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6
7
1
January 10, 1990
MEMORANDUM FOR CHRISS WINSTON
FROM:
BOB SIMON
R&
SUBJECT:
CINCINNATI SPEECH -- O.M.B. COMMENTS
I do not agree with OMB's changes regarding the expansion on page
4 and the unemployment rate on page 7.
On page 4, my source is Building a Better America (attached).
On page 6, my source is the 1989 Economic Report of the President
(attached). According to BLS, the average yearend unemployment
rate for 1989 was 5.3%.
I specifically asked Peter Taylor of CEA to check these figures
and you can see from his comments that he had no changes.
Let me know if you have any questions.
December 11, 1989
BUILDING A BETTER AMERICA
ACCOMPLISHMENTS OF THE BUSH ADMINISTRATION
KEEPING THE ECONOMY STRONG
Maintaining the current economic expansion with low
inflation is the key to improving standards of living, increasing
job opportunities for all Americans, and increasing investment in
productive capacity. Economic performance during this expansion
has been exceptionally good with extraordinary job growth. The
policies of the Bush Administration are designed to preserve this
strong record.
Record Peacetime Expansion: The current expansion reached 84
months in November. This is the second longest economic
expansion in U.S. history and the longest peacetime
expansion.
Job Creation: Over 20.7 million new jobs have been created
during this expansion, and this year the unemployment rate
has reached levels not seen in over 16 years. The benefits
of robust economic growth have been shared by all
demographic groups as indicated by historically low
unemployment rates for women and minorities. During this
decade, America has created more new jobs than Japan and the
nations of Western Europe combined. A higher percentage of
American adults is at work than at any other time in our
history.
Inflation Under Control: Consumer price inflation has
remained under 5 percent in each of the seven years from
1982 to 1988, and the recent slowing in economic growth to a
sustainable rate will lessen price pressures in the near
future. In the last twelve months, the CPI has increased
only 4.5 percent and, in the last three months, the index
has risen at an annual rate of only 2.6 percent.
Record Income: Real per capita disposable personal income --
personal income after taxes and inflation -- has risen 20
percent during this expansion.
Higher National Saving and Investment: Partly due to the
discipline of the Gramm-Rudman-Hollings process, the Federal
deficit has declined from 6.3 percent of GNP in fiscal year
1983 to 3.0 percent in FY 1989. The personal savings rate
averaged 5.3 percent over the first three quarters of 1989,
well above its recent low of 3.2 percent in 1987.
0
New Business Incorporations: During the first nine months
of 1989, 520,108 new corporations were formed. Ninety-eight
percent of these new corporations are small businesses. At
TABLE B-39.-Unemployment rate, 1948-88
TAI
[Percent; monthly data seasonally adjusted]
Unem-
Unemployment rate, civilian workers 2
ploy-
Year or
ment
All
Males
Females
Both
Experi-
Mar-
Women
month
rate,
civil-
Black
enced
ried
who
all
ian
16-
20
20
sexes
16-
White
Black
wage
men,
main-
Year or month
16-
and
work-
work-
Total
19
years
Total
19
years
19
other
and
spouse
tain
and
and
ers
ers
salary
pres-
fami-
years
over
years
over
years
workers
ent 3
lies
1948
3.8
3.6
9.8
3.2
4.1
8.3
3.6
9.2
3.5
5.9
4.3
1949
5.9
5.9
14.3
5.4
6.0
12.3
5.3
13.4
5.6
8.9
6.8
3.5
1950
5.2
1948
5.3
5.1
12.7
4.7
5.7
11.4
5.1
12.2
4.9
9.0
6.0
4.6
1951
3.2
1949
3.3
2.8
8.1
2.5
4.4
8.3
4.0
8.2
3.1
5.3
3.7
1.5
1952
2.9
3.0
2.8
8.9
2.4
3.6
8.0
3.2
8.5
2.8
5.4
3.4
1.4
1953
1950
2.8
2.9
2.8
7.9
2.5
3.3
7.2
2.9
7.6
2.7
4.5
3.2
1.7
1954
1951
5.4
5.5
5.3
13.5
4.9
6.0
11.4
5.5
12.6
5.0
9.9
6.2
4.0
1952
1955
4.3
4.4
4.2
11.6
3.8
4.9
10.2
4.4
11.0
3.9
8.7
4.8
2.6
1953
1956
4.0
4.1
3.8
11.1
3.4
4.8
11.2
4.2
11.1
3.6
8.3
4.4
2.3
1954
1957
4.2
4.3
4.1
12.4
3.6
4.7
10.6
4.1
11.6
3.8
7.9
4.6
2.8
1955
1958
6.6
6.8
6.8
17.1
6.2
6.8
14.3
6.1
15.9
6.1
12.6
7.3
5.1
1956
1959
5.3
5.5
5.2
15.3
4.7
5.9
13.5
5.2
14.6
4.8
10.7
5.7
3.6
1957
1958
1960
5.4
5.5
5.4
15.3
4.7
5.9
13.9
5.1
14.7
5.0
10.2
5.7
3.7
1959
1961
6.5
6.7
6.4
17.1
5.7
7.2
16.3
6.3
16.8
6.0
12.4
6.8
4.6
1962
5.4
5.5
5.2
14.7
4.6
6.2
14.6
5.4
14.7
4.9
10.9
5.6
3.6
1960
1963
5.5
5.7
5.2
17.2
4.5
6.5
17.2
5.4
17.2
5.0
10.8
5.6
3.4
1961
1964
5.0
5.2
4.6
15.8
3.9
6.2
16.6
5.2
16.2
4.6
9.6
5.0
2.8
1962
1965
4.4
4.5
4.0
14.1
3.2
5.5
15.7
4.5
14.8
4.1
8.1
4.3
2.4
1963
1966
3.7
3.8
3.2
11.7
2.5
4.8
14.1
3.8
12.8
3.4
7.3
3.5
1.9
1964
1967
3.7
3.8
3.1
12.3
2.3
5.2
13.5
4.2
12.9
3.4
7.4
3.6
1.8
4.9
1965
1968
3.5
3.6
2.9
11.6
2.2
4.8
14.0
3.8
12.7
3.2
6.7
3.4
1.6
4.4
1966
1969
3.4
3.5
2.8
11.4
2.1
4.7
13.3
3.7
12.2
3.1
6.4
3.3
1.5
4.4
1967
1968
1970
4.8
4.9
4.4
15.0
3.5
5.9
15.6
4.8
15.3
4.5
8.2
4.8
2.6
5.4
1969
1971
5.8
5.9
5.3
16.6
4.4
6.9
17.2
5.7
16.9
5.4
9.9
5.7
3.2
7.3
1972
5.5
5.6
5.0
15.9
4.0
6.6
16.7
5.4
16.2
5.1
10.0
10.4
5.3
2.8
7.2
1970
1973
4.8
4.9
4.2
13.9
3.3
6.0
15.3
4.9
14.5
4.3
9.0
9.4
4.5
2.3
7.1
1971
1974
5.5
5.6
4.9
15.6
3.8
6.7
16.6
5.5
16.0
5.0
9.9
10.5
5.3
2.7
7.0
1972
1975
8.3
8.5
7.9
20.1
6.8
9.3
19.7
8.0
19.9
7.8
13.8
14.8
8.2
5.1
10.0
1976
7.6
7.7
7.1
19.2
5.9
8.6
18.7
7.4
19.0
7.0
13.1
14.0
7.3
4.2
10.1
1977
6.9
7.1
6.3
17.3
5.2
8.2
18.3
7.0
17.8
6.2
13.1
14.0
6.6
3.6
9.4
1978
6.0
6.1
5.3
15.8
4.3
7.2
17.1
6.0
16.4
5.2
11.9
12.8
5.6
2.8
8.5
1972
1979
5.8
5.8
5.1
15.9
4.2
6.8
16.4
5.7
16.1
5.1
11.3
12.3
5.5
2.8
8.3
1973
1974
1980
7.0
7.1
6.9
18.3
5.9
7.4
17.2
6.4
17.8
6.3
13.1
14.3
6.9
4.2
9.2
1975
1981
7.5
7.6
7.4
20.1
6.3
7.9
19.0
6.8
19.6
6.7
14.2
15.6
7.3
4.3
10.4
1976
1982
9.5
9.7
9.9
24.4
8.8
9.4
21.9
8.3
23.2
8.6
17.3
18.9
9.3
6.5
11.7
1977
1983
9.5
9.6
9.9
23.3
8.9
9.2
21.3
8.1
22.4
8.4
17.8
19.5
9.2
6.5
12.2
1978
1984
7.4
7.5
7.4
19.6
6.6
7.6
18.0
6.8
18.9
6.5
14.4
15.9
7.1
4.6
10.3
1979
1985
7.1
7.2
7.0
19.5
6.2
7.4
17.6
6.6
18.6
6.2
13.7
15.1
6.8
4.3
10.4
1986
6.9
7.0
6.9
19.0
6.1
7.1
17.6
6.2
18.3
6.0
13.1
14.5
6.6
4.4
9.8
1980
1987
6.1
6.2
6.2
17.8
5.4
6.2
15.9
5.4
16.9
5.3
11.6
13.0
5.8
3.9
9.2
1981
1982
1987: Jan
6.6
6.7
6.7
18.5
6.0
6.6
16.8
5.9
17.7
5.8
12.5
14.1
6.3
4.2
9.8
1983
Feb
6.5
6.6
6.6
18.5
5.8
6.6
17.1
5.8
17.9
5.7
12.6
14.0
6.2
4.1
9.6
1984
12.4
13.9
6.1
4.1
9.7
Mar
6.4
6.5
6.6
19.0
5.7
6.5
16.6
5.7
17.8
5.6
1985
Apr
6.2
6.3
6.4
18.7
5.6
6.3
15.9
5.5
17.3
5.5
11.8
13.0
5.9
4.1
9.4
1986
May
6.2
6.3
6.4
19.6
5.6
6.2
15.6
5.4
17.6
5.4
12.1
13.7
5.9
4.0
9.5
1987
June
6.0
6.1
6.2
16.4
5.5
6.0
15.5
5.3
16.0
5.3
11.5
12.8
5.8
4.0
9.5
1987: Jan
15.8
5.2
11.4
12.7
5.8
3.8
9.3
Feb
July
6.0
6.0
6.0
15.9
5.4
6.1
15.7
5.4
Aug
5.9
6.0
6.1
17.8
5.2
6.0
14.4
5.3
16.2
5.2
11.3
12.4
5.7
3.7
9.0
Mar
5.4
16.4
5.1
10.9
12.3
5.5
3.7
8.8
Apr
Sept
5.8
5.9
5.8
17.3
5.0
6.1
15.4
Oct
5.9
6.0
5.9
17.4
5.1
6.1
16.9
5.2
17.2
5.2
10.8
12.1
5.5
3.7
8.9
May
16.0
5.2
16.6
5.1
11.0
12.2
5.5
3.5
8.5
June
Nov
5.8
5.9
5.8
17.2
5.0
6.0
Dec
5.7
5.8
5.7
17.2
4.9
5.9
14.8
5.2
16.1
4.9
10.9
12.2
5.4
3.4
8.4
July
1988: Jan
5.9
15.6
5.1
16.0
5.0
10.9
12.2
5.5
3.6
8.9
5.7
5.8
5.8
16.4
5.1
Aug
Feb
5.6
5.7
5.6
15.6
4.9
5.9
15.1
5.2
15.4
4.8
11.3
12.6
5.3
3.4
8.3
Sept
17.8
5.5
15.2
4.8
16.5
4.7
11.5
12.8
5.2
3.4
7.5
Oct
Mar
5.5
5.6
5.7
4.9
Apr
5.4
5.4
5.3
15.8
4.6
5.6
16.0
4.8
15.9
4.6
10.7
12.2
5.0
3.0
8.7
Nov
16.2
4.9
5.6
15.0
4.9
15.6
4.7
11.3
12.4
5.4
3.3
8.4
Dec
May
5.5
5.6
5.6
June
5.2
5.3
5.2
14.7
4.6
5.4
12.4
4.9
13.6
4.5
10.3
11.5
5.0
3.1
7.8
1988 Jan
Feb
5.3
4.5
5.7
13.6
5.1
15.2
4.7
10.0
11.4
5.1
3.0
8.6
July
5.4
5.4
16.6
Mar
Aug
5.5
5.6
5.6
15.9
4.9
5.6
15.8
4.8
15.8
4.9
10.0
11.3
5.3
3.4
7.4
Apr
Sept
5.3
5.4
4.5
5.5
14.7
4.8
15.7
4.8
9.4
10.8
5.1
3.1
8.1
5.3
16.7
May
Oct
5.2
5.3
5.4
16.9
4.6
5.3
12.8
4.7
14.9
4.6
9.6
11.0
5.0
3.1
7.9
June
Nov
5.3
5.4
5.4
4.8
5.3
13.1
4.8
13.9
4.6
10.0
11.2
5.1
3.4
7.6
14.5
July
Aug
2 1 Unemployed as percent of labor force including resident Armed Forces.
Sept
Unemployed as percent of civilian labor force in group specified.
, Data for 1949 and 1951-54 are for April; 1950, for March.
1989 - yearend
Oct
Nov
Note Data relate to persons 16 years of age and over.
See footnote 6 and Note, Table B-32.
Unemployed as
I
Department of Labor, Bureau of Labor Statistics.
5.3%
Note See footno
Source Departmer
352
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
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: See comments
01 : t d : 01 0103068
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)
1990 JAN
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. 11 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: 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!
Samarric
It works. Here at home, we're in the midst of the longest
85
5873
peacetime economic expansion in our nation's history, an 86 month
expansion that has created an astonishing 20 million new jobs
21
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 Eentury.
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.
We've also got to tear down the tariffs and other barriers
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 Eentury. 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.
Al-Samaric
At home, more than anything else, a kinder, gentler nation
During this expansion,
is one in which everyone who wants a job, has a job. And today
had
1974
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!
#
#
#
Roger Porter comments
McNally/Simon
January 9, 1990
Draft Four (B:OHIO)
1990 JAN -9
PRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE
HYATT REGENCY BALLROOM, CINCINNATI
FRIDAY, JAN. 12, 1990, 1:30 PoM.
[[ACKNOWLEDGEMENTS]]
31
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.
BY SPENDING
Some think all the answers to this year's problems can be
WHAT THEY ARE CALLING 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 IS A DIVIDEND,
The "peace dividend," if there is a dividend, is not like
money in the bank. It is more like an/inheritance. A bonus LEGACY that
POSSIBLE FUTURE
WILL ENABLE US TO PASS ON A BETTER WORLD TO OUR 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,
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. 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.
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.
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.
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
V
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:
ES 212 01 CHC 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)
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.
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.
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
a possible future
money in the bank. It is more like an inheritance. A bonus that
are
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 funds 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
of new spending program. and soon they have to say:
annoùncement. They 11 say: "It's Time to Raise Your Taxes." "
That's not going to happen. \\ Because most Americans know
we still mupt
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. III
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.
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.
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.
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
1/9/90
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:
S.R.
James W. Cicconi
12 : I/V 01030 68
Assistant to the President
and Deputy to the Chief of Staff
Ext. 2702
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.
[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: 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.
We've also got to tear down the tariffs and other barriers
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.
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
1/9/90
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:
Phrase "drug abuse" (as marked, puye 1) should
In changed to real "drug vsv." otherwise fine.
s, :hd 01, CEC 68
-Davinteel
James W. Cicconi
Assistant to the President
for Bill Bannetz
and Deputy to the Chief of Staff
Ext. 2702
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.
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
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:
Please see comments.
1/10/90
89 DEC 10 P4: 38
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)
1990 JAN
PRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE
HYATT REGENCY BALLROOM, CINCINNATI
FRIDAY, JAN. 12, 1990, 1:30 P.M.
8:
[[ACKNOWLEDGEMENTS]]
18
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.
a
to Cine innati in 1988
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.
remains
Because up on Capitol Hill some important business has gone
unfinished, promises have gone unfulfilled.
I
We sent responsible proposals to Congress on the Big Four
the Four C's: Capital gains. America's Children. Clean Air.
undn considuation
four areas have been
in the corgness for
2
we the
And Combatting crime.
my
proposals
in
these
to
the
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.
I will be compelled to send it back.
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. 111
And I'm also prepared to use the Presidential Veto to hold
unfettered
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
t
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.
are - extremely pleased with
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
And a strong
must be ready. America must be strong.
And
strong America
means not only 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: 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
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
good
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
?
give up.
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.
We've also got to tear down the tariffs and other barriers
to American trade.
A global game is afoot, a game in which a Cincinnati
good
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.
Mckinley
It has America talking. Your Governor visited one of the
participating classrooms at McKinley before coming out to the
High School
Education Summit I hosted in Virginia last fall. And earlier
be briefed on the Yonth Collaborative and
Grade 1
today I had an opportunity to see the programs at Taft High
School
School firsthand.
Lpromising
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
?
those who seek employment can find a
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
gripped by the cold
war,
Abroad, for more than 40 years, three generations of
and
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.
And this time,
America is back to stay
Thank you. God bless you. And God bless Cincinnati!
#
#
#
Just as the Bald Eagle is Back
Our future is holds
promisin great promise.
THE WHITE HOUSE
WASHINGTON
January 10, 1990
MEMORANDUM FOR CHRISS WINSTON
DEPUTY ASSISTANT TO THE PRESIDENT
FOR COMMUNICATIONS
FROM:
FREDERICK D. NELSON F.D.N.
ASSOCIATE COUNSEL TO THE PRESIDENT
SUBJECT:
Presidential Remarks: Cincinnati Chamber
of Commerce, Hyatt Regency Ballroom,
Cincinnati, Ohio - Friday, January 12, 1990
Counsel's Office makes no legal objections to the draft speech
for the Cincinnati Chamber of Commerce. We do observe that the
language at the bottom of page 1 and top of page 2 regarding "the
Big Four -- the Four C's" might be seen as stamping a public
priority on those four very good issues to the exclusion of other
Administration initiatives now pending before Congress (including
other "C's" such as campaign finance reform, etc.). We wonder
whether using the four C's as (non-exclusive) examples of
unfinished business might help preserve some flexibility later to
renew and reemphasize other proposals; we assume, however, that a
policy decision has been made that the identified issues truly
are the "big four."
CC: James W. Cicconi
81 01 DEC 68
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
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:
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)
1990 JAN
PRESIDENTIAL REMARKS:
CINCINNATI CHAMBER OF COMMERCE>
HYATT REGENCY BALLROOM, CINCINNATI
FRIDAY, JAN. 12, 1990, 1:30 P.M.
8:
[ACKNOWLEDGEMENTS]
31
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 Reans 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: 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. 111
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.
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.
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!
#
#
#
THE WHITE HOUSE
WASHINGTON
January 10, 1990
MEMORANDUM FOR CHRISS WINSTON
FROM:
JIM PINKERTON
SUBJECT:
Cincinnati Chamber of Commerce Draft Speech
A great, hard-hitting draft that keeps up the momentum from
the Farm Bureau speech. As that earlier speech showed, the use
of tough language critical of Congress for not acting on the
President's proposals can be very effective. The language about
Congress will be newsworthy. Unfortunately, the language about
the Peace Dividend will be even more newsworthy and will crowd
out the criticism of Congress. It doesn't seem to us that the
President -- prior to releasing the budget -- will want to
address the issue of the Peace Dividend now. We would delete all
references to the Peace Dividend (at pg. 2, paras. 11 & 12; and
at pg. 3, paras. 3 & 4).
pg. 4, para. 1, line 2 We wonder if "venture capital" is more
apt than the more general word "investment."
4,2,3
"Markets work. Government controls don't."
The temptation will be to qualify this line because, of
course, some government controls do work, and some "markets"
don't work. But the intended meaning is clear, and it would be
too bad if the concision of the line were lost. A suggestion:
if the peace dividend language stays in (although we suggest
above its removal), we could play on the earlier peace dividend
language by saying, for example, that a capital gains tax cut
will yield a "Jobs and Opportunity Dividend;" Or that the
Eastern Europeans are enjoying a "Freedom Dividend" from decades
of American and allied resolve, vigilance, sacrifice, and
preparedness.
8,4,2
The bald eagle reference is terrific.
###
89 DEC 10 P4:
MINALLY
COMMENTS
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]]
2:20 pm
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
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: 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.
We've also got to tear down the tariffs and other barriers
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
David
Fell
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
1/9/90
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:
1/10/90 Page 2- MIA "companism" might be changerous. for
obview reasons.
are 12 else SKIRT 68 chafted
James W. Cicconi
Jozew
Assistant to the President
and Deputy to the Chief of Staff
Ext. 2702
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]]
31
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: 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 àgo. 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.
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.
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.
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!
#
#
#
#2195
THE WHITE HOUSE
Office of the Press Secretary
(Cincinnati, Ohio)
For Immediate Release
January 12, 1990
REMARKS BY THE PRESIDENT
TO THE CINCINNATI CHAMBER OF COMMERCE
The Hyatt Regency Hotel
Cincinnati, Ohio
2:16 P.M. EST
THE PRESIDENT: Thank you all for that welcome back.
And, Joe, thank you, sir, for those very kind words. I'm very
pleased that both Tom Luken and Bill Gradison made their flight out
with us on Air Force One today, and they're both with us. And if
it's not inappropriate, I would ask Joe if I could ask them both to
stand out and be saluted by this audience of friends. (Applause.)
Where did Tom go? Okay, we'll let his son represent him
-- the Mayor of Cincinnati. (Laughter.)
But I'm delighted to be back in here. And it is a
nonpartisan, nonpolitical gathering -- first one I've attended in
Hamilton County like that in a long, long time. (Laughter.)
And it's good to see state Senator Stan Aronoff over
here. My friend, Bob Taft, the Commissioner; the Mayor, who is doing
a superb job, Charles Luken.
Delighted to be back here in Cincinnati. I will say to
you, Joe, that, yes, I learned a lot from that spectacular program
there at Taft, and I expect we all ought to salute the leadership of
Proctor and Gamble -- my friend, John Smale, always out front on what
I call a " Thousand Points of Light," trying to help somebody else.
But for those of you in this community who have not had a chance to
see what it is I'm talking about here, this new program of
voluntarism interacting with the best in professionalism at a school
to help lift these kids up, you ought to go take a look and you ought
to get involved. It is stimulating in every single way.
Actually, I was hoping to get out here for the Reds'
Opening Day. But they tell me I'm three months too early.
(Laughter.) Same problem I ran into on Pearl Harbor Day. (Laughter
and applause.) But here I am. And we're not here to talk baseball,
but you can claim him in Cincinnati and I'll claim him from Houston,
but I'm mighty proud of Joe Morgan making it into the Hall of Fame.
(Applause.) You got Johnny Bench and now you've got Joe.
And let me, Colonel, thank you and the Air Force for that
magnificent music and being with us here today.
You know, it is fitting, 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 of '88, 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 out at Proctor
and Gamble's R & D facility. They taught me a trick that every
president should know: How to put toothpaste back into the tube.
(Laughter.) A marvelously educational experience. (Laughter.)
MORE
- 2 -
All in all, I did come here four times during the
presidential campaign. I talked of America's future and of future
generations. I talked of certain principles. Told you that I was
ready to make the tough calls and to take the heat -- and today I've
come back to tell you that 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 a lot of
areas, but certainly in four of America's most critical areas.
Capital gains. America' 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 on Capitol Hill. The
clock is running. And America's patience is running out. And I'm
not here to assign blame; I'm here to suggest that we need to move
forward. America wants it done right. America wants it done
responsibly. And America wants it done now. And these four
initiatives represent only part of the way in which the events of
1989 will effect the coming year.
We've seen a lot of exhilarating changes in recent months
that offer new hope for world peace. It's an exciting time we're
living in, and 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 And as excited as I am about the changes
moving toward a more peaceful Europe -- Eastern Europe -- America
must be strong. And a strong America means not only a strong
economy. It still must mean a strong defense. A ready and
highly-effective defense force. And if proof of that were ever
needed, we saw it in that superb, beautifully-coordinated operation
last month; we saw it in the courage of our troops in Panama.
I welcome the dynamic changes in Eastern Europe. I
strongly support, as I bet we all do, Mr. Gorbachev's perestroika and
his commitment to peaceful change and openness -- glasnost. But this
is not the time, this is not the time that we sould naively cut the
muscle out of our defense posture. And yet some thing that all the
answers to this year's problems can be found by spending what is
called in Washington a 'peace dividend." It's like a next-of-kin who
spent the inheritance before the will is read.
And, 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's 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, to spend, to spend -- and 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 a strong defense, but still must reduce the
deficit. (Applause.) And reducing the deficit isn't just a good
idea, a sound idea, an idea of sound fiscal policy. It's what the
American people want. And, as our two Congressmen here today know,
it's the law. It's required under the Gramm-Rudman-Hollings law.
The way to reduce the deficit is to restrain the spending
MORE
- 3 -
growth and continue the economic growth. And it's not the time, as
some like to say, to go on out and raise the taxes on the working men
and women in this country. The new budget must meet Gramm-Rudman
requirements. It must reduce barriers to economic growth. It must
keep interest rates low -- and I'm not satisfied yet; I'm encouraged,
but I'm not satisfied at all. Want to see them lower. (Applause.)
And I say all this because the best poverty program -- the best
antipoverty program, if you will, is a good job. And the best jobs
program is a sound, strong central economy. (Applause.)
A sound economy is a competitive economy. And to keep
America competitive, to fuel our continuing growth -- in some areas,
boom -- we also need an infusion of new venture capital. That's why
we need a majority in both Houses of Congress -- what they've already
voted for, and I'm talking about a tax cut on capital gains.
(Applause.)
As the world turns to freer markets - and you're seeing
this happen -- some solidifying their commitment to freer markets;
countries that never had the benefit of free markets beginning to
move, taking early steps towards free markets. But as the world
moves in this direction, this is no time to become wishy-washy about
where America stands. The jury is no longer out. Markets work.
Government controls do not work. (Applause.)
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? (Laughter and applause.) Of
course, this is a question to be decided by the market -- (laughter)
-- and that's what I'm trying to tell you all here today.
The economic challenge of the '90s 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. Less regulation; fewer mandated programs from
Washington that tie the hands of our health care providers, our
educators and so many others as well.
You see, our ideas work here at home We're in the midst
of the longest peacetime expansion in the history of the United
States, 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. The headlines tell- of other nations buying American. That's
good news -- not bad news. 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, then, the world 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 1990s, go to where
the Japanese and the Europeans are going Look at the United States
of America Look at what the rest of the world, calls "the American
miracle."
You've seen it-happen. You've made it happen. You've
been a part of it happening right here in Cincinnati U.S.A., "The
Blue Chip City," where 150,000 more people are at- work than were
working six years ago - 150,000 more. 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
- 4 -
Cincinnati's climate. But he didn't know that it couldn't be done.
He continued his experiments until he discovered the r ock-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 entire world.
Ultimately, these are the kind of efforts that will
determine how America fares in the competitive, free-trade world of
'90s. The way of the future is free people. And the way of the
future, in my view, is and must be free trade. And free people and
free trade is what America is all about.
Of course, it's not enough that we say free -- that trade
simply be free. It has also got to be fair. And I am not
complacent, I am not satisfied with where things stand. We must do
better in removing barriers to Americans' goods and services, whether
those barriers be in Japan, in Western Europe, or anywhere else in
the world.
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 capitol of the world.
Winning in the competitive '90s will take more than
investing in products. We must also invest in people. And that was
what was SO moving about my experience today here at lunch. We must
invest in people. And that means offering every American child an
education second to none.
Our Education Excellence Act remains a priority of my
administration -- sent to Congress almost nine months ago. It calls
for choice, flexibility, and accountability. And 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 -- that
staggering 40 percent dropout rate in Cincinnati's public schools.
The result was what I saw today -- that Cincinnati Youth
Collaborative -- an intensive people-to-people "mentoring" program
that many of you support. And it's already seen some fantastic,
early success.
It has America talking. Your Governor visited one of the
participating classrooms at McKinley Preschool before coming out to
the Education Summit that I hosted there in Charlottesville, Virginia
last fall. And earlier today, as I said, I had this opportunity to
see the programs -- the tremendous programs -- at Taft High School
firsthand.
I guess the most moving part of it for me today was the
mentoring part. Involvement of one Cincinnatian in the life of
another. And older man, an older woman taking under his or her arm a
kid -- lifting them up, helping them when they're hurt. A beautiful
experience.
There are other matters that require urgent attention
when Congress gets back later this month. Our Clean Air Act
proposals recognize that in an emerging global economy, environmental
- 5 -
destruction knows no borders -- and that a health 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 pros} er in an
environment free from fear. And that, then, means freedom from
crime. And especially the increasingly violent crime that has been
spawned by this plague of drug abuse -- drug trafficking. Our
anticrime package as well, it's time for the Congress to act on it.
There's 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've all accomplished together. Let me suggest two areas.
At home, more than anything else -- if you had to define
it -- a kinder and 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 has
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 that we're leading is growing bigger all the time.
And in the past months we saw democracy restored to the
brave people of Panama. We want to help them enhance it and
strengthen it. We saw the powerful brought before the bar of
justice. And we took pride in the skill and the courage and yes, the
sacrifice of American soldiers.
The Panamanian operation was conducted by highly trained
troops. The best. The finest. The best trained troops in the
world. But it is not simply training, it's patriotism and it's
dedication.
I went to a couple of hostpitals in San Antonio --
Barbara and I did -- to talk to some of our wounded. And I'll never
ever forget their spirit. One kid lying there severely wounded said
-- my only regret, he said, is that I'm here, not down there with the
others. Pride in Ameica, in my view, has never been higher.
And somehow, it is more than coincidence. In the same
month, we hear that the Bald Eagle -- the American Eagle -- may soon
come off the endangered species list. HOW about that? (Applause.)
In case you don't understand it, I love my job.
(Laughter and applause.) We've got a lot to do. But as you see the
changes in Eastern Europe, see Mr. Gorbachev struggling against what
some would say, just terribly difficult odds. Things are coming our
way. They're moving toward freedom, they're moving toward democracy.
And I am proud to be at the helm.
Thank you all. God bless you. And God bless Cincinnati.
And God bless the United States of America. Thank you very, very
much. (Applause.)
END
2:37 P.M. EST
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"ocrText": "Originally Processed With FOIA(s):\nFOIA Number:\nS\nFOIA\nMARKER\nThis is not a textual record. This is used as an\nadministrative marker by the George Bush Presidential\nLibrary Staff.\nRecord Group/Collection:\nGeorge H.W. Bush Presidential Records\nCollection/Office of Origin:\nSpeechwriting, White House Office of\nSeries:\nSpeech File Draft Files\nSubseries:\nChron File, 1989-1993\nOA/ID Number:\n13516\nFolder ID Number:\n13516-002\nFolder Title:\nCincinnati Chamber of Commerce 1/12/90 [OA 4390] [2]\nStack:\nRow:\nSection:\nShelf:\nPosition:\nG\n25\n6\n7\n1\nJanuary 10, 1990\nMEMORANDUM FOR CHRISS WINSTON\nFROM:\nBOB SIMON\nR&\nSUBJECT:\nCINCINNATI SPEECH -- O.M.B. COMMENTS\nI do not agree with OMB's changes regarding the expansion on page\n4 and the unemployment rate on page 7.\nOn page 4, my source is Building a Better America (attached).\nOn page 6, my source is the 1989 Economic Report of the President\n(attached). According to BLS, the average yearend unemployment\nrate for 1989 was 5.3%.\nI specifically asked Peter Taylor of CEA to check these figures\nand you can see from his comments that he had no changes.\nLet me know if you have any questions.\nDecember 11, 1989\nBUILDING A BETTER AMERICA\nACCOMPLISHMENTS OF THE BUSH ADMINISTRATION\nKEEPING THE ECONOMY STRONG\nMaintaining the current economic expansion with low\ninflation is the key to improving standards of living, increasing\njob opportunities for all Americans, and increasing investment in\nproductive capacity. Economic performance during this expansion\nhas been exceptionally good with extraordinary job growth. The\npolicies of the Bush Administration are designed to preserve this\nstrong record.\nRecord Peacetime Expansion: The current expansion reached 84\nmonths in November. This is the second longest economic\nexpansion in U.S. history and the longest peacetime\nexpansion.\nJob Creation: Over 20.7 million new jobs have been created\nduring this expansion, and this year the unemployment rate\nhas reached levels not seen in over 16 years. The benefits\nof robust economic growth have been shared by all\ndemographic groups as indicated by historically low\nunemployment rates for women and minorities. During this\ndecade, America has created more new jobs than Japan and the\nnations of Western Europe combined. A higher percentage of\nAmerican adults is at work than at any other time in our\nhistory.\nInflation Under Control: Consumer price inflation has\nremained under 5 percent in each of the seven years from\n1982 to 1988, and the recent slowing in economic growth to a\nsustainable rate will lessen price pressures in the near\nfuture. In the last twelve months, the CPI has increased\nonly 4.5 percent and, in the last three months, the index\nhas risen at an annual rate of only 2.6 percent.\nRecord Income: Real per capita disposable personal income --\npersonal income after taxes and inflation -- has risen 20\npercent during this expansion.\nHigher National Saving and Investment: Partly due to the\ndiscipline of the Gramm-Rudman-Hollings process, the Federal\ndeficit has declined from 6.3 percent of GNP in fiscal year\n1983 to 3.0 percent in FY 1989. The personal savings rate\naveraged 5.3 percent over the first three quarters of 1989,\nwell above its recent low of 3.2 percent in 1987.\n0\nNew Business Incorporations: During the first nine months\nof 1989, 520,108 new corporations were formed. Ninety-eight\npercent of these new corporations are small businesses. At\nTABLE B-39.-Unemployment rate, 1948-88\nTAI\n[Percent; monthly data seasonally adjusted]\nUnem-\nUnemployment rate, civilian workers 2\nploy-\nYear or\nment\nAll\nMales\nFemales\nBoth\nExperi-\nMar-\nWomen\nmonth\nrate,\ncivil-\nBlack\nenced\nried\nwho\nall\nian\n16-\n20\n20\nsexes\n16-\nWhite\nBlack\nwage\nmen,\nmain-\nYear or month\n16-\nand\nwork-\nwork-\nTotal\n19\nyears\nTotal\n19\nyears\n19\nother\nand\nspouse\ntain\nand\nand\ners\ners\nsalary\npres-\nfami-\nyears\nover\nyears\nover\nyears\nworkers\nent 3\nlies\n1948\n3.8\n3.6\n9.8\n3.2\n4.1\n8.3\n3.6\n9.2\n3.5\n5.9\n4.3\n1949\n5.9\n5.9\n14.3\n5.4\n6.0\n12.3\n5.3\n13.4\n5.6\n8.9\n6.8\n3.5\n1950\n5.2\n1948\n5.3\n5.1\n12.7\n4.7\n5.7\n11.4\n5.1\n12.2\n4.9\n9.0\n6.0\n4.6\n1951\n3.2\n1949\n3.3\n2.8\n8.1\n2.5\n4.4\n8.3\n4.0\n8.2\n3.1\n5.3\n3.7\n1.5\n1952\n2.9\n3.0\n2.8\n8.9\n2.4\n3.6\n8.0\n3.2\n8.5\n2.8\n5.4\n3.4\n1.4\n1953\n1950\n2.8\n2.9\n2.8\n7.9\n2.5\n3.3\n7.2\n2.9\n7.6\n2.7\n4.5\n3.2\n1.7\n1954\n1951\n5.4\n5.5\n5.3\n13.5\n4.9\n6.0\n11.4\n5.5\n12.6\n5.0\n9.9\n6.2\n4.0\n1952\n1955\n4.3\n4.4\n4.2\n11.6\n3.8\n4.9\n10.2\n4.4\n11.0\n3.9\n8.7\n4.8\n2.6\n1953\n1956\n4.0\n4.1\n3.8\n11.1\n3.4\n4.8\n11.2\n4.2\n11.1\n3.6\n8.3\n4.4\n2.3\n1954\n1957\n4.2\n4.3\n4.1\n12.4\n3.6\n4.7\n10.6\n4.1\n11.6\n3.8\n7.9\n4.6\n2.8\n1955\n1958\n6.6\n6.8\n6.8\n17.1\n6.2\n6.8\n14.3\n6.1\n15.9\n6.1\n12.6\n7.3\n5.1\n1956\n1959\n5.3\n5.5\n5.2\n15.3\n4.7\n5.9\n13.5\n5.2\n14.6\n4.8\n10.7\n5.7\n3.6\n1957\n1958\n1960\n5.4\n5.5\n5.4\n15.3\n4.7\n5.9\n13.9\n5.1\n14.7\n5.0\n10.2\n5.7\n3.7\n1959\n1961\n6.5\n6.7\n6.4\n17.1\n5.7\n7.2\n16.3\n6.3\n16.8\n6.0\n12.4\n6.8\n4.6\n1962\n5.4\n5.5\n5.2\n14.7\n4.6\n6.2\n14.6\n5.4\n14.7\n4.9\n10.9\n5.6\n3.6\n1960\n1963\n5.5\n5.7\n5.2\n17.2\n4.5\n6.5\n17.2\n5.4\n17.2\n5.0\n10.8\n5.6\n3.4\n1961\n1964\n5.0\n5.2\n4.6\n15.8\n3.9\n6.2\n16.6\n5.2\n16.2\n4.6\n9.6\n5.0\n2.8\n1962\n1965\n4.4\n4.5\n4.0\n14.1\n3.2\n5.5\n15.7\n4.5\n14.8\n4.1\n8.1\n4.3\n2.4\n1963\n1966\n3.7\n3.8\n3.2\n11.7\n2.5\n4.8\n14.1\n3.8\n12.8\n3.4\n7.3\n3.5\n1.9\n1964\n1967\n3.7\n3.8\n3.1\n12.3\n2.3\n5.2\n13.5\n4.2\n12.9\n3.4\n7.4\n3.6\n1.8\n4.9\n1965\n1968\n3.5\n3.6\n2.9\n11.6\n2.2\n4.8\n14.0\n3.8\n12.7\n3.2\n6.7\n3.4\n1.6\n4.4\n1966\n1969\n3.4\n3.5\n2.8\n11.4\n2.1\n4.7\n13.3\n3.7\n12.2\n3.1\n6.4\n3.3\n1.5\n4.4\n1967\n1968\n1970\n4.8\n4.9\n4.4\n15.0\n3.5\n5.9\n15.6\n4.8\n15.3\n4.5\n8.2\n4.8\n2.6\n5.4\n1969\n1971\n5.8\n5.9\n5.3\n16.6\n4.4\n6.9\n17.2\n5.7\n16.9\n5.4\n9.9\n5.7\n3.2\n7.3\n1972\n5.5\n5.6\n5.0\n15.9\n4.0\n6.6\n16.7\n5.4\n16.2\n5.1\n10.0\n10.4\n5.3\n2.8\n7.2\n1970\n1973\n4.8\n4.9\n4.2\n13.9\n3.3\n6.0\n15.3\n4.9\n14.5\n4.3\n9.0\n9.4\n4.5\n2.3\n7.1\n1971\n1974\n5.5\n5.6\n4.9\n15.6\n3.8\n6.7\n16.6\n5.5\n16.0\n5.0\n9.9\n10.5\n5.3\n2.7\n7.0\n1972\n1975\n8.3\n8.5\n7.9\n20.1\n6.8\n9.3\n19.7\n8.0\n19.9\n7.8\n13.8\n14.8\n8.2\n5.1\n10.0\n1976\n7.6\n7.7\n7.1\n19.2\n5.9\n8.6\n18.7\n7.4\n19.0\n7.0\n13.1\n14.0\n7.3\n4.2\n10.1\n1977\n6.9\n7.1\n6.3\n17.3\n5.2\n8.2\n18.3\n7.0\n17.8\n6.2\n13.1\n14.0\n6.6\n3.6\n9.4\n1978\n6.0\n6.1\n5.3\n15.8\n4.3\n7.2\n17.1\n6.0\n16.4\n5.2\n11.9\n12.8\n5.6\n2.8\n8.5\n1972\n1979\n5.8\n5.8\n5.1\n15.9\n4.2\n6.8\n16.4\n5.7\n16.1\n5.1\n11.3\n12.3\n5.5\n2.8\n8.3\n1973\n1974\n1980\n7.0\n7.1\n6.9\n18.3\n5.9\n7.4\n17.2\n6.4\n17.8\n6.3\n13.1\n14.3\n6.9\n4.2\n9.2\n1975\n1981\n7.5\n7.6\n7.4\n20.1\n6.3\n7.9\n19.0\n6.8\n19.6\n6.7\n14.2\n15.6\n7.3\n4.3\n10.4\n1976\n1982\n9.5\n9.7\n9.9\n24.4\n8.8\n9.4\n21.9\n8.3\n23.2\n8.6\n17.3\n18.9\n9.3\n6.5\n11.7\n1977\n1983\n9.5\n9.6\n9.9\n23.3\n8.9\n9.2\n21.3\n8.1\n22.4\n8.4\n17.8\n19.5\n9.2\n6.5\n12.2\n1978\n1984\n7.4\n7.5\n7.4\n19.6\n6.6\n7.6\n18.0\n6.8\n18.9\n6.5\n14.4\n15.9\n7.1\n4.6\n10.3\n1979\n1985\n7.1\n7.2\n7.0\n19.5\n6.2\n7.4\n17.6\n6.6\n18.6\n6.2\n13.7\n15.1\n6.8\n4.3\n10.4\n1986\n6.9\n7.0\n6.9\n19.0\n6.1\n7.1\n17.6\n6.2\n18.3\n6.0\n13.1\n14.5\n6.6\n4.4\n9.8\n1980\n1987\n6.1\n6.2\n6.2\n17.8\n5.4\n6.2\n15.9\n5.4\n16.9\n5.3\n11.6\n13.0\n5.8\n3.9\n9.2\n1981\n1982\n1987: Jan\n6.6\n6.7\n6.7\n18.5\n6.0\n6.6\n16.8\n5.9\n17.7\n5.8\n12.5\n14.1\n6.3\n4.2\n9.8\n1983\nFeb\n6.5\n6.6\n6.6\n18.5\n5.8\n6.6\n17.1\n5.8\n17.9\n5.7\n12.6\n14.0\n6.2\n4.1\n9.6\n1984\n12.4\n13.9\n6.1\n4.1\n9.7\nMar\n6.4\n6.5\n6.6\n19.0\n5.7\n6.5\n16.6\n5.7\n17.8\n5.6\n1985\nApr\n6.2\n6.3\n6.4\n18.7\n5.6\n6.3\n15.9\n5.5\n17.3\n5.5\n11.8\n13.0\n5.9\n4.1\n9.4\n1986\nMay\n6.2\n6.3\n6.4\n19.6\n5.6\n6.2\n15.6\n5.4\n17.6\n5.4\n12.1\n13.7\n5.9\n4.0\n9.5\n1987\nJune\n6.0\n6.1\n6.2\n16.4\n5.5\n6.0\n15.5\n5.3\n16.0\n5.3\n11.5\n12.8\n5.8\n4.0\n9.5\n1987: Jan\n15.8\n5.2\n11.4\n12.7\n5.8\n3.8\n9.3\nFeb\nJuly\n6.0\n6.0\n6.0\n15.9\n5.4\n6.1\n15.7\n5.4\nAug\n5.9\n6.0\n6.1\n17.8\n5.2\n6.0\n14.4\n5.3\n16.2\n5.2\n11.3\n12.4\n5.7\n3.7\n9.0\nMar\n5.4\n16.4\n5.1\n10.9\n12.3\n5.5\n3.7\n8.8\nApr\nSept\n5.8\n5.9\n5.8\n17.3\n5.0\n6.1\n15.4\nOct\n5.9\n6.0\n5.9\n17.4\n5.1\n6.1\n16.9\n5.2\n17.2\n5.2\n10.8\n12.1\n5.5\n3.7\n8.9\nMay\n16.0\n5.2\n16.6\n5.1\n11.0\n12.2\n5.5\n3.5\n8.5\nJune\nNov\n5.8\n5.9\n5.8\n17.2\n5.0\n6.0\nDec\n5.7\n5.8\n5.7\n17.2\n4.9\n5.9\n14.8\n5.2\n16.1\n4.9\n10.9\n12.2\n5.4\n3.4\n8.4\nJuly\n1988: Jan\n5.9\n15.6\n5.1\n16.0\n5.0\n10.9\n12.2\n5.5\n3.6\n8.9\n5.7\n5.8\n5.8\n16.4\n5.1\nAug\nFeb\n5.6\n5.7\n5.6\n15.6\n4.9\n5.9\n15.1\n5.2\n15.4\n4.8\n11.3\n12.6\n5.3\n3.4\n8.3\nSept\n17.8\n5.5\n15.2\n4.8\n16.5\n4.7\n11.5\n12.8\n5.2\n3.4\n7.5\nOct\nMar\n5.5\n5.6\n5.7\n4.9\nApr\n5.4\n5.4\n5.3\n15.8\n4.6\n5.6\n16.0\n4.8\n15.9\n4.6\n10.7\n12.2\n5.0\n3.0\n8.7\nNov\n16.2\n4.9\n5.6\n15.0\n4.9\n15.6\n4.7\n11.3\n12.4\n5.4\n3.3\n8.4\nDec\nMay\n5.5\n5.6\n5.6\nJune\n5.2\n5.3\n5.2\n14.7\n4.6\n5.4\n12.4\n4.9\n13.6\n4.5\n10.3\n11.5\n5.0\n3.1\n7.8\n1988 Jan\nFeb\n5.3\n4.5\n5.7\n13.6\n5.1\n15.2\n4.7\n10.0\n11.4\n5.1\n3.0\n8.6\nJuly\n5.4\n5.4\n16.6\nMar\nAug\n5.5\n5.6\n5.6\n15.9\n4.9\n5.6\n15.8\n4.8\n15.8\n4.9\n10.0\n11.3\n5.3\n3.4\n7.4\nApr\nSept\n5.3\n5.4\n4.5\n5.5\n14.7\n4.8\n15.7\n4.8\n9.4\n10.8\n5.1\n3.1\n8.1\n5.3\n16.7\nMay\nOct\n5.2\n5.3\n5.4\n16.9\n4.6\n5.3\n12.8\n4.7\n14.9\n4.6\n9.6\n11.0\n5.0\n3.1\n7.9\nJune\nNov\n5.3\n5.4\n5.4\n4.8\n5.3\n13.1\n4.8\n13.9\n4.6\n10.0\n11.2\n5.1\n3.4\n7.6\n14.5\nJuly\nAug\n2 1 Unemployed as percent of labor force including resident Armed Forces.\nSept\nUnemployed as percent of civilian labor force in group specified.\n, Data for 1949 and 1951-54 are for April; 1950, for March.\n1989 - yearend\nOct\nNov\nNote Data relate to persons 16 years of age and over.\nSee footnote 6 and Note, Table B-32.\nUnemployed as\nI\nDepartment of Labor, Bureau of Labor Statistics.\n5.3%\nNote See footno\nSource Departmer\n352\n103015SS\nDocument No.\nWHITE HOUSE STAFFING MEMORANDUM\n1/9/90\n4:00 PM, WED., JAN 10\nDATE:\nACTION/CONCURRENCE/COMMENT DUE BY:\nPRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE\nHYATT REGENCY BALLROOM\nSUBJECT:\nCINCINNATI, OHIO\nFRIDAY, JANUARY 12, 1990\n1:30 PM\nACTION FYI\nACTION FYI\nVICE PRESIDENT\nMCCLURE\nSUNUNU\nNEWMAN\nSCOWCROFT\nPORTER\nDARMAN\nROGICH\nBATES\nUNTERMEYER\nCARD\nBOSKIN\nCICCONI\nDELAND\nDEMAREST\nBENNETT\nFITZWATER\nROGERS\nPINKERTON\nGRAY\nWINSTON\nHAGIN\nWRAY\nREMARKS:\nANDERSON\nPlease provide comments/edits directly to Chriss Winston,\nRm. 122, x2930 no later than 4:00 PM, WEDNESDAY, JANUARY 10,\nwith a copy to my office. Thank you.\nRESPONSE: See comments\n01 : t d : 01 0103068\nJames W. Cicconi\nAssistant to the President\nand Deputy to the Chief of Staff\nExt. 2702\nMcNally/Simon\nJanuary 9, 1990\nDraft Four (B:OHIO)\n1990 JAN\nPRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE>\nHYATT REGENCY BALLROOM, CINCINNATI\nFRIDAY, JAN. 12, 1990, 1:30 P.M.\n[[ACKNOWLEDGEMENTS]]\n18:8\nWe're pleased to be back in Cincinnati. Actually, I was\nhoping to get out here for the Reds' Opening Day. But they tell\nme I'm three months too early. Same problem I ran into on Pearl\nHarbor Day.\nIt is fitting that, in the days leading up to the State of\nthe Union Address, we should meet again in Cincinnati. The last\ntime I visited was in November 1988, in the final days of the\nPresidential campaign. And earlier, Cincinnati was one of my\nlast stops before the convention in New Orleans.\nOn the trip before that we spent a morning at Proctor and\nGamble's R & D facility. They taught me a trick every President\nwants to know: How to put toothpaste back into the tube.\nAll in all I came here four times during the Presidential\ncampaign. I talked of America's future, and of future\ngenerations. I talked of certain principles. Told you I was\nready to make the tough calls -- to use the veto where principle\nwas involved -- and to take the heat. And today I've come back\nto Cincinnati to tell you I'm ready to make good on that pledge.\nBecause up on Capitol Hill some important business has gone\nunfinished, promises have gone unfulfilled.\nWe sent responsible proposals to Congress on the Big Four --\nthe Four C's: Capital gains. America's Children. Clean Air.\n2\nAnd Combatting crime.\nIn some cases, that business has gone unattended for the\nbetter part of a year. And the Four C's have become MIA's --\nMissing In Action in the jungles of Capitol Hill.\nThe clock is running. Time and patience are running out.\nAmerica wants it done right.\nAmerica wants it done responsibly.\nAnd America wants it done now.\nAnd if it's not done right -- it will be sent back.\nThat doesn't mean a fight. 11 But it does mean a veto.\nAnd I'm also prepared to use the Presidential Veto to hold\nthe line against free spending.\nWe've seen a lot of exhilarating changes in recent months.\nA world no longer on the brink of war but on the brink of peace.\nBut being on the brink isn't the same as being over the top.\nSome think all the answers to this year's problems can be\nfound in the latest Washington craze -- this hypothetical\nwindfall they're calling the \"peace dividend.\" That's like the\nnext-of-kin who spend the inheritance before the will is read.\nAt best it's wishful thinking. At worst it's reckless and\nirresponsible.\nWe like what's happening in Central Europe. But just as it\nwould have been impossible -- six months ago -- to predict those\nthunderous changes, it's impossible today to know what will\nunfold in the next six months -- let alone the next six years.\nBut in this world of change, one thing is certain: America\n3\nmust be ready. America must be strong. And a strong America\nmeans not only a strong economy. It also means a strong defense.\nAnd if proof of that were ever needed -- we saw it last\nmonth in the courage of our troops in Panama.\nThe \"peace dividend,\" if there is a dividend, is not like\nmoney in the bank. It is more like an inheritance. A bonus that\nmay come. Something to be hopeful about. But a long ways from\nhaving cash in hand. And like an inheritance, it is a special\ngift, a legacy not only of prosperity but also security, earned\nby the hard work and sacrifice of those who came before.\nof course, whenever an inheritance looms there are those\neager to rush out and squander it -- to buy new things, to spend,\nspend, spend -- spending money they don't yet have. Then the\nbills start coming. And what was promised as a bonus becomes a\nburden. In Washington, that burden comes in the form of an\nannouncement. They'll say: \"It's Time to Raise Your Taxes.\"\nThat's not going to happen. Because most Americans know\nthat when found money does come along, the first thing to do is\npay off your debts. Reduce the deficit.\nReducing the deficit isn't just a good idea. It's what the\nAmerican people want. And it's the law.\nThe new budget must meet Gramm-Rudman requirements. It must\nreduce barriers to economic growth. It must keep interest rates\nlow. Because the best anti-poverty program is a good job. And\nthe best jobs program is a sound economy.\nA sound economy is a competitive economy. And to keep\n4\nAmerica competitive, to fuel our continuing boom, we also need an\ninfusion of new venture capital. That's why we need what a\nmajority in both Houses of Congress has already voted for: A tax\ncut on capital gains.\nAs the world turns to freer markets, this is no time to\nbecome wishy-washy about where America stands. The jury is no\nlonger out. Markets work. Government controls don't.\nAnd since the debate has all but ended on this issue,\nperhaps our most die-hard ideologues can now turn their attention\nto the real question that divides America: Is it Texas or\nCincinnati that produces the world's best chili? of course\nthis also is a question to be decided by the market.\nThe economic challenge of the 90's is to make markets work\nbetter. And one of the best ways a government can do that is to\ndo what people around the world are asking their governments to\ndo: Get out of the way!\nSamarric\nIt works. Here at home, we're in the midst of the longest\n85\n5873\npeacetime economic expansion in our nation's history, an 86 month\nexpansion that has created an astonishing 20 million new jobs\n21\nsince 1982.\nThat's due to the genius of places like Cincinnati -- the\nOhio River valley -- and the solid American values that have\nflourished here and inspired the world from Central Europe to\nCentral America.\nThe whole world is watching. And the whole world is ready.\nThe headlines tell of other nations buying American. That's\n5\ngood news -- not bad. We've been urging our own people to \"Buy\nAmerican\" for years -- to invest in the greatest job-creating\nmachine of the 20th Eentury.\nAnd it's no surprise the world's investors are following\nsuit. The results are in: America is the choice.\nWe don't have to look elsewhere to know what works. If you\nwant to follow the smart money advice of the 1990's, go to where\nthe Japanese or the Europeans are going. Look at the U.S.A.\nLook at what the rest of the world calls \"the American miracle.\"\nYou saw it happen here in Cincinnati U.S.A., \"The Blue Chip\ncity,\" where 150,000 more people are at work than were working\nsix years ago. Cincinnati produced its miracle the old-fashioned\nway -- the American way. It's an old tradition here. When he\nfirst opened his slaughterhouse in 1810, Richard Fosdick was\nwarned that meat couldn't be cured in Cincinnati's climate. But\nhe didn't know that it couldn't be done. He continued his\nexperiments until he discovered the rock-salt process for curing\nmeat -- and made this city the principal hog market of the world.\nRenewing our emphasis on innovation is one of the ways\nmodern Cincinnati has prospered. You've also built a diverse\neconomic base. Stripped away corporate fat. Renewed our\nemphasis on quality -- Fortune says Cincinnati makes some of the\nbest jet engines in the world.\nUltimately, these are the kind of efforts that will\ndetermine how America fares in the competitive, free-trade world\nof the 1990's. The way of the future is free people. The way of\n6\nthe future is free trade. And free people and free trade is what\nAmerica is all about.\nof course, it's not enough that trade be \"free.\"\nIt's also got to be fair.\nAnd it's not enough to tear down the Berlin Wall.\nWe've also got to tear down the tariffs and other barriers\nto American trade.\nA global game is afoot, a game in which a Cincinnati\nbusinessman can now fly non-stop to London and Frankfurt -- any\nday of the week.\nIf the rules are fair and the same for everybody -- we can\nplay this game. It's called \"competition.\" We invented it. We\nwon it before. And we're going to win it again.\nWinning in the competitive 90's will take more than\ninvesting in products. We must also invest in people. That\nmeans offering every American child an education second to none.\nOur \"Educational Excellence Act\" remains one of the\npriorities of my Administration -- sent to Congress almost nine\nmonths ago. It calls for choice, flexibility, and\naccountability. And it's time Congress accounts for its inaction\non this pressing issue.\nYou in Cincinnati have acted, working to educate and train\nour people for the 21st Eentury. Three years ago business,\neducational, and community leaders here came together to take on\na mighty task: reduce the numbers of students at risk -- the\nstaggering 40 percent dropout rate in public schools.\n7\nThe result was the Cincinnati Youth Collaborative -- an\nintensive people-to-people \"mentoring\" program that many of you\nsupport, and that has already seen some early success.\nIt has America talking. Your Governor visited one of the\nparticipating classrooms at McKinley before coming out to the\nEducation Summit I hosted in Virginia last fall. And earlier\ntoday I had an opportunity to see the programs at Taft High\nSchool firsthand.\nThere are other matters that require urgent attention when\nCongress gets back later this month. Our Clean Air Act proposals\nrecognize that in the emerging global economy, environmental\ndestruction knows no borders -- and that a healthy economy\nrequires a healthy environment.\nAnd a kinder, gentler environment also means a society where\nevery man, woman and child can live and prosper in an environment\nfree from fear. That means freedom from crime, and especially\nthe increasingly violent crime that's been spawned by drug abuse\nand trafficking. On our anti-crime package as well, it's time\nfor Congress to act.\nThere is much to be done in the months ahead. But as a new\nyear begins, Americans should also pause to take some pride in\nwhat we have accomplished together. Let me suggest two areas.\nAl-Samaric\nAt home, more than anything else, a kinder, gentler nation\nDuring this expansion,\nis one in which everyone who wants a job, has a job. And today\nhad\n1974\nAmerica has the lowest unemployment rate since 1973-- and Ohio\nhas reached its highest employment level in history.\n8\nAbroad, for more than 40 years, three generations of\nAmericans have stood steadfast in a world often filled with\nchallenge, rebuke and even insult. Firm in our belief in\nAmerica's might and in America's destiny as leader of the free\nworld, our spirit did not falter, our troops did not flinch.\nAnd today, after the watershed events of 1989, the free\nworld we're leading is growing bigger all the time.\nIn the past month we saw democracy restored to the brave\npeople of Panama. We saw the powerful brought before the bar of\njustice. And we saw a proud people weep with gratitude over the\nsacrifice of American soldiers.\nAnd somehow, it seems more than a coincidence. Because in\nthat same month, we hear that the Bald Eagle -- the American\nEagle -- may soon come off the endangered species list.\nLadies and gentlemen -- America is back. 11 And this time,\nAmerica is back to stay.\nThank you. God bless you. And God bless Cincinnati!\n#\n#\n#\nRoger Porter comments\nMcNally/Simon\nJanuary 9, 1990\nDraft Four (B:OHIO)\n1990 JAN -9\nPRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE\nHYATT REGENCY BALLROOM, CINCINNATI\nFRIDAY, JAN. 12, 1990, 1:30 PoM.\n[[ACKNOWLEDGEMENTS]]\n31\nWe're pleased to be back in Cincinnati. Actually, I was\nhoping to get out here for the Reds' Opening Day. But they tell\nme I'm three months too early. Same problem I ran into on Pearl\nHarbor Day.\nIt is fitting that, in the days leading up to the State of\nthe Union Address, we should meet again in Cincinnati. The last\ntime I visited was in November 1988, in the final days of the\nPresidential campaign. And earlier, Cincinnati was one of my\nlast stops before the convention in New Orleans.\nOn the trip before that we spent a morning at Proctor and\nGamble's R & D facility. They taught me a trick every President\nwants to know: How to put toothpaste back into the tube.\nAll in all I came here four times during the Presidential\ncampaign. I talked of America's future, and of future\ngenerations. I talked of certain principles. Told you I was\nready to make the tough calls -- to use the veto where principle\nwas involved -- and to take the heat. And today I've come back\nto Cincinnati to tell you I'm ready to make good on that pledge.\nBecause up on Capitol Hill some important business has gone\nunfinished, promises have gone unfulfilled.\nWe sent responsible proposals to Congress on the Big Four --\nthe Four C's: Capital gains. America's Children. Clean Air.\n2\nAnd Combatting crime.\nIn some cases, that business has gone unattended for the\nbetter part of a year. And the Four C's have become MIA's --\nMissing In Action in the jungles of Capitol Hill.\nThe clock is running. Time and patience are running out.\nAmerica wants it done right.\nAmerica wants it done responsibly.\nAnd America wants it done now.\nAnd if it's not done right -- it will be sent back.\nThat doesn't mean a fight. But it does mean a veto.\nAnd I'm also prepared to use the Presidential Veto to hold\nthe line against free spending.\nWe've seen a lot of exhilarating changes in recent months.\nA world no longer on the brink of war but on the brink of peace.\nBut being on the brink isn't the same as being over the top.\nBY SPENDING\nSome think all the answers to this year's problems can be\nWHAT THEY ARE CALLING IN\nfound in the latest Washington craze this hypothetical\nwindfall they' re calling the \"peace dividend.\" That's like the\nnext-of-kin who spend the inheritance before the will is read.\nAt best it's wishful thinking. At worst it's reckless and\nirresponsible.\nWe like what's happening in Central Europe. But just as it\nwould have been impossible -- six months ago -- to predict those\nthunderous changes, it's impossible today to know what will\nunfold in the next six months -- let alone the next six years.\nBut in this world of change, one thing is certain: America\n3\nmust be ready. America must be strong. And a strong America\nmeans not only a strong economy. It also means a strong defense.\nAnd if proof of that were ever needed -- we saw it last\nmonth in the courage of our troops in Panama.\nTO THE EXTENT THERE IS A DIVIDEND,\nThe \"peace dividend,\" if there is a dividend, is not like\nmoney in the bank. It is more like an/inheritance. A bonus LEGACY that\nPOSSIBLE FUTURE\nWILL ENABLE US TO PASS ON A BETTER WORLD TO OUR CHILDREN.\nmay come. Something to be hopeful about. But a long ways from\nhaving cash in hand. And like an inheritance, it is a special\ngift, a legacy not only of prosperity but also security, earned\nby the hard work and sacrifice of those who came before.\nOf course, whenever an inheritance looms there are those\neager to rush out and squander it -- to buy new things, to spend,\nspend, spend -- spending money they don't yet have. Then the\nbills start coming. And what was promised as a bonus becomes a\nburden. In Washington, that burden comes in the form of an\nannouncement. They'll say: \"It's Time to Raise Your Taxes.\"\nThat's not going to happen. Because most Americans know\nthat when found money does come along, the first thing to do is\npay off your debts. Reduce the deficit. 11\nReducing the deficit isn't just a good idea. It's what the\nAmerican people want. And it's the law.\nThe new budget must meet Gramm-Rudman requirements. It must\nreduce barriers to economic growth. It must keep interest rates\nlow. Because the best anti-poverty program is a good job. And\nthe best jobs program is a sound economy.\nA sound economy is a competitive economy. And to keep\n4\nAmerica competitive, to fuel our continuing boom, we also need an\ninfusion of new venture capital. That's why we need what a\nmajority in both Houses of Congress has already voted for: A tax\ncut on capital gains.\nAs the world turns to freer markets, this is no time to\nbecome wishy-washy about where America stands. The jury is no\nlonger out. Markets work. Government controls don't.\nAnd since the debate has all but ended on this issue,\nperhaps our most die-hard ideologues can now turn their attention\nto the real question that divides America: Is it Texas or\nCincinnati that produces the world's best chili? of course\nthis also is a question to be decided by the market.\nThe economic challenge of the 90's is to make markets work\nbetter. And one of the best ways a government can do that is to\ndo what people around the world are asking their governments to\ndo: Get out of the way!\nIt works. Here at home, we're in the midst of the longest\npeacetime economic expansion in our nation's history, an 86-month\nexpansion that has created an astonishing 20 million new jobs\nsince 1982.\nThat's due to the genius of places like Cincinnati -- the\nOhio River valley -- and the solid American values that have\nflourished here and inspired the world from Central Europe to\nCentral America.\nThe whole world is watching. And the whole world is ready.\nThe headlines tell of other nations buying American. That's\n5\ngood news -- not bad. We've been urging our own people to \"Buy\nAmerican\" for years -- to invest in the greatest job-creating\nmachine of the 20th century.\nAnd it's no surprise the world's investors are following\nsuit. The results are in: America is the choice.\nWe don't have to look elsewhere to know what works. If you\nwant to follow the smart money advice of the 1990's, go to where\nthe Japanese or the Europeans are going. Look at the U.S.A.\nLook at what the rest of the world calls \"the American miracle.\"\nYou saw it happen here in Cincinnati U.S.A., \"The Blue Chip\nCity,\" where 150,000 more people are at work than were working\nsix years ago. Cincinnati produced its miracle the old-fashioned\nway -- the American way. It's an old tradition here. When he\nfirst opened his slaughterhouse in 1810, Richard Fosdick was\nwarned that meat couldn't be cured in Cincinnati's climate. But\nhe didn't know that it couldn't be done. He continued his\nexperiments until he discovered the rock-salt process for curing\nmeat -- and made this city the principal hog market of the world.\nRenewing our emphasis on innovation is one of the ways\nmodern Cincinnati has prospered. You've also built a diverse\neconomic base. Stripped away corporate fat. Renewed our\nemphasis on quality -- Fortune says Cincinnati makes some of the\nbest jet engines in the world.\nUltimately, these are the kind of efforts that will\ndetermine how America fares in the competitive, free-trade world\nof the 1990's. The way of the future is free people. The way of\n6\nthe future is free trade. And free people and free trade is what\nAmerica is all about.\nof course, it's not enough that trade be \"free.\"\nIt's also got to be fair.\nAnd it's not enough to tear down the Berlin Wall.\nWe've also got to tear down the tariffs and other barriers\nto American trade.\nA global game is afoot, a game in which a Cincinnati\nbusinessman can now fly non-stop to London and Frankfurt -- any\nday of the week.\nIf the rules are fair and the same for everybody -- we can\nplay this game. It's called \"competition.\" We invented it. We\nwon it before. And we're going to win it again.\nWinning in the competitive 90's will take more than\ninvesting in products. We must also invest in people. That\nmeans offering every American child an education second to none.\nOur \"Educational Excellence Act\" remains one of the\npriorities of my Administration -- sent to Congress almost nine\nmonths ago. It calls for choice, flexibility, and\naccountability. And it's time Congress accounts for its inaction\non this pressing issue.\nYou in Cincinnati have acted, working to educate and train\nour people for the 21st century. Three years ago business,\neducational, and community leaders here came together to take on\na mighty task: reduce the numbers of students at risk -- the\nstaggering 40 percent dropout rate in public schools.\n7\nThe result was the Cincinnati Youth Collaborative -- an\nintensive people-to-people \"mentoring\" program that many of you\nsupport, and that has already seen some early success.\nIt has America talking. Your Governor visited one of the\nparticipating classrooms at McKinley before coming out to the\nEducation Summit I hosted in Virginia last fall. And earlier\ntoday I had an opportunity to see the programs at Taft High\nSchool firsthand.\nThere are other matters that require urgent attention when\nCongress gets back later this month. Our Clean Air Act proposals\nrecognize that in the emerging global economy, environmental\ndestruction knows no borders -- and that a healthy economy\nrequires a healthy environment.\nAnd a kinder, gentler environment also means a society where\nevery man, woman and child can live and prosper in an environment\nfree from fear. That means freedom from crime, and especially\nthe increasingly violent crime that's been spawned by drug abuse\nand trafficking. On our anti-crime package as well, it's time\nfor Congress to act.\nThere is much to be done in the months ahead. But as a new\nyear begins, Americans should also pause to take some pride in\nwhat we have accomplished together. Let me suggest two areas.\nAt home, more than anything else, a kinder, gentler nation\nis one in which everyone who wants a job, has a job. And today\nAmerica has the lowest unemployment rate since 1973 -- and Ohio\nhas reached its highest employment level in history.\n8\nAbroad, for more than 40 years, three generations of\nAmericans have stood steadfast in a world often filled with\nchallenge, rebuke and even insult. Firm in our belief in\nAmerica's might and in America's destiny as leader of the free\nworld, our spirit did not falter, our troops did not flinch.\nAnd today, after the watershed events of 1989, the free\nworld we're leading is growing bigger all the time.\nIn the past month we saw democracy restored to the brave\npeople of Panama. We saw the powerful brought before the bar of\njustice. And we saw a proud people weep with gratitude over the\nsacrifice of American soldiers.\nAnd somehow, it seems more than a coincidence. Because in\nthat same month, we hear that the Bald Eagle -- the American\nEagle -- may soon come off the endangered species list.\nLadies and gentlemen -- America is back. 11 And this time,\nAmerica is back to stay.\nThank you. God bless you. And God bless Cincinnati!\n#\n#\n#\n103015SS\nDocument No.\nWHITE HOUSE STAFFING MEMORANDUM\nV\n1/9/90\n4:00 PM, WED., JAN 10\nDATE:\nACTION/CONCURRENCE/COMMENT DUE BY:\nPRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE\nHYATT REGENCY BALLROOM\nSUBJECT:\nCINCINNATI, OHIO\nFRIDAY, JANUARY 12, 1990\n1:30 PM\nACTION FYI\nACTION FYI\nVICE PRESIDENT\nMCCLURE\nSUNUNU\nNEWMAN\nSCOWCROFT\nPORTER\nDARMAN\nROGICH\nBATES\nUNTERMEYER\nCARD\nBOSKIN\nCICCONI\nDELAND\nDEMAREST\nBENNETT\nFITZWATER\nROGERS\nPINKERTON\nGRAY\nWINSTON\nHAGIN\nWRAY\nREMARKS:\nANDERSON\nPlease provide comments/edits directly to Chriss Winston,\nRm. 122, x2930 no later than 4:00 PM, WEDNESDAY, JANUARY 10,\nwith a copy to my office. Thank you.\nRESPONSE:\nES 212 01 CHC 68\nJames W. Cicconi\nAssistant to the President\nand Deputy to the Chief of Staff\nExt. 2702\nMcNally/Simon\nJanuary 9, 1990\nDraft Four (B:OHIO)\n1990 JAN\nPRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE>\nHYATT REGENCY BALLROOM, CINCINNATI\nFRIDAY, JAN. 12, 1990, 1:30 P.M.\n8:\n[[ACKNOWLEDGEMENTS]]\nWe're pleased to be back in Cincinnati. Actually, I was\nhoping to get out here for the Reds' Opening Day. But they tell\nme I'm three months too early. Same problem I ran into on Pearl\nHarbor Day.\nIt is fitting that, in the days leading up to the State of\nthe Union Address, we should meet again in Cincinnati. The last\ntime I visited was in November 1988, in the final days of the\nPresidential campaign. And earlier, Cincinnati was one of my\nlast stops before the convention in New Orleans.\nOn the trip before that we spent a morning at Proctor and\nGamble's R & D facility. They taught me a trick every President\nwants to know: How to put toothpaste back into the tube.\nAll in all I came here four times during the Presidential\ncampaign. I talked of America's future, and of future\ngenerations. I talked of certain principles. Told you I was\nready to make the tough calls -- to use the veto where principle\nwas involved -- and to take the heat. And today I've come back\nto Cincinnati to tell you I'm ready to make good on that pledge.\nBecause up on Capitol Hill some important business has gone\nunfinished, promises have gone unfulfilled.\nWe sent responsible proposals to Congress on the Big Four --\nthe Four C's: Capital gains. America's Children. Clean Air.\n2\nAnd Combatting crime.\nIn some cases, that business has gone unattended for the\nbetter part of a year. And the Four C's have become MIA's --\nMissing In Action in the jungles of Capitol Hill.\nThe clock is running. Time and patience are running out.\nAmerica wants it done right.\nAmerica wants it done responsibly.\nAnd America wants it done now.\nAnd if it's not done right -- it will be sent back.\nThat doesn't mean a fight. 11 But it does mean a veto%\nAnd I'm also prepared to use the Presidential Veto to hold\nthe Line against free spending.\nWe've seen a lot of exhilarating changes in recent months.\nA world no longer on the brink of war but on the brink of peace.\nBut being on the brink isn't the same as being over the top.\nSome think all the answers to this year's problems can be\nfound in the latest Washington craze -- this hypothetical\nwindfall they're calling the \"peace dividend.\" That's like the\nnext-of-kin who spend the inheritance before the will is read.\nAt best it's wishful thinking. At worst it's reckless and\nirresponsible.\nWe like what's happening in Central Europe. But just as it\nwould have been impossible -- six months ago -- to predict those\nthunderous changes, it's impossible today to know what will\nunfold in the next six months -- let alone the next six years.\nBut in this world of change, one thing is certain: America\n3\nmust be ready. America must be strong. And a strong America\nmeans not only a strong economy. It also means a strong defense.\nAnd if proof of that were ever needed -- we saw it last\nmonth in the courage of our troops in Panama.\nThe \"peace dividend,\" if there is a dividend, is not like\na possible future\nmoney in the bank. It is more like an inheritance. A bonus that\nare\nmay come. Something to be hopeful about. But ^ a long ways from\nhaving cash in hand. And like an inheritance, it is a special\ngift, a legacy not only of prosperity but also security, earned\nby the hard work and sacrifice of those who came before.\nof course, whenever an inheritance looms there are those\neager to rush out and squander it -- to buy new things, to spend,\nspend, spend -- spending funds money they don't yet have. Then the\nbills start coming. And what was promised as a bonus becomes a\nburden. In Washington, that burden comes in the form of an\nof new spending program. and soon they have to say:\nannoùncement. They 11 say: \"It's Time to Raise Your Taxes.\" \"\nThat's not going to happen. \\\\ Because most Americans know\nwe still mupt\nthat when found money does come along, the first thing to do is\npay off your debts. Reduce the deficit.\nReducing the deficit isn't just a good idea. It's what the\nAmerican people want. And it's the law.\nThe new budget must meet Gramm-Rudman requirements. It must\nreduce barriers to economic growth. It must keep interest rates\nlow. Because the best anti-poverty program is a good job. And\nthe best jobs program is a sound economy. III\nA sound economy is a competitive economy. And to keep\n4\nAmerica competitive, to fuel our continuing boom, we also need an\ninfusion of new venture capital. That's why we need what a\nmajority in both Houses of Congress has already voted for: A tax\ncut on capital gains.\nAs the world turns to freer markets, this is no time to\nbecome wishy-washy about where America stands. The jury is no\nlonger out. Markets work. Government controls don't.\nAnd since the debate has all but ended on this issue,\nperhaps our most die-hard ideologues can now turn their attention\nto the real question that divides America: Is it Texas or\nCincinnati that produces the world's best chili? of course\nthis also is a question to be decided by the market.\nThe economic challenge of the 90's is to make markets work\nbetter. And one of the best ways a government can do that is to\ndo what people around the world are asking their governments to\ndo: Get out of the way!\nIt works. Here at home, we're in the midst of the longest\npeacetime economic expansion in our nation's history, an 86-month\nexpansion that has created an astonishing 20 million new jobs\nsince 1982.\nThat's due to the genius of places like Cincinnati -- the\nOhio River valley -- and the solid American values that have\nflourished here and inspired the world from Central Europe to\nCentral America.\nThe whole world is watching. And the whole world is ready.\nThe headlines tell of other nations buying American. That's\n5\ngood news -- not bad. We've been urging our own people to \"Buy\nAmerican\" for years -- to invest in the greatest job-creating\nmachine of the 20th century.\nAnd it's no surprise the world's investors are following\nsuit. The results are in: America is the choice.\nWe don't have to look elsewhere to know what works. If you\nwant to follow the smart money advice of the 1990's, go to where\nthe Japanese or the Europeans are going. Look at the U.S.A.\nLook at what the rest of the world calls \"the American miracle.\"\nYou saw it happen here in Cincinnati U.S.A., \"The Blue Chip\nCity,\" where 150,000 more people are at work than were working\nsix years ago. Cincinnati produced its miracle the old-fashioned\nway -- the American way. It's an old tradition here. When he\nfirst opened his slaughterhouse in 1810, Richard Fosdick was\nwarned that meat couldn't be cured in Cincinnati's climate. But\nhe didn't know that it couldn't be done. He continued his\nexperiments until he discovered the rock-salt process for curing\nmeat -- and made this city the principal hog market of the world.\nRenewing our emphasis on innovation is one of the ways\nmodern Cincinnati has prospered. You've also built a diverse\neconomic base. Stripped away corporate fat. Renewed our\nemphasis on quality -- Fortune says Cincinnati makes some of the\nbest jet engines in the world.\nUltimately, these are the kind of efforts that will\ndetermine how America fares in the competitive, free-trade world\nof the 1990's. The way of the future is free people. The way of\n6\nthe future is free trade. And free people and free trade is what\nAmerica is all about.\nof course, it's not enough that trade be \"free.\"\nIt's also got to be fair.\nAnd it's not enough to tear down the Berlin Wall.\nWe've also got to tear down the tariffs and other barriers\nto American trade.\nA global game is afoot, a game in which a Cincinnati\nbusinessman can now fly non-stop to London and Frankfurt -- any\nday of the week.\nIf the rules are fair and the same for everybody -- we can\nplay this game. It's called \"competition.\" We invented it. We\nwon it before. And we're going to win it again.\nWinning in the competitive 90's will take more. than\ninvesting in products. We must also invest in people. That\nmeans offering every American child an education second to none.\nOur \"Educational Excellence Act\" remains one of the\npriorities of my Administration -- sent to Congress almost nine\nmonths ago. It calls for choice, flexibility, and\naccountability. And it's time Congress accounts for its inaction\non this pressing issue.\nYou in Cincinnati have acted, working to educate and train\nour people for the 21st century. Three years ago business,\neducational, and community leaders here came together to take on\na mighty task: reduce the numbers of students at risk -- the\nstaggering 40 percent dropout rate in public schools.\n7\nThe result was the Cincinnati Youth Collaborative -- an\nintensive people-to-people \"mentoring\" program that many of you\nsupport, and that has already seen some early success.\nIt has America talking. Your Governor visited one of the\nparticipating classrooms at McKinley before coming out to the\nEducation Summit I hosted in Virginia last fall. And earlier\ntoday I had an opportunity to see the programs at Taft High\nSchool firsthand.\nThere are other matters that require urgent attention when\nCongress gets back later this month. Our Clean Air Act proposals\nrecognize that in the emerging global economy, environmental\ndestruction knows no borders -- and that a healthy economy\nrequires a healthy environment.\nAnd a kinder, gentler environment also means a society where\nevery man, woman and child can live and prosper in an environment\nfree from fear. That means freedom from crime, and especially\nthe increasingly violent crime that's been spawned by drug abuse\nand trafficking. On our anti-crime package as well, it's time\nfor Congress to act.\nThere is much to be done in the months ahead. But as a new\nyear begins, Americans should also pause to take some pride in\nwhat we have accomplished together. Let me suggest two areas.\nAt home, more than anything else, a kinder, gentler nation\nis one in which everyone who wants a job, has a job. And today\nAmerica has the lowest unemployment rate since 1973 -- and Ohio\nhas reached its highest employment level in history.\n8\nAbroad, for more than 40 years, three generations of\nAmericans have stood steadfast in a world often filled with\nchallenge, rebuke and even insult. Firm in our belief in\nAmerica's might and in America's destiny as leader of the free\nworld, our spirit did not falter, our troops did not flinch.\nAnd today, after the watershed events of 1989, the free\nworld we're leading is growing bigger all the time.\nIn the past month we saw democracy restored to the brave\npeople of Panama. We saw the powerful brought before the bar of\njustice. And we saw a proud people weep with gratitude over the\nsacrifice of American soldiers.\nAnd somehow, it seems more than a coincidence. Because in\nthat same month, we hear that the Bald Eagle -- the American\nEagle -- may soon come off the endangered species list.\nLadies and gentlemen -- America is back. 11 And this time,\nAmerica is back to stay.\nThank you. God bless you. And God bless Cincinnati!\n#\n#\n#\n103015SS\nDocument No.\nWHITE HOUSE STAFFING MEMORANDUM\n1/9/90\n4:00 PM, WED., JAN 10\nDATE:\nACTION/CONCURRENCE/COMMENT DUE BY:\nPRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE\nHYATT REGENCY BALLROOM\nSUBJECT:\nCINCINNATI, OHIO\nFRIDAY, JANUARY 12, 1990\n1:30 PM\nACTION FYI\nACTION FYI\nVICE PRESIDENT\nMCCLURE\nSUNUNU\nNEWMAN\nSCOWCROFT\nPORTER\nDARMAN\nROGICH\nBATES\nUNTERMEYER\nCARD\nBOSKIN\nCICCONI\nDELAND\nDEMAREST\nBENNETT\nFITZWATER\nROGERS\nPINKERTON\nGRAY\nWINSTON\nHAGIN\nWRAY\nREMARKS:\nANDERSON\nPlease provide comments/edits directly to Chriss Winston,\nRm. 122, x2930 no later than 4:00 PM, WEDNESDAY, JANUARY 10,\nwith a copy to my office. Thank you.\nRESPONSE:\nS.R.\nJames W. Cicconi\n12 : I/V 01030 68\nAssistant to the President\nand Deputy to the Chief of Staff\nExt. 2702\nMcNally/Simon\nJanuary 9, 1990\nDraft Four (B:OHIO)\n1990 JAN\nPRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE>\nHYATT REGENCY BALLROOM, CINCINNATI\nFRIDAY, JAN. 12, 1990, 1:30 P.M.\n[ACKNOWLEDGEMENTS]\n18:8\nWe're pleased to be back in Cincinnati. Actually, I was\nhoping to get out here for the Reds' Opening Day. But they tell\nme I'm three months too early. Same problem I ran into on Pearl\nHarbor Day.\nIt is fitting that, in the days leading up to the State of\nthe Union Address, we should meet again in Cincinnati. The last\ntime I visited was in November 1988, in the final days of the\nPresidential campaign. And earlier, Cincinnati was one of my\nlast stops before the convention in New Orleans.\nOn the trip before that we spent a morning at Proctor and\nGamble's R & D facility. They taught me a trick every President\nwants to know: How to put toothpaste back into the tube.\nAll in all I came here four times during the Presidential\ncampaign. I talked of America's future, and of future\ngenerations. I talked of certain principles. Told you I was\nready to make the tough calls -- to use the veto where principle\nwas involved -- and to take the heat. And today I've come back\nto Cincinnati to tell you I'm ready to make good on that pledge.\nBecause up on Capitol Hill some important business has gone\nunfinished, promises have gone unfulfilled.\nWe sent responsible proposals to Congress on the Big Four --\nthe Four C's: Capital gains. America's Children. Clean Air.\n2\nAnd Combatting crime.\nIn some cases, that business has gone unattended for the\nbetter part of a year. And the Four C's have become MIA's --\nMissing In Action in the jungles of Capitol Hill.\nThe clock is running. Time and patience are running out.\nAmerica wants it done right.\nAmerica wants it done responsibly.\nAnd America wants it done now.\nAnd if it's not done right -- it will be sent back.\nThat doesn't mean a fight. But it does mean a veto.\nAnd I'm also prepared to use the Presidential Veto to hold\nthe line against free spending.\nWe've seen a lot of exhilarating changes in recent months.\nA world no longer on the brink of war but on the brink of peace.\nBut being on the brink isn't the same as being over the top.\nSome think all the answers to this year's problems can be\nfound in the latest Washington craze -- this hypothetical\nwindfall they're calling the \"peace dividend.\" That's like the\nnext-of-kin who spend the inheritance before the will is read.\nAt best it's wishful thinking. At worst it's reckless and\nirresponsible.\nWe like what's happening in Central Europe. But just as it\nwould have been impossible -- six months ago -- to predict those\nthunderous changes, it's impossible today to know what will\nunfold in the next six months -- let alone the next six years.\nBut in this world of change, one thing is certain: America\n3\nmust be ready. America must be strong. And a strong America\nmeans not only a strong economy. It also means a strong defense.\nAnd if proof of that were ever needed -- we saw it last\nmonth in the courage of our troops in Panama.\nThe \"peace dividend,\" if there is a dividend, is not like\nmoney in the bank. It is more like an inheritance. A bonus that\nmay come. Something to be hopeful about. But a long ways from\nhaving cash in hand. And like an inheritance, it is a special\ngift, a legacy not only of prosperity but also security, earned\nby the hard work and sacrifice of those who came before.\nof course, whenever an inheritance looms there are those\neager to rush out and squander it -- to buy new things, to spend,\nspend, spend -- spending money they don't yet have. Then the\nbills start coming. And what was promised as a bonus becomes a\nburden. In Washington, that burden comes in the form of an\nannouncement. They'll say: \"It's Time to Raise Your Taxes.\"\nThat's not going to happen. Because most Americans know\nthat when found money does come along, the first thing to do is\npay off your debts. Reduce the deficit.\nReducing the deficit isn't just a good idea. It's what the\nAmerican people want. And it's the law.\nThe new budget must meet Gramm-Rudman requirements. It must\nreduce barriers to economic growth. It must keep interest rates\nlow. Because the best anti-poverty program is a good job. And\nthe best jobs program is a sound economy.\nA sound economy is a competitive economy. And to keep\n4\nAmerica competitive, to fuel our continuing boom, we also need an\ninfusion of new venture capital. That's why we need what a\nmajority in both Houses of Congress has already voted for: A tax\ncut on capital gains.\nAs the world turns to freer markets, this is no time to\nbecome wishy-washy about where America stands. The jury is no\nlonger out. Markets work. Government controls don't.\nAnd since the debate has all but ended on this issue,\nperhaps our most die-hard ideologues can now turn their attention\nto the real question that divides America: Is it Texas or\nCincinnati that produces the world's best chili? of course\nthis also is a question to be decided by the market.\nThe economic challenge of the 90's is to make markets work\nbetter. And one of the best ways a government can do that is to\ndo what people around the world are asking their governments to\ndo: Get out of the way!\nIt works. Here at home, we're in the midst of the longest\npeacetime economic expansion in our nation's history, an 86-month\nexpansion that has created an astonishing 20 million new jobs\nsince 1982.\nThat's due to the genius of places like Cincinnati -- the\nOhio River valley -- and the solid American values that have\nflourished here and inspired the world from Central Europe to\nCentral America.\nThe whole world is watching. And the whole world is ready.\nThe headlines tell of other nations buying American. That's\n5\ngood news -- not bad. We've been urging our own people to \"Buy\nAmerican\" for years -- to invest in the greatest job-creating\nmachine of the 20th century.\nAnd it's no surprise the world's investors are following\nsuit. The results are in: America is the choice.\nWe don't have to look elsewhere to know what works. If you\nwant to follow the smart money advice of the 1990's, go to where\nthe Japanese or the Europeans are going. Look at the U.S.A.\nLook at what the rest of the world calls \"the American miracle.\"\nYou saw it happen here in Cincinnati U.S.A., \"The Blue Chip\nCity,\" where 150,000 more people are at work than were working\nsix years ago. Cincinnati produced its miracle the old-fashioned\nway -- the American way. It's an old tradition here. When he\nfirst opened his slaughterhouse in 1810, Richard Fosdick was\nwarned that meat couldn't be cured in Cincinnati's climate. But\nhe didn't know that it couldn't be done. He continued his\nexperiments until he discovered the rock-salt process for curing\nmeat -- and made this city the principal hog market of the world.\nRenewing our emphasis on innovation is one of the ways\nmodern Cincinnati has prospered. You've also built a diverse\neconomic base. Stripped away corporate fat. Renewed our\nemphasis on quality -- Fortune says Cincinnati makes some of the\nbest jet engines in the world.\nUltimately, these are the kind of efforts that will\ndetermine how America fares in the competitive, free-trade world\nof the 1990's. The way of the future is free people. The way of\n6\nthe future is free trade. And free people and free trade is what\nAmerica is all about.\nof course, it's not enough that trade be \"free.\"\nIt's also got to be fair.\nAnd it's not enough to tear down the Berlin Wall.\nWe've also got to tear down the tariffs and other barriers\nto American trade.\nA global game is afoot, a game in which a Cincinnati\nbusinessman can now fly non-stop to London and Frankfurt -- any\nday of the week.\nIf the rules are fair and the same for everybody -- we can\nplay this game. It's called \"competition.\" We invented it. We\nwon it before. And we're going to win it again.\nWinning in the competitive 90's will take more- than\ninvesting in products. We must also invest in people. That\nmeans offering every American child an education second to none.\nOur \"Educational Excellence Act\" remains one of the\npriorities of my Administration -- sent to Congress almost nine\nmonths ago. It calls for choice, flexibility, and\naccountability. And it's time Congress accounts for its inaction\non this pressing issue.\nYou in Cincinnati have acted, working to educate and train\nour people for the 21st century. Three years ago business,\neducational, and community leaders here came together to take on\na mighty task: reduce the numbers of students at risk -- the\nstaggering 40 percent dropout rate in public schools.\n7\nThe result was the Cincinnati Youth Collaborative -- an\nintensive people-to-people \"mentoring\" program that many of you\nsupport, and that has already seen some early success.\nIt has America talking. Your Governor visited one of the\nparticipating classrooms at McKinley before coming out to the\nEducation Summit I hosted in Virginia last fall. And earlier\ntoday I had an opportunity to see the programs at Taft High\nSchool firsthand.\nThere are other matters that require urgent attention when\nCongress gets back later this month. Our Clean Air Act proposals\nrecognize that in the emerging global economy, environmental\ndestruction knows no borders -- and that a healthy economy\nrequires a healthy environment.\nAnd a kinder, gentler environment also means a society where\nevery man, woman and child can live and prosper in an environment\nfree from fear. That means freedom from crime, and especially\nthe increasingly violent crime that's been spawned by drug abuse\nand trafficking. On our anti-crime package as well, it's time\nfor Congress to act.\nThere is much to be done in the months ahead. But as a new\nyear begins, Americans should also pause to take some pride in\nwhat we have accomplished together. Let me suggest two areas.\nAt home, more than anything else, a kinder, gentler nation\nis one in which everyone who wants a job, has a job. And today\nAmerica has the lowest unemployment rate since 1973 -- and Ohio\nhas reached its highest employment level in history.\n8\nAbroad, for more than 40 years, three generations of\nAmericans have stood steadfast in a world often filled with\nchallenge, rebuke and even insult. Firm in our belief in\nAmerica's might and in America's destiny as leader of the free\nworld, our spirit did not falter, our troops did not flinch.\nAnd today, after the watershed events of 1989, the free\nworld we're leading is growing bigger all the time.\nIn the past month we saw democracy restored to the brave\npeople of Panama. We saw the powerful brought before the bar of\njustice. And we saw a proud people weep with gratitude over the\nsacrifice of American soldiers.\nAnd somehow, it seems more than a coincidence. Because in\nthat same month, we hear that the Bald Eagle -- the American\nEagle -- may soon come off the endangered species list.\nLadies and gentlemen -- America is back. 11 And this time,\nAmerica is back to stay.\nThank you. God bless you. And God bless Cincinnati!\n#\n#\n#\n103015SS\nDocument No.\nWHITE HOUSE STAFFING MEMORANDUM\n1/9/90\n4:00 PM, WED., JAN 10\nDATE:\nACTION/CONCURRENCE/COMMENT DUE BY:\nPRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE\nHYATT REGENCY BALLROOM\nSUBJECT:\nCINCINNATI, OHIO\nFRIDAY, JANUARY 12, 1990\n1:30 PM\nACTION FYI\nACTION FYI\nVICE PRESIDENT\nMCCLURE\nSUNUNU\nNEWMAN\nSCOWCROFT\nPORTER\nDARMAN\nROGICH\nBATES\nUNTERMEYER\nCARD\nBOSKIN\nCICCONI\nDELAND\nDEMAREST\nBENNETT\nFITZWATER\nROGERS\nPINKERTON\nGRAY\nWINSTON\nHAGIN\nWRAY\nREMARKS:\nANDERSON\nPlease provide comments/edits directly to Chriss Winston,\nRm. 122, x2930 no later than 4:00 PM, WEDNESDAY, JANUARY 10,\nwith a copy to my office. Thank you.\nRESPONSE:\nPhrase \"drug abuse\" (as marked, puye 1) should\nIn changed to real \"drug vsv.\" otherwise fine.\ns, :hd 01, CEC 68\n-Davinteel\nJames W. Cicconi\nAssistant to the President\nfor Bill Bannetz\nand Deputy to the Chief of Staff\nExt. 2702\n7\nThe result was the Cincinnati Youth Collaborative -- an\nintensive people-to-people \"mentoring\" program that many of you\nsupport, and that has already seen some early success.\nIt has America talking. Your Governor visited one of the\nparticipating classrooms at McKinley before coming out to the\nEducation Summit I hosted in Virginia last fall. And earlier\ntoday I had an opportunity to see the programs at Taft High\nSchool firsthand.\nThere are other matters that require urgent attention when\nCongress gets back later this month. Our Clean Air Act proposals\nrecognize that in the emerging global economy, environmental\ndestruction knows no borders -- and that a healthy economy\nrequires a healthy environment.\nAnd a kinder, gentler environment also means a society where\nevery man, woman and child can live and prosper in an environment\nfree from fear. That means freedom from crime, and especially\nthe increasingly violent crime that's been spawned by drug abuse\nand trafficking. On our anti-crime package as well, it's time\nfor Congress to act.\nThere is much to be done in the months ahead. But as a new\nyear begins, Americans should also pause to take some pride in\nwhat we have accomplished together. Let me suggest two areas.\nAt home, more than anything else, a kinder, gentler nation\nis one in which everyone who wants a job, has a job. And today\nAmerica has the lowest unemployment rate since 1973 -- and Ohio\nhas reached its highest employment level in history.\n103015SS/\nDocument No.\nWHITE HOUSE STAFFING MEMORANDUM\n1/9/90\n4:00 PM, WED., JAN 10\nDATE:\nACTION/CONCURRENCE/COMMENT DUE BY:\nPRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE\nHYATT REGENCY BALLROOM\nSUBJECT:\nCINCINNATI, OHIO\nFRIDAY, JANUARY 12, 1990\n1:30 PM\nACTION FYI\nACTION FYI\nVICE PRESIDENT\nMCCLURE\nSUNUNU\nNEWMAN\nSCOWCROFT\nPORTER\nDARMAN\nROGICH\nBATES\nUNTERMEYER\nCARD\nBOSKIN\nCICCONI\nDELAND\nDEMAREST\nBENNETT\nFITZWATER\nROGERS\nPINKERTON\nGRAY\nHAGIN\nWINSTON\nWRAY\nREMARKS:\nANDERSON\nPlease provide comments/edits directly to Chriss Winston,\nRm. 122, x2930 no later than 4:00 PM, WEDNESDAY, JANUARY 10,\nwith a copy to my office. Thank you.\nRESPONSE:\nPlease see comments.\n1/10/90\n89 DEC 10 P4: 38\nJames W. Cicconi\nAssistant to the President\nand Deputy to the Chief of Staff\nExt. 2702\nMcNally/Simon\nJanuary 9, 1990\nDraft Four (B:OHIO)\n1990 JAN\nPRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE\nHYATT REGENCY BALLROOM, CINCINNATI\nFRIDAY, JAN. 12, 1990, 1:30 P.M.\n8:\n[[ACKNOWLEDGEMENTS]]\n18\nWe're pleased to be back in Cincinnati. Actually, I was\nhoping to get out here for the Reds' Opening Day. But they tell\nme I'm three months too early. Same problem I ran into on Pearl\nHarbor Day.\nIt is fitting that, in the days leading up to the State of\nthe Union Address, we should meet again in Cincinnati. The last\ntime I visited was in November 1988, in the final days of the\nPresidential campaign. And earlier, Cincinnati was one of my\nlast stops before the convention in New Orleans.\na\nto Cine innati in 1988\nOn the trip before that we spent a morning at Proctor and\nGamble's R & D facility. They taught me a trick every President\nwants to know: How to put toothpaste back into the tube.\nAll in all I came here four times during the Presidential\ncampaign. I talked of America's future, and of future\ngenerations. I talked of certain principles. Told you I was\nready to make the tough calls -- to use the veto where principle\nwas involved -- and to take the heat. And today I've come back\nto Cincinnati to tell you I'm ready to make good on that pledge.\nremains\nBecause up on Capitol Hill some important business has gone\nunfinished, promises have gone unfulfilled.\nI\nWe sent responsible proposals to Congress on the Big Four\nthe Four C's: Capital gains. America's Children. Clean Air.\nundn considuation\nfour areas have been\nin the corgness for\n2\nwe the\nAnd Combatting crime.\nmy\nproposals\nin\nthese\nto\nthe\nIn some cases, that business has gone unattended for the\nbetter part of a year. And the Four C's have become MIA's --\nMissing In Action in the jungles of Capitol Hill.\nThe clock is running. Time and patience are running out.\nAmerica wants it done right.\nAmerica wants it done responsibly.\nAnd America wants it done now.\nI will be compelled to send it back.\nAnd if it's not done right it will be sent back.\nThat doesn't mean a fight. 11 But it does mean a veto. 111\nAnd I'm also prepared to use the Presidential Veto to hold\nunfettered\nthe line against free spending.\n^\nWe've seen a lot of exhilarating changes in recent months.\nA world no longer on the brink of war but on the brink of peace.\nBut being on the brink isn't the same as being over the top.\nSome think all the answers to this year's problems can be\nfound in the latest Washington craze -- this hypothetical\nwindfall they're calling the \"peace dividend.\" That's like the\nt\nnext-of-kin who spend the inheritance before the will is read.\nAt best it's wishful thinking. At worst it's reckless and\nirresponsible.\nare - extremely pleased with\nWe\nlike what's happening in Central Europe. But just as it\nwould have been impossible -- six months ago -- to predict those\nthunderous changes, it's impossible today to know what will\nunfold in the next six months -- let alone the next six years.\nBut in this world of change, one thing is certain: America\n3\nAnd a strong\nmust be ready. America must be strong.\nAnd\nstrong America\nmeans not only strong economy. It also means a strong defense.\nAnd if proof of that were ever needed -- we saw it last\nmonth in the courage of our troops in Panama.\nThe \"peace dividend,\" if there is a dividend, is not like\nmoney in the bank. It is more like an inheritance. A bonus that\nmay come. Something to be hopeful about. But a long ways from\nhaving cash in hand. And like an inheritance, it is a special\ngift, a legacy not only of prosperity but also security, earned\nby the hard work and sacrifice of those who came before.\nof course, whenever an inheritance looms there are those\neager to rush out and squander it -- to buy new things, to spend,\nspend, spend -- spending money they don't yet have. Then the\nbills start coming. And what was promised as a bonus becomes a\nburden. In Washington, that burden comes in the form of an\nannouncement. They'll say: \"It's Time to Raise Your Taxes.\"\nThat's not going to happen. Because most Americans know\nthat when found money does come along, the first thing to do is\npay off your debts. Reduce the deficit.\nReducing the deficit isn't just a good idea. It's what the\nAmerican people want. And it's the law.\nThe new budget must meet Gramm-Rudman requirements. It must\nreduce barriers to economic growth. It must keep interest rates\nlow. Because the best anti-poverty program is a good job. And\nthe best jobs program is a sound economy.\nA sound economy is a competitive economy. And to keep\n4\nAmerica competitive, to fuel our continuing boom, we also need an\ninfusion of new venture capital. That's why we need what a\nmajority in both Houses of Congress has already voted for: A tax\ncut on capital gains.\nAs the world turns to freer markets, this is no time to\nbecome wishy-washy about where America stands. The jury is no\nlonger out. Markets work. Government controls don't.\nAnd since the debate has all but ended on this issue,\nperhaps our most die-hard ideologues can now turn their attention\nto the real question that divides America: Is it Texas or\nCincinnati that produces the world's best chili? of course\nthis also is a question to be decided by the market.\nThe economic challenge of the 90's is to make markets work\nbetter. And one of the best ways a government can do that is to\ndo what people around the world are asking their governments to\ndo: Get out of the way!\nIt works. Here at home, we're in the midst of the longest\npeacetime economic expansion in our nation's history, an 86-month\nexpansion that has created an astonishing 20 million new jobs\nsince 1982.\nThat's due to the genius of places like Cincinnati --\nthe\nand the solid American values that have\nflourished here and inspired the world from Central Europe to\nCentral America.\nThe whole world is watching. And the whole world is ready.\nThe headlines tell of other nations buying American. That's\n5\ngood news -- not bad. We've been urging our own people to \"Buy\nAmerican\" for years -- to invest in the greatest job-creating\nmachine of the 20th century.\nAnd it's no surprise the world's investors are following\nsuit. The results are in: America is the choice.\nWe don't have to look elsewhere to know what works. If you\nwant to follow the smart money advice of the 1990's, go to where\nthe Japanese or the Europeans are going. Look at the U.S.A.\nLook at what the rest of the world calls \"the American miracle.\"\nYou saw it happen here in Cincinnati U.S.A., \"The Blue Chip\ngood\nCity,\" where 150,000 more people are at work than were working\nsix years ago. Cincinnati produced its miracle the old-fashioned\nway -- the American way. It's an old tradition here. When he\nfirst opened his slaughterhouse in 1810, Richard Fosdick was\nwarned that meat couldn't be cured in Cincinnati's climate. But\n?\ngive up.\nhe didn't know that it couldn't be done. He continued his\nexperiments until he discovered the rock-salt process for curing\nmeat -- and made this city the principal hog market of the world.\nRenewing our emphasis on innovation is one of the ways\nmodern Cincinnati has prospered. You've also built a diverse\neconomic base. Stripped away corporate fat. Renewed our\nemphasis on quality -- Fortune says Cincinnati makes some of the\nbest jet engines in the world.\nUltimately, these are the kind of efforts that will\ndetermine how America fares in the competitive, free-trade world\nof the 1990's. The way of the future is free people. The way of\n6\nthe future is free trade. And free people and free trade is what\nAmerica is all about.\nof course, it's not enough that trade be \"free.\"\nIt's also got to be fair.\nAnd it's not enough to tear down the Berlin Wall.\nWe've also got to tear down the tariffs and other barriers\nto American trade.\nA global game is afoot, a game in which a Cincinnati\ngood\nbusinessman can now fly non-stop to London and Frankfurt -- any\nday of the week.\nIf the rules are fair and the same for everybody -- we can\nplay this game. It's called \"competition.\" We invented it. We\nwon it before. And we're going to win it again.\nWinning in the competitive 90's will take more than\ninvesting in products. We must also invest in people. That\nmeans offering every American child an education second to none.\nOur \"Educational Excellence Act\" remains one of the\npriorities of my Administration -- sent to Congress almost nine\nmonths ago. It calls for choice, flexibility, and\naccountability. And it's time Congress accounts for its inaction\non this pressing issue.\nYou in Cincinnati have acted, working to educate and train\nour people for the 21st century. Three years ago business,\neducational, and community leaders here came together to take on\na mighty task: reduce the numbers of students at risk -- the\nstaggering 40 percent dropout rate in public schools.\n7\nThe result was the Cincinnati Youth Collaborative -- an\nintensive people-to-people \"mentoring\" program that many of you\nsupport, and that has already seen some early success.\nMckinley\nIt has America talking. Your Governor visited one of the\nparticipating classrooms at McKinley before coming out to the\nHigh School\nEducation Summit I hosted in Virginia last fall. And earlier\nbe briefed on the Yonth Collaborative and\nGrade 1\ntoday I had an opportunity to see the programs at Taft High\nSchool\nSchool firsthand.\nLpromising\nThere are other matters that require urgent attention when\nCongress gets back later this month. Our Clean Air Act proposals\nrecognize that in the emerging global economy, environmental\ndestruction knows no borders -- and that a healthy economy\nrequires a healthy environment.\nAnd a kinder, gentler environment also means a society where\nevery man, woman and child can live and prosper in an environment\nfree from fear. That means freedom from crime, and especially\nthe increasingly violent crime that's been spawned by drug abuse\nand trafficking. On our anti-crime package as well, it's time\nfor Congress to act.\nThere is much to be done in the months ahead. But as a new\nyear begins, Americans should also pause to take some pride in\nwhat we have accomplished together. Let me suggest two areas.\nAt home, more than anything else, a kinder, gentler nation\n?\nthose who seek employment can find a\nis one in which everyone who wants a job, has a job. And today\nAmerica has the lowest unemployment rate since 1973 -- and Ohio\nhas reached its highest employment level in history.\n8\ngripped by the cold\nwar,\nAbroad, for more than 40 years, three generations of\nand\nAmericans have stood steadfast in a world often filled with\nchallenge, rebuke and even insult. Firm in our belief in\nAmerica's might and in America's destiny as leader of the free\nworld, our spirit did not falter, our troops did not flinch.\nAnd today, after the watershed events of 1989, the free\nworld we're leading is growing bigger all the time.\nIn the past month we saw democracy restored to the brave\npeople of Panama. We saw the powerful brought before the bar of\njustice. And we saw a proud people weep with gratitude over the\nsacrifice of American soldiers.\nAnd somehow, it seems more than a coincidence. Because in\nthat same month, we hear that the Bald Eagle -- the American\nEagle -- may soon come off the endangered species list.\nLadies and gentlemen\nAmerica is back.\nAnd this time,\nAmerica is back to stay\nThank you. God bless you. And God bless Cincinnati!\n#\n#\n#\nJust as the Bald Eagle is Back\nOur future is holds\npromisin great promise.\nTHE WHITE HOUSE\nWASHINGTON\nJanuary 10, 1990\nMEMORANDUM FOR CHRISS WINSTON\nDEPUTY ASSISTANT TO THE PRESIDENT\nFOR COMMUNICATIONS\nFROM:\nFREDERICK D. NELSON F.D.N.\nASSOCIATE COUNSEL TO THE PRESIDENT\nSUBJECT:\nPresidential Remarks: Cincinnati Chamber\nof Commerce, Hyatt Regency Ballroom,\nCincinnati, Ohio - Friday, January 12, 1990\nCounsel's Office makes no legal objections to the draft speech\nfor the Cincinnati Chamber of Commerce. We do observe that the\nlanguage at the bottom of page 1 and top of page 2 regarding \"the\nBig Four -- the Four C's\" might be seen as stamping a public\npriority on those four very good issues to the exclusion of other\nAdministration initiatives now pending before Congress (including\nother \"C's\" such as campaign finance reform, etc.). We wonder\nwhether using the four C's as (non-exclusive) examples of\nunfinished business might help preserve some flexibility later to\nrenew and reemphasize other proposals; we assume, however, that a\npolicy decision has been made that the identified issues truly\nare the \"big four.\"\nCC: James W. Cicconi\n81 01 DEC 68\n103015SS\nDocument No.\nWHITE HOUSE STAFFING MEMORANDUM\n1/9/90\n4:00 PM, WED., JAN 10\nDATE:\nACTION/CONCURRENCE/COMMENT DUE BY:\nPRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE\nHYATT REGENCY BALLROOM\nSUBJECT:\nCINCINNATI, OHIO\nFRIDAY, JANUARY 12, 1990\n1:30 PM\nACTION FYI\nACTION FYI\nVICE PRESIDENT\nMCCLURE\nSUNUNU\nNEWMAN\nSCOWCROFT\nPORTER\nDARMAN\nROGICH\nBATES\nUNTERMEYER\nCARD\nBOSKIN\nCICCONI\nDELAND\nDEMAREST\nBENNETT\nFITZWATER\nROGERS\nPINKERTON\nGRAY\nHAGIN\nWINSTON\nWRAY\nREMARKS:\nANDERSON\nPlease provide comments/edits directly to Chriss Winston,\nRm. 122, x2930 no later than 4:00 PM, WEDNESDAY, JANUARY 10,\nwith a copy to my office. Thank you.\nRESPONSE:\nJames W. Cicconi\nAssistant to the President\nand Deputy to the Chief of Staff\nExt. 2702\nMcNally/Simon\nJanuary 9, 1990\nDraft Four (B:OHIO)\n1990 JAN\nPRESIDENTIAL REMARKS:\nCINCINNATI CHAMBER OF COMMERCE>\nHYATT REGENCY BALLROOM, CINCINNATI\nFRIDAY, JAN. 12, 1990, 1:30 P.M.\n8:\n[ACKNOWLEDGEMENTS]\n31\nWe're pleased to be back in Cincinnati. Actually, I was\nhoping to get out here for the Reds' Opening Day. But they tell\nme I'm three months too early. Same problem I ran into on Pearl\nHarbor Day.\nIt is fitting that, in the days leading up to the State of\nthe Union Address, we should meet again in Cincinnati. The last\ntime I visited was in November 1988, in the final days of the\nPresidential campaign. And earlier, Cincinnati was one of my\nlast stops before the convention in New Orleans.\nOn the trip before that we spent a morning at Proctor and\nGamble's R & D facility. They taught me a trick every President\nwants to know: How to put toothpaste back into the tube.\nAll in all I came here four times during the Presidential\ncampaign. I talked of America's future, and of future\ngenerations. I talked of certain principles. Told you I was\nready to make the tough calls -- to use the veto where principle\nwas involved -- and to take the heat. And today I've come back\nto Cincinnati to tell you I'm ready to make good on that pledge.\nBecause up on Capitol Hill some important business has gone\nunfinished, promises have gone unfulfilled.\nWe sent responsible proposals to Congress on the Big Four --\nthe Four C's: Capital gains. America's Children. Clean Air.\n2\nAnd Combatting crime.\nIn some cases, that business has gone unattended for the\nbetter part of a year. And the Four C's have become MIA's --\nMissing In Action in the jungles of Capitol Hill.\nThe clock is running. Time and patience are running out.\nAmerica wants it done right.\nAmerica wants it done responsibly.\nAnd America wants it done now.\nAnd if it's not done right -- it will be sent back.\nThat doesn't mean a fight. But it does mean a veto.\nAnd I'm also prepared to use the Presidential Veto to hold\nthe line against free spending.\nWe've seen a lot of exhilarating changes in recent months.\nA world no longer on the brink of war but on the brink of peace.\nBut being on the brink isn't the same as being over the top.\nSome think all the answers to this year's problems can be\nfound in the latest Washington craze -- this hypothetical\nwindfall they're calling the \"peace dividend.\" That's like the\nnext-of-kin who spend the inheritance before the will is read.\\\\\nAt best it's wishful thinking. At worst it's reckless and\nirresponsible.\nWe like what's happening in Central Europe. But just as it\nwould have been impossible -- six months ago -- to predict those\nthunderous changes, it's impossible today to know what will\nunfold in the next six months -- let alone the next six years.\nBut in this world of change, one thing is certain: America\n3\nmust be ready. America must be strong. And a strong America\nmeans not only a strong economy. It also Reans a strong defense.\nAnd if proof of that were ever needed -- we saw it last\nmonth in the courage of our troops in Panama.\nThe \"peace dividend,\" if there is a dividend, is not like\nmoney in the bank. It is more like an inheritance. A bonus that\nmay come. Something to be hopeful about. But a long ways from\nhaving cash in hand. And like an inheritance, it is a special\ngift, a legacy not only of prosperity but also security, earned\nby the hard work and sacrifice of those who came before.\nof course, whenever an inheritance looms there are those\neager to rush out and squander it -- to buy new things, to spend,\nspend, spend -- spending money they don't yet have. Then the\nbills start coming. And what was promised as a bonus becomes a\nburden. In Washington, that burden comes in the form of an\nannouncement. They'll say: \"It's Time to Raise Your Taxes.\"\nThat's not going to happen. Because most Americans know\nthat when found money does come along, the first thing to do is\npay off your debts. Reduce the deficit.\nReducing the deficit isn't just a good idea. It's what the\nAmerican people want. And it's the law.\nThe new budget must meet Gramm-Rudman requirements. It must\nreduce barriers to economic growth. It must keep interest rates\nlow. Because the best anti-poverty program is a good job. And\nthe best jobs program is a sound economy.\nA sound economy is a competitive economy. And to keep\n4\nAmerica competitive, to fuel our continuing boom, we also need an\ninfusion of new venture capital. That's why we need what a\nmajority in both Houses of Congress has already voted for: A tax\ncut on capital gains.\nAs the world turns to freer markets, this is no time to\nbecome wishy-washy about where America stands. The jury is no\nlonger out. Markets work. Government controls don't.\nAnd since the debate has all but ended on this issue,\nperhaps our most die-hard ideologues can now turn their attention\nto the real question that divides America: Is it Texas or\nCincinnati that produces the world's best chili? of course\nthis also is a question to be decided by the market.\nThe economic challenge of the 90's is to make markets work\nbetter. And one of the best ways a government can do that is to\ndo what people around the world are asking their governments to\ndo: Get out of the way!\nIt works. Here at home, we're in the midst of the longest\npeacetime economic expansion in our nation's history, an 86-month\nexpansion that has created an astonishing 20 million new jobs\nsince 1982.\nThat's due to the genius of places like Cincinnati -- the\nOhio River valley -- and the solid American values that have\nflourished here and inspired the world from Central Europe to\nCentral America.\nThe whole world is watching. And the whole world is ready.\nThe headlines tell of other nations buying American. That's\n5\ngood news -- not bad. We've been urging our own people to \"Buy\nAmerican\" for years -- to invest in the greatest job-creating\nmachine of the 20th century.\nAnd it's no surprise the world's investors are following\nsuit. The results are in: America is the choice.\nWe don't have to look elsewhere to know what works. If you\nwant to follow the smart money advice of the 1990's, go to where\nthe Japanese or the Europeans are going. Look at the U.S.A.\nLook at what the rest of the world calls \"the American miracle.\"\nYou saw it happen here in Cincinnati U.S.A., \"The Blue Chip\nCity,\" where 150,000 more people are at work than were working\nsix years ago. Cincinnati produced its miracle the old-fashioned\nway -- the American way. It's an old tradition here. When he\nfirst opened his slaughterhouse in 1810, Richard Fosdick was\nwarned that meat couldn't be cured in Cincinnati's climate. But\nhe didn't know that it couldn't be done. He continued his\nexperiments until he discovered the rock-salt process for curing\nmeat -- and made this city the principal hog market of the world.\nRenewing our emphasis on innovation is one of the ways\nmodern Cincinnati has prospered. You've also built a diverse\neconomic base. Stripped away corporate fat. Renewed our\nemphasis on quality -- Fortune says Cincinnati makes some of the\nbest jet engines in the world.\nUltimately, these are the kind of efforts that will\ndetermine how America fares in the competitive, free-trade world\nof the 1990's. The way of the future is free people. The way of\n6\nthe future is free trade. And free people and free trade is what\nAmerica is all about.\nof course, it's not enough that trade be \"free.\"\nIt's also got to be fair. 111\nAnd it's not enough to tear down the Berlin Wall.\nWe've also got to tear down the tariffs and other barriers\nto American trade.\nA global game is afoot, a game in which a Cincinnati\nbusinessman can now fly non-stop to London and Frankfurt -- any\nday of the week.\nIf the rules are fair and the same for everybody -- we can\nplay this game. It's called \"competition.\" We invented it. We\nwon it before. And we're going to win it again.\nWinning in the competitive 90's will take more. than\ninvesting in products. We must also invest in people. That\nmeans offering every American child an education second to none.\nOur \"Educational Excellence Act\" remains one of the\npriorities of my Administration -- sent to Congress almost nine\nmonths ago. It calls for choice, flexibility, and\naccountability. And it's time Congress accounts for its inaction\non this pressing issue.\nYou in Cincinnati have acted, working to educate and train\nour people for the 21st century. Three years ago business,\neducational, and community leaders here came together to take on\na mighty task: reduce the numbers of students at risk -- the\nstaggering 40 percent dropout rate in public schools.\n7\nThe result was the Cincinnati Youth Collaborative -- an\nintensive people-to-people \"mentoring\" program that many of you\nsupport, and that has already seen some early success.\nIt has America talking. Your Governor visited one of the\nparticipating classrooms at McKinley before coming out to the\nEducation Summit I hosted in Virginia last fall. And earlier\ntoday I had an opportunity to see the programs at Taft High\nSchool firsthand.\nThere are other matters that require urgent attention when\nCongress gets back later this month. Our Clean Air Act proposals\nrecognize that in the emerging global economy, environmental\ndestruction knows no borders -- and that a healthy economy\nrequires a healthy environment.\nAnd a kinder, gentler environment also means a society where\nevery man, woman and child can live and prosper in an environment\nfree from fear. That means freedom from crime, and especially\nthe increasingly violent crime that's been spawned by drug abuse\nand trafficking. On our anti-crime package as well, it's time\nfor Congress to act.\nThere is much to be done in the months ahead. But as a new\nyear begins, Americans should also pause to take some pride in\nwhat we have accomplished together. Let me suggest two areas.\nAt home, more than anything else, a kinder, gentler nation\nis one in which everyone who wants a job, has a job. And today\nAmerica has the lowest unemployment rate since 1973 -- and Ohio\nhas reached its highest employment level in history.\n8\nAbroad, for more than 40 years, three generations of\nAmericans have stood steadfast in a world often filled with\nchallenge, rebuke and even insult. Firm in our belief in\nAmerica's might and in America's destiny as leader of the free\nworld, our spirit did not falter, our troops did not flinch.\nAnd today, after the watershed events of 1989, the free\nworld we're leading is growing bigger all the time.\nIn the past month we saw democracy restored to the brave\npeople of Panama. We saw the powerful brought before the bar of\njustice. And we saw a proud people weep with gratitude over the\nsacrifice of American soldiers.\nAnd somehow, it seems more than a coincidence. Because in\nthat same month, we hear that the Bald Eagle -- the American\nEagle -- may soon come off the endangered species list.\nLadies and gentlemen -- America is back. 11 And this time,\nAmerica is back to stay.\nThank you. God bless you. And God bless Cincinnati!\n#\n#\n#\nTHE WHITE HOUSE\nWASHINGTON\nJanuary 10, 1990\nMEMORANDUM FOR CHRISS WINSTON\nFROM:\nJIM PINKERTON\nSUBJECT:\nCincinnati Chamber of Commerce Draft Speech\nA great, hard-hitting draft that keeps up the momentum from\nthe Farm Bureau speech. As that earlier speech showed, the use\nof tough language critical of Congress for not acting on the\nPresident's proposals can be very effective. The language about\nCongress will be newsworthy. Unfortunately, the language about\nthe Peace Dividend will be even more newsworthy and will crowd\nout the criticism of Congress. It doesn't seem to us that the\nPresident -- prior to releasing the budget -- will want to\naddress the issue of the Peace Dividend now. We would delete all\nreferences to the Peace Dividend (at pg. 2, paras. 11 & 12; and\nat pg. 3, paras. 3 & 4).\npg. 4, para. 1, line 2 We wonder if \"venture capital\" is more\napt than the more general word \"investment.\"\n4,2,3\n\"Markets work. Government controls don't.\"\nThe temptation will be to qualify this line because, of\ncourse, some government controls do work, and some \"markets\"\ndon't work. But the intended meaning is clear, and it would be\ntoo bad if the concision of the line were lost. A suggestion:\nif the peace dividend language stays in (although we suggest\nabove its removal), we could play on the earlier peace dividend\nlanguage by saying, for example, that a capital gains tax cut\nwill yield a \"Jobs and Opportunity Dividend;\" Or that the\nEastern Europeans are enjoying a \"Freedom Dividend\" from decades\nof American and allied resolve, vigilance, sacrifice, and\npreparedness.\n8,4,2\nThe bald eagle reference is terrific.\n###\n89 DEC 10 P4:\nMINALLY\nCOMMENTS\nMcNally/Simon\nJanuary 9, 1990\nDraft Four (B:OHIO)\nPRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE\nHYATT REGENCY BALLROOM, CINCINNATI\nFRIDAY, JAN. 12, 1990, 1:30 P.M.\n[[ACKNOWLEDGEMENTS]]\n2:20 pm\nWe're pleased to be back in Cincinnati. Actually, I was\nhoping to get out here for the Reds' Opening Day. But they tell\nme I'm three months too early. Same problem I ran into on Pearl\nHarbor Day.\nIt is fitting that, in the days leading up to the State of\nthe Union Address, we should meet again in Cincinnati. The last\ntime I visited was in November 1988, in the final days of the\nPresidential campaign. And earlier, Cincinnati was one of my\nlast stops before the convention in New Orleans.\nOn the trip before that we spent a morning at Proctor and\nGamble's R & D facility. They taught me a trick every President\nshould\nwants to know: How to put toothpaste back into the tube.\nAll in all I came here four times during the Presidential\ncampaign. I talked of America's future, and of future\ngenerations. I talked of certain principles. Told you I was\nready to make the tough calls -- to use the veto where principle\nwas involved -- and to take the heat. And today I've come back\nto Cincinnati to tell you I'm ready to make good on that pledge.\nBecause up on Capitol Hill some important business has gone\nunfinished, promises have gone unfulfilled.\nWe sent responsible proposals to Congress on the Big Four --\nthe Four C's: Capital gains. America's Children. Clean Air.\n2\nAnd Combatting crime.\nIn some cases, that business has gone unattended for the\nbetter part of a year. And the Four C's have become MIA's --\nMissing In Action in the jungles of Capitol Hill.\nThe clock is running. Time and patience are running out.\nAmerica wants it done right.\nAmerica wants it done responsibly.\nAnd America wants it done now.\nAnd if it's not done right -- it will be sent back.\nThat doesn't mean a fight. But it does mean a veto.\nAnd I'm also prepared to use the Presidential Veto to hold\nthe line against free spending.\nWe've seen a lot of exhilarating changes in recent months.\nA world no longer on the brink of war but on the brink of peace.\nBut being on the brink isn't the same as being over the top.\nSome think all the answers to this year's problems can be\nfound in the latest Washington craze -- this hypothetical\nwindfall they're calling the \"peace dividend.\" That's like the\nnext-of-kin who spend the inheritance before the will is read.\\\\\nAt best it's wishful thinking. At worst it's reckless and\nirresponsible.\nWe like what's happening in Central Europe. But just as it\nwould have been impossible -- six months ago -- to predict those\nthunderous changes, it's impossible today to know what will\nunfold in the next six months -- let alone the next six years.\nBut in this world of change, one thing is certain: America\n3\nmust be ready. America must be strong. And a strong America\nmeans not only a strong economy. It also means a strong defense.\nAnd if proof of that were ever needed -- we saw it last\nmonth in the courage of our troops in Panama.\nThe \"peace dividend,\" if there is a dividend, is not like\nmoney in the bank. It is more like an inheritance. A bonus that\nmay come. Something to be hopeful about. But a long ways from\nhaving cash in hand. And like an inheritance, it is a special\ngift, a legacy not only of prosperity but also security, earned\nby the hard work and sacrifice of those who came before.\nof course, whenever an inheritance looms there are those\neager to rush out and squander it -- to buy new things, to spend,\nspend, spend -- spending money they don't yet have. Then the\nbills start coming. And what was promised as a bonus becomes a\nburden. In Washington, that burden comes in the form of an\nannouncement. They'll say: \"It's Time to Raise Your Taxes.\"\nThat's not going to happen. Because most Americans know\nthat when found money does come along, the first thing to do is\npay off your debts. Reduce the deficit.\nReducing the deficit isn't just a good idea. It's what the\nAmerican people want. And it's the law.\nThe new budget must meet Gramm-Rudman requirements. It must\nreduce barriers to economic growth. It must keep interest rates\nlow. Because the best anti-poverty program is a good job. And\nthe best jobs program is a sound economy.\nA sound economy is a competitive economy. And to keep\n4\nAmerica competitive, to fuel our continuing boom, we also need an\ninfusion of new venture capital. That's why we need what a\nmajority in both Houses of Congress has already voted for: A tax\ncut on capital gains.\nAs the world turns to freer markets, this is no time to\nbecome wishy-washy about where America stands. The jury is no\nlonger out. Markets work. Government controls don't.\nAnd since the debate has all but ended on this issue,\nperhaps our most die-hard ideologues can now turn their attention\nto the real question that divides America: Is it Texas or\nCincinnati that produces the world's best chili? Of course\nthis also is a question to be decided by the market.\nThe economic challenge of the 90's is to make markets work\nbetter. And one of the best ways a government can do that is to\ndo what people around the world are asking their governments to\ndo: Get out of the way!\nIt works. Here at home, we're in the midst of the longest\npeacetime economic expansion in our nation's history, an 86-month\nexpansion that has created an astonishing 20 million new jobs\nsince 1982.\nThat's due to the genius of places like Cincinnati -- the\nOhio River valley -- and the solid American values that have\nflourished here and inspired the world from Central Europe to\nCentral America.\nThe whole world is watching. And the whole world is ready.\nThe headlines tell of other nations buying American. That's\n5\ngood news -- not bad. We've been urging our own people to \"Buy\nAmerican\" for years -- to invest in the greatest job-creating\nmachine of the 20th century.\nAnd it's no surprise the world's investors are following\nsuit. The results are in: America is the choice.\nWe don't have to look elsewhere to know what works. If you\nwant to follow the smart money advice of the 1990's, go to where\nthe Japanese or the Europeans are going. Look at the U.S.A.\nLook at what the rest of the world calls \"the American miracle.\"\nYou saw it happen here in Cincinnati U.S.A., \"The Blue Chip\nCity,\" where 150,000 more people are at work than were working\nsix years ago. Cincinnati produced its miracle the old-fashioned\nway -- the American way. It's an old tradition here. When he\nfirst opened his slaughterhouse in 1810, Richard Fosdick was\nwarned that meat couldn't be cured in Cincinnati's climate. But\nhe didn't know that it couldn't be done. He continued his\nexperiments until he discovered the rock-salt process for curing\nmeat -- and made this city the principal hog market of the world.\nRenewing our emphasis on innovation is one of the ways\nmodern Cincinnati has prospered. You've also built a diverse\neconomic base. Stripped away corporate fat. Renewed our\nemphasis on quality -- Fortune says Cincinnati makes some of the\nbest jet engines in the world.\nUltimately, these are the kind of efforts that will\ndetermine how America fares in the competitive, free-trade world\nof the 1990's. The way of the future is free people. The way of\n6\nthe future is free trade. And free people and free trade is what\nAmerica is all about.\nof course, it's not enough that trade be \"free.\"\nIt's also got to be fair.\nAnd it's not enough to tear down the Berlin Wall.\nWe've also got to tear down the tariffs and other barriers\nto American trade.\nA global game is afoot, a game in which a Cincinnati\nbusinessman can now fly non-stop to London and Frankfurt -- any\nday of the week.\nIf the rules are fair and the same for everybody -- we can\nplay this game. It's called \"competition.\" We invented it. We\nwon it before. And we're going to win it again.\nWinning in the competitive 90's will take more than\ninvesting in products. We must also invest in people. That\nmeans offering every American child an education second to none.\nOur \"Educational Excellence Act\" remains one of the\npriorities of my Administration -- sent to Congress almost nine\nmonths ago. It calls for choice, flexibility, and\naccountability. And it's time Congress accounts for its inaction\non this pressing issue.\nYou in Cincinnati have acted, working to educate and train\nour people for the 21st century. Three years ago business,\neducational, and community leaders here came together to take on\na mighty task: reduce the numbers of students at risk -- the\nstaggering 40 percent dropout rate in public schools.\n7\nThe result was the Cincinnati Youth Collaborative -- an\nintensive people-to-people \"mentoring\" program that many of you\nsupport, and that has already seen some early success.\nIt has America talking. Your Governor visited one of the\nparticipating classrooms at McKinley before coming out to the\nEducation Summit I hosted in Virginia last fall. And earlier\ntoday I had an opportunity to see the programs at Taft High\nSchool firsthand.\nThere are other matters that require urgent attention when\nCongress gets back later this month. Our Clean Air Act proposals\nrecognize that in the emerging global economy, environmental\ndestruction knows no borders -- and that a healthy economy\nrequires a healthy environment.\nAnd a kinder, gentler environment also means a society where\nevery man, woman and child can live and prosper in an environment\nfree from fear. That means freedom from crime, and especially\nthe increasingly violent crime that's been spawned by drug abuse\nDavid\nFell\nand trafficking. On our anti-crime package as well, it's time\nfor Congress to act.\nThere is much to be done in the months ahead. But as a new\nyear begins, Americans should also pause to take some pride in\nwhat we have accomplished together. Let me suggest two areas.\nAt home, more than anything else, a kinder, gentler nation\nis one in which everyone who wants a job, has a job. And today\nAmerica has the lowest unemployment rate since 1973 -- and Ohio\nhas reached its highest employment level in history.\n8\nAbroad, for more than 40 years, three generations of\nAmericans have stood steadfast in a world often filled with\nchallenge, rebuke and even insult. Firm in our belief in\nAmerica's might and in America's destiny as leader of the free\nworld, our spirit did not falter, our troops did not flinch.\nAnd today, after the watershed events of 1989, the free\nworld we're leading is growing bigger all the time.\nIn the past month we saw democracy restored to the brave\npeople of Panama. We saw the powerful brought before the bar of\njustice. And we saw a proud people weep with gratitude over the\nsacrifice of American soldiers.\nAnd somehow, it seems more than a coincidence. Because in\nthat same month, we hear that the Bald Eagle -- the American\nEagle -- may soon come off the endangered species list.\nLadies and gentlemen -- America is back. 11 And this time,\nAmerica is back to stay.\nThank you. God bless you. And God bless Cincinnati!\n#\n#\n#\n103015SS\nDocument No.\nWHITE HOUSE STAFFING MEMORANDUM\n1/9/90\n4:00 PM, WED., JAN 10\nDATE:\nACTION/CONCURRENCE/COMMENT DUE BY:\nPRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE\nHYATT REGENCY BALLROOM\nSUBJECT:\nCINCINNATI, OHIO\nFRIDAY, JANUARY 12, 1990\n1:30 PM\nACTION FYI\nACTION FYI\nVICE PRESIDENT\nMCCLURE\nSUNUNU\nNEWMAN\nSCOWCROFT\nPORTER\nDARMAN\nROGICH\nBATES\nUNTERMEYER\nCARD\nBOSKIN\nCICCONI\nDELAND\nDEMAREST\nBENNETT\nFITZWATER\nROGERS\nPINKERTON\nGRAY\nWINSTON\nHAGIN\nWRAY\nREMARKS:\nANDERSON\nPlease provide comments/edits directly to Chriss Winston,\nRm. 122, x2930 no later than 4:00 PM, WEDNESDAY, JANUARY 10,\nwith a copy to my office. Thank you.\nRESPONSE:\n1/10/90 Page 2- MIA \"companism\" might be changerous. for\nobview reasons.\nare 12 else SKIRT 68 chafted\nJames W. Cicconi\nJozew\nAssistant to the President\nand Deputy to the Chief of Staff\nExt. 2702\nMcNally/Simon\nJanuary 9, 1990\nDraft Four (B:OHIO)\n1990 JAN\nPRESIDENTIAL REMARKS: CINCINNATI CHAMBER OF COMMERCE>\nHYATT REGENCY BALLROOM, CINCINNATI\nFRIDAY, JAN. 12, 1990, 1:30 P.M.\n8:\n[[ACKNOWLEDGEMENTS]]\n31\nWe're pleased to be back in Cincinnati. Actually, I was\nhoping to get out here for the Reds' Opening Day. But they tell\nme I'm three months too early. Same problem I ran into on Pearl\nHarbor Day.\nIt is fitting that, in the days leading up to the State of\nthe Union Address, we should meet again in Cincinnati. The last\ntime I visited was in November 1988, in the final days of the\nPresidential campaign. And earlier, Cincinnati was one of my\nlast stops before the convention in New Orleans.\nOn the trip before that we spent a morning at Proctor and\nGamble's R & D facility. They taught me a trick every President\nwants to know: How to put toothpaste back into the tube.\nAll in all I came here four times during the Presidential\ncampaign. I talked of America's future, and of future\ngenerations. I talked of certain principles. Told you I was\nready to make the tough calls -- to use the veto where principle\nwas involved -- and to take the heat. And today I've come back\nto Cincinnati to tell you I'm ready to make good on that pledge.\nBecause up on Capitol Hill some important business has gone\nunfinished, promises have gone unfulfilled.\nWe sent responsible proposals to Congress on the Big Four --\nthe Four C's: Capital gains. America's Children. Clean Air.\n2\nAnd Combatting crime.\nIn some cases, that business has gone unattended for the\nbetter part of a year. And the Four C's have become MIA'S --\nMissing In Action in the jungles of Capitol Hill.\nThe clock is running. Time and patience are running out.\nAmerica wants it done right.\nAmerica wants it done responsibly.\nAnd America wants it done now.\nAnd if it's not done right -- it will be sent back.\nThat doesn't mean a fight. But it does mean a veto.\nAnd I'm also prepared to use the Presidential Veto to hold\nthe line against free spending.\nWe've seen a lot of exhilarating changes in recent months.\nA world no longer on the brink of war but on the brink of peace.\nBut being on the brink isn't the same as being over the top.\nSome think all the answers to this year's problems can be\nfound in the latest Washington craze -- this hypothetical\nwindfall they're calling the \"peace dividend.\" That's like the\nnext-of-kin who spend the inheritance before the will is read.\nAt best it's wishful thinking. At worst it's reckless and\nirresponsible.\nWe like what's happening in Central Europe. But just as it\nwould have been impossible -- six months ago -- to predict those\nthunderous changes, it's impossible today to know what will\nunfold in the next six months -- let alone the next six years.\nBut in this world of change, one thing is certain: America\n3\nmust be ready. America must be strong. And a strong America\nmeans not only a strong economy. It also means a strong defense.\nAnd if proof of that were ever needed -- we saw it last\nmonth in the courage of our troops in Panama.\nThe \"peace dividend,\" if there is a dividend, is not like\nmoney in the bank. It is more like an inheritance. A bonus that\nmay come. Something to be hopeful about. But a long ways from\nhaving cash in hand. And like an inheritance, it is a special\ngift, a legacy not only of prosperity but also security, earned\nby the hard work and sacrifice of those who came before.\nof course, whenever an inheritance looms there are those\neager to rush out and squander it -- to buy new things, to spend,\nspend, spend -- spending money they don't yet have. Then the\nbills start coming. And what was promised as a bonus becomes a\nburden. In Washington, that burden comes in the form of an\nannouncement. They'll say: \"It's Time to Raise Your Taxes.\" \"\nThat's not going to happen. Because most Americans know\nthat when found money does come along, the first thing to do is\npay off your debts. Reduce the deficit.\nReducing the deficit isn't just a good idea. It's what the\nAmerican people want. And it's the law.\nThe new budget must meet Gramm-Rudman requirements. It must\nreduce barriers to economic growth. It must keep interest rates\nlow. Because the best anti-poverty program is a good job. And\nthe best jobs program is a sound economy.\nA sound economy is a competitive economy. And to keep\n4\nAmerica competitive, to fuel our continuing boom, we also need an\ninfusion of new venture capital. That's why we need what a\nmajority in both Houses of Congress has already voted for: A tax\ncut on capital gains.\nAs the world turns to freer markets, this is no time to\nbecome wishy-washy about where America stands. The jury is no\nlonger out. Markets work. Government controls don't.\nAnd since the debate has all but ended on this issue,\nperhaps our most die-hard ideologues can now turn their attention\nto the real question that divides America: Is it Texas or\nCincinnati that produces the world's best chili? of course\nthis also is a question to be decided by the market.\nThe economic challenge of the 90's is to make markets work\nbetter. And one of the best ways a government can do that is to\ndo what people around the world are asking their governments to\ndo: Get out of the way!\nIt works. Here at home, we're in the midst of the longest\npeacetime economic expansion in our nation's history, an 86-month\nexpansion that has created an astonishing 20 million new jobs\nsince 1982.\nThat's due to the genius of places like Cincinnati -- the\nOhio River valley -- and the solid American values that have\nflourished here and inspired the world from Central Europe to\nCentral America.\nThe whole world is watching. And the whole world is ready.\nThe headlines tell of other nations buying American. That's\n5\ngood news -- not bad. We've been urging our own people to \"Buy\nAmerican\" for years -- to invest in the greatest job-creating\nmachine of the 20th century.\nAnd it's no surprise the world's investors are following\nsuit. The results are in: America is the choice.\nWe don't have to look elsewhere to know what works. If you\nwant to follow the smart money advice of the 1990's, go to where\nthe Japanese or the Europeans are going. Look at the U.S.A.\nLook at what the rest of the world calls \"the American miracle.\"\nYou saw it happen here in Cincinnati U.S.A., \"The Blue Chip\ncity,\" where 150,000 more people are at work than were working\nsix years àgo. Cincinnati produced its miracle the old-fashioned\nway -- the American way. It's an old tradition here. When he\nfirst opened his slaughterhouse in 1810, Richard Fosdick was\nwarned that meat couldn't be cured in Cincinnati's climate. But\nhe didn't know that it couldn't be done. He continued his\nexperiments until he discovered the rock-salt process for curing\nmeat -- and made this city the principal hog market of the world.\nRenewing our emphasis on innovation is one of the ways\nmodern Cincinnati has prospered. You've also built a diverse\neconomic base. Stripped away corporate fat. Renewed our\nemphasis on quality -- Fortune says Cincinnati makes some of the\nbest jet engines in the world.\nUltimately, these are the kind of efforts that will\ndetermine how America fares in the competitive, free-trade world\nof the 1990's. The way of the future is free people. The way of\n6\nthe future is free trade. And free people and free trade is what\nAmerica is all about.\nof course, it's not enough that trade be \"free.\"\nIt's also got to be fair.\nAnd it's not enough to tear down the Berlin Wall.\nWe've also got to tear down the tariffs and other barriers\nto American trade. III\nA global game is afoot, a game in which a Cincinnati\nbusinessman can now fly non-stop to London and Frankfurt -- any\nday of the week.\nIf the rules are fair and the same for everybody -- we can\nplay this game. It's called \"competition.\" We invented it. We\nwon it before. And we're going to win it again.\nWinning in the competitive 90's will take more than\ninvesting in products. We must also invest in people. That\nmeans offering every American child an education second to none.\nOur \"Educational Excellence Act\" remains one of the\npriorities of my Administration -- sent to Congress almost nine\nmonths ago. It calls for choice, flexibility, and\naccountability. And it's time Congress accounts for its inaction\non this pressing issue.\nYou in Cincinnati have acted, working to educate and train\nour people for the 21st century. Three years ago business,\neducational, and community leaders here came together to take on\na mighty task: reduce the numbers of students at risk -- the\nstaggering 40 percent dropout rate in public schools.\n7\nThe result was the Cincinnati Youth Collaborative -- an\nintensive people-to-people \"mentoring\" program that many of you\nsupport, and that has already seen some early success.\nIt has America talking. Your Governor visited one of the\nparticipating classrooms at McKinley before coming out to the\nEducation Summit I hosted in Virginia last fall. And earlier\ntoday I had an opportunity to see the programs at Taft High\nSchool firsthand.\nThere are other matters that require urgent attention when\nCongress gets back later this month. Our Clean Air Act proposals\nrecognize that in the emerging global economy, environmental\ndestruction knows no borders -- and that a healthy economy\nrequires a healthy environment.\nAnd a kinder, gentler environment also means a society where\nevery man, woman and child can live and prosper in an environment\nfree from fear. That means freedom from crime, and especially\nthe increasingly violent crime that's been spawned by drug abuse\nand trafficking. On our anti-crime package as well, it's time\nfor Congress to act.\nThere is much to be done in the months ahead. But as a new\nyear begins, Americans should also pause to take some pride in\nwhat we have accomplished together. Let me suggest two areas.\nAt home, more than anything else, a kinder, gentler nation\nis one in which everyone who wants a job, has a job. And today\nAmerica has the lowest unemployment rate since 1973 -- and Ohio\nhas reached its highest employment level in history.\n8\nAbroad, for more than 40 years, three generations of\nAmericans have stood steadfast in a world often filled with\nchallenge, rebuke and even insult. Firm in our belief in\nAmerica's might and in America's destiny as leader of the free\nworld, our spirit did not falter, our troops did not flinch.\nAnd today, after the watershed events of 1989, the free\nworld we're leading is growing bigger all the time.\nIn the past month we saw democracy restored to the brave\npeople of Panama. We saw the powerful brought before the bar of\njustice. And we saw a proud people weep with gratitude over the\nsacrifice of American soldiers.\nAnd somehow, it seems more than a coincidence. Because in\nthat same month, we hear that the Bald Eagle -- the American\nEagle -- may soon come off the endangered species list.\nLadies and gentlemen -- America is back. 11 And this time,\nAmerica is back to stay.\nThank you. God bless you. And God bless Cincinnati!\n#\n#\n#\n#2195\nTHE WHITE HOUSE\nOffice of the Press Secretary\n(Cincinnati, Ohio)\nFor Immediate Release\nJanuary 12, 1990\nREMARKS BY THE PRESIDENT\nTO THE CINCINNATI CHAMBER OF COMMERCE\nThe Hyatt Regency Hotel\nCincinnati, Ohio\n2:16 P.M. EST\nTHE PRESIDENT: Thank you all for that welcome back.\nAnd, Joe, thank you, sir, for those very kind words. I'm very\npleased that both Tom Luken and Bill Gradison made their flight out\nwith us on Air Force One today, and they're both with us. And if\nit's not inappropriate, I would ask Joe if I could ask them both to\nstand out and be saluted by this audience of friends. (Applause.)\nWhere did Tom go? Okay, we'll let his son represent him\n-- the Mayor of Cincinnati. (Laughter.)\nBut I'm delighted to be back in here. And it is a\nnonpartisan, nonpolitical gathering -- first one I've attended in\nHamilton County like that in a long, long time. (Laughter.)\nAnd it's good to see state Senator Stan Aronoff over\nhere. My friend, Bob Taft, the Commissioner; the Mayor, who is doing\na superb job, Charles Luken.\nDelighted to be back here in Cincinnati. I will say to\nyou, Joe, that, yes, I learned a lot from that spectacular program\nthere at Taft, and I expect we all ought to salute the leadership of\nProctor and Gamble -- my friend, John Smale, always out front on what\nI call a \" Thousand Points of Light,\" trying to help somebody else.\nBut for those of you in this community who have not had a chance to\nsee what it is I'm talking about here, this new program of\nvoluntarism interacting with the best in professionalism at a school\nto help lift these kids up, you ought to go take a look and you ought\nto get involved. It is stimulating in every single way.\nActually, I was hoping to get out here for the Reds'\nOpening Day. But they tell me I'm three months too early.\n(Laughter.) Same problem I ran into on Pearl Harbor Day. (Laughter\nand applause.) But here I am. And we're not here to talk baseball,\nbut you can claim him in Cincinnati and I'll claim him from Houston,\nbut I'm mighty proud of Joe Morgan making it into the Hall of Fame.\n(Applause.) You got Johnny Bench and now you've got Joe.\nAnd let me, Colonel, thank you and the Air Force for that\nmagnificent music and being with us here today.\nYou know, it is fitting, in the days leading up to the\nState of the Union Address, we should meet again in Cincinnati. The\nlast time I visited was in November of '88, in the final days of the\npresidential campaign. And earlier, Cincinnati was one of my last\nstops before the convention in New Orleans.\nOn the trip before that we spent a morning out at Proctor\nand Gamble's R & D facility. They taught me a trick that every\npresident should know: How to put toothpaste back into the tube.\n(Laughter.) A marvelously educational experience. (Laughter.)\nMORE\n- 2 -\nAll in all, I did come here four times during the\npresidential campaign. I talked of America's future and of future\ngenerations. I talked of certain principles. Told you that I was\nready to make the tough calls and to take the heat -- and today I've\ncome back to tell you that I'm ready to make good on that pledge.\nBecause up on Capitol Hill some important business remains\nunfinished, promises have gone unfulfilled.\nWe sent responsible proposals to Congress in a lot of\nareas, but certainly in four of America's most critical areas.\nCapital gains. America' children. Clean air. And combatting crime.\nIn some cases, our proposals have been under\nconsideration with Congress for the better part of a year. And these\nfour issues are bogged down in the jungles on Capitol Hill. The\nclock is running. And America's patience is running out. And I'm\nnot here to assign blame; I'm here to suggest that we need to move\nforward. America wants it done right. America wants it done\nresponsibly. And America wants it done now. And these four\ninitiatives represent only part of the way in which the events of\n1989 will effect the coming year.\nWe've seen a lot of exhilarating changes in recent months\nthat offer new hope for world peace. It's an exciting time we're\nliving in, and we like what's happening in Central Europe. But just\nas it would have been impossible six months ago to predict those\nthunderous changes, it's impossible today to know what will unfold in\nthe next six months, let alone the next six years.\nBut in this world of change, one thing is certain:\nAmerica must be ready And as excited as I am about the changes\nmoving toward a more peaceful Europe -- Eastern Europe -- America\nmust be strong. And a strong America means not only a strong\neconomy. It still must mean a strong defense. A ready and\nhighly-effective defense force. And if proof of that were ever\nneeded, we saw it in that superb, beautifully-coordinated operation\nlast month; we saw it in the courage of our troops in Panama.\nI welcome the dynamic changes in Eastern Europe. I\nstrongly support, as I bet we all do, Mr. Gorbachev's perestroika and\nhis commitment to peaceful change and openness -- glasnost. But this\nis not the time, this is not the time that we sould naively cut the\nmuscle out of our defense posture. And yet some thing that all the\nanswers to this year's problems can be found by spending what is\ncalled in Washington a 'peace dividend.\" It's like a next-of-kin who\nspent the inheritance before the will is read.\nAnd, unfortunately, what is being packaged as a dividend\nis not money in the bank. It is more like a possible future\ninheritance, a legacy that will enable us to pass on a better world\nto our children and, like an inheritance, it's a special gift, a\nlegacy not only of prosperity, but also security earned by the hard\nwork and sacrifice of those who came before.\nOf course, whenever a potential inheritance looms there\nare those eager to rush out and squander it -- to buy new things, to\nspend, to spend, to spend -- and spending funds they don't yet have.\nThen the bills start coming. And the inheritance may not. And what\nwas promised as a bonus becomes a burden. In Washington, that burden\ncomes in the form of a new spending program.\nThat's not going to happen. Because most Americans know\nwe not only must maintain a strong defense, but still must reduce the\ndeficit. (Applause.) And reducing the deficit isn't just a good\nidea, a sound idea, an idea of sound fiscal policy. It's what the\nAmerican people want. And, as our two Congressmen here today know,\nit's the law. It's required under the Gramm-Rudman-Hollings law.\nThe way to reduce the deficit is to restrain the spending\nMORE\n- 3 -\ngrowth and continue the economic growth. And it's not the time, as\nsome like to say, to go on out and raise the taxes on the working men\nand women in this country. The new budget must meet Gramm-Rudman\nrequirements. It must reduce barriers to economic growth. It must\nkeep interest rates low -- and I'm not satisfied yet; I'm encouraged,\nbut I'm not satisfied at all. Want to see them lower. (Applause.)\nAnd I say all this because the best poverty program -- the best\nantipoverty program, if you will, is a good job. And the best jobs\nprogram is a sound, strong central economy. (Applause.)\nA sound economy is a competitive economy. And to keep\nAmerica competitive, to fuel our continuing growth -- in some areas,\nboom -- we also need an infusion of new venture capital. That's why\nwe need a majority in both Houses of Congress -- what they've already\nvoted for, and I'm talking about a tax cut on capital gains.\n(Applause.)\nAs the world turns to freer markets - and you're seeing\nthis happen -- some solidifying their commitment to freer markets;\ncountries that never had the benefit of free markets beginning to\nmove, taking early steps towards free markets. But as the world\nmoves in this direction, this is no time to become wishy-washy about\nwhere America stands. The jury is no longer out. Markets work.\nGovernment controls do not work. (Applause.)\nAnd since the debate has all but ended on this issue,\nperhaps our most die-hard ideologues can now turn their attention to\nthe real question that divides America: Is it Texas or Cincinnati\nthat produces the world's best chili? (Laughter and applause.) Of\ncourse, this is a question to be decided by the market -- (laughter)\n-- and that's what I'm trying to tell you all here today.\nThe economic challenge of the '90s is to make markets\nwork better. And one of the best ways a government can do that is to\ndo what people around the world are asking their governments to do:\nGet out of the way. Less regulation; fewer mandated programs from\nWashington that tie the hands of our health care providers, our\neducators and so many others as well.\nYou see, our ideas work here at home We're in the midst\nof the longest peacetime expansion in the history of the United\nStates, an 86-month expansion that has created an astonishing 20\nmillion new jobs since 1982.\nThat's due to the genius of places like Cincinnati and\nthe solid American values that have flourished here and inspired the\nworld from Central Europe to Central America.\nThe whole world is watching. And the whole world is\nready. The headlines tell- of other nations buying American. That's\ngood news -- not bad news. We've been urging our own people to \"Buy\nAmerica\" for years - to invest in the greatest job-creating machine\nof the 20th century.\nAnd it's no surprise, then, the world investors are\nfollowing suit. The results are in: America is the choice.\nWe don't have to look elsewhere to know what works. If\nyou want to follow the smart money advice of the 1990s, go to where\nthe Japanese and the Europeans are going Look at the United States\nof America Look at what the rest of the world, calls \"the American\nmiracle.\"\nYou've seen it-happen. You've made it happen. You've\nbeen a part of it happening right here in Cincinnati U.S.A., \"The\nBlue Chip City,\" where 150,000 more people are at- work than were\nworking six years ago - 150,000 more. Cincinnati produced its\nmiracle. the old-fashioned way -- the American way. It's an old\ntradition here. When he first opened his slaughterhouse in 1810,\nRichard Fosdick was warned that meat couldn't be cured in\n- 4 -\nCincinnati's climate. But he didn't know that it couldn't be done.\nHe continued his experiments until he discovered the r ock-salt\nprocess for curing meat -- and made this city the principal hog\nmarket of the world.\nRenewing our emphasis on innovation is one of the ways\nmodern Cincinnati has prospered. You've also built a diverse\neconomic base. Stripped away corporate fat. Renewed our emphasis on\nquality. \"Fortune\" says Cincinnati makes some of the best jet\nengines in the entire world.\nUltimately, these are the kind of efforts that will\ndetermine how America fares in the competitive, free-trade world of\n'90s. The way of the future is free people. And the way of the\nfuture, in my view, is and must be free trade. And free people and\nfree trade is what America is all about.\nOf course, it's not enough that we say free -- that trade\nsimply be free. It has also got to be fair. And I am not\ncomplacent, I am not satisfied with where things stand. We must do\nbetter in removing barriers to Americans' goods and services, whether\nthose barriers be in Japan, in Western Europe, or anywhere else in\nthe world.\nA global game is afoot, a game in which a Cincinnati\nbusinessman can now fly non-stop to London and Frankfurt any day of\nthe week.\nIf the rules are fair and the same for everybody, we can\nplay this game. It's called free enterprise. And America is the\nfree enterprise capitol of the world.\nWinning in the competitive '90s will take more than\ninvesting in products. We must also invest in people. And that was\nwhat was SO moving about my experience today here at lunch. We must\ninvest in people. And that means offering every American child an\neducation second to none.\nOur Education Excellence Act remains a priority of my\nadministration -- sent to Congress almost nine months ago. It calls\nfor choice, flexibility, and accountability. And the time for study\nis past. And the time for action is now.\nYou in Cincinnati have acted, working to educate and\ntrain our people for the 21st century. Three years ago business,\neducational, and community leaders here came together to take on a\nmighty task: reduce the numbers of students at risk -- that\nstaggering 40 percent dropout rate in Cincinnati's public schools.\nThe result was what I saw today -- that Cincinnati Youth\nCollaborative -- an intensive people-to-people \"mentoring\" program\nthat many of you support. And it's already seen some fantastic,\nearly success.\nIt has America talking. Your Governor visited one of the\nparticipating classrooms at McKinley Preschool before coming out to\nthe Education Summit that I hosted there in Charlottesville, Virginia\nlast fall. And earlier today, as I said, I had this opportunity to\nsee the programs -- the tremendous programs -- at Taft High School\nfirsthand.\nI guess the most moving part of it for me today was the\nmentoring part. Involvement of one Cincinnatian in the life of\nanother. And older man, an older woman taking under his or her arm a\nkid -- lifting them up, helping them when they're hurt. A beautiful\nexperience.\nThere are other matters that require urgent attention\nwhen Congress gets back later this month. Our Clean Air Act\nproposals recognize that in an emerging global economy, environmental\n- 5 -\ndestruction knows no borders -- and that a health economy goes\nhand-in-hand with a healthy environment.\nAnd a kinder, gentler environment also means a society\nwhere every man, woman and child can live and pros} er in an\nenvironment free from fear. And that, then, means freedom from\ncrime. And especially the increasingly violent crime that has been\nspawned by this plague of drug abuse -- drug trafficking. Our\nanticrime package as well, it's time for the Congress to act on it.\nThere's much to be done in the months ahead. But as a\nnew year begins, Americans should also pause to take some pride in\nwhat we've all accomplished together. Let me suggest two areas.\nAt home, more than anything else -- if you had to define\nit -- a kinder and gentler nation is one in which everyone who wants\na job has a job. And today America has the lowest unemployment rate\nsince 1973 -- and Ohio has reached its highest employment level in\nhistory.\nAbroad, for more than 40 years, three generations has\nstood steadfast in an often hostile and tumultuous world. Firm in\nour belief in America's destiny as leader of the free world, our\nspirit did not falter, our troops did not flinch.\nAnd today, after the watershed events of 1989, the free\nworld that we're leading is growing bigger all the time.\nAnd in the past months we saw democracy restored to the\nbrave people of Panama. We want to help them enhance it and\nstrengthen it. We saw the powerful brought before the bar of\njustice. And we took pride in the skill and the courage and yes, the\nsacrifice of American soldiers.\nThe Panamanian operation was conducted by highly trained\ntroops. The best. The finest. The best trained troops in the\nworld. But it is not simply training, it's patriotism and it's\ndedication.\nI went to a couple of hostpitals in San Antonio --\nBarbara and I did -- to talk to some of our wounded. And I'll never\never forget their spirit. One kid lying there severely wounded said\n-- my only regret, he said, is that I'm here, not down there with the\nothers. Pride in Ameica, in my view, has never been higher.\nAnd somehow, it is more than coincidence. In the same\nmonth, we hear that the Bald Eagle -- the American Eagle -- may soon\ncome off the endangered species list. HOW about that? (Applause.)\nIn case you don't understand it, I love my job.\n(Laughter and applause.) We've got a lot to do. But as you see the\nchanges in Eastern Europe, see Mr. Gorbachev struggling against what\nsome would say, just terribly difficult odds. Things are coming our\nway. They're moving toward freedom, they're moving toward democracy.\nAnd I am proud to be at the helm.\nThank you all. God bless you. And God bless Cincinnati.\nAnd God bless the United States of America. Thank you very, very\nmuch. (Applause.)\nEND\n2:37 P.M. EST"
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