European Stars and Stripes (Newspaper) - December 11, 1990, Darmstadt, Hesse                                Page 10 columns the stars and stripes Jonathan Paul Yates it s time . Many issues arc called before Congress but few have been chosen for the attention focused on foreign investment. More than 20 Bills have been introduced concerning various aspects of foreign investment including disclosure requirements for the owners tax avoidance and the handling of crucial technology. Foreign investment ranging from Banks in Manhattan to beachfront prop cry in Hawaii to Matsushita s acquisition of Mca totals More than $663 billion than americans own abroad making the United states the worlds most indebted nation rep. Helen Dulich Bentley red has warned repeatedly of the threat of japanese economic domination through strategic investment in the United states. Sen. Barbara a. Mikuski d-md., cd pressed concern about the commitment of foreign owners to local charities such As the United a Way. Rep. Thomas dec Millend my cautioned a was members of Congress we must always remember that foreign investors by to Cir very nature will have different values and objectives than will  polls reveal that about 80 percent of americans Feci the sovereignty of the untied states is threatened by foreign investment. \ Congress is considering legislation that would ban political action committees at foreign owned companies. More than $j00 million annually is expended by overseas investors on lobbying fees political a t to n com m i t the c co n t rib u t Ion s an d other Public relations activity to influence government actions in the United states. Mcmillen cited news articles reporting a that the japanese Trade ministry had proposed a $200,000 grass roots Campaign to promote their Trade interests and that foreign investors Are forming a lobbying group to promote their interests. V a that foreign investors spend hundreds of millions annually to promote and protect their interests is to be expected. But As Mcmillen warned the interests and objectives of foreign investors will be different from those of an american. Foreign investment can reduce economic Opportunity for americans. By a 20-1 margin in terms of workers Ern played foreign investors buy Quot existing . Companies rather than starting up new ones. Department of. Commerce data show that foreign owned companies prefer to contract with suppliers Back Home rather than . Firms. For each worker employed foreign owned businesses inv ported goods Worth More than $40,000. The comparable figure for american owned businesses is about $3,000 for each worker adding billions to the Trade Defi Cit. A a a a a. Control of Basic industries is also threatened. Foreign owned companies control 55 percent of the leather goods Market in the United states 28 percent of banking 25 percent of apparel 23 percent of transport Tori 20 percent of electronics cd 20 percent of the primary metals and instruments markets. Organization of Petroleum exporting countries nations control a Large number of refineries and Gas stations in the United states. The United states could not go to War without having to rely heavily on suppliers controlled by overseas entities foreign investment also distorts the Economy. In growth years foreign investors buy up the Best assets driving up prices. Purchases of new York real estate by overseas buyers Are considered to have inflated prices 20 percent. During Low growth periods distress Selling by foreign investors forces Down the Market. Japanese and other investors Are now Selling their holdings of . Real estate stocks and Bonds exacerbating recessionary conditions. The Federal Reserve finds its options restricted by foreign activity in . Treasury Bonds. For the 1980s, foreign investors bought about $80 billion annually in Treasury Bonds helping finance the budget deficit and keep interest rates Low but in the first six months of 1990, foreigners sold $20 billion More in Treasury Bonds than they bought leaving Little room for the Federal Reserve to lower interest rates to Avert a recession in the United states. The argument is made that foreign investment poses no threat but brings  gains from capital infusions new technology and innovative management techniques. Then Why do other advanced countries such As Japan control the Access of foreign investors to their markets and Economy sonic countries that have invested heavily in the United states do not even allow foreigners to own businesses in their own domains. Others limit the extent of the investment to minority ownership in joint  United states has become addicted to foreign investment. Foreign capital was crucial in underwriting robust real estate Stock and Bond markets during the 1980s. But now these markets Are suffering As foreign funds flow else there. . Leaders can no longer act without considering their foreign owners and their investment dollars. Massive foreign investment in the words of one department of Treasury official will make the United states into a third world indebted nation a Beholden to overseas creditors. Always worrying about rolling Over its foreign debt and its creditors reactions when it makes policy.�?�. A Quot a a a a a a Steps must be taken to Deal with foreign investment in the United states. First disclosure requirements must be upgraded. Due to lax requirements . Authorities cannot even track Down investment held by iraqis. Legislation must also be passed mandating the use of american companies As suppliers and subcontractors As governments in the United states must award business to minority groups. Reinvestment provisions like those for Banks should be enacted to ensure that All foreign investors give something Back to local communities. These Are measures that should be taken at local state or National Levels. Some foreign investment is beneficial and desirable but the government should regulate it As it does any economic activity to ensure that the Community profits along with the business entity. A a c the Baltimore Sun a. \ a Yates. A former congressional aide is a tree Lance writer on International Trade issues a. A Jim Fain sound and fury Over White House Agenda a a third rattle of the Marne has broken out for the heart and soul such As they Are. Of the Republican party or so you probably believe if you read the local press. What actually happened was some of the usual Spear Carder infighting suddenly went Public largely because budget director Richard Darman finds wordplay irresistible. He a like a Veteran drunk he knows the stuffs bad for him but he can to turn it Down especially an elaborate Pun. So he peppered up a Dull speech by poking fun at the Lyst rites struggle of Roii level White House staffers to concoct some kind of gimmick to fill the Bush Domestic policy vacuum. A a / these worthies had scrounged several idea kicked around for years mostly on Hud Secretary Jack Kempis ancient and eternal Agenda and gilded them with the grand sounding title a the new  the quaint Ness of this Baui cry overloaded Parmann a funny Bone. He mocked the whole thing As a Oneo Neo ism and suggested it would strike Joe six pack As a brother can you paradigm a a mortal affront obviously not just to the perpetrators but More important to House gop whip Newt Gingrich who lusted for a headline re entry vehicle following a Surprise Squeaker at the polls that indicated not everyone in his suburban Atlanta District was enthralled with his new Eminence As right Wing Swami. He hit Darman with the dirtiest name he could think of Michael Dukakis and demanded his head igniting the ritual Media firestorm. Washington a elite Are All courtiers by Trade including unfortunately Many journalists. Any Tiff in the Palace guard is pocketbook news it could affect ones place at table. In our giant Media Echo chamber each such pop gun reverberates endlessly providing Welcome fodder to punditry a High minded search for meaning and portents. Beneath the sound and fury All it really Means is sometime Between now and the state of the Union president Bush chief of staff John Sununu and Darman will dither around with staff papers and endorse a meaningless but Noble sounding package of half measures which then will be hailed by Gingrich and other ideology paddlers of the right As the Savior of the poor and working class. Bush and Sununu will give this halfhearted backing to a generally hostile Congress and nothing will result except a gaseous Boon for those republicans cynical enough to use it. \ too bad because some of the ideas a while nothing like the panaceas their evangelists claim a Are workable More tax credits for working poor voucher Choice in schools extended private ownership and tenant control in Public housing and selective tax subsidies to business in blighted Urban zones. They Don t add up to the free lunch Gingrich promises however. Bush already poses As education presi Dent on the Back of the states and environment president at the expense of Industry. Some of the things we need to do Cost real dollars not All of which can come from somebody else a Wallet that Sparmann a problem. He wants to know How much and who a going to pay the answer is nothing and nobody.  All just talk sound bites for another Bush Campaign like the last one Jack Kemp is the Only Guy in town who under the Media veneer takes this stuff so Cox news service \