sfh074
I'm sure you and I are among a pretty small club of those who have read the book. On and off, I'm working on a book about my time in the auto industry, which I believe is also world's different than how it's portrayed in popular media... However, I believe the book is so critical to understanding (especially post WWII) US trade policy that I dedicate a chapter to it, fully crediting the author, who I'm sorry to say is now deceased.
I pasted a few excerpts below. I'm interested in your thoughts since you have read the book. For others, it shows the depths of detail contained in the book.
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... I’ve also devoted some time to the subject because many rightfully wonder why American manufacturers don’t speak up more stridently; if in fact they are being so disadvantaged by imports and exclusion from foreign markets. It’s possible that they may have looked at the outcome for Zenith Radio Corporation, which did choose legal remedies, pleading (and suing) for the enforcement of internationally recognized anti-dumping laws, anti-monopoly laws and prosecution for U.S. Customs fraud; only to be repeatedly undermined by involvement from our own State Department and Justice Department. The waters of international law enforcement get very murky when politics are involved. Zenith demonstrably resisted the temptation to off-shore its manufacturing, research and development for decades after its competitors had moved their manufacturing to Asia, or closed their doors altogether. By the early 1990s, this industry-leader was reduced to a shell of its former self. Zenith’s ace-in-the-hole, a compatible system of HDTV was their only proprietary asset of any value....
...Japanese manufacturers had captured the entire U.S. portable radio market with a similar (although less lucrative) dumping scheme. Thus by 1968, facing declining sales and finding no further means of cost reduction, Zenith was forced to end U.S. production of portable transistor radios. They were the last holdout. Zenith executives had seen the handwriting on the wall for the more profitable television market as early as 1960, and reasoned that American competition would lower prices in the Japanese market, thus ending the cartel’s ability to endure losses from predatory dumping in the United States. Beginning in 1961, Zenith decided to enter the Japanese market.
Zenith management contacted C. Itoh and Company, a major Japanese trading company for help in distributing Zenith products in Japan, which had proven popular at trade fairs and demonstrations throughout Japan. However, this effort would soon meet with failure as Zenith was met with a virtual firewall of Japanese government protectionism. In a translated letter from C. Itoh, it was explained, “[Ministry of International Trade and Industry] (MITI) would not allocate the currency, because Zenith products are exceedingly popular in the market here.”_
Undaunted, Zenith management made a second attempt to begin importing, this time though another trading company by the name of Nichimen. Again, the effort proved futile. A final letter was received from Nichimen to Zenith management, dated May 16, 19632
After several publicity and news releases on the intention of our company to market Zenith’s product line, there was an abrupt halt to the entire program. Although the reasons for this halt have never been fully explained to me, I feel they were due to the following reasons:
The Japanese Electronic Industry Association’s pressure to the Government;
The Japanese Electronic Industry’s pressure to the leading chain and department stores;
An attempt to pressure our company and persuade us by various means not to indulge too aggressively in the distribution of these products.
A third, all-out effort was made with C. Itoh in 1963. This was again met with resistance and delay. Eventually, the idea of exporting into Japan was given up.
As had been the case with portable radios, the dumping margins were so great that attempts to cut costs and match prices were simply impossible. Without enforcement of various Federal anti-dumping, anti-trust and duty laws, it was felt that U.S. consumer electronics manufacturing would be destroyed. The remaining U.S. television manufacturers filed a petition with the Treasury department in 1968 pleading for enforcement of the Antidumping Act of 1921. Zenith’s own president, Joseph Wright, carrying the weight of what was now the United States largest television manufacturer, personally asked Congress and the executive branch to expose this unlawful conduct, and put a stop to it as required by Federal law. Standing in opposition to this petition was RCA. Any successful attack on the Japanese cartel would threaten RCA’s multi-million dollar royalty income, and diminish the need for their technical assistance. In filings with the Treasury department, Zenith demonstrated that 19-inch color TV’s were being sold in Japan for over $500, while the same sets were sold through American retailers for less than $300. On higher-end models, the dumping margins were even more lucrative.