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JGR/Trade (6 of 6)
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John Roberts' Subject Files
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Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual collections.
Collection: Roberts, John G.: Files
Folder Title: JGR/Trade (6 of 6)
Box: 55
To see more digitized collections visit:
https://reaganlibrary.gov/archives/digital-library
To see all Ronald Reagan Presidential Library inventories visit:
https://reaganlibrary.gov/document-collection
Contact a reference archivist at: [email protected]
Citation Guidelines: https://reaganlibrary.gov/citing
National Archives Catalogue: https://catalog.archives.gov/
THE WHITE HOUSE
WASHINGTON
December 30, 1985
MEMORANDUM FOR FRED F. FIELDING
FROM:
JOHN G. ROBERTS
SUBJECT:
Japan/U.S. Trade
Senator Bradley has written Mr. Regan to complain about the
Justice Department filings as amicus curiae in Matsushita V.
Zenith, which was argued before the Supreme Court on
November 12. You may recall that the Chairman of Zenith
wrote Mr. Regan with the same complaint in October. A copy
of the memorandum I wrote for you at that time, summarizing
the case and the position of the Solicitor General, is
attached for your information.
I see no reason to debate Justice's position with Bradley; I
would leave that to Justice, if anyone. A standard "pending
litigation" response is attached for your signature, as is a
brief memorandum for Regan, explaining the proposed response.
Attachment
THE WHITE HOUSE
WASHINGTON
December 30, 1985
MEMORANDUM FOR DONALD T. REGAN
CHIEF OF STAFF
FROM:
FRED F. FIELDING
COUNSEL TO THE PRESIDENT
SUBJECT:
Japan/U.S. Trade
You have asked for m views or a response to the attached
letter from Senator Bradley to you, complaining about the
position taken by the Solicitor General as amicus curiae in
Matsushita v. Zenith. In that case, the Solicitor General
argued that certain Japanese television manufacturers should
not have been subject to a private antitrust suit, because
the challenged conduct was compelled by the Japanese govern-
ment. This "sovereign compulsion defense" is available in
private antitrust suits, but not in suits brought by the
United States.
It is our usual policy to avoid discussing the merits of
particular cases involving the United States that are
pending before the Supreme Court. The positions of the
Government in such cases are formulated by the Department of
Justice, and the arguments are articulated in the briefs.
Our policy of avoiding discussion of particular pending
cases helps preserve public confidence in the impartial
administration of the laws, provides some distance when, for
legal reasons, Justice must take politically unpalatable
positions, and avoids jeopardizing the normal litigation
process. A copy of a proposed reply to Senator Bradley, for
my signature, is attached.
Attachment
FFF:JGR:aea 12/30/85
CC: FFFielding
JGRoberts
Subj
Chron
THE WHITE HOUSE
WASHINGTON
December 30, 1985
MEMORANDUM FOR D. LOWELL JENSEN
DEPUTY ATTORNEY GENERAL
U.S. DEPARTMENT OF JUSTICE
FROM:
FRED F. FIELDING
COUNSEL TO THE PRESIDENT
SUBJECT:
Japan/U.S. Trade
The attached correspondence from Senator Bradley, objecting
to the Department's filing as amicus curiae in Matsushita v.
Zenith, is forwarded for whatever consideration and response
you deem appropriate. I have also attached a copy of my
reply to Bradley.
Many thanks.
Attachments
FFF:JGR:aea 12/30/85
CC: FFFielding
JGRoberts
Subj
Chron
THE WHITE HOUSE
WASHINGTON
December 30, 1985
Dear Senator Bradley:
Thank you for your recent letter to White House Chief of
Staff Don Regan. In that letter you objected to the amicus
curiae brief filed by the Department of Justice in Matsushita
Electric Industrial Co., Ltd. V. Zenith Radio Corporation.
That case was recently argued before the Supreme Court of
the United States, and is currently awaiting decision.
It is the general policy of the White House not to discuss
the merits of litigation pending before the Supreme Court
involving the United States. The views of the
Administration in such cases are formulated and presented by
the Department of Justice, in the briefs filed by that
Department in the course of the litigation.
I have, however, taken the liberty of referring your
correspondence to the Department of Justice, so that
the Department will have the benefit of your views.
Sincerely,
Fred F. Fielding
Counsel to the President
The Honorable Bill Bradley
United States Senate
Washington, D.C. 20510
FFF:JGR:aea 12/30/85
bcc: FFFielding
JGRoberts
Subj
Chron
ID # 369021
WHITE HOUSE
CORRESPONDENCE TRACKING WORKSHEET
o OUTGOING
H INTERNAL
JR-
I - INCOMING
Date Correspondence
Received (YY/MM/DD)
/
/
Name of Correspondent: Senator Bill Bradley
MI Mail Report
User Codes: (A)
(B)
(C)
Subject:
Japan / US Trade
ROUTE TO:
ACTION
DISPOSITION
Tracking
Type
Completion
Action
Date
of
Date
Office/Agency
(Staff Name)
Code
YY/MM/DD
Response
Code
YY/MM/DD
TR
CSREGA
ORIGINATOR
85/12/04
C 85/12/04
TUFIEL
Referral Note:
A 85/12/04
/ /
Referral Note:
WAT18
See Mr. Regan's note
Di 8512106
585112116
CJ
Referral Note:
/ /
/ /
-
Referral Note:
/ /
/ /
-
Referral Note:
ACTION CODES:
DISPOSITION CODES:
A- - Appropriate Action
I - Info Copy Only/No Action Necessary
A Answered
C Completed
C . Comment/Recommendation
R - - Direct Reply w/Copy
B - - Non-Special Referral
S Suspended
D . Draft Response
S - For Signature
F - - Furnish Fact Sheet
X Interim Reply
to be used as Enclosure
FOR OUTGOING CORRESPONDENCE:
Type of Response = Initials of Signer
Code = "A"
Completion Date = Date of Outgoing
Comments:
Keep this worksheet attached to the original incoming letter.
Send all routing updates to Central Reference (Room 75, OEOB).
Always return completed correspondence record to Central Files.
Refer questions about the correspondence tracking system to Central Reference, ext. 2590.
5/81
COMMITTEES
BILL BRADLEY
FINANCE
NEW JERSEY
ENERGY AND
NATURAL RESOURCES
United States Senate
SPECIAL COMMITTEE ON
AGING
WASHINGTON, DC 20510
SELECT COMMITTEE
ON INTELLIGENCE
November 26, 1985
369021
Honorable Donald T. Regan
Chief of Staff to the President
The White House
Washington, DC 20500
Dear Mr. Regan:
The Justice Department has submitted two friend-of-the-
court briefs to The Supreme Court in the case of Matsushita
Electric Industrial Company, Ltd., et al., VS Zenith Radio
Corporation and National Union Electric Corporation. The
briefs argue that the Administration has an interest in
assuring that the enforcement of federal laws does not
unnecessarily harm international relations; that the Japanese
companies accused of anti-trust and dumping violations were
compelled to cooperate by the Japanese Ministry of Internal
Trade and Industry; and that compelled conduct may not serve
as a predicate for anti-trust liability. In view of the fact
that Administration intervention in this case is inconsistent
with U.S. policy promoting mutually beneficial trade between
the U.S. and Japan in accordance with international
agreements, I urge the Justice Department to withdraw its
briefs.
At a time when frustration with unfair foreign trade
practices threatens further U.S. participation in an open
international trading system, it is inappropriate and
misguided to remove legal remedies to practices that violate
the principles of open trade embodied in the GATT and in U.S.
trade law. U.S. industry increasingly perceives that foreign
businesses enjoy exemptions from rules governing domestic
commerce at a time when imports are overwhelming
traditionally strong U.S. sectors. Unless we eliminate those
perceived exemptions, industry will conclude that our trade
deficit is a result of unfair foreign trade practices to
which we are unable to respond. Such a conclusion will
strengthen industrial sentiment to reverse U.S. policy
pursuing open trade.
I look forward to hearing from you on this issue.
Sincerely,
An hody Bill Bradley
BB/daj
THE WHITE HOUSE
WASHINGTON
January 7, 1986
MEMORANDUM FOR DAVID L. CHEW
STAFF SECRETARY
FROM:
ASSOCIATE COUNSEL JH TO THE PRESIDENT
JOHN G. ROBERTS
SUBJECT:
Presidential Determination
Regarding Japanese Leather
This determination should not go forward in its present
form. The determination announces acceptance of compen-
sation from Japan, and the withdrawal of concessions on
Japanese products. The significance of the latter is that
it permits an increase in tariffs on certain Japanese goods.
This increase must be effected by Presidential proclamation.
The determination and proclamation should be simultaneously
issued. I have discussed this with USTR, which agrees and
which will submit a new package, a combined determination
and proclamation, within a few days.
ID #
CU
WHITE HOUSE
CORRESPONDENCE TRACKING WORKSHEET
0 OUTGOING
H INTERNAL
I . INCOMING
Date Correspondence
Received (YY/MM/DD)
/
/
Name of Correspondent:
David Chew
M1 Mall Report
User Codes: (A)
(B)
(C)
Subject:
Presidential Determination re: Japanese
heather
ROUTE TO:
ACTION
DISPOSITION
Tracking
Type
Completion
Action
Date
of
Date
Diffice/Agency
(Staff Name)
Code
YY/MM/DD
Response
Code
YY/MM/DD
CUHOLL
ORIGINATOR 86/01/06
/
/
Referral Note:
CUAT 18
S
86/0/106
s 86/0/107
Referral Note:
C.O.B.
/ /
/ /
I
Referral Note:
/ /
/ /
Referral Note:
/ /
/ /
Referral Note:
ACTION CODES:
DISPOSITION CODES:
A Appropriate Action
I Into Copy Only Action Necessary
A Answered
C Completed
C . Comment/Recoremendation
R Direct Reply w/Copy
8 Non-Special Referral
s
D Draft Response
S For Signature
F Furnish Fact Sheet
X Interim Reply
to be used as Enclose
FOR DUTEDING CORBESPONDENCE
Type of Response - Initials of Signer
Code = "M"
Completion Date * Date of Outgoleg
Comments:
Keep this worksheet attached to the original incoming letter.
Send all routing updates to Central Reference (Room 75, OEOB).
Always return completed correspondence record to Central Files.
Refer questions about the correspondence tracking system to Central Reference, ext. 2590.
5/81
Document No.
WHITE HOUSE STAFFING MEMORANDUM
DATE: 1/6/86
ACTION/CONCURRENCE/COMMENT DUE BY: C.O.B. 1/7/86
SUBJECT: PRESIDENTIAL DETERMINATION RE JAPANESE LEATHER
ACTION FYI
ACTION FYI
VICE PRESIDENT
OGLESBY
REGAN
POINDEXTER
MILLER
RYAN
BUCHANAN
SPEAKES
CHAVEZ
SPRINKEL
CHEW
P
SS STEELMAN
DANIELS
SVAHN
FIELDING
THOMAS
HENKEL
TUTTLE
HICKS
CLERK
KINGON
LACY
REMARKS:
Please provide any comments/recommendations by close of
business on Tuesday, January 7th. Thanks.
RESPONSE:
David L. Chew
Staff Secretary
THE UNITED STATES TRADE REPRESENTATIVE
WASHINGTON
20506
December 24, 1985
MEMORANDUM TO THE PRESIDENT
From:
Ambassador Clayton Yeutter
Subject: Presidential Determination to Impose Specified
Tariff Increases
Mr. President, on November 21 the Economic Policy Council sent
you a memorandum recommending specified tariff increases against
Japan if we were unable to reach a satisfactory settlement
by December 1 concerning its unfair trade practices on leather and
leather footwear. Through intensive negotiations, we have
settled this dispute. Our agreement is for Japan to provide $236
million of compensation, and for the United States to withdraw
$24 million of trade concessions. The trade concessions we will
withdraw are on Japanese imports into the United States of the
products on which Japan maintains the import quotas that were the
subject of our case. Therefore, attached for your signature
is a Presidential Determination reflecting this decision to
increase tariffs.
Following this Determination, we will transmit a Presidential
Proclamation to implement the withdrawal of concessions.
THE WHITE HOUSE
WASHINGTON
MEMORANDUM FOR THE UNITED STATES TRADE REPRESENTATIVE
SUBJECT:
Determination under Section 301 of the
Trade Act of 1974
Pursuant to Section 301 (a) of the Trade Act of 1974, as
amended (19 U.S.C. 2411 (a)), I have determined to accept
compensation from the Government of Japan and also to withdraw
certain concessions in order to resolve this case. In that
regard, I have determined that the global quotas maintained by
the Government of Japan on imports of leather and leather
footwear deny benefits to the United States arising under the
General Agreement on Tariffs and Trade (GATT), are unreason-
able and constitute a burden and restriction on U.S. commerce.
I will therefore accept compensation to restore the balance
7
for the major portion of this case and proclaim an increase in
duties on imports from Japan.
Reasons for Determination
In 1973, the United States initiated a Section 301 investiga-
tion after receiving a petition from the U.S. Tanners Council
alleging that Japanese tariffs, quotas and administrative
practices concerning leather imports effectively denied U.S.
exporters access to the Japanese market. After bilateral
discussions with the Japanese Government failed, the United
States requested formation of a panel under Article XXIII of
the General Agreement on Tariffs and Trade (GATT) and threat-
ened preemptive retaliation. In early 1979, we reached an
agreement with Japan in which Japan promised to: (1) give
U.S. exporters a specified number of quota licenses;
(2) provide the names of the quota holders, and (3) expand the
quota on wet blue, finished and upholstery leather. We
believed at that time that these measures would improve our
access to the Japanese market. In 1982, however, the
United States refused to extend the agreement. We noted that
the U.S. industry was still unable to penetrate the Japanese
market because of the lack of transparency of the Japanese
administrative system, the deterrence imposed by the very low
level of quotas to the significant marketing efforts by U.S.
firms, and the high leather tariffs. Instead, we reinstituted
our GATT complaint.
2
In 1984 a GATT panel found that Japan had violated Article XI
of the GATT. The panel further determined that the illegal
quota had damaged U.S. exports. Subsequent to the adoption of
the GATT panel report, the Japanese Government: (1) reduced
the tariff on semi-finished leather to zero; (2) promised to
liberalize the allocation of the quota on semi-finished
leather; and (3) agreed to publish the level of the quota on a
regular basis. The tariff reduction on semi-finished leather
imports has been of modest value to the U.S. industry, because
it affects only a miniscule portion of their exports to Japan.
Additionally, the publication of the level of the quota, while
useful information, has not aided U.S. leather exporters in
increasing their sales. U.S. exporters remain substantially
excluded from the Japanese market and there is no prospect
that this situation will change in the foreseeable future.
In December 1982, we initiated a Section 301 investigation
based on a petition filed by the Footwear Industries of
America, et al which included allegations that the quota and
administrative practices maintained by the Government of Japan
with respect to leather footwear imports effectively denied
U.S. footwear exporters access to the Japanese market.
Although there has been no GATT panel finding with respect to
the leather footwear quota, it is identical to the leather
quota which has been found by a GATT panel to be inconsistent
with Article XI of the GATT. The Japanese have taken no steps
to liberalize or eliminate the footwear quota.
On September 7, 1985, I announced that I would take counter-
measures against Japan unless a satisfactory settlement of our
complaint was reached by December 1, 1985.
On September 23, 1985, the Government of Japan notified the
GATT Secretariat of its intention to enter into negotiations
pursuant to Article XXVIII:5 of the GATT in order to modify or
withdraw its tariff concessions on leather and leather foot-
wear imports. The Government of Japan has notified the GATT
of its intent to enter Into Article XXVIII:5 negotiations so
that it can remove its global quotas on leather and leather
footwear imports and replace the quotas with new tariff
measures.
The United States has agreed to accept $236 million of
compensation and will withdraw $24 million of trade
concessions that together will satisfy the United States fully
for trade damage caused by import restrictions on leather and
leather footwear. The settlement involves tariff reductions
on $2.3 billion worth of U.S. exports to Japan in 1984. The
settlement W1 1 increase opportunities for American producers
to sell products in Japan. This is far preferable to
protectionist measures that would restrict imports without
increasing U.S. exports.
This determination shall be published in the Federal Register.