October 26, 2006 (---Huntsman, 2nd Year---)

"...There’s no question that we can do more with all of our American Indian populations in the state and for that very reason we had a recent summit...on the pressing issues of the day and their education..." -Governor Huntsman

Reporters: (in order of appearance):

KEN VERDOIA, KUED
TOM JORDAN, METRO NETWORKS
DAN BAMMES, KUER
LISA RILEY ROCHE, DESERET MORNING NEWS
RICHARD PIATT, KSL-TV
REBECCA WALSH, SALT LAKE TRIBUNE

Transcript:

KEN VERDOIA, KUED: Governor, thanks for joining us today, in fact, still unfolding yourself on a return from China. Twenty years ago, probably any resident of the United States looking at their governor making a trip to China might scratch their head and say why? Why does it make sense in the twenty-first century for a Utah governor to find his way to China on a trade mission.

GOVERNOR HUNTSMAN: Well I think the simple answer is China has emerged as a leader on the world stage and twenty, thirty years ago the level of trade between Utah and China was anemic. I mean it would have been an asterisk on any ballot sheet, and I spoke when I was over there at a couple of events and I referred to two events in recent history that really have changed that whole dynamic.

One was the Shanghai Communiqué signed in 1972 between Nixon and Zhou Enlai that produced what the Chinese referred to as China’s preparation to enter the world.

And then the second event really was in November of 2001 which was China’s entry in the World Trade Organization which now is being completed this year. They had a five year phase-in period by which they had to basically remove many of their tariff and non-tariff barriers to trade, and so during this period they’ve gone from what would have been effectively you know in the top twenty trading partners 20-25 years ago to what today is number two or three for the United States and number 5 for the state of Utah and this has come out of basically nowhere. And I suspect that in the years to come we’re going to see that China is our state’s largest trading partner.

So the idea that we could take representatives from business and high ed and begin formalizing, deepening, making more meaningful our links with China, it’s going to be a partner for a very long time and we need to understand it better, and we need to develop a level of engagement that is that is more meaningful economically and culturally and educationally and that really was the desired outcome for this trip and I think we hit the mark. Again in building a relationship with China is very much an iterative process, it takes time it takes developing meaningful relationships based upon friendships and showing your willingness to to cultivate economic ties and cultural ties, and so I suspect that in the next year we’ll maybe have a follow-up trade mission maybe that focuses on higher ed as opposed to economic development.

TOM JORDAN, METRO NETWORKS: What tangible things did you bring back as you look at what happened many things you bring back and say we already accomplished this or is this is this the beginning of a long term process?

GOVERNOR HUNTSMAN: Well we can bring back jobs is what we bring back China is our largest export- - fastest growing export market for the United States and I suspect for Utah as well I haven’t seen the numbers specifically for Utah but we’re becoming an export-based economy. We exported six and a half billion bucks last year which was 25% increase over the year before, and so you know where are we exporting, what countries are we exporting to? China again is rapidly emerging as one of our largest export destinations, and as we export we create jobs on this end. So if you take a trade mission over, and if you sign a deal like we did with Wencor, you create jobs on this end, but you know more than that, you create an ongoing relationship that will solidify these commercial ties that I think will be in our interest longer term.

DAN BAMMES, KUER. Governor, several of the companies that accompanied you on this trip are network marketing, multi-level marketing type companies. Do you think they represent Utah well in China? Is that the kind of company that we want to represent Utah abroad?

GOVERNOR HUNTSMAN: Well they represent a big sector economically for us, probably three to four billion dollars worth of our own economy. Aside from skiing and the travel and tourism industry, I think they’d probably be number two. And listen they’ve got rules to abide by both here and in China, under the WTO set of obligations that China embraced, although at five years ago and that will phase out toward the end of this year, the direct selling companies will have to abide by a certain set of guidelines, and they’re pretty strict guidelines and you either abide by them or not. And so you’d have to consider them legitimate participants not only in in our economy but in in China’s economy as well.

LISA RILEY ROCHE, DESERET MORNING NEWS: Governor, you mentioned the Wencor joint venture that was signed in in China. When can Utahns expect to see other concrete results from this trip? You’ve talked a lot about how much time it takes to build relationships and establish the kind of ties that you need that you actually need to do business in China, but given this trip and the expense involved, how soon before there’ll be more concrete results in your mind?

GOVERNOR HUNTSMAN: That’s hard to know anyone who understands China market knows that it takes time and even have expended a great deal of time it’s never a guarantee that you’re going to succeed, but because of the size of the China market and the prominent role that it plays today and will increasingly play you’ve got to take it seriously, and you’d have to talk to the individual corporations to kind of get a read on that.

What is significant about the timing here though is as I mentioned the five year period for the phase-in of all of their WTO obligations is is due December 15th. And so effectively the end of this year the China market place will be shall we say a level playing field for international competition. That has never been the case before so like never before our companies have an opportunity to succeed in what has been an erratic, unpredictable and highly challenging marketplace. And so being introduced right at this period when they’re about to achieve a level playing field with a lot of good years beyond, and you’ve got to remember that the China market is growing on average 8-10% for 25 years now, probably in economic development terms probably the most remarkable success story in terms of sheer growth that we’ve ever seen in history of humankind. So it is a market to be taken seriously there will be a a more of level playing field by the end of the year, and I think it’s good that Utah companies are taking it seriously. To the extent that I can help by maybe showing them the way opening a door or two so much the better that’s kind of what I’m supposed to be doing in part as a governor.

LISA RILEY ROCHE, DESERET MORNING NEWS: But Utah isn’t the only state looking to take advantage of that opportunity. Within the last year alone I guess there have been ten trade missions led by governors including California’s Governor Arnold Schwarzenegger, who I understand was quite a draw over there. What does Utah have to offer that these other states don’t? How can Utah get a competitive edge over these other states that are trying to do exactly what you’ve just described?

GOVERNOR HUNTSMAN: That’s really up to the individual corporations, but those that we are featuring, I mean those that are direct selling companies, were obviously very competitive in that sector. Those that are in engineering and environmental sciences, aerospace work, we had represented some prominent sectors in which we’re increasingly competitive. And then it's- - once the playing field has been leveled, which is really the job of government negotiators, then the private sector steps in and it’s up to them whether or not they’re competitive, and I’m not sure that we can do much beyond that which we’ve already done to ensure that.

KEN VERDOIA, KUED: When people think of your experience in Asia, they point clearly to your role as an ambassador and a trade representative, but there’s actually another experience that comes before that, and back in 1983 you were an advanced representative for the ultimate cold warrior Ronald Reagan and his trip to China. Can you compare the two Chinas that you’ve now seen, the one that you’ve seen in the 21st century and the one you first experienced as a very young man with Ronald Reagan in the early 1980’s?

GOVERNOR HUNTSMAN: Early 1980’s China was very much still coming out of the cultural revolution mentality that played out from about 1967 to about 1977, 1978, where there was very little in the way of human movement. There was very little in the way of openness economically. I think that the two most identifiable changes in the years since 1983, my first trip, really have been the ability of people to move within the country. For example I met different individuals at some of my stops who were traveling, vacationing if you will, from other corners of China, something that would have been unheard of in 1983. So there’s greater mobility within the country.

And secondly there is a greater there- - there’s been an economic uplift since 1983 that really has been quite extraordinary. What I visited in 1983 in Shanghai was the Rainbow Commune, a model commune, right next to the Huangpu River in a place called Pudong. Today it is a gleaming, modernesque skyline with one of the tallest television towers, tallest hotels, bustling economy, stock exchange, all of this new since 1983. So the economy certainly is a feature that has changed rather significantly.

Politically there sadly there hasn’t been a lot of change. They are having local elections kind of at the experimental level, which is a good thing, but in terms of a political opening since 1983, that would be a hard case to make. The economy, yes. Movement and mobility of people, no question about it in terms of recognizing human rights practices, positive movement there.

China could never have thought of holding the Olympic games back in the 1970’s 1980’s, yet we’ll see them in 2008 host the world. And it means the world’s going to be watching, and it means that everything they do and have done in recent years is going to be on display and there for the world to critique and talk about. And that to my mind is one of the more important events that will play out in the life of the Chinese people because they will be evaluated based upon certain international standards.

TOM JORDAN, METRO NETWORKS: The state office of tourism, I gather, is going to Shanghai to a major tourism fair in November, and clearly you’ve been laying the groundwork for what has appeared to be one of those areas where we do have something which is an advantage. We have the western scenery that everybody is familiar with, from movies and such, the Monument Valley world, along with the image we’ve had from the Olympics. This would seem to be very fertile ground for this emerging middle class. Is that likely to be the case?

GOVERNOR HUNTSMAN: I think it’s a fair comment and I’ve long argued that the travelers and tourists from the Pacific Rim will probably be our most important customer base over the next 20 years, and why? Simply because you’re seeing greater uplift economically in places like China and in India. You’re seeing the emergence of a middle class, that for the first time, can afford to leave their state or their province. And third you’re seeing the transportation links that are beginning to emerge that allow people to go from one continent to another. And that is one area that we’ll obviously have to improve are the links that take one over the Pacific Ocean, and then we’ve got plenty of links that bring people to Utah. But we did our best to try to leave behind the message that Utah is the quintessential western state, with iconic scenery, and when people think about the wide open west with all of its natural beauty and charm. The other thing about Utah, and I think that, I hope that was the message that at least hit the mark with those who were there and that we can continue through a travel tourism campaign, begin to get there, because people that are going to travel are going to tour, and by the millions they are going to come across the Pacific Ocean. And the question will be, do they come here, or do they go somewhere else in the west to experience the quintessential American west? And we hope they come here because it’s good for the bottom line. It helps to pay for schools.

DAN BAMMES, KUER: Governor, let’s come back home for just a minute. The private fuel storage project on the Skull Valley Goshute reservation isn’t quite dead there’s still some talk about pursuing it Lawrence Bear the new leader of the Goshute tribe is a supporter of the project. Is there any way to finally put that to rest or do we have to deal with a project that has been constrained by every legal process imaginable and still seems to have life in it?

GOVERNOR HUNTSMAN: I think it’s dead and I’ve said it’s dead for some time now and when the Interior Department stepped up and effectively canceled their lease, that was a signal loud and clear that this thing is dead is not likely to reemerge. And I think the recent elections there among the members of the Goshute band would I think further highlight that point. When you have somebody like Margene Bullcreek who comes out and who’s long been opposed to it and says she likes the outcome of the election I think that’s pretty encouraging.

KEN VERDOIA, KUED: Governor, you’ve said you had to wait until this was resolved but you said once it was resolved, you were going to reach out to the Skull Valley band. You were going to work with them to forge a different future for that small group of native Americans out there. It seems like that time is now at hand. Are you contemplating making that move towards them reconciliation if you will?

GOVERNOR HUNTSMAN: No there’s no question that we can do more with all of our American Indian populations in the state and for that very reason we had a recent summit last month an American Indian Summit, first time it’s ever been held for all of those who share land within our state. And I would argue that with all of the American Indian populations who are part of our landscape in Utah that we share common resources. We share air. We share water. We share common borders, and our attempt at the summit, and I think we succeeded, was to share views on the pressing issues of the day and their education, their health care, their environmental, and in some cases you know their issues like drug abuse. And we had representatives from all of the tribes there. We did not have anyone from the Goshute band. I was saddened by that, but again they’re going through some transformation in terms of leadership, and we know now who the new leader is and we would expect to reach out and do with the Goshute band what we have done with every other American Indian population here in the state.

RICHARD PIATT, KSL-TV: We are currently embroiled in the election cycle the campaign season less than two weeks away. I understand that you’re supportive of Proposition 3 in Salt Lake County which raises the sales tax a quarter cent to fund transportation projects. This time however voters are going to the polls without a definitive priority list -- one two three -- of transportation projects. They're going on the knowledge of just basically a wish list of projects. Part of the reason is the legislature didn’t act with enabling legislation to allow that priority list to exist because House Speaker Greg Curtis went with you to China. So the question is don’t voters have the right to vote on a priority list with specific projects in mind? And number two was it worth Speaker Curtis going with you to China as a tradeoff?

GOVERNOR HUNTSMAN: Well you’d have to talk to Speaker Curtis about his China trip. He was over in Asia visiting his parents and he- - at the tail end of his visit to his parents, who I believe are living in Myanmar. He dropped through China for a couple of days. Now you’ll have to talk to him about the timing of all that.

And I don’t know to what extent his visit to Asia impacted the response by the legislature. I think we all should realize that the cogs, the local government officials basically, will produce a priority list on these transportation projects, and I think we all know what they are going to be, and I don’t think anyone will be surprised by whatever that list is. And they’re going deal with commuter rail, and they’ll deal with light rail, and with hopefully funding for a corridor space. We’ve got to preserve corridor space for mountain view corridor, and those are going to be the three areas that I think will emerge as priorities. They always have been priorities. So the fact that we don’t have a priority list here today, I don’t think should discourage anyone from voting for this particular proposition. We need it. It will fast track our infrastructure needs by half, which is extremely important. We’re a rapidly growing demographic. We have a density of population along the Wasatch Front that is no different from any other big city, whether it’s Detroit or Los Angeles. And we have a lot of needs, and whether there are specifics today or a week or two from now, we should all know, you know basically the range that these specifics will fall under. And that the most important point of all is that this will fast track and expedite our infrastructure needs by about half, fifteen years as opposed to thirty years and I think that’s an important point all by itself.

REBECCA WALSH, SALT LAKE TRIBUNE: Governor, the state is preparing to send a petition to the federal government for management of the national forests and the petition that Utah has prepared doesn’t set any other doesn’t request any additional protection for any of the national forests does that mean that you think there shouldn’t be any extra protection in the national forests for the four million acres that are roadless.

GOVERNOR HUNTSMAN: No not at all I I think that that there should in fact be protection on a case by case ongoing basis which is exactly the way this will work. We have until November 13th to finalize this petition as every other state does and you have to realize we’re kind of in a state of legal flux right now with the Wyoming Federal Court basically having struck down the Clinton doctrine of 2001, only to be followed up by a federal court in California that basically did just the reverse. So I suspect the public policy aspects of this, at least from a legal standpoint, will will be debated for some time to come probably next in appeals court and maybe even to the supreme court at some point. What is important from my stand point is that we maintain a policy that will ensure healthy forests. And last time I visited one of our forests not long ago just to the east of Cedar City, I didn’t find a healthy forest -- bark beetle infestation and what that left behind so what- -

REBECCA WALSH, SALT LAKE TRIBUNE: Are you saying that they should be open to logging or development?

GOVERNOR HUNTSMAN: No I’m not saying that at all I’m saying we need to maintain a level of flexibility with the Forest Service who then will determine ongoing on a case by case basis who will then have access which I think is appropriate these are Department of Agricultural lands managed by then by the Forest Service.

We’ll take our petition we’ll turn it over to the Forest Service Department of Agriculture November 13th and they then will undertake their own review and who knows where that will go. And then most of the issues beyond that will be determined by the Forest Service on a case by case basis, and I think the kind of partnership that we’re trying to strike with the Forest Service that will have as our goal healthy forests long term. Respect for these forest lands is something that we very much want to achieve, that I personally want to achieve.

REBECCA WALSH, SALT LAKE TRIBUNE: So you don’t see the petition changing before November 13th?

GOVERNOR HUNTSMAN: Oh it could, it’s still open for another week and then the Forest Service is going to take it after that it could change at that point and so this is very much an iterative process and made a little more complicated by ongoing court cases that could change things as well.

We have lovely forest lands, and we all know what we need to protect and you know that which needs flexibility, for example, for firefighting and for healthy forests. I couldn’t believe the state of the forest just east of Cedar City when I went to visit it. It had been devastated and part of it is because there there wasn’t an adequate management plan for the healthy forest, and in order for a healthy management plan to be maintained you have to have access to the forests.

You’ve got to be able to fight fires. You’ve got to be able to preserve them in some way, shape or form, and so the way you achieve that is to strike some sort of balance with the Forest Service, and that is maintaining a policy of flexibility, which is what we’re endeavoring to do, knowing full well that we’re dealing in an environment that could change as we go forward.

RICHARD PIATT, KSL-TV: Governor, let’s go to one of your favorite topics which is the gas price situation. We all hear people continually complaining about it, although I am not sure consumer behavior is backing that up, which is I believe emboldened the oil companies to basically say you know we’re not going to help you out, state investigation, we’re just not going to tell you what we know. Should state government get involved in gas prices more somehow do you think?

GOVERNOR HUNTSMAN: I don’t know the answer to that. I do know this and that is we have done everything at my disposal, given the current circumstances, and that’s to use effective the bully pulpit and I’ve used it and I’ll continue to use it.

Now the legal aspects will be covered by the Attorney General’s Office, which I know continues to monitor the situation, and maybe we leave open the option for anything beyond that.

I kind of let the bottom line numbers determine whether or not we have been effective and I look at the delta between local prices and state prices a year ago, and they were probably 12-15%. A month ago there was probably a 35% delta between local prices and national prices. Today where you can find the cheapest gas at $2.20 at the Maverik in Bountiful, there is probably a 12-15% delta so we’re we’re getting back to where we were a year ago.

RICHARD PIATT, KSL-TV: But isn’t it but part of the reason the oil companies or the gas stations or whoever’s you know, whatever’s happening are able to get the prices the money is because people are willing to pay it. I mean that’s what capitalism is is based on so it sounds like you’re reluctant to to intervene in that in that process is frustrating to my- - if people don’t like it they could just not pay the price.

GOVERNOR HUNTSMAN: If I were reluctant to intervene, I wouldn’t have said anything to begin with but I’ve talked out repeatedly- - gone so far as to put on our website the cheapest gas available encouraging people to pursue the cheapest gas available, as I’ll do today. It’s the Maverik $2.20 in Bountiful and Costco is much higher than that.

So the market place will take it where it will, and the attorney general will do whatever he thinks is appropriate. We’ve done everything that I think we can do, given the tools at our disposal and the current set of circumstances, and I’m pleased that prices are moving in the right direction, and I won’t be totally satisfied until we basically meet the national numbers, which is where we were basically when this whole journey began, if not lower than the national numbers.

KEN VERDOIA, KUED: Governor, we have only one minute left in our time together so I wanted to bring you back to a subject we need to touch on and that is the state’s financial status at the present time. Speaking with your staff before and I said it must be wonderful to deal with a $500 million dollar surplus as opposed to a $500 million dollar deficit, and they said a state legislator gave them the best observation: Always ending in the black is a good thing but ending in the black a little bit is better sometimes than having so much money because it creates its own dynamic. With about 30 seconds, what about that dynamic of a $500 million dollar surplus does it create its own set of challenges?

GOVERNOR HUNTSMAN: It means we can prioritize and we can focus like never before on things like education and transportation. And those are going to be two priorities that you saw come out of the last session, and that will certainly come out of this upcoming session. It gives us more flexibility. It gives us more opportunity to pursue ideas and programs that will make the state a better place going forward.

KEN VERDOIA, KUED: Governor, thank you for your time. A reminder that a transcript of this and every edition of the Governor's News Conference is available online check our website for details. Until next time I’m Ken Verdoia, goodnight.

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