[Congressional Record Volume 143, Number 105 (Wednesday, July 23, 1997)]
[Extensions of Remarks]
[Page E1484]
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. JIM McDERMOTT

                             of washington

                    in the house of representatives

                         Tuesday, July 22, 1997

  Mr. McDERMOTT. Mr. Speaker, I rise in strong support of House 
Resolution 191. I am deeply concerned that the European Union might 
vote tomorrow to disapprove the Boeing-McDonnell Douglas merger and 
impose a multi-billion dollar fine on the Boeing company--a fine that 
would effectively shut Boeing out of the European market because it 
would be levied on payments to Boeing by European airlines.
  In my view, Boeing has made numerous reasonable efforts to not only 
convince the European Commission that the merger is not anti-
competitive, but also offered several options that should ease European 
concerns. Yet despite these efforts, the Commission has responded with 
extreme demands--including the transfer of patented technology and 
cancellation of existing sales contracts.
  It would be unfortunate for the EU to use this proposed merger, as an 
attempt to improve Airbus's competitive position at Boeing's expense. 
If the Commission continues its obstructive course, the likely impact 
of a failed merger would result in the bankruptcy of McDonnell Douglas, 
the loss of 14,000 high-technology jobs in Southern California, and the 
substantial devaluation of assets for those airlines that have 
McDonnell Douglas aircraft in their fleet.
  Hopefully this scenario can be averted. With the passage of this 
resolution as well as the continued pressure by the Clinton 
administration, I am confident we can reach a favorable conclusion to 
this unfortunate trade dispute.

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