[Congressional Record Volume 140, Number 6 (Tuesday, February 1, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: February 1, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
               JAPAN-UNITED STATES FRIENDSHIP COMMISSION

 Mr. KERRY. Mr. President, I would like to join in a colloquy 
with the Senator from West Virginia [Mr. Rockefeller].
  Mr. ROCKEFELLER. Mr. President, I thank the Senator from 
Massachusetts for joining me in a colloquy.
  I would like to raise the issue of the Japan-United States Friendship 
Commission, an independent Federal agency established in 1975 to 
promote mutual understanding between the peoples of the United States 
and Japan. It accomplishes its mandate by making grants to institutions 
to assist them in carrying out research and exchange with Japanese 
counterparts in a broad range of activities from the arts to policy 
research. Its funds are derived entirely from the interest from the 
Japan-United States Friendship Trust Fund, established by Congress in 
the enabling legislation of 1975 (Pub. L. 94-118, as amended). The 
Commission derives no appropriation from the general revenue.
  Mr. President, each successive administration has affirmed that the 
United States' relationship with Japan is the most important bilateral 
relationship to us, ``bar none,'' as Ambassador Mansfield stated. It is 
no secret that the problems inherent in that relationship are 
commensurate with its importance. The Japan-United States Friendship 
Commission plays a two-pronged role in dealing with that relationship. 
On the one hand, it helps to provide stability to the often clamorous 
bilateral relations through programs of education for expert 
communities and the general public in the two countries on the 
contemporary realities of the other nation. On the other hand, 
increasingly, the Commission serves to stimulate the development of 
programs to train Americans to incorporate Japan-related expertise in 
their professional careers, and to provide basic research on the 
contemporary Japanese political economy that will supply purposeful 
information and knowledge to American policymakers to help them make 
more effective policy regarding Japan.
  Mr. President, there is no question that the work of the Japan-United 
States Friendship Commission is more important now than it has ever 
been before. It is even more important to realize that this Commission 
is the only source of funds dedicated to support of these activities 
that Americans can use freely without fear of carrying out, 
unconsciously or aware, the aims and agendas of self-interested 
institutions and organizations. To carry out its mandate, the 
Commission requires as strong a financial base as it can secure, but 
unfortunately, the exact opposite is true. The Commission now faces an 
annual income worth only a quarter of the financial power Congress 
intended it to have. In part, this situation arises from the 
Commission's former policy of the 1980's to drawdown on its principal. 
Encouraged in this policy in the 1980's, the Commission subsequently 
reversed it in 1990. Nonetheless, the effect of lower principal is now 
compounded with two other factors--the historically low rates of return 
on the Commission investments in Treasury Department instruments, in 
which it must invest by law, and most importantly, inflation. Mr. 
President, I contend that Congress did not intend that the ability of 
the Commission to meet its statutory powers should be curtailed by the 
impact of these factors on its annual earnings.

  Mr. President, in the first session of the 103d Congress I introduced 
S. 768 together with Senator Murkowski to allow for consideration of 
recapitalizing the Commission to help it meet its responsibilities. I 
would like to point out here the continued importance of this effort, 
and also of the advantage of addressing the national need by 
recapitalizing this Commission. As the Commission's funds are placed in 
a U.S. Government endowment, they should not be considered expenditure 
and thus would be scored as zero outlay. At the same time, such an 
investment would help meet the new national priorities announced for 
the fiscal year 1995 budget, in investing government funds in the 
promotion of research and development, which includes programs of 
education and training. Mr. President, there is no education and 
training more important for our young people than the ability to keep 
American enterprises competitive in the new interdependent global 
economy. Training on Japan is central to this effort. Therefore, I 
would propose that funds designated specifically for this effort under 
Budget Function 500 be devoted in part to the recapitalization of the 
Commission by transferring them to Budget Function 150 for this 
purpose, thus relieving the Congress of the need to find new funds.
  Mr. President, I also think it is important to establish that 
Congress might wish to begin the effort of recapitalizing the 
Commission by designating it for reprogramable funds in Foreign 
Relations, thus meeting the objectives of American foreign policy and 
domestic revival through this single means.
  Mr. KERRY. I share the view of the gentleman from West Virginia that 
the work of the Japan-United States Friendship Commission is vital to 
the long-term stability of our bilateral relationship with Japan and 
provides it with the balance necessary to counter the short-term crises 
that constantly assail it. This, of course, is not to say that there 
are not any real problems in that relationship, but only that we must 
address those problems within an acknowledgment of the value and long-
term importance to the United States of the United States-Japan 
relationship. I also share the gentleman's view that the work of the 
Commission to help develop the capacity in the United States to deal 
effectively with Japan and compete with it where competition dictates 
is critical. I agree that Congress did to intend to allow the work of 
the Commission to be impeded by financial conditions beyond its 
control.
  Mr. President, it would be my intent to revisit this issue at an 
appropriate time, not too distant in the future, to move to seek fresh 
funds for the Japan-United States Friendship Trust Fund. The idea has 
merit, and we want to make certain that the appropriate parties in the 
Congress and the administration are giving it careful thought and 
study. I hope I can report shortly to my friend from West Virginia that 
this idea can be given concrete expression.

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