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Originally Processed With FOIA(s): FOIA Number: S S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Speech File Draft Files Subseries: Chron File, 1989-1993 OA/ID Number: 13637 Folder ID Number: 13637-004 Folder Title: Public Safety Equipment, Inc. - St. Louis 8/27/92 [OA 5811] Stack: Row: Section: Shelf: Position: G 26 18 4 3 PUBLIC SAFETY EQUIPMENT, INC. ST. LOUIS, MISSOURI AUGUST 27, 1992, 8:45 A.M. THANK YOU AND GOOD MORNING. THANK YOU FOR THAT KIND INTRODUCTION STEVEN (ROSE). AND LET ME THANK SOME OTHER MEMBERS OF THE HOST COMMITTEE: MICHEAL LATTA, EDWARD RYAN, AND ANDREW SMITH. I'M VERY PLEASED THAT THE GOVERNOR OF MISSOURI COULD JOIN US THIS MORNING -- THANK YOU, JOHN (ASHCROFT). ((THIS IS GREAT. LOOK AT THE EQUIPMENT YOU HAVE HERE -- LIGHT BARS, BEACONS -- YOU'VE GIVEN NEW MEANING TO A THOUSAND POINTS OF LIGHT.)) OVER THE PAST THREE AND A HALF YEARS WE HAVE SEEN A WORLD TRANSFORMED. THE COLD WAR IS OVER. AND NOW THE DEFINING CHALLENGE OF THE '90'S IS TO WIN THE COMPETITION OF THE NEW GLOBAL ECONOMY -- TO WIN THE PEACE. - 2 - OUR GOAL IS SIMPLE AND PROFOUND: WE MUST BE A MILITARY SUPERPOWER, AN ECONOMIC SUPERPOWER AND AN EXPORT SUPERPOWER. IN THIS ELECTION, YOU'LL HEAR TWO VERSIONS OF HOW TO DO THIS. MY OPPONENTS' ANSWER IS TO LOOK INWARD, AND PROTECT WHAT WE ALREADY HAVE FROM THE CHALLENGES OF THIS NEW WORLD. MY APPROACH IS TO LOOK FORWARD -- TO OPEN NEW MARKETS, PREPARE OUR PEOPLE TO COMPETE, TO RESTORE OUR SOCIAL FABRIC -- TO SAVE AND INVEST, SO THAT WE CAN WIN. I'VE COME TO ST. LOUIS TODAY NOT LEAD A RALLY BUT TO DELIVER A SERIOUS MESSAGE: I WANT TO POINT OUT THE SHARP DIFFERENCE BETWEEN GOVERNOR CLINTON AND ME ON THE CRUCIAL ISSUES OF INVESTMENT AND OPEN TRADE. MY POLICIES ENCOURAGE BOTH -- BECAUSE MY EXPERIENCE IN BUSINESS AND FOREIGN AFFAIRS HAS SHOWN ME THAT TRADE AND INVESTMENT CREATE JOBS. - 3 - IN CONTRAST, MY OPPONENT AND THE DEMOCRATIC CONGRESS WANT TO TAX BOTH TRADE AND INVESTMENT. BUT COMMON SENSE TELLS US THAT IF YOU TAX SOMETHING, YOU GET LESS OF IT. TAXES STIFLE GROWTH -- CHASE AWAY BUSINESS AND DESTROY JOBS. I KNOW MY OPPONENT HAS LOTS OF SLOGANS AND POLICY BUZZWORDS THAT SOUND APPEALING WHEN YOU FIRST HEAR THEM -- BUT AMERICA CAN'T AFFORD THEM. THERE'S A DIFFERENCE BETWEEN SOUND BITES AND SOUND POLICY. TALK IS CHEAP - -- UNTIL YOU GET THE BILL. P.S.E. IS AN EXAMPLE OF WHERE I THINK AMERICA SHOULD GO -- AND HOW WE SHOULD GET THERE. NOT SO LONG AGO COMPANIES LIKE P.S.E. COULD BE SATISFIED WITH A NATIONAL MARKET - -- SELL YOUR GOODS IN THE FIFTY STATES AND LEAVE IT AT THAT. - 4 - THAT'S NO LONGER GOOD ENOUGH. SO A FEW YEARS AGO, YOU DECIDED TO TAKE ON THE WORLD. I'M TOLD THAT NOW 35 PERCENT OF WHAT YOU MAKE IS SOLD OUTSIDE OUR BORDERS, IN 66 DIFFERENT COUNTRIES. TODAY YOUR LIGHT BARS AND SIRENS HELP SAVE LIVES NOT ONLY ON THE STREETS OF DETROIT AND PEORIA, BUT IN ISRAEL, HONG KONG AND SPAIN. ( (AS LONG AS YOU'RE SHIPPING SO MUCH STUFF ABROAD - - YOU MIGHT AS WELL CHANGE YOUR NAME TO U - - P - - S - E.)) YOUR STORY IS A PARABLE FOR OUR NATION'S ECONOMIC FUTURE. YOU'VE TAKEN THE CHALLENGES OF FOREIGN COMPETITION AND RESHAPED THEM AS OPPORTUNITIES -- MADE YOUR NAME A STANDARD OF EXCELLENCE - -- AND YOU SHOULD BE PROUD OF IT. - 5 - LET ME TELL YOU HOW I FIRST LEARNED ABOUT COMPETING IN THE WORLD. I LEARNED MY ECONOMICS ON THE OILFIELDS OF WEST TEXAS. I PAINTED RIGS FOR A WHILE, THEN DROVE THOUSANDS OF MILES THROUGH FIELDS IN TEXAS, NEW MEXICO, AND CALIFORNIA. AND ALL AROUND ME IN THOSE DAYS I SAW TOWNS AND BUSINESSES RISE UP FROM NOTHING, FOR A SIMPLE REASON: THE WORLD WANTED WHAT TEXAS HAD TO OFFER -- COTTON AND CATTLE AND CRUDE. LATER ON, WHEN I STARTED MY OWN BUSINESS, I SHOPPED FOR INVESTORS ON THE WEST COAST, ON THE EAST COAST, BUT I COULDN'T STOP THERE. I TRAVELED THE WORLD -- TO EUROPE AND THE FAR EAST. EVERY DOLLAR WE COULD BRING INTO THIS COUNTRY WAS A DOLLAR THAT WENT TO EXPAND OUR COMPANY, CREATE JOBS IN OUR COMMUNITY. - 6 - I BUILT ON THAT BUSINESS EXPERIENCE WHEN I GOT INVOLVED IN FOREIGN RELATIONS. I SAW AGAIN HOW IMPORTANT AMERICA IS TO THE WORLD, AND HOW IMPORTANT THE WORLD IS TO AMERICA -- NOT JUST FOR NATIONAL SECURITY IN THE TRADITIONAL SENSE, BUT FOR OUR ECONOMIC SECURITY, FOR CREATING JOBS, RIGHT HERE AT HOME. WE'VE HELD STEADY TO THIS VISION FOR THREE YEARS NOW, AND WE'VE MADE SOLID PROGRESS. AS WE KNOCK DOWN TRADE BARRIERS, AMERICAN COMPANIES ARE RUSHING TO MEET THE DEMAND. ALL AROUND THE WORLD -- MORE AND MORE PEOPLE ARE BUYING AMERICAN. SINCE I TOOK OFFICE, EXPORTS HAVE INCREASED BY ONE- THIRD. AMERICA IS THE GREATEST EXPORTER THE WORLD HAS EVER SEEN -- $422 BILLION DOLLARS OF EXPORTS LAST YEAR ALONE. - 7 - LET ME BRING IT CLOSE TO HOME. IN MISSOURI, EXPORTS ARE UP 37 PERCENT OVER THE LAST THREE YEARS -- $3.8 BILLION WORTH OF GOODS SHIPPED TO 151 COUNTRIES AROUND THE WORLD. IT LOOKS LIKE THE "SHOW ME" STATE IS SHOWING THE WORLD. THE NUMBERS ARE IMPRESSIVE, BUT WHEN YOU DIG BEHIND THE MATH, YOU FIND THE REAL BENEFIT OF THE NEW WORLD ECONOMY -- IN A WORD: IT'S JOBS. HERE IN MISSOURI, 150,000 JOBS ARE SUPPORTED BY FOREIGN TRADE. ACROSS THE COUNTRY, MORE THAN 7 MILLION AMERICANS OWE THEIR JOBS TO EXPORTS. - 8 - EVERYONE RECOGNIZES THAT THE WORLD IS MOVING AT A FASTER CLIP, BUT I SEE SOMETHING MORE: IT'S MOVING OUR WAY. RIGHT NOW WE'RE BUILDING ON THE EXPORT SUCCESS OF THE LAST THREE YEARS. TWO WEEKS AGO WE ENTERED A NEW ERA OF OPEN TRADE. ALONG WITH MEXICO AND CANADA, WE CONCLUDED TALKS ON THE NORTH AMERICAN FREE TRADE AGREEMENT -- NAFTA -- KNOCKING DOWN TARIFFS AND CREATING ONE OF THE LARGEST FREE-TRADE AREAS IN THE WORLD -- AN INTEGRATED ECONOMY WORTH MORE THAN $6 TRILLION DOLLARS. HERE IN MISSOURI, YOU ALREADY EXPORT $2 BILLION WORTH OF GOODS TO MEXICO AND CANADA. THAT'S A LOT OF PAYCHECKS, BUT OUR NEW AGREEMENT WILL CREATE EVEN MORE JOBS, AND MAKE US EVEN STRONGER IN THE RACE WITH OUR EUROPEAN AND ASIAN COMPETITORS. NAFTA IS A SOLID AGREEMENT. BUT RIGHT NOW, BEFORE THE INK IS EVEN DRY, THE DEMOCRATIC LEADERSHIP IN CONGRESS IS CALLING FOR US TO SLAP A TARIFF ON ANY NEW TRADE THAT COMES FROM NAFTA. - 9 - THINK ABOUT THAT FOR A MINUTE. AFTER LONG AND TOUGH NEGOTIATIONS WITH OUR TWO CLOSEST TRADING PARTNERS, WE'VE AGREED TO END TARIFFS. THE PROTECTIONIST DEMOCRATS SAY: "OKAY, FINE. BUT FIRST YOU HAVE TO PUT ON A NEW TARIFF." IN OTHER WORDS, THEY THINK THE WAY TO ELIMINATE TRADE BARRIERS IS BUILD A NEW TRADE BARRIER. THIS NEW TARIFF -- THIS "TRANSACTION TAX," AS THEY CALL IT -- WILL MAKE IT MORE EXPENSIVE FOR OUR BUSINESSES TO COMPETE IN THE WORLD ECONOMY -- AND IT WILL DISCOURAGE THE CREATION OF NEW JOBS FOR YOU AND YOUR NEIGHBORS. IT TURNS THE AGREEMENT ON ITS HEAD. THEY MAY THINK THAT'S GOOD POLITICS, BUT IT'S LOUSY POLICY. WHAT ABOUT GOVERNOR CLINTON? WHERE DOES HE STAND? WELL, JUST LAST WEEK, HE WAS ASKED ABOUT OUR NEW TRADE AGREEMENT. HE HEMMED AND HAWED, AND AT LAST HE SAID: "WHEN I HAVE A DEFINITIVE OPINION, I'LL SAY SO." - 10 - ((I HOPE NOBODY'S PLANNING ON HOLDING THEIR BREATH. )) GOVERNOR CLINTON CAN FUDGE ALL HE WANTS, BUT THE DIFFERENCE COULDN'T BE CLEARER -- AND THE DIFFERENCE IS BASED ON TWO VERY DIFFERENT VIEWS OF AMERICA'S FUTURE. MY OPPONENTS SEE US KNOCK DOWN TRADE BARRIERS AND THEY SAY: HOLD EVERYTHING. THEY SEE US OPEN NEW MARKETS FOR AMERICAN GOODS AND THEY SAY: WAIT A MINUTE. MAYBE WE CAN'T COMPETE. MAYBE THE AMERICAN WORKER CAN'T CUT IT. SO LET'S PULL DOWN THE BLINDS, LOCK THE DOORS AND HOPE THE WORLD GOES AWAY. WELL, LET ME TELL THEM SOMETHING YOU ALREADY KNOW. THE AMERICAN WORKER DOESN'T HAVE TO HIDE FROM ANYBODY. AMERICANS CAN OUTWORK, OUT-THINK, OUT-COMPETE ANYBODY, ANYWHERE, ANYTIME. - 11 - THAT'S SOMETHING EVERYONE IN THE WORLD SEEMS TO UNDERSTAND -- EVERYONE BUT THE PROTECTIONIST DEMOCRATS. OVER THE LAST DECADE, WE'VE SEEN A BOOM IN FOREIGN INVESTMENT IN THE UNITED STATES -- BUSINESSES FROM ALL OVER THE WORLD SETTING UP SHOP FROM PORTLAND, OREGON TO PORTLAND, MAINE. THESE INVESTORS FOLLOW A SIMPLE LOGIC: IF YOU WANT THE BEST SCIENCE AND UNIVERSITIES IN THE WORLD, IF YOU WANT THE BEST WORKERS IN THE WORLD, YOU HAVE TO COME TO THE U.S.A. /// THE RESULT HAS BEEN JOBS: ONE OUT OF EVERY TEN MANUFACTURING WORKERS IN THE UNITED STATES WORKS FOR A COMPANY SUPPORTED BY FOREIGN INVESTMENT. AND THAT'S THE BOTTOM LINE: JOBS FOR AMERICANS, A GROWING ECONOMIC PIE FOR EVERYONE. NOW, HERE'S ONE ISSUE GOVERNOR CLINTON DOESN'T FUDGE. HE'S PROPOSED TO INCREASE TAXES ON FOREIGN INVESTMENT IN THE UNITED STATES, EVEN THOUGH THOSE COMPANIES EMPLOY A TOTAL OF 4 AND ONE-HALF MILLION AMERICANS. - 12 - GOVERNOR CLINTON SAYS HIS TAX INCREASE WILL "CRACK DOWN" ON FOREIGN COMPANIES, BUT HIS CRACK-DOWN IS MORE LIKE AN EVICTION NOTICE. AND WHEN THOSE COMPANIES PACK THEIR BAGS, THEY'LL TAKE THOSE JOBS WITH THEM. // I'M NOT GOING TO LET THAT HAPPEN. /// TRAVEL AROUND THIS STATE. GO TO NEW MADRID (MAD- RID), TALK TO THE 1200 EMPLOYEES AT NORANDA ALUMINUM - - OR TO JOPLIN, TALK TO THE 425 EMPLOYEES OF ATLAS POWDER. GO TO ANY OF THE 244 FOREIGN-OWNED COMPANIES THAT EMPLOY 60,000 WORKERS RIGHT HERE IN MISSOURI. I DON'T THINK YOU'RE GOING TO FIND ANY OF THOSE MISSOURIANS WHINING ABOUT FOREIGN INVESTMENT. IF GOVERNOR CLINTON'S TAX HIKE HAD BEEN IN EFFECT THESE PAST FEW YEARS, THOSE COMPANIES WOULDN'T BE HERE -- AND THOSE JOBS WOULDN'T HAVE BEEN CREATED FOR MISSOURIANS. - 13 - AND IT'S NOT JUST MISSOURI. WHETHER IT'S THE NISSAN PLANT IN SMYRNA, TENNESSEE -- OR THE HONDA PLANT IN MARYSVILLE, OHIO -- GOVERNOR CLINTON'S TAX INCREASE WOULD BE FELT IN EVERY REGION OF EVERY STATE IN THIS COUNTRY. GOVERNOR CLINTON COULD USE A LESSON IN INTERNATIONAL RELATIONS. IF HE RAISES THIS TAX, OUR FOREIGN COMPETITORS ARE GOING TO SAY: "WHAT'S GOOD FOR THE GOOSE IS GOOD FOR THE GANDER." HIS TAX IS LIKE A GILDED INVITATION SENT TO FOREIGN GOVERNMENTS WHERE U.S. COMPANIES DO BUSINESS. AND THE INVITATION READS: "PLEASE RETALIATE." HIS TAX WOULD NOT ONLY DESTROY JOBS AND REDUCE INVESTMENT HERE; IT WOULD DO THE SAME THROUGHOUT THE GLOBAL ECONOMY -- CAUSING A WORLDWIDE CONTRACTION. THERE WAS ANOTHER OCCASION WHEN THAT HAPPENED -- RIGHT BEFORE THE GREAT DEPRESSION. - 14 - SO THOSE ARE THE FACTS ABOUT GOVERNOR CLINTON'S TAX: IT WILL DESTROY JOBS. IT WILL DISCOURAGE INVESTMENT. AND IT THREATENS TO START AN ECONOMIC WAR JUST AS MARKETS THE WORLD OVER ARE OPENING UP TO AMERICAN PRODUCTS. WE SHOULD ASK WHY, GIVEN ALL THIS, GOVERNOR CLINTON WOULD EVER PROPOSE SUCH A TAX IN THE FIRST PLACE. I HAVE A HUNCH. TODAY CHANGE IS ACCELERATING, AND CHANGE BREEDS UNEASINESS, SKEPTICISM, EVEN FEAR. AND BY ATTACKING THE BOGEYMEN OF FOREIGN INVESTORS, GOVERNOR CLINTON HOPES TO EXPLOIT THE DARKER IMPULSES OF THIS UNCERTAIN AGE -- FEAR OF THE FUTURE, FEAR OF THE UNKNOWN, FEAR OF FOREIGNERS. - 15 - NOW I KNOW GOVERNOR CLINTON'S REPUTATION FOR OPPORTUNISM -- AS THE KIND OF GUY WHO'LL SAY ANYTHING, DO ANYTHING, FOR POLITICAL GAIN. BUT HE SHOULD UNDERSTAND WHAT'S AT STAKE HERE, AND IF HE DOESN'T KNOW, LET ME TELL HIM: THOSE ARE AMERICAN JOBS HE'S PLAYING POLITICS WITH. THOSE ARE AMERICAN WORKERS HE'S PUTTING AT RISK. THE AMERICAN PEOPLE WON'T BUY IT. THE PROUDEST PEOPLE ON EARTH HAVE NEVER STOOPED TO FEARMONGERS BEFORE, AND WE'RE NOT GOING TO START NOW. IN TALKING ABOUT AMERICA'S FUTURE IN THE GLOBAL ECONOMY, I MENTIONED MY OWN EXPERIENCE, BECAUSE I WANT YOU TO UNDERSTAND WHY I BELIEVE WHAT I DO ABOUT AMERICA'S ABILITY TO COMPETE. I'VE BUILT A BUSINESS; I'VE DEALT WITH FOREIGN NATIONS; AND I KNOW HOW TO BRING IT TOGETHER -- I KNOW WHAT IT TAKES TO MAKE AMERICA SECURE AND STRONG AT HOME AND ABROAD. - 16 - SO YOU SEE, YOUR VOTE WILL MAKE A DIFFERENCE THIS YEAR -- AND NOT ONLY IN THE PRESIDENTIAL ELECTION. WHEN YOU LOOK AT YOUR CANDIDATES FOR CONGRESS, I'D LIKE YOU TO ASK THEM SOMETHING. ASK THEM WHERE THEY STAND ON KEEPING AMERICA AN EXPORT SUPERPOWER -- ON OUR NEW TRADE AGREEMENT -- AND ON GOVERNOR CLINTON'S NEW TAXES ON INVESTMENT AND JOBS. - 17 - PLEASE LISTEN TO THEIR ANSWERS CAREFULLY. AND THIS IS IMPORTANT -- PLEASE FOLLOW UP. SOME OF THEM WILL DO MORE FLIP-FLOPS THAN OZZIE SMITH. I'LL GIVE YOU AN EXAMPLE. EARLIER THIS SUMMER, WE LOST A CLOSE BATTLE IN CONGRESS FOR A CONSTITUTIONAL AMENDMENT TO BALANCE THE FEDERAL BUDGET. ONE OF ST. LOUIS'S REPRESENTATIVES -- JOAN HORN -- SIGNED UP AS A CO-SPONSOR OF THE AMENDMENT IN APRIL. THEN, WHEN IT CAME TIME TO VOTE, SHE DID AN OZZIE SMITH. SHE VOTED AGAINST THE AMENDMENT SHE HAD CO-SPONSORED. SO THIS FALL, WHEN YOU ASK REPRESENTATIVE HORN ABOUT THE ISSUES, ASK HER ABOUT THE BALANCED BUDGET AMENDMENT. LET HER KNOW BEFORE SHE LISTENS TO THE DEMOCRATIC LEADERSHIP IN CONGRESS, SHE SHOULD LISTEN TO HER HEART. SHE SHOULD LISTEN TO MISSOURI. - 18 - THOSE ARE THE KIND OF CHOICES WE FACE THIS YEAR -- A CHOICE BETWEEN THE PATRONS OF THE PAST AND THE ARCHITECTS OF THE FUTURE. I BELIEVE WE CAN SHAPE OUR FUTURE -- NOT BY TAXING TRADE BUT BY OPENING MARKETS; NOT BY SCARING OFF INVESTMENT BUT BY USING IT TO CREATE JOBS FOR OURSELVES AND OUR KIDS. I HAVE FAITH IN AMERICA'S FUTURE -- BECAUSE I HAVE FAITH IN THE AMERICAN PEOPLE. IT'S THE SAME FAITH THAT BROUGHT ME OUT TO TEXAS MORE THAN 40 YEARS AGO -- THE SAME FAITH THAT BROUGHT ME INTO PUBLIC LIFE -- THE SAME FAITH THAT HAS LED ME TO FIGHT FOR OPEN MARKETS -- BECAUSE I KNOW THAT NO CHALLENGE IS TOO GREAT FOR THE HEARTS AND HANDS AND MINDS OF AMERICA. THANK YOU AND GOD BLESS YOU. # # # PUBLIC SAFETY EQUIPMENT, INC. ST. LOUIS, MISSOURI AUGUST 27, 1992, 8:45 A.M. THANK YOU AND GOOD MORNING. THANK YOU FOR THAT KIND INTRODUCTION STEVEN (ROSE). AND LET ME THANK SOME OTHER MEMBERS OF THE HOST COMMITTEE: MICHEAL LATTA, EDWARD RYAN, AND ANDREW SMITH. I'M VERY PLEASED THAT THE GOVERNOR OF MISSOURI COULD JOIN US THIS MORNING -- THANK YOU, JOHN (ASHCROFT). ((THIS IS GREAT. LOOK AT THE EQUIPMENT YOU HAVE HERE -- LIGHT BARS, BEACONS -- YOU'VE GIVEN NEW MEANING TO A THOUSAND POINTS OF LIGHT.)) OVER THE PAST THREE AND A HALF YEARS WE HAVE SEEN A WORLD TRANSFORMED. THE COLD WAR IS OVER. AND NOW THE DEFINING CHALLENGE OF THE '90'S IS TO WIN THE COMPETITION OF THE NEW GLOBAL ECONOMY -- TO WIN THE PEACE. - 2 - OUR GOAL IS SIMPLE AND PROFOUND: WE MUST BE A MILITARY SUPERPOWER, AN ECONOMIC SUPERPOWER AND AN EXPORT SUPERPOWER. IN THIS ELECTION, YOU'LL HEAR TWO VERSIONS OF HOW TO DO THIS. MY OPPONENTS' ANSWER IS TO LOOK INWARD, AND PROTECT WHAT WE ALREADY HAVE FROM THE CHALLENGES OF THIS NEW WORLD. MY APPROACH IS TO LOOK FORWARD -- TO OPEN NEW MARKETS, PREPARE OUR PEOPLE TO COMPETE, TO RESTORE OUR SOCIAL FABRIC -- TO SAVE AND INVEST, SO THAT WE CAN WIN. I'VE COME TO ST. LOUIS TODAY NOT LEAD A RALLY BUT TO DELIVER A SERIOUS MESSAGE: I WANT TO POINT OUT THE SHARP DIFFERENCE BETWEEN GOVERNOR CLINTON AND ME ON THE CRUCIAL ISSUES OF INVESTMENT AND OPEN TRADE. MY POLICIES ENCOURAGE BOTH -- BECAUSE MY EXPERIENCE IN BUSINESS AND FOREIGN AFFAIRS HAS SHOWN ME THAT TRADE AND INVESTMENT CREATE JOBS. - 3 - IN CONTRAST, MY OPPONENT AND THE DEMOCRATIC CONGRESS WANT TO TAX BOTH TRADE AND INVESTMENT. BUT COMMON SENSE TELLS US THAT IF YOU TAX SOMETHING, YOU GET LESS OF IT. TAXES STIFLE GROWTH -- CHASE AWAY BUSINESS AND DESTROY JOBS. I KNOW MY OPPONENT HAS LOTS OF SLOGANS AND POLICY BUZZWORDS THAT SOUND APPEALING WHEN YOU FIRST HEAR THEM -- BUT AMERICA CAN'T AFFORD THEM. THERE'S A DIFFERENCE BETWEEN SOUND BITES AND SOUND POLICY. TALK IS CHEAP -- UNTIL YOU GET THE BILL. P.S.E. IS AN EXAMPLE OF WHERE I THINK AMERICA SHOULD GO -- AND HOW WE SHOULD GET THERE. NOT SO LONG AGO COMPANIES LIKE P.S.E. COULD BE SATISFIED WITH A NATIONAL MARKET -- SELL YOUR GOODS IN THE FIFTY STATES AND LEAVE IT AT THAT. - 4 - THAT'S NO LONGER GOOD ENOUGH. SO A FEW YEARS AGO, YOU DECIDED TO TAKE ON THE WORLD. I'M TOLD THAT NOW 35 PERCENT OF WHAT YOU MAKE IS SOLD OUTSIDE OUR BORDERS, IN 4860 66 DIFFERENT COUNTRIES. TODAY YOUR LIGHT BARS AND SIRENS HELP SAVE LIVES NOT ONLY ON THE STREETS OF DETROIT AND PEORIA, BUT IN ISRAEL, HONG KONG AND SPAIN. ( (AS LONG AS YOU'RE SHIPPING SO MUCH STUFF ABROAD - - - YOU MIGHT AS WELL CHANGE YOUR NAME TO U - - P - - S - E.)) YOUR STORY IS A PARABLE FOR OUR NATION'S ECONOMIC FUTURE. YOU'VE TAKEN THE CHALLENGES OF FOREIGN COMPETITION AND RESHAPED THEM AS OPPORTUNITIES -- MADE YOUR NAME A STANDARD OF EXCELLENCE - -- AND YOU SHOULD BE PROUD OF IT. - 5 - LET ME TELL YOU HOW I FIRST LEARNED ABOUT COMPETING IN THE WORLD. I LEARNED MY ECONOMICS ON THE OILFIELDS OF WEST TEXAS. I PAINTED RIGS FOR A WHILE, THEN DROVE THOUSANDS OF MILES THROUGH FIELDS IN TEXAS, NEW MEXICO, AND CALIFORNIA. AND ALL AROUND ME IN THOSE DAYS I SAW TOWNS AND BUSINESSES RISE UP FROM NOTHING, FOR A SIMPLE REASON: THE WORLD WANTED WHAT TEXAS HAD TO OFFER -- COTTON AND CATTLE AND CRUDE. LATER ON, WHEN I STARTED MY OWN BUSINESS, I SHOPPED FOR INVESTORS ON THE WEST COAST, ON THE EAST COAST, BUT I COULDN'T STOP THERE. I TRAVELED THE WORLD - -- TO EUROPE AND THE FAR EAST. EVERY DOLLAR WE COULD BRING INTO THIS COUNTRY WAS A DOLLAR THAT WENT TO EXPAND OUR COMPANY, CREATE JOBS IN OUR COMMUNITY. - 6 - I BUILT ON THAT BUSINESS EXPERIENCE WHEN I GOT INVOLVED IN FOREIGN RELATIONS. I SAW AGAIN HOW IMPORTANT AMERICA IS TO THE WORLD, AND HOW IMPORTANT THE WORLD IS TO AMERICA -- NOT JUST FOR NATIONAL SECURITY IN THE TRADITIONAL SENSE, BUT FOR OUR ECONOMIC SECURITY, FOR CREATING JOBS, RIGHT HERE AT HOME. WE'VE HELD STEADY TO THIS VISION FOR THREE YEARS NOW, AND WE'VE MADE SOLID PROGRESS. AS WE KNOCK DOWN TRADE BARRIERS, AMERICAN COMPANIES ARE RUSHING TO MEET THE DEMAND. ALL AROUND THE WORLD -- MORE AND MORE PEOPLE ARE BUYING AMERICAN. SINCE I TOOK OFFICE, EXPORTS HAVE INCREASED BY ONE- THIRD. AMERICA IS THE GREATEST EXPORTER THE WORLD HAS EVER SEEN -- $422 BILLION DOLLARS OF EXPORTS LAST YEAR ALONE. - 7 - LET ME BRING IT CLOSE TO HOME. IN MISSOURI, EXPORTS ARE UP 37 PERCENT OVER THE LAST THREE YEARS -- $3.8 BILLION WORTH OF GOODS SHIPPED TO 151 COUNTRIES AROUND THE WORLD. IT LOOKS LIKE THE "SHOW ME" STATE IS SHOWING THE WORLD. THE NUMBERS ARE IMPRESSIVE, BUT WHEN YOU DIG BEHIND THE MATH, YOU FIND THE REAL BENEFIT OF THE NEW WORLD ECONOMY - -- IN A WORD: IT'S JOBS. HERE IN MISSOURI, 150,000 JOBS ARE SUPPORTED BY FOREIGN TRADE. ACROSS THE COUNTRY, MORE THAN 7 MILLION AMERICANS OWE THEIR JOBS TO EXPORTS. - 8 - EVERYONE RECOGNIZES THAT THE WORLD IS MOVING AT A FASTER CLIP, BUT I SEE SOMETHING MORE: IT'S MOVING OUR WAY. RIGHT NOW WE'RE BUILDING ON THE EXPORT SUCCESS OF THE LAST THREE YEARS. TWO WEEKS AGO WE ENTERED A NEW ERA OF OPEN TRADE. ALONG WITH MEXICO AND CANADA, WE CONCLUDED TALKS ON THE NORTH AMERICAN FREE TRADE AGREEMENT -- NAFTA -- KNOCKING DOWN TARIFFS AND CREATING ONE OF THE LARGEST FREE-TRADE AREAS IN THE WORLD -- AN INTEGRATED ECONOMY WORTH MORE THAN $6 TRILLION DOLLARS. HERE IN MISSOURI, YOU ALREADY EXPORT $2 BILLION WORTH OF GOODS TO MEXICO AND CANADA. THAT'S A LOT OF PAYCHECKS, BUT OUR NEW AGREEMENT WILL CREATE EVEN MORE JOBS, AND MAKE US EVEN STRONGER IN THE RACE WITH OUR EUROPEAN AND ASIAN COMPETITORS. NAFTA IS A SOLID AGREEMENT. BUT RIGHT NOW, BEFORE THE INK IS EVEN DRY, THE DEMOCRATIC LEADERSHIP IN CONGRESS IS CALLING FOR US TO SLAP A TARIFF ON ANY NEW TRADE THAT COMES FROM NAFTA. - 9 - THINK ABOUT THAT FOR A MINUTE. AFTER LONG AND TOUGH NEGOTIATIONS WITH OUR TWO CLOSEST TRADING PARTNERS, WE'VE AGREED TO END TARIFFS. THE PROTECTIONIST DEMOCRATS SAY: "OKAY, FINE. BUT FIRST YOU HAVE TO PUT ON A NEW TARIFF." IN OTHER WORDS, THEY THINK THE WAY TO ELIMINATE TRADE BARRIERS IS BUILD A NEW TRADE BARRIER. THIS NEW TARIFF -- THIS "TRANSACTION TAX," AS THEY CALL IT -- WILL MAKE IT MORE EXPENSIVE FOR OUR BUSINESSES TO COMPETE IN THE WORLD ECONOMY - -- AND IT WILL DISCOURAGE THE CREATION OF NEW JOBS FOR YOU AND YOUR NEIGHBORS. IT TURNS THE AGREEMENT ON ITS HEAD. THEY MAY THINK THAT'S GOOD POLITICS, BUT IT'S LOUSY POLICY. WHAT ABOUT GOVERNOR CLINTON? WHERE DOES HE STAND? WELL, JUST LAST WEEK, HE WAS ASKED ABOUT OUR NEW TRADE AGREEMENT. HE HEMMED AND HAWED, AND AT LAST HE SAID: "WHEN I HAVE A DEFINITIVE OPINION, I'LL SAY SO." - 10 - ((I HOPE NOBODY'S PLANNING ON HOLDING THEIR BREATH. )) GOVERNOR CLINTON CAN FUDGE ALL HE WANTS, BUT THE DIFFERENCE COULDN'T BE CLEARER -- AND THE DIFFERENCE IS BASED ON TWO VERY DIFFERENT VIEWS OF AMERICA'S FUTURE. MY OPPONENTS SEE US KNOCK DOWN TRADE BARRIERS AND THEY SAY: HOLD EVERYTHING. THEY SEE US OPEN NEW MARKETS FOR AMERICAN GOODS AND THEY SAY: WAIT A MINUTE. MAYBE WE CAN'T COMPETE. MAYBE THE AMERICAN WORKER CAN'T CUT IT. SO LET'S PULL DOWN THE BLINDS, LOCK THE DOORS AND HOPE THE WORLD GOES AWAY. WELL, LET ME TELL THEM SOMETHING YOU ALREADY KNOW. THE AMERICAN WORKER DOESN'T HAVE TO HIDE FROM ANYBODY. AMERICANS CAN OUTWORK, OUT-THINK, OUT-COMPETE ANYBODY, ANYWHERE, ANYTIME. - 11 - THAT'S SOMETHING EVERYONE IN THE WORLD SEEMS TO UNDERSTAND -- EVERYONE BUT THE PROTECTIONIST DEMOCRATS. OVER THE LAST DECADE, WE'VE SEEN A BOOM IN FOREIGN INVESTMENT IN THE UNITED STATES -- BUSINESSES FROM ALL OVER THE WORLD SETTING UP SHOP FROM PORTLAND, OREGON TO PORTLAND, MAINE. THESE INVESTORS FOLLOW A SIMPLE LOGIC: IF YOU WANT THE BEST SCIENCE AND UNIVERSITIES IN THE WORLD, IF YOU WANT THE BEST WORKERS IN THE WORLD, YOU HAVE TO COME TO THE U.S.A. /// THE RESULT HAS BEEN JOBS: ONE OUT OF EVERY TEN MANUFACTURING WORKERS IN THE UNITED STATES WORKS FOR A COMPANY SUPPORTED BY FOREIGN INVESTMENT. AND THAT'S THE BOTTOM LINE: JOBS FOR AMERICANS, A GROWING ECONOMIC PIE FOR EVERYONE. NOW, HERE'S ONE ISSUE GOVERNOR CLINTON DOESN'T FUDGE. HE'S PROPOSED TO INCREASE TAXES ON FOREIGN INVESTMENT IN THE UNITED STATES, EVEN THOUGH THOSE COMPANIES EMPLOY A TOTAL OF 4 AND ONE-HALF MILLION AMERICANS. - 12 - GOVERNOR CLINTON SAYS HIS TAX INCREASE WILL "CRACK DOWN" ON FOREIGN COMPANIES, BUT HIS CRACK-DOWN IS MORE LIKE AN EVICTION NOTICE. AND WHEN THOSE COMPANIES PACK THEIR BAGS, THEY'LL TAKE THOSE JOBS WITH THEM. // I'M NOT GOING TO LET THAT HAPPEN. /// TRAVEL AROUND THIS STATE. GO TO NEW MADRID (MAD- RID), TALK TO THE 1200 EMPLOYEES AT NORANDA ALUMINUM - - OR TO JOPLIN, TALK TO THE 425 EMPLOYEES OF ATLAS POWDER. GO TO ANY OF THE 244 FOREIGN-OWNED COMPANIES THAT EMPLOY 60,000 WORKERS RIGHT HERE IN MISSOURI. I DON'T THINK YOU'RE GOING TO FIND ANY OF THOSE MISSOURIANS WHINING ABOUT FOREIGN INVESTMENT. IF GOVERNOR CLINTON'S TAX HIKE HAD BEEN IN EFFECT THESE PAST FEW YEARS, THOSE COMPANIES WOULDN'T BE HERE -- AND THOSE JOBS WOULDN'T HAVE BEEN CREATED FOR MISSOURIANS. - 13 - AND IT'S NOT JUST MISSOURI. WHETHER IT'S THE NISSAN PLANT IN SMYRNA, TENNESSEE -- OR THE HONDA PLANT IN MARYSVILLE, OHIO -- GOVERNOR CLINTON'S TAX INCREASE WOULD BE FELT IN EVERY REGION OF EVERY STATE IN THIS COUNTRY. GOVERNOR CLINTON COULD USE A LESSON IN INTERNATIONAL RELATIONS. IF HE RAISES THIS TAX, OUR FOREIGN COMPETITORS ARE GOING TO SAY: "WHAT'S GOOD FOR THE GOOSE IS GOOD FOR THE GANDER." HIS TAX IS LIKE A GILDED INVITATION SENT TO FOREIGN GOVERNMENTS WHERE U.S. COMPANIES DO BUSINESS. AND THE INVITATION READS: "PLEASE RETALIATE." HIS TAX WOULD NOT ONLY DESTROY JOBS AND REDUCE INVESTMENT HERE; IT WOULD DO THE SAME THROUGHOUT THE GLOBAL ECONOMY -- CAUSING A WORLDWIDE CONTRACTION. THERE WAS ANOTHER OCCASION WHEN THAT HAPPENED -- RIGHT BEFORE THE GREAT DEPRESSION. - 14 - SO THOSE ARE THE FACTS ABOUT GOVERNOR CLINTON'S TAX: IT WILL DESTROY JOBS. IT WILL DISCOURAGE INVESTMENT. AND IT THREATENS TO START AN ECONOMIC WAR JUST AS MARKETS THE WORLD OVER ARE OPENING UP TO AMERICAN PRODUCTS. WE SHOULD ASK WHY, GIVEN ALL THIS, GOVERNOR CLINTON WOULD EVER PROPOSE SUCH A TAX IN THE FIRST PLACE. I HAVE A HUNCH. TODAY CHANGE IS ACCELERATING, AND CHANGE BREEDS UNEASINESS, SKEPTICISM, EVEN FEAR. AND BY ATTACKING THE BOGEYMEN OF FOREIGN INVESTORS, GOVERNOR CLINTON HOPES TO EXPLOIT THE DARKER IMPULSES OF THIS UNCERTAIN AGE -- FEAR OF THE FUTURE, FEAR OF THE UNKNOWN, FEAR OF FOREIGNERS. - 15 - NOW I KNOW GOVERNOR CLINTON'S REPUTATION FOR OPPORTUNISM -- AS THE KIND OF GUY WHO'LL SAY ANYTHING, DO ANYTHING, FOR POLITICAL GAIN. BUT HE SHOULD UNDERSTAND WHAT'S AT STAKE HERE, AND IF HE DOESN'T KNOW, LET ME TELL HIM: THOSE ARE AMERICAN JOBS HE'S PLAYING POLITICS WITH. THOSE ARE AMERICAN WORKERS HE'S PUTTING AT RISK. THE AMERICAN PEOPLE WON'T BUY IT. THE PROUDEST PEOPLE ON EARTH HAVE NEVER STOOPED TO FEARMONGERS BEFORE, AND WE'RE NOT GOING TO START NOW. IN TALKING ABOUT AMERICA'S FUTURE IN THE GLOBAL ECONOMY, I MENTIONED MY OWN EXPERIENCE, BECAUSE I WANT YOU TO UNDERSTAND WHY I BELIEVE WHAT I DO ABOUT AMERICA'S ABILITY TO COMPETE. I'VE BUILT A BUSINESS; I'VE DEALT WITH FOREIGN NATIONS; AND I KNOW HOW TO BRING IT TOGETHER -- I KNOW WHAT IT TAKES TO MAKE AMERICA SECURE AND STRONG AT HOME AND ABROAD. - 16 - SO YOU SEE, YOUR VOTE WILL MAKE A DIFFERENCE THIS YEAR -- AND NOT ONLY IN THE PRESIDENTIAL ELECTION. WHEN YOU LOOK AT YOUR CANDIDATES FOR CONGRESS, I'D LIKE YOU TO ASK THEM SOMETHING. ASK THEM WHERE THEY STAND ON KEEPING AMERICA AN EXPORT SUPERPOWER -- ON OUR NEW TRADE AGREEMENT -- AND ON GOVERNOR CLINTON'S NEW TAXES ON INVESTMENT AND JOBS. - 17 - PLEASE LISTEN TO THEIR ANSWERS CAREFULLY. AND THIS IS IMPORTANT -- PLEASE FOLLOW UP. SOME OF THEM WILL DO MORE FLIP-FLOPS THAN OZZIE SMITH. I'LL GIVE YOU AN EXAMPLE. EARLIER THIS SUMMER, WE LOST A CLOSE BATTLE IN CONGRESS FOR A CONSTITUTIONAL AMENDMENT TO BALANCE THE FEDERAL BUDGET. ONE OF ST. LOUIS'S REPRESENTATIVES -- JOAN HORN -- SIGNED UP AS A CO-SPONSOR OF THE AMENDMENT IN APRIL. THEN, WHEN IT CAME TIME TO VOTE, SHE DID AN OZZIE SMITH. SHE VOTED AGAINST THE AMENDMENT SHE HAD CO-SPONSORED. SO THIS FALL, WHEN YOU ASK REPRESENTATIVE HORN ABOUT THE ISSUES, ASK HER ABOUT THE BALANCED BUDGET AMENDMENT. LET HER KNOW BEFORE SHE LISTENS TO THE DEMOCRATIC LEADERSHIP IN CONGRESS, SHE SHOULD LISTEN TO HER HEART. SHE SHOULD LISTEN TO MISSOURI. - 18 - - THOSE ARE THE KIND OF CHOICES WE FACE THIS YEAR -- A CHOICE BETWEEN THE PATRONS OF THE PAST AND THE ARCHITECTS OF THE FUTURE. I BELIEVE WE CAN SHAPE OUR FUTURE - -- NOT BY TAXING TRADE BUT BY OPENING MARKETS; NOT BY SCARING OFF INVESTMENT BUT BY USING IT TO CREATE JOBS FOR OURSELVES AND OUR KIDS. I HAVE FAITH IN AMERICA'S FUTURE -- BECAUSE I HAVE FAITH IN THE AMERICAN PEOPLE. IT'S THE SAME FAITH THAT BROUGHT ME OUT TO TEXAS MORE THAN 40 YEARS AGO -- THE SAME FAITH THAT BROUGHT ME INTO PUBLIC LIFE -- THE SAME FAITH THAT HAS LED ME TO FIGHT FOR OPEN MARKETS -- BECAUSE I KNOW THAT NO CHALLENGE IS T00 GREAT FOR THE HEARTS AND HANDS AND MINDS OF AMERICA. THANK YOU AND GOD BLESS YOU. # # # Document No. 346876ss WHITE HOUSE STAFFING MEMORANDUM DATE: 8/26/92 ACTION/CONCURRENCE/COMMENT DUE BY: --- PRESIDENTIAL REMARKS: PUBLIC SAFETY EQUIPMENT EVENT SUBJECT: ST. LOUIS, MO.- - 8/27/92 - 9:00 a.m. ACTION FYI ACTION FYI VICE PRESIDENT MOORE BAKER MULLINS SCOWCROFT PETERSMEYER DARMAN PORTER BRADY PROVOST BROMLEY ROSS CALIO SMITH DEMAREST TUTWILER FITZWATER ZOELLICK GRAY KAUFMAN HOLIDAY MCGROARTY HORNER BOSKIN MCBRIDE REMARKS: The attached has been forwarded to the President. RESPONSE: PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 THE WHITE HOUSE WASHINGTON P1:27 August 26, 1992 MEMORANDUM FOR THE PRESIDENT THROUGH: DAN MC GROARTY you FROM: ANDY FERGUSON 07 SUBJECT: PROPOSED REMARKS FOR PUBLIC SAFETY EQUIPMENT EVENT I. SUMMARY On Thursday, August 27, at 9:00 a.m., you will address approximately 2,000 people at Public Safety Equipment, Inc. in St. Louis, Missouri. The company exports light bars for emergency vehicles worldwide. II. DISCUSSION Your remarks (approximately 18 minutes / teleprompter) discuss the importance of NAFTA and explains Gov. Clinton's plan to tax foreign investment in the United States. Your remarks also criticize Missouri Rep. Dick Gephardt's proposal for a "transaction tax" within a free trade zone. (Ferguson/Walters) August 26, 1992 12:20 p.m. STLOUIS PRESIDENTIAL REMARKS: PUBLIC SAFETY EQUIPMENT, INC. ST. LOUIS, MISSOURI AUGUST 27, 1992 9:00 A.M. (??) Thank you and good morning. (Acknowledgments) ((This is great. Look at the equipment you have here -- light bars, beacons -- you've given a whole new meaning to a thousand points of light.)) ((I may take some of your sirens back to Washington. They're the only thing that makes more noise than the White House press corps.) You know, the press specializes in the business of bad news. But today I'd like to open with some good news. Together we have seen a world transformed these past three and a half years -- a world made new by American strength and resolve. And now that the Cold War is over, the defining challenge of the '90s is to win the economic competition of the new global economy -- to win the peace. Our goal is simple and profound: We must be a military superpower, an economic superpower and an export superpower. In this election, you'll hear two versions of how to do this. My opponents' answer is to look inward, and protect what we already have from the challenges of this new world. My approach is to look forward -- to open new markets, prepare our people to compete, to restore our social fabric -- to save and invest, so that we can win. 2 I wanted to come here today to St. Louis to lay out the sharp difference between Governor Clinton and me on the crucial issue of investment and open trade. My policies encourage both - - because my experience in business and foreign affairs has shown me that trade and investment create jobs. In contrast, my opponent and the Democratic Congress want to tax both trade and investment. But taxes stifle things -- and in this case, their taxes would chase away business and destroy jobs. I know my opponent has lots of slogans and policy buzzwords that sound appealing when you first hear them -- but America can't afford them. Take the story of PSE as an example of America's competitive capabilities. There was a time when companies like PSE could be satisfied with a national market -- sell your goods in the fifty states and leave it at that. That's no longer good enough. So five years ago, you took on the world. I'm told that now 35 percent of what you build is sold outside our borders, in 66 different countries. Today your light bars and sirens help save lives not only on the streets of Detroit and Peoria, but in Israel, Hong Kong and Spain. PSE's story is a parable for our entire country's economic future -- never settling for less, always pushing ahead, embracing the challenges of foreign competition and reshaping them as opportunities. 3 Let me offer a personal note -- tell you how I first learned about competing in the world. I spent a good part of my life out in West Texas, in the oil business. I painted rigs for a while, even lived out of a suitcase as a salesman. And all around me in those days I saw towns and businesses rise up from nothing, for a simple reason: The world wanted what Texas had to offer -- cotton and cattle and crude. We understood that the more goods we sold outside our borders, the more jobs we could create within them. Later on, when I started my own business, I learned again: we had to take a global view to compete. I shopped for investors on the west coast, on the east coast, but I couldn't stop there. I traveled the world -- to Europe and the Far East. Every dollar we could bring into this country was a dollar that went to expand our company, create jobs in our community. Then when I started to get involved in foreign relations, I built on that experience. I've learned how important America is to the world, but also how important the world is to America -- not just for national security in the traditional sense, but for our economic security, for creating jobs, right here at home. We've held steady to this vision for three years now, and we've made real progress. As we knock down trade barriers, American companies are rushing to meet the demand. Since I took office, exports have increased by one-third. America is the 4 greatest exporter the world has ever seen -- $422 billion dollars of exports last year alone. Let me bring it close to home. In Missouri, exports are up 37 percent over the last three years -- $4.5 billion worth of goods shipped to 166 countries around the world. Impressive numbers, but when you dig behind the trade statistics, you find the real benefit of the new world economy I - in a word, it's jobs. Here in Missouri, 100,000 jobs are supported by foreign trade. Across the country, more than 7 million Americans owe their jobs to trade. Everyone recognizes that the world is moving at a faster pace, but I see something more: it's moving our way. Right now we're building on the export success of the last three years. Two weeks ago we entered a new era of open trade. Along with Mexico and Canada, we initialed the North American Free Trade Agreement, with the goal of knocking down tariffs and creating one of the largest free-trade areas in the world -- an integrated economy worth more than $6 trillion dollars. Here in Missouri, you already export $2 billion worth of goods to Mexico and Canada. That's a lot of paychecks, but our new agreement will create still more jobs, and make us even stronger in the race with our European and Asian competitors. NAFTA is a solid agreement -- when you've been in as many tough negotiations as I have, you learn to tell the difference. We're going to take this case to the protectionists on Capitol Hill, because they need to hear it. Right now, before our 5 initials are even dry on the agreement, the Democratic leadership in Congress is calling for us to slap a tarriff on any new trade that comes from NAFTA. Think about that for a minute -- ((that's a minute longer than they've thought about it)). After long, tough negotiations with our two closest trading partners, we've agreed to end tariffs. The congressional Democrats say: Okay, fine. But first you have to put on a new tariff. In other words, they think the way to eliminate trade barriers is to build a new trade barrier. That's like telling us they want us to hit a homerun, but please only if we run around the bases backward. This "transaction tax," as they call it, will make it more expensive for our businesses to compete with the European and Asians -- and it will discourage the creation of new jobs for you and your neighbors. It turns the agreement on its head -- defeats the whole purpose. What about Governor Clinton? Where does he stand? Well, just last week, when asked about our new trade agreement, he hemmed and hawed, and at last he said: "When I have a definitive opinion, I'll say so." No matter how much Governor Clinton would like to fudge the issue, the difference couldn't be clearer -- and the difference is based on two very different views of America's future. My opponents see us knocking down trade barriers and they say: Hold everything. They see us open new markets for American goods and 6 they say: Wait a minute. Maybe we can't compete. The American worker can't cut it. So let's pull down the blinds, lock the doors and hope the world goes away. Well, let me tell them something you already know. The American worker doesn't have to hide from anybody. Americans can outwork, out-think, out-compete anybody, anywhere, anytime. That's something everyone in the world seems to understand - - everyone but the protectionist Democrats. Over the last decade, we've seen a flood of foreign investment in the United States -- businesses from all over the world setting up shop from Portland, Oregon to Portland, Maine. These investors follow a simple logic: if you want the best science and universities in the world, if you want the best workers in the world, you have to come to the U.S.A. The result has been jobs: One out of every ten manufacturing workers in the United States works for a company supported by foreign investment. And that's the bottom line: jobs for Americans, a growing economic pie for everyone. Now, here's one issue where Governor Clinton doesn't waffle. He's surveyed the issue of foreign investment and come out foresquare for -- you guessed it -- a tax increase. He's proposed to increase taxes on foreign investment in the United States, even though those companies employ a total of 4 and one-half million Americans. [Governor Clinton says his new tax will raise $45 billion. He might want to talk to his own Democrats on Capitol Hill. The 7 Joint Committee on Taxation says that estimate is about 45 times too high.] Governor Clinton says his tax increase will "crack down" on foreign companies, but all it will really do is drive them out. And if they go, they'll take those jobs with them. Travel around this state. Go to New Madrid (MA-drid), talk to the 1200 employees at Noranda Aluminum -- or to Joplin, talk to the 425 employees of Atlas Powder. Go to any of the 244 foreign-owned companies that employ 60,000 workers right here in Missouri. I don't think you're going to find any of those Missourians railing against the evils of foreign investment. If Governor Clinton's tax hike had been in effect these past few years, those companies wouldn't be here -- and those jobs wouldn't have been created for Missourians. And it's not just Missouri. Whether it's the Nissan plant in Tennessee -- or the proposed BMW plant in South Carolina -- Governor Clinton's tax increase would be felt in every region of every state of this country. Governor Clinton needs to learn something about international relations. If he raises this tax, our foreign competitors are going to say: "What's good for the goose is good for the gander." His tax is like a gilded invitation sent to foreign governments where U.S. companies also do business. And the invititation reads: "Please retaliate." The result would be not just a reduction in investment here, but a contraction worldwide. There was another occasion when 8 that happened. It was in 1930. Right before the great depression. [[No other major industrial nation favors the kind of tax increase Governor Clinton proposes -- not Germany, not Japan. But I can tell you one nation that does tax foreign investment as he would like: India. Well, here's a promise I am proud to make: As long as I am president, India will not be a model for how to conduct economic policy in the United States of America. ]] Let's review the facts about Governor Clinton's tax: It won't raise revenue. It won't create a single job. It will discourage investment. And it threatens to start a trade war at the very moment when markets the world over are opening up to American products. We should ask why, given all this, Governor Clinton would ever propose such a tax in the first place. I can tell you why. Today change is accelerating, and change breeds uneasiness, skepticism, even fear. And by disparaging foreign investment, Governor Clinton hopes to exploit the darker fears of this uncertain age -- fear of the future, fear of the unknown, fear of foreigners. Well, let me tell Governor Clinton something: Play politics all you want, but those are American jobs you're playing politics with. Those are American workers you're putting at risk. 9 The American people won't buy it. The proudest people on earth have never stooped to fearmongers before, and we're not going to start now. In talking about America's future in the global economy, I mentioned my own experience, because I want you to understand why I believe what I do about America's ability to compete. I've built a business; I've dealt with foreign nations; I know what it takes to make America secure and strong at home and abroad. Governor Clinton takes a different view, and it is borne of his life experience -- a life spent in Arkansas government. So the American people have a clear choice this year. It's a choice between the patrons of the past and the architects of the future. I believe we can shape what lies ahead -- not by turning away from challenges but by doing what you here at PSE have done -- meeting the competition head on, making foreign markets your own. I have faith in America's future -- because I have faith in the American people. It's the same faith that brought me out to Texas more than 40 years ago -- the same faith that brought me into public life -- the same faith that has led me to fight for open markets -- because I know that no challenge is too great for the American heart. Thank you and God bless you. # 1518 Aug. 26 / Administration of George Bush, 1992 Note: This proclamation was published in and where appropriate excuse from duty, the Federal Register on August 28. without charge to leave or loss of pay, any such employee who is faced with a personal emergency because of the storm and who can be spared from his or her usual responsibil- Letter to Congressional Leaders ities. This policy should also be applied to Reporting a Budget Deferral any employee who is needed for emergency August 26, 1992 law enforcement, relief, or clean-up efforts authorized by Federal, State, or local officials Dear Mr. Speaker: (Dear Mr. President:) having jurisdiction. In accordance with the Congressional Budget and Impoundment Control Act of George Bush 1974, I herewith report one deferral of budg- et authority, totaling $17.6 million. Including this deferral, funds withheld in FY 1992 now total $5.8 billion. Remarks to Public Safety Equipment The deferral affects the Agency for Inter- Employees in St. Louis, Missouri national Development. The details of this de- ferral are contained in the attached report. August 27, 1992 Sincerely, Thank you all. I know, anything to get out George Bush of work. [Laughter] Steve, thank you, thank you very much for that kind and genuine in- Note: Identical letters were sent to Thomas troduction. Let me thank some other mem- S. Foley, Speaker of the House of Representa- bers of the host committee: Mike Latta, one tives, and Dan Quayle, President of the Sen- of the founders, Ed Ryan, Andrew Smith. ate. And of course, I'm very, very pleased that my dear friend and your great Governor, John Ashcroft, could be with us this morning. He's done a superb job for this State, and Memorandum on Administrative I'm proud to be at his side once again. Dismissal of Employees Affected by This is really great. Look at the equipment Hurricane Andrew you have here, lightbars, beacons. You've August 26, 1992 given a new meaning to a thousand points of light. [Laughter] Memorandum for the Heads of Executive Departments and Agencies Over the past 3½ years we've seen a world transformed, as Steve mentioned in his intro- Subject: Administrative Dismissal of duction. And yes, the cold war is over. And Employees Affected by Hurricane Andrew now the defining challenge of the nineties Our hearts go out to the thousands of is to win the competition of this new global Americans in South Florida and along the economy, to win the peace. Our goal is sim- Gulf Coast who have suffered tragic losses ple and profound: We must be a military su- at the hands of Hurricane Andrew. Many perpower, an economic superpower, and an parts of the Federal Government have been export superpower. mobilized to respond to this disaster and to In this election, you're going to hear two begin a massive effort to recover from the versions of how to do this. My opponent's ravages of this storm. answer is to turn inward, to protect what we As part of this effort, I request heads of already have from the challenges of this new executive departments and agencies who world. My approach is to look forward, to have Federal civilian employees in the geo- look out, to open new markets, prepare our graphic areas designated as disaster areas be- people to compete, to restore our social fab- cause of Hurricane Andrew to use their dis- ric, and to save and invest so that we can cretion under OPM and agency regulations win. orge Bush, 1992 Administration of George Bush, 1992 / Aug. 27 1519 use from duty, I've come to St. Louis today not to-you'll nomics in the oil fields of west Texas, paint- OSS of pay, any be happy to know-not to have a political ing rigs, and then for a while I drove tens with a personal rally, but really to deliver a serious message of thousands of miles through the fields in rm and who can to the people in this factory, the people in Texas and New Mexico and then California sual responsibil- Missouri, and the people in the country. I and back to Texas. All around me in those ) be applied to want to point out the sharp difference be- days I saw towns and businesses start from 1 for emergency tween Governor Clinton and me on the cru- nothing, for a simple reason: The world want- clean-up efforts cial issues of investment and open trade. My ed what Texas had to offer: cotton, cattle, or local officials policies encourage both because my experi- crude. ence in business and foreign affairs has Later on, when I started my own business, shown me that trade and investment create I shopped for investors on the west coast and George Bush jobs. the east coast, but I couldn't stop there. I In contrast, my opponent and, regrettably, traveled the world. We had a tiny company, the Democratic Congress want to tax both smaller than PSE by far. And that little com- trade and investment. But common sense pany exported our services, and I think suc- y Equipment tells us that if you tax something you get less cess, to Japan, to Brunei, to South America, Missouri of it. Taxes stifle growth and chase away busi- and to the Middle East. We created Amer- ness and destroy jobs. ican jobs in the process. I know that the other side has lots of slo- Now, I tried to build on that experience vthing to get out gans and policy buzzwords that sound ap- when I got involved in foreign relations. And hank you, thank pealing when you first hear them, but Amer- I saw again how important America is to the and genuine in- ica cannot afford them. There's a difference world, and how important the world is to me other mem- between soundbites and sound policy. Talk America, not just for national security in the Mike Latta, one is cheap until you get the bill. traditional sense, but for economic security, Andrew Smith. The reason I'm so pleased to be here is for our own economic security, for creating ery pleased that because PSE is an example of where I be- jobs right here at home. great Governor, lieve this whole country should go and how We've held steady to this vision for 3 years us this morning. we should get there. Not so long ago compa- now, and we have made solid progress. As this State, and nies like PSE could be satisfied with a na- we knock down trade barriers, American ice again. tional market, sell your goods in the 50 companies are rushing to meet the demand States, leave it at that. it the equipment all around the world. More and more people beacons. You've That's no longer good enough. So a few are buying American. Since I took office, ex- years ago, you decided to take on the world. thousand points ports have increased by. one-third. America I'm told that now 35 percent, or about a third is the greatest exporter in the entire world, of what you make, is sold outside the borders greatest one the world has ever seen, $422 e've seen a world of the United States and in 48 different coun- billion of exports last year alone. oned in his intro- tries. Today your lightbars and sirens help Let me bring that right into the shop here war is over. And save lives not only on the streets of Detroit in St. Louis, bring it close to home. In Mis- e of the nineties and Peoria, but in Israel, Hong Kong, and souri, exports are up 37 percent over the last of this new global Spain. I was told that when the Kuwaitis, 3 years, $3.8 billion worth of goods shipped Our goal is sim- their country freed, went back in that your to 151 countries around the world. It looks be a military su- products helped lead the way and keep the like the "Show Me State" is showing the erpower, and an peace. world. You know, your story is a parable for our Now these numbers are impressive, but oing to hear two Nation's economic future. You've taken the when you dig behind them, get in behind My opponent's challenges of foreign competition and re- the math, you find the real benefit of the protect what we shaped them as opportunities, made your new world economy, and in a word, it is jobs. enges of this new name literally a standard of excellence. You Here in Missouri, 150,000 jobs are supported look forward, to should be very, very proud of that, every sin- by foreign trade. Across the country, more kets, prepare our gle person that works here. than 7 million Americans owe their jobs to re our social fab- I don't want to bore you with life history, exports. so that we can but let me tell you how I first learned about Everyone recognizes, everyone now, that competing in the world. I learned my eco- the world is moving at a faster clip, but I 1520 Aug. 27 / Administration of George Bush, 1992 see something more: It's moving our way. views of our future. My opponents see us Right now we're building on the export suc- knock down trade barriers, and they say, cess of the last 3 years. Two weeks ago we "Hold everything." They see us open new entered into an era, a new era, I'd say, of markets for American goods and they say, open trade. Along with Mexico and Canada, "Wait a minute. Maybe we can't compete. we concluded talks on the North American Maybe the American worker can't cut it. So free trade agreement, called NAFTA, knock- let's pull down the blinds, lock the doors, and ing down tariffs and creating one of the larg- hope the world goes away." est free-trade areas in the world, an inte- Let me tell them something you already grated economy worth more than $6 trillion. know in this plant. The American worker Here in Missouri, you already export $2 doesn't have to hide from anybody. Ameri- billion worth of goods to Mexico and Canada. cans can outwork, outthink, outcompete any- That's a lot of paychecks, but our new agree- body, anywhere, anytime. And that's what ment will create even more American jobs we're trying to do: expand these markets. and make us even stronger in the race with That's something everyone in the world our European and Asian competitors. seems to understand, everybody but the pro- NAFTA is a solid agreement. But right tectionist Democrats. now, before the ink is even dry, the Demo- Over the last decade, we have literally seen cratic leadership in the Congress is calling a boom in foreign investment in the United for us to slap a tariff on any new trade that States, even when things are very, very tough comes from NAFTA. Now, you've got to- at home. We've seen a boom in that. Busi- this is complicated, but just think about it nesses from all over the world coming here, for a minute. After long and tough negotia- setting up shop from Portland, Oregon to tions with our closest trading partners, we've Portland, Maine. These investors follow a agreed to end tariffs. The protectionist simple logic: If you want the best science and Democrats say, "Okay, fine. But first you universities in the world, if you want the best have to put on a new tariff." workers in the world, you have to come to In other words, they think the way to the United States of America. And the result eliminate trade barriers is build a new trade has been jobs. One out of every ten manufac- barrier. And they call this new tariff a trans- turing workers in the United States works action tax. It'll make it more expensive for for a company supported by foreign invest- businesses like yours to compete in the world ment. That's the bottom line: jobs for Ameri- economy. And it will discourage the creation cans, a growing economic pie for everyone. of new jobs for your neighbors and, most im- Now, here's one issue Governor Clinton portant, for you. It turns the agreement on does not fudge. He's proposed to increase its head. They may think that's good politics, taxes on foreign investment in the United but it is, frankly, lousy policy. States, even though those companies employ Now, you might ask, what about Governor a total of 4½ million American workers. Gov- Clinton on this, where does he stand? Just ernor Clinton says his tax increase will crack last week, he was asked about our new trade down on foreign companies. But that crack- agreement, and he hemmed and hawed, and down is more like an eviction notice. When at last he said, and I quote, "When I have those companies pack their bags, they'll take a definitive opinion, I'll say so." I hope no- those jobs with them. I'm not going to let body's planning to hold their breath on this that happen. one. [Laughter] I know politics. And I guess We've got to open markets. We've got to as a candidate you can be on both sides of encourage investment here, encourage in- every question. But as a President, you can- vestment abroad, create new markets for the not. You have to make the tough decisions. American worker. And you shouldn't be on both sides of each All I ask is that you just travel around this issue. State. Go to New Madrid, talk to the 1,200 Governor Clinton can fudge all he wants, employees at Noranda Aluminum, or to Jop- but the difference couldn't be clearer. The lin, talk to the 425 employees at Atlas Pow- difference is based on two very different der. Go to any of the 244 foreign-owned orge Bush, 1992 Administration of George Bush, 1992 / Aug. 27 1521 oponents see us companies that employ 60,000 workers, do anything for political gain. But he should and they say, 60,000 Missouri workers right here. And I understand what's at stake here. And if he e us open new don't think you're going to find any of those doesn't understand it, let me tell him. Those is and they say, Missourians complaining about foreign in- are American jobs he's playing politics with. can't compete. vestment. If Governor Clinton's tax hike had Those are American workers he's putting at r can't cut it. So been in effect these past few years, those risk. The American people simply won't buy ck the doors, and companies simply would not be here, and it. The proudest people on Earth have never those jobs wouldn't have been created for stooped to fearmongers before, and we must ing you already the citizens of Missouri. And it's not just Mis- not stoop now to fearmongers. merican worker souri. Whether it's the Nissan plant in Smyr- In talking about our future in the global .nybody. Ameri- na, Tennessee, or the Honda plant in economy, I mentioned, touched on my own outcompete any- Marysville, Ohio, Governor Clinton's tax in- experience because I want you to understand And that's what crease would be felt in every region of every why I believe what I do about America's abil- these markets. State in this country. ity to compete. I've, with a lot of help, built in the world And he could use a lesson in international a business; and I've dealt with foreign na- ody but the pro- relations. If he raises this tax, our foreign tions. I know how to bring it together. I know competitors are going to say, "What's good what it takes to make America secure and ave literally seen for the goose is good for the gander." His strong at home and abroad. it in the United tax hike is like a gilded invitation sent to for- So, you see, your vote will make a dif- very, very tough eign governments where U.S. companies do ference this year, not only in the Presidential n in that. Busi- business. And the invitation reads: Please re- election. When you look at your candidates -Id coming here, taliate. You do not want these governments for Congress, I'd like you to ask them some- and, Oregon to abroad to retaliate against Code 3, against thing. Ask them where they stand on keeping vestors follow a your wonderful products because of tariff America an export superpower, on our new best science and policies or tax policies in the United States. trade agreement, and on Governor Clinton's ou.want the best His tax would not only destroy jobs and new taxes on investment and jobs. Please lis- have to come to reduce investment here, it would do the ten to the answers very carefully. Don't let 1. And the result same throughout the global economy, caus- them talk any longer-talk one way in Mis- ery ten manufac- ing a worldwide contraction. I don't have to souri and another way back in Washington, ed States works ask you to go back to the history books, but DC. / foreign invest- there was an occasion when that happened, And this is important. Please follow up. jobs for Ameri- right before the Great Depression. And we're Some of them will do more flip-flops than ie for everyone. fighting our way out of a tough recession Ozzie Smith out there. [Laughter] I'll give overnor Clinton now, and we don't need to throw more Amer- you an example. Earlier this summer we lost sed to increase icans out of work. So look carefully at this a close battle in Congress for a constitutional t in the United taxing. amendment to balance the Federal budget, ompanies employ Those are the facts about Governor Clin- to discipline the Congress and discipline the an workers. Gov- ton's tax: It will literally destroy jobs, discour- executive branch. One of St. Louis' rep- crease will crack age investment, and it threatens to start an resentatives, Joan Kelly Horn, signed up- But that crack- economic war just as markets the world over this is going to be hard for you to believe- in notice. When are opening up to American products. signed up as a co-sponsor, one of the leaders bags, they'll take We should ask why, given all this, Gov- of, a co-sponsor of the amendment to cause not going to let ernor Clinton would ever propose such a tax us to have to balance the budget. She signed in the first place. Well, I have a hunch. Today up in April. And then when it came to the ts. We've got to change is accelerating, and change breeds a vote, she flipped. She voted against the very encourage in- certain uneasiness, skepticism, even fear. same amendment that she had co-sponsored. markets for the And by attacking the bogeymen of foreign Enough is enough. This fall ask her about investors, Governor Clinton hopes to exploit that balanced budget amendment, and vote ravel around this the darker impulses of this uncertain age: for Jim Tallent, her opponent. And I know alk to the 1,200 fear of the future, fear of the unknown, fear Matt Holekamp supports the balanced budg- inum, or to Jop- of foreigners. et amendment, too. Vote for him. We need es at Atlas Pow- Now, I know his reputation for opportun- to make people do in Washington what they 1 foreign-owned ism, as the kind of guy who will say anything, tell you in Missouri they're going to do. 1522 Aug. 27 / Administration of George Bush, 1992 Well, anyway, those are the kind of choices and mention those Olympians that were we face this year, a choice between the pa- here, Mike McMurray and Joe Hudepohl trons of the past and the architects of the and Tim Austin, thanking them for being future. I believe we can shape our future not with us and for what they did for the United by taxing trade, but by opening markets; not States of America in Barcelona. Also, a spe- by scaring off investment, but by using it to cial thanks to my friend Johnny Bench, create jobs for ourselves and our kids. everybody's hero. I have great faith in America's future be- These athletes, these competitors know cause I have faith in the American people something about competition, and this year's and in the American worker. It is the same campaign is about one question: how Amer- faith that brought me out to Texas more than ica can win the economic competition and 40 years ago, the same faith that brought me win the peace. I believe I am the person to into public life, the same faith that has led lead us to do just that. me to fight for these open markets, because You know, you can't build a home without I know that no challenge is too great for the a hammer; you can't build a dream without hearts and the minds of America. a job. So you need to know which candidate And lastly, do not listen to the pessimists has a plan to fulfill your dreams. I believe who tell you that the United States of Amer- I have the plan that works for America. My ica is in decline. We are at the sunrise, not plan starts with the idea that the deficit, the the sunset. And if we pursue these opening big spending deficit, is a dark cloud hovering of markets, we will demonstrate to the entire over the future of these kids. The Federal world once again why everybody looks to Government spends too much of your hard- America: peace, security, strength, freedom, earned money. Help me put an end to that. democracy, and an ability to outwork any- I have asked Congress to take over 4,000 body, anywhere, anytime. specific projects, 250 Federal programs and Thank you all very, very much. And God send them the way of the pet rocks and the bless you. mood rings. And they refuse to act. Here's another idea. So far, Congress has Note: The President spoke at 9:10 a.m. on said no to my efforts to cut spending. So last the shop floor at Public Safety Equipment, week I put. forth a new idea. If they can't Inc. In his remarks, he referred to PSE offi- do it, I want to give you, the taxpayer, the cials Stephen Rose, engineer; Michael D. power to take up to 10 percent of your tax Latta, president; Edward F. Ryan, vice presi- return, earmark it for one purpose only: re- dent, marketing; and Andrew G. Smith, vice duce the dangerous Federal deficit. If you president, engineering; and Ozzie Smith of can check off for America, I believe we will the St. Louis Cardinals baseball team. finally get the big spenders up there in Wash- ington in check. You might say, "How do we create jobs in America?" Well, unlike my opponent, I Remarks to a Bush-Quayle Rally in spent half my life in the private sector, trying Cincinnati, Ohio to meet a payroll, like many of you out here. August 27, 1992 I happen to believe that having held a job in the private sector is a good qualification The President. Thank you very much. for President of the United States or for any- Hey, George Voinovich, thank you very, very thing else. much. Thank you. Last time I was at a rally I know this, that taxes stifle growth and at this marvelous park, Johnny Bench and they stop job creation. So with a new Con- I rode in on a fire engine, and it started to gress, and we're going to have a new one, rain. Now the sun is out, and things are look- we will cut spending, and then we'll cut taxes. ing good. They want to increase spending and increase I want to thank George Voinovich, all our taxes, and that is the big difference. other great leaders here. I want to thank Another thing: I want to get rid of all those Ronnie McDowell for that musical number crazy lawsuits. If you fall off a stepladder Document No. 346876ss 6508 WHITE HOUSE STAFFING-MEMORANDUM DATE: ACTION/CONCURRENCE/COMMENT P8:27 DUE 27 BY: 10:00 a.m. 08/26 P8: 08/25/92 SUBJECT: PRESIDENTIAL REMARKS: PUBLIC SAFETY EQUIPMENT, INC., ST. LOUIS, MO- 08/27/92 ACTION FYI ACTION FYI VICE PRESIDENT MOORE BAKER MULLINS SCOWCROFT PETERSMEYER DARMAN PORTER BRADY PROVOST BROMLEY ROSS CALIO SMITH DEMAREST TUTWILER FITZWATER ZOELLICK GRAY KAUFMAN HOLIDAY MCGROARTY HORNER BOSKIN MCBRIDE REMARKS: Please provide any comments directly to Dan McGroarty, Rm. 122, X 2930, no later than 10:00 a.m. on Wednesday, 08/26, with a copy to this office. Thanks. RESPONSE: TO: DAN MCGROARTY August 26, 1992 The NSC staff concurs with the presidential PHILLIP D. BRADY remarks as amended. B Assistant to the President and Staff Secretary Brent Scowcroft Ext. 2702 CC: Phillip D. Brady (Ferguson/Walters August 25, 1992 12/203/25 P6: 43 6:40 p.m. STLOUIS PRESIDENTIAL REMARKS: PUBLIC SAFETY EQUIPMENT, INC. ST. LOUIS, MISSOURI AUGUST 27, 1992 9:00 A.M. (??) Thank you and good morning. (Acknowledgments, humor) Together we have seen a world transformed these past three and a half years -- a world made new by American strength and resolve. But now that the Cold War is over, the defining challenge of the '90s is to win the economic competition of the new global economy -- to win the peace. Our goal is simple and profound: We must be a military superpower, an economic superpower and an export superpower. In this election, you'll hear two versions of how to do this. My opponents' answer is to look inward, and protect what we already have from the challenges of this new world. My approach is to look forward -- to open new markets, prepare our people to compete, to restore our social fabric -- to save and invest, so that we can win. Twenty five years ago, where you're standing was a patch of bleak, undeveloped real estate. Now look around -- because of your dreams and hard-work, that patch of ground is a bustling factory, creating light bars and sirens that help save lives and keep the peace from Manila to Santiago These haven't always becaused ay democratic governments to "keep the peace. Need to pick severatothers 2 There was a time when companies like PSE could be satisfied with a national market -- sell your goods in the fifty states and leave it at that. But you here at PSE know that's no longer good enough. So five years ago, you took on the world. I'm told that now 35 percent of what you build right here is sold outside our borders, in 66 different countries. That bold, forward-looking strategy has helped you weather the uncertainties of the past few years. PSE's story is a parable for our entire country's economic future -- never settling for less, always pushing ahead, embracing the challenges of foreign competition and reshaping them as opportunities. Let me offer a personal note -- tell you how I learned about competing in the world. I spent a good part of my life out in West Texas, in the oil business. I painted rigs for a while, even lived out of a suitcase as a traveling salesman. And all around me in those days -- the fifties and early sixties -- I saw towns and businesses bloom from those dusty plains like desert flowers. Why? The reason was simple: The world wanted what Texas had to offer -- cotton and cattle and crude. We understood that the more goods we sold outside our borders, the more jobs we could create within them. Later on, when I started my own business, I learned again: we had to take a global view to compete. I shopped for investors on the west coast, on the east coast, but I couldn't stop there. 4 Everyone recognizes that the world is moving at a faster pace than ever, but I see something more: it's moving our way. Right now we're building on the export success of the last three years. Two weeks ago we entered a new era of open trade. Along with Mexico and Canada, we announced initialed the North American Free Trade Agreement, with the goal of creating one of the largest free-trade areas in the world -- an integrated economy worth more than $6 trillion dollars. Here in Missouri, you already export $2 billion worth of goods to Mexico and Canada. That's a lot of paychecks, but our new agreement will make that success look like kid's stuff. NAFTA is a solid agreement -- when you've been in as many tough negotiations as I have, you learn to tell the difference. It will protect the environment, and more important, it will protect American workers. And more: it will create new jobs for this generation and the next -- especially the kind of high- tech, high-wage jobs we'll be proud to pass on to our children. We're going to take this case to the liberal Democrats on Capitol Hill, because they need to hear it. A free-trade agreement isn't a way of dividing up the economic pie, where one side's loss is another side's gain; it's a way of making the pie bigger for everyone who participates. The liberals don't seem to get it. Right now, in fact, before our initials are even dry on the agreement, the liberals in Congress -- led by somebody who might be familiar to you, 5 Congressman Dick Gephardt -- are calling for us to slap a tarriff on any new trade that comes from NAFTA. Think about that for a minute -- ((which is a minute longer than they've thought about it)). After years of tough negotiations with our two closest trading partners, we've agreed to end tariffs. The congressional Democrats say: Okay, fine. But first you have to put on a new tariff. In other words, the only way they'll agree to reduce tariffs is if they can raise tariffs. That's like telling us they want us to hit a homerun, but please don't hit it out of the park because we don't want to lose the ball. This "transaction tax," as they call it, will increase the cost of goods you want to buy, and discourage the creation of new jobs for you and your neighbors. It turns the agreement on its head -- defeats the whole purpose. Now, I suppose I could ask my opponent to help me out with his liberal Democrat colleagues on Capitol Hill. Governor Clinton says he's for free trade "in principle." But "in practice" may be a different story. Actually, it's not clear where the governor stands. Last year, Mr. Clinton called a free-trade pact with Mexico "imperative." Then this April, the Washinton Post reported that the protectionists were "breathing easier" because he endorsed their trade position. Then in July, he said he was "applauding Majority Leader Gephardt's efforts." 6 This week, maybe the governor delivered his final word on the subject. He said he was studying our agreement. Then he said: "When I have a definitive opinion, I'll say so." The way Governor Clinton wiggles on free trade, I'm not surprised he compares himself to Elvis. No matter how much Governor Clinton would like to fudge the issue, the difference couldn't be clearer -- and the difference is based on two very different views of America's future. My opponents see trade barriers falling and they say: Hold everything. They see new markets for American goods and they say: Wait a minute. We can't compete. The American worker can't cut it. So let's pull down the blinds, lock the doors and hope the world goes away. Well, let me tell them something you already know. The American worker doesn't have to hide from anybody. We have the most productive workforce in the world. Americans can outwork, out-think, out-compete anybody, anywhere, anytime. That's something everyone in the world seems to understand - - everyone but the protectionist Democrats. Over the last decade, we've seen a flood of foreign investment in the United States, with businesses from all over the world setting up shop from Portland, Oregon to Portland, Maine. These investors are following a simple logic: if you want the best science and universities in the world, if you want the best workers in the world, you have to come to the U.S.A. 7 Now, this investment makes some people uneasy. I understand that -- particularly when the other side tries to stir up fear and resentment against foreign capital. I was in Utah not long ago, and a very articulate woman confronted me on the issue. I told her we probably couldn't see eye to eye on it, but I tried to tell her why I felt so strongly against the isolationism that would keep foreign investment out of America. There was an irony in her timing. I had just returned from meeting with the heads of the industrialized countries in Munich, and while I was there I was pleased to team up with Governor Carroll of South Carolina and the head of BMW to announce a new BMW plant in South Carolina. That means 10,000 jobs to the people of that state. Now, I don't think the 10,000 South Carolinians who get those jobs are going to argue against foreign investment. One out of every ten manufacturing workers in the United States works for a company supported by foreign investment. That's the bottom line on foreign investment in the U.S.: jobs jobs for Americans, and growth for the American economy That's the way the world works in a global economy. Again, Governor Clinton just doesn't seem to understand. But he's not wiggling on the issue of foreign investment -- not at all. He's surveyed the issue and come out foresquare for -- you guessed it -- a tax increase. at the sametime, same america is the largest investor overseas 8 He's proposed to increase taxes on foreign investment in the United States, each one of those companies that employ a total of 4 and one-half million Americans. Governor Clinton says his new tax will raise $45 billion. He might want to talk to his own Democrats on Capitol Hill. The Joint Committee on Taxation says that estimate is about 45 times too high. Governor Clinton says his tax increase will "crack down" on foreign companies, but all it will really do is drive them out. And if they go, they'll take those jobs with them. Travel around this state. Go to New Madrid (MA-drid), talk to the 1200 employees at Noranda Aluminum -- or to Joplin, talk to the 425 employees of Atlas Powder. Go to any of the 244 foreign-owned companies that employ 60,000 workers right here in Missour! If Governor Clinton's tax hike had been in effect these past few years, few if any of those companies would have located in the United States -- few if any of those jobs would have been created for Missourians. And it's not just Missouri. Whether it's the Nissan plant in XX Tennessee -- whether it's the XX plant in xx, XX -- Governor Clinton's tax increase would be felt in every region of every state of this country. Governor Clinton forgets something about international relations. If he raises this tax, our foreign competitors are going to say: "What's good for the goose is good for the gander." 9 His tax is like a gilded invitation sent to foreign governments where U.S. companies also do business. And the invititation reads: "Please retaliate." The result would be not just a reduction in investment here, but a contraction worldwide. There was another occasion when that happened. It was in 1930. Right before the great depression. No other major industrial nation has the kind of tax Governor Clinton proposes -- not Germany, not Japan. But I can tell you one nation that does tax foreign investment as he would like: India. Well, here's a promise I am proud to make: As long as I am president, India will not be a model for how to conduct economic policy in the United States of America. So let's review the facts about Governor Clinton's tax: It won't raise revenue. It won't create a single job. It will discourage investment. And it threatens to start a trade war at the very moment when markets the world over are opening up to American products. We should ask why, given all this, Governor Clinton would ever propose such a tax in the first place. I can tell you why. Today change is accelerating, and change breeds uneasiness, skepticism, even fear. And by disparaging foreign investment, Governor Clinton hopes to exploit the darker fears of this uncertain age -- fear of the future, fear of the unknown, fear of foreigners. 10 Well, let me tell Governor Clinton something: You can play politics with, but those are American jobs you're playing politics with. Those are American workers you're putting at risk. The American people won't buy it. We're bigger than that. The proudest people on earth have never stooped to fearmongers before, and we're not going to start now. In talking about America's future in the global economy, I mentioned my own experience, because I want you to understand why I believe what I do about America's ability to compete. Governor Clinton takes a different view, and it is borne of his life experience -- a life spent in government. You see the difference on issue after issue. I understand that you boost the economy by cutting taxes. I understand that you cut the deficit by cutting spending. I understand that you open markets by tearing down barriers -- by sitting down at the table and hammering out a tough and fair agreement. So the American people have a clear choice this year. It's a choice between the patrons of the past and the architects of the future. I believe we can shape what lies ahead -- not by turning away from challenges but by doing what you here at PSE have done. You didn't shrink from challenge, you embraced it. You didn't shrink from competition, you met it head on. You didn't retreat from foreign markets, you conquered them. I have faith in America's future -- because I have faith in the American people. It's the same faith that brought me out to 11 Texas more than 40 years ago -- the same faith that brought me into public life -- the same faith that has led me to fight for open markets -- because I know that no challenge is too great for the American heart. Thank you and God bless you. # # Document No. 346876ss WHITE HOUSE STAFFING MEMORANDUM DATE: 08/25/92 ACTION/CONCURRENCE/COMMENT DUE BY: 10:00 a.m. 08/26 SUBJECT: PRESIDENTIAL REMARKS: PUBLIC SAFETY EQUIPMENT, INC., ST. LOUIS, MO- 08/27/92 ACTION FYI ACTION FYI VICE PRESIDENT X MOORE to McB By BAKER MULLINS N/C SCOWCROFT PETERSMEYER DARMAN PORTER BRADY x PROVOST BROMLEY ROSS to Mcr, CALIO to AF By phone SMITH my phane DEMAREST per poeton TUTWILER FITZWATER ZOELLICK GRAY N/C KAUFMAN to Mcr By phone HOLIDAY MCGROARTY HORNER BOSKIN MCBRIDE REMARKS: Please provide any comments directly to Dan McGroarty, Rm. 122, X 2930, no later than 10:00 a.m. on Wednesday, 08/26, with a copy to this office. Thanks. RESPONSE: Called 9:00 PHILLIP D. BRADY 10:30 Assistant to the President and Staff Secretary 11:15 Ext. 2702 (Ferguson/Walters) August 25, 1992 6:40 p.m. 2 AUG 25 P6: 43 STLOUIS PRESIDENTIAL REMARKS: PUBLIC SAFETY EQUIPMENT, INC. ST. LOUIS, MISSOURI AUGUST 27, 1992 9:00 A.M. (??) Thank you and good morning. (Acknowledgments, humor) Together we have seen a world transformed these past three and a half years -- a world made new by American strength and resolve. But now that the Cold War is over, the defining challenge of the '90s is to win the economic competition of the new global economy -- to win the peace. Our goal is simple and profound: We must be a military superpower, an economic superpower and an export superpower. In this election, you'll hear two versions of how to do this. My opponents' answer is to look inward, and protect what we already have away from the challenges of this new world. My approach is to look forward -- to open new markets, prepare our people to compete, to restore our social fabric -- to save and invest, so that we can win. Twenty five years ago, where you're standing was a patch of bleak, undeveloped real estate. Now look around -- because of your dreams and hard-work, that patch of ground is a bustling factory, creating light bars and sirens that help save lives and keep the peace from Manila to Santiago. 2 There was a time when companies like PSE could be satisfied with a national market -- sell your goods in the fifty states and leave it at that. But you here at PSE know. that's no longer good enough. So five years ago, you took on the world. I'm told that now 35 percent of what you build right here is sold outside our borders, in 66 different countries. That bold, forward-looking strategy has helped you weather the uncertainties of the past few years. PSE's story is a parable for our entire country's economic future -- never settling for less, always pushing ahead, embracing the challenges of foreign competition and reshaping them as opportunities. Let me offer a personal note -- tell you how I learned about competing in the world. I spent a good part of my life out in West Texas, in the oil business. I painted rigs for a while, even lived out of a suitcase as a traveling salesman. And all around me in those days -- the fifties and early sixties -- I saw towns and businesses bloom from those dusty plains like desert flowers. Why? The reason was simple: The world wanted what Texas had to offer -- cotton and cattle and crude. We understood that the more goods we sold outside our borders, the more jobs we could create within them. Later on, when I started my own business, I learned again: we had to take a global view to compete. I shopped for investors on the west coast, on the east coast, but I couldn't stop there. 3 I traveled the world -- to Europe and the Far East. Every dollar we could bring into this country was a dollar that went to expand our company, create jobs in our community. I've seen it over and over again: as U.N. ambassador, envoy to China, and now as president. You learn how important America is to the world, but you also learn how important the world is to America -- not just for national security, not just for military preparedness, but for creating jobs, right here at home. We've held steady to this vision for three years now, and with great success. As we knock down trade barriers, American companies are rushing to meet the demand. Exports are up XXX in the last five years; America is once again the world's leading exporter. What does that mean right here? I'll bring it closer to home. In Missouri, exports are up 37 percent over the last three years -- $4.5 billion worth of goods shipped to 166 countries on every continent. Impressive numbers, but when you get behind the abstractions of export figures and trade statistics, you find the real benefit of the new world economy -- in a word, it's jobs. Here in Missouri, 100,000 jobs are supported by foreign trade. Across the country, more than 7 million Americans are employed for the same reason. That's the way the world works these days. It's a world where products can be shipped at the speed of sound and investment money can cross borders at the speed of light. 4 Everyone recognizes that the world is moving at a faster pace than ever, but I see something more: it's moving our way. Right now we're building on the export success of the last three Ross years Two weeks ago we entered a new era of open trade. Along We with Mexico and Canada, we initialed the North American Free laying The forndation Trade Agreement, with the goal of creating one of the largest free-trade areas in the world -- an integrated economy worth more for were than $6 trillion dollars. growth more Here in Missouri, you already export $2 billion worth of Jobs. goods to Mexico and Canada. That's a lot of paychecks, but our new agreement will make that success look like kid's stuff. NAFTA is a solid agreement -- when you've been in as many tough negotiations as I have, you learn to tell the difference. It will protect the environment, and more important, it will protect American workers. And more: it will create new jobs for this generation and the next -- especially the kind of high- tech, high-wage jobs we'll be proud to pass on to our children. We're going to take this case to the liberal Democrats on Capitol Hill, because they need to hear it. A free-trade agreement isn't a way of dividing up the economic pie, where one side's loss is another side's gain; it's a way of making the pie bigger for everyone who participates. The liberals don't seem to get it. Right now, in fact, before our initials are even dry on the agreement, the liberals in Congress -- led by somebody who might be familiar to you, 5 Congressman Dick Gephardt -- are calling for us to slap a tarriff on any new trade that comes from NAFTA. Think about that for a minute -- ((which is a minute longer than they've thought about it)). After years of tough negotiations with our two closest trading partners, we've agreed to end tariffs. The congressional Democrats say: Okay, fine. But first you have to put on a new tariff. In other words, the only way they'll agree to reduce tariffs is if they can raise tariffs. That's like telling us they want us to hit a homerun, but please don't hit it out of the park because we don't want to lose the ball. This "transaction tax," as they call it, will increase the cost of goods you want to buy, and discourage the creation of new jobs for you and your neighbors. It turns the agreement on its head -- defeats the whole purpose. Now, I suppose I could ask my opponent to help me out with his liberal Democrat colleagues on Capitol Hill. Governor Clinton says he's for free trade "in principle." as in so many Ross But "in practice" may be a different story. Actually, it's cases, not clear where the governor stands. Last year, Mr. Clinton called a free-trade pact with Mexico "imperative." Then this April, the Washinton Post reported that the protectionists were "breathing easier" because he endorsed their trade position. Then in July, he said he was "applauding Majority Leader Gephardt's efforts." 6 This week, maybe the governor delivered his final word on the subject. He said he was studying our agreement. Then he said: "When I have a definitive opinion, I'll say so." The way Governor Clinton wiggles on free trade, I'm not surprised he compares himself to Elvis. No matter how much Governor Clinton would like to fudge the issue, the difference couldn't be clearer -- and the difference is based on two very different views of America's future. My opponents see trade barriers falling and they say: Hold everything. They see new markets for American goods and they say: Wait a minute. We can't compete. The American worker can't cut it. So let's pull down the blinds, lock the doors and hope the world goes away. Let's tun misand. Ross X Well, let me tell them something you already know. The American worker doesn't have to hide from anybody. We have the most productive workforce in the world. Americans can outwork, out-think, out-compete anybody, anywhere, anytime. That's something everyone in the world seems to understand - - everyone but the protectionist Democrats. Over the last decade, we've seen a flood of foreign investment in the United States, with businesses from all over the world setting up shop from Portland, Oregon to Portland, Maine. These investors are following a simple logic: if you want the best science and universities in the world, if you want the best workers in the world, you have to come to the U.S.A. 7 Now, this investment makes some people uneasy. I understand that -- particularly when the other side tries to stir up fear and resentment against foreign capital. I was in Utah not long ago, and a very articulate woman confronted me on the issue. I told her we probably couldn't see eye to eye on it, but I tried to tell her why I felt so strongly against the isolationism that would keep foreign investment out of America. There was an irony in her timing. I had just returned from meeting with the heads of the industrialized countries in Munich, and while I was there I was pleased to team up with Governor Carroll of South Carolina and the head of BMW to announce a new BMW plant in South Carolina. That means 10,000 jobs to the people of that state. will Ross. Now, I don't think the 10,000 South Carolinians who get those jobs are going to argue against foreign investment. One out of every ten manufacturing workers in the United States works for a company supported by foreign investment. That's the bottom line on foreign investment in the U.S.: jobs -- jobs for Americans, and growth for the American economy. That's the way the world works in a global economy. Again, Governor Clinton just doesn't seem to understand. But he's not wiggling on the issue of foreign investment -- not at all. He's surveyed the issue and come out foresquare for -- you guessed it -- a tax increase. 8 He's proposed to increase taxes on foreign investment in the United States, each one of those companies that employ a total of 4 and one-half million Americans. Governor Clinton says his new tax will raise $45 billion. He might want to talk to his own Democrats on Capitol Hill. The Joint Committee on Taxation says that estimate is about 45 times too high. Governor Clinton says his tax increase will "crack down" on foreign companies, but all it will really do is drive them out. And if they go, they'll take those jobs with them. Travel around this state. Go to New Madrid (MA-drid), talk to the 1200 employees at Noranda Aluminum -- or to Joplin, talk to the 425 employees of Atlas Powder. Go to any of the 244 foreign-owned companies that employ 60,000 workers right here in Missour. If Governor Clinton's tax hike had been in effect these past few years, few if any of those companies would have located in the United States -- few if any of those jobs would have been created for Missourians. And it's not just Missouri. Whether it's the Nissan plant in XX Tennessee -- whether it's the XX plant in xx, XX -- Governor Clinton's tax increase would be felt in every region of every state of this country. Ross Maybe Governor Clinton forgets something about international just doesn't understand relations. If he raises this tax, our foreign competitors are going to say: "What's good for the goose is good for the gander." 9 His tax is like a gilded invitation sent to foreign governments where U.S. companies also do business. And the invititation reads: "Please retaliate." The result would be not just a reduction in investment here, but a contraction worldwide. There was another occasion when that happened. It was in 1930. Right before the great depression. No other major industrial nation has the kind of tax Governor Clinton proposes -- not Germany, not Japan. But I can tell you one nation that does tax foreign investment as he would like: India. Well, here's a promise I am proud to make: As long as I am president, India will not be a model for how to conduct economic policy in the United States of America. So let's review the facts about Governor Clinton's tax: It won't raise revenue. It won't create a single job. It will discourage investment. And it threatens to start a trade war at the very moment when markets the world over are opening up to American products. We should ask why, given all this, Governor Clinton would ever propose such a tax in the first place. I can tell you why. Today change is accelerating, and change breeds uneasiness, skepticism, even fear. And by disparaging foreign investment, Governor Clinton hopes to exploit the darker fears of this uncertain age -- fear of the future, fear of the unknown, fear of foreigners. 10 Well, let me tell Governor Clinton something: You can play Roas politics with, but those are American jobs you're playing politics with. Those are American workers you're putting at risk. The American people won't buy it. We're bigger than that. The proudest people on earth have never stooped to fearmongers before, and we're not going to start now. In talking about America's future in the global economy, I mentioned my own experience, because I want you to understand why I believe what I do about America's ability to compete. Governor Clinton takes a different view, and it is borne of his life experience -- a life spent in government. You see the difference on issue after issue. I understand that you boost the economy by cutting taxes. I understand that Rood you cut the deficit by cutting spending. I understand that you + create new jobs + economic opportunities open markets by tearing down barriers -- by sitting down at the table and hammering out a tough and fair agreement. So the American people have a clear choice this year. It's a choice between the patrons of the past and the architects of the future. I believe we can shape what lies ahead -- not by turning away from challenges but by doing what you here at PSE have done. You didn't shrink from challenge, you embraced it. You didn't shrink from competition, you met it head on. You didn't retreat from foreign markets, you conquered them. I have faith in America's future -- because I have faith in the American people. It's the same faith that brought me out to 11 Texas more than 40 years ago -- the same faith that brought me into public life -- the same faith that has led me to fight for open markets -- because I know that no challenge is too great for the American heart. for the American spint. Thank you and God bless you. # # EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 8.26.92 92 AUG 26 A10: 20 NOTICE: Enclosed are comments from staff members of the Office of Management and Budget (OMB). Such comments do not necessarily represent the official position of the Director of OMB or of the Office of Management and Budget. If you wish to have the Director's personal comments, please let me know -- and contact me if you have any questions. James UCM C. Murr Associate Director for Legislative Reference and Administration Document No. 346876ss WHITE HOUSE STAFFING MEMORANDUM DATE: 08/25/92 ACTION/CONCURRENCE/COMMENT DUE BY: 10:00 a.m. 08/26 SUBJECT: PRESIDENTIAL REMARKS: PUBLIC SAFETY EQUIPMENT, INC., ST. LOUIS, MO- 08/27/92 ACTION FYI ACTION FYI VICE PRESIDENT MOORE BAKER MULLINS SCOWCROFT PETERSMEYER DARMAN PORTER BRADY PROVOST BROMLEY ROSS CALIO SMITH DEMAREST TUTWILER FITZWATER ZOELLICK GRAY KAUFMAN HOLIDAY MCGROARTY HORNER BOSKIN MCBRIDE REMARKS: Please provide any comments directly to Dan McGroarty, Rm. 122, X 2930, no later than 10:00 a.m. on Wednesday, 08/26, with a copy to this office. Thanks. RESPONSE: See comment PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 (Ferguson/Walters) August 25, 1992 6:40 p.m. 02 AUG 25 P6: 43 STLOUIS PRESIDENTIAL REMARKS: PUBLIC SAFETY EQUIPMENT, INC. ST. LOUIS, MISSOURI AUGUST 27, 1992 9:00 A.M. (??) Thank you and good morning. (Acknowledgments, humor) Together we have seen a world transformed these past three and a half years -- a world made new by American strength and resolve. But now that the Cold War is over, the defining challenge of the '90s is to win the economic competition of the new global economy -- to win the peace. Our goal is simple and profound: We must be a military superpower, an economic superpower and an export superpower. In this election, you'll hear two versions of how to do this. My opponents' answer is to look inward, and protect what we already have from the challenges of this new world. My approach is to look forward -- to open new markets, prepare our people to compete, to restore our social fabric -- to save and invest, so that we can win. Twenty five years ago, where you're standing was a patch of bleak, undeveloped real estate. Now look around -- because of your dreams and hard-work, that patch of ground is a bustling factory, creating light bars and sirens that help save lives and keep the peace from Manila to Santiago. 2 There was a time when companies like PSE could be satisfied with a national market -- sell your goods in the fifty states and leave it at that. But you here at PSE know that's no longer good enough. So five years ago, you took on the world. I'm told that now 35 percent of what you build right here is sold outside our borders, in 66 different countries. That bold, forward-looking strategy has helped you weather the uncertainties of the past few years. PSE's story is a parable for our entire country's economic future -- never settling for less, always pushing ahead, embracing the challenges of foreign competition and reshaping them as opportunities. Let me offer a personal note -- tell you how I learned about competing in the world. I spent a good part of my life out in West Texas, in the oil business. I painted rigs for a while, even lived out of a suitcase as a traveling salesman. And all around me in those days -- the fifties and early sixties -- I saw towns and businesses bloom from those dusty plains like desert flowers. Why? The reason was simple: The world wanted what Texas had to offer -- cotton and cattle and crude. We understood that the more goods we sold outside our borders, the more jobs we could create within them. Later on, when I started my own business, I learned again: we had to take a global view to compete. I shopped for investors on the west coast, on the east coast, but I couldn't stop there. June 1992 (s2) 38,284,3 June 1988 (sa) 26,655.7 3 al. Samanie 5873 43.6 6 I traveled the world -- to Europe and the Far East. Every dollar we could bring into this country was a dollar that went to expand our company, create jobs in our community. I've seen it over and over again: as U.N. ambassador, envoy to China, and now as president. You learn how important America is to the world, but you also learn how important the world is to America -- not just for national security, not just for military preparedness, but for creating jobs, right here at home. We've held steady to this vision for three years now, and Samalier with great success. As we knock down trade barriers, American companies four are rushing to meet the demand. Exports are up 447 5873 the last five years; America is once again the world's leading exporter. What does that mean right here? I'll bring it closer to home. In Missouri, exports are up 37 percent over the last three years -- $4.5 billion worth of goods shipped to 166 countries on every continent. Impressive numbers, but when you get behind the abstractions of export figures and trade statistics, you find the real benefit of the new world economy -- in a word, it's jobs. Here in Missouri, 100,000 jobs are supported by foreign trade. Across the country, more than 7 million Americans are employed for the same reason. That's the way the world works these days. It's a world where products can be shipped at the speed of sound and investment money can cross borders at the speed of light. 4 Everyone recognizes that the world is moving at a faster pace than ever, but I see something more: it's moving our way. Right now we're building on the export success of the last three years. Two weeks ago we entered a new era of open trade. Along with Mexico and Canada, we initialed the North American Free Trade Agreement, with the goal of creating one of the largest free-trade areas in the world -- an integrated economy worth more than $6 trillion dollars. Here in Missouri, you already export $2 billion worth of goods to Mexico and Canada. That's a lot of paychecks, but our new agreement will make that success look like kid's stuff. NAFTA is a solid agreement -- when you've been in as many tough negotiations as I have, you learn to tell the difference. It will protect the environment, and more important, it will protect American workers. And more: it will create new jobs for this generation and the next -- especially the kind of high- tech, high-wage jobs we'll be proud to pass on to our children. We're going to take this case to the liberal Democrats on Capitol Hill, because they need to hear it. A free-trade agreement isn't a way of dividing up the economic pie, where one side's loss is another side's gain; it's a way of making the pie bigger for everyone who participates. The liberals don't seem to get it. Right now, in fact, before our initials are even dry on the agreement, the liberals in Congress -- led by somebody who might be familiar to you, 5 Congressman Dick Gephardt -- are calling for us to slap a tarriff on any new trade that comes from NAFTA. Think about that for a minute -- ((which is a minute longer than they've thought about it)) After years of tough negotiations with our two closest trading partners, we've agreed to end tariffs. The congressional Democrats say: Okay, fine. But first you have to put on a new tariff. In other words, the only way they'll agree to reduce tariffs is if they can raise tariffs. That's like telling us they want us to hit a homerun, but please don't hit it out of the park because we don't want to lose the ball. This "transaction tax," as they call it, will increase the cost of goods you want to buy, and discourage the creation of new jobs for you and your neighbors. It turns the agreement on its head -- defeats the whole purpose. Now, I suppose I could ask my opponent to help me out with his liberal Democrat colleagues on Capitol Hill. Governor Clinton says he's for free trade "in principle." But "in practice" may be a different story. Actually, it's not clear where the governor stands. Last year, Mr. Clinton called a free-trade pact with Mexico "imperative." Then this April, the Washinton Post reported that the protectionists were "breathing easier" because he endorsed their trade position. Then in July, he said he was "applauding Majority Leader Gephardt's efforts." 6 This week, maybe the governor delivered his final word on the subject. He said he was studying our agreement. Then he said: "When I have a definitive opinion, I'll say so." The way Governor Clinton wiggles on free trade, I'm not surprised he compares himself to Elvis. No matter how much Governor Clinton would like to fudge the issue, the difference couldn't be clearer -- and the difference is based on two very different views of America's future. My opponents see trade barriers falling and they say: Hold everything. They see new markets for American goods and they say: Wait a minute. We can't compete. The American worker can't cut it. So let's pull down the blinds, lock the doors and hope the world goes away. Well, let me tell them something you already know. The American worker doesn't have to hide from anybody. We have the most productive workforce in the world. Americans can outwork, out-think, out-compete anybody, anywhere, anytime. That's something everyone in the world seems to understand - - everyone but the protectionist Democrats. Over the last decade, we've seen a flood of foreign investment in the United States, with businesses from all over the world setting up shop from Portland, Oregon to Portland, Maine. These investors are following a simple logic: if you want the best science and universities in the world, if you want the best workers in the world, you have to come to the U.S.A. 7 Now, this investment makes some people uneasy. I understand that -- particularly when the other side tries to stir up fear and resentment against foreign capital. I was in Utah not long ago, and a very articulate woman confronted me on the issue. I told her we probably couldn't see eye to eye on it, but I tried to tell her why I felt so strongly against the isolationism that would keep foreign investment out of America. There was an irony in her timing. I had just returned from meeting with the heads of the industrialized countries in Munich, and while I was there I was pleased to team up with Governor Carroll of South Carolina and the head of BMW to announce a new BMW plant in South Carolina. That means 10,000 jobs to the people of that state. Now, I don't think the 10,000 South Carolinians who get those jobs are going to argue against foreign investment. One out of every ten manufacturing workers in the United States works for a company supported by foreign investment. That's the bottom line on foreign investment in the U.S.: jobs -- jobs for Americans, and growth for the American economy. That's the way the world works in a global economy. Again, Governor Clinton just doesn't seem to understand. But he's not wiggling on the issue of foreign investment -- not at all. He's surveyed the issue and come out foresquare for -- you guessed it -- a tax increase. 8 He's proposed to increase taxes on foreign investment in the United States, each one of those companies that employ a total of 4 and one-half million Americans. Governor Clinton says his new tax will raise $45 billion. He might want to talk to his own Democrats on Capitol Hill. The Joint Committee on Taxation says that estimate is about 45 times too high. Governor Clinton says his tax increase will "crack down" on foreign companies, but all it will really do is drive them out. And if they go, they'll take those jobs with them. Travel around this state. Go to New Madrid (MA-drid), talk to the 1200 employees at Noranda Aluminum -- or to Joplin, talk to the 425 employees of Atlas Powder. Go to any of the 244 foreign-owned companies that employ 60,000 workers right here in Missour. If Governor Clinton's tax hike had been in effect these past few years, few if any of those companies would have located in the United States -- few if any of those jobs would have been created for Missourians. And it's not just Missouri. Whether it's the Nissan plant in XX Tennessee -- whether it's the XX plant in xx, XX -- Governor Clinton's tax increase would be felt in every region of every state of this country. Governor Clinton forgets something about international relations. If he raises this tax, our foreign competitors are going to say: "What's good for the goose is good for the gander." 9 His tax is like a gilded invitation sent to foreign governments where U.S. companies also do business. And the invititation reads: "Please retaliate." The result would be not just a reduction in investment here, but a contraction worldwide. There was another occasion when that happened. It was in 1930. Right before the great depression. No other major industrial nation has the kind of tax Governor Clinton proposes -- not Germany, not Japan. But I can tell you one nation that does tax foreign investment as he would like: India. Well, here's a promise I am proud to make: As long as I am president, India will not be a model for how to conduct economic policy in the United States of America. So let's review the facts about Governor Clinton's tax: It won't raise revenue. It won't create a single job. It will discourage investment. And it threatens to start a trade war at the very moment when markets the world over are opening up to American products. We should ask why, given all this, Governor Clinton would ever propose such a tax in the first place. I can tell you why. Today change is accelerating, and change breeds uneasiness, skepticism, even fear. And by disparaging foreign investment, Governor Clinton hopes to exploit the darker fears of this uncertain age -- fear of the future, fear of the unknown, fear of foreigners. 10 Well, let me tell Governor Clinton something: You can play politics with, but those are American jobs you're playing politics with. Those are American workers you're putting at risk. The American people won't buy it. We're bigger than that. The proudest people on earth have never stooped to fearmongers before, and we're not going to start now. In talking about America's future in the global economy, I mentioned my own experience, because I want you to understand why I believe what I do about America's ability to compete. Governor Clinton takes a different view, and it is borne of his life experience -- a life spent in government. You see the difference on issue after issue. I understand that you boost the economy by cutting taxes. I understand that you cut the deficit by cutting spending. I understand that you open markets by tearing down barriers -- by sitting down at the table and hammering out a tough and fair agreement. So the American people have a clear choice this year. It's a choice between the patrons of the past and the architects of the future. I believe we can shape what lies ahead -- not by turning away from challenges but by doing what you here at PSE have done. You didn't shrink from challenge, you embraced it. You didn't shrink from competition, you met it head on. You didn't retreat from foreign markets, you conquered them. I have faith in America's future -- because I have faith in the American people. It's the same faith that brought me out to 11 Texas more than 40 years ago -- the same faith that brought me into public life -- the same faith that has led me to fight for open markets -- because I know that no challenge is too great for the American heart. Thank you and God bless you. # # action. K, CC:DFB, PWT JOF Document No. 346876ss WHITE HOUSE STAFFING MEMORANDUM DATE: 08/25/92 DUE BY: 10:00 a.m. 08/26 SUBJECT: PRESIDENTIAL REMARKS: PUBLIC SAFETY EQUIPMENT, INC., ST. LOUIS, MO- 08/27/92 ACTION FYI ACTION FYI VICE PRESIDENT MOORE BAKER MULLINS SCOWCROFT PETERSMEYER DARMAN PORTER BRADY PROVOST BROMLEY ROSS CALIO SMITH DEMAREST TUTWILER FITZWATER ZOELLICK GRAY KAUFMAN HOLIDAY MCGROARTY HORNER BOSKIN MCBRIDE / REMARKS: Please provide any comments directly to Dan McGroarty, Rm. 122, X 2930, no later than 10:00 a.m. on Wednesday, 08/26, with a copy to this office. Thanks. RESPONSE: Camments PHILLIP D. BRADY Assistant to the President P.3 and Staff Secretary KC fung Ext. 2702 (Ferguson/Walters) August 25, 1992 6:40 p.m. 2 AUG 25 P6: 43 STLOUIS PRESIDENTIAL REMARKS: PUBLIC SAFETY EQUIPMENT, INC. ST. LOUIS, MISSOURI AUGUST 27, 1992 9:00 A.M. (??) Thank you and good morning. (Acknowledgments, humor) Together we have seen a world transformed these past three and a half years -- a world made new by American strength and resolve. But now that the Cold War is over, the defining challenge of the '90s is to win the economic competition of the new global economy -- to win the peace. Our goal is simple and profound: We must be a military superpower, an economic superpower and an export superpower. In this election, you'll hear two versions of how to do this. My opponents' answer is to look inward, and protect what we already have from the challenges of this new world. My approach is to look forward -- to open new markets, prepare our people to compete, to restore our social fabric -- to save and invest, so that we can win. Twenty five years ago, where you're standing was a patch of bleak, undeveloped real estate. Now look around -- because of your dreams and hard-work, that patch of ground is a bustling factory, creating light bars and sirens that help save lives and keep the peace from Manila to Santiago. 2 There was a time when companies like PSE could be satisfied with a national market -- sell your goods in the fifty states and leave it at that. But you here at PSE know that's no longer good enough. So five years ago, you took on the world. I'm told that now 35 percent of what you build right here is sold outside our borders, in 66 different countries. That bold, forward-looking strategy has helped you weather the uncertainties of the past few years. PSE's story is a parable for our entire country's economic future -- never settling for less, always pushing ahead, embracing the challenges of foreign competition and reshaping them as opportunities. Let me offer a personal note -- tell you how I learned about competing in the world. I spent a good part of my life out in West Texas, in the oil business. I painted rigs for a while, even lived out of a suitcase as a traveling salesman. And all around me in those days -- the fifties and early sixties -- I saw towns and businesses bloom from those dusty plains like desert flowers. Why? The reason was simple: The world wanted what Texas had to offer -- cotton and cattle and crude. We understood that the more goods we sold outside our borders, the more jobs we could create within them. Later on, when I started my own business, I learned again: we had to take a global view to compete. I shopped for investors on the west coast, on the east coast, but I couldn't stop there. 3 I traveled the world -- to Europe and the Far East. Every dollar we could bring into this country was a dollar that went to expand our company, create jobs in our community. I've seen it over and over again: as U.N. ambassador, envoy to China, and now as president. You learn how important America is to the world, but you also learn how important the world is to America --- not just for national security, not just for military preparedness, but for creating jobs, right here at home. figures US We've held steady to this vision for three years now, and more than with great success. As we knock down trade barriers, American 60 companies are rushing to meet the demand. Exports are up XXX in ] Percent the last five years; America is once again the world's leading source: Economic exporter. Indicators What does that mean right here? I'll bring it closer to July 92 home. In Missouri, exports are up 37 39 percent over the last three two 3.4 billion years -- $4.5 billion worth of goods shipped to 166 countries on every continent. Source Census Bureau / Department of Commerce FT-900 Supplement Impressive numbers, but when you get behind the abstractions of export figures and trade statistics, you find the real benefit of the new world economy -- in a word, it's jobs. Here in more them 65,000 Missouri, 100,000 jobs are supported by foreign trade. Across the country, more than 7 million Americans are employed for the same reason. That's the way the world works these days. It's a world where products can be shipped at the speed of sound and investment money can cross borders at the speed of light. 4 Everyone recognizes that the world is moving at a faster pace than ever, but I see something more: it's moving our way. Right now we're building on the export success of the last three years. Two weeks ago we entered a new era of open trade. Along with Mexico and Canada, we initialed the North American Free Trade Agreement, with the goal of creating one of the largest free-trade areas in the world -- an integrated economy worth more than $6 trillion dollars. Here in Missouri, you already export $2 billion worth of goods to Mexico and Canada. That's a lot of paychecks, but our new agreement will make that success look like kid's stuff. NAFTA is a solid agreement -- when you've been in as many tough negotiations as I have, you learn to tell the difference. It will protect the environment, and more important, it will protect American workers. And more: it will create new jobs for this generation and the next -- especially the kind of high- tech, high-wage jobs we'll be proud to pass on to our children. We're going to take this case to the liberal Democrats on Capitol Hill, because they need to hear it. A free-trade agreement isn't a way of dividing up the economic pie, where one side's loss is another side's gain; it's a way of making the pie bigger for everyone who participates. The liberals don't seem to get it. Right now, in fact, before our initials are even dry on the agreement, the liberals in Congress -- led by somebody who might be familiar to you, 5 Congressman Dick Gephardt -- are calling for us to slap a tarriff on any new trade that comes from NAFTA. Think about that for a minute -- ((which is a minute longer than they've thought about it)). After years of tough negotiations with our two closest trading partners, we've agreed to end tariffs. The congressional Democrats say: Okay, fine. But first you have to put on a new tariff. In other words, the only way they'll agree to reduce tariffs is if they can raise tariffs. That's like telling us they want us to hit a homerun, but please don't hit it out of the park because we don't want to lose the ball. This "transaction tax," as they call it, will increase the cost of goods you want to buy, and discourage the creation of new jobs for you and your neighbors. It turns the agreement on its head -- defeats the whole purpose. Now, I suppose I could ask my opponent to help me out with his liberal Democrat colleagues on Capitol Hill. Governor Clinton says he's for free trade "in principle." But "in practice" may be a different story. Actually, it's not clear where the governor stands. Last year, Mr. Clinton called a free-trade pact with Mexico "imperative." Then this April, the Washinton Post reported that the protectionists were "breathing easier" because he endorsed their trade position. Then in July, he said he was "applauding Majority Leader Gephardt's efforts." 6 This week, maybe the governor delivered his final word on the subject. He said he was studying our agreement. Then he said: "When I have a definitive opinion, I'll say so." The way Governor Clinton wiggles on free trade, I'm not surprised he compares himself to Elvis. No matter how much Governor Clinton would like to fudge the issue, the difference couldn't be clearer -- and the difference is based on two very different views of America's future. My opponents see trade barriers falling and they say: Hold everything. They see new markets for American goods and they say: Wait a minute. We can't compete. The American worker can't cut it. So let's pull down the blinds, lock the doors and hope the world goes away. Well, let me tell them something you already know. The American worker doesn't have to hide from anybody. We have the most productive workforce in the world. Americans can outwork, out-think, out-compete anybody, anywhere, anytime. That's something everyone in the world seems to understand - - everyone but the protectionist Democrats. Over the last decade, we've seen a flood of foreign investment in the United States, with businesses from all over the world setting up shop from Portland, Oregon to Portland, Maine. These investors are following a simple logic: if you want the best science and universities in the world, if you want the best workers in the world, you have to come to the U.S.A. 7 Now, this investment makes some people uneasy. I understand that -- particularly when the other side tries to stir up fear and resentment against foreign capital. I was in Utah not long ago, and a very articulate woman confronted me on the issue. I told her we probably couldn't see eye to eye on it, but I tried to tell her why I felt so strongly against the isolationism that would keep foreign investment out of America. There was an irony in her timing. I had just returned from meeting with the heads of the industrialized countries in Munich, and while I was there I was pleased to team up with Governor Carroll of South Carolina and the head of BMW to announce a new BMW plant in South Carolina. That means 10,000 jobs to the people of that state. Now, I don't think the 10,000 South Carolinians who get those jobs are going to argue against foreign investment. One out of every ten manufacturing workers in the United States works for a company supported by foreign investment. That's the bottom line on foreign investment in the U.S.: jobs -- jobs for Americans, and growth for the American economy. That's the way the world works in a global economy. Again, Governor Clinton just doesn't seem to understand. But he's not wiggling on the issue of foreign investment -- not at all. He's surveyed the issue and come out foresquare for -- you guessed it -- a tax increase. 8 He's proposed to increase taxes on foreign investment in the United States, each one of those companies that employ a total of 4 and one-half million Americans. Governor Clinton says his new tax will raise $45 billion. He might want to talk to his own Democrats on Capitol Hill. The Joint Committee on Taxation says that estimate is about 45 times too high. Governor Clinton says his tax increase will "crack down" on foreign companies, but all it will really do is drive them out. And if they go, they'll take those jobs with them. Travel around this state. Go to New Madrid (MA-drid), talk to the 1200 employees at Noranda Aluminum -- or to Joplin, talk to the 425 employees of Atlas Powder. Go to any of the 244 foreign-owned companies that employ 60,000 workers right here in Missour. If Governor Clinton's tax hike had been in effect these past few years, few if any of those companies would have located in the United States -- few if any of those jobs would have been created for Missourians. And it's not just Missouri. Whether it's the Nissan plant in XX Tennessee -- whether it's the XX plant in xx, XX -- Governor Clinton's tax increase would be felt in every region of every state of this country. Governor Clinton forgets something about international relations. If he raises this tax, our foreign competitors are going to say: "What's good for the goose is good for the gander." 9 His tax is like a gilded invitation sent to foreign governments where U.S. companies also do business. And the invititation reads: "Please retaliate." The result would be not just a reduction in investment here, but a contraction worldwide. There was another occasion when that happened. It was in 1930. Right before the great depression. No other major industrial nation has the kind of tax Governor Clinton proposes -- not Germany, not Japan. But I can tell you one nation that does tax foreign investment as he would like: India. Well, here's a promise I am proud to make: As long as I am president, India will not be a model for how to conduct economic policy in the United States of America. So let's review the facts about Governor Clinton's tax: It won't raise revenue. It won't create a single job. It will discourage investment. And it threatens to start a trade war at the very moment when markets the world over are opening up to American products. We should ask why, given all this, Governor Clinton would ever propose such a tax in the first place. I can tell you why. Today change is accelerating, and change breeds uneasiness, skepticism, even fear. And by disparaging foreign investment, Governor Clinton hopes to exploit the darker fears of this uncertain age -- fear of the future, fear of the unknown, fear of foreigners. 10 Well, let me tell Governor Clinton something: You can play politics with, but those are American jobs you're playing politics with. Those are American workers you're putting at risk. The American people won't buy it. We're bigger than that. The proudest people on earth have never stooped to fearmongers before, and we're not going to start now. In talking about America's future in the global economy, I mentioned my own experience, because I want you to understand why I believe what I do about America's ability to compete. Governor Clinton takes a different view, and it is borne of his life experience -- a life spent in government. You see the difference on issue after issue. I understand that you boost the economy by cutting taxes. I understand that you cut the deficit by cutting spending. I understand that you open markets by tearing down barriers -- by sitting down at the table and hammering out a tough and fair agreement. So the American people have a clear choice this year. It's a choice between the patrons of the past and the architects of the future. I believe we can shape what lies ahead -- not by turning away from challenges but by doing what you here at PSE have done. You didn't shrink from challenge, you embraced it. You didn't shrink from competition, you met it head on. You didn't retreat from foreign markets, you conquered them. I have faith in America's future -- because I have faith in the American people. It's the same faith that brought me out to 11 Texas more than 40 years ago -- the same faith that brought me into public life -- the same faith that has led me to fight for open markets -- because I know that no challenge is too great for the American heart. Thank you and God bless you. # # THE WHITE HOUSE WASHINGTON August 26, P19923 92 AUG 26 MEMORANDUM FOR DAN McGROARTY FROM: ROGER B. PORTER RBP SUBJECT: Presidential Remarks: Public Safety Equipment We have reviewed the attached remarks and have noted a few suggested changes on the draft. Please let us know if you have any questions or if we may help in any other way. CC: Phillip D. Brady Document No. 346876ss WHITE HOUSE STAFFING MEMORANDUM DATE: 08/25/92 ACTION/CONCURRENCE/COMMENT DUE BY: 10:00 a.m. 08/26 SUBJECT: PRESIDENTIAL REMARKS: PUBLIC SAFETY EQUIPMENT, INC., ST. LOUIS, MO- 08/27/92 ACTION FYI ACTION FYI VICE PRESIDENT MOORE BAKER MULLINS SCOWCROFT PETERSMEYER DARMAN PORTER BRADY PROVOST BROMLEY ROSS CALIO SMITH DEMAREST TUTWILER FITZWATER ZOELLICK GRAY KAUFMAN HOLIDAY MCGROARTY HORNER BOSKIN MCBRIDE REMARKS: Please provide any comments directly to Dan McGroarty, Rm. 122, x 2930, no later than 10:00 a.m. on Wednesday, 08/26, with a copy to this office. Thanks. RESPONSE: PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 (Ferguson/Walters) August 25, 1992 6:40 p.m. P6: 43 STLOUIS PRESIDENTIAL REMARKS: PUBLIC SAFETY EQUIPMENT, INC. ST. LOUIS, MISSOURI AUGUST 27, 1992 9:00 A.M. (??) Thank you and good morning. (Acknowledgments, humor) Together we have seen a world transformed these past three and a half years -- a world made new by American strength and X resolve. But I now that the Cold War is over, the defining challenge of the '90s is to win the economic competition of the new global economy -- to win the peace. Our goal is simple and profound: We must be a military WORLD TRADE superpower, an economic superpower and an export superpower. X ADVANCE In this election, you'll hear two versions of how to do X AMERICA'S INTERESTS. this. My opponents' answer is to look inward, and protect what we already have from the challenges of this new world. My TO approach is to look forward -- to open new markets, Vprepare our PROMOTE X people to compete, to restore our social fabric -- to Vsave INE and X MENT ACAIN invest, so that we can win). THE GROUND WE'RE ON Twenty five years ago, where you're standing Vwas a patch of X bleak, undeveloped real estate. Now look around -- because of your dreams and hard-work, that patch of ground is a bustling factory, creating light bars and sirens that help save lives and .~ keep the peace from Manila to Santiago. 2 There was a time when companies like PSE could be satisfied with a national market -- sell your goods in the fifty states and leave it at that. X But you here at PSE know that's no longer good enough. So BEBAN TO TAKE ADVANTABE OF THE OPPORTUNITIES CREATED By OPEN five years ago, you took on the world. I'm told that now 35 Now percent of what you build right here is Vsold outside our borders, in 66 different countries. That bold, forward-looking strategy has helped you weather the uncertainties of the past few years. NATION'S INTERNATIONAL MARKETS. PSE's story is a parable for our entire country's economic future -- never settling for less, always pushing ahead, embracing the challenges of foreign competition and reshaping them as opportunities. Let me offer a personal note -- tell you how I learned about competing in the world. I spent a good part of my life out in West Texas, in the oil business. I painted rigs for a while, even lived out of a suitcase as a traveling salesman. And all around me in those days -- the fifties and early sixties -- I saw towns and businesses bloom from those dusty plains like desert flowers. Why? The reason was simple: The world wanted what Texas X had to offer -- cotton and cattle and crude. We understood that the more goods we sold outside our borders, the more jobs we could create within them. Later on, when I started my own business, I learned again: we had to take a global view to compete. I shopped for investors on the west coast, on the east coast, but I couldn't stop there. 3 I traveled the world -- to Europe and the Far East. Every dollar we could bring into this country was a dollar that went to expand AND our company, Y create jobs in our community. I've seen it over and over again: as U.N. ambassador, envoy to China, and now as president. You learn how important America is to the world, but you also learn how important the world is to America -- not just for national security, not just for military preparedness, but for creating jobs, right here at home. We've held steady to this vision for three years now, and with great success. As we knock down trade barriers, American INCREASED companies are rushing to meet they demand. Exports are up XXX in the last five years; America is once again the world's leading exporter. What does that mean right here? I'll bring it closer to home. In Missouri, exports are up 37 percent over the last three years -- $4.5 billion worth of goods shipped to 166 countries on every continent. Impressive numbers, but when you get behind the abstractions of export figures and trade statistics, you find the real benefit of the new world economy -- in a word, it's jobs. Here in Missouri, 100,000 jobs are supported by foreign trade. Across the country, more than 7 million Americans are employed for the same reason. That's the way the world works these days. It's a world where products can be shipped at the speed of sound and BE TRANSFERRED investment money can cross borders at the speed of light. 4 Everyone recognizes that the world is moving at a faster pace than ever, but I see something more: it's moving our way. Right now we're building on the export success of the last three years. Two weeks ago we entered a new era of open trade. Along with Mexico and Canada, we initialed the North American Free Trade Agreement, with the goal of creating one of the largest free-trade areas in the world -- an integrated economy worth more than $6 trillion dollars. Here in Missouri, you already export $2 billion worth of goods to Mexico and Canada. That's a lot of paychecks, but our new agreement will make that success look like kid's stuff. NAFTA is a solid agreement -- when you've been in as many tough negotiations as I have, you learn to tell the difference. It will protect the environment, and more important, it will protect American workers, And more: 7/2 create new jobs for this generation and the next especially the kind of high- tech, high-wage jobs we'll be proud to pass on to our children. We're going to take this case to the liberal Democrats on Capitol Hill, because they need to hear it. A free-trade agreement isn't a way of dividing up the economic pie, where one side's loss is another side's gain; it's a way of making the pie bigger for everyone who participates. The liberals don't seem to get it. Right now, in fact, before our initials are even dry on the agreement, the liberals in Congress -- led by somebody who might be familiar to you, 5 Congressman Dick Gephardt -- are calling for us to slap a tarriff on any new trade that comes from NAFTA. Think about that for a minute -- ((which is a minute longer than they've thought about it)). After years of tough negotiations with our two closest trading partners, we've agreed to end tariffs. The congressional Democrats say: Okay, fine. But first you have to put on a new tariff. In other words, the only way they'll agree to reduce tariffs is if they can raise tariffs. That's like telling us they want us to hit a homerun, but please don't hit it out of the park because we don't want to lose the ball. This "transaction tax," as they call it, will increase the cost of goods you want to buy, and discourage the creation of new jobs for you and your neighbors. It turns the agreement on its head -- defeats the whole purpose. Now, I suppose I could ask my opponent to help me out with his liberal Democrat colleagues on Capitol Hill. Governor Clinton says he's for free trade "in principle." But "in practice" may be a different story. Actually, it's not clear where the governor stands. Last year, Mr. Clinton called a free-trade pact with Mexico "imperative." Then this April, the Washinton Post reported that the protectionists were "breathing easier" because he endorsed their trade position. Then in July, he said he was "applauding Majority Leader Gephardt's efforts." 6 This week, maybe the governor delivered his final word on the subject. He said he was studying our agreement. Then he said: "When I have a definitive opinion, I'll say so." The way Governor Clinton wiggles on free trade, I'm not surprised he compares himself to Elvis. No matter how much Governor Clinton would like to fudge the issue, the difference couldn't be clearer -- and the difference is based on two very different views of America's future. My opponents see trade barriers falling and they say: Hold everything. They see new markets for American goods and they say: Wait a minute. We can't compete. The American worker can't cut it. So let's pull down the blinds, lock the doors and hope the world goes away. AMERICANS Well, let me tell them something you already know. The American worker doesn't have to hide from anybody. We have the most productive workforce in the world. Americans can outwork, out-think, out-compete anybody, anywhere, anytime. That's something everyone in the world seems to understand - - everyone but the protectionist Democrats. Over the last decade, we've seen a flood of foreign investment in the United States, with businesses from all over the world setting up shop from Portland, Oregon to Portland, Maine. These investors are following a simple logic: if you want the best science and universities in the world, if you want the best workers in the world, you have to come to the U.S.A. 7 Now, this investment makes some people uneasy. I understand that -- particularly when the other side tries to stir up fear and resentment against foreign capital. I was in Utah not long ago, and a very articulate woman confronted me on the issue. I told her we probably couldn't see eye to eye on it, but I tried FEEL to tell her why I felt so strongly against the isolationism that would keep foreign investment out of America. There was an irony in her timing. I had just returned from meeting with the heads of the industrialized countries in Munich, and while I was there I was pleased to team up with Governor CAMPBELL Carroll Vof South Carolina and the head of BMW to announce a new WILL CREATE FOR BMW plant in South Carolina. That means 10,000 jobs to the people of that state. Now, I don't think the 10,000 South Carolinians who get those jobs are going to argue against foreign investment. One out of every ten manufacturing workers in the United States works for a company supported by foreign investment. That the bottom IS IT CREATES line on foreign investment in the U.S. IV jobs. jobs for X Americans, and growth for the American economy. That's the way the world works in a global economy. Again, Governor Clinton just doesn't seem to understand. But he's not wiggling on the issue of foreign investment -- not at all. He's surveyed the issue and come out foresquare for -- you guessed it -- a tax increase. 8 He's proposed to increase taxes on foreign investment in the United States, each one of those companies that employ a total of 4 and one-half million Americans. Governor Clinton says his new tax will raise $45 billion. He might want to talk to his own Democrats on Capitol Hill. The Joint Committee on Taxation says that estimate is about 45 times too high. Governor Clinton says his tax increase will "crack down" on foreign companies, but all it will really do is drive them out. And if they go, they'll take those jobs with them. Travel around this state. Go to New Madrid (MA-drid), talk to the 1200 employees at Noranda Aluminum -- or to Joplin, talk ? POWER OR POWDER to the 425 employees of Atlas Powder. Go to any of the 244 foreign-owned companies that employ 60,000 workers right here in Missour. If Governor Clinton's tax hike had been in effect these past few years, few if any of those companies would have located in the United States -- few if any of those jobs would have been created for Missourians. And it's not just Missouri. Whether it's the Nissan plant in XX Tennessee -- whether it's the XX plant in xx, XX -- Governor Clinton's tax increase would be felt in every region of every state of this country. Governor Clinton forgets something about international relations. If he raises this tax, our foreign competitors are going to say: "What's good for the goose is good for the gander." 9 His tax is like a gilded invitation sent to foreign governments where U.S. companies also do business. And the invititation reads: "Please retaliate." The result would be not just a reduction in investment here, but a contraction worldwide. There was another occasion when that happened. It was in 1930. Right before the great depression. No other major industrial nation has the kind of tax Governor Clinton proposes -- not Germany, not Japan. But I can tell you one nation that does tax foreign investment as he would like: India. Well, here's a promise I am proud to make: As long as I am president, India will not be a model for how to conduct economic policy in the United States of America. So let's review the facts about Governor Clinton's tax: It won't raise revenue. It won't create a single job. It will discourage investment. And it threatens to start a trade war at the very moment when markets the world over are opening up to American products. We should ask why, given all this, Governor Clinton would ever propose such a tax in the first place. I can tell you why. Today change is accelerating, and change breeds uneasiness, skepticism, even fear. And by disparaging foreign investment, Governor Clinton hopes to exploit the darker fears of this uncertain age -- fear of the future, fear of the unknown, fear of COMPETITION foreigners. 10 STOP Well, let me tell Governor Clinton something: You can play/NG ING politics with, I but I those are American jobs you're playing politics with, Those are I American workers you're putting at AND risk. The American people won't buy it. We're bigger than that. The proudest people on earth have never stooped to fearmongers before, and we're not going to start now. In talking about America's future in the global economy, I mentioned my own experience, because I want you to understand why x IN AND THE IMPORTANCE of MEETING I believe what I do about America's ability to competel. Governor Clinton takes a different view, and it is borne of his life DRAWING A PAYCHECKO experience -- a life spent in governmentV You see the difference on issue after issue. I understand that you boost the economy by cutting taxes. I understand that you cut the deficit by cutting spending. I understand that you open markets by tearing down barriers -- by sitting down at the table and hammering out a tough and fair agreement. So the American people have a clear choice this year. It's a choice between the patrons of the past and the architects of HEAD-ON THE CHALLENGES WE FACE AS A NATION the future. I believe we can shape what lies ahead -- not by turning away from challenges but by doing what you here at PSE have done. You didn't shrink from challenge, you embraced it. You didn't shrink from competition, you met it head on. You didn't retreat from foreign markets, you conquered them. I have faith in America's future -- because I have faith in the American people. It's the same faith that brought me out to 11 Texas more than 40 years ago -- the same faith that brought me into public life -- the same faith that has led me to fight for open markets -- because I know that no challenge is too great for the American heart. Thank you and God bless you. # # SENT BY:Xerox Telecopier 7020 ; 8-26-92 ; 6:53 ; The White House- OPD:# 1 Also: J.D. Foster Rm.320 Document No. 346876ss WHITE 97 HOUSE STAFFING MEMORANDUM AUG 26 26 P12: 58 DATE: 08/25/92 ACTION/CONCURRENCE/COMMENT DUE BY: 10:00 a.m. 08/26 SUBJECT: PRESIDENTIAL REMARKS: PUBLIC SAFETY EQUIPMENT, INC., ST. LOUIS, MO- 08/27/92 ACTION FYI ACTION FYI VICE PRESIDENT MOORE BAKER MULLINS SCOWCROFT PETERSMEYER DARMAN PORTER BRADY PROVOST BROMLEY ROSS CALIO SMITH DEMAREST TUTWILER FITZWATER ZOELLICK GRAY KAUFMAN HOLIDAY MCGROARTY HORNER BOSKIN MCBRIDE REMARKS: Please provide any comments directly to Dan McGroarty, Rm. 122, X 2930, no later than 10:00 a.m. on Wednesday, 08/26, with a copy to this office. Thanks. RESPONSE: See comments. TO Paul Korfonta PHILLIP D. BRADY Pk 08/26 12 P95 Assistant to the President and Staff Secretary Ext. 2702 SENT BY:Xerox Telecopier 7020 ; 8-26-92 ; 6:54 ; The White House- OPD:# 2 (Ferguson/Walters) August 25, 1992 6:40 p.m. 25 P6: 43 STLOUIS PRESIDENTIAL REMARKS: PUBLIC SAFETY EQUIPMENT, INC. ST. LOUIS, MISSOURI AUGUST 27, 1992 9:00 A.M. (??) Thank you and good morning. (Acknowledgments, humor) Together we have seen a world transformed these past three and a half years -- a world made new by American strength and resolve. But now that the Cold War is over, the defining challenge of the '90s is to win the economic competition of the new global economy -- to win the peace. Our goal is simple and profound: We must be a military superpower. an economic superpower and an export superpower. In this election, you'll hear two versions of how to do this. My opponents' answer is to look inward, and protect what we already have from the challenges of this new world. My approach is to look forward -- to open new markets, prepare our people to compete, to restore our social fabric -- to save and invest, so that we can win. Twenty five years ago, where you're standing was a patch of bleak, undeveloped real estate. Now look around -- because of your dreams and hard-work, that patch of ground is a bustling factory, creating light bars and sirens that help save lives and keep the peace from Manila to Santiago. SENT BY:Xerox Telecopier 7020 ; 8-26-92 ; 6:54 ; The White House-> OPD;# 3 2 There was a time when companies like PSE could be satisfied with a national market -- sell your goods in the fifty states and leave it at that. But you here at PSE know that's no longer good enough. So five years ago, you took on the world. I'm told that now 35 percent of what you build right here is sold outside our borders, in 66 different countries. That bold, forward-looking strategy has helped you weather the uncertainties of the past few years. PSE's story is a parable for our entire country's economic future -- never settling for less, always pushing ahead, embracing the challenges of foreign competition and reshaping them as opportunities. Let me offer a personal note -- tell you how I learned about competing in the world. I spent a good part of my life out in West Texas, in the oil business. I painted rigs for a while, even lived out of a suitcase as a traveling salesman. And all around me in those days -- the fifties and early sixties -- I saw towns and businesses bloom from those dusty plains like desert flowers. Why? The reason was simple: The world wanted what Texas had to offer -- cotton and cattle and crude. We understood that the more goods we sold outside our borders, the more jobs we could create within them. Later on, when I started my own business, I learned again: we had to take a global view to compete. I shopped for investors on the west coast, on the east coast, but I couldn't stop there. SENT BY:Xerox Telecopier 7020 ; 8-26-92 ; 6:55 ; The White House-> OPD;# 4 3 I traveled the world -- to Europe and the Far East. Every dollar exports based we could bring into this country was a dollar that went to expand economy dollar our company, create jobs in our community. I've seen it over and over again: as U.N. ambassador, envoy to China, and now as president. You learn how important America (USTR) is to the world, but you also learn how important the world is to America -- not just for national security, not just for military to mevch. preparedness, but for creating jobs, right here at home. disagree 45TR Doce 04 6790 goods goods ses We've held steady to this vision for three years now, and numbers on with great success. As we knock down trade barriers, American 86 companies are rushing to meet the demand. Exports are up in '86-91 the last five years; America is once again the world's leading based on you this exporter. What does that mean right here? I'll bring it closer to (DOC) home. In Missouri, exports are up 37 percent over the last three 3.8 151 accurate may dollars or intla infletad not tien be include years -- SMA billion worth of goods shipped to 166 countries on every continent. Impressive numbers, but when you get behind the abstractions of export figures and trade statistics, you find the real benefit of the new world economy -- in a word, it's jobs. Here in 150,000 exports. (USTR) Missouri, 600,000 jobs are supported by foreign trade. Across the country, more than 7 million Americans are employed for the same reason. That's the way the world works these days. It's a world where products can be shipped at the speed of sound and investment money can cross borders at the speed of light. SENT BY:Xerox Telecopier 7020 ; 8-26-92 ; 6:55 ; The White House- OPD;# 5 4 Everyone recognizes that the world is moving at a faster pace than ever, but I see something more: it's moving our way. Right now we're building on the export success of the last three years. Two weeks ago we entered concluded a new era of open trade. Along with Mexico and Canada, we initialed the North American Free Trade Agreement, with the goal of creating one of the largest (USTR) market free-trade areas in the world -- an integrated economy (worth more than $6 trillion dollars. Here in Missouri, you already export $2 billion worth of (USTR) and those exports support 78,000 jobs. goods to Mexico and Canada. That's a lot of paychecks, but our WHETH new agreement will make that success look like kid's stuff. NAFTA is a solid agreement -- when you've been in as many tough negotiations as I have, you learn to tell the difference. It will protect the environment, and more important, on (USTR) protect American workers' And more: it will create new jobs for this generation and the next -- especially the kind of high- tech, high-wage jobs we'll be proud to pass on to our children. should add We're going to take this case to the liberal Democrats on export- related Capitol Hill, because they need to hear it. A free-trade jobs are agreement isn't a way of dividing up the economic pie, where one higher side's loss is another side's gain; it's a way of making the pie paying jobs bigger for everyone who participates. The liberals don't seem to get it. Right now, in fact, before our initials are even dry on the agreement, the liberals in Congress -- led by somebody who might be familiar to you, Hasa of initialed been SENT BY:Xerox Telecopier 7020 ; 8-26-92 ; 6:56 ; The White House- OPD;# 6 technically it a tariff 5 (Your call) may But ist o.k. ONSTR) tax Congressman Dick Gephardt -- are calling for us to slap a tarriff on any new trade that comes from NAFTA. Think about that for a minute -- ((which is a minute longer than they've thought about it)). After years of tough negotiations with our two closest trading partners, we've agreed to end tariffs. The congressional Democrats say: Okay, fine. tax. But first you have to put on a new tariff, In other words, the only way they'll agree to reduce tariffs taxes. is if they can raise That's like telling us they want us to hit a homerun, but please don't hit it out of the park because we don't want to lose the ball. This "transaction tax," as they call it, will increase the cost of goods you want to buy, and discourage the creation of new jobs for you and your neighbors. It turns the agreement on its head -- defeats the whole purpose. Now, I suppose I could ask my opponent to help me out with his liberal Democrat colleagues on Capitol Hill. Governor Clinton says he's for free trade "in principle." But "in practice" may be a different story. Actually, it's not clear where the governor stands. Last year, Mr. Clinton called a free-trade pact with Mexico "imperative." Then this April, the Washinton Post reported that the protectionists were "breathing easier" because he endorsed their trade position. Then in July, he said he was "applauding Majority Leader Gephardt's efforts." SENT BY:Xerox Telecopier 7020 ; 8-26-92 ; 6:56 ; The White House-> OPD;# 7 6 This week, maybe the governor delivered his final word on the subject. He said he was studying our agreement. Then he said: "When I have a definitive opinion, I'll say so." The way Governor Clinton wiggles on free trade, I'm not surprised he compares himself to Elvis. No matter how much Governor Clinton would like to fudge the issue, the difference couldn't be clearer -- and the difference is based on two very different views of America's future. My opponents see trade barriers falling and they say: Hold everything. They see new markets for American goods and they say: Wait a minute. We can't compete. The American worker can't cut it. so let's pull down the blinds, lock the doors and hope the world goes away. Well, let me tell them something you already know. The American worker doesn't have to hide from anybody. We have the most productive workforce in the world. Americans can outwork, out-think, out-compete anybody, anywhere. anytime. That's something everyone in the world seems to understand - - everyone but the protectionist Democrats. Over the last decade, we've seen a flood of foreign investment in the United States, with businesses from all over the world setting up shop from Portland, Oregon to Portland, Maine. These investors are following a simple logic: if you want the best science and universities in the world, if you want the best workers in the world, you have to come to the U.S.A. SENT BY:Xerox Telecopier 7020 ; 8-26-92 ; 6:57 ; The White House-> OPD;# 8 7 Now, this investment makes some people uneasy. I understand that -- particularly when the other side tries to stir up fear and resentment against foreign capital. I was in Utah not long ago, and a very articulate woman confronted me on the issue. I told her we probably couldn't see eye to eye on it, but I tried to tell her why I felt so strongly against the isolationism that would keep foreign investment out of America. There was an irony in her timing. I had just returned from meeting with the heads of the industrialized countries in Munich, and while I was there I was pleased to team up with Governor Carroll of South Carolina and the head of BMW to announce a new BMW plant in South Carolina. That means 10,000 jobs to the people of that state. Now, I don't think the 10,000 South Carolinians who get those jobs are going to argue against foreign investment. One out of every ten manufacturing workers in the United States works for a company supported by foreign investment. That's the bottom line on foreign investment in the U.S.: jobs -- jobs for Americans, and growth for the American economy. That's the way the world works in a global economy. Again, Governor Clinton just doesn't seem to understand. But he's not wiggling on the issue of foreign investment -- not at all. He's surveyed the issue and come out foresquare for -- you guessed it - a tax increase. SENT BY:Xerox Telecopier 7020 ; 8-26-92 ; 6:57 ; The White House- estimated received & similar proposal, which Theep review OPD;# 9 that G.C. sestimate was at least ten times too high. 8 He's proposed to increase taxes on foreign investment in the kymatring each of them pay for more than domestically anned compani United States, each one of those companies that employ a total of Could be open to 4 and one-half million Americans. criticism here Governor Clinton says his new tax will raise $45 billion. He might want to talk to his own Democrats on Capitol Hill. The may be at least accurate Joint Committee on Taxation says that estimate is about 45 times (Treas.) too high. They are estimating Rosten kouski proposal not - Clinton proposal. Governor Clinton says his tax puposel increase will "crack down" on foreign companies, but all it will really do is drive them out. And if they go, they'll take those jobs with them. Travel around this state. Go to New Madrid (MA-drid), talk to the 1200 employees at Noranda Aluminum -- or to Joplin, talk to the 425 employees of Atlas Powder. Go to any of the 244 foreign-owned companies that employ 60,000 workers right here in Missour. If Governor Clinton's tax hike had been in effect these past few years, few if any of those companies would have located in the United States -- few if any of those jobs would have been created for Missourians. (Tronny) And it's not just Missouri. Whether it's the Nissan plant in Smyrna XX Tennessee -- whether it's the XX plant in XX, XX -- Honda Merriville, Ohio Governor Clinton's tax increase would be felt in every region. of every state of this country. Governor Clinton forgets something about international relations. If he raises this tax, our foreign competitors are going to say: "What's good for the goose is good for the gander." SENT BY:Xerox Telecopier 7020 ; 8-26-92 ; 6:58 ; The White House- OPD;#10 9 His tax is like a gilded invitation sent to foreign governments where U.S. companies also do business. And the invititation reads: "Please retaliate." The result would be not just a reduction in investment here, but a contraction worldwide. There was another occasion when that happened. It was in 1930. Right before the great depression. No other major industrial nation has the kind of tax Governor Clinton proposes -- not Germany, not Japan. But I can (USTR) (Trasury) tell you one nation that does tax foreign investment as he would, India's current law may not tax Eureign investment be like: India. Well, here's a promise I am proud to make: As long as I am on this) They have been progressive as of late. (wit bench "w/you president, India will not be at model for how to conduct economic policy in the United States of America. make So let's review the facts about Governor Clinton's tax: It in fact it wa and gether euse won t raise revenue. It won't create a single job. It will discourage investment. And it threatens to start a trade war at U.S. re on lite set examp Germen x the very moment when markets the world over are opening up to American products. We should ask why, given all this, Governor Clinton would ever propose such a tax in the first place. I can tell you why. in Today change is accelerating, and change breeds uneasiness, skepticism, even fear. And by disparaging foreign investment, Governor Clinton hopes to exploit the darker fears of this uncertain age -- fear of the future, fear of the unknown, fear of foreigners. SENT BY:Xerox Telecopier 7020 ; 8-26-92 ; 6:58 ; The White House- OPD;#11 10 Well, let me tell Governor Clinton something: You can play politics with, but those are American jobs you're playing politics with. Those are American workers you're putting at risk. The American people won't buy it. We're bigger than that. The proudest people on earth have never stooped to fearmongers before, and we're not going to start now. In talking about America's future in the global economy, I mentioned my own experience, because I want you to understand why I believe what I do about America's ability to compete. Governor Clinton takes a different view, and it is borne of his life experience -- a life spent in government. You see the difference on issue after issue. I understand that you boost the economy by cutting taxes. I understand that you cut the deficit by cutting spending. I understand that you open markets by tearing down barriers -- by sitting down at the table and hammering out a tough and fair agreement. So the American people have a clear choice this year. It's a choice between the patrons of the past and the architects of the future. I believe we can shape what lies ahead -- not by turning away from challenges but by doing what you here at PSE have done. You didn't shrink from challenge, you embraced it. You didn't shrink from competition, you met it head on. You didn't retreat from foreign markets, you conquered them. I have faith in America's future -- because I have faith in the American people. It's the same faith that brought me out to SENT BY:Xerox Telecopier 7020 ; 8-26-92 ; 6:59 ; The White House-> OPD:#12 11 Texas more than 40 years ago -- the same faith that brought me into public life -- the same faith that has led me to fight for open markets -- because I know that no challenge is too great for the American heart. Thank you and God bless you. # fair shone & They should pay every dollar they are, and we've strengthened the IRS they pay it. 3 GC way beyond what is sensible Missouki Speech commerbs. Andy: RON KAUFMAN WOULD LIKE TO SEE US MENTION AN ARKANSAS PLANT THAT'S FOREIGN OWNED. IF WE FIND A GOOD ONE, THAT'S A GREAT IDEA HENSON MOORE WANTS US TO DO A RAPID-FIRE RUN THRU OF FOUR OR FIVE CLINTON TAXES IN THIS AND EVERY SPEECH Must please return to Speech life.