[Congressional Record Volume 143, Number 101 (Wednesday, July 16, 1997)]
[House]
[Pages H5383-H5384]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  EUROPE SHOULD NOT MEDDLE IN THE INTERNAL AFFAIRS OF U.S. BUSINESSES

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Washington [Mr. Metcalf] is recognized for 5 minutes.
  Mr. METCALF. Mr. Speaker, the objection of the European Union to the 
merger of the McDonnell Douglas and the Boeing Co. is unreasonable and 
will not be tolerated. These two wholly owned American companies intend 
to merge early next month. The review reputedly conducted by the 
European Commission was, in fact, controlled by Airbus Industries and 
its member nations. The decision by the EC is threatening the U.S.-
European relationship. If it continues, it will have damaging effects 
now and into the future.
  The stand of the European Union is unacceptable for several reasons. 
First, the parties involved are both wholly owned United States 
companies with a global customer base. Second, the objections raised by 
the European Union regarding the abandonment of exclusive contracts 
awarded to Boeing is inappropriate. Airbus Industries was an eligible 
competitor for each of the three contracts and was not awarded them 
based on the decisions by the specific companies. Airbus never objected 
to carrier requests to make contracts exclusive in return for reduced 
prices until they lost out in the contract. In fact, even the European 
Commission objected only after the agreements were concluded.
  It is inappropriate to risk United States jobs because the free 
market worked its will. In fact, the initial long-term contract from 
U.S. Airways was awarded to Airbus; that is, the initial long term 
contract was awarded to Airbus prior to these agreements. That is 
right, Airbus created the very ideas of exclusive contracts.
  The proposal by the European Union to require Boeing to divest of 
their interest in McDonnell Douglas commercial aircraft is unacceptable 
as well. The United States Federal Trade Commission conducted a 
thorough review of the proposed merger and concluded that McDonnell 
Douglas is no longer able to sell enough commercial aircraft to raise 
significant concerns about the loss of its competition. Last year 
McDonnell Douglas was responsible for only 4 percent of the global 
commercial airplane business.
  The divestiture by Boeing of the McDonnell Douglas commercial 
aircraft business would have severe ramifications worldwide. First it 
threatens Americans' jobs that are tied into the continued support of 
McDonnell Douglas aircraft by the Boeing Co. Further, McDonnell 
Douglas' commercial aviation division cannot maintain itself as an 
independent company, and previous efforts to sell the commercial 
aviation division have been unsuccessful. Therefore, any divestiture 
would threaten the safety of McDonnell Douglas commercial aircraft 
already in service if the commercial division was to close.
  The last thing this Congress should support is the divestiture of 
McDonnell Douglas' commercial aircraft because it would result in the 
loss of over 15,000 American jobs, that is 15,000 American jobs.
  Mr. Speaker, it is vital to the health of the United States to 
downsize through mergers the military industrial base as we celebrate 
the end of the cold war period and adjust military budgets accordingly. 
Because of the large defense business that will be conducted by the 
Boeing Co., any action by the European Community is an infringement on 
the sovereign rights of the United States to provide for U.S. national 
security.
  Mr. Speaker, over 80 percent of Americans agree with me that Europe 
should have no say in the internal dealings of two American companies. 
I urge every Member to contact my office and

[[Page H5384]]

sign on to a letter to the European Union clearly stating Congress' 
belief that Europe should not meddle in the internal affairs of U.S. 
businesses. Europe should have no say in American markets' decisions 
that ultimately cost American jobs and American sovereignty.

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