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    "ocrText": "Originally Processed With FOIA(s):\nFOIA Number:\nS\nFOIA\nMARKER\nThis is not a textual record. This is used as an\nadministrative marker by the George Bush Presidential\nLibrary Staff.\nRecord Group/Collection:\nGeorge H.W. Bush Presidential Records\nCollection/Office of Origin:\nSpeechwriting, White House Office of\nSeries:\nSpeech File Draft Files\nSubseries:\nChron File, 1989-1993\nOA/ID Number:\n13496\nFolder ID Number:\n13496-007\nFolder Title:\nSix Months of the Bush Administration 7/89 [3]\nStack:\nRow:\nSection:\nShelf:\nPosition:\nG\n25\n6\n4\n2\nINTERIOR\nDEPARTMENT of the INTERIOR\nMarch\n1849\nnews release\nOFFICE OF THE SECRETARY\nSteve Goldstein (0) 202-343-6416\nFor Release April 18, 1989\n(H) 202-887-5248\nINTERIOR SECRETARY LUJAN INITIATES REVIEW OF DEPARTMENTAL POLICIES ON\nOIL SPILL CONTINGENCY PLANS AND A RESEARCH PROGRAM\nON OIL SPILL CONTAINMENT AND CLEANUP TECHNOLOGY\nSecretary of the Interior Manuel Lujan announced today a two-phase\napproach to assuring the American public that essential domestic energy\nwill continue to be produced in an environmentally sound manner. The\nfirst step is for the Director of the Minerals Management Service, Barry\nWilliamson, to undertake an immediate and intensive review of current\nregulations and policies to see what changes need to be made for cleanup\nand oil spill containment from offshore exploration and production\nactivities.\nAdditionally, the Secretary announced the Department will initiate a\nresearch program on oil spill technology research, development and\ndemonstrations. The funding for enhancing the program will be evenly\nshared by the American Petroleum Institute.\nThe total budget will be $6 million for three years, over $2 million\nwill be allocated for the current fiscal year. The money will fund\nresearch in oil spill detection, containment, and cleanup technology.\nAmong the projects being considered are laboratory and field testing of\noil spill burning techniques, high-speed steerable booms, and new skimmer\ntechnologies for clearing oil from ice-laden waters; development and\ntesting of a variety of new dispersants and nondispersant chemicals; and\ndevelopment and testing of airborne instruments to aid in tracking and\nestimating oil spill thickness in open water. These activities will be\ncoordinated with other affected executive branch agencies including,\nDepartment of Transportation, Environmental Protection Agency, National\nOceanographic and Atmospheric Administration; and some work will be\naccomplished in cooperation with other countries.\n\"In the wake of the Exxon Valdez accident, we must make sure that our\noil spill contingency plans are thoroughly re-examined to meet our\nresponsibility for protecting the environment. A responsible program such\nas this will also help us secure our future energy needs.\n\"Americans have a right to expect that care and caution are exercised\nwhen domestic oil and gas are brought to the market from remote or\nenvironmentally sensitive areas. Oil and gas are important resources to\nour economy and national security and they must continue to be produced\nand handled as safely as possible,\" the Secretary said.\n-DOI-\n89. 07/26 P03 * DEPT OF INTERIOR\nJUL 26 '89 18:14\nFROM DEPT OF JUSTICE\nPAGE 004\nMedia have ignored civil rights action\nThe media have overlooked the Bush Ad-\nThe attorney general indicated that the\nministration's first opportunity to show where\nCarpenter case would serve as a model of\nit stands on a major civil rights issue, Attor-\nhow the department would handle future civ-\nney General Dick Thornburgh told USA TO-\nil rights cases.\nDAY Monday.\n\"Gvil rights laws will be vigorously en-\n\"Why is the press keeping this a secret?\"\nforced,\" be said.\nhe asked at the close of a news conference.\nIn recent months, the Supreme Court has\n\"Why is no one reporting on the Carpenter\nhanded down several decisions that civil\ncase?\"\nrights activists have said would slow minority\nIn that case last week, the Justice Depart-\njob progress.\nment broke ranks with January's so-called\nThornburgh told USA TODAY, \"In the\nRichmond decision, in which the court ruled\nwake of the Supreme Court cases, the presi-\nthat laws setting aside 30% of that city's con-\ndent directed US to monitor the implementa-\nstruction contracts for minorities were un-\ntion of those four or five holdings of the court\nconstitutional.\n\"In the first opportunity we've had to carry\nThornburgh's office argued in favor of a\nout our monitoring function, we've showed\n10% minority set-aside program operated by\nwe take it seriously and that we're going to\nthe Department of Transportation in North\npursue every means to ensure equal opportu-\nCarolina, where the contractor used the Rich-\nnity.\"\nmond decision as his defense.\n- Barbara Reynolds\nDepartment of Justice will be\nunchanged. We're still going to\nbe in the business of tracking\ndown major lords and seizing\ntheir assets and disrupting\ntheir organizations. But law en-\nforcement can deal with the\nsupply side. On the demand\nside, that war is going to be\nwon not in the courtroom, but\nin the school room, in the com-\nmunity, in the work place, in\nthe family.\nUSA TODAY: Does the mil-\nitary have a role?\nTHORNBURGH: The mili-\ntary has no law enforcement\nrole, and that is a distinction\nthat we have made from the\nbeginning of this country. That\ndoes not mean however, that\nthe military is unable to sup-\nport law-enforcement activities\nin a wide variety of ways. For\nexample, National Guard units\naround the country are work-\ning with state and local law en-\nforcement agencies in support\ncapacities.\nUSA TODAY: What is your\npersonal opinion of the Sur\npreme Court's recent abor-\ntion ruling?\nTHORNBURGH: My view\nhas always been opposed to\nabortion on demand. I think\nregulation of abortion is prop-\ner, that abortion really should\nbe confined to those areas\nwhere life of the mother is in\nquestion or her health is in seri-\nous jeopardy, and in those\ncases where conception result-\ned from rape or incest. To do\notherwise is simply to view\nabortion as an alternative to\nbirth control. I find that unac-\nceptable.\nDocument No. 05691955\nWHITE HOUSE STAFFING MEMORANDUM\nDATE: 7/25/89\nACTION/CONCURRENCE/COMMENT DUE BY:\n12:00 NOON, 7/26/89\nSUBJECT: SIX MONTHS OF THE BUSH ADMINISTRATION\nACTION FYI\nACTION FYI\nVICE PRESIDENT\nMCCLURE\nSUNUNU\nNEWMAN\nSCOWCROFT\nPORTER\nDARMAN\nSTUDDERT\nBATES\nUNTERMEYER\nBREEDEN\nBennett\nCARD\nBoskin\nCICCONI\nPetersmeyer\nDEMAREST\nRogers\nFITZWATER\nWington\nGRAY\nPintarton\nHAGIN\nREMARKS:\nPlease provide your comments/recommendations directly to Chriss Winston\n(Rm. 122, Ext. 2930) with an info copy to my office no later than\n12:00 NOON, WEDNESDAY, JULY 26, 1989. Please note that TWO DOCUMENTS\nare attached. Thank you.\nRESPONSE:\nfem Parters\npages.\nTrade,\nRaffice.\nclipped\nsteel\nthe\nJames W. Cicconi\nAssistant to the President\nyo\nand Deputy to the Chief of Staff\nExt. 2702\n1\n( (Grant))\nJuly 21, 1989\nDraft two\nA:sixmonth\nBUILDING A BETTER AMERICA\nSIX MONTHS OF THE BUSH ADMINISTRATION\nSUMMARY\nAs the Bush Administration passes the six-month mark,\nAmericans know that the President has set the agenda on a number\nof fronts domestically -- from the environment and education to\nthe fight against drugs and crime. The economy is strong, with\nthe current economic expansion continuing to set new records.\nMeanwhile, America is standing tall in the international arena,\nafter President Bush's leadership at two multilateral summits\npaved the way for greater understanding among the allies and\nimproved relations with the Soviet Union and the Eastern Bloc\nnations.\nKEEPING THE ECONOMY STRONG\nRecord expansion: During the current economic expansion --\nnow in its 79th month as of June -- nearly 20 million jobs\nhave been created and the unemployment rate has fallen to\nlevels not seen in 15 years. Income levels continue to set\nrecords, and industrial output is nearly double that of\n2\nEurope. Consumer price inflation has remained under 5\npercent for the past 7 years.\nBudget agreement: The President has put forth a budget which\nrestrains overall growth of spending and meets the Gramm-\nRudman-Hollings targets -- with no new taxes in fiscal year\n1990. The President and Congress announced on April 14 a\nbudget plan to reduce the estimated fiscal year 1990 deficit\nby about $64 billion below fiscal year 1989.\nSavings and Loans: The Administration's proposal to solve\nthe savings and loan crisis was passed by the House and\nSenate and is currently in conference.\nThird World debt: The Administration has taken the lead in\nfinding a way to reduce the debt burden of developing\ncountries. With the Administration's encouragement, the IMF\nand World Bank have set aside funds to aid debt reduction.\nCapital gains tax cut: The President has sent to the\nCongress a proposal which would re-establish a capital gains\ndifferential will encourage capital formation, saving, and\njob formation.\nMinimum wage: The President, by vetoing the across-the-board\nincrease in the minimum wage proposed by Congress, preserved\n0 Street Imports. The Resident initiated a Two to and a half at\namougements a (VRAS) that currently limit stude injusts the\nyear in regionsible and orderly manme the Volunta into\nStreet Trade Liberalization Program designed plase Restrait\nUnited States and negotiate 3 an international concerns 1\nto address trade -distrating practics\njob opportunities for the disadvantaged and blunted the\nadverse economic impact such a move would have had.\nInternational Trade: The Bush Administration successfully\nbroke a stalemate in international trade talks and advanced\nits proposal to correct and prevent trade distortions in\nagriculture. It is engaged in bilateral trade talks with\nimportant trading partners to encourage them to open their\nmarkets to our exports.\nSEIZING INTERNATIONAL OPPORTUNITIES FOR PEACE\n\"Europe Whole and Free\": In a series of major speeches in\nApril and May, the President outlined a vision of a new\nEurope -- secure, prosperous, whole and free -- vindicating\nfour decades of Western policies.\nPoland and Hungary: The President signalled his strong\nsupport for the people of Hungary and Poland as they move\ntoward more democratic reforms -- by visiting those nations\nand offering political and moral support as well as economic\nand trade incentives.\nEconomic Summit: The unity of the industrial democracies was\ndemonstrated at the Paris Economic Summit, as President Bush\n4\ntook the lead in encouraging our allies to support Polish\nand Hungarian economic reforms and to cooperate in\naddressing on environmental problems.\n\"Beyond Containment\": The President has responded to great\nchanges in the Soviet Union with his policy to move \"beyond\ncontainment\" by integrating the Soviet Union into the world\norder.\nArms Control/NATO Summit: In arms control, the pace of\nnegotiations with the Soviet Union has accelerated, with new\nAmerican initiatives on Conventional Forces in Europe (which\nthe President unveiled at the NATO Summit), on banning\nchemical weapons, and on strategic arms reduction.\nSoviet Relations: The US-Soviet dialogue on conflicts in\nregions of the Third World has resumed intensively, and a\nUS-Soviet dialogue has begun on a new range of global\nproblems which require global cooperation, such as\nterrorism, the environment, and narcotics.\nChina: In response to the suppression of the democratic\nmovement in China, the President signalled that we cannot\ncondone repression while he worked to preserve the basic\nelements of a strategically important relationship.\n5\nCentral American accord: The President and Congressional\nleaders agreed on March 24 on a bipartisan strategy for\npeace and democracy in Central America.\nINVESTING IN OUR FUTURE\nEducation: The President proposed and sent to the Congress a\ncomprehensive education package, The Educational Excellence\nAct of 1989, which includes seven initiatives on merit and\nmagnet schools, alternative certification of teachers,\nexcellence awards for teachers, emergency grants to help\nurban schools to fight drugs, new funding for endowments at\nHistorically Black Colleges, and a National Science Scholars\nprogram.\nNatural Gas Deregulation: On July 26, the President signed\ninto law the Wellhead Decontrol Act of 1989, which ends all\nremaining price controls on natural gas. This will phase\nout all federal price controls on natural gas.\nClean Air Act revisions: On July 21, President Bush\ntransmitted to the Congress the first revisions to the Clean\nAir Act since 1977. His legislation is designed to\n6\ndrastically reduce three major threats to the nation's\nenvironment: acid rain, urban air pollution, and toxic air\nemissions.\nHazardous waste: The President announced he will be seeking\nnew legislation to ban all exports of hazardous waste except\nwhere an agreement already exists with the receiving country\nto provide for its safe handling.\nOzone depletion: The President has called for a total\nworldwide phaseout of CFCs by the year 2000, provided safe\nsubstitutes are available, in order to prevent further\ndamage to the earth's protective ozone layer.\nClean water: The EPA has started a tracking system for\nmedical wastes and the Justice Department has started a task\nforce to prosecute these abuses -- the first step in a\ncomprehensive program to help keep our beaches clean. The\nPresident is committed to end ocean dumping of sewage sludge\nby 1991.\nWetlands: The President is committed to \"no net loss of\nwetlands\" and is directing his agencies to work toward that\ngoal. He has also proposed $206 million in his budget to\nexpand our parks and wildlife refuges.\n7\nCombatting Violent Crime: President Bush transmitted to\nCongress The Comprehensive Crime Control Act of 1989 to\ncombat violent crime. Measures will augment enforcement and\nprosecution, strengthen current law, control certain semi-\nautomatic weapons, and expand prison capacity.\nFighting Drug Abuse: The Administration is requesting $6\nbillion in funding for FY 1990 to fight the drug war,\nincreasing outlays by nearly $1 billion for drug education,\ntreatment and enforcement.\nDrug Czar: The Office of National Drug Control Policy has\nresponded to the drug emergency in the District of Columbia\nby expanding the Metropolitan Area Task Force, working for\nmore prisons, providing support in enforcement, and\nproviding assistance to local treatment efforts.\nSpace: The President announced a three step commitment to\nestablish America's preeminence in space -- Space Station\nFreedom, a permanent presence on the Moon, and a manned\nmission to Mars.\nPublic Housing: The Bush Administration is working to make\npublic housing drug free, to protect the rights of the vast\nmajority of decent, law-abiding public housing residents.\n8\nWORKING FOR A KINDER, GENTLER AMERICA\nChild Care: The President has transmitted to the Congress a\nchild care package, the Working Family Child Care Assistance\nAct of 1989 which provides a new refundable child care tax\ncredit of up to $1000 per child under four, for low and\nmoderate income working families. This legislation will\nmake the existing Child and Dependent Care Tax Credit\nrefundable, and does not discriminate against religious- and\nfamily-based child care.\nHead Start: The President has also transmitted legislation\nto the Congress which would increase the FY 1990\nauthorization for Head Start by $250 million; this will pay\nfor enrollment of up to 95,000 more four-year-olds in the\nprogram.\nNational Service: The President spearheaded a movement to\nencourage national service, and announced the formation of a\nfoundation called the Points of Light Initiative to\nidentify, enlarge and recreate those community service\ninitiatives which are working.\nWelfare Reform: The Administration issued proposed rules on\nApril 18 to implement the major provisions of the Family\n9\nSupport Act of 1988, as a step toward welfare reform. The\nAdministration is proposing to spend $3.3 billion over the\nnext five years implementing the JOBS program. The changes\nwill help reduce the number of individuals on welfare.\nMedicaid: On April 18, the Administration forwarded to\nCongress proposed legislation to make federal Medicaid\nprograms better serve pregnant women, infants and children.\nHomelessness: President Bush has called for fully funding\nthe McKinney Homeless Assistance Act and for a new $50\nmillion matching grant program to promote public/private\npartnerships to assist homeless families and the mentally\nill.\nEnterprise Zones: President Bush asked Congress to enact\nlabor and capital-based incentives -- through urban\nenterprise zones -- to create jobs and entrepreneurial\nactivity in our most distressed communities.\nCampaign Finance Reform: The President's comprehensive\ncampaign finance proposal is designed to lessen the power of\nspecial economic interests and restore competition to\nAmerican Congressional elections.\n10\nO\nEthics: President Bush sent comprehensive ethics legislation\nto the Congress on April 12th, and he issued an Executive\nOrder announcing ethical principles for the conduct of\nexecutive branch employees.\nO\nWhistleblower Protection: On April 10, the President signed\nS. 20, the \"Whistleblower Protection Act of 1989.\" This law\nwill strengthen the protections and procedural rights\navailable to those federal employees who report misdeeds and\nmismanagement.\nO\nCivil Rights: The Administration has taken a number of\nactions to protect the civil rights of all Americans,\nincluding several court actions in key civil rights cases.\n###\nBUILDING A BETTER AMERICA\nSIX MONTHS OF THE BUSH ADMINISTRATION\nKEEPING THE ECONOMY STRONG\nMaintaining the current expansion with low inflation is the\nkey to improving standards of living, increasing job\nopportunities for all Americans, and increasing investment in\nproductive capacity. Economic performance during this expansion\nhas been very good, and the policies proposed by the Bush\nAdministration are designed to preserve this strong record.\nRecord peacetime expansion: The current expansion reached 7.9\nmonths in June.\nJob creation: Nearly 20 million new jobs have been created\nduring this expansion, and the unemployment rate fell to\nlevels not seen in 15 years. During this decade, America\nhas created more new jobs than Japan and the nations of\nWestern Europe combined.\nRecord income: Real per capita disposable personal income --\npersonal income after taxes and inflation -- has risen 19\npercent during this expansion. Real median family income --\nthe level of income after inflation which splits the family\n2\nincome distribution in half -- set a new record in 1987, the\nlast year for which data are available.\nIndustrial output: During this expansion, American\nindustrial output has grown almost 41 percent compared with\noverall economic growth of 29 percent. This is almost\ndouble Europe's growth rate in industrial output.\nHigher national saving and investment: During the first\neight months of fiscal year 1989, the Federal Government\nbudget deficit is less than during the same period in the\nprevious fiscal year. Partly due to the discipline of GRH,\nthe Federal deficit has declined from 5.4 percent of GNP in\nfiscal year 1985 to about 2.9 percent this fiscal year. The\npersonal saving rate has risen to 5.4 percent in the first\nquarter of 1989 from its recent low of 2.2 percent in the\nsecond quarter of 1987. Business fixed investment as a\npercent of real GNP has risen from a recent low of 11.1\npercent in the first quarter of 1987 to 12.3 percent in the\nfirst quarter of 1989.\nInflation under control: Consumer price inflation has\nremained under 5 percent for the past 7 years, and the\nrecent slowing in economic growth to a sustainable rate will\nlessen price pressures in the near future. The\n3\nAdministration and the Federal Reserve share the goal of\nultimately achieving price stability.\nACTION BY THE ADMINISTRATION:\nPresenting a budget: The President put forth a budget which\naddresses our fundamental obligations for the protection of\nnational security and support of the needy, while providing\nsufficient funds to advance high-priority initiatives. The\nPresident's budget restrains overall growth of spending and\nmeets the Gramm-Rudman-Hollings targets -- with no new taxes\nin fiscal year 1990.\nReaching a budget agreement with Congress: The President\nand Congress announced on April 14 a budget plan to reduce\nthe estimated fiscal year 1990 deficit by about $64 billion\nbelow fiscal year 1989. The deficit will be reduced to\n$99.4 billion, as required by the Gramm-Rudman-Hollings law.\nThis is the first budget agreement reached before the start\nof the budget year and not framed in the context of crisis.\nSavings and Loan reform: The Administration's proposal to\nsolve the savings and loan crisis was passed by the House\nand Senate and is currently in conference. The proposal\nincluded provisions to:\n4\nAssure the financial integrity of deposit insurance by\nraising the annual premium rate for both commercial\nbanks and S&Ls.\nResolve the status of existing insolvent banks in an\norderly fashion.\nImprove supervisory control by bringing S&Ls up to the\nsame standards applied to commercial banks.\n--\nEnhance the enforcement of bank fraud provisions.\nSolution of the international debt problem: The\nAdministration has taken the lead in finding a way to reduce\nthe debt burden of developing countries. With the\nAdministration's encouragement, the IMF and World Bank have\nset aside funds to aid debt reduction in conjunction with\ntheir ongoing programs to promote investment, growth, and\nthe return of flight capital to these countries.\no\nCapital gains tax rate cut: The re-establishment of a\ncapital gains differential will encourage capital formation,\nsaving, and job formation. The President has sent to the\nCongress a proposal which includes:\n--\nA 45 percent capital gains exclusion for qualified\ncapital gains, making the maximum capital gains tax\nrate 15 percent.\n--\nA phased-in increase in the qualifying holding period\nfrom one year to three years.\n5\n--\nAn exemption from the capital gains tax for families\nearning under $20,000.\nMinimum wage proposal: The President believes in keeping job\nopportunities available for youth and for those seeking to\nenter the economic mainstream. The across-the-board\nincrease in the minimum wage which was proposed by Congress\nwould have had an adverse economic impact and cut job\nopportunities drastically. Because of this, he vetoed the\nbill passed by Congress.\nInternational Trade: The Administration is forcefully\npromoting the opening of world markets. It successfully\nbroke a stalemate in international trade talks and advanced\nits proposal to correct and prevent trade distortions in\nagriculture. It is engaged in bilateral trade talks with\nimportant trading partners to encourage them to open their\nmarkets to our exports. Together these efforts should\ngreatly expand opportunities for U.S. exports.\nSteel,\nAgricultural initiatives: The Administration has announced\nsee\nadditional advance deficiency payments of 10 percent\nWI\nSummary)\navailable to producers of wheat, feed grains, rice and\nupland cotton. In addition, a top-level Working Group on\nRural Development was established by the President to focus\non an action-oriented agenda.\n6\nClean Air: The Administration transmitted to the Congress\non July 21 a Clean Air Act which will harness the power of\nthe marketplace in achieving the goals of the act in the\nmost cost-effective manner possible.\nSEIZING INTERNATIONAL OPPORTUNITIES FOR PEACE\nPresident Bush is committed to a strong American role of\nworld leadership and sees in present global trends an\nunprecedented opportunity for strengthening both world peace and\nthe cause of freedom. He has taken the initiative to seize that\nopportunity.\nACTION BY THE ADMINISTRATION:\n\"Europe Whole and Free\": In a series of major speeches in\nApril and May, the President outlined a vision of a new\nEurope -- secure, prosperous, whole and free -- vindicating\nfour decades of Western policies.\n--\nWestern Europe: As the European Community heads toward\na single market in 1992, and also develops its\npolitical institutions and a more coordinated approach\nto foreign policy, the President has pledged his\nsupport for close cooperation with the EC and its\nmember states. We see the resurgence of Western Europe\n7\nas a triumph of Western values and principles. We\nwelcome its success, confident that a mature\npartnership will serve mutual interests.\n-- Eastern Europe: As Poland and Hungary take\nunprecedented steps of reform, permitting first steps\ntoward pluralism, democracy, and market economic\npolicies, the United States has signaled its strong\nsupport. Offering political and moral support as well\nas economic incentives, the President proposed:\n-- Poland: Following up on the program the President\nannounced earlier this year in Hamtramck, Michigan, he\ncalled for action to declare Poland a beneficiary\ncountry under the U.S. Generalized System of\nPreferences. OPIC will be authorized to operate in\nPoland, and the US is proposing a private business\nagreement that will promote contacts between the\nprivate sectors of both countries. The President will\nask Congress to provide a $100 million fund to help\ncapitalize the Polish private sector, and encourage the\nWorld Bank to move ahead with new loans to help Polish\nagriculture and industry. Finally, he will ask\nCongress for $15 million in a cooperative venture with\nPoland to help fight air and water pollution in Krakow.\nother members\nHe has encouraged our friends in the Paris Club to\nagree\nofficial\n^\nprovide more liberalized terms in rescheduling Polish\na\ndebt.\n8\n-- Hungary: The President will ask the Congress to\nauthorize a $25 million fund as a source of new capital\nto invigorate the Hungarian private sector. Pending\nthe passage of new emigration legislation in the\nHungarian Parliament, the President will inform\nCongress that Hungary has been released from the\nrestrictions of the Jackson-Vanik Amendments, allowing\nmore liberal access to the American market. The\nPresident also offered access to the Generalized System\nof Preferences. He called for OPIC to operate in\nHungary, and called for greater scientific, technical,\neducational and cultural exchanges between the US and\nHungary. The President said that the US will open an\nAmerican House in Budapest, and will seek to establish\nan International Environmental Center for Central and\nEastern Europe, in Budapest as well. Finally, he\nannounced that the Peace Corps would operate in Hungary\n-- the first time in a European country.\n-- The Economic Summit in Paris: The mission of the\nPresident's historic visit to Poland and Hungary in\nearly July, and of the President's successful effort at\nthe Paris Economic Summit was to promote concerted\nactions in areas of mutual concern among the industrial\ndemocracies. The unity of the industrial democracies\nwas demonstrated, as they dealt with a variety of\nissues from the economy to East-West strategies to\n9\nglobal environmental issues. Similarly, the solidarity\nof the democracies was demonstrated earlier at the NATO\nsummit, as the North Atlantic allies dealt with arms\ncontrol initiatives.\n--\nThroughout the trip, the President declared that we\nface a historic opportunity to lower the barriers that\nhave kept Europe divided. The Cold War began over\nEastern Europe, and if it is to end, it must end there\nas well.\n\"Beyond Containment\": Seeing a historic process of change\nalso in the Soviet Union, the President has declared his\nintention to move beyond the successful policy of\ncontainment of Soviet power to a new policy whose goals is\nintegrating the Soviet Union into the world community as a\nconstructive partner. Constructive changes so far in Soviet\npolicies -- in human rights, economic reforms, and\nsettlement of some international conflicts -- need to be\nencouraged and broadened. The United States will be ready\nto respond to such further developments. Already:\n--\nThe US-Soviet dialogue on conflicts in regions of the\nThird World has resumed intensively, with regular\nmeetings at the level of Assistant Secretary of State.\n-- A US-Soviet dialogue has begun on a new range of global\nproblems which require global cooperation, such as\nterrorism, the environment, and narcotics.\n10\n--\nIn arms control, the pace of negotiations has\naccelerated, with new American initiatives on\nConventional Forces in Europe (which the President\nunveiled at the NATO Summit), on banning chemical\nweapons, and on strategic arms reduction.\nChina: In response to the tragic suppression of the\ndemocratic movement in China, the President ordered the\nsuspension of all government-to-government sales and\ncommercial exports of weapons, suspension of visits between\nUS and Chinese military leaders, sympathetic review of\nrequests by Chinese students in the United States to extend\ntheir stay, and review of other aspects of US-PRC bilateral\nrelations. The President's policy is to signal that we\ncannot condone repression, but also to preserve the basic\nelements of a relationship that has itself played a major\npart in China's recent policy of reform and openness as well\nas being of enormous strategic importance.\nBipartisan Accord on Central America: The President and\nCongressional leaders agreed on March 24 on a bipartisan\nstrategy for peace and democracy in Central America:\n-- Regional peace: The President and Congress agreed that\nthe region's democracies deserve our support, that\nNicaragua's subversion of its neighbors must end, and\n11\nthat Soviet support for violence and subversion in the\nhemisphere must also end.\n--\nHumanitarian aid: Congress agreed to support the\nAdministration's request for continued humanitarian\nassistance for the Nicaraguan Democratic Resistance at\ncurrent levels through the elections in Nicaragua\nscheduled for February 1990.\n:\nDemocracy: The Communist Sandinistas are being put to\nthe test next February -- to permit a real democratic.\ncontest for political power, fulfilling the promises of\ndemocratic pluralism that they have made (and broken)\nso often before.\nMiddle East Peace Process: The Administration is supporting\nthe Middle East parties in efforts to launch a peace\nprocess. Our approach is based on the concept of\nPalestinian elections in the occupied territories, which we\nbelieve can be a step toward a comprehensive peace\nsettlement that assures Israel's security and the legitimate\npolitical rights of the Palestinians.\nhas\nBush administration's\nonto\nInitiative on Third World Debt: The President's initiative\nIs\n+\nto strengthen the international strategy on Third World debt\nhaved\nhas already received broad support from both industrial and\nthere\ndeveloping countries. The approach is designed to promote\nsustained growth in developing countries by:\n12\n--\nEmphasizing sound market-oriented economic policies in\ndebtor countries, particularly measure to promote\ninvestment and repatriation of flight capital;\n:\nIncreasing the focus on debt and debt service reduction\nto complement new lending by commercial banks;\n--\nUsing resources from the World Bank and IMF to catalyze\nvoluntary debt and debt service reduction by the\ncommercial banks.\nGATT: In the Uruguay Round of GATT trade negotiations,\nprogress has been made toward a multilateral agreement\nreducing trade barriers to exports.\nBilateral Meetings: The President has met with a total of\nXXX foreign leaders while in office, including 18 bilateral\nmeetings during the trip to Emperor Hirohito's funeral, XX\nduring the NATO Summit, and XX on the trip to Poland,\nHungary, the Netherlands, and the Economic Summit.\nINVESTING IN OUR FUTURE\nEDUCATION\nThe President's actions to improve education are guided by\nfour key principles: that excellence and success in education\nshould be recognized and rewarded; that federal funding should be\ntargeted to those who need it most; that choice and flexibility -\n13\n- for educators, parents and students -- are important to\neducational reform and to achieving excellence; and finally, that\ngreater accountability is needed in the education system to\nassure that students are actually receiving the highest quality\neducation.\nACTION BY THE ADMINISTRATION:\nO\nThe President proposed and sent to the Congress a\ncomprehensive education package, The Educational Excellence\nAct of 1989 which includes seven initiatives:\n-- The Presidential Merit Schools program -- to reward\nschools that have made substantial progress in raising\nstudents' educational achievement, creating a safe and\ndrug-free school environment, and reducing the drop-out\nrate.\n-- A new Magnet Schools of Excellence program -- to\nsupport the establishment, expansion or enhancement of\nmagnet schools, increasing parental choice and\nimproving quality education.\n-- The Alternative Certification of Teachers and\nPrincipals program -- to assist States interested in\nbroadening the pool of talent from which to recruit\nteachers and principals.\n14\n:\nPresident's Awards for Excellence in Education -- to be\nawarded to public and private school teachers in every\nstate who meet the highest standards of excellence.\n--\nDrug-free Schools Urban Emergency Grants -- to provide\nspecial assistance to selected urban school districts\nthat are disproportionately affected by drug\ntrafficking and abuse.\n:\nA National Science Scholars program -- to provide\ncollege scholarships to high school seniors who have\nexcelled in the sciences and mathematics.\n:\nAdditional Funding Authorization for Endowment Matching\nGrants at Historically Black Colleges and Universities\nto strengthen HBCUs by building endowments, an\nespecially effective way to create financial strength\nand long-term security.\nTHE ENVIRONMENT\nPresident Bush, a long-time environmentalist, has taken\nstrong action to protect the environment. He is working\nshoulder-to-shoulder with Interior Secretary Lujan, Energy\nSecretary Watkins, and EPA Administrator Reilly on a number of\nfronts.\n15\nACTION BY THE ADMINISTRATION:\nNatural Gas Decontrol: On July 26, the President signed into\nlaw the Wellhead Decontrol Act of 1989, which ends all\nremaining price controls on natural gas. This will phase\nout all federal price controls on natural gas.\nClean Air legislation: President Bush transmitted to the\nCongress a sweeping program to ensure clean air for all\nAmericans. The President's plan, transmitted to Congress on\nJuly 21, 1989, calls for the first revisions to the Clean\nAir Act since 1977 and is designed to curb three major\nthreats to the nation's environment: acid rain, urban air\npollution, and toxic air emissions.\n-- Acid Rain: Sulfur dioxide emissions that cause acid\nrain will be cut in half, by ten million tons, and\nnitrogen oxide levels cut by two million tons -- by the\nend of this century. Companies will be allowed to\ntrade credits among themselves for reductions they\nmake, so that they can decide how to bring aggregate\nemissions down as cost-effectively as possible.\n--\nUrban Air Pollution: By employing a mix of federal\nmeasures and state initiatives, this legislation will\nsharply cut air pollution in our cities. The federal\nmeasures alone will cut hydrocarbon emissions -- which\ncontribute to urban ozone -- virtually in half.\n16\nCurrently, 81 cities don't meet Federal air\nquality standards. This legislation will bring clean\nair to all but 25 cities by 1995 -- and within 20\nyears, even to Los Angeles, Houston and New York.\nIn the nine urban areas with the greatest smog\nproblems, smog will be cut through alternative fuels\nand clean-fueled vehicles. The President is calling\nfor the phased in introduction of a half a million\nclean-fueled vehicles in 1995, building up to a million\nin 1997, through 2007.\nTo the maximum extent feasible, automobile and\nfuel companies will be allowed to trade reduction\ncredits among themselves.\n-- Toxic Air Emissions: All categories of airborne toxic\nchemicals should be cut by 75 percent by the year 2000.\nIn its first phase, this initiative should eliminate\nabout three-quarters of the needless deaths from cancer\nthat are suspected to have been caused by toxic\nindustrial air emissions.\nUntil now, because of an unworkable law, the EPA\nhas been able to regulate only seven of the 280 known\nair toxics. These reforms will allow EPA to do its job\nbetter, and will apply the most advanced industrial\ntechnology available to control these airborne poisons.\nThe legislation promises certifiable progress in\n17\nregulating sources of toxic air emissions on a set\nschedule.\nAlaskan oil spill: A Cabinet-level team was sent to assess\nthe Alaskan oil spill, and a joint federal-state resource\nrecovery team was convened. The National Transportation\nSafety Board is investigating the accident itself. Exxon\nhas accepted responsibility for paying for the cleanup, and\nfor employing local civilian personnel necessary to control\nfurther damage. EPA Administrator Reilly is coordinating the\nlong-range planning to restore the environment of Prince\nWilliam Sound, and the President has ordered a review of\nexisting contingency plans for accidents such as this.\n-- The President has set up a special task force to\naddress environmental concerns about oil and gas\ndrilling off the coasts of California and Florida.\n--\nThe Administration transmitted to the Congress a\ncomprehensive oil spill liability bill, to XXX (call\nTransoportation)\nCleaning up hazardous wastes: The President announced he\nwill be seeking new legislation to give the United States\nGovernment authority to ban all exports of hazardous waste\nexcept where an agreement exists with the receiving country\nproviding for the safe handling and management of those\nwastes.\n18\nAlso, Secretary of Energy Watkins has put forth a plan of\naction to identify and prioritize clean up of defense and\ncivilian radioactive waste.\nSuperfund: The President is reinvigorating the Superfund\nhazardous waste clean-up program by directing EPA to take a\nnumber of actions, including more aggressive action to force\nprivate parties to clean up sites, stepped-up cost recovery,\nand better use of existing emergency cleanup authorities.\nEPA is also now finishing a priority review of Superfund to\nimprove its operation.\nOzone depletion: The President has called for a total\nworldwide phaseout of CFCs by the year 2000, provided safe\nsubstitutes are available, in order to prevent further\ndamage to the earth's protective ozone layer.\nClean water and coastlines: The EPA has started a tracking\nsystem for medical wastes and the Justice Department has\nstarted a task force to prosecute these abuses -- the first\nstep in a comprehensive program to help keep our beaches\nclean. The President is committed to end ocean dumping of\nsewage sludge by 1991.\n19\nWetlands: The President is committed to \"no net loss of\nwetlands\" and is directing his agencies to work toward that\ngoal. He has also proposed $206 million in his budget to\nexpand our parks and wildlife refuges.\nCOMBATTING VIOLENT CRIME\nThe President is working to strengthen the nation's criminal\njustice system and the Federal, state, and local law enforcement\npartnership.\nFour principles underlie the goals of our criminal justice\nsystem and the means for accomplishing them: First, to protect\ncitizens and their property; to hold those who commit violent\ncrimes accountable for their actions; to have as the objective of\nour criminal justice system the swift and certain apprehension,\nprosecution and incarceration of those who break the law; and\nfinally, to ensure a sustained, cooperative effort by Federal,\nState and local law enforcement authorities.\nACTION BY THE ADMINISTRATION:\nOn May 15, 1989, President Bush transmitted to Congress The\nComprehensive Crime Control Act of 1989 to combat violent\ncrime. Elements of the legislation include:\n20\n-- Strengthening Current Laws: The President is calling\non Congress to double the mandatory minimum penalties\n-- from five years to ten years in Federal prison --\nfor the use of semi-automatic weapons in violent crimes\nor drug felonies.\nIn addition, the Attorney General has been\ndirected to advise America's prosecutors to end plea\nbargaining for violent Federal firearms offenses.\nPresident Bush called on Congress to enact the\nsteps necessary to implement the death penalty for the\nmost serious Federal crimes, and urged state Governors\nto match these Federal initiatives -- new mandatory\nsentencing, tougher rules on plea bargaining, and\nimplementing the death penalty -- in the States.\n:\nControlling Certain Semi-Automatic Weapons: The\nPresident also announced that the Administration has\nmade permanent the temporary suspension on the\nimportation of any semi-automatic weapons which fail to\nmeet the criteria specified in the Gun Control Act of\n1968; he also called for the closing of loopholes which\nallow access to such guns by certain classes of\ncriminals. The President introduced legislation\nprohibiting the importation, manufacture, sale or\ntransfer of gun magazines of more than 15 rounds.\n--\nAugmenting Enforcement: The President has directed the\nAttorney General and the Treasury Secretary, working\n21\ntogether with state and local authorities, to launch a\ncomprehensive, coordinated offensive against America's\nmost violent criminals.\nPresident Bush requested funding for hiring 825\nnew Federal agents and staff -- 375 at the Bureau of\nAlcohol, Tobacco and Firearms; 300 at the FBI; and 150\nDeputy U.S. Marshals. This offensive, including State\nand local enforcement authorities, will target violent\ncriminals and repeat offenders.\n-- Enhancing Prosecution: The President proposed\nincreased funds for the U.S. Attorneys Offices to\nsupport 1,600 new prosecutors and staff, and increased\nfunds for the Justice Department Criminal Division to\nsupport 168 new positions, to handle drug cases,\nweapons offenses and other priority matters.\n-- Expanding Prison Capacity: The President proposed an\nadditional $1 billion for Federal prison construction,\nbringing the total FY 1990 budget to over $1.5 billion.\nThis will add 24,000 new Federal prison beds to the\ncurrent 31,000 beds, an increase of nearly 80%.\nFIGHTING DRUG ABUSE\nWe have begun a new war on drugs in this country. The\nPresident believes a four-pronged approach is key: education,\nrehabilitation, interdiction and enforcement. The policy of\n22\nthis Administration is \"zero tolerance.\" No amount of illegal\ndrug use is acceptable. This means dealing with both supply and\ndemand.\nACTION BY THE ADMINISTRATION:\nBudget: The Administration is requesting $6 billion in\nfunding for FY 1990 to fight the drug war, increasing\noutlays by nearly $1 billion for drug education, treatment\nand enforcement.\nEducation: The Administration is requesting nearly $1.1\nbillion for education and prevention efforts. This is a 16\npercent increase over 1989, and includes funding for ongoing\nprograms and new initiatives.\nRehabilitation: Funding for drug abuse treatment will be\nincreased 18 percent. The Administration is proposing over\n$700 million to expand the nation's capacity to provide\ntreatment, particularly to the indigent, disadvantaged,\nyouth, and expectant mothers.\nInterdiction and enforcement: The Administration is\nproposing over $4.1 billion for law enforcement programs in\n1990, a 10 percent increase over 1989. This constitutes\nabout 70 percent of President Bush's proposed drug budget.\n23\nSubstantial increases are requested in funding to strengthen\ninspection, interdiction, intelligence efforts and crop\neradication programs, such as Operation Polar Cap, a\nfederally led effort which broke up a $1.2 billion drug\nmoney-laundering operation. The President strongly supports\nthe death penalty for drug kingpins who commit drug-related\nmurders, and will appoint judges who will strongly enforce\nthe drug penalty laws.\nPublic housing: The Bush Administration is working to make\npublic housing drug free, to protect the rights of the vast\nmajority of decent, law-abiding public housing residents.\nThe Department of Housing and Urban Development has acted:\n-- To modify its lease and grievance procedures to\nfacilitate eviction of those involved in drug related\ncriminal activity;\n-- To make drug use and trafficking a lease violation\nsubject to eviction proceedings;\n-- To target federal assistance to anti-drug security\nmeasures;\n--\nTo revoke federal housing subsidies from those dealing\nin drugs;\n-- To involve the private and voluntary sectors in efforts\nto rid public housing of drugs and give residents,\nespecially young people, a stake in their communities\nand their futures.\n24\nIn addition, the Office of National Drug Control Policy has\nresponded to the drug emergency in the District of Columbia\nby expanding the Metropolitan Area Task Force, working for\nmore prisons, providing FBI support in enforcement, and\nproviding the assistance of the National Institute on Drug\nAbuse to local treatment efforts. The Department of\nEducation will provide the District with 50 percent more\nfunds for drug prevention programs in city schools. The\nDepartment of Labor will provide support for employee\nassistance programs and work with the business community to\nincrease job training for youth.\nWORKING FOR A KINDER, GENTLER AMERICA\nCHILD CARE\nThe changing nature of American society heightens the need\nfor quality, affordable, accessible child care. President Bush\nwants to put choice in the hands of parents so that they -- not\ngovernment -- have the power to select the best and safest\nenvironment for their children.\n25\nACTION BY THE ADMINISTRATION:\nChild care: The President has transmitted to the Congress a\nchild care package, the Working Family Child Care Assistance\nAct of 1989 which:\n--\nProvides a new refundable child care tax credit of up\nto $1000 per child under four, for low and moderate\nincome working families.\n--\nMakes the existing Child and Dependent Care Tax Credit\nrefundable.\n:\nDoes not discriminate against religious- and family-\nbased child care.\nThe President has directed Secretary of Labor Dole to study\nthe market for liability insurance to determine if liability\nissues impair child care.\nHead Start: The President has also transmitted legislation\nto the Congress which would increase the FY 1990\nauthorization for Head Start by $250 million; this will pay\nfor enrollment of up to 95,000 more four-year-olds in the\nprogram.\n26\nNATIONAL SERVICE\nThe President's strategy for overcoming the disintegration\nof communities across America -- not through a federal government\nprogram, but a nationwide service movement -- has three facets:\nFirst, to issue a call to action; second, to identify, enlarge\nand recreate what is working; and third, to discover and\nencourage new leaders.\nACTION BY THE ADMINISTRATION:\nThe Call to Action:\n:\nPresident Bush called on all Americans and all American\ninstitutions, large and small, to make service of\ncentral value in their daily life and work;\n--\nAll heads of business and professional firms to include\ncommunity service among the factors considered in\nmaking hiring, compensation and promotion decisions;\n:\nNewspapers, magazines, radio and television stations,\ncable systems, and other media institutions to identify\nservice opportunities, spotlight successful service\ninitiatives and profile outstanding community leaders\nregularly;\n--\nAll state and local education boards to uphold the\nvalue of service and to encourage students, faculty and\npersonnel to serve others;\n27\n--\nCollege and university presidents to recognize the\nvalue of community service in considering applicants,\nand to encourage and uphold the value of community\nservice;\n--\nand not-for-profit service organizations to build the\ncapacity to absorb increasing numbers of volunteers in\npurposeful roles.\nIdentifying, Enlarging, and Recreating What is Working: The\nPresident announced the formation of a foundation called the\nPoints of Light Initiative, of which he will serve as\nHonorary Chairman. Formed to identify and build upon what\nis working, the Foundation will be a magnet for the best\nideas and brightest programs in community service. The\nAdministration will ask Congress for $25 million annually to\nsupport this Initiative, which will, in turn, seek matching\nfunds from the private sector. The President has also\nencouraged all governors and mayors nationwide to join the\nmovement by forming State and local Points of Light working\ngroups composed of outstanding leaders.\n-- Through a Foundation initiative called the ServNet\nProject, professional firms, corporations, unions,\nschools, religious, civic and not-for-profit groups\nwill be asked to donate the services of some of their\nmost talented and promising people for a period of\ntime. Peer-to-peer working groups will be formed to\n28\nbring examples of successful initiatives and providing\ntraining, technical assistance and other support to\nenable other institutions to devise similar\ninitiatives.\n--\nAnother Foundation initiative, the ServLink Project,\nwill help improve existing methods of matching would-be\nvolunteers with purposeful service opportunities.\nServLink will stimulate the development through private\nsector resources of \"technology links\" between those\nwho wish to serve and those needing service in the\ninquirer's own community.\n--\nThe Foundation will also recognize successful community\ninitiatives and outstanding leaders through two new\nPresidential Awards:\n-- The National Service Youth Leadership Awards will\nbe given each year to individuals.\n-- The President's Build a Community Awards will\nhonor those people and institutions who have\nworked together to rebuild families or to\nrevitalize communities.\n29\nWELFARE REFORM\nThe Administration has developed a major new education and\njob training program to help recipients of Aid to Families with\nDependent Children move off welfare and become economically self-\nsufficient.\nACTION BY THE ADMINISTRATION:\nWelfare reform: The Administration issued proposed rules on\nApril 18 to implement the major provisions of the Family\nSupport Act of 1988. The proposed rules are designed to:\n:\nTarget job training assistance to those who are most\nlikely to benefit and who are most at risk for long-\nterm welfare dependency.\n:\nProvide maximum level of flexibility to AFDC parents in\nobtaining the type of child care that best suits their\nneeds, consistent with the Administration's legislative\nproposals on child care.\nJOBS Program: The Administration is proposing to spend $3.3\nbillion over the next five years implementing the JOBS\nprogram. The changes will pay benefits in the future by\nreducing the number of individuals on welfare. It is\nestimated that 138,000 families will be able to leave\n30\nwelfare rolls over the next five years as a result of this\nprogram.\nEXPANSION OF MEDICAID\nThe Administration is committed to health care for the\ndisadvantaged, calling for full funding of Medicaid, $37.6\nbillion for FY 1990, an increase of $3.3 billion, or 9.6 percent\nover the FY 1989 level.\nACTION BY THE ADMINISTRATION:\nExpanding Medicaid: On April 18, the Administration\nforwarded to Congress proposed legislation to make federal\nprograms better serve pregnant women, infants and children.\nThe legislation would expand the population Medicaid serves,\nmaking Medicaid available to 1.9 million more women when\nthey became pregnant. The legislation would:\n-- Increase by 374,000 the number of pregnant women and\nchildren eligible for Medicaid.\n-- Foster greater participation in Medicaid by eligible\npregnant women by providing services to pregnant women\nwho are presumed eligible for Medicaid before a formal\neligibility determination is made; and by requiring\nStates to operate outreach programs in areas of high\ninfant mortality.\n31\n--\nEntitle all children under age 6 who are receiving Food\nStamps to Medicaid coverage for immunizations.\n-- Make the Federal match rate for State administration\nexpenses a uniform 50 percent by gradually reducing\nspecial administrative match rates ranging from 75 to\n100 percent. The savings that would result would allow\nthe legislative eligibility changes proposed by the\nPresident to be implemented within the current\nprogram's spending level.\nHOUSING/HOMELESSNESS\nPresident Bush has taken a number of steps to create an\n\"opportunity society\" of jobs, growth, housing and hope for\nAmericans in need of a helping hand.\nACTION BY THE ADMINISTRATION:\nHomelessness: ((In his FY 1990 budget)) 1 the President has\nproposed to provide over $1 billion in federal resources to\nhelp end homelessness and pave the way to jobs, permanent\nhousing, health care and human dignity. President Bush's\nproposal calls for fully funding the McKinney Homeless\nAssistance Act and for a new $50 million matching grant\n32\nprogram to promote public/private partnerships to assist\nhomeless families and the mentally ill.\nEnterprise zones: President Bush has called for enactment of\nenterprise zone legislation, to give urban and rural areas\nthe opportunity for jobs and hope for the future. President\nBush asked Congress to enact labor and capital-based\nincentives to create jobs and entrepreneurial activity in\nour most distressed communities.\nAffordable housing: President Bush is committed to making\nhousing more affordable for low-income families, and to\nprovide homeownership opportunities to the disadvantaged and\nto young families. President Bush proposes to assist\n109,000 new families in need of low-income housing, and has\npledged to maintain assistance to those families already\nbeing helped. President Bush has also signalled his\ncommitment to helping poor residents in public housing to\nbecome homeowners through resident management and ownership\nprograms.\nETHICS AND CIVIL RIGHTS\nHigh ethical standards and civil rights for all Americans\nare central to this Administration, and we will enforce them --\n33\nstrictly, comprehensively, fairly, and to the letter and spirit\nof the law.\nACTION BY THE ADMINISTRATION:\nCampaign Finance Reform: The President's comprehensive\ncampaign finance proposal is designed to lessen the power of\nspecial economic interests and restore competition to\nAmerican Congressional elections. The package, which seeks\nto increase the role of individuals and political parties in\nthe electoral process, has four facets:\n-- Eliminating political action committees (PACs)\nsupported by corporations, unions or trade\nassociations, and prohibiting such entities from paying\nfor the overhead or administrative costs of any\nindependent PAC.\n--\nStrengthening political parties by increasing the\namounts they can spend on behalf of congressional\ncandidates. This source of funds would permit\nlegislators to spend less time fundraising, would\nensure that challengers have greater resources with\nwhich to challenge incumbents, and would further limit\nthe role of special economic interests in elections.\n--\nAddressing the problem of the \"permanent Congress\" by\nreforms designed to reduce the unwarranted advantages\nof incumbency. Specifically, the proposals would\n34\nprohibit the personal use of excess campaign funds,\ndrastically reduce Congressional mailings under the\nfrank, ban the rollover of campaign funds from one\nelection cycle to the next, and legislate fair neutral\ncriteria for the redistricting of Congressional and\nlegislative lines that will follow the 1990 census.\n-- Fully disclosing all soft money spent by the political\nparties and all labor unions, corporations and trade\nassociations to influence a federal election.\nEthics: The President issued an Executive Order creating\nthe President's Commission on Federal Ethics Law Reform. On\nMarch 9, the Commission filed its report and its\nrecommendations to the President. Legislation was sent\nApril 12th to the Congress, and the President issued an\nExecutive Order announcing ethical principles for the\nconduct of executive branch employees. The President's\nproposals include:\n-- A ban on outside earned income for non-career\nPresidential appointees in the executive branch,\nincluding all employees in the immediate White House\nOffice.\n-- Expanded financial disclosure for all three branches of\ngovernment.\n35\n-- Prohibition of the conversion of political\ncontributions for personal or office use.\n-- Deferral of tax liability when an individual is\nrequired by his or her agency to divest assets in order\nto avoid conflicts of interest.\n-- Strengthened rules against abusing the revolving door\nfor private gain at the expense of the public trust.\nThese rules also apply to the legislative branch.\n-- A 25 percent pay raise for federal judges was proposed\nin separate legislation submitted April 12, while the\nethics reform legislation restricts their acceptance of\nhonoraria. President Bush believes that honoraria for\nMembers of Congress should be banned; however, the\nPresident will not formalize that proposal until after\nhe consults with Congress on that issue and their pay\nraise. He will include in that discussion the question\nof a pay increase for certain executive branch\npositions.\n-- The extension of the Independent Counsel statute to\ncover the Congress.\n-- The extension of the federal statute that prohibits\nemployees from taking actions that enhance their own\nfinancial interest to cover legislative and judicial\nbranch employees.\n36\n-- The establishment of an independent ethics office for\nthe Congress, to be headed by a clearly nonpartisan\nofficial, confirmed by both houses.\n-- The application of the existing one-year post-\nemployment \"cooling-off\" period for senior executive-\nbranch employees to the legislative and judicial\nbranches.\nWhistleblower protection: The President supports public\nservants who revere the trust placed in them by the American\npeople. On April 10, the President signed S. 20, the\n\"Whistleblower Protection Act of 1989.\" This law will\nstrengthen the protections and procedural rights available\nto those federal employees who report misdeeds and\nmismanagement.\n-- This new law will enhance the authority of the Office\nof Special Counsel, and whistleblowers will also now be\nallowed to take their cases to the Merit Systems\nProtection Board.\n-- The statute alters the legal burdens of proof, making\nit easier for employees to be vindicated when they are\nwrongfully penalized by their supervisors for\nwhistleblowing activities.\n37\no\nCivil rights: The Administration has taken a number of\nactions to protect the civil rights of all Americans,\nincluding several court actions in key civil rights cases.\n-- On March 8, the Department of Justice endorsed the\nobjectives of the Hate Crimes Bill and voiced no\nopposition to the bill's enactment. The Hate Crimes\nBill provides for the collection of data about crimes\nmotivated by race, religion, ethnicity or sexual\norientation.\n--\nOn March 13, Attorney General Thornburgh announced the\nfiling of Federal housing discrimination lawsuits\nseeking monetary damages and civil penalties under the\nexpanded enforcement authority of the Fair Housing\nAmendments Act of 1988.\n# # #\nDocument No. 05691955\nWHITE HOUSE STAFFING MEMORANDUM\nDATE: 7/25/89\nACTION/CONCURRENCE/COMMENT DUE BY:\n12:00 NOON, 7/26/89\nSUBJECT: SIX MONTHS OF THE BUSH ADMINISTRATION\nACTION FYI\nACTION FYI\nVICE PRESIDENT\nMCCLURE\nSUNUNU\nNEWMAN\nSCOWCROFT\nPORTER\nDARMAN\nSTUDDERT\nBATES\nUNTERMEYER\nBREEDEN\nBennett\nCARD\nBoskin\nCICCONI\nPetersmeyer\nDEMAREST\nRogers\nFITZWATER\nWinston\nGRAY\nPintarton\nHAGIN\nREMARKS:\nPlease provide your comments/recommendations directly to Chriss Winston\n(Rm. 122, Ext. 2930) with an info copy to my office no later than\n12:00 NOON, WEDNESDAY, JULY 26, 1989. Please note that TWO DOCUMENTS\nare attached. Thank you.\nRESPONSE:\nName\nJUL26\n68\nJames W. Cicconi\nAssistant to the President\nand Deputy to the Chief of Staff\nExt 2702\nDocument No. 05691955\naction: CC: Brian JT&RS Madigan\nWHITE HOUSE STAFFING MEMORANDUM\nDATE: 7/25/89\nACTION/CONCURRENCE/COMMENT DUE BY: 12:00 NOON, 7/26/89\nSUBJECT: SIX MONTHS OF THE BUSH ADMINISTRATION\nACTION FYI\nACTION FYI\nVICE PRESIDENT\nMCCLURE\nSUNUNU\nNEWMAN\nSCOWCROFT\nPORTER\nDARMAN\nSTUDDERT\nBATES\nUNTERMEYER\nBREEDEN\nBennett\nCARD\nBoskin\nCICCONI\nPetersmeyer\nDEMAREST\nRogers\nFITZWATER\nWinston\nGRAY\nPintarton\nE8\nHAGIN\nREMARKS:\nAll\nPlease provide your comments/recommendations directly to Chriss Winston\n(Rm. 122, Ext. 2930) with an info copy to my office no later than\n12:00 NOON, WEDNESDAY, JULY 26, 1989. Please note that TWO DOCUMENTS\nare attached. Thank you.\nRESPONSE:\nPlease noteall items circled in blue pen; ignue other\ncomments. We will provide jerral data updates fmound.\nMBrler\nJames W. Cicconi\nAssistant to the President\nand Deputy to the Chief of Staff\nExt. 2702\n1\n( (Grant))\nJuly 21, 1989\nDraft two\nA:sixmonth\nBUILDING A BETTER AMERICA\nSIX MONTHS OF THE BUSH ADMINISTRATION\nSUMMARY\nAs the Bush Administration passes the six-month mark,\nAmericans know that the President has set the agenda on a number\nof fronts domestically -- from the environment and education to\nthe fight against drugs and crime. The economy is strong, with\nthe current economic expansion continuing to set new records.\nMeanwhile, America is standing tall in the international arena,\nafter President Bush's leadership at two multilateral summits\npaved the way for greater understanding among the allies and\nimproved relations with the Soviet Union and the Eastern Bloc\nnations.\nKEEPING THE ECONOMY STRONG\nRecord expansion: During the current economic expansion --\n\\\nnow in its 79th month as of June -- nearly 20 million jobs\nhave been created and the unemployment rate has fallen to\nlevels not seen in 15 years. Income levels continue to set\ngrowth iN\nrecords, and industrial output is nearly double that of\nthe statement ON pg.2 oF the detisiled\ndocument properly refers to growth mother Than levels.\nBE\nTHIS SHOULIKE ED\n2\nEurope. Consumer price inflation has remained under 5\nTrue ON Q4/Q4 and Dec/Dec bases\npercent for the past 7 years:\nFAlse ON year/year bAsis (ONly 6, years),\nHe Administration Forecasts that IN Plation For\nbut this is Not The usual basis,\n1989 Also will be pround that Figure pid That\nNOTE: INflation go FAr This year\nINFlation will recede IN coving years,\nis 5.9%\nBudget agreement: The President has put forth a budget which\nrestrains overall growth of spending and meets the Gramm-\nRudman-Hollings targets -- with no new taxes in fiscal year\n1990. The President and Congress announced on April 14 a\nbudget plan to reduce the estimated fiscal year 1990 deficit\nby about $64 billion below fiscal year 1989. $49 billion reduction\ntrue For April 14, But 7/18/89 Midsession review has A\nunder \"President Policy\"\nVersions of\nSavings and Loans: The Administration's proposal to solve\nwere\nthe savings and loan crisis was passed by the House and\nDiFFerent versions were passed\nSenate and is currently in conference.\nAnd that's why it's in\nconference,\nThird World debt: The Administration has taken the lead in\nfinding a way to reduce the debt burden of developing\ncountries. With the Administration's encouragement, the IMF\nand World Bank have set aside funds to aid debt reduction.\nCapital gains tax cut: The President has sent to the\nthat\nCongress a proposal which which would re-establish a capital gains\ndifferential will encourage capital formation, saving, and\njob formation.\nMinimum wage: The President, by vetoing the across-the-board\nincrease in the minimum wage proposed by Congress, preserved\n3\njob opportunities for the disadvantaged and blunted the\nadverse economic impact such a move would have had.\nInternational Trade: The Bush Administration successfully\nbroke a stalemate in international trade talks and advanced\nits proposal to correct and prevent trade distortions in\nagriculture. It is engaged in bilateral trade talks with\nimportant trading partners to encourage them to open their\nmarkets to our exports.\nSEIZING INTERNATIONAL OPPORTUNITIES FOR PEACE\n\"Europe Whole and Free\": In a series of major speeches in\nApril and May, the President outlined a vision of a new\nEurope -- secure, prosperous, whole and free -- vindicating\nfour decades of Western policies.\nPoland and Hungary: The President signalled his strong\nsupport for the people of Hungary and Poland as they move\ntoward more democratic reforms -- by visiting those nations\nand offering political and moral support as well as economic\nand trade incentives.\nEconomic Summit: The unity of the industrial democracies was\ndemonstrated at the Paris Economic Summit, as President Bush\n4\ntook the lead in encouraging our allies to support Polish\nand Hungarian economic reforms.\n\"Beyond Containment\": The President has responded to great\nchanges in the Soviet Union with his policy to move \"beyond\ncontainment\" by integrating the Soviet Union into the world\norder.\nArms Control/NATO Summit: In arms control, the pace of\nnegotiations with the Soviet Union has accelerated, with new\nAmerican initiatives on Conventional Forces in Europe (which\nthe President unveiled at the NATO Summit), on banning\nchemical weapons, and on strategic arms reduction.\nSoviet Relations: The US-Soviet dialogue on conflicts in\nregions of the Third World has resumed intensively, and a\nUS-Soviet dialogue has begun on a new range of global\nproblems which require global cooperation, such as\nterrorism, the environment, and narcotics.\nChina: In response to the suppression of the democratic\nmovement in China, the President signalled that we cannot\ncondone repression while he worked to preserve the basic\nelements of a strategically important relationship.\n5\nCentral American accord: The President and Congressional\nleaders agreed on March 24 on a bipartisan strategy for\npeace and democracy in Central America.\nINVESTING IN OUR FUTURE\nEducation: The President proposed and sent to the Congress a\ncomprehensive education package, The Educational Excellence\nAct of 1989, which includes seven initiatives on merit and\nmagnet schools, alternative certification of teachers,\nexcellence awards for teachers, emergency grants to help\nurban schools to fight drugs, new funding for endowments at\nHistorically Black Colleges, and a National Science Scholars\nprogram.\nwring not proplem it does Yuto of\nNatural Gas Deregulation: On July 26, the President signed\ninto law the Wellhead Decontrol Act of 1989, which ends all\nthe wellhead,\nremaining price controls on natural gas, This will phase\nout all federal price controls on natural gas.\nClean Air Act revisions: On July 21, President Bush\ntransmitted to the Congress the first revisions to the Clean\nAir Act since 1977. His legislation is designed to\n6\ndrastically reduce three major threats to the nation's\nenvironment: acid rain, urban air pollution, and toxic air\nemissions.\nHasardous waste: The President announced he will be seeking\nnew legislation to ban all exports of hazardous waste except\nwhere an agreement already exists with the receiving country\nto provide for its safe handling.\nOzone depletion: The President has called for a total\nworldwide phaseout of CFCs by the year 2000, provided safe\nsubstitutes are available, in order to prevent further\ndamage to the earth's protective ozone layer.\nClean water: The EPA has started a tracking system for\nmedical wastes and the Justice Department has started a task\nforce to prosecute these abuses -- the first step in a\ncomprehensive program to help keep our beaches clean. The\nPresident is committed to end ocean dumping of sewage sludge\nby 1991.\nWetlands: The President is committed to \"no net loss of\nwetlands\" and is directing his agencies to work toward that\ngoal. He has also proposed $206 million in his budget to\nexpand our parks and wildlife refuges.\n7\nCombatting Violent Crime: President Bush transmitted to\nCongress The Comprehensive Crime Control Act of 1989 to\ncombat violent crime. Measures will augment enforcement and\nprosecution, strengthen current law, control certain semi-\nautomatic weapons, and expand prison capacity.\nFighting Drug Abuse: The Administration is requesting $6\nbillion in funding for FY 1990 to fight the drug war,\nincreasing outlays by nearly $1 billion for drug education,\ntreatment and enforcement.\nDrug Czar: The Office of National Drug Control Policy has\nresponded to the drug emergency in the District of Columbia\nby expanding the Metropolitan Area Task Force, working for\nmore prisons, providing support in enforcement, and\nproviding assistance to local treatment efforts.\nSpace: The President announced a three step commitment to\nestablish America's preeminence in space -- Space Station\nFreedom, a permanent presence on the Moon, and a manned\nmission to Mars.\nPublic Housing: The Bush Administration is working to make\npublic housing drug free, to protect the rights of the vast\nmajority of decent, law-abiding public housing residents.\n8\nWORKING FOR A KINDER, GENTLER AMERICA\nChild Care: The President has transmitted to the Congress a\nchild care package, the Working Family Child Care Assistance\nAct of 1989 which provides a new refundable child care tax\ncredit of up to $1000 per child under four, for low and\nmoderate income working families. This legislation will\nmake the existing Child and Dependent Care Tax Credit\nrefundable, and does not discriminate against religious- and\nfamily-based child care.\nHead Start: The President has also transmitted legislation\nto the Congress which would increase the FY 1990\nauthorization for Head Start by $250 million; this will pay\nfor enrollment of up to 95,000 more four-year-olds in the\nprogram.\nNational Service: The President spearheaded a movement to\nencourage national service, and announced the formation of a\nfoundation called the Points of Light Initiative to\nidentify, enlarge and recreate those community service\ninitiatives which are working.\nWelfare Reform: The Administration issued proposed rules on\nApril 18 to implement the major provisions of the Family\n9\nSupport Act of 1988, as a step toward welfare reform. The\nAdministration is proposing to spend $3.3 billion over the\nnext five years implementing the JOBS program. The changes\nwill help reduce the number of individuals on welfare.\nMedicaid: On April 18, the Administration forwarded to\nCongress proposed legislation to make federal Medicaid\nprograms better serve pregnant women, infants and children.\nHomelessness: President Bush has called for fully funding\nthe McKinney Homeless Assistance Act and for a new $50\nmillion matching grant program to promote public/private\npartnerships to assist homeless families and the mentally\nill.\nEnterprise Zones: President Bush asked Congress to enact\nlabor and capital-based incentives -- through urban\nenterprise zones -- to create jobs and entrepreneurial\nactivity in our most distressed communities.\nCampaign Finance Reform: The President's comprehensive\ncampaign finance proposal is designed to lessen the power of\nspecial economic interests and restore competition to\nAmerican Congressional elections.\n10\nO\nEthics: President Bush sent comprehensive ethics legislation\nto the Congress on April 12th, and he issued an Executive\nOrder announcing ethical principles for the conduct of\nexecutive branch employees.\nWhistleblower Protection: On April 10, the President signed\nS. 20, the \"Whistleblower Protection Act of 1989.\" This law\nwill strengthen the protections and procedural rights\navailable to those federal employees who report misdeeds and\nmismanagement.\nCivil Rights: The Administration has taken a number of\nactions to protect the civil rights of all Americans,\nincluding several court actions in key civil rights cases.\n###\nBUILDING A BETTER AMERICA\nSIX MONTHS OF THE BUSH ADMINISTRATION\nKEEPING THE ECONOMY STRONG\nMaintaining the current expansion with low inflation is the\nkey to improving standards of living, increasing job\nopportunities for all Americans, and increasing investment in\nproductive capacity. Economic performance during this expansion\nhas been very good, and the policies proposed by the Bush\nAdministration are designed to preserve this strong record.\nRecord peacetime expansion: The current expansion reached 79\nmonths in June.\nJob creation: Nearly 20 million new jobs have been created\nduring this expansion, and the unemployment rate fell to\nlevels not seen in 15 years. During this decade, America\nhas created more new jobs than Japan and the nations of\nWestern Europe combined.\nRecord income: Real per capita disposable personal income --\nThis CAN\nbe updated\nthe Average person\npersonal income after taxes and inflation -- has risen 19\nAFter get For GNP Q2 The we\npercent during this expansion. Real median family income --\nFigures\nthe level of income after inflation which splits the family\nAtev this\nof the family exectly in\nweek,\nThe middle\n2\nincome distribution in half -- set a new record in 1987, the\nlast year for which data are available.\nThe change\nO\nIndustrial output: During this expansion, American\nis that ON Necessary A both compA Figures suble so Q1. are bosis\n40\n(through QI)\nindustrial output has grown almost 41 percent compared with\nHowever, i.e will ,Through be This\nFigures\nqualiable week,\noverall economic growth of 29 percent. This is almost\nlater CAN\ndouble Europe's growth rate in industrial output.\nspdate we this.\nHigher national saving and investment: During the first\nFigures For\nNiNe\neight months of fiscal year 1989, the Federal Government\nJune\nthe Ninth\nbudget deficit is less than during the same period in the\nmonth\nAre NOW\nprevious fiscal year. Partly due to the discipline of GRH,\nAurilable,\nthe Federal deficit has declined from 5.4 percent of GNP in\nfiscal year 1985 to about 2.9 percent this fiscal year. The\npersonal saving rate has risen to 5.4 percent in the first\nThese\nrequirested\nquarter of 1989 from its recent low of 2.2 percent in the\nlufer CPN be this week.\nsecond quarter of 1987. Business fixed investment as a\npercent of real GNP has risen from a recent low of 11.1\npercent in the first quarter of 1987 to 12.3 percent in the\nfirst quarter of 1989.\nInflation under control: Consumer price inflation has\nsee COMMENT ON pg\nAnd the Administ retion expects such A Figure For 1989 AS A whole,\nremained under 5 percent for the past 7 years, and the\nMoreover,\n(1989: HI\nis 5.9%)\nrecent slowing in economic growth to a sustainable rate will\nlessen price pressures in the near future. The\n3\nAdministration and the Federal Reserve share the goal of\nultimately achieving price stability.\nACTION BY THE ADMINISTRATION:\nPresenting a budget: The President put forth a budget which\naddresses our fundamental obligations for the protection of\nnational security and support of the needy, while providing\nsufficient funds to advance high-priority initiatives. The\nPresident's budget restrains overall growth of spending and\nmeets the Gramm-Rudman-Hollings targets -- with no new taxes\nin fiscal year 1990.\nReaching a budget agreement with Congress: The President\nand Congress announced on April 14 a budget plan to reduce\nthe estimated fiscal year 1990 deficit by about $64 billion\nPresident's policy\"\nbelow fiscal year 1989. The deficit will be reduced to\n$99.2\nbelow the MAXIMUM specified\nFigure is\n$99.4 billion, as required by the Gramm-Rudman-Hollings law.\nG-R-H trought\n$99.26\niN recent years\nThis is the first budget agreement reached before the start\nis $100b.\nof the budget year and not framed in the context of crisis.\nVersions It\ndifferent\nSavings and Loan reform: The Administration's proposal to\nwere\nsolve the savings and loan crisis was passed by the House\nproposal passed. were\nand Senate and is currently in conference. The proposal\nincluded provisions to:\n4\n--\nAssure the financial integrity of deposit insurance by\nraising the annual premium rate for both commercial\nbanks and S&Ls.\nstitutions\n(5$Ls\nResolve the status of existing insolvent banks in an\nrather issue\norderly fashion.\nbanks)\n-- Improve supervisory control by bringing S&Ls up to the\nsame standards applied to commercial banks.\n--\nEnhance the enforcement of bank fraud provisions.\nSolution of the international debt problem: The\nAdministration has taken the lead in finding a way to reduce\nthe debt burden of developing countries. With the\nAdministration's encouragement, the IMF and World Bank have\nset aside funds to aid debt reduction in conjunction with\ntheir ongoing programs to promote investment, growth, and\nthe return of flight capital to these countries.\nCapital gains tax rate cut: The re-establishment of a\ncapital gains differential will encourage capital formation,\nsaving, and job formation. The President has sent to the\nCongress a proposal which includes:\n-- A 45 percent capital gains exclusion for qualified\ncapital gains, making the maximum capital gains tax\nrate 15 percent.\n--\nA phased-in increase in the qualifying holding period\nfrom one year to three years.\n5\n--\nAn exemption from the capital gains tax for families\nearning under $20,000.\nMinimum wage proposal: The President believes in keeping job\nopportunities available for youth and for those seeking to\nenter the economic mainstream. The across-the-board\nincrease in the minimum wage which was proposed by Congress\nwould have had an adverse economic impact and cut job\nopportunities drastically. Because of this, he vetoed the\nbill passed by Congress.\nInternational Trade: The Administration is forcefully\npromoting the opening of world markets. It successfully\nbroke a stalemate in international trade talks and advanced\nits proposal to correct and prevent trade distortions in\nagriculture. It is engaged in bilateral trade talks with\nimportant trading partners to encourage them to open their\nmarkets to our exports. Together these efforts should\ngreatly expand opportunities for U.S. exports.\nAgricultural initiatives: The Administration has announced\nadditional advance deficiency payments of 10 percent\navailable to producers of wheat, feed grains, rice and\nupland cotton. In addition, a top-level Working Group on\nRural Development was established by the President to focus\non an action-oriented agenda.\n6\nClean Air: The Administration transmitted to the Congress\non July 21 a Clean Air Act which will harness the power of\nthe marketplace in achieving the goals of the act in the\nmost cost-effective manner possible.\nSEIZING INTERNATIONAL OPPORTUNITIES FOR PEACE\nPresident Bush is committed to a strong American role of\nworld leadership and sees in present global trends an\nunprecedented opportunity for strengthening both world peace and\nthe cause of freedom. He has taken the initiative to seize that\nopportunity.\nACTION BY THE ADMINISTRATION:\n\"Europe Whole and Free\": In a series of major speeches in\nApril and May, the President outlined a vision of a new\nEurope -- secure, prosperous, whole and free -- vindicating\nfour decades of Western policies.\n--\nWestern Europe: As the European Community heads toward\na single market in 1992, and also develops its\npolitical institutions and a more coordinated approach\nto foreign policy, the President has pledged his\nsupport for close cooperation with the EC and its\nmember states. We see the resurgence of Western Europe\n7\nas a triumph of Western values and principles. We\nwelcome its success, confident that a mature\npartnership will serve mutual interests.\n--\nEastern Europe: As Poland and Hungary take\nunprecedented steps of reform, permitting first steps\ntoward pluralism, democracy, and market economic\npolicies, the United States has signaled its strong\nsupport. Offering political and moral support as well\nas economic incentives, the President proposed:\n--\nPoland: Following up on the program the President\nannounced earlier this year in Hamtramck, Michigan, he\ncalled for action to declare Poland a beneficiary\ncountry under the U.S. Generalized System of\nPreferences. OPIC will be authorized to operate in\nPoland, and the US is proposing a private business\nagreement that will promote contacts between the\nprivate sectors of both countries. The President will\nask Congress to provide a $100 million fund to help\ncapitalize the Polish private sector, and encourage the\nWorld Bank to move ahead with new loans to help Polish\nagriculture and industry. Finally, he will ask\nCongress for $15 million in a cooperative venture with\nPoland to help fight air and water pollution in Krakow.\nHe has encouraged our friends in the Paris Club to\nprovide more liberalized terms in rescheduling Polish\ndebt.\n8\n-- Hungary: The President will ask the Congress to\nauthorize a $25 million fund as a source of new capital\nto invigorate the Hungarian private sector. Pending\nthe passage of new emigration legislation in the\nHungarian Parliament, the President will inform\nCongress that Hungary has been released from the\nrestrictions of the Jackson-Vanik Amendments, allowing\nmore liberal access to the American market. The\nPresident also offered access to the Generalized System\nof Preferences. He called for OPIC to operate in\nHungary, and called for greater scientific, technical,\neducational and cultural exchanges between the US and\nHungary. The President said that the US will open an\nAmerican House in Budapest, and will seek to establish\nan International Environmental Center for Central and\nEastern Europe, in Budapest as well. Finally, he\nannounced that the Peace Corps would operate in Hungary\n-- the first time in a European country.\n-- The Economic Summit in Paris: The mission of the\nPresident's historic visit to Poland and Hungary in\nearly July, and of the President's successful effort at\nthe Paris Economic Summit was to promote concerted\nactions in areas of mutual concern among the industrial\ndemocracies. The unity of the industrial democracies\nwas demonstrated, as they dealt with a variety of\nissues from the economy to East-West strategies to\n9\nglobal environmental issues. Similarly, the solidarity\nof the democracies was demonstrated earlier at the NATO\nsummit, as the North Atlantic allies dealt with arms\ncontrol initiatives.\n--\nThroughout the trip, the President declared that we\nface a historic opportunity to lower the barriers that\nhave kept Europe divided. The Cold War began over\nEastern Europe, and if it is to end, it must end there\nas well.\nO\n\"Beyond Containment\": Seeing a historic process of change\nalso in the Soviet Union, the President has declared his\nintention to move beyond the successful policy of\ncontainment of Soviet power to a new policy whose goals is\nintegrating the Soviet Union into the world community as a\nconstructive partner. Constructive changes so far in Soviet\npolicies -- in human rights, economic reforms, and\nsettlement of some international conflicts -- need to be\nencouraged and broadened. The United States will be ready\nto respond to such further developments. Already:\n-- The US-Soviet dialogue on conflicts in regions of the\nThird World has resumed intensively, with regular\nmeetings at the level of Assistant Secretary of State.\n-- A US-Soviet dialogue has begun on a new range of global\nproblems which require global cooperation, such as\nterrorism, the environment, and narcotics.\n10\n--\nIn arms control, the pace of negotiations has\naccelerated, with new American initiatives on\nConventional Forces in Europe (which the President\nunveiled at the NATO Summit), on banning chemical\nweapons, and on strategic arms reduction.\nChina: In response to the tragic suppression of the\ndemocratic movement in China, the President ordered the\nsuspension of all government-to-government sales and\ncommercial exports of weapons, suspension of visits between\nUS and Chinese military leaders, sympathetic review of\nrequests by Chinese students in the United States to extend\ntheir stay, and review of other aspects of US-PRC bilateral\nrelations. The President's policy is to signal that we\ncannot condone repression, but also to preserve the basic\nelements of a relationship that has itself played a major\npart in China's recent policy of reform and openness as well\nas being of enormous strategic importance.\nBipartisan Accord on Central America: The President and\nCongressional leaders agreed on March 24 on a bipartisan\nstrategy for peace and democracy in Central America:\n-- Regional peace: The President and Congress agreed that\nthe region's democracies deserve our support, that\nNicaragua's subversion of its neighbors must end, and\n11\nthat Soviet support for violence and subversion in the\nhemisphere must also end.\n--\nHumanitarian aid: Congress agreed to support the\nAdministration's request for continued humanitarian\nassistance for the Nicaraguan Democratic Resistance at\ncurrent levels through the elections in Nicaragua\nscheduled for February 1990.\n--\nDemocracy: The Communist Sandinistas are being put to\nthe test next February -- to permit a real democratic\ncontest for political power, fulfilling the promises of\ndemocratic pluralism that they have made (and broken)\nso often before.\nMiddle East Peace Process: The Administration is supporting\nthe Middle East parties in efforts to launch a peace\nprocess. Our approach is based on the concept of\nPalestinian elections in the occupied territories, which we\nbelieve can be a step toward a comprehensive peace\nsettlement that assures Israel's security and the legitimate\npolitical rights of the Palestinians.\nInitiative on Third World Debt: The President's initiative\nto strengthen the international strategy on Third World debt\nhas already received broad support from both industrial and\ndeveloping countries. The approach is designed to promote\nsustained growth in developing countries by:\n12\n--\nEmphasizing sound market-oriented economic policies in\ndebtor countries, particularly measure to promote\ninvestment and repatriation of flight capital;\n--\nIncreasing the focus on debt and debt service reduction\nto complement new lending by commercial banks;\n-- Using resources from the World Bank and IMF to catalyze\nvoluntary debt and debt service reduction by the\ncommercial banks.\nGATT: In the Uruguay Round of GATT trade negotiations,\nprogress has been made toward a multilateral agreement\nreducing trade barriers to exports.\nBilateral Meetings: The President has met with a total of\nXXX foreign leaders while in office, including 18 bilateral\nmeetings during the trip to Emperor Hirohito's funeral, XX\nduring the NATO Summit, and XX on the trip to Poland,\nHungary, the Netherlands, and the Economic Summit.\nINVESTING IN OUR FUTURE\nEDUCATION\nThe President's actions to improve education are guided by\nfour key principles: that excellence and success in education\nshould be recognized and rewarded; that federal funding should be\ntargeted to those who need it most; that choice and flexibility -\n13\n- for educators, parents and students -- are important to\neducational reform and to achieving excellence; and finally, that\ngreater accountability is needed in the education system to\nassure that students are actually receiving the highest quality\neducation.\nACTION BY THE ADMINISTRATION:\nThe President proposed and sent to the Congress a\ncomprehensive education package, The Educational Excellence\nAct of 1989 which includes seven initiatives:\n-- The Presidential Merit Schools program -- to reward\nschools that have made substantial progress in raising\nstudents' educational achievement, creating a safe and\ndrug-free school environment, and reducing the drop-out\nrate.\n--\nA new Magnet Schools of Excellence program -- to\nsupport the establishment, expansion or enhancement of\nmagnet schools, increasing parental choice and\nimproving quality education.\n-- The Alternative Certification of Teachers and\nPrincipals program -- to assist States interested in\nbroadening the pool of talent from which to recruit\nteachers and principals.\n14\n--\nPresident's Awards for Excellence in Education -- to be\nawarded to public and private school teachers in every\nstate who meet the highest standards of excellence.\nDrug-free Schools Urban Emergency Grants -- to provide\nspecial assistance to selected urban school districts\nthat are disproportionately affected by drug\ntrafficking and abuse.\n-- A National Science Scholars program -- to provide\ncollege scholarships to high school seniors who have\nexcelled in the sciences and mathematics.\n:\nAdditional Funding Authorization for Endowment Matching\nGrants at Historically Black Colleges and Universities\nto strengthen HBCUs by building endowments, an\nespecially effective way to create financial strength\nand long-term security.\nTHE ENVIRONMENT\nPresident Bush, a long-time environmentalist, has taken\nstrong action to protect the environment. He is working\nshoulder-to-shoulder with Interior Secretary Lujan, Energy\nSecretary Watkins, and EPA Administrator Reilly on a number of\nfronts.\n15\nACTION BY THE ADMINISTRATION:\nNatural Gas Decontrol: On July 26, the President signed into\nlaw the Wellhead Decontrol Act of 1989, which ends all\nremaining price controls on natural gas. This will phase\nout all federal price controls on natural gas.\nClean Air legislation: President Bush transmitted to the\nCongress a sweeping program to ensure clean air for all\nAmericans. The President's plan, transmitted to Congress on\nJuly 21, 1989, calls for the first revisions to the Clean\nAir Act since 1977 and is designed to curb three major\nthreats to the nation's environment: acid rain, urban air\npollution, and toxic air emissions.\n-- Acid Rain: Sulfur dioxide emissions that cause acid\nrain will be cut in half, by ten million tons, and\nnitrogen oxide levels cut by two million tons -- by the\nend of this century. Companies will be allowed to\ntrade credits among themselves for reductions they\nmake, so that they can decide how to bring aggregate\nemissions down as cost-effectively as possible.\n-- Urban Air Pollution: By employing a mix of federal\nmeasures and state initiatives, this legislation will\nsharply cut air pollution in our cities. The federal\nmeasures alone will cut hydrocarbon emissions -- which\nby almost\ncontribute to urban ozone -- virtually in half.\n16\nCurrently, 81 cities don't meet Federal air\nquality standards. This legislation will bring clean\nair to all but 25 cities by 1995 -- and within 20\nyears, even to Los Angeles, Houston and New York.\nIn the nine urban areas with the greatest smog\nproblems, smog will be cut through alternative fuels\nand clean-fueled vehicles. The President is calling\nIN phases\nwith\nfor the phased-in introduction of a half a million\nAlso could\nANd\nAdd \"three-\nclean-fueled vehicles in 1995, building up to a million\nquacters of\nin 1997 through 2007.\nX\nA million iN\n1996,\"\nTo the maximum extent feasible, automobile and\nfuel companies will be allowed to trade reduction\ncredits among themselves.\n-- Toxic Air Emissions: All categories of airborne toxic\nchemicals should be cut by 75 percent by the year 2000.\nIn its first phase, this initiative should eliminate\nabout three-quarters of the needless deaths from cancer\nthat are suspected to have been caused by toxic\nindustrial air emissions.\nUntil now, because of an unworkable law, the EPA\nhas been able to regulate only seven of the 280 known\nair toxics. These reforms will allow EPA to do its job\nbetter, and will apply the most advanced industrial\ntechnology available to control these airborne poisons.\nThe legislation promises certifiable progress in\n17\nregulating sources of toxic air emissions on a set\nschedule.\nAlaskan oil spill: A Cabinet-level team was sent to assess\nthe Alaskan oil spill, and a joint federal-state resource\nrecovery team was convened. The National Transportation\nSafety Board is investigating the accident itself. Exxon\nhas accepted responsibility for paying for the cleanup, and\nfor employing local civilian personnel necessary to control\nfurther damage. EPA Administrator Reilly is coordinating the\nlong-range planning to restore the environment of Prince\nWilliam Sound, and the President has ordered a review of\nexisting contingency plans for accidents such as this.\n-- The President has set up a special task force to\naddress environmental concerns about oil and gas\ndrilling off the coasts of California and Florida.\n--\nThe Administration transmitted to the Congress a\ncomprehensive oil spill liability bill, to XXX (call\nTransoportation)\nCleaning up hazardous wastes: The President announced he\nwill be seeking new legislation to give the United States\nGovernment authority to ban all exports of hazardous waste\nexcept where an agreement exists with the receiving country\nproviding for the safe handling and management of those\nwastes.\n18\nAlso, Secretary of Energy Watkins has put forth a plan of\naction to identify and prioritize clean up of defense and\ncivilian radioactive waste.\nSuperfund: The President is reinvigorating the Superfund\nhazardous waste clean-up program by directing EPA to take a\nnumber of actions, including more aggressive action to force\nprivate parties to clean up sites, stepped-up cost recovery,\nand better use of existing emergency cleanup authorities.\nEPA is also now finishing a priority review of Superfund to\nimprove its operation.\nOzone depletion: The President has called for a total\nworldwide phaseout of CFCs by the year 2000, provided safe\nsubstitutes are available, in order to prevent further\ndamage to the earth's protective ozone layer.\nClean water and coastlines: The EPA has started a tracking\nsystem for medical wastes and the Justice Department has\nset\nup\nstarted a task force to prosecute these abuses -- the first\nstep in a comprehensive program to help keep our beaches\nclean. The President is committed to end ocean dumping of\nsewage sludge by 1991.\n19\nWetlands: The President is committed to \"no net loss of\nwetlands\" and is directing his agencies to work toward that\ngoal. He has also proposed $206 million in his budget to\nexpand our parks and wildlife refuges.\nCOMBATTING VIOLENT CRIME\nThe President is working to strengthen the nation's criminal\njustice system and the Federal, state, and local law enforcement\npartnership.\nFour principles underlie the goals of our criminal justice\nsystem and the means for accomplishing them: First, to protect\ncitizens and their property; to hold those who commit violent\ncrimes accountable for their actions; to have as the objective of\nour criminal justice system the swift and certain apprehension,\nprosecution and incarceration of those who break the law; and\nfinally, to ensure a sustained, cooperative effort by Federal,\nState and local law enforcement authorities.\nACTION BY THE ADMINISTRATION:\nOn May 15, 1989, President Bush transmitted to Congress The\nComprehensive Crime Control Act of 1989 to combat violent\ncrime. Elements of the legislation include:\n20\n-- Strengthening Current Laws: The President is calling\non Congress to double the mandatory minimum penalties\n-- from five years to ten years in Federal prison --\nfor the use of semi-automatic weapons in violent crimes\nor drug felonies.\nIn addition, the Attorney General has been\ndirected to advise America's prosecutors to end plea\nbargaining for violent Federal firearms offenses.\nPresident Bush called on Congress to enact the\nsteps necessary to implement the death penalty for the\nmost serious Federal crimes, and urged state Governors\nto match these Federal initiatives -- new mandatory\nsentencing, tougher rules on plea bargaining, and\nimplementing the death penalty -- in the States.\n-- Controlling Certain Semi-Automatic Weapons: The\nPresident also announced that the Administration has\nmade permanent the temporary suspension on the\nimportation of any semi-automatic weapons which fail to\nmeet the criteria specified in the Gun Control Act of\n1968; he also called for the closing of loopholes which\nallow access to such guns by certain classes of\ncriminals. The President introduced legislation\nprohibiting the importation, manufacture, sale or\ntransfer of gun magazines of more than 15 rounds.\n-- Augmenting Enforcement: The President has directed the\nAttorney General and the Treasury Secretary, working\n21\ntogether with state and local authorities, to launch a\ncomprehensive, coordinated offensive against America's\nmost violent criminals.\nPresident Bush requested funding for hiring 825\nnew Federal agents and staff -- 375 at the Bureau of\nAlcohol, Tobacco and Firearms; 300 at the FBI; and 150\nDeputy U.S. Marshals. This offensive, including State\nand local enforcement authorities, will target violent\ncriminals and repeat offenders.\n-- Enhancing Prosecution: The President proposed\nincreased funds for the U.S. Attorneys Offices to\nsupport 1,600 new prosecutors and staff, and increased\nfunds for the Justice Department Criminal Division to\nsupport 168 new positions, to handle drug cases,\nweapons offenses and other priority matters.\n-- Expanding Prison Capacity: The President proposed an\nadditional $1 billion for Federal prison construction,\nbringing the total FY 1990 budget to over $1.5 billion.\nThis will add 24,000 new Federal prison beds to the\ncurrent 31,000 beds, an increase of nearly 80%.\nFIGHTING DRUG ABUSE\nWe have begun a new war on drugs in this country. The\nPresident believes a four-pronged approach is key: education,\nrehabilitation, interdiction and enforcement. The policy of\n22\nthis Administration is \"zero tolerance.\" No amount of illegal\ndrug use is acceptable. This means dealing with both supply and\ndemand.\nACTION BY THE ADMINISTRATION:\nBudget: The Administration is requesting $6 billion in\nfunding for FY 1990 to fight the drug war, increasing\noutlays by nearly $1 billion for drug education, treatment\nand enforcement.\nEducation: The Administration is requesting nearly $1.1\nbillion for education and prevention efforts. This is a 16\npercent increase over 1989, and includes funding for ongoing\nprograms and new initiatives.\nRehabilitation: Funding for drug abuse treatment will be\nincreased 18 percent. The Administration is proposing over\n$700 million to expand the nation's capacity to provide\ntreatment, particularly to the indigent, disadvantaged,\nyouth, and expectant mothers.\nInterdiction and enforcement: The Administration is\nproposing over $4.1 billion for law enforcement programs in\n1990, a 10 percent increase over 1989. This constitutes\nabout 70 percent of President Bush's proposed drug budget.\n23\nSubstantial increases are requested in funding to strengthen\ninspection, interdiction, intelligence efforts and crop\neradication programs, such as Operation Polar Cap, a\nfederally led effort which broke up a $1.2 billion drug\nmoney-laundering operation. The President strongly supports\nthe death penalty for drug kingpins who commit drug-related\nmurders, and will appoint judges who will strongly enforce\nthe drug penalty laws.\nPublic housing: The Bush Administration is working to make\npublic housing drug free, to protect the rights of the vast\nmajority of decent, law-abiding public housing residents.\nThe Department of Housing and Urban Development has acted:\n-- To modify its lease and grievance procedures to\nfacilitate eviction of those involved in drug related\ncriminal activity;\n-- To make drug use and trafficking a lease violation\nsubject to eviction proceedings;\n-- To target federal assistance to anti-drug security\nmeasures;\n-- To revoke federal housing subsidies from those dealing\nin drugs;\n-- To involve the private and voluntary sectors in efforts\nto rid public housing of drugs and give residents,\nespecially young people, a stake in their communities\nand their futures.\n24\nIn addition, the Office of National Drug Control Policy has\nresponded to the drug emergency in the District of Columbia\nby expanding the Metropolitan Area Task Force, working for\nmore prisons, providing FBI support in enforcement, and\nproviding the assistance of the National Institute on Drug\nAbuse to local treatment efforts. The Department of\nEducation will provide the District with 50 percent more\nfunds for drug prevention programs in city schools. The\nDepartment of Labor will provide support for employee\nassistance programs and work with the business community to\nincrease job training for youth.\nWORKING FOR A KINDER, GENTLER AMERICA\nCHILD CARE\nThe changing nature of American society heightens the need\nfor quality, affordable, accessible child care. President Bush\nwants to put choice in the hands of parents so that they -- not\ngovernment -- have the power to select the best and safest\nenvironment for their children.\n25\nACTION BY THE ADMINISTRATION:\nChild care: The President has transmitted to the Congress a\nchild care package, the Working Family Child Care Assistance\nAct of 1989 which:\n--\nProvides a new refundable child care tax credit of up\nto $1000 per child under four, for low and moderate\nincome working families.\n:\nMakes the existing Child and Dependent Care Tax Credit\nrefundable.\n--\nDoes not discriminate against religious- and family-\nbased child care.\nThe President has directed Secretary of Labor Dole to study\nthe market for liability insurance to determine if liability\nissues impair child care.\nHead Start: The President has also transmitted legislation\nto the Congress which would increase the FY 1990\nauthorization for Head Start by $250 million; this will pay\nfor enrollment of up to 95,000 , more four-year-olds in the\nprogram.\n26\nNATIONAL SERVICE\nThe President's strategy for overcoming the disintegration\nof communities across America -- not through a federal government\nprogram, but a nationwide service movement -- has three facets:\nFirst, to issue a call to action; second, to identify, enlarge\nand recreate what is working; and third, to discover and\nencourage new leaders.\nACTION BY THE ADMINISTRATION:\nThe Call to Action:\n--\nPresident Bush called on all Americans and all American\ninstitutions, large and small, to make service of\ncentral value in their daily life and work;\n-- All heads of business and professional firms to include\ncommunity service among the factors considered in\nmaking hiring, compensation and promotion decisions;\n-- Newspapers, magazines, radio and television stations,\ncable systems, and other media institutions to identify\nservice opportunities, spotlight successful service\ninitiatives and profile outstanding community leaders\nregularly;\n:\nAll state and local education boards to uphold the\nvalue of service and to encourage students, faculty and\npersonnel to serve others;\n27\n-- College and university presidents to recognize the\nvalue of community service in considering applicants,\nand to encourage and uphold the value of community\nservice;\n-- and not-for-profit service organizations to build the\ncapacity to absorb increasing numbers of volunteers in\npurposeful roles.\nIdentifying, Enlarging, and Recreating What is Working: The\nPresident announced the formation of a foundation called the\nPoints of Light Initiative, of which he will serve as\nHonorary Chairman. Formed to identify and build upon what\nis working, the Foundation will be a magnet for the best\nideas and brightest programs in community service. The\nAdministration will ask Congress for $25 million annually to\nsupport this Initiative, which will, in turn, seek matching\nfunds from the private sector. The President has also\nencouraged all governors and mayors nationwide to join the\nmovement by forming State and local Points of Light working\ngroups composed of outstanding leaders.\n-- Through a Foundation initiative called the ServNet\nProject, professional firms, corporations, unions,\nschools, religious, civic and not-for-profit groups\nwill be asked to donate the services of some of their\nmost talented and promising people for a period of\ntime. Peer-to-peer working groups will be formed to\n28\nbring examples of successful initiatives and providing\ntraining, technical assistance and other support to\nenable other institutions to devise similar\ninitiatives.\n--\nAnother Foundation initiative, the ServLink Project,\nwill help improve existing methods of matching would-be\nvolunteers with purposeful service opportunities.\nServLink will stimulate the development through private\nsector resources of \"technology links\" between those\nwho wish to serve and those needing service in the\ninquirer's own community.\nThe Foundation will also recognize successful community\ninitiatives and outstanding leaders through two new\nPresidential Awards:\n--\nThe National Service Youth Leadership Awards will\nbe given each year to individuals.\n--\nThe President's Build a Community Awards will\nhonor those people and institutions who have\nworked together to rebuild families or to\nrevitalize communities.\n29\nWELFARE REFORM\nThe Administration has developed a major new education and\njob training program to help recipients of Aid to Families with\nDependent Children move off welfare and become economically self-\nsufficient.\nACTION BY THE ADMINISTRATION:\nWelfare reform: The Administration issued proposed rules on\nApril 18 to implement the major provisions of the Family\nSupport Act of 1988. The proposed rules are designed to:\n--\nTarget job training assistance to those who are most\nlikely to benefit and who are most at risk for long-\nterm welfare dependency.\n--\nProvide maximum level of flexibility to AFDC parents in\nobtaining the type of child care that best suits their\nneeds, consistent with the Administration's legislative\nproposals on child care.\nJOBS Program: The Administration is proposing to spend $3.3\nbillion over the next five years implementing the JOBS\nprogram. The changes will pay benefits in the future by\nreducing the number of individuals on welfare. It is\nestimated that 138,000 families will be able to leave\n30\nwelfare rolls over the next five years as a result of this\nprogram.\nEXPANSION OF MEDICAID\nThe Administration is committed to health care for the\ndisadvantaged, calling for full funding of Medicaid, $37.6\nbillion for FY 1990, an increase of $3.3 billion, or 9.6 percent\nover the FY 1989 level.\nACTION BY THE ADMINISTRATION:\nExpanding Medicaid: On April 18, the Administration\nforwarded to Congress proposed legislation to make federal\nprograms better serve pregnant women, infants and children.\nThe legislation would expand the population Medicaid serves,\nmaking Medicaid available to 1.9 million more women when\nthey became pregnant. The legislation would:\n-- Increase by 374,000 the number of pregnant women and\nchildren eligible for Medicaid.\n--\nFoster greater participation in Medicaid by eligible\npregnant women by providing services to pregnant women\nwho are presumed eligible for Medicaid before a formal\neligibility determination is made; and by requiring\nStates to operate outreach programs in areas of high\ninfant mortality.\n31\n--\nEntitle all children under age 6 who are receiving Food\nStamps to Medicaid coverage for immunizations.\n-- Make the Federal match rate for State administration\nexpenses a uniform 50 percent by gradually reducing\nspecial administrative match rates ranging from 75 to\n100 percent. The savings that would result would allow\nthe legislative eligibility changes proposed by the\nPresident to be implemented within the current\nprogram's spending level.\nHOUSING/HOMELESSNESS\nPresident Bush has taken a number of steps to create an\n\"opportunity society\" of jobs, growth, housing and hope for\nAmericans in need of a helping hand.\nACTION BY THE ADMINISTRATION:\nHomelessness: ((In his FY 1990 budget)) the President has\nproposed to provide over $1 billion in federal resources to\nhelp end homelessness and pave the way to jobs, permanent\nhousing, health care and human dignity. President Bush's\nproposal calls for fully funding the McKinney Homeless\nAssistance Act and for a new $50 million matching grant\n32\nprogram to promote public/private partnerships to assist\nhomeless families and the mentally ill.\nEnterprise zones: President Bush has called for enactment of\nenterprise zone legislation, to give urban and rural areas\nthe opportunity for jobs and hope for the future. President\nBush asked Congress to enact labor and capital-based\nincentives to create jobs and entrepreneurial activity in\nour most distressed communities.\nAffordable housing: President Bush is committed to making\nhousing more affordable for low-income families, and to\nprovide homeownership opportunities to the disadvantaged and\nto young families. President Bush proposes to assist\n109,000 new families in need of low-income housing, and has\npledged to maintain assistance to those families already\nbeing helped. President Bush has also signalled his\ncommitment to helping poor residents in public housing to\nbecome homeowners through resident management and ownership\nprograms.\nETHICS AND CIVIL RIGHTS\nHigh ethical standards and civil rights for all Americans\nare central to this Administration, and we will enforce them --\n33\nstrictly, comprehensively, fairly, and to the letter and spirit\nof the law.\nACTION BY THE ADMINISTRATION:\nCampaign Finance Reform: The President's comprehensive\ncampaign finance proposal is designed to lessen the power of\nspecial economic interests and restore competition to\nAmerican Congressional elections. The package, which seeks\nto increase the role of individuals and political parties in\nthe electoral process, has four facets:\n--\nEliminating political action committees (PACs)\nsupported by corporations, unions or trade\nassociations, and prohibiting such entities from paying\nfor the overhead or administrative costs of any\nindependent PAC.\n--\nStrengthening political parties by increasing the\namounts they can spend on behalf of congressional\ncandidates. This source of funds would permit\nlegislators to spend less time fundraising, would\nensure that challengers have greater resources with\nwhich to challenge incumbents, and would further limit\nthe role of special economic interests in elections.\n:\nAddressing the problem of the \"permanent Congress\" by\nreforms designed to reduce the unwarranted advantages\nof incumbency. Specifically, the proposals would\n34\nprohibit the personal use of excess campaign funds,\ndrastically reduce Congressional mailings under the\nfrank, ban the rollover of campaign funds from one\nelection cycle to the next, and legislate fair neutral\ncriteria for the redistricting of Congressional and\nlegislative lines that will follow the 1990 census.\n--\nFully disclosing all soft money spent by the political\nparties and all labor unions, corporations and trade\nassociations to influence a federal election.\nEthics: The President issued an Executive Order creating\nthe President's Commission on Federal Ethics Law Reform. On\nMarch 9, the Commission filed its report and its\nrecommendations to the President. Legislation was sent\nApril 12th to the Congress, and the President issued an\nExecutive Order announcing ethical principles for the\nconduct of executive branch employees. The President's\nproposals include:\n-- A ban on outside earned income for non-career\nPresidential appointees in the executive branch,\nincluding all employees in the immediate White House\nOffice.\n-- Expanded financial disclosure for all three branches of\ngovernment.\n35\n-- Prohibition of the conversion of political\ncontributions for personal or office use.\n-- Deferral of tax liability when an individual is\nrequired by his or her agency to divest assets in order\nto avoid conflicts of interest.\n--\nStrengthened rules against abusing the revolving door\nfor private gain at the expense of the public trust.\nThese rules also apply to the legislative branch.\n-- A 25 percent pay raise for federal judges was proposed\nin separate legislation submitted April 12, while the\nethics reform legislation restricts their acceptance of\nhonoraria. President Bush believes that honoraria for\nMembers of Congress should be banned; however, the\nPresident will not formalize that proposal until after\nhe consults with Congress on that issue and their pay\nraise. He will include in that discussion the question\nof a pay increase for certain executive branch\npositions.\n-- The extension of the Independent Counsel statute to\ncover the Congress.\n-- The extension of the federal statute that prohibits\nemployees from taking actions that enhance their own\nfinancial interest to cover legislative and judicial\nbranch employees.\n36\n-- The establishment of an independent ethics office for\nthe Congress, to be headed by a clearly nonpartisan\nofficial, confirmed by both houses.\n-- The application of the existing one-year post-\nemployment \"cooling-off\" period for senior executive-\nbranch employees to the legislative and judicial\nbranches.\nWhistleblower protection: The President supports public\nservants who revere the trust placed in them by the American\npeople. On April 10, the President signed S. 20, the\n\"Whistleblower Protection Act of 1989.\" This law will\nstrengthen the protections and procedural rights available\nto those federal employees who report misdeeds and\nmismanagement.\n-- This new law will enhance the authority of the Office\nof Special Counsel, and whistleblowers will also now be\nallowed to take their cases to the Merit Systems\nProtection Board.\n-- The statute alters the legal burdens of proof, making\nit easier for employees to be vindicated when they are\nwrongfully penalized by their supervisors for\nwhistleblowing activities.\n37\nCivil rights: The Administration has taken a number of\nactions to protect the civil rights of all Americans,\nincluding several court actions in key civil rights cases.\n--\nOn March 8, the Department of Justice endorsed the\nobjectives of the Hate Crimes Bill and voiced no\nopposition to the bill's enactment. The Hate Crimes\nBill provides for the collection of data about crimes\nmotivated by race, religion, ethnicity or sexual\norientation.\n--\nOn March 13, Attorney General Thornburgh announced the\nfiling of Federal housing discrimination lawsuits\nseeking monetary damages and civil penalties under the\nexpanded enforcement authority of the Fair Housing\nAmendments Act of 1988.\n# # #"
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