Ask the Scholar

Document scope · 1 page
doc
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory. For page-specific OCR and visual context, open one of the page chats.

Scholar Source Context

Document identity
localId
323150460
label
Talking Points--FSX Grant, 5/8/89
core
doc
dtoType
document
pageCount
1
Source metadata
Source extras
naId
323150460
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
096e30425e41aab7
ocrText
Originally Processed With FOIA(s): FOIA Number: S 2011-2184-F 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: 13486 Folder ID Number: 13486-004 Folder Title: Talking Points--FSX Grant, 5/8/89 Stack: Row: Section: Shelf: Position: G 26 15 7 2 May 8, 1989 TALKING POINTS ON THE FSX AGREEMENT On May 1, President Bush sent notification to Congress of his support for the FSX agreement, with clarifications of the original Memorandum of Understanding which was signed in November of 1988. These clarifications related to workshare and the transfer of technology. The final agreement was reached after thorough and intense interagency review, and the President is satisfied that the agreement in every respect meets our requirements and will serve the national interest. It will contribute significantly to strengthening our mutual defense posture in East Asia. THE AGREEMENT ITSELF: Under the FSX agreement, Japan will fund the entire project; no U.S. taxpayer money will be spent. American companies will share approximately 40 percent of the development work, estimated to be approximately $480 million, and a similar share of the production phase, estimated to be approximately $2 billion. -- The total of $2.5 billion for the entire program is approximately the same as General Dynamics would have received if Japan had bought the F-16 aircraft directly. -- The agreement is intended to result in an estimated 22,700 man-years of jobs for American workers. TECHNOLOGY TRANSFER: Sensitive U.S. technology is fully protected under the FSX agreement. It cannot be diverted to other uses without express U.S. consent. Moreover, the technology is not being given away: -- Japan will pay an R&D recoupment charge for the baseline F-16 technology, thereby lowering the investment costs of our own F-16 program. -- Japan will also pay a royalty charge for every FSX produced. The U.S. will have access to all technology related to the FSX -- at no charge for technology derived from American- origin technology, and a guaranteed right to purchase all technology which Japan brings to the project or which is derived from such technology. Certain state-of-the-art technologies from the most recent models of the F-16 will not be transferred. CONCLUSION: FSX is a new concept. It was conceived to assure that the future development of Japanese military aircraft will be carried out in cooperation with the United States and that American industry will participate fully. # # # Document No. 033362SS WHITE HOUSE STAFFING MEMORANDUM 5/4/89 5/5/89 4:00 PM DATE: ACTION/CONCURRENCE/COMMENT DUE BY: TALKING POINTS ON THE FSX AGREEMENT SUBJECT: ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER BREEDEN ROGERS CARD WINSTON CICCONI PINKERTON N/C DEMAREST FITZWATER GRAY HAGIN REMARKS: Please forward any comments directly to Chriss Winston, Rm. 122, x2930, no later than 4:00 PM, Friday, May 5, 1989, with an info copy to my office. Thank you. RESPONSE: 684-5327 James W, Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 ( (Grant)) May 4, 1989 22: TALKING POINTS ON THE FSX AGREEMENT On May 1, President Bush sent notification to Congress of his support for the FSX agreement, with clarifications of the original Memorandum of Understanding which was signed in November of 1988. These clarifications related to workshare and the transfer of technology. O The final agreement was reached after thorough and intense interagency review, and the President is satisfied that the agreement in every respect meets our requirements and will serve the national interest. It will contribute significantly to strengthening our mutual defense posture in East Asia. THE AGREEMENT ITSELF: O Under the FSX agreement, Japan will fund the entire project; no U.S. taxpayer money will be spent. American companies share APPROXIMATELY WORK will receive a 40% share of the development estimated to be M Check similar free approximately $480 billion, and an equivalent share of the production phase, estimated to be approximately $2 billion. -- The total of $2.5 billion for the entire program is approximately the same as General Dynamics would have received if Japan had bought the F-16 aircraft directly. intended results to) in -- The agreement an estimated 22,700 man-years of jobs for American workers. TECHNOLOGY TRANSFER: Sensitive U.S. technology is fully protected under the FSX agreement. It cannot be diverted to other uses without express U.S. consent. Moreover, the technology is not being given away: -- Japan will pay an R&D recoupment charge for the baseline F-16 technology, thereby lowering the investment costs of our own F-16 program. -- Japan will also pay a royalty charge for every FSX produced. The U.S. will have access to all technology related to the FSX -- at no charge for technology derived from American- origin technology, and a guaranteed right to purchase all technology which Japan brings to the project or which is derived from such technology. Certain state of -the- art technologies from the most recent models of the F-14 will not be tran sferred. CONCLUSION: O FSX is a new concept. It was conceived to assure that the future development of Japanese military aircraft will be carried out in cooperation with the United States and that American industry will participate fully. # # # 033362SS Document No. WHITE HOUSE STAFFING MEMORANDUM 5/4/89 5/5/89 4:00 PM DATE: ACTION/CONCURRENCE/COMMENT DUE BY: TALKING POINTS ON THE FSX AGREEMENT SUBJECT: ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER BREEDEN ROGERS CARD WINSTON CICCONI PINKERTON DEMAREST FITZWATER GRAY HAGIN REMARKS: Please forward any comments directly to Chriss Winston, Rm. 122, x2930, no later than 4:00 PM, Friday, May 5, 1989, with an info copy to my office. Thank you. no comments RESPONSE: James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 ( (Grant) ) 1989 MAY 4, 1989 FII 2: TALKING POINTS ON THE FSX AGREEMENT On May 1, President Bush sent notification to Congress of his support for the FSX agreement, with clarifications of the original Memorandum of Understanding which was signed in November of 1988. These clarifications related to workshare and the transfer of technology. The final agreement was reached after thorough and intense interagency review, and the President is satisfied that the agreement in every respect meets, our requirements and will serve the national interest. It will contribute significantly to strengthening our mutual defense posture in East Asia. THE AGREEMENT ITSELF: Under the FSX agreement, Japan will fund the entire project; no U.S. taxpayer money will be spent. American companies will receive a 40% share of the development, estimated to be approximately $480 billion, and an equivalent share of the production phase, estimated to be approximately $2 billion. -- The total of $2.5 billion for the entire program is approximately the same as General Dynamics would have received if Japan had bought the F-16 aircraft directly. -- The agreement results in an estimated 22,700 man-years of jobs for American workers. TECHNOLOGY TRANSFER: Sensitive U.S. technology is fully protected under the FSX agreement. It cannot be diverted to other uses without express U.S. consent. Moreover, the technology is not being given away: -- Japan will pay an R&D recoupment charge for the baseline F-16 technology, thereby lowering the investment costs of our own F-16 program. -- Japan will also pay a royalty charge for every FSX produced. The U.S. will have access to all technology related to the FSX -- at no charge for technology derived from American- origin technology, and a guaranteed right to purchase all technology which Japan brings to the project or which is derived from such technology. CONCLUSION: O FSX is a new concept. It was conceived to assure that the future development of Japanese military aircraft will be carried out in cooperation with the United States and that American industry will participate fully. # # # Document No. 00 WHITE HOUSE STAFFING MEMORANDUM 5/4/89 5/5/89 4:00 PM DATE: ACTION/CONCURRENCE/COMMENT DUE BY: TALKING POINTS ON THE FSX AGREEMENT SUBJECT: ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER BREEDEN ROGERS CARD WINSTON CICCONI PINKERTON DEMAREST FITZWATER GRAY HAGIN REMARKS: Please forward any comments directly to Chriss Winston, Rm. 122, x2930, no later than 4:00 PM, Friday, May 5, 1989, with an info copy to my office. Thank you. RESPONSE: ok GBW 5/4 James W, Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 THE WHITE HOUSE WASHINGTON May 5, 1989 MEMORANDUM FOR CHRISS WINSTON FROM: STEPHEN G. RADEMAKER SR ASSOCIATE COUNSEL TO THE PRESIDENT SUBJECT: Talking Points on the FSX Agreement At the request of James W. Cicconi, Counsel's Office has reviewed the above-referenced matter. There appears to be an error in the final paragraph of the first page. If development of the FSX will result in revenues of $480 billion for U.S. companies, the President deserves more credit for this agreement than he has received to date. We suspect that the correct figure is $480 million. Apart from this correction, Counsel's Office has no legal objection to the talking points as drafted. CC: James W. Cicconi ID # 03336255c CU WHITE HOUSE CORRESPONDENCE TRACKING WORKSHEET O . OUTGOING H INTERNAL I . INCOMING Date Correspondence Received (YY/MM/DD) / / Name of Correspondent: Jenes W. Ciccone MI Mail Report User Codes: (A) (B) (C) Subject: Talking Points on the FSX agreement ROUTE TO: ACTION DISPOSITION Tracking Type Completion Action Date of Date Office/Agency (Staff Name) Code YY/MM/DD Response Code YY/MM/DD Cuole ORIGINATOR 89,05,04 / / Cyat 14 Referral Note: R 89/05/04 I 589,05115 Referral Note: / 14:00pm 14:00 / / / / - Referral Note: / / / / Referral Note: / / / / - Referral Note: ACTION CODES: DISPOSITION CODES: A . Appropriate Action I . Info Copy Only/No Action Necessary A Answered C Completed C - Comment/Recommendation R . Direct Reply w/Copy B . Non-Special Referral S Suspended D Draft Response S For Signature F Furnish Fact Sheet X Interim Reply to be used as Enclosure FOR OUTGOING CORRESPONDENCE: Type of Response = Initials of Signer Code = "A" Completion Date = Date of Outgoing Comments: Please Yarward Comments directlints Chris Winston Rm 122 x2930 no later than Send all routing updates to Central Reference (Room 75, OEOB). Keep 4:00 p.m. this worksheet attached Orday to the original May incoming 5 1989 letter. a/an unfo office to Ceconics Always return completed correspondence record to Central Files. Refer questions about the correspondence tracking system to Central Reference, ext. 2590. 5/81 Document No. 033362SS WHITE HOUSE STAFFING MEMORANDUM 5/4/89 5/5/89 4:00 PM DATE: ACTION/CONCURRENCE/COMMENT DUE BY: TALKING POINTS ON THE FSX AGREEMENT SUBJECT: ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER BREEDEN ROGERS CARD WINSTON CICCONI PINKERTON DEMAREST FITZWATER GRAY HAGIN REMARKS: Please forward any comments directly to Chriss Winston, Rm. 122, x2930, no later than 4:00 PM, Friday, May 5, 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 ( (Grant) ) 10 May 4, 1989 2 TALKING POINTS ON THE FSX AGREEMENT On May 1, President Bush sent notification to Congress of his support for the FSX agreement, with clarifications of the original Memorandum of Understanding which was signed in November of 1988. These clarifications related to workshare and the transfer of technology. The final agreement was reached after thorough and intense interagency review, and the President is satisfied that the agreement in every respect meets our requirements and will serve the national interest. It will contribute significantly to strengthening our mutual defense posture in East Asia. THE AGREEMENT ITSELF: Under the FSX agreement, Japan will fund the entire project; no U.S. taxpayer money will be spent. American companies will receive a 40% share of the development, estimated to be approximately $480 billion, and an equivalent share of the production phase, estimated to be approximately $2 billion. -- The total of $2.5 billion for the entire program is approximately the same as General Dynamics would have received if Japan had bought the F-16 aircraft directly. -- The agreement results in an estimated 22,700 man-years of jobs for American workers. TECHNOLOGY TRANSFER: O Sensitive U.S. technology is fully protected under the FSX agreement. It cannot be diverted to other uses without express U.S. consent. Moreover, the technology is not being given away: -- Japan will pay an R&D recoupment charge for the baseline F-16 technology, thereby lowering the investment costs of our own F-16 program. -- Japan will also pay a royalty charge for every FSX produced. The U.S. will have access to all technology related to the FSX -- at no charge for technology derived from American- origin technology, and a guaranteed right to purchase all technology which Japan brings to the project or which is derived from such technology. CONCLUSION: o FSX is a new concept. It was conceived to assure that the future development of Japanese military aircraft will be carried out in cooperation with the United States and that American industry will participate fully. ### 033362SS Document No. 3334 WHITE HOUSE STAFFING MEMORANDUM 5/4/89 5/5/89 4:00 PM DATE: ACTION/CONCURRENCE/COMMENT DUE BY: TALKING POINTS ON THE FSX AGREEMENT SUBJECT: ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER BREEDEN ROGERS CARD WINSTON CICCONI PINKERTON DEMAREST FITZWATER GRAY HAGIN REMARKS: Please forward any comments directly to Chriss Winston, Rm. 122, x2930, no later than 4:00 PM, Friday, May 5, 1989, with an info copy to my office. Thank you. RESPONSE: TO: CHRISS WINSTON May 5, 1989 The NSC concurs with changes noted. Brent Ryle Scowdroft for James W. Cicconi Assistant to the President and Deputy to the Chief of Staff CC: Jim Cicconi Ext. 2702 89 MAY 4 P 3: 43 ( (Grant)) 1939 MY 4, 1989 222 TALKING POINTS ON THE FSX AGREEMENT On May 1, President Bush sent notification to Congress of his support for the FSX agreement, with clarifications of the original Memorandum of Understanding which was signed in November of 1988. These clarifications related to workshare and the transfer of technology. The final agreement was reached after thorough and intense interagency review, and the President is satisfied that the agreement in every respect meets our requirements and will serve the national interest. It will contribute significantly to strengthening our mutual defense posture in East Asia. THE AGREEMENT ITSELF: O Under the FSX agreement, Japan will fund the entire project; no U.S. taxpayer money will be spent. American companies share approximately work will receive a 40% share of the development, estimated to be \ approximately $480 billion, and an equivalent similar share of the M production phase, estimated to be approximately $2 billion. -- The total of $2.5 billion for the entire program is approximately the same as General Dynamics would have received if Japan had bought the F-16 aircraft directly. IS intended to -- The agreement results in an estimated 22,700 man-years A of jobs for American workers. TECHNOLOGY TRANSFER: Sensitive U.S. technology is fully protected under the FSX agreement. It cannot be diverted to other uses without express U.S. consent. Moreover, the technology is not being given away: -- Japan will pay an R&D recoupment charge for the baseline F-16 technology, thereby lowering the investment costs of our own F-16 program. -- Japan will also pay a royalty charge for every FSX produced. O The U.S. will have access to all technology related to the FSX -- at no charge for technology derived from American- origin technology, and a guaranteed right to purchase all technology which Japan brings to the project or which is derived from such technology. 0 Certain state -of -The-art technologies from the most CONCLUSION: recent models of the F-16 will not be transferred. O FSX is a new concept. It was conceived to assure that the future development of Japanese military aircraft will be carried out in cooperation with the United States and that American industry will participate fully. ### Document No. 033362SS WHITE HOUSE STAFFING MEMORANDUM 5/4/89 5/5/89 4:00 PM DATE: ACTION/CONCURRENCE/COMMENT DUE BY: TALKING POINTS ON THE FSX AGREEMENT SUBJECT: ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER BREEDEN ROGERS CARD WINSTON CICCONI PINKERTON DEMAREST FITZWATER GRAY HAGIN REMARKS: Please forward any comments directly to Chriss Winston, Rm. 122, x2930, no later than 4:00 PM, Friday, May 5, 1989, with an info copy to my office. Thank you. RESPONSE: see comment 1st page James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 ( (Grant)) 1989 020 TALKING POINTS ON THE FSX AGREEMENT On May 1, President Bush sent notification to Congress of his support for the FSX agreement, with clarifications of the original Memorandum of Understanding which was signed in November of 1988. These clarifications related to workshare and the transfer of technology. The final agreement was reached after thorough and intense interagency review, and the President is satisfied that the agreement in every respect meets our requirements and will serve the national interest. It will contribute significantly to strengthening our mutual defense posture in East Asia. THE AGREEMENT ITSELF: Under the FSX agreement, Japan will fund the entire project; Raul 5044 no U.S. taxpayer money will be spent. American companies will receive a 40% share of the development, estimated to be approximately $480 billion, and an equivalent share of the this seemalof production phase, estimated to be approximately $2 billion. -- The total of $2.5 billion for the entire program is approximately the same as General Dynamics would have I it think received if Japan had bought the F-16 aircraft directly. be -- The agreement results in an estimated 22,700 man-years of jobs for American workers. TECHNOLOGY TRANSFER: Sensitive U.S. technology is fully protected under the FSX agreement. It cannot be diverted to other uses without express U.S. consent. Moreover, the technology is not being given away: -- Japan will pay an R&D recoupment charge for the baseline F-16 technology, thereby lowering the investment costs of our own F-16 program. -- Japan will also pay a royalty charge for every FSX produced. The U.S. will have access to all technology related to the FSX -- at no charge for technology derived from American- origin technology, and a guaranteed right to purchase all technology which Japan brings to the project or which is derived from such technology. CONCLUSION: FSX is a new concept. It was conceived to assure that the future development of Japanese military aircraft will be carried out in cooperation with the United States and that American industry will participate fully. ### 033362SS Document No. WHITE HOUSE STAFFING MEMORANDUM 5/4/89 5/5/89 4:00 PM DATE: ACTION/CONCURRENCE/COMMENT DUE BY: TALKING POINTS ON THE FSX AGREEMENT SUBJECT: ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT I BATES UNTERMEYER BREEDEN ROGERS CARD WINSTON CICCONI PINKERTON DEMAREST FITZWATER GRAY HAGIN REMARKS: Please forward any comments directly to Chriss Winston, Rm. 122, x2930, no later than 4:00 PM, Friday, May 5, 1989, with an info copy to my office. Thank you. RESPONSE: no Changes James W, Cicconi Juanita Assistant to the President and Deputy to the Chief of Staff Ext. 2702