IV
House Calendar No. 229
105TH CONGRESS
2D SESSION
H. RES. 392
[Report No. 105–607, Part I]
Relating to the importance of Japanese-American relations and the urgent
need for Japan to more effectively address its economic and financial
problems and open its markets by eliminating informal barriers to trade
and investment, thereby making a more effective contribution to leading
the Asian region out of its current financial crisis, insuring against
a global recession, and reinforcing regional stability and security.
IN THE HOUSE OF REPRESENTATIVES
MARCH 24, 1998
Mr. BEREUTER (for himself and Mr. BERMAN) submitted the following resolu-
tion; which was referred to the Committee on International Relations,
and in addition to the Committees on Banking and Financial Services,
and Ways and Means, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned
JUNE 25, 1998
Reported from the Committee on International Relations with amendments
[Strike out the preamble and insert the part printed in italic]
[Strike out all after the resolving clause and insert the part printed in italic]
JUNE 25, 1998
The Committee on Banking and Financial Services discharged
JUNE 25, 1998
Referral to the Committee on Ways and Means extended for a period ending
not later than July 17, 1998
JULY 17, 1998
Additional sponsors: Mr. HINCHEY, Mr. CAMPBELL, Mr. SANFORD, Mr. GIL-
MAN, Mr. KOLBE, Mr. WATTS of Oklahoma, Mr. PETERSON of Pennsyl-
vania, Mr. NETHERCUTT, Mr. SOUDER, Mr. BARRETT of Nebraska, Mr.
•HRES 392 RH
MATSUI, Mr. PAXON, Mr. DOOLITTLE, Mr. KNOLLENBERG, Mr. OXLEY,
Mr. PORTER, Mr. FALEOMAVAEGA, Mr. ROYCE, and Mr. WISE
JULY 17, 1998
The Committee on Ways and Means discharged; referred to the House
Calendar and ordered to be printed
[For text and preamble of introduced resolution, see copy of resolution as introduced on March
24, 1998]
RESOLUTION
Relating to the importance of Japanese-American relations
and the urgent need for Japan to more effectively ad-
dress its economic and financial problems and open its
markets by eliminating informal barriers to trade and
investment, thereby making a more effective contribution
to leading the Asian region out of its current financial
crisis, insuring against a global recession, and reinforcing
regional stability and security.
Whereas the maintenance and improvement of a very positive
international relationship between the United States and
Japan is vital to the two countries and to the entire global
economic and trading system;
Whereas the United States-Japan Security Alliance and close
economic cooperation have underpinned the security, sta-
bility, and prosperity of the Asia-Pacific region, thereby
allowing that region to enjoy unmatched economic growth
and development for nearly three decades;
Whereas the current financial crisis in Asia threatens the foun-
dation of Asia’s unmatched peace and prosperity, the sta-
bility of the global economic system, and related vital
American security and economic interests;
•HRES 392 RH
Whereas, 
although 
the 
Government 
of 
Japan’s
$128,000,000,000 economic stimulus and tax reduction
package of April 24, 1998, includes numerous provisions
designed to promote consumer spending and industrial
growth, it is by no means clear that these measures will
restore economic growth or will be targeted at the most
productive sectors of the economy;
Whereas Japan’s generous contributions to second line credits
for the three International Monetary Fund program coun-
tries, South Korea, Thailand, and Indonesia, totaling
$19,000,000,000, and its substantial structural adjustment
loans and export credits to Indonesia, have helped contain
the financial crisis, but are an inadequate alternative to
a strong Japanese economy;
Whereas Japan accounts for three-fourths of the total East
Asian Gross Domestic Product and therefore has the poten-
tial to help pull the region out of the financial crisis by
serving as its ‘‘engine of growth’’, just as the United
States, by being an ‘‘engine of growth’’ and having open
markets, earlier assisted Mexico emerge from a substantial
financial crisis;
Whereas a further weakening of the yen could trigger a round
of competitive devaluations among Japan’s Asian neigh-
bors;
Whereas deteriorating economic conditions and ongoing finan-
cial market turbulence in Asia make it increasingly im-
portant that Japan play a leadership role in helping to
restore confidence in the economic future of the region;
Whereas that regional leadership role coincides with Japan’s
stated goal of promoting strong domestic demand-led
•HRES 392 RH
growth and avoiding a significant increase in its external
trade surplus;
Whereas Japan’s continued economic stagnation depresses the
level of its imports from the United States and other coun-
tries in the Asia-Pacific region, thereby forcing its neigh-
bors in the region to rely more heavily on their exports to
the United States for growth;
Whereas weakened economic fundamentals in Japan and an
accommodative monetary policy, coupled with a robust
United States economy, have weakened the value of the
Japanese yen against the United States dollar and there-
fore stimulated a rapid expansion of exports and a fast-
growing merchandise trade surplus with the United States,
which increased from $48,000,000,000 in 1996 to
$55,000,000,000 in 1997;
Whereas the bursting of Japan’s investment bubble in 1991 has
been accompanied by protracted asset-price and balance
sheet adjustments by Japanese financial institutions, lead-
ing to a scarcity of credit and weak growth;
Whereas policies favoring low interest rates had encouraged,
until recently, excessive private sector lending to overly in-
debted enterprises in Indonesia, Korea, and Thailand, and
thereby contributed to the private debt crisis in the region;
Whereas past efforts to stimulate recovery through deficit
spending targeted at the construction sector have proved
inadequate and failed to accomplish their desired objec-
tives;
Whereas inadequate deregulation initiatives have failed to re-
store vitality to the Japanese economy, while truly signifi-
cant deregulation could add as much as a percentage point
or more to Japanese economic growth; and