Paul Sarbanes

Mr. SARBANES

Mr. SARBANES. I ask the Senator from North Dakota, in fact, what has happened to the U.S. trade balance is a marked deterioration in our position in the post-World War II period. In other words, beginning after World War II, we ran a modest trade surplus year in and year out, and beginning in the mid-1970s and continuing thereafter, as the Senator indicates on his chart and indicated on this chart, we have been running these very large negative trade balances, sometimes as much as $150 billion, $180 billion in a single year. The consequence of running these trade balances year in and year out cumulatively is about $1.5 trillion. The result of that is a deterioration in the U.S. position from being a creditor nation to now we are a debtor nation.

Mr. SARBANES. So what we are doing here with the fast track is denying the normal process?

Mr. SARBANES. Will the Senator yield?

Mr. SARBANES. Of course, when we go into the international environmental conferences, they say, ``You are the biggest offender,'' because we are the most highly developed country and, therefore, we are put on the defensive in trying to get an agreement on the environmental standards. We are the most highly developed country, which is why in the trade negotiations they are so anxious to come into the American market, but we leave out of the trade negotiations the environmental issues. It just doesn't make sense. It is diminishing our ability, it seems to me, to negotiate comprehensive, fair trading arrangements that do not place our own producers at a significant disadvantage and do not create a downward pressure and downward movement with respect to protecting and enhancing the environment.

Mr. SARBANES

Mr. SARBANES. Mr. President, on October 23, 1997, President Clinton convened the first ever White House Conference on Child Care. This important summit examined one of the most critical issues facing American families today, the need for safe, affordable, quality child care. I rise today to commend the President for working to focus public attention on this very important matter, and to urge the Senate to move quickly to address the critical issues facing us with regard to our children's future. Mr. President, it has long been my view that our children are our greatest national resource and must number among our country's highest priorities. Nationwide, nearly 10 million preschool children spend a part of their day in child care, and there are many more school-age children who spend portions of their afternoons under the supervision of someone other than a parent when the school day ends. These children need care that will enable them to learn and grow, while keeping them safe, healthy, and happy. There can be no disagreement that high quality child care and early childhood development services are absolutely essential to the well- being of our children and our families. In fact, recent research findings in early brain development indicate that much of children's growth and future emotional health is determined by early learning and care. This research emphasizes the urgent need for well-trained reliable child care-givers for even the youngest of children, and underscores the importance of continued Federal support for child care programs. Whether these programs are called child care, early childhood development, or early childhood education they all must provide the nurturing and stimulation children need to develop fully, to enter school ready to learn, and to grow into capable and responsible adults. While quality of care is the most important consideration for parents choosing a child care provider for their families, many parents must take into consideration the high cost of child care in this country. According to the 1995 Census, middle class families earning approximately $36,000 a year spend 12 percent of their annual income in child care expenses, and families earning $15,000 or less a year pay approximately 25 percent of their household income on care for their children. For these parents child care is an enormous financial burden. In my own State of Maryland, many parents are struggling to hold jobs and at the same time provide quality care for their children. While the State of Maryland is a leader in day care financing, in 1994, there were approximately 4,000 children on the waiting list for child care assistance. Many of these children's parents must daily live with the fear that their child care situation is inadequate or that their carefully patched together child care arrangements will fall apart. We can--and we must--do better. The Federal Government has a crucial responsibility to support and protect society's youngest members. As a nation we must work to empower low-income parents so that they may meet their children's needs by providing access to affordable, quality child care. As a member of the Senate, I have co-sponsored previous legislation to address these pressing issues including the Act for Better Child Care Services which led to the authorization of the Child Care and Development Block Grant, and I have continued to work with my colleagues to ensure that Federal investments in the care and development of young children yield concrete results. The White House Child Care Conference has provided us with a strong foundation on which to build and expand our Nation's child care programs, and has already begun to yield tangible results. Proposals resulting from the White House conference include the creation of a national child care provider scholarship fund to improve training, education, and compensation for child care providers, and a National Crime Prevention and Privacy Compact to increase the efficiency and effectiveness of background checks on child care providers. These proposals are useful first steps to bolster Federal child care programs, and to address issues of quality, accessibility, and affordability of reliable child care. Mr. President, it is imperative to remember that children represent the future of this Nation. Unless we provide those generations to come with the knowledge and skills needed to function successfully in an increasingly complex world, we not only imperil the futures of our children--we imperil the future of our Nation. We must continue to invest in the future of our children by renewing our commitment to quality child care, and I urge my colleagues to join me in this effort.

Mr. SARBANES

Mr. SARBANES. I rise today to offer legislation which would establish the Thurgood Marshall Legal Educational Opportunity Program. This program would allow the Department of Education to award grants to universities to provide assistance to low-income, minority or economically disadvantaged students who are seeking a legal education. For more than 28 years, such assistance was provided through appropriations authorized by the Higher Education Act [HEA] of 1965. These critical funds were channeled through the Council on Legal Education Opportunity [CLEO] and were used to help qualified disadvantaged students gain admission to law school and prepare themselves for their legal education. Since 1968, the heart of the CLEO program has been the 6-week pre-law summer institute. These institutes, held on law school campuses across the country, simulate the classroom setting of first year law school, exposing students to the rigors of legal study. Utilizing full-time law school professors and a proven curriculum that emphasizes critical thinking, legal analysis and writing skills, CLEO has built a reputation of credibility and has produced more than 6,000 successful alumni from more than 170 law schools. Unfortunately, Federal funding for CLEO was eliminated during the fiscal year 1996 appropriations process. This highly beneficial and cost-effective program has persevered primarily through the assistance of private donations and the sponsorship of the American Bar Association [ABA]. The bill I am introducing today, a companion to Congressman Cummings' legislation in the House, would restore much of the CLEO framework. The Thurgood Marshall Legal Opportunity Program would identify socially and economically disadvantaged law school students and provide them with the opportunity to hone their skills through summer institutes, midyear seminars and support services. Mr. President, every society places a premium on education in terms of developing a skilled and trained work force in the next generation, and the more economically complex the world becomes, the more urgent it is to develop these human resources. This program will provide the necessary resources to ensure that those who have proven themselves at the undergraduate level of study are able to maximize their potential as they move on to law school. Investing in the promise of these talented individuals is a worthwhile endeavor and I encourage my colleagues to join me in supporting this legislation. I ask unanimous consent that the text of the bill be printed in the Record.

Mr. SARBANES

Mr. SARBANES. I rise today to offer legislation which would establish the Thurgood Marshall Legal Educational Opportunity Program. This program would allow the Department of Education to award grants to universities to provide assistance to low-income, minority or economically disadvantaged students who are seeking a legal education. For more than 28 years, such assistance was provided through appropriations authorized by the Higher Education Act [HEA] of 1965. These critical funds were channeled through the Council on Legal Education Opportunity [CLEO] and were used to help qualified disadvantaged students gain admission to law school and prepare themselves for their legal education. Since 1968, the heart of the CLEO program has been the 6-week pre-law summer institute. These institutes, held on law school campuses across the country, simulate the classroom setting of first year law school, exposing students to the rigors of legal study. Utilizing full-time law school professors and a proven curriculum that emphasizes critical thinking, legal analysis and writing skills, CLEO has built a reputation of credibility and has produced more than 6,000 successful alumni from more than 170 law schools. Unfortunately, Federal funding for CLEO was eliminated during the fiscal year 1996 appropriations process. This highly beneficial and cost-effective program has persevered primarily through the assistance of private donations and the sponsorship of the American Bar Association [ABA]. The bill I am introducing today, a companion to Congressman Cummings' legislation in the House, would restore much of the CLEO framework. The Thurgood Marshall Legal Opportunity Program would identify socially and economically disadvantaged law school students and provide them with the opportunity to hone their skills through summer institutes, midyear seminars and support services. Mr. President, every society places a premium on education in terms of developing a skilled and trained work force in the next generation, and the more economically complex the world becomes, the more urgent it is to develop these human resources. This program will provide the necessary resources to ensure that those who have proven themselves at the undergraduate level of study are able to maximize their potential as they move on to law school. Investing in the promise of these talented individuals is a worthwhile endeavor and I encourage my colleagues to join me in supporting this legislation. I ask unanimous consent that the text of the bill be printed in the Record.

Mr. SARBANES

Mr. SARBANES. Mr. President, it was my singular honor this past September to attend the annual dinner of the Center for National Policy where Representative Lee Hamilton of Indiana received the Edmund S. Muskie Distinguished Public Service Award. Representative Hamilton's distinguished record of public service exemplifies, both in spirit and deed, the principles which the late Senator Muskie brought to public service. The Congress and the American people will deeply miss Lee Hamilton's wisdom, sound judgment, and the 30 years of dedicated and independent representation he gave to his fellow Hoosiers. These values were tangibly evidenced in Lee Hamilton's acceptance speech which demonstrated why he is one of the most respected and listened to Members of Congress. His plain Hoosier common sense and high standards of public service have well served the Nation. It is most fitting that he should receive this award named for another distinguished American legislator and that Congressman Hamilton's remarks be recorded for posterity. Mr. President, I ask that they be printed in the Record. The remarks follow:

Mr. SARBANES

Mr. SARBANES. Mr. President, this past August, I was privileged to address the Order of AHEPA during the celebration of its 75th anniversary in Atlanta, GA, the city of its founding. AHEPA, American Hellenic Educational Progressive Association, the largest Greek-American fraternal organization, has played a pivotal role in bringing Greek-Americans into the mainstream of American life, and promoting the ideals of Hellenic culture. It has also launched significant philanthropic and educational initiatives which have benefited both the Greek-American community and American society at large. As part of this 75th anniversary commemoration, James Scofield, a past supreme president of AHEPA, prepared for article on the early origins of AHEPA entitled, ``Forgotten History: The Klan vs. Americans of Hellenic Heritage in an Era of hate.'' This piece, written by Mr. Scofield, recently retired after 30 years as a senior executive at the St. Petersburg, FL, Times, has appeared in the AHEPA magazine and many Greek-American publications. It records the struggle which Greek-Americans encountered in their effort to participate fully in American society. AHEPA's history, as presented by Mr. Scofield, also reminds us of the extraordinary progress which our country has achieved in providing opportunity for people of all races, religions, and backgrounds. We are most appreciative to Mr. Scofield for his unique contribution and admonition to continue our efforts to ensure justice and respect for all. I ask that his article be printed in the Record. The article follows: Forgotten History: The Klan vs. Americans of Hellenic Heritage in an Era of Hate (By James S. Scofield) ahepa emerges 75 years ago to win battle against bigotry It was 1922, Americans of Hellenic heritage were suffering personal and economic intimidation orchestrated by the revived Ku Klux Klan. It was time for them to unify and organize, to protect and defend life and livelihood. The widespread and often violent discrimination against immigrants from Greece is an almost forgotten page of American history. This is probably because of their subsequent success and the great accomplishments of their descendants. Very few persons today, Hellenic or not, are even vaguely aware of the massive continental strength of the Klan of the 1920s and its intensive persecution of foreign- born Greeks, including those who had chosen to become American citizens. They do not know how deeply the evil shadows of bigotry, hatred and intolerance cast their malignant darkness over North America. Perhaps it is time to remind them. The newly-reorganized KKK rampaged against frightened immigrants and helpless minorities throughout the U.S. It dominated politics in states in both the North and South. In Canada, its dangerous wicked ways were transplanted and flourished, especially in the western provinces. An estimated three million militant hooded Klansmen stalked across our continent, burning crosses and spawning terror. During its reign of power, the Klan elected sixteen U.S. Senators, eleven Governors and an undetermined large number of Congressmen, both Republican and Democrat. It reportedly exerted considerable influence in the White House. Klan organizations ruled local politics in the major cities of Dallas, Denver, Indianapolis and Portland, Oregon, as well as in such smaller communities as Anaheim, California; El Paso, Texas; Youngstown, Ohio and Portland, Maine. In 1992, California and Oregon voters elected Klan-endorsed gubernatorial candidates. Then in 1924, a Klan candidate won the governorship in Kansas. The same year, the Klan endorsed U.S. Senate winners in Alabama, Colorado, Georgia, Indiana, Oklahoma and Texas. It also won the gubernatorial contests in five of these six states, barely losing in Texas. At U.S. election polls, Klansmen passed out cards which crudely and defiantly declared: When cotton grows on the fig tree And alfalfa hangs on the rose When the aliens run the United States And the Jews grow a straight nose When the Pope is praised by every one In the land of Uncle Sam And a Greek is elected President THEN--the Ku Klux won't be worth a damn. Meanshile, embattled but visionary Greek immigrant leaders met on July 26, 1922, in Atlanta to form the American Hellenic Educational Progressive Association, now better known as the Order of Ahepa. Not by coincidence, Atlanta was the home of the national Imperial Headquarters of the Klan. The most important goal of the Ahepa founders was to quickly and solidly establish better relations with non- Greeks. They agreed to do this by taking the positive high road of reason emphasizing assimilation, cooperation, persuasion and unlike their marked foes, non-violence. Their main discussion was how to best contain the wave of hostility which had almost drowned them. The ominous specters of twisted Americanism and KKK aggression spurred them to create a patriotic fraternal order espousing undivided loyalty to the United States. American citizenship, proficiency in English, active participation in the civic mainstream, economic stability, social unity and the pursuit of education. The latter was considered vital for its obvious gifts of knowledge and as the essential key to upward mobility. The Ahepa founders were profoundly disturbed and alarmed by their bitter experiences with Klan prejudice and by reports of worse bigotry elsewhere. Even before the Klan reappeared, there had been senseless attacks on foreign-born Greeks, some fatal. However, the new Klan expertly and abrasively honed intolerance with brutal efficiency to silence and subdue all of its alleged inferiors. Many Greek-owned confectioneries and restaurants failed financially or were sold at sacrificial prices to non-Greeks because of boycotts instigated by the Klan. Greek establishments doing as much as $500 to $1,000 a day business, especially in the South and Midwest, dropped to as little as $25 a day. The only recourse was to sell or close. The Klan often bolstered its boycotts by openly threatening or attacking customers entering and leaving. A Klan Imperial Lecturer told Klansmen in Spokane that Mexicans and Greeks should be sent back to where they came from so that white supremacy and the purity of Americans be preserved. Meanwhile, in Palatka, Florida, a Greek immigrant was flogged for dating a ``white'' woman. The Royal Riders of the Red Robe was a Klan affiliate assembled ``as a real patriotic organization'' for approved naturalized citizens unluckily born outside the United States. However, in the ultimate snub of exclusion, immigrants from Greece, Italy and the Balkans were not eligible to join. In Indiana, the state most politically controlled by the 1920s Klan, burning crosses were ignited in the yards of outspoken Hellenes. Unprovoked beatings of Greeks were not reported to police lest another beating soon follow. Others were warned of dire consequences if they spoke Greek in public, even in their own business establishments. Hoosier Democrat and Republican leaders actively discouraged naturalized Hellenes from filing for public office, forcing them to run as Socialist Party candidates. Fearful Greek Orthodox Christians indefinitely postponed impending plans to organize parishes. To avoid constant confrontation, long and difficult to pronounce first and last names of Greek origin were shortened or changed to more acceptable Americanized versions. False rumors spread by the Klan about supposed unsolved murders of Greeks in other states produced the desired dread. The Klan Grand Dragon of Oregon said in a spirited speech in Atlanta: ``The Klan in the western states has a great mission to perform. The rapid growth of the Japanese population and the great influx of foreign laborers, mostly Greeks, is threatening our American institutions; and, Klans in Washington, Oregon and Idaho are actively at work to combat these foreign and un-American influences.'' Probably the most blatant hard-line bullying, almost humorous, occurred in Pensacola, Florida. A Klansman handed a note to a Greek restaurateur which read: ``You are an undesirable citizen. You violate the Federal Prohibition Laws and laws of decency and are a running sore on society. Several trains are leaving Pensacola daily. Take your choice but do not take too much time. Sincerely in earnest, KKK.'' Today, according to sociologist Charles C. Moskos, Jr., of Northwestern University, American Hellenes proudly rank first among all ethnic groups in individual educational attainment and second in individual educational attainment and second in individual wealth. They have succeeded in every facet of American life. The Order of Ahepa has played the prime historic role in this ascent. True to its original mission, Ahepa financially supports scholarships, educational chairs, housing for the elderly, medical research, community programs, charitable projects and other worthy endeavors through contributions of more than two million dollars a year from its chapter, district and national levels. Ahepa validated its patriotic roots during World War II by selling over five hundred million dollars of U.S. War Bonds, more than any organization in America. Meanwhile, Ahepa officials first visited the White House to meet with President Calvin Coolidge in 1924 and have conferred with all twelve Presidents since Presidents Franklin Roosevelt, Harry Truman and Gerald Ford became Ahepa members. More recently, Ahepa raised $400,000 for the restoration of Ellis Island and the Statue of Liberty and $775,000 for a sculpture commemorating the Centennial Olympic Games in Atlanta. Ahepa has received congressional and presidential recognition for promoting friendship and goodwill among the people of the United States, Canada, Greece and Cyprus. President George Bush hailed Ahepa as one of ``the thousand points of light.'' Ahepa moved its headquarters to Washington DC in 1924 and later expanded its scope by adding three auxiliaries to complete the Ahepa Family: the Daughters of Penelope for women, the Sons of Pericles for young men and the Maids of Athena for young women. Its combined eight hundred chapters, consisting of about 35,000 members, cover the United States and Canada and have planted successful units in Australia and Greece. It held its 75th annual convention in Atlanta in August. In 1990, Ahepa filed an amicus curiae (friend of the court) brief in the Georgia Supreme Court. It backed the legal position of the National Association for the Advancement of Colored People (NAACP) and the Anti-Defamation League (ADL) of B'nai B'rith in support of a state law banning masks in public which was challenged by the KKK. The court ruled 6 to 1 to uphold the constitutionality of the anti-mask statute. The significance of the favorable decision to a jubilant Ahepa was that it came in the city of its founding and helped seal the doom of another failed Klan revival. Moreover, it enabled Hellenes to join in victorious celebration with fellow black and Jewish Americans whose forbearers also were sadistically harmed physically, mentally and economically by the KKK of yesteryear. Along with Roman Catholics, Asians and other immigrants considered unacceptable by the Klan, they were targeted separately and together then because they did not fit the rigidly narrow KKK concept of what constitutes a good and loyal American. For Hellenes, it is supremely ironic that the six organizers of the original Klan in 1865 created the words Ku Klux from kuklos, a variation of the Greek kyklos meaning cycle or circle, and applied it to their own little circle. Today the 1920s version of the KKK is long gone--and its flickering reincarnations are virtual nonentities. The Klan deserved to die--and died. The Order of Ahepa thrives three quarters of a century after its historic birth amid the fiery heat of hate-- generated by the toxic Klan cauldron of insane fanaticism. Ahepa deserves to live--and lives.

Mr. SARBANES

Mr. SARBANES. Mr. President, I rise today to pay tribute to the men and women who have served our Nation's Armed Forces and the tremendous sacrifices they have made for this country. It has always been my view that these citizens who are called upon to defend our Nation, to risk and in many cases sacrifice their lives, deserve our upmost respect and gratitude, not only on Veterans Day, but for the peace and freedom we enjoy every day. This day allows us all to contemplate the bravery and absolute importance of the men and women who have served and are currently serving in our Armed Forces. It is in large part because of their efforts and sacrifices that we are ensured the domestic tranquility with which to progress and become an even greater Nation. Moreover, their service has helped to ensure peace throughout the world and for generations of Americans to come. Whether directly involved in conflict or not, it is this mission the dedicated men and women in the Armed Forces are sworn to uphold and we all value and recognize their hard work and tremendous contributions. The First World War ended on the 11th hour, of the 11th day, of the 11th month, in 1918 on the day we now call Veterans Day. By the end of the first world conflict there had been more than 37 million military casualties, in addition to 10 million deaths among the civilian population. The effects of this war were felt around the world, but the sacrifice and tragedy associated with it were destined to be repeated with more bloodshed and even deadlier consequences. Mr. President, it is my view that the purpose of Veterans Day is not only to understand and honor the depth of the sacrifice that has already been made by our Nation's veterans, but to help strengthen our vows for peace in the future. It is the hope of many, indeed, all of us who celebrate Veterans Day, that this day, through reflection, will strengthen and foster peace worldwide. We should use this day as a link to our past in a way that helps us understand the depth of the tragedy and loss incurred in previous wars and thereby help us keep the peace and our democratic way of life. To ignore this link would deplete the purpose and meaning of this important day. So, I rise today to pay the upmost tribute to our veterans, past and present. As we celebrate Veterans Day, I want to extend my sincere gratitude to those who have sacrificed and died, those who have served, and those who are serving now. We will never forget your service and your sacrifice.

Mr. SARBANES

Mr. SARBANES. Does the Senator see any problem with running trade deficits?

Mr. SARBANES. Will the Senator yield?

Mr. SARBANES. The Senator from North Dakota is making an extremely important point. The assumption is trade, by definition, is good; but the focus is all on exports and not on the balance of trade. This is what has happened to our trade balance since 1975. You can see this incredible deterioration that has taken place. We are running negative trade deficits year in and year out. And the consequence of doing this, I say to my distinguished colleague, is this is what has happened to the American net foreign investment position. The United States, in 1980, was a creditor nation to the tune of about $400 billion. In other words, we had claims on others. We were a creditor nation. And now that has deteriorated so that the United States now, when we add in what the trade imbalance will be this year, will be about a $1 trillion debtor nation. We have gone from being the world's largest creditor nation to being the world's largest debtor nation. And then everyone comes along and says, ``Well, no one wants to focus on this issue. No one wants to pay any attention to it.'' I mean, the Senator from North Dakota has been absolutely right. He said, ``Look, there are two sides to this thing. There are your exports and there are your imports.'' Yes, we are getting additional exports, but we are getting far more imports. As we get these imports, and we get this deterioration in our trade balance--look at that. Since World War II, we have been running a positive trade balance, modest but positive, year in and year out. And this is the deterioration that has taken place in it over the last 20 years. And, of course, each year we run these large trade deficits --$100 billion, $150 billion, $120 billion trade deficits year after year after year. It is offset somewhat by the service, but not enough. I mean, the net is reflected in this chart, which is not quite as bad as the previous level but still shows us year after year showing these deficits. The consequence of that--these amount to about $1.5 trillion over that period of time. We have been running a trade balance deficit since 1975 of $1.5 trillion. And the consequence of doing that is that our net asset position is absolutely deteriorating. Look at this chart. This is what has happened. This is the U.S. net foreign investment position. In 1980, before we got this tremendous decline, we were a creditor nation, the world's largest creditor nation; in other words, others owed us. And now we are the world's largest debtor nation. And by the end of this year, it will be to the tune of $1 trillion--$1 trillion. Now, you cannot go on doing this indefinitely. You can do it for a period of time, but you cannot do it indefinitely. In any event, the whole time you are doing it, we are taking on an increase in volume of foreign indebtedness through these large and persistent trade deficits--the losses sustained every year by buying more goods from others than they are buying from us. And we are undercutting the Nation's capacity for mass consumption by declining wages and loss of high-income employment. As the Senator from North Dakota said, they said, ``Well, your consumers can buy cheaper products.'' But then the question is, ``Well, suppose they're not working? Suppose they've been thrown out of a job by these importations?'' They can't buy anything. They can't buy anything.

Mr. SARBANES. Mr. President, I ask unanimous consent that we go into a quorum call and the time to be charged to the other side.

Mr. SARBANES. I am glad to see the chairman of committee. We are down to 40 minutes and there are almost 80 minutes on the other side. And as we approach the conclusion of the debate I think it would be reasonable at this point for the other side to use some of its time. Mr. DORGAN addressed the Chair.

Mr. SARBANES. The real world may be ahead of the textbook writers.

Mr. SARBANES. Yes, it has. Mr. ROTH addressed the Chair.

Mr. SARBANES. Will the Senator yield on that point?

Mr. SARBANES. Since 1974, our trade deficit on merchandise goods is $1.8 trillion. In just over 20 years, $1.8 trillion. Up until 1975 we had been running modest surpluses every year in our merchandise trade deficit. So there has been a dramatic deterioration.

Mr. SARBANES. That is right. We are not driving the right trade bargains. Something is wrong with a trade policy that gives you this deterioration in your net foreign investment position. Something is wrong with a trade policy that takes the United States, in less than 20 years, from being the largest creditor nation in the world, in other words, people owe us, and in 20 years makes the United States the largest debtor nation in the world. Something is wrong. The Senator is absolutely right to focus on it. Everyone says, ``Well, we succeeded in selling $3 billion worth of airplanes to China on this visit that they had.'' Our trade imbalance with China is over $40 billion and increasing all the time. It is increasing all the time. It may soon surpass the trade deficit with Japan. The consequence is that we are selling to them far less--far, far, far less--than they are selling to us.

Mr. SARBANES. That is right.

Mr. SARBANES. ``Consider'' is not the right word. They do not say, ``We would like you to consider.'' The Washington Post ran an article just the other week, and here is the heading of the article: ``China Plays Rough. Invest and Transfer Technology or No Market Access.'' And that article then described how China forces U.S. companies to transfer jobs and technology as a price for getting export sales. So, in effect, what they say is, ``We won't take any of your exports if you don't give us the investment and the technology so we can then produce them ourselves.'' So what are our people doing? In order to get these short-run exports, they give away the capacity to maintain a long-run position. And the Chinese, in effect, extract that capacity out of them. So, yes, they make a short-run purchase, but at the same time they are getting the investment and technology so they do not have to make long-run--not only will they not make long-run purchases, but, mark my word, they will be exporting these products themselves elsewhere in the world. Not only will they, in effect, close our people out from getting into the Chinese market; they will become their competitors in other markets on the basis of the investment and the technology that our people transferred to China in order to get these short-term sales. That is exactly what is going to happen. And the consequence of that is our trade position will continue to deteriorate, and we will go on to become an even bigger debtor nation.

Mr. SARBANES. Certainly.

Mr. SARBANES. The Senator is absolutely on point. Just let me read you two quotes from two very able authors. One is Benjamin Friedman, who is a professor of economics at Harvard, and his book called ``Day of Reckoning.'' I again want to go back and emphasize the fact that we have gone from being the world's largest creditor nation to now being the world's largest debtor nation. This is the deterioration that has taken place in the U.S. net foreign investment position. This is what Professor Friedman says about that: World power and influence have historically accrued to creditor countries. It is not coincidental that America emerged as a world power simultaneously with our transition from a debtor nation, dependent on foreign capital for our initial industrialization, to a creditor nation supplying investment capital to the rest of the world. But we are now a debtor again, and our future role in world affairs is in question. People simply do not regard their workers, their tenants and their debtors in the same light as their employers, their landlords and their creditors. Over time, the respect and even deference that America has earned as world banker will gradually shift to the new creditor countries that are able to supply resources where we cannot, and America's influence over nations and events will ebb. That is the big issue that is behind all of this. That is the issue we really ought to be debating. The whole direction in which--everyone comes out here and says--you know, I listened to the President yesterday. He said, ``We've got trade.'' I will not quarrel with that. ``I'm trying to negotiate good trade agreements with other countries.'' But look what is happening to us. We have had this incredible deterioration in our trade balance and this represents $1.5 trillion dollars of deficits over the last 20 years. This is what has happened to our net foreign investment position. This is a devastating chart when you think about what it has done to the United States. William Wolman, chief economist at Business Week, had this to say, and it ties right in with the Senator's comments about economic growth, ``The Implication of Debtor State for U.S. Economic Growth.'' The transformation of the United States from a major international creditor to an international debtor has major implications for future United States economic growth. It is no accident that back in the 1950's and 1960s when the United States was a creditor nation interest rates were lower here than they were abroad and the dollar was a strong currency. But since the United States has become a debtor nation U.S. interest rates are higher than those in the other industrial countries, and the dollar, despite its revival in 1996, has become a weak currency. The effect is, of course, to squeeze the average American standard of living both because Americans are forced to pay high real interest rates for what they borrow and because a weak dollar means that America must produce and export more goods to earn foreign currencies than it had to when the dollar was a stronger currency. Debtor status has the same effect on a country as on citizens of that country. What is in effect the disposable income of the United States is under downward pressure, just as surely as the disposable income of its highly indebted citizens. You can't get people to focus on this. Trade has two sides to it: What you export and what you import. If you import more than you export, you will be running trade deficits. If you are running trade deficits, that means people abroad are accumulating claims against us that we have to pay off over time. So we have now gone from being a creditor country to being the world's largest debtor country. We continue to be a world power but how long can you sustain that position? It is not as though we have stopped the hemorrhaging. If we run a $125 billion trade deficit, our net position will deteriorate another $125 billion. This line will continue to go down as long as we are running a negative trade debt. Suppose we cut it in half, suppose we reduce it from $120 billion to $60 billion, which would be a terrific accomplishment. Say you do that in a year's time, you reduce it from $120 billion to $60 billion, the net position deteriorates another $60 billion, another $60 billion. The next year you cut it to $30 billion, it deteriorates another $30 billion. We are getting ourselves deeper and deeper into the hole. We can't get anyone to focus on this. The distinguished Senator from North Dakota I think has brought our attention back to an exceedingly important point, and I thank him very much for yielding to me to make these points.

Mr. SARBANES. Will the Senator yield?