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there is an inadequate recognition in the United States of the changes that are taking place in Europe. It is true that deregulation is still not concluded. You mentioned the United Kingdom, but you could have mentioned other countries in Europe.

If you take the German example, there is access to wireless networks, and American companies are part of this process. I do not know of any German company that would be part of an American wireless market. There is a change coming up in cable networks that will be demonopolized within the next years, and a number of countries will compete in this market as well, besides German Telecom.

German Telecom is going to be demonopolized; it is going to be privatized. But it is a worker-oriented approach. People who worked for German Telecom went into this company for lifetime employment. Now the company has to cut employment by 80,000 people within a short time, so it is quite natural that they have to take some account of how to manage this.

So to that extent there is some social component in it. But this does not rule out that, in the end, this will be a consumer-oriented process that will be different from the American market. But it will be highly competitive and quite in line with what is going on in other countries of Europe.

One final thing regarding access in the components market. Mirroring the U.S. market in Europe may very well mean that, instead of public procurement, you will have nonpublic consumption by the private telephone companies. And what will you do if AT&T or some other company does not get into this network? Would you then apply 301 according to the Japanese automobile example?

This is the other side of the mirror of course. There is no public procurement in the United States. It is all private buying. And without any transparency.

RANDOLPH LUMB: To briefly respond, I believe that Europe is on the right road to liberalization, and 1998 seems to be the date that they say that it will occur. But competition and liberalization are distinctly different. It takes time for competition to become whole.

I hope that this move will allow the Europeans to make a commitment to open their markets to competition not only among themselves, but among others, the United States included.

In that regard, that would be a foundation of private, commercial companies competing with each other in a global market, not unlike private commercial companies competing with each other between Europe and the United States today.

That then says that procurement becomes private and commercial. And if you make a mistake and you buy something incorrectly, then you suffer the consequences of that capital acquisition in the marketplace, not under the protection of a regulator.

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