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Case Number: 2010-1024-F FOIA MARKER This is not a textual record. This is used as an administrative marker by the Clinton Presidential Library Staff. Folder Title: China (April to August 1999, Post Zhu Visit) [4] Staff Office-Individual: National Economic Council-Lee, Malcolm Original OA/ID Number: CF 1176 Row: Section: Shelf: Position: Stack: 23 5 5 3 V Withdrawal/Redaction Sheet Clinton Library DOCUMENT NO. SUBJECT/TITLE DATE RESTRICTION AND TYPE 001. email Malcolm Lee to Melissa Green, Sharon Yuan, Gene Sperling, and Lael 04/15/1999 P1/b(1) Brainard. Subject: For Podesta. (2 pages) COLLECTION: Clinton Presidential Records National Economic Council Malcolm Lee OA/Box Number: CF 1176 FOLDER TITLE: China ( April to August 1999, Post Zhu Visit) [4] 2010-1024-F vz1932 RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P1 National Security Classified Information |(a)(1) of the PRAJ b(1) National security classified information [(b)(1) of the FOIA| P2 Relating to the appointment to Federal office [(a)(2) of the PRA| b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA] an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute ((b)(3) of the FOIA) financial information [(a)(4) of the PRA| b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors |a)(5) of the PRA} b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy |(b)(6) of the FOIA] personal privacy |(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed b(8) Release would disclose information concerning the regulation of of gift. financial institutions [(b)(8) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(9) Release would disclose geological or geophysical information 2201(3). concerning wells [(b)(9) of the FOIA] RR. Document will be reviewed upon request. CHINA WTO - HOUSE Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 Abercrombie, Neil (D, HI) Y N N N Ackerman, Gary (D, NY) Y N Y Y Silk textiles, IPR, generally pro-trade Aderholt, Robert (R, AL) N/A N/A N N human rights, political persecution, opposes Administration China policy Allen, Tom (D, ME) N/A N/A Y Y Andrews, Robert (D, NJ) N N Y Y IPR, supportive of Taiwan Archer, Bill (R, TX) W&M Y Y Y Y pro-trade Armey, Dick (R, TX) Y Y Y Y generally pro-trade Bachus, Spencer (R, AL) Y Y Y Y travelled to China in 96 - says it helped understand issues Baird, Brian (D, WA) N/A N/A N/A N/A Baker, Richard (R, LA) Y Y Y Y Baldacci, John (D, ME) N/A N/A Y Y human rights, potatoes Baldwin, Tammy (D, WI) N/A N/A N/A N/A Ballenger, Cass (R, NC) Y Y Y Y pork Barcia, James (D, MI) N N N N proliferation Barr, Bob (R, GA) N/A N/A N N pork, missle proliferation Barrett, Bill (R, NE) Y Y Y Y beef, unfair barriers, supports a solid, commercially viable WTO trade agreement Barrett, Tom (D, WI) Y N Y Y pork Bartlett, Roscoe (R, MD) Y N N N opposes cooperation on space launch - national security House, Page 1 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 Barton, Joe (R, TX) Y Y N N national security, opposes space launch, drug standards Bass, Charles (R, NH) N/A N/A Y Y Bateman, Herb (R, VA) Y Y Y Y IPR, national security NSC Becerra, Xavier (D, CA) Y Y Y Y AV Bentsen, Ken (D, TX) N/A N/A Y Y direct selling, generally pro trade Bereuter, Doug (R, NE) Y Y Y Y legislation concerning accession, pork, beef, processed food, unfair barriers, supports a solid, commercially viable WTO trade agreement Berkley, Shelley (D,NV) N/A N/A N/A N/A Berman, Howard (D, CA) Y Y N Y trade deficit, SPS, AV, IPR, citrus, human rights, proliferation Berry, Marion (D, AR) N/A N/A Y Y rice, poultry, safeguards, generally pro trade Biggert, Judy (R, IL) N/A N/A N/A N/A during campaign: "political friendships follow the trade lanes," generally pro trade Bilbray, Brian (R, CA) N N Y Y Bilirakis, Michael (R, FL) N N Y Y IPR Bishop, Sanford (D, GA) Y N N N pork, cotton, textiles Blagojevich, Rod (D, IL) N/A N/A Y Y long-horned beetle hit in his district Bliley, Tom (R, VA) Y Y Y Y tobacco, financial services, insurance Blumenauer, Earl (D, OR) N/A N/A Y Y IPR, potatoes, wheat, generally pro trade House, Page 2 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 Blunt, Roy (R, MO) N/A N/A N N supports a solid, commercially viable WTO trade agreement, opposes China's current conduct and policies Boehlert, Sherwood (R, NY) Y Y Y Y Pork Boehner, John (R, OH) Y Y Y Y generally pro trade Bonilla, Henry (R, TX) Y Y Y Y "San Antonio imports more from china than from Mexico," generally pro trade Bonior, David (D, MI) N N N N autos, trade deficit, tariff levels, human rights Bono, Mary (R, CA) N/A N/A N/A Y SPS, IPR, AV Borski, Robert (D, PA) Y N N N Boswell, Leonard (D, IA) N/A N/A Y Y pork, corn, soybeans, fertilizer Boucher, Rick (D, VA) Y N Y Y beef, unfair barriers Boyd, Allen (D, FL) N/A N/A Y Y citrus, supports a solid, commercially viable WTO trade agreement Brady, Kevin (R, TX) N/A N/A Y Y Brady, Robert (D, PA) N/A N/A N/A N Brown, Corinne (D, FL) Y N N Y Brown, George (D, CA) Y Y Y Y citrus Brown, Sherrod (D, OH) N N Y N trade deficit, child labor, proliferation, trade costs US jobs Bryant, Ed (R, TN) N/A N/A Y Y pork Burr, Richard (R, NC) N/A N/A N N IPR, tobacco House, Page 3 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 Burton, Dan (R, IN) N N N N human rights, national security, trade deficit, tariff levels Buyer, Steve (R, IN) NSC Y Y Y Y pork, IPR Callahan, Sonny (R, AL) Y Y Y Y Calvert, Ken (R, CA) Y Y Y Y citrus, IPR Camp, Dave (R, MI) Y Y Y Y Campbell, Tom (R, CA) Y Y Y Y citrus Canady, Charles (R, FL) Y N Y Y Cannon, Chris (R, UT) N/A N/A Y Y proliferation, was challenged by GOP conservatives during reelection on MFN stance Capps, Lois (D, CA) N/A N/A Y Y Capuano, Michael (D, NA) N/A N/A N/A N/A Cardin, Benjamin (D, MD) Y Y N N distilled spirits, distribution, tariff levels, trade deficit, human rights Carson, Julia (D, IN) N/A N/A N N Castle, Michael (R, DE) Y Y Y Y generally pro trade Chabot, Steve (R, OH) N/A N/A Y Y beef, unfair barriers Chambliss, Saxby (R, GA) N/A N/A N N pork Chenoweth, Helen (R, ID) N/A N/A N N pork, beef, unfair trade practices Christain-Green (D-VI) Clay, William (D, MO) N N N N trade deficit Clayton, Eva (D, NC) Y N N N pork, textiles House, Page 4 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 Clement, Bob (D, TN) Y Y Y Y bicycle sanctions, generally pro trade Clyburn, Jim (D, SC) Y N N N tobacco Coble, Howard (R, NC) N Y Y Y pork Coburn, Tom (R, OK) N/A N/A N N national security, opposes space launch cooperation Collins, Mac (R, GA) N N N N pork, textiles, peaches Combest, Larry (R, TX) N Y Y Y pork, cotton Condit, Gary (D, CA) N N N N citrus, wine, trade deficit, proliferation, human rights Conyers, John (D, MI) N N Y Y autos, opposed formation of Cox Committee Cook, Merrill (R, UT) N/A N/A N N human rights, trade deficit Cooksey, John (R, LA) N/A N/A Y Y concerned about campaign donations, supports a solid, commercially viable WTO trade agreement Costello, Jerry (D, IL) N N N N trade deficit, violations of current agreements, human rights, proliferation Cox, Chris (R, CA) Y Y NV N IPR, supports Taiwan Coyne, William (D, PA) Y N N N US Steel has coke plant in district, strong W&M union operations in district Cramer, Bud (D, AL) N N Y Y Crane, Phil (R, IL) W&M Y Y Y Y IPR, insurance Crowley, Joseph (D, NY) N/A N/A N/A N/A Cubin, Barbara (R, WY) N/A N/A N Y soda ash House, Page 5 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 Cummings, Elijah (D, MD) N/A N/A N N Cunnigham, Duke (R, CA) Y Y Y Y citrus, generally pro trade Danner, Pat (D, MO) N N N N trade deficit Davis, Danny (D, IL) N/A N/A N Y opposed NAFTA Davis, Jim (D, FL) N/A N/A Y Y citrus, generally pro trade Davis, Tom (R, VA) N/A N/A Y Y opposes space launch cooperation Deal, Nathan (R, GA) N Y N N pork DeFazio, Peter (D, OR) N N N N trade deficit, tariff levels, proliferation DeGette, Diana (D, CO) N/A N/A Y Y concerns re: missile technology exports Delahunt, William (D, MA) N/A N/A N N has said Administration's China policy damages US credibility DeLauro, Rosa (D, CT) Y N N N trade deficit, IPR, human rights NSC DeLay, Tom (R, TX) Y Y Y Y strong supporter of Cox Committee DeMint, Jim (R, SC) N/A N/A N/A N/A Deutsch, Peter (D, FL) Y N Y Y citrus Diaz-Balart, Lincoln (R, FL) N N N N outspoken opponent of Administration's China policy, human rights Dickey, Jay (R, AR) N Y N N opposed GATT because of threat to sovereignty, has indicated voted against MFN because of human rights conditions he saw while on trip to China Dicks, Norm (D, WA) Y Y Y Y wood/paper, wheat, potatoes, wine Dingell, John (D, MI) Y N Y Y autos, telecom, financial services House, Page 6 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 Dixon, Julian (D, CA) Y N Y Y Doggett, Lloyd (D, TX) N/A N/A Y Y IPR Dooley, Cal (D, CA) Y Y Y Y citrus, grapes, pro trade Doolittle, John (R, CA) N N N N citrus Doyle, Mike (D, PA) N/A N/A Y Y Dreier, David (R, CA) Y Y Y Y citrus, IPR, pro trade Duncan, John (R, TN) N Y N N textiles Dunn, Jennifer (R, WA) Y Y Y Y accounting services, IPR, wheat, W&M wood/paper, generally pro trade Edwards, Chet (D, TX) Y Y Y Y cotton Ehlers, Vernon (R, MI) N/A N/A Y Y opposes space launch cooperation Ehrlich, Robert (R, MD) N/A N/A N N IPR, supports a solid, commercially viable WTO trade agreement Emerson, Jo Ann (D, MO) N/A N/A Y Y beef, unfair barriers, textile marking Engel, Eliot (D, NY) N N N N IPR English, Phil (R, PA) W&M N/A N/A Y Y IPR, safeguards, generally pro trade Eshoo, Anna (D, CA) Y Y Y Y IPR Etheridge, Bob (D, NC) N/A N/A Y Y trade deficit Evans, Lane (D, IL) N Y N N trade deficit, pork, beef, unfair barriers Everett, Terry (R, AL) N N N N pork Ewing, Tom (R, IL) Y Y Y Y cosponsor of Bereuter bill, supports a solid, commercially viable WTO trade agreement Faleomavaega Faleomavaega House, Page 7 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 Farr, Sam (D, CA) Y Y Y Y beef, unfair barriers, generally pro trade Fattah, Chaka (D, PA) N/A N/A Y Y Filner, Bob (D, CA) Y N Y Y opposed satellite exports Fletcher, Ernest (R, KY) N/A N/A N/A N/A Foley, Mark (R, FL) Y Y Y Y IPR, citrus Forbes, Michael (R, NY) N/A N/A N N Ford, Harold (D, TN) N/A N/A Y N/V whisky standards, pork Fossella, Vito (R, NY) N/A N/A N/A Y opposed POTUS going to Tiananmen while in PRC Fowler, Tillie (R, FL) Y Y N N proliferation, national security, considers self to be generally pro trade Frank, Barney (D, MA) N N N N trade deficit Franks, Bob (R, NJ) Y Y Y Y IPR Frelinghuysen, Rodney (R, N/A N/A Y Y generally pro trade NJ) Frost, Martin (D, TX) Y Y Y Y IPR Gallegly, Elton (R, CA) N N Y N citrus Ganske, Greg (R, IA) N/A N/A N N pork, IPR, trade deficit, job losses, proliferation; voted for MFN in 95 and 96; indicated in remarks on 4/8/99 he would oppose permanent MFN Gejdenson, Sam (D, CT) Y N N N insurance Gekas, George (R, PA) Y Y Y Y House, Page 8 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 Gephardt, Dick (D, MO) Y N N N IPR, safeguards, non-tariff barriers, human rights Gibbons, Jim (R, NV) N/A N/A N N human rights, national security, offered amendment in 1998 to stop exports of dual use technology Gilchrest, Wayne (R, MD) Y Y Y Y Gillmor, Paul (R, OH) Y Y N Y tariffs levels, pork, supports a solid, commercially viable WTO trade agreement Gilman, Benjamin (R, NY) Y N N N proliferation, tariff levels, trade deficit Gonzalez, Charles (D, TX) N/A N/A N/A N/A Goode, Virgil (D, VA) N/A N/A N N tobacco, textiles, strong labor presence in district Goodlatte, Bob (R, VA) Y Y Y Y investment requirements, patents, textiles Goodling, William (R, PA) Y Y N N Gordon, Bart (D, TN) Y Y N Y Goss, Porter (R, FL) Y Y Y Y citrus, reluctantly suppored MFN in 97 due to concerns re: proliferation Graham, Lindsey (R, SC) N/A N/A N N pork, textiles Granger, Kay (R, TX) N/A N/A Y Y generally pro trade Green, Gene (D, TX) Y N Y Y beef, unfair barriers Green, Mark (R, WI) N/A N/A N/A N/A Greenwood, Jim (R, PA) Y Y Y Y Gutierrez, Luis (D, IL) N N N N long-horned beetle hit in district Gutknecht, Gil (R, MN) N/A N/A Y Y concerns re: satellite sales House, Page 9 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 Hall, Ralph (D, TX) N N Y Y trade deficit Hall, Tony (D, OH) Y N N N human rights Hansen, James (R, UT) Y Y Y Y sat on Cox Committee Hastert, Denny (R, IL) Y Y Y Y ITA Hastings, Alcee (D, FL) N Y N N Hastings, Doc (R, WA) N/A N/A Y Y GM operations Hayes, Robin (R, NC) N/A N/A N/A N/A textiles -- owns textile mill, supports a solid, commercially viable WTO trade agreement Hayworth, J.D. (R, AZ) N/A N/A Y Y citrus Hefley, Joel (R, CO) N Y N N human rights proliferation Herger, Wally (R, CA) Y Y Y Y citrus, beef W&M Hill, Baron (D, IN) N/A N/A N/A N/A Hill, Rick (R, MT) N/A N/A Y Y wheat, beef Hilleary, Van (R, TN) N/A N/A N N human rights Hilliard, Earl (D, AL) N N N Y Hinchey, Maurice (D, NY) N N N N trade deficit, IPR Hinojosa, Ruben (D, TX) N/A N/A Y Y Has travelled to Taiwan to promot trade with South Texas Hobson, David (R, OH) Y Y N N Hoeffel, Joe (D, PA) N/A N/A N/A N/A Hoekstra, Peter (R, MI) Y Y Y Y pork House, Page 10 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 Holden, Tim (D, PA) N N Y Y mushroom dumping, pork Holt, Rush (D, NJ) N/A N/A N/A N/A Hooley, Darlene (D, OR) N/A N/A Y Y IPR, generally pro trade Horn, Steve (R, CA) Y Y N N citrus Hostettler, John (R, IN) N/A N/A N N pork, beef, unfair barriers Houghton, Amo (R, NY) Y Y Y Y IPR W&M Hoyer, Steny (D, MD) Y Y N N Hulshof, Kenny (R, MO) N/A N/A Y Y Hunter, Duncan (R, CA) N N N N citrus, trade deficit, proliferation, national security Hutchinson, Asa (R, AR) N/A N/A Y Y pork Hyde, Henry (R, IL) Y Y N N human rights Inslee, Jay (D, WA) N/A N/A N/A N/A potatoes, wood/paper Istook, Ernest (R, OK) N Y Y Y Jackson, Jesse Jr. (D, IL) N/A N/A N N Jackson-Lee, Sheila (D, TX) N/A N/A Y Y trade deficit Jefferson, Bill (D, LA) Y Y Y Y W&M Jenkins, Bill (R, TN) N/A N/A Y N has been criticized in district for support of MFN, has said TN exports $110 million to China per year John, Chris (D, LA) N/A N/A Y Y concerns re: job losses Johnson, E.B. (D, TX) Y Y Y Y direct selling House, Page 11 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 Johnson, Nancy (R, CT) Y Y Y Y distilled spirits, tariff levels, distribution W&M Johnson, Sam (R, TX) W&M N Y Y Y was undecided in 1997 due to concerns re: trade deficit, campaign donations Jones, Stephanie Tubbs (D, N/A N/A N/A N/A OH) Jones, Walter (R, NC) N/A N/A N N Kanjorski, Paul (D, PA) N N Y Y Kaptur, Marcy (D, OH) N N N N trade deficit Kasich, John (R, OH) Y Y N N human rights Kelly, Sue (R, NY) N/A N/A Y Y IPR Kennedy, Patrick (D, RI) N/A N/A N N proliferation, human rights Kildee, Dale (D, MI) N N N N Kilpatrick, Carolyn (D, MI) N/A N/A N N Kind, Ron (D, WI) N/A N/A Y Y bovine semen, dairy King, Peter (R, NY) Y Y N N IPR Kingston, Jack (R, GA) N N N N pork Kleczka, Gerald (D, WI) Y N Y Y generally pro trade Klink, Ron (D, PA) W&M N N N N trade deficit, human rights, environment Knollenberg, Joe (R, MI) Y Y Y Y generally pro trade Kolbe, Jim (R, AZ) Y Y Y Y citrus, generally pro trade Kucinich, Dennis (D, OH) N/A N/A N N "Human rights more important than copyrights" House, Page 12 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 LaFalce, John (D, NY) Y N Y Y financial services, was on 1979 CODEL to establish relations with PRC LaHood, Ray (R, IL) N/A N/A Y Y generally pro trade, agriculture Lampson, Nick (D, TX) N/A N/A Y Y generally pro trade Lantos, Tom (D, CA) N N N N human rights Largent, Steve (R, OK) N/A N/A Y Y generally pro trade Larson, John (D, CT) N/A N/A N/A N/A Latham, Tom (R, IA) N/A N/A Y Y pork LaTourette, Steven (R, OH) N/A N/A Y Y steel Lazio, Rick (R, NY) Y Y Y Y Leach, Jim (R, IA) Y Y Y Y pork, agriculture, financial services, generally pro trade Lee, Barbara (D, CA) N/A N/A N/A N IPR, human rights, PRC must open markets to US exports Levin, Sander (D, MI) W&M Y N Y Y pork, IPR, insurance, autos, safeguards, trade deficit Lewis, Jerry (R, CA) Y Y Y Y citrus Lewis, John (D, GA) W&M N N N N textiles, human rights Lewis, Ron (R, KY) N* N/A N Y whisky standards Linder, John (R, GA) Y Y Y Y pork Lipinski, William (D, IL) N N N N trade deficit, Sec. 301, lorn-horned beetle hit his district LoBiondo, Frank (R, NJ) N/A N/A N N Lofgren, Zoe (D, CA) N/A N/A Y Y IPR, AV, ITA House, Page 13 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 Lowey, Nita (D, NY) Y Y Y Y Lucas, Frank (R, OK) N/A N/A Y Y Lucas, Kenneth (D, KY) N* N/A N/A N/A Luther, Bill (D, MN) N/A N/A Y Y generally pro trade Maloney, Carolyn (D, NY) Y N Y Y Maloney, James (D, CT) N/A N/A N N Manzullo, Don (R, IL) Y Y Y Y pork Markey, Edward (D, MA) Y Y N N insurance, trade deficit Martinez, Matthew (D, CA) Y N Y Y citrus, grapes, wine Mascara, Frank (D, PA) N/A N/A N N microbrew beer (Jones Brewing Co.) in district trying to export to China Matsui, Bob (D, CA) W&M Y Y Y Y IPR, accounting services, citrus, professional services, ITA McCarthy, Carolyn (D, NY) N/A N/A N N McCarthy, Karen (D, MO) N/A N/A N Y generally pro trade, environment McCollum, Bill (R, FL) Y Y Y Y arbitral award McCrery, Jim (R, LA) W&M Y Y Y Y chemicals McDermott, Jim (D, WA) Y Y Y Y IPR, accounting services, wood/paper, W&M wine McGovern, James (D, MA) N/A N/A Y Y McHugh, John (R, NY) N N Y Y pork, IPR McInnis, Scott (R, CO) N Y N Y McIntosh, David (R, IN) N/A N/A Y Y beef, unfair trade practices House, Page 14 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 McIntryre, Mike (D, NC) N/A N/A N N tobacco McKeon, Buck (R, CA) Y Y Y Y trade deficit McKinney, Cynthia (D, GA) N N N N proliferation, human rights McNulty, Mike (D, NY) Y N Y N/V IPR W&M Meehan, Marty (D, MA) Y Y Y Y insurance, financial services Meek, Carrie (D, FL) Y Y Y Y Meeks, Gregory (D,NY) N/A N/A N/A Y Menendez, Robert (D, NJ) Y N N N Metcalf, Jack (R, WA) N/A N/A Y Y Mica, John (R, FL) N N Y Y Millender-McDonald, N/A N/A Y Y Juanita (D, CA) Miller, Dan (R, FL) Y Y Y Y Miller, Gary (R, CA) N N N/A N/A Miller, George (D, CA) N/A N/A N N human rights Minge, David (D, MN) Y N Y Y soybeans, corn Mink, Patsy (D, HI) N N N N trade deficit Moakley, Joe (D, MA) N N Y Y insurance, skating equipment sanctions, photo frame sanctions Mollohan, Alan (D, WV) N N N N Moore, Dennis (D, KS) N/A N/A N/A N/A Moran, Jim (D, VA) Y Y Y Y generally pro trade House, Page 15 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 Moran, Jerry (R, KS) Y Y Morella, Connie (R, MD) Y Y Y Y Murtha, John (D, PA) Y N Y Y Myrick, Sue (R, NC) N/A N/A N N Nadler, Jerry (D, NY) N N N N Napolitano, Grace (D, CA) N/A N/A N/A N/A Neal, Richard (D, MA) Y N Y Y insurance, generally pro trade W&M Nethercutt, George (R, WA) N/A N/A Y Y supports a solid, commercially viable WTO trade agreement Ney, Robert (R, OH) N/A N/A Y N pork Northup, Anne (R, KY) N/A N/A Y Y whisky standards, generally pro trade Norton (D-DC) Norwood, Charlie (R, GA) N/A N/A N N pork Nussle, Jim (R, IA) W&M Y Y Y Y beef, unfair trade barriers Oberstar, Jim (D, MN) N N Y Y paper tariffs Obey, Dave (D, WI) N N N N bovine semen exports, ginseng tariffs, dairy Olver, John (D, MA) Y N N N Ortiz, Solomon (D, TX) Y Y Y Y Travelled to Taiwan on business development trip for South Texas Ose, Doug (R, CA) N/A N/A N/A N/A Owens, Major (D, NY) N N N N IPR House, Page 16 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 Oxley, Michael (R, OH) Y Y Y Y pork, generally pro trade Packard, Ron (R, CA) Y Y Y Y citrus Pallone, Frank (D, NJ) N N N N Pascrell, William (D, NJ) N/A N/A N N textiles, human rights Pastor, Ed (D, AZ) Y Y Y Y citrus Paul, Ron (R, TX) N/A N/A Y Y Payne, Donald (D, NJ) N N N N trade deficit Pease, Edward (R, IN) N/A N/A Y Y Pelosi, Nancy (D, CA) Y Y N N IPR, human rights, proliferation, trade deficit, tech transfer, supports a solid, commercially viable WTO trade agreement Peterson, Collin (D, MN) N N Y Y Peterson, John (R, PA) N/A N/A Y Y Petri, Thomas (R, WI) Y Y Y Y bovine semen exports, supports a solid, commercially viable WTO trade agreement Phelps, David (D, IL) N/A N/A N/A N/A Pickering, Chip (R, MS) N/A N/A N N Contaminated feed imports, supports a solid, commercially viable WTO trade agreement, cosponsor of Bereuter bill, poultry, paper/wood, generally pro trade Pickett, Owen (D, VA) Y Y Y Y Pitts, Joseph (R, PA) N/A N/A Y Y Pombo, Richard (R, CA) N N N N citrus, pork, beef House, Page 17 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 Pomeroy, Earl (D, ND) Y N Y Y beef, unfair trade practices, wheat, safeguards Porter, John (R, IL) Y Y Y Y chemical sanctions Portman, Rob (R, OH) Y Y Y Y specialty bag sanctions, sweatshirt W&M sanctions, generally pro trade Price, David (D, NC) N/A N/A Y Y Pryce, Deborah (R, OH) Y Y Y Y accounting services Quinn, Jack (R, NY) N N Y Y Radanovich, George (R, CA) N/A N/A Y Y citrus Rahall, Nick (D, WV) N N N Y Ramstad, Jim (R, MN) Y Y Y Y skates sanctions, generally pro trade W&M Rangel, Charlie (D, NY) N N Y Y distilled spirits, tariff levels, distribution W&M Regula, Ralph (R, OH) Y N Y Y safeguards Reyes, Silvestre (D, TX) N/A N/A Y Y Reynolds, Thomas (R, NY) N/A N/A N/A N/A Riley, Bob (R, AL) N/A N/A N N Rivers, Lynn (D, MI) N/A N/A N N Rodriquez, Ciro (D, TX) N/A N/A Y Y Roemer, Tim (D, IN) Y N Y Y generally pro trade, wants better deal in WTO package on autos Rogan, Jim (R, CA) N/A N/A N N Rogers, Harold (R, KY) N N N N whisky standards House, Page 18 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 Rohrabacher, Dana (R, CA) N Y N Y trade deficit, citrus, Tibet Romero- Barcelo (D-PR) Ros-Lehtinen, Ileana (R, FL) N N N N Rothman, Steven (D, NJ) N/A N/A N Y Roukema, Marge (R, NJ) Y Y Y Y Joint venture operations, arbitral award Roybal-Allard, Lucille (D, Y Y Y N CA) Royce, Ed (R, CA) N N N Y Rush, Bobby (D, IL) N N Y Y Ryan, Paul (R, WI) N/A N/A N/A N/A Ryun, Jim (R, KS) N/A N/A Y N national security, human rights Sabo, Martin (D, MN) N N N Y Salmon, Matt (R, AZ) N/A N/A Y N citrus Sanchez, Loretta (D, CA) N/A N/A N N Sanders, Bernie (I, VT) N N N Y trade deficit, human rights Sandlin, Max (D, TX) N/A N/A Y N Sanford, Mark (R, SC) N/A N/A N Y national security, Taiwan Sawyer, Tom (D, OH) Y Y Y N trade deficit Saxton, Jim (R, NJ) Y N Y N IPR Scarborough, Joe (R, FL) N/A N/A N N human rights, proliferation Schaffer, Bob (R, CO) N/A N/A N Y Schakowsky, Janice (D, IL) N/A N/A N/A N/A Scott, Bobby (D, VA) Y N N N House, Page 19 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 Sensenbrenner, Jim (R, WI) N Y N N/V Serrano, Jose (D, NY) Y N N Y financial services Sessions, Pete (R, TX) N/A N/A Y Y Shadegg, John (R, AZ) N/A N/A Y Y citrus Shaw, Clay (R, FL) W&M Y Y Y Y arbitral award Shays, Chris (R, CT) Y Y Y Y copper price rigging, IPR Sherman, Brad (D,CA) N/A N/A Y Y citrus Sherwood, Don (R, PA) N/A N/A N/A N/A Shimkus, John (R, IL) N/A N/A Y Y Shows, Ronnie (D, MS) N/A N/A N/A N/A Shuster, Bud (R, PA) Y N Y Y Simpson, Michael (R, ID) N/A N/A N/A N/A Sisisky, Norman (D, VA) N N N N Skeen, Joe (R, NM) N Y Y Y Skelton, Ike (D, MO) Y Y Y Y generally pro trade, agriculture Slaughter, Louise (D, NY) Y N Y Y Smith, Adam (D, WA) N/A N/A Y Y IPR Smith, Chris (R, NJ) N N N N trade deficit, human rights, Tibet Smith, Lamar (R, TX) Y Y Y Y Smith, Linda (R, WA) N/A N/A N N trade deficit, proliferation, must open markets to apples Smith, Nick (R, MI) Y Y N Y Pork Snyder, Vic (D, AR) N/A N/A Y Y House, Page 20 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 Souder, Mark (R, IN) N/A N/A N N Spence, Floyd (R, SC) N N N N Spratt, John (D, SC) N Y N N fishing rod sanctions, subsidies, textiles Stabenow, Debbie (D, MI) N/A N/A Y Y Stark, Pete (D, CA) W&M N N N N proliferation, human rights, IPR, job losses Stearns, Cliff (R, FL) N N N N trade deficit Stenholm, Charlie (D, TX) Y Y Y Y generally pro trade, WTO helps China with rule of law, cotton, agriculture Strickland, Ted (D, OH) N/A N/A N N Stump, Bob (R, AZ) N Y Y Y citrus Stupak, Bart (D, MI) N N N N worker rights, trade deficit Sununu, John (R, NH) N/A N/A Y N Sweeney, John (R, NY) N/A N/A N/A N/A Talent, James (R, MO) Y N Y Y Tancredo, Tom (R, CO) N/A N/A N/A N/A Tanner, John (D, TN) Y Y Y Y Tauscher, Ellen (D, CA) N/A N/A Y Y IPR, citrus, generally pro trade Tauzin, Billy (R, LA) Y N Y Y crawfish sanctions Taylor, Charles (R, NC) N N Y N Taylor, Gene (D, MS) N N N N human rights, tariff level Terry, Lee (R, NE) N/A N/A N/A N/A supports a solid, commercially viable WTO trade agreement House, Page 21 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 Thomas, Bill (R, CA) W&M Y Y Y Y grapes, SPS restrictions on CA produce, pork, pistachios, citrus Thompson, Bennie (D, MS) N/A N/A N N Thompson, Mike (D, CA) N N N/A N/A Thornberry (R, TX) N/A N/A Y Y Thune, John (R, SD) N/A N/A Y Y Thurman, Karen (D, FL) N N Y Y citrus Tiahrt, Todd (R, KS) N/A N/A N N Tierney, John (D, MA) N/A N/A N N Toomey, Pat (R, PA) N/A N/A N/A N/A Towns, Edolphus (D, NY) N N Y Y Traficant, Jim (D, OH) N N N N tariff levels, national security, metal casting, supports a solid, commercially viable WTO trade agreement Turner, Jim (D, TX) N/A N/A Y Y Udall, Mark (R, CO) N/A N/A N/A N/A Udall, Tom (D, NM) N/A N/A N/A N/A Underwood (D-GU) Upton, Fred (R, MI) Y Y N Y pork, proliferation Velazquez, Nydia (D, NY) N N N N Vento, Bruce (D, MN) Y N N N worker rights, proliferation Visclosky, Pete (D, IN) Y N N N trade deficit, failure to implement existing agreements, human rights, safeguards, proliferation House, Page 22 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 Walden, Greg (R, OR) N/A N/A N/A N/A Walsh, James (R, NY) Y N Y Y Wamp, Zach (R, TN) N/A N/A N N cardboard recycling Waters, Maxine (D, CA) Y N N N Watkins, Wes (R, OK) N/A N/A Y Y beef, fertilizer Watt, Mel (D, NC) N N N Y Watts, J.C. (R, OK) N/A N/A N Y Waxman, Henry (D, CA) N N N N Weiner, Anthony (D, NY) N/A N/A N/A N/A Weldon, Curt (R, PA) Y N Y Y Weldon, Dave (R, FL) N/A N/A N N Weller, Jerry (R, IL) N/A N/A Y Y pork Wexler, Robert (D, FL) N/A N/A N N Weygand, Robert (D, RI) N/A N/A N N Whitfield, Ed (R, KY) N/A N/A Y Y whisky standards Wicker, Roger (R, MS) N/A N/A Y Y Wilson, Heather (R, NM) N/A N/A N/A Y Wise, Robert (D, WV) N N Y Y Wolf, Frank (R, VA) N Y N N trade deficit, proliferation, human rights, moral issues Woolsey, Lynn (D, CA) N N N N IPR, human rights Wu, David (D, OR) N/A N/A N/A N/A wheat, apples Wynn, Albert (D, MD) Y N N N engagement has not worked House, Page 23 Member GATT NAFTA MFN MFN Areas of Interest/Concern 1997 1998 Young, Bill (R, FL) Y Y Y N/V citrus Young, Don (R, AK) N N Y N House, Page 24 Withdrawal/Redaction Marker Clinton Library DOCUMENT NO. SUBJECT/TITLE DATE RESTRICTION AND TYPE 001. email Malcolm Lee to Melissa Green, Sharon Yuan, Gene Sperling, and Lael 04/15/1999 P1/b(1) Brainard. Subject: For Podesta. (2 pages) COLLECTION: Clinton Presidential Records National Economic Council Malcolm Lee OA/Box Number: CF 1176 FOLDER TITLE: China ( April to August 1999, Post Zhu Visit) [4] 2010-1024-F vz1932 RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - |5 U.S.C. 552(b)] P1 National Security Classified Information |(a)(1) of the PRA| b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA] an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy |(b)(6) of the FOIA] personal privacy |(a)(6) of the PRAJ b(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed b(8) Release would disclose information concerning the regulation of of gift. financial institutions |(b)(8) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(9) Release would disclose geological or geophysical information 2201(3). concerning wells |(b)(9) of the FOIA] RR. Document will be reviewed upon request. To' Melesst To: Malcolm R. Lee/OPD/EOP CC: Subject: Gene's list with companies althring through Calls (GS only) Corporations contrite 9000mg 40 we -- Larry Bossidy, Allied Signal websore 2 leb'n N base felen sector address sever quot 1 -- Steve Case, AOL -- Phil Condit, Boeing cant accer wilston -- George Fisher, Eastman Kodak csargo -- Bill Ford, Ford Motor D,SU, Gyzho -- Maurice Greenberg, AIG tisk -- Jim Kelly, UPS -- Frederick Smith, Federal Express -- Jack Smith, General Motors - telen problem -- Sandy Weill, Citigroup -- Jack Welch, General Electric -- Joe Gorman, TRW OPCRM/ITS ID:2024825875 APR 14'99 18:32 No. 011 P.01 U.S. DEPARTMENT OF COMMERCE INTERNATIONAL TRADE ADMINISTRATION TRADE DEVELOPMENT INDUSTRIAL TRADE STAFF FAX MESSAGE Date: 14/4/99 TO: Malcolm Lee FAX: 456-9290 FROM: Sarah Sipkins TEL: 202/482-4850 FAX: 202/482-5875 Number of Pages (including this page): - RE: I torit a shb at this, without specific HS #s, I bried to identify what might be their interests based on previous discussions Nite: the asterix indicates too mony HS #s. Please read from Anney 10 pages attached. N.H to release Annex 10 to public as of yet. I've bracketed relevant lines- OPCRM/ITS ID: 2024825875 APR 14'99 18:32 No. 011 P.02 Private Sector Industry Interests Industry Sector HS Codes Bound Base rate Implem. year Interest rate 1997 Kodak Film, 37031010film 35 50 2005 Cameras 370710 film 8 15 2003 37024190 film 22 25 2001 90029010 other optical 15 20 2002 90105029 apparatus for 17 25 2003 lab Allied Telecom 85173090-telephonic 0 15 2003 Signal Switching switching appartus Equip. GM* autos/ 87032 cars 25 80 2005 parts 87033 cars 25 100 2005 8704-8** 5- 32range 6-70 2000-2005 GE* lighting, 7007110 safety glass 2 2 2000 refrigerator 8402-8406 turbines** 2-16 3-18 2000-2004 S, 8413-14** washer/dry 8415** er, turbines 8418** 8708** 8421**filters 8430** 8431** 8479** 8450110 wash machine 10 35 2005 9104 instru. panel clocks 10 22 2004 94051 Chandeliers, wall 20 22 2000 94054090 Electric lamps 15 22 2003 TRW satellite ?? Need more specific delimited Have received no services?? comments previously *Motor vehicles will go down to 25%- one of the lowest rates in Asia- by year 2005. Also quotas and licenses will be eliminated by 2005. Auto parts will also have tariffs reduced to an average of 10%. **see attached OPCRM/ITS ID: :2024825875 APR 14'99 18:33 No 011 P.03 Annex 10: Industrial Tariff Schedule of PRC 04/08/99 Bound Rate Base Rate Year of Hs96prc Description (4/7/99 offer) (10/1/97 mfn) Completion 83052000 Staples in strips, of base metal 10.5 14 2001 83059000 Letter corners,letteri_paper clips & similar office art 0 10.5 18 2003 83061000 Bells, gongs & the like, of base metal 8 12 2001 83062100 Statuettes & other ornaments plated with precious m 8 18 2004 83062910 Cloisonne statuettes & other ornaments 8 18 2004 83062990 Other statuettes & other ornaments of base metal, ne 8 18 2004 83063000 Photograph, picture.[_similar frames & mirrors of bas 8 18 2004 83071000 Tubing, flexible, withi_without fittings of li_s 8.4 12 2001 83079000 Tubing, flexible, withi_without fittings, of base metal, 8.4 12 2001 83081000 Hooks,eyes & eyelets of base metal 10.5 14 2001 83082000 Rivets,tubular,bifurcated of base metal 10.5 14 2001 83089000 Claps.buckles & like, beads & spangles of base meta 10.5 14 2001 83091000 Corks, crown, of base metal 18 18 2000 83099000 Stoppers,caps,lids & oth packing accessories of bas 12 18 2002 83100000 Letters,numbers,sign plates & sim articles of base m 18 18 2000 83111000 Electrodes, coated, of base metal, for electric arc well 8 10 2000 83112000 Wire, cored, of base metal, for electric arc welding 8 10 2000 83113000 Coated rods & cored wire of base mtl for soldering, br 8 10 2000 83119000 Coatd tubes/sim prod of base mtl/mtl carbd,nes, for $ 8 10 2000 84011000 Nuclear reactors 2 2 2000 84012000 Machinery & apparatus for isotopic separation & part 1 1 2000 84013010 Fuel elements (cartridges), non-irradiated 2 3 2000 84013090 Parts of non-irradiated fuel elements 1 1 2000 84014000 Parts of nuclear reactors 1 1 2000 84021110 Watertube boilers for electricity, steam productioni 90 3 6 2001 84021190 Other watertube boilers with a steam productioni 45T 14 18 2001 84021200 Watertube boilers with a steam production not I 45T 5 18 2004 84021900 Vapour generating bollers nes, Including hybrid boilen 5 16 2004 84022000 Super-heated water boilers 16 16 2000 84029000 Parts of steami_vapour generating boilers nes 2 3 2000 84031000 Central heating boilers nes 10 18 2003 84039000 Parts of central heating boiler nes 6 12 2002 84041010 Auxillary plant for use with generating boilers of 84.0 7 14 2003 84041020 Auxiliary plant for use with generating boilers of 84.0 10 18 2003 84042000 Condensers for steami_vapour power units 14 15 2000 84049010 Parts of auxiliary plant of heading No. 84041020 10 10 2000 84049090 Parts of auxillary plant/condensers of headings 84041 7 10 2001 84051000 Producer water gas generators acetylene gas g 14 14 2000 84059000 Parts of prod gasi_wat gas gen,acetylene gas gen & 8 10 2000 84061000 Steam & vapour turbines for marine propulsion 5 14 2004 84068110 Other steam & vapour turbines, outputi_100MVA 5 18 2004 84068120 Other steam & vapour turbines, 100MVA<outputl_35 5 18 2004 84068130 Other steam & vapour turbines, of an outputi 350MV 6 6 2000 84068200 Other steam & vapour turbines, output/_40MVA 5 16 2004 84069000 Parts of steam & vapour turbines 2 3 2000 84071010 Aircraft engines, spark-igni recip-/rotary type, of an out 2 2 2000 84071020 Aircraft engines, spark-ignition recip-i_rotary type, o 2 2 2000 84072100 Mmarine outboard motors, spark-ignition recipr-i_rota 8 15 2003 84072900 Marine engines nes, spark-ignition reciprocatingi_rot 8 15 2003 78 OPCRM/ITS ID: 2024825875 APR 14'99 18:33 No 011 P.04 Annex 10: Industrial Tariff Schedule of PRC 04/08/99 Bound Rate Base Rate Year of Hs96prc Description (4/7/99 offer) (10/1/97 mfn) Completion 84131100 Pumps for dispersn fuel/lubricants used in fillng-statio 10 12 2000 84131900 Pumps fittedf_designed to be fitted with a measuring 10 12 2000 84132000 Hand pumps nes, o/t those of subheading No 8413.1 10 12 2000 84133010 Fuel pumps for int comb piston engines of an outputi 3 10 2003 84133090 Fuel/lubricatg/coolng medium pumps for int comb pls 3 12 2004 84134000 Concrete pumps 15 15 2000 84135000 Reciprocating positive displacement pumps nes 10 15 2002 84136010 Electric surmerged pumps 10 18 2003 84136090 Other rotary positive displacement pumps, nes 10 14 2001 84137000 Centrifugal pumps nes 10 14 2001 84138100 Pumps nes 10 14 2001 84138200 Liquid elevators 8 14 2002 84139100 Parts of pumps for liquids 5 6 2000 84139200 Parts of liquid elevators 6 6 2000 84141000 Vacuum pumps 8 15 2003 84142000 Handl_foot-operated air pumps 8 12 2001 84143011 Compressors for refrige/freezer,motor powerl_0.4kw 10 22 2004 84143012 Compressors for refrigeí freezer, 0.4kw< motor pow 10 25 2004 84143013 Compressors for airconditioner, 0.4kw < motor power 10 25 2004 84143014 Compressors for airconditioner, motor powerl 5 kw 10 25 2004 84143019 Compressors driven by a motor, nes 10 20 2004 84143090 Compressors driven by a non-motor 9 20 2001 84144000 Air compressors mounted on a wheeled chassis for t 8 16 2003 84145110 Ceiling/roof fans, with a built-in electric motor of outp 20 25 2002 84145120 Window fans, with a built-in electric motor of outputi 20 25 2002 84145130 Rapating front louver fans, with built-in electric motor, 12 15 2001 84145191 Table fans, with a built-in electric motor of outputi 12 10 15 2002 84145192 Floor fans. with a built-in electric motor of outputi_12 10 15 2002 84145193 Wall fans, with a built-in electric motor of outputi 125 10 15 2002 84145199 Fans nes, with a built-in electric motor of outputi_125 10 15 2002 84145910 Other ceiling/roof fans, nes 8 15 2003 84145920 Other window fans, nes 8 16 2003 84145930 Centrifugal ventilators 10 18 2003 84145990 Other fans, nes 10 18 2003 84146000 Hoods having a maximum horizontal side I_120 cm 20 20 2000 84148010 Free-piston generators for gas turbine 8 12 2001 84148020 Carbon dioxide compressors 7 18 2004 84148090 Air or gas compressors/hoods, nes 7 16 2004 84149010 Parts of compressors of subheadng Nos. 84143011- 10 12 2000 84149020 Parts of machines of subheading Nos. 84145110-841 12 15 2001 84149090 Parts of of machines of other subheadings of 84.14, 7 12 2002 84151000 Air conditioning machines windowl wall types, self-c 15 25 2004 84152000 Air conditioning machines used for persons in motor 20 40 2005 84158110 Air-conditioner nes,with refri 4000 Kcal/h &cool/heat 15 25 2004 84158120 Air-conditioner nes,with refri 4000 Kcal/h &cool/heat 20 35 2004 84158210 Air-conditioner nes, with refrigerating unit, 4000 Kc 15 25 2004 84158220 Air-conditioner nes, with refrigerating >4000 Kcal 20 35 2004 84158300 Air conditioner, not incorporating refrigerating unit 10 25 2004 84159010 Parts of air conditners of subheadngs 8415.1000,841 10 15 2002 80 OPCRM/ITS ID 2024825875 APR 14'99 18:34 No 011 P.05 Annex 10: Industrial Tariff Schedule of PRC 04/08/99 Bound Rate Base Rate Year of Hs96prc Description (4/7/99 offer) (10/1/97 mfn) Completion 84159090 Parts of air conditioners of other subheadings of 84.1 10 16 2002 84161000 Furnace burners for liquid fuel 10 14 2001 84162000 Furnace burners nes, including combination burners 10.5 14 2001 84163000 Mechanical stokers 8.4 14 2002 84169000 Parts of appliances of heading No. 84.16 6 7 2000 84171000 Furnaces/ovens n-elec for heat-treat of ores, pyrites. 10 18 2003 84172000 Bakery ovens, including biscuit ovens, non-electric 10 15 2002 84178010 Coke furnace 10 18 2003 84178020 Incinerators for radioactive waste 5 5 2000 84178090 Industrial/lab furnaces/ovens, non-electric, nes 10 16 2002 84179010 Parts of rotary kiln for sponge iron 7 8 2000 84179020 Parts of coke furnace 7 7 2000 84179090 Parts of other appliances of heading No. 84.17 7 8 2000 84181010 Combined refri-freezers, with separate external doors 10 30 2005 84181090 Combined refri-freezers, with separate expernal door 15 30 2004 84182100 Refrigerators, household type, compression-type 15 25 2004 84182200 Refrigerators, household type, absorption-type, electri 15 35 2005 84182900 Refrigerators, household type, nes 30 35 2002 84183010 Freezers of chest type, capacityl_8001,TI_-40ip 9 18 2004 84183021 Freezers of chest type, 500 If capacity1_800 L, TI -40 23 30 2003 84183029 Freezers of chest type,capacityl_500L, Ti-40[u 30 35 2002 84184010 Freezers of upright type,capacityl_900L. -40ip 9 18 2004 84184021 Freezers of upright type, 500 LI capacityf_900L. TI - 15 30 2004 84184029 Freezers of upright type,capacityi_500L, T> -40lu 30 35 2002 84185000 Other refrigerating!_freezing chests,cabinets,display 15 25 2004 84186110 Refrigerating unit of compres type/heat-exch conden 20 25 2002 84186190 Other refigerating equip of compres type/heat-exch C 20 35 2004 84186910 Refrigerating unit and heat pumps, nes 15 25 2004 84186990 Other refrigerating freezing equipment, nes 15 35 2005 84189100 Furniture designed to receive refrigeratingi_freezing 20 20 2000 84189910 Parts of refrigerating units and heat pumps 10 15 2002 84189991 Parts of freezing equipment of TI_-40ip 9.5 10 2000 84189992 Parts of freezing equip of TI -40lu.capa 10 20 2004 84189999 Parts of other refrigeratingi_freezing equipment, nes 10 20 2004 84191100 Instantaneous gas water heaters 35 35 2000 84191900 Instantaneousl_storage water heaters, non-electric, n 35 35 2000 84192000 Medical, surgicali laboratory sterilizers 4 14 2004 84193100 Dryers for agricultural products 8 14 2002 84193200 Dryers for wood, paper pulp, paperi_paperboard 9 14 2002 84193900 Non-domestic, non-electric dryers nes 9 14 2002 84194000 Distilling/irectifying plant 10 15 2002 84195000 Heat exchange units. non-domestic, non-electric 10 16 2002 84196010 Oxygen-making machines 13 18 2002 84196090 Machinery for liquefying airl_other gases, nes 13 18 2002 84198100 Machinery for makng hot drinks/cooking or heating foi 10 15 2002 84198900 Machinery, plantí_lab equip for treat of mat. by a chg 0 16 2004 84199010 Parts of water heaters 0 15 2003 84199090 Parts of other machinery, plant & equip of heading 84 4 8 2001 84201000 Calendering!_rolling machines, excl for metalsi_glass; 8.4 13 2002 81 OPCRM/ITS ID:2024825875 APR 14'99 18:35 No 011 P.06 Annex 10: Industrial Tariff Schedule of PRC 04/08/99 Bound Rate Base Rate Year of Hs96prc Description (4/7/99 offer) (10/1/97 mfn) Completion 87060090 Chassis fit with engines for oth vehicles of 87.01 to 8 10 60 2005 87071000 Bodies for passenger carrying vehicles 10 70 2005 87079010 Bodies for buses with 10 to 29 seats 10 50 2005 87079090 Bodies for tractors, buses, trucks, special purpose ve 10 50 2005 87081000 Bumpers & parts of motor vehicles 10 35 2005 87082100 Safety seat belts of motor vehicles 10 35 2005 87082910 Seat angle adjuster 10 50 2005 87082920 Safety airbags 10 50 2005 87082990 Parts & accessories of bodies nes for motor vehicles 10 35 2005 87083100 Mounted brake linings of motor vehicles 10 35 2005 87083910 Brakes & parts nes of tractors 6 9 2001 87083920 Brakes & parts nes of buses with seatsl 30 10 35 2005 87083930 Brakes & parts nes of dumpers 6 6 2000 87083940 Brakes & parts nes of trucks of 8704.2100/2230/3100 10 35 2005 87083950 Brakes & parts nes of trucks of 8704.2240. 8704.230 10 20 2004 87083960 Brakes & parts nes of vehicles of 87.05 10 20 2004 87083990 Brakes & parts nes of other vehicles of 87.02 to 87.0 10 50 2005 87084010 Gear boxes of tractors 6 9 2001 87084020 Gear boxes of buses with seatsí 30 10 35 2005 87084030 Gear boxes of dumpers 6 6 2000 87084040 Gear boxes of trucks of 8704.2100/2230/3100/3230 10 35 2005 87084050 Gear boxes of trucks of 8704.2240, 8704.2300,8704. 10 20 2004 87084060 Gear boxes of vehicles of 87.05 10 20 2004 87084090 Gear boxes of other motor vehicles of 87.02 to 87.04 10 50 2005 87085010 Drive axles with differential of tractors 6 9 2001 87085020 Drive axles with differential of buses with seatsí 30 10 35 2005 87085030 Drive axles with differential of dumpers 6 6 2000 87085040 Drive axles with differential of trucks of 8704.2100/22 10 35 2005 87085050 Drive axles with differential of trucks of 8704.2240, 8 10 20 2004 87085060 Drive axles with differential of vehicles of 87.05 10 20 2004 87085090 Drive axles with differential of other vehicles of 87.02 10 40 2005 87086010 Non-driving axles & parts of tractors 6 9 2001 87086020 Non-driving axles & parts of buses with seatsi 30 15 35 2005 87086030 Non-driving axles & parts of dumpers 6 6 2000 87086040 Non-driving axles & parts of trucks of 8704.2100/223 10 35 2005 87086050 Non-driving axles & parts of trucks of 8704.2240, 870 10 20 2004 87086060 Non-driving axles & parts of vehicles of 87.05 10 20 2004 87086090 Non-driving axles & parts of other vehicles of 87.02 t 10 40 2005 87087010 Road wheel & parts of tractors 6 9 2001 87087020 Road wheel & parts of buses with seatsi 30 10 35 2005 87087030 Road wheel & parts of dumpers 6 6 2000 87087040 Road wheel & parts of trucks of 8704.2100/2230/310 10 35 2005 87087050 Road wheel & parts of trucks of 8704.2240. 8704.230 10 20 2004 87087060 Road wheel & parts of vehicles of 87.05 10 20 2004 87087090 Road wheel & parts of other vehicles of 87.02 to 87.0 10 40 2005 87088010 Shock absorbers of vehicles of 87.03 10 40 2005 87088090 Shock absorbers of vehicles of 87.01, 87.02. 87,04, 8 10 40 2005 87089100 Radiators of motor vehicles 10 35 2005 87089200 Mufflers & exhaust pipes of motor vehicles 10 35 2005 104 OPCRM/ITS ID:2024825875 APR 14'99 18:36 No. 011 P.07 Annex 10: Industrial Tariff Schedule of PRC 04/08/99 Bound Rate Base Rate Year of Hs96prc Description (4/7/99 offer) (10/1/97 mfn) Completion 84209100 Cylinders for calenderingf_rolling mach, excl for meta 8.4 10 2000 84209900 Parts of calendering(_rolling mach nes, excl for metali 8 10 2000 84211100 Cream separators 8.4 15 2003 84211210 Clothes-dryers, centrifugal, capacity[_10kg 17.5 20 2001 84211290 Clothes-dryers, centrifugal, capacityl 10kg 8 15 2003 84211900 Other centrifuges, nes 10 16 2002 84212110 Filteringi_purifying machines for water, household ty 25 30 2002 84212190 Filteringl_purifying machines for water, non-householl 5 18 2004 84212200 Filtering{_purifying machines for beverages. excl wate 12 18 2002 84212300 Oill_petrol-filters for internal combustion engines 10 18 2003 84212910 Press filters 5 20 2004 84212990 Filteringf_purifying machinery & apparatus for liquids 5 18 2004 84213100 Intake air filters for internal combustion engines 10 18 2003 84213910 Filtering[_purifying machines for gases nes, househol 15 30 2004 84213990 Filteringi_purifying machines for gases nes, non-hou 5 18 2004 84219110 Parts of centrifugal clothes-dryers of capacityi_10kg 0 15 2003 84219190 Parts of other centrifuges, nes 0 10 2002 84219910 Parts for filtering/_purifying machines of household ty 10 20 2004 84219990 Parts for filteringl_purifying machines of non-househ 5 10 2002 84221100 Dish washing machines of the HH type 18 25 2003 84221900 Dish washing machines nes 14 22 2003 84222000 Machinery for cleaningi_drying bottles/_containers n 10 15 2002 84223010 Bottling or canning machinery for beverage or liquid f 12 15 2001 84223020 Machinery for packing cement 12 18 2002 84223090 Mach to fill/close/seal bottle/can/box/. nes;beverage 10 18 2003 84224000 Packing!_wrapping machinery nes 10 16 2002 84229010 Parts of dish washing machines 10.5 18 2003 84229020 Parts of bottling or canning machines for beverage/liq 8.5 10 2000 84229090 Parts of other machines of heading 84.22, nes 8.5 10 2000 84231000 Personal weighing machines, including baby scales; 10.5 25 2004 84232000 Scales for continuous weighing of goods on conveyor 10 20 2004 84233000 Constant weight scales, Incl hopper scales 10.5 20 2004 84238100 Weighing machinery having max weighing cap. 1_30 10.5 16 2002 84238200 Weighing machinery having max weighing 30kg<cap 10.5 20 2004 84238900 Weighing machinery, nes 10.5 20 2004 84239000 Weighing machine weights of all kinds; parts of weigh 10 12 2000 84241000 Fire extinguishers, whetherl, not charged 8.4 12 2001 84242000 Spray guns & similar appliances 8.4 12 2001 84243000 Steami sand blasting machines & similar jet projectin 8.4 12 2001 84248100 Mech appl for proj/dlspl_spraying lqdsl_powders for 8 12 2001 84248910 Othr liquid/powder projec/spray machines, nes, hous 0 25 2005 84248990 Othr liquid/powder projec/spray machines, nes, non- 0 12 2003 84249010 Parts of fire extinguishers 0 8 2002 84249020 Parts of liquid/powder projec/spray machines of hous 0 15 2003 84249090 Parts of other apparatus of heading 84,24 0 10 2002 84251100 Pulley tackle/hoists, electric, not for raising vehicles 6 16 2004 84251900 Pulley tackle and hoists, nes, not for raising vehicles 5 14 2004 84252000 Pit-head winding gear winches for use underground 10 16 2002 84253100 Winches/_capstans nes powered by electric motor 5 14 2004 82 OPCRM/ITS ID 2024825875 APR 14'99 18:37 No. 011 P.08 Annex 10: Industrial Tariff Schedule of PRC 04/08/99 Bound Rate Base Rate Year of Hs96prc Description (4/7/99 offer) (10/1/97 mfn) Completion 84253900 Winchesi_captsans nes 5 14 2004 84254100 Built-in jacking systems of a type used in garage 3 12 2004 84254210 Hydraulic jacks used for raising vehicles 3 12 2004 84254290 Hydraulic hoists used for raising vehicles 5 14 2004 84254910 Other jacks, nes 5 12 2003 84254990 Other hoists, nes 10 14 2001 84261110 Ships' derricks 5 16 2004 84261190 Overhead travelling cranes on fixed support, nes 8 15 2003 84261200 Mobile lifting frames on tyres & straddle carriers 6 14 2003 84261900 Transporterl_bridge cranes 10 15 2002 84262000 Tower cranes 10 15 2002 84263000 Portall pedestal Jlb cranes 6 14 2003 84264110 Self-propelled cranes on tyres 5 18 2004 84264190 Other self-propelled machinery with a crane on tyres, 5 16 2004 84264910 Caterpillar cranes 13 18 2002 84264990 Cranes/work trucks fitted with a crane, self-propelled. 13 16 2001 84269100 Cranes designed for mounting on road vehicles 10 15 2002 84269900 Cranesi_derricks nes 6 14 2003 84271000 Self-propelled works trucks powered by an electric m 9 18 2004 84272010 Fork-lift trucks for containers 9 18 2004 84272090 Self-propelled works trucks nes 9 16 2003 84279000 Trucks fitted with liftingl_handling equipment, non-po 9 16 2003 84281010 Lifts and skip hoists for the transport of persons 8 18 2004 84281090 Other lifts and skip hoists 6 15 2004 84282000 Pneumatic elevators & conveyors 5 16 2004 84283100 Continous-action elevators/conveyors for goods, und 5 16 2004 84283200 Continous-action elevators/conveyors for goods nes, 5 15 2004 84283300 Continous-action elevators/conveyors for goods nes. 5 15 2004 84283900 Continous-action elevators/conveyors for goods, nes 5 15 2004 84284000 Escalators & moving walkways 5 18 2004 84285000 Wagon handling equipment 10 15 2002 84286000 Teleferics,chalr-liftsski-drglnes; traction mechanisms 8 15 2003 84289000 Lifting, handling, loadingi_unloading machinery nes 5 14 2004 84291110 Bulldozers/angledozers,trackedy with engine outputi 2 7 12 2002 84291190 Bulldozers/angledozers,tracked,v with engine outputi 7 15 2003 84291910 Bulldozers/angledozers, non-tracked, with engine out 7 12 2002 84291990 Bulldozers/angledozers, non-tracked, with engine out 7 15 2003 84292010 Graders/leveliers,sif-prplled, with engine outputi 235. 5 12 2003 84292090 Graders/levellers,slf-prplled, with engine outputí_235 7 16 2004 84293010 Scrapers, self-propelled, bucket capacityl 10 m3 3 12 2004 84293090 Scrapers, self-propelled, bucket capacityf_10 m3 5 15 2004 84294011 Vibratory road rollers, self-propelled. dead weight 1 7 15 2003 84294019 Other road rollers, self-propelled 8 15 2003 84294090 Tamping machines/road rollers, self-propelled, nes 6 15 2004 84295100 Front end shovel loaders 5 16 2004 84295200 Shovels & excavators with a 360 revolving superstru 8 18 2004 84295900 Self-propeiled excavating machinery nes 12 16 2001 84301000 Pile-drivers & pile-extractors 10 15 2002 84302000 Snow-ploughs & snow-blowers, not self-propelled 10 14 2001 83 OPCRM/ITS ID: 2024825875 APR 14'99 18:38 No 011 P.09 Annex 10: Industrial Tariff Schedule of PRC 04/08/99 Bound Rate Base Rate Year of Hs96prc Description (4/7/99 offer) (10/1/97 mfn) Completion 84303100 Coall_rock cutters, self-propelled 10 16 2002 84303900 Coali rock cutters, not self-propelled 6 16 2004 84304111 Oil/gas boring machinery,self-propelled.driling depthi 5 6 2000 84304119 Oil/gas boring machinery self-propelled, drilling depth 5 12 2003 84304121 Other boring machinery, nes, self-proplid, dril depthi 5 6 2000 84304122 Boring machinery, self-propid, drill depthi 6000m, cra 5 12 2003 84304129 Other boring machinery, self-propild, dril depthi 6000 5 12 2003 84304190 Sinking machinery, self-propelled 5 15 2004 84304900 Boringi_sinking machinery nes, not self-propelled 5 15 2004 84305010 Other oil production equipment nes, self-propelled 3 12 2004 84305020 Mining shovels, self-propelled 7 18 2004 84305090 Mov/excavat/extractng.machinery. self-propelled, ne 5 15 2004 84306100 Tampingl_compacting machinery, not self-propelled 6 15 2004 84306200 Scrapers, not self-propelled 6 15 2004 84306900 Oth mov/excavat/extractng. machinery nes, not self- 6 16 2001 84311000 Parts of machinery of heading No 84.25 3 7 2001 84312000 Parts of fork-lift & oth works trucks fitted with lifting e 6 8 2000 84313100 Parts of lifts, skip holsti escalators 3 7 2001 84313900 Parts of lifting, handling, loadingl_unloading machine 5 7 2000 84314100 Buckets, shovels, grabs & grips of excavating machi 6 9 2001 84314200 Bulldozer & angledozer blades 6 9 2001 84314310 Parts of oil/gas boring machinery 4 5 2000 84314320 Parts of other boring machinery 4 5 2000 84314390 Parts of sinking machinery 5 7 2000 84314910 Parts of self-propeiled mining shovel 5 5 2000 84314990 Parts nes of machinery of headings Nos. 84.25 to 84 5 7 2000 84321000 Ploughs 5 12 2003 84322100 Disc harrows 5 12 2003 84322900 Scarifiers, cultivators, weeders & hoes 4 12 2003 84323000 Seeders, planters & transplanters 4 12 2003 84324000 Manure spreaders & fertiliser distributors 4 12 2003 84328010 Lawn or sports-ground rollers 7 14 2003 84328090 Oth soil preparation/_cultivation machinery,ne 4 12 2003 84329000 Parts for rollers & oth soll preparationf_cultivation ma 4 6 2000 84331100 Mowers, powered, lawn, with horizontal cutting devic 6 14 2003 84331900 Mowers, powered, lawn, nes 6 14 2003 84332000 Mowers for hay etc incl cutter bars for tractor mounti 4 12 2003 84333000 Hay tedders & rakes & oth haymaking machinery 5 12 2003 84334000 Strawi_fodder balers, including pick-up balers 5 12 2003 84336100 Combine harvester-threshers 8 12 2001 84335200 Threshing machinery nes 8 12 2001 84335300 Rootl_tuber harvesting machines 8 12 2001 84335900 Harvesting machinery nes 8 14 2002 84336000 Mach for cleaning, sortingl_grading eggs, fruitf_oth p 5 12 2003 84339010 Parts of combine harvester-threshers 5 5 2000 84339090 Parts of other machines of heading 84.33 3 8 2002 84341000 Milking machines 10 12 2000 84342000 Dairy machinery 6 12 2002 84349000 Parts of milking machines & dairy machinery 5 7 2000 84 OPCRM/ITS ID:2024825875 APR 14'99 18:38 No 011 P.10 Annex 10: Industrial Tariff Schedule of PRC 04/08/99 Bound Rate Base Rate Year of Hs96prc Description (4/7/99 offer) (10/1/97 mfn) Completion 84734000 Parts/accessories of machines of heading 84.72 10.5 12 2000 84735000 Parts/accessr equaly suitbl for use with 2 machs of 0 12 2003 84741000 Sorting/screening/separating/washing mach for ore/o 5 14 2004 84742000 Crushing/grinding mach for earth/ stone/ores/_oth mi 5 16 2004 84743100 Concretel mortar mixers 7 18 2004 84743200 Mach for mixing mineral substances with bitumen 7 15 2003 84743900 Mixing kneading mach nes for earthi other mineral 5 15 2004 84748000 Mach for agglomeratg minerals fuels/foundry moulds 5 15 2004 84749000 Parts of machinery of heading No. 84.74 5 8 2001 84751000 Machn f assemblg electric lamps/tubes/flashbulbs, in 8 12 2001 84752100 Machines for making optical fibres and preforms ther 10 14 2001 84752900 Mach for manufacturingi hot working glassi glasswa 10 12 2000 84759000 Parts of glass working mach 8 8 2000 84762100 Automatic beverage-vending machine with heatg/refri 14 25 2004 84762900 Automatic beverage-vending machines, nes 15 25 2004 84768100 Oth automatic goods-vending machine with heatg/ref 14 25 2004 84768900 Automatic goods-vending mach, nes 15 25 2004 84769000 Parts of automatic goods-vending machine 10 15 2002 84771010 Injection-moulding mach for working plastics 0 15 2003 84771090 Injection-moulding mach for working rubber 0 15 2003 84772010 Plastic granulators 5 15 2004 84772090 Extruders for working rubberí plastics nes 5 15 2004 84773000 Blow moulding mach for working rubberi plastics nes 5 15 2004 84774000 Vacuum mld mach & oth thermoforming mach to wk rl 5 16 2004 84775100 Machn for mouldg/retreadg pneu tyres/forming inner t 5 14 2004 84775900 Mach for moulding otherwise forming rubberi plasti 5 15 2004 84778000 Mach for working rubberl plasticsi for the mfr of pro 5 15 2004 84779000 Pts of mach for wrkg rubberl plasi for the mfr of pro 0 8 2002 84781000 Machinery for preparingí making up tobacco nes 6 14 2004 84789000 Parts of machinery for preparing making up tobacco 10 12 2000 84791010 Unfold machines for asphalt concrete 8 20 2004 84791090 Machinery for public works, building or the like, nes 8 15 2003 84792000 Machinery for extract/prep of animal or fixed fats or OF 10 14 2001 84793000 Press for making particle/fibre board, for treating WOO 10 14 2001 84794000 Rope or cable-making machines 10 15 2002 84795010 Industrial robots for multiples uses 0 14 2003 84795090 Industrial robots, nes 0 14 2003 84796000 Evaporative air coolers 10 14 2001 84798100 Machines for treating metal 9.5 14 2002 84798200 Machines for mixing/kneading/crushing/grinding. etc 10 14 2001 84798910 Steering/rudder equipt or gyrostabilizers for ships 0 8 2002 84798920 Air humidifiers or dehumidifiers 0 25 2005 84798940 Machines for sorting malled packages or printed matti 0 10 2002 84798950 Machines for squeezing radloactive waste 0 5 2001 84798990 Mach & mechanical appliances having individual func 0 18 2004 84799010 Parts of steering/rudder equipt or gyrostabilizers for Si 0 6 2002 84799020 Parts of air humidifiers or dehumidifiers 0 20 2004 84799090 Parts of other machines/appliances of heading 84.79, 0 8 2002 84801000 Boxes, moulding, for metal foundry 10 10 2000 91 MEMORANDUM TO: Gene Sperling Lael Brainard Holly Hammonds Malcolm Lee FR: Matt Schaefer DT: April 16, 1999 RE: Initial Background Materials for May 7th Valenti Meeting Attached are the materials that Bonnie Richardson of MPAA left with Holly and I at our meeting with her. The main issues for MPAA roughly six-eight weeks ago were as follows: 1) China WTO Accession; and 2) Optical Media Piracy (particularly in Malaysia). USG's Special 301 annual listing of countries with poor intellectual property protection regimes will be released April 30 so that might be an additional item of interest. OPTICAL DISC PIRACY IN ASIA: MALAYSIA BACKGROUND: THE ASIAN CONTEXT MPA member companies are suffering catastrophic losses due to optical disc piracy throughout Asia. MPA member companies' home video revenues declined almost 60% last year. The member companies' home video business is being totally destroyed, suffering a decline of almost 60% in Malaysia from 1997 to 1998 over the first nine months. Additionally, the ability of our titles to enjoy economic success at the box office is undermined by the fact that the pirate optical disc versions are available on the streets of Asia before they open at local theaters. MPA member company titles are available in VCD format within two weeks of U.S. theatrical release in all cases, sometimes even sooner. VCDs of "Saving Private Ryan" were seized in Malaysia before the theatrical release in the U.S. Moreover, the pirates seriously erode that earning potential by producing vast quantities these discs at low prices. Please note the figures for Malaysia below where pirate product is offered to the market at 20-25% of the price for legitimate product. These losses are felt throughout the industry since the attack of the pirates begin as soon as a motion picture is released in theatrical format in the United States. It affects the entire family of entertainment products and seriously degrades the picture's potential for generation of revenue. There is heavy cross-border traffic in pirate discs in every country in the region. Within the region, almost 100 percent of the pirated optical discs seized in Indonesia and Singapore originate from Malaysia. The pirates in Malaysia blatantly advertise that they will deliver free to consumers in Singapore with the purchase of 30 or more pirated discs. It is beginning to affect markets in other parts of the world. The Asia/Pacific region has nearly 900 production lines installed in over 300 factory locations. Each production line has a capacity for producing 3.5 million discs annually. The over-capacity of production lines in the region is so large that excess discs are shipped all over the world including the United States, England, France, Germany, Canada, Latin America and South Africa. Seizures of pirate discs by law enforcement authorities in Asia amounted to 42,842,124 million discs in 1998. These authorities generally concede that they RH/MALAYSIA/1-31-99 are intercepting only a small percentage of the discs being shipped around the region and the world. MALAYSIA (population 17.05 million) There are 22 known optical disc factories with approximately 90 production lines, representing an annual production capacity of 315 million discs, far in excess of the demand generated by the local VCD player population (estimated to be in the 300,000-500,000 range). Ineffective government enforcement when piracy is encountered from these factories. Very weak sentencing which offers no deterrence. Fines being handed down are equivalent to those handed down for traffic offenses. Known export patterns to at least 5 other countries as well as Europe and South America. Judicial roadblocks and evidentiary burdens in place for foreign copyright interests. The recent court decision requiring the execution and transmittal of affidavits by "officers" of our member companies increases the costs for our companies, causes additional delays in the court process and raises the specter that these corporate officers will be forced to fly to Malaysia to give testimony in court for each case in which member company titles are implicated. Considering the fact that 798 raids were conducted in 1998 alone, this burden will prove to be awesome for our companies. The Scorecard for Malaysia: Production Capacity: Production Capacity: 22 plants with a total of 90 lines (315 million discs a year). - Domestic requirements: Based on the optical disc player population, existing demand could be serviced by 4 factories with 8 lines (28 million discs a year). Excess capacity: 18 factories, 82 lines (287 million discs a year). Enforcement: Total retail raids 1997/98: 1,584 Number of factory raids 97/98: 6 RH/MALAYSIA/1-31-99 Number of raids in which seized equipment was returned to the factory owner: 4 - Number of raids in which the authorities refused to seize the equipment: 1 - That leaves only 1 out of 6 raids in which the equipment was seized and still remains in police custody. - Seizures of pirate discs in 1997: 777,611 - Seizures of pirate discs in 1998: 1,113,639 - Total convictions in 1997: 179 - Total convictions in 1998: None Sentence/Fines - 1997: Fine from US$13.15 to US$3,684 - 1998: None No convictions were obtained in MPA cases during 1998. Except for one optical disc factory case, the highest fine in 1997 was Malaysian Ringgit (MR) 6,000 (U.S. $ 1,579 at the current exchange rate) which was just a little over MR 1 for each of the 5,871 pirated VCDs seized in the raid. On the other hand, the Malaysian Copyright Act allows for a fine of MR 10,000 per infringing copy. Cost Comparison - The impact on legitimate business in the market caused by unchecked distribution of pirate discs can be measured by these market price comparisons: - Cost of legal VCD in Malaysia: U.S. $7.86 to US $10.50 - Cost of pirate VCD in Malaysia: U.S. $2.00 - Legitimate distributors are required to pay US$ 0.52 for a censorship sticker for our legitimate product. Conclusion RH/MALAYSIA/1-31-99 We simply cannot compete in a country where pirates operate with impunity and possess the capability to completely dominate the market without fear of government sanction. RH/MALAYSIA/1-31-99, ACTION REQUESTED: MPAA urgently requests the USG to place the Anti- Piracy Bill on the list of issues Italy should clear out of the way before Prime Minister D'Alema's meeting with President Clinton on March 5. MPA is asking the US government to place the issue on the agenda for the Clinton - D'Alema set for March 5, if the Bill has not been passed prior to the meeting. By placing the bill on the agenda, the USG could provide the incentive necessary to get this bill is reported out of Committee and brought to a vote in the full Chamber. BACKGROUND: Passage of the "Anti-Piracy Bill," an amendment to the Italian copyright law that would increase criminal penalties for copyright piracy, has been one of MPA's top priorities in Europe since the first such bill was introduced in the fall of 1994. Successive governments of the right and the left have supported this legislation, but never given it sufficiently high priority to ensure it's passage. The bill passed the Senate last year, but remains pending in the Justice Committee of the Chamber of Deputies. The Justice Committee has approved half the articles, but the Bill has been postponed repeatedly over the past month and now seems to be stuck in Committee. Discussion of the remaining articles has been re-scheduled for Wednesday, March 24. We don't believe there is strong opposition to the bill. We simply fear that the D'Alema government is not giving this Bill high priority, so other priorities keep bumping discussion of the Bill. President Clinton raised the need to pass a strong Anti-Piracy Bill with the former Italian Prime Minister Prodi during a meeting at the White House in May 1998. The President's raising the issue was instrumental in ensuring that the increased criminal penalties remained in the Bill. From that meeting forward, the Prodi Government solidly supported passage of the Anti-Piracy Bill and provided the leadership necessary to ensure adoption of the bill by the Senate. Unfortunately, after the change in Government in October, the new D'Alema Government does not appear to place the same, high priority on passage of this bill. As a result, the bill languishes in the Chamber. Our window of opportunity is closing very fast. With a referendum on election issues and an upcoming Presidential election later this spring, if the Anti-Piracy Bill doesn't get out of Committee very soon, as in during the last week of February or very early March, there will be no time to bring it before the Chamber. ANOTHER year will be lost. STATEMENT BY BONNIE J. K. RICHARDSON VICE PRESIDENT, TRADE AND FEDERAL AFFAIRS ON BEHALF OF THE MOTION PICTURE ASSOCIATION 1600 EYE STREET NW WASHINGTON, DC 20002 202-293-1966 February 23, 1999 ITC INVESTIGATION NO. 322-403 Assessment of the Economic Effects on the United Statés of China's Accession to the WTO Bonnie J. K Richardson SUBMISSION BY THE MOTION PICTURE ASSOCIATION ITC INVESTIGATION NO. 322-403 Assessment of the Economic Effects on the United States of China's Accession to the WTO The Motion Picture Association is a trade association representing seven of the largest producers and distributors of filmed entertainment (theatrical motion pictures, television programming and home video) in the United States. Its members include Buena Vista International, Inc. (The Walt Disney Company), Columbia TriStar Film Distributors International, Inc., Metro-Goldwyn-Mayer Inc., Paramount Pictures Corporation, Twentieth Century Fox International Corporation, Universal International Films, Inc., and Warner Bros. International Theatrical Distribution. MPA SUPPORTS CHINA WTO ACCESSION: MPA strongly supports China's accession into the World Trade Organization. MPA believes that it would be substantially more effective for the U.S. and China to manage their trade relationship from within the agreed standards of the global trading community. However, it is important as part of the accession process that China agrees to improve access to its market in sectors that are important to the U.S. economy - including the filmed entertainment sector. ECONOMIC IMPORTANCE OF THE FILM INDUSTRY: The U.S. copyright-based industries, which include the motion picture, sound recording, computer software, and book industries, were America's number one export sector in 1996. These industries together achieved foreign sales and exports of $60.18 billion, surpassing every other export sector, including automotive, agriculture and aircraft. The U.S. filmed entertainment industry alone earned about $12 billion in foreign revenues in 1997, 40% of the total revenues earned by the U.S. film industry. 1 Siwek, Stephne E. and Mosteller, Gale, Economists Incorporated, "Copyright Industries in the U.S. Economy: The 1998 Report," prepared for the International Intellectual Property Alliance, 1998. ECONOMIC IMPACT OF FILMED ENTERTAINMENT BARRIERS: MPA member companies currently face serious market access problems in China. These market access barriers have severely limited the size of U.S. filmed entertainment exports to China. Total U.S. revenues earned in China in 1997 were only around $18 million. We conservatively estimate that losses due to restrictions in import and distribution of motion pictures cost the U.S. industry at least $80 million annually. This estimate does not include the potential growth in the export of filmed entertainment, if the infrastructure were significantly expanded, for example, through liberalization of foreign investment in cinemas or broadcast, cable or satellite television. In addition to the losses resulting from market access restrictions, the U.S. filmed entertainment industry lost $120 million to piracy in China last year. To address these problems, U.S. negotiators must address three different areas of the negotiations on China's accession to the World Trade Organization: the General Agreement on Trade in Services (GATS), the General Agreement on Tariffs and Trade (GATT), and Trade Related Intéllectual Property (TRIPs). SERVICES BARRIERS IN THE GATS: The theatrical sectors, the distribution and exhibition of motion pictures in cinemas, is particularly burdened by serious market access restrictions in China. MPA is not seeking immediate abolition of all barriers in these negotiations, but does want to see progress toward liberalization of these barriers in the WTO accession negotiations. Limitations on import of foreign films. The Chinese government has yet to relax its restrictions on import of foreign films under revenue sharing² conditions. There is a de facto limitation of 10 films per year on the first- run films that may be brought into China under revenue-sharing conditions. MPA's goals in the accession negotiations are to secure a gradual increase in the number of films. 2 Revenue-sharing refers to the commercial terms that are the industry standard for MPA member companies. Under "revenue sharing" the distributor and the cinema owner negotiate the percentage of the box office receipts each will receive, such as a 50/50 split. 2. Government Monopoly on Import and Distribution of Films: Government corporations control all aspects of the import and internal distribution of films in China. China Film Export and Import Corporation controls the import of films. China Film Distribution and Exhibition Bureau in China and its regional subsidiaries own the majority of the cinemas and dictate the contractual terms, play dates, admission prices and other aspects of film exhibition. In most markets, MPA member companies choose to distribute their films directly. MPA's goals for the WTO accession negotiations in China are much more modest an increase in the number of Chinese distribution companies involved in the distribution of U.S. major company films. By expanding the number of distributors, both the U.S. and the Chinese film industries will benefit from the increased efficiencies of competition. Cinema ownership: Commitments to allow foreign investment in cinemas could help build up the infrastructure and expand the total market for motion pictures in China - for US films, as well as Chinese films. At present, foreigners are not permitted to own or operate cinemas in China. Some foreign equity participation has been authorized for renovation of cinemas in several major cities on a trial basis only. Foreign investors have also been involved as minority partners in construction of mini-malls that include cinemas - but again, as an exception, rather than the rule. China remains one of the more under-screened markets in the world. There are about 3000 cinemas exclusively dedicated to exhibition of motion pictures. In addition, there are approximately 7000 others theaters that exhibit motion pictures on a part-time basis; included in this number are theaters that also host live exhibitions (dance, concerts, opera) and theaters that serve specialized clientele, such as the workers in a large factory, rather than the general public. The ratio of screens per person is only 1 screen per 122,000. This compares to a total of 30,825 screens in the United States and a ratio of screens per person of 1 per 8,600 people. MPA's goal in the WTO negotiations is to secure the ability for foreigners to participate in joint ventures for construction and renovation of motion picture theaters. Lengthy Censorship Procedures: The process for obtaining censorship decisions, especially for motion pictures, can require several 3 months. MPA sees an "additional commitment" specifying that censorship will be handled expeditiously, normally in 15 days. Market Access Barriers for Television Programming: Foreign programming is restricted to 25% of total air-time for broadcast stations. In addition, the broadcast of foreign programming is limited to no more than 40 minutes of prime time between 6 pm and 10:00 pm. The government acquisitions authority, China International Television Corporation, must approve import of foreign programming. GATT TARRIF BINDINGS: China remains among the world's least profitable markets for theatrical distribution due to its heavy burden of taxes and import duties. The WTO negotiations can help address the import duty problem. MPA seeks tariff bindings for cinematographic film and recorded magnetic tape for television programming and home videos, as well as bindings on new optical media products, such as Digital Video Discs and Video Compact Discs. Although the tariff levels are not thought to be particularly high, MPA companies are concerned about the valuation method for assessing those duties. Prevailing world practice is to value films on the basis of the "material substrate." U.S. duties, for example, are expressed in terms of cents per meter of film, or, in the case of optical media products, on the value of the blank diskette. Chinese valuation practices remain unclear. TRIPS: Since 1996 China achieved a remarkable record for stemming the unauthorized reproduction and halting the export of Video Compact Discs and other forms of pirated optical media products. China's domestic market, however, continues to be plagued with extremely high levels of piracy - 90 percent for home video entertainment in 1998. Based on China's record for combating export piracy and the good working relationship that MPA has developed with China's copyright enforcement authorities, MPA is confident that China can make rapid progress in significantly lowering domestic piracy rates to meet TRIPS standards. 4 IC INTELLEN RETURN TO APNS MPA LH MS Fyl MOTION PICTURE ASSOCIATION Audiovisual Entertainment For Global Audiences JACK VALENTI CHAIRMAN November 9. 1998 1600 EYE STREET. NW AND CHIEF EXECUTIVE OFFICER WASHINGTON. D.C. 20006 TELEPHONE: 202/293-1966 TELECOPIER 202/452-9823 Dear Sandy As you know, the Senate in early November ratified the World Intellectual Property Organization treaty which over 100 nations. created in December 1996 in Geneva. The ratification process must now be given new velocity in other countries throughout the world. The MPA, in concert with the Recording Industry of America and computer software associations, are now in the field trying to persuade these nations to immediately ratify the Treaty and provision it with their own implementing language, as our 105th Congress did. I attach a brief memorandum which outlines the benefits of ratification, a strategy for gaining ratification, and some suggestions as to how the U.S. government can be of indispensable value in achieving global commitments. I hope I can have a chance to discuss this with you or whomever you designate. This Treaty is of singular importance, and this opportunity must not be lost. warmg Attachment The Honorable Samuel R. Berger Assistant to the President an for National Security Affairs The White House Washington, DC 20500 ENSURING WORLDWIDE RATIFICATION OF THE WIPO TREATIES In 1996, over 100 nations created two new treaties to combat the threat of intellectual property theft in the 21st Century -- the WIPO COPYRIGHT TREATY, and the WIPO PERFORMANCES AND PHONOGRAMS TREATY - together, the WIPO TREATIES. Once the WIPO TREATIES go into force creators, performers, producers and the public will benefit fully from the development of new means of disseminating creative works. The United States ratified both treaties in October 1998. U.S. ratification and implementation will be a hollow victory without worldwide ratification and enforcement. Before the treaties can go into force, thirty nations must ratify each treaty. As of November 1998, seven countries had ratified the COPYRIGHT TREATY, while five had ratified the PERFORMANCES AND PHONOGRAMS TREATY. The international copyright community has committed itself in ensuring that both treaties go into force by January 1, 2000. This short memorandum outlines the basic reasons the Treaties should be ratified and enter into force; the global strategy the international copyright community has adopted to fulfill this goal; and the ways the U.S. Government can assist in achieving this goal. I. The Benefits of Ratification The benefits of ratification of the WIPO TREATIES are significant, especially to the hundreds of thousands of US citizens employed in the international copyright industries. These benefits include: Fostering the conditions that will maximize the growth of national and international creative industries - including publishing, music, recording, film and video, and computer software Creating new economic opportunities for citizens in these industries, as creators, employees, distributors, skilled technicians and entrepreneurs Maximizing the access of all citizens to a rich environment of information, entertainment and educational materials Integrating economies into the global marketplace of the 21ˢᵗ century, thereby attracting investment and development in these dynamic business sectors Once 30 nations have ratified the Treaties, they will go into force. Going into force will require all ratifying nations to ensure that foreign and domestic works are provided the same level of protection. Ratification and implementation can be done through upgrading a country's copyright laws to the standards of the Treaties. For some countries, only minor changes are needed; for others, more substantial revisions are required. Once the treaties go into force, each country will have: Established the legal framework to enable creators, performers and producers to control the use of their property in electronic commerce, regardless of the means used to make these products available; Put strong legal protections in place for technologies that prevent unauthorized access to, or use of, creative products, and implemented tough prohibitions against high-tech copyright piracy; and, Determined the legal responsibility of parties for piracy that takes place in the electronic marketplace, according to international norms. II. The Strategy for Ratification The international copyright community has established a global strategy to ensure that the WIPO TREATIES go into force by January 1, 2000. An international steering committee comprised of the film, recording and software industries, organized by the International Intellectual Property Alliance, has been established to coordinate the ratification effort. The international steering committee is being assisted through four regional steering committees in Europe, Asia-Pacific, Latin America and the CIS/Africa/Middle East. In turn, each regional steering committee has appointed country coordinators in targeted countries to work with local copyright industries and policymakers to assist in ratifying and implementing the Treaties. The steering committees are working with WIPO to educate policymakers on the importance of speedy ratification and implementation of the Treaties. WIPO has been hosting regional seminars to discuss how countries should ratify and implement the Treaties. The steering committee members have been active participants in these seminars. In addition, these committees are working with other organizations to complete ratification and accession. The European regional steering committee is working with the EU to ensure adoption of the treaties among the Member States and future accession countries. The steering committees and the country coordinators have been instrumental in assisting individual countries in drafting ratification instruments and implementing legislation. So far, at least 15 countries have submitted ratification instruments to their legislatures. The steering committees have identified at least 50 countries where it is believed there is a realistic chance for ratification before January 1, 2000. III. How the U.S. Government Can Assist Already, the U.S. Government has promoted ratification and implementation of the WIPO TREATIES. Obviously, the treaties would not have been adopted without the tireless work of the U.S. Government. The successful treaty ratification efforts in countries like Hungary and El Salvador benefited by U.S. Government support and involvement. With ratification and the implementing legislation now complete in the U.S., it would be crucial for the U.S. Government now to focus its attention on international ratification and implementation. The next step would be for the U.S. Government to appoint liaisons from key government agencies to work with the international steering committee. Next, embassy officials in certain countries should be selected and designated to work with the regional steering committees. In addition, the U.S. Government should work with international organizations, including WIPO, to offer assistance in the ratification and implementation efforts. The international copyright community stands ready to assist the U.S. Governments in our shared goal of ensuring the entry into force of the WIPO TREATIES before the next Millennium. THE NEED FOR WORLDWIDE RATIFICATION OF THE WIPO TREATIES We all stand on the threshold of an exciting new phase of economic development: the global marketplace of electronic commerce. This marketplace promises greater access to works of authorship that will enhance our productivity, advance our education, entertain our families, and enrich our lives. This marketplace offers growth and opportunity for creative industries worldwide. However, electronic commerce can thrive only if we respect the property rights of others. A plague of piracy - theft of intellectual property - threatens to blight this new marketplace. In 1996, over 100 nations created two new treaties to combat this threat. Countries that ratify the WIPO COPYRIGHT TREATY, and the WIPO PERFORMANCES AND PHONOGRAMS TREATY, will ensure that their creators, performers, producers and public benefit fully from the development of new means of disseminating creative works. These benefits include: Fostering the conditions that will maximize the growth of national creative industries - including publishing, music, recording, film and video, and computer software; Creating new economic opportunities for citizens in these industries, as creators, employees, distributors, skilled technicians and entrepreneurs; Maximizing the access of citizens to a rich environment of information, entertainment and educational materials; and Integrating economies into the global marketplace of the 21st century, thereby attracting investment in these dynamic business sectors. To implement these treaties, countries need to upgrade their copyright laws to the standards of the treaties. For some countries, only minor changes are needed; for others, more substantial revisions are required. Once implementation is complete, each country will have: Established the legal framework to enable creators, performers and producers to control the use of their property in electronic commerce, regardless of the means used to make these products available; Put strong legal protections in place for technologies that prevent unauthorized access to, or use of, creative products, and implemented tough prohibitions against high-tech copyright piracy; Determined the legal responsibility of parties for piracy that takes place in the electronic marketplace. Ratification of the WIPO treaties is a vote of confidence in the future. Several countries have already cast that vote, most recently Hungary and the United States. Thirty nations must ratify each treaty before it goes into force; to be effective globally, every major country must ratify the treaties. 2 Put strong legal protections in place for technologies that prevent unauthorized access to, or use of, creative products, and implemented tough prohibitions against high-tech copyright piracy; and, Determined the legal responsibility of parties for piracy that takes place in the electronic marketplace, according to international norms. II. The Strategy for Ratification The international copyright community has established a global strategy to ensure that the WIPO TREATIES go into force by January 1, 2000. An international steering committee comprised of the film, recording and software industries, organized by the International Intellectual Property Alliance, has been established to coordinate the ratification effort. The international steering committee is being assisted through four regional steering committees in Europe, Asia-Pacific, Latin America and the CIS/Afriça/Middle East. In turn, each regional steering committee has appointed country coordinators in targeted countries to work with local copyright industries and policymakers to assist in ratifying and implementing the Treaties. The steering committees are working with WIPO to educate policymakers on the importance of speedy ratification and implementation of the Treaties. WIPO has been hosting regional seminars to discuss how countries should ratify and implement the Treaties. The steering committee members have been active participants in these seminars. In addition, these committees are working with other organizations to complete ratification and accession. The European regional steering committee is working with the EU to ensure adoption of the treaties among the Member States and future accession countries. The steering committees and the country coordinators have been instrumental in assisting individual countries in drafting ratification instruments and implementing legislation. So far, at least 15 countries have submitted ratification instruments to their legislatures. The steering committees have identified at least 50 countries where it is believed there is a realistic chance for ratification before January 1, 2000. III. How the U.S. Government Can Assist Already, the U.S. Government has promoted ratification and implementation of the WIPO TREATIES. Obviously, the treaties would not have been adopted without the tireless work of the U.S. Government. The successful treaty ratification efforts in countries like Hungary and El Salvador benefited by U.S. Government support and involvement. With ratification and the implementing legislation now complete in the U.S., it would be crucial for the U.S. Government now to focus its attention on international ratification and implementation. The next step would be for the U.S. Government to appoint liaisons from key government agencies to work with the international steering committee. Next, embassy officials in certain countries should be selected and designated to work with the regional steering committees. In addition, the U.S. Government should work with international organizations, including WIPO, to offer assistance in the ratification and implementation efforts. The international copyright community stands ready to assist the U.S. Governments in our shared goal of ensuring the entry into force of the WIPO TREATIES before the next Millennium. Monitoring Program: $500,000 to support IPEC's implementation of an external monitoring system to ensure the effectiveness of child labor projects in the region. P.4 FEB 11 '99 03:02PM U.S DEPARTMENT OF LABOR/ILAB MPA MOTION PICTURE ASSOCIATION Audiovisual Entartainment For Global Audiences JACK VALENTI 1600 EYE STREET, NW CHAIRMAN AND CHIEF EXECUTIVE OFFICER Feb. 8'99 WASHINGTON. D.C. 20006 TELEPHONE: 202/293-1966 TELECOPIER: 202/452-9823 Den Sandy d want you to see All letter D have despatched to Charlene at USTR. Ohana, and MPA MOTION PICTURE ASSOCIATION Audiovisual Entertainment For Global Audiences JACK VALENTI CHAIRMAN February 8, 1999 1600 EYE STREET, NW AND CHIEF EXECUTIVE OFFICER WASHINGTON, D.C. 20006 TELEPHONE: 202/293-1966 TELECOPIER 202/452-9823 Dear charlene I understand negotiations for China's entrance into the WTO are nearing the finish line. I put this as honestly and as candidly as I can: The motion picture industry cannot be thrown over the side as we were in GATT, as we were in Canada. In order for China's WTO admittance, there must be confirmable commitments by China to allow us access to their marketplace, which is now severely restricted. I attach a two-year plan which I presented to high-stationed officials in the Chinese government. No response. That two-year plan is the minimum our government should insist as part of China's entry into WTO. Anything less is just unacceptable. Intellectual Property produces more international revenues than aircraft, than autos and auto parts, than agriculture. China cannot be allowed entry into WTO with current restrictions in place. It makes a mockery of trade doctrine. I need your help! The Honorable Charlene Barshefsky United States Trade Representative warmly Winder Building 600 17th St., NW Washington, DC 20506 on A Specific Two-Year Plan for China/US Cinema Cooperation: June, 1998 to June, 2000. 1. Gradually increase number of films from the seven major U.S. film companies over the next two years. From June, 1998 to June, 1999, a total of 17 films to be imported into China. From June, 1999 to June, 2000, a total of 25 films. In June, 2000, China and the U.S. film industries to analyze the marketplace, to prepare for the next two years. 2. Increase the number of Chinese distribution companies involved in the distribution of U.S. major company films to at least two distribution entities, more if possible. By enlarging the number of distributors, China's film industry benefits from expanded performance and knowledge of how exhibition and marketing work. 3. China and the U.S. industry should discuss how to reduce the high taxation on American films in China. 4. U.S. companies will assist the Chinese film industry in training in production, marketing and distribution, if China finds this useful. This training would include interns working with American companies to learn the latest techniques in marketing and distribution. The U.S. industry will advise China on how to help young Chinese film- makers enroll in and study at the best film schools. U.S. companies will assist the Chinese film industry in training in the new technology, digital, the Internet, satellite delivery and cable. 5. China and the U.S. industries plan together as to how best to involve each other in the co-production of films. 6. The American industry to showcase Chinese films through film festivals in 1998 and 1999 in the United States. SOME FACTS ABOUT Chinese/American film industries: In the last four years, the seven major U.S. companies have been allowed to exhibit a total of 28 films in China. The total box-office for these films was $115 million. Note: TITANIC is still in exhibition so that total box-office number will rise. Due to taxes and expenses, the U.S. companies have been able to retrieve only 12-15% in revenues from these films. In the US. more than 90% of all theaters are owned by independent businessmen with no connections to the major studios. Theater owners exhibit films they believe will attract paying audiences to their theater. That is their sole objective. New opportunities are opening up for exhibition of Chinese (and other non-English language films) on American cable systems and on satellite-to-home delivery of entertainment product. Making and distributing movies is a very risky business. Of every ten movies released theatrically by the American companies, only four actually make a profit. file D THE WHITE HOUSE WASHINGTON January 21, 1999 Dear Jack: I appreciate your sending me a print of "Stagecoach," which the President is forwarding to Jiang Zemin. In his letter to Jiang, the President urged him to open China's market to American films. I will let you know should we hear anything back from President Jiang or his people on this. We stand ready to provide you whatever help we can in your continuing efforts to open China's market and protect the intellectual property rights of our creative people in the film industry. Sincerely, Aanoy Berger Samuel R. Berger Assistant to the President for National Security Affairs Mr. Jack Valenti President and Chief Executive Officer Motion Picture Association of America, Inc. 1600 Eye Street, N.W. Washington, D.C. 20006 FRITZ Bonuel aln to Co.reps. STATEMENT BY BONNIE J. K. RICHARDSON VICE PRESIDENT, TRADE AND FEDERAL AFFAIRS ON BEHALF OF THE MOTION PICTURE ASSOCIATION 1600 EYE STREET NW WASHINGTON, DC 20002 202-293-1966 February 23, 1999 ITC INVESTIGATION NO. 322-403 Assessment of the Economic Effects on the United Statés of China's Accession to the WTO Bonnie J.K Richardson SUBMISSION BY THE MOTION PICTURE ASSOCIATION ITC INVESTIGATION NO. 322-403 Assessment of the Economic Effects on the United States of China's Accession to the WTO The Motion Picture Association is a trade association representing seven of the largest producers and distributors of filmed entertainment (theatrical motion pictures, television programming and home video) in the United States. Its members include Buena Vista International, Inc. (The Walt Disney Company), Columbia TriStar Film Distributors International, Inc., Metro-Goldwyn-Mayer Inc., Paramount Pictures Corporation, Twentieth Century Fox International Corporation, Universal International Films, Inc., and Warner Bros. International Theatrical Distribution. MPA SUPPORTS CHINA WTO ACCESSION: MPA strongly supports China's accession into the World Trade Organization. MPA believes that it would be substantially more effective for the U.S. and China to manage their trade relationship from within the agreed standards of the global trading community. However, it is important as part of the accession process that China agrees to improve access to its market in sectors that are important to the U.S. economy - including the filmed entertainment sector. ECONOMIC IMPORTANCE OF THE FILM INDUSTRY: The U.S. copyright-based industries, which include the motion picture, sound recording, computer software, and book industries, were America's number one export sector in 1996. These industries together achieved foreign sales and exports of $60.18 billion, surpassing every other export sector, including automotive, agriculture and aircraft. 1 The U.S. filmed entertainment industry alone earned about $12 billion in foreign revenues in 1997, 40% of the total revenues earned by the U.S. film industry. I Siwek, Stephne E. and Mosteller, Gale, Economists Incorporated, "Copyright Industries in the U.S. Economy: The 1998 Report," prepared for the International Intellectual Property Alliance, 1998. ECONOMIC IMPACT OF FILMED ENTERTAINMENT BARRIERS: MPA member companies currently face serious market access problems in China. These market access barriers have severely limited the size of U.S. filmed entertainment exports to China. Total U.S. revenues earned in China in 1997 were only around $18 million. We conservatively estimate that losses due to restrictions in import and distribution of motion pictures cost the U.S. industry at least $80 million annually. This estimate does not include the potential growth in the export of filmed entertainment, if the infrastructure were significantly expanded, for example, through liberalization of foreign investment in cinemas or broadcast, cable or satellite television. In addition to the losses resulting from market access restrictions, the U.S. filmed entertainment industry lost $120 million to piracy in China last year. To address these problems, U.S. negotiators must address three different areas of the negotiations on China's accession to the World Trade Organization: the General Agreement on Trade in Services (GATS), the General Agreement on Tariffs and Trade (GATT), and Trade Related Intellectual Property (TRIPs). SERVICES BARRIERS IN THE GATS: The theatrical sectors, the distribution and exhibition of motion pictures in cinemas, is particularly burdened by serious market access restrictions in China. MPA is not seeking immediate abolition of all barriers in these negotiations, but does want to see progress toward liberalization of these barriers in the WTO accession negotiations. Limitations on import of foreign films. The Chinese government has yet to relax its restrictions on import of foreign films under revenue sharing² conditions. There is a de facto limitation of 10 films per year on the first- run films that may be brought into China under revenue-sharing conditions. MPA's goals in the accession negotiations are to secure a gradual increase in the number of films. 2 Revenue-sharing refers to the commercial terms that are the industry standard for MPA member companies. Under "revenue sharing" the distributor and the cinema owner negotiate the percentage of the box office receipts each will receive, such as a 50/50 split. 2 Government Monopoly on Import and Distribution of Films Government corporations control all aspects of the import and internal distribution of films in China. China Film Export and Import Corporation controls the import of films. China Film Distribution and Exhibition Bureau in China and its regional subsidiaries own the majority of the cinemas and dictate the contractual terms, play dates, admission prices and other aspects of film exhibition. In most markets, MPA member companies choose to distribute their films directly. MPA's goals for the WTO accession negotiations in China are much more modest -- an increase in the number of Chinese distribution companies involved in the distribution of U.S. major company films. By expanding the number of distributors, both the U.S. and the Chinese film industries will benefit from the increased efficiencies of competition. Cinema ownership: Commitments to allow foreign investment in cinemas could help build up the infrastructure and expand the total market for motion pictures in China - for US films, as well as Chinese films. At present, foreigners are not permitted to own or operate cinemas in China. Some foreign equity participation has been authorized for renovation of cinemas in several major cities on a trial basis only. Foreign investors have also been involved as minority partners in construction of mini-malls that include cinemas - but again, as an exception, rather than the rule. China remains one of the more under-screened markets in the world. There are about 3000 cinemas exclusively dedicated to exhibition of motion pictures. In addition, there are approximately 7000 others theaters that exhibit motion pictures on a part-time basis; included in this number are theaters that also host live exhibitions (dance, concerts, opera) and theaters that serve specialized clientele, such as the workers in a large factory, rather than the general public. The ratio of screens per person is only 1 screen per 122,000. This compares to a total of 30,825 screens in the United States and a ratio of screens per person of 1 per 8,600 people. MPA's goal in the WTO negotiations is to secure the ability for foreigners to participate in joint ventures for construction and renovation of motion picture theaters. Lengthy Censorship Procedures: The process for obtaining censorship decisions, especially for motion pictures, can require several 3 months. MPA sees an "additional commitment" specifying that censorship will be handled expeditiously, normally in 15 days Market Access Barriers for Television Programming: Foreign programming is restricted to 25% of total air-time for broadcast stations. In addition, the broadcast of foreign programming is limited to no more than 40 minutes of prime time between 6 pm and 10:00 pm. The government acquisitions authority, China International Television Corporation, must approve import of foreign programming. GATT TARRIF BINDINGS: China remains among the world's least profitable markets for theatrical distribution due to its heavy burden of taxes and import duties. The WTO negotiations can help address the import duty problem. MPA seeks tariff bindings for cinematographic film and recorded magnetic tape for television programming and home videos, as well as bindings on new optical media products, such as Digital Video Discs and Video Compact Discs. Although the tariff levels are not thought to be particularly high, MPA companies are concerned about the valuation method for assessing those duties. Prevailing world practice is to value films on the basis of the "material substrate." U.S. duties, for example, are expressed in terms of cents per meter of film, or, in the case of optical media products, on the value of the blank diskette. Chinese valuation practices remain unclear. TRIPS: Since 1996 China achieved a remarkable record for stemming the unauthorized reproduction and halting the export of Video Compact Discs and other forms of pirated optical media products. China's domestic market, however, continues to be plagued with extremely high levels of piracy - 90 percent for home video entertainment in 1998. Based on China's record for combating export piracy and the good working relationship that MPA has developed with China's copyright enforcement authorities, MPA is confident that China can make rapid progress in significantly lowering domestic piracy rates to meet TRIPS standards. 4 04/16/99 FRI 16:11 FAX 202 647 4402 EAP J 5. 001 United States Department of State Washington, D.C. 20520 Office of Japan Affairs Room 4206 Fax Cover Sheet Fax No. (202) 647-4402 Date: 4/16/99 TO: Malcolm Lee Phone No.: Fax No.: 456-9290 FROM: Hanscom Smith Phone No.: 647-4459 No. of pages including cover sheet: 5 MESSAGE: Draft opening statement for LB at Subcabinet - cleared uf.n State. UNCLASSIFIED FAX 04/16/99 FRI 16:11 FAX 202 647 4402 EAP J 002 U.S.- Japan Subcabinet Meeting Opening Statement by Lael Brainard Welcome to Arlington Hall. A few weeks ago, an incident riveted the nation's attention on Washington, centering on an important aspect of US-Japan relations. A family of beavers was chewing down the cherry trees - the national cherry trees - donated by Japan that have become the symbol of Washington in spring. Fortunately, our National Park Service captured them, one by one, so the Government saved the trees and reunified the family of beavers. Today we deal with another important aspect of US- Japan relations, the economic and trade relationship. Sometimes we cannot escape the tyrannies of our schedules; I am sorry we could not make the first date we had set. I am delighted we were able to reschedule for today. We have had extensive discussions in the last few days on insurance and deregulation, so this meeting comes at an extremely important time, and will help us set up the visit next month of the Prime Minister. 04/16/99 FRI 16:11 FAX 202 647 4402 EAP J 003 We share a common goal in ensuring a successful summit. Today, our goal is to evaluate where we are now and where we need to be next month. At the summit, the President will make crystal clear that our partnership to promote global peace and prosperity requires an economically strong Japan. The leaders will discuss our economic and trade relationship. Our job today is to enable them to do this in the most positive way possible. We are not going to negotiate the specific items on our trade agenda, but we do want to identify those areas where more needs to be done, and to outline desirable outcomes. The President will ask Japan's help to support the free trade system and hold off protectionism. He will emphasize that the US cannot be the market of only resort. The steel issue is instructional for all of us. Even with the US economy booming, trade issues can develop virtually overnight and acquire tremendous momentum of their own. Today, we have the chance to explore fresh, creative solutions to resolve current problems and set the stage for a successful summit. 04/16/99 FRI 16:11 FAX 202 647 4402 EAP J 004 I'd like to invite Mr. Haraguchi to make some remarks, as well as other members of the Japanese delegation who may be interested in speaking. I will then turn to Robert Lawrence to make some general comments that will set the tone for the discussions we plan this afternoon and tonight at dinner. Although we have a lot of ground to cover in a very short time, I would like to encourage the sort of frank, unscripted discussion that will lead to real progress on our issues. Our exchange will begin with a one-hour review of the broad economic context of our relationship. U/S Geithner will lead our side in that discussion. The 3:15-5:30 session will cover deregulation and market opening, antitrust cooperation, and the bilateral investment initiative. Our side in those discussions will be led by Ambassador Fisher, Mr. Melamed, and U/S Eizenstat, respectively. Finally, our dinner discussion will focus on how government can structure a business environment that encourages economic growth and entrepreneurial activity. I will now turn the floor over to Mr. Haraguchi. Thank you.