To change this we must look to governments, for certainly one thing that distinguishes international trade is the role played by governments. Each government makes the rules that apply within its borders. It is Governments that must bargain with each other to achieve "fair trade" and to move toward free trade. Governments must work together to harmonize the basic rules that will optimize world trade. Unfortunately governments everywhere don't function very well and particularly where domestic considerations override actions in the best interest of foreign trade. The actions of our own government were not helpful. On the fiscal side the deficit is frightening and has been financed by foreign investment attracted by high real interest rates. High interest rates, coupled with a tax system that favors consumption and discourages savings, have made it more difficult to modernize our plants and to increase productivity so essential to restore our competitiveness. We have also increased our costs relative to foreign competitors by greater concern for the environment, the consumer, and to enforce our own - but unshared - ideas of moral values. Our anti-trust laws are antiquated in today's world and have put U. S. firms at a disadvantage. We have tolerated discrimination against our goods and unfair trade practices by our trading partners. As if all this was not enough, we let our trade balance be devastated by an over-valued dollar. It seems to be our destiny in a democracy that things have to get unnecessarily bad before we can muster the determination to set things right. However in the last few months we have made remarkable and encouraging progress. Thanks in no small measure to Secretaries Shultz, Baker, and Baldridge we are beginning to move dramatically in the right directions. With the G-5 team and the recent Summit meeting we have seen the promise of inter-government cooperation. We have seen the U. S. dollar decline relative to other principal currencies. A competitively valued dollar will do much to help our trade balance but it won't do it all. We have seen Washington embrace the concept of having an internationally level playing field. U. S. industry cannot afford to be put at a disadvantage against its foreign competition. 6.