Protectionist legislation pending in Congress would lay waste to Illinois agriculture and industry, Gov. James Thompson told the Japanese press as he wound up a two-week trade mission to South Korea and Japan last week.
In a press conference and a separate interview, Thompson–the first American governor invited to speak at the Japan National Press Club–hammered away at the danger of American businesses relying on ”ill-advised”
protectionist measures to help them cope with foreign competition.
However, Thompson told The Tribune, it`s increasingly difficult to maintain his position at home, because political opponents are having success in waving the flag of protectionism, which he called a simplistic, short-term campaign tactic.
”It`s very hard to explain to a laid-off Caterpillar worker why you won`t support a `Buy America` bill,” Thompson said. ”They just don`t understand the abstract argument that half a million jobs in Illinois depend directly on exports. Even in the case of Caterpillar, most of its profits came from exports, not from domestic sales. And so for a UAW Caterpillar member to be advocating a `Buy America` bill is a contradiction in terms.”
He said one way for Koreans and Japanese to hold back the tide of protectionism sweeping across America is to ensure better access to their markets and direct more investment to midwestern manufacturing states like Illinois that have been hit hard by jobs lost to foreign competition.
”I think the most potent political weapon Japan has to answer the cries of protectionism is more investment in the U.S. market,” Thompson said. ”It will enhance their market shares, and it gives governors something to point to in arguing with members of Congress on the protectionism issue. I need to be able to point to jobs in Illinois held by Illinoisans to counter cries for protectionism. If I don`t have them, then you leave me defenseless. I won`t be able to stand up there and make any counterarguments.”
Thompson cited the $500 million Mitsubishi Diamond Star automobile plant planned for Bloomington and Japan Air Lines Development Corp.`s planned construction of the $70 million Nikko Hotel in Chicago`s North Loop as examples of that strategy.
Unfortunately, the South Koreans aren`t in a position to equal Japanese investment in Illinois, said Thompson, who spent a week in South Korea before coming to Japan.
”Korean companies told me they need to get a larger share of the American market before they can make any substantial manufacturing
investments,” Thompson said, ”though I do expect to see some Korean auto component companies setting up shop in the U.S., and I wouldn`t be surprised to see some Korean electronics manufacturers coming in soon. There is no question that their goal is to overtake the Japanese in the American market.
”It`s only a matter of time, and if we don`t make the trip to Korea now and become acquainted, then how do we hope to compete when the decision time comes,” Thompson said. ”I can`t sit back and wait until the chairman of Daewoo Corp. announces he is going to bring an enterprise to the U.S. and then fly to Korea and say, `Oh, hi, my name is Jim Thompson and here`s a state called Illinois.` ”
Developing business relationships in Asia ”requires long periods of cultivation,” Thompson said. ”For example, I first spoke to the president of Mitsubishi Motors in 1979. It requires patience. For that I am well trained. I am a Chicago Cubs fan.”
While Thompson`s trip to Korea was his first, his visit to Japan was his sixth since becoming governor nine years ago, making him easily the most visible of American governors to Japan.
Thompson said that as much of the fault for failing to garner more of the Japanese market lies with American businessmen as with the Japanese government.
”A lot of American companies are too lazy to do the market research needed to tailor their products for the Japanese market,” Thompson said.
”They sit in New York or Chicago and think about going into Dallas with a product, and they spend God-awful amounts of money doing market research. And yet when they think about foreign markets, if they do and if they get over the old wives tales about how difficult it is, they`re content to ship over the product that`s sold in Dallas. Well, Yokohama is not Dallas.”
