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Originally Processed With FOIA(s): FOIA Number: 2009-0166-S 2009-0166-S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Office of the President Series: Daily Files Subseries: OA/ID Number: 90548 Folder ID Number: 90548-007 Folder Title: Friday, May 25, 1990 Stack: Row: Section: Shelf: Position: V 12 11 7 7 Withdrawal/Redaction Sheet (George Bush Library) Doc. No. / Type Subject/Title Date Restriction Classification 01. Schedule Schedule of the President [redaction] (1 pp.) 05/25/90 (b)(3) 02. Schedule The Trip of the President and Mrs. Bush to Kennebunkport, 05/90 (b)(7)(c), Maine, May 25-28, 1990 [redaction] (3 pp.) (b)(7)(e), (b)(7)(f) 03. Log White House Telephone Log [Signal Switchboard] [redaction of 05/25/90 (b)(6) personal information] (1 pp.) 04. Note Handwritten notes of Presidential Phone call with President 05/25/90 (b)(1) Endara (1 pp.) 05. Note Handwritten notes of Presidential Phone call with Violetta 05/25/90 (b)(1) Chamarro (1 pp.) 06. Form Request for Appointments [redaction of personal information] (1 05/25/90 (b)(6) pp.) Page 1 of 1 Collection: Record Group: Bush Presidential Records Office: Office of the President Series: Daily Files Subseries: WHORM Cat.: File Location: Friday, May 25, 1990 Pinksheet Number: dw1702 OA/ID Number: 90548-007 Date Closed: 5/7/2010 FOIA/Sys Case #: 2009-0166-S Re-review Case #: P-2/P-5 Review Case #: Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 01. Schedule Schedule of the President [redaction] (1 pp.) 05/25/90 (b)(3) Collection: Record Group: Bush Presidential Records Office: Office of the President Series: Daily Files Subseries: WHORM Cat.: File Location: Friday, May 25, 1990 Date Closed: 5/7/2010 OA/ID Number: 90548-007 FOIA/SYS Case #: 2009-0166-S Appeal Case #: Re-review Case #: Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile SCHEDULE OF THE PRESIDENT Friday, May 25, 1990 7:55 am Photo with Dr. John Prunier Oval Office (5 min) and Family (Presock) 8:00 am Intelligence Briefing Oval Office (15 min) (Scowcroft/Sununu) 8:15 am National Security Briefing Oval Office (30 min) (Scowcroft/Sununu) Meeting with Governor Sununu Oval Office 8:45 am (30 min) 9:15 am Drop by Meeting of President's Roosevelt Room (5 min) Council on Science and Technology (Bromley) (TAB A) Administrative Time Oval Office 9:20 am (40 min) 10:00 am Photo recognizing National Oval Office (5 min) Missing Children's Day Bush Presidential Library Photocopy (Rogich) (TAB B) 10:05 am Personal Staff Time Oval Office (25 min) Depart for Kennebunkport South Lawn 10:30 am (TAB C - Trip Schedule) SUPPLEMENTARY BRIEFING MATERIALS TAB D - Briefing on Local Issues (Anderson) TAB E - Political Background Report (Wray) sen. 6:58 add sunver 7:02 add Darm T Dopinice 7:45 Gov. sununudpts 7:53 Darman dpts 7:56 Domenici out 7:57 add Dr. Prunier + family 8:04add Gates Acourwft 8:27 (b)(3) ant 8:28 odd V.P. 8:52 Datest Acoweraptant Sunuru + (b)(3) 9:10 VPont; sununu ont 9:12 Sumence in 9:13 Sunumer ant UNP 05/24/90 3:00 pm 9:15 summer to oval. - 9:16 Potus 1 Summer to Roosevelt Pu 9:21 Potus to oval 9:33 add General 9:40 10:03add Missis children group. etal 10:08 allant 10:09 allont SCHEDULE OF THE PRESIDENT Saturday, May 26, 1990 B Kennebunkport Sunday, May 27, 1990 B Kennebunkport 7nday 10:25 add Brian yablonsbir. + family i add Date + Card NO: 28 Poter, Card, rate to 5. lawn. 10:3 dgt WAF erto AAFB 10:41 am AAFB. UNP 05/24/90 5:00 pm SCHEDULE OF THE PRESIDENT Monday, May 28, 1990 Memorial Day Observed B Kennebunkport 5:00 pm B Arrive White House South Lawn UNP 05/24/90 5:00 pm 02 KENNEBUNKPORT, MAINE May 25 - 28, 1990 Friday, May 25, 1990 10:30 am Boards Marine One and dep. White House en route Andrews Air Force Base 10:40 am Arr. Andrews Air Force Base and proceeds to board Air Force One 10:45 am Dep. Andrews Air Force Base en route Pease Air Force Base 12:00 pm Arr. Pease Air Force Base and proceeds to board Marine One 12:05 pm Boards Marine One and dep. Pease Air Force Base en route Walker's Point Landing Zone, Kennebunkport, Maine 12:30 pm Arr. Walker's Point Landing Zone and proceeds to Residence for RON Saturday, May 26, 1990 No Scheduled Events RON Kennebunkport, Maine Sunday, May 27, 1990 No Scheduled Events RON Kennebunkport, Maine Bush Presidential Library Photocopy Monday, May 28, 1990 2:55 pm Board Marine One and dep. Walker's Point Landing Zone en route Pease Air Force Base 3:20 pm Arr Pease Air Force Base and proceed to board Air Force One 3:25 pm Dep. Pease Air Force Base en route Andrews Air Force Base 4:45 pm Arr. Andrews Air Force Base and proceed to board Marine One 4:50 pm Board Marine One and dep. Andrews Air Force Base en route White House 5:00 pm Arr White House Bush Library Photocopy George Bush Handwriting Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 02. Schedule The Trip of the President and Mrs. Bush to Kennebunkport, 05/90 (b)(7)(c), (b)(7)(e), Maine, May 25-28, 1990 [redaction] (3 pp.) (b)(7)(f) Collection: Record Group: Bush Presidential Records Office: Office of the President Series: Daily Files Subseries: WHORM Cat.: File Location: Friday, May 25, 1990 Date Closed: 5/7/2010 OA/ID Number: 90548-007 FOIA/SYS Case #: 2009-0166-S Appeal Case #: Re-review Case #: Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. AND THE OF OF THE UNITED THE TRIP OF THE PRESIDENT AND MRS. BUSH TO KENNEBUNKPORT, MAINE May 25-28, 1990 Bush Presidential Library Photocopy THE WHITE HOUSE SCHEDULE OF THE PRESIDENT AND MRS. BUSH WASHINGTON FOR SCHEDULE OF THE PRESIDENT AND MRS. BUSH KENNEBUNKPORT, MAINE FOR MAY 25 - 28, 1990 KENNEBUNKPORT, MAINE MAY 25-28. 1990 GUEST AND STAFF INSTRUCTIONS: EVENTS: 8:00 am Baggage Call. Please place all unlocked baggage outside No Events Scheduled Room 89 1/2 OEOB at this time. 9:40 am Vans depart West Basement en DRESS: route Andrews Air Force Base. Men Casual 9:40 am Guests and Staff with own Women Casual transportation and baggage, should arrive Distinguished Visitor's Lounge, Andrews Air CONTACT: Force Base for check-in. Office of Presidential Advance 10:00 am Guests and Staff with own John G. Keller, Jr. - 202/456-7565 transportation and without baggage should arrive Trip Coordinator Distinguished Visitor's Lucy Muckerman - 202/456-7565 Lounge, Andrews Air Force Base for check-in. Kennebunkport, Maine Signal - 202/395-1544 - 207/967-5200 10:30 am THE PRESIDENT boards Marine One and departs White ADVANCE: House en route Andrews Air Force Base. Dale Jenkins - LEAD Chris Molineaux - PRESS (b)(7)(c) (b)(7)(e).(b)(7)(f) MARINE ONE MANIFEST: Sean Byrne - MIL. AIDE Greg Dustin - WHCA THE PRESIDENT Doyle Gage - AFI C. Neblett Rob Creamer - HMX S. Neblett A. Card R. Gates WEATHER: T. McBride Doctor Partly Cloudy, Mid 50's Mil. Aide (b)(7)(e) :40 THE PRESIDENT arrives Andrews Air Force Base and Nighthawk III proceeds to board Air Force One. Marvin Bush - Marshall Bush Margaret Bush - Walker Bush A. Card 10:45 an THE PRESIDENT departs Andrews Air Force Base en R. Gates route Pease Air Force Base. J. Cicconi S. Rogich (Flying Time: 1 Hour 15 Minutes) M. Fitzwater (Interchange: No) D. Valdez (Time Change: None) L. Casey (Food Service: Beverages) Nighthawk IV (To Biddeford Airport) THE PRESIDENT arrives Pease Air Force Base and J. Herrick 12:00 pm proceeds to board Marine One. 15 Press 1 WHCA A/V 2 WHTV (b)(7)(e) 12:05 pm THE PRESIDENT boards Marine One and departs Pease WHCA c/o Air Force Base en route Walker's Point Landing D. Edwards Zone, Kennebunkport, Maine. D. Jenkins (Flying Time: 25 Minutes) HELICOPTER MANIFEST: Marine One THE PRESIDENT C. Neblett GUEST AND STAFF INSTRUCTIONS: S. Neblett S. Skinner Upon arrival at Walker's Point or H. Skinner Biddeford, Guests and Staff will be T. McBride driven to Nonantum Portside Resort. Doctor Lee Mil. Aide Upon arrival at Nonantum Portside Resort, Guests and Staff should (b)(7)(e) proceed to Front Desk for ROOM and Key Assignments. Nighthawk II WHCA T/O Dr. Bacon (b)(7)(e) 12:30 pm THE PRESIDENT arrives Walker's Point Landing Zone and proceeds to Residence for RON. Page Two FRIDAY: GOLF w/: SONNY HUTCHINS (of K PBR Page Three SECT. SKINNER KEN CAPE Bush Presidential Library Photocopy SATURDAY: GOLF w/ KEN RAYNOR turday, May 26, 1990 WILLARD" SPIKE HEMINWAY No Scheduled Events SECT. SKINNER HELICOPTER MANIFEST: RON Kennebunkport, Maine Marine One SANDAY GOLF: SAME THE PRESIDENT nday. May 27, 1990 Mrs. Bush C. Neblett No Scheduled Events MONDAY GOLF: SAME S. Neblett S. Skinner RON Kennebunkport, Maine H. Skinner Doctor Lee Mil. Aide nday. May 28, 1990 (SEE MOVEMENT LOGS) (b)(7)(e) Nighthawk II GUEST AND STAFF INSTRUCTIONS: WHCA T/O Dr. Bacon 12:00 pm Baggage Call. Please place all unlocked baggage outside (b)(7)(e) your door at this time. 2:25 pm Guests and Staff manifested on Nighthawk III Nighthawk IV should board vans Marvin Bush - Marshall Bush at Nonantum for transport to Biddeford Airport Landing Zone. Margaret Bush - Walker Bush T. McBride R. Gates 2:45 pm Guests and Staff manifested on 7 Cicconi D. MURRAY Marine one, Nighthawk II, and Nighthawk III, should board Regish ANNLEE M Fitowater S. HART vans at Nonantum for transport D. Valdez to Walker's Point Landing zone. L. Casey P. Swift 2:55 pm Nighthawk IV departs Biddeford Airport Landing Zone en route Pease Air Force Base. Nighthawk IV (From Biddeford Airport) J. Herrick 15 Press :55 pm THE PRESIDENT and Mrs. Bush board Marine One and 1 WHCA A/V 2 WHTV depart Walker's Point Landing Zone en route Pease Air Force Base. (h)(7)(e) 1 WHCA C/O D. Edwards D. Jenkins M. Lukens 3:20 pm THE PRESIDENT and Mrs. Bush arrive Pease Air Force Base and proceed to board Air Force One. 3:25 pm THE PRESIDENT and Mrs. Bush depart Pease Air Force Base en route Andrews Air Force Base. (Flying Time: 1 Hour 20 Minutes) (Interchange: No) (Time Change: None) (Food Service: Snacks and Beverages) 4:45 pm THE PRESIDENT and Mrs. Bush arrive Andrews Air Force Base and proceed to board Marine One. 4:50 pm THE PRESIDENT and Mrs. Bush board Marine One and depart Andrews Air Force Base en route White House. MARINE ONE MANIFEST: THE PRESIDENT Mrs. Bush c. Neblett S. Neblett M. BUSH Rr-Sates T. McBride Doctor Mil. Aide (b)(7)(e) Bush Presidential Library Photocopy (Flying Time: 10 Minutes) 5:00 pm THE PRESIDENT and Mrs. Bush arrive White House. Page Six THE WHITE HOUSE WASHINGTON TELEPHONE MEMORANDUM MAY 25th . 19. 90 PRESIDENT BUSH TIME NAME ACTION PLACED DISC OUT 8:51 AM 8:58 SENATOR JOHN H. CHAFEE PROVIDENCE, RI XNE XRM 401-276-7422 TLKD-OK 8:56 A.M. OUT AM INC PM OUT 9:44 AM MR. FREDERICO MORENO NOT ON THIS CRUISE CRUISE SHIP SHIP, WAS ON CRUISE INC 011-871-113-0471 XRM SHIP 2 WEEKS PRIOR. OUT AM TOLD MR. TIMOTHY (TIM) McBRIDE 9:50 A.M. INC PM OUT AM INC PM OUT AM INC PM OUT AM INC PM OUT AM INC PM OUT AM INC PM OUT AM INC PM OUT AM INC PM Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 03. Log White House Telephone Log [Signal Switchboard] [redaction 05/25/90 (b)(6) of personal information] (1 pp.) Collection: Record Group: Bush Presidential Records Office: Office of the President Series: Daily Files Subseries: WHORM Cat.: File Location: Friday, May 25, 1990 Date Closed: 5/7/2010 OA/ID Number: 90548-007 FOIA/SYS Case #: 2009-0166-S Appeal Case #: Re-review Case #: Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. THE WHITE HOUSE WASHINGTON TELEPHONE MEMORANDUM SIGNAL SWITCHBOARD May 25 90 TIME NAME ACTION PLACED DISC OUT 9:14 AM 9:40 Conference Call: Tlkd-ok President Violetta Chamorro 9:34 AM (b)(6) INC PM OUT AM Mr. David A. Pacelli White House Situation Room INC PM White House Signal 2-2264 OUT AM Ms. Stephanie Van Reigersberg Office, Washington, D.C. INC PM 647-2800 OUT 9:19 AM 10:13 Conference Call: Tlkd-ok President Guillermo Endara 10:09 AM via Autovon INC PM (b)(6) OUT AM Mr. Corneilius O'Leary White House Situation Room INC PM White House Signal 2-2264 OUT AM Ms. Stephanie Van Reigersberg Office, Washington, D.C. Bush Presidential Library Photocopy INC PM 647-2800 OUT 11:04 AM 11:07 Mr. Kenneth R. Raynor Tlkd-ok Office, Cape Arundel Golf Club 11:06 AM Kennebunkport, Maine via Secure Satellite INC PM 207-967-3494 OUT AM Mr. Kenneth R. Raynor Tlkd-ok Office, Cape Arundel Golf Club 1:43 PM Kennebunkport, Maine INC 1:41 PM 1:45 207-967-3494 OUT AM Mr. Timothy McBride Tlkd-ok Office, Walker's Point 2:21 PM Kennebunkport, Maine INC 2:21 PM 2:22 Kennebunkport Signal x351 OUT AM General John Hutton Tlkd with Office, Madigan Army Medical Center Mr. McBride Fort Lewis, Washington 5:21 PM INC 5:17 PM 206-967-6921 OUT AM Mr. Timothy McBride Tlkd-ok En route Walker's Point 9:17 PM Kennebunkport, Maine via Cellular Phone INC 9:15 PM 9:18 301-520-3942 PRESIDENTIAL MOVEMENTS Washington, D.C. LOCATION Kennebunkport, Maine DATE 25 May 1990 TIME MOVEMENTS 0657 Oval Office 0918 Roosevelt Room 0923 Oval Office 1027 South Grounds 1030 Depart South Grounds via Marine One 1040 Arrive Andrews Air Force Base, Maryland 1053 Depart Andrews Air Force Base via Air Force One 1153 Arrive Pease Air Force Base, New Hampshire 1207 Depart Pease Air Force Base via Marine One 1228 Arrive Walker's Point, Kennebunkport, Maine 1443 Depart Walker's Point via Motorcade (Low Key) 1456 Arrive Cape Arundel Golf Club (Low Key) 1758 Depart Cape Arundel Golf Club via Motorcade (Low Key) 1811 Arrive Walker's Point (Low Key) WHCA FORM 15, OCTOBER 15, 1980 News Summary OFFICE OF THE PRESS SECRETARY THE WHITE HOUSE WASHINGTON FRIDAY, MAY 25, 1990 -- 6:00 A.M. EDT EDITION TODAY'S HEADLINES INTERNATIONAL NEWS CONGRESS COMPLETES PANAMA-NICARAGUA AID MEASURE -- Congress, anxious to leave town for a Memorial Day recess, wrapped up work early Friday on a $4 billion spending bill including aid President Bush has urgently sought for new democratic governments in Panama and Nicaragua. (AP) CHINA TRADE DECISION PUTS BUSH, CONGRESS ON CRASH COURSE -- A congressiona alliance of Democrats and Republicans, angry about China's human rights record, has vowed to thwart President Bush's decision to continue normal trade ties with Beijing. (Los Angeles Times, Newsday, New York Daily News, UPI, Copley, Reuter Los Angeles Times, Washington Times, Washington Post) KHMER ROUGE ACCEPTS THAI CEASE-FIRE PLAN -- The Chinese-backed Khmer Rouge resistance group has agreed to a Thai cease-fire plan to be signed in Tokyo next month, Deputy Prime Minister Gen. Chavalit Yongchaiyudh said Friday. (AP) NATIONAL NEWS KEMP REJECTS INCREASING TAXES, SAYS IT WOULD HURT ECONOMY -- Secretary Kemp broke ranks with the Bush Administration Thursday, insisting that the federal budget deficit "is not ballooning" and that any attempt to reduce it by raising taxes will hurt, not help, the economy. (Washington Post) NETWORK NEWS (Thursday Evening) POLL -- President Bush INTERNATIONAL NEWS A-1 continues to get high marks from American voters. NATIONAL NEWS A-14 CHINA -- President Bush said he NETWORK NEWS B-1 will continue MFN status with the government of China. EDITORIALS C-1 CAMBODIA President Bush said he is reviewing U.S. policy towards Cambodia. This Summary is prepared Monday through Friday by the White House News Summary Staff. For complete stories or information, please call 456-2950. INTERNATIONAL NEWS CONGRESS COMPLETES PANAMA-NICARAGUA AID MEASURE Congress, anxious to leave town for a Memorial Day recess, wrapped up work early Friday on a $4 billion spending bill including aid President Bush has urgently sought for new democratic governments in Panama and Nicaragua. The House approved the measure on a 308 to 108 vote and the Senate followed suit with a voice vote shortly after midnight. That sent the bill to President Bush, who was expected to sign it into law quickly. (Jim Drinkard, AP) SHLAUDEMAN APPROVED AS AMBASSADOR TO NICARAGUA The Senate early Friday approved the nomination of veteran diplomat and Latin America expert Harry Shlaudeman as ambassador to the Nicaraguan government of President Chamorro. The Senate acted on the nomination minutes after completing congressional action on a bill containing $300 million in aid for Nicaragua. (Reuter) PRESIDENT URGES RENEWAL OF TRADE STATUS FOR CHINA President Bush recommended renewal of Most Favored Nation trading status for China Thursday but said the Soviet crackdown on Lithuania would make it "extraordinarily difficult" to justify giving the same trade status to the Soviet Union. One week before his summit here with President Gorbachev, Bush noted that the Supreme Soviet has not yet passed legislation that would codify its recent emigration reforms into law, a prerequisite of granting MFN status Bush suggested that passage of the Soviet emigration law is not the only reason for the delay. "I think there's a political climate in this country that would make it extraordinarily difficult to grant it," Bush said, "but that is not a bridge we're having to cross at this juncture." He added that once the Soviet law is passed, "Let's hope there's some progress on the Lithuanian question, because I think many think there's a direct linkage there. And I must say, it concerns me.' Meanwhile, seven conservative senators, led by Sen. Helms, sent a letter to Bush raising "profound concerns" about the results of Secretary Baker's negotiations on strategic arms last week Bush said he made the decision to grant the trade status to Beijing even though he considered China's human rights record "far from adequate. "I don't think this is a reward to Beijing," Bush told a White House news conference. (David Hoffman & Lena Sun, Washington Post, A1) White House News Summary Friday, May 25, 1990 -- A-2 Bush Extends Favorable Trade Status For China President Bush, saying economic moves against Beijing would hurt American business and the Chinese people, announced Thursday that he would renew most-favored-nation trading status for China despite its anti-democracy crackdown. The announcement came less than two weeks before the first anniversary of the June 4 massacre in Tiananmen Square "This was a difficult decision, weighing our impulse to lash out in outrage that we all feel against a sober assessment of our nation's long-term interests," Bush told a news conference. "I concluded that it is in our best interest, and in the interest of the Chinese people to continue China's trade status. "Not to do so would hurt the United States," he said. In Beijing, the official Xinhua news agency offered no official comment from the government but the news agency belittled the campaign in the U.S. to derail China's most-favored-nation status on human rights grounds. Democrats and some Republicans in Congress vowed to overturn his decision Sen. Mitchell called the President's decision "profoundly wrong," and promised, "We're going to do everything we can to prevent it from taking effect." (Lori Santos, UPI) China Trade Decision Puts Bush, Congress On Crash Course A congressional alliance of Democrats and Republicans, angry about China's human rights record, has vowed to thwart President Bush's decision to continue normal trade ties with Beijing. Lawmakers planned to introduce measures to reverse Bush's decision, despite his claims that it would advance the interests of both the Chinese and American peoples "Sought-after trade concessions should not be given to the butchers of Beijing," Sen. D'Amato declared But Rep. Rostenkowski said that while the behavior of the Chinese leaders made the decision difficult, he would go along with Bush. "I will support the President's decision on this difficult matter in the hopes that the people of China will see their lives improved through this action," he said. (Kenneth Barry, Reuter) China/MFN President Bush renewed China's most-favored-nation trade status Thursday, triggering outcries from Democrats and Republicans alike on Capitol Hill and setting the stage for a major confrontation with Congress over U.S. policy toward the repressive Beijing government "I don't think this is a reward to Beijing," Bush said at a White House news conference. "I think it is very important to keep these commercial contacts It is the basis of everyday trade. Speaker Foley predicted Congress would adopt a resolution disapproving of Bush's action Asked about prospects of overriding a veto of the resolution, Foley pointed to last year's House vote overwhelmingly rejecting Bush's veto of legislation to protect Chinese students in the U.S. from being forced to return home Sen. D'Amato said he could not support Bush now on the trade issue and predicted other Republicans would join him in overriding a possible Bush veto. (Gaylord Shaw, Newsday) - White House News Summary Friday, May 25, 1990 -- A-3 Bush Announces Decision To Grant China One-Year Extension of MFN Status President Bush, expressing irritation with congressional critics of his China policy, announced Thursday that he would grant Beijing a one-year extension of its preferential trading status. Making the long-expected announcement at a White House news conference, the President said the decision to renew China's MFN trade designation should not be interpreted as a sign that the Administration is unconcerned about the bloody military repression of the pro-democracy movement in Tiananmen Square nearly a year ago. "This was a difficult decision, weighing our impulse to lash out in outrage that we all feel against a sober assessment of our nation's long-term interest," said Bush Sens. Dixon and D'Amato reacted to Bush's decision by announcing that they would introduce a Senate resolution of disapproval to block MFN renewal for China "The renewal of most-favored-nation status would be interpreted as support for a brutal and murderous regime,' " said Dixon. "This is simply inconsistent with the American spirit." Speaker Foley criticized Bush for failing to link MFN renewal to specific improvements in China's human rights policies and warned that Bush faces a possible defeat in Congress on the issue. (Finlay Lewis, Copley) Bush To Give Trade Status President Bush Thursday provoked congressional outrage by announcing he will renew special trade benefits for China despite its anti-democracy crackdown. But Bush said he will deny the same benefits to the Soviet Union Sen. D'Amato called Bush's move a "short-sighted accommodation with a blood-stained and discredited regime, and said he will co- sponsor a resolution to prevent renewal. [And] Sen. Moynihan said it was a "profound mistake that will send a hideously wrong message to the world.' At a news conference, Bush "vented a little spleen" over charges by foes that he was doing a "favor" for China. He said refusing to extend the most-favored-nation status would have hurt the Chinese people as well as American consumers and businesses. (Maureen Santini, New York Daily News, 11) China Trade Status Renewed By Bush President Bush announced Thursday that he is extending China's most-favored-nation trade benefits without conditions. He said that acting otherwise would hurt American business, workers and consumers, and he saluted China's "modest steps" to ease human rights restrictions. While the President's decision had been anticipated, it set off a round of criticism from Republicans and Democrats. A resolution that would counter the President's move and take away the special status immediately was introduced in the Senate. Sen. Mitchell said that he would "aggressively and vigorously" try to block Bush's action. "I think he faces some very severe problems here," added Speaker Foley. As of Thursday, Foley said, Bush lacked the votes needed to sustain a veto of the resolution in the House. (James Gerstenzang, Los Angeles Times, A1) - White House News Summary Friday, May 25, 1990 -- A-4 Democrats Hammer Bush On China Democratic congressional leaders bitterly denounced President Bush Thursday for renewing China's lucrative trade preference without strings despite China's continuing human rights violations. "It is inconsistent with American values, it is contrary to American interests, and it is profoundly wrong," Sen. Mitchell said in perhaps his harshest criticism ever of the President "Having made concession after concession, the President wants to make more concessions," Mitchell said as he called Bush's entire China policy "a complete failure" and vowed to do what he could to derail the extension. (Frank Murray & Chris Harvey, Washington Times, A1) BEIJING LINKED ENTIRE RANGE OF TIES WITH BUSH DECISION ON TRADE STATUS BEIJING -- China has made clear that President Bush's decision on trade relations would have bearing on political and cultural ties. Chinese officials did not immediately comment on Bush's announcement Thursday extending China's MFN status for one year But the official Xinhua news agency said, "A small number of Americans, under the pretext of so-called human rights, opposed the renewal of China's MFN status. Their arguments have been strongly rejected by the majority of American people, who cherish the long- term interests of relations between the two countries. In recent days, China indicated that raising tariffs on its goods would lead not just to higher duties on U.S. products and a sharp drop in trade, but diminished political and cultural contacts as well. (Kathy Wilhelm, AP) CHINA/FOREIGN RELATIONS BEIJING -- The Chinese government has recently been sending subtle messages of regret for its violent suppression of last year's pro-democracy demonstrations. The messages have been intended, at least in part, to quiet critics in the U.S. Congress who opposed Thursday's renewal of China's MFN trade status in the wake of June's massacre, diplomats here say. In a meeting this week with Helmut Schmidt, the former West German chancellor, Chinese leader Deng Xiaoping admitted "mistakes were made, and that the leadership deserves much of the blame for the pro-democracy movement that ended with the military opening fire on civilians last year. Also, during the past several weeks, Communist Party chief Jiang Zemin has appeared on U.S. and Japanese television, saying that demonstrations are better cleared with non-lethal force, that the purge of student leaders was over and that no criminal charges would be filed against his predecessor, Zhao Ziyang, who was ousted "These aren't apologies nor concessions," a European diplomat said. "They aren't saying that Zhao was right or that the students were right. But they are softening a bit, giving their friends something to hang their hat on." (Jim Mulvaney, Newsday) White House News Summary Friday, May 25, 1990 -- A-5 U.S.-CHINA FRICTION HURTS JAPAN, LDP OFFICIAL FEARS A key leader of Japan's ruling LDP has warned that Japan is seriously concerned it will suffer from continued confrontation between the U.S. and China over the Tiananmen Square crackdown last June. "A continuing antagonism between China and the United States will naturally bear heavy consequences for Japan," said Michio Watanabe after a meeting Wednesday with President Bush "It would be better for all concerned if the United States does not clamp down further on the Chinese government," Watanabe added. (Gus Constantine, Washington Times, A11) BUSH PRAISED FOR RENEWING CHINA'S FAVORED TRADE STATUS TORONTO -- The governor of Hong Kong said Thursday the British crown colony would have lost $10 billion in trade if President Bush had not renewed China's most-favorable-nation trading status. Sir David Wilson said Bush's move will bolster Hong Kong's bright economic future even as it prepares for Chinese rule in 1997. "It certainly bodes well for Hong Kong and for south China, which is the most developed and developing section of China," Wilson told 1,000 businessmen at a luncheon meeting. "I was pleased that he did that. It is something which has a very marked effect on us in Hong Kong." (B.J. Del Conte, UPI) CHINA TRADE DECISION BOON FOR TOY, CLOTHES IMPORTERS NEW YORK -- President Bush's one-year extension of favorable trading status to China assures no supply disruption or price jumps in imports ranging from cashmere sweaters to teddy bears to portable hair driers, business people said Thursday. Moreover, the decision means China won't retaliate by turning elsewhere for some of the most important U.S. exports, including grain, fertilizer, aircraft, cotton and machinery. "We felt that in the interest of keeping trade lines open and allowing U.S. farm products to flow into China, it was critical that this be extended," said Jack King, spokesman for the American Farm Bureau Federation. (Rick Gladstone, Washington Post, F3) BAKER CONCESSION IGNORES STAND ON SOVIET BOMBER Secretary Baker reversed a long-standing U.S. arms control position in recent negotiations with the Soviet Union by proposing that nuclear-armed Backfire bombers not be counted as strategic weapons under the pending START treaty, according to Bush Administration officials. It had been previously reported only that Baker was unable to convince the Soviets that the bomber be limited under the treaty. In exchange for Baker's proposal, which reverses a U.S. negotiating demand dating back to 1992, Moscow would declare that the Backfire is not capable of flying intercontinental missions. But as recently as February, the Defense Intelligence Agency in a report on Soviet forces said the Backfire has "an intercontinental strike capacity when equipped with a refueling probe." (Bill Gertz, Washington Times, A3) - White House News Summary Friday, May 25, 1990 -- A-6 BUSH LINKS BALTIC STATES, TRADE DEAL FOR MOSCOW President Bush said Thursday the Soviet Union's handling of independence movements in the Baltic states could cost Mikhail Gorbachev U.S. trade benefits he wants to help resuscitate the Soviet economy. Linking the situation in Lithuania and "economic aspects of this summit" for the first time, Bush told a news conference he was not "encouraged about where it stands right now." Asked about the chances the U.S. would grant most-favored- nation trading status to the Soviet Union, a move once touted as a major feature of next week's superpower summit, Bush said, "I think there's a political climate in this country that would make it extraordinarily difficult to grant it." "Let's hope there's some progress on the Lithuanian question, because I think many feel there's a direct linkage there," Bush said. "And I must say, it concerns me." (Lori Santos, UPI) Bush Eager To 'Talk Frankly' At Summit President Bush is spending the Memorial Day weekend in Kennebunkport, Maine, boning up on the issues for his summit with President Gorbachev next week. "There's enormous problems that just need to be talked about," Bush told a White House news conference Thursday. But he hopes for "significant progress" on such issues as cuts in long-range nuclear weapons and signing a ban on chemical weapons. Gorbachev is "a man with whom we can talk frankly," Bush told the BBC Thursday. (Johanna Neuman & Mimi Hall, USA Today, 1A) EDITOR'S NOTE: "Bush withholding Normal Trade Ties From The Soviets," by R.W. Apple, appears in The New York Times, page A1. GORBACHEV SAID TO OFFER TO MEET LITHUANIAN GOAL MOSCOW -- Mikhail Gorbachev, in an unexpected and major attempt at reconciliation with Lithuania, assured its representatives Thursday that their homeland could become independent in two or three years with his blessing if it bows to his demands now, Lithuanian sources said. In a hastily arranged private meeting in the Kremlin, the Soviet president offered to lift punishing sanctions against the breakaway Baltic republic and open talks with its government if it suspends the unilateral declaration of independence adopted in March. The Lithuanian news agency ELTA, in a dispatch from special correspondent Balys Bucelis, reported: "Gorbachev said in principle [that] he had nothing against Lithuania leaving the U.S.S.R." A participant in the talks said they marked the start of a "narrowing of differences" in the domestic political crisis Another journalist in Vilnius said he was informed by an official present at the meeting that Gorbachev spoke of Lithuania achieving independence in as little as two years. (John-Thor Dahlburg, Los Angeles Times, A1) - White House News Summary Friday, May 25, 1990 -- A-7 LITHUANIANS ENCOURAGED BY TALK WITH GORBACHEV MOSCOW -- President Gorbachev told a delegation of Lithuanian legislators Thursday that the breakaway Baltic republic could win independence from the Soviet Union in two or three years if it agrees to suspend its March 11 declaration of immediate secession. "I came out of that meeting feeling we are getting closer to compromise," said Lithuanian lawmaker Nikolai Medvedev after the hour-long session at the Kremlin. "It was a friendly meeting, and I left there feeling that we will all work this out as free people." Medvedev said the four-member Lithuanian delegation handed Gorbachev a copy of the Lithuanian parliament's latest resolution offering to freeze some legislation passed after the declaration of independence if Moscow agrees to negotiations on an orderly transition to full sovereignty for the republic. Gorbachev told the Lithuanians that he was aware of the resolution, but he insisted on a freeze of the independence declaration itself before any talks could begin. (David Remnick, Washington Post, A1) BALTIC STATES HOPE SUMMIT WILL REAFFIRM U.S. SUPPORT VILNIUS -- The fine print on official U.S. maps denies this is part of the Soviet Union, and when President Bush meets President Gorbachev next week, many in the Baltic republics want him not to forget it "We pin our hopes on the summit, in the sense that it will spark real negotiations between Moscow and the Baltic republics," said Sarmite Elerte, chief of the information department of Latvia's Parliament. (John-Thor Dahlburg, Los Angeles Times, A15) WITH MOSCOW, U.S. IS TAKING A DIFFERNT LINE President Bush made it clear Thursday that when it comes to linking human rights to "most-favored-nation" trade benefits, his Administration has two vastly different approaches: one for China and another for the Soviet Union This inconsistency is echoed throughout the top levels of the Bush Administration. Last week, Secretary Baker suggested that the Soviet Union would be disqualified from obtaining most-favored- nation benefits if it uses "force or coercion" in Lithuania, Latvia or Estonia. Of course, force and coercion are exactly what China used against pro-democracy demonstrators a year ago. (News analysis, Jim Mann, Los Angeles Times, A1) SOVIETS SEEK AIR-TRAVEL PACT IN TIME FOR SUMMIT Soviet officials, working to salvage a U.S.-Soviet aviation agreement in time for next week's Bush-Gorbachev summit, will come to Washington this weekened in an effort to negotiate the last sticking point, U.S. sources said Thursday. The problem involves the percentage of U.S. airline tickets to be sold in rubles in the Soviet Union "We have an agreement that is 98 percent done," said a source involved in the negotiations. But the unresolved economic problem is as important as "the battery in a transistor radio. " There will be no agreement without it, he said. (Don Phillips, Washington Post, A23) - White House News Summary Friday, May 25, 1990 -- A-8 YANKING OF EMIGRATION BILL STARTLES SOVIET LEGISLATORS MOSCOW -- Soviet deputies expressed surprise Thursday at the unexplained dropping, apparently by Kremlin leaders, of a liberal emigration bill from the agenda of the Supreme Soviet -- despite earlier assurances that it would be ready in time for next week's superpower summit Nikolai Fyodorov, the chairman of a subcommittee that reviews new legislation, said that the decision to take the emigration law off the agenda was taken behind closed doors by Kremlin leaders. He described it as "undemocratic" and "unconstitutional." Western diplomats here speculated that the abrupt withdrawal of the bill could be linked to superpower maneuvering over Lithuania's bid for independence. They said that Kremlin leaders may have feared that Washington would hold the new trade agreement hostage to an ending of the Soviet Union's economic embargo of Lithuania. (Michael Dobbs, Washington Post, A36) GROUP ASKS FOR AN END TO NUCLEAR PRODUCTION A group of distinguished American diplomats and scientists asked President Bush and President Gorbachev Thursday to use the forthcoming summit as an opportunity to halt the production of nuclear materials used in weapons In a letter to the two presidents, signed by seven Nobel laureates, two former Cabinet secretaries and two former directors of the CIA, the 54 signers said, "The window of opportunity is fast closing" because the U.S is now preparing to restart the nuclear reactors "Surely this unrelenting race to produce yet more ingredients for nuclear weapons deserves serious re-examination in light of the progress being made to end the nuclear arms race," the letter stated. (Jim Anderson, UPI) BONN, MOSCOW IN TUG OF WAR OVER PRICE OF GERMAN UNIFICATION BONN Despite the confusing signals out of Moscow, Bonn's leaders are supremely confident that the Soviets will eventually approve unification of the two Germanys and its central sticking point, German membership in NATO. The backbone of the German confidence is an equally supreme willingness to pay for the Soviet "yes." "What we are seeing now are the birth pains of a new relationship between Germany and the Soviet Union," a top West German official said. "They know we are not willing to bring about unification without Soviet consent. And we are prepared to accept obligations in exchange for that consent." Put more plainly, "The Russians are fishing for a price the West will pay for NATO membership," said Josef Joffe, foreign editor of the Sueddeutsche Zeitung, a Munich daily. (Marc Fisher, Washiungton Post, A34) - White House News Summary Friday, May 25, 1990 -- A-9 SOVIET DEPUTIES SEEK NO-CONFIDENCE VOTE OVER ECONOMIC PLAN MOSCOW -- Radical legislators called Thursday for a vote of no confidence in the government, declaring that the Kremlin's latest economic reform package would fail to extricate the Soviet Union from a deepening economic crisis. Prime Minister Ryzhkov, in a two-hour televised address to the Soviet legislature, said that citizens would receive full compensation for up to 70 percent of the huge price rises forecast under the government's plans. But he said there would be no compensation for price rises on a number of luxury items, including jewelry, liquor, tobacco and food delicacies. The no-confidence motion was announced by Gennadi Filshin, a representative of the Inter-Regional Group, a fledgling political opposition. He described the government plan as a "camouflaged attempt to double state retail prices while making no progress toward a market." (Michael Dobbs, Washington Post, A31) EDITOR'S NOTE: "Soviet Economic Reforms Called Too LIttle, Too Late," by Warren Strobel, appears in The Washington Times, page A8. KHMER ROUGE ACCEPTS THAI CEASE-FIRE PLAN BANGKOK -- The Chinese-backed Khmer Rouge resistance group has agreed to a Thai cease-fire plan to be signed in Tokyo next month, Deputy Prime Minister Gen. Chavalit Yongchaiyudh said Friday. "Everything that Sihanouk has agreed to, the Khmer Rouge has also agreed to," Chavalit said. Diplomatic sources said Chavalit this month signed separate but similar agreements with each of the factions for a cease-fire, and each group has agreed not to use the cease-fire to expand its territorial control. (Vichai Phuphatana, UPI) U.S. POLICY ON CAMBODIA REAFFIRMED Khmer Rouge Role Disturbs President After a high-level review, President Bush has reaffirmed U.S. policy toward Cambodia as the "right track" despite criticism that it indirectly aids the Khmer Rouge, Administration officials said Thursday. An official said Bush reaffirmed the policy at a May 10 National Security Council meeting that also touched on other regional conflicts. "Everyone concurred that we are on the right course" during the meeting attended by Secretary Baker and other senior officials in addition to Bush, the official said. Bush, in a news conference Thursday, called U.S. policy in Cambodia "very complicated" and said that "to the degree it has any effect to help them [the Khmer Rouge], yes, I am uncomfortable about it." He added, however, that a diplomatic compromise has track." been worked out and "at this juncture, I think we're on the right Bush said, "We are reviewing the whole policy now. However, a White House official said that, to his knowledge, no current review is taking place. He said Bush apparently was referring to the review that culminated in the May 10 NSC meeting. (Don Oberdorfer, Washington Post, A28) - White House News Summary Friday, May 25, 1990 -- A-10 CONGRESS PASSES BILL WITH ISRAELI HOUSING GUARANTEES The Senate early Friday completed congressional action on a bill containing $400 million in housing guarantees for Israel to help it cope with a flood of Soviet immigrants. In line with U.S. policy, the guarantees are not to be used to support projects in the West Bank, Gaza and east Jerusalem. (Reuter) ISRAEL REJECTS PROPOSALS TO POST U.N. OBSERVERS IN TERRITORIES JERUSALEM -- Israel said Thursday that it would defy any move by the U.N. Security Council to post observers in the occupied West Bank and Gaza Strip after an outbreak of violence set off by a mass slaying of Palestinian workers by an Israeli gunman. A U.S. pledge this week to consider such an observer mission after Sunday's shooting, in which seven Palestinian workers from the Gaza Strip were killed, has signaled a worsening of U.S.- Israeli relations, Israeli government officials said. Appearing on Israeli television Thursday night, acting Prime Minister Shamir said, "I don't assume the Security Council would decide" on such a step "since it would clearly know this decision would not be implemented, as many other U.N. decisions against Israel." At a press conference earlier, Foreign Minister Arens said Israel was counting on U.S. support at a special Security Council meeting Friday in Geneva that was called to discuss the recent violence in the occupied territories Arens conceded that coordination between the U.S. and Israel has "not been as close as it had been in the past." (Jackson Diehl, Washington Post, A31) ARAFAT TRIES TO EXPLOIT KILLINGS The PLO is attempting to use Sunday's massacre of seven Palestinians by a deranged Israeli and subsequent calls for a U.N. peacekeeping force in the occupied territories to exploit heightened U.S.-Israeli tensions. PLO Chairman Arafat is expected to call Friday for a U.N. force in the Israeli-occupied West Bank and Gaza Strip when he addresses a meeting of the U.N. Security Council in Geneva. But senior PLO officials said Thursday that Arafat is willing to settle for some form of U.N. visit to investigate ways of protecting Palestinian lives, even though the U.S. has expressed a willingness to consider a presence by the U.N. "The important fact is that the Americans are willing to discuss protection of the Palestinians," said a senior PLO official, who asked that his name not be used. "The political aspect of this is that it implies criticism of Israel, legally it emphasizes that the territories are occupied. The important thing is to get the Americans on board." (James Dorsey, Washington Times, A1) - White House News Summary Friday, May 25, 1990 -- A-11 LAWMAKERS BLAST REPORT BY STATE DEPT. ON PLO House members Thursday criticized a State Department report that the PLO has apparently complied so far with its 1988 pledge to give up terrorism, calling it a "whitewash and a pack of lies." "This report is a sham and a fraud and this Administration ought to be ashamed of itself," said Rep. Lawrence Smith at a hearing of the House Foreign Affairs subcommittee on Europe and the Middle East. "This is just a pack of lies." Reps. Lantos and Gilman joined Smith in charging that Israel was the victim of a "double standard" and of a "predictable orgy of Israel-bashing" in the wake of the killing of seven Palestinian laborers Sunday President Bush called Thursday at his news conference for Israeli restraint and said he was "troubled about the loss of human life" in the territories. He added that the solution to the region's problems is to get peace talks moving. "I will do everything I can to get the talks for peace going," he said. (Nora Boustany, Washington Post, A32) CLERGY SAID TO MISUSE INDIA AID NEW DELHI -- An audit by a U.S. accounting firm has turned up evidence that some bishops, priests and nuns within India's Roman Catholic Church could have "misused" millions of dollars worth of U.S. government food donated to feed malnourished mothers and children. Indian Catholic officials have used short-weighing measuring devices for distributing food, created false -lists of food recipients, improperly used donations to support commercial businesses, and deliberately concocted inaccurate records to hide abuses, according to the report by Price Waterhouse, the accounting firm asked to audit the food program by the U.S. Agency for International Development U.S. officials, who asked not to be identified, said that a definitive judgment about whether Indian Catholic officials have deliberately stolen large amounts of U.S. food was beyond the scope of the Price Waterhouse audit, which ommitted the names of any individuals involved. But they said the evidence uncovered by the audit suggested to them that significant theft and corruption had occurred. (Steve Coll, Washington Post, A1) U.S. LAUNCHES A NEW DRIVE AGAINST ILLICIT COCAINE LABS IN BOLIVIA In an escalation of the drug war in South America, U.S. agents have launched a new coordinated attack against a network of cocaine laboratories in the Bolivian jungle, provoking threats of retaliation against the American-led teams, U.S. officials said Thursday. The offensive, including night-time raids with inflatable boats in alligator-infested rivers, targets new processing plants believed responsible for one-fourth of Bolivia's burgeoning cocaine production "We're doing a lot of first-time things," said David Westrate, director of operations for the DEA The teams so far have met with no resistance in their raids on seven airstrips and three laboratories, Administration officials said. (Douglas Jehl, Los Angeles Times, A6) - White House News Summary Friday, May 25, 1990 -- A-12 CAR BOMB, ATTACK IN MEDELLIN LEAVE 5 DEAD AND 21 INJURED BOGOTA -- Terrorist attacks three days before a presidential election left at least five people dead, including two policemen, and 21 injured Thursday in Medellin, according to authorities The two policemen and two others were killed and 21 injured when a car bomb exploded at 5:40 p.m. near the Intercontinental Hotel on the southern edge of the city. (Douglas Farah, Washington Post, A32) MARION BARRY TRIAL TEST OF BUSH DRUG POLICY BOGOTA -- In the eyes of many Colombians, President Bush will be a co-defendant with Marion Barry when the Washington, D.C., mayor goes on trial next month on cocaine charges In the view of Colombians, a failure to convict Barry would raise more doubts about the sincerity of the U.S. anti-drug effort The case "creates a bad feeling in Colombia. Colombia wants to look to the United States to fight against drug trafficking," said Liberal Party candidate Cesar Gaviria, the expected winner of Sunday's presidential election. "Not one case of a kingpin being tried is known. It is difficult to understand what is happening with the mayor of Washington." (Tom Harvey, UPI) U.S. GOVERNMENT AGREEMENT TO PAY FOR NORIEGA'S DEFENSE COSTS BLOCKED MIAMI -- A deal by the federal government to pay the legal bills of deposed Panamanian leader Manuel Noriega collapsed Thursday in court when a federal judge advised both sides that the government is limited, by law, to paying a maximum of $75 an hour in attorneys' fees Under terms of Monday's agreement, the four defense lawyers understood that they could collect between $200 and $300 an hour in legal fees. Frank Rubino, lead defense lawyer, said the smaller fee was "ludicrous." (Laura Parker, Washington Post, A23) MEXICO TO EXPAND MARKETS WITHOUT EXCLUDING LATIN AMERICA BUENOS AIRES -- Mexican Foreign Minister Fernando Solanas said Thursday that Mexico does not plan to join a trade bloc with the U.S. and Canada. "What exists now is a possibility of amplifying some trade areas. It is not defined as an economic integration,' or trade bloc, Solanas said in a news conference in Buenos Aires after meeting with President Menem "The intention of Mexico is to broaden markets without excluding others," he said. (UPI) - White House News Summary Friday, May 25, 1990 -- A-13 GNP DISPUTED AS DEVELOPMENT INDEX U.N. Program Charges Distortion of Economic Growth Strategies Western governments and international aid organizations have done a crude job of measuring world economic and social development for decades, thus contributing to ineffective development strategies, according to a U.N. report released Thursday The report uses a "human development index" that measures peoples' fundamental quality of life according to their life expectancy, literacy and ability to buy basic goods The study, called the Human Development Report 1990 found that west and central Africa form the world's most desperate belt of want, with eight of the 10 least developed countries. According to the new measurements, the U.S. is the least developed of the major Western industrial nations. (James Rupert, Washington Post, A16) EDITOR'S NOTE: "Gorbachev Making Commitments," by Ann Devroy, appears in The Washington Post, page A36. ### NATIONAL NEWS KEMP REJECTS INCREASING TAXES, SAYS IT WOULD HURT ECONOMY Secretary Kemp broke ranks with the Bush Administration Thursday, insisting that the federal budget deficit "is not ballooning" and that any attempt to reduce it by raising taxes will hurt, not help, the economy. Kemp said he supports the current budget summit as a way to "reduce spending." But he lamented that the negotiations between the White House and congressional leaders have turned into a "tax summit. "If no one else [in the Administration] will make the public case, I will. The transcendent issue is economic growth. Cutting taxes, not increasing taxes, is the route to economic growth," Kemp said. Kemp's comments came as the budget group held its fourth meeting on Capitol Hill The session began as President Bush praised the group's progress, but he suggested it is Congress, not he, that caused the deficit problem. "I will point out that people understand that Congress bears a greater responsibility for this," Bush said, adding, "But I'm not trying to assign blame Those comments irked some Democrats who do not want to make any proposals in the bargaining until Bush does. (Ann Devroy, Washington Post, A1) DEMOCRATS CHARGE THAT BUSH COMMENTS SOUR BUDGET TALKS Democratic participants in the budget talks between the White House and Congress charged Thursday that President Bush "soured" the atmosphere by urging Congress to take a greater leadership role Before negotiators met, Bush told a White House news conference he believes Congress must share responsibility for proposing solutions to the deficit problem and disputed Democratic charges of lax leadership on the issue "I will point out that the Congress bears a greater responsibility for this," Bush said. "But I'm not trying to assign blame. That's why I'm doing it right now. That's why I'm saying we're going to sit and talk." Democrats were displeased with Bush's remarks but said they were not discussed during the negotiations. "It soured, I think, some of the attitude of the negotiators when we're making a good faith effort to try to grapple with this problem, to try to come up with solutions," said Sen. Sasser Rep. Panetta said Bush's comments make him "perhaps one of the first presidents in recent history to say that the Congress has greater power than the presidency in determining the course of the economy, and I don't think anybody believes that.' Rep. Gephardt said "the President is wrong if he believes the budget is more the Congress's responsibility than his. It's a shared responsibility." (Bud Newman, UPI) -erom- White House News Summary Friday, May 25, 1990 -- A-15 Bush Upsets Democrats By Blaming Congress For Deficit President Bush said Thursday that the Democratic-controlled Congress bears a greater responsiblity than he does for reducing the soaring federal deficit, touching off angry denials from Democrats and renewed demands that Bush show greater leadership. Bush reiterated that he will not address the American people on the deficit until he can endorse a negotiated bipartisan solution "If I outlined the problem now, I'd rely on some of the fact that the Congress appropriates all the money and raises all the revenues," the President said. "That's their obligation People understand that the Congress bears a greater responsibility for this. Democrats instantly disagreed. Bush "should recommend what he believes is needed now," Speaker Foley said minutes after the President spoke. (William Eaton, Los Angeles Times, A38) Democrats Irate Over Bush Silence President Bush ignited Democratic tempers in Congress Thursday when he refused once again to address the public on the severity of the deficit problem or to offer proposals to solve it. Speaking at an impromptu White House news conference, Bush said Congress bears the primary responsibility for dealing with fiscal matters. He said he would not offer more detailed descriptions of the causes for the swelling deficit or make public any recommendations for a solution until after Administration and congressional negotiators reached a budget agreement. Democrats wasted little time attacking the President's statement. "Sitting at Ronald Reagan's right hand, the President learned how to duck, not how to lead,' said Rep. Obey, whose views were widely echoed by Democrats in the House and Senate. "The American people have learned more about the Soviet economy over the past two days than they have about their own." (Susan Rasky, New York Times, A13) DEMOCRATS' DEFICIT CUTS DIG DEEPER THAN GOP'S Capitol Hill Democrats meeting in the budget summit with the White House want to cut the deficit by $600 billion over five years, while a key Republican said $425 or $450 billion might be more realistic. The competing figures were given Thursday after summit negotiators emerged from a three-hour closed-door meeting. (Chris Harvey, Washington Times, A4) PENTAGON TO AWAIT MISSILE SAFETY STUDY The Department of Defense Thursday said it would not remove short-range, nuclear-tipped missiles from strategic aircraft on war "alert" before the Air Force completes a special study on the possibility that they might explode in an aircraft fire DOD spokesman Pete Williams told reporters at the Pentagon that the SRAM-A "meets all our current safety standards" and "it would be unwise and premature to predict the outcome of that study and to make any decisions now before it's done" later this summer. (R. Jeffrey Smith, Washington Post, A23) - White House News Summary Friday, May 25, 1990 -- A-16 USS IOWA PROBE REVIVED; TEST BACKS ACCIDENT THEORY The Navy Thursday suspended all live firings of the massive 16-inch guns on its four World War II-vintage battleships after new testing showed that an accidental explosion could have caused the turret blast that killed 47 sailors aboard the USS Iowa in April 1989. The finding caught top Navy officials by surprise and prompted Navy Secretary Garrett to reopen the official investigation into the disaster The testing Thursday was conducted after Sen. Nunn made a strongly worded appeal May 14 to Admiral Carlisle A.H. Trost, chief of naval operations, citing results of laboratory tests by Sandia National Laboratories in Albuquerque indicating that a "high-speed overram" could lead to accidental ignition of the powder charges used in the 16-inch guns The Navy confirmed Sandia's theory yesterday at the Naval Surface Weapons Center in Dahlgren, Va. (Patrick Tyler, Washington Post, A1) GOP DUSTS OFF SUPPLY-SIDE ECONOMICS Supply-side economics -- the Reagan-era notion that government tax revenue will go up when tax rates go down -- is trying to stage a comeback, even in this era of $150 billion federal deficits. Thursday, House Republicans released a study that contended that a Democratic proposal to raise marginal income tax rates to 33 percent for the 600,000 richest Americans would slow economic growth, mean 377,000 fewer jobs and lower the take-home pay of the average taxpayer. "Those who hope to redistribute income to the poor by increasing tax progressivity may actually harm intended beneficiaries. In this case, average taxpayers end up worse off by over $500,' said a study by the Institute for Policy Innovation, a Lewisville, Tex. foundation chaired by Rep. Armey. (Steven Mufson, Washington Post, F1) REVISED FIGURES SHOW ECONOMY IS STILL SLUGGISH Deflating a recent impression that the economy was chugging along quite nicely, the Commerce Department reported Thursday that the sluggish economic growth that had set in last September had continued through the first quarter. In its second estimate of the quarter's economic growth, the Commerce Department said the GNP had expanded at an annual rate of only 1.3 percent from January through March and not, as estimated last month, at a healthy 2.1 percent. (Lousi Uchitelle, New York Times, A1) SEC LINKS SLIDE OF STOCKS ON OCT. 13, FUTURES DEALS The mini-stock market crash of Friday, Oct. 13, 1989, which drove the Dow Jones industrial average down 191 points in 90 minutes, was fueled by the combined selling of program traders in New York and futures speculators in Chicago, the SEC said Thursday. The SEC, which has criticized Chicago's low margin levels before, warned that the turbulence seen in October could return. (Stan Hinden, Washington Post, F1) - White House News Summary Friday, May 25, 1990 -- A-17 SULLIVAN SEEKING BAN ON CIGARETTE MACHINES $1.23 Billion In Illegal Sales To Youths Cited Citing the "moral outrage" of the estimated $1.23 billion worth of cigarettes illegally sold to children every year, Secretary Sullivan Thursday called for a ban on cigarette vending machines, the licensing of tobacco retailers, and tougher enforcement of laws prohibiting tobacco purchase by minors. "We have found it convenient to look the other way as cigarettes are openly sold to our nation's youth, Sullivan said, adding that as long as children begin smoking and "become addicted before they can make a mature judgment, we will never succeed in achieving a smoke-free society." Sullivan's comments, which came before the Senate Finance Committee drew immediate criticism from industry groups, which said vending machines contribute little to the problem of underage smoking. And his legislative proposals were attacked by some members of Congress as inadequate and contradicted by other Bush Administration policies. "A much stronger effort is required to achieve adequate enforcement, Sen. Kennedy said. "But Secretary Sullivan's half- hearted pan to reach this goal is certain to be ineffective." (Malcolm Gladwell & Anne Swardson, Washington Post, A3) EDITOR'S NOTE: "Most States Shrug Off Cigarette Sales To Kids," by Karen Goldberg, appears in The Washington Times, page A6. SENATE VOTES TO PROTECT RETARDED FROM EXECUTION The Senate voted Thursday to forbid federal courts from imposing capital punishment against the mentally retarded as it moved toward approval of a major expansion of death penalty provisions in federal law. While agreeing to protect the retarded, the Senate approved major new restrictions on appeals by death row inmates and it turned back an attempt to prohibit capital punishment in cases in which there is evidence that race was a factor in sentencing. It also voted to lower from 18 to 17 the minimum age at which a defendant can be sentenced to death. (Helen Dewar, Washington Post, A7) HOUSE DEMOCRATS ASSAIL JUSTICE AGENCY OVER SENTENCING FOR CORPORATE CRIME Democrats on a House Judiciary subcommittee challenged the Justice Department's explanation of why the agency rescinded its longstanding support for proposed tough new guidelines governing criminal sentencing of corporations. During the sometimes contentious questioning, the subcommittee's chairman, Rep. Schumer, suggested that, in fact, Attorney General Thornburgh ordered the endorsement withdrawn because business lobbyists, who vehemently oppose the guidelines as being too strict, had pressured the White House to intervene But a White House spokesman said Thursday that "It's simply not true" that the White House requested any changes in the sentencing guidelines. "The charge is groundless." (Paul Barrett, Wall Street Journal, A18) - White House News Summary Friday, May 25, 1990 -- A-18 BUSH VETOES AMTRAK AUTHORIZATION BILL President Bush vetoed Thursday legislation to increase federal money for Amtrak, saying "an unprecedented new regulatory requirement represents a step backward for the entire railroad industry." In a letter to Congress, Bush said the proposed provision that would tighten the regulation of takeovers of freight railroads by non-railroad entities represents an "unwarranted roadblock to financial restructuring." "There is already adequate authority to protect the public interest in acquisition situations," said Bush The House, which passed the bill 322 to 93, is expected to be able to muster the necessary two-thirds vote for a veto override. But it is uncertain if the Senate will be able to do SO. (UPI) FAA REBUKED FOR REMOVING CONTROLLERS Discrimination Cited On Insulin-Dependent The FAA came under congressional fire Thursday for removing air traffic controllers who are dependent on insulin from their jobs. "That's discrimination,' said Rep. Gerry Sikorski at a House civil service subcommittee hearing. "That's discrimination in favor of safety, sir," said Dr. William Hark, manager of the FAA's medical specialties division. Sikorski accused the FAA of disqualifying controllers based on fear, rumors and a false report that a. controller had been incapacitated by diabetes and found lying on the floor of his control tower. (Judith Havemann, Washington Post, A19) U.S. FACES $150 BILLION IN TOXIC CLEANUP COSTS Every Large Agency Involved, CBO Says The federal government owns or is responsible for thousands of facilities and sites contaminated by toxic wastes and faces long-term cleanup costs of more than $150 million, the Congressional Budget Office said in a report released Thursday. In addition to the well-documented environmental liabilities at the Energy Department's nuclear weapons manufacturing plants, the report said nearly every large government agency owns sites that it is legally responsible for cleaning up At some facilities, such as portions of the Energy Department complex at Hanford, Wash., radioactive contamination is so extensive that "complete cleanup may technically and economically unfeasible," the report said. (Thomas Lippman, Washington Post, A19) - White House News Summary Friday, May 25, 1990 -- A-19 DEM CHAIRMAN SAYS AILES CONNECTED WITH HORTON ADS COLUMBUS, Ohio -- Democratic state chairman James Ruvolo said Thursday he will ask the FEC to investigate the connection between Republican political consultant Roger Ailes and the notorious "Willie Horton" campaign ads of the 1988 presidential campaign. Ruvolo told reporters he has proof of an illegal connection between Ailes and a Bush-Quayle political action committee that produced television advertisements featuring furloughed murderer Willie Horton. Ruvolo, who planned to file his complaint Friday with the FEC, said the ads were racist, and noted that Ailes is now working for Republican gubernatorial nominee George Voinovich. (Lee Leonard, UPI) 3 GOP NATIONAL COMMITTEES OUTSPEND DEMOCRATS, FEC SAYS The three national Republican campaign committees raised $113 million over the first 15 months of this election cycle, more than four times the $24 million contributed to rival Democratic committees, according to FEC figures released Thursday. In an effort to bolster its fund-raising image, the Democratic National Committee, which reported $8.8 million in contributions for the period, announced Thursday that it received another $3.6 million in so-called "soft money" donations from unions, corporations and individuals through April. Soft money contributions are not subject to federal regulation or included in FEC reports. "The FEC figures shortchange our success," said Michael McCurry, DNC communications director Mary Matalin, chief of staff at the RNC, said her committee, which raised $43.2 million in the 15-month period, raised another $11.6 million in soft money through April -- about 21 percent of its total. (Charles Babcock, Washington Post, A13) EDITOR'S NOTES: "Profiteering In The Parks?" by John Lancaster, appears in The Washington Post, page A19. "Wife Of Aide Cut Down With Reagan Scoring Hits Against The Gun Lobby," by Philip Shenon, appears in The New York Times, page A18. "McFarlane Says Weinberger Libeled Him In Recent Book," by Roger Cohen, appears in The New York Times, page A19. -End of A-Section- NETWORK NEWS Thursday evening, May 24 POLL NBC's Jane Pauley: President Bush continues to get high marks from American voters in our latest NBC News/Wall Street Journal poll. Almost 3/4 [72 percent] approve of the job he's doing; [21 percent disapprove.] And 2/3 [68 percent] say they have positive feelings about him; [16 percent have negative feelings.] For Dan Quayle it's a very different story. Only 29 percent have positive feelings about the Vice President; [37 percent have negative feelings.] And when asked who they would prefer as Bush's running mate in 1992, Quayle or Secretary Baker, Baker is preferred almost two-to-one [47 percent to 25 percent.] Our poll also found that the President has lost a little ground with American voters when it comes to handling the economy. That's not surprising given the challenges he faces. (NBC-11) NBC's John Chancellor comments that the latest NBC News/Wall Street Journal poll shows that voters not only think a tax increase is on the way, most of them would not blame President Bush if taxes went up. The public is divided on the merits of more taxes, but the number of voters who say taxes should be raised has increased significantly in the last month. My view is that the cost of the S&L crisis is a factor in the public's new mood, and there's a new mood among some senior Republicans. Sen. Dole and Rep. Michel have been talking about raising additional revenue. Many people now believe that something serious needs to be done about the deficit and that nothing serious can be done without taxes being part of the package. Spending cuts alone won't do the job. When the President was asked today about his famous pledge, "Read my lips. No new taxes," all he would say is, "Things are complicated out there." The new poll makes them less complicated because it makes raising taxes less dangerous politically. Pauley: One more finding of our poll. Mikhail Gorbachev remains highly popular with Americans. As next week's summit approaches, 59 percent give him positive marks. The poll was conducted last weekend among 1,000 registered voters. (NBC-12) CHINA ABC's Peter Jennings: President Bush announced today that he will continue most-favored-nation trading status with the government of China, which means that China, like America's other large trading partners, will continue to benefit from the lowest possible trade tariffs. There was pressure on the President not to do this, but at a news conference this morning Mr. Bush said that punishing the Chinese government for its anti-democratic behavior would hurt American business, and that in his view economic contexts were the best way to promote reform in China. (ABC-2) "more- White House News Summary Friday, May 25, 1990 -- B-2 Pauley: President Bush had to make what he called an agonizing decision today -- punish the Chinese government or preserve the jobs of its people, and American jobs. The issue, renewing China's trade status as most-favored-nation. The President decided that that was the way he had to go, just 11 days before the anniversary of the Tiananmen Square massacre. NBC's John Cochran: The images of Tiananmen Square and the repression that followed aroused emotions in the U.S. President Bush has always said he is not a very emotional person, and today he emphasized that he tried to be calm and collected when he decided to renew most-favored-nation trading status for China. (President Bush: "And this was a difficult decision, weighing our impulse to lash out in outrage that we all feel against a sober assessment -- weighing that against a sober assessment of our nation's long-term interests.") If the U.S. were to take away most-favored-nation status from China, that would result in new American tariffs on Chinese imports like Barbie dolls. And the President said China would retaliate. (President Bush: "China buys about $6 billion a year of American aircraft and wheat and chemicals, lumber and other products. Lose this market and we lost American jobs: aircraft workers in the west, farmers in the great plains, high-tech employees in the northeast." Bush's decision was welcomed at an electronics firm which expects to sell about $25 million in robotic parts to China this year. (John Fuller, Foxboro Company: "By enabling us to continue to do business in China with the Chinese they will be exposed to the American economic system.") In Congress today some Democrats and Republicans said Bush should have punished China. (Sen. D'Amato: "I don't want and think that we should be giving comfort and support to the slavery, to the enslavement of Chinese people.") (Sen. Mitchell: "The answer is not more concessions. That doesn't make sense. It does not serve American interests.") (President Bush: "And what irks me is when some of the people up on the Hill accuse me of being less interested than they are in human rights." But Bush is confident he has the votes in Congress to put down any attempt to take away China's trading privileges. (NBC-2) CBS's Dan Rather: President Bush today renewed China's most- favored-nation trade status, saying it was the best way to promote the reforms for which the victims of Tiananmen Square gave their lives. At the same time Mr. Bush indicated he will not grant that same trade status to the Soviet Union, not at least now because of human rights problems there. The China decision set off an uproar in Congress which could overrule the President. CBS's Lesley Stahl: The President's decision ran into an immediate bombardment of criticism from Congress today, but the White House is still betting that the reaction will not be as intense nor as politically damaging as it was last year when he sent officials on a secret mission to Beijing shortly after the massacre in Tiananmen Square. Mr. Bush cited mainly economic reasons in defending his decision to renew the special trade concessions for China. - White House News Summary Friday, May 25, 1990 -- B-3 Stahl continues: (President Bush: "Isolation is bad, and economic involvement is good. And economic -- the whole fact that we've had economic involvement I think has moved China more towards reform than if we hadn't had it.") The President claimed that Chinese intellectuals favor his decision. (President Bush: "Students in China, according to our ambassador, want to see this MFN continue.") But Chinese students in the U.S. were quick and harsh in disagreeing. In a press release, they said the Goddess of Democracy is weeping, and protested that the hard-liners in Beijing will use the President's decision to consolidate their power. (Shen Tong, Democracy for China Fund: "President Bush on the one hand publicly says he will support the human rights struggle for China, for our movement. On the other hand he constantly did a lot of things against what he said publicly." The White House may have miscalculated the depth of outrage in Congress. (Sen. Mitchell: "The President's repeated concessions to the Chinese government have been met with intransigence. The answer is not more concessions. That doesn't make sense.") (Sen. D'Amato: "We'll trade with any killer, that we'll give any pirate, any bandit, anyone on the altar of political expedience the opportunity to do business with us.") Congressional leaders predict that majorities in both Houses are so incensed they'll vote to rescind the special trade status. But officials here say that Mr. Bush took his action only after being assured that Congress could not override a veto. (CBS-2) CAMBODIA Jennings: Just one other note from the President's news conference. Mr. Bush said he is reviewing U.S. policy towards Cambodia. The U.S. provides aid to the non-communist coalition that's been trying to overthrow the present Cambodian government. When Mr. Bush was asked about reports that this has the side effect of helping the murderous Khmer Rouge, also trying to overthrow that government, he said, "I am uncomfortable about it and we are reviewing the whole policy." (ABC-4) U.S.-SOVIET SUMMIT Jennings: Having dealt with China at his news conference, the President moved on to the much more complicated relationship the U.S. has with the Soviet Union. Mikhail Gorbachev arrives in Washington next Wednesday evening. ABC's Brit Hume: With less than a week to go before the summit the President suddenly seemed worried that people would expect too much from him, perhaps because of the headway on a strategic arms deal his Secretary of State brought back from Moscow last weekend. (President Bush: "I don't want to over-promise, but I don't want to act like I think it's just, you know, some kind of a dance out there on this meeting. Because what we're going to talk about is really substantive. We've got a lot of things that I think will be seen properly as progress. But there's enormous problems that just need to be talked about where I can't say there'll be an answer. - White House News Summary Friday, May 25, 1990 -- B-4 Hume continues: The President cited differences with the Soviets over German unification and lack of progress on reducing both sides' troops, tanks, and guns in Europe despite all the changes there. (President Bush: "I'll tell you what troubles me is that we're not -- somebody asked the question here -- not further along on conventional forces. And I think it does send a bad signal if the Soviets look like they are refusing to go forward and don't want to take full forces out of countries in accordance with previous deals.") The President was gloomy as well about breakaway Lithuania, where continuing Soviet pressure has made a deal for increased U.S.- Soviet trade politically impossible in this country. (President Bush: "I can't tell you I'm encouraged about where it stands right now. I have told you, told the American people, that this Lithuanian situation does cause certain tensions.") It's hard to know how seriously to take all this. With Mr. Bush lowballing the expectations, it might not take much give from the Soviets at the summit to create the appearance of major progress. Remember how Mr. Bush stole the show from Gorbachev at Malta by making unepected concessions. (ABC-3) LITHUANIA Pauley: The latest on Lithuania's standoff with Moscow. Soviet President Gorbachev hinted at a compromise today. He told a Lithuanian politician that the republic could win independence in two or three years if it suspends its declaration of independence. The Lithuanian's response, "We'll think about it." (NBC-4) USS IOWA Jennings: The U.S. Navy came as close as it ever has today to admitting that it botched the investigation into what caused the explosion oboard the USS Iowa last April, that it missed the truth. What it said, the explosion was most likely caused deliberately by gunners mate Clayton Hartwig, one of the 47 sailors to die. There was widespread cynicism about the Navy's investigation from the very beginning, about its methods and its conclusions all the way down the line. Today following new tests the Navy says it will reopen the case, which it had closed, and after an incident with gunpowder today has ordered that no more of the big 16-inch guns on any battleship be fired until further notice. ABC's Bob Zelnick reports that until today the Navy had claimed its strongest evidence that gunners mate Hartwig deliberately caused the explosion was the discovery of the remains of a foreign chemical device in the gun. But ABC News has learned that new tests by the highly respected Sandia Weapons Laboratory found no foriegn chemical substance. The tests, ordered by a skeptical Senate Armed Services Committee, found only materials common throughout the ship. The Navy said it had ruled out all causes except for an intentional act. Sandia's scientists concluded it could have been accidental. They were able to duplicate the explosion using the Iowa's own gunpowder together with the ramming device used to pack the powder in the gun. Sandia concluded that friction caused by an overextended rammer could have caused the blast. - White House News Summary Friday, May 25, 1990 -- B-5 Zelnick continues: The Navy was conducting its own tests of the accident theory today at the naval weapons station in Virginia, when an unexplained ignition occurred in one of the powder bags. It was a powder bag that exploded aboard the Iowa. And as a safety precaution the Navy suspended the live firing of 16-inch guns on all four battleships. Critics say the Navy owes Clayton Hartwig's family an apology. The Senate Committee devastated the Navy's technical case. Earlier, a House committee had all but destroyed the Navy's psychological theory that Hartwig had been driven to suicide by the collapse of his relationship with fellow Iowa sailor Kendall Truitt. Veteran Pentagon observers could recall no similar occasion when a major military investigation appeared to miss the mark by so much. (ABC-Lead) Pauley: It was a startling turnaround today by the U.S. Navy. More than a year after the deadly explosion aboard the battleship Iowa and many months after concluding the blast was probably set off intentionally, the Navy is reopening the investigation on indications it could have been an accident. (NBC-Lead) Rather: The U.S. Navy was forced tonight to reopen the investigation into last year's fatal explosion aboard the USS Iowa. The Navy also ordered an immediate halt to firing the big guns aboard all U.S. battleships. This is the first indication Navy brass may be backing off its insistence that the Iowa blast was deliberate and blaming it on one of the 47 sailors who died in the explosion. (CBS-Lead) ISRAEL Jennings: There is new tension today in the relationship between the U.S. and Israel. It grows out of the violence last weekend. Seven Palestinians were murdered and then others who were demonstrating were killed and several hundred were wounded. Now the State Department has indicated that U.N. observers might be useful in the occupied territories. Israel strongly disagrees. ABC's Dean Reynolds reports that the continuing violence is what moved the Bush Administration to say it would consider supporting the use of a U.N. observer team in the occupied territories. The Palestinians continue to be killed and wounded despite Israel's assurances that its military is acting with utmost restraint. But Israel is dead-set against U.N. observers in what it regards as its own backyard. (Foreign Minister Moshe Arens: "No, Israel would not accept U.N. observers on territory under Israeli control. Those people who incite the violence in the area and engage in violence in the area would feel encouraged.") Israelis are afraid the Palestinians would use the U.N. as a way to loosen Israel's grip on the terrotiries, making it possible for Palestinians to negotiate their future with the U.N. instead of Israel. The Palestinians say Washington's consideration of the U.N. observer idea is a plus. The turmoil has moved other nations to send their own observers here. A French team toured Gaza today, and tonight a Soviet delegation arrived to visit the occupied territories. All of this attention is affecting Israel. - White House News Summary Friday, May 25, 1990 -- B-6 Reynolds continues: Tonight, when Palestinians defied a curfew in Gaza, the army steered clear in accordance with brand new orders restricting the use of force. That response to international pressure might quiet things down a bit, but the bloodshed this week has simply put the problem back in the world spotlight and shown once again how far it is from a solution. Jennings: From the American point of view this new level of violence -- six Palestinians killed and 650 wounded by the army in a single day last Sunday -- is a powerful argument for Israel to sit down and talk with the Palestinians. ABC's John McWethy: It is especially the reports of Palestinian children being killed that are moving President Bush to slightly toughen U.S. policy toward Israel. (President Bush: "I am troubled about the loss of human life in this area. I am deeply troubled about -- well, totally human life, but I think particularly of children in this kind of situation.") Despite strong Israeli objections American officials say that tomorrow in Geneva at the U.N. Security Council meeting the U.S. will not stand in the way of an Arab-backed resolution to send U.N. observers to inspect the West Bank and Gaza. (State Department spokeswoman Tutwiler: "Let me remind you, which I know you know, that U.N. officials have visited the occupied territories before to investigate the situation.") The U.S. reportedly will veto any tougher resolutions calling for a permanent observer group in the occupied territories. Even so, American officials are well aware that the milder measure is still sending a strong message to Israel that the Bush Administration is finding the violence plus Israel's refusal to sit and negotiate with the Palestinians less and less tolerable. (ABC-7) NBC's Martin Fletcher reports that aides to Prime Minister Shamir believe President Bush is using the idea of a U.N. observer group as yet another stick to beat Israel. They believe Bush just doesn't like Shamir and that's affecting U.S. policy. Bush says he just wants to get peace talks going, and he's also worried about the surge in violence in the occupied territories. (President Bush: "I am troubled about the loss of human life in this area, particularly of children in this kind of situation.") Today in one clash three Palestinians under 10 years of age were hit by rubber bullets. One is seriously wounded. And a five- month-old Jewish baby was hit in the head by a rock thrown by Palestinians. But the violence is just the latest strain in the relationship between America and Israel. The root of the problem between Jerusalem and Washington is that Prsident Bush just doesn't believe Prime Minister Shamir seriously wants to talk peace with the Palestinians. And until he does things can only get worse. (NBC-3) ECONOMY Rather: It turns out the U.S. economy was growing a lot more slowly in the first quarter of the year than the government first reported. New facts and figuring today indicate that the GNP grew at an annual rate of just 1.3 percent. Inflation, as measured by the GNP, was running at an eight-year high -- 6.7 percent. (CBS-5) - White House News Summary Friday, May 25, 1990 -- B-7 CLEAN AIR Pauley: After a 13-year battle the House has voted overwhelmingly to approve the clean-air bill, but some big questions remain. Just how much will clean air cost, and exactly who will pay for it? NBC's Andrea Mitchell reports that Congress' sweeping clean-up bill could cost $21.5 billion -- higher prices for cars, gasoline and utility bills in return for less smog, less toxic fumes, less acid rain. Automobiles. The government says tougher curbs on tailpipe emissions, the first in 20 years, will add at least $100 to the price of a new car. The auto industry says the cost will be even higher. Three-hundred-thousand new cars which can burn clean fuel will have to be built at great expense and sold in Los Angeles by 1997. That was a last-minute cave-in to the auto industry. Gasoline. By 1992 all cars in the nine cities with the worst smog will have to burn cleaner gas. Toxic chemicals. Plants ranging from big factories to small dry cleaners will have to install technology over the next 10 years to control poisonous fumes. The goal, reducing at least 2,200 yearly cancer deaths attributed to toxic emissions. Acid rain. Utilities would have to cut their sulfur dioxide emissions in half over the next 10 years. Electricity bills in some areas could almost double. This bill is already in trouble, because it includes payments to workers who lose their jobs as industries are forced to clean up. The White House says that would simply cost too much and is threatening a veto. (NBC-5) SMOKING Jennings: There was a call today for new laws to protect children from tobacco. Forty-four states already have laws that are supposed to prevent children from buying tobacco. HHS Secretary Sullivan has told Congress that all states should have them and should take even stronger action. ABC's Sheilah Kast reports that Sullivan says state laws against selling to minors are rarely enforced. (Sullivan: "It is a moral and medical outrage that our society permits so many of its children to have such ready access to a product that does so much harm.") Sullivan wants the states to regulate licenses and cigarette machines. But some congressional Democrats say he's passing the buck. They want a federal law. (Rep. Atkins: "The Administration is trying to have it both ways by placating the American citizen with soothing words about health while winking to the cigarette industry that no federal action will be forthcoming.") The tobacco industry said Sullivan's proposals will not work. The strength of the tobacco lobby guarantees a struggle over federal or state action. (ABC-5) Pauley reports that Sullivan's stand was criticized by Democrat Edward Kennedy who called it ineffective and half-hearted. Kennedy said the problem is national and should be addressed at the federal level. (NBC-6, CBS-4) -970m- White House News Summary Friday, May 25, 1990 -- B-8 DEATH PENALTY Pauley: The Senate voted today to block the use of the death penalty against the mentally retarded. That would reverse a Supreme Court decision of last year. Sen. Biden argued, "Just because the Supreme Court says we can do it doesn't mean we should." (NBC-10, CBS-10) SKIN CANCER Pauley: Federal health officials today issued a summertime skin cancer warning saying Americans should cut down on sunbathing. They said that in the past decade the death rate from the most deadly form of skin cancer linked to some exposure, melanoma, rose more than 25 percent. (NBC-7) NATIONAL PARK INCOME Rather: President Bush's Interior Secretary Lujan today proposed raising the fees on private operators of hotels and other concessions allowed in national parks. Lujan said the fees should go up for park upkeep. This follows a report showing the Park Service got only $13 million out of the $506 million private business made off the public's parkland in 1988. (CBS-6) BOMB Rather: A bomb blast ripped open a car in Oakland, CA, today. Two people inside, a 30-year-old man and a 40-year-old woman were injured. Both are environmental activists involved in a protest against cutting down redwood trees in Northern California. The woman reportedly had received death threats. (CBS-7) -end of B-section- EDITORIALS/COLUMNISTS BUDGET SUMMIT Reading Wall Street's Lips -- " Raising taxes, which now seems more politically possible than at any time in recent years, is good for the stock market. It would tend to reverse [many] pernicious [economic] trends and could provide a psychological boost as the country appears finally to be solving one of its worst domestic difficulties. Quite apart from any political reservations Bush may feel about taxes and government, he has attributed much of his opposition to tax increases to his worry that they would tend to stifle the economy. The alternative, however, is to force the Federal Reserve System to address another consequence of persistent deficits, inflation, with a stringent monetary policy that could be harsher on the economy than the effects of a tax increase." (Boston Globe, 5/18) Bush Should Go On TV And Let Us Read His Lips -- " The President should be ready and willing to start building a consensus for the hard choices that deficit reduction will demand, even if the details aren't set yet. That would help commit both sides to a successful outcome and prepare the American people for the sacrifices they will have to bear. Bush says a speech would unduly alarm the financial markets by overdramatizing the deficit problem, with painful consequences. That's an unnecessary fear: If the Administration marched out, flags flying, to fight the deficit, there would be no louder huzzahs than from the business and financial communities." (Newsday, 5/17) The Deficit -- Let's Cut Spending To Fix It -- " The federal government must now decide whether to help or hurt a nation struggling to regain its competitive edge. Will Congress spend less, thus helping Americans adjust to competition? or will Congress demand more, further cutting the income of people who have already tightened their belts considerably? Americans have answered those questions over and over again -- poll after poll, presidential election after presidential election. They want the federal government to cut spending. Why doesn't the federal government just do it?" (Charleston Daily, 5/17) Read My Lips: 'Boooo!' -- "George Bush doesn't want to frighten you. Sure, he's worried about the budget deficit, and he's asked a lot of leaders from Congress, even mean ol' Democrats, to worry with him. But he doesn't want you to worry. Not yet, anyway. The mean ol' Democrats want to shove him in front of the TV cameras right away and make him say the economy is going to hell in a handbasket. They'd probably even like to make him cry -- right there on national television! But George knows that would frighten you. Heck, it might even frighten The Markets, and if that happened the economy really would go to hell in a handbasket George went on television to say that he wouldn't go on television because 'I don't want to inadvertently send the wrong signals to The Markets.' The Markets didn't know what to think. They didn't go up and they didn't go down. And the budget deficit? It just kept on getting bigger -- which would frighten us if we were really paying attention." (Louisville Courier Journal, 5/17) - White House News Summary Friday, May 25, 1990 -- C-2 The Solution: Spend Less -- " Instead of looking for new taxes, government should look for ways to trim spending. In Washington, one of those is by sticking to not only the provisions but the intent of the Gramm-Rudman-Hollings Balanced Budget Act Instead of looking for the President to give his blessing to a tax increase, congressional leaders should gird their loins and take battle-axes to the deficit in their own appropriations process. If they cannot make Gramm-Rudman work, the Balanced Budget Amendment is still lurking off in the corner, waiting to be given new life." (Sunday Chieftain, New Mexico, 5/13) A Budget Opening -- " In a $6 trillion economy, what counts is not hitting the target precisely but a national policy that keeps reducing the deficit over the long term. To do that, the summit must produce a multiyear plan for spending and taxation that charts a sound fiscal policy and a set of priorities for the challenges of the 1990s. That should include higher revenues from closing income tax loopholes and bigger taxes on gasoline and spending cuts in programs such as farm price supports. Equally important, the policy that emerges should present a blueprint for redirecting the nation's resources from the Cold War to the investments -- in education, infrastructure, scientific research and in dealing with the problems of children and the inner cities -- necessary to build equal economic opportunity at home and competitive vigor abroad. " (Sacramento Bee, 5/11) A Balancing Act -- " If President Bush, who made 'no new taxes' the centerpiece of his presidential campaign, is willing to consider the dreaded 'T word, the least they can do is ponder several options. The most likely revenue sources under discussion will be value-added taxes, more user fees and higher taxes on gasoline, liquor and cigarettes. A combination of some or all of these revenue enhancements, coupled with significant spending cuts, could produce the 1991 savings required by Gramm-Rudman without raising income taxes. And indeed, an income tax increase at this point would be a mistake. It would stunt economic growth overall and slow new jobs creation. " (Torrance Daily Breeze, 5/11) Read Our Lips -- " No doubt trimming the deficit will be painful all the way around, whether the medicine is in the form of spending cuts or tax increases, or, more likely, a combination of both. But the President has to be careful. The problem is not that Washington has too little money. It spends too much money. If there are to be more taxes, they should come as the last resort, and Bush should have an ironclad way of making sure they will go only toward deficit reduction. Otherwise, people might start wondering which side of the mouth we're supposed to 'read my lips' on." (Birmingham News, 5/10) -end of News Summary- budget negotiators met for more than three hours yesterday, with a large por- tion of the time devoted to a briefing on the administration's updated economic CONGRESSIONAL forecasts. The leaders will eventually try to ne- gotiate a deficit-reduction package to lower the anticipated red ink for fiscal 1991. But MONITOR first, the negotiators want to get a handle on the magnitude of their task. During yesterday's session, Budget Director Richard G. Darman told negoti- C ators that the administration has revised downward its original forecast for 1991 economic growth, from 3.3 percent to 2.9 Friday, May 25, 1990 Volume 26, Number 83 percent. And, according to Darman, the estimated interest rate for 10-year Trea- sury bills for 1991 has been raised from 6.8 percent to 8 percent. The sluggish News From the Hill performance of the economy has caused the administration to raise its estimate of the fiscal 1991 deficit. Some Democrats observed after the SENATE FLOOR: Mitchell to billion fiscal 1990 emergency supplemen- meeting that the administration's long- file cloture on omnibus crime bill. tal appropriations bill (HR 4404), but re- range forecasts were changed only little, The Senate yesterday continued to jected conferees' proposal to provide however. debate S 1970, an omnibus anticrime bill. $238 million for an ammunition plant in Senate Budget Committee Chairman But late yesterday, Sen. Majority Louisiana. Jim Sasser, D-Tenn., told reporters that Leader George J. Mitchell, D-Maine, an- The bill would provide $720 million Democratic leaders seem to be reaching nounced that over 250 amendments were to Panama and Nicaragua and $3.5 bil- the consensus that a deficit-reduction pending to the bill and acknowledged lion for other foreign aid and domestic package should cut about $600 billion that it could not be finished before mem- programs. over five years. But his GOP counterpart, bers left for a Memorial Day recess. Late yesterday, after approving the Pete V. Domenici, N.M., said that Re- Mitchell said he would file for a cloture conference report, the House was continu- publicans agree only that the agreement vote, to end debate, on June 5. ing debate on its amendments. Under the must be credible and multiyear. Before leaving for the recess, how- procedure for clearing a conference report, The leaders will meet again on June ever, Mitchell said the Senate would con- members first vote on approval of the re- 6, after Congress returns from its Memo- sider the conference report on the $4.4 port itself and then on each amendment rial Day recess. billion "dire emergency" fiscal 1990 sup- agreed upon by conferees. plemental bill (HR 4404) once the House Members spent the afternoon debat- SECURITIES FRAUD measure completed work on it. ing and voting on a variety of programs, approved by Senate Banking. Earlier, the Senate rejected, 38-59, including pet projects for members' dis- The Senate Banking Committee yes- an amendment to S 1970 by Strom Thur- tricts, which the Senate had added to the terday approved by voice vote a bill (S mond, R-S.C., that would have allowed House bill. Members agreed, 246-160, for 647) granting the Securities and Ex- the death penalty for the mentally re- instance, to a Senate amendment to pro- change Commission (SEC) expanded tarded except for those individuals who vide funds for a fish farm in Arkansas power to combat securities fraud. do not know the difference between right and a fish and wildlife refuge in Iowa. The bill, which was requested by the and wrong. Provisions in the bill overturn By a vote of 33-376, House lawmak- SEC, would allow courts to permanently a Supreme Court decision allowing the ers refused to fund an ammunition plant bar a person who has been convicted of death penalty for the mentally retarded. in Louisiana, which was favored by influ- securities violations from working for a Members adopted, 58-38, an amend- ential Democratic Sen. J. Bennett John- securities firm. ment by Bob Graham, D-Fla., striking ston, chairman of the Energy and Water The SEC would be able to impose from the bill a provision that would have Appropriations Subcommittee. penalties of up to $500,000 against a per- allowed the use of racial statistics to sup- Members also agreed, 284-143, to a port appeals in capital punishment cases. Senate amendment to acquire and trans- Graham said the plan would "have fer a ferry boat to American Samoa. the practical consequence of repealing Senate Majority Leader George J. Notice capital punishment" because states Mitchell, D-Maine, said the Senate would not have been able to meet the would dispense with the bill before leav- To Subscribers proposal's standards. ing for the Memorial Day recess. Because of the Memorial Day The Senate also reversed a decision Late Wednesday, the House passed, holiday the Congressional Monitor it had made Wednesday night and ap- 401-21, a sweeping overhaul (HR 3030) of will not be published on Monday. The proved, 52-46, an amendment by Thur- the Clean Air Act. The measure includes next issue will be on Tuesday, May 29. mond to shorten the habeas corpus ap- a compromise between Energy Commit- Since Congress will be in recess, there peals process for death row inmates. tee Chairman John D. Dingell, D-Mich., will not be any other issues during the Before reconsideration of the amend- and Energy Health Subcommittee Chair- week of May 28. The first post-recess ment, it had been defeated, 47-50. man Henry A. Waxman, D-Calif., over issue will be published on Monday, clean-fuel requirements for vehicles. June 4. HOUSE FLOOR: Supplemental The Senate and the House are funding bill moves toward approval. BUDGET NEGOTIATORS hear both scheduled to reconvene on Tues- The House voted 308-108 yesterday more economic data. day, June 5. to adopt a conference report to the $4.4 The White House and congressional Page 2 Congressional Monitor Friday, May 25, 1990 son convicted of violating securities laws. reauthorize for three years the Defense the nation's farmers. The committee also approved by Production Act. Lawmakers have been grappling voice vote another bill (S 2028) designed S 1379, which also was approved by with how to provide farmers with ade- to pressure foreign countries to open up voice vote, is designed to promote a quate support while enabling the govern- their financial markets to U.S. banks. stronger industrial U.S. base. An amend- ment to keep spending down. The legislation would establish a ment approved by voice vote would allow The panel approved a proposal by policy of "reciprocal national treatment," American companies loan guarantees to Dan Glickman, D-Kan., chairman of the which would require regulators to treat continue development of defense-related Wheat, Soybeans and Feed Grains Sub- foreign banks in the same fashion as U.S. technology. committee, and Ron Marlenee, R-Mont., banks are treated in those countries. Un- that would freeze target prices on wheat der the current policy of "national treat- HOUSE AGRICULTURE works at $4 a bushel until 1995. ment," foreign banks are treated essen- on commodity target prices. The proposal would set loan rates at tially the same as domestic banks. The House Agriculture Committee 85 percent of the average market price In addition to approving S 2028 as a moved towards completion of the 1990 from the previous five years. That would free-standing bill, the committee also at- farm bill (HR 3950) late yesterday after be an increase over current law. tached it as a new title to S 1379, a bill to reaching agreements on subsidy levels for The target price is the amount the government sets as the ideal price for a commodity. The loan rate is the amount the government gives the farmers before Bush Vetoes Amtrak Authorization planting to assure they can afford to put crops in the ground. President Bush yesterday vetoed a bill (HR 2364) to authorize $2 billion over Besides wheat, the committee com- three years to Amtrak, the national passenger railroad, because of a provision in pleted work on three other sections: feed the legislation to bring railroad acquisitions under new government scrutiny. grains, oilseeds and sugar. It was the president's first veto of 1990 and the 11th of his presidency. None has Late yesterday, the panel was plan- been overturned by Congress. (See chart, below) ning to delay action on the conservation The provision in HR 2364 that attracted the veto would have required the and research titles until after lawmakers Interstate Commerce Commission to review proposed acquisitions of major rail- return from the Memorial Day recess. roads by non-railroad companies. Bush said that provision would set an unnec- Still, Chairman ."Kika" de la Garza, D- essary "regulatory burden" on those types of transactions. Texas, said that the committee's work on The bill also would have permitted Amtrak to provide commuter rail service the reauthorization measure was essen- between Northern Virginia and Washington, D.C. tially done. An Amtrak spokesman, Clifford Black, said the veto would have no effect on The committee worked late on daily train operations because the railroad is working from money that Congress Wednesday night to complete the bill's already appropriated for 1989-1992. But he said the the veto would indefinitely sections on wool, honey, dairy and gen- postpone plans for a commuter line being developed between Washington and its eral commodity provisions. Northern Virginia suburbs. Meanwhile, the Senate Agriculture The following table shows President Bush's vetoes: Committee postponed further action on its version of the farm bill until it devises 1989 a commodities price support system ac- ceptable to both Republicans and Demo- Bill Bill Description Date Outcome* crats on the committee. HR 2 Minimum Wage Increase June 13 House sustained, 247-178 CHINA GAINS MFN status; S J Res 113 FS-X Plane Codevelopment July 31 Senate sustained, 66-34 Congress reacts against decision. H J Res 390 Thrift-bailout bill Aug. 16 No override attempt President Bush yesterday extended enrollment requirements (pocket-vetoed) China's most-favored-nation (MFN) HR 2990 Labor, HHS, Education trade status for another year. The action FY 1990 Appropriations Oct. 21 House sustained, 231-191 drew immediate criticism from Congress, HR 3026 District of Columbia and many vowed to try to overturn the decision. FY 1990 Appropriations Oct. 27 No override attempt Congress could pass a resolution HR 2939 Foreign Aid blocking Bush's granting of MFN, but Re- FY 1990 Appropriations Nov. 19 No override attempt publican leaders told the president earlier HR 3610 District of Columbia this week that they believe it is unlikely FY 1990 Appropriations Nov. 20 No override attempt such an effort would be successful. HR 1231 Eastern Airlines Strike The MFN privilege gives Beijing the Resolution Nov. 21 No override attempt lowest tariffs on exports to the U.S. mar- ket. The decision to continue the policy HR 1487 State Department to China has generated fierce controversy Authorization Nov. 21 No override attempt in the United States since China's bloody HR 2712 Chinese Immigrant Status Nov. 30 Senate sustained, 62-37 crackdown a year ago on pro-democracy demonstrators in Tiananmen Square. 1990 "This was a difficult decision, weigh- ing our impulse to lash out in outrage Bill Bill Description Date Outcome* that we all feel [and] weighing that HR 2364 Amtrak Authorization May 24 against a sober assessment of our nation's long-term interests," Bush said. *Veto overrides require a two-thirds majority vote of both houses. Chinese officials had made it clear that they would retaliate against U.S. Friday, May 25, 1990 Congressional Monitor Page 3 goods sold in their country if the trade meeting with Hiler to work out, concerns cense stores that sell tobacco, just as li- status was canceled. about some of his proposals, he said. censes are now required to sell alcohol. The decision drew sharp criticism The subcommittee approved a mas- Sullivan said the proposed plan was from Democrats and some Republicans sive overhaul of all federal housing pro- approved this week by President Bush. in Congress. grams May 10, including an amendment He said his department had drafted Senate Majority Leader George J. from Hiler to relax the National Manu- a model law for adoption by the states. Mitchell, D-Maine, told a news confer- factured Housing Construction and The law would set graduated penalties, ence, "I very much regret the president's Safety Standards Act of 1974. decision. It is inconsistent wit American including fines and license suspensions, The issue will be revisited as the full for illegal cigarette sales to minors. values, it is contrary to American inter- committee begins marking up the legisla- ests. It is profoundly wrong." Utah Sen. tion June 5 and 6. Chairman Henry B. Jake Garn, a conservative Republican, Gonzalez, D-Texas, strenuously objected also opposed the decision, saying, to the changes, which he said would risk Not As Scheduled "Tiananmen Square was SO abhorrent to the health and safety of millions of home- me. The Chinese should be punished." The Senate Foreign Relations Com- owners. Three subcommittees of the House mittee postponed a markup session yes- terday because of a Republican Foreign Affairs Committee held a hearing FISH INSPECTION should not objection to the meeting. The panel was on China's MFN status yesterday, where be in hands of FDA, Mitchell says. scheduled to vote on a fiscal 1991 State both Democrats and Republicans said Senate Majority Leader George J. Department authorization bill (S 2296) that the president should have imposed Mitchell, D-Maine, yesterday told the and on several ambassadorial conditions on China before granting the Senate Commerce Committee that any nominations. trade status. mandatory fish inspection system should The Senate Judiciary Committee Stephen J. Solarz, D-N.Y., said that be overseen by the Department of Agri- also postponed its session yesterday, be- the Congress should pass legislation re- cause key members were busy on the culture (USDA). quiring that the Chinese meet certain hu- floor working on the omnibus anticrime Mitchell and Health and Human bill (S 1970). The panel was scheduled man rights conditions before MFN is ex- Services Secretary Louis W. Sullivan of- to mark up an administrative law tended into next year. But Tom Lantos, fered differing views to the committee on jugdes bill (S,594) and consider pending D-Calif., and Sam Gejdenson, D-Conn., which agency should regulate the fish in- nominations. argued that Congress should simply pass dustry. Currently, the Food and Drug legislation disapproving the action now. Administration (FDA) oversees the fish Richard Solomon, assistant secretary industry's self-regulation program. of State, said that lawmakers should keep Mitchell said the USDA already reg- CONGRESSIONAL in mind that MFN is a normal trade status, ulates meat and poultry and "is best po- not a special designation. "If we take a sitioned to support the [fish] industry to MONITOR highly punitive approach we are likely to achieve global competitiveness" He play to the most xenophobic and reaction- added that the USDA also has more Managing Editor: Brian Nutting ary elements in China," Solomon said. "public confidence" than does the FDA. Senior Editor: Robert Healy Sen. Alan Cranston, D-Calif., said Sullivan said the administration be- News Editors: Christine C. Lawrence, Amy the Senate Foreign Relations Committee lieves that the FDA and the Department of Stern will hold a hearing June 5 on the eco- Commerce should be allowed to run the Senior Reporters: Ray Perez, Dinah nomic and political implications of the seafood quality programs through user fees Wisenberg MFN decision and on the status of hu- imposed on the industry. The federal gov- Reporters: Thomas Galvin, Elizabeth A. man rights in China. ernment pays for all food inspection pro- Palmer, Andrew Taylor In a related development, Bush said Editorial Assistant: Michael P. Shea grams operated by the USDA. he would not grant MFN trade status to The committee is considering a bill (S the Soviet Union during next week's su- 2228) that would authorize the Commerce Published by Congressional Quarterly Inc. perpower summit because Moscow has Department to establish a comprehensive failed to overhaul its emigration policy. Chairman: Andrew Barnes system for inspecting seafood and to issue President: Richard R. Edmonds standards on the safety and quality of MANUFACTURED housing Editor and Publisher: Neil Skene seafood sold in interstate commerce. changes get HUD's backing. Executive Editor: Robert W. Merry Earlier this week, the Senate Agri- The Department of Housing and Ur- culture Committee approved a seafood ban Development came out yesterday be- inspection bill (S 1245) that would direct The Congressional Monitor is published hind Indiana Republican John Hiler's ef- the FDA to set standards but have the Monday through Friday when Congress is in ses- forts to change the federal law governing USDA administer the mandatory inspec- sion and is available only by subscription for manufactured housing in the 1990 hous- $1,120 per year. Each additional copy delivered tion program. to the same address is $375 per year. This fee ing bill (HR 1180). includes hand-delivery in downtown Washington At a hearing before the House Bank- CIGARETTE VENDING ma- or first-class mail beyond the delivery area. To ing Subcommittee on Housing and Com- subscribe, call 887-6279. chine ban proposed by Sullivan. munity Development, HUD's deputy assis- Subscribers in the Washington, D.C., area Health and Human Services (HHS) should call our Customer Service Department at tant secretary for single family housing, Secretary Louis W. Sullivan yesterday 887-8626 before 9:30 a.m. on any day they don't Ronald A. Rosenfeld, said, "We applaud urged that states be required to ban ciga- receive a Congressional Monitor. Congressman Hiler's longstanding and Subscribers also receive access to a Hotline rette vending machines as part of a plan positive efforts to create a suitable regula- question and answer service (202) 887-8515; a 24- to curb tobacco sales to minors. hour tape recording of the day's highlights on tory environment that enhances the pro- Sullivan told the Senate Finance Capitol Hill (202) 887-8518; and Congress in duction of manufactured homes." Committee that beer is not sold through Print - a weekly listing of committee publica- Rosenfeld said HUD Secretary Jack tions. vending machines, SO "why should you be F. Kemp views the manufactured hous- Copyright 1990, Congressional Quarterly able to purchase cigarettes there?" Inc., 1414 22nd Street N.W., Washington, D.C. ing industry as a major source of afford- The HHS secretary also said the ad- 20037. (202) 887-8500. able housing. The agency, however, is ministration recommends that states li- Page 4 Congressional Monitor Friday, May 25, 1990 News Events & Committee Meetings Today Senate Committees News Events LIMITS ON TRUCK SIZE Citizens for Reliable and Safe Highways (CRASH) will hold a meeting to announce USS IOWA INVESTIGATION official formation of the organization and to The Monitor has received notice of the Senate Armed Services Committee launch a campaign urging Congress and the following events scheduled to take place in The full committee (Chmn Nunn, D-Ga) president to oppose plans to legalize 100-foot Washington. Associations, non-profit organiza- will hold a hearing on the Navy's investigation long double and triple trailer trucks. tions and public interest groups who wish. to into a gun turret explosion aboard the USS 11am, Capitol Bldg (House Triangle - in case have events listed in the section should send Iowa. The results of the Navy investigation of rain this event will be in 2253 Rayburn Bldg) pertinent information to: The Congressional have been challenged. May 25 Monitor, Other Events Editor, 1414 22nd St. 9am SH-216 Hart Bldg May 25 Contact: Bill Bronrott at 652-6016 N.W., Washington, D.C. 20037. Notices must Witnesses scheduled: Frank Conahan - Gen Ac- Participants: Joan Claybrook pres, Public Citi- counting Ofc; Richard Schwoebel - Sandia Natl include a telephone number. Notices may be zen; John Jackson brother of individual killed in Lab transmitted by facsimile to 728-1862, attn: crash with a double trailer truck; Gerald Robert Healy. Only events related to Congress Donaldson dir of hwy safety, Ctr for Auto Safety; can be listed. Deadline is Noon. For further Paul Loveday - vpres, Itel Corp; driver of triple information call (202) 887-8686. trailer truck TBA House Committees ESOP CONFERENCE ECONOMIC INDICATORS Employee Stock Ownership Plan (ESOP) AND REPORTS Association's 13th annual conference is held. 8:30am: Commerce Department releases MANUFACTURED HOME Attending the conference is Dr. Valery merchandise trade on balance of payments AND SAFETY STAN ARDS ACT Rutgaizer, director of economic science and basis for the first quarter Housing and Inmunity Development deputy director of the National Public Opin- 9am: National Association of Realtors re- Subcommittee Mnn Gonzalez, D-Texas) of ion Research Center in the Soviet Union, as leases the April Existing Home Sales report House Bank Finance and Urban Affairs well as envoys from 10 other countries. Final 10am: Commerce Department releases per- Committ will hold oversight hearings on the of three days. sonal income for April Manufactured Home Construction and Safety 8am, Grand Hyatt, 1000 H St NW May 25 4pm: Treasury Department auctions a 52- Standards Act of 1990. Contact: Todd Bernhardt, 202-293-2971 or week T-bill issue 10am 2128 Rayburn Bldg May 25 the hotel, 202-582-1234 4:15pm: Federal Reserve releases weekly Note: This hearing has not been rescheduled. Congressional highlight conditions report of large commercial banks 8am: Rep Rohrbacher, R-Calif, addresses the con- vention 1990 Congressional Schedule Congressional recesses are in boldface type SENATE HOUSE May 25-June 4 Senate not in session May 25-June 4 District Work Period May 28 Memorial Day May 28 Memorial Day June 5 Senate reconvenes June 5 House reconvenes June 10 Appropriations reports last bill June 15 House completes reconciliation July 2-9 Senate not in session July 2-9 District Work Period July 4 Independence Day July 4 Independence Day July 10 Senate reconvenes July 10 House reconvenes July 15 President's mid-season budget report August 6-Sept. 4 Senate not in session August 6-Sept. 4 District Work Period August 15 Initial CBO 'snapshot' August 20 Initial CBO report August 25 Initial OMB report September 3 Labor Day September 3 Labor Day September 20 Rosh Hashana September 20 Rosh Hashana September 29 Yom Kippur September 29 Yom Kippur October 1 FY91 begins October 5 ADJOURNMENT TARGET October 5 ADJOURNMENT TARGET October 8 Columbus Day October 8 Columbus Day October 10 Final CBO report October 15 Final OMB report November 6 Election Day November 6 Election Day November 22 Thanksgiving Day November 22 Thanksgiving Day New listing Revised listing Friday, May 25, 1990 Congressional Monitor Page 5 Senate Committees Future Listings Armed Services Committee will continue hear- USE OF RECYCLED MATERIALS Agriculture, ings on the defense authorization request for Consumer Subcommittee (Chmn Bryan, D- fiscal 1991 (S 2171), focusing on the B-2 Nev) of Senate Commerce, Science and Trans- Nutrition & stealth bomber program. portation Committee will hold a hearing on 9am SR-253 Russell Bldg June 6 legislation (S 1884) to promote the use of Forestry Witnesses scheduled: Donald Rice Jr secy of the recycled materials derived from municipal Air Force; Larry Welch - chief of staff, Air Force refuse. 224-2035 2pm SR-253 Russell Bldg June 13 1990 FARM BILL Full Committee Markup Banking, Housing Senate Agriculture, Nutrition and Forestry Environment & Committee (Chmn Leahy, D-Vt) will continue & Urban Affairs marking up draft legislation to authorize farm programs. 224-7391 Public Works Time TBA SR-332 Russell Bldg dates TBA 224-6176 FINANCIAL SERVICES INDUSTRY MODERNIZATION ENVIRONMENT CMTE MARKUP Senate Banking, Housing and Urban Af- Senate Environment and Public Works Appropriations fairs Committee (Chmn Riegle, D-Mich) will Committee (Chmn Burdick, D-ND) will mark continue hearings on modernizing the finan- 224-3471 up pending legislation. cial services industry. 10am SD-406 Dirksen Bldg June 12 Time TBA SD-538 Dirksen Bldg dates Agenda: FY91 DEFENSE APPROPS TBA S 203 Authorize research into groundwater con- Subcommittee Hearings taminants and ways to improve groundwater Defense Subcommittee (Chmn Inouye, D- quality Hawaii) of Senate Appropriations Committee S 1140 - Provide that fed facilities meet and will hold hearings on fiscal 1991 appropria- Commerce, comply with fed and state environmental laws tions for programs under its jurisdiction. and requirements 9am SD-124 Dirksen Bldg closed June 7 S 1178 Improve and expand prgms for the protec- Science & tion of marine and coastal waters 9am SD-192 Dirksen Bldg June 12 S 1731 - Provide for the creation, restoration, Agenda: Transportation protection, enhancement, and conservation of June 7: European command coastal wetlands, conserve North American wet- June 12: Defense secy 224-5115 land ecosystems and waterfowl and other migra- tory birds and fish and wildlife that depend upon such habitats FY91 FOREIGN OPS APPROPS FTC & ANTITRUST ISSUES S 1893 - Reauthorize the Asbestos School Hazard Subcommittee Hearings Consumer Subcommittee (Chmn Bryan, D- Abatement Act Foreign Operations Subcommittee (Chmn Nev) of Senate Commerce, Science and Trans- S 2176 Provide better enforcement of the U.S. Leahy, D-Vt) of Senate Appropriations Com- portation Committee will hold a hearing on environmental laws Short title: Pollution Pros- mittee will hold hearings on fiscal 1991 appro- the Federal Trade Commission (FTC) and ecution Act of 1990 antitrust issues. S 2371 - Direct the National Academy of Sciences priations for programs under its jurisdiction. Note: This schedule is tentative 9:30am SR-253 Russell Bldg June 6 to conduct a study of the feasibility of an um- brella research arm to support research on a 2:30pm SD-138 Dirksen Bldg June 5, 12 & variety of environmental issues 19 S 1875 - Redesignate the Calamus Dam and Reser- 9am & 2:30pm room TBA June 26 COMMERCE CMTE BUSINESS voir authorized under the Reclamation Project Agenda & witnesses: Senate Commerce, Science and Transpor- Authorization Act as the Virginia Smith Dam June 5: Managing US foreign aid: William tation Committee (Chmn Hollings, D-SC) will and Calamus Lake Recreation Area Roskens adminr, AID; Herbert Beckington meet to consider pending business. 16 General Services Admin prospectuses inspector gen, AID; Glen Rudd - dpty dir, De- 10:30am SR-253 Russell Bldg June 7 11(b) resolution fense Security Assistance other pending business June 12: Eastern Europe: Lawrence Eagleburger dpty secy of State June 19: US military assistance in the 1990s: NOAA OVERSIGHT Reginald Bartholomew under secy of State; Gen Senate Commerce, Science and Transpor- Charles Brown dir, Defense Security Assistance tation Committee and National Ocean Policy Ethics June 26: Outside witnesses Study (Acting Chmn Kerry, D-Mass) will hold 224-2981 hearings on the National Oceanic and Atmo- spheric Administration (NOAA). DURENBERGER ETHICS PROBE FY91 INTERIOR APPROPS 9:30am SR-253 Russell Bldg June 12 & 14 Senate Select Ethics Committee (Chmn Subcommittee Hearings Agenda: Interior Subcommittee (Chmn Byrd, D- June 12: NOAA satellite programs Heflin, D-Ala) will hold a series of open hear- June 14: NOAA ocean and coastal programs ings on the investigation concerning Sen. Dave WVa) of Senate Appropriations Committee Durenberger, R-Minn. will hold hearings on fiscal 1991 appropria- 9:30am SH-216 Hart Bldg June 12 & addl tions for programs under its jurisdiction. dates TBA Time TBA S-128 Capitol Bldg Date TBA Agenda: Interior secy; Energy secy; Agriculture DIGITAL RECORDERS secy (tentative); congressional witnesses Communications Subcommittee (Chmn In- ouye, D-Hawaii) of Senate Commerce, Science Finance and Transportation Committee will hold hear- ings on digital recorders. Armed Services 224-4515 9:30am SR-253 Russell Bldg June 13 & 20 Agenda: 224-3871 IMPROVING HEALTH-CARE ACCESS June 13: S 2358 Digital Audio Tape Recorder Act B-2 STEALTH BOMBER Field Hearing of 1990 Strategic Forces and Nuclear Deterrence June 20: S 1974 - Require new televisions to have Health for Families and the Uninsured Subcommittee (Chmn Exon, D-Neb) of Senate built-in decoder circuitry Subcommittee (Chmn Riegle, D-Mich) of Sen- New listing Revised listing Page 6 Congressional Monitor Friday, May 25, 1990 Senate continued. CHILDREN'S PROTECTION/ held a district judge's order to force the SUBSTANCE ABUSE municipal government of Kansas City to raise ate Finance Committee will hold a field hear- Senate Select Indian Affairs Committee property taxes to help finance a school-deseg- ing on problems faced by children who do not (Chmn Inouye, D-Hawaii) will hold a hearing regation plan. have health insurance. on legislation (S 2340) on children's protective 10am SD-226 Dirksen Bldg June 19 2pm Prudden Hall, Lansing Civic Arena, services and alcohol and substance abuse, and 505 West Allegan, Lansing, Mich May 30 Trust Counsel proposals. 9:30am SR-485 Russell Bldg June 7 SPORTS LOTTERIES Patents, Copyrights and Trademarks Sub- TEXTILE & FOOTWEAR IMPORTS committee (Chmn DeConcini, D-Ariz) of Sen- Senate Finance Committee (Chmn Bent- INDIAN HEALTH SERVICE ate Judiciary Committee will hold a hearing on sen, D-Texas) will hold a hearing on legislation NURSE SHORTAGE legislation (S 1772) to prohibit states and local (S 2411) to provide for orderly imports of Senate Select Indian Affairs Committee governments from establishing lotteries on textiles, apparel and footwear. (Chmn Inouye, D-Hawaii) will hold a hearing professional sports contests. 10am SD-215 Dirksen Bldg June 7 on the Indian Health Service nurse shortage. 2pm SD-226 Dirksen Bldg June 26 2pm SR-485 Russell Bldg June 14 TRADE WITH CHINA Senate Finance Committee (Chmn Bent- INDIAN TRUST COUNSEL Rules & sen, D-Texas) will hold a hearing on whether Senate Select Indian Affairs Committee Congress should approve the administration (Chmn Inouye, D-Hawaii) will hold a hearing Administration request to continued most-favored-nation sta- on legislation to establish in the Department tus for China. of the Interior a Trust Counsel for Indian 224-6352 Time & room TBA early June date TBA Assets. 2pm SR-485 Russell Bldg June 21 RULES LEGISLATION Full Committee Markup Senate Rules and Administration Commit- Foreign Relations INDIAN SUBSTANCE ABUSE tee (Chmn Ford, D-Ky) will meet to consider Senate Select Indian Affairs Committee pending draft legislation. 224-4651 (Chmn Inouye, D-Hawaii) will hold a hearing 9:30am SR-301 Russell Bldg June 13 U.S. & PERUVIAN MILITARY on legislation to reauthorize certain Indian Agenda: Western Hemisphere and Peace Corps Af- alcohol and substance abuse prevention and Draft legislation Authorize funds for fiscal 1991 fairs Subcommittee (Chmn Dodd, D-Conn) of treatment programs. for the Federal Election Commission Senate Foreign Relations Committee will hold 9:30am SR-485 Russell Bldg July 12 Draft legislation Provide for the management of Senate official mail a hearing on proposed U.S. military training Draft legislation Authorize the purchase of 1991 for Peru. calendars for the use of the Senate 11am S-116 Capitol Bldg June 13 FEDERAL ACKNOWLEDGMENT Note: This hearing was originally scheduled for PROCESS May 16. Senate Select Indian Affairs Committee (Chmn Inouye, D-Hawaii) will hold a hearing Veterans' Affairs on legislation (S 611 & S 912) to establish Governmental administrative procedures to determine the 224-9126 status of certain Indian groups. Time & room TBA Date TBA VA NOMINATIONS Affairs Senate Veterans' Affairs Committee (Chmn Cranston, D-Calif) will hold a con- 224-4751 firmation hearing on pending nominations. COMMERCE DEPT REORGANIZATION Judiciary 9:30am SR-418 Russell Bldg June 6 Senate Governmental Affairs Committee Agenda: (Chmn Glenn, D-Ohio) will hold a hearing on 224-5225 Donald Ivers assoc judge, Court of Veterans legislation (S 1978) to reorganize the Com- Appeals merce Department into an Industry and Tech- INFANT FORMULAS Jonathan Steinberg assoc judge, Court of Veter- Antitrust, Monopolies and Business Rights ans Appeals nology Department. 9:30am SD-342 Dirksen Bldg June 12 Subcommittee (Chmn Metzenbaum, D-Ohio) of Senate Judiciary Committee will hold a PROGRAM FRAUD ACT hearing on competitive pricing in the infant VETERANS' DISABILITIES PROGRAMS OVERSIGHT HEARING formula industry. Senate Veterans' Affairs Committee Oversight of Government Management 10am SD-226 Dirksen Bldg May 29 (Chmn Cranston, D-Calif) will hold a hearing Subcommittee (Chmn Levin, D-Mich) of Sen- on prosthetics and special disabilities ate Governmental Affairs Committee will hold programs. an oversight hearing on provisions of the Pro- JUDICIAL NOMINEES & 9:30am SR-418 Russell Bldg June 7 gram Fraud Civil Remedies Act that estab- DISCRIMINATORY CLUBS lished a streamlined, administrative process to Senate Judiciary Committee (Chmn Biden, handle cases of fraud against the government D-Del) will hold a hearing on the issue of VETERANS' COMPENSATION, that involve small amounts of money. judicial nominees who belong to private clubs HOUSING AND EDUCATION 9:30am SD-342 Dirksen Bldg June 21 that discriminate. Senate Veterans' Affairs Committee 9:30am SD-226 Dirksen Bldg June 7 (Chmn Cranston, D-Calif) will hold hearings Indian Affairs on pending legislation. 9:30am 334 Cannon Bldg June 14 224-2251 COURT-ORDERED TAXATION Agenda: Constitution Subcommittee (Chmn Simon, S 2100 - Increase the rates of compensation for HAWAIIAN HOMES D-III) of Senate Judiciary Committee will hold veterans with service-connected disabilities and Field Hearing a hearing on a resolution (S J Res 295) propos- the rates of dependency and indemnity com- Senate Select Indian Affairs Committee pensation for the survivors of certain disabled ing a constitutional amendment that would veterans; improve veterans' compensation, (Chmn Inouye, D-Hawaii) will hold a hearing prevent courts from ordering states and local- health-care, insurance, and housing programs; on amendments to the Hawaiian Homes Com- ities to impose or increase taxes. The resolu- and provide for transitional group residences for mission Act. tion is in response to the recent Supreme veterans recovering from substance-abuse dis- Time TBA Honolulu, Hawaii May 30, 31 Court ruling in Missouri v. Jenkins that up- abilities New listing Revised listing F Friday, May 25, 1990 Congressional Monitor Page 7 Senate continued. firmation hearing on pending nominations. 9:30am SR-418 Russell Bldg June 19 BUDGETTALKS Agenda: S 1860 Require the secretary of Veterans Affairs James Holsinger Jr - to be chief medical dir, Representatives from the White House to furnish outpatient medical services for any Veterans Affs Dept and members of the congressional leader- disability of a former prisoner of war S 2455 Provide for recovery by the US of the cost Stephen Trodden - to be inspector gen, Veterans ship will continue discussions on the bud- of medical care and services furnished for a non- Affs Dept get. service-connected disability Time & room TBA closed week of S 2456 Extend expiring laws authorizing the June 4 Department of Veterans Affairs to contract for needed care and revise VA authority to furnish outpatient dental care S -- Revise compensation payments to physicians and dentists VETERANS' AFFAIRS MARKUP Senate Veterans' Affairs Committee VA NOMINATIONS (Chmn Cranston, D-Calif) will mark up pend- Senate Veterans' Affairs Committee ing legislation. (Chmn Cranston, D-Calif) will hold a con- 9:30am SR-418 Russell Bldg June 28 House Committees Future Listings on reauthorization of farm programs. SILVERADO SAVINGS & LOAN Aging Time TBA 1300 Longworth Bldg dates House Banking, Finance and Urban Affairs TBA Committee (Chmn Gonzalez, D-Texas) will continue hearings on the failure of Denver- OLDER AMERICANS ACT OVERSIGHT based Silverado Savings and Loan. Human Services Subcommittee (Chmn 10am 2128 Rayburn Bldg dates TBA Downey, D-NY) of House Select Aging Com- Armed Services mittee will hold an oversight hearing on the implementation of the Older Americans Act, 225-4151 focusing on provisions dealing with partner- SPECIAL ACCESS PROGRAMS Education & ships between government agencies and pri- Joint Hearing vate companies. Procurement and Military Nuclear Sys- 9:30am Room TBA June 5 tems Subcommittee (Chmn Aspin, D-Wis) and Labor Research and Development Subcommittee 225-4527 (Chmn Dellums, D-Calif) of House Armed OLDER AMERICANS ACT OVERSIGHT Services Committee will continue joint hear- JOB TRAINING ACT Field Hearing ings on the fiscal 1991 defense authorization House Education and Labor Committee Human Services Subcommittee (Chmn request, focusing on special access programs, (Chmn Hawkins, D-Calif) will hold a hearing Downey, D-NY) of House Select Aging Com- commonly know as black budget programs. on legislation (HR 2039) to amend the Job mittee will hold an oversight field hearing on Such programs cover secret activities whose Training Partnership Act to improve the de- implementation of the Older Americans Act, funding is camouflaged or otherwise hidden livery of services to hard-to-serve adults and focusing on provisions dealing with health within the defense budget request. to youth. education for the elderly. Time and room TBA Date TBA Time and room TBA June 6 9:30am Rochester, N.Y. June 11 Note: This hearing was originally scheduled for May 16. Agriculture CONSTRUCTION SAFETY Banking, Finance Health and Safety Subcommittee (Chmn 225-2171 Gaydos, D-Pa) of House Education and Labor & Urban Affairs Committee will hold hearings on legislation ANIMAL FACILITY (HR 4652) to improve inspections, investiga- PROTECTION ACT 225-4247 tion, reporting and recordkeeping in the con- Hearing and Markup struction industry; to require certain construc- Department Operations, Research and For- HOUSING BILL MARKUP tion contractors to establish construction eign Agriculture Subcommittee (Chmn Brown, House Banking, Finance and Urban Affairs safety and health programs and to appoint D-Calif) of House Agriculture Committee will Committee (Chmn Gonzalez, D-Texas) will construction safety specialists. hold a hearing on and mark up legislation (HR continue marking up legislation (HR 1180) to Time and room TBA June 12 3270 Farm Animal and Research Facilities amend and extend certain laws relating to Protection Act) to make it a federal offense to housing, community and neighborhood devel- damage an animal research facility. opment and preservation and related 9:30am 1302 Longworth Bldg June 14 programs. CONSTRUCTION SAFETY Note: This hearing and markup was originally 10am 2128 Rayburn Bldg June 6 & 7 Subcommittee Markup scheduled for May 15. Health and Safety Subcommittee (Chmn Gaydos, D-Pa) of House Education and Labor FAIR CREDIT REPORTING ACT Committee will mark up legislation (HR 4652) 1990 FARM BILL Consumer Affairs and Coinage Sub- to improve inspections, investigation, report- Full Committee Markup committee (Chmn Lehman, D-Calif) of House ing and recordkeeping in the construction in- House Agriculture Committee (Chmn de la Banking, Finance and Urban Affairs Commit- dustry; to require certain construction con- Garza, D-Texas) will continue to mark up the tee will hold a hearing on legislation (HR 3740, tractors to establish construction safety and 1990 farm bill (HR 3950 - Food and Agricul- HR 4122 & HR 4213) to revise the Fair Credit health programs and to appoint construction tural Resources Act of 1990). HR 3950 will Reporting Act. safety specialists. serve as a vehicle for the panel's deliberations 10am 2128 Rayburn Bldg June 12 Time & room TBA June 21 New listing Revised listing Page 8 Congressional Monitor Friday, May 25, 1990 House continued. Foreign Affairs will hold a hearing to receive a GAO report entitled "Water Subsidies: Basic Changes DISPLACED HOMEMAKERS MARKUP 225-5021 Needed to Avoid Abuse of the 960-Acre Employment Opportunities Subcommittee FOOD FOR PEACE Limit." (Chmn Martinez, D-Calif) of House Education Subcommittee Markup Time & Room TBA Date TBA and Labor Committee will mark up legislation International Economic Policy and Trade (HR 3069 - Displaced Homemakers Employ- Subcommittee (Chmn Gejdenson, D-Conn) of ment & Family Self Sufficiency Act) to estab- House Foreign Affairs Committee will mark CALIFORNIA DROUGHT lish an employment training program for dis- up legislation to reauthorize PL 480 (Food for Water, Power and Offshore Energy Re- placed homemakers. Peace) and other argicultural trade programs. sources Subcommittee (Chmn Miller, D-Calif) Time & room TBA Date TBA 1:30pm 2255 Rayburn Bldg June 5 of House Interior and Insular Affairs Commit- tee will hold a hearing on the drought in California. REFUGEES IN ASIA Time TBA San Francisco Date TBA Energy & Asian and Pacific Affairs Subcommittee (Chmn Solarz, D-NY) of House Foreign Af- Commerce fairs Committee will hold a hearing on refu- gees in Asia. Merchant Marine 225-2927 Time & room TBA Date TBA TOURISM GROWTH Witnesses scheduled: Princeton Lyman dir, bu- & Fisheries Transportation and Hazardous Materials reau for refugee prgms, State Dept; David Lambertson dpty asst secy of State for East 225-4047 Subcommittee (Chmn Luken, D-Ohio) of Asian & Pacific affs; Lionel Rosenblatt exec dir, CRUISE SHIP SAFETY House Energy and Commerce Committee will Refugees Internatl; Dawn Calabia assoc dir, Ofc Merchant Marine Subcommittee (Chmn hold a hearing on legislation (HR 4369, S of Migration & Refugee Services, US Catholic Jones, D-NC) of House Merchant Marine and 1791) to assist in the growth of international Conference; Court Robinson policy analyst, US Fisheries Committee will hold a hearing on travel and tourism in the United States. Cmte for Refugees 9:30am Room TBA June 13 Note: This hearing was originally scheduled for cruise ship safety. May 22. Note: This is a continuation of an April 19 hearing. 10am 1334 Longworth Bldg June 6 OCTANE LABELING Energy and Power Subcommittee (Chmn DEMOCRATIC REFORMS & Sharp, D-Ind) of House Energy and Com- SOVIET HUMAN RIGHTS merce Committee will hold a hearing on misla- Human Rights and International Organiza- COAST GUARD beling of octane levels. tions Subcommittee (Chmn Yatron, D-Pa) of NEW COMMANDANT 10am Room TBA June 20 House Foreign Affairs Committee will con- Coast Guard and Navigation Subcommit- tinue hearings on the pace of democratic re- tee (Chmn Tauzin, D-La) of House Merchant forms and status of human rights in the Soviet Marine and Fisheries Committee will hold a LAWRENCE LIVERMORE LAB Union. hearing to introduce J William Kime, who will Time & room TBA Date TBA become the new commandant of the Coast Oversight and Investigations Subcommit- Guard on June 1. tee (Chmn Dingell, D-Mich) of House Energy Witnesses scheduled: Rep. Smith. D-Fla; Sen DeConcini, D-Ariz; Richard Schifter asst secy 2pm 1334 Longworth Bldg June 7 and Commerce Committee will hold a hearing of State for human rights and humanitarian affs; on the adequacy of controls to protect govern- European & Canadian affs burea rep TBA ment property and other interests at the Law- Note: This hearing was originally scheduled for MARINE SANCTUARIES rence Livermore National Laboratory. May 22. Oversight and Investigations Subcommit- Time & Room TBA Date TBA tee (Chmn Foglietta, D-Pa) of House Mer- chant Marine and Fisheries Committee will ADDITIONAL FREQUENCIES Government hold a hearing on the National Marine Sanctu- ary Program. Subcommittee Markup 9:30am 1334 Longworth Bldg June 7 Telecommunications and Finance Sub- Operations committee (Chmn Markey, D-Mass) of House Energy and Commerce Committee will mark 225-5051 LONG ISLAND SOUND up legislation (HR 2965), the Emergency Tele- DC HOMELESS PROGRAMS communications Technologies Act. Human Resources and Intergovernmental ENVIRONMENTAL QUALITY Time & Room TBA Date TBA Relations Subcommittee (Chmn Weiss, D-NY) Field Hearing Fisheries and Wildlife Conservation and of House Government Operations Committee the Environment Subcommittee (Chmn will hold a hearing on mismanagement in Studds, D-Mass) of House Merchant Marine STATE ENERGY programs for the homeless in Washington, and Fisheries Committee will hold a field CONSERVATION PROGRAMS MARKUP D.C. 9:30am 2247 Rayburn Bldg June 12 hearing on the environmental integrity of the House Energy and Commerce Committee Energy and Power Subcommittee (Chmn Witnesses scheduled: Otis Troupe city auditor, Long Island Sound. Washington, DC; Cornelius Pitts, Tony Russo, 10am Rye, N.Y.June 11 Sharp, D-Ind) will mark up legislation (HR 711) to amend the Energy Policy and Con- Ann Ryan, Roy Littlejohn, Earnest Green & James Griffin homeless shelter providers, servation Act to increase the efficiency and MARINE BILLS Washington, DC; Carol Thompson city adminr, effectiveness of state energy conservation Subcommittee Markup Washington, DC Oceanography and Great Lakes Sub- programs. Time & Room TBA Date TBA committee (Chmn Hertel, D-Mich) and Fish- eries and Wildlife Conservation and the Envi- Interior & ronment Subcommittee (Chmn Studds, D- PESTICIDE RESIDUES IN FOOD Mass) of House Merchant Marine and Subcommittee Markup Insular Affairs Fisheries Committee will mark up pending Health and the Environment Subcommit- legislation. tee (Chmn Waxman, D-Calif) of House Energy 225-2761 11am 1334 Longworth Bldg June 13 and Commerce Committee will mark up legis- Agenda: WATER SUBSIDIES HR 2840 Coastal Barrier Improvement Act of lation (HR 1725 Food Safety Amendments) House Interior Committee 1989 to regulate pesticide chemical residues in food. Water, Power and Offshore Energy Re- HR 3719 to establish the Florida Keys National Time & room TBA date TBA sources Subcommittee (Chmn Miller, D-Calif) Marine Sanctuary New listing Revised listing Friday, May 25, 1990 Congressional Monitor Page 9 House continued. ADDL CHICAGO AIRPORT Small Business Field Hearing Aviation Subcommittee (Chmn Oberstar, 225-5821 PIPELINE SAFETY D-Minn) of House Public Works and Trans- Subcommittee Markup Coast Guard and Navigation Subcommit- portation Committee will hold a field hearing CREDIT CRUNCH tee (Chmn Tauzin, D-La) of House Merchant to review potential sites for a third Chicago- House Small Business Committee (Chmn Marine and Fisheries Committee will mark up area airport. LaFalce, D-NY) will hold a hearing on the pipeline draft safety legislation (HR -) 6:30pm Calumet City, Ill., June 11 problems borrowers are experiencing securing 10am 1334 Longworth Bldg June 14 commercial financing. 10:30am 2359A Rayburn Bldg June 6 FAA SAFETY ENFORCEMENT/ Witnesses scheduled: L. William Seidman - chmn, RECERTIFICATION PRGMS Federal Deposit Insurance Corporation; Robert ZEBRA MUSSELS Oceanography and Great Lakes Sub- Investigations and Oversight Subcommit- Clarke comptroller, Office of the Comptroller of committee (Chmn Hertel, D-Mich) of House tee (Chmn Anderson, D-Calif) of House Public the Currency; John LaWare - gov, Fed Reserve Merchant Marine and Fisheries Committee Works and Transportation Committee will Bd of Govs will hold a hearing on zebra mussels. hold hearings on the Federal Aviation Admin- 2pm 1334 Longworth Bldg June 14 istration's safety enforcement programs and the recertification of carriers that have had operating certificates revoked. 10am 2167 Rayburn Bldg June 12 & 13 LENDER LIABILITY DELAWARE RIVER PORTS House Small Business Committee (Chmn Field Hearing LaFalce, D-NY) will hold a hearing on legisla- Oversight and Investigations Subcommit- tion (HR 4494) to limit the liability under that tee (Chmn Foglietta, D-Pa) of House Mer- chant Marine and Fisheries Committee will Science, Space & act of lending institutions acquiring facilities through foreclosure or similar means and cor- hold a field hearing on the governance and management of Delaware River ports. Technology porate fiduciaries administering estates or trusts. Time TBA Philadelphia, Pa Date TBA 225-6371 10am 2359A Rayburn Bldg June 7 HIGH-SPEED RAIL SHIPBUILDING TECHNOLOGY MAGNETIC TECHNOLOGY Joint Hearing Transportation, Aviation and Materials Oversight and Investigations Subcommit- Subcommittee (Chmn Torricelli, D-NJ) of tee (Chmn Foglietta, D-Pa) and Merchant Marine Subcommittee (Chmn Jones, D-NC) of House Science, Space and Technology Com- Veterans' Affairs House Merchant Marine and Fisheries Com- mittee will hold a hearing on magnetic levita- 225-3527 mittee will hold a joint hearing on the state of tion technology. 10:30am 2325 Rayburn Bldg June 7 U.S. and foreign shipbuilding technology. VA LEGISLATION MARKUP Time & room TBA date TBA Compensation Subcommittee Compensation, Pension and Insurance Subcommittee (Chmn Applegate, D-Ohio) of FAA TRAINING PROGRAMS House Veterans' Affairs Committee will mark Post Office & Transportation, Aviation and Materials up legislation (HR 4418) to revise the rates of Subcommittee (Chmn Torricelli, D-NJ) of disability compensation for veterans with ser- Civil Service House Science, Space and Technology Com- vice-connected disabilities and the rates of mittee will hold a hearing on the Federal dependency and indemnity compensation for 225-4054 Aviation Administration's training programs. survivors of such vèterans, to make certain 9:30am 2325 Rayburn Bldg June 14 improvements in veterans' compensation and FED EMPLOYEES & pension programs, and for other purposes. CONTRACTING OUT 9am 334 Cannon Bldg June 6 Subcommittee Markup Human Resources Subcommittee (Chmn CRITICAL MATERIALS COUNCIL Kanjorski, D-Pa) of House Post Office and Transportation, Aviation and Materials Civil Service Committee will mark up legisla- Subcommittee (Chmn Torricelli, D-NJ) of tion (HR 4049) to establish procedures neces- House Science, Space and Technology Com- sary to protect federal employees from certain mittee will hold an oversight hearing on the Ways & Means adverse personnel actions which may result by National Critical Materials Council. 225-3625 the contracting out of agency functions or 2pm 2325 Rayburn Bldg June 26 activities U.S.-MEXICO RELATIONS 10:30am 304 Cannon Bldg June 6 Trade Subcommittee (Chmn Gibbons, D- Fla) of House Ways and Means Committee TILT-ROTOR TECHNOLOGY will hold a hearing on economic relations be- Transportation, Aviation and Materials tween the United States and Mexico. Public Works Subcommittee (Chmn Torricelli, D-NJ) of 9:30am 1100 Longworth Bldg June 14 House Science, Space and Technology Com- & Transportation mittee will hold a hearing on tilt-rotor technology. 225-4472 9:30am 2325 Rayburn Bldg June 28 FAA TRAINING PRGMS Investigations and Oversight Subcommit- tee (Chmn Anderson, D-Calif) of House Public Note COMPUTER SECURITY Works and Transportation Committee will Transportation, Aviation and Materials hold a hearing on the Federal Aviation Admin- Subcommittee (Chmn Torricelli, D-NJ) of The offices of all members of Congress istration's training programs for air traffic House Science, Space and Technology Com- and all congressional committees and sub- controllers, maintenance workers and safety mittee will hold an oversight hearing on the committees may be reached by calling inspectors (202) 224-3121. Computer Act of 1987. 10am 2167 Rayburn Bldg June 6 1:30pm 2318 Rayburn Bldg July 10 New listing Revised listing Page 10 Congressional Monitor Friday, May 25, 1990 Conference Committees Future Listings CLEAN AIR TRADE ISSUES ation of Title I (except section 125) of the Senate Conferees will meet on legislation (S 1630) Conferees will meet on legislation (HR amendment, and modifications committed to 1594) to revise and extend the Caribbean Basin conference: Rostenkowski, Downey & Archer to amend the Clean Air Act to provide for attainment and maintenance of health protec- Initiative and extend most-favored-nation sta- From the Ways & Means Committee, for consider- ation of Title III of the Senate amendment, and tive national ambient air quality standards. tus to Hungary. modifications committed to conference: Rosten- Time & room TBA date TBA Time & room TBA date TBA kowski, Jacobs, & Brown of Colo House conferees: S 1630 reported by Senate Environment From the Energy & Commerce Committee, for From the Ways & Means Committee, for consider- and Public Works Committee Dec 20, 1989 (S consideration of section 124 of the Senate amend- ation of the House amendment to the Senate ment, and modifications committed to confer- Rpt 101-228) amendment, and the Senate amendment, and ence: Dingell, Walgren & Lent S 1630 passed Senate April 3, 1990 modifications committed to conference: Rosten- HR 3 reported by House Education and HR 3030 reported by House Energy and kowski, Gibbons, Jenkins, Downey, Pease, Russo, Commerce Committee May 17 (H Prt 101-490, Guarini, Archer, Vander Jagt, Crane & Frenzel Labor Committee July 27, 1989 (H Rpt 101- pt I) As additional conferees, solely for the consideration 190, pt I) of Title II of the House amendment to the Senate HR 3 reported by House Ways and Means HR 3030 reported by House Ways and amendment, and for Title II of the Senate amend- Committee Sept 12, 1989 (H Rpt 101-190, pt Means Committee May 21 (H Rpt 101-490, pt ment, and modifications committed to confer- II) II) ence: Pickle & Schulze HR 3 passed House March 29, 1990 HR 3030 reportd by House Public Works From the Agriculture Committee, for consideration S 5 reported by Senate Labor and Human Committee May 21 (H Rpt 101-490, pt III) of Titles VI and VII of the Senate amendment, Resources Committee April 12, 1989 S 1630 passed House May 23 (House voted and the Senate amendment, and modifications S5 passed Senate June 23, 1989 to amend S 1630 to contain the text of HR 3030 committed to conference: de la Garza, Volkmer, Brown of Calif, Olin, Stallings, Morrison of Wash, HR 3 passed Senate April 24, 1990 (Senate as amended by the House) Bob Smith & Herger amended HR 3 to contain the text of S 5 as From the Interior Committee, for consideration of previously passed by the Senate) Titles VI and VII of the Senate amendment, and Senate insisted on its amendment, re- modifications committed to conference: Udall, quested a conference and named conferees CHEMICAL WEAPONS Vento, Williams, DeFazio, McDermott, Young of April 24 Conferees will meet on legislation (HR Alaska, Craig & Denny Smith House agreed to a conference and named From the Foreign Affairs Committee, for consider- 3033) to control the export to countries pursu- ation of Titles VI and VII of the Senate amend- conferees May 9 ing or expanding the ability to produce or ment, and modifications committed to confer- deliver chemical or biological weapons of items ence: Fascell, Wolpe, Gejdenson, Kostmayer, that would assist such countries in acquiring Feighan, Broomfield, Roth & Miller of Wash VOCATIONAL EDUCATION such ability, to impose sanctions against com- Senate conferees: Bentsen, Moynihan, Baucus, Conferees will meet on legislation to re- panies that have aided in the proliferation of Packwood, Dole authorize vocational education programs (HR chemical or biological weapons and to provide HR 1594 reported by House Ways and Means 7). for sanctions against countries that use or Committee June 21, 1989 (H Rpt 101-99) Time & room TBA date TBA prepare to use chemical or biological weapons HR 1594 passed House June 27, 1989 Senate conferees: Kennedy, Pell, Metzenbaum, in violation of internatational law HR 1594 reported by Senate Finance Com- Dodd, Simon, Mikulski, Hatch, Kassebaum, Cochran, Jeffords, Thurmond Time & room TBA date TBA mittee March 22, 1990 Senate Conferees: TBA HR 1594 passed Senate, amended, April House conferees: Hawkins, Ford of Mich, Miller of Calif, Kildee, Williams, Martinez, Perkins, Hayes House Conferees: TBA 24, 1990 of Ill, Sawyer, Owens of NY, Payne of NJ, Lowey HR 3033 reported by House Foreign Affairs House agreed to Senate amendment with of NY, Poshard, Unsoeld, Rahall, Goodling, Committee Nov 7, 1989 (H Rpt 101-334 pt I) an amendment, insisted on its amendment Fawell, Grandy, Smith of Vt, Bartlett, HR 3033 reported by House Ways & Means and requested a conference May 9 Gunderson, Petri, Roukema, Coleman of Mo Committee Nov 8, 1989 (H Rpt 101-334, pt II) Senate agreed to a conference and named HR 7 reported by House Education and HR 3033 passed the House Nov 13, 1989 conferees May 14 Labor Committee April 28, 1989 (H Rpt 101- S 195 reported by Senate Foreign Relations 41) Oct 17, 1989 (S Rpt 101-166) HR 7 passed House May 9, 1989 HR 3033 passed the Senate May 17 (Sen- CHILD CARE S 1109 reported by Senate Labor and ate amended HR 3033 to contain text of S 195) Conferees will meet on legislation to extend Human Resources Committee Nov 21, 1989 (S Senate insisted on its amendments and Head Start programs and programs under Rpt 101-221) requested a conference May 17 Elementary and Secondary Education Act to HR 7 passed Senate April 5, 1990 (Senate include child-care services (HR 3) amended HR 7 to contain text of S 1109) Time & room TBA Date TBA Senate insisted on its amendments, re- Senate conferees: quested a conference and named conferees From the Labor and Human Resources Committee: HATCH ACT REVISION April Kennedy, Dodd, Pell, Harkin, Adams, Mikulski, Conferees will meet on legislation (HR 20) House agreed to a conference and named Hatch, Kassebaum, Jeffords & Coats to revise the Hatch Act. From the Finance Committee: Bentsen, Moynihan, conferees May 9 Time & room TBA date TBA Baucus, Mitchell, Packwood, Dole & Roth Senate conferees: Glenn, Levin, Pryor, Kohl, House conferees: NASA AUTHORIZATION Lieberman, Roth, Stevens & Rudman From the Education & Labor Committee, for con- Conferees will meet on legislation to re- House conferees: TBA sideration of the House bill (except Titles III and authorize the National Aeronautics and Space HR 20 reported by House Post Office and VI), and the Senate amendment (except Titles II Administration (NASA) (HR 3729). Civil Service Committee April 13, 1989 (H Rpt and III), and modifications committed to confer- Time & room TBA date TBA 101-27) ence: Hawkins, Ford of Mich, Clay, Miller of House conferees: Roe, Nelson of Fla, Valentine, Calif, Kildee, Williams, Martinez, Owens of NY, HR 20 passed House April 17, 1989 Brown of Calif, Lloyd, Glickman, Volkmer, Mi- Hayes of III, Perkins, Sawyer, Payne of NJ, Lowey S 135 reported by Senate Governmental neta, Torricelli, Nagle, Walker, Sensenbrenner, of NY, Unsoeld, Washington, Jontz, Goodling, Lewis of Fla, Buechner, Packard, Slaughter of Va Affairs Committee Oct 17, 1989 (S Rpt 101- Petri, Gunderson, Bartlett, Tauke, Henry, & Rohrabacher 165) Grandy, Ballenger & Fawell Senate conferees: TBA S 135 passed Senate May 10, 1990 (Senate From the Ways & Means Committee, for consider- HR 3729 passed House Nov 20, 1989 then took up HR 20 and amended it to contain ation of Titles III and VI of the House bill and the text of 135) Title II of the Senate amendment, and modifica- HR 3729 passed Senate, amended, Nov 22, Senate insisted on its amendments, re- tions committed to conference: Rostenkowski, 1989 Downey, Ford of Tenn, Pease, Matsui, Kennelly, House disagreed to the Senate amend- quested a conference and named conferees Andrews, Archer, Vander Jagt, Crane & Shaw ment, requested a conference and named con- May 10 From the Ways & Means Committee, for consider- ferees Feb 28, 1990 New listing Revised listing Friday, May 25, 1990 Congressional Monitor Page 11 Conference continued. land control programs. HR 1465 reported by House Public Works Time & room TBA date TBA OIL-SPILL COMPENSATION Committee Sept 18, 1989 (H Rpt 101-242, pt I) Senate conferees: Kennedy, Dodd, Pell, Hollings, Conferees will meet on legislation (HR HR 1465 reported by House Merchant Inouye, Biden, Sarbanes, Hatch, Coats, Danforth, 1465) to establish limits on liability for dam- Marine Committee Sept 18, 1989 (H Rpt 101- Wilson, Helms, Gramm ages resulting from oil pollution and to estab- 242, pt II) House conferees: lish a fund to pay compensation for such HR 1465 reported by House Science Com- For HR 3630: Dingell, Waxman, Scheuer, Lent, mittee Sept 20, 1989 (H Rpt 101-242, pt III) Madigan damages. For HR 3550 from the Judiciary Committee: Time & room TBA addl dates TBA Supplemental report filed by House Public Hughes, Mazzoli, Feighan, McCollum, Gekas Senate conferees: From Environment and Public Works Committee Oct 3, 1989 (H Rpt 101-242, For HR 3550 for the Energy & Commerce Commit- Works Committee: Burdick, Moynihan, Mitchell, pt IV) tee: Dingell, Waxman, Lent Baucus, Lautenberg, Breaux, Chafee, Durenber- Supplemental report filed by House Mer- S 1735 passed Senate Oct 5, 1989 ger, Warner, Jeffords, Humphrey chant Marine Committee Oct 4, 1989 (H Rpt HR 3614, HR 3630, HR 3550, HR 3611 From Commerce, Science and Transportation Com- 101-242, pt V) passed House Nov 13, 1989 mittee: Hollings, Inouye, Kerry, Breaux, Dan- HR 1465 passed House, amended, Nov 9, By unanimous consent the Senate agreed forth, Packwood, Stevens 1989 House conferees: that when the House bills were received by the From the Merchant Marine Committee, for consid- S 686 reported by Senate Environment Senate, all after the enacting clause was eration of the House bill (except Title VIII), and Committee July 28, 1989 (S Rpt 101-94) stricken, the text of S 1735 was substituted, the Senate amendment (except sections 601 and S 686 passed Senate Aug 4, 1989 the bills were deemed as passed and the 602), and modifications.committed to conference: Senate amended HR 1465 to contain the Senate insisted on its amendments and re- Jones of NC, Studds, Tauzin, Carper, Hughes, text of S 686 Nov 19, 1989 quested a conference. Davis, Young of Alaska, Lent (Shumway is ap- Senate insisted on its amendments and HR 3614 and HR 3611 passed the House pointed in place of Young of Alaska for consider- ation of Title I and section 2004 of the House bill requested a conference Nov 19, 1989 and Senate Nov 21 and Title I and section 405 of the Senate amend- House agreed to a conference Feb 7, 1990 HR 3611 signed by the president Dec 13 ment From the Public Works Committee, for (PL 101-231) consideration of the House bill (except Title DRUG PROGRAMS AUTHORIZATION HR 3614 signed by the president Dec 12 VIII), and the Senate amendment (except sec- Conferees will meet on legislation (S (PL 101-226) tions 601 and 602), and modifications committed 1735/HR 3630, HR 3550) to authorize drug HR 3630 and HR 3550 remain in conference to conference: Anderson, Roe, Mineta, Oberstar, Nowak, Hammerschmidt, Shuster, Stangeland (Kolter is appointed in place of Anderson for consideration of section 4114 of the House bill; Rahall is appointed in place of Roe for consider- Other Events ation of Title VII of the House bill, and sections 205, 309, 354, and 356 of the Senate amendment; Laughlin is appointed in place of Roe for consid- eration of sections 1002 and 1004 of the House bill, and corresponding sections of section 102 of The Monitor has received notice of the and police pension and fringe benefits issues. the Senate amendment; Borski is represented in following events scheduled to take place in Quality Hotel Capitol Hill, 415 New Jersey place of Roe for consideration of sections 4101 Washington. Associations, non-profit organiza- Ave NW June 2, 3, 4, 5 & 6 through 4205 of the House bill, and corresponding tions and public interest groups who wish to Contact: Nora Glushakow 223-6515 portions of the Senate amendment; and, Upton is have events listed in the section should send. Note: There is a $125 charge for this event. appointed in place of Shuster for consideration of section-4203 of the House bill and section 203 of pertinent information to: The Congressional the Senate amendment. Monitor, Other Events Editor, 1414 22nd St. From the Foreign Affairs Committee, for consider- N.W., Washington, D.C. 20037. Notices must ICBM & ARMS CONTROL ation of sections 603 and 604 of the House bill, include a telephone number. Notices may be Institute for Foreign Policy Analysis will and sections 603 and 604 of the Senate amend- transmitted by facsimile to 728-1862, attn: sponsor a series of breakfast meetings for ment, and modifications committed to confer- Robert Healy. Only events related to Congress members of Congress and congressional staff ence: Fascell, Yatron, Owens of Utah, Lantos, can be listed. Deadline is Noon. For further working on defense-related issues. The sessions Feighan, Broomfield, Bereuter, Miller of Wash information call (202) 887-8686. will focus on various aspects of ICBM modern- From the Science & Technology Committee, for ization and arms control. consideration of Title VII of the House bill, and 8am to 9am Capitol Hill Club June 5 & 7 sections 205, 309, 354, 356, and 506 of the Senate amendment, and modifications committed to U.S.-SOVIET RELATIONS & Contact: Peter Huessy at 463-7942 conference: Scheuer, Brown of Calif, Lloyd, Wal- ARMS CONTROL Agenda: gren, Walker, Schneider, Morrison of Wash Lawyers Alliance for Nuclear Arms Control June 5: Midgetman: Insuring Survival in a New From the Interior Committee, for consideration of Deterrent Framework Sen Cohen, R-Maine will hold a luncheon meeting to hear House Title I and section 2004 of the House bill, and June 7: The Twin Races to Disarm and Negotiate: Armed Services Committee Counselor Larry Title I and section 405 of the Senate amendment, What Path Toward Prudence and Enhanced Smith discuss "U.S.-Soviet Confidence Build- and modifications committed to conference: Strategic Stability? Sen Nunn, D-Ga Udall, Miller of Calif, Sharp, Young of Alaska, ing Measures - The View From Congress." Date TBA: The Emerging Strategic Framework Craig 12:15pm, Natl Lawyers Club, 1815 H St NW Rep Aspin, D-Wis From the Interior Committee, for consideration of May 29 NOTE: The meeting originally scheduled for June 6 Title VIII and section 2004 of the House bill, and Contact: Philip Fleming at 624-2755 has been moved forward to May 24 sections 601 and 602 of the Senate amendment, Note: There is a $13.50 charge for this event. For and modifications committed to conference: reservations call Phil Fleming at 624-2755. Udall, Miller of Calif, Sharp, Vento, DeFazio, MEDICAID DIRECTORS Young of Alaska, Marlenee, Craig State Medicaid Directors' Association and From the Energy & Commerce Committee, for CURBSIDE RECYCLING Health Care Financing Administration will co- consideration of sections 8103, 8201, and 8202 of the House bill, and section 601 of the Senate National Soft Drink Association will spon- sponsor a conference on issues affecting the amendment, and modifications committed to sor a briefing for members of Congress and administration of Medicaid programs. conference: Dingell, Hall of Texas, Lent. staff on curbside recycling programs. Omni Shoreham Hotel June 5 &6 From the Merchant Marine Committee, for consid- 2pm to 3:30pm 2261 Rayburn Bldg May 29 Contact: Gloria Price (HCFA 245-6257) or eration of Title VIII of the House bill and sections Contact: Barbara Hiden at 463-6740 Debbie Burt (American Public Welfare Assn 601 and 602 of the Senate amendment, and 682-0100) modifications committed to conference: Jones of NC, Tauzin, Carper, Davis, Fields POLICE LEGISLATIVE CONFERENCE SPACE STATION ISSUES From the Public Works Committee, for consider- ation of Title VIII of the House bill, and sections National Association of Police Organiza- Center for National Program Evaluation 601 and 602 of the Senate amendment, and tions will hold a legislative conference to dis- will sponsor a series of breakfast meetings to modifications committed to conference: Ander- cuss law enforcement issues currently before discuss the space station Freedom and related son, Mineta, Nowak, Hammerschmidt, Stange- Congress, including drug control, gun control, topics. New listing Revised listing Page 12 Congressional Monitor Friday, May 25, 1990 Other continued. Ramada Renaissance Techworld 999 Ninth 8:30am to 10am, Bell Communications, 2101 St NW June 11 & 12 L St NW June 15 8am 188 Russell Bldg June 6 Contact: Monica Gliva at 637-3126 Contact: Ann Hadley vom Eigen at 861-6977 Contact: Margaret Roberts at 391-6414 Note: There is a charge for this event of $15 for Note: This event is for members of Congress and members and $25 for non-members. staff only. UNDERSTANDING CONGRESS Congressional Quarterly will sponsor a sem- inar on "Understanding Congress." OPENING CONSTRUCTION EMPLOYEE BENEFITS 8:30am to 1pm, Quality Hotel Capitol Hill, MARKET IN JAPAN Manufacturers' Alliance for Productivity 415 New Jersey Ave NW June 12 Asian Studies Center of the Heritage Foun- and Innovation will sponsor a conference on Note: There is a charge of $195 for this event. For dation will sponsor a policy forum on the "New Trends in Employee Benefits." information and registration call Irene Cuffy at barriers facing American construction firms in Crystal City Marriott Hotel, Arlington, Va 887-8620. their efforts to gain access to the Japanese June7&8 market and the current state of negotiations Contact: Mary Louise Shaffer or Frank between the United States and Japan on the Holman at 331-8430 RESEARCH WORKSHOP subject. ON CONGRESS 9:30am to noon, Lehrman Aud of the Heri- Congressional Quarterly will sponsor a re- tage Foundation, 214 Mass Ave NE June 19 LONG-TERM HEALTH CARE search workshop on Congress. Contact: Daniell Doane at 546-4400 ext 381 American Health Care Association will hold 8:30am to 1pm, Congressional Quarterly, Participants: Sen Murkowski, R-Alaska keynote a conference to discuss long-term health-care 1414 22nd St NW June 13 PANEL: Roger Brooks dir, Asian Studies Ctr; issues. Note: There is a charge of $195 for this event. For Franco Eleuteri - dir, Asia Operations, The Aus- 8:30am to Noon Hyatt Regency Capitol Hill information and registration call Irene Cuffy at tin Co; Yasumasa Nagamine first secy, Embassy 887-8620. of Japan; Hajime Sako chmn, Japanese Fedn of June 11, 12 & 13 Construction Contractors; Maureen Smith dpty Contact: Norma Blankenship at 898-2836 asst secy of Commerce for Japan; Donn Smith - Agenda (partial): AMERICAN BUSINESS & vpres, Morrison-Knudsen Internatl June 12: Keynote speaker Gail Wilensky, adminr, Health GLOBAL ENVIRONMENT Care Financing Admin American Foreign Service Association will sponsor a conference on the global environ- CONGRESS & LEGISLATIVE PROCESS Legislative update Paul Willging Effective lobbying seminar - David Rehr, Natl ment to discuss business and governmental Congressional Quarterly will sponsor a sem- Fedn of Indpt Businesses collaboration on environmental issues. inar on "Congress and the Legislative Process." June 13: State Dept (23rd St entrance) June 14 8:30am to 4pm, Washington Marriott Hotel, Keynote speaker Sen Packwood, R-Ore; Rep Contact: Brian Hennessey (202) 338-4045 1221 22nd St NW June 20 Stark, D-Calif Agenda (partial): Note: There is a charge of $275 for this event Panel on long-term care Joseph Califano, former 9am: Carl Sagan scientist, Cornell Univ (includes lunch). For information and registration HEW secy; Judith Feder, Mary Harper, Margo 1pm: Luncheon address: Legislative Incentives to call Irene Cuffy at 887-8620. Vignola; George Will (moderator) Environmental Consciousness, Sen Wirth, D- Note: There is a $250 charge for this event. Colo FEDERAL REGULATORY PROCESS Congressional Quarterly will sponsor a sem- HUMAN RESOURCE ISSUES ENVIRONMENTAL LIABILITY inar on the federal regulatory process. National Association of Manufacturers will Women in Government Relations will spon- 8:30am to 4pm, Washington Marriott Hotel, sponsor a conference on human resources legis- sor a discussion on insurance of environmental 1221 22nd St NW June 21 lation currently pending in Congress, including liability. Legislative alternatives that may be Note: There is a charge of $295 for this event child care, civil and disability rights, pension included in a revision of the Resource Con- (includes lunch). For information and registration issues and parental leave. servation and Recovery Act will be discussed. call Irene Cuffy at 887-8620. New listing Revised listing Friday, May 25, 1990 Congressional Monitor Page 13 Status of Appropriations Week of May 21 FOREIGN OPERATIONS House: 225-2041; Senate: 224-7209 FULL COMMITTEE House subcmte hearings completed: April 4 House 225-2771; Senate 224-3471 INTERIOR FY90 SUPPLEMENTAL APPROPRIATIONS House: 225-3081; Senate: 224-7233 Bill No: HR 4404 House Full Cmte reported March 27 (HRpt 101-434) Senate cmte reported April 24 (SRpt 101-272) Passed House: LABOR/HHS/EDUC April 3 Passed Senate: May 1 House: 225-3508; Senate: 224-7283 Conferees appointed in House: May 4 House subcmte hearings completed: May 1 Conferees appointed in Senate: May 1 Senate subcmte hearings completed: March 29 Conf rpt filed: May 23 (HRpt101-493) LEGISLATIVE BRANCH AGRICULTURE House: 225-5338; Senate: 224-7338 House: 225-2638; Senate: 224-7240 House subcmte hearings completed: Feb 8 House subcmte hearings completed: March 30 Senate subcmte hearings completed: April 6 Senate subcmte hearings completed: April 4 MILITARY CONSTRUCTION COMMERCE, JUSTICE, STATE, House: 225-3047; Senate: 224-7255 & THE JUDICIARY House: 225-3351; Senate: 224-7277 House subcmte hearings completed: March 29 Senate subcmte hearings completed: April 2 House subcmte hearings completed: April 3 Senate subcmte hearings completed: May 2 TRANSPORTATION House: 225-2141; Senate: 224-7245 DEFENSE House: 225-2847; Senate: 224-7255 House subcmte hearings completed: April 26 Senate subcmte hearings completed: May 16 House subcmte hearings completed: May 8 DISTRICT OF COLUMBIA TREASURY/POSTAL SERVICE House: 225-5338; Senate: 224-7236 House: 225-5834; Senate: 224-6280 House subcmte hearings completed: April 4 ENERGY & WATER DEVELOPMENT House: 225-3421; Senate: 224-7260 VA, HUD & INDEPENDENT AGENCIES House subcmte hearings completed: April 4 House: 225-3241; Senate: 224-7211 Senate subcmte hearings completed: May 3 House subcmte hearings completed: May 3 Page 14 Congressional Monitor Friday, May 25, 1990 House Floor Action Week of May 21 HOYER. motion to strike all after the en- acting clause of the Senate companion measure, S 933, and insert in lieu thereof the provisions of the bill, HR 3030, as amended, agreed to by Monday, May 21: voice HR 4252 Authorize the secretary of the Air Force to S 933, as amended, passed by voice purchase certain property at Pease Air Force Subsequently, HR 2273 was laid on the Base, NH table. BENNETT substitute amendment, agreed S 286 Petroglyph National Monument Establish- to by voice ment Act HR 4252, as amended, passed by voice [continued from May 21] HR 3030 Provide for the attainment and maintenance S 286, as amended, passed by 415-0 (sus- of the national ambient air quality standards, pension of the rules - 2/3's vote required) (title the control of toxic air pollutants, the preven- amended) tion of acid deposition, and other improve- HR 4636 Authorize supplemental economic assistance ments in the quality of the nation's air began for fiscal 1990 to support democracy in Pan- general debate ama and Nicaragua, and for other purposes Under suspension of the rules Rule, H Res 395, agreed to by 305-108 S 286 Petroglyph Natl Monument Establishment FASCELL en bloc amendment to strike Act began consideration (debate conpleted, vote provisions which repealed the existing cap set- on final passage scheduled for Tuesday) ting most fiscal 1990 State Department and H Con Res 324Regarding Burmese Elections passed by voice USIA funds at fiscal 1989 levels or lower and H Res 393 Concerning the First Anniversary of the which removed the current law requirement Tianamen Square Massacre passed by voice that funds for the Board for International Broadcasting cannot be provided without prior authorization; provided that the $7.3 million Tuesday, May 22: authorized for the US pavilion at the World's Fair in Seville, Spain, also be spent for the US HR 2273 Establish a clear and comprehensive prohi- pavilion at the World's Fair in Genoa, Italy; bition of discrimination on the basis of dis- authorized $10 million in fiscal year 1991 funds ability for the creation of a North-South Center in [continued from May 17] Florida; provided the Defense Department with JUDICIARY COMMITTEE substitute the authority to finance the leasing of up to 11 amendment, as amended, agreed to by voice Huey helicopters to Bolivia and Peru for anti- LIPINSKI amendment to JUDICIARY narcotics purposes; and restored the administra- COMMITTEE substitute amendment to ex- tion's authority to transfer up to 10 percent of empt commuter rail services from the require- military aid to economic aid accounts, agreed to ment that all new rail cars purchased or leased by voice must be readily accessible to and usable by KOSTMAYER amendment to require that persons with disabilities if the commuter rail 50 percent of the aid for Panama be withheld service provided at least one car per train acces- until Panama signs an agreement with the US sible to those with disabilities within 5 years, providing for the sharing of records for investi- rejected by 100-290 gations into the laundering of drug-related SHUSTER amendment to JUDICIARY funds through financial institutions, agreed to COMMITTEE substitute amendment to ex- by voice empt fixed-route public transit systems in ur- DREIER of Calif amendment to add 3 banized areas with less than 200,000 from the additional items to the list of cooperative steps requirement that new vehicles be accessible to taken by the Endara government to control persons with disabilities, rejected by 148-266 money laundering in Panama: signing of a SENSENBRENNER amendment to JUDI- counter-narcotics agreement; establish legal re- CIARY COMMITTEE substitute amendment quirements for information for regulatory and to provide that the victims of job discrimination legal authorities; and signing of the United based on a disability would be entitled only to Nation Against Illicit Narcotics Trafficking, remedies currently available under title VII of agreed to by voice the Civil Rights Act of 1964, rather than any BROOMFIELD amendment to provide future expanded remedies, rejected by 192-227 substitute provisions on El Salvador that would (modified) permit the president to determine whether cer- DeLAY motion to recommit the bill to the tain specified actions by the Salvadoran govern- COMMITTEE on RULES with instructions to ment have occurred that warrant with holding report it back forthwith containing an amend- military aid, and would have provided funds and ment to provide that an employer could take programs for the military, the police, a Judicial- into consideration an individual's history of Democractization program, and national recon- drug addiction or alcoholism before assigning or ciliation, rejected by 175-243 continuing to asssign such individual to a safety MOAKLEY amendment to provide substi- sensitive position, and to extend the application tute provisions to those in the bill providing of the purposes of the Act in their entirety to additional conditions on FMLN and Salvadoran the executive and judicial branches of the fed- military attacks on civilians, requiring the Sal- eral government, rejected by 143-280 vadoran president to control military aid, au- HR 2273, as amended, passed by 403-20 thorizing election monitoring funds, and requir- 1 Friday, May 25, 1990 Congressional Monitor Page 15 House Floor continued. 180 DINGELL amendment to ENERGY COM- 1 MITTEE substitute amendment to provide that ing additional information for the presidential modified facilities would only be subject to new report to Congress, agreed to by 250-163 source Maximum Achievable Control Technol- HR 4636, as amended, rejected by 171-244 ogy (MACT) standards if the modification in- 0 S J Res 231 Designate the week of June 10, 1990, creases hazardous emissions by more than a de through June 16, 1990, as "State-Supported minimis amount of emissions of a pollutant that Homes for Veterans Week" passed by voice was not previously emitted from the facility; S J Res 231 is cleared for the president. and strikes language stating that MACT must be at least as stringent as the emission controls achieved in practice by the best controlled simi- lar source, and establishes instead a "floor" on Wednesday, May 23: MACT, requiring that it must be no less strin- HR 3030 Provide for the attainment and maintenance gent, and may be more stringent, than the of the national ambient air quality standards, average emission limitation achieved by a cer- the control of toxic air pollutants, the preven- tain number of the best-performing sources in tion of acid deposition, and other improve- the same industry, agreed to by voice ments in the quality of the nation's air DINGELL amendment to ENERGY-COM- [continued from May 21] MITTEE substitute amendment that requires Rule, H Res 399, agreed to by 317-105 complete elimination of the most destructive (modified) chemicals that destroy the ozone layer by mid- Earlier, the House agreed, by a 312-106 2000 and less destructive types of chemicals by vote, to order the previous question on consid- the beginning of 2020; but does not permit the eration of the rule. limited use of these substances for medical ENERGY COMMITTEE substitute purposes, aviation safety, and fire suppression, amendment, as amended, agreed to by voice agreed to by 416-0 DINGELL en bloc amendments to EN- DINGELL amendment to ENERGY COM- ERGY COMMITTEE substitute amendment to MITTEE substitute amendment that would re- provide compromise language regarding the pro- quire EPA to establish regulations to control air tection of air quality in national parks, the pollution from offshore oil and gas platforms on accidental release into the air of hazardous the Outer Continental Shelf located offshore of pollutants, reformulated gasoline standards, and the states along the Pacific and Atlantic Coasts transportation provisions submitted by the and the Gulf Coast off Florida, comparable to PUBLIC WORKS COMMITTEE, agreed to by those governing emission sources in correspond- voice ing onshore areas; expands the bill's require- ROE amendment to ENERGY COMMIT- ments for an EPA study on airborne toxic TEE substitute amendment that extends air effects on coastal waters; and requires the Inte- pollution research programs within the EPA SO rior Department to issue regulations to limit that the effects on air pollution and acid rain on emissions of air pollutants from OCS platforms human health and the environment will con- of California only, while requiring a similar tinue to be explored; and requires research to be study over 3 years on the impact of OCS emis- continued regarding the effect of alternative sions on ozone and nitrogen dioxide non-attain- fuels and pollution control technologies, agreed ment areas of the Gulf of Mexico, agreed to by to by voice (modified) 411-5 DYMALLY amendment to ENERGY DINGELL amendment to ENERGY COM- COMMITTEE substitute amendment to pro- MITTEE substitute amendment that modifies vide that the EPA administrator require that the clean fuel provisions in the bill, agreed to by not less than 10 percent of any research relating 405-15 to the requirements made by the Clean Air Act COOPER amendment to ENERGY COM- amendments be conducted by a disadvantaged MITTEE substitute amendment that directs business concern; and prohibits the use of eligi- the EPA to promulgate regulations requiring bility quotas, agreed to by voice (modified) monitoring and reporting of carbon dioxide ROSTENKOWSKI en bloc amendments to emissions of electric utility power plants subject ENERGY COMMITTEE substitute amend- to the acid rain provisions of the bill, agreed to ment to eliminate provisions requiring certain by voice fees and charges, rejected by 170-253 HR 3030, as amended, passed by 401-21 WISE amendment to ENERGY COMMIT- DINGELL motion to strike out all after the TEE substitute amendment that authorizes enacting clause of the Senate companion mea- $250 million for a "Clean Air Employment sure, S 1630, and insert in lieu thereof the Transition Assistance" program to be disbursed provisions of HR 3030 as passed by the House over a 5-year period, providing those workers S 1630, passed by voice (title amended) who become unemployed or suffer a reduction of DINGELL motion pursuant to the Rule to hours as a result of the provisions of the bill insist on the House amendments to S 1630 and with two years of retraining and up to six request a conference with the Senate, agreed to months of unemployment benefits, agreed to by by voice 274-146 Subsequently, HR 3030 was laid on the SIKORSKI amendment to ENERGY table. COMMITTEE substitute amendment that ex- S Con Res 133 Concurrent resolution providing for the use tends the 5-year/50,000 mile warranties on "ma- of the Capitol Rotunda agreed to by voice jor" auto emission control devices to 8- S Con Res 133 has now cleared both cham- year/80,000 mile warranties, agreed to by 239- bers. Page 16 Congressional Monitor Friday, May 25, 1990 House Floor continued. Thursday, May 24: HR 4404 CONFERENCE REPORT: Dire emergency supplemental appropriations for disaster as- sistance, food stamps, unemployment com- pensation administration, and other urgent needs, and transfers, and reducing funds bud- geted for military spending for the fiscal year ending September 30, 1990 began consider- ation Friday, May 25: The House hoped to complete action on the conference report to HR 4404, FY90 supplemental appropriations, and adjourn until Tuesday, June 5. If action on the conference report was not completed Thursday, the House may be in session today. Senate Floor Action Week of May 21 purposes passed by voice HR 644 Designate segments of the East Fork of Jemez and Pecos rivers in NM as compo- nents of the National Wild and Scenic Rivers Monday, May 21: System passed by voice S 1970 Omnibus crime legislation began consideration HR 644 is now cleared for the president. S Res 289 Direct the Senate Legal Counsel to appear as S 2088 Amend the Energy Policy and Conservation amicus curiae in the name of the Senate in Act to extend the authority for titles I and II, United States ex rel Rudd, et al General Con- and for other purposes tractors, Inc, et al agreed to by voice ENERGY COMMITTEE substitute amendment, agreed to by voice S 2088, as amended, passed by voice HR 1159 Tuesday, May 22: Designate Juan Bautista de Anza National Historic Trail, and for other purposes; with S 1970 Omnibus crime legislation an amendment [continued from May 21] ENERGY COMMITTEE substitute METZENBAUM amendment 1676 to de- amendment, agreed to by voice fine the term assault weapon and to ban the sale HR 1159, as amended, passed by voice of large-capacity magazines, tabled by 82-17 S 2388 Yosemite National Park Centennial Medal HATCH amendment 1681 to strike provi- Act sions that would prohibit the manufacture, sale, BANKING COMMITTEE substitute and possession of certain semi-automatic (as- amendment, as amended, agreed to by voice sault) weapons, pending at recess McCLURE amendment 1682 to BANKING MITCHELL unanimous consent to provide COMMITTEE substitute amendment to estab- for further consideration of above HATCH lish procedures for the minting of silver coin amendment 1681, with a vote, to occur on May proof sets, agreed to by voice 23 S 2388, as amended, passed by voice MITCHELL unanimous consent providing for consideration of certain additional amend- ments to be proposed to Title II of the bill Wednesday, May 23: [continued May 23] S 1413 Settle all claims of the Aroostook Band of S 1970 Omnibus crime legislation Micmacs resulting from the band's omission [continued from May 22] from the Maine Indian Claims Settlement HATCH amendment 1681 to strike provi- passed by voice sions that would prohibit the manufacture, sale, S 2354 Amend the Housing and Community Devel- and possession of certain semi-automatic (as- opment Act of 1974 to make technical correc- sault) weapons, rejected by 48-52 tions for grants to Indian tribes, and for other DOLE motion to reconsider the vote by 1 Friday, May 25, 1990 Congressional Monitor Page 17 Senate Floor continued. which above HATCH amendment 1681 was agreed to, rejected by 49-50 GRAHAM amendment 1686 to provide for reform of habeas corpus procedures, agreed to by voice THURMOND amendment 1687 to provide special habeas corpus procedures in capital cases, rejected by 47-50 MITCHELL unanimous consent providing for the Senate to vote on reconsideration of the THURMOND amendment 1687, with a vote to occur May 24 THURMOND amendment 1690 to add a "right VS. wrong" standard to the term mentally retarded, pending at recess MITCHELL unanimous consent providing for the Senate to vote on THURMOND amend- ment 1690 on May 24 [continued May 24] S 2075 Indian Environmental Regulatory Enhance- ment Act of 1990 INDIAN AFFAIRS COMMITTEE amend- ments, agreed to by voice S 2075, as amended, passed by voice Thursday, May 24: S 1970 Omnibus crime legislation continued consider- ation Friday, May 25: Schedule uncertain The Senate hoped to complete action on the conference report to HR 4404, FY90 supplemental appropriations, and adjourn until Tuesday, June 5. If action on the conference report was not completed Thursday, the Senate may be in session today. 20500 PRESTDENTO FL ww PATTY THE 1st DC CONGRESSIONAL MONITOR CQ A Publication of Congressional Quarterly Inc. 1414 22nd Street, N.W. Washington, D.C. 20037 Friday Follies FRONT BURNER NOW! FRONT BURNER NOW! a 9 GERMAN REUNIFICA GORBACHEV TheJoy SURVIVAL PERESTROIKA EAST ARMS EUROPEAN INDEPENDENDENCE REDUCTIONS STABILITY JIMBERSMAN COMCIMMATI EAGINES - a look at politics through the eyes of the political cartoonist - *** "I don't care a straw for your newspaper articles. My constituents don't know how to read. But they can't help seeing them damned pictures." (William Marcy Tweed speaking of Thomas Nast, 1871) WHITE HOUSE NEWS SUMMARY SPECIAL EDITION VOLUME II ISSUE 21 -- May 25, 1990 The crisis in my country deepens daily. The publics just starting Enough about the to grasp its enormity. My S&L debacle. Hows reform attempts have things with you ?... been ridiculed and my survivals at stake GORBICHEV Summit IF ARMS REDUCTION CARRIES ON AT CURRENT PACE I'LL REMOVE 80% of MY FINGERNAILS IF you DO THE SAME THROW IN YOUR TOE NAILS AND you've GOT A DEAL REGIONAL CONFLICTS / KAL" - HELMS JUST LeT Me KNOW IF YOU THiNK were OVERDOING iT. GORBYMANIA NEXT, WE HAVE A VINYL SIDING SALES WITH LIKE SAMPLES OF THEIR LATEST REP A CHANCE TO PRESENT LINE. FROM SAUK CENTRE WHO GORBACHEV WOULD 101 SIGN UP GORBACHEVEVER ACONT MAN!!! mmy LITHUANIA GORBACHEV TO MATTGROENING DEMOCRACY POND ORGE 01990 SEATTLE POST-INTELLIGENCER NORTH AMERICA SYNDICATE omio SAN FRANCISCO VIEY WHERE HAVE ALL THE COMMIES GONE...? THEY'RE OUT 5 VO-O-O-TING PRIVATIZATON AT THE OCTOBER REVOLUTION CASTING WORKS MILTON FRIEDMAN DASHBOARD STATUES DANZIGER -re Christian : cience Monitor The Miami Herald HEY!PRESIDENT BUSH WANTS TO WITHDRAN TROOPS PROM EUROPE ! FEE BIRTH WOW! BOLD MOVE! 2 " I SEE THEY'VE GOT YOU RE-OUTFITTED THIS YEAR, TOO! FAX MACHINE 84x11 PAPER WARSAW LAPTOP PACT NATO COMPUTER PAPER ERASERS STAPLES w CUPS PAPER LETTER PENS CLIPS PENCILS © ENVELOPES Geotisher ARKANSAS GAZETTE NICARAGUA S "IF YOU NEED ANYTHING, VIOLETA, WE'LL BE ON STRIKE." MR. ORTEGA AND THE OTHER GENTLEMEN STILL IN THE REST- ROOM, MADAM CHAMORRO? OK NOW PUT YOUR HAND'S SLiPPiNG OFF YOUR LEFT FOOT ENVIRONMENTAL ON NO NEW PRESiDENT TAXES TWISTER 1990 MANELLY Chicago Fribure. Captain Bush Reports from the Bridge OUR FIRST PRIORITY NOW HAS TO BE TO LOOK OUT FOR THESE PESKY ICEBERGS... DEFICIT SOTHEBY'S NOW. IF WE CAN PERSUADE THE JAPANESE THAT iT'S VERY PRESTIGIOUS TO OWN ONE 'I have $500 billion for this priceless 20th-century sleazeball $500 billion Do I hear $550 billion? 550! I have 550 Do I hear 600? GREAT DEFICIT! COPLEY MEMS SERVICE I HUMBLY OFFER MY SACRIFICE UNTO THEE LST THAT'S BIG OF YOU. CONGRESS CHARCOAL TAX- BRIQUETS PAYERS sill V STAYSKAL 90 TRIBUNE. S THANK YOU FOR NOT BREATHING SUMMER SENTIMEL HE DIED FROM PASSIVE SMOKE. € 0 VET MARLBORO COUNTRY IF michelangelo for the Arts. SIGNATURE Kitty 88 by JAmie By Jenny by Sarah of HORSIE By KATHRIA MAN Lisa SCHORR/from the Kansas City Star 'Actually, it's the only artwork Jesse Helms and Congress would allow the National Endowment for the Arts to fund.' SIALLEY @AROSUNDIEGOUNION OPLEYNEWS SERVICE OKAY, LET'S TALK... SOUTH AFRICAN GOVT. MOTHER, WIFE, SEE? FIRST LADY, LITERACY NOT EVEN ADVOCATE, VOLUNTEER AN MBA!! 1 1 WELLESLEY College BARBARA BUSH TO BE COMMENCEMENT SPEAKER CAREON CINCENNATI @(990 ENDURER "OK, ROLL 'EM, HONEY! THIS OUGHT TO GET US ON 'AMERICA'S FUNNIEST HOME VIDEOS' FOR SURE!" THE CAN ANYONE CANDY MAN get DOG. GET INTO CAN- HEAVEN? 90 ©P9OCHCAGO TRIBUNE PRESIDELLE THE OF VIS OF UNUM STATE UNITED THE UNITED The White House Office of Public Affairs THE WHITE HOUSE WASHINGTON May 25, 1990 MEMORANDUM TO PUBLIC AFFAIRS DIRECTORS FROM: CHRISS WINSTON cw DEPUTY ASSISTANT TO THE PRESIDENT FOR COMMUNICATIONS SUBJECT: WEEKLY PACKAGE In this week's package, you will find copies of the President's remarks to the following events: the University of Texas Commencement, a fundraiser for David Frohnmayer of Oregon, an Oakland, California "Points of Light" event, remarks to the Council of the Americas, a ceremony highlighting World Trade Week, and a ceremony celebrating the 25th anniversary of Head Start. For further information please contact Kristen Gear at 456-2930. AT THE WHITE HOUSE Thursday, May 31 President Bush welcomes Soviet President Gorbachev to the White House for the U.S.- Soviet Summit. The two President's will hold meetings during the day and President and Mrs. Bush will host a State Dinner for President and Mrs. Gorbachev in the evening. Friday, June 1 President Bush and Soviet President Gorbachev will continue to hold meetings during the day. In the afternoon, there will be a signing ceremony for U.S.- - Soviet agreements. The Official Return Dinner for President and Mrs. Bush will be hosted by President and Mrs. Gorbachev at the Soviet Embassy, in the evening. Saturday, June 2 President and Mrs. Bush will host President and Mrs. Grobachev at Camp David for the day. Sunday, June 3 President Bush and President Gorbachev will hold a joint press conference to bring the Summit to a close. AT THE AGENCIES AGRICULTURE: On June 2, Secretary Yeutter will travel to Santa Clara, California to deliver a commencement address at Santa Clara University. COMMERCE: May 27-28, International Trade Administration officials will travel to Yugoslavia and Poland to meet on various trade and economic development issues. EDUCATION: On May 29, Secretary Cavazos will address a dinner of the National Health/Education Consortium, a program sponsored by the Education Department, HHS, the Irving Harris Foundation and the Pillsbury Foundation. Secretary Sullivan will also address this group. On May 31, Cavazos will travel to Tucson, Arizona to address a conference on dropout prevention sponsored by the Arizona chapter of the League of United Latin American Citizens. June 1-2, Cavazos will travel to Idaho. In Caldwell on May 2, Cavazos will deliver a commencement address at the College of Idaho. ENERGY: On May 29, Secretary Watkins will travel to Portsmouth, Ohio to tour the Department's gaseous diffusion facility, used for uranium enrichment. Watkins will be accompanied by Senator John Glenn and Congressman Bob McEwen. Later Watkins will meet with local community leaders and educators. HEALTH AND HUMAN SERVICES: May 28-29, Secretary Sullivan will travel to New Mexico. In Santa Fe on May 28, he will visit an Indian health clinic to address the importance of the Indian Health Service and health care for minorities. In Albuquerque on May 29, Sullivan will address the New Mexico Health Conference. On May 31, Sullivan will be interviewed for the Saturday Evening Post. On June 1, Sullivan will travel to Ann Arbor, Michigan to deliver a commencement address at the University of Michigan Medical School. On June 2, Sullivan will travel to New Orleans, Louisiana to deliver a commencement address at Tulane University Medical School. HOUSING AND URBAN DEVELOPMENT: On May 30, Secretary Kemp will travel to Atlanta, Georgia to address a dinner marking the opening of the Glen Castle housing project. On May 31, Kemp will attend the first meeting of the President's Blue Ribbon Commission on Barriers to Affordable Housing. INTERIOR: May 29-June 1, Secretary Lujan will travel to Idaho and Montana. Lujan will tour the Birds of Prey Center, a facility established to enhance the recovery of endangered species, in Boise, Idaho and he will address a group of loggers in Kalispell, Montana. JUSTICE: On May 29, Attorney General Thornburgh will address a dinner sponsored by the National Legal Center for the Public Interest. The next day a seminar will be conducted at the Department for chief executive officers and counsels of major corporations. On May 30, Thornburgh will travel to Lake of the Ozarks, Missouri to address a law enforcement conference sponsored by the National Executive Institute and the Major City Chiefs. LABOR: On May 31, Secretary Dole will address a labor-management conference sponsored by the Department and the Federal Mediation and Conciliation Service, which will be attended by over 1,500 key labor-management policymakers. STATE: May 30-June 1, Secretary Baker will participate in Summit activities: he will greet President Gorbachev at Andrews Air Force Base, attend the Summit meetings and brief the press on the results of the Summit. TRANSPORTATION: On May 31, Secretary Skinner will address the Coast Guard's change of command ceremony. Admiral Paul Yost will be relieved as Commandant of the Coast Guard by Admiral J. William Kime. TREASURY: May 29-31, Secretary Brady will lead the U.S. delegation traveling to Paris for meetings of the Organization for Economic Cooperation and Development (OECD). Secretaries Yeutter and Mosbacher and Ambassador Hills will also attend the OECD meetings and will hold other bilateral meetings with their counterparts. Secretary Brady will also attend a ceremony marking the formation of the European Bank for Reconstruction and Development and a meeting of the G-7 Financial Action Task Force. UNITED STATES TRADE REPRESENTATIVE: June 2-10, Ambassador Hills will travel to Asuncion, Paraguay as a Presidential representative to the annual meeting of the Organization of American States. Hills will also travel to Brasilia, Brazil, Buenos Aires and Argentina for bilateral negotiations. VETERANS AFFAIRS: On May 29, Secretary Derwinski will address the Ukrainian National Association. May 31-June 2, Derwinski will travel to Alaska with Senator Frank Murkowski. He will conduct meetings with state and local veterans leaders in Ketchikan, Wrangell, Petersburg, Juneau and Fairbanks, address a group of Soviet World War II veterans in Fairbanks, meet with the Ketchikan Chamber of Commerce and hold press briefings in Ketchikan, Juneau and Fairbanks REPORTS: The Department of Agriculture will release the following report: May 30, release of the quarterly update to "Outlook for U.S. Agricultural Exports," which sets forth the official forecasts for agricultural trade for FY 1990. The Department of Commerce will release the following reports: -- May 30, release of the leading economic indicators for April. -- May 30, release of new:single family home sale figures for April. May 31, release of figures on manufacturers' shipments, inventories and orders for April. -- June 1, release of employment and unemployment data for May. UPDATE: -- GSA Administrator Austin last week announced that a 10- story former VA clinic in downtown Boston has been assigned to HHS for lease to the Vietnam Veterans Workshop, Inc. The facility will be used to shelter the homeless under the Stewart B. McKinney Homeless Assistance Act. Earlier in the week, President Bush recognized the Workshop as his 142nd "Point of Light" for its efforts in providing a 100-bed shelter for homeless veterans. With the addition of the new facility, the Workshop program will be expanded to include medical care, meals, counseling and 68 single- occupancy rooms for transitional housing. The Agency for International Development recently sent two teams of volunteers to Poland to advise the Polish government on the development of its commercial banking system and stock market. THE WHITE HOUSE Office of the Press Secretary (Austin, Texas) For Immediate Release May 19, 1990 REMARKS BY THE PRESIDENT IN UNIVERSITY OF TEXAS COMMENCEMENT ADDRESS University of Texas Austin, Texas THE PRESIDENT: Governor, thank you. Thank you very, very much. Delighted to be here. A magnificent turnout. Thank you all. Governor Clements -- Bill, thank you very much for that gracious introduction. And to you and Rita, my profound thanks. I do view you as friends, and I'm very lucky for that. To Congressman Jake Pickle and Beryl, congratulations, and congratulations on the graduation of your granddaughter Bergen Norris, out here somewhere. And to Chairman Beecherl and Members of this distinguished Board of Regents and to Chancellor Mark --- Mark and President Cunningham, distinguished platform guests, Reverend Bethune, most distinguished faculty of this great University, thank you all. I'm pleased to be here, and there is nothing like the great outdoors. (Applause.) For once, it doesn't seem to matter whether you sit on the 50-yard line or not. And I understand I'm also too late for Eeyore's birthday party. (Applause.) But it's great to be back in Longhorn country, just the same. I gave my first U.T. commencement address in '73, when I had just completed a tour of duty as Ambassador at the United Nations. And I am pleased to be back. And I am grateful, and indeed honored, by this honorary degree in law. Thank you very much for that high honor, to the regents. (Applause.) So many great Americans have given this address, including a former Texas public school teacher by the name of Lyndon Johnson, and later, his wonderful wife who served this University as a regent, Lady Bird Johnson. So I consider it the highest honor to once again address the graduates of this great institution. The ideals of U.T. were born with Texas, when the revolutionaries of 1836 called for "a university of the first class." And Texas began dirt poor, but Texans were rich in land and vision. And so what began as a dream of 40 acres of pasture is now a mini-metropolis housing some of the best schools in America. Nobel and Pulitzer Prize winners rank among your faculty, National Merit scholars lead your students. So let me say it loud and clear: the first Texans, in a sense, were wrong. This is not just a first-class university. You are graduates of a world-class university. (Applause.) And if I ever forget this, if I ever should forget that our Secretary of State Jim Baker would remind me and BO would our own son Jeb, another proud graduate of this University of Texas. Your splendid libraries house the manuscripts of Joyce and Hemingway and Beckett. You are justly proud of rare books and folios that resound with the rich voices of Chaucer and the Italian Renaissance, Shakespeare and Spenser. But a world-class university must have a revered tradition of its own. And so you do. It was near here that J. Frank Dobie held court with other scholars of the Southwest on the beloved MORE - 2 - Paisano Ranch. And it was here that Walter Prescott Webb scrutinized old legends and O. Henry spun new ones. And since then, students from around the world have become a true part of the University of Texas community, as U.T. has certainly become more of a part of the world. And within this wide world, you can choose to work and succeed in Paris, France or Paris, Texas. In short, you face the best of dilemmas; a wealth of opportunities -- opportunities born of democracy. In four commencement addresses this spring, I have examined what makes democracy such a special way of life: how democracies refuse to perish by uniting in a strong defensive alliance; how they are stengthened by the rule of law; how freedom empowers people to solve the toughest problems; and how democracy leads to progress and adventure. Tonight, in this for me my final commencement address of the year, I want to discuss the personal side of democracy: what it offers us and what we can make of it. To graduate from college in America is to be as free as any man or woman can be. And now, for the first time in half a century, a new generation in Eastern Europe is reveling in freedom; throwing their caps in the air and shouting to the high heavens because finally they are free to live where they want and free to be what they want. From Austin, Texas to Berlin to Budapest, we live during a remarkable moment in world history, an exhilarating time -- the triumph of freedom. (Applause.) But freedom has a constant companion: challenge. And so I am here tonight to challenge you to make the most of our changing world, to live these remarkable times, to take risks, to do something extraordinary. This is what Jack London was getting at when he wrote: "I would rather be a superb meteor, every atom of me in magnificent glow; than a sleepy and permanent planet. The proper function of man is to live, not to exist." And of course, you don't have to strike out for the South Seas or the wild country of Alaska like Jack London. But you can make your life an adventure. Next month will be 42 years since my own graduation. And like many of you, I, too, was presented with some choices on my graduation day: further study or maybe a law firm or a bank or the stock market and probably for me in New York or in the East. Honorable interesting professions, all. But the truly great decisions we make in life are rarely logical or practical. They spring right from the heart. And so I packed up, Barbara and I packed and I drove my red Studebaker from the eastern states of our upbringing to the oil fields of West Texas. And we chose a future that would be uniquely our own. And like most Americans, we were free to live where we pleased, do what we wanted. We came of age at a time when the post-war possibilities of America seemed limitless. But outside of America back then, the world of free choices was shrinking. Winston Churchill's prediction that an Iron Curtain would sever Europe into two hostile camps was soon fact. An Iron Curtain did cut Eastern Europe from the West, and Germany from itself.. And when every brick, every guard tower and every strand of barbed wire was in place, two worlds existed. One of free people and free choice, and one of tyranny and subjugation. Eventually, millions of men and women were told what to think and study, what job to take and where to live. Imagine, all that drive, talent and imagination misused and wasted. Yet many still held fast to what Barbara Jordan calls "conviction values." Even under the pain of death, they resisted. This was the conviction Andrei Sakharov, who, you remember, confronted Krushchev with the truth on above-ground nuclear testing. And that's one reason the Soviet people revere his memory MORE - 3 - today. This is the conviction of an electrician from Gdansk who freedom. I'm proud to know -- Lech Walesa, who lead the Polish people to And it's the conviction of Vaclav Havel of nation. Czechoslovakia, the imprisoned playwright who now leads a great Let me tell you a little incident about President Havel and a few other brave souls from the East. It was this man that I had the honor of inviting up to the White House residence not so many days ago to see the Lincoln Bedroom. And President Havel was in awe because he knew that this room was really President Lincoln's old office. And it was there that Lincoln worked, deliberated, agonized over a terrible war. But President Havel knew that that room is hallowed for one reason above all -- it was there that President Lincoln signed the Emancipation Proclamation. It was there in that room that he freed a people. And it was there in that room that I saw President Havel moved to tears by the knowledge that freedom's bell was ringing at long last for his beloved Czechoslovakia. What one man draws from history another finds in music. President Landsbergis of Lithuania, who adopted Beethoven's Ninth Symphony as an anthem for his people's movement, was asked why the strains of Beethoven should resound through the streets and squares of Vilnius. And he replied that it is because the Ninth is a "symphony of freedom and victory against slavery, insidiousness and darkest hatred." And what one finds in music another finds in words. Consider the case of a man named Cestimir Suchy, a Czech journalist who refused to describe the 1968 Soviet invasion of his country as an act of brotherly love. Mr. Suchy was fired for his honesty. But he was allowed to make a living at a new profession -- washing windows. Ask him for his business card today and it still says Suchy, Window Washer. But this is an example of the man's good humor, for now he has a job with a new title. He is the Dean of Journalism at Prague's Charles University. Throughout the universities of the East it is the mandarins of Marxist dogma who are now out of work. Let me tell you one last story -- that of Arpad Goncz of Hungary who came to visit me just yesterday in the Oval Office. Like President Havel, President Goncz is also a playwright. I don't know what it is about playwrights becoming presidents of great countries in Eastern Europe. But a former anti-Facist fighter and newspaper editor, he was sentenced to life imprisonment during the 1956 Revolution. But once released, he persevered as a dissident, and today he leads the Hungarian people as their acting President. And so the determination of men and women yearning to be free is simply proving tougher than the walls that surround them. Because of their courage, the free world is now more vast than anyone ever dared imagine. And this is our amazing new world of freedom. And with greater freedom comes greater opportunity -- in the East and the West: Whether you will make your careers in the arts, business, law or science, this can only be good news. Just this morning, I toured the Houston office of what will be the site of our next economic summit with Canada, France, Great Britain, Italy, Japan and Western Germany. When we meet, it will be more than just a comparison of balance sheets. It will be an act of fellowship between free nations. These nations stood with us through that long twilight struggle, through the painstaking building of alliances and the endless preparations for a war that must never be. Through the human MORE - 4 - toil and the human toll. The sacrifice of resources that could have been used for gentler ends. And this is what the Cold War has cost: Western Europe and America. But that sacrifice has been rewarded by the most precious gift of all -- the dawn of new freedom and new hope for millions. Today we see progress on many important fronts. As you know, Secretary Baker has been meeting this week with Soviet leaders to prepare for my summit conference with President Gorbachev beginning May 31. While there is additional work to be done, I think Jim Baker's meetings represent a major step forward. This breakthrough should allow us to reach the important goal that we set in Malta -- completing the major substantive elements of an historic strategic arms reduction treaty. In addition, we will be able to conclude other arms control measures with the Soviets, including an agreement on dramatic reduction in chemical weapons, as well as technical and commercial agreements. I am confident that the progress that we have made will allow this summit to be another solid step forward in the vital U.S.-Soviet relationship. Today, as perhaps never before in history, freedom is prevailing throughout the world because freedom works. Freedom is not only right, it's practical. It's not only good, it is better. And it is because of the indomitable spirit of man that the day of the dictator is over. But there are also many extraordinary men and women to be found right here at home. Like Felicitas Atabong, a student from Cameroon, who tonight will receive a degree in computer science. She just turned 19. And then there's Maggie Taylor, who graduates tonight with a Bachelor of Fine Arts degree at the age of 70. (Applause.) Or Irene Burnside, a nurse whose experience goes back to the Army Nurse Corps in the Pacific Theater of World War II. And tonight she earns her PH.D. in nursing with a speciality in gerontology. (Applause.) But like them, you -- all of you -- have spent years learning. And now is the time as you leave this great university to spend your life doing. Make your Czech or Polish lessons work for the Citizens Democracy Corps. Put your Spanish in service of the Peace Corps. Or work with VISTA right here in our precious United States of America. Care for the AID babies. Love every child in the hospital corridors of your own backyard in Austin to the beleaguered clinics of Central Africa. But whatever you do, live a life of adventure and meaning so brilliant that, like a Roman candle, it lights up the world. Dazzle us. Astonish us. Be extraordinary. Once again, it is a delight to be back. God bless all of you graduates of this great university. And may God bless the United States of America. Hook 'em Horns. Thank you very, very much. Thank you. Thank you all. (Applause.) END 8:42 P.M. CDT THE WHITE HOUSE Office of the Press Secretary (Portland, Oregon) For Immediate Release May 21, 1990 REMARKS BY E-PRESIDENT AT DAVID FROHNMAYER FOR GOVERNOR FUNDRAISING BREAKFAST Grand Ballroom Portland Hilton Hotel Portland, Oregon 8:00 A.M. PDT THE PRESIDENT: Thank you very, very much, Dave, for that wonderful introduction. It's great to be here this morning. It's good to see you, my old friend, Governor Vic Atiyeh. And, of course, Representative Danny Smith, one of our anticrime leaders in the United States Congress. Lynn -- to Lynn Frohnmayer, Dave's strong right hand. I know she's one of the mainstays of this campaign. I had my picture taken with her family. I think half the audience -- this half -- is all Frohnmayers. (Laughter.) But nevertheless, that's okay. We Bushes understand that. (Laughter.) Thank you, Lynn, for all you do in this cause. - Oregonians have a wonderful way of making you feel at home. I just had -- we had a receiving line for some who have done an extraordinary amount for this successful event. I said to one most attractive young couple, I said, "Where are you all from" He said, "Well, we're from eastern Oregon. We're on the frozen vegetable business, but we don't do broccoli." (Laughter.) So I was very grateful for that -- (laughter) -- sensitivity there. I did want to single out the man who's doing so much to lead the crusade, the fight against narcotics -- Bill Bennett. We had a marvelous event yesterday where we were both privileged to honor the police in Portland. Sometimes, we take for granted their service to communities like Portland, their law enforcement people. So Bill Bennett was with me, and you should know of the confidence I have in him and the gratitude I feel for him every day for leading this all-important national fight against narcotics. (Applause.) And, of course, it's always a pleasure to join your dynamic Republican leadership. My old friend, Craig Berkman, the Chairman; and Marilyn Shannon; Don Wyant. Frohnmayer Finance Chairman, always dependable, Claris Poppert; Colonel Morelock and, of course, I want to congratulate and pay my respects to, and once again say hello to Norma -- Norma Paulus -- congratulations on your great victory. (Applause.) And I know Norma Paulus will be an outstanding superintendent of public instruction. When it comes to education, I believe you'll make a great team with the next governor of Oregon, Dave Frohnmayer. I think it's going to be good for this state. (Applause.) You know, Dave is a Texan. If I was wearing that hat, I'd take it off to the Blazers. - Couldn't go home to Texas if I did, but nevertheless, I want to salute them. (Applause ) And really, it is great to be back here in Oregon and a beautiful state So much to do outdoors. I'd love to get in some fishing while I'm here. The way I fish, we-don't have three weeks to spare however -- (laughter.) But I do remember my last trip with some wonderful adventure, going down one of your most beautiful rivers. But I'm not here today to tell fish stories. I'm here to talk for a few minutes about the future of this state, the future of our great country. MORE - 2 - This November, there's going to be an election to decide what kind of governor will lead Oregon into the 1990s. And I can tell you one thing -- Oregon doesn't need a governor who needs on-the-job training. Oregonians want Dave Frohnmayer, and I'm encouraged by the strong surveys and by the spirit of his campaign. Dave's a family man. In fact, as I said, I just met three of his five kids -- Katie, Mark and Kirsten; and, believe me, I know campaigners when I see them. One of them -- Kirsten -- is even one step ahead of her old man -- her father. (Laughter.) She was just elected president of her high school student body. And I know how proud Dave is of her and of all of his children. Dave is a family man and more. A native Oregonian. Rhodes Scholar. Degrees from Harvard, Oxford and Berkeley. Awesome combination there. Professor of law. Forty-nine years old. Six years in the State House of Representatives, and now in his 10th year as Attorney General of this state. In 1988, he was reelected with no opposition and both parties' nominations, setting the record as the largest vote-getter in Oregon state history by winning nearly a million votes. And all this before breakfast. (Laughter.) I wish I could stick around and see what's next. We all have an idea of what's next. After a decade as a law professor, another decade in public life, Dave has emerged as a leader in educational excellence. Now, the time has come for us to support him, to help him become and education governor. Like Dave, our administration has made excellence in education one of the top priorities. Back in September, the nation's governors joined me at an education summit in Charlottesville, Virginia, to set new education goals for America. Not to dictate to the states, but to set educational goals for America. In my State of the Union address, I announced those goals: To better assess students' performance, increase our graduation rate, produce a nation of literate adults, and make our schools drug-free; assure that all children start school ready to learn through programs like Head Start and ensure that by the year 2000 our students are first in the world in math and science achievement. The author, John Ruskin once wrote: "Education is leading human souls to what is best and making what is best out of them." By teaching our young people well, we ensure a bright future for them in commerce or public service or medicine, high-tech industries. We make the best out of America and we build a better America. This is our legacy of freedom to future generations. And it is one that is very important to me as President. Part of protecting this legacy -- part of protecting this legacy also means keeping America safe. Dave has served this state as Attorney General, protecting our schools and streets from the violence of drugs and crime. During that time, he's won six out of seven cases that he's argued before the United States Supreme Court -- the best record of any Attorney General in the country. (Applause.) Simply put, Dave Frohnmayer is the only candidate running with the experience and the determination to stand up and fight the drug dealers and violent criminals that are threatening our neighborhoods. We need Dave's take-charge attitude to take back the streets of America. But we will also need a strategy that involves both the state and the federal levels. So I've asked Congress to pass tougher laws, stiffer penalties and increase prosecutorial powers in the Violent Crime Control Act. The U.S. Senate will take up these proposals this afternoon. So let us call on the Senate to take the next step and protect Americans with tougher laws. (Applause.) MORE - 3 - Just last week my administration also sent to the Hill new proposals to stop drugs and drug smugglers from breaching our borders, to stop them cold. We've called for more border patrol agents, extending general arrest authority so they can enforce our drug laws. We're also proposing legislation that will permit federal judges to more swiftly deport criminal aliens convicted of drug felonies. And we will also seek the power to order airborne planes suspected of drug smuggling to land. So our message to those who traffic in human misery is clear: Keep out of America. To those who ask if our measures are too harsh, I say that the threat to many Americans, especially those living in the inner city, is too great. Or as Benjamin Rush, a signer of the Declaration of Independence, wrote: "There are two doors to the temple of tyranny. One is government so strong that it can do whatever it pleases without regard to justice. And the other is government so weak that it cannot protect the public from the worst among themselves." But there is another side to the drug problem, a personal side; and so that is why Dave seeks the same approach for Oregon that I seek for all of America -- to expand the drug treatment programs. Since I took office, my administration has proposed a 68 percent increase in drug treatment funding. And now we're asking Congress, through our new legislation, to help make those dollars work better. And we want the states to develop drug treatment plans so that the right kind of treatment reaches the people who need it -- especially pregnant women and drug-affected newborns. But it's going to take a coordinated effort by our state leaders across the country to free our citizens of the revolving door approach to criminal law. A comprehensive approach to fighting drugs and crime in this state. And that's another reason why I need Dave Frohnmayer as Oregon's next governor. Oregonians also want a governor who understands this beautiful state. From the Snake River to the Pacific Coast. Dave knows and loves Oregon. Knows and loves its precious environment. As an outdoorsman, he's deeply concerned, as I am, about preserving and protecting our environment. It's going to take a lot of work to protect this great planet and its wildlife without throwing hard-working citizens out of a job. I reject those who would ignore -- totally ignore the economic consequences on the Spotted Owl decision. (Applause.) The jobs of many thousands of people -- it's a human equation -- the jobs of many thousands of Oregonians and whole communities are at stake. But I also think that we ought to reject those who don't recognize their obligation to protect our delicate ecosystem. Common sense tells us to find a needed balance. And together, I am convinced that we can work to find that balance. We also need to find a balance when it comes to clean air. I am committed to a cleaner environment. And that's why I've proposed the first major revisions in the Clean Air Act in more than a decade. I want Congress to pass a bill that will sharply cut acid rain, smog, toxic pollutants. But Congress has got to respect another kind of delicate ecology -- that of jobs and opportunity. So I call on the House not to keep America waiting for cleaner air to pass a reasonable clean air bill in line with the compromise that we hammered out with those Senate leaders -- both sides of the aisle. Not another bill that consumers and workers cannot afford. Here in Oregon, you have a strong Republican team that we need to send back to the United States Capitol. I just can't tell you how much I enjoy working with your friend and mine, Senator Mark Hatfield -- very important that he be reelected. And the Smith duo, Bob and Denny. Denny, wno is with us here this morning, is a key member of our administration's efforts on Capitol Hill. All of these leaders, along with our own Bob Packwood, are tackling the problems MORE - 4 - of crime and drugs, the environment and education. But this great team really needs a governor back home to get the job done right. You know, at my invitation, Dave came to the White House last fall to talk about these issues and other issues. Maybe he popped in to see his brother. And I might say, I am very proud of John Frohnmayer and what he's trying to do for this country. (Applause.) But anyway, Dave's a forceful and passionate spokesman for the people of this great state. I can tell you -- he's a fighter. He believes in the people of Oregon. He believes in the principles this state has stood for since Thomas Jefferson sent Meriwether Lewis and William Clark on their noble expedition across the unknown wilderness. They spent the winter of 1805 near the mouth of the great Columbia River, where a memorial still stands in their honor. And it was 87 years ago today that another great leader and outdoorsman, President Theodore Roosevelt, laid the cornerstone of that memorial and spoke to the people of Oregon. "Let us carry on the task that our forefathers have entrusted to our hands, and let us resolve that we shall leave to our children and our children's children an even mightier heritage than we received in our turn." Those are the words of one of the great -- conservation President. Well, Dave Frohnmayer is a man of integrity, achievement and honor. A man who will leave Oregon an even mightier heritage than the one left to him. I'm proud to say that he's got a good friend in Washington pulling for him on election night. So let's keep Oregon great, let's keep it Republican; and this November, let's make Dave Frohnmayer the next governor of this great state. Thank you all, and God bless you. And now, you can have your' Breakfast. Thank you very much. (Applause.) END 3:15 A.M. PDT THE WHITE HOUSE Office of the Press Secretary (Los Angeles, California) For Immediate Release May 21, 1990 REMARKS BY THE PRESIDENT TO THE COMMUNITY OF OAKWOOD Webster Residence Los Angeles, California 12:07 P.M. PDT THE PRESIDENT: Well, it's a beautiful day, and I'm delighted to be here. Thank you, Foster Webster, for inviting me into your home today. I'm pleased to have with me today Director Bill Bennett, who's doing such an outstanding job leading our country's fight against drugs. (Applause.) And, of course, another leader in that fight -- your own great United States Senator Pete Wilson. (Applause.) But here in Los Angeles you also have a talented and dedicated Chief of Police, a man I respect greatly, Darryl Gates with us here today. (Applause.) Doing a great job and doing it right. I also want to mention Jim Hahn with us, your City Attorney. (Applause.) And your City Councilperson Ruth Galenter here today. (Applause.) Thank you to the community of Oakwood for this welcome and for the extraordinary example of neighborhood unity and dedication which you set for us all. You're truly a point of light -- Darryl Gates says, that's no point of light, this is a beacon of light for the entire country, leading others out of the darkness. (Applause.) The world which we see now from Mr. Webster's front yard is a good one. Carved on the face of this community is a message of family and future. We see a neighborhood united -- no longer out of fear, but out of strength. This world is one of hope. But the world of this community's memory is not. This vivid world which still haunts many here was a cruel one. One whose inhumanity and hopelessness dominated their lives -- where drugs and crime made them prisoners of fear. It's from this shattered world that the members of the Oakwood neighborhood crafted a new dream. They wanted to be free in their own homes. So working with the police, they decided to reclaim their streets. To reclaim their children. To reclaim their future. And they are succeeding. (Applause.) The first time some neighbors met with the police to discuss what they could do, two police cars were parked outside a resident's home while the officers talked with the people inside. But on the corner across the street, in defiant mockery of the police, drug dealers continued to sell their poison. It was a world of drive-by shootings; of frustrated anger that exploded in gang graffiti, vandalism, armed robberies and, above all, the obsessed tragedy of drug abuse. It was a world held captive to crime -- a world without center, without safety, without sense. But since the community undertook its quest to clean up their streets, police estimate that drug- and gang-related crimes in Oakwood hae declined 44 percent. (Applause.) The darkness of drugs, crime and fear is being banished. In its place shines the light of honor respect, and family pride. MORE - 2 - When the legendary bird called the Phoenix was destroyed by fire, it rose again from its own ashes -- reborn stronger than ever. Oakwood heart. is a phoenix. It's a magnificent reminder of the power of the human I want to `tell you the story of two boys who grew up here right in this neighborhood, these neighborhoods. It's not his name, but let's call the first one Michael. A few years ago, a picture of Michael might have shown him playing baseball down the block -- loving the game, loving the moment. But later would come other pictures. One of him around the corner from the baseball diamond he loved, selling drugs in its shadow. Another of him in gang colors, his gun blasting into the night. Today we see a final picture. His heart hollow, his eyes empty, he drags himself bitterly through the prison he now calls home. He is lost to us now. His life was as brief as the frozen image in that first photograph of innocent youth -- when his eyes were looking brightly toward a future he will never see. Yet, in Oakwood, the memory of the emptiness of his lost life will last forever. So will the emptiness left by the devastation of his own neighborhood -- shattered by his streetside dealing, rampages of violence, his shootings. For he was Oakwood. His life was the route to take a few years ago when you grew up here with nothing but drugs and crime and hate as your models. But finally, there came a moment when the people of this community could no longer bear what they lived with every day: the wasted lives of those who terrorize and who are terrorized. Michael may never have a second chance. But the Oakwood residents became determined that the rest of their community would have a second chance. A chance to face the sun together. Let's call the next boy Paul. Last month, when neighbors were holding their candlelight vigil for a drug-free community, a woman noticed a little kid, a little six-year-old boy at the side, just watching on curiously. "What's going on?" he asked. She explained that the vigil celebrated his neighborhood's rebirth. Then she asked him where his parents were. "I don't have any," he answered. It turned out he lived with his grandmother and his uncle, a drug dealer. The boy walked away. The woman thought, well, that's the sad end of another sad story. But a little while later, as the vigil continued, she saw him again, shyly joining the others. Dressed in his best clothes, he stood in the soft light of a hundred candles, with a candle of his own in one hand, his grandmother's hand in the other. If Oakwood had continued the way it was going, Paul, too, might have been lost to us -- in the tragedy of death or the blank-eyed hopelessness of prison. Instead, he can now grow up playing on a community baseball team coached by the policemen Michael and his gang had spent their young lives taunting. He will help his neighbors paint over the violent graffiti with which Michael's gang had scarred the face of the neighborhood. He will grow up knowing that there is an alternative to drugs and crime. And its name is hope. That's what we celebrate today. More than this community's freedom from the oppression of crime and despair, we celebrate their hope. Their determination. Their spirit. In a special way, when the first people decided to take back their community, they lit the first candle of hope. When more and more of their neighbors joined them, their unified spirit shone with a light that banished the darkness of despair. Thanks to the vision, courage and wisdom of the residents of Oakwood, we are today witnessing the wonder of a MORE - 3 - rebirth. It's more than a rebirth of community. It's a rebirth of hope, of life and of the future. And so today I am proud to name the Oakwood community the 148th National Point of Light, for the inspiration and the example that you are setting for our entire country. (Applause.) Oakwood proves that no community has to accept things as they are. Americans don't have to live in fear. Crime, drugs, hunger, homelessness and so many other social problems can be driven from every community, if every community cares enough to light the candle of hope. God bless each and every one of you for what you're doing, setting an outstanding example for our great country. And God bless the United States of America. Thank you all. (Applause.) END 12:15 P.M. PDT THE WHITE HOUSE Office of the Press Secretary For Immediate Release May 22, 1990 REMARKS BY THE PRESIDENT TO THE COUNCIL OF THE AMERICAS The State Department Washington, D.C. 11:30 A.M. EDT THE PRESIDENT: Thank you for that welcome. And thank you, Secretary Baker. Jim Baker's just back from a very interesting and highly significant trip to the Soviet Union which I'm sure you've all read about. From my standpoint, it went very well indeed. I think he's done a lot of clearing the way for what I hope will be a highly successful meeting with Mr. Gorbachev not so many days away from now. I want to thank him. Normally, he's not awake this close to his jet lag recovery -- it takes him a little longer. But he was looking forward to being here. But he had a tough and grueling trip and it's still, I'm sure, on him. But I thank you very much for being here today. To David Rockefeller, my friend and the Chairman of the Council of the Americas, I want to thank you. David came to see me a while back and told me of the emphasis that he felt should properly be placed on Central America, South America, the Americas. Something he's stood for for a long time. But I will address myself to some of those concerns in a minute. But I want to thank him, I want to thank Ambassador Landau, and Kim Flower, and of course, pay my respects to my trusted right arm in the White House in foreign affairs, General Brent Scowcroft, who is head of the National Security Council. To Bernie Aronson for whom I have great respect and with whom I personally work very closely on a lot of these matters -- he, Jim and I, and Brent -- matters affecting our common interests here today. I am pleased once again to speak to this most influential group. Pioneers, if you will, in the private sector -- private sector effort to expand trade investment between the United States and Latin America. I'm delighted to address this gathering after what has been a remarkable year of change. I told a group out in Oregon yesterday, I can't think of a more fascinating time in the recent history of our country -- certainly in the Nuclear Age -- to be President of the United States. Over the past 12 months, it sometimes seemed that the eyes of the world rest solely on Eastern Europe, on the miraculous transformation that's taken place there. Our friends in Latin America have watched these historic events unfold, with inspiriation, certainly with awe. But also, I know, with an unmistakable sense of anxiety -- and it was this that David was talking to me about -- concern that our active involvement in Europe will mean a decline in the United States' interest in Latin America. I'm here today to assure you -- just as I've assured the many Latin American leaders with whom I've met -- that the events of the past year have increased our interests in this region -- strengthened our desire to forge a new partnership with the growing forces of freedom in Latin America. Because the fact is, the great drama of democracy is unfolding right here in our own hemisphere. MORE- - 2 - Think about the tremendous gains made for freedom just this past year. When I spoke here last May, the people of Panama were preparing to go to the polls. Even as the dictator of Panama was preparing to steal the election. And in Nicaragua, civil war raged, the Sandinistas ruled -- and the brave men and women of the Nicaraguan opposition were just beginning the long campaign that led to this year's great victory for democracy. In Central America Nicaragua and Panama. In South America -- Paraguay and Chile. All across the Americas, today more people live under freely-elected governments than ever before -- and we are closer than ever before to the day when all the people of the Americas, North and South, will live in freedom. Even in Haiti, the scene of so much human suffering and anguish and turmoil, the provisional government has now announced its intention to hold free elections. This Thursday, I will be meeting with the new leader of Haiti, where we're sure to discuss ways that we can support democracy in Haiti. In all of Latin America, only Cuba remains. Castro's island, isolated, totally out of step with the democratic tide. But today we're celebrating the anniversary of Cuban Independence. And let me say with certainty that even in Cuba, the dream of democracy can only be pushed back a little -- only deferred -- it will never be destroyed. As we in the United States welcome our Central and South American neighbors into the ranks of democracy, we must offer them our help -- and something more. We must offer them our respect -- the respect due one free nation from another -- and the outstretched hand of partnership. I've been working with Jim and Brent and others to strengthen our ties. Just this year alone, I've met with Presidents Barco, Paz and Garcia, at the Andean Drug Summit in Cartegena. It was a good meeting, incidentally. Here in Washington, I've hosted Presidents Perez, Carlos Andres Perez; Paz Zamora; Cristiani and Endara; Collor de Mello; Calderon and Callejas; and Prime Minister Manley as well. In each case, I've come away from our talks with a strong sense of optimism. And I believe every one of those leaders left the White House knowing that the U.S. is engaged as never before in the future of this hemisphere. While from country to country conditions differ, we know now that our challenge is to consolidate democracy -- and accelerate development. That means advancing the intellectual revolution now sweeping Latin America a movement away from stale, statist doctrines. Away from dictatorships of the right and the left. Toward democracy -- free government -- free enterprise. Toward the true political and economic empowerment of the people themselves. That means encouraging, for the first time in many cases, geniune free market reform. Even in the countries that claim no kinship with communism, true free enterprise did not exist. In practice, economies were often organized to ensure the prosperity of the people in power -- not to open an avenue toward upward mobility for anyone ready and willing to work. Peruvian economist Hernando de Soto describes the maze of bureaucratic barriers that stood in the way of the entrepreneur and stifled economic growth in his country. De Soto also shows how much Lima, Peru's capital, owed its economic vitality to what he calls the "informal sector" -- the thousands of individual and enterprising individuals doing business without the consent of the state. MORE - 3 - De Soto's prescription -- and mine -- is to free this economic force. Unleash the million sparks of energy and enterprise. Let the incentive of reward inspire men and women to work to better themselves and their families. Already, Latin America is discovering this path. In Brazil and Bolivia, in Argentina, Venezuela, Mexico, Costa Rica and Jamaica -- free market reforms are going forward, creating space for private initiative to take hold and flourish. And as they succeed -- and as they reap the rewards that will follow what can be a -- will follow this -- I would say what will certainly be a painful transition -- these nations will bring others along in their wake. We in the United States must do all we can to ensure the future of free markets in the Americas -- because our nation has a stake in the economic health of this hemisphere. We know that since the late '70s, Latin America's share of all U.S. trade dropped from 10 percent of all U.S. exports, down to 7 percent. And yet -- last year, for the first time ever, two-way trade between the United States and Latin America topped $100 billion dollars. As that trade continues to grow, so will the link between our prosperity and the prosperity of our Latin American partners. Let me provide just a few statistics to drive home this point. Last year, the Colombian economy grew 3 percent. U.S. exports to Columbia rose 9 percent. Mexico's economy grew 3 percent -- and U.S. exports to that country climbed 21 percent. In Chile, with an overall growth rate of 10 percent, U.S. exports increased by triple that rate -- more than 30 percentage points. The most effective way to ensure expansion of trade between the United States and Latin America is for all countries of the hemisphere to support a successful Uruguay round. The ambitious agenda in the Uruguay round, including proposals for significant multilateral tariff reductions, will benefit our Latin American trading partners. We are committed to the expansion of trade and investment liberalization, and we seek Latin American support for these very important objectives. In addition, the strengthened debt strategy launched last spring has reinvigorated market-oriented economies, and reinvigorated the reforms in Latin America. These economies help provide the needed foundation for democracy itself. That's why I'm so pleased to report on the progress we've made this past year under the Brady Plan. Mexico, Venezuela, Costa Rica have all reached agreements with their creditors on ways to reduce their debt -- ways to complement their efforts to restructure their economies along free-market lines. Because in the long term, the free market remains the only path to sustained growth. We all know the private sector plays a crucial role. Taking advantage of new investment opportunities is good for business -- but, at this critical moment, there's something beyond the bottom line. Something that can't be measured simply in terms of GNP. The role the Council of the Americas can play -- expanding trade and strengthening the private sector -- that role contributes not just to economic growth -- but to the growth of democracy itself. Now, there is, of course, an important role for government to play as well -- especially during the difficult days of transition from dictatorship to democracy. That's why, frankly, I've called on Congress to provide $800 million in emergency economic aid to Panama and Nicaragua. We have a big stake in this. This aid is critical A little over a week ago, I received a letter from President Chamorro, Violeta Chamorro -- just 3 weeks into her term in office -- telling me that Nicaragua was bankrupt. And yet, for more than 2 months now, this emergency aid has been bogged down on Capitol MORE - 4 - Hill. To give you an idea of the magnitude of this problem, in March I requested $800 million for Panama and Nicaragua -- asking that this bill be finished on April 5th. April 5th. It's now May 22nd, and the funds for Panama and Nicaragua have been reduced by $80 million, even though $1.4 billion in extra spending has been added to this legislation. Finally, it appears the Congress may act this week on this vital measure. For the people of Nicaragua and Panama, meanwhile, democracy hangs in the balance. So let me again say to the Congress: The fate of freedom rests in your hands. Do the work of democracy -- and pass this emergency aid package now. Today, I began by speaking about the changes that have riveted world attention on Europe. Part of the power of the story is that it can be told in intensely personal terms -- as the story of the dissident playwright who is now president. or of the electrician who came to symbolize his people's hopes for freedom. Democracy's advance in Latin America has produced its share of heroes -- and today I'll close with three from one country alone -- Latin America's newest democracy: Nicaragua. For 4 years -- beginning in 1979, the year the Sandinistas took power -- Enrique Dreyfus was head of Nicaragua's Supreme Council of Private Enterprise -- a private-sector group in many ways similar to this one. His criticism of Sandinista rule put him on the Sandinista black list, and landed him in prison. Today, with the swept from power, Enrique Dreyfus is not just free from persecution -- he is Nicaragua's new Foreign Minister. In 1985, members of the Sandinista internal security force beat Sofonias Cisneros for criticizing the way the Sandinistas had politicized the schools. Today, Mr. Cisneros is Minister of Education. And on July 10th, 1988, opposition leader Myriam Arguello was beaten, taken from her home in the middle of the night by Sandinista police -- tried, and sentenced to 6 months in prison. Today, Myriam Arguello is President of Nicaragua's freely-elected National Assembly. These three stories underscore in personal terms the truly revolutionary political change that's taken place not just in Nicaragua -- but across the Americas. Change that proves beyond doubt that the day of the dictator is over -- and democracy's day has come. For our part, we in the United States must do all we can to help secure for all the Americas the freedom, the peace and the prosperity we enjoy. Please, keep up more now than ever, your important work in guaranteeing that democracy succeeds in this precious hemisphere of ours. Thank you for what you're doing and God bless the United States of America. Thank you all very much. END 11:47 A.M. EDT THE WHITE HOUSE Office of the Press Secretary For Immediate Release May 23, 1990 REMARKS BY THE PRESIDENT AT CEREMONY TO HIGHLIGHT WORLD TRADE WEEK AND TO PRESENT "E-STAR" AWARDS The Rose Garden 2:04 P.M. EDT THE PRESIDENT: To distinguished members of Congress and other guests, welcome to the White House. It's a pleasure to have two of our administration's top trade team people here today -- Secretary Bob Mosbacher and Ambassador Carla Hills. These two are working every single day, day and night, to open markets for American goods and services. And in my view, they're successful, and I am grateful to both of them. And I also want to single out Susan Engleiter, head of the SBA here; and all members of the Congress, once again, welcome. For American business, confronting protectionist barriers is like having a door shut rudely in your face. And more and more American business is looking to Carla to open the door and Bob to help them through it. But in the end it is up to American business to step beyond the open door to enter foreign markets. And that's why I'm here today to present the "E" Awards, honoring American firms that have been such outstanding competitors abroad. Later on I'll let you know what the "E" stands for. But first -- it does not stand for Elvis, I was asked to point out. (Laughter.) Before I get to the awards, let me talk trade. I believe the protectionist path leads to closed markets, lower living standards, unemployment in our country. And so our direction is to open markets, expanding trade and negotiating a set of clear and enforceable rules to govern world trade. And this is the path to prosperity and growth and high employment. And that's why my top trade priority for this year is an ambitious multilateral agreement. We must conclude that Uruguay round of global trade talks by December. And unfortunately, world trade has outgrown the rules of the GATT, of the General Agreement on Tariffs and Trade, that served us so well for four decades. The United States and almost a hundred other nations, representing more than 85 percent of the world's trade, are working with us to revise and improve GATT's rules. And this is what we're striving to achieve. First, we seek to reform agricultural trade, a market inadequately covered by GATT rules and badly distorted by subsidies and trade barriers that cost farmers and consumers alike hundreds of billions of dollars. There simply cannot be a successful conclusion to the Uruguay round without fundamental agricultural reform. Second, we want to expand market access. We challenge our trading partners to join us in creating a world of sharply reduced tariffs. Thirdly, the United States wants to curb hundreds of billions of dollars of trade-distorting subsidies. And we believe that entrepreneurs should compete on the basis of price and quality, not on the basis of government's deep pockets. MORE - 2 - Fourth, we want to ensure that the rules we have and those that we are negotiating, apply to developing countries, so these countries are no longer at the margin of the trading system. Fifth, we want to develop fair rules for new areas -- services, investment, intellectual property -- not covered under current GATT rules. Sixth and finally, we want to create swift and effective means to resolve trade disputes. All told, we're striving to incorporate roughly $1 trillion worth of goods and services -- a third of the world's trade -- that is not sufficiently covered by rules of fair play. In our efforts, we will, of course, work closely with our friends in the Congress and the business community as well; especially the private sector advisors, many who are here today. But time is short; our task is great. I call on our trading partners to move these negotiations forward at the Organization for Economic Cooperation and Development meeting this month, and at our Houston Economic summit in early July. This round of GATT is an ambitious undertaking. The last, best chance for the world to enter the next century with free and fair trade for all. So let me be blunt: to the United States, no agreement is better than a bad agreement. Even as we're driving at full speed to complete the round, the United States is also making progress in market-opening negotiations with Japan; in keeping the flow of goods and services open with Canada and Mexico; by intensifying our dialogue with the dynamic states of the Pacific Rim; and by ensuring that America will have access to Europe after creation of this historic single market in 1992. We're also negotiating trade and investment agreements with the democratic governments of Eastern Europe and engaging in market opening initiatives with Latin America. They stand to reap enormous gains from the Uruguay round and other steps to integrate their economies into this big global trading system. But the United States will also gain from their new found freedom to invent, to invest, and to imagine. Our objective is to anchor these countries in the ideal of freedom; economic as well as political freedom. And so we're striving for free trade, not just because it is good for America, but because it is good for all mankind. As the winds of freedom blow down old barriers and liberalize markets from Managua to Warsaw, we must be prepared to take advantage of this opportunity, historic opportunity, to compete and to win. And that's why today I directed the Economic Policy Council to undertake a Commercial Opportunities Initiative to encourage American business to move competitively into foreign markets. The EPC will implement this initiative through a working group called the Trade Promotion Coordinating Committee -- TPCC -- to be chaired by Bob Mosbacher, our Secretary of Commerce. This committee will, for the first time, harness all the resources of the federal government to serve American exporting businesses. It will provide a focal point for business and industry in the markets of the world's emerging democracies. And I'm also directing the committee to promote U.S. businesses in new or neglected markets through official presidential trade missions. Missions to be headed by the Secretary of Commerce. And so that is an overview of our trade picture. And now for the "E" Awards, a word. At the height of the Second World War, "E" Awards were presented to those war plants in recognition of MORE - 3 - excellence in production. In a time of peace, we used the "E" symbol to celebrate excellence in American exports. And as it turns out, this is a very appropriate time to confer these awards. You see this week, the Commerce Department is joining with state and local governments, international trade groups and universities throughout the nation to celebrate World Trade Week. And this week I think we really have something to celebrate: last Thursday's announcement that U.S. exports in March hit $33.3 billion -- a record high. And this is yet another sign that America remains a superpower in world trade. But America's exporting strength is no accident, as all of you here today know. It's the result of the hard work of leaders, like our Secretary of Commerce, and our dynamic Trade Representative, Carla Hills, here with us here today. But first and foremost, it's because of the leadership of the American worker, the American farmer, the American entrepreneur. You and all the other "E" and "E" Star Award winners that we honor today, started the decade off in a winning spirit. And you've done something more than just represent your firms. You've represented American drive and creativity to the world. And for that you have our gratitude and my congratulations and my thanks. And so it's a pleasure now to join Bob and Carla in presenting this prestigious award for exporting excellence to 11 outstanding companies that have earned the highest level "E" Award, the "E" Star. And now, Bob, if you will take over from here. (The wards are presented.) THE PRESIDENT: Thank you all very much. Thank you for coming, and congratulations to all these winners. Now, everybody else go out there and work harder. Thanks a lot. END 2:18 P.M. EDT THE WHITE HOUSE Office of the Press Secretary For Immediate Release May 24, 1990 REMARKS BY THE PRESIDENT DURING CEREMONY CELEBRATING 25TH ANNIVERSARY OF HEAD START The Rose Garden 11:04 A.M. EDT THE PRESIDENT: Well, good morning and welcome to this beautiful morning in the Rose Garden. And Representative Kildee's here. I appreciate your coming, sir. And to others, welcome. It's a great pleasure to have you here. Connie Horner, Mary Gall -- great to see both of you. Let me congratulate you, Connie, as number two in this enormous HHS for what she's doing. And, Mary, to your continued commitment to our young. First of all, happy 25th birthday to Head Start. (Applause.) Like all birthday parties, today we celebrate both where we've been and where we will be tomorrow. In May, 1965, on a beautiful spring day right here in the Rose Garden, a great idea came into being -- President Johnson, President Lyndon Johnson first spoke of a new initiative that he would soon propose -- Head Start. And he said then that the program would -- here were his words, "rescue these children from the poverty which otherwise could pursue them all their lives. The project," he went on, "is designed to put them on an even footing with their classmates as they enter school." Since that day, Head Start has reached over 11 million children, providing comprehensive development services to nearly half-a-million low-income children every year. Head Start provides these children not only with preschool education and social skills, but with health and nutrition services as well. Virtually all of the children enrolled in Head Start get the medical attention they need. And for many children, Head Start gives them their best meal of the day. Everyone agrees Head Start is a program that works for children -- by enhancing their educational performance and really fostering success in life. Head Start also works for families, by offering child care and child development programs for parents, which builds self-confidence and by encouraging a commitment to improve their lives and the lives of the children. And it works for the thousands of communities nationwide where Head Start graduates give so much right back to society, by helping to build strong families and strong neighborhoods. Today, almost a third of the 80,000 Head Start staff members across America are current or former Head Start parents themselves -- 80,000. Parents like Eugenia Boggus, here with us today, who is now president of the National Head start Association. (Applause.) Where is she? You stand up. Thank you. (Applause.) or Claude Endfield of White River, Arizona, when she enrolled her child in a White Mountain Apache Indian Head Start program in 1973, she was unemployed. She became a volunteer at the Head Start Center, then a Head Start teacher, and today is program chairman of the Early Child Development Department at Northland Pioneer College in Arizona. Head Start, you see, gave her the skills MORE - 2 - and confidence she needed to turn her whole life around. But as vital as the parents and the staff are to the success of Head Start, we must especially congratulate the kids. Many, some of you kids here are grown up now, but they are grown up now and because they were given an equal chance at the starting block, they crossed the finish line on their own and most of them winners. Seba Johnson, for example, attended Head Start as a child in the Virgin Islands and, at the age of 14, became the first black woman skier to participate in the winter Olympics, representing the Virgin Islands. Today she lives in Nevada, where she is training for the next winter Olympics, and is volunteering her time to help celebrate Head Start's 25th anniversary. Carlos Jimenez of Meadville, Pennsylvania, who was a Head Start student back in in 1977. This year, Carlos is graduating from high school, third in his class of 320. A National Honor Society member, Carlos will attend college in California this fall. or another example, Carl Brenner, who is with us today. Carl? Where's Carl. Right here. Oh, here's our man, right here. He's now going to be performing. (Applause.) Also a Head Start alumnus. Graduated first in his high school class. Now a senior cadet out at the U.S. Air Force Academy in Colorado. These kids earned a lot of attention with their brilliant success stories. But there are also quiet ones, special children that otherwise might get overlooked. Take the example of Timothy Combs from Buffalo, West Virginia, a child born with Down's Syndrome who wasn't yet talking when he enrolled in Head Start at the age of three. Head Start provided Timothy with speech therapy, help for his hearing problem. And two years later, Timothy was able to enroll in public school, where he continues to get the special attention that began in Head Start. There are so many stories to tell, and so many Americans to thank in Head Start centers all around the country. In fact, over 600,000 committed volunteers, each one a point of light, are giving their all to make Head Start a national treasure. The kids we have with us today are from Head Start programs throughout this area -- throughout the Washington area -- and by getting them ready to learn today, we ensure that they too will have success stories to share tomorrow. It's because of children like these -- and parents and staff like many of you here -- that at the historic education summit last September in Charlottesville, I asked every governor in the nation to join in our commitment to quality programs like Head Start and give every poor child a chance to start school ready to learn. (Applause.) We proposed, our administration, the largest one-time funding increase in the history of Head Start -- a half a billion dollars. And I know that the Congress will join me in giving Head Start the best 25th birthday present possible -- enough (applause) -- And I salute Representative Kildee in this regard -- enough money to enroll as many as 180,000 more children in this successful program. As they say, that's a gift that keeps on giving -- by enriching the lives of the kids, strengthening our families, and building our communities. To everyone who has supported Head Start for so many years, thank you, and God bless each and every one of you. Thank you very, very much. END 11:15 A.M. EDT News Summary OFFICE OF THE PRESS SECRETARY THE WHITE HOUSE WASHINGTON FRIDAY, MAY 25, 1990 -- 6:00 A.M. EDT EDITION TODAY'S HEADLINES INTERNATIONAL NEWS CONGRESS COMPLETES PANAMA-NICARAGUA AID MEASURE -- Congress, anxious to leave town for a Memorial Day recess, wrapped up work early Friday on a $4 billion spending bill including aid President Bush has urgently sought for new democratic governments in Panama and Nicaragua. (AP) CHINA TRADE DECISION PUTS BUSH, CONGRESS ON CRASH COURSE -- A congressiona alliance of Democrats and Republicans, angry about China's human rights record, has vowed to thwart President Bush's decision to continue normal trade ties with Beijing. (Los Angeles Times, Newsday, New York Daily News, UPI, Copley, Reuter Los Angeles Times, Washington Times, Washington Post) KHMER ROUGE ACCEPTS THAI CEASE-FIRE PLAN -- The Chinese-backed Khmer Rouge resistance group has agreed to a Thai cease-fire plan to be signed in Tokyo next month, Deputy Prime Minister Gen. Chavalit Yongchaiyudh said Friday. (AP) NATIONAL NEWS KEMP REJECTS INCREASING TAXES, SAYS IT WOULD HURT ECONOMY -- Secretary Kemp broke ranks with the Bush Administration Thursday, insisting that the federal budget deficit "is not ballooning" and that any attempt to reduce it by raising taxes will hurt, not help, the economy. (Washington Post) NETWORK NEWS (Thursday Evening) POLL -- President Bush INTERNATIONAL NEWS A-1 continues to get high marks from American voters. NATIONAL NEWS A-14 CHINA -- President Bush said he NETWORK NEWS B-1 will continue MFN status with the government of China. EDITORIALS C-1 CAMBODIA -- President Bush said he is reviewing U.S. policy towards Cambodia. This Summary is prepared Monday through Friday by the White House News Summary Staff. For complete stories or information, please call 456-2950. INTERNATIONAL NEWS CONGRESS COMPLETES PANAMA-NICARAGUA AID MEASURE Congress, anxious to leave town for a Memorial Day recess, wrapped up work early Friday on a $4 billion spending bill including aid President Bush has urgently sought for new democratic governments in Panama and Nicaragua. The House approved the measure on a 308 to 108 vote and the Senate followed suit with a voice vote shortly after midnight. That sent the bill to President Bush, who was expected to sign it into law quickly. (Jim Drinkard, AP) SHLAUDEMAN APPROVED AS AMBASSADOR TO NICARAGUA The Senate early Friday approved the nomination of veteran diplomat and Latin America expert Harry Shlaudeman as ambassador to the Nicaraguan government of President Chamorro. The Senate acted on the nomination minutes after completing congressional action on a bill containing $300 million in aid for Nicaragua. (Reuter) PRESIDENT URGES RENEWAL OF TRADE STATUS FOR CHINA President Bush recommended renewal of Most Favored Nation trading status for China Thursday but said the Soviet crackdown on Lithuania would make it "extraordinarily difficult" to justify giving the same trade status to the Soviet Union. One week before his summit here with President Gorbachev, Bush noted that the Supreme Soviet has not yet passed legislation that would codify its recent emigration reforms into law, a prerequisite of granting MFN status Bush suggested that passage of the Soviet emigration law is not the only reason for the delay. "I think there's a political climate in this country that would make it extraordinarily difficult to grant it," Bush said, "but that is not a bridge we're having to cross at this juncture." He added that once the Soviet law is passed, "Let's hope there's some progress on the Lithuanian question, because I think many think there's a direct linkage there. And I must say, it concerns me." Meanwhile, seven conservative senators, led by Sen. Helms, sent a letter to Bush raising "profound concerns" about the results of Secretary Baker's negotiations on strategic arms last week Bush said he made the decision to grant the trade status to Beijing even though he considered China's human rights record "far from adequate. "I don't think this is a reward to Beijing," Bush told a White House news conference. (David Hoffman & Lena Sun, Washington Post, A1) - White House News Summary Friday, May 25, 1990 -- A-2 Bush Extends Favorable Trade Status For China President Bush, saying economic moves against Beijing would hurt American business and the Chinese people, announced Thursday that he would renew most-favored-nation trading status for China despite its anti-democracy crackdown. The announcement came less than two weeks before the first anniversary of the June 4 massacre in Tiananmen Square "This was a difficult decision, weighing our impulse to lash out in outrage that we all feel against a sober assessment of our nation's long-term interests," Bush told a news conference. "I concluded that it is in our best interest, and in the interest of the Chinese people to continue China's trade status. "Not to do so would hurt the United States," he said. In Beijing, the official Xinhua news agency offered no official comment from the government but the news agency belittled the campaign in the U.S. to derail China's most-favored-nation status on human rights grounds. Democrats and some Republicans in Congress vowed to overturn his decision Sen. Mitchell called the President's decision "profoundly wrong," and promised, "We're going to do everything we can to prevent it from taking effect." (Lori Santos, UPI) China Trade Decision Puts Bush, Congress On Crash Course A congressional alliance of Democrats and Republicans, angry about China's human rights record, has vowed to thwart President Bush's decision to continue normal trade ties with Beijing. Lawmakers planned to introduce measures to reverse Bush's decision, despite his claims that it would advance the interests of both the Chinese and American peoples "Sought-after trade concessions should not be given to the butchers of Beijing," Sen. D'Amato declared But Rep. Rostenkowski said that while the behavior of the Chinese leaders made the decision difficult, he would go along with Bush. "I will support the President's decision on this difficult matter in the hopes that the people of China will see their lives improved through this action,' he said. (Kenneth Barry, Reuter) China/MFN President Bush renewed China's most-favored-nation trade status Thursday, triggering outcries from Democrats and Republicans alike on Capitol Hill and setting the stage for a major confrontation with Congress over U.S. policy toward the repressive Beijing government "I don't think this is a reward to Beijing," Bush said at a White House news conference. "I think it is very important to keep these commercial contacts It is the basis of everyday trade." Speaker Foley predicted Congress would adopt a resolution disapproving of Bush's action Asked about prospects of overriding a veto of the resolution, Foley pointed to last year's House vote overwhelmingly rejecting Bush's veto of legislation to protect Chinese students in the U.S. from being forced to return home Sen. D'Amato said he could not support Bush now on the trade issue and predicted other Republicans would join him in overriding a possible Bush veto. (Gaylord Shaw, Newsday) - White House News Summary Friday, May 25, 1990 -- A-3 Bush Announces Decision To Grant China One-Year Extension of MFN Status President Bush, expressing irritation with congressional critics of his China policy, announced Thursday that he would grant Beijing a one-year extension of its preferential trading status. Making the long-expected announcement at a White House news conference, the President said the decision to renew China's MFN trade designation should not be interpreted as a sign that the Administration is unconcerned about the bloody military repression of the pro-democracy movement in Tiananmen Square nearly a year ago. "This was a difficult decision, weighing our impulse to lash out in outrage that we all feel against a sober assessment of our nation's long-term interest," said Bush Sens. Dixon and D'Amato reacted to Bush's decision by announcing that they would introduce a Senate resolution of disapproval to block MFN renewal for China "The renewal of most-favored-nation status would be interpreted as support for a brutal and murderous regime," said Dixon. "This is simply inconsistent with the American spirit." Speaker Foley criticized Bush for failing to link MFN renewal to specific improvements in China's human rights policies and warned that Bush faces a possible defeat in Congress on the issue. (Finlay Lewis, Copley) Bush To Give Trade Status President Bush Thursday provoked congressional outrage by announcing he will renew special trade benefits for China despite its anti-democracy crackdown. But Bush said he will deny the same benefits to the Soviet Union Sen. D'Amato called Bush's move a "short-sighted accommodation with a blood-stained and discredited regime," and said he will co- sponsor a resolution to prevent renewal. [And] Sen. Moynihan said it was a "profound mistake that will send a hideously wrong message to the world. At a news conference, Bush "vented a little spleen" over charges by foes that he was doing a "favor" for China. He said refusing to extend the most-favored-nation status would have hurt the Chinese people as well as American consumers and businesses. (Maureen Santini, New York Daily News, 11) China Trade Status Renewed By Bush President Bush announced Thursday that he is extending China's most-favored-nation trade benefits without conditions. He said that acting otherwise would hurt American business, workers and consumers, and he saluted China's "modest steps" to ease. human rights restrictions. While the President's decision had been anticipated, it set off a round of criticism from Republicans and Democrats. A resolution that would counter the President's move and take away the special status immediately was introduced in the Senate. Sen. Mitchell said that he would "aggressively and vigorously" try to block Bush's action. "I think he faces some very severe problems here," added Speaker Foley. As of Thursday, Foley said, Bush lacked the votes needed to sustain a veto of the resolution in the House. (James Gerstenzang, Los Angeles Times, A1) -erom- White House News Summary Friday, May 25, 1990 -- A-4 Democrats Hammer Bush On China Democratic congressional leaders bitterly denounced President Bush Thursday for renewing China's lucrative trade preference without strings despite China's continuing human rights violations. "It is inconsistent with American values, it is contrary to American interests, and it is profoundly wrong," Sen. Mitchell said in perhaps his harshest criticism ever of the President "Having made concession after concession, the President wants to make more concessions," Mitchell said as he called Bush's entire China policy "a complete failure" and vowed to do what he could to derail the extension. (Frank Murray & Chris Harvey, Washington Times, A1) BEIJING LINKED ENTIRE RANGE OF TIES WITH BUSH DECISION ON TRADE STATUS BEIJING -- China has made clear that President Bush's decision on trade relations would have bearing on political and cultural ties. Chinese officials did not immediately comment on Bush's announcement Thursday extending China's MFN status for one year But the official Xinhua news agency said, "A small number of Americans, under the pretext of so-called human rights, opposed the renewal of China's MFN status. Their arguments have been strongly rejected by the majority of American people, who cherish the long- term interests of relations between the two countries." In recent days, China indicated that raising tariffs on its goods would lead not just to higher duties on U.S. products and a sharp drop in trade, but diminished political and cultural contacts as well. (Kathy Wilhelm, AP) CHINA/FOREIGN RELATIONS BEIJING -- The Chinese government has recently been sending subtle messages of regret for its violent suppression of last year's pro-democracy demonstrations. The messages have been intended, at least in part, to quiet critics in the U.S. Congress who opposed Thursday's renewal of China's MFN trade status in the wake of June's massacre, diplomats here say. In a meeting this week with Helmut Schmidt, the former West German chancellor, Chinese leader Deng Xiaoping admitted "mistakes were made, and that the leadership deserves much of the blame for the pro-democracy movement that ended with the military opening fire on civilians last year. Also, during the past several weeks, Communist Party chief Jiang Zemin has appeared on U.S. and Japanese television, saying that demonstrations are better cleared with non-lethal force, that the purge of student leaders was over and that no criminal charges would be filed against his predecessor, Zhao Ziyang, who was ousted "These aren't apologies nor concessions," a European diplomat said. "They aren't saying that Zhao was right or that the students were right. But they are softening a bit, giving their friends something to hang their hat on." (Jim Mulvaney, Newsday) - White House News Summary Friday, May 25, 1990 -- A-5 U.S.-CHINA FRICTION HURTS JAPAN, LDP OFFICIAL FEARS A key leader of Japan's ruling LDP has warned that Japan is seriously concerned it will suffer from continued confrontation between the U.S. and China over the Tiananmen Square crackdown last June. "A continuing antagonism between China and the United States will naturally bear heavy consequences for Japan," said Michio Watanabe after a meeting Wednesday with President Bush "It would be better for all concerned if the United States does not clamp down further on the Chinese government," Watanabe added. (Gus Constantine, Washington Times, A11) BUSH PRAISED FOR RENEWING CHINA'S FAVORED TRADE STATUS TORONTO -- The governor of Hong Kong said Thursday the British crown colony would have lost $10 billion in trade if President Bush had not renewed China's most-favorable-nation trading status. Sir David Wilson said Bush's move will bolster Hong Kong's bright economic future even as it prepares for Chinese rule in 1997. "It certainly bodes well for Hong Kong and for south China, which is the most developed and developing section of China," Wilson told 1,000 businessmen at a luncheon meeting. "I was pleased that he did that. It is something which has a very marked effect on us in Hong Kong. (B.J. Del Conte, UPI) CHINA TRADE DECISION BOON FOR TOY, CLOTHES IMPORTERS NEW YORK -- President Bush's one-year extension of favorable trading status to China assures no supply disruption or price jumps in imports ranging from cashmere sweaters to teddy bears to portable hair driers, business people said Thursday. Moreover, the decision means China won't retaliate by turning elsewhere for some of the most important U.S. exports, including grain, fertilizer, aircraft, cotton and machinery. "We felt that in the interest of keeping trade lines open and allowing U.S. farm products to flow into China, it was critical that this be extended," said Jack King, spokesman for the American Farm Bureau Federation. (Rick Gladstone, Washington Post, F3) BAKER CONCESSION IGNORES STAND ON SOVIET BOMBER Secretary Baker reversed a long-standing U.S. arms control position in recent negotiations with the Soviet Union by proposing that nuclear-armed Backfire bombers not be counted as strategic weapons under the pending START treaty, according to Bush Administration officials. It had been previously reported only that Baker was unable to convince the Soviets that the bomber be limited under the treaty. In exchange for Baker's proposal, which reverses a U.S. negotiating demand dating back to 1992, Moscow would declare that the Backfire is not capable of flying intercontinental missions. But as recently as February, the Defense Intelligence Agency in a report on Soviet forces said the Backfire has "an intercontinental strike capacity when equipped with a refueling probe." (Bill Gertz, Washington Times, A3) - White House News Summary Friday, May 25, 1990 -- A-6 BUSH LINKS BALTIC STATES, TRADE DEAL FOR MOSCOW President Bush said Thursday the Soviet Union's handling of independence movements in the Baltic states could cost Mikhail Gorbachev U.S. trade benefits he wants to help resuscitate the Soviet economy. Linking the situation in Lithuania and "economic aspects of this summit" for the first time, Bush told a news conference he was not "encouraged about where it stands right now." Asked about the chances the U.S. would grant most-favored- nation trading status to the Soviet Union, a move once touted as a major feature of next week's superpower summit, Bush said, "I think there's a political climate in this country that would make it extraordinarily difficult to grant it." "Let's hope there's some progress on the Lithuanian question, because I think many feel there's a direct linkage there," Bush said. "And I must say, it concerns me." (Lori Santos, UPI) Bush Eager To 'Talk Frankly' At Summit President Bush is spending the Memorial Day weekend in Kennebunkport, Maine, boning up on the issues for his summit with President Gorbachev next week. "There's enormous problems that just need to be talked about," Bush told a White House news conference Thursday. But he hopes for "significant progress" on such issues as cuts in long-range nuclear weapons and signing a ban on chemical weapons. Gorbachev is "a man with whom we can talk frankly," Bush told the BBC Thursday. (Johanna Neuman & Mimi Hall, USA Today, 1A) EDITOR'S NOTE: "Bush Withholding Normal Trade Ties From The Soviets," by R.W. Apple, appears in The New York Times, page A1. GORBACHEV SAID TO OFFER TO MEET LITHUANIAN GOAL MOSCOW -- Mikhail Gorbachev, in an unexpected and major attempt at reconciliation with Lithuania, assured its representatives Thursday that their homeland could become independent in two or three years with his blessing if it bows to his demands now, Lithuanian sources said. In a hastily arranged private meeting in the Kremlin, the Soviet president offered to lift punishing sanctions against the breakaway Baltic republic and open talks with its government if it suspends the unilateral declaration of independence adopted in March. The Lithuanian news agency ELTA, in a dispatch from special correspondent Balys Bucelis, reported: "Gorbachev said in principle [that] he had nothing against Lithuania leaving the U.S.S.R." A participant in the talks said they marked the start of a "narrowing of differences" in the domestic political crisis Another journalist in Vilnius said he was informed by an official present at the meeting that Gorbachev spoke of Lithuania achieving independence in as little as two years. (John-Thor Dahlburg, Los Angeles Times, A1) -more- White House News Summary Friday, May 25, 1990 -- A-7 LITHUANIANS ENCOURAGED BY TALK WITH GORBACHEV MOSCOW -- President Gorbachev told a delegation of Lithuanian legislators Thursday that the breakaway Baltic republic could win independence from the Soviet Union in two or three years if it agrees to suspend its March 11 declaration of immediate secession. "I came out of that meeting feeling we are getting closer to compromise," said Lithuanian lawmaker Nikolai Medvedev after the hour-long session at the Kremlin. "It was a friendly meeting, and I left there feeling that we will all work this out as free people." Medvedev said the four-member Lithuanian delegation handed Gorbachev a copy of the Lithuanian parliament's latest resolution offering to freeze some legislation passed after the declaration of independence if Moscow agrees to negotiations on an orderly transition to full sovereignty for the republic. Gorbachev told the Lithuanians that he was aware of the resolution, but he insisted on a freeze of the independence declaration itself before any talks could begin. (David Remnick, Washington Post, A1) BALTIC STATES HOPE SUMMIT WILL REAFFIRM U.S. SUPPORT VILNIUS -- The fine print on official U.S. maps denies this is part of the Soviet Union, and when President Bush meets President Gorbachev next week, many in the Baltic republics want him not to forget it "We pin our hopes on the summit, in the sense that it will spark real negotiations between Moscow and the Baltic republics," said Sarmite Elerte, chief of the information department of Latvia's Parliament. (John-Thor Dahlburg, Los Angeles Times, A15) WITH MOSCOW, U.S. IS TAKING A DIFFERNT LINE President Bush made it clear Thursday that when it comes to linking human rights to "most-favored-nation" trade benefits, his Administration has two vastly different approaches: one for China and another for the Soviet Union This inconsistency is echoed throughout the top levels of the Bush Administration. Last week, Secretary Baker suggested that the Soviet Union would be disqualified from obtaining most-favored- nation benefits if it uses "force or coercion" in Lithuania, Latvia or Estonia. of course, force and coercion are exactly what China used against pro-democracy demonstrators a year ago. (News analysis, Jim Mann, Los Angeles Times, A1) SOVIETS SEEK AIR-TRAVEL PACT IN TIME FOR SUMMIT Soviet officials, working to salvage a U.S.-Soviet aviation agreement in time for next week's Bush-Gorbachev summit, will come to Washington this weekened in an effort to negotiate the last sticking point, U.S. sources said Thursday. The problem involves the percentage of U.S. airline tickets to be sold in rubles in the Soviet Union "We have an agreement that is 98 percent done," said a source involved in the negotiations. But the unresolved economic problem is as important as "the battery in a transistor radio.' There will be no agreement without it, he said. (Don Phillips, Washington Post, A23) - White House News Summary Friday, May 25, 1990 -- A-8 YANKING OF EMIGRATION BILL STARTLES SOVIET LEGISLATORS MOSCOW -- Soviet deputies expressed surprise Thursday at the unexplained dropping, apparently by Kremlin leaders, of a liberal emigration bill from the agenda of the Supreme Soviet -- despite earlier assurances that it would be ready in time for next week's superpower summit Nikolai Fyodorov, the chairman of a subcommittee that reviews new legislation, said that the decision to take the emigration law off the agenda was taken behind closed doors by Kremlin leaders. He described it as "undemocratic" and "unconstitutional." Western diplomats here speculated that the abrupt withdrawal of the bill could be linked to superpower maneuvering over Lithuania's bid for independence. They said that Kremlin leaders may have feared that Washington would hold the new trade agreement hostage to an ending of the Soviet Union's economic embargo of Lithuania. (Michael Dobbs, Washington Post, A36) GROUP ASKS FOR AN END TO NUCLEAR PRODUCTION A group of distinguished American diplomats and scientists asked President Bush and President Gorbachev Thursday to use the forthcoming summit as an opportunity to halt the production of nuclear materials used in weapons In a letter to the two presidents, signed by seven Nobel laureates, two former Cabinet secretaries and two former directors of the CIA, the 54 signers said, "The window of opportunity is fast closing" because the U.S is now preparing to restart the nuclear reactors "Surely this unrelenting race to produce yet more ingredients for nuclear weapons deserves serious re-examination in light of the progress being made to end the nuclear arms race," the letter stated. (Jim Anderson, UPI) BONN, MOSCOW IN TUG OF WAR OVER PRICE OF GERMAN UNIFICATION BONN -- Despite the confusing signals out of Moscow, Bonn's leaders are supremely confident that the Soviets will eventually approve unification of the two Germanys and its central sticking point, German membership in NATO. The backbone of the German confidence is an equally supreme willingness to pay for the Soviet "yes." "What we are seeing now are the birth pains of a new relationship between Germany and the Soviet Union," a top West German official said. "They know we are not willing to bring about unification without Soviet consent: And we are prepared to accept obligations in exchange for that consent." Put more plainly, "The Russians are fishing for a price the West will pay for NATO membership," said Josef Joffe, foreign editor of the Sueddeutsche Zeitung, a Munich daily. (Marc Fisher, Washiungton Post, A34) White House News Summary Friday, May 25, 1990 -- A-9 SOVIET DEPUTIES SEEK NO-CONFIDENCE VOTE OVER ECONOMIC PLAN MOSCOW -- Radical legislators called Thursday for a vote of no confidence in the government, declaring that the Kremlin's latest economic reform package would fail to extricate the Soviet Union from a deepening economic crisis. Prime Minister Ryzhkov, in a two-hour televised address to the Soviet legislature, said that citizens would receive full compensation for up to 70 percent of the huge price rises forecast under the government's plans. But he said there would be no compensation for price rises on a number of luxury items, including jewelry, liquor, tobacco and food delicacies. The no-confidence motion was announced by Gennadi Filshin, a representative of the Inter-Regional Group, a fledgling political opposition. He described the government plan as a "camouflaged attempt to double state retail prices while making no progress toward a market." (Michael Dobbs, Washington Post, A31) EDITOR'S NOTE: "Soviet Economic Reforms Called Too LIttle, Too Late," by Warren Strobel, appears in The Washington Times, page A8. KHMER ROUGE ACCEPTS THAI CEASE-FIRE PLAN BANGKOK -- The Chinese-backed Khmer Rouge resistance group has agreed to a Thai cease-fire plan to be signed in Tokyo next month, Deputy Prime Minister Gen. Chavalit Yongchaiyudh said Friday. "Everything that Sihanouk has agreed to, the Khmer Rouge has also agreed to," Chavalit said. Diplomatic sources said Chavalit this month signed separate but similar agreements with each of the factions for a cease-fire, and each group has agreed not to use the cease-fire to expand its territorial control. (Vichai Phuphatana, UPI) U.S. POLICY ON CAMBODIA REAFFIRMED Khmer Rouge Role Disturbs President After a high-level review, President Bush has reaffirmed U.S. policy toward Cambodia as the "right track" despite criticism that it indirectly aids the Khmer Rouge, Administration officials said Thursday. An official said Bush reaffirmed the policy at a May 10 National Security Council meeting that also touched on other regional conflicts. "Everyone concurred that we are on the right course" during the meeting attended by Secretary Baker and other senior officials in addition to Bush, the official said. Bush, in a news conference Thursday, called U.S. policy in Cambodia "very complicated" and said that "to the degree it has any effect to help them [the Khmer Rouge], yes, I am uncomfortable about it." He added, however, that a diplomatic compromise has track." been worked out and "at this juncture, I think we're on the right Bush said, "We are reviewing the whole policy now." However, a White House official said that, to his knowledge, no current review is taking place. He said Bush apparently was referring to the review that culminated in the May 10 NSC meeting. (Don Oberdorfer, Washington Post, A28) -970m- White House News Summary Friday, May 25, 1990 -- A-10 CONGRESS PASSES BILL WITH ISRAELI HOUSING GUARANTEES The Senate early Friday completed congressional action on a bill containing $400 million in housing guarantees for Israel to help it cope with a flood of Soviet immigrants. In line with U.S. policy, the guarantees are not to be used to support projects in the West Bank, Gaza and east Jerusalem. (Reuter) ISRAEL REJECTS PROPOSALS TO POST U.N. OBSERVERS IN TERRITORIES JERUSALEM -- Israel said Thursday that it would defy any move by the U.N. Security Council to post observers in the occupied West Bank and Gaza Strip after an outbreak of violence set off by a mass slaying of Palestinian workers by an Israeli gunman. A U.S. pledge this week to consider such an observer mission after Sunday's shooting, in which seven Palestinian workers from the Gaza Strip were killed, has signaled a worsening of U.S.- Israeli relations, Israeli government officials said. Appearing on Israeli television Thursday night, acting Prime Minister Shamir said, "I don't assume the Security Council would decide" on such a step "since it would clearly know this decision would not be implemented, as many other U.N. decisions against Israel." At a press conference earlier, Foreign Minister Arens said Israel was counting on U.S. support at a special Security Council meeting Friday in Geneva that was called to discuss the recent violence in the occupied territories Arens conceded that coordination between the U.S. and Israel has "not been as close as it had been in the past." (Jackson Diehl, Washington Post, A31) ARAFAT TRIES TO EXPLOIT KILLINGS The PLO is attempting to use Sunday's massacre of seven Palestinians by a deranged Israeli and subsequent calls for a U.N. peacekeeping force in the occupied territories to exploit heightened J.S.-Israeli tensions. PLO Chairman Arafat is expected to call Friday for a U.N. force in the Israeli-occupied West Bank and Gaza Strip when he addresses a meeting of the U.N. Security Council in Geneva. But senior PLO officials said Thursday that Arafat is willing to settle for some form of U.N. visit to investigate ways of protecting Palestinian lives, even though the U.S. has expressed a willingness to consider a presence by the U.N. "The important fact is that the Americans are willing to discuss protection of the Palestinians," said a senior PLO official, who asked that his name not be used. "The political aspect of this is that it implies criticism of Israel, legally it emphasizes that the territories are occupied. The important thing is to get the Americans on board." (James Dorsey, Washington Times, A1) - White House News Summary Friday, May 25, 1990 -- A-11 LAWMAKERS BLAST REPORT BY STATE DEPT. ON PLO House members Thursday criticized a State Department report that the PLO has apparently complied so far with its 1988 pledge to give up terrorism, calling it a "whitewash and a pack of lies." "This report is a sham and a fraud and this Administration ought to be ashamed of itself," said Rep. Lawrence Smith at a hearing of the House Foreign Affairs subcommittee on Europe and the Middle East. "This is just a pack of lies." Reps. Lantos and Gilman joined Smith in charging that Israel was the victim of a "double standard" and of a "predictable orgy of Israel-bashing" in the wake of the killing of seven Palestinian laborers Sunday President Bush called Thursday at his news conference for Israeli restraint and said he was "troubled about the loss of human life" in the territories. He added that the solution to the region's problems is to get peace talks moving. "I will do everything I can to get the talks for peace going," he said. (Nora Boustany, Washington Post, A32) CLERGY SAID TO MISUSE INDIA AID NEW DELHI -- An audit by a U.S. accounting firm has turned up evidence that some bishops, priests and nuns within India's Roman Catholic Church could have "misused" millions of dollars worth of U.S. government food donated to feed malnourished mothers and children. Indian Catholic officials have used short-weighing measuring devices for distributing food, created false lists of food recipients, improperly used donations to support commercial businesses, and deliberately concocted inaccurate records to hide abuses, according to the report by Price Waterhouse, the accounting firm asked to audit the food program by the U.S. Agency for International Development U.S. officials, who asked not to be identified, said that a definitive judgment about whether Indian Catholic officials have deliberately stolen large amounts of U.S. food was beyond the scope of the Price Waterhouse audit, which ommitted the names of any individuals involved. But they said the evidence uncovered by the audit suggested to them that significant theft and corruption had occurred. (Steve Coll, Washington Post, A1) U.S. LAUNCHES A NEW DRIVE AGAINST ILLICIT COCAINE LABS IN BOLIVIA In an escalation of the drug war in South America, U.S. agents have launched a new coordinated attack against a network of cocaine laboratories in the Bolivian jungle, provoking threats of retaliation against the American-led teams, U.S. officials said Thursday. The offensive, including night-time raids with inflatable boats in alligator-infested rivers, targets new processing plants believed responsible for one-fourth of Bolivia's burgeoning cocaine production "We're doing a lot of first-time things," said David Westrate, director of operations for the DEA The teams so far have met with no resistance in their raids on seven airstrips and three laboratories, Administration officials said. (Douglas Jehl, Los Angeles Times, A6) - White House News Summary Friday, May 25, 1990 -- A-12 CAR BOMB, ATTACK IN MEDELLIN LEAVE 5 DEAD AND 21 INJURED BOGOTA -- Terrorist attacks three days before a presidential election left at least five people dead, including two policemen, and 21 injured Thursday in Medellin, according to authorities The two policemen and two others were killed and 21 injured when a car bomb exploded at 5:40 p.m. near the Intercontinental Hotel on the southern edge of the city. (Douglas Farah, Washington Post, A32) MARION BARRY TRIAL TEST OF BUSH DRUG POLICY BOGOTA -- In the eyes of many Colombians, President Bush will be a co-defendant with Marion Barry when the Washington, D.C., mayor goes on trial next month on cocaine charges In the view of Colombians, a failure to convict Barry would raise more doubts about the sincerity of the U.S. anti-drug effort The case "creates a bad feeling in Colombia. Colombia wants to look to the United States to fight against drug trafficking," said Liberal Party candidate Cesar Gaviria, the expected winner of Sunday's presidential election. "Not one case of a kingpin being tried is known. It is difficult to understand what is happening with the mayor of Washington." (Tom Harvey, UPI) U.S. GOVERNMENT AGREEMENT TO PAY FOR NORIEGA'S DEFENSE COSTS BLOCKED MIAMI -- A deal by the federal government to pay the legal bills of deposed Panamanian leader Manuel Noriega collapsed Thursday in court when a federal judge advised both sides that the government is limited, by law, to paying a maximum of $75 an hour in attorneys' fees Under terms of Monday's agreement, the four defense lawyers understood that they could collect between $200 and $300 an hour in legal fees. Frank Rubino, lead defense lawyer, said the smaller fee was "ludicrous." (Laura Parker, Washington Post, A23) MEXICO TO EXPAND MARKETS WITHOUT EXCLUDING LATIN AMERICA BUENOS AIRES -- Mexican Foreign Minister Fernando Solanas said Thursday that Mexico does not plan to join a trade bloc with the U.S. and Canada. "What exists now is a possibility of amplifying some trade areas. It is not defined as an economic integration," or trade bloc, Solanas said in a news conference in Buenos Aires after meeting with President Menem "The intention of Mexico is to broaden markets without excluding others," he said. (UPI) White House News Summary Friday, May 25, 1990 -- A-13 GNP DISPUTED AS DEVELOPMENT INDEX U.N. Program Charges Distortion of Economic Growth Strategies Western governments and international aid organizations have done a crude job of measuring world economic and social development for decades, thus contributing to ineffective development strategies, according to a U.N. report released Thursday The report uses a "human development index" that measures peoples' fundamental quality of life according to their life expectancy, literacy and ability to buy basic goods The study, called the Human Development Report 1990 found that west and central Africa form the world's most desperate belt of want, with eight of the 10 least developed countries. According to the new measurements, the U.S. is the least developed of the major Western industrial nations. (James Rupert, Washington Post, A16) EDITOR'S NOTE: "Gorbachev Making Commitments," by Ann Devroy, appears in The Washington Post, page A36. ### NATIONAL NEWS KEMP REJECTS INCREASING TAXES, SAYS IT WOULD HURT ECONOMY Secretary Kemp broke ranks with the Bush Administration Thursday, insisting that the federal budget deficit "is not ballooning" and that any attempt to reduce it by raising taxes will hurt, not help, the economy. Kemp said he supports the current budget summit as a way to "reduce spending.' But he lamented that the negotiations between the White House and congressional leaders have turned into a "tax summit." "If no one else [in the Administration] will make the public case, I will. The transcendent issue is economic growth. Cutting taxes, not increasing taxes, is the route to economic growth," Kemp said. Kemp's comments came as the budget group held its fourth meeting on Capitol Hill The session began as President Bush praised the group's progress, but he suggested it is Congress, not he, that caused the deficit problem. "I will point out that people understand that Congress bears a greater responsibility for this,' Bush said, adding, "But I'm not trying to assign blame Those comments irked some Democrats who do not want to make any proposals in the bargaining until Bush does. (Ann Devroy, Washington Post, A1) DEMOCRATS CHARGE THAT BUSH COMMENTS SOUR BUDGET TALKS Democratic participants in the budget talks between the White House and Congress charged Thursday that President Bush "soured" the atmosphere by urging Congress to take a greater leadership role Before negotiators met, Bush told a White House news conference he believes Congress must share responsibility for proposing solutions to the deficit problem and disputed Democratic charges of lax leadership on the issue "I will point out that the Congress bears a greater responsibility for this," Bush said. "But I'm not trying to assign blame. That's why I'm doing it right now. That's why I'm saying we're going to sit and talk." Democrats were displeased with Bush's remarks but said they were not discussed during the negotiations. "It soured, I think, some of the attitude of the negotiators when we're making a good faith effort to try to grapple with this problem, to try to come up with solutions, said Sen. Sasser Rep. Panetta said Bush's comments make him "perhaps one of the first presidents in recent history to say that the Congress has greater power than the presidency in determining the course of the economy, and I don't think anybody believes that. Rep. Gephardt said "the President is wrong if he believes the budget is more the Congress's responsibility than his. It's a shared responsibility." (Bud Newman, UPI) White House News Summary Friday, May 25, 1990 -- A-15 Bush Upsets Democrats By Blaming Congress For Deficit President Bush said Thursday that the Democratic-controlled Congress bears a greater responsiblity than he does for reducing the soaring federal deficit, touching off angry denials from Democrats and renewed demands that Bush show greater leadership. Bush reiterated that he will not address the American people on the deficit until he can endorse a negotiated bipartisan solution "If I outlined the problem now, I'd rely on some of the fact that the Congress appropriates all the money and raises all the revenues," the President said. "That's their obligation People understand that the Congress bears a greater responsibility for this." Democrats instantly disagreed. Bush "should recommend what he believes is needed now," Speaker Foley said minutes after the President spoke. (William Eaton, Los Angeles Times, A38) Democrats Irate Over Bush Silence President Bush ignited Democratic tempers in Congress Thursday when he refused once again to address the public on the severity of the deficit problem or to offer proposals to solve it. Speaking at an impromptu White House news conference, Bush said Congress bears the primary responsibility for dealing with fiscal matters. He said he would not offer more detailed descriptions of the causes for the swelling deficit or make public any recommendations for a solution until after Administration and congressional negotiators reached a budget agreement. Democrats wasted little time attacking the President's statement. "Sitting at Ronald Reagan's right hand, the President learned how to duck, not how to lead," said Rep. Obey, whose views were widely echoed by Democrats in the House and Senate. "The American people have learned more about the Soviet economy over the past two days than they have about their own." (Susan Rasky, New York Times, A13) DEMOCRATS' DEFICIT CUTS DIG DEEPER THAN GOP'S Capitol Hill Democrats meeting in the budget summit with the White House want to cut the deficit by $600 billion over five years, while a key Republican said $425 or $450 billion might be more realistic. The competing figures were given Thursday after summit negotiators emerged from a three-hour closed-door meeting. (Chris Harvey, Washington Times, A4) PENTAGON TO AWAIT MISSILE SAFETY STUDY The Department of Defense Thursday said it would not remove short-range, nuclear-tipped missiles from strategic aircraft on war "alert" before the Air Force completes a special study on the possibility that they might explode in an aircraft fire DOD spokesman Pete Williams told reporters at the Pentagon that the SRAM-A "meets all our current safety standards" and "it would be unwise and premature to predict the outcome of that study and to make any decisions now before it's done" later this summer. (R. Jeffrey Smith, Washington Post, A23) - White House News Summary Friday, May 25, 1990 -- A-16 USS IOWA PROBE REVIVED; TEST BACKS ACCIDENT THEORY The Navy Thursday suspended all live firings of the massive 16-inch guns on its four World War II-vintage battleships after new testing showed that an accidental explosion could have caused the turret blast that killed 47 sailors aboard the USS Iowa in April 1989. The finding caught top Navy officials by surprise and prompted Navy Secretary Garrett to reopen the official investigation into the disaster The testing Thursday was conducted after Sen. Nunn made a strongly worded appeal May 14 to Admiral Carlisle A.H. Trost, chief of naval operations, citing results of laboratory tests by Sandia National Laboratories in Albuquerque indicating that a "high-speed overram" could lead to accidental ignition of the powder charges used in the 16-inch guns The Navy confirmed Sandia's theory yesterday at the Naval Surface Weapons Center in Dahlgren, Va. (Patrick Tyler, Washington Post, A1) GOP DUSTS OFF SUPPLY-SIDE ECONOMICS Supply-side economics -- the Reagan-era notion that government tax revenue will go up when tax rates go down -- is trying to stage a comeback, even in this era of $150 billion federal deficits. Thursday, House Republicans released a study that contended that a Democratic proposal to raise marginal income tax rates to 33 percent for the 600,000 richest Americans would slow economic growth, mean 377,000 fewer jobs and lower the take-home pay of the average taxpayer. "Those who hope to redistribute income to the poor by increasing tax progressivity may actually harm intended beneficiaries. In this case, average taxpayers end up worse off by over $500,' said a study by the Institute for Policy Innovation, a Lewisville, Tex. foundation chaired by Rep. Armey. (Steven Mufson, Washington Post, F1) REVISED FIGURES SHOW ECONOMY IS STILL SLUGGISH Deflating a recent impression that the economy was chugging along quite nicely, the Commerce Department reported Thursday that the sluggish economic growth that had set in last September had continued through the first quarter. In its second estimate of the quarter's economic growth, the Commerce Department said the GNP had expanded at an annual rate of only 1.3 percent from January through March and not, as estimated last month, at a healthy 2.1 percent. (Lousi Uchitelle, New York Times, A1) SEC LINKS SLIDE OF STOCKS ON OCT. 13, FUTURES DEALS The mini-stock market crash of Friday, Oct. 13, 1989, which drove the Dow Jones industrial average down 191 points in 90 minutes, was fueled by the combined selling of program traders in New York and futures speculators in Chicago, the SEC said Thursday. The SEC, which has criticized Chicago's low margin levels before, warned that the turbulence seen in October could return. (Stan Hinden, Washington Post, F1) - White House News Summary Friday, May 25, 1990 -- A-17 SULLIVAN SEEKING BAN ON CIGARETTE MACHINES $1.23 Billion In Illegal Sales To Youths Cited Citing the "moral outrage" of the estimated $1.23 billion worth of cigarettes illegally sold to children every year, Secretary Sullivan Thursday called for a ban on cigarette vending machines, the licensing of tobacco retailers, and tougher enforcement of laws prohibiting tobacco purchase by minors. "We have found it convenient to look the other way as cigarettes are openly sold to our nation's youth,' Sullivan said, adding that as long as children begin smoking and "become addicted before they can make a mature judgment, we will never succeed in achieving a smoke-free society." Sullivan's comments, which came before the Senate Finance Committee drew immediate criticism from industry groups, which said vending machines contribute little to the problem of underage smoking. And his legislative proposals were attacked by some members of Congress as inadequate and contradicted by other Bush Administration policies. "A much stronger effort is required to achieve adequate enforcement," Sen. Kennedy said. "But Secretary Sullivan's half- hearted pan to reach this goal is certain to be ineffective." (Malcolm Gladwell & Anne Swardson, Washington Post, A3) EDITOR'S NOTE: "Most States Shrug Off Cigarette Sales To Kids," by Karen Goldberg, appears in The Washington Times, page A6. SENATE VOTES TO PROTECT RETARDED FROM EXECUTION The Senate voted Thursday to forbid federal courts from imposing capital punishment against the mentally retarded as it moved toward approval of a major expansion of death penalty provisions in federal law. While agreeing to protect the retarded, the Senate approved major new restrictions on appeals by death row inmates and it turned back an attempt to prohibit capital punishment in cases in which there is evidence that race was a factor in sentencing. It also voted to lower from 18 to 17 the minimum age at which a defendant can be sentenced to death. (Helen Dewar, Washington Post, A7) HOUSE DEMOCRATS ASSAIL JUSTICE AGENCY OVER SENTENCING FOR CORPORATE CRIME Democrats on a House Judiciary subcommittee challenged the Justice Department's explanation of why the agency rescinded its longstanding support for proposed tough new guidelines governing criminal sentencing of corporations. During the sometimes contentious questioning, the subcommittee's chairman, Rep. Schumer, suggested that, in fact, Attorney General Thornburgh ordered the endorsement withdrawn because business lobbyists, who vehemently oppose the guidelines as being too strict, had pressured the White House to intervene But a White House spokesman said Thursday that "It's simply not true" that the White House requested any changes in the sentencing guidelines. "The charge is groundless." (Paul Barrett, Wall Street Journal, A18) - White House News Summary Friday, May 25, 1990 -- A-18 BUSH VETOES AMTRAK AUTHORIZATION BILL President Bush vetoed Thursday legislation to increase federal money for Amtrak, saying "an unprecedented new regulatory requirement represents a step backward for the entire railroad industry." In a letter to Congress, Bush said the proposed provision that would tighten the regulation of takeovers of freight railroads by non-railroad entities represents an "unwarranted roadblock to financial restructuring." "There is already adequate authority to protect the public interest in acquisition situations," said Bush The House, which passed the bill 322 to 93, is expected to be able to muster the necessary two-thirds vote for a veto override. But it is uncertain if the Senate will be able to do so. (UPI) FAA REBUKED FOR REMOVING CONTROLLERS Discrimination Cited On Insulin-Dependent The FAA came under congressional fire Thursday for removing air traffic controllers who are dependent on insulin from their jobs. "That's discrimination," said Rep. Gerry Sikorski at a House civil service subcommittee hearing. "That's discrimination in favor of safety, sir," said Dr. William Hark, manager of the FAA's medical specialties division. Sikorski accused the FAA of disqualifying controllers based on fear, rumors and a false report that a controller had been incapacitated by diabetes and found lying on the floor of his control tower. (Judith Havemann, Washington Post, A19) U.S. FACES $150 BILLION IN TOXIC CLEANUP COSTS Every Large Agency Involved, CBO Says The federal government owns or is responsible for thousands of facilities and sites contaminated by toxic wastes and faces long-term cleanup costs of more than $150 million, the Congressional Budget Office said in a report released Thursday. In addition to the well-documented environmental liabilities at the Energy Department's nuclear weapons manufacturing plants, the report said nearly every large government agency owns sites that it is legally responsible for cleaning up At some facilities, such as portions of the Energy Department complex at Hanford, Wash., radioactive contamination is so extensive that "complete cleanup may technically and economically unfeasible," the report said. (Thomas Lippman, Washington Post, A19) - White House News Summary Friday, May 25, 1990 -- A-19 DEM CHAIRMAN SAYS AILES CONNECTED WITH HORTON ADS COLUMBUS, Ohio -- Democratic state chairman James Ruvolo said Thursday he will ask the FEC to investigate the connection between Republican political consultant Roger Ailes and the notorious "Willie Horton" campaign ads of the 1988 presidential campaign. Ruvolo told reporters he has proof of an illegal connection between Ailes and a Bush-Quayle political action committee that produced television advertisements featuring furloughed murderer Willie Horton. Ruvolo, who planned to file his complaint Friday with the FEC, said the ads were racist, and noted that Ailes is now working for Republican gubernatorial nominee George Voinovich. (Lee Leonard, UPI) 3 GOP NATIONAL COMMITTEES OUTSPEND DEMOCRATS, FEC SAYS The three national Republican campaign committees raised $113 million over the first 15 months of this election cycle, more than four times the $24 million contributed to rival Democratic committees, according to FEC figures released Thursday. In an effort to bolster its fund-raising image, the Democratic National Committee, which reported $8.8 million in contributions for the period, announced Thursday that it received another $3.6 million in so-called "soft money" donations from unions, corporations and individuals through April. Soft money contributions are not subject to federal regulation or included in FEC reports. "The FEC figures shortchange our success," said Michael McCurry, DNC communications director Mary Matalin, chief of staff at the RNC, said her committee, which raised $43.2 million in the 15-month period, raised another $11.6 million in soft money through April -- about 21 percent of its total. (Charles Babcock, Washington Post, A13) EDITOR'S NOTES: "Profiteering In The Parks?" by John Lancaster, appears in The Washington Post, page A19. "wife of Aide Cut Down with Reagan Scoring Hits Against The Gun Lobby," by Philip Shenon, appears in The New York Times, page A18. "McFarlane Says Weinberger Libeled Him In Recent Book," by Roger Cohen, appears in The New York Times, page A19. -End of A-Section- NETWORK NEWS Thursday evening, May 24 POLL NBC's Jane Pauley: President Bush continues to get high marks from American voters in our latest NBC News/Wall Street Journal poll. Almost 3/4 [72 percent] approve of the job he's doing; [21 percent disapprove.] And 2/3 [68 percent] say they have positive feelings about him; [16 percent have negative feelings.] For Dan Quayle it's a very different story. Only 29 percent have positive feelings about the Vice President; [37 percent have negative feelings.] And when asked who they would prefer as Bush's running mate in 1992, Quayle or Secretary Baker, Baker is preferred almost two-to-one [47 percent to 25 percent.] Our poll also found that the President has lost a little ground with American voters when it comes to handling the economy. That's not surprising given the challenges he faces. (NBC-11) NBC's John Chancellor comments that the latest NBC News/Wall Street Journal poll shows that voters not only think a tax increase is on the way, most of them would not blame President Bush if taxes went up. The public is divided on the merits of more taxes, but the number of voters who say taxes should be raised has increased significantly in the last month. My view is that the cost of the S&L crisis is a factor in the public's new mood, and there's a new mood among some senior Republicans. Sen. Dole and Rep. Michel have been talking about raising additional revenue. Many people now believe that something serious needs to be done about the deficit and that nothing serious can be done without taxes being part of the package. Spending cuts alone won't do the job. When the President was asked today about his famous pledge, "Read my lips. No new taxes,' all he would say is, "Things are complicated out there." The new poll makes them less complicated because it makes raising taxes less dangerous politically. Pauley: One more finding of our poll. Mikhail Gorbachev remains highly popular with Americans. As next week's summit approaches, 59 percent give him positive marks. The poll was conducted last weekend among 1,000 registered voters. (NBC-12) CHINA ABC's Peter Jennings: President Bush announced today that he will continue most-favored-nation trading status with the government of China, which means that China, like America's other large trading partners, will continue to benefit from the lowest possible trade tariffs. There was pressure on the President not to do this, but at a news conference this morning Mr. Bush said that punishing the Chinese government for its anti-democratic behavior would hurt American business, and that in his view economic contexts were the best way to promote reform in China. (ABC-2) -елош- White House News Summary Friday, May 25, 1990 -- B-2 Pauley: President Bush had to make what he called an agonizing decision today -- punish the Chinese government or preserve the jobs of its people, and American jobs. The issue, renewing China's trade status as most-favored-nation. The President decided that that was the way he had to go, just 11 days before the anniversary of the Tiananmen Square massacre. NBC's John Cochran: The images of Tiananmen Square and the repression that followed aroused emotions in the U.S. President Bush has always said he is not a very emotional person, and today he emphasized that he tried to be calm and collected when he decided to renew most-favored-nation trading status for China. (President Bush: "And this was a difficult decision, weighing our impulse to lash out in outrage that we all feel against a sober assessment -- weighing that against a sober assessment of our nation's long-term interests.") If the U.S. were to take away most-favored-nation status from China, that would result in new American tariffs on Chinese imports like Barbie dolls. And the President said China would retaliate. (President Bush: "China buys about $6 billion a year of American aircraft and wheat and chemicals, lumber and other products. Lose this market and we lost American jobs: aircraft workers in the west, farmers in the great plains, high-tech employees in the northeast.") Bush's decision was welcomed at an electronics firm which expects to sell about $25 million in robotic parts to China this year. (John Fuller, Foxboro Company: "By enabling us to continue to do business in China with the Chinese they will be exposed to the American economic system.") In Congress today some Democrats and Republicans said Bush should have punished China. (Sen. D'Amato: "I don't want and think that we should be giving comfort and support to the slavery, to the enslavement of Chinese people.") (Sen. Mitchell: "The answer is not more concessions. That doesn't make sense. It does not serve American interests.") (President Bush: "And what irks me is when some of the people up on the Hill accuse me of being less interested than they are in human rights.") But Bush is confident he has the votes in Congress to put down any attempt to take away China's trading privileges. (NBC-2) CBS's Dan Rather: President Bush today renewed China's most- favored-nation trade status, saying it was the best way to promote the reforms for which the victims of Tiananmen Square gave their lives. At the same time Mr. Bush indicated he will not grant that same trade status to the Soviet Union, not at least now because of human rights problems there. The China decision set off an uproar in Congress which could overrule the President. CBS's Lesley Stahl: The President's decision ran into an immediate bombardment of criticism from Congress today, but the White House is still betting that the reaction will not be as intense nor as politically damaging as it was last year when he sent officials on a secret mission to Beijing shortly after the massacre in Tiananmen Square. Mr. Bush cited mainly economic reasons in defending his decision to renew the special trade concessions for China. -erom- White House News Summary Friday, May 25, 1990 -- B-3 Stahl continues: (President Bush: "Isolation is bad, and economic involvement is good. And economic -- the whole fact that we've had economic involvement I think has moved China more towards reform than if we hadn't had it.") The President claimed that Chinese intellectuals favor his decision. (President Bush: "Students in China, according to our ambassador, want to see this MFN continue.") But Chinese students in the U.S. were quick and harsh in disagreeing. In a press release, they said the Goddess of Democracy is weeping, and protested that the hard-liners in Beijing will use the President's decision to consolidate their power. (Shen Tong, Democracy for China Fund: "President Bush on the one hand publicly says he will support the human rights struggle for China, for our movement. On the other hand he constantly did a lot of things against what he said publicly.") The White House may have miscalculated the depth of outrage in Congress. (Sen. Mitchell: "The President's repeated concessions to the Chinese government have been met with intransigence. The answer is not more concessions. That doesn't make sense.") (Sen. D'Amato: "We'll trade with any killer, that we'll give any pirate, any bandit, anyone on the altar of political expedience the opportunity to do business with us.") Congressional leaders predict that majorities in both Houses are so incensed they'll vote to rescind the special trade status. But officials here say that Mr. Bush took his action only after being assured that Congress could not override a veto. (CBS-2) CAMBODIA Jennings: Just one other note from the President's news conference. Mr. Bush said he is reviewing U.S. policy towards Cambodia. The U.S. provides aid to the non-communist coalition that's been trying to overthrow the present Cambodian government. When Mr. Bush was asked about reports that this has the side effect of helping the murderous Khmer Rouge, also trying to overthrow that government, he said, "I am uncomfortable about it and we are reviewing the whole policy." (ABC-4) U.S.-SOVIET SUMMIT Jennings: Having dealt with China at his news conference, the President moved on to the much more complicated relationship the U.S. has. with the Soviet Union. Mikhail Gorbachev arrives in Washington next Wednesday evening. ABC's Brit Hume: With less than a week to go before the summit the President suddenly seemed worried that people would expect too much from him, perhaps because of the headway on a strategic arms deal his Secretary of State brought back from Moscow last weekend. (President Bush: "I don't want to over-promise, but I don't want to act like I think it's just, you know, some kind of a dance out there on this meeting. Because what we're going to talk about is really substantive. We've got a lot of things that I think will be seen properly as progress. But there's enormous problems that just need to be talked about where I can't say there'll be an answer.") - White House News Summary Friday, May 25, 1990 -- B-4 Hume continues: The President cited differences with the Soviets over German unification and lack of progress on reducing both sides' troops, tanks, and guns in Europe despite all the changes there. (President Bush: "I'll tell you what troubles me is that we're not -- somebody asked the question here -- not further along on conventional forces. And I think it does send a bad signal if the Soviets look like they are refusing to go forward and don't want to take full forces out of countries in accordance with previous deals.") The President was gloomy as well about breakaway Lithuania, where continuing Soviet pressure has made a deal for increased U.S.- Soviet trade politically impossible in this country. (President Bush: "I can't tell you I'm encouraged about where it stands right now. I have told you, told the American people, that this Lithuanian situation does cause certain tensions.") It's hard to know how seriously to take all this. With Mr. Bush lowballing the expectations, it might not take much give from the Soviets at the summit to create the appearance of major progress. Remember how Mr. Bush stole the show from Gorbachev at Malta by making unepected concessions. (ABC-3) LITHUANIA Pauley: The latest on Lithuania's standoff with Moscow. Soviet President Gorbachev hinted at a compromise today. He told a Lithuanian politician that the republic could win independence in two or three years if it suspends its declaration of independence. The Lithuanian's response, "We'll think about it." (NBC-4) USS IOWA Jennings: The U.S. Navy came as close as it ever has today to admitting that it botched the investigation into what caused the explosion oboard the USS Iowa last April, that it missed the truth. What it said, the explosion was most likely caused deliberately by gunners mate Clayton Hartwig, one of the 47 sailors to die. There was widespread cynicism about the Navy's investigation from the very beginning, about its methods and its conclusions all the way down the line. Today following new tests the Navy says it will reopen the case, which it had closed, and after an incident with gunpowder today has ordered that no more of the big 16-inch guns on any battleship be fired until further notice. ABC's Bob Zelnick reports that until today the Navy had claimed its strongest evidence that gunners mate Hartwig deliberately caused the explosion was the discovery of the remains of a foreign chemical device in the gun. But ABC News has learned that new tests by the highly respected Sandia Weapons Laboratory found no foriegn chemical substance. The tests, ordered by a skeptical Senate Armed Services Committee, found only materials common throughout the ship. The Navy said it had ruled out all causes except for an intentional act. Sandia's scientists concluded it could have been accidental. They were able to duplicate the explosion using the Iowa's own gunpowder together with the ramming device used to pack the powder in the gun. Sandia concluded that friction caused by an overextended rammer could have caused the blast. - White House News Summary Friday, May 25, 1990 -- B-5 Zelnick continues: The Navy was conducting its own tests of the accident theory today at the naval weapons station in Virginia, when an unexplained ignition occurred in one of the powder bags. It was a powder bag that exploded aboard the Iowa. And as a safety precaution the Navy suspended the live firing of 16-inch guns on all four battleships. Critics say the Navy owes Clayton Hartwig's family an apology. The Senate Committee devastated the Navy's technical case. Earlier, a House committee had all but destroyed the Navy's psychological theory that Hartwig had been driven to suicide by the collapse of his relationship with fellow Iowa sailor Kendall Truitt. Veteran Pentagon observers could recall no similar occasion when a major military investigation appeared to miss the mark by so much. (ABC-Lead) Pauley: It was a startling turnaround today by the U.S. Navy. More than a year after the deadly explosion aboard the battleship Iowa and many months after concluding the blast was probably set off intentionally, the Navy is reopening the investigation on indications it could have been an accident. (NBC-Lead) Rather: The U.S. Navy was forced tonight to reopen the investigation into last year's fatal explosion aboard the USS Iowa. The Navy also ordered an immediate halt to firing the big guns aboard all U.S. battleships. This is the first indication Navy brass may be backing off its insistence that the Iowa blast was deliberate and blaming it on one of the 47 sailors who died in the explosion. (CBS-Lead) ISRAEL Jennings: There is new tension today in the relationship between the U.S. and Israel. It grows out of the violence last weekend. Seven Palestinians were murdered and then others who were demonstrating were killed and several hundred were wounded. Now the State Department has indicated that U.N. observers might be useful in the occupied territories. Israel strongly disagrees. ABC's Dean Reynolds reports that the continuing violence is what moved the Bush Administration to say it would consider supporting the use of a U.N. observer team in the occupied territories. The Palestinians continue to be killed and wounded despite Israel's assurances that its military is acting with utmost restraint. But Israel is dead-set against U.N. observers in what it regards as its own backyard. (Foreign Minister Moshe Arens: "No, Israel would not accept U.N. observers on territory under Israeli control. Those people who incite the violence in the area and engage in violence in the area would feel encouraged.") Israelis are afraid the Palestinians would use the U.N. as a way to loosen Israel's grip on the terrotiries, making it possible for Palestinians to negotiate their future with the U.N. instead of Israel. The Palestinians say Washington's consideration of the U.N. observer idea is a plus. The turmoil has moved other nations to send their own observers here. A French team toured Gaza today, and tonight a Soviet delegation arrived to visit the occupied territories. All of this attention is affecting Israel. -erom- White House News Summary Friday, May 25, 1990 -- B-6 Reynolds continues: Tonight, when Palestinians defied a curfew in Gaza, the army steered clear in accordance with brand new orders restricting the use of force. That response to international pressure might quiet things down a bit, but the bloodshed this week has simply put the problem back in the world spotlight and shown once again how far it is from a solution. Jennings: From the American point of view this new level of violence -- six Palestinians killed and 650 wounded by the army in a single day last Sunday -- is a powerful argument for Israel to sit down and talk with the Palestinians. ABC's John McWethy: It is especially the reports of Palestinian children being killed that are moving President Bush to slightly toughen U.S. policy toward Israel. (President Bush: "I am troubled about the loss of human life in this area. I am deeply troubled about -- well, totally human life, but I think particularly of children in this kind of situation.") Despite strong Israeli objections American officials say that tomorrow in Geneva at the U.N. Security Council meeting the U.S. will not stand in the way of an Arab-backed resolution to send U.N. observers to inspect the West Bank and Gaza. (State Department spokeswoman Tutwiler: "Let me remind you, which I know you know, that U.N. officials have visited the occupied territories before to investigate the situation.") The U.S. reportedly will veto any tougher resolutions calling for a permanent observer group in the occupied territories. Even so, American officials are well aware that the milder measure is still sending a strong message to Israel that the Bush Administration is finding the violence plus Israel's refusal to sit and negotiate with the Palestinians less and less tolerable. (ABC-7) NBC's Martin Fletcher reports that aides to Prime Minister Shamir believe President Bush is using the idea of a U.N. observer group as yet another stick to beat Israel. They believe Bush just doesn't like Shamir and that's affecting U.S. policy. Bush says he just wants to get peace talks going, and he's also worried about the surge in violence in the occupied territories. (President Bush: "I am troubled about the loss of human life in this area, particularly of children in this kind of situation.") Today in one clash three Palestinians under 10 years of age were hit by rubber bullets. One is seriously wounded. And a five- month-old Jewish baby was hit in the head by a rock thrown by Palestinians. But the violence is just the latest strain in the relationship between America and Israel. The root of the problem between Jerusalem and Washington is that Prsident Bush just doesn't believe Prime Minister Shamir seriously wants to talk peace with the Palestinians. And until he does things can only get worse. (NBC-3) ECONOMY Rather: It turns out the U.S. economy was growing a lot more slowly in the first quarter of the year than the government first reported. New facts and figuring today indicate that the GNP grew at an annual rate of just 1.3 percent. Inflation, as measured by the GNP, was running at an eight-year high -- 6.7 percent. (CBS-5) - White House News Summary Friday, May 25, 1990 -- B-7 CLEAN AIR Pauley: After a 13-year battle the House has voted overwhelmingly to approve the clean-air bill, but some big questions remain. Just how much will clean air cost, and exactly who will pay for it? NBC's Andrea Mitchell reports that Congress' sweeping clean-up bill could cost $21.5 billion -- higher prices for cars, gasoline and utility bills in return for less smog, less toxic fumes, less acid rain. Automobiles. The government says tougher curbs on tailpipe emissions, the first in 20 years, will add at least $100 to the price of a new car. The auto industry says the cost will be even higher. Three-hundred-thousand new cars which can burn clean fuel will have to be built at great expense and sold in Los Angeles by 1997. That was a last-minute cave-in to the auto industry. Gasoline. By 1992 all cars in the nine cities with the worst smog will have to burn cleaner gas. Toxic chemicals. Plants ranging from big factories to small dry cleaners will have to install technology over the next 10 years to control poisonous fumes. The goal, reducing at least 2,200 yearly cancer deaths attributed to toxic emissions. Acid rain. Utilities would have to cut their sulfur dioxide emissions in half over the next 10 years. Electricity bills in some areas could almost double. This bill is already in trouble, because it includes payments to workers who lose their jobs as industries are forced to clean up. The White House says that would simply cost too much and is threatening a veto. (NBC-5) SMOKING Jennings: There was a call today for new laws to protect children from tobacco. Forty-four states already have laws that are supposed to prevent children from buying tobacco. HHS Secretary Sullivan has told Congress that all states should have them and should take even stronger action. ABC's Sheilah Kast reports that Sullivan says state laws against selling to minors are rarely enforced. (Sullivan: "It is a moral and medical outrage that our society permits so many of its children to have such ready access to a product that does so much harm.") Sullivan wants the states to regulate licenses and cigarette machines. But some congressional Democrats say he's passing the buck. They want a federal law. (Rep. Atkins: "The Administration is trying to have it both ways by placating the American citizen with soothing words about health while winking to the cigarette industry that no federal action will be forthcoming.") The tobacco industry said Sullivan's proposals will not work. The strength of the tobacco lobby guarantees a struggle over federal or state action. (ABC-5) Pauley reports that Sullivan's stand was criticized by Democrat Edward Kennedy who called it ineffective and half-hearted. Kennedy said the problem is national and should be addressed at the federal level. (NBC-6, CBS-4) -970m- White House News Summary Friday, May 25, 1990 -- B-8 DEATH PENALTY Pauley: The Senate voted today to block the use of the death penalty against the mentally retarded. That would reverse a Supreme Court decision of last year. Sen. Biden argued, "Just because the Supreme Court says we can do it doesn't mean we should." (NBC-10, CBS-10) SKIN CANCER Pauley: Federal health officials today issued a summertime skin cancer warning saying Americans should cut down on sunbathing. They said that in the past decade the death rate from the most deadly form of skin cancer linked to some exposure, melanoma, rose more than 25 percent. (NBC-7) NATIONAL PARK INCOME Rather: President Bush's Interior Secretary Lujan today proposed raising the fees on private operators of hotels and other concessions allowed in national parks. Lujan said the fees should go up for park upkeep. This follows a report showing the Park Service got only $13 million out of the $506 million private business made off the public's parkland in 1988. (CBS-6) BOMB Rather: A bomb blast ripped open a car in Oakland, CA, today. Two people inside, a 30-year-old man and a 40-year-old woman were injured. Both are environmental activists involved in a protest against cutting down redwood trees in Northern California. The woman reportedly had received death threats. (CBS-7) -end of B-section- EDITORIALS/COLUMNISTS BUDGET SUMMIT Reading Wall Street's Lips -- Raising taxes, which now seems more politically possible than at any time in recent years, is good for the stock market. It would tend to reverse [many] pernicious [economic] trends and could provide a psychological boost as the country appears finally to be solving one of its worst domestic difficulties. Quite apart from any political reservations Bush may feel about taxes and government, he has attributed much of his opposition to tax increases to his worry that they would tend to stifle the economy. The alternative, however, is to force the Federal Reserve System to address another consequence of persistent deficits, inflation, with a stringent monetary policy that could be harsher on the economy than the effects of a tax increase." (Boston Globe, 5/18) Bush Should Go On TV And Let Us Read His Lips -- " The President should be ready and willing to start building a consensus for the hard choices that deficit reduction will demand, even if the details aren't set yet. That would help commit both sides to a successful outcome and prepare the American people for the sacrifices they will have to bear. Bush says a speech would unduly alarm the financial markets by overdramatizing the deficit problem, with painful consequences. That's an unnecessary fear: If the Administration marched out, flags flying, to fight the deficit, there would be no louder huzzahs than from the business and financial communities." (Newsday, 5/17) The Deficit -- Let's Cut Spending To Fix It -- " The federal government must now decide whether to help or hurt a nation struggling to regain its competitive edge. Will Congress spend less, thus helping Americans adjust to competition? or will Congress demand more, further cutting the income of people who have already tightened their belts considerably? Americans have answered those questions over and over again -- poll after poll, presidential election after presidential election. They want the federal government to cut spending. Why doesn't the federal government just do it?" (Charleston Daily, 5/17) Read My Lips: 'Boooo!' -- "George Bush doesn't want to frighten you. Sure, he's worried about the budget deficit, and he's asked a lot of leaders from Congress, even mean ol' Democrats, to worry with him. But he doesn't want you to worry. Not yet, anyway. The mean ol' Democrats want to shove him in front of the TV cameras right away and make him say the economy is going to hell in a handbasket. They'd probably even like to make him cry right there on national television! But George knows that would frighten you. Heck, it might even frighten The Markets, and if that happened the economy really would go to hell in a handbasket George went on television to say that he wouldn't go on television because 'I don't want to inadvertently send the wrong signals to The Markets. The Markets didn't know what to think. They didn't go up and they didn't go down. And the budget deficit? It just kept on getting bigger -- which would frighten us if we were really paying attention." (Louisville Courier Journal, 5/17) -елош- White House News Summary Friday, May 25, 1990 -- C-2 The Solution: Spend Less -- " Instead of looking for new taxes, government should look for ways to trim spending. In Washington, one of those is by sticking to not only the provisions but the intent of the Gramm-Rudman-Hollings Balanced Budget Act Instead of looking for the President to give his blessing to a tax increase, congressional leaders should gird their loins and take battle-axes to the deficit in their own appropriations process. If they cannot make Gramm-Rudman work, the Balanced Budget Amendment is still lurking off in the corner, waiting to be given new life.' (Sunday Chieftain, New Mexico, 5/13) A Budget Opening -- " In a $6 trillion economy, what counts is not hitting the target precisely but a national policy that keeps reducing the deficit over the long term. To do that, the summit must produce a multiyear plan for spending and taxation that charts a sound fiscal policy and a set of priorities for the challenges of the 1990s. That should include higher revenues from closing income tax loopholes and bigger taxes on gasoline and spending cuts in programs such as farm price supports. Equally important, the policy that emerges should present a blueprint for redirecting the nation's resources from the Cold War to the investments -- in education, infrastructure, scientific research and in dealing with the problems of children and the inner cities -- necessary to build equal economic opportunity at home and competitive vigor abroad." " (Sacramento Bee, 5/11) A Balancing Act -- " If President Bush, who made 'no new taxes' the centerpiece of his presidential campaign, is willing to consider the dreaded 'T word, the least they can do is ponder several options. The most likely revenue sources under discussion will be value-added taxes, more user fees and higher taxes on gasoline, liquor and cigarettes. A combination of some or all of these revenue enhancements, coupled with significant spending cuts, could produce the 1991 savings required by Gramm-Rudman without raising income taxes. And indeed, an income tax increase at this point would be a mistake. It would stunt economic growth overall and slow new jobs creation. " (Torrance Daily Breeze, 5/11) Read Our Lips -- " No doubt trimming the deficit will be painful all the way around, whether the medicine is in the form of spending cuts or tax increases, or, more likely, a combination of both. But the President has to be careful. The problem is not that Washington has too little money. It spends too much money. If there are to be more taxes, they should come as the last resort, and Bush should have an ironclad way of making sure they will go only toward deficit reduction. Otherwise, people might start wondering which side of the mouth we're supposed to 'read my lips' on." (Birmingham News, 5/10) -end of News Summary- Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 04. Note Handwritten notes of Presidential Phone call with President 05/25/90 (b)(1) Endara (1 pp.) Collection: Record Group: Bush Presidential Records Office: Office of the President Series: Daily Files Subseries: WHORM Cat.: File Location: Friday, May 25, 1990 Date Closed: 5/7/2010 OA/ID Number: 90548-007 FOIA/SYS Case #: 2009-0166-S Appeal Case #: Re-review Case #: Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 05. Note Handwritten notes of Presidential Phone call with Violetta 05/25/90 (b)(1) Chamarro (1 pp.) Collection: Record Group: Bush Presidential Records Office: Office of the President Series: Daily Files Subseries: WHORM Cat.: File Location: Friday, May 25, 1990 Date Closed: 5/7/2010 OA/ID Number: 90548-007 FOIA/SYS Case #: 2009-0166-S Appeal Case #: Re-review Case #: Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. Presidential Phone Calls III STATE DATE: 5-25 TIME: 8AM, incoming/outooing WITH: Jach Stuin SUBJECT: touch base will serve atun Discussed IsPact - 1 Hes very helpful - Bush Presidential Library Photocopy FOLLOW UP: Bush Library Photocopy George Bush Handwriting Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 06. Form Request for Appointments [redaction of personal 05/25/90 (b)(6) information] (1 pp.) Collection: Record Group: Bush Presidential Records Office: Office of the President Series: Daily Files Subseries: WHORM Cat.: File Location: Friday, May 25, 1990 Date Closed: 5/7/2010 OA/ID Number: 90548-007 FOIA/SYS Case #: 2009-0166-S Appeal Case #: Re-review Case #: Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile Foved.19 5.11 REQUEST FOR APPOINTMENTS To. Officer in-charge Appointments Center Room 060, OEOB Please admit the following appointments on Friday, May 25 19 90 for The President (NAME OF PERSON TO SE VISITEDI of White House (ASENCY) PRUNIER, JOHN PRUNIER, GEORGETTE PRUNIER, DANIELLE PRUNIER, CHRISTINA (b)(6) PRUNIER, JULIETTE PRUNIER, SUZANNE PRUNIER, JOHN Bush Presidential Library Photocopy Thank you. MEETING LOCATION Building WHITE HOUSE Requested by DEBBIE ROMASH SOU NORTHWEST Room No. EAST VING GATE - Room No 100 Telephone x2322 Time of Meeting 7:30 a.m. Date of request 5/11/90 Additions and/or changes made by telephone should be limited to five (5) names or less. APPOINTMENTS CENTER: SIG/OEOS - 395-6046 or WHITE HOUSE - 458-6742 UNITED STATES SECRET SERVICE SSF 2037 (03-81) FROM THE WHITE HOUSE WASHINGTON. D.C. The Honorable John Chafee Brownings Beach Road Matunuck, Rhode Island 02879 5-25-90 Chate - So may thanks! (attachn Recover Fast we need'yo Love to Gring - as B, NOTE TO RECORDS: Please make sure Senator Chafee gets enclosed copy bcc: Governor Sununu Fred McClure Jan The Dallas Morning Nelus Friday, May 25, 1990 H THE TEXAS POLL: GOVERNOR'S RACE Voter opinion of candidates Favorable Favorable 43% 39% Unfavorable Unfavorable 31% 39% Recognize but don't know Recognize but don't know 22% 20% Don't recognize Don't recognize 4% 2% Clayton Williams Ann Richards Do you think that Clayton Williams' joke on rape or his comments about prostitution have made it less Do you think Ann Richards' refusal to say whether likely that you will vote for him, or have they not or not she used drugs 10 years ago has made it less likely that you will vote for her, or has it not made any difference? made any difference? Less likely to vote for him Less likely to vote for 33% 23% No difference No difference 61% 73% Undecided Undecided 6% 4% GUBERNATORIAL GENDER GAP* Percent of support for Clayton Williams Percent of support for Ann Richards Male Male 54% 32% Female Female 39% 43% "The rest are undecided PRESS COVERAGE If a candidate for public office makes a racial, reglious or sexual joke in an informal setting, should the press report the candidate's comments? Yes 51% No 38% Undecided 11% Statewide survey conducted April 28-May 12. Margin of error: plus or minus 4 percentage points. Gender gap question has a margin of error of plus or minus 6 percentage points. Totals have been rounded. SOURCE: Harte-Hanks Communications Inc. The Dallas Morning News X Dear m. President, Thank you very much for sending your baseball card looks very me your card. I'll put it with my spiffy, I must say. The yale unform 1958 Roy Sievers as one of my two then really was classic. "heepers." your statistics are pretty snaggy, too. I wonder if you know what a Glad you and augus Phillyps productive hitter you were. Over a fall had a good time bass fishin'. season (600 at bats). your senior year stats would have been 104 runs, 97 rbi, Thanks again, 41 doubles, 14 triples, 7 homers. maybe Jone Boswell Ethan allen should have had you hitting THE PRESIDENT HAS SEEN in the heart of the or order! (For your full yall career, per 600 ABs, 106 runs, ar 80 rbc, 24 stolen bases. not too shabby.) THE WHITE HOUSE WASHINGTON May 8, 1990 MEMORANDUM FOR BRIDGET MONTAGNE FROM: DEBBIE ROMASH RE: SPECIAL VISITORS The Prunier family will be visiting Washington, DC on Friday, May 25, 1990. Dr. John Prunier is the doctor of Mrs. Bush Sr. in Connecticut. A White House Members tour has been arranged for 8:45 a.m. and then the President's departure at Noon on Friday, May 25, 1990. They have also requested seeing the President. Let me know if there is any interest. Thank you again for your assistance. guidance u oj photo at 7:55 am prior to tour other 00 Editorial Support for Extending China Most-Favored Nation Trade Status "American policy needs to invest in China's future -- to work toward the day when that nation will be a more normal member of the world community. The better course is to appeal to the next generation of Chinese leadership with an economic and diplomatic policy that takes the longer view. The President has wisely chosen that path. " Los Angeles Times, May 25, 1990 "It was the correct call in a rough game. Trade has indeed proved an opening wedge for free ideas in China." Wall Street Journal, May 25, 1990 "President Bush is right to propose renewing China's trade privileges." New York Times, May 25, 1990 "But by maintaining the status quo in trade relations, the President did more than prevent a disruption of U.S. China trade: He maintained an important, albeit small, means of leverage to encourage China's reform efforts.' The Journal of Commerce, May 25, 1990 "To deny China MFN now may feel good, but it offers less long-term leverage -- less ability for the U.S. to press China to ease its repressive practices." Christian Science Monitor, May 17, 1990 "If denial happened, the U.S. would impose higher tariffs on Chinese exports here, something the struggling Chinese economy can ill-afford." Chicago Tribune, May 17, 1990 "Denial of MFN status to China would harm the sector of China's society that is pressing for reform. It would devastate Hong Kong which thrives on South China's trade with the outside world. It might counter-productively strengthen the neo-Maoist repression it would be intended to punish." Baltimore Sun, May 16, 1990 2 "Much of Chinese trade with American counterparts is conducted through more market-oriented enterprises that have become the most dynamic elements in the Chinese economy. It makes little sense to undermine those elements in China that represent a pragmatic approach to economic problems. Ending MFN treatment would do just that, to no one's advantage." Boston Globe, May 15, 1990 "Suspension would not just anger the Chinese authorities, cut exports and invite economic retaliation--costs conceivably acceptable. New trade-blocking tariffs would also weaken precisely the modernizing, internationally orientated sectors of the Chinese economy and political society that the U.S. has the greatest interest in cultivating. Beijing's trade and investment front, would be especially hard hit. In short, in the name of putting pressure on the China of repression, raising tariffs high would punish the China of reform.' Washington Post, May 11, 1990 "Bush's policy-- maintaining dialogue with China-- is correct Stable trade is the only way the U.S. can encourage economic reform in China. It is also the way to maintain cultural contacts that nurtured pro-democracy sentiments. Withholding most favored nation privileges would destroy a key piece of U.S.-China policy that has worked.' Seattle Post-Intelligencer, May 8, 1990 "Better at this point, then, to extend MFN for another year, making emphatically clear at the same time that the action is not taken as a favor to the regime but as an effort to improve the lot of the Chinese people.' Los Angeles Times, May 7, 1990 "Reverting to old tariff rates would cut U.S. imports of Chinese toys, sneakers, apparel and electronic products by an estimated 50 percent, according to the U.S.-China Business Council. The biggest losers would not be the state-controlled factories, but semiprivate enterprises in the South Tariff hikes thus would harm the very entrepreneurial sector the U.S. has been trying to support over the past decade and weaken the position of China's liberal economic reformers." The Journal of Commerce, May 2, 1990 Attachments: Newspaper Clippings L.A. Times 5.25 Just More Champagne for Beijing? No, Bush's MFN Decision Was a Wise American Investment in China's Future China today is ruled by unblinking capital wheeling toward students will least another year under the most-fa- revolutionaries whose orthodox Com- remain a vivid memory for a long vored-nation (MFN) program was munism blinds them to the meaning time to come. President Bush thor- just that. Bush calls it an "enormously of historic forces sweeping around the oughly misjudged the depth of the difficult decision," but his critics are world. broad distaste among U.S. and inter- likely to feel it was nothing more than South Africa moves away from national publics when top advisers a unthinking extension of the cham- apartheid, Eastern Europe continues were dispatched last year to Beijing pagne toast. its metamorphosis toward a higher so soon after that Tian An Men A logical extension it surely is, but form of political life and the leaders of Square tragedy. Sure, on one level unthinking? Not necessarily. With- the Soviet Union prepare to put their Bush's ploy was a bold and arguably drawing MFN status for China, as economic reforms to the vote of a imaginative stroke-an effort to gar- emotionally satisfying as it might be, people's referendum-a Soviet first. ner influence at a moment of great would not likely prove effective Not exactly business as usual. But diplomatic isolation. But ultimately it statecraft. American policy needs to none of these extraordinary develop- proved futile-and triggered world- invest in China's future-to work ments seem very much to affect wide criticism for the seeming U.S. toward the day when that nation will Beijing's political elite, which rolls insensitivity. It's possible that the be a more normal member of the merrily along like old man river on a memorable champagne toast in Bei- world community. Attempts to pres- course more or less predetermined by jing by National Security Adviser sure today's leadership would be to rigid ideology. Brent Scowcroft will haunt Bush's tilt at so many windmills. The better The resulting abhorrence in the China policy for years to come-even course is to appeal to the next genera- West was never more palpable than when policy decisions are correct. tion of Chinese leadership with an during last year's dramatic and re- But yesterday's decision by the economic and diplomatic policy that pugnant repression in Beijing. The President to continue extending low takes the longer view. The President image of tanks in and around the tariff rates to China's imports for at has wisely chosen that path. It's hard to feel glad about Presi- coming around to Beijing's point of dent Bush's announcement yesterday view. that he wants to renew China's most- More seriously, Congress might favored-nation trading status. It was harness the MFN debate to another the correct call in a rough game. matter that is acutely important to Trade has indeed proved an opening both Communist China and the rival wedge for free ideas in China. Revok- Nationalist Chinese government in ing MFN and making Americans pay Taiwan. And it's an issue that under- more for Shanghai knitwear probably scores U.S. respect for governments wouldn't help budge the Communist that have made genuine progress. The Party from its perch. issue is admission to the General But there's something that sticks in Agreement on Tariffs and Trade. or the craw about conferring the enco- GATT. mium, "most favored." on anything Neither Beijing nor Taipei cur- involving the Chinese government. rently belongs to GATT. and both Surely there must be a way to renew would very much like to join. Techni- what is actually routine trading cally, there is no problem with both status, accorded to all but a handful of Taipei and Beijing signing on as sepa- nations, without implying a political rate members. Under GATT regula- pat on the back. tions, they need only have separate President Bush's statement that customs areas, as does Hong Kong. China has made some responsive The decision is up to the member na- moves toward U.S. concern for human tions of GATT, but a public recom- rights is wishful thinking. The lifting mendation from either President Bush of martial law in Tibet and restora- or Congress could swing a lot of tion of U.S. consular access there weight. doesn't stop the torture we keep hear- Communist China has been kept ing about. It guarantees no freedoms. out essentially because the member No one in China is safe from the nations think its repressive, centrally whims of a party that has shot, jailed planned economy is just too big a and gagged its critics without even a mess to tangle with. GATT has been gesture of remorse. waiting for Beijing to reform enough Dissident Fang Lizhi remains a so that it might be ready to partici- prisoner in the American Embassy. pate in decent society. His terrible crime was that he spoke Taiwan lost its observer status in out in favor of democracy, and the 1971, when GATT took its lead from Chinese people liked what he said. the United Nations' decision to re- The same government that released place Taiwan with the People's Re- 211 dissidents from prison earlier this public of China. Since then, Taiwan month retains the power to arbitrarily has made enormous progress in its jail them tomorrow. Human rights economic and political development. China Trade will improve in China the day the Taipei's Chinese government has lib- party steps aside to allow civilized eralized its markets and flung open and politically legitimate institutions the political debate. Taiwan is now Wall St of government to develop. one of the most productive and prom- Congress will now be poking ising spots in the developing world. around in this sad swamp as it de- But, as a GATT spokesman told us Jounnal bates whether to block Mr. Bush's last fall, GATT has held up Taiwan's MFN recommendation-a move that admission as a full member. It's wait- would require a two-thirds disap- ing until Communist China has ma- 5.25 proval vote in both chambers. It's tured enough to join. GATT doesn't worth noting, however. that righteous want to get China miffed by letting anger at George Bush and China can Taiwan through the door first. also serve as camouflage for the pro- By urging that GATT get on with tectionist jingoes in Congress who Taiwan's admission, now, instead of would just as soon wall out Chinese waiting years for China, the U.S. textiles and toys regardless of what would send a useful signal. It would goes on in Beijing. set straight for China's leaders where There are actions Congress could they rank in world esteem, compared take that might help wipe the grin off with their capitalist, democratizing ri- Deng Xiaoping's face without hurting vals on Taiwan (who graciously rec- the Chinese people. For openers, it ommended extension of MFN for might be appropriate to recommend China). It would give Taiwan its due. that most favored nation be renewed And in a time when the U.S. is al- for China under a different label Say, -ready granting the communist govern- 'capitalist trading status." Why not? ments of China and the Soviet Union We suspect the dissidents now si- extraordinary political favors, it lenced in China would get a satisfying would remind the world that what chuckle out of it. And it would be a lot America most favors are govern- harder for the Chinese government to ments that understand the link be tell the world that the United States is tween capitalist trade and freedom. NY Times 5.25 Half Right on China Trade President Bush is right to propose renewing also give Mr. Bush the opportunity to re-evaluate an China's trade privileges. But he would have sent a entire range of Asian and Pacific policies. He needs sounder message if he had expressed outrage over to take a firmer stance against Chinese arms ship- Beijing's continued gross abuse of human rights. ments to the Khmer Rouge in Cambodia and ad- Congress, which has 30 days to review the proposal, vanced weapons sales to the Middle East. Until again will have to make clear that approving it in no China stops these activities and improves its human sense approves repression. rights performance, he should maintain restrictions For now, the trade privileges, known as most- on World Bank loans and military sales to China. favored-nation status, should continue. Suspension China recently released more than 200 political would be the wrong way to support the democratic prisoners to encourage renewal of trade privileges. cause in China. It would most injure the wrong Chi- It can't hurt to make it clear to Beijing that future nese, the urban constituencies that still favor eco- renewals won't be automatic, and that fresh provo- nomic and political reform. Over the long pull,'i it is cations could bring swift revocation. The White in America's interest to strengthen these groups House took precisely the wrong tack by emphasiz- through trade and political support. ing the profits American business stands to gain To be sure, suspension would hurt the political from renewal. prestige of Beijing's hard-line leadership. But U.S. President Bush's decision to favor renewal of displeasure can be delivered more directly to these equal trading status for China was half right. Now leaders - by strong statement of U.S. condemna- it's up to Congress to press for the second half - a tion - without damaging the forces of democracy. ringing commitment to human and civil rights for Recent changes in Chinese and Soviet policy the Chinese people. Journal of Commere 5.25 China Trade Intact PRESIDENT BUSH CLEARLY ACTED in the coun+ try's best interest when he announced Thursday morning that he would extend most-favored-nation status to China for another year. China will be able to continue exporting goods to the United States on the same tariff terms as most other U.S. trading partners. Failure to grant this preferen- tial trade status would have hurt Chinese export industries in the coastal areas, including many U.S.-Chiness joint ventures, and businesses related to these industries in Hong Kong. But by maintaining the status quo in trade relations, the president did more than prevent a disruption of U.S.- China trade: He maintained an important, albeit small, means of leverage to encourage China's reform efforts. Canceling China's most-favored-nation status would have created even more political ill will and severed any.re- maining ties to China Beijing was clearly nervous about the outcome of Mr. Bush's decision. As a show of good faith; on May 11, the regime announced the release of 211 politi- cal prisoners. It's a small, but encouraging step. With U.S.-China relations at least marginally intact, some resolu- tion of other issues, including the release of dissident physicist Fang Li Zhi, may be possible. But this is not the end of the story. At least two members of Congress, Reps. Nancy Pelosi, D-Calif. and Barney Frank, D-Mass:,~ are gearing up to oppose the president's decision. More congressional steam is to be expected. 20 MAY 17, 1990 THE CHRISTIAN SCIENCE MONITOR "First the blade, then the ear, then the full grain EDITORIAL in the ear" Beijing's Gestures ORE than 200 Chinese M trading partner; China stands to political prisoners - vet- lose nearly $6 billion in revenue erans of last year's "de- should MFN be dropped. hhocracy spring" protests - have Yet there may be a better case been set free. This is a welcome for renewing MFN at this time. event, even if it is a bald piece of Secret internal Chinese memos public relations by Beijing. released in Washington last week It's good to see such important show that human rights gestures pro-democracy leaders as writer are a "card" China is playing. Dai Qing out of jail. But still to be Fine. MFN is a card Mr. Bush can heard from are perhaps thou- play. To deny China MFN now sands of prisoners, including may feel good, but it offers less foremost student leader Wang long-term leverage - less ability Dan, a hero at Tiananmen for the US to press China to ease Square. its repressive practices. Chinese authorities have also The White House, and even begun an appease-the-intellectu- some opponents of China's MFN als campaign. Having released status in Congress, seem to be some 500 intellectuals from jail in taking this view. recent months, Beijing says it If China's trade status is re- wants to "make friends" with its newed, Washington should make educated, internal critics. it clear that China has to change. Intellectuals are now free to dis- Mr. Bush must let it be known he sent, and even to join the party, will watch the kind of freedoms say authorities. Hmmm. Don't that former political prisoners everybody speak up at once. will enjoy - and will expect A kinder, gender China? freedom for others. including dis- Hardly. Beijing wants its most fa- sident physicist Fang Lizhi. The vored nation (MFN) trading sta- secret Chinese memos suggested tus renewed by the US. China has that the Chinese embassy in the been on the US MFN list since US should adopt a "life and 1980 through a special Jackson- death" struggle against US-Chi- Vanik amendment waiver that is nese student dissidents. Will this reviewed each year. President position be publicly renounced? Bush has until June 3, ironically These are just some of the the eve of the Tiananmen massa- changes needed. The administra- cre, to make the MFN decision. tion should make Beijing under- Moral outrage alone would le- stand that it knows the score - gitimate the end of China's MFN and is more than prepared to status. The US is China's biggest drop MFN next year, if need be. new board members allows the inter- resumes or had arrest records. Some are active politi- im board time to finish its work. The new board can cal opponents of the mayor who might be more inter- then start fresh with its own agenda. ested in fomenting opposition than in the welfare of Chicago, and all the people in this state who will pay Chicago school children. Whatever his reasons, the in one way or another if the city doesn't do a better mayor is not required by law to state them. And since job of educating its children, has an enormous stake in he is the one who takes the heat if the new board its public schools and the board responsible for them. turns out to be incompetent or unresponsive, it's un- Mayor Daley is taking a political gamble in calling for derstandable if he is finicky about his choices. Obvi- more nominations. If the result is a better board, he ously, he is not going to appoint someone who wants can take credit for an act of political courage. The wrong remedy for college sports At a time when collegiate sports scandals are as age a lot of witnesses from cooperating. common as dandelions, and just about as ineradicable, State criminal penalties for NCAA violations would the Illinois legislature may be forgiven for thinking also load more burdens onto prosecutors and courts, that its intervention could be useful. Illinoisans worried who have no shortage of genuinely serious crimes to about severe penalties against the University of Illinois worry about. And it would turn Behemoth U.'s athlet- for its alleged recruiting abuses may also think the ic sins into-pardon the expression-a political foot- state could do a better job than the NCAA. But it ball, since a state's attorney won't make many friends couldn't, and the sooner the legislature abandons the by sending a successful local head coach to Stateville. idea, the better. Paying student athletes might be a good idea, but Two bills have been introduced in Springfield, one that judgment should be left to the NCAA and its by Republican Rep. Timothy Johnson of Urbana that members-in particular, university presidents and has been virtually killed by House Speaker Michael other academic officials. They are the ones who pre- Madigan and another by Democratic Rep. John Cul- sumably would have to provide the necessary funds, lerton of Chicago that is still alive. and only they-not their athletic directors and Cullerton's bill has two main components. The first coaches, and certainly not state legislators-can deter- is to incorporate the NCAA's list of recruiting viola- mine whether paying their team members would fur- tions into the state criminal code. The second is to ther weaken the already tottering image of the student mandate the payment of $250 per month to each athlete. One reason NCAA member schools have student athlete. avoided this proposal is that many would rather give The NCAA is a private organization of colleges and up varsity sports than assume this extra financial bur-. universities that ought to have the right to regulate its den. And those probably are the schools that have the members as it sees fit. Making every violation a poten- cleanest sports programs. tial criminal offense would only make it harder for the The Cullerton bill may be a well-intentioned effort organization to police abuses; cumbersome due-pro- to improve the moral tone of intercollegiate sports, cess safeguards would quickly intrude. These would which could certainly use improvement. But it's more make it more difficult to prove violations and discour- likely to make a bad situation worse. sets some tribune 5.16 China prisoners free China has released 211 people held since last year's of the late 1970s. Even those who were let go last violent interruption of the democracy movement in week know their freedom is tenuous: The writer Dai Tiananmen Square. Yes, "interruption," not "end." If Chinese government leaders did not still detect a Qing, like an uncaged canary too frightened to sing, would say little to a reporter. pulse from that movement, they would not have Nor has China agreed to let Fang Lizhi and his wife, played a card meant to salvage China's image abroad Li Shuxian, leave the safety of the American Embassy and forestall a detrimental change in trade status with the United States. in Beijing. Though only one person, Fang is a symbol important to both sides: to the government that has So the welcome with which the world greets the invested so much face in him and to the liberalizers freeing of political prisoners should be accompanied inspired by his outspokenness. by renewed resolve to sustain the pressure that con- Allowing Fang and Li to leave China, besides being tributed to it. It's significant, too, that with this release the humane thing, would help a lot to rehabilitate the China named names and indicated how many image of China's leaders. "lawbreakers involved in the turmoil and rebellion" of It also would undercut efforts in Washington to deny a year ago are still in custody-431. China most-favored-nation trade status with this coun- Estimates of those detained in Beijing after the try, If denial happened, the U.S. would impose higher crackdown range from 5,000 to 10,000, most of whom tariffs on Chinese exports here, something the strug- are believed to have been released gradually. gling Chinese economy can ill afford. Still, leading dissidents remain confined, including Quite apart from their cynical use in a trade issue, Wang Dan, a Beijing University history student who however, China's political prisoners should be released n was an important pro-democracy leader last year. And in accord with international norms of freedom that some have been held since the Democracy Wall period ought to apply in China as everywhere else. Court on Monday to uphold months ago the president was saying he did not for, both and around the world. Black Political Undercurrents The decision by seven black members of the lation that the Nation of Islam's leader. Louis Far- Baltimore City Council to form an African-Ameri- rakhan, will launch bids by candidates challeng- can Coalition is a puzzling one. If finding solutions ing City Council incumbents when he visits to black-on-black crime, education, health care Baltimore early next month. The Nation of Islam and other problems that affect the black commu- has already announced its intention to enter the nity really is a burning concern of those elected political arena in the District of Columbia and officials, what took them so long to seek action? Prince George's County with candidates promoting Could it be the incumbents' desire to protect the denomination's black-power agenda. If that themselves in next year's City Council elections? happens in Baltimore, Nation of Islam candidates We ask that question because we are detecting could change the tone of city elections. Since these undercurrents of frustration which may make be- candidates tend to be well-organized and amply LETTERS ing a black elected official much more difficult in financed, they would have to be regarded as seri- Baltimore City. ous contenders in next year's council races which The most notable expression of reasoned dis- often are characterized by a multitude of candt- Punish, Don satisfaction and impatience has been contained in dates but low voter turnout. heavy-hitting ads against Mayor Kurt L. Schmoke Yet another move that may advance militancy Editor: As I read your fror article, "Grants posed as way in the Baltimore Times give-away weekly. Spon- in city politics is the pending law sult that seeks to teen births," I got sick and I gc sored by the Maryland Minority Contractors Asso- replace the six existing three-member council dis- I got fed up with being an ciation. those full-page ads charge that "the city's tricts with 18 single-member districts. The belief middle-income (lower middle of the suit's sponsors is that it would increase taxpayer. I am tired of workins new mayor" has "failed and refused to recognize black representation in the City Council. Not only day and of using my self-cont and admit the obvious need" for black economic to use drugs, not to have trre: policy and strategy. "Blacks are in the city physi- would this Balkanize city politics, It would upset ble sex, not to do crime to S cally. but outside the city economically and com- the incumbents' convenient political alliances and my lifestyle urges and not to subject them to many more questions about, the often arduous task of t mercially." the ads charge. "What have you done for us lately? responsible adult citizen. Another undercurrent is reflected in the specu- am sick because I do thi Saltiman others are paid with my tax to offset the results of their in China Relents a Little sible behavior or, now it is pr to pay them to be responsible I believe that It is time for a Boston Tea Party. China's aged rulers had better guarantee the be near death, which might free the senior leader This time, instead of tea dissidents Fang Lizhi and Li Shuxian safe passage Deng Xlaoping to tilt back toward economic re- Boston Harbor, let us throw abroad from their refuge in the U.S. embassy in form. Rumors of Mr. Deng's own death, at 85, the irresponsible legislators Beijing. if they want President Bush to renew swept Asian financial centers and were repudiated bureaucrats who waste our lar. Let us have a radical tax most-favored nation trading status by June 3 and by Beijing. Let us stop supporting unres Congress to go along. Dental of most-favored nation status to China behavior. Let there be no t The showy release of 211 prisoners, some of would harm the sector of China's society that is ported dollars for people B them such as the writer Dai Qing quite prominent, pressing for reform. It would devastate Hong Kong, drugs and refuse treatment: is an insufficient gesture. The Chinese authorities which thrives on South China's trade with the ple who have repeated child outside world. It might counter-productively of wedlock: for people who arrested thousands of protesters last spring and slaved and are enslaving our summer, and have been releasing them in batches strengthen the neo-Maoist repression it would be with a repeated pattern of ever since. The government's announcement intended to punish. ployment without education speaks of "431 lawbreakers involved in the tur- But much of Congress is disappointed with service or retraining. or fc moil and rebellion" still under investigation. That President Bush's low-key response to denials of with a repeated criminal without education, drug tre may or may not be an assertion that only 431 human rights in China. The chance to curtail Chi- or real vocational training political prisoners remain from the Tlananmen na's 812 billion exports to the United States will jail. Square events. be hard to forswear. China is ruled by a wrong- China's economy is reeling from self-inflicted headed gerontocracy that cannot long survive. wounds. The inflation of last year was combated Changes are coming, possibly but not inevitably by massive recession, achieved through the roll- for the better. The more contact Washington has New 1 back of economic reforms. Foreign investors are with China at such a time, the better. But the release of 211 political prisoners is not enough to Editor: I was pleased to discouraged, though the regime's signals to them Michael P. Angelos as ge are mixed. The 84-year-old anti-reform leader quell the mood for tougher sanctions. More than International Terminals. I Chen Yun is reported by a Japanese newspaper to that is needed. have the best chance to competitive If it can possib In all candor, however, vations as to whether any THEO LIPPMAN JR. competitive If we continue What troubles me is a that, once again, senior 1 port labor issue will be ur T HE HEAD on our front page not race-related but news-related. Asia. The peace movement. even ed, inculcated bargaining story on the 20th anniversary When the Sun deadline passed, no with its martyrs, really did not suc- this will lead to only one It one was known to be dead. The Sun ceed. President Nixon kept to his This is where the state Welcome as it is, the "peace dividend" never- the Army; Hispanics make up 4 percent. history, Temin neglects These young men and women, and society, will tion the many conserva theless poses serious challenges to the nation's in- have been working on t] genuity. Notable among the challenges arising suffer wrenching dislocations if no optional struc- um's holdings, which ind from the thaw in the Cold War is how to plan intel- ture is devised to provide the security and growth only paintings. There H ligently for the social impact of reductions in the potential that the military once offered. for a very long time a ranks of the military services. The nation now em- President Bush and Congress should give as tion department at the ploys two million active military personnel. much attention to the problem of those excluded or that deals with works In the next five years, the Army probably will let go by the military as they inevitably will to the textiles and sculpture. be cut from its present level of 750,000 to some- hardships sustained by the multibillion-dollar de- partment includes Geor where between a half million to 580,000. Even fense industry and its employees. a paintings conserva works on a free-lance deeper cuts are possible. This year the Army re- Options the administration might profitably commissioned projects. duced its recruiting class from 120,000 to 92,000; consider include a '90s version of the Civilian Con- Temin, incidental other military branches also face cutbacks. servation Corps, an expanded version of the mod- have been unaware, Besides reducing personnel, the Army is rais- est-scale urban Youth Service Corps, and some compared the Frick in ing admission standards, especially education re- kind of federally funded nurse-training program. to the Gardner in Bo quirements and scores on qualification tests. during the years that Traditionally, the military has provided a home The problem must not be scanted. As Law- Kopelman was attach and opportunities for upward mobility for those at rence Korb, a former assistant secretary of de- Gardner, she also worl or near the bottom of society, particularly mem- fense for manpower and logistics who is now with Frick paintings. If T bers of minority groups. Blacks, who make up 12.4 the Brookings Institution, noted: "What's happen- wanted to, she surely percent of the population, make up 28 percent of ing is not an Army problem but a national one." found out that almost e⁻ Boston Globe 5.15 The trustees b Keeping China's door open Christine Temin's tails what has been ob the March 18 theft. sought to encourage. Much of Chinese trade with The trustees have 1 Americans have often misconstrued trade as a reward to be conferred for proper thinking on the American counterparts is conducted through more ly negligent. The attor part of other nations. As a consequence, it has markét-oriented enterprises that have become the al of the commonwealt used embargoes to prevent trade with problem most dynamic elements in the Chinese economy. in the process of an in to determine their cul countries - Cuba, Nicaragua, Panama - to try to Removal of MFN rules, subject to annual re- Isabella Stewart force changes that have not come to pass and have view by Congress and heretofore passed routinely, will is both precise ar only exacerbated problems for all involved. Con- would undoubtedly subject American goods to court should be asked gress, which will have to take up extension of nor- countermeasures, imperiling more than $5 billion guidelines before fut mal trade rules for China next month, might bear in exports when the United States is making every those failures in mind when considering the issue. effort to reduce its international trade deficit. Collection in g The Chinese have done little to make the While Sino-American trade is conducted be- The article leaves choice easier. Echoes from last year's bloody cause it is mutually advantageous, there are some with the impression clashes in Tiananmen Square in Beijing, with vio- political questions to be borne in mind. China's po- Gardner has, over the lent suppression of dissident students and subse- litical situation is subject to change without notice, inadequate attention quent jailing of hundreds, perhaps thousands, of but the Chinese must face their own economic and servation of its great political realities. China is a complex country with would contend, dissidents, properly raises the temptation to sus- a variety of political trends. It makes little sense, trary, that for a m pend normal trade rules, especially low tariffs. Such treatment, technically known as MFN - in such a context, to undermine those elements in limited resources, ti has done as well wit most favored nation - treatment, would have a China that represent a pragmatic approach to eco- tion of collections as highly negative impact on exactly those segments nomic problems. Ending MFN treatment would do in America. For many of the Chinese economy that Americans have just that - to no one's advantage. ing the 1970s and 1 the best painting cor America, Gabrielle Bona fide heroes worked on many Gardner pictures bot seum premises and York studio. She cle Twenty-nine years ago this month, Alan Shep- That poses a potential difficulty, though. Bene- ard of East Derry, N.H., launched the nation's dict said the Mercury Seven Foundation, which Stout: a conse manned space program with a 15-minute suborbi- funds scholarships for science and engineering stu- I was dismayed b tal flight in a Mercury capsule. Shepard and four dents, gets some oddball requests from promoters the article conerning of the other original astronauts were the guests of who want to hype get-rich-quick schemes. our müseum. Alth honor last weekend at the opening of the US As- But SO far the astronauts have been wary, generally unjustly n tronaut Hall of Fame in Titusville, Fla., 12 miles limiting their commercial endorsements. Shepard, descriptions of the the only Mercury astronaut to walk on the moon, collections, I found from the launch pads at Cape Canaveral. said he sold an endorsement only once and donat- regarding our seco With the 66-year-old Shepard were John George Stout, appal Glenn, now a US senator from Ohio, Scott Carpen- ed his earnings to the foundation. The manufactur- He was one of ter, Gordon Cooper and Donald Slayton. Walter ers of Glad trash bags paid $25,000 to use Shep- professionally train Schirra had a schedule conflict, and Virgil (Gus) ard's name in a television commercial. tors who raised this was killed in a launch-pad fire in 1967. The foundation, however, does not prohibit the level of witchcraft, Correcting the Tilt to Beijing Wash. Post, May 11, 1990 C HINA HAS released a second batch of citi- authorities, cut exports and invite economic re- zens who were detained uncharged for pro- taliation-costs conceivably acceptable. New testing the government's repressions a year trade-blocking tariffs would also weaken precisely ago. This follows the lifting of martial law in Tibet the modernizing, internationally oriented sectors of and some other steps before that. China seems to the Chinese economy and political society that the be feeling the hot breath of those in Congress who United States has the greatest interest in cultivat- lean to imposing severe tariff penalties for China's ing. Hong Kong, Beijing's trade and investment brutal revenge against the democracy movement front, would be especially hard hit. In short, in the demonstrators. The calendar in Washington makes name of putting pressure on the China of repres- the question topical. According to law, President sion, raising tariffs high would punish the China of Bush must decide by June 3 whether to renew reform. Beijing's "most-favored-nation" tariff status. If, as Still, it is not enough simply to sigh that the expected, he does, Congress might say no. That president should extend China's customary tariff would raise tariffs astronomically and cut deeply status and Congress should go along. To offset into China's $12 billion in exports to the United States. any tendency in Beijing to think that the Ameri- cans don't really care about democracy and A tactical dilemma lurks here. Many Americans might like to keep China in uncertainty in order to human rights, the Bush administration ought to take the occasion to narrow the gap between encourage it to go beyond modest, cosmetic and itself and Congress. This requires Mr. Bush to reversible steps into more significant changes- which hasn't come close to happening yet. At the stop acting as something of an apologist for the same time there is an underlying feeling, which is regime and to start standing with the congres- discernible in Congress as well as in the executive sional majority as an advocate of rights. There are a dozen ways a president so-minded could branch, that a decision to suspend normal tariff make this shift. The result could only be to treatment would be more serious and far-reaching than any sanction Washington has taken since correct the pro-Beijing tilt of the White House, to Tiananmen. restore the strength of bipartisanship to Ameri- can China policy and to identify the United States Suspension would not just anger the Chinese with the future of China. sCâttie 5/8/90 MAINTAIN THE DIALOGUE Stable U.S.-China trade fosters economic reforms T HIS time last year. thousands of college students filled Beijing's Tiananmen Square to demonstrate for democra- cy. They filled the hearts of millions around the world with hope. On June 4, the world watched with horror as China's old guard leaders crushed the peaceful protest with tanks and guns. Hundreds. perhaps thousands of students were injured and killed. It's a bitter irony that exactly one year later, President Bush is expected to ask Congress to maintain most-favored-nation trade status for China. Congress. despite its criticism of Bush's handling of U.S.-China relations. should agree. Bush's policy - maintaining dialogue with China - is correct. But Americans were justly angered by the way Bush carried out his policy. Instead of forcefully condemning the crackdown, Bush appeared to appease Beijing's aging hardliners by sending secret envoys to China and by vetoing legislation preventing deportation of Chinese students: Disapproval of Bush's actions, however, should not be used as a reason to force China into total isolation. Most-favored-nation status, in place since 1979, has support- ed growth, modernization and gradual movement toward a market economy. Revoking the status would raise U.S. tariffs, and severely reduce or eliminate the $18 billion of annual trade between the two nations. Stable trade is the only way the U.S. can encourage economic reform in China.-] It is also the way to maintain cultural contacts that nurtured pro-democracy sentiments. Withholding most-favored-nation privileges would destroy d key piece of U.S.-China policy that has worked. Beijing leaders may gloat over the trade preference. But reducing trade won't improve human rights. In fact, isolation and economic decline could lead to greater political repression. Clearly. Chinese leaders willing to revert to brutality against their citizens are not likely to be cowed by U.S. economic threats. The Tiananmen killings should not be forgotten or forgiven. But neither should U.S. China policy be based on economic retaliation that is bound to fail. A course that maintains existing trade ties will keep the dialogue going - which is not the same as telling the Chinese leaders what they want to hear. LATimes : 5-7-90 Aim the Policy at Next Generation Would withdrawing MFN for economically troubled China be effective statecraft? S ometime soon President Bush against any relaxation of social and will have to decide whether he political repressions? wants to extend most-favored- Almost certainly any attempt to use nation trade status to China for an- economic coercion to promote more other year. As historic irony would political tolerance in China would fail, have it, the June 3 deadline for Bush in the process bringing still more pain to send his MFN recommendation to to an already beset Chinese people. Congress falls on the anniversary eve For if MFN is withdrawn and trade of last year's Beijing massacre, when inevitably plummets. the economic army troops slaughtered hundreds of reforms that remain China's great dissidents demanding political re- long-term hope for progressing to- form. The White House is grimly MFN would promote free emigration. ward a fairer and more humane conscious of the coincidence. So are That law, the Jackson-Vanik Amend- society would surely falter; living many in Congress who remain angry ment, was aimed at securing free standards would decline, and China's and unforgiving over the crimes Chi- emigration of Jews from the Soviet international isolation-never a good na's leaders have committed against Union, but Congress has since in- thing for the welfare of a country's their own people. creasingly come to look on it as a people-would deepen. Most-favored-nation status is a re- tactic for punishing general human- That is not what those who contin- ciprocal arrangement that grants ad- rights violations. As it happens, emi- ue to be morally repelled by the vantageous, tariff rates to a trading gration from China to the United Chinese regime's repressive behavior partner's imports. Low tariffs can be States doesn't seem to have fallen in want to see. Better at this point, then, worth a great deal in terms of total the last year. But human rights in to extend MFN for another year, volume and market access. They're China have obviously suffered a great making emphatically clear at the one big reason why China, which first and painful regression, beginning same time that the action is not taken won MFN status in 1979, has seen its with last June's mass killings and as a favor to the regime but as an U.S. sales swell and its trade surplus extending to a crackdown on all effort to improve the lot of the grow to more than $6 billion in 1989. suspected dissenters and a ruthless Chinese people. Before long. the tired But MFN can be a tool of politics no effort to enforce political conformity. generation of old revolutionaries who less than of economics, a weapon for Would an effort to protest these continue to cling to power in Beijing punishment as well as a device for abuses by withdrawing MFN be an must pass from the scene. But China reward. Since 1974, U.S. law has said effective tool of statecraft? Or would endures, and it is with an eye on the that any "non-market" country that such an insistence on giving concrete needs of the Chinese people and on restricts the emigration rights of its form to understandable moral revul- the next generation of leaders that citizens is ineligible for MFN, unless sion instead cause China's ancient U.S. policy should be devised and the President certifies that granting rulers to further harden their hearts carried out Self-Defeating Sanction USING TRADE POLICY TO DO a foreign policy job is a tricky business: The United States could end up hurting itself by imposing broad trade sanctions to make a narrow political statement. That's what will happen If President Bush follows the advice of some in Congress who want to punish the hard-liners in Beijing by canceling China's most- favored-nation tariff status. Most-favored-nation status, which grants imports from China the same tariff treatment accorded goods from most other countries, was extended in 1980 under the U.S.-China Trade Agreement. That privilege has enabled China to become America's 10th-largest trading partner. Without it, high tariffs would make many Chinese goods uncompeti- tive: Customs duties on cotton sweaters, a major Chinese export, would rise from 6% to 60%. Under the Jackson-Vanik Amendment, a 1974 law aimed at the Soviet Union, most-favored-nation status may not be granted to any country that restricts its citizens' right to emigrate. Each year since 1980, the United States has granted China a waiver of the Jackson-Vanik require- ment, renewing its tariff preferences with little debate. The Journal of Commerce 5/2/90 Beijing's murderous repression in Tiananmen Square last June and the subsequent crackdown on the emigration of students and dissidents, mean that the Jackson-Vanik waiver is no longer a routine matter. By June S, President Bush must decide whether to issue a waiver for another 12 months, The president is under pressure to vindicate him- self for. his mistake in sending two secret missions to Beijing for high-level talks last year while publicly pro- claiming a moratorium on official visits. But responding to that pressure by stripping China of its most-favored-nation status would be a mistake. A reversal in U.S. trade policy, effectively abrogating the 1980 trade agreement, would play into the hands of the Chinese leadership, which has been waging an anti-Ameri- can campaign since last June. China might well retaliate in kind, interrupting the flow of U.S. exports to China, which totaled $6 billion in 1989. The injured parties would include U.S. farmers, who sold $1 billion worth of wheat to China last year, exporters of mining and construction equipment, which have con- tracts for hundreds of millions worth of goods over the next two years; and airplane manufacturers, which stand to lose about $500 million in sales. In every case, China could find alternative sources for these products with little difficulty. Reverting to old tariff rates would cut U.S. imports of Chinese toys, sneakers, apparel and electronic products by an estimated 50%, according to the U.S.-China Business Council. The biggest losers would not be the state-con- trolled factories, but semiprivate enterprises in the south, many of them joint ventures between Chinese and foreign firms. Tariff hikes thus would harm the very entrepreneur- ial sector the United States has been trying to support over the past decade and weaken the position of China's liberal economic reformers. Maintaining trade relations with China is in the United States' long-term foreign policy and economic interests. Seeking to humiliate the Chinese by stripping them of their favored tariff status would be self-defeating. There are less damaging and less expensive ways to send the message that the United States does not support the regime of Premier Li Peng. THE WHITE HOUSE Office of the Press Secretary (Kennebunkport, Maine) For Immediate Release May 25, 1990 TO IMPLEMENT AN ACCELERATED SCHEDULE OF DUTY ELIMINATION UNDER THE UNITED STATES-CANADA FREE-TRADE AGREEMENT BY THE PRESIDENT OF THE UNITED STATES OF AMERICA A PROCLAMATION 1. On January 2, 1988, the President entered into the United States-Canada Free-Trade Agreement (the Agreement). The Agreement and certain letters exchanged between the Governments of Canada and the United States were approved by the Congress in section 101 (a) of the United States-Canada Free-Trade Agreement Implementation Act of 1988 (the Implementation Act) (Public Law 100-449; 102 Stat. 1851). The Agreement entered into force on January 1, 1989. 2. Section 201 (b) of the Implementation Act grants the President, subject to the consultation and lay-over requirements of section 103 (a) of the Implementation Act, the authority to proclaim such modifications as the United States and Canada may agree to regarding the staging of any duty treatment set forth in Annexes 401.2 and 401.7 of the Agreement as the President determines to be necessary or appropriate to maintain the general level of reciprocal and mutually advantageous concessions with respect to Canada provided for by the Agreement. Consistent with Article 401(5) of the Agreement, the President, through his duly empowered representative, on May 18, 1990, entered into an agreement with the Government of Canada providing an accelerated schedule of duty elimination for specific goods of Annexes 401.2 and 401.7 to the Agreement. The President has complied with the consultation and lay-over requirements of section 103(a) of the Implementation Act with respect to such schedule. 3. Pursuant to section 201 (b) of the Implementation Act, I have determined that the modifications hereinafter proclaimed of existing duties on goods originating in the territory of Canada are necessary or appropriate to maintain the general level of reciprocal and mutually advantageous concessions with respect to Canada provided for by the Agreement and to carry out the agreement with Canada providing an accelerated schedule of duty elimination for specific goods of Annexes 401.2 and 401.7 to the Agreement. 4. Section 202 of the Implementation Act provides for certain rules of origin. I have determined that it is necessary to modify the Harmonized Tariff Schedule of the United States (HTS) to correct technical errors in the previously proclaimed rules of origin. more (OVER) 2 5. Section 604 of the Trade Act of 1974 (the 1974 Act) (19 U.S.C. 2483) authorizes the President to embody in the HTS the substance of the provisions of that Act, and of other acts affecting import treatment, and actions taken thereunder. NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, acting under the authority vested in me by the Constitution and the laws of the United States, including but not limited to sections 201 (b) and 202 of the Implementation Act and section 604 of the 1974 Act, do proclaim that: (1) In order to provide for an accelerated schedule of duty elimination and to correct technical errors in the rules of origin, general note 3 to the HTS and the tariff treatment provided for in the HTS for goods originating in the territory of Canada are modified as provided in the Annex to this proclamation. (2) Any provisions of previous proclamations (in particular provisions concerning staged reductions in rates of duty for goods originating in the territory of Canada) inconsistent with the provisions of this proclamation are hereby superseded to the extent of such inconsistency. (3) The amendments made to the HTS by the Annex to this proclamation shall be effective with respect to articles entered, or withdrawn from warehouse for consumption, on the dates indicated in such Annex. IN WITNESS WHEREOF, I have hereunto set my hand this twenty-fifth day of May, in the year of our Lord nineteen hundred and ninety, and of the Independence of the United States of America the two hundred and fourteenth. GEORGE BUSH # # # George Bush Presidential Library Transfer Sheet COLLECTION: ACCESSION NUMBER: Bush Presidential Records 1993.0001 FOIA/SYSTEMATIC Office of the President PROCESSING CASE Transferred During Accessioning NUMBER (if app.): Transferred During Processing 2009-0166-S The following material was transferred to: Audiovisual Collection Book Collection Museum Collection Other Other (Specify): DESCRIPTION: White House Photographs: P13169-19 [K-Port-golf]; P13163-19 [Barbara Bush, Marshall, & Walker]; P13164-20 [Barbara Bush and Walker Bush]; P13210-04A [Marshall and Walker Bush w/dog]; P13168-09 [Barbara Bush and Millie] When transferring Donor: material to the museum Donor Org.: collection, complete the Address: following. Telephone: Book Location: Map Case Location: Row: Section: Shelf: Position: Series: Box Number: Daily Files 49 Folder Title: OA/ID Number: Friday, May 25, 1990 90548-007 Transferred by: Deborah Wheeler Date of Transfer: 5/7/2010 Received by: Mary Finch Date Received: 5/7/2010 Go to Database Go to Accession Go to Withdrawal Sheet Navigator Print Record Register Bush Presidential Library Photocopy K-port <<<<<<< A Bush Presidential Library Photocopy d) 61-091818 to si ASTIOH 311HM Bush Presidential Library Photocopy Bush Presidential Library Photocopy OFF OFFICIAL WHITE HOUSE PHOTOGRAMH 25 MAY 90 D P13163-18 CP T Innuen RA Bush Presidential Library Photocopy OFF USAL walle HOUSE PHOTOGRAPH 25 MAY 90 20 P13164-20 OF ESE your SEALT DELINO STATES Bush Presidential Library Photocopy Bush Presidential Library Photocopy All 06 14 50 311HM Bush Presidential Library Photocopy ) OFFICIAL WHITE HOUSE PROTOGRAPH 25 MAT on H13158-03 a Bush Presidential Library Photocopy