Tucker, Peter Viles, Casey Wian, Jamie McIntyre, John King
xfdce CNNfn-LOU-DOBBS-TONIGHT-01
Show: LOU DOBBS TONIGHT>
Date: December 11, 2003>
Time: 18:00:00>
Tran: 121101cb.l10>
Type: SHOW>
Head: LOU DOBBS TONIGHT; CNNfn – Part 2>
Sect: Business>
Byline: Lou Dobbs, Peter Viles, Christine Romans, David Grange, Bill
Tucker, Peter Viles, Casey Wian, Jamie McIntyre, John King>
Guest: Guest: Wen Jiabao, Greg Poland>>
Spec: Business; Spec: George W. Bush; Iraq; China; Wen Jiabao;
Immigration; Trade>
Time: 18:00:00>
WEN (THROUGH TRANSLATOR): Firstly, I would like to say that the rapid expansion of trade between our two countries has benefited our two peoples. Twenty-five years ago, trade between our two countries was barely valued at 2.5 billion US dollars. But this year, two-way trade between us tops 100 billion US dollars.
Is it true to say that the development of trade only benefits one country at the expense of the other? Definitely not. Trade between our two countries has brought tremendous benefit to the people of both countries.
We should recognize the fact that the United States does have a sizeable deficit in trade with China. And so in a constructive approach I proposed to President Bush five proposals. Firstly, we seek mutual benefits and win-win results. We should look at the larger picture and larger interests of our trade. For each country, we should not just to consider our own interests, we should also take into account the interests of the other country.
Secondly, we should give priority to development, that is, reducing American imports from China is not a solution. We should expand instead U.S. exports to China. That would require a simultaneous effort by the United States to lift the various restrictions on exporting to the Chinese market.
Thirdly, the two countries should establish and improve a coordinating mechanism for the resolution of trade issues. I proposed this specifically to President Bush to raise the level of our joint committee on commerce and trade. On our side, this committee will now be headed by our vice premier, Mdme. Wu Yi, while on your side, Secretary Evans and Trade Representative Zoellick, will chair this commission.
Fourthly, the two countries should approach trade issues on the basis of equal consultations rather than imposing restrictions or sanctions..
Fifthly, economic and trade issues should not be politicized. President Bush expressed full agreement with all my five proposals. As far as I know, the two sides are making positive preparations for launching the inaugural session of the upgraded JCCT session next spring.
DOBBS: Mr. Premier, your sense of how quickly a trade balance, recognizing all of the elements that you have just enumerated, how quickly do you think a meaningful trade balance can be achieved between China and the United States? WEN (THROUGH TRANSLATOR): I think this will be an objective that would require some time and joint efforts by the two sides. We have demonstrated our utmost sincerity and we are very much ready to increase our imports from your country.
At the same time, we hope that United States will open more to China, especially in the high-tech sector.
DOBBS: President Bush in under considerable pressure, political pressure in the Congress to react with tariffs, to seek a change in the trade balance as quickly as possible, through political means. Do you believe that we will see that trade deficit eliminated to the point quickly enough so that it will not be a political problem for President Bush?
WEN (THROUGH TRANSLATOR): China has adopted active measures to address that. And we will continue to take such measures. The five- point proposal that I just listed represents an effort by senior leaders of the 2 countries to take a strategic look at where we are on this question. And we try to stand on higher ground in looking at these issues.
Naturally this would also require closer mutual understanding between the two countries. I want to point out the fact that the U.S. exports overall increased by 15 percent this year. But in the first 10 months of this year, its trade with China grew by 20 percent, whereas its trade with other countries only increased by about 2 to 3 percentage points. I should also say that the U.S. exports, to China in particular, have increased by fairly big margins. That is my first point.
Secondly, this year China`s total trade, including imports and exports, is valued at about 800 billion US dollars, but our imports have been growing at a pace of more than 40 percent whereas exports only went up by 32 percent.
We also need to keep in mind the fact that when U.S. deficit against China — trade deficit is increasing, China`s trade deficit with other countries in Asia is also increasing. And so there is indeed a structural nature associated with the China-U.S. trade imbalance, and also that is a reflection of shifting commercial patterns and relations among different countries.
Despite that, we will still try to promote a balance in our bilateral trade in an active and positive approach. And our efforts will be applied not just in this time, in this quite extraordinary political time for the United States, but it will be extended for the long term.
DOBBS: Mr. Premier, I just want to say thank you for accelerating the progress toward that balance and accelerating the mutual understanding that`s so important to both our peoples, we thank you very much, Premier Wen.
WEN (THROUGH TRANSLATOR): You can look forward to some measures that China is prepared to take quite soon. Thank you.
(END VIDEOTAPE)
DOBBS: Premier Wen Jiabao.
And turning to the other side of the issue, at least on the subject of Taiwan, despite strong warnings from the new diplomatic partners, Beijing and Washington, the president of Taiwan has refused to make any concessions on his plan to hold a referendum in March. In an exclusive interview with our Mike Chinoy in Taipei, President Chen said he still intends to hold that referendum, demanding China reduce its military threat against Taiwan.
(BEGIN VIDEO CLIP)
CHEN SHUI-BIAN, TAIWANESE PRESIDENT (through translator): We demand that the People`s Republic of China immediately withdraw the missiles targeting Taiwan and also publicly renounce the use of force against Taiwan. This message is very clear. And it certainly has no bearings on the unification or independence issues. And I think the United States government understands this. And it`s very clear that what they are concerned about, what they worry about, would not happen.
(END VIDEO CLIP)
DOBBS: President Chen also said the United States should respect the people of Taiwan and their right to pursue democracy and defend peace.
Coming up next, “Grange On Point.” General David Grange will join me. We`re going to be talking about the Army`s readiness to fight another war, as it continues to fight global terrorism, terrorists and insurgents in Iraq and Afghanistan.
Stay with us.
(COMMERCIAL BREAK)
DOBBS: Our senior Pentagon correspondent Jamie McIntyre has just reported to us that the Pentagon now says a Halliburton subsidiary overcharged the U.S. military by $61 million for gasoline and other items in Iraq.
Turning now to “Grange On Point.” The issue now: Is the Pentagon, and specifically the U.S. Army, ready to fight another war beyond Iraq and Afghanistan? Last week, military officials said two of the Army`s 10 active-duty divisions will be ready for combat in another part of the world next year. Defense Secretary Donald Rumsfeld, however, disagrees with the assessment.
To settle all of that, we have asked none other than General David Grange to join us with “Grange On Point.”
Dave, let me start with a simple issue. With those troops rotating out of Iraq and standing down from somewhere to three to six months, can the United States fight, effectively, a third war?
RETIRED BRIG. GEN. DAVID GRANGE, CNN MILITARY ANALYST: Well, Lou, I believe that the United States can. And it has in the past, even in situations that will be more challenging than the one today.
This is a monumental task, bringing back that size of an Army force, refitting it. There`s a lot of weapons and equipment that`s been ridden hard, some of the same stuff that was used in Desert Storm in `90 and `91. And giving the troops a break and getting them retrained for a different type of mission, possibly, for instance, maneuver warfare, which we experienced in the beginning of Iraq, and not counterinsurgency phase that they`re in now, and get them ready.
But it`s going to take a monumental effort to do that.
DOBBS: And we`re talking about four divisions moving back, standing down, another four divisions rotating into Iraq. And that would leave us, by my count, at least, two divisions.
GRANGE: Well, two divisions. And, again, you`re just — the report only talks about divisions. There`s a lot of separate brigade- size elements.
DOBBS: Right.
GRANGE: There`s a lot of support, combat support, service support elements. So there`s a lot of people involved in this equation.
And it`s probably — this hasn`t been done at this size for years, this amount of trade-out at the same time still conducting a war.
DOBBS: One spokesman for the Pentagon saying that, of course, there are risks in this, but they are manageable risks. Are these the kind of risks, manageable or otherwise, that a superpower, the world`s only superpower, spending $400 billion a year in its budget, should have to take on?
GRANGE: Well, it has to take on because the size of the force.
And to have the military, the quality of the military that we have today, it costs money. There`s no — there`s no way to cut corners on it. Lives are at stake. Obviously, national security is at stake. And this is a military that, the readiness reports, the risks that we`re talking about here, things are — some things are measurable, like the number — amount of the equipment you have, the number of troops, the type of troops.
The intangibles, family readiness, morale of troops, those type of things are hard to measure. And so, the risk involves many factors. And it`s all about the risk management in a situation like this.
DOBBS: Risk management is one of those things I get a little nervous about when I hear the Pentagon talking about it, because the risks that, in this case, are not national security risks or military risks. They are actually organizational risks and readiness risks, in effect.
General, let`s talk a lot more about this, because we know that there`s going to be a lot more talk about it in Washington as well.
General David Grange, thanks, as always.
GRANGE: Thank you, Lou. To be continued.
DOBBS: Absolutely.
Coming up next: “Exporting America.” Tonight, we continue to update you on the list of American companies we have confirmed to be sending jobs, American jobs, to cheap overseas labor markets.
And then your thoughts, including some advice on how the middle class can fight back against what some of you see as a very, very big squeeze against the middle class in this country — that and a great deal more still ahead.
Stay with us.
(COMMERCIAL BREAK)
DOBBS: Taking a look now at some of your thoughts.
From Mesa, Arizona tonight: “The American middle class is being lost. Jobs are being exported. Illegals flood our domestic labor pool and deny gainful employment to legal citizens of this country. It is time for the American middle class to express themselves economically and verbally and purchase only those products labeled made in America by American workers” – – Larry Stephenson.
And on “Broken Borders,” from Evergreen, Colorado: “How dare Tom Ridge entertain the notion of amnesty for people who broke our laws specifically knowing our U.S. borders are a joke. Ridge needs to resign” — Jan Herron.
From Chicago, Illinois: “Regarding the remerging controversy about not allowing our nonparticipating allies to participate in Iraq rebuilding contracts and the threat of not forgiving Iraqi loans by these allies, perhaps they should be reminded they still owe the United States for the Second World War” — Roger Flammang.
From Boulder Creek, California: “President Bush stated that only countries that risked their lives should get the contracts. The soldiers risking their lives in Iraq are not employees of Halliburton and will not be making money off the occupation” — that from Mark DiPietro.
And from Butler, Pennsylvania: “Tell me again why it`s safe for the government to purchase flu vaccines in a foreign country, but it`s not all right for senior citizens to purchase their drugs in Canada” — John West. And on “Exporting America,” from South Elgin, Illinois: “Lou, if the experts are blaming the job problems on this supposed global economy, then why aren`t the jobs of our elitist corporate leaders offered to their foreign competitors? I`ve got to believe they`re just as capable of doing the job, and for only a fraction of what some CEOs are making here” — Fred Siena.
We love hearing from you. E-mail us at LouDobbsCNN.com.
Now “Exporting America.” Each night, we update our list of U.S. companies exporting American jobs overseas, choosing to employ cheap foreign labor instead of American workers. We confirm the thousands of notifications we receive from you. And it is a process that is taking a while, because there are a huge number of companies that we are checking.
The companies confirmed now in yellow, as of today, these are the additions: 3Com, Fidelity Investments, International Paper, Lillian Vernon, Mattel, Mellon Bank, and Sapien (ph).
Keep sending the names of those companies you know to be exporting jobs to cheap foreign labor markets. The e-mail address, LouDobbsCNN.com. And we will continue to update and report them here each evening right here.
On Wall Street today, the Dow above 10000 for the first time in more than a year and a half, the Dow jumping 86 points. The Nasdaq rose almost 38. The S&P gained 12.
No one is more excited about this than Christine Romans.
(LAUGHTER)
DOBBS: She`s here with that and quite a few developments in corporate crime.
CHRISTINE ROMANS, CNN CORRESPONDENT: Well, Lou, a rally in stocks, but the wreckage of two years of corporate scandals still strewn about Wall Street and corporate America.
The Justice Department says KPMG is stalling an IRS probe into tax shelters. It says KPMG has demonstrated a concerted pattern of obstruction and noncompliance, threatening the integrity of an IRS investigation. KPMG claims it did not push these tax shelters, has claimed that for some time. But the government says there`s literally thousands, volumes of evidence in KPMG files to the contrary, Lou.
DOBBS: Well, we know what happened to that other accounting firm, Arthur Andersen. This is also obstruction of justice, right?
ROMANS: Absolutely. Well, two years later
(CROSSTALK)
DOBBS: The allegation of it, at least.
ROMANS: The allegation is very similar to the Andersen allegation, yes.
DOBBS: And two attorneys generals getting tough on those mutual funds.
ROMANS: Absolutely.
Today, it was Massachusetts charging Prudential Securities with massive late trading, Lou, of mutual funds on behalf of its hedge fund customers, 1,100 trades in 2.5 years, netting $162 million. And source close to the negotiations says Alliance Capital is offering to cut its mutual fund fees as part of a settlement with New York Attorney General Eliot Spitzer over improper trading in Alliance funds.
And, Lou, from the trading floor to the executive suite, something is seriously awry with executive pay and executive paychecks have eroded public trusts in capitalism. So concludes the trade group that represents board members. The National Association of Corporate Directors says, boards need to spell out how and why executives are being paid and the pay plans should be kept as simple as possible.
So still not giving any complete concrete guidelines as to what is fair compensation, though, so no new ground broken there.
DOBBS: Not even like something between the average pay being something less than 1,000 times for the CEO?
ROMANS: No, no guidelines like that.
(LAUGHTER)
DOBBS: Thanks, Christine.
Coming up next, “America Works.” Tonight, we introduce you to a train conductor. She`s helping keep America on the right track.
Stay with us.
(COMMERCIAL BREAK)
DOBBS: “America Works.” Tonight, we want to introduce you to a lady who`s worked hard for more than a quarter-century on one of this country`s most busiest railroad lines.
Peter Viles has her story.
(BEGIN VIDEOTAPE)
CARLQUIST: Tickets onto Fordham. Fordham tickets, please.
PETER VILES, CNN CORRESPONDENT (voice-over): The Metro North railroad, a quarter of a million passengers a day and no one thanks them as often as Sharon Carlquist.
CARLQUIST: Thank you so much. That`s your return. So don`t lose that. You`ll need that for coming back. VILES: Sharon is a special duty traveling conductor, which means she wears a bunch of hats, conductor, ticket taker, liaison between labor and management, all around troubleshooter.
CARLQUIST: I do try to give them a good, comfortable ride. And if that`s telling somebody that`s speaking very loudly on their cell phone, hey, you need to quiet down a little bit, we don`t all want to hear your conversation.
VILES: Her career is a minor miracle. For 26 years, she`s put up with cranky commuters.
CARLQUIST: Can we move these belongings right over here? OK.
VILES: And yet, she still has her Midwestern manners and common sense.
CARLQUIST: I`m from Missouri. And I`m very conservative. And I grew up knowing right and wrong.
VILES: Wrong, in Sharon`s book, taking up more than one seat on a train, not saying please and thank you, not giving your all at work.
CARLQUIST: It`s so, so important to have a smile on your face, to have a good, upbeat demeanor and a positive attitude.
VILES: How is this for positive attitude?
CARLQUIST: Long time no see!
UNIDENTIFIED MALE: How you doing?
CARLQUIST: I`m fine. How are you?
UNIDENTIFIED MALE: All right.
CARLQUIST: Good.
This is Joe the tailor. Don`t I look spiffy?
This is Sean Chaw (ph). And she taught me CPR earlier this year.
VILES: If you can keep up with her.
CARLQUIST: Hold that elevator.
VILES: You`ll find she`s old-fashioned, proud of her railroad and proud of her office. But who wouldn`t be proud of Grand Central Terminal?
(on camera): Why do you think you like your job so much?
CARLQUIST: Well, I`m a very energetic and upbeat person. And I just love what I`m doing. Look at the surroundings here. Look at the beautiful place that I work in.
VILES (voice-over): Peter Viles, CNN, New York.
(END VIDEOTAPE)
DOBBS: A perfect setting.
That`s our show tonight. We thank you for being with us. For all of us here, good night from New York. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
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