Thomas Hoover - The samurai strategy

Whereupon Jack received the first whoosh of what soon blossomed into a roomful of aerosol bullshit. Noda started with some malarkey about the great tradition of economic cooperation between our peoples, advanced to balderdash about Japan's desire to share her resources with the world's less fortunate, then outdid himself with triple-distilled crapola about the timeless trust and regard his country's ordinary citizens cherished in their hearts for our Christian nation (which had merely torch-bombed and nuked them a few decades past). Worst of all, Jack had to sit there and listen. I've never seen the guy so uncomfortable.

Clearly Noda intended to give him pure tatemae – soothing generalities that added up to zip. The man was, by God, going to do exactly what he wanted, all of which was perfectly legal, so he didn't really see any point in drawing a picture for the U.S. Senate.

Finally Jack just closed his notebook. "Let me put this differently. I understand that your objectives are not merely acquisition, but also an attempt to rejuvenate U.S. business. Beginning, I take it, with the lackluster segments of our high-tech sector?"

"We hope to offer suggestions from time to time that may prove helpful." Noda just sat there like a sphinx. "Perhaps I can offer an example. As you doubtless know, Senator, Japanese firms build plants overseas these days primarily to be more competitive in those foreign markets. You Americans, however, are moving your manufacturing abroad now mainly to compete with foreign goods here it home in your own market. You appear to think it as comparable, but of course it is not. What you are doing is exporting your own jobs. Your strategy is defensive, ours is offensive."

Jack looked him squarely in the eye. "Quite frankly I must tell you that not everyone in Washington these days trusts Japan's 'offensive' in international trade. I for one would be very interested in knowing exactly why Japan has chosen to invest billions of dollars in keeping America's manufacturing alive. Particularly when so much of it is competitive with your own."

"Yes, Senator, I realize you Americans prize frankness." He wasn't giving an inch. "Very well. Quite honestly, no one in Japan believes it is in the interest of the Free World to allow your industrial base to continue its current decline. Our economic condition is linked to yours, like the vital organs of Siamese twins. We cannot afford to let you atrophy. For one thing, you are our only defense shield, since we have none of our own. I might also add, though it is a comparatively lesser concern, you are Japan's primary customer."

"So what you're proposing-if you'll permit me to paraphrase-is to take certain of our strategic industries, the ones in trouble, by the neck and institute the management, investment, and research necessary to keep them competitive."

Noda just smiled. "Dai Nippon expects to offer occasional advice in the spirit of friendly cooperation. Which is why," he went on, "I am so happy to have this opportunity to review our program with someone such as yourself. Your understanding of America's industrial malaise has not gone unnoticed by those Japanese who take the longer view, who worry about world economic stability."

Jack tugged at his silk tie and nodded his thanks. Then Noda continued.

"You will be pleased to know I have been in contact with the Japanese trade organizations that have political action committees, or PACs as you call them, in Washington. Last year we distributed over fifty million dollars… at least if you believe the Senate Foreign Relations Committee's staffers… in an effort to clarify misunderstandings about Japan's trade and investment position here." He smiled. "That averages out to about a million dollars per state, to take a somewhat clinical view. Of course I will try to use my influence to see what our PACs can do to help you next fall."

"Mr. Noda, your expression of support is, naturally, appreciated." Jack was turning politician again. "However, you should be aware of Section 441(e) of the Federal Election Campaign Act, which states that 'no foreign national shall make a contribution, or an implied promise to make a contribution, in connection with any federal public office.' I don't think this discussion is proper."

"That law says nothing about PACs of duly incorporated American subsidiaries of foreign-owned organizations, Senator. For example, Sony of America and a coalition of Japanese investors recently contributed hundreds of thousands to legislators of Florida and California to encourage the defeat of those states' unfair unitary taxes on foreign-owned companies. Sometimes it's necessary to remind your federal and state governments that Japanese investment can be very problematical in an uncongenial environment." He smiled. "Americans investing overseas have a long history of making their interests known to those governments; why should Japanese businessmen be expected to do otherwise?" All of a sudden Noda glanced at his watch, rose abruptly, and bowed. "Well, the afternoon seems to have gotten away from us. I wish you to know I am extremely honored you've taken time from your undoubtedly busy schedule to visit with us, Senator. It has been most pleasant."

He shook hands with Jack as he continued. "Of course I have not yet had the opportunity to review the thinking of the man expected to oppose you in next fall's senate contest. I believe he is Representative Mark Reynolds, is he not?"

Jack's polite smile sort of froze on his face.

"But, I'm sure I will," Noda proceeded blandly. "Again let me stress that voices such as yours are important. There are so few opinion-makers in America, individuals such as Dr. Richardson and yourself, who have the receptivity to appreciate the importance of Dai Nippon's program and its objectives."

I quickly offered to show the distinguished senator to the door, hoping I wouldn't need that Christmas-gift dog muzzle. He was still closing his briefcase as we passed the guards, a couple of guys who looked like the heavies in an old Bruce Lee karate epic. Click, we were on the elevator, click, we were headed down.

"Good Christ!" He exploded. Before he could say anything else, I waved for silence. Around here the walls probably had ears. (Shortly thereafter I discovered I'd underestimated even that.)

In minutes we were on Third Avenue, autumn wind in our hair, with O'Donnell positively awestruck by Matsuo Noda's balls.

"Matt, did I hear what I thought I did?" His eyes were grim.

"That he's got X million bucks that say you get retired if you fuck with him?"

"My reading was, I play ball with him and his crowd and he'll write a blank check for my campaign next year. I cross him and I'll be watching the Mark Reynolds show every night on prime time right through election day." He was livid. "Matt, take my advice and get out of this thing. That bastard thinks this country's for sale. If he expects me to run interference for him on the Hill while he gears up for World War Three, he's making a big mistake."

"Jack, I can't quit now. Who else is going to keep an eye on this guy? Besides, he'd never let me. I know too much."

"So what? He's got to be stopped."

"Look, if you're so worried, then deliver a major speech on the Senate floor. About all these Japanese billions rolling in, absorbing companies, with a lot of samurai fanning out to take names and kick ass across the boardrooms of America. It ought to get picked up by the Nightly News. Then we'll see what the country wants to do about it."

The problem, obviously, was what could the country do about it. And more than that, where would it eventually lead? Did anybody-Tam Richardson included-seriously believe this was merely a temporary helping hand? History had a practice of going in one direction-forward. So after Noda had acquired a lot of our high-tech outfits, maybe even kept them from going the way of Mostek and others, what next? More and more I was beginning to wonder if this was really preferable to our blundering along as best we could on our own.