Community Contact • Dana Mead

PREPARED FOR DANA MEAD, CHAIRMAN, TENNECO CORP.
DELIVERED TO GREENWICH ROTARY SPEECH

GOOD DAY.

AS THE NEW KID IN THE NEIGHBORHOOD, IT’S A PLEASURE TO MEET WITH YOU IN WHAT I HOPE IS ONE OF THE FIRST OF MANY GET-TOGETHERS AS WE BUILD NEW FRIENDSHIPS BETWEEN THE TENNECO FAMILY AND THE GREENWICH COMMUNITY.

NOW SOME OF YOU MAY HAVE HEARD THAT I’M NOT EXACTLY A STRANGER TO GREENWICH.

ONE OF MY ANCESTORS WAS A FOUNDING FATHER OF THIS CITY, AND BY THE LOOKS OF THINGS, I’D SAY HE SPENT MOST OF HIS TIME TRYING TO STICK HIS NAME ON ANYTHING THAT WOULD STAND STILL FOR IT -- STREET, PARK, SCHOOL, LAKE, AND WHO KNOWS WHAT ELSE.

I GUESS I SHOULD FEEL LIKE A BLUE BLOOD BECAUSE OF THAT, BUT I’M REMINDED OF AN APOCRYPHAL STORY OF WHEN JOHN F. KENNEDY JR. APPLIED FOR HIS FIRST JOB ON A MAGAZINE.

THE EDITOR RECEIVED A LETTER OF RECOMMENDATION FROM THE FAMILY LAWYER EXPLAINING THAT THIS YOUNG MAN WAS THE GRANDSON OF A FINANCIAL GENIUS, THE SON OF A US PRESIDENT, AND THE NEPHEW OF A US SENATOR.

TO EVERYONE’S SURPRISE THE EDITOR REJECTED JOHN JOHN. HE EXPLAINED: “WE REALLY NEEDED SOMEONE FOR WORKING, NOT FOR BREEDING STOCK.”

SO I GUESS UNLESS MY GREENWICH-FOUNDER-ROOTS GETS ME SOME OFFERS FOR BREEDING STOCK, I’M GOING TO HAVE TO GO BACK TO WORK THIS AFTERNOON LIKE EVERYONE ELSE.

THAT’S O.K. WITH ME, FOR I UNDERSTAND WORK A LOT MORE THAN HEREDITARY PRIVILEGE.

AND I ADMIT THAT I CARE LESS ABOUT WHO MY GREAT, GREAT GRANDFATHER WAS, THAN WHO HIS GREAT, GREAT GRANDSON MAY YET BECOME.

AND I SUSPECT YOU FEEL THE SAME WAY. SO
TODAY I’D LIKE TO TALK ABOUT WHAT WE BOTH KNOW BEST -- BUSINESS. YOURS AND MINE.

TENNECO’S BUSINESS HAS NEVER BEEN BETTER. OVER THE PAST SIX YEARS, TENNECO HAS GONE FROM AN UNWIELDY CONGLOMERATE TO A MANUFACTURING COMPANY FOCUSED ON TWO BUSINESSES -- AUTO PARTS AND PACKAGING.

WE’RE THE LARGEST NON-CAPTIVE PRODUCER OF RIDE CONTROL, WITH MONROE SHOCKS, AND STRUTS AND WALKER MUFFLERS.

AND YOU KNOW US IN PACKAGING IN NAMES LIKE HEFTY, ONE ZIP, E-Z FOIL, AND WE’RE NUMBER ONE IN SERVING BUSINESS PACKAGING NEEDS.

TENNECO IS TODAY A 7 BILLION- DOLLAR COMPANY, WITH A GROWTH RATE OF 15 PERCENT, AND PROFITS ACROSS THE BOARD THAT ARE UPWARDS OF 20 PERCENT.

SO BUSINESS HAS NEVER BEEN BETTER FOR TENNECO, AND I SUSPECT YOUR BUSINESS IS ALSO THRIVING.

WE’RE ALL ENJOYING THE LONGEST ERA OF SUSTAINED PROSPERITY WITHOUT INFLATION IN THIS NATION’S HISTORY.

AND AS YOU’D SUSPECT, EVERYONE IN WASHINGTON IS CLAIMING RESPONSIBILITY FOR THE GOOD ECONOMIC NEWS.

WHEN I WAS ON THE WHITE HOUSE STAFF, I RECALL RICHARD NIXON USED TO SAY, “EVERY IDEA IS AN ORPHAN IF IT FAILS, AND HAS LOTS OF PARENTS IF IT DOES WELL.”

SO RIGHT NOW, EVERYONE IS CLAIMING PATERNITY...THE FEDERAL RESERVE, CONGRESS...

...SOME ARE EVEN GIVING CREDIT TO THE FIRST LADY, EVEN THOUGH RUNNING THE COUNTRY ISN’T SOMETHING WE NORMALLY ASSOCIATE WITH HILLARY CLINTON, OR FOR THAT MATTER, WITH BILL CLINTON.

TODAY, I’D LIKE TO PLACE OUR SUSTAINED GROWTH INTO PERSPECTIVE -- AND GIVE CREDIT WHERE CREDIT IS DUE.

TO BUSINESS, OF COURSE.

OR PERHAPS, MORE CORRECTLY, TO AMERICAN BUSINESSES’ ABILITY TO RE-INVENT OURSELVES IN THE MIDST OF A TECHNOLOGICAL REVOLUTION THAT HAS THRUST US INTO A RADICALLY NEW ERA OF GLOBAL COMPETITION.

NEW TECHNOLOGIES OFTEN LEAD TO REVOLUTIONARY CHANGE.

THE AMERICAN INDEPENDENCE WE WILL CELEBRATE IN TWO DAYS, IN FACT, WAS PRE-ORDAINED SOME 300 YEARS BEFORE
THE SHOT HEARD ROUND THE WORLD.

THE INVENTION OF THE GUTENBERG PRESS MADE WORKING-CLASS LITERACY POSSIBLE, FOSTERED ENGLAND’S NATION OF SHOP KEEPERS, AND LED TO AN EDUCATED COLONIAL POPULATION KNOWLEDGEABLE ENOUGH TO ACT IN THEIR OWN SELF INTEREST.

OR CONSIDER THE INVENTION OF INTERCHANGEABLE PARTS. THAT WAS THE BRAIN CHILD OF ELI WHITNEY, A CONNECTICUT NUTMEGGER BY MARRIAGE.

THAT INVENTION TRIGGERED AMERICAN INDUSTRIAL DEVELOPMENT AND A HUNDRED YEAR SHIFT FROM FARM TO FACTORY.

OR ELI WHITNEY’S COTTON GIN, WHICH FOSTERED A VIABLE CASH CROP FOR THE SOUTH THAT MADE SLAVERY ECONOMICALLY IMPORTANT, THUS SETTING THE STAGE FOR THE CIVIL WAR.

TODAY, WE HAVE THE MOST DRAMATIC EXAMPLE OF GLOBAL REVOLUTION COMING FROM A SINGLE INVENTION.

A GUY NAMED JACK KILBY TOOK A HANDFUL OF COMMON SAND, SILICON, AND DREW PICTURES ON IT, AND FROM THAT REMARKABLY HUMBLE BEGINNING THE CYBER REVOLUTION WAS LAUNCHED.

AND BELIEVE ME, IT’S NOT HYPERBOLE TO CALL IT A REVOLUTION.

IT’S REVOLUTION WHEN THE FUNDAMENTAL RULES OF COMPETITIVE LIFE CHANGE.

FOR THOUSANDS OF YEARS, WEALTH HAS BEEN BASED ON MATERIAL ABUNDANCE.

COUNTRIES LIKE AMERICA WITH THE GREATEST NATURAL RESOURCES HAD THE ADVANTAGE.

TODAY, ANY COUNTRY -- NO MATTER HOW DEVOID OF RESOURCES -- CAN BECOME A WORLD COMPETITOR THANKS TO CYBER TECHNOLOGIES.

LOOK AT JAPAN, TAIWAN, SWITZERLAND, AND MOST RECENTLY, SOUTH KOREA -- ALL CROWDED LITTLE COUNTRIES WITHOUT ANY SIGNIFICANT NATURAL RESOURCES. YET THEY HAVE BECOME MAJOR COMPETITORS THROUGH THE APPLICATION OF ADVANCED TECHNOLOGIES.

AND IF ALL THIS CAN HAPPEN WITH TECHNOLOGY IN SMALL COUNTRIES, JUST WAIT UNTIL CHINA AND INDIA AND INDONESIA, WITH MORE THAN HALF OF THE POPULATION OF THIS PLANET, COMPLETE THEIR CYBER TECHNOLOGY REVOLUTIONS.

THAT’S WHY COMPANIES LIKE TENNECO ARE NOW GLOBAL. TENNECO OPERATES IN 23 COUNTRIES ON FIVE CONTINENTS, AND ABOUT HALF OF OUR INCOME IS NOW NON-US BUSINESS.

THE NEW REALITY IS THAT YOU HAVE TO BE COMPETITIVE EVERYWHERE, OR YOU WON’T STAY COMPETITIVE ANYWHERE ... NOT EVEN HERE AT HOME.

GLOBALIZATION ALONE, OF COURSE, DOESN’T ACCOUNT FOR AMERICA’S CURRENT PERIOD OF PROLONGED PROSPERITY.

JUST THE OPPOSITE, GLOBALIZATION BY ITSELF CAN MEAN SUFFERING THROUGH AN INVASION OF HIGH-QUALITY, LOW COST FOREIGN PRODUCTS HITTING OUR SHORES AS WE EXPERIENCED IN THE LATE ‘70S AND DISASTROUS EARLY ‘80S.

SO HOW DID AMERICAN BUSINESS ACHIEVE THIS UNPRECEDENTED ERA OF PROSPERITY?

WELL THERE’S AN OLD SAYING THAT WHENEVER GOD CLOSES A DOOR, HE OPENS A WINDOW.

THE SAME EVER-ADVANCING TECHNOLOGY THAT CLOSED THE DOOR ON SPLENDID ISOLATION, OPENED A WINDOW OF OPPORTUNITY, AS WELL.

FIRST, SMART TECHNOLOGY ITSELF MADE UNPRECEDENTED PRODUCTIVITY POSSIBLE. THE SMART MACHINES ALLOW US TO PRODUCE FAR MORE AND BETTER PRODUCTS WITH FEWER AND FEWER MAN HOURS.

HOW FAST THIS IS MOVING IS SUGGESTED BY ONE CALIFORNIA CURMUDGEON WHO PREDICTS THAT THE FACTORY OF THE FUTURE WILL HAVE ONLY ONE MAN AND ONE DOG.

THE MAN WILL BE THERE TO FEED THE DOG, AND THE DOG WILL BE THERE TO MAKE SURE THE MAN DOESN’T TOUCH THE EQUIPMENT.

OF COURSE, THAT HASN’T HAPPENED, AND IT WON’T. JUST THE OPPOSITE, INSTEAD OF ELIMINATING ALL MANUFACTURING PEOPLE,
THE CYBER TECHNOLOGY HAS ELEVATED THEM.

WHICH IS THE SECOND REVOLUTIONARY CHANGE EFFECTING PRODUCTIVITY.

SMART MACHINES HAVE UNCHAINED INDIVIDUALS FROM THE MACHINES, ALLOWING THEM TIME TO DO WHAT ONLY SMART PEOPLE CAN -- TO THINK, TO CREATE, TO INNOVATE.

THESE PEOPLE WHO ARE CLOSEST TO THE TECHNOLOGY ARE NOW ENPOWERED TO MAKE DECISIONS -- COME UP WITH BETTER PROCESSES AND WAYS OF GAINING CONTINUOUS IMPROVEMENTS.

AND THE RESULTS ARE NOTHING SHORT OF SPECTACULAR.

IN ONE OF TENNECO’S AUTOMOTIVE COMPONENT PLANTS, FOR EXAMPLE, WE’VE INCREASED PRODUCTIVITY IN THE PAST YEAR BY NINE PERCENT, WITHOUT ANY ADDITIONAL INVESTMENTS.

AND A MORE AWARE EMPLOYEE KNOWS THE COMPETITIVE REALITIES OF LOW-WAGE GLOBAL MANUFACTURERS... AND THIS AWARENESS HAS SERVED TO NEGATE TRADITIONAL UPWARD WAGE PRESSURES.

THE RESULT IS AN ENTIRELY NEW GLOBAL ECONOMIC REALITY -- AND THE POSSIBILITY OF PRODUCTIVITY GROWTH WITHOUT THE COUNTER-PRODUCTIVE THREAT OF INFLATION.

SO IF ANYONE DESERVES CREDIT FOR THE PROSPERITY WE ARE NOW ENJOYING, IT SHOULD BE BUSINESS FOR RISING TO THE REVOLUTIONARY CHALLENGES... FOR RE-INVESTING IN RAPIDLY CHANGING TECHNOLOGIES... FOR VESTING FAITH IN OUR PEOPLES’ ABILITY TO COMPETE.

BUT BEFORE I STRAIN MYSELF PATTING BUSINESS ON THE BACK, I’D BETTER ADD THAT THIS HAS ONLY BEEN THE FIRST SALVO. THE REVOLUTION HAS JUST BEGUN.

COMPETITION IS GROWING EXPONENTIALLY. ENABLING TECHNOLOGIES ARE DOUBLING EVERY COUPLE OF YEARS... DEMANDING REINVESTMENT AT A RATE THAT FAR EXCEEDS OUR GREATEST SPENDING DURING THE COLD WAR ARMS RACE.

ONE AUTO COMPANY TENNECO SERVES, FOR EXAMPLE, RECENTLY CONCLUDED THAT THEY NEEDED TO STAY AHEAD AND INVEST IN 5,138 DIFFERENT AREAS OF FAST-CHANGING TECHNOLOGY.

ANY ONE OF THOSE TECHNOLOGICAL FRONTS IF IGNORED, COULD PUT THAT COMPANY AT A COMPETITIVE DISADVANTAGE, AND POSSIBLY OUT OF BUSINESS.

SO HOW DOES ANY COMPANY COMPETE IN SUCH AN INTENSE GLOBAL ENVIRONMENT? THE ANSWER IS SIMPLE -- YOU CAN’T. AT LEAST, NOT ALONE.

BUT WE KNEW THAT EVEN ON JULY 2ND, 1776.

AT THE VERY MOMENT OUR FOREFATHERS WERE SIGNING THE DECLARATION OF INDEPENDENCE, BRITISH GENERAL HOWE WAS LANDING ON STATEN ISLAND WITH AN ARMY OF 32,000 REASONS WHY IT COULDN’T BE DONE. AND BEN FRANKLIN SUMMED UP THE SITUATION IN SAYING:

“WE MUST ALL HANG TOGETHER, OR MOST ASSUREDLY, WE WILL ALL HANG SEPARATELY.”

THAT WAS GOOD ADVICE THEN, AND IT’S ABSOLUTELY ESSENTIAL NOW.

GLOBAL COMPETITION IS SO GREAT, AND INFORMATION IS ON SUCH A BLITZKRIEG, THAT NO COMPANY HAS THE RESOURCES, OR ENOUGH RESOURCEFUL PEOPLE, TO GO IT ALONE.

NOT ONLY ARE BUSINESSES WORKING TOGETHER IN JOINT VENTURES AND ALLIANCES WITH SUPPLIERS, AND EVEN WITH COMPETITORS, BUT GOVERNMENT AND INDUSTRY, AND INDUSTRY AND ACADEMIA, ARE ALSO TAKING THE FIRST TENTATIVE STEPS IN AN ATTEMPT TO HANG TOGETHER.

AND HERE OUR GLOBAL COMPETITORS HAVE THE HIGH GROUND. COUNTRIES LIKE GERMANY AND JAPAN INVEST HEAVILY IN SUPPORTING THEIR INDUSTRIES, IN PAYING FOR NEW TECHNOLOGIES, AND IN PLANNING AND WORKING TOGETHER TO MAXIMIZE HOME INDUSTRY’S COMPETITIVE POSITIONING.

IN CONTRAST, UNTIL 1986, IT WAS UNLAWFUL FOR AMERICAN COMPANIES TO EVEN TALK TO EACH OTHER ABOUT ANYTHING COMPETITIVE, LET ALONE SHARE KNOWLEDGE OR RESOURCES.

THAT’S CHANGING... WE’RE BEGINNING TO WORK WITH GOVERNMENT AS NEVER BEFORE IN PEACETIME HISTORY. THE OPPORTUNITY NOW EXISTS TO ACHIEVE GENUINE PARTNERSHIPS.

BUT THE ONUS IS ON US. WE IN BUSINESS HAVE ALWAYS BEEN GOOD AT MINDING OUR OWN BUSINESS, BUT NOW IN THE MIDST OF GLOBAL REVOLUTION, GOVERNMENT POLICIES AND INTERNATIONAL RELATIONS ARE OUR BUSINESS. AND WE HAVE AN OBLIGATION TO GET INVOLVED.

LET ME GIVE YOU A COUPLE OF EXAMPLES FROM EFFORTS THAT I AM PERSONALLY INVOLVED IN BECAUSE I BELIEVE THEY UNDERSCORE OUR NEED TO GET INVOLVED.

FIRST, IS OUR DOMESTIC POLICIES ON ECONOMIC GROWTH. AS IS OBVIOUS TO MOST OF YOU, WE NEED ECONOMIC GROWTH --- GROWTH AT HIGH ENOUGH LEVELS TO GENERATE THE REVENUE BOTH BUSINESS AND GOVERNMENT NEED TO PAY FOR THE TRANSFORMATION TO A KNOWLEDGE-BASED SOCIETY.

WE NEED REVENUE NOT ONLY FOR THE TECHNOLOGIES AND TOOLS... BUT REVENUE FOR VASTLY IMPROVED EDUCATION, AND RETRAINING FOR ALL OF THOSE WITH TRADITIONAL SKILLS WHO ARE THE REAL CASUALTIES OF THIS REVOLUTION.

YET HOW MUCH GROWTH CAN WE SUSTAIN WITHOUT FALLING BACK INTO DOUBLE-DIGIT INFLATION?

THERE IS A GROUP OF ANTI-INFLATION ECONOMISTS RIGHT NOW WHO SAY WE CAN’T ENDURE MUCH GROWTH AT ALL.

THEY CONTINUE TO URGE THE FEDERAL RESERVE TO LIMIT GROWTH TO A MODEST, ALBEIT LACKLUSTER, OF AROUND 2.3 PERCENT ANNUALLY.

NOW, I DON’T WANT TO ATTACK ECONOMISTS.

AFTER ALL, I HAVE A DOCTORATE IN ECONOMICS AND I EVEN TAUGHT ECONOMICS AT WEST POINT. SO YOU MIGHT EVEN CALL ME AN ECONOMIST, IF YOU’RE INTO NAME CALLING.

BUT I’VE GOT TO TELL YOU THAT NATIONAL PLANNING BASED ON A THEORETICAL ECONOMIC MODEL IS FRIGHTENING EVEN TO ME. I MEAN THIS COMES FROM THE SAME ECONOMISTS WHO HAVE PROVEN THEMSELVES BY ACCURATELY PREDICTING 27 OF THE LAST THREE RECESSIONS.

THERE IS AMPLE EVIDENCE NOW THAT THE ECONOMETRIC MODEL THEY ARE USING IS FLAWED.

EXTENSIVE STUDIES OF INFLATION RATES VERSES ECONOMIC GROWTH IN 100 COUNTRIES OVER A 30 YEAR PERIOD HAS SHOWN THAT THE IMPACT INFLATION HAS ON GROWTH IS MINIMAL.

A COUNTRY WHICH REDUCES ITS INFLATION RATE FROM SEVEN PERCENT TO, SAY TWO PERCENT, WOULD SEE GROWTH RISE BY ONLY A LITTLE MORE THAN ONE-TENTH OF ONE PERCENTAGE POINT.

AMERICA’S OWN HISTORY NEGATES THE FED POLICY.

FOR THE PAST 125 YEARS WE’VE BEEN GROWING AT A RATE OF 3.5 PERCENT, AND IT HASN’T EXACTLY HURT US.

AND FOR SOME REASON, THOSE SAME ECONOMISTS DON’T SEEM TO BE CONCERNED THAT OUR GLOBAL COMPETITORS ARE GROWING TWICE AS RAPIDLY AS WE ARE, ALLOWING THEM TO OUT-INVEST US.

THE MESSAGE WE IN BUSINESS NEED TO GET ACROSS IS THAT THE RULES ARE IN A STATE OF FLUX RIGHT NOW. THE REVOLUTION IS REWRITING ECONOMIC REALITY, AND THE OLD INDICATORS JUST AREN’T INDICATIVE OF WHAT’S ACTUALLY HAPPENING.

TAKE FOR EXAMPLE THE GAUGES OF ECONOMIC ACTIVITY, NAMELY INVENTORY LEVELS. TRADITIONALLY, IF YOUR INVENTORY WAS LOW, THAT MEANT DEMAND WAS EXTREMELY HIGH. PRICES WOULD RISE, AND WORKERS WOULD ASK FOR MORE MONEY.

BUT TODAY BECAUSE OF CYBER TECHNOLOGY AND FLOW THROUGH PROCESSES, WE ARE ABLE TO KEEP INVENTORIES CONTINUOUSLY LOW. IT’S CALLED JUST-IN-TIME DELIVERY.

AT TENNECO, FOR EXAMPLE, WE BUILD AUTOMOTIVE PARTS PLANTS RIGHT ALONG SIDE OF AN AUTO MAKER’S ASSEMBLY PLANT. SO WE CAN DELIVER PARTS EXACTLY WHEN THEY ARE NEEDED, ELIMINATING THE COST OF STORAGE, AND EXCESSIVE HANDLING.

SO HOW CAN INVENTORY BE AN INDICATOR?
IT CAN’T.

NOR IS UNEMPLOYMENT A RELIABLE INDICATOR. AT LEAST, NOT THE TRADITIONAL LEVELS OF UNEMPLOYMENT BELIEVED NECESSARY TO HOLD DOWN INFLATION.

TRADITIONALLY, WE FELT IT WAS DANGEROUS TO GO BELOW 6.2 PERCENT UNEMPLOYMENT . ANYTHING BELOW THAT WOULD TRIGGER INFLATION.

ONLY PROBLEM IS THAT THE U.S. HAS HAD UNEMPLOYMENT WELL BELOW THAT FIGURE FOR THE PAST TWO AND A HALF YEARS, WITHOUT THE INFLATION SLIGHTEST INDICATION OF ANY RESULTING INFLATION.

SO FOR FIVE YEARS WITH THE NATIONAL ASSOCIATION OF MANUFACTURERS, WE HAVE BEEN CHALLENGING THE LIMITED-GROWTH STRATEGY, AND WE’VE HAD SOME MEASURE OF SUCCESS GETTING OUR MESSAGE ACROSS.

PRESIDENT CLINTON’S COUNCIL OF ECONOMIC ADVISORS RECENTLY CONCLUDED THAT THE LINK BETWEEN EMPLOYMENT AND INFLATION IS WEAK, IF IT EXISTS AT ALL.

THE FEDERAL RESERVE HAS DONE A TRULY OUTSTANDING JOB HOLDING DOWN INFLATION WITH TRADITIONAL TOOLS... BUT JUST LIKE INDUSTRY IN THE MIDST OF TECHNOLOGICAL REVOLUTION, THE TOOLS HAVE TO BE UPGRADED.

SO WE NEED TO GET OUR NATIONAL ACT TOGETHER... TO AGREE ON STRATEGIES... PLAN TOGETHER, AND TO EXECUTE AS A UNITED ECONOMY.

EQUALLY IMPORTANT, WE NEED TO WORK WITH WASHINGTON TO DEVELOP A UNITED APPROACH TO WORLD TRADE.

THERE ARE MANY CHALLENGES IN TRADE THAT ONLY WE IN BUSINESS CAN HELP GOVERNMENT ADDRESS.

ONE THAT I AM DEEPLY INVOLVED IN RIGHT NOW, FOR EXAMPLE, IS THE HARMONIZATION OF STANDARDS BETWEEN THE U.S. AND THE EUROPEAN ECONOMIC UNION.

HARMONIZING STANDARDS HAS ALWAYS BEEN LIKE HEAVEN, MOST AGREE ITS A GOOD IDEA, BUT NO ONE SEEMS TO BE IN ANY HURRY TO GET THERE.

WHEN I WAS IN UNDERGRADUATE AT M.I.T., THE NEED TO HARMONIZE REGULATIONS THAT ACT AS NON-TRADE BARRIERS WAS A WELL-WORN TOPIC. YEARS LATER ON THE WHITE HOUSE STAFF, WE WERE STILL TALKING ABOUT THE SAME THINGS. AND NOW, AS CHAIRMAN OF THE TRANSATLANTIC BUSINESS DIALOGUE THESE OLD CHALLENGES ARE STILL ON THE TABLE.

WITHOUT STANDARDIZATION, NO COMPANY CAN CREATE GLOBAL PRODUCTS AND BRING THE BENEFITS OF LARGE-SCALE PRODUCTION TO EACH COUNTRY’S CONSUMERS.

UP UNTIL NOW, RESOLUTION HAS ELUDED US BECAUSE NEGOTIATIONS HAVE BEEN LEFT ALMOST EXCLUSIVELY TO CAREER DIPLOMATS.

NOW, I HAVE GREAT RESPECT FOR DIPLOMATS, BUT AS ADALAI STEVENSON NOTED, THEIR LIVES ARE LIMITED MOSTLY TO “PROTOCOL, ALCOHOL, AND GERITOL.”

WHAT WE NEED IS BUSINESS PEOPLE INVOLVED WHO ARE, AT LEAST, NOT DEPENDENT ON PROTOCOL.

THAT’S WHAT MAKES THE TRANSATLANTIC BUSINESS DIALOGUE UNIQUE. IT’S COMPRISED OF C.E.O.S FROM NORTH AMERICAN AND EUROPEAN LARGE AND SMALL COMPANIES.

BUSINESS PEOPLE CAN ADDRESS THE MANY TRADE ISSUES THAT ARE VITALLY IMPORTANT TO US... AND HAVE MORE IMPACT THAN GOVERNMENT-TO-GOVERNMENT NEGOTIATIONS.

TWO YEARS INTO THIS EFFORT, WE ALREADY CAN SEE TREMENDOUS PROGRESS BEING MADE.

WE’VE PUT THE FINAL TOUCHES ON THE MUTUAL RECOGNITION AGREEMENT, WHICH SAYS THAT APPROVAL ONCE IS APPROVAL EVERYWHERE.

AND WE’VE GOTTEN FORMAL APPROVAL ON THIS AGREEMENT, BY THE E.C., THE U.S., AND CANADA.

EQUALLY IMPORTANT, THIS EFFORT HAS DEMONSTRATED THAT GOVERNMENT AND BUSINESS CAN BE EFFECTIVE PARTNERS.

SO IN ATTEMPTING TO COPE WITH THE CYBER REVOLUTION AND RESULTING GLOBAL COMPETITION, THERE CERTAINLY IS NO SHORTAGE OF CHALLENGES.

IN FACT, OUR SITUATION REMINDS ME OF ONE A FAMOUS MARINE CORPS GENERAL FACED IN KOREA.

HIS NAME WAS CHESTY PULLER -- HONEST, I’M NOT MAKING THAT UP. GENERAL PULLER FOUND HIS MARINE DIVISION CUT OFF AND SURROUNDED, SO HE GOT TO HIS FEET AND ADDRESSED HIS TROOPS.

HE SAID, “MEN. THERE ARE 10,000 NORTH KOREANS COMING AT US FROM THE EAST, AND 10,000 MORE HEADING OUR WAY FROM THE WEST. TWICE THAT MANY ARE APPROACHING FROM THE NORTH, AND FROM THE SOUTH 50,000 KOREAN AND CHINESE TROOPS ARE COMING AT US.”

THEN CHESTY PULLER PAUSED AND SMILED [RUB HANDS TOGETHER AS CHESTY WOULD DO], AND HE SAID:

“MEN, I REALLY DON’T SEE HOW IN THE HELL THEY’RE GOING TO GET AWAY FROM US THIS TIME.”

THAT STORY EXEMPLIFIES AMERICAN GRIT AND DETERMINATION IN THE FACE OF SEEMINGLY INSURMOUNTABLE ODDS.

GIVEN A SIGNIFICANT ENOUGH CHALLENGE TO GET OUR ATTENTION, WE HAVE PROVEN, TIME AND AGAIN, THAT WE CAN HANG TOGETHER... AND TOGETHER WE’RE UNBEATABLE.

THE CYBER REVOLUTION IS A CHALLENGE EQUAL TO OUR BEST.

IT IS REDEFINING ALL OF OUR MOST SACROSANCT ECONOMIC MODELS, AND REDEFINING OUR ROLES IN GLOBAL TRADE.

WHAT SHOULD THE NEW MODEL LOOK LIKE?

FRANKLY, I DON’T KNOW. NOR DOES ANYONE ELSE. WE ARE VENTURING INTO UNCHARTED WATERS.

BUT I WOULD SUGGEST THAT WE ENTER THE FUTURE THE SAME WAY AMERICA HAVE LIVED ITS PAST -- WITH BOLT AND DETERMINED EFFORTS.

THE ONLY WAY TO DEFINE THE NEW LIMITS IS TO BOLDLY GO BEYOND THEM.

SO THERE ARE REALLY TWO MESSAGES I WANT TO SHARE WITH YOU TODAY.

AND LUCKILY, BEN FRANKLIN HAD THE FINAL WORD ON BOTH OF THEM.

THE FIRST IS THAT IN TIMES OF GREAT CHANGE, THERE REALLY IS NO SUCH THING AS INDEPENDENCE... ONLY INTERDEPENDENCE.

WE MUST “HANG TOGETHER” WITH GOVERNMENT, WITH ACADEMIA, AND WITH ANYONE WE CAN ENLIST. FOR IF WE DON’T LEARN TO HANG TOGETHER, WE WILL MOST ASSUREDLY HANG SEPARATELY.

THE SECOND MESSAGE WAS SO IMPORTANT TO MR. FRANKLIN THAT HE LEFT IT WHERE WE’D SEE IT EVERY DAY.

LATER ON, YOU MIGHT TAKE OUT A ONE DOLLAR BILL FROM YOUR WALLET AND LOOK ON THE BACK. THERE ABOVE THE PYRAMID, YOU’LL FIND A LATIN INSCRIPTION -- “ANNUIT COEPTIS.”

“ANNUIT COEPTIS” WAS BEN FRANKLIN’S PERSONAL MOTTO. IT MEANS -- “BE FAVORABLE TO BOLD ENTERPRISES.”

WE WERE FAVORABLE TO A BOLD ENTERPRISE ON JULY 2ND, 1776, AND IT’S TIME TO STEP UP TO THAT HERITAGE AGAIN.

“HANG TOGETHER”... AND “BE BOLD.”

IF WE WE DO, WE CAN DEFINE NEW LIMITS... OR MAYBE, JUST MAYBE...WE MAY REALIZE THAT THERE ARE NO LIMITS TO A UNITED, BOLD, AND INDEPENDENT PEOPLE.

Thank you.

# # #

 << back