Davis Fires Three Overseas Trade Officers

Gov. Gray Davis has abruptly sacked California trade representatives in three of the state’s nine overseas trade offices, raising concerns that he could damage the state’s foreign trade.

Five of the nine trade offices have vacancies. Davis has not named replacements for the officials who have been fired or resigned.

“These positions serve at the pleasure of the governor,” said Trade and Commerce Department spokesman Mike Marando. The Trade and Commerce Department is reviewing applications for new representatives, but many are not expected to be appointed for months.

When Davis took office in January, he informed all appointees of former Gov. Pete Wilson, including the trade officials, that they could remain at their posts until further notice. He began sacking the trade officials this month.

Jon Kaji, removed as the head of the state’s Tokyo trade office, said he was fired by phone April 8 while on vacation in California. Kaji said the Davis administration refuses to pay his relocation expenses back to the state, and will not compensate him for the expense of canceling his apartment lease in Japan.

Kaji had planned to remain on the job until summer, and was intending to help ease his replacement’s way by introducing Davis’ yet-to-be-named appointee to his contacts in Japan.

Given the importance of personal relationship in Asia, the departure of Kaji and other California representatives in Asia could hamper the state’s efforts to secure investments from the Far East.

“It will create a tremendous amount of embarrassment for this administration,” Kaji said.

Kaji, who had run the Tokyo office since 1993, said his operation had helped bring about $2 billion worth of trade and investments from Japan to California.

“All the exempt employees were given notice three or four months ago,” Marando said.

Other offices where the state’s trade representatives have been fired or have resigned include Hong Kong, London, Mexico City and Taipei. Holdovers remain in South Africa, Israel, South Korea and Germany.

Strong exports are among the main reasons for California’s economic recovery since the recession of the early 1990s. However, legislators have criticized the offices, raising questions about whether they generate trade for the state.

Altogether, the state’s foreign trade offices cost $6 million a year.