September 21, 1995 CONGRESSIONAL RECORD — SENATE S14081 the Indonesian government regularly. Our [Rollcall Vote No. 458 Leg.] thorized to appoint conferees on the current arms sales policy, codified in law YEAS—91 part of the Senate. last summer and included in S. 908, prohibits Abraham Ford McCain The motion was agreed to; and the the sale or licensing for export of small or Akaka Frist McConnell Presiding Officer (Mr. SMITH) appointed light arms and crowd control items until the Ashcroft Glenn Mikulski Mr. MCCONNELL, Mr. SPECTER, Mr. Secretary has determined that there has Baucus Gorton Moseley-Braun MACK, Mr. GRAMM, Mr. JEFFORDS, Mr. been significant progress on human rights in Bennett Graham Moynihan Indonesia, including in East Timor. Current Biden Gramm Murkowski GREGG, Mr. SHELBY, Mr. HATFIELD, Mr. law also forbids funding of International Bond Grams Murray LEAHY, Mr. INOUYE, Mr. LAUTENBERG, Military Education and Training (IMET) for Boxer Grassley Nickles Bradley Gregg Mr. HARKIN, Ms. MIKULSKI, Mrs. MUR- Packwood Indonesia. As you are aware, the Administra- Breaux Harkin RAY, and Mr. BYRD conferees on the Pell tion has proposed that this ban be rescinded, Brown Hatch part of the Senate. and there is language in the House author- Bryan Hatfield Pressler ization and appropriations bills that would Bumpers Heflin Pryor f permit funding for Expanded IMET (E–IMET) Burns Hutchison Reid Robb MORNING BUSINESS courses. Campbell Inhofe Rockefeller We understand that you or other Senators Chafee Inouye Mr. BENNETT. Mr. President, I ask Roth may be considering amendments to the For- Coats Jeffords unanimous consent that there now be a Cochran Johnston Santorum eign Operations Appropriations Bill that Cohen Kassebaum Sarbanes period for the transaction of morning would further restrict the types of defense Conrad Kennedy Shelby business with Senators permitted to items that can be sold or licensed for export Coverdell Kerrey Simon speak therein for up to 5 minutes each. to Indonesia. We also have heard that some D’Amato Kerry Simpson The PRESIDING OFFICER. Without Daschle Kohl Senators who oppose any IMET funding for Snowe objection, it is so ordered. Indonesia are considering working to have DeWine Kyl Specter the complete ban on such funding retained. Dodd Lautenberg Stevens f Dole Leahy Thomas You have proposed that you and others in Domenici Levin Thompson UNITED STATES/UNITED KINGDOM the Senate will refrain from attaching lan- Dorgan Lieberman Thurmond AVIATION RELATIONS guage to the Senate’s version of the bill re- Exon Lott Warner stricting arms sales to Indonesia and ban- Feingold Lugar Mr. PRESSLER. Mr. President, I rise Wellstone ning IMET funding if the Administration Feinstein Mack today to express my great disappoint- will agree to abide by our current arms sales NAYS—9 ment that an agreement further liber- policy and accept only funding for E–IMET alizing United States/United Kingdom in FY 1996. Bingaman Faircloth Kempthorne Byrd Helms Nunn aviation relations was not struck in We will abide by our current arms sales Craig Hollings Smith policy and, though we would have preferred London last week. Once again, I believe restoration of full IMET, will fund only Ex- So the bill (H.R. 1868), as amended, the British Government put the inter- panded-IMET during the coming fiscal year. was passed. ests of one constituent above the best I hope this information will be useful to Mr. McCONNELL. Mr. President, I interests of British consumers. you. Please do not hesitate to contact us if want to take one moment to thank The United Kingdom is one of our we may be of further assistance. Tim Rieser and Luke Albee of Senator largest and most important trading Sincerely, LEAHY’s staff; and from the Appropria- partners. For many years that trading WENDY R. SHERMAN, Assistant Secretary, Legislative Affairs. tions Committee staff Jim Bond, and relationship has flourished. Open mar- Juanita Rilling; and, particularly, Mr. ket principles have been the engine re- ORDER OF PROCEDURE sponsible for its success. Without a Mr. DOLE. Mr. President, this will be President, I want to extend my great doubt, the free flow of commerce be- the last vote tonight. Tomorrow morn- appreciation to my personal staff mem- tween our two nations has signifi- ing, starting at 9:30 we will take up the bers, Billy Piper, and my long-time for- cantly benefited both economies. Per- MilCon conference report, to be fol- eign policy adviser, Robin Cleveland, haps the biggest winners of all have lowed by the D.C. appropriations bill, for their determined work in helping us been consumers on both sides of the to be followed by the legislative appro- to produce this bill. I am extremely grateful to Billy, par- Atlantic who have reaped the benefits priations conference report. Therefore, ticularly to Robin, for good advice not of enhanced consumer choice and com- I would expect one, two, three, and only on this occasion but over the petitive prices. maybe one amendment on the D.C. bill, years. Regrettably, over the last few dec- so maybe four votes tomorrow. We Mr. President, I yield the floor. ades, the British have repeatedly should finish early. Then I will tell you Mr. LEAHY. Mr. President, I thank rebuffed our attempts to extend our what will happen next week. Hopefully, the chairman for his gracious words, open trade relationship to include com- we will finish those bills and take the and I was also glad—I mentioned a mercial aviation rights. In fact, the next week off. But we are not there number of these folks earlier—but I United States/United Kingdom bilat- yet. eral aviation agreement is our most re- The PRESIDING OFFICER. The was also glad to have my chief of staff, strictive international aviation agree- question is on the engrossment of the Luke Albee, to join us also on this bill, ment. For good reason, that agree- amendments and third reading of the as well as John P. Dowd, my legislative ment, the so-called Bermuda II agree- bill. director. The amendments were ordered to be Tim Rieser, I think all of us on our ment signed in 1977, is widely regarded engrossed and the bill to be read a side will agree, was a dynamo. Tim as being the high water mark for inter- third time. handled just about everything for ev- national aviation protectionism. The bill was read a third time. erybody. In London last week, the United The PRESIDING OFFICER. The bill I do appreciate all of them. States and United Kingdom had an his- having been read the third time, the Mr. President, before we voted ear- toric opportunity to further liberalize question is, Shall the bill pass? lier, the Senator from Wisconsin was our aviation relationship. Instead of Mr. McCONNELL. Mr. President, I going to speak in relation to this mat- taking a major step forward, United ask for the yeas and nays on the bill. ter on this bill. As a courtesy to the States/United Kingdom aviation rela- The PRESIDING OFFICER. Is there a other 99 Senators, he withheld for the tions seem to have taken a giant leap sufficient second? vote on the assurance that he could be backward. I am very concerned that There is a sufficient second. heard. I hope that it might be possible the failure to reach agreement last The yeas and nays are ordered, and for the Senator from Wisconsin to be week has squandered hard earned mo- the clerk will call the roll. heard. mentum from the phase 1 deal in June The legislative clerk called the roll. I assume we will appoint conferees. I and resurrected mistrust between the The PRESIDING OFFICER (Mr. wonder if we could yield for that. countries that has plagued negotia- SMITH). Are there any other Senators Mr. BENNETT. Mr. President, I move tions for years. in the Chamber desiring to vote? that the Senate insist on its amend- Mr. President, despite these con- The result was announced—yeas 91, ments and request a conference with cerns, the United States and United nays 9, as follows: the House, and that the Chair be au- Kingdom must press forward with

VerDate Aug 31 2005 06:56 May 28, 2008 Jkt 041999 PO 00000 Frm 00089 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S21SE5.REC S21SE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S14082 CONGRESSIONAL RECORD — SENATE September 21, 1995 phase 2 negotiations. We owe it to con- everyone in our industry is mesmerized by turning employees into owners? As Peter sumers on both sides of the Atlantic. the growth in air traffic. That kind of look- Drucker has observed, the only sustainable For far too long the United States/ ing inward—that fixation on ourselves—is a corporate advantage in the new, open, global United Kingdom aviation debate has kind of corporate indulgence we can’t afford: marketplace—is people. Short-term gain for long-term grief. When we entered into our employee-owner- focussed primarily on the interests of I came here to make the case for change in ship (ESOP) agreement, we were banking on passenger and cargo carriers. I urge ne- focus—for a renewed concentration on the more than a structural shift in our organiza- gotiators on both sides of the table to customer. tion—we were counting on a change in cor- resume talks with a broader focus, one We’re slow to recognize what the customer porate culture to take us to a more competi- which considers the significant stake wants from the travel experience. tive level. And in a service industry, em- consumers have in enhanced air service Back on my side of the ocean, the travel ployee satisfaction shows—in the finished and more competitive prices. agents are fighting with the airlines...the product—in the face we present every day to airlines are fighting with one another...and our passengers. In a speech before the Aviation Club meanwhile, the customer stands alone at the And we’re seeing that change in culture of Great Britain earlier this week, Ger- counter. translate into strong results. You’re used to ald Greenwald, the Chairman and CEO It’s as if we grow so accustomed to our hearing about Returns on Investment—well, of United Airlines, echoed this point. place in the market—to our sheer size and our ESOP’s delivering what I call Return on Mr. Greenwald called for a ‘‘renewed staying power—that we forget who has the Ownership: concentration on consumers’’ and quite power to bring us down. Fewer sick days: Down 21 percent last accurately observed that the real los- I’m not talking about a competitor...or month—in our year-over-year comparison. another company...or some amorphous no- ers under the restrictive Bermuda II And increased ‘‘dependability’’ means a sav- tion such as ‘‘competition’’ ... ings of about $52 million. agreement are consumers ‘‘in the I’m talking about the consumer. The most Fewer grievances: Down 75 percent year- United States and United Kingdom powerful economic factor in the world. over-year. And again—that’s an opportunity alike.’’ He is absolutely correct. It’s a concept we grasp quite easily in po- to resolve differences without costly and I ask unanimous consent that Mr. litical dimension. But the freedom of choice time consuming procedures—energy that Greenwald’s speech before the Aviation at the ballot box has its parallel in the econ- could be spent on serving our customers. Club of Great Britain to which I re- omy as well: In every consumer’s checkbook Overall, it’s part of the positive numbers choice—the freedom to take his or her busi- United’s putting on the board: ferred be inserted in the RECORD at the ness elsewhere. Revenue is up $729 million—6.7 percent conclusion of my remarks. Now, provided we put the customer first— over last year. Mr. President, I hope benefits to con- the fundamentals are in place for a very Operating earnings are up—our operating sumers are factored into the equation positive forecast. Consider the state of our margin is up. So are net earnings and net next time American and British nego- industry. margin. And unit revenue is outpacing unit tiators meet in phase 2 talks. Perhaps The fundamentals are there for a very posi- cost. then the need for liberalization of the tive forecast. Consider the state of our indus- Let me give you just one market example. United States/United Kingdom bilat- try. Thanks in part to our new Shuttle by In the beginning of this decade, in 1990, United, the Los Angeles region is solidly eral aviation agreement will be clearer worldwide airline revenues totaled $211 bil- profitable. to the British. Undoubtedly, the bene- lion. Our departures are up 73 percent in the last fits of liberalization will be more read- Estimates now predict industry revenues— 4 years—and we’re serving more major do- ily apparent. both business and leisure travel—will reach mestic and international destinations from There being no objection, the speech $350 billion by the year 2000. L.A. than any other carrier. was ordered to be printed in the To put that in perspective, consider the All of the changes we’ve made within our RECORD, as follows: world’s total GDP will rise 50 percent be- company are moving us in the right direc- tween 1990 and the year 2000. Over that same tion. But there’s still the matter of the envi- GERALD GREENWALD; AVIATION CLUB OF timeframe, airline revenues will rise an even ronment around us—the system in which GREAT BRITAIN, CHAIRMAN AND CEO, faster 60 percent. we—and all our competitors—have to oper- UNITED AIRLINES All told, it’s an impressive record. A cen- ate. LONDON—September 19, 1995. Thanks, all of tury that began with mankind’s first pow- And that is where external factors dictate you for this warm welcome. Let me salute ered flight—a span of 120 feet lasting 12 sec- the difficulties we face—in the form of a sys- Allan Winn, Chairman of the Aviation Club onds—ends with the movement of 1.2 billion tem that stops us from serving our cus- of Great Britain, along with the many lead- passengers on 17 million flights across 24 tomers as well as we could. And that system ing lights of Great Britain’s aviation indus- time zones at every hour of the day and is my subject today. try—public and private sector alike—whom I night. What do I mean? Let me ask: How many of am honored to address today. So if all of that’s true—and it is—why do us would maintain a fleet of DC–7s or Lock- I promised Allan I would refrain from any so many of us want to grimace rather than heed Constellations—how many of us would ‘‘commercial’’ plugs for my company, al- grin? want to sell passengers on the virtues of an though temptation, of course, is great. But Because we know the rest of the picture. 15 hour crossing of the Atlantic, or only a Allan was kind enough to ask—as people We know that revenues, however great, are handful of domestic flights to our country’s often do when a visitor arrives—how was my not profits—and growth, no matter how largest cities? trip? rapid, is not necessarily a reflection of suc- In other words, how well do we think we’d I want to assure you: The flight over in cess or superior service. fare with a 1950’s fleet in our 1990’s world? United’s new 777 was quite comfortable. I en- Granted, this industry has grown. But too Yet we’re struggling along with an equally joyed the full 64 inches of leg room, the five many airlines have lost too much money for antiquated structure governing our flights/ star first-class service—and what must be their shareholders and the taxpayers who our routes/and our schedules. Simply put: the most courteous flight attendant and support them. Too many customers regard The structure of our industry is not adapting pilot crew in the business. what they get from us with a combustible to the needs of the new customers, new na- So Allan—thanks for asking. combination of cynicism and suspicion. tions, and new regions we serve. I appreciate the opportunity to address Some of our passengers take us for grant- If this industry is to reach its potential— you today. I see this as a chance to advance ed. Other passengers think every time they if we are to continue not simply to expand a dialogue that must take place if any of us, buy a ticket—as we say in America, we’re but to excel—we have to change. We have to on either side of the Atlantic, are to prosper taking them for a ride. raise our standards—raise our own expecta- in our new environment. This industry has It’s hard in that kind of atmosphere to tions to a level above and beyond that of the to look ahead—this industry has to change build the bonds of trust—to establish the customers and the countries who rely on us. because its growth—needs to outpace that of loyalty that keeps customers coming back. We have to stop talking about today’s the world economy. That’s the central challenge in a service in- weather and create a new climate. The fact is, at no time since the Second dustry such as ours—a challenge United is Because in the end, there is only one route World War has the airline industry been pre- working to meet as the world’s largest em- to customer service—and that is competi- sented with market forces more conducive to ployee-owned company. tion. profitable growth. The demand for thinking And we are a new company—a new Nothing could be further from that ideal for the future is almost overwhelming. And United—since Steve Wolf stood before you than our present World War II vintage sys- that is what I want to talk about today be- just over a year ago. What we’re about isn’t tem of bilateral regulation. Created in an era cause, as an industry, we are not meeting the just a phrase—it’s a deep-felt philosophy: A when national frontiers were also market challenge, not doing justice to our cus- solid sense that of all the measures manage- boundaries—when economies were isolated tomers. ment can take to improve productivity none entities, self contained islands of com- But I didn’t come here to talk to you about has more up-side potential than empowering merce—Conceived at a time when Churchill what everybody else talks about—the way our workforce. And what better way than roamed Number 10 Downing Street, and both

VerDate Aug 31 2005 06:56 May 28, 2008 Jkt 041999 PO 00000 Frm 00090 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S21SE5.REC S21SE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS September 21, 1995 CONGRESSIONAL RECORD — SENATE S14083 the Democrats and Republicans were com- of the different companies that carries the try’s interest. Liberalization and inter- peting to see who ‘‘liked Ike.’’ signal or routes the call. nationalization go hand in hand. And they Our bilateral system was a Frankenstein, It doesn’t matter to you whether it crosses are essential in today’s economy. stitched together when colonialism was fad- the ocean floor by cable or skips over by sat- And that really is my message today. ing, nationalism was coming to the fore—and ellite—what you care about is getting Gone are the days when we could chart a a protectionist system of managed trade through to the other end. Yet our current future built on cozy arrangements and back- seemed the best we could muster. system of air travel does just that to our room bilateral deals. The one covenant that And that bad beginning got steadily customers—confronting them with a bewil- counts—is the promise we make to the peo- worse—reaching bottom with the so-called dering array of barriers and bottlenecks be- ple we serve. Bermuda II agreement in 1977. tween them and their destination. Thank you. To their credit, both the U.S. and Britain It’s a wonder the system served us as well f as it did, as long as it did. have recently taken significant steps toward Today—we must all agree—the system is the liberalization of air transportation be- MESSAGE FROM THE PRESIDENT slowly strangling us. tween our two countries. The differences A message from the President of the seem to be over the pace of that movement, What we have now is a kind of controlled United States was communicated to chaos—an industry impasse in which no one not the ultimate objective. is comfortable with the system as it is, but And, as I have pointed out to the U.S. gov- the Senate by Mr. Thomas, one of his no one can make the move to the more com- ernment, in recent months—to give credit secretaries. petitive system we need. where credit is due—it has been the British f Take United’s position as a case in point, side that maintained the momentum toward squeezed by the straight-jacket we call Ber- liberalization, while the U.S. (and United) EXECUTIVE MESSAGE REFERRED muda II. Geographically, the U.K. is key to was all but immobilized by our own internal As in executive session the Presiding United: A gateway to the entire continent of squabbles. To be candid, our struggle to launch direct Officer laid before the Senate a mes- Europe—and beyond, a critical crossroad in sage from the President of the United the global aviation market. Chicago-London service last week was im- While we are one of only two U.S. carriers peded as much by vested interests in the U.S. States submitting a nomination which allowed to serve Heathrow, if we look at as in the U.K. was referred to the Committee on United’s major hubs in the U.S.—every one Now of course, our small steps forward Armed Services. carries tight restrictions on capacity to have been accompanied by two steps back— (The nomination received today is Heathrow: away from the negotiating table. We must printed at the end of the Senate pro- At Washington, DC, we have been running all hope our two governments get back to ceedings.) load factors to Heathrow of 92 percent for the table—and resume the Phase II talks f the last three months—and yet we were just that are the only path to progress and to turned down for two extra frequencies a open skies. REPORT ENTITLED ‘‘HIGHWAY There is a mystery I cannot comprehend: week. And that is how the U.S. and the U.K.—two SAFETY: 1994’’—MESSAGE FROM At Chicago, our largest hub, after a four- THE PRESIDENT—PM 83 year struggle, last week we finally gained ac- countries that literally live by international cess to Heathrow—and yet it’s limited to trade—and with the possible exception of The PRESIDING OFFICER laid be- seven weekly flights in a 767. Let me empha- Japan, endure the rockiest bilateral rela- fore the Senate the following message size—this is from the world’s busiest airport tionship in the aviation industry. from the President of the United The plain fact is—liberalization can’t be to the world’s largest international destina- limited. On the other side of the world—as States, together with an accompanying tion. But even that is better than Denver, across the Atlantic—the principle of con- report; which was referred to the Com- our second largest hub—where we can pro- sumer choice must prevail. The principle I mittee on Commerce, Science, and vide no service at all to Heathrow. Of all the hope will soon be put in practice for our two Transportation. major country-to-country agreements to countries should apply equally to the open- which the U.S. is party, none is more restric- ing of new routes in Asia. To the Congress of the United States: tive than Bermuda II. Few tasks will be tougher. Japan’s Min- I transmit herewith the 1994 calendar But as bad as I believe Bermuda II is—this istry of Transportation, for example, seems year reports as prepared by the Depart- much I know: The real losers are the con- fixated on a protectionist path—marching in ment of Transportation on activities sumes. In this, Bermuda II claims its casual- one direction while the rest of the world ties on both sides of the Atlantic—hurting under the Highway Safety Act, the Na- moves in another. tional Traffic and Motor Vehicle Safe- consumers with higher prices and poorer What Japan seems to want in 1996 is a re- service in the U.S. and the U.K. alike. play of the mistake the U.S. and the U.K. ty Act of 1966, and the Motor Vehicle So what’s the solution? Certainly not the made in 1976 when we started down the path Information and Cost Savings Act of 1950’s thinking that argues that the way to of Bermuda II. And as a recent editorial in 1972, as amended. build your carrier’s market share is to hand- the Far Eastern Economic Review noted, you WILLIAM J. CLINTON. icap the competitiveness of the others. can’t open an issue of the Orient Airlines As- THE WHITE HOUSE, September 21, 1995. Market shares in aviation should be driven sociation magazine without finding a list of f by customer choices—just as they are in reasons why competition is bad. most areas of trade today. I submit there is Much of the air service industry there re- MESSAGES FROM THE HOUSE only one answer for the 1990s—working to- mains locked in a mercantilist mindset. And ENROLLED BILLS SIGNED gether for change—working together to open that’s unfortunate because Asia and Asian the skies of Europe, America, Asia and every consumers are not exempt from the adverse At 2:13 p.m., a message from the point in between—to competition. consequences of attempts to limit air traffic. House of Representatives, delivered by Now, I want to be clear: Just as the cur- There’s no free lunch: When Japan’s Min- Ms. Goetz, one of its reading clerks, an- rent bilateral constraints increasingly serve istry of Transportation imposes regulations nounced that the Speaker signed the no one—competition, too, has its costs. Not to protect their carriers—consumers pay the following enrolled bills: all airlines will succeed—not all will even price. It’s an iron law of economics: One S. 464. An Act to make the reporting dead- survive. But the alternative—the price of company’s windfall is the consumer’s down- sticking with the status quo—is truly like lines for studies conducted in Federal court fall. demonstration districts consistent with the two scorpions in a bottle. Neither will come Competition is consumer friendly. It’s a deadlines for pilot districts, and for other out alive. notion we haven’t quite grasped yet. Take purposes. Why tinker at the margins managing the recent positive steps toward opening S. 532. An Act to clarify the rules gov- trade? Why not simply throw open the more Japan destinations to Federal Express. erning venue, and for other purposes. doors—and let the competition begin? In the industry, people are asking—Who Anything less than full competition really won? Japan or the U.S.? I’ll tell you who At 5:45 p.m., a message from the doesn’t do either of us a favor—because in an won. The consumers—of both countries! industry as global as ours, we really can’t As for United, we’re ready right now to House of Representatives, delivered by hide from competition anyway. take interim steps toward the broad liberal- Mr. Hays, one of its reading clerks, an- What do we need? Liberalization—as much ization that will ultimately serve all of us nounced that the House has passed the as possible, as soon as possible. A beginning best. In Japan, as we did in Germany, we are following bill, in which it requests the today that we can build on tomorrow. prepared to accept a period of constrained concurrence with the Senate: As our target, we ought to take an example growth—to give JAL breathing space. But H.R. 1617. An Act to consolidate and reform from outside our industry: From the world of our ultimate aim at the end of that period workforce development and literacy pro- telecommunications. When you pick up a must be—once again, as it was in Germany— grams, and for other purposes. telephone and dial an international number a market driven regime. or send a fax to an international destina- In the end, freeing up competition—evolv- The message also announced that the tion—you don’t want to negotiate with each ing an open skies approach—is in every coun- House insists upon its amendments to

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