Deukmejian Opens State Trade Office in Europe

Gov. George Deukmejian opened California’s second overseas trade and investment office Monday and pressed British officials to allow more U.S. films to be shown on English television.

British Trade Minister Paul Channon told the California governor that he is not sure TV viewers here should see more American television. Deukmejian said Channon was “a little bit joking.”

Joking or not, however, the British minister specifically mentioned the popular U.S. series “Dallas” and “Dynasty” as questionable TV programs for the English, according to a Deukmejian aide who attended the private meeting. Channon advised the governor, “I wouldn’t try to build your case (for increased trade) on trying to export American television over here.”

From Los Angeles, the president of the Motion Picture Export Assn., Myron Karlin, said in a telephone interview that it does not matter much anyway, because the U.S. film industry is doing a “sizable” business with Great Britain. He refused to say exactly how much, citing association policy.

Objects to Quotas

Although Karlin said he objects in principle to quotas that permit only 12% of BBC-TV programming to be non-British produced (14% on independent television), he added: “I have to be honest. I’d like to tell you we’re losing a hell of a lot of money, but I can’t. I wish to hell the whole world were (buying American films) like Great Britain.”

The governor’s speech writer and chief trade adviser, James Robinson, said Deukmejian raised the TV issue--first during a press conference at the California office opening and later with British officials--because the state’s World Trade Commission has flagged it as a major film industry concern.

Deukmejian also pushed the British to widen their markets for California aerospace, telecommunications and agricultural products, asserting that for him and other “free-trade” American politicians to hold the line against “protectionists,” it will be necessary to reduce the U.S. trade deficit.

Less Focused

However, this gubernatorial trade trip seemed to be less focused than a similar mission Deukmejian made three months ago to Japan, where the issues were more obvious and defined.

“There aren’t any real trade problems between the United Kingdom and the United States, let alone California,” acknowledged Steven A. Merksamer, the governor’s chief of staff.

The U.S. trade deficit with Great Britain last year was $4.6 billion, compared to $58.6 billion with Japan. This was based on two-way trade of $27.4 billion and $112.2 billion, respectively, between the countries.

For California alone in 1985, the last year for which figures are available, the trade deficit with Great Britain was $500 million, in contrast to $19 billion with Japan. This was based on two-way trade, respectively, of $2.7 billion and $35 billion.

Later this week in Brussels, Deukmejian will confront officials of the European Economic Communities--colloquially called the Common Market--with what California farmers consider to be a serious dual problem of highly subsidized European agriculture and restrictions on foreign imports.

The new office Deukmejian opened here was set up to promote California products and investment in the state, not only among European countries but also with African and Middle-Eastern nations.

The office is near the U.S. Embassy in a little third-story flat that rents for $4,800 a month in London’s high-priced real estate market. Still, it is less than half the $10,000 rent California is paying for its recently opened Tokyo office.

Washington Lobbyist

Deukmejian chose as director of the European office James R. Philips, 62, a former deputy assistant Commerce secretary in the Reagan Administration who previously had been a business executive based in San Diego and London. As No. 2, the governor named Isabella Kaliszczak, 30, who has been his trade lobbyist in Washington.

Deukmejian poured California champagne--a 1982 Schramsberg cuvee de pinot from the Napa Valley--for the roughly 20 state, U.S. government and British officials, plus some journalists, who crowded into a small room for the ceremony.

Monday night, Deukmejian and his aides were the guests at a British VIP reception hosted by the California Chamber of Commerce at the residence of U.S. Ambassador Charles Price.

“Many of you think that California is mainly interested in the Pacific Rim,” Deukmejian told the several hundred guests, “but we have not in any way lost our interest in, nor would we ever neglect, our good friends here in the United Kingdom or Europe.”

Deukmejian did a lot of sight-seeing last weekend, visiting the underground war cabinet rooms of WWII Prime Minister Winston Churchill, the Tower of London and Windsor Castle.