[Congressional Record Volume 143, Number 105 (Wednesday, July 23, 1997)]
[Extensions of Remarks]
[Page E1483]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 REGARDING INTERFERENCE OF EUROPEAN COMMISSION IN MERGER OF BOEING CO. 
                         AND McDONNELL DOUGLAS

                                 ______
                                 

                               speech of

                            HON. JANE HARMAN

                             of california

                    in the house of representatives

                         Tuesday, July 22, 1997

  Ms. HARMAN. Mr. Speaker, I rise to express deep concern about the 
future of American aerospace industry in light of the European Union's 
inappropriate and unfounded reaction to the Boeing-McDonnell Douglas 
merger.
  The EU threatens to interfere with this merger on the grounds that it 
impinges on fair trade. They have stated their intent to do this even 
after Boeing offered numerous concessions, including modification of 
exclusive purchasing arrangements with several American carriers.
  There are persistent rumors that the EU is demanding other 
concessions as well, including closing of aircraft plants and requiring 
Boeing to put McDonnell Douglas' commercial segment on the market. 
Giving in to such conditions could cost thousands of U.S. jobs--many of 
them in southern California--adversely affect the efficiency of the 
industry, and set a disastrous precedent.
  Free and fair trade is a cornerstone of our relations with Europe, 
but the EU's threatened actions contribute little to either and we 
ought to resist them. Their demands in this case are clearly 
unreasonable and an infringement upon U.S. sovereignty.
  This merger will not result in unfair trade practices as the EU 
contends. McDonnell Douglas' commercial aviation accounts for only 4 
percent of the global market. In fact, the Federal Trade Commission's 
review of the merger determined that McDonnell Douglas was not a factor 
in the commercial aviation market.
  The likelihood that this merger will somehow limit competition is 
nonexistent. And, Boeing's offer to substantially modify its 
arrangements with American carriers seems to more than make up for any 
advantage it might theoretically gain from its acquisition of McDonnell 
Douglas.
  EU interference in the merger is unwarranted, and, if allowed to 
continue, is likely to redound with far reaching and adverse effects 
for all concerned. Therefore, I urge my colleagues to support this 
resolution, and I urge the President to deal with the EU promptly and 
resolutely and defend the rights of American business to consummate 
mergers that have been reviewed and approved by the appropriate U.S. 
Government agencies.

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