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Kantor's nomination

shows Clinton supports

Commerce agency

WASHINGTON: President Bill Clinton's appointment on Friday of tough trade chief Mickey Kantor as Commerce secretary sends a strong message to U.S. economic rivals and Republicans that he is is not backing away from his support of the agency as a promoter of American exports.

The surprise move to name Kantor as successor to the late Ron Brown won widespread praise from U.S. business leaders.

But some experts wondered if it would leave a void at the U.S. Trade Representative's office and said it may mean that trade policy will stay steady until the November elections.

Clinton named Kantor's deputy, Charlene Barshefsky, as Acting U.S. Trade Representative (USTR).

"Kantor is an excellent choice to take over the Commerce Department because his practical experience as the U.S. Trade Representative allows him to hit the ground running," National Association of Manufacturers President Jerry Jasinowski said.

A close ally of Clinton's, Kantor takes over the reins at Commerce at a delicate time for the department, which has been under attack from the Republican-led Congress for being a bloated bureaucracy.

Brown, who died last week in a plane crash while on a trip to promote U.S. business in Bosnia, had proved an effective advocate of the department in the battle over its future and Clinton undoubtedly expects Kantor to take up the cudgels.

Although the Republicans are likely to declare a temporary truce in the fight to dismantle the department out of respect for Brown, congressional sources expect the lawmakers to renew their attack after a decent interval.

Clinton's move to name Kantor Commerce chief has already drawn fire on Capitol Hill.

By appointing Kantor while Congress was in recess, rather than nominating him subject to Senate confirmation, Clinton bypassed a potentially nasty battle on Capitol Hill.

Barshefsky, Kantor's successor as trade representative, also has a reputation for toughness and is widely admired for her negotiating skills.

But some analysts suggested she may find herself at a disadvantage in bargaining with other Clinton officials and America's foreign rivals because of her position as acting, rather than full-fledged, U.S. trade chief.

The first test of that will come next week, when Barshefsky will represent the administration at the quadrilateral trade meeting among the United States, Canada, Europe and Japan in Kobe, Japan.

"It's a mistake," said Mike Smith, a former deputy trade representative who himself temporarily served as acting trade chief under former President George Bush. "This is a dangerous moment for (the office of) USTR."

Smith, who now works for the government and public liasion company Capitoline/M S and L, said Barshefsky will find it difficult, no matter how much she is liked inside the administration.

Even before Kantor's sudden departure from USTR, American trade policy looked to be pretty much on hold until the elections, analysts said.-Reuter