[Congressional Record Volume 149, Number 143 (Tuesday, October 14, 2003)]
[Senate]
[Page S12486]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         CURRENCY MANIPULATION

  Mr. DASCHLE. Madam President, there is another issue I wish to 
mention. It has to do with a requirement by law that the administration 
issue a report on currency manipulation by October 15. That is the law. 
There is a requirement passed by the Congress, signed by the President, 
that the administration needs to provide a clear understanding of the 
circumstances, especially involving China and Japan.
  We have good reason to believe there is dramatic currency 
manipulation underway in those two countries; perhaps as much as 40 
percent of the current strength of the Chinese yuan can be directly 
attributed to currency manipulation.
  When we passed the law, we said the Congress needed, first, to 
receive the report from the administration and, second, that the 
administration needed to lay out its specific plan for dealing, 
confronting, and effecting ultimately this manipulation so that the 
extraordinary impact it is having on our trade balances and, therefore, 
on our economy could be dealt with.
  We currently have a $103 billion trade deficit with China and a $70 
billion trade deficit with Japan. We have lost over 2.5 million 
manufacturing jobs just in 3 years. A lot of those jobs are going 
directly to China and Japan, to places in Asia.
  The hardest hit industries in the last 2\1/2\ years include 67,000 
jobs lost in the plastics industry, 15,000 jobs lost in machine tool 
manufacturing, 21,000 jobs lost in tool and die manufacturing, 100,000 
jobs lost in furniture manufacturing, and 139,000 jobs lost in the 
textile manufacturing industries.
  What we are suggesting is that, first, the administration do what the 
law requires. I come to the floor this morning very concerned with the 
reports I have heard that the administration has no intention of 
releasing its report on time; that there will not be the report 
required by law that they will provide us with as clear an 
understanding of the circumstances involving currency manipulation as 
they can.
  We also ask, not only do they offer the report, do they present the 
report to the Congress, but that they do what the law also requires, 
which is to enter into formal negotiations with all of those countries 
for which we are concerned as it relates to currency manipulation.
  Finally, we also propose that they pursue a section 301 trade law 
investigation to set the stage for WTO and further action by the WTO in 
these cases, unless first we report and, secondly, provide specific and 
direct bilateral action and then pursue the laws as they are affected 
in this 301 matter.
  There is no way we can begin addressing the very serious problems we 
have with regard to the manufacturing and service industry job loss we 
have experienced now in the last 2\1/2\ years. October 15 is upon us. 
The report needs to be provided, and I hope the administration will 
follow the law and do what the law requires and give us the report and 
allow us to work with them to enter into formal investigations at the 
earliest possible date.

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