Source: CNN

July 10, 1998

Web posted at: 11:01 p.m. EDT (0301 GMT)

WASHINGTON (CNN) -- On a hot summer day in the world's most powerful nation, at least some of its leaders found their attentions preoccupied by thoughts of ... Beanie Babies.

A spokesman for U.S. Trade Representative Charlene Barshefsky, America's tough-talking trade negotiator, admitted Friday that Barshefsky had run afoul of an American trade law when she returned with President Clinton from China.

While in China, Barshefsky purchased a number of Beanie Babies -- her staff won't say how many, but the Washington Post reports it was 40 -- to take home, presumably to her two young daughters.

Beanie Babies are a hot commodity as a collector's item for adult Americans as well as toys for children. The Washington Post, quoting a "source close to the White House delegation," reported on July 3 that Barshefsky bought the bevy of Beanie Babies while in Beijing.

Beanie Babies are made in China for Illinois-based Ty Inc. At the request of Ty, the U.S. Customs Service has placed a limit of one Beanie Baby per family for people re-entering the United States.

Upon her return to work this week, Barshefsky asked her legal staff to determine whether the purchases had violated any U.S. trade laws or regulations.

'Scouring the streets of Beijing'

An aide says that when informed of the one-Beanie-per-family rule, Barshefsky voluntarily turned over all of her purchases to Customs officials.

The aide said Barshefsky was unaware of the Customs limit or the details of the agreement Ty has with China that prohibits the sale of any of the toys in China.

But Republican National Committee Chairman Jim Nicholson issued a news release Friday, implying the transaction was fraught with a darker meaning.

"Instead of trying to reduce our $50 billion trade deficit with China, our trade representative was scouring the street markets of Beijing grabbing up every illegal, black market Beanie Baby she could get her hands on," he said.

But Jay Ziegler, a spokesman for Barshefsky, said Nicholson had misrepresented the facts. Ziegler would not discuss how many Beanie Babies Barshefsky brought back, but he said she turned in "the whole batch" on Wednesday when she became aware of the federal rules.

"This is an obscure regulation," Ziegler said, "and she has gone by the book and more in setting an example and complying with this restriction."

A waiver is possible

Barshefsky was a top trade attorney with a Washington law firm for 18 years before joining the Clinton administration in 1993. She has campaigned vigorously since then for a crackdown on Chinese copyright piracy.

Ty attorney James White said he did not fault Barshefsky for failing to understand all of the regulations governing Beanie Babies. He also said that Customs regulations allow people whose items are seized to apply for a waiver.

"Many times, a person's purchases are detained by Customs," White said. "If we are convinced it is for personal use and they are not selling the product, then we waive the detention. If she asks for one, we would issue a waiver."