I
103D CONGRESS
2D SESSION
H. R. 4458
To promote United States industry and technology in competition with Japan.
IN THE HOUSE OF REPRESENTATIVES
MAY 19, 1994
Mr. KOLBE (for himself, Mr. KOPETSKI, Mr. DREIER, Mr. LIVINGSTON, Mr.
HYDE, Mrs. JOHNSON of Connecticut, Mr. GILCHREST, Mr. MCCRERY,
Mr. EHLERS, Mr. HORN, and Mr. PORTMAN) introduced the following
bill; which was referred to the Committee on Foreign Affairs
A BILL
To promote United States industry and technology in
competition with Japan.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘United States-Japan
Export Development and Technological Competitiveness
Act of 1994’’.
SEC. 2. FINDINGS.
The Congress finds that—
(1) the United States trade deficit with Japan
of more than $59,000,000,000 in 1993 and the
worldwide Japanese current account surplus of more
than $131,000,000,000 are but two measures of the
unfair and chronically imbalanced state of Japan’s
international economic relations;
(2) even more indicative of the closed nature of
the Japanese market to foreign products are statis-
tics detailing the marginal penetration of sales and
investment in Japan by foreign companies, particu-
larly when compared to the significant Japanese
penetration of the United States market;
(3) although Japan is the second largest mar-
ket for manufactured goods in the industrialized
world, in 1992, according to the Japanese Ministry
of International Trade and Industry, only 1.2 per-
cent of all sales and .9 percent of assets in the Japa-
nese economy were attributable to foreign compa-
nies, with United States corporate affiliates account-
ing for roughly .7 percent of total product sales and
approximately $89 per capita in inward direct in-
vestment;
(4) in contrast, in 1992 foreign corporate affili-
ates accounted for almost 17 percent of all sales and
20 percent of all assets in the United States econ-
omy, with an estimated 4.8 percent of total product
sales and $594 per capita in accumulated inward di-
rect investment in the United States coming from
Japanese corporate affiliates, so that Japanese cor-
porate affiliates have a net sales and investment
penetration level in the United States that exceeds,
by almost 7-fold on a per capita basis, that of
United States corporate affiliates in Japan;
(5) the majority of the blame for this highly un-
balanced situation rests with the Government of
Japan, which has striven through an intricate mix-
ture of tariffs, controls, and domestic regulations on
the flow of goods and capital to, from, and within
Japan to keep foreign and Japanese entrepreneurs
desiring to do business in Japan from succeeding;
(6) 
today 
the 
market 
regulatory 
and
interventionary policies of the Japanese Government
that intentionally or unintentionally serve to keep
foreign companies from doing business in Japan
must be removed to maintain the strength of the
United States-Japan relationship and to improve the
growth of the world economy;
(7) United States trade and trade promotion
policies toward Japan must also change to reflect
post-Cold War priorities of export expansion and
technological competitiveness, the central objective of
which is to help United States companies become as
(10) the expedient expansion of the Market De-
velopment Cooperator Program will have a signifi-
cant impact on facilitating greater United States ex-
ports to Japan and on enhancing the awareness by
United States industry of competitive developments
and opportunities in the Japanese market.
TITLE 
I—MARKET 
DEVELOP-
MENT 
COOPERATOR 
PRO-
GRAM
SEC. 101. EXPANSION OF THE MARKET DEVELOPMENT CO-
OPERATOR PROGRAM IN JAPAN.
(a) AUTHORIZATION OF APPROPRIATIONS.—In addi-
tion to funds otherwise available for such purpose, there
are authorized to be appropriated to the Department of
Commerce for fiscal year 1995, $3,000,000—
(1) to increase the number of United States
manufacturing and service sector industry associa-
tions in Japan participating in the Market Develop-
ment Cooperator Program established under section
2303 of the Export Enhancement Act of 1988 (15
U.S.C. 4723); and
(2) to expand the trade promotion, techno-
logical monitoring, and industry analysis activities
undertaken before the enactment of this Act by
United States nonprofit manufacturing and service
trade associations in Japan.
(b) REPORTS ON THE PROGRAM.—Section 2303 of
the Export Enhancement Act of 1988 (15 U.S.C. 4723)
is amended by adding at the end the following:
‘‘(e) REPORTS
TO CONGRESS.—The Secretary of
Commerce shall report annually to the Committee on For-
eign Affairs and the Committee on Appropriations of the
House of Representatives and to the Committee on Bank-
ing, Housing, and Urban Affairs and the Committee on
Appropriations of the Senate on the progress the Depart-
ment of Commerce has made in implementing the Market
Development Cooperator Program and in allocating fund-
ing to cooperator recipients in Japan.’’.
TITLE II—UNITED STATES EX-
PORT 
DEVELOPMENT 
AND
TECHNOLOGY 
CENTER 
IN
JAPAN
SEC. 201. SENSE OF CONGRESS.
(a) UNITED
STATES
TRADE
RELATIONS
WITH
JAPAN.—It is the sense of the Congress that—
(1) in this post-Cold War era, promotion of eq-
uitable economic relations with all trading partners
and in particular Japan must be given increased em-
phasis in the conduct of United States foreign pol-
icy;
(2) working closely with industry, the United
States Government should endeavor to ensure that
United States-owned and operated companies are
positioned adequately to take advantage of opportu-
nities for market entry and expansion in Japan;
(3) technological developments in Japan should
be followed closely and analyzed for their ramifica-
tions on United States industrial competitiveness
and economic security;
(4) the United States Government should be in
a better position to support United States industry
in disputes with the Japanese Government and Jap-
anese businesses and to publicize the merits of
United States products to the Japanese people; and
(5) an Export Development and Technology
Center established in Tokyo would assist in accom-
plishing the goals set forth in paragraphs (1)
through (4) and could serve as a cornerstone of a
new United States constructive response to the Jap-
anese economic challenge.
(b) PURPOSE OF EXPORT DEVELOPMENT AND TECH-
NOLOGY CENTER.—It is further the sense of the Congress
that an Export Development and Technology Center in
Tokyo, Japan, should—
(1) embody a new United States Government-
industry partnership in expanding United States
corporate penetration of the Japanese market and in
monitoring, analyzing, and coordinating responses to
Japanese scientific and technological developments;
(2) provide a wide range of information to Jap-
anese consumers on the high costs of the Japanese
standard of living as compared to other industri-
alized nations, as well as on the benefits to Japanese
consumers of a more open, deregulated, and trans-
parent economy;
(3) correct misperceptions of United States
products in the Japanese media and publicize the
negative impact of excessive economic regulation by
the Japanese Government on importers and Japa-
nese entrepreneurs;
(4) serve to create jobs in the United States
and enhance the competitiveness of the United
States industrial base;
(5) help United States industries help them-
selves in the provision of detailed knowledge and
analysis of the Japanese market and facilitate the
promotion of their respective concerns and interests
to the Japanese Government, business community,
and public;
(6) improve the ability of the United States
Government to monitor Japanese scientific and tech-
nological developments related to United States in-
dustrial competitiveness and national security and
centralize current efforts where desirable;
(7) ensure that a common United States Gov-
ernment and business community interest in increas-
ing access for United States made products to the
Japanese market is visibly and forthrightly promoted
directly in Japan;
(8) contain offices for export-oriented United
States sectoral industry associations;
(9) contain a Government-operated science and
technology information and assessment facility de-
signed to—
(A) centralize United States Government
data 
collection 
and 
analysis 
of 
sectoral,
subsectoral, and macro-trend developments in
Japanese science and technology; and
(B) ensure that science and technological
developments in Japan are monitored closely,
formally assessed for their implications to
United States industrial competitiveness, thor-
oughly catalogued, and made available on-line
in computerized form to United States busi-
nesses; and
(10) provide office facilities for a portion of the
foreign office of the United States and Foreign
Commercial Service in Japan.
SEC. 202. FEASIBILITY STUDY ON THE ESTABLISHMENT OF
A UNITED STATES TRADE DEVELOPMENT
AND TECHNOLOGY CENTER.
(a) STUDY.—The Secretary of Commerce shall con-
duct a study of the feasibility and viability of establishing
a United States Government-owned and operated Export
Development and Technology Center in Tokyo, Japan, as
described in section 201(b).
(b) REPORT.—The Secretary shall, not later than
180 days after the date of the enactment of this Act, sub-
mit a report on the study conducted under subsection (a)
to the Committee on Foreign Affairs and the Committee
on Appropriations of the House of Representatives and to
the Committee on Banking, Housing, and Urban Affairs
and the Committee on Appropriations of the Senate.
(c) SOLICITATION
OF VIEWS.—In conducting the
study under subsection (a), the Secretary of Commerce
shall solicit the views of the following individuals and