MINUTES 
          
                   SENATE INTERIM COMMITTEE ON NORTH AMERICAN 
                          FREE TRADE AGREEMENT (NAFTA) 
                            Monday, October 13, 1997 
                                    9:00 a.m. 
                       University of Houston Hilton Hotel, 
                                 Houston, Texas 
                                 Public Hearing 
          
                                      ***** 
          
         Pursuant to a notice posted in accordance with Senate Rule  
         11.11, a public hearing of the Senate Interim Committee on  
         North American Free Trade Agreement was held on Monday,  
         October 13, 1997 at the University of Houston Hilton Hotel in  
         Houston, Texas.   
          
                                      ***** 
          
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
              Senator Carlos F. Truan, Chairman       Senator Steve  
         Ogden 
              Senator John Carona 
              Senator Mario Gallegos, Jr. 
              Senator Eliot Shapleigh 
          
                                      ***** 
          
         The Chair called the meeting to order at 9:15 am.  There being  
         a quorum present, the following business was transacted.  The  
         Chairman recognized Senator Gallegos to introduce University  
         of Houston Chancellor-President Arthur K. Smith for welcoming  
         remarks.  The Chairman made opening remarks and recognized  
         special attendees Jorge Canavati, Mexican transportation  
         specialist from Houston; Scott P. Flukinger, Economic  
         Development Officer for the Canadian Consulate General's  
         Office in Dallas; and State Senator Jon Lindsay. 
          
         This was the Committee's organizational meeting for the 75th  
         Interim.  Chairman Truan greeted the members present, and  
         proceeded to lay out the proposed Committee Rules for  
         adoption.  Senator Carona moved to adopt the proposed rules  
         and Senator Gallegos seconded the motion.  The motion carried  
         with a vote of 4 ayes, 0 nays, 0 present not voting, and 1  
         absent.  Chairman Truan next introduced the Committee Staff  
         for the 75th Interim and discussed the Committee's Interim  
         charges, noting that the Committee's Interim Report  
         recommendations will be drafted into legislation.  The Chair  
         announced the Committee will hold other hearings across the  
         State.  There being no further organizational business, the  
         Chairman closed that part of the meeting. 
          
         Chairman Truan recognized Bob Evans, Chairman of the Rail  
         Committee to the National Industrial Transportation League  
         (NITLeague) to brief the Committee on the Union Pacific  
         Railroad service problems in Houston, Texas.  A discussion  
         followed.  The Chairman recognized Bob Starzel, Vice President  
         of the Western Region for Union Pacific Railroad to brief the  
         Committee on current efforts of the Union Pacific Railroad to  
         resolve their service problems.  A discussion followed.  The  
         Chairman recognized Joe Heastie, Products Manager for Mexican  
         Markets for Union Pacific Railroad, to brief the Committee on  
         the status of international rail deliveries to Mexico.  A  
         discussion followed. 
          
         Chairman Truan recognized Richard Schieffelbein, Railroad  
         Coordinator for the Port of Houston Authority, to brief the  
         Committee on the quality of rail service into the Port of  
         Houston.  A discussion followed. Other witnesses testifying  
         and registering on the subject are shown on the attached list. 
          
         The Chair recognized Senator Gallegos for an introduction of  
         Max Castillo, President of the downtown University of Houston  
         campus.  The Committee recessed for lunch at 12:10 p.m. and  
         resumed at 1:20 p.m.  After reconvening, Chairman Truan  
         accepted testimony regarding NAFTA's impact on Texas  
         transportation.  Witnesses testifying and registering on the  
         bill are shown on the attached list.  Mr. Jorge Canavati, at  
         the request of the Committee, provided testimony on the status  
         of several Mexican transportation projects.  A discussion  
         followed.  The Chairman also recognized Mr. John Wright,  
         architect from Corpus Christi, as being in attendance.  There  
         being no further business, at 4:55 pm Senator Truan moved that  
         the Committee stand recessed subject to the call of the Chair.   
         Without objection, it was so ordered.   
          
         ______________________ 
         Senator Carlos F. Truan, Chair 
          
         ______________________ 
         Carla D. Buckner, Clerk