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Originally Processed With FOIA(s): FOIA Number: S Systematic FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Appointments and Scheduling, White House Office of Series: Presidential Daily Diary/Backup Subseries: OA/ID Number: 12790 Folder ID Number: 12790-008 Folder Title: [Presidential Daily Backup] 2/6/89 Stack: Row: Section: Shelf: Position: G 14 31 3 2 Withdrawal/Redaction Sheet (George Bush Library) Doc. No. / Type Subject/Title Date Restriction Classification 01. Daily Schedule Name of briefer redacted (1 pp.) 02/06/89 (b)(3) 02. Memo David Q. Bates to POTUS, Re: swearing-in of Secretary Skinner 02/06/89 P/S open 6/7/2005 (2 pp.) 03. Trip Schedule Name of Secret Service agent redacted (1 pp.) 02/06/89 (b)(7)(c), (b)(7)(e), (b)(7)(f) 04. Schedule Motorcade Assignments 02/06/89 (b)(7)(c), [Redacted] (1 pp.) (b)(7)(e), (b)(7)(f) 05. Diagrams Security diagrams - swearing-in of Secretary Skinner (2 pp.) 02/06/89 (b)(7)(e), (b)(7)(f) Page 1 of 1 Collection: Record Group: Bush Presidential Records Office: Appointments and Scheduling, Office of Series: Presidential Daily Diary/Backup Subseries: WHORM Cat.: File Location: [Presidential Daily Backup] 02/06/89 Pinksheet Number: RML108 OA/ID Number: 12790-008 Date Closed: 5/23/2002 FOIA/Sys Case #: 2002-1005-S Re-review Case #: P-2/P-5 Review Case #: SCHEDULE OF THE PRESIDENT Monday, February 6, 1989 8:00 am Intelligence Briefing Oval Office (15 min) (Scowcroft/Sununu) 8:15 am National Security Briefing Oval Office (30 min) (Scowcroft/Sununu) owe 8:45 am Meeting with Governor Sununu Oval Office (30 min) 9:00. 1 Hour nita w J.C.S. C.S. oval office 10:00 Personal Staff Time Oval Office (2 hrs 45 min) 12:00 noon Lunch and Personal Staff Time Oval Office (1 hr 45 min) 1:45 pm Attend Swearing-in of Carla Hills Indian Treaty (20 min) as U. S. Trade Representative Room (Bates) (TAB A) 2:25 pm The President and Mrs. Bush depart South Lawn for Swearing-in of Samuel Skinner as Secretary of Transportation at the FAA Building (Bates) (TAB B) 3:05 pm The President arrives White House South Lawn 3:05 pm Personal Staff Time Oval Office (1 hr 40 min) RM 450 4:00 NEWS CONFERENCE 4:45 pm Meeting with Governor Sununu Oval Office (15 min) UNP 02/03/89 4:00 pm Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 01. Daily Name of briefer redacted (1 pp.) 02/06/89 (b)(3) Schedule Collection: Record Group: Bush Presidential Records Office: Appointments and Scheduling, Office of Series: Presidential Daily Diary/Backup Subseries: WHORM Cat.: File Location: [Presidential Daily Backup] 02/06/89 Date Closed: 5/23/2002 OA/ID Number: 12790-008 FOIA/SYS Case #: 2002-1005-S Appeal Case #: Re-review Case #: Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. 7:05 - an ovar offer 7:33 - Dr. made in 7:35 Dr. (b)(3) moke out 8:00 - Scoweroft DCI Date in 8:06 Sunuau in (b)(3) 8:14 DCI depart 8:15 U.P. in 8:50 sates, Acowcroft ori 9:02 add Scoweroft 9:03 add Brady 9:05 Joint Chief of stoff meeting begins (see attached participants list) 10:16 all depart except Tower, Baher, VP, Scoweroft, Gates, Brady Darman Sunun 10:20 Baher, Scourroft Dates depart 10:24 Seoweroft 10:52 Scoweroft in 10:39 Scowroft on 10:59 Scoweroft out 10:41 Daman, UP, Brady out 10:45 Dav. S. out 11:23 Potus to Cabana 11:29 Potus to Oval 12:02 Fitywath in to Oval 12:05 Sunum in 12:0 12:10 ont 12:09 Breeden + Darman int 0 0 val Potus, Breeden, Darman Summit to Studyfor Lunch 1:11 Breeden, Daman depart 1:20 a. Card into Oral 1:23 Card & Sununa out 1:39 Potus dpt oval 1:42 an Indian Treatly Carf. Rm. 1:45 an India Treat Run 1:57 an 5th 7ls OEOB Reuption 2:11 dpt 5th 7li OEOB 2:12 Dpt OEOB 2:14 an Oval 2:23 Dpt Oval (See Tab B Schedule) 3:41 Aunune in to oval 3:49 Bruden in 3:56 Potus depart w/ Summer + Breede 4:00 an 450 0EOB Holding Run 4:09 announced into 450 0EOB 4:35 Dpt 450 OEDB w/ Gov. Summer 4:40 an ooal off. alone. 5:00 Dov. Sununu into Oval 5:24 Nov. Sunury out. 5:39 Dpt Oval - Dpt Pressoff 5:42 an lower Prins off 5:43 dpt lower Press office THE WHITE HOUSE WASHINGTON SWEARING IN OF SAMUEL K. SKINNER AS SECRETARY OF TRANSPORTATION DATE: Monday, February 6, 1989 TIME: 2:30 p.m. LOCATION: Federal Aviation Administration Auditorium FROM: David Q. Bates I. PURPOSE To witness the swearing in of Samuel K. Skinner as your Secretary of Transportation. II. BACKGROUND On December 22, 1988 you nominated Samuel Skinner to be your Secretary of Transportation. He was confirmed unanimously by the Senate on February 2 and officially sworn in by a notary public following the vote. Secretary Skinner has served since 1984 as Chairman of the Regional Transportation Authority of Northeastern Illinois, the United States' second largest public mass transportation system. Secretary Skinner serves also as senior partner in the Chicago office of the international law firm of Sidley and Austin. Secretary Skinner has requested that this event be held at the Federal Aviation Administration Building because of the recent controversy surrounding the Federal Aviation Administration's relationship with the Department of Transportation. The ceremony will be broadcast throughout the building and via satellite to other Department of Transportation locations in the country. III. PARTICIPANTS Mrs. Bush, Samuel Skinner, Governor James R. Thompson, master of ceremonies, Judge Joel M. Flaum who will be performing the ceremony, Captain P. Alan Plishker, Secretary Skinner's children, Thomas, Steven and Jane Skinner and his mother Imelda Skinner Malloy. Nine employees who represent each administration of the Department of Transportation will also be on stage. IV. PRESS PLAN Open Press V. SEQUENCE OF EVENTS See Advance Office Scenario VI. REMARKS To be provided by speechwriters Tim THE WHITE HOUSE WASHINGTON VISIT OF THE PRESIDENT AND MRS. BUSH TO FEDERAL AVIATION ADMINISTRATION BUILDING MONDAY, FEBRUARY 6, 1989 EVENT: SWEARING IN CEREMONY OF SECRETARY OF TRANSPORTATION DATE: Monday, February 6, 1989 TIME: 2:30 pm 3:00 pm LOCATION: Federal Aviation Administration Building PRESS: Open Press SCENARIO: THE PRESIDENT and Mrs. Bush arrive the Federal Aviation Administration Building and are greeted by Secretary Designate Samuel Skinner and his three children, Thomas, Jane and Steven. Following greetings, THE PRESIDENT and Mrs. Bush, accompanied by Secretary Designate Skinner and his children, will proceed to the off-stage announcement area. Upon announcement, THE PRESIDENT and Mrs. Bush, Secretary Designate Skinner and his children will proceed on Stage. Governor Jim Thompson will introduce Captain Allan Plishker, US Coast Guard Chaplain for the Invocation. Following the Invocation will be the Pledge of Allegiance led by Governor Jim Thompson, and the "National Anthem." THE PRESIDENT will be introduced by Governor Thompson for brief remarks. Upon conclusion of brief remarks, THE PRESIDENT and Mrs. Bush will witness the Oath administered by The Honorable Joel M. Flaum, US District Court of Appeals, Seventh District. Secretary Skinner will give remarks. Upon conclusion of Secretary Skinner's remarks, THE PRESIDENT and Mrs. Bush will depart Stage and proceed to Motorcade. Mrs. Bush will depart separately and assume her own schedule. THE PRESIDENT will proceed to the Motorcade and depart the Federal Aviation Administration Building en route the White House. Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 03. Trip Schedule Name of Secret Service agent redacted (1 pp.) 02/06/89 (b)(7)(c), (b)(7)(e), (b)(7)(f) Collection: Record Group: Bush Presidential Records Office: Appointments and Scheduling, Office of Series: Presidential Daily Diary/Backup Subseries: WHORM Cat.: File Location: [Presidential Daily Backup] 02/06/89 Date Closed: 5/23/2002 OA/ID Number: 12790-008 FOIA/SYS Case #: 2002-1005-S Appeal Case #: Re-review Case #: Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. THE WHITE HOUSE WASHINGTON SCHEDULE OF THE PRESIDENT AND MRS. BUSH FOR WASHINGTON, D.C. MONDAY, FEBRUARY 6, 1989 EVENT: Swearing In Ceremony of The Secretary of Transportation DRESS: Men - Business Suit Women - Day Dress CONTACT: Presidential Advance Office John G. Keller, Jr. - 202/456-7565 Trip Coordinator Patricia L. Conrad - 202/456-7565 ADVANCE: Gordon James -LRAD (b)(7)(c), (b)(7)(e), (b)(7)(f) Cmdr. Lee -MIL. AIDE Buster Miller -WHCA WEATHER: Partly Cloudy/Mid 40's Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 04. Schedule Motorcade Assignments 02/06/89 (b)(7)(c), (b)(7)(e), [Redacted] (1 pp.) (b)(7)(f) Collection: Record Group: Bush Presidential Records Office: Appointments and Scheduling, Office of Series: Presidential Daily Diary/Backup Subseries: WHORM Cat.: File Location: [Presidential Daily Backup] 02/06/89 Date Closed: 5/23/2002 OA/ID Number: 12790-008 FOIA/SYS Case #: 2002-1005-S Appeal Case #: Re-review Case #: Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. THE WHITE HOUSE WASHINGTON SCHEDULE OF THE PRESIDENT AND MRS. BUSH FOR WASHINGTON, D.C. MONDAY, FEBRUARY 6, 1989 w/Dow. Summ. 2:25 pm THE PRESIDENT and Mrs. Bush depart White House en route Federal Aviation Administration Building. The OR MOTORCADE ASSIGNMENTS: (b)(7)(c), (b)(7)(e), (b)(7)(f) (Drive Time: 5 Minutes) 2:30 pm THE PRESIDENT and Mrs. Bush arrive Federal 9 Aviation Administration Building and proceed to OK Holding Room. Met by: Mr. Samuel Skinner Secretary Designate Mr. Thomas Skinner (Mr. Samuel Skinner's Son) Miss Jane Skinner (Mr. Samuel Skinner's Daughter) Mr. Steven Skinner (Mr. Samuel Skinner's Son) GUEST AND STAFF INSTRUCTIONS: Upon arrival at Federal Aviation Administration Building, Guests and Staff will be escorted to Staff Holding Room or Viewing Area. PRESS INSTRUCTIONS: Upon arrival at Federal Aviation Administration Building, Press Pool will be escorted to Buffer Zone. of 2:34 2:32 pm THE PRESIDENT and Mrs. Bush, escorted by Secretary Designate Skinner and his three children, proceed to Off-Stage Announcement Area. 2:36 2:34 pm THE PRESIDENT and Mrs. Bush, Secretary Designate Skinner and his three children, arrive Off-Stage Announcement Area and hold briefly. Page Two EVENT: SWEARING IN CEREMONY OF SECRETARY OF TRANSPORTATION OPEN PRESS RUFFLES AND FLOURISHES OFF-STAGE ANNOUNCEMENT HAIL TO THE CHIEF BRIEF REMARKS SWEARING IN CEREMONY 2:36 2:35 pm THE PRESIDENT and Mrs. Bush, accompanied by Secretary Designate Skinner and his three children, are announced on Stage by an Off-Stage Announcement and remain standing. 2:37 2:36 pm Governor Jim Thompson introduces Captain Allan Plishker, U.S. Coast Guard Chaplain, for Invocation. 2:38 pm Governor Jim Thompson leads the Pledge of Allegiance. 2:39 pm "National Anthem" OK 2:41 pm THE PRESIDENT is introduced by Governor Jim Thompson for Brief Remarks. 2:4 pm THE PRESIDENT gives Brief Remarks. 2:46 2:48 pm THE PRESIDENT concludes Brief Remarks and with Mrs. Bush proceeds to witness Oath administered by The Honorable Joel Flaum, U.S. Court of Appeals, Seventh District. ok 2:49 pm Secretary Skinner remarks. 2:54 pm Secretary Skinner concludes remarks. ok Page Three ok 2:55 pm THE PRESIDENT and Mrs. Bush depart Stage and proceed to Holding Room. 2:55 2:57 pm OH THE PRESIDENT and Mrs. Bush arrive Holding Room. 2:57 boo. Simmer 2 2:59 pm THE PRESIDENT departs Holding Room and proceeds to Motorcade. NOTE: Mrs. Bush will depart separately and assume her own schedule. 2:58 3:00 pm THE PRESIDENT boards Motorcade and departs Federal Aviation Building en route White House. MOTORCADE ASSIGNMENTS: Same As On Arrival. (Drive Time: 5 Minutes) 3:05 pm THE PRESIDENT arrives White House. S. groud 3:05 are Oval off Page Four Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 05. Diagrams Security diagrams - swearing-in of Secretary Skinner (2 pp.) 02/06/89 (b)(7)(e), (b)(7)(f) Collection: Record Group: Bush Presidential Records Office: Appointments and Scheduling, Office of Series: Presidential Daily Diary/Backup Subseries: WHORM Cat.: File Location: [Presidential Daily Backup] 02/06/89 Date Closed: 5/23/2002 OA/ID Number: 12790-008 FOIA/SYS Case #: 2002-1005-S Appeal Case #: Re-review Case #: Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. TAB C FEDERAL AVIATION ADMINISTRATION 'Department of Transportation Secretary Skinner's Swearing In Ceremony' Phase 1 - Arrival Stage Diagram Monday, February 6, 1989 Audience Stand up Mic 9. 8. Podium 1. 13. 7. 6. 5. 4. 3. 2. 10. 14. 11. 15. 12. 16. 17. I. Captain Allan Plushke 11. Ms. Romell W, Cooks U.S. Coast Guard Chaplain Nat. Highway Traffic 2. The Honorable James Thompson Safety Administration Governor of Illinois 12. Ms. Babara Schroeder 3. THE PRESIDENT St. Lawrence Seaway 4. The Honorable Sam Skinner Development Corp. Secretary of Transportation 13. Ms. Suzanne Hedgepath 5. Thomas Skinner Office of Hazardous 6. Jane Skinner Materials Transportation 7. Steven Skinner 14. Mr. Anthony A, Schiavone 8. Joel M. Flaum Maritime Administration U.S. Court of Appeals 15. Mr. Donald R, Simons 7th District Federal Aviation Admin. 9. Ms. Myriel E. Clarke 16. Petty Officer Kelly UMTA M. Mogk, U.S. Coast Guard 10. Mr. Frank J. Mammano 17. Ms. Sandra Fae Tolbert Federal Highway administration Federal Railroad Administration TAB D FEDERAL AVIATION ADMINISTRATION 'Department of Transportation Secretary Siknner's Swearing In Ceremony' Phase 11-Swearing In Ceremony Stage Diagram Monday, February 6, 1989 Audience Stand up Mic 8. 4. 9. Podium 1. 13. 2. 6. 3. 10. 5. 7. 14. 11. 15. 12. 16. 17. I. Captain Allan Plushke 11. Ms. Romell W, Cooks U.S. Coast Guard Chaplain Nat. Highway Traffic 2. The Honorable James Thompson Safety Administration Governor of Illinois 12. Ms. Babara Schroeder 3. THE PRESIDENT St. Lawrence Seaway 4. The Honorable Sam Skinner Development Corp. Secretary of Transportation 13. Ms. Suzanne Hedgepath 5. Thomas Skinner Office of Hazardous 6. Jane Skinner Materials Transportation 7. Steven Skinner 14. Mr. Anthony A, Schiavone 8. Joel M. Flaum Maritime Administration U.S. Court of Appeals 15. Mr. Donald R, Simons 7th District Federal Aviation Admin. 9. Ms. Myriel E. Clarke 16. Petty Officer Kelly UMTA M. Mogk, U.S. Coast Guard 10. Mr. Frank J. Mammano 17. Ms. Sandra Fae Tolbert Federal Highway administration Federal Railroad Administration SWEARING IN OF SAMUEL K. SKINNER MONDAY, FEBRUARY 6, 1989 I AM HERE TODAY TO WELCOME INTO THE CABINET A MAN WHO I BELIEVE IS DESTINED TO GO DOWN IN HISTORY AS ONE OF THE TRULY OUTSTANDING SECRETARIES OF TRANSPORTATION -- SAM SKINNER. SAM HAS ALREADY MADE A NAME FOR HIMSELF AS A MIRACLE WORKER IN TRANSPORTATION. SEVERAL YEARS AGO, MY GOOD FRIEND GOVERNOR JIM THOMPSON OF ILLINOIS PUT HIM IN CHARGE OF THE REGIONAL TRANSPORTATION AUTHORITY OF NORTHEAST ILLINOIS. 2 AT THE TIME THE R.T.A., AS IT IS KNOWN, WAS PLAGUED WITH FINANCIAL TROUBLES AND DECLINING LEVELS OF SERVICE. SOME SAID THAT SAM'S JOB WAS IMPOSSIBLE. BUT SAM ROLLED UP HIS SLEEVES AND SET TO WORK. AND IN SHORT ORDER HE PUT THE R.T.A. ON A SOUND FINANCIAL FOOTING FOR THE FIRST TIME IN YEARS. BUT SAM'S EXPERTISE IN TRANSPORTATION DOES NOT STOP THERE. HE'S AN INSTRUMENT RATED PILOT WHO HAS FLOWN IN AND OUT OF CHICAGO'S O'HARE AIRPORT, ONE OF THE BUSIEST IN THE NATION, MORE TIMES THAN HE CAN COUNT. 3 WHEN IT COMES TO AIR TRAVEL, HE WILL BRING A PILOT'S PERSPECTIVE TO THE HIGHEST LEVELS OF OUR GOVERNMENT, AND THAT MEANS A PERSPECTIVE THAT PUTS SAFETY FIRST, ABOVE ALL OTHER CONSIDERATIONS. You'D THINK ALL THIS WOULD BE ENOUGH, BUT I HAVEN'T FINISHED SAM'S QUALIFICATIONS FOR THIS JOB. BESIDES OVERSEEING THE FEDERAL GOVERNMENT'S ROLE IN MAINTAINING AND IMPROVING OUR NATION'S TRANSPORTATION NETWORKS, THE SECRETARY OF TRANSPORTATION HAS, AS ALL OF YOU KNOW, ONE OTHER CRITICAL DUTY. 4 HE COMMANDS THE COAST GUARD -- AND THE COAST GUARD SERVES ON THE FRONT LINES OF OUR WAR ON DRUGS. I CAN'T THINK OF ANYONE IN AMERICA WHO HAS SAM SKINNER'S BACKGROUND IN TRANSPORTATION AND HAS BEEN A DISTINGUISHED U.S. ATTORNEY, PROSECUTING A NUMBER OF MAJOR CASES. YES, SAM SKINNER IS THE IDEAL MAN FOR A JOB THAT WILL, IN THE YEARS AHEAD, PRESENT EXTRAORDINARY CHALLENGES. I'M SURE THAT I DON'T NEED TO REMIND ANYONE IN THIS AUDIENCE OF THE HIGH PRIORITY MY ADMINISTRATION PLACES ON THE WAR ON DRUGS. 5 I PLEDGED IN MY INAUGURAL ADDRESS THAT THIS SCOURGE WILL STOP -- AND I AM DETERMINED THAT IT WILL. SAM WILL BE WORKING CLOSELY WITH BILL BENNETT AND I KNOW THAT THEY ARE GOING TO MAKE A GREAT TEAM. LET ME MENTION ANOTHER AREA IN WHICH SAM WILL FACE CHALLENGES -- AVIATION. THE U.S. IS THE SAFEST PLACE IN THE WORLD TO FLY, AND IT'S GETTING SAFER. THAT SAFETY RECORD IS YOUR RECORD. THIS DEPARTMENT CARRIES A GREAT DEAL OF THE RESPONSIBILITY FOR THE SAFETY OF THE SKIES -- AND CARRIES IT WITH ABILITY AND PRIDE. 6 AND I KNOW THAT YOU JOIN WITH ME IN SAYING THAT WE WON'T REST UNTIL AIR TRAVEL IN AMERICA IS AS SAFE AS IT CAN BE. BY THE WAY, IN ONE AREA CRITICAL TO SAFE SKIES, SAM IS HITTING THE GROUND RUNNING -- FORGIVE THE PUN. NEXT WEEK HE WILL HEAD A DELEGATION TO MONTREAL TO ATTEND A SPECIAL SESSION OF THE COUNCIL OF THE INTERNATIONAL CIVIL AVIATION ORGANIZATION. SAM HAS MY MANDATE TO DO ALL HE CAN AT THAT MEETING TO HASTEN THE DAY WHEN THE INTERNATIONAL COMMUNITY PUTS AN END TO TERRORISM IN THE SKIES. 7 AVIATION IS NOT, OF COURSE, THE ONLY AREA IN WHICH SAM AND YOU WILL WORK TOGETHER FOR A BETTER AMERICA. I LOOK FORWARD TO HIS LEADERSHIP IN THE AREAS OF HIGHWAYS, BRIDGES, URBAN MASS TRANSIT, INTERCITY RAIL, AND MARITIME TRANSPORTATION. I THINK ONCE YOU GET TO KNOW HIM YOU'LL SEE WHY I SAY THAT I CAN'T THINK OF ANYONE I'D RATHER HAVE IN CHARGE THAN SAM SKINNER. HAVING SAID so MUCH TO YOU ABOUT SAM, LET ME NOW SAY A FEW WORDS TO SAM ABOUT YOU. 8 SAM; IT WOULD BE HARD TO FIND A MORE DEDICATED GROUP OF PEOPLE IN THE ENTIRE GOVERNMENT THAN THE MEN AND WOMEN OF THE DEPARTMENT OF TRANSPORTATION. THANKS IN PART TO THEIR EFFORTS, AMERICA'S TRANSPORTATION SYSTEM IS THE BEST IN THE WORLD. THEY REPRESENT A LONG AND PROUD TRADITION, REACHING BACK TO THE VERY FOUNDING OF OUR REPUBLIC -- FOR ROADS, SHIPPING, AND PROTECTING OUR COASTS FROM SMUGGLERS HAVE BEEN CONCERNS OF OUR GOVERNMENT FROM THE START. SOMEBODY SAID OF YOU, SAM, THAT YOU'RE A VISIONARY WHO THINKS BIG. 9 I EXPECT THAT YOU'LL FIND THAT YOUR NEW COLLEAGUES ARE ALSO VISIONARIES WHO THINK BIG. AND I KNOW YOU ARE AS PROUD TO SERVE WITH THEM AS I AM. So, SAM, AS THEY SAY IN THE RAILROAD BUSINESS, WELCOME ABOARD. IT'S GREAT TO HAVE YOU ON THE TEAM. [Now WE WILL WITNESS THE SWEARING-IN.] - 2 - Meeting with the President February 6, 1989 Oval Office 9:00 - 10:00 a.m. President Bush Vice President Quayle Secretary Baker Will Taft John Tower (I'm not sure if he attended) Brent Scowcroft Robert Gates Joint Chief of Staff Admiral Crowe General Herres General Vuono General Gray General Welch Admiral Trost Diplomatic Credential Ceremony February 7, 1989 Residence 3:30 - 4:30 p.m. Ambassador Jaime Moncayo Ecuador Family: Daughter - Amelia (15) White House: Brent Scowcroft NSC: Clarke Brintnall State: Michael M. Skoll Ambassador Pierre Francois Benoit (Ben-WA) Republic of Haiti Family: Wife - Jacqueline Edeline Benoit Daughter - Francoise (21) Son - Randolph (25) White House: Brent Scowcroft NSC: Robert Pastorino State: Richard H. Melton Ambassador Kjeld Vibe (VEE beh) Norway Family: Wife Beate Vibe White House: Brent Scowcroft NSC: Robert Blackwill State: William Bodde, Jr. THE WHITE HOUSE WASHINGTON SWEARING IN OF CARLA A. HILLS AS UNITED STATES TRADE REPRESENTATIVE DATE: TIME: Monday, February wals 6, 1989 1:45 p.m. LOCATION: Indian Treaty Room FROM: David Q. Bates I. PURPOSE To witness the swearing in of Carla Hills as your U.S. Trade Representative. II. BACKGROUND On December 6, 1988 you nominated Carla Hills to be your Trade Representative. She was confirmed unanimously by the Senate on January 31, 1989 and was sworn in by a notary public following the vote. Ambassador Hills served as secretary of Housing and Urban Development in the Ford Administration, the third woman to hold a cabinet position in America's history. Prior to that she was assistant attorney general of the Civil Rights Division in the Department of Justice. III. PARTICIPANTS Carla Hills, her husband -- Roderick Hills, Justice Antonin Scalia, and the four Hills children -- Laura, Rick, Megan, and Lisa. IV. PRESS PLAN Pool coverage V. Sequence of Events -You will enter the Indian Treaty Room and greet Ambassador Hills. -You deliver brief remarks. -Ambassador Hills, Justice Scalia, and Mr. Hills will join you at the microphone for the swearing in. -Ambassador Hills will deliver brief remarks. -At the conclusion of her remarks, Ambassador Hills will give you a small present, a shirt that reads "Think Big. " -You will then present Ambassador Hills with a free trade tool, a crowbar. You then depart. THE WHITE HOUSE Office of the Press Secretary For Immediate Release February 6, 1989 NEWS CONFERENCE OF THE PRESIDENT Room 450 Old Executive Office Building 4:10 P.M. EST THE PRESIDENT: Well, for the more than half a century, the U.S. has operated a deposit insurance program that provides direct government protection to the savings of our citizens. This program has enabled tens of millions of Americans to save with confidence. In all the time since creation of the deposit insurance, savers have not lost one dollar of insured deposits. And I am determined that they never will. Deposit insurance has always been intended to be self-funded. And this means that the banks, the savings and loans and credit unions that are insured pay a small amount of their assets each year into a fund that's used to protect depositors. In every case these funds are spent to protect the depositors, not the institutions that fail. For the last twenty years, conditions in our financial markets have grown steadily more complex, and a portion of the savings and loan industry has encountered steadily growing problems. These financial difficulties have led to a continuous erosion of the strength of the Federal Savings and Loan Insurance Corporation -- FSLIC. Economic conditions have played a major role in this situation. However, unconscionable risk-taking, fraud, and outright criminality have also been factors. Because of the accumulation of losses at hundreds of these thrift institutions, additional resources must be devoted to cleaning up this problem. We intend to restore our entire deposit insurance system to complete health. While the issues are complex, and the difficulties manifold, we will make the hard choices, not run from them. We will see that the guarantee to depositors is forever honored, and we will see to it that the system is reformed comprehensively so that the situation is not repeated again. To do this, I am today announcing a comprehensive and wide-ranging set of proposals. The Secretary of the Treasury, Nicholas Brady, will describe these proposals to you in detail in a few minutes. However, I think it's important to summarize some of the major points. The proposals include four major elements. First, currently insolvent savings institutions will be placed under the joint management of the FDIC and FSLIC pursuant to existing law. This will enable us to control future risk-taking and to begin reducing ongoing losses. Second, the regulatory mechanism will be substantially overhauled to enable it to more effectively limit risk-taking. The FDIC would become the insurance agency for both banks and thrifts under this system, although there's no commingling of funds. The insurer will have the authority to set minimum standards for capital and accounting. Uniform disclosure standards will also be implemented. The chartering agency for thrifts would come under the general oversight of the Secretary of the Treasury. MORE - 2 - Third, we will create a financing corporation to issue $50 billion in bonds to finance the cost of resolving failed institutions, which will supplement approximately $40 billion that has already been spent. All of the principal of these bonds, and a portion of the interest on them, will be paid from industry sources. However, the balance would be paid from on-budget outlays of general revenues. Hopefully, some of these revenues will be recovered in the future through sale of assets and recovery of funds from the wrongdoers. Fourth, we plan to increase the budget of the Justice Department by approximately $50 million to enable it to create a nationwide program to seek out and punish those that have committed wrongdoing in the management of these failed institutions. These funds will result in almost doubling the personnel devoted to the apprehension and prosecution of individuals committing fraud in our financial markets. As you can see, these proposals are based upon several overriding principles. First, I will not support any new fee on depositors. Second, we should preserve the overall federal budget structure, and not allow the misdeeds and the wrongdoings of savings and loan executives and the inadequacy of their regulation to significantly alter our overall budget priorities. And third, I have concluded that this proposal, if promptly enacted, will enable our system to prevent any repetition of this situation. And fourth, I have decided to attack this problem head-on, with every available resource of our government because it is a national problem. I have directed that the combined resources of our federal agencies be brought together in a team effort to resolve the problem. And fifth, I believe that banks and thrifts should pay the real cost of providing the deposit insurance protection. The price the FDIC charges banks for their insurance has not been increased since 1935. We propose to increase the bank insurance premium by less than seven cents per $100 of insurance protection that they receive. Every penny collected would be used to strengthen the FDIC so that the taxpayers will not be called on to rescue it a few years from now. And I make you a solemn pledge that we will make every effort to recover assets diverted from these institutions, and to place behind bars those who have caused losses through criminal behavior. Let those who would take advantage of the public trust and put at risk the savings of American families anticipate that we will seek them out, pursue them and demand the most severe penalties. In closing, I want to just say a word to the small savers of America. Across this great land families and individuals work and save, and we hope to encourage even greater rates of savings to promote a brighter future for our children. Your government has stood behind the safety of insured deposits before, it does today, and it will do so at all times in the future. Every insured deposit will be backed by the full faith and credit of the United States of America, which means that it will be absolutely protected. For the future, we will seek to achieve a safe, sound and profitable banking system. However, integrity and prudence must share an equal position with competition in our financial markets. Clean markets are an absolute prerequisite to a free economy, and to the public confidence that is the most -- that is its most important ingredient. MORE - 3 - I've determined to face this problem squarely, and to ask for you support in putting it behind us. I have ordered that the resources of the Executive Branch be brought to bear on cleaning up this problem. I have personally met with the leadership of Congress on this issue. My administration will work cooperatively with Congress as the legislation that we will submit in a few days' time is considered. I call on the Congress to join me in a determined effort to resolve this threat to the American financial system permanently, and to do so without the delay. I welcome the leaders that are with me here on this platform. I think their support says a lot about the efficacy of our proposal. And now I propose to take just a few questions. On the technical aspects, I will defer to these people, and then I'll be glad to turn this over to Secretary Brady. I believe we start with Helen and then Terry and then get going -- Q Mr. President, are you guaranteeing that the extra costs premiums, increases and so forth -- will not be past on to the depositors and taxpayers? And also, what is your responsibility in this debacle -- I mean, the Reagan-Bush zeal for deregulation of business and banking? THE PRESIDENT: On the first place, we're not guaranteeing that. I would hope that wouldn't happen, but there is no guarantee what the institutions will do. Secondly, there is enough to be said for everybody in this together trying to solve this problem, so I can't equate any personal -- not inclined to go into any personal blame, simply to say that we've got to solve this problem and we're on the path to doing that. Q Mr. President, the House votes tomorrow on that controversial pay raise plan, and the Senate has already voted against it. Would you sign a bill that vetoes the pay raise, not only for the members of Congress, but also for federal judges and other high officials in the government? THE PRESIDENT: I've said I support it. Q Mr. President, there is a feeling that part of this problem is attributable to deregulation of the financial industry. In retrospect, do you think that deregulation might have gone too far in the last ten years or so? And in the future, is your marching order to your administration to be a little more careful in regulating this particular industry? THE PRESIDENT: Jerry, I don't know the answer. I'd be most interested to know what our experts here feel about whether -- how much of the problem could be attributed to deregulation. I just don't know the answer to your question, so I can't reply. Q Mr. President, you have placed considerable stress in these early days of your presidency on ethics and propriety, yet in recent days there has been controversy on Capitol Hill concerning the propriety of some of Tower's alleged behavior, questions raised over the weekend about the financial investments on the private funds of the man in charge of ethics, your counsel, Boyden Gray, and other questions involving members of the administration -- or members-to-be of the administration. And I wonder, sir, what has happened here? Is it too harsh behavior on our part, too lax behavior on your part? What? THE PRESIDENT: I don't think anything has happened. I learned long ago in public life not to make judgments based on allegations. But having said that, I want to have my administration aspire to the highest possible ethical standards. And we have appointed a commission to go out there now and try to detail what these standards should be. And we are in a new era on these matters. Matters that might have been approved and looked at one way, may have MORE - 4 - a different perception today. And so what I want to do is finalize our standards and then urge everybody in all branches of government to aspire to those standards. But I do think, Brit, that it's fair that we not reach judgment on Senate hearings before the Senate hearings are concluded because it's very hard to filter out fact from fiction, spurious allegations from fact. And I am not about to make a judgment based on a sensationalized newspaper story. I'm simply not going to do that. That wouldn't be fair and I'm not sure how ethical it would be. So let's wait and see this -- you're referring to the Tower matter up there -- that matter has been looked at by the FBI, the committee now has that, they have the responsibility to make determinations, and I'll be very interested to see what they say. But I am not going to make -- jump to conclusions based on stories that may or may not have any validity at all. or Mr. President, even if, as your spokesman says you do, you continue to back Senator Tower for the position, there are those you've heard who say that the best thing he could do for you is to step aside because even if confirmed he then would become damaged goods, weaker in administering a very, very tough job on your behalf. How do you respond to that suggestion? THE PRESIDENT: Well, I think people would not want a person to step aside in a rumor, particularly if the rumor is baseless. And the process -- what the problem is -- the process is taking a little longer than I would like, and yet I think the Senate has got to do what they're doing -- looking at these allegations very carefully. But you know, as I said here at this same podium a while back, the American people are basically fair. And if these allegations prove to be allegations, without fact behind them, I think the people are going to say wait a minute, what went on here, how come it was all this we read this one day and then kind of a puff of smoke the next. And so, I don't think in your substantive question though, that if it proves -- if the Senate committee gives its endorsement to the Senator, particularly after all of these allegations, that there is any danger at all of damage to his credibility or his ability to do the job. Q Mr. President, there are new and substantive allegations that Senator Tower lost control over the highly classified security documents and computer disks that were used in Geneva under his watch. If those allegations prove to be founded, would you then withdraw his nomination? THE PRESIDENT: I would not answer hypothetical questions of that nature. You're telling me something that I haven't heard before. And we did have access to FBI reports. So if this matter is now before the Congress, let them investigate it. But I can't go into a hypothesis. All I would be doing would be adding to I think speculation that is not helpful at this juncture. Q But, sir, will you pursue these allegations in the Executive Branch? Are you going to track what the FBI is looking into? Are you going to personally surveil these kinds of allegations yourself? THE PRESIDENT: Every rumor and every innuendo, no. But if you're making if there's some substantive allegation of this nature, of course it would concern me. Q Mr. President, back to S&Ls if we might, millions of -- (laughter) -- millions of Americans save alternatively. That is they save in mutual funds, stocks, and that kind of thing. As I read it, you've now outlined a plan that places a lot of the S&L bailout on the backs of the general treasury. How fair is that? THE PRESIDENT: We've got a major problem and something has to be done. And this is the fairest system that the best minds in this administration can come up with. And so I again would ask you to ask the specifics of the treasury burden, to the Chairman of MORE - 5 - the Federal Reserve, or the Secretary of the Treasury, ask how they see that. But look, as I've said, there is no easy answer to this. All I want to do is make a sound proposal, work to put it into effect, and have that proposal such that the country won't have to face this problem again. Q Mr. President, you said you dropped the deposit fee idea, but this plan you've given us has an increase in premiums that may be paid by consumers, as well as a large amount of taxpayers funds. Isn't that the same thing consumers and taxpayers are still going to have to pay the price for this? THE PRESIDENT: Well, as I indicated earlier on, there is no guarantee of passing this on to the consumer, nor is there a guarantee it won't be passed on. But this arrangement has been there since - for 50 years, and you might argue whether it's been passed on or not. I just don't know, I haven't seen the flow through in the industry. But nothing is without pain when you come to solve a problem of this magnitude. Q Mr. President, you've talked to several members of Congress in various receptions and dinners and personal conversations over the past couple of weeks, and in many of them you have discussed this -- your plan for this problem. What is your feeling of the reception that it's going to get on Capitol Hill and of the selling job that awaits you now to get it passed? THE PRESIDENT: We may have a big selling job, but I've been encouraged so far with the spirit epitomized by the members of Congress, particularly at the joint leadership meeting the other day. We didn't go into every detail of this. These plans were still being formulated and I wanted to get their views. I was encouraged by what Bill Seidman told me earlier on about how he what he felt the receptivity of the plan will be. But I don't think it's fair to the Congress to say that they have signaled to me that they are going to be enthusiastic on this plan, although I hope they are. Q Mr. President -- THE PRESIDENT: I'm going to take about three more and then turn this over to these gentlemen here who are prepared to go into as much detail as you want. Q Mr. President, these allegations that surround Tower now, at least variations on the theme, surfaced early in the transition allegations of womanizing and taking money from defense contractors that sort of thing. Have you satisfied yourself that he is still the nominee you want? Can you give us at this time a full-hearted endorsement of Tower? THE PRESIDENT: Yes, I can and I will right now because some of the very same allegations that were floated that long ago apparently have been looked at and examined by the best possible examiners - and I'm talking about the FBI and found to be groundless. So therefore I'm not about to change my view. If somebody comes up with facts, I hope I'm not narrow-minded enough that I wouldn't take a look. But I am not going to deal in the kinds of rumors that I've seen reported and then knocked down and then reported and then knocked down. Q Mr. President -- THE PRESIDENT: One two to go. Q There have been hints that Gorbachev may propose steps to diffuse the situation in Central America. I wonder if you see the possibility of superpower deals in Central America, and if so, what -- if you could suggest what would be acceptable for you? THE PRESIDENT: I don't know about a deal, but I can see MORE - 6 - a possibility of cooperation in Central America because I would like the Soviets to understand that we have very special interests in this hemisphere, particularly in Central America, and that our commitment to democracy and to freedom and free elections and these principles is unshakeable, and I don't think they really have substantive interests in this part of the world -- certainly none that rival ours. So I would like to think they would understand that and there are so many areas where we could demonstrate a new spirit of cooperation, and this would clearly be one of them. So I'd like to think that is the way that the matter would be approached by the Soviets. Yes, follow-up. Q If I could follow up and ask you whether an understanding on Central America -- whether you'd be willing to include abandonment of aid to the Contras as part of such an understanding? THE PRESIDENT: I wouldn't make a deal on that with the Soviets, nor would that come up. I don't believe we'd ever have a -- I can't see a situation of that nature arising, knowing as I do what will be negotiated and discussed with the -- so I think that's so hypothetical as to not even be a possibility of any kind. Yes, Charles. And then I do have to run. Q Mr. President, we still don't know what the taxpayers' burden is in here. Out of this $40 billion, it says first from S&L funds and the shortfall from Treasury funds. How big is it, and have you, in going through your budget had to knock out some things to pay for this? THE PRESIDENT: We've had to knock out a lot of things on the overall budget for a lot of different reasons. But I'd like to leave this for Dick, for the questioning, to give the specific amounts. It is shared, as I've indicated, and he can give you the amounts that are involved. Listen, thank you all very much, and now I'm going to turn this over to Secretary Brady. And then in order I guess they'l refer to each of these others. Q Mr. President, one more word for the small -- Q -- seats back here, Mr. President? THE PRESIDENT: What was that substantive question? (Laughter.) Q In the back -- we didn't see you get back in this area. THE PRESIDENT: We didn't get that far back, no, but if there's been an egregious offense to those in the back benches, I will take one parting question. And inasmuch as you raised it, fire away. Q Thank you very much, sir. Back on the ethics issue, a couple of -- THE PRESIDENT: Mindful that the last questions always does get you in great trouble -- (laughter) -- go ahead. or Your perspective nominees -- one of your perspective nominees and your counsel have just recently changed their minds on matters that would have violated the ethics rules under the Reagan administration. Did you have difficulty in getting the word out that times would be tougher under your administration? MORE - 7 - THE PRESIDENT: No, I don't think so. For example, if you're referring to the Boyden Gray matter, which I think you are, that matter was reviewed every single year by the Office of Government Ethics, and he was deemed in compliance every single year. But now we've got a new ballgame here. He's the General Counsel here in the White House and I'm the President, and I've set out rhetorically the highest possible standards and we're trying to back that up by findings from this commission. And so I do think that we've got to be very careful about perceptions of impropriety when it comes to conflict of interest. Not rumors or innuendos of one sort or another. I don't think you can -- I should deal in those things. But when it comes to perceived conflicts of interest, I'd like our people to bend over backwards. And I think that's what has happened in both the question of Lou Sullivan, whether he's entitled to -- all he did was ask, am I entitled to continue these arrangements with this small university. And all Boyden did, in my view now, is to try to go a step beyond what the government ethics office has said to avoid the perception of impropriety. But -- so I think it might be different now. I have to approach it differently as President. Not that you have lower standards, but I just think that again this whole question of perception we've got to look at it very, very carefully. But I want to be fair. I do not want to have the loudest charge, no matter how irresponsible, be that that sets the standards. We've got to achieve more objective standards. And that's why I'm putting a lot of faith in the -- hope to put a lot of faith in the findings of Judge Wilkey and former Attorney General Griffin Bell. And they will be looking at all these matters in terms of reality, and then, to some degree I'm sure, in terms of perception. So what might be legal and might be perfectly sound ethically might have to be altered given this new approach because of perception. It's a delicate one. I don't want to have the standards set in such an irresponsible way that good people just throw up their hands and say, look, who needs that kind of grief, who needs it, why should I have to give up all my whatever it is -- a health plan from the XYZ company. And yet, on the other hand, we're in a different time now. We're in a time when we've got to try to set these standards as high as possible. So I think Dr. Sullivan did the right thing in asking what was proper. I think Boyden Gray did the correct thing every year in asking what was proper and reviewing his own personal holdings in a family company with the Ethics Office, but now taking another step because of perception in this case. So we've got to reach -- we've got to work with these individuals to find the proper answer and we've got to work with the commission to try to codify these standards. Q Sir, by following, you said during the campaign very clearly that your staffers would not take outside income. I wonder why they need a legal opinion to understand that? THE PRESIDENT: They had a legal opinion saying it was perfectly proper from this family company, and so now we're changing that and saying, look, there is this different perception problem here in this new era, so let's bend over as far backwards as we possibly can to -- you know, to recognize that. Thank you all very much. Q What about leveraged buy-outs, Mr. President? THE PRESIDENT: There's your LBO man right there. THE PRESS: Thank you. END 4:35 P.M. EST THE WHITE HOUSE Office of the Press Secretary For Immediate Release February 6, 1989 REMARKS BY THE PRESIDENT AND UNITED STATES TRADE REPRESENTATIVE CARLA HILLS AT SWEARING-IN CEREMONY Indian Treaty Room 1:45 P.M. EST THE PRESIDENT: Thank you very much. Well, it is a great pleasure for me to be here for the swearing-in of our friend, Carla Hills, as U. S. Trade Representative. This is a position of great importance to our country. And with the emergence of a truly global economy, trade issues have taken on a new prominence. And I think, as Lord Macaulay so rightly said, that "Free trade is one of the greatest blessings which a government can confer on a people." I have great confidence in the ability, the wisdom, and the toughness of Carla Hills, which is why I chose her in the first place for this critically important post. This is her second Cabinet position, and she won universal respect for her service as Secretary at the Department of HUD -- Housing and Urban Development. And I know that she'll win strong support in this important current role. She's a skilled negotiator with a strong international background and extensive experience in government. Trade issues involve listening to many voices within our nation, while working with the full breadth of government and maintaining a clear sense of mission. As I said when I nominated her, I can think of no one better suited to be America's trade minister at home and abroad. And Carla will have a very committed and talented group of people at USTR who work hard and bargain hard for the people of our country. I greatly respect, incidentally, the dedication and expertise of those with whom Carla will be working at USTR, and I'm glad that many of you are here with us today. America, as the world's number one trading nation, has the largest stake in the continued expansion of world trade, which has been one of the key factors in our growing prosperity. In addition, our trade relationships are a vital factor in our -- America's international alliances that help secure freedom and stability for so much of the world. We will apply firmness to help promote what is fair, but we will always remember that our major trading partners are not our enemies, but, indeed, they are our allies. We have a leading role to play in modernizing a trading system that has served the world well for over four decades. There's a new and dynamic international order in the economy that offers the chance for higher levels of prosperity for all nations which freely participate in this international economy. We want to do more to remove trade barriers; to address the issue of agriculture; and to bring the benefits of free trade to new areas, including services, investment, and the protection of intellectual property. The current Uruguay round of the GATT talks holds many opportunities for progress in multilateral negotiations. There's also a new international impetus for trade expansion created by our U.S.-Canada Free Trade Agreement. This agreement can serve as a model, and it proves that freer trade MORE - 2 - between nations is the wave of the future. Ladies and gentlemen, the goal of this administration's trade policy, simply put, is to open markets, not close them; to fight protectionism, not to give in to it. We don't want an America that is closed to the world. What we want is a world that is open to America. We're going to work to promote American exports and to see to it that in dealing with the United States other nations play by the rules. As Carla said during her own confirmation hearings, we will open foreign markets with a crowbar where necessary, but with a handshake whenever possible. And, Carla, it is now my pleasure to witness you take the oath of office. And we're very fortunate that Judge Scalia, one of our Supreme Court Justices, is here with us today. (Applause.) (Ambassador Hills is sworn in.) (Applause.) AMBASSADOR HILLS: Thank you. Mr. President, Justice Scalia, members of Congress, distinguished guests and dear friends, I thank you one and all for being here, and I especially want to thank the members of my wonderful family for their enormous support, and I confess that I am absolutely thrilled that they're all with me today. I am honored and I look forward to serving as the United States Trade Representative, and to all of you I pledge to devote all of my energies to carrying out the trade policy goals that you, Mr. President, have just outlined. We will seek to open markets, not close them, and we will fight protectionism, not give in to it. You can be certain -- absolutely certain, Mr. President -- that those are the goals of the office of U.S. Trade Representative. We seek free trade not just for a more prosperous America -- we seek it as a part of our great quest for a freer, fairer and more prosperous world. Rather we seek to have our markets opened -- our foreign markets opened to the entire community of nations, rich and poor, and from that unfettered commercial exchange comes healthy world growth and increased prosperity for all people. As a nation, we seek open trade because that goal is as morally correct as it is economically beneficial. During the past week, I have had the opportunity to meet with and work with the extraordinarily talented and dedicated women and men at the U.S. Trade Representative's office, and, Mr. President, with this group of splendid professionals, we can meet the challenge that you have give us. Our office will work closely with other federal agencies and with Congress, and I know that you, Mr. President, share my gratitude for the commitments that members of both the House and the Senate have made to work alongside of our trade negotiators. And we all have gained immeasurably in drawing upon the experience and the commitment of the private sector. Together we can build an expanding multilateral trade system based upon equitable, clear and enforceable rules, we can strengthen our bilateral relationships and we can uphold our trade laws. In short, we can do great things together. Now last month, Mr. President, you called your Cabinet together to receive your very clear marching orders. Your first commandment was think big. Well, the Office of the United States Trade Representative is small, but its talent and dedication is enormous, and your commandment is our motto. And in that spirit, Mr. President, we offer you a token of our wholehearted commitment to your goals and our great affection. And so if I could just give you -- (Laughter and applause.) THE PRESIDENT: I have a funny feeling, having worked with Carla and knowing her ability, that that handshake, matched up MORE - 3 - by a lot of conviction, is going to get the job done for the most part. But I was thinking the other day, when we had the Prime Minister of Japan here, and he met Carla -- perhaps not for the first time, but the first time officially with her new role about to unfold as USTR -- and maybe I was dreaming something, but I thought I saw him looking her over very carefully -- (laughter) -- and I just have a funny feeling that that combination of the handshake and the crowbar is going to be tremendously successful. (Laughter and applause.) AMBASSADOR HILLS: Thank you very much. Thank you all for being here. END 1:57 P.M. EST REMARKS FOR SWEARING-IN OF AMBASSADOR CARLA HILLS INDIAN TREATY ROOM FEBRUARY 6, 1989 1939 FEB -3 7.1 16 THANK YOU VERY MUCH. IT IS A GREAT PLEASURE TO BE HERE FOR THE SWEARING-IN OF MY FRIEND CARLA HILLS AS UNITED STATES TRADE REPRESENTATIVE. THIS IS A POSITION OF GREAT IMPORTANCE TO THE FUTURE OF OUR COUNTRY. WITH THE EMERGENCE OF A TRULY GLOBAL ECONOMY, TRADE ISSUES HAVE TAKEN ON A NEW PROMINENCE. AND I THINK, AS LORD MACAULAY so RIGHTLY SAID, THAT "FREE TRADE [IS] ONE OF THE GREATEST BLESSINGS WHICH A GOVERNMENT CAN CONFER ON A PEOPLE...." 2 I HAVE GREAT CONFIDENCE IN THE ABILITY, WISDOM, AND TOUGHNESS OF CARLA HILLS, WHICH IS WHY I CHOSE HER FOR THIS CRITICALLY IMPORTANT POST. THIS IS HER SECOND CABINET-LEVEL POSITION, AND SHE WON UNIVERSAL RESPECT FOR HER SERVICE AS SECRETARY OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. AND I KNOW THAT SHE WILL WIN STRONG SUPPORT IN HER CURRENT ROLE. SHE IS A SKILLED NEGOTIATOR WITH A STRONG INTERNATIONAL BACKGROUND AND EXTENSIVE EXPERIENCE IN GOVERNMENT. 5 WE WILL APPLY FIRMNESS TO HELP PROMOTE WHAT IS FAIR, BUT WE WILL ALWAYS REMEMBER THAT OUR MAJOR TRADING PARTNERS ARE NOT AMERICA'S ENEMIES, THEY ARE HER ALLIES. WE HAVE A LEADING ROLE TO PLAY IN MODERNIZING A TRADING SYSTEM THAT HAS SERVED THE WORLD WELL FOR OVER FOUR DECADES. THERE IS A NEW AND DYNAMIC INTERNATIONAL ECONOMY THAT OFFERS THE CHANCE FOR HIGHER LEVELS OF PROSPERITY FOR ALL NATIONS WHICH FREELY PARTICIPATE IN IT. 6 WE WANT TO DO MORE TO REMOVE TRADE BARRIERS, TO ADDRESS THE ISSUE OF AGRICULTURE, AND TO BRING THE BENEFITS OF FREE TRADE TO NEW AREAS, INCLUDING SERVICES, INVESTMENT, AND THE PROTECTION OF INTELLECTUAL PROPERTY. THE CURRENT URUGUAY ROUND OF THE GATT TALKS HOLDS MANY OPPORTUNITIES FOR PROGRESS IN MULTILATERAL NEGOTIATIONS. THERE IS ALSO A NEW INTERNATIONAL IMPETUS FOR TRADE EXPANSION CREATED BY THE CANADA-U.S. FREE TRADE AGREEMENT THIS AGREEMENT CAN SERVE AS A MODEL, AND IT PROVES THAT FREER TRADE BETWEEN NATIONS IS THE WAVE OF THE FUTURE 3 TRADE ISSUES INVOLVE LISTENING TO MANY VOICES WITHIN OUR NATION, WHILE WORKING WITH THE FULL BREADTH OF GOVERNMENT AND MAINTAINING A CLEAR SENSE OF MISSION. As I SAID WHEN I NOMINATED HER, I CAN THINK OF NO ONE BETTER SUITED TO BE AMERICA'S "TRADE MINISTER AT HOME AND ABROAD." AND CARLA WILL HAVE A VERY COMMITTED AND TALENTED GROUP OF PEOPLE AT U.S.T.R. WHO WORK HARD AND BARGAIN HARD FOR THE PEOPLE OF OUR COUNTRY. 4 I GREATLY RESPECT THEIR DEDICATION AND EXPERTISE, AND I'M GLAD so MANY OF YOU COULD BE HERE TODAY. AMERICA, AS THE WORLD'S NUMBER ONE TRADING NATION, HAS THE LARGEST STAKE IN THE CONTINUED EXPANSION OF WORLD TRADE, WHICH HAS BEEN ONE OF THE KEY FACTORS IN OUR GROWING PROSPERITY. IN ADDITION, OUR TRADE RELATIONSHIPS ARE A VITAL FACTOR IN AMERICA'S INTERNATIONAL ALLIANCES THAT HELP SECURE FREEDOM AND STABILITY FOR so MUCH OF THE WORLD. 7 LADIES AND GENTLEMEN, THE GOAL OF THIS ADMINISTRATION'S TRADE POLICY, SIMPLY PUT, IS TO OPEN MARKETS, NOT TO CLOSE THEM; TO FIGHT PROTECTIONISM, NOT TO GIVE IN TO IT. WE DON'T WANT AN AMERICA THAT IS CLOSED TO THE WORLD. WHAT WE WANT IS A WORLD THAT IS OPEN TO AMERICA. WE ARE GOING TO WORK TO PROMOTE AMERICAN EXPORTS AND TO SEE TO IT THAT IN DEALING WITH THE UNITED STATES OTHER NATIONS PLAY BY THE RULES. 8 As CARLA SAID DURING HER CONFIRMATION HEARINGS, WE WILL OPEN FOREIGN MARKETS WITH A CROWBAR WHEREVER NECESSARY, BUT WITH A HANDSHAKE WHENEVER POSSIBLE. AND, CARLA, IT IS MY PLEASURE TO NOW WITNESS YOU TAKE THE OATH OF OFFICE, ONCE AGAIN. [AMBASSADOR HILLS TAKES THE OATH.] 9 CONGRATULATIONS. I HAVE A SMALL GIFT FOR YOU AS WELL, CARLA. As I NOTED, YOU PROMISED THE SENATE THAT YOU WILL TRY TO ENSURE FREE TRADE WITH OUR TRADING PARTNERS BY EXTENDING A HANDSHAKE, BUT IF NECESSARY, YOU'D USE A CROWBAR. I AM PLEASED THEREFORE TO PRESENT YOU WITH THIS OFFICIAL PRESIDENTIAL CROWBAR, FOR USE ONLY AS NEEDED IN THE LINE OF DUTY. I AM CONFIDENT, HOWEVER, THAT YOUR EXPERIENCE AND SUBSTANTIAL NEGOTIATING SKILL WILL MAKE YOUR HANDSHAKE ALONE A POWERFUL FORCE FOR FREE TRADE. ### Tim, Ellen Attendees for yesterday' (2.6.89) meeting in oval ofc at 9 a.m. PARTICIPANTS: The President The Vice President The Secretary of State The Secretary of the Treasury The Secretary of Defense Designate Acting Secretary of Defense Chief of Staff to the President Assistant to the President for National Security Affairs The Director, Office of Management and Budget The Director of Central Intelligence Chairman, Joint Chiefs of Staff Vice Chairman, Joint Chiefs of Staff Air Force Chief of Staff Army Chief of Staff Chief of Naval Operations Marine Corps Commandant Deputy Assistant to the President for National Security Affairs Rg. DATE, TIME February 6, 1989, 0900 - 1015 AND PLACE: Oval Office THE WHITE HOUSE WASHINGTON Page 1 TELEPHONE MEMORANDUM West Wing Monday, February 6 , 1989 TIME NAME ACTION PLACED DISC OUT AM 9:15 a.m. VIC GOLD - outraged at the 11:40 POTUS 11:45 treatment Boyden Gray is receiving returned call INC PM in the press. He will do all he OUT AM can to help. He has made a few calls to friendly columnists already. INC PM This is exactly the reason why OUT AM good people don't serve. NO NEED TO RETURN CALL -- JUST FYI INC PM OUT AM 3:25p.m. Chase Untermeyer < TALKED 3:30 re: current status of Ambassadorial appointments INC PM OUT AM INC PM OUT AM INC PM OUT AM INC PM OUT AM INC PM OUT AM INC PM OUT AM INC PM OUT AM INC PM GPO : 1983 o - 405-660 : QL 2 THE WHITE HOUSE WASHINGTON TELEPHONE MEMORANDUM E. S. T. FEBRUARY 6th , 19 89 PRESIDENT-BUSH TIME NAME ACTION PLACED DISC OUT AM 7:56 SECY. NICHOLAS BRADY TOLD BRIDGET MONTAG OFFICE-U. S. TREASURY LEFT WORD INC PM 7:40 WHITE HOUSE ADMIN. EXT. 422 7:36 SECY BRADY CALLED AGAIN OUT AM 7:38P TALKED OK INC PM OUT AM MR. RICHARD DARMAN OFFICE-WASHINGTON, D.C. INC 10:54 PM 10:56 WHITE HOUSE ADMIN. EXT. 820 TALKED OK OUT AM INC PM OUT AM MR. C. BOYDEN GRAY OFFICE-WASHINGTON, D. C. INC 11:09 PM 11:17 WHITE HOUSE ADMIN. EXT. 765 TALKED OK OUT AM INC PM OUT AM MR. C. BOYDEN GRAY ENROUTE OFFICE OFFICE-WASHINGTON, D.C. PRESIDENT WILL CALL INC 5:37 PM WHITE HOUSE ADMIN. EXT. 765 OUT AM INC PM OUT AM MR. JOHN SUNUNU OFFICE-WASHINGTON, D.C. INC 6:41 PM 6:43 WHITE HOUSE ADMIN. EXT. 685 TALKED OK OUT AM INC PM OUT AM MR. JOHN SUNUNU OFFICE-WASHINGTON, D.C. TALKED OK 6:48 6:49 INC PM WHITE HOUSE ADMIN. 685 GPO : 1983 0 - 405-660 : QL 2 THE WHITE HOUSE WASHINGTON TELEPHONE MEMORANDUM SIGNAL SWITCHBOARD February 6 . 198 TIME NAME ACTION PLACED DISC OUT AM No Calls INC PM OUT AM INC PM OUT AM INC PM OUT AM INC PM OUT AM INC PM OUT AM INC PM OUT AM INC PM OUT AM INC PM OUT AM INC PM OUT AM INC PM OUT AM INC PM GPO : 1982 0 - 370-008 : QL 2 PRESIDENTIAL MOVEMENTS LOCATION Washington, D.C. DATE 6 February 1989 TIME MOVEMENTS 0705 Oval Office 1124 South Grounds 1129 Oval Office 1344 Room 474, Old Executive Office Building 1416 Oval Office 1424 South Grounds 1427 Depart South Grounds via Motorcade 1432 Arrive Federal Aviation Administration Building 1459 Depart Federal Aviation Administration Building via Motorcade 1504 Arrive South Grounds 1505 Oval Office 1601 Room 450, Old Executive Office Building 1641 Oval Office 1744 Residence 1749 South Grounds 1800 Residence WHCA FORM 15, OCTOBER 15, 1980 Monday, FEBRUARY 6 6:00 Breakfast for President and Mrs, Bush 6:10 Mrs. Bush to the South Grounds 6:15 Mrs, Bush to the Second Floor 6:30 Coffee and Juice for Dr. and Mrs. Neblett 7:03 The President to the Oval Office 7:05 Mrs, Bush accompanies Dr. and Mrs. Neblett to the South Portico to bid them farewell 7:16 Mrs. Bush to the Second Floor 11:42 Photographers Powers and Valdez to the Second Floor 11:50 down 11:55 Mrs. Bush to the South Grounds 12:04 Mrs. Bush and Mrs. Stewart to the Second Floor 12:30 Lunch for Mrs. Bush and Mrs. Stewart 1:15 Mrs. Stewart departs Residence 2:15 Mrs. Bush to Oval Office 2:25 The President and Mrs. Bush depart for swearing-in of Samuel Skinner as Secretary of Transportation at FAA Building 4:00 Mrs, Bush arrives South Grounds, to the Second Floor 5:47 The President jogs to the Second Floor 5:49 The President and Mrs, Bush to the South Grounds 6:00 The President and First Lady to the Second Floor 6:10 Mrs. bush to the Ushers Office 6:10 Mrs. Bush to the Second Floor 6:17 Marvin, Margaret and Marshal Bush to the Second Floor 7:15 Dinner for the President, Mrs., Marvin, Margaret and Marshal Bush 8:25 Jeb Bush to the Second Floor 8:35 Marvin, Margaret and Marshal depart the White House 9:58 Retired Houseguest Jeb Bush Lincoln Bedroom MRS. BUSH'S SCHEDULE Monday, February 6, 1989 2:15 p.m. -Depart Residence en route Oval Office. -Arrive Oval Office to join the President. 2:20 p.m. -Depart The White House en route Federal Aviation Administration Building (&GB). 2:30 p.m. -Arrive Swearing-in Ceremony of Samuel Skinner as Secretary of Transportation (30 minutes) (&GB). 3:00 p.m. -Depart Federal Aviation Administration Building en route Congressional Club, 16th and U Street, N.W., D.C. 20009, 332-1155. NOTE: The President will assume separate schedule. (Drive Time: 10 min.) 3:10 p.m. -Arrive Congressional Club's Reception in your honor. (Scenario forthcoming) 3:50 p.m. -Depart Congressional Club en route The White House. 4:00 p.m. -Arrive The White House. FYI, 8:00 p.m. (approximately) Jeb Bush arrives The White House and overnights. Overnight Guest: Jeb Bush 2-2-89 1:39 Dpt oval 1:42 am. And.Treate Rm Cof 1:45 am into Amtreate pm 1:57 our 5th Floor Reception 2:11 dpt 5th Floor 2:12 dpt OEOB 2:14 an oval 2:23 dptoval 2.25 dpt 5. grouds. 3:56 Dpt aral 4:00 an 450 0EOB Holdiy Rn w/smmd Breade 4:09 amount into 4:35 deput 450 Prescaf. Pun Car. 4:40 an o vol 5.42 are lawrPress off 5:43 dpt lower Puss mcOm OFFICE OF THE VICE PRESIDENT WASHINGTON SCHEDULE OF VICE PRESIDENT DAN QUAYLE FOR MONDAY, FEBRUARY 6, 1989 7:15 a.m. Depart Residence en route White House 7:45 a.m. Arrive White House 7:50 a.m. CIA Briefing WW Office 8:15 a.m NSC Briefing with President Oval (30 mins) Bush Office 8:45 a.m. Meeting with President Bush Oval (30 mins) and Governor Sununu Office 9:15 a.m. Personal Staff Time WW Office (45 mins) 10:00 a.m. Scheduling Meeting EOB Office (60 mins) 11:00 a.m. Meeting with Mary Moses Cochran EOB Office (30 mins) 11:30 a.m. Meeting with Bill Kristol EOB Office (30 mins) 12:00 p.m. Personal Staff Time EOB Office (4 hrs., 30 mins) 4:30 p.m. Taping with Dan Heath EOB Office (1 hr.) (Cochran) 5:30 p.m. Depart White House en route Residence 6:00 p.m. Arrive Residence (02/03/89 - 4:30 p.m.)