Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Scholar Source Context
Document identity
localId
66330352
label
President's Weekly Update 03/28/1988
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
66330352
sourceUrl
contentType
document
title
President's Weekly Update 03/28/1988
citationUrl
collections
Records of the Office of the Chief of Staff (Reagan Administration)
Howard Baker's Subject Files
thumbnailUrl
largeImageUrl
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
66330352
coverageEndDate
logicalDate
1988-12-31
year
1988
coverageStartDate
logicalDate
1987-01-01
year
1987
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
17a935d1e1f01946
ocrText
Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual
collections.
Collection: Baker, Howard H. Jr.: Files
Folder Title: President's Weekly Update
03/28/1988
Box: 4
To see more digitized collections visit:
https://reaganlibrary.gov/archives/digital-library
To see all Ronald Reagan Presidential Library
inventories visit:
https://reaganlibrary.gov/document-collection
Contact a reference archivist at:
[email protected]
Citation Guidelines: https://reaganlibrary.gov/citing
Prepared: March 25, 1988
For Discussion on:
----
PRESIDENT'S WEEKLY UPDATE
OF
PRES PR THE OF ASIA STATE STATE THE UNITED U.S.A
Howard H. Baker, Jr.
THE WHITE HOUSE
WASHINGTON
March 25, 1988
THE PRESIDENT'S SUMMARY SCHEDULE
The Week of March 28, 1988
Monday, March 28
11:30 am
Meeting with CIA Director Webster
Powell
(15 min)
12:45 pm
Depart for Visit to
Range
(60 min)
Reynolds Metals Plant
5:10 pm
Return to the White House
Tuesday, March 29
9:30 am
Meeting with Republican
Kranowitz
(60 min)
Congressional Leadership
11:00 am
Briefing for Interview
Board
(15 min)
11:15 am
Interview with Gannett
Board
(10 min)
Foundation Fellows
12:00 m
Lunch with George Will
Ryan
(60 min)
1:45 pm
N
Presentation of Cancer Courage Award
Range
(10 min)
1:55 pm
Signing Ceremony for "Education
Range
(5 min)
Day, U.S.A. " Proclamation
2:00 pm
NSPG Meeting
Powell
(60 min)
4:00 pm
Interview with Edmund Morris
Ryan
(30 min)
4:30 pm
Congressional Meeting on Space/
Kranowitz
(30 min)
Science and Technology
Wednesday, March 30
11:00 am
Meeting with Supporters of
Risque
(10 min)
the Superconducting Super
Collider Program
11:45 am
Swearing-in of William Ball
Risque
(10 min)
as Secretary of the Navy
1:30 pm
Meeting with Secretary Shultz
(30 min)
2:00 pm
Briefing for Interview
Ryan
(15 min)
2:15 pm
Interview for Documentary
Ryan
(60 min)
6:30 pm
Private Dinner
Tuck
Thursday, March 31
11:30 am
Personnel Time
Tuttle
(30 min)
12:00 m
Lunch with the Vice President
(60 min)
1:30 pm
Kickoff of the Baldridge
Risque
(10 min)
Quality Awards Program
2:00 pm
Cabinet Meeting
Risque
(60 min)
3:50 pm
Photo with Political
Donatelli
(5 min)
Affairs Office Staff
4:00 pm
Administrative Time
(30 min)
1. Photo with Pat Ingoglia and
Family (Ryan)
2. Photo with John Parmalee of D. C.
"School Without Walls" (Blakey)
3. Photo with Representatives of the
White House Athletic Center (Fitzwater)
4:30 pm
Haircut
(30 min)
5:00 pm
Taping Session
Dolan/Board
(30 min)
1. Millenium of Christianity in
Kiev Rus' (Powell)
2. "Washington for Jesus Rally" (Range)
3. Annual USU Surgical Associates Day
(Hutton)
4. Conference of Distributive Education
Clubs (Board)
5. National Operation C.A.R.E. Conference
(Board)
Friday, April 1
Good Friday
Approx.
Depart for the Ranch
Hooley
10:15 am
Approx.
Arrive Ranch
1:30 pm
N
ON Ranch
Saturday, April 2
N
Ranch
9:06 pm
Radio Talk
(5 min)
N
ON Ranch
Sunday, April 3
Easter Sunday
N
Ranch
N
ON Ranch
The President's Schedule
MARCH 1988
Issue: 03/25/88
4:00 p.m.
SUNDAY
MONDAY
TUESDAY
WEDNESDAY
THURSDAY
FRIDAY
SATURDAY
1
2
3
4 Reagan's Anniversary
5
Proposed & Tentative
8:25 Depart.
Senate Recess
For Administrative Use
Remarks
Brussels
*
Brussels
Only
8:30 Depart for
Brussels f/
NATO Summit
12:06 Radio Talk
T Tentative
9:45 Arrive Brussels
1:30 Photo with
N First Lady
3:45 Depart for DC
Mexican Deleg.
Away from White
to Mexico/USIP
House
Conf.
6:15 Arrive WH
ON BRUSSELS
ON BRUSSELS
ON WASHINGTON D.C.
ON WASHINGTON D.C
ON WASHINGTON
6
7
8
9
10
11
12
10:10
Address VFW
11:00
Mtg. w/PM Wu
10:00 Brfg f/Intv.
N*
Camp David
1:30 Address Media
Xueqian/China
10:20 Depart. f/Notre
10:30
Intv. Foreign
T
11:00 NSC Time
Executives re:
12:00
Lunch w/Laxalt
Dame Univ. f/
TV Correspond.
1:15
Photo/U.S.
tribute to
2:30
NSPG Mtg
Drug Abuse
1:15 Address
12:06 Radio Talk
2:00 Mtg. with
Olympic Team
3:45
Photo w/Alec
2:00
US Olmp. Team
Knute Rockne
Courtelis
Coalition on
Wirthlin
2:15
Cabinet Mtg.
3:50
Photo w/Ofc.
Trade
3:30
Mtg. w/Shultz
3:50
Photo w/US
Pol. Dev.
1:30 Mtg. with Secy.
4:15
Personnel Time
Savings League
3:35 Arrive WH
4:00
Personnel Time
Shultz
4:30
H-Hold
4:00
Taping Session
4:30
Admin. Time
N
5:00 Recep f/Media
4:30
Mtg w/Natl.
N
7:10
Dnr. f/RR Pres.
N*
To Camp David
Execs
Jewish Coal.
Fndn. (B-Tie)
ON WASHINGTON. D.C.
ON WASHINGTON. D.C
ON WASHINGTON. D.C.
ON WASHINGTON, D.C.
ON WASHINGTON. D.C
ON CAMP DAVID
ON CAMP DAVID
13
14 Senate Reconvenes
15
16
17
St. Patrick's Day
18
19
9:50 Mtg w/D.M.
10:00 Bi-Part Cong
10:00 Receive
10:55 Receive Rept.
N*
Camp David
Woerner of
11:30 Brfg. f/PM Club
11:00 Brfg. f/Visit
Shamrocks
Privatization
West Germany
1:30 Photo w/Swed-
11:30 Mtg. w/PM
from Irish Amb.
11:00
Brf f/int
10:40 Depart to
Amer Chamb
Shamir of Israel
12:00
Lunch w/James
11:30 Int w/Fitchett
12:06 Radio Talk
Address IFPA
of Commerce
12:15
Lunch w/PM
Kilpatrick
of Paris Herald
N
Aft. Return to WH
Recep.
1:45
Photo w/Chmn.
Shamir
1:20
Dep f/Speaker
Tribune
11:45 Arrive WH
Phys Fit Council
1:30 Depart. Stmts.
Wright lunch
12:00 Lunch w/VP
12:00 Issues Lunch
4:00
Mtg. w/Shultz
2:00 Mtg. w/J.
3:50
Photo w/PSI
1:30 Secy. Shultz
2:00 Mtg. w/Carlucci
4:30
Cong Photo Tm
Stewart
4:00 Personnel Time
2:00 Photo w/
4:00 Hold Dent
7:35
Dep f/Dropby
4:30 Admin. Time
Young Rep.
Inner Circle Dnr
5:00 Cong Recept.
Natl Fed
ON WASHINGTON, D.C.
ON WASHINGTON, D.C
ON WASHINGTON, D.C.
ON WASHINGTON, D.C.
ON WASHINGTON, D.C
ON WASHINGTON, D.C
ON WASHINGTON, D.C
20
I
21
22
23
24
25
26
11:50 Photo w/
9:00
Dep. f/Mtg w/
10:00 Mtg. w/former
9:45 Mtg. w/West
11:00 Brfg f/Visit
Advance Office
House GOP
Pres. Chun Doo
German Opp.
11:30 Mtg. w/Pres.
12:00 Issues Lunch
11:45
Dropby Brfg.
Hwan of Korea
Ldr. Vogel
Balaguer of
12:06 Radio Talk
1:30
Sign Cere
Rep. Elect Off
11:00 Dropby Brfg.
12:00 Lunch w/ VP
Dominican Rep
f/Afghan Day
2:00
Photo f/" Def.
f/Amer Bus.
12:15
Lunch w/Pres.
Daily
11:15
Brfg. f/Mtg.
1:05 Depart f/
1:30 Dep Stmts
N*
7:00
Dept. for
3:45 Mtg. w/Deleg.
4:15
Pres Ardanza
11:30
Mtg. w/F.M.
Oakton HS, VA
2:15
Photo re Greek
Gridiron
to El Salvador
Basque
Shevardnadze
3:50
Photo NSC Sen
Indep Day
Dinner
Elections
4:30
Dipl. Cred. Cere
11:40
Mtg. w/F.M.
4:00 Personnel Time
2:30
Address Ctr
(White-Tie)
4:00 H-Hold
5:35
Dropby Recep.
12:15 Lunch w/F.M.
4:30 Admin. Time
f/Study of Pres
4:30 Taping Session
f/Sen Hecht
1:30 Mtg. w/Shultz
2:45 Mtg. Shultz
N 11:55 Arrive WH
ON WASHINGTON, D.C.
ON WASHINGTON, D.C
ON WASHINGTON, D.C.
ON WASHINGTON, D.C.
ON WASHINGTON, D.C
ON WASHINGTON, D.C.
ON WASHINGTON, D.C.
27
Palm Sunday
28
29
30
31 Congress Recess
9:30 GOP Cong.
11:00 Mtg.
11:30 Mtg w/Webster
11:00 Brfg. f/Int
w/Supporters
11:30 Personnel Time
11:15 Int. w/ Gannett
of SSC Program
12:00 Lunch with VP
12:45 Depart for
12:00 Lunch/Will
11:45
Swear-in Cere.
1:30 Kickoff
Richmond, VA
N
1:45 Cancer Cour.
f/Will Ball
Baldrige Qual.
to the Reynolds
1:55
Sign Cere f/Ed.
1:30
Mtg. with Secy
Awards Proa
Metals Plant
Day USA
Shultz
2:00 Cabinet Mtg
2:00
NSPG Mtg.
2:15
Intv.
3:50 Photo w/Pol.
5:10 Arrive WH
4:00 Intv w/Morris
f/Documentary
Affairs Office
4:00 Admin. Time
4:30 Cong. Mtg re
Eve. Pvt. Dinner
4:30 Haircut
Space/Science
5:00 Taping Session
ON WASHINGTON. D.C
ON WASHINGTON. D.C
ON WASHINGTON. D.C
ON WASHINGTON. D.C.
ON WASHINGTON
SENSITIVE no NOT
The President's Schedule
APRIL 1988
Issue: 03/25/88
4:00 p.m.
SUNDAY
MONDAY
TUESDAY
WEDNESDAY
THURSDAY
FRIDAY
SATURDAY
1
Good Friday
2
Passover
Proposed & Tentative
For Administrative Use
Approx
N*
Ranch
Only
* 10:15 Depart for
Ranch
*
9:06 Radio Talk
T Tentative
N First Lady
Approx
* Away from White
*
1:30 Arrive Ranch
House
ON RANCH
ON RANCH
3
Easter Sunday
4
5
6
7
8
9
Approx
N*
Ranch
N*
10:00
Depart for
N*
Ranch
N*
Ranch
N*
Ranch
N*
Ranch
N*
Ranch
Coto de Casa,
CA
9:06 Radio Talk
N*
11:45
Luncheon
f/Ronald
Reagan Library
Foundation
Approx
N*
1:45
Depart for
Ranch
ON RANCH
ON RANCH
ON RANCH
ON RANCH
ON RANCH
ON RANCH
ON RANCH
10
11 Congress Reconvenes
12
13
14
15
16
N*
Ranch
T
10:30
Bi-Part Cong.
10:00 Photo Ciriaco
T 11:00 NSC Time
TN
Camp David
Approx
Leadership
11:00 Mtg. w/Young
De Mita of Italy
12:00 Lunch f/Vote
N*
8:45
Depart f/ Las
12:00 Issues Lunch
11:30 Mtg. w/
President's Org
11:30
Mtg w/State
America
Vegas to
1:45
Photo w/1988
Conservative
11:30
Mtg. w/ PM Lee
Chrm of
1:30 Dropby Brfg.
12:06 Radio Talk
Address Natl.
Natl Teacher
Leaders
Kuan Yew of
President's Dnr
f/Natl Conf. of
Assoc. of
of Yr
Singapore
12:00 Lunch with VP
Lt. Governors
Broadcasters
T
2:00 NSC Time
12:00 Lunch w/PM
T
2:00 Cabinet Time
1:45 Mtg. w/Secy.
Approx
4:30 H-Hold
Yew
3:50
Photo w/Press
Shultz
N* 11:30
Depart for DC
N
7:30
Dinner f/King &
N
5:30 Reception f/
Approx
Ofc.
2:15 Taping Session
Approx
Queen of
PBS
*
1:30 Address ASNE
4:00 Personnel Time
TN
To Camp David
N
6:50 Arrive WH
Sweden (B-Tie)
Convention
4:30 Admin. Time
ON WASHINGTON, D.C.
ON WASHINGTON, D.C
ON WASHINGTON, D.C.
ON WASHINGTON, D.C.
ON WASHINGTON, D.C
ON CAMP DAVID
ON CAMP DAVID
17
1
18 Natl. Volunteer Wk.
19
20
21
22
23
(4/18 4/24)
T
9:30 GOP Cong. Ldrs
9:50 Mtg. & Photo
TN
Camp David
TN
Camp David
N*
11:00
Mem. Serv. for
11:45 Signing Cere.
w/FM Savetsila
11:00 Cere f/Natl.
Drug Law
f/Law Day Proc.
of Thailand
Vol. Wk.
Enforce. Ofcrs.
HOLD FOR TRAVEL
T
11:00
NSC Time
* 12:06 Radio Talk
12:00 Lunch
T
2:00
NSC Time
1:00 Intv. w/G.
1:15 Droby Brfg.
TN Aft. Return to WH
w/Western
4:30
Photo w/Agric.
Hodgson
f/ALEC
State GOP
Lead. Program
1:30 Mtg. with Secy
T
2:00
Cabinet Time
*
7:30
Dropby Recep.
Shultz
N* 7:30 Attend WH
1:30 Mtg. with Secy.
4:15
Photo w/First
f/P. Dawkins
Correspon-
Shultz
Lady's Office
*
8:15
Dropby Elec.
dents Dinner
Ind. Assoc. Dnr.
(B-Tie)
TN
To Camp David
ON WASHINGTON, D.C.
ON WASHINGTON, D.C
ON WASHINGTON, D.C.
ON WASHINGTON, D.C.
ON WASHINGTON, D.C
ON CAMP DAVID
24
25
26
27
28
29
Senate Recess
30
T
9:30 Bi-Part Cong.
9:30 Brfg f/Visit
TN
Camp David
TN
Camp David
11:45 Mtg. re
Leadership
N
10:00 Arv. Cere f/PM
10:30 Hold
Millenium of
Mulroney of
T 11:00 NSC Time
Christianity
Canada
T 2:00 Cabinet Time
*
12:06 Radio Talk
12:00 Issues Lunch
10:30 Mtg. with PM
TN
Aft
Return to WH
2.00 Receive Nation
Mulroney
4:00 Personnel Time
1:30 Mtg with Secy.
T
2:00 Cabinet Time
at Risk Report
1:30 Mtg. with Secy
4:30 Admin. Time
Shultz
4:30 H-Hold
4:30 Taping Session
Shultz
N 5:00 Presentation of
N
5:00 In Performance
Cong Medal to
TN
To Camp David
at the WH
N* 6:00 Dropby Recept
N
7:15 State Dinner
Lady Bird
f/Blair House
(B-Tie)
Johnson
ON WASHINGTON D.C.
ON WASHINGTON D.C
ON WASHINGTON. D.C.
ON WASHINGTON. D.C.
ON WASHINGTON, D.C
ON CAMP DAVID
ON CAMP DAVID
SENSITIVE - DO NOT COPY
THE WHITE HOUSE
WASHINGTON
THE WEEK AHEAD
Monday, March 28
through
Sunday, April 3
FOREIGN
Nicaragua
The media will continue to push for a definitive Administration
view of the various aspects of the agreement signed by the
Nicaraguan freedom fighters and the Sandinistas. In addition,
there will be heightened speculation concerning the type of aid
package the Administration will favor, with the focus on the
possibilities of a lethal component, methods of delivery and the
timetable for a vote. We continue to stress our consultations
with the freedom fighters concerning their views of the
agreement's points and those with the Hill concerning an aid
package. We have no preconceived ideas on either count and must
await the outcomes of the consultative process.
DOMESTIC
Trade will dominate the domestic news this week as the
conferences on the Hill head toward a self-imposed April 1
deadline for finishing their work. While there is doubt that the
conferences will complete that work on time, the bigger issues
of the trade bill should be discussed this week.
Trade will be highlighted Monday when the President travels to
Richmond, Virginia, for a visit to the Reynolds Metal Plant.
Economic Indicators
Friday, April 1
Unemployment
TOP STORIES OF THE WEEK
Monday, March 28
--
Meeting with the Director of Central Intelligence
-- Visit to Reynolds Metals Plant
Tuesday, March 29
--
Meeting with Republican Congressional Leadership
--
Interview with Gannett Foundation Fellows
-- Lunch with George Will
-- Presentation of Cancer Courage Award
--
Signing Ceremony for "Education Day, U.S.A." Proclamation
--
NSPG Meeting
--
Congressional Meeting on Space/Science and Technology
Wednesday, March 30
--
Meeting with Supporters of the Superconducting Super
Collider Program
--
Swearing-in of William Ball as Secretary of the Navy
--
Meeting with Secretary Shultz
--
Private Dinner
Thursday, March 31
--
Kickoff of the Baldrige Quality Awards Program
--
Cabinet Time
--
Photo with John Parmalee of D.C. "Schools without Walls"
Friday, April 1
--
Departure for California
Saturday, April 2
--
Radio Address
Prepared by: The Office of the Press Secretary
THE WHITE HOUSE
WASHINGTON
March 25, 1988
MEMORANDUM FOR THE PRESIDENT
FROM:
NANCY J. RISQUE
SUBJECT:
Cabinet Issues -- Weekly Update
I. MEETINGS WITH YOU
There will be a Cabiret meeting on Thursday, March 31, to
update your Cabinet on pending issues, including U.S.-
Soviet relations, Central America, and possibly trade
legislation, before you leave for the ranch. Frank Donatelli
will also present a briefing on the Administration's goals
for 1988 as they affect and are affected by the political
climate.
II. MEETINGS WITHOUT YOU
If the conferees on the trade bill conclude their work, the
Economic Policy Council will meet to review the outcome.
III. OTHER ISSUES
Hunger Hype
Advocacy groups are trying to make an issue of hunger in
America. Since overall trends, such as declining poverty
rates and record employment levels, do not support their
position, they are turning to images and hyperbole. For
example, last week two of the networks aired movies
portraying tragic fictional cases involving hunger.
One of the movies depicted a hungry student. In reality,
the child would be eligible for a free lunch provided by the
Federal school lunch program and even a free hot breakfast
if the school was a participant in that program. The movie
ignored these programs that serve over 24 million children
daily, and subsidize nearly 21 billion meals per year.
This week the Senate Agriculture Committee will travel to a
soup kitchen to conduct a hearing on the proposed Emergency
Hunger Relief Act of 1988 -- the Department of Agriculture
was not invited to testify. The Department would like to
make the public aware of the many food assistance programs
available to those who need them, and is working to
accomplish this.
2.
In addition to the school-based programs, two of the largest
food assistance programs are:
Food Stamps -- One in seven Americans received food
stamps for at least one month last year. Food stamps
go to an average 19.1 million Americans each month, and
the program cost the federal government $11.7 billion
last vear.
Special Supplemental Food Program for Women, Infants,
and Children -- This program provides only highly
nutritious foods like milk and eggs. The eligibility
criteria is less strict than for food stamps, and this
year a family of four with an income of up to $20,720
can qualify. This program has an average of 3.4
million beneficiaries each month.
THE WHITE HOUSE
WASHINGTON
March 28, 1988
MEMORANDUM FOR THE PRESIDENT
FROM:
ALAN M. KRANOWITZ
AMK
SUBJECT:
Weekly Issues Update -- Legislative Affairs
I.
CONGRESSIONAL MEETINGS
Tomorrow you will meet at 9:30 a.m. with the GOP Leadership
in the Cabinet Room. Also, tomorrow you will meet at 4:30 p.m.
with several key Senators regarding NASA and other science/
technology issues included in the budget.
II.
FLOOR ACTION
The Senate will continue debate on S. 79, the High Risk
Notification bill. A third cloture petition will mature
today. Following action on that measure, other possible
items for action include: S. 1009, the Japanese-American
Compensation bill, the Glass-Steagall banking bill,
legislation dealing with assistance to the Nicaraguan
Freedom Fighters, and uranium enrichment.
The House convenes today to consider several bills, under
suspension of the rules, including: H.R. 3871 -- Inter-
national Child Abduction Remedies Act, and S. 2117 -- Age
Discrimination Claims Assistance Act. Tomorrow the House
will consider H.R. 3396 -- Rehiring Former Air Traffic Con-
trollers. On Wednesday, the House will consider, subject to
the rule being granted, H.R. 3932 -- Presidential Transition
Effectiveness Act, and H.R. 3933 -- National Historical Publi-
cations and Records Commission Act. On Thursday, the House
may consider the Conference Report on H.R. 5 -- the School
Improvement Act of 1987. The House will not be in Session
on Friday. Action is also expected on Tuesday or Wednesday
on an assistance package for the Contras.
III.
DOMESTIC ISSUES
High Risk Notification, S. 79
Debate on S. 79 began last Wednesday. Two cloture motions
failed by large margins. A third cloture petition was filed
last Thursday which will mature today. Opponents of the
bill continue to feel confident that either the bill will be
defeated outright, or at least garner more than 34 votes to
make it veto safe.
- 2 -
Uranium Enrichment
A bipartisan group of Senators is applying increasing pres-
sure on Majority Leader Byrd to bring the uranium enrichment
bill to the Senate floor. OMB has strong concerns about the
cost of the bill. Even greater concern is being expressed
about an amendment expected on the Senate floor to establish
a fee for the use of imported uranium. This import fee
would violate the Canadian Free Trade Agreement.
The bipartisan group of Senators supporting this amendment
and the underlying bill, led by Senator Domenici (R-NM),
were bolstered by reports last week that the Canadians had
established a tariff relief measure on behalf of its apparel
industry. The vote on the uranium import fee may turn into
a referendum on the CFTA as a result of negative reaction to
the Canadian action, with textile state Senators joining
with Western Senators to pass the amendment. We are working
with another group of Senators to defeat the amendment, but
the outlook is cloudy.
Appropriations/Budget
The Senate Budget Committee is expected to begin markup of
the FY'89 Budget Resolution this week.
Last Wednesday, the House passed the FY'89 Budget Resolution
as reported by the House Budget Committee by a vote of
319-102. The Resolution accepts OMB's economic and
technical assumptions, and provides a deficit of $134.1B.
Canada Free Trade
The Senate Finance Committee has scheduled a second hearing
on the Canada Free Trade Agreement. The Administration has
been asked to respond to written questions by April 18.
Last week, Ambassador Yeutter met with Senators Baucus,
Simpson and Domenici to discuss their concerns with the
Agreement. Follow-up meetings are anticipated.
Japan-U.S. Agreement Concerning Peaceful Uses of Nuclear Energy
Last week the Senate rejected a resolution of disapproval of
the Japan-U.S. Nuclear Agreement Concerning Peaceful Uses of
Nuclear Energy, by a vote of 30-53. Absent further
Congressional action, the Agreement will take effect when
the 90-day clock runs out, now estimated to occur on April
25.
- 3 -
Nuclear Regulatory Commission Authorization
This week the Senate Environment Committee will mark up
legislation to authorize the Nuclear Regulatory Commission
(NRC). As currently written, the legislation has prompted
concerns from the Justice Department over its constitu-
tionality, since it restricts the ability of the President
to remove Commission members.
Trade Reform
Conferees on the Trade Reform bill hope to complete action
this week. While many improvements have been made, a number
of highly objectionable provisions, including plant closing
language, transfer of Presidential authority and government
procurement, remain unresolved. We have notified appropriate
members that a veto may be recommended if these issues are
not resolved.
Presidential Transition Act Amendments
Last Tuesday, the House Government Operations Committee
ordered reported the Presidential Transition Act (H.R.
3932). The Committee did not increase the amount of funds
for transition by the out-going President that the Admini-
stration requested. The House will consider H.R. 3932 on
Wednesday.
Tomorrow, in the Senate, the Government Affairs Committee
will markup its version of the legislation.
School Improvement Act
The House may consider the conference report to accompany
H.R. 5, the School Improvement Act, late this week. The
conferees, however, must first resolve two outstanding
issues on the magnet schools program and accountability of
supplemental basic education for the disadvantaged.
Catastrophic Health Insurance
The Conference Committee on H.R. 2470, the Catastrophic
Health Insurance bill, last met on March 16. However, House
and Senate staffs continue to meet and have reached agree-
ment on non-controversial items. The House submitted a
proposal on these minor items to the Senate and is awaiting
a Senate reply and further offer. Chairman Dan Rostenkowski
(D-IL) announced that the larger issues would be considered
during subsequent meetings at the call of the Chair.
- 4 -
Fair Housing Amendments Act of 1988 (H.R. 1158)
The Subcommittee on Civil and Constitutional Rights passed
and sent to the full House Judiciary Committee a bill to
rewrite Title VIII of the 1968 Civil Rights Act, the Federal
fair housing law. The schedule for markup in full Committee
has not been set, but there are indications that it may be
as early as tomorrow.
OTHER ACTION
-- Last Tuesday, the Senate voted to override your veto of
S. 557 (Grove City) by a vote of 73 to 24, and the House
concurred by a vote of 292 to 133.
-- The Senate Governmental Affairs Committee held a hearing
last Tuesday and has another scheduled for today on legis-
lation to upgrade the VA to Cabinet level. Joe Wright will
testify.
-- The House Energy and Commerce Subcommittee on Health and
the Environment may continue markup of Title II (ozone
restrictions) of the Clean Air Act this week, although no
specific schedule has been set.
IV.
NATIONAL SECURITY ISSUES
INF Treaty
Last week, the Senate Foreign Relations Committee began
markup of the INF Treaty. Several amendments were offered
by Senator Helms and Senator Pressler. All were defeated by
overwhelming margins. This afternoon, the Committee will
take up the treaty interpretation issue which continues to
be the most contentious aspect of the whole INF debate. We
have indicated our objection to current drafts of treaty
interpretation language and will continue to follow this
closely with key members. The Committee is expected to
report a resolution of ratification Tuesday afternoon.
Nicaraguan Assistance
Senate supporters of additional humanitarian aid for the
contras are waiting to see what action, if any, the House
will take this week. If the House passes an unacceptable
bill, efforts to amend it could be made in the Senate.
- 5 -
V.
NOMINATIONS
William L. Ball, III, Secretary of the Navy. Mr. Ball was
confirmed last Wednesday by voice vote. His ceremonial
swearing-in will take place at 11:45 a.m. on Wednesday.
Susan Wing and Brad Holmes, Federal Communications Commission.
Courtesy calls and briefings are underway.
Susan Phillips, Member of the Federal Trade Commission.
Courtesy calls and briefings are underway.
John Higgins, Member of the National Labor Relations Board.
Mr. Higgins' nomination has been transmitted. Senate Labor
and Human Resources Committee has jurisdiction. Courtesy
calls have begun.
VI.
NOTABLE COMMITTEE ACTION
Monday
The Senate Appropriations Committee and its various
subcommittees will hold hearings throughout the week on
FY'89 appropriations.
The Senate Foreign Relations Committee will continue
markup of the INF Treaty. The Committee may report the
Treaty tomorrow.
The Senate Governmental Affairs Committee will continue
hearings on the elevation of the Veterans' Administration
to Cabinet status.
The House Appropriations Committee and its various
subcommittees will hold hearings throughout the week on
FY'89 appropriations.
Wednesday
The Senate Environment and Public Works Committee, Hazard-
ous Wastes and Toxic Substances Subcommittee and Environ-
mental Protection Subcommittee, will hold a joint hearing
on legislation to protect the stratospheric ozone layer.
THE WHITE HOUSE
WASHINGTON
March 25, 1988
MEMORANDUM FOR THE PRESIDENT
FROM:
GARY L. BAUER GLB
SUBJECT:
Issues Update - Quarterly Report on AIDS
Last year you directed the Centers for Disease Control
(CDC) to provide an estimate of the prevalence of AIDS
infection in the United States to the Domestic Policy Council
(DPC) by November 1987, and to submit quarterly reports
thereafter on the prevalence and rate of the spread of HIV in
the U.S. CDC presented the first such quarterly report to the
DPC on March 23, 1988. Highlights of this report follow.
Trends in AIDS
56,200 cumulative cases of AIDS have been reported in the
U.S. (23,000 in the last year alone), of whom 31,400 have
died.
Most adult AIDS cases are homosexuals and drug abusers.
Four percent were attributed to heterosexual transmission.
During the past year, 416 cases were reported in children
under 13 (up 85% from the previous year).
Trends in Prevalence and Incidence of HIV Infection
CDC's estimate of the total number of persons infected in
the United States is still 1.0 to 1.5 million (the same as
the November 1987 estimate).
CDC cannot precisely estimate the prevalence and rate of
spread of AIDS in the general population, at this time.
The highest prevalence of HIV infection is found among
homosexual and bisexual men, intravenous drug abusers,
heterosexual partners of persons infected with HIV,
hemophiliacs, and children born to HIV-infected mothers.
In general, males have higher infection rates than
females; Black and Hispanic minorities have higher rates
than whites and other minorities; and persons between 20
and 45 years old have higher rates than other age groups.
-2-
The prevalence of HIV infection varies considerably by the
group tested and the geographic area.
Status of HIV Surveys
Plans for the comprehensive family of surveys: Over 420
surveys will be done in 30 metropolitan areas. Plans are
proceeding rapidly.
Childbearing women: In New York State, tests in child-
bearing women show an overall HIV prevalence of 0.77%; but
in New York City, one woman in 61 giving birth carried
HIV (over 3% in some parts of the city), 40% of whom pass
the infection to their newborns. (This survey helped
promote recent changes in New York City's policy to
routinely offer HIV counseling and testing at state and
city-financed clinics.)
Sentinel hospitals: In the first four sentinel hospitals
tested (all from the Midwest), overall prevalence was 0.31
percent.
Prison surveys: Pursuant to your request, the Federal
Bureau of Prisons began testing federal prisoners last
June, and found almost 3% infected. CDC and the National
Institute of Justice will test inmates in ten state
prisons beginning this June.
College students: 15 colleges will test about 1,000 blood
specimens each beginning this April.
National Household Seroprevalence Survey: This survey is
scheduled to begin in June 1989 with results available in
June 1990. However, difficulties may be anticipated
because a high percentage of infected persons are not
willing to be tested.
Other Related Developments
The first U.S. reported case of AIDS caused by a second
AIDS virus, HIV-2, was diagnosed in December 1987. CDC,
FDA, and others have tested nearly 23,000 additional
persons, including 8,500 blood donors, without finding
HIV-2.
Heart disease, all cancers and cerebrovascular diseases
(including stroke) have caused the deaths of 10 to 50
times as many Americans as AIDS. However, AIDS is the
only major category of disease in the United States where
mortality is substantially increasing.
THE WHITE HOUSE
WASHINGTON
March 25, 1988
MEMORANDUM FOR THE PRESIDENT
FROM:
THOMAS C. GRISCOM
r
SUBJECT:
Issues Update - Communications
NEWSPAPER EDITORIAL COMMENT
We examined editorials in 21 papers nationwide over the last week
and found substantial comment on the invasion of Honduras and
events in the Middle East.
Honduras
We found 24 editorials in national and regional papers since the
invasion of Honduras and before the cease-fire agreement which
offered a variety of comments on the actions of the Sandinista
government.
Ten editorials condemned the Sandinistas' invasion for
having undercut Central American peace efforts.
Nine expressed support* for the U.S. policy of sending
troops to Honduras, 12 criticized that policy, and 4
remained neutral.
-- Of those criticizing U.S. involvement, 8 called for
support of the Central American peace plan, 3 said the
U.S. needed to clarify its policy in the region, and 1
had no recommendations.
-- Of those neutral, 1 called for humanitarian aid to
further the peace process, 1 saw the need to clarify U.S.
policy, and 2 simply commented on the occurrence.
Nine saw the Sandinista aggression as a direct result of
Congress's aid cutoff.
Four said Congress tried to turn public attention away from
Sandinista actions by questioning the Administration's
motives, and/or by trying to make excuses for Ortega's
aggression.
Three condemned recent Sandinista violence toward peaceful
non-Contra demonstrators.
* Chattanooga News-Free Press, San Diego Union, Detroit News (2
editorials), Chicago Tribune, Washington Post, Dallas Morning
News (2 editorials), and New York Daily News.
Middle East
We found 9 editorials in the last week on the Middle East and
Secretary Shultz's peace plan for the region.
Five editorials supported the plan and American persistence
and tenacity. There was also general praise for Shultz and
his calm, forthright diplomacy. Shamir received the most
criticism for his "ostrich-like" attitudes, his "sophistry"
and his rejection of the U.S. plan.
The remaining 4 editorials concentrated on Arab and
Israeli intransigence and violent acts, and blamed them both
for the current deadlock in diplomacy.
Overall:
-- Eight editorials were critical of Israel, either for its
handling of the West Bank problem and/or for rejecting
the peace plan.
-- Three were critical of the Arabs for their unwillingness
to compromise and/or negotiate.
-- Four deplored the violence and "tragedy" of deaths on
both sides.
Generally, the editorials were more critical of Israel and
the Arab nations and PLO than of the U.S. Editorial writers
despaired of the situation improving, or of any of the
principal participants -- the U.S., Israel, Arabs and PLO --
coming up with a workable, acceptable solution.
Of newspapers with conservative editorial pages:
-- Two editorials were against the plan. They cited the
failure record of past international peace conferences
and the "folly" of including the Soviets and the PLO.
-- Two editorials said the media were unfair to
Israel.
THE WHITE HOUSE
WASHINGTON
March 25, 1988
MEMORANDUM FOR THE PRESIDENT
FROM:
FRANK J. DONATELLI
FJD
SUBJECT:
WEEKLY POLITICAL AND INTERGOVERNMENTAL AFFAIRS
DEVELOPMENTS
DELEGATE TRACKING
As of March 23, Associated Press reports the following committed
delegates:
Republicans
Democrats *
Bush
788
Dukakis
528.50
Dole
178
Jackson
510.55
Robertson
17
Gore
360.80
Uncommitted
72
Simon
171.50
Gephardt
154.00
Uncommitted
341.65
Needed for
Needed for
nomination
1,139
nomination
2,082
*These numbers will change after the Democratic caucuses this
Saturday in Michigan.
THE DEMOCRATS MESSAGE: GETTING TOUGH
The Democratic Party is out to shed its image of weakness in the
international arena. Stung by decisive Presidential defeats in
the last two decades when they were viewed as a party unwilling
to stand up for America abroad, their Presidential candidates
have begun talking tough about the need for defending America's
vital interests.
Their target is not the Soviet Union or leftist regimes in the
third world seeking to spread communist subversion. Rather, they
want us to get tough with our allies - Europeans on defense and
Asians on trade.
On defense, they accuse our European allies of not doing enough
for their own defense, relying instead for protection on U.S.
forces stationed in Europe. They argue that this increases our
military expenditures and our budget deficits, thereby putting us
at a competitive disadvantage economically. The answer they say
is to get tough on our European allies by forcing them to assume
a greater responsibility for their own defense.
On trade, they accuse our Asian allies of unduly restricting our
exports. This is absolutely true, but they then go on to infer
that these unfair trading practices are responsible for our trade
deficit and for unemployment in this country. Therefore our
entire economic future is at risk. Their solution is a new policy
of "economic nationalism" that recognizes that a coordinated U.S.
Government response involving threats of new trade barriers is
necessary if American economic security is to be guaranteed.
Such a "get tough" theme has obvious political benefits:
1. It allows the Democrats to utilize tough rhetoric to
strengthen their image as protectors of vital American interests.
Since their targets are our Allies, not adversaries, no
threatened military response is necessary.
2. It is a justification for reductions of our military budget,
thereby strengthening their credentials on deficit reduction.
3. It exploits the one negative set of statistics in the Reagan
years, the trade deficit, the budget deficit and the highly
publicized layoffs in a few industries (steel, autos), to call
into question all of the economic progress that has been
achieved.
4. It is a justification for a larger federal government role in
economic policy. This activism includes not only trade, but also
additional government expenditures on domestic programs to make
America "competitive" in areas such as education, jobs training,
health care and child care. This is big government through the
back door.
5. It fans the real fear that, whatever economic successes we
have had, our economic future is very much at risk.
It is significant that the public attitudes have shifted in the
past 8 years from concern about communist advances abroad and
big government at home to a belief that we are doing too much
abroad and too little at home.
Our party has yet to develop a response to this sophisticated
message. Our best response would seem to be that the American
military presence abroad and our free trade approach at home are
policies that are in our interest, and are not favors to foreign
countries. Indeed, the real result of these proposed Democratic
policies of isolationism and protectionism would have
catastrophic foreign and economic consequences. We might wish to
look for opportunities to further develop this theme.
HECHT FUNDRAISING
Your participation at the fundraising reception for Senator Chic
Hecht this past week gave his campaign a needed boost. With some
250 people present, Senator Hecht raised more than $300,000 and
has received pledges of an additional $100,000-$150,000. Perhaps
even more helpful to the campaign was the extensive media
coverage that Senator Hecht received in Nevada.
PRESIDENTIAL PRIMARY FEC REPORTS
Spent
On Hand
Debts
GOP
BUSH
14.1
6.7
.25
DOLE
18.0
.84
.71
ROBERTSON
19.0
7.4
8.4
DEMOCRATS
DUKAKIS
11.4
2.9
.57
GORE
6.0
.34
.09
GEPHARDT
5.6
.45
1.0
SIMON
5.3
.76
.83
JACKSON
3.5
.43
.85
all in millions of dollars
numbers reflect activity through February 29
POLL SHOWS INCREASED SUPPORT FOR CONTRAS
The Washington Post/ABC News poll completed last Monday found
that 40% of those surveyed favor contra aid, while 56% oppose it.
This is the highest level of support since the day after Lt. Col.
North finished testifying (43% favored aid then). In addition,
when asked if they would favor aid if the Contra's survival
depended on it, public support jumped to 56%.
OFFICE
EXECUTIVE OFFICE OF THE PRESIDENT
Jr
OFFICE OF MANAGEMENT AND BUDGET
STE-UTIVE
C32
WASHINGTON D.C 20503
March 25, 1988
MEMORANDUM FOR THE BRESIDENT
FROM:
James K. eller III
SUBJECT:
OMB Issues Update
1.
FY 1989 House Budget Resolution (HBR). The HBR was
passed this week by a wide margin. Although the
House Leadership asserts that the resolution meets
the Bipartisan Budget Agreement, our analysis
indicates there is a mismatch between budget
authority and outlays. During the final tally, the
House Budget Committee found that while their
outlays were within the levels specified in the
Agreement, their total budget authority level was
$4.7 billion over the Agreement. To remedy the
situation, the Committee made several non-binding
assumptions which -- if carried out -- would
consitute a violation of the Bipartisan Budget
Agreement. I sent letters to Chairman Bill Gray,
ranking member Del Latta, and to all other budget
summiteers advising them of our strong concern
about the matter.
In terms of details, the HBR provides FY 1989
Defense budget authority and outlay totals that are
consistent with the Bipartisan Budget Agreement.
In lieu of the 4.3 percent military and 2 percent
civilian pay raise proposed in your FY 1989 budget,
the HBR provides a 3 percent pay raise for both
military and civilian personnel. The HBR would
also reduce outyear levels to reflect about 1
percent real budget authority growth, versus the 2
percent requested in your budget. (This should be
viewed as a victory since, as you know, real
defense budget authority has fallen the last
several years. )
Meanwhile, the Senate Budget Committee
announced that mark-up of the Senate Budget
Resolution will begin on Monday, March 28th.
2.
Postal Service "Off Budget". This week, I
testified before a joint meeting of two House
Post Office and Civil Service Subcommittees on
taking the Postal Service "off budget". Twenty
years ago, the unified Federal budget was developed
to show precisely how much the government is
spending, collecting, and borrowing. The Postal
Service interest groups would like to take the
Postal Service out of the unified Federal budget to
avoid the effects of governmentwide belt-tightening
efforts such as those specified by the Bipartisan
Budget Agreement and Gramm-Rudman-Hollings. I
oppose this move, advocated alternative ways the
Postal Service might meet mandated savings (instead
of shortening window hours, etc.), and endorsed the
Privatization Commission's recommendations to end
the Postal monopoly.
3.
Military Recruiting and Retention. Recruiting and
retention results for the first quarter of FY 1988
will soon be made public. Overall recruiting
remains at very high levels, although the Navy and
Marine Corps showed a slight decline in recruiting
high school graduates. Retention of careerists
increased, while first-term enlistments dropped to
the lowest level since 1981. Defense may highlight
the negative results as an indication of future
difficulties to justify their requested 4.3 percent
pay raise.
4.
Poverty Coming Down. Contrary to the public
misperception, which is sometimes fostered by the
media, poverty rates for all major population
groups are declining. This week, Business Week
published my letter (which is attached) correcting
their cover story, "America After Reagan", that
claimed "poverty is growing, especially among the
working poor and children".
5.
Presidential Transition. On Wednesday, the House
will consider legislation that would increase
transition funding for the incoming President and
Vice President, while maintaining the current level
($1 million) for the outgoing President and Vice
President. A separate memorandum on this topic
will be coming to you later today.
.6.
Economic Statistic of the Week. The rate of growth
in real GNP was exactly 4 percent for 1987 on a 4th
quarter over 4th quarter base according to this
week's revision to the data. A year ago the
consensus private forecast did not expect it to
reach even 3 percent.
-2-
BusinessWeek
Readers Report
EDITOR-MI-CRIEF: Stepher B Shepard
Ironic is perhaps too restrained a word
BARAGING EDITOR: A Dierdorf
EDITOR: Wilkarr Wolman
REAGANOMICS HAS helped
to describe the decision to include such a
ASSISTANT MANAGING EDITORS:
THE WORKING POOR
factually unsupported accusation in an
John Maughar Anthony Pans Paul W Sturm
article questioning the practice of rely-
ART BIRBCTOR: Maicoim Frouman
t is disheartening to see BUSINESS
ing on unnamed sources without disclos-
SEINOR EDITORS: Box Amoid Robert J Dowling Robert E Far
roll Alan Hail Stuar Jackson Richard F Janssen Ephraum
WEEK repeat the canard that "poverty
ing their possible motives.
Lews Man Momson Sain Powel Seymour Zucke
is growing. especially among the work-
Welles states that his source "has no
EDITORIAL PAGE EDITOR: John E Pluenneke
ing poor and children" ("America After
connection with the Freeman case
CHIEF of CORRESPONDENTS: north G Felevr
INTERNATIONAL EDITION EDITOR: Robert Ne"
Reagan." Cover Story. Feb. 1). In fact,
However, a number of other parties
SENIOR WRITERS: Anthony Bianco John Hoer James R
both the number of poor and the poverty
have an interest in discrediting the com-
Norman Bruce Nussbaum John Pearson Morton A Reichek
Stewa- Tor Chns Welles Brenton Welling
rate peaked in 1983 and have fallen in
mission and the integrity of its employ-
ASSOCIATE EDITORS: Duane E Anderson Sarah Bartiett Jane R
Cutala Judith - Dobizynsk Gene G Marcia Otrs Port Card
each of the following three years for all
ees and processes by making accusa-
Scon G David Wallace
classes of the poor-total, working poor.
tions of SEC "leaks."
DIRECTOR of EDITORIAL OPERATIONS: John = Williams
and children. Official statistics are not
I suggest that the editors of BUSINESS
SEHOR SYSTEMS MANAGER: Richard Jiman
PICTURE EDITOR: Roxanne Edwards
yet available for 1987, but the strong
WEEK ask Welles whether his source has
BCONOMICS: James C Cooper (Business Outiook edrtor Nor.
growth in the economy last year and the
an interest, or represents an interest.
ma- Jonas (Economics editor Karer Penna (Deputy) Joan
Berger (Assoc Gene Koretz (Economic Trends editor) Jud
large drop in unemployment imply a con-
that is involved in other investigations
Crowe Asst editor:
tinuation of the downward trend.
being conducted by the SEC. or otherwise
DEPARTMENT EDITORS: Corporate Finance EAYT E Spragins in
formation Processing Geof owns International Edition: Chanes
The article compared 1979 poverty sta-
stands to benefit from the publication of
Gatine International Money William Giasge International
News William Horsler" Eizabett Weiner (Assoc Labor Aaron
tistics only with the higher levels of
an article that falsely accuses the com-
Bernster Legal Affairs awrence Tel Management: Johr A
Byme Marketing Mark - vamos Amy Duniur Assoc Markets &
1986, leaving readers with the mistaken
mission staff of impropriety.
investments. Jeffrey M Lademar Gan Wass (Assoc Mo-
dia David Liebermar Money & Banking Fredenc A Miller
impression that poverty has been rising
Gary Lynch Director
News Robert Bane Hams Collingwood People Marc Frons Per.
sone Business Donald 1 Dunr irene Pave Science & Technol-
steadily. It increased during the first
Securities & Exchange Commission
ogy Emin Smith Scoreboards Robert MITTIS Social issues: En
zabeth Ennich Telecommunications John J Koller Trans-
half of this period, when two recessions
Washington
portation Chuck Hawkins
curbed income growth. Thereafter, con-
STAFF EDITORS: June Baurr Susan Berway Memb Bluestone Rose
Brady Chinstopher Farrel Anne R Feld Peter Finch Walecis Konrad
tinued economic expansion, accompanied
Editor's Note: The account of The
Frank McCor Christopher Power Troy Sega Sana Servoc John W
Verify Devic Zigas
by low inflation, benefited all Ameri-
Wall Street Journal story's origins was
ASSISTANT EDITORS: Susar Geriona Suzane Woolley
cans, especially the poor. The percentage
disclosed by an individual who has no
COPY EDITORS: Michael Mercunc Joan Warner (Asst cheets) Parr
Black Prudence Crowther Dense Demong Can Desens Vanalyne
of children living in poverty was not 16%
interest in discrediting the SEC. Other
Green Avena number Harry Maurer Marc Mater Jack Robbins
Maixa Perca Scott Smith Jerr Tab Alice Noble (Asst) Ade Rosanc
"at the start of the Administration." It
individuals. some sympathetic to Free-
Barbara Tierney
was 16% in 1979.
PRODUCTION COPY EDITORS: Donaid Haisband (Chief) Hellberg
man and some not, provided informa-
Halimundsson Rober Norman Coine Keating Philip Lucht Stepher
James C. Miller III
tion that supported our main source.
M Romanot
ART: aura Baer (Deputy director Slever Taylor Louise D White
Director
Assoc directors Jav Petrow (Ass: director Graphics Arthur Eves
(Director Lam ANORES (Assoc avector Roc Dovie (Asst director
Office of Management & Budget
Production Man .or Schneider (Mg Craig Social (Asst mg
KOREA'S $47,000 K-CAR
PROTOS: awence Lippmann Assoc editor Sue Bloom Suzanne
Washington
TAXES THE IMAGINATION
Wolbers Ass edrtors Ronne no (Researcher) Kathieen Dan
(Traffic mg
EDITORIAL OPERATIONS: Albert E Baker (Makeur director Barry M
Beshir Specia projects mg: A Peter Clerr (intemational) Thomas R
THROWING STONES
R
egarding "Can Asia's Four Tigers
Dowc Snes mg Donaid C Pearsor (Traffic mgr Karen Turo*
be tamed?" (International Business.
(Productor mg Lealey Gasper JOSE Martin Ear Smith lise
AT unnamed SOURCES
wattor Nicholas White (Maxeuc edrtors Kimberry Brown Felox Lin
Feb. 15), some additional perspective is
any Conna Pulssant Edgaroc Torres
CORRESPONDENTS: Jerome Zukosky (Deputy chef) Atlants: Scon
'W
all Street, the SEC. and the press:
needed in respect to South Korea. In a
Ticer (Mg Dear Foust Boston Leshe Hairr (Mgr Karth H
Who's leaking what-and why?"
study released last May-when the duty
Hammonds Chicago James E Elits (Mg Kathieer Deveny
Michael Onea LOIS nemer Cleveland Zachary Schiller (Mg Det-
(Media. Mar. 14) questioned the practice
was expected to be 50% instead of the
Iss: Todo Masor (Mg Kevin Kally Denver: Mark Noy (Mgr San-
ora D Atchesor (Si Correspondent) Detroit. James B Treace (Mgr
of relying on unnamed sources for infor-
current 40%-the American embassy in
William Hamptor (S Correspondent wendy Zettner Houston: JC
Elser Davis (Mg Todo Vogel Los Angeles Ronald Grover (Mgr
mation that. when published, damages
Seoul put the retail price of a $10.000
Teresa Carson Mamt Pote Engardic (Mgr Gal DeGeorge Minne-
the person or institution that is the sub-
K-car at $30,000-not the $47.000 that
apolis-St. Paut Patrick Houston (Mg Mary Prizer Phitodetphia
Joseph Weber (Mg Richard W Anderson Pittsburgh Gregory
ject of the information-without stating
you (and Presidential aspirant Richard
Meas (Mg Mar Rothman Michael Schroeder San Francisco Jon-
ather B Levine (Mg Richard Brand: Kathenne M Hamer Joan
the source's motive for disclosing the
A. Gephardt) estimate. Because of inter-
O'C Hamitor Stamford Russel Mitchell (Mg Resa W King (Si
Correspondent Washington: Lee Walczak (Mg Stephen H Wild-
information. The article then cites an un-
nal taxes, the embassy also put the re-
strom IS News Ednor) Stan Crock (News Editor) Even Clark Vicky
Cahar Paula Dwyer Richard FN Susar Ganand Howard Gleckman
named source to support an allegation
tail price of a $10,000 Korean-made car
Dave Griffins Douglas A Harbrecht Bel Javetsk Paul Magnusson
Make McNamee Sett Payne Frances Seghers Tim Sman Bonn:
that an employee of the Securities &
at $20,000.
John Templeman (Mg Brussets. Jonathan Kapstein (Mg Hong
Kong Dor Jones Yang (Mg Maria Shac London: Rich.
Exchange Commission leaked the infor-
Although import duties are still too
are A Meicher (Mg Mark Maremont Medrid: Jack Patterson (Spe-
mation that led to an article appearing in
high, one may reasonably expect them
call Correspondent. Mexico City: Stepher Bake (Mgr Parts:
Frank Comes (Mgr) Thane Petersor Bianca Riemer John Ros-
the The Wall Street Journal about Rob-
to continue to drop. A year ago. when
sant Rome William Symonds (Mg Karen Worman Singapore
Chery Debes (Mg Tokyo Larry Armstrong (Mg Barbara Buel
ert M. Freeman.
Korea first announced it would allow the
No Gross Toronto Earth Terry
EDITORIAL SERVICES: Broadcasting Fluor Ruderman (Editor) Ray
As I told Chris Welles. I am confident
import of cars, the duty was 1007
Hottman Business Manager Barbara Boynton Public Rela-
that the information cited in the article
tions Christine Summersor Josephine Coppola Reprints V..
The Korean government has commit-
via Beftor Research Linda Kelly Asst editor Fred Katzen-
was not provided by an SEC employee.
ted itself, since 1982. to a progressive
perç Systems Jacke Ridolf Courtenay Eooy
McGRAW WORLD NEWS: = Peter Gal (Director) Washington:
Bruce A Agnew Chie' Haze Bradtord Sarar Dodge Stever
Order Peter Hoffman Torr ichnows Edward S Kean Patricia
BUSINESS WEEK
European Circulation Center McGraw H H Maidenneac bene-
England Telephone (0628) 23431 Teles NEW
Kranz Roc n KUCK'C Dennis Melamed Daniel E Moskowitz Reg.
MARCH 28 1988 3044
Postmaster Please send address change. :. BUSINESS WEEK
naid Rner Camenne Yang Bonn: Robert ingersol (Chief) Brue-
seis JOYCE Hearc (Chief) Sandy Bullock London Sarah Miller
SSN 0007-7135
Box 430 Hightstown NJ 08520 Second-class posted
York N.Y., and at additional mailing office. baic Montres
Chef George Coats Victons English Moscow Peter Gaiuszka
P Q Registration Number 9010 Copyright $ in
Chief Sao Paulo Jeffrey Ryser (Chef Tokyo Amy Borrus (Chief)
Published weeks except for one ISSUE in January by MeGraw Hill
All nghts reserved. Title registered Pater' the
Tosnic Amake Naoak Usu Zurich Laura Plarsk
Inc Founder James H McGraw
Officers of McGraw-Hill Publications Compar Preside Harois
Executive Editorial Circulation and Advertising Offices McGraw
PUBLISHER: John W Patter
McGraw III Executive Vice Presidents Pat F
Hill Building 1221 Avenue of the Americas New York NY 10020
CONTROLLER: Gary B Hopiuns
Patten
Telephone (212) 512-2000 Domestic Telex 12-7960 Internations. Tel
VP, DIRECTOR OF MARKETING: Johr Bedel
Officers of McGraw-Hill inc Harold и Modraw
PA 232363 Cable McGraw Hill New York TWX 710-581-4879
VP, INTERNATIONAL: Earl S Moore Jr
sept L Dionne President and Che'
subscription rate $39 9: per year 2 years $69.95 years
Landes Executive Fire Presider: and Secretary Frank Person
VP, PLANNING & DIVELOPMENT: Barbara Munder
Single copies $2 Write for rate: IT. other countries
Senior Vice President Treasury Operations
VP, CIRCULATION: Kiffy Carrol Wilmams
Business Heen Subscriber Services 1-800-635-1200
DIRECTOR OF PRODUCTION: John E Thompson
PHOTOCOPY PERMISSION Where necessary permission LS granted by the copyright owner for those registered with :ne Corpright
VP, U.S. ADVERTISING SALES: Mark A Dace)
Center CCCO 2: Congress St Salem Mass 01970 to photocopy any article herein for the fiat fee of $: 5 per cop. of eact ather Seno
DIRSCTOR, ADVERTISING BUSINESS: Anor C Lynch
u. the CCC Copying for other than persona or internal reference use without express permission of McGraw H. 15 promited reques:
DIRECTOR, PUBLIC RELATIONS: Mary = McGeachy
for customized bulk reprints w Business Week Reprints PO Box 457 Hightstown NJ 0652 OF ea! 600 ISSN
THE WHITE HOUSE
WASHINGTON
March 25, 1988
MEMORANDUM FOR THE PRESIDENT
FROM:
T. KENNETH CRIBB, JR.
THCM
Assistant to the President
for Domestic Affairs
SUBJECT:
Weekly Update
The Next Power Grab: Fair Housing Legislation
The next so-called "civil rights" agenda item for the liberals in
Congress is legislation amending the Fair Housing Act (Title
VIII). As with the Grove City legislation, the Administration
has supported responsible legislation that would strengthen
Federal prohibitions on discrimination on the basis of race,
national origin, religion, gender or handicap.
The Departments of Housing and Urban Development and Justice have
crafted proposed legislation that would expand the scope of
coverage by allowing the Attorney General to file suits against
individual acts of discrimination and not just against a "pattern
or practice" of discrimination. Additionally, the Administration
bill would increase penalties and strengthen protections for
handicapped persons by requiring that buildings be equipped to
provide "ready access" to the premises.
At the same time, the Administration bill would avoid fundamental
flaws in fair housing legislation that has been introduced by
liberals in the Senate and in the House of Representatives.
1.
No Trial by Jury. The liberal bills would create a complex
Federal bureaucracy of Administrative Law Judges (ALJ's) to
try fair housing cases brought on behalf of private
citizens. There would be no right to have a jury determine
which party was at fault and the ALJ's would award punitive
damages or civil penalties. In addition to expanding the
scope of the Federal bureaucracy, this provision would
violate the 7th Amendment guarantee of a jury in civil law
suits.
2.
New Standard of Discrimination. The bills would prohibit
discrimination on the basis of "familial status." Since
this term creates a new concept with little or no indication
in the legislative record about its meaning, it could create
a standardless prohibition. In the hands of activist judges
it could be used to prohibit housing developments operating
especially for families, singles, or even retirees in
certain circumstances.
3.
A New Federal Building Code. In provisions aimed at
benefitting handicapped persons, the bills would go further
than the current "ready access" standard which ensures that
housing is available to disabled persons, without imposing
unreasonable burdens on landlords. Instead, the bill would
require extensive structural modifications to any building
with more than six units. These new requirements amount to
a Federal building code that is far more onerous than most
state codes.
4.
Integration Maintenance. The liberal bills would authorize
reverse discrimination in order to maintain a racial
balance. Recently the Court of Appeals in New York struck
down a similar policy in Starrett City, a large housing
project that gave preferential treatment to maintain a 60/40
ratio of minorities to whites. If such a provision were
enacted into law it would institutionalize a quota system in
public housing.
Your Administration will be working hard to see that these
problems are addressed as the fair housing legislation is taken
up by Congress.
THE CHAIRMAN OF THE
COUNCIL OF ECONOMIC ADVISERS
WASHINGTON
March 24, 1988
MEMORANDUM FOR THE PRESIDENT
FROM:
BERYL W. SPRINKEL Berylle. Sprinkel
SUBJECT: Strengthening Opposition to Increased Minimum Wage
In spite of a veto threat, the House Education and Labor
Committee approved an increase in the minimum wage from $3.35 to
$5.05 an hour over the next 4 years. Legislation introduced in
the Senate would increase the minimum to $4.65 an hour and
would index it to inflation.
One alternative might be to accept a minimum wage lower
than that proposed by Congress; this would reduce the harmful
effects. A more attractive possibility, which has been discussed
among your Senior Advisors, is a "training wage" -- a lower
minimum wage for up to six months on the job. Another useful
alternative that has been considered by the Congress is an
enhanced Earned Income Tax Credit (EITC). Relating the EITC to
family size would require the commitment of Federal dollars (to
the working poor), but it would not have the negative side
effects of a higher minimum wage.
HARMFUL EFFECTS OF MINIMUM WAGE
The vast majority of economists agree that the minimum wage
destroys job opportunities, particularly for the young and
unskilled, and increases unemployment. The minimum wage is a
price control. It bars the use of productive resources, reducing
economic output and competitiveness. The minimum wage reduces
human capital accumulation by setting up a barrier to on-the-job
training and work experience. Because the minimum wage increases
the price of unskilled labor, it favors skilled workers at the
expense of the unskilled and encourages the substitution of
capital for labor. Because regions of the United States differ
in their wage levels and resource endowments, a Federally
mandated minimum wage is uneven in its effect, harming certain
areas more than others. This is one reason the minimum wage is
so strongly supported by members of Congress from areas where
business is migrating to lower wage areas of the country.
Similarly, the minimum wage harms certain industries more than
others.
-2-
Erosion in the real value of the minimum wage has
contributed to the strong record of job growth during this
expansion, particularly to gains for minority teenagers. Since
1982, black teen employment has increased by 8.2 percent per
year, compared with 2.7 percent annual job growth overall. The
black teen unemployment rate has fallen by an astonishing 16.1
percentage points, compared with 8.0 percentage points for all
teenagers and 5.0 percentage points for all civilian workers.
Increasing the minimum wage would dampen currently favorable
prospects for further job gains. The minimum wage bills under
consideration would reduce employment by roughly 600,000.
MINIMAL EFFECTS ON ALLEVIATING POVERTY
Raising the minimum wage is not a good way to increase the
earnings of poor households. Some poor workers may make small
gains, but others will lose jobs. The typical minimum wage
worker is young, not a household head, and lives in a family well
above poverty. Minimum wage jobs are typically entry level.
Only about 20 percent of minimum wage workers live in households
below the poverty line and under 2 percent of full-time,
year-round workers are poor.
EARNED INCOME TAX CREDIT
The present EITC provides a maximum refundable tax credit of
about $870 to workers who have dependent children and who earn
$6,200. The credit phases out at earnings of about $18,500. The
amount of the credit does not increase with family size. A
proposal to augment the EITC has been introduced by Congressman
Petri that would increase the amount of the credit (to $2500
maximum) and relate it to the number of children, while
maintaining the current phaseout level.
The EITC is automatically targeted to low-income workers
with dependents and avoids the economic costs and job destruction
of the minimum wage. Expanding the EITC would encourage labor
force participation, without raising labor costs. Formation or
retention of two-parent families may also be encouraged.
BUDGET COSTS
Neither OMB nor CBO has formally attributed Federal costs to
increasing the minimum wage, nor estimated the budgetary costs of
an augmented EITC. OMB informally has estimated that the
proposed minimum wage increase would have a budget cost of at
least $1.4 billion, and CBO informally has estimated that the
Petri EITC proposal would cost $1.5 billion. Other EITC options
would cost substantially less.