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Context of 'September 1986-1991: Reagan Administration Forces Asian Countries to Open Markets to US Cigarettes Companies'

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Members of the Reagan administration run a secret shadow government that operates outside of official channels and circumvents Congressional oversight. The Miami Herald reports in July 1987: “Some of President Reagan’s top advisers have operated a virtual parallel government outside the traditional cabinet departments and agencies almost from the day Reagan took office, Congressional investigators and administration officials have concluded.” Figures involved in the secret structure include Lieutenant Colonel Oliver North, National Security Adviser William Clark, CIA Director William Casey, and Attorney General Edwin Meese. Secret contacts throughout the government act on the advisers’ behalf, but do not officially report to them. The group is reportedly involved in arming the Nicaraguan rebels, the leaking of information to news agencies for propaganda purposes, the drafting of martial law plans for national emergencies, and the monitoring of US citizens considered potential security risks. The secret parallel government is tied to the highly classified Continuity of Government (COG) program, originally designed to keep the government functioning in times of disaster. From 1983 to 1986, North reportedly leads the parallel structure from his office in the Old Executive Office Building across from the White House. Sources tell the Miami Herald that North’s influence within the shadow government is so great that he can alter the orbits of surveillance satellites to monitor Soviet activity, launch spy aircraft over Cuba and Nicaragua, and “become involved in sensitive domestic activities,” which apparently include monitoring US citizens with sophisticated surveillance software (see 1980s). The existence of the secret structure is uncovered during investigations into the Iran-Contra affair, but the details of the shadow government are never fully disclosed. During the hearings, Representative Jack Brooks (D-TX) is prevented from questioning North regarding his involvement (see 1987). In a secret memo to the chairmen of the Iran-Contra committee, Arthur Liman, chief counsel to the panel, writes that behind the arms scandal is a “whole secret government-within-a-government, operated from the [Executive Office Building] by a lieutenant colonel, with its own army, air force, diplomatic agents, intelligence operatives, and appropriations capacity.” Some officials interviewed by the Miami Herald believe the group of advisers first formed during the late stages of Reagan’s 1980 presidential campaign (see October 1980). [Miami Herald, 7/5/1987]

Entity Tags: William Casey, William Clark, Arthur Liman, Edwin Meese, Jack Brooks, Reagan administration, Oliver North

Timeline Tags: Civil Liberties

Richard Allen.Richard Allen. [Source: David Hume Kennerly / Getty Images]After Ronald Reagan takes office, he appoints 33 members of the powerful, far-right Committee on the Present Danger (see 1976) to his administration, 20 of them in national security positions. Reagan himself is a member, as is:
bullet Kenneth Adelman, the US’s deputy representative to the UN;
bullet Richard Allen, Reagan’s assistant for National Security Affairs;
bullet William Casey, director of the CIA;
bullet John Connally, a member of the Foreign Intelligence Advisory Board;
bullet Jeane Kirkpatrick, US ambassador to the UN;
bullet John Lehman, Secretary of the Navy;
bullet Michael Novak, the US representative on the UN’s Human Rights Commission;
bullet Richard Perle, Assistant Secretary of Defense for International Security Policy;
bullet Eugene Rostow, director of the Arms Control and Disarmament Agency;
bullet George Shultz, Secretary of State.
The CPD members in the Reagan administration are able to convince large portions of the American public that the US faces a grave and imminent threat from the Soviet Union, even though the Soviet Union is on the verge of dissolution. CIA official Melvin Goodman, who will resign in 1990 over the increasingly blatant politicization of intelligence on the Soviet Union, will say that the tremendously exaggerated estimates of the Soviet Union’s military strength “meant that the policy community was completely surprised by the Soviet collapse, and missed numerous negotiating opportunities with Moscow.” An extensive study by the General Accounting Office (GAO) will show that military officials consistently exaggerate the Soviet threat in order to get Congress to fund the largest defense buildup in the nation’s history. [Unger, 2007, pp. 58-59]

Entity Tags: Eugene V. Rostow, General Accounting Office, Melvin A. Goodman, George Shultz, Kenneth Adelman, Jeane Kirkpatrick, Committee on the Present Danger, John Lehman, William Casey, Michael Novak, John Connally, Richard Perle, Ronald Reagan, Richard V. Allen

Timeline Tags: Neoconservative Influence

The Reagan administration’s Office of the US Trade Representative (USTR) pressures several countries—under threat of sanctions—to open their markets to American cigarettes: Japan in September 1986, Taiwan in late 1986, and South Korea in May 1988. By 1991, sales of American cigarettes in these new markets are 600 percent higher than they would have otherwise been without US intervention, according to the Boston-based National Bureau of Economic Research. The Bureau also notes that American tobacco companies’ cheap prices and sophisticated advertising campaigns increased average cigarette consumption per capita by nearly 10 percent in the targeted countries. Much of the new demand for cigarettes was created among women and young people. [Washington Post, 11/17/1996; South-North Development Monitor (SUNS), 8/8/2000]

Entity Tags: Office of the US Trade Representative (USTR), Reagan administration

Timeline Tags: Neoliberalism and Globalization

Senator Norm Coleman, chairman of the Foreign Relations Western Hemisphere subcommittee, holds a hearing in which he says that a “tough response” against Mexico would be “warranted” for “unilateral renegotiation of NAFTA.” Present at the hearing are Bush administration officials and leaders of agribusiness interest groups. Jim Quackenbush, board member of the National Pork Producers Council, complains of a Mexican anti-dumping case against US hog exports and claims his goods are often halted at the border for “alleged sanitary concerns.” He calls for the US to “use all available means” to keep Mexico’s market open to US agricultural goods. Allen Johnson, chief agriculture negotiator in the office of the US Trade Representative, says that the US will work to defend its interests and is ready to retaliate if Mexico does not accede to its demands. [US Congress, 5/20/2003 pdf file; Star Tribune, 5/21/2003]

Entity Tags: North American Free Trade Agreement, Senate Foreign Relations Committee

Timeline Tags: Neoliberalism and Globalization

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