[Weekly Compilation of Presidential Documents Volume 35, Number 45 (Monday, November 15, 1999)]
[Pages 2321-2323]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks in a Roundtable Discussion With Harley-Davidson Employees in 
York, Pennsylvania

November 10, 1999

    The President.  Let me just say first, I have had a great tour. I'm 
glad to be here. Thanks for the jacket. But thanks, most of all, for 
your wonderful job you do. And I'd like to just have some opening 
remarks from Jeff and Harry, and then maybe we'll do a little roundtable 
discussion.
    As you know, as I said, I'm interested in two things today. One is, 
how has Harley done it; what are the major elements in your success at 
home and around the world? And secondly, how important is the global 
market to the profitability and long-term success of your company?

[At this point, the roundtable discussion continued.]

    The President. Several years ago, you were subject to unfair 
competition in the American market, and it took some action to get that 
straightened out. But one of the reasons that I wanted to have this new 
trade meeting that we're going to have next month in Seattle--we're 
going to try to launch a new round of trade negotiations, and the main 
purpose, from our point of view, is lowering tariffs to American 
products, because there's a lot more, not just yours but a lot of other 
products where, even though we have a very successful economy and 
relatively high wages compared to most other countries, we are quite 
competitive in a whole range of areas if we can get these tariffs down. 
I think it's very important.

[The roundtable discussion continued.]

    The President. You know, it's very interesting, I have tried to get 
the White House and the Government to operate more like you just 
described, and one of the real problems of doing it in politics is that 
if you make a mistake, it's big news. And if you don't, it's kind of 
like the dog that doesn't bark. I mean, it's not like--if you don't make 
a mistake, you sell a lot of motorcycles; the bottom line goes up. 
Sometimes if we don't make a mistake, you get your Social Security 
check.
    And it's become--one of the things that Vice President Gore really 
tried to do with our reinventing Government initiative is to get 
decisions made more quickly by people that are closer to the decision 
point. And we tried to run the White House as a team and have people not 
be scared of their shadow when they come to work, to go ahead and make a 
decision and do things at work.
    But it's very interesting to see what the problem in Government is, 
which is that--and I'm not blaming anybody and certainly not our friends 
in the press who are here covering this event--but it is--the pressures 
are great not to mess up, so that tends to set up systems that are too 
top-down, too rule-oriented. And we really tried to change that. And 
we've had pretty good success, I think.
    But you've got to be willing--if you trust people to make decisions, 
you've got to be willing to make a mistake, because managers make 
mistakes, so workers are going to make mistakes. Everybody makes 
mistakes. I'd be curious to know how you handle that, how you deal with 
the inevitable occasional error.

[The roundtable discussion continued.]

    The President. One of the things that will inevitably happen, and we 
deal with this in every trade negotiation, is you have more and more 
trade; you have to move toward greater uniformity; you have to respect 
other countries, their determination about what's safe and what's good. 
Sometimes a lot of these

[[Page 2322]]

standards are also a ruse to promote protectionism, and we've had a lot 
of problems with that, too, in addition to tariffs. We've had standards 
that--we used to have laughable standards with the Japanese, I remember, 
on things like importing skis and whether the skis were a quarter of an 
inch too wide or too narrow. So these things happen, and the only way 
you can change them is to enter into and do a negotiation and just keep 
trying to push through, push through. And then if the rules aren't 
followed once you've set up rules, as Tom pointed out, there have to be 
some consequences to them.

[The roundtable discussion continued.]

    The President. That's a very important point. If people overseas 
aren't making any money, they can't buy whatever it is we're selling. 
But we have done that; the United States has maintained the most open 
market in the world. We've been fortunate enough to have low 
unemployment and low inflation for a long time, so it has benefited us 
as a whole. But it still puts enormous pressure on certain higher wage 
workers that are very competitive in a global economy if they have free 
access to markets.
    So it's this constant balancing act for me, how to protect the 
overall health of the economy and still make sure that no sector is 
getting the shaft. But we do have an interest in other people making 
money. We ought to want our friends around the world to do well. That's 
the only way that we can--we have 4 percent of the world's people and 22 
percent of the world's income. So you don't have to be an Einstein at 
math to figure out you've got to sell something to the other 96 percent, 
and they can only buy what they can afford to buy.
    So to me, that's the ultimate logic of trade. But it's a constant 
fight to make sure the rules are fair.

[The roundtable discussion continued.]

    The President. As I said, one of the major purposes of this new 
trade round we hope to start in Seattle next month is to get a 
comprehensive review of all the problems that are still out there and 
try to take them down. And I hope we can do it. I guess I ought to say 
this. In the first 5 years of my Presidency, through 1997, 4\1/2\ years, 
30 percent of our growth came from expanded trade. Then since--in '98 
and the first half of '99, a higher percentage has come generated from 
domestic economic growth because of the Asian financial--but as they 
come back, it will be 30 percent or more, particularly if the European 
economy grows and they're relatively open to our products and services. 
We'll do even better than 30 percent, starting in, I'd say, 2 years from 
now.

[The roundtable discussion continued.]

    The President. We've just been learning how these great motorcycles 
are made and the teamwork between management and labor here and also how 
they're sold not only in the United States but around the world. And 
their message is that if they have fair access to markets, they can sell 
them everywhere. And I believe they can--and that the partnership and 
the trust that exists between the people who work here and the 
management is a major reason for the absolutely stunning success that 
this country has enjoyed in the last several years.

[The roundtable discussion continued.]

    Mr. Harry Smith. I want to thank you also, Mr. President. I think 
you treated labor very fairly over the years, and I think you've done 
one hell of a job. And we thank you for coming.
    The President. I'm not done yet. But when I am, I'm going to get on 
one of those motorcycles. [Laughter] Most Presidents get on Air Force 
One and ride off into the sunset. Maybe I'll just get on a Harley and 
ride off into the sunset. [Laughter]
    Mr. Jeffrey Bleustein. You can get on Hog One. We'll make one of 
those. [Laughter]
    Q. Mr. President, can you tell us why you think education and 
teachers are becoming the showdown issue on the budget this year?
    The President. I don't know why, except that I have very strong 
feelings about it. And the Congress changed its position from last year 
to this year--the Republican majority in Congress changed its position. 
We had an agreement last year. And there is something to the argument, 
well, if schools already have small class sizes, they should be able to 
use

[[Page 2323]]

the money on other things, but we have agreed to that. I just don't 
believe we ought to give a block grant out there when we know we've got 
the largest school population in history, the most diverse in history, 
and the kids who have small classes have permanent learning gains. We've 
got all this research that shows that. We made a commitment last year; I 
think we ought to keep our commitment. And I think we're getting closer. 
It may or may not be the last unresolved issue by the close of business 
today. But we're working at it.

[The roundtable discussion continued.]

    The President. The people who are here like working here. I shook 
hands with a lot of the workers here today. They like it. They're proud 
of it. And all they want is a fair chance to sell their products. And I 
told them that when we meet in Seattle in this meeting of the World 
Trade Organization, what our goal is to open a new trade round that will 
reduce the tariffs and the non-tariff barriers to American products and 
services and, in return, make sure that people have continued access to 
our markets.
    But these people here and your company prove, and so many others 
prove that if we have open and fair trade, the United States can compete 
with anybody. And it's the only way we can continue to grow our economy 
at a rapid rate, and at the same time help the rest of the world do 
well.

[The roundtable discussion continued.]

    The President. First of all, I want to thank you for being here 
together and for working together and for making America number one in 
telecommunications in so many, many ways. And I want to thank all the 
people at all the other sites for their support for America's role in 
the global economy and for expanding the opportunities for trade.
    We're going to be working hard for it. I think we need to work hard 
to keep trying to build a consensus in our own country for the expansion 
of trade and for policies that will support benefits to all Americans 
who are out there working every day and deserve to be a part of this 
global economy. And we'll keep working on it. And I thank you very much.
    And I'd be curious, before we close, to know, do you sell Harleys 
over the Internet? And can I order one over the Internet? If not, 
Armstrong will provide at a very reasonable price a comprehensive way to 
do that. [Laughter]

Note: The roundtable began at 11:55 a.m. in the Conference Room at the 
Harley-Davidson Motor Co. plant. In his remarks, the President referred 
to Jeffrey Bleustein, chief executive officer, Harley-Davidson Motor 
Co.; Harry Smith, president, Local 175, International Union of 
Machinists; Thomas Buffenbarger, international president, International 
Association of Machinists and Aerospace Workers; and C. Michael 
Armstrong, chief executive officer, AT&T and chairman, President's 
Export Council, who led the final portion of the roundtable discussion 
via satellite teleconference to a trade dialogue with AT&T employees in 
Basking Ridge, New Jersey, as part of the National Dialogue on Trade. A 
tape was not available for verification of the content of these remarks.