Pitt walked over to an unoccupied desk and picked up the phone. He dialed the safe-line number given out by Kern at the MAIT team briefing. When a voice answered on the other end, he said, “This is Mr. Stutz. Please tell Mr. Lincoln the problem lies in his car’s air conditioner. Goodbye.”
Percy gave Pitt a humorous look. “You really know how to stick it to people, don’t you?”
“I do what I can.”
Yaeger sat gazing at the interior of the compressor he’d enlarged on the display screen. “There’s a fly in the soup,” he said quietly.
“What?” asked Percy. “What is that?”
“So we piss Japan off and they punch out our lights. They can’t eliminate all of our defenses, especially our nuclear submarines. Our retaliation force would disintegrate their entire island chain. If you want my opinion, I think this thing is unfeasible and suicidal. It’s one big bluff.”
“There’s one small problem with your theory,” Percy said, smiling patiently at Yaeger. “The Japanese have outfoxed the best intelligence brains in the business and caught the world powers in their Achilles’ heel. From their viewpoint the consequences are not all that catastrophic. We contracted with the Japanese to help research the strategic defense system for the destruction of incoming missile warheads. While our leaders wrote it off as too costly and unworkable, they went ahead with their usual hightech proficiency and perfected a working system.”
“Are you saying they’re invulnerable?” asked Yaeger in a shocked voice.
Percy shook his head. “Not yet. But give them another two years and they’ll have a working in-place ‘Star Wars’ system, and we won’t.”
24
Behind closed doors in the Capitol building a select subcommittee was meeting to investigate and evaluate Japanese cultural and economic impact upon the United States. The fancy words were a nice way of saying that certain members of Congress were mad as hornets over what they perceived as a United States held hostage by the ever tightening screws of Japanese capital.
Ichiro Tsuboi, chief director of Kanoya Securities, the largest security company in the world, sat at a table below the long, curved counterlike desk in front of the congressional committee. He was flanked by four of his chief advisers, who irritated the committee members with their jabbering consultations before Tsuboi answered each question.
Tsuboi did not appear as a financial giant who led a securities company that had enough capital to swallow Paine Webber, Charles Schwab, Merrill Lynch, and the rest of Wall Street’s honored brokerage houses without so much as a burp. He had, in fact, already purchased heavy interest in several of them. His body was short and slender, and he had a face that some likened to that of a jolly proprietor of a geisha house.
Tsuboi’s looks were deceiving. He could easily hold his own against a protectionist Congress with fire in their eyes. His competitors in Japan and abroad hated and feared him with reasons bred from experience. Tsuboi was as ruthless as he was shrewd. His canny financial manipulations had elevated him to the level of a cult figure whose contempt for America and the European nations was hardly a well-guarded secret. Wall Street’s cleverest investment brokers and corporate raiders were pigeons next to the guru of the Tokyo Stock Exchange. Almost single-handedly he possessed the power to knock the props from under the American economy.
He sat and politely fielded the questions of the select committee, smiling with maddening courtesy throughout the questioning, speaking as comfortably as if he was conversing with guests over a dinner table.
“For the esteemed members of Congress to pass legislation forcing Japanese companies to sell our majority rights in our United States businesses to your companies at a fraction of their value is nothing less than nationalization. American business credibility will be shattered around the world. There will be chaos. Banking systems will collapse along with international currencies. Industrial nations will be bankrupted. And for what purpose? In my humble opinion, Japanese investors are the best thing that ever happened to the American people.”
“There is no such legislation in the works,” snapped Senator Mike Diaz. “What I said was ‘Those of your companies operating and showing a profit on American soil should be subject to the same regulations and tax standards as ours.’ Your capital markets remain closed to us. Americans are restricted from buying real estate and ownership in your businesses, while Japanese interests are getting away with financial murder in this country, Mr. Tsuboi, and you damn well know it.”
The one man who was not intimidated by Tsuboi was New Mexico Democrat Michael Diaz, chairman of the committee, the driving force behind a movement to not only limit but roll back foreign investment in American government, business, and real estate, and if he had his way, raise trade embargoes on all imported Japanese products.
A widower in his late forties, Diaz was the only senator who lived full time in his office. He kept a small private bath and a side room with a bed, refrigerator, stove, and sink. Over the twenty-five years he had been called the hardest-working politician on the hill, his work patterns had remained unchanged. His wife had died of diabetes shortly after he was elected to his first term. They were childless, and since her death he never gave a thought to remarrying.
His hair was pure black and swept back in a high pompadour, the face round and brown with dark umber eyes and a mouth that easily flashed white perfect teeth. As an Army helicopter pilot in Vietnam he had been shot down and wounded in the knee. Captured and carried to Hanoi, he spent two years as a POW. His jailers had never properly attended to his leg, and he limped, walking with the aid of a cane.
A hard-liner against foreign influence and involvement in American affairs, Diaz had fought for trade restrictions and high tariffs, and against what he saw as unfair trade and investment practices by the Japanese government. He saw the fight with Japan as more than an economic battle but as a financial war, with the United States already the loser.
“Mr. Chairman?”
Diaz nodded at an attractive female member of the committee. “Yes, Congresswoman Smith, go right ahead.”
“Mr. Tsuboi,” she began, “you previously stated that the dollar should be replaced with the yen. Don’t you think that’s a bit extreme?”
“Not when you consider Japanese investors finance fifty-five percent of your budget deficit,” replied Tsuboi with an airy wave of one hand. “Conversion of your currency to ours is only a matter of time.’
Congresswoman Loren Smith of Colorado couldn’t believe she was hearing such talk. Tall, striking, with cinnamon hair cut long to frame her prominent cheekbones and violet eyes, she represented a district west of the continental divide. Tight-packed with energy, she was as elegant as a lynx and daring as a tomboy. Respected for her political cunning, she carried a great degree of clout in the house.
Many powerful men in Washington had tried to win her favors on and off the House floor, but she was a private person and dated only men who had nothing to do with business and politics. She carried on a loose secret affair with a man she deeply admired, and was comfortable with the thought that they could never live together as intimate friends or as husband and wife. They both went their separate ways, meeting only when it was convenient.
“How can we become closer than we are now?” asked Loren. “The assets of Japanese branch banks in the United States far outnumber the combined assets of American banks. Over a million Americans already work for Japanese employers in this country. Your lobbyists have for all practical purposes bought our government. You own eighty billion dollars’ worth of prime U.S. real estate. What you mean, Mr. Tsuboi, is that our two nations become even closer so yours can dictate our economy and foreign policy. Am I correct? Please answer.”