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323150460
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Talking Points--FSX Grant, 5/8/89
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323150460
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Talking Points--FSX Grant, 5/8/89
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13486-004
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Records of the White House Office of Speechwriting (George H. W. Bush Administration)
Speech Draft Files
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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