to slash the Federal
deficit by more than 40 per cent, bringing the deficit below the
target mandated by Gramm-Rudman-Hollings.
As you know, we have begun the budget process. The
Administration has acted; now, it is up to the Congress to
respond. Our task is to keep the momentum going, and growing.
Only then can we create the investment so crucial to America: to
increase new jobs; to unlock new markets; and, yes, to unleash
new technologies.
In a sense, this is typically American. For we are
restless, never satisfied: We look to next week, next year, not
to the year 2000. Casey Stengel once said, "If you can't imitate
him, don't copy him." Well, as Americans, we don't have to
imitate anyone, nor apologize for our ambition. We are
go-getters; we excel in the short-term; and our genius has
enriched mankind.
Government's role -- its challenge -- is to harness that
genius by looking beyond today. Last year, a large survey of
CEOs revealed that while American business leaders are inherently
optimistic, they believe -- in this poll, by nine to one -- that
6
we are too short-term oriented. My plan speaks to the long-term,
and to a stable business climate. It says that to remain
competitive, we must look beyond the next quarterly statement.
It says "Yes" to America's standard of living, and to her future
standing in the world.
That's what I mean by "investing in the future." And let me
remind you that while I'm referring to economic investments, they
can benefit America socially, culturally, racially, morally. Each
investment can define us as a people. Each can enhance that
moment which comes only once in a thousand years -- the beginning
of a new millennium.
For instance, let me address the investment that will result
from cutting the maximum rate rate on capital gains. My plan
supports reducing it to 15 per cent on long-held assets.
Moreover, it effectively eliminates the capital gains tax on
people making less than $20,000 a year.
In 1978, this organization, following the leadership of
Congressman Bill Steiger, worked to reduce the capital gains tax.
Well, today, we must fight that battle again. For a
destructively high tax is like playing the World Series with an
eight-man team. But restoring the capital gains differential
will lift revenues, help savings, and free American businesses,
without distorting world markets.
7
Consider, on the one hand, those competitors who smother
capital gains. By punishing risk-takers, they stifle opportunity.
Less opportunity means less capital to invest. Less capital, in
turn, makes countries less competitive. It's a vicious cycle, a
Catch-22, and above all, an economic dead-end.
On the other hand, keep in mind that the economies of the
Pacific Rim -- the "four" dragons" of Hong Kong, Singapore,
Taiwan, and the Republic of South Korea -- exempt capital gains
from taxes; and our second-biggest trading partner, Japan,
scarcely taxed them during her meteoric rise.
As businessmen, you know this economic history. You know
its lessons are clear. And, like me, you hear a lot about
competitiveness these days. Well, nothing can make America more
competitive than restoring the capital gains differential.
My friends, how can Congress sit around talking about
competitiveness when it imposes a stiff tax on the rewards of
investment and risk-taking? And how can it talk about a level
playing field when its actions make America's entrepreneurs run
an uphill race against the rest of the world?
Tonight, I challenge the Congress to join with me and level
that field. I ask it to expand the marketplace and assist
development. I urge it to increase competitiveness and link
reward and risk. How? By lowering the tax on capital gains.
8
Let us expand economic freedom, and help people help
themselves. And let us build upon the over 19 and 1/2 million
new jobs created in this country since December 1982 -- five
times the number created in Japan. We want to do still better.
Accordingly, my plan to build a better America recommends a
permanent extension of the Research and Experimentation tax
credit; we need to keep America in the forefront of technological
innovation. My plan will increase domestic research by
multinationals, and end the uncertainty of expiring temporary
rules. And by adopting Federal Enterprise Zones, it will help
those untouched by the economic recovery.
Enterprise Zones are a pioneering initiative to create a
number of Federally-targeted zones -- or areas -- in
economically-distressed communities. By providing tax breaks and
relief from regulation, these zones foster a climate where
businesses are founded, and existing businesses expanded. These
businesses will create many jobs in the targeted communities,
especially for disadvantaged workers.
Already, 37 States have developed Enterprise Zone programs.
It's time we put them to work at the Federal level. Local
communities will benefit. But, more importantly, those who need
a helping hand -- the unemployed, the dispossessed -- will gain
new hope and opportunity: Not across town, but in their own back
yards.
9
Enterprise Zones, like lowering the tax on capital gains,
will invest in America's future. They will encourage progress,
stability, and public confidence. And so will other investments:
investments, for instance, in education, in the environment, in
our children, and in space.
As a Texan, I know, first-hand, the role of space
exploration. I know of your industries' involvement, and your
role in its success. My plan allocates $2.4 billion for the
Space Program. It supports affordable access to space through
the National Aero-Space Plane program and nine Space Shuttle
flights by 1990. It funds Space Station Freedom, planned for
operation in the mid-1990s. I also want to elevate the status of
the President's Science Advisor.
Like America, space embodies freedom -- the freedom which
seeks unexplored frontiers. Toward that end, let us invest in
the Superconducting Super Collider -- a bold new experiment,
fusing science, technology, and education. Let us expand free
trade -- free, but fair trade -- which will leverage America's
technological prowess in such areas as microcomputers, automative
electronics, bio-processing, and superconductivity. And because
science is critical, as I have said, I intend to double the
National Science Foundation budget. In particular, I want to
develop engineering and scientific research centers which link
university, government, and industry labs.
10
Investments, all, in research and development: Not some
river-boat gamble in a distant future, but a steadfast way to
ensure the future. And, yet, my friends, remember: That future
will depend, above all, on our most precious resource, America's
children. By investing in them, we can shape America's dreams of
the twenty-first century.
To build a better America, my program mobilizes resources to
teach our children that drugs are wrong. And we have proposed
the YES Program -- or Youth Entering Service -- to involve our
kids in their communities. We want to help them understand that
a successful life must include serving others.
But most of all, we want to make sure that our children are
educated -- the very definition of long-term investment in
America's future. For if excellence breeds achievement, then
excellence must be rewarded -- in grade school, in high school,
and at our colleges and universities.
That is why I want Congress to create a $500-million program
to reward America's "merit schools" -- the schools which improve
the most. I intend to create special Presidential awards in every
State. And I urge expanded use of magnet schools -- giving
parents and students the freedom of choice.
I propose a program to spur "alternative certification" --
allowing talented Americans from every field, especially science
11
and mathematics, to teach in America's classrooms. And through a
program of National Science Scholars, I want to give America's
youth a special incentive to excel in math and science. Many of
these students will one day choose careers based in new
technology. We must ensure they are prepared.
My friends, our children can make the twenty-first century a
new American Century. So let us help them, guide them, as free
men and women. Let us build the better America that they, like
we, deserve. And let us understand that we are one community --
proud, united, and unafraid of the future.
I found that out in Texas, after Barbara and I packed our
belongings, moved halfway across the country, and founded an oil
company with 250 workers.
It was there that I learned about the people, problems, and
priorities of industry. I made right decisions, and wrong ones.
And I learned how our fate is not divisible: That to build a
company, like to head a family, we must give of, not merely to,
ourselves.
The business of America isn't only business.
The business of business is America.
12
Albert Einstein said, "Everything that is really great and
inspiring is created by individuals who labor in freedom."
For more than 200 years, Americans have invested their
labor, their talent, their compassion, and their vision to
preserve freedom, to seize the moment, and sustain our way of
life.
I ask you: With America's tomorrow at stake, can we do any
less today?
Thank you for inviting me. Thank you so very much. God bless
you all, and God bless the United States of America.
ELECTRONIC INDUSTRIES ASSOCIATION
1988 Annual Report
INDUSTRIES
RIE
EST 1924
<
ELECTRONIC INDUSTRIES ASSOCIATION
1722 EYE STREET, N.W.
SUITE 300
WASHINGTON, D.C. 20006
202-457-4900
Table of Contents
Executive Report to the Industry
3
Components Group
4
Consumer Electronics Group
6
Government Division
10
Industrial Electronics Group
14
Telecommunications Sector
16
Engineering Department
20
Marketing Services Department
22
Public Affairs
24
Administration & Finance
26
Government Relations Department
28
EIA Committees
32
Electronic Industries Foundation
33
1988 Spring Conference
35
1988 Fall Conference
36
EIA Organization
37
Board of Governors
38
Senior Staff
41
Industry Vice Presidents
42
1
FEE HH
EEH EELL
11 II
Executive Report
hange, challenge and success were all part of the Electronic Industries As-
to the Industry
C
sociation's 1988 and the dynamic industry it represents.
As EIA completes 64 years of service to the electronics manufactur-
ing community, it continues to be the premiere trade organization
representing the industry, protecting its interests and aiding in the shaping of its
future.
For our industry, 1988 represented a very good year. U.S. factory sales of elec-
tronics grew nearly nine percent to a record breaking $242 billion. Electronics ex-
ports were up significantly for 1988, thus reducing the negative trade balance by
"Change, challenge and
nearly 33 percent.
We at EIA are proud of the role we played in our industry's success. Our work
success for our industry
in the legislative, regulatory, public affairs and technical standards arenas is high-
lighted on the following pages of this annual report.
EIA's specific efforts in policy areas such as international trade, tax, national
and the Association."
security as well as human resources and space policy have done much to create an
environment conducive to increased growth, and profitability. We were honored
when the Republican National Committee invited EIA to testify at its platform
hearings, during their convention in New Orleans. We were particularly proud when
they accepted a number of key EIA positions and incorporated them into their plat-
form for 1988.
This year a major milestone in the Association's history was passed when con-
struction started on EIA's new modern 11 story, 150 thousand square foot office
building. Construction of the new EIA headquarters reflects the industry's strong
commitment to and sincere belief in its primary trade organization.
Another major milestone for EIA was the successful merger of its Information
and Telecommunications Technology Group (ITG) with the U.S. Suppliers Associa-
tion (USTSA), to form the Telecommunications Industry Association (TIA). TIA, a
separate but affiliated association, now acts as EIA's telecommunications sector and
works in concert with other EIA industry Groups and Divisions in furthering overall
electronic industry goals and objectives. The merger resulted in a stronger EIA and
more effective representation on behalf of the telecommunications industry.
Industry participation in Association sponsored shows, meetings, seminars and
workshops continued to grow at a rapid pace. Certainly one of the highlights in this
area was when President Reagan addressed the 1988 EIA Government/Industry Din-
ner. The occasion marked the first time a President addressed a major EIA meeting
in person and thus confirmed the importance of this industry to our nation's econo-
John F. Mitchell
my. As the Reagan Administration comes to a close, we at EIA can look back with
1988 Chairman,
Board of Governors
pride on the accomplishments of our Association, in cooperation with government,
which resulted in a stronger electronics industry and national economy. We now
prepare for the future. To that end we are working with the Bush Transition Office
in an effort to establish a dialogue that will enable our industry to continue the
progress which has been made on the cooperative public and private sector front.
We look forward to a New Year, a new Administration and a new era. And as
we look forward, we are optimistic that, as in 1988, we shall see change, challenge,
and success for our industry and the Association.
Peter F. McCloskey
President,
Electronic Industries Association
John
On the preceding page is an artist's
rendering of the new EIA head-
quarters, the James Monroe Build-
3
ing, in Washington D.C. It is
expected to be completed and ready
for occupancy by late 1989.
Components
he Components Group, the largest segment of EIA in terms of member
Group
T
companies, is comprised of the Parts, Electronic Display and Tube, Micro-
wave Tube, Distributor Products, and the Solid State Products Divisions.
The year's activities started off with the Fourth Annual Surface
Mount and Reflow Technology Conference and Exhibition (SMART IV) being
termed an unqualified success as 656 persons attended the event. The conference,
which opened with Chairman Dick Rosen, AVX Corporation, stating, "I offer you
the challenge that our surface mount and reflow technology is an opportunity for us
to keep more of the electronics in the hands of U.S. manufacturers," was similar in
format with the previously successful arrangement of triple concurrent sessions divid-
ed into components, electronic interconnections, and equipment. Exhibitors oc-
cupied the maximum fifty spaces of the two-year old exhibition.
Also at the beginning of the year, the Electronic Display and Tube Division was
notified that the U.S. International Trade Commission (ITC) had decided that
"The 1988
penalty duties must be assessed on imports of color television picture tubes from
Japan, South Korea, Canada and Singapore. For several years, the Division had peti-
tioned the ITC and the Commerce Department that imports were injuring the
experience has
domestic industry and its workers.
CROSSTALK '88, the national electronic conference designed to provide an
provided a clear
open, informal forum between distributors and manufacturers, was held in February
in San Diego. The theme of the meeting, "Partnering for the 90's", was
predominant in the panel discussions, presentations by industry authorities, and
focus to the
workshops during the two and one-half day conference.
In addition to regularly scheduled Eastern, Midwestern and Western Region
road ahead."
credit meetings, the Fourth National Credit Committee meeting was held in Febru-
ary in Ft. Lauderdale. The two-day seminar, which was open to all electronic
manufacturers' credit management personnel interested in improving their ability to
deal with credit problems, addressed "The Tax Reform Act of 1986", "The Pros and
Cons of Buying Groups and The Effect on Credit", in addition to a half-day, hands-
on workshop on analyzing credit reports and making credit decisions.
The Distributor Products Division, in addition to conducting CROSSTALK '88
and regional management, advertising and sales educational meetings, sponsored the
Electronic Distribution Show and Conference with the National Electronic Distribu-
tors Association and the Electronic Representatives Association. The conference is
not only a major showcase for electronic products sold through industrial distribu-
tion but is also a prime opportunity for dialogue among distributors, suppliers, and
representatives.
Roger Cornett
John L. Hutson
James E. Kyle
Cooper Industries
Sola Electric, A Unit of
O-1 Neg TV Products, Inc.
Belden Wire and Cable
General Signal
Chairman, Electronic Display
Chairman, Components
Chairman, Distributor
and Tube Division
Group
Products Division
Chairman, Parts Division
Herbert J. Rowe
Owen E. Pallakoff
Thomas W. Jones
Senior Vice President, Components
Teledyne MEC
Siliconix, Inc.
Group
Chairman, Microwave Tube
Chairman, Solid State
4
Division
Products Division
The Microwave Tube Division experienced an active year of meeting, planning,
lobbying, and writing in support of its objectives for the industry. With the ten
member companies representing 95% of the power tube manufacturers in the U.S.,
the Division speaks with one voice concerning the importance of their industry to
the security of the country. They are greatly concerned with the dearth of govern-
ment sponsored R&D to enable the development of improved weapons systems.
ELECTRONIC
COMPONENTS
SELLINGIN
Other objectives include a revision of DoD procurement practices to provide a more
CONFERENCE
effective system for controlling costs and improving performance, and more specific
1988
procedures for tracking tube reliability throughout its service life. The goals for 1989
PROCEEDINGS
have been determined and the tasks assigned. The 1988 experience has provided a
CROSSTALK
/
clear focus to the road ahead.
METHENG
The Parts Division continued co-sponsorship of the 38th Electronic Compo-
nents Conference, the premier forum on the latest developments in design, fabrica-
MA ELECTRONIC
tion, and use of electronic materials, devices, components and systems, as well as
sponsoring the Quartz Devices Conference and Exhibition in Kansas City which
ORGANIZATION
RIBUTORS
celebrated its 10th Anniversary. For the fifth straight year, proceeds from the
OF
ORGANIZATION
QDC&E were earmarked to support extensive university/industry directed piezoelec-
ELECTRON
OPERATION
tric resonator, oscillator and filter research and experimental programs.
SOLID
TUB
EIA's Solid State Products Division (SSPD) has made significant progress this
PRODUCTS
year in the areas of semiconductor standardization through its JEDEC Subdivision,
and Data Interchange standardization through its Electronic Data Interchange For-
mat (EDIF) Subdivision.
Among JEDEC's notable accomplishments are the creation of three significant
/
REGISTRATION
OF 975 THE
documents that will play a major role in allowing the purchase of commercial
Devices
Welcome
products for military use. These documents are: a specification for plastic packaged
semiconductor product; a standard for Statistical Process Control (SPC); and a
10th
standard for measuring outgoing quality in parts per million (PPM).
10th
EDIF has started a new Monograph Series that will consist of tutorial descrip-
Exhibition Quartz Devices and
tions of how to use EDIF in specific applications. The first volume, "Introduction to
EDIF", was published in September, 1988.
EDIF and JEDEC are also involved in the general effort in EIA to resolve the
TOTH
role Design Automation will play in our future.
The Components Group embarked on an extensive membership campaign, the
Quart Devices
fruits of which should appear in the first quarter of 1989.
PROCEEDING
As a result of the change in EIA membership eligibility requirements, the Dis-
1988
I
tributor Products Division, the Electronic Display and Tube Division, the Parts Divi-
SMART
sion and the Solid State Products Division changed their eligibility requirements.
IV
All of these divisions will accept into division membership U.S. companies which
manufacture or have affiliated companies manufacture for them, products within
their division scope provided division dues are paid in accordance with the EIA By-
SMART
Laws. The Microwave Tube Division decided to leave its requirements as previously
approved. Associate membership is now available in all of the divisions of the
Group.
The Components Group's various seminars and exhibition programs are well attended by
The Quartz Devices Conference and
industry executives.
Exhibition celebrates its 10th anniversary.
5
Consumer
988 proved to be a year of challenge and opportunity for CEG. The
1
challenge came in the form of issues facing the consumer electronics indus-
Electronics Group
try. Consumer, legislative and technological issues were to be resolved, and
CEG maintained its leadership role in resolving these issues.
Balancing the challenges, however, were many-faceted opportunities. CEG was
in the unique position to promote a burgeoning industry whose growth had tem-
porarily slowed, and we took advantage of this opportunity by stressing the positive
contributions made by our industry to the consumer and to the U.S. economy.
At all times, CEG strives to represent the diverse interests of major marketers
in the $40 billion-plus U.S. consumer electronics market.
Through CES - the semi-annual focal point of the industry - and a host of
other activities, CEG contributed to the long-range growth and vitality of one of
America's most exciting and diverse industries.
Government and
During 1988, CEG's Government and Legal Affairs Department won several
Legal Affairs
legislative, regulatory and judicial battles.
Working with the Home Recording Rights Coalition, CEG blocked legislation
which would have restricted sales of digital audio tape recorders (DAT). Bolstered by
a government study faulting an anti-taping chip proposal, CEG created a legal
defense fund to assist its members in any DAT-related lawsuit.
CEG also joined its members in successfully opposing legislation restricting
dealer terminations. In a key decision on dealer termination, the U.S. Supreme
Court agreed with the industry's position as stated in the CEG amicus brief.
Although the industry lost a key gray market case at the Supreme Court, CEG
did support legislation restricting gray market imports. CEG also successfully op-
posed a bill which would expand manufacturers' reporting requirements to the Con-
sumer Product Safety Commission (CPSC).
The CPSC, FCC and Food and Drug Administration granted CEG modifying
legislation on warranties, gray market, VDTs, dealer termination and parts distri-
bution.
Engineering
Home Automation. The CEG Consumer Electronics Bus (CEBus) Committee has
taken standards development of a unified hand control system via the power line,
twisted (telephone) pairs, coaxial cable, and infrared to a demonstration of products
from different manufacturers which will be held during the 1989 Winter Consumer
Electronics Show in January. The committee is a national effort that enjoys the
strong support of companies both large and small, CEG members and non-members.
Thomas P. Friel
Jack Pluckhan
Donald Palmquist
Keith Schaefer
Group Vice President,
Quasar Company
Yamaha Electronics
NEC Home Electronics
Consumer Electronics Group
Chairman, Consumer
Corporation, Inc.
(U.S.A.) Inc.
Electronics Group
Chairman, Audio Division
Chairman, Home Information
Equipment Division
"Stressing the positive
contributions made by
our industry to the
consumer and to the
Dennis S. Corcoran
Donald F. Johnstone
Vice President, Consumer Electronics
Philips Consumer Electronics
Show
Company
6
Chairman, Video Division
U.S. economy."
Advanced Television (ATV). CEG Engineering is participating on its own behalf
in the FCC ATV Advisory Committee and is acting as a resource via the expertise
of CEG member companies.
EIA MULTIPORT. The TV receiver manufacturers, working in conjunction with
the cable television equipment manufacturers and system operators, are in the
process of upgrading EIA Interim Standard No. 15 (the EIA MULTIPORT) prior to
issuing it as a full EIA/ANSI Standard. The new version of the standard will incor-
porate an optional Y/C input (S-VHS) and will also facilitate communications from
the hand-held remote control to the CATV decoder. This last feature will enhance
the offering of pay-per-view (PPV) services over CATV systems, while at the same
time, minimizing customer confusion.
Improved AM Broadcast Service. EIA, manufacturers, broadcasters and the Fed-
eral Communications Commission are cooperating to improve the quality of the
AM broadcast service based in part on two standards jointly developed by the CEG
and broadcasters.
High definition television. Digital audio. Stereo broadcasting. Home automa-
Communications
tion. Industry and Consumer Electronics Show promotion, statistics and milestones.
These were only a few of the concerns addressed by the CEG Communications
Department in 1988.
The communications program included the CEG Annual and Quarterly
Reviews, the Media Spokesperson Tour, a Gallup study on consumer electronics
ownership and usage, newspaper supplements and the sponsorship of programming
on PBS. In addition, we continued to promote our award-winning industry film
"Parade," produced the first-ever CES Promotional Opportunities Kit, and continued
the Executive News Summary mailings.
The reach of the CEG Communications Program extended to the 150 million
Americans in 75 metropolitan areas who viewed or read interviews with industry
spokesperson Jack Wayman; the millions of PBS viewers who enjoyed performances
live from Wolftrap, the National Park of the Performing Arts: and the thousands of
representatives of the print and broadcast media who cover the two Consumer Elec-
tronics Shows annually.
Chairman of EIA's Advanced Television
Committee, Sidney Topol (Scientific-Atlanta,
Inc.), testifies before House Energy and
Commerce Subcommittee on Telecommuni-
cation on the future of high definition
television.
EIA's Advanced Television Committee enjoys wide industry participation and is making
steady progress on a number of key issues related to the development of high definition
television standards.
HDTV
INFORMATION
The HDTV Information Center is a
A Service of the Electronic Industries Association
major project of EIA and is support-
ed through CEG.
7
Product Services
CEG's Product Services Department recognizes the need for on-going technical
training and maintenance of a high level of technical expertise in the consumer
electronics industry. In 1988, the department sponsored more than 44 workshops in
37 U.S. cities, with special emphasis on CD, VCR, digital, and microprocessor train-
ing. Another resident VCR school was opened in Long Beach, CA, complementing
EIA's widely accepted programs located in Tampa, Chicago, and Dallas.
Building on the success of its resident VCR training schools, 11 five-day "hands-
on" seminars aimed at technicians currently employed in the service industry were
sponsored in 1988.
This year Product Services completed three videotapes in an on-going series of
training tapes: Professional Car Audio Installation, Positive Consumer Relations, and
Troubleshooting with Modern Test Equipment-Part II.
CEG's Product Services staff and members continued to support both the Inter-
national and U.S. Skill Olympics competitions involving the assembly and servicing
of hi-fi stereo, TV, VCR and other electronic products which create a pool of well-
trained employable electronics technicians - a definite value for the consumer elec-
tronics service industry. CEG also sponsored the individual who won the bronze
medal in electronics service competition during the international contest in Sydney,
Australia, the second consecutive bronze medal earned by an American.
Consumer Affairs
In 1988 CEG's Consumer Affairs Department distributed more than 250,000
consumer education pamphlets to individual consumers, educators, consumer organi-
zations and government agencies. These pamphlets are intended to improve the con-
sumers' purchasing abilities in the marketplace.
Added to the expanding library of 17 pamphlets this year are three on accessory
products: Care and Maintenance Products, How to Choose and Use Accessories, and
How to Install, Connect and Expand. Before the end of 1988 there will be at least
two pamphlets published in Spanish (Care and Maintenance and How to Choose
VCRs, Camcorders and Tape) and an updated version of Compact Discs and Players.
With the co-sponsorship of the Federal Trade Commission, a fourth pamphlet on
Service Contracts and Service will be added to the Federal Consumer Information
Center.
Other Consumer Affairs activities in 1988 included the Consumer Complaint
Assistance Program which handles hard-core unresolved complaints with CEG act-
ing as a catalyst, mediator, or arbitrator. The Consumer Electronics Roundtable,
composed of five manufacturer representatives and nine from various consumer dis-
ciplines (consumer protection agency, educator, senior citizens, service industry, con-
sumers and the Federal Consumer Information Center) provided a forum for the
exchange of views and initiated studies and education projects. Another activity was
the popular consumer column "Ask Sally," which was sent monthly to some 4,000
suburban newspapers, plus the speeches and seminars such as one on small business
and the consumer at the University of Massachusetts.
CEG Group Vice President Tom Friel announces results of a major Gallup study on con-
sumer electronics ownership and usage during a press conference.
8
The Consumer Electronics Shows maintain their prominence as semi-annual in-
Consumer
dustry gathering places. They focus not just the industry's attention but also that of
consumers world-wide on dynamic new technologies, products and programs. They
Electronics Shows (CES)
rank high among the largest annually-held trade shows in the world, presenting an
unparalleled array of audio, video and home information products to tens of thou-
sands of retail buyers, distributors and representatives as well as nearly two thousand
press attendees per show.
The 1988 Winter CES featured 1,380 exhibitors in 759,699 square feet with
103,540 attendees. Home office, "edutainment," mobile electronics, telephones and
audio and video hardware and software expanded their display space. David R.
Gergen, former editor of U.S. News & World Report, delivered the keynote address.
Due in large measure to declining industry profitability and thus budget con-
straints, the Summer CES experienced a slight drop off with 98,651 attendees,
1,249 exhibitors and 730,520 square feet of exhibit space. However, the show upheld
its traditional standards for delivering the vast majority of consumer electronics buy-
ers to our show. The expanding specialty audio exhibits were consolidated in the
McCormick Center Hotel after an extensive search for adequate quarters.
Home office products, telephones and "edutainment" products again posted sig-
nificant increases in exhibition space.
The Hon. James C. Miller III, Director, Office of Management and Budget,
delivered the keynote address.
?
INFORMATION
ASSOC EST. 1924
PRODUCT LOCATOR
PRODUCT
MESSAGES
FISHER
FISHER
WORKSHOPS
WORKSHOPS
SANYO
FISHER
FISHER
I
Jack Wayman, retired EIA senior vice presi-
dent and CEG traveling media spokesman,
PRODUCT
LOCATOR
receives EIA's Distinguished Service Award
from Association Chairman John Mitchell
(Motorola, Inc.) (R) and EIA President Peter
F. McCloskey (L).
SONY
600
TOSHIBA
TOSHIBA
The Winter and Summer Consumer Electronics Shows are the premiere events and the
definitive market place for the dynamic consumer electronics industry.
9
Government
D
uring the year, the Government Division and its members directed con-
Division
siderable resources to address the negative business environment arising
from allegations of misconduct in defense contracting.
The resultant government restrictions on the release of information to defense
contractors via consultants and other channels have been partially offest by many
Division programs such as the annual Ten-Year Forecast of Defense Markets, and
other meetings of Division groups with senior defense representatives.
Successful programs were initiated, including cosponsorship of a Financial Im-
pact Study which quantified the adverse impact on the defense industrial base, tech-
"In summary, EIA's
nology and national security, if the current legislative and regulatory disincentives
continue over the next four to five years. The Study was widely presented to Con-
Government Division
gressional and Defense Department leaders. A second major activity involved an
educational effort with the industry workforce on the relationship of the defense
budget and R&D funding to current and future employment. An innovative PR ac-
is a proven, effective
tivity was the third leg of this effort to restore public confidence in the defense in-
dustry. In addition to press briefings, a number of timely articles were written and
distributed to thousands of suburban newspapers.
industry-government
Several new initiatives were authorized by the Board, including Health Care
Cost Containment, Anti-Defense/Anti-Nuclear Local Initiatives, Business Ethics,
interface furthering
and Eligibility of Foreign-Owned U.S. Corporations.
This increased activity was carried on with no diminution of Division efforts in
the other highly regarded areas described in this report.
national security."
Opportunities for direct industry dialogue with Congressional and Defense lead-
ers continued, highlighted by the Annual Government-Industry Executive Round-
table, which this year featured discussion with the four Joint Logistics Commanders,
and Congressmen Mavroules and McCurdy. Division statements on government ac-
quisition related topics were presented at five congressional hearings.
Active member company support of Board and other Division activities re-
mained at a generally high level. Efforts were undertaken to bolster several commit-
tees in need of additional participation.
Cooperation with other Associations on issues of mutual concern has provided
effective leverage for certain Division efforts.
Market Planning
Government Division members participated in, and benefited from, major con-
ferences, publications, diskettes, and direct telephone queries. As members of the
Requirements Committee, these business strategists and market researchers planned
together how best to meet the needs of Division member companies. They op-
timized the opportunity for industry to meet with government counterparts and ex-
change ideas in non-competitive fora. Almost 1,000 industry and government
persons attended conferences sponsored by the Requirements Committee.
The Annual Spring Conference, featuring the higher ranking personnel in the
Office of the Secretary of Defense and the Armed Services, explored the issues of
"Prioritizing RDT&E Investment in a Constrained Budget Environment."
John D. Rittenhouse
GE Aerospace
Chairman, Government Division
VIP's attend EIA Annual Government/Industry Dinner. The Honorable James C. Miller III,
director, Office of Management & Budget; Ronald Barnhart, Honeywell, vice chairman,
Jean A. Caffiaux
Government Division; John Rittenhouse, GE Aerospace, chairman, Government Division;
Senior Vice President, Government
General Arthur E. Brown, Jr., vice chief of staff, U.S. Army; Jean A. Caffiaux, senior
Division
10
vice president, Government Division.
A special conference was presented on "Embedded Processing - Challenges for
Pointers For Parents
Of
the 21st Century," which brought together the recognized leaders in that technologi-
DANGER THE DEFENSE PROCUREMENT SCANDAL
cal arena.
The Fall Conference, the "24th Annual Ten-Year Forecast of the Defense Elec-
FAIR IS FAIR
tronics Market," included missions and programs analysis, a perspective of global
defense markets, member company "Panel of Presidents" looking at strategic
ARMS
CONTROL
direction-making in a declining DoD marketing environment and three market seg-
AND
THE
DEFENSE
BUDGET
ment studies: Battlefield Electronics, Air Defense Initiatives and Recompetition.
WORD
Planning was initiated for a Federal Information Systems study, to gauge the
FROM
telecommunications requirements of the government agencies in areas other than
Language
mission-critical computer resources. Also in planning for next year, in cooperation
with the Air Force Logistics Command, is an Advanced Planning Briefing to Indus-
try "High Tech is Big Business in AFLC."
BUSINESS ETHICS
The value of the Government Market Planning Information Service (GMPI) in-
creases. Time-sensitive documents, distributed every two weeks, help keep the busi-
ness planner abreast of DoD policy shifts, key testimony, budget data, and
Ending
professional information. Annually, over 8,000 pages are sent to aid each subscriber
cessary
determine business strategy and tactics.
The R-1 and P-1 data on diskettes continues to be a valuable electronic tool to
assist market researchers in their analysis of the RDT&E and Procurement line items
of the DoD budget. The data is continually refined to provide users EIA hardware
category assignments, mission area assignments, and historical data.
Enter
The professional development role continued to help raise the level of expertise
of the members, including "Market Research - Its Function and Purpose in the
Corporation."
Two new subcommittees were established: The International Subcommittee,
looking outward to a global defense requirement, and the Federal Information Sys-
tems (FIS) Subcommittee, which will adapt the current defense-oriented studies tec-
EIA's Government Division produces arti-
nique and move to analyze potential markets in the U.S. civil agencies.
cles for local news outlets nationwide.
The Government Procurement Relations Council (GPRC) and Legislative
Regulatory and
Affairs Council (LAC) Defense Issues Committee provided support to Government
Legislative
Division members on a diverse array of issues affecting the way the Defense industry
does business. Congress and the DoD procurement policy changes set the agenda for
government relations activities of the Council and the Defense Issues Committee.
A Small Business Act reform measure became the vehicle for change to govern-
ment requirements for contractor utilization of small disadvantaged businesses
(SDB's). Despite EIA efforts, a new penalty provision permits the assessment of liq-
uidated damages on contractors failing to make "good faith efforts" to achieve SDB
contracting goals.
Other more positive, legislative changes were monitored and encouraged. Allow-
ability of foreign selling costs under DoD programs was reinstated for the first time
in nearly a decade.
Similar positive treatment was achieved which required DoD to cease en-
couragement of mandatory uncompensated overtime by bidding service contractors.
EIA will be represented in the Congressionally-mandated advisory committee estab-
lished to assist DoD in developing new regulations.
EIA testimony was presented at five congressional hearings on such issues as
procurement fraud, reauthorization of OFPP, profit reporting, R&D, and export
licensing.
Through a combination of media briefings and writing and distribution of arti-
Public Relations/
cles, the PR Committee continued its efforts to achieve balance in news reports of
Industry Image
defense industry matters. Six articles were prepared covering various aspects of
defense contracting, each of which was distributed to 4,000 suburban newspapers,
and a one-minute radio editorial was distributed to 5,000 local radio stations. This
effort was targeted at smaller papers nationwide to supplement the press briefings
and interviews with major publications. Results of this program are encouraging.
The Committee also addressed nationwide efforts of anti-defense, anti-nuclear
groups which are counter to U.S. national security objectives, and has established a
dialogue with the Defense Department and others in this regard.
Steps were also taken to facilitate intra-company contact between those having
responsibility for PR, legislative and procurement matters.
11
The Export/Import Committee acted on a wide range of international defense
matters, including offsets, foreign selling costs, licensing procedures, MOU's, Foreign
Availability, and NATO matters. Testimony was presented by the Committee Chair-
man on the need for reform of the State Department's Office of Munitions Control
(OMC) at a hearing of the House Foreign Affairs Committee. Crux of testimony was
lack of adequate staffing and equipment to handle ever increasing licensing load at
OMC. Congressional and regulatory outcome of foreign selling costs and offsets was
reasonably favorable and efforts continue to get greater government recognition of
foreign availability in considering license applications.
Committee meetings provided opportunity for members to exchange views with
Defense and State Department representatives, and plans were initiated to publish a
revised edition of the highly regarded Practical Guide on Export Licensing.
Congressman Dante Fascell, chairman of
The Committee held its popular sixth International Award/Reception for indus-
the House Foreign Affairs Committee, (L)
try and U.S. and foreign government guests, highlighted by presentation of the
with David Danjczek, Litton, chairman
award to Rose Biancaniello of OMC for her "professionalism and objectivity in mat-
of the Division's Export/Import Commit-
ters associated with electronic exports in support of national policy."
tee (R) following Mr. Danjczek's testi-
mony on behalf of EIA.
IR&D/B&P Independent
Division representatives worked within the multi-association IR&D/B&P Com-
Research and
mittee and, at the request of DoD, provided recommendations on how to make
more effective the DoD administration of IR&D/B&P. As a result, DoD is im-
Development and Bid
plementing the recommended two-year cycle reporting and on-site reviews which
and Proposal
can result in substantial savings in engineering resources and money. Congress
dropped the IR&D/B&P ceiling but requires DoD to submit a report identifying
long range objectives and recommendations for funding. The multi-association com-
mittee worked closely with the Defense Policy Advisory Committee on Trade
(DPACT) which urged DoD not to redefine nor reduce its support of IR&D/B&P,
and to improve its administration of the IR&D/B&P program.
Industry contacts with senior OSD and service officials and congressional ele-
ments to preserve the integrity of the IR&D/B&P levels resulted in published Secre-
tary of Defense Carlucci support for increased funding.
Efforts are planned to brief new administration officials, members of the Con-
gress and the transition team on the nature of the IR&D/B&P program.
Quality
The Quality Committee participated in the new OSD policy of Total Quality
Management and encouraged uniform DoD policy on non-conforming material. Ac-
cordingly, the Air Force "GET SPEC" and the DLAR 8200.10 will be cancelled in
favor of a single tri-service document. The committee developed a position on the
elimination of fixed AQL's and LTPD's in military specifications. Comments relating
to the Army's proposed contractual clause to implement Total Quality Management
were submitted.
Computer Resources
The Computer Resources Committee (G34) efforts resulted in the release of the
Software Development DoD-STD-2168 Rev. A, and efforts will continue for simplifi-
cation. This year saw a concerted combined Reliability effort to revise MIL-STD-785
to include Software Reliability. The committee continued in the mainstream of DoD
activity related to the DoD Management of Mission-Critical Computer Resources,
the DoD Software Technology Initiative and the JLC Computer Software Manage-
ment.
Materials Procurement
During the year, two of the most pressing procurement issues addressed were
Materials Resource Planning (MRP) and Subcontracting Goals with Small Disadvan-
taged Business (SDB). While it appears that the legislative outcome of the MRP is-
sue was favorable, the regulatory implementation is uncertain. Matters are worse in
the SDB matter where strong congressional pressure from the Black and Hispanic
caucuses makes it difficult for a constructive industry-government resolution. Sub-
stantial industry effort by EIA, in cooperation with others, continues. During the
year the Materials Procurement Committee sponsored two special sessions with elec-
tronic distributors to help clarify responsibility for quality issues, and addressed other
topics, including paperless procurement, supplier rating systems and sub-contract
management.
Acquisition Streamlining
The Technical Council and G Panel Engineering Committees continued to
spearhead efforts with the Defense Department in furthering Acquisition Stream-
lining with several significant achievements, including the issuance of the Federal
12
Acquisition Regulation (FAR) to incorporate Acquisition Streamlining policies which
will drive contracting officers to include appropriate contract requirements. Addi-
tionally, a CODSIA effort resulted in identifying 50 significant DoD documents
which contain counterproductive requirements and identified 78 existing quality
documents and recommended that most of these could be replaced by one tri-
service non-contractual guide for top quality management. Since the beginning of
the Acquisition Streamlining initiative, 12 programs have realized average savings of
over $240 million.
The Manufacturing Operations and Technology Committee (MOTC) developed
Manufacturing Operations
an active interface with the Institute of Manufacturing Automation Research
and Technology
(IMAR), a project which ties together several university engineering schools in a
joint effort to improve manufacturing efficiency and competitiveness of industry
operations. EIA members are providing support to encourage meaningful research
projects, train engineers in manufacturing operations, and to facilitate the transition
of new technology from the laboratory to the factory floor. During the year, the
MOTC visited Arizona State University and its Computer Integrated Manufacturing
System Research Center and a visit to the manufacturing facilities of Texas Instru-
ments and tour of the Boeing Electronics assembly plant.
The component devices groups, both passive and active, have continued to fo-
Electronic
cus on issues related to soldering and solderability and device susceptibility to solder
heat. The DoD-STD-2000 series has created a set of new problems and issues; e.g.,
Component Applications
excessive "how-to" contents, the lack of "tailorability", excessive cost to comply, the
impracticality of several solder processes to comply with the requirements of all
three military departments and still another for industrial applications. These issues
have led to an effort by the joint DoD/industry team to merge the requirements
into one document from which contractors will select appropriate requirements ap-
plicable to the specific program.
The Data and Configuration Management committee (G-33) has continued its
Data and
efforts in DM/CM training in-house and at the college level. Twelve colleges have
Configuration
introduced data management and configuration management courses and negotia-
tions continue with another dozen schools. As a result of a review of the recently
Management
revised DoD Directive 5010.19 "Configuration Management", a recommendation was
made to incorporate a series of changes that will allow cancellation of the DoD In-
struction 5010.21 and MIL-STD-1456 as unnecessary, the consolidation of several
CM Plan Data Item Descriptions, and create an umbrella standard for CM without
adding to the number of military standards. G-33 continues to work closely with
DoD to simplify the proposed DoD Standard for Acquisition of a Data Package and
has continued efforts to develop guidelines for the transition from current Data and
CM practices to the automated environment.
G-33/G-34 sponsored a workshop panel to assist in the further definitization
and refinement of the CALS Strategic Plan.
The Service Contracts Committee, in personal and written contacts with Con-
Contract Services/
gress, advanced the positive reasons for contracting-out and helped dispel their fears
of antagonizing constituents who may be affected. The Committee also urged cog-
Contracting Out
nizant Senate members to consider a different disposition of savings realized from
contracting-out than that proposed in pending legislation. It was recommended that
50 percent of the savings remain with the contracting command or agency as an in-
centive for conducting the comparisons and making the awards.
The Committee commented on the issue of uncompensated overtime, expressing
the view that it is unfair to both the employees affected and the companies which
bid the work at the prevailing rate. Committee meetings concentrated on efforts in
the Executive Branch to push privatization, and on the results of the Office of Fed-
eral Procurement Policy "A-76" position reviews and studies decreed by the Presi-
dent's recent Executive Order.
EIA's Government Division is a proven, effective industry-government interface
furthering national security.
David Demarest, Bush Transition Office
communications director (C) speaks to
EIA Senior Vice President Jean Caffiaux
and Government Division, Public Rela-
tions Committee Chairman Hugh Burnes,
Lockheed, (R) before briefing the
Committee.
13
Industrial
T
he Industrial Electronics Group has broadened its scope by adding the As-
sistive Devices Division. The group already incorporated the Closed Cir-
Electronics
cuit Television Manufacturers Association (CCTMA), the Industrial
Automation Division and the Power Sources Division.
Group
The Assistive Devices Division (ADD) celebrates its first year of existence, a
year that has seen strong growth in membership, and progress on a number of divi-
sional objectives. The division has embarked on a major project to increase public
awareness of assistive devices, and their potential for improving the lives of persons
with disabilities. ADD is exploring strategies for providing low cost financing to
consumers of assistive devices. In the upcoming year, ADD plans to strengthen ties
with other EIA divisions and councils to pursue common objectives. ADD is
presently collaborating with the Engineering Department, the Human Resources
"Through innovation
Council, and interests within the Consumer Electronics Group to develop guidelines
for human factors design of consumer products so that they are accessible to a broad
market of consumers, including persons with various functional limitations.
and development of
The CCTMA arranged for a closed circuit television pavilion at the Interna-
tional Security Conferences East and West. By doing this, all of the principal closed
circuit television equipment manufacturers who are members of the CCTMA were
new technologies the
located in the same area. This enabled prospective customers to visit all of the sup-
pliers without having to spend time going through areas which featured other types
IEG continues to grow."
of products. The members found this very beneficial to their sales effort and plan to
continue it in future shows. In addition, educational seminars were conducted at
both of these shows, providing information to users and installers of the equipment.
Support by experts from the member companies made these events extremely suc-
cessful.
New requirements for the testing of closed circuit television equipment used in
bank and mercantile installations were announced by the Underwriters Laboratories.
Through close cooperation with the U.L., modifications and explanations were sup-
plied which will enable member companies to continue active participation in this
marketplace. The CCTMA Engineering Committee is preparing several new stand-
ards which will provide for easier utilization of various manufacturers' equipment.
Gary G. Petersen
Robert L. DeLia
John L. Hutson
Weltek International
Math Associates, Inc.
Sola Electric, a unit of
Chairman, Industrial
Chairman, Closed Circuit
General Signal
Electronics Group
Television Manufacturers
Chairman, Power Sources
Chairman, Automated
Association
Division
Equipment Division
Herbert J. Rowe
Carl Brown
Senior Vice President,
IBM Corporation
Industrial Electronics Group
Chairman, Assistive Devices
Division
14
The Industrial Automation Division (IAD) has focused on developing an
industry-wide statistical program. Through participation on the Joint Trade Associa-
tion Committee on Industrial Automation Statistics, this program has received wide
acceptance. A Market Analysis Committee has been formed to develop, in coopera-
tion with the U.S. Bureau of the Census, a macro-economic model on capital ex-
penditures in the industrial automation industry.
The Power Sources Division continues to participate in the Power Sources
Council with the National Electronic Manufacturers Association (NEMA). This
Assistive
joint effort enables companies to fully participate in marketing and engineering ac-
Devices
dditions
tivities whether they belong to either EIA or NEMA.
Division
Electronic
Industries
Assoc
iation
Through innovation and development of new technologies the IEG continues to
grow.
Assistive
ated Assistance Act Becomes Law
Devices
dditions Bectronk Division 2000
Washington
EIA
Year 1984 Two: Thoughts Lawrence From the Chair
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The EIA/CCTMA Pavillion during the ISC-East Show,
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September, 1988 in New York City.
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A strategic planning session between industry executives, Jack Driscoll and Ken
O'Connell of Murata Erie North America and EIA executives, Herb Rowe and Pete
Walsh.
15
Telecommunications
Sector
S
ince April, 1988, the telecommunications interests of EIA have been represented
by the Telecommunications Industry Association ("TIA"). TIA was formed by
the merger of the U.S. Telecommunications Suppliers Association and the In-
formation and Telecommunications Technologies Group of the Electronic Industries
Association. TIA, through a separate association, represents the telecommunications
supplier industry and acts as the telecommunication sector of EIA. Currently, TIA
"Representing the
has nearly 600 members.
At its organizational meeting, John Boyd of AT&T was elected Chairman of
telecommunications
TIA and Allen R. (Mike) Frischkorn, the President of USTSA, was elected Presi-
dent of TIA. At TIA's annual Board of Directors meeting in August, 1988, Allen
Dawson of Seicor succeeded John Boyd as Chairman.
industry in association
The purpose of the merger of USTSA and the EIA/ITG was to provide a single
voice for the U.S. telecommunications industry. Another purpose was to create a full
with the Electronic
service trade association to provide a complete array of services to member com-
panies.
Following the merger, the first order of business for the association was to re-
Industries Association"
structure itself to meet the needs of the telecommunications industry. At the annual
Board of Directors meeting a new organizational structure was adopted, new by-laws
were approved and a new dues schedule was implemented. The new organization in-
cludes a two-tier structure of standing committees and product sector divisions. The
standing committees are the International Committee, the Public Policy and
Government Relations Committee, the Marketing/Trade Shows Committee, the
Technical Committee, and the Membership Scope and Development Committee.
The product sector divisions are the Network Equipment Division, the Mobile
Communications Division, the Fiber Optic Division, and the User Premises Equip-
ment Division. A separate division, Roadrunners International, provides services to
individuals working in the telecommunications industry.
TIA
International Committee. The TIA International Committee focuses on ways to
Standing Committees
increase the sales of U.S. telecommunications products overseas. During 1988 the
committee pressed for adoption of legislation to open up foreign markets to U.S.
telecommunication products. This effort proved successful as Congress passed and
the President signed the Omnibus Trade and Competitiveness Act of 1988. The
legislation contains provisions empowering the President to negotiate greater
overseas market access for U.S. telecommunications equipment manufacturers. The
committee is working with the Office of the U.S. Trade Representative to imple-
ment those provisions. The committee also sponsors trade missions and hosts foreign
buying delegations as part of its effort to increase the overseas sales of U.S. telecom-
munications suppliers. A number of foreign delegations were hosted at TIA's SU-
PERCOMM Trade Show in Atlanta. In November, a conference was held in Bali,
Indonesia, to showcase the capabilities of U.S. telecommunications suppliers to
representatives of a number of ASEAN countries. Also in November, an Honorary
and Friendly Membership agreement was signed with the Communications Industry
Association of Japan to enhance cooperation between the U.S. industry and its
Japanese counterpart.
Public Policy and Government Relations Committee. The TIA Public Policy
and Government Relations Committee operates under the direction of the TIA
Board of Directors to establish public policy positions and strategies that represent
Allen W. Dawson
Allen R. (Mike) Frischkorn
Seicor Corporation
President, Telecommunications Industry
16
Chairman, Telecommunications Industry
Association
Association
the consensus of the membership. During 1988, the committee focused considerable
effort on organizational issues. It established a number of issue sub-groups to address
the various categories of issues of concern to the membership. Legislatively, it has
been active on the industry structure and competition issue, international trade is-
sues and regulatory issues. During 1989, the industry structure and competition issue
is expected to occupy a considerable amount of the committee's time.
Technical Committee. The TIA Technical Committee tracks standards activities,
SOME
establishes positions on technical issues, and coordinates with and monitors the ac-
tivities of the T-1 committee, FO-TR Committees and domestic and international
standards setting organizations. The Technical Committee will play a major role in
coordinating TIA standard activities. During the coming year, a major focus of the
committee will be raising the profile of TIA in the international telecommunica-
tions standard setting process. The Technical Committee has also established an
HDTV subcommittee to monitor developments in that new technology and to assess
its implications for TIA members.
Marketing/Trade Shows Committee. The Marketing/Trade Shows Committee
assists member companies in identifying and developing markets of interest, develops
TELECOMMUNICATIONS
data on market size, growth rate and trends, promotes and develops industry trade
shows and conducts seminars on how to use trade shows effectively. The largest U.S.
telecommunications trade show, SUPERCOMM, is co-sponsored by TIA and the
U.S. Telephone Association ("USTA"). In May of this year the show was held in At-
lanta and attracted nearly 15,000 attendees. In October of this year TIA co-
sponsored Network '90's in San Francisco, California, with USTA, and Pacific Tele-
INDUSTRY ASSOCIATION
sis. In late October, TIA sponsored the U.S. Pavillion at Expo Comm China '88 in
Beijing, China. TIA will also sponsor the U.S. Pavillion at ITU's Telecom '91 Trade
Show to be held in Geneva, Switzerland, in October, 1991. Additional trade shows
are also under consideration.
Membership Scope and Development Committee. TIA's Membership Scope
and Development Committee is responsible for reviewing annually the membership
of TIA to evaluate whether changes might be necessary in the classes of member-
ship or the structure of the association. Periodically, the committee will survey the
membership to assess whether association programs and activities are meeting mem-
bers' needs and to determine what new activities or directions might be appropriate.
A survey of the membership is anticipated in 1989. The committee is also responsi-
ble for developing programs to increase the membership of the association. It is ex-
pected to be quite active during the coming year as TIA continues to develop its
agenda.
Opening the door to better business
development on both sides of the Pacific,
TIA President Allen R. Frischkorn winds
up the historic cooperative agreement
ceremony by presenting CIAJ Chairman
Katsushige Mita with an honorary TIA
membership certificate.
Toasting the signed Memo of Understanding (MOU) merging the U.S. Telecommunica-
tions Suppliers Association (USTSA) and the Electronic Industries Association's
Information and Telecommunications Technologies Group (EIA/ITG) to form the Tele-
communications Industry Association (TIA) are: (L to R) EIA President Peter F.
McCloskey, EIA Chairman John F. Mitchell (Motorola, Inc.), USTSA Chairman John
Boyd (AT&T), USTSA President Mike Frischkorn.
17
Product
Fiber Optics Division. The Fiber Optics Division mission is to (1) promote the
Sector Divisions
growth of the U.S. fiber optics industry through TIA, (2) within TIA, be the "ex-
pert" on fiber optic technology issues, and, (3) lead in establishing national and in-
ternational technical standards for fiber optics.
The member companies of the Division have formed two new issue related
committees which will be coming to grips with major concerns of the industry. The
committee on High Definition Television will be working to provide an accurate and
definitive assessment of fibers' contribution toward bringing this new viewing ex-
perience to the American public. The new committee on Fiber to the Home will be
taking a broad look at the industry to put together a comprehensive plan which will
eliminate the barriers and accelerate the use of fiber in the local loop. As new
issues surface from these two initial projects, other committees will be formed to ad-
dress the particulars.
The two division engineering committees are working closely together and
achieving record standards production. The Optical Communications committee,
INNETI
FO-2, has defined nineteen system test procedures for their working groups and bal-
loting at the industry level is underway on several standards. The components com-
mittee, FO-6, continues its work on test procedures, as it nears the mark of 100
GTE's Freeman Robinson (GTE) (C), and
published FOTP's, and is growing more proficient monthly in drafting and revising
TIA VP Peter Bennett (L), testify on H.R.
procurement specifications.
2213, the Telephone Hearing Aid Compati-
In 1989, the Division plans to host another DOD-ANSI Symposium on Fiber
bility Act of 1988, before the Telecommuni-
Optics Standards, building on the success of a previous seminar held in December,
cations Subcommittee of the House Energy
and Commerce Committee.
1987. The engineering committees plan to incorporate fiber optic sensors into their
1989 plans as a means of better identifying and defining the use of this new meas-
urement medium in the industry.
Mobile Communications Division. The Mobile Communications Division has
had another active year, during which its section's made over a dozen formal filings
in FCC rulemaking proceedings. The major thrust continues to be the long-term
objective to secure adequate spectrum to accommodate the dynamic growth of the
two-way radio, cellular and cordless telephone industries. Membership increases in
both the policy and technical committees have broadened the range of industry par-
ticipation and the commensurate contributions to committee deliberations.
All three sections have active technical standards programs, and a new subcom-
mittee, TR-45.3, has been formed to accelerate the development of standards for a
new generation digital cellular telephone system. An excellent symposium on this
subject was conducted by the Cellular and Common Carrier Radio Section in
August, 1988, and a sequel is being planned for 1989.
Technical standards, cooperatively deve-
loped with EIA, are a major part of the TIA
program.
Pru Wehle and Director Wang of PRC launched an informative discussion of telecommuni-
cations progress between their respective countries.
18
Network Equipment Division. The Network Equipment Division begins 1989
GENEVA 3.8 OCTOBER 1989
with new officers and a new commitment to become involved in issues of im-
portance to its members. The development of technologies such as High Definition
Television, Open Network Architecture, and a Mobile Satellite System will offer the
division new opportunities to address both policy and technical issues. The division's
technical committees continue to work on several microwave and satellite related
standards, consistent with a divisional objective to develop and maintain a govern-
ment/industry forum on a broad range of state-of-the-art technologies. The formal
appointment of division representatives to each of TIA's program committees is ex-
pected to increase member interest in such areas as international trade, marketing,
and legislative affairs.
User Premises Equipment Division continues to exercise leadership in critical
areas within its expertise. One such area is premises wiring for telecommunications.
The division submitted important comments in the FCC's inquiry on this subject,
and our engineering committees continue to work toward the completion of the first
comprehensive voluntary industry standards for residential wiring, and for commer-
cial and industrial wiring. This latter effort has led to the exploration of building
architecture for communications wiring, and we are engaged in a unique joint effort
with the Canadian Standards Association to devise architectural standards applicable
both in the U.S. and Canada. Meanwhile, the engineering committee for data trans-
Electronts Norld
mission systems and equipment, which has set the standard for data equipment in-
terconnection for over 25 years with its RS-232 interface, is working on several new
standards for interfaces needed by the growing data industry. It has also expanded its
TIA will host the USA Pavilion at ITU-
work to include domestic and international standards for modems and modem pro-
COM '89 in Geneva, Switzerland.
tocols.
The telephone terminal equipment engineering committee has completed major
revisions of its terminal equipment standards. It will soon complete work on com-
prehensive test specifications for the evaluation of equipment being registered under
Part 68 of the FCC rules. The new TIA document will replace an obsolete FCC
publication.
Roadrunners International. Roadrunners International is an industry service or-
Other
ganization sponsored and funded by TIA. Its focus is on human interest issues of
Activities
concern to the industry. Through its newsletter it keeps its members informed of
moves, promotions, retirements, new hires, serious illnesses, deaths, etc. Should a
member become unemployed, Roadrunners International provides a network to help
that member find a new job. Should a member need to hire someone, Roadrunners
International can help a company find a new employee. Membership is open to any-
one in the telecommunication industry. Currently, Roadrunners International has
nearly 4,000 members.
TIA
PREMISES WIRING
FOR
TELECOMMUNICATIONS
REGISTRATION
TIA organizes a full program of technical seminars and engineering standards activities
for the industry.
19
Engineering
T
he EIA Engineering function continues to expand its work on new tech-
Department
nological fronts, publication services, international activities and Govern-
ment liaison.
Publications. 1988 saw the continuation of increases in both the number of
projects started and in the number of documents published. Figure A graphically
demonstrates this trend. In addition, a concomitant increase in the number of meet-
ings and or meeting-days has also occurred. This latter increase is to be expected
given the basic vitality of the industry and is therefore reflected in the increase in
published documents.
"Continuing to serve
The primary thrust of EIA Engineering activities is the production of standards
that define the characteristics of electronic products, equipment and systems. To this
end, there are a number of activities that are pursued jointly with other organiza-
the industry to support
tions. One of these areas is Surface Mount Technology.
We have been a leader in the development of the basic thrusts of the Surface
and maintain its
Mount Council, formed at our behest and consisting of members principally from
EIA, IPC and the DoD. As part of its activities, the Council publishes an annual
Status and Action Plan that outlines where we are and where we would like to be
leadership."
in the future.
For 1989, the Council has set twenty tasks it will work on during the year. All
tasks have as their objective the orderly facilitation, coordination, and promotion of
Surface Mount Technology - leaving the actual development of needed standards
up to the appropriate standards developers.
In addition to the major work going on in our divisions, two new departmental
committees have been formed. One, the Soldering Technology Committee, is now
looking at all aspects of this problem as it affects our division committees SO that a
single basic standard may ultimately be achieved for this technology. In addition, a
VHDL (VHSIC Hardware Description Language) Standardization Committee has
been formed that is addressing the development of specifications for VHDL Models,
as well as specifications to permit the validation of those models, and to assess the
Quality of the Models.
Design Automation. The VHDL activity just described has resulted in EIA
undertaking a major new thrust in Design Automation. At its October 19th meet-
ing, the EIA Board of Governors was briefed concerning a new DoD Directive re-
quiring delivery of VHDL documentation and performance analysis by defense
contractors. The requirement has broad implications in both the Defense and com-
mercial markets. The Board authorized the establishment of an Ad Hoc Committee,
to be comprised of concerned industry members, to determine the feasibility of an
industry cooperative effort, perhaps with DoD participation, to define, procure and
validate computer models to meet these requirements.
An integral part of the Design Automation function is the ability to provide
economic and accurate data interchange for manufacturing. Within the electronics
John Feehan
Clinton Electronics Corporation
industry, and especially within the semiconductor sector, this function is being ac-
Chairman, Engineering Department
complished via the standard developed by the Electronic Design Interchange Format,
EDIF as ANSI/EIA-548, published in May 1987. This standard, in combination
with the VHDL standard language is fast becoming the design language and inter-
change format of choice within our industry, both in the commercial, and more es-
pecially, in the military market sectors.
Since the military is a major force in the evolution of VHDL, as well as the
overall concept of design automation, it is not surprising that a separate entity with-
in the DoD has been formed to address this need. The DoD Office is called CALS
(Computer Aided Acquisition Logistics Support). CALS is a DoD and Industry in-
itiative to enable and accelerate the use and integration of digital technical informa-
tion for weapon systems acquisition, design, manufacture, and support.
EIA has been actively involved with the CALS effort on two fronts. The first,
through the Government Division's active participation on their Industry Steering
John M. Kinn
Committee, and second, through the EIA Ad Hoc CALS Evaluation Committee of
Staff Vice President, Engineering
the Engineering Department which has evaluated the applicability of VHDL, EDIF,
Department
IGES, and IPC standards for use in the Design Automation process and produced a
report recommending specifically how each should be applied and comprehended wi-
thin two newly issued DOD standards, MIL-D-28000, and MIL-STD-1840A.
20
Other DOD initiatives in which EIA Engineering has played a key role is the
creation of an OEM funded Pilot Program, under the auspices of the NECQ-System,
for auditing of semiconductor manufacturers. This program is designed to shed light
on the best mechanisms needed to provide an effective third-party audit of the parts
manufacturers on behalf of the OEMs SO that both segments of our industry can
benefit through minimizing duplication of effort, and the wasting of engineering ta-
lent. Initial results have shown a number of areas that need to be addressed and as
a result the Pilot Team has revised its approach and entered Phase Two of its Pro-
gram. The integration of audits of passive component manufacturers is now under
consideration by this Program.
As a collateral issue, the Electronic Components Certification Board (ECCB)
authorized creation of a Transition Team to develop a plan, in conjunction with the
DOD, to provide the means for our industry Quality Assessment System, the
NECQ, to be adopted by DOD for their use in the assessment of non-JAN parts. A
EIA Engineering Meetings provide the
forums for voluntary standards activities
major proposal has been developed by the ECCB Team in conjunction with the
which are necessary for U.S. competitive-
Multi-Association Planning and Implementation Team for Microcircuit Acquisition
ness in the world marketplace.
(P&I Team) and is under consideration by the DOD.
EIA Engineering continues to play a major role within the International Elec-
International
trotechnical Commission (IEC) and its Quality Assessment System, the IECQ.
Activities
The IECQ-System now has forty U.S. manufacturers who have joined the sys-
tem, compared to one hundred and twenty worldwide.
EIA's Passive Parts committees, Fiber Optic committees, Semiconductor commit-
tee, Telecommunications committees and Consumer committees are active in de-
veloping specifications that will be used in the system.
-
In 1988 EIA signed a formal- cooperative agreement with the Chinese Electron-
ic Standardization Institute (CESI). This agreement now provides our engineering
EIA VISUAL REFERENCE STANDARD
COMPONENT BULLETIN
committees with the opportunity to interact more effectively with their counterpart
EIA 359-A
in mailnand China. Given major changes taking place in this country, wherein
terence Optic Guide Test Procedures for
major U.S. manufacturers are entering into joint venture agreements, this coopera-
tive activity should help shape the standards used in that country in a form that is
1988
BE
advantageous to the U.S.
In a similar vein, activities under our cooperative agreement with our counter-
part in Japan (EIAJ) have flourished in the past year, with four joint working group
PUBLICATIONS
Eela
meetings having taken place. A new Technical Management Committee has been
21st
formed to oversee the work of the specific joint working groups, and assess the need
Computer
for creation of additional joint working groups as we see areas of technology that
Data
and
I
and
would benefit by a mutual approach to their standardization.
STANDARD
/
I
The work of the EIA Engineering function has expanded markedly over the
Interface
Between
Data
past few years, mainly as a result of the expansion of new technologies in the mar-
Equipment
and
Data
Circu
Terminating
Equipment
Seriol
Binary
Date
ketplace, and the growing recognition that standardization, in many cases, helps ex-
pand those markets both nationally and internationally. This vital EIA function will
Introduction to EDIF
#
continue to serve the industry to support and maintain its leadership.
EDIE
120
Growth of Engineering Publications
EIA
STANDARD
Standards Proposals
100
Published Documents
EIA
STANDARD
EIA
INTERIM STANDARD
80
STANDARD
Format
General
Statistic
-
Recommended Version 200 Standard EIA-548
60
JEDEC
EDIF
BLECTING
40
1
20
1985
1986
1987
1988
21
Marketing Services
he EIA Marketing Services Department functions as the authoritative
T
source of statistical and analytical market information on the U.S. elec-
Department
tronic industries. The Department serves the EIA membership with mar-
ket activity reports, special reports and surveys, market analysis, a Market-
ing Services Research Center, as a government and industry liaison, and through
various statistical publications.
Activity in 1988 has centered on introducing and implementing the Automated
Reporting and Retrieval System (ARRS). The ARRS provides for electronic report-
ing of company data and electronic retrieval of composite industry information, as
an enhancement to the existing market activity report processing system. The
Department has also been enhancing its analytical capabilities, refining projection
methodologies, and improving existing statistical programs. Increased awareness of
Department programs and services has resulted in greater participation in statistical
programs and increased member usage of Research Center facilities.
"The authoritative
In 1988, the Department's AUTOMATED REPORTING AND
RETRIEVAL SYSTEM (ARRS) was installed at EIA, tested, and promoted to
source of statistical and
potential users. A standing-room-only crowd attended an introductory ARRS semi-
nar at the EIA Spring Conference. An informative slide presentation was followed
analytical market
by a technical demonstration. An EIA Fall Conference seminar featured a panel of
pilot test participants and a full-screen computer presentation. The fully operational
ARRS will be available to all program participants in early 1989.
information on the U.S.
MARKET ACTIVITY REPORTS provide hundreds of participating
manufacturers with reliable and current composite industry information on the size
electronic industries."
and growth of their respective industry. These reports are developed from confiden-
tial company data reported directly to the Department in accordance with strict
security procedures. The Market Activity Report Handbook, a detailed program par-
ticipant guidebook, was released at the EIA Spring Conference. The Department
continues to recruit new participants and initiate new reports. Current Market Ac-
tivity Report efforts focus on more analytical interpretation of the reports and the
addition of explanatory graphs.
As commissioned by any EIA group, division, committee, department, council,
or panel, Marketing Services Department SURVEYS AND SPECIAL
REPORTS provide accurate and in-depth coverage of timely issues.
The Marketing Services Department is assisting with the CEG-sponsored Color
TV/HDTV Study. This two-fold study assesses the impact of the domestic manufac-
ture and assembly of color television on the U.S. economy, and delves into the
potential impact of High Definition Television (HDTV) on the U.S. color TV in-
dustry and the economy in general.
A quarterly Survey of Color TV Domestic Production and Imports was devel-
oped to provide tube manufacturers with an accurate measure of the domestic color
TV picture tube market. The annual Capacitor Industry Wage Rate Survey was
completed with responses from twenty-six plant locations. The Department also
conducted a special survey on sales of AC-type capacitors from 1981 through 1987.
The Department also released its semi-annual CRT Demand Survey, providing
data on the present and future demand for color TV picture tubes, display and
Ronald L. Stier
monitor CRTs, as well as TV sets and monitors. The annual Five-Year Tube Forecast
Cooper Industries-Belden Wire and
Cable
was published, covering expected sales and R&D for high vacuum, gas & vapor and
Chairman, Marketing Service
special purpose tubes, microwave tubes, and electro-optical devices. For the micro-
Department
wave tube industry, the Department published surveys covering both plant capacity
utilization and R&D expenditures.
The Department continues to increase its emphasis on RESEARCH AND
ANALYSIS, providing quarterly forecasts of U.S. factory sales of electronic products
by industry sectors as well as semi-annual general economic outlooks. Analytical
summaries and graphs are now being added to a number of Department reports and
publications. More in-depth interpretation of trends will augment statistics in the
future.
The EIA Index of Electronic Business Activity now features a new easy-to-use
format with a separate section of statistics/graphs for each of the industry sectors.
The special monthly report provides participating manufacturers with monthly trend
indicators for shipments, new orders, and unfilled orders.
The consensus estimates of Consumer Electronics U.S. Sales are released at the
Clinton S. Lee
Consumer Electronics Shows. In 1988, the product scope was expanded to include
Staff Vice President, Marketing Services
home security systems and videogame software, with additional research information
Department
22
on home office equipment.
Projection Methodology Task Forces have been created as industry monitors to
Electronics Employment
review and evaluate the statistical trends reflected in the market activity reports.
(Thousands of Workers)
The Task Forces have centered on clarifying the product scope of reports, reviewing
Workers (000)
700
projection methodologies, identifying available research studies to enhance current
methodologies, discussing report participation and developing recruitment strategies.
Introduced in 1984 for the purpose of tracking, collecting, and disseminating
600
industry market information, the MARKETING SERVICES RESEARCH
CENTER exists as an information retrieval and referral service for EIA members
and staff. Member utilization of the Research Center continues to increase, due in
500
part to in-person orientation sessions which educate EIA members about the
Center's resources. The monthly Research Center newsletter, UPDATE, has grown
400
continually in terms of scope, size, and readership. An updated Resources Guide was
September
1987
developed, adding all acquisitions since the first edition in 1987.
September
The Research Center continues to expand its resources, which include access to
1988
300
hundreds of on-line databases such as CorpTech, Dow Jones, NewsNet, and Dialog;
the latest U.S. government statistics; technical reports and journals; periodicals;
reference books; and market research abstracts. Customized requests are handled by
200
professional information specialists.
The Department's role as a GOVERNMENT/INDUSTRY LIAISON is grow-
100
ing in importance in light of current foreign trade issues and the U.S. adoption of the
Harmonized Commodity Classification System, effective January 1, 1989. The Market-
ing Services Department continues to increase member awareness of government publi-
0
cations and information. In addition, a request was submitted to the International
Trade Commission recommending import category breakdowns for the following: cam-
corders, LCD TVs, telephone sets & answering devices, radar detectors, scanners,
cathode ray tubes, tantalum capacitors, quartz crystals & quartz devices, image intensifi-
Company
Communer
er tubes, switches, connectors, power supplies, and variable resistors.
A comparison of scopes for EIA and various other electronic industries trade associa-
tions was developed, with plans for routine updates. Joint cooperative efforts were initiat-
ed between the Department and the Variable Resistive Components Institute (VRCI).
The Marketing Services Department publishes a wide range of PUBLICATIONS
$ Billions
on the U.S. electronic industries. The authoritative statistical encyclopedia on the U.S.
U.S. Balance of Trade
10
electronic industries, Electronic Market Data Book, has been published annually for over
September Year-to-Date
thirty-five years with the latest facts, figures, and explanations of trends. The Depart-
1987-1988
ment continues to publish the monthly statistical guide, Electronics Foreign Trade, and
September
1987 Y-T-D
an annual compilation of export and import data, Electronics Foreign Trade Five-Year
5
September
Summary.
1988 Y-T-D
The bi-monthly Department newsletter, FOCUS, continues to report on the latest
Department statistics, publications, activities, and plans, while also informing the
readership about up-to-date government information. A symbol-based promotional
0
brochure on general Department products and services was also developed and released
in 1988, as a basic introductory pamphlet/publications order form.
-5
$ Billions
1987-1989 Estimated
100
U.S. Factory Sales of
1987
Computers/Industrial
Electronic Products
-10
1988E
80
1989E
-15
Communications
60
Related Products
COMMUNITY
/
11
Components
Total
40
Consumer
20
0
Note: Consumer electronics sales include imports.
E = estimate.
23
Public
edia liaison, meetings and conventions, publications and special
M
projects, are the key elements of EIA's active Public Affairs Depart-
Affairs
ment. As the focal point for queries from the public, media and
government, EIA responds to a wide range of questions on various
issues and activities concerning the electronics industry and the Association. The
Department keeps EIA in the forefront as the authoritative source for industry infor-
mation.
Another significant area of responsibility for Public Affairs is the Department's
liaison with senior staff from the White House, and other Executive Branch depart-
ments, and agencies as well as Congressional offices. The Department routinely as-
sists in communicating EIA positions directly to key government decision makers.
Media Liaison
Daily the Public Affairs Department responds to numerous media inquiries con-
cerning the rapidly changing technologies of the electronics industry. The Depart-
ment issues approximately 100 news releases a year covering major EIA testimony,
industry positions, activities, issues, awards and achievements.
In order to ensure the greatest possible coverage of the Association's varied mes-
sages, the Department maintains a comprehensive media list containing numerous
journalists representing the trade and general press. Publicity for EIA sponsored
meetings, seminars, trade shows and publications is also a major responsibility of the
Department.
On-site supervision of media activities at EIA meetings plays a key part in the
Department's activities. Arranging interviews, providing media with schedules, bio-
graphies, photographs and other general information are all part of the Department's
varied press room operation. Press information kits are produced and updated regu-
larly for media use as well as the creation of special press kits at the specific request
of EIA Groups and Divisions.
Meetings and
One of the most critical areas of any association is that of the planning and im-
Conventions
plementation of its meetings, conventions, seminars and conferences. The Public
Affairs Department, through its professional full-time meetings manager, arranged
more than 100 meetings and other functions.
From site selection, contract negotiations and scheduling to actual on-site
management, the Department's staff does everything possible to make sure that EIA
meetings are not only informative and productive but enjoyable as well.
The Department is responsible for selection and invitation of high level speakers
for the Association's major meetings and enjoys an excellent rapport with the senior
level federal officials and members of Congress. This Spring the Department was
particularly proud when its efforts resulted in President Reagan appearing before one
of the Association's most important events, the Annual Government/Industry
Dinner.
Mark V. Rosenker
Vice President, Public Affairs
Department
"Keeping EIA in the
forefront as the
36
42
authoritative source for
37
industry information."
This year's Annual Government/Industry Dinner, with President Reagan as guest speaker,
had record attendance and was one of the highlights of the Association's meeting and
convention schedule.
24
Keeping EIA members as well as the general public apprised of the Association's
Publications
varied activities is an important objective of its publications program. Some of the
Department's more popular publications include:
The EIA Annual Trade Directory and Membership List - A directory of member
companies, corporate and division locations, phone numbers, trade names and
EIA organizational assignments as well as geographical locations and facilities.
It also includes a section on electronic product categories;
EIA Publications Index - A comprehensive catalog of all publications of audio
visual materials produced by the Association listing their price and availability;
EIA Annual Report - Comprehensive overview of the yearly activities high-
lighting the Association's objectives and accomplishments;
Executive Report - Keeps its readers up-to-date on legislative proposals, hear-
ings, engineering standards, industry sales trends. It also contains general infor-
mation concerning the Association and its members;
Electronic Market Trends - A monthly publication providing subscribers with
up-to-date statistical data, market information, political and legislative issues
involving the electronics industry.
EIA
1988
report
EIA
Reagan Addresses Annual Dinner EIA/Government
[
TRENDS
EIA
SMA
EIA
PUBLICATIONS
INDEX
Industry
ELECTRONIC
INDUSTRIES
EIA
ASSOCIATION
December 1988
complied
This year being an election year and transition to a new Administration, the
Special Projects
Department was tasked as EIA liaison to the Office of the President-Elect. The
Department coordinated the industry's position papers as well as EIA briefings to
the Transition Office officials and scheduling of Transition Office briefings to As-
sociation Groups/Councils. The Department also acted as the Association's liaison
to the Presidential Inaugural Committee.
Working with the Consumer Electronics Group, the Department aided in the
development and implementation of the Association's new High Definition Tele-
vision (HDTV) Information Center.
SUBCOMMITTEE
ON THE
ECONOMY,
JOBS,
BUDGET
Mark Rosenker, EIA vice president, Public
Affairs (L) discusses his testimony with Con-
gressman Don Ritter (R-PA) (C) and Repub-
lican Platform Committee member Andrew
EIA
Natsios (R) before testifying at the Republi-
can National Convention.
Press Room
Public Affairs Department assists press in gaining access to the Association's guest speak-
ers and industry leaders. FAA Administrator T. Allan McArtor meets with press before
addressing the EIA Annual Spring Conference Luncheon meeting.
25
Administration
T
he Administration and Finance Department is responsible for coordinating the
and Finance
administrative functions of the Association including: accounting, building oper-
ations, computer and communication services, personnel and production. The
Department
Department's primary mission is to manage the day to day operations of the nation's
premier electronics association.
Accounting
The Accounting Office oversees the day-to-day financial operations of EIA and
the Electronic Industries Foundation. The monthly management reports prepared by
this office assist the group and division executives in administering their operations.
Building Operations
In March, 1988, EIA sold its headquarters building at 2001 Eye Street, N.W., to
2001 Associates, a limited partnership of which EIA is a 50% limited partner. The
partnership purchased the building adjacent to the EIA building and has demolish-
ed both buildings. Construction has started on the James Monroe Building, a
151,000 square foot office building. It is expected that the building will be ready for
occupancy in late 1989. The offices EIA were relocated to their temporary head-
quarters at 1722 Eye Street, N.W., during 1988.
Computer and
The EIA mail list, with approximately 30,000 names, is the responsibility of
Communication Services
this office. This mail list is the life-blood of the Association.
Technical support is also provided from this office to the ever increasing number
of computer users within EIA.
Personnel
Coordination of employee benefits and employee administration functions is
managed by the personnel office. This office also coordinates EIA recruiting efforts
and implements personnel policies.
Production
EIA is proud of the work produced in-house in its printing and production facil-
ities. State of the art equipment in this operation enables EIA to efficiently produce
professional looking publications, newsletters and letterheads.
00
00
00
00
Elizabeth A. Hartnett
Staff Vice President, Administration and
Finance Department
"Managing the day to
day operations of the
With a budget of more than $25 million, the Administration and Finance Department
nation's premier
keeps accurate track of the Association's financial activities.
electronics association."
26
Moving the Association's staff, equipment
and records from its 20 year home to its
temporary quarters is not an easy chore,
however the Administration and Finance
Department coordinated the effort and
completed the task in an efficient and
effective manner.
raid
MOVERS
AVERIA
THE 8 STATES
II
An artist's rendering of the new EIA headquarters building in Washington. It is expected
EIA's in-house production shop prints and
to be completed and ready for occupancy by late 1989. The new building will be named
mails thousands of Association publications
the James Monroe Building.
and materials.
27
Government
he focus of EIA's activity in addressing major public policy issues with
Relations
T
general impact on the electronic industries resides within the Government
Relations Department and its Councils and Committees. In the area of in-
ternational business and trade policy, taxes, human resources, government
Department
procurement and other legislative issues of concern to the EIA membership, the
Department provides organized structures through which company representatives
may develop positions and work to achieve meaningful policy changes. Although
the ebb and flow of Congressional attention and action on key policy issues largely
determines the pace and emphasis for Department activities, regulatory matters and
"Bringing together
policy developments within the Executive Agencies represent an important and
growing area of concern to the issue-oriented councils of the Department.
industry's government
Legislative Affairs Council
relations professionals
The EIA/LAC forms the organizational core for Department efforts to monitor and
take action on legislative developments affecting the industry. Monthly meetings
for concerted action on
bring together government relations professionals from member companies for an
across-the-board overview of current developments in tax, trade, space, defense and
current legislative and
domestic issues. The information-sharing and related discussions at the meetings
form the basis for collective action in lobbying on key issues. The LAC also ad-
dressed legislative issues at two highly successful off-site conferences with Congress-
regulatory issues."
men and their staffs. The 11th annual Captiva Conference, taking place during the
April recess period, brought together EIA representatives with key members from the
many Congressional committees acting on industry issues. The 6th annual August
Congressional staff retreat at Homestead, VA provided similar opportunity for dia-
logue with Congressional staffers in panel discussions organized by the LAC commit-
tees. In both conferences, EIA representatives were able to present industry concerns
to key public policy decision makers.
Under the leadership of Chairwoman Laramie F. McNamara, TRW Inc., a new
brochure was published describing the structure and functions of the EIA Govern-
ment Relations Department. The brochure describes each of the councils and com-
mittees which forms the department, providing a composite view of the many
activities open to involvement by EIA member company representatives. Copies of
the brochure are available on request to the department. The five sections which
follow describe the substantive concerns and accomplishments of the department's
councils and committees.
Kevin Richardson
Staff Vice President, Government
Relations Department
W.C. (Chic) Rideout
William Kaschub
Patricia A. Sherman
IBM-Federal Systems Div.
GTE North Inc.
General Electric Company
Chairman
Chairman, Human Resources
Chairman, International
Government Procurement
Council
Dan C. Heinemeier
Business Council
Relations Council
Executive Director, GPRC
Laramie F. McNamara
Louis F. Castelli
TRW Inc.
AT&T
Lisa Kjaer
Chairman, Legislative Affairs
Chairman, Tax Council
Executive Director, IBC
Council
28
International Business Council
This year, Congress continued to focus its attention on the huge arrray of trade and
competitiveness proposals contained in the Omnibus Trade Bill. The EIA/IBC
played a major role in the drafting and eventual passage of the Omnibus Trade and
International
Competitiveness Act of 1988. Major focus was maintained on streamlining of export
Business
controls, and many of the provisions requested by EIA last year were adopted, in-
Council
cluding elimination of certain re-export requirements, decontrol of exports of certain
low-level products and technology, and establishment of a distribution-type license
for the Peoples' Republic of China.
EIA recommendations were also adopted in other areas of the Act including
Telecom Trade, Foreign Investment, and the Harmonized System for Tariff Classifica-
Legislative
tion. The IBC also helped to defeat trade bill provisions on Customs Private Right
Affairs
of Action and Scofflaw.
Council
The IBC spoke out in the area of proposed sanctions against Toshsiba and
Kongsberg, successfully working with Congress and the Administration to ensure
that their negative impact on innocent companies would be limited.
At the IBC Spring Conference meeting, a record number of attendees heard
about prospects for the Trade Bill and U.S. Competitiveness from Congressman Don
Bonker, Chairman of the House Foreign Affairs Subcommittee on International Eco-
nomic Policy and Trade; Eugene McAllister, Assistant Secretary of State for Eco-
nomic and Business Affairs; and Dr. Harvey Bale, a leading industry representative
and former Assistant U.S. Trade Representative for Trade Policy.
In July, the IBC, together with the EIA Government Division Export-Import
committee, provided testimony on needed reforms in the State Department's Office of
Munitions Control, and urged review of the Arms Export Control Act, which that
Office administers. Export-Import Committee Chairman, David Danjczek, Litton In-
EIA
dustries, testified on behalf of the two groups before the House Foreign Affairs Sub-
committees on Arms Control, International Security and Science, and International
Government
Economic Policy and Trade. Foreign Affairs Committee Chairman Dante Fascell
agreed to EIA's request for further Congressional oversight in this area, and the State
Relations
Department has already begun to implement some of EIA's recommendations.
Department
Another priority for EIA members was the U.S.-Canada Free Trade Agreement.
The IBC's Trade Policy Committee took the lead in communicating EIA member
companies' concerns to both the Administration and Congress.
Both on its own and through the Industry Coalition on Technology Transfer,
EIA continued to provide the Administration with input on draft regulations for
both commercial and military export controls. EIA is represented at ICOTT by
members of the International Business Council, as well as Lisa Kjaer, IBC Executive
Director and ICOTT Vice Chairman.
At the EIA Fall Conference meeting in San Francisco, the IBC held an open
program for all EIA members to familiarize them with the impact of "EC 1992"
upon the U.S. electronics industry. Members were briefed by European Community
and U.S. government officials as well as representatives of the U.S. and European
private sectors on the likely impact of the establishment of a harmonized internal
market within the European Community. Panelists discussed the possible increase in
Government
barriers as well as opportunities for U.S. electronics manufacturers when the har-
Procurement
monized market becomes effective December 31, 1992.
Relations
Council
Human Resources Council
1988 was another year of continued success for the Human Resources Council in
representing the view of U.S. electronic manufacturers on both practitioner and
Human
legislative issues facing HR executives.
Resources
From the practitioner viewpoint, the HRC examined a number of important
Council
subjects facing member companies. The council was able to bring nationally-
recognized experts to each of the three HRC meetings in 1988 to speak on impor-
tant human resources issues. Among the issues examined were the impact of com-
puter integrated manufacturing on the HR function, issues involved in an aging
workforce, successful employee relations models and employee shared responsibility
programs. The HRC has expanded its reach within the industry and this year count-
Tax
ed a record number of new, first-time attendees to the HRC annual meeting in In-
Council
nisbrook, Florida.
On the legislative front, 1988 has demonstrated a continued improvement in
coordination between HRC and LAC Domestic Committee members with regard to
lobbying and grassroots legislative activities. Among the multi-industry coalitions in
29
which the HRC took a leadership role were the plant closing and parental leave is-
sue coalitions. HRC members determined that aggressive opposition to the mandat-
ed benefit issues brought up early in the year would delay consideration of many
other mandated benefit proposals. This successful tactic made the serious considera-
tion of several mandated benefits bills by Congress impossible.
In preparing for the 101st Congress, the HRC hosted a multi-industry meeting
in Washington to review both strategic and tactical options relating to the mandat-
ed benefits fight predicted for the next Congress. This meeting was also used to
help frame key procedural and structural questions relative to this effort. The HRC
will continue to work these important issues as well as examine ways in which to be
proactive on employee benefits issues.
The HRC has successfully positioned itself as the electronics forum for HR is-
sues and is recognized by both member companies and other associations from in-
side and outside the industry as being an effective voice for electronics concerns on
human resources questions.
Government
The second session of the 100th Congress ended with mixed results for govern-
Procurement Relations
ment contractors concerned about potential new reforms of the procurement system.
Although most major issues were resolved satisfactorily in the FY '89 Authorization
Council
and Appropriations measures, troublesome new requirements and penalties were
enacted in major fraud legislation and reforms of small disadvantaged business sub-
contracting programs. Both staunch supporters of Defense and its critics agreed at
year's end that further legislative changes to procurement policy must be expected
in 1989.
Perhaps the preeminent issue of concern to contractors in the 100th Congress
was that of contractor profitability and DoD profit policy. A bill providing for man-
datory profit reporting by government contractors was introduced and occupied
much industry effort in 1988. The bill sought to require corporate-wide data submis-
sion of some of the most business-sensitive information maintained by companies,
and give DoD and the General Accounting Office (GAO) access to the data. EIA
testified and lobbied strongly against the bill, and the issue was successfully resolved
via a requirement that DoD merely derive an appropriate methodology for profit
studies.
Congressman Don Bonker discusses likely
Congress also determined to continue to restrict the DoD practice of requiring
outcome of Congressional debate on the
use of fixed-price type contracts for research and development work. EIA argued
Omnibus Trade Bill at the IBC Spring
strongly that this practice forced too much up-front risk and unforeseen cost on in-
Meeting.
dustry suppliers, and therefore created an environment for major future cost overruns
and adverse impact on the use of the most advanced technology to meet DoD
needs. The legislation requires case-by-case determinations and waivers by the Under
Secretary of Defense for Acquisition prior to use of fixed price development con-
tracts.
A less positive outcome occurred with the enactment of an extremely punitive
bill, the Major Fraud Act of 1988. The act is redundant to legislation enacted in
1985 which thoroughly overhauled legal remedies for fraud; it creates major new
fines for corporations whose employees commit fraud, and lessens the standard of
knowledge/intent for proving that an individual has engaged in fraudulent activity.
The bill will serve to further criminalize a procurement process already suffering
from an environment in which even honest mistakes bring allegations of abuse.
EIA members also actively lobbied a bill providing permanent authorization of
the Office of Federal Procurement Policy (OFPP), and establishing major new re-
quirements for corporate ethics programs. The original procurement integrity section
of this bill would have created onerous new certification requirements for industry
Janet Mullen (C) director of Congressional
regarding any possible infraction which might have occurred in the course of a com-
Affairs for the Office of the President Elect,
discusses transition issues with LAC Vice
petition. The final form of the bill is somewhat more balanced in approach, but
Chairman John Snyder, Westinghouse, and
will be burdensome for contractors to implement.
LAC Chairman Laramie McNamara, TRW,
In the regulatory sphere, EIA has provided major support to DoD on its Con-
before addressing an LAC luncheon
tractor Risk Assessment Guide (CRAG) Program. This effort seeks to create objec-
meeting.
tive criteria characterizing effective contractor systems of cost management and
accounting. Contractors complying with CRAG may expect reduced audit/oversight
in these areas. DCAA flexibility in approving systems and actually reducing over-
sight remains a key concern.
Additional information on GPRC and LAC Defense Issues activities may be
found in the Government Division section of this report.
30
The Tax Council continues to show great progress since its reactivation in 1987.
Tax Council
During the past year, the Tax Council has increased its active membership and also
expanded its leadership through the appointment of a new Tax Council Vice Chair-
man, Mr. Richard T. Vogel of Northrop Corporation. This expanded leadership has
enabled the Tax Council to assist in the development of key positions of interest to
several of the EIA member companies.
To this end, the Tax Council has been active in the continued Congressional
debate over the completed contract method of accounting, the 150% cap on pen-
sion funding, the permanent extension of the R&D tax credit and the pending
Treasury Department study on depreciation class lives. Additionally, the Tax Council
has been active in several industry working groups, including the Ad Hoc Tax Elec-
tronics Group and the Council on Research and Technology (CORETECH).
The 1988 Tax Council spring meeting examined key regulatory issues for tax
practitioners and featured Treasury Department policy staff responsible for drafting
and implementing regulations on the 150% pension cap. Additionally, the Director
of the Treasury Department Office of Depreciation Analysis briefed Council mem-
bers on the progress of the model questionnaire for the depreciation class life study.
The spring meeting was capped by a top IRS official who outlined current trends in
electronics industry corporate audits and an in-depth legislative analysis by Congress-
man Hank Brown of the House Ways & Means Committee.
This program success was continued at the fall meeting of the Council. Of par-
ticular interest was a presentation on the alternative minimum tax and its impact
on EIA member companies. Additionally, the Tax Council held a first-ever joint
meeting with the EIA Human Resources Council. This session discussed the
King Culp, vice president and general
tremendous compliance problems associated with the new anti-discrimination provi-
counsel, Magnavox Company, testified on
sions of Section 89 of the Internal Revenue Code concerning employee health and
behalf of EIA before the Senate Judiciary
benefit programs.
Committee in hearings on the Major Fraud
Legislatively, 1988 was a year of great progress and achievement for the Tax
Act of 1988. Mr. Culp made a number of
Council. The Tax Council, in conjunction with EIA member companies, was suc-
recommendations toward significant
improvements to the Bill.
cessful in gaining temporary extensions of three critical provisions, including the
R&D credit, the Section 861 R&D allocation moratorium and the Section 127 em-
ployee education assistance provision. Finally, EIA had success in preventing the
complete repeal of the remaining portion of the completed contract method of ac-
counting.
The strong support of member companies in helping advance the progress of
the Tax Council in 1988 has positioned the association to be a major player in the
formation of tax policy in the next Congress. EIA looks forward to continuing to
work with its member companies in meeting this important challenge.
Now in its second year of operation, the LAC's Space Issues Committee has al-
LAC Space Issues
ready proven itself to be an industry leader. Through the highly successful
Committee
Homestead and Captiva conferences, the LAC Space Issues Committee again
provided its members with a unique opportunity to interface with key members of
Congress and their staff.
Monthly meetings offered Committee members an opportunity to engage in dia-
logue with Congressional staff, as well as Administration representatives from the
National Security Council, the Office of Management and Budget, and NASA.
Most notable of the LAC Space Issues Committees' activities has been a series
of five Congressional space issues symposia, which the committee co-sponsored with
the Congressional Space Caucus and the American Institute of Aeronautics and As-
tronautics. The symposia, featuring government and academic experts, covered long
range space policy objectives, the space station, space transportation, space science
and exploration, and space commerce, and were attended by members of Congress,
their staffs, the press and industry.
Action on
From trade issues to human resources policy changes, from concerns about in-
creased corporate taxes to shifting government emphases on utilization of outer
EIA Members' Behalf
space or policies affecting government contractors, the Government Relations
Department exists to serve the nation's electronic industries by developing and ad-
vocating positions on major issues. Any member company belonging to a group or
division of EIA may assign qualified representatives to participate in any or all
department activities and additional active participants are always welcome. All EIA
members are encouraged to join the Government Relations Dept. in identifying and
addressing the key public policy issues facing our industry today.
31
EIA Committees
T
he Association's unique committee structure provides forums for industry
executives to keep abreast of and constructively involved in the major is-
sues effecting the industry.
The Law Committee comprised of senior counsel from member
companies, meets during our spring (Washington, D.C.) and fall (California) confer-
ences, and constitutes the focal point for discussion of legal matters that affect elec-
tronic industries. The committee also provides advice and assistance to other parts
of the Association, including the Board of Governors. Its April meeting featured an
overview on the impact of environmental and safety issues upon the electronics in-
dustry. At its October meeting legal aspects of the 1988 Trade Act were reviewed
and discussed.
The Intellectual Property Committee provides an active forum for senior
"Providing forums for
intellectual property counsel to discuss and formulate Association positions on issues
concerning patents, copyrights, trademarks and the protection of proprietary data. It
industry executives to
meets several times per year, generally in Washington, D.C. Activities this year in-
cluded preparation and submission of comments on the Uniform Trade Secret Act,
keep abreast of and
the proposed GATT Agreement on Intellectual Property, the proposed Procure-
ment Roundtable Proprietary Right Policy, H.R. 4086 and the PTO proposed Rule
Sec. 57.
constructively involved
The Traffic and Physical Distribution Panel, since the arrival of freight
and shipping tariff deregulation, has expanded its interest to developments concern-
in the major issues
ing packaging, private and public carriage, air and ocean shipping, warehousing, and
compliance programs for export licensing. During the year it completed a poll of its
affecting the industry."
members to determine how active a program they wanted. Its present plan is to
schedule meetings in response to requests from members that one or more issues or
topics be discussed.
The National Credit Committee assists member companies in avoiding
credit problems by helping credit managers to do a better job. Administered for the
EIA by Dun & Bradstreet, the EIA Credit Committee meets at regular semi-
monthly meetings at convenient regional locations in New York, Illinois and
California. In addition, the national annual meeting is held during the month of
February to bring together credit decision makers from all over the country to assist
them with educational programs and also provide a communication network.
The EIA VHDL Model Standardization Committee, formed in May of
this year, has met three times with an average attendance of 40. Interest is growing
rapidly in VHSIC Hardware Description Language (VHDL). A recent VHDL Users
Group meeting had attendance of over 200 people, an increase of 40% from the
previous meeting.
At its October 19th meeting, the EIA Board of Governors was briefed concern-
ing a new DoD Directive requiring delivery of VHDL documentation and perform-
ance analysis by defense contractors. The requirement has broad implications in
both the Defense and commercial markets. The Board authorized the establishment
of an Ad Hoc Committee to be comprised of concerned industry members, possibly
with DoD participation, to determine the feasibility of an industry cooperative ef-
fort, to define and procure computer models to meet these requirements and if possi-
ble, to establish a prototype effort immediately. These requirements may expand into
commercial areas as Design Automation Techniques are applied throughout our
industry.
James E. Riley
Henry Adams
Allan B. Osborne
Thomas N. Hafner
Frank Perreault
EIA Senior Vice President
Thomson Consumer
AMP Inc.
Philips Consumer Electronics
Sprague Electric Company
Secretary and General Counsel
Electronics, Inc.
Chairman, Intellectual
Company
Chairman, National Credit
Chairman, Traffic & Physical
Property Committee
Chairman, Law Committee
Committee
Distribution Panel
32
Electronic
n 1988, EIA's Electronic Industries Foundation marked its fourteenth year of
I
public service on behalf of the electronic industries. The Foundation's mission
Industries
continues to be to engage the talent, capabilities, and leadership of the elec-
tronic industries in the resolution of issues of national concern.
Foundation
EIF is best described as an "operating" rather than a "grant making" foundation
in that it develops and implements its own programs and seeks funding through a
variety of sources to operate them. These sources include government contracts and
grants as well as private contributions.
The Foundation's 1988 budget totals approximately $2.5 million of which 96
percent is derived from competitive government contracts and grants. In addition,
many of EIF's area program operations receive supplemental support through local
government sources.
"Engaging the talent,
The involvement and contributions of EIA members are extremely important in
that nearly all government grants require that EIF provide 20 percent of the total
capabilities, and
program costs. The contribution of in-kind services and equipment by industry in
support of EIF programs is valued at over $1 million for the past year.
EIF is governed by a twenty-two member board of trustees which is basically
leadership of the
representative of the EIA membership.
The past year was characterized by steady growth in all aspects of EIF activities.
electronic industries in
This includes the addition of new projects, accomplishment of current goals, in-
creased financial and material support by industry, and expansion of affiliations with
other national, regional, and local organizations with which EIF shares common
the resolution of issues
interests.
Proposals for government project grants and contracts are based on the relation-
of national concern."
ship between the government's objectives and EIF capabilities and priorities. All EIF
projects depend on industry as advisors or for direct participation in such programs
as employment and training.
In addition to implementing EIF projects, professional staff members provide
technical advice and counsel to a wide variety of external government, academic,
and professional groups through service on boards, councils, and committees.
EIF's Project With Industry, now in its twelfth year, continues its exception-
al record in placing persons with disabilities into competitive employment. Over
1,000 persons were placed in the past year; more than 7,500 persons have been em-
ployed through EIF partners and affiliates since the project began. These persons
earn a cumulative annual income estimated at over $82.5 million. Currently, there
are more than 1,300 companies and 750 community rehabilitation agencies partici-
pating in EIF/PWI projects nationwide.
By working with many employers, PWI staff specialists match the capabilities of
persons with disabilities to appropriate job openings. The current average starting sa-
lary is nearly $13,000 annually, with a range for all jobs of $6,970 to $62,400.
A highlight of the 1988 PWI National Advisory Council meeting was a
presentation by Harold Russell, Chairman of the President's Committee on Employ-
ment of Persons with Disabilities. Mr. Russell, a double amputee as a result of a
World War II training accident, is well known for his Academy Award winning role
in the film "The Best Years of Our Lives".
At the Council meeting, Honeywell, Inc. was presented with the Industry Dis-
tinguished Service Award having been one of the initiators of PWI and having
Peter F. McCloskey
Chairman, Electronic Industries
hired 55 disabled candidates referred through the program nationally.
Foundation
The Rehabilitation Engineering Center has completed its initial five-year
cycle of studies and demonstrations designed to improve the range and quality of
products commercially available to aid persons with disabilities. Most significant
among the conclusions reached by the REC's studies is recognition that manufac-
turers stand ready to produce and distribute any product or system for which a finan-
cially based market exists, and that, along with stimulation of industry, the primary
need is improved flow of information to disabled consumers and better ways to
finance the purchase of high-cost assistive devices.
A new five-year award has been granted to the REC to study and demonstrate
innovative methods to stimulate the transfer of assistive technology from developers/
manufacturers to people with disabilities. New activities include conducting focus
group market studies that will assess the technology needs and personal characteris-
tics of the disability consumer market.
James T. Magee
The REC continues to work closely with EIA's new Assistive Devices Division
President, Electronic Industries
(ADD) which was established in 1987 within EIA's Industrial Electronics Group.
Foundation
33
The division evolved out of shared interests and goals of certain manufacturers and
the REC. ADD includes manufacturers of electronic and electronic related products
that compensate for functional limitations.
The Independence Through Employment project is operated in conjunc-
tion with PWI. Over 450 Social Security Disability beneficiaries, typically among
the most severely disabled individuals, have returned to work through ITE in the
past four years. This highly successful demonstration has been extended for two ad-
ditional years with new emphasis on strategies such as the use of low cost rehabilita-
tion engineering, and an incentive-based placement service.
A new project, Work Options Unlimited, was started in late 1988 as part of
the ITE effort. It extends the job placement service to severely disabled, poor per-
sons (Supplemental Security Income recipients). It will be piloted in the San
Pete McCloskey, Jim Magee, Harold Russell
Francisco Bay Area and will use "temporary employment" as a placement strategy
(Chair of the President's Committee on Em-
leading to permanent jobs.
ployment of People With Disabilities) and
In the area of Youth Programs, EIF has developed a protocol for installing
John Mitchell at the EIF PWI National Ad-
the EIA Consumer Electronics Group curriculum for electronic service technicians
visory Council Breakfast.
in schools with large numbers of minority and high risk youth. The curriculum was
successfully implemented by Washington, D.C.s Bell High School in 1986 and con-
tinues in use. It is currently being introduced in the Prince George's County,
Maryland, school district, and is being marketed to other sites as well.
The CEG has been a key partner with EIF and the schools by providing techni-
cal advice, supplying equipment, material, and texts, and through selection and
training of instructors.
The Special Projects area of EIF operations seeks to develop new programs,
assist existing projects with expansion efforts, and provide technical assistance to or-
Project With Industry
ganizations interested in adopting EIF programs for their own use. Over the past
Placements by Year
year more than a dozen new proposals were developed in response to EIF priorities
1977-1988
and government program announcements.
Through its Special Projects area EIF has assisted in the development of
YTD
TransCen, a community based organization in Montgomery County, Maryland, that
1988
is concerned with assuring the transition from school to work for students with disa-
bilities.
1987
The EIF Scholarship Program is a small, but increasingly important project.
It started with a single award only seven years ago; in 1988, four scholarships were
1986
provided through contributions from both companies and individuals. Awards go to
students who have a disability and who are pursuing technical careers. The schools
1985
attended by scholarship recipients include the George Washington University, the
University of Michigan, the Massachusetts Institute of Technology, and the
Rochester Institute of Technology.
1984
EIF recognizes that many such students face financial costs over and above the
basic tuition expenses. These costs include payment of attendant care, transporta-
1983
tion, and purchase of devices that enable them to attend classes, acquire knowledge,
and compete with nondisabled students.
1982
The Scholarship Fund was established through an initial gift from Mr. John H.
Dunlap. Subsequent scholarships have been made possible through support from the
1981
General Signal Corporation, the Consumer Electronics Group of the Electronic In-
dustries Association, and the Raytheon Company.
1980
Following a mandate established by the Board of Trustees, EIF will continue to
build on its successful experience in the areas of disability services, disability
research, and youth programs.
1979
A primary objective for the future will be to extend and adapt the Project With
Industry program methodology to serve populations traditionally considered among
1977/78
the most severely disabled and among the most difficult to place in jobs. These in-
clude persons who are both disabled and disadvantaged, developmentally disabled
0
200
400
600
800
1000
youth in transition from school to work, and Social Security Disability Insurance
Number of Placements
beneficiaries.
Over the past twelve years, 1345 companies
A second area of emphasis will target programs which focus on technology and
have hired more than 7400 persons with dis-
aging both as an approach to compensating for diminished physical capacity and as
abilities through the Foundation's national
a strategy for continued employment.
industry based Project With Industry Pro-
gram. More than 5 million dollars have been
Youth programs constitute the third priority area for future efforts. EIF will ex-
contributed by industry in manpower, facili-
pand on previous and current demonstrations which have successfully assisted high-
ties and dollars.
risk minority youth to become employable by providing technical assistance and spe-
cially developed curricula to high school vocational programs.
Finally, EIF will pursue increased support for its scholarship program.
34
1988 Spring Conference
ISSOCIATION
st
SOCIATION
EST.
Senator Donald Riegle (D-MI) discusses U.S.
President Reagan thanks EIA President Pete McCloskey after receiving special EIA
merchandise trade deficit at the Wednesday
Medal presented to him in recognition of his achievements on behalf of the high tech in-
luncheon session. Senator Riegle is chair-
dustries.
man of the Science/Technology & Space
Subcommittee of the Senate Budget
Committee.
Dr. Beryl Sprinkel, chairman of the President's Council of Economic Ad-
visers, discusses the state of the economy at the Tuesday luncheon session.
THE WHITE
May 1988
THE
Dear Pete:
pleased
to
drop
by
annual
the
of
senior
reiterate
and
FOR
largest
tax
future
ongoing
space
Defense Initiative.
Strategic
sincere
gratitude
for
the
"EIA
dish
Mitchell
presented
these
your
organiza-
friendship
With my kind regards and best wishes to you, John
Mitchell, and to your entire membership,
Sincerely,
The EIA Medal of Honor is awarded
Ronald Reagan congratulates EIA Medal of Honor
Ronald
annually to an individual who has
made outstanding contributions to the
winner Dr. Joseph A. Boyd.
advancement of the electronics industry
Electronic
Industries
Association
and attained high personal achievement
D.C. 20006
in the field of industry management.
35
1988 Fall Conference
ELECTRONIC INDUSTRIES
EIA
ASSOCIATION
Neil Upmeyer, director, Research for the
Gallup Organization, Inc., explains a pre-
election poll and analysis to the Association
EIA Board elects 1989 officers of the Association during their meeting at the Annual
membership.
Fall Conference held in San Francisco, California.
ALLECTR
S
INDUSTRIES ASSOCIATIONS
EST. 1924
LL CONFERENCE!
OCIATIC
ectronic
Two of EIA's most prestigious awards were presented by EIA Chairman John F.
dustries
Mitchell, (Motorola, Inc.) (far R) and EIA President Peter F. McCloskey (far L).
sociation
Hank Dorris holds Engineering Award of Excellence (R) and Phil Perchonok holds
Marketing Services Award of Excellence (L).
1924
SOCIATION
EIA 64th Fall Conference included more than 100
business meetings of the Association's Groups/Divi-
Congressman Robert T. Matsui (D-
Secretary of Labor Ann McLaughlin
sions/Departments and Councils as well as special
CA) represents the Dukakis/Bentson
representing the Bush/Quayle Cam-
luncheon meetings.
Campaign at EIA's Annual Fall
paign talks with EIA President Peter
Conference.
F. McCloskey before her presenta-
36
tion to the Association.
EIA Organization
Board of Governors
Treasurer
Executive Committee
President
Secretary and
General Counsel
Telecommunications
Consumer
Consumer
Industrial
Industry
Electronics
Electronics
Components
Government
Electronics
Group
Division
Association
Group
Shows
Group
Closed Circuit
Distributor
Fiber Optics
Audio
Television
Products
Division
Division
Manufacturers
Division
Mobile
Industrial
Electronic
Video
Communications
Automation
Division
Display and
Division
Division
Tube Division
Network
Home
Power
Microwave
Equipment
Information
Sources
Tube
Division
Equipment
Division
Division
User Premises
Assistive
Parts
Equipment
Engineering
Devices
Division
Division
Division
Solid State
Administration
Public
Products
and Finance
Affairs
Division
Marketing
Government
Services
Relations
Committees:
Panels:
Councils:
Credit
Government Technical
Government Procurement
Law
Requirements
Relations
Intellectual Property
Traffic and Physical
Human Resources
Distribution
International Business
Legislative Affairs
Tax
37
Board of
Governors
5
6
7
8
1
2
9
10
11
12
13
14
15
16
3
4
17
18
19
20
21
22
23
24
25
26
38
27
28
29
30
31
32
1. John F. Mitchell
26. Thomas N. Hafner
Chairman
N.A.P. Consumer Electronics
Motorala, Inc.
Corporation
2. William G. Little
27. Gene R. Hill
Vice Chairman
Grayhill, Inc.
Quam-Nichols Company, Inc.
28. John L. Hutson
3. Peter F. McCloskey
Sola Electric
EIA President
A Unit of General Signal
4. C. Travis Marshall
33
34
35
29. Donald F. Johnstone
EIA Treasurer
Philips Consumer Electronics Co.
Motorola, Inc.
30. Ernest L. Jones
5. Bruce Benefield
Stromberg-Carlson
EIA Assistant Treasurer
A GEC Plessey
TRW, Inc.
Telecommunications Co.
6. James E. Riley
31. Thomas W. Jones
EIA Senior Vice President, Secretary
Siliconix Inc.
& General Counsel
32. William C. Jones
7. Eaton Adams, Jr.
Switchcraft, Inc.
E-Systems, Inc.
33. Jerry Kalov
8. Ronald H. Barnhart
36
37
38
Dynascan Corporation
Honeywell Inc.
34. James R. Kaplan
9. Leigh S. Belden
Cornell Dubilier Electronics
Verilink Corporation
35. H.A. Ketchum
10. Roland M. Bixler*
Thomas Electronics, Inc.
J-B-T Instruments, Inc.
36. Carroll Killen
11. John E. Boyd
Tansitor Electronics, Inc.
AT&T
37. Martin J. Kiousis
12. Robert F. Burnett
M-Tron Industries, Inc.
3M Company
38. O.E. Lussier, Jr.
39
40
41
13. Thomas A. Campobasso*
Savoy Electronics, Inc.
Rockwell International Corp.
39. Alan G. Lutz
14. Bruce Carswell*
Northern Telecom Inc.
GTE Corporation
40. David E. Maguire
15. Walter A. Clements
Kemet Electronics Corporation
Littelfuse Inc.
41. John J. McDonald
16. Roger Cornett
Casio, Inc.
Cooper Industries-Belden Wire and
Cable
42. Harold A. McInnes
AMP Incorporated
17. Allen W. Dawson
Siecor Corporation
43. Charles E. McKittrick, Jr.
42
43
44
Governmental Programs
18. John P. Driscoll
IBM Corporation
Murata Erie North America, Inc.
44. Robert C. Miller
19. T. Kevin Dunnigan
NEC America, Inc.
Thomas & Betts Corporation
45. Francis J. Myers
20. Matthew J. Flanigan
Arvin Electronics
Cognitronics Corporation
46. Carroll Novicki
21. Joseph F. Fogliano
Dale Electronics, Inc.
Thomson Consumer Electronics, Inc.
47. Guy W. Numann
22. Stanley Friedman
Harris Corporation
ITT Defense Technology Corporation
45
46
47
48. Donald Palmquist
23. Robert W. Galvin*
Yamaha Electronics Corporation,
Motorola, Inc.
USA
24. Norman E. Garrity
49. Jack Pluckhan
Corning Glass Works
Quasar Company
25. Edwin A. Goldberg
50. Norman H. Pond
TRW Space and Defense Sector
Varian Associates, Inc.
48
49
50
*Honorary
39
Board of
Governors
(continued)
51. Ronald G. Rezel
Cutler-Hammer Products
Eaton Corporation
52. Lester Rice
KOA Speer Electronics, Inc.
51
53. John D. Rittenhouse
52
53
GE Aerospace
54. Glenn E. Ronk*
General Signal Corporation
55. Dr. John L. Sprague
Sprague Electric Company
56. Robert C. Sprague, Sr.*
Sprague Electric Company
57. Donald K. Thostenson
AVX Corporation
54
58. Sidney Topol*
55
56
Scientific-Atlanta, Inc.
59. Clifford H. Tuttle
RTE Aerovox Incorporated
60. Neil Vander Dussen
Sony Corporation of America
61. William J. Weisz*
Motorola, Inc.
62. Albert S. Wells, Jr.
Wells-Gardner Electronics Corporation
57
58
63. John D. Wolf
59
McDonnell Aircraft Corporation
64. Ralph Wolfe
Panasonic Company/Division of
Matsushita Electronic
Corporation of America
65. Albert F. Zettlemoyer
Unisys Corporation
*Honorary
60
61
62
63
64
65
40
Senior Staff
1. Peter F. McCloskey
President
2. James E. Riley
Senior Vice President
Secretary & General Counsel
3. Jean A. Caffiaux
1
2
3
Senior Vice President
Government Division
4. Herbert J. Rowe
Senior Vice President
Components Group
Industrial Electronics Group
5. Thomas P. Friel
Group Vice President
Consumer Electronics Group
6. Dennis Corcoran
Vice President
Consumer Electronics Show
4
5
6
7. Mark V. Rosenker
Vice President
Public Affairs
8. Gary J. Shapiro
Vice President
Government & Legal Affairs
Consumer Electronics
& Asst. EIA General Counsel
9. Elizabeth A. Hartnett
Staff Vice President
Administration & Finance Department
7
8
9
10. John M. Kinn
Staff Vice President
Engineering Department
11. Clinton S. Lee
Staff Vice President
Marketing Services Department
12. Kevin Richardson
Staff Vice President
Government Relations Department
13. Peter J. Walsh
Staff Vice President
Components Group
10
11
12
14. Don Hatton
Staff Vice President, Product Services
Consumer Electronics Group
15. Tom Lauterback
Staff Vice President
Communications,
Consumer Electronics Group
16. Eb Tingley
Staff Vice President, Engineering
Consumer Electronics Group
17. J. Hal Berge
13
14
15
Staff Vice President
Microwave Tube Division
16
17
41
Industry
Vice Presidents
1. Al Gold
Koyo International Inc. of America
Closed Circuit Television
Manufacturers' Association
2. Francis J. Myers
1
2
3
Arvin Electronics
A Division of Arvin Industries, Inc.
Consumer Electronics Group
3. Max D. Sanders
Ohmite Manufacturing Company
Distributor Products Division
4. H.A. Ketchum
Thomas Electronics, Inc.
Electronic Display and Tube Division
5. James T. Smith
The Magnavox Government and
Industrial Electronics Company
4
5
6
Government Division
6. Clifford H. Tuttle
RTE Aerovox Incorporated
Parts Division
7. Dr. John L. Sprague
Sprague Electric Company
Solid State Products Division
7
42