November 19, 1999 CONGRESSIONAL RECORD—SENATE 31143 will bring their insight and innovation A TRIBUTE TO ERIC sumers, ahead of American companies like to the task of helping to end this epi- HARNISCHFEGER General Electric and Coca-Cola. A tireless traveler who moved his family to demic. ∑ Mr. GREGG. Mr. President, I want to I was proud to be a supporter of the in 1963 for a year to learn Amer- mention the efforts of Special Agent legislation which established this ican ways, Mr. Morita also spearheaded the Eric Harnischfeger, who has been on internationalization of Japanese business. group, and am pleased that such an detail from the U.S. Secret Service to Sony was the first Japanese company to eminently qualified Georgian has been the Appropriations Subcommittee on offer its stock in the , in 1961, selected to serve as a member. Mr. Commerce, Justice, State, and Judici- one of the first to build a factory in the President, I offer my congratulations United States, in 1972, and still one of the ary for the consideration of the fiscal to Dr. Ball for this honor, and am con- only ones to have even a couple of West- year 2000 bill. Eric has been a consider- fident that she will continue in her role erners on its board. able asset to the subcommittee, as- of outstanding service and leadership Sony also became a major force in the tutely handling some of our more dif- to the youth of Georgia, and our coun- American entertainment business, acquiring CBS Records in 1988 and Columbia Pictures, try.∑ ficult law enforcement accounts. His management of counterterrorism pro- the Hollywood studio, in 1989. The latter pur- f grams, office of justice programs, and chase, however, turned into an embarrassing IN COMMEMORATION OF state and local law enforcement ac- debacle as Sony suffered big losses in Holly- wood. NATIONAL BIBLE WEEK counts is greatly appreciated. Eric’s ability to provide keen insight and a A JAPANESE EXECUTIVE AMERICANS ∑ Mr. LIEBERMAN. Mr. President, the RECOGNIZED friendly manner toward any task he is week of Nov. 21–28 is an important time In the process, Mr. Morita, with his white for houses of worship and individuals of asked to deal with assured a competent mane and quick tongue, became the unoffi- all religions across the country—Na- resolution. cial representative of Japan’s business com- tional Bible Week. Eric’s professionalism, wit, and jovial munity, generally working to smooth trade As this year’s National Bible Week manner will be missed. Agent relations between his country and the United co-chair, it is my privilege to pay trib- Harnischfeger exemplifies the high States, but sometimes stirring resentment in ute to the Bible and its remarkable in- standards that the Secret Service is both countries with his pointed criticisms. fluence on American life. As in past known for and has done an excellent ‘‘He was truly a statesman par excellence years, the National Bible Association job for us. I just want to thank him in a business sense,’’ Mike Mansfield, the former senator and United States Ambas- is hosting the week-long salute to the publicly for all his efforts over the past sador to Japan. ‘‘Internationally, he did Good Book. This year, the tribute hap- year. Based on his performance here, I more for Japan in a business sense than any- pens to fall during the Thanksgiving am sure he has a bright future at the one else in Japan.’’ holidays; this seems fitting, because we Service. We wish him the very best.∑ In Japan, Prime Minister Keizo Obuchi, who was one of several hundred people to should be eternally thankful that we f have the teachings of the Bible to help visit Mr. Morita’s Tokyo home following his guide our daily lives. ON THE DEATH OF AKIO MORITA death, called Mr. Morita ‘‘a leading figure who played a pivotal role in developing Ja- And old maxim states that ‘‘A ref- ∑ Mr. MOYNIHAN. Mr. President, ormation happens every time you open pan’s postwar economy,’’ according to Kyodo today I rise to note the passing of Akio News Service. the Bible.’’ Indeed, no book over the Morita, the brilliant Japanese business Sony’s current president, Nobuyuki Idei, course of human history has had a leader who did so much to rebuild his said in a statement, ‘‘It is not an exaggera- more profound effect on how we live country after World War II. I ask that tion to say that he was the face of Japan.’’ and act. The Bible has influenced West- his obituary that appeared in the Octo- To the day of his death, nearly six years after the stroke that removed him from an ern culture in myriad ways, shaping ber 4 New York Times be printed in the areas as diverse as government and art. active role in business, he was still no doubt RECORD. John Wycliffe, the great religious re- Japan’s most famous business executive, and The obituary follows: former, once wrote, ‘‘The Bible is for the only one many Americans could name or the government of the people, by the [From , Oct. 4, 1999] recognize in a photograph. Time magazine recently selected him as one of 20 ‘‘most in- people, and for the people.’’ The AKIO MORITA, CO-FOUNDER OF SONY AND JAPANESE BUSINESS LEADER, DIES AT 78 fluential business geniuses’’ of the 20th cen- writings found within it inspired many tury, the only non-American on the list. of our nation’s founders’ most cher- (By Andrew Pollack) In his own country, where executives tend ished ideals—ideals that remain cor- Akio Morita, the co-founder of the Sony to be self-effacing, Mr. Morita was viewed as nerstones of democracy today. The Corporation who personified Japan’s rise a bit flamboyant and arrogant. He was the Bible, for example, advocates faith in a from postwar rubble to industrial riches and first to fly around in a corporate business jet greater good, the glory of freedom, the became the unofficial ambassador of its busi- and helicopter. He appeared in a television ness community to the world, died on Sun- importance of family, and the sanctity commercial for the American Express card. day in Tokyo. He was 78. He served on the boards of three foreign com- of every human life. The Bible is at the Mr. Morita died of pneumonia, according panies. He took up sports like skiing, scuba heart of America’s civic religion. to Sony. He had been hospitalized in Tokyo diving and wind surfing in his sixties. He ca- Far from archaic, the Bible is as im- since August, after returning from Hawaii, vorted with the rock star Cyndi Lauper after portant today as it has ever been, par- where he had spent most of his time since Sony bought CBS Records. ticularly as many Americans feel this suffering a debilitating stroke in November Shortly before he suffered his stroke, Mr. country slipping into moral decline. 1993. More than anyone else, it was Mr. Morita made waves in his home country by Our best hope of righting our national Morita and his Sony colleagues who changed saying that Japan was like a ‘‘fortress’’ and ship is to instill in future generations the world’s image of the term ‘‘Made in that its unique business practices were alien- Japan’’ from one of paper parasols and shod- the core values of love, truth, honor, ating its trading partners.’’ Although there dy imitations to one of high technology and is much to commend in Japan’s economic and service enshrined in the Bible. high reliability in miniature packages. system, it is simply too far out of sync with As an Orthodox Jew, my faith orders Founded in bombed-out Tokyo department the West on certain essential points,’’ he my life, gives me a sense of purpose store after World War II, Sony became indis- wrote in The Atlantic Monthly in June 1993. and direction, and provides comfort in putably one of the world’s most innovative He advocated shorter working hours, more uncertain or difficult times. The Old companies, famous for products like the dividends for stockholders of Japanese com- Testament or Torah serves as a con- pocket-sized transistor radio, the video- panies and a sharp cutback in government stant reminder of my obligations to cassette recorder, the Walkman and the com- regulation. Now, as Japan struggles through God, country, and family. pact disk. an economic slump that has lasted most of So as Thanksgiving approaches, I en- And Mr. Morita, whose contribution was the decade, some of what Mr. Morita advo- greater in marketing than in technology, cated is being adopted. courage every believer in this land to made the Sony brand into one of the best ‘‘Japan was coming closer to him and see- open the Bible, read a favorite passage known and most respected in the world. A ing the need for that kind of leadership,’’ or two, and give thanks to God for this Harris poll last year showed Sony was the said Yoshihiro Tsurumi, professor of inter- wonderful, sacred Book.∑ No. 1 brand name among American con- national business at the Baruch Graduate

VerDate jul 14 2003 09:06 Jul 27, 2004 Jkt 029102 PO 00000 Frm 00317 Fmt 0686 Sfmt 0634 E:\BR99\S19NO9.011 S19NO9 31144 CONGRESSIONAL RECORD—SENATE November 19, 1999 School of Business at the City University of Tsushin Kogyo, or the Tokyo Telecommuni- One of Mr. Morita’s cardinal tenets was to New York. cations Engineering Corporation, which was foster and protect the company’s brand NEVER COMFORTABLE IN WEST’S BUSINESS inaugurated on May 7, 1946, with an invest- name. Early on, Bulova, the watch company, WORLD ment of about $500. said it would order 100,000 radios but would The company produced Japan’s first reel- sell them under its own name. Mr. Morita Mr. Morita entertained frequently and to-reel magnetic tape recorder. A few years turned down the huge order. His colleagues counted many American businessmen and later it licensed the rights to the transistor back in Tokyo thought he was crazy. But, politicians as his friends. ‘‘He not only made from Bell Laboratories, after overcoming re- Mr. Morita wrote in his autobiography, ‘‘I it Sony’s business but his own personal busi- sistance from the Ministry of International said then and I have said it often since: It ness to become intimately acquainted with Trade and Industry. Bell Labs officials was the best decision I ever made.’’ American society at all levels,’’ said Peter warned that the only consumer use would be Mr. Morita’s worst decision might have Peterson, an investment banker who is on for hearing aids. been with the Betamax, the first successful Sony’s board of directors. ‘‘I can recall play- But Sony used them to produce Japan’s consumer VCR. Sony did not readily license ing golf with Akio, watching him greet and first transistor radio in 1955. (An American its technology to other electronics compa- interact with every American C.E.O. on the company, Regency, produced the world’s nies. So most of its Japanese rivals banded course, all of whom seemed to know him as first a few months earlier but did not suc- together behind the VHS system, which of- a personal friend.’’ ceed in selling it.) In 1957, Sony came out fered longer recording time. Eventually, the In his book ‘‘Sony: The Private Life’’ with what it termed a pocket-sized tran- Betamax was run out of the market. (Houghton Mifflin, 1999) John Nathan sug- sistor radio. But the radio was actually a bit Sony evolved into a company that, by Jap- gests that Mr. Morita, a Japanese tradition- too big for most pockets, so Mr. Morita had anese standards at least, was very Western- alist at home, was never really comfortable Sony salesmen wear special shirts with ized, though in many ways it was tradition- in the Western business world. extra-large pockets. ally Japanese. All company employees, from Mr. Nathan, a Japanese translator and There followed the Trinitron television in the president on down, wore company jack- University of California professor of Japa- 1968; the first successful home VCR, the ets, a common practice in Japan. But Sony’s nese culture who was granted free access to Betamax, in 1975; the Walkman personal uniforms were created by the designer Issey Sony executives, quotes Mr. Morita’s eldest stereo in 1979, and the compact disk, devel- Miyake. son, Hideo, as saying of his father, ‘‘He had oped with Philips N.V. of the Netherlands, in Mr. Morita first criticized some of his own to ‘act’—I’m sorry to use that word but I 1982. country’s business practices in 1966, when he can’t help it—he had to act as the most Not all products were successful. Sony has wrote a book published in Japanese, with a international-understanding businessman in stumbled several times trying to sell per- title that might loosely translate as ‘‘An Japan.’’ But, Hideo adds, ‘‘It was never real.’’ sonal computers. And in 1981, Mr. Morita an- Essay on the Useless School Career.’’ He And Sony’s current president, Mr. Idei, is nounced the Mavica, a digital camera that criticized Japanese companies for hiring and quoted as saying: ‘‘Japanese of the genera- recorded pictures on a floppy disk instead of promoting people based only on what college tion before mine had an inferiority complex on film. But the camera did not come to they had attended. Sony stopped even asking about foreigners. Akio Morita himself was a market and critics accused Mr. Morita of applicants the name of their college, and it living inferiority complex.’’ making a premature announcement to bur- was one of the first Japanese companies to Despite being virtually synonymous with nish Sony’s image as an innovator. base salaries partly on merit instead of sole- Sony, especially outside Japan, Mr. Morita STEERING CONSUMERS TO PRODUCTS THEY WANT ly on seniority. did not actually become the company’s TRIED TO REDUCE U.S. TRADE TENSIONS president until 1971 and its chairman and Mr. Morita did not believe in market re- chief executive until 1976. Before that, he search. ‘‘Our plan is to lead the public with Perhaps because of Sony’s dependence on was the junior partner to Masaru Ibuka, an new products rather than ask them what exports, Mr. Morita tried to reduce trade engineering genius who, while not as widely kind of products they want,’’ he declared in tensions with the United States. In the late known in the West, is considered in Japan to his autobiography, ‘‘Made in Japan.’’ (E. P. 1960’s, Sony forged a temporary joint venture be the main founder of Sony. Mr. Ibuka died Dutton, 1986), written with the journalists with Texas Instruments Inc., then the in December 1997 at the age of 89. Edwin M. Reingold and Mitsuko Shimomura. world’s leading semiconductor company, al- ‘‘The public does not know what is possible, lowing it to set up operations in Japan. AN EARLY FASCINATION LEADS TO A CAREER but we do.’’ In 1972, Mr. Morita set up a subsidiary to SHIFT Mr. Morita prided himself in particular on export American products, like Regal Akio Morita was born on Jan. 26, 1921, into the Walkman, the portable stereo cassette cookware and Whilrpool refrigerators, to a wealthy family in Nagoya, an industrial player with headphones. Actually, according Japan. city in central Japan. As the eldest son, he to the company’s official corporate history, ‘‘Selling pans and cookware and refrig- was groomed from elementary school age to it was Mr. Ibuka who came up with the idea erators was not our bag, but Akio believed in succeed his father as president of the sake for the portable product. But Mr. Morita doing something for the U.S.-Japan relation- brewery that had been in the family for 14 pressed hard for the project, overcoming re- ship,’’ said Sadami (Chris) Wada, who ran generations. sistance within Sony to a tape player that, that effort and then handled government re- But in junior high school, Akio became fas- in its early versions, could not record. Mr. lations for the Sony Corporation of America cinated by his family’s phonograph, an appli- Morita, despite initial reservations about the for many years. The operation was aban- ance rare in Japan at that time. He became awkward name, eventually ordered all Sony doned some years later as unsuccessful. an avid electronics hobbyist, building his subsidiaries around the world to begin using In 1988, Mr. Morita founded the Council for own crude phonograph and radio receiver. He it. Better Corporate Citizenship, made up of studied physics at Osaka Imperial University From the start of the company, however, Japanese companies. At a time when Japa- as World War II was starting. Mr. Morita en- Mr. Morita was much more involved in mar- nese politicians were angering African- listed in the Navy under a program that keting, while Mr. Ibuka handled technology Americans with insensitive remarks, one of would allow him to do research instead of development. And from the start, he had an the council’s first projects was to make serving in combat. international orientation, traveling to New thousands of copies of an abridged version of It was while developing heat-seeking weap- York and Europe in the 1950’s to sell the ‘‘Eyes on the Prize,’’ the American television ons that Mr. Morita first worked with Mr. company wares. documentary about the struggle of blacks for Ibuka, 13 years his senior, who before the Such international focus was needed be- equal rights, and distribute it to high war had started an electronic instrument cause as a new company, Sony had some schools in Japan. company. trouble breaking into its home market, Mr. Morita was not adverse to using his in- After the war, Mr. Ibuka set up a new com- where more established manufacturers had fluence among American politicians and pany in a bombed-out department store in close relationships with retailers. Indeed, Ja- business executives to lobby for Sony. He Tokyo, making kits that converted AM ra- pan’s other big postwar success, the Honda barnstormed the United States in 1984, meet- dios into short-wave receivers. Mr. Morita Motor Company, also succeeded first in the ing with governors and with President happened to read a newspaper article about United States and to this day sells more cars Reagan, threatening to build Sony factories this and contacted his old friend. The next in American than in Japan. only in states that did not have the ‘‘unitary year, when Mr. Ibuka wanted to incorporate Mr. Morita soon realized that the company tax,’’ which was levied against a multi- the company, he asked Mr. Morita to join. needed a name that foreigners could national corporation’s global earnings, not Mr. Morita, Mr. Ibuka and another execu- pronouce and remember. So in 1958 the com- just those in the state. Eventually California tive traveled to the Nagoya area to implore pany name was changed to Sony, derived and other states scrapped the tax. Mr. Morita’s father to release his son from from the Latin sonus, meaning sound, and But while Mr. Morita was often perceived the family business. The elder Mr. Morita from the American vernacular ‘‘sonny boy,’’ as a friend of the United States, he was often not only agreed, he also later became a fi- which Mr. Morita hoped would purvey a critical of it and proud of being Japanese, nancial backer of the new company, Tokyo young image. flying his country’s flag over Sony’s New

VerDate jul 14 2003 09:06 Jul 27, 2004 Jkt 029102 PO 00000 Frm 00318 Fmt 0686 Sfmt 0634 E:\BR99\S19NO9.012 S19NO9 November 19, 1999 CONGRESSIONAL RECORD—SENATE 31145 York showroom when it opened in 1962. He were worried about stirring up anti-Japanese English at Trinity College, and from a often told a story of how ashamed he was on sentiment, exercised little oversight. long career in public service. Whether his first trip to Germany in 1953. At a res- In late 1994, in one of the most embar- in the role of teacher, college Presi- taurant, he ordered ice cream, and it was rassing moments in its history, Sony an- dent, or public official, Sister Eliza- served with a small paper parasol stuck in it. nounced that it would suffer a loss of $3.2 bil- ‘‘This is from your country,’’ the waiter said. lion from its investment in Hollywood. But beth has been a steadfast leader for women and a true advocate for those in HAILING THE SUCCESS OF THE JAPANESE WAY it has stuck with the studio, now called Sony Pictures Entertainment, and appears to be need. She is and will remain a stunning In the 1980’s, when Japan seemed on top of turning it around. example of how one person can posi- the world, Mr. Morita was among the most The Morita name will live on at Sony be- vocal of the Japanese executives in criti- tively affect so many. cause many members of Mr. Morita’s family cizing American business and hailing the In 1939, Sister Elizabeth Candon are involved in the company. success of the Japanese model. began her life of public service when Besides his wife, Mr. Morita is survived by He said American managers were financial she became a Religious Sister of his wife, Yoshiko; his eldest son, Hideo, who paper shufflers who ‘‘can see only 10 minutes now runs the sake brewery and other family Mercy. Educated at Trinity College and ahead’’ and were not interested in building businesses; a younger son, Masao, an execu- Fordham University, Sister Elizabeth for the long term. And he said that because tive with Sony Music Entertainment in started her career in 1954, when she re- American companies were losing interest in Japan; and a daughter, Naoko Okada, who turned to her alma mater as an Asso- manufacturing, the United States was also lives in Japan. He is also survived by his ‘‘abandoning its status as an industrial ciate Professor of English and Director brother Kazuaki, who volunteered to take power.’’ Those factors, he said, and not trade of Admissions. In 1966, she became a over the family sake brewery in Mr. Morita’s barriers, were the reason for America’s trade full Professor of English and Trinity stead; another brother, Masaaki, a long-time deficit with Japan. College’s President, a post she would Sony executive, and a sister, Kikuko Iwama, ‘‘There are few things in the United States who was married to the late Kazuo Iwama, a hold until 1976. that Japanese want to buy, but there are a former president of Sony. In 1977, Sister Elizabeth left the lot of things in Japan that Americans want world of academia to try her hand at A LONGTIME OUTSIDER IS EMBRACED AT LAST to buy,’’ he wrote in 1989. ‘‘This is at the root state government. At the request of of the trade imbalance. The problem arises In the 1990’s, corporate Japan, worried Vermont’s Governor, Richard Snelling, in that American politicians fail to under- about escalating trade tensions, turned to stand this simple fact.’’ Mr. Morita, whom it once considered an ar- Sister Elizabeth took the helm of In 1989, Mr. Morita was the co-author, rogant maverick, to be its official leader. Vermont’s largest agency as Secretary along with a nationalist politician, Shintaro Mr. Morita was slated to become chairman of of Human Services. As the first woman Ishihara, of ‘‘The Japan That Can Say No,’’ Keidanren, Japan’s most powerful business in Vermont history to serve as Sec- a book that urged Japan to stand up to lobbying organization, a post that had al- retary and the only woman in the Gov- American trade demands, which it said were ways gone to the head of a company in an ernor’s cabinet, Sister Elizabeth quick- motivated partly by racism. The book also old-line heavy industry like steel. ly became a role model for Vermont said Japan had the power to change the But on Nov. 30, 1993, while playing his women. Her tenure as Secretary also world balance of power by selling its ad- usual 7 A.M. Tuesday tennis game, Mr. vanced computer chips to the Soviet Union Morita suffered a cerebral hemorrhage. A provided her with an opportunity to ef- instead of the United States. year later, just days after Sony announced fect change and help those in need. Even though those strident remarks were its huge Hollywood loss, Mr. Morita, in a Under her leadership, community based generally in the chapters Mr. Ishihara wrote, wheelchair, attended a Sony board meeting programs were developed and as a re- the book created a stir when an unauthor- in Tokyo and resigned as chairman. sult, the Windsor State Prison and ized translation made its way around Wash- He had spent much of his time since then Vergennes’ Week’s School were both ington. Mr. Morita frantically backpedaled, undergoing rehabilitation at his beachfront closed. This restructuring allowed the saying the book had not been intended for an home near Diamond Head on the Hawaiian beneficial programs administered at American audience. And he refused to au- island of Oahu. At first, Mr. Morita was able thorize an English translation. to speak a little, shake hands and hit back these sites to be relocated throughout the state. $3.2 BILLION LOST IN HOLLYWOOD VENTURE tennis balls spit out by a machine, according to Mr. Wada, the retired Sony government Sister Elizabeth was and continues to It was later that year that Sony paid $3.4 relations manager. be tireless in her efforts to institute billion to buy Columbia Pictures, a purchase But more recently, Mr. Wada said, Mr. programs on behalf of those in need of driven largely by Mr. Morita, who thought Morita had lost the ability to speak and that if Sony had owned a studio issuing mov- mental health and developmental dis- communicated mainly through eye contact ies in the Beta format, it would not have lost abilities services. To this day she is re- with his wife. The couple’s Christmas greet- the VCR wars. membered for her motto, ‘‘anything is ing card last year had a message from Mrs. Although Sony prided itself on being more possible if it matters not who gets the Morita saying her husband rose at 6 A.M., re- Americanized than its Japanese rivals, the tired at 9 P.M. and spent much of the day in credit.’’ Consequently, this legacy has purchase became a lightning rod for Amer- rehabilitation. ‘‘He may be overeating,’’ she woven its way into the mission of the ican concern about a wave of Japanese acqui- said, mentioning his fondness for eel. Agency of Human Services. sitions of American companies and real es- Until he was taken to the hospital in Since returning to teaching at Trin- tate. ‘‘Japan Invades Hollywood’’ read the Tokyo in August, Mr. Morita had not re- cover of . In Japan as well, Sony ity as Professor of English in 1983, Sis- turned to Japan for more than two years be- came in for criticism for stirring up anti- ter Elizabeth has continued to bring cause of concerns that flying would further Japanese feeling in the United States. the beauty and inspiration of Shake- damage his health. He did not attend the 1997 Mr. Morita had a simple answer. ‘‘If you speare and Chaucer to her students. funeral of Mr. Ibuka. don’t want Japan to buy it, don’t sell it,’’ he But Sony officials still visited him in Ha- During this time, her steadfast leader- told New York Times reporter shortly after waii to keep him up to date on the business ship in community and public service the purchase. Nevertheless, sensitive to con- and show him new products. In January 1998, has continued. cerns, he promised that the studio would be some 200 executives, friends and dignitaries I should also acknowledge that run by Americans and would be free even to came to Hawaii to attend a party for Mr. throughout her career, Sister Elizabeth make a movie critical of Japan’s emperor. Morita’s 77th birthday, considered a lucky Worse than misjudging the political reac- has served on many boards and Coun- age in Japan.∑ tion, however, the seemingly sophisticated cils, further extending her influence on Sony proved to be a babe in the woods in f the issues important to her and to Hollywood. Vermonters. She sat on the Vermont Sony is generally considered to have over- TRIBUTE TO SISTER ELIZABETH Council on the Humanities and Public paid for the studio, and it paid several hun- CANDON Issues, the Board of Directors for the dred million dollars more to hire managers ∑ Mr. JEFFORDS. Mr. President, it is United Community Service of away from Warner Brothers—provoking a with great pleasure that I rise today in Chittenden County, and the Board of costly fight with that studio. Those man- agers, in turn, spent money extravagantly honor of an extraordinary Vermont Directors of Howard Mental Health and produced a sting of box office bombs. Mr. woman, Sister Elizabeth Candon. On Services. She also served as Trustee of Morita and his successor as Sony chief exec- January 1, 2000, Sister Elizabeth will Middlebury College and as Chairperson utive, Norio Ohga, perhaps because they retire from her post as Professor of of the State Task Force on Funding for

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