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[Chron File: August to December 1992] [2]
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563878175
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[Chron File: August to December 1992] [2]
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Records of the White House Office of the Chief of Staff to the President (George H. W. Bush Administration)
Robert B. Zoellick's Chronological Files
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1992
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Originally Processed With FOIA(s):
foia Number:
2025-0627-S
2025-0627-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:
Zoellick, Robert, Files
Subseries:
Chronological Files
OA/ID Number:
93002
Folder ID Number:
93002-003
Folder Title:
[Chron File: August to December 1992] [2]
Stack:
Row:
Section:
Shelf:
Position:
G
15
26
2
Mr. Jonker
NAME:
I sent him the Agenda and your note; he has it.
That is fine but -- it is not being
DATE:
10/12
distributed; the press is not using it;
no one is paying attention. Time is short;
10:40A
TIME:
the Pres is going to lose the election.
He still feels he has something he has
PHONE:
202/966-8829
come up with that will help. He wants to
meet/talk w/you.
Thank him again for his interest/concern;
note that we feel comfortable with the
program we are proceeding with, tho we
do appreciate his offer of help
Try to find someone who will talk to him
I will talk to him by phone
(I don't recommend this;
he is quite persistent & I don't think
a call from you will stop his requests) CDJ
NAME:
Edis people,
DATE:
TIME:
Askone of
6 get Denna to
soreone from UPN
PHONE:
assign
to
IAME:
ATE:
Ede - RBZ wd like one of your folks to
handle this. If that is not appropriate,
'IME:
then pass on to Dennis to see what can
be done in his office. Thanks Cozetta
HONE:
I've attached background
10/12 Mon
AME:
Jay Lefkowitz
ATE:
we jonker 10/14 AM
IME:
HONE:
cDf per jay
Jay Lefkowitz met
with Mr. Jonker.
per
CDjohnson/tay
1.
LRT
2. RBZ
RBZ, you asked that I do a brief response
to Mr. Jonker, which is attached.
Mr. Jonker has called me daily this week,
wanting to make an appointment to get to
see you -- the situation for the President
is now almost completely hopeless, and
you must meet with him to get his plan
that will save the President
I suggest you sign this letter, I will
send it to him with the Agenda, ask
that he look at it and realize we are
moving in the direction he feels we
should
Good idea
Cozetta 10/7
See edits pls
THE WHITE HOUSE
WASHINGTON
October 9, 1992
Dear Mr. Jonker:
I have received your letters and appreciate
your concern about conveying effectively the
President's intent to establish a healthier
economy. We share your belief in the
importance of this message.
A key part of this communication is the
President's Agenda for American Renewal; I have
enclosed a copy for you.
Thank you again for your letters and calls
offering your assistance.
With best regards,
Sincerely,
Robert B. B Zoellick
Robert
Deputy Chief of Staff
Mr. Frederick Jonker
3939 Legation Street, N.W.
Washington, D.C. 20015
I.C. - DYNAMICS
Inc.
OF CRUCIAL IMPORTANCE. PLEASE PASS ON TO MR. ZOELLICK AT ONCE.
September 21, 1992
The Hon. Robert Zoellick
The White House
Dear Mr. Zoellick:
You may remember my letter to Secr. Baker on a SPECIAL PRESIDENTIAL
DEMOCRATIC INITIATIVE, which was delivered to you at State, and which I hope you
passed on to Secr. Baker.
I followed up with another letter to you on a SPECIAL PRESIDENTIAL ECONOMIC
INITIATIVE, which I hope you received and read.
You have given Pres. Bush a coherent message! Unfortunately it is not
going to make the difference. The Candidates give opposite messages. The people
just take these messages as just so much empty campaign rhetoric that will not
solve anything.
Further revelations of Gov. Clinton's character defects, may not make the
difference either. These defects have already been discounted.
This is not an ordinary election. People have totally lost belief in "The
system". The President must make clear that he understands that. He must
announce a program that will go to the root causes of all of our many, many
problems.
Though it is almost too late, my work done in the past could still serve
as a basis upon which such a program can be announced. Goals can be announced
with confidence because we already have much of the answers.
THE PRESIDENT HAS NOTHING TO LOSE BY ANNOUNCING SUCH A PROGRAM AND
EVERYTHING TO GAIN. HE CAN NOT AFFORD TO LEAVE A SINGLE STONE UNTURNED.
3939 LEGATION ST., N.W., WASHINGTON, D.C. 20015 (202) 966-8829
The Hon. Robert Zoellick
September 21, 1992
Pasge -2-
If my letters or the enclosed papers are lost, call me and I will send
copies.
Better still let's get together without losing a day!
(202)966-2829!!
Sincerely yours,
First 7 A
Frederick Jonker
Enclosure: Resume of study work in national and international affairs
P.S.: I will vote for Pres. Bush, but when I listen to Pres. Bush and Gov.
Clinton on T.V., I can not help feel that no matter how wrongly - -- Clinton
is going to win! Apparently others feel the same way. Unless the
President comes up with a radically new approach for the future, he will
lose. If he does accept a program as proposed, his second Presidency may
yet become a turning point for the nation.
"Politics" as usual will no longer work; it only will backfire. People
want real answers to the future.
Froderick Jonker
3939 Legation Street, N.W.
Washington, D. C. 20015
Phone (202) 966-8829 966-8829
RESUME OF STUDY WORK IN THE FIELD OF NAT. AND INTERNAT. AFFAIRS, PERFORMED DURING
THE LAST 20 YEARS
OUTLINE OF THE MANUSCRIPTS CREATED DURING THIS PERIOD OF TIME
I. My quest started with an updating of the late J. Arnold Toynbee's "Laws
of the rise and decline of nations and Civilizations", to adapt them to the
complexities of the present world. My aim was to determine where we, the USA,
the Soviet Union and the Third World, are on that curve of rise and decline --
and where all will be going in the future.
According to these laws and beyond any doubt, the USA is destined to
eventually become the shaper and "core-nation" of a new World Order; at present
still unwilling, History will simply force the USA into this role.
In this light, the manuscript takes the reader through the history of the
WORLD ORDERS/
West up to the present - providing essentially an "interpretation". In this
interpretation it analyzes the factors in our national make up, that have set
us apart as the predestined creator of a "Neo-Western Order". It likewise
examines those essential attributes which are still missing. It details the
challenges which as a result still lie ahead of us and outlines the shape of
that new order, which "Historic necessity" will one day force us to create.
The title of this manuscript is THE QUEST FOR A NEW MILLENNIAL GLOBAL ORDER ;the
subtitle is "Rise. America, rise
to what History intended us to be".
II. Meanwhile, various Third World leaders with whom I discussed my
findings, pointed out that our present form of democracy simply does not work
in the Third World. Meanwhile even here in the USA our present system is
beginning to show signs of faltering.
As a result, I undertook a study of the history of democracy in Greece
and Rome and the causes of their failings and ultimate collapse. Also I
studied the history of our own democracy and the various forms of deterioration
which crept in over time. Out of this analysis emerged a new -- and yet old --
definition of democracy, as well as an outline plan for a step-by-step imple-
HETA-DEMOCAACY
mentation of that definition of democracy into the ultimate ideal of rule of
the people, so we may avoid the fate that befell Greece and Rome.
The title of this manuscript is: "UNFULFILLED DEMOCRACY". The subtitle
is: "The quest for meta-democratic governance".
Meanwhile discussions with staff members of the Nat. Security Council,
State Dept. and various Third World leaders gave rise to the formulation
of a plan based on these manuscripts code named, "The Ideological Counter-
force to Marxism-Leninism in the Third World.
Lt. Col. Oliver North attempted to take that plan to President Reagan
to serve as the basis of his plan "to leave Marxism Leninism on the ash
heap of History". Ollie North, however, was stopped on the basis that the
White House had no time to listen to outsiders. Sen. Richard Stone -- the
President's special envoy to Central America intended to do the same
thing. He too was prevented from doing SO.
III. Meanwhile, there appeared to be a large gap in that the plans for
"The ideological Counterforce to Marxism-Leninism", namely a better system to
control the free economy than we have now.
As far as greater economic stability and greater productivity are concerned,
a study undertaken with the help of two economics professors of Georgetown
University, soon yielded remarkable results -- again much of it based on re-
invention of forgotten wisdom never understood by the politicians. The results
-- which apply to all forms of free economy -- were laid down in a manuscript
titled: "WEALTH AND NATIONAL DESTINY". The system code-named "Model Free Economy"
would combine a new method of inflation control with permanent full employment.
A new -- and yet old -- form of monetary system would permit stimulation of
ECONOMICS
continued automation, and defense against predatory assaults by foreign competition
against our industries. It would be a real super supply side system!
The manuscript needs further work and will be held in inventory until serious
economic setbacks will create a potential market.
Meanwhile, Adolfo Calero became interested in the concept of
"Ideological Counterforce to Marxism-Leninism in the Third World".
The aim was to develop a complete plan for a free and democratic
Nicaragua with a new realistic strategy for victory based on the
development of people power, instead of military force. it was also
intended to make the Contras more acceptable to the public and
Congress. Unfortunately, due to the many flip flops of the
Administration and Congress, the plan never received a chance.
As the 1988 Presidential election season started I was able to
interest Sen. Paul Laxalt in the IDEOLOGICAL COUNTERFORCE project; if
he had decided to run for the Presidency, these plans would
have become part of his political "Agenda"
I.C. - DYNAMICS
Inc.
OF CRUCIAL IMPORTANCE. PLEASE FORWARD TO MR. ZOELICK AT THE WHITE HOUSE.
August 18, 1992
Cor: Ph draft
Mr. Robert B. Zoelick
bring reph
Counselor and Undersecr. for Economic Affairs
Dept. of State
2201 C St., N.W.
WHITE HOUSE
Washington, D.C. 20520
Dear Mr. Zoelick:
First of all my very best wishes regarding your new responsibilities at the
White House.
I refer to my letter of July 30 addressed to Secr. Baker which was passed
on to you. Coretta tells me that you read it and passed it on to Secr. Baker's
office.
I hope it will not get lost there and that someone will give me a hearing.
Perhaps you could check to see what is happening to it. I would greatly
appreciate your help in this.
The newspaper mentioned that you also are Undersecretary for Economic
Affairs. As a result, I enclose a very brief Abstract of Study Manuscript III
dealing with a "Model Free Economy".
I worked on it with 2 conservative professors of economics at Georgetown
University. It was read by several other economists who all concurred. The
program was intended for use as a "Special Presidential Economic Initiative".
It would, however, still require a great deal of professional work before it
could be officially launched. It is too late now!
What could perhaps be done is for the President to announce a research
project, to come up with answers during the second term. He could even hint at
the anticipated outcome. If you would want to give it some thought I would be
delighted to get together on it with you. If not now, perhaps we could work on
this together after the election.
The proposed Special Presidential Democratic Initiative, however, could
still be a viable project for this election if acted on immediately.
3939 LEGATION ST., N.W., WASHINGTON, D.C. 20015 (202) 966-8829
Mr. Robert B. Zoelick
August 18, 1992
Page -2-
Wishing you the best of luck and thanking you for your help.
Sincerely yours,
70h
Frederick Jonker
Enclosures: -- Resume nat. and internat. study work
-- Abstract Model Free Economy
P.S.: I know what one must do to win, using conventional strategies and tactics.
But this is no ordinary election. The public wants at least a vision of
radical and far reaching changes for the future; it wants a vision!
If Secr. Baker is interested in considering "vision elements" --- just to
cover all bets --- let's get together on this.
There are various ways of doing this, we can look at together. As a
matter of fact I am now finishing a paper linking the following elements
together in such a vision of a better future. "Meta democracy" as the
foundation of a new world order; elements of the "Model Free Economy" as
a new Economic Order; as well as a vision of an (inevitable) form of new
Global Order derived from the "laws of History".
(IF YOU WOHLD LIKE / COUL LS SIND YOU
NCOPY)
F.F.
Froderick Jonker
3939 Legation Street, n.W.
Washington, D. C. 20015
Phone (202) 966-8829
RESUME OF STUDY WORK IN THE FIELD OF NAT. AND INTERNAT. AFFAIRS, PERFORMED DURING
THE LAST 20 YEARS
OUTLINE OF THE MANUSCRIPTS CREATED DURING THIS PERIOD OF TIME
I. My quest started with an updating of the late J. Arnold Toynbee's "Laws
of the rise and decline of nations and Civilizations", to adapt them to the
complexities of the present world. My aim was to determine where we, the USA,
the Soviet Union and the Third World, are on that curve of rise and decline --
and where all will be going in the future.
According to these laws and beyond any doubt, the USA is destined to
eventually become the shaper and "core-nation" of a new World Order; at present
still unwilling, History will simply force the USA into this role.
In this light, the manuscript takes the reader through the history of the
West up to the present - providing essentially an "interpretation". In this
interpretation it analyzes the factors in our national make up, that have set
us apart as the predestined creator of a "Neo-Western Order". It likewise
examines those essential attributes which are still missing. It details the
challenges which as a result still lie ahead of us and outlines the shape of
that new order, which "Historic necessity" will one day force us to create.
The title of this manuscript is THE QUEST FOR A NEW MILLENNIAL GLOBAL ORDER ;the
subtitle is "Rise. America, rise
...
to what History intended us to be".
II. Meanwhile, various Third World leaders with whom I discussed my
findings, pointed out that our present form of democracy simply does not work
in the Third World. Meanwhile even here in the USA our present system is
beginning to show signs of faltering.
As a result, I undertook a study of the history of democracy in Greece
and Rome and the causes of their failings and ultimate collapse. Also I
studied the history of our own democracy and the various forms of deterioration
which crept in over time. Out of this analysis emerged a new -- and yet old --
definition of democracy, as well as an outline plan for a step-by-step imple-
mentation of that definition of democracy into the ultimate ideal of rule of
the people, so we may avoid the fate that befell Greece and Rome.
The title of this manuscript is: "UNFULFILLED DEMOCRACY". The subtitle
is: "The quest for meta-democratic governance".
or.
Meanwhile discussions with staff members of the Nat. Security Council,
State Dept. and various Third World leaders gave rise to the formulation
of a plan based on these manuscripts code named, "The Ideological Counter-
force to Marxism-Leninism" in the Third World.
Lt. Col. Oliver North attempted to take that plan to President Reagan
to serve as the basis of his plan "to leave Marxism-Leninism on the ash
heap of History". Ollie North, however, was stopped on the basis that the
White House had no time to listen to outsiders. Sen. Richard Stone -- the
President's special envoy to Central America intended to do the same
thing. He too was prevented from doing so.
III. Meanwhile, there appeared to be a large gap in that the plans for
"The ideological Counterforce to Marxism-Leninism", namely a better system to
control the free economy than we have now.
As far as greater economic stability and greater productivity are concerned,
a study undertaken with the help of two economics professors of Georgetown
University, soon yielded remarkable results -- again much of it based on re-
invention of forgotten wisdom never understood by the politicians. The results
-- which apply to all forms of free economy -- were laid down in a manuscript
titled: "WEALTH AND NATIONAL DESTINY". The system code-named "Model Free Economy"
would combine a new method of inflation control with permanent full employment.
A new -- and yet old form of monetary system would permit stimulation of
continued automation, and defense against predatory assaults by foreign competition
against our industries. It would be a real super supply side system!
The manuscript needs further work and will be held in inventory until serious
economic setbacks will create a potential market.
Meanwhile, Adolfo Calero became interested in the concept of
"Ideological Counterforce to Marxism-Leninism in the Third World".
The aim was to develop a complete plan for a free and democratic
Nicaragua with a new realistic strategy for victory based on the
development of people power, instead of military force. It was also
intended to make the Contras more acceptable to the public and
Congress. Unfortunately, due to the many flip flops of the
Administration and Congress, the plan never received a chance.
As the 1988 Presidential election season started I was able to
interest Sen. Paul Laxalt in the IDEOLOGICAL COUNTERFORCE project; if
be had decided to run for the Presidency, these plans would
have become part of his political "Agenda"
Froderick Jonker
3939 Legation Street, n.W.
Washington, D. C. 20015
Phone (202) 966-8829
RESUME OF STUDY WORK IN THE FIELD OF NAT. AND INTERNAT. AFFAIRS, PERFORMED DURING
THE LAST 20 YEARS
OUTLINE OF THE MANUSCRIPTS CREATED DURING THIS PERIOD OF TIME
I. My quest started with an updating of the late J. Arnold Toynbee's "Laws
of the rise and decline of nations and Civilizations", to adapt them to the
complexities of the present world. My aim was to determine where we, the USA,
the Soviet Union and the Third World, are on that curve of rise and decline --
and where all will be going in the future.
According to these laws and beyond any doubt, the USA is destined to
eventually become the shaper and "core-nation" of a new World Order; at present
still unwilling, History will simply force the USA into this role.
In this light, the manuscript takes the reader through the history of the
West up to the present - -- providing essentially an "interpretation". In this
interpretation it analyzes the factors in our national make up, that have set
us apart as the predestined creator of a "Neo-Western Order". It likewise
examines those essential attributes which are still missing. It details the
challenges which as a result still lie ahead of us and outlines the shape of
that new order, which "Historic necessity" will one day force us to create.
The title of this manuscript is THE QUEST FOR A NEW MILLENNIAL GLOBAL ORDER ;the
subtitle is "Rise. America, rise
to what History intended us to be".
II. Meanwhile, various Third World leaders with whom I discussed my
findings, pointed out that our present form of democracy simply does not work
in the Third World. Meanwhile even here in the USA our present system is
beginning to show signs of faltering.
As a result, I undertook a study of the history of democracy in Greece
and Rome and the causes of their failings and ultimate collapse. Also I
studied the history of our own democracy and the various forms of deterioration
which crept in over time. Out of this analysis emerged a new -- and yet old ---
definition of democracy, as well as an outline plan for a step-by-step imple-
mentation of that definition of democracy into the ultimate ideal of rule of
the people, so we may avoid the fate that befell Greece and Rome.
The title of this manuscript is: "UNFULFILLED DEMOCRACY". The subtitle
is: "The quest for meta-democratic governance".
Meanwhile discussions with staff members of the Nat. Security Council,
State Dept. and various Third World leaders gave rise to the formulation
of a plan based on these manuscripts code named, "The Ideological Counter-
force to Marxism-Leninism" in the Third World.
Lt. Col. Oliver North attempted to take that plan to President Reagan
to serve as the basis of his plan "to leave Marxism-Leninism on the ash
heap of History". Ollie North, however, was stopped on the basis that the
White House had no time to listen to outsiders. Sen. Richard Stone the
President's special envoy to Central America intended to do the same
thing. He too was prevented from doing SO.
III. Meanwhile, there appeared to be a large gap in that the plans for
"The ideological Counterforce to Marxism-Leninism", namely a better system to
control the free economy than we have now.
As far as greater economic stability and greater productivity are concerned,
a study undertaken with the help of two economics professors of Georgetown
University, soon yielded remarkable results -- again much of it based on re-
invention of forgotten wisdom never understood by the politicians. The results
-- which apply to all forms of free economy -- were laid down in a manuscript
titled: "WEALTH AND NATIONAL DESTINY". The system code-named "Model Free Economy"
would combine a new method of inflation control with permanent full employment.
A new -- and yet old form of monetary system would permit stimulation of
continued automation, and defense against predatory assaults by foreign competition
against our industries. It would be a real super supply side system!
The manuscript needs further work and will be held in inventory until serious
economic setbacks will create a potential market.
Meanwhile, Adolfo Calero became interested in the concept of
"Ideological Counterforce to Marxism-Leninism in the Third World".
The aim was to develop a complete plan for a free and democratic
Nicaragua with a new realistic strategy for victory based on the
development of people power, instead of military force. It was also
intended to make the Contras more acceptable to the public and
Congress. Unfortunately, due to the many flip flops of the
Administration and Congress, the plan never received a chance.
As the 1988 Presidential election season started I was able to
interest Sen. Paul Laxalt in the IDEOLOGICAL COUNTERFORCE project; if
he had decided to run for the Presidency, these plans would
have become part of his political "Agenda"
RBZ
What do you want
me to do with
Jason Alexander?
CDJ 10/3
10/5
just Venthil
No reply from
C
Frederick Jonker 1984
Draft #9:
CONFIDENTIAL
THREE PAGE SUMMARY OF
AND
WEALTH AND NATIONAL DESTINY"
PROPRIETARY
Determined NOT to be
National Security Classified Marking
THE NEED FOR A BI-PARTISAN PROGRAM
TO FORMULATE A NEW FORM OF MONETARY SYSTEM
By rkj (NLGB) on 5/5/25
AND NOVEL ECONOMIC CONTROLS, TO ACHIEVE
FULL AND ABUNDANT EMPLOYMENT, WITHOUT
UNDUE INFLATION
Note: This program is not intended as a form of criticism of the
present administration. It simply intends to pave the way
for the development of better ways of solving the present
problems than are available at this time.
The United States Government and the governments the world over, do at
present not possess the necessary controls to adequately regulate their economies.
A re-design of these control systems is long overdue.
The primary aim of the proposed economic controls should be to maintain a
full and abundant employment and maximum productivity without "undue" inflation.
The Economy will have to maintain this condition in the face of various shock-
effects. These will include: slowdowns caused by fears and panics; the effects
of sudden crippling foreign competition; sudden drastic regulations; raw-
materials crises, as well as the effects of sudden increases in defense spending.
Such controls will also be needed in case of mobilization, war, demobilization,
etc.
The system should be designed specifically for the crisis economy into which
the Western World has slipped during the past decade.
The proposed measure would greatly increase the GNP. Abundant employment
would eventually make possible the elimination of ethnic ghettos, and help to
bring crime and drug abuse, social unrest and welfare spending, under control.
Furthermore, it would spur far going drastic automation.
OUTLINE OF PROPOSED REFORMS:
A number of reforms are proposed, which together should form the core of the
new control system:
1. The first leg of the proposed system would be a series of measures, intended
to forestall the inflationary wage-price spiral. The ultimate of these
measures would be an "Average National Wage Act" designed to nullify the
effect of undue wage increases resulting from Union pressures and a driving
up of wages as a result of depletion of the idle labor pool. This measure
would not impose wage controls upon Unions and employers, but it would have
the practical effect of stabilizing the total (or aggregate) of wages and
salaries paid out nationwide, thus preventing inflation. Monetary controls
cannot curb the wage-price spiral except at a prohibitive cost in bankrupt-
cies and unemployment.
or,
2.
PROPRIETARY AND
CONFIDENTIAL
2. The conversion of the Federal Reserve System (F.R.S.) to a Federal Credit Sys-
tem (F.C.S.). It would leave the private banking system virtually unchanged
but all newly created "money supply" would be supplied by the FCS to the banks
at a nominal or negative interest rate. This would provide better control of
the money supply and interest rate; it would permit both to be controlled
independently of each other something which is not possible now.
This in turn would permit "targeting" of credit and interest rates to
particular industries to help the economy to absorb the shocks listed above.
For example it will make it possible to maintain low mortgage rates for real
estate and auto purchasing, while raising interest rates for other industries
which are "overheating", and vice versa.
3. The conversion from FRS to FCS will make possible the gradual replacement of
the present system of expansion of the money supply through the expansion of
Bank credit, by expansion through issuance of fiduciary money.
THIS WILL PERMIT THE PRESENT NATIONAL DEBT AND FURTHER ACCUMULATIONS TO
BE GRADUALLY "DISSOLVED" AT NO COST TO ANYONE.
4. The creation of a "Nat. Industrial Vitalization Council". Its primary task
would be the restoration of the U.S.A. into the position of the world's leading
nation in Research, Development and Productivity. This would also involve the
development of policies to nullify the effect of predatory attacks upon our
markets by low-wage areas; it would preserve essential industries to the extent
needed for national security, while at the same time preserving the free-trade
system.
The new tools provided by the Federal Credit System -- the ability to
"target" credits and interest rates independent of each other at certain
industries -- would be an indispensible tool in this Vitalization.
5. A foreign currency-exchange reform would have the effect of eliminating the
periodic overvaluation or undervaluation of the dollar. Only this form of
currency exchange stability will make international free-trade a viable pro-
position.
6. A drastic stock exchange reform which would virtually eliminate sudden specu-
lative rises or precipitous drops; it would also virtually eliminate undesirable
leveraged buyouts and take over threats. It would have an immense stabilizing
effect and may well virtually eliminate serious depressions and recessions.
7. This far more stable and depression-proof economy in turn may make possible,
a "Universal Investment-Retirement System", based on investment in stocks and
bonds in industry, real estate and "government capital projects". It is
intended to gradually phase-out the eventually doomed social security system
over a long period of time and reduce it to a safety-net only.
As a by-product, this system will provide new and abundant sources of
investment funds; it will be designed to help create new and more efficient
forms of entrepreneurship, to make America truly the land of capitalism of
the common man.
8. The proposed reforms would require the bringing together of what is now the
Treasury Department, the Fed. Credit System, The Council of Economic Advisors,
The Universal Investment Retirement system, and the National Industrial
Vitalization Council, into a single new Department, the "Department of
Economics and Finance" under a Secretary of Economics and Finance, who should
perhaps be the third highest ranking Cabinet Member after State and Defense.
3.
PROPRIETARY AND
CONFIDENTIAL
As shown in the attached diagram, all of the proposed reforms dovetail into
an integrated economic "system" - a SUPER SUPPLY SIDE SYSTEM. This H
Model
Free Economy, " will maximize industrial output, as well as human fulfillment.
PROPOSED ACTION:
It is proposed that funds be solicited to set up an economic research group
to perform the needed detail research. It will explore the results with a
younger generation of economists and politicians of both parties. The Institute
would likewise educate the Congress, the Administration and the public regarding
these matters.
The aim is to create a step-by-step program of gradual reform aimed at a
total overhaul of our economic control system, in which all of the parts fit
logically together and will eventually form an integrated whole.
If and when implementation has been decided upon, the Institute would assist
the U.S. Govt. in all of the details of a gradual step by step execution of the
plans.
If successful in the USA, the Institute would perform same services for
overseas governments. These services could be performed for US Banks having
large outstanding loans in the Third World; the services could help save these
assets.
Conversion of F.R.S.
"Average National-
into the FEDERAL
Wage" Law
MONETARY SYSTEM
(F.M.S.)
"EXCHANGE-RATE
Permanent elimination
STABILIZATION"
of inflation
Pay-off of
Nat. Debt
Stable normal
"NATIONAL INDUSTRIAL
"Funded Deficit_
interest rates
VITALIZATION COUNCIL".
Spending" to control
business cycle
General and targeted business
stimulation by FCS management
of credit and interest rates.
PERMANENT ECONOMIC
BOOM AND EXPANSION
PERMANENT FULL EMPLOYMENT
UNIVERSAL INVESTMENT-
RETIREMENT SYSTEM
PROPRIETARY AND
CONFIDENTIAL
FIG. 1
New ample investment funds
MODEL OF STABLE HIGH-OUTPUT
New entrepreneurship.
FULL-EMPLOYMENT, RAPID-GROWTH,
FOR EXPLANATION :
I FIG.
FREE ECONOMY
SEE PAGE (16.
C
Idention 7 A 90
FIG. 2
PROPRIETARY AND
CONFIDENTIAL
DEPARTMENT OF FINANCE AND ECONOMICS
SECRETARY OF
FINANCE AND ECONOMICS
LIAISON WITH
(PERMANENT) UNDERSECRETARY
NAT. FINANCE AND ECONOMICS
DEPT. OF COMMERCE
FINANCE AND ECONOMICS
ADVISORY BOARD
(expanded version of Council
of Economic Advisors)
ECONOMIC RESEARCH AND
TREASURY DIVISION
NATIONAL INDUSTRIAL
FEDERAL CREDIT SYSTEM
UNIVERSAL INVESTME
DEVELOPMENT AGENCY
(formerly Treasury
VITALIZATION COUNCIL
(formerly Federal Reserve
RETIREMENT SYSTEM
Dept.)
System)
FIG. 2
PROPOSED REORGANIZATION OF MOST IMPORTANT RELATED INSTITUTIONS OF THE
FINANCIAL-ECONOMIC SECTOR
FIG. 3
PROPRIETARY AND
CONFIDENTIAL
FEDERAL CREDIT
The Federal Credit System
supplies plentifull
credit:
AVER. NAT. WAGE
RESERVOIR OF CREDIT SUPPLY
LAW
The application of the
"Average National Wage
Law" syphons off excess
money supply; it acts as
an overflow to prevent
inflation.
FIG. 3
PRINCIPLE OF MAX. STIMULATION OF
ECONOMY, WHILE CONTROLLING INFLA-
TION ON THE BASIS OF THE OVERFLOW
PRINCIPLE
To: Zoellick White House
Date: Sat, Oct 3, 1992 11:36 AM
Page 1 of 6
From:
Fax phone:
Quality: Standard
Sorry to take more than 24 hours to respond, but as I told Ms. Cozzetta
yesterday, although I accept your challenge, it takes longer to write a short letter
(that says something) than a long one.
The short of it is this: if you can hear what I'm saying, if you can hear the
music if not the words, then the situation is not irreversible. As the first person in
The White House to listen, you have elicited the "tactic/device" that could be the
point about which this election turns. That possibility is the reason I indicated in
the September 16th FAX that the vote that counts is yours.
Your Ms. Cozzetta coaxed the c/o Sitnalta Press out of me. If you radar is
working, you will discover that it's not an iceberg out there, but a continent.
Sitnalta, is Atlantis backward, or civilization ascendant The "tactic/device," If
you make more money this year than last, the extra is yours-not subject to
taxes, is more than a passport to the Presidency, it is the door to how to deliver
afterward.
By the terms of your challenge of October 1st, a response or its absence,
will dictate the course of the next four years.
Yours truly,
JA
Jason Alexander
To: Zoellick White House
Date: Sat, Oct 3, 1992 11:36 AM
Page 5 of 6
From:
Fax phone:
Quality: Standard
Jose alexander
October 3, 1992
Mr. Robert Zoellick
Deputy Chief of Staff
The White House
West Wing, First Floor
Washington, DC 20500
Dear Mr. Zoellick:
Okay, for all the marbles then
Short Prologue:
When you're at the top of what you do, there aren't many people you can
talk to. I must ask you momentarily to suspend, not judgment, but disbelief.
What I'm about to propose will cause Beltway talking-heads to ricochet around
the room-but one wins with the congregation, not the choir.
There are two ways of viewing things: top-down; and bottom-up. Please
read this at least twice; and at least once from the view from the bottom, the
congregation.
First I will state the "tactic/device"; then sketch some arguments-some
context is required to understand anything, let alone something powerful
enough to "change" loser to winner. (George Bush has a bigger vested interest in
"change," than do the American people-their interests are not opposite.)
The urgency and immediacy of the situation does not allow me to outline
the iceberg. Hell's bells, there's not even time to describe the tip of the iceberg.
The arguments can only adumbrate a presence present. I must rely on your radar
to sense "the mountain" of support that underlies, not the tip, but the point.
The Point:
The American economy will turn around and take-off when it is cut loose
("laissez nous faire"). Everybody understands this election is about the economy;
economic talk is too general. Everybody understands the importance of jobs; job
talk is too ad hoc. The one point that strikes home to everyone, and certainly to
the majority (electoral), is: taxes. A turn around must pivot on the point of taxes.
To: Zoellick White House
Date: Sat, Oct 3, 1992 11:36 AM
Page 2 of 6
From:
Fax phone:
Quality: Standard
It benefits the needy; the biggest initial beneficiaries will be those who
were recently out of work.
It will not be inflationary. As to the poor, people can work for less, if
they keep more. As to the rich, "making" reconnects goods to
money; inflation occurs when money outruns reality.
It reduces taxes without reducing taxes. The base is constant, but aug-
mentation is two years out and real, rather than one year out and
projected/prayed for.
It out supplies, supply-siders.
It out conservatives, conservatives.
It reaches out to the best in people-and rewards them.
If you make more money this year than last, the extra is yours-not
subject to taxes. This is the "magic bullet" referred to in the September 2nd FAX.
It is the October Economic Surprise referred to in the September 16th FAX. It is
the "tactic/device" of the September 30 FAX. It is not in itself a panacea, and
although it is substantively a good first step, its power is as symbol and promise.
It is symbolic of change-the second term will be different; and it encapsulates
"the Vision" of unleashed growth, revitalization of the American Dream.
How powerful is it? It will elect the President of the United States. An
army of S.O.S.-ers massaging wrinkles and exerting themselves to the utmost,
might close the gap, but it will take something special to make the difference. The
problem at this late date is: how to send the "we've listened" message implicitly;
how to send the "second-term will be different" message implicitly; how to send
"the Vision" message implicitly. "If you make more money this year than last,
the extra is yours-not subject to taxes" is how to subliminally signal those
messages.
At this late date no amount of reasoned argument on the underlying
propositions will carry the day. Nobody will believe you. What can be done, and
it's not negative campaigning, is to use the underlying propositions negatively
by keeping the opponent on the defensive, off balance, and stumbling. I have
consistently derided the yoyo's who squandered the Bush lead (campaign offi-
cials), but must admit they are among the best at what they do. The point is this:
I cannot send an opponent reeling, but I can supply the underlying propositions,
a new one every day if need be, by which the mechanics could; provided that is, that
somebody (you) can hear what's being said in the first place.
To: Zoellick White House
Date: Sat, Oct 3, 1992 11:36 AM
Page 3 of 6
From:
Fax phone:
Quality: Standard
If we want to revive the economy, if we want to fire up the engines of
growth, if we want to get back "on track," we have to turn the people loose.
Men and women are the engines of growth.
If you make more money this year than last, the extra is yours-not
subject to taxes.
It is this making, this increase, this augmentation that must be put to work
if our Nation is to be revitalized. For lasting success, the drive behind capitalism
must be understood. I have done that by taking capitalism past its phenomenal
How, it works stage to a causal Why, it works understanding. To do SO I had to
Split the Adam-to make the hand visible-but there is not time to have you
read seven books; or to have those ideas debated in the marketplace. To quick-
start the economy, it is necessary to turn loose the engines of growth.
The prescribed policy has many benefits. On the strategic level, it is self-
selecting. There is no administration or overhead. Further, it is not experimental
in that it applies only in cases of success.
Also of strategic importance is that it meets a back "on track" V8. "wrong
track" Right/Left policy perception. It is the "none of the above" response to
government management, whether the managers are trying to lever up or lever
down. Further, it sends a signal to which the response will be: "At last, some-
body is listening." Finally, it is the sort of "change" that links the first to the third
century of America.
On the tactical level the benefits are even greater in number.
It is intuitively obvious to a majority of Americans.
It doesn't have to be "sold." The buyers will line up.
It's "capital gains" for everybody; not just a perceived elite.
It is the "percolate-up" answer to "trickle-down."
It solves the problem of a divided government. Congress can't be dealt
with or relied upon-cut them off at the knees, dry up their money
by keeping it at home.
It focuses on-whose money is it anyway. We'd rather make our own
investments, thank you.
It reverses the sapping of the vitality of America by reversing the drip,
drip, drip taxation that we are told is necessary for transfusions.
It exposes Congress as tax-farmers who sometimes let the share-crop-
pers keep a little more than at other times.
It lays bare the age of envy that equated need with means, and that
must be resolved before we can progress.
To: Zoellick White House
Date: Sat, Oct 3, 1992 11:36 AM
Page 4 of 6
From:
Fax phone:
Quality: Standard
Second term tax policy: If you "made" money, it's yours. Amplification: If
you made more money this year than last, the extra is not subject to taxes.
Argument
This revolutionary idea is based on cause and effect. Some of the argu-
ments are based on causes; some on effects. I am not a "policy" person; my
business is "why" things work, when they work. I have been a champion of
capitalism all my life. And, because I am intimate with it, I can critique it.
With the collapse of Communism, we're all Capitalists now-NOT.
The military (Cold War) is "won," but the economic (American Dream) war is
not Capitalism hasn't won; Communism imploded. People intuit that capitalism
is not what Capitalists do. They are ready to reject an Establishment, that can't
make a powerful system work.
Capitalism has been phenomenal. It is so powerful that it has survived
sophistic rationales (Invisible Hand; Manifest Destiny; Tool School; Economistic
Technology). But phenomenal capitalism has topped out. The philosophy of
growth has failed to grow.
So what is capitalism, and why does it work (when it works)? In a world
that grew 3% per century for millennia (like radiation from the big-bang), all of a
sudden it grew 300% in one century of capitalism. Why? Where did the extra
come from? The central question of economics, which no economist asks, is: Where
did the extra come from? I have spent a major portion of the last twenty years
answering that question.
It has been said that Americans were the first people in the history of the
world to give special meaning to the phrase: "to make money." Something won-
derful happened, all of a sudden more came out, than went in; how is this pos-
sible, it violates "natural law-the law of conservation." But it did happen; and it
was natural. So all other variables aside, what ingredient are we overlooking.
Man, men and women. If you want more out than went in, you have to
process it through a human being. Moreover a certain type of human being.
The kind that used to be given the special designation, American. Capitalism is
not actuated by a Divine Plan, by natural resources, by tools or factories, or by
pseudo-scientific econometrics. It works because state-of-the-art people work.
More importantly, in the Wealth (success) of Nations (succession) it is
important to understand that: money doesn't make money; ideas don't make
money; people make money.
To: Zoellick White House
Date: Sat, Oct 3, 1992 11:36 AM
Page 6 of 6
From:
Fax phone:
Quality: Standard
Transmittal Cover
Page 1 Of 6 Pages
Date: October 3, 1992
Origin: San Francisco, CA, USA
Receiver Information
Deliver to: Robert Zoellick, Deputy Chief of Staff
The White House, West Wing. First Floor
Washington, DC 20500
FAX Number: 202/456-1121 Telephone #: 202/456-2533
Sender Information
From:Jason Alexander
Initials:
c/o return FAX #: N/A
Check Phone: 415/391-9753
Instruction/Message
N/A
- THE WHITE HOUSE
WASHINGTON
October 1, 1992
Dear Mr. Alexander:
I have read each of the faxes you have sent.
However, I am confused on one key point: What
is your suggestion? (What you refer to as a
"tactic/device."; I certainly appreciate your
interest in helping President Bush, but I
haven't been able to determine your advice. If
you send it to me, perhaps I or someone else
could respond.
Sincerely,
Robat Zoellick
Robert B.
Deputy Chief of Staff
Mr. Jason Alexander
c/o Sitnalta Press
P.O. Box 2730
San Francisco, California 94126
Sent via FAX/PHONE 415/391-9753
10/1 5:15 PM
CC: CENTRAL FILES
Josen alexander
September 30, 1992
P/S type
Dear Mr read Alexander: each He confused faxes you on one to very as point:
have sent.
Mr. Robert Zoellick
Deputy Chief of Staff
The White House
I have cannot am (wort you refer appreciate you
haven't interest
West Wing, First Floor
Washington, DC 20500
Dear Mr. Zoellick:
what However, "facter is your I /devia in suggestion lelying & beenable I president certainly to determine Rush, send but your it to nor advice. 6 UI someone could perhase 7f" elser respond.
The big problem is that you guys talk amongst yourselves. No outside
input.
homes
There is a tactic/device that would turn things around; and I mean the
country. That it would also turn around the election would incidentally flow
from a massive gasp-at last, on the "right track."
This substantive, yet symbolic, turn is:
completely consistent with Republican philosophy;
circumvents the "one-sided" capital gains perception;
reduces taxes, without reducing taxes;
balances "trickle-down" with "percolate-up";
answers the "none of the above" lament; and,
is intuitively obvious to the congregation, if not the choir.
When I called last week to see if prior faxes were received and to ask to
book a call, in or out, a Ms. Constanza indicated they had been; when I voiced
the great contemporary American cry "Won't anybody listen?," she indicated
"somebody" would call, and took my number.
She further indicated that re-election matters should be addressed to the
campaign. Right, to those S.O.S. geniuses whose idea of creativity is to ape Harry
Truman. When I thought, finally, somebody who can understand an economic
argument (this is my third Chief Of Staff), I get a S.O.S. frosty, don't bother the
experts shuffle.
Okay, no return call; but it boggles the mind that somebody who want's
lightning to strike (Trumanesque) can't be bothered even to delegate "some-
body" to climb a hill, and fly a kite in the middle of an existing storm.
When I spoke to your predecessor and said, there was no chance the State
of the Union speech would do the job, he screamed at me: "How do you know;
have you heard the speech?" I know because I understand what "they" want to
hear. I told you the Acceptance Speech wouldn't do the job; and that the Detroit
Economic Club speech wouldn't last a week, but that it would buy you Septem-
ber. Here's a final prediction: Without an October economic surprise (described
above), it won't happen.
Absent that, what will likely happen, is just what you folks are warning
about. All for want of a nail For the record, but with no hope, I remain,
Yours truly,
JA
your alexander
September 18, 1992
Mr. Robert Zoellick
Deputy Chief of Staff
The White House
West Wing, First Floor
Washington, DC 20500
Dear Mr. Zoellick:
Great Oklahoma and Georgia speeches. The Election is about economics.
Keep it up.
About time somebody bought up "Investment" When you invest in a
house, you own it; when you invest in a business, you own it. When the Govern-
ment invests in people, it owns them-an un-American notion.
America defeated Socialism of the Right (NAZI-ism) in 1946; it defeated
Socialism of the Left (Communism) in 1989. All that stands in the way of revival
of the American Dream is the defeat of Socialism of the Center-big-government
Lesson of History: Don't set by and let it happen (Germany and Russia),
because somebody's got a cure...or a Plan-as in planned economy.
Remember, model change involves reorientation: "from peace through
prosperity"; to "prosperity through peace."
At last, an understanding voice,
JA c/0415/391-9753
your alexander
September 2, 1992
Mr. Robert Zoellick
Deputy Chief of Staff
druft
a
The White House
West Wing, First Floor
Washington, DC 20500
Dear Mr. Zoellick:
To hell with reasoned argument. There is no time left to be other than
pragmatic. The Election will be won or lost on the Economy. There follows a
statement of claims.
There is a "Republican" rationale that will carry the day.
It will allow Bush to articulate Vision.
It rationalizes the last 12 years and projects the next four, and beyond.
It out supplies, supply-siders.
It out-traditionalizes, Conservatives.
It gives hope to "the little guy."
It answers, "won't anybody listen."
It is SO quintessentially "American," it embraces the Perot disaffected.
It supplies the "none of the above" intuited by the electorate.
There is even a "magic bullet" policy pill.
It can turn around consumer confidence on a dime.
It will preserve Baker's miracle-worker reputation.
It will elect The President Of The United States.
In January I predicted to Skinner's Deputy that the State of the Union
Speech would not do the job. In fax to you at State (8-20-92), I predicted the
Acceptance Speech would not do the job. I can tell you what speech (theme) will;
it's as simple as that. For non-nutty bona fides, I can supply a local (Washington)
reference.
Yours truly,
JA c/o (415) 391-9753
Memorandum
Date:
8/20/92
To:
Robert Zoellick
202/647-6240
From:
Jason Alexander
415/391-9753
Subject:
S. O.S. America
Thesis: The World is in change; West as well as East. In a vague perception of
this, Americans are sending a Save Our Ship signal, and getting back a Same Old
Stuff (with wrinkles) response; which is alarming precisely to the degree that it is
meant to reassure.
No S.O.S. answer will suffice, no matter how evolved or permutated. In
this perception the people are ahead of their leadership. The cry for a "none of
the above" answer (viz. the Perot phenomenon) is being met by neither party.
The Vision thing, necessarily a matter of world-view, requires a broader field of
reference than standard (old model, Right/Left) party thinking allows.
Politics subsumes Economics. Insofar as it also subsumes Government,
Capitalism may be said to have "won" in that the new Eastern model is free
markets and democracy. But the "little people" in America intuit that Capitalism
hasn't won, Communism imploded; which is a very different thing. That the
Eastern Block is getting set to enter the Twentieth Century is no solace to people
conscious that they are getting set to enter the Twenty-First
Reality is a wonderful means of focusing attention. Reality dictates that
the next crisis after Government (democracy vs. totalitarianism), be Economic.
Communism did not survive its crisis. It is the job of the far-seeing to see that
Capitalism, does survives its crisis; which, Communism aside, is now exposed-
front and center: the crisis of the 90's is economic.
When a model (construct explanatory of experience) is in crisis, the
remedy is discovery-discovery of a more fundamental explanation that both
incorporates that which was useful, and yet still allows resolvement of anomalies
and crisis. Discovery is not repudiation of the old model, but its extension. It is
the carrying of once revolutionary, now prosaic, insights to higher and deeper
levels, which are once again invigorating. The thrust of this memorandum is an
advisory that a discovery-breakthrough-in old model capitalism, has oc-
curred. Metaphorically, have decoded the DNA of capitalism.
To put that discovery in context, it is equivalent to the shift from
Newtonian to Einsteinian explanation. Consider, gravity pre-existed Newton;
and growth, pre-existed Adam Smith. Newton "discovered" gravity in that he
explained, that or how gravity works. Smith explained, that or how increase
works. Both that or how breakthroughs were phenomenal. That is to say they
were not causal or why explanations. Einstein explained why gravity works, and
I have explained why growth/increase/capitalism works.
Application: The most immediate, journalistic application of a breakthrough in
understanding why capitalism works is: the Election of the President of the
United States.
Whichever Candidate is capable of articulating a mere sense of a causal
WHY, as opposed to the rehashed prose of ostensible rationales accounting for
our phenomenal That or How success, will win the next Presidential Election.
If neither, then either; it's a gamble. To gamble over The Presidency is stupid; to
gamble over the future of The United States is unconscionable.
The people are ahead of the politicians. They sense that we are bumping
against a top or lìd, and want to break through. They are wanting and waiting
for a "none of the above" answer. They are increasingly uncomfortable in an old
world model box.
Non-journalistically, in the near and long term, a breakthrough in under-
standing WHY the world works, i.e., what increase and augmentation is, where
it comes from, who makes it happen, and when, means solving for Freedom and
Plenty. A causal understanding of increase will eliminate all but willful poverty;
the S&L crisis and the budget deficit will be reduced (without inflation) to small
change magnitude. The politics of envy at home will evaporate; and so will
"third world" disparities and inequities. The population explosion will be de-
fused as success turns succession into quality of lives, rather than quantity of
lives. An understanding of Why means a causal (non-utopian) switching from
driven to driver-which competence brings with it the choice: to live in Peace,
in an environmental Garden of Eden.
My business is not Policy, but perception that the way out is onward and
upward, not in perpetuation but extension, means that there is a "magic bullet"
that could instantly turn the economy around, restore consumer confidence, and
offer such prospect of robust times that its perception would be self-fulfilling.
But it is precisely because the bullet is not "magic," but science (causal), that I
won't articulate it, unless and until, there is some understanding of why-what
works, works. And therein lies the rub.
Practical Problems: In December of 1990, I flew into Washington and visited
with a wise old Washington Hand on the premise that the next war after the Gulf
would be economic; and that now is the time to prepare for it. I made a prima
facie case for a breakthrough, causal understanding of capitalism; and asserted
that United States global security depended first and last on economic vitality
and its underlying conditions. To my dismay and chagrin, the judgement was:
"I believe I can agree with everything you've said; nobody will listen to you."
I doubt that today, eighteen months later, Dr. Ray S. Cline, Chairman,
United States Global Strategy Council, could well remember more than an im-
pression of my argument; but he vouchsafed a willingness to certify that a causal
explanation of capitalism was not some off-the-wall, over-the-transom, nutty
theory. I had asked that, because I thought non-nutty-ness was the first hurdle.
It wasn't; inertia was.
This is something like my tenth approach to the White House. Most of
which I judge never got past low level screeners, including secretaries and
switchboards; those I didn't mind. Secretarics and switchboards are not oct up to
do referrals on global strategy, and the election of a President.
But some of the calls did get through to the nominally entitled, or nomi-
nally empowered; people who should have passed-on, rather than passed on,
the calls to a performer. When the story of causal capitalism gets written, these
anecdotes will flesh out the horrors of a phenomenal Establishment grown de-
crepit or sclerotic. In the mean time it leads me to;
Alexander's Second Law: In a bureaucracy, the sense of importance in
dealing with important matters varies inversely; the further down the command
line, the more smug, dismissive and closed-minded the auditor. Rule of Thumb:
by third remove, personages are so important that even duty phone calls aren't
returned. (e.g. Mr. Graham). Corollary-1 the more important (bigger) the idea,
the more impervious, are progressively smaller screens. Corollary-2 the trickle
down model is osmotic, ideas may not percolate up.
Practical Examples: When I finally got through to someone in Skinner's Office
(right before the State Of The Union Speech) and observed that the American
Chorus was that nobody listened, he informed me that of course they did, they
get 30,000 calls a day, and how did I get past the comment line, since all I wanted
to do was tell the President how to get re-elected. (Some secretary/switchboard
operators are more than placeholders.) He literally screamed at me when I told
him that the vaunted speech would not do the job. "How can you say that! Have
you heard the speech; do you know what he's going to say!!" When I explained,
GIGO-computerese for, no more out than in-and, that no old model input (no
matter how cogently marshalled, or how adroitly delivered) could possibly
answer an electorate hungry for new model answers, he went ballistic.
The moral of this, of course, is that tonight's acceptance speech will not do
the job either. And for the same reason. I read you have some input. Perhaps it
will be state of the art. But it will not last the season. The cycle will be hosannas
by the audience; serious accolades or criticism by pundits (according to disposi-
tion); then dis-ease and disappointment; and finally, attack.
If you even see this, dubious, given that it's a bottom-up submission, and,
if you are not a screaming place-holder, you may care to know that there is a
broad and deep rationale that can repair/re-pair relations between candidate and
electorate; one that can be easily understood, communicated, and put to work,
albeit rudely and crudely. Still that is enough to win the day.
I've taken the high road, America Excelsior; and the low road, what it
takes to lock the election; nobody wants to listen. They'd all rather be "rite," than
President. I've sent one, or all, of seven books, not addressed to, but supportive
of the "way" out of this mess, to people who nominally are supposed to care.
This time I send only an ALERT that there is an answer. The high road is a
Twenty-First Century Pax Americana, the low road is perpetuation of Jim Baker's
miracle-worker touch. I've given up on the Candidates; they're too rite buffered
to do the right thing.
Without expectation, but with love of country, JA
FAX
Transmittal Cover
Page 1
Of
4 Pages
Date: August 20, 1992
Origin: San Francisco, CA, USA
Receiver Information
Deliver to: Robert Zoellick
State Department
Washington D.C. USA
FAX Number: 202-647-0753
Telephone #: 202/647-6240
Sender Information
From:Jason Alexander
Initials:
c/o return FAX #: N/A
Check Phone: 415/391-9753
I can also he
Instruction/Message
FAxed when
his allerte
alerted to
Switch to
send est 10/1
Josen October alexander 9, 1992
RBZ - I know there is no need to
Mr. Robert Zoellick
further respond to Jason Alexander.
However, do you want to see
Deputy Chief of Staff
what he sends in?
CDJ
10/9
The White House
show it to me
West Wing, First Floor
Just file it w/my response to him
Washington, DC 20500
Dear Mr. Zoellick:
I guess the notion of letting people have a one-time reward for augment-
ing/accelerating the economy didn't get a second read from the standpoint of
why it would work, as nobody called to see if and why knee-jerk, "wrong track"
objections lacked substance.
While I personally believe that one set of perceived "wrong trackers" can't
win without a signal of change, as from Capitalism to capitalism, it is true that the
negatives of the other set of perceived "wrong trackers" must be emphasized.
But the negative case must be shown to mean something; and not to be
merely mean-spirited, or else it will backfire. That is to say, the threads must be
drawn together. The instant peacenik squabble is not a "traitor" issue (nor,
except peripherally, a "slick" issue); but must be tied to the earlier "learned
political philosophy at Oxford" (alien) issue; and to Clinton's sound-bite on
ABC (I think in Fla.) that he was the next F.D.R.
As the threads come together, the warp and woof, fabric, must be seen to
be the Choice: big government (top-down) or a free people (bottom-up), able to
solve their own problems. The issue is economics: Planed Economy vs. Choice
Economy.
Americans don't have to vote for change; change is already underway.
It's sweeping the world, and we are not immune. The problem is how we face it.
Steady-on; or, with reckless disregard. Clinton's Plan doesn't represent change,
but retrogression; it's reversion, not renaissance. These are segue years. The
Choice of this election is: to keep our options open (alive to the future), or to
retrogress to a failed model tricked out in new clothes. To revert to the alien, big
government model would make us recidivists, economic Serbs and Croats; it
would ultimately tear our Country apart.
The Choice that is this election is whether to: 1) squander our gains, or 2)
steady-on, prepare for the twenty-first century. Points:
Clinton is well-meaning, but he's a victim of a backward/progressive
past. That's his problem; if elected, it's ours;
Clinton hasn't got it right yet (none of the above); he should come again
a second time ('96?) if he can do better, (win/risk high; loss/risk
repairable);
Clinton is surrounded by scary people;
This is no time to experiment;
In times of change, when it comes down to it, do prudent people really
want to gamble;
Especially on an alien philosophy; that's already been repudiated once,
nationally; and that has failed catastrophically, internationally;
When change is happening, "steady-on" can moderate wild swings;
To vote Republican, you don't have to like George Bush
but you do have to Love America.
I still think the segue between a once and future America requires at least
the glimmer of something more than "more of the same." Steady-on, if it is to be
believable, must have a compass oriented by more than weak negatives such as
slick and recidivistic. The Trust issue won't finally sell, if it is nothing more than
a "keep the faith" appeal to a people becoming amenable to the contra-argument
of voodoo economics, when given repeated evidence of a zombie economy.
The point is, that some signal must be given-of giving the country back
to its people. If you don't like my, "ladies and gentlemen, start your engines,"
device, then devise one of your own; here are the criteria:
it must take government out of the loop;
it must apply equally, equably, without regard to race, color, national
origin or economic condition;
it must not be at someone else's expense (transfer payment);
it must be symbolic of a-both/and-out-the-top-augmentative extra
-answer that both Right and Left (none of the above) can't handle;
it must signify a new orientation toward individual empowerment and
enrichment.
It must not be a "government program." As to government:
it must be revenue neutral, or enhancing, so that any producer's
gain is not at any non-producer's expense;
it must de-glamorize public service, as a not-where-it's-at job;
it must viscerally have such common-sense appeal, that it causes
those Belt-heads who would rather be "right," than elect a
President-to blank-out.
As I've run out of paper and nobody's listening to the real key point, that
substance elects Presidents, I stop.
Josen October alexander 12, 1992
Mr. Robert Zoellick
Deputy Chief of Staff
The White House
West Wing, First Floor
Washington, DC 20500
Dear Mr. Zoellick:
Clinton came in third on substantive response. BUT, the spin doctors gave
him first, because of coherence.
Perot came in second, because of his focus on theme. The point is: "sim-
plistic" or coherence, elevated marginality to semi-noble.
Republicans are so "rational" that they win all the battles; but lose the
war. Like reductionist scientists they think, if you're "right" in the parts, you get
the whole. Baloney, the whole is greater than the sum of the parts.
In Bush's closing statement he articulated an international philosophy and
100,000,000 people hung in anticipation of the balancing strophe of a "national"
philosophy. And he left them hanging!!
For two years I've tried all sorts of approaches to The White House,
with the message that the country is crying for a whole-sum (not reductionist)
"vision." That was possible, because I can tell you what the "no-vision" majority
only "feel." Your snide "confused on one point" response to my snide "for the
record, but no hope" fax, illuminates the alienation that has grown between the
President and his country: non-whole-sum-ness.
The point to each of my faxes was the importance of a whole-sum view.
No demonstration of reductionist competency can satisfy. No covering of all the
bases, or continents, can yield, a world-view which, right or wrong, must be seen
to be present in some measure. I answered your tactic/device question, because
that's the question you asked. The answer never stood a chance, because you
were confused on the one key point-the importance of a whole-sum context.
There can be no hope of election without it.
The entire "won't anybody listen" phenomena is a plea for articulation of,
not "traditional values" but, a traditional valued based game-plan. Clinton has
offered a "Plan" and you people have attacked the pieces instead of the whole.
Americans are not comfortable with "more government" ("none of the above"),
but instead of leveraging this whole-sum distrust, you took the piece "trust" and
squandered it.
I won't make the point here that it's not the people's job to provide an-
swers to leaders, but rather to provide concerns that require leadership; nor is the
point that the Bush Administration seems dedicated to missing the point. of the
election. The point (unless you have abandon all hope) here is: why do you
refuse to "get your act together?"
Why spend all that time spin-doctoring the back-end (hopeless), when
the pragmatic expedient of a little doctoring up-front would give you the only
chance you have?
For the record...
JA
Transmittal Cover
Page 1 Of 3 Pages
Date: October 12, 1992
Origin: San Francisco, CA, USA
Receiver Information
Deliver to: Robert Zoellick, Deputy Chief of Staff
The White House, West Wing, First Floor
Washington, DC 20500
FAX Number: 202/456-1121 Telephone #: 202/456-2533
Sender Information
From:Jason Alexander
Initials:
c/o return FAX #: N/A
Check Phone:
N/A
Instruction/Message
N/A
THE WHITE HOUSE
WASHINGTON
September 15, 1992
Dear Mr. Ambassador:
Thank you for your thoughtful letter. You
accomplished great things for your country, and
I was pleased to be involved, even in a small
way, in helping the courageous people of
Estonia.
Best of luck to you and your country.
With best regards,
Sincerely,
Robert
Robert B. Zoellick
Deputy Chief of Staff
Ambassador Lennart Meri
Embassy of the Republic of Estonia
Helsinki, Finland
Ersti Vabariigi suursaathond
Embassy of the Republic of Estonia
Helsinki
Mr. Robert Zoellick
The White House
1600 Pennsylvania Ave
Washington DC
USA
August 19, 1992
Dear Mr. Zoellick:
Please accept my congratulations and best wishes on Your
appointment to a new post at the White House.
I have only the best memories of our meetings and work together and
I am sure that You will make an equally outstanding success in Your
new position.
I look forward to seeing You again. Until that time, I remain
Sincerely Yours
Linnathin
Lennart Meri
Ambassador
Mr thoughtful I letter was plsed you the you accomphided courageous to Le involved, industred,
Dear gral Thank things ever for small for byen Estrnic. your way, country in helps t it your best country. Lalping requests
people in 91 of Bes' of luck to you with
Roz
THE WHITE HOUSE
WASHINGTON
September 15, 1992
The Republic of Estonia
630 Fifth Avenue - Suite 2415
New York, New York 10111
Would you please forward this letter
from Robert B. Zoellick, Deputy Chief
of Staff at the White House, to
Ambassador Lennart Meri at your
Embassy in Helsinki.
We did not have his address.
Thank you,
Cozeta D. Johnson
Cozetta D. Johnson
Assistant to
Mr. Zoellick
202/456-2534
THE WHITE HOUSE
WASHINGTON
Robert B. Zoellick
The Republic of Estonia
630 Fifth Avenue - Sutie 2415
New York, New York
10111
ATTENTION: FOR FORWARDING TO
AMB. LENNART MERI, HELSINKI
to Devres
OPL Jeff Vogt has received request from Semi-conductors
NAME:
Industry Assn 6/8 CEOs or equivalent -- to meet with
Ross
either/or RBZ or DRoss for 20-30 min tomorrow 9/10 Thurs.
DATE:
They wrote 8/25 asking to see POTUS & we regretted.
TIME:
RBZ will see
DRoss shd see
regret
Jeff 7983
CDJ 9/9 1:45pm
PHONE:
THE WHITE HOUSE
WASHINGTON
SEPTEMBER 8, 1992
MEMORANDUM FOR BOB ZOELLICK
DENNIS ROSS
PP
THROUGH:
DAVID DEMAREST
FROM:
JEFF VOGT Jun
SUBJECT:
SEMICONDUCTOR INDUSTRY ASSOCIATION MEETING
REQUEST
Attached you will find an invitation for the President to meet
with Semiconductor Industry Association Board Members in
Washington, D.C. on September 10. While this is not possible,
SIA has asked to meet with the Chief of Staff, or either of you.
This is a key sector of support, based largely in California and
Texas. SIA officials met with Clayton Yeutter approximately 3
months ago. Two key concerns they cited in the meeting were
retaliatory measures against Japan, as well as funding levels for
SEMATECH. They discuss similar issues in their letter of
invitation.
SIA believes retaliatory measures are necessary if Japan does not
honor the Semiconductor Agreement. The new semiconductor market
share report, which is due out this month, is expected to show
market gains for the U.S. semiconductor industry, around 15%.
If either of your schedules permit, we would recommend you meet
with this group of industry leaders. Please let us know if you
need additional information. Thank you.
SIA
SEMICONDUCTOR INDUSTRY ASSOCIATION
FAX (408) 246-2830
4300 Stevens Creek Boulevard . Suite 271
San Jose CA 95129 (408) 246-2711
August 25, 1992
The Honorable George Bush
The White House
Washington, D.C. 20500
Dear Mr. President:
America's high-technology companies were heartened by your pledge to make the
United States an economic superpower and an export superpower.
Members of the Semiconductor Industry Association (SIA) Board of Directors
would like to meet with you on September 10th to discuss strategies for increasing U.S.
exports and strengthening America's industrial and technological leadership. A list of
the chief executive officers and senior executives on the SIA Board is attached.
As you know, semiconductors are one of the key industries of the 21st century.
Semiconductors are the "brains" of electronic systems such as computers,
telecommunications equipment, factory automation systems and "smart weapons." The
electronics industry employs 2.4 million Americans, more than double the number of jobs
in steel and autos combined.
As the founders of some of America's most successful high-tech companies, the
members of the SIA Board have some unique insights regarding job creation, capital
formation, opening foreign markets, and keeping America at the cutting-edge of
advanced technologies. U.S. semiconductor companies invest 13 percent of sales in
R&D, compared to the national average of 3-4 percent.
We are particularly interested in discussing the U.S.-Japan Semiconductor Trade
Agreement, and strategies for leveraging the federal government's $76 billion R&D
investment to create jobs and strengthen America's economic competitiveness. The
federal government's investment in SEMATECH, for example, has helped meet
important defense needs, and has also led to the first increase in world-wide market
share of the U.S. semiconductor manufacturing equipment industry since 1981.
Sincerely yours,
andrew aProam
Andrew A. Procassini
President, Semiconductor Industry Association
SIA BOARD OF DIRECTORS
William Warwick
President
AT&T Microelectronics
W.J. Sanders
Chairman of the Board & CEO
Advanced Micro Devices
Ed Caldwell
Vice President, Semiconductor Operations
Digital Equipment Corporation
Phillip Farmer
Executive Vice President
Harris Corporation - Semiconductor Sector
George Bodway
Manager Corporate Planning
Hewlett-Packard
Michael Attardo
IBM Vice President & President General Technology Division
IBM Corporation
Gordon Moore
Chairman of the Board
Intel Corporation
Wilfred Corrigan
CEO & Chairman of the Board
LSI Logic Corporation
Joseph Parkinson
Chairman & CEO
Micron Technology, Inc.
James Norling
President and General Manager
Motorola, Inc. - Semiconductor Products Sector
Dr. Gilbert Amelio
President & CEO
National Semiconductor Corporation
A.E. Ross
Vice President, General Manager
Digital Communications Division
Rockwell Communication Systems
William Weber
Executive Vice President &
President, Semiconductor Group
Texas Instruments Incorporated
Alfred Stein
Chairman & CEO
VLSI Technology, Inc.
THE WHITE HOUSE
WASHINGTON
September 17, 1992
MEMORANDUM FOR JAMES A. BAKER, III
CHIEF OF STAFF
FROM:
C. BOYDEN GRAY any
COUNSEL TO THE PRESIDENT
EDE HOLIDAY
ASSISTANT TO THE PRESIDENT AND
SECRETARY OF THE CABINET
SUBJECT:
Suspension of the Davis-Bacon Act
Attached for your consideration and decision is a decision
memorandum recommending a Presidential proclamation of a national
emergency and suspension of the Davis-Bacon Act.
Attachment
9/24
See back page for action
P/S send to:
Ede Holiday
Boyden Groop
Phil Brody (frang further distribute
N.CK Calid
Marlin F.kwater
CC. R.G. Darman
ess
DAVIS-BACON ACT SUSPENSION
Issue: Whether the President should selectively suspend the
Davis-Bacon Act in connection with the recent disasters (the Los
Angeles riots, Hurricane Andrew and Hurricane Iniki) by issuing a
proclamation declaring a "national emergency" to have resulted
from these disasters.
Background: The Davis-Bacon Act requires that contractors with
Federal building contracts in excess of $2000 must pay each
employee the "prevailing wage" as determined by the Secretary of
Labor, for the type of work that the employee performs. It is
widely recognized that Davis-Bacon inflates the cost of Federal
construction projects, frustrates job creation, and hinders
minority employment. Suspending Davis-Bacon would result in
billions of dollars in cost savings and the creation of thousands
of jobs.
On June 30, in response to a memorandum of June 19 suggesting the
suspension of the Davis-Bacon Act, the President asked that the
necessary documents be prepared without deciding the question
whether to suspend the law. (The Labor Department has prepared
the necessary materials and these papers are now in circulation.)
The question at this point is whether to suspend the Davis-Bacon
Act by declaring a "national emergency" as provided for in the
Act. The declaration would be based primarily on the continuing
economic plight of the Americans affected as a result of the
recent hurricanes and the Los Angeles riots. These disasters are
national in scope, because they affect millions of U.S. citizens
and will result in a major commitment of Federal agency personnel
and Federal funds.
The Solicitor of Labor believes that the suspension may be
limited to the specific areas of the country directly affected by
the riots and the hurricanes, and the Justice Department believes
a limited suspension is defensible. The President's decision to
suspend Davis-Bacon may be challenged in court, but a court would
be very unlikely to disturb a President's judgment as to what
constitutes a "national emergency." The decision to limit the
suspension to specific localities may also be challenged; here,
although there are legal risks involved, we believe they are not
unacceptably high.
Advantages:
-- Would demonstrate decisive Presidential action in
the domestic policy area that would create thousands of
jobs in the inner cities
-- Would open up job opportunities for minorities,
whose exclusion was a primary purpose behind enactment
of the law in 1931
2
Would be consistent with the President's
deregulatory initiatives
Would thwart legislative efforts to prevent
implementation of "helper" regulations
Would mollify critics of the Administration's brief
in Boston Harbor
Disadvantages:
-- Would incur the wrath of labor unions and union
supporters in Congress, who will argue that suspending
Davis-Bacon is a political act
-- Would bring pressure to bear on the Budget
Enforcement Act, which also contains an emergency
declaration provision that permits spending over the
budget caps (but there is nothing in the law that links
these two emergency provisions)
-- We may be challenged about why we failed to take
this action after the L.A. riots this spring
Recommendation and decision: Suspend Davis-Bacon for the
duration of the national emergency and limit the suspension to
specific localities. Secretary Martin supports the suspension of
Davis-Bacon, but would limit the suspension to the areas affected
by the hurricanes. Secretary Card, in his capacity as chairman
of the task force established in response to Hurricane Andrew,
supports a suspension of Davis-Bacon targeted to the South
Florida area.
Approve
Disapprove
Discuss
with JAB this, the excention but first carefully we need planned. to wlas In affected particular: was by the Harrican
would like to proced ensure that
we
9/24
rehulding
(1) (2) have The we suspension need an exact should fact only description sheet arry explaining of (copee those people benefits who for might : (a) then have quicker bur hunt by the
(3)
(2) (5) we Mave (b) need Refore sure a annumary, good the more Calios move people need office when , I'll to to ust work is crime 1-5 live in savings OMB He are Ede Marlini wor dore. involvag (n t (d) her office shrve office Boyden, any f office Campaign to pull affected this me This departments, together hayed RB.2 with t the
(6)
Ill
ok
DONALD DEVINE COMPANY
DPC
MANAGEMENT CONSULTANTS
BUSINESS, GOVERNMENT, POLITICAL
Hon. Donald J. Devine
President
I repled by phone
August 26, 1992
Hon. Robert Zoelick
Deputy Chief of Staff
The White House
1600 Pennsylvania, Avenue, NW
Washington, DC 20500
Dear Bob:
Great minds run in the same direction. Seriously, this is a
great idea, for policy reasons and politically. I hope you will
persevere.
If I can be of assistance, do let me know.
Dr
Sincerely,
Donald Devine
919 PRINCE STREET, ALEXANDRIA, VIRGINIA 22314
(703) 683-6833
DONALD DEVINE
The Washington Times
WEDNESDAY, AUGUST 26, 1992
Bush at bat: Solid hit or a pop-up?
A bit short
United States and with Pacific na-
tions that want their future secure
DEVINE
achieved his first goal - he consoli-
with America's. We can use the at-
dated the Republican base and the
traction of America, which, after all,
From page G1
South, the main reasons for the
on trade
is the largest fully integrated mar-
heavy social conservative emphasis,
ket in the world, to assure strong
ing almost to the convention floor
and the supply-side commitment to
economic ties across the Atlantic
and the "explanation" coming from
reducing taxes (although with
and the Pacific. America will be an
Mr. Darman's office in the White
deficit-reducing requirements for
he Astrodome remains the
T
House. The next time, the battle be-
simultaneous spending cuts).
toughest ballpark to clear
export superpower and a military
tween the two old allies could turn
the fence. President Bush
superpower."
The polls also show the remain-
out differently as Mr. Baker consoli-
ing challenge. The Illinois-to-New
hit a solid shot to right at the
In his speech, Mr. Bush did call for
dates his power. Mr. Baker was
Jersey belt and the Reagan Demo-
GOP National Convention, but
making the United States an "export
strong enough to get the concept of
crats have not moved. After more
wound up with only a ground-rule
superpower," did say the world is "in
trade expansion as one of the five
consolidation of the base, it will be
double - a solid bounce into the
transition" and that the "defining
major themes of the speech, to have
necessary to win these skeptical vot-
seats, but not over the big wall.
challenge of the '90s is to win the
it associated with vision and have it
ers. The only thing that will do so -
The Washington Post/ABC poll
economic competition." He even
labeled as the defining challenge.
together with exposing Bill Clinton's
recorded a massive shift, but not
said, "In this election, you'll hear two
For now, that is enough.
record on taxes, spending, the draft,
enough to win. Mr. Bush moved from
visions [this was the written text, but
The campaign decision to give
crime and welfare - is vision. Mr.
a 34 percent to 60 percent post-
Mr. Bush actually said 'versions' -
the conservatives the platform,
Baker, whatever conservatives think
Democratic Convention deficit to a
he really finds it hard to say that
rules and speeches worked. By the
of his past, has the answer; and only
40 percent-51 percent spread only
word] of how to do this. Theirs is to
final day - even before the pres-
his ascendancy will guarantee both
9 points down from 26. The public
look inward and
ident's speech - the Houston Post-
a winning vision and a sound policy
mood is unstable, mostly people
protect what we
Hotline poll found that Mr. Bush had
base for the future.
whose minds are not made up being
already have
swayed momentarily by one conven-
Ours is to look for
tion or the other. But Mr. Bush has
ward - to oper
put the Republicans on the field
new markets, pre-
within striking distance.
pare our people to
This column was looking for a
compete, to re-
grand slam and only saw a sharp hit.
UNITED STATES
store our social
Here we predicted a shift of the po-
fabric - to save
litical axis based upon Ronald Rea-
and invest so we
gan's 1976 "North American Ac-
can win."
cord" idea away from the sterile
From here, this
supply-side vs. deficit-reduction
is the beginning
catfight to the higher ground of ex-
of the definition
panding trade - to extend the North
of a Bush vision for a second term.
American Free Trade Area to all of
When added to a platform and accep-
South America and then all of Cen-
tance speech supporting virtually -
tral Europe that the Common Mar-
there were a few lapses, but not-
ket will not admit, and to the market
hing's perfect - every social, eco-
nations of Asia, too, if the Japanese
nomic and congressional reform on
will not let them play free trade ball.
the Reaganite wish-list, delivered in
In discussions with literally
a hard-hitting but fair manner, what
scores of cynical journalists and
conservative could complain? Yes,
hard-bitten pols at the convention,
with the full vision in the speech, it
they all agreed Mr. Bush would have
could have been won in the seventh,
won the day with such an agreement.
but there are two innings to go.
What made such a move plausible
was James A. Baker III's departure
What happened for the speech?
speech as secretary of State, when
Well, conservatism's Peck's bad boy,
BillD
he said: "The key to America's
Richard Darman, got into the game
growth, expansion and innovation
between the Baker speech and the
has always been America's openness
president's. Mr. Darman pushed his
to trade, to investment, to ideas, and
way into the speech-writing at the
Houstonian Hotel with Robert
to people. Therefore, as we enact the
Zoelick, who had written the Baker
North American Free Trade Agree-
speech, and moderate Ray Price and
ment, we should also wrap up the
newcomer Steve Provost. The latter
global trade negotiations. Then we
can build an expanding network of
two basically did the phrase-making,
CANADA
free trade agreements with the mar-
and the brawling was between
ket democracies of Latin America
protect-the-administration's-record
Darman and protect-Baker's-new-
UNITED STATES
that are turning to us, with the East-
directions Zoelick.
ern European democracies that
want a special relationship with the
We had predicted that Mr. Baker
would be smart enough to win the
battle for the new vision in the
MEXICO
Donald Devine, former director of
speech. It turned out that he was
the U.S. Office of Personnel Manage-
smart enough, but not powerful
ment, is a columnist and a Washing-
enough with speech drafts chang-
ton political and management con-
sultant.
see DEVINE, page G4
FREE TRADE ZONE
The Washington Times
COMMENTARY
THURSDAY, AUGUST 20, 1992
DONALD DEVINE
Reaching for
a stunner
y bet is that George
to dominate the election, even if evi-
M
Bush is going to hit a
dence of its success does not show in
home run on the jobs
the early polls.
issue at the Astrodome
Are people not anxious about
tonight that will take him right back
NAFTA already? Yes, but this is of-
to the White House for a second
fense. Japan and the European Com-
term.
munity want to get tough? How do
With everyone talking about
they want to face this worldwide
supply-side tax cuts or big spending
combine? The fact of this large zone
ceded the jobs issue - did his
reductions as possible means to cre-
is the most logical and effective
speech suggest a moving away? -
ate jobs, Mr. Bush will dramatically
means by which to get every nation
by adopting protectionism, support-
shift the axis to the most basic of all
on board for free trade and more
ing existing jobs over creating new
jobs-issues - trade. From Adam
jobs for all nations.
ones. This has been the trade union,
Smith on, it is basic that more trade
The problem with supply-side and
New Deal approach to jobs, which so
means more jobs. Indeed, it is axi-
spending cuts is that they were the
dominated American politics the
omatic.
whole context of the 1980s Reagan
But who cares about trade? How
Revolution. They are boring, politi-
last half-century. But it has been a
about a free trade zone that extends
cally. As the always perceptive Gip-
loosing Democratic strategy in ev-
ery recent presidential election.
the North American Free Trade
per himself noted Monday, that era
Protectionism is a losing strategy
Agreement to all of South America
S over and now it is a "time for
because it is now clear it looks to the
and then to Eastern Europe and the
choosing" a bold, new direction.
past, to protect what was, while
former Soviet Union - is that dra-
matic enough? It could mean liter-
The only intellectual threat to
Americans want to know about to-
ally millions of new jobs, in the most
this course is an extreme environ-
morrow. They now see an interde-
mentalism, such as expressed by Al-
pendent world and instinctively
competitive industries. More impor-
tant, it gives what America is anx-
bert Gore in his now-famous book.
know competition, not protection, is
Many in the Bush administration be-
necessary for future growth. Recog-
iously seeking, reassurance there
lieve in their heart-of-hearts that the
nizing this, dissembling protection-
will be jobs in the future. It is an idea
suggested in this space several
environmentalists have the morally
ist politicians retreat to saying it is
months ago, and it did receive some
superior position and forget about
foreign trade barriers that are the
the jobs these regulations cost (and
problem - all that is needed is a
attention in the campaign.
it promised to protect), and they
level playing field.
Will people immediately rally to
have lost the policy debate every
If it is worldwide trade fairness
this new proposal? No. The first re-
time. But Americans are common-
that is the goal, the United States can
action will be wariness, even fear.
sensical and will choose people over
do a great deal. The World Bank es-
But this is just what Mr. Bush needs.
He, simply, must stand firm on a dif-
insects - as Pat Buchanan put it in
see DEVINE, page E4
ficult, even unpopular, issue Rich-
his speech - any time they are given
ard Nixon knew how to manipulate
the opportunity. Indeed, in the hun-
dreds of referenda on this tradeoff-
this better than anyone - but one
that is intellectually power ful
issue, jobs won almost every time.
enough to succeed over the long run.
Mr. Buchanan would have con-
Politically, the best part of the
proposal is that the unions will go
Donald Devine, former director of
wild. They already have hit the roof
the U.S. Office of Personnel Manage-
over NAFTA and they will go to the
ment, is a columnist and Washington
moon over this. The whole left will
political and management consult-
follow them and Bill Clinton will ei-
ant.
ther have to join or lose his whole
base. That is the polarizing stroke
that places George Bush in position
DEVINE
- would end the present malaise
overnight. It would even be a mild
From page E1
shot across the bow to Japan, since
timates that the American barriers
its major beneficiary would be the
to trade against the developing coun-
nations of East and South Asia that
tries are greater than those of Japan
are its natural markets.
and the European Economic Com-
Instead of blaming the foreigner,
munity combined. As the accompa-
Ronald Reagan began his quest for
nying Table shows, only a 50 percent
the presidency invoking the image
reduction in U.S. trade barriers
of a "North American accord" for a
would increase Third World export
free trade zone of prosperity for the
trade by $27.5 billion. By compari-
hemisphere, now rapidly approach-
son, the effect of Japan and the EC
ing fulfillment with the Canada and
reducing their barriers by that
Mexico agreements. As the Table
much would only increase trade by
shows, Latin America is an obvious
$22.5 billion among the developing
extension, and Central Europe
countries.
makes it bold. Rather than fearing
Of course, the protectionists are
imports, Mr. Reagan realized they
concerned with Japan's and the EC's
substitute for inefficient domestic
barriers against us. But if the status
production and move American
quo remained unchanged with them
capital and jobs to more competitive
and we eliminated just half of these
uses.
Third World barriers, the resulting
As far as the moral superiority of
$27 billion shot in the arm for the
American environmentalism is con-
American economy - with plenty
cerned, the World Bank has also
left for retraining displaced workers
noted that "the most effective means
INCREASE IN DEVELOPING
COUNTRY EXPORTS
With a 50% cut in trade barriers by the U.S., Japan and the EEC. (Figures
in billions of U.S. dollars).
Japan and
United
European
States
Community
East Asia
$16.3
$10.8
Latin America
7.0
2.6
South Asia
2.5
2.0
Eastern Europe
0.9
2.9
Sub-Saharan Afric
0.4
1.8
Middle East/N.Afric
0.2
2.4
Developing Europe
0.2
0.0
Total
$27.5
$22.5
Source. U.S.: Unpublished World Bank data; Japan and EC: "Global Economic Prospects and the
Developing Countries," World Bank, 1992.
The Washington Times
of alleviating human distress" in the
to add to their own economic pros-
world would be to provide sanitation
perity - a kind of wealth of nations
and safe water to the 2 million poor
(somebody should write a book).
in the world - mostly children -
A policy of aggressive trade ex-
who die from polluted water each
pansion is the silver bullet for the
year. As the Wall Street Journal's
funk of present economic policy. It
Alan Murray has noted, the technol-
gives hope both for jobs and the envi-
ogy for this greatest mission of
ronment and, even better, puts
world compassion is extremely sim-
Clinton-Gore in a squeeze - having
ple, but the costs are great and can
to choose between new jobs, a better
be paid only through general world
environment and a more moral
economic growth spurred by trade.
means of helping the world's poor, on
Instead of mostly symbolic at-
the one hand, and the Democrats'
mospheric and deep-ocean treaties
big-stick protectionist allies, on the
against comparatively low-danger
other.
environmental problems at high
With an aggressive worldwide
costs of jobs, and mostly dismissed
trade zone creating billions of dol-
appeals to Western foreign aid char-
lars in wealth and millions of jobs, on
ity, expanded world trade - even
an issue where Mr. Bush truly has a
without Japan and the EC - truly
sound record, there can be a return
can solve the serious environmental
to Reagan-optimism, with hope for
pollution problems that do exist by
jobs and a better life - and a second
generating the wealth to live better
term. Will he do it? Jim Baker's
and to buy the necessary technology.
speech last week had a hint of it, and
And it can do so by appealing to the
he may just be smart enough to rec-
self-interest of the wealthy nations
ommend it to his boss.
DONALD DEVINE
MONDAY, FEBRUARY 3, 1992
The Washington Times
eorge Bush has managed
How about creating a free-trade
ciation. Not only is in an area close
The idea of confronting Mr. Bu-
agreement embracing nations on
to our own markets, but the potential
G
both a major policy blun-
chanan on the issue apparently en-
der and a significant po-
tered no one's mind, either at the
President
the rim of the Common Market? It
for growth is high if these nations
litical misstep on a single
White House or in the campaign. It
would exclude Continental Europe
slip their historic statist economies.
should have since there were pre-
- especially the troublesome
Adding these and the embryonic
in his arena of strength, foreign
affairs He cannot afford many more
cious few issues upon which George
misses boat
French but would include Britain,
Central American Common Market
such miscalculations and expect to
Bush had consistently promoted a
which already resists the Brussels
to the Mexico free-trade zone would
survive for a second term.
conservative position on the issues.
bureaucracy, Canada, Eastern Eu-
provide a tremendous boost in eco
The policy error is more signifi-
In repeated conversations with con-
cant for America's economic future.
servative leaders nationwide, trade
on trade
rope and the republicsof the former
nomic activity.
Soviet Union. Even at bargain base-
Finally, why not add the free trade
Watching an American president ap-
was the Buchanan position that most
ment communist prices, exports
nations of Asia and create a world
pearing to promote America First in
distressed them, and one of a very
(which are a more realistic measure
wide prosperity sphere not domi
Japan, European Community nego-
few issues upon which they whole-
frittered away his moral high
than artificially measured GNP)
nated by any one nation? This com
tiators that day broke discussions
heartedly preferred Mr. Bush.
ground on trade. How much better if
from the United States to this group
bination would dominate Japan and
with the United States on a mutual
Trade may be gone for the New
Mr. Bush could develop a bold strat-
of nations in 1990 amounted to $110
Europe combined, $207 billion to
reduction of trade barriers, and put
Hampshire primary, but the Demo-
egy on trade that actually could re-
billion, compared to $75 billion to the
$165 billion, without even consider
in jeopardy the whole General
crats will smell the blood in the
sult in the prosperity and job growth
remainder of the European Eco-
ing the size of the U.S. market. (See
Agreement on Tariffs and Trade
water and raise the stakes. No mat-
people are demanding. Impossible?
nomic Community.
Table.)
(GATT).
ter how much the president gives,
Not at all. The solution to the eco-
American agricultural interests
they will demand more - quoting
nomic malaise in today's interdepen-
The core of the new Free World
Indeed, success would be much
trade zone would be the United
likelier with American leadership
mere reportedly ready to end all
Mr. Bush's remarks in Japan. Mr.
dent world is more global economic
States' own internal market, the
working with nations that actually
their farm subsidies if the Europe-
Bush implicitly recognized this in
activity to produce recovery. Pre-
original "trade zone" upon which
want more trade, than through rely-
ans were willing to phase out their
his speech to the American Farm
sumably this is what the president
much of its prosperity developed. At
ing upon the GATT bureaucracy to
programs. The U.S. budget savings
Bureau convention the following
believed until he went to Japan. All
$1,653 billion, it dwarfs the world
which Mr. Bush looks for a solution
would be $50 billion with potential
week, defending his trip and repeat-
that is necessary is to find a solution
that does not need the Europeans but
trade problem insofar as recovery is
This institution is greatly swayed by
savings to American consumers in
ing earlier free-trade rhetoric. But
one that, if successful, might bring
concerned. Here, Mr. Bush could re-
Continental Europe and by three
the hundreds of billions each year.
he only looked more indecisive.
emphasize the de-regulation efforts
senior bureaucrats from India that
Such was the price to American in-
Rhetoric will not do once he has
them around.
he, himself, supervised in the Ron-
represent Third World nations seek
terests of what was clearly per-
ald Reagan years.
ing shelter from the liberalizing af
ceived as a politically motivated ac-
fects of free trade.
tivity on the part of its president.
A recent study by Thomas Hop-
Politically, Patrick Buchanan was
ECONOMIC STRENGTH OF
kins presented to the National
American leadership is what the
hol III the presidential race a month
WORLD TRADE COMBINATIONS
Chamber Foundation within hours
world's people are seeking to in
before he had George Bush changed
of Mr. Bush's return found the di-
prove their economic condition
(billions of dollars)
from champion of the U.S. Mexico
rect, measurable cost of federal reg-
More important, Americans them
free trade agreement to appear to be
Country/Reglon
U.S.
Country/Reglon
U.S.
ulation at $400 billion per year be-
selves are looking for a realistic way
exports
exports
yond that in the budget - and
toward prosperity. Rather than be
the protector of American auto ex-
Japan
$
89.6
estimates are that the indirect ef-
swayed by Mr. Buchanan, Mr. Bush
utives probably the least attrac-
Canada
$82.9
tive political group in the country
fects are two or more times higher.
had the opportunity to provide a real
Britain
23.4
Continental Europe
75.6
solution to malaise - and to gain
against Japan. Not only did the pres-
Eastern/Central Eur.
4.2
Rim Europe Total
110.5
Significantly, per household costs
politically, too.
ident lose an issue against his GOP
challenger but, more importantly, he
Central America
2.9
Latin America
43.4
of regulation have gone from $5,800
What would Mr. Buchanan have
when Jimmy Carter began de-
looked weak and vacillating.
Australia/New Zealand
9.6
11.4
said if Mr. Bush walked into New
Taiwan
regulating, down to $4,100 under Mr.
Hampshire with $50 billion in ag
Hong Kong
6.8
Singapore
8.0
Reagan and up again to $4,500 under
riculture savings? It would all have
South Korea
14.4 U.S. Internal Trade
1,653.3
Mr. Bush.
been over and the Democrats
Donald Devine, former director of
The most exciting freeing of
would have been silenced, too "
the Office of Personnel Manage-
Source: Statistical Abstract of the United States, 1991, pp. 786, 806-809.
trade restrictions is taking place in
not too late for leadership; but al
ment, is a columnist and political
The Washington Times
the Latin America Free Trade Asso-
most.
and management consultant.
THE WHITE house
WASHINGTON
Senator Symms called you on Tuesday reference
the attached. Sarah Alexander has prepared
talking points for you on this subject.
He will call you again today to discuss.
Also attached is an overview from Sarah
on the issue -- I have further, lengthy
background in the form of back and forth
correspondence from Ms. Maldanado to Sarah
and to me, which is attached at the back
of this packet.
LRT that
P/s formout when which TAP Dept? ploceted "gency"
Dr I itan indep
Located in Virginia
Independent
agency - used to
be part of AID -
Mey Receive appropriations
from Congress any
12/09/92
17:37
202 647 5341
1.
004
Talking Points
o
We are completely supportive of TDP funding for
environmental clean-up projects in Mexico.
o
As far as we can tell, the two projects of interest to
Morrison Knudtsen -- one in Mexico City and one in Baja,
California -- are on track.
--
TDP is following its own internal guidelines and
regulations for project approval.
o
The Mexico City project should be approved sometime in
January.
O
TPD is reworking the Baja project to account for direct
interest expressed by SEDOSOL Director Collosio.
-- SEDOSOL will likely be tendering directly grants to
compete for building a waste incinerator along the
border, as opposed to specifically in Baja.
The Mexican government has thus far indicated it will wait
until the TDP grants move forward before selecting firms
for the projects.
Any direct intervention by the White House to circumvent
normal TDP operating procedures would be inappropriate.
--
These projects will be approved on their merits, and
by the regulations TDP uses for project approval.
O
Our people at TDA and in Mexico are in close and constant
contact with Morrison Knudtsen representatives,
--
We are told MK is happy with how the projects are
moving along.
MK is also in direct touch with the Mexican government.
--
The Senator might want to check with his own MK contacts
here and in Idaho to see how the view the project approval
process.
12/09/92 17:36
202 647 5341
5
002
December 9, 1992
NOTE TO LINDA TRIPT
SEA
FROM SARAH ALEXANDER
TDA PROJECTS IN MEXICO
Charlene Moldonado, who represents a holding company, has
solicited White House intervention with the Trade and
Development Agency in support of two projects under
consideration for Mexico.
- Her work, she claims, is on behalf of the Idaho firm
Morrison-Knudsten, which has given proposals to TDA
for waste incinerator projects in Mexico City and Baja
California.
,
This is why Sen. Symms (who I think is out of
office in January) is interested. He has met
with Moldonado at least once.
-- (Note: TDA funds feasibility studies for major
projects overseas in the hope that allowing US firms
to get in at the initial stages will generate US
exports.)
O
Moldonado has called every possible relevant office in the
USG - - from EPA to USTR to US Embassy Mexico to State to
the White House ---- soliciting direct intervention.
-- She claims approval now is critical to NAFTA and that
failure to act now risks losing the contracts to
foreign firms.
-- She has claimed, at various times, that Bill Reilly,
Roger Wallace (Commercial Officer in Embassy Mexico),
Sen. Symms and others have expressed commitment to the
projects.
--
She claims TDA director Jose Martinez has the
authority to agree to the projects now, but has been
stalling.
-- She seeks nothing less than White House intervention
to tell TDA "You can do it, so do it."
-- Apparently, she will get a cut of any contracts MK
gets.
I have spoken with at least a half dozen people about the
projects -- from Roger Wallace to Reilly's Chief of Staff
Gordon Binder to TDP Deputy Director Nancy Frame to Gary
Edson.
-- All claim that, from their respective angles, TDA is
doing its job and that Moldonado's claims about the
urgency and appropriateness of immediate approval are
false.
12/09/92
17:37
202 647 5341
003
- 2 -
o
From these conversations, I am convinced that:
(1) TDA is acting correctly in terms of following its own
internal procedures;
(2) EPA and Roger Wallace are satisfied with both the
scope and pace of the projects;
(3) TDA is in close contact with the GOM and understands
the benefits a US (as opposed, for example to a
German) firm getting the contract would be in our
interest.
(4) Approval, disapproval, delay or otherwise would have
no effect on NAFTA, a view with which Gary Edson
agrees.
-- It's hard to imagine in what form we might hear
criticism, except perhaps that we are not
helping Mexico on its environmental programs and
are failing to capitalize on the types of
business activity that closer economic ties with
Mexico has generated.
-- No matter what we do, Mexico will look golden,
since it will go forward with the environmental
projects with another firm.
Furthermore, both TDP and Roger Wallace are in close touch
with Morrison Knudtsen reps here and in Mexico. They tell
me MK people are content with the process and are not in
any way the generating force behind Moldonado's claims.
When you brief RBZ for the phonecall, you might want to
indicate that I inadvertantly spoke to him briefly when I
was trying to reach his staffer (that is, the Senator
grabbed the phone).
--
As you know, the conversation was simply to solicit
what his interest was in the project, since Moldonado
had told us he has interested. (And since we know she
had misrepresented Reilly's interest -- per Gordon
Binder -- we wanted to verify her claims.)
While we are committed to separating the person from the
problem, everyone I have talked to has said she's
misrepresenting her case (and thus MK's credibility as
well.)
-- You ought to encourage Bob not to say anything that
would lend credibility to Moldonado (i.e., that all
her furious phonecalling has actually changed our
policy).
--
If the Senator is interested, he should call MK or TDA
directly to get the real story.
DEC- 9-92 WED 16:59
P.01
Linda
please the replace look
December 9, 1992
FAX TO:
ROBERT ZOELLICK
fox are they but sm
ATTN: LINDA TRIPT
FROM:
SHARLEEN MALDONADO
326-1200
This morning I received a call from our Mexico City office, and from Fernando
Menendez Garza. I would like to share this update with you in case it helps in the
Administration's decision to protect American jobs.
1. Trade Development Agency (formerly TDP) official, Alberto Angulo who
speaks Spanish with a castilian accent and administers the Latin region, was in Mexico
City to officiate in a signing of an alternative fuels TDP for Texas. This had strong
support from Senator Bentsen. Mr. Angulo officially stated that environmental issues
hold no priority with TDA in the evaluation process.
2. Mr. Angulo is totally unaware of the TDP sent by Baja California to Jose
Martinez, and commented that it wasn't even being considered in the pipeline as a
result. He specifically indicated that another TDP was to be awarded for a regional
border evaluation of hazardous waste sites in hopes that U.S. companies might
compete, though nothing is defined or tied to the award. That is not the case with the
specific Baja California request where even financing is in place.
3. Today Mr. Fernando Menendez contacted Minister Jose Luis Bernal at the
Mexican embassy to ask for assistance with TDA. Fernando also promised the Office
of Governor Ruffo of Baja California that he would use his influence with TDA to get
this project funded immediately, if at all possible. If the TDP is not funded promptly,
M-K (the second choice based on TDA blessings) will lose the already financed
project to Spie of France. This can be confirmed with Roger Wallace of the U.S.
Embassy in Mexico City. Mr. Wallace has given his word to the officials of Baja
California that he will personally battle for this in Washington.
4. The request for TDA funds amount to $800,000 and a well-prepared
proposal by M-K's premier group of environmentalists has been submitted. A desk
audit is certainly appropriate. This would allow for immediate funding.
Again, it is apparent that all these efforts to secure what will be the two most visible
hazardous waste abatement efforts within Mexico for a U.S. contractor have not been
made a priority issue. It had been my understanding that NAFTA is very much tied to
perceived efforts by Mexico to meet certain enforcement standards in pollution
abatement, and that the President is very much interested in his legacy and role with
NAFTA. Surely timing is a factor on the environmental initiatives.
DEC- 7-92 MON 17:25
P.01
HOLDING INTERAMERICANA, LTD.
FAX TO:
ROBERT ZOELICK
attn: Linda Tript
FROM:
SHARLEEN MALDONADO
(202) 326-1200
SR. VICE PRESIDENT
DATE:
7DEC92
FYI -- TDP has a senior engineer type going to Mexico City for 3 days on the 5th of
January to evaluate the authenticity of the TDP request. This is so ridiculous. We
have already financed a great portion of the effort in an attempt to secure a U.S.
company, and M-K has certainly done their part. EPA has a Miss Ann Alonso at the
embassy in Mexico City who has spent several years monitoring the progressive steps
being taken to address pollution abatement, and she is intimately aware of the efforts
having an engineering background and a formidable role within the embassy on behalf
of EPA. President Salinas promised President Bush at the Brazil conference that the
steps would be taken on the pollution problems in Mexico City. It is essential to have
both discussed TDPs funded before the 17th. We need some proactive proof of
Mexican effort in pollution controls before the televised/conference signing which will
be linked up at the OAS on the 17th. It is vital to counter early on negative attitudes
toward the environmental impact of NAFTA. This means lead time to prepare media
releases. I am certain that Mr. Baker would agree with Senator Symms and Senator
Dole that such information is vital and that timing on the issuance of such notification
of Mexican efforts to link its pollution abatement to EPA standards will determine the
passage and implementation language of NAFTA. Please advise me if it is necessary
to ask for their assistance to have TDP under the administration of Texan Mr. Jose
Martinez move the projects and fund them immediately. There are no problems, just
unnecessary delays.
728-1648
If it would help to have Minister Jose Luis Bernal in the Mexican Embassy involved,
you already have his number for confirmation as to the priority of these projects. I
thank you for your responsiveness to my calls and to your special attention; it is truly
appreciated.
Sharleen
copy to: Senator Steve Symms
Finance/International Committee
EMERSON #334-501 POLANCO
MEXICO, D.F. CP 11560
tel (525) 545-3356
fax (525) 255-4446
USA tel (714) 348-1015
fax 348-1109
tel (310) 430-6560
fax 431-3630
SENT BY:Xerox Telecopier 7020 11-24-92 ; 6:54PM :
-> West Wing (1st Flr) ;# 2
November 24, 1992
TO:
Linda Tript
Office of the Deputy Chief
of Staff
The White House
FROM:
Sarah Alexander
Office of the Under Secretary
for Economic Affairs
Department of State
RE:
TDP Projects for Mexico -- Status and Evaluation
Following up on our numerous conversations, I am outlining the
steps I have taken to ascertain the status of the two TDP cases
raised by Sharlene Maldonado, of Holding InterAmericana.
Per our discussions, I have tried to 1) find out the status of
the projects and 2) to validate the claims made by Ms.
Maldonado so that if someone decides to approach TDP, we will
have all the facts at our disposal. We agreed that, given the
information we had, we should check three angles: 1) Sen. Symms
2) EPA 3) US Embassy in Mexico City.
Senator Symms
1. On 11/20, per your request, I called the Administrative
Assistant to Sen. Symms (Idaho), since Ms. Maldonado had
told you she had met with Symms on this issue on 11/19.
I told the AA that Ms. Maldonado had expressed to us her
concern about these projects and had noted to us that she
had met with the Senator. I was calling to discern whether
the Senator had any views about this case. The AA told me
she had been out the day the meeting took place, but she
would check and get back to me.
Late on the 20th, I received a phone call from Al Lehn in
Symms' office. I was not in. I returned the phonecall at
around 4pm. He was not in, but as I was leaving a message,
apparently the Senator was standing around and asked to
speak with me.
I spoke with the Senator for about 15 minutes, telling him
at the outset that I had called his office simply in an
attempt to get all the facts regarding this case, and since
Moldanado had noted his support, I wanted to make sure we
knew his views.
The Senator was very candid, saying he did not know the
specifics of the deal, but that he could vouch for Morrison
Knudtsen (MK). He had a good relationship with MK and had
helped in some way (not sure how, except he said he had
made a call to Leonard Malcolm, who I presume is an MK
employee) to link up Moldanado's firm with MK when the
SENT BY:Xerox Telecopier 7020 11-24-92 ; 6:54PM ;
- West Wing (1st Flr) :# 3
I 2 -
former was looking for a firm to bid on the Mexico
projects. He said MK was a very solid, reputable company
that will deliver; they had done some major construction
projects in Idado (something to do with mills). (Note: MK
may be based in Idaho. End Note)
I thanked him for this information, and underscored again
that my call was simply to make sure that we knew all the
facts surrounding this case, since Maldonado had asked for
our assistance. With regard to Maldonado, he said he had
called her earlier that day to say "What the Hell are you
using my name for?
telling people you worked for me?"
(Note: Apparently, the AA had misunderstood my remarks
earlier in the day, because I never mentioned anything
about her claiming to work for the Senator. I told the
Senator it was my understanding that Maldonado had not made
that claim. End Note).
In any event, I then said that, since she had used his
name, that was why we were calling, because she had
mentioned a few others' (e.g., Reilly), who had said they
actually knew nothing of the case. He replied that he
thought Maldonado was well-intentioned, extremely
enthusiastic and slightly emotional, which is why we might
interpret some remarks as exaggerations. She wants to get
the project done, he said, and is very pro-NAFTA, as is the
Senator. She wants this resolved before Christmas for fear
that otherwise personnel changes would cause a delay until
March or April, perhaps to late to seal the contract for MK
or an American firm.
EPA
2) We agreed we should find out whether Reilly had indeed been
directly involved in these projects, as we had been told.
I spoke with Gordon Binder, Reilly's Chief of Staff, who
had checked with Reilly in Europe. Gordon said Reilly was
not aware of these projects and had never done anything
with respect to them. Gordon said he thought he might have
spoken with Maldonado once or twice, and passed her on to a
staff person in EPA's International Affairs Office. The
staff person there is on travel and unreachable for a week,
I am told, and further is the only one at EPA in DC that
knows about the projects. However, Wallace at our embassy
in Mexico City (see below) told me EPA's rep. in Mexico
City is completely supportive.
US Embassy
3) On 11/23 I finally got through to Roger Wallace, our Econ.
Minister in our embassy in Mexico City (he had been
travelling for a week). He was familiar with both
projects, -in particular the Mexico Valley one -- but not
with Sharlene herself. He has been in contact with MK's
environmental services arm in Mexico City and had met with
both Fernando Menendez -- who he said is very serious about
SENT BY:Xerox Telecopier 7020 11-24-92 ; 6:55PM ;
- West Wing (1st Fir) :# 4
- 3 -
the Mexico City project and very politically astute,
meaning he wanted at least partial US involvement in the
project (we are competing with the Germans). Wallace also
had met with Sam Box of MK in Mexico and with Gov. Rufo of
Baja.
He said he thought the Mexico City project was indeed on a
fast track, but that Baja was less so. He said when he had
lunch three weeks ago with Menendez (or one of his staff -
not sure), the latter had expressed concerns that the
Germans were moving faster than the US. Fernando has
talked to TDP Martinez about the project. Only thing
that's holding the GOM back is waiting for a US response.
(Note: German President is in Mexico on a six-day visit
which Wallace believes is essentially to drum up business)
I asked Wallace to check with TDP about where the projects
now stand. He called back later in the day to say he had
spoken with Martinez and TDP Latin America staff. Using
German visit as an excuse for asking where Mexico City
project stands, he found out that either on the 23rd or
24th (i.e., today), TDP would select a team to go to Mex.
City in early December to undertake a pre-feasibility study
(that is, the Definitional Mission that Maldonado
mentioned). That work should be completed by early
January. Martinez expects to award the contract for the
whole Mex. City Project in early January.
Wallace said he would inform GOM of timeframe (with an eye
toward getting them to wait to award the project until TDP
makes a grant.) Wallace said he thought Martinez is very
sympathetic to Mexico projects and was not stalling.
Wallace did not raise Baja project with Martinez, since he
thought it was on a slower track and thought it best to
concentrate on getting info. on Mex. City. He will,
however, look at Baja again.
Notes:
I have still not talked to TDP staff directly. I have the
name of the Latin America officer in charge of this project
should we decide contact at my level is appropriate.
I have also not returned a call from Maldonado from last
Friday. I would like to talk to you before I return it.
(I have spoken to her 4 or 5 times in the past 2 weeks to
tell her that I am working this.)
Finally, I'm not sure how much of this RBZ needs to know.
It seems to me at least the Mexico Valley project is on
track. Perhaps we should discuss.
SENT BY:Xerox Telecopier 7020 11-24-92 6:53PM ;
West Wing (1st Flr) ;# 1
UNCLASSIFIED FACSIMILE COVER SHEET
DEPARTMENT OF STATE
OFFICE OF THE UNDER SECRETARY FOR
ECONOMIC AND AGRICULTURAL AFFAIRS
Number of Pages:
3
11/24/92
Date Sent:
(Excluding Cover Sheet)
Description of Material:
Mexico TDP Cases
TO
:
Linda Tript
Confirmation #:
Office of the Deputy Chief of Staff
FAX Machine #:
456-1121
The White House
ATTN :
Sarah Alexander
647-8854
FROM :
Sender's Phone #:
"B" FAX Machine #: (202) 647-9763
Per our discussions
Remarks:
NOV-15-92 SUN 22:36
P.02
HOLDING INTERAMERICANA, LTD.
FAX TO:
LINDA TRIPT
OFFICE OF THE DEPUTY CHIEF OF STAFF
WHITE HOUSE
FROM:
SHARLEEN MALDONADO
SR. VICE PRESIDENT FOR U.S. GOVT AFFAIRS
their
DATE:
14nov92
CONTACT: (202) 326-1200
Indp.
Enclosed is a VERY brief summary on two separate requests for TDP funds from Mexico.
I hope the print is not too challenging in size, but 1 did attempt to gAt everything on one
page. The bottom line is quite simple: tell the Administrator of TDP to simply do his job
and allow the experts to judge the needs. Obviously the TDP grant request will not cover
all expenses for the two hazardous waste abatement projects in Mexico (Baja California
and The Valley of Mexico). Morrison Knudsen knows this, as do we. The advantage of
TDP funds is the de facto tie to U.S. standards and the ability to counter environmentalists
who oppose NAFTA and the manufacturing community which wants to export.
The politics of the two projects are in place, but the delays at this time as we close in on
the dead space of the holiday season and transition will threaten the timeliness of the
Salinas pollution abatement effort. It will amaze you to note that, MK has had this
opportunity since April of last year. We sought many responses from key American firms,
but MK's Bill Agee was the only one who was at least willing to meet with Fernando
Menendez Garza and explore the possibilities.
I feel confident that a direct call from Chief of Staff Baker to Jose Martinez will result in
immediate activation of TDP assignment of funds.
Jose Martinez requires a strong authority to give him the coourity
to accelerate the projects, something quite allowable in TDP given
its legislated mandate. Funding requests should be accepted per desk audit.
Do not get these projects caught unnecessarily in the Transition
reconsiderations and reprioritization.
Confirm these priorities, if you wish, with either Senator Steve Symms
or Roger Wallace at the U.S. Embassy in Mexico City or Fernando Menendez.
EMERSON #334-501 POLANCO
MEXICO, D.F. CP 11560
tel (525) 545-3356 fax (525) 255-4446
USA tel (714) 348-1015
fax 348-1109
tel (310) 430-6560
fax 431-3630
NOV-15-92 SUN 22:38
P.04
HOLDING INTERAMERICANA, LTD.
11/10/92
SARAH ALEXANDER
STATE DEPARTMENT
OFFICE OF THE UNDERSECRETARY FOR ECONOMIC DEVELOPMENT
tel (202) 647-8854 fax (202) 647-9763
re: Trade & Development Program
Mexico's two requests
Dear Ms. Alexander,
Enclosed for your convenience is a bottom line summary of pollution abatement
activities in Mexico which have been programed by my company to go to Morrison
Knudsen of the United States. The difficulty we had in seeking any "interest" from a U.S.
firm to consider these projects was actually remarkable. However, we finally connected
with Morrison Knudsen but are still almost 8 months into the critical orchestration of
President Salinas' agenda and unable to get these projects through the U.S. bureaucracy.
Please note how the attached summary numbers two immediate projects. The first
grant request to TDP is for a feasibility study which will provide the bid parameters for the
concession. Germany is providing only non-compensated technical assistance, and
Morrison Knudsen is nevertheless fortunate to have been selected to control the feasibility
study via the Trade and Development Program. The Metropolitan Commission of the
Industrial Valley of Mexico is directed by Fernando Menendez who is considered the
Pollution Czar of Mexico. He was appointed by the Regent of Mexico City D.F.,
Commacho Solis, who may well be the next president, and this was done at the behest
of President Salinas. The Commission will allow MK to compete in the bid process, giving
our U.S. company a lead since the bid will be based on U.S. standards. The Metropolitan
Commission was assisted and encouraged to make an application by EPA/Administrator
Reilly who requested funds from TDP specifically for the project from Jose Martinez. We
had hoped to announce this at the tri-national environmental meeting.
EMERSON #334-501 POLANCO
MEXICO, D.F. CP 11560
tel (525) 545-3356 fax (525) 255-4446
USA tel (714) 348-1015
fax 348-1109
tel (310) 430-6560
fax 431-3630
NOV-15-92 SUN 22:38
P.05
The second application to TDP does not involve World Bank funds as it is all
private capitalization. As the merchant banking company for the para-state corporation
which will award the concession, we secured MK for complete sole-sourcing contingent
on TDP funds, which lend a sort of security that EPA policies will be followed. This is
good for public relations which are somewhat threatened by critics of border
environmental abuses. Any delays will cause grave impact on the California support of
NAFTA, and may well mean Mitsubishi would step in. The hazardous waste abatement
and co-generation efforts are fundamental to Mexico's development; Southern California
medical waste, for example, in San Diego County is now a bilateral issue.
It is anticipated the concession will mean over $250 million in export financing for
MK and its suppliers.
MK presence in the marketplace would anchor U.S. standards and provide a
marketing leverage for future projects with the growing Baja economy. This type of
presence is essential given the explosive trade from the Pacific Rim and interest in both
the maquiladoras and the expanding consumer market of Mexico.
These pages should well suffice for dealing with TDP. The bottom line is simply
to accelerate funding of the two projects for Mexico. They are crucial. We need
immediate assistance from the Chief of Staff, Jim Baker. And for that reason we had
begun our plea for assistance with Margaret Tutwieler and Robert Zoellick.
While we recognize that TDP is a separate agency established to improve the
export position of the United States with grants to leverage U.S. companies where
prioritized, it has been by policy primarily involved in massive infrastructure. The
projected formulas for measuring impact are easier to manage and present to congress.
These two infrastructure projects are of a nature which are acceptable to TDP and should
be addressed. They represent an opportunity for fair attention to Mexico at this critical
time in its economic transition.
Our office has advised the Embassy of Mexico of the two requests. The Embassy
must be informed of our direct request for assistance with TDP, so that all interest areas
are balanced. Therefore, please contact me directly here in D.C. (326-1200) when a
decision has been reached for a recommendation to the White House Chief of Staff. I am
not certain how your office could bureaucratically intervene with TDP, except, possibly,
with oversight. We have already sought assistance from the Minister of Commercial
Affairs at the U.S. Embassy in Mexico, Mr. Roger Wallace, who would confirm from your
policy perspective the critical nature of these two TDP requests from Mexico.
Meanwhile, thank you very much,
Sharleen Maldonado
Sharleen Maldonado
VP - U.S. GOVT AFFAIRS
NOV-15-92 NOV SUN 22:37
P.03
CONFIDENTIAL & URGENT
TDP ACTION REQUIRED FOR U.S. CONTRACTS IN MEXICO
U.S. TRADE & DEVELOPMENT PROGRAM - TDP
1621 N Kent Street
Rosslyn
703: 875-4357
TDP is an Independent agency directly funded out of Foreign Operations to push U.S. exports, particularly
manufactured products. The Director of the TDP office, Mr. Jose Martinez who was formerly with White
House Personnel and previously with Senator Tower's legislative staff, chose to pace TDP requests from
Mexico regarding pollution abatement and contract awards to U.S. corporations. This caused a leverage
fallure for President Bush in countering NAFTA environmental critics, and, now, Is causing a time-delay that
will undermine the sensitive timetable for President Salinas in dealing with environmental projects which
require no funds from the U.S. as they are, for the most part, privately financed.
PROJECT DESCRIPTIONS:
(1) Valle de Mexico -- the Metropolitan Commission for the Industrial Valley of Mexico Is under the direction
of Fernando Menendez Garza and constitutes the largest hazardous waste abatement project in the history
of the world. Morrison Knudsen was requested to do a TDP study for establishing U.S. standards, and
Mexico was encouraged by Wm. Rellly to pursue TDP funds this past summer, and Mexico proceeded. It
will Involve $1+ billion over a 20 year period for the installation and concession management opportunity
of 3 generator sites. There are both World Bank (not essential) and private capital from Grupo Penoles.
Mr. Martinez with his executive staff decided in September to do a "definitional mission" by advertising in
CBD for a qualified consultant to evaluate Mexico's proposal/costs as prepared in cooperation with Morrison
Knudsen, the largest hazardous waste contractor for the Corps of Engineers, no less. This can be reversed
to allow for 8 desk audit, or, If preferred, accelerated for FULL award prior to the second week of
December. Financing allows for sole-sourcing or a short list to Include MK.
(2) Baja California - at the written request of Governor Ruffo of Baja, Morrison Knudsen has been Identified
for specific sole-sourcing of a $250+ million hazardous waste generator site, to be set aside by the federal
government. The concession is totally privately financed and will be awarded to this U.S. company based
on TDP feasibility/planning grant award.
The letter from Baja's governor was held back based on counsel from TDP regarding Mr. Martinez schedule.
The letter from Baja has since been carried by Roger Wallace at the U.S. Embassy to TDP the week of the
election. Under the regulations, there is no conflict In making a sole-source award of a TDP without a
definitional mission. This must be awarded ASAP and no later than 1Dec92 to allow for strategic pro-
NAFTA campaign in California by the Business Roundtable, etc.
ACTION: TDP can legitimately award both TDPs without a definitional mission, by simply doing a desk audit.
This can take less than two weeks. There were $40 million awarded by Foreign Operations subcommittee
to TDP. It Is imperative that this discretionary advantage to award TDP grants be taken.
PRESIDENT SALINAS FACES PRESSURE FROM ABROAD AND DOMESTICALLY TO MEET HIS TIME-TABLE WHICH HE HIMSELF
HAS SET WITH HIS OWN PRESIDENTIAL MANDATES. Morrison Knudsen, based in Idaho, has sought contracts with Mexico for two
years unsuccessfully: their entry into Mexico sends a powerful signal to U.S. manufacturers. Holding InterAmericana Ltd. (HIL) has
spent thousands of dollars In paving the way for a U.S. company, securing private investment, and guiding the TDP approach to
anchor MK and, thereby, U.S. standards and business opportunity.
SENT BY:Xerox Telecopier 7020 11-10-92 ; 5:32PM ;
- west wing (ist Fir) .# s
11/10/92
NOTE TO COZETTA
FROM MIKE YOUNG
my
RE: CLOSING THE LOOP ON CHARLENE MALDENADO (Sp?)
ShaRleen MAldonAdo
o
We actually closed this loop more than two weeks ago, but
I'm just getting a chance to let you know what transpired.
o
Sarah spoke with Charlene, saying she was calling on behalf
of RBZ's office, since he was extremely busy and wanted to
make sure her concerns were conveyed.
o
She seemed appreciative and understanding - not at all
upset that Sarah was returning the call.
She said she was trying to draw RBZ's (and Janet Mullins')
attention to a Trade and Development Program (TDP) project
to finance US firms to undertake studies of projects to
clean up Mexico's environment.
-- She said her firm -- Inter Americana, a merchant
banking company - was representing the US firms and
that the TDP director was holding up approval of the
project at this "politically" crucial time.
-- She clearly wanted intervention by RBZ.
Sarah told her that she was not in a position to make
political judgment calls and certainly would not want to be
in the position of politicizing trade issues.
-- However, she told Charlene she would be happy to look
in more detail at what TDP was doing with respect to
this contract to see if it was playing by the rules.
-- Charlene said that would be fine and she would send
over some information.
o
FYI, Sarah said Charlene was throwing names around as if
she knew everyone (RBZ, Janet, and Carla Hills -- for whom
she said she had worked as a special assistant) and was
talking alot about how powerful she is.
-- After the call, Sarah checked with Michael Brownrigg,
who told her that when he had been at USTR, she had
also called him looking for help on TDP problems.
SENT BY:Xerox Telecopier 7020 11-10-92 ; 5:32PM ;
- west wing (ist Fir) .# 4
-2-
-- He said he had investigated Charlene's claims, and TDP
told him that they knew exactly who she was and what
her "problems" were about
-- He also said Charlene's only contact with Amb. Hills
had been as a low level employee at HUD when Hills was
Secretary.
o
In sum, I think she is pretending to be the political
insider she is not.
-- She actually called again today to tell us that she
would be sending the information pronto, and that this
issue could undermine NAFTA, that Salinas personally
is angry, and that today is Sherman Funk's birthday.
- We will follow up, of course, in a manner that is
professional and unbiased. (And I will get a present
for Sherman from all of us....)
THE WHITE HOUSE
WASHINGTON
December 11, 1992
MEMORANDUM FOR BOB ZOELLICK
THROUGH:
HENSON MOORE With
FROM:
CLIFF ALDERMAN GA
SUBJECT:
DISASTER DECLARATION REQUEST FROM MEMBERS OF THE
NEW JERSEY GENERAL ASSEMBLY
Attached is a letter signed by several Republican members of the
New Jersey General Assembly.
They have requested that FEMA's investigation of the damage
caused by the current storm in New Jersey be expedited as soon as
possible to ascertain whether federal disaster aid can be
provided.
While we understand that any such request must be initiated by
Governor Florio, we thought you should be aware of this request
Please note they have already cc'd Wallace Stickney on this
request.
12/14
To Ph.1 Brady
Beb Grady
FyI
RBZocth.ru
THE CREAT MIX THE of THE AMERICA
GENERAL ASSEMBLY OF NEW JERSEY
GARABED "CHUCK" HAYTAIAN
MAJORITY OFFICE
DONALD Sico
SPEAKER
STATE HOUSE
EXECUTIVE DIRECTOR
CN-098
TRENTON, NEW JERSEY 08625-0098
(609) 292-5339
December 11, 1992
The Honorable George Bush
President of the United States
The White House
1600 Pennsylvania Avenue
Washington, D.C. 20050
Dear Mr. President:
Representing districts along the New Jersey
shore, we are seriously concerned about the damage to
the coast that has taken place during the last several
hours due to a severe storm still in progress as we
write. Flooding is extensive, thus making it
difficult to assess the damages at this point, but
several towns have been evacuated, and reports of
beach and home destruction are prevalent. It appears
that this storm may be more destructive than the
October 1991 and the January 1992 storms that struck
our coast.
We are writing to request your assistance in
activating the Federal Emergency Management Agency's
(FEMA) investigation of the damage as soon as possible
to ascertain whether federal disaster aid can be
provided. As you know the prior two storms seriously
damaged our coast; the coastal towns cannot afford
further devastation. Tourism represents one of the
most significant aspects of our economy, already in
troubled waters. The integrity of our coast is also
of paramount importance for environmental reasons.
Printed on Recycled Paper
FEMA Request, Page 2
We thank you in advance for your capable
assistance in this most important matter and stand
ready to be of whatever assistance we can in
effectuating a speedy and successful resolution of
this unfortunate situation.
Sincerely,
John Sibson
Frank Lobiondo
John C. Gibson
District 1
District 1
John District John F. first Gaffney 2 Gaffrey
Fredrick Nickles
District 2
Jack Collins
May Stuhttrager
Jack Collins
Gary W. Stuhltrager
District 3
District 3
Chu Conno
Jeffrey Moran
Christopher J. Connors
Jeffrey W. Moran
District 9
District 9
Giang District Vargimia 10 "Ginny" Haines
Parid Walfe
Haines
David E. Wolfe
District 10
Steve Corodemes
Tom Smith
Steve Corodemus
Tom Smith
District 11
District 11
Joe District Joseph annolina Azzolina 13
900mm Joann H. Smith Admith
District 13
CC: Wallace Stickney, Director
Federal Emergency Management Agency
Federal Center Plaza
500 C. Street S.W.
Washington, D.C. 20472