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1975/05/07 - Cabinet
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1534525
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1975/05/07 - Cabinet
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James M. Cannon Files (Ford Administration)
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The original documents are located in Box 45, folder "1975/05/07 - Cabinet" of the James M. Cannon Files at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. Digitized from Box 45 of the James M. Cannon Files at the Gerald R. Ford Presidential Library 6:30 PM - Cabinet Meeting aboard Sequois Wednesday, May 7, 1975 April 25, 1975 Dear Mr. Secretary: At the last Cabinet meeting the President asked the Cabinet members to discuss their position on consumer affairs with Virginia Knauer, and to meet with the appropriate Committee Chairmen, ranking members and staff to discuss problems with the proposed Consumer Advocacy Agency. I would appreciate it if you would let me know by Wednesday, April 30th, what steps have been taken to meet the President's request. Sincerely, James E. Connor Secretary to the Cabinet The Henorable William E. Simon Secretary of the Treasury Department of the Treasury Washington, D. C. 20220 Identical letter sent to all Cabinet Officers LIBRARY GERALD ? FORD THE WHITE HOUSE WASHINGTON May 2, 1975 MEMORANDUM FOR: JIM CANNON FROM: JERRY H. M JONE At a recent Cabinet meeting the suggestion was made that each of the Cabinet Officers should contact the Chairman and ranking member of their authorizing committee to point out the difficulties that would be created for their agencies in the event the Consumer Protection Agency is enacted into law. The basic thesis for doing this is that the Consumer Protection Agency would have a major say in thwarting the original intent of much of the legislation under which those agencies act. The legislation now pending before the Congress would cut into the jurisdictional responsibilities of other committees in the Congress. Would you please contact each agency head asking them what they have done to make their views known to their committee chairman and ranking member on this legislation. Please submit a report to the President on these contacts. Thank you. BERALD FORD May 5, 1975 MEMORANDUM FOR: JIM CANNON FROM: JIM CONNOR SUBJECT: CABINET RESPONSES TO FOLLOW-UP ON THE CONSUMER ADVOCACY AGENCY DISCUSSION I queried all of the Cabinet officers on the extent to which they had followed up on the President's request that they meet with Virginia Knauer to discuss their position on communer affairs and to meet with appropriate Committee chairmen, ranking members and staff to discuss problems with the proposed Consumer Advocacy Agency. The responses have not been particularly encouraging. The following Cabinet members have scheduled appointments with Virginia Knauer: SecretaryButz (May 7th) Secretary Morton (May 27th) Secretary Dunlop (May 22) Secretary Schlesinger (meeting date not yet specified) A.G. Levi (meeting date not yet specified) Secretary Coleman (May 2) Secretary Simon (May 16) State Department has no plans for a meeting and HUD has not responded. (There be at present no Secretary of the Interior.) Re meetings with the Appropriate Congressional Committees, AG Levi has had conversation with Congressional people and meetings are scheduled by HEW (no specific date) and DOL (no specific date) 8 the other departments have not indicated plans for conversations with the Congressional members. FORD & LIBRARI THE WHITE HOUSE WASHINGTON May 5, 1975 MEMORANDUM FOR : PAM NEEDHAM FROM : JIM CAVANAUGH The attached is forwarded to you for appropriate handling. Attachment- VK Adm. Consumer Representation Plan read. 5/6/75 FORD : LIBRARY GERALD OF THE EXECUTIVE OFFICE OF THE PRESIDENT THE OFFICE OF MANAGEMENT AND BUDGET Date: 5-5 TO: Pat FROM: James J. Jura ACTION: Approval/Signature Comment Information File Draft response for James T. Lynn's signature For your handling REMARKS: Mr. Lynn ashid that to m. Cannot ASAP. this be sent 03113338 5/= lid UNITED :2 THE 4 ? OF 1513 2:00 THE WHITE HOUSEWED WASHINGTON MEY 2 5 58 OFFICE PH 275 May 2, 1/10 MEMORANDUM FOR: William J. Baroody, Jr. / James T. Lynn FROM: Virginia H Knzuer/S. John Byington YR SUBJECT: Ford's Administration Consumer Representation Plan Attached is a copy of the proposed synopsis of the plan as well as timetables relating to: Questionnaire and Departmental Plan Public Information Announcements VK's Monthly Reports to the President We would appreciate your reaction to both the concept and general timing. Look forward to working with you on this most exciting endeavor. Attachments FORD & GERALD LIBRARY 133.1 May 2, 1975 Proposed Synopsis of the Ford Administration's Consumer Representation Plan I. VK in cooperation with Baroody, Lynn and Cannon will: Develop in-depth questionnaire on public participation and consumer representation within each department's or agency's decision-making process. Distribute and explain at cabinet level Domestic Council meeting involving the President, who will also use it with the independent regulatory agencies. Collect and analyze the data publishing a summary of the results. This data would be the primary basis for individual meetings to discuss specific recommendations for inclusion in a Departmental Consumer Representation Plan, which would be submitted to the President through VK by the end of September 1975. II. During this five month period Interim Consumer Initiatives will be undertaken and announced. III. Each Executive Branch department or agency head will be personally responsible for: The completion of the questionnaire Participation in the individual meetings and Development of the Departmental Consumer Representation Plan IV. Each Departmental Plan will be published and will serve as the basis for a Presidential Management Objective within each department and agency. May 2, 1975 Proposed Timetable for Questionnaire and Departmental Plan Tues. 5/6 Draft of Timetable and Questionnaire to Lynn and Baroody Tues. 5/13 OMB Approved Draft circulated for comment Tues. 5/20 Timetable and Questionnaire final approval Tues. 5/27 Domestic Council Meeting with President and Executive Branch Agency Heads to review Timetable, Questionnaire and Procedure Thurs. 5/29 Independent Regulatory Presidential Meeting Tues. 6/17 Return of all Questionnaires to VK Tues. 7/1 VK Submits to President and Publishes Summary of data collected Tues. 7/8 Begin individual meetings with department and agency heads after follow-up Domestic Council meeting Tues. 9/2 Conclude all major meetings and finalize work on Departmental Plans Tues. 9/23 Submit to President through VK the individual Departmental Plans Thurs. 9/25 Publish Departmental Plans Tues. 10/7 Domestic Council meeting on implementation of Departmental Plans Tues. 10/14 Begin Second National Conference of State and Local Consumer Office Administrators Thurs. 10/16 Publish Second Edition of Guide to Federal Consumer Services May 2, 1975 Proposed Public Information Timetable Week of Action Planned for Announcement 5/5 Presidential meeting with Congressional Leader- ship asking postponement of action on S. 200 for balance of this session only--to give him a chance to really try to make government more open and responsive to the public in general and consumers in particular 5/12 Lynn meeting with Consumer Leaders (following President's Congressional Leadership meeting) to explain effort and be responsive to questions 5/19 Greiner and Dawson meet with PIO people and outline plan. They will provide announcement format and help in identification of substantive interim consumer initiatives 5/26 Domestic Council and Independent Regulatory Agency Meetings involving President and Heads 6/2-9-16-23 Series of Interim Consumer Initiative Announce- ments from various Departments and Agencies 6/30 Publish summary of questionnaire data collected 7/7 Follow-up Domestic Council Meeting to discuss data collected and forthcoming individual meetings with VK 7/14-21-28 Continuation of Interim Consumer Initiative 8/4-11-18-25 announcement 9/1-8-15 9/22 Publication of Departmental Plans 9/29 & 10/6 Series of briefings on Departmental Plans and Domestic Council meeting on implementation 10/13 Second National Conference of State & Local Consumer Office Administrators and Publication of Second Edition of "Guide to Federal Consumer Services" May 2, 1975 Proposed Timetable VK's Monthly Reports to the President VK will submit to President Ford a monthly report on activities and results relevant to Presidential initiative. Each report will be submitted within the first 10 days of the next month with copies to Lynn, Cannon and Baroody as well as to each of the Department and agency heads. Month Primary Thrust April TARP Study May Ford Consumer Plan including timetable and questionnaire plus Domestic Council and Independent Agency meeting June Summary Results of Questionnaire and Interim Consumer Initiatives July Progress of Individual Meetings and additional Interim Consumer Initiative August Wrapup of Individual Meetings and additional Interim Consumer Initiatives September Departmental Consumer Plans THE WHITE HOUSE WASHINGTON Cabinet Meeting on board the Sequoia, May 7 Note: The President is expected to arrive about 6:20 p.m. - it is requested that guests arrive between 6:00 and 6:15 p.m. I so that they will be on board prior to the President's arrival. Parking is available inside the secure compound area for limousines and other vehicles. Water transportation will be available for any late arrivals and for anyone desiring to depart early. Cocktails and a buffet dinner will be served prior to the discussion of the agenda items. James E. Connor Secretary to the Cabinet attachment: map EXIT FROM THE SOUTHEAST FREEWAY (I-95) AT 6TH STREET, S.E.; TURN RIGHT ON 7TH STREET LEFT ON M STREET, AND ENTER THE NAVY YD THROUGH THE 8TH ST GATE. ALTERNATIVELY TURN RIGHT ON 8TH ST AFTER EXITING FROM THE FREEWAY, LEFT ON M STREET AND INTO THE 9TH ST GATE. IF YOU ARE ENTERING THE NAVY YD BETWEEN THE HOURS OF 4:00 PM Capitol AND 5:30 PM, THE 8TH AND 9TH ST GATES ARE CLOSED. DURING THIS PERIOD, THE YARD MUST BE ENTERED THROUGH THE N STREET Library of GATE, WHICH IS LOCATED AT THE JUNCTION OF 11TH AND N STREETS, S.E. SEQUOIA IS BERTHED NEXT TO PIER ONE Congress WITHIN THE NAVAL ADMINISTRATIVE UNIT COMPOUND. SECURE PARKING IS AVAILABLE Independence Avenue FOR FURTHER INFORMATION, PLEASE CALL COMMANDING OFFICER, NAVAL ADMINISTRATIVE UNIT, 433-3673/4. New /south auehue Jersey 3rd. 95 Capitol Avenue Southeast 100MS 1/78 6th. Street 11th Street exit Street Freenday Street 9th street Marine Gate M Street Gate 8 # Navy Washington Yard N Street Gate' - Sequoia Park Anacostia River 295 N W E Good Hope Rd. Hope S GPO 926-765 Buty ur Delivery tabled [ca. 5/7/75 + Doll CB AGRICULTURE 700 regulatory actions, proceedings & decisions Commodity Credit Poultry Credit Pest Control COMMERCE form Tabor Patent Office 967-5869 Research by the National Bureau of Standards taken w/85% of Suite numbers JUSTICE Anti-Trust Entluer LABOR dat w/ Keen stuff- Husna ) storm been puched to Ark that doutso widiams Labor Standards Equal Pay will it be Develop - will call outs. upen to Judician TREASURY Sunior IRS & Customs wt TRANSPORTATION Automobile Safety net vas muke call Administrative burden hurt the consumer HUD Prevent HUD from getting confidential financial information from industry - Career HEW EPA Hughes Could possibly effect INTERIOR major departmental action every Pabli welfare r Coult thear for Tootcart was Paull GERALD FORD ELBRARA AGRICULTURE --- In Agriculture, the agency for Consumer Advocacy could have an impact on over 700 departmental regulatory action pro- ceedings and decisions - such as 1. Commodity credit decisions 2. Forrest services - timber sales 3. Poultry inspection 4. Pest control programs 5. Plant control programs COMMERCE -- Such an advocate could effect - Patent Office proceedings 1. Tariff decisions that effect trade 2. Research by the National Bureau of Standards EPA For EPA the advocate could have an impact on virtually every EPA activity. Russell Train advises us it would be difficult to find any EPA action which would not be subject to such an advocate. GERALD FORD LIBRARY 2 HEW --For HEW the advocate would be taking part in every health related decision and perhaps every other major action the Department takes. HUD For HUD there is a concern the advocate could be involved and form informal constituent industry groups and in effect perhaps prevent HUD from having the financial and other information from industry which they need to conduct the Department's business. INTERIOR --There is concern that the advocate would be a powerful special interest that could inter- vene in departmental activities. JUSTICE The Consumer Advocate could participate in decisions by the anti-trust division on whether or not to bring anti-trust action. LABOR --The advocate would be a new Party enforcement activity for labor standards. Equal pay and other enforcement decisions. FORD is LIBRAR, 0.18839 3 TRANSPORTATION Secretary Coleman points out that the advocate could have a serious effect on automobile safety and could impose an administrative burden that might actually harm the consumer. TREASURY The advocate could impose a tremendous burden such as intervening in IRS and Customs' decisions. GERALD R. FORD THE WHITE HOUSE wASHINGTON May 2, 1975 MEMORANDUM FOR: JIM CANNON FROM: JERRY H. off At a recent Cabinet meeting the suggestion was made that each of the Cabinet Officers should contact the Chairman and ranking member of their authorizing committee to point out the difficulties that would be created for their agencies in the event the Consumer Protection Agency is enacted into law. The basic thesis for doing this is that the Consumer Protection Agency would have a major say in thwarting the original intent of much of the legislation under which those agencies act. The legislation now pending before the Congress would cut into the jurisdictional responsibilities of other committees in the Congress. Would you please contact each agency head asking them what they have done to make their views known to their committee chairman and ranking member on this legislation. Please submit a report to the President on these contacts. Thank you. - Not yet done anything talled to Cougan AG. - Descries us us sen HRUSICA Sorthand + urp HOUSEU cupuyes Tyler m ubjution John Develop - Man T & n rut anilus as ~ constitute. of 4/30 was - Brui wake special efforts - 1 GERALD FORD LIBRARY Buts - No keep one on case 32UOH ЭТӀНИ Wraten State arer - is How MONNAD MI No call & - 005 HOD - THREE No 10 dos obsm BSW notteeggue adt galfoom tenids) taboot AJA redmem bloow nolios gablast Them bas namiladO two theye odi teloq edd jos Sunon ni we selone bluode than smollilo no Tol on to beis consumirms A noitostos of edi tadi el aldt gniob not sleeds oleed edT odd 10 doum to instal Isnigito odt ghitzewdt at YS8 TOLSON $ evad bloow won neitslsigel adT .Jos selongs seods daidw rebau noitsleigel edit otal tuo bloow adt stoled gaibneq sdt al asstimmos Todto to yedi tedw modi gaides band yonega does 1083000 easelq way bluoW bas namisdo settimmes visdt of award ewsiv visds exam of snob oved sit of aget 8 thridue 986919 sidt no redement gaidner seedt no insbiser9 .DOV >lassif myval of subst was - yourder? workship + ma w nept 1 w mund, - goes M yumpu FORD is LIBRARY GERALD ,Toph loings work ind - grow 05/11 ~ The Pan A wh , galwo mob So musing N P Mr. James Cannon THE WHITE HOUSE WASHINGTON May 6, 1975 MEMORANDUM FOR THE CABINET SUBJECT: Agenda for Meeting Wednesday, May 7, 1975 6:30 P.M. on board the Sequoia The President has approved the following agenda for the Cabinet Meeting on May 7th. Introduction The President Discussion of Congressional The President, Mr. Marsh Relations (1 hour) and Members of the Cabinet Vietnamese Refugees Secretary Schlesinger on the (10 minutes) present status of evacuees, Mr. Friedersdorf on Congressional attitudes, and The President Consumer Advocacy Agency Mr. Cannon (10 minutes) Crime Message The President (10 minutes) Status of the Energy Program Mr. Zarb (10 minutes) Water Quality Programs Mr. Train (10 minutes) Jone SECRETARY TO THE CABINET mr. Cannou [ca. 5/7/75 THE WHITE HOUSE WASHINGTON MEMORANDUM FOR: BILL SEIDMAN FROM: ROD HILLS SUBJECT: Meeting with Independent Regulatory Commissions Attached is the decision memo for the President on the meeting with the Independent Regulatory Commissions and key Members of Congress and the Executive. We have included suggested Congressional participants and an agenda for the suggested format of the session. Also included are draft remarks which the President might make. These will obviously need to be polished depending on the decisions concerning the format and agenda. Max Friedersdorf, Jim Cannon, and I will plan to check out the President's preliminary decision with the Hill leadership and key committee Chairmen. If we get a strong reaction from them, we might need to suggest modifications for the format or substance later on. Attachments THE WHITE HOUSE WASHINGTON MEMORANDUM FOR: THE PRESIDENT FROM: JIM CANNON ROD HILLS MAX FRIEDERSDORF JIM LYNN SUBJECT: Meeting with the Independent Regulatory Commissions and Con- gressional Representatives In your speech to the Chamber of Commerce on April 28, you stated that you would convene a meeting with all of the Commissioners of the ten major independent regulatory agencies and key Congressional and Administration repre- sentatives to discuss the need to foster greater com- petition in the public interest and to consider the inflationary effects of proposed new regulations. Because of the unique nature of the regulatory agencies, it is important that Congress be given a role in helping to set up and participate in the meeting. The discussion should be keyed to eliciting a voluntary effort from the regulatory Commissions to better evaluate and understand the economic impact of proposed regulations, to make improvements in consumer services, and to assure fair and expeditious hearings on regulatory matters. In light of the above, the format of the meeting will play an important role in its success. Attached for your information are a list of the Independent Regulatory Commissioners (Tab A) and a list of Congres- sional Committee and Subcommittee Chairmen and ranking minority members with regulatory oversight responsibilities (Tab B). Letters of invitation are now being prepared which will go out over your signature once the date and format have been decided. 2 Options Two basic options are available for the meeting format: 1. Address the assembled Commissioners and Con- gressmen in the East Room, and provide time afterward for back-up speeches by the Joint Leadership or their representatives. You could then ask for written responses and sug- gestions from the agencies. This agenda could be kept simple and your participation limited to the delivery of prepared remarks. Pro: This format would get your message across effectively in a controlled format. It would not require much of your time. Con: It might be resented as heavy handed by the Congress and the Commissioners. It would not be conducive to encouraging a voluntary regulatory reform effort, and it would not permit discussion and interchange. 2. Use the same format as the "Economists" pre-summit meeting held in the East Room last September. This would provide a seat at the table for the ten Chairmen of the regulatory commissions and selected Congressional and Administration spokesmen. The other Congressmen and Commissioners would be seated in the same room, but away from the table. You would open the discussion, which would be followed by remarks from preselected Congressmen and Com- mission Chairmen. An hour would then be allotted for an open discussion between the participants, but we feel that your presence throughout the entire session would help to promote the most cooperative interchange of ideas. A proposed agenda for this type of session is attached at Tab C, and draft remarks for your opening are included at Tab D. Pro: This approach provides the opportunity for the most open and potentially fruitful discussion and the exchange of views. It could be orchestrated to allow you some flexibility in the amount of time you wished to devote to the meeting. 3 Con: Would be some potential for visible disagreement and debate. Would require more of your time than Option 1. Based on your decision on the format and agenda for the meeting, we will meet individually with the House and Senate leadership, and selected Members ahead of time to solicit their views on the session. If we encounter strong opinions on the Hill, we might need to suggest some modifications to the format and agenda after these Congressional contacts. We will be following up with briefing papers on the Com- missions, your regulatory reform program, and suggested questions and answers once the date and format have been fixed. Decision Option 1 Option 2 See Me Independent Regulatory Agencies Membership Civil Aeronautics Board John Robson, Chairman G. Joseph Minetti Lee R. West Robert D. Timm Richard J. O'Melia Commodity Futures Trading Commission William T. Bagley, Chairman John Vernon Rainbolt II Read Patten Dunn, Jr. Gary Leonard Seevers Consumer Product Safety Commission Richard O. Simpson, Chairman Barbara H. Franklin Lawrence M. Kushner Constance E. Newman R. David Pittle Federal Communications Commission Richard E. Wiley, Chairman Robert E. Lee Benjamin L. Hooks Charlotte T. Reid Glen O. Robinson Abbott Washburn James H. Quello Federal Maritime Commission Helen Deligh Bentley, Chairman James V. Day Ashton C. Barrett George H. Hearn Clarence Morse 2 Federal Power Commission John N. Nassikas, Chairman William L. Springer Don S. Smith Federal Trade Commission Lewis A. Engman, Chairman Paul Rand Dixon Mayo J. Thompson M. Elizabeth Hanford Stephen A. Nye Interstate Commerce Commission George M. Stafford, Chairman Alfred T. MacFarland Kenneth H. Tuggle Rupert L. Murphy Virginia Mae Brown Willard Deason Dale W. Hardin Robert C. Gresham Robert J. Corber A. Daniel O'Neal Charles L. Clapp Nuclear Regulatory Commission William A. Anders, Chairman Victor Gilinski Richard T. Kennedy Edward A. Mason Marcus A. Rowden Securities and Exchange Commission Ray Garrett, Jr., Chairman Philip A. Loomis, Jr. John R. Evans A. A. Sommer, Jr. Irving M. Pollack SENATE MAJORITY LEADER - Mike Mansfield MINORITY LEADER - Hugh Scott OVERSIGHT COMMITTEES Agriculture & Forestry - - CFTC Herman E. Talmadge (Ga.) Robert Dole (Kan.) * Agriculture Production, Marketing, & Stabilization of Price Walter Huddleston (Ky.) Milton R. Young (N.D.) Banking, Housing and Urban Affairs - SEC William Proxmire (Wisc.) John G. Tower (Tex.) * Financial Institutions Thomas McIntyre (N.H.) John G. Tower (Tex.) Commerce Warren G. Magnuson (Wash.) James B. Pearson (Kan.) * Aviation . - CAB Howard W. Cannon (Nev.) James B. Pearson (Kans.) * Communications - FCC John O. Pastore (R.I.) Robert P. Griffin (Mich.) * Consumer - CPSC Frank E. Moss (Utah) James L. Buckley (N.Y.) * Merchant Marine - FMC Russell B. Long (La.) J. Glenn Beall Jr. (Md.) 2 * Surface Transportation - ICC Vance Hartke (Ind.) Lowell P. Weicker, Jr. (Conn.) * Oil & Gas Production & Distribution Adlai E. Stevenson (Ill.) Ted Stevens (Alaska) Government Operations Abraham A. Ribicoff (Conn.) Charles H. Percy (III.) Interior & Insular Affairs - FPC Henry M. Jackson (Wash.) Paul J. Fannin (Ariz.) * Minerals, Materials, & Fuels Lee Metcalf (Mont.) Paul J. Fannin (Ariz.) Judiciary -- FTC James O. Eastland (Miss.) Roman L. Hruska (Neb.) * Admin. Practices & Procurement Ed M. Kennedy (N.Y.) Strom Thurmond (S. C.) * Antitrust & Monopoly Phillip A. Hart (Mich. ) Roman L. Hruska (Neb.) Appropriations Committee John L. McClellan (Ark.) Milton R. Young (N.D.) * Agriculture and Related Agencies (CFTC) Gale McGee (Wyo.) Hiram L. Fong (Ha.) * HUD - - Independent Agencies (CPSC) William Proxmire (Wisc.) Charles McC. Mathias (Md.) 3 * Public Works (NRC, FPC) John Stennis (Miss.) Mark O. Hatfield (Ore.) * State, Justice, Commerce, the Judiciary (SEC, FMC, FCC, FTC) John O. Pastore (R.I.) Roman L. Hruska (Neb.) * Transportation (ICC, CAB) Birch Bayh (Ind.) Clifford P. Case (N.J.) HOUSE OF REPRESENTATIVES SPEAKER OF THE HOUSE - Carl Albert MINORITY LEADER - John Rhoads OVERSIGHT COMMITTEES Agriculture - CFTC Thomas S. Foley (Wash.) William C. Wampler (Va.) * Conservation and Credit Bob Bergland (Minn. ) Edward R. Madigan (Ill. ) Banking, Currency, and Housing - SEC Henry S. Reuss (Wis.) Albert W. Johnson (Pa.) * Financial Institutions Supervision, Reg. & Ins. Fernand J. St. Germain (R.I.) John H. Rousselot (Calif.) Government Operations Jack Brooks (Tex.) Frank Horton (N.Y.) Interior and Insular Affairs - FPC James A. Haley (Fla.) Joe Skubitz (Kans.) Merchant Marine & Fisheries - FMC Leonor Sullivan (Mo.) Philip E. Ruppe (Mich.) * Merchant Marine Thomas M. Downing (Va.) Paul N. McClosky Jr. (Calif.) 2 Interstate and Foreign Commerce Harley O. Staggers Samuel L. Devine * Communications - FCC Torbet H. Macdonald (Mass.) Louis Frey Jr. (Fla.) * Oversight & Investigations John E. Moss (Calif. ) James M. Collins (Tex.) * Energy & Power - FPC John D. Dingell (Mich.) Clarence J. Brown (Ohio) * Consumer Protection & Finance - CPSC & FTC Leonil Van Deerlin (Calif.) John Y. McCollister (Neb.) * Transportation & Commerce - ICC Fred B. Rooney (Pa.) Joe Skubitz (Kans.) Judiciary - FTC Peter W. Rodino (N.J.) Edward Hutchinson (Mich.) * Admin. Law & Gov't. Relations Walter Flowers (Ala.) Carlos J. Moorhead (Calif.) * Monopolies & Commercial Law Peter Rodino Ed Hutchinson Public Works and Transportation Robert E. Jones (Ala.) William H. Harsha (Ohio) * Aviation - CAB Glenn M. Anderson (Calif. ) Gene Snyder (Ky.) * Surface Transportation James J. Howard (N.J.) Bud Shuster (Pa.) 3 Joint Committee on Atomic Energy (NRC) John O. Pastore (R.I.) Melvin Price (Ill.) Appropriations Committee George H. Mahon (Tex.) Elford A. Cederberg (Mich.) * Agriculture and Related Agencies (CFTC) Jamie L. Whitten (Miss. ) Mark Andrews (N.D.) * HUD - Independent Agencies (CPSC) Edward P. Boland (Mass. ) Burt L. Talcott (Calif. ) * Public Works (NRC, FPC) Joe L. Evans (Tenn.) John T. Myers (Ind.) * State, Justice, Commerce and Judiciary (SEC, FMC, FTC, FCC) John M. Slack (W. Va. ) Elford A. Cederberg (Mich.) * Transportation (CAB, ICC) John J. McFall (Calif. ) Silvio O. Conte (Mass.) House Republican Task Force on Antitrust and Regulatory Reform Chairman: H. John Heinz, III AGENDA Meeting with Independent Regulatory Agencies 1. Lynn/Cannon (Introduce President) Brief 2. Presidential Key Note Address (Note: Outline of Presidential talking points attached, final remarks to be supplied) 10-15 mins. -- Purpose of the session. -- Role and Importance of the Regulatory Agencies. -- Nature of Joint Congressional/Executive Branch Oversight. -- Specific problems and considerations: Need to evaluate the economic impact of proposed regulations. Need to ensure that consumers and other interest groups receive a fair hearing. Need to act expeditiously when appropriate. Need to keep the public better informed of regulatory activities and their consequences. -- Brief summary of Presidential regulatory reform program including legislative and adminis- trative actions. 3. Congressional Remarks 20-30 mins. 4. Remarks by Selected Commission Chairmen 20 mins. For Example: Engman (FTC) Role of Competition Garrett (SEC) - Regulatory Modernization Wiley (FCC) - Administrative Improvements 2 5. Discussion among Chairmen, Congressional Spokesmen, and Executive Branch Representatives 1 hour 6. Summary and Closing Remarks Brief Suggested Talking Points for the President's Meeting with the Independent Regulatory Commissions I. Introduction- - Why I have asked for this meeting. There is a growing concern expressed by many Americans that government regulations have not changed as quickly as they should, in light of major changes in the structure and functioning of our economy. The most persistent concern arises from the belief that many regu- lations now cost the country as a whole more than they return in benefits and that the general public interest therefore becomes secondary to a particular special interest. In assembling this meeting of Independent Agency members and Congressional leaders, I do not mean to suggest that the problem resides exclusively in these agencies. Regulations that impose costs on consumers can be found in Cabinet Departments and in an intricate, sometimes invisible web of laws, ordinances, and regu- lations at the State and local levels. I feel that you and your Commissions--with unique powers and responsibilities--ca play a major role in documenting and cor- recting any such imbalances. Because I place a high premium on the openness of government, I want to review with you the steps I am taking. And I will ask for your help and the Congress' in identifying ways the Commissions may be most helpful in our collective efforts to restore the health and vitality of the American economy. As we look for short-term solutions, we must also chart a course that permanently relieves the economy of unnecessary impediments in the long term. II. Why the Independent Commissions are Important. Congress and the Presidency have given you extraordinary grants of authority. You function partially like the Executive, Legislative, and Judicial Branches of government. With unusual powers and responsi- bilities, you should function as models of good and open government. You should make every effort to pinpoint those areas in which economic realities today have overtaken circumstances which caused the government to create special remedies. You should be the leaders 2 in identifying areas where regulations are now obsolete and areas where we need to focus more attention. You should constantly strive to improve your abilities to identify all the costs of regulations in order to put before the American people the most well documented description of the potential costs and benefits of proposals. You should make sure that the quality of your economic analysis matches the same standards of legal professionalism which you strive to maintain. This involves a more open discussion of both (a) the economic costs of less com- petition than might otherwise exist absent some regulations and (b) the costs to society to comply with mandates which seek worthwhile goals. You should do everything you can to make sure that backlogs in reg- ulatory proceedings don't help destroy the public's belief in an equitable regulatory system. For example, many companies cannot make important capital investments, which generate employment and advancement oppor- tunities for thousands of Americans, without your cooperation. You should strive to give these applications a professional, but speedy, review. You have a special realtionship to Congress and the Executive. You should be aggressive in offering new ideas which legislatively and/or administra- tively will help both of us do a better job to obtain necessary changes in your authorizing statutes, to facilitate the necessary judicial review of your decisions, etc. III. What My Administration is Doing. I have a firm belief that the "hidden" costs that government imposes on private citizens should be uncovered. Everyone has a right to know what legislation and regulations are costing them, both in tax dollars and in higher prices. To help achieve this objective: (a) I have ordered all Departments and Agencies to analyze their major proposals with an Inflation Impact Statement. I am pleased the House has changed its rules to require similar analyses, and I note the Senate has several pieces of legisla- tion under review which would accomplish similar objectives. While there are differing legal views on whether your agencies are covered, I hope that you will adopt similar procedures. The most important objective is that all of us better understand the short and long-range economic consequences of our actions, and that you do your part to better fulfill your re- sponsibilities to Congress and the American people. 3 (b) I have asked all Departments and Agencies to re-examine their present procedures for assuring better consumer representation in their decisionmaking processes. I urge each of you to make additional efforts to include the general public (as well as the industries you regulate) in your hearings and other proceedings. Also, I would hope that you would make additional efforts to make understandable the nature of your actions so that the consumer can be an active informed participant in your deliberations. I also feel that government should only intrude in the free market when private concerns have proven their unwillingness to respond to legitimate public concerns or when inherent monopoly structures pre- vent a freely competitive market system from operating. Government should be attempting to foster rather than curtail competition, to give maximum freedom to private enterprise, consistent, of course, with our belief that government also has a continuing responsibility to pursue and prosecute those who are guilty of predatory pricing tactics, those who are guilty of fraud or deceit, and those who willfully neglect acceptable standards of health and safety conduct. Agencies engaged in regulatory activities can expect that the Attorney General, through the Antitrust Division, will continue to appear and participate in agency proceedings to represent the interests of compe- tition and thus, the interests of consumers in lower prices. Because of my strong conviction that the consumer is far more able to signal his wants and needs to business, (than the government is able to dictate what those needs should be) I have proposed, and will continue to sponsor legislation to relax or eliminate the Federal Government's control over areas where I believe the marketplace can do a better job. For example, the legislation I will be proposing would involve the government less in the setting of prices and would permit greater innovation by making it easier for new businesses to compete with existing firms and to remove barriers from existing firms to develop new services. We have or will be proposing legislation in such areas as energy, trans- portation, financial and securities institutions, and communications. I have asked the Congress for its cooperation in giving these bills an early hearing, and I ask for your support in achieving needed reforms. 4 My legislative program seeks to reinforce and strengthen those areas in which government intervention must continue to do a better job; e.g., to detect and penalize those guilty of antitrust violations- but it also calls for government regulators to allow the forces of competition to work as well. But no government agency can take the place of entrepre- neurial spirit which helps insure that innovative and cost-saving ideas are continually offered to the public. IV. Conclusion. This meeting is only the beginning: I want to start a dialogue today, and I want it to continue in the open, where Congress and the public can participate to the fullest extent. I want to encourage new ideas from everyone here. We have a big job ahead of us--that is to reach an agreement on a more clearly articulated set of roles and responsibilities for government regu- lation-whether it is spelied out in detailed statutes or administered with a. broad grant of authority to Commissions or other offices of the Executive Branch. We need a more open and candid discussion between Congress and the Executive on what constitute acceptable criteria for qualifications to serve as a regulatory commissioner or other Executive official with regulatory responsibilities. We need to examine our overlapping juris- dictions and decide on what groundrules we all interact, whether it involves budgetary decisions, legislative proposals, administrative changes, etc. To these ends, I ask each Commission Chairman here, as an individual American, and not just as the holder of a certain official position, to send to me and the Congress within the next three weeks, your personal views on those areas of government regulatory practices which you feel are most deserving of attention and reform. I hope that this meeting will begin a program of action and a new spirit of cooperation. THE WHITE HOUSE WASHINGTON May 7, 1975 MEMORANDUM TO: JIM CANNON FROM: PAM NEEDHAM KATHLEEN RYAN SUBJECT: Virginia Knauer's Proposed Consumer Plan Having reviewed Virginia Knauer's proposed plan to implement the President's consumer policies, we have several general observations: 1. Virginia continues to address her papers on this project to Bill Baroody and Jim Lynn, although the President has asked you to coordinate the program. 2. She is proposing a 5 month period in which to formu- late new department policies. Our impression is that we had something much shorter in mind. 3. She proposes to spend all of May and June in preparing, distributing, and analyzing questionnaires to Cabinet members. 4. Before the questionnaires are distributed a Domestic Council meeting is proposed with the President in attendance. Our recommendation is that such a meeting could be an inefficient use of these busy persons' time. 5. Her plan to publish the results of the questionnaire could cause a great deal of problems. 6. The meetings with individual Cabinet members would not begin until July and would continue into September. It is our recommendation that you call Virginia and tell her that the President attached some urgency to this project and that 5 months is too long. -2- Also, that you suggest she visit the Cabinet members imme- diately and also determine whether their earlier submissions to you could serve in place of a questionnaire. Another option, and one that will perhaps be necessary, is that you sit down with her yourself and go over her plans. THE WHITE HOUSE WASHINGTON Date May 7, 1975 TO: JIM CANNON FROM: JIM CAVANAUGH FYI For appropriate action COMMENTS The Strip Mining bill passed in the House this afternoon 293-115. (Last time - House vote was 333-86) THE WHITE HOUSE WASHINGTON May 6, 1975 CABINET MEETING Wednesday, May 7, 1975 6:30 p.m. The Sequoia From: James E. Connor JR I. BACKGROUND, PARTICIPANTS & PRESS PLAN 1. Background: You last met with the Cabinet on April 29th when the agenda was devoted entirely to the Vietnam evacuation. 2. Participants: Attached at Tab A 3. Press Plan: Press Photo Opportunity at Dock; David Kennerly Photo. II. TALKING POINTS 1. This is my first visit to the Sequoia since I became President. I'm delighted that I can share that experience with my Cabinet. 2. I know that some of you will have to leave us in midstream to keep some diplomatic commitments. 3. The rest of us I think should take advantage of the setting and the fact that we're not pressed by time to explore a number of questions in some depth. 4. Let's start with an area we are all concerned with- The Congress. Last January Jack Marsh gave us a very helpful briefing on the new Congress and how it promised to shape up. I'd like Jack to give us a review now on the basis of the last four months of experience. Jack, - 2 - 5. Most of you have now had some contact with the Congress. I'd like to hear from each of you on what your experience has been and on how you assess the next several months. Nelson, let's start with you Henry (Kissinger) Jim (Schlesinger) Ed (Levi) Earl (Butz) John (Dunlop) Carla (Hills) Bill (Coleman) Steve (Gardner) John (Tabor) Fred (Dent) Jim (Lynn) Alan (Greenspan) Frank (Zarb) Russ (Train) 6. We will be confronted over the next few weeks and few months with many pieces of objectionable legislation that could easily result in a string of very difficult vetoes. Some of these vetoes will be based on philosophical or policy grounds, but most will be objectionable because of their damaging impact on the budget. In many cases our veto strategy will not be to block the enactment of legislation, but to cause the Congress to make legislation more acceptable either because of threat of veto, or because it has been successfully vetoed. If we can establish a beachhead early on, using the veto to demonstrate strength, we may not have to use it as frequently in the future. We have taken a firm stand to hold the deficit line at $60 billion for FY '76 and both Houses of Congress have passed budget limits substantially over this figure. In all likelihood it may not be possible to sustain a veto on every one of these issues, but I do not believe that we can let these facts deter us in opposing these expensive spending programs. Each of them will be attractive to a particular segment of the public and subject to much political posturing by their supporters in Congress. - 3 - However attractive these individual proposals may be, our best approach is to attempt to keep the focus of attention on their overall impact on our efforts to keep the budget and deficit within reason. Therefore, it is imperative in your appearance before Congressional committees, before audiences around the country, and in your press statements to emphasize that we recognize individual needs in each of these areas and are willing to accommodate them within sensible limits, however to spend way beyond our means in all of these areas will result in the strong possibility that the economic damage to all Americans will be extreme. The great advantage we have is that the Administration can speak with one view, whereas the Congress is badly divided and fragmented both along party lines and on issues. The departments are not independent but are interrelated, and frequently other Cabinet heads and members of the Subcabinet can offer great assistance to other departments in the legislative process. This assistance should be both sought and given in order to have a cooperative, concerted action on the Hill. Department heads should communicate frequently, not just with the White House, but also with other Departments to exchange information and develop concerted efforts. The base of any vote for legislation, or to sustain any veto, is with the Republicans in the House and the Senate. You and your chief officers should be in constant communication with the Republican leadership, and this should not wait until you have a piece of legislation on the floor. The first third of this session has nearly passed. Prior to the Memorial Day recess every Cabinet officer and Subcabinet Officer should see that a personal contact has been made with the Members of your jurisdictional Committees, Republicans and Democrats. This should be a courtesy call to see where things stand and ascertain what is on the Member's mind. If every department of government would do this, it would assure that each Member of the House and Senate has had a personal call by a Senior Official of the Administration. It is vital that you increase the tempo of Congressional visitation both on the Hill and by invitation to your Department. In these - 4 - meetings the program of your Department should be stressed, and the key issues of the Administration should be explained. Point out why we must hold the line on federal spending. Finally, you may encounter arguments that the way to hold down spending is to cut the Defense Budget. This argument must be resisted by all Cabinet Officials. This critical period in which we live, and especially when other nations look to American determination, makes it essential that we maintain our strength in order to maintain our credibility. Let us work for the best possible version of these bills, but let us all work together to keep the cost within the goals that we have set for ourselves. 7. I 'd like Jim Schlesinger and Max Friedersdorf to bring us up to date on the status of the evacuees and the Congressional reaction. Jim, Max, 8. We have a moral obligation to help these refugees resettle and begin new lives in the United States. They fled from South Vietnam for two reasons: They feared that they would be killed if they stayed and they did not want to live under a Communist system of government. By helping these refugees, many of whom fled their native land with nothing but the clothes on their backs and a few small parcels, we are living up to our heritage as a charitable and compassionate people. I have spoken out strongly on this issue because I believe strongly that we must do the right thing morally. We are a nation of immigrants, and I believe the inscription on the Statue of Libery, which enunciates our finest qualities as a people should be our guidepost in this tragic situation. The maximum number of refugees expected is 150,000 at the most, and it probably will be less. Sixty percent of that number are children, the innocent victims of this war who deserve a chance to live their life in freedom and will certainly not be taking anyone's job away. Only 35, 000 refugees are heads of households who will be looking for jobs; but many of these have skills which will enable them to find employment. The number of job seekers is a tiny fraction of 1% of the labor force in the U.S. Even without the - 5 - Vietnamese refugees, the U. S. has been opening its doors to 400, 000 immigrants a year without any impact on the job market. Since the end of World War II, almost 1, 400, 000 refugees from Europe, Asia, Hungary and Cuba have fled oppression and sought freedom in the United States. They have made a rich contribution to our culture and our economy, and we expect the Vietnamese will do the same. Many of the Vietnamese refugees coming here have close relatives or sponsors in the United States, so they will be no burden to the government. Ambassador Brown's office at the State Department is using a computer to match up the refugees' job skills with the available jobs. The resettlement program is being carried out in such a way that the refugees will be spread throughout the country without a heavy concentration in any one area. We are working with other countries to resettle perhaps as many as 20, 000 of the refugees outside the United States. Canada is welcoming some. Some French-speaking countries in Africa have indicated that they will take some. I want to emphasize one point. It is my intention that none of the aid money I am requesting from Congress will be spent by the United States Government to help the Communists of North and South Vietnam. I believe it is the responsibility of the nations which sent weapons of war to the Communists to come forward now to repair the damage. Let me emphasize once more my deep moral commitment to help these refugees resettle and begin new lives in the United States. Despite the opposition of a few, I believe the majority of the American people want to live up to the finest traditions of our history and welcome these new immigrants as we have welcomed so many immigrants to our bountiful land in the past. We will be a better country and a better people for doing it. I hope in your speeches and public appearances you will support my position on the refugee situation. 9. The Congress has moved closer to a decision on the Consumer Advocacy Agency. Jim Cannon will brief us on the situation. Jim - 6 - I am disappointed that we have not had a greater response from the Departments with reference to the Consumer Agency legislation. I am very strongly against it, and I think each of you if you would spend the time to look at the bill, would be equally against it. I want to make very sure that in the days and weeks ahead you do take the time to understand how this bill can upset the operations of your departments and convey this feeling to the appropriate Congressional members. 11. In my speech to the Yale Law School last week, I set forth the basic theme of a Crime Message. In preparing the message I want you to follow the lead of that speech and flesh it out, but I do not want it to be narrow or technical. The message on this subject is of so much direct concern to the daily lives of the people that it must be clear and understandable to the public as well as to the Congress and the legal fraternity. The chief theme is concern for the victim, for insuring domestic tranquility--we have a responsibility to try to provide safety in the streets and in our homes. The emphasis should be on protection of the victims--the poor, the disadvantaged minorities, the old, the very young--those who are least able to provide for their own safety. The kind of crime that should be our chief target is the kind that is on the minds of most people-- muggings, robberies, murders, assaults, rapes, breakins, hold-ups--the kind of crime that is having the most disruptive effects politically and socially. The central recommendation should be swift and sure punishment upon conviction for a serious crime. When I say emphasis I do not mean that other matters should be excluded or that they are not important. Rehabilitation programs should not be abandoned, but there are grounds for doubting that they work. We must re-think rehabilitation efforts, study the research already done, and try to understand the consequences. I do not want the message to suggest that we are relying on rehabilitation programs for reducing violent crime. - 7 - The experience of the last 15 years should make us reluctant to boast that we, or anyone, know how to eliminate crime. We have spent billions, and crime has gone up. The tone of this message should be modest in any claims that are made. But we should be very firm on one point: mandatory sentencing for serious crimes committed by persons with prior criminal records. A small percentage of repeaters accounts for a large proportion of violent crime: The present version of the Senate Bill permits almost total flexibility in penalties; it allows a judge to give no sentence to a convicted robber, for example, or to sentence him. A convicted robber should definitely go to prison, but 15 years may be too long a sentence, except for unusual circumstances. The crime message must look into the question of upgrading prisons and making them more manageable. Of course, the kind of crime I am speaking of is more a concern of state and local jurisdictions than of the federal government, but I want the Administration to assume fully, and without excuses, our share of the responsibility. Organized crime is a federal responsibility and must be discussed, but I want the emphasis on street crime, and not on so-called "suite crime." There is a tendency to link the economic situation and crime--for instance, to argue that unemployment causes crime, and that the way to reduce crime is to eliminate unemployment. I have doubts about that line of reasoning. It may be true that crime goes up when unemployment goes up, but crime has also gone up when unemployment has gone down. In this message I do not want to see the argument that we can deal with crime only by eliminating so called root causes. It is important to deal with unemployment for its own sake. The connection with the crime problem confuses both issues. 12. Frank Zarb will give us an update on the energy legislation. Frank, 13. Russ Train suggested that a trip on the Potomac might be a good place to discuss the water quality program. Russ Revised 9:45 5/7/75 Attendees for Cabinet Meeting, Wednesday, May 7, 1975, 6:30 p.m. on board the Sequoia The President The Vice President The Secretary of Defense, James R. Schlesinger The Attorney General, Edward H. Levi the Secretary of Agriculture, Earl L. Butz The Secretary of Labor, John T. Dunlop The Secretary of Housing and Urban Development, Carla A. Hills The Secretary of Transportation, William T. Coleman The Deputy Secretary of State, Robert S. Ingersoll (For Secretary Kissinger who has another commitment) The Deputy Secretary of the Treasury, Stephen S. Gardner (for Secretary Simon who has a commitment on the Hill) The Under Secretary of Commerce, John K. Tabor (for Secretary Morton, who will be out of the country) The Counsel to the President, Philip W. Buchen The Special Representative for Trade Negotiations, Frederick B. Dent The Counsellor to the President, Robert T. Hartmann The Director of the Office of Management and Budget, James T. Lynn The Counsellor to the President, John O. Marsh, Jr. The Assistant to the President, Donald H. Rumsfeld The U. S. Representative to the United Nations, John A. Scali William Baroody, Assistant to the President (Public Liaison) James Cannon, Assistant to the President (Executive Director, Domestic Council) Richard Cheney, Deputy Assistant to the President James Connor, Secretary to the Cabinet Max Friedersdorf, Assistant to the President (Legislative Affairs) Alan Greenspan, Chairman, Council of Economic Advisers Ronald Nessen, Press Secretary to the President General Brent Scowcroft, Deputy Assistant to the President (National Security Affairs) L. William Seidman, Assistant to the President (Executive Director, Economic Policy Board) William Greener, Deputy Press Secretary to the President Mary Louise Smith, Chairman, Republican National Committee Russell Train, Administrator, Environmental Protection Agency Frank Zarb, Administrator, Federal Energy Agency [Also attending for this meeting will be the Personal Physician to the President, Dr. William Lukash; David H. Kennerly; and Terry O'Donnell] Note: There will be no representative from the Departments of the Interior and HEW; Secretary Weinberger of HEW will be out of the country, and there is no incumbent Deputy; the Secretaryship of Interior is vacant pending Gov. Hathaway's confirmation by the Senate, and there is no incumbent Deputy. JAMES M. CANNON May 7, 1975 DRAFT Notes from Conversation with Bill Kendall SUBJECT: Consumer weiker Advocacy Senator has comments from 38 Senators who will support the elimination of the labor exemption. More may be forthcoming. Senator Dole will propose a ammendment to make the date effective in 1977 or 1978. Dole will also make a proposal to eliminate expenditures to one million a year for each ' of the first three years. FORD is LIBRARY GERALD THE WHITE HOUSE WASHINGTON May 7, 1975 TALKING POINTS 1. At the last Cabinet Meeting - April 16 the President requested - a) Meeting with Virginia Knauer b) Call appropriate Congressional Committee Chairmen and ranking Minority Members 2. Dr. Connor and I are working together on a memo April 25, 1975 3. Within the last 48 hours - calls have been made to each Cabinet official 4. Secretary Butz talked to Senators Talmadge and Senator Dole Attorney General Levi talked to Senators Eastland and Hruska - refer to Judiciary 5. John Tabor at Commerce said they had talked with 85% of Senate members. 6. Secretary Dunlop reported to me that he had met with Senators Williams and Senator Javits. 7. Secretary Hills - 8. Secretary Simon - 9. Secretary Coleman - 10. Steve Kursman for Secretary Weinberger - Talked with 4 key Senators. Thinks he may have persuaded Senator Bell to reexamine his position. - 2 - Roy Hughes INTERIOR - EPA - APPROACH Eliminate Labor exemption 38 votes Effective 77-78 Dole- 1 million yearly. Virginia Knauer has telephoned all Cabinet officers for appointments and is working with OMB to draft a questionnaire to assist her in getting the necessary information she will need to develop a departmental consumer plan. [5/7/75] Calonit - cap / form Dulor & mator (N down Tabur _)1 on with was Education the next mule is thes manny many peach into Down porkets early in much (Not Thenky An) (for Dulop A 1 him $1 Duham - leursh do office for where ty at Jul Waggover Lewi - must teching on CT un FORD << Control - when + P- - wenterns are' much personal provery VI Gorerntal privacy l for Expedito NEW of crem or Consument asmila ) FORD HIBRARY