Alaska-East Asia trade: new players, new scores.

• Author: Richardson, Jeffrey
• Position: Includes article on two Alaska companies which are developing Asian business partners

With the election of Walter Hickel, Alaska may have become one of the better-connected trading nations on the Pacific Rim. Observers say the new governor's relationships with key players in the Asian arena are substantial and long-standing and could lead to a maturing of Alaska's commercial partnerships with Japan, Korea, Taiwan and China.

Hickel is a longtime visionary of closer ties with the Pacific region, a fact that apparently plays well in those countries who for years have been the state's preeminent customers. As the new year dawned, the governor was preoccupied with budgetary issues and had not selected a new international trade director. Although a number of names were frequently mentioned as likely candidates, there was also speculation that the trade office would be restructured - again.

Several years ago, Alaska's trade director was moved from the Department of Commerce and Economic Development to the Governor's Office, which many people feel gave the position some badly needed prestige for dealing with protocol-conscious partners. Now, Hickel is considering moving the trade director back to commerce. One reason may be Glenn Olds, the governor's choice to be commerce commissioner and himself a longtime cheerleader for high-powered Pacific Rim policies.

Some observers fear that such a move would send a negative signal, that moving the trade office away from the governor might be perceived as diminishing its importance. Another scenario has Olds essentially assuming the trade mantle himself. This would resolve the issue of proximity to Alaska's head of state, but not the possible dilution of Olds'focus on trade due to the press of other commerce duties, critics say.

For his part, Olds has had little to say about the potential change, telling Alaska Business Monthly it was strictly up to the governor. But in the meantime, he has in fact begun pronouncing the cornerstones of what are likely to be Hickel's trade policies, and it is no surprise that continued cultivation of Alaska's Asian markets is a high priority.

Despite the speculation about the state's trade director, it is important to remember that obstacles to expanding trade with Asia are complex and not likely to be directly or substantially influenced by the governor's initiatives. In many cases these hurdles are linked to the outcome of multilateral trade talks between the United States and other nations, as well as to resolution of international crises such as the conflict with Iraq.

The new administration comes to the marketplace at a time when Alaska's Asian trading fortunes have been marked by growth and change. Statistics for the third quarter of 1990, the most recent available, show that Alaska had sold nearly $2.5 billion in fish, timber, coal, petroleum products, minerals and other products to its four Asian trading partners - Japan, Korea, Taiwan and China.

According to federal trade estimates, a billion dollars in Alaskan exports equates to 8,000 Alaskan jobs, a rough but useful yardstick for gauging Alaska's international market performance in real terms.

Third quarter 1990 exports to Japan, Korea and China were running ahead of year-end totals for 1989. The distinction of largest increase in Alaska imports for 1990 goes...