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Wednesday, November 29, 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 Old Leather COLLECTION Elegant Leather Gift Ideas from the Old Leather Collection by Hugo Bosca. These fine accessories are hand-crafted by Bosca artisans in the centuries-old Roman manner. The leather. 1 Old Leather, is oak- tanned slowly and laboriously and originated in the PASSENT Fruscati wine country near Rome. Our Collection includes items for Personal, Business and Travel use, designed and produced with old world truditions. Prices start at $22.50 to $75.00. BECKERS 1850 M ST NW PRINCE GEORGES PLAZA WHEATON PLAZA LAUREL CENTRE TYSONS CORNER CENTER SPRINGFIELD MALL LAKEFOREST MALL FAIR OAKS MALL ANNAPOLIS FASHION FESTIVAL MALL Fine Luggage, Leather Goods. Handbags and Gifts since 1876. 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 Restaurant Cruise Ship & DANDY ENJOY THE HOLIDAYS ABOARD THE DANDY Share the romance, warmth and excitement of New Restaurant Cruise Ship DANDY. Your dinner or Years Eve, a Christmas luncheon cruise or a Christ- luncheon for two, a small group, a family celebra- mas dinner party with friends, loved ones, or busi- tion or corporate function for 200 will be the high- ness associates. Washington's spectacular monu- light of your Holiday Season. Welcome aboard the ments will be just outside your window as you dine DANDY, the ship for all seasons, the ship for all and dance on the climate-controlled all-weather reasons. Available Daily Mixed Beverage Restaurant Major Credit Cards Honored Reservations - (703) 683-6076 Information Only - (703) 683-6090 Potomac Party Cruises Inc., Zero Prince Street, Old Town Alexandria, Virginia 22314 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 $100 billion range is not unrealistic," Bowsher said when asked by Sen. Glenn the potential cost of government waste and inefficiency now being uncovered in several agencies Glenn said the new report "indicates the atrocious condition of the federal government's management controls." (Reuter) -- The U.S. government is losing tens of billions of dollars a year in waste and fraud because of poor financial controls and accounting procedures, according to a GAO report released Wednesday. "We have every major agency in the government acknowledging that they have weak financial management systems. It's a very scary situation for the taxpayers and the government," GAO Comptroller General Charles Bowsher said at a hearing of the Senate Governmental Affairs Committee. NUCLEAR WASTE (UPI) -- The Energy Department said Wednesday it has pushed back the projected opening of the nation's nuclear waste dump from 2003 to 2010 because of the legal obstacles and unresolved safety questions about the proposed site in Nevada. Because of the seven-year delay in building the permanent underground dump at Yucca Mountain, Nev., the department called for quick construction of a temporary waste storage facility -- a proposal sure to ignite controversy in Congress over where such a facility should be located. ### harri 1547na- i bc-gorbachev 205pes ld 11-29 0710 (complete write$hru thousands cheer, updating, changing byline) 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. upi 11-29-89 02:03 pes Bush Library Photocopy Preservation p0656 i AM-Gorbachev Bjt 11-29 0590 AM-Gorbacnev. Bjt.0664( 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. AP-TV-11-29-89 1512EST <+ Bush Library Photocopy Preservation p0310 W PM-Summit-Bush 1stLd-Writethru 11-29 0675 Summ Bush Ld-Writethru 0859< Bush aces Decision on Cutting Armed Forces Be one Gorbachey 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. TV-11-29-89 1133ESTK+ Bush Library Photocopy Preservation a0430 reute U i AM-SUMMIT-SOVIET 11-29 0428 AM-SUMMIT-SOVIET 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 Reut11:25 11-29 Bush Library Photocopy Preservation a0426reupp u 1 AM-EAST-SOVIET 11-29 0436 AM-EAST-SOVIET 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 COLLECTION: ACCESSION NUMBER: Bush Presidential Records 1993.0001 FOIA/SYSTEMATIC PROCESSING CASE Office of the President NUMBER (if app.): Transferred During Accessioning Transferred During Processing 2009-0166-S The following material was transferred to: Audiovisual Collection Book Collection Museum Collection Other 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: following. Telephone: Book Location: Map Case Location: Row: Section: Shelf: Position: Series: 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 Go to Database Go to Accession Go to Withdrawal Sheet Print Record Navigator Register 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/ * * * * * Enclosure * * * * * * *