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FOIA Number: 2006-0467-F FOIA MARKER This is not a textual record. This is used as an administrative marker by the William J. Clinton Presidential Library Staff. Collection/Record Group: Clinton Presidential Records Subgroup/Office of Origin: Speechwriting Series/Staff Member: Jeff Shesol Subseries: OA/ID Number: 21462 FolderID: Folder Title: Harley [Davidson] - York, PA 11/10/99 Harley - Drafts Stack: Row: Section: Shelf: Position: S 91 6 10 2 Withdrawal/Redaction Sheet Clinton Library DOCUMENT NO. SUBJECT/TITLE DATE RESTRICTION AND TYPE 001. fax Cover sheet. Home Phone and Page Numbers. [partial] (1 page) 11/09/1999 P6/b(6) COLLECTION: Clinton Presidential Records Speechwriting Jeff Shesol OA/Box Number: 21462 FOLDER TITLE: Harley - York, PA 11/10/99 Harley - Drafts 2006-0467-F vz238 RESTRICTION CODES Presidential Records Act - |44 U.S.C. 2204(a)] Freedom of Information Act - 15 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. Today we got even More news that our economic strategy is working. We released new statistics showing that producer prices actually fell slightly in October. We underlying continue to have the lowest / core inflation in MORC than three decades. Joshua S. Gottheimer 11/10/99 08:49:57 AM Record Type: Record To: Jeffrey A. Shesol/WHO/EOP@EOP CC: Subject: additional line -- doesn't matter where it goes. I was pleased to see that prices paid by producers actually declined by one-tenth of one percent last month that means that the economy has now absorbed increases in energy and tobacco prices over the past year and producer price inflation has returned to stable levels. Patrick M. Dorton 11/10/99 09:31:34 AM Record Type: Record To: Jeffrey A. Shesol/WHO/EOP@EOP CC: Subject: China (general): They are meeting with MOFTEC right now. Do not want to characterize negotiations. We hope to get a read out when negotiations break for the evening. IF CHINA ENTERED THE WTO: China (Harley): BOTTOM LINE: Greater market access on better terms - making Harley more competitive in the Chinese market. Increased exports. Tariff cuts of from current level (from 50% to 30%, or from 60% to 40% depending on the engine size) thus enabling Harley to be competitive in the Chinese market. Unrestricted ability to wholesale and/or retail Harleys in the Chinese market within 3 years. The ability to provide after sale services and maintenance and repairs, which was previously restricted by China - but is vital for Harley and other U.S. manufacturers for ensuring the quality and reputation of their brand. Introduction of foreign provided personal credit financing in the market, helping Harley increase its exports to China and move units in the Chinese market through American-style credit instruments. President Clinton Participates In "National Dialogue On Jobs And Trade Day" Building A New American Consensus On Trade November 10, 1999 Today, President Clinton will participate in "National Dialogue on Jobs and Trade Day" by travelling to York, Pennsylvania to tour a Harley-Davidson motorcycle plant. The President will participate in a roundtable discussion with workers, management, and Commerce Secretary William Daley. Following the roundtable, the President will address more than two thousand company workers on building a new consensus on trade between all Americans -- labor and management, government and industry, community leaders and ordinary citizens. In addition to the President's event, "National Dialogue on Jobs and Trade Day" will include 15 other similar events and more than 200 smaller events around the nation. BUILDING A NEW AMERICAN CONSENSUS ON TRADE: In his State of the Union address this year, President Clinton stated "I think trade has divided us, and divided Americans outside this chamber, for too long. Somehow we have to find a common ground on which business and workers and environmentalists and farmers and government can stand together. The "National Dialogue on Jobs And Trade Day" is an effort to find that common ground - bringing labor and management, government and industry together all across the nation to talk about the benefits and challenges of trade. The President's agenda for the upcoming Seattle WTO also represents his attempt to build a new consensus. The President's agenda would expand economic opportunities by opening new markets to American goods and services. And, at the same time, the President's agenda for Seattle would help put "a human face" on the global economy by advancing the rights of workers and protecting our environment. UNDERSTANDING THE IMPORTANCE OF TRADE: Trade Is Fundamental To American Prosperity Today And In The Future. Since 1948, eight separate rounds of international trade negotiations have helped make the last half century the period of the most rapid, sustained economic growth ever recorded. There remains great potential for further progress. Ninety-six percent of the world's consumers live outside the U.S., many in countries that are only now achieving the means to become significant purchasers of American products. The President's call for a new round of multilateral trade negotiations in the World Trade Organization would expand access to these and other markets for American manufacturers, farmers, ranchers, and service providers. Increased trade will continue to contribute to American prosperity in the 21st Century by: Supporting higher paying jobs through exports in our most productive sectors; Providing producers with a wider choice of suppliers, making them more competitive; Providing consumers with more choice and value in purchasing decisions; and Stimulating productivity, investment and economic growth through greater competition, exposure to new ideas, and access to capital. Trade Has Contributed To The Continuing Strength Of The Economy. America's successful engagement in the world economy has helped to propel the economy's remarkable record of sustained, non-inflationary growth. Market opening agreements have expanded commercial opportunities for many of America's most productive industries. U.S. exports are up 51% over the past six years, in part due to market opening agreements. Export expansion has accounted for more than one-quarter of U.S. economic growth between 1992 and 1998. The U.S. has grown nearly twice as fast as all of the other countries in the G7. Real industrial production in the US is up over 34% since 1992, compared to a 4% gain for Germany and a 1% decline for Japan. Increased trade has contributed to more than 19.6 million net new jobs being created since 1992 (through August 1999), and a 4.1% unemployment rate that is the lowest in a generation. Trade Has Contributed To Higher American Living Standards. By expanding exports and maintaining the world's most open major market, America has sustained the world's highest real per capita incomes. Average real wages in the U.S. economy have grown 6.3% under President Clinton, and grew by 2.7% in 1998 the fastest annual growth in over 20 years. From 1992 to 1998, export-related jobs paid 15% more on average than non-export-related jobs. The average per capita income of 265 million Americans is high even relative to countries like France, Germany, Japan, Canada, and Australia. The World Bank reports that U.S. real per capita income exceeded the average for 650 million people living in other such high-income countries by nearly 40%. Our incomes could be higher still by further opening foreign markets. PROMOTING US TRADE OBJECTIVES IN THE WTO: The new Round of World Trade Organization negotiations is set to begin in Seattle, Washington on November 30th. The President's agenda reflects his desire to make Seattle "a new type of Round for a new century: a Round that is about jobs and development." Working with the other nations of the WTO, the President wants the Seattle Round to be about expanding prosperity and improving the quality of life and work here at home and around the globe. This Round should ensure that the global trading system honors our values and meets our goals for the 21st Century. The U.S. agenda in Seattle includes: 1. Expanding Opportunities For American Agriculture. Today, America is the largest exporter of agricultural products in the world, and those exports support 750,000 American jobs that pay higher than average wages. In Seattle, the United States will push for new opportunities for agriculture products: Work To Eliminate Export Subsidies Reduce Tariffs Ensure Market Access For Ag-Biotechnology Reduce Trade-Distorting Domestic Supports 2. Expanding Opportunities For American Goods and Services. Manufacturing: Further reduce trade barriers; Eliminate or Sharply Reduce Tariffs; Simplify Customs Procedures. Services: Seeking commitments for more openness in key sectors; Ensuring growth for key sectors; Preventing discrimination against particular modes of delivering services. Seek Immediate Tariff Cuts In Eight Key Areas Increase Transparency in Government Procurement 3. Ensuring Continued Freedom In The New Industries Of The Future. E-Commerce: Extend the 1998 U.S.-led moratorium on electronic transmissions; Ensure that WTO members take no action to inhibit the growth of e-commerce; Ensure that developing countries benefit from e-commerce. Promote Adoption of ITA-2: The Information Technology Agreement (ITA) eliminated duties on $600 billion worth of technology products. ITA 2 would make additional information technology products tariff-free. 4. Putting A Human Face On The Global Economy. President Clinton has worked to "put a human face" on the world economy. In Seattle, the United States will pursue a specific agenda to broaden participation in the benefits of trade among and within nations. Labor: The United States proposes the creation of a WTO Working Group on Trade and Labor during the Seattle Round. This Group would provide a mechanism within the WTO to ensure a commitment to internationally recognized core labor standards and to build consensus on issues important to the lives of working people all over the world. In addition, the U.S. supports a strengthening of the International Labor Organization (ILO). Environment: The United States will: conduct its own environmental review of the Round and urge the WTO to conduct a review as the round proceeds; pursue "win-win" opportunities that provide open markets and environmental benefits; insist that the WTO continue to recognize the right of members to take measures to meet environmental standards higher than those required by international standards; and strengthen the cooperation between the WTO and international environmental organizations. WTO Reform And Developing Country Institution Building: The United States will also pursue an agenda to make the WTO itself more open and accessible. The U.S. is also proposing measures to help developing nations by providing technical assistance on implementing trade policy and strengthening institutions in developing countries responsible for trade, labor, and environment. 5. Expanding The Community Of Nations That Benefit From And Play By The Rules Of The Trading System. Bringing More Nations Into Open Trading System Ensuring That Developing Countries Fully Benefit From The Open Trading System National Dialogue on Jobs and Trade Harley-Davidson: A Success Story for American Trade November 10, 1999 The Success Of Harley-Davidson Is Evidence That American Innovation And Effective U.S. Trade Policy Can Reap Rewards For American Companies And American Workers. Harley-Davidson is one of many U.S. companies that have benefited greatly from U.S. trade laws. In 1983, facing a surge of Japanese imports, the company received temporary relief under U.S. trade laws. Harley used this time to readjust and become more competitive. It improved manufacturing efficiency and product quality, and, as a result, was able to significantly increase its market share. Today, Harley-Davidson is the clear market leader, with a 56% share of the large motorcycle market. The Harley-Davidson Experience Is An Example That U.S. Trade Policy Can Work. When the motorcycle market shrank due to the 1981-1982 recession, Japanese producers continued to ship motorcycles, creating a glut of unsold bikes that artificially depressed prices and threatened Harley's viability. Following an investigation under Section 201 of the 1974 Trade Act, the U.S. International Trade Commission found in 1983 that increased imports of heavyweight motorcycles threatened serious injury to the domestic industry. This finding gave the President authority to impose temporary import relief to allow the industry time to adjust. A 45% tariff surcharge was imposed with a scheduled phase-out of five years. Harley's recovery was so successful, however, that it took the unprecedented step of asking that the tariff surcharge be repealed one year ahead of schedule, in 1987. Harley- Davidson has now gone on to further success as U.S. exports of motorcycles and parts have grown 15 percent annually from 1987 to 1998, reaching $626 million last year or about 35% of industry sales. Harley-Davidson Has Been A Great Success Story Of The 1980s And 1990s. Today, Harley-Davidson motorcycles are in demand not just in this country but throughout the world. Twenty-two percent of motorcycles produced in the York, PA final assembly plant are produced for export, and much of Harley's growth is due to exports. In Japan, for example, the market for Harleys has been growing at an annual rate of 43% since 1996. Motorcycle exports have helped create numerous jobs for American workers, and by 2003, Harley-Davidson expects to double production from 1996 levels. The company has received numerous accolades, including being named one of the 100 best-managed companies by Industry Week magazine. At the same time, Harley-Davidson has also demonstrated good corporate citizenship, having recently received the Minority Suppliers Council's First Step Award in recognition of its commitment to racial and cultural diversity among suppliers. The company's biggest challenge now is to meet the growing demand for its products. The Clinton Administration And U.S. Industry Have Worked Together To Create A Level Playing Field For American Exports. With the U.S. industry leading the way in innovation, and the U.S. government helping to open markets for American exports, we can continue to expand U.S. sales overseas and create more jobs for American workers. The Clinton Administration has worked with Harley-Davidson to develop its export strategy - a major part of its strategic growth plan now that the U.S. market has matured - and to identify and remove obstacles to their sales in foreign markets such as Japan; Taiwan, Brazil, Malaysia, Thailand, Indonesia, and the EU. Market-opening initiatives include: Taiwan: The use of large-size motorcycles is banned in Taiwan. Taiwan had proposed ending the ban, but had suggested enforcing engine emission standards similar to those on small motorcycles. This would have resulted in Taiwan's engine emissions standards being the strictest in the world and would have effectively served as a trade barrier for large-size motorcycles. As a result of negotiations regarding Taiwan's entry into the World Trade Organization, the U.S. industry will be able to sell large-size motorcycles in Taiwan soon after accession. The Administration is continuing to work with industry to remove the ban of motorcycles on Taiwan's two major highways. Brazil: In 1995, Brazil unilaterally increased tariffs on imported motorcycles to more than 70%. The Administration addressed this issue during its participation in the 1996 Hemispheric Summit, and, as a result, Brazil decided to immediately reduce these tariffs by half - and gradually lower the tariff to 20%. Japan: Although Japan is the second-largest foreign market for U.S. exports of motorcycles, Japan currently has regulations that hamper sales opportunities for large-size motorcycles - including prohibitions on tandem riding (carrying a passenger) and a differential, lower speed limit for motorcycles on highways. These regulations do not appear to provide any safety benefits, and the Administration is working with industry to convince Japanese authorities to modify these rules. Previously, the Administration and others helped effect a change in operator licensing procedures for large-size motorcycles that were extremely burdensome. Upcoming WTO Round: During the upcoming round of negotiations, the Administration will likely be placing a high priority on lowering motorcycle tariffs. In particular, the U.S. will push for the lower tariffs in major markets like the European Union - which has tariffs that are over twice as high as U.S. import tariffs (6 percent versus 2.4 percent). National Dialogue on Jobs and Trade Day Events in Coordination with President C linton's Visit to York, Pennsylvania November 10, 1999 Today, President Clinton will participate in "National Dialogue on Jobs and Trade Day" by travelling to York, Pennsylvania to tour a Harley-Davidson motorcycle plant. The President will participate in a roundtable discussion with workers, management, and Commerce Secretary William Daley. Following the roundtable, the President will address more than two thousand company workers on building a new consensus on trade between all Americans -- labor and management, government and industry, community leaders, and ordinary citizens. In addition to the President's event, "National Dialogue on Jobs and Trade Day" will include 15 other similar events and more than 200 smaller events around the nation. COMPANY PARTICIPATION: A number of events hosted by President's Export Council members (a group of industry and labor leaders who advise the President on trade issues) are highlighted below: AT&T - C. Michael Armstrong, CEO of AT&T and Chairman of the President's Export Council, and Jim Irvine of the Communication Workers of America will be meeting with a group of AT&T workers at their headquarters in Basking Ridge, NJ. Boeing - Phil Condit, CEO of Boeing and Bill Johnson, the vice-president. of the Machinists Union (IAM) will be meeting with Boeing workers in Seattle, WA. Delta Air Lines / BellSouth - Leo Mullin, CEO of Delta Air Lines and Duane Ackerman, CEO of BellSouth, will be meeting with workers from both companies at Delta Air Lines Cargo facility in Atlanta, GA. Joining them will be Secretary of Transportation Rodney Slater, Special Envoy Buddy MacKay, Georgia Governor Roy Barnes and Atlanta Mayor Bill Cambell. Cargill - Ernie Micek, Chairman of Cargill, will host a conversation with Cargill workers at their headquarters in Wayzata, MN. At least five other locations will be connected by videoconference, including Blair, NE; Eddyville, IA; Wichita, KS; Chicago, IL; and Wahpeton, ND. Monsanto - Arnold Donald, President of Monsanto's Nutrition Division, will host a Brown-Bag lunch with workers at their headquarters in St. Louis, MO. This lunch will also be broadcast to a number of other Monsanto locations around the country. Asst. Secretary of Commerce Michael Copps will be joining Arnold Donald at this event. OTHER CEO/WORKER MEETINGS ON TRADE: In addition, the following CEOs will also be meeting with workers at these companies throughout the day or participating in trade-related events (Administration Officials will be participating in these events as noted): Susan Corrales-Diaz, Systems Integrated (San, Diego, California); Gregory Craig, Cook Inlet Energy Supply (Los Angeles, California); William Crowell, Cylink and David Aaron, Under Secretary of Commerce (Sunnyvale, CA); Jonathan Tisch, Loews-Hotels (New York, NY); Joe Gorman, TRW (Virtually linked to Cookeville, TN); Mayor Charles Womack attending; Bill Steere, Pfizer and Robert Mallett, Deputy Secretary of Commerce (New York, NY); Sy Sternberg, New York Life Insurance (Orlando, FL). OTHER TRADE-RELATED EVENTS FEATURING ADMINISTRATION OFFICIALS: The following senior Administration Officials are participating in other trade-related events throughout the day: Secretary Summers, U.S. Chamber of Commerce, Fall Meeting, Washington, DC; SBA Administrator Alvarez, Small Business Exporting Conference, Rockville, MD; Under Secretary Baker, Trade in Environmental Technologies events, (TBD); Commerce Deputy Under Secretary Biel, Northern Ohio/Southern Ohio DEC Conference, Dayton, OH; Commerce Deputy Assistant Secretary Cribb, Roundtable at Philadelphia College of Textiles, Philadelphia. The following local officials are also participating in trade-related events: Mayor Dennis Archer (Detroit, MI); Mayor Jesse Norwood (Prichard, AL); Mayor Miguel Pulido (Santa Ana, CA); Mayor Edward Rendell (Philadelphia, PA). Other Trade-Related Activities On November 10 A number of major companies will produce communications to be distributed by e-mail, video, etc. for the use of workers and others on November 10. These include companies such as Warner-Lambert, Motorola, Farmland, Procter and Gamble, Caterpillar, Champion International, Hewlett-Packard, Eastman Kodak and United Technologies. In addition, a number of VTM Schools from around the country that have been associated with the President's Export Council VTM program will hold special programs on November 10 focusing on trade and approximately 200 members of our District Export Councils (DEC) and clients of U.S. Export Assistance Centers (USEAC) have agreed to participate in the day in some way - either through CEO/Employee discussions or through internal communications. R Today, you're selling about a quarter of your bikes abroad. From Costa Rica to Korea, from Central Europe to the Middle East, the global market for motorcycles is growing. It's a big part of Harley-Davidson's future. Today I want to talk to you about the ways we can make that future even brighter for you and for all American workers - by building a trading system that honors our values. I believe we must forge a new consensus on trade. This dialogue today - and the one Secretary Daley has been leading across the country - is about finding the common ground where we can stand together. Labor and management. Government and industry. Community leaders and ordinary citizens. Working together, we can expand opportunity at home even as we expand trade abroad. 4 Revised Final 11/10/99 9:00am Jeff Shesol PRESIDENT WILLIAM J. CLINTON REMARKS ON TRADE HARLEY-DAVIDSON COMPANY YORK, PENNSYLVANIA November 10, 1999 Acknowledgements: Sec. Daley; Jeffrey Bleustein, Harley-Davidson CEO; Bobby Ramsey, Chief Shop Steward; Tom Buffenbarger, Pres., International Assoc. of Machinists; Willie Davidson, VP for Styling and grandson of William Davidson, one of the company's founders; all the companies and groups holding events around the country As you may remember, York was the very first overnight stop Al Gore and I made back in 1992, on our campaign bus tour. I believe I met a good many of you back then, as I stood atop a stepladder outside the Yorktowne Hotel and spoke to a crowd about this size. I didn't get a chance to visit Harley-Davidson on that trip. I wish I had - especially because I gave away my one and only Harley jacket and didn't have a spare. Now I do. So I thank you all very much. Harley-Davidson is more than an American icon - you're a great American success story. The company's recovery since the early '80s has been just remarkable. Back then, your goal was survival. Today, you're not just surviving - you're flourishing. You're setting company records for sales and earnings. You're one of the best-managed companies in America, according to Industry Week. And every one of you deserves a hand. How have you done it? By investing in innovation; and forging a strong partnership between labor and management. By boosting product quality as well as productivity. But you do a lot more than build great bikes. You show all of us something about the dignity of work, the way that honest labor gives meaning and structure to our lives. Our task, as we approach the 21st Century, is to advance these same values in a marketplace that is much wider, and more full of possibility, than the Davidson brothers or Bill Harley could even have imagined. In 1973, when the first Harley rolled off the assembly line here in York, America exported 6,300 motorcycles. By 1998, that number had increased more than ten-fold, to 66,000. Today, you're selling about a quarter of your bikes abroad. From Costa Rica to Korea, from Central Europe to the Middle East, the global market for motorcycles is growing. It's a big part of Harley-Davidson's future. Today I want to talk to you about the ways we can make that future even brighter for you and for all American workers - by building a trading system that honors our values. I believe we must forge a new consensus on trade. This dialogue today - and the one Secretary Daley has been leading across the country - is about finding the common ground where we can stand together. Labor and management. Government and industry. Community leaders and ordinary citizens. Working together, we can expand opportunity at home even as we expand trade abroad. 1 A strong global trading system is good for all the nations of the world. It is certainly good for America, where exports create millions of jobs where exports support one in five manufacturing jobs and where export-related jobs pay wages 15% higher, on average, than other jobs. The challenges of the global economy are new and numerous. Those of us who believe trade can be a force for good have got to acknowledge that. But if we want to seize the opportunities of the global economy, we've got to rise to those challenges, not shrink from them. That's how Harley roared back into the lead. That's how you're going to keep moving forward. And that's how we're going to keep America; like Harley-Davidson, the "king of the road" in the 21st Century. [On the panel discussion we just held, we heard from Don Albright, who coordinates your apprenticeship program. Don believes that education and training are vital to a high-tech enterprise like yours and to a high-tech economy like America's. He's exactly right. That's why education is at the heart of the budget debate in Washington and is at the top of my priority list. We've been working with the Congress on this issue, and with Chairman Bill Goodling, who, as you know, represents York. I am determined to keep the promise Congress and I made last fall to hire 100,000 qualified teachers to reduce class size. At the same time, we must demand more accountability for results. Then Don Albright can be sure his gauge lab will stay stocked with highly skilled workers.] In Seattle, in just three weeks' time, America will host a meeting of the World Trade Organization. We will launch the new round of global trade negotiations that I called for last January, in my State of the Union Address. As I have said, I want it to be a new type of round for a new century: a round that's about jobs and development and broadly shared prosperity; about improving the quality of life and work in America and around the world. Since the very first trade round, in 1948, we have cut major industrial nations' tariffs on manufactured goods by 90%. It's no coincidence that this period has seen global trade grow 15- fold, as well as the most rapid, sustained economic growth ever recorded. Where tariffs remain too high, we can do better - beginning in Seattle. We will also work to make sure more nations play by the rules. We know how vital that was to Harley's big comeback. American leadership helps us make sure that the rules are strong and that they're followed - not just in York, Pennsylvania, but from York, England, to York, West Australia. As I have often said, we must put a human face on the global economy - making sure it works for ordinary citizens. We need to ensure that working people everywhere - not just here in York, but everywhere - feel they have a stake in global trade, a chance at a better life, and an assurance that spirited economic competition will never become a race to the bottom for labor or the environment. Some say that open trade is at odds with these goals. I believe the opposite is true: a strong system of trade, and a dialogue like the one we will start at Seattle, are our best means to achieve those ends. I am pleased that just last week, both parties in the Senate joined, to ratify an 2 international agreement to eliminate the worst forms of child labor. And in Seattle, as I have proposed, America will urge the WTO to create a Working Group on Trade and Labor. Trade agreements should advance, not undercut, labor rights and standards. You know, I haven't spent as much time on a Harley as some of you, and that includes the Secretary of Commerce. But I do know one thing about these machines. The raw power you can hear - you can feel - from blocks away is made possible only by the careful craftsmanship of your workers, on your factory floor. On the open roads of America and in the open markets of world trade, the quality of your products speaks for itself. I will keep working to ensure that more Americans, and more American businesses, can meet the tests of the new economy as boldly and ably as you have. Thank you. 3 R p.4 Final 11/09/99 9:00pm Jeff Shesol PRESIDENT WILLIAM J. CLINTON REMARKS ON TRADE HARLEY-DAVIDSON COMPANY YORK, PENNSYLVANIA November 10, 1999 Acknowledgements: Sec. Daley; Jeffrey Bleustein, Harley-Davidson CEO; Bobby Ramsey, Chief Shop Steward; Tom Buffenbarger, Pres., International Assoc. of Machinists; Willie Davidson, VP for Styling and grandson of William Davidson, one of the company's founders; all the companies and groups holding events around the country As you may remember, York was the very first overnight stop Al Gore and I made back in 1992, on our campaign bus tour. I believe I met a good many of you back then, as I stood atop a stepladder outside the Yorktowne Hotel and spoke to a crowd about this size. I didn't get a chance to visit Harley-Davidson on that trip. 1 I wish I had - especially because I gave away my one and only Harley jacket and didn't have a spare. Now I do. So I thank you all very much. Harley-Davidson is more than an American icon - you're a great American success story. The company's recovery since the early '80s has been just remarkable. Back then, your goal was survival. Today, you're not just surviving - you're flourishing. You're setting company records for sales and earnings. You're one of the best- managed companies in America, according to Industry Week. And every one of you deserves a hand. 2 How have you done it? By investing in innovation; and forging a strong partnership between labor and management. By boosting product quality as well as productivity. But you do a lot more than build great bikes. You show all of us something about the dignity of work, the way that honest labor gives meaning and structure to our lives. Our task, as we approach the 21st Century, is to advance these same values in a marketplace that is much wider, and more full of possibility, than the Davidson brothers or Bill Harley could even have imagined. In 1973, when the first Harley rolled off the assembly line here in York, America exported 6,300 motorcycles. By 1998, that number had increased more than ten-fold, to 66,000. 3 Today, you're selling about a quarter of your bikes abroad. From Costa Rica to Korea, from Central Europe to the Middle East, the global market for motorcycles is growing. It's a big part of Harley-Davidson's future. Today I want to talk to you about the ways we can make that future even brighter for you and for all American workers - by building a trading system that honors our values. I believe we must forge a new consensus on trade. This dialogue today - and the one Secretary Daley has been leading across the country - is about finding the common ground where we can stand together. Labor and management. Government and industry. Community leaders and ordinary citizens. Working together, we can expand opportunity at home even as we expand trade abroad. 4 A strong global trading system is good for all the nations of the world. It is certainly good for America, where exports create millions of jobs where exports support one in five manufacturing jobs and where export-related jobs pay wages 15% higher, on average, than other jobs. The challenges of the global economy are new and numerous. Those of us who believe trade can be a force for good have got to acknowledge that. But if we want to seize the opportunities of the global economy, we've got to rise to those challenges, not shrink from them. That's how Harley roared back into the lead. That's how you're going to keep moving forward. And that's how we're going to keep America, like Harley-Davidson, the "king of the road" in the 21ˢᵗ Century. 5 [On the panel discussion we just held, we heard from Don Albright, who coordinates your apprenticeship program. Don believes that education and training are vital to a high-tech enterprise like yours and to a high-tech economy like America's. He's exactly right. That's why education is at the heart of the budget debate in Washington and is at the top of my priority list. We've been working with the Congress on this issue, and with Chairman Bill Goodling, who, as you know, represents York. I am determined to keep the promise Congress and I made last fall to hire 100,000 qualified teachers to reduce class size. At the same time, we must demand more accountability for results. Then Don Albright can be sure his gauge lab will stay stocked with highly skilled workers.] 6 In Seattle, in just three weeks' time, America will host a meeting of the World Trade Organization. We will launch the new round of global trade negotiations that I called for last January, in my State of the Union Address. As I have said, I want it to be a new type of round for a new century: a round that's about jobs and development and broadly shared prosperity; about improving the quality of life and work in America and around the world. Since the very first trade round, in 1948, we have cut major industrial nations' tariffs on manufactured goods by 90%. It's no coincidence that this period has seen global trade grow 15-fold, as well as the most rapid, sustained economic growth ever recorded. Where tariffs remain too high, we can do better - beginning in Seattle. 7 We will also work to make sure more nations play by the rules. We know how vital that was to Harley's big comeback. American leadership helps us make sure that the rules are strong and that they're followed - not just in York, Pennsylvania, but from York, England, to York, West Australia. As I have often said, we must put a human face on the global economy - making sure it works for ordinary citizens. We need to ensure that working people everywhere - not just here in York, but everywhere - feel they have a stake in global trade, a chance at a better life, and an assurance that spirited economic competition will never become a race to the bottom for labor or the environment. 8 Some say that open trade is at odds with these goals. I believe the opposite is true: a strong system of trade, and a dialogue like the one we will start at Seattle, are our best means to achieve those ends. I am pleased that just last week, both parties in the Senate joined to ratify an international agreement to eliminate the worst forms of child labor. And in Seattle, as I have proposed, America will urge the WTO to create a Working Group on Trade and Labor. Trade agreements should advance, not undercut, labor rights and standards. 9 You know, I haven't spent as much time on a Harley as some of you, and that includes the Secretary of Commerce. But I do know one thing about these machines. The raw power you can hear - you can feel - from blocks away is made possible only by the careful craftsmanship of your workers, on your factory floor. On the open roads of America and in the open markets of world trade, the quality of your products speaks for itself. I will keep working to ensure that more Americans, and more American businesses, can meet the tests of the new economy as boldly and ably as you have. Thank you. 10 Final 11/10/99 8:30am PRESIDENT WILLIAM J. CLINTON TALKING POINTS FOR ROUNDTABLE DISCUSSION HARLEY-DAVIDSON COMPANY YORK, PENNSYLVANIA November 10, 1999 I want to welcome everyone to the roundtable and to thank you for welcoming me to Harley-Davidson. I enjoyed the tour of the plant, I love the jacket, and I am very much looking forward to our dialogue this morning. Jeffrey Bleustein [CEO, Harley-Davidson], I know you have some thoughts you'd like to share with us this morning. (I know you also have a new grandson, Noah; so if that's what you'd like to talk about, we'll certainly understand.) Bleustein will comment and then return the chair to you.] Harry Smith [Pres., Local 175, IAM], would you like to add your thoughts to this discussion? [Smith will comment and then return the chair to you.] ) [Suggested remarks to begin the discussion:] 1. Currently, your plant exports about 22% of its production; so you see first-hand the benefits of global trade. But, less than 20 years ago, you also felt the impact of unfair trade. What do you think are the benefits of global trade and what concerns do you have about it? 2. Don Albright, you've been with Harley-Davidson for 35 years; and now you run the Apprenticeship Program. Please tell us what role you think training and education have - not only in your. company, but also in our economy as a whole - and how we can improve the training and education we provide for workers. 3. You've told me about the labor-management partnership that you have forged here at Harley-Davidson. But it seems like more than a mere partnership: workers seem to have real authority and a stake in the company's success. How have you achieved that? [Suggested closing remarks:] I've learned a lot from this dialogue, and I appreciate the time you've taken to discuss your thoughts with me. I believe that there are vast opportunities for American workers as we work to open global markets; but I also understand the concerns of some workers and communities that trade may create some disruptions. I am committed to meet those challenges and also to keep open the dialogue that Sec. Daley began several months ago, the one we've continued today. This is a good start and it must continue. Term edity maling Draft 11/09/99 6:30pm sure no bue is Jeff Shesol left vehind PRESIDENT WILLIAM J. CLINTON REMARKS TO THE HARLEY-DAVIDSON CO. YORK, PENNSYLVANIA November 10, 1999 Acknowledgements: Sec. Daley; Jeffrey Bleustein, Harley-Davidson CEO; Bobby Ramsey, Chief Shop Steward; Willie Davidson, VP for Styling as well as the grandson of [TK Davidson,] one of the company's founders; all the companies holding events around the country As you may remember, York was the very first overnight stop Al Gore and I made back a stepladder outside the Yorktowne Hotel and spoke to a crowd about this size. I wish I'd had e didutge in 1992, on our campaign bus tour. I believe I met a good many of you back then, as I stood atop Ster a chance td visit Harley-Davidson on that trip but Lately, wish vc really had been wishing I had ever ever esp. b/c since I gave away my one and only Harley-Davidson jacket. I gave it to a Secret Service agent on his retirement; and while I was glad to do it, I've sure been wishing I had a spare. Now I do. So thank you very much. The reason your merchandise is so popular is because Harley-Davidson is an American icon a symbol of our freedom of open roads and wide open vistas. But Harley-Davidson is far more than that. You re a great American success story. The your recovery of Harley-Davidson since the early '80s has been just remarkable. Back then, your goal was survival. Today, you're not just only surviving - you're flourishing. You're setting company records for sales and earnings. You're one of the best-managed companies in America, according to Industry Week. And every one of you deserves a hand. How have you done it? By boosting product quality as well as productivity By expanding product lines and de eloping new technologies. By forging a strong partnership between labor and management. And you're sueeeeding, in no small measure, by selling nearly a third of your bikes abroad. In 1973, when the first Harley rolled off the assembly line here in York, America exported 6,300 motorcycles. By 1998, that number had increased more than ten- exports fold, to 66,000. Trade infuser you col $ 16 From Costa Rica to Korea, from Central Europe to the Middle East, the global market for mean your motorcycles is growing. It's a big part of Harley-Davidson's future. Today I want to talk to you about making that future a brighter one for you and for all American workers - by building a trading system that honors our values. I believe we must forge a new consensus on trade. This dialogue today - and the one Secretary Daley has been leading across the country - is about finding the common ground a where we can stand together. Labor and management. Government and industry. Community leaders and ordinary citizens. I believe that) working together, we can expand opportunity here at home even as we expand trade abroad. These goals don't work against each other. They go hand-in-hand. 1 A strong global trading system is good for all the nations of the world. It is certainly good for America, where our surging exports create millions of jobs s where exports support one in five manufacturing jobs where export-related jobs pay wage that 15 percent higher, on average, than other jobs. are The challenges of the global economy are new and numerous. Trade can bring disruption or dislocation. Those of us who believe trade can be a force for good have got to acknowledge that. But if we want to seize the opportunities of the global economy, we've got to rise to the challenge, not shrink from two That's how Harley roared back into the lead. That's how you're going to keep moving ahead. And that's how we're going to keep America, like Harley- Davidson, the "king of the road" in the 21st Century. HERICS [On the panel discussion we just held, we heard from Don Albright, who coordinates your Apprenticeship program. Don believes that education and training are vital to a high-tech enterprise like yours and to a high-tech economy like America's. He's exactly right. That's why education is at the heart of the budget debate we're having right now in Washington and is at the top of my priority list. I am absolutely committed to keeping the promise that I made, and the promise that Congress made, to begin hiring 100,000 new, highly-trained teachers to reduce class size in the early grades. We need to work together to find a way to keep that promise, and also at the to demand more accountability for results.] same time, In Seattle, in just three weeks' time, America will host a meeting of the World Trade Organization. We will launch the new round of global trade negotiations that I called for last January, in my State of one the Union Address. As I have said, I want it to be a new type of round for a new century: a round thatVs about jobs and development. A round that is about broadly shared prosperity; about improving the quality of life and work around the globe. world. here in America Since the very first trade round, in 1948, we have cut major industrial nations' tariffs on manufactured goods by 90 percent. It's no coincidence that this period has seen global trade grow fifteen-fold, as well as the most rapid, sustained economic growth ever recorded. Where tariffs remain too high, we can do better - beginning in Seattle. We will also work to make sure more nations play by the rules. We know how vital that was to Harley's big comeback. American leadership helps us make sure that the rules are strong and are followed - not just in York, Pennsylvania, but from York, England, and beyond. your, W. Australia. not just here in As I have often said, we must also put a human face on the global economy - making your, sure it works for ordinary citizens. We need to ensure that working people everywhere feel they but have a stake in global trade, a chance at a better life, and an assurance that spirited economic everywhe competition will never become a race to the bottom for labor or the environment. Some say that open trade is at odds with these goals. I believe the opposite is true: a stef strong system of trade, and a dialogue like the one we will start at Seattle, are our best means to achieve those ends. I am pleased that just last week, both parties in the Senate joined to ratify an international agreement to eliminate the worst forms of child labor. And in Seattle, as I have proposed, America will urge the WTO to create a Working Group on Trade and Labor. Trade agreements should advance, not undercut, labor rights and standards. 2 You know, I haven't spent as much time on a Harley as some of you, and that includes the Secretary of Commerce. But I do know one thing about these impressive machines. The raw power that you can hear - that you can feel - from blocks away is made possible only by the careful craftsmanship of your workers, on your factory floor. You do a lot more than build great bikes. You show all of us something about the dignity of work, the way that honest labor gives meaning and structure to our lives. Our task, as we approach the 21st Century, is to advance these same values in a marketplace that is much wider, and more full of possibility, than the Davidson brothers or Bill Harley could even have imagined. Thank you. Dr. 3 Draft 11/09/99 7:30pm John Jobe Jeff Shesol 91906 Rich -patricle PRESIDENT WILLIAM J. CLINTON REMARKS TO THE HARLEY-DAVIDSON CO. YORK, PENNSYLVANIA November 10, 1999 Tom Buffenbarger, Intl pres Acknowledgements: Sec. Daley; Jeffrey Bleustein, Harley-Davidson CEO; Bobby machinizat Ramsey, Chief Shop Steward; Willie Davidson, VP for Styling as well as the grandson of William Davidson, one of the company's founders; all the companies holding events around the country As you may remember, York was the very first overnight stop Al Gore and I made back in 1992, on our campaign bus tour. I believe I met a good many of you back then, as I stood atop a stepladder outside the Yorktowne Hotel and spoke to a crowd about this size. I didn't get a chance to visit Harley-Davidson on that trip. I wish I had - especially because I gave away my one and only Harley jacket and didn't have a spare. Now I do. So I thank you very much. Harley-Davidson is more than an American icon - you're a great American success story. The company's recovery since the early '80s has been just remarkable. Back then, your goal was survival. Today, you're not just surviving - you're flourishing. You're setting company records for sales and earnings. You're one of the best-managed companies in America, according to Industry Week. And every one of you deserves a hand. How have you done it? By boosting product quality as well as productivity. Through innovation, and a strong partnership between labor and management. And by selling nearly a third of your bikes abroad. In 1973, when the first Harley rolled off the assembly line here in York, America exported 6,300 motorcycles. By 1998, that number had increased more than ten- fold, to 66,000. From Costa Rica to Korea, from Central Europe to the Middle East, the global market for motorcycles is growing. It's a big part of Harley-Davidson's future. Today I want to talk to you about making that future a brighter one for you and for all American workers - by building a trading system that honors our values. I believe we must forge a new consensus on trade. This dialogue today - and the one Secretary Daley has been leading across the country - - is about finding the common ground where we can stand together. Labor and management. Government and industry. Community leaders and ordinary citizens. Working together, we can expand opportunity at home even as we expand trade abroad. A strong global trading system is good for all the nations of the world. It is certainly good for America, where our surging exports create millions of jobs where exports support one in five manufacturing jobs where export-related jobs pay wages 15% higher, on average, than other jobs. 1 The challenges of the global economy are new and numerous. Those of us who believe trade can be a force for good have got to acknowledge that. But if we want to seize the opportunities of the global economy, we've got to rise to those challenges, not shrink from them. That's how Harley roared back into the lead. That's how you're going to keep moving forward. And that's how we're going to keep America, like Harley-Davidson, the "king of the road" in the 21st Century. [On the panel discussion we just held, we heard from Don Albright, who coordinates your apprenticeship program. Don believes that education and training are vital to a high-tech enterprise like yours and to a high-tech economy like America's. He's exactly right. That's why education is at the heart of the budget debate we're having right now in Washington and is at the top of my priority list. I am absolutely committed to keeping the promise that I made, and the promise that Congress made, to begin hiring 100,000 new, highly-trained teachers to reduce class size in the early grades. We need to work together to find a way to keep that promise, and, at the same time, to demand more accountability for results. Then Don Albright can be sure his gauge lab stays stocked with high-skilled workers.] In Seattle, in just three weeks' time, America will host a meeting of the World Trade Organization. We will launch the new round of global trade negotiations that I called for last January, in my State of the Union Address. As I have said, I want it to be a new type of round for a new century: one that's about jobs and development and broadly shared prosperity; about improving the quality of life and work in America and around the world. Since the very first trade round, in 1948, we have cut major industrial nations' tariffs on manufactured goods by 90 percent. It's no coincidence that this period has seen global trade grow fifteen-fold, as well as the most rapid, sustained economic growth ever recorded. Where tariffs remain too high, we can do better - beginning in Seattle. We will also work to make sure more nations play by the rules. We know how vital that was to Harley's big comeback. American leadership helps us make sure that the rules are strong and that they're followed - not just in York, Pennsylvania, but from York, England, to York, West Australia. As I have often said, we must also put a human face on the global economy - making sure it works for ordinary citizens. We need to ensure that working people everywhere - not just here in York, but everywhere - feel they have a stake in global trade, a chance at a better life, and an assurance that spirited economic competition will never become a race to the bottom for labor or the environment. Some say that open trade is at odds with these goals. I believe the opposite is true: a strong system of trade, and a dialogue like the one we will start at Seattle, are our best means to achieve those ends. I am pleased that just last week, both parties in the Senate joined to ratify an international agreement to eliminate the worst forms of child labor. And in Seattle, as I have proposed, America will urge the WTO to create a Working Group on Trade and Labor. Trade agreements should advance, not undercut, labor rights and standards. 2 You know, I haven't spent as much time on a Harley as some of you, and that includes the Secretary of Commerce. But I do know one thing about these machines. The raw power you can hear - you can feel - from blocks away is made possible only by the careful craftsmanship of your workers, on your factory floor. & ou do a lot more than build great bikes. You show all of us something about the dignity of work, the way that honest labor gives meaning and structure to our lives. Our task, as we approach the 21st Century, is to advance these same values in a marketplace that is much wider, and more full of possibility, than the Davidson brothers or Bill Harley could even have imagined. Thank you. John: his people at their core move it up to the front more weight 3 HARLEY-DAVIDSON SMOTOR HARLEY-DAVIDSON COMPANY ® BACKGROUND AND HISTORY BACKGROUND H arley. Davidson began in a shed, went to war. became The Great Depression devastated the motorcycle industry. the symbol of American individualism and ended up Only two manufacturers, Harley-Davidson and Indian, sur- "king of the road", all in only 95 years. vived through the 1930s. Though sales dropped sharply, Harley-Davidson survived, thanks to a strong dealer network, 10x-15'shed-locatedinthe-Davidson-family's-Milwaukee- police and military use, conservative business management backyard_was_the-birthplace_of_Harley-Davidson.The Davidson and strong exports. Brothers William D., Walter and Arthur, and William S. Harley crafted their first motorcycle using the best available tools they #In-1941,-Harley-Davidson-again-answered-the-callto-war Its had, mostly their hands and their ingenuity. entire motorcycle output supplied American and Allied forces during World War II. Harley-Davidson built and shipped more InC1903,three motorcycles were built and the Harley-Davidson than 90,000 motorcycles during the war and earned the covet- Motor Co. began its journey. ed Army-Navy "E" award for excellence in wartime production. The King of the Road A Call to Action Following World War II, Americans eagerly returned to In 1909, Harley-Davidson introduced a more powerful motorcy- motorcycling. To meet the exploding demand for its motorcycles, cle, incorporating a new engine that is the company's standard Harley-Davidson purchased additional manufacturing facilities to this day: the V-Twin. Doubling the power of its predecessors, in the Milwaukee suburb of Wauwatosa in 1947. it carried riders at a then-unbelievable 60 miles per hour. By The 1940s and '50s brought changes for Harley-Davidson. The 1911, there were 150 other brands of motorcycles competing for second generation of management rose through the corporate space on America's roads. ranks as the original founders died, while the closing of Indian Soon thereafter, a new use for motorcycles appeared on the bat- in 1953 made Harley-Davidson the sole survivor in the tlefield. Already popular for police use, Harley-Davidson motorcy- American motorcycle industry. cles supported the military in border skirmishes with Pancho Villa Harley-Davidson now was the undisputed "king of the road". But in the early 1900s. As motorcycles became more reliable, the company did not rest on its laurels. It leaped forward in 1957 the United States called upon motorcycle manufacturers to sup- with the introduction of the Sportster motorcycle and ushered in port the infantry incWorld-War_laBy-the-end-of-the_war,_20,000 a new era that of the heavy-weight motorcycles. Harley-Davidson-motorcycles-had-been-called-into-action The 1950s and '60s also saw the explosion of the American The years following World War I saw major advancements in "motorcycle culture", with black leather jackets becoming not motorcycle design and Harley-Davidson led the way. In 1921, a only a statement of fashion, but of a lifestyle. The tough "Wild Harley-Davidson became the first vehicle to win a race with an Ones" image, made popular by the Marlon Brando movie of the average speed of over 100 miles per hour. The Teardrop gas same name, labeled motorcycle enthusiasts as "outlaws". tank was introduced in 1926, and another standard, the front (In fact only a tiny minority of all motorcyclists fit this image). brake came into use in 1928. Meanwhile, engine design improved continuously. History BACKGROUND In 1965, Harley-Davidson ended family ownership with a public In 1982, Harley-Davidson proved threat of injury to the stock offering and then, in 1969, merged with the American International Trade Commission (ITC). Then-President Ronald Machine and Foundry Company (AMF), which was chaired by Reagan, on recommendation from ITC, imposed additional tar- Rodney C. Gott, a Harley enthusiast. iffs on imported heavyweight Japanese motorcycles, effective The financial strength and resources of AMF aided for five years. But in just three years, the company revitalized its Harley-Davidson's growth as it entered the 1970s. To meet the manufacturing and streamlined its operations. This, combined demands of an expanding market, the company moved its with improved engines, new models such as the Electra Glide motorcycle assembly to York, Pennsylvania, in 1974, maintain- and Softail, and new styling developed by Willie G. Davidson, ing its engine manufacturing facility in Milwaukee. At the time of brought Harley-Davidson back to the forefront. By 1986, the the merger with AMF, Harley-Davidson was producing 14,000 company surpassed Honda and regained the top spot in the motorcycles per year. U.S. superheavyweight market. Beginning in 1969 and on into the 1970s, huge numbers of low- priced motorcycles were imported from Japan, dramatically An American Success Story reducing Harley-Davidson's market share. The ferocious com- petition coupled with motorcycle quality problems, which sur- Also in 1986, Harley-Davidson returned to public ownership with faced as a result of the company's rapidly expanding production, a highly successful stock offering, which provided the capital for created major problems for Harley-Davidson. the company to diversify. It acquired Holiday Rambler Corp., a leading producer of premium recreational vehicles and special- ized commercial vehicles. In March 1987, clearly in command of the domestic super- Innovative Management & Manufacturing heavyweight motorcycle market, Harley-Davidson petitioned the ITC to remove the tariffs one year early, an act unprecedented In 1981, 13 members of the Harley-Davidson management team in American industrial history. Harley-Davidson was hailed by purchased the company from AMF in a leveraged buy-out. They President Reagan as an "American success story". believed in a return to quality and introduced innovative new man- agement and manufacturing techniques, many of which were U.S. market share continued to grow. By the end of the year, learned from their Japanese competitors. Harley-Davidson began Harley-Davidson had 47 percent of the 651+cc superheavy- its turnaround by being among the first American companies to weight market. By 1988, market share was 54 percent. institute just-in-time inventory management, statistical process Today it is 56 percent. control and employee involvement programs. In Harley-Davidson's 95th year, the company continues to Then, another blow was dealt by Japanese competitors who improve every phase of its operations. Demand for Harley- refused to limit production in the face of declining demand for Davidson motorcycles is rapidly increasing in Europe, Japan, heavyweight motorcycles (700cc+). They shipped their surplus Australia and other countries. The international marketplace will inventory to the United States. be a major part of Harley-Davidson's future. pumer FACTS & FIGURES H High on their Hogs: arley-Davidson, Inc., includes Harley-Davidson Motor With 400,000 worldwide members and over 1000 local chap- Company, based in Milwaukee and Eaglemark ters, the Harley Owners Group® (H.O.G.) is the largest compa- Financial Services, Inc., based in Chicago, Illinois. ny-sponsored motorcycle enthusiast group. In 1997 alone, A Major Employer 100,000 H.O.G. members enjoyed three U.S. national rallies, two touring rallies and 46 state rallies. Some 25 percent of Total employment at Harley-Davidson Motor Company is H.O.G. members live outside the U.S., and rallies in Norway, approximately 5,500. In addition, there are nearly 600 dealer- Canada, Australia, New Zealand, Brazil and Mexico broke atten- dance records. In June of 1998, H.O.G. celebrates its 15th ships throughout the United States alone. anniversary with its biggest rally ever. Attendance is expected to exceed 50,000 members. 1997 Corporate Results Not Your Average Angel: Company research shows the typical U.S. Harley owner is a male in his early 40s with $69,000 household income who rides Net Sales $1.76 billion for recreation. Net Income $174 million Employee Enthusiasts: Earnings per Share $1.15 All H-D employees take part in a gain-sharing program, paying Number of Shareholders 50,374 cash incentives for attaining quality, profitability and product delivery goals. In 1997, more than 2,000 employees took training and education programs from the Harley-Davidson Leadership Institute. Courses help the company be more compet- itive and foster employees' personal growth and development. Harley-Davidson Motor Company Dealers Everywhere: The One and Only: Harley-Davidson motorcycles are sold through 1,132 dealers Harley-Davidson is the only major American-based motorcycle worldwide, including 598 in the U.S., 84 in Canada, 25 in Latin manufacturer and a leading global supplier of premium quality, America and Mexico, 325 in Europe and 114 in Japan. heavyweight (651cc+) motorcycles. The product line includes 20 traditional, factory custom and touring motorcycles, as well H-D Cafes: as police and military motorcycles. Popular licensing attractions are the Harley-Davidson Cafes, located in New York City and Las Vegas. These successful restaurants provide Famous Names: enthusiasts with great food, souvenir merchandise and a chance to see rare biker memorabilia. Harley-Davidson Road King names are among the best known in the industry: Sportster, Super Glide, Low Rider, Softail, Dyna Glide, Wide Glide, Road King, Electra Glide and Tour Glide. Eaglemark Financial Services, Inc.: In November 1995, Harley-Davidson, Inc. purchased Eaglemark Financial Services, Inc.. Eaglemark provides private label finan- Buell on Board: cial services programs, including Harley-Davidson Credit. In 1998, Harley-Davidson acquired Buell Motorcycle Company Eaglemark Financial Services introduced a new general credit of East Troy, Wis. as a subsidiary. Buell Motorcycle Company card in 1997. When it comes to charging it, the new Harley- designs and manufactures sport-touring motorcycles which are Davidson Chrome VISA Card leaves no doubt that the card- sold in North America, Europe, Australia and Asia. Currently holder is a Harley enthusiast. More than 117,000 Harley cus- there are 377 Buell dealers worldwide. tomers carry the Chrome VISA card, which can feature a photo of the cardholder with their Harley. Topping 100,000: H-D shipped 132,285 motorcycles in 1997 and expects to ship Harley-Davidson Credit, Eaglemark's largest division, provides 147,000 in 1998. The long-term goal: 200,000 motorcycles wholesale financing and insurance programs, including motorcy- annually by 2003. cle floorplanning, parts and accessories trade acceptance and commercial insurance brokerage to Harley-Davidson's U.S. dealer network. It-also provides the private Harley Card, an exclusive A Global Player: credit card for use in Harley-Davidson dealerships. Since its incep- H-D sells 27 percent of its motorcycles overseas; 36,100 units tion, Harley-Davidson® has financed the purchase of over 25,000 to more than 30 countries in 1997, accounting for $389 million new and used motorcycles and issued over 100,000 Harley Cards. in sales. The company has wholly owned subsidiaries in Germany, Japan and the United Kingdom. Market share in the heavyweight class is 41 percent in Australia, 11 percent in Europe and 17 percent in Japan. SHARING SUCCESS WITH THE COMMUNITY At Harley-Davidson, we believe that being a leader Tour de Cure: in business includes contributing to the better- Harley-Davidson is a Wisconsin sponsor of the annual Tour de ment of society. We support community causes as Cure bicycle ride for the American Diabetic Association, held in a corporation, and we encourage employees to cities nationwide. Rides are held in Milwaukee, Madison and get involved as donors or volunteers. Green Bay. In addition, Harley-Davidson dealers and Harley Charitable contributors are investments in the quality of life, Owners Group® (H.O.G.) chapters hold events on behalf of benefiting all our stakeholders: customers, employees, suppli- ADA each year. ers, shareholders, government, and the community at large. Here is a look at Harley-Davidson's major charitable projects: Right Next Door: Harley-Davidson's Milwaukee employees are the leading con- tributors to the annual walk for the Next Door Foundation, a local Jerry's Kids: service agency for children and families. In 1996, a total of 196 In 18 years as a national corporate sponsor of the Muscular Harley-Davidson walkers raised $11,203 for the foundation. The Dystrophy Association, the Harley-Davidson family of employ- Next Door Foundation provides education, counseling, day ees, dealers, customers and suppliers has raised more than care, head start, kindergarten, and support services. $25 million for the fight against neuromuscular disease. Not included in that figure are hundreds of thousands of dollars raised for MDA through our European and Asia/ Pacific families. In 1997, open houses were held at manufacturing facilities in Milwaukee and Tomahawk, Wisconsin; and York, Pennsylvania. All proceeds went to MDA. A Strong Foundation: Each year, a portion of company earnings is earmarked for the Harley-Davidson Foundation, Inc., which contributes to commu- nity projects. Donations are overseen by a Charitable Contributions Committee, staffed by seven employees from throughout the company salaried and hourly, union and non- union. In 1996, the Foundation received $1.6 million and invest- ed it in six categories of projects: community revitalization, edu- cation, medicine, arts and culture, environment, and the Volunteer Matching Hours Program. Organizations that receive contributions include: the United Way of Greater Milwaukee, Business Against Drunk Drivers, Boy Scouts and Girl Scouts of America, the United Performing Arts Fund, Milwaukee Public Museum and Greater Milwaukee Education Trust. Dollars for Hours: Through the Motor Company's Volunteer Matching Hours Program, employees are encouraged to volunteer and become involved in charitable organizations. Harley-Davidson then matches volunteer hours with monetary grants to those organi- zations. IN WISCONSIN W isconsin is the home of Harley-Davidson, and Milwaukee is the site of the company's world headquarters. In addition to its own full line of 20 models of motorcycles, Harley-Davidson owns Union Representation Buell Motorcycle Company in East Troy. Here is an Production workers at the manufacturing facilities in Wauwatosa overview of Harley-Davidson operations in Wisconsin: and Tomahawk are represented mainly by the United Paperworkers International Union (UPIU) of the AFL-CIO, as well as the International Association of Machinists and Aerospace Workers (IAM). Dealer Locations Location Function Harley-Davidson is represented by 26 independent dealerships in Wisconsin. Milwaukee Corporate headquarters, parts and 3700 W. Juneau Ave. accessories, sales, research and development Wauwatosa XL Engine and Transmission 11700 W. Capitol Dr. production; Product Development Center Menomonee Falls FL Engine and Transmission Dealers W156 N.9000 Pilgrim Rd. production Plant Site Franklin Parts and Accessories Distribution 10000 S.Franklin Dr. Center Tomahawk Fiberglass parts production and 426 E. Somo Ave. painting Total Wisconsin Employment Approx. 2600 (as of 03/98) massachusetrs IN PENNSYLVANIA E very year since the mid-1970s, Harley-Davidson motor- Union Representation cycles have rolled out of Pennsylvania headed for des- tinations all over the globe. Harley-Davidson's Final Production workers at the York facility are represented by the Assembly Plant, has two final assembly lines for custom motor- International Association of Machinists and Aerospace Workers cycles and one line for touring motorcycles. The plant, which also (IAM) Local 175 Tyson Lodge. performs motorcycle parts fabrication and painting, covers more: than 200 acres and has over 1. million square feet under roof. The plant employs 2,600 people. Dealer Locations The York facility is also the home of the Harley-Davidson Pennsylvania is home to 40 Harley-Davidson motorcycle dealers. Antique Motorcycle Museum. The evolution of the motorcycle and the sport of motorcycling are represented in the muse- um's displays covering Harley-Davidson's history from 1903 to the present. The collection of more than 40 motorcycles includes military and police bikes, a dirt bike and moped, lim- ited editions, custom models and Malcolm Forbes' favorite personal touring model. Community Involvement The York plant and its employees are major contributors to the betterment of the community. Besides supporting Harley- Dealers Davidson's corporate programs for the Muscular Dystrophy Association (MDA) mainly through its annual Open House every Plant Site September, York employees actively contribute to state and local causes. The York plant is a United Way Pacesetter compa- ny. Employees strongly support the local Salvation Army with bell-ringer collections at plant gates and food donations throughout the year. In addition, the company is a major con- tributor to the Burn's Health Education Center, York College, Easter Seal Society and the York County Literacy Council, among others. The Employee Rider Association also supports local causes such as the Margaret Moul Home for people with cerebral palsy, through organized riding events and fundraising activities. york plant KANSAS CITY K ansas City, Missouri is the new manufacturing plant of Harley-Davidson's Sportster motorcycles. "Ramp Up" production began in January 1998. This is a gradual process of increasing production as systems are developed and fine tuned. Full production is anticipated by July 1998, with 150 motorcycles assembled per day. The plant also will manufacture the gas tanks, fenders and frames used in Sportster production, as well as contain a cosmetic paint shop. Anticipated employment is 350 people by the end of 1998 and 450 once the plant is operating at full production. The new facility includes 350 acres and has 330,000 square feet under roof. Union Representation Production and maintenance workers at the Kansas City facility are jointly represented by the International Association of Machinists and Aerospace Workers (IAM) and the United Paperworkers International Union (UPIU). Missouri has 14 Harley-Davidson motorcycle dealers. Dealers Plant Site operations INTERNATIONAL OPERATIONS In There currently are 325 Harley-Davidson dealerships in Europe, and eight independent European distributorships located in 1995, Harley-Davidson expanded its international Scandinavia, Italy, Spain, the Middle East, South Africa, and operations with the establishment of European head- central Europe. quarters in Windsor, England. This business unit is responsible for the Motor Company's activities in all Harley-Davidson has categorized the Asia / Pacific region into markets of Europe. Prior to the new entity being established, three sub-regions: Japan, Australia / New Zealand, and an area these markets had been managed from the United States. classified as "Other Asia", which includes countries such as The multi-national composition of the Harley-Davidson Team in Malaysia, Singapore, Thailand and Hong Kong. Europe Group is designed to manage the diversity of the Harley-Davidson has a wholly-owned subsidiary in Japan that region's customer base in Europe, Africa, and Middle East. serves 114 dealers. Three Australian independent dealers / dis- Harley-Davidson Motor Company has subsidiary operations tributors serve 69 dealers in Australia and New Zealand. "Other located in four European markets - the United Kingdom, Asia" is represented by independent dealers / distributors in Germany, Benelux, and France. The European corporate oper- Hong Kong, Korea, Malaysia, Singapore, Taiwan and Thailand. ations facilitate Harley-Davidson's sales and marketing objec- Harley-Davidson motorcycles are becoming increasingly com- tives, finance, information technology, information systems, and human resources. mon throughout Latin America. They first were introduced to the Latin American market in the 1920s, when Harley-Davidson The European facilities allow Harley-Davidson to focus strongly manufactured motorcycles for the Mexican police force. Today, on the potential of these important markets. Europe is the Harley-Davidson is focused on development and expansion of largest heavyweight motorcycle market in the world. The the primary Latin American markets of Peru, Colombia, Costa European 651+cc market is 18 percent larger than its United Rica, Dominican Republic, Ecuador, Venezuela and Uruguay. States counterpart. HISTORICAL PERSPECTIVE FOR THE U.S.A. Purchaser Demographic Profile: 1985 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 GENDER Male 98% 98% 96% 96% 96% 95% 95% 93% 93% 91% 91% Female 2% 2% 4% 4% 4% 5% 5% 7% 7% 9% 9% MEDIAN AGE Years 34.1 34.7 34.6 34.6 36.7 38.5 38.4 41.6 42.1 42.5 43.6 MARITAL STATUS Married 54% 55% 59% 56% 58% 62% 59% 65% 68% 67% 67% Single 29% 25% 25% 27% 27% 23% 23% 19% 18% 17% 17% Widowed / Divorced 17% 16% 16% 17% 17% 15% 18% 16% 14% 16% 16% No Answer X 4% X X X X X X X X X CHILDREN LIVING AT HOME None 41% 55% 54% 57% 58% 57% 57% 53% 54% 53% 54% 1-2 34% 37% 37% 36% 35% 36% 36% 38% 38% 39% 38% 3+ 6% 7% 8% 7% 7% 7% 7% 9% 8% 9% 8% No Answer 19% 1% 1% X X X X X X X X MEDIAN INCOME (000'S) Personal $28.0 $30.7 $31.3 $36.4 $38.5 $40.3 $42.7 NA NA NA NA Household $35.3 $38.4 $40.0 $44.7 $47.3 $50.5 $53.7 $61.9 $65.2 $66.4 $68.5 EDUCATION LEVEL Non-High School Grad 8% 9% 8% 8% 7% 6% 6% 5% 5% 4% 4% High School Grad 41% 32% 34% 33% 34% 27% 28% 26% 25% 24% 24% Some College / Trade Sc. 31% 41% 37% 38% 38% 40% 38% 39% 39% 38% 38% College Grad / Post Gra. 19% 18% 20% 21% 22% 26% 29% 31% 31% 34% 34% The 95th ersary The Rally une 13,1998 is a major milestone in Harley-Davidson The Harley Owners Group will celebrate its 15th Annual H.O.G. history. It will mark our 95TH year of being the premier Rally at Wisconsin State Fair Park in Milwaukee June 10-12, manufacturer of the most desired heavyweight motor- 1998. This event is exclusively for H.O.G. members, which has more than 400,000 members world-wide. Harley-Davidson cycles in the world. The magnitude of the event is significant. expects 50,000 H.O.G. members to attend. Rally events will More than 100,000 people are expected to flock to Harley- include entertainment, seminars, games and competitions. schometown, Milwaukee, Wisconsin-to celebrate their Throughout this week there also will be Harley-Davidson facto- solidarity, their love for motorcycles and the Harley lifestyle. Our ry tours, demo rides, Buell Battletrax events, a Harley-Davidson 95 years of history have established us asran-American_icon corporate display at the Wisconsin Center and racing. with-world-widerecognition.Passionate Harley-Davidson riders around the world will journey to Milwaukee to join the festivities. The Reunion Harley-Davidson is also using the 95TH Anniversary to celebrate The day-long 95TH Anniversary Reunion on June 13, 1998, will start with a spectacular parade of motorcycles winding their way its 18 years of support for the Muscular Dystrophy Association through Milwaukee to the festival grounds. Harley-Davidson (MDA). To date, we have raised more than $22 million for MDA. executives, government officials and celebrities will be leading The 90TH Anniversary Reunion activities alone raised $1 million, the parade. The Reunion, from 9 am to 11 pm, will feature and we hope to raise more than $1.5 million this time. national and regional entertainment on eight stages as well as new and antique motorcycle displays, demonstrations, games, Harley-Davidson's 90th Anniversary Reunion in 1993 drew more auctions, raffles and an evening birthday celebration at 8:30 pm. than 70,000 motorcycle enthusiasts to Milwaukee from around Comedian, host of NBC's Tonight Show and Harley-Davidson the world and has been touted as one of the largest and most enthusiast, Jay Leno will act as master of ceremonies to the 95th Anniversary birthday celebration. successful events in motorcycle history. Veteran's Park Extends 95th Celebration The 95th Anniversary Celebration at Veteran's Park on YEARS OF GREAT Milwaukee's lakefront provides a free location for the communi- NINETY FIVE MOTORCYCLES ty to enjoy 95th Reunion activities. Harley-Davidson plans to link that site with the Summerfest grounds so everyone in Milwaukee can share in the festivities, including the birthday cel- ebration ceremony. 1903 1998 International Celebrations International events planned for the 95TH Anniversary Celebration includes: Europe: From June 17-19 there will be Gateway Rides from four The Ride corners of Europe to the June European H-D Festival in Faaker See, Austria. This 95th Anniversary celebra- tion on June 20 in a mountain castle will feature con- The 95TH Anniversary Ride includes five week-long rides from certs, displays, foods, beverages and fun. cities across the country that start the first week of June. The five simultaneous fund-raising rides, hosted by Latin America: Rallies and Rides from Mexico City to Dallas and from Miami to Orlando will meet up with the Harley-Davidson Motor Company executives, will depart from: scheduled 95TH Anniversary Rides. Canada: Rallies and Rides from Vancouver and Smithers, B.C.; to Sioux Falls, SD; and from Ottawa and Ontario, NS.; Northwest: Spokane, WA to Detroit, MI. Southwest: Riverside, CA Asia / Pacific: Possible celebrations in Japan and Australia; TBA. Central: Dallas, TX Northeast: York, PA Southeast: Orlando, FL The rides are open to all motorcycle enthusiasts and will aver- age 300 miles per day with MDA-fundraising events held at stops along each route. They will land in Milwaukee on June 9, 1998, just in time for the Harley Owners Group (H.O.G.) 15th Annual Rally. Joshua S. Gottheimer 11/10/99 08:49:57 AM Record Type: Record To: Jeffrey A. Shesol/WHO/EOP@EOP CC: Subject: additional line -- doesn't matter where it goes. I was pleased to see that prices paid by producers actually declined by one-tenth of one percent last month that means that the economy has now absorbed increases in energy and tobacco prices over the past year and producer price inflation has returned to stable levels. May 6 / Administration of Ronald Reagan, 1987 782 Remarks to Harley-Davidson Company Employees in York, Pennsylvania May 6, 1987 Thank you, Vaughn Beals, and thank all was Five-by-Five. Well, that did it. He bet of you very much. And let me answer that the whole bundle on that horse, number question about Nancy. [Laughter] The gov- five in the fifth race, and the horse came in ernment gets one employee free: the First fifth. [Laughter] Lady. [Laughter] You've heard about poli- Well, while others may bet on horses, I'll tics making strange bedfellows; I found out put my bet on you and on America. And politics, with their scheduling, can kind of that was what we did 4 years ago. You break up some bedfellows. [Laughter] asked us to give you breathing room so you They' ve got her on another schedule today. could finish getting into shape to meet un- But let me say a special thank you, also, expectedly strong foreign competition. It for that great music to the William Penn was like giving a boxer a few extra weeks of High School Symphony Band. I was a drum training before a fight. We looked at you major of a band like that once in my home- carefully. We asked, "Is Harley-Davidson town. We were marching in a Memorial really serious about getting into shape?" Day parade, and the fellow on the horse And the answer came back a resounding that was supposed to be leading the parade "yes." Harley was hard work with new rode back down the line to see how every- eproducts and finding better ways to make thing was coming along. And suddenly, I bikes: And- shapeup was-not- began to think the music was getting rather relying the management Every faint-and I'm pumping that baton. And one: from the boardroom to the-factory the man on the horse caught up just in time was.involved. No matter how we looked at to turn the band. They turned the corner, it, we could see that everyone at Harley- and I was going down the street all by Davidson was serious about getting into myself. [Laughter] fighting shape. So, when I was told that you Well, after being shown around this plant, wanted a little more time to train, I said, it seems to me I've come to hog heaven. "Yes, kick on the engine, Harley, and turn One thing's for sure: When it comes to mo- on your thunder!" torcycles, this is the home of the all-Ameri- And that's just what you did. You cut the L can A-team. Of course, that not what a lot hours of work needed to make a motorcycle of-people were saying about you just a:few by one-third. You cut-inventory by two- years rago. Some people said sthat you thirds. You tripled the number of defect- couldn't make the grade They usaid you free, machines you shipped. And with pro- couldn't keep upswith foreign competition. ductivity up, you kept price increases small, They said that Harley Davidson was run- and on some bikes even lowered prices. out of gas_and sputtering to a stop You expanded your product line from 3 Well, the people who say that American models 10 years ago to 24 today and once workers and American companies can't again became leader in developing new compete are making one of the oldest mis- motorcycle technology. And each year, on takes in the world. They're betting against virtually every continent of the Earth, America itself, and that's one bet no one you're selling more and more bikes com- will ever win. You know, those people who pared to your competition. You're the only place their bets on someone other than you major motorcycle manufacturer in the is a little bit like the fellow that was going world to have increased production last to the races. And for three nights he year. Like America, Harley is back and dreamed of the number five. So, when he standing tall. got to the track, he opened a program to Last weekend I read a statement by the fifth race, and he looked down to the Harry Smith, the president of Local 175 of number five horse. And the horse's name the International Association of Machinists, 476 Administration of Ronald Reagan, 1987 / May 6 rk, and said-who said-he said, I didn't-he ahead of schedule, you said to us you didn't said: "The tariffs helped to slow up the im- need any more breathing room. You were ports, and that helped us. But the backbone ready to take on the world. And in doing of our comeback as a company is our that, you gave some folks in Washington an people here. They have a lot of skill and important lesson about how we go about t did it. He bet craftsmanship, and they went through a lot buying and selling with other nations. You horse, number of hardship to get the company where it is see, we've shaken hands on an agreement e horse came in today." Well, this is what we need to ensure with most of the other nations of the world, a more competitive future for America, and an-agreement that sets the rules for interna et on horses, I'll this is precisely what I was talking about tional trade We have problems, of course, 1 America. And when I called for a "quest for excellence" with some of those nations-the ones that years ago. You in my State of the Union Address. don't let us sell to their people as freely as Earlier this year, I said it was time to ing room so you they sell to ours. But_the.agreement, called begin a great American discussion about ipe to meet un- the GATT agreement-that's the General our future and how to prepare America for competition. It Agreement on Tariffs and Trade-gives_us V extra weeks of the world of the year 2000 and beyond. ways of problems, and it What kind of a country will we pass to our : looked at you also gives us ways of giving industries the children? It includes being sure we make Harley-Davidson kind of breathing room we gave you. And if the best use of our science and technology; g into shape?" they' re as serious as you were about shaping improving the climate for entrepreneurship k a resounding up-now we're about to begin worldwide and growth; working to build a fair, open, work with new talks on how to make this agreement even and expanding world economy; and finally, : ways to make making sure that American education is the stronger. hapeup was not best in the world. Yes, it's a challenge for Because of the GATT agreement, when agement. Every- every American, the challenge of preparing you were ready to sell more bikes around the factory floor America for the next century, and it's a the world, no one stopped you. But now W we looked at challenge being met by those of you here at there are some in Congress who say, in vone at Harley- Harley-Davidson. effect, that the United States should break ut getting. into You know, when I heard your can-do its word with the other countries. They say as told that you spirit and then saw it confirmed here in my American workers need to run and hide to train, I said, brief tour of your plant, it reminded me of from foreign competition, even if that larley, and turn something having to do back in a younger means other countries will strike back by day of America, when Americans weren't not letting you sell your bikes to their did. You cut the the most popular people back overseas in people. Well,Harley-Davidson- has_/shown) ke a motorcycle the home countries from whence all of us howewrongsthat-is-and-what-the-truth.is. entory. by two- sprang, because, I guess, when we did go American-workers-don't-need-to-hide-from nber of defect- back, we were a little brash as tourists. And anyone America does best when America And with pro- this story has to do with an elderly couple sticks by its word. And American workers increases small, who made their first trip back over there to can take on the best in the world, any- lowered prices. the old country. And one point in their where, anytime, anyplace. No one is better ct line from 3 sightseeing, they were down below Mount than you are. today and once Vesuvius-you know, Pompeii was buried in You may have heard that my tempera- developing new ashes from the explosion there-and the ture's up about some trade legislation that's I each year, on guide was telling them at great length before the Congress right now. On TV the of the Earth, about the force and the power and the heat other night, it was called one of the tough- ore bikes com- energy and so forth-all that Mount Vesuvi- est trade bills of this century. I remember You're the only us had. And in the midst of all of this talk the last time we had a so-called tough trade cturer in the about Mount Vesuvius, the old boy turned bill. It was called Smoot-Hawley, and they production last to his wife and says, "Hell, we got a volun- said it would protect American jobs. In- y is back and teer fire department home put that thing stead, after other nations were through re- out in 15 minutes." [Laughter] taliating, it helped us-or it helped give us, statement by Well, you may not be putting out the fire or at least deepened, the Great Depression of Local 175 of of volcanoes, but you've shown you're just of the 1930's. I'm probably the only one n of Machinists, as effective. Just a few weeks ago, a year here that's old enough to remember that. I 477 May 6 / Administration of Ronald Reagan, 1987 was looking for a job then. [Laughter] in a world market." Twenty-five percent were unemployed, in- The best way to meet foreign competi- cluding me. tion is also the right way: by sticking to our The Harley Davidson example makes agreements with other countries and not strong statement about how govern- breaking our promises, by making sure mentythrough_the judiciousapplication.of other countries also stick to their agree- your laws, the best and the ments with us, and by being the best. As brightest invAmerican management and America prepares for the 21st century, labor come together in ways that will create you've shown us how to be the best. You've new.jobsnew.growthand.new.prosperity.> been leaders in new technology. You've Government's-role,particularlyon the stuck by the basic American values of hard trade front be of creating the And I've heard that you conditions where will flourish; have outstanding schools here in York that and this is: has are teaching those values, too. I can't say there Our trade laws should work to foster that everyplace I've been, because we're growth and trade, not shut it off. And that's still having a job getting some of our schools what's at the heart of our fair trade policy: to catch up. Most of all, you've worked opening foreign markets, not closing ours. smarter, you've worked better, and you've Where U.S. firms have suffered from tem- worked together. And that's the American porary surges in foreign competition, we way. haven't been shy about using our import You know, I received a letter not long laws to produce temporary relief. Now, ago. And I've been sharing this with some there are those in Congress who say our trade policies haven't worked, but you here of your fellow Americans from podiums like this, because this letter pointed out some- at Harley-Davidson are living proof that our thing that I don't think any of us have ever laws are working. The idea of going to man- datory retaliation and shutting down on stopped to think about. This man said that Presidential discretion in enforcing our you can move to Greece, live in Greece, trade laws is moving toward a policy that but you can't become a Greek. You can invites, even encourages, trade wars. It's move to Japan, live there, but you can't time to work to expand the world market, become Japanese; or France and become a Frenchman; or German-or become a-all not restrict it. Today, as many as 10 million American of these things. But he said, everybody or jobs are tied to international trade, includ- anybody from any corner of the world can ing many jobs right here at Harley. For come to America and become an American. more than a century, when America's trade Well, as you've shown again, America is with the world has grown, America has cre- someplace special. We're on the road to un- ated more jobs. When trade has declined, so prosperity, this country have the number of jobs. So, when it comes and there Harley hank you. to making new jobs, free and fair interna- God bless you. tional trade is America's big machine. It's time to gun the engines, not put on the Note: The President spoke at 2:27 p.m. in a brakes. Your chairman, Vaughn Beals, warehouse at the Harley-Davidson plant. summed it up when he said, and I will He was introduced by Vaughn Beals, chair- quote him: "We're sending a very strong man of the board. In his opening remarks, message to our competitors and to the the President responded to an audience international industrial community that U.S. member who shouted "Where's Nancy?" workers, given a respite from predatory Following his remarks, the President re- import practices, can become competitive turned to Washington, DC. 478 HARLEY-DAVIDSON ROUNDTABLE PARTICIPANTS JEFFREY BLEUSTEIN -- CEO OF HARLEY-DAVIDSON. Jeff is the CEO, Chairman of the Board, and President of Harley-Davidson, Inc. Prior to his current responsibilities, Bleustein served the company in many capacities, including president and chief operating officer, executive vice president, and vice president of the parts and accessories division. He served in the engineering department between 1975 and 1984, during which the product line was significantly revitalized and expanded. Technical innovations, such as belt drives and vibration-isolated powertrains were developed during this period. He holds a bachelor's degree in mechanical engineering from Cornell and an M.S. and Ph.D in engineering mechanics from Columbia. HARRY SMITH -- LOCAL UNION PRESIDENT AND MAINTENANCE PAINTER. Harry started working at Harley Davidson in 1969. In that 30 years, he has worked as a production helper, machine operator, and currently, as a maintenance painter. He also serves at the President of Local 175 of the International Association of Machinists. He was elected to that position in 1997 and will serve through next month. He has been an officer of the union on-and-off for 25 years. He has participated in 25 years of negotiations with the company and believes that the union and management have very good relations. He says that his father taught him the importance of good relations in business. He is believer in free trade. However, he is concerned that tariffs in Brazil, for example, hurt U.S. workers. Currently, the bikes Harley sells in Brazil need to be mostly assembled there. He wonders why America doesn't have the same sort of tariff system - forcing other companies to manufacture their goods in America. He participated in a roundtable with President Reagan in the 1980s. He says that the actions taken then to stem the tide of imports were important to help save Harley-Davidson. He believes that Harley was concentrating too much on quantity and too little on quality. The actions taken under Section 201 of the trade laws allowed Harley the time' to refocus on quality - which Harry thinks explains their success. SCOTT FAHS -- BUFFER AND POLISHER. Scott is 33 years old and has worked at Harley for 10 years. He currently is a buffer and polisher - that is, he prepares all the metal parts of the bike to be chromed. He is married and has three children (two daughters, ages 12 and 8, and a son, age 3). Scott sits on the Subcontracting Committee, which includes both workers and managers. The Subcontracting Committee helps the company determine whether it is worth while for the company to outsource on any particular issue. He would like to buy a Harley through the employee purchase plan, but with three children he has higher priorities right now. He registered to vote for the first time in 1992 so that he could vote for President Clinton. He was in the military for three years. He supports free trade, but has some minor concerns about foreign competitors setting up shop in the U.S. TIM MAZYCK - POLISHING JACK OPERATOR. Tim has worked at Harley-Davidson for more than 10 years. He works as a polishing jack operator - that is, he runs the polishing robot. In order to do that, he received 3-4 months of on-the-job training. He is married and has five boys. He would like to purchase a Harley Davidson, but he doesn't have any space to park it. He sees first hand the benefits of trade and that Harley can sell their products abroad. He is concerned that we have such low tariffs on imports and-other countries have such high tariffs. He wants to be a screenwriter one day. Tim is African American. DON ALBRIGHT -- GAUGE LAB INSPECTOR AND COORDINATOR OF APPRENTICESHIP PROGRAM. Don works in Harley-Davidson's gauge lab, which makes sure that all of the instruments that the plant use are calibrated and precise. He has worked at Harley- Davidson since 1964. Up until three years ago, he worked as a tool and dye and gauge maker. In addition, earlier this year, he became the coordinator of Harley's Apprecenticeship and technical training program. He believes that training is extremely important in today's high-technology economy. He talked about the need for workers to understand laser cutting and robotics to work on a manufacturing floor. He is also a firm believer in free trade. PATRICIA KALLBACH - MATERIALS MANAGER. Pat has been at Harley-Davidson for almost 3 years. Previously, she had worked at True Temper hardware. She moved to Harley because she knew it was a terrific place to work and it was local. She supervises about 100 people and is responsible for planning, scheduling, in-bound transportation, shipping, receiving, material handling, purchasing, capital equipment, and supplier quality at York facility. She said, that she "lives trade on a daily basis." Her operation is responsible for sourcing Harley's ventures in Brazil, which is one of their main export markets. She is married and is a working mom, with two children (one boy; age 12, and one girl, age 8). WILLIAM DANNEHL - GENERAL MANAGER, HARLEY-DAVIDSON YORK PLANT. Bill Dannehl has been General Manager, York Operations for Harley-Davidson, Inc. since October 1, 1997. In this current assignment, he is responsible for all operations at the company's York, Pennsylvania vehicle assembly plant. The plant employees over 2,500 people and comprises over 1.2 million square feet of manufacturing and assembly operations. Prior to this most recent assignment, Dannehl has served the company in several operations capacities, including director of manufacturing for York Operations, product plant manager for Powertrain Operations in Milwaukee, and area manager of aluminum component machining also in Powertrain Operations. Dannehl joined Harley- Davidson in October 1993. Dannehl is married and has two daughters. ToM BUFFENBARGER - PRESIDENT OF INTERNATIONAL ASSOCIATION OF MACHINISTS (IAM). The son of an IAM member, Tom Buffenbarger assumed his first IAM leadership post in 1970, at age 20, when he was elected Shop Steward of his apprenticeship group at the General Electric jet engine group in Evendale, OH. Buffenbarger came to IAM Headquarters in 1986 to work in the IAM Organizing Department and two years later, was appointed Executive Assistant to the International President. He served in that position under International Presidents William Winpisinger and George Kourpias. Among his many responsibilities, Buffenbarger has chaired the IAM Blue Ribbon Commission and served as IAM Representative on the Constitutional Committee for our proposed unification with the United Autoworkers and the Steelworkers' Union. Tom Buffenbarger is 48. Tom and his wife, Linda, have two children, Amy and Andrew. SENT BY DEPT. COMMERCE 8-99 ; 5:38 ; OBL- 94562505; # 1/16 / OF / STATES of FAX TRANS MISSION U.S. DEPARTMENT OF COMMERCE OFFICE OF BUSINESS LIAISON I 4TM & CONSTITUTION AVENUE, N.W., ROOM 5062 WASHINGTON, D.C. 20230 PHONE: 202/482-1360 FAX: 202/482-4054 To: Jeff Shesol Fax #: 456 - 2505 Pages: (including this cover sheet.) From: Eric Schwevin Subject: HARLEY-DAVIDSON COMMENTS: Here's Some background on Harley including some of the briefing materials Secretary Daley got before his trip to Harley in September. SENT BY :DEPT. COMMERCE ;11- 8-99 ; 5:38 ; OBL- 94562505; # 2/16 Harley-Davidson Company Inc. Milwaukee, WT Background The Harley-Davidson Company, after-seekingaU-S-govermment-relief-fromJapanese competitionhasturnedits fortunes-aroundbecoming the leading supplier of heavyweight motorcycles (over 800cc) in the United States. The company's main concern in the 1990s has been trying to keep up with demand without compromising product quality. Most Harley- Davidson dealerships report that their allocation of Harley motorcycles are sold-out through the end of 1999. Theifirmexpects.toydoubleaproduction-from1996elevelsby.2003xinime-forits 100th anni versary The demand for Harley-Davidson motorcycles extends overseas as well. This famous American motorcycle manufacturer has becomeaniconofAmeticanaas..Sexportsiof motorcycleseandpartsyhavegrownslsipercentannuallyfom-1987atol998yreahing5626milion lastayears ITA has worked with Harley-Davidson to develop its export strategy, a major part of its strategic growth plan now that the U.S. market has matured. ITA has worked with Harley- Davidson to identify and remove obstacles to their sales in foreign markets. Issues, Past and Present, on which ITA and Harley-Davidson have worked together Market. Motorcycles Japan yhas regulations that prohibit tandem riding (carrying-a passenger) and set a differential, lower speed limit for highways hese regulations hamper sales opportunities of large-size motorcycles to convince Japan National Agency (NPA) to regulations The regulations that ban tandem riding and lower the speed limit for motorcycles on highways are unique to Japan. Other countries have not seen the need to regulate these activities. Office of Consumer Goods has reviewed much of the safety studies on this issue, which generally conclude that tandem riding is not a safety hazard or concern and that the lower speed limits that are different for motorcycles than other vehicles on highways may actually increase accident risks. Thanksato,DOGeffortsit are continuing on the tandem riding ban, and the U.S. Embassy will soon file a petition with Japan's Office of Trade and Investment Ombudsman. Previously, DOC and others urged the NPA to change operator licensing procedures for large-size motorcycles that were extremely burdensome. In September 1996, the NPA enacted guidelines that would allow driving schools to issue licenses for riders using a large-size motorcycle after a completion of the class. These procedures will likely make riding safer. Moreover, the procedures have contributed to a significant increase in the number of licenses issued to riders using a large-size motorcycle. apanisthesecond-largest-foreignmarketforUS.exportsiofnotorcyclesandparts Harley-Davidson views expanding opportunities in the Asian markets as a key company strategy. 1 SENT BY DEPT. COMMERCE ;11 8-99 ; 5:39 ; OBL- 94562505 # 3/16 Taiwan Air Emission Standards for.Motorcycles (Taiwan Accession) The use large- n Taiwan. Taiwan had proposed ending the ban but had proposed enforcing engine emissions standards similar to those on small motorcycles. This proposal would have resulted in Taiwan's engine emissions standards being the strictest in the world and would have effectively served as a trade barrier for large-size motorcycles such as those produced in the United States. Taiwan has a high per capita level of motorcycle usage, and Harley-Davidson believes that the market has great potential. The results of the WTO accession negotiations will allow the U.S industry to sell larg motorcycles in Taiwan-soon after accession. Harley-Davidson fficials are elated with the proposed agreement. Malaysia Air Emission Standards for Motorcycles Malaysia is contemplating adopting Taiwanese emission standards which, as mentioned above, would effectively cut Harley-Davidson motorcycles out of the market. DOC staff expressed our concerns about any proposed emission standards to the appropriate Malaysian authoritics, who to this point have delayed any implementation plans. Brazil Motorcycle Tariffs In March 1996, officials from Harley-Davidson met with DOC staff to discuss a tariff increase in April 1995 by the Brazilian Government that was hampering its export sales. Harley- export Emotorcyc virtually stopped when were increased from 20 percent to 70 percent. DOC staff was able to include this issue in then-USTR Ambassador Kantor's briefing book during the Hemispheric Summit in March 1996. The Ambassador discussed the matter with Brazil's Minister of Foreign Affairs. Theitariff on-motorcycles was reducedator? Spercentiasrof April 1, 1996 and was scheduled to be reduced 3 percent annually tile 20 percent in 2001 European Unic Noise Standards for Motorcycles Initherlate 1980 Europe, had, planned to adopt unusually motorcycles, without addressing the problem of after-market modifications. Although EU noise levels would not be greatly improved, sales of both U.S. and certain European manufacturers would have been severely restricted. ughDOCefforts,theserestrictions.were-loweredand delayed, allowing U.S. firms ample time to make modifications so that they could sell motorcycles in the European Union. Prepared by: John-Vanderwolf IT of Consumer Goods x0348 2 SENT BY DEPT. COMMERCE ;11- 8-99 ; 5:39 ; OBL- 94562505; # 4/16 TOUR OF HARLEY-DAVIDSON ASSEMBLY PLANT AND LUNCH WITH EMPLOYEES DATE: Friday, September 24, 1999 TIME: 10:30 - 12:00 PM FROM: Lucie Naphin, Director, Office of Business Liaison Prepared by: Roger Kiley (x1360) I. OBJECTIVES: Tour of Harley-Davidson Assembly Plant and informal discussion on the benefits of trade with employees. II. PARTICIPANTS: Secretary Daley Senator Ashcroft Karl Eberle, VP and GM of Harley-Davidson Bus participants 70-100 employees for the informal discussion in the cafeteria. The plant has approximately 300 employees. III. PRESS PLAN: Open IV. SEQUENCE OF EVENTS: 10:30 - 10:55 AM -Welcome by Karl Eberle, followed by a tour of the assembly line. 10:05 - 10:45 AM -Secretary and party will be led to the employee cafeteria. -Bus participants will get in one line for food and employees in another, and will sit down and eat together. -Karl Eberle will introduce Sen. Ashcroft for remarks. -Karl Eberle will introduce Secretary Daley for remarks. -Secretary Daley will make brief remarks and open the discussion with employees. V. ATTACHMENTS: Background Materials on Harley-Davidson Harley-Davidson Success Story 5:40 ; OBL- 94562505;# SENT BY DEPT. COMMERCE ;11- 8-99 ; Harley-Davidson Company Inc. Kansas City, KS Milwaukee, WI Background The Harley-Davidson Company, after seeking and receiving U.S. government relief from Japanese competition, has turned its fortunes around becoming the leading supplier of heavyweight motorcycles (over 800cc) in the United States. The company's main concern in the 1990s has been trying to keep up with demand without compromising product quality. Most Harley-Davidson dealerships report that their allocation of Harley motorcycles is sold-out through the end of 1999. The firm expects to double production from 1996 levels by 2003, in time for its 100th anniversary. The demand for Harley-Davidson motorcycles extends overseas as well. U.S. exports of motorcycles and parts have grown 15 percent annually from 1987 to 1998, reaching $626 million last year or about 35% of industry sales. ITA has worked with Harley-Davidson to develop its export strategy, a major part of its strategic growth plan now that the U.S. market has matured ITA has worked with Harley Davidsonito identify and remove obstacles to their sales in foreign markets: Country issues and concerns where ITA has assisted Harley-Davidson include Japan, Taiwan, Brazil, Malaysia, Thailand, Indonesia, and the EU Three ssues.on.which Ajhas done significant work concern Japan, Taiwan, and Brazil he issue in Japan has dealt with regulations for motorcycles on highways and motorcycle operating licenses. These issues have been addressed to Japan's National Police Agency through Deregulation negotiations and through Japan's Office of Trade Ombudsman. The issues with Taiwan have been the removal of a ban on the manufacturing and importation of large motorcycles, strict emissions restrictions, and a regulation prohibiting motorcycles on highways. Most of these issues were resolved during negotiations with Taiwan concerning its accession to the WTO. The final issue pursued by ITA was the lowering of tariffs on motorcycles in Brazil. When Brazil unilaterally and substantially increased tariffs on imported motorcycles, ITA and USTR quickly expressed the USG's concerns. As a result, Brazil decided to gradually lower these tariffs. Talking Points The Harley Davidson Company:has been a great success story of the 1980s and 1990s and an example that U.S. trade policy can work. - [commend how you and your 6,000+ employees have worked closely together to make quality products that are so popular here and abroad Your company has become an icon of Americana as U.S. exports of motorcycles and parts have grown 15 percent annually from 1987 to 1998, reaching $626 million last year These exports have helped to create numerous jobs for U.S. workers The opening of this plant in Kansas City is a testament to the success of this company. 5:41 ; OBL- 94562505; # 9/16 SENT BY DEPT. COMMERCE ;11- 8-99 ; Harley-Davidson, Inc., 3700 W. Juncau Ave., P.O. Box 653, Milwaukee. WI 53201 NEWS 414/342-4681 For Immediate Release Contact: Pat Davidson 414-343-8002 HARLEY-DAVIDSON, INC. REPORTS RECORD SECOND QUARTER SALES AND EARNINGS Milwaukee, Wis., 1999 - Harley-Davidson, Inc. (NYSE: HDI) today announced record sales and earnings for its second quarter ended June 27, 1999 The Company's second quarter sales were $608.7 million, an increase of 17.7 percent over the second quarter last year. Earnings per share for the second quarter were 44 cents, a 22.9 percent increase compared to last year. "This is shaping up to be another record year," saideJeffrey L. Bleustein, chairman and chief executive officer of Harley-Davidson,Inc: "The worldwide heavyweight motorcycle market is in the midst of its eighth consecutive year of growth," said Jeffrey L. Bleustein, chairman and chief executive officer of Harley- Davidson, Inc. "Retail registration data through May shows the worldwide (651cc+) motorcycle market grew 13.9 percent relative to 1998, while registrations of Harley-Davidson® and Buell® motorcycles grew 30.6 percent during the same period. Infact, our U.S., Europe and Asia Pacific markets are each experiencing double-digit retail registration growth. "Based on the market's growth and our manufacturing capabilities, we have increased our production target for Harley-Davidson motorcycles for 1999 from 168,000 to 172,000 units. However, even with this planned production increase, it is unlikely that the Company will be able to sustain a thirty-plus percent rate of retail registration growth during the second half of the year." Motorcycles and Related Products Segment Second quarter sales of Harley-Davidson motorcycles were $468.6 million, an increase of 16.9 percent over the second quarter last year. Shipments of Harley-Davidson motorcycles in the second quarter totaled 44,771 units, up 7,018 units or 18.6 percent over last year. With the increase in the Company's 1999 production target, the third quarter production target is 42,000 units. Buell motorcycle sales for the second quarter totaled $12.5 million on shipments of 1,512 units, compared to $13.4 million on shipments of 1,497 units last year. During the second quarter, Buell motorcycle production was interrupted for five weeks until the parts associated with its recall campaign could be supplied to the market. As a result, Buell's motorcycle production target for 1999 has been reduced by 300 units to 7,700. -more- 5:42 ; OBL- 94562505 #10/16 SENT BY DEPT. COMMERCE ;11- 8-99 ; Harley-Davidson, Inc. - Add Two Forward-Looking Statements The Company intends that certain matters discussed in this release are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified because the context of the statement will include words such as the Company "believes," "anticipates," "expects" or "estimates" or words of similar meaning. Similarly, statements that describe the Company's future plans, objectives, targets or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this release. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this release are only made as of the date of this release, and the Company undertakes no obligation to publicly update such forward- looking statements to reflect subsequent events or circumstances. The Company's ability to reach targeted production objectives and to increase or sustain growth rates in various areas depends upon, among other factors, (i) continued realization of production efficiencies at its manufacturing facilities; (ii) successful implementation of production capacity increases in its facilities; (iii) the sale of all motorcycles the Company has the capacity to produce; (iv) product availability; and (v) successful introduction of new products. In addition, the Company could experience delays in the operation of manufacturing facilities, work stoppages, difficulty with suppliers, natural causes or other factors. Risk factors are also disclosed in securities documents previously filed by the Company with the Securities and Exchange Commission Harley-Davidson, Inc. is the parent company for Harley-Davidson Motor Company, Buell Motorcycle Company and Eaglemark Financial Services, Inc. Harley-Davidson Motor Company, the only major U.S.-based motorcycle manufacturer, produces heavyweight motorcycles and offers a complete line of motorcycle parts, accessories, apparel, and general merchandise. Buell Motorcycle Company produces sport and sport-touring motorcycles. Eaglemark Financial Services, Inc. provides wholesale and retail financing, insurance and credit card programs to Harley-Davidson dealers and customers. TABLES FOLLOW 5:42 ; OBL- 94562505 #11/16 SENT BY DEPT. COMMERCE ;11- 8-99 ; Harley-Davidson, Inc. Condensed Consolidated Balance Sheets (In thousands) Jun 27, Dec 31, June 28, 1999 1998 1998 (unaudited) (unaudited) ASSETS Current assets: Cash and cash equivalents $209,984 $165,170 $ 154,475 Accounts receivable, net 100,813 113,417 91,336 Finance receivables, net 369,218 360,341 302,247 Inventories 149,060 155,616 131,525 Other current assets 49.745 50.419 44,565 Total current assets 878,820 844,963 724,148 Finance receivables, net 426,000 319,427 346,097 Other long-term assets 757.370 755,819 675,756 Total assets $2,062.190 $1,920,209 $1,746,001 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of finance debt $ 217,655 $ 146,742 $ 125,951 Other current liabilities 324.273 321.773 294,454 Total current liabilities 541,928 468,515 420,405 Finance debt 280,000 280,000 280,000 Other long-term liabilities 62,895 69,700 63,308 Postretirement health care benefits 73,934 72,083 70,164 Shareholders' equity 1,103,433 1.029.911 912.124 Total liabilities and shareholders' equity $2.062,190 $1,920,209 $1,746.001 SENT BY:DEPT. COMMERCE ;11- 8-99 ; 5:42 ; OBL- 94562505 #12/16 651cc+ Motorcycle Retail Registrations (Units), thru May. 1999 1998 % change UNITED STATES 126,607 98,579 +28.4 HDI 59,408 43,955 +35.2 EUROPE 166,162 152,279 +9.1 HDI 10,037 8,756 +14.6 JAPAN/AUSTRALIA 27,515 30,314 -9.2 HDI 5,001 4,312 +16.0 TOTAL 320,284 281,172 +13.9 HDI 74,446 57,023 +30.6 HDI includes both Harley-Davidson and Buell motorcycles Sources: Motorcycle Industry Council, Giral S.A., JAMA, ABS ### SENT BY DEPT. COMMERCE ;11- 8-99 ; 5:43 ; OBL- 94562505 ; #13/16 avarso ASSOCIATION. Dept. 574 3700 W. Juneau Ave. Milwaukee, WI 53208 F Phone: (414) 343-4600 Fax: (414) 343-4990 July 30, 1999 The Honorable Charlene Barshefsky United States Trade Representative Office of the United States Trade Representative 600 17th Street, N.W. Washington, DC 20508 Re: UnitediStates lirade Agenda Dear-Ambassador-Barshefsky On behalf of the American motorcycle manufacturing industry, the United S tates Motorcycle Manufacturers Association (USMMA) would to express its appreciation for your support of its members overthe years.and your continuing efforts on their behalf." The membership of USMMA, which includes Harley-Davidson Motor Company, accounts for more than 95% of the annual motorcycle production by American-owned manufacturers. I would also like to thank you for my recent appointment to ISAC4 and the opportunity to attend last month's plenary meeting of the Industry Sector and Functional Advisory Committees in preparation for the WTO Ministerial in Seattle later this year. The purpose of this letter is to restate the American motorcycle industry's priorities in the upcoming negotiations, much of which has been shared previously with members of your staff as well as with Commerce Department personnel. The following issues are of particular concern to American-motorcycle producers Tariff Barriers: American-motorcycles are subjected to varying tariff rates around the world which place us at a greaticompetitive disadvantage compared to foreign domestic producers. While the highest duty rates are generally imposed by developing countries (exceeding 150% in some cases!) the most significantitariff.barrie our members face in the aggregate is actually. imposed,by the European Union TherE Ulsimotorcy than four times greater than the duty imposed by the United States:on imports of European brand motorcycles 6.6% sapproximately 5% While the EU's duty rate by itself may not seem high at first glance, its aggregate impact is far greater than the much higher duties imposed by developing countries. The reason for this is due to the fact that the size of Europe's heavyweight motorcycle market is greater than the size of the SENT BY DEPT. COMMERCE ;11- 8-99 ; 5:43 OBL- 94562505 14/16 The Honorable Charlene Barshefsky July 30, 1999 Page 2 United States heavyweight motorcycle market. Further, Europe's market is far more price competitive than in the U.S., due to the sheer number of small and large size producers. Price competition has also been extremely keen due to Europe's economic problems. These factors account for the fact that while Harley-Davidson, for example, enjoys an approximate 46% market share in the United States, its market share of the European market is less than 6%. Although Harley-Davidson's annual motorcycle exports to Europe now exceed 20,000 units per year, their number could grow significantly - at the expense of European competitors like BMW, Ducati and Triumph - if Harley-Davidson motorcycles were not penalized by a duty more than four times higher than the U.S. motorcycle import duty. We request that the issue of the European Union's excessive motorcycle duties be part of the U.S. trade agenda. Additionally, we would ask that your office also take note of the extraordinarily high duty rates imposed on large CBU motorcycles by developing countries. These rates are preventing Harley- Davidson and other American producers from establishing a market presence, let alone expand any existing sales. Given the economic turnaround that is now taking place in Southeast Asia in particular, these high rates serve no purpose other than to protect domestic producers. In particular, we would single out the motorcycle tariffs in India, China, Indonesia, Malaysia, Philippines, Thailand, Vietnam, Brazil, Argentina and Korea. Technical Barriers to Trade American motorcycle producers face certain technical barriers to trade stifling their export opportunities Your office and the Department of Commerce have been very helpful in the past in addressing some of the more significant barriers, such as Japan's restrictive rider licensing test for operators of large class motorcycles, and Taiwan's misapplication of extreme, small motorcycle emissions standard to motorcycles of all types, regardless of engine size. (Most recently, Harley-Davidson and USMMA have been working closely with the Department of Commerce to eliminate another technical barrier to trade imposed by the Government of Japan, namely, its ban ontandem riding! motorcycles carrying a passenger, on motorways. This ban, the only one of its kind in the world, stifles the sale of American-made heavyweight motorcycles which are especially suitable for touring.) Taiwan's attempt to apply emissions standards developed for very small motorcycles to motorcycles of all types regardless of engine size is part of a long term trend, in our opinion. We believe that countries will find it appealing, like Taiwan, to adopt unreasonably restrictive technical standards in the guise of improving the environment, when their primary purpose is to protect domestic producers from foreign competition. In Taiwan, for example, that country previously agreed to open its market to heavyweight motorcycles by ending its ban on motorcycles larger than 150cc, but steadfastly refused to adopt appropriate emissions standards for the different emissions "signature" of large class motorcycles, in contrast to the practice of OBL- 94562505 SENT BY DEPT. COMMERCE ;11-8-99 ; 5:44 The Honorable Charlene Barshefsky July 30, 1999 Page 3 other countries. The result was that while removing a de jure trade barrier, i.e., the 150cc+ motorcycle ban, Taiwan was erecting a de facto trade barrier in its place, by applying its small motorcycle emissions standard across the full spectrum of larger motorcycles, regardless of size. It was only after your office's vigorous intervention during the most recent accession talks that Taiwan acquiesced and agreed to develop a fair standard for large class motorcycles. American motorcycle producers are seeing further examples in the world of countries such as India adopting.so-called environmental standards which are believed to be nothing more than attempts to protect domestic producers? There is noftransparencysin their adoption, nor uniform enforcement. This trend is not necessarily limited to developing countries. There are similarly disturbing signs within the European Union which currently is developing next generation emissions standards. In this regard, it appears that one of our competitors is working closely with its government to take an extreme position in rulemaking, which unduly favors this competitor's particular type of automobile technology. If the latest proposals are adopted, Harley-Davidson and other American producers could be barred from the market entirely, or severely and unfairly disadvantaged due to mandated unnecessary and costly changes to the classical "look, sound and feel" of their motorcycles. We believe these developments are part of a trend. We would urge the United States to be very skeptical of and challenge the motives of those countries seeking to impose unjustified extreme emissions and other technical standards on American motorcycle manufacturers, as compared to the world norms for such standards. Thank you for the opportunity to express our views. We look forward to working with you and your colleagues in the months to come. Very truly yours, UNITED STATES MOTORCYCLE MANUFA TURERS ASSOCIATION Timithy K. Houltu Timothy- K Hoelter President and Secretary General jn cc: The Honorable William M. Daley FYI: J. Hayden Boyd David H. Burns SENT BY : DEPT. COMMERCE ;11- 8-99 ; 5:44 ; OBL- 94562505 #16/16 Talking Points on IP Issues Trade Education Visit York, PA Harley Davidson claims that the exhaust sound of its V-Twin motorcycle engines is a trademark for its motorcycles and is seeking a federal trademark registration for that sound. Nine companies (Custom Chrome, Honda, Kawasaki, Mid-USA Cycle Parts, Nostalgia Motorcycle, Polaris Industries, Suzuki, S&S Cycle and Yamaha) object to Harley Davidson's registering that sound as its trademark and have filed oppositions with the PTO's Trademark Trial and Appeal Board (TTAB). The TTAB has not yet rendered a decision on the case. or. C Joshua S. Gottheimer 11/09/99 11:30:06 AM Record Type: Record To: Jeffrey A. Shesol/WHO/EOP@EOP CC: Subject: Forwarded by Joshua S. Gottheimer/WHO/EOP on 11/09/99 11:30 AM Carl Haacke 11/09/99 11:28:25 AM Record Type: Record To: Joshua S. Gottheimer/WHO/EOP@EOP CC: Subject: this one is pretty cool: 1973 The.US.exported 6 300 motorcycles at a value $5.4 million 1998 The US exported 65,800 motorcyc at a value, $366 2.million more on the way. Carl Haacke 11/09/99 12:53:27 PM Record Type: Record To: Jeffrey A. Shesol/WHO/EOP@EOP CC: Joshua S. Gottheimer/WHO/EOP@EOP, Timothy E. Punke/OPD/EOP@EOP Subject: Re: Total Exportsin 1973 were$91 8 billion ($201 million.in 1998-dollars) by 1998 exports grew by377 orafter adjusting for inflation to $959 billion. Since Feb 1973, the economy has created 53.4 million new jobs. In 1973, exports accounted for 7% of the economy. By 1998, exports of goods now account for 11%. 1981-1989: During the Reagan years exports grew 43 percent - after adjusting for inflation. Today: Since Clinton came into office (1993-1998), exports have grown 158% - after adjusting for inflation. 1981 - 1992: During the Reagan-Bush years exports made up 2.75% of the US economy. Today: Exports account for 3.37% percent of the US economy. 5:40 ; OBL- 94562505; # 6/16 SENT BY : DEPT. COMMERCE ;11- 8-99 ; Harley-Davidson Kansas City, Missouri Contact: Kal Demitros (414) 343-4587 Harley-Davidson produces heavyweight motorcycles and offers a complete line of motorcycle parts, accessories, apparel, and general merchandise. The Kansas City Plant has 400 union employees, and was recently named one of Industry Week's 100 Best-Managed Companies in the world. The companies economic impact on Missouri has been increasing dramatically, from $44.5 million in 1996, to $77.8 million in 1998. Exportinglis responsiblefor-a-large part of this success: 30 percent of bikes made are for export. However, florts increase the foreign market have been stymied by tari fibarriers as much as 4° times greater than the U.S. tariff, and by technical barriers that discriminate against foreign imports However, working in partnership (2) with the Department of Commerce, Harley has begun to work out these di fficulties, with their Japanese market growing at an annual rate of 43% since 1996 NOV 08 1999 19:17 FR HARLEY DAVIDSON YORK 717 843 0850 TO 912024562505 P.01/09 MOIOR Harley-Davidson Motor Company HARLEY DAVIDSON COMPANY To: Jack Gearan Date: November 8, 1999 Company Name: Whitehouse Staff Fax: 202-456-2505 Phone: 202-456-2777 From: Bill Dannehl Fax: 717-852-6794 Vice President & General Manager Phone: 717-852-6701 Total Number of Pages: 19 (including cover sheet) Subject: Historical Data on York Operations Jack - Attached are various notes on the history of the York facility. We did not have a consolidated document with the history, so we've pull together a compilation of facts from several sources. I'm not sure if this gets to heart of your concern, so if you need more information, please let me know. The information on trade statistics will be released in the press announcement from our corporate office. I will forward a copy of that to you when we receive it later this evening or early tomorrow morning. Regards, Bill P.S. Jack, I've included our most recent quarterly earnings release - it provides some additional content The information contained in or attached to this facsimile message is intended only for the confidential use of the individual or entity to which it is addressed and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the named recipient or an agent responsible for delivering it to the named recipient, you are hereby notified that you have received this document in error and any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately by telephone and return the original documents in the address above by mail. NOV 08 1999 19:18 FR HARLEY DAVIDSON YORK 717 843 0850 TO 912024562505 P.02/09 Site history On 232 acres of land in York, Pennsylvania, the plant was built for the Navy under a facilities contract by the York Safe and Lock Company in 1941. During 1946, the site was taken over by the Navy and used as an Ordnance Plant. Peak employment during World War II was 3,650. Acquired by American Machine and Foundry in 1963, the plant produced military and bowling equipment AMF purchased Harley-Davidson in 1969. Trade Davidson motorcycl production unit rolls off York assembly in February, 1973 thent now During 1970's, AMF produced huge quantities of Harley-Davidson motorcycles; 50,000 a year at production peak. By 1981, Davidson's marketisharelinithe U.S. dwindled to 5-2% The company experienced severe productuqualitysproblems: AMF sold Harley-Davidson to 13 investors. Faced with a recession in 1981-82, the newly formed Harley-Davidson Motor Company, Inc. focused on Manufacturing strategy for the turnaround was centered on three strategic elements: just-in-time methodology, statistical operator control and employee involvement. Harley-Davidson went public in 1985. Elsewhere? Today Harley= Davidson York employs. 700 employees 2,300 are members.of the International it says Association of Machinists and Aerospace Workers union (" overall that H-D York produces over 0-motorcycles per day ork Final Assembly manufactures and assembles Dyna, Softail and Touring motorcycles. Our new final assembly plant in Kansas City, Missouri produced the Sportster family. Our 1999 calendar year total company production is projected at 175,000 units. We have established a year 2000 production target at 193,000 units. HDS York operatesiunder a Partnering philosophy with our union The innovative management/union relationshipsprovides the foundation for our operations. The Partnership is driven by 23 elements of share decision making. NOV 08 1999 19:18 FR HARLEY DAVIDSON YORK 717 843 0850 TO 912024562505 P.03/09 For Immediate Release Financial Contact: Pat Davidson 414-343-8002 Media Contact: Kal Demitros 414 343-4587 HARLEY-DAVIDSON, INC. REPORTS RECORD-THIRD QUARTER <PERFORMANCEAND ANNOUNCES UNIT PRODUCTION INCREASES Milwaukee, Wis., October 11, 1999 - Harley-Davidson, Inc. (NYSE: HDI) today announced recordsalesand-eanings-for-its-third-quarter-ended-Septeber-26-1999The Company's third quarter sales were $623.2 million, an increase of 20.5 percent over the third quarter last year. Earnings per share for the third quarter were 42 cents, a 25.0 percent increase compared with last year. "During the third quarter we launched a completely redesigned Softail® family consisting of seven models, all of which are powered by our new Twin Cam 88B™ counterbalanced engine,' said Jeffrey L. Bleustein, chairman and chief executive officer of Harley-Davidson, Inc. "Based upon the positive reception of our new model year 2000 products by the motorcycle press, our dealers and our customers, and the continuing strength of the worldwide heavyweight motorcycle market, we have increased our Harley-Davidson motorcycle production target for 1999 to 175,000 units," said Bleustein. "With this same confidence in the motorcycle market and our production capabilities, we are establishing a production target of 193,000 Harley-Davidson motorcycles for the 2000 calendar year." Motorcycles and Related Products Segment - Third Quarter Results Third quarter sales of Harley-Davidson motorcycles were $455.7 million, an increase of 18.9 percent over the third quarter last year. Shipments of Harley-Davidson motorcycles totaled 42,615 units, up 6,187 units or 17.0 percent over last year. Buell® motorcycle sales for the quarter totaled $16.7 million on shipments of 1,984 units, an increase of $7.5 million or 915 units relative to last year. Sales of Parts and Accessories (P&A), which consist of Genuine Motor Partsᵀ and Genuine Motor Accessories™, totaled $109.6 million, a 21.5 percent increase from the year-ago quarter. Third quarter sales of General Merchandise, which consists of MotorClothes apparel and collectibles, totaled $40.9 million, up 22.2 percent over the same period last year. Third quarter gross margin was 32.8 percent of revenue, down slightly from 33.1 percent of revenue last year. Additional costs associated with the most extensive product launch in recent company history and the effect of a higher proportion of lower margin Sportster® motorcycles resulted in a lower gross margin. Third quarter operating margin for the Motorcycles and Related Products Segment was 15.4 percent of revenue, which is identical to last year's record third quarter operating margin. 1 of 7 NOV 08 1999 19:18 FR HARLEY DAVIDSON YORK 717 843 0850 TO 912024562505 P.04/09 "These record earnings and margin are noteworthy considering the significant investments that we are making in our future and the aggressive product launch that we executed during the quarter," said Bleustein. The worldwide heavyweight motorcycle market continues to grow rapidly. In the U.S., total industry retail registrations have grown at 22.7 percent, while registrations of Harley- Davidson and Buell motorcycles have grown at 25.7 percent through August, increasing the Company's market share. Harley-Davidson and Buell are also gaining market share in both the Europe and Asia/Pacific markets. (See table that follows for more detail.) Financial Services Segment Harley-Davidson Financial Services, Inc. (formerly Eaglemark Financial Services, Inc.), a subsidiary of Harley-Davidson, Inc., reported third quarter operating income of $7.5 million, up $3.9 million compared to the year-ago quarter. The subsidiary financed 22.5 percent of the Company's U.S. motorcycle retail sales compared with 19.9 percent during the year ago period. It has further benefited from the increase in Harley-Davidson's U.S. retail sales volume. Share Repurchase During the third quarter, Harley-Davidson repurchased approximately 1.4 million shares of its common stock. This brings the 1999 year-to-date repurchase to a total of 2.4 million shares. Nine Month Results For the nine month period, sales totaled $1,790 million, a 19.3 percent increase over the year-ago period. Diluted earnings per share were $1.24, an increase of 26.0 percent compared to the first nine months last year. Through the first nine months of this year, Harley-Davidson motorcycle revenue was $1,361 million, an 18.8 percent increase, while Buell motorcycle revenue was $45.3 million, a 29.9 percent increase compared with the same period in 1998. For the first nine months of 1999, P&A revenue totaled $284.4 million, a 22.1 percent increase, while General Merchandise revenue totaled $97.6 million, a 14.6 percent increase compared with the same period in 1998. Forward-Looking Statements The Company intends that certain matters discussed in this release are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be statements that describe the Company's future plans, objectives, targets or goals. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this release. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this release are only made as of the date of this release, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. 2 of 7 NOV 08 1999 19:19 FR HARLEY DAVIDSON YORK 717 843 0850 TO 912024562505 P.05/09 The Company's ability to reach targeted production objectives depends upon, among other factors, (i) continued realization of production efficiencies at its manufacturing facilities; (ii) successful implementation of production capacity increases in its facilities; (iii) the sale of all motorcycles the Company has the capacity to produce; (iv) product availability; and (v) successful introduction of new products. In addition, the Company could experience delays in the operation of manufacturing facilities, work stoppages, difficulty with suppliers, natural causes or other factors. Risk factors are also disclosed in securities documents previously filed by the Company with the Securities and Exchange Commission. Harley-Davidson, Inc. is the parent company for Harley-Davidson Motor Company, Buell Motorcycle Company and Harley-Davidson Financial Services, Inc. Harley-Davidson Motor Company, the only major U.S.-based motorcycle manufacturer, produces heavyweight motorcycles and offers a complete line of motorcycle parts, accessories, apparel, and general merchandise. Buell Motorcycle Company produces sport and sport-touring motorcycles. Harley-Davidson Financial Services, Inc. provides wholesale and retail financing, insurance and credit card programs to Harley-Davidson dealers and customers. TABLES FOLLOW 3 of 7 NOV 08 1999 19:19 FR HARLEY DAVIDSON YORK 717 843 0850 TO 912024562505 P.06/09 Harley-Davidson, Inc. Condensed Consolidated Statements of Income (Unaudited) (In thousands, except per share amounts) Three Months Ended Nine Months Ended Sep. 26, Sep. 27, Sep. 26, Sep. 27, 1999 1998 1999 1998 Net sales $623,193 $517,198 $1,790,476 $1,500,889 Gross profit 204,658 171,139 606,786 498,542 Operating income Motorcycles and related products 95,907 79,870 287,524 234,167 Financial services 7,514 3,599 19,274 12,539 Corporate expenses (2,024) (3,330) (7,450) (8,521) Total operating income 101,397 80,139 299,348 238,185 Interest income, net 2,090 1,056 5,571 2,442 Other income (expense), net (556) 1,287 (1,019) (508) Income before provision for taxes 102,931 82,482 303,900 240,119 Provision for income taxes 37,569 30,110 110,924 87,647 Net income $ 65,362 $ 52,372 $ 192,976 $ 152,472 Earnings per common share: Basic $.43 $ .34 $1.26 $ 1.00 Diluted $.42 $ .34 $1.24 $ .99 Weighted-average common shares: Basic 152,196 152,434 152,770 152,069 Diluted 154,604 154,903 155,294 154,558 4 of 7 NOV 08 1999 19:19 FR HARLEY DAVIDSON YORK 717 843 0850 TO 912024562505 P.07/09 Harley-Davidson, Inc. Condensed Consolidated Balance Sheets (In thousands) Sep. 26, Dec. 31, Sep. 27, 1999 1998 1998 (unaudited) (unaudited) ASSETS Current assets: Cash and cash equivalent $163,834 $ 165,170 $ 122,146 Accounts receivable, net 125,554 113,417 112,305 Finance receivables, net 419,955 360,341 337,924 Inventories 166,812 155,616 145,019 Other current assets 53,369 50,419 52,105 Total current assets 929,524 844,963 769,499 Finance receivables, net 389,263 319,427 352,866 Other long-term assets 766,991 755,819 695,492 Total assets $2,085,778 $1,920,209 $1,817,857 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of finance debt $173,974 $146,742 $ 132,413 Other current liabilities 388,427 321,773 302,177 Total current liabilities 562,401 468,515 434,590 Finance debt 280,000 280,000 280,000 Other long-term liabilities 66,652 69,700 63,510 Postretirement health care benefits 74,183 72,083 70,605 Total shareholders' equity 1,102,542 1,029,911 969,152 Total liabilities and shareholders' equity $2,085,778 $1,920,209 $1,817,857 S of 7 NOV 08 1999 19:19 FR HARLEY DAVIDSON YORK 717 843 0850 TO 912024562505 P.08/09 Harley-Davidson, Inc. Net Sales and Motorcycle Shipment Data Three Months Ended Nine Months Ended Sep. 26, Sep. 27, Sep. 26, Sep. 27, 1999 1998 1999 1998 NET SALES (in thousands) Harley-Davidson® motorcycles $455,650 $383,336 $1,360,733 $1,145,554 Buell motorcycles 16,749 9,234 45,314 34,893 Parts & Accessories 109,604 90,222 284,353 232,826 General Merchandise 40,919 33,473 97,625 85,164 Other 271 933 2,451 2,452 Total net sales $623,193 $517,198 $1,790,476 $1,500,889 HARLEY-DAVIDSON UNITS Motorcycle shipments: United States 31,764 27,126 97,540 79,776 Export 10,851 9,302 31,027 28,887 Total 42,615 36,428 128,567 108,663 Motorcycle product mix: Touring 27.8% 26.3% 27.2% 25.1% Custom 47.3 49.9 49.2 52.3 Sportster 24.9 23.8 23.6 22.6 Total - 100.0 100.0 100.0 100.0 BUELL UNITS Motorcycle shipments 1,984 1,069 5,509 3,916 6 of 7 NOV 08 1999 19:19 FR HARLEY DAVIDSON YORK 717 843 0850 TO 912024562505 P.09/09 Available 651cc+ Motorcycle Retail Registrations (Units). 1999 1998 % change UNITED STATES (August YTD) 207,529 169,090 +22.7 HDI 95,755 76,190 +25.7 EUROPE (July YTD) 242,086 213,345 +13.5 HDI 15,156 12,957 +17.0 JAPAN/AUSTRALIA (July YTD) 40,084 39,155 +2.4 HDI 7,067 6,379 +10.8 TOTAL 489,699 421,590 +16.2 HDI 117,978 95,526 +23.5 HDI includes both Harley-Davidson and Buell motorcycles Sources: Motorcycle Industry Council, Giral S.A., JAMA, ABS 77 of7 ** TOTAL PAGE. 09 ** OBL- 945625051 SENT BY : DEPT. COMMERCE ;11- 8-99 ; 5:40 ; Harley-Davidson Motor Company, 3700 West Juncau Avc., PO Box 65, Milwaukec, WI MOIOR HARLEY DAVIDSON NEWS COMPANY 414/342-4680 Contact: Kal Demitros (414) 343-4587 FOR IMMEDIATE RELEASE HARLEY-DAVIDSON SELECTED BY INDUSTRYWEEKMAGAZINEAS ONE OF-THE WORLD S 100 BEST-MANAGED COMPANIES MILWAUKEE (September-l-1999)Harley-Davidson, Inc. (NYSE: HDI) is on the fourth annual list of Industry Week's 100 Best-Managed Companies. Chosen by editors at IW, the list includes the world's 100 best-managed companies. The report appeared in the August 16, 1999, issue of Industry Week Candidates for Industry Week's 100 Best-Managed Companies were culled from the Industry Week 1000, a list of the world's largest publicly held manufacturing companies based on revenues. Waltham, Mass.-based Primark supplied the data for the IW 1000, which was published in June. Each company was selected after a lengthy evaluation that included the following four steps: analysis of the company's financial performance; review of a questionnaire that each IW 1000 company was given an opportunity to complete; research into each company's practices in areas such as philanthropy and safety; and voting by a panel of more than 100 business leaders, analysts, and academicians. "Industry Week's 100 Best-Managed companies demonstrate superior, consistent financial.performance,' says John Brandt, editor-in-chief of IW. "We also honor these companies forinvesting heavily in such areas as research and development.new.markets, employees, and society. -more- SENT BY DEPT. COMMERCE ;11- 8-99 ; 5:41 : OBL- 94562505; 8/16 Harley-Davidson Named IW 100 Best-Managed Companies - add one Industry Week's 100 Best-Managed Companies will be recognized at the 100 Best- Managed Companies Awards Celebration and Executive Summit in Arizona early next year. Harley-Davidson Motor Company produces heavyweight motorcycles and offers a complete line of motorcycle parts, accessories, apparel and general merchandise. Buell Motorcycle Company produces sport and sport-touring motorcycles. Eaglemark Financial Services, Inc. provides wholesale and retail financing, insurance and credit card programs to Harley-Davidson dealers and customers and similar programs for other leisure product manufacturers. ### Withdrawal/Redaction Marker Clinton Library DOCUMENT NO. SUBJECT/TITLE DATE RESTRICTION AND TYPE 001. fax Cover sheet. Home Phone and Page Numbers. [partial] (1 page) 11/09/1999 P6/b(6) COLLECTION: Clinton Presidential Records Speechwriting Jeff Shesol OA/Box Number: 21462 FOLDER TITLE: Harley - York, PA 11/10/99 Harley - Drafts 2006-0467-F vz238 RESTRICTION CODES Presidential Records Aet - [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 PRA| b(7) Rclease 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. 11/09/99. 19:26 FAX 202 4828289 SPEEHWRITERS US COMMERCE 001 U.S. Department of Commerce Office of Speechwriting 14th St. & Constitution Ave. N.W., Room 5523 Washington, DC 20230 Phone: (202) 482-8287 Fax: (202) 482-8289 Jeff Schessel TO: COMPANY: FROM: Ilene Zeldin PAGES (incl. cover): COMMENTS: My Some phone is P6/(b)(6) P6/(b)(6) My pager is [001] P6/(b)(6) Pin P6/(b)(6) 11/09/99 19:26 FAX 202 4828289 SPEEHWRITERS US COMMERCE 002 C DISARTMENT OF COMMITAR (AMITED) STATES of AMERICA MMERCE NEWS UNITED STATES DEPARTMENT OF COMMERCE Office of the Secretary Washington, DC 20230 www.doc.gov/opa REMARKS BY COMMERCE SECRETARY WILLIAM M. DALEY NATIONAL TRADE DAY YORK, PENNSYLVANIA November 10, 1999 Text as Prepared For Delivery Six months ago, President Clinton asked me to begin a national dialogue on trade. I wanted to get out of Washington, and be with normal people. I have met thousands of Americans in 15 cities. And what I heard was that even in an economy as great as ours -- thanks to this President -- not everyone agrees trade is good for the country. People have fears about trade. They know too well the layoffs, and not the payoffs. I wanted to take the President on one of my stops, because he needs to hear this, before we go into trade negotiations with other countries. Obviously, he is a busy man, but I picked some places I thought he might like. I. visited a furniture showroom in North Carolina, very appealing to new homeowners. I visited many schools, very appealing to an education President. I even went to Al Mac's dinner in Massachusetts that, Mr. President, had great burgers. Although it's better you did not go there, because we had protestors with bull horns, and it was a pretty noisy lunch. But, to convince the leader of the free world to join me, all I had to do was suggest we visit a Harley-Davidson plant. Absolutely, I never heard a yes answer from the White House so fast. By the way, I did not even have to promise him a ride on a Deuce! Jeff Bleustein mentioned my ride. The truth is, we were in a hurry that day. But as Commerce Secretary, obviously I felt obliged to promote exports. So, I put on a helmet, got on a Softail, and the driver took me a few blocks. Then he started to turn back, because we had a bus-load of CEOs waiting, and I motioned him -- forget them, go another five miles, they' 11 wait! 11/09/99 19:27 FAX 2021 4828289 SPEEHWRITERS US COMMERCE 003 2 The President felt leading up to the World Trade Organization talks in Seattle, we should have a national trade day. Today, there are 20 big companies and 200 smaller companies holding events like this across the country. Transportation Secretary Slater is in a hangar in Atlanta, meeting with 1,000 Delta and Bell South employees, along with the Governor, and Mayor, because Delta now flies to 28 countries. In Minneapolis, at Cargill, they are having a Coffee with the Chairman. Of course, today is an historic day for UPS -- one of your suppliers. Their chairman is on Wall Street ringing the bell, as their stock goes public today. So they will hold trade day later in the month. And every employee will be told it takes just 40 international packages a day, to create one UPS job -- likely a union job. And I want to show you what Farmland in Kansas City is doing. This is one of their pay stubs. Every pay stub they send to their 17,000 employees will now carry a trade message. Right under where it shows how many vacation days -- the part everybody reads -- it says: "In the past six years, Farmland's international sales grew from $200 million to $4.1 billion. Farmland wins with trade." Obviously, Farmland employees will now see the payoffs to trade, right in their paychecks. And I think as we have these kind of dialogues with American workers across the country, we can build a pro-trade consensus in our country. Let me end on this. In the last years of the 19th century, America moved from an agricultural to an industrial society. And our president at the time, President McKinley, saw all these new products and he told Americans: we must broaden our commercial relations with other nations and engage in trade agreements. In the last weeks of the 20th century -- America's century - - we have a President who wants to lead our country and the entire world into more trade in the 21st century. I just hope every American is with him, and understands what you know in York, Pennsylvania -- that trading globally, means prospering locally. Thank you very much. -30- 1 001 11/09/99 19:32 FAX 202 4828289 SPEEHWRITERS US COMMERCE U.S. Department of Commerce Office of Speechwriting 14th St. & Constitution Ave. N.W., Room 5523 Washington, DC 20230 Phone: (202) 482-8287 Fax: (202) 482-8289 TO: Jeff Schessel COMPANY: Ilene Zeldin FROM: PAGES (incl. cover): COMMENTS: F4I. I thought you might like to see this,too-- the CEO's remails from Harley -Davidson. 11/09/99 19:33 FAX 202 4828289 SPEEHWRITERS US COMMERCE 002 NOV 00 99 13.41 FR n-v CACLO To: Eileen Zeldin Eric Scheverin President Clinton's Visit to Harley-Davidson J. Bleustein's Remarks 7:30 PM 11/8/99 Thank you. On behalf of all of us in the Harley-Davidson family, it is my privilege and a great honor to welcome President Clinton and Secretary Daley. Let's show them how much we appreciate their visit. (APPLAUSE) I would also like to welcome the many guests that are here with us today representing local, county, state, and national elected officials. (More? Board? Union?) In particular, I would like to recognize , , and We can be very proud that President Clinton and Secretary Daley have identified Harley-Davidson as a leading example of a company with a strong partnering relationship between management and labor --- and a company that understands the importance of trade. 11/09/99 19:33 FAX 202 4828289 SPEEHWRITERS US COMMERCE 003 NUV 00 yy 15.41 FR M-V EXCLS 410 FL International trade is absolutely essential to Harley-Davidson's continued growth --- and it is fundamental to America's worldwide competitiveness. As a Company, we depend heavily on the relationship we have forged with the Department of Commerce and the U.S. Trade Representative's Office. We are working together to level the playing field overseas - - - by reducing import duties and eliminating other trade barriers to the sale and use of our motorcycles. For example, in Japan there used to be unusually difficult license requirements for riding motorcycles ... and even laws forbidding two-up riding on any highway. Both of these regulations were significant barriers to our growth in this market. But with the assistance of Secretary Daley's staff at the Department of Commerce, we were successful two years ago in getting much more reasonable licensing requirements enacted. And we hope that later this month the prohibition against two-up riding will also be overturned! 2 11/09/99 19:33 FAX 202 4828289 SPEEHWRITERS US COMMERCE 004 NOV 08 '99 19:42 FR H-U EXELS 410 FL 414 With this track record of cooperation and success, I was delighted to receive the invitation from Secretary Daley to participate in his educational tour on trade. In April, I and a number of other Milwaukee business and labor leaders met in a public forum with the Secretary to discuss the dynamics of trade and its importance to our country. Then in September, the Secretary visited Harley-Davidson in Kansas City. He toured factory with Karl Eberle and union leaders and talked informally to all of our employees about the value of international trade. He really captured our hearts by taking a ride on authentic American iron. The dialogue in both visits revolved around the fact that international trade is a prerequisite for any company that wants to be competitive in the world marketplace and thus assure jobs at home. And now I am certain you are all anxious to hear more on this topic from our special guests. Please welcome Secretary of Commerce, Mr. William Daley ... 3 D Illene Widin wed. - Harley Davidson caren 12:30 482-5035 - commerce cAndy Carolin wn on metro trade 66278 1998#s - positivastory on you, PA www.traderoors. com org 001 SPEEHWRITERS US COMMERCE 11/08/99 10:35 FAX 202 4828289 U.S. Department of Commerce Office of Speechwriting 14th St. & Constitution Ave. N.W., Room 5523 Washington, DC 20230 Phone: (202) 482-8287 Fax: (202) 482-8289 TO: Jeff Shesol COMPANY: Ilene Zeldin FROM: PAGES (incl. cover): 20 COMMENTS: Here are the pages on you'll need for the export #5 on Seattle 2 York for the speech on Wednesday. 11/08/99 10:35 FAX 202 4828289 SPEEHWRITERS US COMMERCE 002 EXPORT SALES OF U.S. METROPOLITAN AREAS, 1993-98 1998 Highlights Export sales by 253 selected U.S. Metropolitan Statistical Areas (MSAs) totaled $536.4 billion in 1998, down 0.9 percent from the $541.0 billion recorded by these same metro areas in 1997. This is the first time since MSA-level export measurement was instituted that the 253-MSA group has collectively experienced an export decline. The 1998 drop in MSA exports reflected an overall decline in U.S. merchandise exports, which was largely due to Asian economic difficulties. Total 1998 U.S. exports of goods were $680.5 billion, which was $7.1 billion less than the value of merchandise exported the previous year. Notwithstanding last year's reversal, exports continue to benefit a large number of metro areas throughout the United States ATotalof trolare as --ove Operce of the MSAs for which data are available--realized export 198 despite challenging world market conditions. Of the 145 MSAs which experienced export declines, 77 recorded export decreases under 10 percent. A total of 93 metro areas posted 1998 export sales of $1 billion or more--only one less than the 94 MSAs that were members of this "billion-dollar club" in 1997. These 93 metro areas were responsible for over 71 percent of total U.S. merchandise exports in 1998. Another 36 metropolitan areas recorded 1998 export sales ranging from just over $500 million to just under $1 billion. An additional 97 MSAs generated exports between $100 million and $500 million. The Seattle-Belleview-Everet, Washington metro area was the nation's top exporting metropolis in 1998, selling a total of $34.0 billion in merchandise to foreign markets. This marks the first time that any metropolitan area has exceeded $30 billion in export sales in any one year. - The Seattle area was followed by Detroit ($27.0 billion), New York City ($26.6 billion), and 1997's top exporter, San Jose ($26.1 billion). - Rounding out the top ten metro exporters were Los Angeles-Long Beach ($25.6 billion), Chicago ($22.9 billion), Houston ($19.1 billion), Miami ($12.9 billion), Minneapolis-St. Paul ($11.7 billion), and Boston ($9.6 billion). Four major metro areas Seattle, Atlanta, Detroit, and Cincinnati- expanded 1998 exports [-billion-or-more. For the second straight year, Seattle had by far the largest dollar increase, posting a gain of $7 billion. Atlanta recorded the next-largest increase--$1.3 billion. Four other MSAs posted 1998 export increases between $500 million and $1 billion, while 26 more metro areas registered export increases in the $100-$499 million range. 11/08/99 10:35 FAX 202 4828289 SPEEHWRITERS US COMMERCE 003 As in previous years, the metro areas that posted the largest percentage increases in export sales during 1998 were almost exclusively small and mid-sized cities scattered throughout the United States. - Two MSAs--Kenosha, WI and Terre Haute, IN--more than doubled their sales abroad in 1998. - Eight other MSAs increased their export sales by more than 50 percent, including Eugene- Springfield, OR (up 96 percent); Newburgh, NY-PA (up 89 percent); Columbia, MO (up 76 percent); Texarkana, TX-AR (up 76 percent); Lafayette, IN (up 67 percent); Lawrence, KS (up 55 percent); Biloxi-Gulfport-Pascagoula, MS (up 53 percent); and Roanoke, VA (up 53 percent). 1993-98 Trends From 1993 to 1998, exports from the 253 MSAs for which data are available rose by $166.5 billion. This represents a gain of 45 percent--marginally below the 46.4 percent increase in total U.S. merchandise exports over this period. Over the 1993-98 period, the number of MSAs in the exclusive exporting "billion-dollar club" rose from 76 to 93, a gain of nearly 25 percent. Of the 253 metro areas for which 1993-98 export data are available, 230--some 91 percent-- recorded larger export sales in 1998 than in 1993. Forty-four MSAs registered export increases of $1 billion or more over the 1993-98 period. - Two metro areas--Detroit and Seattle-Bellevue-Everett-each expanded their export sales by $10.2 billion from 1993 to 1998. - Other MSAs with large gains in export sales were San Jose (up $9.9 billion), Chicago (up $8.5 billion), Houston (up $ 6.8 billion), Los Angeles-Long Beach (up $5.5 billion), Miami, (up $4.7 billion), San Diego (up $4.2 billion), Atlanta (up $4.0 billion), and Dallas (up $3.6 billion). Twenty-six metro areas registered 1993-98 export increases ranging from just over $500 million to just under $1 billion. Top MSAs in this group included Albany-Schenectady-Troy (NY), St. Louis (MO-IL), Norfolk-Virginia Beach-Newport News (VA-NC), Denver (CO), Salt Lake City-Ogden (UT), Akron (OH), Riverside-San Bernardino (CA), Tucson (AZ), Fort Lauderdale (FL), and Nashville (TN). Eighty-two MSAs boosted export sales between $100 million and $500 million over the 1993-98 period. The leading metro areas in this group were Terre Haute (IN), Huntsville (AL), Flint (MI), Omaha (NE-IA), Santa Rosa (CA), Kokomo (IN), Colorado Springs (CO), Kenosha (WI), Jersey City (NJ), South Bend (IN), Rockford (IL), and Portland (ME). 11/08/99 10:36 FAX 202 4828289 SPEEHWRITERS US COMMERCE 004 Over the 1993-98 period, a total of 54 metro areas increased their merchandise sales abroad by 100 percent or more. - Wheeling (WV-OH) recorded the fastest export growth of the 253 MSAs, posting a 1993-98 gain of 1,253 percent. Exports from the metro area hit nearly $100 million in 1998, up sharply from the modest $7.4 million registered in 1993. - Wheeling was followed by Terre Haute, IN (731 percent increase from 1993 to 1998), Albuquerque, NM (up 560 percent), Champaign-Urbana, IL (up 349 percent), Kenosha, WI (up 345 percent), Lafayette, IN (up 285 percent), St. Joseph, MO (up 275 percent); Sherman- Denison, TX (up 237 percent), South Bend, IN (up 227 percent), and Wilmington, NC (up 226 percent). Another 79 MSAs recorded increases in export sales of 50 to 99 percent over the 1993-98 period. Of all 253 MSAs for which export data are available, only 23 metro areas had lower export sales in 1998 than they registered in 1993. EXPORT SALES OF U.S. METROPOLITAN AREAS, 1993-98 (Thousand $) 1993-98 Changes 1997-98 Changes Metropolitan Statistical Area 1993 1994 1995 1996 1997 1998 $ % $ % I Akron, OH 1,434,942 1,606,289 1,931,665 2,260,275 2,353,272 2,266,101 831,159 57.9 -87,171 -3.7 2 Albany--Schenectady--Troy, NY 676,206 831,366 1,061,194 1,101,029 1,666,230 1,613,036 936,831 138.5 -53,194 -3.2 11/08/99 10:36 FAX 202 4828289 3 Albany, GA 26,396 31,810 31,497 52,462 57,321 36,918 10,522 39.9 -20403 -35.6 4 Albuquerque, NM 256,689 335,481 270,083 740,349 1,564,622 1,694,402 1,437,713 560.1 129,780 8.3 5 Alexandria, LA 15,789 16,933 18,692 21,631 17,935 23,482 7,693 48.7 5,547 30.9 6 Allentown-Bethlehem-Easton, PA 1,273,865 1,371,116 1,492,805 1,477,243 1,808,893 1,535,030 261,165 20.5 -273,864 -15.1 7 Altoona, PA 42,604 46,388 74,185 80,175 85,888 80,555 37,951 89.1 -5,333 -6.2 8 Anchorage, AK 128,779 198,192 150,417 108,977 213,149 145,987 17,209 13.4 -67,161 -31.5 9 Ann Arbor, MI 2,218,083 2,075,769 1,157,910 1,311,134 1,520,885 1,594,936 -623,147 -28.1 74,051 4.9 10 Appleton--Oshkosh--Neenah, WI 529,528 507,733 593,726 608,521 647,857 658,018 128,490 24.3 10,161 1.6 11 Asheville, NC 232,281 228,597 185,185 236,684 294,162 232,955 674 0.3 -61,207 -20.8 12 Atlanta, GA 3,870,589 4,739,124 5,811,439 5,891,451 6,604,616 7,904,635 4,034,046 104.2 1,300,019 19.7 13 Augusta--Aiken, GA-SC 227,432 326,302 405,183 443,888 433,793 519,588 292,156 128.5 85,795 19.8 14 Austin--San Marcos, TX 1,721,514 2,128,774 2,929,208 2,743,135 3,354,809 3,802,387 2,080,874 120.9 447,578 13.3 SPEEHWRITERS US COMMERCE 15 Bakersfield, CA 480,657 780,377 730,542 721,273 835,593 695,336 214,679 44.7 -140,257 -16.8 16 Baltimore, MD 1,783,407 1,868,968 2,209,168 2,110,417 2,171,305 2,330,989 547,582 30.7 159,684 7.4 17 Baton Rouge, LA 564,618 457,982 569,620 552,852 577,138 509,935 -54,683 -9.7 -67,203 -11.6 18 Beaumont-Port Arthur, TX 87,690 97,015 118,907 115,378 133,422 127,201 39,511 45.1 -6,221 -4.7 19 Bellingham, WA 206,777 210,652 253,540 275,374 316,687 256,449 49,672 24.0 -60,238 -19.0 20 Benton Harbor, MI 338,674 368,814 369,319 317,239 260,607 275,890 -62,784 -18.5 15,283 5.9 21 Bergen--Passaic, NJ 3,924,948 4,387,000 4,784,006 4,499,879 4,789,763 4,228,644 303,696 7.7 -561,119 -11.7 22 Biloxi-Gulfport-Pascagoula, MS 108,136 281,603 281,040 119,916 76,868 117,892 9,756 9.0 41,024 53.4 23 Binghamton, NY 316,229 474,878 558,094 443,250 513,287 440,177 123,948 39.2 -73,110 -14.2 24 Birmingham, AL 533,867 453,848 550,543 625,776 941,394 533,796 -72 -0.0 -407,599 -43.3 005 25 Bloomington, IN 113,646 1-15,745 127,555 198,832 166,756 75,319 -38,326 -33.7 -91,437 -54.8 EXPORT SALES OF U.S. METROPOLITAN AREAS, 1993-98 (Thousand $) 1993-98 Changes 1997-98 Changes Metropolitan Statistical Area 1993 1994 1995 1996 1997 1998 $ % $ % 26 Boise City, ID 1,022,745 1,289,820 1,634,972 1,338,529 1,407,314 1,114,357 91,611 9.0 -292,957 -20.8 27 Boston, MA--NH 6,472,471 7,095,349 7,902,660 8,715,804 9,570,608 9,556,326 3,083,855 47.6 -14,281 -0.1 28 Bremerton, WA 45,022 54,582 109,800 79,868 102,371 76,190 31,168 69.2 -26,181 -25.6 11/08/99 10:36 FAX 202 4828289 29 Bridgeport, CT 1,125,870 918,847 952,929 788,587 981,387 895,036 -230,834 -20.5 -86,351 -8.8 30 Brockton, MA 107,000 113,105 143,965 159,707 268,693 342,263 235,263 219.9 73.570 27.4 31 Brownsville-Harlingen--San Benito, TX 1,904,366 2,113,362 2,245,917 2,612,577 2,697,106 2,421,261 516,895 27.1 -275,845 -10.2 32 Buffalo--Niagara Falls, NY 1,135,153 1,569,651 2,295,800 2,262,228 2,667,262 2,222,669 1,087,516 95.8 -444,593 -16.7 33 Canton-Massillon, OH 250,177 315,936 377,170 405,985 421,568 359,544 109,368 43.7 -62,023 -14.7 34 Cedar Rapids, LA 342,382 363,795 402,216 391,100 429,826 537,649 195,267 57.0 107,823 25.1 35 Champaign--Urbana, IL 87,762 89,341 103,421 214,409 423,556 393,951 306,189 348.9 -29,605 -7.0 36 Charleston--North Charleston, SC 597,253 388,467 501,582 595,061 827,611 837,895 240,642 40.3 10,284 1.2 37 Charleston, WV 178,939 277,596 394,362 412,150 393,392 396,693 217,754 121.7 3,300 0.8 38 Charlotte--Gastonia--Rock Hill, NC--SC 1,563,725 1,782,827 2,087,970 2,291,296 2,588,757 2,628,936 1,065,211 68.1 40,179 1.6 39 Charlottesville, VA 113,836 123,035 157,362 140,238 195,369 191,363 77,527 68.1 -4,006 -2.1 SPEEHWRITERS US COMMERCE 40 Chattanooga, TN-GA 218,310 237,267 301,012 273,466 331,361 337,090 118,781 54.4 5,730 1.7 41 Chicago, IL 14,446,576 17,333,603 21,083,418 22,030,068 23,209,949 22,929,360 8,482,784 58.7 -280,589 -1.2 42 Chico--Paradise, CA 71,041 77,167 70,137 78,133 58,136 59,652 -11,388 -16.0 1,517 2.6 43 Cincinnati, OH--KY--IN 3,898,151 4,056,506 4,256,653 4,784,140 5,674,148 6,682,463 2,784,312 71.4 1,008,315 17.8 44 Cleveland-Lorain--Elyria, OH 3,582,759 4,093,323 4,706,991 5,075,165 5,510,954 5,347,009 1,764,250 49.2 -163,945 -3.0 45 Colorado Springs, CO 664,289 900,712 954,692 856,994 1,006,014 1,103,172 438,883 66.1 97,157 9.7 46 Columbia, MO 42,935 50,174 51,134 57,875 74,905 131,476 88,541 206.2 56,570 75.5 47 Columbia, SC 212,915 300,390 343,311 310,848 328,546 346,618 133,702 62.8 18,072 5.5 48 Columbus, GA--AL 183,841 172,772 245,350 253,155 282,322 276,459 92,617 50.4 -5,863 -2.1 49 Columbus, OH 1,167,013 1,295,468 1,358,161 1,497,160 1,660,657 1,753,185 586,173 50.2 92,528 5.6 900 50 Corpus Christi, TX 186,763 153,571 162,390 241,770 387,234 308,673 121,910 65.3 -78,561 -20.3 EXPORT SALES OF U.S. METROPOLITAN AREAS, 1993-98 (Thousand $) 1993-98 Changes 1997-98 Changes Metropolitan Statistical Area 1993 1994 1995 1996 1997 1998 $ % $ % 51 Cumberland, MD--WV 54,899 64,261 53,813 45,917 48,329 42,576 -12,323 -22.4 -5,753 -11.9 52 Dallas, TX 4,817,639 5,679,711 6,870,414 7,096,879 8,645,861 8,449,592 3,631,952 75.4 -196,269 -2.3 11/08/99 10:37 FAX 202 4828289 53 Danbury, CT 316,699 392,956 421,570 531,920 482,881 425,912 109,213 34.5 -56,969 -11.8 54 Danville, VA 172,994 202,727 155,744 89,127 104,366 74,946 -98,048 -56.7 -29,420 -28.2 55 Davenport-Moline-Rock Island, IA--IL 1,102,558 1,098,869 1,291,031 1,576,123 1,933,861 1,745,777 643,219 58.3 -188,084 -9.7 56 Dayton-Springfield, OH 2,479,867 2,671,309 2,404,844 2,201,505 2,271,464 2,253,016 -226,850 -9.1 -18,447 -0.8 57 Daytona Beach, FL 140,472 110,299 85,855 111,657 137,453 142,793 2,321 1.7 5,340 3.9 58 Decatur, AL 42,335 54,468 65,584 91,563 109,502 124,547 82,212 194.2 15,044 13.7 59 Denver, CO 930,960 1,089,812 1,385,282 1,502,865 1,738,062 1,806,282 875,322 94.0 68,220 3.9 60 Des Moines, LA 337,183 348,931 378,549 426,017 450,544 476,103 138,920 41.2 25,560 5.7 61 Detroit, MI 16,780,889 27,469,655 27,314,657 27,531,231 25,967,413 27,004,696 10,223,807 60.9 1,037,282 4.0 62 Dubuque, LA 93,056 177,562 180,740 183,518 181,238 162,636 69,579 74.8 -18,602 -10.3 63 Eau Claire, WI 289,716 465,708 399,923 320,596 507,339 583,376 293,661 101.4 76,037 15.0 64 El Paso, TX 2,967,027 3,561,263 4,120,777 5,212,689 5,833,929 6,544,562 3,577,535 120.6 710,633 12.2 SPEEHWRITERS US COMMERCE 65 Elkhart--Goshen, IN 419,879 460,350 501,534 367,465 414,687 411,381 -8,499 -2.0 -3,306 -0.8 66 Elmira, NY 70,199 116,822 139,478 196,874 241,789 205,477 135,278 192.7 -36,312 -15.0 67 Erie, PA 311,584 285,448 490,770 321,857 598,192 621,182 309,598 99.4 22,990 3.8 68 Eugene--Springfield, OR 157,946 173,094 190,328 168,902 190,499 373,861 215,915 136.7 183,362 96.3 69 Evansville-Henderson, IN--KY 448,534 487,403 525,072 545,088 588,001 595,378 146,844 32.7 7,377 1.3 70 Fargo--Moorhead, ND--MN 111,848 137,259 155,010 181,892 208,530 158,071 46,223 41.3 -50,459 -24.2 71 Fayetteville-Springdale-Rogers. AR 250,352 433,823 669,265 801,203 732,763 597,658 347,306 138.7 -135,106 -18.4 72 Fayetteville, NC 54,327 57,909 66,594 65,411 105,346 96,431 42,104 77.5 -8,915 -8.5 73 Flint, MI 958,924 1,032,050 1,451,712 1,318,809 1,475,349 1,417,794 458,871 47.9 -57,555 -3.9 74 Florence, AL 29,806 25,748 29,537 25,245 35,872 36,980 7,174 24.1 1,107 3.1 007 75 Florence, SC 66,283 117,220 249,016 121,576 75,768 71,407 5,124 7.7 -4,360 -5.8 EXPORT SALES OF U.S. METROPOLITAN AREAS, 1993-98 (Thousand $) 1993-98 Changes 1997-98 Changes Metropolitan Statistical Area 1993 1994 1995 1996 1997 1998 $ % $ % 76 Fort Collins--Loveland, CO 284,314 354,462 373,863 468,124 433,279 340,741 56,427 19.8 -92,539 -21.4 77 Fort Lauderdale, FL 1,321,448 1,506,662 1,774,654 1,864,518 2,143,001 2,086,614 765,166 57.9 -56,388 -2.6 78 Fort Pierce-Port St. Lucie, FL 73,494 92,293 114,172 107,601 118,527 108,740 35,246 48.0 -9,787 -8.3 11/08/99 10:37 FAX 202_4828289 79 Fort Wayne, IN 640,584 770,882 1,029,423 991,375 1,078,161 1,192,796 552,212 86.2 114,635 10.6 80 Fort Worth-Arlington, TX 1,600,206 2,052,001 1,915,014 2,372,703 3,045,861 3,455,904 1,855,698 116.0 410,043 13.5 81 Fresno, CA 673,105 763,407 714,388 691,808 739,752 822,654 149,549 22.2 82,902 11.2 82 Gainesville, FL 62,603 65,747 91,619 88,265 79,609 70,187 7,584 12.1 -9,422 -11.8 83 Gary, IN 225,347 267,481 310,599 303,193 336,851 356,041 130,694 58.0 19,190 5.7 84 Grand Rapids--Muskegon--Holland, MI 1,704,960 1,993,494 2,304,077 2,656,497 2,933,117 3,063,523 1,358,564 79.7 130,406 4.4 85 Greeley, CO 276,023 501,823 582,938 558,790 693,942 631,755 355,732 128.9 -62,187 -9.0 86 Green Bay, WI 134,097 187,290 212,672 188,950 281,895 224,618 90,521 67.5 -57,278 -20.3 87 Greensboro-Win.-Salem-High Point, NC 2,453,096 2,773,310 3,356,262 3,495,639 4,050,787 4,037,151 1,584,054 64.6 -13,636 -0.3 88 Greenville-Spartanburg--Anderson, SC 1,462,112 1,745,020 2,305,311 2,720,417 3,076,918 3,124,156 1,662,044 113.7 47,238 1.5 89 Hamilton--Middletown, OH 49,285 66,255 78,348 90,125 98,240 83,152 33,866 68.7 -15,088 -15.4 SPEEHWRITERS US COMMERCE 90 Harrisburg-Lebanon--Carlisle, PA 339,161 535,012 600,973 775,520 964,423 952,919 613,758 181.0 -11,504 -1.2 91 Hartford, CT 1,926,097 1,967,053 2,167,603 2,415,985 3,219,819 3,758,126 1,832,030 95.1 538,308 16.7 92 Hickory--Morganton, NC 335,244 397,915 476,069 464,329 501,193 529,898 194,654 58.1 28,705 5.7 93 Honolulu, HI 187,788 215,516 228,239 265,744 269,476 172,220 -15,568 -8.3 -97,257 -36.1 94 Houma, LA 58,294 53,768 60,043 57,998 86,367 128,555 70,261 120.5 42,188 48.8 95 Houston, TX 12,284,566 13,388,170 16,247,880 16,541,463 18,595,875 19,118,959 6,834,393 55.6 523,085 2.8 96 Huntington--Ashland, WV-KY--OH 136,550 162,404 237,186 193,938 218,721 138,892 2,342 1.7 -79,829 -36.5 97 Huntsville, AL 573,554 672,092 828,966 899,068 1,071,849 1,055,333 481,779 84.0 -16,515 -1.5 98 Indianapolis, IN 2,626,626 3,003,834 3,555,925 4,012,775 4,301,806 4,771,265 2,144,640 81.6 469,460 10.9 99 Jacksonville, FL 404,853 500,396 604,066 676,985 721,337 777,167 372,314 92.0 55,830 7.7 008 100 Jackson, MI 95,465 96,270 98,478 128,123 135,023 159,093 63,627 66.6 24,069 17.8 EXPORT SALES OF U.S. METROPOLITAN AREAS, 1993-98 (Thousand $) 1993-98 Changes 1997-98 Changes Metropolitan Statistical Area 1993 1994 1995 1996 1997 1998 $ % $ % 101 Jackson, MS 141,226 154,261 203,013 231,401 318,106 219,597 78,371 55.5 -98,510 -31.0 102 Jackson, TN 108,016 132,547 175,311 155,210 167,765 241,754 133.738 123.8 73,989 44.1 103 Jamestown, NY -156,924 209,364 256,550 11/08/99 10:38 FAX 202 4828289 241,231 283,505 285,866 128,942 82.2 2,361 0.8 104 Janesville-Beloit, WI 76,567 76,346 80,212 107,079 128,468 125,211 48,644 63.5 -3,257 -2.5 105 Jersey City, NJ 986,218 1,351,240 1,159,861 1,140,757 1,319,371 1,402,771 416,553 42.2 83,400 6.3 106 Johnson City-Kingsport-Bristol, TN-VA 1,356,660 1,580,778 1,677,497 1,566,532 1,698,562 1,587,388 230,728 17.0 -111,174 -6.5 107 Joplin, MO 52,132 44,601 50,324 71,445 73,538 68,214 16,081 30.8 -5,324 -7.2 108 Kalamazoo-Battle Creek, MI 650,331 868,951 897,345 836,062 919,453 929,692 279,362 43.0 10,239 1.1 109 Kankakee, IL 79,077 85,979 137,808 113,717 118,704 108,316 29,238 37.0 -10,389 -8.8 110 Kansas City, MO--KS 2,225,901 2,578,560 3,350,170 3,985,073 3,817,637 3,631,718 1,405,818 63.2 -185,918 -4.9 111 Kenosha, WI 126,851 117,674 133,918 154,262 232,092 564,780 437,928 345.2 332,687 143.3 112 Knoxville, TN 580,408 689,179 633,188 764,137 884,213 858,349 277,941 47.9 -25,865 -2.9 113 Kokomo, IN 1,727,480 1,858,413 1,648,872 2,056,420 2,213,079 2,180,689 453,209 26.2 -32,390 -1.5 114 La Crosse, WI--MN 90,558 93,073 276,217 273,185 297,792 229,955 139,397 153.9 -67,837 -22.8 SPEEHWRITERS US COMMERCE 115 Lafayette, IN 75,176 74,908 116,206 133,218 172,701 289,098 213,922 284.6 116,397 67.4 116 Lafayette, LA 93,649 148,704 192,720 164,843 202,220 190,354 96,705 103.3 -11,866 -5.9 117 Lake Charles, LA 56,088 55,911 64,560 48,199 77,907 74,267 18,178 32.4 -3,640 -4.7 118 Lakeland-Winter Haven, FL 187,020 199,173 237,674 241,525 243,586 233,291 46,271 24.7 -10,296 -4.2 119 Lancaster, PA 406,093 469,339 581,528 626,225 620,250 591,005 184,911 45.5 -29,246 -4.7 120 Lansing--East Lansing, MI 185,665 208,627 224,039 202,209 217,475 185,976 311 0.2 -31,499 -14.5 121 Laredo, TX 4,061,824 4,157,378 2,897,822 3,440,673 3,959,112 3,633,572 -428,253 -10.5 -325,540 -8.2 122 Lawrence, KS 5,239 6,244 4,081 5,738 6,474 10,002 4,763 90.9 3,528 54.5 123 Lawrence, MA--NH 822,630 806,417 841,678 1,033,637 1,810,176 1,544,924 722,294 87.8 -265,251 -14.7 124 Lexington, KY 624,190 1,078,566 1,235,009 1,499,919 1,886,843 1,838,057 1,213,866 194.5 -48,787 -2.6 600 125 Lima, OH 294,120 166,192 226,000 207,330 241,975 264,114 -30,007 -10.2 22,139 9.1 EXPORT SALES OF U.S. METROPOLITAN AREAS, 1993-98 (Thousand $) 1993-98 Changes 1997-98 Changes Metropolitan Statistical Area 1993 1994 1995 1996 1997 1998 $ % $ % 126 Lincoln, NE 188,537 207,173 208,814 225,253 264,561 261,723 73,186 38.8 -2,838 -1.1 127 Little Rock--North Little Rock, AR 200,140 218,994 193,609 210,392 349,367 262,343 62,202 31.1 -87,024 -24.9 11/08/99 10:38 FAX 202 4828289 128 Longview-Marshall, TX 84,954 97,254 121,157 144,152 183,591 226,503 141,550 166.6 42,912 23.4 129 Los Angeles--Long Beach, CA 20,013,560 22,224,815 24,730,952 24,437,945 25,816,445 25,554,700 5,541,140 27.7 -261,745 -1.0 130 Louisville, KY-IN 1,673,848 1,798,847 2,199,762 2,327,058 2,449,114 2,290,365 616,517 36.8 -158,748 -6.5 131 Lowell, MA-NH 867,467 890,091 1,079,890 1,119,945 1,396,475 1,449,779 582,313 67.1 53,304 3.8 132 Lubbock, TX 98,634 165,123 258,747 189,012 262,179 225,110 126,476 128.2 -37,069 -14.1 133 Lynchburg, VA 143,246 152,545 192,137 258,838 439,179 442,788 299,542 209.1 3,609 0.8 134 Macon, GA 160,523 173,276 197,552 220,086 241,348 253,268 92,744 57.8 11,920 4.9 135 Madison, WI 357,688 417,083 497,462 522,408 602,973 587,782 230,094 64.3 -15,190 -2.5 136 Manchester, NH 107,047 115,303 146,299 198,254 237,847 219,700 112,653 105.2 -18,147 -7.6 137 Mansfield, OH 367,636 349,888 394,924 412,978 443,963 430,683 63,048 17.1 -13,280 -3.0 138 McAllen-Edinburg--Mission, TX 1,510,195 1,826,431 1,617,131 1,579,743 1,872,870 1,791,764 281,570 18.6 -81,105 -4.3 139 Melbourne-Titusville--Palm Bay, FL 315,249 315,942 310,089 634,964 408,798 538,531 223,281 70.8 129,733 31.7 SPEEHWRITERS US COMMERCE 140 Memphis, TN--AR-MS 2,055,082 2,729,489 4,163,838 3,786,080 3,636,922 3,615,478 1,560,396 75.9 -21,444 -0.6 141 Miami, FL 8,264,304 9,266,746 10,200,815 10,681,236 12,692,289 12,943,363 4,679,059 56.6 251,075 2.0 142 Middlesex-Somerset--Hunterdon, NJ 2,840,561 3,035,891 3,448,093 3,628,085 4,385,353 4,879,701 2,039,140 71.8 494,348 11.3 143 Milwaukce-Waukesha, WI 2,337,305 2,913,545 3,506,904 3,717,211 3,837,641 3,570,258 1,232,954 52.8 -267,382 -7.0 144 Minneapolis--St. Paul, MN--WI 9,003,818 8,863,531 11,071,822 12,383,979 12,006,701 11,652,410 2,648,592 29.4 -354,291 -3.0 145 Mobile, AL 356,695 395,276 415,827 459,850 498,716 426,057 69,362 19.4 -72,659 -14.6 146 Modesto, CA 201,050 236,678 279,172 359,601 387,537 378,369 177,319 88.2 -9,167 -2.4 147 Monmouth--Ocean, NJ 373,366 410,213 471,773 478,196 504,839 508,841 135,476 36.3 4,002 0.8 148 Monroe, LA 77,149 107,119 167,801 133,964 101,932 69,262 -7,886 -10.2 -32,669 -32.1 149 Montgomery, AL 157,829 231,009 244,101 192,870 185,518 135,288 -22,540 -14.3 -50,230 -27.1 OTO 150 Muncie, IN 64,330 107,404 158,266 137,554 157,616 105,313 40,984 63.7 -52,302 -33.2 EXPORT SALES OF U.S. METROPOLITAN AREAS, 1993-98 (Thousand $) 1993-98 Changes 1997-98 Changes Metropolitan Statistical Area 1993 1994 1995 1996 1997 1998 $ % $ % 151 Naples, FL 55,574 55,985 75,004 75,954 35,031 20,548 -35,026 -63.0 -14,483 -41.3 152 Nashua, NH 290,191 235,398 282,232 291,331 339,817 364,527 74,336 25.6 24,710 7.3 153 Nashville, TN 1,104,101 1,310,492 1,412,348 1,445,492 1,767,089 1,868,718 764,617 69.3 101,630 5.8 11/08/99 10:38 FAX 202 4828289 154 Nassau-Suffolk, NY 2,803,216 2,866,271 3,558,627 3,680,169 4,208,483 4,438,638 1,635,422 58.3 230,155 5.5 155 New Bedford, MA 141,561 154,503 186,770 165,767 153,427 161,901 20,340 14.4 8,474 5.5 156 New Haven--Meriden, CT 1,035,551 1,075,478 1,106,349 1,012,437 1,179,752 1,200,362 164,812 15.9 20,610 1.7 157 New London--Norwich, CT--RI 136,538 141,454 178,198 157,457 192,130 191,411 54,872 40.2 -719 -0.4 158 New Orleans, LA 2,034,209 2,326,231 3,037,819 3,316,761 2,770,835 2,776,175 741,965 36.5 5,339 0.2 159 New York, NY 28,192,822 23,543,749 27,131,084 27,970,507 29,082,571 26,578,439 -1,614,383 -5.7 -2,504,133 -8.6 160 Newark, NJ 4,287,435 5,205,487 5,640,024 5,044,167 5,201,844 4,866,092 578,657 13.5 -335,752 -6.5 161 Newburgh, NY-PA 382,276 152,835 148,874 153,254 222,140 419,346 37,070 9.7 197,206 88.8 162 Norfolk-Va. Beach-Newport News, VA-NC 677,160 807,674 1,005,516 1,256,850 1,396,907 1,587,335 910,175 134.4 190,428 13.6 163 Oakland, CA 4,181,478 5,113,244 6,372,463 7,309,195 6,920,395 6,263,891 2,082,413 49.8 -656,504 -9.5 164 Odessa-Midland, TX 50,028 68,283 118,157 92,080 99,731 96,487 46,459 92.9 -3,244 -3.3 SPEEHWRITERS US COMMERCE 165 Oklahoma City, OK 478,853 488,563 485,803 483,903 519,966 552,487 73,634 15.4 32,522 6.3 166 Omaha, NE--IA 299,778 393,250 425,917 608,290 691,431 753,747 453,969 151.4 62,316 9.0 167 Orange County, CA 5,653,368 6,715,982 8,041,081 8,309,267 8,798,326 8,198,869 2,545,501 45.0 -599,457 -6.8 168 Orlando, FL 930,364 848,512 968,816 1,218,957 1,662,795 1,477,338 546,975 58.8 -185,457 -11.2 169 Panama City, FL 90,908 121,159 216,486 174,787 221,084 246,749 155,841 171.4 25,664 11.6 170 Parkersburg-Marietta, WV-OH 298,771 313,640 186,564 211,945 262,286 246,616 -52,155 -17.5 -15,670 -6.0 171 Pensacola, FL 38,763 34,048 32,207 36,836 59,842 47,881 9,118 23.5 -11,961 -20.0 172 Philadelphia, PA--NJ 5,869,148 6,545,836 7,896,893 7,727,940 8,027,797 8,397,192 2,528,044 43.1 369,395 4.6 173 Phoenix-Mesa, AZ 4,498,943 5,561,094 6,780,426 7,912,060 11,108,393 8,102,758 3,603,814 80.1 -3,005,635 -27.1 174 Pine Bluff, AR 125,339 152,459 153,662 152,837 139,233 129,708 4,369 3.5 -9,525 -6.8 TTO 175 Pittsburgh, PA 2,989,745 3,150,610 3,982,169 3,933,687 4,352,159 4,079,202 1,089,457 36.4 -272,958 -6.3 EXPORT SALES OF U.S. METROPOLITAN AREAS, 1993-98 (Thousand $) 1993-98 Changes 1997-98 Changes Metropolitan Statistical Area 1993 1994 1995 1996 1997 1998 $ % $ % 176 Pittsfield, MA 77,168 112,240 151,883 175,533 219,279 203,587 126,419 163.8 -15,693 -7.2 177 Portland--Vancouver, OR--WA 5,698,522 6,448,827 8,931,312 9,234,315 8,926,454 8,283,280 2,584,758 45.4 -643,174 -7.2 178 Portland, ME 355,191 319,516 373,121 339,152 617,447 755,580 400,389 112.7 138,133 22.4 11/08/99 10:39 FAX- 202 4828289 179 Portsmouth-Rochester, NH--ME 464,982 470,165 553.568 574,770 485,980 555,163 90,181 19.4 69,183 14.2 180 Providence-Fall River-Warwick, RI-MA 1,141,673 1,246,010 1,241,014 1,296,244 1,601,815 1,670,610 528,937 46.3 68,795 4.3 181 Provo-Orem, UT 170,393 200,188 201,586 301,871 360,463 320,369 149,976 88.0 -40,094 -11.1 182 Racine, WI 365,127 403,153 335,106 493,169 991,958 482,501 117,374 32.1 -509,458 -51.4 183 Raleigh--Durham-Chapel Hill, NC 1,620,884 1,758,673 2,093,206 2,609,828 2,713,071 2,665,615 1,044,731 64.5 -47,456 -1.7 184 Reading, PA 300,573 271,606 293,424 326,184 429,540 454,171 153,597 51.1 24,631 5.7 185 Redding, CA 32,253 28,626 40,979 53,002 39,286 31,816 -438 -1.4 -7,470 -19.0 186 Reno, NV 184,087 213,652 368,210 314,589 399,724 384,448 200,361 108.8 -15,276 -3.8 187 Richland--Kennewick-Pasco, WA 220,336 271,567 146,594 228,095 457,909 309,182 88,846 40.3 -148,727 -32.5 188 Richmond-Petersburg, VA 4,012,151 5,260,571 5,389,333 5,609,352 5,571,698 5,396,007 1,383,857 34.5 -175,691 -3.2 189 Riverside--San Bernardino, CA 1,093,799 1,458,850 1,856,457 1,982,060 2,067,878 1,861,225 767,426 70.2 -206,653 -10.0 SPEEHWRITERS US COMMERCE 190 Roanoke, VA 164,042 195,937 231,349 238,327 285,157 436,741 272,699 166.2 151,584 53.2 191 Rochester, MN 53,026 72,680 93,938 92,866 131,825 171,985 118,959 224.3 40,160 30.5 192 Rochester, NY 3,091,529 3,143,662 3,860,521 4,307,694 4,694,459 4,489,782 1,398,253 45.2 -204,677 -4.4 193 Rockford, IL 521,617 616,148 641,363 721,885 758,706 926,475 404,858 77.6 167,769 22.1 194 Sacramento, CA 1,075,601 1,087,947 1,448,342 1,908,648 1,669,522 1,731,873 656,273 61.0 62,351 3.7 195 Saginaw--Bay City-Midland, MI 855,414 776,807 1,035,565 1,254,464 1,654,394 1,557,900 702,486 82.1 -96,494 -5.8 196 Salem, OR 66,294 72,944 111,956 123,013 160,610 138,755 72,461 109.3 -21,854 -13.6 197 Salinas, CA 294,512 321,950 359,860 337,623 393,214 350,484 55,973 19.0 -42,730 -10.9 198 Salt Lake City-Ogden, UT 1,660,879 1,808,673 1,838,151 2,111,534 2,593,603 2,494,809 833,930 50.2 -98,794 -3.8 199 San Antonio, TX 563,928 656,276 771,089 1,049,965 1,342,822 1,640,833 1,076,905 191.0 298,011 22.2 012 200 San Diego, CA 4,357,749 4,867,278 5,860,940 6,719,405 7,810,003 8,591,625 4,233,876 97.2 781,622 10.0 EXPORT SALES OF U.S. METROPOLITAN AREAS, 1993-98 (Thousand $) 1993-98 Changes 1997-98 Changes Metropolitan Statistical Area 1993 1994 1995 1996 1997 1998 $ % $ % 201 San Francisco, CA 9,264,899 9,303,816 8,133,685 8,560,407 9,978,536 9,123,241 -141,658 -1.5 -855,295 -8.6 202 San Jose, CA 16,171,568 19,942,678 26,822,812 29,331,297 29,057,194 26,111,924 9,940,356 61.5 -2,945,270 -10.1 203 Sta. Barbara--Sta. Maria--Lompoc, CA 424,029 420,154 565,199 647,995 623,344 501,280 77,252 18.2 -122,064 -19.6 11/08/99 10:39 FAX 202 4828289 204 Santa Cruz--Watsonville, CA 664,332 857,420 1,408,245 1,943,147 2,298,471 1,800,807 1,136,475 171.1 -497,664 -21.7 205 Santa Rosa, CA 409,067 485,151 572,939 681,825 856,330 862,652 453,585 110.9 6,322 0.7 206 Sarasota--Bradenton, FL 186,881 187,364 182,765 180,243 184,778 208,502 21,622 11.6 23,725 12.8 207 Savannah, GA 442,485 423,262 567,521 459,392 633,410 665,684 223,199 50.4 32,274 5.1 208 Scranton-Wilkes-Barre--Hazleton. PA 266,618 328,151 431,874 391,991 442,414 438,238 171,620 64.4 -4,176 -0.9 209 Seattle--Bellevue--Everett WA 23,815,649 21,752,982 17,815,388 21,391,133 27,005,836 34,003,330 10,187,681 42.8 6,997,493 25.9 210 Sharon, PA 44,057 40,417 60,688 56,909 83,870 81,123 37,066 84.1 -2,747 -3.3 211 Sheboygan, WI 207,104 244,346 258,743 283,284 320,927 316,398 109,294 52.8 -4,529 -1.4 212 Sherman--Denison, TX 34,709 36,149 90,719 147,489 172,401 116,902 82,193 236.8 -55,499 -32.2 213 Shreveport--Bossier City, LA 108,427 134,649 169,130 172,614 180,761 143,305 34,879 32.2 -37,456 -20.7 214 South Bend, IN 179,719 160,344 389,474 494,800 522,082 586,871 407,152 226.5 64,790 12.4 SPEEHWRITERS US COMMERCE 215 Spokane, WA 254,379 269,398 310,892 347,879 445,684 392,689 138,310 54.4 -52,995 -11.9 216 Springfield, IL 23,906 29,804 35,099 35,549 44,371 38,582 14,676 61.4 -5,789 -13.0 217 Springfield, MA 389,756 434,774 512,080 530,286 567,952 442,124 52,367 13.4 -125,828 -22.2 218 Springfield, MO 81,121 103,823 120,178 120,349 141,448 174,408 93,287 115.0 32,960 23.3 219 Stamford-Norwalk, CT 3,366,569 3,452,702 4,937,571 4,424,293 3,387,626 2,778,936 -587,633 -17.5 -608,690 -18.0 220 Stockton--Lodi, CA 287,530 320,347 355,658 357,792 341,576 339,944 52,414 18.2 -1,632 -0.5 221 St. Joseph, MO 36,880 39,198 49,581 94,413 116,366 138,302 101,421 275.0 21,935 18.9 222 St. Louis, MO-IL 3,399,997 3,673,337 3,997,678 4,497,447 4,711,500 4,315,509 915,512 26.9 -395,991 -8.4 223 Syracuse, NY 1,374,087 1,600,940 1,894,295 1,665,452 1,846,740 1,514,849 140,763 10.2 -331,890 -18.0 224 Tacoma, WA 1,115,321 774,869 1,098,921 1,179,693 1,403,801 1,254,287 138,966 12.5 -149,513 -10.7 013 225 Tallahassee, FL 16,093 18,727 24,235 27,238 32,729 47,605 31,512 195.8 14,876 45.5 EXPORT SALES OF U.S. METROPOLITAN AREAS, 1993-98 (Thousand $) 1993-98 Changes 1997-98 Changes Metropolitan Statistical Area 1993 1994 1995 1996 1997 1998 $ % $ % 226 Tampa--St. Petersburg-Clearwater, FL 1,295,739 1,835,814 2,116,050 1,921,833 2,273,787 2,471,471 1,175,732 90.7 197,684 8.7 227 Terre Haute, IN 67,300 88,796 163,625 253,692 264,698 559,337 492,037 731.1 294,639 111.3 11/08/99 10:40 FAX 202_4828289 228 Texarkana, TX-Texarkana, AR 26,687 24,643 52,232 64,068 31,379 55,059 28,372 106.3 23,680 75.5 229 Toledo, OH 836,073 986,928 1,177,715 1,207,523 1,261,051 1,056,631 220,558 26.4 -204,420 -16.2 230 Topeka, KS 121,126 125,199 133,011 130,153 140,659 160,251 39,125 32.3 19,592 13.9 231 Trenton, NJ 223,768 237,502 392,472 267,847 343,383 276,918 53,150 23.8 -66,465 -19.4 232 Tucson, AZ 487,123 638,118 671,723 800,052 1,060,526 1,253,420 766,297 157.3 192,894 18.2 233 Tulsa, OK 1,273,004 1,240,953 1,485,149 1,549,608 1,626,410 1,558,061 285,058 22.4 -68,348 -4.2 234 Utica-Rome, NY 188,304 269,316 237,987 277,993 238,793 240,297 51,993 27.6 1,504 0.6 235 Vallejo--Fairfield--Napa, CA 171,715 263,959 238,118 277,981 384,854 398,845 227,131 132.3 13,991 3.6 236 Ventura, CA 640,298 698,678 953,381 967,263 1,128,883 1,192,466 552,167 86.2 63,582 5.6 237 Visalia-Tulare--Porterville CA 119,559 107,684 120,628 143,732 160,545 178,099 58,540 49.0 17,553 10.9 238 Washington, DC--MD--VA--WV 7,250,600 7,969,303 8,350,435 8,083,517 7,980,732 7,347,782 97,181 1.3 -632,950 -7.9 239 Waterbury, CT 187,546 179,607 207,604 221,590 251,993 258,787 71,241 38.0 6,794 2.7 SPEEHWRITERS US COMMERCE 240 Waterloo-Cedar Falls, IA 102,706 149,661 194,611 200,919 282,797 200,772 98,065 95.5 -82,026 -29.0 241 Wausau, WI 122,465 113,578 117,278 148,856 184,797 158,918 36,453 29.8 -25,879 -14.0 242 West Palm Beach--Boca Raton, FL 764,833 834,284 897,955 955,846 1,156,049 958,964 194,132 25.4 -197,084 -17.0 243 Wheeling, WV-OH 7,365 10,755 9,029 15,125 77,099 99,662 92,297 1253.1 22,563 29.3 244 Wichita Falls, TX 49,571 65,093 80,715 77,030 91,189 105,281 55,710 112.4 14,092 15.5 245 Wichita, KS 1,443,978 1,540,558 1,727,720 1,916,812 2,273,438 1,689,151 245,173 17.0 -584,287 -25.7 246 Williamsport, PA 105,194 123,284 150,363 150,991 182,460 171,219 66,025 62.8 -11,241 -6.2 247 Wilmington-Newark, DE--MD 3,423,784 3,720,373 4,361,106 4,551,096 5,140,642 5,027,356 1,603,571 46.8 -113,287 -2.2 248 Wilmington, NC 147,065 180,669 211,670 301,741 422,892 478,664 331,599 225.5 55,772 13.2 249 Worcester, MA--CT 1,017,883 603,793 757,553 685,676 772,107 745,539 -272,344 -26.8 -26,568 -3.4 014 250 Yakima, WA 135,845 147,573 168,856 176,029 213,127 256,707 120,862 89.0 43,580 20.4 EXPORT SALES OF U.S. METROPOLITAN AREAS, 1993-98 (Thousand $) 1993-98 Changes 1997-98 Changes Metropolitan Statistical Area 1993 1994 1995 1996 1997 1998 $ % $ % 251 York, PA 751,821 952,005 973,936 945,100 1,015,403 1,089,079 337,257 44.9 73,676 7.3 252 Youngstown--Warren, OH 189,253 185,275 225,932 223,130 322,969 296,555 107,302 56.7 -26,414 -8.2 253 Yuba City, CA 62,847 61,461 70,525 73,969 78,468 86,433 23,586 37.5 7,964 10.1 Metro Sample Subtotal 369,926,230 412,272,575 467,658,417 494,486,601 541,006,499 536,380,627 166,454,397 45.0 -4,625,873 -0.9 Other Metropolitan Areas 19,963,536 24,124,634 30,744,923 30,793,258 33,363,528 30,397,473 10,433,937 52.3 -2,966,055 -8.9 Non-Metropolitan Areas 25,932,851 29,367,120 34,188,840 36,891,974 41,567,392 40,376,943 14,444,092 55.7 -1,190,450 -2.9 Crossovers 10,146,130 11,085,648 13,376,086 16,339,329 19,942,030 21,602,733 11,456,602 112.9 1,660,703 8.3 Unknown 38,889,608 35,565,632 37,062,258 44,315,900 51,718,549 51,716,473 12,826,865 33.0 -2,076 -0.0 Total U.S. Merchandise Exports 464,858,354 512,415,609 583,030,524 622,827,063 687,597,999 680,474,247 215,615,893 46.4 -7,123,751 -1.0 Note: All figures show sales by exporters of record located in the indicated area. The sales location may or may not coincide with the location of production. Source: U.S. Census Bureau, Exporter Location Series Prepared by: Office of Trade and Economic Analysis, International Trade Administration, U.S. Department of Commerce 11/08/99 10:40 FAX 202 4828289 SPEEHWRITERS US COMMERCE 016 Top 25 Metro Area Exporters, 1998 Ranked by 1998 Dollar Value ($ Billions) Seattle-Bellevue-Everett WA $34.0 Detroit, MI $27.0 New York, NY $26.6 San Jose, CA $26.1 Los Angeles-Long Beach, CA $25.6 Chicago, IL $22.9 Houston, TX $19.1 Miami, FL $12.9 Minneapolis-St. Paul, MN-WI $11.7 Boston, MA-NH $9.6 San Francisco, CA $9.1 San Diego, CA $8.6 Dallas, TX $8.4 Philadelphia, PA-NJ $8.4 Portland-Vancouver, OR-WA $8.3 Orange County, CA $8.2 Phoenix-Mesa, AZ $8.1 Atlanta, GA $7.9 Washington, DC-MD-VA-WV $7.3 Cincinnati, OH-KY $6.7 El Paso, TX $6.5 Oakland, CA $6.3 Richmond-Petersburg, VA $5.4 Cleveland-Lorain-Elyria, OH $5.3 Wilmington-Newark, DE-MD $5.0 $0 $10 $20 $30 $40 $ Billions Source: Exporter Location Series, U.S. Census Bureau. Prepared by International Trade Administration, U.S. Department of Commerce, 11/08/99 10:41. FAX 202 4828289 SPEEHWRITERS US COMMERCE < 017 Greatest Dollar Gains for Metro Areas, 1997-98 Ranked by Growth in Merchandise Export Value ($ Billions) Seattle-Bellevue-Everett, WA $6.997 Atlanta, GA $1.300 Detroit, MI $1.037 Cincinnati, OH-KY-IN $1.008 San Diego, CA $0.782 El Paso, TX $0.711 Hartford, CT $0.538 Houston, TX $0,523 Middlesex-Somerset-Hunterdon NJ $0.494 Indianapolis, IN $0.469 Austin-San Marcos, TX $0.448 Fort Worth-Arlington, TX $0.410 Philadelphia, PA-NJ. $0.369 Kenosha, WI $0.333 San Antonio, TX $0.298 Terre Haute, IN $0.295 Miami, FL $0.251 Nassau-Suffolk, NY $0.230 Tampa-St. Petersburg-Clearwater, FL $0.198 Newburgh, NY-PA $0.197 Tucson, AZ $0.193 Norfolk-Va. Beach-Newport News, VA-NC $0.190 Eugene-Springfield, OR $0.183 Rockford, IL $0.168 Baltimore, MD $0.160 $0 $2 $4 $6 $8 $ Billions Source: Exporter Location Series, U.S. Census Bureau. Prepared by International Trade Administration, U.S. Department of Commerce. 11/08/99 10:41 FAX 202 4828289 SPEEHWRITERS US COMMERCE 018 Fastest-Growing Metro Area Exporters, 1997-98 Ranked by Percentage Growth in Merchandise Exports Kenosha, WI 143.3 Terre Haute, IN 111.3 Eugene-Springfield, OR 96.3 Newburgh, NY-PA 88.8 Columbia, MO 75.5 Texarkana, TX-AR 75.5 Lafayette, IN 67.4 Lawrence, KS 54.5 Biloxi-Gulfport-Pascagoula, MS 53.4 Roanoke, VA 53.2 Houma, LA 48.8 Tallahassee, FL 45.5 Jackson, TN 44.1 Melbourne-Titusville-Palm Bay, FL 31.7 Alexandria, LA 30.9 Rochester, MN 30.5 Wheeling, WV-OH 29.3 Brockton, MA 27.4 Seattle-Bellevue-Everett, WA 25.9 Cedar Rapids, IA 25.1 Longview-Marshall, TX 23.4 Springfield, MO 23.3 Portland, ME 22.4 San Antonio, TX 22.2 Rockford, IL 22.1 0 50 100 150 200 Percent Change Source: Exporter Location Series, U.S. Census Bureau. Prepared by International Trade Administration, U.S. Department of Commerce. 10:42 FAX 202 4828289 SPEEHWRITERS US COMMERCE 019 Greatest Dollar Gains for Metro Areas, 1993-98 Ranked by Growth in Merchandise Export Value ($ Billions) Detroit, MI $10.2 Seattle-Bellevue-Everett, WA $10.2 San Jose, CA $9.9 Chicago, IL $8.5 Houston, TX $6.8 Los Angeles-Long Beach, CA $5.5 Miami, FL $4.7 San Diego, CA $4.2 Atlanta, GA $4.0 Dallas, TX $3.6 Phoenix-Mesa, AZ $3.6 El Paso, TX $3.6 Boston, MA-NH $3.1 Cincinnati, OH-KY-IN $2.8 Minneapolis-St. Paul, MN $2.6 Portland-Vancouver, OR-WA $2.6 Orange County, CA $2.5 Philadelphia, PA-NJ $2.5 Indianapolis, IN $2.1 Oakland, CA $2.1 Austin-San Marcos, TX $2.1 Middlesex-Somerset-Hunterdon NJ $2.0 Fort Worth-Arlington, TX $1.9 Hartford, CT $1.8 Cleveland-Lorain-Elyria, OH $1.8 $0 $3 $6 $9 $12 $ Billions Source: Exporter Location Series, U.S. Census Bureau. Prepared by International Trade Administration, U.S. Department of Commerce. 11/08/99 10:42 FAX 202 4828289 SPEEHWRITERS US COMMERCE 020 Fastest-Growing Metro Area Exporters, 1993-98 Ranked by Percentage Growth in Merchandise Exports Wheeling, WV-OH 1253.1 Terre Haute, IN 731.1 Albuquerque, NM 560.1 Champaign-Urbana, IL 348.9 Kenosha, WI 345.21 Lafayette, IN 284.6 St. Joseph, MO 275.0 Sherman-Denison, TX 236.8 South Bend, IN 226.5 Wilmington, NC 225.5 Rochester, MN 224.3 Brockton, MA 219.9 Lynchburg, VA 209.1 Columbia, MO 206.2 Tallahassee, FL 195.8 Lexington, KY 194.5 Decatur, AL 194.2 Elmira, NY 192.7 San Antonio, TX 191.0 Harrnsburg-Lebanon-Carlisle, PA 181.0 Panama City, FL 171.4 Santa Cruz-Watsonville, CA 171.1 Longview-Marshall, TX 166.6 Roanoke, VA 166.2 Pittsfield, MA 163.8 0 500 1000 1500 Percent Change Source: Exporter Location Series, U.S. Census Bureau. Prepared by International Trade Administration, U.S. Department of Commerce.