By The
Associated Press
Edited by Kristine Long
NEWS DIGEST
Nelrraskan
Friday, March 4,1994
Clinton announces revival of trade ‘weapon’
ident said as he announced his deci
sion. “This action will help us reach
our objective.”
Administration officials denied
they were trying to start a trade war
with Japan, but they said the United
States would not relent in its efforts to
open Japan’s markets as a way of
narrowing a record $59.3 billion trade
imbalance between the two nations.
The administration already has the
power to initiate market-opening in
vestigations and impose tariffs if the
talks fail to produce results under the
regular Section 301 of the 1974 trade
act.
The clock will begin running March
31 with publication of an annual “Na
tional Trade Estimate Report” that
provides a survey of unfair trade prac
tices that are harming U.S. exporters
around the world.
The administration will by Sept.
30 designate “priority foreign country
practices” that arc blocking the larg
ident said as he announced his deci
sion. “This action will help us reach
our objective.”
Administration officials denied
they were trying to start a trade war
with Japan, but they said the United
States would not relent in its efforts to
open Japan’s markets as a way of
narrowing a record $59.3 billion trade
imbalance between the two nations.
The administration already has the
power to initiate market-opening in
vestigations and impose tariffs if the
talks fail to produce results under the
regular Section 301 of the 1974 trade
act.
The clock will begin running March
31 with publication of an annual “Na
tional Trade Estimate Report” that
provides a survey of unfair trade prac
tices that are harming U.S. exporters
around the world.
The administration will by Sept.
30 designate “priority foreign country
practices” that arc blocking the larg
est amount of U.S. exports and begin
a 21 -day period of preliminary nego
tiations.
If those preliminary talks fail to
produce results, the United States
would initiate a formal investigation
that could take up to 18 months and
allow time for further negotiations.
Only if those talks proved fruitless
would the United States impose sanc
tions. That period could stretch until
March 1996 although administration
officials said if the talks were going
nowhere, sanctions could come much
sooner.
“We regret that the United States
made a decision to revive Super 301
said Seiichi Kondo, a spokesman for
the Japanese embassy. “We certainly
hope the United States will recognize
the inherent dangers” in imposing
unilateral trade sanctions,
warned about counter-retaliation on
the part of Japan if the United States
siaps puni t i ve tari ffs on Japanese prod
. .i
ucts.
U.S. Trade Representative Mickey
Kantor said the administration had no
choice but to revive Super 301 in its
efforts to open Japan’s markets.
The decision was made in the wake
of the collapse of “framework” trade
talks between the United States and
Japan on Feb. 11 that marred a sum
mit meeting between Clinton and Jap
anese Prime Minister Morihiro
Hosokawa.
ucts.
U.S. Trade Representative Mickey
Kantor said the administration had no
choice but to revive Super 301 in its
efforts to open Japan’s markets.
The decision was made in the wake
of the collapse of “framework” trade
talks between the United States and
Japan on Feb. 11 that marred a sum
mit meeting between Clinton and Jap
anese Prime Minister Morihiro
Hosokawa.
a -i • 1
W V
The president called Hosokawa to
inform him personally of the decision
and described the talk as a “friendly,
forthright” discussion.
The two countries appeared no clos
er to resolving the fundamental dis
pute between them—a U.S. demand
that Japan agree to setting specific
import goals in the framework talks.
The Japanese have said they will put
forward a new market-opening offer
by the end of this month.
Israel-PLO talks still at standstill
RAMALLAH, Occupied West
Bank — Israel released 400 more
Palestinian prisoners Thursday, but
the government remained firm in
its refusal to close some Jewish
settlements in the occupied lands.
Prime Minister Yitzhak Rabin
also invited the right-wing, pro
settlement Tzomet (Crossroads)
Party to join his coalition govern
ment. But that was strongly op
posed by liberal coalition partners.
The party controls five seats in the
120-seat Knesset, where Rabin has
a one-vote margin.
The Labor Party Daily Davar
said the party’s conditions for join
ing the government included a
pledge that none of the settlements
would be uprooted.
Buses left the Ketziot prison
camp in the southern Negev desert
early Thursday and headed to the
occupied Gaza Strip and West Bank,
where the prisoners will be dropped
off and make their way home, mil
itary sources said.
The release brings to 1,000 the
number of Palestinians freed this
week. The measure was among steps
the government took to bring the
PLOback to peace talks, suspended
after last week’s massacre in a
Hebron mosque.
Israel says 8,200 Palestinians
remain behind bars. Palestinians
say there are 10,000 to 12,000.
Six days after the mosque mas
sacre, the occupied lands still
seethed. At least 64 Arabs were
wounded Wednesday, including
Sacb Erakat, head of the PLO’s
negotiating team, who suffered a
leg injury in Jericho.
At least 66 people, all but three
of them Arabs, have died in unrest
in the occupied territories since
Friday. At least 39 of them were
killed by the Jewish settler who
opened fire on worshippers in the
Hebron mosque, according to an
Associated Press count. The others
Israel disarms some
settlers, clash with
Palestinians
Israel began disarming extremist Jewish
settlers today and warned others to stay j
out of Palestinian areas in the latest effort j
to reduce tension following the massacre I
in a Hebron mosque, j-L
died in violence the attack has un
leashed. More than 400people have
been wounded.
Rabin appealed to the PLO to
resume negotiations aimed at im
plementing Palestinian self-rule in
Jericho and the Gaza Strip.
But the prime minister insisted
that Israel would not change the
Sept. 13 accord, which postpones
the settlements issue for two years
after the autonomy agreement takes
effect.
Israeli security forces did dis
AP
arm 18 extremist Jewish settlers
Wednesday and banned them from
Palestinian areas.
The settlers’ leaders Thursday
called on settlers to resist being
disarmed, saying they need guns to
defend themselves.
Disarming a few extremist set
tlers was a radical move for the
Israelis, though unlikely to placate
Palestinians demanding the remov
al of Jewish settlements from the
territories and international pro
tection.
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4TO-7301
Audit reveals contractors
racked up illegal charges
WASHINGTON — Taxpayers in
the past three years paid defense con
tractors for trips to Hawaii, yacht par
ties, Boston Red Sox tickets, bar tabs
and running shoes, congressional in
vestigators reported Thursday.
Two audits of seven defense con
tractors by the General Accounting
Office turned up $4.9 million in ille
gal or questionable charges. That
amount was in addition to $4.4 mil
lion in charges that the Pentagon’s
own contract watchdog agency had
rejected.
“No, this is not Donald Trump’s
Visa bill,” Sen. Jim Sasser, D-Tenn.,
chairman of the Senate Budget Com
mittee, said in a hearing Thursday.
“It’s the tab the American taxpayers
are picking up for what defense con
tractors euphemistically call ‘over
head.’”
Sasser said neither the companies
involved nor the Defense Department
were unique in this regard.
“The point is that this abuse is
happening all over government,” he
said.
In fact, previous audits of major
defense firms turned up numerous
instances of contract money used for
country club memberships, yachts and
gifts.
The first audit report by the GAO,
Congress’ investigative arm, exam
ined expenses submitted by six small
defense contractors.
The study found $2 million in ille
gal or questionable expenses in addi
tion to $1 million rooted out by Penta
- ii
No, this is not Donald
Trump’s Visa bill. It’s
the tab the American
taxpayers are picking
up for what defense
contractors
euphemistically call
overhead.
— Sasser
Chairman of Senate Budget
Committee
-ft -
gon contract auditors.
The second GAO study, also re
quested by Sasser, examined E-Sys
tems Inc. of Dallas, a top defense
electronics firm.
Here, auditors identified $2.9 mil
lion in illegal or questionable charges
in addition to $3.4 million uncovered
earlier by the Pentagon.
Among other things, the GAO said
E-Systems improperly billed the Pen
tagon $1.9 million in costs associated
with a merger. The company also
violated a federal plea agreement and
sought reimbursement of $4,200 in
court costs associated with the Justice
Department’s prosecution of four
employees, it said.
E-Systems spokesman John Kuinpf
declined to comment on the GAO
report.
WASHINGTON — The United
States agreed Thursday to resume
high-level talks with North Korea and
to suspend military exercises with
South Korea.
The announcement followed the
start earl ier in the day of international
nuclear inspections in the North and
talks at the border between North and
South Korea.
A State Department official said a
third round of U.S.-North Korea talks
will begin in Geneva, Switzerland, on
March 21, and the training exercises
would be suspended for this year only.
South Korea announced suspen
sion of the exercises before the release
of a State Department statement that
said the decision “will not weaken our
joint capabilities.” North Korea had
viewed the exercises as preparation
for war.
Both steps depend on the success of
the inspections that began Thursday
at seven North Korean nuclear sites
and on the exchange of special envoys
between North and South Korea, said
Undersecretary of State Lynn Davis,
who informed Congress of the mea
sures at a hearing.
WASHINGTON — The United
States agreed Thursday to resume
high-level talks with North Korea and
to suspend military exercises with
South Korea.
The announcement followed the
start earlier in the day of international
nuclear inspections in the North and
talks at the border between North and
South Korea.
A State Department official said a
third round of U.S.-North Korea talks
will begin in Geneva, Switzerland, on
March 21, and the training exercises
would be suspended for this year only.
South Korea announced suspen
sion of the exercises before the release
of a State Department statement that
said the decision “will not weaken our
joint capabilities.” North Korea had
viewed the exercises as preparation
for war.
Both steps depend on the success of
the inspections that began Thursday
at seven North Korean nuclear sites
and on the exchange of special envoys
between North and South Korea, said
Undersecretary of State Lynn Davis,
who informed Congress of the mea
sures at a hearing.
And Winston Lord, assistant sec
retary of state for Asian affairs, said at
a briefing that the status of the mili
tary exercise depends upon “success
ful completion of the inspections and
exchange of envoys between the North
and South.”
Sens. Charles Robb, D-Va., and
Frank Murkowski, R-Alaska, both
criticized the diplomatic steps.
Robb said he found it “personally
disquieting” that the United States
had given in with such minimal com
pliance.
Murkowski said administration
officials should have waited for agree
ment to inspect two other critical nu
clear waste sites.
Davis said North Korea understands
that concrete steps will be necessary
for improved relations. The U.S. goal,
she said, is to create a nuclear-free
Korean peninsula.
Talks between North and South
Korea in the border village ol
Panmunjom ended their first day
Thursday without any report of
progress, but Davis noted that the
talks are to resume next week.