FOR IMMEDIATE RELEASE

July 26, 2000

CONTACT:
Eric Thomas
Pete Kasperowicz
202/822-9491

USA*ENGAGE Praises Greenspan Comments on Engagement and Shares His Concern about Thompson Amendment

Washington, D.C. - USA*ENGAGE today praised Federal Reserve Chairman Alan Greenspan's statement that engaging foreign countries is the best way to ensure improved economic and social policies in those countries. In a hearing before the Senate Banking Committee on July 20, Greenspan said he is concerned about an amendment sponsored by Senator Fred Thompson (R-TN) that would impose unilateral sanctions on China, Russia and North Korea if they are found to be involved in weapons proliferation.

"I think it's very much to our advantage to significantly increase involving them in free trade, open market economics, and basically the type of dynamics which raise standards of living, and I think ultimately create significant changes in societies," Greenspan told the Committee. "The only thing that strikes me as a reasonable expectation is it [the Thompson amendment] can harm us more than it would harm others. And therefore I must say, Mr. Chairman, I do join you in your concerns about that amendment."

Frank Kittredge, Vice Chairman of USA*ENGAGE and President of the National Foreign Trade Council, said Greenspan's comments are "important and timely," and hoped that they would help convince members of Congress that the Thompson amendment should be rejected.

"We urge the Senate to heed Mr. Greenspan's warning," Kittredge said. "No one doubts that non-proliferation is in the highest U.S. national interest. We must, however, choose effective methods to deal with it. The Thompson amendment would not be effective."

USA*ENGAGE is a coalition of 670 small and large businesses, agriculture groups and trade associations working to seek alternatives to the proliferation of unilateral U.S. foreign policy sanctions and to promote the benefits of U.S. engagement abroad. For more information on USA*ENGAGE and the harmful effects of unilateral trade sanctions, visit the USA*ENGAGE web site at www.usaengage.org.

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