Legendary Tariffs Speech, Us Congress 1985 - Topic

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Apr 6 2025 05:32pm

For Full Complete Speech please click here

https://www.nas.gov.sg/archivesonline/data/pdfdoc/lky19851009.pdf

Excerpt of the Speech in the video above

Unfortunately, or perhaps fortunately for the
rest of the world, the US Constitution enshrines a system of open government
which does not allow its leaders to exercise such dominion over other countries
and governments in the same way that leaders of totalitarian states can.

Let us not forget that protectionism and less trade mean less growth for the
developing countries. This means debt burdens cannot be discharged. Defaults
may be unavoidable, with incalculable consequences for the international banking
system.

Even if the banks survive the upheavals, these developing countries will
have to abandon all thoughts of liberalisation towards plurality and more
democratic freedoms. Severe or repressive government is the other side of
austere or negative economic growth.

An over-strong dollar has caused the huge trade deficits. A volatile and
speculative foreign exchange market has exaggerated the factors working
towards a strong dollar.

The recent meeting in New York of the G5, Finance
Ministers of five largest industrial nations, has given grounds for optimism that
the over-valued dollar can be brought down by concerted action of the G5
Finance Ministers and their Central Banks. Congress should stay its hand and
allow these efforts time to work.

In case lobbyists for the Japanese believe they are going to be joined by
one from Singapore who ought to register his interests, let me add that I do not
suggest that the Japanese should not be cajoled, and if necessary coerced, with
all the powers at America’s command, to open up their markets. America can
legitimately and justly use all means to knock down Japanese barriers and
obstacles to imports.

There was a time in the 1950s and 60s when America
looked with amusement and tolerance at the ingeniousness of Japanese obstacles
to imports. But, after Japan has become the second largest economic power, as a
result of open and fair trade, it is right that she should be made to abide by the
rules that have brought her to her present unprecedented prosperity.
The rest of Asia will cheer with joy, for then their goods will also get into
Japan without going through an obstacle course.

Let me add that 96 per cent of US goods enter Singapore duty free and quota free. And for 14 out of the last 15
years, the US has enjoyed trade surpluses with Singapore.

But for America to put tariffs or barriers to Japanese goods, instead of tearing down Japanese
barriers to American exports, will hurt the rest of Asia twice over, first by having
these same tariffs and barriers to overcome to sell to America, and second, by not
being able to sell to Japan because Japan cannot sell to America.

It is right to compel the Japanese, and others, to help the system function
better. And if threatening retaliation for unequal access to markets is part this
process towards open and fair trade, then so be it.

America has the right to also ask that those who have benefited from America’s markets, open up their
markets.

Some countries, like ASEAN, have supported the US initiative to have
GATT being a new round of discussion for lowering barriers to trade in goods
and perhaps also regularise trade in services. The answer to job losses is more,
not less trade.

America can upgrade her declining low value-added industries or they will
continue to decline whether America goes protectionist or not, just as the ancient
agricultural societies of pre-industrial China and Japan, with their self-sufficient,
subsistence economies base on buffalo power and manpower, had to change with
the advent of the industrial age.

Rapid and profound change is the kind of world
Americans have created by their inventiveness. American legislators have the
awesome responsibility of deciding under what rules the peoples of so many
different countries should undergo rapid changes in their ways of making a living,
and yet avoid violent conflicts.

In every age, the leading power has to carry the burden of encouraging the
peaceful acceptance of the status quo.

This is done by punishing aggression and rewarding peaceful cooperation. The British carried this burden for over 100
years after they pioneered the Industrial Revolution. This responsibility passed
to America after World War II.

It is inherent in America’s position as the pre-eminent economic, political
and military power to have to settle and uphold the rules for orderly change and
progress. Americans are leaders in a marathon for technological change and
product innovation.

American enterprise is blazing the trail into the microchip and computerised world of tomorrow. In the interests of peace and security
America must uphold the rules of international conduct which rewards peaceful
cooperative behaviour and punishes transgressions of the peace.

A replay of the depression of the 1930s, which led to World War II, will be ruinous for all. All
the major powers in the West share the responsibility of not repeating this
mistake. But America’s is the primary responsibility, for she is the anchor
economy of the free market economies of the world. In your hands therefore lies
the future of the world.

This post was edited by Hamsterbaby on Apr 6 2025 05:35pm