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economic situation of those countries which have raised the price of energy to something like realistic levels, that have trusted their own citizens to make good judgments given honest information, what you see is that the economies of Japan, West Germany, even Italy have grown much more rapidly and stronger than our own.

As to the question, is the CFC phaseout enough: Clearly not. It is necessary, but not enough. They contribute about 15 percent of the global warming effect, but they, more importantly, actively contribute to the risks of rapid depletion of ozone in the stratosphere, as well.

So by eliminating the most dangerous chlorofluorocarbon compounds, shifting the fluorocarbon to other compounds that can perform the same function, we achieve the economic benefits we want, but reduce both the risks of climate change and the risks of ozone depletion.

Is the policy prescription that I would suggest to you good for Canada and Mexico? Should Mexico underprice its oil and gas or should Canada, even though they can take it out of the ground cheaper than the world price? No, I think not.

A look at developing countries over the last 15 years has shown that those who subsidized energy prices experience severe market distortions, gross inefficiencies and slower than average rates of economic growth. I would argue to you that by raising the price of energy so that if reflects the full cost, we would encourage the creative and innovative spirits of American business to develop those technologies that can meet our real needs while minimizing the emissions of dangerous pollutants into the atmosphere.

The process of doing that will promote the development of technologies that are likely to be at the cutting edge of export development in the end of the 1990's. We need those. We need the partnerships they represent with developing countries and we need to share the economic rents so that the development of these new technologies supports the objectives of both Third World countries and of high-wage jobs in the United States.

Thank you.

Mr. GLAUTHIER. I take it from your question, Congresswoman McKinney, that you are not a scientist. I am not a scientist either, and my colleagues here on the panel have a strong basis themselves in reaching these decisions. I find it very heartening to look at the National Academy of Sciences report, for example, in April of 1991 where our leading scientists examined the issue and came forward with very strong statements that the problem is real, that uncertainties are there, but it is a serious enough problem that we ought to take actions now, and they said it in very clear terms. We should take actions beyond those actions that are simply justified in other ways. We ought to do some things specifically to help br:

roblem under control, and they talked in terms of insur:

One of the concerns that the scientists tell us al certainty in this issue cuts both ways. There is a temperature impacts and sea level rises and the ot could come, just as likely to be at the upper end o. the lower end. So we do need to NĄ have to

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LEE H. HAMILTON, Indiana, Chairman SAM GEJDENSON, Connecticut

BENJAMIN A. GILMAN, New York
TOM LANTOS, California

WILLIAM F. GOODLING, Pennsylvania
ROBERT G. TORRICELLI, New Jersey JAMES A. LEACH, Iowa
HOWARD L. BERMAN, California

TOBY ROTH, Wisconsin
GARY L. ACKERMAN, New York

OLYMPIA J. SNOWE, Maine HARRY JOHNSTON, Florida

HENRY J. HYDE, Illinois
ELIOT L. ENGEL, New York

DOUG BEREUTER, Nebraska
ENI F.H. FALEOMAVAEGA, American CHRISTOPHER H. SMITH, New Jersey
Samoa

DAN BURTON, Indiana
JAMES L. OBERSTAR, Minnesota

JAN MEYERS, Kansas CHARLES E. SCHUMER, New York

ELTON GALLEGLY, California MATTHEW G. MARTINEZ, California

ILEANA ROS-LEHTINEN, Florida ROBERT A. BORSKI, Pennsylvania

CASS BALLENGER, North Carolina DONALD M. PAYNE, New Jersey

DANA ROHRABACHER, California ROBERT E. ANDREWS, New Jersey

DAVID A. LEVY, New York ROBERT MENENDEZ, New Jersey

DONALD A. MANZULLO, Illinois SHERROD BROWN, Ohio

LINCOLN DIAZ-BALART, Florida
CYNTHIA A. MCKINNEY, Georgia

EDWARD R. ROYCE, California
MARIA CANTWELL, Washington
ALCEE L. HASTINGS, Florida
ERIC FINGERHUT, Ohio
PETER DEUTSCH, Florida
ALBERT RUSSELL WYNN, Maryland
DON EDWARDS, California
FRANK MCCLOSKEY, Indiana
THOMAS C. SAWYER, Ohio
(Vacancy)

MICHAEL H. VAN DUSEN, Chief of Staff
RICHARD J. GARON, Minority Chief of Staff

ANNE GREY, Staff Associate

SUBCOMMITTEE ON ECONOMIC POLICY, TRADE AND ENVIRONMENT

SAM GEJDENSON, Connecticut, Chairman JAMES L. OBERSTAR, Minnesota

TOBY ROTH, Wisconsin CYNTHIA A. MCKINNEY, Georgia

DONALD A. MANZULLO, Illinois MARIA CANTWELL, Washington

DOUG BEREUTER, Nebraska ERIC FINGERHUT, Ohio

JAN MEYERS, Kansas ALBERT RUSSELL WYNN, Maryland

CASS BALLENGER, North Carolina
HARRY JOHNSTON, Florida

DANA ROHRABACHER, California
ELIOT L. ENGEL, New York
CHARLES E. SCHUMER, New York

JOHN SCHEIBEL, Staff Director
EDMUND B. RICE, Republican Professional Staff Member
KATHLEEN BERTELSEN, Professional Staff Member
DONNA LA TORRE, Professional Staff Member

PETER YEO, Professional Staff Member

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