05-13-2000

POLITICS: Showdown in Silicon Valley

SAN JOSE, Calif.-Voters in other congressional districts around the
country might want to know where candidates stand on health care and
taxes. But here, in California's 15th Congressional District, they're just
as likely to ask about H-1B visas or computer export controls.


The district lies in the heart of Silicon Valley and features a race that
pits Republican Jim Cunneen, a 38-year-old former high-tech company
executive who is tech savvy, against Democrat Mike Honda, a one-time Peace
Corps volunteer, teacher, and principal. Both are members of the state
Assembly.


"Any congressional race will take into account local district
characteristics," said Gary Jacobson, a political science professor
at the University of California (San Diego). "That race has striking
high-tech characteristics."


Despite its Democratic leanings, the district seat has been held since
1995 by moderate Republican Tom Campbell, who is leaving the House to run
for the Senate. Wedged south of the San Francisco Bay between Silicon
Valley's two other congressional districts, held by Democrats Anna G.
Eshoo and Zoe Lofgren, the 15th's biggest employers include such high-tech
heavyweights as Intel Corp. and IBM Corp.


The high-tech industry is closely monitoring the contest. Those executives
backing Cunneen see his candidacy as an opportunity to place one of their
own in Congress. "It's a spectacular situation to have someone who is
actually from high tech," said Michael C. Maibach, the vice president
of government affairs for Intel, whose political action committee is
backing Cunneen. "He has been an outstanding friend of the high-tech
industry."


Both candidates are courting the high-tech industry and support such
industry priorities as increasing the availability of temporary H-1B visas
for skilled foreign workers, approving permanent normal trade relations
for China, and permanently extending the research and development tax
credit.


Still, Cunneen and Honda could not be further apart in personality,
experience, and focus. "Jim's strength is truly that he has a
stronger emphasis on new economic issues," said Carl Guardino, the
president of the Silicon Valley Manufacturing Group, a nonpartisan group
focused on quality of life and economic issues. "Mike's strengths are
that he has tremendous ties to traditional Democratic
constituencies."


Cunneen is doing his best to cast the race as a referendum on the new
economy vs. the old economy. He says he is the candidate best equipped to
represent such a dynamic district, and maintains that his opponent's true
allegiances are to labor unions and trial lawyers. During a recent
interview at his San Jose campaign office, Cunneen jumped up from behind
his laptop computer and eagerly delved into the details of some of his top
priorities. He said he would "clamor for changes in export controls
over high-performance computers"-rules that computer companies argue
are hampering their ability to compete with foreign companies. And he said
he would support a five-year extension of the moratorium on certain
Internet taxes.


"I'm the only member of the state Legislature who's ever worked for a
Silicon Valley high-tech manufacturing company," said Cunneen, who
was global corporate affairs manager for Applied Materials, a
semiconductor equipment manufacturer. He also highlighted his political
experience, which, in addition to serving in the state Assembly, included
stints as an aide to Campbell and former Rep. Ed Zschau, R-Calif. He said
he wants to bring this "dual experience" to Congress.


Cunneen touts the backing he has received from high-tech industry leaders,
such as Cisco Systems CEO John T. Chambers and former Netscape
Communications Corp. CEO James Barksdale. In June, Chambers is holding a
fund-raiser at his home for Cunneen.


And many high-tech company representatives-and even some Democrats-concede
that Cunneen has much stronger support from the industry than Honda does.
"Overwhelmingly, most tech companies are supporting Jim," said
one industry representative, who generally favors Republicans. "Most
people know him as a colleague."


Honda presents himself as someone who will do a better job of representing
the interests of all the district's constituents, not just technology
companies.


"The interesting thing is that high-tech executives do not tell their
employees how to vote," said Lofgren, who served with Honda on the
Santa Clara County Board of Supervisors. "The fact that CEOs are
writing checks doesn't necessarily mean their programmers [or other
employees] ... will do the same thing."


Even Cunneen's supporters concede that Honda enters the race with a slight
edge, given the district's Democratic tilt. President Clinton carried the
district in 1992 and 1996.


Honda out-polled Cunneen 39 percent to 33 percent in California's March 7
open primary, in which all candidates run on the same ballot. The
Democratic vote totaled 59 percent, although Honda faced a much more
competitive race for his party's nomination than Cunneen did. At 58, Honda
is 20 years his opponent's senior. He spent his early childhood in
Colorado in a World War II internment camp for Japanese-Americans. A
well-known local politician, he began his public service career in 1971 on
the San Jose City Planning Commission, and went on to serve on the school
board, the board of supervisors, and the state Assembly. At Clinton's
urging, Honda reluctantly agreed to run for Congress.


Sitting outside his district office in downtown San Jose on a warm and
sunny spring afternoon, the affable and low-key Honda interrupted an
interview a handful of times to shoot the breeze with familiar
passersby.


He rejects Cunneen's efforts to label him as a newcomer to his high-tech
positions, saying "I understand life is a continuum, and the economy
is a continuum." Still, Honda does not pretend to know the intricate
details of many high-tech issues. When asked what he would do about the
current computer export control system, Honda acknowledged he is not
familiar with the issue. But when asked about what long-term solutions he
would seek to the high-tech industry's need for skilled workers, he
provided a lengthy explanation of how education is a "key component
for continued growth and success."


"It drives everything else," Honda said. "High-tech gets
it. That's why they've been involved in so many educational reform"
efforts.


John J. Pitney Jr., a professor of government at Claremont McKenna College
in Claremont, Calif., said that high-tech issues are "only part of
the mix" in a district that has experienced unprecedented growth in
recent years. "A lot of the people in the area don't have a direct
connection to the industry," Pitney said. "So other things are
going to come into play."


The Silicon Valley Manufacturing Group's Guardino agrees, citing traffic,
affordable housing, and education as some of the key issues of importance
to voters.


Cunneen acknowledged that high-tech industry support will take him only so
far. So he is also promoting himself as a moderate in the mold of
Campbell. A fiscal conservative and social moderate on such issues as
abortion rights and the environment, Cunneen has on occasion sided with
Democrats on matters such as gun control. "I'm a candidate who can
identify" with the district's voters, said Cunneen, the father of two
young children. "They want better schools, to feel safe in their
neighborhoods. I understand this all flows from a sound
economy."


Still, Democrats will attempt to paint him as a reactionary conservative
in the mold of House Majority Leader Dick Armey, R-Texas, and Majority
Whip Tom DeLay, R-Texas. That tactic failed during the 1995 special
election when Democrats attempted to tie Campbell to then-House Speaker
Newt Gingrich, R-Ga.


Cunneen can distinguish himself from Campbell in one area of keen
importance to the high-tech industry: trade with China. Campbell opposes
granting China permanent normal trade relations, whereas Cunneen is a
staunch supporter.


And some industry officials say they want to hedge their bets in the
House, which could go to either party in November, by maintaining a
bipartisan delegation in Silicon Valley.


"We have two Democrats" representing the valley, said one
industry lobbyist. "It's nice to [also] have a Republican that
represents ... the heart of Silicon Valley."


Juliana Gruenwald is a senior writer with Technology Daily.


Juliana Gruenwald

National Journal