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Economic Club of New York 2/6/91 [OA 6855] [2]
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Economic Club of New York 2/6/91 [OA 6855] [2]
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Economic Club of New York 2/6/91 [OA 6855] [2]
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26
21
2
5
McNally/Blymire
Feb. 4, 1991
Draft Three (B:ECON-NYC)
PRESIDENTIAL REMARKS: ECONOMIC CLUB OF NEW YORK
NEW YORK HILTON, NEW YORK CITY
WEDNESDAY, FEB. 6, 1991, 8:30 P.M.
Thank you,
.
And thank you, each one of you -- not
for standing up to greet me -- but for standing up for all those
fighting against aggression tonight in the Persian Gulf -- and
especially -- the fighting men and women of the United States of
America. III
This year marks a defining hour -- a moment of truth -- for
this generation, for this country, and for the United Nations
itself. We were patient and we were cautious. But when the
moment of truth came, America and the world did what was moral,
what was just, and what was right.
We said the occupation of Kuwait would not stand.
And three weeks ago tonight, at just about this time, we
announced that the liberation of Kuwait had begun. III
Three weeks ago tonight, allied forces moved to end a
conflict we did not seek and did not begin. But ladies and
gentlemen -- it's one we and our allies do intend to finish. 111
Tonight we are on course and on schedule. Mission by
mission, hour by hour, Iraq's capacity to wage war is being
systematically destroyed by American and Coalition forces.
The road to real peace will be long and tough. But we will
prevail. And when we do, we will have before us an historic
opportunity. From the confluence of the Tigris and Euphrates --
2
where civilization began -- civilized behavior can begin anew.
We can build a better world -- a new world order. III
Tonight, the world is united by shared commitments, shared
interests, shared hopes. Our efforts will determine the kind of
legacy we bequeath our children, the kind of world they will live
in. And so, let us re-dedicate ourselves to the ideals in which
our troops so resolutely believe. Because in the final analysis,
America and her partners will be measured not by how we wage war
-- but how we make peace.
I said in my State of the Union Address that "We are the
Nation that can shape the future." And shaping the future is a
job that begins at home: Long-term economic growth is central to
quality of life for America's families, quality of decency for
America's communities, and to the quality of leadership America
can bring in its special role as the world's leading diplomatic,
cultural, and economic power.
Just over eight years ago, the longest peacetime expansion
in American history began. Working together, we created millions
of new jobs, and cut both interest rates and inflation in half
-- a triumph driven by the energies of the most dynamic and
diverse economy on Earth.
Against this background, the events of 1990 served to remind
us that even a fundamentally healthy economy faces the risk of
temporary disturbances and short-term setbacks. For example,
when Iraq invaded Kuwait in August 1990, it was a shock to the
world's conscience. Business and consumer confidence fell. oil
3
prices rose. Taken together, this produced a very real blow to
an economy that had already slowed.
But make no mistake: The current recession does not signal
any decline in the fundamental, long-term health or basic
vitality of our economy. America is a "can do" nation. America
is home to the largest, most productive economy on Earth.
My Administration's economic policies are designed to
strengthen the foundation for a solid recovery and the highest
possible rate of sustained economic growth. I described the
three pillars of that foundation in my State of the Union
Address: Encouraging economic growth; investing in the future;
and giving power and opportunity to the individual. 111
Encouraging economic growth means reducing federal borrowing
-- by cutting the growth of federal spending now. That's why we
sent Congress a budget proposal that holds spending growth below
the rate of inflation. And that's why the budget law was armed
with real teeth -- "pay-as-you-go" provisions and enforceable
spending caps -- aimed at cutting the growth of debt by nearly
half a billion dollars.
To ensure economic growth, this Administration will also
redouble its efforts to weed out counter-productive government
regulations. The market must be allowed to work without
unnecessary federal intervention. 111
We must also fuel economic growth by providing incentives to
promote private savings. That means tax-free family savings
4
accounts; penalty-free I.R.A. withdrawals for first-time home
buyers; and yes -- a reduced tax for long-term capital gains.
We must also renew our investments in America's future.
That means investing in the education and safety of our children.
Investing in the infrastructure of our transportation system.
Investing in reforms for the financial services system.
Investing in high technology and in space -- to the Moon and Mars
and beyond.
The budget proposal we sent to Capitol Hill includes record
amounts for research and development, one of the most important
investments we can make in the long-term economic and military
strength of our Nation. It also recognizes that government must
help translate the results of basic research into the generic
technologies that strengthen our industries and improve our
lives. III But our most important investment isn't in machines
-- it's in the people they're designed to serve. Together with
the Nation's Governors, my Administration has launched a
comprehensive effort at reform and restructuring, aimed at
producing an educational renaissance. III
We've still got a long way to go. But we won't sell our
kids short. As one observer said of the troops manning Patriot
missiles in the Gulf: "In one day, they wiped out the idea that
young Americans are not smart enough for the 21st Century." 111
Investing in the future also means a financial system that
is both safe and profitable -- a world-class financial system for
a world-class economy. The banking reform plan we unveiled
5
yesterday puts greater reliance on the discipline of the
marketplace. By allowing non-banks to invest in banking, it
provides opportunities for a fresh infusion of capital. By
permitting nationwide banking, we can withstand regional
downturns and provide economies of scale. And product
diversification will provide greater competition, better service,
and decreased risk.
The challenges ahead are great. But because of all these
efforts, by any historical standard, the current downturn is
expected to be mild and brief. And today in America, the bottom
line is this: While our economy may be beset by difficulty -- it
should not be beset by doubt.
A healthy sense of confidence is backed by the facts.
Inflation has been kept under control. Interest rates are
beginning to decline further. The trade deficit declined for the
third year in a row. Inventories have been kept down, reducing
the need for production cuts to work off excess inventory.
Because our major trading partners are seeing relatively strong
growth, and the price of U.S. exports on world markets remains
low, the pace of U.S. exports will continue to set record highs.
Even oil prices have fallen substantially since their peaks
in October, especially since the start of Operation Desert Storm.
And in this way, the first-rate performance of American and
Allied troops has already helped to preserve the global economic
prosperity so crucial to achieving real peace.
6
Later this month, the Administration will release its
National Energy Strategy. The strategy will propose federal,
state and private sector initiatives to increase energy
efficiency and conservation. It recognizes the need for
sustained economic growth and creating a clean, safe environment.
A key goal of the Administration strategy is to reduce our
vulnerability to foreign oil supply disruptions. Some, however,
will suggest that enhancing our energy security is not enough,
and that we should embark upon drastic measures designed to
achieve total energy independence. Let me tell you: We are a
long way from total energy independence. Unwise and extreme
measures would only hurt American consumers, American jobs and
American industries. 111
There's no doubt we must begin reducing our energy
vulnerability now. That will require a broad and balanced array
of actions -- conservation and efficiency measures, new
production steps, deregulatory actions, and investments in
promising energy technologies. This is the kind of prudent,
balanced, and comprehensive approach my Administration will take.
And finally, don't forget another underlying strength of our
economy: The flexibility of America's free market system. To
preserve this flexibility, we must keep our markets open and hold
government restrictions to minimum. This is not easy.
Naturally, we all want security. However, often that means
keeping out the competition. For the sake of future generations
7
of Americans, we must level the playing field, so that
international trade is free -- and fair.
That is what we are doing in the Uruguay Round of trade
negotiations -- trying to lower barriers to the free flow of
goods and services around the world. That is also what we will
seek in the negotiations we will launch this year with Mexico and
Canada to create a North American Free Trade Area. And my
Enterprise for the Americas Initiative is intended to extend the
benefits of flexibility throughout the Western Hemisphere.
To build a new, peaceful world order, we must also secure
the democratic triumphs of the past year. I am thinking
especially of the "Revolution of '89." The new democracies in
central and eastern Europe inspire us all with their commitment
to free societies and free market economies, but they face
daunting obstacles from the Communist past, as well as severe new
problems brought on by lost markets and higher oil prices.
My Administration is committed to help and committed to
lead: Despite the burden we are bearing in the Gulf, I have asked
Congress for $400 million in new grant assistance for eastern and
central Europe.
Four decades ago, the Marshall Plan helped build a West
European zone of prosperity and security that greatly benefitted
the United States. Together with our West European partners, we
can now extend this success to create a Europe whole and free --
an entire continent of prosperity and stability that fulfills the
vision of the Marshall Plan.
8
With their great human potential and commitment to market
economic reform, central and eastern European countries offer
real opportunities for U.S. trade and investment. I urge
American business to seize these opportunities, as many are
doing. G.E.'s Jack Welch weighed in with a $150 million joint
venture with Tungsram in Hungary. Union Pacific's Drew Lewis
stepped up to the plate with an impressive effort to help Poland
modernize its railroads. And Bell Atlantic and U.S. West have
begun an $80 million telecommunications venture in Prague.
History is moving decisively in favor of freedom -- thanks,
in large part, to American ideals and perseverance. The
touchstones of the modern world --- which the emerging democracies
are now striving for -- are free markets, free speech, and free
elections. America has lived by these tenets for over 200 years.
They have given us both our power and our purpose.
That is why America and our allies are going to prevail in
the Gulf. And that is why America and our partners are going to
prosper in the years to come. Our best days are before us. And
I can assure you -- America, and the world -- that we will
continue to fight for principle. We will continue to do the hard
work of freedom.
III
Thank you. God bless the troops in the Gulf. And God bless
the United States of America.
#
#
#
White House News Summary
Monday, February 4, 1991 -- 1
2:00 P.M. NEWS UPDATE
AID TO STATES (Donald Rothberg, AP) -- President Bush told the
nation's governors "we are going to have to fight together" to win
congressional approval for his plan to transfer billions of dollars
in domestic programs to the states. "I am not naive" about the
resistance that could face his plan on Capitol Hill, Bush said at
a White House meeting. "It is something that is very attractive
to the states," said Gov. Gardner of Washington, after the meeting
with Bush. "There's a great deal of incentive for us." Gardner
said the governors got assurances that if they don't like any part
of the package "we can trade for things we think are important."
Gov. Ashcroft of Missouri said the programs Bush proposed shifting
would save the states "about four million bureaucrat hours of
paperwork just to meet the federal reporting requirements. The
benefits to the states and to the people ultimately would be
monumental."
MEETING WITH GOVERNORS/GULF (Gene Gibbons, Reuter) -- President
Bush gave state governors a glowing report on the status of the war
and vowed to fight the war with Iraq "to a successful conclusion."
"There have been no surprises and there will not be any quick
changes nor will I try to tie the hands of the military because I
just feel we have to go forward and prosecute this to a successful
conclusion," he said. "I have confidence that we're doing the
right thing and I have confidence it's going according to plan,"
Bush said.
ISRAELI AID/PRESIDENT (Alan Elsner/Reuter) -- President Bush has
told American Jewish leaders that the U.S. will have difficulty
responding to Israel's request for additional aid to compensate for
losses incurred in the war and to help absorb Soviet Jewish
immigrants. "Unfortunately when we mentioned some assistance [in
a meeting Thursday with the President and Secretary Baker], the
response was, you realize the budget crisis we're having here,"
said Shoshana Cardin, who led the Jewish delegation.
PIPE BOMBS/NORFOLK (Norfolk/UPI) -- Authorities discovered two pipe
bombs attached to a storage tank containing 1 million gallons of
alcohol, forcing the evacuation of businesses and residences within
a half mile radius. Authorities had no concrete motive or suspects
but Thomas Gardner, Norfolk fire chief, noted: "There is nothing
to connect this to a terrorist act at this point in time."
SHUTTLE BUS ATTACK (Riyadh/AP) -- A gunman fired on a shuttle bus
as it passed a junkyard in the port city of Jiddah, slightly
injuring two American military personnel, U.S. military officials
said. Col. Ahmed al-Robayan, a Saudi military spokesman, declined
to characterize the incident as a terrorist act, saying such a
determination could not be made until the gunman was captured.
ALLIED AIR STRIKES/CIVILIANS (Najaf, Iraq/Reuter) -- American
planes dropped 12 bombs on a residential area some three miles from
one of the holiest Shiite Moslem shrines, killing at least 20
people and wounding dozens, residents said.
-
White House News Summary
Monday, February 4, 1991 -- 2
IRAQI CONVOYS/U.S. ATTACKS (Dhahran/AP) -- The relentless attack
by U.S. and allied war-planes has forced Iraqi soldiers to move in
smaller convoys and top officers to seek protection in schools,
U.S. military officials said. In the last 24 hours, the officials
said, the U.S. Air Force knocked out 25 Iraqi tanks moving in enemy
territory and lost one UH-1 helicopter that crashed in a non-
combat situation in Saudi Arabia, killing all four crewmen. Allied
warplanes also destroyed five to 10 vehicles moving through Kuwait,
suggesting the air campaign has forced Iraqi ground forces to move
in smaller convoys to avoid detection, Marine Maj. Gen. Robert
Johnston said. At a separate news conference in Riyadh, Gen.
Schwarzkopf said that allied air strikes have been so effective
that senior Iraqi officers are moving their headquarters into
schools because "they know we're not going to attack civilian
targets."
JORDANIAN CASUALTIES/PEREZ DE CUELLAR (U.N./AP) -- Secretary-
General Perez de Cuellar condemned the allied bombing raids that
Jordan says have injured and killed Jordanian truck drivers on
Iraq's highway from Baghdad to Amman. "Jordan is an innocent
victim of what is happening," Perez de Cuellar said as he entered
U.N. headquarters. "This is something inadmissible, why Jordan has
to suffer in a war in which it is not a party."
GROUND WAR/IRAQ (Baghdad/AP) -- Allied bombs pounded Baghdad, and
official newspapers promised that the country would retaliate with
a ferocious hit-and-run ground war that would end in Iraqi victory.
The daily al-Thawra said the country will use its armor, mechanized
units and special commando forces in coming battles.
IRANIAN MEDIATION OFFER/U.N. (U.N./Reuter) -- Secretary-General
Perez de Cuellar welcomed Iran's offer to mediate between Iraq and
the U.S. to help end the war. "I welcome such an initiative. I
think Iran is in a good position to produce a formula which could
put an end to the present situation," he told reporters.
###
Hutchings
NSC
PRESIDENTIAL SPEECH ON EASTERN EUROPE
I.
PURPOSE
Reaffirm U.S. commitment and leadership at a time when the
new democracies of central and eastern Europe are at serious
risk; announce new U.S. assistance levels and use that
pledge to leverage substantially more from the Europeans and
stimulate U.S. investment.
II. THEMES
From the beginning, the Administration set as one of its
highest priorities support for democratic change in Eastern
Europe as the key to ending Europe's tragic division.
The "revolutions of '89" transformed a continent. (Recall
trips to Poland and Hungary in 1989 and to Prague in 1990.)
Eastern Europe's peaceful democratic revolutions inspired us
all; these countries, beginning with Poland, have taken bold
and courageous steps toward building democratic rule and
market economies on the ruins of totalitarianism.
begin
But they face daunting obstacles: huge debt burdens, aging
industries, etc., as well as severe new economic problems
gardstiff
here
brought on by loss of markets and sharply rising oil prices.
The U.S. and its West European partners have an enormous
stake in the success of these fragile democracies.
If they fail, Europe could be redivided between a
prosperous and secure west and an impoverished and
unstable east, with an uncertain USSR beyond.
If they succeed, we could build a Europe more stable
and secure than history has known, forging a broader
commonwealth of freedom and a new world order.
Despite high costs to their economies, these new democracies
were early and strong supporters of UN sanctions against
Iraq. The world community must return this solidarity.
The next year will be critical. As the new democratic
leaderships implement the painful but essential economic
reforms, they must know that the West stands with them.
Four decades ago, the Marshall Plan helped build a West
European zone of prosperity and cooperation, to the great
benefit of our security and economic prosperity as well.
Together we and our West European partners can now extend
this success to central and eastern Europe as well --
creating a wider zone of prosperity and stability that
fulfills the vision of the Marshall Plan.
Along with substantial financial and technical assistance,
these countries need new investment to push their economies
on the path of sustained growth. To help them attract that
investment, we must insure their access to the broader
European market and full integration into the world economy.
As the obstacles to their economic development are overcome,
central and eastern Europe, with its great human potential
and commitment to throughgoing economic reform, offers
tremendous opportunities for U.S. trade and investment.
III. NEW INITIATIVES
(Begin by summarizing assistance to date and citing recent
major initiatives -- $5 billion in IMF credits achieved at
our initiative, substantial emergency food aid, etc.)
Ask Congress for [$470 million] in new grant assistance in
FY92, representing a 50% increase over last year's request.
Call on other G-24 countries to pledge substantial new
assistance part "responsibility sharing" for countries
particularly hard hit by Iraq's aggression. Together with
the international financial institutions and the Gulf oil-
producing states, we call on them to cover fully the higher
energy costs caused by the Gulf crisis.
Propose a Jackson-Vanik graduation program so that Hungary
and Czechoslovakia can move quickly toward permanent Most
Favored Nation status.
Call on other holders of official Polish debt to join us in
reducing that burden by 50% this year and more in the years
ahead. [Urge commercial creditors to follow suit.]
UNDER REVIEW:
[Announce loan guarantee program to support stabilization
programs for Czechoslovakia, Hungary, and others moving
toward currency convertibility (following the successful
Polish plan, which we took the lead in supporting).
NOTIONAL:
Call on the G-7 to reach agreement at the London Economic
Summit in July on a comprehensive program of debt relief for
central and eastern Europe.
Offer support for creation of a Central European Free Trade
Zone -- linked, like EFTA, to the EC -- as a stepping stone
toward full access to the broader European market.
Ask Secretary Mosbacher to lead investment missions (of
leading U.S. CEO's) to every East European capital over the
next six months.
If
NSC
Treas.
470 or 400 million
AD
E. Europe
in newgrant assistance for
several
400 + 70
European Bank for
Reconstruction & Development
the growth of federal spending
what budget will
cuts the growth of P.S.
February 4, 1991
MEMORANDUM FOR CHRISS WINSTON
FROM:
CAROL BLYMIRE
SUBJECT:
FACT-CHECKING CHANGES/SUGGESTIONS
Chriss, below please find the suggested changes/revisions
for the address to the Economic Club of New York. Factually, it
is pretty sound, since most of it was drawn directly from the
State of the Union.
PAGE 1
Para. 1, sent. 2; Change to "And I thank each one of
you also, spell out "United States of America", instead of
"U.S.A."
Para. 2, sent. 1; Delete "for" before "this country".
Replace "for" with "and" before "the United Nations", and delete
"itself".
Para. 3, sent. 3; "We were slow to anger.' -- this is not
true. I think the President was probably very angry, as was the
country, especially with the hostage situation.
Para. 6, sent. 2; Change "it's" to "this is".
Para. 8, sent. 3; "an" should be before historic.
Para. 8, sent. 4; I'm not really crazy about the whole
sentence. It kind of sounds like we're going to nuke the place
and make them start all over. I spoke with Bob Hutchings about
it and he agreed that it was harsh and didn't sit well with him.
He told me he didn't comment on the draft because he didn't want
to criticize non-NSC matters.
PAGE 2
Para. 1, sent. 2; Delete "Tonight", and start sentence with
"Our efforts. " since the efforts we put forth are not taking
place only "tonight".
Para. 1, sent. 3; Delete "tonight".
Para. 2, sent. 1; Insert "in my State of the Union Address"
before "that 'We are
"
Para. 5, sent. 3 and 4; Combine this two to read "Business
and consumer confidence fell, and oil prices rose." I think it
serves the next sentence better since it starts out with "Taken
together
"
PAGE 3
Para. 1, sent. 4; "America is on the road back" is an
awkward sentence. Maybe "America is getting back on track"?
Para. 2, sent. 1; Move the word "to" in front of "mitigate",
no split infinitives in this speech! Add "to" before
"strengthen".
Para. 3, sent. 1; Lowercase "f"s in federal.
Para. 3, sent. 2; Lowercase "b" in budget. I remember
during the last round of budget rhetoric, we called it a budget
proposal before it was passed.
Para. 4, sent. 2; Replace semi-colons with commas.
Para. 5, sent. 2; I suggest replacing "kids" with
"children".
PAGE 4
Para. 1, sent. 1; Again, lowercase "b" in budget, and
"proposal" inserted.
Para. 1, sent. 2; Delete "Our budget" and replace with "It".
Para. 1, sent. 4; This section does not blend well with the
previous technology section. I suggest deleting this altogether,
or creating an entire education paragraph.
Para. 2, sent. 2; Change "don't" to "we can't".
Para. 2, sent. 3; Since Ed doesn't source the quote, this
sentence sounds as if the observer was with the President. I
don't think it would be wise to allude that people associated
with the President doesn't have faith in young people today.
Para. 4, sent. 2; Change "thanks to" to "because of".
- more -
PAGE 5
Para. 1, sent. 1; Change to If
backed by fact. "
Para. 1, sent. 2; Change "Inflation's " to "Inflation has
been
=
Para. 1, sent. 4; Change "mitigating" to "alleviating".
Para. 1, sent. 5; David Walters, the Chief Economist at USTR
informed me that only strong currencies influence the price of
exports. However, both strong growth and strong currency
influence the pace.
Para. 1, sent. 6; Mr. Walters also suggests deleting this
entire sentence. I concur, since the 11am news summary featured
an item that says, and I quote, "American workers' productivity
in 1990 plunged at its sharpest rate since the last recession,
marking the first time in a decade that productivity has fallen
two years in a row.
Para. 2, sent. 1; Insert "Operation" before "Desert Storm".
Para. 3, sent. 1; Change "don't" to "we can't".
Para. 3, sent. 2; Change "business" to "businesses"
PAGE 6
Para. 1, sent. 3; Again, lowercase "b", and insert
"proposal".
Para. 2, sent. 2; Delete "Free movement". Americans have
not had free movement for the last 200 years (i.e. slavery,
segregation, etc.). With all the hullabaloo about the Civil
Rights Act veto, I think we should cut it.
Para. 2, sent. 3; Change "America's" to "America has".
Para. 4, sent. 2; Change to "God bless the troops in the
Gulf, and the United States of America."
*** END ***
ACKNOWLEDGEMENTS
Secretary Nicholas Brady
Raymond Price, President of the NY Economic Club
-- There are a number of corporate CEOs, etc. who are on the
lower and upper dais, as well as on the podium with the
President. They are too numerous to mention individually. See
the attached list.
SENT BY:Xerox Telecopier 7020 ; 2- 4-91 ; 2:50PM ;
2023951155-
4562758;# 3
NEW YORK, NEW YORK
New York Hilton Grand Ballroom
Address Economic Club of New York
Dais Diagram
Wednesday, February 6, 1991
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
Podium
1 2 3 4 5 6 7 8 9 10
11 12 13 14 15 16 17 18 19 20
Audience
Lower Dais
1.
Mr. Peter R. Scanlon, Chairman, Coopers& Lybrand
2.
Mr. Dwayns O. Andreas,Chairman, Archer Daniels Midland Company
3.
Mr. Henry Kaufman, President, Henry Kaufman & Company
4.
Mr. Daniel P. Tulley, President, Merrill Lynch & Company
5.
Mr. Harold Burson, Chairman, Burson-Marstaller
6.
Secretary Nicholas Brady, Secretary of the Treasury
7.
Mr.David Rockefeller, The Rockefeller Group
8.
Mr. V. Araskog, Chairman, ITT Corporation
9.
THE PRESIDENT
10.
Mr. Richard A. Voell, President, The Rocksfeller Group and Chairman,
The Economic Club of New York
PODIUM
11.
Mr. Peter G. Peterson, Chairman, The Blackstone Group
12.
Mrs.Bush
13.
Mr. John C. Whitehead, Chairman, AEA Investors
14.
Mr. Dennis Weatherstone, Chairman, J.P. Morgan & Company, Inc
15.
Mr. John F. Welch, Chairman, General Electric Company
16.
Mr. David Hartman, President,Rodman Downs Ltd.
17.
Mr. Martin S. Davis, Chairman, Paramount Communications
18.
Mr. Richard Gelb. Chairman, Bristol-Myers Squibb Company
19.
Mr. Donald B. Marron, Chairman, PaineWebber Group Inc.
20.
Mr. John Brademas, President, New York University
UPPER DAIS
21.
Mr. Raymond K. Price, President, The Economic Club of New York
22
Mr. John W. Johnstone, Jr, Chairman, Olin Corporation
23.
Mr. David R. Baker, Partner, Jones, Day, Reavis & Pouge
24.
Mr. Robert Van Buren, Chairman, Midlantic Corporation
25.
Mr. Lawrence A. Weinbach, Managing Partner-Chief Executive, Arthur-Anderson & Co.
26.
Mr. John Gutfreund, Chairman, Solomon Inc.
27.
Mr. R. J. Ventres, Chairman, Borden, Inc.
28.
Mr. Lenoard Garment, Partner, Dickstein, Shapiro, & Morin
29.
Mr.E. Gerald Corrigan, President, Federal Reserve Bank of New York
30.
Mr. Joni L. Nelson, Partner, Rogers & Wells
31.
U.S.S.S.
32
U.S.S.S.
33.
Mr. Robert G. Schwartz, Chairman, Metropolitan Life Insurance Company
34.
Mr. Thomas S. Johnson, President, Manufactures Hanover Trust Company
35.
Mr. Edward L. Honnessy. Jr, Chairman, Allied-Signal, Inc.
36.
Mr. G. G. Michelson, Senior Vice President, R.H. Macy & Co.
37.
Mr. Michael L Sovern, President, Columbia Univeristy
38.
Mr. Walter V. Shipley, Chairman, Chemical Banking Corp.
39.
Mr. John A. Pancerri, Chairman, The Manhattan Saving Bank
40.
Mr. Edward J. Sawicz, Chairman, Discount Corporation of New York
41.
Mr. Leon Heas, Chairman, Amarada Hear Corporation
42
Mr. Landon Hilliard, Partner, Brown Brothers Harriman & Co.
Staffed for 3pm
McNally/Blymire
Feb. 1, 1991
Draft Two (B:ECON-NYC)
PRESIDENTIAL REMARKS: ECONOMIC CLUB OF NEW YORK
NEW YORK HILTON, NEW YORK CITY
WEDNESDAY, FEB. 6, 1991, 8:30 P.M.
Thank you,
.
And thank you, each of you -- not for
standing up to greet me -- but for standing up for all those
fighting against aggression tonight in the Persian Gulf -- and
especially -- the fighting men and women of the U.S.A. III
This year marks a defining hour -- a moment of truth -- for
this generation, for this country, for the United Nations itself.
We were patient. We were cautious. We were slow to anger.
But when the moment of truth came, America and the world did the
right thing.
We said the occupation of Kuwait would not stand.
And three weeks ago tonight, at just about this time, we
announced that the liberation of Kuwait had begun. 111
Three weeks ago tonight, allied forces moved to end a
conflict we did not seek and did not begin. But ladies and
gentlemen -- it's one we and our allies do intend to finish. III
Tonight we are on course and on schedule. Mission by
mission, hour by hour, Iraq's capacity to wage war is being
systematically destroyed by American and Coalition forces.
The road to real peace will be long and tough. But we will
prevail. And when we do, we will have before us a historic
opportunity. From the confluence of the Tigris and Euphrates
-- Bob Hutchings
5732
where civilization began -- civilization can begin anew. We can
build a better world -- a new world order.
III
Intentence
Hutchinge
sounds like were
hated
going to nike the
place & make them
start over
THE WHITE HOUSE
WASHINGTON
Tonight, the world is united by shared commitments, shared
interests, shared hopes. Tonight, our efforts will determine the
kind of legacy we bequeath our children, the kind of world they
will live in. And so tonight, let us re-dedicate ourselves to
the ideals in which our troops so resolutely believe. Because in
the final analysis, America and her partners will be measured not
by how we wage war -- but how we make peace.
Inmy sou.
TXXXXXXX XXXXX
future." And shaping the future is a job that begins at home.
Long-term growth is key to quality of life in America's
families, quality of decency in America's communities, and to
quality of leadership in America's special role as the world's
leading diplomatic, cultural, and economic power.
X
Despite present obstacles, we meet in an era of sustained
X
and unprecedented growth. It began almost nine years ago -- the
longest peacetime expansion in American history. Working
Stu
x
together, we created millions of new jobs, and cut both interest
9.4
rates and inflation in half a triumph driven by the energies
of the most dynamic and diverse private economy on Earth.
Against this background, the events of 1990 served to remind
us that even a fundamentally healthy economy faces the risk of
temporary disturbances and short-term setbacks. When Iraq
invaded Kuwait in August 1990, it was a shock to the world's
conscience. Business and consumer confidence fell. Oil prices
rose. Taken together, this produced a very real blow to an
economy that had already slowed.
THE WHIT5 HOUSE
WASHINGTON
But make no mistake: The downturn in the U.S. economy in
the latter part of 1990 does not signal any decline in its
50th
XXX
fundamental, long-term health or basic vitality. America is home
X
to the largest, most productive economy on Earth. America is a
"can do" nation. And today, America is on the road back.
My Administration's economic policies are designed to not
only mitigate the current downturn -- but also strengthen the
foundation for a solid recovery and the highest possible rate of
sustained economic growth. I described the three pillars of that
sm
foundation in my State of the Union Address: Encouraging
Y
economic growth; investing in the future; and giving power and
opportunity to the individual. III
Encouraging economic growth means reducing Federal borrowing
soll
-- by reducing Federal spending now. That's why XX we sent Congress
a Budget that holds spending growth below the rate of inflation.
And that's why the budget law was armed with real teeth -- "pay-
as-you-go" provisions with enforceable spending caps -- aimed at
cutting the growth of debt by nearly $500 billion.
We must also fuel economic growth by providing incentives to
promote private savings. That means tax-free family savings
P.3.4
accounts; penalty-free withdrawals for. first-time home buyers;
hes
and yes -- a reduced tax for long-term capital gains. III
We must also renew our investments in America's future.
That means investing in the education and safety of our kids.
Investing in the infrastructure of our financial and transpor-
tation systems. Investing in high technology and in space -- to
THE WHITE HOUSE
WASHINGTON
the Moon and Mars and beyond.
The Budget we sent to Capitol Hill includes record amounts
for research and development, one of the most important
sou
investments we can make in the long-term economic and military
p.4
strength of our Nation. Our Budget also recognizes that
government must help translate the results of basic research into
the generic technologies that strengthen our industries and
improve our lives. III But our most important investment isn't
in machines -- it's in the people they're designed to serve.
Together with the Nation's Governors, my Administration has
launched a comprehensive effort at reform and restructuring,
aimed at producing an educational renaissance. III
We've still got a long way to go. But don't sell our kids
short.
As one observer said of the troops manning Patriot
sounder Trutching was the
missiles in the Gulf: "In one day, they wiped out the idea that
young Americans are not smart enough for the 21st century."
\\\
Investing in the future also means a financial system that
is both safe and profitable -- a world-class financial system for
a world-class economy. The banking reform plan we unveiled
THE
Steve
yesterday puts greater reliance on the X discipline of the
X
marketplace. By allowing non-banks to invest in banking, it
provides a fresh infusion of capital. By permitting nationwide
banking, we can withstand regional downturns and provide
X
economies of scale. And product diversification will provide
greater competition, better service, and decreased risk.
The challenges ahead are great. But thanks to all these
THE WHITE HOUSE
WASHINGTON
efforts, by any historical standard, the current downturn is
expected to be mild and brief. And today in America, the bottom
line is this: While our economy may be beset by difficulty -- it
should not be beset by doubt. III
USTR
This sense of confidence is backed by the facts. The good
news runs broad and deep: Inflation's been kept under control.
The trade deficit declined for the third year in a row. Inven-
tories have been kept down, mitigating the need for production
cuts to work off excess inventory. Because our major trading
export notime
partners are seeing strong growth and strong currencies, the
USTR
price of U.S. exports on world markets will remain low --- meaning
Torie
the pace of U.S. exports will continue to set record highs.
Clarke 395-3357 3357
Productivity in manufacturing continues its impressive growth.
Even oil prices have fallen substantially since their peaks
in October, especially since the start of Desert Storm. And in
Walters
this way, the first-rate performance of American and Allied
3583
CEA
troops has already helped to preserve the global economic
David
prosperity so crucial to achieving real peace.
Spetrino
395-7280
And don't forget another underlying strength: The flexi-
bility of America's free market economy enables it to adapt to
challenges and to make the most of new opportunities. Let me
give you one example: When the "Revolution of '89" suddenly
From?
transformed a continent, American business stood ready. G.E.'s
x
Jack Welch stepped in with a $150 million joint venture with
Tungsraum in Hungary. Marriott launched a major joint venture
with LOT, the Polish airline, for a hotel-office complex in
XX XX X 6 X X + x
central Warsaw. And Bell Atlantic and U.S. West have begun an
$80 million telecommunications venture in Czechoslovakia.
Four decades ago, the Marshall Plan helped build XXX a West
European zone of prosperity and security that greatly benefitted
the United States. Together with our West European partners, we
can now extend this success to create a Europe whole and free --
an entire continent of prosperity and stability that fulfills the the
X
proposal
vision of the Marshall Plan. And in the new Budget, my Adminis-
tration is committed to help and committed to lead: I asked
Bob
Congress for [$470 million] in new grant assistance for Eastern
Hutchings
Europe --- a 50 percent increase over last year's initiative.
History is moving decisively in favor of freedom -- thanks,
in large part, to American perseverance. The touchstones of the
modern world -- which the emerging democracies are now striving
for -- are free markets, free movement, free speech, and free
elections. America's lived by these tenets for over 200 years.
They have given us both our power and our purpose.
That is why America and our allies are going to prevail in
the Gulf. And that is why America and our partners are going to
prosper in the years to come. Our best days are before us. And
I can assure you -- America, and the world -- that we have not
come through 215 years of history, fighting for principle and
doing the hard work of freedom, only to back down now. III
Thank you. God bless our troops in the Gulf and And God bless
the
the United States of America.
#
#
#
White House News Summary
Monday, February 4, 1991 -- 1
11:00 A.M. NEWS UPDATE
BUDGET (Bud Newman, UPI) -- President Bush sent Congress a $1.4
trillion 1992 budget that had record-high deficits, $4.5 billion
less in Pentagon spending despite the war, a $3 billion Medicare
cut and more money for children, education, parks and highways.
Bush's budget for the federal fiscal year that begins Oct. 1
proposed total spending of $1.44 trillion, a record deficit of
$318.1 billion this year and $280.9 billion in 1992 -- assuming
spending caps imposed last year are adhered to -- and about $2
billion in higher taxes over the next five years. It proposed
transferring about $15 billion in federal programs to the states
and set off what Bush termed "a competition for resources" among
various federal programs thanks to the spending caps imposed by
last year's historic budget accord. Rep. Panetta called that
proposed transfer "warmed over new federalism" and "buffet-style
revenue sharing."
(Jim Luther, AP) -- President Bush asked Congress to boost
incentives for saving by cutting taxes on capital gains, creating
a tax break for long-term accounts and allowing IRA withdrawals for
some homebuyers. His proposed budget calls for no general tax
increase. It includes more targeted tax reductions than tax
increases. In a written message, Bush said his savings incentives
would enhance the nation's potential for long-term growth.
(UPI) -- The White House proposed putting an additional $2
billion into public feeding programs for fiscal 1992, including
enough money to add 175,000 people to the so-called WIC program.
The increase in funding also would allow the government to meet
increased demand for food stamps.
DEFENSE BUDGET (Reuter) -- Faced with pressure to cut arms spending
despite the war and new strains in U.S.-Soviet relations, President
Bush asked Congress for a $295.2 billion 1992 defense budget, $3.7
billion less than current spending. The proposal does not include
funds for rising U.S. costs of the war. But the Pentagon will ask
Congress this month for an addition to the current $298.9 million
budget to help pay that cost. While it seeks reductions in
programs, it also calls for a major increase to $4.6 billion next
year for Star Wars.
FUNDING TO STATES/GOVERNORS (AP) -- Democratic and Republican
governors praised President Bush's plan to transfer billions of
dollars in domestic programs to the states, but expressed concern
about whether Congress would go along. "I think the President is
sincere in terms of wanting to give that degree of flexibility" to
the states, Gov. Wilder said on ABC's "Good Morning America." "The
question now is whether Congress will go along with it." Gov.
Wilson stressed that "we have to manage, Congress doesn't. But
typically, Congress likes to micromanage." Gov. Edgar of
Illinois said the plan "gives us a lot better ability to manage our
own responsibilities.
BOMBINGS ON BAGHDAD (Baghdad/Reuter) -- Baghdad came under heavy
bombardment overnight from three waves of allied aircraft which
apparently included B-52 bombers. An Iraqi military spokesman said
on Baghdad Radio that nine allied aircraft had been shot down in
the last 24 hours.
-
White House News Summary
Monday, February 4, 1991 -- 2
ISRAELI RESTRAINT (Jerusalem/Reuter) -- Prime Minister Shamir said
Israel was eager to fight Iraq but was staying out of the war to
ensure victory for U.S.-led forces. "Our people want to fight very
much," Shamir's office said he told visiting New York City Mayor
Dinkins. "But we are taking into account the complex situation and
don't want to complicate it even more because our goal is the
victory of the coalition," the Israeli leader said.
RAFSANJANI (Nicosia/AP) -- Iran's President Rafsanjani offered to
meet Saddam for talks on ending the war, and said he was willing
to resume official contact with Washington in the interests of
peace.
(Athens/UPI) -- President Rafsanjani said he presented ideas
on peace to Saddam last week, but he found the Iraqis to be still
inflexible, Iran's official Islamic Republic News Agency reported.
IRAN/KUWAITI AMBASSADOR (London/Reuter) -- Kuwait's ambassador to
Britain, Ghazi al-Rayes, said Iran had promised to stay out of the
war, and that any breach of this neutrality would be "devastating."
WORKER PRODUCTIVITY (AP) -- American workers' productivity in 1990
plunged at its sharpest rate since the last recession, marking the
first time in a decade that productivity has fallen two years in
a row, the government said. Meanwhile, the Labor Department's
report showed that during the final three months of 1990, the
nation's businesses trimmed the working hours of their employees
at an annual rate of 2.7 percent -- the largest falloff since the
depths of the 1981-82 recession.
###
THE WHITE HOUSE
THE PRESIDENT HAS SEEN
WASHINGTON
91 FEB -5 AM 8: 08
February 5, 1991
MEMORANDUM FOR THE PRESIDENT
THROUGH:
DAVID DEMAREST
AD
FROM:
EDWARD E. McNALLY
SUBJECT:
ADDRESS TO THE ECONOMIC CLUB OF NEW YORK
I. SUMMARY
On Wednesday, February 6, at 8:30 p.m., you are scheduled to
address approximately 2,400 C.E.O.'s and other attendees at a
dinner hosted by the Economic Club of New York.
II. DISCUSSION
This address (15 minutes, on teleprompter) presents an
upbeat view of the economy, building on three recent events:
your State of the Union Address, the Administration's budget
proposal, and the new banking package. (The draft also takes
note of the upcoming release of the Administration's National
Energy Strategy, scheduled for later this month.)
The attached draft was prepared with guidance from General
Scowcroft, Chairman Boskin, Roger Porter, Dr. Bromley, and the
Departments of Treasury and Commerce and OMB.
george bush
I think we need some mention about the
deficit
large and horrible though
it is maybe a sentence or 2
at "A" on ppage 3
THE PRESIDENT McNally/Blymire HAS SEEN SEEN HAS PRESIDENT THE
Feb. 4, 1991
Draft Three (B:ECON-NYC)
PRESIDENTIAL REMARKS: ECONOMIC CLUB OF NEW YORK
NEW YORK HILTON, NEW YORK CITY
WEDNESDAY, FEB. 6, 1991, 8:30 P.M.
Thank you,
.
And thank you, each one of you -- not
for standing up to greet me -- but for standing up for all those
fighting against aggression tonight in the Persian Gulf -- and
especially -- the fighting men and women of the United States of
America.
This year marks a defining hour -- a moment of truth -- for
this generation, for this country, and for the United Nations
itself. We were patient and we were cautious. But when the
moment of truth came, America and the world did what was moral,
what was just, and what was right.
We said the occupation of Kuwait would not stand.
And three weeks ago tonight, at just about this time, we
announced that the liberation of Kuwait had begun. 111
Three weeks ago tonight, allied forces moved to end a
conflict we did not seek and did not begin. But ladies and
will?
gentlemen -- it's one we and our allies do intend to finish.
Tonight we are on course and on schedule. Mission by
mission, hour by hour, Iraq's capacity to wage war is being
systematically destroyed by American and Coalition forces.
The road to real peace will be long and tough. But we will
prevail. And when we do, we will have before us an historic
opportunity. From the confluence of the Tigris and Euphrates --
2
where civilization began -- civilized behavior can begin anew.
We can build a better world -- a new world order.
Tonight, the world is united by shared commitments, shared
interests, shared hopes. Our efforts will determine the kind of
legacy we bequeath our children, the kind of world they will live
in. And so, let us re-dedicate ourselves to the ideals in which
our troops so resolutely believe. Because in the final analysis,
America and her partners will be measured not by how we wage war
-- but how we make peace.
I said in my State of the Union Address that "We are the
Nation that can shape the future." And shaping the future is a
job that begins at home: Long-term economic growth is central to
quality of life for America's families, quality of decency for
America's communities, and to the quality of leadership America
can bring in its special role as the world's leading diplomatic,
cultural, and economic power.
Just over eight years ago, the longest peacetime expansion
in American history began. Working together, we created millions
of new jobs, and cut both interest rates and inflation in half
-- a triumph driven by the energies of the most dynamic and
diverse economy on Earth.
Against this background, the events of 1990 served to remind
us that even a fundamentally healthy economy faces the risk of
temporary disturbances and short-term setbacks. For example,
when Iraq invaded Kuwait in August 1990, it was a shock to the
world's conscience. Business and consumer confidence fell. Oil
GEORGE BUSH
SOmewhere in here can we reply
to the argument made in todays
WSJ that our budget was much higher
than Reagan's in terms of spend-
as % of GNP
(Ed page 2-5-)
3
prices rose. Taken together, this produced a very real blow to
an economy that had already slowed.
But make no mistake: The current recession does not signal
any decline in the fundamental, long-term health or basic
vitality of our economy. America is a "can do" nation. America
is home to the largest, most productive economy on Earth.
ON
My Administration's economic policies are designed to
strengthen the foundation for a solid recovery and the highest
possible rate of sustained economic growth. I described the
the
three pillars of that foundation in my State of the Union
Address: Encouraging economic growth; investing in the future;
and giving power and opportunity to the individual. III
Encouraging economic growth means reducing federal borrowing
-- by cutting the growth of federal spending now. That's why we
sent Congress a budget proposal that holds spending growth below
the rate of inflation. And that's why the budget law was armed
with real teeth -- "pay-as-you-go" provisions and enforceable
spending caps -- aimed at cutting the growth of debt by nearly
half a billion dollars.
To ensure economic growth, this Administration will also
redouble its efforts to weed out counter-productive government
regulations. The market must be allowed to work without
unnecessary federal intervention. III
We must also fuel economic growth by providing incentives to
promote private savings. That means tax-free family savings
Can me
4
accounts; penalty-free I.R.A. withdrawals for first-time home
buyers; and yes -- a reduced tax for long-term capital gains.
We must also renew our investments in America's future.
That means investing in the education and safety of our children.
Investing in the infrastructure of our transportation system.
Investing in reforms for the financial services system.
Investing in high technology and in space -- to the Moon and Mars
Put
and beyond.
in
has been well recared.,IT
Total
The budget proposal we sent to Capitol Hill includes record
R.D
amounts for research and development, one of the most important
Dollars 77
investments we can make in the long-term economic and military
strength of our Nation. It also recognizes that government must
help translate the results of basic research into the generic
technologies that strengthen our industries and improve our
lives. III But our most important investment isn't in machines
-- it's in the people they're designed to serve. Together with
we have
the Nation's Governors, my Administration has launched a
comprehensive effort at reform and restructuring, aimed at
producing an educational renaissance. III
We've still got a long way to go. But we won't sell our
kids short. As one observer said of the troops manning Patriot
missiles in the Gulf: "In one day, they wiped out the idea that
young Americans are not smart enough for the 21st Century." III
Investing in the future also means a financial system that
is both safe and profitable -- a world-class financial system for
a world-class economy. The banking reform plan we unveiled
5
yesterday puts greater reliance on the discipline of the
marketplace. By allowing non-banks to invest in banking, it
provides opportunities for a fresh infusion of capital. By
permitting nationwide banking, we can withstand regional
downturns and provide economies of scale. And product
diversification will provide greater competition, better service,
and decreased risk.
The challenges ahead are great. But because of all these
efforts, by any historical standard, the current downturn is
expected to be mild and brief. And today in America, the bottom
line is this: While our economy may be beset by difficulty -- it
should not be beset by doubt.
A healthy sense of confidence is backed by the facts.
Inflation has been kept under control. Interest rates are
beginning to decline further. The trade deficit declined for the
third year in a row. Inventories have been kept down, reducing
the need for production cuts to work off excess inventory.
Because our major trading partners are seeing relatively strong
growth, and the price of U.S. exports on world markets remains
low, the pace of U.S. exports will continue to set record highs.
Even oil prices have fallen substantially since their peaks
what
in October, especially since the start of Operation Desert Storm.
way
And in this way, the first-rate performance of American and
Allied troops has already helped to preserve the global economic
prosperity so crucial to achieving real peace.
Federal Deficit missing!!!
6
Later this month, the Administration will release its
National Energy Strategy. The strategy will propose federal,
state and private sector initiatives to increase energy
efficiency and conservation. It recognizes the need for
sustained economic growth and creating a clean, safe environment.
A key goal of the Administration strategy is to reduce our
vulnerability to foreign oil supply disruptions. Some, however,
will suggest that enhancing our energy security is not enough,
and that we should embark upon drastic measures designed to
achieve total energy independence. Let me tell you: We are a
long way from total energy independence. Unwise and extreme
measures would only hurt American consumers, American jobs and
American industries. 111
There's no doubt we must begin reducing our energy
vulnerability now. That will require a broad and balanced array
of actions -- conservation and efficiency measures, new
production steps, deregulatory actions, and investments in
promising energy technologies. This is the kind of we prudent,
balanced, and comprehensive approach my Administration will Eakeing
And finally, don't forget another underlying strength of our
economy: The flexibility of America's free market system. To
preserve this flexibility, we must keep our markets open and hold
government restrictions to minimum. This is not easy.
Naturally, we all want security. However, often that means
keeping out the competition. For the sake of future generations
7
of Americans, we must level the playing field, so that
international trade is free -- and fair.
That is what we are doing in the Uruguay Round of trade
negotiations -- trying to lower barriers to the free flow of
goods and services around the world. That is also what we will
seek in the negotiations we will launch this year with Mexico and
Canada to create a North American Free Trade Area. And my
Enterprise for the Americas Initiative is intended to extend the
benefits of flexibility throughout the Western Hemisphere.
To build a new, peaceful world order, we must also secure
the democratic triumphs of the past year. I am thinking
especially of the "Revolution of '89." The new democracies in
central and eastern Europe inspire us all with their commitment
to free societies and free market economies, but they face
daunting obstacles from the Communist past, as well as severe new
problems brought on by lost markets and higher oil prices.
My Administration is committed to help and committed to
lead: Despite the burden we are bearing in the Gulf, I have asked
Congress for $400 million in new grant assistance for eastern and
central Europe.
Four decades ago, the Marshall Plan helped build a West
European zone of prosperity and security that greatly benefitted
the United States. Together with our West European partners, we
can now extend this success to create a Europe whole and free --
an entire continent of prosperity and stability that fulfills the
vision of the Marshall Plan.
on, it
sarvo in is $111 thin Adhor
T our need to spend
-S&L bailout
grew thrust t the 80's
where to deal ul it
now
ever- 9 need for spending
in SS medicale
&
health costs
ontof
all experditures are
going up.
- Darman conspracy
13
8
With their great human potential and commitment to market
economic reform, central and eastern European countries offer
real opportunities for U.S. trade and investment. I urge
American business to seize these opportunities, as many are
doing. G.E.'s Jack Welch weighed in with a $150 million joint
venture with Tungsram in Hungary. Union Pacific's Drew Lewis
stepped up to the plate with an impressive effort to help Poland
modernize its railroads. And Bell Atlantic and U.S. West have
begun an $80 million telecommunications venture in Prague.
History is moving decisively in favor of freedom -- thanks,
in large part, to American ideals and perseverance. The
touchstones of the modern world -- which the emerging democracies
are now striving for -- are free markets, free speech, and free
elections. America has lived by these tenets for over 200 years.
They have given us both our power and our purpose.
That is why America and our allies are going to prevail in
the Gulf. And that is why America and our partners are going to
prosper in the years to come. Our best days are before us. And
I can assure you -- America, and the world -- that we will
continue to fight for principle. We will continue to do the hard
work of freedom.
Thank you. God bless the troops in the Gulf. And God bless
the United States of America.
#
#
#
1991 - 318 bill debt
by 1995, b/c of budgetary
reformsenacted in FACC (90,
the eliminated def will be virtually
reason its 50 T is b/c of #
of unexpected events
incl- - situ. in Gulf
loss in conf. (consures)
oct prices $ A
after 8/2
everything collapsed
THE WALL STREET JOURNAL THURSDAY FEBRUARY 7, 1991 A3
Bush Predicts
have avoided travel out of fear of ter.
proceeding smoothly and that he hasn 4g
rorism.
nored domestic needs.
"I think what's needed is a boost of con-
Asked whether U.S. Soviet trade rela-
That Recession
fidence, Mr. Bush said. understand
tions can be improved, Mr. Bush said,
that some people are afraid to travel'be
'When we see repression in the Baltics, it
cause of security
We ve got good secu-
is very hard to have business as usual."
rity, we've got good intelligence. And I
He said Moscow's crackdown on independ-
Will Be Brief
think the American people should have
ence movements in the Baltic republics of
confidence in travel and tourism. And I
Lithuania, Latvia and Estonia "is a big
think people should come here with a re
problem, and it concerns me deeply, and it
newed sense of confidence.
concerns the American people deeply."
President Seeks to Reassure
On other issues, Mr. Bush took pains to
At the same time, he defended his deci-
U.S. Business Leaders;
reassure the public that the war effort is
Please Turn to Page A6, Column 5
Defends Japan, Germany
President Attempts
To Reassure Leaders
By MICHEL MCQUEEN
Staff Reporter of THE WALL STREET JOURNAL
NEW YORK-President Bush predicted
Of American Business
the recession will be over by the middle of
the year, saying, "in a couple of quarters
Continued From Page A3
we'll come out of this, and then we' have
sion to maintain ties with the Soviet Union
a robust economy."
and China. Mr. Bush said the "new world
In remarks to the Economic Club of
order' he seeks can only be possible with
New York, a nonpartisan group of senior
dialogue with Moscow and Beijing. And he
executives, Mr. Bush also defended Japan
said the Soviets have been "steadfast" in
and Germany, nations that many in the
support of the anti-Iraq alliance.
U.S. have accused of contributing too little
In defending Japan and Germany, the
to the Persian Gulf war. And he warned
president cited Bonn's recent pledge to do-
that U.S. economic relations with the So-
nate $5 billion more to the war effort and
viet Union won't improve so long as Mos-
Japan's pledge of an additional $9 bil-
COW is cracking down on independence
lion.
movements in the Baltics.
"Those are very generous contributions
Most of Mr. Bush's speech was devoted
in my view-or appropriate contributions,"
to reassuring his business audience about
he said. Noting constitutional and domestic
the economy. "I think we've got a real op-
political restraints against direct military
portunity before half the year is over to
participation by those countries, he added:
start seeing a recovery, to see us come
"I'm hoping that the world will see that
back on a growth pattern, see us resume
they are pitching in and will continue to
our economic vigor," he said. He added
pitch in."
that he hopes interest rates will decline
Mr. Bush said his administration is tak-
further.
ing steps to deal with the recession, citing
But Mr. Bush also vowed to resist what
his continued advocacy of a capital gains
he called "pump-priming," or "make-
tax cut, development of a national energy
work" programs to stimulate the economy
strategy and a set of proposals for the
through government spending. He said
banking industry introduced Tuesday.
some aspects of the recession are "psycho-
He said some problems in the banking
logical," and he urged consumers to show
sector might be attributed to overzealous
more confidence in the economy. In partic-
regulators. "I think some of the regulators
ular, he sought to reassure people who
in the past got overzealous, and I think
that scared some of the banks," Mr. Bush
said. But he added: "Just to be fair about
it, I think some of the banks made some
bad loans."
Buch VOWS recumption of 'robust economy'
the third year in a row. Inventories
By Frank J. Murray
have been kept down, reducing the
THE WASHINGTON TIMES
need for production cuts to work off
NEW YORK - President Bush
excess inventory.
The pace of U.S.
painted a rosy picture of imminent
exports will continue to set record
economic growth and prosperity
levels.
Despite prewar predic-
and minimized the import of the re-
tions that a Gulf war would send oil
cession last night as he began dem-
up to $80 a barrel, oil prices have
onstrating that the Persian Gulf war
fallen substantially since their
has not consumed him.
peaks in October, especially since
He predicted the recession would
the start of Operation Desert
end "before half a year is over."
Storm."
"I predict in a couple of quarters
For his proposed budget, Mr.
we'll come out of this and we'll have
Bush plugged a North American
a robust economy," Mr. Bush told U.S.
free trade proposal, and a banking
industrial leaders in his first jour-
reform plan that he said would
ney unrelated to the war since Dec.
strengthen the foundation for a solid
8.
recovery but offered no measures of
"While our economy may be beset
time or money.
by difficulty, it should not be beset
He said federal borrowing must
by doubt," he said.
be cut further "by cutting the
"Make no mistake: The current
growth of federal spending." The
recession does not signal any de-
president said his budget has pro-
cline in the fundamental long-term
vided a start by holding spending
health or basic vitality of our econ-
growth below inflation, despite its
omy," he said to guests at the Eco-
need to borrow one in every five of
nomic Club of New York who had
its $1.45 trillion. He termed the re-
paid $324,000 at $1,350 per table.
sulting $280.9 billion deficit unac-
While emphasizing the impact of
ceptably high.
fluctuating oil prices on his strat-
During a question-and-answer pe-
egies, Mr. Bush moved to lower the
riod after his speech to the mostly
expectations of the corporate execu-
Fortune 500 executives, Mr. Bush
tives about his forthcoming energy
also elaborated more than ever on
strategy, scheduled for release this
what he calls the "new world order"
month after two years of backstage
among nations, which he has called
battles.
the cornerstone of resisting Iraq's
He said it would "reduce our vul-
aggression.
nerability to foreign oil supply dis-
"My vision of a new world order
ruptions," but he rejected calls to
Photo by Don Preisler/The Washington Times
foresees a United Nations with a re-
achieve total energy independence.
President Bush and his wife, Barbara, walk to the Marine One helicopter on the White House South Lawn for a trip to New York to give a major speech.
vitalized peacekeeping function," he
He called the steps to do that
said.
"unwise and extreme."
He said a continuation of im-
"The reality is that we are a long
Iraqi President Saddam Hussein
He will go again to Camp David,
Last night's speech made brief
optimism that even cited a silver lin-
proved relations with the Soviet
way from total energy indepen-
will not hold him hostage at the
as he has every weekend since
mention of the war but was confi-
ing to the war.
Union, which recently has used
dence," Mr. Bush said.
White House. Tonight he attends his
Christmas, and next weekend Mr.
dent of victory. "From the conflu-
"I believe that by standing up to
force against the breakaway Baltic
The trip with Mrs. Bush to a
first purely political event in
and Mrs. Bush make their mid-
ence of the Tigris and Euphrates,
aggression in the Gulf, we are guar-
republics, would be important in the
black-tie dinner of the New York
months, a fund raiser at Washing-
winter pilgrimage to their home in
where civilization began, civilized
anteeing the future security and sta-
new world order.
club - rush-hour gridlock and all -
ton's Madison Hotel for Arizona gu-
Kennebunkport, Maine.
behavior can begin anew," Mr. Bush
bility of that area that is so vital to
He added: "We left China out of
put action into his oft-repeated
bernatorial candidate Fife Syming-
He had been scheduled to be fin-
promised about 2,400 dinner guests
global economic prosperity," Mr.
the equation. We ought not to do
creed that "life goes on," even as the
ton. He is back to signing
ishing a trip to Moscow and other
before changing the subject to
Bush said.
that."
president wrestled with an immi-
proclamations for Heart Month, re-
countries en route, but canceled that
money.
He listed facts that he said jus-
Saying he was offended by human
nent decision on launching a Gulf
ceiving Boy Scouts, jogging and jok-
Jan. 28 with a statement that said,
"In the final analysis, America
tified his confidence: "Inflation has
rights abuses, Mr. Bush said, "I think
ground invasion.
ing in public, and limited travel al-
"The Gulf war makes it inappropri-
and her partners will be measured
been kept under control. Interest
it is in the interest of the United
While balancing concern for the
though schedules now are marked
ate for President Bush to be away
not by how we wage war but how we
rates are. beginning to decline fur-
States to have China in the new world
ther
The
trade
deficit
declined
for
order"
Dush NEW and
President Skips Over Difficulties in N.Y. Economic Pep Talk
2/7
did in his State of the Union address
By Dan Balz
sures similar cooperation between
Washington Post Staff Writer
on Jan. 29, Bush sought to boost
the superpowers at the United Na-
consumer confidence.
tions.
NEW YORK, Feb. 6-President
"While our economy may be be-
Bush also said he believed U.S.
Bush offered the country an eco-
set by difficulties," he said, "it
leadership in the gulf war would pay
nomic pep talk here tonight, pre-
should not be beset by doubt." He
dividends in future economic, rela-
dicting that the current recession
asserted that his own confidence
tions with Germany and Japan. He
would be "mild and brief" and add-
about the future "is backed by the
said he was grateful for the financial
ing that what is needed most now is
facts." He pointed to declining in-
support pledged by the two nations
"a boost in confidence."
terest rates, oil prices that have
to Operation Desert Storm and to
The president also said the Per-
fallen since the outbreak of the gulf
frontline nations suffering econom-
sian Gulf War would not put too
war three weeks ago and an infla-
ically.
much additional burden on the
tion rate that has been 'kept under
But he said U.S. actions in the
economy and suggested, that suc-
control."
gulf were also helping the German
cessful end to the war would help
He predicted that the recession
and Japanese people, and said he
assure term economic growth
would end "in a couple of quarters"
hoped those people would see "a
here and around the world
to be followed by robust econo-
United States that has a vastly re-
The road to real peace will be
my
stored credibility' that would make
difficult-long, and tough,' Bush
As Bushispoke, anti-war demon-
trade and other economic relations
said, But he argued that "by stand
strators that police estimated at
more fruitful once the war ends.
ing up to aggression in the gulf, we
about 1,000 rallied outside chanting
Because we've decided to bite
are guaranteeing the future secu-
slogans. Three were arrested on
off this tough assignment.
we
rity and stability of that area, that is
charges of disorderly conduct.
will
have
some.
persuasiveness
SO vital to global economic prosper-
Bush said his new budget would
that will lead to more harmonious
ity.
help assure long-term economic
trading relationships," he said.
Bush repeated his belief that the
growth by maintaining a tight rein
On military spending, Bush said
allied campaign in the gulf is "on
on government spending and
he was prepared to shrink the de-
course and on "schedule," adding
pledged, as other presidents before
fense budget but not as much as
that "hour by hour, Iraq's capacity
him have done, that the federal def-
some members of Congress are ad-
to wage war is being systematically
icit would be virtually eliminated in
vocating. He said the performance
destroyed by American and coali-
several years.
of high-technology weapons in the
tion forces."
But he barely touched on the rec-
gulf war assures increased reliance
He pledged that while he could
ord federal deficit expected for the
on such weapons in the future. "We
not predict when the war would
current fiscal year-$318 billion-
are going to have a high-tech, a
end, it would not drag on indefinite-
or on the fact his new budget pro-
highly mobile force," he said. "And
ly. "I've never been more certain of
jects a $281 billion deficit for fiscal
it ain't going to come cheap."
anything in my life," he said. "We're
1992. "True," he said, "the deficit is
Bad weather forced the president
going to win it."
high-unacceptably high. The S&L
to travel by motorcade from the
Speaking to the Economic Club of
costs, the war and the economic
airport to the speech site in mid-
New York in one of the regions
decline haven't helped a bit." He
town Manhattan, tying up rush-
hardest hit by the current reces-
said last year's budget agreement,
hour traffic for more than an hour.
sion, the president skipped lightly
which includes caps on spending
Police cars blocked not only side
over the rising unemployment rate
and pay-as-you-go provisions, will
shrink the deficit in future years.
streets but every garage and park-
and shocks to the banking and real
Bush offered a preview of the
ing lot exit on the route, the Asso-
estate sectors, suggesting they are
only "temporary disturbances and
national energy strategy that En-
ciated Press reported.
short-term setbacks" to an economy
ergy Secretary James D. Watkins is
that is fundamentally sound.
expected to unveil soon, saying it
"We are in a recession, there's no
would reduce the vulnerability of
question about that," Bush said. But
the American economy to disrup-
he argued that the downturn "does
tions in world oil supplies.
not signal any decline in the funda-
But he sounded a defensive tone
mental, long-term health or basic
as he tried to counter critics who
vitality of our economy. America is
are predicting already that the ad-
a 'can do' nation."
ministration's plan will not go far
He blamed the decline on a series
enough to assure conservation.
of shocks generated by Iraq's inva-
"Some will argue that reducing
sion of Kuwait, which he said tipped
our energy vulnerability is not
an already weakened economy into
enough and that we should embark
a full-fledged recession. But as he
upon more drastic measures de-
signed to achieve total energy in-
dependence," he said. "The reality
is that we are a long way from total
President Plans
energy independence. We must
avoid unwise and extreme mea-
Maine Vacation
sures that would seriously hurt
American consumers, American
jobs and American industries."
President Bush, who de-
The president also urged Con-
cided to postpone the Mos-
COW summit this month be-
gress to take quick action on the
cause of the Persian Gulf
banking reforms outlined Tuesday
War, now plans to take
by Treasury Secretary Nicholas F
vacation to Maine, the White
Brady. He said the proposal would
House announced yesterday.
continue to protect depositors while
Bush and his wife, Barba-
assuring that U.S. banks can com-
ra; will go to their Kenne-
pete in today's global financial mar-
bunkport home Feb. 15 and
kets.
spend the President's Day
The president talked briefly
weekend there. He is sched-
about the shape of the world in the
uled to return on Feb. 18.
aftermath of the gulf war. Asked to
The president has made it
define what he means when he de-
a practice to spend a week-
scribes the prospect of a "new
end in Maine in February in
world order" coming out of the gulf
past years. Spokesman Mar-
war, he said he could foresee a
lin Fitzwater said Bush's
world in which the United Nations
absence from Washington
has "a revitalized peacekeeping
News Summary
OFFICE OF THE PRESS SECRETARY
THE WHITE HOUSE
WASHINGTON
THURSDAY, FEBRUARY 7, 1991
6:00 A.M. EST EDITION
INTERNATIONAL NEWS
Whitehall Explosion -- Suspected guerrillas launched a failed
mortar attack in London Thursday aimed at the 10 Downing Street
residence of Prime Minister Major, Britain's Press Association
domestic news agency said.
(Reuter)
Bush 'Absolutely Confident' War Will Be Short -- An angered
President Bush rejected accusations by Iraq that civilians have
become targets and he declared allied air strikes have used
sophisticated weapons -- once ridiculed -- to save lives. (UPI)
U.S. Plans Direct Aid To 4 Soviet Republics -- In a dramatic move
to strengthen ties to independence-minded Soviet republics, the
White House Wednesday announced plans to send medical goods
directly to Lithuania, Estonia, Latvia and the Ukraine.
(Washington Times, Washington Post)
NATIONAL NEWS
Bush Seeks To Reassure Business That Recession Will Be Brief --
President Bush assured business leaders Wednesday night the
recession will be "mild and brief" and does not signal any decline
in the nation's long-term economic health.
(New York Newsday, Washington Times, Washington Post, AP)
NETWORK NEWS (Wednesday evening)
BAKER/HILL TESTIMONY -- Secretary
Baker outlines his vision of a
INTERNATIONAL NEWS
A-1
post-war Middle East.
NATIONAL NEWS
A-11
DESERT STORM -- American fighter
planes kept up their round-the-
NETWORK NEWS
B-1
clock bombing of Iraq and Kuwait.
EDITORIALS
C-1
PUBLIC SUPPORT --- Overall support
for the war remains high, with 78%
of those polled in favor of what
is going on.
This Summary is prepared Monday through Friday by the White House News Summary Staff.
For complete stories or information, please call 456-2950.
INTERNATIONAL NEWS
WHITEHALL EXPLOSION
LONDON -- London police say a van has exploded on Whitehall,
a street filled with government offices in central London.
Witnesses say there was a large blast and a van is on fire outside
the Ministry of Defense Building
In contrast to reports that a van blew up, the BBC quotes
witnesses as saying there were three rockets fired from the back
of a van.
British Sky Television reports mortars were fired, with two
exploding and two others misfiring.
(AP)
Whitehall Explosion -- Suspected guerrillas launched a failed
mortar attack in London Thursday aimed at the 10 Downing Street
residence of Prime Minister Major, Britain's Press Association
domestic news agency said.
(Reuter)
BUSH 'ABSOLUTELY CONFIDENT' WAR WILL BE SHORT
NEW YORK -- An angered President Bush rejected accusations by
Iraq that civilians have become targets and he declared allied air
strikes have used sophisticated weapons -- once ridiculed -- to
save lives
"This is not going to be a long drawn-out situation with an
ill-defined ending," Bush said. "I'm absolutely confident of that.
I've never been more certain of anything in my life. We're going
to win it.
Bush said he was "annoyed at the propaganda coming out of
Baghdad about allies targeting civilians in their air strikes
against Iraq, contending that the use of laser-guided bombs and
other high-technology precision targeting weapons was saving lives.
"This has been fantastically accurate and that's because a lot
of money went into high-technology weaponry, these laser-guided
bombs and a lot of other things (such as) stealth technology," the
President said
Earlier, en route to New York, Bush told reporters aboard Air
Force One that he disagreed with King Hussein, who earlier
criticized the allied effort against Iraq. Hussein said it was a
war launched against all Arabs.
"I am finding that we have a major disagreement on that. It's
not true. "
Although Hussein sided with Saddam during the invasion of
Kuwait last Aug. 2, Bush has tried to soft-pedaled differences with
the Arab monarch
Asked if he still plans to offer refugee assistance to Jordan,
Bush said:
"We've tried to make clear with Jordan that we have no
argument with Jordan. I think they may make a mistake to align
themselves so closely to Saddam Hussein against the rest of the
world."
(UPI)
-
White House News Summary
Thursday, February 7, 1991 -- A-2
BUSH TELLS ASSAD IRAQI CIVILIANS, RELIGIOUS SITES NOT TARGETS
NICOSIA -- President Bush telephoned Syrian President Assad
to assure him that U.S. and allied planes were not attacking Iraqi
civilians or religious sites, Syrian state radio reported Thursday.
Bush
also
told
Assad
that the U.S. would work for a
comprehensive peace in the Middle East once the Gulf war was over,
the radio added.
"President Assad expressed his satisfaction that civilians and
religious sites were not being targeted. He said it was essential
that a just and comprehensive peace be achieved in the region after
the Gulf crisis is over," the radio said.
(Reuter)
GROUND WAR NOT FELT IMMINENT
Cheney, Powell Seek To Reassure Hill
The nation's two top military leaders, in a closed-door report
to Congress Wednesday on the three-week-old Gulf war, left a strong
impression that an allied ground offensive is not imminent, House
and Senate members said.
Secretary Cheney and Gen. Powell offered no timetable for such
an attack but assured lawmakers -- virtually all of whom said they
favor the continuation of the current bombing campaign -- that the
Bush administration is pleased with the course of Operation Desert
Storm and not eager to move the war from the sky to the ground.
"I really feel good, said Rep. Michel, after listening to the
briefing by Powell and Cheney. "There's no rush to do it."
Sen. Exon agreed. "I do not get the impression that a ground
war is imminent."
The trip to Capitol Hill by Powell and Cheney, who depart
Thursday for a Gulf visit to gauge the war's progress, came as
waves of U.S. B-52s and other bombers struck Iraqi Republican Guard
positions every three or four hours Wednesday. But allied
officials, other than suggesting Iraqi soldiers are getting little
sleep, offered scant evidence that the raids are substantially
weakening the Guard and appeared to give contradictory reasons for
the relentless bombardment
A substantial majority of Americans continues to support the
administration. A new Washington Post/ABC News poll found that 78
percent of those questioned backed the decision to attack Iraq, up
from 75 percent in a similar survey last week.
The strong support persists despite a growing expectation that
the war will not be a short one.
(Rick Atkinson, Washington Post, A1)
BRITAIN IN NO HURRY FOR LAND WAR; RULES OUT NUCLEAR RESPONSE
LONDON -- Britain, like the U.S., is in no hurry for ground
combat in the Gulf War. But unlike America, it rules out nuclear
retaliation even if Iraq uses chemical weapons.
British officials believe chemical warfare is likely, but
Prime Minister Major ruled out the use of British nuclear weapons
before the war began Jan. 17, and has continued to do so
A senior government source, speaking on condition of
anonymity, also stressed that Britain prefers to wait for air
bombardments to weaken Iraqi forces before starting combat.
"Our position on the land war is one of infinite patience,"
said the source. "We really think there is absolutely no rush
about this."
(Maureen Johnson, AP)
White House News Summary
Thursday, February 7, 1991 -- A-3
ISRAEL SAYS IRAQ'S LOSSES ARE HEAVY
JERUSALEM -- Official Israeli.sources said Wednesday that U.S.
and allied forces have destroyed about 600 Iraqi tanks and at least
one division of the elite Republican Guard has been badly mauled
in bombing raids.
According to the Israeli sources, Iraq has moved its remaining
Scud missile launchers in western Iraq to the area of Kayam, about
40 miles northwest of the H-3 military site where some of the
missiles were originally based
Israeli assessments also show that 40,000 of an estimated
300,000 tons of Iraqi ammunition stocks have been destroyed in
allied air raids.
Official sources said that the relentless bombing has caused
Iraqi commanders to disperse their stocks of ammunition from
central storage sites, making it more difficult to attack but at
the same time making it less accessible to the Iraqi units deployed
in Kuwait and southern Iraq.
(Jackson Diehl, Washington Post, A21)
BOMBING DAMAGE HARD TO ASSESS
Officials Says They Can't Tell All They Know
RIYADH -- As U.S. and allied warplanes step up the most
difficult phase of the air campaign against Iraqi forces, the
military is struggling to assess the impact of round-the-clock
raids on widely dispersed troops and supply lines on the
battlefield.
"It's much more difficult to say you've taken out 30 tanks in
the desert than to say you took out a chemical plant or a bridge,"
said one senior American military official involved in the
operation.
If
It's much more difficult when you're fighting from
a distance as we are now."
A further complication, according to senior U.S. military
officials, is that the Iraqis have honed their skills at deception
and the use of decoys
Army commanders said the latest assessments indicate that only
10 percent of the Iraqi transportation network remains intact and
that Iraq's power generation system is now operating at about 75
percent of its total capacity
Senior military officials said Wednesday that about 70 percent
of the Iraqi military's communications network has been destroyed
or damaged.
(Molly Moore, Washington Post, A21)
U.S. FLIERS SHOOT DOWN IRAQI PLANES
EASTERN SAUDI ARABIA -- The war entered week four Thursday
with allied forces maintaining an around-the-clock pounding of
targets and gun-shy Iraqi pilots trying to flee to neutral Iran.
American fighter pilots Wednesday shot down four enemy planes
streaking toward Iran, where an estimated 120 Iraqi aircraft have
taken at least temporary refuge.
"It was the most beautiful thing I've ever seen," said one of
the two Air Force pilots who turned the four warplanes
into
exploding debris within seconds of Iranian airspace
Meanwhile, in advance of a widely anticipated ground offensive
into occupied Kuwait, allied fores sought to wear down Saddam's
elite Republican Guard and military border positions.
(Thomas Ferraro, UPI)
White House News Summary
Thursday, February 7, 1991 -- A-4
'SADDAM FINISHED' IRAQI DESERTERS TELL JOURNALISTS
LONDON -- Four Iraqi soldiers surrendered to Western
journalists with the words "Iraq finished -- Saddam finished" and
predicted a mass surrender after an allied ground offensive, a
British newspaper reported Thursday.
The Independent said the Iraqis gave themselves up to a group
of reporters near the Kuwaiti border, bringing with them accounts
of life under saturation bombing, scanty rations and morale so low
that members of the Republican Guards have been ordered to shoot
deserters.
The soldiers walked out of the desert carrying leaflets
dropped over enemy lines by the allies which urge Iraqi forces to
surrender
"Everyone wants to come like us
when the attack begins they
will surrender," the newspaper quoted Khalid, a 26-year-old
corporal in the conscript army, as saying.
But the Republican Guards
were said to be still loyal to
Saddam Hussein.
(Reuter)
JORDAN'S KING ASSAILS GULF WAR,
DEMANDS U.S. ACCEPT CEASE-FIRE
Allies Attacking 'All Arabs and Muslims,' Monarch Declares
AMMAN -- King Hussein lashed out Wednesday night at the
"savage and large-scale war" being waged on "brotherly Iraq" and
called on Arabs and Muslims to induce the U.S.-led coalition to
accept a cease-fire in the conflict.
"This is a war against all Arabs and Muslims," he said in a
televised address that reflected both the mounting pressures on
Jordan and popular sentiments among his countrymen, particularly
Palestinians, favoring Iraq since its invasion of Kuwait.
Without mentioning him by name, King Hussein also assailed
President Bush's claim that the Gulf conflict is a "just war"
fought to defend a "new world order."
Hussein said that "the talk about a new world order whose
early feature is the destruction of Iraq
leads us to wonder about
the identity of this order and instills in us doubts about its
nature.
In Washington, Bush immediately rejected Hussein's truce call,
saying that "there will be nothing of that nature" until Iraq
begins "a credible, unilateral withdrawal" from occupied Kuwait,
"and then we'll see what happens."
(Nora Boustany, Washington Post, A24)
ENVOYS MEET IN IRAN ON GULF PEACE 'IDEAS'
Plan Said To Be Aimed At Iraqi Face-Saving
TEHRAN -- High-ranking Soviet and Turkish envoys conferred at
length with Iranian Foreign Minister Velayati here Wednesday as
purported details of Tehran's "ideas" for a diplomatic settlement
of the Gulf war began to emerge
Close observers here indicated that the plan is designed in
general to encourage a pullout of Iraqi forces from Kuwait in
return for a number of face-saving enticements, including funding
for postwar Iraqi reconstruction.
(Jonathan Randal, Washington Post, A24)
-920m-
White House News Summary
Thursday, February 7, 1991 -- A-5
POSSIBLE CEASE-FIRE WORRIES PENTAGON
Any pause in the allied round-the-clock bombing campaign would
help Saddam Hussein repair his damaged military machine and prepare
Iraq for some type of offensive action, senior Pentagon officials
said Wednesday.
Although President Bush has repeatedly said there will be no
cease-fire until Iraq begins withdrawing from Kuwait, some military
leaders fear such a pause could take place
Many still have visions of the Paris peace talks between the
U.S. and North Vietnam and how the concurrent pause in U.S. bombing
runs enabled the Vietnamese to resupply their forces.
"One of my great fears is the idea of a bombing pause, said
a senior Pentagon official. "You'll be going back to the same
place two months later and getting hosed and losing buddies and all
because they had a chance to re-arm and get their sites up again,"
he said. "This meeting in Tehran
could be the beginning of
another Paris. "
Officials have said Iraq has an amazing ability to repair
command-and-control sites, runways and other damaged facilities in
a remarkably short period of time.
(Gregory Vistica, Copley)
AMERICAN FROM INCIRLIK BASE SHOT DEAD IN TURKEY, AGENCY SAYS
ANKARA -- An American who worked at the Incirlik air base in
Turkey, from which U.S. aircraft are attacking Iraq, was shot dead
by an unknown assailant in the Turkish city of Adena Thursday, the
semi-official Anatolian news agency said.
The gunman fired four shots at the American as he was getting
into his car to go to work just after 7 a.m. (midnight EST), the
agency added.
(Reuter)
IRAQ CHARGES HIGH CIVILIAN TOLL IN AIR RAIDS
AMMAN -- Iraq claimed Wednesday that an allied air raid killed
150 civilians in a city in the south -- the highest raid toll
reported by the government so far -- and official reports and
eyewitness accounts told of heavy bombing in and around Baghdad and
numerous other cities.
After weeks of playing down the casualties and the human cost
of the war, Iraq Wednesday painted its 21-day toll in harsh terms
of civilian destruction and accused President Bush and the U.S.-
led coalition force of attempting to "expel Iraq from the 20th
century.'
In a move that appeared to have little practical effect but
was intended to show the intensity of its anger toward the allies,
Baghdad also announced it was severing diplomatic relations with
the U.S. and other countries in the multinational force.
(Nora Boustany, Washington Post, A1)
-
White House News Summary
Thursday, February 7, 1991 -- A-6
ANTI-AIRCRAFT GUNS/CIVILIAN AREAS
RIYADH -- The U.S. military is concerned about the increasing
presence of Iraqi anti-aircraft guns on rooftops of buildings in
civilian neighborhoods.
U.S. military sources say the guns are being positioned to get
a clear shot at U.S. attack planes.
None of the gun positions has been attacked, but the sources
say the commander of U.S. troops in the Gulf is debating what to
do about them.
(AP)
VAST KUWAITI OIL SLICK
BEGINS THREATENING SAUDI COASTAL FACILITIES
TANAJIB, Saudi Arabia -- The world's largest oil spill has
begun washing ashore near oil processing facilities at Safaniya on
Saudi Arabia's northeast Persian Gulf coast, posing a threat to
production from the world's fourth largest oil field.
Thick patches of oil from the leading edge of the giant spill
started blackening beaches near an oil treatment complex and
desalination plant at Safaniya two days ago
Segundo Fernandez, superintendent of the desalination plant
at Tanajib, said Aramco would not be able to process oil from wells
sited offshore above the Safaniya field if the spill clogged the
water intake system at the shoreline oil distillation facilities.
At the moment, however, Aramco spokesman Joseph Kenny said the
Safaniya field "is in full operation."
(pool report, Washington Post, A22)
BAKER OUTLINES LONG-TERM GOALS IN MIDEAST
Roles For Iran And Iraq In Postwar Balance of Power Seen;
Tehran Neutrality Praised
Secretary Baker told Congress Wednesday that Iran could be
included as "a major power" in any new postwar regional security
arrangement in the Gulf along with a war-devastated Iraq.
In testimony before the House Foreign Affairs Committee that
sketched out the long-term direction of U.S. policy in the Middle
East, Baker indicated that the U.S. has not abandoned its
historical goal of seeking a balance of power in the Persian Gulf
between Iran and Iraq
Baker offered praise Wednesday for Iran's behavior during the
war, in which Iran has remained neutral. But he said recent
diplomatic initiatives by Iran's leadership had produced no
promising avenues for altering the war.
In response to questions, Baker indicated that the
administration wanted to avoid actions that would expand American
goals in the war, such as a commitment to topple Saddam, or try him
for war crimes, or seek reparations. "I think we should think
through very carefully anything that would enlarge or enhance our
goals and war aims," he said.
(David Hoffman, Washington Post, A21)
-920m-
White House News Summary
Thursday, February 7, 1991 -- A-7
Vengeance Useless, Claims Baker -- Secretary Baker said Wednesday
that Iraq should be rebuilt, not punished, after the Gulf war, and
that both Iraq and Iran should play major roles in future Gulf
security arrangements.
Baker, outlining Bush administration policy on the Middle
East's future for the first time since war began, shied away from
suggestions that Iraq and its leaders be punished for Saddam
Hussein's invasion of Kuwait.
"No one should forget that for the second time in a
generation, the people of Iraq will be recovering from a disastrous
conflict," he told the House Foreign Affairs Committee.
"The time for reconstruction and recovery should not be the
occasion for vengeful actions against a nation forced to war by a
dictator's ambition. The secure and prosperous future everyone
hopes to see in the Gulf must include Iraq," he said.
(Warren Strobel, Washington Times, A1)
BAKER RECOMMENDS DELAY ON ARMS ACCORD,
SAYS SOVIET LEADERSHIP AT CROSSROADS
Secretary Baker, questioning Soviet credibility, called for
a deal in ratifying a landmark conventional weapons reduction
treaty and accused the Kremlin of turning "down a path of no
benefit" in the Baltics and on other fronts.
In testimony to the House Foreign Affairs Committee, Baker
lashed the Soviet leadership for expanding the authority o the army
and the KGB and for the harsh way it was dealing with rebellion in
the Baltics.
"Perestroika cannot succeed at gunpoint," Baker said
In Moscow, there was no immediate reaction to Baker's
comments, which came late in the day Moscow time. Earlier,
however, Foreign Ministry spokesman Churkin ridiculed a report that
the conventional forces agreement was in jeopardy.
"There really are certain problems with numerical data. We
continue to work on them and are confident that they will be duly
resolved and the agreement will enter into force."
Baker said the questions raised by the U.S., its allies and
even Warsaw Pact members go "to the heart of credibility and
trust.'
(Barry Schweid, AP)
U.S. SENDING MEDICAL SUPPLIES
DIRECTLY TO BELEAGUERED BALTICS
The Bush administration Wednesday initiated direct shipments
of U.S. medical aid to the beleaguered Baltic republics of the
Soviet Union in a gesture of U.S. support for them.
At the same time, Secretary Baker signaled that the U.S. would
not move toward ratifying the recent conventional arms reduction
treaty until controversies with the Soviet Union about application
of the treaty are cleared up.
"The Soviet leadership is at a crossroads," Baker declared in
testimony covering a range of Soviet-related issues before the
House Foreign Affairs Committee
The announcement of the U.S. medical aid to the Baltic
states
came from the White House less than 24 hours after the
Soviet Union gave its permission for the direct distribution of the
assistance in those areas. (Don Oberdorfer, Washington Post, A1)
-
White House News Summary
Thursday, February 7, 1991 -- A-8
U.S. Plans Direct Aid To 4 Soviet Republics -- In a dramatic move
to strengthen ties to independence-minded Soviet republics, the
White House Wednesday announced plans to send medical goods
directly to Lithuania, Estonia, Latvia and the Ukraine.
Administration officials said the new $5 million program is
another signal to Gorbachev that President Bush is concerned at
Moscow's backpedaling on promised reforms and Red Army violence
against Baltic independence movements.
Bush, in a New York appearance Wednesday night, expressed new
concerns about Soviet tactics in the Baltics and its potential
divisive effect on what he calls "the new world order," which he
defined more precisely than ever in the Baltic context.
Because of the repression in the Baltics, he said, there was
no chance of liberalizing trade with the Soviet Union now, and he
faced pressure to pull back on "modest steps" already taken
Baltic-American groups heralded the administration's pledge
of direct humanitarian assistance to the Baltics
They said the
administration is also considering sending a delegation to the
region and possibly granting observer status in a world security
organization to the baltic republics.
"There's a sea change" in administration superpower politics,
said Mari-Ann Rikken, of the Estonian-American National Council.
"It's as simple as you can't trust the enemies."
(Paul Bedard, Washington Times, A1)
GORBACHEV URGES UNITY, PARTICIPATION IN REFERENDUM
MOSCOW -- Mikhail Gorbachev made a surprise television
appearance Wednesday night to declare his determination to hold
the country together and urge full participation in the Kremlin's
referendum on the union.
"All my convictions are based on preservation of the union,"
the Soviet president said, sitting at a desk to deliver a 15-
minute address.
"The Soviet Union is a superpower," he said. "Huge efforts
were made to make it so powerful, and we could lose it very
quickly."
It was Gorbachev's clearest declaration to date that he will
not let any of the 15 republics secede. While acknowledging that
areas were brought into the union by force, he said the fate of all
now depends on remaining in a common economic system.
In a speech that mixed warnings of catastrophe with promises
of ethnic self-determination, Gorbachev showed his frustration with
dozens for nationalist movements that he said had sapped the
country's economy, left hundreds dead in ethnic conflicts, and
spurred a shift to hard-line policies.
He did not, however, threaten specific action against
secessionist republics. He said only that lawmakers should ensure
everybody has the chance to vote in the Kremlin-ordered referendum
March 17 on preserving the union.
(Thomas Ginsberg, AP)
White House News Summary
Thursday, February 7, 1991 -- A-9
WALESA: SOVIET UNION SHOULD BE DISSOLVED
ROME -- President Walesa said Moscow should dissolve the Union
of Soviet Republics and form a confederation of republics based on
the principles of freedom, democracy and pluralism.
Walesa, speaking during a news conference at the end of a
three-day working visit to Italy, said the new confederation should
be formed by anybody who wants to join it
Walesa told the news conference that following the wave of
reforms in Eastern Europe "a new epoch in international relations"
has started in which "pluralism and freedom are the challenges."
"If the Soviet Union wants to be a world power, it should
dissolve itself and form a new confederation of republics which
anybody would be free to join," he said.
(UPI)
SOVIET GROCERY STORES BOAST BUTTER
SINCE GUNS ARE GONE
After fears of a winter famine, food is back in the shops of
Moscow.
Many groups are claiming credit. But the real heroes appear
to be aggressive city governments and Red Army generals who have
released railroad cars tied up in weapons transport
The crisis appears over as eggs, poultry and milk appear in
quantities not seen in more than a year.
Glee over the growing stock on grocery store shelves has been
offset to some extent by sharply rising prices.
(Martin Sieff, Washington Times, A7)
FREE TRADE PLAN RUNS INTO SKEPTICISM ON HILL
The Bush administration's plan to negotiate a free trade
agreement with Mexico came under skeptical questioning on Capitol
Hill
Midwesterners on the Senate Finance Committee grilled USTR
Hills about the impact that a trade agreement with low-wage Mexico
might have on industrial jobs in the U.S.
"Those manufacturing jobs are going to slide away," warned
Sen. Riegle
Some senators also questioned promoting industrial development
in a country with much laxer pollution-control enforcement than the
U.S.
"We have a lot of chemical plants that are impacted by the
Clean Air Act," said Sen. Breaux. "Why not build that plant in
Mexico if the cost of locating that plant in Louisiana would be
higher?"
Hills dismissed the possibility of massive job losses if goods
and services are permitted to move freely between the two
countries.
"The Mexican economy is 4% of our own, so I don't see a lot
of harm to our economy."
(David Cloud, Scripps Howard)
-
White House News Summary
Thursday, February 7, 1991 -- A-10
Free-Trade Agreement/Reaction -- U.S. lawmakers Wednesday urged the
Bush administration to consider the effects of Mexico's low wages,
as well as its lax work-safety and environmental regulations, as
it negotiates a U.S.-Mexico free-trade pact in the coming months.
At the same time, major business groups expressed support for
a well-drawn agreement, saying it could substantially boost exports
from the U.S. and thus create jobs at home. Spokesmen for business
expressed special concern that the pact establish strict "rules of
origin," so that Mexico does not become a platform that other
nations use to assemble products for shipment -- quota and tariff-
free -- into the U.
Thomas Donahue, secretary-treasurer of the AFL-CIO, told the
committee a free-trade pact with Mexico would be "an economic and
social disaster" for American workers.
The Business Roundtable, a broadly-based business group, urged
the committee to allow negotiations to proceed on a fast-track
basis
"By the year 2000, Mexico will have 100 million consumers,"
said Kay Whitmore, head of Eastman Kodak Co. and chairman of the
roundtable's working group on U.S.-Mexico trade
James Baker, chairman of the U.S. Chamber of Commerce, said
a U.S.-Mexico trade pact would help the 180,000 members of his
group. He said some jobs may move south, but "if wage costs were
the principal determinant of business success, then Haiti would be
an industrial powerhouse."
(John MacLean, Chicago Tribune)
ISRAELI TROOPS HIT PLO TARGETS IN SOUTHERN LEBANON
JERUSALEM -- Israeli troops thrust north of Israel's self-
declared security zone in southern Lebanon overnight for the first
time since the start of the Gulf war and destroyed Palestinian
guerrilla targets, the army said Thursday.
"An Israeli army force operated last night against a number
of terrorist targets
north of the security zone in south Lebanon.
There were no injuries to our forces. The terrorist targets were
hit and destroyed," an army statement said
Lebanese government troops moved into south Lebanon for the
first time since 1975 Wednesday, taking up positions within sight
of Israel's security zone.
(Reuter)
DOLLAR SLIDES TO NEW LOW DESPITE EFFORTS OF CENTRAL BANKS
NEW YORK -- The dollar slid to a postwar low against the
German mark and a 10-year low against the British pound despite
attempts by central banks of leading industrial nations to prop up
the U.S. currency.
The dollar's fall in recent days has been prompted by the
belief that the Fed will lower interest rates even further to
stimulate the economy [thereby decreasing the value of the dollar
since dollar-investments earn less interest].
The Fed's action [Friday cutting the discount rate to 6%]
contrasts sharply with recent moves by the central bank of Germany
to raise the nation's interest rates, making the mark more
attractive.
(Bart Zeigler, AP)
EDITOR'S NOTES: The New York Times arrived after today's News
Summary went to print.
NATIONAL NEWS
BUSH SEES 'MILD AND' BRIEF' RECESSION
NEW YORK -- President Bush offered the country an economic pep
talk here Wednesday night, predicting that the current recession
would be "mild and brief" and adding that while the economy "may
be beset by difficulty, it should not be beset by doubt."
In remarks prepared for delivery at the Economic Club of New
York, the President also suggested that a successful conclusion to
the Gulf war would help assure long-term economic growth. "The
road to real peace will be long and tough, Bush said. But he
argued that by "standing up to aggression in the Gulf, we are
guaranteeing the future security and stability of that area, that
is so vital to global economic prosperity."
Bush repeated his belief that the allied campaign in the Gulf
is "on course and on schedule," adding that "hour by hour, Iraq's
capacity to wage war is being systematically destroyed by American
and coalition forces. "
Bush offered a preview of the national energy strategy that
Secretary Watkins will unveil soon, saying it would reduce the
vulnerability of the American economy to disruptions in world oil
supplies.
But he sounded a defensive tone as he tried to counter critics
who already are predicting that the administration's plan will not
go far enough to assure conservation.
"Some will argue that reducing our energy vulnerability is not
enough and that we should embark upon more drastic measures
designed to achieve total energy independence," he said. "The
reality is that we are a long way from total energy independence.
We must avoid unwise and extreme measures that would seriously hurt
American consumers, American jobs and American industries."
(Dan Balz, Washington Post, A4)
President/New York Speech -- President Bush traveled to the
nation's financial center Wednesday night to deliver a pep talk on
the economy, assuring a tony audience of business leaders that he
had rejected some proposals for energy conservation that could have
been costly for industry.
In the long-awaited national energy strategy he plans to
unveil later this month, the President said, he would "avoid unwise
and extreme measures that would seriously hurt American consumers,
American jobs and American industries."
Bush's comments received a friendly reception from an audience
of more than 2,600 people, many of them executives from Blue Chip
firms, at a forum sponsored by the Economic Club of New York in the
New York Hilton. But outside the hotel, an estimated 3,500 anti-
war protesters waved signs and chanted slogans including "No blood
for oil.
=
The details of Bush's energy strategy are not yet known. But
a White House official said the comments in the speech were
designed to "reduce expectations and concerns" that the plan would
be too ambitious
In a question-and-answer session that followed his speech,
Bush also said U.S. leadership in the Gulf might lead to unrelated
trade concessions by Japan and Germany.
(Sudan Page, New York Newsday)
White House News Summary
Thursday, February 7, 1991 -- A-12
Bush Seeks To Reassure Business That Recession Will Be Brief --
President Bush assured business leaders Wednesday night the
recession will be "mild and brief" and does not signal any decline
in the nation's long-term economic health.
"The bottom line is this: While our economy may be beset by
difficulty, it should not be beset by doubt, the President said
in a speech to the Economic Club of New York
"True, the deficit is high -- unacceptably high,' Bush said,
adding that the savings and loan bailout, the Gulf war and the
recession "haven't helped a bit."
But he predicted the deficit, a record $318 billion this year,
"will be virtually eliminated by 1995" as a result of a plan of
spending reductions and tax hikes adopted last year
"We are in a recession, there's no question about that. But
I think it will be shallow," said Bush, predicting the recovery
would start "before half a year's over.
Security in New York, always heavy, was extraordinary. Police
cars blocked not only side streets but every garage and parking lot
exit on Bush's route
About 1,000 anti-war protesters gathered at the hotel, but
they didn't see Bush and he didn't see them. A dozen people turned
out in a pro-war demonstration.
(Christopher Connell, AP)
Bush Vows Resumption Of 'Robust Economy' -- President Bush painted
a rosy picture of imminent economic growth and prosperity and
minimized the impact of the recession Wednesday night as he began
demonstrating that the Gulf war has not consumed him.
He predicted the recession would end "before half a year is
over. "
The trip with Mrs. Bush to a black-tie dinner of the New York
[Economic] club -- rush-hour gridlock and all -- put action in his
oft-repeated creed that "life goes on," even as the President
wrestled with an imminent decision on launching a Gulf ground
invasion.
While balancing concern for the troops and their families, he
says Saddam Hussein will not hold him hostage at the White
House
He is back to signing proclamations for Heart Month,
receiving Boy Scouts. jogging and joking in public, and limited
travel although schedules are now marked "sensitive."
(Frank Murray, Washington Times, A3)
-970m-
White House News Summary
Thursday, February 7, 1991 -- A-13
BUSH ENERGY STRATEGY STRESSES CONSERVATION
Secretary Baker Wednesday stressed the urgency of a national
energy strategy the Bush administration will unveil soon.
"We simply must do more to reduce our energy dependence," he
said as he outlined postwar policy needs to the House Foreign
Affairs Committee. "We must bring to this task the same
determination
that we are now bringing to the war itself.
=
Baker' S statement Wednesday drew mixed praise from energy
watchdogs and environmental advocates who have criticized the Bush
administration's lack of a cohesive, coordinated approach to the
nation's energy requirements.
"It sets up a fairly strong set of rhetorical goals that we
can hold against them," said Christopher Flavin, chief energy
analyst for the Worldwatch Institute, an environmental think tank.
Baker's statement "came closer to indicating where we need to
go with our energy systems than anything else, including the
President's State of the Union address, he said.
(Ronald Tyler, Washington Times, A3)
BUSH POSTPONES ENERGY POLICY ONCE AGAIN
Eighteen months after he asked the Energy Department to come
up with a rational plan for the nation's energy future, and nearly
a month after he ordered U.S. troops into battle in the richest oil
patch in the world, President Bush is once again delaying his long-
proposed national energy strategy.
The administration had planned to send the plan to Capitol
Hill Thursday, but sent word Tuesday that it would be delayed until
Feb. 18, according to Sen. Gore.
Gore said the delay was an attempt to save Bush the
"embarrassment" of releasing an energy strategy that doesn't do
very much about conservation and renewable energy while Washington
is the site of the first round of international talks on a treaty
to reduce global warming.
"The administration is ducking the hard decisions on energy
and the environment. They are engaged in a shell game, pretending
to act while behind the scenes preventing action, even by others,"
said Gore
Many observers say the President will lose the initiative on
energy issues to Congress unless he musters more enthusiasm than
he has shown so far, and some think the Gulf war itself has already
made the one-and-a-half year effort obsolete
Henry Lee, lecturer at Harvard's Kennedy School of Government,
said he doubted that the authors of the plan or other political
leaders have reckoned with how different the world will be after
the Gulf war
"We have had a nearly two-year effort to develop a whole bunch
of ideas that might have been very realistic two months ago, but
not after this war is over," Lee said. "I would get people back
to the drawing board, because they have been thinking of policy in
a context that may no longer exist."
(James Franklin, Boston Globe)
-
White House News Summary
Thursday, February 7, 1991 -- A-14
DEMOCRATS: BUSH BUDGET WOULD GIVE RICH 'HELL OF A DEAL'
Congressional Democrats continued their verbal bombardment of
President Bush's budget, with Rep. Panetta saying it gives the rich
"a hell of a deal" worth billions.
Panetta directed his criticism at OMB Director Darman.
Darman appeared before the House Budget Panel to defend Bush's
$1.4 trillion budget proposal for FY92
Panetta expressed disappointment that Bush's budget did not
attack serious domestic needs with the same vigor that the U.S. is
using to attack Iraq.
"It seems to me that when it comes to problems halfway around
the globe that require a military solution, the Bush
administration, like the Reagan administration before it, is
immediately prepared to make a full commitment of this nation's
resources -- both human and financial -- to solve the problem,"
Panetta said.
"Now, compare that with our response to domestic problems,
many of which are equally complex and equally difficult and many
of which have just as great an impact on the lives of the American
people, Panetta said, adding: "No one can claim that (Bush's
domestic proposals) come close to approaching the magnitude of
those problems."
[Speaking of the cap gains proposal, Panetta said:] "That's
a hell of a deal. The bottom line is that they (the rich) come out
way ahead
You weigh the benefits and (the rich) get a hell of
a better deal with capital gains."
(Bud Newman, UPI)
SENATE DEMOCRATS TO EMPHASIZE PAYROLL TAX,
CIVIL RIGHTS, PARENTAL LEAVE
Sen. Mitchell said Wednesday the Democratic agenda in the
102nd Congress will include plans to cut the Social Security
payroll tax and enact civil rights and parental-leave bills
In setting the party on a collision course with President
Bush, Mitchell said in a statement released on behalf of all Senate
Democrats that the U.S. is "at a cross-roads" and that steps must
be taken to strengthen the economy and rebuild infrastructure.
"Without a strong and growing economic base, the lives of
people are narrowed, their energies are directed to survival," the
statement said. "A central goal of our agenda is to restore the
ability of American parents to provide for their children by their
own work effort, to restore the strength of American families."
Moreover, it said, "tax fairness" is a major goal, and
Mitchell said spending on education, research and other domestic
projects should not be ignored because of the Gulf war
Mitchell conceded that while, under the budget agreement, he
must find a source to replace revenues lost from cutting the
payroll taxes, he has not identified one. But he said Bush had not
said either where money could be found to compensate for his
proposed cut in the capital gains tax rate.
The Democratic blueprint indicated, however, that the wealthy
might be asked to pay more in Social Security taxes.
(Michael Frisby, Boston Globe)
-970m-
White House News Summary
Thursday, February 7, 1991 -- A-15
REVIEW OF RACE-BASED SCHOLARSHIPS PROMISED
Education Nominee Says He'll Discard New Limits
That Sent 'Wrong signal' To Minorities
Lamar Alexander Wednesday told a Senate committee that, if
confirmed as education secretary, he will discard new federal
restrictions on race-based scholarships and "start over" by
ordering a broad review of Education Department policy on such
scholarships.
Alexander described scholarships reserved for minorities as
an important signal that encourages them to enter college
On other subjects, Alexander said he was not involved in
drafting President Bush's proposed budget for education and
therefore could not answer questions about it. He also promised
to explore new approaches to student aid programs, which Congress
must reauthorize this session
Alexander advised college officials not to alter their
practices during the review. "I don't want anybody to slow down
their efforts to encourage disadvantaged Americans, especially
minorities, to go to college while we develop a policy to make sure
we do that in an American way," he said. "I want them to go
ahead."
His statements won praise from committee leaders. Sen.
Kennedy called it "a very thoughtful response." Sen. Hatch said:
"How could we ask for a better answer than that?"
But Richard Rosser, president of the National Association of
Independent Colleges and Universities, said unless the review is
completed quickly, "We will continue to have all kinds of
uncertainty out there."
(Kenneth Cooper, Washington Post, A3)
McCURDY: NO 'SHRINKING VIOLET'
Intelligence Panel To Swear In Witnesses,
Push For Reorganization
From the Pentagon to the CIA, U.S. intelligence agencies can
expect tougher congressional scrutiny, promises Rep. McCurdy, the
new chairman of the House intelligence committee.
"I don't think the committee has been aggressive enough," he
said in an interview. "I intend to reestablish our credibility as
an oversight committee. We are not going to be a shrinking violet.
I intend to stand up to Judge Webster."
(George Lardner, Washington Post, A17)
-
White House News Summary
Thursday, February 7, 1991 -- A-16
REDESIGN OF U.S. WEAPONS PLANT NETWORK PLANNED
with Nuclear Arms Seen Declining 30-85%,
Consolidation of Bomb Factories To Be Studied
The Bush administration has estimated that the number of U.S.
nuclear weapons will decline by 30 to 85 percent during the next
two decades, allowing a substantial shrinkage of the nation's bomb
building complex, senior Energy Department officials said
Wednesday.
The estimate provides the basis for an expected multibillion
dollar redesign of the U.S. network of weapons factories and
associated nuclear reactors to be announced today by Secretary
Watkins
The plan reflects the end of the Cold War nuclear
confrontation with the Soviet Union, rising public demand for
greater environmental protection and safety, and the realities of
a tight budget, the officials said.
The era of an "open checkbook for nuclear weapons is over,"
said Undersecretary of Energy Tuck.
(R. Jeffrey Smith & Thomas Lippman, Washington Post, A7)
DOW UP 43 ON BULLISH SPECULATION
Since Start of War, Gain Is 12.8 Pct.
NEW YORK -- Stocks soared 43 points Wednesday, pushing the Dow
through the key 2800 barrier for the first time since Iraq invaded
Kuwait six months ago and leading traders to speculate about a new
bull market
"Stocks keep going higher and we've got the underpinnings of
a real bull market," said Brett Discher, vice president of equity
trading at Dain Bosworth.
"There is so much strength in the market you have to believe
that it's not a rally within a bear market, it's the start of a new
bull market," said James Tarantino, head of over-the-counter
trading at Hambrecht & Quist in San Francisco.
(Washington Post, E1)
Afraid To Miss A Rally, Pros Clamber To Buy, And Market Is Soaring
-- It's a buying frenzy
All around Wall Street, traders on desks that deal in big
blocks of stocks are exuberant because, for the first time in
moths, investors from around the world are calling and asking to
buy stocks
Professional money managers, fearful of making the job-
threatening mistake of missing a major rally in stocks, are
plunging back into the market. And although the rally started with
big institutions than manage pension funds and the like, even the
long-absent "little guy" seems to be starting to join in.
(John Dorfman & Craig Torres, Wall Street Journal, A1)
-
White House News Summary
Thursday, February 7, 1991 -- A-17
WORLD LEADERS AND 'SPECIAL FRIEND' CELEBRATE REAGAN'S BIRTHDAY
LOS ANGELES -- President Bush and other national leaders sent
best wishes, "special friend" Margaret Thatcher was on hand to talk
of "a great American" and film stars happily paid $2,500 a head
Wednesday to help Ronald Reagan celebrate his 80th birthday.
It was a birthday Hollywood style with Liza Minnelli singing
the ex-president's favorite song "You Made Me Love You" -- with
a Marine band and a gospel choir performing as well
Reagan
said he had a birthday wish -- "My wish is God will
watch over each and every one of our men and women who are bravely
serving in the Persian Gulf
President Bush, in a film clip, told Reagan: "I know full
well that I would not be president today if you had not chosen me
as your vice president." Sitting in the audience was Vice
President Quayle.
"You made our military proud and strong, and I thank you for
that, Bush said. He sent a "special hello" to Thatcher. "I thank
the courageous men and women of the United Kingdom who are fighting
shoulder to shoulder with us in the Gulf," he said.
(Ronald Clarke, Reuter)
EDITOR'S NOTES: "Weak War Coverage Isn't The Only Problem At CBS
Evening News -- Are Rather's Days Numbered?," by Kevin Goldman,
appears in the Wall Street Journal, A1.
"Plan for Stateside Care Of Casualties Criticized," by Susan Okie,
appears in the Washington Post, A26.
-End of A-Section-
NETWORK NEWS
(Wednesday evening, February 6 -- NBC was one-hour.)
GULF WAR/CONGRESS
NBC's Tom Brokaw:
(TV Coverage: Pilots celebrating.)
American pilots feeling good about shooting down Iraqi jets, as
Secretary Baker sounds a warning:
(Secretary Baker: "The military actions now underway necessarily
involve many casualties, great hardships, and growing fears for the
future. So tough times lie ahead.")
-- NBC opening theme --
Brokaw: The other day, the American commander of Operation Desert
Storm warned Saddam Hussein "the best is yet to come." Well,
today, a translation from Secretary Baker for the American people:
The worst is yet to come.
NBC's Andrea Mitchell reports on Secretary Baker's testimony to
Congress today. His warning about the sacrifices of war was grim.
But after congressional criticism that the Administration has not
looked ahead, for the first time Baker also outlined his vision of
a post-war Middle East. He suggested that both Iran and Iraq
should have a role in post-war arrangements to keep the peace.
(Secretary Baker: "No regional state should be excluded from these
arrangements. Post-war Iraq could have an important contribution
to play, and so could Iran, as a major power in the Gulf.")
He raised the possibility that a permanent ground force, perhaps
under U.N. control, might be needed after the war. He called for
regional arms control, and said there may be opportunities to
resolve the Israeli-Palestinian conflict. But:
(Baker: "Let's not fool ourselves, though. The course of this
crisis has stirred emotions among Israelis and Palestinians that
will not yield easily to conciliation.")
The House Foreign Relations Committee applauded his ideas, but
complained bitterly that the allies are not doing enough to pay for
the war.
(Rep. Fascell: "How about the details on burden-sharing, Mr.
Secretary? Why is that a problem? Why do we just get, literally,
as some members complain, get stonewalled?" Baker: "Well, I don't
think it is a problem.")
(Rep. Lantos: "Japan finds it much easier to find money to buy up
America, from MCA to Rockefeller Center, than to begin to pay its
appropriate share of the cost." Baker: "Those pledges are now
beginning to be paid. I think that that's a remarkable degree of
participation by our coalition partners.")
But after Baker smoothed troubled waters, Pentagon officials
briefed Congress on the war's progress, amidst growing opposition
to a ground war.
(Sen. Mitchell: "I would hope that we do not proceed to ground
action, and I hope it doesn't become necessary.")
The opposition to ground war is starting to cost the Administration
political support just when it's going to need it most. (NBC-Lead)
-
White House News Summary
Thursday, February 7, 1991 -- B-2
GULF WAR/REP. McCURDY
Brokaw interviews the new chairman of the House Intelligence
Committee, Rep. McCurdy.
Brokaw: Secretary Baker sounded a very ominous note tonight when
he testified before Congress. Are you convinced there will be a
ground war; and if it does come, will it be exceptionally bloody?
McCurdy: It's up to Saddam to determine whether or not there will
be a ground phase. If he continues to hold out, I think eventually
there will be a requirement to go in on the ground
I left the
Army Chief of Staff thirty minutes ago, who said, so far, so
good
They don't expect to rush it. They believe that when the
air campaign has succeeded, then it'll be time to consider the next
phase
The Republican Guard has still not been degraded to the
point that many of us believe it's time to initiate a ground
conflict. However, they are receiving a constant, incredible
punishment every day
Brokaw: Should the Administration objective be to get Iraq out of
Kuwait, or to put Saddam Hussein out of business altogether?
McCurdy: I think the initial goal is still the same, and that's
to get Iraq out of Kuwait. We also we're concerned about his long-
term threat of nuclear, chemical and biological weapons. That's
been achieved. The real question now is whether he wants to have
a country that is governable, or whether he wants to become a
martyr or a figure, a country and a cause that basically has no
force.
(NBC-16)
GULF WAR
ABC's Peter Jennings: It is three weeks since the war began, and
tough times lie ahead. So said the Secretary of State Jim Baker
today. it was Baker's turn to say that Saddam Hussein's military
capability should not be underestimated. Today in the war, two
Iraqi jets apparently trying to leave the country for Iran were
intercepted by U.S. pilots and shot down. The Iraqis say that 281
missile raids and other air attacks were carried out against them
in the last 24 hours. They say that in the southern Iraqi city of
Masaria [phonetic], 150 people died, 35 of them children. One
Marine general said today the allied bombing was certainly taking
a toll on Iraqi troops -- just how much of a toll is the subject
of some debate.
ABC's Bill Redeker reports from Saudi Arabia on the allied air
campaign, in which some missions were cancelled today because of
overcast skies. The British admitted today direct hits on
Republican Guard positions have been difficult because Iraq is
using decoys. U.S. troops recently positioned near the Saudi-
Kuwaiti border are being told it will be up to them to dig out the
well-entrenched forces which the Air Force cannot hit. Meanwhile,
U.S. officers say six Iraqi soldiers turned themselves over to the
Marines Tuesday night, with one officer saying the Iraqi troops do
not believe in what they are doing anymore. But so far, only about
200 of Iraq's half-million soldiers have defected.
(ABC-Lead)
-920m-
White House News Summary
Thursday, February 7, 1991 -- B-3
CBS's Dan Rather: Allied warplanes kept up their round-the-clock
punishment of Iraq and occupied Kuwait today. American fighter
planes for the first time shot down Iraqi aircraft trying to flee
to Iran. Saddam's forces continued probing along the Saudi-Kuwait
border. King Hussein of Jordan called for a cease-fire; he accused
the U.S. of trying to destroy Iraq's economy and culture. In
Washington, in a statement that surprised some, Secretary Baker
said that after the war, the U.S. and its allies would help Iraq
rebuild. Today's allied military briefings listed another string
of losses for iraq, including some of its top fighter aircraft.
CBS's Eric Engberg reports from Saudi Arabia on today's allied
attacks. As the allies knock out bridges, the Iraqis are quickly
replacing them with floating pontoon bridges. The Saudi town of
Khafji was hit again by Iraqi troops from sea. Saudi troops
repelled a three boat-Iraqi commando team, sinking one of them.
With Iraq showing no sign of cracking, U.S. commanders got
questions from skeptical reporters on the lack of progress. The
generals insisted there is no stall. But the feeling is spreading
that a ground offensive is now unavoidable.
(CBS-Lead)
CBS's Scott Pelley reports from the 53rd Tactical Fighter Squadron
and speaks with the two U.S. pilots who shot down the Iraqi jets.
The pilots wished to remain unnamed for security reasons. (CBS-2)
NBC's Arthur Kent reports on the prospects for a ground war. There
is no clear sign yet it will begin. The largest movement of
British armor since WWII took place today, a rehearsal for ground
war. Elsewhere, U.S. Apache helicopters prepared for the ground
war, test-firing Hellfire guided missiles and its night-fighting
capability. In the air war, two U.S. F-15 pilots shot down two
Iraqi ground-attack aircraft fleeing to Iran; two MiGs were listed
presumed down. No allied warplanes were shot down.
(NBC-2)
GULF WAR/REPUBLICAN GUARDS
NBC's Fred Francis reports on the allied effort to neutralize the
Republican Guard. The next phase of the war turns on how many T-
72 tanks are killed in the days ahead -- all are well-protected,
many buried to the turret in sand. Lt. Gen. Kelly would not reveal
how many of Iraq's best tanks have been destroyed by special
munitions, but a senior Pentagon official said allied aircraft are
killing, on the average, 10 T-72s a day, and that the goal is to
destroy more than 200 before the ground war begins. The official
said, "That goal is being met." Also prior to the ground war, the
allies must collapse most of the major bridges near Kuwait to stop
the flow of supplies to Iraqi troops. So far, 44 of the key
bridges in southern Iraq have been destroyed.
(NBC-3)
Rather: There are reports, as yet unconfirmed, that B-52s are in
the process of being retargeted, shifting their attention to dug-
in Republican Guard positions along the Kuwait-Saudi border with
smaller tactical planes now carrying so-called smart bombs.
CBS's David Martin reports that the Pentagon makes no secret of the
fact that the air campaign has not yet done enough damage to the
elite Iraqi units to clear the way for a ground offensive. (CBS-3)
-
White House News Summary
Thursday, February 7, 1991 -- B-4
Jennings discusses the Republican Guards with analyst Anthony
Cordesman. Cordesman says the regular armored and mechanized
divisions had a better record of fighting than the Guard during the
Iran-Iraq war; the Guards were often sent in only to get the glory
-- not to do the hard fighting.
(ABC-3)
GULF WAR/FUEL-AIR EXPLOSIVES
ABC's Bob Zelnick reports the U.S. is considering using fuel-air
explosives in the Gulf war. Marines were seen in eastern Saudi
Arabia today stacking crates of the explosives, which create a
secondary explosion in the air which can cover two football fields
and suffocate enemy soldiers through its combustion.
(Lt. Gen. Thomas Kelly: "Do we have anything in principle against
fuel-air explosives? Not that I know of. It's a weapon like any
other; it creates an over-pressure, and could be valuable in
setting off mines.")
Officials at the Pentagon say fuel-air explosives have not yet been
used against Iraq, but are expected to be employed to aid the
coming ground campaign. Because of its airpower decimation, Iraq's
fuel-air weapons are considered no threat to the allies. (ABC-2)
GULF WAR/POLL
Jennings: When the war began, a majority of Americans thought it
would be over fairly quickly. Not anymore. Fifty-four percent of
the people ABC talked to Tuesday night think the fighting will last
six months or more. The overall support for the war effort remains
high: 78% are in favor of what is currently going on.
-- POLL --
How long will fighting last?
Less than six months:
37%
More than six months:
54%
YES
NO
Do you support the war effort?
78%
16%
(Error of plus or minus 3.5%)
(ABC-4)
GULF WAR/JORDAN
ABC's John McWethy reports on King Hussein's televised address to
his nation today. He angrily accused the U.S. and its allies of
trying to destroy Iraq's economy, culture and people, going well
beyond the U.N. resolutions. He said, "Fire rains down upon the
Iraqis, destroying mosques, churches, museums and hospitals.' He
urged the coalition to accept an immediate cease-fire. In
Washington, Secretary Baker testified that the only way to stop the
war now would be for Saddam to get out of Kuwait -- fast. He
warned there will be many casualties and great hardships ahead,
especially for the Iraqis. Despite that, Baker told the House
Foreign Affairs Committee that when the war is over, the U.S. will
have to help Iraq, not punish it, implying that there probably will
be no war crimes tribunals or war damages paid by Iraq.
-
White House News Summary
Thursday, February 7, 1991 -- B-5
McWethy's report continues:
(Secretary Baker: "The time of reconstruction and recovery should
not be the occasion for vengeful actions against a nation forced
to war as a result of a dictator's ambition.")
For the first time, Baker hinted that if Saddam uses chemical
weapons against U.S. troops, the American response may include an
attempt to remove him from power. Many assume the U.S. has been
trying to do that all along by bombing Iraq's command centers.
Jennings reports the White House said the U.S. has no argument with
Jordan, but believes that King Hussein has made a mistake to align
himself so closely with Saddam.
(ABC-5)
Rather reports King Hussein said Arab leaders worldwide should
realize the war is "a war against all Arabs and Muslims." On his
way to New York City this evening for a speaking engagement,
President Bush said he disagreed with the criticism leveled by King
Hussein that the alliance was trying to devastate Iraq and kill
civilians. Bush also said he understood the Jordanian king was
under pressure at home.
CBS's Doug Tunnell reports on King Hussein's remarks. He told
Jordanians the destruction in Iraq is now so vast that he rules out
a possibility of an Iraqi victory. The alternative to a cease-
fire, he said, is the humiliation and exploitation of Arabs and
Moslems. The air campaign has cut Jordan off from 80 percent of
its supply of oil. King Hussein said Jordan was being denied its
basic needs as a new form of punishment because Jordanians have
refused to join the alliance. Western diplomats there say the
kingdom's long-term stability may be at risk. The U.S. is now
trying to help Jordan find alternative sources of oil, asking Saudi
Arabia to restore oil shipments to them. But Western diplomats say
the Saudis are so angry at King Hussein that they have refused.
(CBS-4)
NBC's Dennis Murphy reports that as King Hussein shuttled across
the West, pleading for an Arab solution, he got frosty receptions.
(NBC-5)
GULF WAR/IRAN
NBC's Ed Rabel reports on the diplomatic activity surrounding Iran.
The Soviet deputy foreign minister showed up in Tehran to lend
diplomatic muscle to Iran's efforts to mediate an end to the war.
He also is saying the U.S. is making a mistake by rebuffing
Tehran's offer to act as mediator between Washington and Baghdad.
The U.S., he says, has to respect Iran's position.
(Deputy Foreign Minister Belonogov: "If it doesn't, then it would
be detrimental to interests of the United States.")
Belonogov denies knowing details of Iran's plan, but if a Kuwaiti
newspaper is correct, it would consist in part of a complete Iraqi
withdrawal from Kuwait; one of Iran's top leaders, Rafsanjani or
Ayatollah Khamenei, leading a pan-Islamic team to Baghdad to urge
withdrawal of all allied forces from the region, and an all-
Islamic peacekeeping force then moving in; and a non-aggression
pact between Iraq, Iran, Saudi Arabia, other Gulf cooperation
nations and possibly Turkey and Pakistan. Diplomats in Tehran
agree the allied coalition would never accept such a proposal. So
why did Turkey send its foreign minister to Tehran today?
-
White House News Summary
Thursday, February 7, 1991 -- B-6
Rabel's report continues:
(Foreign Minister Alptemocin: "The only way to solve the crisis
is the withdrawal of the Iraqi forces from Kuwait, unconditional,
according to the United Nations Security Council resolutions.")
And why do Iranian leaders only admit to 13 Iraqi planes enjoying
safe haven in Iran? Iran's foreign minister today denied reports
that more Iraqi planes had arrived overnight and that Iraqi pilots
wanted to go home. He added that he had still not heard back from
Saddam Hussein on the peace plan.
(NBC-4)
ABC's John McKenzie reports on Iranian reaction to the Gulf war.
Throughout the country tonight there were spectacular celebrations
to mark the twelfth anniversary of the Iranian Revolution and the
overthrow of the shah. But there were fears of being drawn into
the war. For the past several weeks, Iran has been stepping up
military exercises and beefing up patrols along the Iraqi border.
And some imported goods are jumping in price.
(ABC-6)
GULF WAR/RELIEF
Jennings reports the U.N. said it plans to deliver an emergency
shipment of medical supplies to Baghdad next week to help Iraqi
children and their mothers. The International Committee of the Red
Cross has already delivered 19 tons of food and medicine for Iraqi
civilians; the U.S. Red Cross says the shipments were made with the
U.N. approval and U.S. knowledge. The Red Cross has been harassed
by phone calls accusing them of helping the enemy.
(ABC-8)
GULF WAR/CASUALTIES
ABC's Beth Nissen reports on the issue of war casualties. Iraq
makes daily claims of civilian losses and arranges media coverage
of bomb damage, hoping to encourage anti-war sentiment in the U.S.
and anti-Americanism among Moslems. The U.S. military has taken
care to express regret over civilian losses, and equal care not to
show them, estimate their number, or even speak of them directly.
(Maj. Gen. Robert Johnston, USMC: "Collateral damage? I can't
talk about that.")
Both sides are controlling military casualty information for
political and strategic reasons. The Iraqis don't want to show us
our military operations are effective. In contrast, the U.S. has
been open about its own battle casualties.
(Gen. Schwarzkopf: "I told you, I'm anti-body count. Body count
means nothing, absolutely nothing.")
The U.S. military is still sensitive to charges that it inflated
enemy body counts in Vietnam and Panama. This time briefers are
not giving any estimates of enemy killed, fearing loss of
credibility if their figures prove inaccurate. The U.S. is also
afraid that confirmation of a high Iraqi body count might cause
Arab coalition members to waver.
(ABC-7)
PAN AM/IRAQIS
Jennings reports a civil rights lawyer said today Pan Am airlines
will no longer bar all Iraqi nationals from its flights; Iraqis
with U.S. passports or permanent residence of the U.S. will be
allowed to fly. Iraqis who are not are still barred.
(ABC-9)
-
White House News Summary
Thursday, February 7, 1991 -- B-7
AIRLINES/TERRORISM
CBS's Rita Braver reports on the airline terrorism scare. The FAA
is so concerned about the dramatic drop in air travel that airline
officials were summoned to a closed-door meeting in Washington to
discuss whether to further increase airport security, already at
the most stringent level in history. The decision today was that
security will not be increased for now.
(Thomas Kelly, Vice President Air Transport Assoc.: "We feel that
the security in place is sufficient and the American traveler is
very safe to travel on the American flights.")
Precautions already in place are causing many delays. But
passengers CBS talked to say they don't mind the inconvenience,
despite the fact that U.S. intelligence has picked up no specific
warnings of threats to American air carriers.
(CBS-6)
CBS's Ray Brady reports Pan American airlines is cutting its number
of flights abroad and is laying off another 4,000 workers, its
second round of layoffs since the Gulf crisis began. In 1990,
recession and the Gulf crisis resulted in nose-diving airline
profits. One expert says several airlines over the next year may
go out of business, with likely candidates being Pan Am, TWA and
Continental.
(CBS-7)
NEW YORK TRIP/PRESIDENT
Brokaw: Since the war started, President Bush's only trips away
from Washington have been to military bases in the south. But this
evening, he came to New York City -- to make a speech, and to make
a point.
NBC's John Cochran: The President scheduled this trip before he
made the decision to go to war. Now, despite the increased threat
of terrorism, he chose to come ahead.
(TV Coverage: President Bush going through receiving line.)
The President has made a point of saying he will not be held
hostage in the White House by Saddam, who has urged acts of
violence against U.S. interests everywhere in the world. But with
increased security, Bush felt he was not really taking any chances.
(TV Coverage: Demonstrations.)
Anti-war demonstrators were kept well away from the President.
(TV Coverage: President Bush signing legislation.)
Earlier, at the White House, Bush signed legislation to help some
veterans of an earlier war -- Vietnam. One criticism aimed at
former President Johnson was that he micromanaged the war by
second-guessing and overruling his military commanders. Bush has
emphasized he will permit the military to make tactical decisions.
(President Bush: "And one of the things that I take great pride
in, and I think everybody here understands it is, is that we're not
second-guessing. My obligations are, as Commander-in-Chief, but
we're not going to be second-guessing. Once again, we're not going
have these courageous young men and women over there fighting some
kind of a limited agenda, and fighting with their hands tied behind
their back. We went through that, and we're never going to do it
again, as far as I'm concerned. Thank you." [applause])
The President also said the war is going "darned well." And to
quote him again, the President said, "The war will not take that
long." He did not say how long is long.
(NBC-14)
-920m-
White House News Summary
Thursday, February 7, 1991 -- B-8
NBC's Stan Bernard reports on the President's security detail for
the New York trip. The Secret Service said the President would be
provided with what they called the normal security package.
(TV Coverage: NYPD officers behind barricades.)
Thousands of police were called in from precincts across the city.
A number of midtown streets were closed off. Those in charge of
security said this was normal. If New York City police are good
at anything, it is crowd control.
(TV Coverage: Demonstrations.)
A number of anti-war groups had promised massive demonstrations
near the President's route from Central Park and the Hilton Hotel.
The rainy weather and a route change by the President put a damper
on the display of anti-war sentiment. The demonstrators numbered
in the hundreds rather than the promised thousands.
(NBC-15)
Jennings: President Bush flew to New York City late today to speak
to business leaders.
(TV Coverage: President Bush and First Lady walking off plane.)
He will try to convince them the recession will be brief and
economic recovery not far off. Outside the hotel where the
President spoke, demonstrators gathered in the rain to demonstrate
against the war.
(TV Coverage: Demonstrators.)
(ABC-11)
NBC's Keith Morrison reports on reaction to the President signing
Agent Orange legislation today.
(President Bush: "We are here today to ensure that our nation will
ever remember those who defended her.")
It has been a long time coming. Some studies have blamed Agent
Orange for 27 diseases, several of them fatal. The law Bush signed
today will provide compensation for three of those diseases. Even
the admiral who ordered the spraying who lost his son to the
effects of Agent Orange agreed today the bill was watered-down.
(Adm. Elmo Zumwalt: "In the face of the strong pressure from
chemical companies and from congressmen responsive to the chemical
companies.")
And the veterans?
(Vietnam veteran: "Catch-22. You can't receive benefits for Agent
Orange poisoning until you're dying. And by the time you get the
check, you're dead.")
The National Association of Veterans called the bill a good start.
And Jim Dean, who has a brain tumor from the defoliant and
struggles on as best he can, says this:
(Dean: "I think it's a load of [unintelligible].";
(NBC-18)
BALTICS/CFE TREATY
Jennings: The White House has announced plans to send millions of
dollars worth of medical aid to the Baltic republics, which had
appealed directly to Washington without going through Soviet
bureaucracy. The White House says the Soviet government was
advised of the aid and did not object.
(ABC-10)
NBC's John Dancy reports on the recently chilly U.S.-Soviet
relations. Today in both countries, the temperature dropped a few
more degrees. President Gorbachev went on television unexpectedly
to say he intends to keep the Soviet Union together at all costs,
adding, "All my convictions are based on preservation of the
union."
-
White House News Summary
Thursday, February 7, 1991 -- B-9
Dancy continues:
(Secretary Baker, testifying to Congress: "Perestroika cannot
succeed at gunpoint.")
In Washington, Secretary Baker was warning the Soviet government
against trying to put down freedom movements in the Baltics.
(Baker: "There is simply no justification at all for the use of
force against peaceful and democratically elected governments.")
To show solidarity, the White House said the U.S. will distribute
$5 million in medical supplies to the three Baltic states. Baker
said the objective is to help the Baltics, not to punish the USSR.
(Baker: "The Soviet leadership is at a crossroads. We have made
clear that their last several steps have taken them down a path of
no benefit for them or for us or for anyone else.")
In addition, the CFE agreement is in trouble. The Soviet
government has taken three divisions of troops from Europe and
declared them to be naval infantry units, which are not covered.
(Baker: "When we have problems such as this affecting the
Conventional Forces agreement that go to the heart of, at least as
we see it, of credibility and trust, it makes it much more
difficult to conclude other agreements.")
(NBC-17, CBS-8)
SOVIET CENSORSHIP
CBS's Anthony Mason reports on the return to censorship on Soviet
radio and television. Radio Russia, which has frequently
criticized President Gorbachev, had its audience cut in half by the
government. And Boris Yeltsin tonight said he personally had asked
for time on national television and was refused it. Both orders
came from Gorbachev's new chief of State Radio and Television,
Leonid Kravchenko. He has been slowly suppressing criticism of
Gorbachev. "This is not a question of democracy," Kravchenko said
today. "State television is in the business of criticizing the
government. In this difficult time it would be tragic if we didn't
support the president."
(CBS-9)
A-12 DEFERRAL
NBC's Katherine Couric reports on Secretary Cheney's two-year
deferral of more than a billion dollars due the government from
McDonnell Douglas and General Dynamics for the botched A-12 Avenger
project. The government decided that for national security
reasons, the two companies needed to stay afloat.
(NBC-12)
AIDS
NBC's Robert Bazell reports that federal health officials expect
100,000 people will die of AIDS within the next three years, a
number equal to those already dead. Health officials expect to see
more deaths from inner cities, including many women and children.
Longtime AIDS activists say many people are starting to forget
about AIDS, just when the big wave is about to hit.
(NBC-6)
SOVIET SPACE STATION
Rather reports Soviet officials say sometime before dawn Thursday,
the 40-ton Salyut-7 space station is expected to drop out of orbit
after nIne years up there. Officials estimate that up to two tons
could survive re-entry -- and end up anywhere.
(CBS-10)
-End of B-Section-
EDITORIALS/COLUMNISTS
BUDGET (cont'd)
Ouch -- The Deficit Is still Huge -- "Viewing the world through
decidedly rose-tinted glasses, the Bush Administration has
presented a federal budget with a deficit it claims will run to a
mere $281 billion
That figure could easily balloon to more
than $450 billion
The large matter of deficits aside, the Bush
budget document is interesting
The budget shifts money to
science and to highways. This is exactly the kind of
infrastructure spending that should become a top national
priority
Transferring money from military science to civilian
science also makes good sense
The Administration's domestic
priorities are right, too
In defense, much skepticism is due.
The bottom-line problem with this budget is the bottom line.
The deficit is still far too large.
(Dallas Morning News, 2/5)
Nibbling At The Margins -- "In the midst of a large-scale war, it's
hard to criticize a President for a budget that does little more
than shuffle a few chairs around the fiscal deck
At
best,
however, this budget shows an Administration on intellectual
hold
The best tool for getting the economy moving, a sharp
cut in the capital gains tax, is mentioned only in passing in the
budget proposals
President Bush's nervousness about the
fairness argument are is reflected in the proposal to raise
Medicare premiums for people in top income brackets
That's
essentially a form of progressive taxation
Fairness, rather
than growth, once again is dominating what passes for political
thought in Washington."
(Detroit News, 2/6)
A Credible Call For Budget Rigor -- "Honesty in budgeting, at last:
What a refreshing change for Washington. The Bush Administration
sent Congress a credible, if rigorous, budget proposal, challenging
the nation to confront difficult choices in an era of austerity
This steady-as-you-go budget may not be exciting, but it is a
plausible plan for enduring a nationwide recession
Mercifully,
the misguided call for an unbalanced cut in the tax rate on
capital gains will be consigned this year to a study panel, where
it should cause no further trouble. (Cleveland Plain Dealer, 2/6)
With A Little Luck, A Realistic Budget -- " The Administration's
budget for fiscal year 1992 is a sober attempt to stick to spending
restrictions even in the face of recession, the Gulf war and the
S&L bailout. The proposal avoids controversial initiatives that
might weaken Bush's war support, but it nevertheless confronts
reality and admits the unpredictability of what lies ahead.
(Chicago Tribune, 2/6)
Bush's Choices -- " In his 1992 budget, President Bush has chosen
[his priorities]. Some of his spending ideas are intriguing;
others purely unfair. Taken together, they reveal that he remains
intent on giving the nation 'kinder, gentler' rhetoric -- while
pursuing budget policies that belie it
And yet, there is one
major advance in the budget: Bush has proposed curtailing
automatic government benefits to the well-off."
(Newsday, 2/5)
-End of News Summary-
ECONOMIC CLUB OF NEW YORK
NEW YORK HILTON, NEW YORK CITY
WEDNESDAY, FEB. 6, 1991
8:30 P.M.
THANK YOU, DICK [[VOELL, CLUB CH.1]. SECRETARY
BRADY. RAY PRICE. AND THANK YOU, EACH ONE OF YOU --
NOT FOR STANDING UP TO GREET ME -- BUT FOR STANDING UP
FOR ALL THOSE FIGHTING AGAINST AGGRESSION TONIGHT IN
THE PERSIAN GULF -- AND ESPECIALLY -- THE FIGHTING MEN
AND WOMEN OF THE UNITED STATES OF AMERICA. III
((LOOKING AROUND AT THIS DAIS AND AT THE AUDIENCE,
I WONDER WHO'S HOME MINDING THE G.N.P.! 11 SOME
STAR-STUDDED AUDIENCE.))
THIS YEAR MARKS A DEFINING HOUR -- A MOMENT OF
TRUTH -- FOR THIS GENERATION, FOR THIS COUNTRY, AND FOR
THE UNITED NATIONS, TOO. WE WERE PATIENT AND WE WERE
CAUTIOUS. BUT WHEN THE MOMENT OF TRUTH CAME, AMERICA
AND THE WORLD DID WHAT WAS MORAL, WHAT WAS JUST, AND
WHAT WAS RIGHT. III
WE SAID THE OCCUPATION OF KUWAIT WOULD NOT STAND.
- 2 -
AND THREE WEEKS AGO TONIGHT, AT JUST ABOUT THIS
TIME, WE ANNOUNCED THAT THE LIBERATION OF KUWAIT HAD
BEGUN. III
THREE WEEKS AGO TONIGHT, ALLIED FORCES MOVED TO
END A CONFLICT WE DID NOT SEEK AND DID NOT BEGIN. BUT
LADIES AND GENTLEMEN -- IT'S ONE WE AND OUR ALLIES WILL
FINISH. III
TONIGHT WE ARE ON COURSE AND ON SCHEDULE. MISSION
BY MISSION, HOUR BY HOUR, IRAQ'S CAPACITY TO WAGE WAR
IS BEING SYSTEMATICALLY DESTROYED BY AMERICAN AND
COALITION FORCES.
THE ROAD TO REAL PEACE WILL BE LONG AND TOUGH.
BUT WE WILL PREVAIL. AND WHEN WE DO, WE WILL HAVE
BEFORE US AN HISTORIC OPPORTUNITY. FROM THE CONFLUENCE
OF THE TIGRIS AND EUPHRATES - -- WHERE CIVILIZATION BEGAN
-- CIVILIZED BEHAVIOR CAN BEGIN ANEW. WE CAN BUILD A
BETTER WORLD A NEW WORLD ORDER. III
- 3 -
TONIGHT, THE WORLD IS UNITED BY SHARED
COMMITMENTS, SHARED INTERESTS, SHARED HOPES. OUR
EFFORTS WILL DETERMINE THE KIND OF LEGACY WE BEQUEATH
OUR CHILDREN, THE KIND OF WORLD THEY WILL LIVE IN. AND
so, LET US RE-DEDICATE OURSELVES TO THE IDEALS IN WHICH
OUR TROOPS so RESOLUTELY BELIEVE. BECAUSE IN THE FINAL
ANALYSIS, AMERICA AND HER PARTNERS WILL BE MEASURED NOT
BY HOW WE WAGE WAR BUT HOW WE MAKE PEACE. 111
I SAID IN MY STATE OF THE UNION ADDRESS THAT "WE
ARE THE NATION THAT CAN SHAPE THE FUTURE." AND SHAPING
THE FUTURE IS A JOB THAT BEGINS AT HOME: LONG-TERM
ECONOMIC GROWTH IS CENTRAL TO QUALITY OF LIFE FOR
AMERICA'S FAMILIES, QUALITY OF DECENCY FOR AMERICA'S
COMMUNITIES, AND TO THE QUALITY OF LEADERSHIP AMERICA
CAN BRING IN ITS SPECIAL ROLE AS THE WORLD'S LEADING
DIPLOMATIC, CULTURAL, AND ECONOMIC POWER.
- 4 -
JUST OVER EIGHT YEARS AGO, WHEN WE CAME OUT OF
RECESSION, THE LONGEST PEACETIME EXPANSION IN AMERICAN
HISTORY BEGAN. WORKING TOGETHER, WE CREATED MILLIONS
OF NEW JOBS, AND CUT BOTH INTEREST RATES AND INFLATION
IN HALF -- A TRIUMPH DRIVEN BY THE ENERGIES OF THE MOST
DYNAMIC AND DIVERSE ECONOMY ON EARTH. III
AGAINST THIS BACKGROUND, THE EVENTS OF 1990 SERVED
TO REMIND US THAT EVEN A FUNDAMENTALLY HEALTHY ECONOMY
FACES THE RISK OF TEMPORARY DISTURBANCES AND SHORT-
TERM SETBACKS. FOR EXAMPLE, WHEN IRAQ INVADED KUWAIT
IN AUGUST 1990, IT WAS A SHOCK TO THE WORLD'S
CONSCIENCE. BUSINESS AND CONSUMER CONFIDENCE FELL.
OIL PRICES ROSE. INFLATION WORRIES ROSE. AND INTEREST
RATES REFLECTED AN EXTRA RISK PREMIUM. TAKEN TOGETHER,
THIS PRODUCED A VERY REAL BLOW TO AN ECONOMY THAT HAD
ALREADY SLOWED.
- 5 -
BUT MAKE NO MISTAKE: THE CURRENT RECESSION DOES
NOT SIGNAL ANY DECLINE IN THE FUNDAMENTAL, LONG-TERM
HEALTH OR BASIC VITALITY OF OUR ECONOMY. AMERICA IS A
"CAN DO" NATION. AND AMERICA IS HOME TO THE LARGEST,
MOST PRODUCTIVE ECONOMY ON EARTH.
OUR ADMINISTRATION'S ECONOMIC POLICIES ARE
DESIGNED TO STRENGTHEN THE FOUNDATION FOR A SOLID
RECOVERY AND GUARANTEE THE HIGHEST POSSIBLE RATE OF
SUSTAINED ECONOMIC GROWTH. I DESCRIBED THE THREE
PILLARS OF THAT FOUNDATION IN THE STATE OF THE UNION
ADDRESS: ENCOURAGING ECONOMIC GROWTH; INVESTING IN THE
FUTURE; AND GIVING POWER AND OPPORTUNITY TO THE
INDIVIDUAL. III
- 6 -
ENCOURAGING ECONOMIC GROWTH MEANS REDUCING FEDERAL
BORROWING -- BY CUTTING THE GROWTH OF FEDERAL
SPENDING. THAT'S WHY WE SENT CONGRESS A BUDGET
PROPOSAL THAT HOLDS SPENDING GROWTH BELOW THE RATE OF
INFLATION -- THE LOWEST INCREASE IN SPENDING IN FIVE
YEARS. AND THAT'S WHY THE BUDGET LAW WAS ARMED WITH
REAL TEETH -- "PAY-AS-YOU-GO" PROVISIONS AND
ENFORCEABLE SPENDING CAPS -- AIMED AT CUTTING THE
GROWTH OF DEBT BY NEARLY HALF A TRILLION DOLLARS.
TRUE, THE DEFICIT IS HIGH -- UNACCEPTABLY HIGH. THE
S & L COSTS, THE WAR, AND THE ECONOMIC DECLINE HAVEN'T
HELPED A BIT. BUT THANKS TO THE BUDGETARY REFORMS
BEGUN LAST FALL, THE DEFICIT WILL BE VIRTUALLY
ELIMINATED BY 1995.
TO ENSURE ECONOMIC GROWTH, THIS ADMINISTRATION
WILL ALSO REDOUBLE ITS EFFORTS TO WEED OUT COUNTER-
PRODUCTIVE GOVERNMENT REGULATIONS. THE MARKET MUST BE
ALLOWED TO WORK WITHOUT UNNECESSARY FEDERAL
INTERVENTION. III
- 7 -
WE MUST ALSO FUEL ECONOMIC GROWTH BY PROVIDING
INCENTIVES TO PROMOTE PRIVATE SAVINGS AND JOB-CREATING
INVESTMENT. OUR BUDGET INCLUDES TAX-FREE FAMILY
SAVINGS ACCOUNTS; PENALTY-FREE I.R.A. WITHDRAWALS FOR
FIRST-TIME HOME BUYERS; AND A REDUCED TAX FOR LONG-
TERM CAPITAL GAINS. THAT WILL HELP BRING DOWN THE COST
OF CAPITAL, WHICH WILL HELP AMERICAN BUSINESSES COMPETE
AT HOME AND ABROAD.
WE MUST ALSO RENEW OUR INVESTMENTS IN AMERICA'S
FUTURE. THAT MEANS INVESTING IN THE EDUCATION AND
SAFETY OF OUR CHILDREN. INVESTING IN THE INFRASTRUCTURE
OF OUR TRANSPORTATION SYSTEM. INVESTING IN REFORMS FOR
THE FINANCIAL SERVICES SYSTEM. INVESTING IN HIGH
TECHNOLOGY AND IN SPACE.
- 8 -
THE BUDGET PROPOSAL WE SENT TO CAPITOL HILL HAS
BEEN WELL-RECEIVED. IT INCLUDES A RECORD $76 BILLION
FOR RESEARCH AND DEVELOPMENT, ONE OF THE MOST IMPORTANT
INVESTMENTS WE CAN MAKE IN THE LONG-TERM ECONOMIC AND
MILITARY STRENGTH OF OUR NATION. IT ALSO RECOGNIZES
THAT GOVERNMENT MUST HELP TRANSLATE THE RESULTS OF
BASIC RESEARCH INTO THE GENERIC TECHNOLOGIES THAT
STRENGTHEN OUR INDUSTRIES AND IMPROVE OUR LIVES. III
THIS ISN'T AN INVESTMENT IN MACHINES -- IT'S AN
INVESTMENT IN PEOPLE -- IN THE SCIENTISTS, ENGINEERS
AND EDUCATORS WHO WILL PRODUCE THE ADVANCES OF THE 21ST
CENTURY. AND TOGETHER WITH THE NATION'S GOVERNORS, WE
HAVE LAUNCHED A COMPREHENSIVE EFFORT AT REFORM AND
RESTRUCTURING, AIMED AT PRODUCING AN EDUCATIONAL
RENAISSANCE.
WE'VE STILL GOT A LONG WAY TO GO. BUT WE WON'T
SELL OUR KIDS SHORT. AS ONE OBSERVER SAID OF THE
TROOPS MANNING PATRIOT MISSILES IN THE GULF: "IN ONE
DAY, THEY WIPED OUT THE IDEA THAT YOUNG AMERICANS ARE
NOT SMART ENOUGH FOR THE 21ST CENTURY." III
- 9 -
INVESTING IN THE FUTURE ALSO MEANS MODERNIZING OUR
FINANCIAL SYSTEM -- WHICH IS EXACTLY WHAT OUR ABLE
SECRETARY OF THE TREASURY UNVEILED YESTERDAY WITH OUR
BANKING REFORM PROPOSALS. THESE REFORMS WILL CONTINUE
TO PROTECT EVERY INSURED DEPOSITOR IN AMERICA. BUT
THEY WILL ALSO ADDRESS THE REALITY OF THE MODERN
FINANCIAL MARKETPLACE BY CREATING A U.S. FINANCIAL
SYSTEM THAT PROTECTS TAXPAYERS, SERVES CONSUMERS, AND
STRENGTHENS OUR ECONOMY. WE DON'T WANT TO BE BACK
AGAIN IN A COUPLE OF YEARS TO DO THIS ALL OVER AGAIN.
THAT'S WHY HALF-WAY SOLUTIONS WON'T DO -- WE HAVE TO DO
THE WHOLE JOB, AND WE HAVE TO DO IT NOW. III
THE CHALLENGES AHEAD ARE GREAT. BUT BY ANY
HISTORICAL STANDARD, THE CURRENT DOWNTURN IS EXPECTED
TO BE MILD AND BRIEF. AND TODAY IN AMERICA, THE BOTTOM
LINE IS THIS: WHILE OUR ECONOMY MAY BE BESET BY
DIFFICULTY -- IT SHOULD NOT BE BESET BY DOUBT.
- 10 -
A HEALTHY SENSE OF CONFIDENCE IS BACKED BY THE
FACTS. INFLATION HAS BEEN KEPT UNDER CONTROL.
INTEREST RATES ARE BEGINNING TO DECLINE FURTHER. THE
TRADE DEFICIT DECLINED FOR THE THIRD YEAR IN A ROW.
INVENTORIES HAVE BEEN KEPT DOWN, REDUCING THE NEED FOR
PRODUCTION CUTS TO WORK OFF EXCESS INVENTORY. BECAUSE
OUR MAJOR TRADING PARTNERS ARE SEEING RELATIVELY STRONG
GROWTH, AND THE PRICE OF U.S. EXPORTS ON WORLD MARKETS
REMAINS LOW, THE PACE OF U.S. EXPORTS WILL CONTINUE TO
SET RECORD HIGHS.
IN SPITE OF MANY PRE-WAR PREDICTIONS THAT A GULF
WAR WOULD SEND OIL UP TO $80 A BARREL, OIL PRICES HAVE
FALLEN SUBSTANTIALLY SINCE THEIR PEAKS IN OCTOBER,
ESPECIALLY SINCE THE START OF OPERATION DESERT STORM.
I BELIEVE THAT BY STANDING UP TO AGGRESSION IN THE
GULF, WE ARE GUARANTEEING THE FUTURE SECURITY AND
STABILITY OF THAT AREA, THAT IS so VITAL TO GLOBAL
ECONOMIC PROSPERITY. III
- 11 -
LATER THIS MONTH, THE ADMINISTRATION WILL RELEASE
ITS NATIONAL ENERGY STRATEGY. THE STRATEGY WILL
PROPOSE FEDERAL, STATE AND PRIVATE SECTOR INITIATIVES
TO INCREASE ENERGY EFFICIENCY AND CONSERVATION. IT
RECOGNIZES THE NEED FOR CREATING A CLEAN, SAFE
ENVIRONMENT. AND IT ALSO RECOGNIZES THAT WE MUST FIND
MORE DOMESTIC OIL AND GAS, AND USE MORE ALTERNATIVE
SOURCES OF ENERGY.
OUR STRATEGY IS DESIGNED TO REDUCE OUR
VULNERABILITY TO FOREIGN OIL SUPPLY DISRUPTIONS. SOME
WILL ARGUE THAT REDUCING OUR ENERGY VULNERABILITY IS
NOT ENOUGH, AND THAT WE SHOULD EMBARK UPON MORE DRASTIC
MEASURES DESIGNED TO ACHIEVE TOTAL ENERGY INDEPENDENCE.
THE REALITY IS THAT WE ARE A LONG WAY FROM TOTAL ENERGY
INDEPENDENCE. WE MUST AVOID UNWISE AND EXTREME
MEASURES THAT WOULD SERIOUSLY HURT AMERICAN CONSUMERS,
AMERICAN JOBS, AND AMERICAN INDUSTRIES. III
- 12 -
YES, WE MUST BEGIN REDUCING OUR ENERGY
VULNERABILITY NOW. OUR NEW STRATEGY WILL DO THAT
BECAUSE IT IS PRUDENT, BALANCED, AND COMPREHENSIVE.
AND FINALLY, DON'T FORGET ANOTHER UNDERLYING
STRENGTH OF OUR ECONOMY: THE FLEXIBILITY OF AMERICA'S
FREE MARKET SYSTEM. TO PRESERVE THIS FLEXIBILITY, WE
MUST KEEP OUR MARKETS OPEN AND HOLD GOVERNMENT
RESTRICTIONS TO A MINIMUM. THIS IS NOT EASY. I WILL
CONTINUE TO OPPOSE PROTECTIONISM, AND CONTINUE TO FIGHT
FOR A LEVEL PLAYING FIELD, so THAT INTERNATIONAL TRADE
IS FREE -- AND FAIR. III
THAT IS WHAT WE ARE DOING IN THE URUGUAY ROUND OF
TRADE NEGOTIATIONS -- TRYING TO LOWER BARRIERS TO THE
FREE FLOW OF GOODS AND SERVICES AROUND THE WORLD. THAT
IS ALSO WHAT WE SEEK IN THE NEGOTIATIONS WE WILL LAUNCH
THIS YEAR WITH MEXICO AND CANADA TO CREATE A NORTH
AMERICAN FREE TRADE AREA. AND OUR ENTERPRISE FOR THE
AMERICAS INITIATIVE IS INTENDED TO EXTEND THE BENEFITS
OF FLEXIBILITY THROUGHOUT THE WESTERN HEMISPHERE.
- 13 -
TO BUILD A NEW, PEACEFUL WORLD ORDER, WE MUST ALSO
SECURE THE DEMOCRATIC TRIUMPHS OF THE PAST YEAR. I AM
THINKING ESPECIALLY OF THE "REVOLUTION OF '89." THE
NEW DEMOCRACIES IN CENTRAL AND EASTERN EUROPE INSPIRE
US ALL WITH THEIR COMMITMENT TO FREE SOCIETIES AND FREE
MARKET ECONOMIES, BUT THEY FACE DAUNTING OBSTACLES FROM
THE COMMUNIST PAST, AS WELL AS SEVERE NEW PROBLEMS
BROUGHT ON BY LOST MARKETS AND HIGHER OIL PRICES.
OUR ADMINISTRATION IS COMMITTED TO HELP AND
COMMITTED TO LEAD: DESPITE THE BURDEN WE ARE BEARING
IN THE GULF, I HAVE ASKED CONGRESS FOR $470 MILLION IN
NEW ASSISTANCE FOR CENTRAL AND EASTERN EUROPE, A
SUBSTANTIAL INCREASE OVER LAST YEAR'S REQUEST.
FOUR DECADES AGO, THE MARSHALL PLAN HELPED BUILD A
WEST EUROPEAN ZONE OF PROSPERITY AND SECURITY THAT
GREATLY BENEFITTED THE UNITED STATES. TOGETHER WITH
OUR WEST EUROPEAN PARTNERS, WE CAN NOW EXTEND THIS
SUCCESS TO CREATE A EUROPE WHOLE AND FREE -- AN ENTIRE
CONTINENT OF PROSPERITY AND STABILITY THAT FULFILLS THE
VISION OF THE MARSHALL PLAN.
- 14 -
WITH THEIR GREAT HUMAN POTENTIAL AND COMMITMENT TO
MARKET ECONOMIC REFORM, CENTRAL AND EASTERN EUROPEAN
COUNTRIES OFFER REAL OPPORTUNITIES FOR U.S. TRADE AND
INVESTMENT. I URGE AMERICAN BUSINESS TO SEIZE THESE
OPPORTUNITIES, AS MANY ARE DOING. G.E.'S JACK WELCH
WEIGHED IN WITH A $150 MILLION JOINT VENTURE WITH
TUNGSRAM IN HUNGARY. UNION PACIFIC'S DREW LEWIS
STEPPED UP TO THE PLATE WITH AN IMPRESSIVE EFFORT TO
MODERNIZE POLAND'S RAILROADS. AND BELL ATLANTIC AND
U.S. WEST HAVE BEGUN AN $80 MILLION TELECOMMUNICATIONS
VENTURE IN CZECHOSLOVAKIA.
HISTORY IS MOVING DECISIVELY IN FAVOR OF FREEDOM
-- THANKS, IN LARGE PART, TO AMERICAN IDEALS AND
PERSEVERANCE. THE TOUCHSTONES OF THE MODERN WORLD --
WHICH THE EMERGING DEMOCRACIES ARE NOW STRIVING FOR --
ARE FREE MARKETS, FREE SPEECH, AND FREE ELECTIONS.
AMERICA HAS LIVED BY THESE TENETS FOR OVER 200 YEARS.
THEY HAVE GIVEN US BOTH OUR POWER -- AND OUR PURPOSE.
III
- 15 -
THAT IS WHY AMERICA AND OUR ALLIES ARE GOING TO
PREVAIL IN THE GULF. AND THAT IS WHY AMERICA AND OUR
PARTNERS ARE GOING TO PROSPER IN THE YEARS TO COME.
OUR BEST DAYS ARE BEFORE US. AND I CAN ASSURE YOU --
AMERICA, AND THE WORLD -- THAT WE WILL CONTINUE TO
FIGHT FOR PRINCIPLE. WE WILL CONTINUE TO DO THE HARD
WORK OF FREEDOM. III
THANK YOU. GOD BLESS THE TROOPS IN THE GULF. AND
GOD BLESS THE UNITED STATES OF AMERICA.
#
#
#
A22
REVIEW & OUTLOOK
One-Fourth of GNP
troù
$1,445,900,000,000.
But what it doesn't say is that budget
mar
$1.45 trillion. Trillion.
director Richard Darman had to pay
is ten
That's how much taxpayer money
Congress a monumental spending
count)
the Bush Administration proposed
bribe in 1991 to get his budget deal.
have &
yesterday to turn over to the federal
The most ill-timed tax increase in his-
ulation
government in Fiscal Year 1992.
tory also hasn't helped the economy.
pan wi,
We don't know what Texas Senator
The Tr
If SO huge a number seems surreal,
Phil Gramm and John Sununu were
propos
think of it as another Washington
U.S. A
landmark: This year, for the first
smoking when they said spending
univers
time since World War II, the federal
would fall to 18% of GNP under the
for our
government will spend more than 25%
budget agreement, but it must have
tually f
of the nation's annual wealth. One dol-
been something that induces
In a
lar of every four produced by working
dreams.
practice
Americans will be handed over to
Just about everyone in the Beltway
ally thro
gets to share in the spending boom.
ted dired
Congress and its various Departments
About the only real loser is defense
tions in 1
of Good Intentions.
are allow
As the nearby chart shows, this is
spending, despite the Iraq war. The
Treasur
a phenomenon of the Bush years. The
Pentagon will receive less after infla-
last Reagan. budget year, 1989, saw
tion for the sixth straight year. But
The T:
spending hit its lowest level in a dec-
from 1990 to 1991 overall spending is
likely to 1
with or 0
ade as a share of gross national prod-
expected to climb by some $157.9 bil-
commerci
lion, or an astonishing 13%, nearly
prohibited
three times the inflation rate.
The Budget Trend
other non-
Senator Bob Byrd's appropriators
technical
Receipts and outlays as percentage of GNP
get a sweet $12 billion, or 6.1%, more
and direct
25%
in fiscal 1992 on top of their
Indeed, it U
double-digit increases in 1991. Senator
to the univ
23%
Outlays
Gramm, erstwhile tightwad, gets
Univers
21%
120% more for the Superconducting
federal safe
Super Collider in Texas. Mr. Darman
access to th
der not just
19%
can boast of 13% more for his beloved
the econom)
space bureaucracy at NASA.
there may a
17%
Receipts
California Democrat Henry Wax-
pened in bo:
man gets a couple of more billion in
many and
15%
new Medicaid "benefits" to impose on
where it is
1976
'80
'85
'90 '91*
the states. Governor Bill Clinton, the
understood ti
Source: OMB
*Estimated
Arkansas Democrat, says Mr. Wax-
central banks
man is trying to create nationalized
never permit
uct-22.3%. But in only two Bush
tors at any
years, federal outlays will have
health care, "using Medicaid as the
bank to take
vehicle and the state's credit cards as
soared by three percentage points of
America, toc
GNP. This is a bigger spending boom
the financing mechanism." And the
icy-witness
in two years than the spendthrift Car-
Bush Administration is helping him.
positors of th
ter Administration was able to
Its proposed $25 billion "cut" in Medi-
at least it doe
achieve in four.
care is nothing more than another tax
vestments
in
increase on the well-to-do elderly, plus
industries.
This Beltway boom can't be dis-
another turn of the bureaucratic
Of course, E
missed as a mere recession effect.
ing might ansv
screw on doctors and hospitals. This
The Bush budget assumes economic
big to fail." Tl
GOP constituency will soon be beg-
is threatened b
growth of nearly 1% this year, and
ging for Mr. Waxman's agenda as the
surance or con
zero growth last year. If the current
least awful alternative.
posit insurer W
economic downturn lasts longer than
Mr. Darman tried mightily yester-
deed, there is !
this March or April, spending will
day to claim this is a "reform
even among tl.
soar to even greater heights.
budget." And there are some good
Meanwhile, even with little or no
things in it, not least talk of "choice"
economic growth, federal tax receipts
in education and the cancellation of
are back where they were before the
238 domestic programs. But last
Reagan tax cuts. As the chart also
year's budget had similar proposals,
shows, taxes are creeping back up to
By
and virtually nothing was killed in the
As the prospe
one-fifth of GNP. This should prove
end. Why should anyone, least of all
Saddam Husseir.
once and for all that budget deficits
Congress. believe Mr. Darman is seri-
in political
are a function of spending. not tax
ous when federal spending on his
Tet. a repeat 0
cuts. While marginal tax rates are
watch is careening to post-war rec-
prise 1968 offen
lower than in 1980, by nearly every
ords? "Reform" is certainly needed.
nam's cities, a P
other measure the nation's tax burden
but it requires more political commit-
in Lyndon John:
On the battlefi
is greater than ever.
ment than an annual budget essay.
bloody setback !
All of this is happening, we should
With the country in recession, fam-
guerrillas never !
add, despite the celebrated budget ac-
ilies are having to scrimp, while
of the communist
cord of 1990. Or more likely, because
states and cities are slashing budgets.
an (abortive raio
of it. The Bush budget proposes to in-
The only place where it's spending-as-
Saigon, shook the
crease 1992 spending by only 2.6%.
usual is Fat City, USA.
gress, overwheln
especially TV, an
in Washington tha
announcement on
The Scarlet Letter
'ld not seek re
ilks.
SC
of a story when
Mr.
nie Sanders got
of Represent
1. deficit
From Andy Mitrusi, dep.
-1991 x 3186 deficit (dontuse exact#stho')
-Because of budgetary reforms enacted in Fall'90,
by 1995 the deficit will be virtually eliminated.
-Reason it's so high is b/c of unexpected events
i.e. Gulf
consumer confidence
oil prices
after 8/2 everything collapsed
automatic stabilizers in budget - (Broadman)
2. WSJ - why it's Ter than RR
- -Recession coming on, it
our need to spend
- -S&L bailout, which grew thru 80's ₫ we
7
why la.
also B/C deposit
all afan of the softness of the economy
lg diff what of what we take in
& goes out.
To CAROL
Date JAN30
Time 3:05
WHILE YOU WERE OUT
M SARA HilldeberAND
of
Phone 566. 2278
Area Code
Number
Extension
TELEPHONED
PLEASE CALL
CALLED TO SEE YOU
WILL CALL AGAIN
WANTS TO SEE YOU
URGENT
RETURNED YOUR CALL
Message FROM TREASURY
Dept. ON A
suggestion FROM
CABINET AFFAIRS.
JPS
Operator
AMPAD
EFFICIENCY®
23-020
DII
.M54
WHRC
t:
THE ALMANAC
OF DATES
EVENTS OF THE PAST FOR
ALMANAC OF DATES
EVERY DAY OF THE YEAR
THE
Events
of the Past
for Every Day
LINDA MILLGATE
of the Year
HBU
Harcourt Brace Jovanovich New York and London
Copyright © 1977 by Linda Millgate
All rights reserved. No part of this publication
9-78 EW
ACKNOWLEDGMENT
may be reproduced or transmitted in any form or
by any means, electronic or mechanical, including
photocopy, recording, or any information storage
and retrieval system, without permission in
both fact and fiction, anyone who has published anything
Encyclopedists, almanac compilers, historical writers of
writing from the publisher.
with a full date in it--thank you.
Printed in the United States of America
Library of Congress Cataloging in Publication Data
Millgate, Linda
The almanac of dates.
1. Calendars. I. Title.
D11.5 .M565
902'.02
76-27408
ISBN 0-15-145773-5
First edition
BCDE
To my parents who knew I would finally succeed in spite
of never knowing what I would try next.
1970
Start of Cambridge, Maryland, Muskrat-skinning
1913, 1940, 2008 Ash Wednesday, beginning of
Championship
Lent
1972
Marianne Moore, poet and baseball fan, died
1951. 2035, 2046 Shrove Tuesday
1913, 1940, 2008 Shrove Tuesday
February 7th
February 6th
Feast of St. Romuald
Feast of St. Theodore the General
Feast of St. Dorothy, martyr
1478 AD
Sir Thomas More, English statesman, born
Feast of St. Photius, patriarch of Constan-
1639
French Academy began its great dictionary
tinople
of the French language
Feast of St. Titus, first missionary to Crete
1799
Ch'ing Lung, Chinese emperor, died
Feast of St. Vaast (Gaston), patron of child-
1804
John Deere, steel-plow inventor, born
ren who are slow to walk
1812
Great North American earthquake
Kannokura ("Where the Gods Live"), festival of
Charles Dickens, author, born
the Shinto religion
1837
King Gustavus IV of Sweden died in exile
337 AD
Julius I became Pope
1863
Orpheus wrecked off New Zealand
679
St. Amand of Maastricht, missionary-bishop,
1864
Housatanic, (Union) sunk by H.L. Hunley
died (Feast Day)
(Confederate), 1st warship sinking
1519
Sir Walter Raleigh left England to explore
by a submarine
Guiana, S. America
1878
Pope Pius IX died
1564
Christopher Marlowe, English playwright, born
1885
Sinclair Lewis, novelist, born
1665
Queen Anne of England born
1894
Mississippi adopted its state flag
1670
Frederick III, King of Denmark and Norway, died
1901
Queen Wilhelmina of Holland married Henry,
1682
LaSalle sighted the Mississippi River
Duke of Mecklenburgh-Schwerin
1685
King Charles II of England died
1904
Baltimore business district fire
1704
Pope Clement XII died
1915
First wireless message sent from a moving train
1756
Aaron Burr, U.S. vice-president, born
to a station
1778
French-American treaty signed for aid against
1929
Christina, Queen Regent of Spain, died
England
1950
U.S. recognized South Viet Nam
1788
Massachusetts ratified the Constitution
1970
Final Day of the Muskrat-skinning Champion-
1833
Otto, German-born king of Greece, arrived
ship at Cambridge, Maryland
in his kingdom
1951, 2035, 2046, Ash Wednesday
1838
Zulu warriors massacred Dutch settlers in Natal,
1967, 1978, 1989, 2062, 2073 Shrove Tuesday
S. Africa
1862
Fort Henry fell to Union forces
1873
Peru and Bolivia signed a mutual-defense agree-
February 8th
ment
1895
Babe Ruth, baseball great, born
Feast of St. Cuthman
1899
Congress ratified the treaty ending the
Feast of St. John Matha
Spanish-American War
1250 Ad 7th Crusade rested at Mansura, Egypt, and fought
1904
Russo-Japanese War began
a battle
1911
Ronald Reagan, actor-politician, born
1587
Mary, Queen of Scots, beheaded
1922
Limitation of Armaments Conference ended
1601
Earl of Essex attempted a rebellion against
(Washington, D.C.)
Elizabeth I, Queen of England
1936
Start of Garmisch-Partenkirchen, Germany,
1643
Start of the first Fair at Irbit, Russia
Olympics
1690
French and Indians attacked Schenectady, New
1951
Train wreck at Woodbridge, New Jersey
York
1952
King George VI of England died
1693
William and Mary College, 2nd in U.S.,
1954
Kashmir acceded to India
chartered
1968
Winter Olympics becan at Grenoble, France
1792
Mrs. Hannah Snell, a deserter from the army and
1970
Chinese Year of the Dog, 4668, began
who was wounded as a sailor,
1971
Central Italy rocked by an earthquake
died insane
INSTANT ALMANAC
of Events, Anniversaries,
Observances, Quotations,
and Birthdays
for Every Day
of the Year
Leonard and Thelma Spinrad
PARKER PUBLISHING COMPANY, INC.
West Nyack, N.Y.
DII
WH
11-24-72-RAC
How to Use
This Book
© 1972 by
Leonard and Thelma Spinrad
All rights reserved. No part of this book
may be reproduced in any form or by
any means, without permission in writ-
ing from the publisher.
Library of Congress
Every speaker, writer, teacher or editor faces the same questions
Catalog Card Number: 79-184333
when he sets out to work on a speech, an article or a lesson: What is
the best angle for getting into my subject, and how can I make it
timely? Sometimes there is an even more basic question: What shall I
write or talk about?
For the writer and editor, who often must work many months in
advance, finding the appropriate subject or a newsworthy way to
introduce that subject is a constant challenge. This book is designed
to meet that need, as well as to provide a treasury of topical
allusions, timely references and uniquely arranged and indexed
information.
If you were invited to be a Fourth of July speaker, it would be
hard to ignore the fact that you were speaking on the birthday of
American independence. But suppose you were asked to speak
before a patriotic group on, say, April 30th-or to give a lesson or to
write an article appearing on that date, with a patriotic theme.
Offhand it doesn't sound like a day with any particular patriotic
significance. But if you turn to April 30th in this book, you will find
several entries you can use. It happens to be the anniversary of the
inauguration of George Washington as President, as you will find
noted in the section headed "The day in history." It also happens to
be the date on which Bernard Baruch made a comment, listed as the
quotation of the day, which expresses some of the essence of the
American view of life.
Printed in the United States of America
Turn next to the beginning of April, the section devoted to the
ISBN-0-13-467621-1
B&P
month, preceding the individual days. There you will find a list of
5
44
February
February
45
Lindbergh 1902, Detroit; painter Fernand Leger 1881, Argentan,
The day in history:
France; actress Ida Lupino, London; feminist Betty Friedan, Peoria,
1690-First American paper money was issued by Massachusetts to
III.
pay soldiers fighting in war with Quebec.
Quotation of the day:
1865-Civil War peace-seeking conference was held secretly by
President Lincoln with Confederate Vice President Alexander H.
"Experience makes fools wise."-Daniel O'Connell, February 4, 1836
Stephens aboard a ship at Hampton Roads, Va.
"The issue between the Republicans and Democrats is clearly drawn.
1917-U.S. broke diplomatic relations with Germany; entered World
It has been deliberately drawn by those who have been in charge of
War I two months later.
twenty years of treason."-Joseph R. McCarthy, February 4, 1954
1919-Irish independence leader Eamon de Valera escaped from
Lincoln Gaol, England, coming to U.S. by way of Ireland.
FEBRUARY 5
The day's birthdays:
Zodiac sign for the day: Aquarius, the water boy.
Dr. Elizabeth Blackwell 1821, Bristol, England; editor Horace
Zodiac birthstone for the day: Garnet.
Greeley 1811, Amherst, N.H.; composer Felix Mendelssohn-
The day in history:
Bartholdy 1809, Hamburg, Germany; writer Gertrude Stein 1874,
1531-Roger Williams arrived in America.
Allegheny, Pa.; writer James Michener 1907, New York; artist
1818-Marshal Jean Bernadotte became King Charles XIV of
Norman Rockwell 1894, New York; conductor Erich Leinsdorf
Sweden.
1912, Vienna; inventor Hudson Maxim 1853, Orneville, Me.
1917-Mexican Constitution Day commemorates adoption of Consti-
Quotation of the day:
tution on this date.
"Is peace a rash system? Is it dangerous for nations to live in amity
1937-President Franklin D. Roosevelt proposed plan to enlarge
with each other?"-Charles James Fox, February 3, 1800
Supreme Court, described by opponents as "court packing." Plan
failed.
FEBRUARY 4
1962-The National Observer began publication as weekly news-
paper.
Zodiac sign for the day: Aquarius, the water boy.
Zodiac birthstone for the day: Garnet.
The day's birthdays:
Actress Maxine Elliott 1871, Rockland, Me.; statesman Sir Robert
The day in history:
Peel 1788, Bury, England; statesman Adlai E. Stevenson 1900, Los
1789-Electoral College named George Washington as President of
Angeles; baseball's Hank Aaron 1934, Mobile, Ala.; writer MacKinlay
U.S.
Kantor 1904, Webster City, Iowa.
1861-Confederate States of America organized in Montgomery, Ala.
1899-Philippine insurrection against rule of U.S. began, led by
Quotation of the day:
Emilio Aguinaldo.
"Terror is nothing else than justice, prompt, secure and inflexible!"
1932-First Winter Olympic Games began in Lake Placid, N.Y.
-Robespierre, February 5, 1794
1941-United Service Organizations, USO, founded to entertain U.S.
armed forces.
FEBRUARY 6
1948-Ceylon Independence Day marks Asian nation's becoming
Zodiac sign for the day: Aquarius, the water boy.
independent member of British Commonwealth in 1948.
Zodiac birthstone for the day: Garnet.
The day's birthdays:
The day in history:
Educator Mark Hopkins 1802, Stockbridge, Mass.; aviator Charles A.
1693-College of William and Mary chartered in Williamsburg, Va.
46
February
February
47
1778-France and U.S. signed Treaties of Commerce and Alliance.
1788-Massachusetts became 6th state to ratify U.S. Constitution.
-FEBRUARY 8
1840-New Zealand Day marks establishment of British rule in New
Zealand under Treaty of Waitingi on this date.
Zodiac sign for the day: Aquarius, the water boy.
1900-U.S. Senate ratified Treaty of Paris which ended Spanish-
Zodiac birthstone for the day: Garnet.
American War.
The day in history:
1933-Twentieth Amendment to U.S. Constitution, so-called Lame
1587-Mary, Queen of Scots, executed at Fotheringhay Castle,
Duck Amendment providing for January start of President's and
England.
Congressional terms of office, went into effect.
1910-Boy Scouts of America chartered in Washington, D.C.
1952-King George VI of Great Britain died and was succeeded on
1915-Birth of a Nation had its world premiere at Clune's Audito-
throne by his daughter, Queen Elizabeth II.
rium, Los Angeles.
The day's birthdays:
1949-Jozsef Cardinal Mindszenty sentenced to life imprisonment by
Baseball's Babe Ruth 1895, Baltimore; actor Sir Henry Irving 1838,
Communist Hungary. (He took refuge in the U.S. Embassy in
Somerset, England; Queen Anne of England 1665, England; Gover-
Budapest when he was released from jail in the Hungarian revolution
nor Ronald Reagan 1911, Tampico, Ill.; actress Zsa Zsa Gabor,
of 1956.)
Budapest.
The day's birthdays:
Quotation of the day:
General William Tecumseh Sherman 1820, Lancaster, Ohio; critic
"It is said that God is always for the big battalions."-Voltaire,
John Ruskin 1819, London; writer Jules Verne 1828, Nantes,
February 6, 1770
France; actress Lana Turner, Wallace, Idaho; actor Jack Lemmon
"Peace and justice are two sides of the same coin."-Dwight D.
1925, Boston.
Eisenhower, February 6, 1957
Quotation of the day:
FEBRUARY 7
"The changes between wet and dry are much more frequent and
sudden in Europe than in America. Though we have double the rain,
Zodiac sign for the day: Aquarius, the water boy.
it falls in half the time."-Thomas Jefferson, February 8, 1805
Zodiac birthstone for the day: Garnet.
FEBRUARY 9
The day in history:
1882-John L. Sullivan knocked out champion Paddy Ryan at
Zodiac sign for the day: Aquarius, the water boy.
Mississippi City, Miss. in 9th round to become the last bare knuckle
Zodiac birthstone for the day: Garnet.
world's heavyweight boxing champion.
1904-Fire destroyed most of business district of Baltimore, Md.
The day in history:
1936-Flag of the Vice President of the U.S. authorized.
1825-In only such instance in U.S. history, the son of a living
1950-U.S. recognized Saigon government of Vietnam.
former President was himself elected President of U.S. when House
of Representatives, voting because Electoral College had been unable
The day's birthdays:
to give any candidate a majority, elected John Quincy Adams.
Writer Charles Dickens 1812, Landport, England; writer Sinclair
1870-National Weather Service established as unit of U.S. Army.
Lewis 1885, Sauk Center, Minn.; statesman Sir Thomas More 1478,
1942-French liner Normandie caught fire at pier in New York while
London.
being converted for use as wartime troopship. Capsized following
Quotation of the day:
morning.
"No attachments soothe the mind SO much as those contracted in
1943-Japanese evacuated Guadalcanal, ending epic World War II
early life
"-Thomas Jefferson, February 7, 1788
battle with U.S. forces.
For 2/6/91 speech
Examples of some major U.S. investments in Eastern Europe
Hungary
General Electric (CEO Jack Welch knows the
President) $150 million joint venture with
Tungsraum
GM and Ford: major auto parts investments
($160 million and $80 million respectively)
Guardian Glass: $110 million joint venture
Poland
Marriott: major joint venture (with LOT, the
Polish airline) for a hotel/office complex in
central Warsaw
Czechoslovakia
Bell Atlantic and US West: $80 million
telecommunications venture
GE and Westinghouse: major power generation
ventures
Summary of what we have done to create favorable investment
conditions in Poland, Czechoslovakia and Hungary (Bulgaria and
Romania to follow)
-- MFN and GSP (Generalized System of Preferences)
-- OPIC, ExIm Bank, TDP (Trade and Development Program) operating
-- relaxing COCOM restrictions
-- Polish-, Hungarian- and Czechoslovak-American Enterprise Funds
-- Concluded bilateral investment treaties and commercial
agreements on terms advantageous for U.S. firms (investment
treaty with Czechoslovakia not quite finished)
January 30,1991
Boscin CEA
1.
Gulf $ForiPol. x econ. etf
2.
Bpt. gen. ifo from sou & elaborate
3.
Budget package 2/4
Treas, study 2/5
Why impacts of on shock not will like lessen TOs. recession
Economic Rpt ofthe Res.
Budget pckg expectations.
Remove lg # of constraints on banking industry
McFadden Act A these
Glastenale Act
underlying strengths in economy
Economy will rebound soon
bright future
We have a fundamentally strong economy
Anecdote
NY; variation by region sector on how economy is doing
all parts of country are doig differently.
Reverse of early 80s
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF SCIENCE AND TECHNOLOGY POLICY
WASHINGTON, D.C. 20506
January 31, 1991
CAROL X ED
MEMORANDUM FOR KEN YALE
FROM:
STEVE OLSON
SUBJECT:
TALKING POINTS FOR PRESIDENTIAL SPEECH
Attached are two complementary cuts at talking points for a Presidential speech on
the technology and the economy that include almost all of the important points to
make. The first set of points is drawn from several OSTP speeches on the subject.
The second was prepared by an outside group focused on manufacturing. This set of
talking points included recommendations for federal action that have not been
reviewed or approved by our office, so I have marked those out with a magic marker.
The rest of the material is an excellent summary of the problems and opportunities
facing American industry.
1
SUGGESTED TOPICS AND TEXT
FOR PRESIDENTIAL SPEECH ON
TECHNOLOGY AND THE ECONOMY
0
Today, more than ever before, one of the key determinants of the strength of
our economy is the proficiency of our technology. Other factors are also important,
but the difference between success and failure in the marketplace often comes down to
who has the better technology. If this country is going to remain an economic leader,
we must retain our lead in technology.
0
We have not lost that lead. On the contrary, the United States continues to
have the strongest science and technology base in the world. However, a number of
countries, by focusing their resources in particular areas, have moved up to equal --
and in a few cases surpass -- the position of the United States.
0 That is not necessarily bad. In fact, it was to be expected as other
countries recovered from World War II and began to follow the United States' lead.
What we must now do is ensure that, in all areas of science and technology where our
activities do not define the frontier, they are close enough to those frontiers SO that
we can exploit, without delay, new developments whenever and wherever they occur.
0 Let me mention a few other strengths of American science and technology,
because it will be important to keep these in mind in considering technology
development. First, this country continues to have the strongest research university
system in the world. At the undergraduate level on the average, and most especially
at the graduate level, our universities continue to set world standards and typically
attract the brightest young people from around the world.
0
These research universities also provide a double dividend. They generate
the new knowledge that drives both science and technology, and at the same time they
produce the young minds trained to use that knowledge in new and more productive
ways. In no other country does this process work as effectively.
0 The United States also continues to have a business climate that encourages
the formation of new companies and allows successful companies to grow quickly into
major businesses. The rapid growth of the biotechnology industry is one example --
with over 400 firms founded in biotechnology in the 1980s -- but there are other
examples throughout American business. These small and medium-sized firms
generate many of the most important new ideas in our economy, and they continue to
generate most of the new jobs in this country. So long as adequate investment
capital remains available for new start-ups, these companies will continue to
2
contribute a dynamic quality to the U.S. economy that is not evident elsewhere.
0 Finally, the United States remains an open and restless society that prizes
and rewards innovation. Our world is today changing at accelerating speed -- largely
because of advances in science and technology -- and those companies that remain
flexible and innovative are going to be the ones best able to take advantage of those
changes. Brute force and size are no longer enough for success in American business.
In the future, the spoils are going to go to the quick, to the smart, and to the
tenacious. The massive production lines for which the United States has become
famous can no longer be looked on as the paradigm, though the advantages of scale
will continue to be important. We need greater flexibility and agility in changing our
production capabilities, both to reflect technological changes and to match customer
demand. And we must develop much greater sensitivity to that demand, particularly
in the international marketplace.
0
The strengths that I have just listed are all important factors in
considering the proper role of the federal government in technology development.
They indicate the directions that will be most fruitful, where federal programs can
leverage the underlying strengths of our institutions. They also give an indication of
what has worked best in the past, providing lessons that we can draw upon today,
although not necessarily replicate.
0
Historically, the federal government has supported this work for two
reasons: to meet its own needs in such areas as defense and space, and to meet
broader national needs that can be seen as "public goods," such as better health care,
the clean-up of pollution, or a stronger transportation or communications
infrastructure. However, this R&D has also resulted, over time, in major advances in
the private sector. Particular examples come immediately to mind: the development
of commercial aircraft, the creation and growth of the computer industry, the strength
of American agriculture. But in fact the impact is much more pervasive, because
federal R&D has helped to establish the science and technology base from which
industry has been able to draw in developing commercial products and processes.
o However, a technology base is unlike many other assets: it must be put to
use to be valuable. Several steps taken by Congress and the Reagan Administration
in the 1980s provide the mechanisms needed for us to tap the expertise available in
our federal laboratories and put it at the disposal of our industrial producers. For
example, it is now the responsibility of every federal manager -- defense or civilian --
to consider the commercial ramifications of the work they are supporting and to
encourage its commercial application. We must continue to promote these
mechanisms so that they become business as usual rather than an additional layer of
responsibility imposed on many others. In general, they must receive a much higher
priority that has often been the case in the past.
o We must also think about the missions and organization of the federal
laboratories and make sure that the country is receiving the best possible return on
its investments. For example, potential commercial applications should in many cases
3
be considered not only in the conduct of R&D but in its planning. Furthermore, both
the planning and the conduct of R&D should be guided by input from potential users.
This will require that new alliances be established among federal laboratories,
businesses, and universities so that the transfer of technology is maximized.
0 As you are well aware, this technology transfer is not easy. It is hard to
transfer technology even within a large organization, much less between organizations,
especially when there are large bureaucratic obstacles or cultural differences to
overcome. In these instances, leadership, commitment, and vision at the very top of
the organizations are essential to overcoming these barriers.
0 In fact, there is only one way in which technology can be effectively
transferred, and that is in the minds of people. The "transfer" that must take place
is between two or more individuals in separate organizations. So the first and most
important step in technology transfer is that the potential providers and potential
users of technology must be brought together. We must make it much easier, for
example, for federal scientists and engineers to work in the private sector, and vice
versa, so that individuals with technologies firmly planted in their brains can move
from one institution to another. Far too many needless restrictions and red-tape
inhibit that exchange today, and we must reduce those barriers.
0 We must also foster new partnerships. Consortia and collaborative
arrangements like SEMATECH make it possible to pool resources and specialize on
problems, so that each firm does not have to reinvent the technological wheel. We
must all work together -- businesses, governments, and universities -- to encourage
these collaborations, while keeping in mind that their ultimate objective is to increase
competitiveness, both domestically and internationally.
o
This Administration has made a clear commitment to support the
development of generic, precompetitive technologies that are important in both the
public and the private sectors. In this way, we can help leverage the R&D of the
private sector, helping whole industries advance in an increasingly competitive global
market.
o
However, technology development also has to be guided by the potential
users. The federal government has a relatively poor track record where it has
invested in civilian technology without close involvement at the outset from potential
users. If U.S. industry wants government assistance and is willing to coinvest, there
is some hope for success. But if industry does not perceive the need or is not
interested, there is little point in the government's engaging in technology push.
0
This Administration is prepared to be helpful and indeed looks on
competitiveness as one of the nation's most pressing challenges. But we do not
believe that we in government are as well-qualified to make these strategic plans and
decisions for industry as is industry itself. Nor do we believe that economic
transfusions in the absence of such strategic plans are any answer at all.
4
0
There are many other factors in addition to technology that determine a
company's success, including economic factors, trade factors, legal and regulatory
factors, and even cultural factors. Technology may be a necessary precondition for
success, but it is not a sufficient precondition. The Bush Administration is taking a
wide variety of other steps to address these issues. On the economic front, it has
been working to reduce the cost of capital by controlling the federal budget deficit
and by making the research and experimentation tax credit permanent. On trade, it
is working through the current round of GATT talks to reduce trade barriers and
better protect intellectual property. It is reforming product liability laws to restore
balance to the tort system and is working to eliminate unwarranted regulation. And,
perhaps most important of all, it is focusing substantial effort on the education of our
young people, and particularly on the mathematics and science education that will be
crucial to our nation's future.
0
The actions of the federal government alone cannot dictate economic health.
The private sector must also contribute, and it must contribute in ways that it has
not in the past. In the area of technology, the private sector must identify and
aggressively pursue commercial applications for technologies developed outside its own
laboratories, whether by university laboratories, by federal laboratories, by other
companies, or by other countries. Regarding its capital stock, it must increase
quality, output, and productivity by undertaking the necessary investments in
equipment and facilities. Finally, it must improve the skills and abilities of its own
workforce and participate cooperatively in improving the quality of U.S. education.
0 The federal government can establish incentives for private industry to take
such actions. An excellent example is the Malcolm Baldridge National Quality Award
established by Congress and President Reagan in 1987. This award recognizes the
overall quality of a company's performance, from the commitment of its leaders to the
satisfaction of its customers. It is based on a self-examination procedure that
incorporates seven major criteria for quality. This self-examination procedure has
itself proven to be a major source for quality improvement: many applicants have
undergone productivity gains of 20 to 30 percent in the process of competing for the
award. In fact, one of the first winners of the Award, Motorola, was so impressed by
the process that it has required its thousands of suppliers to also compete for the
award.
o The Bush Administration is committed to increasing this nation's
investments in the future -- through R&D, through increasing rates of investment,
through education. I call upon you to join us in this commitment, because it means
a better future for all of us.
1
SUGGESTED POINTS FOR PRESIDENTIAL ADDRESS ON ECONOMIC
COMPETITIVENESS
Introductory Points
Growing concern in the nation about the strength of our economy--and
America's ability to retain its leadership role in the world marketplace.
This address: An opportunity to place this critical question in a new
perspective. Need to understand and address our strengths and weaknesses in the global
economy.
Importance of this issue for all of us: We are all consumers, whether we are
teachers, retired persons, clerics, students, workers, managers, doctors, lawyers, or
from any other profession.
To have the choices, quality and prices needed to maintain, let alone improve,
our standard of living, must all support efforts to improve nation's competitiveness,
whether in manufacturing or service industries.
Not just a "help-business" or "help-labor" imperative:
We each lose our hard-fought standard of living if our companies do not get more
competitive, whether we live in Michigan, where most everyone is employed in or
dependent upon industry, or in Wyoming, where few are.
Thus, a non-partisan, nationwide issue.
Also an issue directly affecting our national security: Just as our nation must
have strong economic growth and productivity to improve our standard of living, we need
a robust industrial base as the backbone of our military capabilities wherever they are
needed to defend our national interests--in the Persian Gulf or elsewhere.
2
Requirement for a vigorous effort at all levels of our society--in our
factories, our schools, our communities, and in our local and state government-- to
ensure America's economic leadership and competitiveness in the global economy.
Defining the Issue
United States economy still one of the wonders of the world: Our Gross National
Product approaching an incredible five and a half trillion dollars, more than twice that
of Japan, the next leading industrial nation.
America's workforce remains one of most productive in the world: per-capita
wages and standard of living still matched by few other countries. At same time, our
leadership position challenged more than ever by vigorous overseas competitors: Japan
and Germany in front rank of those challengers. As the European Communities move
towards a true common market in 1992, U.S. will be challenged as well by Western
Europe as a massive trading bloc.
Erosion of U.S. lead in most crucial measure of economic performance--
productivity. Last year, our output per hour increased by only two percent, while
Japan's increase was by over 6%. Last year, Japan invested more than 5% of its gross
domestic product in new manufacturing plants and equipment compared with 3.5% for
the United States.
Loss of U.S.leadership position or market share in several key industry
sectors, e.g.: automobiles, consumer electronics, machine tools. semiconductors.
shipbuilding, electrical machinery, precision instruments, chemicals, and metal
products.
3
A skilled workforce: a major ingredient of a nation's economic competitiveness.
Yet poor United States scores in international vocational skills rankings, as our
education system--and our society--undervalues work in manufacturing.
Need for U.S. industry as a whole to move faster in the adoption of the new
technologies, quality control, and management strategies which are revolutionizing the
way products are made. These technologies and processes required to assure high
quality, reduce the time needed to introduce new products, reduce inventory, and cut
costs. Yet efforts to modernize, especially among smaller companies, hamstrung by a
lack of technical resources, inadequate availability of capital, and counterproductive
regulations.
Effects of these shortcomings becoming more pronounced: U.S. has moved
from being the world's leading creditor nation to the world's leading debtor nation. We
confront a stubborn trade deficit of over $100 billion, most of it in manufactured goods.
Root Causes--and Suggested Remedies
Current situation: not a collapse of U.S. economic leadership, but a gradual
erosion of our relative position in the global marketplace.
No single cause. Several factors at play here. Need for clarity about what
those are. Need to establish policies and programs which deal effectively with them.
Cost and Availability of Capital, America's dangerously low rate of
investment in new plant and equipment due in large part to the high cost of investment
capital and the shortage of longer-term capital, as interest rates remain high, investors
demand quick return on investment. and our nation's tax policies remain inhospitable to
economic growth.
To lower interest rates, must redouble our efforts to reduce the federal budget
deficit. The budget agreement reached last fall: a respectable beginning, and some
4
improvements were made in the budgeting process itself. Must not slide back from that
promising start. Must exercise even greater vigilance in the budget process this year.
Continued, firm commitment to reducing the capital gains tax and establishing
the research and experimentation tax credit on permanent basis.
Education and Training. America's global economic competitiveness and
its education system closely interrelated. Much attention has been devoted to the
deficiencies in our education system. No wavering in Presidential commitment to give
highest priority to improving our nation's schools.
One of the most glaring and ignored deficiencies in our education system:
technical and vocational training required for a skilled workforce. Lagging far behind
our global competitors in this area. In Germany, for example, over 60% of high school
graduates enter apprentice training programs while still in school so that they will
move quickly and smoothly into productive jobs in high-skill fields. We send many of
our kids off to the mall to flip hamburgers or sell movie tickets.
5
Recognition by President and nation's governors of this critical problem at
Charlottesville a year ago in fall 1989, when they committed themselves to raise
America's workforce skills to internationally competitive levels.
Another, larger question, an attitudinal question: work in the centers of our
nation's industrial productivity remains undesirable or unfashionable in the minds of
many educators, counselors, parents, and students planning their future careers. This
attitude to be found in the business schools and the engineering schools, not just the high
schools.
6
Yet , industrial managers. engineers. technicians, and workers are the very
backbone of our economy: Their work challenging, rewarding, and highly responsible.
Today's modern factories bear little resemblance to the sweat shops of old.
Need to change this mind-set, if nation is to have a strong, globally-
competitive economy. Need for educators, counselors, and parents to encourage
children to enter high-skill, technical jobs and to begin career planning at the junior
high school level. Hope that schools and state and local government will emulate awards
to recognize technical skills.
Technology. Inability to transfer manufacturing technologies more rapidly
into the nation's industrial base: a further cause of America's growing difficulties in
competing in the global economy. Many of the some 370,000 manufacturing
establishments in our nation still using decrepit equipment and outmoded methods for
managing work and training.
Fortunately, corrective action at state level underway: a number of states
during the 1980's began to institute industrial modernization services to transfer
newer manufacturing strategies more quickly into the hands of small and medium-sized
manufacturers. Role of the federal government: not to displace these programs but to
support and reinforce the best ones.
7
Need for measures of this kind to ensure that existing, readily available, off-
the-shelf technology be diffused more rapidly throughout our nation's industries.
At the same time, need to stay at the cutting edge of new technologies in
manufacturing.
The great sophistication of advanced technologies being used today to
revolutionize the means of production: lasers, programmable controllers, sensors,
robots, artificial intelligence, advanced process manufacturing and control technologies,
and so forth. Our overseas competitors understand this point well. This is the reason
why over a year ago Japan proposed a $1 billion international research consortium on
intelligent manufacturing systems.
U.S. considering this Japanese proposal, but most important thing about it is
that it underlines the fact that the U.S. itself must work hard to stay on the frontiers of
knowledge in this critical field.
Personal Leadership and Commitment
The preceding not an exhaustive list of measures be needed to secure America's
leadership in the world economy. Limited role of federal government in this area; most
of the work has to be done at the state and local level and within industry itself.
Issue of overarching concern for all Americans, however.
Presidential readiness to use personal leadership wherever appropriate: a
"Competitiveness" President.
8
annual eview of the nation's progress
Conclusion
Need for broad national effort to ensure that America has the means and the
human talent needed to produce the high-quality goods and services which are the
principal sources of our nation's wealth.
An issue of vital importance to all Americans. Not a partisan issue.
Higher rates of productivity and greater investment in industrial
modernization needed to improve the standard of living for every citizen. Revenues
generated by economic growth underpin ability to improve government services at the
federal, state, and local level. A robust industrial base at home a prerequisite for
national security.
In addition to what governments, schools, and companies do in this area:
commitment of each citizen to achieve highest quality of performance in whatever his or
her profession or occupation.
Basic goal for 1990's: With commitment and effort at all levels of American
society, United States should arrive at the Year 2000 with most modern, capable, and
competitive industrial base in the world.
Event: Address Economic Club of New York
New York, New York
name
office
Phone #
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WH Advance
202/456-7565
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Lou Hammond Associates
212-308-8380
WH off i of Pap LIANSON 212-689-6151 202-456-7845
JANE CARROLL
ECONOMIC CLUB
212-689-6148
RAYMOND K. PRICE, JR, ECONOMIC CLUB
212-689-614.8
DAN Camminas
LennyCherson WH Advance ASTABIA ZrZ-872-4785 212-264-2600
THE WHITE HOUSE
WASHINGTON
January 25, 1991
MEMORANDUM FOR PRE-ADVANCE PARTICIPANTS
FROM:
JOHN G. KELLER, JR. JEK
SUBJECT:
PRE-ADVANCE TO NEW YORK, NEW YORK
Attached for your information is a list of participants and an
outline schedule for the Pre-Advance to New York, New York on
January 25, 1991.
PRE-ADVANCE PARTICIPANTS
Office of Presidential Advance
Judd Swift, Deputy Director of Presidential Advance
Spencer Geissinger, Deputy Director of Presidential Advance for
Press
Craig Ray, Lead Advance Representative
Brian Montgomery, Press Advance Representative
Lucy Muckerman, Trip Coordinator
United States Secret Service
Charlie DeVita, ASAIC, Presidential Protective Division
White House Military Office
Maj. Sean Byrne, Army Aide to the President
Capt. Jay Farmer, HMX Advance
White House Communications Agency
Maj. Bob Risney, Operations Coordinator
Capt. Mark Barnette, Assistant Operations Coordinator
Maj. Larry Feast, Trip Officer
Col. Kevin McHale, Assistant Trip Officer
Office of Public Liaison
Jeff Vogt, Assistant Director of Public Liaison
Office of Communications
Carol Blymire, Researcher
PRE-ADVANCE SCHEDULE
Friday, January 25, 1991
7:30 am
Vans depart West Basement for those requiring
transportation to Union Station.
(Drive Time: 10 Minutes)
7:40 am
Vans arrive Union Station.
8:00 am
Train #104 departs Union Station en route Penn
(E.S.T.)
Station, New York, New York.
(Travel Time: 2 Hours 50 Minutes)
(Time Change: None)
10:50 am
Train #104 arrives Penn Station.
(E.S.T.)
CONTACT:
Mr. Raymond Price, Jr.
President, Economic Club
of New York
275 Madison Avenue
New York, New York 10016
212/689-6148
11:00 am
Board Vans and depart Penn Station en route Hilton
Hotel.
(Drive Time: 20 Minutes)
11:20 am
Arrive Hilton Hotel and begin Working Luncheon and
Site Survey.
CONTACT: Ms. Beverly Carlson
Hilton Hotel
212/586-7000
Page Two
*
HEAD TABLE RECEPTION
- Closed Press
(6:30 pm - 6:55 pm)
*
ADDRESS ECONOMIC CLUB OF NEW YORK
- Open Press
- Brief Remarks
- Teleprompter TBD
- Question and Answer Session
- Black Tie
(7:00 pm - 9:45 pm)
2:25 pm
Conclude Site Survey and proceed to Vans.
2:30 pm
Board Vans and depart Hilton Hotel en route Penn
Station.
(Drive Time: 20 Minutes)
2:50 pm
Arrive Penn Station and proceed to board Train.
3:00 pm
Train #119 departs Penn Station en route Union
(E.S.T.)
Station.
(Travel Time: 2 Hours 55 Minutes)
(Time Change: None)
5:55 pm
Train # 119 arrives Union Station.
(E.S.T.)
6:00 pm
Board Vans and depart Union Station en route White
House.
(Drive Time: 10 Minutes)
6:10 pm
Arrive White House.
Page Three
THE WHITE HOUSE
WASHINGTON
January 28, 1991
MEMORANDUM FOR CHRISS WINSTON
CHRISTINA MARTIN
ED MCNALLY
FROM:
CAROL BLYMIRE
CB
SUBJECT:
ECONOMIC CLUB OF NEW YORK
On Friday, I went on the pre-advance for the address to the
Economic Club of New York. The event will be held on Wednesday,
February 6, at the New York Hilton. This is a black tie dinner,
with approximately 2,400 attendees. The dinner begins at 7:00
p.m. and the President is scheduled to speak at 8:30 p.m. The
Chairman of the Club will introduce the President, and his speech
will be followed by a 45-minute question and answer session with
two people previously selected by the Club. The questions are
not prepared by us, and WH Staff will most likely not see them
before the program. Call Spencer Geissinger or Judd Swift if
this is problematic.
I recommend teleprompter, since this is the first out-of-
town speech since January 16, and since it will be one week
following the State of the Union. They are expecting 8-10
minutes from the President.