"We hope to offer suggestions from time to time that may prove helpful." Noda just sat there like a sphinx. "Perhaps I can offer an example. As you doubtless know, Senator, Japanese firms build plants overseas these days primarily to be more competitive in those foreign markets. You Americans, however, are moving your manufacturing abroad now mainly to compete with foreign goods here it home in your own market. You appear to think it as comparable, but of course it is not. What you are doing is exporting your own jobs. Your strategy is defensive, ours is offensive."
Jack looked him squarely in the eye. "Quite frankly I must tell you that not everyone in Washington these days trusts Japan's 'offensive' in international trade. I for one would be very interested in knowing exactly why Japan has chosen to invest billions of dollars in keeping America's manufacturing alive. Particularly when so much of it is competitive with your own."
"Yes, Senator, I realize you Americans prize frankness." He wasn't giving an inch. "Very well. Quite honestly, no one in Japan believes it is in the interest of the Free World to allow your industrial base to continue its current decline. Our economic condition is linked to yours, like the vital organs of Siamese twins. We cannot afford to let you atrophy. For one thing, you are our only defense shield, since we have none of our own. I might also add, though it is a comparatively lesser concern, you are Japan's primary customer."
"So what you're proposing—if you'll permit me to paraphrase—is to take certain of our strategic industries, the ones in trouble, by the neck and institute the management, investment, and research necessary to keep them competitive."
Noda just smiled. "Dai Nippon expects to offer occasional
advice in the spirit of friendly cooperation. Which is why," he went on, "I am so happy to have this opportunity to review our program with someone such as yourself. Your understanding of America's industrial malaise has not gone unnoticed by those Japanese who take the longer view, who worry about world economic stability."
Jack tugged at his silk tie and nodded his thanks. Then Noda continued.
"You will be pleased to know I have been in contact with the Japanese trade organizations that have political action committees, or PACs as you call them, in Washington. Last year we distributed over fifty million dollars . . . at least if you believe the Senate Foreign Relations Committee's staffers . . . in an effort to clarify misunderstandings about Japan's trade and investment position here." He smiled. "That averages out to about a million dollars per state, to take a somewhat clinical view. Of course I will try to use my influence to see what our PACs can do to help you next fall."
"Mr. Noda, your expression of support is, naturally, appreciated." Jack was turning politician again. "However, you should be aware of Section 441(e) of the Federal Election Campaign Act, which states that 'no foreign national shall make a contribution, or an implied promise to make a contribution, in connection with any federal public office.' I don't think this discussion is proper."
"That law says nothing about PACs of duly incorporated American subsidiaries of foreign-owned organizations, Senator. For example, Sony of America and a coalition of Japanese investors recently contributed hundreds of thousands to legislators of Florida and California to encourage the defeat of those states' unfair unitary taxes on foreign-owned companies. Sometimes it's necessary to remind your federal and state governments that Japanese investment can be very problematical in an uncongenial environment." He smiled. "Americans investing overseas have a long history of making their interests known to those governments; why should Japanese businessmen be expected to do otherwise?" All of a sudden Noda glanced at his watch, rose abruptly, and bowed. "Well, the afternoon seems to have gotten away from us. I wish you to know I am extremely honored you've taken time from your undoubtedly busy schedule to visit with us, Senator. It has been most pleasant."