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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: 13516 Folder ID Number: 13516-001 Folder Title: Cincinnati Chamber of Commerce 1/12/90 [OA 4390] [1] Stack: Row: Section: Shelf: Position: G 25 6 7 1 THE WHITE HOUSE WASHINGTON FACSIMILE TRANSMITTAL SHEET NUMBER OF PAGES INCLUDING COVER 15 DATE 1/12 TO Frank Brown FAX NUMBER 513/241-7126 OFFICE NUMBER COMMENTS Chamber of Commerce Speech FROM Stephanie Raudner FAX NUMBER 202/456-6218 OFFICE NUMBER 202/ 456 - 2930 CINCINNATI CHAMBER OF COMMERCE HYATT REGENCY BALLROOM, CINCINNATI FRIDAY, JAN. 12, 1990, 2:20 P.M. THANK YOU, JOE [CHEAD, CHAIRMAN]] FOR THOSE KIND WORDS. AND THANK YOU ALL, FOR YOUR WARM GREETING. I'M PLEASED THAT CINCINNATI'S CONGRESSMEN, BILL GRADISON AND TOM LUKEN, WERE ABLE TO JOIN ME IN FLYING OUT HERE TODAY. AND IT'S ALWAYS GOOD TO SEE [[STATE]] SENATOR STAN ARONOFF [[AIR-NOFF]], COMMISSIONER BOB TAFT, AND MAYOR CHARLES LUKEN. WE'RE PLEASED TO BE BACK IN CINCINNATI. ACTUALLY, I WAS HOPING TO GET OUT HERE FOR THE REDS' OPENING DAY. BUT THEY TELL ME I'M THREE MONTHS TOO EARLY. SAME PROBLEM I RAN INTO ON PEARL HARBOR DAY. IIII AND CINCINNATI MUST BE VERY PROUD TO HAVE ANOTHER MEMBER OF THE BIG RED MACHINE JOIN JOHNNY BENCH IN THE HALL OF FAME -- MY FRIEND JOE MORGAN. IIII - 2 - IT IS FITTING THAT, IN THE DAYS LEADING UP TO THE STATE OF THE UNION ADDRESS, WE SHOULD MEET AGAIN IN CINCINNATI. THE LAST TIME I VISITED WAS IN NOVEMBER 1988, IN THE FINAL DAYS OF THE PRESIDENTIAL CAMPAIGN. AND EARLIER, CINCINNATI WAS ONE OF MY LAST STOPS BEFORE THE CONVENTION IN NEW ORLEANS. ON THE TRIP BEFORE THAT WE SPENT A MORNING AT PROCTOR AND GAMBLE'S R & D FACILITY. THEY TAUGHT ME A TRICK EVERY PRESIDENT SHOULD KNOW: HOW TO PUT TOOTHPASTE BACK INTO THE TUBE. IIII ALL IN ALL I CAME HERE FOUR TIMES DURING THE PRESIDENTIAL CAMPAIGN. I TALKED OF AMERICA'S FUTURE, AND OF FUTURE GENERATIONS. I TALKED OF CERTAIN PRINCIPLES. TOLD YOU I WAS READY TO MAKE THE TOUGH CALLS -- AND TO TAKE THE HEAT. AND TODAY I'VE COME BACK TO CINCINNATI TO TELL YOU I'M READY TO MAKE GOOD ON THAT PLEDGE. BECAUSE UP ON CAPITOL HILL SOME IMPORTANT BUSINESS REMAINS UNFINISHED, PROMISES HAVE GONE UNFULFILLED. - 3 - WE SENT RESPONSIBLE PROPOSALS TO CONGRESS IN FOUR OF AMERICA'S MOST CRITICAL AREAS: CAPITAL GAINS. AMERICA'S CHILDREN. CLEAN AIR. AND COMBATTING CRIME. IN SOME CASES, OUR PROPOSALS HAVE BEEN UNDER CONSIDERATION WITH CONGRESS FOR THE BETTER PART OF A YEAR. AND THESE FOUR ISSUES ARE BOGGED DOWN IN THE JUNGLES OF CAPITOL HILL. THE CLOCK IS RUNNING. AMERICA'S PATIENCE IS RUNNING OUT. AMERICA WANTS IT DONE RIGHT. AMERICA WANTS IT DONE RESPONSIBLY. AND AMERICA WANTS IT DONE NOW. IIII THESE FOUR INITIATIVES REPRESENT ONLY PART OF THE WAY IN WHICH THE EVENTS OF 1989 WILL AFFECT THE COMING YEAR. WE'VE SEEN A LOT OF EXHILARATING CHANGES IN RECENT MONTHS THAT OFFER NEW HOPE FOR WORLD PEACE. - 4 - WE LIKE WHAT'S HAPPENING IN CENTRAL EUROPE. BUT JUST AS IT WOULD HAVE BEEN IMPOSSIBLE -- SIX MONTHS AGO -- TO PREDICT THOSE THUNDEROUS CHANGES, IT'S IMPOSSIBLE TODAY TO KNOW WHAT WILL UNFOLD IN THE NEXT SIX MONTHS -- LET ALONE THE NEXT SIX YEARS. BUT IN THIS WORLD OF CHANGE, ONE THING IS CERTAIN: AMERICA MUST BE READY. AMERICA MUST BE STRONG. AND A STRONG AMERICA MEANS NOT ONLY A STRONG ECONOMY. IT ALSO MEANS A STRONG DEFENSE -- A READY AND HIGHLY EFFECTIVE DEFENSE FORCE. III AND IF PROOF OF THAT WERE EVER NEEDED -- WE SAW IT LAST MONTH IN THE COURAGE OF OUR TROOPS IN PANAMA. YET SOME THINK ALL THE ANSWERS TO THIS YEAR'S PROBLEMS CAN BE FOUND BY SPENDING WHAT THEY ARE CALLING IN WASHINGTON A "PEACE DIVIDEND." THAT'S LIKE THE NEXT-OF-KIN WHO SPEND THE INHERITANCE BEFORE THE WILL IS READ. 1111 - 5 - UNFORTUNATELY, WHAT IS BEING PACKAGED AS A "DIVIDEND," IS NOT MONEY IN THE BANK. IT IS MORE LIKE A POSSIBLE FUTURE INHERITANCE. A LEGACY THAT WILL ENABLE US TO PASS ON A BETTER WORLD TO OUR CHILDREN. AND LIKE AN INHERITANCE, IT IS A SPECIAL GIFT, A LEGACY NOT ONLY OF PROSPERITY BUT ALSO SECURITY, EARNED BY THE HARD WORK AND SACRIFICE OF THOSE WHO CAME BEFORE. OF COURSE, WHENEVER A POTENTIAL INHERITANCE LOOMS THERE ARE THOSE EAGER TO RUSH OUT AND SQUANDER IT -- TO BUY NEW THINGS, TO SPEND, SPEND, SPEND -- SPENDING FUNDS THEY DON'T YET HAVE. THEN THE BILLS START COMING. AND THE INHERITANCE MAY NOT. AND WHAT WAS PROMISED AS A BONUS BECOMES A BURDEN. IN WASHINGTON, THAT BURDEN COMES IN THE FORM OF A NEW SPENDING PROGRAM. THAT'S NOT GOING TO HAPPEN. 11 BECAUSE MOST AMERICANS KNOW WE NOT ONLY MUST MAINTAIN OUR DEFENSES, BUT STILL MUST REDUCE THE DEFICIT. 11 REDUCING THE DEFICIT ISN'T JUST A GOOD IDEA. IT'S WHAT THE AMERICAN PEOPLE WANT. AND IT'S THE LAW. - 6 . THE WAY TO REDUCE THE DEFICIT IS TO RESTRAIN SPENDING GROWTH AND CONTINUE ECONOMIC GROWTH. IT'S NOT THE TIME, AS SOME LIKE TO SAY, TO RAISE YOUR TAXES. THE NEW BUDGET MUST MEET GRAMM-RUDMAN REQUIREMENTS. IT MUST REDUCE BARRIERS TO ECONOMIC GROWTH. IT MUST KEEP INTEREST RATES LOW. BECAUSE THE BEST ANTI-POVERTY PROGRAM IS A GOOD JOB. AND THE BEST JOBS PROGRAM IS A SOUND ECONOMY. III A SOUND ECONOMY IS A COMPETITIVE ECONOMY. AND TO KEEP AMERICA COMPETITIVE, TO FUEL OUR CONTINUING BOOM, WE ALSO NEED AN INFUSION OF NEW VENTURE CAPITAL. THAT'S WHY WE NEED WHAT A MAJORITY IN BOTH HOUSES OF CONGRESS HAS ALREADY VOTED FOR: A TAX CUT ON CAPITAL GAINS. 1111 AS THE WORLD TURNS TO FREER MARKETS, THIS IS NO TIME TO BECOME WISHY-WASHY ABOUT WHERE AMERICA STANDS. THE JURY IS NO LONGER OUT. MARKETS WORK. GOVERNMENT CONTROLS DON'T. III - 7 - AND SINCE THE DEBATE HAS ALL BUT ENDED ON THIS ISSUE, PERHAPS OUR MOST DIE-HARD IDEOLOGUES CAN NOW TURN THEIR ATTENTION TO THE REAL QUESTION THAT DIVIDES AMERICA: 11 IS IT TEXAS OR CINCINNATI THAT PRODUCES THE WORLD'S BEST CHILI? III OF COURSE ... THIS ALSO IS A QUESTION TO BE DECIDED BY THE MARKET. 11 THE ECONOMIC CHALLENGE OF THE 90'S IS TO MAKE MARKETS WORK BETTER. AND ONE OF THE BEST WAYS A GOVERNMENT CAN DO THAT IS TO DO WHAT PEOPLE AROUND THE WORLD ARE ASKING THEIR GOVERNMENTS TO DO: GET OUT OF THE WAY! III IT WORKS. HERE AT HOME, WE'RE IN THE MIDST OF THE LONGEST PEACETIME ECONOMIC EXPANSION IN OUR NATION'S HISTORY, AN 86-MONTH EXPANSION THAT HAS CREATED AN ASTONISHING 20 MILLION NEW JOBS SINCE 1982. THAT'S DUE TO THE GENIUS OF PLACES LIKE CINCINNATI -- AND THE SOLID AMERICAN VALUES THAT HAVE FLOURISHED HERE AND INSPIRED THE WORLD FROM CENTRAL EUROPE TO CENTRAL AMERICA. - 8 - THE WHOLE WORLD IS WATCHING. AND THE WHOLE WORLD IS READY. THE HEADLINES TELL OF OTHER NATIONS BUYING AMERICA. THAT'S GOOD NEWS -- NOT BAD. WE'VE BEEN URGING OUR OWN PEOPLE TO "BUY AMERICA" FOR YEARS -- TO INVEST IN THE GREATEST JOB-CREATING MACHINE OF THE 20TH CENTURY. AND IT'S NO SURPRISE THE WORLD'S INVESTORS ARE FOLLOWING SUIT. THE RESULTS ARE IN: AMERICA IS THE CHOICE. WE DON'T HAVE TO LOOK ELSEWHERE TO KNOW WHAT WORKS. IF YOU WANT TO FOLLOW THE SMART MONEY ADVICE OF THE 1990'S, GO TO WHERE THE JAPANESE OR THE EUROPEANS ARE GOING. LOOK AT THE U.S.A. LOOK AT WHAT THE REST OF THE WORLD CALLS "THE AMERICAN MIRACLE." YOU SAW IT HAPPEN HERE IN CINCINNATI U.S.A., "THE BLUE CHIP CITY," WHERE 150,000 MORE PEOPLE ARE AT WORK THAN WERE WORKING SIX YEARS AGO. CINCINNATI PRODUCED ITS MIRACLE THE OLD-FASHIONED WAY -- THE AMERICAN WAY. - 9 - IT'S AN OLD TRADITION HERE. WHEN HE FIRST OPENED HIS SLAUGHTERHOUSE IN 1810, RICHARD FOSDICK WAS WARNED THAT MEAT COULDN'T BE CURED IN CINCINNATI'S CLIMATE. BUT HE DIDN'T KNOW THAT IT COULDN'T BE DONE. HE CONTINUED HIS EXPERIMENTS UNTIL HE DISCOVERED THE ROCK-SALT PROCESS FOR CURING MEAT -- AND MADE THIS CITY THE PRINCIPAL HOG MARKET OF THE WORLD. RENEWING OUR EMPHASIS ON INNOVATION IS ONE OF THE WAYS MODERN CINCINNATI HAS PROSPERED. YOU'VE ALSO BUILT A DIVERSE ECONOMIC BASE. STRIPPED AWAY CORPORATE FAT. RENEWED OUR EMPHASIS ON QUALITY -- FORTUNE SAYS CINCINNATI MAKES SOME OF THE BEST JET ENGINES IN THE WORLD. 11 ULTIMATELY, THESE ARE THE KIND OF EFFORTS THAT WILL DETERMINE HOW AMERICA FARES IN THE COMPETITIVE, FREE-TRADE WORLD OF THE 1990'S. THE WAY OF THE FUTURE IS FREE PEOPLE. THE WAY OF THE FUTURE IS FREE TRADE. AND FREE PEOPLE AND FREE TRADE IS WHAT AMERICA IS ALL ABOUT. III OF COURSE, IT'S NOT ENOUGH THAT TRADE BE "FREE." - 10 - IT'S ALSO GOT TO BE FAIR. III WE'VE GOT TO REMOVE BARRIERS TO AMERICAN GOODS AND SERVICES. A GLOBAL GAME IS AFOOT, A GAME IN WHICH A CINCINNATI BUSINESSMAN CAN NOW FLY NON-STOP TO LONDON AND FRANKFURT -- ANY DAY OF THE WEEK. IF THE RULES ARE FAIR AND THE SAME FOR EVERYBODY -- WE CAN PLAY THIS GAME. IT'S CALLED "FREE ENTERPRISE." AND AMERICA IS THE FREE ENTERPRISE CAPITAL OF THE WORLD. III WINNING IN THE COMPETITIVE 90'S WILL TAKE MORE THAN INVESTING IN PRODUCTS. WE MUST ALSO INVEST IN PEOPLE. THAT MEANS OFFERING EVERY AMERICAN CHILD AN EDUCATION SECOND TO NONE. OUR "EDUCATIONAL EXCELLENCE ACT" REMAINS A PRIORITY OF MY ADMINISTRATION -- SENT TO CONGRESS ALMOST NINE MONTHS AGO. IT CALLS FOR CHOICE, FLEXIBILITY, AND ACCOUNTABILITY. THE TIME FOR STUDY IS PAST AND THE TIME FOR ACTION IS NOW. - 11 - YOU IN CINCINNATI HAVE ACTED, WORKING TO EDUCATE AND TRAIN OUR PEOPLE FOR THE 21ST CENTURY. THREE YEARS AGO BUSINESS, EDUCATIONAL, AND COMMUNITY LEADERS HERE CAME TOGETHER TO TAKE ON A MIGHTY TASK: REDUCE THE NUMBERS OF STUDENTS AT RISK -- THE STAGGERING 40 PERCENT DROPOUT RATE IN CINCINNATI'S PUBLIC SCHOOLS. THE RESULT WAS THE CINCINNATI YOUTH COLLABORATIVE -- AN INTENSIVE PEOPLE-TO-PEOPLE "MENTORING" PROGRAM THAT MANY OF YOU SUPPORT, AND THAT HAS ALREADY SEEN SOME EARLY SUCCESS. IT HAS AMERICA TALKING. YOUR GOVERNOR VISITED ONE OF THE PARTICIPATING CLASSROOMS AT MCKINLEY PRE-SCHOOL BEFORE COMING OUT TO THE EDUCATION SUMMIT I HOSTED IN VIRGINIA LAST FALL. AND EARLIER TODAY I HAD AN OPPORTUNITY TO SEE THE TREMENDOUS PROGRAMS AT TAFT HIGH SCHOOL FIRSTHAND. - 12 - THERE ARE OTHER MATTERS THAT REQUIRE URGENT ATTENTION WHEN CONGRESS GETS BACK LATER THIS MONTH. OUR CLEAN AIR ACT PROPOSALS RECOGNIZE THAT IN THE EMERGING GLOBAL ECONOMY, ENVIRONMENTAL DESTRUCTION KNOWS NO BORDERS -- AND THAT A HEALTHY ECONOMY GOES HAND IN HAND WITH A HEALTHY ENVIRONMENT. AND A KINDER, GENTLER ENVIRONMENT ALSO MEANS A SOCIETY WHERE EVERY MAN, WOMAN AND CHILD CAN LIVE AND PROSPER IN AN ENVIRONMENT FREE FROM FEAR. THAT MEANS FREEDOM FROM CRIME, AND ESPECIALLY THE INCREASINGLY VIOLENT CRIME THAT'S BEEN SPAWNED BY DRUG ABUSE AND TRAFFICKING. ON OUR ANTI-CRIME PACKAGE AS WELL, IT'S TIME FOR CONGRESS TO ACT. 11 THERE IS MUCH TO BE DONE IN THE MONTHS AHEAD. BUT AS A NEW YEAR BEGINS, AMERICANS SHOULD ALSO PAUSE TO TAKE SOME PRIDE IN WHAT WE HAVE ACCOMPLISHED TOGETHER. LET ME SUGGEST TWO AREAS. - 13 - AT HOME, MORE THAN ANYTHING ELSE, A KINDER, GENTLER NATION IS ONE IN WHICH EVERYONE WHO WANTS A JOB, HAS A JOB. AND TODAY AMERICA HAS THE LOWEST UNEMPLOYMENT RATE SINCE 1973 -- AND OHIO HAS REACHED ITS HIGHEST EMPLOYMENT LEVEL IN HISTORY. III ABROAD, FOR MORE THAN 40 YEARS, THREE GENERATIONS OF AMERICANS HAVE STOOD STEADFAST IN AN OFTEN HOSTILE AND TUMULTUOUS WORLD. FIRM IN OUR BELIEF IN AMERICA'S DESTINY AS LEADER OF THE FREE WORLD, OUR SPIRIT DID NOT FALTER, OUR TROOPS DID NOT FLINCH. AND TODAY, AFTER THE WATERSHED EVENTS OF 1989, THE FREE WORLD WE'RE LEADING IS GROWING BIGGER ALL THE TIME. IN THE PAST MONTH WE SAW DEMOCRACY RESTORED TO THE BRAVE PEOPLE OF PANAMA. WE SAW THE POWERFUL BROUGHT BEFORE THE BAR OF JUSTICE. AND WE TOOK PRIDE IN THE SKILL, COURAGE AND SACRIFICE OF AMERICAN SOLDIERS. - 14 - THE PANAMANIAN OPERATION WAS CONDUCTED BY HIGHLY TRAINED TROOPS -- THE BEST TRAINED TROOPS IN THE WORLD. BUT IT IS NOT SIMPLY TRAINING -- IT IS PATRIOTISM AND DEDICATION. I WENT TO TWO HOSPITALS IN SAN ANTONIO AND TALKED TO SOME OF OUR WOUNDED. I WILL NEVER, EVER FORGET THEIR SPIRIT. ONE SEVERELY WOUNDED KID SAID TO ME: MY ONLY REGRET IS I'M HERE -- NOT THERE WITH THE OTHERS. 1111 PRIDE IN AMERICA HAS NEVER BEEN HIGHER. AND SOMEHOW, IT SEEMS MORE THAN A COINCIDENCE: IN THE SAME MONTH, WE HEAR THAT THE BALD EAGLE -- THE AMERICAN EAGLE -- MAY SOON COME OFF THE ENDANGERED SPECIES LIST. 11 LADIES AND GENTLEMEN -- AMERICA IS BACK. 11 AND THIS TIME, AMERICA IS BACK TO STAY. III THANK YOU. GOD BLESS YOU. GOD BLESS CINCINNATI. AND GOD BLESS AMERICA! # # # AC HAS SEEN 1/10 THE WHITE HOUSE LIOV.S- WASHINGTON This is a final draft 1/10 Andy 8:40Pm January 10, 1990 INFORMATION MEMORANDUM FOR THE PRESIDENT THROUGH: CHRISS WINSTON CW FROM: EDWARD McNALLY can SUBJECT: CINCINNATI CHAMBER OF COMMERCE ADDRESS I. SUMMARY Attached are draft remarks for Friday's speech, a "major address" on the economy at the Cincinnati Chamber of Commerce. II. DISCUSSION At 2:20 p.m. on Friday, January 12, 1990, you are scheduled to arrive onstage in the Ballroom of the Hyatt Hotel in Cincinnati to address a gathering estimated at 1,500 people. It is not a luncheon, nor are there any other speakers. Billed as a "major," pre-State of the Union address on the economy, the remarks will be prepared for TelePrompter and are expected to be about 15 minutes in length. The remarks track your comments at the RNC last week and at the Farm Bureau Monday, calling on Congress to address some "unfinished business" -- capital gains, crime control, clean air, and education. The speech also includes remarks to defuse the recent euphoria over how to spend the so-called "peace dividend,' notes the continuing good health of the American economy, and urges improvements in market choices and education (as well as the capital gains cut) to keep America competitive in the 90's. McNally/Simon January 10, 1990 Draft Five (B:OHIO) PRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE HYATT REGENCY BALLROOM, CINCINNATI FRIDAY, JAN. 12, 1990, 2:20 P.M. [[ACKNOWLEDGEMENTS]] We're pleased to be back in Cincinnati. Actually, I was hoping to get out here for the Reds' Opening Day. But they tell me I'm three months too early. Same problem I ran into on Pearl Harbor Day. It is fitting that, in the days leading up to the State of the Union Address, we should meet again in Cincinnati. The last time I visited was in November 1988, in the final days of the Presidential campaign. And earlier, Cincinnati was one of my last stops before the convention in New Orleans. On the trip before that we spent a morning at Proctor and Gamble's R & D facility. They taught me a trick every President should know: How to put toothpaste back into the tube. All in all I came here four times during the Presidential campaign. I talked of America's future, and of future generations. I talked of certain principles. Told you I was ready to make the tough calls -- to use the veto where principle was involved -- and to take the heat. And today I've come back to Cincinnati to tell you I'm ready to make good on that pledge. Because up on Capitol Hill some important business remains unfinished, promises have gone unfulfilled. 2 We sent responsible proposals to Congress in four of America's most critical areas: Capital gains. America's Children. Clean Air. And Combatting crime. In some cases, our proposals have been under consideration with Congress for the better part of a year. And these four issues have become MIA's --Missing In Action in the jungles of Capitol Hill. The clock is running. America's patience is running out. America wants it done right. America wants it done responsibly. And America wants it done now. And if it's not done right -- it will be sent back. That doesn't mean a fight. But it does mean a veto. These four initiatives represent only part of the way in which the events of 1989 will affect the coming year. We've seen a lot of exhilarating changes in recent months that offer hope for ending the Cold War. But we're not over the top yet Some think all the answers to this year's problems can be found by spending what they are calling in Washington the "peace dividend." That's like the next-of-kin who spend the inheritance before the will is read. We like what's happening in Central Europe. But just as it would have been impossible -- six months ago -- to predict those thunderous changes, it's impossible today to know what will unfold in the next six months -- let alone the next six years. 3 But in this world of change, one thing is certain: America must be ready. America must be strong. And a strong America means not only a strong economy. It also means a strong defense. And if proof of that were ever needed -- we saw it last month in the courage of our troops in Panama. The "peace dividend," to the extent there is a dividend, is not like money in the bank. It is more like a possible future inheritance. A legacy that will enable us to pass on a better world to our children. And like an inheritance, it is a special gift, a legacy not only of prosperity but also security, earned by the hard work and sacrifice of those who came before. of course, whenever an inheritance looms there are those eager to rush out and squander it -- to buy new things, to spend, spend, spend -- spending funds they don't yet have. Then the bills start coming. And what was promised as a bonus becomes a burden. In Washington, that burden comes in the form of a new spending program. And soon they have to say: "It's Time to Raise Your Taxes." That's not going to happen. Because most Americans know we still must reduce the deficit. Reducing the deficit isn't just a good idea. It's what the American people want. And it's the law. The was to reduce the deficit is to restrain na spending growth and continue economic growth. The new budget must meet Gramm-Rudman requirements. It must It's not reduce barriers to economic growth. It must keep interest rates the time, as some low. Because the best anti-poverty program is a good job. And like to say to the best jobs program is a sound economy. raise your taxes. 4 A sound economy is a competitive economy. And to keep America competitive, to fuel our continuing boom, we also need an infusion of new venture capital. That's why we need what a majority in both Houses of Congress has already voted for: A tax cut on capital gains. As the world turns to freer markets, this is no time to become wishy-washy about where America stands. The jury is no longer out. Markets work. Government controls don't. And since the debate has all but ended on this issue, perhaps our most die-hard ideologues can now turn their attention to the real question that divides America: Is it Texas or Cincinnati that produces the world's best chili? of course this also is a question to be decided by the market. The economic challenge of the 90's is to make markets work better. And one of the best ways a government can do that is to do what people around the world are asking their governments to do: Get out of the way! It works. Here at home, we're in the midst of the longest peacetime economic expansion in our nation's history, an 86-month expansion that has created an astonishing 20 million new jobs since 1982. That's due to the genius of places like Cincinnati -- and the solid American values that have flourished here and inspired the world from Central Europe to Central America. The whole world is watching. And the whole world is ready. 5 The headlines tell of other nations buying America. That's good news -- not bad. We've been urging our own people to "Buy America" for years -- to invest in the greatest job-creating machine of the 20th Century. And it's no surprise the world's investors are following suit. The results are in: America is the choice. We don't have to look elsewhere to know what works. If you want to follow the smart money advice of the 1990's, go to where the Japanese or the Europeans are going. Look at the U.S.A. Look at what the rest of the world calls "the American miracle." You saw it happen here in Cincinnati U.S.A., "The Blue Chip City," where 150,000 more people are at work than were working six years ago. Cincinnati produced its miracle the old-fashioned way -- the American way. It's an old tradition here. When he first opened his slaughterhouse in 1810, Richard Fosdick was warned that meat couldn't be cured in Cincinnati's climate. But he didn't know that it couldn't be done. He continued his experiments until he discovered the rock-salt process for curing meat -- and made this city the principal hog market of the world. Renewing our emphasis on innovation is one of the ways modern Cincinnati has prospered. You've also built a diverse economic base. Stripped away corporate fat. Renewed our emphasis on quality -- Fortune says Cincinnati makes some of the best jet engines in the world. 11 Ultimately, these are the kind of efforts that will determine how America fares in the competitive, free-trade world 6 of the 1990's. The way of the future is free people. The way of the future is free trade. And free people and free trade is what America is all about. of course, it's not enough that trade be "free." It's also got to be fair. We've got to remove barriers to American goods and services. A global game is afoot, a game in which a Cincinnati businessman can now fly non-stop to London and Frankfurt --- any day of the week. If the rules are fair and the same for everybody -- we can play this game. It's called "free enterprise." And America is the free enterprise capital of the world. Winning in the competitive 90's will take more than investing in products. We must also invest in people. That means offering every American child an education second to none. Our "Educational Excellence Act" remains a priority of my Administration -- sent to Congress almost nine months ago. It calls for choice, flexibility, and accountability. The time for study is passed and the time for action is now. You in Cincinnati have acted, working to educate and train our people for the 21st Century. Three years ago business, educational, and community leaders here came together to take on a mighty task: reduce the numbers of students at risk -- the staggering 40 percent dropout rate in Cincinnati's public schools. 7 The result was the Cincinnati Youth Collaborative -- an intensive people-to-people "mentoring" program that many of you support, and that has already seen some early success. It has America talking. Your Governor visited one of the participating classrooms at McKinley Pre-school before coming out to the Education Summit I hosted in Virginia last fall. And earlier today I had an opportunity to see the tremendous programs at Taft High School firsthand. There are other matters that require urgent attention when Congress gets back later this month. Our Clean Air Act proposals recognize that in the emerging global economy, environmental destruction knows no borders -- and that a healthy economy goes hand in hand with a healthy environment. And a kinder, gentler environment also means a society where every man, woman and child can live and prosper in an environment free from fear. That means freedom from crime, and especially the increasingly violent crime that's been spawned by drug abuse and trafficking. On our anti-crime package as well, it's time for Congress to act. There is much to be done in the months ahead. But as a new year begins, Americans should also pause to take some pride in what we have accomplished together. Let me suggest two areas. At home, more than anything else, a kinder, gentler nation is one in which everyone who wants a job, has a job. And today America has the lowest unemployment rate since 1973 -- and Ohio has reached its highest employment level in history. 8 Abroad, for more than 40 years, three generations of Americans have stood steadfast in an often hostile and tumultuous world. Firm in our belief in America's destiny as leader of the free world, our spirit did not falter, our troops did not flinch. And today, after the watershed events of 1989, the free world we're leading is growing bigger all the time. In the past month we saw democracy restored to the brave people of Panama. We saw the powerful brought before the bar of justice. And we saw experienced pride in the skill, courage and sacrifice of American soldiers. And somehow, it seems more than a coincidence. Because in that same month, we hear that the Bald Eagle -- the American Eagle -- may soon come off the endangered species list. Ladies and gentlemen -- America is back. And this time, America is back to stay. Thank you. God bless you. And God bless Cincinnati! # # # 103015SS Document No. 0187 WHITE HOUSE STAFFING MEMORANDUM 1/9/90 4:00 PM, WED., JAN 10 DATE: ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE HYATT REGENCY BALLROOM SUBJECT: CINCINNATI, OHIO FRIDAY, JANUARY 12, 1990 1:30 PM ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROET PORTER DARMAN ROGICH BATES UNTERMEYER CARD BOSKIN CICCONI DELAND DEMAREST BENNETT FITZWATER ROGERS PINKERTON GRAY WINSTON HAGIN WRAY REMARKS: ANDERSON Please provide comments/edits directly to Chriss Winston, Rm. 122, x2930 no later than 4:00 PM, WEDNESDAY, JANUARY 10, with a copy to my office. Thank you. RESPONSE: January 10, 1990 NSC staff concurs with changes indicated. 12 : 8d 01 030 68 Brent Bate for Scowcroft 53 James W. Cicconi Assistant to the President and Deputy to the Chief of Staff CC: Jim Cicconi Ext. 2702 RECEIVED 45:89 01 033 80 90 JAN 10 A8: 23 McNally/Simon January 9, 1990 Draft Four (B:OHIO) 1990 JAN PRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE> HYATT REGENCY BALLROOM, CINCINNATI FRIDAY, JAN. 12, 1990, 1:30 P.M. 8: [[ACKNOWLEDGEMENTS]] We're pleased to be back in Cincinnati. Actually, I was hoping to get out here for the Reds' Opening Day. But they tell me I'm three months too early. Same problem I ran into on Pearl Harbor Day. It is fitting that, in the days leading up to the State of the Union Address, we should meet again in Cincinnati. The last time I visited was in November 1988, in the final days of the Presidential campaign. And earlier, Cincinnati was one of my last stops before the convention in New Orleans. On the trip before that we spent a morning at Proctor and Gamble's R & D facility. They taught me a trick every President wants to know: How to put toothpaste back into the tube. All in all I came here four times during the Presidential campaign. I talked of America's future, and of future generations. I talked of certain principles. Told you I was ready to make the tough calls -- to use the veto where principle was involved -- and to take the heat. And today I've come back to Cincinnati to tell you I'm ready to make good on that pledge. Because up on Capitol Hill some important business has gone unfinished, promises have gone unfulfilled. We sent responsible proposals to Congress on the Big Four -- the Four C's: Capital gains. America's Children. Clean Air. 2 And Combatting crime. In some cases, that business has gone unattended for the better part of a year. And the Four C's have become MIA's -- Missing In Action in the jungles of Capitol Hill. The clock is running. Time and patience are running out. America wants it done right. America wants it done responsibly. And America wants it done now. 1111 And if it's not done right -- it will be sent back. That doesn't mean a fight. 11 But it does mean a veto. And I'm also prepared to use the Presidential Veto to hold the line against free spending. A world no lónger on the brink of war but on the brink of peace. offer hope For ending the Cold war. But we're We've seen a lot of exhilarating changes in recent months that not over The top yet. But being on the brink isn't the same as being over the top Some think all the answers to this year's problems can be found in the latest Washington craze -- this hypothetical windfall they're calling the "peace dividend." That's like the next-of-kin who spend the inheritance before the will is read. At best it's wishful thinking. At worst it's reckless and irresponsible. We like what's happening in Central Europe. But just as it would have been impossible -- six months ago -- to predict those thunderous changes, it's impossible today to know what will unfold in the next six months -- let alone the next six years. But in this world of change, one thing is certain: America 3 must be ready. America must be strong. And a strong America means not only a strong economy. It also means a strong defense. And if proof of that were ever needed -- we saw it last month in the courage of our troops in Panama. The "peace dividend," if there is a dividend, is not like money in the bank. It is more like an inheritance. A bonus that may come. Something to be hopeful about. But a long ways from having cash in hand. And like an inheritance, it is a special gift, a legacy not only of prosperity but also security, earned by the hard work and sacrifice of those who came before. of course, whenever an inheritance looms there are those eager to rush out and squander it -- to buy new things, to spend, spend, spend -- spending money they don't yet have. Then the bills start coming. And what was promised as a bonus becomes a burden. In Washington, that burden comes in the form of an announcement. They'll say: "It's Time to Raise Your Taxes." That's not going to happen. Because most Americans know that when found money does come along, the first thing to do is pay off your debts. Reduce the deficit. Reducing the deficit isn't just a good idea. It's what the American people want. And it's the law. The new budget must meet Gramm-Rudman requirements. It must reduce barriers to economic growth. It must keep interest rates low. Because the best anti-poverty program is a good job. And the best jobs program is a sound economy. A sound economy is a competitive economy. And to keep 4 America competitive, to fuel our continuing boom, we also need an infusion of new venture capital. That's why we need what a majority in both Houses of Congress has already voted for: A tax cut on capital gains. As the world turns to freer markets, this is no time to become wishy-washy about where America stands. The jury is no longer out. Markets work. Government controls don't. And since the debate has all but ended on this issue, perhaps our most die-hard ideologues can now turn their attention to the real question that divides America: 11 Is it Texas or Cincinnati that produces the world's best chili? of course this also is a question to be decided by the market. The economic challenge of the 90's is to make markets work better. And one of the best ways a government can do that is to do what people around the world are asking their governments to do: Get out of the way! It works. Here at home, we're in the midst of the longest peacetime economic expansion in our nation's history, an 86-month expansion that has created an astonishing 20 million new jobs since 1982. That's due to the genius of places like Cincinnati -- the Ohio River valley -- and the solid American values that have flourished here and inspired the world from Central Europe to Central America. The whole world is watching. And the whole world is ready. The headlines tell of other nations buying American. That's 5 good news -- not bad. We've been urging our own people to "Buy American" for years -- to invest in the greatest job-creating machine of the 20th century. And it's no surprise the world's investors are following suit. The results are in: America is the choice. We don't have to look elsewhere to know what works. If you want to follow the smart money advice of the 1990's, go to where the Japanese or the Europeans are going. Look at the U.S.A. Look at what the rest of the world calls "the American miracle." You saw it happen here in Cincinnati U.S.A., "The Blue Chip City," where 150,000 more people are at work than were working six years ago. Cincinnati produced its miracle the old-fashioned way -- the American way. It's an old tradition here. When he first opened his slaughterhouse in 1810, Richard Fosdick was warned that meat couldn't be cured in Cincinnati's climate. But he didn't know that it couldn't be done. He continued his experiments until he discovered the rock-salt process for curing meat -- and made this city the principal hog market of the world. Renewing our emphasis on innovation is one of the ways modern Cincinnati has prospered. You've also built a diverse economic base. Stripped away corporate fat. Renewed our emphasis on quality -- Fortune says Cincinnati makes some of the best jet engines in the world. Ultimately, these are the kind of efforts that will determine how America fares in the competitive, free-trade world of the 1990's. The way of the future is free people. The way of 6 the future is free trade. And free people and free trade is what America is all about. of course, it's not enough that trade be "free." It's also got to be fair. And it's not enough to tear down the Berlin Wall. remove We've also got to tear the teriffs and other barriers which restrict free and Fair to American trade. A global game is afoot, a game in which a Cincinnati businessman can now fly non-stop to London and Frankfurt -- any day of the week. If the rules are fair and the same for everybody -- we can play this game. It's called "competition." We invented it. We won it before. And we're going to win it again. Winning in the competitive 90's will take more. than investing in products. We must also invest in people. That means offering every American child an education second to none. Our "Educational Excellence Act" remains one of the priorities of my Administration -- sent to Congress almost nine months ago. It calls for choice, flexibility, and accountability. And it's time Congress accounts for its inaction on this pressing issue. You in Cincinnati have acted, working to educate and train our people for the 21st century. Three years ago business, educational, and community leaders here came together to take on a mighty task: reduce the numbers of students at risk -- the staggering 40 percent dropout rate in public schools. 7 The result was the Cincinnati Youth Collaborative -- an intensive people-to-people "mentoring" program that many of you support, and that has already seen some early success. It has America talking. Your Governor visited one of the participating classrooms at McKinley before coming out to the Education Summit I hosted in Virginia last fall. And earlier today I had an opportunity to see the programs at Taft High School firsthand. There are other matters that require urgent attention when Congress gets back later this month. Our Clean Air Act proposals recognize that in the emerging global economy, environmental destruction knows no borders -- and that a healthy economy requires a healthy environment. And a kinder, gentler environment also means a society where every man, woman and child can live and prosper in an environment free from fear. That means freedom from crime, and especially the increasingly violent crime that's been spawned by drug abuse and trafficking. On our anti-crime package as well, it's time for Congress to act. There is much to be done in the months ahead. But as a new year begins, Americans should also pause to take some pride in what we have accomplished together. Let me suggest two areas. At home, more than anything else, a kinder, gentler nation is one in which everyone who wants a job, has a job. And today America has the lowest unemployment rate since 1973 -- and Ohio has reached its highest employment level in history. an often hostile and tumultuons 8 Abroad, for more than 40 years, three generations of Americans have stood steadfast in * world often filled with challenge, rebuke and even insult. Firm in our belief in America's might and in America's destiny as leader of the free world, our spirit did not falter, our troops did not flinch. And today, after the watershed events of 1989, the free world we're leading is growing bigger all the time. In the past month we saw democracy restored to the brave people of Panama. We saw the powerful brought before the bar of experience & pride in justice. And we saw a proud people weep with gratitude over the skin, Courage and sacrifice of American soldiers. And somehow, it seems more than a coincidence. Because in that same month, we hear that the Bald Eagle -- the American Eagle -- may soon come off the endangered species list. Ladies and gentlemen -- America is back. And this time, America is back to stay. Thank you. God bless you. And God bless Cincinnati! # # # McNally/Simon January 10, 1990 Draft Six (B:OHIO) PRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE HYATT REGENCY BALLROOM, CINCINNATI FRIDAY, JAN. 12, 1990, 2:20 P.M. [[ACKNOWLEDGEMENTS]] We're pleased to be back in Cincinnati. Actually, I was hoping to get out here for the Reds' Opening Day. But they tell me I'm three months too early. Same problem I ran into on Pearl Harbor Day. It is fitting that, in the days leading up to the State of the Union Address, we should meet again in Cincinnati. The last time I visited was in November 1988, in the final days of the Presidential campaign. And earlier, Cincinnati was one of my last stops before the convention in New Orleans. On the trip before that we spent a morning at Proctor and Gamble's R & D facility. They taught me a trick every President should know: How to put toothpaste back into the tube. All in all I came here four times during the Presidential campaign. I talked of America's future, and of future generations. I talked of certain principles. Told you I was ready to make the tough calls -- to use the veto where principle was involved -- and to take the heat. And today I've come back to Cincinnati to tell you I'm ready to make good on that pledge. Because up on Capitol Hill some important business remains unfinished, promises have gone unfulfilled. 2 We sent responsible proposals to Congress in four of America's most critical areas: Capital gains. America's Children. Clean Air. And Combatting crime. In some cases, our proposals have been under consideration with Congress for the better part of a year. And these four are bogged down issues have become MIM'S Missing In_Action in the jungles of Capitol Hill. The clock is running. America's patience is running out. America wants it done right. America wants it done responsibly. And America wants it done now. 1111 And if it's not done right -- it will be sent back. That doesn't mean a fight. But it does mean a veto. III These four initiatives represent only part of the way in which the events of 1989 will affect the coming year. We've seen a lot of exhilarating changes in recent months that offer new hope for world peace. We like what's happening in Central Europe. But just as it would have been impossible -- six months ago -- to predict those thunderous changes, it's impossible today to know what will unfold in the next six months -- let alone the next six years. But in this world of change, one thing is certain: America must be ready. America must be strong. And a strong America means not only a strong economy. It also means a strong defense. And if proof of that were ever needed -- we saw it last month in the courage of our troops in Panama. 3 Yet some think all the answers to this year's problems can be found by spending what they are calling in Washington a "peace money we do not now have The potential gains before they are realized. dividend That's like the next-of-kin who spend the inheritance before the will is read. Unfortunately, what is being packaged as a "dividend," is not like money in the bank. It is more like a possible future inheritance. A legacy that will enable us to pass on a better world to our children. And like an inheritance, it is a special gift, a legacy not only of prosperity but also security, earned But if we tamper by the hard work and sacrifice of those who came before. with That prosperity if potential we jeopendize that security of course, whenever apjinheritance looms there are those we will inherit nothing eager to rush out and squander it -- to buy new things, to spend, spend, spend spending funds they don't yet have. Then the And the inheritance may not. bills start coming. And what was promised as a bonus becomes a burden. In Washington, that burden comes in the form of a new spending program. That's not going to happen. Because most Americans know not only must maintain our defenses, but we still must reduce the deficit. Reducing the deficit isn't just a good idea. It's what the American people want. And it's the law. The way to reduce the deficit is to restrain spending growth and continue economic growth. It's not the time, as some like to say, to raise your taxes. The new budget must meet Gramm-Rudman requirements. It must reduce barriers to economic growth. It must keep interest rates There are some who feel a new world of peace has already arrived, But The true story is told by the many thousands who still march and the millions more who wait in hope, for true democracy and freedom. We have seen dramatic change, and ample cause for hope . But we cannot and must not indermine the formidations upon which freedom is being built. And we must always be mindful of history's lesson-- that new threats to the freedom of man will always arise. 4 low. Because the best anti-poverty program is a good job. And the best jobs program is a sound economy. A sound economy is a competitive economy. And to keep America competitive, to fuel our continuing boom, we also need an infusion of new venture capital. That's why we need what a majority in both Houses of Congress has already voted for: A tax cut on capital gains. As the world turns to freer markets, this is no time to become wishy-washy about where America stands. The jury is no longer out. Markets work. Government controls don't. And since the debate has all but ended on this issue, perhaps our most die-hard ideologues can now turn their attention to the real question that divides America: 11 Is it Texas or Cincinnati that produces the world's best chili? of course this also is a question to be decided by the market. The economic challenge of the 90's is to make markets work better. And one of the best ways a government can do that is to do what people around the world are asking their governments to do: Get out of the way! It works. Here at home, we're in the midst of the longest peacetime economic expansion in our nation's history, an 86-month expansion that has created an astonishing 20 million new jobs since 1982. That's due to the genius of places like Cincinnati -- and the solid American values that have flourished here and inspired the world from Central Europe to Central America. 5 The whole world is watching. And the whole world is ready. The headlines tell of other nations buying America. That's good news -- not bad. We've been urging our own people to "Buy America" for years -- to invest in the greatest job-creating machine of the 20th Century. And it's no surprise the world's investors are following suit. The results are in: America is the choice. We don't have to look elsewhere to know what works. If you want to follow the smart money advice of the 1990's, go to where the Japanese or the Europeans are going. Look at the U.S.A. Look at what the rest of the world calls "the American miracle." You saw it happen here in Cincinnati U.S.A., "The Blue Chip City," where 150,000 more people are at work than were working six years ago. Cincinnati produced its miracle the old-fashioned way -- the American way. It's an old tradition here. When he first opened his slaughterhouse in 1810, Richard Fosdick was warned that meat couldn't be cured in Cincinnati's climate. But he didn't know that it couldn't be done. He continued his experiments until he discovered the rock-salt process for curing meat -- and made this city the principal hog market of the world. Renewing our emphasis on innovation is one of the ways modern Cincinnati has prospered. You've also built a diverse economic base. Stripped away corporate fat. Renewed our emphasis on quality -- Fortune says Cincinnati makes some of the best jet engines in the world. 6 Ultimately, these are the kind of efforts that will determine how America fares in the competitive, free-trade world of the 1990's. The way of the future is free people. The way of the future is free trade. And free people and free trade is whatAmerica is all about. of course, it's not enough that trade be "free." It's also got to be fair. We've got to remove barriers to American goods and services. A global game is afoot, a game in which a Cincinnati businessman can now fly non-stop to London and Frankfurt -- any day of the week. If the rules are fair and the same for everybody -- we can play this game. It's called "free enterprise." And America is the free enterprise capital of the world. Winning in the competitive 90's will take more than investing in products. We must also invest in people. That means offering every American child an education second to none. Our "Educational Excellence Act" remains a priority of my Administration -- sent to Congress almost nine months ago. It calls for choice, flexibility, and accountability. The time for study is past and the time for action is now. You in Cincinnati have acted, working to educate and train our people for the 21st Century. Three years ago business, educational, and community leaders here came together to take on a mighty task: reduce the numbers of students at risk -- the 7 staggering 40 percent dropout rate in Cincinnati's public schools. The result was the Cincinnati Youth Collaborative -- an intensive people-to-people "mentoring" program that many of you support, and that has already seen some early success. It has America talking. Your Governor visited one of the participating classrooms at McKinley Pre-school before coming out to the Education Summit I hosted in Virginia last fall. And earlier today I had an opportunity to see the tremendous programs at Taft High School firsthand. There are other matters that require urgent attention when Congress gets back later this month. Our Clean Air Act proposals recognize that in the emerging global economy, environmental destruction knows no borders -- and that a healthy economy goes hand in hand with a healthy environment. And a kinder, gentler environment also means a society where every man, woman and child can live and prosper in an environment free from fear. That means freedom from crime, and especially the increasingly violent crime that's been spawned by drug abuse and trafficking. On our anti-crime package as well, it's time for Congress to act. There is much to be done in the months ahead. But as a new year begins, Americans should also pause to take some pride in what we have accomplished together. Let me suggest two areas. At home, more than anything else, a kinder, gentler nation is one in which everyone who wants a job, has a job. And today 8 America has the lowest unemployment rate since 1973 -- and Ohio has reached its highest employment level in history. Abroad, for more than 40 years, three generations of Americans have stood steadfast in an often hostile and tumultuous world. Firm in our belief in America's destiny as leader of the free world, our spirit did not falter, our troops did not flinch. And today, after the watershed events of 1989, the free world we're leading is growing bigger all the time. In the past month we saw democracy restored to the brave people of Panama. We saw the powerful brought before the bar of justice. And we took pride in the skill, courage and sacrifice of American soldiers. And somehow, it seems more than a coincidence. Because in that same month, we hear that the Bald Eagle -- the American Eagle -- may soon come off the endangered species list. Ladies and gentlemen -- America is back. 11 And this time, America is back to stay. Thank you. God bless you. God bless Cincinnati. And God bless America! # # # McNally/Simon January 9, 1990 Draft Four (B:OHIO) PRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE HYATT REGENCY BALLROOM, CINCINNATI FRIDAY, JAN. 12, 1990, 1:30 P.M. [ACKNOWLEDGEMENTS ]] We're pleased to be back in Cincinnati. Actually, I was hoping to get out here for the Reds' Opening Day. But they tell me I'm three months too early. Same problem I ran into on Pearl Harbor Day. It is fitting that, in the days leading up to the State of the Union Address, we should meet again in Cincinnati. The last time I visited was in November 1988, in the final days of the Presidential campaign. And earlier, Cincinnati was one of my last stops before the convention in New Orleans. On the trip before that we spent a morning at Proctor and Gamble's R & D facility. They taught me a trick every President wants should to know: How to put toothpaste back into the tube. All in all I came here four times during the Presidential campaign. I talked of America's future, and of future generations. I talked of certain principles. Told you I was ready to make the tough calls -- to use the veto where principle was involved -- and to take the heat. And today I've come back to Cincinnati to tell you I'm ready to make good on that pledge. remains Because up on Capitol Hill some important business has gone unfinished, promises have gone unfulfilled. in four of of Currences We sent responsible proposals to Congress on the Big Four most critical areas the Four C's: Capital gains. America's Children. Clean Air. 2 And Combatting crime. our proposalo have been under consideration w the In some cases, that business has gone unattended for the Congress for the these issues better part of a year. And the Four C's have become MIA's -- Missing In Action in the jungles of Capitol Hill. Americas Patiencers is The clock is running. Time and patience are running out. America wants it done right. America wants it done responsibly. And America wants it done now. And if it's not done right -- it will be sent back. That doesn't mean a fight. 11 But it does mean a veto. went A And I'm also prepared to use the Presidential Veto to hold the line against free spending. We've seen a lot of exhilarating changes in recent months. A world no longer on the brink of war but on the brink of peace. But being on the brink isn't the same as being over the top. Some think all the answers to this year's problems can by be spending what they are callng in found in the latest Washington craze -- this hypothetical windfall they re calling the "peace dividend." That's like the next-of-kin who spend the inheritance before the will is read. At best it's wishful thinking. At worst it's reckless and irresponsible. We like what's happening in Central Europe. But just as it would have been impossible -- six months ago -- to predict those thunderous changes, it's impossible today to know what will unfold in the next six months -- let alone the next six years. But in this world of change, one thing is certain: America 3 must be ready. America must be strong. And a strong America means not only a strong economy. It also means a strong defense. And if proof of that were ever needed -- we saw it last month in the courage of our troops in Panama. to the extent there The "peace dividend," if there is a dividend, is not like a possi ble future legacy money in the bank. It is more like an inheritance. A bonus that will enable us to pass on a better world to our weare Children. may come. Something to be hopeful about. But a long ways from having cash in hand. And like an inheritance, it is a special gift, a legacy not only of prosperity but also security, earned by the hard work and sacrifice of those who came before. Of course, whenever an inheritance looms there are those eager to rush out and squander it -- to buy new things, to spend, funds spend, spend -- spending money they don't yet have. Then the bills start coming. And what was promised as a bonus becomes a a burden. In Washington, that burden comes in the form of an new spending program. and soon they have to announcement. They'll say: "It's Time to Raise Your Taxes. " That's not going to happen. \\ Because most Americans know we still must that when found money does come along, the first thing to do is pay off your debts. Reduce the deficit. 11 Reducing the deficit isn't just a good idea. It's what the American people want. And it's the law. The new budget must meet Gramm-Rudman requirements. It must reduce barriers to economic growth. It must keep interest rates low. Because the best anti-poverty program is a good job. And the best jobs program is a sound economy. A sound economy is a competitive economy. And to keep 4 America competitive, to fuel our continuing boom, we also need an infusion of new venture capital. That's why we need what a majority in both Houses of Congress has already voted for: A tax cut on capital gains. As the world turns to freer markets, this is no time to become wishy-washy about where America stands. The jury is no longer out. Markets work. Government controls don't. And since the debate has all but ended on this issue, perhaps our most die-hard ideologues can now turn their attention to the real question that divides America: Is it Texas or Cincinnati that produces the world's best chili? \\\ Of course this also is a question to be decided by the market. The economic challenge of the 90's is to make markets work better. And one of the best ways a government can do that is to do what people around the world are asking their governments to do: Get out of the way! It works. Here at home, we're in the midst of the longest peacetime economic expansion in our nation's history, an 86-month expansion that has created an astonishing 20 million new jobs since 1982. That's due to the genius of places like Cincinnati the Ohio River valley and the solid American values that have flourished here and inspired the world from Central Europe to Central America. The whole world is watching. And the whole world is ready. The headlines tell of other nations buying American. That's 5 good news -- not bad. We've been urging our own people to "Buy American" for years -- to invest in the greatest job-creating machine of the 20th century. And it's no surprise the world's investors are following suit. The results are in: America is the choice. We don't have to look elsewhere to know what works. If you want to follow the smart money advice of the 1990's, go to where the Japanese or the Europeans are going. Look at the U.S.A. Look at what the rest of the world calls "the American miracle." You saw it happen here in Cincinnati U.S.A., "The Blue Chip City," where 150,000 more people are at work than were working six years ago. Cincinnati produced its miracle the old-fashioned way -- the American way. It's an old tradition here. When he first opened his slaughterhouse in 1810, Richard Fosdick was warned that meat couldn't be cured in Cincinnati's climate. But he didn't know that it couldn't be done. He continued his experiments until he discovered the rock-salt process for curing meat -- and made this city the principal hog market of the world. Renewing our emphasis on innovation is one of the ways modern Cincinnati has prospered. You've also built a diverse economic base. Stripped away corporate fat. Renewed our emphasis on quality -- Fortune says Cincinnati makes some of the best jet engines in the world. Ultimately, these are the kind of efforts that will determine how America fares in the competitive, free-trade world of the 1990's. The way of the future is free people. The way of 6 the future is free trade. And free people and free trade is what America is all about. \\\ Of course, it's not enough that trade be "free." It's also got to be fair. III And it's not enough to tear down the Berlin Wall. We've also got to tear down the tariffs and other barriers goods audservices. to American trade. \\\ A global game is afoot, a game in which a Cincinnati businessman can now fly non-stop to London and Frankfurt -- any day of the week. If the rules are fair and the same for everybody -- we can free enterprise Clud Americas play this game. It's called "competition. We invented it. We is the free enterprise Capital of the world. 111 won it before. And we're going to win it again \\\ Winning in the competitive 90's will take more than investing in products. We must also invest in people. That means offering every American child an education second to none. a Our "Educational Excellence Act" remains one of the of me priorities of my Administration -- sent to Congress almost nine months ago. It calls for choice, flexibility, and accountability. And it's time Congress accounts for its inaction on this pressing issue. The time for study is passed and the tence for action is now. You in Cincinnati have acted, working to educate and train C our people for the 21st century. Three years ago business, educational, and community leaders here came together to take on a mighty task: reduce the numbers of students at risk -- the Gincinnatis staggering 40 percent dropout rate in public schools. 7 The result was the Cincinnati Youth Collaborative -- an intensive people-to-people "mentoring" program that many of you support, and that has already seen some early success. It has America talking. Your Governor visited one of the Pre-5chool participating classrooms at McKinley before coming out to the Education Summit I hosted in Virginia last fall. And earlier today I had an opportunity to see the tremendous programs at Taft High School firsthand. There are other matters that require urgent attention when Congress gets back later this month. Our Clean Air Act proposals recognize that in the emerging global economy, environmental destruction knows no borders -- and that a healthy economy goes hand m hand with requires a healthy environment. And a kinder, gentler environment also means a society where every man, woman and child can live and prosper in an environment free from fear. That means freedom from crime, and especially the increasingly violent crime that's been spawned by drug abuse and trafficking. On our anti-crime package as well, it's time for Congress to act. There is much to be done in the months ahead. But as a new year begins, Americans should also pause to take some pride in what we have accomplished together. Let me suggest two areas. At home, more than anything else, a kinder, gentler nation is one in which everyone who wants a job, has a job. And today America has the lowest unemployment rate since 1973 -- and Ohio has reached its highest employment level in history. 8 Abroad, for more than 40 years, three generations of Americans have stood steadfast in a world often filled with challenge, rebuke and even insult. Firm in our belief in America's might and in America's destiny as leader of the free world, our spirit did not falter, our troops did not flinch. And today, after the watershed events of 1989, the free world we're leading is growing bigger all the time. In the past month we saw democracy restored to the brave people of Panama. We saw the powerful brought before the bar of justice. And we saw a proud people weep with gratitude over the sacrifice of American soldiers. And somehow, it seems more than a coincidence. Because in that same month, we hear that the Bald Eagle -- the American Eagle -- may soon come off the endangered species list. Ladies and gentlemen -- America is back. 11 And this time, America is back to stay. Thank you. God bless you. And God bless Cincinnati! # # # 103015SS Document No. WHITE HOUSE STAFFING MEMORANDUM 1/11/90 ---- DATE: ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE HYATT REGENCY BALLROOM SUBJECT: CINCINNATI, OHIO FRIDAY, JANUARY 12, 1990 (1/11 - draft seven) ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN ROGICH BATES UNTERMEYER CARD BENNETT d PINKERTON CICCONI DEMAREST ROGERS FITZWATER WINSTON GRAY WRAY HAGIN REMARKS: The attached has been forwarded to the President. RESPONSE: James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 McNally/Simon January 11, 1990 1990 JAN il PH 3. 51 Draft Seven (B:OHIO) PRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE HYATT REGENCY BALLROOM, CINCINNATI FRIDAY, JAN. 12, 1990, 2:20 P.M. [ACKNOWLEDGEMENTS] We're pleased to be back in Cincinnati. Actually, I was hoping to get out here for the Reds' Opening Day. But they tell me I'm three months too early. Same problem I ran into on Pearl Harbor Day. 1111 It is fitting that, in the days leading up to the State of the Union Address, we should meet again in Cincinnati. The last time I visited was in November 1988, in the final days of the Presidential campaign. And earlier, Cincinnati was one of my last stops before the convention in New Orleans. On the trip before that we spent a morning at Proctor and Gamble's R & D facility. They taught me a trick every President should know: How to put toothpaste back into the tube. All in all I came here four times during the Presidential campaign. I talked of America's future, and of future generations. I talked of certain principles. Told you I was ready to make the tough calls -- to use the veto where principle was involved -- and to take the heat. And today I've come back to Cincinnati to tell you I'm ready to make good on that pledge. Because up on Capitol Hill some important business remains unfinished, promises have gone unfulfilled. 2 We sent responsible proposals to Congress in four of America's most critical areas: Capital gains. America's Children. Clean Air. And Combatting crime. In some cases, our proposals have been under consideration with Congress for the better part of a year. And these four issues are bogged down in the jungles of Capitol Hill. The clock is running. America's patience is running out. America wants it done right. America wants it done responsibly. And America wants it done now. And if it's not done right -- it will be sent back. That doesn't mean a fight. But it does mean a veto. These four initiatives represent only part of the way in which the events of 1989 will affect the coming year. We've seen a lot of exhilarating changes in recent months that offer new hope for world peace. We like what's happening in Central Europe. But just as it would have been impossible -- six months ago -- to predict those thunderous changes, it's impossible today to know what will unfold in the next six months -- let alone the next six years. But in this world of change, one thing is certain: America must be ready. America must be strong. And a strong America means not only a strong economy. It also means a strong defense. And if proof of that were ever needed -- we saw it last month in the courage of our troops in Panama. 3 Yet some think all the answers to this year's problems can be found by spending what they are calling in Washington a "peace dividend." That's like the next-of-kin who spend the inheritance before the will is read. Unfortunately, what is being packaged as a "dividend," is not money in the bank. It is more like a possible future inheritance. A legacy that will enable us to pass on a better world to our children. And like an inheritance, it is a special gift, a legacy not only of prosperity but also security, earned by the hard work and sacrifice of those who came before. of course, whenever a potential inheritance looms there are those eager to rush out and squander it -- to buy new things, to spend, spend, spend -- spending funds they don't yet have. Then the bills start coming. And the inheritance may not. And what was promised as a bonus becomes a burden. In Washington, that burden comes in the form of a new spending program. That's not going to happen. Because most Americans know we not only must maintain our defenses, but still must reduce the deficit. Reducing the deficit isn't just a good idea. It's what the American people want. And it's the law. The way to reduce the deficit is to restrain spending growth and continue economic growth. It's not the time, as some like to say, to raise your taxes. The new budget must meet Gramm-Rudman requirements. It must reduce barriers to economic growth. It must keep interest rates 4 low. Because the best anti-poverty program is a good job. And the best jobs program is a sound economy. A sound economy is a competitive economy. And to keep America competitive, to fuel our continuing boom, we also need an infusion of new venture capital. That's why we need what a majority in both Houses of Congress has already voted for: A tax cut on capital gains. As the world turns to freer markets, this is no time to become wishy-washy about where America stands. The jury is no longer out. Markets work. Government controls don't. And since the debate has all but ended on this issue, perhaps our most die-hard ideologues can now turn their attention to the real question that divides America: Is it Texas or Cincinnati that produces the world's best chili? of course this also is a question to be decided by the market. The economic challenge of the 90's is to make markets work better. And one of the best ways a government can do that is to do what people around the world are asking their governments to do: Get out of the way! It works. Here at home, we're in the midst of the longest peacetime economic expansion in our nation's history, an 86-month expansion that has created an astonishing 20 million new jobs since 1982. That's due to the genius of places like Cincinnati -- and the solid American values that have flourished here and inspired the world from Central Europe to Central America. 5 The whole world is watching. And the whole world is ready. The headlines tell of other nations buying America. That's good news -- not bad. We've been urging our own people to "Buy America" for years -- to invest in the greatest job-creating machine of the 20th Century. And it's no surprise the world's investors are following suit. The results are in: America is the choice. We don't have to look elsewhere to know what works. If you want to follow the smart money advice of the 1990's, go to where the Japanese or the Europeans are going. Look at the U.S.A. Look at what the rest of the world calls "the American miracle." You saw it happen here in Cincinnati U.S.A., "The Blue Chip City," where 150,000 more people are at work than were working six years ago. Cincinnati produced its miracle the old-fashioned way -- the American way. It's an old tradition here. When he first opened his slaughterhouse in 1810, Richard Fosdick was warned that meat couldn't be cured in Cincinnati's climate. But he didn't know that it couldn't be done. He continued his experiments until he discovered the rock-salt process for curing meat -- and made this city the principal hog market of the world. Renewing our emphasis on innovation is one of the ways modern Cincinnati has prospered. You've also built a diverse economic base. Stripped away corporate fat. Renewed our emphasis on quality -- Fortune says Cincinnati makes some of the best jet engines in the world. 6 Ultimately, these are the kind of efforts that will determine how America fares in the competitive, free-trade world of the 1990's. The way of the future is free people. The way of the future is free trade. And free people and free trade is whatAmerica is all about. of course, it's not enough that trade be "free." It's also got to be fair. We've got to remove barriers to American goods and services. A global game is afoot, a game in which a Cincinnati businessman can now fly non-stop to London and Frankfurt -- any day of the week. If the rules are fair and the same for everybody -- we can play this game. It's called "free enterprise." And America is the free enterprise capital of the world. Winning in the competitive 90's will take more than investing in products. We must also invest in people. That means offering every American child an education second to none. Our "Educational Excellence Act" remains a priority of my Administration -- sent to Congress almost nine months ago. It calls for choice, flexibility, and accountability. The time for study is past and the time for action is now. You in Cincinnati have acted, working to educate and train our people for the 21st Century. Three years ago business, educational, and community leaders here came together to take on a mighty task: reduce the numbers of students at risk -- the 7 staggering 40 percent dropout rate in Cincinnati's public schools. The result was the Cincinnati Youth Collaborative -- an intensive people-to-people "mentoring" program that many of you support, and that has already seen some early success. It has America talking. Your Governor visited one of the participating classrooms at McKinley Pre-school before coming out to the Education Summit I hosted in Virginia last fall. And earlier today I had an opportunity to see the tremendous programs at Taft High School firsthand. There are other matters that require urgent attention when Congress gets back later this month. Our Clean Air Act proposals recognize that in the emerging global economy, environmental destruction knows no borders -- and that a healthy economy goes hand in hand with a healthy environment. And a kinder, gentler environment also means a society where every man, woman and child can live and prosper in an environment free from fear. That means freedom from crime, and especially the increasingly violent crime that's been spawned by drug abuse and trafficking. On our anti-crime package as well, it's time for Congress to act. There is much to be done in the months ahead. But as a new year begins, Americans should also pause to take some pride in what we have accomplished together. Let me suggest two areas. At home, more than anything else, a kinder, gentler nation is one in which everyone who wants a job, has a job. And today 8 America has the lowest unemployment rate since 1973 -- and Ohio has reached its highest employment level in history. Abroad, for more than 40 years, three generations of Americans have stood steadfast in an often hostile and tumultuous world. Firm in our belief in America's destiny as leader of the free world, our spirit did not falter, our troops did not flinch. And today, after the watershed events of 1989, the free world we're leading is growing bigger all the time. In the past month we saw democracy restored to the brave people of Panama. We saw the powerful brought before the bar of justice. And we took pride in the skill, courage and sacrifice of American soldiers. And somehow, it seems more than a coincidence. Because in that same month, we hear that the Bald Eagle -- the American Eagle -- may soon come off the endangered species list. Ladies and gentlemen -- America is back. And this time, America is back to stay. Thank you. God bless you. God bless Cincinnati. And God bless America! # # # 9 Nearly a year has passed since, in my first moments as President, I offered my hand to those who control Congress, reminding us all that the people of this country did not send us to Washington to bicker. Now a year has passed. A new year has begun. And it's time -- it's past time -- for Congress to tend to this unfinished business. Cincinnati has a great sports tradition. Last month the fans started throwing snowballs during the game. There might even be one or two here who had wet mittens. And coach Sam Wyche got on the P.A. system and said: "Stop throwing snowballs. This isn't the United States Congress. " It is the result of hard work, commitment, and farsighted leaders who looked beyond the horizon, and saw an image of a world that could be. In fact, business ideas and business advice may become one of America's great exports of the 1990' S ((POLAND, JAPAN PROGRAMS ) ) Nor have you ignored the message of helping those who are suffering in the midst of this unprecedented prosperity 10 And the same formula that saw free people triumph in Panama is going to see free trade triumph for America. We're going to work hard. We're going to fight hard. And we're going to win. I think the American people are pretty happy with the way I'm running foreign policy. And if some in Congress think they can do a better job, they shouldn't try to micro-manage foreign affairs, they should do what I did: Run for President of the United States. 2 And Combatting crime. In some cases, that business has gone unattended for the These four initiatines represent only part of the way in better part of a year. And the Four C's have become MIA's -- Missing In Action in the jungles of Capitol Hill. which the events of 1989 will affect the coming The clock is running. Time and patience are running out. America wants it done right. America wants it done responsibly. And America wants it done now. And if it's not done right -- it will be sent back. That doesn't mean a fight. But it does mean a veto. And I'm also prepared to use the Presidential Veto to hold the line against free spending. We've seen a lot of exhilarating changes, in recent months A world no longer on the brink of war but on the brink of peace. But being on the brink isn't the same as being over the top. Some think all the answers to this year's problems can be found in the latest Washington craze -- this hypothetical windfall they're calling the "peace dividend." That's like the next-of-kin who spend the inheritance before the will is read. At best it's wishful thinking. At worst it's reckless and irresponsible. We like what's happening in Central Europe. But just as it would have been impossible -- six months ago -- to predict those thunderous changes, it's impossible today to know what will unfold in the next six months -- let alone the next six years. But in this world of change, one thing is certain: America 3 Yet some think all the answers to this year's problems can be found by spending what they are calling in Washington a "peace dividend." That's like the next-of-kin who spend the inheritance before the will is read. Unfortunately, what is being packaged as a "dividend," is not like money in the bank. It is more like a possible future inheritance. A legacy that will enable us to pass on a better world to our children. And like an inheritance, it is a special gift, a legacy not only of prosperity but also security, earned by the hard work and sacrifice of those who came before. potential of course, whenever an inheritance looms there are those eager to rush out and squander it -- to buy new things, to spend, spend, spend -- spending funds they don't yet have. Then the And The inheritance maynot. not, bills start coming. ^ And what was promised as a bonus becomes a burden. In Washington, that burden comes in the form of a new spending program. That's not going to happen. Because most Americans know must not only maintain our defenses, but we still must reduce the deficit. Reducing the deficit isn't just a good idea. It's what the American people want. And it's the law. The way to reduce the deficit is to restrain spending growth and continue economic growth. It's not the time, as some like to say, to raise your taxes. The new budget must meet Gramm-Rudman requirements. It must reduce barriers to economic growth. It must keep interest rates 3 Yet some think all the answers to this year's problems can be found by spending what they are calling in Washington a "peace dividend." That's like the next-of-kin who spend the inheritance before the will is read. Unfaturately what being packaged a beace dividend, " to the extent there is a dividend, is not like money in the bank. It is more like a possible future inheritance. A legacy that will enable us to pass on a better world to our children. And like an inheritance, it is a special gift, a legacy not only of prosperity but also security, earned by the hard work and sacrifice of those who came before. of course, whenever an inheritance looms there are those eager to rush out and squander it -- to buy new things, to spend, spend, spend -- spending funds they don't yet have. Then the bills start coming. And what was promised as a bonus becomes a burden. In Washington, that burden comes in the form of a new spending program. That's not going to happen. Because most Americans know we still must reduce the deficit. Reducing the deficit isn't just a good idea. It's what the American people want. And it's the law. The way to reduce the deficit is to restrain spending growth and continue economic growth. It's not the time as some like to say, to raise your taxes. The new budget must meet Gramm-Rudman requirements. It must reduce barriers to economic growth. It must keep interest rates 103015SS Document No. WHITE HOUSE STAFFING MEMORANDUM 1/9/90 4:00 PM, WED., JAN 10 DATE: ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE HYATT REGENCY BALLROOM SUBJECT: CINCINNATI, OHIO FRIDAY, JANUARY 12, 1990 1:30 PM ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN ROGICH BATES N/C UNTERMEYER CARD BOSKIN CICCONI DELAND DEMAREST BENNETT FITZWATER ROGERS PINKERTON GRAY HAGIN WINSTON WRAY REMARKS: ANDERSON Please provide comments/edits directly to Chriss Winston, Rm. 122, x2930 no later than 4:00 PM, WEDNESDAY, JANUARY 10, with a copy to my office. Thank you. RESPONSE: No comments 61 :2d 01 TEC 68 1/10 James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 McNally/Simon January 11, 1990 Draft Eight (B:OHIO) PRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE HYATT REGENCY BALLROOM, CINCINNATI FRIDAY, JAN. 12, 1990, 2:20 P.M. Thank you, Joe [[HEAD, CHAIRMAN]] for those kind words. And thank you all, for your warm greeting. I'm pleased that Cincinnati's Congressmen, Bill Gradison and Tom Luken, were able to join me in flying out here today. And it's always good to see [[STATE]] Senator Stan Aronoff [[AIR- noff]], Commissioner Bob Taft, and Mayor Charles Luken. We're pleased to be back in Cincinnati. Actually, I was hoping to get out here for the Reds' Opening Day. But they tell me I'm three months too early. Same problem I ran into on Pearl Harbor Day. And Cincinnati must be very proud to have another member of the Big Red Machine join Johnny Bench in the Hall of Fame -- my friend Joe Morgan. It is fitting that, in the days leading up to the State of the Union Address, we should meet again in Cincinnati. The last time I visited was in November 1988, in the final days of the Presidential campaign. And earlier, Cincinnati was one of my last stops before the convention in New Orleans. On the trip before that we spent a morning at Proctor and Gamble's R & D facility. They taught me a trick every President should know: How to put toothpaste back into the tube. All in all I came here four times during the Presidential campaign. I talked of America's future, and of future 2 generations. I talked of certain principles. Told you I was ready to make the tough calls -- and to take the heat. And today I've come back to Cincinnati to tell you I'm ready to make good on that pledge. Because up on Capitol Hill some important business remains unfinished, promises have gone unfulfilled. We sent responsible proposals to Congress in four of America's most critical areas: Capital gains. America's Children. Clean Air. And Combatting crime. In some cases, our proposals have been under consideration with Congress for the better part of a year. And these four issues are bogged down in the jungles of Capitol Hill. The clock is running. America's patience is running out. America wants it done right. America wants it done responsibly. And America wants it done now. These four initiatives represent only part of the way in which the events of 1989 will affect the coming year. We've seen a lot of exhilarating changes in recent months that offer new hope for world peace. We like what's happening in Central Europe. But just as it would have been impossible -- six months ago -- to predict those thunderous changes, it's impossible today to know what will unfold in the next six months -- let alone the next six years. But in this world of change, one thing is certain: America must be ready. America must be strong. And a strong America 3 means not only a strong economy. It also means a strong defense -- a ready and highly effective defense force. And if proof of that were ever needed -- we saw it last month in the courage of our troops in Panama. Yet some think all the answers to this year's problems can be found by spending what they are calling in Washington a "peace dividend." That's like the next-of-kin who spend the inheritance before the will is read. Unfortunately, what is being packaged as a "dividend," is not money in the bank. It is more like a possible future inheritance. A legacy that will enable us to pass on a better world to our children. And like an inheritance, it is a special gift, a legacy not only of prosperity but also security, earned by the hard work and sacrifice of those who came before. of course, whenever a potential inheritance looms there are those eager to rush out and squander it -- to buy new things, to spend, spend, spend -- spending funds they don't yet have. Then the bills start coming. And the inheritance may not. And what was promised as a bonus becomes a burden. In Washington, that burden comes in the form of a new spending program. That's not going to happen. Because most Americans know we not only must maintain our defenses, but still must reduce the deficit. Reducing the deficit isn't just a good idea. It's what the American people want. And it's the law. 4 The way to reduce the deficit is to restrain spending growth and continue economic growth. It's not the time, as some like to say, to raise your taxes. The new budget must meet Gramm-Rudman requirements. It must reduce barriers to economic growth. It must keep interest rates low. Because the best anti-poverty program is a good job. And the best jobs program is a sound economy. A sound economy is a competitive economy. And to keep America competitive, to fuel our continuing boom, we also need an infusion of new venture capital. That's why we need what a majority in both Houses of Congress has already voted for: A tax cut on capital gains. As the world turns to freer markets, this is no time to become wishy-washy about where America stands. The jury is no longer out. Markets work. Government controls don't. And since the debate has all but ended on this issue, perhaps our most die-hard ideologues can now turn their attention to the real question that divides America: Is it Texas or Cincinnati that produces the world's best chili? Of course this also is a question to be decided by the market. The economic challenge of the 90's is to make markets work better. And one of the best ways a government can do that is to do what people around the world are asking their governments to do: Get out of the way! It works. Here at home, we're in the midst of the longest peacetime economic expansion in our nation's history, an 86-month 5 expansion that has created an astonishing 20 million new jobs since 1982. That's due to the genius of places like Cincinnati -- and the solid American values that have flourished here and inspired the world from Central Europe to Central America. The whole world is watching. And the whole world is ready. The headlines tell of other nations buying America. That's good news -- not bad. We've been urging our own people to "Buy America" for years -- to invest in the greatest job-creating machine of the 20th Century. And it's no surprise the world's investors are following suit. The results are in: America is the choice. We don't have to look elsewhere to know what works. If you want to follow the smart money advice of the 1990's, go to where the Japanese or the Europeans are going. Look at the U.S.A. Look at what the rest of the world calls "the American miracle." You saw it happen here in Cincinnati U.S.A., "The Blue Chip City," where 150,000 more people are at work than were working six years ago. Cincinnati produced its miracle the old-fashioned way -- the American way. It's an old tradition here. When he first opened his slaughterhouse in 1810, Richard Fosdick was warned that meat couldn't be cured in Cincinnati's climate. But he didn't know that it couldn't be done. He continued his experiments until he discovered the rock-salt process for curing meat -- and made this city the principal hog market of the world. 6 Renewing our emphasis on innovation is one of the ways modern Cincinnati has prospered. You've also built a diverse economic base. Stripped away corporate fat. Renewed our emphasis on quality -- Fortune says Cincinnati makes some of the best jet engines in the world. Ultimately, these are the kind of efforts that will determine how America fares in the competitive, free-trade world of the 1990's. The way of the future is free people. The way of the future is free trade. And free people and free trade is what America is all about. of course, it's not enough that trade be "free." It's also got to be fair. We've got to remove barriers to American goods and services. A global game is afoot, a game in which a Cincinnati businessman can now fly non-stop to London and Frankfurt -- any day of the week. If the rules are fair and the same for everybody -- we can play this game. It's called "free enterprise." And America is the free enterprise capital of the world. Winning in the competitive 90's will take more than investing in products. We must also invest in people. That means offering every American child an education second to none. Our "Educational Excellence Act" remains a priority of my Administration -- sent to Congress almost nine months ago. It calls for choice, flexibility, and accountability. The time for study is past and the time for action is now. 7 You in Cincinnati have acted, working to educate and train our people for the 21st Century. Three years ago business, educational, and community leaders here came together to take on a mighty task: reduce the numbers of students at risk -- the staggering 40 percent dropout rate in Cincinnati's public schools. The result was the Cincinnati Youth Collaborative -- an intensive people-to-people "mentoring" program that many of you support, and that has already seen some early success. It has America talking. Your Governor visited one of the participating classrooms at McKinley Pre-school before coming out to the Education Summit I hosted in Virginia last fall. And earlier today I had an opportunity to see the tremendous programs at Taft High School firsthand. There are other matters that require urgent attention when Congress gets back later this month. Our Clean Air Act proposals recognize that in the emerging global economy, environmental destruction knows no borders -- and that a healthy economy goes hand in hand with a healthy environment. And a kinder, gentler environment also means a society where every man, woman and child can live and prosper in an environment free from fear. That means freedom from crime, and especially the increasingly violent crime that's been spawned by drug abuse and trafficking. On our anti-crime package as well, it's time for Congress to act. 8 There is much to be done in the months ahead. But as a new year begins, Americans should also pause to take some pride in what we have accomplished together. Let me suggest two areas. At home, more than anything else, a kinder, gentler nation is one in which everyone who wants a job, has a job. And today America has the lowest unemployment rate since 1973 -- and Ohio has reached its highest employment level in history. Abroad, for more than 40 years, three generations of Americans have stood steadfast in an often hostile and tumultuous world. Firm in our belief in America's destiny as leader of the free world, our spirit did not falter, our troops did not flinch. And today, after the watershed events of 1989, the free world we're leading is growing bigger all the time. In the past month we saw democracy restored to the brave people of Panama. We saw the powerful brought before the bar of justice. And we took pride in the skill, courage and sacrifice of American soldiers. The Panamanian operation was conducted by highly trained troops -- the best trained troops in the world. But it is not simply training -- it is patriotism and dedication. I went to two hospitals in San Antonio and talked to some of our wounded. I will never, ever forget their spirit. One severely wounded kid said to me: My only regret is I'm here -- not there with the others. Pride in America has never been higher. And somehow, it seems more than a coincidence: In the same month, we hear that 9 the Bald Eagle -- the American Eagle -- may soon come off the endangered species list. Ladies and gentlemen -- America is back. 11 And this time, America is back to stay. Thank you. God bless you. God bless Cincinnati. And God bless America! # # # action, 6. Taylor 103015SS cc: JT Document No. RS WHITE HOUSE STAFFING MEMORANDUM 1/9/90 4:00 PM, WED., JAN 10 DATE: ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE HYATT REGENCY BALLROOM SUBJECT: CINCINNATI, OHIO FRIDAY, JANUARY 12, 1990 1:30 PM ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN ROGICH BATES UNTERMEYER CARD BOSKIN CICCONI DELAND DEMAREST BENNETT FITZWATER ROGERS PINKERTON GRAY WINSTON HAGIN WRAY REMARKS: ANDERSON Please provide comments/edits directly to Chriss Winston, Rm. 122, x2930 no later than 4:00 PM, WEDNESDAY, JANUARY 10, with a copy to my office. Thank you. RESPONSE: OK, with suggested changes on pg.6. Peter 1111 Ed 01030.68 James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 McNally/Simon January 9, 1990 Draft Four (B:OHIO) NVC 0661 PRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE> HYATT REGENCY BALLROOM, CINCINNATI FRIDAY, JAN. 12, 1990, 1:30 P.M. [[ACKNOWLEDGEMENTS]] 18:8 We're pleased to be back in Cincinnati. Actually, I was hoping to get out here for the Reds' Opening Day. But they tell me I'm three months too early. Same problem I ran into on Pearl Harbor Day. It is fitting that, in the days leading up to the State of the Union Address, we should meet again in Cincinnati. The last time I visited was in November 1988, in the final days of the Presidential campaign. And earlier, Cincinnati was one of my last stops before the convention in New Orleans. On the trip before that we spent a morning at Proctor and Gamble's R & D facility. They taught me a trick every President wants to know: How to put toothpaste back into the tube. All in all I came here four times during the Presidential campaign. I talked of America's future, and of future generations. I talked of certain principles. Told you I was ready to make the tough calls -- to use the veto where principle was involved -- and to take the heat. And today I've come back to Cincinnati to tell you I'm ready to make good on that pledge. Because up on Capitol Hill some important business has gone unfinished, promises have gone unfulfilled. We sent responsible proposals to Congress on the Big Four -- the Four C's: Capital gains. America's Children. Clean Air. 2 And Combatting crime. In some cases, that business has gone unattended for the better part of a year. And the Four C's have become MIA's -- Missing In Action in the jungles of Capitol Hill. The clock is running. Time and patience are running out. America wants it done right. America wants it done responsibly. And America wants it done now. And if it's not done right -- it will be sent back. That doesn't mean a fight. But it does mean a veto. And I'm also prepared to use the Presidential Veto to hold the line against free spending. We've seen a lot of exhilarating changes in recent months. A world no longer on the brink of war but on the brink of peace. But being on the brink isn't the same as being over the top. Some think all the answers to this year's problems can be found in the latest Washington craze -- this hypothetical windfall they're calling the "peace dividend." That's like the next-of-kin who spend the inheritance before the will is read. At best it's wishful thinking. At worst it's reckless and irresponsible. We like what's happening in Central Europe. But just as it would have been impossible -- six months ago -- to predict those thunderous changes, it's impossible today to know what will unfold in the next six months -- let alone the next six years. But in this world of change, one thing is certain: America 3 must be ready. America must be strong. And a strong America means not only a strong economy. It also means a strong defense. And if proof of that were ever needed -- we saw it last month in the courage of our troops in Panama. The "peace dividend," if there is a dividend, is not like money in the bank. It is more like an inheritance. A bonus that may come. Something to be hopeful about. But a long ways from having cash in hand. And like an inheritance, it is a special gift, a legacy not only of prosperity but also security, earned by the hard work and sacrifice of those who came before. of course, whenever an inheritance looms there are those eager to rush out and squander it -- to buy new things, to spend, spend, spend -- spending money they don't yet have. Then the bills start coming. And what was promised as a bonus becomes a burden. In Washington, that burden comes in the form of an announcement. They'll say: "It's Time to Raise Your Taxes." That's not going to happen. Because most Americans know that when found money does come along, the first thing to do is pay off your debts. Reduce the deficit. Reducing the deficit isn't just a good idea. It's what the American people want. And it's the law. The new budget must meet Gramm-Rudman requirements. It must reduce barriers to economic growth. It must keep interest rates low. Because the best anti-poverty program is a good job. And the best jobs program is a sound economy. A sound economy is a competitive economy. And to keep 4 America competitive, to fuel our continuing boom, we also need an infusion of new venture capital. That's why we need what a majority in both Houses of Congress has already voted for: A tax cut on capital gains. As the world turns to freer markets, this is no time to become wishy-washy about where America stands. The jury is no longer out. Markets work. Government controls don't. And since the debate has all but ended on this issue, perhaps our most die-hard ideologues can now turn their attention to the real question that divides America: 11 Is it Texas or Cincinnati that produces the world's best chili? of course this also is a question to be decided by the market. The economic challenge of the 90's is to make markets work better. And one of the best ways a government can do that is to do what people around the world are asking their governments to do: Get out of the way! It works. Here at home, we're in the midst of the longest peacetime economic expansion in our nation's history, an 86-month expansion that has created an astonishing 20 million new jobs since 1982. That's due to the genius of places like Cincinnati -- the Ohio River valley -- and the solid American values that have flourished here and inspired the world from Central Europe to Central America. The whole world is watching. And the whole world is ready. The headlines tell of other nations buying American. That's 5 good news -- not bad. We've been urging our own people to "Buy American" for years -- to invest in the greatest job-creating machine of the 20th century. And it's no surprise the world's investors are following suit. The results are in: America is the choice. We don't have to look elsewhere to know what works. If you want to follow the smart money advice of the 1990's, go to where the Japanese or the Europeans are going. Look at the U.S.A. Look at what the rest of the world calls "the American miracle." You saw it happen here in Cincinnati U.S.A., "The Blue Chip city," where 150,000 more people are at work than were working six years ago. Cincinnati produced its miracle the old-fashioned way -- the American way. It's an old tradition here. When he first opened his slaughterhouse in 1810, Richard Fosdick was warned that meat couldn't be cured in Cincinnati's climate. But he didn't know that it couldn't be done. He continued his experiments until he discovered the rock-salt process for curing meat -- and made this city the principal hog market of the world. Renewing our emphasis on innovation is one of the ways modern Cincinnati has prospered. You've also built a diverse economic base. Stripped away corporate fat. Renewed our emphasis on quality -- Fortune says Cincinnati makes some of the best jet engines in the world. Ultimately, these are the kind of efforts that will determine how America fares in the competitive, free-trade world of the 1990's. The way of the future is free people. The way of 6 the future is free trade. And free people and free trade is what America is all about. of course, it's not enough that trade be "free." It's also got to be fair. III And it's not enough to tear down the Berlin Wall. We've also got to tear down the tariffs and other barriers to American trade. III A global game is afoot, a game in which a Cincinnati businessman can now fly non-stop to London and Frankfurt -- any day of the week. international If the rules are fair and the same for everybody -- we can play this game. It's called "competition." We invented it. We won it before. And we're going to win it again. III Winning in the competitive 90's will take more than investing in products. We must also invest in people. That means offering every American child an education second to none. Our "Educational Excellence Act" remains one of the priorities of my Administration -- sent to Congress almost nine months ago. It calls for choice, flexibility, and accountability. And it's time Congress accounts for its inaction on this pressing issue. You in Cincinnati have acted, working to educate and train our people for the 21st century. Three years ago business, educational, and community leaders here came together to take on a mighty task: reduce the numbers of students at risk -- the Cincinnati staggering 40 percent dropout rate in public schools. 7 The result was the Cincinnati Youth Collaborative -- an intensive people-to-people "mentoring" program that many of you support, and that has already seen some early success. It has America talking. Your Governor visited one of the participating classrooms at McKinley before coming out to the Education Summit I hosted in Virginia last fall. And earlier today I had an opportunity to see the programs at Taft High School firsthand. There are other matters that require urgent attention when Congress gets back later this month. Our Clean Air Act proposals recognize that in the emerging global economy, environmental destruction knows no borders -- and that a healthy economy requires a healthy environment. And a kinder, gentler environment also means a society where every man, woman and child can live and prosper in an environment free from fear. That means freedom from crime, and especially the increasingly violent crime that's been spawned by drug abuse and trafficking. On our anti-crime package as well, it's time for Congress to act. There is much to be done in the months ahead. But as a new year begins, Americans should also pause to take some pride in what we have accomplished together. Let me suggest two areas. At home, more than anything else, a kinder, gentler nation is one in which everyone who wants a job, has a job. And today America has the lowest unemployment rate since 1973 -- and Ohio has reached its highest employment level in history. 8 Abroad, for more than 40 years, three generations of Americans have stood steadfast in a world often filled with challenge, rebuke and even insult. Firm in our belief in America's might and in America's destiny as leader of the free world, our spirit did not falter, our troops did not flinch. And today, after the watershed events of 1989, the free world we're leading is growing bigger all the time. In the past month we saw democracy restored to the brave people of Panama. We saw the powerful brought before the bar of justice. And we saw a proud people weep with gratitude over the sacrifice of American soldiers. And somehow, it seems more than a coincidence. Because in that same month, we hear that the Bald Eagle -- the American Eagle -- may soon come off the endangered species list. Ladies and gentlemen -- America is back. 11 And this time, America is back to stay. Thank you. God bless you. And God bless Cincinnati! # # #