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Toys-R-Us--[Japan] 1/7/92 [OA 7565] [2]
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Toys-R-Us--[Japan] 1/7/92 [OA 7565] [2]
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Originally Processed With FOIA(s):
FOIA Number:
S; 1999-0582-F; 1999-0586-F; 2004-2265-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:
13790
Folder ID Number:
13790-007
Folder Title:
Toys-R-Us--[Japan] 1/7/92 [OA 7565] [2]
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26
22
2
1
THE WHITE HOUSE
WASHINGTON
Beth
Tony-
FYI This
might help
for Toys. R. us
stop in
Imaring. bus ings.
Maybe our
Thank Siz
-
Preservation
BUSINESS
Selling toys to Tokyo's tots
When it comes to the Japanese market, Toys 'R' Us isn't playing around
T
he presents are not piling up as
With McDonald's Japan as its local
probably needn't fret about other U.S.
high as usual under Christmas
partner and 20 percent share owner,
stores rushing in. That's because few
trees in economically troubled
Toys "R" Us soon entered into negotia-
American retailers have the financial
America, but across the Pacific, Toys
tions with several communities.
resources to mount a similar operation
"R" Us has something to be jolly
Gaining a toehold was hardly kid's
in a nation where a square meter of
about. After three years of tortuous ne-
stuff, however. The firm spent thou-
prime real estate can cost $6,000. There
gotiations, the world's top purveyor of
sands of hours in meetings with local
are many other barriers to entry. such
toys opens its inaugural outlet 40 miles
officials and residents. And it can now
as the exclusive relationships among re-
outside Tokyo this week-
TORIN BOYD FOR USN&WR
the first foray into Japan
by a large U.S. discounter.
Toys "R" Us is expand-
ing overseas faster than a
toddler tearing through
the house on a Big Wheel.
The New Jersey-based
children's specialty chain
has not just set its sights
on the $6 billion Japanese
toy market. In addition to
its 451 outlets in the Unit-
ed States, the company
now boasts 98 toy stores
around the world, and its
foreign base is expected to
double over the next three
years. As a result, interna-
tional sales will reach
about $1 billion this year
and could nearly quadru-
ple to $3.7 billion by 1996.
In the course of its ex-
Setting up shop. Workers in Japan prepare for the grand opening of Toys "R" Us this week.
pansion, Toys "R" Us has
often encountered resistance from fear-
look forward to similar marathons for
tailers, wholesalers and manufacturers,
ful local merchants overseas. But the
each of the 99 other outlets it plans to
which tend to shut out all newcomers.
process has been especially arduous in
open in Japan over the next decade.
Critics charge that such cartel-like ar-
Japan. For decades, Tokyo shielded
Toys "R" Us Japan is also having trou-
rangements are the private-secto-
small merchants from competition. Un-
ble securing direct suppliers and low-
equivalent of high tariffs.
der the notorious Large-Scale Retail
cost contracts from toy makers. Com-
But U.S. exporters may indirect
Store Law, local shop owners could stall
puter-game supplier Nintendo says it
benefit from the changes sweeping !
incursions by large retailers for 10 years
will only offer prices "acceptable to oth-
pan's retail industry. More than
or more. That's one rea-
USN&WR
er Japanese wholesalers."
large shopping centers are scheduled
son why Japan's 1.6 mil-
Global fun and gains
But Toys "R" Us's ef-
open in Japan this year, and the nu)
lion mom and pop shops
Toys "R" Ushas boosted its
forts should soon pay off.
ber of malls is expected to double
account for more than
bottom line by aggressively
Each outlet is expected to
3,000 by the end of the decade. As
half of all retail sales,
expanding overseas
register sales of at least $15
result, big Japanese merchants will be
compared with just three
million during the first
stepping up overseas purchases.
percent in America.
TOYS "R" US FOREIGN
year. It's easy to see why.
Despite this potential business, Wash-
Quick move. Under pres-
SALES AS PERCENTAGE
OF TOTAL SALES
Compared with the typical
ington will continue to push Tokyo for
sure from Washington,
small Japanese shop, which
additional trade concessions. While the
Tokyo shortened the
stocks about 2,000 items,
haggling continues, however, Toys "R"
large-store application
the U.S. toy retailer will of-
Us will be ringing up big sales in Japan.
process to no more than
fer. 8,000 different prod-
And that will bring the American retail-
18 months in 1990. And
2
ucts, ranging from made-
one of the first retailers to
0
er - as well as many Japanese children
86
87
88
89
90
91
(est)
in-U.S.A. Huffy bikes to
extra cheer this holiday season.
take advantage of the
Mattel's Barbie dolls.
change was Toys "R" Us.
Japan's small merchants
BY JIM IMPOCO IN TOKYO
54
U.S.NEWS & WORLD REPORT. DECEMBER 23, 1991
INT'L EXEC/OPERS
TEL : 201-262-8343
Dec 12,91 16:31 No. 010 P.01
I
VA EDSEL AND BILL DEMOCRAT ON THE ECONOMY SIRAILUIES TOYS 'R' US TRIBULK
DECEMBER 9, 1991
A McGRAW-HILL PUBLICATION
$2.50
THE BAD BOY
OF SILICON VALLEY
THE OFFBEAT
Post-It™ brand fax transmittal memo 7671
# of pages
3
To JEANNIE BUNTON
From
LWDA HAGELE 4440
MANAGEMENT
Co.
WHITE HOUSE
Co.
TOYS "Я" US
IDEAS OF CYPRESS
Dept. RESEARCH
Phone #
(201)599-8781
Fax #
(202)456-6218
Fax #
(201)262-8343
SEMICONDUCTOR'S
T.J. RODGERS
07652
CN PARAMUS
RD FROM 191
ONI SN Rx 101
I LARRY
APR92 D12 2453
203200027 0090
07652
743678' 9 III AIR
INT'L EXEC/OPERS
TEL: 201-262-8343
Dec 12,91 16:31 No. 010 P.02
Marketing
market that moved Toys 'R' Us to
launch the effort in the first place. An-
ticipating the day when it would satu-
rate its domestic market, America's larg-
est toy retailer went international in
1984, first in Canada, then Europe, Hong
Kong, and Singapore. Japan was always
tempting, but the country's notorious
Large-Store Law, aimed at protecting
the country's politically powerful small
shopkeepers, seemed an unbreachable
barrier. Under the law, local communi-
ties and the Ministry of International
Trade & Industry often managed to stall
incursions by big retailers, such as Japa-
nese supermarket operator Dajei Inc.,
for 10 years or more.
But by late 1988, recalls Toys 'R' Us
Vice-Chairman Robert C. Nakasone,
"there were rumblings MITI was think-
ing about a major change." Pressure
was mounting from the U.S., big Japa-
Dese retailers, and consumers looking
for the lower prices mass merchants
INTERNATIONAL INVERONE ONLY BOUTS MAY BEAP $1.5 BELLION - MAPANESE SALES ET 2000
could offer. Toys 'R' Us immediately be-
gan looking for a local partner to guide
it through the ordeal it faced. In early
1989, Bouts's predecessor met Den Fu-
jita, president of McDonald's Co. (Ja-
GUESS WHO'S SELLING BARBIES
pan). "He was our kind of guy," says
the S.-born Nakasone. "He was bicul-
IN JAPAN NOW?
tural, and he had quickly grown a retail
business in Japan. He really understood
the impatience of a company like ours."
It wasn't easy, but Toys 'R' Us finally cracked this tough market
BIG MAC ABOARD, Fujita also liked what
he saw. Since McDonald's serves a simi-
umping out of his car in an empty
lar clientele-families with small kids-
Small wonder Japanese toymakers
parking lot 40 miles north of Tokyo,
and retailers are edgy. Toys 'R' Us Ja-
he figured it could profit from building
Larry R. Bouts stands back and ad-
pan Ltd. hopes to be opening 10 stores
restaurants on the same sites as Toys
mires the white, spanking-new building
per year from 1993 through the end of
'R' Us. And after 20 years of building
sprawling before him. "Can you believe
the decade. Each is expected to generate
McDonald's into Japan's largest fast-
this?" he exclaims. "Pretty amazing!"
food operator, with $1.3 billion in sales,
White buildings and empty parking
sales of at least $15 million its first year.
That foretells minimum annual sales of
Fujita had acquired an encyclopedic
lots normally have little power to amaze.
knowledge of Japanese real estate. "If
But Bouts is right to exult over this
$1.5 billion by the year 2000, roughly
half of which would be from toys made
you name a city, I can see the post of-
particular patch of real estate. Bouts, 42,
outside Japan. Toys 'R' Us, with global
fice, train station, everything," boasts
is president of the international division
Fujita, who estimates Japan has at least
of Toys 'R' Us Inc., and this is his first
revenue of $6.4 billion, can bring a lot of
100 sites suitable for a Toys 'R' Us. Mc-
look at the company's inaugural store in
firepower to bear. The typical small Jap-
Donald's Japan quickly agreed to take a
Japan-and the very first large U.S.-
anese toy store stocks between 1,000 and
owned discount store there.
2,000 different items, while Toys 'R' Us
20% stake in Toys 'R' Us Japan.
will start out with about
In the spring of 1989, MITI unveiled its
SLOBBING. When Bouts's new Ibaraki
8,000 items, rising to
TOYS TAKING
new retail industry "vi-
Prefecture store opens on Dec. 20, it will
15,000 over time. If it
THE WORLD BY STORM
sion," which included
culminate three years of heavy slogging
can offer toys for 10% to
eventual relaxation of
SHARE OF TOY REVENUE FROM
15% less than competi-
INTERNATIONAL SALES
the Large-Store Law.
PHON GRAPH BY IORN BOYD Br AMERIC MENA/BW
through the swamps of Japanese bu-
reaucracy, local vested interests, labyrin-
25
tors, as it does else.
And the U.S. began pro-
thine real estate practices, and heavy,
where and as Bouts says
posing its Structural Im-
20
often hostile, Japanese press coverage.
is possible. Tovs 'R' Us
pediments Initiative.
And it will be the most visible payoff to
will have a huge impact
15
aimed in part at crack-
date of the two-year-old, S.-inspired
on Japanese toy retail-
ing open Japanese mar-
Structural Impediments Initiative aimed
10
ing. With more than $6
kets. Nakasone, Bouts,
at prying open new markets for Ameri-
billion in annual sales,
5
and Fujita began lobby-
can companies in Japan. "We hope Toys
Japan is the world's
ing their respective gov.
'R' Us will be the first in a long line of
No. 2 toy market after
0
ernments for help. Bouts
stores to locate in Japan," says Com-
Y2
the U.S.
PERCENT
and other Toys 'R' Us
BT
merce Secretary Robert A. Mosbacher.
It was the size of that
executives met directly
DATA: COMPANY REPORTS, SANFORD C BERISTER & CO.
with U.S. Trade Repre-
72 BUSINESS WEEK/DFCEMBER 9 1991
MARKETING
INT'L EXEC/OPERS
TEL: 201-262-8343
Dec 12,91 16:31 No. 010 P.03
Toys 'R' Us signs jump out at passers-
Dy, Bouts says the store will get only
sentative Carla A. Hills and her deputy,
minimal customization-some Japanese-
Linn Williams. Bouts says Hills's back-
language signs inside and perhaps a sec-
mg was critical. Back in Tokyo, Fujita
tion for items especially popular with
made the rounds of his government con-
Japanese. Although he's aiming for dis-
taets. many of them former classmates
counts of up to 15%, he's not making
and fellow alumni of the University of
any promises. "You won't see deep dis-
Tokyo's elite law department.
counts." he says. "Real estate and distri-
By April, 1990. MITI had agreed to
bution costs are high here."
shorten the big-store application pro.
The early stores will feature a mix of
cess to no more than 18 months. "That
roughly two-thirds Japancse toys and
was a major, major breakthrough," says
one-third imports. including Huffy bikes,
Nakasone. He and Bouts already had
Mattel's Barbie dolls. and Tonka trucks.
handshake agreements with various
But Bouts says imports' share will grad-
landlords. Within weeks, the company
ually rise to as much as half. Meanwhile,
had submitted building applications for
local opposition seems to have subsided.
several locations.
"An integrated store for children is a
COOL RECEPTION. But the work had just
good thing," says Katsuyuki Fujii,
started. Since then, Toys 'R' Us has
whose small Toy's House Joy sits just a
been slowly negotiating the local barri-
half-mile down the road from the first
ers still in place after the Large-Store
Toys 'R' Us store. "My wife can't wait
Law's amendment. Take the fairly typi-
to go shopping there for our kids." Fujii
cal case of Sagamihara, a Tokyo suburb
says he'll survive by finding a profitable
of 520,000. In May, 1990, Toys 'R' Us
niche-which he won't specify.
started talks on opening a store there.
HUE AND CRY. Nobody at Toys 'R' Us is
The welcome was hardly a warm one.
predicting clear sailing, though. Last
"The site Toys 'R' Us had chosen didn't
year. for example, frightened toy shop
fit our plans [for development)," says
owners in the city of Niigata generated
Goro Kakishima, senior managing direc-
international headlines by clamoring
against the application of Toys 'R' Us to
build a store there. They succeeded in
delaying the opening until 1993.
'You won't see deep
Toys 'R' Us still faces obstacles in
discounts,' says Bouts.
Japan. It's having a hard time winning
low-cost, direct-supply contracts from 10-
'Real estate and distribution
cal toymakers, who don't want to upset
costs are high here'
powerful wholesalers and longtime cus-
tomers. Such arrangements are key to
the ability of Toys 'R' Us to discount.
Only one major Japanese toymaker, Nin-
tor of Sagamihara's Chamber of Com-
tendo Co., has publicly stated it will sell
merce & Industry. "But we couldn't le-
directly to Toys 'R' Us Japan. And small
gally prevent it" So in July, conforming
retailers such as Fujii say they expect
to MITI-prescribed procedures, Toys 'R'
lower prices from wholesalers, and pos-
Us submitted applications to the minis-
sibly financial support. if the heat from
try, Kanagawa Prefecture, Sagamihara
Toys 'R' Us gets to be too much.
City, and the Chamber of Commerce.
Despite their anxiety over Toys 'R'
In August, Toys 'R' Us had to join in
Us, Japanese retailers probably don't
an "explanation meeting" at the local
have to worry about an onslaught of
public hall. Next came presentations to
giant U.S. retailers. True, smaller spe-
Sagamihara's Commercial Activities
cialty stores such as Computeriand and
Council, a MITI-inspired body of 18 con-
Brooks Brothers Inc. are already in Ja-
sumers, merchants, professionals, and
pan. But their operations are a far cry
academics. After four meetings, the
from those of a "superstore" operator
council gave the green light in June.
intent on commanding a market. As ana-
1991. Toys 'R' Us could open its store
lyst Richard Baum of researcher San-
after Dec. 1. But like many other stores,
ford C. Bernstein Inc. puts it: "Only a
it had to close every day by 8 p.m. and
handful of big retailers have the kind of
shutter itself 30 days a year, In addition.
format. supplier relationships, and ex-
Toys 'R' Us had to consult with other
pertise that let them succeed globally."
bodies over possible traffic problems. By
So. the intricate Japanese system of re-
September, those consultations and con-
tailing may, by and large. remain undis-
struction delays forced a postponement
turbed by U.S. companies. That larger
of the Sagamihara opening until March,
issue isn't the giant toy retailer's prob-
1992. Determined to open one store this
lem. though. Toys 'R' Us is just intent
year. Toys 'R' Us turned to Ibaraki.
on expanding its tenuous foothold in the
At Ibaraki, the store and 850-car park-
world's toughest retail market.
ing lot are massive by Japanese stan-
Ru Robert Neff in Tokyo. with bureau
dards. The colorful. English-language
reports
76 BUSINESS WEEK/DECEMBER o 1991
droft
December 23, 1991
MEMORANDUM FOR THE PRESIDENT
THROUGH:
DAVE DEMAREST
TONY SNOW
FROM:
BETH HINCHLIFFE
SUBJECT:
PROPOSED REMARKS FOR RIBBON-CUTTING CEREMONY AT
TOYS-R-US, NARA, JAPAN
I. SUMMARY
On Tuesday, January 7, 1992 at 3:40 p.m. you will brief
remarks to an audience of 200 members of the Kansai region
American business community at the ribbon cutting ceremony for
Toys-R-Us in Nara, Japan.
II. DISCUSSION
Your remarks (approximately 8 minutes / cards) focus on the
success of the Structural Impediments Initiative, and recognize
the arrival of Toys-R-Us in Japan as a victory in eliminating
distribution barriers.
Your remarks challenge the government of Japan to continue
opening markets and remove barriers to trade.
(Hinchliffe/Bunton)
December 11, 1991 11 a.m.
TOYS
Draft One
PRESIDENTIAL REMARKS: TOYS-R-US
TUESDAY, JANUARY 7, 1992
KYOTO, JAPAN
Thank you. I must tell you that our grandchildren didn't
think this trip sounded like too much fun until they heard we
were stopping at Toys-"R"-Us. I'll just have to tell them I
couldn't buy them anything because Barbara's cut my
kozu kai.
allowance
I was going to talk today about America's largest national
exports to Japan -- but enough about Konishiki and Ake Bono.
11
their wiver
It's really a privilege to be here, because this store is
not only an impressive sight -- it's also an impressive symbol.
The arrival of Toys-"R"-Us in Japan shows the success of sheer
public-private determination. This is the victory in the battle
to eliminate a major barrier in the Japanese distribution system.
For years American retailers had recognized that Japan would
be a prime market. After all, it has the second biggest economy
in the world, and its consumers increasingly are demanding wider
choices and lower prices without compromise in quality.
But American companies couldn't make any headway in opening
here. Complex regulations, particularly the "Large Store Law",
essentially made opening new foreign retail stores impossible.
From the beginning of this administration we had a key trade
policy objective: to break down Japan's barriers to the sales of
US goods and services. So we launched the Structural Impediments
Initiative, taking dead aim at rules preventing our companies
from competing in Japanese markets.
2
It was a great step for trade and our economies when our
nations agreed on SII. At last a new, more level playing field
could start to emerge. When it agreed to liberalize its
distribution system, Japan lowered the key barrier. Finally, we
cracked open Japanese markets for American companies.
Both Japanese consumers and American workers will benefit.
Here, people will have stores with wider selections, competitive
prices, and quality goods from across the world. At home, the
overseas sales of US-made products will boost the economy.
We're here today because as soon as SII was introduced,
Toys-"R"-Us was there, eager to take full advantage of the
opportunity. It lived up to that old Japanese saying: "The
lantern-bearer should go ahead. "
This lantern-bearer is a great example of an aggressive,
innovative American company. It stands ready and willing to risk
its own capital in order to bring new distribution ideas to major
world markets -- and has already committed over $100 million to
open 20 stores during the first phase of its Japanese operation.
We have plenty to learn from the three years of tough battle
Toys-"R"-Us has had to wage to pry open the $6 billion Japanese
toy market; and the obstacles they still face daily. After all,
this is the first time a large US discount store has opened here.
I hope Toys-"R"-Us is only the first in a long line of US,
retailers to locate in Japan -- becoming magnets, drawing US
products overseas. This is an exciting idea because opening US
stores here creates economic growth for America -- the Japanese
3
FACT/COMEN
expansion of Toys-"R"-Us alone will mean new jobs for 40,000
American workers by the end of this decade. Opening US stores
here also allows manufacturers, particularly small ones, with a
conduit into markets they otherwise could not have touched. And
opening US stores here brings to the Japanese consumer a choice
of world-class goods -- here, for instance, Toys-"R"-Us will
U.S.News}
offer 8,000 different products, 1/3 of them imports. Business Wink
workport
SII has produced important results for the people of both
our lands. We've learned how government can change the rules of
trade and investment to promote competition, benefitting workers
and consumers. We've come to better understand both nations'
economies -- and both nations' people. After all, we have much
to learn from each other -- the Japanese essence of "gamman".
The union between the United States and Japan is the single
most important bilateral economic relationship in the world. Our
actions, separately and together, affect many other nations.
We've worked closely together in the spirit of cooperation -- for
instance, at the Economic Summit, and within the G-7 framework.
But there are still issues to be resolved. Each partner
must realize that it benefits from free trade and open markets -
- our economic relationship is not a zero-sum game for either
side. Each player must realize the US is a Pacific power, with
vital economic and political interests in this region. And each
player must be vigilant about SII. We know it's an important way
to head off protectionism. So we must be vigilant -- constantly
re-energizing it by introducing new commitments on both sides.
4
And in the US, although we're pleased at the success so far,
we're not satisfied with only reaching trade agreements. We're
equally concerned that implementation of those agreements
produces a permanent improvement in access to Japanese markets.
We will closely monitor the implementation of trade agreements.
Prime Minister Miyazawa has referred to Japan's goal of
becoming a "lifestyle" superpower. I believe that the arrival of
Toys-"R"-Us not only heralds a new age -- but that it also will
help the Prime Minister to achieve that goal. It is a forward-
looking merger of two great nations, two powerful economies, and
two resourceful and innovative peoples. Together, we will go
far. God bless our lands, and the dreams we share.
#
#
#
leaders and Country Shutch
quality of lik
in
of living
(Hinchliffe/Nix)
December 3, 1991 1 p.m
DEERE Draft One
PRESIDENTIAL REMARKS: JOHN DEERE COMPANY
December 10, 1991
Moline, Illinois
Thank you. [ACKNOWLEDGEMENTS] It's great to be here with
all you Quad Citians. But most of all, it's great to see the
people behind the power of John Deere. I half-expected to be
driven in on one of your products -- then we could have named it
"Tractor One."
I'll be brief today, because I didn't come here to make
speeches. I came to look, to listen and to learn.
And I'm proud at what you've shown me -- a successful
American company (more on Deere -- branching out into financial
and insurance services, too -- over 37,000 employees worldwide).
I see how you've done it. You've succeeded because of your
commitment to quality -- to world-class performance. You've
succeeded because of your priority of training and educational
excellence. You've succeeded because of your (special project -
- drug-free workplace?) You've succeeded because of your
employees, who show that quality people mean quality products --
men and women like X
(Gulf War participants -number of
longterm --)
And, if I may add, you've succeeded because of a CEO like my
friend Hans, here. (Quote or anecdote from CEO)
It's success like yours here at John Deere that helps
American firms muscle their way into world markets -- with skill
and drive. That's a victory, because cracking foreign markets
2
creates more American economic growth and more American jobs.
(can add more here, Peavy p. 5)
In this new global marketplace, America has built a solid
foundation. Inflation is down. Interest rates have fallen to
the lowest level in years. American exports have skyrocketed 80
percent in the last five years alone.
But that doesn't mean we don't face problems. We do. Tough
ones, and I know it. As President, I've traveled to 48 states.
I've met with all sorts of people -- men and women and kids who
are the real heart of America. I've talked with them. I've
listened to them. Most of all, I've learned from them.
I want to say something to everyone of them -- to every one
of you. I hear you. I understand. I care. I want to help. I
know that for a person out of a job, the unemployment rate is 100
percent. (letter)
I will continue to fight to create opportunities in foreign
markets for American workers. I will make sure that our agencies
do everything they can to help people, from getting unemployment
checks out to easing the credit crunch. And I will insist that
we get immediately the money our great new transportation bill
provides. Then we can get going -- building roads, fixing
bridges and -- most importantly -- creating jobs.
We've got more to do to get this economy moving the way we
want it to -- the way we know it will. I ask Congress to pass an
important series of initiatives: proposals to put more Americans
back to work. I ask Congress to approve this package containing:
3
tax incentives to unleash investment; reforms to help our banks
do their job; ideas to strengthen our educational system; and
initiatives to keep health care costs down. Together, these
measures will help our economy grow -- will create jobs -- and
will help every American reach for his or her dream.
I've appreciated the chance to see what you're doing -- and
to hear what you're feeling. I'm proud of your hard work and
your dedication. You know, every time I talk with Americans, I
see our strength and I feel all the more determined to do what
you elected me to do -- foster growth; keep the peace; and
maintain our stature as the world's greatest nation -- the
standard by which all other countries measure themselves.
Thank you for welcoming me today with the warmth you surely
showed my predecessors -- Abe Lincoln when he was here fighting
for the railroad bridge; and Ronald Reagan, announcer on WOC, the
first station west of the Mississippi. Thank you for letting me
share some time here in the Quad Cities -- a place with "pride in
its past, purpose in its present, and hope in its future." Here
we can feel the truth of what FDR said a half-century ago: "The
only limit to our realization of tomorrow will be our doubts of
today. " We must -- we will -- dispel our doubts and believe once
again in tomorrow. God bless you all.
1-Pre-SII
2-SII negat
taby adv. commitment
3-TRU Beneful of SII
(Hinchliffe/Simon)
December 11, 1991
11
a.m.
TOYS
Draft One
5-Comlin
trade
PRESIDENTIAL REMARKS: TOYS-R-US
TUESDAY, JANUARY 7, 1992
KYOTO, JAPAN
3a-TRU
Barbara and I thank you for your welcome (Japanese anecdote
or joke). I must tell you that our grandchildren didn't think
this trip sounded like too much fun until they heard we were
stopping at Toys-"R"-Us. I'll just have to tell them I couldn't
buy them any toys because Barbara's cut my kozu kai.
It's really a privilege for us to be here, because this
store is not only a tremendously impressive sight -- but it's
also a tremendously impressive symbol.
A
pre SII
For years American companies retailem had recognized that Japan would
be a prime market. After all, it has the second biggest economy
in the world, and its consumers increasingly are demanding wider
choices and lower prices without compromise in quality.
D But companies could make no headway in opening here. The
regulations -- particularly the "
"
were complex and
essentially made opening new foreign retail stores all but
impossible. --SII negotiations Japen um received can has insured. the Large Store how
Well, from the beginning of this administration we had a key
trade policy objective -- to break down barriers in Japan's
Structured
market to the sales of US goods and services. And so we launched
Archup
the Structural Impediments Intiative, aimed at clearing away the
structural features of our economies which obstruct trade and
investment.
2
We had three goals for SII. First, to promote the
elimination of barriers in Japan's distribution system. Second,
to put a brake on exclusionary business practices. And third, to
attack other policies and practicies holding back American
companies seeking to enter the Japanese market.
It was a great step for trade and our economies when our
nations agreed on SII C Japan lowered the key barrier blocking
we werefines
access to its market, agreeing to liberalize its distribution
system. Japanese consumers and American workers benefit. Here,
people will have stores with wider selections, competitive
crain open
prices, and quality goods from across the world. At home, the
congin
overseas sales of US-made toys will generate new jobs.
We're here today because as soon as SII was introduced,
Toys-"R"-Us was there, eager to take full advantage of the
opportunity. This is a great example of an aggressive,
ara
innovative American company. It stands ready and willing to risk
its own capital in order to bring new distribution ideas to major
world markets -- and has already committed over $100 million to
3
opening 20 stores during the first phase of its Japanese
operation. It's on the very frontline of innovative US
companies, and sets the right example for others to follow.
"many barriers are private-section equivalent of high tariffs"
need additional trade concessions
--cracking foreign markets creates more American economic growth
and more American jobs
JBMEMEMO
--Osaka area is important business environment
nature
emphasis on distribution of American goods
success of structured import initiative
--pep talk to Am. business -- distribution networks
first large US discount store
3 Cant
hope ?TYR first in long line of us stores to locate in Japan
work of Carla Hills US Trade Rep
BUSINESS WEEK:
--"most visible payoff of the SII aimed at prying open new mrkets
for American companies in Japan."
3a --slowly negotiating local barriers still in place after Large-
Store Law's amendment
--1/3 of toys will be imports (Huffy, Barbie, Tonka)
3a still faces obstacles in Japan
--world's toughest retail market
11/22 letter:
A
--TRU arrival in Japan symbolizes our determination to eliminate
a major trade barrier in the Japanese distribution system.
SII negotiations took dead aim at entrenched structural
B
barriers preventing Am. companies from competing in Japanese
markets
C
-new, more level playing field now emerging in Japan
--pave way for increased sales by US toy manufacturers -- TRU
presence in japan allow them toa ggressively export in this very
difficult market -- means new jobs in America -- 40,000 by end of
decade just by TRU expansion overseas
D
--Am. retailers are most innovative and advanced in the world --
workers produce world-class products
HASBRO:
-strong message underlining importance of US exports to Japan -
3
-this is great expample of American entrepreneurship seeking to
late
break down barriers in foreign markets
HUFFY:
--importance to balance of trade of opening Japan to US exports
B
--stores showcase availablility of US products -- symbol of
initiatl breaking down of Japanese trade barriers
TREASURY
--US/Japan single more important bilateral economic relationship
in the orld -- witht he world's two lrgest economies, tehir
actions impact many other nationas. Have cooperated closely, for
instane in Economic Summit and G-7 framework, but a number of
contentious economic issues plague the relationship --
(Hinchliffe/Simon)
December 11, 1991 11 a.m.
TOYS
Draft One
PRESIDENTIAL REMARKS: TOYS-R-US
TUESDAY, JANUARY 7, 1992
KYOTO, JAPAN
--brief remarks (2 pages)
--Sec. Mosbacher
--general: Kyoto
both US and Japan benefit from free trade and open markets --
our economic relationship is not a zero-sum game for either
partner
the US is a Pacific power, with vital economic, as well as
political, interests in the region
-Japan is important market for US exports and a source of US job
creation; Japan #2 market for US exports -- US is Japan's #1
--more than 1/3 of our total trade is with Asia
-US-Japan relationship helps reinforce global cooperation for
benefit of citizen of all nations
--US-Japan single morst important bilateral econonmic
relationship in the world
--global neighborhood
-interdependence in communication/technology new world
the opportunities and responsibilities of interdependence
4
have much to learn from each other -- "gamman"
--global neighborhood
-largest exports Konishiki and Ake Bono
--I wanted to buy some souvenirs, but Barbara cut my kozu kai.
--have much to learn from each other -- "gamman"
--"the lantern-bearer should go ahead" -- everyone point of
light, nationally and internationallly
--"I do the very best I know how -- the very best I can; and I
mean to keep on doing so until the end. " -- Abraham Lincoln
--"Destiny is not a matter of chance; it is a matter of choice.
It is not something to be waited for; but, rther something to be
achieved. " -- William Jennings Bryan
USNEWS:
--after three years of tortuous negoations, world's top purveyor
of toys opens --
3a
-first foray winot Japqn by large US Discounter
= $6b Japanese toy market
-arduous process
2a
for decades, shielded small merchants from competition
--under pressure from DC, Tokyo shortened large-store application
2a
process to no more than 18 months, one of first to tke advantage
TRU
2a --8,000 difff. products
4
--SII -- an important inititaive to reduce impediments t
competition and adjustment of external imbalances -- SII success
can help to head off protectionism. For example, US has urged
Japan to: increase public infrastructure inveemsnt to improve
economic well being; reduce monopolistic effects of keiretsu
business practices; and open up distribution ystem to imports.
Essential we re-energize the SII process by introducing new
commitments on both sides.
Other companies should follow the example of Toys-"R"-Us,
and become magnets drawing US products into foreign markets.
First of all, this allows manufacturers, particularly small ones,
W
with a conduit into markets they otherwise could not have
touched. Secondly, this creates new jobs and profits in America.
SII has produced important results for the people of both
our lands. We have come to understand each others economies --
and each other -- better. We have learned how government can
help change the rules of trade and kinvestment to promote
competition, benefitting workers and consumers alike. Japan is
changing -- and there is opportunity here for our firms and for
our workers. I hope other US companies will follow the lead of
TRU and learn about the exciting opportunity this market offers.
But we are not satisfied with only reaching trade
agreements. We are equally concerned that implementation of
6
those agreements produces a permanent improvement in acess to
Japanese markets. The United States is committed to closely
monitoring the implementsation of US-Japanese trade agreements.
Prime Minister Miyazawa has referred to Japan's goal of
becoming a "lifestyle" superpower. The arrival of TRU not only
heralds a new age -- it also will help the Prime Minister to
5
achieve that goal. It will do that by making avaiilable American
goods among a worldwide selection of products, at prices better
than those now available.
exporters and for Japanese consumers.
--brief remarks (2 pages)
--Sec. Mosbacher
--general: Kyoto
--both US and Japan benefit from free trade and open markets --
our economic relationship is not a zero-sum game for either
partner
--the US is a Pacific power, with vital economic, as well as
political, interests in the region
--Japan is important market for US exports and a source of US job
creation; Japan #2 market for US exports -- US is Japan's #1
--more than 1/3 of our total trade is with Asia
--US-Japan relationship helps reinforce global cooperation for
benefit of citizen of all nations
--US-Japan single morst important bilateral econonmic
relationship in the world
--global neighborhood
--interdependence in communication/technology new world
--the opportunities and responsibilities of interdependence
--have much to learn from each other -- "gamman"
--global neighborhood
--largest exports Konishiki and Ake Bono
--I wanted to buy some souvenirs, but Barbara cut my kozu kai.
--have much to learn from each other -- "gamman"
"the lantern-bearer should go ahead" -- everyone point of
light, nationally and internationallly
--"I do the very best I know how -- the very best I can; and I
mean to keep on doing so until the end." -- Abraham Lincoln
--"Destiny is not a matter of chance; it is a matter of choice.
It is not something to be waited for; but, rther something to be
achieved. -- William Jennings Bryan
USNEWS:
--after three years of tortuous negoations, world's top purveyor
of toys opens --
-first foray winot Japqn by large US Discounter
$6b Japanese toy market
arduous process
for decades, shielded small merchants from competition
under pressure from DC, Tokyo shortened large-store application
process to no more than 18 months, one of first to tke advantage
TRU
--8,000 difff. products
--"many barriers are private-section equivalent of high tariffs"
--need additional trade concessions
--cracking foreign markets creates more American economic growth
and more American jobs
JBMEMEMO
--Osaka area is important business environment
emphasis on distribution of American goods
success of structured import initiative
-pep talk to Am. business -- distribution networks
first large US discount store
-hope ?TYR first in long line of us stores to locate in Japan
work of Carla Hills, US Trade Rep
BUSINESS WEEK:
-"most visible payoff of the SII aimed at prying open new mrkets
for American companies in Japan."
--slowly negotiating local barriers still in place after Large-
Store Law's amendment
--1/3 of toys will be imports (Huffy, Barbie, Tonka)
still faces obstacles in Japan
--world's toughest retail market
11/22 letter:
--TRU arrival in Japan symbolizes our determination to eliminate
a major trade barrier in the Japanese distribution system.
SII negotiations took dead aim at entrenched structural
barriers preventing Am. companies from competing in Japanese
markets
--new, more level playing field now emerging in Japan
--pave way for increased sales by US toy manufacturers -- TRU
presence in japan allow them toa ggressively export in this very
difficult market -- means new jobs in America -- 40,000 by end of
decade just by TRU expansion overseas
--Am. retailers are most innovative and advanced in the world --
workers produce world-class products
HASBRO:
--strong message underlining importance of US exports to Japan -
-this is great expample of American entrepreneurship seeking to
break down barriers in foreign markets
HUFFY:
--importance to balance of trade of opening Japan to US exports
-stores showcase availablility of US products -- symbol of
initiatl breaking down of Japanese trade barriers
TREASURY
--US/Japan single more important bilateral economic relationship
in the orld -- witht he world's two lrgest economies, tehir
actions impact many other nationas. Have cooperated closely, for
instane in Economic Summit and G-7 framework, but a number of
contentious economic issues plague the relationship --
--SII -- an important inititaive to reduce impediments t
competition and adjustment of external imbalances -- SII success
can help to head off protectionism. For example, US has urged
Japan to: increase public infrastructure inveemsnt to improve
economic well being; reduce monopolistic effects of keiretsu
business practices; and open up distribution ystem to imports.
Essential we re-energize the SII process by introducing new
commitments on both sides.
BUSINESS
Selling toys to Tokyo's tots
When it comes to the Japanese market, Toys 'R' Us isn't playing around
T
he presents are not piling up as
With McDonald's Japan as its local
probably needn't fret about other U.S.
high as usual under Christmas
partner and 20 percent share owner,
stores rushing in. That's because few
trees in economically troubled
Toys "R" Us soon entered into negotia-
American retailers have the financial
America, but across the Pacific, Toys
tions with several communities.
resources to mount a similar operation
"R" Us has something to be jolly
Gaining a toehold was hardly kid's
in a nation where a square meter of
about. After three years of tortuous ne-
stuff, however. The firm spent thou-
prime real estate can cost $6,000. There
gotiations, the world's top purveyor of
sands of hours in meetings with local
are many other barriers to entry, such
toys opens its inaugural outlet 40 miles
officials and residents. And it can now
as the exclusive relationships among re-
outside Tokyo this week- -
the first foray into Japan
TORIN BOYD FOR USN&WR
by a large U.S. discounter.
Toys "R" Us is expand-
ing overseas faster than a
toddler tearing through
the house on a Big Wheel.
The New Jersey-based
children's specialty chain
has not just set its sights
on the $6 billion Japanese
toy market. In addition to
its 451 outlets in the Unit-
ed States, the company
now boasts 98 toy stores
around the world, and its
foreign base is expected to
double over the next three
years. As a result, interna-
tional sales will reach
about $1 billion this year
and could nearly quadru-
ple to $3.7 billion by 1996.
In the course of its ex-
Setting up shop. Workers in Japan prepare for the grand opening of Toys "R" Us this week.
pansion, Toys "R" Us has
often encountered resistance from fear-
look forward to similar marathons for
tailers, wholesalers and manufacturers,
ful local merchants overseas. But the
each of the 99 other outlets it plans to
which tend to shut out all newcomers.
process has been especially arduous in
open in Japan over the next decade.
Critics charge that such cartel-like ar-
Japan. For decades, Tokyo shielded
Toys "R" Us Japan is also having trou-
rangements are the private-sector
small merchants from competition. Un-
ble securing direct suppliers and low-
equivalent of high tariffs.
der the notorious Large-Scale Retail
cost contracts from toy makers. Com-
But U.S. exporters may indirectly
Store Law, local shop owners could stall
puter-game supplier Nintendo says it
benefit from the changes sweeping Ja-
incursions by large retailers for 10 years
will only offer prices "acceptable to oth-
pan's retail industry. More than 90
or more. That's one rea-
USN&WR
er Japanese wholesalers."
large shopping centers are scheduled to
son why Japan's 1.6 mil-
Global fun and gains
But Toys "R" Us's ef-
open in Japan this year, and the num-
lion mom and pop shops
Toys "R" Us has boosted its
forts should soon pay off.
ber of malls is expected to double to
account for more than
bottom line by aggressively
Each outlet is expected to
3,000 by the end of the decade. As a
half of all retail sales,
expanding overseas
register sales of at least $15
result, big Japanese merchants will be
compared with just three
million during the first
stepping up overseas purchases.
percent in America.
18%
TOYS "R" US FOREIGN
16
year. It's easy to see why.
Despite this potential business, Wash-
Quick move. Under pres-
SALES AS PERCENTAGE
OF TOTAL SALES
14
Compared with the typical
ington will continue to push Tokyo for
sure from Washington,
12
small Japanese shop, which
additional trade concessions. While the
Tokyo shortened the
10
stocks about 2,000 items,
large-store application
8
haggling continues, however, Toys "R"
6
the U.S. toy retailer will of-
Us will be ringing up big sales in Japan.
process to no more than
4
fer 8,000 different prod-
And that will bring the American retail-
18 months in 1990. And
2
ucts, ranging from made-
one of the first retailers to
0
er - as well as many Japanese children
'86
87
'88
'89
90
'91
(est.)
in-U.S.A. Huffy bikes to
extra cheer this holiday season.
take advantage of the
USN&WR Basic data: Toys "R" Us Inc.;
Mattel's Barbie dolls.
change was Toys "R" Us.
Alex. Brown & Sons Inc.
Japan's small merchants
BY JIM IMPOCO IN TOKYO
54
U.S.NEWS & WORLD REPORT, DECEMBER 23, 1991
DEC 13 '91 02:52PM
P.1
SI-WEL INTERNATIONAL
COLUMBIA SQUARE
555 THIRTEENTH STREET NW
WASHINGTON DC 20004-1109
LEWIS I. COHEN
(202) 637-5600
FAX: (202) 637-5910
PRESIDENT
TELEX: 248370 (RCA)
DIRECT DIAL (202) 637-6834
Jeannie Bunton
December 13, 1991
TO:
DATE:
Lewis Cohen
2:30 PM
FROM:
TIME:
3
TOTAL NUMBER OF PAGES INCLUDING COVER:
Jeannie, in the light of our conversation yesterday,
MESSAGE:
Toys "R" Us asked me to put these themes together for
your use. Let me know if you need anything else.
Lew Cohen
FOR OPERATOR ASSISTANCE
(202) 637-5900
456-6218
FAX NUMBER
(202) 637-5910
PLEASE CALL THE ABOVE ASSISTANCE NUMBER IF TRANSMISSION IS GARBLED
OR INCOMPLETE.
1266
CLIENT/MATTER #
DEC 13 '91 02:52PM
P.2
BETH TINS SET OF TPS FROM
Toys R us
Suggested Themes For Inclusion in the President's Remarks
A.
President Bush created the critical opening which allowed Toy
"R" US to enter the Japanese market.
O
A key Bush Administration trade policy objective was to
break down barriers in Japan's market to the sales of
U.S. goods and services.
The President launched the Structural Impediments
Initiative (SII) to promote the elimination of barriers
in Japan's distribution system, put a brake on
exclusionary business practices and attack other policies
and practices ho ding back American companies seeking to
enter the Japanese market.
SII produced a major breakthrough in the distribution
system as Japan agreed to adopt liberalized rules
governing the opening of large retail stores.
o
Toys "R" Us is taking full advantage of the President's
SII success and is committing over $100 million to
opening of 20 stores during the first phase of its
Japanese operation.
B.
The President is not satisfied with reaching trade agreements
alone, he is equally concerned that implementation of those
agreements produces a permanent improvement in access to
Japanese markets.
O
While the SII breakthrough was a remarkable achievement,
Toys "R" Us and other American companies continue to
depend on the support of the US Government to ensure that
the Japanese market remains open.
O
The President's visit will clearly demonstrate his
commitment closely to monitor the implementation of U.S.
Japanese trade agreements.
C.
Toys "R" Us as an aggressive, innovative American company
ready and willing to risk its own capital to bring new and
unique marketing techniques to Japan and other major world
markets, sets the right example for other U.S. companies to
follow.
O
Innovation is a key American characteristic and Toys "R"
Us is on the very frontline of innovative U.S. companies
bringing the benefit of new ideas in distribution to
consumers around the world.
DEC 13 '91 02:53PM
P.3
o
Toys "R" Us entered the international marketplace in 1984
and has seen its international sales grow from zero to
a billion dollars in 1991.
Toys "R" Us is a primary example of an American company
heeding the President's message to demonstrate the
effectiveness and energy of U.S. enterprise to the world.
O
When the President succeeded in lowering the key barrier
blocking access to the Japanese market, Toys "R" Us was
there, ready to take full advantage of the opportunity.
D.
Toys "R" Us is a magnet drawing U.S. manufactured products
into foreign markets creating new jobs and profits in America.
O
Toys "R" US sells over $200 million a year in U.S.
manufactured products in its stores around the world, a
figure which is growing rapidly.
O
U.S. toy manufacturers have come to depend on Toys "R" US
to help them to penetrate foreign markets by providing a
ready made and familiar outlet for their products.
O
Toys "R" Us acts both as importer and as distributor
(receiving, warehousing, labeling, pricing, transporting
and merchandising) for many American companies in markets
where they had little or no access.
o
Toys "R" Us provides smaller American companies with the
scale that they need but otherwise cannot achieve to sell
in Japan.
E.
Prime Minister Miyazawa has referred to Japan's goal of
becoming a "lifestyle" superpower.
o
Toys "R" Us' arrival in Japan will help the Prime
Minister to achieve that goal by making available
American goods among a worldwide selection of products
and prices better those now available in Japan.
12. 13. 91 09:01 AM
P O 2
POINTS TO BE MADE AT TOYS R US
o
Toys R Us is a familiar name to anyone with children in the
United States and now to families in more than ten other
countries as well.
O
Toys R Us has the global orientation that is essential to
succeed in today's global marketplace.
o
Toys R Us now has 126 stores in ten countries, compared to
497 stores in the US. Its overseas sales went from zero in
1984 to over one billion dollars this year.
o
Toys R Us years ago recognized that Japan, the second
biggest economy in the world with consumers who
increasingly are demanding wider choices and lower prices,
without any compromise in their quality standards, would be
a prime market.
o
Toys R Us made no headway in opening here, though, because
of complicated government regulations that made opening new
stores -- especially by foreign retailers -- all but
impossible.
Through the Structural Impediments Initiative, SII, Japan
undertook to liberalize its distribution system. The goal
was to increase imports by cutting the costs of bringing
them to market, and by increasing the number of outlets
them.
o
Japanese consumers and American workers benefit. Japanese
consumers, because Toys R Us will bring wider selections,
competitive prices, and quality toys from all over the
world. American workers, because Toys R Us estimates that
its overseas sales of US-made toys will generate new jobs
for 40,000 American toymakers by the year 2000.
SII has produced important results for US exporters and
Japanese consumers. It aims to clear away the structural
features of our economies which obstruct trade and
investment. We have come to understand each others'
economies better through SII. We must continue the effort.
and
Government can help change the rules of trade and
investment to promote competition, benefitting workers and
consumers alike. The US Government worked closely with
companies like Toys R Us to learn what the problems were,
and together we devised solutions.
O
Toys R Us is on a path that I hope many others will
follow. Japan is changing -- the American companies here
know that -- and there is opportunity for our workers and
firms.
sejec 6709
12 DECEMBER 1991
MEMO FOR QOG
FROM:
JB
JB
SUBJECT: TOYS-R-US
PER TORKELL/NSC
EVENT IS RIBBON CUTTING FOR NEW STORE IN CITY OF NARA
EVENT ATTENDED BY AMERICAN BUSINESS PEOPLE (MEMBERS OF THE
AMERICAN BUSINESS COMMUNITY) FROM THE KANSAI REGION
AUDIENCE LOW 100-200S
SEC. MOSBACHER AND THE CORE AMERICAN BIS GROUP WILL BE THERE.
TALKING POINTS:
OSAKA AREA IS AN IMPORTANT BUSINESS ENVIRONMENT
AMERICAN BUSINESS COMMITMENT TO JAPANESE MARKET
EMPHASIS ON DISTRIBUTION OF AMERICAN GOODS
SECOND STORE IN JAPAN
SUCCESS OF STRUCTURED IMPORT INTIATIVE
PEP TALK TO AMERICAN BUSINESS NOT TOYS BUT DISTRIBUTION
NETWORKS
12.13.91 09:01 AM
P01
United States Department of State
Washington, D.C. 20520
OFFICE OF JAPANESE AFFAIRS
FAX COVER SHEET
DATE: 12/13/91
TO: White House - - Ms. Bunton
FAX NUMBER: 456-7565 6218
ADDRESSEE'S PHONE:
FROM: EAP/ J
Jason P. Hyland
FAX NUMBER: 202-647- 4402
SENDER'S PHONE NUMBER: 202-647- 2914
NUMBER OF PAGES INCLUDING COVER SHEET:
2
REMARKS: As discussed Best regards.
UNCLASSIFIED
ONLY
D8
Toys-R-us
THE NEW YORK TIMES, THURSDAY, DECEMBER 5, 1991
THE MEDIA BUSINESS
Advertising
Stuart Elliott
Hard Times
Call for the
Hard Sell
R
ETAILERS are changing the
face they present to shoppers
during the holiday season,
shifting from the warm and fuzzy
image-building long popular at this
time of year to hard-selling product
promotions,
The changes are particularly no-
ticeable in network television and
magazines. They are beginning to
seem more like radio and newspa-
pers, filled with ads emphasizing
prices, sales, limited-time offers and
contests.
"Every bit of economic news is
negative," said Pete Vetowich, execu-
tive vice president and director of
retail at Ross Roy Group, which cre-
ates campaigns for K Mart and the K
Mart Corporation's chains of office
supply, sporting goods and home-im-
provement stores.
"You put that on top of the short
selling season," Mr. Vetowich added
J. Walter Thompson
in a telephone interview from his
office in Bloomfield Hills, Mich., "and
A commercial for Toys "R" Us promotes the stores' selection of lower-priced video games.
there's reason to be very promotion-
al.
The changes are apparent in cam-
paigns for K Mart, by Ross Roy;
will be altruistic, listing charities to
president and management director
Sears, Roebuck & Company, by
which donations can be made, while
Foote, Cone Direct has 50 employ-
Ogilvy & Mather Chicago, and Toys
the other, called "Best of Gifts," will
at Thompson New York, adding,
ces at offices in Toronto and Chicago
"They know people are not as gener-
be packed with products and prices.
and billings of $45 million.
"R" Us Inc., by J. Walter Thompson
ous in spending money as in the
New York, and they echo what has
past.
been occurring in brand-name con-
When the spots start running on
sumer products from cereal to soap.
Dec. 13, "we'd love to do them 50-50,"
Among similar measures that Toys
"R" Us is pursuing, Mr. Rose listed
There, too, long-term Image advertis-
she continued, but in all likelihood the
radio commercials centering on a
ing has become subordinate to short-
sales pitch will predominate.
guaranteed-low-price program and
term promotional programs.
For Toys "R" Us, Thompson New
booklets of coupons good for dis-
"In this tough economy, to keep the
York has produced a television com-
counts on purchases of Mattel Inc.
stores open, you've got to sell prod-
mercial touting the toy stores' selec-
toys.
uct," said Susan Marber, vice presi-
tion of lower-priced video games, at
$14.98 to $19.98, in addition to another
At K Mart, shoppers will find they
dent and group management supervi-
can enter a sweepstakes, called "Cel-
sor at Grey Advertising Inc. in New
spot, sans prices, devoted to the new
ebrate a Magical Disneyland Christ-
York, which creates broadcast spots
Nintendo Entertainment System.
mas," that offers more than 100,000
for Bloomingdale's. Today and to-
Toys "R" Us executives "wanted
prizes like a $500,000 annuity and
morrow, she added, the agency will
to make sure they were viewed as
3,000 trips to Disneyland.
shoot two holiday television spots for
having reasonably priced video
While in previous, more economi-
the retailer; one, called "Give Hope,"
games as well as the higher-priced
cally robust years, it would have been
'ones," said Marty Rose, a senior vice
unusual for retailers to sponsor such
consumer-enticing contests, "when
economic conditions are not really
strong, anything we can do to en-
hance sales is our job," said Jerry
Habeck, K Mart's vice president of
advertising in Troy, Mich.
agencies say they recognize the prob-
lems it can generate, like weakening
a brand name's value and condition-
prices are marked down.
"It is inevitable that if you take the
Photocopy-Preservation
Photocopy
For all the popularity of promotion-
al advertising, retailers and their
ing consumers to buy only when
price message to its logical conclu-
sion, you go out of business," said
Tom Hall, president and chief execu-
tive at Ogilvy Chicago. That is why,
he added, the agency, in creating
Sears's holiday campaign, "gave con-
sumers both kinds of messages, the
price-product message and reasons
why 10 feelsmart or good about shop-
ping at the store."
NOV
91
P.2
TOYS'R'US®
TP-FY1 TP-
461 FROM ROAD
PARAMUS, NJ 07652
ROBERT C. NAKASONE
VICE CHAIRNAN
(201) 599-6960
PRESIDENT
WORLD- WIDE Toy STORES
November 22, 1991
Mr. Sig Rogich
Assistant to the President
The White House
Washington, DC 20500
Dear Sig:
We welcome the news of President Bush's visit to Japan at the
beginning of January and want to extend an invitation for him to
visit one of our new stores during his trip.
Toys "R" Us arrival in Japan symbolizes President Bush's
determination to eliminate a major trade barrier in the Japanese
distribution system. We owe our very presence in Japan to the
President's vision and toughness as he launched the Structural
Impediments Initiative (SII) negotiations which took dead aim at
entrenched structural barriers preventing us and other American
companies from competing in Japanese markets. The President
deserves full credit for this untold success story.
Toys "R" Us is now a $6 billion company which has rapidly grown
at over 23% a year for over a decade. We currently have 497 toy
stores in the United States and 126 stores overseas. In less
than 7 years, we have opened these 126 international toy stores
in 10 countries and have seen our international sales skyrocket
from nothing in 1984 to over $1 billion in 1991! Japan's huge
market is crucial to maintaining our momentum overseas. Until
SII succeeded in producing changes in the Large Scale Retail
Store Law, we were continually stymied in our efforts to begin
operation in Japan.
In the last year, we've responded vigorously to the new, more
level playing field now emerging in Japan. our first 2 stores
will open on December 20th and January 4th respectively. By the
end of '92, our investment in Japan will exceed $100 million (in
7 stores, a distribution center, and office) and underscores our
P.3
page 2
company's commitment to succeeding in the Japanese market. We
currently have another 20 stores in various stages of planning
and approval process. We anticipate that Japan will eventually
be our largest market outside the U.S. with at least 100 stores.
In Japan, as we have done in European and other foreign markets,
we will pave the way for increased sales by U.S. toy
manufacturers. Companies like Fisher-Price, Huffy Bikes, Little
Tikes, Hasbro/Milton Bradley/Parker Brothers/Playskool, with
manufacturing plants across America, are taking advantage of the
unmatched range of products available in our stores to create new
markets for themselves overseas. They tell us that our presence
in Japan will finally allow them to aggressively export in this
very difficult market. Both for them and for us this means new
jobs in America and more weight on the export side of the trade
balance. In fact, by the end of the decade, our expansion
overseas will allow another 40,000* American workers to earn
their livelihoods in manufacturing toys for export to our stores
around the world.
Toys "R" Us knows that American industry produces world class
products. American retailers are the most innovative and
advanced in the world. We have every intention of applying our
American know-how to the challenge of getting made-in-the-U.s.A.
products into foreign markets.
Toys "R" Us has spent more than 3 years in an excruciatingly
difficult effort to reach the point of opening our first 2 stores
in Japan. The road ahead will not be any easier. As we expand
we will be spurred to even greater efforts secure in the
knowledge that we can count on the full support of President Bush
and his Administration. A visit by President Bush to one of our
Japanese stores will put the Japanese government and the Japanese
business establishment on notice that he intends to hold them to
their SII commitments and that there are aggressive American
companies eager to take on and beat the best Japan has to offer
on their home turf.
Sincerely,
nahasone
Robert C. Nakasone
Vice Chairman
President World-Wide Toy Stores
*We estimate that approximately 20% of our overseas sales are
generated by products manufactured in the United States.
10:23AM
TOYS
R
US
P.4
HASBRO, INC.
1027 NEWPORT AVENUE
P.O. BOX 1058
PAWTUCKET. RHODE ISLAND 02862-1069 U.S.A.
HASBRO
TELEPHONE (401) 431-TOYS
FAX: (401) 727-5544
November 21, 1991
Mr. Sig Rogich
Assistant to the President
The White House
Washington, D.C. 20500
Dear Mr. Rogich:
I was delighted to learn that President Bush will
visit Japan in January.
When he visits Japan, we would sincerely hope and
implore that the President should deliver a strong message
underlining the importance he attaches to U.S. exports to
Japan. In that context, we strongly urge that he give
substance to that message by paying a visit to one of the
new Toys R Us stores in Japan. I can think of no better
example of American entrepreneurship seeking to break down
the barriers in foreign markets than Toys R Us, and for
that matter, ourselves.
Let me digress for a minute and explain who we
are. Hasbro, Inc., was founded in 1923. Today we are made
up of six different companies; those being: Hasbro Toy,
Playskool Baby, Playskool, Kenner Toys, Milton Bradley and
Parker Brothers. Worldwide we employ approximately 10,000
people but I am more than proud to say that in America, we
employ approximately 5,000 - a good many of them in
manufacturing jobs. If you are unsure of the names of the
companies that I refer to, I would only ask you and the
President to reflect upon some of the toys that we make,
such as Tinker Toys, Lincoln Logs, Mr. Potato Head,
Monopoly, Scrabble, Spirograph, Candyland, Tonka Trucks,
and G.I. Joe, and these are but to name a few.
In many countries around the world, we have found
definitive trade barriers - probably none more than in
Japan. Many of these import barriers are subtle, but
nevertheless, they have precluded us from exporting product
from America. It's our firm belief that with the entree of
Toys R Us into Japan, that we can expand our export
business to Japan. In 1988, our business was zero, and
today we do about one million dollars, but I believe the
immediate affect would be to grow our business to at least
five million dollars within two years, and probably 25
million dollars in Japan alone over five years. I know
this will sound infinitesimal, but this could relate to
about 120-180 more manufacturing jobs here in America.
TOTAL PAGE. 001
Mr. sig Rogich
-2-
November 21, 1991
In all of the countries that we have seen Toys R
Us go into, we have been able to increase our export
business. I cannot quantify here but they have been
dynamic openers of the toy field everywhere they have
touched. Not only will they help our country, but so too
Japanese consumers.
We are excited by the arrival we Toys R Ub 111
Japan. The Japanese market is huge and holds enormous
potential for the sale of our product lines. Without Toys
R Us, we will continue to flounder.
I balieve the trip so important that if it's of
any meaning at all, I would 20 MORE than happy to make
myself available in Japan at the time that the President is
there.
with warmest regards.
Sincerely yours,
HASBRO, INC.
ath
Alan G. Hassenfeld
Chairman and
Chief Executive Officer
AGH/sm
PAGE
NOV 22 '91 10:24AM TOYS R US
P.6
HUFFY
CORPORATION
Harry A. Shaw III
Chairman and Chief Executive Officer
November 21, 1991
Mr. Sig Rogich
Assistant to the President
The White House
Washington, D.C. 20500
Dear Mr. Rogich:
Huffy Corporation is a leading producer of bicycles and juvenile products in the
United States. Our products are sold by mass retailers throughour the United
States and, in recent years, in Canada, Europe and the Far East. Our export sales
are growing and, when coupled with strong domestic sales, have resulted in
record sales for our shareholders and full employment for our employees in this
recession year.
Our efforts to increase export sales have been aided by the expansion of our good
customer, Toys 'R Us, into European and Asian markets. Toys 'R Us has used its
know-how and retailing techniques to open these markets and offer U.S. made
products, like Huffy bikes and Gerry baby products, to consumers in other nations,
to the benefit of Huffy and its employees in Ohio, Wisconsin, and Colorado where
these products are made.
The establishment of Toys R Us stores in Japan is especially interesting to us,
The Japanese market is huge and our previous studies indicate that, properly
marketed. there is a substantial opportunity to sell Huffy bikes and Gerry baby
products there. We know from experience that Toys 'R Us will bring the needed
marketing techniques to Japan.
We understand that the President will be visiting Japan in January. We hope he
continues to stress the importance to the balance of trade of opening Japan to
U.S. exports. He could emphasize that message by visiting one of the new
P.O. Box 1204, Dayton, OH 45401, Telephone (513) 866-8251
NOV
22
'91
10:25AM TOYS R US
P.7
Mr. Sig Rogich
November 21, 1991
Page 2
Toys 'R Us stores in Japan which showcase the availability of United States
products (including those manufactured by Huffy), and using it as 8 symbol of the
initial breaking down of Japanese trade barriers. We urge him to support the
efforts of our good customer, Toys 'R Us, on his visit to Japan.
Sincerely,
Harry 1Jarry A. Shaw III than
Chairman and Chief Executive Officer
wsd
CC: Mr. Robert Nakasone
Mr. Derrick Crandall
WHS2:0I
x
P.8
Fisher-Price
November 22, 1991
Mr. Sig Rogich
Assistant to the President
The White House
Washington, D. C. 20500
Dear Mr. Rogich:
I was delighted to learn that President Bush will visit Japan in
January. Fisher-Price, Inc. manufactures infant and preschool
toys and juvenile products. We have taken the President's advice
to heart and have aggressively sought foreign markets for our
products. We have enjoyed considerable success but progress in
the Japanese market has been difficult. These new foreign markets
have cushioned some softness in our U.S. sales.
Our ability to expand in other export markets owes much to the
arrival of TOYS "R" US in European and Asian markets. By bringing
advanced U.S. retailing techniques to markets which had been
closed to U.S. manufacturers, TOYS "R" US was able to pry open
these markets for us. Since most of our products are manufactured
in the U.S. at our plants in Kentucky and New York, the result is
increased sales, profits and jobs in America.
We are excited by the arrival of TOYS "R" US in Japan. The
Japanese market is huge and holds enormous potential for the sale
of Fisher-Price's high quality products. Without TOYS "R" US, it
would continue to be very difficult for us to be successful in
that market.
When he visits Japan, we believe that the President should deliver
a strong message underlining the importance he attaches to U.S.
exports to Japan. In that context, we strongly urge that he give
substance to that message by paying a visit to one of the new
TOYS "R" US stores in Japan. I can think of no better example of
aggressive American entrepreneurship seeking to break down the
barriers in foreign markets than TOYS "R" US.
Sincerely,
FISHER-PRICE, INC
PRoviles
International
JTB/mu
Fisher-Price. Inc., 636 Grard Ave.. East Aurora, NY 14052 (716) 687-3000
** TOTAL PAGE. 002
P.9
KRANSCO*
kransco
160 PACIFIC AVENUE. P.O. BOX BEASSS
FAX 419/989-7180
SAN FRANCISCO, CALIFORNIA 94188-4565 415/433.9350 TELEX 338-938
Mr. Sig Rogich
Assistant to the President
The White House
Washington D.C. 20500
Dear Mr. Rogich,
I was delighted to learn that President Bush will visit Japan
in January. The Kransco Group Companies manufacture battery
powered ride on vehicles. We have taken the President's advise
to heart and have aggressively sought foreingn markets for
our products. We have enjoyed considerable success. Since
1988 our export sales have increased by 300 percent, to twenty
five million dollars. These new foreign markets have cushioned
some softness in our U.S. sales.
Our ability to enter the export market owes much to the
arrival of TOYS "R" US in European and Asian markets. By
bringing advanced U.S. retailing techniques to markets which
had been closed to U.S. manufacturers, TOYS "R" US was able
to pry open these markets for us. Since literally all of
our products are manufactured in the U.S. at our plants in
Indiana, California and Virginia, the result is: increased
sales, profits and jobs in America.
We are excited by the arrival of TOYS "R" US in Japan. The
Japanese market is huge and holds enormous potential for
the sale of Power Wheels. Without TOYS "R" US, it would be
very difficult for us even to contemplate entering that
market.
when he visits Japan, we believe that the President should
deliver a strong message underlining the importance he
ataches to U.S. exports to Japan. In that context, we strongly
urge that he give, substance to that message by paying a visit
to one of the new TOYS "R" US stores in Japan. I can think
of no better example of aggressive American entrepreneurship
seeking to break down the barriers in foreign markets than
TOYS "R" US.
Sincerely,
JOHN G. BOWES
JOHN N. ROSEKRANS JR.
Chairman
President
C.C. GOVERNOR PETE WILSON
A
1991
4:19PM
P.10
P.02
little likes
Gary S. Baughman
November 21, 1991
President
Mr. Sig Rogich
Assistant to the President
The White House
Washington, DC. 20500
Dear Mr. Rogich:
I was delighted to learn that President Bush will visit Japan in January. Little Tikes is the second
largest and fastest growing preschool toy company in America, famous for our lines of safe,
highly durable children's products. We have taken the President's advice to heart and have
aggressively sought foreign markets for our products. We have enjoyed considerable success.
Since 1988 our foreign sales have more than doubled, and by 1993 we expect to sell over $100
million in toys outside the U.S. These new foreign markets have helped keep our factories
running at full speed even during the current economic downturn.
Our ability to enter the export market owes much to the arrival of Toys 'R Us in European and
Asian markets. By bringing advanced U.S. retailing techniques to markets which had been
closed to U.S. manufacturers, Toys 'R Us was able to pry open these markets for us. Since
literally all of our products are manufactured in the U.S. at plants in Ohio, Pennsylvania,
Missouri, and California, the result is increased sales, profits and jobs in America.
We are excited by the arrival of Toys 'R Us in Japan. The Japanese market is huge and holds
enormous potential for the sale of Little Tikes entire product line. Without Toys 'R Us, it would
be very difficult for us even to contemplate making serious headway in that market for many
years.
When he visits Japan, we believe that the President should deliver a strong message underlining
the importance he attaches to U.S. exports to Japan. In that context, we strongly urge that he
give substance to that message by paying a visit to one of the new Toys 'R Us stores in Japan.
I can think of no better example of aggressive American entrepreneurship seeking to break down
the barriers in foreign markets than Toys 'R Us.
President Gary Gary Sincerely, S. Baughman Baughwar
GSB/dh
The Little Tikes Company
2180 Barlow Rd
PO Box 2277
Hudson, On 44238-0877
216 650-3000
A Rubbermand Company
SENT BY:ERTL CO.
11-21-91 14:20
ERTL TOYS-
12012628515.# 2/ 2
Telephone 319-875-2000
Facsimile 319-875-8263
George B. Volanakis
President and COO
THE EATL COMPANY, INC.
Highways 138 and 20
Dyersville, lowe 62040 U.S.A.
November 21, 1991
Mr. Sig Rogich
Assistant to the President
The White House
Washington D.C. 20500
Dear Mr. Rogich:
I have recently been informed that President Bush will
be visiting Japan, and I want to inform you of the
importance that foreign market expansion has meant to
The The-Ertl Company prior to his visit. Since 1988, our
export sales have increased 47% to over 25 million
dollars. As a result, during these trying economic
times, export sales have allowed us to maintain a
steady work-force here in Dyersville, Iowa -- a very
small town whose existence is dependent on our com-
pany's financial stability.
A significant part of our export growth has been due to
the arrival of Toys "R" Us in both the European and
Asian markets. Their advanced retailing techniques
have opened up these markets to U.S. toy manufacturers
that were either closed to us or very restricted chan-
nels of distribution.
Toys "R" Us is now entering the Japan market, Their
arrival in Japan holds enormous potential for us in the
sale of our model kit and die-cast vehicle lines (70%
of which are manufactured in our plant in Dyersville).
Currently, our toy and model kit sales are minimal in
Japan, limited by domestic Japanese wholesalers who
protect Japanese suppliers of similar product.
I encourage the President to reinforce the importance
that he personally attaches to U.S. exports to Japan on
his upcoming visit. He might even visit a new Toys "R"
breaking down the barriers in foreign markets.
Us store while in Japan as an example of a U.S. company
Gunge Sincerely, B.Colanchis
George B. Volanakis
kg
Toys "Я" Us. INC.
461 FROM ROAD
PARAMUS, NEW JERSEY 07652 USA
November 21, 1991
TEL.(201) 599-7855
FAX.(201) 262-8443
INTERNATIONAL DIVISION
TLX 710-9905165 TRU RCLL
Mr. Lewis I. Cohen
Si-Wel International
555 13th Street NW
Washington, DC 20004
Re: Toys "R" Us - Kashihara - Japan
Rt. 24
208 Kuzumoto-cho
Kashihara-shi
Nara, Japan
Dear Mr. Cohen:
Our TRU-Kashihara site is located just off Route 24 as it heads
south out of the Nara-Basin area.
This is a two story building of which TRU occupies approximately
4290M2. Including roof top parking there is room for some 332
cars. The site is located 50 KM ± (straight line) from the Osaka
International Airport.
There are some 842,000 residents living within a 15 KM radius.
Attached please find the following:
TRU site plan
TRU floor plan
Nara area map
Detail map
Site photograph
If you need any further information, please do not hesitate to
contact me.
Sincerely
Carl Shoemaker
Director - Operations
CS/jp
Enclosures
CC: (w/copy of encls.)
Larry D. Bouts
Toys "Я" Us, INC.
461 FROM ROAD
PARAMUS. NEW JERSEY 07652 USA
TEL. (201) 599-7855
FAX. (201) 262-8443
INTERNATIONAL DIVISION
TLX. 710-9905165 TRU RCLL
September 13th, 1991
Mr. Lewis I. Cohen
Si-Wel International
555 13th Street NW
Washington, DC 20004
Re:
Arakawaoki - Japan
Aza-Uzurano, Arakawaoki
Ami-machi, Inashiki-gun
Ibaraki Prefecture
Dear Mr. Cohen:
Our TRU-Arakawaoki site is about 60 KM from central Tokyo and
40+ KM from the Narita airport. The site is currently under
construction and includes Kasumi (department store) plus a space
for some 10 smaller retail stores. The site would be considered
a typical retail park with approximately 870 parking spaces.
There are an estimated 432,000 residents within a 15 KM radius
of the store.
Our portion of the site includes approximately 44,000 sq. ft.
total with 29,800 sq. ft. for the sales floor and 14,250 sq. ft.
for pre-sales or storage space.
Attached please find:
Map of Japan (specifically the Tokyo area)
Site plan
TRU floor plan
If you need any further information, please do not hesitate to
contact me.
Sincerely,
Cash Shoemaker
Director - Operations
CS/lch
Encls.
CC: (w/ copy of encls.)
October 30, 1991
MEMORANDUM FOR SPEECHWRITERS
RESEARCHERS
FROM:
JENNIFER GROSSMAN
SUBJECT:
ASIA PRE-ADVANCE RESEARCH
JAPAN
SCHEDULE
FRIDAY:
--arrival ceremony with Emperor (open press, troop
review), then courtesy call on Emperor at Imperial
Palace
--meeting with Prime Minister Miyazawa at Akasaka
Palace
--Imperial Banquet, Imperial Palace, after dinner toast
SATURDAY: --tennis and breakfast with the Emperor
--visit Mita Senior High School (visit geography lab,
then nationally televised 5 min. remarks followed by
Q&A with students from around the world).
--major speech at Japanese Diet, lower house. 15-20
minutes, focusing on the responsibilities of
interdependence, and maybe Japan's role in NWO.
-brief remarks at Kodak R&D plant in Yokohama. First,
lunch with U.S. business leaders, Visit Kodak
Laboratory, then address to U.S. business leaders and
Kodak staff.
--one on one meeting with PM, then expanded bilaterals,
then joint press statement
--welcoming reception at Hotel New Otani with brief
remarks to 2000 -- a kind of welcoming committee of
business leaders, politicoes, etc. Tone should be real
upbeat.
--Dinner with PM at PM's residence, after dinner toast
SUNDAY:
--private breakfast
--Emperor makes goodbye call to POTUS
-attend church (maybe)
-Embassy greetings
--AF1 to Kyoto, accompanied by PM
-walking tour of Imperial Palace
-lunch with PM at Omiya Palace, (Secretary Alexander
may simultaneously lunch with Stanford students and
JET, Japan English Teaching Program, teachers).
Walking tour of Omiya gardens. Brief remarks to
American and Japanese students.
--may visit Nijo Castle
JAPAN
POLICY THEMES
Torkel Patterson of the NSC has advised me that while the
main focus of the President's trip here will obviously be on
trade issues, there will be a strong effort to tie in American
domestic concerns wherever possible. The context: the global
neighborhood; interdependence in communication/technology
revolutionized, politically post-modern (Pinkerton) new world
order.
Two challenges. One: selling a responsible trade policy
toward Japan back home, when the protectionist/isolationist
harangues from the right and left offer such politically
hysterical appeal. Two: eliciting concessions and continued
progress from the Japanese at a time when tolerance for continued
American Japan-bashing is reaching its limits.
A couple of notes on first challenge. Japanese buy more per
capita from America than Americans buy per capita from Japan (the
"trade deficit" as commonly heralded fails to account for
population ration, i.e. far greater U.S. pop than Japan pop).
The Japanese buy more from the United States than they buy from
the U.K., France, and Italy combined.
When addressing trade issues with the Japanese we might
stress "the opportunities and responsibilities of
interdependence.' We want to challenge Japan to have the most
open market by the year 2000. (Incidentally, in technical terms,
tariff barriers for instance, Japan's market is more open than
ours. Impenetrability more often comes from hidden barriers --
like regulation size paper or car manufacturing standards -- and
on Japanese consumer preferences for the familiar.) Anecdote:
Japan used to exclude American baseball bats because they didn't
carry the right seal, a seal only available to Japanese firms.
Encouraging continued Japanese progress on rectifying
environmental abuses: While industrializing, Japan was one of
the worst environmental offenders internationally. Since then,
they have made great strides in cleaning up their act. For
instance, all their taxicabs run on natural gas. While the
Japanese are generally willing to move forward on environmental
issues, intransigence stems from anxiety over "keeping your rice
bowl filled,' i.e. concern over loss of jobs in professions with
incidental abuse (e.g. fishermen, tortoise shell craftsmen). The
Japanese usually ask for "transition time" to retrain, relocate
those put out of work by conservation measures, while we want
change "now."
TOKYO SITES
1)
Imperial Palace: I was unable to go on this walk-through
but here's what I gather from other sources. The imperial
banquet will be held in a room called Homei-Den Hall. From
postcards, it looks kind of like a hotel ballroom, with some
kind of abstract Japanese painting of clouds on the wall.
This, apparently, is the way much of the palace looks. The
palace is actually only about 20 years old. The initial
greeting will take place in the Asahi-no-ma, or "Room of the
Rising Sun."
We had bombed the original Imperial Palace in World War
II; it was rebuilt in '69. The palace surrounds a huge
courtyard. The overriding characteristic of the place is a
vast emptiness -- large rectangular rooms with little or no
furniture, walls with sliding panels. The dining room table
will be a big U-shaped deal.
2)
Mita Senior High School: President will tour a couple of
classrooms, go to larger room with Mita students where he
will deliver brief remarks nationally televised. Then he
will field questions from students around the country via a
satellite hook-up. FYI: There's a concern that Japanese
students, generally not encouraged to participate or ask
questions in class, will be so awed by presidential presence
that they'l simply clam up. Perhaps there's some way
(joke? comparison to American students?) that we can
sensitively circumvent such a scenario.
School itself not much different looking from American
high schools. 1,100 students. Was founded as a public
girls' school in 1923. Became coed in 1950, renamed Tokyo
Public Mita Senior High School. In 1977, Mita opened a
class for students returning from abroad. On a couple of
bulletin boards I saw improvised scrawled student demands
manifestos, requesting more interesting classes, more
understanding teachers, etc. These were the work of such
returning students, who are generally more outspoken and
participatory than their colleagues.
While part of our purpose is to show admiration for
Japanese academic excellence, it's ironic that the Japanese
themselves are quite critical of their own system. They in
turn look to our institutions for inspiration. The Japanese
criticize their schools for their emphasis on rote
memorization, aversion to innovation, and lack of
encouragement for independent, critical analysis by their
students. Recently they even passed legislation to stop
Saturday schooling.
I suggest we deal with this by stressing a theme of "we
have so much to learn from each other," rather than, "we
have so much to learn from you.' Moreover, we can touch on
several non-school factors that account for Japanese
academic excellence -- strong family support, recognition of
the link between learning and success, early engendered work
ethic, etc.
3)
Japanese Diet, lower house: parliamentary amphitheater
style hall with large balcony. Rich wood detailing and
carving. POTUS to address reps from podium. 500 Diet
members. See pictures. In the entrance hall/lobby, there
are four pedestals in each corner. Three support statues of
great Japanese statesmen/historical figures, the fourth is
left empty as a symbol of hope, i.e. looking forward to the
great statesmen to come.
4)
Kodak, Yokahama: POTUS will see several gee-whiz high tech
developments in progress, like a super high definition TV.
Brief remarks to Kodak staff. Kudos; America can compete;
appreciation for their hard work and investment; POTUS is
taking steps to improve America's competitiveness.
5)
Prime Minister's residence: unable to go on walkthrough.
CONTACTS: --Blair Hall of AmEmbTokyo, (03) 3224-5336
--Hiroshi Furusana, MOFA 3581-3802
KYOTO SITES
1) Kyoto Imperial Palace (FYI, I don't think there are any
remarks) : Originally built as the Emperor's second palace,
Kyoto Imperial Palace was used as the Imperial Palace from
1331-1867 after the original main palace burnt down. The
Imperial Throne and the August Seat of the Empress, still
used for coronations, are located here. Each rests on a
platform, and is covered with an octagonal canopy, decorated
with a large phoenix and eight small phoenixes.
The last "Ceremony of the Enthronement of His Majesty
the Emperor at the Seiden" took place in the Imperial Palace
on November 12, 1990
2)
Omiya Palace: remarks to students should focus on building
bridges between our two countries through education, facing
the future together. See proverbs.
Some of the students are with the Stanford Japan
Center, established by Stanford University, "for the purpose
of educating future generations of Americans about Japan.
The Center also will provide an institutional link between
American and Japanese research in science, technology, and
social science with the aim of opening up crucial channels
of information and by embarking on new cooperative
initiatives in research between the two nations."
2)
Nijo Castle (again, no remarks) : The castle was originally
built in 1603 to be the official Kyoto residence of the
first Tokugawa Shogun Ieyasu, and it was completed in 1626
by the third Shogun Iemitsu. The lavishly decorated castle
stands as a symbol of the power of the Tokugawa military
government. It contains the famous "Nightingale Corridor,"
whose floors are designed to creak with birdlike noises when
tread upon, thus foreboding an enemy approach.
JAPANESE COLOR:
1)
Finding humor is difficult. Most people I've spoken to say
that the Japanese aren't big on jokes, humor. Moreover,
they will not know to laugh if POTUS tells a joke.
2) The "Japan Series" (similar to our 'world series') in
baseball has just started. This years favorites are the
Hiroshima Carp and the Seibu Lions.
3)
Sumo wrestling is Japan's national sport. Recently an
exhibition tournament was held in London. Two very popular
wrestlers are a pair of American brothers from Hawaii --
Konishiki, who's the biggest Sumo wrestler (600 lbs), and
Ake Bono, who's the tallest. Who knows, maybe we could make
a joke about "gross national products" to an American
audience -- large American exports.
4)
American movies, rock, and rap music are very popular.
Disneyland opened in Japan 6 years ago; Japanese love Mickey
Mouse.
5)
Karaoke is a popular Japanese social activity. Literally
meaning "empty orchestra," karaoke bars play music without
lyrics so that the patrons can star on vocals. Maybe
there's a joke about Barbara wanting to go Karaoke.
6)
Women control the finances in Japanese families -- when to
buy the car, when to invest, etc. The husband often asks
his wife for money for his expenses; this allowance is
called "Kozu Kai. Maybe POTUS can say, "I wanted to buy
some souvenirs, but Barbara cut my kozu kai."
7)
of all their qualities, Japanese are proudest of their
perseverance, endurance, called "gamman." They rate harmony
as highest on their scale of social values.
8)
Relevant to Omiya in Kyoto: a handbook called A Look into
Japan tells us "The Japanese garden is designed to be a
faithful representation of nature and to impart a sense of
simple, unspoiled beauty."
9)
December 23 is the Emperor's birthday.
10) The speechwriting god (Curt, sit down) : Benten, one of the
seven deities of good fortune, is the goddess of eloquence,
music and wisdom.
11) "Banzai," literally meaning 'ten thousand years,' is the
Japanese equivalent of 'three cheers.' It's usually
expressed at the high point or end of a celebration.
12) Japanese proverbs:
"The past is not to be blamed. " (Ki-o wa togamezu) English
parallel would be: "let bygones be bygones."
"The lantern-bearer should go ahead.' (Chochin-mochi wa saki
ni tate) Meaning, he who bears the light, whether material,
intellectual, or spiritual, should lead the way.
"A treasure decaying in one's hands. (Takara no mochi-
kusare) Meaning, those with talent or money should but them
to good use, or else they will rot away.
"To the upper hand there is an upper hand. " (Uwate ni wa
uwate ari). In other words, everyone has to answer to
someone. Maybe there's a first lady joke in here.
"Seven falls and eight rises. " (Nana-korobi-ya-oki)
Perseverance will win in the end.
"There are no national frontiers to learning." (Gakumon ni
kokkyo nashi) i.e. scholarship knows no boundaries.
"To study penmanship at eighty." (Hachiju no te-narai)
Meaning, it's never too late to learn. Could apply to
lifelong learning, or joke on POTUS computer lessons.
"Books are preserved minds." (Shomotsu wa hozon-sareta
kokoro nari) Reminiscent of Highet quote, 'Books aren't
lifeless lumps of paper, but minds alive on a shelf.'
KOREA
POLICY THEMES
Korea wants to have its cake and eat it too. On one hand,
it wants to have a close relationship with U.S., play the big
league with the big boys. On the other hand, it claims the
fragility of a developing economy to justify protectionist
policies. We think they're strong enough to forgo such a
handicap, with ultimately hampers true growth on both sides.
(Note: GB visited Korea after he went to Hirohito's funeral)
Politics: Korea only recently became democratized. We want
to encourage democracy, praise them for ongoing efforts and
progress in that direction.
(War) Heads up: North Korea is developing a nuclear weapon.
There are fears of his becoming the region's Saddam Hussein.
This issue requires some delicacy because a) we support
reunification and b) South Koreans regard their northern
neighbors as brethren. Kim Il Sung, the 82 year old "Great
Leader" of North Korea, will pass the reigns to his son, Kim Jung
Il, widely regarded as less than competent. Fears of a military
coup against the latter complicate the situation.
POTUS SCHEDULE
SUNDAY:
-AF1 to Korea for 3:30 arrival
wreath laying ceremony at National Cemetery, no
remarks
-American community greetings at Collier Field House
private dinner with President Roh at the Blue House
MONDAY:
-breakfast with US and Korean business community at
Hotel Shilla, 5-10 min. remarks (themes similar to
Kodak speech: U.S. can compete, we're working together
to expand trade, importance of GATT
Arrival ceremony at Blue House
--one on one with President Roh, expanded bilaterals,
joint press statement at Blue House
State Luncheon at Blue House hosted by Korean
President, after lunch toast
Address to the National Assembly, 15 minutes
travel to Camp Casey, press the flesh with American
soldiers, 5 min. remarks. Jovial, what a great job
you're doing, last of the front lines type speech.
Acknowledge difficulty of 1 year unaccompanied tour
SITES
1)
Blue House: not on walkthrough, but the scoop as far as I
know is that the Blue House is the official residence of the
President of ROK. The Blue House was constructed in 1927 as
the Japanese government's residence for its Governor-
General. It occupies the grounds of the Yi-Koong palace of
the Koryo Dynasty.
In '48, when ROK was established, the building was
designated the Presidential Residence. After the student
revolution of 1960, it was renamed Chong Wa Dae (Blue Tile
House), a name derived from its unique blue roof tiles.
2)
National Assembly: not on walkthrough, but apparently it's
your usual, rococo, elaborate parliamentary style. I'm told
there's a large symbol behind where POTUS will be standing:
the Flower of Eternal Life framing a Korean character.
The Assembly building is located on Yoido, a large
island on the Han River. Completed in 1975, it houses
offices, meeting rooms, and the Assembly's library. The
current National Assembly is composed of 299 members from
two political parties. It is the thirteenth National
Assembly since the founding of the Republic in 1948. The
Assembly Speaker is Park, Jyun Kyu.
3)
Camp Casey: not on walkthrough, but this base houses U.S.
servicemen on a one-year unaccompanied tour. Their duty is
an uneasy vigil at one of the world's last front lines.
Part of their work is to patrol the DMZ (demilitarized zone)
often camping out in no man's land.
While we honor the returning heroes of Desert Storm, we
should remember also courage and commitment of our men in
Korea -- whose courage and commitment often go
unacknowledged. POTUS should recognize the difficulty of a
one year unaccompanied tour; Camp Casey is what is commonly
referred to as a "hardship post.'
CONTACTS: --AmEmbSeoul, 82-2-732-2106
COLOR
1)
Koreans, I'm told, like the Japanese, would have trouble
knowing how to respond to a joke by POTUS. One way,
however, to break the ice and establish rapport, would be to
mention family -- his family, the American family, family
values, whatever.
2)
POTUS was here in '89, and also in '82 as vice president.
SINGAPORE
POLICY THEMES
Singapore is the only ASEAN country we'll visit -- therefore
we'll want to touch on issues common to those countries. (ASEAN
is made up of Singapore, Malaysia, Indonesia, Brunei, and the
Phillippines.) Singapore is our strongest ally in the region.
Singaporeans welcome us as a balance to Japanese investment.
They have a longstanding fear that Japan eyes them with military
interest.
We'll want to talk about South East Asia and Cambodia,
setting the stage for future dealings with Viet Nam. Instability
in the region: Thailand just had a coup, Burma has a
dictatorship. Cambodia, however, is soon to have UN sanctioned
elections. Ultimately, we'll want to resolve the POW/MIA
question -- an issue some unscrupulous people in the are have
exploited for profit. Resolution will require that Viet Nam be
completely open so we can scrutinize all the records. Until we
get to the bottom of POW/MIA, we can't really say that Viet Nam
is truly over.
I believe there are also some human rights concerns in
Singapore itself.
POTUS SCHEDULE
MONDAY:
--AF1 to Singapore
TUESDAY: --Breakfast meeting at Raffles with U.S. ambassadors to
ASEAN countries, no formal remarks
--Arrival ceremony at Istana Palace
--POTUS makes courtesy call on President and Mrs. Wee
Kim Wee at the Istana Palace
--meeting with Prime Minister Goh Chok Tong, then
expanded bilaterals
--15 min. speech at lecture series to the
Singapore/American Business community, held in Westin
Hotel (Security and Trade: U.S. engagement in the
region; importance of working together towards the
future)
--Business Roundtable meeting at Hewlett-Packard, no
formal remarks
-groundbreaking ceremony for new American Chancery,
embassy greetings type remarks
courtesy call on Senior Minister Lee Kuan Yew.
State Dinner at Istana Palace hosted by President Wee
Kim Wee, after dinner toast
WEDNESDAY: view static display at Changi airport
AF1 to Australia
SITES
1)
Raffles Hotel (just FYI, no formal remarks planned at this
point). Wrote Rudyard Kipling, "Feed at Raffles when
visiting Singapore." Established in 1887, the hotel
symbolizes the exotic charm and colonial nostalgia often
associated with the area. The hotel was named after Sir
Stamford Raffles, founder of modern Singapore in 1819.
Celebs who added their aura to Raffles': Joseph Conrad,
Charlie Chaplin, Douglas Fairbanks, Somerset Maugham, Nowel
Coward, and sundry sultans, kings, and politicians. Raffles
embodied colonial high life: tea-dances, Charleston, jazz
bands, and billiards. Raffles is the birthplace of the
Singapore Sling. In 1902, the last tiger to be shot in
Singapore was pursued in Raffles, and finally dispatched
under the Bar & Billiard Room.
The hotel was declared a protected monument in 1987.
2)
Westin Hotel: the hotel is supposedly the tallest hotel in
the world. The lecture series in which the President takes
part is designed to give political, academic, and financial
eminentoes the opportunity to visit Singapore and mouth off.
Singapore gets to bask in their wisdom.
The series, inaugurated in 1980, is organized by the
Institute of Southeast Asian Studies. Previous speakers
include Henry Kissinger, Milton Friedman, Brian Mulroney,
Raymond Barre, and Giscard D'Estang. 1,500-2,000 will
attend speech.
3)
Groundbreaking ceremony for new American Chancery: this
event will basically take the place of Embassy
Greetings/American community remarks. Projected completion
for new embassy is 1995-6. 150-200 embassy staff, loads of
Singaporean schoolchildren. 2,000 guests in all. Site is
basically just a hill. Use your imagination. Building
metaphors applied to broader scope of U.S.-Singapore
relations might be appropriate.
The U.S. Ambassador in Singapore is Robert Orr. DCM is
Arthur Kobler.
4)
Istana Palace: previously called Government House, the
Istana was built in 1869 to house the British Governor of
Singapore. The grounds had been the nutmeg estate of
Charles Robert Princep. A statue of Queen Victoria was
installed in the drawing room to mark her jubilee in 1889.
Queen Elizabeth and the Duke of Edinburgh stayed there in
February 1972. The edifice itself looks like a cross
between a mini-Versailles and a southern plantation.
Adorning the entry foyer are a matching set of tusks
presented by the Sultan of Singapore to the British
government.
The staff of the President, the Cabinet Office, and a
section of the Prime Minister's office work at the Istana.
CONTACTS: --DCM, AmEmbSingapore, Arthur Kobler, 338-0251, ext.
217
--USIS, Dennis Donahue, 244-5233
COLOR
1)
Singapore is a country of many races, languages and
cultures. The population is made up of Chinese, Malays,
Indians and Eurasians. Harmonious multiculturalism. One
often hears the phrase, "many races, one people." Maybe we
can make some "E Pluribus Unum" connection.
2)
The first American consul in Singapore, Joseph Balestier,
came to the area in 1834 and took up his post in 1837 --
inaugurating 154 years of diplomatic relations. His wife,
Maria Revere Balestier, was the daughter of Paul Revere.
Balestier's memory lives on in a bell, now in
Singapore's National Museum, cast in Boston's Revere Works.
Mrs. Balestier, presented the bell to the original Church of
St. Andrew.
3)
American Embassy Singapore suggests a Pearl Harbor footnote
to our Singapore stop: POTUS will be at Pearl Harbor on
Saturday, commemorating the 50th anniversary of the Japanese
attack, and honoring the resultant 2,400 Americans dead or
missing. We might also remember that on the same day, but
on Singapore's side of the international dateline, the war
began for the Philippines, for Thailand, for Malaysia, and
for Singapore. Bombers appeared over Clark Field and over
Singapore. Ground troops landed at Songkhla and Pattani
(Thailand) and at Kota Baharu (Malaya). Singapore did not
then have an army (British and Australian forces were
there) ; Singaporeans who were either killed or injured were
civilians.
4)
Singaporean suffrage is universal and compulsory.
5)
Orchids are a major Singaporean product (and they're
beautiful).
6)
While there is no compulsory education in Singapore,
attendance is 94% and the literacy rate is over 87%.
7)
POTUS and FLOTUS visited Singapore when Bush was Vice
President.
8)
When the President called Orr to offer him the
ambassadorship, one of his selling points was to tell the
future ambassador how comfy the Residence is. (Orr was
previously Governor of Indiana).
9)
Quayle was here on May 22.
10) The origin of the name "Singapore" comes from the 13th
century's appellation of "Singapura," meaning "Lion City." "
AUSTRALIA
POLICY THEMES
The last President to go down under was LBJ, 21 years ago.
Australia feels left out. They've been a strong ally -- there in
WWII, there in Nam, there in the Gulf. The Australians have been
very grateful to us for saving them from the Japanese in WWII.
But those warm feelings are now being tried by their anger over
trade policies (agricultural subsidies).
Oops on EEPS: Our Economic Enhancement Programs (an American
domestic subsidy so that we can export our products abroad at a
lower price) and the EC's strict protectionist policies have left
Aussies demonstrably furious -- riots, strikes. Need some
stroking action. POTUS needs to show himself as a champion of
free trade, "that's why the Uruguay round is so important," blah,
blah. Hopefully we'll have GATT progress we can highlight by
that time.
Generally, stress "harmony/kinship with the Australians."
CANBERRA
POTUS SCHEDULE
WED., DEC 4:
--arrival ceremony.
THUR., DEC 5: --Embassy greetings, hosted at Ambassador
Sembler's residence
--luncheon hosted by Prime Minister in Australian
Parliament Building's Great Hall. Toasts after
lunch; PM's toast/speech will be 5-10 mins., intro
POTUS for 3-5 mins. (may have to stretch if PM's
speech is longer).
--15-20 min. remarks to Australian Parliament
--meeting with Australian academic community;
talking points (don't know if we're responsible)
--Australian War Memorial
--Governor General Hayden's State Dinner at the
Government House
--RON Canberra
SITES
1)
Embassy Greetings: The Ambassador's Residence is 50 years
old, as are formal Australian-American diplomatic relations.
The ground lease for the mansion was signed while the
Japanese were bombing Australia. The house was built during
the war, and completed in 1943. Mrs. Roosevelt had a
personal interest here, and came out after the building's
completion to plant a tree.
The current Ambassador to Australia is Mr. Mel Sembler.
Ambassador and Mrs. Sembler are from Treasure Island,
Florida. In addition to the Embassy in Canberra, the U.S.
has three Consulates General in Australia -- one in Sydney,
Melbourne and Perth -- and a Consulate in Brisbane. There
is also a Consular Agent in Adelaide.
2)
Address to Australian Parliament:
The building itself is a striking postmodern palace,
designed by Roman Giurgola, and completed for the Australian
Bicentennial in 1988. The structure incorporates many
symbolic features which strive to reflect certain Australian
values, and resonate with Australian history, geography, and
culture.
For instance, on one side the earth, rather than
meeting the building at a right angle, runs gradually from a
distance and at an angle right up to the buildings peak
flagpole. This design twist represents the accessibility
and accountability of Australian government -- that the
government are subservient to those they serve.
Another example: in the forecourt of the Parliament,
along the walkway POTUS will follow, is a mandelic mosaic
design called "Meeting Place" which represents a meeting
place for all races and cultures. The work also celebrates
Australia's earliest settlers, so it is appropriate that an
Aboriginal artist, Michael Nelson Tjakamara, was asked to
create the centerpiece. It's pointillist strokes are
reminiscent of his tribes sand paintings.
Also neat: one of the original copies of the Magna
Carta is housed in the Parliament building.
POTUS will be greeted by the PM, walk up to the mosaic
in the middle, walk over and shake some Australian hands.
He then goes to lunch (check) in the Great Hall with the
ugly tapestry.
Parliament speech: POTUS starts out, "Thank you, Mr.
Speaker. (Speaker is Leo McLeay. Speech is not
teleprompted. House of Representatives: amphitheater-
like, modern, bathroom-tile-green. NOTE: this will be the
first time a foreign head of state has addressed a joint
session of parliament -- ever (POTUS should stress what a
great honor it is).
VERY IMPORTANT: We were going to do an event with the
Australia/USA Parliamentary Group which has now been cut --
so a specific reference should be included as to who they
are, what they do, kudos. The group is not a standing
committee or anything like that, just an association of
upper and lower house parliamentarians working to promote
US-Australian friendship ties. The group was formed under
the auspices of the Inter-Parliamentary Union, Australian
National Group in May '88. The bipartisan group is the most
active of all Parliamentary Friendship groups. For more
info, contact: Nonda on MP Eamon Lindsay's staff at 077-
724844.
3)
Australian War Memorial: (No remarks, just FYI) Built
roughly in the shape of a Byzantine church, the memorial is
the most popular tourist attraction in the nation's capital.
Event will take place in the rectangular, central
courtyard, which includes a commemorative stone, a pool of
reflection, the Eternal Flame, a commemorative area, and
then, enclosed, the Hall of Memory. The dome inside the
Hall bears a radial pattern which represents the spirits of
the war dead rising towards the central circle (heaven).
The memorial also contains a museum, whose galleries
evoke and explain the Australian experience of war.
Australians in combat: New Zealand (1860), Sudan (1885),
South Africa (1899-1902), China (1900-01), WW1 (1914-18),
WWII (1939-45), Korea (1950-53), Malaya (1950-60), Malaysia
(1963-66), Vietnam (1962-72), Persian Gulf (1991) -- we
might remember that the Aussies responded immediately in the
Gulf, needing no prompting.
Plaque in memorial reads: "The Australian War Memorial
commemorates those 100,000 Australians who have died in war
and recalls the service and sacrifice of all Australians in
wartime.' Also, museum holds a mini-copy of Eugeni
Vouchetich's famous statue, "Beat the swords into
ploughshares.' NOTE: Australian repatriation hospitals are
still treating men wounded in WWI. 496 Australians died in
Viet Nam; 2,398 were wounded.
4)
(no remarks, just FYI) After dinner, when POTUS toasts, the
only thing he says is: "Ladies and Gentlemen, Her Majesty
the Queen of Australia," in response to the Governor
General's "Ladies and Gentlemen, the President of the United
States of America." Hayden is Queen Elizabeth's
representative; there is a such a representative in each of
the 6 Australian states (Australia is a commonwealth).
Governor Generals are Australian citizens; their posts are
purely ceremonial. Hayden is Australia's former Foreign
Minister.
The Government House is an old cattle "station," or
property. It is a simple, classical mansion on the rim of
Lake Burley Griffin.
CONTACTS: --Lew Luchs, Media Counsellor, AmEmbCanberra, 270-5872
--Ray Burson, USIS, (062) 705966
--Marilyn Meyers, DCM, 270-5000
--AmEmbCanberra, after hours, 270-5900
SYDNEY
POTUS SCHEDULE
FRIDAY (DEC. 6th) :
--noon arrival at Sydney airport (QANTAS Jet Base)
--Sydney Convention and Exhibition Centre: 12:30-12:45
pre-lunch reception with South Wales Premier Grenier's
50 guests, 1:00 p.m. State Luncheon with remarks after
remarks and intro by Premier, 15-20 mins., 1,000 quests
--post-lunch reception with Australian American Coral
Sea Commemorative Council
--visit Australian National Maritime Museum, visit
American Gallery, brief remarks in dedication of
museum.
--harbor cruise on John Cadman III to Sydney Opera
House
--press conference at Sydney Opera House
--over to Kirribilli House for dinner?
--RON Sydney
SITES
1)
State Luncheon at Convention Centre: Both anthems played,
grace said, lunch served. After lunch, Premier Grenier
speaks then intros POTUS. Audience will be a cross-section
of the New South Wales Community. Centre is beautiful, yet
modern and antiseptic. Themes focus on our trade, joint
longterm commitments, the global marketplace, the coming
century, thread of education, etc.
If we touch on Asian topics, we might note that, for
more than a year, Australia has taken a leading role in
seeking a comprehensive solution to the Cambodian conflict
under UN auspices.
2)
Australian National Maritime Museum: Present are Prime
Minister and Mrs. Hawke, Chairman and Mrs. Doyle, Premier
and Mrs. Grenier, Ambassador and Mrs. Sembler. The event
serves as the official opening and USA Gallery Dedication.
2-3 min. remarks required, after brief remarks by Prime
Minister.
The building occupies a waterfront site on an arm of
Sydney Harbor, described by Mark Twain as "the darling of
Sydney and the wonder of the world." The sweeping curves of
the museum's white painted roof are reminiscent of waves,
clouds, and sails. It's interior is kind of split-level,
post-modern white. Almost warehouse looking, with hanging
mobiles and high ceilings. Out front, next to the museum's
sign, is a large mobile with fluctuating signal flags, the
kind used for intership communication. In one section is a
model of the Endeavor, presented as a gift by Queen
Elizabeth. The Endeavor was the ship commanded by Captain
Cooke when he discovered Australia. Also, there's a section
with surfboards (joke material?)
The American Gallery was our 1988 bicentennial gift to
Australia. Here, POTUS will unveil a plaque and then
briefly tour the gallery. The opening exhibit is called:
"Linked by the Sea," and that name is carved into the wall.
It explores the similar origins of our two countries. We
might use that as a theme, touching upon how our two
maritime traditions, among many other bonds, help contribute
to our mutual sense of kinship. One of the most powerful
links: The Australian and US navies fought side by side to
turn back the Japanese military advance in WWII. Five
months after the outbreak of war in the Pacific, the Battle
of the Coral Sea in May 1942 was a crucial strategic victory
for the allies, and the first reverse for the Imperial
Japanese Army.
FUN FACTS:
*Australia has a long maritime heritage,
going back at least 50,000 years to the
probable arrival of the first humans from
Asia.
*There were three Americans on board Endeavor
when Cook discovered the east coast of
Australia in 1770 (but they were British
loyalists).
*The first foreign merchant vessel to arrive
in New South Wales was a US ship with a
welcome cargo of rum and other supplies.
*The first person to ride a surfboard in
Australia was a Hawaiian -- Duke Kahanamoku.
****Note: The exhibit houses two periscopes, one of
which is from the same class of submarine as the one which
collected the President after he was shot down in WWII.
More information is on the way via fax.
CONTACTS: --Margaret Eubank, Public Affairs Officer (USIS) 261-
9244
--Consulate General (after hours) 963-1209
--Ian Wilcock, Asst. Sec. Americas Branch, Australian
Dept. of Foreign Affairs and Trade, (06) 261-2711
--John Wade, Sr. Curator, Australian National Maritime
Museum, (02)552-7728
AUSTRALIA COLOR
(among other materials, files include extensive info on above
sites, speech excerpts from American Ambassador Sembler
GENERAL
1)
Australians in film: Errol Flynn, Mel Gibson, Paul Hogan
(one of screenwriters and main actor in "Crocodile Dundee),
Dean Semler (cinematographer of "Dances with Wolves.")
2)
Australians in music: Olivia Newton John, Men At Work, Bee
Gees.
3)
Washington Post cartoonist Patrick Oliphant is from
Australia.
4)
James Tuckey, a lieutenant aboard the ship which took the
first unwilling settlers into Port Phillip Bay (the future
Melbourne) in 1803 wrote:
"I beheld a second Rome rising from a coalition of banditti.
I beheld it giving laws to the world, and superlative in
arms and in arts, looking down with proud superiority upon
the barbarous nations of the northern hemisphere."
5)
Maybe POTUS could do a joke about vegemite, or vegemite
sandwiches. There's potential for humor in the fact that
Australians love the stuff while we think it's yucho. Maybe
at a luncheon, "Despite our many similarities, Americans
have never really developed a taste for your vegemite. In
fact, when I asked about today's menu, I was assured -- no
vegemite. \ Actually, I was worried about the broccoli."
6)
On Australian TV there's a very famous show called, "Skippy
the Bush Kangaroo." Everyone knows about Skippy, he's kind
of equivalent to our Lassie. Maybe a joke about, "I hear
that here in Australia, you have 'Skippy the Bush Kangaroo. I
Well, back home we have 'Millie the Bush Canine. (Tony
Mauro: Millie the Bush Scoobydoo). Or, "I was a little
nervous about playing golf here, what with all the kangaroos
running around. \ Fortunately, I've got Skippy on my side."
7)
In May 1836, President Jackson appointed J.H. Williams as
the first American Consul in Australia. The "Colonist, " a
newspaper of the day, welcomed his arrival, praising America
thus: "Scarcely is there a sea which their ships do not
plough, or a port in which they do not ride " (maybe for
Maritime Museum?)
8)
"The Australians did not seem to me to differ noticeably
from Americans, either in dress, carriage, ways or general
appearance."
--Mark Twain, 1895.
9)
Another link between Australia and the United States during
the 19th century: from 1897-1898, Herbert Hoover, later to
become the 31st U.S. President, worked in Western Australia
as a young mining engineer.
10) "Next to our own nation we place our kindred in America."
--Alfread Deakin, 1905 (Australian statesman?)
11) In September 1918, Australian and American troops fought
alongside each other in the main attack on the Hindenburg
Line which ended World War I, a battle experience to be
shared again in WWII, Korea and Vietnam.
12) In 1969, an Australian radio telescope and an American
antenna brought us the historic television pictures of the
first manned landing on the moon. The picture everyone
remembers -- Neil Armstrong's leg searching for the surface
-- was first seen in a tracking station briefing room near
Canberra. As a compliment to Australia, NASA in 1971 named
Apollo 15 "Endeavor after Captain Cook's Endeavor.
13) Australia's coat of arms consist of a shield containing the
badges of the 6 states. The supporters are native
Australian fauna -- a kangaroo and an emu. A yellow-
flowered native plant, wattle, also appears in the design.
14) Note: Australia taxes capital gains. (Individuals and
companies pay at different rates)
15) Bush has called the Australian-American relationship "an
intimate partnership between two peoples."
16) In the Persian Gulf, the first combined boarding to enforce
UN resolutions was by the USS Brewton and the HMAS Darwin.
17) 300,000 US tourists visit Australia annually.
18) "It will be a very poor day when little Australia won't be
able to summon up its traditional impudence by looking at
the U.S. and saying, 'What do you mean, you big stiff?'"
--Sir Robert Menzies in the Sydney Morning Herald,
27 June 1964. (Possible rejoinder: "Well,
Australia is not all that little, and I hope that
America is not all that stiff." Could be relevant
re. trade disputes)
19) "You must be the most beautiful people in the world."
--Duke Ellington, in the Sydney Morning Herald, 7
Feb. 1970.
20) Every year, America sends a high level delegation to
participate in the Coral Sea Commemoration. Dan Quayle was
here in '89 and Bush was here in '82.
21) Rugby and Cricket are Australian national pastimes. Rugby's
World Cup will be over by the end of October. It will be
the first time an American team has participated.
22) One of the most popular Australian television shows is
called "The Flying Doctor." Joke potential? LA Law is the
most popular American TV show here. The Civil War series
was also very popular.
CANBERRA
1)
American architect Walter Burley Griffin designed
Australia's capital. Griffin was from Chicago; studied
under Frank Lloyd Wright.
2)
Canberra is known as "The Bush Capital." I think there is
joke potential here, e.g. 'I know Australians and Americans
are close, but you didn't have to name your capital after
me.')
3)
Canberra's detractors often refer to the capital as
"Monumentsville," "a city without a mind,' "the city of the
gray flannel mind, " and "a great waste of sheep country."
Canberra's fans call her "the garden city of the
Commonwealth" or "the front window of the nation.' They
also say that "to know Canberra is to love it."
4)
The name "Canberra" comes from "Canberry," an Aboriginal
word meaning "meeting place."
5)
In Canberra, the kangaroos have a habit of falling people's
swimming pools (don't worry, they don't drown) joke
potential?
6)
Australia has the 10 most popular snakes in the world,
starting with the Death Adder.
7)
POTUS visit coincides with the annual advent of fly season.
Aussies are constantly waving off the insects, a gesture so
common it's nicknamed the "Australian Wave." Maybe POTUS
can joke: "Australians have a reputation for warmth and
hospitality. In fact when I got off the plane, I told
Barbara how flattered I was that they were all waving to me.
She said, 'Sorry to burst your bubble, George, but it's fly
season.
8)
Kangaroos abound on tennis courts, golfing greens. Maybe
there's a joke about POTUS asking PM what kind of penalty
you get for hitting a roo.
SYDNEY
1)
In the bay cradled by Darling Harbor stands a little rook
named Fort Denison. It was built in the 1840's to keep
Americans away at a time when the colonists in Sydney were
concerned about possible American aggression springing from
Anglo-American contention. It's a cute, little-known fact,
which reflects the loyalty of the early Australian colony.
2)
During World War II, Japanese submarines actually made it in
to Sydney Harbor. This illustrates what a mortal threat
Japan posed at the time, and provides a sharp contrast with
present relations.
3)
Looking out upon Sydney Harbor, the eye is drawn to the
Pacific horizon. Given our policy themes, we might want to
talk about Australia's "window on the Pacific,"
geographically as well as politically and economically.
3)
Aside from the Sydney Opera House, the Sydney Harbor Bridge
is also considered a famous symbol of the City.
4)
On the state crest of South Wales appear a latin motto that
translated means: "Newly Risen, How Brightly We Shine."
HONOLULU
THEMES:
The stop centers around the 50th Commemoration of Pearl
Harbor. We want to recognize the sacrifice of those
who lost their lives and those who lost their loved
ones on December 7, 1941. Lt. Gen. Fields talked of
creating a realization for the American people that the
attack changed America forever. We went from being an
isolationist nation to an international superpower.
POTUS SCHEDULE
FRI, 12/6:
--evening AF1 to Honolulu
SAT, 12/7:
--7:30 helo to naval base, barge to USS Arizona
for memorial ceremony. Presidential honors, brief
remarks by Admiral Larson, Rear Admiral White,
Moment of Silence, ship whistle, missing man
flyover, national anthem, flag raising, 5 min.
remarks.
--8:20 depart for K-8 (Kilo 8, it's like a pier),
honors arrival, Joo intros POTUS, remarks 15-20
mins.
--9:00 depart for Hickam AFB, proceed to Kenney
Conference room for brief remarks to Asian
Ambassadors (in Honolulu attending annual meeting
of Chiefs of Missions Conference).
--depart Honolulu
SITES
1)
USS Arizona: The memorial itself is a bier-like structure,
white, with open windows on the sky. Supported above the
water, it straddles the midsection of the sunken Arizona,
whose bow and stern are marked by buoys. Toward the back of
the memorial is a chapel-like enclosure housing a wall with
all the names of Arizona's drowned. POTUS's back will be to
this wall, in front of him is a cutaway section in the
memorial's floor, where one can peer down on the submerged
starboard.
Remarks here are brief, as they are part of a larger,
hour-long ceremony. Here, as in the longer speech,
acknowledgments are key: both sites are far too small to
accommodate the vast number of veterans, families, and
guests. POTUS will be introduced by a survivor.
Acknowledgements should be handled with care to make sure
that no group (particular ship vets, vet organizations,
etc.) are slighted.
In particular, while the memorial is for the Arizona,
mentions should be made of USS Utah. The two downed ships
are the only that have people entombed in them (1, 177 went
down with the Arizona, 58 went down with the Utah). Also,
while the longer speech contains a more general Pearl Harbor
focus, the memorial speech should be more specific to those
who went down with the Arizona and other ships, more of a
naval aspect.
Notes on the Arizona:
*One-third of all those who died at Pearl Harbor went down
with the Arizona.
*USS Arizona is still commissioned.
*USS Nevada, there during the attack, will be in port to
take part in the ceremony.
*Over 34 sets of brothers were killed on the Arizona.
*While I was there, I saw old women throwing leis in the
water; they were crying. I'm told Japanese visitors also
make their own pilgrimage to give leis.
*There is still oil leaking from the wreck; its viscous
iridescence coats the water under and around the memorial.
*In the same harbor as the memorial is the Bowfin -- the
sister submarine to the one that picked up POTUS when shot
down.
*It's possible that commemoration will include the same
vintage plane that POTUS flew in WWII.
*Sec. Cheney might take part in the day's events.
To come: I'm having faxed extensive detail on the memorial,
a history of the attack, letters sent by those aboard
Arizona shortly before it was bombed, letters written by
family members of the fallen, letters written by contrite
Japanese, survivor quotes on reconciliation, and more.
Research: get book, The Day of Infamy. Also, look for
recent Approach magazine with Bush on cover; it has a
detailed description of his involvement in WWII.
2)
Major speech at K-8: Kilo 8 is a fairly nondescript pier,
though apparently they' 11 fix it up for the commemoration.
These longer remarks will be teleprompted. POTUS will be
speaking with his back to the water, historical battleship
row, and then Ford Island. Behind his right shoulder is the
Arizona, behind his left, the Missouri. Note: look at
above, Arizona info for color, etc.
3)
Remarks to Asian Ambassadors: Conference room within AFB
administrative building. Building exterior retains strafed
pocks of Japanese attack. Remarks are kind of wrap up of
themes and policy objectives of whole Asia swing. Asst.
Secretary for East Asia Solomon is the host of the
ambassadors, but he probably won't be in on meeting.
Remarks are brief; wouldn't be surprised if talking points
get substituted.
ECONOMIC THEMES FOR THE PRESIDENT'S TRIP TO ASIA
Both the U.S. and Asia benefit from free trade and open markets:
Our economic relationship is not a zero-sum game for either
partner.
The American economy and American jobs increasingly depend
on free trade and open markets.
-
In the United States, nearly half (49%) of our GNP
growth between 1985 and 1990 was attributable to
exports.
-
In 1991, U.S. will export close to $700 billion worth
of merchandise and services.
-
Record 7.2 million jobs were supported directly and
indirectly by U.S. merchandise exports alone in 1990.
-
More than 19,000 jobs are supported per billion
dollars of U.S. exports.
Asia's stake in the trading system is greater than ours.
The export strength and economic growth of Asian economies
will continue to be dependent upon open international
markets for goods, services, and investment.
-
Asian economies are relatively more dependent than the
U.S. economy on exports and imports.
-
In 1990, exports amounted to 32% of GNP in Korea and
15% of GNP in Japan; by comparison, U.S. figure is 10%.
If the open trading system cannot be preserved and expanded
in the Uruguay Round, Asia's prosperity could be jeopardized
by stagnant world trade.
Asia is increasingly important to the U.S. economy:
The United States is a Pacific power, with vital economic,
as well as political, interests in the region.
Asia is an important and growing market for U.S. exports and
a source of U.S. job creation.
-
Japan (#2), Korea (#6), and Taiwan (#9) were among top
10 markets for U.S. exports in 1990.
-
In 1990, U.S. manufacturers sold $115 billion of goods
in the Asia-Pacific region (29% of total U.S. exports) ;
by comparison, $113 billion in goods were sold in
Western Europe.
- 2 -
-
Exports to Japan and the four Asian NIE's alone support
an estimated 1.7 million U.S. jobs.
Trade with Asia accounts for large and growing proportion of
total U.S. trade.
-
In 1980, U.S.-Asia trade accounted for 24% of total
U.S. trade (imports and exports). By 1990, Asia
accounted for 34% of total trade.
Asia is also a large consumer of U.S. services, including
financial services, an area in which the United States has
special expertise.
-
In 1990, U.S. sold $22.9 billion in services to Japan
and Australia alone.
The westward shift of U.S. population, immigration patterns,
and increased cultural diversity in the United States point
to ever closer economic relations with Asia and the Pacific.
-
The U.S. population is increasingly concentrated in the
Western states (21.2% of total U.S. population in
1990).
-
A large and increasing share of U.S. GNP is produced in
the Western states.
-
Asians represent growing share of U.S. population (6.9
million in 1990 or 2.8% of total vs. 1.6% in 1980) and
growing share of U.S. immigration.
Asia needs our exports:
O
Asia's demand for imports -- our exports -- will increase as
Asian economies grow wealthier.
Asian consumers need access to foreign goods and services if
they are to raise their standard of living and enjoy the
fruits of their labors.
-
Japanese Prime Minister Miyazawa, for example, recently
stated that Japan should become a "lifestyle
superpower". This will benefit our economy by
increasing opportunities for U.S. exporters.
Asian countries have cooperated with the U.S.:
The U.S.-Asia relationship helps reinforce global
cooperation for the benefit of citizens of all nations.
Several Asian nations helped shoulder the economic burden of
- 3 -
the international effort to counter Iraq's aggression.
-
$10.4 billion was committed by Japan ($10.0 billion)
and Korea ($355 million) to offset U.S. military costs
of Operation Desert Storm.
-
$2.8 billion in economic assistance was committed by
Australia ($14 million), Japan ($2.7 billion), and
Korea ($115 million) to ease impact of Gulf Crisis on
the frontline states in the Middle East (Egupt, Turkey,
and Jordan).
In the G-7 and Economic Summit fora, Japan has helped foster
sustainable world growth with low inflation.
Japan has also supported U.S. initiatives to resolve the
international debt problems of the developing nations. For
example:
-
It pledged $500 million for the Multilateral Investment
Fund (MIF) for Latin America, one third of total MIF
funding.
-
Japan contributed almost $500 million to international
efforts to clear the arrears owed by Panama, Nicaragua,
and Panama to the international financial institutions.
Asian countries have helped the U.S. in efforts to
strengthen market forces in Eastern Europe and in developing
countries. This will help open up these economies for U.S.
trade and investment.
Treasury Department
December 10, 1991
KOREA
FINANCIAL SERVICES
The Korean financial system is antiquated, over-regulated,
and ill-suited to the needs of Korea's dynamic economy.
U.S. banks and securities firms face numerous barriers to
entering and operating in the Korean market.
In addition, elimination of Korea's pervasive controls over
interest rates, credit allocation, and capital flows is
essential if U.S. financial institutions are to enjoy long-
term competitiveness in Korea, and U.S. businesses are to
find adequate funding sources.
The Treasury Department and Korean Ministry of Finance have
made some progress in bilateral talks in addressing both
specific national treatment issues and broader financial
liberalization. However, much work remains to be done.
The USG has also sought Korean cooperation in bringing about
a strong financial services agreement in the Uruguay Round;
Korea's support thus far has been very disappointing.
Our specific objectives for the President's trip include:
-
A public statement by the ROKG of its commitment to
financial liberalization, including support for a
strong Uruguay Round financial services agreement.
-
Issuance of a comprehensive blueprint for financial
market liberalization, with a clear timetable for
implementation.
-
Implementation of a commitment last spring to ease
restrictions on deferred payment terms for imports by
the end of 1991.
Treasury Department
December 10, 1991
DECLASSIFIED
Department of State Guidelines
E.O. 12958, SEC 3.4 (B), July 21, 1997
By
NARA, Date
JAPAN
ECONOMIC THEMES
The U.S. and Japan have the single most important
bilateral economic relationship in the world.
-
With the world's two largest economies, their
actions impact many other nations, as well.
Despite disputes over trade issues, Japan has
cooperated closely with the U.S. (e.g. in the Economic
Summit and G-7 framework) to foster sustainable world
growth with low inflation, and has been very supportive
of a number of U.S. initiatives, including resolving
the debt crisis in developing countries.
However, a number of contentious economic issues in the
area of trade, financial services, and investment
plague the bilateral relationship, despite continuous
bilateral consultations.
Uruguay Round:
Agriculture is the key to compromise; Japanese need to
show leadership and contribute to a successful
conclusion.
Also need liberalization in financial services area.
Japan's External Surpluses:
We are concerned about Japan's rising current account
surplus
-
Surplus is expected to rise from $36 billion in 1990 to
$68 billion in 1991, according to the IMF). This
imbalance can disturb financial markets and feed
protectionism.
Although the U.S. trade deficit with Japan fell from a
peak of $57 billion in 1987 to about $42 billion last
year, it is beginning to increase again and still
accounted for two-thirds of the overall U.S. trade
deficit through September, 1991.
This highlights need for Japanese to maintain economic
growth and open markets.
Export Dependency and Bilateral Trade:
Although both the U.S. and Japan have major stakes in
preserving the open trading system, Japan is somewhat
more dependent on exports than the U.S.
- 2 -
-
Japan's exports of goods and services accounted
for 15 percent of GNP in 1990. For the U.S., the
figure was 10 percent.
-
The U.S. is Japan's most important market,
accounting for almost 32% of Japan's exports and
almost 22% of Japan's imports in 1990.
-
Japan is the U.S.' second most important market,
accounting for 12% of U.S. exports and 18% of U.S.
imports in 1990.
-
In finance-related service transactions (royalties
and license fees, financial services and
insurance) the U.S. has a surplus with Japan.
U.S. receipts amounted to $4.0 billion in 1990,
compared to payments of $1.4 billion.
Foreign Investment:
The U.S. market is far more open to foreign direct
investment than Japan's. This has fed Congressional
and popular concern in the U.S.
Cumulative direct investment inflows into the U.S. during
the period 1981-90 amounted to $355 billion ($80 billion
from Japan alone), compared with only $6 billion in the same
ten year period into Japan from all sources.
-
During the period 1981-90, cumulative foreign
direct investment in the U.S. represented about
5.7% of total U.S. fixed investment. In Japan,
the equivalent number was 0.1%, a difference of
more than 50:1.
Exchange Rate:
o
Yen/dollar rate has been quite stable since October
1991 G-7 Ministers meeting.
U.S. believes rates in G-7 countries are consistent
with balance of payments adjustment needs and
underlying economic fundamentals.
Japanese Financial Markets:
Despite U.S. efforts to open up Japan's financial
markets, Japanese banks are far more important in the
U.S. than U.S. banks in Japan. Japanese banks in the
U.S. hold 11% of U.S. banking assets; U.S. banks in
Japan hold less than 1% of Japanese bank assets.
- 3 -
We have been negotiating with the Japanese since 1984
to liberalize financial markets. Significant progess
has been achieved, but more needs to be done.
Recent financial scandals are symptomatic of the continued
lack of transparency and competition in the Japanese market.
Japan needs to take steps to reform its system and restore
international confidence.
Structural Impediments Initiative (SII) :
SII represents an important initiative to reduce
impediments to competition and adjustment of external
imbalances. SII success can help to head off
protectionism.
-
For example, U.S. has urged Japan to: increase
public infrastructure investment to improve
economic well being; reduce monopolistic effects
of keiretsu business practices; and open up
distribution system to imports,
Some progress has been achieved, but it is essential
that we re-energize the SII process by introducing new
commitments on both sides.
Treasury Department
December 10, 1991
AUSTRALIA
ECONOMIC THEMES
Australia has been an invaluable negotiating partner in the
Uruguay Round, especially on agricultural issues like the
CAP.
Facing its fourth year of declining agricultural income,
Australia has pressed the U.S. on farm issues:
-
It has complained about U.S. subsidized wheat sales, is
unhappy with having to negotiate with the U.S. a
voluntary restraint agreement on beef, and is concerned
about a 34% cut in its sugar import quota due to
increased U.S. production.
Australia's financial markets have been relatively closed to
foreign entry. However, under reforms recommended to
Parliament in November, foreign banks would be allowed
easier entry and operation.
Treasury Department
December 10, 1991
SINGAPORE
FINANCIAL SERVICES
Singapore is an important offshore financial center, and
maintains a relatively open market for foreign firms.
However, U.S. firms face discrimination in the significantly
smaller domestic market.
The U.S. seeks Singapore's support for a strong financial
services agreement in the Uruguay Round. At a minimum, the
U.S. would like to see Singapore stop blocking progress and
play a more constructive leadership role.
-
The lack of support from Singapore and the other ASEAN
countries for a strong financial services agreement in
the Uruguay Round has been very disappointing.
In the bilateral financial services negotiations, the U.S.
seeks a commitment from Singapore for a level local playing
field in both the banking and securities sectors.
Treasury Department
December 10, 1991
SII - U.S. Commitments
Issue:
GOJ officials have criticized the USG for not following
through on as many of its commitments as the GOJ has done. By
their count, Japan has completed 80 percent of its commitments,
while the USG has completed 20 percent, at best.
Suggested Talking Points:
--
What matters most in SII is the significance of the
undertakings, not the quantity.
The U.S. deserves credit for making substantial progress on
its commitments, which, in many respects, have been more
difficult politically than those that Japan has undertaken.
There is an asymmetry to U.S. and Japanese undertakings. In
many cases, Japan is being asked to open up its economy and
improve the lifestyle of its people, while the U.S. is
trying to cut public expenditures to reduce its budget
deficit and stave off protectionist pressure to close the
U.S. market.
The GOJ may have passed a larger number of pieces of SII
legislation than in the U.S., but the U.S. has resisted a
larger number of protectionist and budget-busting bills than
Japan.
In both countries, we are trying to deal with ingrained
structural problems in a way which will have a lasting
effect, even if it takes some time for their effects to be
felt.
--
The two most important efforts by the United States include:
o
undertaking major budget reforms, which are holding the
line on deficit spending, even in a difficult recession
year;
-
This package included tax increases that were
undertaken at great political cost, and an even
tighter rein on discretionary spending.
-
We haven't seen a sustained reduction in the
deficit numbers yet; nor has Japan in its trade
numbers. The U.S. budget deficit will come down,
though, and the reduction will be lasting.
-
In comparison, the parallel Japanese commitment to
increase public infrastructure spending benefits
numerous Japanese constituencies and is
politically popular.
2
vigorously defending open investment policy;
-
Administration has maintained its open investment
policy in the face of numerous protectionist
proposals and growing mood of isolationism.
-
In contrast, Japan's commitments are aimed at
opening its markets, with benefits for the
consumer.
[May wish to note Presidential Statement
strongly reaffirming open investment policy,
if released.]
--
In addition, U.S. has taken a number of other measures:
O
intensified export promotion efforts, with a particular
focus on Japan;
O
embarked on an ambitious program to improve workforce
education and training;
-
In April 1991, President Bush outlined strategy to
achieve national education goals, called "America
2000," which involves major reforms to primary and
secondary education system.
increased Federal support for research and development
efforts;
-- The FY 1992 budget proposed to allocate about $76
billion for R&D in 1992, an increase of over $8
billion, or 13 percent over 1991 levels. This is
the highest level ever.
and
O
continued to work toward strengthening incentives for
private saving and long-term investment (e.g.,
reduction of capital gains tax; enhanced IRAs; Family
Savings Accounts), despite strong political resistance.
-- U.S. intends to intensify these efforts.
12/9/91
Treasury
THEMES FOR ASIA TRIP
Overall
--
America is an Asia-Pacific partner for the long haul
(America will not retreat into isolationism/protectionism)
--
Economically
--
Politically
-- Security
--
As outlined in the President's Asia Society speech, there
are six keys to America's long-term vision for the Asia
Pacific. The trip will highlight each of these:
I.
PROGRESSIVE TRADE LIBERALIZATION
--
Aggressively pursue Uruguay Round Settlement (if still
pending) (Japan, Korea, Australia)
--
Promote APEC (All countries)
--
Push access for American products and services (Japan,
Korea)
Encourage American investment in the region (Singapore,
Japan, Korea)
II. SECURITY COOPERATION
--
Maintain pressure on DPRK nuclear program. Stress need for
united action against DPRK nuclear program (all countries;
encourage Singapore to get ASEAN action during upcoming
ASEAN Summit)
--
U.S. will restructure, but remain engaged
--
Continued air and naval presence at current levels in
Japan for the foreseeable future
--
Korea presence dependent on progress for lasting peace
on the peninsula; however, envision long-term air
presence for regional deterrence into the future
--
Singapore agreement as model for access arrangements of
the future in other parts of the region
III. A SHARED COMMITMENT TO DEMOCRACY AND HUMAN RIGHTS
Continue pressure on ROK (last visit by Pres. Bush made a
difference)
--
Lay out position on Vietnam (Singapore)
Highlight China if necessary
2
IV EDUCATIONAL AND SCIENTIFIC INNOVATION
--
Show link between domestic agenda and foreign policy
-- Highlight S&T progress (all countries)
-- Examine educational differences that we can learn from
(Japan, Korea)
V
RESPECT FOR THE ENVIRONMENT
-- Note progress made and areas for improvement (Japan, Korea)
-- Announce SE Asia initiative (if ready)
VI APPRECIATION OF DISTINCT CULTURAL HERITAGES
--
Announce various cultural exchange initiatives (all
countries)