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Originally Processed With FOIA(s): FOIA Number: 1999-0735-F; 2025-0235-S S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Chief of Staff, White House Office of Series: Brady, Phillip D., Files Subseries: Chronological Files OA/ID Number: 05483 Folder ID Number: 05483-006 Folder Title: Chron File 3/92 [1] Stack: Row: Section: Shelf: Position: G O o O 0 THE WHITE HOUSE WASHINGTON March 31, 1992 MEMORANDUM FOR THE PRESIDENT FROM: Phillip D. Brady nh SUBJECT: National Medal of the Arts The National Medal of the Arts was established by law in 1984. The award is given on the basis of recommendations from the National Council on the Arts to individuals or groups who have contributed exceptionally to the arts in the United States. No more than twelve Medals may be awarded in any calendar year. With your concurrence, as in years past, we will schedule an award presentation and luncheon with you and the First Lady in June or July. Attached at TAB A is background material on the candidates nominated for this year's awards by the National Council on the Arts. We can provide further information on any candidate if you desire. These nominations were staffed, including Counsel clearance, and we have indicated the support received for each nominee. We have also added explanatory notes for certain nominations and have placed asterisks next to a proposed consensus slate of twelve awardees, taking into account the National Council's recommendations, White House staff support for the nominees, and the desire to include medalists from a range of arts. This list includes, as is traditional, one corporate and one individual patron; it is also broadly representative of the various arts -- music, theater, painting, architecture, writing, and film. Thank you. (attachment) Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 01. List List of Nominees (7 pp.) n.d. (b)(6) Collection: Bush Presidential Records Office of the Chief of Staff Phillip D. Brady Files Record Group: Bush Presidential Records Office: Chief of Staff to the President, Office of the Series: Brady, Philip D. Subseries: WHORM Cat.: File Location: Chron File 3/92 [1] Date Closed: 2/21/2001 OA/ID Number: 05483-006 FOIA/SYS Case #: 1999-0735-F Appeal Case #: Re-review Case #: 2005-0331-S Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRAJ (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA) personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. THE WHITE, HOUSE WASHINGTON Ron, 3/30 Per our andertanching tilid not franch the attached after lorig it preview D. I will if you feel Strongly but given U.e bolume of High 50mg in 000, Ronly, Pail. HOUSE THE WASHINGTON DATE: 3/17/92 MAR 18 MAR A8:55 A8: TO: 02 Phil BA FROM: Room CALL Me ON TUTIS PLEASE THANKS THE WHITE HOUSE WASHINGTON March 12, 1992 MEMORANDUM FOR RON KAUFMAN DEPUTY ASSISTANT TO THE PRESIDENT FOR POLITICAL AFFAIRS FROM: MARK PAOLETTA Nhe ASSISTANT COUNSEL TO THE PRESIDENT SUBJECT: Operation Thank You At your request, I am sending along the video I previously mentioned to you. For your information, the video was created, directed, and produced by Michael Marnell, an artist in New York. The singer/soldiers that appear on the video are the 82d Airborne Division All-American Chorus. These are real soldiers singing. Marnell filmed the video last August at Fort Bragg, North Carolina. The war and other military action footage was provided by the Department of Defense. The video aired on The Nashville Network (TNN) on February 24, 1992, the one year anniversary of the ground war, during TNN's morning talk show. The videocassette contains the video song "Operation Thank You," followed by the segment from The Nashville Network, which includes both the video song and a short interview with Marnell. Apparently, the first version of the song is missing the voice over by the President at the beginning, but it is in the version that was aired on TNN. If you think it is appropriate, I recommend that you send it along to the President. I think he'll love it. 3/30/92 SHOW THE WHITE HOUSE POTUS WASHINGTON March 27, 1992 MEMORANDUM FOR THE CHIEF OF STAFF THROUGH HENSON MOORE WAS DEPUTY CHIEF OF STAFF FROM KATHY SUPER K Super DEPUTY ASSISTANT TO THE PRESIDENT FOR APPOINTMENTS AND SCHEDULING SUBJECT PROPOSED DATES FOR BUSH-QUAYLE FUNDRAISERS Listed below are recommended dates for the upcoming Bush-Quayle Fundraisers. These dates would best accomodate events already scheduled for the President. The campaign would like to precede with these dates once approved. APRIL 27 Charlotte, North Carolina - Fundraising Dinner (on return from Miami commencement address) APRIL 30 Pittsburgh, Pennsylvania - Fundraising Lunch Columbus, Ohio - Address the Ohio Association of Broadcasters Columbus, Ohio - Fundraising Dinner MAY 5 New Jersey - Fundraising Dinner MAY 7 Atlanta, Georgia - Fundraising Dinner MAY 12 Philadelphia, Pennsylvania - Fundraising Dinner MAY 15 Cincinnati, Ohio - Fundraising Lunch (on the way to Houston, Texas) MAY 21 Greenwich, Connecticut - Fundraising Dinner THE WHITE HOUSE Office of the Press Secretary FOR IMMEDIATE RELEASE March 30, 1992 The President today recognized Richard Hassell of Norfolk, Virginia, as the 732nd Daily Point of Light for the Nation. Mr. Hassell has dedicated more than 50 years of his life to serving his neighbors and fighting poverty in his community. Mr. Hassell, 84, is a lifelong resident of Norfolk and the sole operator of Christian Action, a charitable organization he established in 1964. A former actor and personal assistant to the late country-western singer and movie star, Tex Ritter, he was inspired to help people of the Tidewater area by his mother, who ran a soup kitchen during the Great Depression. Extending a helping hand to those who have lost jobs or whose homes have been destroyed by fire, Mr. Hassell is well-known throughout his community and has formed friendships with many of the people he has helped. Local businesses and individuals support his work with contributions of food, clothing, and other resources, including a van, storage space, and electronic equipment. The Salvation Army, local churches, and state social service agencies all refer clients to Mr. Hassell. Sometimes receiving over two hundred phone calls in one day, Mr. Hassell tries to address the individual needs of each caller. During the holiday season, he receives donations from retail stores and others to feed over 900 persons at the Open Door Chapel in Virginia Beach. The President salutes Richard Hassell for exemplifying his belief that, "From now on in America, any definition of a successful life must include serving others." ### FOR FURTHER INFORMATION CONTACT: Tracey Taylor or Miah Homstad (202) 456-6266 THE WHITE HOUSE Office of the Press Secretary FOR IMMEDIATE RELEASE March 31, 1992 The President today recognized the volunteers of the Cuban American Bar Association (CABA) Pro Bono Project of Miami, Florida, as the 733rd Daily Point of Light for the Nation. The CABA Pro Bono Project meets the legal needs of impoverished individuals in Dade County. CABA attorneys formed the pro bono project in 1984 in response to the lack of interpreters at established legal aid programs. Attorneys regularly hold clinics in low-income neighborhoods, where they offer advice and legal assistance to those who do not qualify for other programs in Dade County. Clients needing more in-depth help are referred to other legal programs or to CABA volunteer attorneys. CABA attorneys defend people facing mortgage foreclosures, collection actions, divorces, alimony cases, and many other litigations, but do not accept criminal, immigration, or bankruptcy cases. More than 160 CABA attorneys, mainly of Cuban heritage, donated over 1,000 hours last year. The attorneys not only make court appearances, but also research and file their own briefs and call on clients at home if necessary. Cases require an average of 25 hours of preparation, but have taken as many as 150. Following the cases, clients who have worked with the attorneys are questioned about the quality of representation and any additional needs they may have. Two Catholic churches, St. John Bosco and the Gesu, along with Legal Services of Greater Miami, Inc., have supported the project financially and donated office space and equipment. The President salutes the volunteers of the Cuban American Bar Association Pro Bono Project for exemplifying his belief that, "From now on in America, any definition of a successful life must include serving others." ### FOR FURTHER INFORMATION CONTACT: Tracey Taylor or Miah Homstad (202) 456-6266 THE WHITE HOUSE Office of the Press Secretary FOR IMMEDIATE RELEASE April 1, 1992 The President today recognized the volunteers of St. Mary's Interfaith Dining Room of Stockton, California, as the 734th Daily Point of Light for the Nation. Dining Room volunteers ensure that homeless and indigent individuals develop dignity, hope, and a sense of well-being. First opened to feed migrant workers in 1955, St. Mary's Interfaith Dining Room was reorganized in 1983 with the help of its current Director, David Brewer. Its 130 volunteers now assist 18 paid staff members in providing services ranging from feeding the hungry to educating homeless children. Food is served daily and most other services are offered on weekdays. In addition to serving over 17,500 meals monthly, St. Mary's serves as an outreach center for the poor, offering shower facilities, clothing, and job referral information. Hairstylists donate their services to ensure that clients maintain personal hygiene, while volunteer doctors provide free medical treatment to three hundred individuals monthly and volunteer dentists treat 450 people each month. The center also includes a school for homeless children who do not reside in a specific school district. Students are fed breakfast and lunch, ensuring that they are adequately nourished each day. They are taught by one full-time certified teacher and rotating student teachers from California State University, Stanislaus. In addition to this teaching commitment, student teachers assist parents and children in relocating from temporary to permanent housing, helping to ease the children's transition into a regular school. The President salutes the volunteers of St. Mary's Interfaith Dining Room for exemplifying his belief that, "From now on in America, any definition of a successful life must include serving others.' ### FOR FURTHER INFORMATION CONTACT: Tracey Taylor or Miah Homstad (202) 456-6266 THE WHITE HOUSE Office of the Press Secretary FOR IMMEDIATE RELEASE April 2, 1992 The President today recognized the volunteers of Any Baby Can (ABC), Inc., of San Antonio, Texas, as the 735th Daily Point of Light for the Nation. ABC volunteers strengthen families by helping parents and siblings learn to accept and appreciate the special needs of their children. Thousands of children in San Antonio have special needs resulting from autism, chronic or terminal illnesses, hearing impairments, or other problems. Because many parents do not realize or fully understand the nature of these problems, children may be left without proper medical or therapeutic care. Since 1982, ABC volunteers have been helping families, 80 percent of which are low-income, and their children, from birth to age eight. The volunteer-operated "Parent Helpline" offers support and advice and refers families to ABC case managers or to other agencies. At monthly support groups, parents receive training and information. At these meetings, which are led by parent volunteers and either a counselor, psychologist, or other professional, parents learn about subjects such as "Sudden Infant Death Syndrome." Parents who are crisis survivors run a resource library, Michael's Place, and visit homes with staff case managers to instruct other parents about their children's special physical and emotional needs. More than 450 volunteers devoted over 30,800 hours and served 1,056 families last year. Over 40 volunteering seniors, ages 55- 80, provide in-home respite care, escort children to visit incarcerated parents, provide day care for homeless children, teach parenting skills, and help parents understand medical terminology. "Intensive Care Grannies" are specially trained volunteers who work one-to-one with families in crisis at their homes, visiting daily, often for several weeks. More than 12 graduate students from Our Lady of the Lake University give of their time to counsel and listen to the needs of families three days per week. Many volunteers are bilingual, enabling them to better serve San Antonio's large Spanish-speaking population. The President salutes the volunteers of Any Baby Can, Inc. for exemplifying his belief that, "From now on in America, any definition of a successful life must include serving others." # # # FOR FURTHER INFORMATION CONTACT: Tracey Taylor or Miah Homstad (202) 456-6266 THE WHITE HOUSE Office of the Press Secretary FOR IMMEDIATE RELEASE April 3, 1992 The President today recognized the volunteers of the Lunch Buddy Program of Olympia, Washington, as the 736th Daily Point of Light for the Nation. Adult volunteers befriend elementary school students, helping these children develop self-esteem and good character and values. The Lunch Buddy Program was organized in March 1990 by Mary Southon, Volunteer Coordinator for the Olympia School District, John Van Rooy, a family resource specialist, and Mark Haddock, current principal of Garfield Elementary School. Through the program, a caring adult volunteer is matched with a student who needs more individual adult attention. Volunteers spend at least one hour per week with their "buddy," eating together, talking, playing, or reviewing class assignments. Teachers refer students who might benefit from this extra attention to the program. Many of the students are from low- income or single parent families, have low academic performance, or do not interact well with their peers. Through "Lunch Buddies," they develop friendships that usually last for the entire school year. Sixty-one volunteers, including city and state employees, senior citizens, business professionals, and school district employees, currently work with students from Madison and Garfield Elementary Schools. Applicants are screened by the volunteer coordinator and the respective school counselor matches each volunteer with a student. Teachers maintain that students who are matched with a lunch buddy have shown improvement in attendance, class participation, and academic performance and have also exhibited enhanced social skills. The President salutes the volunteers of the Lunch Buddy Program for exemplifying his belief that, "From now on in America, any definition of a successful life must include serving others." # # # FOR FURTHER INFORMATION CONTACT: Tracey Taylor or Miah Homstad (202) 456-6266 THE WHITE HOUSE Office of the Press Secretary EMBARGOED FOR RELEASE April 3, 1992 UNTIL APRIL 4, 1992 The President today recognized Joe Slone of Louisville, Kentucky, as the 737th Daily Point of Light for the Nation. Mr. Slone uses his experiences as a recovering alcoholic to help others overcome the effects of alcoholism and develop a sense of well-being. A former newspaper reporter and editor, Mr. Slone was able to win his battle against alcohol in 1983, following 18 treatment programs. This personal triumph, coupled with his background as an admissions counselor and community relations director of a shelter, convinced Mr. Slone that he needed and wanted to do more. In 1988, he completed training as a Certified Chemical Dependency Counselor (CCDC) to help others beat their dependency on alcohol and drugs. Since obtaining his CCDC, Mr. Slone has gone beyond his regular duties by volunteering countless hours during lunch, after work, and on weekends counselling alcoholics. Currently, he devotes between 25 and 30 hours per week at the St. Vincent dePaul Center for homeless men and at St. Jude House, a halfway house for recovering female alcoholics. He counsels over sixty men and women individually each week, spending 15 to 20 minutes checking their progress or even several hours discussing their problems. He reaches out to others in need of help by speaking at Alcoholics Anonymous meetings throughout the year. Mr. Slone is convinced that, with support and guidance, people can change. His recovery from alcoholism has come through the help and emotional support of counselors, and he has given that same support to others struggling to break their dependency. The President salutes Joe Slone for exemplifying his belief that, "From now on in America, any definition of a successful life must include serving others." ### FOR FURTHER INFORMATION CONTACT: Tracey Taylor or Miah Homstad (202) 456-6266 POINTS TO BE MADE AT PHOTO OPPORTUNIT PATRICIA M. PRITCHARD, PETTY OFFICER SUC 18 jo UNITED STATES NAVY STAFF INFORMATION ASSISTANT -Pe NSC RECORDS MANAGEMENT OFFICE Buipue WHITE HOUSE: BRENT SCOWCROFT NSC: NANCY MENAN °0 oot 41 uo 10A 10u MOM IIIM noo I'M TOLD YOU WERE A VALUAB to RECORDS MANAGEMENT OFFICE eg your keep Theme SERVICE. mys. 91 ue 112, a I HOPE YOU FIND YOUR NEW NAVAL RESEARCH LAB EXCI' a NOVE cues you TO pesnoje si events Air SSE DO for 40 Signature per 35% you *IM You Addey (18 "XI) (02 no ue 41 GG 29 same AMERICA soy 0661 Call idpy et SS new cars sold in Maryland meet second st 54 ES stricter emission standards begin- Judicial ning in 1996. Mr. Schael But the governor said at a news a setback.' conference Thursday that the legis- The bill lature has done a great job this passing the year. Schaefer have nothing but praise for DD again next them for the dedication: the work ert Storm W 6E they ve done," he said. said. BE Mr. Schaefer was asked for his The car E 08 Bill would let N 22 61 property tax W 91 By Melody Petersen Counties initi. CAPITAL NEWS SERVICE said Kris Hug 6 ports it becau ANNAPOLIS - Property tax that lets the cc payers may soon be saying, "Just usty. decisions on W 10 eq IIIM spur charge it." cards. Bay. Some sunshine will A bill that would let Marylanders lower Potomac and 1-2 rain. Wave heights will pay, property taxes by credit card The associat 5 knots. The visibility has passed the House Ways and the bill could p eriods of rain. Windo Means Committee. The Senate ap- rious debt. Int proved the measure last Monday on card debt could a 34-12 vote. nificantly more Under the proposals residents ing the payme could use credit cards to pay the Hughes said. property tax in one payment giving THE WHITE HOUSE WASHINGTON March 27, 1992 MEMORANDUM FOR ALL COMMISSIONED OFFICERS FROM: PHILLIP D. BRADY Assistant to the President and Staff Secretary SUBJECT: WHITE HOUSE CORRESPONDENCE As the June 3, 1991, memorandum to commissioned officers and administrative contacts stated, "the President places a very high priority on ensuring that all mail addressed to him is answered promptly and responsively." Recently, the President has expressed concern with respect to the handling of mail and asked that offices be reminded of the importance he places on this matter. The purpose of tracking selected mail (with the blue cover sheet) is to ensure that this mail is answered promptly -- within two weeks. Occasionally, the final answer to the writer's concern is not available within that time frame; in such cases, an interim response should be sent acknowledging the writer's concerns and following up with final disposition as appropriate. Your office receives a biweekly report of tracked mail that is over two weeks old. Currently, our records indicate that your department has a number of documents that are overdue. Recognizing that you may have handled the matter by phone or failed to close out the tracking sheet, we would ask you to: Review your list, close out completed cases, and return the entire package to Records Management; Take steps to answer all outstanding tracked mail. Your office also receives letters without the tracking sheets from the general public that relate to your office's area of expertise or responsibility. They, too, should be answered promptly -- even if the only possible response is to thank the writer for sharing his or her views. The volume of the President's mail is currently very high -- approximately 75,000 pieces per week -- and we recognize that responding to those letters referred to your office places a burden on your resources. Nevertheless, the President has again emphasized the high priority he gives to correspondence, and your assistance in ensuring that all mail addressed to him is answered in a timely and responsive manner is very much appreciated. Thank you. FYI NSC TE HOUSE NGTON 2 FOR: NSC FROM: PHILLIP BRADY Assistant to the President and Staff Secretary XX X Information Action Let's Discuss 03/28/1992 16:31 OFDA Washington, DC USA 202 647 5269 2504621 P.01 4H USAID Agency for International Development Bureau for Food and Humanitarian Assistance Office of U.S. Foreign Disaster Assistance (OFDA) DATE: 3/27 NUMBER OF PAGES INCLUDING THIS COVER SHEET: 6 PLEASE DELIVER THIS MESSAGE THIS MESSAGE IS TO FROM Name: Name: Valene Newson Office: White House Office: OFDA Telephone: Telephone: 647-7436 Fax: 456-2397 Fax: (202) 647-5269 NOTE: Sathern Arrica situation report 03/28/1992 16:32 OFDA Washington, DC USA 202 647 5269 2504621 P.02 AGENCY FOR INTERNATIONAL DEVELOPMENT WASHINGTON, D.C. OFFICE OF U.S. FOREIGN DISASTER ASSISTANCE (OFDA) SITUATION REPORT NO. 1 9:00 a.m. March 23, 1992 SOUTHERN AFRICA - Regional Drought Areas Affected: The entire Southern Africa region, including Zimbabwe, South Africa, Zambia, Malawi, Namibia, Mozambique, Angola, Botswana, Lesotho and Swaziland Summary of USG Assistance OFDA $166,000 FFP $69,761,600¹ USDA $40,200,000² TOTAL USG $110,127,600 'This figure includes pre-drought allocations to drought affected countries in the region. ²This figure does not include $20,000,000 in USDA food credits or pending USDA food assistance. General Situation distributed in the form of food aid. (Figures included A severe drought throughout Southern Africa has in this situation report are based on estimates from obliterated all hopes of successful crop yields this U.S. Government, international organization and host season. The region received almost no rain during the government officials in the region. As the drought growing season, and the little rain that did fall came situation continues to unfold, these figures are subject too late to save dehydrated crops. Many Southern to change. OFDA will provide updated information in African countries accustomed to drought conditions subsequent situation reports.) normally rely on South Africa and Zimbabwe as surplus producers to provide a grain cushion in Republic of South Africa desperate times. This year, however, both South The Republic of South Africa (RSA), which usually Africa and Zimbabwe, along with Zamhia, Malawi, serves as a granary for the Southern Africa region, Namibia, Mozambique, Angola, Botswana, Lesotho, produced insufficient crops this year to meet even its and Swaziland, will require food assistance. own needs. The lack of rain caused irreversible damage to maize crops, leaving RSA with only one- The U.N. Food and Agriculture Organization (FAO) third of its normal maize production (maize is a staple reports that cereal production in Southern Africa is food of the region). The impact of the drought on not expected to be more than 16 million tons, a 25% farm workers in South Africa is expected to be decrease from last year's poor harvest. This could disastrous. USAID/Pretoria reports a growing number lead to widespread severe malnutrition later in the of displaced farm workers moving into squatter camps. year in the more vulnerable areas. The region is Some estimates suggest that the drought may displace expected to require imports of almost ten million up to 100,000 farm workers. metric tons (MT) of food, as compared to a normal year's import needs of two million MT. Over An anticipated regional problem is the impact of two million MT of the imported food will need TO be increased food imports on the RSA's ports and 03/28/1992 16:32 OFDA Washington, DC USA 202 647 5269 2504621 P.03 2 transportation systems. The RSA plans to import at Many areas of Zimbabwe face severe water shortages, least six million MT of commercial maize along with which has resulted in the rationing of water in most other food products to cover its needs, and to support towns, causing a deterioration in health and hygiene. commercial sales to Botswana, Lesotho, Swaziland and Only 10 of Zimbabwc's reservoirs are over 50% full, Namibia. The six million MT. along with some and these are all in Mashonaland. There is a serious portion of the import needs of neighboring countries, water problem in Bulawayo, a major city in will need to come through RSA ports, which will place Zimhabwe, due to water shortages and exploding considerable strain on the port infrastructure. The sewer lines. The GOZ plans to deploy 600 static trucking capacity and rail transportation systems will water storage tanks to hospitals, schools and other also be stretched to their limits. institutions, in resettlement and communal areas, that have been forced 10 close due 10 the water shortage. Zimbabwe The planned operation will cost over $33 million and Due to poor rains in 1991, Zimbabwe, typically a will utilize national and donor funds. regional food exporter, faces its worst drought of the century with dangerously low in-country food stocks. Zambia The Government of Zimbabwe (COZ) expects the Even before this year's drought. Zambia's depleted country will run out of food this month and is looking internal food reserves had forced the country to to Import 200,000 MT of maize immediately in import food to satisfy its needs. This year, Zambia addition to the 100,000 MT that is currently being had been expecting large production outputs due to a imported from South Africa. In the long term, change in price policy that had stimulated increased Zimbabwe will require substantial donor assistance to planting. The expected levels of marketed production avert serious food shortages and malnutrition. In are especially significant in Zambia where over 5077 August, the GOZ will need to import at least 1.6 of the population reside in cities. Despite great million MT of maize along with 240,000 MT of wheat, hopes, drought conditions changed national production 150,000 MT of soybcans, and 15,000 MT of rice. A expectations to 40% below last year's low harvest. study conducted by the Standard Chartered Bank in Zimbabwe estimated the total impact of the drought The food situation in Zambia is currently manageable on their agricultural sector at $383 million. due 10 commercial imports of 150,000 MT of maize from South Africa, and the planned arrival of 70,000 An estimated 40% of the total population and over MT of U.S. food aid in early summer. The shortfall 60% of the rural population have applied for of this year's harvest will begin to affect the food government-funded relief. Current GOZ programs situation in July 1992. Based on estimates of final focus on the aged, handicapped, widowed and harvest production, Zambia is looking to import unemployed, and include about two million drought approximately 900,000 MT from July 1992 to July victims. However, in January and February, between 1993. Of this amount, approximately 200,000-300,000 51 and 63 percent of those who qualified for relief MT may be needed in the rural areas 10 supplement programs actually received food. GOZ reports this year's low harvest retention. indicate that over 35,000 children are suffering from malnutrition. On Feb. 11, 1992, the Government of the Republic of Zambia (GRZ) declared that a disaster existed in FAO reports that the drought has had 0 serious Zambia affecting 60% of the population. By Feb. 26. impact on livestock, causing increased cattle deaths in the disaster was redeclared to encompass the entire southern areas. Reports indicate that 90,000 caule population. have died and 310,000 cattle may die soon if the rains don't arrive. Livestock farmers are selling their cattle Malawi in anticipation of further pasture deterioration and the Southern Malawi faces its worst crop harvest in over high cost of animal feed. 20 years. The near total loss of many cash crops in 03/28/1992 16:33 OFDA Washington, DC USA 202 647 5269 2504621 P.04 3 the south could result in the need for special feeding (GON) or international donors to keep food prices programs. USAID/Lilongwe reports that the country down. will need to import 800,000 MT of maize to mecl its own needs. This figure was confirmed by the The depletion of fodder and pasture land has led to President of Malawi in his speech to Malawi's the forced early sale of livestock in Namibia. This Parliament in mid-March. About 140,000 MT will be trend is cause for concern as the sale of livestock now imported through commercial means, but the will make it difficult for small herders to purchase remainder of food imports will require donor food later this year. EWFIU, with the help of the assistance. U.N., is monitoring the drought's effects. The GON plans 10 institute measures to reduce livestock World Food Program (WFP) reports the need to pressure on the range, which may include emergency import 30,000-40,000 MT to fill the gap between the marketing subsidies, temporary utilization of unused immediate food needs of the Mozambican refugees in pastures and low interest loans for farmers to Malawi and the 110,000-120,000 MT already promised purchase fodder for breeding stock. The GON's by the international community (including the USDA National Disaster Management Committee is contribution of 60,000 MT, valued at $10 million, for responsible for coordinating emergency relief, but a refugee needs). There are almost one million national disaster has not been declared. Mozambican refugees in Malawi. WFP and the U.N. High Commissioner for Refugees estimate that Mozambique 247,000 MT of maize along with pulses. groundnuts, About two-thirds of Mozambique's farmland, primarily oil and other commodities will be needed from the in the southern and central portions of the country, is international community to stock their refugee affected by the drought. In some arcas lack of rain programs from July 1992 to December 1993. and extremely hot weather have destroyed 100% of maize crops. Mozambique is normally a major The Government of Malawi (GOM) issued an appeal importer of donor-financed food, and international on March 9, 1992 for international donor assistance to donors often provide food through arranging swaps avert possible widespread starvation. and/or purchases with Zimbabwe and South Africa, but this will not be possible this year. Namibia According to the Ministry of Agriculture's Early Commercial and relief food needs for 1992/93 are Warning & Food Information Unit (EWFIU), basic estimated at 1.5 million MT. I arge numbers of grain production in Namibia is expected to be down at people, concentrated in and around the cities, are least 63% from last year. However, if raius do not completely reliant on the market network to meet come this month, production could decrease as much their food needs. Estimates indicate that an as 90%. Namibia in the past has imported up to additional one million drought victims will be 53,000 MT of maize in a given year; estimates for dependent on food aid this year. This will require a 1992/93 indicate that Namibia will need to import 40% increase in current food aid, bringing the total between 90,000-118,000 MT of maize. food aid needed for 1992/93 to at least 414,000 MT. Namibia should have no problems obtaining food Angola through commercial imports from RSA, but these high Southern portions of Angola suffer from drought priced imports will not be accessible to vulnerable conditions and U.S. Government representatives in groups with limited means. EWFIU reports that Angola report serious crop damage in Cuando 500,000 of Namibia's 1.4 million people may be at risk Cubango province (UNITA figures indicate crop of hunger from failed crops. USAID officials estimate losses in some arcas of the province as high as 88- that between 50,000-80,000 MT of maize imports will 99%). The northern portions of the country appear to need to be subsidized by the Government of Namibia be receiving sufficient rainfall. FAO reported that 03/28/1992 16:34 OFDA Washington, DC USA 202 647 5269 2504621 P.05 4 Angola will need to import 270,000 MT of corcals of mine labor in South Africa. The Government of which 100,000 MT will need to be distributed as food Lesotho has not declared a national disaster. aid. A U.N. team, which was scheduled to return from an assessment of affected areas on March 14, Swaziland plans to meet with UNITA this month to devise an Reserves from 1991's bumper crop in Swaziland has emergency plan. left the country with a satisfactory food situation. despite current drought conditions. Maize production Botswana this year is estimated at 68,700 MT, less than half of Botswana, a country that normally imports 80% of its the 153,000 MT produced last year. In a year of food needs, will require imports of 90% of its needs normal crop yields, Swaziland imports approximately this year due to failed crops. Botswana's commercial 40,000 MT of maize to meet its needs. This year the food needs are included in South Africa's import Government of Swaziland estimates the need for calculations, but the country may require increased 78,250 MT in maize imports for the 1991/92 scason. food aid for feeding programs for school children and FAO estimates that 100,000 MT of commercial other vulnerable groups. imports will be needed for 1992/93. Most of these needs will be met through commercial imports from FAO reports deteriorating pasture conditions leading the RSA. to a critical livestock situation in July 1992. Major loss of cattle could impact the economic and social viability of the rural areas by leading to increased Assistance provided by the U.S. Government migration to the cities. A Government of Botswana (USG) (GOB) interministerial drought assessment team is The U.S. Embassy in Pretoria declared a drought currently touring the country to collect information on disaster on Feb. 24. The U.S. Embassy in Harare crop and livestock conditions. The leam will gn out declared a drought disaster on Feb. 11. OFDA again in April to update its information, and in May provided USAID/Harare with $25,000 for water the Rural Development Council will use the findings projects that will benefit 35,000 residents in or near to determine the need for special relief programs. drought stricken villages. Lesotho The U.S. Embassy in Lusaka declared a drought This year marks the second year of drought in disaster on Feb. 27. USAID/Lusaka plans to request Lesotho, affecting maize, wheat and sorghum additional PL480 Title II and Title III assistance. Pre- production, primarily in the lowland areas. drought Food for Peace (FFP) aid to Zambia includes USAID/Maseru reports that current estimates suggest 20,000 MT of Title II maize valued at $6.86 million that production totals for 1991/92 will be 30% below and 46,000 MT of Title III maize valued at $18 normal. Lesotho currently imports 50-60% of its million. cereal needs from South Africa, and if the RSA continues to meet Lesotho's commercial import needs, Mozambique is currently scheduled to receive 31,468 the country should have an adequate supply of maize MT of Title II maize, beans and vegetable oil valued through June 1992. If the current estimates hold true, at $7,874,800, and 110,000 MT of Title III maize Lesotho may require 200,000 MT of maize imports valued at $27,144,200. Pending approval is 2,060 MT after July 1992, a 40,000 MT increase of their regular of Title II maize, beans and vegetable oil valued at import needs. $581,900. Regardless of commercial imports, Lesotho faces a Lesotho is currently scheduled for FFP Title II food serious problem at the household level as families face aid of 8,114 MT of corn meal and vegetable oil valued an increase in food prices along with a decrease in at $3,864,000. Angola is scheduled to receive 15,173 earning potential due to the continuing reduction of of Title II maize valued at $6,018,600. 03/28/1992 16:35 OFDA Washington, DC USA 202 647 5269 2504621 P.06 5 The U.S. Department of Agriculture (USDA) is and another to Mozambique and Angola. Individuals processing two Section 416 agreements for 60,000 MT will also conduct assessments in Malawi, Tanzania, each of maize that will be funnelled through WFP to Botswana, Lesotho, Swaziland and Namibia. Malawi and Mozambique. Each program is valued at $20,100,000. Additional emergency food allotments of The FAO leams will assess production, imports, post- 115,000 MT maize and 50,000 MT sorghum to the harvest losses and input needs for the next season. region are under active consideration. USDA. The WFP teams will examine targeted food needs, approved concessional credits for Zimbabwe include vulnerable group requirements and logistics/shipping, 102,000 MT of Title I maize valued at $10 million and and will set up a shipping/logistics coordination office a $10 million GSM 102 credit for 102,000 MT of either at the South African port of Durban or Port maize. An additional $10 million credit is under Elizabeth. consideration. The World Bank is sending a team to Zimbabwe on On Feb. 6, 1992, a USG working group was formed to March 25 to negotiate a fast-disbursing drought monitor the drought situation and coordinate USG recovery credit of $100 million. Existing projects will response. The working group is currently focusing on also be reviewed for possible modifications to assist further assessing the extent of the drought in the with the drought. region and mobilizing needed resources. AID fielded two assessment teams 10 Southern Africa on March 22 10 examine drought-induced emergency food and non-food needs. The Icams include food, medical, water and sanitation, and famine mitigation experts. One team will assess the needs in Angola, Namibia, Mozambique, Lesotho and Swaziland, and the second team will travel to Zimhabwe, Zambia, James James R. Kunder Kinde Director Malawi and Botswana. The cost for travel and Office of U.S. Foreign Disaster Assistance perdiem for the two teams is estimated at $141,000. Summary of USG Assistance OFDA $166,000 FFT $69,761,600¹ USDA $40,200,000² TOTAL USG $110,127,600 ¹This figure includes pre-drought allocations to drought affected countries in the region. This figure does not include $20,000,000 in USDA food credits or pending USDA food assistance. Assistance Provided by the International Community FAO and the World Food Program (WFP) are planning joint assessment missions, beginning March 23, to countries seriously affected by the drought. The agencies will send one team to Zimbabwe and Zambia TOTAL P.06 2300 NATIONAL SECURITY COUNCIL WASHINGTON, D.C. 20506 March 27, 1992 C2 MAR 27 P4: 05 MEMORANDUM FOR PHILIP D. BRADY FROM: WILLIAM F. SITTMANN kotter SUBJECT: Proposed Press Release on Italian President Cossiga's Visit Attached is a draft press statement for release March 27 announcing the President's meeting with Italian President Francesco Cossiga on April 7. Cossiga's office also plans to announce the meeting on Friday. Attachment Tab A Draft Statement CC: Marlin Fitzwater Roman Popadiuk 3/27/92 OK for vehase pm P. Brachy Bt THE WHITE HOUSE Office of the Press Secretary For Immediate Release STATEMENT BY THE PRESS SECRETARY Italian President Francesco Cossiga will meet with the President on April 7 to bid farewell. Cossiga is leaving office this summer. The two leaders will discuss world developments and bilateral relations. THE WHITE HOUSE WASHINGTON 3/26 Rose, for your request from Nibha & Saily Ranh, PaiD nikki - be noted that your files show before anything is ack. to Barry Landon, give us us a call, -Rse 2-26-92 Rose: We will check with you before answering any future Landau gifts. However, please note that this gift was acknowledged by Susan Porter Rose and you may want to include her in the loop. Nikki Gifts should be the office to answer correspondence yes! p.s. It is for this reason that White House smg for gifts. Also, I have made a note on our computer regarding this donor's status. WHGSUMRY GIFT UNIT SUMMARY REPORT (PRESIDENTIAL) 03/03/92 Records logged between 02/20/92 and 02/26/92 Donor Group: GENERAL PUBLIC PAGE 6 Name and Address of Donor Description of gift Value (9210185) 92/02/18 MR. BARRY LANDAU ORIGINAL DRAWING. INK DRAWING OF MICKEY MOUSE WITH A $45 PRESIDENT BUSH '89 PIN; LETTERED "HATS OFF TO OUR NEXT PRESIDENT BARRINGTON ENTERPRISES INC. GEORGE BUSH", (SIGNED) "MICKEY MOUSE '88." 60 WEST 57TH STREET NEW YORK, NY 10019 Sensite Current Location: ARCHIVES/PRESIDENTIAL LIBRARY (9210198) 92/02/18 MR. ROGER LOEMAN REPRODUCTIONS OF PEN-DRAUGHT OF CHRISTOPHER COLOMBUS. $4 HEIMOLENSTRAAT 44 3-6" X8" AND 1 - 10" X7". B/9100 SINT NIKLAAS ARCHIVED BECAUSE OF COLUMBUS ANNIVERSARY. BELIZE Current Location: ARCHIVES/PRESIDENTIAL LIBRARY (9210199) 92/02/18 REVEREND FATHER PAPERBACK BOOK. "PAPERS FROM HARVARD UNIVERSITY" BY THE $9 V. ANTONY JOHN ALAHARASAN REV. DR. V. ANTONY JOHN ALAHARASAN, PH.D., PUBLISHED BY ST. JOHN CHURCH VANTAGE PRESS, 1991. 5 ST. JOHN COURT ARCHIVED BECAUSE COMPARES THE BELIEFS OF DIFFERENT RELIGIONS. CROMWELL, CT 06416 Current Location: ARCHIVES/PRESIDENTIAL LIBRARY (9210212) 92/01/14 MS. MARYBETH MORGAN AND PHOTO'PIN. 1 1/2" X 2" PIN. PICTURES MRS. BUSH AND GEN. $10 DAVID J. KACAR POWELL DANCING AT THE RECEPTION FOR BLACK APPOINTEES IN STARR YNIGHTS THE BUSH ADMINISTRATION. 2309 SCROGGINS ROAD ALEXANDRIA, VA 22302 Current Location: ARCHIVES/PRESIDENTIAL LIBRARY THE WHITE HOUSE copy WASHINGTON February 10, 1992 Dear Barry, Your gracious letter to Mrs. Bush and the box of gifts you BO kindly sent her are deeply appreciated. We are sorry to hear about the broken pipes in your apartment, but hope that you have been able to put things back together as soon as possible. As Mrs. Bush said optimistically about their house in Maine: "Unlike Humpty Dumpty, this can be put back together again." Although it will not be possible to get together with Mrs. Bush, your inquiry is appreciated as are your efforts on behalf of President Bush. I am sure Mrs. Bush will want me to convey her appreciation and best wishes, Sincerely, Susan Porter Rose Chief of Staff to Mrs. Bush Mr. Barry M. Landau President Barrington Enterprises Inc. 60 West 57th Street New York, New York 10019 Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 02. Memo Nikki Richnow to Gift Unit Staff 6/5/90 (b)(6) Re: Donor (1 pp.) Collection: Bush Presidential Records Office of the Chief of Staff Phillip D. Brady Files Record Group: Bush Presidential Records Office: Chief of Staff to the President, Office of the Series: Brady, Philip D. Subseries: WHORM Cat.: File Location: Chron File 3/92 [1] Date Closed: 2/21/2001 OA/ID Number: 05483-006 FOIA/SYS Case #: 1999-0735-F Appeal Case #: Re-review Case #: 2005-0331-S Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRAJ (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes I(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 02a. Memo Nikki Richnow to Staff/Volunteers 3/26/92 (b)(6) Re: Gifts from Barry Landau (1 pp.) Collection: Bush Presidential Records Office of the Chief of Staff Phillip D. Brady Files Record Group: Bush Presidential Records Office: Chief of Staff to the President, Office of the Series: Brady, Philip D. Subseries: WHORM Cat.: File Location: Chron File 3/92 [1] Date Closed: 2/21/2001 OA/ID Number: 05483-006 FOIA/SYS Case #: 1999-0735-F Appeal Case #: Re-review Case #: 2005-0331-S Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRAJ agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRAJ (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. CoS RB THE WHITE HOUSE WASHINGTON DATE: 3/23/92 07 TO: SAMUEL K. SKINNER FROM: PHILLIP D. BRADY Assistant to the President and Staff Secretary The attached has been forwarded to the President Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 03. Memo Roger B. Porter to the President 3/24/92 P-5 Re: Response to Your Note (5 pp.) Open on Expiration of PRA (Document Follows) By (NLGB) on 6/7/05 Collection: Bush Presidential Records Office of the Chief of Staff Phillip D. Brady Files Record Group: Bush Presidential Records Office: Chief of Staff to the President, Office of the Series: Brady, Philip D. Subseries: WHORM Cat.: File Location: Chron File 3/92 [1] Date Closed: 2/21/2001 OA/ID Number: 05483-006 FOIA/SYS Case #: 1999-0735-F Appeal Case #: Re-review Case #: 2005-0331-S Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA) (b)(2) Release would disclose internal, personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile THE WHITE HOUSE WASHINGTON March 24, 1992 02 MAR 26 AIO : 41 MEMORANDUM FOR THE PRESIDENT FROM: ROGER B. PORTER RBP SUBJECT: Response to Your Note Three immediate reactions. Your thoughts on "The Vision Thing" clearly lay out a sense of direction for the country. They reflect an idealism that is grounded in reality. Moreover, the goals you outlined attend to both the quantity (standard of living) and quality (a better America) of life. You specifically asked for suggestions regarding: (a) helping others and caring about people; and (b) "fairness." First, the matter of helping others. 1. One of the most memorable and uplifting phrases of your presidency is the phrase "kinder and gentler." It suggests an America that helps the poor, the homeless, and the least fortunate in our society. It conveys the sense of a society that is compassionate and generous -- a society that cares. 2. "Kinder and gentler" is reflected in the Americans with Disabilities Act, in your approach to civil rights, in your child care legislation where the benefits are targeted to the most economically needy families, in your dramatic expansion of resources for Head Start, in your health care proposals that provide a tax credit or deduction for those least able to afford health insurance. 3. But, an America that cares is reflected in more than simply government policies or programs. De Tocqueville asserted that America was great because she was good. And the goodness that he saw was found in the daily lives of American citizens. Americans felt a moral sense of obligation to help others. 4. This help does not primarily involve doing things for others, but helping others to help themselves. As the Oriental proverb reminds us: "If you give a man a fish, you feed him for a day; if you teach a man to fish, you feed him for a lifetime." The reciprocal of help is the notion of responsibility on the part of the recipient. -2- 5. The Americans with Disabilities Act does not consist in doing things for the disabled, but in paving the way for bringing the disabled into the mainstream of American life. Likewise, your approach to civil rights rejects the notion of quotas and embraces the notion of equality of opportunity. 6. In short, perhaps the line you are looking for is: As a people and as a government, we must reach out to the poor, the homeless, and the most needy in our land to help them help themselves. Second, the matter of "fairness." 1. During much of the last half century Americans have vigorously debated two concepts of "fairness" often under the name of equality. One concept is equality of results; the other is equality of opportunity. 2. Those who are most concerned with equality of results tend to be uncomfortable with the outcomes produced by free markets. They are interested in government playing an active role in redistributing income and other types of benefits. They are comfortable with and support quotas. 3. Those who are most concerned with equality of opportunity see themselves as committed to opening doors, to allowing everyone to share in a prosperous economy. They see government creating the conditions whereby the tide will rise; and that this rising tide will lift all boats. Government plays an important role in removing barriers to the full participation of all citizens in the economic life of the country. 4. Your enterprise zone legislation or Job Training 2000 initiative are illustrative of the kind of policies designed to help facilitate equality of opportunity. 5. In short, the "fairness" you advocate is inextricably linked with the concept of opportunity, not with the notion of equal results. 6. A line that attempts to summarize this is: We must make America a land of opportunity for all our citizens so that every citizen is able to reach his or her potential. A short paper on themes I wrote last month that you may find useful in thinking about how we convey our message is attached. Attachment February 22, 1992 Themes Three Concerns Perhaps the public opinion polling data that is of most concern is the large number of Americans who believe we are on "the wrong track.' The explanations they offer vary enormously, but their concerns seem to fall into one of three general categories: 1. The belief that the economy is in a rut and that little is being done to get it out. In short, the government (the President and the Congress) is simply waiting and hoping things will get better. 2. Anxiety about whether we will be able to compete against Japan, Germany, and other industrialized nations. Are we going to become a second-class economic power? 3. A sense that we have lost our moral compass as a nation, that we have departed from fundamental values, and that the fabric of our society is deteriorating. Three Positive Themes One possible approach is to frame positive themes that organize our policies in a way that addresses these three general sets of concerns. Specifically: 1. The theme of a dynamic, growth-oriented America. This theme would explicitly convey a sense of dynamism and a commitment to change. It would focus on: Stimulating investment in productive capital and real estate (15% Investment Tax Allowance, modified AMT, $5,000 tax credit for first home, penalty-free IRA withdrawal, modified passive loss rule); Creating incentives for entrepreneurship (capital gains reduction, enterprise zones); Producing a revolution in American education (This could reference the partnership with the Governors and the National Education Goals); Aggressively expanding exports and opening markets for U.S. goods and services (Uruguay Round, NAFTA, Enterprise for the Americas). -2- 2. The theme of an internationally competitive America. This theme would focus on the initiatives we have advanced to enhance U.S. competitiveness during the coming decade. Specifically: Reducing the growth of government spending and government borrowing (Orderly reduction in defense spending; domestic discretionary freeze, personnel freeze; 246 programs eliminated; Caps on mandatory spending and subsidies); Increasing private saving and investment (Capital gains, IRA plus proposal); Enhancing research and development (Permanent R&E tax credit, 861 allocation rules, record levels of Federal R&D spending, technology transfer from Federal laboratories) Strengthening our workforce (Job Training 2000 and America 2000) ; and Reducing regulatory and legal burdens (Regulatory review initiative, civil justice reform, tort reform). 3. The theme of a good America. This theme would focus on restoring fundamental values and emphasizing a sense of stewardship, service, and responsibility. Strengthening families (Increasing the personal deduction for children, student loan interest deduction, penalty-free IRA withdrawals for health, education or first home purchases); Providing safe, crime-free neighborhoods and communities (Comprehensive crime proposal, drug strategy, weed and seed) ; Trusting Americans to make wise choices for themselves and their families (Choice in child care, health, and education). Providing affordable health insurance for all Americans while maintaining the quality of the U.S. health care system. -3- Three Defining Issues In addition to three positive themes that convey action and that provide a sense of direction, three issues can help frame the choices America faces in 1992. 1. Economic Growth vs. Redistribution In contrast to the President's emphasis on economic growth (expanding the size of the pie) many Democratic Party proposals have as their essence increased redistribution (dividing up the pie more "fairly"). Rather than taking from one group to give to another, the President is focusing on lifting the entire system. He recognizes that it is economic growth that creates jobs and raises standards of living. 2. Government Control vs. Individual Choice In at least three crucial areas that affect the lives of most Americans, the President has sought to enhance individual choice and not pursue a path leading to more governmental or bureaucratic control. Health Care (National health insurance/pay or play VS. Increasing access for needy Americans to private health insurance); Child Care (Funding a child care provider syndrome vs. giving needy parents resources and the freedom to choose child care arrangements for their children); and Education (Current system VS. school choice for\students and their parents). 3. Liberalized trade and investment VS. Economic Nationalism and Protectionism The President has a strong record of expanding export opportunities and opening foreign markets to American goods. Many of the Democratic candidates favor explicitly protectionist legislation and oppose negotiation of a North America Free Trade Agreement and other trade liberalizing measures. Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 03a. Notes The President to Roger Porter 3/14/92 P-5 Re: The Vision Thing (2 pp.) Open on Expiration of PRA (Document Follows) By (NLGB) on 6/7/05 Collection: Bush Presidential Records Office of the Chief of Staff Phillip D. Brady Files Record Group: Bush Presidential Records Office: Chief of Staff to the President, Office of the Series: Brady, Philip D. Subseries: WHORM Cat.: File Location: Chron File 3/92 [1] Date Closed: 2/21/2001 OA/ID Number: 05483-006 FOIA/SYS Case #: 1999-0735-F Appeal Case #: Re-review Case #: 2005-0331-S Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRAJ agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. pold March 14, 1992 The Vision Thing 1 - World Leadership to guarantee that our children Live in peace, free from the fear of nuclear war in a world where all people know the blessings of democracy and freedom. Leadership at Home to guarantee a better America That means strengthening the American Family (family values) It: sand bein the best in Education. It means winning the war on drugs and crime. It means striving for a society free of bigotry and hate To achieve this 'vision' we must remain as the active Leader the entire world. We must be sure our word is credible that means we must not only have the convictions about democracy and freedom, but we must have a strong National Defense posture. our security comes first but the security of other friends around the world is vital too. To achieve the domestic 'vision' we must fully implement America 2000 in education. That program, with its emphasis on Math and Science etc will guarnatee our leadership in the highly competitive evolving world. To reasoure Amricans abvout their standard of living and their own prosper must expand, not shrink, our involvemnt and leadership international trade. We very way possible to strengthen the American family of involvement in schools; community action program that build on our "Points of Light" Concept To address family concerns on health care we must press for prompt enactment of a new health care plan. FROM THE PRESIDENT CAMP DAVID And to guarantee our prosperity we must make a majhor effort to control the ever spiralling debt of this country. The two charts attached (prepred, I believe by Gregg Petersmeyer) summarizes much of the above very well. "Family, Jobs, Peace" can be expanded to : World Peace and Freedom Abroad led and guaranteed by a strong America. At home, domestic tranquility where family is strengthened, educational excellence achieved, the threat of drugs and crime eliminated, and the spirit of America is renewed by governemnt being close to the people and by a 'points of light' concept enhanced, a concept which appeals to the better nature of man, a concepot of neighbor helping neighbor. FROM THE PRESIDENT a 0 Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 03c. Charts The Bush Framework (2 pp.) 2/7/92 P/5 on Expiration of PRA By Collection: Bush Presidential Records Office of the Chief of Staff Phillip D. Brady Files Record Group: Bush Presidential Records Office: Chief of Staff to the President, Office of the Series: Brady, Philip D. Subseries: WHORM Cat.: File Location: Chron File 3/92 [1] Date Closed: 2/21/2001 OA/ID Number: 05483-006 FOIA/SYS Case #: 1999-0735-F Appeal Case #: Re-review Case #: 2005-0331-S Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. THE BUSH FRAMEWORK (How We Will Reach the Promised America) THE ENGINES OF HOPE THE PROMISED AMERICA (What We Seek) Commitment to Children, Youth Developing Good Character and Values, and Strong Families Economic Growth Excellent Schools and a Culture that Fosters } Lifelong Learning Community Action Meaningful Employment Opportunities and the Hope of Economic Advancement Government Action A Decent, Drug Free and Safe Place to Live in a Clean Environment Quality Health Care and a Sense of Well Being AMERICA'S FOUNDATION (Our Fundamental Beliefs) Core Values New World Order Freedom Peace and Security Strong Families Spread of Democracy Individual Responsibility Stable and Dynamic World Economy Hard Work Free and Fair Trade Opportunity for All The White House Office of National Service February 7. 1992 THE FORCE FOR CHANGE: THE BUSH PLAN FOR THE PROMISED AMERICA The Fundamental Family Jobs Message of George Bush Peace Requires Five Missions Commitment Excellent Meaningful A decent, Quality for America to children schools and employment drug-free health care to Give the and youth a culture opportunities and safe and a sense Message developing that and the hope place to of well being good fosters Meaning of economic live in character lifelong advancement a clean and values learning environment And Three Engines of Hope to Accomplish These Missions Economic Community Government for America Growth Action Action March 3, 1992 THE WHITE HOUSE WASHINGTON 3/26/92 Shily, Jil like a Signed copy of this Rouly THE WHITE HOUSE WASHINGTON DATE: 26 MAR 92 TO: Shirley Green FROM: WILLIAM B. CALDWELL, IV Associate Director Office of Public Liaison Room 191, OEOB, x7845 REF: Ltr (POTUS) to Vietham Vet. Mem. Comm. Leigh Ann metzger asked me to pass this draft letter to you. B.ll Coldrall OK for signature per Phil. John l. Hardwr 3/26/92 DRAFT OF GB LETTER INITIALS: GB / td / Ag DOCUMENT TITLE: /fo/p/scruggs.j-td DRAFT DATE/LETTER DATE: Mar 26 1992/ CORRESPONDENCE #: 676113 CLEAR WITH: Leigh am CC: Metzger, John Gardner WHCC: CORRESPONDENCE ADDRESSED TO: ENCLOSURES AND SPECIAL INSTRUCTIONS: Mr. Jan C. Scruggs, Esq. CLEAR WITH BRADY, Leigh Ann Metzger President CC: Bill Caldwell, Room 191 Vietnam Veterans Memorial Fund, Inc. CC: t.donovan 815 Fifteenth Street, NW Suite 601 CC: Doro Bush (? Patty Presoch asked Washington, D.C. 20005 also up to date. See note) that she be hept chuck agel typing: note 20ddressees on original droft. I didn't Dear Jan: Chuch: know how to computer arrange a I am writing to express my wholehearted admiration and support as you begin to observe the Vietnam Veterans Memorial Tenth Anniversary. It was a pleasure to meet with your advisory committee last December in recognition of this milestone. Known to millions of Americans simply as "The Wall," the Vietnam Veterans Memorial has helped to bring much deserved honor to the men and women who served our country in Southeast Asia. During the past decade, the Memorial has also helped to bring healing, not only to bereaved families and friends, but also to a Nation that was once bitterly divided by the controversy surrounding the war in Vietnam. Indeed, most walls are built to divide. This wall was built to unite. Today, Americans have a profound new appreciation for our Vietnam veterans and for each of the fallen heroes whose names are enshrined in the Memorial. It is my hope that as we mark the 10th anniversary of this for great symbol of courage and sacrifice, we will continue the process of reconciliation and renewal. efforts On behalf of all Americans, I thank you and the members of your advisory committee for your contributions toward that worthy goal. You have my best wishes for the months ahead. Corres. #: 676113 CC to Connie of Cos and and 5 resident Staff Secretary THE WHITE HOUSE WASHINGTON XX Information 03/26/92 Action Let's Discuss FOR: CONNIE HORNER FROM: PHILLIP BRADY Assistant to the President and Staff Secretary X Information Action Let's Discuss UNITED STATES AND EXCHANGE AMERICA SECURITIES AND EXCHANGE COMMISSION WASHINGTON. D.C. 20549 MCMXXXIV OFFICE OF THE COMMISSIONER March 26, 1992 The Honorable George H.W. Bush, President of the United States The White House Washington, D.C. 20500 Dear Mr. President: For the three years of your Administration and the three prior years, I have had the privilege of serving as a Commissioner of the Securities & Exchange Commission. President Reagan twice honored me with nomination as Commissioner, and you graciously designated me Acting Chairman of the Commission during the brief 1989 interregnum. I am proud to say that I have, throughout these six years, stood and spoken for the principles of regulatory administration and regulatory reform that are the hallmark of the Bush and Reagan presidencies. Now it is time for me to give place to others. I thank you for the opportunity of service in the Government of the United States, and I wish you continued wisdom as you lead our Nation in the years ahead. I hereby resign as Commissioner effective at the end of the day March 31, 1992. Very truly yours, Edward H. Fleischman THE WHITE HOUSE WASHINGTON Date: March 25, 1992 32 MAR 25 P5: 01 TO: Phil Brady FROM: RONALD C. KAUFMAN Deputy Assistant to the President for Political Affairs Room 132, OEOB, x2135 Thought you might be interested in the attached. list of question- naires from Bush-Quayle '88. P.S. I'd appreciate it if you would return it when you are through. Thank you. 03/26/92 Thanks. Phil Brady ICC OA Cod THE WHITE HOUSE WASHINGTON DATE: 03/25/92 TO: SAMUEL K. SKINNER FROM: PHILLIP D. BRADY Assistant to the President and Staff Secretary The attached has been forwarded to the President Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 04. Memo C. Boyden Gray to the President 3/24/92 P/S Re: Judicial Selection (2 pp.) Open on Expiration of PRA (Document (NLGB) Follows) on 1/19/09 By Collection: Bush Presidential Records Office of the Chief of Staff Phillip D. Brady Files Record Group: Bush Presidential Records Office: Chief of Staff to the President, Office of the Series: Brady, Philip D. Subseries: WHORM Cat.: File Location: Chron File 3/92 [1] Date Closed: 2/21/2001 OA/ID Number: 05483-006 FOIA/SYS Case #: 1999-0735-F Appeal Case #: Re-review Case #: 2005-0331-S Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA) (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIAJ personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. THE WHITE HOUSE WASHINGTON 12 MAI 25 PE. March 24, 1992 MEMORANDUM FOR THE PRESIDENT C. BOYDEN GRAY smh FROM: COUNSEL TO THE PRESIDENT SUBJECT: Judicial Selection In response to a letter from Senator Biden, you wrote me a note asking about judicial vacancies. See Tab A. I have attached a draft response to Senator Biden for your approval. See Tab B. The status is as follows: with the nominations sent up recently, and another two that should go early this week, we will have 54 judicial nominations with all paperwork complete pending before the Committee. 17 are circuit and 37 are district court nominees. We have an additional 15 district court nominees whose ABA and FBI clearances are complete. We are presently reviewing their FBI files. We wanted to first get to you as many circuit court candidates as possible, so that Senator Biden would not be able to give date of nomination as an excuse for postponing action on the circuit court nominees. There are tentative selectees in clearance for an additional 30 vacancies, an additional 10 where the selection process is underway, and another 20 or so that no work has been done on. We therefore think we could have about 90-100 nominations ready to go by mid-May. This means the executive branch is actually doing very well on its job. As you will remember, the judgeship legislation signed in December 1990 created an additional 85 positions. The fact that we have only 30 for which no selection has been made, which is the normal "float" due to retirements, means that the selection process is current. The Senate is beginning to see the results, but is about two weeks away from feeling them fully. Your response to Biden can point that out, let him know that we have made and continue to make extraordinary efforts to fill these vacancies, and ask him to make a corresponding effort to go well beyond the usual level of Judiciary Committee activity to meet the need to fill these vacancies. (The Committee did so in both 1979 and 1985, after new judgeship legislation was passed.) 2 Finally, on whether we should give any kind of favorable response to Biden regarding his interest in setting up a process for a possible future Supreme Court vacancy: I'm really sorry to come to this conclusion, but I'm afraid I think we cannot give an inch that. I think you'll find the following example persuasive. Had on we given Biden any opportunity to give us his views about the last vacancy, he almost certainly would have said "Don't send Clarence Thomas. He won't get through." Then, if you did nominate Thomas, Senator Biden would have been able to say he warned the White House not to do so, and this would have given Senators an entirely procedural reason for opposing Thomas. In short, the trouble with any kind of contact with Senator Biden on this subject, no matter what terms we attempt to set, is that we cannot control what Senator Biden will say, or how he will describe what transpired. (The second difficulty could perhaps be resolved by insisting that the communication be in writing, but he would still control what the letter says and would use it for tactical advantage, so I just don't think we should invite it.) Finally, as we discussed, this really has never been done with the leadership of the opposing party, and I think you are rightly very hesitant to set that precedent. Accordingly, everyone involved in judicial selection believes you should say nothing to Senator Biden on this subject, and his letter to you does not in fact require a response on this point. cc: Sam Skinner Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 04a. Note The President to Boyden 3/10/92 P-5 Re: Judicial Vacancies (1 pp.) Open on Expiration of PRA (Document Follows) By (NLGB) on 6/7/05 Collection: Bush Presidential Records Office of the Chief of Staff Phillip D. Brady Files Record Group: Bush Presidential Records Office: Chief of Staff to the President, Office of the Series: Brady, Philip D. Subseries: WHORM Cat.: File Location: Chron File 3/92 [1] Date Closed: 2/21/2001 OA/ID Number: 05483-006 FOIA/SYS Case #: 1999-0735-F Appeal Case #: Re-review Case #: 2005-0331-S Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. PREST THE OF THE UNITED or March 10, 1992 Boyden cc: SS The attached letter ( summary) from Biden makes me wonder where we stand on vacancies. Do we really have 80??? Also would it be worth your sitting down with Biden, asking him for his views on Court, long before we need a nominee? Please discuss. И attachment: summary of a Biden Letter1 FROM THE PRESIDENT THE WHITE HOUSE WASHINGTON MARCH 6, 1992 THE PRECIMENT 22 MAR 6 P5: 49 MEMORANDUM FOR: PHIL BRADY FROM: NICHOLAS CALIO nc SUBJECT: LETTERS FOR THE PRESIDENT'S READING FILE Enclosed are several letters which the President recently received from Members of Congress. Sen. Joseph Biden (D-DE) "I too am happy that we worked out how to handle the FBI reports. We can now (and will) move on the nominees. In the mean time, Mr. President, I hope Justice will be able to move to fill some of the more than 80 vacancies that presently exist. And if you will forgive me for saying so, I still think it would be useful to consider a mechanism?? for the advice part of the advise and consent process. It is going to be a difficult year if there is another spot to fill." Rep. Christopher Shays (R-CT) "I just want to let you know I am eager to help you in any way I can, especially in your efforts to be reelected as President. If there is ever anything I can do to help please let me know." Sen. Strom Thurmond (R-SC) Expresses his appreciation for the President coming to South Carolina and speaking to the Southern Republican Leadership Conference. Mentions his efforts on the President's behalf and offers his thoughts and support. Finally, he attaches a copy of an AP article about his speech at the Conference. Sen. Ted Stevens (R-AK) "You did miss me at your announcement - Catherine was there but I was in Alaska, actually in Fairbanks and Anchorage that day. We are with you - call on me whenever I can be of help. And take care of yourself. As I told you, I've reached the point that I am older than the President - and can give you that advice from the vantage point of an older Senator" THE WHITE HOUSE WASHINGTON Dear Joe: Thanks for your letter. I'm delighted to hear that you want to move judicial nominations, and I understand you have about 54 pending. I know you just received 18 of these recently. I've also checked into your question about the 80 vacancies (now 62, given the recent 18 nominations) I am told the high number is primarily the result of the legislation creating 85 new positions that you passed with our support at the end of 1990 as part of our shared commitment to combatting crime. I understand we have been working very hard on these and have about 50 additional people in clearance, about 15 of whom are quite close to nomination. We are also laboring diligently on the rest. Therefore, all in all I think you can count on having a total of about 70 nominations by the end of the month and a total of about 100 nominations arriving in a reasonably steady flow by the end of June. I hope your Committee can put in a little overtime starting right now, with an eye toward clearing out in the next two months the nominations presently pending before you. That way you would be able to start work immediately on additional nominations as soon as they come up. (I'm sorry for the "bubble," but I'm afraid it's an inevitable result of the new judgeships.) I realize that this means the Committee will have to hold more than the usual number of hearings in the next few months and for that matter for the rest of the year. 2 But I'm told the Senate confirmed about 85 judges in 1985, after the previous judgeship bill creating a similar number of judgeships was passed in 1984, and about 135 in 1979, after a judgeship bill creating some 150 new seats passed in 1978. I would hope we could do at least that well this year. I'm very grateful for your assistance in this matter. Sincerely, The Honorable Joseph R. Biden, Jr. Chairman Committee on the Judiciary United States Senate Washington, D.C. 20510 we House today. want and forts to More GOP to CONGRESSIONAL subvite LEADERSHIP 10:00am 3/25 PRESS IN ROOM) thank the Republican Members of the Senate leadership for coming down tally by importantly, I want to thank you all for your help last week in trying to stop the Democratic tax increase bill. They passed the bill, but only narrowly. I vetoed it and, thanks to you all, we've got veto strength which we will use today. show when the House attempts to override the veto Give lough sawalide forder program for heal limito of the you univent. my obsibnl Phil is the in Plase you! Card 2 I'm looking forward to your support on the tax increase veto today. I'm also grateful for your support in opposing the firewall bill which is coming up today in the Senate and tomorrow in the House. That bill would eliminate one of the only protections the taxpayer has against wasteful federal spending -- the spending caps that are part of the Budget Enforcement Act of 1990. I hope we can win that vote for controlling government spending. If we can't, I will veto it too. We can't afford business as usual on federal spending. The American people want change and that means Congress must change. By fighting this bill and by supporting our line item rescission program, we're going to make a change in attitude. Card 3 (AFTER PRESS LEAVES) -- Thanks again for coming down, and a special thanks to all of you who came down for my speech last Friday. (After giving a speech on how Congress works, I hope we are still on speaking terms). Let me mention at the outset that we are going to have to conclude this meeting at about 10:45 instead of 11 a.m. -- Naturally, I value your thoughts on the events of last week and especially on where we go from here. In my speech, I tried to call to the attention of all Americans how our Democrat friends are doing business. And, I think we succeeded. Card 4 -- In the coming weeks, I'll be talking more about the subject of Congressional reform. I have some more ideas about how to instill more "fairness" in your work place. Because this so directly effects you, I welcome your suggestions and thoughts on this issue. -- I also want to thank the Senate Republicans for hanging tough last week in support of my veto on George Mitchell's China MFN bill. I am convinced our policy is going to produce results and I'm especially grateful to Bob Dole and Bob Packwood for your leadership. Card 5 I know the House Democrats will attempt to override my veto of the tax increase today. I also understand that both chambers may consider the bill to break down the budget firewalls this week. We have been working hard on getting Democrat support to defeat this bill and I am optimistic we can succeed. Bob (Michel), you may want to brief us on where we stand in the House on these and other matters, then we can go around the room. THE WHITE HOUSE WASHINGTON 03/24/92 DATE: NOTE FOR: BOYDEN GRAY The President has reviewed the attached, and it is forwarded to you for your: Information Action Thank you. PHILLIP D. BRADY Assistant to the President and Staff Secretary (x2702) cc: 3-24-92 THE PRESIDENT Ran - Bonden told me you were superb at the trial in Miami. Im sony you had to go though that, busy as you are; but, given what 0. Boyden told me, I in glad you did it. All But - G Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 05. Memo C. Boyden Gray to the President 3/20/92 P-5 Re: Dan Murphy Testimony at the Noriega Trial (1 pp.) Open on Expiration of PRA (Document Follows) By (NLGB) on617105 Collection: Bush Presidential Records Office of the Chief of Staff Phillip D. Brady Files Record Group: Bush Presidential Records Office: Chief of Staff to the President, Office of the Series: Brady, Philip D. Subseries: WHORM Cat.: File Location: Chron File 3/92 [1] Date Closed: 2/21/2001 OA/ID Number: 05483-006 FOIA/SYS Case #: 1999-0735-F Appeal Case #: Re-review Case #: 2005-0331-S Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act- [44 U.S.C. 2204(a)] Freedom of Information Act- [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. THE PRESIDENT MAS 3/24/92 THE WHITE HOUSE WASHINGTON March 20, 1992 J2 MAR 20 P5: 41 MEMORANDUM FOR THE PRESIDENT FROM: C. BOYDEN GRAY MG SUBJECT: Dan Murphy Testimony at the Noriega Trial Some time ago you asked me to check with Dan Murphy about his testimony at the Noriega trial. I felt that it would be inappropriate for anyone from the White House to contact Dan directly about his testimony, but I had my staff talk to the Justice Department prosecutors handling the case. The prosecutors report that Dan did an outstanding job. He was called by Noriega's lawyers to help them establish that the Panamanian government cooperated fully with the South Florida Task Force. In response to defense questions, Dan acknowledged that the Panamanians invariably consented to U.S. boarding of Panamanian flag vessels when we asked them to do SO. During cross examination, the prosecution established that this was merely a matter of the Panamanians bowing to our requests; Dan stated that he could recall no instances in which the Panamanians contacted us to suggest that we board a suspect vessel. About the South Florida Task Force itself and your role in organizing it, Dan offered nothing but praise. He stated that you organized the task force at President Reagan's direction, that you hit the ground running, and that the task force had an immediate and substantial impact on the crime rate in South Florida. In sum, the prosecutors report that Dan's testimony helped Noriega hardly at all, and portrayed you in a very favorable light. I have the transcript of Dan's testimony should you want to read what he had to say. THE WHITE HOUSE WASHINGTON DATE: 03/24/92 GENERAL SCOWCROFT NOTE FOR: The President has reviewed the attached, and it is forwarded to you for your: Information XXX X Action Thank you. PHILLIP D. BRADY Assistant to the President and Staff Secretary (x2702) cc: THE WHITE HOUSE WASHINGTON March 24, 1992 Dear Billy Mc: Thanks for your great letter. It sounds like a wonderful visit. We are high on President Sassou, who is really trying hard to move towards a more democratic way. His problems are immense. I will share with Brent Scowcroft his willingness to help with the troubling problems of Zaire. Things are getting a little better now as the economy starts to show some life. I am concentrating on the nation's problems, not on the campaign. Thanks so much for checking in. All best, Mr. William A. McKenzie as McKenzie and Baer Attorneys 1525 Elm Street, Second Floor Dallas, Texas 75201 MCKENZIE AND BAER ATTORNEYS 1525 ELM STREET. SECOND FLOOR DALLAS. TEXAS 75201 past 214-954-1113 WILLIAM A. MCKENZIE TELEX: 73-0820 March 18, 1992 "MCKENZIE-DAL" FAX: 214-954-0989 The Honorable George Bush President of the United States The White House 1600 Pennsylvania Avenue, N.W. Washington, D.C. 20500 Dear Mr. President: I have just returned from nearly 31 weeks in the Congo (Brazzaville) and South Africa. I heard of our superb victory on Super Tuesday via short-wave radio in the brush in South Africa and, of course, upon returning home I was exhilarated by your victories in Illinois and Michigan. While in Brazzaville, I had the pleasure and oppor- tunity to meet for several days with President Denis Sassou. President Sassou was effusive in telling me how proud he was to have a visit with you and Barbara in Washington. The autographed picture with you and President Sassou occupies a very special place in the Presidential Mansion in Brazzaville and also there is a copy hanging on the first floor of our Embassy in Brazzaville. Our Ambassador there, J. D. (Dan) Phillips, is outstanding and could not have been more accomodating and helpful to me. He is a special friend of Jane and Jack Irwin, our former Ambassador to France during the Nixon administration, and who happen to be friends of Sally's and mine. Jane Irwin is originally from Fort Worth and went to Hockaday School here in Dallas with Sally. Dan Phillips is also a very great friend of Ursula and Ed Meese and I might add he serves you and our country well in the Congo. President Sassou asked me to convey to you, first, his very best wishes and his prayer for y' ir re-election, and he told me to tell you as follows: "It S my (President Sassou's) desire to have a free and peaceful election in the Congo SO that the Congo can be used and seen as an example of how democracy works for the benefit of all Africa, speci- fically Zaire, Angola and all of Central Africa. My primary mission and role is to stabilize the Congo and its govern- The Honorable George Bush March 18, 1992 Page 2 ment SO that Gabon and all of Central Africa will follow the Congo's lead." President Sassou then said that, if possible and if in any way he can be of help to our State Department or to the United States, he will make himself available to assist in solving the problems of Zaire by arranging a meeting bet- ween himself, the Prime Minister from Katanga and Mobutu. The President told me that it is critical to all of Africa to bring peace and harmony and stabilize the condition of Zaire and that any way that he could be used to effect such a condition, he was available. He also mentioned to me a need for peaceful solution to the problems presently existing in Cabinda bordering on the Congo and being a part of Angola. President Sassou was profuse in lauding and praising the efforts of Mr. Henry Cohen, the Director of the Office for Central African Affairs with the State Department. Mr. President, I am only being a messenger in sending President Sassou's greetings to you, but I ' want you to know how extremely proud Sally and I are of you and your Presidency. You are admired all over this world for being the finest President we have ever had and Sally and I both are honored to be able to participate in your re-election efforts. I send my love and best wishes to Barbara and, as always, my kindest regards to yourself. Sincerely, William Birry A. McKenzie m₂ WAMcK/cas CC: President Denis Sassou Ambassador J. D. Phillips Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 06. Note The President to Marlin 3/24/92 P/5 Re: Vision (1 pp.) Open on Expiration of PRA (Document Follows) By 01 (NLGB) on 6/7/05 Collection: Bush Presidential Records Office of the Chief of Staff Phillip D. Brady Files Record Group: Bush Presidential Records Office: Chief of Staff to the President, Office of the Series: Brady, Philip D. Subseries: WHORM Cat.: File Location: Chron File 3/92 [1] Date Closed: 2/21/2001 OA/ID Number: 05483-006 FOIA/SYS Case #: 1999-0735-F Appeal Case #: Re-review Case #: 2005-0331-S Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. UNITED March 24, 1992 Marlin, of all things- Johnny Apple today says I lack 'vision'. How can a nice and smart guy like Apple accuse me of lacking 'vision'. Please send him last Friday's 'vision' speech. If that won't do it-send him the empowerment speech- talk about vision that says it all. The guy is simply missing a lot. Faithfully, GB CM FROM THE PRESIDENT THE WHITE HOUSE WASHINGTON DATE: 03/24/92 TO: SAMUEL K. SKINNER FROM: PHILLIP D. BRADY Assistant to the President and Staff Secretary The attached has been forwarded to the President (This was delivered to the Residence this evening. THE WHITE HOUSE The President made the call WASHINGTON at approximately 9:20p.m.) DATE: 03/24/92 PATTY PRESOCK ROSE ZAMARIA BRIDGET MONTAGNE TO: FROM: PHILLIP D. BRADY Assistant to the President and Staff Secretary The attached has been forwarded to the President (This was delivered to the Residence this evening. The President made the call at approximately 9:20 p.m.) THE WHITE HOUSE WASHINGTON March 24, 1992 02 MAR 24 P8: 51 MEMORANDUM FOR THE PRESIDENT FROM: RON KAUFMAN DECL DEPUTY ASSISTANT TO THE PRESIDENT FOR POLITICAL AFFAIRS SUBJECT: CONNECTICUT PRIMARY As per our earlier discussion, a phone call from you to the Connecticut Bush-Quayle supporters would be extremely well received. Brian Gaffney, Bush-Quayle '92 State Co-Chairman would receive the call. Other special guests would include: John Miller, Republican National Committeeman Jo McKenzie, Republican National Committeewoman Dick Foley, Connecticut Republican Party Chairman Pauline Kezer, Secretary of State Chris Burnham, U.S. Senate Candidate Johny Bush, Nephew Several hundred Bush-Quayle supporters Several members of the local press corps. NOTE: Betsy Heminway will not be in attendance as she is in Florida - 407/744-5033. Early results indicate an extremely low turnout. With 45% of the vote reporting, Republican results are: Bush 67% Buchanan 22% Uncommitted 9% Duke 2% Democrat results: Brown 38% Clinton 35% Tsongas 20% Updated results will be provided immediately upon availability. CONTACT NUMBER: 203/257-6000 x6307 THE WHITE HOUSE WASHINGTON 3/24 Connie, \ H would 60 inneciated if you could provide a response to the presidents queiton of your loche Concerned Riabi Fal only THE WHITE HOUSE WASHINGTON why 1 02 MAR 23 P8: March 9, 1992 docamis S MEMORANDUM FOR THE PRESIDENT FROM: CONSTANCE HORNER OH Director of Presidential Personnel SUBJECT: Personnel Selection - President's Committee on in the National Medal of Science I. Background The President's Committee on the National Medal of Science is authorized by Executive order 12692. The Committee shall recommend to the President individuals for the award of the National Medal of Science. II. Term Members shall serve three year terms. III. Membership The Committee shall consist of twelve members appointed by the President. The President of the National Academy of Sciences and the President's Science Advisor shall serve as ex-officio members. The President shall designate one member as chairman. The current membership is as follows: Name State Date of Appt. Term Expiration France Cordova PA 05/20/91 12/31/93 Mildred Dresselhaus MA Clearance 12/31/95 Rita RicardoCampbell CA 05/20/91 12/31/93 Herbert Woodson TX Clearance 12/31/95 Isadore Singer MA Clearance 12/31/92 Edward Frieman CA Clearance 12/31/95 James Lin IL Clearance 12/31/93 Vacant Vacant * Vacant * Vacant Vacant Vacancies Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 07. List List of Proposed Nominees (6 pp.) n.d. (b)(6) Collection: Bush Presidential Records Office of the Chief of Staff Phillip D. Brady Files Record Group: Bush Presidential Records Office: Chief of Staff to the President, Office of the Series: Brady, Philip D. Subseries: WHORM Cat.: File Location: Chron File 3/92 [1] Date Closed: 2/21/2001 OA/ID Number: 05483-006 FOIA/SYS Case #: 1999-0735-F Appeal Case #: Re-review Case #: 2005-0331-S Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - 15 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRAJ (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. THE WHITE HOUSE WASHINGTON March24, 1992 02 MAR 24 P4:07 MEMORANDUM FOR PHIL BRADY FROM: SHIRLEY M. GREEN 1mg SUBJECT: March 20 Deadline The attached draft would replace our current GB reply to mail about the economy and about other domestic initiatives. This cover letter conveys the themes that the President covered in the March 20 speech, and I suggest using the WH fact sheet to fill in the substance. APPROVE PALA DISAPPROVE COMMENTS: --ACTION RE: MARCH 20th DEADLINE-- BW/SMG Dear: Thank you for your letter and for your suggestions and ideas about President Bush's economic and domestic agenda. The President cares deeply about all those who are having hard times because of the slow-growing economy, and he understands your concerns. Please know that President Bush is determined that there will be change - - and, equally important, the right kind of change -- in our country. The President has proposed numerous initiatives to Congress to get our economy moving again and to encourage sustained economic growth and keep America competitive in our fast-changing world. President Bush believes that government polices that encourage job creation and opportunities will ensure a sound and economically healthy America. Yet, the task of changing commonsense proposals into reality is difficult when there is a fundamental difference between the Democrat-controlled Congress and the President about how to solve America's problems. The President's proposals constantly face significant opposition from the Democratic leadership of Congress, whose answer to and problems is more taxes and more Federal spending frequent that President Bush will not sign legislation if he believes it will harm our economy. In recently vetoing the Democrat-sponsored bill to raise taxes, the President announced a number of steps that he can take unilaterally to stimulate the economy, and he again called on Congress to adopt his pro-growth initiatives. Please find enclosed information about President Bush's initiates, which would reduce Federal spending, encourage investments to create jobs, reform our educational system, strengthen the criminal justice system, revolutionize the health care system, and enhance international competitiveness. It will take working together to make reform become reality. President Bush will keep pushing hard for positive change, and he appreciates having your views about these important issues. Sincerely, SMG Enclosure: 3/20/92 WH Fact Sheet PB thru Jobr NATIONAL SECURITY COUNCIL WASHINGTON, D.C. 20506 2145 March 23, 1992 12 MAN MAR 23 P2: 20 MEMORANDUM FOR PHILLIP D. BRADY FROM: WILLIAM SITTMANN w SUBJECT: Press Release on the Open Skies Treaty The proposed press release (Tab A) announces United States signature of the Open Skies Treaty on March 24, 1992 in Helsinki. We recommend it be released the afternoon of March 24, 1992. Attachments Tab A Proposed Press Release CC: Marlin Fitzwater Roman Popadiuk OK for release as appropriate for that, Thanks 123/23 THE WHITE HOUSE Office of the Press Secretary (For Release March 24, 1992) STATEMENT BY THE PRESS SECRETARY Today the United States, along with Canada and 22 European nations, signed the Treaty on Open Skies in Helsinki, Finland. In May of 1989, at a time when the immense changes seen in Europe over the past three years were just beginning, President Bush proposed that the nations of the North Atlantic Treaty Organization (NATO) and the former Warsaw Pact agree to open their territories to frequent overflights by observation aircraft from the other side. The United States believes that the greater transparency in military activities brought about by such an agreement will help reduce the chances of military confrontation and build confidence in the peaceful intentions of the participating states. The Open Skies Treaty is the most wide-ranging international confidence-building regime ever developed, covering the entire territory of North America and nearly all of Europe and the former Soviet Union. Its arrangements for observation flights using photographic, radar, and infrared sensors, and its provisions for sharing among participants the information gathered, are innovative means to help promote openness and stability in Europe in these uncertain times. Open Skies could also serve as a basis for similar arrangements in other regions of the world where there is a need to build confidence. The Treaty establishes an Open Skies Consultative Commission. In early April it will convene in Vienna, Austria, to complete work on outstanding technical and cost issues regarding Treaty implementation. The Treaty will be submitted to the United States Senate for its advice and consent to ratification once this work is finished to the satisfaction of all participants. THE WHITE HOUSE Office of the Press Secretary For Immediate Release STATEMENT BY THE PRESIDENT Today marks the ninth anniversary of the beginning of the Strategic Defense Initiative. The men and women of the SDI program have accomplished a great deal. They have proven repeatedly that we can intercept warheads in space. They have made great advances in smaller, cheaper, more sophisticated interceptors. In short, they have pushed back the frontiers of science and engineering. Moreover, the events of the past several years have proven the critical importance of missile defenses. Last year in the Gulf War, our Patriot system defended our troops and allies from Saddam Hussein's SCUD missiles. Today, the Russians join us in recognizing the value of missile defenses and have expressed interest in a global ballistic missile defense system. With the development of the GPALS missile defense system, the United States will be able to confront successfully the growing dangers of instability and missile proliferation. With the passage of the Missile Defense Act in 1991, the Congress joined the Administration commitment to fielding ballistic missile defenses. With continuing support from Congress we can achieve our goal and remove the threat of limited ballistic missile strikes for the American people and our friends and Allies. # # # THE WHITE HOUSE WASHINGTON March 19, 1992 MEMORANDUM FOR ANITA BEVACQUA THROUGH: Phil Brady FROM: Shirley M. Green Dong SUBJECT: Writer Vacancy As you know, I have been expecting to have vacancies in Special Letter Response for some time. Yesterday Meredith Chen told me = that she has set her final departure as April 15. We are currently handling a very heavy volume of mail, and the - writers are all coming in on weekends to try to keep our turnaround time manageable. Therefore, I seek your approval to... fill Meredith's WAE writer position as soon as possible. Thank you for your consideration. Crita, Cs Shiley may have mentioned, the President has recently memplarized the very high mouly Le gies to encoung timely response to correspondence. Weil sent nears out to the Departments and within the White House with uspert to the Prenditi concern and the about is also clearly on important part of meeting the need Mony theory, P.O. Talking Points PURPOSE OF THE SPEECH 1. Congress has had 52 days to act on the President's economic growth program and it failed. The Democratic leadership has deprived America of economic growth and jobs. 2. The Democrats have clearly shown they are primarily interested in raising taxes, which the President will veto. 3. Now that the tax increase question is settled by veto, Congress should promptly enact the President's economic growth program and help put Americans back to work. 4. The President believes the federal government needs to cut spending, not raise taxes. Thus he is submitting hundreds of projects for line item rescission by the Congress. These rescissions would save billions of dollars. 5. The President is for a "change" in the way government does business. The rescission action demonstrates that change. 6. The President has identified five key ways to change America: * Expand markets for American products. Prepare our workforce to compete through better education and training. Reform health care. Reform our legal system. * No tax increase and cut government spending. In summary, the themes of this speech are: A. The President wants change and the American people want reform. B. Congress failed to act. C. The President opposes a tax increase. D. The President wants his recovery program passed. E. He will do everything possible to cut federal spending and spur economic growth through Administrative actions. THE WHITE HOUSE Office of the Press Secretary FOR IMMEDIATE RELEASE March 23, 1992 The President today recognized the volunteers of the Medical Van Project of the Travelers Aid Society of Rhode Island as the 726th Daily Point of Light for the Nation. The volunteers offer quality health care and a sense of well being to homeless, medically indigent or uninsured residents of Providence. Since its establishment in 1987, the Medical Van Project has provided treatment and social service referrals free of charge to more than 9,000 homeless people, including children and senior citizens. A rotating team of 105 volunteer doctors and licensed nurses treats over sixty patients per week, making rounds in various parts of the city between 6:00 p.m. and 10:00 p.m. each night, Monday through Friday. The mobile clinic is usually located at soup kitchens, homeless and battered women's shelters, or Salvation Army facilities. Medical professionals volunteer for weekly, monthly, or bimonthly rotations. Each evening, the van is staffed by a paid driver and two volunteers, usually one doctor and one nurse. The driver records the name, age, and medical condition of each patient, while the nurse keeps track of the medical history and vital signs. The patient's history is then reviewed by the doctor, who conducts a private examination and writes a prescription or referral. For those patients who require emergency hospital care, a rescue squad is on call each evening. In addition to providing referrals for medical treatment, volunteers also direct clients to the Travelers Aid Society multi-service center which provides case management, educational programs, G.E.D. preparation, literacy training, and counseling for alcohol or substance abuse. The President salutes the volunteers of the Medical Van Project of the Travelers Aid Society of Rhode Island for exemplifying his belief that, "From now in America, any definition of a successful life must include serving others." # # # FOR FURTHER INFORMATION CONTACT: Tracey Taylor or Miah Homstad (202) 456-6266 THE WHITE HOUSE Office of the Press Secretary FOR IMMEDIATE RELEASE March 24, 1992 The President today recognized Mary Ellen Heron of Spokane, Washington, as the 727th Daily Point of Light for the Nation. Ms. Heron provides emotional and physical support to terminally ill individuals and their families. While her husband was dying of cancer, Ms. Heron, now 59, received emotional support and household assistance from friends and family. Today, as a volunteer at the Hospice of Spokane, she offers similar support to those who care for terminally ill patients. Her personal experience with terminal illness has enabled her to form close relationships with many hospice clients, transporting them to appointments, helping with household tasks, and lending assistance elsewhere as needed. Ms. Heron enables individuals providing 24-hour care for family members to take a respite from their daily routines. She volunteers as a substitute caregiver and often remains close to families after the death of their loved one. In 1991, Ms. Heron volunteered over 550 hours with the Hospice of Spokane and the Spokane AIDS Network. At the Hospice of Spokane, she has helped a number of patients who have the HIV virus. Through the Spokane AIDS Network, she has cared for both babies and adults. Currently, she helps two clients during the day and on weekends. Ms. Heron takes her message to the Spokane public by distributing literature and answering questions at health fairs and hospice training classes. She also speaks to churches and local groups on the need to care for HIV patients. She wants everyone to know that every sick person, whether afflicted with AIDS or cancer, needs to be shown that someone cares. The President salutes Mary Ellen Heron for exemplifying his belief that, "From now on in America, any definition of a successful life must include serving others.' " # # # FOR FURTHER INFORMATION CONTACT: Tracey Taylor or Miah Homstad (202) 456-6266 THE WHITE HOUSE Office of the Press Secretary FOR IMMEDIATE RELEASE March 25, 1992 The President today recognized George Milton Bird of Shelby, Alabama, as the 728th Daily Point of Light for the Nation. Mr. Bird has dedicated his life to serving his neighbors and instilling a sense of well-being among members of his community. A retired postal worker, the twice-widowed Mr. Bird, 84, is a household name in Shelby County because of the example of optimism and philanthropy he provides to those around him. Twice a week he tutors 4th and 5th graders in reading and shares with them his life experiences. On Tuesday afternoons for the past 31 years, he has visited friends and neighbors at Shelby Medical Center and Integrated Health Services at Briar Cliff. When asked what motivates him, he simply answers, "Life is a two way street. It is giving and taking, and the real happiness is in the giving." For 60 years, Mr. Bird's weekly "Good Morning" column has brightened the lives of readers of the Shelby County Reporter. He writes about "the little" things in life which people can overlook in their busy daily routines. As he makes rounds throughout the community each week, volunteering and gathering material for his weekly column, Mr. Bird can be found sharing a bag of candy and homegrown vegetables with homebound neighbors and those in need. Area residents describe him as a beacon of hope and an emissary of goodwill. The President salutes George Bird for exemplifying his belief that, "From now on in America, any definition of a successful life must include serving others." ### FOR FURTHER INFORMATION CONTACT: Tracey Taylor or Miah Homstad (202) 456-6266 THE WHITE HOUSE Office of the Press Secretary FOR IMMEDIATE RELEASE March 26, 1992 The President today recognized Keith Sackett of Towanda, Pennsylvania, as the 729th Daily Point of Light for the Nation. Mr. Sackett, 46, offers support, direction, and a sense of well- being to his fellow veterans. Since 1979, Mr. Sackett, who served in Vietnam, has led discussion sessions for veterans, offered them information and advice about employment, and provided assistance to their families. He helps many veterans secure jobs as machinists, mechanics, and welders, and encourages those who are substance abusers to enter detoxification programs which are sponsored by the area Veterans Administration Medical Center or other local organizations. Over the years, he has seen thirty-eight veterans successfully complete these programs, supporting them through visits and regular phone calls. Working with the Elks Club, Mr. Sackett has started a crafts program for veterans, designed to relieve stress and offer a constructive outlet. On Mondays from 10 a.m to 2 p.m., participants learn crafts and hobbies from visiting instructors. Mr. Sackett's ability to motivate veterans comes from his own personal knowledge and experiences. Mr. Sackett, who has been disabled since 1980, continues to volunteer nearly 40 hours per week. Mr. Sackett also works with young people. He delivers anti-drug messages to high school students, recounting his experiences in Vietnam. His speech is usually followed by group discussion and exchange, through which he has befriended and mentored a number of at-risk youth. He recruits young people to maintain the Veterans Memorial Park, instilling in them a sense of pride in their accomplishments. The President salutes Keith Sackett for exemplifying has belief that, "From now on in America, any definition of a successful life must include serving others." ### FOR FURTHER INFORMATION CONTACT: Tracey Taylor or Miah Homstad (202) 456-6266 THE WHITE HOUSE Office of the Press Secretary FOR IMMEDIATE RELEASE March 27, 1992 The President today recognized the volunteers of the Science & Math Achiever Teams (SMArTeams) of New Haven, Connecticut, as the 730th Daily Point of Light for the Nation. Through this program, student volunteers from Yale University foster lifelong learning and an enduring interest in science and math among New Haven middle school students. In the fall of 1990, Mr. John Lockwood of Rockford, Illinois, helped his daughter, Rowan, and another Yale student, Marian Harris, establish SMArTteams. The organization recruits Yale students to serve as mentors and "big siblings" to students from the Troup Middle School. Twenty-five college mentors currently help thirty middle school students design and execute science and math research projects. At the beginning of each semester, a mentor works with each young person to determine his or her particular interests. Together, they then design and work on a project in biology, chemistry, physics, or archaeology. The volunteers meet with the school children once a week to assist and encourage them in completing projects, which have included the reconstruction of an animal skeleton, a chemical experiment, and archeological research. The one-to-one relationships created through SMArTeams have stimulated the academic performance and ambition of the participating children. Each semester the volunteers sponsor field trips that complement the youngsters' projects. Last semester, they visited San Raphael Hospital and learned something about the rigors and rewards of being a doctor. Parents are invited to attend open houses and science fairs and are regularly informed of their children's progress. Due to the popularity of the SMArTeams at Troup Middle School, other New Haven high schools have expressed interest in the program, as have several universities. The President salutes the volunteers of SMArTeams for exemplifying his belief that, "From now on in America, any definition of a successful life must include serving others." ### FOR FURTHER INFORMATION CONTACT: Tracey Taylor or Miah Homstad (202) 456-6266 THE WHITE HOUSE Office of the Press Secretary EMBARGOED FOR RELEASE March 27, 1992 UNTIL MARCH 28, 1992 The President today recognized Tom Cooper of Albuquerque, New Mexico, as the 731st Daily Point of Light for the Nation. Mr. Cooper has made a difference in the lives of many young people, instilling in them values and hope for the future. Mr. Cooper, 57, has been an employee of the Albuquerque School District for 23 years and currently works as a liaison between the school district and the court system. His extensive experience with youth earned his appointment as Ombudsman of the Bernalillo County Juvenile Detention Center, where he has helped improve morale and communication between residents and staff. The volunteer position of Ombudsman requires Mr. Cooper to act as an advocate for the youth. Since his arrival, the center has noted a 67% decrease in violent incidents among the residents. He visits the center in the early mornings before work, after work, and on weekends. During his rounds, he reviews the latest admissions and incident reports and meets with juveniles who have been having problems or have an upcoming court date. Because of his long-standing relationship with the court system, Mr. Cooper has helped obtain placements and sentences for the youth which are tailored to their individual circumstances. Despite receiving no monetary compensation for his efforts, he- is always on call and often goes to the center in the middle of the night to address the needs of residents. He has voluntarily visited the center on more than 800 consecutive days, including weekends and holidays. Mr. Cooper is an inspiration to these troubled young people and has helped many turn their lives around and avoid future brushes with the law. The President salutes Tom Cooper for exemplifying his belief that, "From now on in America, any definition of a successful life must include serving others." ### FOR FURTHER INFORMATION CONTACT: Tracey Taylor or Miah Homstad (202) 456-6266 THE WHITE HOUSE WASHINGTON 3/23 Same G I advised Survices has a vistable not to cleek the UP Wt the attachd, list of rush staffings is poit Ewos advised on Enday the Mclanation Krisol that it nos a mestal and He was quea a copy the speech in a to its the I'm Surprised mouner nevtor it. Rouby, and 3/20/92 STAFFINGS FOR 4:00PM ADDRESS ITEM TO ss CMT DUE CMTS TO Legislative 3/19 5:55pm 3/20 10:00am Porter Initiatives Fact Sheet Executive 3/20 8:46am 3/20 noon Porter Initiatives Fact Sheet Rescissions 3/20 8:20am 3/20 noon PBrady Fact Sheet Beck Rescission 3/20 10:22am 3/20 noon Counsel Fact Sheet Speech 3/20 10:21am 3/20 noon Fitzwater Highlights Veto Message 3/20 8:59am 3/20 noon PBrady Executive Order 3/19 4:57pm 3/20 10:00am PBrady re Cong. Contacts Prest'l Remarks 3/19 8:00pm 3/20 10:00am Grady re Veto Rescissions 3/20 8:20am 3/20 noon PBrady (Counsel) H.J. Res. 446 3/19 10:33pm 3/20 10:00am PBrady Waiving Certain Enrollment Requirements Document No. 316 496 SENSITIVE WHITE HOUSE STAFFING MEMORAN CLOSE UM HOLD DATE: 03/19/92 ACTION/CONCURRENCE/COMMENT DUE BY: 10:00 a.m. Friday 03/20 SUBJECT: PRESIDENTIAL REMARKS: ANNOUNCING VETO MESSAGE OF TAX BILL, 03/20 Phil why Checked not N. 3/20 ACTION FYI ACTION FYI VICE PRESIDENT HORNER SKINNER MCBRIDE & SCOWCROFT MOORE DARMAN PETERSMEYER BRADY PORTER BROMLEY ROGICH CALIO ROLLINS DEMAREST SMITH YEUTTER FITZWATER GRAY GRADY HOLIDAY BOSKIN FINDLAY REMARKS: Please provide any comments directly to Bob Grady, Rm. 260, x4844 no later than 10:00 a Friday, 03/20, with a copy to this office. Thanks. RESPONSE: To Phil Brody CLOSE HOLD SENSITIVE DX PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 J THE WHITE HOUSE WASHINGTON March 20, 1992 MEMORANDUM FOR MARLIN FITZWATER THRU: PHIL BRADY SHIRLEY GREEN inn 1mg FROM: SUBJECT: NOWRUZ, 1992, THE IRANIAN NEW YEAR Attached are copies of the President's message for Nowruz, 1992, which you may want to release to the media. Thank you. CC: Ron Geisler Michael Sullivan 2120 NATIONAL SECURITY COUNCIL WASHINGTON. D.C. 20506 March 20, 1992 32 MAR 20 P12: 58 MEMORANDUM FOR PHILLIP BRADY FROM: WILLIAM F. SITTMANN W SUBJECT: Proposed Press Release The attached Press Release on Creation of U.S. -Russian POW/MIA Commission has been approved for immediate release by Admiral Howe. Attachment Tab A Proposed Press Release CC: Marlin Fitzwater Roman Popadiuk OK for release. Thanks J. 3/20 THE WHITE HOUSE Office of the Press Secretary For Immediate Release White House Press Announcement on Creation of U.S.-Russian POW/MIA Commission The United States and Russia have established a joint commission to investigate unresolved cases of Prisoners of War and Missing in Action dating from the Second World War, including the Korean and Vietnam conflicts. The creation of this commission underscores the commitment of both the United States and Russia to work together in a spirit of friendship to uncover the fate of missing servicemen on both sides. This effort symbolizes the determination of the Administration to resolve outstanding issues from the Cold War period and is another step in developing our new cooperative relationship with Russia. Former Ambassador to the Soviet Union, Malcolm Toon, has been designated the President's representative and Chairman of the U.S. delegation to this commission. The commission also will include Senators John Kerry and Robert Smith and Congressmen Pete Peterson and John Miller. The Russian delegation will be chaired by General Dmitri Volkogonov, a senior advisor to President Yeltsin. The first meeting of the joint commission will be held March 26-28 in Moscow. # # # THE WHITE HOUSE WASHINGTON DATE: 03/21/92 TO: GENERAL SCOWCROFT FROM: PHILLIP D. BRADY Assistant to the President and Staff Secretary The attached has been forwarded to the President (The attached was not included in the Senior Staff's copy of the Cabinet Report.) THE WHITE HOUSE WASHINGTON DATE: 03/21/92 TO: SAMUEL K. SKINNER FROM: PHILLIP D. BRADY Assistant to the President and Staff Secretary The attached has been forwarded to the President (The attached was not included in the Senior Staff's copy of the Cabinet Report.) Dear mr. hesident: Thank you so much for your very gracious letter inviting me and Rod to spend a day or two at Camp David. Whither or not we are able to arrange our time to accept your splendid invitation, I wanted you to know how very much me appreciate your thoright fress. Smirily, Carla 3-15-92 I #315827 Elliday THE OFFICE OF THE SECRETARY WASHINGTON March 17, 1992 The President The White House Washington, D. C. 20500 Dear Mr. President: This afternoon, I had a press conference to discuss my status as one of the 355 House members who had problems with the Sergeant at Arms Bank. I discussed this with Boyden Gray before proceeding and have attached a copy of the statement that I made. I sincerely apologize for any embarrass- ment that this may bring to you. Respectfully, GE Edward Madigan Statement News Division, Office of Public Affairs, Room 404-A, U.S. Department of Agriculture, Washington, D.C. 20250 STATEMENT OF EDWARD MADIGAN, SECRETARY OF AGRICULTURE March 17, 1992 None of my bank statements show an overdraft or a negative balance. Because the statements are no longer considered to be reliable, I have reconstructed my account using the deposit slips and the cancelled checks. During the 31-month period, 49 checks were held for payment for an average of 2 business days. During the 31-month period, I made 114 deposits to the House Bank. Here is a breakdown: --Only 39 were recorded on the day they were made. --51 were recorded on the next business day. --15 were recorded after 2 business days. --6 were recorded after 3 business days. --1 was recorded after 7 business days. --1 was recorded after 8 business days. --1 was recorded after 10 business days. The largest check was for $8,618.84 and was written after banking hours on January 23, 1989, for a real estate settlement in the Washington area. I transferred $9,000 from savings to my checking account on January 24, the same day the check was presented for payment. The check was held until January 25, when the deposit was recorded. I had more than enough money in checking and savings accounts in four institutions that could have been deposited in the Sergeant-at-Arms account if I had known that checks were being held. My account was closed in April, 1991, with a balance of $1,970.28. More attention should have been paid to the workings of this account. Clearly, this is an embarrassment to me, my family and friends. 0265-92 Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 08. Memo Edward J. Derwinski to the President 3/18/92 P/S Re: Greek-American Views (1 pp.) Open on Expiration of PRA (Document Follows) By (NLGB) on 6/7/05 Collection: Bush Presidential Records Office of the Chief of Staff Phillip D. Brady Files Record Group: Bush Presidential Records Office: Chief of Staff to the President, Office of the Series: Brady, Philip D. Subseries: WHORM Cat.: File Location: Chron File 3/92 [1] Date Closed: 2/21/2001 OA/ID Number: 05483-006 FOIA/SYS Case #: 1999-0735-F Appeal Case #: Re-review Case #: 2005-0331-S Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. TETERANS THE SECRETARY OF VETERANS AFFAIRS AMERICA WASHINGTON R March 18, 1992 MEMORANDUM TO: The President Ed FROM: Edward J. Derwinsk SUBJECT: Greek-American Views I learned the following in recent discussions with leaders of the Greek-American community which may be of interest to you: 1. Cyprus -- There is continued concern regarding Cyprus, especially whether Turkish President Demirel's meeting with you will lead to positive Turkish cooperation with the UN initiative on Cyprus. 2. President Vassiliou -- Cypriot President Vasilleou, who faces a tough election soon, will be in the US from March 26 to April 1. I strongly recommend that you receive him, at least for a brief courtesy call, to show our support for his efforts. Among his opponents is former President Kyprianou, whose election many believe would further degrade the possibility of an agreement on Cyprus. 3. Macedonia -- The Greek-American community is being stirred up to oppose any recognition of independence by the Yugoslav Republic of Macedonia unless the Slavs change their name to something less Hellenic than "Macedonia". Greek Foreign Minister Samaras has been particularly aggressive in alerting the Greek-American community to the "threat" of a "Greater Macedonia", that is, an independent Slavic Macedonian Republic having territorial ambitions in Northern Greece. 4. Paul Tsongas -- Greek-Americans are far less enthusiastic over Paul Tsongas than they were four years ago over the possibility of a Dukakis presidency. Conventional wisdom in the community is that Tsongas will continue to fail. Consequently, pro-Bush forces among Greek-Americans are extremely energetic and positive. 5. Andrew Athens -- Andy Athens, a leading layman in the Greek Orthodox Church, will be the chairman for the Greek-American Bush-Quayle Campaign. Your March 25 meeting with members of the community, to be led by Archbishop Iakovos, might be a good time for you to acknowledge Athens in his campaign role. ORPARTMENT US o, MOUSING * * DEVELOPMENT U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT THE SECRETARY WASHINGTON, D.C. 20410-0001 March 19, 1992 President George Bush The White House Washington, DC 20500 Dear Mr. President: I'm pleased to send you copies of two speeches delivered this past week at Harvard University. The first speech by Ted Forstmann of Forstmann Little, a world class entrepreneur, outlines the compelling need to create incentives for entrepreneurs, risk-takers, and innovators. The second speech represents my efforts to apply your message of economic growth, job creation, and property ownership to the great challenge of fighting poverty and despair in America's inner cities. As you know, I profoundly share your belief that these issues are vitally important to our Administration, our Party, and our Nation. I hope you can find the opportunity to read both as all of us in your Administration seek better ways to explain our case for entrepreneurial capitalism, growth, and expanding equity in the American Dream. Respectfully, Jack Kemp P.S. While our Cabent meeting, this D.M., was helfsfel t hopeful, we are missing the opportunity of a lifetime, if are lit mere static budget projections force us into a compromise on our issues of mecro- Srowth & injecting smith & jibs into our inner citris Blache can of will bote for beoye Bush if we give equal them opportune hope & REMARKS BY SECRETARY JACK KEMP ANDURBAN DEPARTMENT AND U.S. URBAN DEVELOPMENT OF HOUSING OF at the HARVARD UNIVERSITY JOHN F. KENNEDY SCHOOL OF GOVERNMENT CAMBRIDGE, MASSACHUSETTS MARCH 18, 1992 Thank you very much, Al Carnesale, for that very kind introduction and thanks for that warm welcome to Harvard's John F. Kennedy School of Government. It's an honor to return once again to this world-famous forum. And it's a pleasure to return to a state whose Governor says he's a "supply-sider." Bill Weld is turning conventional wisdom on its head. He's responding to Massachusetts' fiscal crisis not by raising taxes but by cutting them; not by redistributing wealth, but by encouraging the creation of new wealth. He wants to turn this entire state into a "free enterprise zone" by phasing out the capital gains tax and helping Iow-income men and women recapture the American Dream of jobs, homes, equal opportunity, entrepreneurship, and ownership. And thanks to Joe Malone and his new program for homeownership, Massachusetts is on the move. In other states, governors are dealing with fiscal crises of their own creation with policies that punish poor people. In New Jersey, the Governor is proposing to deny very low-income welfare mothers additional benefits to support newborn children. What a different vision of how to help low-income Americans. Instead of jobs, education, opportunity, and incentives, some on the Left and on the Far Right are advocating -- albeit unwittingly -- 18th Century Social Darwinism "survival of the fittest." When I last spoke here, I explained the Bush Administration's ideas for fighting poverty. Since then, we've extracted from Congress some modest funding to begin a radical redirection of American welfare policy. In the meantime, all across America, a new debate has emerged over welfare policy -- but the debate is not between Republicans and Democrats, or between the President and Congress. 1 It wasn't just conservatives who rescued funding for President Bush's HOPE initiative to help low-income people become homeowners -- it never could have happened without Representative Mike Espy, a black, liberal Democratic Congressman from the Mississippi Delta. He said he learned from his mother that whoever controls your home controls your very life. The Bush Administration's favored Enterprise Zone bill in the House wasn't authored by a conservative Republican, but by liberal Congressman Charlie Rangel of Harlem, New York. Today, the fault line and fundamental choice is not between Republican and Democratic proposals but between the old bureaucratic, statist, and elitist welfare model of spending and consumption and the new entrepreneurial and incentive-based model of economic empowerment and access to private property ownership. It's not Left or Right, it's forward or backward. I want to help define that choice here tonight. For years, liberals complained that we spent too much on guns and not enough on butter. Soon we'll be spending about the same relative amount on each. But many Americans are beginning to notice a strange paradox. On the one hand, President Bush has told the American people that by 1996 -- with about three and a half percent of GNP - the Pentagon will be able to adequately defend America's far-flung interests from the Persian Gulf to the Gulf of Mexico. Thanks to President Bush, Dick Cheney, and Colin Powell, we'll be able to keep Gaddafi in his cage, keep Saddam away from the oil fields and Israel, keep Kim Il Sung above 2 the 38th parallel, and then some. On the other hand, today - with about the same share of our national wealth -- we can't keep joblessness and despair, or even gunfire, off our streets. We can make the Third World safe for democracy, but we can't keep Third World conditions from showing up in East Harlem or East L.A. The reason? Well, spending more money is not the solution. Indeed, the way we spend money is the core of the problem. Since 1965, we've spent more than $2.5 trillion -- an amount almost equal to our entire national debt - fighting poverty. Yet there are more people living in poverty now than before, a poverty that is more intractable and durable. One thing is clear: We haven't failed for lack of trying. We tried UDAG, CETA, and Model Cities Urban Renewal, Community Action Agencies, and other Great Society programs. Yet even as new programs were enacted in the late 1960s and early 1970s, the long decline in poverty rates since World War II ended, and was replaced by a more resistent strain of poverty and despair. Instead of a middle class renaissance, we discovered an underclass stuck in poverty. Instead of a welfare system providing temporary assistance, we found perpetual dependence. The poverty rate began to exhibit a chilling independence from the ebb and flow of the American economy. The economy boomed, and poverty stayed the same. The economy stagnated, and poverty stayed the same. The tragic fact is this: Today, America has two economies. One is the mainstream economy, which is entrepreneurial-based and democratic capitalist, driven 3 by incentives for productive work, saving, investment, risk-taking, education, and ownership. A child born into this economy knows that if he or she goes to school, does homework, and follows the rules, he or she can go to college, get a job, start a family, or pursue the vast, boundless universe of American opportunity and upward mobility. Then there is the second economy which all too often exists in American inner cities. It resembles the "socialist" economies of the Third World and Eastern Europe more than the capitalist economies of the West. In East Harlem, New York, one of America's most notorious ghettos, more than 60 percent of the land is owned by the government. Nearly two-thirds of the community lives in public housing, and, as a consequence, almost a third of the people are dependent upon government support. In the second economy, all the usual incentives are reversed. For welfare mothers and unemployed fathers, work doesn't pay and saving is prohibited. In many states, an AFDC recipient who manages to save for a child's college education or a new home risks ending up in jail. In this upside-down world of perverse incentives, welfare recipients aren't allowed to save more than $1,000, on penalty of criminal prosecution. Last time I was here I think I told the story of Grace Capetillo. She's the young chicano welfare mother in Milwaukee who managed to scrounge together a $3,000 nest egg for her daughter's college education, before welfare bureaucrats took her to court. A judge initially fined her $15,000, but relented and settled for the whole $3,000. Grace Capetillo got the message: Don't save a penny, spend every cent you get. When President Bush and our Administration first tried to expand homeownership opportunities for the poor, letting residents of public housing own their 4 own homes, the old-line welfare establishment couldn't believe it. Our critics said the poor didn't want to own private property. One member of Congress even protested that if we let public housing residents own their own homes they might turn around and sell them for a profit or worse yet, they might someday leave their homes to their children! Can you imagine how dangerous it would be if poor people actually made a profit selling their homes? Imagine wanting to leave a home to your children. In the first economy, sure. But in the second economy, never! The first war on poverty failed because its architects forgot the power of incentives, rewards, and values. They forgot the nature and causes of the wealth of nations -- taught to us by Adam Smith -- and the wealth of families. People don't spend their way out of poverty. They escape poverty by working, saving, acquiring property, owning a home, starting a business. That's the classic formula for achieving the American Dream, or, as President Bush called it at the U.N. -- Pax Universalis. It is also the common-sense principle behind Abraham Lincoln's Homestead Act of 1862, the most successful anti-poverty measure in American history. Lincoln gave government land to any family which pledged to settle the land and make a home. A year later, tens of thousands of homesteaders had claimed a million-and-a-half acres of land. They came from as far away as Europe to stake their claim. People everywhere want the chance to own something, contribute their labor to it, and make it a foundation on which to build a better life. Policies which defy this timeless wisdom are bound to fail. It's time we Americans returned to our first principles. It's time we remembered 5 the secrets of our own success. Some people on the Left and on the Far Right think the poor won't respond to incentives and rewards. Nonsense! They say that the poor don't share our values, that they are mired in a "culture of poverty." I say: It's the welfare bureaucracy whose culture needs to change. To use its own jargon, I say: The real thing that's "dysfunctional" is a welfare policy which sets its sights too low, demeans the poor, and robs America of a vast potential resource. When the Iron Curtain came down in Eastern Europe, the skeptics said people raised with a "cradle-to-grave" socialist mentality would never embrace free enterprise, private property, and equality of opportunity. But the opposite has happened. From Berlin to Belarus, they are seizing the chance to own property, start new businesses, and risk capital in pursuit of capital gains. The leader of Czechoslovakia's privatization program -- Dusan Triska -- said recently: "Two months ago, people didn't know or care what it meant to be a shareholder. Now all everyone talks about is investment, shares, and capital gains." George Mitchell and the liberal Democratic leadership of Congress don't know what to make of that. After all, everyone knows the people of Czechoslovakia aren't rich. They don't own blue chip stocks and bonds. They don't have brokers in Zurich or bankers on Wall Street. Until recently, they couldn't even own private property. Yet today they're discovering the power of investment, entrepreneurship, wealth creation, and capital gains -- the foundations of entrepreneurial capitalism. There's no place in the old liberal worldview for poor people talking about capital 6 gains. I still can't get over how confused the editors of the liberal St. Louis Post- Dispatch were when President Bush visited a public housing community in St. Louis last year. When the President called for a capital gains tax cut in his speech, the residents cheered. In their editorial the next day, the editors just couldn't fathom it. But the real surprise would have come if those low-income residents hadn't cheered for removing the barriers to their opportunity to get a piece of the American Dream. You see, the President wants to cut the capital gains tax to about 15% and eliminate it in the inner city not to help the rich, but to help the poor get rich; not to help the wealthy, but to create new wealth and new capital formation. I've met with thousands of low-income people and public housing residents all across America. And let me tell you, I have never met a single one who said, "Mr. Kemp, I don't believe in the American Dream. Or, I just want to be a ward of the State, and I want the same thing for my children and my children's children." It sounds silly, I know. And yet the liberal welfare establishment treats the poor as though that is exactly how poor people think. It is this elitist attitude towards the poor that is hurting the poor and impoverishing America's inner cities. Low-income Americans are not afraid to throw in their lot with the rest of us and try their hand at competing in the mainstream economy. To a remarkable extent, they still believe that this is a land of opportunity. They have not lost faith in the American Dream, they are being denied access to the American Dream. And the truth is, America is still the closest thing to a classless society the world has ever known. A few weeks back the New York Times ran a story about how the "top 7 1%" of Americans got most of the new wealth between 1977 and 1989. What the New York Times neglects to tell us is that the composition of that top 1% bracket is constantly changing. According to IRS data, between 1985 and 1986, 40% of those in the top 1% fell into a lower income bracket. Over the same period, Census Bureau data show that fully one-third of all Americans moved from one income quintile to another. And income mobility was generally higher during the 1980s than the 1970s, reflecting the new dynamism of the American economy after we cut capital gains taxes in 1978 and 1981. When capital gains taxes are high, wealth becomes locked up as people refrain from investing or risking their wealth. America's class structure becomes more fixed. But when capital gains taxes are low, as they were during the Reagan-Bush recovery, assets are unlocked, income mobility increases, and wealth expands. But the poorest Americans are still locked out of wealth and opportunity by government-imposed barriers to opportunity. The time has come to lift those barriers. The time has come to empower people, not bureaucracies; to combat poverty, not perpetuate it; and to build a ladder of opportunity, not fill up the safety net. We must discard the old top-down model of government paternalism and rechannel the power of government toward clearing away the mistakes of a welfare policy that perpetuates poverty and dependency. Some people -- some partisans -- claim the Bush Administration is using welfare reform as a cover for beating up on the poor, or worse, as Governor Cuomo charged, as an excuse for pandering to racists. But we're not attacking the poor, we're attacking the 8 system which has so misserved them. And incidentally, I don't think class warfare makes good politics, whether it scapegoats the rich or the poor. The American people don't want blame, they want answers. In his fiscal 1993 budget, President Bush is seeking $1 billion to help public housing residents become homeowners, through his radical HOPE initiative -- Homeownership and Opportunity for People Everywhere. Once again, the President is also asking Congress to authorize 50 Federal Enterprise Zones, in which the capital gains tax would be eliminated to help give low-income entrepreneurs access to capital. The President's budget would further permit AFDC recipients to save up to $10,000, and it would strengthen incentives for long-term AFDC recipients to find employment. Existing rules generally reduce benefits for recipients who join the work force. The Administration proposal would set aside in an escrow account the amount by which a family's benefits are reduced, then pay it out in a lump sum if the family succeeds in working its way off welfare. Whenever possible, we in the Bush Administration are striving to place real economic power in the hands of individuals, not bureaucracies. Philosophically speaking, for a society which believes -- as Thomas Jefferson did -- that all men and women are created equal, there is no other way. Pragmatically speaking, we've already tried the alternative, and it doesn't work. In his first inaugural address, Jefferson condemned those nations which "feel power and forget right." Half a century later, Abraham Lincoln expressed a more modern concern. In a speech at Peoria, Illinois, he called slavery "a sad evidence that, 9 feeling prosperity we forget right." We are by far the wealthiest nation the world has ever known. But feeling prosperity, we must not forget right. We must not forget the moral obligation -- of which Lincoln often reminded us - to welcome all Americans of every background and color into what he called "the race of life." It is not just a moral issue. Our inner cities are overflowing with human capital, an untapped reservoir of human creativity. Bringing millions of low-income Americans back into the mainstream economy will create new wealth for all Americans -- rich and poor, black and white. With the right policies and the right incentives, the 34 million Americans living in poverty will become not a hindrance -- not a drain -- but a source of vast promise and unimagined potential. America can once again be the "city on a hill" -- an example to the "new world" waiting to be created, shaped, and inspired. Thank you very much, and God Bless America and the cause of freedom. ## 10 POLYCONOMICS | HUD : SECRETARY 002/006 03/17/92 12:24 201539 4025 THEODORE J. FORSTMANN Senior Partner Forstmann Little & Co. THE AMERICAN POTENTIAL Restructuring and Renewal of the U.S. Economy for the HARVARD BUSINESS SCHOOL Monday, March 16, 1992 03/17/92 12:25 201539 4025 POLYCONOMICS HUD : SECRETARY 003/006 I hope you don't expect to hear anything terribly conventional, because that's really not my style. In fact, the semi-serious joke around Forstmann Little has always been that the main reason I needed to start my own firm was because I was so thoroughly unemployable. Actually, I believe that conventional wisdom is almost always wrong. Sometimes it's the best we have for many ordinary purposes, but it can be kind of dangerous because often it's engaged in fighting the last war. Therefore, those people who would be our leaders cannot confine themselves to conventional thought. If they don't think and act on the margin, where all change takes place, they don't add to the life of the nation. They should be seeing every day as a new frontier, where life is a risky business, but the key is to know when risk is only perceptual and when it is real. For a minute or two, permit me to elaborate on the experiences of my firm, Forstmann Little & Co., from 1978 until the present, as an example of the difference between real and perceptual risk; and to put into context the body of this speech -- which will deal with the great possibilities which I believe are on the horizon, on the frontier. In our first years, the late 1970s and early 1980s, the climate for business was chaotic. Inflation and interest rates were in double digits for the first time in the nation's history, the dollar was gyrating wildly, the price of gold was inching toward $1,000 an POLYCONOMICS | 03/17/92 12:25 201539 4025 HUD:SECRETARY 004/006 ounce, and many intelligent people worried that the financial system was headed for a complete breakdown. The wild shifts in monetary policy of the late 1970s and early 1980s, the legacy of the breakdown of the Bretton Woods system, presented such risks to business that the value of traded equity in the American markets had fallen to very low levels. While inflationary growth was possible, real growth was almost nonexistent. There was a very high level of management entrenchment and shareholder disenfranchisement. Change had occurred so rapidly that conventional wisdom was obsolete and useless, baffled by events and accepting the status quo. Acquisitions were few and far between. A leveraged balance sheet using a capital structure adapted to these changes was unheard of. Productivity stalled, as there was almost no capital available to propel change. On the frontier at this point, a few financial innovators like Forstmann Little appeared, realizing that because of the years of inflation, many companies could be bought for a fraction of the replacement cost of their assets. During the first half of the 1980s, well-designed leveraged acquisitions increased efficiency and productivity and helped companies grow, as management became significant owners of their own enterprises. The tax system favored debt over equity, making it possible to purchase undervalued assets with relatively inexpensive credit. As the monetary and tax environment improved through the mid-1980s, the value of our equity rose and we were able to achieve rates of POLYCONOMICS | HUD: SECRETARY 1 005/006 03/17/92 12:26 '201539 4025 return hitherto thought impossible. It turned out that investing in a Forstmann Little leveraged buyout was far less risky and far more rewarding than buying shares of General Motors, Citibank or IBM. By the second half of the 1980s, however, the imitators had arrived. Conventional wisdom had made a 180-degree turn, decreeing that credit would expand exponentially without limit and debt had gone from essentially evil to virtually utopian. At this point, scholarly studies appeared, claiming that managements would perform better under a heavy debt load than otherwise. This was a far cry from our original insight, the idea that managements would perform much more effectively as paid up owners of their businesses irrespective of debt levels, and that effort was elastic with respect to reward. Our continued success in the second half of the decade lay again in rejecting conventional wisdom. As I warned in the late 1980s of the building excesses and their inevitable results, while almost everyone else was buying, we were selling, for incredibly high prices, much of what we had bought earlier. We did not make significant acquisitions until 1990 and 1991, when we bought Gulfstream Aerospace and General Instruments Corp., respectively; a time in which all the imitators had been forced from the scene as their sources for junk financing disappeared. 03/17/92 12:26 201539 4025 POLYCONOMICS HUD: SECRETARY 006/006 Currently, conventional thinkers are pretty depressed. We hear a great deal from those who are seeking to lead us about soaring deficits, temporary middle class tax breaks, the inevitability of Japanese and German economic might and the worry that we may become a second class economic entity. It seems that each of our aspiring leaders has a different colored bandaid to apply to our country's broken leg. Today I would like to turn your attention away from this conventional banality and direct it to the possibilities I see before us and the steps that need to be taken to implement our country's ability to take advantage of these opportunities. We will soon conclude one of the most turbulent centuries in human experience. Essentially, the 20th century can be seen as the age of failed experiments in socialism -- including its fascist, communist and welfare-statist variants -- in contrast to the 19th century, the age of no-holds-barred entrepreneurial capitalism. As a result of the fall of Soviet communism, the political revolution throughout Eastern Europe and the economic transformation of China, we Americans must rid ourselves of obsolete policies that have built up like so many barnacles during our contest with the socialist experiment, what we have most recently called the Cold War. As the grip of socialism loosens across the planet, we are seeing some of the world's most backward regions turn into the most dynamic. Mexico, which most considered a 03/17/92 12:31 201539 4025 POLYCONOMICS --- HUD: SECRETARY 0 001/012 hopeless cause until very recently, has become the fastest-growing economy in this hemisphere. The southern coast of China has become a gigantic enterprise zone, growing so fast that private industry will produce half of China's national product this year. India, with its population of a billion, is opening its economy to the world. No one can predict where Russia's path will lead, but it is wise to remember that Russia was the fastest- growing economy in the world during the two decades before World War I. In fact, the fall of socialism will set loose entrepreneurial energies that will produce bursts of productivity in places not now predictable. The past few years have produced a change in the way of life for the better for millions of people which they will not easily abandon. The concern we hear expressed about competition from Europe or Japan is really about ten years behind the curve. These are mature economies, known quantities, with problems of their own. It is the chance to take advantage of entrepreneurial capitalism and liberal democracy as they spread around the globe that will present the important opportunities and those who grasp them will produce results that will amaze conventional thinkers. With this truly splendid view spread before us, why do things feel SO bad here in the United States? Never before in our history, perhaps, have we felt a greater disparity between our unchallenged domination of the world political stage and our uneasiness about 6 03/17/92 12:31 a 4025 POLYCONOMICS HUD : SECRETARY 002/012 our national economic life. Since 1989 we have endured a cumulative rate of growth of zero and a recession that has been the longest, if not the deepest, since World War II. Needless to say, our position in world affairs will be very dependent upon how we deal with our current domestic economic ills, and I would like to suggest that, while many of the pieces for a robust and growing economy and a just and fair society are in place, some of these pieces need to be rearranged. The fundamental context of economic life has to be restructured. In essence, we need an operation on the broken leg, not a bandaid. Political philosophers from Aristotle to de Tocqueville have doubted the staying power of democracy, arguing that it must lead to the looting of wealth by the mob. American democracy has survived longer than any form of government in the world primarily because American capitalism has historically provided more opportunities to ordinary people than any other economic system. But for most of the time since World War II ended, we have drifted further and further from our basic principles. Now America needs economic policies once again that maximize opportunities and therefore draw upon the best in each individual. By denying opportunity, the fair chance to get ahead, we deny people's talent, and by so doing we deny their human worth. Napoleon's quip that every one of his privates carried a marshal's baton in his knapsack applies to Americans like no other people on earth. 7 03/17/92 12:31 201539 4025 POLYCONOMICS ---- HUD: SECRETARY 1 003/012 Economic policy should give individuals the maximum opportunity to do something new and creative. That is the source of economic welfare. The growth of an economy depends on individual's efforts to rise above their circumstances. It absolutely does not depend upon the routine functioning of mature companies. If we value the potential of the individual, then we must make economic policy accordingly. If we frustrate this potential, we can hardly expect our social institutions to bear the pressure of this frustration. Most Americans working for wages dream of working for themselves. Those who succeed will do so by adding value to our economy to the general benefit. That is what risk-taking is all about, and as I mentioned previously, risk is in the eye of the beholder: you will learn that the world will view as risky some things which appear to be the simplest and most natural transactions in the world to the nonconventional thinker. But while the task of business is to take risks, the job of government is to be predictable. Government policy must keep the hindrances to enterprise at a minimum and, therefore, the tax penalties for the rewards of risk-taking must be as low as possible. We have lived through two decades of abrupt shifts in monetary policy, arbitrary changes in regulation, and flip-flops in tax policy and none of this has been beneficial to the economic growth or social stability of our society. 03/17/92 12:32 $201539 4025 POLYCONOMICS HUD: SECRETARY 004/012 As an example, nothing is more disturbing about the present economic environment than the decline of small businesses. You should be aware that small business are responsible for most of the new jobs created in our country - 20 million during the first half of the 1980s while the Fortune 500, in their understandable desire to be efficient, are net job losers. In each successive year since 1986, five years in a row, fewer new businesses have been incorporated in the United States. In all the economic ups and downs this country has had since World War II, nothing like this ever happened before. It is an ominous statistic with predictable results, and because of it, it is no surprise that this recession has lingered far beyond conventional predictions. All economic activity, obviously including the startup of new businesses, requires both labor and capital. The way to increase the rate of return to labor at the margin is to invest relatively more capital. When capital is relatively abundant, labor is relatively scarce and the return to labor must rise. Today, capital is very scarce. Why? The value of any capital instrument is determined by expected future earnings, discounted for risk. The biggest risk and depressant upon the rate of capital formation today is the risk of confiscation by the government. I will give you a somewhat extreme example: a couple purchased a representative stock portfolio worth $10,000 in June 1971, just before the collapse of the Bretton Woods monetary system gave a generation of 03/17/92 12:32 201539 4025 POLYCONOMICS ---- HUD SECRETARY 0 005/012 inflation. Upon retirement in 1990, the stocks sell for over $37,000. After inflation, though, the real value of the stocks remains unchanged: the capital value of the stocks buys the same amount of goods in 1990 as in 1971. The couple is liable for tax of more than $10,000 on an illusory gain due entirely to inflation. This is clearly and obviously a tax on capital, not on capital gains. No other industrial country in the world confiscates the retirement savings of ordinary people in such capricious fashion. The same calculations figure into the cost of raising capital for any venture, whether it is a taxi medallion in New York City, a significant entry point into capitalism for generations of immigrants, all the way to venture capital for high-tech investments in Silicon Valley. Indeed, there are tens of thousands of research scientists and engineers punching the clock at big corporations, putting in their eight hours, waiting for their pensions, and griping about how their superiors fail to understand the commercial potential of their inventions. Remove the tax penalty on capital formation, and, believe me, capital will search them out. Instead of putting in eight hours a day for wages, they will put in fifteen hours a day for the chance to realize their aspirations. In fact, we should have an economy where businesses no longer have to build their capital structure upon the shifting sands of inflation expectations, capital formation is not 03/17/92 12:33 201539 4025 POLYCONOMICS --- HUD:SECRETARY 0 006/012 taxed at all, and legions of tax accountants, lobbyists and lawyers can be released into the world to lead productive lives. What combination of policies would create such an economic environment and most effectively would provide for American enterprise and well-being? The answer is that the spirit of enterprise inherent in most Americans, which is the foundation on which economic growth depends, will flourish in an economic environment in which there is radical tax simplification and certain and consistent monetary policy. Our tax system, monster that it is, was born of the needs of war. Until World War I, no country in the world envisioned marginal tax rates of 50% or even 30%, let alone the application of these rates to working-class incomes. Once in place, the oppressive tax regime of wartime was never dislodged; instead, large numbers of people saw money to be made by becoming appendages of this monstrosity. Various political interests kept adding to the Code to create penalties for certain kinds of behavior and incentives for others. Various economic interests sought and won exceptions. The process created hundreds of thousands of lobbyists, lawyers, tax accountants and politicians who jumped on the bandwagon and turned this system into the largest single service industry in the United States. 11 03/17/92 12:33 201539 4025 POLYCONOMICS --- HUD: SECRETARY 0 007/012 Really, we should throw away our 4,000 page Tax Code and start anew. The top tax rate in Hong Kong, the world's fastest-growing economy during the past ten years, is 15%, and it takes less than an hour to fill out your annual tax return. A flat tax of 13% such as Jerry Brown proposes is the kind of plan America will have to adopt by the end of the 1990s if we are to keep pace with a world that has rediscovered entrepreneurial capitalism. Ten years from now, tax courses at Harvard Business School shouldn't even exist or, if they do, should be the least interesting electives in the curriculum. While drastic tax simplification should be the country's basic goal for the onset of the next century; in the meantime, we need reform that will restore incentives to risk-taking. First and foremost, as Federal Reserve Board Chairman Alan Greenspan proposes, we should simply abolish the capital gains tax, which should be seen as a tax on capital formation and liquidity. It seems to me that so much misinformation has been disseminated on this subject that even some of the political proponents of capital gains reduction do not accurately understand the rationale of their position. Conventional wisdom states that this is a tax which fundamentally applies only to the wealthy. Nothing could be further from the truth. By definition, the wealthy already have capital and are not much concerned with capital gains. It is the ordinary person who is penalized, virtually defrauded, by this tax. As my 12 03/17/92 12:33 201539 4025 POLYCONOMICS HUD: SECRETARY 1 008/012 good friend the economist, Jude Wanniski, pointed out in a brilliant article written last winter, elimination of the tax on capital formation would significantly help labor, minorities, small town America and the elderly, as well as innovators of all sorts. It will help labor. When you cut tax rates on labor, or ordinary income, more people offer their labor in the market as work becomes more attractive. When this happens, capital becomes relatively scarce. In the 1980s, tax rates on labor were cut sharply and protected against inflation by indexation. Tax rates on capital were cut briefly, but increased again in 1987, and were not protected against inflation. Labor is now plentiful and capital is scarce, the "credit crunch." If capital were taxed at a lower rate, it would become plentiful, and labor would become relatively scarce. If capital were not taxed at all, it would become abundant. It would have to hire everyone in the unemployment lines in order to realize all profit opportunities. It would even pay for capital to improve the quality of their lives and train them, in order to realize profits. This would be especially true for minorities. For example, when the Negro slaves were freed during the Civil War, they came into the market without a scrap of capital. Race prejudice has kept black Americans starved for capital ever since. They have only essentially been able to use what they 03/17/92 12:34 $201539 4025 POLYCONOMICS ---- HUD: SECRETARY 0 009/012 possessed from birth, their labor. No wonder in developing their potential as best they could without capital, they became the best athletes and entertainers in society. It would help small town America. Land, like labor, is a factor of production. Throughout America's history, with capital taxed lightly or not at all, it spread from capital centers and found its way to profit opportunities throughout the grass roots. However, as capital has become scarce through high taxation, it has become more concentrated at the metropoles, drying up opportunities in the country's small towns. Japan, which taxes capital lightly or not at all, is able to seek profit opportunities far beyond its own shores. Ending the tax on capital gains would make American capital available again and would push much of this Japanese capital in other directions, to Asia, Central and South America. It would aid the elderly. As most capital assets are owned by people over 55 years, and as the price of these has been exaggerated through the last generation of monetary inflation, seniors are now unable to enjoy the fruits of their past investments without paying exorbitant taxes not on capital gains, but on capital. In the nation as a whole, taking account of inflation, there has been no net increase in the nation's capital this past quarter century. Eliminating the tax on capital gains would permit the seniors to unlock their past investments instead of being forced to pass them, at death, to their heirs. A second way seniors would benefit would be in the future, as rapid economic growth provided the 03/17/92 12:34 201539 4025 POLYCONOMICS HUD: SECRETARY 0 010/012 resources enabling society to take care of the health and retirement needs of an aging population. It would help innovators. When capital is scarce, it is reserved for the "sure things." The current "credit crunch" simply reflects the difficulty of enterprises that are not established in acquiring capital from the system. Capitalism, like any betting establishment, must provide for large rewards for large risks. Eliminating the capital gains tax entirely will maximize the reward for risk-taking, innovation and enterprise, enabling capital to flow to longshots, because only one need win in order to make the entire portfolio of bets worthwhile. Under no circumstances, though, should we throw money down the drain of "investment incentives" which subsidize established industries. Tax policy has to distinguish between preserving the rewards to risk-taking, which creates growth, and reducing the risk of investment, which does not. In an appropriate economic environment where risk-taking is prevalent, some failure is always a distinct possibility. But this is really the essence of capitalism. The creative aspect of Joseph Schumpeter's "creative destruction" obviously can't exist without some destruction. We must focus this policy for capital formation clearly upon the parts of our economy that most need it. We need a special tax regime for the inner cities and other 03/17/92 12:34 201539 4025 POLYCONOMICS --- HUD: SECRETARY 1 011/012 parts of this country that are desperately short of capital. The health of our economy, as well as the endurance of a national political consensus on behalf of opportunity, demand this. Finally, we need to rethink the way we have conducted our monetary affairs in the past two decades. Before the end of this decade, I believe, America will have emerged from a long cycle of rising and falling inflation expectations, back to a regime of price stability. This will have profound consequences for enterprise. Profit is the other side of the coin of uncertainty, as Frank Knight argued half a century ago. By "uncertainty," I do not mean sloppy guesswork in business decisions, but rather the kind of insight that sees beyond what the market is able to discount or insure. Investment is uncertain enough without added uncertainty from government monetary policy. A consensus on behalf of certainty in monetary policy has been emerging for some years. Back in 1987, then Treasury Secretary James Baker proposed to use as a yardstick for monetary policy a basket of commodities including gold. More recently, there have been encouraging signs that the Federal Reserve has a growing interest in maintaining price stability in terms of commodities, with enormous implications for reducing the cost of capital in this country. Essentially, I can envision a different kind of country as the century draws to a close. Rather than dealing with problems such as inflation created by government interference, the 16 03/17/92 12:35 $201539 4025 POLYCONOMICS --- HUD: SECRETARY 0 012/012 best graduates of this great school should be pitting their skills against technological risk in a new wave of innovation, and against political risk in a world of unparalleled opportunities overseas. The 1990s should not be an age of diminished expectations. Never before have world events presented such an imperative for entrepreneurial capitalism. As much as the early 1980s were a period of growth and opportunity, I believe that the possibilities for the 1990s and beyond should be far greater. Our country can either restructure along the lines I have suggested and lead the way, or heed conventional thinking and risk falling by the competitive wayside. In any event, those of you who can segregate real risk from its perception and who can therefore see further into these trends than others, will do great things. I wish you all the very best of luck. 17 - Copy of ltr givento CleRK + St Press ofc THE WHITE HOUSE WASHINGTON 03/20/92 FOR: SAMUEL K. SKINNER FROM: PHILLIP BRADY Assistant to the President and Staff Secretary XX Information 4) Action Let's Discuss SENT BY:DOT S-1 ; 3-20-92 ; 5:03PM ; 2023663956- 9-45628831# 2 U.S.Department The Administrator 400 Seventh Street, S.W. of Transportation Washington, D.C. 20590 National Highway Traffic Safety Administration March 20, 1992 The President The White House Washington, D.C. 20500 Dear Mr. President: It is a great honor to serve in your Administration. Your leadership as President and Commander-in-Chief has brought this great Nation together to meet its challenges and to establish its preeminence. I was pleased and honored when you nominated me to be the Administrator for the Federal Aviation Administration. I am certain that I could have served you well in that capacity. However, because of recent personal considerations, I request that you withdraw my nomination from the Senate. I intend to remain at present as your Administrator for the National Highway Traffic Safety Administration. Let me assure you that I look forward to working for you in my present capacity, and in serving you and the American people. Sincerely, serry Ralph Curry THE WHITE HOUSE 3/19 Day Bill, Rosh you for you to it does It up a bil of a Gs you may it mar not recall, In C. typical (if fonatic) Notre Jame godate of I'm purling consideration of their Convencement Nonethelass in the spint of orivers Not assed your letter will 4 sit lapel the provittial Very belt be and PGD. THE WHITE HOUSE WASHINGTON The Honorable William F. Weld Governor of Massachusetts Boston, Massachusetts 02133 PERSONAL THE WHITE HOUSE WASHINGTON 3/20/92 DATE: TO: KATHY SUPER FROM: PHILLIP D. BRADY Assistant to the President and Staff Secretary anon Bill 7 x 24 THE COMMONWEALTH OF MASSACHUSETTS EXECUTIVE DEPARTMENT STATE HOUSE BOSTON 02133 02 MAR 19 A 9 : 47 WILLIAM F. WELD GOVERNOR ARGEO PAUL CELLUCCI LIEUTENANT-GOVERNOR March 11, 1992 Mr. Phillip D. Brady Assistant to the President Staff Secretary The White House Washington, D.C. 20500 Phil, Dear Mr. Brady: I understand that President Bush has been invited to speak at the Assumption College Commencement Exercises in Worcester, Massachusetts on Saturday, May 23, 1992. If his schedule allows, I hope this invitation will be given serious consideration as I believe that the President's appearance in Worcester would be beneficial to both him and the college. Sincerely, Bm William F. Weld Governor PS Joe Hagan, the Pres. of Assumption, me is a heary-duty Republican and helped h lot BW accure ®