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Presidential Briefing Papers
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Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual
collections.
Collection: President, Office of the: Presidential
Briefing Papers: Records, 1981-1989
Folder Title: 03/17/1982 (Case File: 069107)
(1)
Box: 15
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
TR ID #. 069/07
WHITE HOUSE
OFFICE OF RECORDS MANAGEMENT
WORKSHEET
X MEDIA
H INTERNAL
Subject Codes:
Name of Document:
BRIEFING PAPERS FOR
PR PR007.01
APPOINTMENTS FOR MAR 1782
PRESIDENT'S SCHEDULED
AG
/
Subject: Meetmenicth California Cattlemen's
BE003.06
associa Two
2 nuting with White House news Phitographers'
PR 005.
associa tim Cantent Winners
S Ceremony transmitting leg islation on the
Co C0001.09
Carilillan Basin Initiative to Congress
LE
F0003.02
4 Funchson for Prime Minister HAUGHEY
C0073
of Ireland in celebration ofst.
50003.
PATRICK'S DAY,
H0099.
5, Schedule of the Prime Minister's official
working visit to Washington D.C.
.
ROUTE TO:
ACTION
DISPOSITION
Tracking
Type
Completion
Action
Date
of
Date
Office/Agency
(Staff Name)
Code
YY/MM/DD
Response
Code YY/MM/DD
RMMATT
RSZ
/ /
/
/
Referral Note:
March 16, 1982
5:00 pm
THE WHITE HOUSE
WASHINGTON
THE PRESIDENT'S SCHEDULE
Wednesday, March 17, 1982
9:00 am
Staff Time
Oval Office
(30 min)
(Baker, Meese, Deaver)
9:30 am
National Security Briefing
Oval Office
(15 min)
(William P. Clark)
9:45 am
Meeting with Secretary Weinberger
Oval Office
(15 min)
(William P. Clark)
Cahenit Room
10:00 am
Dropby at Meeting of Leaders of Calif-
Roosevelt Room
(10 min)
ornia Beef Cattle Industry
(William P. Clark)
10:15 am
Photo with Winners of White House News
Oval Office
(10 min)
Photographers Association Contest
(Larry Speakes)
Remarks Rose Garden or
RESERVECT
Room
10:30 am
Caribbean Basin Initiative Ceremony
(15 min)
(Kenneth Duberstein)
Cabinet Room
10:45 am
Personal Staff Time
Oval Office
(45 min)
11:30 am.
Meeting with Prime Minister Charles
Oval Office
(30 min)
Haughey of Ireland
(William P. Clark)
12:15 pm
The President & Mrs. Reagan host Lunch-
East Room
(75 min)
eon honoring Prime Minister & Mrs. Haughey
1:40 pm
To Private Quarters for Remainder of Day
Residence
that
March 16, 1982
5:00 pm
THE WHITE HOUSE
WASHINGTON
THE PRESIDENT'S SCHEDULE
Wednesday, March 17, 1982
9:00 am
Staff Time
Oval Office
(30 min)
(Baker, Meese, Deaver)
9:48
9:30 am
National Security Briefing
SAC
Oval Office
(15 min) 948
(William P. Clark)
LINE
948-10
9:45 am
Meeting with Secretary Weinberger
Oval Office
(15 min)
(William P. Clark) ADM watking
GANCHAS GARRIEL
10:03-10:12
CABINET
10:00 am
Dropby at Meeting of Leaders of Calif-
Roosevelt Room
(10 min)
ornia Beef Cattle Industry
(William P. Clark)
10:15 am
Photo with Winners of White House News
Oval Office
(10 min)
Photographers Association Contest
(Larry Speakes)
10.25
wre EM, MICO JAB.
ROOSEVELT. Koom
38->
10:30 am
Caribbean Basin Initiative Ceremony
Rose Garden or
(15 min)
(Kenneth Duberstein)
Cabinet Room
10.31 - PAVEGRAGE
10:45 am
Personal Staff Time
Oval Office
(45 min)
11:30 am
Meeting with Prime Minister Charles
Oval Office
(30 min)
Haughey of Ireland
(William P. Clark)
1.58
12:15 pm
The President & Mrs. Reagan host Lunch-
East Room
(75 min)
eon honoring Prime Minister & Mrs. Haughey
2.00
WR ROGE'S OFC
2.05
1:40 pm
To Private Quarters for Remainder of Day
Residence
Log Kept by Kathy Osbome
March 16, 1982
5:00 pm
THE WHITE HOUSE
WASHINGTON
THE PRESIDENT'S SCHEDULE
Wednesday, March 17, 1982
9:00 am
Staff Time
Oval Office
(30 min)
(Baker, Meese, Deaver)
9:30 am
National Security Briefing
Oval Office
(15 min)
(William P. Clark)
9:45 am
Meeting with Secretary Weinberger
Oval Office
(15 min)
(William P. Clark)
10:00 am
Dropby at Meeting of Leaders of Calif-
Cabinet Room
(10 min)
ornia Beef Cattle Industry
(William P. Clark)
(Tab A)
10: 15 am
Photo with Winners of White House News
Oval Office
(10 min)
Photographers Association Contest
(Larry Speakes)
(Tab B)
10:30 am
Caribbean Basin Initiative Ceremony
Roosevelt Room
(15 min)
(Kenneth Duberstein)
(Tab C) (draft remarks attached)
10:45 am
Personal Staff Time
Oval Office
(45 min)
11:30 am
Meeting with Prime Minister Charles
Oval Office
(30 min)
Haughey of Ireland
(William P. Clark)
(distributed separately)
12:15 pm
The President & Mrs. Reagan host Lunch-
East Room
(75 min)
eon honoring Prime Minister & Mrs. Haughey
(Tab D) (Draft remarks attached)
1:30 pm
Meeting with Ambassador Habib
Oval Office
(William P. Clark)
(distributed separately)
Return to Residence
A
THE WHITE HOUSE
WASHINGTON
DROP-BY WITH CALIFORNIA CATTLEMEN'S ASSOCIATION
DATE:
March 17, 1982
LOCATION:
Roosevelt Room
TIME:
10:00 a.m.
FROM:
Bill Clark
Bill
I.
PURPOSE
To welcome leaders of California beef cattle industry
to the White House.
II. BACKGROUND
Current and past officials of California Cattlemen's
Association are in Washington for annual meeting of National
Cattlemen's Board. Representatives of the CCA and their
wives are meeting in the Roosevelt Room with fellow
Californian's in the Administration, including Ed Meese,
Bill McMillan of Agriculture, Bob Nimmo of VA, and Ray
Arnett of Interior, and myself. You may be familiar with
several members of the group from Rancheros Vistaderos and
California ranching circles.
III. PARTICIPANTS
See attached
IV. TALKING POINTS
O
It is a pleasure to welcome friends from the California
Cattlemen's Association to the White House.
Very rarely do I get an opportunity to spend a moment
with a group with which I share so much in common --
California -- love of ranching work and life.
I hope your meetings in Washington this week are
constructive. The concerns of the family-owned cattle
ranch and cattle-feeder operations are known to me.
I leave you in good hands to continue your meeting
this morning -- Ray Arnett from Interior, Bob Nimo
from VA, and Bill McMillan from Agriculture.
DROP-BY FOR CALIFORNIA CATTLEMEN'S ASSOCIATION
LIST OF PARTICIPANTS
Edward Biaggini, Jr.
Selistia Biaggini
Jack Owens
H. Clay Daulton
Nancy Mengshol
Jack Russ
Leo Johnson
George Scovel
William Staiger
Glen Van Schaack
Mari Van Schaack
Charles Kershaw, Jr.
Margaret Kershaw
Thomas Remington
Paula Remington
Francis Simpson, Jr.
John Weber
Ray Arnett - Assistant Secretary of Interior
Robert Nimmo - Administrator, Veteran's Association
William McMillan - Assistant Secretary of Agriculture
B
THE WHITE HOUSE
WASHINGTON
MEETING WITH WHITE HOUSE NEWS PHOTOGRAPHERS'
ASSOCIATION CONTEST WINNERS
DATE:
March 17, 1982
TIME:
10:15 a.m. (10 minutes)
LOCATION:
The Oval Office
FROM:
Larry Speakes
I. PURPOSE
To be photographed with the winners of the 1982 White House
News Photographers' Association photo winners.
II. BACKGROUND
The White House News Photographers' Association has requested
that you meet with the winners of the 1982 photo competition.
You met with the 1981 winners last March.
A message has been prepared for inclusion in the Association's
booklet of prize-winning photographs. A copy is attached.
An invitation has been extended to the President and Mrs.
Reagan to attend the Association's annual dinner in May, where
the winners are to be honored. If asked, a non-committal
response is suggested.
III. PARTICIPANTS
Attached list of photo contest winners
Larry Speakes
IV. PRESS PLAN
White House Photographer
News Association Photographers
V. SEQUENCE OF EVENTS
After greetings, the President will look at the photographs
and pose for pictures.
Attachments: List of 1982 photo winners
Text of message to the Association
WINNERS OF THE 1982 WHITE HOUSE NEWS
PHOTOGRAPHERS ASSOCIATION CONTEST
STILLS
Doug Chevalier
Wally McNamee
The Washington Post
Newsweek
Dennis Cook
Larry Morris
Associated Press
The Washington Post
Richard Darcey
Ira Schwartz
The Washington Post
Associated Press
Fred Maroon
James Stanfield (unable to attend)
Free-lance
National Geographic
John McDonnell
Margaret Thomas
The Washington Post
The Washington Post
REELS
Steve Affens
Paul Fine
WJLA
WJLA
Bob Boyer
George Friedrich
NBC
NBC
Shelly Fielman
Dave Gross
NBC
WJLA
Clyde Roller
WJLA
THE WHITE HOUSE
WASHINGTON
April, 1982
Nancy and I are pleased to have this
opportunity to join in saluting the White
House Photographers Association -- those
who capture the moments of history in a
most special way.
Thousands of words are written every day about
what happens in the world, but often it is
the picture that tells the story and vividly
expresses the vitality and intensity of the
moment. The professionalism and precision of
your craft makes you artists in the finest
sense of the word.
We congratulate you on providing for gener-
ations to come a very special record of
history.
Ronald Reagan
C
MEMORANDUM
#1456
THE WHITE HOUSE
WASHINGTON
March 16, 1982
ACTION
MEMORANDUM FOR THE PRESIDENT
FROM:
WILLIAM P. CLARK
SUBJECT:
March 17 Ceremony Transmitting Legislation
on the Caribbean Basin Initiative to Congress,
10:30 a.m., Cabinet Room
Issue
You will read a prepared statement (Tab A) and sign documents
transmitting the legislation on the Caribbean Basin Initiative
to the Congress. (A summary of the legislation is at Tab B.)
The session should last no more than 15 minutes and will be
attended by some 20 Administration officials, Senators and
Congressmen, along with the media and press. There may be
some questions from the press, although it is not intended
as a press opportunity. I have attached some Q's and A's
for your preparations (Tab C).
Background
The ceremony gives you another opportunity to stress the
importance of the economic aspects of our policy toward the
Caribbean Basin. After the last week of media attention on
the war in El Salvador and our policy toward Nicaragua, this
occasion enables you to bring the attention back to the
root cause of instability in the area and your unprecedented
program of trade, investment and aid measures to improve
the lives and well being of our neighbors in this region.
Recommendation
That you read the prepared statement at Tab A at the signing
ceremony tomorrow.
OK VD2
NO
Attachments
Tab A
Presidential statement
B
A summary of the legislation
C
Q's and A's
Prepared by:
Henry R. Nau
B
CARIBBEAN BASIN INITIATIVE LEGISLATION
Executive Summary
The Caribbean Basin Economic Recovery Act sets forth a series
of measures in the fields of trade, financial assistance and
investment to promote economic recovery in the Caribbean Basin
region.
Title I of the bill contains the trade measures. The
President will have the authority to eliminate for 12 years
duties on all products from those Caribbean countries that he
designates to be beneficiary countries. Exercise of this
authority will permit the United States to establish a one-way
free trade arrangement with Caribbean states. The President
cannot designate countries which are communist, have
expropriated U.S. property without compensation or failed to
enforce arbitration awards unless he determines that the
designation is in the national economic or security interest
of the United States. The President is also required in
designating countries to take into account factors such as the
country's desire to be designated, economic situation,
adherence to international trade rules, willingness to
undertake self-help measures, and record of affording rights
to workers.
The rules of origin for the free trade arrangement require
that an eligible product contain 25% minimum beneficiary
country content. Inputs from Puerto Rico and the Virgin
Islands will be treated as inputs from beneficiary countries
for purposes of satisfying the rules of origin requirements.
All products from beneficiary countries will be eligible for
duty-free treatment except textile and apparel items subject
to textile agreements. As long as an agricultural sugar price
support program is in effect, sugar imports will receive
duty-free treatment, but only up to certain limits. Sugar
imports from the Dominican Republic, Panama and Guatemala
will be subject to absolute quotas. Duty-free sugar imports
from other beneficiary countries will also be limited. The
President will have wide discretion to adjust the amount of
duty-free sugar allowed to be imported.
A domestic industry which is being injured by imports from
beneficiary countries can resort to the existing import relief
procedures and imports from beneficiary countries will be
subject to import relief measures as are other imports. When
recommending import relief, the International Trade Commission
is required to state the extent to which imports from
beneficiary countries are the cause of injury. In acting on a
recommendation to impose import relief the President will have
the flexibility to treat the withdrawal of duty-free
treatement as his only import relief measure or impose a lower
duty on products from beneficiary countries than on products
from other countries. The President will also have the
authority to review existing import relief measures and to
modify the relief for products of beneficiary countries. Upon
the recommendation of the Secretary of Agriculture, the
President can take emergency action to prevent perishable
agricultural commodities from injurying a domestic industry
pending the outcome of a normal import relief investigation.
Emergency action is limited to restoring the
most-favored-nation rate of duty on products from beneficiary
countries.
Products of the U.S. Virgin Islands and other insular
possessions will receive as favorable treatment as products
from beneficiary countries and industries in the insular
possessions can petition for import relief as can domestic
industries. In the event that the formula for distributing to
Puerto Rico and the Virgin Islands the excise taxes collected
on imported rum is changed to their detriment, the President
may consider measures to compensate them and will have the
authority to withdraw the duty-free treatment given to rum.
The bill will not affect the authority of Puerto Rico to
impose a duty on coffee imported into Puerto Rico.
Title II of the bill authorizes a supplemental appropriation
of $350 million in emergency economic assistance for Caribbean
Basin countries.
Title III contains tax measures. The regular investment tax
credit will be extended to property which is used
predominantly in a qualifying Caribbean Basin country
("Caribbean Basin Property") if that property is otherwise
eligible for the credit under present law. This benefit will
be available for five years from the date of enactment of the
bill. A beneficiary country may qualify for this benefit by
entering into a bilateral executive agreement with the United
States providing for the exchange of such information as is
necessary for carrying out the tax laws of the United States
and the other country, including information regarding
beneficial ownership of bank accounts and bearer shares. The
investment tax credit rules and limitations under present law
generally apply to Caribbean Basin property.
A five percent United States shareholder of a foreign
corporation will be allowed a pass-through of the credit with
respect to the foreign corporations's investment in Caribbean
Basin property. Generally, a pass-through credit is availible
for qualifying investment purchased with funds which may be
attributed, directly or indirectly, to equity investment of
the shareholder in the foreign corporation after the date of
enactment of the bill but is not availible for otherwise
qualifying investments acquired with funds attributed to
retained earnings or nonequity sources of funds.
The bill allows an investment tax credit and the benefits of
accelerated cost recovery (ACRS) to property used
predominately in Puerto Rico, the U.S. Virgin Islands and
other possessions which is owned or used by certain U.S.
taxpayers that are not presently allowed these benefits.
Generally U.S. corporate shareholders of such corporate
taxpayers will receive a pass-through of a portion of these
tax benefits.
The present law providing for the transfer to Puerto Rico and
the U.S. Virgin Islands of the excise tax collected on their
respective rum sales to the United States will be amended to
provide that Puerto Rico and the U.S. Virgin Islands will also
receive U.S. excise tax collections on all rum imports at a
rate per unit not greater than the rate they receive for their
own rum sales to the United States.
SUPPLEMENTAL Q's AND A's
Q:
Can you comment on newspaper allegations and charges by
the Nicaraguan government that the U.S. is engaged in
covert activities directed against the Nicaraguan government?
What about blowing up bridges?
A:
It is our policy never to comment on this kind of report.
Q:
But what about Sen. Goldwater's confirmation of the Washington
Post report on covert activities?
A:
We just aren't going to comment.
Q:
What is the military situation in El Salvador? Are we losing?
A:
The guerrillas are intent on proving to the world their
victory is inevitable. That, however, is not supported
by the facts. They can make raids; they engage in acts of
terrorism; but they can't seize and hold territory and they
can't demonstrate widespread mass support.
Q: What about the elections? Can they be held; can they be
meaningful?
-2-
A:
I believe the elections will be held despite the harrassment
of the guerrillas who believe power can be won only at the
barrel of a gun. Furthermore, it is a free election with
six parties competing, with an enormous press presence
and numerous independent election observers. The fact that
it will be a free election can be verified. We hope for
a good turnout despite the blatant intimidation of the
other side.
Q:
What if the far right -- particularly Mr. D'Aubisson's
party ARGNA wins in El Salvador?
A:
I don't predict outcomes. Our goal and the Government's
goal is a fair contest.
Q:
Do we need to globalize El Salvador as some unnamed official
suggested to the Washington Post last weekend?
A:
Secretary Haig answered that question yesterday. It is
true that El Salvador has a local, regional and global
aspect. Our policy addresses all three aspects. Solving
the problem means acting in all three areas. But it
must be made crystal clear: although the Soviets and
Cubans have interfered in Central America in an unwarranted
-3-
manner, they have by their promoting of anti-democratic
violence earned no right to join in any possible discussions.
We must, as Secretary Haig again suggested, use our influence
in each area in order to find a solution.
Q:
What are the next steps concerning the Mexican peace
initiative since the Haig-Castaneda meeting?
A:
We are looking forward to further talks with the Mexicans
and others. We are always willing to consider any suggestions
that might improve chances for peace.
Q:
Do Nicaraguans have any reason to fear U.S. attacks or
aggression?
A:
We have made our position known to the Nicaraguans
and we are prepared to seriously discuss matters of
mutual interest with Nicaragua whenever they are ready.
Q.
Why is the Caribbean Basin being singled out for
special attention?
A.
Because many Caribbean and Central American
countries, which together make up our third border,
face an economic crisis of unprecedented dimensions.
They cannot cope with it alone. The situation is
deteriorating rapidly, contributing to political
instability and creating fresh openings for our
adversaries.
The Caribbean is too close and too important
for us to stand by while misery and conflict grow
and spill over. This is our neighborhood. We cannot
move out. These are our neighbors. We cannot turn
our back on them.
The situation is so grave and so urgent that
it demands an immediate U.S. response. I am counting
on you, the leaders of our Congress, to insure rapid
action on our legislative package.
Q.
Mr. President, is this program adequate to do the
job, or is it just another example of "too little,
too late?"
A.
The economic crisis facing the Caribban Basin region
is of major proportions. Thus, I have proposed a major
and comprehensive response. Perhaps the greatest enemy
of the peoples of the region is despair, for it leaves
them vulnerable to extremist appeals, violence and external
exploitation. The most important weapon we can provide
is hope, born out of the conviction that someone cares and
is prepared to help them meet this crisis.
This is one reason why it is critical that the
Congress approve the CBI legislation quickly. Rapid
Congressional action will provide an immense psychological
boost to the peoples and governments of the region. It will
demonstrate to our friends worldwide that we are prepared
to throw out a life line when our neighbors are sinking.
When added to what others can be expected to do to help,
the major steps I have proposed will do the job.
Q.
Can you tell us something about the international
reaction to the President's proposed Caribbean Basin
proposals?
A.
The reaction has been very positive. Within
the Caribbean Basin, comments from potential recipients
have been overwhelmingly favorable. Government
leaders from Jamaica, Dominica, St. Lucia, Belize,
Antigua and Barbuda, Costa Rica, Honduras, El Salvador,
the Dominican Republic, Panama, and elsewhere have
made public statements praising the program.
Canada, Mexico and Venezuela, our "Nassau Four"
partners, have generally welcomed our economic program.
Many of our European and Asian allies privately
have welcomed the U.S. economic program. But I'll
let them speak for themselves.
Q. Are Cuba, Nicaragua and Grenada eligible to participate
in the CBI?
A.
As I said in my speech February 24, we seek
to exclude no one. Those who accept and practice
the traditions and common values of this hemisphere
are welcome. The benefits of the free trade and
investment provisions can only be realized in practice
by those countries which accept the role of a strong
private sector. The usual criteria governing eligibility
for trade preferences and assistance will apply.
We will be discussing with each country their eligibility
under these criteria.
The Castro government has excluded itself from
participation in the U.S. program with its imposition
of a Communist system on Cuba and elimination of
the private sector; through an aggressive policy
of active support for violent extremists in Latin
America; and by its failure to compensate U.S. firms
expropriated after Castro came to power.
Let me make one thing clear. The CBI is not
aimed at Cuba specifically. But by promoting economic
development and peaceful political evolution, it
helps inoculate the region against Cuban terrorism
and Cuban-supported insurgency.
Q:
What about security assistance for the Caribbean
Basin?
A:
I believe it is in our national interest to
help governments threatened with aggression from
outside their borders to defend themselves. As
I said in my speech of February 24, I shall be asking
the Congress to provide increased security assistance
to help friendly countries protect themselves against
those who would destroy their chances for economic
and social progress and political democracy. The
request for additional security assistance will
be forwarded to the Congress separately.
Q.
Is the Caribbean Basin Initiative just a cover for
increased military assistance to El Salvador?
A.
Most assuredly not. From the very beginning
of my Administration, we have been discussing with
Mexico, Canada, and Venezuela and then with other
countries in the Caribbean and Central America how
we might best address the urgent economic crisis
in the region. It was in consultation with other
donors and with recipient countries that we drew
up the Caribbean Basin Initiative.
There is, of course, concurrently a security
threat to the region stemming from Cuban and Nicaraguan
efforts to subvert governments in the region. Security
problems have aggravated the economic crises in
Central America. The United States must and will
respond to this security threat as well. But, we
will not follow Cuba's lead in seeking to resolve
human problems by brute force. Our economic assistance
is more than five times our security assistance
to the area.
Q
How will the free trade provided by this legislation
affect U.S. working people?
A:
First, the Caribbean Basin -- even taken as a
whole -- is very small economically when compared
to our market. Secondly, these countries will
need some time to expand their productive and
export capacity. We therefore expect that their
exports to us will not grow explosively -- but
gradually. For these two reasons, I believe
there is little likelihood of disruption in our
economy.
However, in the unlikely event that our industries
or workers are threatened with injury from Caribbean
Basin exports, there is a safeguard mechanism.
We can reimpose duties in those cases.
Q:
Shouldn't we exclude from the free trade
arrangement those industries where U.S. workers
could be hurt -- for example, shoes and other
leather products?
A:
We must avoid excluding products or sectors.
What gives this program impact is that it is
comprehensive -- and therefore simple. That
is a powerful stimulus to investment by both
local and foreign businessmen. The simple
comprehensive approach is essential to demonstrate
our real concern for these small neighboring
countries.
Once we start down the road of exclusions, where
would we stop? Almost every industry will argue
that it needs duties.
We have a safeguard system for those cases where
our industries are hurt by imports. Let's rely
on that, rather than exclusions, to protect our
workers and industries.
MEMORANDUM
#1456
THE WHITE HOUSE
WASHINGTON
March 16, 1982
ACTION
MEMORANDUM FOR THE PRESIDENT
FROM:
WILLIAM P. CLARK
wpo
SUBJECT:
March 17 Ceremony Transmitting Legislation
on the Caribbean Basin Initiative to Congress,
10:30 a.m., Cabinet Room
Issue
You will read a prepared statement (Tab A) and sign documents
transmitting the legislation on the Caribbean Basin Initiative
to the Congress. (A summary of the legislation is at Tab B.)
The session should last no more than 15 minutes and will be
attended by some 20 Administration officials, Senators and
Congressmen, along with the media and press. There may be
some questions from the press, although it is not intended
as a press opportunity. I have attached some Q's and A's
for your preparations (Tab C).
Background
The ceremony gives you another opportunity to stress the
importance of the economic aspects of our policy toward the
Caribbean Basin. After the last week of media attention on
the war in El Salvador and our policy toward Nicaragua, this
occasion enables you to bring the attention back to the
root cause of instability in the area and your unprecedented
program of trade, investment and aid measures to improve
the lives and well being of our neighbors in this region.
Recommendation
That you read the prepared statement at Tab A at the signing
ceremony tomorrow.
OK
NO
Attachments
Tab A
Presidential statement
B
A summary of the legislation
C
Q's and A's
Prepared by:
Henry R. Nau
PRESIDENT'S STATEMENT ON CBI TO CONGRESSIONAL LEADERS
Two weeks ago in an address to the OAS, I presented
a comprehensive proposal designed to help the peoples
of the Caribbean Basin cope with a crisis of unprecedented
proportions. Today I am transmitting this plan to Congress.
The well-being and security of our Caribbean Basin
neighbors are in our own vital interest.
Today, both their economic well-being and security are
threatened. Economic disaster is consuming our neighbors'
money reserves and credit, forcing thousands of people
to emigrate, and threatening even the most established
democracies. Extremist groups and violent minorities are
exploiting this economic misery to gain new footholds in
this hemisphere. If we do not act now, the dangers will
grow. New Cubas will arise. The costs of ensuring our
security to the south will escalate.
The plan I am offering today addresses the underlying
economic crisis that offers opportunities to the foes of
freedom. Our program, like the crisis itself, is unprece-
dented and consists of mutually-reinforcing measures in
the fields of trade, investment, and financial assistance.
The package is a balanced one, and every component is
essential. It is not foreign aid as usual but a program
that is based on unique American practices that we know work.
It will support our neighbors' efforts to achieve economic
progress, political democracy, social justice and freedom
from outside intervention. By encouraging a more productive
and dynamic private sector, it will develop the jobs, goods
and services which the people of the Basin need for a better
life.
This is our contribution. Others in this hemisphere
are also increasing theirs. Our willingness to act boldly
has been a catalyst. Earlier this week Al Haig and Bill
Brock met with the Ministers of Colombia, Mexico, Venezuela
and Canada to discuss programs. These countries are making
substantial contributions. Colombia which is itself a
developing country is increasing trade credits, balance of
payments swaps and technical assistance, and will extend
trade preferences. Canada will more than double its assis-
tance. Mexico and Venezuela, in addition to the $700 million
a year oil facility, are increasing other programs including
trade preferences. Our countries agreed jointly to ask the
Europeans and Japan to pitch in too. We'll be meeting
with them soon.
I am acutely conscious that we ourselves are going
through a period of economic difficulty. I would not
propose this program if I were not convinced that it is
in our vital national interest. The economies of these
- 2 -
countries are small; the impact of the trade measures will
develop slowly. Every protection available to U.S. industry
and labor against disruptive imports will remain.
The crisis in the Caribbean Basin is not a partisan
issue. I urge the Congress to move with maximum speed.
Your leadership will be crucial. Our security cannot wait.
CARIBBEAN BASIN INITIATIVE LEGISLATION
Executive Summary
The Caribbean Basin Economic Recovery Act sets forth a series
of measures in the fields of trade, financial assistance and
investment to promote economic recovery in the Caribbean Basin
region.
Title I of the bill contains the trade measures. The
President will have the authority to eliminate for 12 years
duties on all products from those Caribbean countries that he
designates to be beneficiary countries. Exercise of this
authority will permit the United States to establish a one-way
free trade arrangement with Caribbean states. The President
cannot designate countries which are communist, have
expropriated U.S. property without compensation or failed to
enforce arbitration awards unless he determines that the
designation is in the national economic or security interest
of the United States. The President is also required in
designating countries to take into account factors such as the
country's desire to be designated, economic situation,
adherence to international trade rules, willingness to
undertake self-help measures, and record of affording rights
to workers.
The rules of origin for the free trade arrangement require
that an eligible product contain 25% minimum beneficiary
country content. Inputs from Puerto Rico and the Virgin
Islands will be treated as inputs from beneficiary countries
for purposes of satisfying the rules of origin requirements.
All products from beneficiary countries will be eligible for
duty-free treatment except textile and apparel items subject
to textile agreements. As long as an agricultural sugar price
support program is in effect, sugar imports will receive
duty-free treatment, but only up to certain limits. Sugar
imports from the Dominican Republic, Panama and Guatemala
will be subject to absolute quotas. Duty-free sugar imports
from other beneficiary countries will also be limited. The
President will have wide discretion to adjust the amount of
duty-free sugar allowed to be imported.
A domestic industry which is being injured by imports from
beneficiary countries can resort to the existing import relief
procedures and imports from beneficiary countries will be
subject to import relief measures as are other imports. When
recommending import relief, the International Trade Commission
is required to state the extent to which imports from
beneficiary countries are the cause of injury. In acting on a
recommendation to impose import relief the President will have
the flexibility to treat the withdrawal of duty-free
treatement as his only import relief measure or impose a lower
duty on products from beneficiary countries than on products
from other countries. The President will also have the
authority to review existing import relief measures and to
modify the relief for products of beneficiary countries. Upon
the recommendation of the Secretary of Agriculture, the
President can take emergency action to prevent perishable
agricultural commodities from injurying a domestic industry
pending the outcome of a normal import relief investigation.
Emergency action is limited to restoring the
most-favored-nation rate of duty on products from beneficiary
countries.
Products of the U.S. Virgin Islands and other insular
possessions will receive as favorable treatment as products
from beneficiary countries and industries in the insular
possessions can petition for import relief as can domestic
industries. In the event that the formula for distributing to
Puerto Rico and the Virgin Islands the excise taxes collected
on imported rum is changed to their detriment, the President
may consider measures to compensate them and will have the
authority to withdraw the duty-free treatment given to rum.
The bill will not affect the authority of Puerto Rico to
impose a duty on coffee imported into Puerto Rico.
Title II of the bill authorizes a supplemental appropriation
of $350 million in emergency economic assistance for Caribbean
Basin countries.
Title III contains tax measures. The regular investment tax
credit will be extended to property which is used
predominantly in a qualifying Caribbean Basin country
("Caribbean Basin Property") if that property is otherwise
eligible for the credit under present law. This benefit will
be available for five years from the date of enactment of the
bill. A beneficiary country may qualify for this benefit by
entering into a bilateral executive agreement with the United
States providing for the exchange of such information as is
necessary for carrying out the tax laws of the United States
and the other country, including information regarding
beneficial ownership of bank accounts and bearer shares. The
investment tax credit rules and limitations under present law
generally apply to Caribbean Basin property.
A five percent United States shareholder of a foreign
corporation will be allowed a pass-through of the credit with
respect to the foreign corporations's investment in Caribbean
Basin property. Generally, a pass-through credit is availible
for qualifying investment purchased with funds which may be
attributed, directly or indirectly, to equity investment of
the shareholder in the foreign corporation after the date of
enactment of the bill but is not availible for otherwise
qualifying investments acquired with funds attributed to
retained earnings or nonequity sources of funds.
The bill allows an investment tax credit and the benefits of
accelerated cost recovery (ACRS) to property used
predominately in Puerto Rico, the U.S. Virgin Islands and
other possessions which is owned or used by certain U.S.
taxpayers that are not presently allowed these benefits.
Generally U.S. corporate shareholders of such corporate
taxpayers will receive a pass-through of a portion of these
tax benefits.
The present law providing for the transfer to Puerto Rico and
the U.S. Virgin Islands of the excise tax collected on their
respective rum sales to the United States will be amended to
provide that Puerto Rico and the U.S. Virgin Islands will also
receive U.S. excise tax collections on all rum imports at a
rate per unit not greater than the rate they receive for their
own rum sales to the United States.
SUPPLEMENTAL Q's AND A's
Q:
Can you comment on newspaper allegations and charges by
the Nicaraguan government that the U.S. is engaged in
covert activities directed against the Nicaraguan government?
What about blowing up bridges?
A:
It is our policy never to comment on this kind of report.
Q:
But what about Sen. Goldwater's confirmation of the Washington
Post report on covert activities?
A:
We just aren't going to comment.
Q:
What is the military situation in El Salvador? Are we losing?
A: The guerrillas are intent on proving to the world their
victory is inevitable. That, however, is not supported
by the facts. They can make raids; they engage in acts of
terrorism; but they can't seize and hold territory and they
can't demonstrate widespread mass support.
Q:
What about the elections? Can they be held; can they be
meaningful?
--2-
A: 'I believe the elections will be held despite the harrassment
of the guerrillas who believe power can be won only at the
barrel of a gun. Furthermore, it is a free election with
six parties competing, with an enormous press presence
and numerous independent election observers. The fact that
it will be a free election can be verified. We hope for
a good turnout despite the blatant intimidation of the
other side.
::
What if the far right -- particularly Mr. D'Aubisson's
party ARGNA wins in El Salvador?
A:
I don't predict outcomes. Our goal and the Government's
goal is a fair contest.
Q:
Do we need to globalize El Salvador as some unnamed official
suggested to the Washington Post last weekend?
A:
Secretary Haig answered that question yesterday. It is
true that El Salvador has a local, regional and global
aspect. Our policy addresses all three aspects. Solving
the problem means acting in all three areas. But it
must be made crystal clear: although the Soviets and
Cubans have interfered in Central America in an unwarranted
-3-
manner, they have by their promoting of anti-democratic
violence earned no right to join in any possible discussions.
We must, as Secretary Haig again suggested, use our influence
in each area in order to find a solution.
Q:
What are the next steps concerning the Mexican peace
initiative since the Haig-Castaneda meeting?
A:
We are looking forward to further talks with the Mexicans
and others. We are always willing to consider any suggestions
that might improve chances for peace.
Q:
Do Nicaraguans have any reason to fear U.S. attacks or
aggression?
A:
We have made our position known to the Nicaraguans
and we are prepared to seriously discuss matters of
mutual interest with Nicaragua whenever they are ready.
Q.
Why is the Caribbean Basin being singled out for
special attention?
A.
Because many Caribbean and Central American
countries, which together make up our third border,
face an economic crisis of unprecedented dimensions.
They cannot cope with it alone. The situation is
deteriorating rapidly, contributing to political
instability and creating fresh openings for our
adversaries.
The Caribbean is too close and too important
for us to stand by while misery and conflict grow
and spill over. This is our neighborhood. We cannot
move out. These are our neighbors. We cannot turn
our back on them.
The situation is SO grave and so urgent that
it demands an immediate U.S. response. I am counting
on you, the leaders of our Congress, to insure rapid
action on our legislative package.
Q.
Mr. President, is this program adequate to do the
job, or is it just another example of "too little,
too late?"
A.
The economic crisis facing the Caribban Basin region
is of major proportions. Thus, I have proposed a major
and comprehensive response. Perhaps the greatest enemy
of the peoples of the region is despair, for it leaves
them vulnerable to extremist appeals, violence and external
exploitation. The most important weapon we can provide
is hope, born out of the conviction that someone cares and
is prepared to help them meet this crisis.
This is one reason why it is critical that the
Congress approve the CBI legislation quickly. Rapid
Congressional action will provide an immense psychological
boost to the peoples and governments of the region. It will
demonstrate to our friends worldwide that we are prepared
to throw out a life line when our neighbors are sinking.
When added to what others can be expected to do to help,
the major steps I have proposed will do the job.
Q.
Can you tell us something about the international
reaction to the President's proposed Caribbean Basin
proposals?
A.
The reaction has been very positive. Within
the Caribbean Basin, comments from potential recipients
have been overwhelmingly favorable. Government
leaders from Jamaica, Dominica, St. Lucia, Belize,
Antigua and Barbuda, Costa Rica, Honduras, El Salvador,
the Dominican Republic, Panama, and elsewhere have
made public statements praising the program.
Canada, Mexico and Venezuela, our "Nassau Four"
partners, have generally welcomed our economic program.
Many of our European and Asian allies privately
have welcomed the U.S. economic program. But I'll
let them speak for themselves.
Q.
Are Cuba, Nicaragua and Grenada eligible to participate
in the CBI?
A.
As I said in my speech February 24, we seek
to exclude no one. Those who accept and practice
the traditions and common values of this hemisphere
are welcome. The benefits of the free trade and
investment provisions can only be realized in practice
by those countries which accept the role of a strong
private sector. The usual criteria governing eligibility
for trade preferences and assistance will apply.
We will be discussing with each country their eligibility
under these criteria.
The Castro government has excluded itself from
participation in the U.S. program with its imposition
of a Communist system on Cuba and elimination of
the private sector; through an aggressive policy
of active support for violent extremists in Latin
America; and by its failure to compensate U.S. firms
expropriated after Castro came to power.
Let me make one thing clear. The CBI is not
aimed at Cuba specifically. But by promoting economic
development and peaceful political evolution, it
helps inoculate the region against Cuban terrorism
and Cuban-supported insurgency.
Q:
What about security assistance for the Caribbean
Basin?
A:
I believe it is in our national interest to
help governments threatened with aggression from
outside their borders to defend themselves. As
I said in my speech of February 24, I shall be asking
the Congress to provide increased security assistance
to help friendly countries protect themselves against
those who would destroy their chances for economic
and social progress and political democracy. The
request for additional security assistance will
be forwarded to the Congress separately.
Q.
Is the Caribbean Basin Initiative just a cover for
increased military assistance to El Salvador?
A.
Most assuredly not. From the very beginning
of my Administration, we have been discussing with
Mexico, Canada, and Venezuela and then with other
countries in the Caribbean and Central America how
we might best address the urgent economic crisis
in the region. It was in consultation with other
donors and with recipient countries that we drew
up the Caribbean Basin Initiative.
There is, of course, concurrently a security
threat to the region stemming from Cuban and Nicaraguan
efforts to subvert governments in the region. Security
problems have aggravated the economic crises in
Central America. The United States must and will
respond to this security threat as well. But, we
will not follow Cuba's lead in seeking to resolve
human problems by brute force. Our economic assistance
is more than five times our security assistance
to the area.
Q
How will the free trade provided by this legislation
affect U.S. working people?
A:
First, the Caribbean Basin -- even taken as a
whole -- is very small economically when compared
to our market. Secondly, these countries will
need some time to expand their productive and
export capacity. We therefore expect that their
exports to us will not grow explosively -- but
gradually. For these two reasons, I believe
there is little likelihood of disruption in our
economy.
However, in the unlikely event that our industries
or workers are threatened with injury from Caribbean
Basin exports, there is a safeguard mechanism.
We can reimpose duties in those cases.
Q:
Shouldn't we exclude from the free trade
arrangement those industries where U.S. workers
could be hurt -- for example, shoes and other
leather products?
A: We must avoid excluding products or sectors.
What gives this program impact is that it is
comprehensive -- and therefore simple. That
is a powerful stimulus to investment by both
local and foreign businessmen. The simple
comprehensive approach is essential to demonstrate
our real concern for these small neighboring
countries.
Once we start down the road of exclusions, where
would we stop? Almost every industry will argue
that it needs duties.
We have a safeguard system for those cases where
our industries are hurt by imports. Let's rely
on that, rather than exclusions, to protect our
workers and industries.
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MEMORANDUM
THE WHITE HOUSE
WASHINGTON
March 17, 1982
FOR:
DAVE FISCHER
FROM:
M. B. OGLESBY
JR.
PAMELA TURNER
SUBJECT: Ceremony to Forward to the Congress Caribbean
Basin Initiative Legislation and Accompanying
Presidential Message, March 17, 1982
The following list reflects attendance at the 10:30 a.m.
Ceremony today in the Roosevelt Room:
The President
Alexander Haig, Secretary of State
Malcolm Baldrige, Secretary of Commerce
William Brock, United States Trade Representative
Peter McPherson, Administrator, Agency for International Development
Thomas Enders, Assistant Secretary of State for Inter-American Affairs
The Governor of Puerto Rico
Senate
Jesse Helms (R-North Carolina)
Edward Zorinsky (D-Nebraska)
House
William Broomfield (R-Michigan)
Robert Lagomarsino (R-California)
Michael D. Barnes (D-Maryland)
Clarence Long (D-Maryland)
Baltasar Corrada (Resident Commissioner-Puerto Rico)
THE WHITE HOUSE
WASHINGTON
March 13, 1982
CEREMONY TO FORWARD TO THE CONGRESS
CARIBBEAN BASIN INITIATIVE LEGISLATION
AND ACCOMPANYING PRESIDENTIAL MESSAGE
DATE:
Wednesday, March 17, 1982
LOCATION:
The Cabinet Room
TIME:
10:30-10:45 (15 minutes)
FROM:
Kenneth M. Duberstein
FMD
I.
PURPOSE
To emphasize formal transmittal of the Administration's Caribbean
Basin Initiative legislation and accompanying Presidential message,
and to recognize the key Administration officials and Members of
the Congress who are involved in this effort.
II.
BACKGROUND
On February 24, in a speech to the Organization of American States,
the President outlined a bold and extensive proposal for assisting
nations of the Caribbean Basin through enhanced trade, investment,
economic and security assistance. Prior to the President's speech,
extensive briefings were held for the Congressional bipartisan
leadership and other interested members of the House and Senate
here at the White House.
The legislation and Presidential message are ready to be sent to
the Congress. Briefings are being conducted with the relevant
committee chairmen and staff and members of the Leadership in the
House and Senate. Many of the jurisdictional committees have
indicated an interest in holding hearings soon after receipt of
the legislation. The Ways and Means Subcommittee on Trade has ten-
tatively scheduled a hearing on the legislation in the late morning
or afternoon of the 17th. Overall reaction by the Congress to the
Caribbean proposal has been encouraging.
The genesis of the Caribbean Basin Initiative goes back to the
President's campaign pledge to forge a stronger partnership among
our North American neighbors. Working cooperatively with Canada,
Mexico and Venezuela, the United States will provide economic and
security assistance, trade incentives and encouragement for private
sector growth designed to promote economic and political stability
in the nations of the Caribbean Basin and Central America.
III. PARTICIPANTS
List Attached
2
IV.
PRESS PLAN
Press pool
White House photographer
V.
SEQUENCE OF EVENTS
Administration officials and Members of Congress to stand behind
the President.
: 30-10:40
Presidential remarks
10:40-10:45
Formal signing of Presidential
Message and individual expressions
of appreciation to Members of
Congress
Attachments:
Presidential Remarks
Participants List
ATTACHMENT
The President
The Vice President
Alexander Haig, Secretary of State
Malcolm Baldrige, Secretary of Commerce
William Brock, United States Trade Representative
Peter McPherson, Administrator, Agency for International Development
Tom Enders, Assistant Secretary of State for InterAmerican Affairs
SENATE
Bentsen, Lloyd (D-Texas)
Byrd, Robert D. (D-West Virginia)
Dole, Robert (R-Kansas)
Hatfield, Mark O. (R-Oregon)
Helms, Jesse (R-North Carolina)
Zorinsky, Edward (D-Nebraska)
Regrets: Baker, Howard H., Jr. (R-Tennessee)
Danforth, John D. (R-Missouri)
Inouye, Daniel K. (D-Hawaii)
Kasten, Robert W., Jr. (R-Wisconsin)
Long, Russell B. (D-Louisiana)
Pell, Claiborne (D-Rhode Island)
Percy, Charles H. (R-Illinois)
Proxmire, William (D-Wisconsin)
HOUSE
Barnes, Michael D. (D-Maryland)
Broomfield, William S. (R-Michigan)
Conte, Silvio O. (R-Massachusetts)
Corrada, Baltsar (D-Puerto Rico)
Gibbons, Sam M. (D-Florida)
Lagomarsino, Robert J. (R-California)
Long, Clarence D. (D-Maryland)
Vander Jagt, Guy (R-Michigan)
Whitten, Jamie L. (D-Mississippi)
Zablocki, Clement J. (D-Wisconsin)
Regrets: Bingham, Jonathan B. (D-New York)
Conable, Barber B. (R-New York)
Gilman, Benjamin A. (R-New York)
Kemp, Jack (R-New York)
Michel, Robert H. (R-Illinois)
O'Neill, Thomas P., Jr. (D-Massachusetts)
Rostenkowski, Dan (D-Illinois)
Wright, Jim (D-Texas)
De Lugo, Ron (D-Virgin Islands)
ATTACHMENT
2
PARTICIPANTS (continued)
Staff
Edwin Meese, III
James Baker, III
Michael Deaver
William Clark
Richard Darman
Ken Duberstein
Pamela J. Turner
M. B. Oglesby, Jr.
John Dressendorfer