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Independent Insurance Agents of America 3/14/89 [OA 6343] [2]
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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:
Speechwriting, White House Office of
Series:
Speech File Backup Files
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Chron File, 1989-1993
OA/ID Number:
13661
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13661-003
Folder Title:
Independent Insurance Agents of America 3/14/89 [OA 6343] [2]
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26
18
7
2
Looking Forward
LOOKING FORWARD
EITHER AN A OR A Z
67
the Row about the inside
Nash Dowdle instead, for $151.50 an acre. Apparently his "bond"
was worth $1.50 an acre.
e were about to say our
According to the recent news, our friend Hugh Liedtke is still
spoke. "Okay," he said
making oil deals on a handshake; but he seems to make them a bit
like that. I was braced for
more profitable.
he made his decision on
on the project as on us.
Γ. Meyer rolled down the
Bill and Hugh Liedtke still had their licenses to practice law,
ood tax proposition?" We
but their law books, except for the ones on leases and mineral
d, "then put my son-in-
rights, were gathering dust. The Liedtkes had long since aban-
doned the courthouse for the oil fields, as independent oil opera-
as well as we'd hoped,
tors with offices next door to Bush-Overbey. Then, in 1953, Bill
:ors came out ahead. But
and Hugh suggested we join forces: they'd raise $500,000, Bush-
d other oil-business deal-
Overbey would raise $500,000, and the two companies would be
ible, all enjoyable.
rolled into one entity. We'd buy producing properties on the oil-
payment plan, with the $1 million for equity.
Agreed. Now, what would we call our new company? Late one
-bey, 1986
night, Hugh and I were going over possible names. We wanted
few good deals and a few
something that would attract attention, a company name that
the black the entire three
would "stand out," as Hugh said, "when somebody opens the
boom began to fade in
phone book."
ry boom. We were active
Deep-voiced, with a pronounced Oklahoma drawl, Hugh was
e trade in particular you
impressive even in his younger days, before he became "Mr.
Pennzoil," a legend in the U.S. domestic oil industry.
lived in East Texas, and
"It ought to start with either an A or a Z. he said, "so it comes
rt of his Reagan County
either first or last in the pages under 'Independent Oil Operators."
agreed, you suggested an
Nothing in between that could be lost in the shuffle-that was
writing. The East Texas
Hugh's m.o. right from the start.
1 and "My word is my
The movie Viva Zapata!, starring Marlon Brando, was playing in
downtown Midland. It was the story of Emiliano Zapata, the Mex-
patch myth that a hand-
ican rebel leader who led a revolt for land reform in the early 1900s
d to forego the exchange of
under the slogan "Tierra y Libertad"-"Land and Liberty." We
ft in the mail. Ten days
couldn't afford a public-relations counsel, but if we had one he
so you called him again.
would have told us that was exactly the corporate image we were
aft but sold the property to
looking for.
68
LOOKING FORWARD
And that's the way Zapata Petroleum was born. The following
year it would spin off Zapata Off-Shore, and in time, under Hugh
Liedtke's imaginative management, merge into Pennzoil.
Zapata: There was a winning chemistry about the company.
We could sense it.
I was at the Ector County courthouse, twenty miles from Mid-
land, checking land records, when Barbara called. She said Dr.
Wyvell wanted to see us, right away. Dorothy Wyvell was the
children's doctor. In a town the size of Midland, more than a doc-
tor, she was a warm, personal friend.
When we went into the doctor's office and sat down, all I
knew was that Robin had been in for a checkup because she'd been
acting listless. But I knew something was seriously wrong before
Dr. Wyvell said a word. She was normally a person of great com-
posure, a reassuring presence whenever one of the kids got sick.
But that day her eyes were misting, and she was having a hard
time putting her thoughts into words.
Some tests had been run to see what was the matter with
Robin, the doctor finally said. The results were back. Robin was a
very sick child. She had leukemia.
Barbara seemed to understand the full meaning of what the
doctor had said, but I didn't at first. When I asked what could be
done, the answer stunned me. Nothing, said Dr. Wyvell. The dis-
ease was rampant. Robin's case was advanced, and she had only a
short time to live. It might be a few weeks; it might be only days.
Her deeply felt counsel to us was that we take Robin home, keep
her as comfortable as possible, and let nature take its course.
Dr. Wyvell loved Robin. She just didn't want to see any of us
hurt any more than necessary.
After we came home from the doctor's office, I called my un-
cle, Dr. John Walker, in New York City. He was president of Me-
morial Hospital there and a former cancer specialist. When I told
him the news about Robin, he urged us to bring her to New York,
GEORGE
BUSH
A BIOGRAPHY
Nicholas King
DODD, MEAD & COMPANY
NEW YORK
copyright 1980
MIDLAND COUNTY PUBLIC LIBRARY
FITE AND TEXAS
50 George Bush
tation for pioneer drilling in difficult conditions and it
flights but returned only with tales of the destruction he
gained the respect of the industry.
had seen done to the houses and fishing communities
"You would have had a fight on your hands if you even
along the Louisiana coast.
suggested to one of the rig hands that there was a better
By this time, Zapata Offshore had been functioning for
drilling company than Zapata," says an engineer who had
a decade and its assets totaled $15.8 million. The offshore
worked for Zapata.
drilling business had come a long way since its birth and
In August 1958, Zapata Petroleum sold its remaining
had played a critical part in supplying oil to an industrial
interest in Zapata Offshore, which then became indepen-
society. This had been George Bush's real success. But he
dent, and its stock was listed on the American Stock Ex-
also knew the strain and risk of offshore oil operations
change in New York that September when Bush moved
and was thinking increasingly of public life: He had been
company headquarters to Houston. After five years, the
a Republican precinct worker in west Texas during the
firm had a fleet of four rigs, 195 employees, and 2,200
1956 Eisenhower campaign and had become Houston
stockholders.
County chairman. He was not to sever his ties with the
At the beginning of the 1960s drilling prospects in the
oil business until 1966, but in 1964 he decided to take a
gulf continued uncertainly, and Zapata concentrated its
leave of absence.
efforts in foreign waters, in the Caribbean and off South
He never forgot or undervalued what he had learned in
America. It attempted to diversify, somewhat unsuccess-
the oil fields. "The experience of dealing with people
fully, by acquiring properties like a plastics company and
helped me enormously [in later public life]," he reflects.
a gas pipeline company. But by 1963 offshore drilling
"I learned a great deal about leadership, and I learned a lot
presented a rosier picture and the future again looked
about the economic system. I had studied in college about
promising. An innovative outrigger-type floating rig
supply and demand, risk and reward, profit and loss, the
began operating for the company, and construction pro-
importance of labor and morale. But I didn't realize how
ceeded on the Maverick, a new LeTourneau jack-up which
all those things work together until I was making deci-
cost $5.7 million and inaugurated a new generation of
sions that involved life and death, and survival of the
such rigs. It was the biggest rig in the world and could drill
business. That training under fire, under economic adver-
in waters 250 feet deep. Zapata Offshore reported a record
sity, was a fantastic experience.
$1,189,000 net income for 1964, meaning that Bush was
"But I think I learned the most about people. The oil
getting richer.
field doesn't get credit for the fiber of its people. In those
The next year looked good too. The big rigs were earn-
days, most of the oil field workers didn't have much edu-
ing full time and there was talk of a merger with another
cation. They came from an entirely different background
offshore driller which would have doubled the size of the
than I. But the way they devoted their lives to their work,
fleet. However, there was a severe temporary setback
their fierce loyalty, competitiveness and spirit were an
when Hurricane Betsy swept along the Gulf Coast in
inspiration. It made a lasting impression on me."
September 1965 and swept the Maverick completely away
without a trace. Fortunately, there were no lives lost.
Bush personally went on a series of exhausting search
Looking Forward
OOKING FORWARD
EITHER AN A OR A Z
71
nd the company
where we should drill, the only question was how good the well
195 employees.
would be.
The Jamieson Field wells weren't the most prolific wells in the
nthly publication
world, by a long shot. But they were good wells, and as we contin-
ration world-
ued drilling, our income piled up. We now had enough to invest in
y issue
other productive West Texas oil properties, as well as turn our eyes
seaward, to what I felt was the future of domestic oil production,
offshore drilling.
split into separate
1 drilling-and-pro-
THREE-LEGGED MONSTER
ng-and-contracting
NEW DRILLING BARGE
e it to my younger
LAUNCHING TUESDAY
with my first love,
would mean days
Zapata Off-Shore Co.'s new three-legged drilling barge will be
Mexico but oceans
commissioned in Galveston Tuesday.
1 or the prospect of
Named the Scorpion, the barge will have a number of new wrin-
kles embodied in its mobile unit.
For one thing, its three legs are a radical departure from the usual
cable, done over a
multiples of two. Also, its equipment and arrangement are the newest
; the occasion, the
and latest ideas.
1 take that," and I'd
It was built for Zapata by R. G. LeTourneau, Inc., at Vicksburg,
rted as friends and
Miss., and towed to Galveston for outfitting. It weighs 9 million
e.
pounds and cost $3,000,000
S in the West Jamie-
The over-all dimensions of the platform are 180 by 150 feet. The
54 we had 71 wells
three legs or spuds. each 140 feet long, are driven into the Gulf floor
and the body pushed above the reach of waves by electric motors.
y ran out it totaled
At Galveston for the ceremonies will be George Bush, Zapata
e. People outside the
president, of Midland, and a number of visiting oilmen.
of luck, like shooting
From the Houston Chronicle, March 18. 1956
< than basic geology.
-sand conditions. We
ito the deal. It was a
No one doubted that offshore drilling represented the future
:hro Company, a ma-
of the business, but what LeTourneau proposed was a giant leap
out not a wildcatter's
into the future. He'd gone to major offshore companies like Kerr-
d engineers decided
McGee, and while they were interested in his revolutionary ideas,
72
LOOKING FORWARD
they were hesitant to back up their interest with money. Not only
was LeTourneau's equipment different, but the man himself was
unorthodox.
But we hadn't named our company Zapata in order to be gun-
shy about going into revolutionary, high-risk ventures. We lis-
tened to R. G. LeTourneau, looked at what he had to offer, and
decided to stake our offshore future on his three-legged monster.
That brought us a lot of publicity and some pats on the back
for making a bold business move. The only problem was, the darn
thing didn't work-at least, not at first. Put out to sea on its first
assignment, the Scorpion's jacking system failed and the Gulf
saltwater got into its gear boxes.
For LeTourneau, it was back to the drawing board. For Zapata,
a major decision had to be made-whether to go ahead with an-
other LeTourneau-designed three-legged rig, the Vinegarroon, to the
tune of $3.5 million.
We took the gamble. Like Eugene Meyer betting on Fred
Chambers and me years before, Zapata's management based its
decision on our hunch about LeTourneau the man. And in time,
LeTourneau's three-legged monsters-first the Scorpion, then the
Vinegarroon, then the $6 million Maperick-became the state of the
art in offshore drilling rigs.
LeTourneau was gruff, eccentric, a kind of George Patton of
engineering. He was the man of action with a mystic touch, a
dynamo, a creative genius. He'd come to us with a proposition:
he'd build the Scorpion at his own expense. We'd advance him
$400,000-refundable if the completed rig didn't work; if it did,
he'd get an added $550,000 and 38,000 shares of Zapata Off-Shore
common stock. Our feeling was that anybody who had that much
confidence in himself was worth the gamble.
Despite the disappointment at Galveston, the gamble paid off.
Le Tourneau didn't go back to the drawing board, he came over the
deck itself. We watched incredulously as he looked at his monster's
legs, then at the rack-and-pinion gears. Then right there on the
steel deck, he pulled out some chalk and sketched the changes that
had to be made.
NEWS
Independent
Insurance
Agent.
Independent Insurance Agents of America INCORPORATED
100 CHURCH STREET NEW YORK. N.Y. 10007
600 PENNSYLVANIA AVE.. S.E. STE. 200 WASHINGTON, DC 20003
FOR FURTHER INFORMATION CONTACT:
Rebecca J. Newman
R-4-89
(703) 922-2707
SUBJECT: ПАА PROPOSES SWEEPING CHANGES
IN INSURANCE INDUSTRY
RELEASE: IMMEDIATE
WASHINGTON D.C., January 15 - In an unprecedented move within the insurance
industry, the Independent Insurance Agents of America (IIAA) have adopted a policy statement
that proposes sweeping changes in the fundamental way in which the insurance industry does
business. Changes in policies, policyholder services, communications and rating organizations
are being recommended along with suggestions to re-examine the current auto insurance
classification system and to intensify efforts to reduce underlying auto insurance costs.
R. C. Riley, CPCU, the IIAA executive committee member who chaired the
subcommittee that drafted the policy statement, introduced the report saying that "over the last
several years the insurance industry has suffered an erosion in the public's confidence. We
believe this perception results from the failure of our industry, in many instances, to provide the
public with reasonably stable markets, affordable prices, responsive service, and regular
communications explaining the reasons for price increases, cancellations, nonrenewal, and other
major policy changes," he said.
(more)
2
R-4-89
"We also believe that the industry will not improve its standing with the public
unless individual insurance companies and agents find ways to reduce these problems and
change day-to-day business practices that are currently creating stress with the public," Mr.
Riley stated.
Developed during the past year, the IIAA statement acknowledges the growing trend
in Congress and in other bodies to inaccurately blame the McCarran Ferguson Act for perceived
problems within the industry, according to IIAA President Lawrence E. Hite, AAI. "We felt that
as agents and consumer advocates, our association should provide a framework for debating
solutions to real problems, as well as to deal with the storms brewing on the state level. The
problems facing our agents, such as California's Proposition 103, can begin to be resolved once
these principles are adopted," Mr. Hite said.
With regard to the territorial rating systems, the report states that the industry should
work with insurance regulators, legislators, and consumers to re-examine current automobile
insurance classification and territorial rating systems. "Existing systems clearly have produced
extreme differences in some areas with the result that rates appear to have become unfair to
certain classes of insureds," the report says.
While the policy statement strengthens IIAA's commitment to the McCarran
Ferguson Act and state regulation, it also calls for rating organizations not to produce final
advisory rates, leaving it up to the individual insurance company to file those final rates with the
insurance department. The statement also suggests that policyholders, regulators and insurance
agents/brokers be added as voting members to the form development committees and the boards
of directors of rating organizations. The fundamental data and form service that rating
organizations provide are deemed "extremely important" by the authors of the report and should,
therefore, remain intact.
(more)
- 3 -
R-4-89
Since one of the most visible insurance consumer issues today is auto insurance
rates, Mr. Riley said that it is important to educate consumers about the three economic issues
that drive auto rate increases -- theft, replacement parts, medical costs. "But it is most important
that we also work towards stronger well-written no fault laws, such as in New York and Florida,
which go a long way to control cost," he added.
Finally, the report asserts that while the insurance industry has actively sponsored
various loss control programs like mandatory seat belt laws and auto theft prevention, the
industry needs to increase overall loss control efforts and communicate these efforts to the
public. The underlying message appears to be that the insurance industry is as concerned as the
public about escalating auto insurance premiums.
Some of the other business changes IIAA is recommending include a broader
pursuit of market assistance programs and multiple-year policies for better stability in rates and
availability
"IIAA pledges to use this statement as a starting point for discussions with
legislators, regulators, consumers and business groups. We hope the industry leaders will join
us to make these changes a reality," Mr. Hite concluded.
(Note: Attached is full text of IIAA's policy statement)
###
Independent Insurance Agents of America
Independent
Insurance
INCORPORATED
Agent
CAPITOL HILL OFFICE
SUITE 200
600 PENNSYLVANIA AVE., S.
WASHINGTON, D.C. 20003
202/544-5833
March 8, 1989
FAX 202/544-8712
Mr. Mark Davis
The White House
Old Executive Office Building
Room 122
Washington, D.C. 20500
Dear Mark:
Enclosed is a copy of Where We Stand, which contains several of
our legislative concerns and some background on the Independent
Insurance Agents of America (IIAA). I have also enclosed the original
letter of invitation to the President for your information.
As we discussed, our Annual National Legislative Conference is
held each year in Washington, D.C. in order for our members to
personally lobby on Capitol Hill and to hear invited senators and
congresssmen speak to our agents on salient issues of the day. This
year, Senator Lloyd Bentsen will be addressing our group on Tuesday,
March 14, prior to the President's speech, and Senator
Trent Lott will address IIAA on Wednesday morning. We expect
approximately 750 agents from all 50 states, with a sizeable
contingent from Texas. These agents are the most politically astute
and active members of our association with many of them serving in
elected office (ie. Senator Wendell Ford and Congressmen John Rowland,
Dan Burton, Jim Quillen and Norm Mineta are members of IIAA), while
others serve as campaign finance chairmen, county councilmen, etc.
IIAA has the 12th largest business political action committee
(InsurPac) in the nation that supports candidates attuned to our
interests and small business concerns in general.
As you know, IIAA's Board of Directors adopted a policy statement
calling for fundamental, voluntary reforms within the insurance
industry. These reforms, which have received strong bipartisan
support from Capitol Hill, would enhance the availability and
affordability of insurance. Enclosed is a copy of our press release
on- the policy statement. The policy statement is in sync with the
President's position that voluntary reforms are preferential to
federally mandated changes and regulation, and his reference to our
statement would be beneficial for the Administration both politically
and substantively. IIAA also supports the McCarran-Ferguson Act and
the state regulation of the insurance industry.
Please feel free to call me if you have any additional questions
or comments.
With kind regards,
Bob
Robert A. Rusbuldt
Director of Federal Affairs
RAR:dh
Enclosures
THE
STATE
OF
SMALL
BUSINESS:
A REPORT
OF THE
PRESIDENT
TRANSMITTED TO THE CONGRESS
1988
ment is identical to the creation of an enterprise. Start-
and acquisitions that added existing establishments to
ing a new firm is often more difficult than expanding
larger businesses.
an existing enterprise by adding establishments-a pos-
Manufacturing showed a large net employment de-
sible explanation for the difference in establishment
crease for the period because of a loss of 1.7 million
creation rates between large and small enterprises.
jobs in large businesses with more than 500 employ-
ees. This loss was partially offset by a gain of 574,000
Employment
During the six years ending in 1986, 10.5 million net
employees in small manufacturing establishments with
Gains and
new jobs were created, according to establishment
fewer than 20 employees. Large businesses lost em-
Losses,
data of the Small Business Data Base (Table 12).2³ Es-
ployment in mining and construction as well. Medium-
1980-1986
tablishment data can provide clues to the changing
sized businesses with 100-499 employees also lost
structure of the economy-changes in the shape of an
jobs in mining, construction, and manufacturing. Firms
industry, or changes occurring in a specific region (Ap-
with fewer than 20 employees added employment in
pendix Table 22). Employment data can illuminate the
every major industry division.
job generation effects of the opening and closing of es-
Many European observers speak of the U.S. job
tablishments.
growth as the "American miracle." To the extent that
Of the 10.5 million new jobs created between 1980
a miracle occurs, it can best be described as a small
and 1986, 63.5 percent, or 6.6 million, came from
business phenomenon. To fully understand how dy-
small businesses with fewer than 500 employees. More
namic the American economy is, however, one should
than 4 million jobs, or 38.7 percent of the total net
observe the gross changes, which produced a net
gain in employment, came from firms with fewer than
result of 10.5 million new jobs between 1980 and
20 employees. Thus, net job creation in the economy
1986. The net job change is equal to jobs added to the
can be characterized as an outcome of small business
economy through the births of new establishments and
activity-in particular, activity by small businesses with
the expansions of existing establishments, minus the
fewer than 20 employees.
An examination of the distribution by industry of job
jobs lost through the closings or contraction of existing
establishments. These gross flows reflect the American
growth during the business cycle from 1980 to 1986
shows that 53.5 percent, or 5.6 million jobs came
economy's adaptation to changing conditions.
from the narrowly defined service industries. Small
From 1980 to 1986, 31.8 million new jobs were
service businesses with fewer than 500 employees cre-
created through the startup of new establishments
ated more than half of this total gain in employment.
(Table 13 and Appendix Table A.25). An additional
The next largest employment gains were in retail
12.7 million jobs were added because of the expan-
trade, which added 2.4 million jobs. Most of these
sion of existing establishments. These two gains in the
jobs came from large businesses, reflecting a continu-
number of jobs were offset by the loss of 25.2 million
ing trend throughout the period of rapid expansion by
jobs in the closing of establishments, and of 8.9 million
large, retail businesses. Part of these employment gains
jobs in the contraction of existing establishments. The
reflected the addition of new establishments through
net result of these gross flows is a net gain of 10.5 mil-
existing retail businesses, and part came from mergers
lion jobs in the American economy. To put these large
numbers in perspective, it might be noted that the
number of jobs associated with births, deaths, expan-
23 This estimate from the Small Business Data Base, which includes
sions, and contractions over a six-year period is almost
both full- and part-time employment, may be compared with growth
equal to the number of jobs existing in the economy.²⁴
data from two other sources. The Bureau of Labor Statistics shows
an increase of 9.32 million jobs from December 1980 to December
24 The number of jobs cited in these gross flows is an understate-
1986, based on establishment surveys. The Bureau of Labor Statistics
ment. For those establishments which show no change in size over
also shows an increase of 13.35 million jobs for the six-year period
the six-year period, it is probable that some employees were hired
based on a household survey which includes self-employed individ-
and some employees left the establishment. However, since there
uals as well as wage-and-salary workers (for 1984-1986 data, see
was no change in the net number of jobs at that establishment, these
Appendix Tables A.23 and A.24).
job changes were not noted in the Small Business Data Base.
32
33
Civilian Employment Trends -continued
[1] BLS series adjusted to U.S. concepts (see note) except that 1970 is estimated based on OECD data.
(2) Countries with real GDP per capita in 1985 equal to 60 percent or aore of U.S. level. Comprises OECD Europe
except for countries listed in [3] below.
[3] Countries with real GDP per capita in 1985 below 60 percent of the U.S. level. Comprises Greece, Ireland,
Portugal, Spain, and Turkey.
[4] European Community countries: Belgius. Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, the
Wetherlands, Portugal, Spain, and the United Kingdom.
[5] France, Germany, Italy, and the United Kingdom.
Note: Data for the following countries have been adjusted to U.S. concepts by the
Bureau of Labor Statistics - United States, Canada, Japan, France, Germany, Italy.
the Netherlands, Sweden, and the United Kingdom.
Data for all other countries are from the Organization for Economic Cooperation
and Development (OECD), Labour force Statistics, 1966-86 and its quarterly supplements.
and OECD estimates for 1987 and 1988 contained in Economic Outlook, December 1988. OECD
estimates were in terms of percent changes which were applied by BLS to 1986 data.
Data are preliminary for the United Kingdom from 1982 onward. Data for
1986 are preliminary for Germany and the Netherlands. Data for 1987 are preliminary for
all countries except the United States, Canada, Japan, France, Italy, Portugal, and Spain.
Data for 1988 are preliminary for all countries except the United States and Canada.
Prepared by:
U.S. Department of Labor
Bureau of Labor Statistics
Office of Productivity & Technology
January 1989.
PAGE.003
FROM DEPT OF LABOR
28:11 58 01 RAR
-593
CIVILIAN EMPLOYMENT TRENDS IN NORTH AMERICA, JAPAN, AND EUROPE FOR SELECTED YEARS, 1970-1988
CIVILIAN EMPLOYMENT (THOUSANDS)
COUNTRY
1970
1973
1975
1980
1981
1982
1983
1984
1985
1986
1987
1988
+
15665
UNITED STATES
78678
85064
85845
99303
100397
99526
100834
105005
107150
109597
112440
114968
CANADA
7919
8761
9284
10908
11006
10644
10734
11000
11311
11634
11955
12349
JAPAN
50140
51910
51530+470
54600
55060
55620
56550
56870
57260
57740
58320
59300
DECD EUROPE:
A JAPAN + A EUROPE
= 9428
AU.S.
(4700) (4 + (4728)
(+15665)
AUSTRIA
3051
3150
3175 -2 3263
3267
3229
3203
3206
3213
3226
3245
3261
BELGIUM
3658
3738
3737-623743
3664
3615
3577
3579
3607
3645
3545
3681
BENNARK
2315
2385
2332+199 2460
2369
2374
2389
2457
2522
2630
2659
2859
FINLAND
2115
2154
2211+112 2318
2343
2367
2380
2403
2427
2421
2414
2430
FRANCE
20270
20848
20850
21200
21240
21170
20980
20520
20950
26990
21090
GERMANY
26100
26350
25240
25750
25560
25140
24750
24800
24950
25220
25400
25538
ERRECE
3134
3191
3198+2593356
3523
3491
3540
3553
3588
3601
3597
3615
ICELAND
81
90
+14 104
110
112
113
114
116
116
117
118
IRELAND
1045
1057
1061 -69 1141
1131
1133
1110
1090
1959
1058
1057
1072
ITALY
19080
18870
19400+65020200
20280
20250
20320
20390
20490
20610
28590
20850
LUIENBOURG
140
151
157
+16
157
158
158
157
158
160
164
168
173
INTHERLANDS[1]
4569
4560
4580 +3354880
5010
4980
4890
4930
5110
5200
5262
5315
SORWAY
1497
1654
1707+202 1908
1935
1943
1945
1970
2014
2086
2126
2110
PORTUGAL
3345
3286
3724+3893940
3918
3928
4136
4063
4030
4045
4156
4229
SPAIN
12220
12608
12442 +3301495
11156
11043
10998
10674
10567
19815
11370
11734
EVEDEN
3850
3873
4058+233 4226
4219
4213
4213
4249
4293
4325
4396
4459
HWITZERLAND
3142
3277
3116+32
3211
3190
3149
3142
3171
3219
3261
3302
TURKEY
+1801
12583
13358
13798
14531
14668
14802
14912
15111
15290
15632
15992
16152
UNITED KINGDOM
24330
24610
24560+8424670
23800
23710
23600
24000
24310
24450
24910
25410
HELECTED GROUPS:
NORTH AMERICA
86597
93825
95130
110011
111403
110170
111568
116005
118461
121231
124395
127315
DECD EUROPE
146525
149212
149436
152742
151528
150918
150557
150869
151847
153424
155365
157190
HIGH INCOME (2)
114198
115712
115215
118279
117126
116521
115861
116378
117313
118263
119183
120388
LOW INCOME [3]
32327
33500
34221
34463
34402
34397
34696
34491
34534
35161
35182
36802
EUROPEAN COMMUNITY[4]
120206
121646
121281
123222
121775
121062
120637
120674
121323
122398
123814
125358
MAJOR FOUR [$]
89780
90570
90050
91950
90840
90340
89840
90170
90580
91230
91890
92830
PAGE.002
FROM DEPT OF LABOR
11:84 68. 01 RAR
15-04 010
PRESS RELEASE
Degular
THE VICE PRESIDENT
OFFICE OF THE PRESS SECRETARY
FOR IMMEDIATE RELEASE
CONTACT: 202/456-6772
Wednesday, March 23, 1988
SUMMARY OF PRESIDENTIAL TASK FORCE MEETING
WASHINGTON, D. C.
MARCH 22, 1988
Vice President George Bush, Chairman of the Presidential Task
Force on Regulatory Relief, yesterday instructed heads of concerned
federal agencies to redouble their efforts to conclude their
unfinished business this year. The Vice President also received a
report on the Task Force's ongoing oversight of defense procurement
reform pursuant to the recommendations of the Packard Commission.
Among items discussed for renewed attention were the deregu-
lation of. natural gas; revisions of Davis-Bacon requirements to lower
costs in the defense budget and other federally financed construction
programs; relaxation of the CAFE standards; and deregulation
initiatives of federal agencies that are behind scheduled commitments.
Deregulation of Natural Gas: "This has been an
Administration priority from day one," the Vice
President said. Adding that the Administration
had achieved partial deregulation with repeal of
the Fuel Use Act he said that it was time to
complete the task especially with oil prices
at relatively low levels. Beryl Sprinkel, Chairman
of the Council of Economic Advisers, added that
the United States had ample supply of natural
gas which, if fully deregulated, could displace
growing oil imports.
Davis-Bacon Act: The Davis-Bacon Act, also discussed
at the meeting, covers any federal or federally
assisted contract in excess of $2,000, a limit
that has not changed since 1935. The Adminis-
tration's proposal would raise the threshold to
$1 million for defense contracts and $100,000 for
other agencies. The Administration has also
proposed similar changes in the Service Contract Act.
These two legislative proposals would save almost
$500 million annually.
Florida Demonstration Project: The Vice President
also approved the expansion of a five agency
experiment, called the Florida Demonstration Project,
that is reducing the paperwork burden imposed on
university researchers by Federal, State and
university rules when Federal funds are involved.
-more-
-2-
Because of its success so far, the Project will
expand, beginning October 1, 1988, to include
research contracts as well as grants, and to
include universities and research facilities
outside of Florida. The Project will enable
researchers to spend more time on research and
less on filling out forms.
With respect to the Task Force's ongoing oversight of defense
procurement reform, the Vice President received a report from the
Office of Federal Procurement Policy on the successful implementation
of a process for OMB review of procurement regulations patterned after
the regulatory review process established by the Task Force pursuant
to Executive Order 12291, signed by the President, February 1981.
With respect to the procurement paperwork reduction program,
almost 200 procurement and paperwork regulations have been reviewed in
the first year of the program with changes made to almost half of
them. The program implements several of the reforms recommended by
the Packard Commission to simplify and deregulate the Federal
procurement system which it found was seriously overregulated and
inefficient. As part of that program, Federal agencies were
instructed to reduce regulations that duplicate or complicate matters
contained in government-wide regulations.
The Task Force also announced the Fiscal Year 1988 goals to
examine meeting Government needs for commercial services by
contracting with private businesses if the costs are lower than
meeting those needs with Government employees. As a result of an
Executive Order issued by the President last year, almost $250
million, accounting for almost 25,000 positions, would be saved.
This reflects a savings of 30% for each position studied. The Task
Force will continue to monitor agency progress in meeting the goals
set by the President.
######
Building a Better america
stimulate greater saving, investment, and entrepreneurship, the Administration proposes a
lower capital gains tax rate. For gains on qualified assets held long term, the maximum tax
rate will be 15 percent for high income taxpayers. Low income taxpayers will be exempt from
tax on such gains. Gains on short term holdings will not receive favorable tax treatment.
"I think we should cut the capital gains rate to reestablish that differential and create
jobs."
George Bush
PRINCIPLES
The President is committed to low marginal tax rates that stimulate work, saving, and
investment.
The President believes that lower capital gains rates will stimulate investment and
economic growth and create additional jobs for Americans.
The differentially lower rate for gains on long held assets will help focus investment
decisions on long run competitiveness, and profitability.
Taxpayers are responsive to lower tax rates and will significantly increase their capital
gains realizations, particularly in the short-run. Revenues from increased economic
growth can be expected in the long-run.
Restoring the capital gains differential will increase entrepreneurial activity and em-
ployment, paving the way for discoveries of new products, processes, and whole new
industries.
Restoring the capital gains differential will roughly correct for the taxation of purely
inflationary gains. Many taxpayers find that they pay capital gains taxes on increases
in the value of assets which do not even keep pace with inflation.
Restoring the capital gains differential will reduce the tax bias toward debt finance.
Most of America's major trading partners tax long-term capital gains lightly, if at all.
Reducing our capital gains rate will promote U.S. international competitiveness.
The capitals gains proposal will gain revenue during the budget period as taxpayers
(who otherwise would be locked in to holding their assets, paying no tax) realize capital
gains sufficient to offset the lower tax rate. Historical experience indicates that when
the capital gains rate has been cut, increased revenues are likely. The last time the capi-
tal gains differential was enhanced (the 1978 Steiger Amendment), capital gains revenue
increased.
POLICIES
The President proposes restoring a capital gains tax differential on gains from qualified
assets sold by individual taxpayers. A 45 percent exclusion will apply to gains on qualified
assets; that is, 45 percent of the gain would be excluded from tax, meaning a lower effective
capital gains tax rate. A 15 percent maximum tax rate will apply to all qualified gains to prevent
high marginal tax rates from interactions with other tax rules. The exclusion and maximum
tax rate will apply to both the regular and alternative minimum tax. A 100 percent exclusion
will apply to gains on qualified assets of taxpayers who have adjusted gross income below
$20,000 and who are not subject to the alternative minimum tax.
32
The current law definition of a capital asset will be retained. However, gain from the sale
or exchange of depreciable property used in a trade or business and certain special types of
property in section 1231 of the tax law will not be treated as capital gain eligible for the lower
tax rate. "Collectibles" as defined by the eligibility rules for Individual Retirement Accounts
will not be eligible for lower capital gains tax rates.
Qualified capital assets will be required to have been held more than 12 months to be
eligible for the lower capital gains rate for assets sold in 1989 through 1992; 24 months for
assets sold in 1993 and 1994; and 36 months for assets sold in 1995 or later.
The proposal to lower capital gains rates will be effective for qualified capital assets sold
after June 30, 1989.
FUNDING SUMMARY
(Revenue change in billions of dollars)
1989
1990
1991
1992
1993
Capital gains tax differential
+0.7
+4.8
+4.9
+3.5
+2.2
b. Strengthening Federal Science and Technology Policy
OVERVIEW
The President's Science Advisor, who is also the Director of the Office of Science and Tech-
nology Policy, is an important source of independent, technical counsel for the President, and
plays a key role in the formulation of the national science and technology agenda.
The Administration believes that the private sector should also have an important role in
providing science and technology advice. Science and technology form the foundation of economic
power. It is the combination of dedicated, skilled people and technological advancement that
can improve our standard of living and our competitive position in the global marketplace.
"I will upgrade the President's Science Advisor to Assistant to the President and make
him an active member of the Economic Policy Council and our national security planning
processes. And I will create a President's Council of Science and Technology Advisors,
composed of leading scientists, engineers and distinguished executives from the private
sector."
George Bush
PRINCIPLES
Science and technology are increasingly critical to the Nation's national security and
economic health.
Many government policies and programs have an important scientific and technological
component. Informed judgements on these issues are crucial to the President, and thus,
33
American Council for Capital Formation
Center for Policy Research
June 1987
SPECIAL REPORT
CAPITAL GAINS TAXES IN 1987: U.S. VS. THE REST OF THE WORLD
A new Arthur Andersen & Co. study comparing tax rates on portfolio stock investment among eleven major industrialized
countries and six Pacific Basin countries reveals that in 1987, U.S. capital gains taxes are higher than those of almost all
surveyed countries.
The comparison, which is undertaken periodically by Arthur Andersen, shows that among eleven industrialized
countries including the U.S., only Australia and the United Kingdom have higher maximum long-term capital gains tax
rates on portfolio stock investments. Japan, Germany, and three other industrialized nations exempt all such long-term
capital gains from taxation. Among the six Pacific Basin countries surveyed, five, including South Korea and Taiwan,
exempt such long-term captial gains from taxation. Of those seventeen surveyed countries, all but three have lower
maximum short-term capital gains taxes on portfolio stock investments than the United States.
In the past two years changes elsewere in the world have been toward lower capital gains taxes; in the U.S. the Tax
Reform Act of 1986 resulted in the largest capital gains tax rate increase probably since the advent of the federal income
tax in 1913. (Source: Prepared by Arthur Andersen & Co. for the Securities Industries Association.)
Comparison of Individual Taxation of Capital Gains on Portfolio Stock Investments in 1987
Maximum
Maximum
Maximum
Short-Term
Long-Term
Period to Qualify
Annual
COUNTRIES
Capital Gain
Capital Gain
for Long Term
Net Worth
INDUSTRIALIZED
Tax Rate*
Tax Rate*
Gain Treatment
Tax Rate
United States (A)
38.5%
28%
> Six Months
None
Australia (B)
50.25%
50.25%
One Year
None
Belgium
Exempt
Exempt
None
None
Canada (C)
17.51%
17.51%
None
None
France (D)
16%
16%
None
None
Germany (E)
56%
Exempt
Six Months
.5%
Italy
Exempt
Exempt
None
None
Japan
Exempt
Exempt
None
None
Netherlands
Exempt
Exempt
None
.8%
Sweden
45%
18%
Two Years
.3%
United Kingdom (F)
30%
30%
None
None
PACIFIC BASIN
Hong Kong
Exempt
Exempt
None
None
Indonesia
35%
35%
None
None
Malaysia
Exempt
Exempt
None
None
Singapore
Exempt
Exempt
None
None
South Korea
Exempt
Exempt
None
None
Taiwan
Exempt
Exempt
None
None
. State, provincial and local tax rates not included.
(A) As of January 1, 1988, the nominal tax rate for long- and short-term capital gains rate is to 28 percent. The marginal rate, however rises to 33 percent
for joint returns between $71,900 and $149,250 and for single returns between $43,150 and $89,560.
(B) The above maximum long- and short-term rates are comprised of 1.25% Medicare Levy and 49% Income Tax. Prior to July 1, 1987, the Medicare
Levy will remain at 1.145% and the Income Tax will remain at 57.08% (aggregating 58.225%). There is no distinction in rate, however, the one-year
holding period is for special exemption and indexing.
(C) Canadian residents are allowed an annual capital gains exemption of Canadian 30,000 ($22,998') subject to a cumulative exemption of up to
Canadian 500,000 ($383,300¹) in 1990.
(D) Gains from proceeds of up to FF 272,000 ($45,288') are exempt from taxation in a given taxable year.
(E) The first DM 1,000 ($554') of short-term capital gains is exempt from tax.
(F) The first £6,300 ($10,096') of annual gain is exempt.
1 Based on exchange rates as of March 31, 1987.
The ACCF Center for Policy Research is an education and research affiliate of the American Council for Capital Formation. Its mandate is to
promote an understanding by the public of the importance of capital formation to the economy. For additional information contact: ACCF
Center for Policy Research, 1850 K Street, N.W., Suite 400, Washington D.C., 20006, (202)293-5811.
WORKING PAPER SERIES
THE JAPANESE TAX REFORM AND THE EFFECTIVE
RATE OF TAX ON JAPANESE CORPORATE INVESTMENTS
John B. Shoven
Working Paper No. 2791
NATIONAL BUREAU OF ECONOMIC RESEARCH, INC.
NR
100,000 yen ($800) from a company (excluding mutual funds) then he may
shed in the 1987 reform except
elect separate taxation at the marginal rate of 20 percent.
stance (the elderly, single
In addition to the advantages of separate taxation, dividends are
has been replaced with a flat
lightly taxed at the individual level due to another feature of the
urce) of 20 percent, with 15
individual tax law. For taxpayers with ordinary taxable income of less
ent and 5 percent for local
than 10 million yen ($81,300), a tax credit amounting to ten percent of
dividends received is allowed. For those with higher taxable incomes, the
terest income is separate
credit is reduced, although it always exceeds five percent. The basic ten
ived on savings deposits and
percent credit means that the maximum marginal rate of national level
es) was subject to a separate 20
taxation of dividends (which occurs under separate taxation) is effectively
could be excluded from taxable
25 percent (10 percent for small dividends).
S of interest income (bond
Capital gains on securities are not taxed in Japan, although the
te it with taxable income or pay
current proposal would change this. It would give taxpayers the option of
erest income was subject to the
paying a tax equal to one percent of the value of the stock transaction or
own in the rate schedule. This
to pay a separate tax on the actual gain at the rate of twenty percent.
able if the present reform
The one percent of sales value option implies that capital gains on
securities will still be very lightly taxed in Japan relative to their
parate taxation of dividend
current treatment in the U.S. (fully taxable at ordinary rates upon
he dividend recipient from the
realization). Capital gains on land and buildings are taxed separately in
r dividends the marginal rate for
Japan with the terms depending on the holding period.
nt as long as the recipient owns
Before the 1987 tax reform, corporate capital return was extremely
equity and as long as the amount
lightly taxed at the personal level in Japan. Most of interest income
n is less than 500,000 yen
completely escaped taxation as did all of capital gains on securities.
d these limits through
Dividends had the option of separate taxation and thus escaped the
on is unavailable on the
marginal rates that went up as high as 70 percent. If the Ministry of
or small dividends, there is even
Finance proposal is adopted, this will have changed substantially. Almost
ives a dividend of less than
11
THE
STATE
OF
SMALL
BUSINESS:
A REPORT
OF THE
PRESIDENT
TRANSMITTED TO THE CONGRESS
1989
Table Establishment Employment by Enterprise Size and Major
Industry, 1986
Employment Size of Enterprise
Employment Size of Enterprise
Industry
Total
1-4
5-9
10-19
20-49
50-99
<100
100-499
<500
500-999
1,000-4,999
5,000-9,999
10,000+
500
Total United States
91,028,636
4,910,183
5,669,513
6,081,331
8,742,206
6,522,955
31,926,188
13,374,188
45,300,376
4,781,742
11,122,066
5,154,926
24,669,526
45,728,260
Employment
35.07
14.69
49.76
5.25
12.22
5.66
27.10
50.24
Percent
100.00
5.39
6.23
6.68
9.60
717
Agriculture
Employment
944,517
157,638
152,824
115,290
124,568
70,615
620,935
125,344
746,279
35,767
62,619
8,906
90,846
198,238
100.00
16.69
16.18
12.21
13.19
7.48
65.74
13.27
79.01
3.79
6.63
0.94
9.63
20.99
Percent
Mining
115,644
102,793
445,091
712,592
Employment
1,136,989
42,309
48,659
63,644
88,423
61,270
304,305
120,092
424,397
49,064
Percent
100.00
3.72
4.28
5.39
26.76
10.56
37.33
4.32
10.17
9.04
39.15
62.67
5.60
7.78
Construction
Employment
5,011,112
746,150
656,046
699,046
887,465
530,372
3,519,079
763,243
4,282,322
159,058
254,681
78,864
236,187
728;790
14.54
10.58
270.23
15.23
85.46
3.17
5.08
11.57
4.71
Percent
100.00
14.89
13.09
13.95
17.71
Manufacturing
819,425
1,586,408
1,440,357
4,688,872
3,371,888
8,060,760
1,283,426
3,076,207
1,318,246
9,073,680
14,751,559
Employment
22,812,319
295,886
546,796
Percent
1.30
2.40
3.59
20.55
14.78
35.34
5.63
13.48
5.78
39.78
64.66
100.00
6.95
6.31
Transportation,Communications
and Public Utilities
Employment
6,071,614
146,225
219,093
286,550
438,168
313,657
1,403,693
633,336
2,037,029
231,599
704,089
381,122
2,717,775
4,034,585
7.22
5.17
23.12
10.43
33.44
3.81
11.60
6.28
44.76
66.45
Percent
100.00
2.41
3.61
4.72
Wholesal Trade
3,539,419
872,482
4,411,901
216,499
475,004
185,085
973,255
1,849,843
Employment
6,261,744
503,353
732,528
776,443
953,656
573,439
Percent
100.00
8.04
11.70
12.40
15.23
9.16
56.52
13.93
70.46
3.46
7.59
2.96
15:54
29.54
Retail Trade
17,142,789
1,425,547
1,685,250
1,545,075
2,140,384
1,418,910
8,215,166
1,904,256
10,119,422
617,528
1,264,397
675,818
4,465,624
7,023,367
Employment
A
7.38
3.94
26:05
40.97
Percent
100.00
8.32
9.83
9.01
12.49
8.28
47.92
11.11
59.03
3.60
Finance,Insurance,and/RealEstate
Employment
7,098,778
392,342
443,187
2,169,547
988,842
3,158,389
404,308
1,103,536
698,771
1,733,774
3,940,389
351,648
394,484
587,886
100.00
5.53
4.95
5.56
8.28
30.56
13.93
44.49
5:70
15:55
9.84
24.42
55.51
6.24
Percent
Services
Employment
24,548,774
1,200,733
1,276,669
1,381,374
1,935,248
1,671,148
7,465,172
4,594,705
12,059,877
1,784,493
4,0654,889
1,705,321
4,933,194
12,488,897
30.41
18.72
49.13
7.27
16.56
6.95
20.10
50.87
Percent
100.00
4.89
5.20
5.63
7.88
6:81
Note: Data exclude government employment. Detail may not add to totals because of rounding. The Small Business
Data Base covers approximately 93. percent of full-time business activity; generally firms with at least one paid
employee, with a Dun and Bradstreet credit rating, or using insurance markets. The sectional USEEM file Is the
SBDB file of choice for static data, including enterprise, establishment, and employment control totals and
distributions by firm size. For a full discussion of the USEEM file, see "The Linked 1976-1986 USEEM User's Guide"
(Washington, D.C.: U.S. Small Business Administration, Office of Advocacy, July 1988)
Source: U.S. Small Business Administration, Office of Advocacy, Small Business Data Base, USEEM file, version 8,
1988
at
81
80
National Data Book and
Guide to Sources
STATISTICAL
ABSTRACT
OF THE
UNITED
STATES
1988
108th Edition
U.S. Department
of Commerce
BUREAU OF
THE CENSUS
ORCE PARTICIPATION RATES, BY SEX, AND FEMALES AS PERCENT OF TOTAL
[1977 Data relate to all employed persons in the United States and Canada; all employees in other countries. Minus sign
(-) indicates decrease. For explanation of average annual percent change, see Guide to Tabular Presentation]
LABOR FORCE-SELECTED COUNTRIES: 1970 TO 1986
Unit-
Unit-
West
LABOR FORCE PARTICIPATION RATES I
FEMALES AS PERCENT OF
Bel-
Cana-
Den-
Neth-
Swe-
ed
INDEX AND YEAR
ed
France
da
mark
Italy
Japan
Ger-
TOTAL LABOR FORCE
gium
erlands
den
King-
many
1
States
dom
Female
Male
1980
1984
1985
1986
1970
1980
1984
1985
1986
1970
1980
1984
1985
1986
Output per hour:
1970
80.8
59.9
75.6
65.5
69.6
72.7
64.8
64.3
80.7
79.7
71.2
87.8
87.0
87.1
87.2
36.7
41.9
43.1
43.5
43.8
1975
92.9
85.9
88.6
94.6
88.5
91.1
87.7
86.2
100.2
95.2
90.1
61.3
64.3
65.5
66.5
90.1
57.8
62.0
63.2
64.3
87.1
87.5
85.9
86.2
86.5
32.2
40.0
42.2
42.6
42.9
1980
101.4
119.7
98.2
112.3
112.0
116.9
122.7
113.9
112.7
101.7
108.6
153.3
112.7
117.2
138.3
136.8
163.7
145.6
134.5
134.2
128.9
52.5
56.1
56.4
57.2
86.9
83.4
78.6
78.7
78.2
36.6
40.1
42.0
42.2
42.7
1985
121.7
40.3
40.6
42.0
82.0
81.2
78.0
77.7
77.7
27.1
33.4
34.8
35.1
35.8
1986
126.0
(NA)
112.1
116.6
140.9
138.4
168.2
(NA)
136.4
138.2
131.4
39.2
54.9
57.2
57.2
57.4
89.4
89.0
88.4
87.8
87.5
39.3
38.7
39.6
39.7
39.8
Average annual percent change:
78.8
79.7
80.5
90.6
89.8
87.2
87.5
87.5
39.5
45.2
46.9
47.1
47.3
1970-1980
2.3
7.2
2.6
5.5
4.9
4.9
6.6
5.9
3.4
2.5
4.3
75.7
61.7
62.2
62.9
63.5
96.1
91.5
87.8
87.8
87.3
36.2
40.3
41.4
41.7
42.0
1980-1985
3.7
5.1
2.8
.8
4.3
3.2
5.9
5.0
3.6
5.7
3.5
38.5
38.7
39.0
3.5
(NA)
-.5
-.5
1.9
1.2
2.8
(NA)
1.4
2.9
1.9
50.0
49.2
50.4
51.4
92.5
83.6
79.9
79.9
79.2
35.9
37.8
1985-1986
percent of population, 15-64 years old.
Compensation per hour, national
currency basis: 2
1970
57.4
34.9
47.9
36.3
36.6
26.1
33.9
39.0
38.5
31.5
48.0
RCE PARTICIPATION RATES, BY SEX AND AGE-GROUP-SELECTED COUNTRIES:
1975
85.1
79.0
78.9
81.0
76.7
70.2
84.2
82.2
77.3
77.3
84.5
125.6
1980
132.4
130.4
131.3
135.9
148.2
160.2
120.7
123.6
133.6
168.3
1980 AND 1986
1985
176.7
183.7
195.9
194.4
262.5
339.5
152.0
159.0
208.9
261.3
162.8
1986
181.9
(NA)
202.2
202.6
274.0
353.9
157.3
(NA)
223.1
282.4
171.0
tion rates represent percent of population of each specified group in labor force]
Average annual percent change:
13.2
18.3
10.1
1970-1980
8.7
14.1
10.6
14.1
15.0
19.9
13.5
12.2
15-19
20-24
25-54
55-64
65 YEARS
1980-1985
5.9
7.1
8.3
7.4
12.1
16.2
4.7
5.2
9.4
9.2
5.3
1985-1986
2.9
(NA)
3.3
4.2
4.4
4.2
3.5
(NA)
6.8
8.1
5.1
YEARS OLD
YEARS OLD
YEARS OLD
YEARS OLD
AND OVER
AND SEX
1980
1986
1980
1986
1980
1986
1980
1986
1980
1986
Real hourly compensation: 2 3
1970
89.6
61.0
79.2
68.5
67.5
62.3
68.7
68.6
71.7
79.2
69.4
1975
95.9
92.3
91.7
98.1
92.2
97.7
99.6
95.4
95.9
105.1
91.3
56.5
54.9
77.5
79.0
78.4
81.7
55.1
53.6
11.9
10.3
101.8
115.8
1980
97.4
112.0
100.2
100.3
107.4
101.6
103.6
106.9
112.2
60.5
56.8
85.7
85.4
93.4
93.0
71.2
66.7
18.3
15.4
1985
99.5
112.3
104.5
98.0
120.8
112.9
113.9
112.1
101.5
127.1
120.2
52.4
52.9
69.1
72.5
63.8
70.6
41.0
42.0
7.6
6.9
1986
100.5
(NA)
103.7
98.6
122.8
110.9
117.1
(NA)
104.0
132.8
126.5
Average annual percent change:
55.2
54.3
79.6
80.4
77.4
81.8
53.9
50.3
6.8
7.1
1970-1980
.8
6.3
2.4
3.9
4.8
5.0
4.2
4.5
3.6
3.9
4.9
58.1
55.9
86.2
84.5
94.8
93.9
76.2
68.5
14.7
11.8
1980-1985
.4
.8
-.5
2.4
2.1
1.9
9
-
1.9
1.4
52.2
52.7
72.9
76.2
60.1
69.8
33.7
33.3
4.3
3.6
1985-1986
1.0
(NA)
-.8
.6
1.7
-1.8
2.8
(NA)
2.5
4.5
5.3
22.0
15.2
73.7
70.8
79.8
83.2
53.4
39.8
5.0
3.2
25.7
18.2
80.2
76.2
96.4
95.9
68.5
49.5
7.5
5.0
Unit labor costs, national currency:
1970
71.0
58.2
63.4
55.4
52.6
36.0
52.3
60.7
47.7
39.5
67.4
18.3
12.1
67.5
65.5
63.0
70.5
39.7
30.9
3.3
2.0
93.8
1975
91.7
91.1
89.1
85.6
86.7
77.1
96.0
95.4
77.1
81.2
66.4
1980
130.6
109.0
133.7
121.0
132.3
137.0
98.4
108.5
118.6
165.4
115.7
2 31.1
26.2
65.1
65.9
368.1
(NA)
(NA)
11.5
10.7
1985
145.1
119.8
173.8
166.0
189.8
248.2
92.9
109.2
155.3
194.7
126.3
2 33.0
27.6
72.5
71.9
93.1
91.5
(NA)
(NA)
19.3
18.3
28.9
1986
144.3
(NA)
180.4
173.8
194.4
255.7
93.5
(NA)
163.6
204.4
130.2
2
2
24.8
57.9
60.9
3
39.9
3 45.6
(NA)
(NA)
*5.2
'4.8
Average annual percent change:
17.9
17.6
69.8
72.2
76.8
78.7
63.1
62.7
26.3
23.7
1970-1980
6.3
6.5
7.8
8.1
9.7
14.3
6.5
6.0
9.5
15.4
5.6
2.1
1.9
5.4
6.5
7.5
12.6
-1.1
.1
5.5
3.3
1.8
17.4
18.0
69.6
70.8
97.0
96.6
85.4
82.9
41.0
36.2
1980-1985
18.5
17.2
70.0
73.7
56.7
60.8
45.3
44.7
15.5
15.2
1985-1986
-.6
(NA)
3.8
4.7
2.4
3.0
.7
(NA)
5.3
5.0
3.1
55.5
45.0
83.1
81.1
89.3
92.6
66.8
68.3
8.7
6.8
Unit labor costs, U.S. dollar basis: 4
55.3
44.1
84.5
81.5
95.4
95.3
78.7
75.5
14.2
11.0
1970
71.0
42.0
64.5
44.4
46.8
50.6
39.1
41.2
41.1
54.2
42.9
55.3
61.4
3.7
3.2
1975
91.7
89.7
93.1
89.6
99.5
104.3
86.7
92.8
83.2
103.4
88.7
55.8
46.0
81.6
80.7
82.9
89.8
1980
130.6
133.7
121.5
129.0
154.1
141.4
116.8
134.2
125.3
220.5
147.9
74.4
72.4
77.1
77.0
79.5
80.7
59.4
50.4
6.2
4.6
1985
145.1
72.3
135.2
94.0
103.9
114.8
104.3
80.7
80.6
144.8
99.6
73.6
73.7
86.0
84.5
95.4
93.3
81.6
67.0
10.3
7.4
1986
144.3
(NA)
137.9
128.9
138.0
151.4
148.7
(NA)
102.5
171.9
139.2
75.3
71.1
68.8
69.2
63.4
68.0
39.1
35.0
3.6
2.7
Average annual percent change:
1970-1980
6.3
12.3
6.5
11.3
12.7
10.8
11.6
12.5
11.6
15.1
13.2
43.9
42.9
73.8
73.4
74.0
74.7
42.8
37.0
4.5
3.1
1980-1985
2.1
11.6
2.2
-6.1
-7.6
-4.1
-2.2
-9.7
-8.4
-8.1
-7.6
47.0
45.8
79.2
76.0
93.6
90.6
65.5
55.7
7.0
5.0
1985-1986
-.6
(NA)
2.0
37.1
32.8
31.9
42.6
(NA)
27.1
18.8
39.8
40.5
39.7
68.0
70.5
53.6
57.8
27.2
22.1
3.1
2.1
Employment:
sons 16-19 years old.
2
Persons
14-19
old.
3 Persons 25-59 years old.
4 Persons
1970
98.2
114.3
94.7
113.5
97.3
94.8
101.0
118.2
103.8
114.3
112.9
years
106.9
103.9
102.7
102.0
1975
93.0
108.6
101.7
100.0
101.4
99.7
101.7
1980
103.2
91.2
106.5
98.7
96.0
99.7
99.6
95.4
97.5
93.8
101.1
1403: Organization for Economic Cooperation and Development, Paris, France, Historical Statistics,
1985
98.3
78.6
101.4
107.1
84.2
87.5
107.4
84.0
89.0
73.5
91.4
Force Statistics, annual.
1986
97.8
(NA)
103.4
109.1
82.2
86.1
106.9
(NA)
88.9
72.1
92.8
Average annual percent change:
R FORCE AND UNEMPLOYMENT-SELECTED COUNTRIES: 1970 TO 1986
1970-1980
.5
-2.2
1.2
-1.4
-.1
.5
-.1
-2.1
-.6
-2.0
-1.1
1980-1985
-1.0
-2.9
-1.0
1.7
-2.6
-2.6
1.5
-2.5
-1.8
-4.8
-2.0
ce definitions adopted in 1967 (see text, section 13) except that minimum age for population base
1985-1986
-.5
(NA)
2.0
1.8
-2.3
-1.5
-1.5
(NA)
-.1
-1.9
1.5
lates, France, Sweden, and, beginning 1975, United Kingdom, 16 years; Australia, Canada, Japan,
0, United Kingdom, 15 years; Italy, 14 years]
Hours:
1970
97.3
130.2
97.2
125.1
105.3
107.4
107.9
131.2
114.6
119.1
121.7
1975
91.4
107.1
101.5
100.4
101.7
95.4
98.2
107.6
105.9
101.2
101.0
VILIAN LABOR FORCE (millions)
PERCENT UNEMPLOYED
1980
101.7
89.6
105.5
98.1
95.2
98.7
101.2
93.6
92.3
90.2
98.1
1985
98.9
75.1
100.8
105.5
78.5
84.4
109.6
79.2
84.6
71.0
86.7
1980
1982
1983
1984
1985
1986
1970
1975
1980
1982
1983
1984
1985
1986
1986
98.7
(NA)
103.0
108.9
76.7
86.2
108.3
(NA)
83.9
69.5
87.2
Average annual percent change:
1970-1980
.4
-3.7
.8
-2.4
-1.0
-.8
-.6
-3.3
-2.1
-2.7
-2.1
106.9
110.2
111.6
113.5
115.5
117.8
4.9
8.5
7.1
9.7
9.6
7.5
7.2
1980-1985
-.6
-3.5
-.9
1.5
-3.8
-3.1
1.6
-3.3
-1.7
-4.7
-2.5
7.0
1985-1986
-.2
(NA)
2.1
3.3
-2.3
2.1
-1.2
(NA)
-.9
-2.1
.6
6.7
6.9
7.0
7.1
7.3
7.6
1.6
4.9
6.1
7.2
10.0
9.0
8.3
8.1
11.6
12.0
12.2
12.4
12.6
12.9
5.7
6.9
7.5
11.0
11.9
11.3
10.5
9.6
22.8
23.2
23.1
23.3
23.3
23.5
2.5
4.2
6.4
8.3
8.5
9.9
10.4
10.7
NA Not available.
1 Includes West Berlin.
2 Compensation includes, but real hourly
21.1
21.4
21.6
¹ 21.7
21.8
22.0
3.2
3.4
4.4
5.4
5.9
15.9
16.0
compensation - Represents excludes, or rounds adjustments for payroll and employment taxes that are not compensation to employees, but are labor
to
zero.
'6.3
55.7
57.0
58.1
58.5
58.8
59.4
1.2
1.9
2.0
2.4
2.7
2.8
2.6
2.8
costs to employers. 3 Index of hourly compensation divided by the Index of consumer prices to adjust for changes in
4.3
4.4
4.4
4.4
4.4
4.4
1.5
1.6
2.0
3.1
3.5
3.1
2.8
2.7
purchasing power.
4 Indexes in national currency adjusted for changes In prevailing exchange rates.
Source: U.S. Bureau of Labor Statistics, Monthly Labor Review, and News Release USDL 87-237, "International Comparisons of
26.5
26.7
26.8
27.1
1
27.3
1 27.3
3.1
4.6
7.0
11.4
1 11.9
11.7
11.3
11.5
Manufacturing Productivity and Labor Cost Trends," June 15, 1987.
26.5
26.7
26.7
26.9
27.1
1 27.3
.5
3.4
2.9
5.9
7.4
'7.8
17.9
¹7.6
di on incomplete data.
2 Includes West Berlin.
if Statistics, Handbook of Labor Statistics, periodic, and Monthly Labor Review.
National Data Book and
Guide to Sources
STATISTICAL
ABSTRACT
OF THE
UNITED
STATES
1988
108th Edition
U.S. Department
of Commerce
BUREAU OF
THE CENSUS
Inde
812
Comparative International Statistics
No. 1405. SELECTED INDEXES OF MANI
No. 1402. LABOR FORCE PARTICIPATION RATES, BY SEX, AND FEMALES AS PERCENT OF TOTAL
[1977 = Data relate to all employed persons
LABOR FORCE-SELECTED COUNTRIES: 1970 TO 1986
(-) indicates decrease. For explanation (
LABOR FORCE PARTICIPATION RATES 1
FEMALES AS PERCENT OF
Unit-
COUNTRY
Female
TOTAL LABOR FORCE
INDEX AND YEAR
ed
Male
States
1970
1980
1984
1985
1986
1970
1980
1984
1985
1986
1970
1980
1984
1985
1986
Output per hour:
United States
50.4
61.3
64.3
65.5
66.5
90.1
87.8
Canada
87.0
87.1
87.2
36.7
1970
41.9
41.1
43.1
57.8
43.5
80.8
62.0
63.2
43.8
64.3
87.1
87.5
85.9
86.2
86.5
32.2
40.0
1975
France
47.5
52.5
42.2
42.6
56.1
56.4
42.9
92.9
57.2
86.9
83.4
78.6
Italy
78.7
78.2
36.6
1980
29.1
40.1
39.2
42.0
42.2
42.7
101.4
40.3
40.6
42.0
82.0
81.2
78.0
1985
Japan
77.7
77.7
27.1
55.4
33.4
54.9
34.8
35.1
121.7
57.2
57.2
35.8
57.4
89.4
89.0
Sweden
88.4
87.8
87.5
39.3
38.7
1986
60.6
75.7
39.6
78.8
39.7
39.8
126.0
79.7
80.5
90.6
89.8
87.2
87.5
United Kingdom
87.5
39.5
53.5
45.2
61.7
46.9
62.2
47.1
47.3
Average annual percent change:
62.9
63.5
96.1
91.5
87.8
1970-1980
West Germany
87.8
87.3
36.2
48.1
40.3
50.0
41.4
49.2
41.7
2.3
50.4
51.4
42.0
92.5
83.6
79.9
79.9
79.2
35.9
37.8
38.5
1980-1985
38.7
39.0
3.7
1985-1986
3.5
1 Labor force of all ages as percent of population, 15-64 years old.
Compensation per hour, national
currency basis: 2
No. 1403. LABOR FORCE PARTICIPATION RATES, BY SEX AND AGE-GROUP-SELECTED COUNTRIES:
1970
57.4
1975
85.1
1980 AND 1986
1980
132.4
1985
176.7
[Participation rates represent percent of population of each specified group in labor force]
1986
181.9
Average annual percent change:
1970-1980
15-19
8.7
20-24
25-54
55-64
65 YEARS
1980-1985
YEARS OLD
5.9
COUNTRY AND SEX
YEARS OLD
YEARS OLD
YEARS OLD
AND OVER
1985-1986
2.9
1980
1986
1980
1986
1980
1986
1980
1986
1980
1986
Real hourly compensation: R 3
1970
89.6
United States: Total
56.5
54.9
77.5
79.0
78.4
81.7
55.1
1975
Male
53.6
11.9
10.3
95.9
60.5
56.8
85.7
85.4
93.4
1980
Female
93.0
71.2
66.7
18.3
15.4
97.4
52.4
52.9
69.1
72.5
63.8
70.6
41.0
1985
42.0
7.6
6.9
99.5
1986
Canada: Total
100.5
55.2
54.3
79.6
80.4
Male
77.4
81.8
53.9
50.3
8.8
7.1
Average annual percent change:
58.1
55.9
86.2
84.5
94.8
Female
93.9
76.2
68.5
14.7
11.8
1970-1980
.8
52.2
52.7
72.9
76.2
60.1
69.8
33.7
33.3
4.3
3.6
1980-1985
.4
France: Total
1985-1986
1.0
22.0
15.2
73.7
70.8
Male
79.8
83.2
53.4
39.8
5.0
3.2
25.7
18.2
80.2
76.2
96.4
Female
95.9
68.5
49.5
7.5
5.0
Unit labor costs, national currency:
18.3
12.1
67.5
65.5
63.0
70.5
39.7
30.9
3.3
2.0
1970
71.0
Italy: Total
1975
31.1
91.7
26.2
65.1
66.4
Male
65.9
68.1
(NA)
(NA)
11.5
10.7
1980
33.0
130.6
27.6
72.5
71.9
3
Female
93.1
91.5
(NA)
(NA)
19.3
18.3
1985
145.1
28.9
24.8
57.9
60.9
3
39.9
³ 45.6
(NA)
(NA)
45.2
4.8
1986
144.3
Japan: Total
17.9
17.6
69.8
72.2
Average annual percent change:
Male
76.8
78.7
63.1
62.7
26.3
23.7
1970-1980
17.4
18.0
69.6
70.8
6.3
Female
97.0
96.6
85.4
82.9
41.0
36.2
1980-1985
18.5
17.2
70.0
73.7
2.1
56.7
60.8
45.3
44.7
15.5
15.2
1985-1986
-.6
Sweden: Total
55.5
45.0
83.1
81.1
Male
89.3
92.6
66.8
68.3
8.7
6.8
55.3
44.1
84.5
Female
81.5
95.4
95.3
Unit labor costs, U.S. dollar basis: 4
78.7
75.5
14.2
11.0
55.8
46.0
81.6
1970
80.7
82.9
89.8
55.3
71.0
61.4
3.7
3.2
1975
91.7
United Kingdom: Total
74.4
72.4
77.1
77.0
79.5
Male
80.7
59.4
1980
50.4
6.2
4.6
130.6
73.6
73.7
86.0
84.5
95.4
1985
93.3
81.6
67.0
10.3
7.4
145.1
Female
75.3
71.1
68.8
69.2
63.4
68.0
1986
39.1
35.0
3.6
2.7
144.3
West Germany: Total
Average annual percent change:
43.9
42.9
73.8
73.4
74.0
74.7
Male
42.8
37.0
4.5
3.1
1970-1980
6.3
47.0
45.8
79.2
76.0
93.6
Female
90.6
65.5
55.7
7.0
5.0
1980-1985
2.1
40.5
39.7
68.0
70.5
53.6
57.8
27.2
22.1
3.1
2.1
1985-1986
-.6
NA Not available.
1 Persons 16-19 years old.
2 Persons 14-19 years old.
Employment:
60 years old and over.
3 Persons 25-59 years old.
4 Persons
1970
98.2
1975
1960-1982, 1984; and Labour Force Statistics, annual.
Source of tables 1402 and 1403: Organization for Economic Cooperation and Development, Paris, France, Historical Statistics,
93.0
1980
103.2
1985
98.3
1986
97.8
No. 1404. LABOR FORCE AND UNEMPLOYMENT-SELECTED COUNTRIES: 1970 TO 1986
Average annual percent change:
1970-1980
.5
[Data based on U.S. labor force definitions adopted in 1967 (see text, section 13) except that minimum age for population base
1980-1985
-1.0
varies as follows: United States, France, Sweden, and, beginning 1975, United Kingdom, 16 years; Australia, Canada, Japan,
1985-1986
-.5
West Germany, and, for 1970, United Kingdom, 15 years; Italy, 14 years]
Hours:
1970
97.3
CIVILIAN LABOR FORCE (millions)
PERCENT UNEMPLOYED
1975
91.4
COUNTRY
1980
101.7
1970
1975
1980
1982
1983
1984
1985
1986
1970
1975
1980
1982
1983
1984
1985
1985
1986
98.9
1986
98.7
United
Average annual percent change:
States
82.8
93.8
106.9
1970-1980
110.2
111.6
113.5
115.5
.4
117.8
Australia
4.9
8.5
5.5
7.1
9.7
6.2
9.6
6.7
7.5
7.2
7.0
1980-1985
6.9
7.0
7.1
7.3
-.6
7.6
Canada
1.6
4.9
6.1
8.4
10.0
7.2
10.0
9.0
11.6
8.3
12.0
12.2
8.1
1985-1986
12.4
12.6
12.9
-.2
France
5.7
6.9
7.5
20.8
11.0
11.9
21.8
11.3
22.8
10.5
23.2
9.6
23.1
23.3
23.3
Italy
23.5
2.5
4.2
6.4
8.3
19.7
20.1
8.5
21.1
9.9
21.4
21.6
10.4
10.7
21.7
21.8
22.0
Japan
3.2
3.4
4.4
50.7
5.4
5.9
- Represents or rounds to zero. NA Not
52.5
55.7
15.9
57.0
¹6.0
16.3
58.1
58.5
58.8
Sweden
59.4
1.2
1.9
3.9
2.0
2.4
4.1
4.3
2.7
2.8
2.6
4.4
4.4
2.8
compensation excludes, adjustments for payroll
4.4
4.4
United
4.4
1.5
1.6
2.0
3.1
3.5
costs to employers.
3.1
2.8
2.7
3 Index of hourly comp
purchasing power.
4 Indexes in national curren
Kingdom
25.1
25.7
26.5
26.7
26.8
1 27.1
27.3
West
27.3
3.1
4.6
7.0
11.4
11.9
11.7
11.3
11.5
Source: U.S. Bureau of Labor Statistics, Monthl
Germany 2
26.2
26.1
26.5
Manufacturing Productivity and Labor Cost Trends
26.7
26.7
26.9
27.1
27.3
.5
3.4
2.9
5.9
7.4
'7.8
¹7.9
¹7.6
1 Preliminary estimates based on incomplete data.
2 Includes West Berlin.
Source: U.S. Bureau of Labor Statistics, Handbook of Labor Statistics, periodic, and Monthly Labor Review.
30
George Bush
Looking Forward
31
When the Japanese bombed Pearl Harbor, December 7,
trainees-the youngest aviator in the Navy when I got my
1941, there wasn't any doubt which branch of the service I'd
wings. To make matters worse, I looked younger than I
join. My thoughts immediately turned to naval aviation.
actually was-enough to make me self-conscious. When
College was coming up the following fall, but that would
Barbara came to visit-she was on her way to school in
have to wait. The sooner I could enlist, the better.
South Carolina-I even asked her to stretch the calendar,
Six months later I got my diploma from Phillips Acad-
add a few months to her age, and tell anybody who asked
emy Andover. Secretary of War Henry Stimson came from
that she was eighteen, not seventeen.
Washington to deliver the commencement address. He told
We'd met six months before, at a Christmas dance. I'm
members of our graduating class the war would be a long
not much at recalling what people wear, but that particular
one, and even though America needed fighting men, we'd
occasion stands out in my memory. The band was playing
serve our country better by getting more education before
Glenn Miller tunes when I approached a friend from Rye,
New York, Jack Wozencraft, to ask if he knew a girl across
getting into uniform.
the dance floor, the one wearing the green-and-red holiday
After the ceremony, in a crowded hallway outside the
dress. He said she was Barbara Pierce, that she lived in Rye
auditorium, my father had one last question about my fu-
and went to school in South Carolina. Would I like an intro-
ture plans. Dad was an imposing presence, six feet four,
duction? I told him that was the general idea, and he intro-
with deep-set blue-gray eyes and a resonant voice.
duced us, just about the time the bandleader decided to
"George," he said, "did the Secretary say anything to
change tempos, from fox trot to waltz. Since I didn't waltz,
change your mind?"
we sat the dance out. And several more after that, talking
"No, sir," I replied. "I'm going in."
and getting to know each other.
Dad nodded and shook my hand.
It was a storybook meeting, though most couples that
On my eighteenth birthday, I went to Boston and was
got serious about each other in those days could say the
sworn into the Navy as a Seaman Second Class. Not long
same about the first time they met. Young people in the late
thereafter, I was on a railway coach headed south for Navy
1930s and early '40s were living with what modern psychol-
preflight training in North Carolina.
ogists call heightened awareness, on the edge. It was a time
of uncertainty, when every evening brought dramatic radio
newscasts-Edward R. Murrow from London, William L.
I'd joined up to fly, and like the piano student who
Shirer from Berlin-reporting a war we knew was headed
didn't see why he couldn't begin his lessons playing Rhap-
our way:
sody in Blue, I was gung ho to strap on the leather helmet
In the eight months that passed from that first meeting
and goggles the day I arrived at Chapel Hill. Because of the
until her visit to Chapel Hill, Barbara and I had progressed
pilot shortage, the Navy had trimmed its aviator training
from simply being "serious," to meeting and spending time
course to ten months, but there weren't any shortcuts. It
with each other's families-a fairly important step for teen-
would be months before I'd finally climb into a Stearman
agers in those days. After I got my wings and went into
N-2S trainer-the Navy's "Yellow Peril," a two-cockpit,
advanced flight training, we took the next important step. In
open-air special. Even then I got the impression that my
August of 1943, she joined the Bush summer convocation in
instructor thought I was still too fuzz-faced to trust with an
Maine where, between boating and fishing excursions, we
expensive piece of Navy equipment.
were secretly engaged. Secret, to the extent that the German
Looking through old scrapbooks at photos taken at the
and Japanese high commands weren't aware of it. That De-
time, I can't say I blame him. I was younger than the other
cember we went public with our engagement, though we
32
George Bush
Looking Forward
33
knew that marriage was years away. My training days were
Pacific island of World War Two, Iwo Jima. The day before,
drawing to a close at the Naval Air Station in Charlestown,
Delaney, Nadeau, and I had flown a mission targeting gun
Rhode Island. In the fall of 1943 I was assigned to VT-51, a
emplacements on Chichi. We knocked some out, but not
torpedo squadron being readied for active duty in the Pa-
enough. The Japanese who were dug in on the island still
had a potent antiaircraft reserve.
cific.
Delaney, Nadeau, and I had been together since VT-51
was first attached to the San Jacinto, back in the States.
Eight months after V-J Day, Life magazine ran a story,
We'd flown missions over Wake Island, Palau, Guam,
"Home to Chichi Jima," telling of the war-crimes trial of
and Saipan, and survived a fair number of close calls, in-
two Japanese officers charged with executing American fli-
cluding a ditching operation when our plane sprang a leak
ers shot down over the Bonin Islands and "even more re-
while still carrying four depth charges intended for enemy
volting, of practicing cannibalism on them."
subs. How do you put a TBM Avenger into the water with
I read the piece as a Yale freshman, not long out of the
four 500-pound bombs in its belly? Very carefully, with
Navy. It brought back memories of the worst hours 1 spent
adrenaline running, a prayer on your lips; and your fingers
crossed.
during the war.
The date was September 2, 1944. It was the second day
In flight training at Corpus Christi and along the East
of concentrated air strikes on the Bonins by our squadron,
Coast, we were taught to gauge wind velocity and the height
VT-51, operating off the San Jacinto, one of eight fast carri-
of waves. Given winds at about fifteen knots and a fair chop
ers in Vice Admiral Marc Mitscher's Task Force 58. My
on the sea, I trimmed the nose of the plane as high as possi-
aviator's log book for that day reads: Crash Landing in Sea
ble without risking a stall. We landed tailfirst and were able
-Near Bonin Is.-Enemy action.
to scramble onto the wing, inflate our safety raft, and start
Under the column for Passengers were the names Dela-
paddling, just as the plane went down,
ney and Lt. (jg) White. Jack Delaney was the young radio-
We felt lucky. Within seconds we felt even luckier,
man/tail gunner on my Grumman Avenger torpedo
when the plane's torpedoes detonated after their safety de-
bomber. William G. (Ted) White was the squadron's gun-
vices gave way to undersea pressure. Then, about thirty
nery officer, filling in that day for Leo Nadeau, our regular
minutes later, came a happy ending: the destroyer U.S.S.
Bronson sighted our raft and picked us up.
turret gunner.
VT-51 had an air complement of twenty-six F6F Hell-
cats and nine TBM Avengers. The quick, mobile Hellcat
fighter kept the skies clear of enemy aircraft. The Avenger
Like most TBM Avenger pilots, I liked the teamwork
had earned a reputation as the biggest; best single-engine
and camaraderie that went with being part of a three-man
bomber around, used for torpedo runs, glide bombing, an-
crew. I became attached to my plane; nicknaming it "Bar-
tisub patrols, and providing air cover during amphibious
bara."
landings. The TBM carried a three-man crew-aviator, tur-
The TBM Avenger wasn't fast-the unofficial Navy
ret gunner, and radioman/tail gunner, or "stinger," along
line described it as "low and slow." As Leo Nadeau once
with a 2,000-pound bomb payload.
put it, the TBM "could fall faster than it could fly." Cruis-
The target for that day was a radio communications
ing speed was about 140 knots, brought down to less then 95
center on Chichi Jima, one of three islands in the Bonin
knots for a carrier landing. But it was sturdy and stable.
chain. The others were Haha Jima and the best-remembered
Sturdy and stable enough to allow for pilot error on even a
40
George Bush
Looking Forward
41
cue, I wrote a letter, later mailed to my parents, that de-
I arrived Christmas Eve. There were tears, laughs, hugs, joy,
scribed my feelings at the time:
the love and warmth of family in a holiday setting.
"I try to think about it as little as possible," I said, "yet
Barbara and I were married two weeks later, January 6,
I cannot get the thought of those two out of my mind. Oh,
1945, at the First Presbyterian Church in her hometown,
I'm O.K.-I want to fly again and I won't be scared of it,
Rye, New York, with a close friend from VT-51, Milt
but I know I won't be able to shake the memory of this
Moore, as a member of the wedding party.
incident and I don't believe I want to completely."
A few months later I was reassigned to VT-153, a Navy
Then there were the better moments spent standing
torpedo bomber group being readied for the invasion of Ja-
watch on the tower during the midnight to four A.M. shift,
pan. Everything I'd experienced in my year and a half of
when the Finback ran on the surface to recharge its batter-
combat in the Pacific told me it was going to be the bloodi-
ies. The sub moved like a porpoise, water lapping over its
est, most prolonged battle of the war. Japan's war leaders
bow, the sea changing colors, first jet black, then sparkling
were unfazed by massive raids on Tokyo. They seemed bent
white. It reminded me of home and our family vacations in
on national suicide, regardless of the cost in human life.
Maine. The nights were clear and the stars so bright you felt
Now, years later, whenever I hear anyone criticize
you could touch them. It was hypnotic. There was peace,
President Truman's decision to drop the atomic bomb on
calm, beauty-God's therapy.
Hiroshima and Nagasaki, I wonder whether the critic re-
I still don't understand the "logic" of war-why some
members those days and has really considered the alterna-
survive and others are lost in their prime. But that month on
tive: millions of fighting men killed on both sides, possibly
the Finback gave me time to reflect, to go deep inside myself
tens of millions of Japanese civilians. Harry Truman's deci-
and search for answers. As you grow older and try to re-
sion wasn't just courageous, it was far-sighted. He spared
trace the steps that made you the person you are, the sign-
the world and the Japanese people an unimaginable holo-
caust.
posts to look for are those special times of insight, even
I was stationed at Oceana Naval Air Station, Virginia,
awakening. I remember my days and nights abcard the
U.S.S. Finback as one of those times-maybe the most im-
on the mid-August day when the President announced that
the Japanese had sued for peace. Barbara and I were living
portant of them all.
in Virginia Beach. The announcement came at seven P.M.
Within minutes our neighborhood streets were filled with
sailors, aviators, their wives and families celebrating late
I rejoined the San Jacinto and VT-51 exactly eight
into the night. We joined in the celebration, then, before
weeks after being shot down, in time to take part in strikes
going home, went to a nearby church filled with others giv-
against enemy positions and shipping in the Philippines. In
ing thanks and remembering those lost in the war. After
October 1944 American troops had landed at Leyte; in No-
four years it was finally over.
vember our squadron was in action at Manila Bay and in the
We were still young, life lay ahead of us, and the world
Luzon area. We also got news that over one hundred B-29s,
was at peace. It was the best of times.
taking off from Saipan, had bombed Tokyo. Three years
after it had begun, the war in the Pacific was coming full
circle, a noose tightening around the Japanese home islands.
YALE'S HITTING BIG FACTOR
In December VT-51 was replaced by a new squadron,
IN TEAM'S DIAMOND SUCCESS
and after flying fifty-eight combat missions I was ordered
The ability of the Yale Baseball team to back
home. No reunion could have been scripted more perfectly.
up some mighty impressive pitching on the part of
66
George Bush
Looking Forward
67
ahead. But Eugene Meyer never looked back. We had other
forces: they'd raise $500,000, Bush-Overbey would raise
oil-business dealings over the years, most of them profitable,
$500,000, and the two companies would be rolled into one
all enjoyable.
entity. We'd buy producing properties on the oil-payment
plan, with the $1 million for equity.
Excerpt, letter from John Overbey, 1986
Agreed. Now, what would we call our new company?
Bush-Overbey rocked along and made a few
Late one night, Hugh and I were going over possible names.
good deals and a few bad ones, but somehow man-
We wanted something that would attract attention, a com-
aged to stay in the black the entire three years of its
pany name that would "stand out," as Hugh said, when
existence. The Scurry County boom began to fade
somebody opens the phone book."
in 1951-52, but was replaced by the Spraberry
Deep-voiced, with a pronounced Oklahoma drawl,
boom. We were active in the Spraberry boom, and I
Hugh was impressive even in his younger days, before he
became "Mr. Pennzoil," a legend in the U.S. domestic oil
remember one trade in particular you made for a
piece of property there.
industry.
"It ought to start with either an A or a Z, he said, "so
You telephoned an absentee owner who lived in
it comes either first or last in the pages under 'Independent
East Texas, and after much haggling settled on
Oil Operators.' Nothing in between that could be lost in
buying part of his Reagan County royalty for $150
the shuffle-that was Hugh's m.o. right from the start.
an acre. After you both agreed, you suggested an
The movie Viva Zapatal, starring Marlon Brando, was
exchange of telegrams to verify the deal in writing.
playing in downtown Midland. It was the story of Emiliano
The East Texas seller demurred, saying a deal was
Zapata, the Mexican rebel leader who led a revolt for land
a deal and "My word is my bond.'
reform in the early 1900s under the slogan "Tierra y.
You, having been indoctrinated in the oil patch
Libertad"-"Land and Liberty." We couldn't afford a pub-
myth that a handshake was all the contract you
lic-relations counsel, but if we had one he would have told
needed, agreed to forego the exchange of telegrams
us that was exactly the corporate image we were looking for.
and sent him a deed and a draft in the mail. Ten
And that's the way Zapata Petroleum was born. The
days passed and you didn't hear from the guy, so
following year it would spin off Zapata Off-Shore, and in
you called him again. Yes, he said, he'd received
time, under Hugh Liedtke's imaginative management,
your deed and draft but sold the property to Nash
merge into Pennzoil.
Dowdle instead, for $151.50 an acre. Apparently his
Zapata: There was a winning chemistry about the com-
"bond" was worth $1.50 an acre.
pany. We could sense it.
According to the recent news, our friend Hugh
Liedtke is still making oil deals on a handshake;
but he seems to make them a bit more profitable.
I was at the Ector County courthouse, twenty miles
from Midland, checking land records, when Barbara called.
Bill and Hugh Liedtke still had their licenses to prac-
She said Dr. Wyvell wanted to see us, right away. Dorothy
tice law, but their law books, except for the ones on leases
Wyvell was the children's doctor. In a town the size of Mid-
and mineral rights, were gathering dust. The Liedtkes had
land, more than a doctor, she was a warm, personal friend.
long since abandoned the courthouse for the oil fields, as
When we went into the doctor's office and sat down, all
independent oil operators with offices next door to Bush-
I knew was that Robin had been in for a checkup because
Overbey. Then, in 1953; Bill and Hugh suggested we join
she'd been acting listless. But I knew something was seri-
96
George Bush
Looking Forward
97
office-and still is-that when any of the kids called, no
matter what I was doing, they should be put through. On
I'm a good listener. That's not a boast, it's something I
weekends we worked things out so that I'd be able to get
learned about myself at a young age. It was reinforced after
together with them individually.
I came to Washington. Like most people in politics, I like to
These were the most important hours I spent during
hear myself talk, but I like getting another point of view,
the week. Life in Washington can put tremendous pressure
especially when it comes from a keen analytical or innova-
on even a freshman congressman's family. It can be a trap.
tive mind.
You go into public life hoping to secure the future for your
Bill Steiger had that kind of mind. At twenty-eight, Bill
children and the next generation. Then somewhere along
was one of the youngest members of Congress, but he had a
the way, utiless you're careful, you can overlook the fact
razor-sharp intelligence that cut through to the core of
that your first responsibility as a parent is to be there now,
things and the intellectual honesty to follow wherever logic
when your kids need you, while they're growing. Barbara
led him-even if it ran counter to whatever cant or conven-
and I were determined when we moved to Washington that
tional wisdom was going the Washington rounds.
we weren't going to forget our number one priority as par
Bill and Janet Steiger, along with Supreme Court Jus-
ents.
tice Potter Stewart and his wife, Mary Ann, were regulars at
the informal Sunday barbecues Barbara and I had on the
patio of our home on Hillbrook Lane in northwest Washing-
A congressman is only as good as his staff, and in addi-
ton. We'd bought the place sight unseen, over the telephone,
tion to bringing my Texas team, including Jim Allison, Pete
from retiring Senator Milward Simpson (current Senator
Roussel, and Aleene Smith to Washington, one of my
Alan Simpson's father). Old Milward was a good trader. We
smartest moves after being elected to Congress was in hiring
sold the house in less than two years at a loss-possibly the
Rose Zamaria to manage my office in the Longworth Build-
only people to achieve that distinction in Washington's
ing. Rose had worked for Albert Thomas, a retired senior
booming real-estate market.
Texas congressman from Houston. She not only knew my
We then moved to Palisade Lane, an ideal home and
constituency but understood the way things operated on
location for our family needs. It was comfortable, and con-
Capitol Hill-the mechanics and nuances (some might say
venient to the kids' schools.
tribal customs) that make Congress a unique institution.
The barbecues were one way Barbara and I had of
Was I looking for cosponsors to a resolution? "Talk to
holding onto the lifestyle we-and our children-knew back
Congressman A," Rose would advise, "he's always been in-
in Houston. George was twenty, but the other kids were still
terested in that issue. But don't bother taking it up with
in various stages of preadolescence; Jeb was thirteen; Neil
Congressman B, because if it doesn't have anything to do
had just turned twelve; Marvin was ten; and our youngest,
with his district he's not interested. And when you talk to
Doro, was seven.
Congressman C about it, don't mention Congressman D's
Barbara was the mainstay, of course, the parent who
name, because they just had it out at a closed committee
was always there to help solve the daily problems and emer-
hearing and won't even agree on the day of the month."
gencies of teen and preteen life. But it was understood at my
Rose also had great sensitivity about doing the right
thing at the right time. The best example of this came on
Bill Steiger seemed destined for leadership in Congress and the national scene, but
Inauguration Day, January 20, 1969. Thanks in large part to
his life was tragically cut short by illness on December 4, 1978. I am godfather to his
the efficient way my office staff took care of constituent
son, Bill, Jr., who at a young age shows the same qualities of mind and spirit his father
had.
needs, I'd been re-elected without opposition. A special
Weekly Compilation of
Presidential
Docume
111 RESEARCH
Pres. Documents
Monday, February 13, 1989
Volume 25-Number 6
Pages 159-186
a
ice
can be tapped safely, as with much of the
citizens. And in this budget, Social Security
waste left from decades of environmental
Alaska National Wildlife Refuge, we should
is fully funded, including a full cost-of-living
neglect at America's nuclear weapons
'11-
proceed. But we must use caution. We must
adjustment. We must honor our contract.
plants. Clearly, we must modernize these
ie,
respect the environment. And so, tonight
We must care about those in the shadow
plants and operate them safely. That's not
I'm calling for the indefinite postponement
of life, and I, like many Americans, am
at issue; our national security depends on it.
he
of three lease sales which have raised trou-
deeply troubled by the plight of the home-
But beyond that, we must clean up the old
at
bling questions, two off the coast of Califor-
less. The causes of homelessness are many;
mess that's been left behind. And I propose
a
nia and one which could threaten the Ever-
the history is long. But the moral impera-
in this budget to more than double our cur-
go
glades in Florida. Action on these three
tive to act is clear. Thanks to the deep well
rent effort to do so. This will allow us to
let
lease sales will await the conclusion of a
of generosity in this great land, many orga-
identify the exact nature of the various
on-
special task force set up to measure the
nizations already contribute. But we in gov-
problems so we can clean them up, and
potential for environmental damage.
ernment cannot stand on the sidelines. In
in
clean them up we will.
I'm directing the Attorney General and
my budget, I ask for greater support for
er
We've been fortunate during these past 8
the Administrator of the Environmental
emergency food and shelter, for health
he
years. America is a stronger nation than it
Protection Agency to use every tool at their
services and measures to prevent substance
was in 1980. Morale in our Armed Forces
ise
disposal to speed and toughen the enforce-
abuse, and for clinics for the mentally ill.
he
has been restored. Our resolve has been
ment of our laws against toxic waste dump-
And I propose a new initiative involving
ar-
Ve
ers. I want faster cleanups and tougher en-
the full range of government agencies. We
shown. Our readiness has been improved.
must confront this national shame.
And we are at peace. There can no longer
ny
forcement of penalties against polluters.
There's another issue that I've decided to
be any doubt that peace has been made
ch
In addition to caring for our future, we
mention here tonight. I've long believed
more secure through strength. And when
must care for those around us. A decent
that the people of Puerto Rico should have
America is stronger, the world is safer.
le-
society shows compassion for the young, the
the right to determine their own political
Most people don't realize that after the
on-
elderly, the vulnerable, and the poor. Our
future. Personally, I strongly favor state-
successful restoration of our strength, the
ble
first obligation is to the most vulnerable-
hood. But I urge the Congress to take the
Pentagon budget has actually been reduced
on
infants, poor mothers, children living in
necessary steps to allow the people to
in real terms for each of the last 4 years.
for
poverty-and my proposed budget recog-
decide in a referendum.
We cannot tolerate continued real reduc-
nizes this. I ask for full funding of Medicaid,
Certain problems, the result of decades of
tion in defense. In light of the compelling
1
a
an increase of over $3 billion, and an expan-
unwise practices, threaten the health and
need to reduce the deficit, however, I sup-
Ne
sion of the program to include coverage of
security of our people. Left unattended,
port a 1-year freeze in the military budget,
nd
pregnant women who are near the poverty
they will only get worse. But we can act
something I proposed last fall in my flexible
re
line. I believe we should help working fami-
now to put them behind us.
freeze plan. And this freeze will apply for
a
lies cope with the burden of child care. Our
Earlier this week, I announced my sup-
only 1 year, and after that, increases above
ons
help should be aimed at those who need it
port for a plan to restore the financial and
inflation will be required. I will not sacrifice
for
most: low-income families with young chil-
moral integrity of our savings system. I ask
American preparedness, and I will not com-
for
dren. I support a new child care tax credit
Congress to enact our reform proposals
promise American strength.
an
that will aim our efforts at exactly those
within 45 days. We must not let this situa-
I should be clear on the conditions at-
on
families, without discriminating against
tion fester. We owe it to the savers in this
tached to my recommendation for the
gy
mothers who choose to stay at home.
country to solve this problem. Certainly,
coming year: The savings must be allocated
da.
da,
Now, I know there are competing propos-
the savings of Americans must remain
to those priorities for investing in our future
als. But remember this: The overwhelming
secure. Let me be clear. Insured depositors
that I've spoken about tonight. This defense
nt.
majority of all preschool child care is now
will continue to be fully protected. But any
freeze must be a part of a comprehensive
'm
provided by relatives and neighbors and
plan to refinance the system must be ac-
budget agreement which meets the targets
he
We
churches and community groups. Families
companied by. major reform. Our proposals
spelled out in Gramm-Rudman-Hollings law
who choose these options should remain eli-
will prevent such a crisis from recurring.
without raising taxes and which incorpo-
ew
gible for help. Parents should have choice.
The best answer is to make sure that a mess
rates reforms in the budget process.
np
And for those children who are unwanted
like this will never happen again. The ma-
I've directed the National Security Coun-
our
ch-
or abused or whose parents are deceased,
jority of thrifts in communities across the
cil to review our national security and de-
we should encourage adoption. I propose to
Nation have been honest. They've played a
fense policies and report back to me within
reenact the tax deduction for adoption ex-
major role in helping families achieve the
90 days to ensure that our capabilities and
ins
dream of home ownership. But make no
resources meet our commitments and strat-
nd
penses and to double it to $3,000. Let's
mistake, those who are corrupt, those who
ion
make it easier for these kids to have parents
egies. I'm also charging the Department of
break the law, must be kicked out of the
Defense with the task of developing a plan
ign
who love them.
business; and they should go to jail.
to improve the defense procurement proc-
181
Feb. 9 / Administration of George Bush, 1989
ess and management of the Pentagon, one
day against the proliferation of nuclear
Americans, because the definition of a su
cessful life must include serving others.
which will fully implement the Packard
weapons.
And to the young people of America, wl
commission report. Many of these changes
And around the globe, we must continue
to be freedom's best friend. And we must
sometimes feel left out, I ask you tonight
can only be made with the participation of
give us the benefit of your talent ai
the Congress, and so, I ask for your help.
stand firm for self-determination and de-
energy through a new program called YE
We need fewer regulations. We need less
mocracy in Central America, including in
for Youth Entering Service to America.
bureaucracy. We need multiyear procure-
Nicaragua. It is my strongly held conviction
To those men and women in busine:
ment and 2-year budgeting. And frankly-
that when people are given the chance
remember the ultimate end of your wor
and don't take this wrong-we need less
they inevitably will choose a free press,
to make a better product, to create bett
congressional micromanagement of our na-
freedom of worship, and certifiably free and
lives. I ask you to plan for the longer ter
tion's military policy. I detect a slight divi-
fair elections.
and avoid that temptation of quick and ea:
sion on that question, but nevertheless-
We must strengthen the alliance of the
paper profits.
[laughter].
industrial democracies, as solid a force for
To the brave men and women who we:
Securing a more peaceful world is per-
haps the most important priority I'd like to
peace as the world has ever known. And
the uniform of the United States of Ame
address tonight. You know, we meet at a
this is an alliance forged by the power of
ica, Thank you. Your calling is a high on
time of extraordinary hope. Never before in
our ideals, not the pettiness of our differ-
to be the defenders of freedom and th
ences. So, let's lift our sights to rise above
guarantors of liberty. And I want you t
this century have our values of freedom,
democracy, and economic opportunity been
fighting about beef hormones, to building a
know that this nation is grateful for you
such a powerful and intellectual force
better future, to move from protectionism
service.
around the globe. Never before has our
to progress.
To the farmers of America, we appreciat
I've asked the Secretary of State to visit
the bounty you provide. We will work wit
leadership been so crucial, because while
Europe next week and to consult with our
you to open foreign markets to America
America has its eyes on the future, the
world has its eyes on America.
allies on the wide range of challenges and
agricultural products.
And it's a time of great change in the
opportunities we face together, including
And to the parents of America, I ask yo
world, and especially in the Soviet Union.
East-West relations. And I look forward to
to get involved in your child's schooling
Check on the homework. Go to the schoo
Prudence and common sense dictate that
meeting with our NATO partners in the
we try to understand the full meaning of
meet the teachers, care about what is haj
near future.
pening there. It's not only your child
the change going on there, review our poli-
And I, too, shall begin a trip shortly to
future on the line, it's America's.
cies, and then proceed with caution. But
the far reaches of the Pacific Basin, where
I've personally assured General Secretary
To kids in our cities, don't give up hope
the winds of democracy are creating new
Gorbachev that at the conclusion of such a
Say no to drugs. Stay in school. And, ye:
hope and the power of free markets is un-
"Keep hope alive."
review we will be ready to move forward.
leashing a new force.
We will not miss any opportunity to work
To those 37 million Americans with som
When I served as our representative in
for peace. The fundamental facts remain
form of disability, you belong in the eco.
China 14 or 15 years ago, few would have
that the Soviets retain a very powerful mili-
nomic mainstream. We need your talents i:
predicted the scope of the changes we've
tary machine in the service of objectives
America's work force. Disabled American
witnessed since then. But in preparing for
which are still too often in conflict with
must become full partners in America's or
ours. So, let us take the new openness seri-
this trip, I was struck by something I came
portunity society.
across from a Chinese writer. He was speak-
ously. But let's also be realistic. And let's
ing of his country, decades ago, but his
To the families of America watching to
always be strong.
night in your living rooms, hold fast to you
There are some pressing issues we must
words speak to each of us in America to-
dreams because ultimately America's futur
address. I will vigorously pursue the Strate-
night. "Today," he said, "we're afraid of the
rests in your hands.
gic Defense Initiative. The spread and even
simple words like 'goodness' and 'mercy'
and 'kindness.' My friends, if we're to suc-
And to my friends in this Chamber, I asl
use of sophisticated weaponry threatens
global security as never before. Chemical
ceed as a nation, we must rediscover those
your cooperation to keep America growing
while cutting the deficit. That's only fair to
weapons must be banned from the face of
words.
those who now have no vote: the genera
the Earth, never to be used again. And
In just 3 days, we mark the birthday of
tions to come. Let them look back and say
look, this won't be easy. Verification-ex-
Abraham Lincoln, the man who saved our
that we had the foresight to understand
traordinarily difficult. But civilization and
Union and gave new meaning to the word
that a time of peace and prosperity is no
human decency demand that we try. And
"opportunity." Lincoln once said: "I hold
the time to rest but a time to press forward
it
is
his
duty
to
im-
Weekly Compilation of
Presidential
Documents
Monday, February 20, 1989
Volume 25-Number 7
Pages 187-216
111 RESEARCH
Pres. Documents
Feb. 16 / Administration of George Bush, 1989
Chairman of the Fed, for whom we all have
The President. Ann [Ann McDaniel,
rameters to
great respect. And maybe we'll get into a
Newsweek], and then Brit. And then I'll
into a consi
fight down the road. But I don't think it's at
quit.
them. And ]
hand, and I don't think Greenspan and I
The Oliver North Trial
a lot of nego
are far apart. And I think he would also
get all the 7
confirm that.
Q. It appears that the Oliver North trial
But I don't
will go forward next week now. Are you
monly held
NATO Unity
aware of secrets so damaging to our nation-
said it was t
Q. Mr. President, West Germany wants to
al security that might come out in that trial
Democratic
postpone the modernization of the shorter
that would be so damaging that you would
the Republi
range missiles. Obviously, this is not the
ask the Attorney General [Richard L.
efforts to }
American position. They want also to open
Thornburgh] to halt the prosecution?
there's no Va
negotiations with the Soviets on that. How
The President. I think the Attorney Gen-
But havin
do you respond to that? If you don't agree
eral knows everything I know, and I think
more detail
with that, are you concerned by the unity
he's handled it very well.
and ironed
of NATO on that?
Q. Are you concerned about the trial
them to sati
The President. I would respond to it this
going forward? Do you think national secu-
what they W
rity can be
And so, I'm
way: The Secretary of State is talking to all
the NATO leaders; he'll be back in town
The President. Not under the existing
getting toge
agreements.
down the rc
over this weekend. I will sit down here in
Q. Do you think the trial-
chance to €
this chair and talk to him about what he has
The President. I think Dick Thornburgh
way, it woul
found. In the meantime, I am inclined to
took a very difficult question and balanced
cuss it. So, it
feel that we are far closer to West Germany
interests and has worked out an agreement
would, and
than the public perceptions might be. And I
that hopefully is workable. But we'll see be-
reception.
have been in touch with Helmut Kohl
cause there are legitimate national security
I said ahe
[Chancellor, Federal Republic of Germany],
interests that he is obliged to protect. And
everybody 1
and there have been opportunities for him
he understands this, but he also understands
say this was
to express to me inordinate concerns on this
that the judicial system should be operative
bread. But f
question. And other German leaders have
and the trial should go forward. And I think
to point ou
been here recently, and the Secretary of
we'll just say that all parties have worked
look given
State's been there. So, I would use this op-
towards that end, and it looks like agree-
have genera
portunity to shoot down the concept that
ment has been reached.
ervations or
there are major divisions between ourselves
Yes, last one-Brit?
crats, thoug
and the Federal Republic on this question.
But I'm not worried about NATO unity.
The President's Budget Proposal
much, have
and some p
You always worry that you have your act
Q. Some congressional Democrats are
And so, I've
totally together, and that's one of the rea-
now saying, sir, that you have outlined and
tion to that,
sons I wanted these early consultations. And
gotten some considerable credit for a lot of
reception of
then, I think now, as a result of our Secre-
spending increases while leaving open the
Both of t]
tary of State's wonderful trip over there—
question of where cuts would be made, par-
and I say wonderful because he's touched a
ticularly in an area where a kind of net
won't say hu
had to accc
lot of bases and the cables are most encour-
freeze is being asked for. And they are
aging along the lines of NATO unity-that
saying that you really have been vague and
We've got a
having said that, that the mood is pretty
have left it to them to do the dirty work.
savings and
How do you react to that?
budget proj
good. I don't worry too much about divi-
The President. Slowly-[laughter]-and
everybody's
sions in NATO, and I do then feel that we
very carefully. I don't think that is the in-
way, with a
will be in a position with a united NATO to
formed opinion of the key leaders in Con-
gested is pe
move forward in consultation with the
gress today. And the reason I say that is I
food for th
Soviet Union. That's the next step, and we
think that Dick Darman [Chairman, Office
branch to b
have certain leadership responsibilities that
of Management and Budget] and Nick
we go into
all of us here are prepared to accept in that
Brady [Secretary of the Treasury] and our
want.
regard.
Chief of Staff, John Sununu, have all done a
And it get
Q. One last question-
good job in not only presenting broad pa-
omy. It's im
208
Administration of George Bush, 1989 / Feb. 16
n McDaniel,
rameters to the Congress but have gone
go forward soon. And so much of the econo-
And then I'll
into a considerable amount of detail with
my today is on perception as opposed to
them. And I would readily say, Yes, there's
reality. This recovery is real. Business is
a lot of negotiation that needs to be done to
good. The insured deposits of depositors in
get all the T's crossed and every I's dotted.
savings and loan and banks are solid. Dollar
er North trial
But I don't think, Brit, that that's a com-
ow. Are you
monly held view of the leadership. But if I
good, strong. But there are some percep-
tions out there that can best be turned
:o our nation-
said it was the commonly held view of the
Democratic leadership-I know it's not of
around by a quick, or relatively quick, reso-
it in that trial
lution of the budget question. It's the firm
at you would
the Republican-then we will redouble our
projecting down of the deficit that will
[Richard L.
efforts to be sure they understand that
result in lower interest rates which will
ution?
there's no validity to that.
guarantee continuation of this, the longest
ttorney Gen-
But having said that, yes, there's a lot
expansion in our history, and continue ex-
and I think
more detail that has to be hammered out
pansion at lower rates of interest.
and ironed out, and we will work with
out the trial
them to satisfy their interest and to find out
So, I'm not euphorically optimistic. I'm
national secu-
certainly not pessimistic. And I think we're
what they want to do. It's a two-way street.
And so, I'm going to start working here,
off to a pretty good start. And I credit not
just the Republican leaders on the Hill but
the existing
getting together meetings with the leaders
down the road fairly soon, and we'll have a
the spirit that the Democratic leaders have
chance to explore that. If some feel that
demonstrated. And I've been very pleased
Thornburgh
way, it would be a good opportunity to dis-
with it. And I've had an opportunity to tell
them that.
and balanced
cuss it. So, it's going better than I thought it
n agreement
would, and I'm pleased generally with the
Gun Control
we'll see be-
reception.
Q. Mr. President, even though there's
onal security
I said ahead of time that I didn't expect
been a cutoff, there is something called
protect. And
everybody would jump up and down and
understands
guns that is so rampant in this country
say this was the greatest thing since sliced
be operative
The President. Helen, it's been a great
bread. But for the most part, I think it's fair
And I think
pleasure. The last question
to point out there has been a responsible
have worked
look given this budget. The Republicans
Q. Why won't you answer the question,
S like agree-
have generally been enthusiastic, some res-
because this is one of the most clearly
ervations on the part of some. The Demo-
Mr. Fitzwater. Thank you.
crats, though not endorsing it. quite as
The President. What was your question?
zl
much, have seen some positive direction
Q. The question is: Are you going to exert
and some positive objectives in that budget.
any leadership in trying to forestall
mocrats are
And so, I've been pleased with the recep-
these-
outlined and
tion to that, and I've been pleased with the
The President. Do you know that there
t for a lot of
reception of the savings and loan.
are laws on the book outlining the import
ng open the
e made, par-
Both of these two were major, major-I
of AK-47's-automatic-
kind of net
won't say hurdles-but major things that we
Q. No, I didn't.
nd they are
had to accomplish, and I think we have.
The President. Well, see, there's a fact.
n vague and
We've got a good proposal out there on the
So, where does that lead you? You already
dirty work.
savings and loan, and we've got a sound
had laws that prohibit the import of fully
budget proposal that is not meeting with
automated AK-47's. That law's on the
ughter]-and
everybody's acceptance and-or put it this
books. So, are we talking about law enforce-
at is the in-
way, with anybody saying what we've sug-
ment? Are we talking about—
ders in Con-
gested is perfect. But there's enough solid
say that is I
food for thought there for the executive
Q. We're talking about semi-automatic
branch to be in a very sound position when
AK-47's, sir. We're talking about semi-auto-
rman, Office
matic guns.
1 and Nick
we go into an open negotiation that we
want.
The President. What do you mean by
iry] and our
semi?
ve all done a
And it gets right back to the overall econ-
Q. I mean no cocking, pull the trigger,
ig broad pa-
omy. It's important that we go forward and
the gun fires each time I pull the trigger.
209
Weekly Compilation of
Presidential
Docume
111
RESEARCH
Pres. Documents
Monday, February 13, 1989
Volume 25-Number 6
Pages 159-186
and he got things done. And it is with the
she gives freely of her time to numerous
omy and also for our
volunteer efforts.
These goals cannot be achieved without
high hopes borne of that experience that
we in Illinois now proudly give him to the
Donald Simonds of the FAA [Federal
the energy and commitment of thousands
Aviation Administration]] is a full-perform-
of team players like those you have met
Nation. Ladies and gentlemen, the Secre-
ance-level air traffic controller and has been
today. I know already from my brief intro-
tary of Transportation.
Secretary of Transportation Skinner.
actively involved in the recruitment of mi-
duction to this Department that this team is
Thank you, Mr. President, for your kind
nority candidates for that critical job.
ready, willing, and able to do this important
Anthony A. Schiavone, Superintendent of
job. The American people have selected
words and for making me part of your
the James River Reserve Fleet at the Mari-
you as their President, and you have asked
team. I want to personally acknowledge all
time Administration, maintains custody of
me to be your wing man. I am humbled by
my friends here, especially Barbara Bush,
approximately 125 oceangoing merchant-
your offer. I accept, and I am ready to roll
my good friend for many years; my family,
type vessels that are on ready reserve for
up my sleeves and get the job done.
my mother and my brother; the Governor;
national defense purposes.
Thank you very much.
my good friend Judge Flaum; and all of you.
Susan Hedgepeth, Chief of the Exemp-
I wouldn't be here if it weren't for your
tion Branch in the Office of Hazardous Ma-
Note: The President spoke at 2:42 p.m. in
efforts, and I know it.
terials Transportation, develops special re-
the Federal Aviation Administration audi-
Mr. President, the Department of Trans-
quirements for the transportation of hazard-
torium. Secretary Skinner was sworn in by
portation's team is, in fact, made up of
ous materials.
U.S. District Judge Joel M. Flaum.
many members. Each one plays an impor-
Sondra F. Talbert, of the Federal Railroad
tant role. I have asked some of these out-
Administration, moved into the Depart-
standing members of that team to join us,
ment's Upward Mobility Training Program
from each of our units, and I would like to
in 1975 and is the first female inspector at
introduce them to you now. They're on the
the Interstate Commerce Commission in
The President's News Conference
left. And maybe to break a little protoco
he Federal Railroad Administration.
February 6, 1989
here, they can-which I think I'm allowe
United States Coast Guard Petty Officer
Savings and Loan Crisis
to do, at least at my swearing-in ceremo
Kelly M. Mogk, was recently awarded the
ny-I'm going to ask them to stand forward
Coast Guard Air Medal for heroic achieve-
The President. Well, for the more than
a little bit. Maybe, Mr. President, you could
ment in aerial flight while serving as a heli-
half a century, the U.S. has operated a de-
shake their hands.
copter rescue swimmer on January 2, 1989.
posit insurance program that provides
Muriel Clarke. Muriel is the financial spe-
Let's give these outstanding employees a
direct government protection to the savings
cialist for the Urban Mass Transportation
round of applause. [Applause]
of our citizens. This program has enabled
Administration's New York Regional Office.
Mr. President, these individuals' achieve-
tens of millions of Americans to save with
She has won many awards for her perform-
ments reflect the spirit of this Department.
confidence. In all the time since creation of
ance in government and has been involved
They are our unsung heroes, the dedicated
the deposit insurance, savers have not lost
in voluntary community efforts for over 40
public servants who serve the American
$1 of insured deposits, and I am deter-
years.
traveler, the pilot, the truck driver, the
mined that they never will.
Frank J. Mammano, a 29-year veteran in
boater, and the commuter.
Deposit insurance has always been in-
the Federal Highway Administration, has
The Department's team faces many chal-
tended to be self-funded. And this means
been a leader in the development of Path-
lenges. We must be in the forefront in the
that the banks, the savings and loans, and
finder, a cooperative effort by the Federal
fight against terrorism. We must do every-
credit unions that are insured pay a small
Highway Administration, the California De-
thing we can to stop the flow of drugs into
amount of their assets each year into a fund
partment of Transportation, and General
this country. We must keep our aviation
that's used to protect depositors. In every
Motors that applies advanced technology to
system both safe and competitive. And we
case, these funds are spent to protect the
solve metropolitan area congestion prob-
must maintain our significant and important
depositors, not the institutions that fail.
lems.
presence in the maritime industry. We
For the last 20 years, conditions in our
Romell Cooks of the National Highway
must also continue to build and maintain
financial markets have grown steadily more
Traffic Safety Administration has energized
our infrastructure. And I want to acknowl-
complex, and a portion of the savings and
a network of health professionals to act as
edge-as I look on the next step-are Con-
loan industry has encountered steadily
allies with government in the safety belt
gressman Martin, are Congressman Mineta,
growing problems. These financial difficul-
Congressman Coughlin. We must work with
ties have led to a continuous erosion of the
usage and anti-drunk-driving campaigns.
Barbara Schroeder, one of the two female
Congress, and I will work with Congress to
strength of the Federal Savings and Loan
wage-grade employees at the St. Lawrence
develop a visionary and comprehensive
Insurance Corporation, FSLIC. Economic
Seaway Development Corporation. In a
transportation policy for the 21st century, a
conditions have played a major role in this
163
Feb. 6 / Administration of George Bush, 1989
situation. However, unconscionable risktak-
tice Department by approximately $50 mil-
has stood beh
ing, fraud, and outright criminality have
lion to enable it to create a nationwide pro-
posits before,
also been factors. Because of the accumula-
gram to seek out and punish those that
at all times i
tion of losses at hundreds of these thrift
have committed wrongdoing in the man-
deposit will be
institutions, additional resources must be
agement of these failed institutions. These
credit of the
devoted to cleaning up this problem. We
funds will result in almost doubling the per-
which means
intend to restore our entire deposit insur-
tected.
sonnel devoted to the apprehension and
ance system to complete health.
For the futt
prosecution of individuals committing fraud
While the issues are complex and the dif-
in our financial markets.
safe, sound, ai
ficulties manifold, we will make the hard
However, int
As you can see, these proposals are based
choices, not run from them. We will see
share an equa
upon several overriding principles. First, I
that the guarantee to depositors is forever
our financial I
will not support any new fee on depositors.
honored. And we will see to it that the
absolute prere
Second, we should preserve the overall
system is reformed comprehensively so that
to the public
Federal budget structure and not allow the
the situation is not repeated again. To do
important ing
misdeeds and the wrongdoings of savings
this, I am today announcing a comprehen-
I've detern
and loan executives and the inadequacy of
sive and wide-ranging set of proposals. The
squarely and t
their regulation to significantly alter our
Secretary of the Treasury, Nicholas Brady,
ting it behind
will describe these proposals to you in detail
overall budget priorities. And third, I have
resources of
in a few minutes. However, I think it's im-
concluded that this proposal, if promptly
brought to be
portant to summarize some of the major
enacted, will enable our system to prevent
lem. I have p
points.
any repetition of this situation. And fourth,
ship of Congr
The proposals include four major ele-
I have decided to attack this problem head-
tration will W
ments. First, currently insolvent savings in-
on with every available resource of our gov-
gress as the lo
stitutions will be placed under the joint
ernment because it is a national problem. I
in a few days
management of the FDIC [Federal Deposit
have directed that the combined resource
ne Congress
Insurance Corporation] and FSLIC pursu-
of our Federal agencies be brought togeti
fort to resolv
ant to existing law. This will enable us to
er in a team effort to resolve the problem.
financial syste
control future risktaking and to begin re-
And fifth, I believe that banks and thrifts
without the de
ducing ongoing losses. Second, the regula-
should pay the real cost of providing the
I welcome
tory mechanism will be substantially over-
deposit insurance protection. The price the
here on this I
hauled to enable it to more effectively limit
FDIC charges banks for their insurance has
says a lot abou
risktaking. The FDIC would become the in-
not been increased since 1935. We propose
And now I pr
surance agency for both banks and thrifts
to increase the bank insurance premium by
tions. On the
under this system, although there's no com-
less than 7 cents per $100 of insurance pro-
to these peop
mingling of funds. The insurer will have the
tection that they receive. Every penny col-
turn this over
authority to set minimum standards for cap-
lected would be used to strengthen the
we start with
ital and accounting. Uniform disclosure
FDIC so that the taxpayers will not be
Press Interna
standards will also be implemented. The
called on to rescue it a few years from now.
ence Hunt, A
chartering agency for thrifts would come
And I make you a solemn pledge that we
going.
under the general oversight of the Secre-
will make every effort to recover assets di-
Q. Mr. Pre
tary of the Treasury. Third, we will create a
verted from these institutions and to place
that the extra
financing corporation to issue $50 billion in
behind bars those who have caused losses
and so forth-
bonds to finance the cost of resolving failed
through criminal behavior. Let those who
depositors and
institutions, which will supplement approxi-
would take advantage of the public trust
your responsil
mately $40 billion that has already been
and put at risk the savings of American
the Reagan-B
spent. All of the principal of these bonds
families anticipate that we will seek them
business and t
and a portion of the interest on them will
out, pursue them, and demand the most
The Preside
be paid from industry sources. However,
severe penalties.
not guarantee
the balance would be paid from on-budget
In closing, I want to just say a word to the
wouldn't happ
outlays of general revenues. Hopefully,
small savers of America. Across this great
what the in
some of these revenues will be recovered in
land, families and individuals work and
there is enoug
the future through sale of assets and recov-
save, and we hope to encourage even great-
this together t
ery of funds from the wrongdoers. Fourth,
er rates of savings to promote a brighter
I can't equate
we plan to increase the budget of the Jus-
future for our children. Your government
go into any I
164
Administration of George Bush, 1989 / Feb. 6
mately $50 mil-
has stood behind the safety of insured de-
that we've got to solve this problem and
nationwide pro-
posits before, it does today, and it will do so
we're on the path to doing that.
nish those that
at all times in the future. Every insured
deposit will be backed by the full faith and
Federal Pay Raise
g in the man-
titutions. These
credit of the United States of America,
Q. Mr. President, the House votes tomor-
publing the per-
which means that it will be absolutely pro-
row on that controversial pay raise plan,
prehension and
tected.
and the Senate has already voted against it.
mmitting fraud
For the future, we will seek to achieve a
Would you sign a bill that vetoes the pay
safe, sound, and profitable banking system.
raise not only for the Members of Congress
bosals are based
However, integrity and prudence must
but also for Federal judges and other high
nciples. First, I
share an equal position with competition in
officials in the government?
our financial markets. Clean markets are an
e on depositors.
The President. I've said I support it.
ve the overall
absolute prerequisite to a free economy and
d not állow the
to the public confidence that is its most
Savings and Loan Crisis
Q. Mr. President, there is a feeling that
ings of savings
important ingredient.
inadequacy of
I've determined to face this problem
part of this problem is attributable to de-
antly alter our
squarely and to ask for your support in put-
regulation of the financial industry. In ret-
d third, I have
ting it behind us. I have ordered that the
rospect, do you think that deregulation
resources of the executive branch be
might have gone too far in the last 10 years
al, if promptly
brought to bear on cleaning up this prob-
or so? And in the future, is your marching
tem to prevent
lem. I have personally met with the leader-
order to your administration to be a little
on. And fourth,
ship of Congress on this issue. My adminis-
more careful in regulating this particular
problem head-
tration will work cooperatively with Con-
industry?
irce of our gov-
gress as the legislation that we will submit
The President. Jerry [Gerald Boyd, New
onal problem. I
in a few days' time is considered. I call on
York Times], I don't know the answer. I'd
bined resource
he Congress to join me in a determined
be most interested to know what our ex-
brought toget]
ffort to resolve this threat to the American
perts here feel about how much of the
e the problem.
financial system permanently, and to do so
problem could be attributed to deregula-
nks and thrifts
without the delay.
tion. I just don't know the answer to your
providing the
I welcome the leaders that are with me
question, so I can't reply.
The price the
here on this platform. I think their support
r insurance has
says a lot about the efficacy of our proposal.
Government Ethics
35. We propose
And now I propose to take just a few ques-
Q. Mr. President, you have placed consid-
ce premium by
tions. On the technical aspects, I will defer
erable stress in these early days of your
insurance pro-
to these people, and then I'll be glad to
Presidency on ethics and propriety, yet in
ery penny col-
turn this over to Secretary Brady. I believe
recent days there has been controversy on
strengthen the
we start with Helen [Helen Thomas, United
Capitol Hill concerning the propriety of
'S will not be
Press International] and then Terry [Ter-
some of Tower's [Secretary of Defense-des-
ears from now.
ence Hunt, Associated Press], and then get
ignate] alleged behavior; questions raised
pledge that we
going.
over the weekend about the financial in-
cover assets di-
Q. Mr. President, are you guaranteeing
vestments on the private funds of the man
IS and to place
that the extra costs-premiums, increases,
in charge of ethics, your counsel, Boyden
: caused losses
and so forth-will not be passed on to the
Gray; and other questions involving mem-
Let those who
depositors and taxpayers? And also, what is
bers of the administration, or members-to-
e public trust
your responsibility in this debacle-I mean,
be of the administration. And I wonder, sir,
; of American
the Reagan-Bush zeal for deregulation of
what's happened here? Is it too harsh be-
will seek them
business and banking?
havior on our part, too lax behavior on your
and the most
The President. On the first place, we're
part? What?
not guaranteeing that. I would hope that
The President. I don't think anything has
a word to the
wouldn't happen, but there is no guarantee
happened. I learned long ago in public life
ross this great
what the institutions will do. Secondly,
not to make judgments based on allegations.
als work and
there is enough to be said for everybody in
But having said that, I want to have my
ge even great-
this together trying to solve this problem, so
administration aspire to the highest possible
ote a brighter
I can't equate any personal-not inclined to
ethical standards. And we have appointed a
r government
go into any personal blame, simply to say
commission to go out there now and try to
165
Feb. 6 / Administration of George Bush, 1989
detail what these standards should be. And
its endorsement to the Senator, particularly
Q. Mr. Presio
we are in a new era on these matters. Mat-
after all of these allegations, that there is
the deposit fee
ters that might have been approved and
any danger at all of damage to his credibil-
given us has ar
looked at one way may have a different
ity or his ability to do the job.
may be paid 1
perception today. And so, what I want to do
Q. Mr. President, there are new and sub-
large amount 0
is finalize our standards and then urge ev-
erybody in all branches of government to
stantive allegations that Senator Tower lost
the same thing
aspire to those standards. But I do think,
control over the highly classified security
are still going 1
this?
Brit [Brit Hume, ABC News], that it's fair
documents and computer disks that were
The Presiden
that we not reach judgment on Senate
used in Geneva under his watch. If those
on, there is no
hearings before the Senate hearings are
allegations prove to be founded, would you
to the consume
concluded, because it's very hard to filter
then withdraw his nomination?
won't be passe
out fact from fiction, spurious allegations
The President. I would not answer hypo-
has been there
from fact. And I am not about to make a
thetical questions of that nature. You're tell-
argue whether
judgment based on a sensationalized news-
ing me something that I haven't heard
just don't kno
paper story. I'm simply not going to do
before. And we did have access to FBI re-
through in th
that. That wouldn't be fair, and I'm not sure
ports. So, if this matter is now before the
without pain
how ethical it would be. So, let's wait and
Congress, let them investigate it. But I can't
problem of this
see this-you're referring to the Tower
go into a hypothesis. All I would be doing
Q. Mr. Presio
matter up there. That matter has been
would be adding to, I think, speculation
Members of C
looked at by the FBI. The committee now
that is not helpful at this juncture.
and dinners
has that. They have the responsibility to
Q. But, sir, will you pursue these allega-
over the past C
make determinations, and I'll be very inter-
tions in the executive branch? Are you
of them, you ]
ested to see what they say. But I am not
going to track what the FBI is looking into?
this problem.
going to jump to conclusions based on sto-
Are you going to personally surveil these
reception that
ries that may or may not have any validity
kinds of allegations yourself?
[ill and of the
at all.
The President. Every rumor and every
et it passed?
The Presider
Secretary of Defense-Designate John Tower
innuendo? No. But if there's some substan-
Q. Mr. President, even if, as your spokes-
tive allegation of this nature, of course, it
job, but I've }
would concern me.
the spirit epit
man says you do, you continue to back Sen-
Congress, part
ator Tower for the position, there are those
Savings and Loan Crisis
ship meeting
you've heard who say that the best thing he
could do for you is to step aside because
Q. Mr. President, back to S&L's if we
into every det
even if confirmed he then would become
might. Millions of-[laughter|-million: of
still being forr
their views. I
damaged goods, weaker in administering a
Americans save alternatively. That is they
save in mutual funds, stocks, and that kind
Seidman [FDI
very, very tough job on your behalf. How
on about what
do you respond to that suggestion?
of thing. As I read it, you've now outlined a
plan that places a lot of the S&L bailout on
plan will be. B
The President. Well, I think people would
not want a person to step aside in a rumor,
the backs of the general treasury. How fair
Congress to Sa
particularly if the rumor is baseless. And
is that?
me that they a
this plan, althc
the process is taking a little longer than I
The President. We've got a major prob-
I'm going to
would like. And yet I think the Senate has
lem, and something has to be done. And
then turn th:
got to do what they're doing: looking at
this is the fairest system that the best minds
here, who are
these allegations very carefully. But you
in this administration can come up with.
detail as you W
know, as I said here at this same podium a
And so, I again would ask you to ask the
while back, the American people are basi-
specifics of the treasury burden to the
Secretary of L
cally fair. And if these allegations prove to
Chairman of the Federal Reserve [Alan
be allegations without fact behind them, I
Q. Mr. Pre
Greenspan] or the Secretary of the Treas-
surround Tow
think the people are going to say: Wait a
ury [Nicholas F. Brady]. Ask how they see
minute. What went on here? How come it
the theme, S
that. But look, as I've said, there is no easy
was all this? We read this one day, and then
tion-allegatic
answer to this. All I want to do is make a
kind of a puff of smoke the next. And so, I
money from
sound proposal, work to put it into effect,
don't think-in your substantive question,
of thing. Have
and have that proposal such that the coun-
is still the non
though-that if the Senate committee gives
try won't have to face this problem again.
166
Administration of George Bush, 1989 / Feb. 6
or, particularly
Q. Mr. President, you said you dropped
us at this time a full-hearted endorsement
that there is
the deposit fee idea, but this plan you've
of Tower?
to his credibil-
given us has an increase in premiums that
The President. Yes, I can, and I will right
may be paid by consumers, as well as a
now because some of the very same allega-
new and sub-
large amount of taxpayers' funds. Isn't that
tions that were floated that long ago appar-
tor Tower lost
the same thing: Consumers and taxpayers
ently have been looked at and examined by
sified security
are still going to have to pay the price for
the best possible examiners-and I'm talk-
this?
sks that were
ing about the FBI-and found to be
The President. Well, as I indicated earlier
vatch. If those
groundless. So, therefore, I'm not about to
on, there is no guarantee of passing this on
ed, would you
change my view. If somebody comes up
to the consumer, nor is there a guarantee it
1?
with facts, I hope I'm not narrowminded
won't be passed on. But this arrangement
enough that I wouldn't take a look. But I
answer hypo-
has been there for 50 years, and you might
am not going to deal in the kinds of rumors
re. You're tell-
argue whether it's been passed on or not. I
that I've seen reported and then knocked
haven't heard
just don't know. I haven't seen the flow-
down and then reported and then knocked
ess to FBI re-
through in the industry. But nothing is
down.
ow before the
without pain when you come to solve a
One-two to go.
it. But I can't
problem of this magnitude.
Central America
ould be doing
Q. Mr. President, you've talked to several
k, speculation
Members of Congress in various receptions
Q. There have been hints that Gorbachev
ture.
and dinners and personal conversations
may propose steps to diffuse the situation in
e these allega-
over the past couple of weeks, and in many
Central America. I wonder if you see the
ich? Are you
of them, you have discussed your plan for
possibility of superpower deals in Central
S looking into?
this problem. What is your feeling of the
America, and, if so, if you could suggest
surveil these
reception that it's going to get on Capitol
what would be acceptable for you?
Iill and of the selling job that awaits you to
The President. I don't know about a deal,
for and every
et it passed?
but I can see a possibility of cooperation in
some substan-
The President. We may have a big selling
Central America because I would like the
;, of course, it
job, but I've been encouraged so far with
Soviets to understand that we have very
the spirit epitomized by the Members of
special interests in this hemisphere, particu-
Congress, particularly at the joint leader-
larly in Central America, and that our com-
ship meeting the other day. We didn't go
mitment to democracy and to freedom and
S&L's if we
into every detail of this. These plans were
free elections and these principles is un-
r]-millions of
still being formulated, and I wanted to get
shakeable. And I don't think they really
That is they
their views. I was encouraged by what Bill
have substantive interests in this part of the
and that kind
Seidman [FDIC Chairman] told me earlier
world, certainly none that rival ours. So, I
now outlined a
on about what he felt the receptivity of the
would like to think they would understand
&L bailout on
plan will be. But I don't think it's fair to the
that. And there are so many areas where
sury. How fair
Congress to say that they have signaled to
we could demonstrate a new spirit of coop-
me that they are going to be enthusiastic on
eration, and this would clearly be one of
this plan, although I hope they are.
them. So, I'd like to think that is the way
a major prob-
be done. And
I'm going to take about three more and
that the matter would be approached by
the best minds
then turn this over to these gentlemen
the Soviets.
here, who are prepared to go into as much
Yes, followup?
ome up with.
detail as you want.
Q. If I could follow up and ask you
ou to ask the
urden to the
whether you'd be willing to include aban-
Secretary of Defense-Designate John Tower
donment of aid to the contras as part of
Reserve [Alan
Q. Mr. President, these allegations that
such an understanding?
of the Treas-
surround Tower now, at least variations on
The President. I wouldn't make a deal on
how they see
the theme, surfaced early in the transi-
that with the Soviets, nor would that come
ere is no easy
tion-allegations of womanizing and taking
up. I don't believe we'd ever have a-I
do is make a
money from defense contractors, that sort
can't see a situation of that nature arising,
it into effect,
of thing. Have you satisfied yourself that he
knowing as I do what will be negotiated
that the coun-
is still the nominee you want? Can you give
and discussed with the-so I think that's so
problem again.
167
Feb. 6 / Administration of George Bush, 1989
hypothetical as to not even be a possibility
which I think you are, that matter was re-
we've got to try
of any kind.
viewed every single year by the Office of
high as possible.
Yes, Charles [Charles Bierbauer, Cable
Government Ethics, and he was deemed in
the right thing il
Network News]? And then I do have to run.
compliance every single year. But now
think Boyden C
Savings and Loan Crisis
we've got a new ballgame here. He's the
every year in as
General Counsel here in the White House,
reviewing his o
Q. Mr. President, we still don't know
and I'm the President. And I've set out rhe-
family company
what the taxpayers' burden is in here out of
torically the highest possible standards, and
now taking anot
this $40 billion. It says first from S&L funds
we're trying to back that up by findings
tion in this case.
and the shortfall from Treasury funds. How
from this Commission. And so, I do think
these individuals
big is it; and have you, in going through
that we've got to be very careful about per-
and we've got to
your budget, had to knock out some things
ceptions of impropriety when it comes to
to try to codify t
to pay for this?
conflict of interest-not rumors or innuen-
Q. Sir, by foll
The President. We've had to knock out a
dos of one sort or another. I don't think I
campaign very
lot of things on the overall budget for a lot
should deal in those things. But when it
would not take
of different reasons. But I'd like to leave
comes to perceived conflicts of interest, I'd
why they need
this for Dick [Richard G. Darman, Director
like our people to bend over backwards.
stand that?
of the Office of Management and Budget],
And I think that's what has happened in
The President
for the questioning, to give the specific
amounts. It is shared, as I've indicated, and
both the question of Lou Sullivan [Secretary
saying it was
he can give you the amounts that are in-
of Health and Human Services-designate].
family company
All he did was ask: Am I entitled to contin-
ing that and say
volved.
ue these arrangements with this small uni-
ferent perceptic
Listen, thank you all very much, and now
versity? And all Boyden did, in my view
era, so let's ber
I'm going to turn this over to Secretary
Brady. And then in order, I guess they'll
now, is to try to go a step beyond what the
we possibly ca
refer to each of these others.
Government Ethics Office has said to avoid
that.
Q. Mr. President, one more word for the
the perception of impropriety. So, I think
Thank you all
Q. What abc
small-
might be different now. I have to approach
Q.
it differently as President. Not that you
President?
back here, Mr. President?
The President. What was that substantive
have lower standards. But I just think that,
The Presiden
again, this whole question of perception-
right there.
question? [Laughter]
Q. In the back-we didn't see you get
we've got to look at it very, very carefully.
back in this area.
But I want to be fair. I do not want to
Note: The Pres
The President. We didn't get that far
have the loudest charge, no matter how ir-
began at 4:10 F
back, no. But if there's been an egregious
responsible, be that that sets the standards.
Executive Offic
offense to those in the back benches, I will
We've got to achieve more objective stand-
take one parting question. And inasmuch as
ards. And that's why I'm putting a lot of
you raised it, fire away.
faith in the-hope to put a lot of faith in the
findings of Judge Wilkey and former Attor-
Government Ethics
Statement by
ney General Griffin Bell. And they will be
on the West (
Q. Thank you very much, sir. Back on the
looking at all these matters in terms of re-
Monsanto Ele
ethics issue, a couple of-
ality, and then, to some degree I'm sure, in
Company
The President. Mindful that the last ques-
terms of perception. So, what might be
February 7, 1.
tion always does get you in great trouble—
legal and might be perfectly sound ethically
[laughter]-go ahead.
might have to be altered, given this new
The Presider
Q. One of your perspective nominees and
approach because of perception. It's a deli-
tervening in 1
your Counsel have just recently changed
cate one.
Monsanto Ele
their minds on matters that would have vio-
I don't want to have the standards set in
(MEMC) by H
lated the ethics rules under the Reagan ad-
such an irresponsible way that good people
MEMC manuf:
ministration. Did you have difficulty in get-
just throw up their hands and say: Look,
in making semi
ting the word out that times would be
who needs that kind of grief, who needs it?
The Preside
tougher under your administration?
Why should I have to give up all my what-
results of the i
The President. No. I don't think so. For
ever it is-a health plan from the XYZ com-
tee on Foreig
example, if you're referring to the Boyden
pany. And yet on the other hand, we're in a
States (CFIUS)
Gray [Counsel to the President] matter,
different time now. We're in a time when
tary Nicholas I
168
Building a Better america
3. ENHANCING PARENTAL CHOICE IN CHILD CARE
SUMMARY
Child care is one of the most important issues facing the Nation. Business, labor, nonprofit
organizations, and State and local governments all can play important roles in helping families
meet the challenges of a changing America. So, too, can the Federal Government.
President Bush is dedicated to a bold new approach to child care which empowers parents,
especially low-income parents, to make the critical decisions about their children's care. Meet-
ing the competing demands of work and family life-often a trying task under the best of
circumstances-can be especially difficult for low-income families with young children.
Federal child care policies should enable families-not the Government-to determine their
child care arrangements for themselves. In this way, children, their parents and the Nation as
a whole will benefit. The children will benefit from being cared for in the way that their parents
believe best suits their needs; and parents, having chosen the most appropriate child care
arrangement for the family, will lead more fulfilling lives. The result for the Nation will be a
more productive workforce and a generation of children raised in an environment that reflects
strong family values.
"My philosophy with respect to child care is to put choice in the hands of parents, and
not in the hands of the State.
I will build a policy around parental choice. Particularly
we must find a way to put a greater range of choices in the hands of low-income parents-
because they face the greatest difficulty in meeting the demands of work and family."
George Bush
The Federal Government currently provides over $5.7 billion in support for child care and
an additional $1.2 billion for the Head Start early childhood development program. The largest
sources of Federal support for child care now are the Dependent Care Tax Credit, the Title XX
Social Services Block Grant, and the Child Care Food program. Significant additional funding
for child care is also provided under the recently enacted welfare reform, the Family Support
Act. Under that Act, welfare recipients will be provided with child care while they participate
in employment and training activities, and those who leave the welfare rolls to work will be
provided with 12 months of free or low cost child care to ease the transition from welfare to
work. The budget reflects current law funding for Title XX, the Child Care Food program, and
the child care components of the Family Support Act.
The President's budget also reflects four child care initiatives: a new refundable Child Tax
Credit of up to $1,000 per child under age four in low-income working families, a proposal to
make the current Child and Dependent Care Tax Credit refundable, a $250 million expansion
in Head Start, and a study of liability insurance by the Department of Labor. These initiatives
reflect the President's commitment to enhancing parental choice in child care and the special
obligation to first provide additional assistance to families most in need. They are described
in the pages that follow.
101
PROPOSED CHANGE
(In millions of dollars)
Dollar
Percent
1989
1990
Change
Change
Tax Credits:
Revenue Effect
-
-5
-5
n.a.
Outlays*
-
182
182
n.a.
Head Start:
Budget Authority
1,235
1,485
+250
+20.2
Outlays
1,202
1,351
+149
+12.4
*
The outlays result from the refundable feature of the tax credit.
FUNDING SUMMARY
(In millions of dollars)
1989
1990
1991
1992
1993
Tax Credits:
Revenue Effect
-
-5
-46
-48
-52
Outlays*
-
182
1,847
2,163
2,430
Head Start:
Budget Authority
1,235
1,485
1,534
1,577
1,613
Outlays
1,202
1,351
1,485
1,546
1,589
*
The outlays result from the refundable feature of the tax credit.
a. Expanding Child Care Assistance to Low-Income Families Through
Tax Code Changes
OVERVIEW
There is no such thing as "one size fits all" child care. In balancing the competing demands
of work and family life, parents need choices which allow them to make the child care arrange-
ments that best meet their families' needs.
Low-income families can be especially hard-pressed in making the child care arrangements
they prefer. The President is committed to ensuring that these families benefit first from
increased Federal support for child care.
"Parents work during the day and at night, swing shifts and part time. Some parents
want caregivers to be relatives or neighbors or at school or at church. Or they want only
after school care or care for special children. They want caregivers to share their values.
/ will build a policy around parental choice."
George Bush
102
PRINCIPLES
The President is committed to helping families meet their child care needs.
Additional assistance should first be provided to low-income families with young children.
New initiatives will help these families obtain the care that they believe best suits their
children's needs.
The President believes that Federal assistance should not discriminate among different
child care arrangements. Care by the parents themselves, by relatives or neighbors, at
religious institutions, at family day care homes, and at child care centers should all be
accommodated.
Federal policy should broaden rather than limit child care alternatives for parents and
children by avoiding Federal standards that restrict parental choice or raise costs. Parents
should continue to have the responsibility and prerogative to judge which child care
arrangements best serve their children's needs.
POLICIES
The President proposes a new tax credit of up to $1,000 for each child under age four in
low-income working families. This credit, available to families in which at least one parent
works, would be provided to very low-income families in tax year 1990 and expanded to in-
clude additional families in subsequent years. For each child under the age of four, families
could receive a credit equal to 14 percent of wages, with a maximum credit equal to $1,000
per child. In 1990, the credit would be phased out between $8,000 and $13,000 in income. This
phase-out range would increase to between $15,000 and $20,000 by 1994.
The credit would be refundable. That is, if the credit due exceeded a family's Federal in-
come tax liability, the difference would be paid to the family. Families would have the option
of receiving the refund in advance through a payment added to their paycheck.
The existing Dependent Care Tax Credit also would be modified. Under current law, parents
are allowed a credit for the child care costs incurred in order to obtain or maintain employ-
ment. The credit currently applies only to families with sufficient income to pay Federal in-
come taxes. This credit would be made refundable. Families that meet eligibility criteria for
both the Dependent Care Tax Credit and the new Child Credit could claim whichever credit
best suits their needs and circumstances for each child.
FUNDING SUMMARY
(In millions of dollars)
1989
1990
1991
1992
1993
Revenue Effect
n.a.
-5
-46
-48
-52
Outlays
n.a.
182
1,847
2,163
2,430
b. Expanding Head Start
OVERVIEW
Head Start helps poor families meet their child care needs, but it also does much more.
Through a comprehensive approach that provides educational, medical, nutritional, and social
103
services to children at risk of falling behind, it gives poor children a better start in life. With
its emphasis on parental and community involvement, Head Start also benefits poor parents
and affords concerned Americans the opportunity to devote time and effort to improving the
lives of some of our most vulnerable citizens. The President is committed to expanding enroll-
ment in Head Start.
"Give any American kid an equal place at the starting line, and just watch what that
kid can do. But too many kids are denied that equal chance, particularly if they are black
and poor. Head Start helps kids get that equal place at the starting line. It's a Federal
program that works. But it doesn't reach all the kids it should."
George Bush
PRINCIPLES
Head Start should serve more poor, four year old children.
Increasing enrollment in Head Start not only expands the range of child care choices
available to poor families, it represents an investment by Government, parents, and con-
cerned citizens in our Nation's most valuable asset: our children.
In a period of constrained resources, new Federal assistance must first be provided to
those most in need. The poor children and families eligible to participate in Head Start
are among the most needy.
POLICIES
The President's budget provides a $250 million increase for Head Start funding in 1990.
PROPOSED CHANGE
(In millions of dollars)
Dollar
Percent
1989
1990
Change
Change
Budget Authority
1,235
1,485
+250
+20.2
Outlays
1,202
1,351
+149
+12.4
These additional funds would be used to expand enrollment of poor, four year old children
in Head Start. Up to 95,000 additional four year olds would participate in the program, benefit-
ing from Head Start's comprehensive activities and increasing by a third the number of poor
children in this age group served.
104
FUNDING SUMMARY
(In millions of dollars)
1989
1990
1991
1992
1993
Budget Authority
1,235
1,485
1,534
1,577
1,613
Outlays
1,202
1,351
1,485
1,546
1,589
c. Examining Barriers to Liability Insurance
OVERVIEW
Employers in substantial numbers are finding that it is simply good business practice to
establish policies that help their employees meet their child care responsibilities. A recent
Department of Labor survey indicates that almost two-thirds of workplaces with 10 or more
employees help employees with child care. Flexible work schedules and leave policies, as well
as counseling, information and referral services, are the most common forms of assistance.
Employer-sponsored child care on or near the work site is relatively rare, offered by only a
little over two percent. There is concern that lack of access to liability insurance may be deter-
ring some employers from offering this form of care.
"I would encourage employer-sponsored child care, flexible work schedules and benefit
plans which allow workers to choose the benefits they need. Employers must demonstrate
more flexibility and sensitivity to family needs.
"Employers have a major role in helping parents find needed child care but / do not
believe in give-aways of taxpayer dollars to get business to recognize what it already knows:
that it must provide assistance for more and better child care. Workers demand it; pro-
ductivity demands it; a business' bottom line demands it."
George Bush
PRINCIPLES
Insurance regulation is predominantly a State responsibility, but federally sponsored
research can inform State policies and practices.
If market barriers are preventing employers from obtaining liability insurance so they
can provide child care at or near the worksite, strategies should be developed to facilitate
their removal.
POLICIES
The President has directed the Secretary of Labor to conduct a study to determine whether
market barriers or failures are preventing employers from obtaining liability insurance neces-
sary to provide child care on or near their employees' worksites.
The study will examine commercial liability insurance, self-insurance, State-facilitated
market assistance plans (centralized insurance information systems in which insurers volun-
105
tarily participate), joint underwriting agreements (under which States require insurers to
participate in providing insurance), and other arrangements relevant to this issue.
The Secretary will develop a timetable for the study which allows it to be completed no
later than the end of this year.
106
ine keagan кесоги
March 21, 1988
paper # 5
HOMELESS
"Four to six million homeless people
"
--- Rev. Jackson
Atlanta debate, 2/27/88
"What's going on here? This is the most affluent
nation on the face of this earth. We didn't have
a homeless problem eight or nine years ago. What's
happened is we have walked away from our commitment
to provide decent and affordable housing."
--- Gov. Dukakis
St. Petersburg Times, 1/9/88
Number of Homeless
Homelessness is a longstanding problem. In 1983, a National
Governors Association task force traced homelessness back
50 years, although it is likely the problem goes back even
further.
In 1984, the U.S. Department of Housing and Urban
Development estimated there were 250,000 to 350,000 homeless
nationwide on any given night.
In 1986, a Harvard University study confirmed the HUD
figure, estimating the number of homeless between 343,000
and 363,000.
Between two-thirds and three-fourths of the homeless are
men; 20 to 25 percent of the homeless are families ---
primarily single mothers with 1 or 2 children. Families
become homeless because of divorce, domestic violence or
other personal crises, or because they leave a "doubled up"
(multifamily) living arrangement. Most families tend to be
homeless for a shorter time than are single homeless.
Over 50 percent of the homeless have mental illness, alcohol
or drug abuse problems.
Federal Housing Programs -- The Real Story
Over the past eight years, the number of low-income families
being served by Federal housing programs has increased by
36 percent, from 4.2 million in FY 1980 to 5.7 million
in FY 1988.
Spending for those programs expanded 30 percent over the
same period (from $12.5 billion to $16.2 billion).
White House Office of Public Affairs
(202) 456-7170
To provide families the option of choosing where to live, the
Reagan Administration has begun emphasizing housing vouchers
to subsidize rental payments. Since FY 1985, more than
100, 000 families have used housing vouchers which are good
for a 5-year period, and can be renewed. For FY 1989, the
Administration has requested an additional 127,500 vouchers.
Other Reagan Administration Actions
President Reagan established an Interagency Council on the
Homeless to ensure that Federal and private sector
assistance is coordinated and effective.
In July 1987, President Reagan signed into law the McKinney
Act, which established several new programs for the
homeless. Federal agencies have acted swiftly to implement
the new law. For example, HUD allocated $165 million by
December 1987 to states, cities, and non-profit organizations
providing shelter to the homeless.
Over a two-year period, in FY 1987 and FY 1988, the Federal
Government provided more than $900 million in aid
specifically targeted to the homeless.
The President's FY 1989 budget proposes $390 million in aid
to the homeless, a 4.3 percent increase over the FY 1988
level ($374 million). Included in the President's proposal
are funds for emergency food and shelter programs; permanent
housing for the mentally ill and handicapped homeless; and
programs for runaway and homeless young people.
Federal agencies are addressing the needs of the homeless
through a variety of Federal programs.
--
The Federal Emergency Management Agency has provided over
$500 million for food and shelter operations since 1983.
Department of Agriculture provides assistance through
its food stamp program and has donated over 1.1 billion
pounds of surplus food to soup kitchens and shelters.
Health and Human Services provides funds for mental
health, alcohol and drug abuse services; provides
income support through AFDC and Supplemental Security
Income for the elderly poor.
Department of Defense provides bedding and other supplies
to shelters and provides buildings where available.
Bear in mind that the Federal Government does not operate
homeless shelters. Ninety-four percent of shelters for the
homeless are operated by non-profit, private organizations.
The remainder are run by city or county governments.
2. INVESTING IN PEOPLE: EDUCATION
SUMMARY
Building a better America requires a well-educated America. Greater educational achieve-
ment for all children promotes sustained economic growth, enhances the Nation's competitive
position in world markets, increases productivity and leads to higher incomes for everyone.
The Nation must invest in its young people, giving them the knowledge, skills, and values to
compete successfully in the marketplace and to build a better America.
"The challenge of the future is not just to make education more available, but to make
it more worthwhile.
I believe the best thing we can do is invest in our young people.
Education is critical to our future, both individually and as a nation. If we are to im-
prove our standard of living, protect and defend our democratic freedoms, and strengthen
our moral character as a nation, nothing is more important than education."
George Bush
Providing quality education is fundamentally a state and local responsibility. When it comes
to better schools, almost all of the wisdom, good answers, and money to pay the bills come
from outside Washington, D.C. Federal leadership and funding, however, can make a difference.
Several underlying principles govern the President's education policy and initiatives.
First, the Administration will reward excellence and success in education: Federal incen-
tives, in the form of public recognition and financial awards, will provide new catalysts for
educational achievement.
Second, the Administration will target Federal dollars to help those most in need-where
support can make a difference. Education is the key to opportunity; inadequate education denies
a child the chance to compete. Federal programs help States provide that chance.
Next, the Administration will promote choice and flexibility-for families, students, teachers,
and principals-to encourage competition and help provide the means and the incentives to
achieve educational excellence. This Administration is committed to the principle of more choice
at the local level-for students and parents to choose the schools that best meet students' needs;
for teachers to experiment with techniques and ideas to help students learn better. The
Administration will provide incentives to States to adopt flexible approaches to recruiting the
best qualified teachers for their classrooms and principals for their schools.
Finally, the Administration will work to assure that students are actually receiving the
highest quality education, by promoting greater accountability at all levels of the educational
system. This Administration is committed to objective measurement and reward of progress
toward quality education. The Nation invests annually more than $330 billion in education,
an enormous commitment. Federal, State, and local authorities must assure that the funds
they spend and the programs they manage accomplish their goals-as measured by student
learning and achievement.
49
BBA
The President proposes a selected group of carefully defined initiatives to support these
principles and to demonstrate his personal leadership of the national movement to improve
the quality of American education. These initiatives would: reward schools that make substan-
tial progress in educational achievement; reward excellent teachers; provide scholarships for
the best science and mathematics students; provide new funding for magnet schools to enhance
educational excellence; encourage States to broaden access to teacher and school principal
positions; provide more endowment matching funds for Historically Black Colleges and Univer-
sities; support more experimentation for achieving better educational results; and incorporate
policies and procedures for accountability into Federal programs.
PROPOSED CHANGE
(In millions of dollars)
Dollar
Percent
1989
1990
Change
Change
Budget Authority
-
411
+411
n.a.
Outlays
-
58
+58
n.a.
FUNDING SUMMARY
(In millions of dollars)
1989
1990
1991
1992
1993
Budget Authority
-
411
501
606
651
Outlays
-
58
345
492
593
a. Rewarding Successful Schools
OVERVIEW
Helping schools develop the skills and abilities of our children to their maximum poten-
tial is one of the Administration's major goals. In the highly decentralized world of American
education, some schools consistently reach this goal; others do so for some students, but leave
many others behind.
Achievable standards of excellence can and should be set for all students, for all teachers,
and for every school. Our children deserve no less; our economic future demands it.
Helping children develop their potential can present special challenges for schools with
large numbers or proportions of low-income children. The Federal Government provides bil-
lions annually for supplementary services for educationally disadvantaged children in these
schools.
50
The Federal Government should serve as a catalyst in this effort, providing to successful
schools the national recognition and financial rewards that clearly demonstrate the significance
of school improvement.
"We should demand more from students [by imposing] higher academic standards. We
should make sure students are learning what they should. We should demand more from
teachers. We should demand more from principals. We should demand more from parents.
In demanding more performance, we are providing more opportunity to all students, but
particularly to those who have the furthest to go-because the poor are not served by
meaningless diplomas."
George Bush
PRINCIPLES
Educating all students to their full potential should be a basic goal of all schools.
Demonstrated school-wide progress in achieving excellence deserves public recognition
and support.
Financial incentives can spur schools with especially difficult problems to significantly
improve their educational achievement.
POLICIES
The President will propose legislation and a 1990 appropriation of $250 million for a new
initiative to reward schools whose students demonstrate substantial educational progress. Fund-
ing for the initiative will increase each year until an annual funding level of $500 million is
reached.
PROPOSED CHANGE
(In millions of dollars)
Dollar
Percent
1989
1990
Change
Change
Budget Authority
-
250
+250
n.a.
Outlays
30
+30
n.a.
Guidelines will be established for the objective measurement of school improvement,
emphasizing improved educational performance, a safe and drug-free environment, and fewer
dropouts.
Elementary, secondary, and middle schools throughout the country will compete annually
within each State for recognition as Presidential Merit Schools. States will add to the nation-
al criteria specific selection standards that reflect the mix of students and educational condi-
tions within each State.
51
Certificates of Recognition and grants will be awarded, with special emphasis on schools
participating in the Federal compensatory education program ("Chapter 1"), and any others
that enroll substantial numbers or proportions of children from low-income families.
Criteria for Chapter 1 Merit Schools will take into account the Chapter 1 Program Im-
provement criteria set by each State.
Awards will be scaled to demonstrated improvement and school size.
A school that receives a cash award may use the money for any purpose that furthers its
educational programs. Support from other Federal, State or local sources may not be reduced
because of the award.
The Secretary of Education's Blue Ribbon School recognition program, which addresses a
variety of school characteristics in addition to student achievement, will remain in place for
1990, as another important way schools can gain national notice for achieving excellence.
FUNDING SUMMARY
(In millions of dollars)
1989
1990
1991
1992
1993
Budget Authority
-
250
350
450
500
Outlays
-
30
212
337
434
b. Recognizing Superior Teachers
OVERVIEW
Hope for improvement in the schools depends most heavily on teachers, those now in the
system and those who will enter in the years to come.
Teachers work every day with every child. When teachers are highly motivated and com-
mitted to excellence, children know it and are challenged to meet high standards of perfor-
mance. If teachers are not highly motivated, they do not transmit the essential message of how
exciting and important schooling is and how critical are the early years of effort to the child's
future performance as a citizen and in the workforce.
The educational reform movement recognizes this central role for teachers. Teacher training
is under rigorous review, teacher pay is rising, and more and more school systems are linking
financial rewards to excellence in the classroom.
Excellent teachers love their work and believe in what they do. Their success deserves
tangible recognition on a national level.
52
"We should provide merit pay and special recognition to reward good teachers-and
the vast majority are good teachers, who really love their kids and their profession."
George Bush
PRINCIPLES
School systems should develop standards of excellence for teachers, and effective and
fair procedures for measuring success.
In return for their efforts and their willingness to be held to high standards of excel-
lence, teachers deserve public recognition, respect, and appropriate financial rewards.
POLICIES
The President proposes new legislation and $8 million in annual appropriations to estab-
lish the President's Award for Excellence in Education.
PROPOSED CHANGE
(In millions of dollars)
Dollar
Percent
1989
1990
Change
Change
Budget Authority
-
8
+8
n.a.
Outlays
-
6
+6
n.a.
Award competitions would be held annually in each State. All elementary and secondary
school teachers, in public and private schools, teaching any academic subject, could compete
for recognition and awards.
The number of teachers receiving awards in each State would vary with the size of the
State. Each award would be $5,000.
The award would go to the individual teacher and be available for his or her use for any
purpose.
Appropriate ceremonies and events would be held following the selection of each year's
award winners.
The National Science Foundation program that recognizes excellent teachers in mathe-
matics and the sciences only, and provides awards to their schools, would remain a separate
program of special recognition in these selected fields.
53
FUNDING SUMMARY
(In millions of dollars)
1989
1990
1991
1992
1993
Budget Authority
-
8
8
8
8
Outlays
I
6
8
8
8
c. Establishing a National Science Scholars Program
OVERVIEW
A key factor in the competitiveness of American business in world markets today and in
the future is the ability to develop new technology.
America needs talented scientists, mathematicians, and engineers to discover and apply
new knowledge as well as to perform in those workplaces where high technology is already
central. High school students must be well prepared in mathematics and the sciences and
committed to further academic study to expand their knowledge and increase their skills.
Students need encouragement to take more courses in the sciences and mathematics, to
apply themselves to their studies, and to excel.
"Our greatest single strength for the future is
our ability to expand the limits of our
knowledge. From that will flow the scientific and technological advances that will enable us
to compete and to raise the living standards of all the nations of the world."
George Bush
PRINCIPLES
The national interest requires a greater commitment to science and mathematics.
Schools should challenge all students to take more science and mathematics courses.
The best students in every part of the country should know that in addition to the per-
sonal satisfaction they will gain from excellent performance in these fields, and the career
options that will open to them, there are tangible rewards for excellence if they pursue
the study of mathematics or the sciences at a college or university.
POLICIES
The President proposes to seek legislative authority to establish a National Science Scholars
Program. An appropriation of $5 million will be requested for the first year, rising to $20 million
per year by the fourth year.
54
PROPOSED CHANGE
(In millions of dollars)
Dollar
Percent
1989
1990
Change
Change
Budget Authority
-
5
+5
n.a.
Outlays
-
4
+4
n.a.
National standards of excellence for high school seniors' achievement in the sciences and
mathematics would be set for annual competitions for the National Science Scholarships.
One student would be nominated by each Member and Delegate in the House of Repre-
sentatives, one by each Senator, and 30 by the President, for a total of 570 scholars each year.
The scholarships would be for four years for up to $10,000 per year.
Scholarships would be available for use at any accredited institution of higher education
to which the student is admitted. Students would be required to major in the sciences, math-
ematics or engineering and show continuing excellent performance.
Awards for a student who qualifies for other Federal need-based aid or receives other
scholarship aid would not result in total aid in excess of the cost of education at the student's
school.
Students would have opportunities for summer jobs in Federal science laboratories.
FUNDING SUMMARY
(In millions of dollars)
1989
1990
1991
1992
1993
Budget Authority
-
5
10
15
20
Outlays
-
4
9
14
19
d. Fostering Magnet Schools of Excellence
OVERVIEW
Magnet schools-schools with a special curriculum emphasis or other set of characteris-
tics-offer parents an essential choice for their children. Children who go to magnet schools
learn more. Magnet school strategies have been successful across the country.
No single method of education is best suited to all children. No single way of organizing
schools (elementary, middle or secondary) and school systems is the best for every area or for
every mix of students. One of the most encouraging features of the educational reform move-
ment is the willingness of schools and school systems to experiment with alternative approaches
and especially to open the school selection process to parents.
55
229-645 0 ; 89 OLS
BBA
1. EDUCATING THE YOUNG: DRUG PREVENTION
OVERVIEW
For a decade, President Bush has stressed the importance of educating our children and
young adults on the dangers of drugs and has called repeatedly for the Federal government to
work with parents, teachers, churches and other community groups to develop a comprehen-
sive drug education program.
"Fundamentally, the drug problem in America is not one of supply, but of demand. As
much as we do to bust the smugglers and the dealers, as much as we do to eradicate
crops and stop the flow of drugs into this country, as long as Americans are willing to pay
billions of dollars for illegal drugs, somebody somewhere in the world will provide them.
"I will do everything / can as President to help with the best information, the best
research, and the strongest effort possible to get the message to our young people to 'just
say no' to drugs."
George Bush
The first front in the fight against drug abuse is to get our children to realize the fearful
threat to their health, their future and their lives. As they become aware of the devastating
effects of drugs, they will stop buying them and put the suppliers out of business.
PRINCIPLES
All schools, from kindergarten to college, should develop and implement anti-drug
programs for the classroom.
Schools should challenge students to get involved in ending drug use among their peers.
Schools and colleges should adopt tough "no use" disciplinary policies and prove to
students by aggressive enforcement that drug use will not be tolerated.
POLICIES
The Administration is requesting nearly $1.1 billion for drug prevention activities, a 16
percent increase over 1989. This funding includes both ongoing programs and new
initiatives.
The Administration requests $367 million for the Drug-Free Schools and Communities
program, a $12 million increase over 1989. These programs: provide grants to States for
drug prevention education and to institutions of higher education to implement drug
prevention education programs on campus; train teachers in the implementation of drug
prevention education techniques; and fund a variety of other activities, including enforce-
ment, to help young people understand why they must reject drugs.
In addition, the Administration proposes $25 million for a new drug prevention initia-
tive: Urban Emergency Grants. These grants will award funds to a number of city school
systems with the worst drug problems. Schools will have maximum flexibility to propose
a mix of education, security, parent and student involvement and special programs for
children with known drug problems.
69
The Administration also requests $35 million for a new program of community partner-
ship grants for drug abuse prevention. This program, administered by the Department
of Health and Human Services, will make grants to community organizations to stimu-
late local drug prevention efforts involving parents, schools, academia, businesses and
youth and other high risk individuals. Emphasis will be placed on substantial voluntary
participation by the community and grants will be made to communities based on need
and innovative approaches.
Approximately $45 million of the Department of Justice's $150 million drug grant program
to local governments will be devoted to drug prevention activities. These additional
resources will enable such successful programs as the Crime Prevention Campaign's
"McGruff the Crime Dog" to continue and expand to more schools.
In order to ensure that we are getting the best return on our investments, the President
will ask his Drug Policy Director to support research in connection with the review,
formulation and implementation of the drug control effort, both on the demand and
supply side. Additional funding of $5 million is requested for this purpose.
PROPOSED CHANGE
(In millions of dollars)
Dollar
Percent
1989
1990
Change
Change
Budget Authority
941
1,087
+146
+16
Outlays
681
969
+288
+42
70
PROPOSED CHANGE
(In millions of dollars)
Dollar
Percent
1989
1990
Change
Change
Budget Authority
-
5
+5
n.a.
Outlays
-
4
+4
n.a.
National standards of excellence for high school seniors' achievement in the sciences and
mathematics would be set for annual competitions for the National Science Scholarships.
One student would be nominated by each Member and Delegate in the House of Repre-
sentatives, one by each Senator, and 30 by the President, for a total of 570 scholars each year.
The scholarships would be for four years for up to $10,000 per year.
Scholarships would be available for use at any accredited institution of higher education
to which the student is admitted. Students would be required to major in the sciences, math-
ematics or engineering and show continuing excellent performance.
Awards for a student who qualifies for other Federal need-based aid or receives other
scholarship aid would not result in total aid in excess of the cost of education at the student's
school.
Students would have opportunities for summer jobs in Federal science laboratories.
FUNDING SUMMARY
(In millions of dollars)
1989
1990
1991
1992
1993
Budget Authority
-
5
10
15
20
Outlays
-
4
9
14
19
d. Fostering Magnet Schools of Excellence
OVERVIEW
Magnet schools-schools with a special curriculum emphasis or other set of characteris-
tics-offer parents an essential choice for their children. Children who go to magnet schools
learn more. Magnet school strategies have been successful across the country.
No single method of education is best suited to all children. No single way of organizing
schools (elementary, middle or secondary) and school systems is the best for every area or for
every mix of students. One of the most encouraging features of the educational reform move-
ment is the willingness of schools and school systems to experiment with alternative approaches
and especially to open the school selection process to parents.
55
229-645 0 - 3 - 89 - QL3
The Federal Government now finances magnet schools to further desegregation. This
approach should be applied to achieve other worthy goals as well. Some school districts have
used magnet schools to focus resources and attract students to mathematics and science, the
arts, and other special curricula.
Magnet schools increase choices for parents and students and generate healthy competi-
tion among schools. These features improve the quality of education.
"Magnet schools are a way of promoting excellence and upgrading the quality of an
entire school system."
George Bush
PRINCIPLES
Expanding the use of magnet schools increases choice, expands opportunities for children,
and ultimately improves the quality of all the schools.
Federal funds can help States and school districts design and implement magnet schools
more rapidly.
POLICIES
The President proposes a new authority and $100 million in new funding for magnet
schools.
PROPOSED CHANGE
(In millions of dollars)
Dollar
Percent
1989
1990
Change
Change
Budget Authority
-
100
+100
n.a.
Outlays
-
12
+12
n.a.
Legislation will authorize grants to States for the establishment of new magnet schools.
The current authority for magnet schools for desegregation purposes will not be affected.
Magnet school grants will be available for schools offering choices from the full range of
curriculum options. States will be encouraged to examine opportunities for development of
magnet schools with mathematics and science orientations.
These new magnet schools will be in addition to any such efforts currently underway in
the States and school districts. Special consideration will be given to proposals that offer recog-
nition of the potential of children from low-income families.
Funds will be for initial costs, with a requirement that States and local school systems
rapidly assume full operating costs.
56
The President proposes a selected group of carefully defined initiatives to support these
principles and to demonstrate his personal leadership of the national movement to improve
the quality of American education. These initiatives would: reward schools that make substan-
tial progress in educational achievement; reward excellent teachers; provide scholarships for
the best science and mathematics students; provide new funding for magnet schools to enhance
educational excellence; encourage States to broaden access to teacher and school principal
positions; provide more endowment matching funds for Historically Black Colleges and Univer-
sities; support more experimentation for achieving better educational results; and incorporate
policies and procedures for accountability into Federal programs.
PROPOSED CHANGE
(In millions of dollars)
Dollar
Percent
1989
1990
Change
Change
Budget Authority
-
411
+411
n.a.
Outlays
-
58
+58
n.a.
FUNDING SUMMARY
(In millions of dollars)
1989
1990
1991
1992
1993
Budget Authority
-
411
501
606
651
Outlays
-
58
345
492
593
a. Rewarding Successful Schools
OVERVIEW
Helping schools develop the skills and abilities of our children to their maximum poten-
tial is one of the Administration's major goals. In the highly decentralized world of American
education, some schools consistently reach this goal; others do SO for some students, but leave
many others behind.
Achievable standards of excellence can and should be set for all students, for all teachers,
and for every school. Our children deserve no less; our economic future demands it.
Helping children develop their potential can present special challenges for schools with
large numbers or proportions of low-income children. The Federal Government provides bil-
lions annually for supplementary services for educationally disadvantaged children in these
schools.
50
The Federal Government should serve as a catalyst in this effort, providing to successful
schools the national recognition and financial rewards that clearly demonstrate the significance
of school improvement.
"We should demand more from students [by imposing] higher academic standards. We
should make sure students are learning what they should. We should demand more from
teachers. We should demand more from principals. We should demand more from parents.
In demanding more performance, we are providing more opportunity to all students, but
particularly to those who have the furthest to go-because the poor are not served by
meaningless diplomas."
George Bush
PRINCIPLES
Educating all students to their full potential should be a basic goal of all schools.
Demonstrated school-wide progress in achieving excellence deserves public recognition
and support.
Financial incentives can spur schools with especially difficult problems to significantly
improve their educational achievement.
POLICIES
The President will propose legislation and a 1990 appropriation of $250 million for a new
initiative to reward schools whose students demonstrate substantial educational progress. Fund-
ing for the initiative will increase each year until an annual funding level of $500 million is
reached.
PROPOSED CHANGE
(In millions of dollars)
Dollar
Percent
1989
1990
Change
Change
Budget Authority
250
+250
n.a.
Outlays
-
30
+30
n.a.
Guidelines will be established for the objective measurement of school improvement,
emphasizing improved educational performance, a safe and drug-free environment, and fewer
dropouts.
Elementary, secondary, and middle schools throughout the country will compete annually
within each State for recognition as Presidential Merit Schools. States will add to the nation-
al criteria specific selection standards that reflect the mix of students and educational condi-
tions within each State.
51
PROPOSED CHANGE
(In millions of dollars)
Dollar
Percent
1989
1990
Change
Change
Budget Authority
-
5
+5
n.a.
Outlays
-
4
+4
n.a.
National standards of excellence for high school seniors' achievement in the sciences and
mathematics would be set for annual competitions for the National Science Scholarships.
One student would be nominated by each Member and Delegate in the House of Repre-
sentatives, one by each Senator, and 30 by the President, for a total of 570 scholars each year.
The scholarships would be for four years for up to $10,000 per year.
Scholarships would be available for use at any accredited institution of higher education
to which the student is admitted. Students would be required to major in the sciences, math-
ematics or engineering and show continuing excellent performance.
Awards for a student who qualifies for other Federal need-based aid or receives other
scholarship aid would not result in total aid in excess of the cost of education at the student's
school.
Students would have opportunities for summer jobs in Federal science laboratories.
FUNDING SUMMARY
(In millions of dollars)
1989
1990
1991
1992
1993
Budget Authority
-
5
10
15
20
Outlays
-
4
9
14
19
d. Fostering Magnet Schools of Excellence
OVERVIEW
Magnet schools-schools with a special curriculum emphasis or other set of characteris-
tics-offer parents an essential choice for their children. Children who go to magnet schools
learn more. Magnet school strategies have been successful across the country.
No single method of education is best suited to all children. No single way of organizing
schools (elementary, middle or secondary) and school systems is the best for every area or for
every mix of students. One of the most encouraging features of the educational reform move-
ment is the willingness of schools and school systems to experiment with alternative approaches
and especially to open the school selection process to parents.
55
229-645 0 - 3 - 89 - QL3
FUNDING SUMMARY
(In millions of dollars)
1989
1990
1991
1992
1993
Budget Authority
-
13
13
13
13
Outlays
-
2
10
13
13
g. Endowing Historically Black Colleges and Universities
OVERVIEW
For over a century the Historically Black Colleges and Universities (HBCUs) have been a
unique and essential part of America's heritage. At a time when the law countenanced racial-
ly separated systems of higher education, and many schools would not open their doors to Black
Americans, these institutions offered them the best, and often the only opportunity for a higher
education. Without the HBCUs, far fewer Black Americans would have achieved economic and
professional success.
Today, racial discrimination is not tolerated; yet, the Historically Black Colleges and Univer-
sities still represent a vital component of American higher education, enriching educational
choice.
The Federal Government has long recognized the unique place which the HBCUs occupy.
Grant programs provide resources directly to these schools to improve and expand their educa-
tional programs. Presidential Executive Orders assure appropriate consideration of HBCUs in
the allocation of other resources across the Government.
The most important support which the Government can provide, however, is incentives to
increase endowments. Large and growing endowments are the key to any institution's long
term financial health and security.
"Black colleges and universities traditionally have instilled a strong sense of self-worth,
pride, and moral fiber in the men and women that pass through their doors."
George Bush
PRINCIPLES
Historically Black Colleges and Universities merit Federal support because of their
unique historical role.
Endowment building is the Government's most effective contribution to the future finan-
cial strength of these institutions.
POLICIES
The President will propose a total of $60 million over four years, beginning with $10 mil-
lion in Fiscal Year 1990, for endowment matching grants for Historically Black Colleges and
Universities.
60
PROPOSED CHANGE
(In millions of dollars)
Dollar
Percent
1989
1990
Change
Change
Budget Authority
n.a.
10
+10
n.a.
Outlays
n.a.
1
+1
n.a.
HBCUs are currently eligible to compete for endowment matching grants under Part C of
Title III of the Higher Education Act. Title III provides endowment matching grants to HBCUs
as well as other institutions with financial needs. In 1988, HBCUs were awarded $2 million
in Title III endowment matching grants.
The additional appropriations will be reserved solely for the HBCUs, under the terms and
conditions of Part C.
This money will provide a unique opportunity for these schools to launch new fund rais-
ing campaigns to generate increased non-Federal support.
FUNDING SUMMARY
(In millions of dollars)
1989
1990
1991
1992
1993
Budget Authority
n.a.
10
20
20
10
Outlays
n.a.
1
9
18
19
h. Improving Accountability in Education
OVERVIEW
Accountability is the key to successful management of any enterprise. Educational programs
often fail to incorporate principles of accountability. To improve the education of America's
children, educational programs at every level must set standards of excellence and hold stu-
dents, teachers and schools accountable for meeting those standards.
The demand for accountability is a prominent part of the education reform movement.
School districts have begun to make public more and more information about the performance
of students in individual schools and have instituted competency tests for students and teachers.
States have undertaken measures to improve the certification of teachers and to prod under-
performing schools and school districts into corrective actions. Many of the initiatives in the
President's program are designed to enhance accountability in education: the Merit Schools,
Magnet Schools and the President's Award for Excellence in Education.
The Federal Government's education programs should be a model to which States and
localities can look for how accountability systems are established and adhered to.
61
Certificates of Recognition and grants will be awarded, with special emphasis on schools
participating in the Federal compensatory education program ("Chapter 1"), and any others
that enroll substantial numbers or proportions of children from low-income families.
Criteria for Chapter 1 Merit Schools will take into account the Chapter 1 Program Im-
provement criteria set by each State.
Awards will be scaled to demonstrated improvement and school size.
A school that receives a cash award may use the money for any purpose that furthers its
educational programs. Support from other Federal, State or local sources may not be reduced
because of the award.
The Secretary of Education's Blue Ribbon School recognition program, which addresses a
variety of school characteristics in addition to student achievement, will remain in place for
1990, as another important way schools can gain national notice for achieving excellence.
FUNDING SUMMARY
(In millions of dollars)
1989
1990
1991
1992
1993
Budget Authority
-
250
350
450
500
Outlays
-
30
212
337
434
b. Recognizing Superior Teachers
OVERVIEW
Hope for improvement in the schools depends most heavily on teachers, those now in the
system and those who will enter in the years to come.
Teachers work every day with every child. When teachers are highly motivated and com-
mitted to excellence, children know it and are challenged to meet high standards of perfor-
mance. If teachers are not highly motivated, they do not transmit the essential message of how
exciting and important schooling is and how critical are the early years of effort to the child's
future performance as a citizen and in the workforce.
The educational reform movement recognizes this central role for teachers. Teacher training
is under rigorous review, teacher pay is rising, and more and more school systems are linking
financial rewards to excellence in the classroom.
Excellent teachers love their work and believe in what they do. Their success deserves
tangible recognition on a national level.
52
"We should provide merit pay and special recognition to reward good teachers-and
the vast majority are good teachers, who really love their kids and their profession."
George Bush
PRINCIPLES
School systems should develop standards of excellence for teachers, and effective and
fair procedures for measuring success.
In return for their efforts and their willingness to be held to high standards of excel-
lence, teachers deserve public recognition, respect, and appropriate financial rewards.
POLICIES
The President proposes new legislation and $8 million in annual appropriations to estab-
lish the President's Award for Excellence in Education.
PROPOSED CHANGE
(In millions of dollars)
Dollar
Percent
1989
1990
Change
Change
Budget Authority
-
8
+8
n.a.
Outlays
-
6
+6
n.a.
Award competitions would be held annually in each State. All elementary and secondary
school teachers, in public and private schools, teaching any academic subject, could compete
for recognition and awards.
The number of teachers receiving awards in each State would vary with the size of the
State. Each award would be $5,000.
The award would go to the individual teacher and be available for his or her use for any
purpose.
Appropriate ceremonies and events would be held following the selection of each year's
award winners.
The National Science Foundation program that recognizes excellent teachers in mathe-
matics and the sciences only, and provides awards to their schools, would remain a separate
program of special recognition in these selected fields.
53
FUNDING SUMMARY
(In millions of dollars)
1989
1990
1991
1992
1993
Budget Authority
100
100
100
100
Outlays
12
80
98
100
e. Developing Alternative Certification Systems For Teachers and
Principals
OVERVIEW
For the education of children to be the very best, their teachers must be the very best.
Teachers must be highly motivated to teach and knowledgeable in their subject areas. In light
of the shortages of competent teachers of mathematics and the sciences, it is especially impor-
tant that qualified scientists and engineers who want to teach be allowed to bring their talents
into the schools.
For teachers to do their best, they must work in school environments that demand and
reward excellence. Creating and maintaining such schools is the primary responsibility of
principals. The leadership role of principals is well documented as a key to effective schools.
In too many States and school districts, the pathway to becoming a teacher or a principal
is blocked by certification requirements that have little to do with these central goals. Many
certification systems make it difficult if not impossible for a person with excellent subject area
knowledge and the desire and ability to teach to get into the classroom. Similar barriers face
those with leadership qualities fully demonstrated in other fields who want to help improve
the schools.
New college graduates and older persons seeking a second career in teaching or school
administration are often frustrated by too many hiring criteria that do not relate to subject
area knowledge.
A number of States and school districts are implementing creative and flexible certifica-
tion systems; many more would do so in response to added incentives.
"We should break down the barriers to talented people who want to teach and who
have demonstrated their competence in other fields."
George Bush
PRINCIPLES
Enlarging the supply of good teachers and principals should be the goal of certification
systems, not barring access.
Federal funds can provide incentives to foster development of new systems and help pay
for their implementation.
57
POLICIES
The President proposes new authority and $25 million for 1990 to make grants to States
and school districts to develop alternative certification systems.
PROPOSED CHANGE
(In millions of dollars)
Dollar
Percent
1989
1990
Change
Change
Budget Authority
-
25
+25
n.a.
Outlays
-
3
+3
n.a.
Grants will be one-time only, with States allowed to spend the money over several years,
if needed.
Grants will be for additional costs above what the States are now spending on such systems.
States can use the funds for whatever purpose necessary, including design and testing of
different options tailored to their circumstances, establishing administrative structures, train-
ing staff, developing recruitment strategies, and evaluating the new systems.
The existing authority for alternative teacher certification demonstrations funded by the
Federal Government in the Fund for the Improvement and Reform of Schools and Teaching
will remain in place to support carefully designed demonstration projects from which States
and localities can learn new techniques.
FUNDING SUMMARY
(In millions of dollars)
1989
1990
1991
1992
1993
Budget Authority
-
25
-
-
-
Outlays
-
3
17
4
*
* Less than $500,000.
f. Expanding Experiments For Educational Achievement
OVERVIEW
Educational reform is sweeping the country. States and school districts are responding to
the public's demand to improve the quality of education for all children by trying a host of new
ideas and implementing old ideas that worked.
One of the Federal Government's most important responsibilities is to support experimen-
tation whose results help States and localities find out what can work in their schools.
58
March 2, 1989
DRB
THE WHITE HOUSE
WASHINGTON
y
MEMORANDUM
TO:
DAVID DEMAREST
Dodey
FROM:
JOSEPH W. HAGIN
extra
SUBJECT:
APPROVED PRESIDENTIAL ACTIVITY
EVENT:
Address Annual National Legislative
Conference for Independent Insurance
Agents of America, Inc.
DATE:
March 14, 1989
TIME:
10:15 - 10:45 am
DURATION:
30 minutes
LOCATION:
Capital Hilton Hotel
ATTIRE:
Business Suit
REMARKS REQUIRED: Yes
MEDIA COVERAGE:
Open
FIRST LADY
No
PARTICIPATION:
ADDITIONAL
INFORMATION:
CONTACT:
TELEPHONE: OFFICE
HOME
NOTE: PROJECT OFFICER, SEE ATTACHED CHECKLIST
Ed Rogers
Marlin Fitzwater
David Bates
James Cicconi
David Demarest
David Valdez
Fred McClure
Jean Lamb
USSS. PPD
Susan Porter Rose
Steve Studdert
Operations - Executive Residence
Patty Presock
John Keller
WHCA Audio/Visual
Speechwriting Office
Tim McBride
WHCA Operations
Laurie Firestone
J. Bonnie Newman
Robert Guttman
Tony Lopez
March 2, 1989
DRB
THE WHITE HOUSE
washington
MEMORANDUM
Davis/ Dodey
TO:
DAVID DEMAREST
FROM:
JOSEPH W. HAGIN
extra
SUBJECT:
APPROVED PRESIDENTIAL ACTIVITY
EVENT:
Address Annual National Legislative
Conference for Independent Insurance
Agents of America, Inc.
DATE:
March 14, 1989
TIME:
10:15 - 10:45 am
DURATION:
30 minutes
LOCATION:
Capital Hilton Hotel
ATTIRE:
Business Suit
REMARKS REQUIRED: Yes
MEDIA COVERAGE:
Open
FIRST LADY
No
PARTICIPATION:
ADDITIONAL
INFORMATION:
CONTACT:
TELEPHONE: OFFICE
HOME
NOTE: PROJECT OFFICER, SEE ATTACHED CHECKLIST
Ed Rogers
Marlin Fitzwater
David Bates
James Cicconi
David Demarest
David Valdez
Fred McClure
Jean Lamb
USSS PPD
Susan Porter Rose
Steve Studdert
Operations Executive Residence
Patty Presock
John Keller
WHCA Audio/Visual
Speechwriting Office
Tim McBride
WHCA Operations
Laurie Firestone
J. Bonnie Newman
Robert Guttman
Tony Lopez