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Schaefer hitting the road to try to boost trade Well-traveled governor going to Japan, Singapore.

THE BALTIMORE EVENING SUN

Like the Methodist circuit rider of old, Gov. William Donald Schaefer is preparing to head out again to spread the gospel of Maryland foreign trade.

The governor will travel to Japan and Singapore, greeting companies already doing business in Maryland and hoping to win new converts in shipping and agriculture.

The 12-day trip starting June 7 will be his ninth trade mission in four years, making him one of the nation's most traveled governors. He has been to Europe, the Soviet Union, Canada, Asia and the Middle East.

In 1990, governors from 26 states made 54 trips abroad, according to the National Governors Association. Schaefer went three trade missions -- second only to the seven trips of then-Gov. James R. Thompson of Illinois.

Schaefer's last five missions have cost taxpayers a total of $613,300, and the next trip is expected to cost about $100,000. Records for trips made during the governor's first two years were not readily available, a spokeswoman said.

State officials contend the expense is worth it.

The value of Maryland's exports has increased from $2.5 billion in 1988 to $3.22 billion last year.

The governor's trade missions have resulted in $140 million of capital investment and creation of more than 800 jobs in the state, according to the Department of Economic and Employment Development.

Maryland businesses agree that the governor's trips abroad have made a difference, but disagree about the extent of his influence.

In some cases, the companies said the governor's missions had a direct bearing on decisions by foreigners to buy goods or build factories in Maryland.

But other times, Schaefer's trade missions are like the parable of the farmer who spread a lot of grain but only a little found fertile soil. And, sometimes, it's obvious that others sowed the grain, and Schaefer stood by with a sickle for the harvest.

For example:

* Schaefer cut the ribbon on a Baltimore Spice plant in Israel during a 1989 trip, but the company had operated there for years and had moved into the expanded facility before the visit.

* He attended the signing of a contract for Evergreen Marine Corp. of Taiwan to move into the Seagirt Marine Terminal last August, but the owner of the company actually made the decision during a visit to the United States the year before.

* The governor attended the signing of a multimillion-dollar contract previously negotiated by Westinghouse Electric Corp. and the Polish Airports Authority to develop an air traffic control system for Poland.

The governor's missions have received unfavorable publicity for spending taxpayer dollars on first-class flights, $125-a-seat opera tickets and stays at first-class hotels. At times, Schaefer has shown less than the expected tact. In 1987, he cut short a visit to the Far East, complaining he was tired. And, after his first trip to Moscow, he called Soviet officials "rattlesnakes."

In March, legislators criticized the governor for leaving them to wrestle with a budget shortfall while he flew off with the ambassador of Kuwait to survey damage in the war-torn country.

But business leaders credit that overture with helping Maryland companies get a head start on doing business in the Mideast.

J. Randall Evans, secretary of the Department of Economic and Employment Development, is adamant that Schaefer's trade missions produce tangible results.

"His involvement makes all the difference in the world," Evans said. "He's head of state. That makes a big difference and opens a lot of doors."

Evans concedes that the impact is hard to quantify, despite attempts by his department to do so.

DEED credits Schaefer's visit to the Netherlands with the decision by AEGON, the parent company of Monumental Life Insurance Co., to keep its U.S. headquarters in Baltimore and to expand its operations by buying an Illinois insurance company.

But AEGON spokeswoman Rosemary Kostmayer said that, at the time the governor visited in 1989, AEGON had already decided to stay in Baltimore and the visit had no effect on the company's decision to expand. "We have a growth strategy in the United States," she said.

The governor's visit has had a positive affect on AEGON's feelings

of good will toward the state, however, she said.

DEED also says the governor was instrumental in a $51.6 million contract between IBM's Federal Section Division in Bethesda and the government of Taiwan.

Michael Fanning, manager of communication and corporate relations, said it is hard to measure the governor's influence on IBM's getting the contract for an air traffic control system. Taiwan's airport authority chose IBM before the governor's visit last August. But a French competitor protested. Taiwan was reviewing the complaint when Schaefer visited top government officials and urged them to select IBM.

In March, IBM won the contract. "It's hard to measure the effectiveness of the governor's visit, but he intervened at a time we needed him," Fanning said.

A number of state businesses praised the governor for his efforts.

"It's not every day that the governor of a state shows up at a parent company to welcome them to his state," said Maryann Ruehrmund, a spokeswoman for Delsey, a French luggage manufacturer. "It was very much appreciated."

Schaefer visited Delsey on his trip to Europe in 1989. Delsey had operated a distribution center and warehouse in Jessup, but wanted to expand into making hard suitcases. The governor's trip helped persuade the company to build a $10 million plant in Caroline County. The state also assisted with a $1.5 million construction loan.

Robert Bonaventure, executive vice president of Beretta USA, said Schaefer played a key role in his company's decision to VTC build a new plant in Pocomoke City. At the time the governor visited Beretta officials in Italy, they were debating a number of locations for a new plant. Bonaventure said the governor and his staff "really helped swing our decision to locate in Pocomoke."

Included in the enticements was a $3.03 million financial aid package to purchase the plant and equipment. But Bonaventure said the governor's mission had an impact. "It was quite a personal thing. It made them feel like it was really wanted."

Terumo Medical Corp., which had operated a plant in Elkton since 1974, credited the governor's visit to its parent company in Taiwan with a decision to expand in Maryland.

Jim Tanaka, manager of general affairs, said a number of factors were involved, including $500,000 in a state matching grant to assist in training the workers and tax abatements from the town and county.

But Tanaka said Schaefer's mission to Japan in 1987 impressed the company and may have influenced the decision to expand more than originally planned. "The visit has a lot to do with it, especially in our society," he said. "A face-to-face meeting is a lot better than the paper flow."

Tanaka said the company is anxiously awaiting the governor's visit next month and is contemplating further growth.

In addition to preaching the benefits of investing in Maryland, Schaefer shepherds a flock of Maryland business people on his trade missions. Some gained clients, others did not.

Tom Koch, president of Curtis Engine & Equipment Inc. of Baltimore, accompanied the governor on his trip to the Middle East in 1989. He attributed business deals to the influence of the state entourage.

"We went in the front door," he said. As a result, he made five calls a day and developed two clients. Curtis now is selling more than $1 million worth of goods to Saudi Arabia each year.

Edwin F. Hale Sr., chairman of Hale Container Line, who accompanied the governor on his visit to the Middle East in 1989 and will join him in Asia next month, said traveling with the governor helped him make important shipping contacts. "The reaction is very positive when you go places in the company of the governor," Hale said. "You cannot gain entree into the top echelons of business unless you're with the governor."

But two visits by the governor to Eastern Europe and the Soviet Union were less fruitful.

PTC International Inc., a Salisbury trading company, tried to negotiate a deal to sell Soviet products in Western Europe and the United States, but has gotten nowhere, said Tai Young Lee, PTC president.

Lee traveled with the governor to the Soviet Union and met important decision makers, but the economic instability has prohibited any agreements.

Showell Farms, an Eastern Shore poultry processor, wanted to ship chickens to the Soviet Union and Poland.

"He [the governor] opened all the doors for us and made it possible for us to meet with all the people we did," said Scott Guerrieri, vice president of sales. "We made tremendous contacts. The only problem is they don't have any money."

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