*EPF302 09/05/01
Text: O'Neill Announces Trip to China and Japan
(September 5 announcement of Treasury Secretary Paul O'Neill) (720)

Secretary of the Treasury Paul O'Neill made a plea for Congress to give President Bush Trade Promotion Authority in a September 5 press conference to announce his upcoming trip to China and Japan.

During that trip, O'Neill said, he will be talking with his counterparts about "the prospects for increased price competition as a means of stimulating growth and creating jobs for Asian and US workers."

On China, Treasury Secretary O'Neill said, there has been progress toward a market economy, "as China has created special economic zones, freed prices and privatized some state-owned companies."

Acknowledging that Japan's economy "has lagged far below its growth potential," O'Neill said it is time "for decisive action, to turn the Japanese economy around."

The United States, he added, "strongly supports Prime Minister Koizumi's reforms, especially the priority he has placed on improving the health of the financial sector."

Following is the text of the September 5 Treasury's news release on the upcoming trip of Treasury Secretary Paul O'Neill to China and Japan:

(begin text)

TREASURY NEWS
FROM THE OFFICE OF PUBLIC AFFAIRS
FOR IMMEDIATE RELEASE

September 5, 2001
PO-589

STATEMENT OF SECRETARY PAUL O'NEILL
ON HIS UPCOMING TRIP TO CHINA AND JAPAN

Good morning. I'm leaving today on an important trip to China and Japan -- at a crucial time for the citizens of Asia and the citizens of the United States.

As our economy has slowed, we've taken appropriate steps in monetary and fiscal policy to rekindle growth. The President's tax cut will inject $40 billion into the economy in this quarter alone. Analysts have projected that the tax cut will boost growth by as much as 1 percentage point going forward. We've seen good news recently, in the NAPM report, indicating that manufacturing may be turning around already. Our economy is sound, and I look forward to a rising growth path in the months ahead and through 2002.

But it isn't enough for the US economy to be the only engine of economic growth in the world. Global growth and greater access to global markets are fundamental to world prosperity. I'll be stopping in San Francisco on my way to Asia, to meet with executives from Silicon Valley and highly regarded economic experts. US technology companies want to provide goods and services to people around the world. Over one million California jobs depend on manufacturing exports. The President is seeking Trade Promotion Authority from the Congress, so that we can open more markets to US goods and services, creating more and better-paying jobs here at home.

The challenge of global competition will spur new levels of achievement for a myriad of products and ideas we haven't even thought of today. We in the United States have always risen to that challenge, and in the process, created higher incomes and higher living standards for America's families. Passing Trade Promotion Authority through the Congress will give the President another tool to boost our long-term economic growth.

During my trip to China and Japan, I'll be talking with my counterparts about the prospects for increased price competition as a means of stimulating growth and creating jobs for Asian and US workers.

The potential for the Chinese people is enormous. Already, we've seen progress toward a market economy, as China has created special economic zones, freed prices and privatized some state-owned companies. Continued growth requires modern corporate structures and legal systems. It requires freeing up individual initiative and labor mobility. We want to offer the benefits of our own experience and support China's economic modernization.

Japan has already proven that it can be an engine for growth and innovation, but for most of the last ten years, Japan's economy has lagged far below its growth potential. It is time for decisive action, to turn the Japanese economy around. The United States strongly supports Prime Minister Koizumi's reforms, especially the priority he has placed on improving the health of the financial sector. As part of the dialogue created between our two countries, we will offer technical and other assistance to sustain the banking reform effort.

(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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