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〃They're not；〃 Ron said。 〃As far as they're concerned； they're getting a bargain。〃
〃Why〃
〃Because；〃 Ron said； 〃if you own the machines that are used to make something； like puter chips； you own the downstream industries that depend on those machines。 MicroCon will give them control over the American puter industry。 And as usual； we're allowing it to happen。 Just the way we lost our television industry； and our machine…tool industry。〃
〃What happened to the TV industry？〃 I said。
He glanced at his watch。 〃After World War II； America was the world's leading manufacturer of televisions。 Twenty…seven American panies like Zenith； RCA； GE； and Emerson had a solid technological lead over foreign manufacturers。 American panies were successful around the world； except in Japan。 They couldn't penetrate the closed Japanese market。 They were told if they wanted to sell in Japan； they had to license their technology to Japanese panies。 And they did； reluctantly； under pressure from the American government； which wanted to keep Japan as a friendly ally against Russia。 Okay？〃
〃Okay 。 。 。〃
〃Now； licensing is a bad idea。 It means Japan gets our technology for their own use； and we lose Japan as an export market。 Pretty soon Japan begins to make cheap black…and…white TVs and exports them to America … something we can't do in Japan； right？ By 1972； sixty percent of American black…and…white sales are imports。 By 1976； one hundred percent are imports。 We've lost the black…and…white market。 American workers don't make those sets any more。 Those jobs are gone from America。
〃We say it doesn't matter： our panies have moved on to color。 But the Japanese government starts an intensive program to develop a color…television industry。 Once again； Japan licenses American technology； refines it in their protected markets； and floods us with exports。 Once again； exports drive out American panies。 Exactly the same story。 By 1980 only three American panies still make color TVs。 By 1987； there's only one； Zenith。〃
〃But Japanese sets were better and cheaper；〃 I said。
〃They may have been better；〃 Ron said； 〃but they were only cheaper because they were sold below production cost； to wipe out American petitors。 That's called dumping。 It's illegal under both American and international law。〃
〃Then why didn't we stop it？〃
〃Good question。 Especially since dumping was only one of many illegal Japanese marketing techniques。 They also fixed prices： they had something called the Tenth…Day Group。 Japanese managers met every ten days in a Tokyo hotel to set prices in America。 We protested； but the meetings continued。 They also pushed distribution of their products by collusive arrangements。 The Japanese allegedly paid millions in kickbacks to American distributors like Sears。 They engaged in massive customs fraud。 And they destroyed the American industry； which could not pete。
〃Of course； our panies protested； and sued for relief … there were dozens of cases of dumping； fraud； and antitrust brought against Japanese panies in federal court。 Dumping cases are usually resolved within a year。 But our government provided no help … and the Japanese are skilled foot…draggers。 They paid American lobbyists millions to plead their case。 By the time the suits came to trial twelve years later； the battle was over in the marketplace。 And of course all during this time； American panies could never fight back in Japan。 They couldn't even get a foot in the door in Japan。〃
〃You're saying the Japanese took over the television industry illegally？〃
Ron shrugged。 〃They couldn't have done it without our help；〃 he said。 〃Our government was coddling Japan； which they saw as a tiny emerging country。 And American industry was perceived as not needing government help。 There's always been a strain of antibusiness sentiment in America。 But our government never seemed to realize； it's just not the same here。 When Sony develops the Walkman； we don't say； 'Nice product。 Now you have to license it to GE and sell it through an American pany。' If they seek distribution； we don't tell them； 'I'm sorry； but American stores all have preexisting arrangements with American suppliers。 You'll have to distribute through an American pany here。' If they seek patents； we don't say； 'Patents take eight years to be awarded； during which time your application will be publicly available so that our panies can read what you've invented and copy it free of charge； so that by the time we issue a patent our panies will already have their own version of your technology。'
〃We don't do any of those things。 Japan does all of them。 Their markets are closed。 Our markets are wide open。 It's not a level playing field。 In fact； it's not a playing field at all。 It's a one…way street。
〃And by now we have a defeatist business climate in this country。 American panies got their asses handed to them in black…and…white television。 They got their asses handed to them in color television。 The U。S。 government refused to help our panies fight illegal Japanese trade practices。 So when Ampex invented the VCR； they didn't even try to make a mercial product。 They just licensed the technology to Japan and moved on。 And pretty soon you find that American panies don't do research。 Why develop new technology if your own government is so hostile to your efforts that you won't be able to bring it to market？〃
〃But isn't American business weak and badly managed？〃
〃That's the standard line；〃 Ron said。 〃As promoted by the Japanese and their American spokesmen。 It's only with a few episodes that people ever glimpsed how outrageous the Japanese really were。 Like the Houdaille case。 You know that one？ Houdaille was a machine…tool pany that claimed its patents and licenses were being violated by panies in Japan。 A federal judge sent Houdaille's lawyer to Japan to gather evidence。 But the Japanese refused to issue him a visa。〃
〃You're kidding。〃
〃What do they care？〃 Ron said。 〃They know we'll never retaliate。 When the Houdaille case came before the Reagan administration； it did nothing。 So Houdaille got out of machine tools。 Because nobody can pete against dumped products … that's the whole point of doing it。〃
〃Don't you lose money if you dump？〃
〃For a while； yes。 But you're selling millions of units； so you can refine your production lines； and get your costs down。 A couple of years later； you really can make the products for a lower cost。 Meanwhile you've wiped out the petition and you control the market。 You see； the Japanese think strategically … they're in for the long haul； for how things will look fifty years from now。 An American pany has to show a profit every three months or the CEO and the officers will be out on the street。 But the Japanese don't care about short…term profits at all。 They want market share。 Business is like warfare to them。 Gaining ground。 Wiping out the petition。 Getting control of a market。 That's what they've been doing for the last thirty years。
〃So the Japanese dumped steel； televisions； consumer electronics； puter chips； machine tools … and nobody stopped them。 And we lost those industries。 Japanese panies and the Japanese government target specific industries； which they take over。 Industry after industry； year after year。 While we sit around and spout off about free trade。 But free trade is meaningless unless there is also fair trade。 And the Japanese don't believe in fair trade at all。 You know； there's a reason the Japanese love Reagan。 They cleaned up during his presidency。 In the name of free trade； he spread our legs real wide。〃
〃Why don't Americans understand this？〃 I said。
Connor laughed。 〃Why do they eat hamburgers？ It's the way they are； kōhai。〃
From the newsroom； a woman called； 〃Somebody named Connor here？ Call for you from the Four Seasons Hotel。〃
Connor glanced at his watch and stood up。 〃Excuse me。〃 He walked out into the newsroom。 Through the glass I saw him talking on the phone； making notes。
〃You realize；〃 Ron said； 〃it's all still going on。 Why is a Japanese camera cheaper in New York than in Tokyo？ You ship it halfway around the world； pay import duty and distribution costs； and it's still cheaper？ How is that possible？ Japanese tourists buy their own products here because they're cheaper。 Meanwhile； American products in Japan cost seventy percent more than here。 Why doesn't the American government get tough？ I don't know。 Part of the answer is up there。〃
He pointed to the monitor in his office； a distinguished…looking man was talking above a running tickertape。 The sound was turned low。 〃You see that guy？ That's David Rawlings。 Professor of business at Stanford。 Specialist in the Pacific Rim。 He's a typical … turn that up； will you？ He might be talking about MicroCon。〃
I turned the knob on the set。 I heard Rawlings say： 〃。 。 。 think American attitudes are pletely irrational。 After all； Japanese panies are providing jobs for Americans； while American panies are moving jobs offshore； taking them away from their own people。 The Japanese can't understand what the plaints are about。〃
Ron sighed。 〃Typical bullshit；〃 he said。
On the screen； Professor Rawlings was saying； 〃I think the American people are rather ungrateful for the help o