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Originally Processed With FOIA(s): FOIA Number: S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Speech File Draft Files Subseries: Chron File, 1989-1993 OA/ID Number: 13499 Folder ID Number: 13499-003 Folder Title: Six Months Accomplishments 8/8/89 [2] Stack: Row: Section: Shelf: Position: G 25 6 4 5 7, Rett gave me 4586 this l have !1 Dave.bors not made the May 11, the Administration requested change prehensive oil pollution since it has legislation that broadens and tchwork of laws. The bill been Staffed compensation for cleanup costs out know let me what to do of lity system based on strict financial responsibility requirements for shipowners backed up by an oil-industry financed fund. postponed Outer Continental Shelf Task Force: The President set up a special task force to address environmental concerns about oil and gas drilling off the coasts of California and Florida. Pendi the recommentations of the task face, the Priduct has imported drilljadinty Malytay areas. -- On April 18, the Interior Department proposed a $6 million research program on oil spill detection, containment and clean-up technology. Clea President announced he will DR- ) amend the Resource Con Please make this order to give the United Sta change, ifnot too n all exports of hazardous was prc lat- disregard with the receiving country the others. nd management of those was Addyto Putt $206 million - new money to expand ad incrove America national pooks ad wildlife funds sil Maloley presewe open space ad valuable pals t wstlods for generation come. rofyes. From Florida to California to Wisconsin, these to will DRAFT 1 ( (Grant)) August 8, 1989 Draft six A:sixmonth BUILDING A BETTER AMERICA ACCOMPLISHMENTS OF THE BUSH ADMINISTRATION SUMMARY As the Bush Administration passes the six-month mark, the President has set the agenda on a number of fronts-domestically - - from the environment and education to the fight against drugs and crime. The economy is strong, with the current economic expansion continuing to set new records and create new jobs. contenues to 1 lead Meanwhile, America is standing tall in the international arena, success after President Bush's leadership at two multilateral summits paved the way for greater understanding among the allies and improved relations with the Soviet Union and the Eastern Bloc nations. KEEPING THE ECONOMY STRONG Record expansion: During the current economic expansion -- now in its 80th month as of July -- over 20 million jobs have been created and the unemployment rate has fallen to levels not seen in 15 years. Income levels have risen sharply and growth in industrial output is nearly double 2 that of Western Europe. Consumer price inflation has remained under five percent for the past seven years. Budget agreement: The President has put forth a budget which restrains overall growth of spending and meets the Gramm- Rudman-Hollings targets -- with no new taxes in fiscal year 1990. The President and Congress announced on April 14 a budget plan to reduce the estimated fiscal year 1990 deficit by about $64 billion below fiscal year 1989. Savings and Loans: On August 9, the President signed the Financial Institution Reform, Recovery and Enforcement Act of 1989 to begin solving the savings and loan crisis. The President's plan calls for tough standards to help ensure such a crisis never happens again. Third World debt: The Administration has taken the lead in finding a way to reduce the debt burden and encourage economic growth in developing countries. At the Administration's urging, the IMF and World Bank have set aside funds to support debt reduction programs for developing countries. Capital gains tax cut: The President has sent to the Congress a proposal that would re-establish a capital gains differential to lower the cost of capital, create incentives 3 for investment, make American business more competitive and create new job opportunities. Minimum wage: The President, by vetoing the excessive across-the-board increase in the minimum wage proposed by Congress, preserved job opportunities for the disadvantaged and blunted the adverse economic impact such a move would have had. International Trade: The Bush Administration successfully broke a stalemate in the Uruguay Round of multilateral trade negotiations and advanced its proposal to correct and prevent trade distortions in agriculture. It is engaged in bilateral trade talks with important trading partners to discuss stuctural an encourage them to open their markets to our exports impedments to expanding trade and SEIZING INTERNATIONAL OPPORTUNITIES FOR PEACE "Europe Whole and Free": In a series of major speeches, the President outlined a vision of a new Europe -- secure, prosperous, whole and free -- vindicating four decades of Western policies and seizing an historic opportunity to move toward ending the postwar division of Europe. Poland and Hungary: The President signalled his strong support for democratic change in Hungary and Poland by 4 visiting those nations and offering political and moral support as well as economic and trade incentives. Economic Summit: Under President Bush's leadership, the Paris Economic Summit made further progress on key U.S. economic and political objectives such as a strengthened debt strategy, economic policy coordination, completion of the Uruguay Round by December 1990 and international cooperation on protection of the environment. Our political the Presidents' call for concerted ac team in) allies agreed to support Polish and Hungarian economic of reforms. "Beyond Containment": The President has responded to great changes in the Soviet Union by moving "beyond containment" to a policy that seeks to integrate the Soviet Union into the community of nations. insert #1 Arms Control/NATO Summit: In arms control, the President has accelerated the pace of negotiations with the Soviet Union, with new American initiatives on reducing conventional forces in Europe (endorsed by the NATO Summit), on "open skies," and on strategic arms reduction. The U.S.-Soviet Dialogue: The US-Soviet dialogue on Third World regional conflicts has resumed intensively, and a US- Soviet dialogue has begun on a new range of global problems 4 visiting those nations and offering political and moral support as well as economic and trade incentives. Economic Summit: Under President Bush's leadership, the Paris Economic Summit made further progress on key U.S. economic and political objectives such as a strengthened debt strategy, economic policy coordination, completion of the Uruguay Round by December 1990 and international cooperation on protection of the environment. Our political (our call for "concerted action allies agreed to support Polish and Hungarian economic of reforms. insert#1 at the the "Beyond Containment": The President has responded to great out changes in the Soviet Union by moving "beyond containment" and 1 ima to a policy that seeks to integrate the Soviet Union into the to 15 Plans Paysha the community of nations. the a in reduce beld чигоре the also Arms Control / NATO Summit: In arms control the President has in am forces NATIO home proposal other arms centrol accelerated the pace of negotiations with the Soviet Union, with new American initiatives on reducing conventional in power Europe. forces in Europe (endorsed by the NATO Summit) on "open skies," and on strategic arms reduction (including A early verificationnes), and and ^ nuclear testing. Pung my loadership The U.S.-Soviet Dialogue: The US-Soviet dialogue on Third World regional conflicts has resumed intensively, and a US- mt Soviet dialogue has begun on a new range of global problems words his 5 that require global cooperation, such as terrorism, the environment, and narcotics. China: In response to the suppression of the democratic movement in China the President signalled that we cannot condone repression while he worked to preserve the basic elements of a strategically important relationship, Central American accord: The President and Congressional leaders agreed on March 24 on a bipartisan strategy for peace and democracy in Central America. Strengthening Our strategic Deterrent: After a thorough review of U.S. defense strategy, the President submitted to the Congress a defense budget that will modernize our ability to deter war. INVESTING IN OUR FUTURE Education: The President proposed and sent to the Congress a comprehensive education package, The Educational Excellence Act of 1989, which includes seven initiatives -- on merit and magnet schools, alternative certification of teachers, excellence awards for teachers, emergency grants to help urban schools to fight drugs, increased funding for 6 endowments at Historically Black Colleges, and a National Science Scholars program. The Act has been reported to the Senate floor virtually intact. Natural Gas Deregulation: On July 26, the President signed into law the Wellhead Decontrol Act of 1989, which ends all remaining price controls on natural gas. This will phase out all federal price controls on natural gas by January 1, 1993. Clean Air Act revisions: On July 21, President Bush transmitted to the Congress the first revisions to the Clean Air Act since 1977. His legislation is designed to drastically reduce three major threats to the nation's environment: acid rain, urban air pollution, and toxic air emissions. Hazardous waste: The President announced that he will seek new legislation to ban all exports of hazardous waste unless an agreement already exists with the receiving country to provide for its safe handling. Ozone depletion: In order to prevent further damage to the earth's protective ozone layer, the President has called for a total worldwide phaseout of CFCs by the year 2000, provided safe substitutes are available. 7 Medical Waste: The EPA has begun a tracking system for medical wastes and the Justice Department has started a task force to prosecute those who deliberately dump medical wastes into the Nation's waters -- the first step in a comprehensive program to help keep our beaches clean. The President is committed to end ocean dumping of sewage sludge by 1991. Wetlands: The President is committed to "no net loss of wetlands" and is directing his executive branch agencies, through an interagency task force, to make recommendations to achieve that goal. He has also proposed $206 million in his budget to expand parks and wildlife refuges. Combatting Violent Crime: President Bush transmitted to Congress The Comprehensive Violent Crime Control Act of 1989 proposing measures to augment enforcement and prosecution, restrict strengthen current law, control certain semi-automatic weapons, and expand prison capacity. over Fighting Drug Abuse: The Administration is requesting $6 billion in funding for FY 1990 to fight the drug war, increasing outlays by nearly $1 billion for drug education, treatment and enforcement. In September, the President will announce the Administration's new drug strategy and budget. 8 Drug-free Public Housing: The Bush Administration is working to make public housing drug free, and to protect the rights of the vast majority of decent, law-abiding public housing residents. D.C. Anti-Drug Efforts: The Office of National Drug Control Policy has responded to the drug emergency in the District of Columbia by expanding the Metropolitan Area Task Force, working for more prisons, and providing support in enforcement and local treatment efforts. Space: The President announced a three-step commitment to establish America's preeminence in space -- Space Station Freedom, a permanent presence on the Moon, and a manned mission to Mars -- for this and future generations. Department Jonopor ta tion The adums ha from has begun a public outreach Transportation: The President directed the Secretary of effoot to Transportation to develop a national transportation policy to move America into the 21st century. 111 WORKING FOR A KINDER, GENTLER AMERICA Child Care: The President has transmitted to the Congress a child care package, the Working Family Child Care Assistance Act of 1989 which provides a new refundable child care tax 9 credit of up to $1000 per child under age four, for low and moderate income working families. This legislation will also make the existing Child and Dependent Care Tax Credit refundable, and does not discriminate against religious or family-based child care or a parent who chooses not to work outside the home. Head Start: The President has also transmitted legislation to Congress that would allow a $250 million increase in Head FY 90 Start appropriations. This will pay for enrollment of up to 95,000 more four-year-olds in the program. National Service: The President is spearheading a movement to call all Americans to national service. He has announced the formation of a foundation known as the Points of Light duplicate Initiative to identify, enlarge and recreate those community service initiatives that are working and to discover and encourage new leaders. Welfare Reform: The Administration issued proposed rules on April 18 to implement the major provisions of the Family Support Act of 1988, as the next step in welfare reform. The Administration is proposing to spend $3.6 billion over the next five years to implement the JOBS program. The Act will help reduce the number of individuals who need welfare. 10 Medicaid: To address the all-too-high infant mortality rate, the Administration forwarded to Congress legislation to improve federal Medicaid assistance to pregnant women, infants and children. Homelessness: President Bush has called for full funding of the McKinney Homeless Assistance Act and for a new $50 million matching grant program to promote public/private partnerships to assist homeless families and the mentally ill. Enterprise Zones: President Bush asked Congress to enact labor and capital-based incentives -- through enterprise zones -- to create jobs and entrepreneurial activity in our most distressed communities. Campaign Finance Reform: On June 29, the President announced comprehensive campaign finance proposals designed to lessen the power of special economic interests and real restore competition to American Congressional elections. Civil Rights: The President has called upon Congress to IS COMMITTED TO SEK reauthorize the Commission on Civil Rights and has proposed legislation extending civil rights protections to disabled americans. additional funding for Historically Black Colleges and Universities (HBCUs). The Administration has endorsed the Hates Crimes Bill which provides for the collection of data 11 about crimes motivated by race, religion, or ethnicity. The Civil Rights Division of the Department of Justice has vigorously pursued the enforcement of the Fair Housing Amendments Act of 1988 which became effective in March. 0 Ethics: President Bush sent his ethics reform legislation, The Government-Wide Ethics Act, to the Congress on April 12, and he issued an Executive Order announcing ethical principles for the conduct of executive branch employees. Whistleblower Protection: On April 10, the President signed S. 20, the "Whistleblower Protection Act of 1989." This law will strengthen the protections and procedural rights available to those federal employees who report misdeeds and mismanagement. # # # BUILDING A BETTER AMERICA SIX MONTHS OF THE BUSH ADMINISTRATION KEEPING THE ECONOMY STRONG Maintaining the current expansion with low inflation is the key to improving standards of living, increasing job opportunities for all Americans, and increasing investment in productive capacity. Economic performance during this expansion has been exceptionally good with extraordinary job growth. The policies of the Bush Administration are designed to preserve this strong record. Record peacetime expansion: The current expansion reached 80 months in July. August will mark the longest peacetime economic expansion in U.S. history, surpassing the World War II expansion of 80 months (from June 1938 - February 1945). Job creation: Over 20 million new jobs have been created during this expansion, and this year, the unemployment rate has reached levels not seen in 15 years. During this decade, America has created more new jobs than Japan and the nations of Western Europe combined. Record income: Real per capita disposable personal income -- personal income after taxes and inflation -- has risen 19 percent during this expansion. Real median family income 2 set a new record in 1987, the last year for which data are available. Industrial output: During this expansion, American 40 No industrial output has grown almost 41 percent, nearly double Western Europe's growth rate in industrial output. Higher national saving and investment: During the first nine months of fiscal year 1989, the Federal Government budget deficit was less than during the same period in the previous fiscal year. Partly due to the discipline of Gramm-Rudman-Hollings, the Federal deficit has declined from 6.3 percent of GNP in fiscal year 1983 to an estimated 2.9 percent this fiscal year. The personal saving rate has rose to 5 during the first half of this year. risen to 5.4 percent Business fixed investment as a percent of real GNP rose to 12.4 percent in the second quarter of 1989. Real, non- tial 3 Inflation under control: Consumer price inflation has m each of the seven years from 1982 to 1988 remained under five percent for the past seven years, and the recent slowing in economic growth to a sustainable rate will lessen price pressures in the near future. The Administration and the Federal Reserve share the goal of achieving price stability consistent with SUS tained economic growth. ACTION BY THE ADMINISTRATION: provides for investment m future growth and competativiness Presenting a budget: The President put forth a budget that and addresses our fundamental obligations for national security at the some time, it and support of the needy, while providing sufficient funds to advance high-priority initiatives. The President's budget restrains overall growth of spending and meets the Gramm-Rudman-Hollings targets -- with no new taxes in Fiscal Year 1990. Reaching a budget agreement with Congress: The President and Congress announced on April 14 a budget plan to reduce the estimated Fiscal Year 1990 deficit by about $64 billion below Fiscal Year 1989. The plan called for reducing the deficit to $99.4 billion, meeting the targets set by the Gramm-Rudman-Hollings law. This is the first budget agreement in recent years reached before the start of the budget year and not framed in the context of crisis. such as protecting the environment, the fuglt against protection of drugs and the mprovement of our educa +conal system 4 Savings and Loan reform: The President signed the Financial Institution Reform, Recovery and Enforcement Act of 1989 on August 9. This legislation comes to grips with the problems facing our savings and loan industry, and will safeguard and stabilize America's financial system. The Act authorizes regulators to spend $166 billion over 10 years to eliminate ongoing losses of more than 500 insolvent savings institutions, and recover assets for taxpayers. This legislation abolishes the agency once responsible for thrift supervision, and creates a new agency InsertA that will operate as part of the Treasury Department. A new insurance fund, called SAIF, will protect deposits in thrift up institutions with the guarantee of the full faith and credit look of the United States. Penalties for wrongdoing by officers of insured institutions will be stiff, and criminal penalties will be added as well. Also, effective immediately, tougher requirements will be established for safe and sound operating practices in the thrift institutions. Gddressing Solution of the international debt problem: The in Administration has taken the lead encouraging commercial banks to reduce the debt and debt service burdens of developing countries. At the Administration's urging, the IMF and World Bank have agreed to support debt and debt service reduction in conjunction with their debtor programs 5 to promote investment, growth, and the return of flight capital to these countries. The recent agreement between Mexico and commercial banks with its emphasis on debt and debt service reduction attests to the viability of the Administration's plan for resolving the LDC (less developed of developing countries countries) debt problems and should lead to similar agreements with other heavily indebted countries. Capital gains tax rate cut: A lower tax rate for long-term capital gains is a key element of President Bush's economic program. It will reduce the cost of capital in the United States, create incentives for investment and increase job opportunities for Americans. The President's proposal, which has been sent to Congress includes: -- A 45 percent capital gains exclusion for qualified capital gains, or a 15 percent maximum capital gains tax rate at the taxpayer's option. -- A phased-in increase in the qualifying holding period from one year to three years. -- An exemption from the capital gains tax for families earning under $20,000. Minimum wage proposal: The President believes in keeping job opportunities available for youth and for those seeking to enter the economic mainstream. The excessive across-the- board increase in the minimum wage which was passed proposed by 6 Congress would have had an adverse economic impact and cut job opportunities drastically. Accordingly, the President vetoed the bill, passed by Congress. The veto was later sustained. International Trade: The Administration is forcefully promoting the opening of world markets. It successfully broke a stalemate in the Uruguay Round's mid-term review and put in place a framework, agreed to by the 96 member nations, to correct and prevent trade distortions in agriculture. It is engaged in bilateral trade talks with important trading partners to encourage them to open their markets to our exports Together these efforts should greatly expand opportunities for U.S. exports. The administration has created a high level interagency group to assure that U.S. trade lather and investment interests are addressed Steel imports: The President initiated a two-and-a-half as the Europeau COMMUNITY WORKS to create a single maretin 1992. year Steel Trade Liberalization Program designed to phase out, in a responsible and orderly manner, the Voluntary Restraint Arrangements (VRA/s) that currently limit steel imports into the U.S. and to negotiate an international consensus to address trade-distorting practices. Agricultural initiatives: The Administration has announced additional advance deficiency payments of 10 percent available to producers of wheat, feed grains, rice and upland cotton. In addition, a top-level Working Group on 7 Rural Development was established by the President to focus on an action-oriented agenda. National Energy Plan: The President directed the Secretary of Energy to develop a comprehensive national energy strategy for the nation. The strategy will help the nation meet our energy security and environmental responsibilities and, at the same time, allow a sensible mix of energy sources to protect America's technical economic competitiveness. SEIZING INTERNATIONAL OPPORTUNITIES FOR PEACE President Bush is committed to maintaining a strong American role in world leadership and sees in present global trends an unprecedented opportunity for strengthening both world peace and the cause of freedom. ACTION BY THE ADMINISTRATION: "Europe Whole and Free": In a series of major speeches, the President outlined a vision of a new Europe -- secure, prosperous, whole and free -- vindicating four decades of Western policies and seizing historic opportunities to move toward ending the postwar division of Europe. 8 -- Western Europe: As the European Community heads toward a single market in 1992 and develops its political institutions and a more coordinated approach to foreign policy, the President welcomed these developments and proposed new mechanisms for consultation with the EC Commission and member states. Seeing the resurgence of Western Europe as a triumph of Western values and principles, the President welcomed its success, confident that a mature partnership will serve mutual interests. -- NATO Summit: At the successful NATO Summit, the President's vision of Europe as well as agreement on a new conventional arms reduction initiative helped restore Alliance unity and confidence and define the The alliance also rea firmed the Alliance's future agenda. importance of a strong and modern moclear deterrent. -- Eastern Europe: As Poland and Hungary take unprecedented steps toward pluralism, democracy, and market economic policies, the United States has signalled its strong support. These steps provide an opportunity not only for a democratic transition in these countries, but also for a broader process of European reconciliation. Offering political and moral support as well as economic assistance, the President Several proposed two major new initiatives for Poland and Hungaryx in response to continue reform. 9 -- Poland: Following up on the program the President announced earlier this year in Hamtramck, Michigan, he called for action to declare Poland a beneficiary country under the U.S. Generalized System of Preferences. The Overseas Private Investment Corporation will be authorized to operate in Poland, and the US is proposing a private business agreement that will promote contacts between the private sectors of both countries. The President will ask Congress to provide a $100 million fund to help capitalize and invigorate the Polish private sector and encourage the World Bank to move ahead with new loans to help Polish agriculture and industry. He has encouraged other members of the Paris Club to agree to an expeditious rescheduling of Polish debt. Finally, he will ask Congress for $15 million in a cooperative venture with Check Poland to help fight air and water pollution in Krakow -- Hungary: The President will ask Congress to authorize a $25 million fund as a source of new capital to invigorate the Hungarian private sector. As soon as new emigration legislation has passed the Hungarian Parliament, the President will inform Congress that Hungary is in full compliance with the restrictions of the Jackson-Vanik Amendments of the 1974 Trade Act. This will make Hungary eligible for Most-Favored-Nation tariff treatment for the maximum period allowable under 10 the law. The President also declared Hungary a beneficiary country under our Generalized System of Preferences which will allow duty free entry of Hungarian products into the U.S. market. He also called for legislation to allow OPIC to operate in Hungary, and for greater scientific, technical, educational and cultural exchanges between the US and Hungary. The President will seek to establish an International Environmental Center for Central and Eastern Europe in Budapest. Finally, he announced that to enhance Exglish language the Peace Corps would operate in Hungary the first time in a European country. -- The Economic Summit in Paris: The mission of the President's historic visit to Poland and Hungary and his successful effort at the Paris Economic Summit was to promote concerted actions among the industrial democracies in the economic and political arenas. The industrial democracies demonstrated their unity, as they dealt with a variety of issues on the international economic agenda, as well as the problem of drugs and the environment. "Beyond Containment": Seeing an historic process of change in the Soviet Union, the President has declared his intention to move beyond the successful policy of containment of Soviet power to a new policy whose goal is 11 integrating the Soviet Union into the world community as a constructive partner. Positive changes so far in Soviet policies in human rights, economic reforms, and settlement of some international conflicts need to be encouraged and broadened. The United States will be ready to respond to such further developments. Already: -- The US-Soviet dialogue on conflicts in regions of the Third World has resumed intensively, with regular meetings at the level of Assistant Secretary of State. -- A US-Soviet dialogue has begun on a new range of global problems that require global cooperation, such as terrorism, the environment, and narcotics. -- In arms control, the President has accelerated the pace of negotiations, with new American initiatives on reducing conventional forces in Europe (endorsed by the NATO Summit), and on strategic arms reduction. U.S. initiatives also aim at early progress on verification issues to further early agreement on strategic arms increased Curns security for ourselves and our allies. our objective is reductions. controlis part of an broad strategy for peace and to reduce the 'MISK ofwar. China: In response to the tragic suppression of the democratic movement in China, the President ordered the suspension of all government-to-government sales and commercial exports of weapons, suspension of visits between US and Chinese military leaders, sympathetic review of requests by Chinese students in the United States to extend 12 their stay, and review of other aspects of US-PRC bilateral relations. The President's policy signals that repression cannot be condoned. But it also seeks to preserve the basic elements of a strategically important relationship that has, itself, played a major part in China's recent policy of reform and openness. Latin America: The President has established a close, working relationship with Latin American neigňbors to foster a new partnership on hemisphere problems like democracy, debt and drugs. Relations with Mexico are closer than at any time in recent memory. The U.S. has also worked with the Organization of American States to develop a hemispheric consensus urging Manuel Noriega to leave power. Bipartisan Accord on Central America: The President and Congress agreed on March 24 on a bipartisan plan for peace and democracy in Central America: -- Regional peace: The President and Congress agreed that the region's democracies deserve our support, that Nicaragua's subversion of its neighbors must end, and that Soviet support for violence and subversion in the hemisphere must also end. Humanitarian aid: Congress agreed to support the Administration's request for continued humanitarian assistance for the Nicaraguan Resistance at 13 current levels through the elections in Nicaragua scheduled for February 1990. -- Democracy: The Communist Sandinistas are being put to the test to permit a real democratic electoral contest for political power, fulfilling the promises of democratic pluralism that they have made (and broken) so often before. Middle East: The Administration is devoted to promoting progress toward peace in the Middle East by supporting the government of Israel's May 14 initiative calling for Palestinian elections in the occupied territories. These elections can be a step toward a comprehensive peace settlement that assures Israel's security and the legitimate political rights of the Palestinians. The Administration is also supporting the efforts of the Arab League to bring peace to Lebanon. A Strong Defense: The President proposed to Congress a two- missile plan to maintain a strong, modernized strategic west deterrent. The plan to deploy the rail-mobile Peacekeeper and the road-mobile Small ICBM will also give the U.S. #2 momentum in strategic arms control negotiations. -- The President proposed to Congress an integrated package on strategic modernization that capitalizes on the revolutionary potential of the B-2, and modernizes Martor Replace section bottom of page 13, top of page 14: Strengthening our Deterrent: The President proposed to Congress an integrated package on strategic modernization for our strategic triad of land-based missiles, manned bombers and submarines and to move ahead with the Strategic Defense Initiative. The programs underpin our defenses and form a foundation for significant progress in strategic arms control. The quality and readiness of our conventional forces will not be sacrificed to meet budgetary constraints. -- Central to this modernization is the President's initiative to deploy both the rail-mobile Peacekeeper and the road-mobile Small ICBM and to capitalize on the revolutionary technology of the B-2. -- The President requested a funding level of $4.6 billion for the Strategic Defense Initiative to support an informed development and deployment decision within the next four years. -- The President's budget preserves the essential capability of our conventional forces, while meeting the challenge of a constrained budget. 14 the third leg of the Triad -- essential also to our arms control positions. -- The President requested a funding level of $4.6 billion for the Strategic Defense Initiative to support an informed development and deployment decision within the next 4 years. Air Transportation Security: The Administration has taken several measures to enhance security and efficiency in the air transportation system. These efforts include: -- A proposed 17% increase in the budget for the Federal Aviation Administration. -- New requirements for installation of explosive detection devices in high-risk airports. -- Intense international negotiations to enhance security abroad. Review of Defense Management: The President directed the Department of Defense to conduct a complete review of its management and acquisition practices. The resulting Administration blueprint to strengthen and streamline the weapons procurement process will serve the American taxpayer well. The President has ordered the Defense Department to implement the blueprint. 15 INVESTING IN OUR FUTURE Record economic growth has provided America with the opportunity to invest in a brighter future. Because America's available resources are limited, the President's programs are designed to focus our efforts on those initiatives most likely to create growth in the years ahead. EDUCATION The President's actions to improve education are guided by four key principles: that excellence and success in education should be recognized and rewarded; that federal funding should be targeted to those who need it most; that choice and flexibility - - for educators, parents and students -- are important to educational reform and to achieving excellence; and finally, that greater accountability is needed in the education system to assure that students are actually receiving the highest quality education. ACTION BY THE ADMINISTRATION: On April 5, the President proposed and sent to the Congress a comprehensive education package, The Educational Excellence Act of 1989, which includes seven initiatives: -- The Presidential Merit Schools program -- to reward schools that are making substantial progress in raising 16 students' educational achievement, creating a safe and drug-free school environment, and reducing the drop-out rate. -- A new Magnet Schools of Excellence program -- to support the establishment, expansion or enhancement of magnet schools, increasing parental choice and improving quality education. : The Alternative Certification of Teachers and Principals program -- to assist States interested in broadening the pool of talent from which to recruit teachers and principals. : President's Awards for Excellence in Education -- to be awarded to public and private school teachers in every state who meet the highest standards of excellence. -- Drug-free Schools Urban Emergency Grants -- to provide special assistance to selected urban school districts that are disproportionately affected by drug trafficking and abuse. -- A National Science Scholars program -- to provide college scholarships to high school seniors who have excelled in the sciences and mathematics. -- Additional Funding Authorization for Endowment Matching Grants at Historically Black Colleges and Universities -- to strengthen HBCUs by building endowments, an especially effective way to create financial strength and long-term security. 17 O On April 24, the President issued a new Executive Order on Historically Black Colleges and Universities (HBCU). S Highlights of the order include: -- Establishing the President's Board of Advisors on Historically Black Colleges and Universities in the Department of Education. -- Directing Federal agencies to increase opportunities for HBCU involvement in Federal programs and directing the Secretary of Education to develop an Annual Federal Plan for Assistance. -- Calling for the White House Office of National Service, along with other Federal offices to work to encourage private sector support of HBCUs. 18 THE ENVIRONMENT President Bush, a long-time environmentalist, has taken strong action to protect the environment. He believes that environmental protection, conservation and wise management of our national resources must have a high priority on our national agenda. ACTION BY THE ADMINISTRATION: Natural Gas Decontrol: On July 26, the President signed into law the Wellhead Decontrol Act of 1989, which ends all arove 20 remaining price controls on natural gas. This will phase out all federal price controls on natural gas by January 1, 1993. Clean Air legislation: President Bush transmitted to the Congress a sweeping program to ensure clean air for all Americans. The President's plan, transmitted to Congress on July 21, 1989, calls for the first revisions to the Clean Air Act since 1977 and is designed to curb three major threats to the nation's environment: acid rain, urban air pollution, and toxic air emissions. -- Acid Rain: Sulfur dioxide emissions that cause acid from 1980 levels rain will be cut in half, by ten million tons and nitrogen oxide levels cut by two million tons -- by the The (idminustration's bill is the on be one which impases a capon emissions after the year 2000 to ensure that a 10million ton reduction is man taired. 19 end of this century. Companies will be allowed to trade credits among themselves for reductions they make, so that they can decide how to bring aggregate emissions down as cost-effectively as possible. -- Urban Air Pollution: By employing a mix of federal measures and state initiatives, this legislation will sharply cut air pollution in our cities by the year 2000. The federal measures alone will cut hydrocarbon emissions -- which contribute to urban ozone -- by almost half. 100 Currently, 81 cities don't meet Federal air quality standards. This legislation will bring clean (intoaHainmentwir THE ozone standard air to all but 4 cities by 2000 -- and within 20 years, even Los Angeles, Houston, New York, and Chicago. In the nine urban areas with the greatest smog the in troduction of problems, smog will be cut through alternative fuels and clean-fueled vehicles. The President is calling for the phased-in introduction of a half a million Sales of clean-fueled vehicles in 1995, building up to a million clean-fuled cars a yeasin in 1997 through 2004. To the maximum extent feasible automobile and fuel companies will be allowed to trade reduction credits among themselves. -- Toxic Air Emissions: All categories of airborne toxic chemicals should be cut by 75 percent by the year 2000. the Presidents plan In its first phase, this initiative should eliminate 20 uzal substantrally reduce the number of about three-quarters of the needless deaths from cancer that are suspected to have been caused by toxic industrial air emissions. Until now, because of an unworkable law, the EPA has been able to regulate only seven of the 280 known air toxics. The President's plan will allow EPA to do its job better, and will apply the most advanced industrial technology available to control these airborne poisons. The legislation promises certifiable progress in regulating sources of toxic air emissions on a set schedule. insert NAT. Gas Alaskan oil spill: A Cabinet-level team was sent to assess the Alaskan oil spill, and a joint federal-state resource recovery team was convened. The National Transportation Safety Board is investigating the accident. Exxon has accepted responsibility for paying for the cleanup, and for employing local civilian personnel necessary to control further damage. The Departments of Transportation and Interior, as well as the EPA, are coordinating the long- range planning to restore the environment of Prince William Sound, and the President has ordered a review of existing contingency plans for accidents such as this. The President also proposed, and the Paris SUMMIT leaders accepted, a call for mcreased international efforts on oil spill preventerm and clean-up. 21 oil Spill Legislation: On May 11, the Administration transmitted to Congress comprehensive oil pollution liability and compensation legislation that broadens and strengthens our existing patchwork of laws. The bill provides swift and assured compensation for cleanup costs and damages through a liability system based on strict financial responsibility requirements for shipowners backed up by an oil-industry financed fund. Outer Continental Shelf Task Force: The President set up a special task force to address environmental concerns about oil and gas drilling off the coasts of California and Florida. -- On April 18, the Interior Department proposed a $6 million research program on oil spill detection, containment and clean-up technology. Cleaning up hazardous wastes: The President announced he will be seeking new legislation to amend the Resource Conservation and Recovery Act in order to give the United States Government authority to ban all exports of hazardous waste unless an agreement exists with the receiving country providing for the safe handling and management of those wastes. 22 Also, Secretary of Energy Watkins has put forth a plan of action to identify and prioritize clean up of defense and civilian radioactive waste; meet the Nation's security needs; and comply with environmental safety and health laws. Superfund: The President is reinvigorating the Superfund hazardous waste clean-up program by directing EPA to take a steps number of actions, including more aggressive action to force private parties to clean up sites, stepped-up cost recovery, and better use of existing emergency cleanup authorities. EPA is also now finishing a priority review of Superfund to improve its operation. Ozone depletion: The President has called for a total worldwide phaseout of CFCs by the year 2000, provided safe substitutes are available, in order to prevent further damage to the Earth's protective ozone layer. Clean water and coastlines: The EPA has started a tracking system for medical wastes and the Justice Department has set up a task force to prosecute those who deliberately dump medical waste into our Nation's waters -- the first step in a comprehensive program to help keep our beaches clean. The President is committed to end ocean dumping of sewage sludge by 1991. NATIONAL Parks, and Reforestation I 23 Wetlands: The President is also committed to "no net loss of wetlands" and is directing his executive branch agencies, through an interagency task force, to make recommendations to achieve that goal. He has also proposed $206 million in new money his budget to expand our parks and wildlife refuges, preserving aud improve (emericas) want them for generations to come. $4 Asbestos Ban: On July 7, EPA announced an almost total phase-out of all uses of asbestos by 1997. The ban will nearly prohibit importation, manufacture and processing of asbestos, a carcinogen linked to lung cancer and mesothelioma (lung and chest cancer). Improved Forecasting: The Commerce Department announced that beginning in Fiscal Year 1990, the National Weather Service will modernize and restructure its operations to provide improved forecasting and weather warning systems. The new system will include advanced weather radar, observation automation, and a new communications system. COMBATTING VIOLENT CRIME The President is working to strengthen the nation's criminal justice system and the Federal, state, and local law enforcement partnership. Four principles underlie the goals of our criminal justice system and the means for accomplishing them: First, to protect Finally, The President supports uncreased lendueg by the deve lopment bauses for re fores ta tron program and the implement tation of the Tropical Fatetal Foust action Plan. EN He also endorsed the call by the Paris Economic Summert for an end to world deforestation unsert # 4 24 citizens and their property; to hold those who commit violent crimes accountable for their actions; to have as the objective of our criminal justice system the swift and certain apprehension, prosecution and incarceration of those who break the law; and finally, to ensure a sustained, cooperative effort by Federal, state and local law enforcement authorities. ACTION BY THE ADMINISTRATION: check? announced On May 15, 1989, President Bush transmitted to Congress The Comprehensive Violent Crime Control Act of 1989 to combat violent crime. The President's initiative includes: -- Strengthening Current Laws: The President is calling on Congress to double the mandatory minimum penalties -- from five years to ten years in Federal prison -- for the use of semi-automatic weapons in violent crimes or drug felonies. In addition, the Attorney General has been directed to advise America's prosecutors to end plea bargaining for violent Federal firearms offenses. President Bush called on Congress to enact the steps necessary to implement the death penalty for the most serious Federal crimes, and urged state Governors to match these Federal initiatives -- new mandatory sentencing, tougher rules on plea bargaining, and implementing the death penalty -- in the States. 25 -- Controlling Certain Semi-Automatic Weapons: In July, the Administration took action to ban permanently the importation of any semi-automatic weapons which fail to meet the criteria specified in the Gun Control Act of 1968. The President also called for the closing of loopholes which allow access to such guns by certain classes of criminals, and he proposed prohibiting the importation, manufacture, sale or transfer of gun magazines of more than 15 rounds. -- Augmenting Enforcement: The President has directed the Attorney General and the Treasury Secretary, working together with state and local authorities, to launch a comprehensive, coordinated offensive against America's most violent criminals. President Bush requested funding for the hiring of 825 new Federal agents and staff -- 375 at the Bureau of Alcohol, Tobacco and Firearms; 300 at the FBI; and 150 Deputy U.S. Marshals. This offensive, including state and local enforcement authorities, will target violent criminals and repeat offenders. -- Enhancing Prosecution: The President proposed increased funds for the U.S. Attorneys Offices to support 1,600 new prosecutors and staff, and increased funds for the Justice Department Criminal Division to support 168 new positions, to handle drug cases, weapons offenses and other priority matters. 26 -- Expanding Prison Capacity: The President proposed an additional $1 billion for Federal prison construction, bringing the total FY 1990 budget to over $1.5 billion. This will add 24,000 new Federal prison beds to the current 31,000 beds, an increase of nearly 80%. ment # 3 FIGHTING DRUG ABUSE We have begun a new war on drugs in this country. The President believes a four-pronged approach is key: education, treatment, interdiction and enforcement. The policy of this Administration is "zero tolerance." No amount of illegal drug use is acceptable. This means dealing with both supply and demand. ACTION BY THE ADMINISTRATION: over Budget: The Administration is requesting $6.4 billion in funding for FY 1990 to fight the drug war, increasing outlays by nearly $1 billion for drug education, treatment and enforcement. Education: The Administration is requesting nearly $1.1 billion for education and prevention efforts. This is a 16 percent increase over 1989 and includes funding for ongoing programs and new initiatives. Insert on P. 26 on P. 7.27 under Fighting Dmg Abuse BF Anti- Drug Treaty The Vienna Convention on Illicit Drugs and Psycho tropic Substances was strongly endorsed by The President and forwarded to the Congress for ratification This is the most significant and Far-reaching treaty on international daught cooperation on drug trafficking, chemical precursor control and money laundering ever to be signed mont #3 27 Treatment: Funding for drug abuse treatment will be increased 18 percent. The Administration is proposing over $700 million to expand the nation's capacity to provide treatment, particularly to indigent, disadvantaged youth, and expectant mothers. Interdiction and enforcement: The Administration is proposing over $4.6 billion for law enforcement programs in 1990, a 20 percent increase over 1989. This constitutes about 70 percent of President Bush's proposed drug budget. Substantial increases are requested in funding to strengthen inspection, interdiction, intelligence efforts and crop eradication programs, such as Operation Snow Cap, a federally led effort which broke up a $1.2 billion drug money-laundering operation. The President strongly supports the death penalty for drug kingpins who commit drug-related murders, and will appoint judges who will strongly enforce the drug penalty laws. Public housing: The Bush Administration is working to make public housing drug free, to protect the rights of the vast majority of decent, law-abiding public housing residents. The Department of Housing and Urban Development has acted: -- To modify its lease and grievance procedures to facilitate eviction of those involved in drug related criminal activity; 28 -- To make drug use and trafficking a lease violation subject to eviction proceedings; -- To target federal assistance to anti-drug security measures; -- To revoke federal housing subsidies from those dealing in drugs; -- To involve the private and voluntary sectors in efforts to rid public housing of drugs and give residents, especially young people, a stake in their communities and their futures. In addition, the Office of National Drug Control Policy has responded to the drug emergency in the District of Columbia by expanding the Metropolitan Area Task Force, working for more prisons, and providing FBI support in enforcement. The assistance of the National Institute on Drug Abuse will be provided to local treatment efforts. The Department of Education will assist the District with 50 percent more funds for drug prevention programs in city schools and the Department of Labor will support employee assistance programs and work with the business community to increase job training for youth. 29 WORKING FOR A KINDER, GENTLER AMERICA CHILD CARE The changing nature of American society heightens the need for quality, affordable, accessible child care. President Bush wants to put choice in the hands of parents so that they -- not government -- have the power to select the best and safest environment for their children. ACTION BY THE ADMINISTRATION: o Child care: The President transmitted to Congress a child care package, the Working Family Child Care Assistance Act of 1989 which: : Provides a new refundable child care tax credit of up to $1000 per child under age four, for low income working families. -- Makes the existing Child and Dependent Care Tax Credit refundable. : Does not discriminate against religious- or family- based child care, or a parent who chooses not to work outside the home. 30 The President has directed Secretary of Labor Dole to determine whether the barriers to securing liability emplayer-provicled insurance impair child care. Head Start: The President also transmitted legislation to Congress that would allow a $250 million increase in Head Start appropriation. This will pay for enrollment of up to 95,000 more four-year-olds in the program. NATIONAL SERVICE The President's vision to help overcome the disintegration of communities and build a better America -- not through a federal government program, but through a nationwide service movement -- has three facets: First, to issue a call to all individuals and institutions to claim society's problems as their duplicate own; second, to identify, enlarge and recreate what is working; and third, to discover and encourage new leaders. ACTION BY THE ADMINISTRATION: President Bush called on: -- all Americans and all American institutions, large and small, to make service of central value in their daily life and work; 31 -- all heads of business and professional firms to include community service among the factors considered in making hiring, compensation and promotion decisions; -- newspapers, magazines, radio and television stations, cable systems, and other media institutions to identify service opportunities, spotlight successful service initiatives and profile outstanding community leaders regularly; -- all state and local education boards to uphold the value of service and to encourage students, faculty and personnel to serve others; -- college and university presidents to recognize the value of community service in considering applicants, and to encourage and uphold the value of community service; and -- not-for-profit service organizations to build the capacity to absorb increasing numbers of volunteers in purposeful roles. Identifying, Enlarging, and Recreating What is Working: The President announced the formation of a foundation called the Points of Light Initiative, of which he will serve as Honorary Chairman. Formed to identify and build upon what is working, the Foundation will act as a magnet for the best ideas and brightest programs in community service and then serve as a catalyst to project these ideas into every corner 32 of the nation. The Administration will ask Congress for $25 million annually to support this initiative, which will, in turn, seek matching funds from the private sector. The President has also encouraged all governors nationwide to join the movement by forming State and local Points of Light working groups composed of outstanding leaders. -- Through a Foundation initiative called the ServNet Project, professional firms, corporations, unions, schools, religious, civic and not-for-profit groups will be asked to donate the services of some of their most talented and promising people for a period of time. Peer-to-peer working groups will be formed to bring examples of successful initiatives and provide training, technical assistance and other support to enable other institutions to devise similar initiatives. -- Another Foundation initiative, the ServLink Project, will help improve existing methods of matching would-be volunteers with purposeful service opportunities. ServLink will stimulate the development, through private sector resources, of "technology links" like telephones, computers and other mechanisms between those who wish to serve and those needing service in the inquirer's own community. 33 -- The Foundation will also discover and encourage new leaders by recognizing them through two new Presidential Awards: -- The National Service Youth Leadership Awards will be given each year to individuals. -- The President's Build a Community Awards will honor those people and institutions who have worked together to rebuild families or to revitalize communities. WELFARE REFORM The Administration has developed a major new education and job training program to help recipients of Aid to Families with Dependent Children move off welfare and become economically self- sufficient. ACTION BY THE ADMINISTRATION: Welfare reform: The Administration issued proposed rules on April 18 to implement the major provisions of the Family Support Act of 1988. The proposed rules are designed to: -- Target job training assistance to those who are most likely to benefit and who are most at risk for long- term welfare dependency. 34 -- Provide maximum level of flexibility to AFDC parents in obtaining the type of child care that best suits their needs, consistent with the Administration's legislative proposals on child care. X JOBS Program: The Administration is proposing to spend $3.3 billion over the next five years implementing the JOBS B,F. program. The changes will pay benefits in the future by reducing the number of individuals on welfare. It is estimated that 138,000 families will be able to leave welfare rolls over the next five years as a result of this program. EXPANSION OF MEDICAID The President is committed to health care for disadvantaged mothers and children, the disabled, and poor, aged Americans and 9.1 has called for full funding of Medicaid. This will mean $37.6 4.8 12.2 billion for FY 1990, an increase of $3.3 billion, or 9.6 percent over the FY 1989 level. ACTION BY THE ADMINISTRATION: Expanding Medicaid: On April 18, the Administration forwarded to Congress proposed legislation to make federal programs better serve pregnant women, infants and children. The legislation would expand the population Medicaid serves, 35 making Medicaid available to 1.9 million more women when they become pregnant. The legislation would: -- Increase by 374,000 the number of pregnant women and children eligible for Medicaid. -- Foster greater participation in Medicaid by eligible pregnant women by providing services to pregnant women who are presumed eligible for Medicaid before a formal eligibility determination is made; and by requiring States to operate outreach programs in areas of high infant mortality. : Entitle all children under age 6, who are receiving Food Stamps, to receive Medicaid coverage for immunizations. -- Make the Federal match rate for State administration expenses a uniform 50 percent by gradually reducing special administrative match rates that currently range from 75 to 100 percent. The savings that would result would allow the legislative eligibility changes proposed by the President to be implemented within the current program's spending level. AIDS INITIATIVES The Administration is moving on a number of fronts to combat the spread of AIDS. 36 ACTION BY THE ADMINISTRATION: AIDS Clinical Trials Information Service: The Administration developed a computerized listing though which AIDS patients and their doctors can get up-to-date information on clinical trials of AIDS drugs and vaccines -- whether federally or privately sponsored. Experimental AIDS Drugs: The Administration unveiled a proposal to allow wider availability of experimental therapeutic drugs used to treat people with AIDS. AIDS Prevention Guide: The Administration joined the National Parent Teachers Association in announcing the distribution of 500,000 copies of the "AIDS Prevention Guide" for use by parents and teachers nationwide. $5 Million Transferred to States -- AIDS Treatment: The Administration transferred $5 million from currently appropriated AIDS funds to assist needy individuals in the purchase of treatment drugs for AIDS and related conditions. 37 HOUSING/HOMELESSNESS President Bush has taken a number of steps to create an "opportunity society" of jobs, growth, housing and hope for Americans in need of a helping hand. ACTION BY THE ADMINISTRATION: Homelessness: In his FY 1990 budget, the President has proposed to provide over $1 billion in federal resources to help end homelessness and pave the way to jobs, permanent housing, health care and human dignity. President Bush's proposal calls for fully funding the McKinney Homeless Assistance Act and for a new $50 million matching grant program to promote public/private partnerships to assist homeless families and the mentally ill. Affordable housing: President Bush is committed to making housing more affordable for low-income families, and to provide homeownership opportunities to the disadvantaged and to young families. President Bush proposes to assist through HUD Subsidized Housing 109,000 new families in need of low-income housing, and has Programs, HUD pledged to maintain assistance to those families already being helped. President Bush has also signalled his commitment to helping poor residents in public housing to 38 become homeowners through resident management and ownership programs. OPPORTUNITY Enterprise zones: President Bush has called for enactment of enterprise zone legislation, to give urban and rural areas the opportunity for jobs and hope for the future. President Bush asked Congress to enact labor and capital-based incentives to create jobs and entrepreneurial activity in our most distressed communities. adiministration Job training: The President has sent to the Congress a proposal to improve the Job Training Partnership Act by targeting its resources on the poor and at risk youth and adults who most need job training to get jobs and become economically self sufficient. CIVIL RIGHTS The Bush Administration is committed to reaching out to minorities, and to striking down barriers to free and open access. The President has made it clear that this Administration will not tolerate discrimination, bigotry or bias of any kind. 39 ACTION BY THE ADMINISTRATION: Civil rights: The Administration has taken a number of actions to protect the civil rights of all Americans, including several court actions in key civil rights cases. -- The President has called upon Congress to reauthorize the Commission on Civil Rights. -- The Administration endorsed the Hate Crimes Bill, which provides for the collection of data about crimes motivated by race, religion, or ethnicity. -- On March 13, Attorney General Thornburgh announced the filing of Federal housing discrimination lawsuits seeking monetary damages and civil penalties under the expanded enforcement authority of the Fair Housing Amendments Act of 1988. Disabled Americans: The Administration has reached a consensus with key Senators on legislation that would fulfill the President's commitment to seek legislation extending civil rights protections to disabled Americans. The legislation, called the Americans with Disabilities Act, would represent the most significant expansion of federal civil rights laws in the past two decades. -- The legislation would provide unprecedented protections against discrimination in the area of employment, 40 requiring reasonable accommodation be made by employers for disabled potential employees. Most -- All new buildings would be required to be accessible to the disabled. -- Stores, providers of services, restaurants and other public accommodations would be required to serve disabled Americans to the same extent they serve able Americans. Whistleblower protection: On April 10, the President signed S. 20, the Whistleblower Protection Act of 1989. This law will strengthen the protections and procedural rights available to those federal employees who report misdeeds and mismanagement. -- This new law will enhance the authority of the Office of Special Counsel, and whistleblowers will also now be allowed to take their cases to the Merit Systems Protection Board. -- The statute alters the legal burdens of proof, making it easier for employees to be vindicated when they are wrongfully penalized by their supervisors for whistleblowing activities. 41 ETHICS High ethical standards for all Americans are central to this Administration, and we will enforce them -- strictly, comprehensively, fairly, and to the letter and spirit of the law. ACTION BY THE ADMINISTRATION: Campaign Finance Reform: The President's comprehensive campaign finance reform proposal is designed to lessen the real power of special economic interests and restore competition to American Congressional elections. The package, which seeks to enhance the role of individuals and the political parties in elections. Below are proposal highlights: -- Eliminating political action committees (PACs) supported by corporations, unions or trade associations, and prohibiting such entities from paying for the overhead or administrative costs of any independent PAC. -- Strengthening political parties by increasing the amounts they can spend on behalf of congressional candidates. This source of funds would permit legislators to spend less time fundraising, would ensure that challengers have greater resources with which to challenge incumbents, and would further limit the role of special economic interests in elections. 42 -- Addressing the problem of the "permanent Congress" by reforms designed to reduce the unwarranted advantages of incumbency. Specifically, the proposals would prohibit the personal use of excess campaign funds, drastically reduce Congressional mailings under the frank, ban the rollover of campaign funds from one election cycle to the next, and legislate fair neutral criteria for the redistricting of Congressional and legislative lines that will follow the 1990 census. -- Fully disclosing all soft money spent by the political parties and all labor unions, corporations and trade associations to influence a federal election. Prohibition of the conversion of political contributions for personal or office use. Ethics: The President issued an Executive Order creating the President's Commission on Federal Ethics Law Reform, which submitted its recommendations to the President on March 9. Responding to the Commission's work, the President, on April 12, sent to Congress a sweeping ethics bill and simultaneously issued an Executive Order announcing ethical principles for the conduct of executive branch employees. The President's proposals include: -- Expanded financial disclosure for all three branches of government. 43 -- Deferral of tax liability when an individual is required by his or her agency to divest assets in order to avoid conflicts of interest. -- Strengthened rules against abusing the revolving door for private gain at the expense of the public trust. These rules would also apply for the first time to the legislative branch. -- A 25 percent pay raise for federal judges was proposed Separate in the legislation submitted April 12. On July 7, the President submitted separate legislation calling for pay increases for certain specialized professionals and other senior officials in the executive branch. -- Congressional Honoraria Ban: On July 7, the President also sent to Congress legislation that calls for the elimination of Congressional honoraria by 1991, making the next Congress honoraria-free. This proposal is linked to the enactment by Congress of a pay increase for its Members, and the President will work with Congress toward this end. -- The extension of the federal statute that prohibits employees from taking actions that enhance their own financial interest to cover legislative and judicial branch employees (but not Members of Congress). -- The extension of the Independent Counsel statute to cover the Congress and the creation of an independent, non-partisan Congressional Ethics Office. 44 -- A ban on outside earned income for full-time non-career Presidential appointees in the executive branch, including non-career employees in the immediate White House Office. # # # 1 (Grant) ) August 17, 1989 Draft seven A:sixmonth BUILDING A BETTER AMERICA ACCOMPLISHMENTS OF THE BUSH ADMINISTRATION SUMMARY As the Bush Administration passes the six-month mark, the President has set the agenda on a number of fronts domestically - - from the environment and education to the fight against drugs and crime. The economy is strong, with the current economic expansion continuing to set new records and create new jobs. Meanwhile, America continues to lead in the international arena, after President Bush's success at two multilateral summits paved the way for greater understanding among the allies and improved relations with the Soviet Union and the Eastern Bloc nations. KEEPING THE ECONOMY STRONG O Record expansion: During the current economic expansion -- now in its 80th month as of July -- over 20 million jobs have been created and the unemployment rate has fallen to levels not seen in 15 years. Income levels have risen sharply and growth in industrial output is nearly double that of Western Europe. Consumer price inflation has remained under five percent for the past seven years. 2 Budget agreement: The President has put forth a budget which restrains overall growth of spending and meets the Gramm- Rudman-Hollings targets -- with no new taxes in fiscal year 1990. The President and Congress announced on April 14 a budget plan to reduce the estimated fiscal year 1990 deficit by about $64 billion below fiscal year 1989. Savings and Loans: On August 9, the President signed the Financial Institution Reform, Recovery and Enforcement Act of 1989 to begin solving the savings and loan crisis. The President's plan calls for tough standards to help ensure such a crisis never happens again. Third World debt: The Administration has taken the lead in finding a way to reduce the debt burden and encourage economic growth in developing countries. At the Administration's urging, the IMF and World Bank have set aside funds to support debt reduction programs for developing countries. Capital gains tax cut: The President has sent to the Congress a proposal that would re-establish a capital gains differential to lower the cost of capital, create incentives for investment, make American business more competitive and create new job opportunities. 3 O Minimum wage: The President, by vetoing the excessive across-the-board increase in the minimum wage proposed by Congress, preserved job opportunities for the disadvantaged and blunted the adverse economic impact such a move would have had. International Trade: The Bush Administration successfully broke a stalemate in the Uruguay Round of multilateral trade negotiations and advanced its proposal to correct and prevent trade distortions in agriculture. It is engaged in bilateral trade talks with important trading partners to discuss structural impediments to expanding trade and encourage them to open their markets to our exports. SEIZING INTERNATIONAL OPPORTUNITIES FOR PEACE "Europe Whole and Free": In a series of major speeches, the President outlined a vision of a new Europe --- secure, prosperous, whole and free -- vindicating four decades of Western policies and seizing an historic opportunity to move toward ending the postwar division of Europe. Poland and Hungary: The President signalled his strong support for democratic change in Hungary and Poland by 4 visiting those nations and offering political and moral support as well as economic and trade incentives. Economic Summit: Under President Bush's leadership, the Paris Economic Summit made further progress on key U.S. economic and political objectives such as a strengthened debt strategy, economic policy coordination, completion of the Uruguay Round by December 1990 and international cooperation on protection of the environment. Our political allies agreed to the President's call for "concerted action" in support of Polish and Hungarian economic reforms. "Beyond Containment": The President has responded to great changes in the Soviet Union by moving "beyond containment" to a policy that seeks to integrate the Soviet Union into the community of nations. Arms Control/NATO Summit: At the Brussels Summit, the President captured the imagination of Europe and the world with a bold proposal to reduce conventional forces in Europe. Our NATO partners enthusiastically welcomed the President's leadership and acclaimed his vision of the European future. The President also accelerated the pace of other arms control negotiations with the Soviet Union, with new American initiatives on "open skies," on strategic arms 5 reduction (including early verification measures), and on nuclear testing. The U.S.-Soviet Dialogue: The US-Soviet dialogue on Third World regional conflicts has resumed intensively, and a US- Soviet dialogue has begun on a new range of global problems that require global cooperation, such as terrorism, the environment, and narcotics. China: The President worked to preserve the basic elements of a strategically important relationship while signalling that we cannot condone repression. Central American accord: The President and Congressional leaders agreed on March 24 on a bipartisan strategy for peace and democracy in Central America. Strengthening Our Strategic Deterrent: After a thorough review of U.S. defense strategy, the President submitted to the Congress a defense budget that will modernize our ability to deter war. 6 INVESTING IN OUR FUTURE Education: The President proposed and sent to the Congress a comprehensive education package, The Educational Excellence Act of 1989, which includes seven initiatives -- on merit and magnet schools, alternative certification of teachers, excellence awards for teachers, emergency grants to help urban schools to fight drugs, increased funding for endowments at Historically Black Colleges, and a National Science Scholars program. Natural Gas Deregulation: On July 26, the President signed into law the Wellhead Decontrol Act of 1989, which ends all remaining price controls on natural gas. This will phase out all federal price controls on natural gas by January 1, 1993. Clean Air Act revisions: On July 21, President Bush transmitted to the Congress the first revisions to the Clean Air Act since 1977. His legislation is designed to drastically reduce three major threats to the nation's environment: acid rain, urban air pollution, and toxic air emissions. Hazardous waste: The President announced that he will seek new legislation to ban all exports of hazardous waste unless 7 an agreement already exists with the receiving country to provide for its safe handling. Ozone depletion: In order to prevent further damage to the earth's protective ozone layer, the President has called for a total worldwide phaseout of CFCs by the year 2000, provided safe substitutes are available. Medical Waste: The EPA has begun a tracking system for medical wastes and the Justice Department has started a task force to prosecute those who deliberately dump medical wastes into the Nation's waters -- the first step in a comprehensive program to help keep our beaches clean. The President is committed to end ocean dumping of sewage sludge by 1991. Wetlands: The President is committed to "no net loss of wetlands" and is directing his executive branch agencies, through an interagency task force, to make recommendations to achieve that goal. He has also proposed $206 million in his budget to expand parks and wildlife refuges. Combatting Violent Crime: President Bush transmitted to Congress The Comprehensive Violent Crime Control Act of 1989 proposing measures to augment enforcement and prosecution, 8 strengthen current law, restrict certain semi-automatic weapons, and expand prison capacity. Fighting Drug Abuse: The Administration is requesting over $6 billion in funding for FY 1990 to fight the drug war, increasing outlays by nearly $1 billion for drug education, treatment and enforcement. In September, the President will announce the Administration's new drug strategy and budget. Drug-free Public Housing: The Bush Administration is working to make public housing drug free, and to protect the rights of decent, law-abiding public housing residents. D.C. Anti-Drug Efforts: The Office of National Drug Control Policy has responded to the drug emergency in the District of Columbia by expanding the Metropolitan Area Task Force, working for more prisons, and providing support in enforcement and local treatment efforts. Space: The President announced a three-step commitment to establish America's preeminence in space -- Space Station Freedom, a permanent presence on the Moon, and a manned mission to Mars -- for this and future generations. 9 Transportation: The Department of Transportation has begun a public outreach effort to develop a national transportation policy to move America into the 21st Century. WORKING FOR A KINDER, GENTLER AMERICA Child Care: The President has transmitted to the Congress a child care package, the Working Family Child Care Assistance Act of 1989 which provides a new refundable child care tax credit of up to $1000 per child under age four, for low income working families. This legislation will also make the existing Child and Dependent Care Tax Credit refundable, and does not discriminate against religious or family-based child care or a parent who chooses not to work outside the home. Head Start: The President has also transmitted legislation to Congress that would allow a $250 million increase in Head Start FY 90 appropriations. This will pay for enrollment of up to 95,000 more four-year-olds in the program. National Service: The President is spearheading a movement to call all Americans to national service. He has announced the formation of a foundation known as the Points of Light Initiative to identify, enlarge and duplicate those 10 community service initiatives that are working and to discover and encourage new leaders. Welfare Reform: The Administration issued proposed rules on April 18 to implement the major provisions of the Family Support Act of 1988, as the next step in welfare reform. The Administration is proposing to spend $3.6 billion over the next five years to implement the JOBS program. The Act will help reduce the number of individuals who need welfare. Medicaid: To address the all-too-high infant mortality rate, the Administration forwarded to Congress legislation to improve federal Medicaid assistance to pregnant women, infants and children. Homelessness: President Bush has called for full funding of the McKinney Homeless Assistance Act and for a new $50 million matching grant program to promote public/private partnerships to assist homeless families and the mentally ill. Enterprise Zones: President Bush asked Congress to enact labor and capital-based incentives -- through enterprise zones -- to create jobs and entrepreneurial activity in our most distressed communities. 11 Campaign Finance Reform: On June 29, the President announced comprehensive campaign finance proposals designed to lessen the power of special economic interests and restore real competition to American Congressional elections. Civil Rights: The President has called upon Congress to reauthorize the Commission on Civil Rights and is committed to seek legislation extending civil rights protections to disabled Americans. The Administration has endorsed the Hate Crimes Bill which provides for the collection of data about crimes motivated by race, religion, or ethnicity. The Civil Rights Division of the Department of Justice has vigorously pursued the enforcement of the Fair Housing Amendments Act of 1988 which became effective in March. Ethics: President Bush sent his ethics reform legislation, The Government-Wide Ethics Act, to the Congress on April 12, and he issued an Executive Order announcing ethical principles for the conduct of executive branch employees. Whistleblower Protection: On April 10, the President signed S. 20, the "Whistleblower Protection Act of 1989." " This law will strengthen the protections and procedural rights available to those federal employees who report misdeeds and mismanagement. THE WHITE HOUSE WASHINGTON August 14, 1989 MEMORANDUM FOR CHRISS WINSTON FROM: ROGER B. PORTER RBP SUBJECT: Six Months of the Bush Administration (draft) We have the following comments on the Six Months of the Bush Administration draft. 1. Under the section "Keeping the Economy Strong", I urge the following changes. p.1 First bullet: August will not mark the longest economic expansion in U.S. history. The 1960s expansion, which lasted some 106 months, will still be the longest. The bullet can be recrafted to read, "The current expansion continues to be the longest peacetime expansion on record.' p.2 First bullet: Industrial output has risen more than 44 percent since the recovery began in November, 1982. come Second bullet: Change "business" in the last sentence to "real non-residential". Some residential invest- ment is business investment (rental housing, for example). p.3 First bullet: Consumer price inflation in the past 12 months has been over 5 percent. I therefore suggest recrafting the first sentence to read, "Consumer price inflation has remained under five percent in each of the seven years from 1982 through 1988..." First bullet: The words, "consistent with sustained economic growth" should be added to the end of the last sentence. That is the official line. p.4 First full paragraph: In general, we have tried to deemphasize the money being spent and emphasize the long term solution to the FSLIC problem. I suggest a Insert rewording based on the Treasury Department's language: "The Act assures that the long developing problems in our savings industry will never happen again. It significantly reforms the regulation of the thrift -2- industry and separates the chartering of institutions from the insurance of deposits. It establishes strict new guidelines to assure the solvency of thrift insti- tutions in the future, including new capital require- ments, and sets stiff penalties for wrongdoing by the officers of insured institutions. Further, the act establishes new agencies to remedy existing problems in the thrift industry and authorizes funds to finance the restructuring of insolvent institutions." 2 The discussion of the "Americans with Disabilities Act" at page 39, should be referenced initially at page 10. 3. Over and over again in the context of National Service the term "recreate" is used where it is clear that the idea being expressed is "replicate" (see pages 9 and 30). Of course, replicate is not a great word to use in a document like this. Perhaps "duplicate" or "copy" would be better, or maybe someone has another suggestion? 4. At page 24, the date of transmittal of the crime legisla- tion to the Hill was June 15, 1989, not May 15, 1989. 5. In the minor edit category, at page 8, line 3, the modifier is "off". I assume we want to protect all the decent, law- abiding public housing residents, not simply most of them. I think what was intended was to indicate that a majority of public housing residents are law-abiding and that we want to protect all such residents. 6. Insert the following bullet after the "Improved Forecast- ing:" bullet on page 23 of the draft: O Ban on African Elephant Ivory: On June 9, the want Administration announced an importation ban of African elephant ivory into the United States, making importa- tion from any country illegal. The ban covers both commercial and non-commercial shipments. 7. I recommend that the draft be changed as indicated on pages 5 and 6 of the attachment: -- The change on page 5 is needed to clarify the Admini- stration's debt strategy. -- The change on page 6 would strengthen the section on international trade by adding a statement on recent changes to better deal with EC-1992. It has created - high level interopency group to assure that U.S. tade and suve start interest to are addressed as the European community works to create 6 a single market by 1992 Congress would have had an adverse economic impact and cut job opportunities drastically. Accordingly, the President vetoed the bill, passed by Congress. The veto was later sustained. International Trade: The Administration is forcefully promoting the opening of world markets. It successfully broke a stalemate in the Uruguay Round's mid-term review and put in place a framework, agreed to by the 96 member nations, to correct and prevent trade distortions in agriculture. It is engaged in bilateral trade talks with important trading partners to encourage them to open their markets to our exports. Together these efforts should greatly expand opportunities for U.S. exports. Steel imports: The President initiated a two-and-a-half year Steel Trade Liberalization Program designed to phase out, in a responsible and orderly manner, the Voluntary Restraint Arrangements (VRA's) that currently limit steel imports into the U.S. and to negotiate an international consensus to address trade-distorting practices. Agricultural initiatives: The Administration has announced additional advance deficiency payments of 10 percent available to producers of wheat, feed grains, rice and upland cotton. In addition, a top-level Working Group on 5 to promote investment, growth, and the return of flight capital to these countries. The recent agreement between Mexico and commercial banks with its emphasis on debt and debt service reduction attests to the viability of the Administration's plan for resolving the LDC (less developed countries) debt problem and of developing should lead to similar agreements with other heavily indebted countries. Capital gains tax rate cut: A lower tax rate for long-term capital gains is a key element of President Bush's economic program. It will reduce the cost of capital in the United States, create incentives for investment and increase job opportunities for Americans. The President's proposal, which has been sent to Congress, includes: -- A 45 percent capital gains exclusion for qualified capital gains, or a 15 percent maximum capital gains tax rate at the taxpayer's option. -- A phased-in increase in the qualifying holding period from one year to three years. -- An exemption from the capital gains tax for families earning under $20,000. Minimum wage proposal: The President believes in keeping job opportunities available for youth and for those seeking to enter the economic mainstream. The excessive across-the- board increase in the minimum wage which was proposed by