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ROYAL BANK CHAIRMAN URGES AMERICAN BUSINESS TO OPPOSE PROTECTIONIST ACTIONS BY U.S. GOVERNMENT

 ROYAL BANK CHAIRMAN URGES AMERICAN BUSINESS TO OPPOSE
 PROTECTIONIST ACTIONS BY U.S. GOVERNMENT
 NEW YORK, June 10 /PRNewswire/ -- Allan R. Taylor, chairman and chief executive officer, Royal Bank of Canada (The Montreal Exchange: RY; Toronto Stock Exchange: RY), today called on American business leaders to close ranks with free traders in Canada to oppose protectionist actions by the U.S. government.
 In an address to a joint meeting of the Americas Society and the Council of the Americas in New York City, Taylor urged U.S. corporations to "resist the temptation to join elements of the bureaucracy in resorting to protectionism." (p. 5) Citing the recent rulings on imports of Canadian-built Honda cars and Canadian softwood lumber, Taylor said there is growing cause for concern over two-way trade in steel.
 "I would urge our friends in the U.S. steel industry to be guided by the spirit of the Canada-U.S. Free Trade Agreement in coming weeks. We cannot afford a steel curtain between our two countries." (p. 6)
 Taylor warned that these punitive rulings, combined with new calls for protection for the American steel industry, could contribute to a climate that frightens investors and exporters away from North America. ''Make no mistake. Harassment of Canada serves no one well. It is a threat to the cause of free trade on both sides of the border. Indeed, it threatens the health of the Canada-U.S. relationship as a whole." (p. 6)
 Taylor told the audience Canadians feel the U.S. authorities have been "guilty of counter-productive protectionism." (p. 5)
 "This is not the time to be poking each other in the eye. Both sides will lose." (p. 6)
 Taylor stressed that while isolationist and protectionist sentiments are rising at the grass-roots level in both countries, "in your case, they are rising at the official level, too." (p. 5)
 He noted the close relationship between the economies of Canada and the United States is often underestimated. The annual volume of trade between the two countries is worth about US $215 billion -- more than between any other two countries.
 "Let's maximize the benefits of the vast and growing investment we have in our mutual well-being.'' (p. 6)
 Taylor said Royal Bank supports the proposed free trade agreement between Canada, the United States and Mexico. Once closed, "we can advance to a mega-deal gradually encompassing other countries of the Western Hemisphere." (p. 6)
 In this context, he noted people of the Americas should always be mindful that the goal of regional free trade must be "an open and healthy trading environment." (p. 6)
 History has made it "brutally clear" that humankind cannot afford the creation of "Fortress America," "Fortress Europe," or "Fortress Pacific." (p. 6)
 In the address, highlights of which are to be televised on Public Broadcasting Service stations in the United States this weekend, Taylor also told his audience of executives and academics that the United States has a stake in Canada's survival.
 "If Canada broke up into two smaller and weaker parts, the cause of closer co-operation in the entire hemisphere would suffer a severe blow." (p. 2)
 Taylor cautioned Americans that most of the well-publicized studies of the costs of separation ''blithely ignore four key points:
 "First, that the costs of disrupting the Canadian monetary union would be high.
 "Second, that separation would destroy or weaken Canada's domestic common market.
 "Third, that Canada's stature in the world community would be diminished.
 "Fourth, that increased political instability and economic uncertainty would inhibit investment -- and that means fewer jobs and lower living standards.
 "In other words, Canada and Quebec would both be much less competitive. The productivity gap with the United States would widen at a time when it must close to exploit new global opportunities." (p. 2)
 -0- 6/10/92
 /NOTE TO EDITORS: Copies of the speech are available./
 /CONTACT: Denise Curran-public affairs-Toronto, 416-974-5506; or Langevin Cote-public affairs-Montreal, 514-874-6660, both of Royal Bank/
 (RY.) CO: Royal Bank of Canada ST: Ontario IN: FIN SU:


TQ -- NY024 -- 8717 06/10/92 10:06 EDT
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Date:Jun 10, 1992
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