*EPF311 05/03/00
Text: Senator Baucus May 3 on Senate Resolution on Japan
(Hails May 2 resolution on Japan telecommunications) (570)

Senator Max Baucus (Democrat from Montana) hailed the May 2 passage by unanimous consent of Senate Resolution 275 calling for Japan to open its telecommunications market.

"I hope that this forceful expression by the Senate will give support to the progressive elements in Japan as they do battle with the strong forces of protection," Senator Baucus said in a May 3 press statement. "I urge President Clinton and our Trade Representative Ambassador Charlene Barshefsky to insist that Japan open its onerous regulated system."

Senate Resolution 275, the statement notes, "stresses the need for significant regulatory reform in Japan, supports USTR in vigorously pursuing this, and sends the message to Japan that the Senate is strongly behind such an effort."

Following is the text of the statement:

(begin text)

May 3, 2000

BAUCUS WELCOMES PASSAGE OF A RESOLUTION
PROMOTING DEREGULATION OF JAPAN'S
TELECOMMUNICATIONS SYSTEM

WASHINGTON, D.C. -- Senator Max Baucus welcomed passage last night by unanimous vote of a resolution urging Japan to deregulate its telecommunications sector. Cosponsored with Senator Chuck Grassley (R-Iowa), this resolution comes on the eve of a meeting between President Clinton and Japanese Prime Minister Mori.

"Intense negotiations are going on between our government and Japanese authorities, and I hope that this forceful expression by the Senate will give support to the progressive elements in Japan as they do battle with the strong forces of protection," Senator Baucus said. "I urge President Clinton and our Trade Representative Ambassador Charlene Barshefsky to insist that Japan open its onerous regulated system."

"American trade negotiators, with the full support of the Congress, have worked tirelessly to promote deregulation and openness in the Japanese telecommunications sector over the past twenty years," Senator Baucus continued. "While these efforts have led to significant change, considerable work remains."

Senator Baucus said, "Japan's use of high tech telecommunications goods and services resembles a second tier economy. For example, Japan has only 20 million Internet users, compared to 80 million in the United States; Japan hosts two million web sites, while the United States hosts over 30 million; electronic commerce in Japan is valued at less than one billion dollars, versus at least thirty times as much in the United States; and only 19 percent of Japan's schools are connected to the Internet, while in the United States 89 percent of schools are."

"Japan has a non-competitive regulatory system in telecommunications that prevents market forces from fully operating," Senator Baucus explained. "Japanese consumers are prevented from obtaining the highest quality telecommunications technology at the lowest price. They are not allowed to choose from the incredible array of services and products available around the world. And they pay higher prices than they should."

Today's Senate resolution stresses the need for significant regulatory reform in Japan, supports USTR in vigorously pursuing this, and sends the message to Japan that the Senate is strongly behind such an effort. Deregulation serves American and international business. It serves the Japanese economy. It serves the Japanese consumer. It serves Japanese industry. And it serves the regional and global economy which needs a growing Japan. In the long-run, everyone would be a winner if Japan let market forces operate.

(end text)

(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
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