' PASTOR GENERAL'S TO THE MINISTRY OF THE REPORT WORLDWIDE CHURCH OF GOD

VOL.7. N0.15 PASADENA. CALIFORNIA APRIL 11. 1985

FROM MINISTERIAL SERVICES

We of the Auditorium PM congregation had a very moving and meaningful Pass- over service with Mr. Herbert Armstrong leading, and Mr. Ellis La Ravia and me assisting him. Then, in the afternoon of the first day of Unleavened Bread, Mr. Armstrong gave a powerful and encouraging sermon in the Audito- rium. Audiotapes of that message will be mailed out to be played in all churches. I'm sure the brethren will appreciate hearing from Mr. Armstrong once again.

It seems that our rapidly advancing technological age raises new questions on occasion. One question that many have been asking recently is whether it would be appropriate to videotape the wedding ceremony. In discussing this question with Mr. Armstrong, he gave the following principles:

1. The wedding ceremony should not be disturbed in any way. If video- taping is done, it must be done quietly and without distractions. The same applies to taking photographs. There should be no flash photo- graphy nor other distractions during the ceremony itself. Any photo- graphy must be done quietly and without the photographer moving around. Of course, flash photography before and after the ceremony would be fine.

2. Audiotaping the ceremony is also fine, as long as it too is done quiet- ly and without bulky equipment, or equipment and cords located in conspicuous places. There should be no clicking of automatic shut- offs or ejecting and turning over of cassettes.

3. The prayer is an especially sacred part of any ceremony and, there- fore, should not be audiotaped, videotaped or photographed a t all.

4. Baptisms and funerals are not to be photographed or recorded at any time. However, photos before and after the baptismal ceremony or funeral are permissible.

I might add that any photography or taping that does not have the complete approval of the families of the bride and groom should be avoided. That seems rather obvious, but we recently had one situation in which a man not related to the couple getting married wanted to videotape the wedding, con- trary to the families' wis'hes.

I hope these guidelines answer most questions, but if any further questions arise, please write in. As most of you realize, prior to this time the policy had been that neither photography nor taping were permitted during the entire wedding ceremony. Mr. Armstrong explained that the reason for this policy was that the bulky and noisy equipment most often used in the past was too distracting. If such problems can be avoided, he felt that the sanctity of the ceremony can still be preserved.

Copies of the 1985 FESTIVAL PLANNER are now being shipped to church pastors in the United States and Canada, and should arrive in time for distribution

0 1eM Worldwide ChuCh 01 God

PAGE 2 PASTOR GENERAL'S REPORT, APRIL 11, 1985

on t h e Sabbath of Apr i l 20. Please make a b s o l u t e l y sure t h a t you d o n o t d i s t r i b u t e any c o p i e s b e f o r e t h a t date. L a s t y e a r some pastors a c r u a r y d i d d i s t r i b u t e t h e FESTIVAL PLANNER e a r l y . Under -- no c i r c u m s t a n c e s s h o u l d i t be handed o u t b e f o r e A p r i l 20!

D i s t r i b u t i o n s h o u l d be one copy per household. I f you w i l l n o t be v i s i t i n g one of your c o n g r e g a t i o n s on t h e Sabbath o f Apr i l 20, be sure t o g i v e s u f f i - c i e n t copies to t h e F e s t i v a l Adv i so r f o r t h a t c o n g r e g a t i o n . L e t ' s t a k e special care to e n s u r e t h a t a l l t h e b r e t h r e n r e c e i v e t h e FESTIVAL PLANNER on t h e same day. '

The F e s t i v a l a t t e n d a n c e lists w i l l be mai led from Pasadena and Vancouver on Apri l 2 9 . Members w i l l be able t o s i g n u p f o r t h e Feast s i t e of t h e i r choice beg inn ing Sabbath, May 4.

The f o l l o w i n g is a copy o f t h e announcement t h a t is i n c l u d e d w i t h t h e sh ip- ment of FESTIVAL PLANNERS pastors of c h u r c h e s i n t h e U.S. and Canada w i l l r e c e i v e . I t is to be read i n a l l U.S. and Canadian churches A p r i l 20 and 2 7 , i n c o n j u n c t i o n wi th t h e d i s t r i b u t i o n of t h e FESTIVAL PLANNER:

TRANSFER AND HOUSING POLICY

I f you p l a n to t r a n s f e r f o r t h e Feast, you may make your r e s e r v a - t i o n s now a t most t r a n s f e r s i tes. Before making a r e s e r v a t i o n , please n o t e t h e s e two i m p o r t a n t p o i n t s :

F i r s t , you m u s t make o n l y one r e s e r v a t i o n ; e i t h e r a t your as- s i g n e d s i te or a t t h e s i te which is your f i r s t choice for a t r a n s - f e r .

Second, you must s t i l l w a i t u n t i l you r e c e i v e t r a n s f e r a p p r o v a l before you a r r a n g e your hous ing , i f you p l a n to t r a n s f e r t o one o f t h e f o l l o w i n g sites: H a w a i i , J e k y l l I s l a n d , V a i l , P e n t i c t o n and Victoria. T h i s is because w e e x p e c t to r e c e i v e more r e q u e s t s a t t h e s e sites t h a n t h e a u d i t o r i u m or t h e hous ing w i l l accommo- date.

= = make more t h a n one r e s e r v a t i o n .

L i k e w i s e , it is v i t a l t h a t members r e s e r v e the i r hous ing o n l y from t h e lists p r i n t e d i n t h e FESTIVAL PLANNER. Please read t h e a r t ic le "The N e c e s s i t y for F e s t i v a l Housing N e g o t i a t i o n s " on page one, and f o l l o w t h e g u i d e l i n e s g i v e n there. If you have ques- t i o n s , c o n t a c t your F e s t i v a l Advisor . T h e s e policies are for your conven ience and b e n e f i t , and w i l l work o n l y i f everyone f o l l o w s t h e p o i n t s o u t l i n e d above. W e ap- preci ate your cooper a t i o n .

C l a r i f i c a t i o n for J e r u s a l e m Feast A p p l i c a n t s (From t h e F e s t i v a l O f f i c e )

B r e t h r e n i n t e r e s t e d i n a t t e n d i n g t h e Feast of T a b e r n a c l e s i n J e r u s a l e m , Is- rael f o r t h e second or t h i r d t i m e may w i s h t o s i g n up f o r an a l t e r n a t e tour, - for repeaf: v i s i t o r s on ly . Such a tour is new t h i s y e a r , and was called a "second- t imer ' s t o u r " on t h e a p p l i c a t i o n coupon which appeared i n t h e March 1 8 WORLDWIDE NEWS. T h i s w i l l be a r e v i s e d t o u r and w i l l i n c l u d e areas t h a t have no t been s e e n by p r e v i o u s F e s t i v a l tours. Some of these are: Beershe- ba, t h e Rockefeller Museum, t h e I s rae l Museum, and a ve ry e x t e n s i v e walk ing tour of t h e O l d C i t y of J e r u s a l e m .

PASTOR GENERAL'S REPORT, APRIL 11, 1985 PAGE 3

I f anyone i n your c o n g r e g a t i o n is i n t e r e s t e d i n such an a l t e r n a t e tour , he or she shou ld i n d i c a t e t h a t on t h e a p p l i c a t i o n form. I f t h e a p p l i c a t i o n has a l r e a d y been s e n t i n , t h e member shou ld c o n t a c t JMT T r a v e l a t t h e address g i v e n i n t h e March 18 WORLDWIDE NEWS.

NOTICE TO ALL MINISTERS

( N o t - to be Announced)

Due t o i n q u i r i e s r e c e i v e d r e g a r d i n g M r . J i m L i c h t e n s t e i n , w e f e e l it is n e c e s s a r y to a d v i s e t h e m i n i s t r y t h a t M r . L i c h t e n s t e i n has been removed from t h e m i n i s t r y . However, M r . L i c h t e n s t e i n re- mains a member of t h e Church.

A l s o due t o i n q u i r i e s r e c e i v e d r e g a r d i n g M r . and Mrs. Dan W h i t e , w e f e e l it is n e c e s s a r y to a d v i s e t h e m i n i s t r y t h a t Mr. Whi te , former pastor of t h e Helena , B u t t e and Great F a l l s , Montana Churches, has r e s i g n e d from t h e m i n i s t r y and t h e Church. M r . and Mrs. White are c o n s i d e r e d d i s f e l l o w s h i p p e d . T h i s n o t i c e is n o t , and s h o u l d n o t be c o n s i d e r e d a marking o f Mr. and Mrs. White.

Comments From Monthly Church Reports

From t h e U n i t e d S t a t e s

FORT WORTH (PM), TX--BOB SMITH: The WainWRIGHT and t h e Ray WRIGHT tapes are h e l p i n g u s s t a y on t h e "Wright- t rack"! B o t h were ex- t r emely i n s t r u c t i ve and encour ag ing . JOPLIN, MO--VINCE SZYMKOWIAK: I appreciate t h e sermon tapes, such as D r . Wainwright ' s and Mr. W r i g h t ' s , which are s e n t t o be p layed i n t h e loca l areas. They g i v e b o t h t h e f i e l d m i n i s t r y and local c o n g r e g a t i o n t h e o p p o r t u n i t y to hear what is be ing t a u g h t a t Headquarters.

SAN LUIS OBISPO, CA--CARLTON SMITH: The b r e t h r e n have responded w e l l t o t h e t w o tapes by D r . David Wainwright and M r . Ray Wright . I n fac t , a f t e r M r . W r i g h t ' s sermon on t h e e x t e n t of t h e w o r k , 20 members came forward to v o l u n t e e r f o r t h e PT newsstand program.

JACKSON-GREENWOOD, MS--MARC SEGALL: A f t e r h e a r i n g M r . Ray W r i g h t ' s tape, a f e w r e t i c e n t members stepped forward to volun- teer t o f i n d more new l o c a t i o n s f o r t h e PT newsstand program. One member decided to c o n t a c t t h e manager of t h e J a c k s o n airport . The manager was v e r y cold abou t p u t t i n g t h e PT i n " h i s airport ." Bu t , a f t e r t h e member recited some of t h e f a c t s from M r . W r i g h t ' s tape conce rn ing t h e worldwide c i r c u l a t i o n of t h e PT, t h e manag- er ' s a t t i t u d e changed comple t e ly and h e said w e cou ld choose t h e l o c a t i o n i n t h e a i rport t o place t h e s t a n d .

OLYMPIA, WA--MEL DAHLGREN: W e had a YES s k a t i n g p a r t y where w e asked t h e r i n k owner to p l a y t h e "Young Ambassadors" tapes. A t

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t h e end of t h e s e s s i o n he was so impressed w i t h t h e m u s i c and con- d u c t of ou r people t h a t he o r d e r e d a se t of tapes f o r h imse l f ! H e f e l t ou r music was better t o skate to t h a n " g o s p e l rock" and would be a welcome a d d i t i o n t o h i s c o l l e c t i o n .

FLORENCE, =--LAWSON J . TUCK: One of o u r members r e c e n t l y m e t w i th t h e manager of a Q u i c k Mart s tore i n t h e Tennessee area af- ter t r y i n g to do so f o u r other times. To h i s amazement, h e d i s c o v e r e d t h a t he and t h e manager had been ch i ldhood ne ighbors .

A f t e r l o o k i n g a t t h e PT, t h e manager was s u r p r i s e d it was free of cha rge . H e recommended w e u s e t h e three-pouch racks. Another i n t e r e s t i n g f a c t came t o l i g h t . H e manages n o t j u s t one Quick Mart, b u t n i n e t e e n i n t h e s u r r o u n d i n g area! H e asked h i s secre- t a r y t o t y p e a l e t t e r of a u t h o r i z a t i o n to p u t t h e PT i n a l l t h e stores under h i s management. T h i s member related h e l e a r n e d through e x p e r i e n c e the v a l u e of p e r s i s t e n c e , p r a y e r and r e l y i n g on God t o open t h e doors for The PLAIN TRUTH.

RAPID CITY, SD--STEVE BUCHANAN: N e a r l y 100% of motel owners con- tacted i n hous ing n e g o t i a t i o n s mentioned how much they l i k e ou r members. The members s h o u l d be made aware of how i m p o r t a n t t h e i r example is d u r i n g t h e Feast. T h e i r conduc t is perhaps the big- g e s t s i n g l e r e a s o n t h e Church is able t o n e g o t i a t e f o r l o w rates. I n t h i s way everyone i n t h e Church is a par t of t h e " f e s t i v a l team."

--Joseph T k a c h , M i n i s t e r i a l S e r v i c e s AMBASSADOR COLLEGE UPDATE (Pasadena Campus)

Both Ambassador C o l l e g e campuses are now i n t h e mids t of t h e s p r i n g break . The u s u a l b e e h i v e of a c t i v i t y on t h e Pasadena campus is schedu led t o resume n e x t Wednesday, Apr i l 17th--when t h e C o l l e g e w i l l a g a i n be back i n s e s s i o n .

We have now completed t h e process of rev iewing t h e a p p l i c a t i o n s of t h e up- coming two-year (A.A. and A.S.) g r a d u a t e s o f B i g Sandy and Pasadena who w i s h to c o n t i n u e i n t h e fou r -yea r Bachelor of A r t s program. B e f o r e making t h e f i n a l s e l e c t i o n s , c o l l e g e o f f i c i a l s of t h e two campuses g o t t o g e t h e r i n order t o m a k e c e r t a i n t h a t w e were making s e l e c t i o n s based on t h e same s t a n d a r d s . W e f i n a l l y accepted a t o t a l of 166 s t u d e n t s from b o t h campuses i n t o t h e Bachelor o f A r t s program a t Pasadena.

Those AC s t u d e n t s who have been chosen t o go on i n t o t h e four -year program were informed j u s t before t h e s p r i n g break. W e l e t it be known, however, t h a t w e hope t o be able to accept others from among t h e two-year g r a d u a t e s , perhaps a yea r or t w o l a t e r .

I hope a l l o f you m i n i s t e r s and your families had a blessed and happy Feast of Unleavened Bread. My w i f e and I were p r i v i l e g e d t o spend t h e P a s s o v e r and t h e f i r s t day o f Unleavened Bread w i t h God's people i n t h e S h r e v e p o r t , L o u i s i a n a area. W e ve ry much en joyed t h e f e l l o w s h i p w i t h t h e m i n i s t e r s and b r e t h r e n there. A s u s u a l , it was good to see God's people l o o k i n g toward Headquarters, and it is a lways good t o see t h o s e who lead i n p r a y e r i n c l u d e M r . Armstrong i n the i r p r a y e r s - - t h a t God w i l l c o n t i n u e t o g u i d e , s t r e n g t h - en, protect and bless him as h e f a i t h f u l l y leads God's Church forward to- ward t h e Kingdom of God.

PASTOR GENERAL'S REPORT, APRIL 11, 1985 PAGE 5

God c o n t i n u e s t o bless H i s C o l l e g e i n so many ways. A number of t h e coming May g r a d u a t e s have a l r e a d y been informed t h a t t h e y w i l l be h i r e d by t h e Church a f t e r g r a d u a t i o n . Over 70 s t u d e n t s were h i r e d i n 1983, and t h e n an- o t h e r 70-plus i n 1984. W e d o n ' t y e t know how many AC g r a d u a t e s w i l l be h i r e d a f t e r t h i s coming g r a d u a t i o n , b u t w e hope God w i l l see f i t t o u s e many of t h e s e v e r y f i n e , dedica ted young Ambassadors d i r e c t l y i n t h e w o r k of H i s Church.

I appreciate r e c e i v i n g many reports from you m i n i s t e r s - - a s w e l l as from de- par tment heads , work s u p e r v i s o r s and o the r s -conce rn ing t h e ve ry f i n e ex- ample AC g r a d u a t e s are s e t t i n g . Please c o n t i n u e t o remember God's C o l l e g e i n your p r a y e r s - - t h a t w e would a lways go w e l l beyond t h e "ca l l of du ty" i n h e l p i n g to t r a i n t h e s e f i n e young people t o become e x c e l l e n t Ambassadors r e p r e s e n t i n g God's way of l i f e i n a s i c k and dy ing world!

--Raymond F. McNair, Deputy C h a n c e l l o r

UPDATE FROM MAIL PROCESSING

Easter Telecast Produces Another Record Response!

"The P l a i n T r u t h A b o u t E a s t e r , " which aired t h e weekend of Apr i l 6-7, b rought i n an all-time record 17,585 cal ls . N e w Y o r k s t a t i o n WOR aired t h e program 20 minu tes l a t e due to a hockey game. W e b e l i e v e t h i s reduced t h e r e sponse by s e v e r a l hundred calls .

The combined r e s p o n s e f o r t h e telecasts on Easter and t h e r e s u r r e c t i o n , i n c l u d i n g c a l l s d u r i n g t h e w e e k , has reached 37,226.

Callers were q u i t e surprised to l e a r n t h e t r u t h about C h r i s t ' s r e su r - r e c t i o n . They appreciated M r . Arms t rong ' s clear and l o g i c a l e x p l a n a t i o n . Many i n d i c a t e d t h e y would be reexamining the i r b e l i e f s and making some changes. A sampl ing of t h e i r comments follows:

M r . Armstrong is so c r y s t a l clear and thorough i n h i s p r e s e n t a - t i o n . H e researches w e l l and e x p l a i n s it so anyone can under- s t a n d . I was shocked and surprised t h a t C h r i s t d i d n ' t r ise on Sunday! But he showed e x a c t l y what t h e B i b l e s a y s on t h e matter. Other p r e a c h e r s h a r d l y q u o t e t h e B i b l e . M r . Armstrong l e f t m e w i thou t a doubt on t h e i n f o r m a t i o n he gave. I f I had to do a l l t h a t r e s e a r c h t o f i n d t h e t r u t h , it would take m e months. I appreciate h i s do ing it and p r e s e n t i n g so much w i t h i n a h a l f hour.

J.H. ( E l Cajon , CA)

I was shocked! A l l my l i f e I ' v e been go ing to church on Sunday. M r . Armstrong is a wise man and I have t o l i s t e n to him. I h a v e n ' t been a f o l l o w e r of h i s b u t I w i l l be now.

W.O. (Pasadena, CA)

Your program was ve ry thought-provoking. I was raised a s t r i c t C a t h o l i c , and t h i s is t h e opposite of what I ' v e been t a u g h t . I want to l o o k i n t o t h i s s u b j e c t of Easter and s t u d y it. I may have t o make some d e c i s i o n s about what I b e l i e v e .

M.W. (Fort Campbell, K Y )

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I ' v e had B i b l e h i s t o r y i n c o l l e g e and I ' v e though t about t h i s be- f o r e , b u t I ' v e never h e a r d anyone e x p l a i n it. I could never f i g u r e o u t how t h r e e days cou ld f i t between F r i d a y and Sunday.

M.M. (Gree ley , CO)

I was r e a l l y l o o k i n g for Jimmy Swagger t b u t when I g o t M r . Arm- s t r o n g , I c o u l d n ' t t u r n him o f f ! I neve r knew w e c o u l d worship J e s u s i n vain--but i t m a k e s s e n s e . Everybody c a n ' t be r i g h t when t h e y ' r e do ing it d i f f e r e n t ways! I ' d l i k e t o l e a r n more.

N . J . ( N e w Y o r k , NY)

I ' m t h i r t e e n y e a r s o ld and I though t your program was ve ry n i c e . Mr. Armstrong has a l o t of good i n f o r m a t i o n t o back up what he s a y s . T h i s is my f i r s t t i m e watch ing and I g o t o u t my B i b l e and s t u d i e d it w i t h t h e program. I ' m l o o k i n g forward to r e a d i n g t h a t booklet about Easter.

K.W. ( V i o l a , KS)

Very i n t e r e s t i n g - - I ' ve a lways wondered a b o u t how t h e Easter bunny and a l l t h a t g o t mixe.d i n w i t h C h r i s t . The t w o never seemed to go t o g e t h e r .

S.H. (Brigham C i t y , UT)

Summary of WATS C a l l s i n 1985

W e t hough t you would be i n t e r e s t e d i n a recap of WATS r e s p o n s e s t o "The WORLD TOMORROW" telecasts s i n c e J a n u a r y 1. They are l i s t e d as follows:

A i r i n g Date Ti t le /Topic

Weekend Response

1/06/85 T h e Un i t ed S t a t e s & B r i t a i n i n Prophecy 15,836

15,852 1/13/85 Ascen t to G r e a t n e s s 1/20/85 Children--Key t o t h e F u t u r e ? (China) 8,303 1/27/85 What Is t h e C a u s e of Man's Problems? (China) 9,665 2/03/85 World Peace--Mankind' s U l t i m a t e D i l e m m a (Nepal) 15 , 992 2/10/85 What A r e t h e Seven Laws of Success? 17 , 229 2/17/85 13 , 813 2/24/85 What Is t h e Key t o World Peace? (Sr i Lanka) 10,683

T h i s Is t h e Worldwide Church of God

3/03/85 The E l u s i v e n e s s of Peace (Sri Lanka) 3/10/85 Is T h i s t h e End of t h e World?

9,373 12,257

3/17/85 F e s t i v a l E n t e r t a i n m e n t 9,179 3/24/85 Ending Your F i n a n c i a l Wor r ies 1 0 , 558 3/31/85 Was t h e R e s u r r e c t i o n on Sunday? 4/07/85 The P l a i n T r u t h About Easter

17,008 17 , 585

Year-to-date Weekend Average 13,100

For comparison, t h e 1984 weekend a v e r a g e was 9,124. --Richard R i c e , Mail P rocessdng C e n t e r

PASTW GENERAL'S REPORT, A I R I L 11, 1985 ?AGE 7

0 N THE WQbRLD SCENE

TRADE WAR!--THE END OF A 40-YEAR HONEYMOON On A p r i l 9 , t h e J a p a n e s e govern- ment. under U.S. C o n q r e s s i o n a l p r e s s u r e t o reduce a $37 b i l l i o n trade d e f i - c i t k i t h t h e Un i t ed S ta tes , proposed a program t o open t h e n a t i o n ' s m a r k e t s to f o r e i g n trade. And i n an unpreceden ted na t ionwide t e l e v i s e d " f i r e s ide cha t " Prime M i n i s t e r Y a s u h i r o Nakasone pleaded wi th J a p a n ' s shoppers t o buy f o r e i g n goods. "I a s k a l l of you to be on t h e l o o k o u t for f o r e i g n pro- d u c t s when you v i s i t t h e supe rmarke t or depa r tmen t store," M r . Nakasone s a i d , backing up h i s appeal wi th c h a r t s and g r a p h s i l l u s t r a t i n g t h e growing U.S.-Japan trade and payments gap. " T h i s 2 _a -.- l i f e and - d e a t h a f f a i r ( t h a t p-- could lead to) ,a t e r r ib le d e p r e s s i o n , " Nakasone said i n r e f e r e n c e t o pro- t e c t i o n i s t measures pending i n Washington. " W e won ' t be able t o s e l l our cars, our v i d e o s or our machines i n t h e U n i t e d States i f J a p a n d o e s n ' t re- duce its mass ive American trade s u r p l u s , " he con t inued . H e b l u n t l y told h i s countrymen--using c o l l o q u i a l J a p a n e s e rather t h a n t h e u s u a l fo rma l l a n - guage customary t o h i s o f f i c e - - t h a t t h e y must h e l g a v o i d r e p e a t i n g " t h e - t r agedy - of World War z." A t t he same t i m e , a 10-man a d v i s o r y committee i n J a p a n i s s u e d a long- awai ted report recommending t h a t J a p a n open up i t s markets i n s t a g e s ove r t h e n e x t t h r e e y e a r s . M r . Nakasone p ledged t h a t t h e government w i l l prepare t h e a c t i o n p l a n "as soon as possible and s e e k i t s implementa t ion w i t h o u t de lay ." White House Chief of S t a f f Donald T. Regan s a i d P r e s i d e n t Reagan "was p l e a s a n t l y s u r p r i s e d " by Nakasone' s "unprecedented appeal t o t h e J a p a n e s e people to embark on t h e path to f r e e trade." Cri t ics , however, sa id Nakasone 's t h ree -yea r p l a n to boost sales of U.S. products w a s t o t a l l y i n a d e q u a t e and would do l i t t l e to h a l t growing s e n t i m e n t for a U.S. t rade war a g a i n s t J a p a n e s e goods.

The Reagan A d m i n i s t r a t i o n , w h i l e also s t r e s s i n g t h e need f o r results, t o o k a more c o n c i l i a t o r y note . V i c e P r e s i d e n t George Bush said t h e s p e e c h "took a good deal o f courage.. . ." Bush warned t h a t ca l l s i n Congress f o r import t a r i f f s and o t h e r r e t a l i a t i o n to f o r c e i n c r e a s e d U.S. e x p o r t s would end u p h u r t i n g America. "Whatever walls w e dream of b u i l d i n g , i t ' s n o t walls we'd g e t i f w e s tar ted t o l i v e o u t a n igh tmare l i k e t h a t , " Bush said. " I t ' s - 2 -, c l i f f --- and we'd f i n d o u r s e l v e s f a l l i n g s t r a i q h t down i n t o chaos."

The l a t e s t - - and by f a r most s e r i o u s - - t r a n s - P a c i f i c t rade d i s p u t e s ta r ted s h o r t l y a f t e r P r e s i d e n t Reagan released t h e J a p a n e s e from a n o t h e r yea r of " v o l u n t a r y l i m i t s " on t h e e x p o r t of J a p a n e s e a u t o s t o t h e U.S . The J a p a n e s e i n s t e a d kept a l i m i t , b u t raised it about 25%--roughly 2.3 m i l l i o n v e h i c l e s i n s t e a d of 1 .8 m i l l i o n . I n r e sponse , a wave o f p r o t e c t i o n i s t f e r v o r swept through Congress demanding t h a t J a p a n almost i n s t a n t a n e o u s l y ( i n 60-90 days) g r e a t l y r educe import barriers on U.S. goods, s p e c i f i c a l l y i n t h e te lecommunica t ions , p h a r m a c e u t i c a l and wood products i n d u s t r i e s . The Con- g r e s s i o n a l mood was, f r a n k l y , u g l y and e x t r e m e l y dangerous , w i t h no small amount of "Jap-bashing." Emotions t h r e a t e n e d to overwhelm c a u t i o n . Sena- tor Max Baucus of Montana charged: "I would l i k e to l e a v e t h i s body wi th one word, 'Bo-eki-sen.' J u s t so everyone knows what t h a t means, t h a t is J a p a n e s e f o r ' trade war. ' " O t h e r w i s e normal ly sound-minded o f f i c i a l s seemed to be swept up i n t h e a n t i - J a p a n e s e r h e t o r i c . "They are s u c k i n g t h e world dry" complained Repub- l i c a n S e n a t o r from M i s s o u r i , John D a n f o r t h , one of t h e l e a d i n g exponen t s of trade r e t a l i a t i o n a g a i n s t t h e J a p a n e s e . " I n c a t e g o r y a f t e r c a t e g o r y t h e y

PAGE 8 PASTOR GENERAL'S REPORT, APRIL 11, 1985

are s l i c i n g u s n e a t l y and t h i n l y o f f l i k e a piece of s a s h i m i , which t h e y so e l e g a n t l y do," added S e n a t o r J o h n He inz , Repub l i can o f Pennsy lvan ia . Heinz also sa id a t a March 8 S e n a t e h e a r i n g t h a t when t h e " Japanese g e t t h e i r l i t t l e f o r k i n t o us--or chops t i cks - - they r e a l l y do s t i c k i t to us . "

Japanese-Americans i n government and b u s i n e s s have been d e e p l y concerned over t h e r ac i a l o v e r t o n e s of these and other remarks. S e n a t o r Spark Matsunaga, D - H a w a i i , one o f four Americans of J a p a n e s e d e s c e n t s e r v i n g i n Congress , s a y s t h a t there is "so much emot iona l i sm" i n t h e trade debate t h a t t h e rhetoric sometimes reminds him of t h e pre-Pearl Harbor a tmosphere i n t h e Un i t ed States.

A t t h e same t i m e , more knowledgeable trade e x p e r t s stressed t h a t about 75% of t h e c u r r e n t problem l a y w i t h t h e U n i t e d S ta tes , s p e c i f i c a l l y w i t h t h e ove rva lued dol lar , which m a k e s U.S. e x p o r t s more e x p e n s i v e , and imports cheaper. Bu t Congress seems more i n t e n t to p u r s u e t h e r u i n o u s c o u r s e of import q u o t a s and t a r i f f s t h a n t o come to g r i p s w i t h t h e U.S. budget def ic i t , which, by n e c e s s i t a t i n g heavy f e d e r a l bor rowing , keeps i n t e r e s t rates high. T h i s also s u c k s i n i n v e s t m e n t funds from o v e r s e a s , f u r t h e r e l e v a t i n g t h e dol lar ' s v a l u e . S e v e r a l ar t ic les i n THE WALL STREET JOURNAL have g i v e n much needed f a c t u a l background to t h i s h i g h l y charged i s s u e . F i r s t of a l l , there w a s t h e lead a r t ic le i n t h e Apr i l 4 issue:

I f J a p a n is worried by t h e sudden outbreak of p r o t e c t i o n i s t bombast i n Washington, welcome to t h e c l u b . W e too have been more t h a n a l i t t l e shaken by t h e King Kong roars from t h e House and S e n a t e chambers t h i s past week. They t h r e a t e n to touch off j u n g l e emot ions no one could c o n t r o l . And n o t h i n q w o u l d v t -- t h e U.S . economic r e c o v e r y or send U.S. l i v i n g s t a n d a r d s tumbl inq f a s t e r t h a n a trade war w i t h Japan.. . .

A s w e have said h e r e before, J a p a n is n o t blameless f o r t h i s o u t - b u r s t of j ingoism. . . . Its t a r i f f s are lower t h a n t h o s e of t h e U.S., b u t i ts n o n - t a r i f f barriers are t h e rub. . . . The U.S. would be even more f o o l i s h , however, i f it t o o k steps to l i m i t its trade w i t h Japan . A s George Gi lder obse rved so a s t u t e l y [quoted l a te r i n t h i s report] . . . , U . S . - Japanese trade is s y n e r g i s t i c . B o t h sides b e n e f i t enormously .... H i g h - q u a l i t y J a p a n e s e compo- n e n t s are v i t a l t o h igh- tech U.S. p r o d u c t s . J a p a n e s e c o m p e t i t i o n keeps U.S. m a n u f a c t u r e r s on t h e i r toes. Most i m p o r t a n t , i n e x p e n s i v e J a p a n e s e goods help Americans raise t h e i r l i v i n g s t a n d a r d s , r e d u c i n g wage demands on U.S. manufac tu re r s .

Some U.S. companies compla in about J a p a n e s e c o m p e t i t i o n b u t t h e n some companies complain a b o u t any k ind of c o m p e t i t i o n . There - no e v i d e n c e t h a t J a p a n e s e c o m p e t i t i o n - h a s damaged t h e U.S. econ- omy as 3 whole. Employment and cap i t a l inves tmen t have r i s e n s h a r p l y . F a c t o r y sh ipmen t s , presumably most v u l n e r a b l e t o import c o m p e t i t i o n , were up n e a r l y 30 per c e n t i n December from t w o y e a r s p r e v i o u s l y .

--- 7-- -

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But what about a l l those dol lars t h e J a p a n e s e are accumula t ing , asked one of t h e p u n d i t s on a Sunday TV p a n e l . The answer is t h a t Americans shou ld g i v e t h a n k s t h a t t h e J a p a n e s e w i l l accept f l i m s y paper dollars i n exchange for s h i n y T o y o t a s , P a n a s o n i c s and t h e l i k e . They accept them h a p p i l y because t h e dol lar is a good cu r -

PASTOR GENERAL'S REPORT, APRIL 11, 1985 PAGE 9

rency. The J a p a n e s e can u s e them to buy i n A u s t r a l i a or B r a z i l , which i n t u r n u s e them to buy i n t h e U.S. O r maybe t h e J a p a n e s e i n v e s t them i n U.S. bonds or i n b u i l d i n g p l a n t s i n t h e U.S. . . . Dollars w i l l c o n t i n u e t o be w e l l accepted so l o n g as t h e U.S. f o l l o w s sound, f r e e - t r a d e economic policies....

Par t of t h e r e a s o n f o r t h i s w e e k ' s o u t b u r s t , w e suspect, is t h a t a d i s o r g a n i z e d Congress f i n d s p o s i t i v e t a s k s too demanding. So members r e l i e v e their f r u s t r a t i o n s and the i r r e e l e c t i o n f e a E - with primal screams toward - t h e P a c i f i c . T h a t worries us.... Americans, u n f o r t u n a t e l y , w i l l be t h e main v i c t i m s i f Congress g e t s i tself i n t o a s e l f - d e s t r u c t i v e mood.

THE WALL STREET JOURNAL, on J a n u a r y 4 , 1985 r a n an a r t ic le e n t i t l e d "The Po l i t i ca l Dimension of J a p a n ' s Trade Balance ," w r i t t e n by Robert K e a t l y , editor of t h e ASIAN WALL STREET JOURNAL:

Some J a p a n e s e are becoming ex t r eme ly peeved by a l l t h i s . What t h e W e s t wants , t h e y con tend , is f o r e f f i c i e n t J a p a n t o adopt European s l o t h and American i n e f f i c i e n c y . They s a y f o r e i g n e r s shou ld work h a r d e r t o meet J a p a n e s e c o m p e t i t i o n and to p e n e t r a t e t h e a d m i t t e d l y complex J a p a n e s e market, and stop complaining. They i n s i s t J a p a n won't s i n k t o s t a n d a r d s of t h e West by import- i n g its lackadaisical labor methods, whimsical s t r ikes and mid- d l i n g management.

A s a r e c e n t b o o k phrased i t , t h e Ja a n e s e b e l i e v e Europeans i n a r t i c u l a r "have lost t h e h a b i t - of w o r k . Thus, t o u r i s t s f i n d

gu rope o n l y a x c e place t o v i s i t , w i t h ' cu l tura l monuments, good shopping and e x o t i c s ex - -a l l a t r e a s o n a b l e prices and a l l se t i n

-1-

ele a n t - s t a na t ion . " O t h e r s c a l l Europe a b o u t i q u e , America a +-+- arm. beyond a s h i o n s and food , t h e West has l i t t l e to o f f e r t h a t meets J a p a n ' s h igh standards--and t h a t ' s n o t something for which J a p a n d e s e r v e s blame .

I n t e r e s t i n g l y enough, t h e Common Market, by a d m i t t i n g two a d d i t i o n a l "poor cous ins" (Spa in and P o r t u g a l ) may be i n even less of a p o s i t i o n t o meet J a p a n e s e compe t i t i on . The Europeans have employed a l l sorts of elaborate gimmicks t o res t r ic t J a p a n e s e imports--far more t h a n t h e Americans have used. T h i s h a s s e r v e d o n l y to deflect more J a p a n e s e sales to t h e U.S.

Murray Weidenbaum, a former chairman of P r e s i d e n t Reagan 's Counc i l of Econ- omic A d v i s e r s , a lso wrote i n THE WALL STREET JOURNAL, Apr i l 2, 1985, i n an a r t ic le t i t l e d "U.S. Expor t Curbs C o n t r i b u t e to t h e Trade D e f i c i t " :

A more c o n s t r u c t i v e approach to reduc ing t h e trade d e f i c i t can proceed from a l i t t l e - k n o w n fact: The U.S. has erected many bar- r iers t o i ts own exports. These are s e l f - i n f l i c t e d wounds t h a t are e a s i l y treated. For example, t h e Trans-Alaskan P i p e l i n e A u t h o r i z a t i o n A c t p r o h i b i t s t h e export of o i l from N o r t h Slope f i e l d s . Under f r e e - t r a d e c o n d i t i o n s , A l a s k a would be J a p a n ' s least-cost supplier of energy....

Another burden to U.S. trade is t h e F o r e i g n C o r r u p t Practices A c t , which r e q u i r e s s t r i c t record-keeping s t a n d a r d s t o guard a g a i n s t b r i b e r y of f o r e i g n o f f i c i a l s . I t is d i f f i c u l t to d i s c u s s

~-

PAGE 10 PASTOR GENERAL'S =PORT, APRIL 11, 1985

that law without being criticized for ethical callousness. How- ever...the language of the act is so sweeping and ambiguous that American firms turn down foreign business when they merely sus- pect that they could be charged for actions technically classifi- able as bribery. In a survey of 250 American companies, the General Accounting Office found that 30 percent of the respon- dents engaged in foreign trade had lost business as a result of the Foreign Corrupt Practices Act.

One of the most prominent economists today is George Gilder, author of such books as WEALTH AND POVERTY and THE SPIRIT OF ENTERPRISE. In the April 27 WALL STREET JOURNAL, Mr. Gilder wrote an article entitled "Imports Are Not a Problem but a Cure." In it he stressed the incredibly interwoven econo- mies of Japan and America, and how disastrous it would be to disrupt this relationship. Most of all, asks Gilder, why the sudden hew and cry over im- ports when the U . S . economy is humming along with millions of jobs having been created during the current boom?

. Many economists persist in predicting dire damage from deficits in the U . S . budget and balance of payments despite the lack of any significant evidence of serious malfunction. After a two- year period when the nation's businesses created some seven mil- lion jobs. ..these economists nod sadly and speak of two million jobs lost through the trade deficit.

After a record 33.2 percent rise in real capital outlays over a two-year period--making U . S . plant and equipment newer on average than Japan's.. .leading pundits and politicians speak in despair ofU.S. comnetitiveness and urue drastic new nrotectionist laws [which 1.. . tireaten - to poison <he most importint source of U.S. - and world recovery: The risinq exchanqes of 900ds, people and ideas between the U.S. ---- and Asia, particularly Japan.

On the simplest and most immediate level, the surging growth of the U.S. economy stems in part from the availability of high- quality products, such as cars and VCRs, made in Japan and sold here at ever more attractive prices .... Many of the most highly motivational products in America today--the goods that most en- hance the real value of after-tax income--come from Japan.. . . More important still,. . .far from inhibiting the expansion of U.S. high technology, Japanese imports, sold at ever lower prices, helped lower costs and expand markets for computers and related equipment that also dominated demand for U.S. parts. Without key inputs from one another, neither the U . S . economy nor Japan's could grow nearly as fast. Whether the more measurable parts of these exchanges happen to balance out during any one period is of no importance if both economies benefit.

Take, for example, the IBM personal computer, which rose from nothing to approach a $7 billion business over the past three years and was perhaps the exemplary product of the recovery. Its success was made possible by about 5,000 software entrepreneurs, led by Lotus; its most essential parts were sophisticated micro- processors and controllers from Intel, Motorola and Western Digi- tal. But more than 60 percent of the other parts came from abroad, mostly from Japan.

PASTOR GENERAL'S REPORT, APRIL 11, 1985 PAGE 11

In fact, U.S. makers of parts and peripherals were utterly incap- able of fulfilling the needs of the computer revolution that erupted with unexpected fury over the past few years. Without hardware imports from Japan, the software would not have been sold, the memory sockets could not have been filled in time, disk drives and cathode ray tubes would not have been available....

Even the U.S. semiconductor industry, often cited as a victim of Japanese imports, benefited greatly from such imports. ... Japan's efficient output of huge volumes of commodity chips at ever lower costs lowered the prices of all electronic gear and thus enlarged the market for more specialized and higher-margin devices from U.S. companies .... Nothing could so rapidly cripple U.S. techni- cal progress as to exclude trade with Japan.

These imports are in general a positive reflection of the good health of the U . S . economy -- and its superiority to Japan cru- - cia1 technoloqies. The $30 billion deficit in our balance of trade with Japan in high-technology products mostly reflects our faster and more resourceful application of computers and related equipment.. . . The U.S. lead is not limited to applications, however. In a re- cent poll by the Organization for Economic Cooperation and Deve- lopment, 200 leading European chief executive officers found the U.S. to be the world leader in five major fields of technology, even with Japan in two others (electronics and manufacturing) and number two only in robotics and metal alloys.... Europeans, be- hind in every area by their own appraisal, have not benefited in any discernible way from their aggressive industrial policies and exclusion of much Japanese technology.

Failing to comprehend the multifarious and delicate pattern of U.S.-Japanese interdependency, economists and politicians fixate on the two deficits [budget and foreign trade1 and threaten to inflict real damage on an essentially healthy system. ... When the U . S . and Japanese economies are intimately symbiotic, they urge disruptive protection that will hurt both.. . . Although the U.S. must continue to negotiate for easier access to Japanese markets, particularly in semiconductors and telecommu- nications, it must always recognize that America benefits from Japanese capitalism, even when--and perhaps particularly when-- Japan floods U.S. markets with its goods. In particular, & - most recent U.S. recovery was &I considerabTy deqree made &J Japan.

Another leading American economist, Robert J. Samuelson, writing in the April 8, 1985 LOS ANGELES TIMES, worried that U.S.-Japan trade frictions could explode in the future. A major reason, he explained, is the cultural gap between the two powers.

Although today's dispute may subside, the United States and Japan have fundamentally different trading aims and political styles. It's hard to be optimistic that the differences won't one day explodentog3rotectionist - spasm that harms everyone.

PAGE 12 PASTOR GENERAL'S REPORT, APRIL 11, 1985

The trade dispute is heavily laden in mythology. Is Japan most responsible for America's widening trade deficit? No. Since 1982 the overall trade deficit has roughly tripled to $107 bil- lion in 1984. In the same period the trade deficit with Japan only doubled. Three-quarters of the increase came elsewhere. The main reasons have been the rapid economic growth in the United States, which increases imports, and the high value of the dollar, which make exports more expensive and imports cheaper .... But the Japanese use American myths to justify their own. They routinely argue that their markets are open and that the diffi- culties of Americans and others reflect either uncompetitive pro- ducts or lazy salesmanship. In fact, Japan heavily protects many uncompetitive industries, like plywood and agriculture .... Much of Japan's protectionism also reflects tradition.. . . Com- mercial relationships are based more on trust and familiarity than on contracts: "If a new company in the United States wants to supply components to General Motors, if it can meet price and quality, it can make a deal," [William Tanaka, a Washington at- torney who represents many Japanese firms] says. Not so in Japan; the company "not only has to beat the terms and conditions of the current supplier" but also has "to develop a relationship of trust.".. . At bottom, Americans and Japanese view trade differently. Even when practicing protectionism, most Americans praise open trade.... There is little of this from Japan. Even rhetorically, the Japanese show scant interest in the abstract virtues of im- porting for its own sake. Their interests lie in assuring essen- tial imports--foods, fuel and minerals--and maintaining their own export markets. So the Japanese preoccupation is in soothing "trade frictions." They will make concessions--grudgingly and often of little value--to do this, but not to realize the gains of larger two-way trade. . . . We are fast approaching the limits of our messy way of dealing with trade conflicts. The younger generation of Japanese lack their elders' sense of qratitude to Americans fosterinq the country's postwar recovery. In the United States, anti-Japanese resentment is rlsing .... It is an ill wind that blows no good.

Mr. Nakasone's chief adviser on the trade crisis is Saburo Okita, a former foreign minister. Mr. Okita said rather glumly of the current situation: "I am seriously concerned that there is too much emotion and impatience in Congress, without due understanding of the situation. There is the concern (here) that if we are pressed too much by a foreign government, it may arouse nationalistic sentiment. This would really damage Japan. At the same time ...if you - - have a nationalistic, unfriendly Japan this part of - Asia, the whole - U.S. policy would be upset." Nothing could bring the U.S. economic recovery to a screeching halt faster than a retaliatory trade war. It is estimated that one in every five jobs in U.S. manufacturing is dependent on exports. Fully one-third of U.S. farm produce is shipped overseas. The notorious Smoot-Hawley Act of 1930, imposing stiff tariffs on imports, played a major role in turning the chaos

PASTOR GENERAL'S REPORT, APRIL 11, 1985 PAGE 13

resulting from the stock-market collapse into a full-fledged international depression. It seems that many of today's younger politicians in Washing- ton have not learned the brutal lesson of Smoot-Hawley. (I heard a funny definition of Washington, D.C. yesterday--"an island surrounded by reali-

And, as Mr. Okita, quoted above, alluded to, the prospects of an aggrieved Japan, aroused to dangerous nationalistic sentiment, is something nobody should desire. In this light, it is interesting to note an observation made in an editorial which appeared in the Spanish-language newsweekly, VISION, in its October 22, 1984 issue. Most of the editorial, entitled, "Facing the Giant,'' dealt with the ever-sensitive U.S.-Latin American relationship. But note this reference to U.S.-Japan ties.

ty.")

Perhaps the most outstanding example in the contrast between a formal alliance and actual rivalry is Japan. When MacArthur oc- cupied it at the end of the Second World War, he prepared himself for a guerrilla war. What did he find instead? Respect and smiles. The pre-war militaristic Japan gave way commercialis- tic Japan. Has the competition between Tokyo and Washington

sd because of this? Or shouldn't it rather be said that Ja-

A rather shocking assessment. The fruition of any such vengeful feelings would await future leaders, not men like Prime Minister Nakasone, who are doing all in their limited power to preserve the shaky U.S.-Japan relation- ship. But what if a full-blown trade war should erupt, bringing modern Japan to its knees? It is no coincidence that the real test in U.S.-Japan ties should come at this time, forty, years after the end of the war. In 1945 Japan turned abruptly from hostility to America, toward a position of confidence-confidence in U.S. military protection, and reliance on trade links to Washington. This forty year period, too, is nearing its end.

--Gene H. Hogberg, News Bureau