05-27-2000

INSIDE WASHINGTON: Inside Washington for May 27, 2000

Heads Up, UAL, K Street Is Mobilizing


The efforts of United Airlines and US Airways to obtain a federal green
light for their mega-merger will be met by an explosion of lobbying from
opponents of the deal. The American Society of Travel Agents worries about
the potential for reduced competition and price inflation. The Business
Travel Coalition, a group of frequent-flying corporations, hopes that
small and midsize airlines will coalesce against the deal, fearing that
the alternative-merging themselves to keep pace-could be expensive and
messy. But the bigger carriers, sensing that United and US Airways would
give ground on competitive-access issues to get the deal done, may have
horse-trading on their minds. "A lot of airlines would never try to
prevent the merger, but I would not be surprised if they tried to profit
from it," one lobbyist said. "Everyone in town who represents an
aviation interest is looking at it."


Al Gore and FDR; Is That a Ticket, or What?


Franklin Delano Raines, a running mate for Al Gore? Despite a resume most
overachievers only dream about, and the potential to be the first
African-American to hold the job, Raines plays down the possibility.
"I look at it as my friends playing a huge practical joke on
me," says Raines, former Clinton Administration budget director and
now head of mortgage wholesaler Fannie Mae. The job would, of course,
entail a major pay cut (last year he drew $4.3 million, plus stock
options). But Raines, who has three young daughters, stresses family
concerns: "As my wife has said, she doesn't mind if I do it as long
as I don't mind being described as `recently divorced.' "


The Rewards of Indecision on China


Look for a snowballing of thank-you fund-raisers for key House members
who, brows furrowed, announced-shortly before the big vote-that, after
deep soul-searching and meditation, they'd back normalizing trade
relations with China. Rep. Charles B. Rangel, D-N.Y., a potentially
pivotal undecided member until several days before the May 24 vote, will
be recognized next month for his (eventual) clearheadedness. His campaign
war chest will presumably be topped off at the event, which is being
orchestrated by Bergner Bockorny, a lobbying firm that represents the
Business Roundtable. Separately, Rep. Martin Frost,


D-Texas, emerged from the undecided's den, sniffed the air, and-just
before he publicly embraced China-called Motorola Corp. to see if they
could help arrange a money bash for him. No promises, but don't be
surprised if Frost is accommodated, sooner rather than later.


Bill Daley's Giant-Panda Ploy


Now it can be told: In the drive to win House backing for PNTR, the White
House considered exploiting China's most welcome export-the giant panda.
Idea was to speed up delivery of a pair of panda cubs slated to replace
the pair (now deceased) given to the United States after Nixon's
history-making flight to Beijing. Commerce Secretary William M. Daley even
raised the ploy with China. The thought was that cuddly TV images of the
pandas might soften China's image on Capitol Hill. No deal, but the cubs
are still due later this year.




National Journal