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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: 90558 Folder ID Number: 90558-005 Folder Title: Monday, August 27, 1990 Stack: Row: Section: Shelf: Position: V 12 12 2 3 Withdrawal/Redaction Sheet (George Bush Library) Doc. No. / Type Subject/Title Date Restriction Classification 01. Log White House Telephone Log [Signal Switchboard] [redaction of 08/27/90 (b)(6) personal information] (2 pp.) Page 1 of 1 Collection: Record Group: Bush Presidential Records Office: Office of the President Series: Daily Files Subseries: WHORM Cat.: File Location: Monday, August 27, 1990 Pinksheet Number: dw1800 OA/ID Number: 90558-005 Date Closed: 9/2/2010 FOIA/Sys Case #: 2009-0166-S Re-review Case #: P-2/P-5 Review Case #: THE WHITE HOUSE WASHINGTON 8/29 8/25 10-1100 Meety W/ Gen Scowcroft 8/26 0815-0840 Scoweroft 1300-1400 8/27 0830-0945 Scowcroft 1415.1530 Scoweroft, mulrooney, ambassado Be 8/28 0730-0810 servenft mulsoney 0810-0830 scowengs Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 01. Log White House Telephone Log [Signal Switchboard] [redaction 08/27/90 (b)(6) of personal information] (2 pp.) Collection: Record Group: Bush Presidential Records Office: Office of the President Series: Daily Files Subseries: WHORM Cat.: File Location: Monday, August 27, 1990 Date Closed: 9/2/2010 OA/ID Number: 90558-005 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 August 27 , 19 90 TIME PLACED DISC NAME ACTION OUT 4:55 AM 4:59 Mr. Eric E. Herbst Tlkd-ok White House Situation Room 4:56 AM INC PM White House Signal 2-2264 our 8:51 AM 8:56 Mr. Marlin Fitzwater Tlkd-ok Nonantum Portside Hotel 8:52 AM Kennebunkport, Maine INC PM Kennebunkport Signal x332 OUT 9:03 AM 9:10 Ms. Bridget M. Montagne Tlkd-ok Office, Washington, D.C. 9:04 AM INC PM White House Signal 2-2199 OUT 9:26 AM 9:38 Conference Call: Tlkd-ok President Hosni Mubarak 9:33 AM INC PM (b)(6) OUT AM Mr. David C. Welch White House Situation Room INC PM White House Signal 2-2264 OUT 9:38 AM 9:41 Ms. Bridget M. Montagne Tlkd-ok Bush Presidential Library Photocopy Office, Washington, D.C. 9:39 AM INC PM White House Signal 2-2199 aux AM Conference Call: LW with Ms. Bonsanti Secretary General 3:13 PM INC 3:09 PM Javier Perez de Cuellar OUT AM (b)(6) INC PM OUT AM Dr. Richard N. Haass Office, Washington, D.C. INC PM 395-6900 OUT AM Mr. Corneilius F. O'Leary White House Situation Room INC PM White House Signal 2-2264 OUT AM Ms. Nancy Bearg Pyke Office, Washington, D.C. INC PM 395-5694 THE WHITE HOUSE WASHINGTON TELEPHONE MEMORANDUM SIGNAL SWITCHBOARD August 27 . 1990 TIME NAME ACTION PLACED DISC WCL OUT AM Secretary Nicholas F. Brady 4:16 PM Office, Washington, D.C. Tlkd-ok 566-2533 6:02 PM INCX 4:15 PM 6:06 OUT Mr. Marlin Fitzwater Tlkd with Major Byrne AM Nonantum Portside Hotel 6:12 PM Kennebunkport, Maine INK 6:06 PM Kennebunkport Signal x220 OUT AM Mr. Marlin Fitzwater Tlkd-ok Nonantum Portside Hotel 6:20 PM Kennebunkport, Maine INIX 6:20 PM 6:23 Kennebunkport Signal x220 OUT AM Mr. Don Rhodes Tlkd-ok 8:12 PM (b)(6) INC 8:12 PM 8:16 94K AM Mr. Prescott Bush, Jr. Tlkd-ok 8:35 PM (b)(6) INC 8:34 PM 8:41 OUT AM Bush Presidential Library Photocopy INC PM OUT AM INC PM OUT AM INC PM OUT AM INC PM OUT AM INC PM OUT AM INC PM THE WHITE HOUSE WASHINGTON TELEPHONE MEMORANDUM AUGUST 27 PRESIDENT BUSH , 19 90 TIME NAME ACTION PLACED DISC OUT AM NO CALLS 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 OUT AM INC PM OUT AM INC PM OUT AM INC PM PRESIDENTIAL MOVEMENTS LOCATION Kennebunkport, Maine DATE 27 August 1990 TIME MOVEMENTS 0520 Depart Walker's Point via Motorcade (LOW KEY) 0529 Arrive Grist Mill Tidal Pool (LOW KEY) 0810 Depart Grist Mill Tidal Pool via Boat (LOW KEY) 0823 Arrive Walker's Point (LOW KEY) 0955 Depart Walker's Point via Boat (LOW KEY) 1146 Arrive Walker's Point (LOW KEY) 1623 Depart Walker's Point via Boat (LOW KEY) 1720 Arrive Walker's Point (LOW KEY) WHCA FORM 15, OCTOBER 15, 1980 News Summary OFFICE OF THE PRESS SECRETARY THE WHITE HOUSE WASHINGTON MONDAY, AUGUST 27, 1990 -- 6 A.M. EDT EDITION TODAY'S HEADLINES INTERNATIONAL NEWS IRAQ SEIZES LEBANON'S AMBASSADOR TO KUWAIT -- Iraqi occupation troops have seized Lebanon's ambassador to Kuwait and 12 of his staff, foreign ministry sources told Reuter Monday. (Reuter) U.S. HOPEFUL SADDAM WILL BOW TO PRESSURE -- The Administration is expressing hope the Persian Gulf crisis still can be resolved without military conflict, if worldwide economic sanctions force Iraq's Saddam to withdraw his forces from Kuwait. (Washington Times, AP, Reuter) SOME SOUR NOTES IN CHORUS OF PRAISE FOR BUSH -- Although the approval rating for President Bush in the Persian Gulf crisis is running high -- more than 70 percent in recent polls -- some notes of doubt and criticism are beginning to creep in. (UPI) NATIONAL NEWS FED'S CONCERNS OVER RECESSION ARE INCREASING -- Fed policy makers are increasingly concerned about the possibility of a recession in the U.S., and lean toward a modest easing of credit. (Wall Street Journal) NETWORK NEWS (Sunday evening) GULF -- After negotiations between the U.S. and Iraq, 55 dependents of American INTERNATIONAL NEWS A-1 diplomats were allowed to leave Baghdad. NATIONAL NEWS A-13 U.N. Secretary-General Perez de Cuellar will meet NETWORK NEWS B-1 with Iraq's foreign minister this week. SUNDAY TALK SHOWS C-1 President Bush basked not only in perfect weather, but in a growing sense of confidence Saddam has been check-mated. This Summary is prepared Monday through Friday by the White House News Summary Staff. For complete stories or information, please call 456-2950. White House News Summary Monday, August 27, 1990 -- A-1 INTERNATIONAL NEWS IRAQ SEIZES LEBANON'S AMBASSADOR TO KUWAIT BEIRUT -- Iraqi occupation troops have seized Lebanon's ambassador to Kuwait and 12 of his staff, foreign ministry sources told Reuter Monday. They said ambassador Adnan Badra and the other diplomats, who were due to return to Lebanon last Thursday, had been taken to Baghdad after being detained on leaving the embassy en route to Saudi Arabia. Lebanon's pro-Syrian government decided to withdraw Badra in protest against Iraq's Aug. 2 invasion of Kuwait and Baghdad's order to close embassies in the annexed northern Persian Gulf state. The sources said the diplomats had been banned from leaving Baghdad and their precise whereabouts were unknown. (Reuter) THREE AMERICAN DEPENDENTS STOPPED AT IRAQ-TURKISH BORDER Fifty-two of 55 dependents of U.S. Embassy personnel from Kuwait crossed from Iraq into Turkey late Sunday, but three young men were detained by Iraqi border authorities, the State Department said. A spokeswoman for the Kuwait task force at State Department headquarters said, "The convoy of Kuwait embassy dependents crossed the border from Iraq into Turkey about 2 a.m. Iraqi time (6 p.m. EDT). Fifty-two of the group of 55 who earlier had permission to cross were allowed to leave. "Three young men in the group, male dependents of Kuwait embassy diplomats, were not allowed by Iraqi officials to transit the border and are in the company of an American Embassy Baghdad escort officer The spokeswoman, who declined to allow her name to be used, said she had no information on the ages of the three males held back, nor on what would happen to them. State Department officials previously have described all 55 of the dependents as "women and children." An Administration official with President Bush in Kennebunkport, said later that all three of those kept from crossing the border were over 18 years of age. The official, who declined to be identified by name, said there was no indication that the three were harmed, but that they were sent back to Baghdad with the escort officer. (George Gedda, AP) -970m- White House News Summary Monday, August 27, 1990 -- A-2 U.N. LEADER TO HOLD TALKS WITH IRAQI IN MEDIATION BID CAIRO The U.N. announted Sunday that Secretary-General Perez de Cuellar will meet Thursday in Jordan with Iraq's foreign minister to discuss the Persian Gulf crisis, as Iraq allowed more than 50 Americans to leave the country but continued to round up Westerners. The announcement marked the first formal attempt by the U.N leader to mediate in the international dispute sparked by Iraq's Aug. 2 invasion of Kuwait and its detention of thousands of Westerners. National Security Adviser Scowcroft said on ABC Sunday that the Bush Administration "would have no problem" with a mediation effort by Perez de Cuellar but made clear that the only thing the U.S. is ready to negotiate now would be "the timetable, the modalities" of an Iraqi withdrawal from Kuwait. Saddam Hussein, who has called for talks with the nations arrayed against him, has declared that his conquest of Kuwait is irreversible. But Iraqi Foreign Minister Aziz told CNN Sunday: "We are open to listen to suggestions. We have not closed the door to any idea, but this question is complicated by the American threat to Iraq." (William Claiborne, Washington Post, A1) SHEVARDNADZE: SOVIETS WILL NOT USE FORCE But Moscow Has No Objection If Others Enforce Iraqi Embargo MOSCOW -- The Soviet Union will not use force in the Persian Gulf despite voting for a U.N. resolution last week permitting limited military enforcement of the embargo of Iraq, Foreign Minister Shevardnadze said Sunday. After talks here with French Foreign Minister Dumas, Shevardnadze said in a joint news conference that while Moscow will not object if other countries, including the U.S., use military means to back up the embargo, "we have no such plans to use force or take part in such an operation." "We voted (for the U.N. resolution) because other countries are ready to take part in inspecting the ships and vessels suspected of carrying prohibited cargo, Shevardnadze said. "The United States and other countries represented in this region -- I mean which have their own armed forces -- they should act, but within the guidelines of the resolution." Shevardnadze also denied reports that the 193 Soviet military advisers still in Iraq are helping it "prepare details for military operations." Other officials have said the advisers help teach Iraqi soldiers how to use and maintain Soviet-made arms and equipment. (David Remnick, Washington Post, A13) -елош- White House News Summary Monday, August 27, 1990 -- A-3 U.S. SAYS IRAQIS BRIEFLY ENTERED CHINESE EMBASSY IN KUWAIT Iraqi authorities reportedy entered the Chinese Embassy in Kuwait and tightened their grip on other foreign embassies there Sunday by shutting off their water supply, Administration officials said. The U.S. Embassy, which now houses about 10 diplomats, has been virtually cut off from the 2,500 people who make up the American community and surrounded by Iraqi forces, the State Department said. Ambassador Nathaniel Howell and his staff of mostly consular officers have stored adequate food and water, including that which fills several jugs and the compounds swimming pool. While their electricity has been cut, a couple of telephone lines work from time to time. (Clifford Krauss, New York Times, A10) U.S. HOPEFUL SADDAM WILL BOW TO PRESSURE The Administration is expressing hope the Persian Gulf crisis still can be resolved without military conflict, if worldwide economic sanctions force Iraq's Saddam to withdraw his forces from Kuwait. "I can see a peaceful way out of it," National Security Adviser Scowcroft said Sunday. "Saddam Hussein must now see he's facing overwhelming world opinion. He is casting about for a way out of the box in which he finds himself," Scowcroft said The specter of global economic pressure on Iraq, combined with the U.S.-led military buildup in Saudi Arabia, prompted several analysts who appeared on network television talk shows Sunday to forecast an eventual reversal by Saddam of his Aug. 2 conquest of Kuwait. Former national security advisers Henry Kissinger and Zbigniew Brzezinski indicated there was room for hope that the gulf crisis could be resolved short of military conflict. (George Gedda, AP) Bush To Meet With Canada's Mulroney On Persian Gulf Crisis KENNEBUNKPORT -- President Bush, buoyed by a crucial U.S. victory in the U.N., is exploring ways to increase pressure on Iraq's Saddam Hussein in talks with Prime Minister Mulroney. Mulroney, a key ally, was to arrive at Bush's seaside vacation complex at midday Monday for a 24-hour visit. Although Canada earlier voiced some reservations about using force in the Persian Gulf, it now has joined other nations in providing forces in the region. The two leaders were expected to discuss Mulroney's recent talks with Arab leaders, as well as the role of three Canadian ships sent to the Persian Gulf to help enforce the trade embargo, said an Administration source who asked not to be identified. Bush and Mulroney also were likely to discuss the emergence of U.N. Secretary-General Perez de Cuellar as a conduit to talk with Saddam Hussein, the Administration official said. (Tom Raum, AP) - White House News Summary Monday, August 27, 1990 -- A-4 Bush set To Confer with Canadian Leader On Gulf Crivis KENNEBUNKPORT -- As U.S. warships shadow Iraqi merchant vessels to implement a trade embargo on Iraq, President Bush invited Prime Minister Mulroney to his seaside holiday home Monday to discuss the gulf crisis. Mulroney, accompanied by his wife, Mila, and four children, was to arrive at midday for "extensive discussions" with Bush, a White House spokesman said. Canada has two destroyers and a support ship in the multi-national force arrayed against Iraq in the Persian Gulf. The Canadian leader's visit comes amid signs that Bush and his advisers believe their strategy in the 25-day-old crisis is starting to make headway. President Saddam "certainly is showing that he is concerned by what is in place against him He is casting about for a way out of the box in which he finds himself," National Security Adviser Scowcroft told ABC News on Sunday. With massive ground, air and naval forces in the gulf and armed with U.N. backing to cut Iraqi economic lifelines by force if necessary, the White House seemed hopeful of a peaceful resolution of the crisis and emphasized it would be on Bush's terms. Scowcroft said U.N. Secretary-General Perez de Cuellar's plan to meet Iraqi officials in Amman on Thursday was "clearly acceptable" and pointedly added that Perez de Cuellar's agenda was unambiguous. (Gene Gibbons, Reuter) War Fears Diminish But West Dismisses Saddam's Peace Feelers NICOSIA, Cyprus -- Fears of imminent war in the Persian Gulf diminished Monday after a jittery weekend but both sides seemed set for a lengthy stand-off in the crisis. Western leaders scorned hints that Iraq's Saddam Hussein, faced with a huge military buildup in Saudi Arabia, was ready to talk peace. "This man is a despot and a tyrant and must be stopped," said Prime Minister Thatcher. But National Security Adviser Scowcroft said Saddam seemed to be looking for a way out. "He certainly is showing that he is concerned by what is in place against him He is casting about for a way out of the box in which he finds himself," Scowcroft said in a television interview. Scowcroft said Washington was ready for talks at any time if Iraq met its conditions -- mainly a total withdrawal from Kuwait and restoration of the emir Saddam appeared to set for a long haul. The Independent newspaper reported from Baghdad that food rationing would start Sept. 1 in an attempt to beat the U.N. embargo which has cut off almost all Iraq's trade. (Simon Martin, Reuter) - White House News Summary Monday, August 27, 1990 -- A-5 Bush set To Talk, If KENNEBUNKPORT -- The Bush Administration, confident that it now has enough forces in Saudi Arabia to repel an Iraqi attack, is ready to talk with President Saddam -- but only after Iraq leaves Kuwait and restores its pre-invasion government. Believing that Iraq is on the run due to the American military buildup and a united Arab front against Saddam, senior Administration officials said Sunday for the first time that diplomacy could lead to a peaceful resolution of the 25-day-old crisis. But in Washington the Pentagon is still fearing for war, making sure that if a military confrontation breaks out, the thousands of American troops in Saudi Arabia for Operation Desert Shield are fully supplied for an all-out offensive. Senior military officials told the Washington Times that the Pentagon has placed urgent orders with arms suppliers for jet- and tank-killing missiles, shells and bullets, the officials said. The purchases include Sidewinder air-to-air missiles. In addition, the officials said, the Pentagon is not slowing the shipment of troops and equipment to the gulf and will continue to call up thousands of reservists -- many of whom would go to Saudi Arabia. (Paul Bedard, Washington Times, A1) ECONOMIC BLOCKADE KENNEBUNKPORT -- The U.N. economic blockade already is "pinching" Iraq -- forcing President Saddam to seek some way "out of the box" that eventually could undermine his reign over his own people, top Bush Administration officials said Sunday. "He is certainly showing that he is concerned by what is in place against him," Gen. Scowcroft said. "I think he is casting about for a way out of the box in which he finds himself." In addition, the officials said the U.S. would support the efforts of U.N. Secretary-General Perez de Cuellar to mediate the Persian Gulf crisis, but pointed out that Perez de Cuellar should adopt recent U.N. Security Council resolutions as his framework for the negotiations now set for Thursday in Amman And Scowcroft told reporters here Sunday that the U.S. would grant political asylum to the crews of any Iraqi ships if they permitted American or allied forces to board their vessels or to turn the ships away. Saddam reportedly has threatened to execute any ship captains who comply with searches or any other orders authorized by the U.N. to enforce the economic sanctions. But Scowcroft downplayed the possibility that any such confrontations are near, saying, "While right now there are a few ships that conceivably could be a problem, right now, as I understand it, there are no problems in the area." (Timothy Clifford, Newsday) - White House News Summary Monday, August 27, 1990 -- A-6 U.S. offers Asvlum To Iraqi Crews That Help with En argo KENNEBUNKPORT -- The U.S. will offer asylum to Iraqi tanker crews that cooperate with efforts to enforce a U.N. trade embargo against Baghdad, a senior U.S. official said Sunday. "To the extent that some of them may fear for their safety or lives if they do comply with the U.N. orders, of course we will (offer asylum to the crew members), said National Security Adviser Scowcroft The U.N. Security Council early Saturday approved by a 13-0 vote with two abstentions the use of military force to carry out the embargo imposed following Iraq's Aug. 2 invasion of Kuwait. However, Scowcroft said voluntary compliance with the U.N. sanctions was good and he foresaw no military confrontations soon. (Irwin Arieff, Reuter) DEMANDS FOR OVERALL U.S. ENERGY POLICY INCREASE Role of Taxes, Costs of Persian Gulf Deployment May Be Focus of Congressional Debate Not for a decade has the U.S. energy policy agenda been so full. The Persian Gulf crisis has doubled U.S. oil prices in a month. Congress returns next week to face a budget battle in which the role of energy taxes and costs of a huge military deployment to protect oil supplies are likely to be the focus of debate The Bush Administration does not want the authority to impose energy price controls or to allocate energy resources. But beyond that, its overall energy policy has never been articulated -- it is still being developed, 14 months after Secretary Watkins, in a White House ceremony, said he would develop a comprehensive national energy strategy aimed partly at eliminating decision- making based on crisis or panic "The initial response of the Bush Administration to this latest crisis signals a continuation of the short-sighted policies which have gotten the U.S. into this mess in the first place, said the Energy Conservation Coalition in a comment typical of criticism of the Administration. "Although inflating our tires will reduce some oil use, it is not the hard-hitting policy and program recommendations this country needs." The demand for action on an energy policy framework is not coming just from the environmental community. Texaco Inc. released the results of a poll it commissioned indicating that 86 percent of Americans favor development of a comprehensive energy policy and 73 percent believe the situation in the Middle East represents "a serious threat to the American economy and the nation's way of life." (Thomas Lippman, Washington Post, A4) - White House News Summary Monday, August 27, 1990 -- A-7 IMAGE-MAKERS SEE RISK AS BUSH GOLFS THROUGH GULF CRISIS when Americans recall the gulf crisis of August 1990, they'll picture their President in a golf cart and a motorboat -- images that some Democrats are mentally stockpiling for their 1992 campaign arsenal. Why does the White House permit President Bush, the nation's best-known vacationer, to be photographed talking about troops, tensions, hostages and hardships while he's fishing or golfing? "It's over-compensation. It's an attempt to prove that George Bush and Iraq are not Jimmy Carter and Iran," said GOP analyst Stuart Rothenberg, editor of The Political Report. But he and others suggest that Bush could have made the same point in a less jarring way by taking a working vacation at Camp David, for example, or by limiting his activities in Maine to a morning run, relaxation with his family and work related to the crisis To the image-makers, Bush is committing a cardinal sin and taking a potential risk. "What you need when you're the president is a lot of personal credibility to get you over the rough spots," said Bob Squier, a Democratic media consultant. "This operation is not going to be easy. He's squandering his goodwill by giving pictures that make it look like he's not taking this seriously." (Jill Lawrence, AP) SOME SOUR NOTES IN CHORUS OF PRAISE FOR BUSH Although the approval rating for President Bush in the Persian Gulf crisis is running high -- more than 70 percent in recent polls -- some notes of doubt and criticism are beginning to creep in. Some of the critics fault the Administration for past actions such as not recognizing the potential dangers of President Saddam before the Aug. 2 invasion of Kuwait. Others raise questions about how the U.S. is going to pull its forces out of the Middle East without destabilizing the region or going to war. And still others criticize him for operating on a double standard -- invading Panama in December 1989 but then responding with military force to another nation's invasion of a small country. But the critics remain the distinct minority, even among such traditional opponents as the Heritage Foundation. James Phillips, a Middle East analyst with the foundation, said, "Bush has operated flawlessly in the crisis so far, although I'm a little nervous about the future." Phillips said, "Where I would fault him is for giving Saddam Hussein the benefit of the doubt for too long. We continued our policy of using him as a force for containing Iran for too long. Perhaps a sharp word of warning from Bush before the invasion could have headed Saddam off." (Jim Anderson, UPI) - White House News Summary Monday, August 27, 1990 -- A-8 MITCHELL, FOLEY After the first wave of American combat troops was already en route to Saudi Arabia, President Bush tried to reach one congressional leader who controls the constitutional authority to declare war, call up the militia and -- in the case of Saddam Hussein -- punish felonies against the law of nations. But Sen. Mitchell was traveling. The White House operators left a message for him in Nashville. When he called back, Bush was busy. "I did finally speak to Gen. Scowcroft, who merely informed me in general terms of the proposed deployment," Mitchell told reporters Aug. 8. There was no conversation beyond that." Since then, Mitchell and Speaker Foley -- who did talk to Bush on Aug. 7 -- have vanished into vacationland. Before leaving -- Mitchell for Maine and Foley for the Virgin Islands -- they gave Bush a virtual congressional carte blanche for the biggest commitment of American force overseas since the Vietnam War When the two leaders return to Washington for a meeting with Bush, they will encounter some second-guessing from their colleagues over the risk that "Operation Desert Shield" presents to the U.S. "There's a feeling that things have escalated beyond expectations and that this co-equal branch of government is not plugged in," said a House leadership official who took a telephone poll of key Democrats. Among the concerns voiced about Bush's policy was the potential use of military power to force Hussein out of Kuwait, the leadership official said. (Patrick Slovan, Newsday) ISRAEL VOWS AID FOR PALESTINIAN GULF REFUGEES ALLENBY BRIDGE, West Bank -- As Palestinian refugees from Kuwait and Iraq streamed westward across the Jordan River on Sunday, a senior Israeli government official promised to expedite the flow of those returning to the West Bank from the Persian Gulf crisis area. Shmuel Goren, occupied territories coordinator, paid a visit to this historic crossing place between Jordan and the West Bank and declared that Israel would "obviously help" any foreign citizens wishing to pass this way But the official also said that Israel, during the impending harvest season, would crack down on any effort to truck West Bank food supplies across the Allenby Bridge into Jordan with Iraq as the ultimate destination. (William Tuohy, Los Angeles Times) SAUDIS ACT TO RAISE OIL PRODUCTION DHAHRAN, Saudi Arabia -- The Saudi government has ordered the state-owned oil company Saudi Aramco to begin increasing production but has yet to set any new ceiling, according to informed oil sources The sources said the government order to Saudi Aramco was issued early last week after oil Minister Nisham Nazer publicly warned Saudi Arabia's OPEC partners that if they refused to hold an emergency meeting to discuss the current crisis in the market, his government reserved the right to take unilateral action "immediately." (David Ottaway, Washington Post, A13) -more- White House News Summary Monday, August 27, 1990 -- A-9 U.S. BUILDUP PUTS STRAIN ON SAUDIS Fosts Hand Over Air Bases, Box Lunches To Massing Americans AN AIR BASE IN SAUDI ARABIA -- In the past 2 1/2 weeks, the U.S. has inundated Saudi Arabia with more military weaponry and hardware than this country's own armed forces possess and with almost as many troops as comprise the 65, 700-man Saudi military. Operation Desert Shield has pushed the U.S. military's airlift and sealift capabilities farther than ever before. In the process, it is straining the ability of Saudi Arabia to support the largest buildup of military forces on its soil in modern history. "Some of our demands have been very, very high," said Army Maj. Gen. William Pagonis, who is directing the massive transport of ground forces and equipment at this base, which cannot be identified under U.S. military rules. "Even the United States would have a hard time moving into New Jersey and dumping the amount of soldiers we've dumped here." The Saudi forces have vacated entire airfields and other military facilities to accommodate the growing contingent of U.S. troops, which is expected to exceed 100,000 men and women within the next few weeks. (Molly Moore, Washington Post, A1) IRAQ so FAR HOLDS THE EDGE IN PROPAGANDA BATTLE WITH WEST A study of international broadcasting and press worldwide suggests that, so far, the Western allies are holding together to a degree that may surprise those skeptical of Western European and Asian resolve. But the U.S. may not be succeeding so well in waging the word war in the Middle East. First, the Iraqi government is successfully jamming American and British broadcasts in Arabic in the region, using equipment purchased from the West for its war with Iran. Second, the U.S. is typically not adept at understanding the nuances of the region, a problem that former officials of the Jimmy Carter Administration admit severely limited the success of the Camp David accords in the 1970s. Third, President Saddam's miscalculation of the Western response to his invasion of Kuwait may be more than matched by his skill at employing the code words and passions that move politics, at least among masses, in his own region William Quandt, of the Brookings Institution, said he thinks President Bush should direct more of his own actions at the international audience. There has been "no major statement, he said, "addressed to the Middle Easterners." Earlier last week, several Bush aides argued in private White House sessions that the President was actually harming U.S. interests abroad by not paying enough attention to how his remarks would be played overseas, according to a senior Administration source. They were concerned in particular about Bush's descriptions of Saddam as a "liar" and an "evil" force who had no regard for "human life.' (Thomas Rosenstiel, Los Angeles Times) -erom- White House News Summary Monday, August 27, 1990 -- A-10 MUBARAK: IRAQ MAY COMPROMISE CAIRO -- Syyptian Presider: Mubarak Sunday made an apparent plea to President Saddam to avert war by withdrawing from Kuwait. Asked if Saddam was likely to "make a deal" or "fight to the finish, " Mubarak told CBS's Dan Rather, "He may come to compromise" by withdrawing. There's no other way. Mubarak said if Saddam does not respond to global diplomatic measures, he fears "force may be used." Mubarak also admitted Saddam is in "a very tight corner" and "will meet terrible problems" from militant supporters if he pulls out now. The Egyptian leader also: * Said President Bush "will be in a difficult situation if he withdraws without" a solution * Said other Moslems don't believe Saddam's claim that the crisis is a "holy war. " * Said Saddam got very bad advice about being videotaped last week with hostage children. "It was very stupid." (USA Today, 1A) SUPPRESSED AT HOME AND DISMISSED ABROAD Prophetic Iraqi Opposition Considered Too Far-Flung, Fractious To Engineer Saddam's Overthrow LONDON -- As much of the world is drawn into a crisis spawned by the actions of President Saddam, one group feels entitled to say, "We told you so": Iraq's scattered and diverse political opposition. Ruthlessly suppressed at home, ignored, denigrated and at times betrayed by the West, and hopelessly divided among themselves, Saddam's opponents for years have been issued unheeded warnings about the Iraqi leader's expansionist goals and willingness to use weapons of mass destruction and Gestapo-style tactics against enemies foreign or domestic. Yet even within the Persian Gulf in crisis, they remain prophets without honor. Many Western analysts and intelligence specialists dismiss the opposition -- much of which is based here - - as too weak to play a significant role in overthrowing the Iraqi president or destabilizing his government. "We don't see them as particularly effective, said an official in the State Department, which this month rejected a meeting with one of the leaders of Iraq's Kurdish resistance movement. (Glenn Frankel, Washington Post, A13) -елош- White House News Summary Monday, August 27, 1990 -- A-11 END OF COLD WAR STRENGTHENS U.N. Gulf Acts Signal Harmony Not Seen Since nding U.N. -- After years of being dismissed as a failure and a forum for Third World demagoguery, the U.N. suddenly has been transformed into the mechanism through which the world community hopes to prevent the Persian Gulf crisis from becoming an arena of bloody warfare. It is perhaps the most dramatic illustration to date of how the long Cold War rivalry between the U.S. and the Soviet Union and their allies has been replaced by a determination to work together against threats to peace If there has been a discordant note in the U.N.'s approach to the gulf crisis, it involves the feeling of some Third World countries that the new harmony among the Security Council's members could erode the power of the General Assembly's larger numbers. That feeling led some to argue that any naval forces enforcing the embargo should be controlled by the U.N. (John Goshko, news analysis, Washington Post, A1) GULF CRISIS TESTS BAKER, 'SHEV' TIES The Persian Gulf crisis has highlighted the special relationship that has developed between Soviet Foreign Minister Shevardnadze and Secretary Baker, the superpowers' top diplomats. Beginning with their unprecedented joint declaration early in the crisis condemning Iraq's Aug. 2 invasion of Kuwait, Mr. Baker and Mr. Shevardnadze have been in almost constant contact, coordinating diplomatic strategies and fretting together over their trapped citizens. By an informal count, the secretary of state has talked with Mr. Shevardnadze no less than nine times in the last three and a half weeks The close working ties between the two men helped the superpowers avoid confrontation in the Middle East and was a key element in Washington's effort to build an unprecedented international coalition against President Saddam "They have both frank and cordial types of conversations," Margaret Tutwiler, Mr. Baker's spokesman and close aide, said recently. "They're both very straight with each other." (Warren Strobel, Washington Times, A7) PENTAGON SUSPENDS MEDIA POOL COVERING GULF CRISIS The Pentagon suspended its media press pool covering the Persian Gulf Sunday, saying it was no longer needed because Saudi Arabia was not permitting open coverage of operations there. "We are pleased that the government of Saudi Arabia has chosen to allow reporters to cover military operations in the gulf region," a Defense Department statement said. It said the pool was suspended as of 5 p.m. EDT because of the large numbers of reporters that had been allowed into the country. (Reuter) - White House News Summary Monday, August 27, 1990 -- A-12 SUNUNU-LED GROUP TO MEET WITH SOVIETS Officials will Discuss Presidential Process KENNEBUN PORT -- Another step in the improving relationship between the U.S. and the Soviet Union will take place this week with the arrival in Moscow of White House Chief of Staff Sununu and a delegation of top White House aides, who will spend the week advising the Soviets on how to organize a presidential office. Despite the continuing crisis in the Middle East, Sununu was to leave Washington Sunday night and, with a stop en route to meet with Finnish President Mauno Koivisto, arrive in Moscow late Monday. He and the others are to meet with Soviet officials on Tuesday and Wednesday, then depart for Leningrad for another day of meetings. The White House team is to leave the Soviet Union on Friday and stop in London, where Sununu is to meet with Prime Minister Thatcher, on the way back to Washington, arriving Saturday The fact that such a senior U.S. delegation will be leaving for Moscow in the middle of the gulf crisis speaks volumes about Bush's desire to nurture the improving relationship with Gorbachev. (Dan Balz, Washington Post, A15) Sununu's Smooth Operation Is Winning Over His Critics KENNEBUNKPORT -- White House Chief of Staff Sununu's managerial philosophy, which will be on display this week in an unusual visit to Moscow, is what he calls "the acorn theory of management." He says he would rather deal "with a couple of dozen problems when they're acorns rather than on big problem when it's become an oak tree." In practice, it means keeping his door open and giving aides ample opportunity daily to contact him on even the most trivial matters Brookings Institution scholar Stephen Hess calls Mr. Sununu "the big surprise of the Bush Administration." How has he done it? In part by working long hours, maintaining an open-door policy and displaying an ability to cut deals even with such liberals as Sen. Edward Kennedy "He's got an open door and an open mind," said Andrew Card, the deputy chief of staff and part of the delegation to Moscow. "He is not a micromanager. He does not do an awful lot of minutiae." (AP, Washington Times, A4) EDITOR'S NOTES: "with Embargo, U.S. Farmers Lose One of Their Best Clients," by William Robbins, appears in the New York Times, A9. "Japanese Feel Pressure On Aid For Gulf Effort," by Urban Lehner, appears in the Wall Street Journal, A3. ### White House News Summary Monday, August 27, 1990 -- A-13 NATIONAL NEWS FED'S CONCERNS OVER RECESSION ARE INCREASING GRAND TETON NATIONAL PARK, Wyo. -- Fed policy makers are increasingly concerned about the possibility of a recession in the U.S., and lean toward a modest easing of credit. But at the same time, Fed officials suggest they won't move to cut short-term interest rates until financial markets settle down. The crisis in the Middle East has caused the U.S. dollar and the bond market to fall sharply in recent days. That's the conclusion drawn from interviews with a half-dozen top Fed officials attending a conference here. Some spoke for the record; others asked that their names not be used. Their comments strongly suggest that at its meeting this past week, the Fed's policy-making committee adopted a directive that allows Fed Chairman Greenspan to reduce short-term interest rates modestly in the next few weeks, if market conditions allow. The panel adopted a similar directive at its meeting in early July. (Alan Murray, Wall Street Journal, A2) U.S. AGAIN SAYS GNP ROSE 1.2% IN 2nd QUARTER The economy wasn't quite as bad off in the second quarter as the government originally estimated, although overall growth was just as weak. After reviewing new data, the Commerce Department made minor revisions to its calculation of the second-quarter real GNP showing that personal spending and exports during the period were stronger than originally estimated. Business inventories, the new data showed, were smaller. (Hilary Stout, Wall Street Journal, A2) FBI DRUG PROBE TAKES DAY TO CLEAR THORNBURGH'S SON HARRISBURG, Pa. -- Allegations that Attorney General Thornburgh's son used drugs first surfaced here eight years ago, but they were looked into only last month in a federal investigation that consisted of two interviews over the course of a single day. Confirming that only two former friends of Mr. Thornburgh's son, William, had been interviewed, Justice Department spokesman Dan Eramian said the investigation was thorough and that it was not unusual to close an inquiry after just two interviews. He said FBI agents found no evidence of wrongdoing But a Harrisburg businessman, who described himself as a friend of the two men interviewed by the FBI, told a different story. "It was pretty common knowledge among the cocaine crowd in Harrisburg that Bill Thornburgh was doing drugs," said the businessman, now on probation for cocaine possession. (Jerry Seper, Washington Times, A1) - White House News Summary Monday, August 27, 1990 -- A-14 METHADONE MAKER DOUBLES PRICE; OFFICIALS WARN OF IMPACT ON TREATMENT EFFORT The main U.S. producer of methadone, the synthetic narcotic used to treat heroin addicts, is doubling its prices for the drug - - a move federal officials warn could result in thousands of inner- city drug abusers being denied access to treatment programs. The prices hike, announced recently by the Mallinckrodt Specialty Chemicals Co. of St. Louis, has raised concerns among Bush Administration drug policy officials and prompted some drug treatment administrators to accuse Mallinckrodt of exploiting its dominant market position to engage in "drug war price gouging." (Michael Isikoff, Washington Post, A8) EDITOR'S NOTES: "Discussing Yellowstone, Lujan Creates New stir," by Robert Reinhold, appears in the New York Times, A12. "GOP Fund-Raising Group Finds A Way To Get More Cash To Senate Candidates," by Jill Abramson, appears in the Wall Street Journal, A12. -end of A-section- White House News Summary Monday, August 27, 1990 -- B-1 NETWORK NEWS SUMMARY (Sunday evening, August 26) ABC's Forrest Sawyer: After long negotiations between U.S. and Iraqi officials, 55 dependents of American diplomats -- mostly wives and children -- were allowed to leave Baghdad to make the long and difficult journey overland to Turkey. ABC's Peter Collins reports from the Turkish-Iraqi border the bus carrying the Americans arrived on the Iraqi side of the border at mid-afternoon. U.S. officials waiting at the border have been disappointed to learn the Americans will not be coming out Sunday. They're hopeful the hostages will come out Monday, but given Iraq's record so far there are no guarantees. Sawyer reports while Iraq says peace talks are possible, it is still preparing for a fight. Officials are waging a propaganda campaign as Western reporters were shown Saddam's popular army. Ministry of Information officials, who only days ago were slow to answer reporters' requests, are now manning a table at the hotel where journalists are housed. And the Iraqi news agency stated Saddam's peaceful reply to U.N. Secretary General Perez de Cuellar's offer to negotiate the crisis. of course, Saddam said, the secretary general is always welcome. Shortly after that statement, Perez de Cuellar's office announced the secretary general will meet with the Iraqi foreign minister on Thursday in Amman. In Kuwait, Iraqi soldiers have rounded up eight more Britons and have a standing order to execute anyone sheltering foreigners. The standoff continues at the embassies, meanwhile. ABC's Bob Zelnick reports on the U.S. military buildup in the Gulf. To get U.N. authority to use force, diplomatic sources say the U.S. had to agree to place maximum reliance on political, not military means, to achieve Iraq's withdrawal from Kuwait. This was a distinct change in the administration's tone. Throughout much of last week, administration officials appeared to be signaling the U.S. could tolerate no solution which left Saddam Hussein in charge of an Iraq whose military power remains unbroken. But Sunday, on "This Week with David Brinkley," National Security Advisor Scowcroft suggested a political settlement would be acceptable. (Scowcroft: "If we can go back to the status quo ante in terms of Iraqi forces out of Kuwait and the leadership back in Kuwait and hostages released, there will still be a fundamentally different situation in that area.") For the moment at least, the word is a united international front and an embargo -- not an invasion -- will be used to get the Iraqis out. ABC's Jim Hickey reports on the economic problems of countries like Egypt caused by Iraq's invasion of Kuwait. ABC's Carole Williams reports Newsweek magazine polled people on which countries Americans feel are trying to help solve the Persian Gulf crisis. Japan fared the worst with only 18 percent if those polled saying Japan is doing as much as it can, 59 percent said Japan is not doing enough. -more- White House News Summary Monday, August 27, 1990 -- B-2 ABC's Mark Litke reports from Tokyo on the Japanese reaction to the Persian Gulf crisis. The Japanese government has been almost paralyzed wit: indecision since the crisis erupted. (Taizo Watanabe, Foreign Ministry spokesman: "It's very difficult because many people are suffering from this kind of Second World War trauma. We've got to be concerned about the possibility of the re-emergence of Japan as a military power.") Still, the Japanese are aware of the mounting criticism that Japan talks of support but so far has sent no money and no manpower. More public figures are hoping that the country will live up to its international responsibilities. (Taichi Masuzoe, political analyst: "Personally, I will be really embarrassed and I'll criticize our government and our prime minister.") The Japanese government is finally planning on sending medical supplies and financial support. (Watanabe: "This is the first ever venture in the post-War era that we are going to change our policy from passive to positive in the field of peacekeeping efforts.") ABC's Chris Bury reports from Indianapolis on the American Legion convention. The legionnaires talked tough and were itching for a fight with Saddam. (World War Two veteran: "In my day we wouldn't take that stuff. We'd go out and get him. We'd clean house with him. I'm not a' kiddin' ya'." Vietnam veterans were more cautious. (Miles Epling, National Commander American Legion and Vietnam veteran: "If we're going to get into a conflict, let's get in it to win. Let's don't get in it to do what we did in Vietnam.") ABC's Greg Dobbs reports on the families of soldiers sent overseas. Crisis counseling centers have been created at military bases to help the families cope. (ABC-Lead) [Editor's note: Most of the NBC broadcast was pre-empted) NBC's Garrick Utley: This week, on Thursday, U.N. Secretary General Perez de Cuellar will meet with Iraq's foreign minister, here in Amman, Jordan. The announcement came Sunday afternoon. The U.N. secretary general has said it is time for him to get involved as a mediator in this crisis, and his first job here will be to find out whether the Iraqis are interested in negotiating a withdrawal from Kuwait. Is this development going to complicate life for George Bush? NBC's John Cochran: No one on the Bush administration will put it this bluntly, but the only kinds of negotiations the United States is interested in are the kinds that Gen. Douglas MacArthur conducted in 1945 on a battleship in Tokyo Bay, the kinds where the enemy surrenders, period. As President Bush began his final week of vacation, he had a fine warm day, but he had a cool response to U.N. offers to mediate. (TV coverage: President golfing.) Administration officials responded politely but without enormous enthusiasm. -more- White House News Summary Monday, August 27, 1990 -- B-3 Cochran continues: (Assistant Secretary of State Felly: "We're not going to reject out of hand anybody who can contribute successfully to the improvement of the situation.") With his aide Brent Scowcroft, the President conferred by phone with Egypt's President Mubarak. (TV coverage: Still of President on phone.) Bush wants the allies to stand firm: no backing down from the demand that Iraq withdraw from Kuwait. Scowcroft said the only thing to negotiate is the timing of the withdrawal. (Gen. Scowcroft: "What is negotiable? I think the timetables of his getting out, exactly the modalities of it.") It's not clear whether timing was all Perez de Cuellar had in mind Saturday when the U.N. secretary general offered to meet with Iraqi officials, but Saddam Hussein quickly accepted the offer and it didn't take long to arrange the meeting next Thursday between the U.N. envoy and Iraq's Foreign Minister Aziz. (Aziz: "We are open-minded and we are open to listen to suggestions, to ideas. We have not closed the door for any idea and constructive suggestion.") President Bush's aides say he expects little, in anything, to come from this week's talks. They also say the President must give formal support to U.N. peace efforts. (TV coverage: President entering car.) The U.S. has gotten the tough anti-Iraq resolutions it wanted this month from the U.N. Now, it would be very bad form to undermine the U.N. peace mission. (Donald McHenry, former U.S. Ambassador to the U.N.: "If we were resistant to some diplomatic effort to resolve this question, I think we probably would lose some of the international support. There would be those who would say that the United States is on the warpath.") Ambassador McHenry said he expects Secretary General Perez de Cuellar will try to find some face-saving way for Saddam Hussein to back out of this crisis, but McHenry also said he does not think the secretary general will succeed. White House aides are equally pessimistic. NBC's Keith Miller reports from Baghdad Iraq's new recruits for its popular army look they will need a good deal of time to shape up. The mood in Baghdad, at least on the surface, appeared calm. NBC's Mary Alice Williams reports Prime Minister Thatcher says there will be no negotiating with Saddam. (Thatcher: "This man is a despot and a tyrant and must be stopped.") (NBC-Lead) CBS's Bob Schieffer: It's been fairly quiet in the region around the Persian Gulf Sunday, but there were several developments on the diplomatic front. U.S. Secretary General Perez de Cuellar announced Sunday afternoon that he will discuss the crisis with the Iraqi foreign minister on Thursday in Amman, Jordan. In Baghdad, 55 wives and children of the U.S. diplomats who have been trapped in Iraq were finally told that they could leave for the Turkish border. Iraqi authorities still refused to let the diplomats themselves leave. At the U.S. Embassy in Kuwait, where a skeleton staff of Americans is still in place, the standoff with Iraqi soldiers continued. At the Pentagon, more reservists and National Guard troops were called to active duty. -erom- White House News Summary Monday, August 27, 1990 -- B-4 CBS's Deborah Potter reports on the 55 U.S. Embassy dependents who werc allowed to leave for Turkey. At the U.S. Embassy in Kuwait the U.S. ambarsador and a handful of staffers are still surrounded by Iraqi troops, but official say the Americans will keep the flag flying for as long as possible. (Undersecretary of State Kimmitt: "They are up, they are functioning, the moral is good and they're doing what they can under difficult circumstances to serve the American community still there They are without power at this moment. They're operating on auxiliary means. Conditions are getting tougher by the day. (Ambassador Al-Sabah, Kuwaiti Ambassador to the U.S.: "The Iraqis are persecuting them. They are going from home to home, from apartment to apartment looking for these foreign nationals and we are trying to hide them away as much as we can. But some are being found. Sixteen Westerners and two more Americans were taken into custody this weekend and the roundups continue. Schieffer: In Kennebunkport, President Bush kept to his vacation schedule Sunday. He got in a round of golf after church and left most pronouncements on the crisis to his advisors. CBS's Wyatt Andrews: The President Sunday basked not only in perfect weekend weather, but in a growing sense of confidence Saddam has been check-mated. (TV coverage: President golfing.) White House officials Sunday even said they approve of U.N. chief Perez de Cuellar's proposal to start peace talks with Saddam, but made it clear any talks should focus only how Saddam might give up. (Gen. Scowcroft: "We're prepared to talk about anything after Saddam Hussein has withdrawn from Kuwait, has allowed the leadership of that country to come back and has released all the foreigners who want to leave. And what, if anything, would the U.S. negotiate? (Gen Scowcroft: "What is negotiable? I think the timetables of his getting out, exactly the modalities of it.") To the White House, the U.S. finally cornered Saddam early Saturday when the U.N. blessed the use of force against any ship doing business with Iraq. The Navy, which had been shadowing suspect ships, could now at any time decide to stop them. The other source of official confidence is that the blockade, even without the use of force, seems to be working. (Assistant Secretary of State Kelly: "We know that internal food prices are going through the roof for certain commodities like rice, sugar and so on.") As if to confirm the blockade has begun to bite, Iraqi officials Sunday began to publicly complain. (Iragi Foreign Minister Aziz: "Because the American blockade against Iraq might lead to the starvation of the Iraqi people, it might lead to the starvation of the Iraqi children.") Assured now that he's put the maximum diplomatic and military pressure on Saddam Hussein, the President's strategy is to wait. Outside of the two potential flashpoints -- harm to the hostages or a clash at sea -- this once hot crisis is evolving into a test of patience and nerve. -more- White House News Summary Monday, August 27, 1990 -- B-5 Schieffer reports Soviet Foreign Minister Shevardnadze said that Soviet ships would not use force to interdict ves els trying to bring supplies into Iraq, but; he added the Soviets will not interfere with other ships who use force to carry out the blockade. CBS's David Martin reports no interdictions have taken place yet probably because the embargo seems to be working on its own without force. Iraqi-flagged vessels are the only ships determined to defy the embargo and right now the Navy has nine of them under surveillance. They seem to be either empty or so far away from port that there is no immediate prospect that they will be able to unload their cargo. By one count, the Navy has stopped and searched 14 vessels but so far have not found any embargo runners. Schieffer reports Gen. Schwarzkopf has transferred his headquarters from Florida to Saudi Arabia. CBS's Bob Simon reports on the continuing U.S. military buildup in Saudi Arabia. What's coming in now is the equipment and the personnel which could launch an offensive against Kuwait or Iraq. Military planners say it will be another month before they've got what it takes. (Maj. Gen William Pagonis: "Our forces are growing rapidly and our combat power is growing rapidly and we're all here to sustain it for as long as necessary to bring the forces in.") U.S. AWACS Sunday spotted a lot of Iraqi air traffic going into Kuwait. Soldiers from around the Middle East are deployed in the desert. Predictably, however, U.S. commanders say they don't want any foreign multinational or U.N. strings attached, so it's basically an American operation. CBS's Dan Rather interviewed President Mubarak: Rather: Can Saddam Hussein withdraw from Kuwait and still remain in power -- still have face in this part of the world? Mubarak: After the invasion of Kuwait and the complete withdrawal from Iran, I think he has put himself in a very difficult corner. To withdraw again from Kuwait easily would be a disaster Rather: Can President Bush bring this much military power this far and not use it and still keep U.S. credibility in this part of the world? Mubarak: It depends on the situation, frankly speaking. Of course, I think that President Bush didn't bring all these forces just to use it right away. President Bush will be in a difficult situation if he withdraws without solving the problem. That's why he is using all ways and means to tighten the circle around Iraq. Rather: When this crisis is over, will it be more difficult or less difficult to find a solution to the Palestinian question? Mubarak: I think it will be a little bit easier to find a solution if the Kuwaiti problem is solved because occupying another's territory by force will be an example to the Israelis. Rather: Is Yasser Arafat's stature being increased or diminished by all of this? -елош- White House News Summary Monday, August 27, 1990 -- B-6 Mubarak: In our country it is diminishing Overall, he lost lots of his credibility all over this part of the brld. I can't say that he's finished, but his curve went down -- sharply. Rather: Is Saddam Hussein the kind of man who can look at all this military force arrayed against him and make a deal? Is he the kind of person who might compromise or is he a fight-to-the-finish, never-give-in person? Mubarak: I think he may come to a compromise. Rather: What kind of a compromise could there be? Mubarak: A withdrawal There's no other way out. Schieffer reports that hundreds of small defense contractors suddenly have more business than they know what to do with. (Lawrence Korb, defense analyst: "This is good for the defense industry because it shows people that even after the Cold War we will still need a defense industry.") The defense industry credits the Iraqi invasion with playing a major role in saving continued funding for the B-2 Stealth bomber. (Michael Lauer, Kidder Peabody defense analyst: "If the market is an accurate gauge of what may be ahead of us, then I think it's telling us that, unfortunately, fireworks may begin and I think the industry is going to do okay.") Schieffer reports Saudi Arabia and Venezuela asked OPEC for the go- ahead to exceed their quotas. According to an AAA survey, the price of gas has jumped nearly 20 cents a gallon since Iraq invaded Kuwait. CBS's James Citori reports on the stalled drive for increase fuel efficiency in cars. (Christopher Flavin, Worldwatch Inst.: "That momentum has now slowed down. We're dead in the water and we're not making the kind of progress that we need to.") Average economy is down slightly from 1988, all the result, say car makers, of consumers indulging in relatively inexpensive gas and bigger vehicles. If cars averaged 40 miles per gallon, the U.S. would save 2.8 million barrels of oil a day -- equal to the daily production of Iraq. (David Cole, auto analyst: "The biggest trick of all is to get the population to want to make the sacrifices associated with cars with that kind of fuel economy.") Experts say the one thing which will guarantee conservation and accelerated research into more efficient cars is perhaps the least likely course of action: a tax making gasoline in the U.S. as costly as in many other countries -- $2 to $3 a gallon. (CBS-Lead) BULGARIA Schieffer reports thousands of demonstrators sacked the headquarters of Bulgaria's former Communist Party. Police fired on the demonstrators with plastic bullets. (CBS-3, ABC-3) ### White House News Summary Monday, August 27, 1990 -- C-1 THIS WEEK WITH DAVID BRINKLEY Moderator: David Brinkley. Panel Sam Donaldson & Cokie Roberts. Guests: Jordanian Crown Prince Hassan, Henry Kissinger and Zbigniew Brzezinski, followed by Gen. Scowcroft. Brinkley: Do you see a peaceful way out of this? And, if you do, describe it for us, will you? Hassan: The continued emphasis on the conditionality of withdrawal of forces, or non-conditional withdrawal of forces, is very clear. An act of aggression has been committed; annexation is unacceptable to everyone, including my own country However, I note with interest that the United Nations secretary general has been invited to find a middle ground. And I think that that middle ground should surely include recognition of guarantees of non-aggression from that enormous build-up of troops south of Kuwait. I think we have to get the problem back into its component parts of Kuwait and Iraq, rather than just focusing on the international aspect of the problem. Brinkley: Is there a good chance of this coming about? Hassan: I think that President Waldheim's visit to Baghdad Saturday, was very clear. Saddam does want to negotiate, and he does want an interlocutor. So how that can come about, how we can get things into perspective, as President Bush has said, is the challenge to us all. Roberts: We have reports here that you and King Hussein have met with Yasser Arafat with a new peace plan of putting U.N. peace-keeping forces in Kuwait, taking the U.S. forces and the Iraqi forces out of the territory. Is that true? Hassan: There was not such a meeting in recent days. We are looking at talking points at the present time which we can, I hope, offer to the Iraqis -- and, indeed, to the world community, if and when that is possible. I think that outlining peace plans is premature because I think that we need discreet diplomacy at this stage and not up-front, media-type diplomacy. What we need to emphasize is, clearly, the withdrawal from Kuwait and, indeed, the future of that very complicated and historically complicated territorial issue between Kuwait and Iraq. Guests: Henry Kissinger and Zbigniew Brzezinski. Brinkley: If you were President Bush right now, what would you do? Kissinger: I would stick to the policy that President Bush has been pursuing. I would state the two objectives that he put forward -- withdrawal from Kuwait, and restoration of the government And I would be prepared to start withdrawing our troops, if those conditions are achieved. -елош- White House News Summary Monday, August 27, 1990 -- C-2 Brzazinski: I think the President has succeeded in Ceterring Iraq from acving a inst Saudi Arabi>. He has resisted the temptation to act alone and unilaterally. He now has the opportunity to bring to bear the collective pressure of the international community, thereby making possible some form of a regional solution along the lines that I thought very intelligently was being recommended by the crown prince of Jordan. Roberts: Mr. Kissinger, you've written that the United States has crossed the Rubicon here -- that it simply cannot lose, cannot be perceived as losing, but that time is not on our side Does that argue for a quick military strike? Kissinger: No. I think that the President has to balance a variety of elements -- maintaining international support as against the possibility of achieving the fundamental objective -- which he stated and which the United Nations has unanimously endorsed My basic point is, we cannot after the deployment into the Gulf march out of the Gulf without having achieved these objectives. And when the time has come to take other measures, that is not for me to say. And I hope that sanctions will work, and I hope that international pressure will work. And if that does work, we will have had a great success; but if it doesn't work, the consequence of a setback would be disastrous. Brzezinski: My judgment is that time is working on our side, that collective international pressure will work and that, in any case, the costs of unilateral and solitary American military action would be disproportionate to any possible achievement. I think it would explode the Middle East. It would turn not only the Arab community against us, but much of the international community -- and it could even jeopardize our vital interests. In fact, I think this is the first post-Cold War crisis in which America has the unique opportunity to fashion a new form of leadership -- leadership which is genuinely supported by the international community and gives us its moral sanctions; and that entitles us to exercise prudence and patience. Donaldson: How do you reduce the Iraqi military and perhaps their chemicals without military action? Kissinger: One is by military action. The other would be, if the sanctions are as effective as the advocates maintain, that the sanctions are maintained until the chemical facilities are either dismantled or put under United Nations' supervision. Donaldson: What about the question of whether the destabilization of Saddam Hussein ought to be one of our objectives? Brzezinski: The defense of Saudi Arabia is such a vital American interest that we should pursue it unilaterally. The expulsion of the Iraqis from Kuwait is a general interest which I think the international community can achieve by sustained pressure. The toppling of Saddam Hussein can only be achieved by force. That force could only be pursued by the United States. I believe we would be alone and, therefore, it is not worth it. -елош- White House News Summary Monday, August 27, 1990 -- C-3 Kissinger: My view is -- and apparently it's the view of the administration. as well -- is that, if this crisis ends with Iraqi forces in possession of Kuwait and American forces in Saudi Arabia, that the protection of Saudi Arabia and of the Gulf states will not be possible over an extended period of time -- that it would be possible only by the presence of a very large American force permanently, which would be a constant irritation and that, therefore, you cannot separate the future of Kuwait from the future of the Gulf area. Roberts: So that sounds like what you're saying is that you have to invade, that you have to take military action. Kissinger: I'm not saying you have to invade. I believe Iraq must be made to withdraw from Kuwait, which most people seem to think the sanctions can accomplish. And I'm saying that if the sanctions don't accomplish it, then we will face the problem that Zbig has mentioned, namely, the protection of Saudi Arabia by other measures. But I'm not recommending that for now. Brzezinski: It seems to me that, of course, the disgorging of Kuwait by Iraq is desirable. But if the choice is a prolonged American presence in Saudi Arabia with all the complications that Henry rightly mentions, or a solitary and largely unilateral American military effort to throw Iraq out of Kuwait, then I prefer the former to the latter. I prefer to sit in the sands in Saudi Arabia than to have American soldiers fighting through the streets of the city of Kuwait, taking very heavy casualties and precipitating an Arab anti-American explosion which could even destabilize the governments they were seeking to protect -- and thereby in the end even deprive us of the oil that we so vitally need. Donaldson: Apart from the views which you've both expressed this morning looking at the situation in total, do you expect that there will be major military action? Kissinger: I believe that Saddam Hussein is looking for some way out; and I think if we remain firm and if we keep open the prospect that we will not stop, he will settle. There will not be military action. Brzezinski: I think if we sustain collective international pressure with the United States actively involved, there will be some form of an intermediary regional solution, as discussed by Crown Prince Hassan. Guest: Gen. Scowcroft. Brinkley: There seems to be a feeling that we may have to sit for a time in the desert and wait for the sanctions to work and wait for other things to develop. In the meantime, in the United States, Saddam Hussein is playing for American public opinion very effectively which certainly will cause pressure in this country to build up on President Bush. Are you ready for that? White House News Summary Monday, August 27, 1990 -- C-4 Scowcroft: Yes, we're certainly ready for it. I'm not sure that it will take place exactly as you have outlined. WE just now have our strategy in place with the U.N. resolution passed early Saturday morning, and I think it's time now to see whether or not it will work. And that's what we're prepared to do. Roberts: We now have thousands of American troops in place at tremendous cost. We have thousands of Americans being held hostage in the region. Is it acceptable to us at this point after these kinds of expenditures to go back to the situation as it was before Saddam invaded Kuwait, to the status quo ante, or do we have to do something more dramatic than that -- get him out of the region or get his power out of the region? Scowcroft: If we can go back to the status quo ante in terms of Iraqi forces out of Kuwait and the leadership back in Kuwait and hostages released, there will still be a fundamentally different situation in that area, in that collective action will have been shown to work against a case of aggression; and, therefore, the situation will not be the same afterwards. Roberts: Speaking of that collective action, the U.N. secretary general has offered to go and negotiate. Is that something that would be acceptable to you? Scowcroft: I think it's clearly acceptable. Brinkley: Can you see a peaceful way out of this -- and if so, describe it for us? Scowcroft: Yes, I can see a peaceful way out of it I think that Saddam Hussein must now see that he's facing overwhelming world opinion, backed by forceful actions to sanction him, to prevent his commerce and economically to squeeze him. It seems to me that the course of prudence for a leader in this situation would be do what we're asking, what the world community is asking that he do. I see no reason that would prevent him from doing it. He has certainly, after launching a war in 1980, now given up all of the putative gains of that war. So he has shown that he can be a realist when it needs to be done. Brinkley: Henry Kissinger said a minute ago that he is looking for a way out. Is that your information? Scowcroft: I don't know. He certainly is showing that he is concerned by what is in place against him and some of his moves, which I think have not been very effective -- that is, the attempted use of women and especially small children -- to make his threats. But I think it shows that he is casting about for a way out of the box in which he finds himself. Roberts: What effect does it have to have someone like Waldheim go in there and get his people out? Does it make us look somehow that our hands are tied? Scowcroft: Oh, I don't think so at all. I think one can sympathize with the leader of a country wanting to get his own citizens out - White House News Summary Monday, August 27, 1990 -- C-5 Donaldson: What would it take to justify the use of American troops and the body bags that would come back to this country for President Bus: to make a decision to actually strike in a land war in that part of the war? Scowcroft: I think you could assume that if Iraq should launch a major assault into Saudi Arabia, it would be resisted forcibly and with considerable strength. Brinkley: We've heard a good deal lately about a "peace dividend" with the end of the Cold War and so on. Can we forget it now? Scowcroft: I think we have an entirely new situation in which we have to review the costs of what we're doing and make the appropriate adjustments. Discussion. Tom Wicker joins. Donaldson: The thought that we would send American forces in on land -- or for that matter anywhere -- to die in a war for the oil by itself is one that you have to think very hard about Wicker: I think it behooves us to look ahead and to begin to remove our dependence upon foreign oil Brinkley: Will there be a shot fired in the Middle East by us? Donaldson: I think not. Obvisouly, if they harm our diplomats or our citizens there we're going to have to take action. Short of that, I think the President's policy -- and if you listened to Gen. Scowcroft -- it seemed to me [they want] to give the blockade a chance to work It just seems to me a lot of people in this town and a lot of people on the air have just reveled in the idea that we're going to war -- our toughness -- that the American eagle has talons on its claws. I'd like to say to those people why don't you lead the charge ? We're going into recession in this country ### White House News Summary Monday, August 27, 1990 -- C-6 FACE THE NATION Moderator: Bruce Morton. Guests: Iraqi Ambassador the the U.S. Al-Mashat followed by Undersecretary of State Kimmitt. Al-Mashat: I think you should tell the people openly this is the biggest deception in history that we in Iraq are threatening anybody. We haven't taken anything from the United States. We haven't threatened you. We haven't threatened Saudi Arabia When we went into Kuwait it was the 2nd of August, you did not come in until the 8th of August. If we had harbored any design, we would have gone right through then. So let us tell the American people that this is the biggest deception in history. Morton: You are the one who says we are moving towards war. What the United States has done, as I understand it, is to send troops to protect Saudi Arabia in response to a Saudi request. That is not an invasion, as I understand the English language. Al-Mashat: Then there is no problem if this is the case as you claim. Morton: I don't think any American official has promised to invade Iraq. You keep saying we are going to do that. I don't know who the "we" is. But I don't recall any official of the United States government saying that, do you? Al-Mashat: Yes. I have heard many. Morton: Who? Al-Mashat: I have heard many that we are going to force Iraq out of Kuwait by all what it takes. What it means "by all what it takes?" Even they are talking about our president, many times, even they are talking about taking out Iraq by air. Why is this? Morton: Are the sanctions working, is Iraq short of food? Al-Mashat: Definitely the sanctions will affect us. But we are people with lots of pride and we are going to resist and we are going to give sacrifices, we will tighten our belt to defend our own country. We wanted peace, we have to talk peace, not to talk war because of this big armada that you have assembled -- it is not just to defend Saudi Arabia as you claim. You have to tell the American people the truth. God gave you a brain to think logically. Why you have the biggest ever, ever in American history -- to have such a big -- Morton: Because the Saudis asked the United States for help, and the United States sent troops. What's so extraordinary about that? Al-Mashat: And you needed such a big offensive troop? This is not defensive. - - - Guest: Undersecretary Kimmitt. - White House News Summary Monday, August 27, 1990 -- C-7 Morton: One of the Lebanese hostages was released. Any word on chances for anybody else ? Kimmitt: At present we have no other indication that others are coming out. Although I would certainly note that at a time Saddam Hussein is holding thousands of people hostage against their will the hostages holders in Lebanon and their sponsors certainly could put themselves at a distance from Saddam Hussein by letting the people in Lebanon go free. Morton: What's the rationale for keeping the embassy [in Kuwait] open? Kimmitt: The rationale for keeping the embassy open is that there is a legitimate government of Kuwait. We recognize that government. Morton: There was, but, I mean, it's gone. Kimmitt: It is not gone. It has been displaced by Iraqi force. But the United Nations Security Council in one of five unprecedented unanimous resolutions has declared the Iraqi annexation of Kuwait null and void. We, and many other countries, are keeping our flags flying for as long as we can to make clear that we and the rest of the civilized world stand behind the notion that there is still a legitimate Kuwaiti government and it should be restored promptly. We also, I might add, have still quite a number of American citizens in Kuwait, and, as I said, that's the primary function of our embassy -- to stay in touch with those people and to facilitate their departure. Morton: How effective are the sanctions? Do you have any word so far ? Kimmitt: I think they are becoming increasingly effective. I think the difference between this sanctions regime and past sanctions regimes is that it enjoys the virtually unanimous support of the world community. And therefore, I think that the sanctions are beginning to pinch more and more as each day goes by. We see that both in terms of the drop-off in supplies and revenues for Iraq. We also see it in Iraq's frantic attempts to circumvent the sanctions, which we and other nations are working very hard to stop. We do not want revenues flowing to a leader like Saddam Hussein who says that his first priority is to feed not his people, but his million-man army. Morton: How long might it take, do you think, for sanctions really to take hold, to cause such a degree of shortage or economic dislocation that Saddam Hussein would really have to do something, get out of Kuwait, invade Saudi Arabia, whatever? Kimmitt: I think that would be very hard to predict. I think again they will start to take an increasing toll as each day goes by. I think that the sanctions will have both a material effect, but we also hope that they would have a political effect, when he sees that the world community is not breaking ranks, that it is staying behind the U.N. Security Council mandated sanctions, that he would understand that he has only one way out, and that is to withdraw from Kuwait. -970m- White House News Summary Monday, August 27, 1990 -- C-8 Morton: Have American objectives changed? I mean the fact is now that if Saddam Hussein were to withdraw from Kuwait This noon, the United States wouldn't want to withdraw from Saudi Arabia, because they wouldn't trust him, they wouldn't be sure that he wouldn't go back two days later. Kimmitt: We certainly would like to see him withdraw at noon, completely, unconditionally, immediately. We would like to see the legitimate government restored. At the same time the President has made clear that one of the objectives that we seek to ensure is the free, uninterrupted flow of oil from the Persian Gulf. I think that we would assess the situation at the time upon his withdrawal. But we would certainly take those steps that are necessary to ensure that oil would continue to flow freely. At the same time I would note that your hypothetical did not posit the release of Americans held against their will in both Iraq and Kuwait. That certainly, too, would have to be accomplished before we could talk about next steps. Morton: Would the long-term interests of the United States require a new government in Iraq...? Kimmitt: I think that the leadership of Iraq should be left up to the Iraqi people themselves. I think what not only the United States but the rest of the world community needs to do is to ensure that Iraq does not pose a threat either to its neighbors or in a broader sense to people throughout the region Morton: Are we there for a long time, is this turning into a stalemate? Kimmitt: We are there for as long as it takes to accomplish the objectives that he President has set out. ### White House News Summary Monday, August 27, 1990 -- C-9 MEET THE PRESS Moderator: John Dancy. Panel: R.W. Apple and David Broder. Guests: Assistant Secretary of State John Kelly and Sen. Kerrey. Broder: What are we going to do about all this [in Iraq]? So far, we have a lot of deploring but not much acting. Kelly: I think we've done a lot more than deplore. We have gotten an unprecedented international response Broder: U.N. Secretary General Perez de Cuellar has suggested that he may try to negotiate; and there are some reports, at least, that Hussein would welcome that. Is this something that we would approve of and welcome? Kelly: I think the mandate for the secretary general has already been laid down in the Security Council resolutions: the withdrawal immediately of Iraqi forces from Kuwait; the restoration of the legitimate government of Kuwait; the freeing of all foreign citizens who are held in those two countries against their will; and a return to stability in that region. Dancy: Are you saying that Iraqi troops must pull out of Kuwait before the United States will sit down and negotiate with them about the future of Kuwait? Kelly: I'm saying that from the outset of this crisis 23 days ago, the President of the United States and the United Nations Security Council unanimously have been demanding the immediate withdrawal of Iraqi troops from Kuwait. Dancy: I know we've said that's an objective. But is that a precondition to talks? Kelly: No, we're willing to talk. We have our charge d'affaires, Joe Wilson, in Baghdad. He has been talking to the Iraqis; and, if they want to talk to him more, he's there and available We're not going to reject out of hand anybody who can contribute successfully to the improvement of the situation. On the other hand, the Iraqis know very clearly -- just like everyone else in the world -- what they ought to do; and that is stop this aggression and get out of Kuwait and free all these people they're holding captive against their will. Apple: Mr. Kelly, we've been saying what you just said for more than three weeks now How long do we wait to see whether economic sanctions are going to work ? Kelly: I think the economic sanctions are already pinching in Iraq -- I don't think that; I know that This is a boycott that is working, and economic sanctions that are real and genuine and will produce results. Apple: You're predicting, then, that Saddam Hussein will have to pull out of Kuwait, allow the restoration of the monarchy as a result of these sanctions? You just said it will work. - White House News Summary Monday, August 27, 1990 -- C-10 Kelly: I'm saying at the end of the day, the international community and legality and law and order will prevail. Apple: Without military force? Kelly: I hope without military force. Nobody wants to see a war over there. But certainly the international community has made it repeatedly clear what the government of Iraq has to do. Broder: Have we now undertaken a permanent commitment to the security of Saudi Arabia and the Gulf states? Kelly: I don't think we've undertaken a permanent stationing of land forces in that part of the world. I think we have demonstrated the American commitment to security and the American commitment to resist aggression. I mean, let's face it: a small state here has been conquered by a rapacious neighbor -- and the United States and the world community have responded. Dancy: Can you foresee a solution to this crisis that leaves Saddam Hussein in power in Iraq? Kelly: I'm not going to rule anything in or out. But, clearly, his own people must have something to think about Apple: With all of the flashpoints that we have -- the embassy, the hostages, shooting at Iraqi ships -- can we avoid setting something off, or can they avoid setting something off? Kelly: We certainly hope so but there's no reacting to aggression without an element of risk; and I think that's what the American forces out in the region face, but I know they don't want Broder: You said that we know that the blockade is beginning to pinch. What do we know specifically? What's happening inside Iraq? Kelly: We know that internal food prices are going through the roof for certain commodities like rice, sugar and so on. We know that there are bread lines. I've seen TV footage in the last few days of stores that appear to be fairly normal. I suspect that may be a put-up job. - Guest: Sen. Kerrey. Dancy: How do you feel after the commitment of 50,000 American reserves? Sen. Kerrey: I'm still very uncomfortable I mean, what it does is it increases the ante and changes the dynamic in the area. I mean, now you're talking about a massive retaliatory strike if Iraq were to penetrate into Saudi Arabia. So, I mean, it does change the dynamic substantially. Dancy: The congressional leaders have asked for a briefing from the White House on Tuesday morning. What is that all about? Are the Democrats about to go on the attack here? -елош- White House News Summary Monday, August 27, 1990 -- C-11 Sen. verrey: I don't know. I wasn't invited to the meeting so I don't know. like most of the American people, am learning about what's going on through whatever investigative journalism is permitted. Part of the problem is, in fact, at the first post-Cold War moment when we're putting Americans in harm's way, we aren't, it seems to me, being provided a sufficient amount of information to really engage meaningfully in a debate about whether or not this is appropriate. Dancy: You mean, you're being shut out by the administration? Sen. Kerrey: I know from reading the newspaper that it's hot in the desert and that the chow is bad I'm starting to get some additional detail about where the troops placements are; but it's generally after the fact. Now, there may be legitimate reasons for that Apple: If we have a stalemate in the desert, how long will people put up with it? How long will they keep patience with the President? Sen. Kerrey: Our troops are in Saudi Arabia and they're in harm's way I want us, the taxpayers, those of us who are safely back here at home, to put ourselves on the line as well. So I don't like this notion that somehow we're going to be able to do this for free here at home. And, as a matter of fact, I think the American people are demonstrating a willingness. They're being very tolerant of higher oil prices, even though they're grumbling a bit about it. And there's going to be a real cost to all of us. I think it is a demonstration that politicians can risk a bit as well. Apple: Are the American people going to want to take some affirmative action ? Sen. Kerrey: The truth is, you know, unless Colin Powell becomes George Bush's Maxwell Taylor, it seems to me that we do have an opportunity here to evaluate where and when we'll use American force in the post-Cold War era The President's strategy for preparing for a land war in Europe, preparing for a major war in Asia and having some sort of mobile forces ready as well as a nuclear deterrent was wrong. The first post-Cold War crisis has occurred in the Middle East; and it's likely to be that there will be additional crisis in South Asia. So it seems to me that our strategy has to be evaluated, as well as our long-term political and diplomatic strategy In general, have been blinded by money, it seems to me; and, as a consequence, we put into place policy that encouraged Hussein to become extremely strong. Broder: You've said you're uncomfortable. Are you saying that there is no American national interest in the Persian Gulf that justifies the President's decision to send troops in these numbers to that region? White House News Summary Monday, August 27, 1990 -- C-12 Ser verrey: The only justification that I find lec timate is the United States and to move quickly, we're the only nation that could move quick enough to prevent an invasion of Saudi Arabia. That justification I find legitimate I question a response that says that we're going to go there and have our young people die so that we can have cheap oil here at home, or cheap gasoline here at home. In fact, the United Nations Security Council resolution mentions nothing about oil Dancy: If that's the case, should Democrats then get behind an oil import fee to raise the price of oil and perhaps cut some of our dependence on it? Sen. Kerrey: I don't know what the Democrats ought to do, in truth I think it does have implications -- not just for Democrats but for the American people. We are going to have to conserve energy. I think we need to have higher CAFE standards for our automobiles. I think we ought to be looking for alternative fuels. It doesn't mean that we're going to be independent of oil entirely. But it does mean, it seems to me, that we are going to have to change our personal attitude and our personal habits Discussion. Garrick Utley joins. Dancy: If I were looking for a headline out of what I heard this morning, it would be, I believe, that the United States is willing to negotiate, is willing to have the good offices of the U.N. secretary general, and does not insist that Iraq leave Kuwait as a precondition for those talks. Utley: I would not agree with Iraq not leaving Kuwait. I wouldn't say I would go that far because, even if Perez de Cuellar goes to Baghdad he has these Security Council resolutions which call for a withdrawal, call for the foreigners being allowed to go. He cannot do anything else to go against those Security Council resolutions ### White House News Summary Monday, August 27, 1990 -- C-13 THE MCLAUGHLIN GROUP Moderator: John McLaughlin. Panel: Fred Barnes, Patrick Buchanan, Jack Germond and Morton Kondracke. Buchanan: I don't think the United States should want war because we'd lose thousands of men, we'd lose our hostages, our interests an people in the Arab world would be destroyed, and all this little sheikhdoms and kings and emirs we're defending in the Gulf would be rolled over at the convulsion that would happen. There are only two groups that are beating the drums right now for war in the Middle East, and that is the Israeli defense ministry and its amen corner in the United States. Barnes: The Bush administration decided they're not trying to provoke a war; they wouldn't have pulled the Marines out of Kuwait away from the embassy there if they wanted a provocation. They pulled them away to avoid a provocation. They're going to try to see if the economic blockade will work against Iraq Germond: I thought from the beginning it was wise to send those troops into Saudi Arabia. It was not wise to postulate such a strong position; it's an absolutist position that Bush did at the time because politically it is not sustainable in this country. McLaughlin: The joint chiefs of staff are urging the President that any military action against Saddam Hussein and his huge war machine must be sweeping, it must be deadly and it must be comprehensive. Do you agree with that? Kondracke: You could argue a different way. You could start attacking his military installations, his chemical plants, his nuclear weapons plants, his tanks, and then say okay, now get out. And if he doesn't get out you bomb some more We don't have to invade Kuwait. All we have to do is bomb his military installations and he's finished as a military power. McLaughlin: It's gotta be sweeping, it's gotta be simultaneous, and it's got to be deadly, and the joint chiefs are right. Buchanan: Iraq has an army of one million men. It is something like North Korea. It's not going to go out because of a couple of air strikes. Germond: The American people don't want [conflict] if it involves the lives of hundreds of hostages and thousands of troops for oil. The American people will not sustain the policy. Barnes: The polls show just the opposite. McLaughlin: Your objective must be once you use military force to topple Saddam Hussein. The President has been fishing and golfing. TV footage of the recreating commander in chief has been juxtaposed on the nightly news with shots of the soldiers in the sweltering Saudi desert Is too much being made of George Bush's being on vacation as he conducts affairs of state? -970m- White House News Summary Monday, August 27, 1990 -- C-14 Barnes: Of course too much is being made. This is entirely a media-generated controversy. Bush can do everythi g he needs to do there. He houldn't play gold -- he's a pretty lousy player There's no reason why he should let the Butcher of Baghdad decide whether he's in Kennebunkport or down in Washington. Germond: I don't think he ought to be dancing on Saddam Hussein's string. I think people think he's entitled to vacation. But the irony of this thing is that the Sununu's of the world -- they would have called those pictures good visuals three weeks ago. Now they're coming back to haunt them. And politically it is a stupid thing to do Kondracke: I think he should have come back from vacation when he called up the reserves. Now he is in a position of making people leave their jobs, or taking pay cuts, people leaving their families. That's the moment of solidarity with these people. Buchanan: A President needs to relax and think clearly, that's where he gets it. But he ought to realize that when he's on the golf course they're going to juxtapose those positions and politically it's a media problem and he's got to pay for it. McLaughlin: I'll tell you what's in the public interest: exactly what George Bush is doing. That is to contain expectations, not to put the country in a crisis mode as would be the case were he in the White House squirreled away He's got to stretch this thing out until the forces get there. Barnes: Bush should not be giving these photo opportunities out on the golf course. If he wants to talk to reporters he should drop by the press center and do that and then go out and golf on his own without the press. McLaughlin: Is Dan Quayle the Stealth Vice President? Barnes: He's participating as heavily as Jim Baker Buchanan: Some people are making the point that Jim Baker wants to distance himself from what seems to be a very military policy because he's not totally 100 percent in agreement McLaughlin: Is the press making too much of President Bush's minor recreational indulgences? Germond: I don't think it is smart long-run politics for him to play it this way. I think he ought to come back to Washington and tend to business now. I know he can do it there, but the people are very concerned about this thing McLaughlin: Whenever the Democrats need footage of the President burning a gallon of gas for every two miles traveled while we send American boys over there to fight for oil, they've got the footage they want. Barnes: It all depends on how this comes out. If he loses then they'll have a great issue. If he wins, they'll forget about it. White House News Summary Monday, August 27, 1990 -- C-15 McLaughlin: Do you think President Bush is a trifle too optimistic, possibly even gullible about the Soviet [advisors in Iraq}? Kondracke: I think he's giving them the benefit of the doubt in the hope that they'll come around Buchanan: The Soviet Union is playing a double game. You cannot have hundreds or thousands of advisors in Iraq without knowing what is coming. On the surface, they're with the United States Barnes: What they're figuring on is that this is not going to end with Saddam Hussein being bounced from power. He'll stay in power, they will have kept their ties open to him and they'll still have a friendly power over there in the Middle East. Germond: I don't know what in the world we could have expected the Soviets do beyond what they have done so far Anyone that imagines that this is really the international community coming together and likely to stay together in the Persian Gulf, they are kidding themselves. This is a U.S. operation and it is never going to be anything else. Buchanan: Five years from now America first is going to be the foreign policy of the United States partly as a consequence of this no matter how it comes out We [conservatives] believe that American blood should not be spilled in large quantities unless America's vital interests are at stake -- not democracy, not realpolitik, not somebody's idea of how the world ought to be ordered. McLaughlin: Next week, shooting in the Gulf? Buchanan: No. Barnes: No. Germond: No. Kondracke: Yes. McLaughlin: Yes. ### White House News Summary Monday, August 27, 1990 -- C-16 INSIDE WASHINGTON Moderator: Gordon Peterson. Panel: Tina Gulland, James Kilpatrick, Carl Rowan and Strobe Talbott. Peterson: If there is a shooting war, how much of a threat is it to our economy? Rowan: I think it's a serious threat to our economy We've already paid immensely for just the threat of war. Gulland: Big threat, but not as big in oil terms as the oil embargo of '73, and we can face it if we've got the will. Talbott: May turn out that the biggest casualty of this crisis is that we may not have a deficit reduction agreement this year. Peterson: What happens if the Iraqis move into the American Embassy compound -- actually invaded and take Ambassador Howell and other people into custody? Rowan: That's tantamount to invading the United States. That embassy is U.S. territory and it violates every diplomatic law that goes back almost to the days of Christ. Gulland: I think what was interesting was the decision to remove the Marine guards We don't want a fire-fight at the embassy to start what could be a worldwide war. And so I think we're being prudent even if he is violating absolutely every international norm and civilized norm. Talbott: The President is getting advice from two directions. One camp is telling him that time is on Saddam Hussein's side We need to seize the first provocation that comes along, and of course the violation of embassy property would be a very good one in order to pre-empt, in order to knock Saddam Hussein out of this thing once and for all. On the other hand, the President is getting advice from the center and certainly from the international community: The most important thing for him to do here is to keep the U.N. with him and to keep his Arab allies with him and that means not going in. Gulland: Part of the assumption in Washington has been that American will and public support will not stick with the President, and that's why time is on [Saddam's] side -- Kilpatrick: And that's a pretty valid assumption. Gulland: I don't know George Bush needs to move beyond what he did Monday in Baltimore, which is simply reiterate the first moves into the region. He's got to say why, what his vision is of being there long-haul, because it looks like a long haul and if he does there can be public support. Kilpatrick: This is not like what happened after Pearl Harbor I don't detect in my reading, in my conversations, any great wave of strong patriotic support. Rowan: I think there is White House News Summary Monday, August 27, 1990 -- C-17 Talbott: There's a huge difference here between this situation and the beginning of World War I, and that diff rence is that Iraq, Saddam Pussein, is all by himself Rowan: Where has the Secretary of State been? He's been out hunting in Wyoming and the rumors are all over this town that he disagrees with the policy and so forth. Talbott: I think the rumors are overdone about a disagreement between Baker and Secretary Cheney. I think the President has decided he wants to send a very tough, strong signal to Saddam Hussein and the Iraqis, and one way to do that is to let the Secretary of Defense and the Chairman of the Joint Chiefs of Staff to be very much out in front. Rowan: If this is just a signal, it's the costliest signal in human history. Kilpatrick: Do you go in right now and hit hard and destroy, and I think that probably is a better option than waiting and waiting and waiting because sanctions are not going to work. Gulland: Instantly you'd have the world saying we shot first and all those pictures would come back to haunt us Talbott: If Saddam Hussein goes down in flames, he could spread those flames very wide. He could do a great deal of damage throughout the Gulf setting whole oilfields on fire. The important thing here is who "we" are. "We" is not just the United States, it's the international community When George Bush prudently recrates in his Miami Vice speedboat there, he's' burning up 25 gallons of hydrocarbons an hour, by the way. I predict that if this thing ends in anything other than a clean win for President Bush, we are going to see lots and lots of tapes replayed of him zooming around off the coast of Maine. And where are we going to see them in 1992? In Democratic Party commercials. Gulland: I think this is a little bit of a bum rap; I think Bush did some lousy PR pics this week when he got in the golf cart and it took him a long time to finally put on a suit and tie and stand out in front of his vacation home with Cheney and Colin Powell and talk serious stuff. Rowan: I don't think it's a bum rap. I can understand that he doesn't want to appear to be hiding out in the White House, worrying about Saddam Hussein, but it is very insensitive when people are being called up from the reserves for him to be up there running around the golf course recreating. When you start calling up reserves you had better be right Talbott: We had another national security crisis before Saddam Hussein became a household word and it was called the budget -- it was called the deficit. I think that there would be huge and lasting damage from all of this if as a result of the Gulf crisis the President was not able to knock heads together -- including heads within his own administration -- and get a budget agreement before the end of this year. - White House News Summary Monday, August 27, 1990 -- C-18 Talbott: Saddam has reminded us that the post-cold War era is still going to be a very dangerous and tricky place. Peterson: Have we learned nothing [on energy conservation] over the past two decades? Gulland: When I said it was a bum rap, I don't mean that the Bush administration doesn't have a responsibility to look the conservation issue straight in the eye and try to construct some kind of a program that is going to make us not appear to be fighting a war for cheap oil I think when he got testy it was, wait a second, I've got to mobilize my troops and figure out what to do here. Next I'll turn to a conservation program, a foreign policy that addresses some of the broader issues in the Persian Gulf. Talbott: Remember poor old Jimmy Carter when he said that the energy crisis was the moral equivalent of war. That phrase has a certain validity and resonance that it didn't have maybe a few weeks ago. Peterson: Do you object to seeing the President on his boat, playing gc =, in an informal setting at his vacation home in Kennebunkpc c? Kilpatrick: I think it was insensitive, I certainly do. Bad public relations. This is a serious matter and by this vacation attitude the President diminishes the seriousness and undercuts the public support for this -End of News Summary- OF BOARD OF GOVERNORS OF THE OF THE FEDERAL RESERVE SYSTEM RESERVE DATE: 8/27/90 TO: Sec. Brady FROM: ALAN GREENSPAN R. Nick- Here is the lauguage we used on budget deal. A For release on delivery 9:45 a.m., E.D.T. July 18, 1990 Statement by Alan Greenspan Chairman, Board of Governors of the Federal Reserve System before the Committee on Banking, Housing, and Urban Affairs U.S. Senate July 18, 1990 -14- extent and persistence of the tightening of credit terms, the prospective path of potential output growth--especially in view of the recent slowing in the labor force--and the outlook for fiscal policy. It is the last of these that is the focus of the remainder of my - comments today. Fiscal and Monetary Policy Interaction The determination displayed by the Congress and the Administration in their efforts to come to an agreement on cutting the deficit has been enormously heartening to all who are concerned about the long-run health of the U.S. economy. As a nation, we have been saving too little and borrowing too much; significant progress on the federal deficit would be an important step in rectifying this situation. As you know, I favor not only eliminating the deficit, but also ultimately bringing the government's accounts into surplus over time to compensate for the private sector's tendency to save relatively little. In the long run, the nation's saving and investment behavior is crucial in determining its productivity and hence its standard of living. Major, substantive, credible cuts in the budget deficit would present the Federal Reserve with a situation that would call for a careful reconsideration of its policy stance. What adjustment might be necessary, and how it might be timed, cannot be spelled out before the fact. The actions required will depend on the constellation of other influences on the economy, the nature and magnitude of the fiscal policy package, and the likely timing of its effects. I can only offer the -15- assurance that the Federal Reserve will act, as it has in the past, to endeavor to keep the economic expansion on track. Phone call to AG Concerns that the Federal Reserve would be unable to offset 1.) 7 Economist undesirable macroeconomic effects of a budget pact are, I believe, 6 arper that largely unfounded. It is true that, in general, monetary policy cannot a 50B Cut be calibrated extremely finely in response to economic developments, as would produce we are all subject to imperfect data and an imperfect understanding of a isalt the myriad economic interrelationships of the real world. However, some Which doubts seem to focus on whether the various lags v] involved permit Couldn't monetary policy to catch up to a change in the fiscal stance. I am less be offset concerned on this point. We can decide that a policy adjustment is by appropriate and implement it fully, all in the same morning if need be, and the effects of the change will show through to interest rates and r> Af says financial asset prices almost immediately. Granted, the impact on money phy economic growth and inflation will be spread out over several quarters, lags are but this is true of changes in fiscal policy as well. n longer ten then In the final analysis, no one can guarantee that growth in the freat lags economy will proceed smoothly, without a hitch on a quarter-to-quarter basis. Nevertheless, a major cut in the budget is unquestionably the right thing to do. Because the federal government has been borrowing too much for too long, it is well past time to reduce the government's draw on credit markets and to free up more resources for enhancing investment and production by the private sector. In this way, fiscal policy, by augmenting national saving, will be doing its part to promote maximum sustainable economic growth. With monetary policy similarly keeping sight of its long-run goal of price stability, the two -16- together will have set a favorable backdrop for vibrant and enduring economic growth. Looking Ahead August-September 1990 27 28 29 30 31 1 2 3456789 Major International Events Soviet/Russian Republic experts RSFSR UNSC to report moves parliament permanent members toward market economy convenes discuss Cambodia NPT review conference in Geneva N.-S. CFE talks 10th anniversary of Solidarity Azerbaijan Korean EC finance resume legislative PMs meet ministers elections in Seoul meet in Rome Thatcher at EDU conclave 2+4 in Finland meeting in Berlin Visits to US Australian FM Evans in US (27-NYC; 28-DC) Honduran President Callejas in US Mulroney in Maine Visits Abroad Najibullah Pope John Paul II in Africa to India NATO SYG Woerner in Prague Sununu to USSR and UK Shevardnadze in Japan Mandela in Libya and Algeria Senator Hurd in Persian Gulf area Spanish PM Gonzalez in Stockholm Dole in Thatcher on official French PM Rocard in Canada Belgrade visit to Finland Chinese FM Qian to Turkey and Latin America J. Carter, Mitterrand, Walesa, and Havel in Norway AG Thornburgh in S. Korea and Japan POLITICS & POLICY HOW BUSH MANAGES THE PRESIDENCY He says he's dedicated to problem solving, and he's got a big one in Kuwait. Not to mention the S&L bailout and the deficit. Is it time for a little vision? by Ann Reilly Dowd OTHING tests a President like a Sorry, boys. In calm or crisis, manager completed." He understands the mechanics N world crisis. The one Saddam Bush is much the same: energetic, engaged, of government, and he loves to pull the le- Hussein handed George Bush in consultative, and ever cautious. While Ron- vers. While he respects the bureaucracy, he early August had just about every- ald Reagan governed with bold ideas ex- often circumvents it. going out of channels thing: blatant aggression. horrendous eco- pressed passionately and often, Bush prefers for information. He dives into the nitty- nomic ramifications. and no easy way for behind-the-scenes dealmaking with friends. gritty of policymaking. And yes, he likes to the U.S. to exercise its power. To make the Not only does he feel uncomfortable in the check who's playing on the White House testing even more severe, the Iraqi tanks bully pulpit, he believes public sabre-rat- tennis court and horseshoe pit, who's flying rolled into Kuwait just as a few other tling-whether aimed at recalcitrant Demo- on Air Force One, and who's sitting next to things were unraveling for the President. crats in Congress or an Arab dictator whom at White House dinners. Bush had wafted Bush hates contro- into his second sum- versy, values secrecy, mer on a cushion of CAROL POWERS THE WHITE HOUSE and delights in sur- good will. The Cold prise. He is cautious War was over. The but will take a calcu- economy was still lated risk. Though he growing, although reaches out for a sluggishly. Despite 13 broad range of opin- successful vetoes, ion, in the end he Bush's relations with turns to a very few Congress remained close aides, mostly in chummy. And his ap- the White House, proval ratings topped where power within the charts. the Administration Then his charmed has become increas- life abruptly ended. ingly concentrated. Bush broke his no- He delegates, but tax pledge. The price like a CEO who's of the S&L bailout held every job in the exploded to $100 bil- company, he some- lion-plus. and the times can't resist President was dra- penciling himself in. matically linked to With (from left) Boskin, Brady, Darman, and Porter: "At the top it's very small, very clubby." He insists on loyalty the scandal through and team play, but his son Neil's directorship of a bankrupt running amok-is counterproductive. In- make no mistake, he loves being captain of S&L. His deficit reduction talks with Con- stead he goes out of his way to build consen- the team. gress collapsed. and it looked as if he had sus one-on-one. behind closed doors. Yet. if given away the defining Republican issue Americans begin demanding bolder leader- HILE MOSTLY a plus, Bush's for nothing. His approval ratings dropped ship, and Bush seems stymied in the Middle W hands-on management style has sharply. When the Iraqi invasion sent oil East, he could stumble on vision as Reagan its minuses. During the abortive prices soaring and the Dow plummeting, did on details. coup against Panamanian murmurs began around Washington de- George Bush's is a high-energy, do-it- strongman Manuel Noriega that preceded manding stronger action. One Washington yourself presidency driven by a zest for the successful U.S. invasion, the President's disc jockey taunted: "Kick ass, George. problem solving-or as he put it in his ac- attention to detail proved paralyzing. Tak- Kick ass." ceptance speech at the Republican Nation- ing calls directly from the field, he turned REPORTER ASSOCIATE Jennifer Reese al Convention, "missions defined, missions the Oval Office into a military operations 68 FORTUNE AUGUST 27. 1990 In contrast to Ronald Reagan, Bush treats his staffers like family. But this baby really is family: the President's newest grandchild, Charles Walker Bush. center replete with maps and raw intelli- watching the news. reading reports. and Iraq by all countries. Throughout the early gence data that he personally ordered from talking to aides. hours of the crisis. Bush characteristically the CIA. Buried in unfiltered and often Though it turned out to be a very long revealed little in public. contradictory information, the President day, it included most of what Bush had on The President's emphasis on teamwork hesitated and the coup fizzled. his original calendar. He flew off to Colo- Since then, procedures for crisis man- has its occasional downside. Says one aide. rado for a scheduled meeting with Brit- "Sometimes controversial ideas and issues agement have emphasized more thorough ain's Margaret Thatcher. who joined Bush staffing. The invasion itself was a model of get swept under the rug." Adds former in strongly denouncing the invasion. In be- delegation. After Bush made the basic de- Bush chief of staff Craig Fuller: "Peopit tween meetings, speeches. and a press cision, he let Defense Secretary Richard tend to watch where Baker and [Budge' conference, Bush squeezed in detailed dis- Director Richard] Darman are coming Cheney and his generals mariage the oper- cussions by phone with the leaders of down on an issue, then fall into line ation. Between phone briefings by Cheney Egypt. Jordan, Yemen. and Saudi Arabia. every 20 minutes or so. Bush called world Sometimes the President may put to Though the Pentagon got three carrier much faith in individuals. After the Tian leaders to inform them of the U.S. action. battle groups moving toward the region, Bush's handling of the Iraqi crisis fol- anmen Square massacre. Chinese leader the President understood that his military lowed the same pattern. After he learned Deng Xiaoping, who once called Bush options were difficult at best. He worked of the attack around 9 P.M., he instructed "old friend." would not even return his for consensus among Arabs, whom he rec- phone call. U.N. Ambassador Thomas Pickering to ognized would be key to any move against call a meeting of the Security Council. His near obsession with secrecy can back- the Iraqis. While National Security Adviser Brent fire too. Had he talked with conservatives Bush did not have to phone Soviet Presi- Scowcroft worked through the night in the before breaking his no-tax pledge, Bush dent Mikhail Gorbachev. because Secretary White House situation room. Bush slept. might have avoided an embarrassing vote in James Baker was already meeting with Sovi- Scowcroft awakened Bush at 5, and the the House Republican conference against et Foreign Minister Eduard Shevardnadze any tax increases: His misinformation cam- President signed orders freezing Iraqi as- in Siberia. After flying to Moscow, they paigns have from time to time undercut his sets and blocking most imports. including made a joint statement demanding Iraqi oil. The President was in his office by 5:45, otherwise warm relationship with the press. withdrawal and an end to arms shipments to The presidential management style took POLITICS & POLICY shape during Bush's struggling days as a in New York. Says White House Chief of Beyond the Cabinet, Bush chose personal Texas oilman. Recalls younger brother Staff John Sununu: "He is a master of the friends for most top White House positions William "Bucky" Bush. who worked on small gesture." as well as some judgeships, ambassador- his rigs as a roughneck: "He knew all his With the exception of four years as a Tex- ships, and a surprising number of key agency people by their first names. He studied as Congressman, Bush's management expe- positions. Among them: the Peace Corps, the geological charts and logs to figure out rience has always been in executive jobs Federal Trade Commission, the Federal En- what properties to buy. Then he'd assem- where business was conducted mostly in pri- ergy Regulatory Commission, and the Over- ble rights, raise money to drill, and get a vate. Loose lips don't work for oilmen, party seas Private Investment Corp. DAVID VALDEZ-THE WHITE HOUSE HOUSE Flying to Kennebunkport with granddaughter Marshall Bush and dog Millie After a 6:30 A.M. breakfast in his private study, Bush pecks out notes. chunk of the common stock for his sweat chairmen, diplomats, spy masters, or Vice To drama seek- rs' dismay, the bickering equity." He was a risk taker, but within Presidents. A member of the secret Skull and has stopped. It's not that Bush's team lacks limits: Unlike many wildcatters, he didn't Bones Society at Yale, Bush reveled in the ego or differences of opinion. No one has personally guarantee anything. His deals cloak-and-dagger privacy of the CIA: He ever called Baker. Darman. or Sununu faint- always had more upside than downside. once stunned aides by coming to a meeting ing flowers. But in sharp contrast to the Most important, the young Bush placed a in a CIA disguise- red wig, a big nose. and high priority on people and trust. "In those Reagan years. Cabinet members and senior thick glasses. As Vice President he steadfast- White House aides have direct and frequent days deals were done on a handshake," says ly refused to tell even his closest aides what access to the President. He invites strongly Bucky Bush. "On closing day you'd whip up he was saying to Reagan. His Chief of Staff argued points of view and takes his time de- a two-page contract, then you were off and Admiral Dan Murphy told prospective em- ciding. But once he's spoken. he expects his running. The key was personal trust and ployees: "If you leak, you will be fired." Not troops to fall in line. Bush told a packed Re- knowledge of character-and boy, were surprisingly, his office was known asea tight publican fund-raiser on his 66th birthday in there some characters in Midland in those ship. Junes thank my lucky stars that we can days! If you didn't know the good ones from the bad, you were history." fight like cats and dogs in Cabinet meetings T THE WHITE HOUSE. Bush's Such personal skills helped George Bush boost morale at the Republican Na- A but once I make a decision. move on as a past is prologue. Outraged by the team." He also likes to point out: "Loyalty internal warfare that characterized is not a character flaw." tional Committee during Watergate, and the Reagan Administration. Bush at the CIA after congressional revelations Bush shares credit. often allowing his put a high priority on team play. While Rea- Cabinet Secretaries to announce new ini- of wrongdoing. At the CIA's Langley, Vir- gan turned to a headhunter to fill most Cab- tiatives. He also shares blame. After his ginia. headquarters. he often rode the em- inet and White House posts. Bush devastating defeat in the Iowa caucuses. ployee elevator instead of the personal one personally chose loyal and seasoned friends. reserved for the director. and he asked that his Iowa campaign manager Richard Bond Sitting around the pool at Camp David. said, "It's my fault." Replied Bush: "No. staffers call him George. (When he left a First Lady Barbara Bush told Environmen- year later. he received a standing ovation it's mine." Similarly, in policy battles the tal Protection Agency Administrator Wil- loser is rarely punished. More often he's in a crowded CIA auditorium.) His first liam Reilly, the only newcomer to Bush's day as President Nixon's Ambassador to built up. Shortly after Transportation Sec- inner circle. "I said to George: You know. retary Sam Skinner lost to Darman in a the United Nations. he shook every em- almost your entire Cabinet are our friends.' ployee's hand at the 12-story U.S. mission bid for more money for roads, bridges. and He said: Well. what would you expect?' other items of infrastructure. Bush invited 70 FORTUNE AUGUST 27. 1990 him to Kennebunkport for a weekend of Hill-before leaving the office around 6:45. tournament. Bush played 18 holes on foot- golf, boating, and family fun. At 6 A.M. on Says Deputy Chief of Staff Andy Card. a relishing every minute, save a few short Saturday, Skinner heard a knock on his former Reagan aide: "Reagan was comfort- putts. Said a weary cameraman at the sixth cottage door. When he opened it, he found able with structured events. Bush invites hole: "Hey, this is nothing. A few weeks ago the President in his robe, carrying a tray spontaneity. He manages by walking he played 18 holes, three sets of tennis, and with a pot of steaming coffee. "It's your around." wake-up call," said Bush. then went jogging. He never stops." One Most evenings the President has either a staffer calls such marathons "weekends While Reagan inspired his staff with a few formal event or dinner with friends. It's not from hell." big ideas articulated often and with feeling, unusual for him to phone Cabinet members, Bush keeps his team of problem solvers on Bush's warmth. energy, and accessibility staffers, or old friends on the spur of the mo- have saved him from the isolation that their toes with rifle-shot questions. Bred on ment to "come over for a beer and a movie." plagues the presidency. While Reagan was sports and socializing, he prefers people and Or he may go out to one of his favorite local Olympian with staff, Bush treats them like action to theory. He was raised in preppy restaurants. He never dines with four if he family. By now most have been invited to Connecticut, where grand notions passion- can find 40, and he loves house guests. Says ately expressed were considered freakish. some homey event at the residence, Camp one aide: "In the past the White House fam- While Reagan focused on a single issue of David, or Kennebunkport. Many have ily quarters were as accessible as the Dalai the day, Bush handles dozens at a time, often jogged, fished, motorboated, or played ten- Lama's palace. But with Bush. it seems the nis, walleyball, golf, or horseshoes with the blurring his message in a whir of activity. mattress in the Lincoln Bedroom is never When he talks off the cuff, sentences disap- boss. Most feel they get a fair hearing. At cold." He also may fit in some exercise- his first Cabinet meeting, he encouraged pear in a tumble of words and clipped maybe tennis, horseshoes, racquetball at the phrases. Even when he's listening, he's apt to calls and memos. When he gets them. he House gym, jogging at Fort McNair, or a fast be fiddling with something. promptly responds by phone. note, or com- game of golf. (He rushes through the ments scribbled in the margin. When Sun- course, rarely finishes, and never reveals his YPICALLY Bush begins his day at unu asked Cabinet members to keep him score.) informed of such communications, Bush cut 5:30 to strains of country music, af- Still, Bush manages most nights to spend in: "When you think of it." Nor has Sununu ter about 6½ hours' sleep. As he some time in his study on the second floor of been a bottleneck. Says EPA Administrator sips coffee and watches CNN, he the White House, where he skims the New York Times, the Washington writes more notes, reads up Post, the Washington Times, the Wall Street Even sorting lures relaxes Bush, as does real fishing in Wyoming. to 30 briefing papers, and Journal, USA Today-for the baseball signs decision memos. NUST scores-and the Houston Chronicle. By 6:30 Friends say he does not ago- he's eating a breakfast of grapefruit, coffee, nize over choices. When he and sometimes bran cereal in his private needs a break, he might fid- study behind the Oval Office, usually alone. dle with a favorite fishing Then there's an hour for reading, note writ- rod or box of lures he keeps ing on his electronic typewriter. and phoning in the closet. As he told his unsuspecting aides before his regular nation- brother Bucky: "I like to play al security briefing at 8:15. When Treasury with them. I put the orange Secretary Nicholas Brady caught a glimpse ones with the orange ones. of Bush walking from the residence to the The green with the green. I Oval Office for that briefing, his old friend check the lines. And I think and campaign chairman pointed to his watch about fishing off Islamor- in mock disapproval. Minutes later a note ada," the area in the Florida arrived in the Cabinet Room: "Brady, I've Keys where Bush has fished been at work since 7:10. I just got back from a for 20 years. meeting at the residence." Says Bucky: "He relaxes After his national security briefing, Bush with friends, family, and ex- meets with Sununu for up to an hour, work- ercise. It's part of his ecosys- ing through a briefing book of "action tem. It's the way we grew up. items" that could range from a California There were always games." poll to a speech draft to a legislative update. When the Trinity River Afterward his day is scheduled minute by flooded in Texas last May, minute with meetings and events until 4:30 Bush choppered into the or so, when Sununu returns with the "P.M. area and tromped around in agenda," a second notebook filled with the steamy heat. Then he items for the President's approval. flew on to Houston, landing Even with his tight schedule, Bush often at the Deerwood Country squeezes in spontaneous events-an unan- Club, where pro golfer Doug nounced appearance at a meeting, an im- Sanders, an old friend, was promptu news briefing, a quick lunch on the playing host at a charity golf POLITICS & POLICY Reilly. "During the Reagan years EPA ad- Margaret Thatcher, as well as several well- ing of Gorbachev, Kohl, and Mitterrand ministrators had problems getting access not known Soviet experts. also paid dividends in European affairs. just to the President but to Don Regan, the In such meetings Bush is moved by infor- Says former U.S. diplomat Robert Hormats, Chief of Staff. Such a thing is unthinkable in mation, not ideology. Says Brady: "He be- now vice chairman of Goldman Sachs Inter- the Bush White House." lieves if you do the pick-and-shovel work, national, who recently dined with Kohl: In general Bush prefers getting informa- the solution will jump out. He likes a discus- "Bush's personal diplomacy enabled him to tion from people rather than from memos. sion framed by facts." If he can't get the an- discuss a new European security arrange- So did Reagan. But while Reagan was swers he wants, he'll pick up the phone and ment with Gorbachev in Washington with- usually a passive participant. Bush is an call experts four and five levels down in the out the Germans feeling he was going active questioner. In preparation for Rea- bureaucracy. Nor does he suffer unprepared behind their backs. It's all about trust." gan's Soviet summits. the CIA produced pleaders gladly. When one Congressman In the domestic arena Bush is more likely movies and staged lectures. Bush's pre- questioned Bush's timid response to the So- to rely on the bureaucracy as a way of sort- summit briefings, by contrast. were inter- viet embargo of Lithuania, the President ing out different points of view. But even active events involving heads of state and shot back: "What do you have in mind? then he often pulls the management of poli- experts in and out of government. Before What should I say when Soviet tanks roll in? cymaking into the White House. The Ad- meeting Soviet President Mikhail Gorba- We'll be right there? We couldn't protect ministration's education, crime, child care, chev at the Malta Summit last year, Bush the Lithuanians under any circumstances. and clean air proposals were developed in got in touch with Prince Sadruddin Aga They're not even in our orbit." Or as he of- small meetings with Cabinet members Khan. a U.N. official involved in aid to ten asks recalcitrant aides: "If you're so around an antique table in the West Wing smart. why weren't you elected President?" office of Roger Porter. the President's do- MICHAEL Bush's independent style was evident in mestic policy chief. his nomination of Federal Appeals Court To whatever is done by staff, Bush adds Judge David Souter of New Hampshire for his own layer of personal intelligence gath- the Supreme Court. With his top aides di- ering for what national security types call vided, the President retired to his small "sanity checks." After the Senate sustained HOUSE study behind the Oval Office, where, as is his 11th veto (Amtrak) and before it took up his habit, he jotted down on a legal pad in his 12th (the Hatch Act revision), the Presi- order of importance short phrases outlining dent slipped up to the Hill for a friendly, the pros and cons of each candidate. He de- pulse-taking lunch with Senate Minority cided on Souter. a solid conservative jurist Leader Bob Dole, who was his GOP prima- without a paper trail on controversial issues ry rival but is now a staunch ally, and long- like abortion, then called his staff to tell time. friend and hunting buddy Alan them. Simpson. the Wyoming Senator who is mi- nority whip. A quick visit to the kitchen staff N FOREIGN POLICY Bush often cir- topped off the lunch. cumvents the bureaucracy. When a Before deciding to convene a budget lengthy government-wide foreign poli- summit, the President met separately in the cy review failed to produce the bold family quarters with Dole. Senate Majority arms control plan he wanted for his first Leader George Mitchell. House Speaker NATO summit. Bush turned to Baker, Sun- Thomas Foley, and Minority Leader Robert unu, Cheney, National Security Adviser Michel. Says Porter, who taught Harvard's Brent Scowcroft, and William Crowe, then course on the presidency before joining the chairman of the Joint Chiefs, to come up Bush Administration: "Every President with an alternative. Scowcroft proposed does some of this. But Bush does a great deep cuts in U.S. and Soviet manpower and deal more." planes in Europe. Bush liked the idea but wanted it studied more thoroughly by his HILE the President casts his net military advisers. Days later Crowe told W wide for information, he turns Bush the Pentagon could live with a 20% to a few key aides when it's time cut in manpower and a 15% cut in aircraft. to decide. Says one aide: "At the Bush often shines when jousting with reporters. Baker argued for a more dramatic 25% re- top it's very small. very clubby. There's lots duction. After checking with Cheney, Bush Afghanistan whom Bush had known since of camaraderie, humor. and male bonding. settled on 20%. "OK. that's consensus." his own U.N. days. Bush invited his old That's how the boys defuse tension and said the President. "Let's go." avoid burnout." The President's inner circle friend to Camp David for a discussion of He generally feels more confident on for- how Afghan factions were faring after the is filled with heavyweights, though of sur- eign than domestic policy issues. Aides say Soviet pullout. Before this year's summit prisingly different temperaments. There are Bush phones four or five heads of state a he spoke with West German Chancellor three hard-nosed competitors-Baker, Sun- week for a total that exceeds that of the last Helmut Kohl. French President François unu, and Darman-and two soft-spoken six Presidents combined. It's a habit that Mitterrand. and British Prime Minister and Scowcroft. A step removed helped mightily in the Iraqi crisis. His woo- from the inner sanctum are two brainy but FORTUNE mild-mannered professors: Porter, often fiddles with the final details the domestic policy chief, and Mi- Council of Economic Advisers. Chief White House counsel Boy- den Gray, an old Bush friend and DAVID VAIDEZ THE WHITE HOUSE at the last minute. He picked the chael Boskin, chairman of the exact dollar-and-cents increase for his minimum wage and federal employee raise proposals. After three discussions with Porter over tennis partner, is also a trusted what constitutes an assault rifle, he adviser. decided to propose a ban on all Bush is clever about using dif- automatic weapons with maga- ferent personalities for different zines that hold more than 15 tasks. Sununu, the brusque but rounds. brainy engineer and former New Accessibility and unpredictabili- Hampshire governor, plays bad cop ty are clever strategies for keeping to Bush's good cop. When Demo- the opposition off guard. In only 18 cratic Senator Daniel Patrick Moy- months Bush held 57 press confer- nihan proposed cutting Social ences, more than Reagan did in Security payroll taxes, some con- eight years, and many on less than servatives appeared to be circling an hour's notice. "How's the tem- favorably around the idea. The perature out there?" Bush often White House thought for a while asks Press Secretary Marlin Fitz- that the U.S. Chamber of Com- water. If it's rising, Fitzwater quick- merce might back Moynihan. Sun- ly briefs Bush on likely questions. unu reportedly phoned Chamber Then he's off to meet reporters. President Richard Lesher and Though wooden in formal speech- threatened to "cut your b---- off es, Bush's grasp of detail and zest with a chainsaw." The Chamber for competition let him shine when did not lobby for the proposal, jousting with the press, despite his which went nowhere. An ecosystem of support: first partners at dusk at Kennebunkport occasional woolly syntax. Fitzwater Darman, who has built a power- has never had to issue a correction. ful alliance with Sununu, is the President's Reagan years. He's often his own foreign a frequent occurrence with Reagan. Con- chief, economic strategist. Baker drives for- desk officer, political strategist, even his gress has also found it difficult to categorize eign policy. Scowcroft and Brady are trusted own office manager. When Bush discov- this President. While Reagan took bold counselors who mainly stick to their respec- ered that his correspondence unit was stands but then compromised, Bush focuses tive areas of expertise-defense and fi- 70,000 letters behind, he trotted down to quickly on what's possible. Faced with hope- nance. But the President knows neither has the letter-writing shop to see what the less odds, as in aid to the Nicaraguan contras. ambitions beyond making the Bush presi- problem was. The pace quickened and the he caves artfully and proclaims victory. When dency work, so they are often the last guys in backlog is down to a few thousand. he agrees with Congress on the objective- the room before the President decides. such as the Clean Air Act-he works closely Still, Bush has no single guru. He en- N MORE substantive issues his o with the opposition. When he thinks he can hances his personal power by sharing infor- peripatetic presence makes for a win, as in the case of his successful vetoes, he mation only on a "need to know" basis. very personal and unpredictable doesn't budge. Says Brookings Institution When Bush sent Scowcroft and Deputy Sec- pattern of decisions. When there scholar Thomas Mann: "He's a very adept retary of State Lawrence Eagleburger on a is controversy, Bush typically splits the dif- tactician." secret mission to China after the Tianan- ference. When the steel quotas were about But what about a strategic plan? When men Square massacre, he didn't tell Sununu. to expire last year, Labor Secretary Eliza- reporters bring up the "vision thing." When he met with congressional leaders be- beth Dole argued for a five-year extension. Bush's stock answer is: "Don't put me on fore calling a budget summit, he didn't tell Commerce Secretary Robert Mosbacher the couch. Don't analyze me." Insiders say his own congressional aides what he was go- and U.S. Trade Representative Carla Hills dealmaker Bush doesn't want to invite criti- ing to talk about. Though the President pushed for four with a reassessment after cism or limit his options by defining goals. drops FYIs to aides, his White House staff two. Boskin wanted only one, limited to cer- Outsiders wonder whether he knows what has long ago stopped trying to keep track of tain product lines. The President asked Por- he wants. Brother Bucky's explanation is all his private conversations. Says one aide: ter to propose an alternative. The final pure Bush pragmatism: "I think George "If the President is making the decisions, compromise was a 21/2-year extension for all would agree with investor Warren Buffett. the only important thing is that he keeps product lines. who says that long-range planning has ex- track." When there is consensus, Bush usually treme limitations, especially when it comes At times it seems no decision is too small goes with it-but not always. After the to macroeconomic policy. What really or innocuous for Bush. During the develop- Tiananmen Square massacre he bucked his counts are the day-to-day things. If you do ment of his 1991 budget, he made about 70 staff and vetoed a popular bill allowing Chi- well in the short run. the long run will take relatively micro decisions, most of which nese students to remain in the U.S. Even care of itself." So far in this Administration. would have been settled by staff in the when he goes with the broad consensus. he vision is what works today. Fri 10-Aug-90 17:56 EDT Bush not a 'hostage in the White House By TOM FERRARO KENNEBUNKPORT, Maine (UPI) Refusing to be "held hostage in the White House" by the Persian Gulf crisis, President Bush began his summer vacation in Maine Friday by levelling a salvo at Iraq's Saddam Hussein and zipping around in his speedboat. Bush said his planned 25-day stay at the family' seaside estate would be a combination of work and play keeping abreast of developments in the Middle East while enjoying such activities as tennis, golf and fishing. Speaking with reporters aboard Air Force One on the trip from Washington to Kennebunkport, Bush said he was comfortable with his decision to go ahead with his vacation while U.S. troops, planes and warships converged on the newest global hot spot. He stressed, however, that he would get constant briefings from aides, keep in touch with world leaders by telephone and, if needed, could return to Washington within as little as 90 minutes. Bush pointed out that he has "an excellent communications system," including phones on his red, white and blue speedboat and golf cart. The president also disclosed that Secretary of State James Baker would fly to Kennebunkport in the next few days to report on his visit to Turkey and meeting with NATO officials, and there may be a parade of other advisers arriving on the scene. "I am determined that life goes on," the president said. "I will have a busy schedule, busier than I would liked to have had. I have a list of calls I will be making over the next couple of days." "So it will be a different than I'd hoped, but I think I've done the right thing" by going ahead with the vacation, he said. The president dismissed as "radical rhetoric" Saddam's threat of a "holy war" against the United States in the Middle East. "He (Saddam) is so isolated so backed in a corner by world opinion" that the threat is merely "a frantic ploy to try to gather some support," Bush said, predicting "it's going to be ineffective." As for his vacation, the president said he felt it necessary to go ahead with his summer plans in the small fishing village that is dominated by the Bush family's Walker's Point estate. "What you don't want to do is appear held hostage in the White House to events," Bush said. "I'm not going to do that.' "Look, if I'm on vacation, I want to have a vacation,' he added. "I don't want to kid the American people that I'm working. "Play and play hard, and work like hell the rest of the time, when you're in Washington, and I think I've done that." Perhaps to underline his position, Bush took his speedboat, Fidelity, out for a cruise on the gray Atlantic shortly after arriving at the compound. Bush has spent every summer in Kennebunkport but one 1944, when - he was a Navy pilot. Before leaving the White House Friday afernoon, Bush sent a report to Congress consistent with the War Powers Resolution saying that he did not believe hostilities involving American troops were imminent in the gulf and that the deployment of U.S. forces would help bring about a "peaceful resolution of the crisis." He also sent Congress a request to exempt the armed forces from the automatic spending cuts required by the Gramm-Rudman balanced budget law if budget negotiators fail to reach a deal by Oct. 1. Bush planned to make a quick trip to Washington for briefings Wednesday, returning to Maine the same day. First lady Barbara Bush and several of their children and grandchildren accompanied the president to Kennebunkport. Street For all the tensions over a possible Gulf War, Bush managed a big smile and a quip when asked if he had any advice for Americans. "Yeah," he said. "Stay out of Kuwait and Iraq." Sat 11-Aug-90 11:49 EDT The Going Looks Tough for Many Incumbent Governors By WILLIAM M. WELCH Associated Press Writer WASHINGTON (AP) Kansas Gov. Mike Hayden's near-loss in a three-way Republican primary last week is the latest evidence that 1990 is turning into a mean campaign season for incumbents. Voters have lots of reasons to be dissatisfied with government - among them the savings and loan crisis, the federal budget deficit and the weakened economy. Their discontent already is shaping some of the 36 governor's races this year. "There's a loss of confidence in government," said Arkansas Gov. Bill Clinton, who is having his own difficulties as he seeks a fifth term. "There's a reserve of cynicism in the electorate for a variety of reasons, said Mark Gearan, director of the Democratic Governors' Association. "There's a concern among incumbents. But every state takes on a different hue and cast." Hayden won renomination in Kansas by fewer than 8,000 votes and 3 percentage points, after trailing through most of a long night of vote counting Tuesday. Hayden's political troubles stemmed from changes in the property tax system that had resulted in big tax increases for many Kansans. His predecessor, former Gov. John Carlin, who shared some of the heat for tax changes dating back to his term, lost a comeback bid and the Democratic nomination by fewer than 1,800 votes to Joan Finney, veteran state treasurer. An incumbent's advantage is strong, through the ability to raise money, generate publicity and use the powers of government. Yet Kansas is hardly alone in its unease with incumbents. Next door in Nebraska, Republican Gov. Kay Orr is at the top of the GOP endangered list as she seeks a second term. She's in trouble over tax increases and her belated admission that taxes had indeed been raised. To bolster her campaign, she's hosted visits from President Bush, Barbara Bush and Vice President Dan Quayle. Ronald Reagan is expected to show up, too. X Another shaky Republican, Florida Gov. Bob Martinez, is considered vulnerable because of his opposition to abortion, his vacillation on taxes and general doubts about his management ability. He's presented the Democrats with an opportunity to capture the governorship of one of the largest states, and one that will be a redistricting battleground next year. Democratic governors are having difficulty, too. Clinton in Arkansas, James Blanchard in Michigan and Rudy Perpich in Minnesota all have been in office for eight years or more and face their most serious challenges yet. Nearly all the New England governors have suffered along with the region's economy. And the three Democrats Michael Dukakis in Massachusetts, William O'Neill in Connecticut, and Madeleine Kunin in Vermont all decided not to run again. Meanwhile, Republican Govs. John McKernan of Maine and Edward DiPrete of Rhode Island are trailing their Democratic challengers in the polls. DiPrete's troubles stem not only from Rhode Island's flagging economy but also from personal ethics questions. His favorability rating has been as low as 17 percent in polls. While Democrats have yet to select their nominee, DiPrete trails all three Democratic contenders in one-on-one polling tests. Michele Davis, director of the Republican Governors' Association, says she doesn't see a wave of anti-incumbent sentiment washing across the governors races. Each, she says, is a victim of individual or regional difficulties. "I don't see it as an overarching theme or problem," she said. "Each incumbent is judged by their own merits." Clinton, however, says President Bush's break with his read-my-lips pledge against new taxes has contributed to an eroding confidence in government at all levels. "He said X and now he's doing Y," Clinton said. "It's hurting not just him, it's hurting all of us." In Clinton's case and a few others, another factor may be at work: voters are just getting tired of the same names and faces. Clinton has been on the Arkansas political scene since 1974 and he's only 43 years old. He's been governor for 10 of the last 12 years, including three two-year terms and one four-year term that ends this year. Now seeking a fifth term, Clinton is facing a strong challenge from Republican Sheffield Nelson, himself the victor in a tough primary. Polls show Clinton ahead, but Republicans say he fails to get more than 50 percent in their polls - giving them reason to believe he is vulnerable. Blanchard won re-election in Michigan four years ago with 68 percent of the vote, but he faces a tougher test this time. He's leading Republican John Engler, majority leader of the state Senate, but Republicans believe Engler is within striking distance. Blanchard vetded a restrictive abortion bill this year, and abortion could emerge as a big issue in the race. To top off his problems, his ex-wife Paula Blanchard, whom he divorced while in office, has written a book about their marriage and has embarked on a promotional tour. daily THE WHITE HOUSE MRS. BUSH'S PRESS OFFICE DAILY PRESS CLIPPINGS Monday, August 27, 1990 Mrs. Bush (in folder) Governor Sununu West Wing Marlin Fitzwater West Wing Patty Presock West Wing First Lady Detail Staircase Denise Balzano Room 268 OEOB Karen Connell Room 58 OEOB Shirley Green Room 94 OEOB Anne Griffith Room 98 OEOB Diana Kellogg Room 190 OEOB Gregg Petersmeyer Room 100 OEOB Carolyn Washington Room 268 OEOB Benita Somerfield hold one copy Ann Brock Kim Brady Julie Cooke Joan DeCain Laurie Firestone Susan Porter Rose Anna Perez Sondra Haley Jean Becker Jay Suchan (plus originals) 2D . MONDAY, AUGUST 27, 1990 . USA TODAY Rooting for Lee Atwater in his toughest campaign King's Things We visited Lee Atwater at George Wash- ington Univer- sity Hospital in the Nation's Capital. The GOP chief is giving it his all in a battle with a brain tumor LARRY KING'S and resultant complications People (some clotting causing swelling in the legs.) Lee says all his friends stay in touch daily and that he's constantly hearing from po- liticos as well. He said he has received visits from Barbara Bush and Dan Quayle. Atwater, a fighter from the word Go, says, "I'm hangin' in there, pal." 6A . MONDAY, AUGUST 27, 1990 . USA TODAY CAPITAL LINE USA TODAY'S BRIEFING ON WASHINGTON PEOPLE WATCH By Scott Perry, AP SON'S SUPPORT: President Bush helps his 89-year-old mother, Dorothy Bush,leave St. Ann's Episcopal Church after Sunday morning services in Kennebunkport, Maine. A church clergyman and Secret Service agent also assist. Bush aunt scares kln KENNEB UNKPORT, Maine - This whole town tensed up yesterday when two ambulances an-' swered an emergency call at President Bush's vaca- tion retreat, Walker's Point compound. It turned out that Nan- ey Walker, an elderly nunt of Bush's, fainted briefly, the White House said. She later was re- ported fully recovered. She is the older sister of Bush's mother. Doro- thy, 89. Their brother, Dr. John Walker, 81, died last week after being stricken at Walker's Point.- and Nancy Walker attended the funeral Tuesday in a wheelchair. The Associated Prees SUNDAY, AUGUST 26, 1990 TheWashington Post Value of The Dolls Paper Creations Are Making a Comeback By Irene Lacher Los Angeles Times Tom Tierney swears he has never seen. George Bush in his underwear. Kindly turn to Plate 1 of the artist's latest en- try in his motley stable of paper doll all-stars- the nation's 41st president and family in "full color" and minutely researched wardrobe. Ex- cept for the undies, that is. Even though Tier- ney's paper brainchildren spring full grown onto the page only after he studies their true-life garb down to the fabric swatch, when it came to Bush's skivvies, the ever-vigilant artist was forced to, well, guess. Plate 1, you see, is the actual doll, which al- ways comes nearly in the buff, except for Tier- ney's two-dimensional Pope John Paul II, who gets special dispensation from appearing in pub- lic in his drawers. "The publisher said, 'You have to be digni- fied," says the uber paper doll artist of our time. Don't snicker. Designer Bob Mackie called him someone who "probably knows more about glamour than anybody," Tierney says. Garbo once asked for his autograph. And the humble paper doll has made Tierney a millionaire. "They're just beautifully drawn," says paper doll expert Emma Terry, who writes, edits, cop- ies and ships the bimonthly Paper Doll News, See DOLLS, F7, Col. 1 TIERNEY Tem THERNOY Tom Tierney's first couple without the trimmings. PAGE / OF 2 THE WASHINGTON POST SUNDAY, AUGUST 26, 1990 F7 Still, even the humble paper doll is "Cleopatra is bare-bosomed, as is Paper But by the time the Depression seeing its day of resurrection. West- Nefertiti. We got a lot of fan mail They are women of a certain age ern Publishing Co., a Racine, Wis., from people who say, 'You have who remember playing with Mary The highlight of his collection is a company that bills itself as the larg- guts,' and the others say, 'Why Pickford paper dolls. They are histo- bitty French kitchen from the rians, of course. They are artists and 1850s. "It is in an alcove with cur- One collector, est commercial paper doll manufac- would you do a paper doll for chil- Doll turer, declines to disclose sales fig- dren with bare bosoms?' I write back art dealers, like Barb Rausch, a com- tains. The paper stove opens on a ics illustrator whose style is detect- Deanna Williams, ures but says the children's market and say, 'I'm sorry I offended you, hinge and there are paper sauce- for paper dolls seems to be growing. but they're historically accurate.' able to aficionados, even though her pans. There's a paper dresser with paper cups and saucers and the figures that if she And as far as the zealous adult So no cracks about Tierney's vir- Gollecting official Barbie paper dolls are un- market goes, you can thank Tom tually svelte Barbara Bush doll. "I signed. There is Evelyn Gathings, drawer opens and there are paper who resurrects the 19th-century knives and forks. The paper cook, he really wanted to, Tierney for putting paper dolls back think a lot of people were surprised on the shelves. Tierney, considered that I drew her as she is, but she's fashion of putting monkeys and in- has a paper hat you can take off and DOLLS, From F1 sects into costume. There is Noble you can put a ladle in his hand. It's she could sell her one of the most successful paper doll really not that big and fat. She's big- artists ever, is credited with trigger- himself, who draws on his own boned, as we say." circulation 225, from tiny Vivian, La. enchanting," he says. I would say he's about the best." sometimes fantastic experiences to But paper doll collecting isn't just collection and buy a Such details are important to pa- create such dolls as his bride, now Tierney, a 62-year-old New York- charm, nostalgia and fairy dust. It's ing a comeback for paper dolls. per doll folk, who figure that, in an- under construction, who trips down Rolls-Royce. She More than 1 million copies of his 58 er, is considered a paper doll celebri- big bucks these days. "Like the real other century or two, posterity will the aisle with a cat snoozing on her dolls, it's getting so it is quite an im- books are sold each year at $3.95 a look to these objects of their affec- ty to those in the know, a tiny but train. growing, offbeat and impassioned as- portant collecting area," Noble says. doesn t want to. pop, often in pairs-one to keep and tion for clues to the images of early sortment of grown-ups who meet, But the hard-core paper doll fan "It's not like collecting milk bottle one to cut. astronauts and mythical monsters, swap dolls that may run into the sets his sights quite a bit further caps. When you pay $2,000 for a Tierney, a former fashion illustra- to presidents and popes. thousands of dollars, research their than the nearest gift or museum handful of paper, the handful of pa- rolled around, paper dolls had be- tor, began a dozen years ago with Says Noble: "If you built a house history endlessly, study chatty news- shop, where some of the fancier pa- per is something precious and im- come America's favorite dime store paper dolls of such movie stars as in 1930, it's probably fallen down or letters, send each other paper dolls per dolls can be found. In fact, No- portant." toy-and an inspiration for genera- Joan Crawford and Marilyn Monroe you sold it. If you built furniture, it's instead of greeting cards and con- ble's own collecting preference "If I sold all my paper dolls, I could tions of designers: "One thing I and moved on to such unlikely play- tattered. But the paper things sur- vene once a year to dress up as fan- stretches back a couple of centuries. move into a smaller house, my clos- found out from designers was that mates as Gertrude Stein, Golda Me- vive. They somehow follow you tasy characters. "It's the earlier and earlier things ets are so full," says Williams, a col- every one of them started with pa- ir, Christian Science Church founder around the world. And, yes, they play with dolls too. that excite me," he says. "I'm not lege art history lecturer. per dolls as a kid," Tierney saysi dur- Mary Baker Eddy and the pope, "I have things that were made in play all day long," says John Darcy terribly into the late Victorian The trophies of this world, the ing a telephone interview. "Here are whose paper wardrobe includes a Yorkshire in 1810, and they're still Noble, a Vista, Calif., resident and things. I get excited about 1860, and ones that bring up to five figures at people making millions of dollars, historically correct ski outfit. here and they' still intact, although "toy curator emeritus" of the Muse- 1820, I'm jumping with joy. Eigh- auction, are the earliest paper dolls and paper dolls got them started. Tierney is particularly keen on re- houses and towns fall down in decay. um of the City of New York. "I have teenth century, I'm like a humming from France and Germany that date A lot of designers learned how searching wardrobe, to produce This is the great magic of paper. It's always played and I have never top." back to the mid-18th century, dolls to design through paper dolls." what he calls "biographical paper immortal." stopped playing since I was a child. His choicest pieces include tiny that paraded the latest fashions for The favorites were paper dolls of The most highly evolved animals toy theaters modeled after produc- adult aristocrats, or came with mov- dolls." Tierney's pope wears a wrist- the stars, Shirley Temple and the watch and leather shoes instead of are always playing-monkeys, tions of actual English melodramas ing parts to amuse the French court like. But by the '50s, the economical popular in the 1820s, European pa- in puppet shows. For decades, paper the traditional velvet slippers. When whales play all the time. Shirleys had succumbed to an even "Only stupid humanity has stopped dolls did the job of fashion magazines Tierney produced his book of the per dolls with moving parts, and "tin- more compelling force: Barbie. sel pictures"-paper dolls of knights and advertisements, championing presidential Kennedys, he consulted playing. The whole stupid world has "Barbie is indestructible," Tierney in armor that young boys would col- such products as flour. stove polish Oleg Cassini's assistants on color gone crackers." says. "No matter what they do to Noble is an aristocrat to Southern lect and decorate with bright bits, to and fabric, because most photos of and mercerized thread. And women her, she survives. When Barbie California's knot of enthusiasts, one be hung in English parlors. There is came out, here was a plastic doll that John and Jackie were black-and- studied them, in front and side a paper Noah's ark and tiny boxed was affordable. People switched. white. His insistence on accuracy of the country's larger groups of col- views, for fashion tips for make- PAGE OF 2 lectors, about 50 of whom meet reg- landscapes that you peep at through your-own wear. Betsy McCall, was a paper doll in has earned him mixed reviews, par- ularly. (Serious collectors are a se- a pinhole-an 18th-century castle McCall's, but finally Barbie killed off ticularly in the case of his paper The last people whom paper dolls lect group-there are only an with stags and hounds, a party at Betsy." Egyptian women. were intended for were children. estimated 1,000 nationwide.) Versailles and a hermit in his cell. THE PRESIDENT August 27, 1990 (Kennebunkport) Dear Mary, Many thanks for the note about General Wilson. Someone from the staff has already been in touch with him, and I've asked that other appropriate staff follow up. I hope all is well with you. Barbara sends warmest best wishes, too. Sincerely, per FROM THE WHITE HOUSE WASHINGTON D.C. Mrs. D. Eldredge Jackson Jr. Box 177 South Woodstock, VT 05071 Jan THE WHITE HOUSE WASHINGTON August 27, 1990 (Kennebunkport) Dear General Hultman: Please convey to all the members of the Reserve Officers Association of the United States my sincere thanks for the resolution in support of our efforts in the Persian Gulf. I am heartened by the widespread support of the American people for the efforts to enforce United Nations sanctions aimed at bringing about a withdrawal of Iraqi troops from Kuwait and restoration of Kuwait's independence. I am also encouraged by the number of other countries that have joined the international effort to defend Saudi Arabia against aggression. I remain committed to finding a prompt and lasting solution to the crisis caused by the Iraqi invasion of Kuwait, and the support of the ROA in this effort is very important. My thanks again. Warm regards. Sincerely, CyBl Evan L. Hultman Major General, AUS (Ret.) National Executive Director Reserve Officers Association of the United States No. 1 Constitution Avenue, N.E. Washington, D.C. 20002-5624 White House News Summary Monday, August 27, 1990 -- 1 12:00 NOON NEWS UPDATE GULF CRISIS (Kennebunkport/Tom Raum, AP) -- President Bush, buoyed by a crucial U.S. victory in the U.N., is exploring ways to increase pressure on Iraq's Saddam Hussein in talks with Prime Minister Mulroney. Before meeting with Mulroney today, Bush spent two-and-a-half hours fishing from a small boat without any luck. Afterward he was asked by reporters how he gauged U.N. chances in mediation talks with Iraqi officials scheduled to begin later this week. "Better than we did today," Bush cracked. IRAQ/U.S. DEPENDENTS (Lisa Genasci, AP) -- Iraq allowed 52 American detainees to cross into Turkey today and the U.N. Secretary General announced he would meet a top Iraqi diplomat, in tentative new steps toward a diplomatic resolution of the Middle East crisis. The Americans, dependents of diplomats from the U.S. Embassy in Kuwait who the Iraqis have refused to release, crossed into Turkey at the Habur border post early today and later flew to a NATO base at Incirlik, 320 miles to the west. Three members of the group, sons of diplomats, were turned back at the border by Iraqi officials, the State Department said in Washington The group's other members were to leave Turkey for the U.S. on Tuesday, said Sgt. Marty Davis, spokeswoman at Incirlik. IRAQ/WESTERNERS (Ruweished, Jordan/Peter Smerdon, Reuter) -- Iraqi troops are hunting for Westerners in Kuwait city, sending squads to scour fashionable apartment buildings, travelers reaching Jordan said on Monday. A Filipino technician, who asked not to be named, told Reuters he had seen heavily-armed soldiers searching buildings in the Salmiya district before he fled Friday The technician said he knew a group of 12 British, Canadian and American friends hiding in one apartment in an area where the search was closing in. "I don't know whether the Iraqis found them," he said. IRAQ/STATE DEPT. (George Gedda, AP) -- The State Department summoned Iraq's ambassador and informed him that new restrictions were being imposed on the movement of Iraqi diplomats, U.S. officials said. The restrictions were outlined by Deputy Secretary Eagleburger to Iraqi Ambassador Mohamed Al-Mashat. The nature of the restrictions was not disclosed. KUWAITI RESISTANCE (Abu Dhabi/Reuter) -- A Kuwaiti resistance group said Monday it would strike at Baghdad in retaliation for Iraq's invasion of Kuwait Aug. 2. A statement read out on Free Kuwait radio on behalf of what it called the "February 25 Movement" said Kuwaitis were determined to expel the Iraqi, 1 invaders and restore Kuwait's exiled emir Sheikh Jaber al-Ahmed al-Sabah. "We will work along with honorable and free Iraqis to hit the regime of Saddam Hussein in the heart of Baghdad, said the statement, monitored by Reuters in Abu Dhabi "We pledge to our people that we will burn the land under the feet of Saddam and his regime. Saddam will not enjoy a single inch of our dear land," the statement from the previously unknown group said. - White House News Summary Monday, August 27, 1990 -- 2 QATAR/FORCES (Nicosia/Reuter) -- Qatar Monday became the fifth Persian Gulf state to approve the basing of foreign forces on its territory to deter attack following Iraq's invasion of Kuwait. The Qatar News Agency, monitored in Nicosia, said a joint cabinet and consultative council meeting in Doha had approved the deployment of friendly forces in the central Gulf emirate The agency said Qatar's Emir, Sheikh Khalifa Bin Hamad al-Thani, briefed the meeting on Gulf deployments which made it necessary "for certain fraternal and friendly states to deploy military forces in the Gulf to repulse any possible aggression." (Doha, Qatar/AP) -- The state of Qatar joined other Arab states in the Persian Gulf in agreeing to extend military facilities to the multinational buildup confronting Iraq. An official statement after a joint meeting of the government and the Shura Council said Qatar "has agreed to extend military facilities to some friendly countries at their request." It did not specify which countries would be able to use the military facilities. IRAQI TANKERS (New York/Reuter) -- Iraqi vessels have been given new orders by Baghdad not to defy the Western blockade in the Gulf, CBS News reported Monday. CBS Pentagon correspondent David Martin said captains have been told to allow U.S. Navy ships to stop their vessels and board and search them The CBS report gave no source for its information and added there was no official confirmation. GULF CRISIS/PICKERING (George Gedda/AP) -- The Administration is expressing hope the Persian Gulf crisis still can be resolved without military conflict, if worldwide economic sanctions force Saddam Hussein to withdraw his forces from Kuwait. "He's a classic case of someone who is vulnerable to sanctions,' Ambassador Pickering said of Saddam "We're watching if the sanctions are going to bite and how rapidly,' Pickering said on NBC's "Today" Show "It might be a month or two before it begins to bite." OPEC PRODUCTION (Vienna/Sally Jacobsen, AP) -- OPEC ministers were moving toward an agreement allowing for a temporary increase in oil production to help fill the gap caused by the Persian Gulf crisis, sources said. Ten of the 11 nations of OPEC meeting informally in Vienna have agreed in principle to authorize an increase, said a delegation source, who demanded anonymity. "They see the need for some kind of OPEC sanction to increase production," he said. Only Iran, which contends there is enough excess oil in the industrialized world to meet any shortfall, was opposed, he said He said talks were continuing to work out the details. (Vienna/Joby Warrick, UPI) -- OPEC Ministers huddled behind closed doors for a second day Monday as Iran and other key members resisted efforts to convene an extraordinary formal conference to raise oil output quotas "I think this is not the necessary time to increase production -- maybe in the future, if we change the situation, but not now," Iranian Minister of Petroleum Gholamreza Aghazadeh said during a lunch recess. Earlier he told reporters it was "not necessary to have formal meetings" to boost output quotas. - White House News Summary Monday, August 27, 1990 -- 3 GAS PRICES (Los Angeles/AP) -- Gasoline rose more than a nickel a gallon at the pump in the past two weeks as motorists continued to feel the effects of the Persian Gulf crisis, according to a national survey. The average prices for all grades of gasoline rose 5.2 cents to $1.3316 a gallon, the Lundberg Survey of 3,500 gas stations reported Sunday. BIG OIL (Oxford, Ohio/UPI) -- Big oil companies are falsely pleading they are hostage to the crisis in the Middle East, a Miami University economist who believes there really is no competitive gasoline market said Monday "This notion that OPEC appeared on the scene and for the first time in its history supplies were tightly controlled is a fiction," said James Brock And contrary to what oil companies argue, there is no consistent link between the price of crude oil and the price of gasoline, Brock said. SHEVARDNADZE/CHINA (Beijing/Reuter) -- Foreign Minister Shevardnadze will make a brief stop in China Saturday on his way to Japan and will have talks with his Chinese counterpart on the Persian Gulf crisis and Cambodia. He will meet Qian Qichen in the northeastern city of Harbin, the official New China News Agency said Monday The New China News Agency gave no details of the substance of the Soviet foreign minister's planned talks with Qian. U.N./CAMBODIA (Bangkok/Angus MacSwan, Reuter) -- A U.N. peacekeeping force envisaged for Cambodia could be empowered to disarm combatants and control camps but would stop short of hunting down guerrillas, the U.S. deputy permanent secretary to the U.N. said Monday. THe military issue was one of five papers the permanent members of the U.N. Security Council were finalizing in New York over Monday and Tuesday to try to end 20 years of bloodshed in Cambodia, Ambassador Watson told reporters during a one-day visit to Bangkok. The U.S., the Soviet Union, China, France and Britain were expected to agree on the papers, he said. LEBANON BOMBING (Sidon/UPI) -- A car bomb exploded Monday in a Moslem Shiite village in southern Lebanon, killing six people, police said. They said the bomb in a Japanese-made car went off in the village of Houmine, 11 miles east of the port city of Sidon, 24 miles south of Beirut. Six people in the car were killed. EXISTING HOME SALES (John McClain, AP) -- Sales of existing homes rose 3.3 percent in July, their second straight increase, as mortgage rates dropped into the single digits, a real estate trade group reported. The National Association of Realtors said house resales totaled a seasonally adjusted annual rate of 3.44 million units compared to June's rate of 3.33 million But Realtor's President Norman Flynn said the recent mortgage rate increases [after the Iraqi invasion of Kuwait] probably will push down sales this month. PERSONAL INCOME (Vincent Del Giudice, UPI) -- Personal income increased 0.6 percent in July, while consumption slowed to 0.5 percent and the personal savings rate remained unchanged at 4.9 percent, the Commerce Department said Monday. ### White House News Summary Monday, August 27, 1990 -- 1 12:00 NOON NEWS UPDATE GULF CRISIS (Kennebunkport/Tom Raum, AP) -- President Bush, buoyed by a crucial U.S. victory in the U.N., is exploring ways to increase pressure on Iraq's Saddam Hussein in talks with Prime Minister Mulroney. Before meeting with Mulroney today, Bush spent two-and-a-half hours fishing from a small boat without any luck. Afterward he was asked by reporters how he gauged U.N. chances in mediation talks with Iraqi officials scheduled to begin later this week. "Better than we did today," Bush cracked. IRAQ/U.S. DEPENDENTS (Lisa Genasci, AP) -- Iraq allowed 52 American detainees to cross into Turkey today and the U.N. Secretary General announced he would meet a top Iraqi diplomat, in tentative new steps toward a diplomatic resolution of the Middle East crisis. The Americans, dependents of diplomats from the U.S. Embassy in Kuwait who the Iraqis have refused to release, crossed into Turkey at the Habur border post early today and later flew to a NATO base at Incirlik, 320 miles to the west. Three members of the group, sons of diplomats, were turned back at the border by Iraqi officials, the State Department said in Washington The group's other members were to leave Turkey for the U.S. on Tuesday, said Sgt. Marty Davis, spokeswoman at Incirlik. IRAQ/WESTERNERS (Ruweished, Jordan/Peter Smerdon, Reuter) -- Iraqi troops are hunting for Westerners in Kuwait City, sending squads to scour fashionable apartment buildings, travelers reaching Jordan said on Monday. A Filipino technician, who asked not to be named, told Reuters he had seen heavily-armed soldiers searching buildings in the Salmiya district before he fled Friday The technician said he knew a group of 12 British, Canadian and American friends hiding in one apartment in an area where the search was closing in. "I don't know whether the Iraqis found them," he said. IRAQ/STATE DEPT. (George Gedda, AP) -- The State Department summoned Iraq's ambassador and informed him that new restrictions were being imposed on the movement of Iraqi diplomats, U.S. officials said. The restrictions were outlined by Deputy Secretary Eagleburger to Iraqi Ambassador Mohamed Al-Mashat. The nature of the restrictions was not disclosed. KUWAITI RESISTANCE (Abu Dhabi/Reuter) -- A Kuwaiti resistance group said Monday it would strike at Baghdad in retaliation for Iraq's invasion of Kuwait Aug. 2. A statement read out on Free Kuwait radio on behalf of what it called the "February 25 Movement" said Kuwaitis were determined to expel the Iraqi, invaders and restore Kuwait's exiled emir Sheikh Jaber al-Ahmed al-Sabah. "We will work along with honorable and free Iraqis to hit the regime of Saddam Hussein in the heart of Baghdad," said the statement, monitored by Reuters in Abu Dhabi "We pledge to our people that we will burn the land under the feet of Saddam and his regime. Saddam will not enjoy a single inch of our dear land," the statement from the previously unknown group said. -more- White House News Summary Monday, August 27, 1990 -- 2 QATAR/FORCES (Nicosia/Reuter) -- Qatar Monday became the fifth Persian Gulf state to approve the basing of foreign forces on its territory to deter attack following Iraq's invasion of Kuwait. The Qatar News Agency, monitored in Nicosia, said a joint cabinet and consultative council meeting in Doha had approved the deployment of friendly forces in the central Gulf emirate The agency said Qatar's Emir, Sheikh Khalifa Bin Hamad al-Thani, briefed the meeting on Gulf deployments which made it necessary "for' certain fraternal and friendly states to deploy military forces in the Gulf to repulse any possible aggression." (Doha, Qatar/AP) -- The state of Qatar joined other Arab states in the Persian Gulf in agreeing to extend military facilities to the multinational buildup confronting Iraq. An official statement after a joint meeting of the government and the Shura Council said Qatar "has agreed to extend military facilities to some friendly countries at their request." It did not specify which countries would be able to use the military facilities. IRAQI TANKERS (New York/Reuter) -- Iraqi vessels have been given new orders by Baghdad not to defy the Western blockade in the Gulf, CBS News reported Monday. CBS Pentagon correspondent David Martin said captains have been told to allow U.S. Navy ships to stop their vessels and board and search them The CBS report gave no source for its information and added there was no official confirmation. GULF CRISIS/PICKERING (George Gedda/AP) -- The Administration is expressing hope the Persian Gulf crisis still can be resolved without military conflict, if worldwide economic sanctions force Saddam Hussein to withdraw his forces from Kuwait. "He's a classic case of someone who is vulnerable to sanctions," Ambassador Pickering said of Saddam "We're watching if the sanctions are going to bite and how rapidly," Pickering said on NBC's "Today" Show "It might be a month or two before it begins to bite." OPEC PRODUCTION (Vienna/Sally Jacobsen, AP) -- OPEC ministers were moving toward an agreement allowing for a temporary increase in oil production to help fill the gap caused by the Persian Gulf crisis, sources said. Ten of the 11 nations of OPEC meeting informally in Vienna have agreed in principle to authorize an increase, said a delegation source, who demanded anonymity. "They see the need for some kind of OPEC sanction to increase production," he said. Only Iran, which contends there is enough excess oil in the industrialized world to meet any shortfall, was opposed, he said He said talks were continuing to work out the details. (Vienna/Joby Warrick, UPI) -- OPEC Ministers huddled behind closed doors for a second day Monday as Iran and other key members resisted efforts to convene an extraordinary formal conference to raise oil output quotas "I think this is not the necessary time to increase production -- maybe in the future, if we change the situation, but not now," Iranian Minister of Petroleum Gholamreza Aghazadeh said during a lunch recess. Earlier he told reporters it was "not necessary to have formal meetings" to boost output quotas. -erom- White House News Summary Monday, August 27, 1990 -- 3 GAS PRICES (Los Angeles/AP) -- Gasoline rose more than a nickel a gallon at the pump in the past two weeks as motorists continued to feel the effects of the Persian Gulf crisis, according to a national survey. The average prices for all grades of gasoline rose 5.2 cents to $1.3316 a gallon, the Lundberg Survey of 3,500 gas stations reported Sunday. BIG OIL (Oxford, Ohio/UPI) -- Big oil companies are falsely pleading they are hostage to the crisis in the Middle East, a Miami University economist who believes there really is no competitive gasoline market said Monday "This notion that OPEC appeared on the scene and for the first time in its history supplies were tightly controlled is a fiction," said James Brock And contrary to what oil companies argue, there is no consistent link between the price of crude oil and the price of gasoline, Brock said. SHEVARDNADZE/CHINA (Beijing/Reuter) : Foreign Minister Shevardnadze will make a brief stop in China Saturday on his way to Japan and will have talks with his Chinese counterpart on the Persian Gulf crisis and Cambodia. He will meet Qian Qichen in the northeastern city of Harbin, the official New China News Agency said Monday The New China News Agency gave no details of the substance of the Soviet foreign minister's planned talks with Qian. U.N./CAMBODIA (Bangkok/Angus MacSwan, Reuter) -- A U.N. peacekeeping force envisaged for Cambodia could be empowered to disarm combatants and control camps but would stop short of hunting down guerrillas, the U.S. deputy permanent secretary to the U.N. said Monday. THe military issue was one of five papers the permanent members of the U.N. Security Council were finalizing in New York over Monday and Tuesday to try to end 20 years of bloodshed in Cambodia, Ambassador Watson told reporters during a one-day visit to Bangkok. The U.S., the Soviet Union, China, France and Britain were expected to agree on the papers, he said. LEBANON BOMBING (Sidon/UPI) -- A car bomb exploded Monday in a Moslem Shiite village in southern Lebanon, killing six people, police said. They said the bomb in a Japanese-made car went off in the village of Houmine, 11 miles east of the port city of Sidon, 24 miles south of Beirut. Six people in the car were killed. EXISTING HOME SALES (John McClain, AP) -- Sales of existing homes rose 3.3 percent in July, their second straight increase, as mortgage rates dropped into the single digits, a real estate trade group reported. The National Association of Realtors said house resales totaled a seasonally adjusted annual rate of 3.44 million units compared to June's rate of 3.33 million But Realtor's President Norman Flynn said the recent mortgage rate increases [after the Iraqi invasion of Kuwait] probably will push down sales this month. PERSONAL INCOME (Vincent Del Giudice, UPI) -- Personal income increased 0.6 percent in July, while consumption slowed to 0.5 percent and the personal savings rate remained unchanged at 4.9 percent, the Commerce Department said Monday. ### George Bush Presidential Library Transfer Sheet COLLECTION: ACCESSION NUMBER: Bush Presidential Records 1993.0001 FOIA/SYSTEMATIC Office of the President PROCESSING CASE NUMBER (if app.): Transferred During Accessioning 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: P15340-07 [Sam LeBlond plays with Mulroney boy]; P15336-17A [Barbara Bush and Mrs. Mulroney]; P15333-17A [Fishing w/Raynor]; P15322-01 [President Bush and Brian Mulroney] 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 59 Folder Title: OA/ID Number: Monday, August 27, 1990 90558-005 Transferred by: Deborah Wheeler Date of Transfer: 9/2/2010 Received by: Mary Finch Date Received: 9/2/2010 Go to Database Go to Accession Go to Withdrawal Sheet Print Record Navigator Register Bush Presidentia Library Photocopy Bush Presidential Library Photocopy Bush Presidential, Library Photocopy - OFFICIAL WHITE HOUSE PHOTOGRAPH 27 AUG 90 P15336-17A CP Bush Presidential Library Photocopy DAY B Bush Presidential Library Photocopy OFFICIAL WHITE HOUSE PHOTOGRAPH 27 AUG 90 P15322-01 DV Bush Presidential Library Photocopy