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470416512
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Wednesday, November 29, 1989
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470416512
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title
Wednesday, November 29, 1989
citationUrl
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90527-014
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George H. W. Bush Papers
Presidential Daily Files
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1989
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Originally Processed With FOIA(s):
foia Number:
2009-0166-S
2009-0166-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:
Office of the President
Series:
Daily Files
Subseries:
OA/ID Number:
90527
Folder ID Number:
90527-014
Folder Title:
Wednesday, November 29, 1989
Stack:
Row:
Section:
Shelf:
Position:
V
12
11
4
7
Withdrawal/Redaction Sheet
(George Bush Library)
Doc. No. / Type
Subject/Title
Date
Restriction
Classification
01. Schedule
Schedule of the President [redaction] (1 pp.)
11/29/89
(b)(3)
02a. Log
White House Telephone Log [President Bush] [redaction of
11/29/89
(b)(6)
personal information] (2 pp.)
02b. Log
White House Telephone Log [Signal Switchboard] [redaction of
11/29/89
(b)(6)
personal information] (1 pp.)
03. Note
Handwritten notes of Presidential Phone call with Jack Brooks Re:
11/29/89
(b)(6)
various issues [redaction of personal information] (1 pp.)
04. Note
Handwritten notes of Presidential Phone call with JAB [James A.
11/29/89
(b)(1)
Baker, III] Re: Mitterand (1 pp.)
05. Note
Handwritten notes of Presidential Phone call with JAB [James A.
11/29/89
(b)(1)
Baker, III] Re: various issues (2 pp.)
06a. Note
Handwritten notes of Presidential Phone call with President Roh
11/29/89
(b)(1)
Re; meeting (1 pp.)
06b. Memo
From Brent Scowcroft to President Bush Re: Telephone Call from
11/29/89
(b)(1)
President Roh Tae Woo of Korea (1 pp.)
06c. Talking Points Points to be made for Telephone Conversation with South Korean
n.d.
(b)(1)
President Roh Tae Woo (2 pp.)
Page 1 of 1
Collection:
Record Group:
Bush Presidential Records
Office:
Office of the President
Series:
Daily Files
Subseries:
WHORM Cat.:
File Location:
Wednesday, November 29, 1989
Pinksheet Number:
dw1522
OA/ID Number:
90527-014
Date Closed:
10/27/2009
FOIA/Sys Case #:
2009-0166-S
Re-review Case #:
P-2/P-5 Review Case #:
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
01. Schedule
Schedule of the President [redaction] (1 pp.)
11/29/89
(b)(3)
Collection:
Record Group:
Bush Presidential Records
Office:
Office of the President
Series:
Daily Files
Subseries:
WHORM Cat.:
File Location:
Wednesday, November 29, 1989
Date Closed:
10/27/2009
OA/ID Number:
90527-014
FOIA/SYS Case #:
2009-0166-S
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
PRM. Removed as a personal record misfile.
SCHEDULE OF THE PRESIDENT
Wednesday, November 29, 1989
8:00 am
Intelligence Briefing
Oval Office
(15 min)
(Scowcroft/Sununu)
8:15 am
National Security Briefing
Oval Office
(30 min)
(Scowcroft)
8:45 am
Meeting with Governor Sununu
Oval Office
(30 min)
9:15 am
Administrative Time
Oval Office
(30 min)
9:45 am
Personal Staff Time
Oval Office
(75 min)
11:00 am
Media Interview
Oval Office
(20 min)
(Fitzwater)
(TAB A)
11:20 am
Personal Staff Time
Oval Office
(40 min)
12:00 pm
Lunch
Oval Office
(75 min)
Photocopy from George Bush Presidential Library
1:15 pm
Personal Staff Time
Oval Office
(15 min)
1:30 pm
Meeting with Secretary Baker
Oval Office
(30 min)
2:00 pm
Personal Staff Time
Oval Office
(60 min)
3:00 pm
Administrative Time
Oval Office
(30 min)
3:30 pm
Meeting with Governor Sununu
Oval Office
(30 min)
4:00 pm
Trip Briefing
Oval Office
(60 min)
(Scowcroft) (Distributed Separately)
7:10 anoval 7:20 add cicconi 7:32 Cicconi out
8:02add Dates scoweroft
(b)(3)
suncer, DCI
UNP 11/28/89
8:12 Dates out 8:15 add Gates 8:25 add V.P. 8:28 DCI
(b)(3)
6:00 pm
ret
9:43 Dates + scower oft out; add Darman 10:42 Darman + Sununer out
10:43 add sunsin Fitzwater in ; V.P. ant 10:52 Fitywater out
10:56 add Fitzwater Gates T Scower oft 11:01 suveness out
6:00 pm
Private Dinner
Residence
(Firestone)
11:03 add survice 11:03 and Fetywate out 11:04 add Fitywate +
5 reporters
11:06 sumeen ant 11:08 add Aununer - out 11:20 add susurve
11:33 Sununu out 11:35 all ant except Mashch, seile+ McNulty
11:37 all out 11:39 7 itywaterin 11:40 Fitywater ant 11:53 Poters to Cabona
(12:30 mrs. Busharr) 12:36 Poters an Oval from Cabana 12:36 mrs. Bunk
hancy Reyn olds +
12:38 Poter, mrs. Buch, Fuller + Reynolds to WH mess for lunch
Chang Fuller to Oval
1:37 dpt WH mess 1:39 an Oval 1:40 add Baher + Acowcraft 1:47 old susurer
2:29 Baber+ scoweroft out 2:54 Aunune out 3:04 add Rogich
3:29 Rogich out 3:35 add Sceneener 3:47 add Brady ; sunuau out
3:50 summer into Oval 4:00 suncence + Brady out 4:01 add Baher
4:04 add VP, suncener, Wm. Barr, B. Gray, Darman, Dates, scowcroft
4:05 add Mc Clure 4:49 all out 4:50 sumeen bach in
4:53 sunrence out 4:56 add cicconi 4:56 Cicconi out
5:09 add scoweroft 5:29 Fitzwater in 5:35 Fitzwater + scowcroft out
5:54 (approx) Poter dpt Oval to Dip Run - an Dip Rm 6:00 (approx) P.M. mulsoney it al
annue. Potes greats
6:05- 6:50 mtg in yellow Oval Rm 6:50-8:35 aprox Dinner/inity
8:40 Dpt 2nd 7h Res. n/ mulroney 8:44 to Slawn w/ mulsoney - forewell
8:46 Potus, Bahu, Dates scowcroft meet on Grd 7h Res. corridor
8:50 all move to med. Unit-mitg.
8:
Potus to 2nd 7 likes.
UNP 11/28/89
6:00 pm
0
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
02a. Log
White House Telephone Log [President Bush] [redaction of
11/29/89
(b)(6)
personal information] (2 pp.)
Collection:
Record Group:
Bush Presidential Records
Office:
Office of the President
Series:
Daily Files
Subseries:
WHORM Cat.:
File Location:
Wednesday, November 29, 1989
Date Closed:
10/27/2009
OA/ID Number:
90527-014
FOIA/SYS Case #:
2009-0166-S
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
PRM Removed as a personal record misfile
THE WHITE HOUSE
WASHINGTON
TELEPHONE MEMORANDUM
NOVEMBER 29
1989
PRESIDENT BUSH
TIME
NAME
ACTION
PLACED
DISC
OUT
7:16
AM
7:28
CONGRESSMAN JACK BROOKS
BETHESDA NAVAL HOSPITAL
BETHESDA, MD.
INC
RM
TLKD-OK 7:23AM
OUT
AM
295-2943
INC
PM
KIUT
7:21
AM
7:22
MRS. BARBA BUSH
RES: WASHINGTON, D.C.
WHITE HOUSE ADMIN EXT. 551
TLKD-OK
INC
PM
OUT
AM
INC
PM
OUT
7:32
AM
7:35
MS. LAURIE FIRESTONE
(b)(6)
INC
RM
TLKD-OK.
Photocopy from George Bush Presidential Library
OUT
AM
INC
PM
CUT
7:38 AM
7:41
SECRETARY JAMES BAKER
(b)(6)
VV
INC
PM
TLKD-OK
OUT
AM
INC
PM
OUT
7:42 AM
SENATOR DAVID BOREN
O/C LW
TOLD PATTY PRESOCK
(b)(6)
PRESUS CA 7:55 AM
INC.
PM
OUT
AM
INC
PM
OUT
AM
INC
PM
THE WHITE HOUSE
WASHINGTON
TELEPHONE MEMORANDUM
NOVEMBER 29
89
PRESIDENT BUSH
, 19
TIME
NAME
ACTION
PLACED
DISC
OUT
7:46 AM
SENATOR RICHARD LUGAR
IN GENEVA, SWITSERLAND
OFC: WASHINGTON, D.C.
OFC W/C WITH #
224-4814
TOLD PATTY PRESOCK
INC
RM
OUT
AM
PRESUS CA 7:55AM
INC
PM
OUT
8:38
AM
11:01
SECRETARY JAMES A. BAKER
ON PHONE TLKD TO
OFC: WASHINGTON, D.C.
PATTY PRESOCK;
INC
RM
WHITE HOUSE ADMIN EXT. 420
TLKD-OK 10:53AM
OUT
AM
INC
PM
OUT
9:47 AM
9:53
SECRETARY NICHOLAS BRADY
OFC: WASHINGTON, D.C.
WHITE HOUSE ADMIN EXT. 422
TLKD-OK 9:49AM
HXX
PM
OUT
AM
INC
PM
OUT
11:47
AM
11:49
MRS. BARBARA BUSH
RES: WASHINGTON, D.C.
ING
RM
WHITE HOUSE ADMIN EXT. 532
TLKD-OK
OUT
AM
INC
PM
OUT
AM
INC
PM
OUR
AM
MRS. PATTY PRESOCK
OFC: WASHINGTON, D.C.
WHITE HOUSE ADMIN EXT. 620
TLKD-OK
INC
12:27 PM
12:28
OUT
AM
INC
PM
THE WHITE HOUSE
WASHINGTON
TELEPHONE MEMORANDUM
NOVEMBER 29
, 1989
PRESIDENT BUSH
TIME
NAME
ACTION
PLACED
DISC
our
AM
MR. JERRY WEINTRAUB
PRESUS NOT AVAILABLE
OFC: LOS ANGELES, CA.
TLKD TO BRIDGET
213-312-1301
MONTAGNE
INC
12:52 PM
OUT
AM
INC
PM
OUT
AM
MRS. PATTY PRESOCK
OFC: WASHINGTON, D.C.
WHITE HOUSE ADMIN EXT. 500
TLKD-OK
INC
1:21 PM
1:21
OUT
AM
INC
PM
OUT
AM
MR. FREDERICK D. McCLURE
OFC: WASHINGTON, D.C.
WHITE HOUSE ADMIN EXT. 609
TLKD-OK
INC.
2:51 PM
2:51
Photocopy from George Bush Presidential Library
OUT
AM
INC
PM
OUT
AM
SECRETARY JAMES BAKER
OFC: WASHINGTON, D.C.
WHITE HOUSE ADMIN EXT. 420
TLKD-OK
INC
3:20 PM
3:22
OUT
AM
INC
PM
XXX
AM
MR. JEB BUSH
IN MEETING
PRESUS RETURNED CALL
(b)(6)
9:09PM; NOISE ON LINE
INC
6:18 PM
9:16
REDIAL # 9.13PM
OUT
AM
INC
PM
OUT
AM
INC
PM
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
02b. Log
White House Telephone Log [Signal Switchboard] [redaction
11/29/89
(b)(6)
of personal information] (1 pp.)
Collection:
Record Group:
Bush Presidential Records
Office:
Office of the President
Series:
Daily Files
Subseries:
WHORM Cat.:
File Location:
Wednesday, November 29, 1989
Date Closed:
10/27/2009
OA/ID Number:
90527-014
FOIA/SYS Case #:
2009-0166-S
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
PRM. Removed as a personal record misfile.
THE WHITE HOUSE
WASHINGTON
TELEPHONE MEMORANDUM
SIGNAL SWITCHBOARD
November 29 , 19.89
TIME
NAME
ACTION
PLACED
DISC
OUT
8:19 AM
9:03
Conference Call:
Tlkd-ok
Chancellor Helmut Kohl
8:27 AM
INC
PM
(b)(6)
OUT
AM
Mr. Corneilius F. O'Leary
White House Situation Room
INC
PM
White House Signal 2-2262
OUT
AM
Mr. Robert L. Hutchings
White House Situation Room
INC
PM
White House Signal 2-2262
OUT
AM
Ms. Perry Notboon
(b)(6)
INC
PM
OUT
AM
Conference Call:
Tlkd-ok
President Tae Woo Rah
5:09 PM
Claridge Hotel, London, England
INC
5:07 PM
5:18
499-2550
OUT
AM
Mr. Karl D. Jackson
Photocopy from George Bush Presidential Library
White House Situation Room
INC
PM
White House Signal 2-2262
OUT
AM
Mr. Tong Kim
White House Situation Room
INC
PM
White House Signal 2-2262
our
AM
Mr. Prescott Bush
WCL
9:11 PM
(b)(6)
Tlkd-ok
INC
9:10 PM
9:27
9:20 PM
OUT
AM
General Brent Scowcroft
Tlkd-ok
Office, Washington, D.C.
9:14 PM
INC
9:14 PM
9:16
White House Signal 2-2260
OUT
AM
INC
PM
OUT
AM
INC
PM
PRESIDENTIAL MOVEMENTS
LOCATION Washington, D.C.
DATE 29 November 1989
TIME
MOVEMENTS
0710
South Grounds
0711
Oval Office
1154
South Grounds
1237
Oval Office
1241
Staff Mess
1341
Oval Office
1755
South Grounds
1759
Residence
2045
South Grounds
2046
Residence
WHCA FORM 15, OCTOBER 15, 1980
News Summary
OFFICE OF THE PRESS SECRETARY
THE WHITE HOUSE
WASHINGTON
WEDNESDAY, NOVEMBER 29, 1989 -- 6 a.m. EST EDITION
TODAY'S HEADLINES
INTERNATIONAL NEWS
Bush Plays Down Hope Of Troop-Cut Deal At Malta -- President Bush
sought Tuesday to dampen what he termed "hyped speculation" about a
possible agreement at this weekend's meeting off Malta with Soviet
President Gorbachev but refused to rule out talks about deepened troop
cuts in Europe.
(Dallas Morning News, New York Daily News,
New York Times, USA Today, Washington Post, Copley, Reuter)
Gandhi Resigns As Indian Prime Minister -- Indian Prime Minister Rajiv
Gandhi resigned Wednesday after his Congress party lost its parliamentary
majority in elections, the Press Trust of India reported.
(Reuter)
NATIONAL NEWS
Fiscal 1991 Budget Drafts For Congress Seek To Curb Medicare Doctor
Payments -- Drafts of the fiscal 1991 budget that President Bush will send
Congress in January include measures to slow the rise in doctors'
payments under Medicare.
(Wall Street Journal)
NETWORK NEWS (Tuesday evening)
CZECHOSLOVAKIA The Communist Party
conceded it can no longer claim
INTERNATIONAL
A-1
constitutional control of
Czechoslovakia.
NATIONAL NEWS A-11
MALTA MEETING - President Bush
NETWORK NEWS
B-1
protested what he called hyped
speculation that his conference with
EDITORIALS
C-1
Gorbachev would produce an arms deal.
FOREIGN MEDIA
C-2
GERMAN REUNIFICATION Chancellor
Kohl outlined what he regards as a
plan to realize the goal of German
reunification in the future.
This Summary is prepared Monday through Friday by the White House News Summary Staff.
For complete stories or information, please call 456-2950.
INTERNATIONAL NEWS
PRESIDENT SAYS NOT TO EXPECT ANY 'SURPRISE' FROM SUMMIT
President Bush, assuming the role of spin control commander-in-chief,
summoned reporters to the Oval Office Tuesday to "gun down" reports that
arms control agreements may be reached between him and Soviet President
Gorbachev when they meet this weekend off Malta.
Complaining of "all kind of hyped speculation" that he might propose
new reductions in troop strength in Europe during the summit, Bush said
he has told Gorbachev "in my own handwriting, so he knows it's me and
not the bureaucracy, that this is not a summit for arms control
agreements."
"So the surprise will be, if you're looking for a surprise, there won't
be a surprise. That may come as a surprise," the President said.
(Ann Devroy, Washington Post, A1)
Bush Plays Down Hope Of Troop-Cut Deal At Malta
President Bush sought Tuesday to dampen what he termed "hyped
speculation" about a possible agreement at this weekend's meeting off Malta
with Soviet President Gorbachev but refused to rule out talks about
deepened troop cuts in Europe.
"I'm willing to talk about everything," Bush said to reporters in the
Oval Office. "But it is not going to be an agreement that surprises our
allies.
"So the surprise will be, if you're looking for a surprise, there won't
be any surprise. That may come as a surprise."
The President's comments appeared designed to counter Monday's
White House acknowledgement that Bush would be prepared to discuss
"ideas" with Gorbachev that went beyond the proposals for troop cuts he
made last spring and to take any Soviet proposals to other NATO leaders
Monday in Brussels.
(Carl Leubsdorf, Dallas Morning News)
Bush, Remembering Reykjavik, Says No Surprises In Malta
President Bush, out to reassure allies fearing a repeat of Ronald
Reagan's near-giveaway of the Western nuclear arsenal at the 1986
Reykjavik summit, has vowed to avoid surprises at his Malta meeting with
Soviet leader Gorbachev.
"I'm not going to go off and prematurely jump out there and try to
grandstand by committing them (the NATO allies) to something. That's
not how you keep an alliance strong, nor is that the way you effect
permanent changes," Bush said Tuesday at an impromptu news conference
in the Oval Office.
"The surprise will be -- if you're looking for a surprise -- there
won't be a surprise," he added as he railed against "euphoric expectations
of some deal.'
Mindful of bitter allied complaints about Reykjavik, where Reagan
nearly agreed to eliminate nuclear arms without consulting other Western
leaders, Bush noted that he has spoken to every NATO leader about the
two-day summit that begins Saturday.
(Michael Gelb, Reuter)
-more-
Wednesday, November 29, 1989 -- A-2
Bush Objects To "Hype" Of Summit; Promises No Surprises
President Bush, complaining of "hyped speculation," sought Tuesday
to "gun down" expectations for this week's superpower summit, saying he
will strike no agreements with Soviet President Gorbachev in Malta and
spring no surprises on American allies.
Alarmed that White House statements Monday had raised the stakes for
the Malta meeting, the President summoned a small group of reporters to
the Oval Office to take aim at "this kind of frantic speculation."
Calling it "crazy," he said, "It's natural. But I want to gun it
down."
Pointing to the phone on his desk, Bush said he has now conversed
with the leaders of all 15 NATO allies to lay the groundwork for Malta and
to assure them he is not going to the Mediterranean summit to unilaterally
alter the American commitment to Europe.
"It is very important that they know that I am not going to go off
and prematurely jump out there and try to grandstand by committing them
to something," he said.
(George Condon, Copley)
Dr. Bush's Iodine For Arms Cuts
Complaining about the "hyped speculation" surrounding his first
summit, President Bush Tuesday ruled out any chance of an arms-control
deal at his Malta meeting with Soviet leader Gorbachev.
"I have made clear to Mr. Gorbachev in my own handwriting -- so he
knows it comes from me, not from the bureaucracy -- that this is not a
summit for arms-control agreement," Bush told reporters who had been
summoned to the Oval Office.
Bush said he wanted to shoot down any "euphoric expectation of some
deal. There isn't going to be such a deal.'
The time for arms negotiations is at the full-dress summit scheduled
for next spring or summer, he said.
The President stressed that he is willing to talk about anything
during the talks aboard warships that begin Saturday off Malta. But he
said he won't "tie the (NATO) alliance up by unilateral commitments."
(Maureen Santini, New York Daily News, A15)
Bush: No Troop Deal At Summit
President Bush -- hoping to "gun down" talk of a superpower pact to
withdraw troops from Europe -- Tuesday nixed "euphoric expectations of
some deal."
Bush called reporters into the Oval Office to say he has written
Soviet President Gorbachev -- "in my own handwriting, so he knows it
comes from me, not from the bureaucracy" -- that he will not sign an arms
deal at Malta when the two leaders meet this weekend.
"There isn't going to be such a deal," Bush said, voice rising. "It
takes two to make a deal."
The reason: Bush told NATO allies he'd take no action at Malta before
consulting them.
"It is very important that they know that I'm not going to go off and
prematurely jump out there and try to grandstand by committing them to
something," he said. "That's not the way you keep an alliance strong,
nor is that the way you affect permanent change."
(Johanna Neuman, USA Today, A4)
-more-
Wednesday, November 29, 1989 -- A-3
Bush Pledges 'No Surprises' At Malta On Cutting Troops
President Bush declared Tuesday that he does not intend to strike a
deal that would sharply reduce troop levels in Europe when he meets this
weekend with Mikhail Gorbachev.
But Bush told reporters in a brief question-and-answer session in the
Oval Office that he was eager "to talk in a general way with the
Soviet-leaders about our aspirations for how a defense system will look 10
years from now. "
In his comments, Bush also appeared to be sending a message to the
Western allies that there would be "no surprises" from the Malta meeting.
(Stephen Engelberg, New York Times, A16)
BUSH TO HIT SOVIETS ON 'FEEDING CASTRO'
President Bush, denying that he will formally agree at the Malta
summit to cut U.S. and Soviet troop levels in Europe, tried anew Tuesday
to switch attention to Mikhail Gorbachev's failure to stop the flow of Soviet
weapons into Central America.
During an impromptu 10-minute news conference in the Oval Office,
the President left open the door to arms talks that do not reach the treaty
stage. But Bush said that, contrary to news reports, he would nor
propose slashing troop levels in Europe below the 275,000 he proposed in
May.
"There is all kinds of hyped speculation on the part of some that it's
going to be different,' Bush said.
"I will be urging Mr. Gorbachev to do what they should have done
some time ago, cease support for those who are fueling revolution,
exporting it in this hemisphere," he said, standing behind a desk littered
with white briefing books in preparation for the summit meeting aboard
warships anchored off Malta.
(Frank Murray, Washington Times, A1)
SOVIET NAVAL ARMS CONTROL INITIATIVE SAID POSSIBLE AT MALTA
Soviet President Gorbachev may propose a naval arms control
initiative at his summit with President Bush but the U.S. remains firmly
opposed to such negotiations, the State Department said Tuesday.
In the past, "we have opposed Soviet proposals for naval arms
control, because they would hamper our ability to honor our commitments
to allies and carry out our global responsibility
(and) the policy hasn't
changed," spokeswoman Tutwiler said.
She said the U.S. has "observed changes in Soviet naval deployments
worldwide for quite some time" prompted in part by operational problems
and resource constraints.
(Carol Giacomo, Reuter)
-more-
Wednesday, November 29, 1989 -- A-4
GORBACHEV TO SEEK U.S. ASSURANCES
ON EASTERN EUROPE, IMPROVED TRADE
MOSCOW -- Mikhail Gorbachev wants assurances from President Bush
this weekend that the U.S. will not exploit the Eastern European reform
movement, say government officials who add the Soviet leader hopes for
improved trade ties from the superpower summit.
Gorbachev also will be seeking progress on an array of arms control
issues as he and Bush hold their first summit Saturday and Sunday on
U.S. and Soviet warships in the waters off Malta.
"To put it in a nutshell, we need a normal external environment for
our domestic work," says Gorbachev, whose economic restructuring
program of perestroika has yet to produce measurable improvements in the
daily life of Soviet citizens.
(John-Thor Dahlburg, AP)
EAST GERMANY WISHES BUSH WELL AT MALTA SUMMIT
East Germany's communist government has sent President Bush a
message wishing him a successful summit in Malta with Soviet President
Gorbachev, the State Department said Tuesday.
The message was delivered by East Germany's ambassador to the
U.S., Gerhard Herder, in a short meeting Tuesday with Deputy Secretary
of State Eagleburger, spokeswoman Tutwiler said.
"And without characterizing their meeting or the message, it was
basically to wish the two leaders, or to wish President Bush a successful
meeting in Malta," she told reporters. "And we understand that a similar
message was sent to President Gorbachev," she added.
(Reuter)
BUSH HEADS FOR SUMMIT WITHOUT LONG-TERM MILITARY STRATEGY
President Bush, responding to growing public and budgetary
pressure, has agreed to discuss with Soviet President Gorbachev at the
upcoming summit a possible disengagement of military forces in Europe
even though the idea hasn't been throughly studied by U.S. strategic
planners.
The summit comes amid the crumbling of long-held assumptions by
U.S. and Soviet military planners about how a European war would be
fought and thus how a conflict there can be averted and a stable peace
maintained amid revolutionary change.
With the U.S. heading into a suddenly critical summit without a clear,
long-term plan, some senior U.S. analysts are concerned that the summit
outcome could dash hopes for an orderly disengagement of military forces
on that continent.
Instead, they fear the U.S. could miss historic opportunities, or
could reach informal understandings with the Soviet Union that would
inadvertently create new incentives for confrontation and exacerbate
growing tensions among the Western allies.
(David Wood, Newhouse)
-more-
Wednesday, November 29, 1989 -- A-5
MASSIVE U.S. TROOP CUTS IN EUROPE PLANNED
BRUSSELS -- American defense planners are preparing massive new
troop cuts in Europe, reducing the U.S. presence here by as much as
two-thirds over the next several years, a senior U.S. official said
Tuesday.
The current 310,000 U.S. troops in Europe will be cut to 100,000 to
150,00 in response to a sharply reduced Soviet military threat and in
recognition of severe budgetary pressures at home, said the official, who
asked that his name not be used.
The new cuts would be conditioned on equal Soviet reductions and
strict verification measures to ensure compliance with the agreement, U.S.
officials said.
In Washington, President Bush on Tuesday sought to dampen
speculation over the upcoming U.S.-Soviet summit meeting by declaring
that the weekend talks in Malta will produce no deals on troop reductions
in Europe. And here in Brussels, Secretary of Defense Cheney reassured
West European allies that the U.S. will not unilaterally reduce forces
committed to the Western military alliance.
(John Broder, Los Angeles Times, A1)
UNITED STATES REASSURES NATO ALLIES
BRUSSELS -- Secretary of Defense Cheney reassured European allies
Tuesday the U.S. will not unilaterally reduce forces committed to the
Western military alliance, conference officials said.
Earlier Tuesday, the chairman of the NATO Military Committee said
the Western alliance should reduce its defense forces only within the
framework of verifiable arms control agreements and not prematurely or
unilaterally.
Cheney explained the U.S. defense budget for the coming years at a
meeting of NATO defense ministers during which he also reviewed the
military posture of the alliance, taking into account the fast changes in
Eastern Europe. Several conference officials called Cheney's explanation
reassuring.
A U.S. official said Cheney told the allies the U.S. would "not make
any unilateral reductions."
(Herman Saen, UPI)
STUDY FINDS NATO WAR PLANS OUTDATED
Report Concludes Soviets Incapable Of Surprise Attack In Europe
The U.S. intelligence community, in a fundamental reassessment of
the military balance in Europe, has concluded that for the past several
years the Soviet Union and its Warsaw Pact allies have been incapable of
quick launching a massive attack against the West -- a conclusion that
undermines the assumptions behind existing NATO strategy and military
deployments.
The finding is contained in a classified, 30-page study for the
secretary of defense completed before political reforms swept through
Eastern Europe, an upheaval that officials say has further reduced the
danger of an attack against NATO from the East.
The study depicts as outdated two scenarios for war in Europe that
drove the West to keep its forces at a high level of readiness over the
past decade: a Soviet invasion with little advance preparation, the
so-called "standing start" or "bolt out of the blue" attack; and a Soviet
attack after only two weeks of mobilization.
(Patrick Tyler & Jeffrey Smith, Washington Post, A1)
-more-
Wednesday, November 29, 1989 -- A-6
BUSH SIGNS AID BILL
President Bush on Tuesday signed a bill authorizing $938 million in
U.S. aid over three years to Poland and Hungary, saying that political
reforms there have "stirred the imagination of the world."
Bush signed the legislation as he prepared to send off to Poland a
presidential delegation whose leaders cautioned that Poles and other
Eastern Europeans may be in for some hard winters before economic
changes can catch up with political reform.
"We must be careful that economic expectations do not become
unrealistic. In the kind of emotional environment that exists today, that
can very readily occur," said Agriculture Secretary Yeutter, who heads
the mission of government, business, labor and other leaders for a
four-day visit.
Yeutter said he was carrying with him to Poland an additional $20
million installment in U.S. food aid.
(Tom Raum, AP)
CONGRESSIONAL MEDDLING COULD FOUL UP AID TO POLAND
A Cabinet-level mission flies to Poland Wednesday to sell President
Bush's aid package to that country's growing private industry, but
Administration officials fear that congressional meddling may derail the
historic program.
Provisions tacked onto the Poland aid package by Congress and the
U.S. government's lack of experience in converting command economies to
free enterprise could prevent speedy implementation of the aid effort, the
officials said.
Congress' action may force the Agency for International Development
to take the time-consuming step of establishing a mission in Poland and
Hungary, a U.S. aid official said. The Administration "felt we could
operate pretty much from here" but congressional requirements will make
that "pretty difficult to do now," the official said.
(Paul Bedard & Warren Strobel, Washington Times, A6)
KOHL OFFERS NEW PLAN LEADING TO REUNIFICATION OF GERMANY
BONN -- West German Chancellor Kohl Tuesday proposed a 10-point
plan that could rewrite the political map of Europe by rebuilding East
Germany and reuniting a divided nation whose border has served for 44
years as the demarcation between East and West.
Promising that a single Germany "will never be a threat," but would
rather help unite all of Europe, Kohl spelled out steps leading from
economic assistance to a vague confederation of the two states and finally
to a single nation -- a goal stated in the preamble to the West German
constitution.
Kohl and his aides steered clear of any timetable for unity. "The
way to unity cannot be planned," the chancellor told Parliament, "with an
appointment calendar in hand."
In one dramatic move, Kohl, who has been accused of reacting slowly
and indecisively to the opening of the Berlin Wall earlier this month, put
his own political future on the line and told East Germany what Bonn
expects before West Germany will put up the enormous aid package
necessary to create a vital economy in the East.
(Marc Fisher, Washington Post, A1)
-more-
Wednesday, November 29, 1989 -- A-7
EAST GERMANS REJECT KOHL'S REUNIFICATION PLAN
EAST BERLIN -- Communist Party leader Krenz strongly rejected
Chancellor Kohl's call for an eventually united Germany but welcomed the
West German leader's proposal for closer cooperation.
In a rare moment of agreement with the embattled communist
leadership, some prominent East German dissidents also said they opposed
reunification.
After Kohl made his proposal on Tuesday, Krenz said a united
Germany could conjure fears of a Nazi-era Germany, "and I know no one
in the world who would like such a Germany."
(Nesha Starcevic, AP)
WHITE HOUSE WELCOMES KOHL PLAN
FOR EVENTUAL GERMAN REUNIFICATION
The Bush Administration on Tuesday welcomed West German
Chancellor Kohl's plan for eventual German reunification as an expression
of "the deepest aspirations of his people," possibly signalling a sharp
disagreement at the Malta summit.
State Department spokeswoman Tutwiler said reunification of the
divided German state is "a goal that we and (West Germany) have long
shared."
The U.S. response was in stark contrast to the remarks of Soviet
officials accompanying President Gorbachev in Rome, who made it clear that
Moscow is not ready for any change in the postwar status of Germany.
Vadim Zagladin, a Gorbachev adviser, complained that Kohl was trying to
dictate the future of East Germany.
(Norman Kempster, Los Angeles Times)
CZECHOSLOVAKIA TO END COMMUNIST MONOPOLY
PRAGUE -- Premier Ladislav Adamec announced Tuesday that he
would introduce in the National Assembly on Wednesday changes in the
country's constitution that would drop clauses guaranteeing the leading
role of the Communist Party and break its monopoly on power in this
country.
The government's action came after 11 days of massive protests,
culminating in a two-hour strike Monday involving millions of people
nationwide. The protests have produced an increasingly headstrong mass
democratic movement, which had already begun to speak of the power of
the Communist Party in the past tense.
The Czechoslovak premier also announced Tuesday he would try to
form a new broad-based cabinet, including non-communists, by Sunday.
(Blaine Harden, Washington Post, A1).
-more-
Wednesday, November 29, 1989 -- A-8
23,000-JOB CUT AT PENTAGON PROPOSED
But Plan May Create More Managerial Jobs And Bureaucracy
Pentagon leaders have proposed slashing 23,000 jobs from the
military's weapons-buying bureaucracies in response to Defense Secretary
Cheney's demands to tighten control over the procurement system and save
$30 billion over the next five years, according to congressional documents.
But military officials have recommended cutting a far greater
percentage of workers and field-level positions than managerial jobs, and
in some cases, may be adding new high-level manager positions and
creating additional layers of bureaucracy, according to a congressional
review of the preliminary plans.
"If this is what the services see as streamlining, we're in deep
trouble," House Armed Services Committee leaders wrote in a letter to
their members calling for hearings on the issue when Congress returns
from its recess in January.
Defense Department officials, who declined to comment on the
congressional analysis, said the proposed changes in procurement are still
under review and subject to change by Cheney and his top deputies.
(Molly Moore, Washington Post, A21)
GANDHI RESIGNS AS INDIAN PRIME MINISTER
NEW DELHI -- Indian Prime Minister Rajiv Gandhi resigned Wednesday
after his Congress party lost its parliamentary majority in elections, the
Press Trust of India reported.
His resignation clears the way for President Ramaswamy Venkataraman
to oversee efforts to forge a new government. Sources said earlier that
Gandhi would be asked to stay as caretaker prime minister until a new
government was formed. They expected Venkataraman to call on the
National Front leader, expected to be a former Gandhi ally turned foe,
Vishwanath Pratap Singh, to try to put a government together. (Reuter)
BAKER PLAN FOR MIDDLE EAST DIALOGUE NEAR IMPASSE
Administration Asks Egypt To Help Break
Israeli-PLO Deadlock Over Conditions For Talks
The Bush Administration is close to an impasse in its efforts to revive
the long-stalled Middle East peace process following the refusal of the PLO
to accept Secretary of State Baker's five-point proposal for an
Israeli-Palestinian dialogue.
The PLO refusal was conveyed by a member of its executive
committee, Gamal Sourani, to the Egyptian government last week, and the
gist of the reply, though not the formal rejection, was forwarded to the
U.S. shortly afterward.
However, the U.S. has refused to take "no" for an answer and asked
Egypt to go back to the PLO another time to see if some compromise can
be reached that would allow a meeting of Israeli and non-PLO Palestinians
to start the dialogue.
(David Ottaway, Washington Post, A12)
-more-
Wednesday, November 29, 1989 -- A-9
U.S. SAID BOUND TO PAY U.N. DUES REGARDLESS OF ROW OVER PLO
U.N. -- The secretary-general believes the U.S. is duty-bound do
pay its U.N. dues, his spokesman said Tuesday in an implied rebuke to
Washington for threatening to cut off funds if the world body upgrades
the PLO's status.
"He considers that the contribution of the United States to the budget
is not in any way linked to anything that happens in the General Assembly
but that it is an obligation under the Charter," the U.N. spokesman said.
"It is a debt by the government of the United States. It is not a
loan to the United Nations or a charity," he added.
(Anthony Goodman, Reuter)
U.S. SAYS TWO PANAMANIAN OPPOSITION LEADERS ARRESTED
The U.S. charged Panama Tuesday with arresting two opposition
leaders and called for their immediate release.
Guillermo Cochez and Francisco Artola were taken into custody by
agents of strongman Noriega on Nov. 27 as they returned from the U.S.,
the State Department said in a statement
"The regime has not yet admitted to holding these individuals,
although their arrests were seen by reliable observers," the State
Department charged. "We condemn this outrageous act and call for their
immediate release," it. added.
(Reuter)
RIGHTIST SALVADORAN JUDGE SHOT DEAD
SAN SALVADOR -- Two gunmen killed Francisco Jose Guerrero,
former president of the Supreme Court and prominent rightist politician,
Tuesday as he drove to his office.
Guerrero, 64, who ran for president in 1984, was shot three times in
the chest, according to a doctor at the hospital to which he was rushed.
The driver was short in the arm, and police said bodyguards killed one
presumed assailant and wounded another.
The assassination of Guerrero was the fist to be attributed to the
guerrillas since the Marxist-led FMLN launched a nationwide offensive Nov.
11, and there was no immediate acknowledgement. However, the rebels
have assassinated several top government officials this year, including the
attorney general and the presidential chief of staff.
(Douglas Farah, Washington Post, A29)
NTSB OFFICIAL DIES IN VENEZUELAN PLANE CRASH
CARACAS -- Joseph Nall, a member of the U.S. National
Transportation Safety Board, was killed along with two Venezuelan pilots
when their small plane crashed in hills west of the city, U.S. Embassy
officials said Tuesday.
There were conflicting reports about the number of injured and their
identities.
Embassy officials said five U.S. diplomats aboard the twin-engine
Cessna 402 were seriously injured in the crash, which occurred Monday
evening, apparently in bad weather.
(AP, Washington Post, A11)
-more-
Wednesday, November 29, 1989 -- A-10
FBI BOMB EXPERT JOINS CRASH PROBE
In Colombia, Anonymous Caller Linked Explosion To Cocaine Cartel
The FBI Tuesday dispatched a bomb specialist to Colombia to assist in
the investigation of Monday's Avianca Airlines crash, which killed the 107
people aboard.
The bomb specialist was sent at the request of the Colombian
government to help determine whether the crash was the result of a
"criminal act," FBI spokesman Milt Ahlerlich said.
(Michael Isikoff, Washington Post, A7)
CHINESE STUDENTS APPEAL TO BUSH NOT
TO VETO BILL LETTING THEM STAY IN U.S.
Chinese students, fearful of being forced back to China during its
repression of democratic activity, Tuesday appealed to President Bush to
sign a bill waiving their legal requirement to return home when their
studies are completed.
Bush said he will veto the measure that was approved 403 to 0 in the
House and by a unanimous voice vote in the Senate last week. He has
until midnight Saturday to either sign it, veto it or kill it through
inaction. Because Congress is in recess, it would have no chance to
override Bush's veto.
Chinese student leader Haiching Zhao, a doctoral candidate at
Stanford University, said he has been assured that the bill, if vetoed, will
be reintroduced when Congress reconvenes in late January. Assuming
Congress and Bush don't change their minds, a second veto would be
easily overridden.
"We ask you, Mr. President, to stand with the pro-democracy
movement, just as you have supported Solidarity in Poland and the freedom
movements throughout Eastern Europe," said Yongchuan Liu, president of
the Independent Federation of Chinese Students and Scholars, which
represents the estimated 40,000 students in the U.S.
(Benjamin Shore, Copley)
EDITOR'S NOTES: "Liason Officer With Contras Asks Bush To Save His
Career," by Bill Gertz, appears in the Washington Times, A4.
"Syrian Forces Cross Border For Possible Assault On Aoun," by Simon
Martin, appears in the Washington Times, A9.
"Don't Give Rockets To Rebels, Kabul Tells U.S.," by John Burns,
appears in the New York Times, A11.
###
NATIONAL NEWS
FISCAL 1991 BUDGET DRAFTS FOR CONGRESS
SEEK TO CURB MEDICARE DOCTOR PAYMENTS
Drafts of the fiscal 1991 budget that President Bush will send
Congress in January include measures to slow the rise in doctors'
payments under Medicare.
Officials at the Department of HHS and the OMB have generally
agreed on provisions that would cut spending by as much as $1.6 billion
from projected levels next fiscal year by restricting fees paid to surgeons,
radiologists, anesthesiologists, and for outpatient services provided by
hospitals.
But a number of major HHS budget issues, including funding for
AIDS and other medical research as well as an expansion of the Head Start
preschool program, remain in dispute, officials say. And HHS Secretary
Sullivan plans to challenge many of the OMB's funding recommendations.
(Kenneth Bacon, Wall Street Journal, A16)
KEMP WANTS $93 MILLION RESCINDED
HUD Chief Opposes Discretionary Fund
ATLANTA -- HUD Secretary Kemp said Tuesday he will ask Congress
to rescind its decision to appropriate $93.4 million for 41 projects that
would come from a HUD discretionary fund that he is attempting to
abolish.
At an informal news conference at the National League of Cities'
annual convention, Kemp said he has asked OMB Director Darman to allow
Congress to redirect the money included in the appropriations measure
"into programs to help low-income housing, homeless people or perhaps put
it into our service-supported housing and voucher program."
Kemp harshly criticized members of Congress for acting to spend HUD
funds in a manner that he said will undercut his efforts to clean up the
troubled department in the wake of revelations of widespread
mismanagement and influence-peddling. "They should not have taken my
discretionary account, which I have wiped out totally, and then do in the
Appropriations Committee or in the Congress the type of targeting that
they were critical of having been a past practice at HUD," he said.
(Gwen Ifill, Washington Post, A13)
REGULATOR WALL DOESN'T PLAN TO LEAVE
Thrift regulator Danny Wall doesn't plan to heed the latest call for
his resignation, his spokesman said Tuesday.
That call came from Sen. Mitchell, who said the day before,
"Everyone will be better served by a clean break and new leadership,"
though Wall might not be to blame for the problems of the S&L industry.
Wall declined Tuesday to respond personally to Mitchell's statement,
made to reporters at a luncheon, but his spokesman, William Fulwider, said
the senator's complaint "is hardly grounds for asking for his resignation."
(Dave Skidmore, AP)
-more-
Wednesday, November 29, 1989 -- A-12
U.S. SUING TO FORCE NEVADA TO ALLOW NUCLEAR WASTE SITE
Facility's Opening Delayed Until At Least 2010
The Bush Administration will sue Nevada to force it to allow work to
start on the proposed nuclear waste repository site at Yucca Mountain, but
even under the most optimistic scenario the repository cannot open before
2010, Energy Department officials announced Tuesday night.
The announcements ensure that the political and legal struggle over
disposition of tons of deadly radioactive waste piling up at the nation's
power plants -- an issue Congress thought it had settled in 1987 -- will
continue for many years. The facility was originally scheduled to open in
1988, then in 2003.
Deputy Energy Secretary Henson Moore, announcing a restructuring
of the project at a nuclear industry convention in San Francisco, said the
department is "not happy with the seven-year delay but frankly, in
putting this new plan together, we have come to see just how unrealistic
that earlier 2003 date was."
(Thomas Lippman, Washington Post, A2)
WHITE HOUSE BACKS ENVIRONMENTALISTS ON WATER
Interior Secretary Forced To Retreat On Renewed
Of Contracts With California Farmers
White House officials, siding with environmentalists in a key policy
dispute over the use of scarce western water, Tuesday forced Interior
Secretary Lujan to retreat from a plan to renew long-term federal water
supply contracts with California farmers, sources said.
Lujan has been under intense pressure from California farming
interests to renew the 40-year water contracts without lengthy
environmental studies. But environmentalists have argued that the
contract renewals would have a profound impact on wetlands and rivers in
California's Central Valley, and thus should be subject to thorough
environmental impact studies.
The EPA and the Council on Environmental Quality support that view,
but Lujan has maintained that he has a legal obligation to provide farmers
with an uninterrupted water supply.
Lujan had planned to announce his strategy for impending renewals
Tuesday, but backed down after environmental council Chairman Michael
Deland and Administration officials complained that his plans gave short
shrift to environmental concerns, sources said.
(John Lancaster, Washington Post, A4)
BUSH SIGNS TWO BILLS HONORING WOMEN
President Bush signed two bills Tuesday to honor women who served
the nation in times of crisis, from the Civil War to the one in Vietnam.
Bush approved legislation renaming the Maryland portion of the
George Washington Memorial Parkway as the Clara Barton Parkway after
the founder of the American Red Cross. He also signed a separate bill
favoring the location of a memorial within the District's inner core to honor
the women who served in Vietnam. (John Smith, Washington Times, B3)
-more-
Wednesday, November 29, 1989 -- A-13
FORMER NEW YORK STATE SENATOR PICKED
President Bush has chosen former New York State Sen. John Dunne
as assistant attorney general for civil rights, the post left vacant all year
after William Lucas failed to win Senate confirmation, Administration
sources said Tuesday.
Dunne belongs to the all-male Garden City Golf Club on Long Island
and has said he would resign that membership if nominated to the Justice
Department post.
(Christopher Connell, AP)
EDITOR'S NOTES: "TALKING POINTS -- President Moves Political
Adversary To The Bench," by Ann Devroy & Maralee Schwartz, appears in
the Washington Post, A25.
"Treasury's Mullins Is Expected To Fill Vacant Seat On Federal Reserve
Board," by Alan Murray, appears in the Wall Street Journal, A2.
-end of A-section-
NETWORK NEWS SUMMARY
(Tuesday Evening, November 28)
CZECHOSLOVAKIA
ABC's Peter Jennings: They've been using a lot of adjectives here today
like amazing and astounding and, in some cases, unbelievable. The
news is this: Less than two weeks after Czechoslovakia was suddenly
overcome by an astonishing drive for change, the Communist Party
here has virtually agreed that it will give up its monopoly on power.
It has taken only 12 days to drive the Communist Party here into a
state of despair. Today, when the opposition and the prime minister
sat down to negotiate the future shape of the Czech political system
the government was, once again, on the defensive.
ABC's Jerry King reports from Prague that Civic Forum leader Vaclav
Havel met for the third time with government ministers. Prime
Minister Adamec promised that he would, by next Sunday, come up
with a proposal for a new government that would include
non-communists. The government also announced that they would end
their monopoly on political power. They've even gone further, saying
the next generation of Czechs need not be educated according to
Marxist-Leninist ideology. Students were generally skeptical and
announced their strike is continuing; they generally welcome the
package of proposals, however. Leaders of the Civic Forum disclosed
seven new demands given to the government today. They called for
the resignation of President Gustav Husak and they vowed to seek-
the prime minister's resignation too if he could not make the changes
happen.
Jennings reports that the Civic Forum is struggling to adapt to the
methods of democracy. The opposition suffers from a lack of
leadership. At the opposition headquarters today, some of those
involved are worried about being such political amateurs. They are
reassured by the events of the last two weeks, however. (ABC-Lead)
NBC's Tom Brokaw: Another historic day in Eastern Europe. The
Communist Party today conceded it can no longer claim constitutional
control of Czechoslovakia. It is prepared now to share power
through free elections and Czechoslovak communist officials are
recommending an interim government made up of the best and
brightest in Czechoslovakia -- whatever their political affiliation.
That government could be in place by next week. So, after filling
Wenceslas Square for 10 straight days and almost every other street
in the country yesterday, the Czechoslovak reform movement now is
prepared to move inside to the corridors of power
The reform movement called off mass rallies temporarily so the
economy won't collapse and political negotiations can proceed. There
was an announcement of an end to the constitutional monopoly by the
Communist Party.
(Marian Calfo, Minister without Portfolio, through interpreter: "The
moving of the provision of the leading role of the party.")
-more-
Wednesday, November 29, 1989 -- B-2
Brokaw continues: Tonight, members of the party from all over the
country met in Prague to discuss their future. They spoke for and
against the current party leadership; state television provided
lengthly coverage. One of the real heroes of the reform movement,
Walter Komarek, believes the Communist Party should have no role in
the future. He wants no political compromise.
(Komarek, through interpreter: "I'm just afraid that what happens
here cannot be solved by normal political compromises. Can there be
a compromise between moral and immoral, a compromise between good
and evil, a compromise between humanity and stupidity?")
(NBC-Lead)
NBC's Rick Davis reports on the liberalization of Czech television.
Tonight, state-run television allowed previously-banned performers to
sing "Let My People Go" in Czech on the air.
(NBC-11)
CBS's Dan Rather: One-party communist rule is over tonight in yet
another Eastern European country. Forty-one years after the Soviets
first moved in, 21 years after Russian tanks crushed the Prague
spring, Czechoslovakia is back on the road to democracy -- this time
with the Kremlin's blessing. Here in the town square, the
Czechoslovakian tri-color [flag] is up, the candles burn, placed here
by women and children celebrating, savoring, a day of momentous
change
After two weeks of strikes and protests, Prague today returned to
normal as people went back to work.
CBS's Richard Threlkeld reports that the normally subdued people of
the Czech countryside are excited about the changes occurring in
their country.
(CBS-Lead)
DEFENSE CUTS/MALTA MEETING
Jennings reports that Secretary Cheney assured the NATO defense
ministers in Brussels that the U.S. intends to maintain a major
military presence in Western Europe and will not make any cuts
unilaterally. Mr. Bush went out of his way to make that same point
at the White House today.
ABC's Brit Hume: The President protested what he called hyped
speculation and euphoric expectation that his conference with
Gorbachev would produce an arms deal.
(TV coverage: President speaking to reporters in Oval Office.)
Mr. Bush insisted, despite talk of deep defense cuts at home, the
meeting would be just what he always said: a wide-ranging discussion
with no agenda and no deal.
(President: "We don't want to get out ahead of our allies. And we're
-- Secretary Cheney is taking a look at defense requirements and so
-- but that's a good subject, because I am not going to enter into an
arms control agreement."
Reporter: "But you're willing to talk about deeper cuts __"
President: "I'm willing to talk about anything. That's what the
meeting is abcut. That's why I view it as a meeting where we can
discuss anything without a fixed agenda.")
Agenda or not, Mr. Bush said he would discuss the Soviets alleged
support for Cuban and Nicaraguan arming of the guerrillas in El
Salvador.
-more-
Wednesday, November 29, 1989 -- B-3
Hume continues: Mr. Bush said Costa Rican President Arias had
called him today to ask him to press Gorbachev on that issue.
(President: "I will be urging Mr. Gorbachev to do what they should
have done some time ago: cease support for those who are fueling
revolution, exporting it in this hemisphere.")
A senior Administration official said tonight Central America could be
the most contentious issue of the Gorbachev meeting. But he didn't
seem very worried about that, and he didn't seem worried either
about any bold Gorbachev plan to disarm or reorder Europe. The
President, he said, would simply listen and then take the idea up
with NATO.
(ABC-2)
NBC's John Cochran: An irritated, grumbling President called in reporters
to lodge a complaint: that what he called crazy, hyped-up news
reports had fed speculation that he and Mikhail Gorbachev will agree
to dramatic new cuts in weapons and troops.
(President, speaking to reporters in Oval Office: "So the surprise
will be -- if you're looking for a surprise -- there won't be a
surprise. That may come as a surprise.")
So, no surprises. But Bush says he does have some ideas on troop
levels and arms control that he will discuss with Gorbachev.
(President: "Now, if we want to talk in a general way with the Soviet
leaders about our aspirations for how our defense system will look ten
years from now, of course we'll do that.")
The civil war in El Salvador is also high on Bush's list of topics for
his weekend with Gorbachev. Bush blames Fidel Castro for sending
arms to Nicaraguan Marxists who then supplied the FMLN rebels in El
Salvador.
(President: "I had a call today, incidentally, from President Arias of
Costa Rica. And I don't think I'm blindsiding Mr. Gorbachev by
this, but I will raise with him, at Arias' request, the fact that the
Soviet Union should stop feeding Fidel Castro, who Mr. Arias tells me
is directly responsible for the export of revolution to supporting the
FMLN.")
As for the crumbling of communism in Eastern Europe, Bush said he
and the NATO allies agree there is no need for the U.S. to take the
lead.
(President: "I think that if -- that the lead is being taken by the
people in these countries. It doesn't come from somebody halfway
across the world dictating how fast change should be or what change
should encompass.")
Bush insists he will spring no surprises at the Malta summit, but
what about Gorbachev? Tonight, a senior official here said, we're
prepared for him, after all, surprises are Gorbachev's trademark.
NBC's Garrick Utley: And in Malta, preparations for the weekend
summit meeting are well under way. Bush and Gorbachev will be
meeting offshore on two warships, carefully chosen to be of similar
size
The ships were allowed into Maltese waters only after the
United States and the Soviet Union promised that neither would be
carrying nuclear weapons.
(NBC-3)
CBS's Bob Schieffer: In Washington today, President Bush said there
would be no deals and no surprises out of the weekend summit at sea
with Soviet leader Mikhail Gorbachev. The president seemed to be
trying to lower public expectations and to reassure the NATO allies in
Europe.
-more-
Wednesday, November 29, 1989 -- B-4
CBS's Lesley Stahl: Worried that expectations for the Malta summit
are running too high, President Bush decided he had to cool off
what he called the hyped, euphoric, and frantic speculation.
(President, speaking to reporters in Oval Office: "So the surprise
will be -- if you're looking for a surprise -- there won't be a
surprise. That may come as a surprise.")
What the President is trying to shoot down is any suggestion that he
might negotiate a quick new arms control treaty. But his own
advisors are putting out the word that he is prepared to discuss deep
troop cuts in Europe and even reductions in strategic weapons with
Gorbachev when they meet over the weekend. That he did not deny.
(President: "I am not going to enter into an arms control agreement.
Now, if we want to talk in a general way with the Soviet leaders
about our aspirations for how our defense system will look ten years
from now, of course we'll do that.")
Mr. Bush also said he was encouraged by President Arias of Costa
Rica to challenge Gorbachev on continued Cuban and Nicaraguan
shipments of Soviet weapons to leftist rebels in El Salvador.
(President: "I don't think I'm blindsiding Mr. Gorbachev by this, but
I will raise with him, at Arias' request, the fact that the Soviet Union
should stop feeding Fidel Castro.")
Central America may be the only issue where the President has a
chance to look tough. Even if Gorbachev is not directly arming the
rebels, the White House insists he has the power to stop the
shipments. Said an official here, Mr. Bush will tell Gorbachev, we
don't care how you do it, just do it.
(CBS-3)
GERMAN REUNIFICATION
Jennings reports Chancellor Kohl today outlined what he regards as a plan
to realize the goal of German reunification in the future.
ABC's Mike von Fremd reports from Berlin that Chancellor Kohl told
Parliament that making Germany one state again remains the political
goal of the West German government, but Kohl set no timetable and
did not say specifically how the two states could become one.
Instead, he offered immediate West German financial help for the East,
proposed joint governmental committees on everything from the
economy and the environment to culture and technology. And he
promised the future design of Germany would respect the integrity
and security of the rest of Europe. Kohl said he is certain unity will
come if the people in Germany want it. Last night, many of the
200,000 demonstrators in Leipzig carried signs calling for one
Germany. Tonight, however, East German party leader Krenz
insisted there must be two independent German states and many
people in both countries said they agree. Many in the West worry
about taking on the financial burden of the East while many in the
East do not want to be swallowed up by a powerful neighbor.
Jennings reports that a West German student studying in the United
States discovered that the concrete in his souvenir chunk of the
Berlin Wall was mixed with asbestos. It's only a slight risk, but he's
been advised to keep his bit of history in a sealed container.
(ABC-3)
-more-
Wednesday, November 29, 1989 -- B-5
Brokaw reports that Chancellor Kohl said that East Germany must hold free
elections and loosen control over its economy before cooperation can
take place between East and West Germany. In West Berlin today,
Senator Edward Kennedy made what he called a journey of memory
and hope; he visited the site where his brother declared 26 years
ago, I am a Berliner.
(CBS-5, NBC-2)
SOVIET ECONOMY
NBC's Bob Abernethy reports from Moscow that most citizens do not yet
agree with Gorbachev's economic plans of less central control and
more economic freedom. The problem is that this will bring big
inequalities of wealth among Soviet citizens; most Soviet citizens think
big inequalities are wrong and are repelled by big profits in trade.
A poll shows that only 25% of the people want more free markets and
40% want more discipline and order -- a return to what's called the
strong hand.
NBC's John Chancellor comments on the economic woes of the Soviet
Union. The Soviet Union has been lurching toward liberalism under
Gorbachev, but if things go on as they are it could stagger back into
conservatism without him.
(NBC-10)
SOVIET UNION/RELIGION
Brokaw reports that tomorrow Mikhail Gorbachev arrives in Rome for three
days of meetings, including the first ever between a general
secretary of the Soviet Communist Party and the Pontiff. (NBC-9)
CBS's Tom Fenton reports that in the Soviet Ukraine, Catholicism and
anti-Soviet nationalism are so closely linked that they are inseparable.
On Friday, when Gorbachev meets the Pope, the main item on the
agenda will be the status of the Ukranian Catholic Church. There
were indications today from the Russian Orthodox Church that they
are about to reach an accommodation with the government. The
Catholic Church in the Soviet Union has, since Stalin's persecution,
refused to die; the faithful went underground and became the largest
illegal organization in the Soviet Union. During the years of
persecution, their strength has grown to an estimated five million
followers. The Russian Orthodox Church is tightly controlled by
Moscow while the Catholics are fiercely independent. For Gorbachev,
this is not just a question of freedom, it's a question of nationalism.
Catholic Ukrainians believe they will never be fully free to practice
their religion until the Ukraine is free.
Rather interviews Rev. Billy Graham and Nobel Prize winner Elie
Wiesel on religion and communism.
(CBS-10)
EL SALVADOR
Schieffer reports the one-time head of El Salvador's supreme court and
former right-wing candidate for president was assassinated today.
Police blamed leftist rebels.
(NBC-6, CBS-4)
-more-
Wednesday, November 29, 1989 -- B-6
COLOMBIA/PLANE CRASH
Utley reports that investigators say there was definitely an explosion on
the plane disaster which killed 107 people. Authorities have no idea
who or what blew up the flight, however. Passengers had time to
put on emergency oxygen masks before they died.
(NBC-7)
LEBANON
Schieffer reports that Syrian tanks and troops are pouring across the
border into Lebanon to support the Syrian-backed Lebanese
government, which earlier today fired anti-Syrian, Christian military
leader Michel Aoun as Lebanese Army Commander. Aoun defied the
order and has now vowed that his 15,000 soldiers will fight to the
death.
(CBS-2)
ABU NIDAL
Utley says one report claims Abu Nidal is under house arrest in Libya.
Another says he is in a Libyan hospital with terminal cancer. We
cannot confirm which one is the real story and which is the
cover.
(NBC-8)
ABORTION/PARENTAL CONSENT
ABC's Diane Sawyer reports that the Supreme Court will tomorrow hear
arguments on the legality of parental consent laws for abortions.
ABC's Carole Simpson reports on the debate over parental consent
laws. Anti-abortion groups have pushed parental consent laws as a
way of making abortion so difficult for teenage girls they will decide
to have their babies and either keep them or put them up for
adoption.
(Darla St. Martin, National Right to Life: "Once you involve parents
with the young people, a lot of the fear and the concern and the
panic that a young person has that pushes them into abortion ends.")
Abortion rights activists oppose the laws because they believe teens
have the same right to privacy as adult women and should be allowed
to make their own decisions.
(Rebecca Stone, Center Population Options: "If the threat of telling
parents is going to cause kids to get information from people who
don't have it or to try and do something to themselves just to avoid
telling their parents, then those are not the kinds of laws we want to
pass if what we care about is helping teenagers.")
Even among people who support a woman's right to choose an
abortion, 70% favor parental consent laws. They say parents should
be involved in all decisions affecting their daughter's lives, including
reproductive decisions.
Sawyer reports that abortion rights advocates in Canada shouted
down Prime Minister Mulroney as he urged Parliament to pass a bill
that would restrict abortions. In spite of the protest, the bill won
preliminary approval; it would end abortion on demand and make
abortions legal in Canada only on the recommendation of a doctor.
(ABC-8)
-more-
Wednesday, November 29, 1989 -- B-7
FIRST LADY
Schieffer: First Lady Barbara Bush had a series of tests at the Mayo
Clinic in Minnesota today. She's been under treatment this year for
a thyroid condition but still having trouble with watery eyes and
episodes of double vision.
(CBS-9)
LIVER TRANSPLANT
Sawyer reports that, despite complications, the donor and recipient of the
country's first living donor transplant are each doing well.
(NBC-5, CBS-8, ABC-5)
-End of B-Section-
EDITORIALS/COLUMNISTS
MALTA MEETING
From Yalta To Malta -- "President Bush must wrestle from the Soviets
the certainty that they will cease support of dictatorial regimes and
terrorist groups throughout the world, especially in Latin America and
Africa. Bush must insist on the integrity of NATO and the right of the
United States to match the Soviets' unabated military buildup
Bush
must not
simply give the Soviet bloc more time to continue oppressing its
captive peoples. He must instead offer the Soviets a way to surrender to
the inevitable as gracefully and speedily as possible. Bush must not
compromise with a system that is just plain wrong at its core
President Bush must make Malta the unconditional victory for freedom that
Roosevelt was unable to bring about at Yalta."
(New York City Tribune, 11/27)
Summitry: What Can Bush Give Soviets? -- "The U.S. government should
do what it can to help Gorbachev out, for it is very much in the Western
interest that Gorbachev survives
Confidential discussions about
German reunification, the Middle East, and so on will take up much of the
seaborne summit, but none of that will give Gorbachev any concrete
accomplishments to show the Soviet people on his return. Washington's
power to help Gorbachev ride out the next critical year or two in Soviet
politics is only marginal, but Bush should do what he can."
(Gwynne Dyer, Cleveland Plain Dealer, 11/27)
At Summit, Bush Can Clear The Air -- "Bush should use the occasion of
his shipboard rendezvous with Mikhail Gorbachev next month to
re-establish his credibility on the issue of chemical weapons. The pair can
simply state that they have come to an understanding on the matter and
that cessation of production of chemical weapons is justified by the
improvement in U.S.-Soviet relations and dynamic changes occurring in
Eastern Europe. By doing that, Bush can regain the high ground on a
major world issue that is known to be important to him personally. He
really has little to lose because Congress is unlikely to approve giving the
money to continue the production of the new chemical weapons."
(Cecil Johnson, Fort Worth Star-Telegram, 11/24)
Mr. President, Don't Waste The Summit -- "The meeting, said Bush, will
'deepen our respective understanding of each other's view.' However, to
merely seek to 'deepen' both leaders' 'understanding' would waste the
summit
We need to discuss how to reshape the entire European
order
The fact that Gorbachev's future is uncertain makes it even
more important to push for major agreements that no Soviet leadership
coalition would likely reverse
Instead of wasting the upcoming summit
just getting acquainted with Gorbachev, President Bush should propose
pulling the troops out of Europe."
(Doug Bandow, Christian Science Monitor, 11/20)
###
FOREIGN MEDIA REACTION
MALTA MEETING
"Bush Ready To Talk About Big Defense Cuts At Summit"
"[The] White House statement [on conventional arms reduction] left no
doubt that the Malta discussions would be critical to arms reduction and
long-range strategies of the two military alliances, possibly for years to
come. The comments were also confirmation that Malta is no longer
considered the feet-up get-acquainted session originally envisaged by Mr.
Bush."
(Daily Telegraph, Britain)
"Tendency To Save Money"
"There is no doubt that George Bush must save money
First, for
months the pressure in the United States on the Administration has been
growing to the effect that it is not only the Soviet Union that should
profit from the declining Soviet threat to Europe, but also the U.S.
taxpayer. And if Washington is really interested in saving funds, U.S.
bases abroad will certainly be affected first
And there is a second
reason why George Bush could make an offer to reduce military spending:
Last spring the President demonstrated how he can take the initiative away
from Gorbachev. For instance, Bush could present an incremental plan for
troop reductions and economic support for the Soviet Union. It would
secure the Western superpower a political lead that promises to be decisive
in the next year.
(Stuttgarter Zeitung, West Germany)
"As Long As They Want"
"There is no doubt that this is the time for great change in the
West. The West will have to draw the consequences and find new security
guidelines. This includes U.S. troops in Europe, which will have to be
adapted to the new reduced security threats and the U.S. budget
problems
But he who thinks that George Bush will come up with
daring unilateral concepts in Malta, which may turn NATO structures
upside down, underestimates this man's innate caution
Only a week
ago, he said, 'We will stay there [in Europe] as long as we are wanted
and needed'."
(Die Welt, West Germany)
"Not At The Side Table"
"Only coordination between all Western powers on both sides of the
Atlantic promises success for the reform movements in Eastern Europe
The FRG does not count on spectacular decisions off Malta. Neither
George Bush nor Mikhail Gorbachev need to say anything concerning the
German question. The East Germans will decide that. Kohl's contacts
with Bush are therefore topic-oriented and they do not come too late."
(General-Anzeiger, West Germany)
-End of News Summary-
Presidential Phone Calls
/
DATE: 11-29-89 TIME: 920
incoming/outgoing
PS Buck
WITH:
SUBJECT: Gorb an Christian
a couldral weat
"
Adamishin
with a Deputy For Minuter
whole group staying
neth family, can Creen
100 Sov- " here for
Photocopy from George Bush Presidential Library
Cont. =
FOLLOW UP:
Bush Library Photocopy
George Bush Handwriting
THE WHITE house
washington
Wednesday,
November 29, 1989
1:00 pm
PHONE CALL FOR THE PRESIDENT
FROM:
JERRY WEINTRAUB
(213) 312-1301
Jerry Weintraub is requesting that the
President return his call
his office
did not know what the call was regarding.
FYI: Condi Rice received this morning from
Jerry Weintraub the US-Soviet tape
you requested. Condi will view the
tape this afternoon, and then send it
over for you to view.
it
11
Mr. Weintraub is concerned that some parts
joes
of the tape might need to be cut. Condi
will view the tape and then make that
decision.
by
3/4th
Bridget Montagne
3:30 Patty called - - told
Wuntrank Condi
& that POTUS had not
would be calling
seen tape -- Condi says
it needs cuttins by 4.
THE WHITE HOUSE
WASHINGTON
Wednesday,
November 29, 1989
1:00 pm
PHONE CALL FOR THE PRESIDENT
FROM:
JERRY WEINTRAUB
(213) 312-1301
Jerry Weintraub is requesting that the
President return his call
his office
did not know what the call was regarding.
FYI: Condi Rice received this morning from
Jerry Weintraub the US-Soviet tape
you requested. Condi will view the
tape this afternoon, and then send it
over for you to view.
Mr. Weintraub is concerned that some parts
of the tape might need to be cut. Condi
will view the tape and then make that
decision.
Bridget Montagne
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
03. Note
Handwritten notes of Presidential Phone call with Jack
11/29/89
(b)(6)
Brooks Re: various issues [redaction of personal
information] (1 pp.)
Collection:
Record Group:
Bush Presidential Records
Office:
Office of the President
Series:
Daily Files
Subseries:
WHORM Cat.:
File Location:
Wednesday, November 29, 1989
Date Closed:
10/27/2009
OA/ID Number:
90527-014
FOIA/SYS Case #:
2009-0166-S
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
PRM Removed as a personal record misfile.
Presidential Phone Calls
the Photocopy
George EF Handwriting
DATE:
11-29-89 TIME:
incoming/outgoing
WITH:
Tach Broohs, Mc
SUBJECT:
(b)(6)
Photocopy from George Bush Presidential Library
FOLLOW
Joch: UP: "Cheney doing better"
caveat Pol. a Hungay -
diep-
of
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
04. Note
Handwritten notes of Presidential Phone call with JAB
11/29/89
(b)(1)
[James A. Baker, III] Re: Mitterand (1 pp.)
Collection:
Record Group:
Bush Presidential Records
Office:
Office of the President
Series:
Daily Files
Subseries:
WHORM Cat.:
File Location:
Wednesday, November 29, 1989
Date Closed:
10/27/2009
OA/ID Number:
90527-014
FOIA/SYS Case #:
2009-0166-S
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
PRM. Removed as a personal record misfile
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
05. Note
Handwritten notes of Presidential Phone call with JAB
11/29/89
(b)(1)
[James A. Baker, III] Re: various issues (2 pp.)
Collection:
Record Group:
Bush Presidential Records
Office:
Office of the President
Series:
Daily Files
Subseries:
WHORM Cat.:
File Location:
Wednesday, November 29, 1989
Date Closed:
10/27/2009
OA/ID Number:
90527-014
FOIA/SYS Case #:
2009-0166-S
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
PRM. Removed as a personal record misfile.
Presidential Phone Calls
/
11-29-89
950
50
DATE:
TIME:
9
incoming/outgoing
WITH:
Breach
SUBJECT:
Torced hand them
Robson dame Jach to get
out last meal
Spoke again yesday
Tahn
Robson had lun have
yes day
Photocopy from George Bush Presidential Library
We think on 2-3 days bill
leave. - (no construct through)
FOLLOW UP:
Legally - can't from lin
all SAL legisl. said is for
Z years - Seediver is Jake
legislation -
4
hourst somehat durb,
arrogant"
Bush Library Photocopy
George Bush Handwriting
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
November 28, 1989
REMARKS BY THE PRESIDENT
DURING PHOTO OPPORTUNITY
The Oval Office
12:10 P.M. EST
Q
How about the summit, Mr. President?
THE PRESIDENT: Well, I'm glad you asked that.
Q I mean, it's no longer a get-acquainted. It has a
larger dimension, doesn't it, and you're going with concrete
proposals? or is that an assumption?
THE PRESIDENT: Well, I think, Helen, when I defined what
I intended, I said that there's no set agenda; prepared to talk about
a wide array of issues. And that's still exactly the way it's going
to be. And there is all kind of hyped speculation on the part of
some that it's going to be different. And I'm glad to get that
question because we're together, our team, solidly together, prepared
to talk about anything President Gorbachev wants to talk about, and
his able team.
But it is not going to be an agreement that surprises our
allies. We're part of an alliance and that alliance is very strong.
And it's going to be strong after this meeting because I'm not going
to surprise them. So the surprise will be, if you're looking for a
surprise, there won't be a surprise. That may come as a surprise.
Q
No. The question is, you have the caveats that you
will inform NATO, but aren't you going with anything in your hand,
anything concrete? I mean, are you going to just sit there and
listen?
THE PRESIDENT: No. We'll have a wide array of areas
where we think we can improve relations. We've got -- I'm very
concerned about events in Central America, and I will be urging Mr.
Gorbachev to do what they should have done some time ago -- cease
support for those who are fueling revolution, exporting it in this
hemisphere.
I had a call today, incidentally, from President Arias of
Costa Rica, and I don't think I'm blindsiding Mr. Gorbachev by this,
but I will raise with him, at Arias' request, the fact that the
Soviet Union should stop feeding Fidel Castro, who Mr. Arias tells me
is directly responsible for the export of revolution through
supporting the FMLN. And that was a direct request from the Nobel
Peace Prize winner.
So, of course, we're going to raise other subjects
ourselves; go there with ideas in my mind, following up on what the
Secretary did in a very constructive way in his meeting with Mr.
Shevardnadze.
So it's -- the thing I wanted to shoot down, though, is
this kind of frantic speculation that there is going to be -- based
on crazy --
Q
Well, isn't it natural --
THE PRESIDENT: Yes, it's natural. But I want to have
MORE
- 2 -
done it now --
Q
-- for troops cuts now that there's such a change?
THE PRESIDENT: We don't want to get out ahead of our
allies. And Secretary Cheney is taking a look at defense
requirements and so -- but that's a good subject because I am not
going to enter into an arms control agreement.
Now, if we want to talk in a general way with the Soviet
leaders about our aspirations for how a defense system will look 10
years from now, of course, we'll do that; of course, we want to do
it. We want to see far less than 15 percent, 17 percent of the Gross
National Product of the Soviet Union spent on defense. And,
obviously, we'll talk about that, Helen. It's very important we talk
about it.
But that's not what I'm referring to when I talk about
euphoric expectations of some deal. There isn't going to be such a
deal. It takes two to make a deal.
Q sir, is one of the ideas you're carrying with you
there you just talked about ideas -- the idea of having lower --
much deeper cuts in conventional forces than you talked about when
you were in Brussels?
THE PRESIDENT: As I say, it takes two. We need to get
in there and discuss his plans with him and not tie the Alliance up
by unilateral commitments.
Q -- but you're willing to talk about deeper cuts than
you've talked about before?
THE PRESIDENT: I'm willing to talk about anything.
That's what the meeting is about. That's why I viewed it as a
meeting where we can discuss anything without a fixed agenda.
Q Mr. President, the events in Eastern Europe seem to
be unfolding largely on their own. As President, do you think that
you should have a major role in shaping the developments, or do you
think that Europe should take the lead?
THE PRESIDENT: I think that the lead is being taken by
the peoples in these countries. And I have talked, incidentally, to
every single member of NATO, and I don't want to sound self-centered
here, but almost every one of those leaders told me, we think the
United States is handling this properly. We appreciate the way
you're handling these changes, the prudent approach you are taking.
And it came over and over again.
I got on that phone right there to every single prime
minister or president in NATO. So I feel that they are behind us in
our approach. And I think what's happening in Czechoslovakia, what
has happened and will continue to happen in Poland, what's going on
in the GDR and Hungary comes from the people. It doesn't come from
somebody halfway across the world dictating how fast change should be
or what change should encompass.
We've spelled out in speech after speech a broad
perspective of how we would like to see the world evolve; talked
about it months ago -- with very little attention. But our allies
understood it. They understood it very well when we talk about a
Europe whole and free, or when I said in an interview to David Frost,
yes, that Berlin will come down in my presidency.
But that I think we're handling it about right. And I
say that based on the input from our allies. And we are part of an
Alliance, and that Alliance is going to stand. And it is very
important that they know that I'm not going to go off and prematurely
jump out there and try to grandstand by committing them to something.
That's not the way you keep an alliance strong, nor is that the way
you effect permanent change either.
MORE
- 3 -
Q
Mr. President, you said there won't be a deal in
Malta. There have been reports, though, that you would propose to
President Gorbachev going below the 275,000 troop ceiling for the
U.S. and the Soviet Union.
THE PRESIDENT: I've seen the stories about that.
Q Are they true?
THE PRESIDENT: No. I've told you that we don't go there
with specific proposals. If we want to discuss something of this
nature, we'll discuss it. But that's what I want to shoot down.
There are no arms control proposals. In writing I have made clear to
Mr. Gorbachev -- in my own handwriting, so he knows it comes from me,
not from the bureaucracy - that this is not a summit for arms
control agreement.
We've got a meeting set, a summit set, in which we will,
after consultation with our allies, move forward. So I don't think
there's any misunderstanding on that.
I read some copy here about what one of these Soviet
spokesmen said and it sounded to me like we're pretty much on the
same wavelength. The lead was a little off -- I don't want to tell
you whose this was, but I -- the lead was different than what the
spokesman said.
Q
The spokesman said you can't believe Gorbachev would
got to a summit just to get acquainted.
THE PRESIDENT: The spokesman said, they do not expect
formal agreement to emerge from shipboard -- the same one when you
say he doesn't want to --
Q Right.
THE PRESIDENT: -- let's see, "Gorbachev is not the sort
of man for a simple get-acquainted session."
Q
Yes.
THE PRESIDENT: "Ready for serious talks." I'm ready for
serious talks. But there is no agenda. I don't think we're apart.
Do you, Jim? You're dealing with them day in and day
out.
SECRETARY BAKER: No. No, indeed.
THE PRESIDENT: But that's my point. I'm just trying to
deflect this kind of comment that somebody writes. I mean. yes,
Helen, there's a lot of interest in this meeting. And I can
understand why people are speculating. But I'm going to be there.
I'm going to be attending this meeting.
Q
Do you have a reaction to --
2
What about Kohl's proposal?
Q
Do you have a reaction to the Kohl proposal for
reunification?
THE PRESIDENT: I expect to talk to him soon, and I'd
prefer to wait to hear from him exactly what it is.
Q You talked about your concern about events in
Central America, Mr. President.
THE PRESIDENT: Absolutely.
2
You've received assurances from the Soviets that
MORE
- 4 -
they'd cut off the arms supply. Do you feel they --
THE PRESIDENT: They haven't cut off arms suppy to Cuba.
And as Mr. Arias said, there is one person most responsible for
support of the FMLN trying to deny democracy to Central America, deny
democracy to El Salvador - and that is Fidel Castro. And at the
same time he coupled Ortega in with that.
So this -- we've got to discuss these issues, and I think
the Soviets are prepared to talk about it. If they want an agenda
item, if they want a statement from the President, I'm not the sort
of man that will go there and not raise it. Now you've got a
headline.
Q
Well, are you the sort of man who will protest the
raiding of churches in Salvador?
THE PRESIDENT: I'm the sort of man that will get the
facts. And if there's any abuse of the rights of Americans, I will
strongly protest it. And if, indeed, Americans are involved in
trying to overthrow a government by arms, I will not look with favor
on that, either. So, yes, I will look to the human rights and to
the fact that any American is accorded proper treatment by the
authorities; proper justice. And, yes, I will see to that. But I
will not condone overthrowing a -- trying to overthrow an elected --
freely-elected, certifiably free elections of a government of that
nature. I'm not going to do that. We're moving towards democracy in
this hemishere and this call from Oscar Arias was very -- made a big
impression on me.
THE PRESS: Thank you.
THE PRESIDENT: Thank you all. See you in Malta.
END
12:20 P.M. EST
IN P.
an /send photocopy
baying
wall anticle to NFB
"Personal"
350
use
Photocopy from George Bush Presidential Library
Document Originally
Attached to
Following Page
Bush Library Photocopy
George Bush Handwriting
THE WHITE HOUSE
WASHINGTON
DATE:
11-28-89
FROM THE PRESIDENT
To:
Nick Brady
Re: Danny Wall
The attached article from Regardie's
(not hte most sterling of journals
admittedly) does not help
Danny Wall's case in any way.
gb
P
send photocopy
wall anticle to NEB
"Personal"
B- / COPY of this please
AT LAST, WE'VE
FOUND THE GUY TO
BLAME FOR THE
SAVINGS AND LOAN
UP AGAINST
FIASCO.
DANNY WALL
HE WROTE THE
FOR DANNY WALL, JULY 1, 1987 WAS A DAY
staff who doesn't like me," he says. "It's sick."
of rockets' red glare and bombs bursting in air.
Hohlt had cultivated Wall years before, when
RULES THAT
On that day he was sworn in as the chief regu-
Wall was working for Senator Jake Garn on the
lator of the nation's savings and loan industry.
Senate Banking Committee. A key staffer of the
Without a doubt, it was a major career move
committee says that Hohlt virtually camped out
WRECKED THE
for a staff director of a Senate committee. So, in
in Wall's office. "Rick Hohlt always felt that he
his trademark three-piece suit and shiny ankle
was virtually a part of Jake Garn's office," says a
SYSTEM, THEN HE
boots, his tie wound tightly around his neck,
former high-level official of the league. "It was
Wall waited expectantly, surrounded by family
an incestuous sort of thing. He was family."
IGNORED THE
and friends, for the ceremony to begin. But
The family includes Wall, who's been de-
fireworks, in the form of an unexpected tele-
scribed as a "surrogate son" of Garn's, and Wall's
CRISIS UNTIL THEY
phone call, interrupted his celebration.
wife, Alvina, Garn's personal assistant. And in the
Within minutes the caller had one of the
end the family wreaked more havoc on the na-
bank board's secretaries on the verge of tears.
tion's banking system than any since Ma Barker's.
THREW HIM OUT
"I'm sorry, sir, but he's with his family about
When the final bill for the savings and loar.
to take the oath," she said apologetically.
debacle is tallied, it would be appropriate for
OF OFFICE-
"I don't give a goddamn who in the hell he's
Wall to present it to the taxpayers. Many people
talking to," the caller snapped. "I want him
can be blamed for the colossal greed fest that
AND THEN,
right now."
destroyed the industry, but Wall's role was
Wall was dutifully summoned. Some of the
bigger than any other villain's, in part because
BELIEVE IT OR NOT,
bank board's staffers were astonished that he
he styled himself as the sheriff who was going
took the call; in their minds it was proof that he
to clean up Dodge City. He was at the head of
was controlled by the very industry he was
the parade when the industry was deregulated,
HE GOT A BOUQUET!
supposed to police, for the caller was Richard
he was at the head of the parade when the
Hohlt, a lobbyist for the U.S. League of Savings
industry exploded like a Roman candle, and,
Institutions, the savings and loan industry's
remarkably, he's still at the head of the parade
most powerful trade association.
today, as the government sifts through the rubble.
Then again, anyone who'd observed Wall
There's no reason to believe that Wall cashed
BY MICHAEL
over the years wouldn't have been surprised. In
in on the industry's collapse; after all, Wash-
the dark corridors of federal Washington, where
ington isn't Wall Street. No, the Danny Wall
BINSTEIN
influential lobbyists can detonate legislative ex-
story is, like so many others in the nation's
plosions, Hohlt had often boasted that he con-
capital, the tale of a government bureaucrat
trolled Wall. Once, in a euphoric outburst, he ex-
who did some favors for his friends in return
claimed to several senior officials of the league,
for career advancement. The difference in Wall's
"When it cornes to Danny Wall, he doesn't take
case-and it isn't an insignificant one-is that
ILLUSTRATION
a piss unless I give him permission."
the favors have so many zeros attached to them.
Hohlt denies making the statement. "It
"There's no one else in the history of the U.S.
BY PHIL HULING
sounds like something from someone on the
government who we could say, by his personal
62 DECEMBER 1989
o
LEDGER
CONFLICTS OF INTEREST
judgment, precipitated billion-dollar losses to tax-
Airy's police department had been assigned to
gress in
payers," says Jim Leach, a Republican representa-
patrol Washington.
they W
tive from Iowa.
Wall was more of a shill than a supervisor of
The
Wall, an urban planner-turned-bank czar, stum-
the industry. When grave trouble beset thrifts as a
most c)
bled through the darkest financial crisis the Unit-
result of deregulation, he denied the problems
banisli
ed States has faced since the Great Depression.
and accentuated the positive. Wittingly or not, in
Froi
"Give me something that's logical and straightfor-
the process he bought the time that the league
the st
ward, and I'm in great shape," he says. "Is the law
wanted, which ensured that the taxpayers, and
top of
logical and straightforward? No. Is accounting log-
not the industry, would pay for the bailout.
import
ical and straightforward? No."
Wall unceasingly underestimated the dimen-
than ti
$99 DANNY
in Wa
and in
Talk about guys who are going
ity is C
places! From 1983 to 1986, as the
'Wall came in
burea
staff director of the Senate Banking
Committee, Danny Wall picked up
Mr. W
and continued the pattern of
enough frequent-flyer coupons to
M.D:
keep his head in the clouds for years.
the fi
Of course, the government was
South
sweeping everything
monitoring his every move. Under
His r
the Ethics in Government Act of
Scout
under the rug,' says a government
1978, he was required to list where
callir
he went, why he went, and who
suit i
paid for the trip, along with any
"F"
official. 'I was never
gifts he received from any one
strai
source that had an aggregate value
raise
sure whether I was looking at
of more than $99. He didn't have to
or a'
list entertainment expenses-such as
was
expensive dinners, theater tickets,
we
deliberate deception
and bar bills-unless they amount-
exp:
ed to more than $250 from any
Y
or ineptness.'
one source in any one year. During
er,
the time he was the staff director
his 1
of the Senate Banking Committee,
dis
Wall listed no gifts worth more
inst
than $99-just lots of travel with
wo
Was Wall qualified to regulate the nation's thrifts?
sions of the crisis. He insisted that the FSLIC, which
friendly trade groups and lots of
urb
He believes that his college major in architecture
insured the deposits in the S&Ls, had the money to
related expenses. Due to gaps in
ide
and minor in engineering (North Dakota State
cover the losses at a time when it was bankrupt,
the reporting, we pieced together
University. Fargo) him with the finan-
and he blamed the media for creating a climate of
the trips as best we could.
and
cial background he required for the job. Some
fear. More than two years ago, when the industry
people who've worked with him disagree; one of
1983
ing
was losing about $1 billion a month, he announced
Inc
his fellow regulators continues to marvel at Wall's
that "this agency, this system, and this industry
FEBRUARY 23-24, SAN FRANCISCO
Law & Business Banking Expansion
boc.
belief that "everything would be all right if the
are standing on the threshold of a new and bright-
in the 80s, seminar
1
auditors stopped making me put all those liabili-
er future." Since then Congress has authorized a
Airfare, related expenses
tor
ties on the balance sheet."
$160 billion bailout that many government insid-
FEBRUARY 24-25, WASHINGTON
ear
The American people never got a chance to hear
ers believe will ultimately cost $300 billion.
American Bankers Association event
bri
the Danny Wall story spelled out in all its gory
Wall ignored the appeals of the bank board's
Related expenses
bu
detail. Because he was installed in his new job as
examiners and kept a politically wired S&L open
MARCH 22, MIAMI
tr:
the director of the new Office of Thrift Supervi-
for two years after it had been judged to be unsafe
American Insurance Group
HI
sion without confirmation hearings-Garn's way
and unsound. His failure to act cost the nation's
annual seminar
cia
of protecting him-his critics were effectively
taxpayers nearly $3 billion.
Airfare, related expenses
tin
muzzled. Had hearings been held, here's what the
Once the bailout started, Wall ran amok with
MARCH 22. SAN FRANCISCO
jo}
nation's taxpayers would have learned:
the government's credit card. In December 1988,
Financial analysts conference
CC
Wall worked hand in hand with lobbyists to
in what might be called a year-end fire sale, he
Airfare, related expenses
th.
write the declaration of independence for Ameri-
dumped 75 distressed thrifts in hastily arranged
MARCH 23-24. SAN DIEGO
We
ca's S&Ls, a law that left the nation's regulators
deals that gave wealthy businessmen billions of
Dealer Bank Association
outmanned and outgunned. It was as if Mount
annual meeting
fo
dollars in tax benefits. What's more, he kept Con-
Airfare, related expenses
no
64 DECEMBER 1989
PHOTOGRAPH: USA TODAY/MARK ANGELES; ILLUSTRATION: LINDA BLECK
CONFLICTS o F INTEREST
gress in the dark about the details of the deals as
Washington to run his Senate staff. Wall's wife,
MARCH 24, WASHINGTON
they were being cut.
Alvina, eventually became Garn's secretary. And
Independent Bankers Association event
Thanks to a nifty power play by Garn, Wall's
when Garn was named the head of the banking
Airfare, related expenses
most dubious record of achievement won him not
committee, Wall became its staff director.
APRIL 19-23, MAUI
banishment from the government but a bouquet.
The Reagan Revolution that had boosted Garn's
BALCOR/American Express conference
From one perspective, the Danny Wall saga is
Airfare, related expenses
fortunes had also stirred the juices of a number of
the story of an average civil servant who rose to the
industries that were eager to get out from under
APRIL 29-30, COLORADO SPRINGS
top of the federal government on the wings of an
the yoke of federal control. Among the hungriest
Securities Industry Association event
Airfare, related expenses
important senator and a rich lobby. But it's more
was the savings and loan industry. Its more aggres-
than that. It's a testament to an enduring fact of life
sive executives wanted to be free of the antiquated
APRIL 30-MAY 2. PALM SPRINGS
in Washington: that even in a government as vast
Wells Fargo Bank Group conference
regulations that forced them to keep their consid-
Airfare, related expenses
and impersonal as ours, one in which responsibil-
erable assets in stodgy investments.
ity is often submerged in the sluggish waters of the
MAY 13. CHICAGO
Garn agreed to push for deregulation and hand-
bureaucracy, one man can make a difference.
Whittle Raddon Motley & Hanks
ed the ball to Wall, who handed it to the smartest
seminar
people he knew when it came to thrifts: the indus-
Airfare, related expenses
Mr. Wall Goes to Washington
try's lobbyists. Wall later compared himself to a
MAY 16. WICHITA
M. Danny Wall (the M stands for Melvin) is among
mere "lab assistant" in the creation of the Garn-St
Kansas Savings & Loan League
the finest sons ever produced by New Effington,
Germain Depository Institutions Act, the legisla-
annual conference
South Dakota, a town of less than 300 people.
tion that emancipated S&Ls; to sustain the meta-
Airfare, related expenses
His parents ran a grocery store. He was an Eagle
phor, the U.S. League of Savings Institutions was
MAY 17-18. LITTLE ROCK
Scout who at one time thought he had a higher
Dr. Frankenstein. The league's point man on the
Arkansas Bankers Association event
calling-to the ministry-but he dropped the pur-
bill was Hohlt, a Midwesterner who'd served as an
Airfare, related expenses
suit in high school.
aide to Richard Lugar, both when he'd been the
JUNE 1-2. PALM BEACH
"From a very early age I learned that I had to be
mayor of Indianapolis and later when he'd become
Sang & Stuber seminar
straight, very proper-and I was," says Wall. "I was
Airfare, related expenses
a senator. Hohlt had also worked for Reagan's 1980
raised in a very Christian family, not charismatic
campaign (he considers himself to be a close friend
AUGUST 23-24, LOS ANGELES. DALLAS
or anything, but a very Christian family. Honesty
of Lee Atwater's). After Reagan's election he'd de-
National Association of Mutual
Savings Banks seminars
was the principal point of our training. It's what
cided to put his connections to use and had gone
Airfare, related expenses
we experienced in our own family and what we
to work as a lobbyist for the league.
SEPTEMBER 26-27, MINNEAPOLIS
experienced in our community."
Hohlt quickly latched on to Wall, and in the
Women in Finance meeting
Young Danny showed some promise as a butch-
months that followed sometimes talked to him a
Airfare, related expenses
er, one of his duties in the family's store. And after
dozen times a day. (At the same time, another of
OCTOBER 5-6, DALLAS
his father gave him a big, abandoned outhouse, he
the league's lobbyists, James "Snake" Freeman,
Bank Marketing Association meeting
discovered that he had a gift for carpentry; he
was wining and dining Fernand St Germain, the
Airfare, related expenses
installed lofts and lookouts and so enjoyed the
chairman of the House Banking Committee.)
OCTOBER 8-13, HONOLULU
work that in college he studied architecture and
In 1982, bowing to the wishes of the league,
American Bankers Association
urban planning. He believes that the latter was
Wall and Garn drafted the legislation that allowed
annual convention
ideal training for his job at the bank board.
thrifts to reinvent themselves. After it was passed,
Airfare, related expenses
"Urban renewal is buying land, clearing property,
S&Ls were no longer confined to financing home
OCTOBER 16, MAUI
and selling land," he notes. "What have we been do-
mortgages. They were free to invest in all manner
National Savings & Loan League event
ing here? We've been acquiring assets, clearing assets.
of get-rich-quick schemes, and they did it with a
Airfare, related expenses
I never worked in a bank per se, but perhaps some-
vengeance; they got involved in the futures mar-
OCTOBER 20-21, OMAHA. KANSAS CITY
body working in a bank would be less prepared."
kets, commercial lending, shopping centers, horse
Nebraska Credit Union annual meeting,
In 1964 Wall was appointed the executive direc-
U.S. Credit Union inspection
sperm banks, windmill farms, fast-food restau-
Airfare, related expenses
tor of Fargo's urban renewal agency, and in the
rants, junk bonds, and corporate takeovers. Almost
early 1970s Salt Lake City beckoned. It was on the
OCTOBER 24, BOSTON
before the ink on the bill was dry, a parade of
brink of winning its first HUD-assisted program,
Northern New England School of
rogues had crashed the deregulation party, buying
Banking event
but only if it could hire a city planner who had a
up charters for a song and turning their new acqui-
Airfare, related expenses
track record. While the city fathers huddled at
sitions into personal piggy banks.
OCTOBER 30, SAN FRANCISCO
HUD's regional headquarters in Denver, a HUD offi-
William O'Connell, the president of the league,
American Financial Services
cial recommended Wall for the job. Wasting no
called Garn-St Germain "a major step forward in
Association event
time, they called him and virtually offered him the
preserving and strengthening the savings and loan
Airfare, related expenses
job on the spot. Jake Garn, a conservative city
system." But in a very short time, it looked more
NOVEMBER 14-15, SAN FRANCISCO
commissioner, was one of the city fathers. Later
like the thrift industry's suicide pact.
U.S. League of Savings Institutions
that year he was elected mayor, and by 1975 he'd
event
won a seat in the U.S. Senate. He and Wall had
Airfare, related expenses
To Have and To Hohlt
formed a close friendship over the years, so it was
NOVEMBER 20-21, NEW YORK
Garn-St Germain was a triumph for Wall and
no surprise that he implored Wall to move to
GlobeCom seminar
Hohlt, and their relationship strengthened. Some
Airfare, related expenses
REGARDIE'S 65
CONFLICTS OF INTEREST
staffers on the banking committee wondered
1984
president's trips and could easily arrange for spe-
what Wall, a straitlaced, soft-spoken bureaucrat,
JANUARY 23, ORLANDO
cial treatment of savings and loan executives.
Florida Bankers Association event
saw in Hohlt, a rather coarse lobbyist who talked
But while Hohlt's tactics gave him some influen-
Airfare, related expenses
about "rolling" people. Hohlt was once nearly
tial friends, they also gave him some enemies. "He
thrown out of the Treasury building by the Secret
FEBRUARY 16. SAN FRANCISCO
was always kind of sneaking around, trying to
Law & Business, Inc. event
Service after he'd engaged in a screaming match
pick up tidbits of information and make himself
(Harcourt Brace Jovanovich)
with a top official.
sort of essential," recalls a former Reagan adminis-
Airfare, related expenses
"Rick is a very personable fellow," says Wall.
tration official. "I found him a very oily, untruthful
MARCH 12. PALM SPRINGS
"He's someone I find very easy to get along with.
sort of fellow. I intensely dislike him, and I don't
Lillich McHose & Charles event
I'm in a very small minority of people that can
say that about a lot of people."
Airfare, related expenses
MARCH 26. SALT LAKE CITY
National Association of
DON'T WORRY, BE HAPPY
Independent Insurers event
What Danny Wall Was Saying While the Industry Sank Into Oblivion
Airfare, related expenses
+20
MARCH 27, NEW ORLEANS
Independent Bankers Association event
"I'm candid to a fault. May 1987
"If you, as a home owner, had to pay
Airfare, related expenses
0
your entire mortgage payment tomorrow,
MARCH 28, MIAMI
you might be theoretically insolvent.
American Bankers Insurance Group,
You're not really insolvent,
Inc. event
"This agency, this system,
nor is the FSLIC." -June 1988
-20
Airfare, related expenses
and this industry are
standing on the threshold of
"Without question, we have the resources for
APRIL 2. MONTEREY
three or four years." -June 1988
a new and brighter future."
National Association of Home Builders
event
-40
-August 1987
"I have по reason to change
Airfare, related expenses
my position that we can
manage with the resources
APRIL 9, SALT LAKE CITY
-60
"The present problems in the thrift
we have." -June 1988
U.S. League of Savings Institutions
event
industry are manageable with the
Airfare, related expenses
resources that will be available to the
FSLIC over the next few years."
"Don't get caught up that
MAY 2. NEW ORLEANS
-80
-May 1988
the industry is some sort
Bank Administration Institute event
of dinosaur." May 1989
Airfare, related expenses
MAY 7. SAN DIEGO
1985
1986
1987
1988
1989
Bank Marketing Association event
Wall becomes the
The industry receives
Airfare, related expenses
chairman of the bank board.
a $160 billion bailout.
Source: Federal Home Loan Bank Board, GAO audited
AUGUST 7. SAN DIEGO
U.S. League of Savings Institutions
event
countenance him. Perhaps it's because I can get
Hohlt is sometimes accused of being duplicitous.
Airfare, related expenses
past the bluster."
In 1986 and 1987 the Treasury Department was
SEPTEMBER 7. CHICAGO
"I think Danny Wall is a close personal friend,"
attempting to raise $15 billion to recapitalize the
CNA Group event
Hohlt."He's been someone I've talked to about
FSLIC, a move that the league opposed. George
Airfare, related expenses
my father's health. He's been someone I've intro-
Gould, a former under secretary of the Treasury,
SEPTEMBER 14. SAN FRANCISCO
duced dates to. He's been someone I've socialized
was warned not to meet with Hohlt about the effort,
University of San Francisco event
with on many occasions. At times I would' con-
sources say. Gould was told that Hohlt was decep-
Airfare, related expenses
sidered him a very close and confidential friend
tive and difficult to deal with. "Your predecessor
OCTOBER 8. CHICAGO
and source of stability. There are few people you
wouldn't meet with [Hohlt and his superiors at the
Whittle Raddon Motley & Hanks event
run into in this town with the right basics. Call it
league] and practically had them carried out by the
Airfare, related expenses
corny: to find a person who's sincere, who'll go out
Secret Service after one stormy session," he was in-
OCTOBER 15. LEBANON. NH
of his way to be helpful."
formed. Hohlt denies that the incident took place.
New England School of Banking event
Others in government believe that Hohlt is less
Gould met with Hohlt and other officials of the
Airfare, related expenses
concerned with basic values than he is with access
league anyway. Later, however, Gould learned that
OCTOBER 24-25. NEW YORK
and information, the major currencies of Washing-
Hohlt had been covertly undercutting the Trea-
ESI, Morgan Stanley event
ton. He used his expense account to procure every-
Airfare, related expenses
sury's efforts despite his assurances that he and
thing from theater and football tickets to expensive
the league favored the recapitalization. Word fil-
OCTOBER 31. BIRMINGHAM
meals for politicians; a former high-ranking official
Alabama Bankers Association event
tered back to the Treasury that Hohlt was brag-
of the league claims that he even bought groceries
Airfare, related expenses
ging that the league was going to "roll Treasury.
for contacts on the Hill. He was invited to state
They want $15 billion. We're going to roll them
NOVEMBER 28. KANSAS CITY
dinners. A source says that he sometimes assisted
Financial Institutions Investment
and they're only going to get $5 billion."
Institute event
the White House's advance men in planning the
"I found that they were meeting with me and then
Airfare, related expenses
66 DECEMBER 1989
CONFLICTS
F
INTEREST
DECEMBER 5. MINNEAPOLIS
going to the Hill and totally misquoting me and/or
a new desk phone because the color of his didn't
NorWest event
just totally fabricating some story about the Trea-
match the shoulder rest. He loved to redraw organi-
Airfare, related expenses
sury's position," recalls a former Treasury official. "I
zational charts. Perhaps in the mind of an archi-
DECEMBER 6, TAIPEI
finally closed off access to my part of the Treasury."
tect appearance is everything, but his staff was
USA-ROC Economic Council event
Still, Hohlt could be effective. After steering the
dismayed that serious problems were festering.
Airfare, related expenses
deregulation bill through Congress, he schemed
One of Wall's first requests was to call for a
1985
to have Wall appointed the chairman of the bank
thorough inspection of the building. With engi-
JANUARY 24, HOUSTON
board. The official who had the job, Edwin Gray,
neers in tow, he noted the changes he wanted made.
National Association of Home Builders
was beginning to cause some problems for the
"I proceeded with the building supervision people
event
industry. Though he was a Reagan loyalist who'd
just to try to get things going in sprucing up things
Airfare
essentially been put into the job by the league,
so that it was a more businesslike environment,"
JANUARY 26, MIAMI
he'd begun to comprehend the magnitude of the
he explains. "There were letters missing from the
Hogan Systems seminar
Airfare, related expenses
problem and to talk publicly about it. The league
sign downstairs. Nobody paid any attention to
needed a new man at the top.
that." Such seemingly small acts, he believes, con-
FEBRUARY 7-8, CHICAGO
Gray says that Hohlt was passionate and obses-
vey to the staff that "things are happening."
Chicago Mercantile Exchange event
Airfare, related expenses
sive about securing the job for Wall. As Gray recalls,
Another change at headquarters was the pres-
just about every day Hohlt would telephone his of-
ence of Hohlt, who called Wall incessantly and
FEBRUARY 13, NORTH CONWAY, NH
became a frequent visitor. The agency's staffers
New England League of Savings event
fice or home and ask, "What did you do for Danny
Airfare, related expenses
today? What can you do for him tomorrow?"
were stunned by Hohlt's hold on Wall. The lobby-
The main stumbling blocks were the Treasury
ist was permitted to bypass the bank board's sign-
FEBRUARY 14, HONOLULU
SMU Graduate School of Banking,
Department, the White House personnel office, and
in procedure, and he had a direct line to Wall's
assembly for bank directors
Donald Regan, the White House chief of staff, who
office. He got Super Bowl tickets for Wall and his
Airfare, related expenses
had his own candidate for the job. Regan's choice
son in 1983. Still, at first Wall won plaudits for
MARCH 5-6, PARK CITY, UTAH
was Lee Henkel, a Republican lawyer who'd been
being the calm in the center of the storm; in the
Midwinter housing conference
appointed a board member in 1986 and was in line
summer of 1987 the scope of the crisis was appar-
Airfare, related expenses
to succeed Gray. Henkel was strongly supported
ent only to relatively few people. But as evidence
MARCH 8-9, SAN ANTONIO
by several senators who'd received large contribu-
that the industry was melting down became too con-
Independent Bankers Association
tions from Charles Keating, a savings and loan ex-
spicuous to ignore, many people began to wonder
convention
ecutive from Arizona. Henkel, who had undisclosed
whether he wasn't being too calm. His "don't worry,
Airfare, related expenses
financial ties to Keating and had voted on matters
be happy" pep talks to the government's auditors
MARCH 15, SAN FRANCISCO
left them speechless; Gray had left office scream-
Law & Business seminar
that could potentially have benefited him, was forced
to resign from the board in the spring of 1987.
ing fire, and Wall couldn't even smell the smoke.
Airfare, related expenses
By then the Iran-contra scandal had also removed
Wall held his first face-to-face meeting with
MARCH 19. MIAMI
officials of the General Accounting Office, which
American Bankers Insurance Group
Regan, so only the Treasury Department and the
event
White House personnel office needed to be per-
was responsible for auditing the FSLIC's books, in
Airfare, related expenses
suaded. Both believed that Wall wasn't qualified
the late summer of 1987. The GAO's auditors left
MARCH 28, LOS ANGELES
for the job, that he was a lightweight when the
the meeting fearing that Wall was papering over a
American Bar Association event
times demanded the best brain in the business.
potential catastrophe. "It would've helped if he'd
Airfare, related expenses
"I-pushed hard to get a bank board chairman
taken Accounting 101 and 102," deadpans a senior
MAY 10. OGDEN, UTAH
who had lots of administrative experience because
government banking official, who recalls the ac-
Utah League of Insured Savings event
we had to rebuild the agency," says a former high-
counting "breakthrough" that Wall once adver-
Airfare, related expenses
level administration official. "When Ed Gray left,
tised as the solution to the crisis: a wild scheme
MAY 21, NEW ORLEANS
the organization had bad morale and a lot of depar-
that involved selling the FSLIC's future revenues at
National Association of
tures. I also thought there were some complicated
a discount to raise cash immediately. Several high-
Consumer Credit event
financial issues involved in this."
level auditors likened the idea to a Ponzi scheme
Airfare, related expenses
In the end, however, an old maxim proved itself
and pointed out that it violated the basic canons of
MAY 29, MINNEAPOLIS
to be true: It's not what you know, it's who you
accounting. Wall is said to have gone into a snit
Association of Bank Holding
when he was told that the idea wouldn't work.
Companies event
know that counts. Garn won the day for his loyal
Airfare, related expenses
lieutenant by personally prevailing on President
Wall also argued with auditors over why he had
Reagan and calling in some chits.
to book future obligations as losses. He refused to
MAY 31. RICHLAND, WASHINGTON
concede that an obligation incurred by the FSLIC
Washington Bar Association event
Airfare, related expenses
Chairman Danny
(such as rescue money that had been committed
over five years) should be booked as a loss when
JUNE 7. BOSTON
While Rome burned, Danny Wall redecorated. Or
Boston College Bank Auditing seminar
so it seemed to his staff.
the debt wouldn't be due until later. An auditor
Airfare, related expenses
When Wall took office he decided that the bank
compares the idea to a home owner who runs up a
board's headquarters needed a face-lift. So instead
$1,000 bill but refuses to budget for it because it
JUNE 16, SEATTLE
Federal Home Loan Bank of Seattle
of putting out financial fires, he did housekeeping.
isn't due until the end of the month.
annual meeting
He replaced and rearranged furniture. He ordered
Wall also tried to pull an accounting flim-flam
Airfare, related expenses
68 DECEMBER 1989
CONFLICTS OF INTEREST
on the House Banking Committee. In March the
FSLIC was broke-and yet Wall and his pals at the
AUGUST 6, SEATTLE
league continued to mislead the public. On March
National Convention of State Legislators
bank board called attention to an increase in capi-
Airfare, related expenses
tal at the nation's savings and loans but failed to
4, 1987 the league issued a broadside that called
reports that the FSLIC was bankrupt "outrageous."
AUGUST 20, TAMPA
note that the capital had come from the federal
Tampa Chamber of Commerce event
government, not from the thrifts themselves. With-
The report accused the GAO of "manufacturing a
Airfare, related expenses
out the government's money, the S&Ls' capital would
bookkeeping crisis to pressure Congress into pass-
AUGUST 28, NEW YORK
actually have decreased by almost $8 billion.
ing an excessively large FSLIC funding program."
Public Securities Association event
"The present bank board-particularly its chair-
That summer, in a speech before the National
Airfare, related expenses
man, Danny Wall-seems incapable of presenting
Press Club, Wall rallied the industry with the prom-
SEPTEMBER 6, SAN FRANCISCO
a straightforward story to the American public,"
ise that it "can count on Dan Wall" to emphasize
Dean Witter Reynolds training seminar
said the committee's chairman, Representative
the positive: to focus attention on the S&LS that
Airfare, related expenses
Henry Gonzalez. "The Congress and the public
were in the black. Wall disputed claims that the
SEPTEMBER 12, MINNEAPOLIS
don't need sugarcoated news releases distorting
FSLIC was insolvent through the end of 1988, and
Larkin Hoffman Daly & Lindgran event
the numbers. We need hard numbers, specific
he didn't concede that a taxpayer bailout would be
Airfare, related expenses
facts-the truth. This seems a short commodity
necessary until even later.
OCTOBER 30, ST. LOUIS
at Chairman Wall's Home Loan Bank Board."
Garn says that Wall deliberately underestimated
Deloitte Haskins & Sells Financial
By the fall of 1988, Treasury officials were con-
the cost of the bailout to avoid a panic. "We were
Institutes event
vinced that Wall's estimates of the depth of the
all trying to stop a run and ensure that people didn't
Airfare, related expenses
crisis were deceptive or flawed. Larry White, one
take their money out," he explains. "You couldn't
OCTOBER 31, SALT LAKE CITY
of the three members of the bank board, had
be in there and have a fire going and put gas on it."
Utah State University banking seminar
made his own internal estimates that contradicted
Wall blames the league and presidential politics
Airfare, related expenses
Wall's Pollyanna pronouncements and had become
for the numbers mess. "I think they were simply
NOVEMBER 3. DALLAS
Treasury's secret source in keeping tabs on Wall.
trying to buy their way past the next presidential
U.S. League of Savings Institutions event
election," he says of the league's strategy of denial.
Airfare, related expenses
Because he feared to be seen with Treasury offi-
cials, whom Wall regarded as the enemy, White
"I'm not defending it."
NOVEMBER 6-7, DALLAS
met with them in local dives where they weren't
Wall claims that he never wanted to engage in
First Texas Savings board of directors
event
likely to be spotted.
forecasts but was badgered to do so during a hear-
Airfare, related expenses
ing before the House Banking Committee in Sep-
NOVEMBER 7, SAN FRANCISCO
Odd Numbers
tember 1987. He says that when Fernand St
Law & Business seminar
The hardest question to answer about Wall was
Germain, then the committee's chairman, pres-
Airfare, related expenses
whether he truly didn't understand the severity of
sured him to estimate the size of the FSLIC's losses,
NOVEMBER 9, CORONADO, CA
the crisis or deliberately lied about it. In what
he buckled. "He kept pressing me until off the top
SMU Graduate School, assembly for
became a number-of-the-month game, his esti-
of my head I came up with a number," says Wall.
bank directors
mates of the industry's financial dilemma were
More than a year passed before Wall's estimate
Airfare, related expenses
consistently the lowest provided by an array of
matched the one he'd inherited from his prede-
NOVEMBER 19, ORLANDO
government and private forecasters. Intentional
cessor-a remarkable fact, considering that they'd
USA-ROC Economic Council conference
or not, his distorted view of reality caused confu-
both relied on the same analysts for data.
Airfare, related expenses
sion among the staff at the bank board, his fellow
"We were trying to put in a mechanism [to cal-
NOVEMBER 22, MIAMI
regulators, members of Congress, and financial
culate the losses], but it wasn't there," Wall says.
Barnett & Alagia financial seminar
experts: Moreimportant, it stalled the bailout pro-
"So we had to go into 1988 still building a mecha-
Airfare, transportation expenses
cess as the damage mounted.
nism to collect the numbers. We made that very
DECEMBER 9, NEW YORK
"He came in and continued the pattern of sweep-
clear. Now I understand people didn't hear it. and
National Council of Savings
Institutions event
ing everything under the rug," says a government
they don't want to acknowledge it. But obviously,
Airfare, related expenses
official who worked closely with Wall. "With all
I'm very frustrated by it. That's the fact. I didn't
1986
those examiners in the field, you don't have to be a
look at Ed Gray and make any assessment at all. I
mathematical genius to get a smell of the trend out
looked at the problem and said I don't know what
JANUARY 31. RENO
there." He adds: "I was never sure whether I was
the number is. But there wasn't one malevolent
National Association of Realtors event
Airfare
looking at deliberate deception or ineptness."
bone in my body."
"I was getting bum numbers from Dan," says
Despite his growing credibility problem. Wall
FEBRUARY 13. SAN FRANCISCO
former treasury under secretary Gould. "That's a
remained secure in large part because of his politi-
Hoover Institute, Stanford University
event
fact. This is sort of the core element. It put [the
cal patron, Jake Garn. Several senior Reagan ad-
Airfare, related expenses
crisis] into the taxpayer domain, and that's a big
ministration officials say that the notion of replacing
FEBRUARY 18. COLORADO SPRINGS
change when you go from something that the
Wall had crossed their minds, but they were quick-
Colorado Bankers Association event
industry, with a little pain, can handle to a knock
ly dissuaded by the prospect of confronting Garn.
Airfare, related expenses
on the taxpayers."
# "Danny was a surrogate son of Garn's, and all I
MARCH 5. MIAMI
Of course, putting the financial load on the backs
would do [by complaining] is alienate my relation-
American Bankers Insurance
of taxpayers is what the industry wanted all along.
ship with Garn," says a high-level financial official
Group event
By 1987 everybody in the world knew that the
in the Reagan administration. "And secondly, Garn's
Airfare, related expenses
70 DECEMBER 1989
CONFLICTS OF INTEREST
personal secretary was Danny's wife. Danny knew
fire sale. Since the market for deeply insolvent
MARCH 6, SALT LAKE CITY
Midwinter housing conference
every time I came to see Garn because his wife
thrifts is small and the likely buyers were sharp-
Airfare, related expenses
would walk me from the waiting room into Garn's
eyed financiers who knew the financial score, Wall
APRIL 7. MIAMI
office. So 1 was always concerned about anything
sweetened the deals by issuing government IOUs.
Ameri-First Savings & Loan directors
of that nature getting back to Danny, that I was
The result: hundreds of what were soon called
event
running to the Hill to tattletale about him."
"McDeals."
Airfare, related expenses
Then again, who would've replaced Wall? The
The FSLIC disposed of 205 thrifts in 1988, 75 in
MAY 20, ROCHESTER
bank board consisted of three members, all of
December alone, at an estimated cost of more
Bank Administration Institute event
whom were confirmed and none of whom could
than $32 billion in future government obligations.
Airfare, related expenses
be fired; Wall could be relieved of the chairman-
Wall had virtually set up his own printing press
JUNE 2. COLORADO SPRINGS
ship but not of a position on the board. According
and had handed out 10-year notes and long-term
Financial Stationers Association event
to a source, Roger Martin, the other Republican on
guarantees that allowed the richest corporations
Airfare, related expenses
the board, would have been the logical alternative,
in America to become even richer. Among the re-
JUNE 13, ST. LOUIS
but the job was considered to be over his head.
cipients of Wall's largess were Ford Motor Com-
Illinois Bankers Association event
White was a Democrat, and the idea of the S&L
pany ($212 million in tax-breaks), Texas billion-
Airfare
industry being saved by a Democrat was too loath-
aire Robert Bass ($218 million), and corporate
JUNE 20, MIAMI
some for the administration to consider.
raider Ronald Perelman ($900 million).
Florida International Bankers event
Airfare
The specter of the giveaways alarmed Gould, a
Danny Wall as Monty Hall
professional deal-maker before he came to work
JULY 28, DENVER
By the fall of 1988 Wall had retreated into a bun-
at Treasury. He wanted details.
American Bankers Association event
"It was goddamned uncontrollable," says Gould.
Airfare, related expenses
ker mentality, tightening his inner circle and shut-
ting out outside voices. At the time he was trying
"I really worried for the budget, the taxpayer. You
AUGUST 18, MONTEREY
to launch his one great initiative, the Southwest
can't run the federal government that way. You
U.S. League of Savings Institutions
event
Plan, to stop the bleeding where it was worst. The
can't have a guy over here with a printing press
Airfare, hotel, and related expenses
plan, which was designed to infuse more capital
going his own way."
AUGUST 20. WINNIPEG
into failing institutions through a series of what
On the other hand, Gould weighed the implica-
Federal Home Loan Banks of
were called "shotgun marriages and funerals,"
tion of reviewing the deals before they were made.
Des Moines and Cincinnati event
became the bureaucratic equivalent of a massive
Would the Treasury Department be providing
Airfare, hotel, and related expenses
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72 DECEMBER 1989
CONFLICTS OF INTEREST
SEPTEMBER 4. TAIPEI
implicit approval of them? In this case, was ig-
Lincoln was finally shut down this spring, per-
U.S. Chamber of Commerce-Tarrison event
norance desirable?
haps too late for taxpayers. It's expected to require
Airfare, hotel, and related expenses
Gould didn't press the issue.
a $3 billion rescue, an amount that will make it the
SEPTEMBER 10. MINNEAPOLIS
largest bank bust in history. Wall's inexplicable
Larkin Hoffman event
The Land of Lincoln
cover-up for the S&L, which lasted from mid 1987
Airfare
Of all Wall's curious dealings, the most curious was
until April 14, added a substantial amount to the
SEPTEMBER 18, MILWAUKEE
his handling of Lincoln Savings & Loan, Charles
cost. During the time it should have been under
Wisconsin League of Savings
Keating's institution, which had virtually aban-
the closest scrutiny by the bank board its assets
Associations event
doned home loans and had embraced dubious
grew by almost 40 percent, to nearly $5.6 billion,
Airfare
ventures, many of which were going sour. Lincoln
mostly as a result of large increases in its portfolio
OCTOBER 20, SAN FRANCISCO
was being run like a federally owned casino. Gray
of speculative investments: raw land, construction
American Financial Services
considered it to be one of the worst examples of
loans, nonresidential real estate loans, and junk
Association event
Airfare
abuse in the country, and as early as May 1987 the
bonds. During Wall's stalling Lincoln was able to
bank board's examiners in San Francisco wanted
foist some $220 million worth of uninsured bonds
OCTOBER 24, SAN DIEGO
to shut it down.
on investors; one of them was an 80-year-old wom-
Far West Regional Managers event
Airfare, hotel, and related expenses
For months Lincoln had complained about the
an who was chauffeured by Lincoln to a branch of
the S&L, where she shifted her money out of feder-
NOVEMBER 10. SAN FRANCISCO
manner in which it was being regulated, to no
U.S. League of Savings Institutions event
avail. When Wall took office, however, its com-
ally insured CDs and into the bonds.
Airfare, hotel, and related expenses
plaints received more sympathetic hearings. Wall
The blatant stupidity-or venality-of the Lin-
coln fiasco alienated Wall's fellow regulators. During
NOVEMBER 13-14, PALO ALTO
broke with his agency's custom by meeting with
Hoover Institute event
Keating several times. Within a month of taking
a closed-door meeting, Robert Clarke, the comp-
Airfare, hotel, and related expenses
office Wall made a futile bid, on Keating's behalf,
troller of the currency, called Wall's action "the
NOVEMBER 16, HONOLULU
to kill a reprint of an exposé about Lincoln that
most outrageous act" he'd witnessed in govern-
North American Securities
was scheduled to run in Arizona Trend; the article
ment. William Seidman, the chairman of the Federal
Administrators Association event
had originally appeared in Regardie's. Then, in the
Deposit Insurance Corporation, which is to com-
Airfare, hotel, and related expenses
spring of 1988, Wall transferred Lincoln's regula-
mercial banks what the bank board was to thrifts,
DECEMBER 4, TAIPEI
tion to Washington, where little was done to pres-
was just as furious. Seidman and his agency had
USA-ROC conference
sure the S&L to change its ways.
dealt astutely with hundreds of commercial bank
Airfare, hotel, and related expenses
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74 DECEMBER 1989
CONFLICTS
closures; he felt that he knew how to res-
P.G. County's #1 Agent
Comes Home To
cue the thrift industry and that Wall didn't
Mount Vernon Realty.
have a clue.
Mount Vernon Realty is
One afternoon Wall paid a rare visit to
pleased to welcome Prince
Seidman. Those who saw Wall describe
George's County's #1 associate.
Joyce Roper, to our family.
him as being in "a blue funk" and eager to
"Mount Vernon IS the premier
berate Seidman for having broken rank with
real estate firm of the 90s." says
him. According to sources, Seidman lec-
Joyce. "Their corporate philo-
sophy of dedication to serving
tured Wall on the role of bank supervision
the customers and agents'
and made the point that keeping people
needs. as well as their involve-
ment with Childhelp USA.
happy wasn't what the job was all about.
places them at the forefront of
"God, Danny, nobody ever said that a test of
Washington-area realty firms."
a supervisor is whether the guy he's super-
Joyce can now offer her clients
the advantage of Mount Vernon
vising agrees with him or not," he said. "If
Realty's #1 Rated Home Shore
America's #1 Relocation
you had somebody you didn't think was
Network. Fine Homes &
doing a good job in San Francisco. I can
Estates. and the best Guaranteed
understand why you'd get rid of him and
Sales Program in the industry
put someone else in there. But why would
you want to bring this thing to Washington?"
And then Seidman told Wall bluntly:
Joyce Roper.
"You're responsible for Keating, you know
CRB. CRS. GRI
that?"
Mount Vernon Realty
Greenbelt Office
Ever the bureaucratic infighter, Wall re-
Office: 345-7600
turned the favor by trying to cut Seidman
Res: 937-2838
out. He went so far as to have his staff re-
Mount Vernon Realty
Montgomers County
peatedly attempt to enlist the press to write
MVR
Mount Vernon
Chairmans Club
Board of REALTORS'
Over S13 000,000 in Closed
Central Maryland
stories that challenged Seidman's loyalty to
R
REALTYINC
Transactions in 1988
Board of RE AUTORS
Prince Georges County
Washington, D.C.
the administration.
Board of REACTORS*
Board of REAETORS'
From that point on, recalls a source, "Dan-
ny and Seidman had such bad blood that
Danny wouldn't even listen to Seidman. At
one point I said to Danny, 'Seidman is
overstaffed. He's going to lay off some peo-
ple and has invested a lot of money in com-
280
puter field systems. Why don't you let him
lend you a couple of guys and the systems?"
Danny wouldn't take them."
Square Feet Sold & Leased !!
Wall's apparent indifference to the alarms
that were sounded by his regulators has be-
LH&A
come the subject of an inquiry by the House
LARRY HOGAN & ASSOCIATES
Banking Committee. The bank board's re-
gional regulators have testified that they
(301)322-2500
tried to take action against Lincoln but
were stopped by their superiors.
"The failure of the bank board to pur-
sue Lincoln," chairman Gonzalez wrote
in a letter to President Bush, "is not an
isolated case but rather an example of the
mismanagement and closeness to the in-
REISS
dustry of the bank board during Danny
Wall's leadership, which lie at the root of
[the FSLIC's] collapse."
CONSTRUCTION
Michael Binstein, a contributing editor of
Regardie's, has written several landmark sto-
"Our Business Is Building Your Business."⁰
ries about the S&L industry for the magazine,
including an exposé of Charles Keating's Lin-
4701 Sangamore Road, Plaza Level North, Bethesda, Maryland 20816 (301) 229-8310
coln Savings & Loan in July 1987.
REGARDIE'S 75
PRIVATE DINNER (CANADA) WEDNESDAY, NOVEMBER 29, 1989 - 6:00 PM
SW GATE - SECOND FLOOR PRIVATE RESIDENCE
THE PRESIDENT
Hon. James A. Baker III
Secretary of State
Hon. (Gov.) John H. Sununu
Chief of Staff to the President
Hon. (Gen.) Brent Scowcroft
Assistant to the President for National Security Affairs
Hon. Robert M. Gates
Assistant to the President for National Security Affairs
Hon. (Amb.) Edward N. Ney
United States Ambassador to Canada
THE RIGHT HONORABLE THE PRIME MINISTER OF CANADA
The Right Honorable Joseph Clark
Secretary of State for External Affairs
Mr. Stanley H. Hartt
Chief of Staff to the Prime Minister
His Excellency Derek Burney
Ambassador of Canada
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
06a. Note
Handwritten notes of Presidential Phone call with President
11/29/89
(b)(1)
Roh Re; meeting (1 pp.)
Collection:
Record Group:
Bush Presidential Records
Office:
Office of the President
Series:
Daily Files
Subseries:
WHORM Cat.:
File Location:
Wednesday, November 29, 1989
Date Closed:
10/27/2009
OA/ID Number:
90527-014
FOIA/SYS Case #:
2009-0166-S
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
PRM. Removed as a personal record misfile.
THE WHITE HOUSE
9607
WASHINGTON
1989 NOV 29 PM 4: 11
November 29, 1989
FOR:
THE PRESIDENT
FROM:
BRENT SCOWCROFT
B
SUBJECT:
Telephone Call from President Roh Tae Woo
of Korea
DATE:
November 29, 1989
PURPOSE:
To reassure President Roh that Korean
interests will not be jeopardized in talks
with the USSR at Malta.
Following his dinner with Prime Minister
Thatcher last night in London, President Roh
indicated a desire to phone you prior to your
departure for Malta.
SECURE OR OPEN:
Open Line
INTERPRETER:
Mr. Tong Kim, 647-3492
PHONE NUMBER:
Call originating from London
CONTACT PERSON:
Karl Jackson, 395-6173
TIME DIFFERENCE:
5 hours
SUGGESTED TIMES:
5:00 p.m. EST
TOPICS OF
1. Reassure Korea that you will keep Korea's
DISCUSSION:
interests in mind.
2. The Soviets have not applied new thinking
in Asia as they have in Europe.
3. Improved relations with the Soviet Union
require resolution of regional issues.
4. Pacific arms control proposals will not
be discussed at Malta.
Attachment
Tab A
Points to be Made
CC: Vice President
Chief of Staff
: 3 3HT 3
093822 55
POINTS TO BE MADE FOR
TELEPHONE CONVERSATION WITH
SOUTH KOREAN PRESIDENT ROH TAE WOO
:
Thank you very much for your call.
I want to consult with our allies.
This is not a formal summit. There is no agenda. This is
not the time for specific statements or agreements.
:
We will have an open agenda and will discuss a broad range
of issues:
--
The situation in the Soviet Union.
--
Developments in Eastern Europe.
-- Arms control: (This is not an arms control summit,
detailed negotiations best left to Geneva, Vienna and
the formal U.S. -Soviet summit.)
:
Cambodia.
KOREA
:
Peace and stability in the region would be well served if
the North would join with the South in decreasing tensions
through direct dialogue as well as practical confidence
building measures.
:
Soviet deliveries of increasingly sophisticated weapons to
the quantitatively superior armed forces of North Korea
continue to increase tension.
-- North Korea's nuclear program could provide it with the
capability to produce nuclear weapons by the mid-1990s and
2
this would be a fundamentally destabilizing event. The
Soviets will be asked to persuade North Korea to sign the
Non Proliferation Treaty (NPT) safeguards agreement. Our
two countries must avoid unilateral actions that could
undermine these diplomatic efforts.
There will be no surprises for our allies.
--
The U.S. will not jeopardize the interests of Asia
because of changes in Europe.
--
We have seen no diminution of the North Korean threat.
--
The U.S. commitment is as strong as ever.
--
There are no current plans to reduce U.S. forces in
Korea. Any changes will be made only after full
consultation with Seoul.
--
(IF ASKED ONLY) We support dual UN admission for the
two Koreas.
--
We would listen to any Soviet proposal regarding cross
recognition. However, we would consider it in
conjunction with real progress in South-North talks,
North Korean policies in the nuclear area -- including
acceptance of NPT safeguards -- and changes in its
record of terrorism.
--
I will tell Secretary Gorbachev that internationally Soviet
behavior has been mixed and that the U.S. continues to worry
about Soviet behavior. The Soviet Union needs to move
toward being part of the solution, not part of the problem,
in places such as the Korean peninsula.
--
I welcome your advice and suggestions.
098085
I
TR046-01
Nov.29 1989
Dear President Cartu,
As I head off to Malta
tomorrow; I want to thank
you so very much for you
letter and the suggestions three
wom But wish - as
FROM
THE WHITE HOUSE
WASHINGTON, D.C.
The Honorable Jimmy Carter
1 Copenhill Avenue, NE
Atlanta, Georgia 30307
bcc:
Sununu
Scowcroft
}
done
B.Y.
11/28
f
CET
FROM
096098
THE WHITE HOUSE
WASHINGTON. D.C.
F0006-03
His Eminence Bernard Cardinal Law
Archbishop of Boston
2101 Commonwealth Avenue
Brighton, Massachusetts 02135
NOV. 29,1989
My Friend, Your Enitrience Malta Bonnd
Your letter given me
strength and indeed points
out a most fundamital
difference between the Sovieto a us.
was it Abraham Linedu
who tallud about time
"spent on his knees"- He was
right on that you know.
dano
Thank you for your
-
cc: Daily File
thoughts - pragra.
I'll do my very best
cc: John Sununu
Doug Wead
INCOMING & OUT
891130
GyB/
CARDINAL'S RESIDENCE
2101 COMMONWEALTH AVENUE
BRIGHTON. MASSACHUSETTS 02135
TO LIVE 5 CHRIST
November 29, 1989
Dear Mr. President,
as you place for the historic mine-
Jummit, I want you to know you have the
pledge 8 my prayens.
Prayer - a recognition of Ind - a
realization that the human person images The livine, is
distined for eternal life, and is called to a moral life
based bee God's law — we these are what
still divide us from the official, Societ vision. I pray
that the transcendent prospective will be included in
your discussions.
It would be a privelye to visit with you when
you return.
Cordially yours a Christ,
Heared
CB
FROM
G
THE WHITE HOUSE
P
096082
WASHINGTON. D.C.
from OPM
MA
Dr. Norman Vincent Peale
Pawling, New York 12564
NOV. 29, 1989
Rear Dr. Peale-
Thank you for
that wonderful letter
of Oct.23. well do
I recall our last
meeting at the Koppie farm.
bcc:
Sununu (fyi)
dana
Petersmeyer (further action)
bcc: Elizabeth Dole
8.4.
Demarest (fyi)
Bates (fyi)
done
Rogich (fyi)
B.Y
"1/29
891129
I have asked my top
people to give priority
consideration to your
constmative idea of
the America Anando -
I am exphasizing " 1000
Points of Light" and your
idea ties right in. My thats Go sin But
MR. PRESIDENT:
Dave Demarest has already
received this proposal
direct from Dr. Peale,
and is talking with Sig
Rogich about doing
something after Jan. 1.
We're also working on the
"bravery commendations"
following the recent
string of disasters (per
< your request) Dole jc
SECRETARY OF LABOR
WASHINGTON
November 17, 1989
MEMORANDUM TO THE PRESIDENT
ELIZABETH DOLB
A
FROM:
SUBJECT: "AMERICA'S AWARDS"
Dr. Norman Vincent Peale has asked that I
bring to your attention the above-referenced
proposed project. These awards would be
presented annually, at Thanksgiving time, to
a limited number of our nation's "unsung
heroes" who personify the best qualities of
the American character.
I understand that Dr. Peale's proposal is
currently being reviewed by your Office of
Communications. However, I wanted to let you
know that I believe these awards would go a
long way to highlight your commitment to
volunteerism and basic American values.
Norman Vincent Peale
Pawling, New York 12564
October 23, 1989
The Honorable George Bush
The White House
Washington, D. C. 20500
Dear Mr. President,
Ever since we had the privilege of visiting with you and Mrs. Bush at the Chad Koppie
farm in Gilbert, III., during the campaign, Ruth and I have wanted to do something to help
you. But you are doing so magnificently as President that we didn't know what we could
do, beyond praying for you.
Recently, however, some friends came to us with an idea. When we read their proposal,
Ruth and I were reminded of your conversation in Illinois. What had impressed us most
was the sincerity in your voice as you spoke of your desire to draw caring people together
to create a beacon of hope for those in need. Our friends share that dream. So do we.
After researching the idea and asking God's guidance, Ruth and I have decided to suggest a
way to help you create that bright beacon of hope.
Our idea is outlined in the attached proposal. To save you time, let me summarize that
document. Here is the dream:
It is Thanksgiving 1990. At 8 p.m., you gather the Bush family around the
television to watch the first annual America's Awards. For the next 90 minutes,
you-and 40 million other viewers-participate in a celebration of the values that
make America great. Celebrities tell of times when values made a dramatic difference
in their lives. Performers entertain with songs and skits that encourage values. But
the real stars of this special are six unsung heroes who will receive America's
Awards for personifying such qualities of the American character as courage, com-
passion, integrity, innovation, self-reliance and tenacity.
Each of these common extraordinary Americans is introduced in a three-minute
video biography. You, perhaps, are inspired by a courageous woman who risks her
life to testify against a gang member she saw murder an innocent woman. Your wife
may be moved to tears by an injured-and tenacious-cop who struggles for eight
years so that he can rejoin the police force. A grandchild is excited by a compas-
sionate children. ten-year-old girl who finds happiness as a volunteer at a school for deaf
With ten minutes to go in the previously recorded telecast, our six heroes are in-
vited onto the stage to receive America's Awards. Then you walk onto the stage, as
5000 people applaud. You say a few words about the importance of values to you
The Honorable George Bush - Page 2
October 23, 1989
and to America. Then you place a gold medal around the neck of each winner, and
Mrs. Bush hands each one a check for $100,000. (Patrons have provided the prize
money.) As the credits roll and a choir sings "God Bless America," you and a glitter-
ing array of celebrities lead the audience in a standing ovation for our six heroes.
the Nobel Prize. Think of it: a Nobel Prize for Courage. For compassion, and other values.
Mr. President, our dream is a bold one: to elevate America's Awards to the heights of
Only you, Mr. President, can give America's Awards the stature of a Nobel. Only
can bestow on these wonderful people the honor they deserve. Only you can present these you
awards on behalf of all Americans. Only you, the experts tell us, can draw the 40 million
to clear 90 minutes during prime time.
viewers needed to attract top celebrities as co-hosts, and to persuade a television network
dramatize, for millions of families, the values embodied by the people you characterized in
The America's Awards television special will provide an unequaled opportunity to
You are doing your best to create a beacon of hope. Now let the private sector help you.
and finer souls."
your inaugural address as having successes "made not of gold and silk, but of better hearts
promise. ("If the President can celebrate the quieter, deeper successes, then he must.") It
An awards program that is televised annually enables you to fulfill that inaugural
zero cost to taxpayers!
Presidency. Who knows, you may even begin a new Thanksgiving tradition. All this at
also enables you to institutionalize your program and make it a permanent legacy of your
who share our enthusiasm are a top television producer, and a major TV sponsor and its ad-
Ruth and I hope you are as excited about America's Awards as we are. Among those
vertising agency. (We hope to bring together several of America's finest corporations as
come sponsors.) true. If you will agree to appear on the special, I believe we can make this dream
Mr. President, to move this project forward, all we need is a letter from
before a live audience, present the first annual America's Awards.
you stating that you will appear during a videotaping of the program and,
secular broadcast that Thanksgiving. In the meantime, we will organize a blue-ribbon,
Later, we can work out a date, probably during the fall of 1990, to tape the special, for
foundation-with the sole purpose of nurturing traditional American values. non-profit, That
organization will select the winners and handle all other arrangements.
May we count on you?
Respectfully yours,
NVP:rc
Encl.
PR005
THE PRESIDEN
SEAL OF THE NITER PRESIDE
To Hugh - Betty -
Love from all Bushs
Your old friend
A Collection of Quotations from
GEORGE HERBERT WALKER BUSH
Gg Buil
11-29-89
John F. Sargent, Jr.
Editor
BRADDOCK COMMUNICATIONS
Photograph by David Valdez
FROM GEORGE
TO GEORGE
200 Years of Presidential Quotations
To Baine - Mildred
Love from all Bushn,
Compiled by
Donald L. Miller and
John Sargent
G Bul
with special assistance from
11-29-89
Jason L. Stern
ORIGINAL
XEROX COPY with
BK PLATES SENT to
BRADDOCK COMMUNICATIONS
BILL GENMELL 11/20
Jason L. Stern, President
November 10, 1989
bookplates /c 2 books
done - dispatched
Ms. Shirley M. Green
Special Assistant to the President for
12/5/89
Presidential Messages and Correspondence
The White House
Washington, DC 20500
Dear Shirley:
It was a pleasure to talk to you the other day. Would it be possible for the
President to personally sign two copies of The President's Point of View,
one for Hugh Liedtke and the other for Baine Kerr?
Additionally, I would appreciate it if 50 more books could be autopenned
with the names of the individuals provided on the enclosed list.
Personal friends of President per Frank Ferestro, VPof
If you have any questions please me. Again, thank you for your assistance.
Sincerely,
Penzail, represents
Hugh Lidke
Jan Jason L. Stern
enclosures
1001 Connecticut Avenue, Northwest, Suite 216, Washington, DC 20036 (202) 296-1317
President Bush Inaugural Books
Signature/Personal Note
J. Hugh & Betty Liedtke
TAKEN CARE ot
Baine & Mildred Kerr
Autopen
, Randal & Janette McDonald
42 The Tierney Family
2 Bob & Elise Semrad
43 The Carpentieri Family
3 Scotty & Jacque Holland
44 Dr. Mario Lauro
4 Jim Pate
45 John Santa Barbara
5
Cliff Fridge
46 Lisa Jones
b
Norm Luke
47 Ron Huber
7 Fred Owen
48 Rev. Henry Murphy
8 James Shaddix
49 Bill Roden
3 Dick Valentine
50 Britt & Sara Mayo
10 Jim Malone
" Doug & Hilda Bourne
12 Kathleen Winn
13 Tom Powell
14 Terry & Gloria Hemeyer
15 Cheryl Santia
16 Mary Beth Simcik
17 Paul Kruse
is Mike & Darlene White
19 Anthony Cavender
20 Tracey McMinn
21 Marie Verrastro
Penzeil people - Bd,
22 Dom & Margaret Verrastro
operating Comm., weeked on b.
3 Pamela Verrastro
=4 Alexandra Israel
5000 given out
25 Robert & Edith Price
CUJ. J. Lisle Reed
27 James Hemphill
by many Cong Camm. to VIPs
2¥ Linda Carlton
29 Donald & Celia Dobruck
30Gil & Betty Tetrault
31 Sophie Simcik
2nd Version given to WH. Rub.
32 Margaret Simcik
Liasion
33 Kathy Simcik
34 Brent & Cynthia Wrasman
35 Gary & Donna Dockall
36 Harry Barsh
37 John Sharp
38 Bill Simpson
39 Wes McAden
to JoAnn Wilson
41 Arlene Phillips
098086
PR005
Nov.29,1989
Rear Diane -
Now what will you
do math this giant photo?
Never mind - it reminds
me, at least, of a pleasant
encountry -
Bach to Bach we
faced each sther - and
all was kind n gentle
OH to Malta tomorrow.
My best to m.ke, too.
as Bul
FROM
THE WHITE HOUSE
WASHINGTON. D.C.
Ms. Diane Sawyer
ABC News
1965 Broadway
New York, New York 10023
bcc: Governor Sununu
Marlin Fitzwater }dane
?
B.Y.
11/29
FROM
who is
THE WHITE HOUSE
WASHINGTON, D.C.
Mr. Richard G. Merrill
Miller Road
New Vernon, New Jersey 07976
THE PRESIDENT
November 29, 1989
Dear Dick:
It was so good to hear from you and I appreciate
your thoughtfulness in sending a copy of that
old 1977 United Way Campaign Leadership organizational
chart. It brought back a lot of pleasant memories.
Thanks, too, for your kind words about Scott Pierce.
I shared your letter with Bar and she joins me in
sending our warmest best wishes.
-
Sincerely,
G/
NOTE TO RECORDS:
Please note that the
organziational chart
goes back to Mr. Merrill
JB
thanks.
White House News Summary
Thursday, November 30, 1989 -- 1
1:30 P.M. NEWS UPDATE
MALTA MEETING/PRESIDENT (Barry Schweid, AP) -- President Bush,
preparing to depart for his shipboard summit with President Gorbachev,
told his Cabinet today he believes "Gorbachev is looking at the meeting
very much the same way we are."
Bush, in an interview Wednesday
with newspaper correspondents that was released today by the White
House, was asked what changes he foresaw for NATO and the Warsaw
Pact. "It's too early to predict how all this will play out, but clearly it's
moving in the right direction and clearly it's moving in a way that should
result in a permanent reduction of the tensions that have been the
hallmark of the Cold War days, the President said. He said the unfolding
changes have given "more of an urgency" to the meeting since he first
proposed it in July. But he insisted, "There's been no change, in my
view, as to what this meeting is to be about. "
He said he believes the
Soviets are not "looking for confrontation
I think that it is unlikely
there will be something so dramatic that it puts us in an embarrassing
position.
"
MALTA MEETING/MIDEAST (Tunis/UPI) -- The Arab League Council called
on President Bush and President Gorbachev Thursday to make the
"explosive" Palestinian-Israeli conflict a priority at their superpower
summit off Malta. The council closed its two-day meeting by releasing a
copy of a message it delivered to the U.S. and Soviet embassies. "The
Council of the League of Arab Nations calls on the United States of
America and the Soviet Union at their Malta talks to accord to the
Palestinian problem the priority called for by the explosive situation in the
Middle East,' the message said. It also urged Bush and Gorbachev to
"rapidly move the peace initiative on the Palestinian problem out of the
impasse brought on by the negative and obstinate position of the Israeli
government and to agree to the holding of an international peace
conference on the Middle East, which has the support of the United
Nations and all the parties concerned except Israel."
USS BELKNAP (Marsaxlokk Bay, Malta/AP) -- Armed with buckets of paint
and soapy water, sailors scrubbed the decks and touched up bulkheads of
the USS Belknap today in preparation for President Bush's seaborne
summit with President Gorbachev
"We have worked very hard for
this. The day-to-day things we do have accelerated to make the ship as
clean and look the way it ought to for such a visit," said Capt. John
Sigler, the commander of the Belknap. "Of course I am absolutely honored
to have our President aboard ship
I am also very honored to have
Mr. Gorbachev aboard because I think the changes that are occurring in
the world right now are due in large part to his diplomacy," said Sigler.
WARSAW PACT/U.S. (Reuter) -- The tide of reform sweeping Eastern
Europe is leading to a radical reassessment among U.S. strategic planners
of the military threat posed by the Warsaw Pact. One pointer to changed
thinking was in a leaked Pentagon document challenging the accepted
wisdom concerning the amount of warning time the West was likely to
receive of an impending Soviet attack. The document, entitled "Using
Earlier Warning to Improve Crisis Deterrence and Warning Capabilities,"
and published by the The Washington Post Wednesday, said the West would
have much longer advance warning of a planned Soviet attack than had
previously been assumed. A Pentagon spokesman confirmed the existence
of the report but was unwilling to discuss its contents in detail. "These
issues are obviously under review as events develop," he said.
-more-
White House News Summary
Thursday, November 30, 1989 -- 2
PHILIPPINES COUP ATTEMPT (Manila/Reuter) -- Army rebels, backed by
armored cars, have occupied part of a Manila air base in an apparent coup
attempt against Philippine President Aquino, Defense Secretary Fidel Ramos
said Friday.
(Manila/UPI) -- Soldiers linked to ex-army Col. Gregorio "Gringo"
Honasan raided and crippled a vital communications relay station outside
Manila in another failed coup attempt against President Aquino, the armed
forces said Thursday night. Gen. Renato de Villa told a late night news
conference three leaders of the attempt had been arrested after the raid,
which he implied failed because of bad timing. But he said Philippine
troops remained on alert because the mutineers allegedly had intended to
seize installations in Manila Friday.
EL SALVADOR (San Salvador/UPI) -- The U.S. chartered two jetliners to
evacuate 300 Americans out of El Salvador Thursday following a leftist
rebel attack in the capital that destroyed a U.S. official's home and sent
scores of Americans into emergency shelters. The rebel FMLN called a
six-hour cease-fire to facilitate the evacuation of the foreigners from the
exclusive neighborhoods of Escalon and San Benito, where many Americans
live
U.S. Embassy spokesman Barry Jacobs said about 300 Americans
were expected to leave Thursday on two U.S. commercial airliners
chartered by the government. One aircraft, expected to leave about noon,
was to fly to Washington, D.C., while the other, scheduled to leave in the
afternoon, was to travel to Miami.
CHINESE MISSILE/SYRIA (Reuter) -- The U.S. is concerned that China is
developing a short-range ballistic missile capable of carrying nuclear or
chemical warheads and is negotiating to sell it to Syria and other Middle
East nations. U.S. officials and analysts said Washington had urged China
not to go through with the sale of the M-9 missile to Syria, arguing that
this could seriously destabilize the Middle East. "The Chinese have been
out hawking the missile for some time and we indicated that we wanted
them to back off," said one official who asked not to be identified
[U.S. officials] could not confirm persistent Arab press reports that
Beijing had already signed an agreement to sell the missile to Syria.
GORBACHEV/POPE (Rome/Reuter) -- Soviet President Gorbachev's visit to
the Vatican is Moscow's public recognition of Pope John Paul II's
international prestige and moral authority, a Soviet official said Thursday.
Juri Khristoradnov, head of the Soviet Council for Religious Affairs, made
the remark in an interview with Italy's Communist Party newspaper L'Unita
on the eve of the historic meeting. He also said a new law on freedom of
conscience would give Soviet citizens wide religious liberties.
SOVIETS/ARMENIAN UNREST (Moscow/Reuter) -- Tens of thousands of
Armenians massed in the streets of their southern Soviet republic for the
second day running Thursday to denounce legislation returning control of
Nagorno-Karabakh to Azerbaijan
Their numbers were expected to
swell as the Armenian parliament began to debate Tuesday's decision by
the Supreme Soviet in Moscow to end central control of the territory
imposed in January and to return it to Azerbaijan subject to certain
conditions. "The situation is very tense. People are demanding arms from
the government and say they are ready to defend Armenia with their
lives," [an journalist at Armenia's Armenpress news agency] said.
-more-
White House News Summary
Thursday, November 30, 1989 -- 3
EAST GERMANY/HONECKER (East Berlin/AP) -- Authorities have cleared
the way for criminal charges to be filed against ousted leader Honecker
and other disgraced officials of the past Communist Party leadership, East
German officials announced today. A security cordon also was erected
around the lavish compound where Honecker and other party figures
suspected of wrongdoing live to prevent them from taking state property,
the official ADN news agency reported.
CZECHOSLOVAKIA (Prague/Reuter) -- Czechoslovakia said Thursday it
would dismantle its "Iron Curtain" frontier with Austria as its Prime
Minister Adamec worked to form a new government and hard-line President
Gustav Husak resisted demands that he step down. In the latest
concession to demands to create a free and open society, Czech deputy
government spokesman Marcel Jansen said the dismantling of its frontier
with Austria would begin immediately. The move, which made no mention
of the border with West Germany, followed a vote by parliament to
eliminate the Communist Party's guaranteed political monopoly.
LEBANON/U.S. (Reuter) -- The U.S. has sent messages to Syria, Israel
and other Middle Eastern governments urging restraint in the face of an
increasingly menacing situation in Lebanon, an administration official said
Thursday. The official, who asked not to be identified, told Reuters the
U.S. ambassador in Damascus, Edward Djerejran, had met with Syrian
government officials and urged them not to launch an attack on hard-line
Christian Gen. Aoun
"Our ambassador urged the Syrians to hold
back. We're also telling the Israelis not to take advantage of the situation
and have been in touch with the Jordanians, Iraquis and Saudi Arabians,"
the official said.
LEBANON (Beirut/Reuter) -- Lebanon's new president said Thursday "the
Day of Judgment" was very near for Gen. Aoun, shielded from attack for
a third day by thousands of supporters. President Hrawi said he wanted
peace but the blame for any fighting would rest with Aoun
"I don't
want a single drop of blood to be shed in east Beirut and west Beirut or
any other place, Hrawi told a a news conference in the Syrian-controlled
Bekaa Valley. "I confirm that we don't want to spark a war on the
eastern (Christian) areas but those who are going to start this war are
Aoun and the rebellious. We will never accept that they remain in their
posts. The Day of Judgment is coming and it will be very soon. "
LEBANON/ISRAEL (Jerusalem/Reuter) -- Israel, closely monitoring military
activity in Lebanon, warned Thursday it would intervene if Syrian efforts
to remove Christian leader Aoun threatened its security. The foreign
ministry released a statement presented to parliament Wednesday outlining
Israeli policy, warning that Israel would act if it saw its interest
threatened. But it would not comment on Israeli media reports that the
Jewish state was in contact with European countries to try to defuse the
Lebanese crisis
"Israel's basic policy calls for avoiding military
intervention in the Lebanon crisis, but we leave ourselves the freedom of
action and response if our vital interests are endangered," said the Israeli
statement.
LEBANON/FRANCE (Paris/Reuter) -- France Thursday dispatched a naval
vessel to the eastern Mediterranean, ready to evacuate French citizens
from Lebanon if fighting breaks out. Naval authorities said the
L'Orage
set out from the Mediterranean port of Toulon in the early hours
of Thursday morning.
-more-
White House News Summary
Thursday, November 30, 1989 -- 4
CONSUMER SPENDING (AP) -- Consumer spending fell 0.2 percent in
October, its largest decline in nearly three years, despite a 0.9 percent
gain in personal incomes, the Commerce Department reported today. The
drop in consumer spending, reflecting plummeting auto sales, followed a
0.3 percent advance in September
The October report showed that
Americans' incomes after taxes rose 0.9 percent, up from September's 0.2
percent gain.
ECONOMIC SUMMIT/HOUSTON (Laurence McQuillan, Reuter) -- President
Bush has selected Houston as the site of the next economic summit for the
seven major Western industrial countries, White House sources said
Thursday. They said the summit will take place next July. "It is
expected to be announced tomorrow," said one White House official
The Houston Chronicle reported Thursday that the summit would take place
on July 7 to 9.
ROCKY FLATS/ENERGY DEPT. (Denver/AP) -- The Energy Department
says it is suspending plutonium operations at Rocky Flats while a new
contractor takes over at the weapons plant, which is under FBI
investigation for alleged safety violations. Catherine Kaliniak, an Energy
Department spokeswoman in Washington, said today that plutonium
operations at the plant will be stopped temporarily by sometime next
week
Kaliniak said the Rocky Flats suspension had nothing to do with
safety concerns.
###
White House News Summary
Wednesday, November 29, 1989 -- 1
5:15 P.M. NEWS UPDATE
SOVIETS/NICARAGUA/SALVADOR ARMS (Paris/UPI) -- Nicaraguan leaders
and Cuban diplomats agreed to halt shipments of weapons to Salvadoran
rebels through Nicaragua after a "stormy" meeting with Soviet diplomats in
Managua, Le Monde newspaper reported Wednesday. Following the meeting
Tuesday, Nicaragua's Sandinista commanders also decided to expel leaders
of the Salvadoran rebel group, the FMLN, from Nicaragua, the report
said. The meeting was held, "apparently at the request of the Soviets,"
to discuss the Salvadoran guerrilla offensive of Nov. 11 and the crash in
El Salvador last Saturday of a twin-engine plane carrying anti-aircraft
missiles
Le Monde, citing unnamed Sandinista officials, said the
Sandinista commanders were never informed about the shipment of weapons
by Cuba through Nicaragua and said they were furious at Cuban leader
Castro over the incident. The Sandinistas are worried about El Salvador's
claim before the U.N. Security Council that Nicaragua is interfering with
its internal affairs, the newspaper reported
"The El Salvador affair
can only serve to increase our isolation even though we have had nothing
to do with recent events. The offensive and weapons deliveries were
organized by the FMLN and by Cuba," a spokesman said. "We were
against the offensive because we think that conditions are not favorable
for a general insurrection in El Salvador," the official said. "We are
paying a very high price today for our solidarity with the FMLN."
EL SALVADOR (San Salvador/Reuter) -- Leftist insurgents, apparently
launching the second phase of a major offensive, struck Wednesday at
targets across the capital and the fighting forced the U.S. embassy to
close down. In an operation that appeared to belie government claims that
the rebels were a spent force, fighters of the FMLN slipped into positions
close to the Salvadoran armed forces headquarters and an army academy
and opened up with mortars and machine guns
"This is the second
phase of our offensive," a guerrilla told reporters in Escalon
He
added, "We are taking the war to the homes of the bourgeoisie."
U.S.
government officials, including CIA chief Webster, reported that the
Japanese Embassy had been overwhelmed and seized by the insurgents.
But an official in the embassy told Reuters, "There's absolutely nothing to
this. No one has taken the embassy. No one has entered and no one is
occupying it except the people who work here." A broadcast by the
FMLN's Radio Venceremos said U.S. personnel should stay in their
residences but added Americans were not targets in the latest assault.
GORBACHEV (Rome/UPI) -- Soviet leader Gorbachev unexpectedly stopped
his motorcade Wednesday for a walk near the Colosseum and thousands of
cheering Italians waving Communist Party flags and chanting "Viva Gorby"
gave him a tumultuous welcome on the first day of his state visit
"Tell all the Italians that I bring them the warm and cordial wishes and
greetings of all the peoples of the Soviet Union," Gorbachev told
reporters.
(Rome/Reuter) -- A man police described as mentally disturbed
rushed at Soviet leader Gorbachev's limousine in Rome Wednesday
He
reached the car waving what appeared to be a letter, which police said the
man wanted to give to Gorbachev. Italian and Soviet security
men
tackled and arrested the man.
-more-
White House News Summary
Wednesday, November 29, 1989 -- 2
CZECH COMMUNISTS (Prague/Reuter) -- The Czechoslovakian parliament
voted Wednesday to strip the Communist Party of its guaranteed monopoly
on political power. The 350-member Federal Assembly unanimously
approved the abolition of Article Four of the constitution which states that
the party shall have a "leading role." Ousted party leader Milos Jakes
and several hard-liners who lost their ruling Politburo posts
were among
those who voted for the move.
TROOP REDUCTIONS/BUDGET (UPI) -- President Bush's proposal to
withdraw 30,000 troops from Europe would save only $1.6 billion a year
and more cuts would be necessary to make substantial budget savings,
analysts said Wednesday. "Clearly, conventional arms reductions will have
to produce larger savings if they are to have a significant budgetary
impact," said the Defense Budget Project, a non-profit, non-partisan
research and analysts organization
"One way to gain larger savings
would be to make corresponding cuts in U.S. forces stateside," the
organization said.
WARSAW PACT (Warsaw/Reuter) -- The Warsaw Pact military alliance will
meet in Moscow after next weekend's Soviet-U.S. summit off Malta, a Polish
government spokesman said Wednesday. Deputy spokesman Henryk
Wozniakowski did not say when the meeting would occur but Solidarity
sources said it would be next Monday
The Solidarity sources said
President Gorbachev would brief the six other pact member states on his
talks with President Bush.
SWEDEN/U.S. NAVAL ARMS (Reuter) -- A senior Swedish official slammed
the U.S. Wednesday for its refusal to contemplate naval arms control
negotiations with the Soviet Union
Sweden's undersecretary for
foreign affairs Pierre Schori told reporters his country intended to
spearhead a Nordic initiative on the subject. "The United States is
stonewalling on naval disarmament. We think this is unacceptable and
dangerous," Schori told a group of Nordic reporters in Washington
POLAND/YEUTTER (Warsaw/UPI) -- A special mission led by Secretary
Yeutter arrived in Warsaw Wednesday to discuss with the new Solidarity
government ways of overhauling Poland's devastated economy. "President
Bush has asked us to come to Poland to listen, to learn and to see what
we can do to help," Yeutter said after arriving at Warsaw's Okecie airport
with the 50-member delegation that included Secretaries Dole and
Mosbacher
"We attach great significance to the visit," said Alfred
Siennicki, a Solidarity government economic analyst.
EC92/HILLS (UPI) -- U.S. Trade Rep. Hills said Wednesday it is unclear
how the political changes sweeping Eastern Europe will affect the economic
changes expected from the easing of EC trade barriers in 1992. "I see
EC92 as a process, an evolving process," Hills said. "The changes
occurring in Eastern Europe are welcome and will add to their agenda just
as they add to our agenda." "We don't know what will happen in the
future in respect to Germany, Eastern Europe or the Soviet Union," she
said.
-more-
White House News Summary
Wednesday, November 29, 1989 -- 3
GERMAN REUNIFICATION/MITTERRAND (Athens/UPI) -- French President
Mitterrand said Wednesday he could support the reunification of Germany
under a plan proposed by Chancellor Kohl, provided it was "democratic
and
peaceful.'
The
French
president
said:
"If
the
two
states
decided
democratically to form a confederation, no one can stop that."
Asked
what ramifications this could have for the rest of the EC economic
partners, Mitterrand replied, "I have told Chancellor Kohl that the
development of events in Eastern Germany and the whole of Germany would
have to be democratic and peaceful."
KGB/WEBSTER (UPI) -- CIA Director Webster said Wednesday the Soviet
KGB is "more aggressive" under President Gorbachev and is making a
bigger effort to "recruit our embassy and intelligence personnel" as spies.
Webster made the remarks at a National Press Club luncheon when asked if
Soviet intelligence efforts had declined since Gorbachev assumed power and
implemented a series of economic and social reforms. "We believe just the
reverse is taking place, Webster said. "Around the world our stations
are reporting more aggressive action, a more robust intelligence-collection
effort, more efforts to recruit our embassy and intelligence personnel than
we have seen in a long time."
CIA/EL SALVADOR (Reuter) -- El Salvador has delayed granting a visa to
former attorney general Ramsey Clark, who is urgently seeking to travel
to the country to represent [Jennifer Casolo] a Clark
aide
said
Wednesday
Bob Schwartz
said he was under the impression that the
visa request was being held up at the Foreign Ministry in San Salvador.
But he said there had been no explanation for the delay
Officials at
the embassy of El Salvador in Washington were not immediately available
for comment.
CIA/WALDHEIM (New York/Reuter) -- The CIA has had in its possession
since its creation 42 years ago a document that could have kept Kurt
Waldheim from ever being named U.N. Secretary General, a leading Jewish
group said Wednesday. The group, the World Jewish Congress, released a
copy of the document. The CIA withheld immediate comment but a U.S.
government source independently confirmed its authenticity
A
CIA
spokesman said the agency could make no definitive comment on the
document. "It will take time to investigate this," spokesman Mark
Mansfield said in response to queries from Reuters.
IRAN-CONTRA/HUD/THORNBURGH (UPI) -- Attorney General Thornburgh
defended his scuttling of a key Iran-Contra trial Wednesday, saying "I've
got a job to do" in protecting national security secrets. In a testy session
with reporters, Thornburgh also said he would "go where the evidence
leads" in the HUD scandal. He did not, however, respond to demands for
an independent investigation of former HUD Secretary Pierce
"It's not
easy" balancing national security against a defendant's right to a fair
trial, Thornburgh said. "You can run but you can't hide from making
tough decisions in this office," he added. "I've got a job to do."
-more-
White House News Summary
Wednesday, November 29, 1989 -- 4
IRRIGATION/LUJAN (AP) -- Secretary Lujan tentatively has decided to
renew long-term water leases for irrigation in central California, but the
Bush administration remains divided on how to ease environmental concerns
over the leases, administration sources said Wednesday. Objections from
the White House prompted Lujan to delay announcement of the lease
renewal plan on Tuesday, according to the sources, who spoke on
condition of anonymity. A spokesman for the secretary disputed
suggestions that the White House had blocked the decision, but
acknowledged that the lease announcement was postponed. "We wanted a
unified administration position on this issue. If delaying the process a few
days will help us reach that, it's that much the better," said spokesman
Steve Goldstein.
GOVERNMENT WASTE/GAO (UPI) -- Government waste from poor financial
management may cost taxpayers up to $150 billion beyond the cost of the
S&L bailout and the HUD scandal, Comptroller General Charles Bowsher
told a Senate panel Wednesday. "I think the $100 billion range is not
unrealistic," Bowsher said when asked by Sen. Glenn the potential cost of
government waste and inefficiency now being uncovered in several
agencies
Glenn said the new report "indicates the atrocious condition
of the federal government's management controls."
(Reuter) -- The U.S. government is losing tens of billions of dollars
a year in waste and fraud because of poor financial controls and
accounting procedures, according to a GAO report released Wednesday.
"We have every major agency in the government acknowledging that they
have weak financial management systems. It's a very scary situation for
the taxpayers and the government," GAO Comptroller General Charles
Bowsher said at a hearing of the Senate Governmental Affairs Committee.
NUCLEAR WASTE (UPI) -- The Energy Department said Wednesday it has
pushed back the projected opening of the nation's nuclear waste dump from
2003 to 2010 because of the legal obstacles and unresolved safety questions
about the proposed site in Nevada. Because of the seven-year delay in
building the permanent underground dump at Yucca Mountain, Nev., the
department called for quick construction of a temporary waste storage
facility -- a proposal sure to ignite controversy in Congress over where
such a facility should be located.
###
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Gorbachev mania hits the Eternal City
By JOHN PHILLIPS
ROME (UPI) Soviet leader Mikhail Gorbachev unexpectedly stopped
his motorcade Wednesday for a walk near the Col osseum and thousands of
che WAY Communist Party Flags and chanting MiViva
Borb a tumultuous the
Borbachev, who met with Italian leaders to discuss the future of
Europe earlier in the day, threw his sightseeing tour with his wife,
Raisa, off schedule when he paused to shake hands with a crowd gathered
outside the Roman amphitheater.
The three-day state visit will culminate in a private audience with
Pope John Paul II at the Vatican Friday, the day Gorbachev leaves Italy
Rom Malta to attend a shipboard summit with President Bush.
He is a lovely person, " 9 a housewife said after Gorbachev,
beaming under his gray fedora, slipped away from the crowd for a
10-minute stroll around the Colosseum' gladiator pits.
Some of the bystanders raised clenched fists and sang communist
hymns.
Plainclothes Kremlin and Italian security men, clearing a path for
the Soviet leader, scuffled with hordes of Italian photographers
scrambling to shap the enthusiastic scene.
Gorbachev later took Raisa out for coffee at the panoramic Casina
Valadier restaurant overlooking the city's = Seven Hills in the Pincio
Gardens.
'Tell all the Italians that I bring them the warm and cordial
wishes and greetings of all the peoples of the Soviet Union, Gorbachev
told reporters.
Gorbachev was late for talks with Prime Minister Giulio Andreotti
at the Chigi Palace because of his spontaneous exchange with the crowd.
The Italian turnout was nowhere near the size of other overseas
forays by the Soviet leader but the welcome was a warm one.
Gorbachev was to finish the day with a banquet given by President
Francesco Cossiga at the Quirinale Palace after attending a concert by
classical violinist Salvatore Accardo.
Cossiga first welcomed Gorbachev at the 16th century palace for
lunch fter he arrived from Moscow at Leonardo da Vinci Airport aboard
an Aeroflot Ilyushin 62. The Gorbachevs looked unusually somber as they
descended from the plane, not waving to officials who stood on the
tarmac waiting to greet them.
Italian security forces lined the routes of the Gorbachev
motorcade. State-run television RAI estimated total police presence in
the Eternal City at 5,000 with snipers posted on rooftops at strategic
points and helicopters clattering overhead.
In his talks with Italian leaders, Gorbachev was expected to
outline his ideas for a Common European Home, a phrase he has used
to describe a Europe unified by common goals and undivided by the Iron
Curtain.
The future of Europe, especially in the wake of political upheavals
in Eastern Europe, is also expected to be the main topic of Gorbachev's
summit meeting with President Bush Saturday and Sunday.
Italian and Soviet officials, who will also talk about security in
the Mediterranean and the Middle East situation, will sign several
accords to bolster the Soviet economy during the visit. The agreements
call for Italian investment in energy, agriculture and automobile and
chemical production.
Gorbachev is only the second Soviet head of state to make an
official visit to Italy. In January 1967, Soviet President Nikolai
Podgorny visited and had a private audience with Pope Paul VI.
Gorbachev will have an audience Friday with Pope John Paul II,
unprecedented for a president who is also general secretary of the
Soviet Community Party.
The Vatican is not calling for a crusade against communism and we
no longer say that religion is the opiate of the people, Moscow's 5
Komsomolskaya Pravda newspaper said last week in a comment that captured
the spirit of the new relationship.
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Soviet Leader Discusses Eastern Europe With Italians<
LaserPhotos ROMI. 2,5,6(
By MICHAEL OUTZEL=
Associated Press writer=
ROME (AR) Saviet President M khail S. Gorbachey waded into
thronos shouting Bravo, Mikhail bravo!!! on Wednesday as he and
his wife tourea ancient Roman sites between talks with Italy's
eaders on the changes in Easter Europe
The rst Soviet Communist Party chief to visit Italy, Gorbachev
was greeted like a concuering hero by thousands of ag-waving
Romans who rare cisplay any enthusiasm for visiting foreign
digni taries.
During a 10-minute stop at the Colosseum, the Kremlin leader and
his wife, Raisa, started into a crowd of spectators and were
instantly enguifed by well-wishers.
A group of young peoole ourst into singing The
Internationale,' the socialist anthem, and others waved the red
and yellow flag of the Italian Communist Party, the nation's
perennial political nunner-up now.
Sunrounded by E ont knot of KGB bodyguards and Italian
security adents, the Gorbachevs emerged beaming after shaking the
hands of ozens in the crowd.
Italy mobilized 5, 000 security agents for the visit and posted
sharpshooters on ooftoos along the motorcade route. Police stopped
one man who rushed toward the motorcade near the premier's office.
Officials said he was carrying a letter and appeared to be mentally
disturbed.
Gorpachev held talks with Premier Giulio Andreotti and attended
a
state dinner in his honor at the Quirinal presidential palace,
once the summer home of Roman Catholic popes.
I and my colleagues were expecting serious talk and a warm
welcome from the Italians," Gorbachev said during a stop at the
Pincio, with a view over Rome, in the Villa Borghese Park. 'My
expectations were perfectly correct.
He had a cafe esoresso at a restaurant, while Mrs. Gorbachev
sioned the guest book saying, We found everything just perfect
here."
During earlier talks with President Francesco Cossiga, the
leaders discussed the dramatic developments in Eastern Europe,
where former Soviet satellite countries freed from Moscow's yoke
are plunging toward democratic reform.
A spokesman for Cossiga, the ceremonial head of state, said the
Italian leader told Gorbachev he was regarded with great
cordiality, warmth of feeling and empathy'' as he struggles to
reform Soviet society.
The presidential spokesman, Ludovico Ortona, said Cossiga told
Gorbachev East-West relations have moved from confrontation to
detente and are at the stage where both sides can build a new
relationship based on cooperation.
In a further sign of Italy's interest in the new Soviet
direction, Foreign Minister Gianni De Michelis said the two
countries had agreed to regular twice-yearly talks at the foreign
minister level, believed to be the first such accord between Moscow
and a Western European country.,
An Italian jury neaded by former President Sandro Pertini said
it had chosen Gorbachev as winner of the Golden Dove'' peace
prize that was previously awarded to late Swedish Prime Minister
Olof Palme, imprisoned South African black leader Nelson Mandela
and U.N. Secretary-General Javier Perez De Cuellar.
During Gorbachev's three-day visit to Italy, to be capped by a
historic meeting with Pope John Paul II at the Vatican on Friday,
Soviet and Italian officials will sign accords aimed at spurring
trade and economic cooperation between the two countries.
Although Italy 15 the Soviet Union's fourth largest Western
trading partner, several Italian firms have maintained business
relations with the Soviets for decades and now are trying to
capitalize on the new spirit of openness Gorbachev has fostered.
The visit comes just orior to a weekend summit off Malta between
Gorbachev and President Bush. Italian officials said they were
eager to get in 'the last European word'' before those talks.
Although the emonasis was on the new tolerance of Gorbachev's
regime, Amnesty International's Rome office issued an appeal upon
Gorbacnev's arrival in Italy for the release of seven Soviet
prisoners it said were being held for political reasons, including
one it said was detained for religious activities.
Italy's Helsinki Committee lit 100 candles on the famed Spanish
Steps to press for greater democratic freedom in the Soviet Union.
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Session<
Eds: Subs DVS 9th graf, Bush said, with 6 grafs to update with
Fitzwater comment, Bush activities; picks up at pvs 10th graf, But
he; cuts last 7 grafs to shorten<
^By BARRY SCHWEID=
AP Diolomatic Writer=
WASHINGTON (AP) = The U.S. budget squeeze may force President
Bush to confront a proposed armed forces cutback even as he
reassures the allies he will not cut a military dea behind their
backs in his first summit with Soviet eader Mikhail S. Gorbachev,
sources say.
On Bush's desk before his takeoff Thursday evening for Malta
coul be a recommendation from Defense Secretary Dick Cheney to
trim the Army, Navv, Air Force and Marine Corps by 275,000, or 12.9
percent rom current levels, defense sources told The Associated
Press en uesday night
The Army would be reduced by 135,000 the Air Force by 100 000
and the Navy and Marine Corps by 40,000 under a proposal from the
U.S. armed services chiefs, said the sources, who declined to be
identified.
Cheriey will ind the recommendation on his own desk when he
flies home from Europe early Thursday. The cuts would be carried
out by 1994 and would involve the elimination of three army combat
divisions, five and a fraction Air Force fighter wings and about 60
naval vessels. the sources said.
The fleet includes 562 vessels, and the idea would be to reduce
to about 500 by 1994.
If Cheney accepts the recommendation, he would take it to the
president before his departure for this weekend' S saltwater summit
with Gorbachey. Richard Darman, the director of the Office of
Management and Budget. is ousning for even deeper cutbacks in the
U.S. military, the sources said.
It was not clear whetner the president would make a decision
before his takeoff.
Bush promised the allies Tuesday that I'm not going to
surprise them'' with any agreement to cut nuclear weapons or reduce
U.S. trooos overseas.
White House sbokesman Marlin Fitzwater today denied any conflict
betweer Bush' S assertion on Tuesday that the summit would not
produce an arms control agreement or any other surprises and his
own emarks, the day before, that Bush was ready to discuss troop
reduct ons In Europe with Gorbachev
seemna ference between the two I felt that what I said
on Monday was exactly the same as what he said on Tuesday, the
spokesman said. He added that Bush looks forward to a very
successful summit He thinks a lot will be accomplished.'
Fitzwater said that Bush planned to spend most of the day in
preparation for the summit, and would also discuss the summit at
some length at a onivate dinner at the White House tonight for
Canadian -nime Minister Brian Ironey.
The spokesman also said tnat Bush had discussed the summit today
by phone with West German Chancellor Helmut Kohl. They also
discussed Kohl new proposal for the reunification of Germany, the
spokesman said.
Fitzwater declined to comment on the report that Bush mi ght be
forced to consider a U.S. armed forces cutback even before he
leaves for Malta.
Bush told reporters Tuesday that he and Gorbachey may discuss
possible military cutbacks in a general way's when they meet
Saturday and Sunday.
But he added, In writing, I have made clear to Mr. Gorbachev -
intmy handwriting, SQ he knows it comes from me, not the
bureaucracy - that this is not a summit for arms control
agreement. "
Similarly, Cheney pledged to the NATO allies at a meeting in
Brussels that they would be consulted before any U.S. troops were
withdrawn from Western Europe.
The United States will continue to have its forces in Europe
as long as our NATO allies want them (and) need them there, said
a senior U.S. defense official who spoke to reporters in the
Belgian capital on condition of anonymity.
NATO and the Warsaw Pact are negotiating in Vienna on a Bush
proposal to reduce U.S. troops in Europe from 305 000 to 275, 000,
provided the Soviets reduce by about 325,000 to reach the same
level.
Bush administration officials confirmed on Monday an easing of
East-West tensions had caused the president to consider proposing
even deeder cutbacks on both sides.
The U.S. armed forces on Nov. 1 stood at 2,127,965, with 770,091
in the Army. 590,473 in the Navy, 569,783 in the Air Force and
197 618 in the marines.
The services' recommendation to Cheney would cut the Air Force
and Army by about 17.5 percent and the Navy and Marines by about
5.1 percent.
The sources said a reduction of 275,000 overall inevitably would
involve cutbacks in U.S. troops in South Korea as well as Western
Europe.
Pentagon officials recommended cutting 23,000 jobs involved in
weapons procurement for the Army and Air Force, The Washington Post
reported today. A final decision has not been/made, but members of
Congress have complained that the cuts are aimed mainly at workers
and field-level positions while not reducing the ranks of
management.
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MOSCOW HOPES FOR PROGRESS ON START ACCORD AT MALTA
MOSCOW Reuter The Sovi et Union Wednesday agreed with
Pres: dent Bush that no arms control deals would be gned at
this weekend summit but indicated It hoped for progress on
reducing strategic nuclear arms
The talks between Bush and Kremlin chief Mikhail Gorbachev
aboard ships off Malta could accelerate an accord on halving
strategic nuclear weapons, Foreign Ministry spokesman Yuri
Gremitskikh told a news conference
OF course no formal agreements will be signed near Malta S
shores But I think we are all enti tled to expect consider able
progress as Far as concepts and mutual under standing are
concerned, Gremitskikh said.
The talks of the two leaders might give a new impulse to
the talks on strategic arms reductions and speed up conclusion
of the corresponding treaty, he said,
Bush, out to reassure allies Fearing a repeat of Ronald
Reagan's near-giveaway of the Western nuclear arsenal at the
1986 Reykjavik summit, vowed Tuesday to avoid surprises at his
meeting with Gorbachev.
I am not going to enter into an arms control
agreement
Bush said in Washington.
Gremitskikh's comments indicated that, while Moscow accepted
this, it intended to stress the strategic armaments issue at the
Dec. 2-3 summit and hoped to make progress.
Gremitskikh also said Moscow thought naval arms control
should be, discussed between the superpowers, suggesting this
would also be brought up by the Soviet side.
Our position is that naval armaments should become one of
the directions of the disarmament dialogue, he said. It is
impossible to cut armaments in one direction, leaving aside
another.
We think that talks on cutting naval armaments will start
sooner or later, and the sooner, the better.
The State Department said Tuesday that Gorbachev might
propose a naval arms control initiative at the Malta summit.
Defense Secretary Dick Cheney, speaking Wednesday after a
NATO defense ministers' meeting, rejected suggestions that the
United States should try to reach a naval arms agreement with
Moscow.
I think we should resist any efforts by the Soviets to
engage us in naval arms control, he told a news conference in
Brussels.
The alliance says it needs strong naval forces to reinforce
Europe from North America in a time of crisis.
One U.S. official said Moscow had reduced its nuclear force
in the Mediterranean for the summit from a normal deployment of
six combat vessels and 14 auxiliary vessels to four combat
vessels and four auxiliaries.
REUTER
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KOHL STIRRING UP NATIONALISM WITH FEDERATION CALL, MOSCOW SAYS
By Susan Cornwell
MOSCOW, Reuter - The Soviet Union Wednesday condemned a call
by West German Chancellor HeImut Kohl For a federation of East
and West Germany accusing him of trying to stir up East German
nationalism
We can see clearly an attempt to push the recently-started
process of removation in the GDR (East Germany) in a nationalist
direction, to prescribe the noute and meaning of reform,
Foreign Ministry spokesman Yuni Gremitskikh said.
He said Kohl had acted without considering the feelings of
other European countries, especially East Germany, noting that
East Berlin's leaders had said reunification was not on their
political agenda.
It is completely clear that such actions do not correspond
in any way to the Helsinki principles
and have nothing in
common with universally adopted norms of relations between
sovereign states, Gremitskikh told a regular news conference.
Kohl, in a speech to parliament Tuesday, outlined a 10-point
German unity program and offered economic support to East Berlin
in Bonn's boldest response yet to radical changes sweeping
through East Germany.
But Gremitskikh said Kohl was swimming against the tide of
opinion from other European states ---------- including the Soviet Union
which suffered at least 20 million killed in World War II and
did not want to change the postwar borders.
We would like to hope that Bonn will not lose its sense of
realism,
he said.
One should not forget that there are dozens of other
states in Europe which are intensely interested in preserving
stability but not in the destruction of territorial political
structures, with all resulting dangerous consequences for the
peaceful future of European peoples, Gremitskikh said.
Gremitskikh also accused Kohl of interfering in East
Germany's internal affairs by making economic aid contingent on
democratic reform.
The further development of relations with the GDR is being
made directly dependent on Fulfillment of a number of
conditions, including demands to change the political and social
system, he said of Kohl's speech.
Asked whether he was saying Moscow was flatly opposed to
German reunification, Gremitskikh said the division of Germany
could be resolved only as part of a broader process of
overcoming the division of Europe.
His words indicated that while the Kremlin was willing to
talk about dissolving military blocs, it had no wish to see
single Warsaw Pact countries especially Moscow's strategic
ally East Germany - slip out of the alliance alone and forge
links with the West.
REUTER
Reut11:18 11-29
Bush Library Photocopy
Preservation
White House News Summary
Wednesday, November 29, 1989 -- 1
11:00 A.M. NEWS UPDATE
CZECH/FREE ELECTIONS (Prague/Reuter) -- A senior Czechoslovak
Communist Party official promised Wednesday there will be free elections in
the country, possibly within 12 months. Politburo member Vasil Mohorita
told a news conference, "Free and democratic elections will be held on a
date which will be declared by the Federal Assembly."
Asked how soon
elections could be held, Mohorita replied: "I think they are possible
within 12 months.' "As the Communist Party we will compete for as many
seats as possible, but I can hardly tell you now whether it will be a
majority of minority." Asked whether the communists would allow another
party to govern if it won the election, Mohorita replied: "It will not be
up to our party to allow it."
NATO/CHENEY (Brussels/UPI) -- Secretary Cheney said Wednesday the
United States remains fully committed to NATO and will not unilaterally
reduce forces earmarked for the alliance. Cheney also echoed President
Bush's comment Tuesday that the President has "no hidden agenda" for
his
shipboard
summit
such as a specific arms control plan. At the end
of a two-day session of NATO defense ministers, Cheney told a news
conference, "We will not act unilaterally with respect to any reductions in
U.S. deployments in NATO." Western efforts should concentrate on
completing talks on limiting conventional forces in Europe with the
Warsaw Pact in Vienna and having them implemented, he said. He said a
CFE agreement is important because "it will not only allow for some modest
reductions on our side but it requires massive reductions on the Soviet
and Warsaw Pact side."
NATO/ARMS CUTS (Brussels/AP) -- Despite the reforms sweeping the
East bloc, NATO defense ministers agreed today to refrain from unilateral
reductions in conventional arms until a formal agreement with the Warsaw
Pact can be reached
"A time of rapid political change presents the
West with new opportunities, although the resulting uncertainty also
carries potential risks," the ministers said in a statement. "Our defense
requirements must continue to be assessed against the realities of Warsaw
Pact military capabilities," they said.
E. GERMANY/REUNIFICATION (E. Berlin/AP) -- East Germany's
state-controlled newspapers today joined Communist leaders and some
dissidents in rejecting West German Chancellor Kohl's call for eventual
German reunification. "What Does Bonn Want: Anschluss [Annexation] or
Real Partnership?" asked the Junge Welt newspaper in a headline. After
Kohl made his proposal on Tuesday, Communist Party leader Egon Krenz
said reunification could conjure fears of a Nazi-era Germany, "and I know
no one in the world who would like such a Germany." But Krenz welcomed
Kohl's call for closer cooperation between the Germanys.
AIRLINER/EXPLOSIVES (Los Angeles/UPI) -- Authorities discovered a
possible bomb in a piece of luggage bound for a plane belonging to the
Colombian airline that was hit by deadly explosions earlier this week,
officials said Wednesday. The device was detonated early Wednesday but
it was not immediately confirmed if the package inside the luggage was
actually a bomb. "We have something that may or may not be a device,"
said Lt. Helen Kidder of the Criminal Conspiracy Section. "Because of the
events in Colombia the last couple of days we're not taking any chances."
-more-
White House News Summary
Wednesday, November 29, 1989 -- 2
GORBACHEV (Headline News) -- Soviet President Gorbachev is on an
historic visit to Italy. He and his wife arrived in Rome this morning and
were greeted with a 21-gun salute. Among the first items on his
diplomatic visit is a visit to Italy's tomb of the unknown soldier to pay his
respects. Friday Gorbachev will be meeting with Pope John Paul II. The
Vatican says the Pontiff will ask for permanent diplomatic relations and an
end to Soviet repression of the Ukrainian Catholic Church. Mr. Gorbachev
is said to be assessing European views before he heads off to this
weekend's superpower summit.
CHINESE STUDENTS (Headline News) -- President Bush is expected to
veto a bill that would extend Chinese student visas in the U.S. The
students, fearing reprisals if they return right now, are urging the
President to support them
Wuer Kaixi [one of the pro-democracy
protesters who escaped to the U.S.] is fighting to save legislation to let
more than 40,000 Chinese students stay in the U.S. "We think what is at
issue is not immigration, but human rights," he said. A bill extending
the students' visas sailed through Congress, yet President Bush is
expected to veto it. White House sources say the President last June let
the students apply for a one-year extension and that's enough.
Congressional sources say U.S. Ambassador Lilley was told by the Chinese
government that unless Bush vetoes the measure, all educational exchanges
would be cut off
But the students say the U.S. is temporarily home
for leaders of their pro-democracy movement and fear harsh repercussions
if they're not allowed to stay. "We will face certain executions
when we
are forced to return to China," one said. A small group of students
delivered an appeal to the White House and State Department; 30 senators
from both parties signed a letter to the President saying, "Just as you
have celebrated the courage of peoples of Eastern Europe in their recent
democratic successes, we ask only that you support the students of China
in their continuing struggle." That jubilation over Eastern Europe's steps
toward reform has been bitter sweet to Chinese students, who say they
want from President Bush the same kind of unqualified support he's given
the people of Poland, Hungary and East Germany.
SALVADORAN MURDERS/STATE DEPT. (Reuter) -- The Bush
administration Tuesday described as "inaccurate" and "unfair" a report by
a human rights organization that accused it of covering up crimes by El
Salvador's military. The report by Americas Watch said Washington was
overlooking overwhelming evidence of the possibility of armed forces
involvement in the killings of six Jesuit priests. "Nothing could be more
inaccurate or unfair," spokeswoman Tutwiler told reporters. She said the
White House and other Bush administration officials condemned the killings
"in the strongest possible terms."
LEBANON (Headline News) -- Lebanon's pro-Syrian cabinet said it does
not plan a military operation to remove defiant Gen. Aoun from the
presidential palace. Both sides seem ready for combat. Aoun has fortified
the palace with his Christian army, and Syrian soldiers have surrounded
the Christian army enclave. Thousands of the general's supporters held
an all-night vigil outside the palace; they protested newly elected
President Hrawi's earlier request to use military force to remove Aoun.
-more-
White House News Summary
Wednesday, November 29, 1989 -- 3
PAN AM 103/JUSTICE DEPT. (Headline News) -- The U.S. Justice
Department is trying to prevent Pan Am from obtaining government
documents about the investigation of Pan Am Flight 103
The airline
subpoenaed government information in order to defend itself against law
suits filed by relatives of those killed in the disaster. Government
officials say they moved to quash the subpoenas last week on the grounds
that the requested information is all part of an ongoing criminal
investigation.
JAPAN-U.S./SATELLITES (Tokyo/UPI) -- The U.S. and Japan failed to
reach agreement in their dispute over foreign access to Japan's satellite
market, officials from both sides said Wednesday. "The talks produced no
concrete results,' Assistant U.S. Trade Representative Joseph Massey told
reporters after two days of discussions
"It will get urgent if we don't
get results," said one member of the U.S. delegation, who declined to be
identified.
GNP (UPI) -- The Commerce Department upped its estimate of the
nation's economic growth in the third quarter to a 2.7 percent seasonally
adjusted annual rate Wednesday, reflecting a lower-than-expected trade
deficit during the three-month period. Meanwhile, the department
confirmed that inflation during the July-September quarter rose at an
annual rate of 2.9 percent as measured on a fixed rate basis, the lowest
quarterly rate since the third quarter of 1986
Still, economists warned
that growth in the quarter was inflated by car sales pushed artificially
higher by sales incentives and inventory build-ups in the manufacturing
sector. Few analysts expect the growth to continue at the same pace in
the fourth quarter.
(AP) -- The U.S. economy grew at a moderate annual rate of 2.7
percent from July through September, the government reported today, but
analysts say growth is slowing in the current quarter
Most of the
revision [from an advance estimate of 2.5 percent] was attributed to a
better-than-anticipated trade performance
Still, many analysts believe
the economy will have a tough time meeting the target because of a
dramatic slowing in the current three-month period
"My view is we
can stay out of a recession, but just barely," said economist David Jones
of Aubrey G. Lanston & Co., a government securities dealer in New York.
FOOD PRICES (UPI) -- Food prices this year are showing their largest
increase since 1981 -- nearly 6 percent -- but price increases should run
at a more normal level in 1990, a government economist said Wednesday
"When data are available for all of 1989, the Consumer Price Index for food
is expected to average about 6 percent above last year. This is the
largest increase since 1981," economist Ralph Parlett said in comments
prepared for the Agriculture Department's annual Outlook Conference. "In
1990, food prices are expected to rise 3 to 5 percent, a slower pace than
this year."
White House News Summary
Wednesday, November 29, 1989 -- 1
2:00 P.M. NEWS UPDATE
EL SALVADOR (San Salvador/AP) -- Fighting broke out in the affluent
western sectors of San Salvador again today, and U.S. officials said leftist
guerrillas briefly overran the home of an American Embassy officer. The
rebels also burned a mansion just blocks away from the American
ambassador's official residence, but no injuries were reported to U.S.
employees, according to the American officials
The rebels said on
their clandestine radio today they had attacked the headquarters of the
Joint Chiefs of Staff with mortars. But officers on the scene said none
had fallen in the compound, which also houses the Defense Ministry
Secretary of State Baker later told reporters in Washington that the rebels
were "shooting their way into and invading certain private homes. They
briefly overran the home of a U.S. Embassy officer but were driven out
by the Salvadoran armed forces."
(San Salvador/Reuter) -- Fresh battles in San Salvador Wednesday
forced the U.S. embassy to close down and left-wing rebels demanded the
evacuation of leading hotels in embattled districts
Security guards and
Salvadoran army officers at the bunker-like U.S. mission said it had been
closed until further notice due the fighting. A Western diplomat said
there was shooting throughout Escalon, San Benito and Lomas de San
Francisco where most of the U.S. personnel live.
(Headline News) -- Leftist guerrillas reportedly launched a blistering
pre-dawn attack in affluent neighborhoods north and south of San
Salvador. One target: The home of an American diplomat; it was
reportedly burned. Mark Uhlig, a reporter from the New York Times, is
on the scene and reports
:
"There's still fighting going on
in
a
number of the southern areas, although apparently the fighting has ended
in the city's most affluent areas UPI reports the government is
countering the rebel offensive with rockets, tanks and armored vehicles.
Secretary Baker confirmed the renewed fighting and the attack on
unidentified Americans living there. "The FMLN guerrillas attacked again
last night in the Escalon neighborhood, shooting their way into and
invading certain private homes. They briefly overran the home of a
United States Embassy officer, but were driven out by the Salvadoran
armed forces. At the moment it is our belief that all United States
personnel and their families are safe, but several are in their homes in
this area of heavy fighting," Baker said. The State Department also has
confirmed reports the rebels have taken over the Japanese Embassy in San
Salvador.
EL SALVADOR/SOVIETS/BAKER (AP) -- Secretary Baker urged the
Kremlin today to stop the flow of Soviet-made weapons to leftist rebels in
El Salvador and said President Bush would press President Gorbachev at
their weekend summit to abandon this "Cold War relic." Baker said
despite repeated and specific reassurances from Moscow of a cutoff, the
arms are still flowing from Cuba and Nicaragua to rebels fighting the
U.S. -backed Salvadoran government. "Either the Nicaraguans are lying to
the Soviet Union or the Soviet Union is lying to us," he said at a White
House news conference. "We prefer to think it's the former."
-more-
White House News Summary
Wednesday, November 29, 1989 -- 2
E. EUROPE/BAKER (AP) -- Secretary Baker said today the U.S. and
Soviet Union should seek "mutual advantage" from the dramatic changes in
Eastern Europe, and hinted that President Bush would back improved
Soviet trade opportunnities at this weekend's superpower summit. At the
same time, Baker said the two days of talks between Bush and President
Gorbachev are "not an arms control summit."
Baker said it would be a
mistake not to support the reform movement sweeping the Soviet Union and
Eatsern Europe even if there is a chance the pace may bring some
temporary instability. "The real question is not whether perestroika will
succeed or fail," he said. "The real question is this: Do you engage the
Soviet Union in a search for mutual advantage in this time of uncertainty?
And our answer to that is a resounding 'yes.'"
SOVIETS/AP POLL (New York/AP) -- Americans' suspicions of the Soviet
Union's motives are fading rapidly, with a majority of people now
convinced that the Soviets do not seek to dominate the world, a national
poll has found
The poll found overwhelming belief that the Soviet
leader seeks real reform in his country, although opinion was mixed on his
prospects. Both men were highly popular in the Media General-AP poll
[Bush -- favorable opinion: 70%, unfavorable: 17%; Gorbachev --
favorable opinion: 68%, unfavorable: 16%], with Gorbachev out-polling
Bush among the most-educated Americans. A plurality said Gorbachev has
done more than Bush to ease East-West tensions [Gorbachev: 41%, Bush:
29%]
Forty percent of the 1,117 adults surveyed Nov. 17-25 rated
Bush as "too cautious" in encouraging reform in the Soviet Union and
Eastern Europe. Still, 46% said he was doing enough, the rest were
unsure. Respondents by a 2-1 margin favored establishing normal trade
relations with the Soviets
U.S. foreign aid to the Soviets was soundly
opposed.
U.S.-SOVIET TRADE/MITCHELL (UPI) -- Sen. Mitchell called Wednesday
for a temporary lifting of trade restrictions against the Soviet Union and a
leading U.S. role in the transformation of Europe. Mitchell pledged his
full support to President Bush at this weekend's summit and said
Americans share Bush's desire for an enhanced understanding between the
superpowers. Mitchell also expressed hope for "specific steps" leading
toward a more peaceful and productive relationship with the Soviet Union.
Economics and trade "are important elements of that relationship," said
Mitchell, who added Bush should offer a "more meaningful response" to the
changing relationship than merely offering technical advice to the Soviets.
Mitchell also said he was pleased that Bush planned to discuss arms control
and military force strengths at the Malta summit with President Gorbachev
to make certain "progress is on track so that an agreement can be signed"
at a full-fledged summit next year.
GERMANY/NATO/CHENEY (Brussels/UPI) -- Secretary Cheney said it is
too early to speculate what effect a unified East and West Germany would
have on NATO. But Cheney, speaking at the end of a two-day conference
of NATO defense ministers, said he is sure West Germany would remain an
integral part of the alliance. "There is no question in my mind
that the
Federal Republic is in fact and will continue to be an integral part of
NATO just as the United States will be," Cheney said. He said the issue
of reunification is best handled by the Germans themselves.
-more-
White House News Summary
Wednesday, November 29, 1989 -- 3
KOHL/SOVIETS (Moscow/Reuter) -- The Soviet Union Wednesday
condemned a call by West German Chancellor Kohl for a federation of East
and West Germany, accusing him of trying to stir up East German
nationalism. "We can see clearly an attempt to push the recently-stated
process of renovation in the GDR in a nationalist direction, to prescribe
the route and meaning of reform," Foreign Ministry spokesman Yuri
Gremitskikh
said
"It is completely clear that such actions do not
correspond in any way to the Helsinki principles and have nothing
in
common with universally adopted norms of relations between sovereign
states," Gremitskikh told a regular news conference.
START ACCORD/SOVIETS (Moscow/Reuter) -- The Soviet Union Wednesday
agreed with President Bush that no arms control deals would be signed at
this weekend's summit but indicated it hoped for progress on reducing
strategic nuclear weapons
"Of course no formal agreements will be
signed near Malta's shores. But I think we are all entitled to expect
considerable progress as far as concepts and mutual understanding are
concerned," Foreign Ministry spokesman Yuri Gremitskikh said.
DEFENSE BILL/PRESIDENT (UPI) -- President Bush signed a $305 billion
defense authorization bill Wednesday but said he is concerned Congress is
meddling in his role as overseer of foreign policy and national security.
Signing the bill into law, Bush said he did so "notwithstanding the
reservations that I have with certain of its provisions," including
congressional limits on deployment of military personnel overseas and
efforts "to legislate foreign policy. "I am particularly concerned about
those provisions that derogate from the President's authority under the
Constitution to conduct our foreign policy, including negotiations on behalf
of the United States," Bush said in a statement announcing his action.
CHEMICAL WEAPONS/SOVIETS (Geneva/Reuter) -- A U.N.-sponsored
disarmament body should be able to agree by the end of January on how
to conduct inspections to ensure observance of an international treaty
banning chemical weapons, a Soviet negotiator said Wednesday. Sergei
Batsanov, chief Soviet negotiator on chemical weapons, said 1989 had seen
significant movement toward a ban but reiterated his country's worry that
the U.S. might want to keep producing the weapons after a treaty comes
into force
"Hopefully we will be able to bring (it) to conclusion SO as
to include it in January in the draft convention," he said.
MX MISSILE BASES (AP) -- The Air Force has chosen bases in six states
-- Louisiana, Texas, Washington, North Dakota, Arkansas and Michigan --
as sites for the railroad-based version of the MX nuclear missile, Defense
Department sources said today
"The missiles will come out of the
silos and be put on trains," said one source. "Hopefully, it will be
completed by 1994, but that clearly depends on the budget."
PLO/U.N. (Rome/AP) -- A U.N. group today ignored U.S. threats to cut
its funds and voted overwhelmingly to help the PLO teach Palestinians how
to grow food in Israeli-occupied territories. Only the U.S. and Israel
voted against the resolution
Gerald Monroe, the U.S. representative
to the organization, demanded a roll call vote and told the conference it
"should not allow this precedent by presenting highly political issues. If
that occurs, the FAO will cease to be effective."
-more-
White House News Summary
Wednesday, November 29, 1989 -- 4
(Headline News)
--
[The issue of the PLO's status is] enough for
the U.S. to threaten the U.N. with a total cutoff in American funding.
And the PLO has a name for the American threat: blackmail. The PLO's
deputy head of mission says: "In fact, it might backfire against the U.S.
administration using this very ugly bad tactic.'
U.S. Ambassador
Pickering says, "We're interested in finding a way to end this particularly
silly idea that the Palestinians can be declared a state here in the United
Nations when they have none of the attributes of a state. Pickering says
the solution is not to present the resolution
Secretary-General Perez
de Cuellar says the U.S. has no business linking [the PLO status with
American funding]. "I don't like the word threat, because you cannot
threaten me if I ask you to pay what you owe me," [referring to back
dues owed by the U.S.] Despite the U.S. threat, the PLO says it has the
votes in the General Assembly to upgrade its status.
S&Ls/WALL (UPI) -- Three public interest groups, [the National
Taxpayers Union, Public Citizen, and Citizens Against Government Waste],
and an influential analyst, [Bert Ely], Wednesday urged President Bush to
dismiss top thrift regulator M. Danny Wall, who they said appears to have
knuckled under to political and industry pressure. "Mr. Wall's behavior
during the savings and loan crisis, in which he frequently appeared to
knuckle under to political pressure from members of Congress and the
thrift industry shows that he is not qualified to hold office in an
administration dedicated to high ethical standards of conduct," the
advocates said in a letter to Bush.
ENVIRONMENT/POLL (AP) -- A slim majority of Americans believes the
quality of the local environment has neither deteriorated in recent years
nor will in the coming three years, according to a national survey released
today. Smog, global warming and other threats to the atmosphere are the
most troublesome of the environmental problems facing the nation now,
according to the poll results. The survey was conducted by Vince
Breglio, chief pollster for President Bush's 1988 campaign, and sponsored
by the Union of Concerned Scientists, a public interest group. In the
polling sample of 1,200 registered voters interviewed in late October and
early November, 63 percent said the quality of the environment in which
they live is about the same or better than it was three years ago.
Thirty-six percent said it was not as good. When asked about the coming
three years, 51 percent said they expected their environment to either
improve or stay the same, while 45 percent said it would worsen.
###
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
November 29, 1989
REMARKS BY THE PRESIDENT
AND PRIME MINISTER MULRONEY
UPON DEPARTURE
The Diplomatic Entrance
8:45 P.M. EST
THE PRESIDENT: Let me just say that Prime Minister
Mulroney has very generously come down here and given us a very full
briefing, his observations from a long and detailed trip that he took
to the Soviet Union. I don't know why he is not more wiped out by
jet lag because I last saw him just a few weeks ago in Central
America -- he'd come from Asia. Now he's been to the Soviet Union.
But it was most generous, Mr. Prime Minister, for you to come here.
And on behalf of the Secretary of State and Brent Scowcroft, John
Sununu, those of us who will be in the meetings, I can't tell you how
much I appreciate your advice and your observations.
And it's a little unorthodox, but if you'll excuse me --
I understand you're going to take some questions here.
PRIME MINISTER MULRONEY: I will.
THE PRESIDENT: All right. Thank you. And our love to
Mila, and thank you, sir, very much. It was most generous of you.
PRIME MINISTER MULRONEY: Thank you very much.
Q
What's the best advice he gave you, Mr. President?
Q
What was the best advice?
Q
Mr. Prime Minister, what did you give him? What did
you tell him? Right off the bat, what's the big one?
Q
Don't you think they ought to try to achieve
something at this summit?
PRIME MINISTER MULRONEY: Well, I think they probably
will. I had lengthy meetings with Mr. Gorbachev and Prime Minister
Ryzhkov and Mr. Shevardnadze in the Soviet Union, and my belief is
that President Gorbachev looks upon the Malta summit not with a view
to achieving any miracles, but with a view to building a sustained
and solid relationship with President Bush that will give rise to
major accomplishments down the road.
I believe that -- I think that he's in for the long haul
himself. I think he's got an ambitious, progressive agenda for the
future. And given some ongoing changes, it may be an agenda that can
be accommodated as time goes on.
And I had a very good meeting with the President and his
advisors tonight. I find that, as the leader of the Alliance,
President Bush is in a -- has a very constructive approach to the
challenge that exists, the opportunities. He's very sensitive and
alive to the unique opportunities that are there, not in Malta, but
in the months and the years that will follow Malta. And so I'm very
pleased with our meeting and I'm, as a member of the Alliance and as
Prime Minister of a neighboring, friendly country, I'm very happy
with the attitude and the prospects.
MORE
- 2 -
Q
What did President Bush ask you, Mr. Mulroney? What
was on the top of the agenda tonight? What did you advise him when
he goes to meet with Mr. Gorbachev two days from now?
PRIME MINISTER MULRONEY: Well, as I say, we've had very
extensive recent meetings with President Gorbachev and his
colleagues, and I gave the President and his colleagues our view of
the opportunities and the attitudes and how we best think they should
be grasped. We think that President Gorbachev is for real, that he
is in for the long haul, and that his -- some of his suggestions are
worthy of thoughtful and generous response.
Q
Like what? What in particular?
PRIME MINISTER MULRONEY: On the basis of that, there are
some gestures that can be taken, to respond to Helen's question.
There are gestures, for example -- we think that there is -- the
President, among other things, could consider observer status at the
GATT for the Soviet Union; that the President could accept an idea
that at the end of every economic G-7 summit that there be a meeting
with the outgoing chairman of the summit and President Gorbachev.
After all, the G-7 -- the harmonization of monetary and
economic policies of the G-7 has brought about the greatest sustained
economic growth in modern history. And some of those ideas would
clearly be of benefit to President Gorbachev, who says very clearly
that what he wants to do is integrate the economy of the Soviet Union
more totally into those economies that have known such success. But
there's a long way for him to go, and one of the ways that this could
be done is by receiving firsthand the views and the opinions of the
outgoing president -- or chairman of the G-7 summit, which this year
happens to be President Bush -- and next year will be another one of
us.
But it could put in train a very valuable series of
consultations that would be beneficial to President Gorbachev and
would bring the Soviet Union more closely into the ambit of the
industrialized nations.
Q
Do you think there will be any conditions, sir?
Should there be any conditions, sir?
Q
-- assurances should Mr. Bush give? What political
assurances should he give Mr. Gorbachev?
PRIME MINISTER MULRONEY: I don't think that President
Gorbachev is looking for any political assurances from President Bush
beyond the assurance that he speaks very clearly for the Alliance,
which he does; that the Alliance is committed to a constructive
relationship. We're encouraging the events in Eastern Europe. We
realize that a lot of this has come about because of the attitudes
set in train by President Gorbachev. And this has to be responded
to. And President Bush is in the process of preparing to do
precisely that.
Q
Should there be any conditions, sir? Should there
be any conditions? If you're suggesting the Soviet Union should have
observer status at GATT and perhaps at the G-7, is that tomorrow --
PRIME MINISTER MULRONEY: I never suggested that they
have observer status at the G-7. That they should have observer
status at the GATT, that there might be a series of steps to bring
them more closely into the IMF and World Bank ambit in a progress
manner over a period of time. But that the chairman of the G-7 be
mandated on an outgoing basis to meet with President Gorbachev on an
ongoing basis. That was my -- that was one of my -- one of many
suggestions that we made.
Q
What did he think of that? What did he say to that?
PRIME MINISTER MULRONEY: What did President Bush think
of it? I think he kind of liked it.
MORE
- 3 -
Q
Prime Minister, the administration has been
criticized for reacting very slowly to events in Eastern Europe. Do
you share that perception?
PRIME MINISTER MULRONEY: The administration has a
responsibility to act with prudence. President Bush is President of
the United States and leader of the Western Alliance. And it is
important that he act not in haste, but that he act effectively. And
I believe that his intensive preparations and his very constructive
attitude, I believe that this is going to bring about good results.
And I think that's the way that we should approach it.
Q
He assured you of no surprises here? He assured you
of no surprises, no foreswearing nuclear arms?
PRIME MINISTER MULRONEY: Oh, you can be certain of that.
or
Is Gorbachev in trouble?
PRIME MINISTER MULRONEY: Gorbachev is not in trouble. I
think that he's remarkably popular, inside and outside the Soviet
Union. The Soviet economy is in trouble. The Soviet economy is in
big trouble. But he's in the -- his reforms are designed to improve
that. And it is important, I think that as he seeks to improve his
own economy, that it's in our interest, the interest of the West, the
interest of the industrialized world, to cooperate with him, to
assist him in bringing about and achieving these historic reforms.
Q
Mr. Prime Minister, did you discuss any specific
issues? I'm thinking of some of the highlights from your trip last
week. Did you discuss, for example, any sort of environmental
agreement that he might enter into with the Soviets regarding the
Arctic or a demilitarization of the Arctic -- any of those things?
PRIME MINISTER MULRONEY: Well, certainly not the last
two you mentioned. But we discussed many specifics, yes.
Q
Bilateral issues, sir? Were any bilateral issues
discussed tonight?
PRIME MINISTER MULRONEY: Yes, we discussed some
bilateral. issues.
Q
Did you discuss lobster, sir? Anything about
lobster? (Laughter.)
PRIME MINISTER MULRONEY: You can always count on the
Canadians.
Q
How about Salvador?
Q
Did you discuss El Salvador?
PRIME MINISTER MULRONEY: Yes, we did.
END
9:00 P.M. EST
George Bush Presidential Library
Transfer Sheet
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ACCESSION NUMBER:
Bush Presidential Records
1993.0001
FOIA/SYSTEMATIC
PROCESSING CASE
Office of the President
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Transferred During Processing
2009-0166-S
The following material was transferred to:
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Book Collection
Museum Collection
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Other (Specify):
DESCRIPTION:
White House Photograph: P08380-04A [President Bush and Brian Mulroney]
When transferring
Donor:
material to the
museum
Donor Org.:
collection,
complete the
Address:
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Box Number:
fg
28
Folder Title:
OA/ID Number:
Wednesday, November 29, 1989
90527-014
Transferred by:
Deborah Wheeler
Date of Transfer:
10/27/2009
Received by:
Mary Finch
Date Received:
10/27/2009
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Photocopy from George Bush Presidential Library
Photocopy from George Bush Presidential Library
nd yve bothod all AUN 02 75004 311HM 191.0 1.10
FROM
THE WHITE HOUSE
WASHINGTON. D.C.
C. Dickie Williamson
2000 Spanish Trail
Fort Worth, Texas 76107
THE PRESIDENT
November 29, 1989
Dear Dick:
I was sorry to learn from Joe Tilley that you have
not been well. I'm glad to know that you are now home
and I hope this note finds you feeling better. Please
know that Barbara and I are thinking of you.
With warmest best wishes to you and Gail,
Sincerely,
G Bul
JB
8805
WILLIAM L. SLOVER
1224 SEVENTEENTH STREET, N.W.
xer
WASHINGTON n C
FROM
THE WHITE HOUSE
WASHINGTON, D.C.
Mr. William L. Slover
1224 Seventeenth Street, N.W.
Washington, D.C. 20036
'ED
D
-
29
-
-
-
THE PRESIDENT
November 29, 1989
-
-
-
Dear Dusty,
-
Please forgive the delay in responding to your good
-
letter of October 31.
Many thanks for sending along the copy of The Deke
Quarterly. Thanks, too, for coming to the dinner for
-
Diane. Barbara and I loved seeing you and Dorothy again.
.
-
Warmest regards, in which Barbara joins.
Sincerely,
cc: J.Burmuister
Cy/
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