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Originally Processed With FOIA(s): FOIA Number: 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: Speechwriting, White House Office of Series: Speech File Draft Files Subseries: Chron File, 1989-1993 OA/ID Number: 13479 Folder ID Number: 13479-012 Folder Title: Houston Forum, 3/16/89 [2] Stack: Row: Section: Shelf: Position: G 25 6 1 6 016168SS Document No. WHITE HOUSE STAFFING MEMORANDUM 3/13/89 3/14/89 10:00 AM DATE: ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: THE FORUM CLUB OF HOUSTON SUBJECT: ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER BREEDEN WINSTON CARD ROGERS CICCONI PINKERTON BOSKIN DEMAREST FITZWATER GRAY HAGIN REMARKS: Please forward any comments directly to Chriss Winston, Rm. 122, x2930, no later than 10:00 AM, Tuesday, March 14, 1989, with an info copy to my office. Thank you. Suggest a little more direct language on RESPONSE: budget - So that no one is the slightest hit unclear that he is advocating budget Smis James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 (McGroarty/Simon) March 13, 1989 12:00 noon PRESIDENTIAL REMARKS: 40 THE FORUM CLUB OF HOUSTON HOUSTON, TEXAS THURSDAY, MARCH 16, 1989 Thank you They say that Texas is a state of mind, but it's still good to set both feet down on Texas earth, to come home to Houston. INSERT ON BAKER & MOSBACHER. I take great pride in what is happening here. After difficult times, Houston has turned the corner. I've checked the statistics, and they're impressive: 250 new companies each month, 95,000 new jobs in the area in the past two years, and your unemployment rate is less than half what it was just three years ago. And best of all, the new Houston is being built upon a broad economic base. And I am especially pleased to be back at the Forum Club, which has contributed so much to public debate on the important issues of the day. ( (By the way, I came to Houston to share the good news with you because they've already heard it to Lubbock.) ) I've come home to Texas to tell you we're hard at work in Washington -- and we're making progress. We're working to drive down the deficit. We can bring federal spending under control -- and into balance with our resources. We can stay on track to meet the Gramm-Rudman target -- and we can do it with no new taxes. 2 The key is a realistic and workable budget, like the one I sent to Congress seven weeks ago -- the one that even the Congressional Budget Office now says will meet the Gramm-Rudman target. We're working to clean up insolvent savings and loans -- and to clean up the S&L system, so that the questionable practices and outright illegalities that caused the current crisis won't happen again. We're working now on a plan that will help developing nations cope with the burden of debt -- a solution that promotes growth and stability in world markets. And we're waging the war on drug-abuse on every front: more effective education and awareness efforts to dry up demand for illegal drugs, and tougher law enforcement and interdiction to cut off suppliers, and put the dealers behind bars -- where they belong. These are serious challenges -- ticking time bombs that we need to defuse without delay. And we're doing just that. But these are by no means the only issues that demand leadership and prompt action. Leadership is more that crisis-management. It's more than dealing with the problems of the day -- no matter how urgent they are. The true test of leadership is knowing where we want to take the country -- and taking the steps today to get us there. That's working for the long term, for a payoff we won't see today or tomorrow -- but ten and twenty years from now. 3 For people my age -- and for people a good deal younger -- the 21st Century has been the place we put all the fantastic ideas, all the discoveries and inventions we couldn't dream of experiencing in our own time. "The 21st Century" was just another name for a future that seemed as distant as a voyage to the moon. Here in Houston, you have a better sense of how we can cover that distance, and transform a distant future into our destiny. The truth is, the 21st Century isn't far away at all. I graduated in the Class of '42. Our first graders today will be the class of 2000. The 21st Century is here. The question is what we are doing today to prepare ourselves for the new world that begins eleven short years from now. That's what my agenda is all about. Building a better America means taking the the necessary steps today to build the foundations for the kind of future we want. Preparing for our future means investment -- in our economy and in our schools. It means safeguarding the environment against short-sighted actions that do long-term damage. It means finding ways to preserve and strengthen indispensable institutions like the family in the midst of social change. It means taking a long-range look at the international landscape, to determine what policies and approaches will keep us free, prosperous and at peace in the 21st Century, as we are today. 4 These aren't minor matters or unimportant issues. These are concerns that will determine what kind of world we live in -- and whether we as a people live up to our American ideals. And they're at the center of my agenda for a new American Century. To prepare for the future, we've got to invest in our economy: We've got to create incentives to new investment, and aggressive R&D programs that are catalysts to technological I've proposeded Congress advance. We've got to cut the capital gains tax, to spur the entrepreneurial activity that means new products, new industries and new jobs. Free enterprise is the engine of growth that can lead us into the next century. It's up to government to maintain a climate that is hospitable to growth, competitiveness and productive investment, one that gives free enterprise free rein. To prepare for the future, we've got to protect our I've proposed to Congress.- environment. Whether we're talking about the disposal of nuclear or other hazardous wastes, or the discharge of CFCs into our atmosphere, the United States -- on our own and in concert with other nations -- must make a clean environment a priority. And what I've done so far shows this isn't just talk -- I'm taking action. To prepare for the future, we've must got to focus on education. We've got to recognize and reward excellence in education -- in our schools, our teachers, our students. My merit proposals -- for teachers, schools, and our nation's best young science 5 scholars -- will reward the best, and encourage others follow their example. We can also strengthen our schools by introducing an element of competition into education. Magnet schools give parents and students the power to choose their schools, and that will serve as a powerful incentive for schools to improve their performance. To prepare for the future, we've got to cope with the changing nature of society. What are we doing in the age of the the single-parent and the two-career household to help the family survive and prosper? I've called on Congress to adopt a set of child care initiatives aimed at strengthening the American family -- especially low-income working households, where balancing the responsibilities of work and family proves most difficult. And, of course, to prepare for the future, we've got to map a national security strategy that gives due weight to each factor of change in international scene. That's the aim of the series of defense and foreign policy reviews I've instructed my national security team to conduct. American We have to understand that this is an agenda for the long-term. We aren't going to clean up the environment, turn around our education system, create a more responsive business climate or work environment in a single day. But we must begin today, and make steady progress -- in order to succeed. In this kind of work, more is going on than meets the eye -- or makes the headlines. The proof will come when we look back 6 from the year 2000. And I'm confident that we will be able to look back with pride on work we did to get ready for a new Century -- provided we look forward today. -- We can enter the 21st Century as a strong and trusted partner in the alliance of free nation, a front-line leader in defense of freedom. -- We can enter the 21st Century as a productive, energetic and innovative member of the global economy, second to none in the technological competition that will determine economic leadership in the decades ahead. -- We can enter the 21st Century as a nation whose people enjoy a degree of freedom, opportunity, and a quality of life that fulfills the American promise -- a society that draws its strength from the individual, the family, the community, and a government wise enough to respect those institutions as the cornerstone of our democratic system. We've got work to do -- work that won't wait -- great work to ensure that the next century now on the horizon will be a new American Century. Thank you. # # # V March 14, 1989 MEMORANDUM FOR JIM CICCONI D8 FROM; DENISE SCHWARZ OFFICE OF CABINET AFFAIRS SUBJECT; PRESIDENTIAL REMARKS; THE FORUM CLUB OF HOUSTON LOG #016168SS We have reviewed the attached and have no comments as of 10:30 a.m. today. Attachment CC: Chriss Winston Us 016168SS Document No. WHITE HOUSE STAFFING MEMORANDUM 3/13/89 3/14/89 10:00 AM DATE: ACTION/CONCURRENCE/COMMENT DUE BY: SUBJECT: PRESIDENTIAL REMARKS: THE FORUM CLUB OF HOUSTON ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER BREEDEN WINSTON CARD ROGERS CICCONI PINKERTON DEMAREST BOSKIN FITZWATER GRAY HAGIN REMARKS: Please forward any comments directly to Chriss Winston, Rm. 122, x2930, no later than 10:00 AM, Tuesday, March 14, 1989, with an info copy to my office. Thank you. RESPONSE: James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Evt 2702 (McGroarty/Simon) March 13, 1989 12:00 noon PRESIDENTIAL REMARKS: 40 THE FORUM CLUB OF HOUSTON HOUSTON, TEXAS THURSDAY, MARCH 16, 1989 Thank you They say that Texas is a state of mind, but it's still good to set both feet down on Texas earth, to come home to Houston. I take great pride in what is happening here. After difficult times, Houston has turned the corner. I've checked the statistics, and they're impressive: 250 new companies each month, 95,000 new jobs in the area in the past two years, and your unemployment rate is less than half what it was just three years ago. And best of all, the new Houston is being built upon a broad economic base. And I am especially pleased to be back at the Forum Club, which has contributed so much to public debate on the important issues of the day. ((By the way, I came to Houston to share the good news with you because they've already heard it to Lubbock.) ) I've come to Texas to tell you we're hard at work in Washington -- and we're making progress. We're working to drive down the deficit. We can bring federal spending under control -- and into balance with our resources. We can stay on track to meet the Gramm-Rudman target -- and we can do it with no new taxes. 2 The key is a realistic and workable budget, like the one I sent to Congress seven weeks ago -- the one that even the Congressional Budget Office now says will meet the Gramm-Rudman target. We're working to clean up insolvent savings and loans -- and to clean up the S&L system, so that the questionable practices and outright illegalities that caused the current crisis won't happen again. We're working now on a plan that will help developing nations cope with the burden of debt -- a solution that promotes growth and stability in world markets. And we're waging the war on drug-abuse on every front: more effective education and awareness efforts to dry up demand for illegal drugs, and tougher law enforcement and interdiction to cut off suppliers, and put the dealers behind bars -- where they belong. These are serious challenges -- ticking time bombs that we need to defuse without delay. And we're doing just that. But these are by no means the only issues that demand leadership and prompt action. Leadership is more that crisis-management. It's more than dealing with the problems of the day -- no matter how urgent they are. The true test of leadership is knowing where we want to take the country -- and taking the steps today to get us there. That's working for the long term, for a payoff we won't see today or tomorrow -- but ten and twenty years from now. 3 For people my age -- and for people a good deal younger -- the 21st Century has been the place we put all the fantastic ideas, all the discoveries and inventions we couldn't dream of experiencing in our own time. "The 21st Century" was just another name for a future that seemed as distant as a voyage to the moon. Here in Houston, you have a better sense of how we can cover that distance, and transform a distant future into our destiny. The truth is, the 21st Century isn't far away at all. I graduated in the Class of '42. Our first graders today will be the class of 2000. The 21st Century is here. The question is what we are doing today to prepare ourselves for the new world that begins eleven short years from now. That's what my agenda is all about. Building a better America means taking the the necessary steps today to build the foundations for the kind of future we want. Preparing for our future means investment -- in our economy and in our schools. It means safeguarding the environment against short-sighted actions that do long-term damage. It means finding ways to preserve and strengthen indispensable institutions like the family in the midst of social change. It means taking a long-range look at the international landscape, to determine what policies and approaches will keep us free, prosperous and at peace in the 21st Century, as we are today. 4 These aren't minor matters or unimportant issues. These are concerns that will determine what kind of world we live in -- and whether we as a people live up to our American ideals. And they're at the center of my agenda for a new American Century. To prepare for the future, we've got to invest in our economy: We've got to create incentives to new investment, and aggressive R&D programs that are catalysts to technological advance. We've got to cut the capital gains tax, to spur the entrepreneurial activity that means new products, new industries and new jobs. Free enterprise is the engine of growth that can lead us into the next century. It's up to government to maintain a climate that is hospitable to growth, competitiveness and productive investment, one that gives free enterprise free rein. To prepare for the future, we've got to protect our environment. Whether we're talking about the disposal of nuclear or other hazardous wastes, or the discharge of CFCs into our atmosphere, the United States -- on our own and in concert with other nations -- must make a clean environment a priority. And what I've done so far shows this isn't just talk -- I'm taking action. To prepare for the future, we've got to focus on education. We've got to recognize and reward excellence in education -- in our schools, our teachers, our students. My merit proposals -- for teachers, schools, and our nation's best young science 5 scholars -- will reward the best, and encourage others follow their example. We can also strengthen our schools by introducing an element of competition into education. Magnet schools give parents and students the power to choose their schools, and that will serve as a powerful incentive for schools to improve their performance. To prepare for the future, we've got to cope with the changing nature of society. What are we doing in the age of the the single-parent and the two-career household to help the family survive and prosper? I've called on Congress to adopt a set of child care initiatives aimed at strengthening the American family -- especially low-income working households, where balancing the responsibilities of work and family proves most difficult. And, of course, to prepare for the future, we've got to map a national security strategy that gives due weight to each factor of change in international scene. That's the aim of the series of defense and foreign policy reviews I've instructed my national security team to conduct. We have to understand that this is an agenda for the long-term. We aren't going to clean up the environment, turn around our education system, create a more responsive business climate or work environment in a single day. But we must begin today, and make steady progress -- in order to succeed. In this kind of work, more is going on than meets the eye -- or makes the headlines. The proof will come when we look back 6 from the year 2000. And I'm confident that we will be able to look back with pride on work we did to get ready for a new Century -- provided we look forward today. -- We can enter the 21st Century as a strong and trusted partner in the alliance of free nation, a front-line leader in defense of freedom. -- We can enter the 21st Century as a productive, energetic and innovative member of the global economy, second to none in the technological competition that will determine economic leadership in the decades ahead. -- We can enter the 21st Century as a nation whose people enjoy a degree of freedom, opportunity, and a quality of life that fulfills the American promise -- a society that draws its strength from the individual, the family, the community, and a government wise enough to respect those institutions as the cornerstone of our democratic system. We've got work to do -- work that won't wait -- great work to ensure that the next century now on the horizon will be a new American Century. Thank you. # # # 016168SS Document No. WHITE HOUSE STAFFING MEMORANDUM 3/13/89 3/14/89 10:00 AM DATE: ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: THE FORUM CLUB OF HOUSTON SUBJECT: ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER BREEDEN WINSTON CARD ROGERS CICCONI PINKERTON BOSKIN DEMAREST FITZWATER GRAY HAGIN REMARKS: Please forward any comments directly to Chriss Winston, Rm. 122, x2930, no later than 10:00 AM, Tuesday, March 14, 1989, with an info copy to my office. Thank you. RESPONSE: Too short and doing foals maer Spend James W. Cicconi 6" Andy Assistant to the President arlibe and Deputy to the Chief of Staff Ext. 2702 (McGroarty/Simon) March 13, 1989 12:00 noon PRESIDENTIAL REMARKS. 49 THE FORUM CLUB OF HOUSTON HOUSTON, TEXAS THURSDAY, MARCH 16, 1989 Thank you They say that Texas is a state of mind, but it's still good to set both feet down on Texas earth, to come home to Houston. I take great pride in what is happening here. After difficult times, Houston has turned the corner. I've checked the statistics, and they're impressive: 250 new companies each month, 95,000 new jobs in the area in the past two years, and your unemployment rate is less than half what it was just three years ago. And best of all, the new Houston is being built upon a broad economic base. And I am especially pleased to be back at the Forum Club, which has contributed so much to public debate on the important issues of the day. ((By the way, I came to Houston to share the good news with you because they've already heard it to Lubbock.) ) I've come to Texas to tell you we're hard at work in Washington -- and we're making progress. We're working to drive down the deficit. We can bring federal spending under control -- and into balance with our resources. We can stay on track to meet the Gramm-Rudman target -- and we can do it with no new taxes. 2 The key is a realistic and workable budget, like the one I sent to Congress seven weeks ago -- the one that even the Congressional Budget Office now says will meet the Gramm-Rudman target. We're working to clean up insolvent savings and loans -- and to clean up the S&L system, so that the questionable practices and outright illegalities that caused the current crisis won't happen again. We're working now on'a plan that will help developing nations cope with the burden of debt -- a solution that promotes growth and stability in world markets. And we're waging the war on drug-abuse on every front: more effective education and awareness efforts to dry up demand for illegal drugs, and tougher law enforcement and interdiction to cut off suppliers, and put the dealers behind bars -- where they belong. These are serious challenges -- ticking time bombs that we need to defuse without delay. And we're doing just that. But these are by no means the only issues that demand leadership and prompt action. Leadership is more that crisis-management. It's more than dealing with the problems of the day -- no matter how urgent they are. The true test of leadership is knowing where we want to take the country -- and taking the steps today to get us there. That's working for the long term, for a payoff we won't see today or tomorrow -- but ten and twenty years from now. 3 For people my age -- and for people a good deal younger -- the 21st Century has been the place we put all the fantastic ideas, all the discoveries and inventions we couldn't dream of experiencing in our own time. "The 21st Century" was just another name for a future that seemed as distant as a voyage to the moon. Here in Houston, you have a better sense of how we can cover that distance, and transform a distant future into our destiny. The truth is, the 21st Century isn't far away at all. I graduated in the Class of '42. Our first graders today will be the class of 2000. The 21st Century is here. The question is what we are doing today to prepare ourselves for the new world that begins eleven short years from now. That's what my agenda is all about. Building a better America means taking the the necessary steps today to build the foundations for the kind of future we want. Preparing for our future means investment -- in our economy and in our schools. It means safeguarding the environment against short-sighted actions that do long-term damage. It means finding ways to preserve and strengthen indispensable institutions like the family in the midst of social change. It means taking a long-range look at the international landscape, to determine what policies and approaches will keep us free, prosperous and at peace in the 21st Century, as we are today. 4 These aren't minor matters or unimportant issues. These are concerns that will determine what kind of world we live in -- and whether we as a people live up to our American ideals. And they're at the center of my agenda for a new American Century. To prepare for the future, we've got to invest in our economy: We've got to create incentives to new investment, and aggressive R&D programs that are catalysts to technological advance. We've got to cut the capital gains tax, to spur the entrepreneurial activity that means new products, new industries and new jobs. Free enterprise is the engine of growth that can lead us into the next century. It's up to government to maintain a climate that is hospitable to growth, competitiveness and productive investment, one that gives free enterprise free rein. To prepare for the future, we've got to protect our environment. Whether we're talking about the disposal of nuclear or other hazardous wastes, or the discharge of CFCs into our atmosphere, the United States -- on our own and in concert with other nations -- must make a clean environment a priority. And what I've done so far shows this isn't just talk -- I'm taking action. To prepare for the future, we've got to focus on education. We've got to recognize and reward excellence in education -- in our schools, our teachers, our students. My merit proposals -- for teachers, schools, and our nation's best young science 5 scholars -- will reward the best, and encourage others follow their example. We can also strengthen our schools by introducing an element of competition into education. Magnet schools give parents and students the power to choose their schools, and that will serve as a powerful incentive for schools to improve their performance. To prepare for the future, we've got to cope with the changing nature of society. What are we doing in the age of the the single-parent and the two-career household to help the family survive and prosper? I've called on Congress to adopt a set of child care initiatives aimed at strengthening the American family -- especially low-income working households, where balancing the responsibilities of work and family proves most difficult. And, of course, to prepare for the future, we've got to map a national security strategy that gives due weight to each factor of change in international scene. That's the aim of the series of defense and foreign policy reviews I've instructed my national security team to conduct. We have to understand that this is an agenda for the long-term. We aren't going to clean up the environment, turn around our education system, create a more responsive business climate or work environment in a single day. But we must begin today, and make steady progress -- in order to succeed. In this kind of work, more is going on than meets the eye -- or makes the headlines. The proof will come when we look back 6 from the year 2000. And I'm confident that we will be able to look back with pride on work we did to get ready for a new Century -- provided we look forward today. -- We can enter the 21st Century as a strong and trusted partner in the alliance of free nation, a front-line leader in defense of freedom. -- We can enter the 21st Century as a productive, energetic and innovative member of the global economy, second to none in the technological competition that will determine economic leadership in the decades ahead. -- We can enter the 21st Century as a nation whose people enjoy a degree of freedom, opportunity, and a quality of life that fulfills the American promise -- a society that draws its strength from the individual, the family, the community, and a government wise enough to respect those institutions as the cornerstone of our democratic system. We've got work to do -- work that won't wait -- great work to ensure that the next century now on the horizon will be a new American Century. Thank you. # # # 016168SS Document No. Action: P. Paylor WHITE HOUSE STAFFING MEMORANDUM 3/14/89 10:00 AM 3/13/89 DATE: ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: THE FORUM CLUB OF HOUSTON SUBJECT: ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER BREEDEN WINSTON CARD ROGERS PINKERTON CICCONI BOSKIN DEMAREST FITZWATER GRAY HAGIN REMARKS: Please forward any comments directly to Chriss Winston, Rm. 122, x2930, no later than 10:00 AM, Tuesday, March 14, 1989, with an info copy to my office. Thank you. RESPONSE: OK with changes on pgs, 1 and 2. James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 (McGroarty/Simon) March 13, 1989 12:00 noon PRESIDENTIAL REMARKS: 40 THE FORUM CLUB OF HOUSTON HOUSTON, TEXAS THURSDAY, MARCH 16, 1989 Thank you They say that Texas is a state of mind, but it's still good to set both feet down on Texas earth, to come home to Houston. I take great pride in what is happening here. After difficult times, Houston has turned the corner. I've checked the statistics, and they're impressive: 250 new companies each around 0 month, 95,000 new jobs in the area in the past two years, and your unemployment rate is less warly than half what it was just three two years ago. And best of all, the new Houston is being built upon a broad economic base. And I am especially pleased to be back at the Forum Club, which has contributed so much to public debate on the important issues of the day. ((By the way, I came to Houston to share the good news with you because they've already heard it to Lubbock. )) I've come to Texas to tell you we're hard at work in Washington -- and we're making progress. We're working to drive down the deficit. We can bring federal spending under control -- and into balance with our resources. We can stay on track to meet the Gramm-Rudman target -- and we can do it with no new taxes. 2 The key is a realistic and workable budget, like the one I sent to Congress seven weeks ago -- the one that even the be within the Congressional Budget Office now says will meet the Gramm-Rudman target. We're working to clean up insolvent savings and loans -- and to clean up the S&L system, so that the questionable practices and outright illegalities that caused the current crisis won't happen again. We're working now on a plan that will help developing nations cope with the burden of debt -- a solution that promotes growth and stability in world markets. And we're waging the war on drug-abuse on every front: more effective education and awareness efforts to dry up demand for illegal drugs, and tougher law enforcement and interdiction to cut off suppliers, and put the dealers behind bars -- where they belong. These are serious challenges -- ticking time bombs that we need to defuse without delay. And we're doing just that. But these are by no means the only issues that demand leadership and prompt action. Leadership is more that crisis-management. It's more than dealing with the problems of the day -- no matter how urgent they are. The true test of leadership is knowing where we want to take the country -- and taking the steps today to get us there. That's working for the long term, for a payoff we won't see today or tomorrow -- but ten and twenty years from now. 3 For people my age -- and for people a good deal younger -- the 21st Century has been the place we put all the fantastic ideas, all the discoveries and inventions we couldn't dream of experiencing in our own time. "The 21st Century" was just another name for a future that seemed as distant as a voyage to the moon. Here in Houston, you have a better sense of how we can cover that distance, and transform a distant future into our destiny. The truth is, the 21st Century isn't far away at all. I graduated in the Class of '42. Our first graders today will be the class of 2000. The 21st Century is here. The question is what we are doing today to prepare ourselves for the new world that begins eleven short years from now. That's what my agenda is all about. Building a better America means taking the the necessary steps today to build the foundations for the kind of future we want. Preparing for our future means investment -- in our economy and in our schools. It means safeguarding the environment against short-sighted actions that do long-term damage. It means finding ways to preserve and strengthen indispensable institutions like the family in the midst of social change. It means taking a long-range look at the international landscape, to determine what policies and approaches will keep us free, prosperous and at peace in the 21st Century, as we are today. 4 These aren't minor matters or unimportant issues. These are concerns that will determine what kind of world we live in -- and whether we as a people live up to our American ideals. And they're at the center of my agenda for a new American Century. To prepare for the future, we've got to invest in our economy: We've got to create incentives to new investment, and aggressive R&D programs that are catalysts to technological advance. We've got to cut the capital gains tax, to spur the entrepreneurial activity that means new products, new industries and new jobs. Free enterprise is the engine of growth that can lead us into the next century. It's up to government to maintain a climate that is hospitable to growth, competitiveness and productive investment, one that gives free enterprise free rein. To prepare for the future, we've got to protect our environment. Whether we're talking about the disposal of nuclear or other hazardous wastes, or the discharge of CFCs into our atmosphere, the United States -- on our own and in concert with other nations -- must make a clean environment a priority. And what I've done so far shows this isn't just talk -- I'm taking action. To prepare for the future, we've got to focus on education. We've got to recognize and reward excellence in education -- in our schools, our teachers, our students. My merit proposals -- for teachers, schools, and our nation's best young science 5 scholars -- will reward the best, and encourage others follow their example. We can also strengthen our schools by introducing an element of competition into education. Magnet schools give parents and students the power to choose their schools, and that will serve as a powerful incentive for schools to improve their performance. To prepare for the future, we've got to cope with the changing nature of society. What are we doing in the age of the the single-parent and the two-career household to help the family survive and prosper? I've called on Congress to adopt a set of child care initiatives aimed at strengthening the American family -- especially low-income working households, where balancing the responsibilities of work and family proves most difficult. And, of course, to prepare for the future, we've got to map a national security strategy that gives due weight to each factor of change in international scene. That's the aim of the series of defense and foreign policy reviews I've instructed my national security team to conduct. We have to understand that this is an agenda for the long-term. We aren't going to clean up the environment, turn around our education system, create a more responsive business climate or work environment in a single day. But we must begin today, and make steady progress -- in order to succeed. In this kind of work, more is going on than meets the eye -- or makes the headlines. The proof will come when we look back 6 from the year 2000. And I'm confident that we will be able to look back with pride on work we did to get ready for a new Century -- provided we look forward today. -- We can enter the 21st Century as a strong and trusted partner in the alliance of free nation, a front-line leader in defense of freedom. -- We can enter the 21st Century as a productive, energetic and innovative member of the global economy, second to none in the technological competition that will determine economic leadership in the decades ahead. -- We can enter the 21st Century as a nation whose people enjoy a degree of freedom, opportunity, and a quality of life that fulfills the American promise -- a society that draws its strength from the individual, the family, the community, and a government wise enough to respect those institutions as the cornerstone of our democratic system. We've got work to do -- work that won't wait -- great work to ensure that the next century now on the horizon will be a new American Century. Thank you. # # # THE WHITE HOUSE WASHINGTON March 13, 1989 MEMORANDUM FOR CHRISS A. WINSTON DEPUTY ASSISTANT TO THE PRESIDENT FOR COMMUNICATIONS FROM: MICHAEL J. ASTRUE MA ASSOCIATE COUNSEL TO THE PRESIDENT SUBJECT: Presidential Remarks: The Forum Club of Houston Counsel's office has reviewed the above-referenced proposed Presidential remarks, and we have no legal or other objections to their delivery. Thank you for submitting these remarks for our review. CC: James W. Cicconi 016168SS Document No. WHITE HOUSE STAFFING MEMORANDUM 3/13/89 3/14/89 10:00 AM DATE: ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: THE FORUM CLUB OF HOUSTON SUBJECT: ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER BREEDEN WINSTON CARD ROGERS CICCONI PINKERTON BOSKIN DEMAREST FITZWATER GRAY HAGIN REMARKS: Please forward any comments directly to Chriss Winston, Rm. 122, x2930, no later than 10:00 AM, Tuesday, March 14, 1989, with an info copy to my office. Thank you. RESPONSE: James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 (McGroarty/Simon) March 13, 1989 12:00 noon PRESIDENTIAL REMARKS: 40 THE FORUM CLUB OF HOUSTON HOUSTON, TEXAS THURSDAY, MARCH 16, 1989 Thank you They say that Texas is a state of mind, but it's still good to set both feet down on Texas earth, to come home to Houston. I take great pride in what is happening here. After difficult times, Houston has turned the corner. I've checked the statistics, and they're impressive: 250 new companies each waicher 5823 89 month, 95,000 new jobs in the area in the past two years, and your unemployment rate is less nearly than half what it was just three two years ago. And best of all, the new Houston is being built upon a broad economic base. And I am especially pleased to be back at the Forum Club, Holen which has contributed so much to public debate on the important 5178 issues of the day. ( (By the way, I came to Houston to share the ? good news with you because they've already heard it to (Lubbock. )) I've come to Texas to tell you we're hard at work in Washington -- and we're making progress. We're working to drive down the deficit. We can bring federal spending under control -- and into balance with our resources. We can stay on track to meet the Gramm-Rudman target -- and we can do it with no new taxes. class 2 3080 The key is a realistic and workable budget, like the one I non-partisan Wricher sent to Congress seven weeks ago -- the one that even^ the 5873 bein range of the Congressional Budget Office now says will meet theAGramm-Rudman- Hollings 1 don't think this Grady Dale target is accurate 4844 Ander deal with 3080 We're working to clean up insolvent savings and loans -- and to clean up the S&L system, so that the questionable practices and outright illegalities that caused the current crisis won't happen again. We're working now on a plan that will help developing nations cope with the burden of debt -- a solution that promotes growth and stability in world markets. And we're waging the war on drug-abuse on every front: more Clay effective education and awareness efforts to dry up demand for 3080 illegal drugs, and tougher law enforcement and interdiction to HOLER cut off suppliers and Putting? put the dealers behind bars -- where they 5178 belong. These are serious challenges -- ticking time bombs that we need to defuse without delay. And we're doing just that. But these are by no means the only issues that demand leadership and prompt action. Leadership is more that crisis-management. It's more than dealing with the problems of the day -- no matter how urgent they are. this Cleery 3080 The true test of leadership is knowing where we want to take the country and taking the steps today to get us us there. Should be going mygoal isto means That working for the long term, for a payoff we won't see today or tomorrow but ten and twenty years from now. with an Eyr on the future, 3 those For people my age -- and for people a good deal younger that was where the 21st Century has been the place wen put all the fantastic would realize They 3080 ideas, all the discoveries and inventions we couldn't dream of experiencing in our own time. "The 21st Century" was just another name for a future that seemed as distant as a voyage to the moon. Here in Houston, you have a better sense of how we can cover that distance, and transform a distant future into our destiny. 3080 Clay we now stand at the thre Shold of that new century. Daliso The truth is, the 21st Century isn't far away at all. I from high school graduated in the Class of '42. Our first graders today will be the class of 2000. nearly upon us, a we are faced wian Essential The 21st Century is here. The question: is what we arendoing WE all WL can today to prepare ourselves for the new world that begins eleven short years from now. That's what my agenda is all about. Building a better America means taking the the necessary steps today to 1 ayrung build the foundations/ today for the kind of future we all want. Dale 3080 Preparing for our future means investment -- in our economy children and in our schools. It means safeguarding the environment against short-sighted actions that do long-term damage. It means finding ways to preserve and strengthen indispensable institutions like the family in the midst of social change. It means taking a long-range look at the international landscape, to determine what policies and approaches will keep us free, prosperous and at peace in the 21st Century, as we are today. 4 These aren't minor matters or unimportant issues. These are concerns that will determine what kind of world we live in -- and whether we as a people live up to our American ideals. And they're at the center of my agenda for a new American Century. need To prepare for the future, we ve got to invest in our Cleur 3080 far economy: We've got to create incentives to new investment, and aggressive R&D programs that are catalysts to technological advance. We've got to cut the capital gains tax, to spur the entrepreneurial activity that means new products, new industries will and new jobs. Free enterprise is the engine of growth that can lead us into the next century. It's up to government to maintain a climate that is hospitable to growth, competitiveness and productive investment, one that gives free enterprise free rein. To prepare for the future, we've got to protect our environment. Whether we're talking about the disposal of nuclear or other hazardous wastes, or the discharge of CFCs into our atmosphere, the United States -- on our own and in concert with top other nations -- must make a clean environment a¹ priority. And Clay 3080 what I've done so far shows this isn't just talk -- I'm taking action. Starts with Educe To prepare for the future we ve got to focus on education Encouraging. We ve got to recognize and reward ing excellence in education -- in Clay and 3088 our schools, our teachers, our students. My merit proposals -- for teachers, schools, and our nation's best young science 5 to scholars -- will reward the best, and encourage others^ follow their example. We can also strengthen our schools by introducing an element of competition into education. Magnet schools give Dale 3080 more norechokein Chokein parents and students the power to choose their schools, and that will serve as a powerful incentive for schools to improve their performance. ing also Means confronting To prepare for the future, we've got to cope with the our changing nature of society. What are we doing in the age of the the single-parent and the two-career household to help the family survive and prosper? I've called on Congress to adopt a set of child care initiatives aimed at strengthening the American family -- especially low-income working households, where balancing the responsibilities of work and family proves most difficult. But, all these initiatives would be meaningless And, of course, to prepare for the future, we've got to map without, ^ a national security strategy that/gives due weight to each factor Ensures our freedon, and 3088 Clay Holen the of change in international scene. That's the aim of the series SLIG of defense and foreign policy reviews I've instructed my national security team to conduct. Clay We have to understand that this is an agenda for the 3080 long-term. We aren't going to clean up the environment, turn around around our education system, create a more responsive business Clay 3080 climate or work environment in a single day. But we must begin wewill today, and make steady progress in order ton succeed. In this kind of work, more is going on than meets the eye -- or makes the headlines. The proof will come when we look back 6 from the year 2000. And I'm confident that we will be able to look back with pride on work we did to get ready for a new Century -- provided we look forward today. -- We can enter the 21st Century as a strong and trusted partner in the alliance of free nation, a front-line leader in the defense of freedom. -- We can enter the 21st Century as a productive, energetic and innovative member of the global economy, second to none in the technological competition that will determine economic leadership in the decades ahead. -- We can enter the 21st Century as a nation whose people enjoy clay 3080 a degree of freedom, opportunity, and a quality of life that fulfills the American promise -- a society that draws its strength from the individual, the family, the community, and a government wise enough to respect those institutions as the cornerstone of our democratic system. We've got work to do -- work that won't wait -- great work to ensure that the next century now on the horizon will be a new American Century. Thank you. # # # THE WHITE HOUSE WASHINGTON March 14, 1989 Memorandum for Chriss Winston From: RBP/SP Roger B. Porter Jim Pinkerton Re: Comments on Forum Club of Houston Draft This draft sets an upbeat, forward-looking tone. We particularly liked the "we can " "we're working now = "we're waging the war can-do motif. We ought to continue this central theme of long-term, long-range Presidential leadership. In fact, one main suggestion would be to move this central theme up to an earlier point in the speech. On page two, paragraph six, "Leadership is more than crisis management, " etc., should be inserted in page one, after paragraph four, "I've come to Texas to tell you we're hard at work in Washington -- and we're making progress." We should highlight good economic news. We should not unduly emphasize the month-to-month changes, even when the data are positive (i.e. 5.1% unemployment). Rather, we should lay heavier stress on favorable long term economic trends (i.e. 20 million new jobs). We agree that recitations of economic statistics can be tedious. However, if we don't trumpet good news, nobody else will! We need to strike a balance; we should remind Americans of the remarkable successes our policies. Finally, we felt there should be more references to the President as a Houstonian. Certainly the people in Houston consider him so. p.1 para.3 " they've already heard it to Lubbock" should be "they' 've already heard it in Lubbock." p.2, para. We'd add "Building a Better America" here. Thus: "The key to Building a Better America is a realistic and workable budget." Also, we should delete the references to the Congressional Budget Office. The CBO does not think that we can meet the G.R.H. target of $100 billion. Rather, they say we can come within the 10% "grace zone" and avoid a sequester if our technical assumptions on the S&L bailout are accepted. This is too complicated for a speech! -2- p.2, para. 6 We'd omit the first sentence: "But these are by no means the only issues that demand leadership and prompt action.' And then move the next few paragraphs dealing with long range leadership up to page one, after paragraph four, as mentioned above. Also, in the second sentence of this paragraph "that" should be "than." p.3, para. 2 "Here in Houston, you have a better sense of how we can cover that distance " As mentioned, we should emphasize the Bush-Houston connection. Thus "you" in this sentence should be "we." p.4,para.3 "And they're at the center of my agenda for a new American Century." We should remember that Henry Luce argued that the 20th century was the American Century. The sentence should read = center of my agenda for a Second American Century." p.6, para. 2 "We can enter the 21st Century as a strong and trusted partner in the alliance of free nation, a front line leader in defense of freedom." Change "nation" to the plural: "nations." # 2 We're working to drive down the deficit. We can bring federal spending under control -- and into balance with our resources. We can stay on track to meet the Gramm-Rudman target -- and we can do it with no new taxes. The key to building a better America is a realistic and workable budget, like the one I sent to Congress seven weeks ago. We're working now on a plan that will help developing nations cope with the burden of debt -- a solution that promotes growth and stability in world markets. We're waging a war on drug-abuse on every front: more effective education and awareness efforts to dry up demand for illegal drugs, and tougher law enforcement and interdiction to cut off suppliers, and put the dealers behind bars -- where they belong. We're working to establish a six-month training wage, as part of a package raising the minimum wage to $4.25 an hour. $4.25 is my first -- and last ---- offer. Anything higher will actually cost us jobs, by raising costs to many employers. A training wage does just the opposite -- providing those now jobless -- especially or youth and minorities -- a hand-hold on the economic ladder, and a means of moving up. And we're working hard on a serious problem all Texans are aware of -- the threat to our financial system posed by insolvent savings and loans. Less than three weeks after taking office, I announced a comprehensive set of proposals to take effective action on this problem. We must clean up the S&L system, so that new text - we'd like to review quickly hitches for any policy Thanks! & Larry Lindsey OPD OR for Porter 3 the questionable practices and outright illegalities that caused the current crisis won't happen again. Nationwide, insolvent S&Ls still in operation incur check operating losses at a rate of more than $333 million a month -- a Texas sized half that's about $3 million dollars during the course of this luncheon. Three weeks ago, I sent the Congress a bill that will check enable us to take action to halt the dollar drain, and move forward on stabilizing our S&L system. It's a sound and comprehensive plan. I want to see that bill -- with its central provisions intact -- arrive on my desk by May 1. There's no excuse for further delay. Once the legislation is enacted, we must turn our attention to careful and responsible handling of the assets of failed filed S&Ls -- and to the complete protection of their depositors. Our solution must ensure the least possible disruption to local markets -- at the same time it keeps costs to a minimum. And let me say clearly: we must see to it that those S&L officials guilty of criminal actions are pursued and punished for the losses they have caused. These are serious challenges -- ticking time bombs that we need to defuse without delay. And we're doing just that. But these are by no means the only issues that demand leadership and prompt action. Leadership is more than crisis-management. It's more than dealing with the problems of the day -- no matter how urgent they are. 016168SS Document No. WHITE HOUSE STAFFING MEMORANDUM 3/14/89 10:00 AM 3/13/89 DATE: ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS:- THE FORUM CLUB OF HOUSTON SUBJECT: ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER BREEDEN WINSTON CARD ROGERS PINKERTON CICCONI BOSKIN DEMAREST FITZWATER GRAY HAGIN REMARKS: Please forward any comments directly to Chriss Winston, Rm. 122, x2930, no later than 10:00 AM, Tuesday, March 14, 1989, with an info copy to my office. Thank you. Oleany RESPONSE: Gorden Which James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 FORUM CLUB OF HOUSTON HOUSTON, TEXAS THURSDAY, MARCH 16, 1989 ((THANK YOU, DICK FOR THAT INTRODUCTION, AND I MUST THANK YOU AND DICK JOHNSON FOR PUTTING THIS "LITTLE" LUNCH TOGETHER.)) THEY SAY THAT TEXAS IS A STATE OF MIND, BUT IT'S STILL GOOD TO SET BOTH FEET DOWN ON TEXAS EARTH, TO COME HOME TO HOUSTON. 2 I AM PLEASED TO BE BACK AT THE FORUM CLUB, WHICH HAS CONTRIBUTED SO MUCH TO PUBLIC DEBATE ON THE IMPORTANT ISSUES OF THE DAY. I'M GLAD THAT BoB MOSBACHER IS WITH ME -- A PAST PRESIDENT OF THE FORUM CLUB, NOW HANDLING THE TOUGH ASSIGNMENT AT COMMERCE -- AND NOT SURPRISINGLY, DOING A SUPERB JOB. I TAKE GREAT PRIDE IN WHAT IS HAPPENING HERE. AFTER DIFFICULT TIMES, HOUSTON HAS TURNED THE CORNER. 3 I'VE CHECKED THE STATISTICS, AND THEY'RE IMPRESSIVE: 280 NEW COMPANIES LAST MONTH, NEARLY 90,000 NEW JOBS IN THE AREA IN THE PAST TWO YEARS, AND YOUR UNEMPLOYMENT RATE IS ALMOST HALF WHAT IT WAS JUST TWO YEARS AGO. AND BEST OF ALL, THE NEW HOUSTON IS BEING BUILT UPON A BROAD ECONOMIC BASE. I'VE COME HOME TO TEXAS TO TELL YOU WE'RE HARD AT WORK IN WASHINGTON -- AND WE'RE MAKING PROGRESS. ((By THE WAY, I CAME TO HOUSTON TO SHARE THE GOOD NEWS WITH YOU BECAUSE THEY'VE ALREADY HEARD IT IN LUBBOCK.)) 4 WE'RE WORKING TO DRIVE DOWN THE DEFICIT. WE CAN BRING FEDERAL SPENDING UNDER CONTROL -- AND INTO BALANCE WITH OUR RESOURCES. UNDER OUR BUDGET, WE'LL HAVE $80 BILLION DOLLARS IN NEW REVENUE FOR 1990. WE CAN STAY ON TRACK TO MEET THE GRAMM-RUDMAN TARGET -- AND WE CAN DO IT WITH NO NEW TAXES. THE KEY TO BUILDING A BETTER AMERICA IS A REALISTIC AND WORKABLE BUDGET, LIKE THE ONE I SENT TO CONGRESS FIVE WEEKS AGO. 5 WE'RE WORKING NOW ON A PLAN THAT WILL HELP DEVELOPING NATIONS COPE WITH THE BURDEN OF DEBT -- A SOLUTION THAT PROMOTES GROWTH AND STABILITY IN WORLD MARKETS. WE'RE WAGING A WAR ON DRUG-ABUSE ON EVERY FRONT: MORE EFFECTIVE EDUCATION AND AWARENESS EFFORTS TO DRY UP DEMAND FOR ILLEGAL DRUGS, AND TOUGHER LAW ENFORCEMENT AND INTERDICTION TO CUT OFF SUPPLIERS, AND PUT THE DEALERS BEHIND BARS -- WHERE THEY BELONG. 6 WE'RE WORKING TO ESTABLISH A SIX-MONTH TRAINING WAGE, AS PART OF A PACKAGE RAISING THE MINIMUM WAGE FROM $3.35 TO $4.25 AN HOUR. $4.25 IS MY FIRST -- AND LAST -- OFFER. ANYTHING HIGHER WILL ACTUALLY COST US JOBS, BY RAISING COSTS FOR MANY EMPLOYERS, AND WILL HAVE AN ADVERSE AFFECT ON INFLATION AND PRODUCTIVITY. A TRAINING WAGE DOES JUST THE OPPOSITE -- PROVIDING THOSE NOW JOBLESS --\ ESPECIALLY FOR YOUTH AND MINORITIES -- A HAND-HOLD ON THE ECONOMIC LADDER, A MEANS OF MOVING UP. 7 AND WE'RE WORKING HARD ON A SERIOUS PROBLEM ALL TEXANS ARE AWARE OF -- THE THREAT TO OUR FINANCIAL SYSTEM POSED BY INSOLVENT SAVINGS AND LOANS. LESS THAN THREE WEEKS AFTER TAKING OFFICE, I ANNOUNCED A COMPREHENSIVE SET OF PROPOSALS TO TAKE EFFECTIVE ACTION ON THIS PROBLEM. WE MUST CLEAN UP THE S&L SYSTEM, so THAT THE QUESTIONABLE PRACTICES AND OUTRIGHT ILLEGALITIES THAT CAUSED THE CURRENT CRISIS WON'T HAPPEN AGAIN. 8 NATIONWIDE, INSOLVENT S&Ls STILL IN OPERATION ARE INCURRING OPERATING LOSSES AT A RATE OF ABOUT $300 MILLION DOLLARS A MONTH. = THAT'S ALMOST $1 MILLION DOLLARS DURING THE COURSE OF THIS LUNCHEON. THREE WEEKS AGO, I SENT THE CONGRESS A BILL THAT WILL ENABLE US TO TAKE ACTION TO HALT THE DOLLAR DRAIN, AND MOVE FORWARD ON STABILIZING OUR S&L SYSTEM. IT'S A SOUND AND COMPREHENSIVE PLAN -- AND IT HAS BEEN WELL RECEIVED. I WANT TO SEE THAT BILL PASSED WITH ITS CENTRAL PROVISIONS INTACT. THERE'S NO EXCUSE FOR FURTHER DELAY. 9 ONCE THE LEGISLATION IS ENACTED, WE MUST TURN OUR ATTENTION TO CAREFUL AND RESPONSIBLE HANDLING OF THE ASSETS OF FAILED S&Ls. LET ME BE CLEAR ON A KEY POINT: INSURED DEPOSITORS ARE NOT AT RISK. THEY ARE FULLY PROTECTED, AND WILL CONTINUE TO BE FULLY PROTECTED. OUR SOLUTION MUST ENSURE THE LEAST POSSIBLE DISRUPTION TO LOCAL MARKETS -- AND AT THE SAME TIME KEEP COSTS TO A MINIMUM. AND LET ME SAY CLEARLY: WE MUST SEE TO IT THAT THOSE S&L OFFICIALS GUILTY OF CRIMINAL ACTIONS ARE PURSUED AND PUNISHED FOR THE LOSSES THEY HAVE CAUSED. 10 THESE ARE SERIOUS CHALLENGES -- TICKING TIME BOMBS THAT WE NEED TO DEFUSE WITHOUT DELAY. AND WE'RE DOING JUST THAT. BUT THESE ARE BY NO MEANS THE ONLY ISSUES THAT DEMAND LEADERSHIP AND PROMPT ACTION. WE'RE ENTERING THE 1990s -- A HORIZON DECADE -- THRESHOLD TO A NEW CENTURY. 11 FOR PEOPLE MY AGE -- AND FOR PEOPLE A GOOD DEAL YOUNGER -- THE 21st CENTURY HAS BEEN THE PLACE IN OUR MINDS THAT WE PUT ALL THE FANTASTIC IDEAS, ALL THE DISCOVERIES AND INVENTIONS WE COULDN'T DREAM OF EXPERIENCING IN OUR OWN TIME. "THE 21st CENTURY" WAS JUST ANOTHER NAME FOR A FUTURE THAT SEEMED AS DISTANT AS A VOYAGE TO THE MOON. HERE IN HOUSTON, WE HAVE A BETTER SENSE OF HOW WE CAN COVER THAT DISTANCE, AND TRANSFORM A DISTANT FUTURE INTO OUR DESTINY. 12 THE TRUTH IS, THE 21st CENTURY ISN'T FAR AWAY AT ALL. I GRADUATED FROM HIGH SCHOOL IN THE CLASS OF '42. OUR FIRST GRADERS TODAY WILL BE THE CLASS OF 2000. THE 21st CENTURY IS HERE -- IN OUR CHILDREN. THE ESSENTIAL QUESTION TODAY IS: WHAT ARE WE DOING TO PREPARE FOR THE NEW WORLD THAT BEGINS ELEVEN SHORT YEARS FROM NOW? THAT'S WHAT MY AGENDA IS ALL ABOUT. BUILDING A BETTER AMERICA MEANS LAYING THE FOUNDATIONS TODAY FOR THE KIND OF FUTURE WE WANT. 13 PREPARING FOR OUR FUTURE MEANS INVESTMENT -- IN OUR ECONOMY AND IN OUR SCHOOLS. IT MEANS SAFEGUARDING THE ENVIRONMENT AGAINST SHORT-SIGHTED ACTIONS THAT DO LONG-TERM DAMAGE. IT MEANS FINDING WAYS TO PRESERVE AND STRENGTHEN INDISPENSABLE INSTITUTIONS LIKE THE FAMILY IN THE MIDST OF SOCIAL CHANGE. IT MEANS TAKING A LONG-RANGE LOOK AT THE INTERNATIONAL LANDSCAPE, TO DETERMINE WHAT POLICIES AND APPROACHES WILL KEEP US FREE, PROSPEROUS AND AT PEACE IN THE 21st CENTURY, AS WE ARE TODAY. 14 AND SPEAKING OF FREEDOM, IT MEANS FORMULATING A MULTI-SOURCE ENERGY POLICY THAT, IN THE LONG RUN, WILL MAKE US LESS DEPENDENT ON FOREIGN OIL THESE AREN'T MINOR MATTERS OR UNIMPORTANT ISSUES. THESE ARE CONCERNS THAT WILL DETERMINE WHAT KIND OF WORLD WE LIVE IN -- AND WHETHER WE AS A PEOPLE LIVE UP TO OUR AMERICAN IDEALS. AND THEY'RE AT THE CENTER OF MY AGENDA FOR A NEW AMERICAN CENTURY. 15 To PREPARE FOR THE FUTURE, WE'VE GOT TO INVEST IN OUR ECONOMY: WE'VE GOT TO CREATE INCENTIVES FOR NEW INVESTMENT, AND AGGRESSIVE R&D PROGRAMS THAT ARE CATALYSTS TO TECHNOLOGICAL ADVANCE. I'VE CALLED FOR A PERMANENT R & E -- RESEARCH AND EXPERIMENTATION -- TAX CREDIT TO CREATE THAT INCENTIVE AND A 13% INCREASE IN FEDERALLY FUNDED SCIENCE RESEARCH. 16 WE'VE GOT TO CUT THE CAPITAL GAINS TAX -- AND I'VE ASKED THE CONGRESS TO JOIN WITH ME ON THIS -- TO SPUR THE ENTREPRENEURIAL ACTIVITY THAT MEANS NEW PRODUCTS, NEW INDUSTRIES AND NEW JOBS. FREE ENTERPRISE IS THE ENGINE OF GROWTH THAT CAN LEAD US INTO THE NEXT CENTURY. IT'S UP TO GOVERNMENT TO MAINTAIN A CLIMATE THAT IS HOSPITABLE TO GROWTH, COMPETITIVENESS AND PRODUCTIVE INVESTMENT, ONE THAT GIVES FREE ENTERPRISE FREE REIN. 17 AND BY THE WAY, MY PROPOSAL ON RESTORING THE CAPITAL GAINS TAX DIFFERENTIAL WILL ADD $4.8 BILLION DOLLARS IN NEW REVENUES TO THE TREASURY IN 1990 ALONE. To PREPARE FOR THE FUTURE, WE'VE GOT TO PROTECT OUR ENVIRONMENT. WHETHER WE'RE TALKING ABOUT THE DISPOSAL OF NUCLEAR OR OTHER HAZARDOUS WASTES, OR THE DISCHARGE OF CFCs INTO OUR ATMOSPHERE, THE UNITED STATES -- ON OUR OWN AND IN CONCERT WITH OTHER NATIONS -- MUST MAKE A CLEAN ENVIRONMENT A TOP PRIORITY. AND WHAT I'VE DONE so FAR SHOWS THIS ISN'T JUST TALK -- I'M TAKING ACTION. 18 To PREPARE FOR THE FUTURE, WE MUST ENCOURAGE AND IMPROVE EDUCATION. WE MUST RECOGNIZE AND REWARD EXCELLENCE IN EDUCATION -- IN OUR SCHOOLS, OUR TEACHERS, OUR STUDENTS. Mr MERIT PROPOSALS -- FOR TEACHERS, SCHOOLS, AND OUR NATION'S BEST YOUNG SCIENCE SCHOLARS -- WILL REWARD THE BEST, AND ENCOURAGE OTHERS TO FOLLOW THEIR EXAMPLE. OUR NATIONAL SCIENCE SCHOLARSHIPS ALONE WILL PROVIDE 570 TOP STUDENTS UP TO $10,000 A YEAR TO ATTEND THE COLLEGE OF THEIR CHOICE. 19 WE CAN ALSO STRENGTHEN OUR SCHOOLS BY INTRODUCING AN ELEMENT OF COMPETITION INTO EDUCATION. MAGNET SCHOOLS GIVE PARENTS AND STUDENTS THE POWER TO CHOOSE THEIR SCHOOLS, AND THAT WILL SERVE AS A POWERFUL INCENTIVE FOR SCHOOLS TO IMPROVE THEIR PERFORMANCE. THAT'S WHY I'VE URGED CONGRESS TO PROVIDE $100 MILLION TO HELP WITH THE START-UP COSTS FOR NEW MAGNET SCHOOLS. PREPARING FOR THE FUTURE MEANS CONFRONTING THE CHANGING NATURE OF OUR SOCIETY. 20 WHAT ARE WE DOING IN THE AGE OF THE SINGLE-PARENT AND THE TWO-CAREER HOUSEHOLD TO HELP THE FAMILY SURVIVE AND PROSPER? I'VE CALLED ON CONGRESS TO ADOPT A SET OF CHILD CARE INITIATIVES AIMED AT STRENGTHENING THE AMERICAN FAMILY -- AND GIVING PARENTS A CHOICE. I DON'T WANT FEDERAL REGULATORS TO PUSH CHURCHES AND PRIVATE GROUPS OUT OF THE CHILD CARE BUSINESS. 21 OUR 1990 BUDGET REQUESTS A 20% INCREASE IN FUNDING FOR OUR SUCCESSFUL HEAD START PROGRAM, AND INSTITUTES THIS NEW CHILD CARE TAX CREDIT FOR LOW-INCOME HOUSEHOLDS, TO MAKE BALANCING THE RESPONSIBILITIES OF WORK AND FAMILY LESS DIFFICULT. AND, OF COURSE, TO PREPARE FOR THE FUTURE, WE'VE GOT TO MAP A NATIONAL SECURITY STRATEGY THAT ENSURES OUR FREEDOM, AND GIVES DUE WEIGHT TO EACH FACTOR OF CHANGE IN THE INTERNATIONAL SCENE. 22 THAT'S THE AIM OF THE SERIES OF DEFENSE AND FOREIGN POLICY REVIEWS I'VE INSTRUCTED MY NATIONAL SECURITY TEAM TO CONDUCT. THIS IS AN AMERICAN AGENDA FOR THE LONG-TERM. WE AREN'T GOING TO CLEAN UP THE ENVIRONMENT, TURN OUR EDUCATION SYSTEM AROUND, OR CREATE A MORE RESPONSIVE BUSINESS CLIMATE IN A SINGLE DAY. BUT IF WE BEGIN TODAY, AND MAKE STEADY PROGRESS, WE WILL SUCCEED. IN THIS KIND OF WORK, MORE IS GOING ON THAN MEETS THE EYE -- OR MAKES THE HEADLINES. 23 THE PROOF WILL COME WHEN WE LOOK BACK FROM THE YEAR 2000. AND I'M CONFIDENT THAT WE WILL BE ABLE TO LOOK BACK WITH PRIDE ON WORK WE DID TO GET READY FOR A NEW CENTURY -- PROVIDED WE LOOK FORWARD TODAY. -- WE MUST ENTER THE 21st CENTURY AS A STRONG AND TRUSTED PARTNER IN THE ALLIANCE OF FREE NATIONS, A FRONT-LINE LEADER IN DEFENSE OF FREEDOM. 24 : WE MUST ENTER THE 21st CENTURY AS A PRODUCTIVE, ENERGETIC AND INNOVATIVE MEMBER OF THE GLOBAL ECONOMY, SECOND TO NONE IN THE TECHNOLOGICAL COMPETITION THAT WILL DETERMINE ECONOMIC LEADERSHIP IN THE DECADES AHEAD. -- WE MUST ENTER THE 21st CENTURY AS A NATION WHOSE PEOPLE ENJOY FREEDOM, OPPORTUNITY, AND A QUALITY OF LIFE THAT FULFILLS THE AMERICAN PROMISE -- A SOCIETY THAT DRAWS ITS STRENGTH FROM THE INDIVIDUAL, THE FAMILY, THE COMMUNITY, AND A GOVERNMENT WISE ENOUGH TO RESPECT THOSE INSTITUTIONS AS THE CORNERSTONE OF OUR DEMOCRATIC SYSTEM. 25 WE'VE GOT WORK TO DO -- WORK THAT WON'T WAIT -- GREAT WORK TO ENSURE THAT THE NEXT CENTURY NOW ON THE HORIZON WILL BE A NEW AMERICAN CENTURY. THANK YOU VERY MUCH. ((AND NOW, UNLESS THAT WAS ALL PERFECTLY CLEAR TO ALL OF YOU, I'LL TAKE SOME QUESTIONS.)) ###