Rep. Gail Phillips, Speaker of the Alaska House of Representatives, Speaks Before the Alaska World Trade Center's Monthly Forum

August 5, 1998

Thank you Pete Nelson, Vice Chair, World Trade Center for that nice introduction.... Robin, WTCA members and everyone here for taking the time from your busy day to listen to a politician at lunch time!!!

In preparation for today's presentation, I have been reviewing the incoming and outgoing delegations and the amount of business traffic to and from Alaska. I am astonished at how much we, the Legislature and you, the private sector and state government, have been doing all over the world.

In the last six months, the Alaska Legislature has welcomed the new Japanese Consul General to Alaska, the new Chinese Consul General to San Francisco and the new Russian Consul General to Seattle.

We have honored outgoing Consuls General Vlaskin (Russia) , Shinomiya (Japan)and Miller Floyd (Vladivostok). We have coordinated meetings with twelve delegations from Novisibirsk (telemedicine), Sakha Republic (health and disaster efforts), Vladivostok (banking), Magadan (mining and business), Sakhalin (oil & gas plus Duma relations) and Khabarovsk (forestry, manufacturing plus Duma relations) in the Russian Far East and Korea (fresh seafood buyers), Japan (air transportation and seafood), China (diplomats) and Venezuela (oil & gas), to name a few.

Alaskan business folk are traveling the globe and finding business opportunities. Buying cement in Indonesia, building oil field facilities in Venezuela, setting up joint ventures in Sakhalin, Vladivostok and Magadan.

Since our Diplomatic Legislative Mission last fall, the Alaska Resource Association now numbers 26 members and four firms have set up operations on Sakhalin Island. Alaskan companies have also secured contracts to build port facilities, housing, health care and much more in the Russian Far East.

When we see business executives like Ken Thompson from ARCO relocate to Los Angeles to work with Alaska and Asia and Mark Boudreaux leave for Houston, where he will oversee Exxon operations in the Russian Far East, we know that Alaska is very much a launch pad to international business, especially in the Pacific Rim.

What has the Alaska Legislature been doing to help secure Alaska's place on the international front? Quite a bit, actually. Since taking control of the legislature, Republicans have passed effective measures to keep Alaska's own house in order. New laws that promote a positive business climate.

We passed tort reform, promoted sound oil and gas development, created business incentives to lure new economic activity to Alaska and, kept the natural gas pipeline project moving ahead.

We believe that government's role is to pave the way for a private sector that creates good jobs for Alaska's working families. In keeping with Anchorage's position as "The air crossroads of the world."

The legislature this year passed the airport revenue bonds--$179 million dollars--to make the Anchorage International Airport into a truly world-class facility that reflects its position as a hub for some ninety percent of transpacific air cargo.

We passed legislation to develop stranded oil and gas reserves on the north slope and in Cook Inlet, with an eye toward the export of both of those resources. We also put the legislature on record in support of a stable fiscal and regulatory climate for the proposed natural gas pipeline and in support of oil and gas lease sales in the national petroleum reserve Alaska.

We have passed legislation to turn Alaska into a national and international center for administering trusts. Alaska's new and uncomplicated trust laws make it a perfect choice for setting up trusts in the eyes of the financial community.

The list of good legislation goes on. But, more than legislation, we have, quite literally in some cases, gone out of our way to strengthen Alaska's international ties.

Just last September, Senate President Mike Miller and I led a delegation of legislators, state officials and business leaders to the Russian Far East. We made great progress with our legislative counterparts in both Khabarovsk and Sakhalin, who are eager to learn more about Alaska's laws and regulations, especially those that relate to resource development, commerce and free enterprise.

We were very encouraged to see firsthand the interest the Russians have in us and in our government. We made many friendships, rewarding both on the human level and on the professional level, the sort of friendships that build the trust and camaraderie one needs to do business anywhere, but, especially, in Russia.

I want to encourage your involvement in all aspects of international activities such as sister city and state relationships, student exchanges and humanitarian relief. While not directly involved in trade, they make important contacts that will make a difference in the future trading potential of a region. These all enhance our international trade policy efforts.

It is relationships that are going to guide the world economy, long term relationships. The Alaska Legislature is firmly committed to securing and sustaining these relationships. We need to stand by our Pacific Rim partners and weather the current financial storms.

Our Office of International Trade Policy has gone from half time in 1995 to a full time position last year. Having a Special Assistant on International Trade Policy on staff demonstrates the ongoing commitment of the Alaska Legislature to provide a point of contact for all international issues.

As a result of our legislative exchange efforts with Sakhalin and Khabarovsk, the US Agency for International Development has funded translation of our Laymen's Guide to the Budget Process, Separation of Powers, Passage of a Bill, Swiss Army Guide to the Budget, and we are working on a identifying Alaska best laws on oil and gas development issues into Russian.

Further, the Citizens Democracy Corps funded by the US Information Agency is funding a two week program for Ronda Thompson to work with the Khabarovsk Duma to review their budget process and perhaps adapt some of Alaska's measures. This a first for CDC... to work with the regional governmental Duma instead of the private sector, which further expands our role in the Russian Far East.

We are working to continue our legislative exchanges with Khabarovsk and Sakhalin Dumas to observe each other's election procedures. Two members from each Duma will visit us to observe the August primary elections and the general election in November.

In addition, the Gore-Kiriyenko Ad Hoc Working Group (AHWG) has just invited Alaska legislators to participate in the upcoming annual meeting in Sakhalin to discuss creating a new legislative reform sector. These are all a direct result of having an Office of International Trade Policy staff to coordinate and expand our interest in international issues.

This is an election year. Encourage your elected officials to support international efforts on every level. State officials have a tendency to focus on their districts and not see the importance of global relations and how it effects each and every one of us.

I believe that we need to achieve a better balance and be less parochial in our views of sustainable economic development. You need to help educate us. Tell us what roadblocks you encounter in doing business abroad, particularly as it relates on a regional level. We are quickly learning that state legislators do have a role in supporting our private sector internationally.

We all need to work together to promote Alaska in a global economy. There is a world trade development role for legislators, governors and other elected officials with the state trade offices, private non profits and other non-governmental organizations.

Our competition is no longer in Washington or Texas or Louisiana. It is from Chile, Norway, Sri Lanka, Singapore, Argentina, the Philippines.......... you get the picture!!!! To quote John Wesley, an 18th century theologian, "Do all the good you can, by all the means you can, in all the ways you can, in all the places you can, at all the times you can, as long as you ever can."

Thank you. And now, if you will indulge me, we will take a walk down memory lane. ..........(slide show commences)