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135838626
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Cabinet Meetings [Notes] (February 1981)
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135838626
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Cabinet Meetings [Notes] (February 1981)
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Records of the White House Office of Speechwriting (Reagan Administration)
Kenneth L. Khachigian's Meeting Files
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Ronald Reagan Presidential Library Digital Library Collections This is a PDF of a folder from our textual collections. Collection: Khachigian, Kenneth L.: Files Folder Title: Cabinet Meetings [Notes] (February 1981) Box: 1 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 National Archives Catalogue: https://catalog.archives.gov/ WITHDRAWAL SHEET Ronald Reagan Library Collection: KHACHIGIAN, KEN: Files Archivist: ggc d/b File Folder: Cabinet Meetings (2 of3) Box 4689 [Notes] (February 1981) Boxl Date: 5/13/97 redo 10/24/06 DOCUMENT SUBJECT/TITLE DATE RESTRICTION NO. AND TYPE 44 Notes handwritten notes by Ken Khachigian re Cabinet 2/13/81 P5 Meetings (3 pp) / of Notes handwritten notes by Ken Khachigian re Cabinet 2/4/81 P5,Pt 81 Meetings (7 pp.) 2 B. Memo from L. Paul Bremer to Craig Fuller re Burden of, 2/3/81 F5 Proof for Statutory Validity of Regulations (2 pp.) 3 4. Memo from James Edwards to Craig Fuller re Burden of 2/3/81 -P5- Proof for Statutory Validity of Regulations (1p) 5. Notes handwritten notes by Ken Khachigian re Cabinet 1/26/81 P5,Pt BI Meeting (4 pp.) 6. Notes handwritten notes by Ken Khachigian re Cabinet 1/24/81 P5,P1- BI Meeting (7 pp.) 7 Notes handwritten notes by Ken Khachigian re Cabinet 1/23/81 -P5 Meeting 67 pp.) 8. Notes handwritten notes by Ken Khachigian re Cabinet 1/22/81 PSBb Bb Meeting (12 pp) partial P.ID B. CCB 11/29/00 RESTRICTION CODES Presidential Records Act- [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National security classified information [(a)(1) of the PRA]. F-1 National security classified information [(b)(1) of the FOIA]. P-2 Relating to appointment to Federal office [(a)(2) of the PRAJ. F-2 Release could disclose internal personnel rules and practices of an agency [(b)(2) of the P-3 Release would violate a Federal statute [(a)(3) of the PRA]. FOIA]. P-4 Release would disclose trade secrets or confidential commercial or financial information F-3 Release would violate a Federal statue [(b)(3) of the FOIA}. [(a)(4) of the PRA]. F-4 Release would disclose trade secrets or confidential commercial or financial information P-5 Release would disclose confidential advice between the President and his advisors, or [(b)(4) of the FOIA]. between such advisors [(a)(5) of the PRA]. F-6 Release would constitute a clearly unwarranted invasion of personal privacy ((b)(6) of the P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(a)(6) of FOIA]. the PRA]. F-7 Release would disclose information compiled for law enforcement purposes ((b)(7) of the FOIA]. C. Closed in accordance with restrictions contained in donor's deed of gift. F-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA]. F-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of the FOIA]. WITHDRAWAL SHEET Ronald Reagan Library Collection: KHACHIGIAN, KEN: Files Archivist: ggc dlb (Notes) (F-Druary 1781) redo File Folder: Cabinet Meetings (Lof 3) Box 4689 Date: 5/13/97 Boxl 10/24/04 DOCUMENT SUBJECT/TITLE DATE RESTRICTION NO. AND TYPE 1. Notes handwritten notes by Ken Khachiglan re Cabinet 4/24/81 P5 Meeting (8 pp.) 2. Notes handwritten notes by Ken Khachigian re Cabinet 4/16/81 P5 Meeting (2 pp 3. Notes handwritten notes by Ken Khachigian re Cabinet 4/2/81 P5,P1 BI Meetings (4 pp.) 4. Notes handwritten notes by Ken Khachigian re Cabinet 3/19/81 P5- B6 Meeting (5pp.) pantial; p.5, AID 5. Notes handwritten notes by Ken Khachigian re Cabinet 3/13/81 P5 Meeting (2 pp 6. Notes handwritten notes by Ken Khachigian re Cabinet 3/5/81 PS Meeting (4 pp.) Notes handwritten notes by Ken Khachigian re Cabinet 2/26/81 P5 5 Meeting (4 pp.) (a3 11/29/00 RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of information Act [5 U.S.C. 552(b)] P-1 National security classified information [(a)(1) of the PRA]. P-2 Relating to appointment to Federal office [(a)(2) of the PRA]. F-1 National security classified information [(b)(1) of the FOIA]. P-3 Release would violate a Federal statute [(a)(3) of the PRA]. F-2 Release could disclose internal personnel rules and practices of an agency [(b)(2) of the FOIA]. P-4 Release would disclose trade secrets or confidential commercial or financial information [(a)(4) of the PRA]. F-3 Release would violate a Federal statue [(b)(3) of the FOIA]. P-5 Release would disclose confidential advice between the President and his advisors, or F-4 Release would disclose trade secrets or confidential commercial or financial information [(b)(4) of the FOIA]. between such advisors [(a)(5) of the PRA]. P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(a)(6) of F-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA]. the PRA]. F-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA]. C. Closed in accordance with restrictions contained in donor's deed of gift F-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA]. F-9 Release would disclose geological or geophysical information concerning wells ((b)(9) of the FOIA]. WITHDRAWAL SHEET Ronald Reagan Library Collection: KHACHIGIAN, KEN: Files Archivist:- gge db [Notes] (February 4689 1981) redo File Folder: Cabinet Meetings (2 of 3) Box Date: 5/13/97 10/24/06 Box / DOCUMENT SUBJECT/TITLE DATE RESTRICTION NO. AND TYPE 4 K. Notes handwritten notes by Ken Khachigian re Cabinet 2/13/81 P5 Meetings (3 pp) / 76. Notes handwritten notes by Ken Khachigian re Cabinet 2/4/81 P5, P1 Meetings (7 pp.) 2 bs. Memo from L. Paul Bremer to Craig Fuller re Burden of 2/3/81 P5 Proof for Statutory Validity of Regulations (2 pp.) 3 4. Memo from James Edwards to Craig Fuller re Burden of 2/3/81 P5 Proof for Statutory Validity of Regulations (1p) 5. Notes handwritten notes by Ken Khachigian re Cabinet 1/26/81 P5, P1 Meeting (4 pp.) 6. Notes handwritten notes by Ken Khachigian re Cabinet 1/24/81 P5, P1 Meeting (7 pp.) 7. Notes handwritten notes by Ken Khachigian re Cabinet 1/23/81 PS Meeting (7 pp.) 8. Notes handwritten notes by Ken Khachigian re Cabinet 1/22/81 P5 Meeting (12 pp) RESTRICTION CODES Presidential Records Act- [44 U.S.C. 2204(a)] Freedom of Information Act- [5 U.S.C. 552(b)] P-1 National security classified information [(a)(1) of the PRA]. F-1 National security classified information [(b)(1) of the FOIA]. P-2 Relating to appointment to Federal office [(a)(2) of the PRA]. F-2 Release could disclose internal personnel rules and practices of an agency [(b)(2) of the P-3 Release would violate a Federal statute [(a)(3) of the PRA]. FOIA]. P-4 Release would disclose trade secrets or confidential commercial or financial information F-3 Release would violate a Federal statue ((b)(3) of the FOIA]. [(a)(4) of the PRAJ. F-4 Release would disclose trade secrets or confidential commercial or financial information P-5 Release would disclose confidential advice between the President and his advisors, or [(b)(4) of the FOIA]. between such advisors [(a)(5) of the PRA]. F-8 Release would constitute a clearly unwarranted invasion of personal privacy ((b)(6) of the P-8 Release would constitute a clearly unwarranted invasion of personal privacy [(a)(6) of FOIA]. the PRAJ. F-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA]. C. Closed in accordance with restrictions contained in donor's deed of gift. F-8 Release would disclose information concerning the regulation of financial institutions ((b)(8) of the FOIA]. F-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of the FOIA]. WITHDRAWAL SHEET Ronald Reagan Library Collection: KHACHIGIAN, KEN: Files Archivist: ggc dlb [Notes] (February 1981) Boxl redo File Folder: Cabinet Meetings (1 of 3) Box Date: 5/13/97 10/24/06 DOCUMENT SUBJECT/TITLE DATE RESTRICTION NO. AND TYPE 1. Notes handwritten notes by Ken Khachigian fe Cabinet 4/24/81 P5 Meeting (8 pp.) 2. Notes handwritten notes by Ken Khachigian re Cabinet 4/16/81 P5 Meeting (2 pp.) 3. Notes handwritten notes by Ken Khachigian re Cabinet 4/2/81 P5, P1 Meetings (4 pp.) 4. Notes handwritten notes by Ken Khachigian re Cabinet 3/19/81 P5 Meeting (5 pp.) 5. Notes handwritten notes by Ken Khachigian re Cabinet 3/13/81 P5 Meeting (2 pp.) 6. Notes handwritten notes by Ken Khachigian re Cabinet 3/5/81 P5 Meeting (4 pp.) 7. Notes handwritten notes by Ken Khachigian re Cabinet 2/26/81 P5 Meeting (4 pp.) RESTRICTION CODES Presidential Records Act [44 U.S.C. 2204(a)] Freedom of Information Act [5 U.S.C. 552(b)] P-1 National security classified information [(a)(1) of the PRA]. F-1 National security classified information [(b)(1) of the FOIA]. P-2 Relating to appointment to Federal office [(a)(2) of the PRA]. F-2 Release could disclose internal personnel rules and practices of an agency [(b)(2) of the P-3 Release would violate a Federal statute [(a)(3) of the PRA]. FOIA]. P-4 Release would disclose trade secrets or confidential commercial or financial information F-3 Release would violate a Federal statue [(b)(3) of the FOIA]. [(a)(4) of the PRA]. F-4 Release would disclose trade secrets or confidential commercial or financial information P-5 Release would disclose confidential advice between the President and his advisors, or [(b)(4) of the FOIA]. between such advisors [(a)(5) of the PRA]. F-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(a)(6) of FOIA] the PRAJ. F-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA]. C. Closed in accordance with restrictions contained in donor's deed of gift F-8 Release would disclose information concerning the regulation of financial institutions ((b)(8) of the FOIA]. F-9 Release would disclose geological or geophysical information concerning wells ((b)(9) of the FOIA]. RONALD W. REAGAN LIBRARY THIS FORM MARKS THE FILE LOCATION OF ITEM NUMBER / LISTED ON THE WITHDRAWAL SHEET AT THE FRONT OF THIS FOLDER. THE WHITE HOUSE WASHINGTON February 4, 1981 MEMORANDUM FOR: CABINET MEETING PARTICIPANTS February 4, 1981 Meeting FROM: CRAIG DIRECTOR L. FULLER as OFFICE OF CABINET ADMINISTRATION SUBJECT: Supplemental Views on Burden of Proof for Statutory Validity of Regulations The attached views pertain to Agenda Item #2 but were received too late to be included in the binders. Attachment S/S 8103122 DEPARTMENT OF STATE Washington, D.C. 20520 February 3, 1981 MEMORANDUM TO: Mr. Craig L. Fuller Director Office of Cabinet Administration FROM: S/S - L. Paul Bremer, III SUBJECT: Burden of Proof for Statutory Validity of Regulations Secretary Schweiker has proposed that a new Executive Order on regulations include provisions to shift to the government the burden of proof that regulations are author- ized by statute and justified by the facts. The Department of State is not greatly affected by this proposal as it establishes relatively few regulations binding on the public, notably passport and munitions con- trol regulations. We offer, therefore, only a few brief observations: (1) The Department supports efforts to make agencies more responsive to the public and to discourage the proliferation of regulations. (2) We have doubts, however, about techniques that rely on challenges to agency actions in the courts as an instrument of reform. Our experience with the Freedom of Information Act, the Privacy Act and the National Environmental Policy Act demonstrates that private rights of action can be an impediment to prompt an effective implementation of important government policies. (3) We see merit in requiring an agency that proposes to issue regulations to publish a legal opinion and a factual justification for the regulation when it publishes the regulation for public comment. - 2 - (4) We could not support a proposal that would require the Department of State to adopt a procedure of rule-making on a record instead of notice and comment and informal rule-making. Foreign policy matters do not lend themselves to elaborate administrative procedures. (5) Finally, we suggest that any new procedural require- ments not be so rigid as to preclude immediate action when necessary. Flexibility could be assured by pro- viding for the same exemptions as exist by law for notice and comment rule-making. These include, in particular, matters involving a military or foreign affairs function and matters for which the agency for good cause finds that this procedure is impracticable, unnecessary, or contrary to the public interest. Attachment: as stated ENERGY THE SECRETARY OF ENERGY WASHINGTON, D.C. 20585 STATES February 3, 1981 MEMORANDUM FOR Craig L. Fuller Director Office of Cabinet Administration FROM: James B. Edwards JBC SUBJECT: CABINET MATTER MEMORANDUM: Burden of Proof for Statutory Validity of Regulations I recommend that this suggestion not be included in the Executive Order on regulations but rather that it be further studied for possible support of the Bumpers bill, The Administrative Procedure Act Amendments of 1981, S. 67. In the future, the Department of Energy (DOE) will likely be promulgating regulations that revoke, postpone, or lessen regulatory requirements. In so doing, we will be interpreting the statutory mandates for various programs. It is also likely that our interpretations of statutory mandates will be challenged in courts by environmentalists, no-growth advocates, and the like. If the burden of proof rests on DOE, rather than these litigants, it is entirely possible that our attempts to lessen regulatory constraints will be voided by the courts. Moreover, most of the worst regulations will have already been adopted during the last Administration. Because the Executive Order, as opposed to the Bumpers bill, will have to be prospective in effect, it will not be able to affect the burden of proof for these earlier regulations. Thus, it is possible that we would, by adopting this suggestion, actually make it more difficult to undo the regulatory constraints imposed by the former Administration. Finally, I believe each Cabinet officer is committed to the goal of lessening regulatory constraints and will do whatever is necessary to assure that this goal is achieved. It would be ironic if, by giving the courts greater flexibility to overturn new regulations, the effect would be to stymie attempts to reverse the directions of the previous Administration. I would add that my recommendation, in this regard, is based on discussions with my most trusted associates. Cabinet Meeting 2-13-81 H:45 p.m. 74 vachage: Individ fax cats across the Bd. on maijual rets befining on July / - July to July each year is 102. Fivel act in calanda 1984 Capital recovery , Man 10-5-3 - ( excludes utilitis) util, kip) accetented - willoding RED. D. Capital gain etc. M: Make me can't end-nen us. he johed P: "On we'll books - tip this swivel chairs Stortine = In order to achieve goals by 182- - wee we still make total of "51 belief need to find 9 fill - to we hope 'FY 182 definit below $40 bill pizy D.S.: Have to have together on these cuts fach Heg the pressures Fy'82 190 bill in retlays despite savings jy182 958 will Social Security $ 10 billi- the thip 583 11 national self only $ 300 illi left w/ what to oftain $5/60 in sangs -need a 17% ant to achieve reduction from The cater froget If we lose ground on some cuts, then have to reach into me critical programs that no government has before which "We're going to make history 12 request tsell in size." P.3 FY 181 661 this year FY 82 739 1 Carta budget submitted - 80 up ant about & Jo billing Still an increased of 31 - will clothes over '81 budget he Ind for claims such a sord tool: proud you." of " Hanling Dane Strchus for all the "I worl "We want leave you out there RR. alone, Dave We'll come the said hanging! Feb. 255 - announcent medal of Honor - Vietnam war. Cabinet Meeting 2-26-81 Regar Chysler Quarantee loan - Got loans at just under 162- Signif will be tomorrow. guarantee. Leaves $ 300 millin left on the next Q 300 millin is dur Decision This one is past administration Block Fair 1981 Bill Marhet creatation & le Butz - ag. takes smalles Rostin of budget than before. Program to move us toward market rientation Dairy maran Big grending cut - must be acted on soon Do as not to miss april / deadline. Wreats the elimination I deficiency payments - these are right out of the treasury 2/no return. Loans are usually repaid. Stochman : Must cut Fed. outlap even more. Should't raise support levels of all these commodities 2:11 2 Joan rates won't be written into the Magam - wants Sey of Africulture to have disaretion to set loan rates. Cons. hearings begin next week generally on the new Farm Bill 1.) Delay hearis 2.) study it - get comments 3. 3.) put on next agenda 4.) Put Macco on agench. All :, Economic covery the mistale of tring to Thetchey said she made get her program hell by R set her while package at nice should have thet one time. higher Every time the budget comes up in each dept - then we're going to set cuts wh/ are shoretfull verisely commensame w/ the Don Regan Hill will delay where they can to see if they can hold off RR's we must Keep the initiative They will try to nichle I dime us to death ri RR: Top O'Neill said it might take until august Bushay Speaher beld' the will be GSP Comfi told I il you do you want he P: He bit the and off his cigar." We have to keep fushing; all of it. some well under state from committes to the chaine I world I'll back you if you sdy sit there t take thet." "You all knowstory of rethouse 2 young Within who tipped who gully - Rather ash who did it Doll then about G Wadiston who shoul't whip. Then they tree him t he whileed both They said that you'tred us that like 6.W., if we told you your would whip us. Father Faid: : Ow. writgt father tree when wasn't he cut in the it! cheng p.y This fruit Family P : No They paid < taxonit when they said the money in." THE WHITE HOUSE WASHINGTON CABINET MEETING AGENDA February 26, 1981 - 3:00 PM 1. Chrysler guaranteed note issue Donald Regan 2. 1981 Farm Bill John Block 3. Program for Economic Recovery Donald Regan David Stockman 4. Cabinet Councils Ed Meese CABINET MEETING PARTICIPANTS February 26, 1981 -- 3:00 PM The Cabinet -- All members James A. Baker III Michael K. Deaver Richard V. Allen Martin Anderson James Brady Max Friedersdorf David Gergen Murray Weidenbaum Richard Darman Craig Fuller Daniel Murphy Ken Khachigian Karen Hart For Presentations: Ed Harper Glenn Schleede Roger Mehle (Assistant Secretary for Domestic Finance, Treasury) February 27, 1981 SUBJECT: The 1981 Farm Bill ORIGINATION: John Block, Secretary of Agriculture ACTION FORCING EVENT: The Food and Agricultural Act of 1977, which authorizes all of the major commodity programs, rural development and agricultural research programs, the P.L. 480 program and the food stamp program, expires September 30, 1981. STATEMENT OF ISSUE: The 1981 Farm Bill will authorize, for an additional four years, a variety of commodity and food programs which fall under the jurisdiction of the Department of Agriculture. It is my goal to make market orientation and growth the cornerstone of the 1981 Farm Bill. This bill should help create an environment within which agriculture can once again be made profitable, with minimum government involvement. The four sections of the bill which will attract the greatest attention will be: the dairy program, commodity price supports, the food stamp program, and the authorization levels for the P.L. 480 program. ANALYSIS: (1) Dairy Program - A variety of options are being considered which will adjust the current dairy program in order to bring the supply and demand for dairy products back into balance. (2) Commodity Price Supports - The bill will elimimate deficiency payments (i.e. direct payments to farmers which represent nonrecoverable outlays) for the following commodities: wheat, feed grains, rice and cotton. In their place, the bill will include moderate increases in the price support levels for these commodities (which represent recoverable outlays). (3) Food Stamps - The bill will incorporate the $1.8 billion in savings for FY 1982 proposed in the President's Economic Recovery Program. These program changes will lead to savings of $11.7 billion over next five years (FY 1982-86). (4) P.L. 480 Program - The current authorization for the program expires December 31, 1981. This program provides humanitarian food aid as well as long-term financing for developing countries to by U.S. agricultural commodities. PUBLIC POLICY CONSIDERATION: The most sensitive area in the bill will be the dairy program. The interests of the various dairy organizations must be balanced with those of the consumers tn order to achieve a program which will operate effectively within our current hudget constraints. CABINET MEETING PARTICIPANTS February 26, 1981 -- 3:00 PM The Cabinet -- All members James A. Baker III Michael K. Deaver Richard V. Allen Martin Anderson James Brady Max Friedersdorf David Gergen Murray Weidenbaum Richard Darman Craig Fuller Daniel Murphy Ken Khachigian Karen Hart For Presentations: Ed Harper Glenn Schleede Roger Mehle (Assistant Secretary for Domestic Finance, Treasury) THE WHITE HOUSE WASHINGTON MEMORANDUM FOR THE CABINET FROM: ED MEESE EM SUBJECT: Cabinet Councils The membership of each Cabinet Council has been finalized after the views were received from those of you who wished to comment. A listing of each Council and its members is attached. The Cabinet Councils are designed to operate as subgroups of the full Cabinet, with the President presiding. Full Cabinet meetings will continue to focus on broad issues affecting the entire government and on overall budgetary and fiscal matters. Cabinet Council procedures have been developed and endorsed by the President. The procedures are intended to create an orderly process for reviewing issues requiring a decision by the President. The Cabinet Council procedures are outlined below. A more detailed set of procedures will be distributed in the next few days by the Office of Cabinet Administration. Outline of Procedures 1. Each Cabinet Council will be chaired by the President. 2. Each Cabinet Council has a designated chairman pro tempore who will guide the direction of the Council and will serve as the chairman of working sessions in which the President is not in attendance. 3. An executive secretary will be appointed for each Cabinet Council from the Office of Policy Development. This individual, working with the Office of Cabinet Administration, will coordinate the activities of each Cabinet Council including the preparation and distribution of agendas and meeting summaries. This activity will be supplemented by a secretariat for each Cabinet Council, composed of the executive secretary, representatives of the member departments, and other personnel as needed, to prepare background materials, refine policy options and recommendations, and otherwise assist the Cabinet Council. 2 4. Issues will be sent to Cabinet Councils by the Office of Cabinet Administration. Notification of such assignments will be communicated immediately to all Cabinet members to assure full opportunity to participate in consideration of each issue. 5. Presidential decisions, made in or after Cabinet Council meetings, will follow full discussion by any Cabinet member who wishes to participate. Council meetings are open to any member of the Cabinet. Decisions will be reported to the full Cabinet as they occur. When full Cabinet review is required, the matter will be set for a meeting of the full Cabinet. 2/26/81 CABINET COUNCIL ON COMMERCE AND TRADE Secretary of Commerce, Chairman Pro Tempore Secretary of State Secretary of the Treasury Attorney General Secretary of Agriculture Secretary of Labor Secretary of Transportation U.S. Trade Representative Chairman, Council of Economic Advisers * The Vice President * Counsellor to the President * Chief of Staff * Ex officio member 2/20/01 CABINET COUNCIL ON HUMAN RESOURCES Secretary of Health and Human Services, Chairman Pro Tempore Attorney General Secretary of Agriculture Secretary of Labor Secretary of Housing and Urban Development Secretary of Education * The Vice President * Counsellor to the President * Chief of Staff * Ex officio member 2/26/81 CABINET COUNCIL ON ECONOMIC AFFAIRS Secretary of the Treasury, Chairman Pro Tempore Secretary of State Secretary of Commerce Secretary of Labor Secretary of Transportation Director, Office of Management and Budget U.S. Trade Representative Chairman, Council of Economic Advisers * The Vice President * Counsellor to the President * Chief of Staff * Ex officio member 2/20/01 CABINET COUNCIL ON NATURAL RESOURCES AND ENVIRONMENT Secretary of the Interior, Chairman Pro Tempore Attorney General Secreatry of Agriculture Secretary of Transportation Secretary of Housing and Urban Development Secretary of Energy * The Vice President * Counsellor to the President * Chief of Staff * Ex officio member TR/97/7 CABINET COUNCIL ON FOOD AND AGRICULTURE Secretary of Agriculture, Chairman Pro Tempore Secretary of State Secretary of the Interior Secretary of Commerce Secretary of Transportation U.S. Trade Representative * The Vice President * Counsellor to the President * Chief of Staff * Ex officio member ISSUE: Proposed $400 million Chrysler government guaranteed note issue ORIGINATOR: Donald T. Regan 1°81 CABINET MATTER: I SUBJECT Proposed $400 million Chrysler government guaranteed note issue II ORIGINATOR Donald T. Regan III ACTION FORCING EVENT None (Information only) IV STATEMENT OF THE ISSUE On February 27, a meeting of the Chrysler Loan Guarantee Board is scheduled so that the closing of the proposed $400 million Chrysler government guaran teed note issue can take place. V ANALYSIS: Outline history, current status, possible actions and impacts--financial, constituent or other public policy considerations. On January 19, 1981, the Chrysler Loan Guarantee Board (then comprising former Treasury Secretary Miller (as Chairman), Federal Reserve Board Chairman Volcker and Comptroller General Staats as voting members, and former Labor Secretary Marshall and former Transportation Secretary Goldschmidt as non-voting members) found that Chrysler Corporation was eligible for an additional $400 million in note guarantees, subject to the fulfillment of certain conditions before the guaranteed notes might be offered to the public and issued. ($800 million are already outstanding, having been authorized and issued in 1980.) Since January 19, Chrysler has been seeking the fulfillment of the conditions and, a few problems having been resolved, it is now expected that they will all be fulfilled. A Chrysler Loan Guarantee Board meeting has been scheduled for February 27, at which time the Board, upon a determination that the conditions have been met, will consider affirmation of the eligibility finding made at the January 19 meeting. (The Board members are the same as on January 19 except that Secretaries Regan, Lewis and Donovan occupy the positions of their predecessors.) Assuming such affirmation, the note issue will be closed with underwriters and Chrysler will receive net proceeds of approximately $400 million from the note issue. Chrysler is in serious need of these funds. Although its near term prospects are showing improvement, should the subject transaction not be consummated for whatever reason, the company would probably fail. Chrysler's long-term well- being will depend upon a capital infusion through a merger or other business combination, which the Administration should encourage. - 2 - VI RECOMMENDATION: Indicate single recommendation or list options. None required. VII DECISION approve approve as amended reject X no action If options are contained in the recommendation, indicate option (s) referred to above by placing the appropriate number(s) in the spaces above.