5.
Jasinowski was receptive to our usual points on Clinton's proposals regarding the taxation of foreign companies. Their membership contains many foreign-owned companies, and they also recognise that unilateral action by the US could have unwelcome repercussions abroad. They would be ready to make the same points to the Clinton Administration as we were currently making. NAM's position on foreign investment was described as "neutral" which actually means that there should be the fewest possible impediments to the free flow of investment between countries. But Mr Lewis said that in practice there were some problems with Japanese investment in the US because of the keiretsu practices of Japanese companies in the choice of component suppliers and their involvement with Japanese rather than American banks.
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forell
6. NAM are worried about Clinton's policies on China. Jasinowski was working on a long letter to him urging him to avoid a big mistake. Clinton's foreign policy advisers seemed not to have appreciated that this would be a more difficult issue for him in office than NAFTA had been during the election campaign. The bill on China trade could be expected to be introduced at the start of the new Congress - well before the June renewal date for MFN under Jackson-Vanik. Jasinowski thought that Hong Kong's position as an entrepot for Chinese exports was not well understood on the Hill. This was an area where lobbying by the Embassy could be productive.
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AV
Antony Vinall
Counsellor (Trade Policy)