The Foreign Service Journal, January 2003

J A N U A R Y 2 0 0 3 / F O R E I G N S E R V I C E J O U R N A L 3 T HE M AGAZINE F OR F OREIGN A FFAIRS P ROFESSIONALS Foreign Service Journal (ISSN 0146-3543), 2101 E Street, N.W., Washington, D.C. 20037-2990 is published monthly by the American Foreign Service Association, a private, non-profit organization. Material appearing here- in represents the opinions of the writers and does not necessarily represent the views of the Journal, the Editorial Board or AFSA. Writer queries and submissions are invited, preferably by e-mail. Journal subscription: AFSA Members - $9.50 included in annual dues; others - $40. For foreign surface mail, add $18 per year; foreign air- mail, $36 per year. Periodical postage paid at Washington, D.C., and at additional mailing offices. Postmaster: Send address changes to Foreign Service Journal , 2101 E Street N.W., Washington, D.C. 20037-2990. Indexed by Public Affairs Information Service (PAIS). The Journal is not responsible for unsolicited manuscripts, photos or illustrations. Advertising inquiries are invited. The appearance of advertisements herein does not imply the endorsement of the services or goods offered. FAX: (202) 338-8244 or (202) 338-6820. E-MAIL: journal@afsa.org. WEB: www.afsa.org. TE LEPHONE: (202) 338-4045. © American Foreign Service Association, 2003. Printed in the U.S.A. Send address changes to AFSA Membership, 2101 E Street N.W., Washington, D.C. 20037- 2990. Printed on 50 percent recycled paper, of which 10 percent is post-consumer waste. J O U R N A L OREIGN ERVICE S F Editor S TEVEN A LAN H ONLEY Associate Editor S USAN B. M AITRA Business Manager M IKKELA V. T HOMPSON Ad & Circulation Manager E D M ILTENBERGER AFSA News Editor S HAWN D ORMAN Art Director C ARYN J. S UKO Editorial Intern S TEPHEN Y EATER Advertising Intern D RÖFN H ARDARDOTTIR Editorial Board A RNOLD S CHIFFERDECKER , C HAIRMAN J UDITH B AROODY M ARK W. B OCCHETTI E LIZABETH S PIRO C LARK M AUREEN S. D UGAN C AROL A. G IACOMO L AURIE K ASSMAN C AROLINE M EIRS H OLLIS S UMMERS W ILLIAM W ANLUND T ED W ILKINSON F O C U S O N F C S 21 / T HE B USINESS OF A MERICA I S E XPORTS Overall, prospects for the Commercial Service look good. But a number of short-term and long-term factors could threaten its work. By Bob Guldin 29 / P IANO P LAYERS IN A M ARCHING B AND : FCS O FFICERS AFSA’s FCS Vice President counts the ways that FCS officers are different from their Foreign Service, Civil Service and private-sector colleagues. By Peter Frederick 34/ G OING G LOBAL WITH THE U.S. C OMMERCIAL S ERVICE The U.S. Commercial Service helps U.S. businesses, particularly small and medium-size ones, sell their products and services globally. Here’s how. By Maria Cino 39 / T WO D ECADES ON THE R OAD L ESS T RAVELED The creation of FCS was far from painless, but over the past 22 years the agency has made substantial progress. Now it must continue on that path, using new tools. By Stephan Helgesen 44 / FCS R ECOLLECTIONS A retired FS officer who “jumped the ship of State” reviews his experience in the FCS, from his presence at the creation to the challenges of pre- and post-reunification Germany. The conclusion? If he had it to do all over again, he would. By Jack Bligh C ONTENTS J a n u a r y 2 0 0 3 Vo l ume 8 0 , No . 1 L EE B OAM : T HE F OREIGN C OMMERCIAL S ERVICE IN A CTION / 51 The Commercial Office at Embassy Beijing is the largest in the world. Meet the FSO who runs it. By Shawn Dorman U.S.-C HINA T RADE : A N E CONOMIC S ECTION V IEW / 54 The Sino-American economic relationship requires close cooperation between the commercial section and the rest of Embassy Beijing. Here is the economic section’s perspective. By Robert Wang F E A T U R E A PPRECIATION / 61 Laurence M. Foley, 1942-2002 C O L U M N S P RESIDENT ’ S V IEWS / 5 Telling Our Story By John K. Naland S PEAKING O UT / 15 The Courage of Our Convictions By Ken Moskowitz FS F INANCES / 18 Claiming the Tax Exclusion for Gain on Home Sales By Edward J. Michal R EFLECTIONS / 72 By Philip Breeden Cover and inside illustrations by Jeff Moores Page 21 D E P A R T M E N T S L ETTERS / 7 C YBERNOTES / 12 B OOKS / 64 I NDEX T O A DVERTISERS / 70 AFSA N EWS / C ENTER I NSERT