A Wake-Up Call For American Businesses

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A Wake-Up Call for American Businesses @ by Pat Choate (NAPSA)—U.S. military forces are increasingly dependent on for- eign suppliers for much of their equipment and key components. Many of those sources cannot be relied upon in war times. During the Iraq campaign, for instance, U.S. forces made extensive use of the Boeing Company’s = smart bombs, known ! as Joint Direct = Attack Munition (JDAM). Micro Crystal, a European company, supplied HonChoate eywell Inc. with the crystals it needed to build guidance systems for the Boeing weapon. Many Europeans opposed America’s actions in Iraq. The Boston Globe ““US-Made Measure Sparks Debate,” 6/20/03) reports that the Swiss industrialist who controls Micro Crystal ordered the company to halt shipments to Honeywell. It did. A Swiss spokesperson said the industrialist acted for “personal reasons.” Fortunately, Honeywell found an alternative supply. But as House Armed Services Chairman Duncan Hunter (R-CA) said: “The incidentis a ‘wake-upcall.” Indeed, it is a big and loud wake-up call. The U.S. China Economic and Security Review Commission reports that the United States is increasingly dependent on China for many of its most important Advanced Technology Products, many of which are defense-related. Of the U.S.-China trade in these 500 types of high-tech goods, the United States has a trade deficit in more than half. The American Electronics Association reports (Tech Update 2003) that China is now the United States’ largest supplier of all hightech goods. For decades, the United States has safeguarded its defense capabilities with legislation that requires certain vital equipment and components be purchased only from factories operating inside the United States. Under the pressure to get the cheapest components anywhere they may be found, some major U.S. defense contractors want those “Buy America” laws weakened. Chairman Hunter has sponsored legislation, now approved in the U.S. House of Representatives, to expand the “Buy America” provisions. Soon, the U.S. Senate will also vote on whether to weaken or strengthen those statutes. We think that a secure America depends on secure domestic supplies for U.S. Armed Forces. We think manufacturing in America matters. Mr Choate is director of the Washington, D.C.-based Manufacturing Policy Project.