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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 216 Introduced in Senate (IS)]

105th CONGRESS
  2d Session
S. RES. 216

Expressing the sense of the Senate regarding Japan's difficult economic 
                               condition.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             April 24, 1998

 Mr. Lieberman (for himself, Mr. Lugar, Mr. Graham, Mr. Brownback, Mr. 
  Bingaman, and Mr. Rockefeller) submitted the following resolution; 
        which was referred to the Committee on Foreign Relations

_______________________________________________________________________

                               RESOLUTION

 
Expressing the sense of the Senate regarding Japan's difficult economic 
                               condition.

Whereas the United States and Japan share common goals of peace, stability, 
        democracy, and economic prosperity in the Asia-Pacific Region;
Whereas the current economic crisis in the Asia-Pacific Region represents a new 
        challenge to United States-Japan cooperation to achieve these common 
        goals;
Whereas the Japanese economy, the second largest in the world, has been growing 
        a little over 1 percent annually since 1991 and most forecasts suggest 
        that Japan is unlikely to experience any significant growth in the near 
        future;
Whereas Japan's is the second largest trading partner of the United States and 
        accounts for 11 percent of our total foreign trade;
Whereas Japan accounts for over 70 percent of the Asia-Pacific Region's gross 
        domestic product and therefore has a particular interest in the 
        stability of the Region's economic and financial system;
Whereas a strong United States-Japan alliance is critical to American forward 
        engagement and stability in the Asia-Pacific Region;
Whereas the importance of the United States-Japan alliance was reaffirmed by the 
        President of the United States and the Prime Minister of Japan in the 
        April 1996 Joint Security Declaration;
Whereas United States-Japan bilateral military cooperation was enhanced with the 
        revision of the United States-Japan Guidelines for Defense Cooperation 
        in 1997;
Whereas Japan's failure to contribute to the Region's recovery from the current 
        economic crisis or failure to prevent a further contraction of the 
        Japanese economy could undermine regional stability, cause a setback in 
        the close United States-Japan bilateral security cooperation achieved 
        over the past 3 years, and increase Japan's bilateral and global trade 
        surplus;
Whereas the low level of foreign direct investment in Japan, at less than 1 
        percent of Japan's gross domestic product compared to foreign direct 
        investment in the United States of over 8 percent of the United States 
        gross domestic product, contributes to large external trade imbalances 
        and impedes market access for competitive foreign firms and products;
Whereas the United States bilateral trade deficit with Japan increased from 
        $48,000,000,000 in 1996 to $56,000,000,000 in 1997 and has recently 
        increased from $4,000,000,000 in January of 1998 to $5,300,000,000 in 
        February of 1998;
Whereas the recent weakness in the yen, following a more than 20 percent 
        depreciation of the yen against the dollar over the last few years, has 
        placed competitive price pressures on United States industries and 
        workers;
Whereas a period of deflation in Japan would lead to lower demand for United 
        States products;
Whereas the estimated $574,000,000,000 of problem loans in Japan's banking 
        sector has the potential to threaten the recovery of the Asia-Pacific 
        Region and could destabilize global capital markets;
Whereas the unnecessary and burdensome regulation of the Japanese market 
        constrains Japanese economic growth, raises the costs to business and 
        consumers, lowers the standard of living, and impedes imports;
Whereas the United States strongly encourages Japan to pursue a domestic demand-
        led economic recovery and thereby prevent further increases in Japan's 
        external trade surplus;
Whereas the Japanese Government has responded to the Asia-Pacific Region's 
        economic crisis with financial commitments of approximately 
        $19,000,000,000 to the International Monetary Fund; and
Whereas the United States appreciates Japan's efforts to stimulate its economy 
        with the recently announced package of 16,000,000,000,000 yen that 
        includes 4,500,000,000,000 yen in tax cuts and 11,500,000,000,000 yen in 
        government spending: Now, therefore, be it
    Resolved, That it is the sense of the Senate that--
            (1) the American people and the countries in the Asia-
        Pacific Region are looking for a demonstration of Japanese 
        leadership and close United States-Japan cooperation in 
        resolving the current crisis;
            (2) encouraging the strengthening of the Japanese economy 
        should be one of the Administration's central priorities in all 
        its bilateral and multilateral discussions with Japan;
            (3) every effort possible should be made to ensure that all 
        other negotiating objectives are consistent with the overall 
        goal of promoting economic growth in Japan, improving market 
        access to Japan, and restoring stability to international 
        financial markets;
            (4) the President should continue to voice his serious 
        concern about the economic situation in Japan, the 
        international, regional, and bilateral implications of the 
        situation, and the need to address significant structural 
        impediments to competition in the Japanese markets, in order to 
        restore confidence in the Japanese economy and contribute to 
        the Asia-Pacific Region's political stability and economic 
        recovery;
            (5) the President, the Attorney General, the Secretary of 
        the Treasury, and the United States Trade Representative should 
        emphasize the importance of financial deregulation, including 
        banking reform, market deregulation, and restructuring bad bank 
        debt;
            (6) the President, the Secretary of the Treasury, the 
        United States Trade Representative, and the Secretary of 
        Commerce should press vigorously for comprehensive and urgent 
        deregulation and fundamental structural reform of the Japanese 
        economy and sectoral markets, liberalization of the 
        distribution system, and elimination of nontariff barriers and 
        anticompetitive business practices that restrict the free flow 
        of competitive goods and services, in order to increase market 
        efficiencies and enhance competition, lower prices, improve 
        market access, and redress global trade imbalances;
            (7) the President, the United States Trade Representative, 
        the Secretary of Commerce, and the Attorney General should 
        continue to press for--
                    (A) increased antitrust enforcement by the Japan 
                Fair Trade Commission, and
                    (B) strengthening of the Antimonopoly Act to 
                eliminate private practices that restrict competition;
            (8) the President, the Secretary of the Treasury, the 
        United States Trade Representative, the Secretary of Commerce, 
        and the Secretary of State should urge the Government of Japan 
        to open the Japanese market to increased foreign direct 
        investment and eliminate barriers to foreign direct investment 
        in order to increase the competitiveness of the Japanese 
        economy and stimulate investment and consumer spending; and
            (9) restoring economic growth in Japan and stability in 
        international financial markets should be given the highest 
        attention at the upcoming meeting of the G-7 countries that 
        will be held in Birmingham, England.
                                 <all>
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