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Texas State Legislature 4/26/89 [OA 6263]
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26
18
7
6
Davis/Wallace
April 19, 11 a.m.
Title: Texas
Draft: Two
PRESIDENTIAL REMARKS: TEXAS STATE LEGISLATURE
CAPITOL, AUSTIN
APRIL 26, WED., TIME -- T.B.D.
((It's a good thing this isn't Bill Clement's birthday
From where I'm standing, another Plaid Day in the Texas
Legislature could blind a fella.) )
In all sincerity, happy belated birthday Bill
+
Lieutenant Governor Bill 1 Hobby, it's great to see you again.
X
X
Speaker Gib Lewis, distinguished legislators, fellow Texans,
thank you
I'm delighted to be back in Austin, with so many
friends
I will want to discuss a few issues facing Texas and all of
America. But before I do, let me say a few words about what it
means to me to be a Texan.
X
X
X
X
x
+
X
of
Like the former kingdom of Hawaii, Texas is a nation that
X
x
X
X
had to reconcile itself to being a state. But, like Hawaii, we
will never reconcile ourselves to being ordinary. From the Pecos
to the Pedernales, from the rapids of the Rio Grande to the broad
expanse of the muddy Red River, there is no place on earth like
Texas
2
Nor is there another capital in America quite like this one,
built of a rose-tinged granite that blushes in a low sun. And,
this being Texas, we had to build a capital that is exactly one
foot taller than the one in Washington. Texas certainly stands
tall, in the heart of this President
X
Perhaps for this reason, Larry McMurtry is one of my
favorite writers. In Lonesome Dove, he describes the mythic
Texas, and conjures that sense of place we all know so well. I
am inspired by a man of letters who can convincingly adopt the
voice of cowboys and outlaws -- men whose only schooling was in
dodging bullets, whose only lessons were in how to rustle cattle.
But, unlike Davy Crockett, I first set out for Texas not on
horseback from Tennessee, but from Yale in a rèd Studebaker.
More than forty years later, that trip is still a vivid memory --
the lonesome road, a neon Pearl Beer sign appearing in the desert
twilight like an apparition. Stopping at a cafe, I didn't know
if a chicken fried steak was a chicken fried like a steak, or a
steak that tasted like chicken
Still, Barbara and I settled in Texas, as did so many before
us. We raised five children, built a business. And in that span
of forty years, I watched this state grow into greatness. The
Texas of the epic movie Giant seemed almost ordinary in the
3
fifties, with bluejeaned millionaires as common as cactus in
Odessa and Midland. I'm no historian, but it has been noted that
the wealth of merchants preceded the Renaissance of Michelangelo.
In my lifetime I have seen the oil wealth of West Texas finance
the building of great cities, and the expansion of first-class
land grant colleges -- the origins of a Texas Renaissance, if you
will. The energy business helped make Texas what it is today --
the Third Coast of the United States
This Texas Renaissance lasted for years, even decades. But
you also know another more recent chapter of the Texas story --
oil cheaper than fancy mineral water, skylines of empty
buildings, expensive homes to be had for monthly payments, and
thousands of laid-off workers.
Now, I'm no cowboy. I pitch horseshoes, but I don't ride
broncos. But I understand that cowboys have a term for the most
dangerous and cunning bronco of all: They call it a "sunfisher."
These broncos will rebel against a rider by adopting a motion not
unlike the sunfish of the Gulf -- a full-force leap into the air,
back arched high, flank twisting the rider to the left, head and
upper torso twisting the rider to the right, in an attempt to
tear him apart. Let me suggest that in the 1980s, the whole
state of Texas feels like it has been on just such a ride
4
An old saying goes that there never was a horse that hasn't
been rode, and never was a man who hasn't been throwed. I guess
Texans have proven that. It is also said that strong men and
women are challenged by adversity. I believe Texans have proven
that, too
When a rider is thrown, he can do one of two things. He can
slink away and never again attempt another act of horsemanship.
Or, he can dust himself off, put one boot in the left stirrup,
throw the other boot over, and get firmly back into the saddle.
I won't kid you. There may be a few more bumps and bruises
ahead. But make no mistake, Texas is back in the saddle again.
+
+
+
of
State unemployment has dipped to its lowest level in four
years, signaling the diversification of the Texas economy. In
1970, the energy sector accounted for nearly 25 percent of state
f
output. Last year, it accounted for only 11.4 percent. And yet
Texas has more than regained the 208,000 jobs it lost from 1986
to 1987, with employment in plastics, aviation, electronics,
+
space and computer programming leading the way. The Dallas-Fort
Worth "Metroplex" leads in defense and aviation technology;
Houston in space and biomedical research; Austin, in
microelectronics
Another sign that Texas is becoming a world center of
technology is the selection of Ellis County as the site of the
6
Clements says, this "cannot be safely shunted aside as merely a
Texas or a producing state problem. "
Some are questioning the future of America's energy
production in the aftermath of the wreck of the Exxon Valdez off
Alaska. I am as concerned as you are by the reports from Prince
+
of
+
William Sound. I want to use federal resources intelligently in
the of clean-up effort, and to work with industry to try to prevent
of
+
+
another tragedy. But shutting down oil exploration and
production in Alaska is no answer. What a travesty it would be
S
-
if we transferred our domestic oil industry to foreign producers
and foreign tankers in the name of ecological protection.
Shutting down Alaska would do nothing to prevent a foreign tanker
from wrecking off the coast of Louisiana or Texas. Shutting down
Alaska would merely increase our dependence on foreign oil.
To reduce our dependence on foreign oil, we must return to
high levèls of exploratory drilling. I propose to restore the
central role of small producers in U.S. energy exploration with
tax credits and other incentives. And I want to do something
else. Texas has a 65-year supply of one of the cleanest forms of
energy known to man -- natural gas. I call on Congress, at long
last, to fully decontrol the natural gas industry
I know there are still a few dark clouds remaining on your
economic horizon. I know that you are concerned about the
7
continuing crisis in many savings and loan institutions. I have
asked for measures to restore these institutions to financial
+
+
+
health. And I have asked for a $50 million appropriation for the
+
+
Justice Department, so that those who willfully abuse the trust
+
of small savers can expect to be pursued, and put in prison
The Senate has acted expeditiously. I call on the House of
Representatives to pass a responsible S & L bill as soon as
possible.
Texas, like all of America, faces many challenges. But I
believe that by working together, as Republicans and Democrats,
as federal and as state officials, we can lick any problems down
the path. Jefferson's dictum of the best government being that
which is closest to the people applies here, in Austin.
Federalism works because of your leadership and your initiative.
True, some problems of the recent past linger. Some areas
of the state are recovering more slowly than others. But the way
is clear to a future as bright and promising as the blue Texas
sky -- a new reliance on a diversified economy, and the
technologies of the next century. This is the secret of the
Texas turnaround, and its unfolding is a tribute to the
leadership of Bill Clements, Senators Gramm and Bentsen, and the
men and women of the Texas Legislature
Texas is starting
to feel like its old self again. There is again a feeling among
53 55
8
Texans that anything is possible -- who knows, the Texas Rangers
might even win the World Series
As we face our future in the White House, Barbara and I take
with us memories of people and places from a state that has been
home for most of our lives.
We remember driving the kids across Texas, and slowing down
so we could take in the fields of bluebonnets and Indian
paintbrush.
We remember the people of Houston, many of them mature and
skeptical, but who nonetheless listened to a green young man and
sent him to Congress.
And I remember Lyndon Johnson at his ranch, an elder
Democrat giving advice to a young Republican, his white hair --
longer in retirement -- blowing in the gentle Hill Country breeze
like the mane of an old lion.
Bar and I treasure all of this -- the sights and sounds of
half a lifetime, the trust of many friends, and the love of a
family. All this and more, we remember whenever we think of
home. That is why we thank God that we are Texans
9
Let me thank you for inviting us back to Austin. God bless
you. And God bless the United States of America.
#
#
#
Davis/Wallace
April 19, 11 a.m.
Title: Texas
Draft: One
PRESIDENTIAL REMARKS: TEXAS STATE LEGISLATURE
CAPITOL, AUSTIN
(Date -- T.B.D.)
((It's a good thing this isn't Bill Clement's birthday
From where I'm standing, another Plaid Day in the Texas
Legislature could blind a fella.))
In all sincerity, happy belated birthday Bill
Lieutenant Governor Bill Hobby, it's great to see you again.
Speaker Gib Lewis, distinguished legislators, fellow Texans,
thank you
Barbara and I are delighted to be back in
Austin, with so many of our friends
I will want to discuss a few issues facing Texas and all of
America. But before I do, let me say a few words about what it
means to me to be a Texan.
Aside from the former kingdom of Hawaii, Texas is the only
nation to have to reconcile itself to being a state. But, like
Hawaii, we will never reconcile ourselves to being ordinary.
From the Pecos to the Pedernales, from the rapids of the Rio
Grande to the broad expanse of the muddy Red River, there is no
place on earth like Texas
2
Nor is there another capital in America quite like this one,
built of a rose-tinged granite that blushes in a low sun. And,
this being Texas, we had to build a capital that is exactly one
foot taller than the one in Washington. I find this appropriate.
Texas certainly stands a little taller in the heart of this
President
Perhaps for this reason, Larry McMurtry is one of my
favorite writers. In Lonesome Dove, he describes the mythic
Texas, and conjures that sense of place we all know so well. I
am awed by a man of letters who can convincingly adopt the voice
of cowboys -- men whose only schooling was in dodging bullets,
whose only lessons were in how to rustle cattle.
But I first set out for Texas not on horseback from
Tennessee, but from Yale in a crimson-red Studebaker. More than
forty years later, that trip is still a vivid memory -- the
lonesome road, a neon Pearl Beer sign appearing in the desert
twilight like an apparition. Stopping at a cafe, I didn't know
if a chicken fried steak was a chicken fried like a steak, or a
steak that tasted like chicken
Still, Barbara and I settled in Texas, as did so many before
us. We raised five children, built a business. And in that span
of forty years, I watched this state grow into greatness. The
Texas of the epic movie Giant seemed almost ordinary in the
3
fifties, with bluejeaned millionaires as common as cactus in
Odessa and Midland. I'm no historian, but it has been noted that
the wealth of merchants preceded the Renaissance of Michelangelo.
In my lifetime I have seen the oil wealth of West Texas finance
the building of great cities, and the expansion of first-class
land grant colleges -- the origins of a Texas Renaissance, if you
will. The energy business made Texas what it is today -- the
Third Coast of the United States
This Texas Renaissance lasted for years, even decades. But
you also know the rest of the sad story -- oil cheaper than fancy
mineral water, skylines of empty buildings, expensive homes to be
had for monthly payments, and thousands of laid-off workers.
Now, I'm also no cowboy. I pitch horseshoes, but I don't
ride broncos. But I understand that cowboys have a term for the
most dangerous and cunning bronco of all: They call it a
"sunfisher." These broncos will rebel against a rider by
adopting a motion not unlike the sunfish of the Gulf -- a full-
force leap into the air, back arched high, flank twisting the
rider to the left, head and upper torso twisting the rider to the
right, in an attempt to tear him apart. Let me suggest that in
the 1980s, the whole state of Texas feels like it has been on
just such a ride
4
An old saying goes that there never was a horse that hasn't
been rode, and never was a man who hasn't been throwed. I guess
Texans have proven that.
It is also said that strong men and women are challenged by
adversity. I believe Texans have proven that, too
When a rider is thrown, he can do one of two things. He can
slink away and never again attempt another act of horsemanship.
Or, he can dust himself off, put one boot in the left stirrup,
throw the other boot over, and get firmly back into the saddle.
I won't kid you. There may be a few more bumps and bruises
ahead. But make no mistake, Texas is back in the saddle again
.
State unemployment has dipped to its lowest level in four
years, signaling the diversification of the Texas economy. In
Marker
1970, the energy sector accounted for nearly 25 percent of state
fether
output. Last year, it accounted for only 11.4 percent. And yet
x5614
Texas has regained the 207,000 jobs it lost from 1986 to 1987,
with employment in plastics, aviation, electronics, space and
computer programming leading the way. The Dallas-Fort Worth
"Metroplex" leads in defense and aviation technology; Houston in
space and biomedical research; Austin, in microelectronics.
5
Another sign that Texas is becoming a world center of
technology is the selection of Ellis County as the site of the
Superconducting Super Collider
When built, the SSC will
enable us to study elemental particles with names like quarks,
mesons (May-sahns) and neutrinos. I can understand how some
people just can't see a practical side for America to invest
billions of dollars in such an arcane field of study.
Well, as Tom Luce, chairman of the Texas National Research
Laboratory Commission said, with a little imagination, you can:
"conclude that future research in the field of high energy could
some day help us conquer cancer." Or discover a way to boost the
amount of information on a microchip. Or answer questions that
eluded Einstein, giving us a glimpse of what the universe was
like at the instant of Creation. The SSC is a key to
understanding nature, and to developing the technologies and
industries of the 21st Century. Let me assure you, I will back
the construction of the SSC with all the powers of the presidency
And let me also salute you, the members of the Texas House
and Senate, and the voters of this state, for having the vision
to take an early lead on this project
Still, no matter how diversified and high-tech Texas
becomes, a strong domestic energy industry is important to the
6
future of this state and all of America. I find it disturbing
that nearly 50 percent of America's oil is imported. As Bill
Clements says, this "cannot be safely shunted aside as merely a
Texas or a producing state problem."
The future of America's energy production is in doubt in the
aftermath of the wreck of the Exxon Valdez off Alaska. I am as
disgusted as you are by the reports from Prince William Sound. I
want to use federal resources intelligently in the clean-up
effort, and to work with industry to try to prevent another
tragedy. But shutting down Alaska is no answer. Shutting down
Alaska would do nothing to prevent a foreign tanker from wrecking
off the coast of Louisiana or Texas. Shutting down Alaska would
merely increase our dependence on foreign oil. What a travesty
it would be if we did nothing to protect the environment, while
transferring our domestic oil industry to foreign producers and
foreign tankers
To reduce our dependency on foreign oil, we must return to
high levels of exploratory drilling. I propose to restore the
central role of small producers in U.S. energy exploration with
tax credits and other incentives. And I want to do something
else. Texas has a 65-year supply of one of the cleanest forms of
energy known to man -- natural gas. I call on Congress, at long
last, to fully decontrol the natural gas industry
7
I know there are still a few dark clouds remaining on your
economic horizon. I know that you are concerned about the
continuing crisis in savings and loan institutions. I have asked
for measures to restore these institutions to financial health.
And I have asked for a $50 million appropriation for the Justice
Department, so that those who willfully abuse the trust of small
savers can expect to be pursued, and put in prison
The
Senate has acted expeditiously. I call on the House of
Representatives to pass a responsible S & L bill as soon as
possible.
Some the problems of the recent past linger. Some areas of
the state are recovering more slowly than others. But the way is
clear to a future as bright and promising as the blue Texas sky -
- a new reliance on a diversified economy, and the technologies
of the next century. This is the secret of the Texas turn-
around, and its unfolding is a tribute to the leadership of Bill
Clements, Senators Gramm and Bentsen, and the men and women of
the Texas Legislature
Texas is starting to feel like its
old self again. There is again a feeling among Texans that
anything is possible -- who knows, the Texas Rangers might even
win the World Series
As we face our future in the White House, Barbara and I take
with us memories of people and places from a state that has been
home for most of our lives.
8
We remember driving the kids across Texas, and slowing down
so we could take in the fields of bluebonnets and Indian
paintbrush.
We remember the people of Houston, many of them mature and
skeptical, but who nonetheless listened to a green young man and
sent him to Congress.
And I remember Lyndon Johnson at his ranch, a retired
Democrat giving advice to a young Republican, his long, white
hair blowing in the gentle Hill Country breeze like the mane of
an old lion.
Bar and I treasure all of this -- the sights and sounds of
half a lifetime, the trust of many friends, and the love of a
family. All this, we remember when we come back. And for this
and so much more, we thank God that we are Texans
Let me thank you for inviting us back to Austin. God bless
you. And God bless the United States of America.
#
#
#
And although Texas did not
participate in the national eco-
Herald
34
S
Sunday,
March
19,
1989
A-5
nomic expansion during the Rea-
Dallas
Times
gan years, the state's economy is
beginning to reflect the same,
gradual move toward services-
Economy of Texas
producing - not goods-produc-
ing:- employment that has OC-
curred elsewhere.
To be sure, energy will re-
healing, study says
main a significant component the
state's economy, if for no other
reason than the past several
years have witnessed some con-
Cheryl Arvidson
solidation of the U.S. oil and gas
TIMES HERALD WASHINGTON BUREAU
industry in Texas," the study
said. "Nevertheless, while output,
WASHINGTON - According
employment and income from
to a study released today by Sen.
energy will likely continue to be
Lloyd Bentsen, D-Texas, the
over-represented' in the state
Texas econ-
vis-a-vis the nation, the energy
amy is mov-
sector plays a proportionately
ing away
smaller role in Texas' prosperity
from
its
today than it did at the beginning
heavy reli-
of
he decade."
ance on the
nd although a disproportion-
oil and gas
industry, a
ted. to end
study
hare of Texas' real, non-farm
personal income is still concen-
develop-
trated in the state's traditional in-
ment expec-
dustries, there is an "unmistak-
able shift away from those
the state's
industries in tandem with trends
long tradi-
tion
of
Bentsen
in the national economy."
The researchers said their
boom or bust" economic cycles
study showed that in terms of
that track the price of oil.
The study, by Professors Har-
output, income and employment
old Gross and Bernard Weinstein
between 1970 and 1987, the
trends indicate "the Texas econo-
of the Cox Business School at
Southern Methodist University,
my is becoming more integrated
said: although oil and gas, and fi-
with the national economy and,
hence, less vulnerable to cyclical
nancial and real estate sectors re-
main soft, the Texas economy is
swings in the price of crude pe-
troleum and other commodities."
experiencing a modest recovery.
More significant, they said, oil
"Practically, this implies
and gas and agriculture, tradi-
smoother, shorter business cycles
tional mainstays of the Texas
for the Texas economy, the pros-
economy, have contributed little
pect of which should prove en-
if anything to the rebound.
couraging to would-be investors
This has occurred, the profes-
in the state concerned about vol-
sors concluded, because over the
atility and the higher risks associ-
past, 20 years, Texas has been
ated with it," the study said.
weaning itself from the oil and
"Similarly, the impacts of greater
integration with the national
gas industry and into a more ser-
vice-oriented industrial base. The
economy will be felt on the
change was accelerated in the
state's fiscal front in the form of
1980s, the authors said, when oil
steadier, more predictable reve-
prices collapsed, but probably
nue streams, as well as a steadier,
would have occurred anyway.
more predictable demand for
In 1970, the study said, the oil
public services."
:
and gas sector accounted for
The researchers speculated
nearly 25 percent of Texas' eco-
nomic output, compared with on-
ly 5.6 percent for the nation as a
that another major implication of
whole. And the remaining indus-
a state economy more closely re-
trial sectors, particularly manu-
sembling the rest of the country
facturing, accounted for a much
will be an end to the "us against
smaller share of output than for
them" mentality in areas such as
the rest of the country.
federal tax policy and spending
But by 1987, the oil and gas
priorities. They went so far as to
sector had constricted to the
suggest state residents may be
point that it made up only 11.4
less pro-oil and more pro-con-
percent of the economic output
sumer in energy policy.
in Texas. That lower figure
"For example," the study said,
comes despite considerable evi-
1"as oil and gas comes to play a
dence that the oil and gas indus-
proportionately smaller role in
try appears to be consolidating in
the Texas economy, Texans may
Texas, the professors said. Mean-
well become more 'consumerist'
while, sectors such as construc-
in their attitude to federal tax
tion, transportation, public utili-
and regulatory policies that affect
ties and trade began to
the oil and gas industry."
approximate more closely the
And although the end of
rest of the country.
"boom or bust" might be good
"To see it go from 25 percent
for long-term planning, the re-
of the economy down to 11 per-
searchers said the change has a
down side.
cent of the economy, that shows
that it's not going to be some-
"Obviously, as the Texas econ-
thing that's just going to have an
omy achieves a greater degree of
overpowering influence on our
integration with the nation's, the
economy in the future," Bentsen
state will be far less vulnerable
said "It means that we won't see
to cyclical swings in commodities
the kinds of wild swings that
prices but perhaps much more
were seen in Texas before."
exposed to national expansions
and recessions."
FUNDING SUMMARY
(Revenue change in millions of dollars)
1989
1990
1991
1992
1993
R&E expense allocation
proposal
n.a.
-1,699
-749
-814
-887
g. Enhancing Energy Security
OVERVIEW
Sufficient energy supplies at reasonable prices are vital to the economic well-being of this
country and to the preservation of our national security.
Domestic production should be stimulated but not by protectionist measures such as an
oil import fee. An oil import fee would amount to a tax increase on everyone who uses energy.
New energy exploration is needed-not more taxes.
Tax incentives can give the domestic oil and gas industry the necessary stimulus. Tax
incentives are particularly needed for the small producers who are so vital to our energy security.
Historically, independent producers have drilled a majority of America's exploratory wells.
There is a need to encourage new methods for recovering oil from old fields, as well as
finding new fields.
Our national security requires a strong domestic oil and gas industry.
PRINCIPLES
The President is committed to the development of programs to reduce America's depend-
ence on foreign oil.
The President believes that a return to high levels of exploratory drilling is needed to
achieve greater domestic production. Such exploratory drilling requires independent
producers with financial strength.
The President believes that tax incentives targeted to exploratory drilling, tertiary
enhanced recovery projects, and independent producers is the most cost-effective method
of achieving these goals.
The President believes incentives are needed because current prices of U.S. oil are low
relative to the costs of finding and producing that oil. When the energy sector recovers,
the proposed incentives would be phased out.
The President believes that at long last the Federal Government should fully decontrol
natural gas.
POLICIES
The President proposes four incentives to encourage the finding of new oil and gas fields
and the reclaiming of old fields. The credits would be phased out if the price of oil reaches $21
per barrel.
40
The President proposes a 10 percent credit on the first $10 million of expenditures (per
year per company) on exploratory intangible drilling costs (IDCs) and a 5 percent credit on the
balance. The credit may be applied against both the regular tax and the minimum tax but will
not eliminate more than 80 percent of the tentative minimum tax in any year in conjunction
with all other credits and net operating loss carryforwards. Unused credits may be carried
forward. The limits on the full 10 percent credit increases the proportion of the incentive going
to the smaller independents.
To encourage increased production from enhanced recovery methods, the President proposes
a 10 percent credit for capital expenditures on all new tertiary enhanced recovery projects.
Teritary enhanced recovery projects use steam, carbon dioxide, or chemical injectants to remove
oil and gas from oil fields. The credit would function in the same manner as the credit for
exploration.
The President proposes elimination of 80 percent of current preference items generated by
exploratory IDCs by independent producers under the minimum tax. IDCs are now an item of
minimum tax preference to the extent the total expense exceeds an allowance based on net in-
come and a first year amortization amount. The taxpayer is denied the benefit of amortization
relating to later years. Further, net income is reduced by percentage depletion even though
percentage depletion may be treated as a minimum tax preference. These problems are greatest
for independent producers doing exploratory drilling. The proposal addresses this particular
application of the minimum tax by eliminating 80 percent of the independent producer
exploratory IDC amount that would otherwise be included as a preference.
The President also proposes modification of the oil and gas depletion rules that discourage
the transfer of marginal wells to independent producers and result in the premature abandon-
ment of producing wells. Independent oil producers are limited in their use of depletion deduc-
tions by two provisions: (1) "proven" properties transferred from integrated oil companies to
independent producers are ineligible for percentage depletion, and (2) the deduction may not
exceed 50 percent of the owner's net income from the property. The President proposes to
remove the transfer rule restrictions and to raise the deduction limit to 100 percent of the
property's net income.
FUNDING SUMMARY
(Revenue change in billions of dollars)
1989
1990
1991
1992
1993
10 Percent credit for explora-
tory drilling
-
-0.2
-0.3
-0.3
-0.4
10 Percent credit for new ter-
tiary enhanced recovery
*
#
*
*
-
Eliminate 80 percent of ex-
ploratory IDC tax prefer-
ences from minimum tax for
independent producers
-
-0.1
-0.1
-0.1
-0.1
Modification of oil and gas de-
pletion rules
*
*
-
$50 million or less.
41
h. Pushing Out the Research Frontier: The Superconducting Super
Collider
OVERVIEW
The Superconducting Super Collider (SSC) is a critical part of this Administration's initia-
tive to strengthen the position of the Nation as a world leader in science and technology. The
SSC holds the potential for new breakthroughs in science, technology, and education. It will
produce discoveries, innovations, and spin-offs that could touch profoundly every American.
The Superconducting Super Collider will be the world's most powerful atom smasher, produc-
ing particle collisions with total energies approaching 40 trillion electron volts, an energy 20
times greater than the highest energies available in the world today. The heart of the facility
is a 53 mile racetrack shaped accelerator. Particles will be guided around this accelerator by
nearly 10,000 state-of-the-art superconducting magnets. The total project cost is estimated at
$5.9 billion, the largest pure science project ever envisaged for actual construction.
"We will succeed in that competition by doing what we do best-by exploiting our
comparative advantage. And our greatest single strength for the future is not mining or
manufacturing or even agriculture-it is our ability to expand the limits of our knowledge.
From that will flow the scientific and technological advances that will enable us to compete
and to raise the living standards of all the nations of the world."
George Bush
PRINCIPLES
The Administration is committed to the construction of the SSC. The SSC will be a one-
of-a-kind experimental facility that will ensure continued progress in advancing our
knowledge of matter and energy at its most fundamental level.
The SSC will provide the capability for the U.S. to remain the world's leader in the field
of high energy physics well into the next century.
The SSC will be used by scientists around the world. The facility will attract an inter-
national community of scientists who will travel to the U.S. to conduct state-of-the-art
research.
The SSC will also serve as a valuable training ground for students from over 100
university-based research teams located across the country.
The Administration believes that the SSC should be a truly international facility. One
third of the total project funding should be provided by non-Federal sources such as the
host State and foreign countries that will share in the scientific and technological benefits
that will accrue from the SSC.
POLICIES
The President is proposing budget authority of $250 million in 1990 for the Federal share
of the construction of the Superconducting Super Collider.
The current request will allow DOE in 1990 to complete site-specfic designs of the techni-
cal systems and conventional construction facilities. Increases are also being proposed in the
operating budget for the design, fabrication, and testing of the superconducting magnets by
42
PROPOSED CHANGE
(In millions of dollars)
Dollar
Percent
1989
1990
Change
Change
Budget Authority
100
250
+150
+150
Outlays
100
206
+106
+106
U.S. industry. Finally, construction funds are proposed to order long-lead time, critical procure-
ments such as power stations and superconducting materials. The actual initiation of conven-
tional construction on the site will be dependent upon the details of the non-Federal cost sharing
commitments to the project obtained in 1990.
FUNDING SUMMARY
(In millions of dollars)
1989
1990
1991
1992
1993
Budget Authority
100
250
392
494
450
Outlays
100
206
375
380
370
i. Expanding Biomedical Research: The Promise of a Healthier Future
OVERVIEW
Biomedical research holds out the promise of a healthier America, made possible by im-
proved understanding of disease, refined prevention techniques, and better therapies.
Progress requires both knowledge and readiness-a readiness to seek out and use valu-
able discoveries. For example, scientists recently discovered that frogs produce magainins,
which shield them from infection. This discovery may lead to powerful new antibiotics for
humans.
The Administration seeks to accelerate basic research in partnership with industry, which
has the role of developing new applications and marketing them. New partnerships are being
formed to shorten the time between laboratory discoveries and their application.
Promising new techniques, like mapping of the human genome, hold new opportunities to
discover the cause of many diseases, leading to their future remedy.
43
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
February 6, 1989
PRESS BRIEFING
BY
SECRETARY OF TREASURY NICHOLAS BRADY;
DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET RICHARD DARMAN;
ATTORNEY GENERAL RICHARD THORNBURGH;
CHAIRMAN OF THE FEDERAL RESERVE ALAN GREENSPAN;
CHAIRMAN OF FEDERAL HOME LOAN BANK BOARD DANNY WALL;
HEAD OF FEDERAL DEPOSIT INSURANCE CORPORATION WILLIAM SEIDMAN;
COMPTROLLER OF CURRENCY
Room 450
Old Executive Office Building
4:35 P.M. EST
Q
What's this going to cost the taxpayers?
SECRETARY BRADY: Thank you, Mr. President.
From the day five months ago that I was sworn in as
Secretary of the Treasury, achieving a sound and responsible
resolution to the savings and loan crisis has been a top priority.
As the President has said, there are no simple or painless solutions
to the problem. When he took office just 18 days ago, the President
reaffirmed our commitment to fix it now, fix it right, and fix it for
good. He also directed us to consult with Congress, and this we have
done.
Two watch words guided us as we undertook to solve this
problem: never again. Never again should we allow a federal
insurance fund that protects depositors to become insolvent. Never
again should we allow insolvent federally insured deposit
institutions to remain open and operate without sufficient private
capital at risk. Never again should we allow risky activities
permitted by the states to put the Federal Deposit Insurance Fund in
jeopardy. Never again should we allow fraud committed against
financial institutions or depositors to be anything but a serious
white collar crime. We're going to find the wrongdoers, as the
President said, recover the assets they've stolen, and put them in
jail for a very long time.
The plan I'm about to describe to you meets all of these
requirements. It is a blueprint for comprehensive reform and
financing. It is supported by all the federal bank regulators -- the
Federal Reserve, the Comptroller of the Currency, the Federal Home
Loan Bank Board, and the Federal Deposit Insurance Corporation.
I will first describe the reform program and then turn to
the financing structure. But before I begin, let me stress that
insured depositors need not worry. Insured deposits are as safe
today as they were yesterday, regardless of whether these savings are
in savings and loans or commercial banks. Savers with insured
accounts will continue to be protected in the future. The banks that
are open today will be open tomorrow. Our aim is to ensure that
there will be no disruption of services in local communities. Above
all, federally insured savings are and will remain backed by the full
faith and credit of the federal government.
Now for the reform program. The current organization of
the thrift system dates back to the New Deal era. However, as the
events of the 1980s have demonstrated, this system is antiquated.
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The Federal Home Loan Bank Board, under the leadership of Chairman
Danny Wall, has addressed this crisis in an expedited manner, under
extremely difficult circumstances, with very low funding, and a
limited staff. The men and women who work at the Bank Board and the
FSLIC deserve our thanks for this tireless effort under difficult
circumstances.
But to correct the long-term structural problems
inherent, we proposed the creation of an independent insurance agency
to protect depositors. FSLIC will be consolidated with the FDIC.
The existing expertise and manpower of the FSLIC will be incorporated
into the FDIC. However -- and I stress this point -- two separate
insurance funds, with separate premium screens, one for the S&Ls and
one for the commercial banks, will be maintained. The two separate
funds cannot be comingled.
In conjunction with this step, we propose to reorganize
the existing regulatory structure to ensure the availability of home
financing in the future. The entire supervisory structure will be
accountable to the Chairman of the Federal Home Loan Bank System
instead of to the industry they regulate. And the Chairman of the
revitalized Federal Home Loan Bank System, like the Comptroller of
the Currency, will report to the Secretary of the Treasury.
In a further measure to put our financial institutions on
a sound footing, we will require that the level of private capital be
uniform for all banks and S&Ls in adequate quantities to act as a
buffer to the federally insured deposit funds. Therefore, by June 1,
1991, all insured institutions must meet the uniform capital
standards applicable to FDIC insured banks. For the savings and
loans, this will mean roughly doubling the required capital.
Further, we are upgrading safety and soundness measures.
If this plan is enacted, in the future, depositors will be protected
through a range of new measures, including a capital requirement that
will be pegged to the risk of the S&L investments; stricter standards
for granting insurance, prohibitions in restrictions on growth and
risk-taking by undercapitalized institutions; and where risky
activities authorized by the states pose a threat to the insurance
fund, federal deposit insurance standards will prevail.
Requirements for receiving federal deposit insurance will
be determined by the FDIC. There will be no more windmill farms, no
prize cattle herds financed by federally guaranteed deposits. And
the new uniform accounting, supervisory and disclosure methods will
help enforce these measures.
Lest anyone have any doubts about how serious we are
about cleaning up the thrift industry and keeping it clean, we are
upgrading enforcement and increasing penalties to make fraud against
the financial institutions and depositors a most serious white collar
crime. Under our plan, the maximum civil penalty will be increased
from the current $1,000 per day to $100,000 per day. Under our plan,
the U.S. government will make every effort to recover the squandered
funds by increasing funds available for enforcement.
These reform measures are vitally important to the future
of the thrift industry. Without them we will not have a healthy
private savings and loan industry to provide home financing to
Americans. But, as you all are acutely aware, reform and a financial
solution to the problems of the current system go hand in hand.
When combined with the $40 billion already spent, the $50 billion of
new funds provided by this program will bring to $90 billion the
total amount available to address the problems of insolvent S&Ls.
We believe it is essential that we resolve with all
deliberate speed the cases of the insolvent S&Ls you've all read
about. We will do so through the creation of a new organization
called the Resolution Trust Company, the RTC. It will be a
corporation whose function is to isolate insolvent S&Ls, separate
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them from healthy ones, and resolve them in an orderly fashion. The
RTC mechanism will allow one consolidated resolution process where
accounting for and controlling the funds will be a clear and
straightforward process.
In short, strict accountability will be ensured. The RTC
will not have a. big staff and the FDIC-will manage the resolutions.
The work of the RTC will be overseen by a board consisting of the
Secretary of the Treasury, the Chairman of the Federal Reserve, and
the Comptroller General. And a funding corporation will sell $50
billion in bonds over the next three years to finance the
resolutions.
Our plan for refinancing the recovery and restructuring
of the S&L industry uses both private and public funds to resolve
insolvent thrifts. This plan is on budget. In other words, every
set of additional public funds spent counts as an increase in budget
outlays. Funds for the payment of principal will come from the S&L
industry itself.
In all, this plan provides funds for three purposes.
First, S&L industry and Treasury funds are used to finance the RTC's
resolution of the insolvent thrifts. Second, S&L insurance premiums
are used to create an insurance fund for healthy S&Ls. And third,
increase commercial bank insurance premiums help bring the FDIC
insurance fund for commercial banks up to a fully funded level. But
let me reiterate, no commercial bank insurance premiums are used to
resolve insolvent S&Ls or to go into the S&L insurance fund.
The S&L industry financing comes from three sources --
retained earnings of the Federal Home Loan Banks, funds from the
disposal of assets received by the insurance fund from insolvent
S&Ls, and deposit insurance premiums charged to individual S&Ls.
Commercial bank resources required to bring the FDIC fund up to a
fully funded level will also come from an increase in insurance
premiums. The FDIC will reduce insurance premiums to both commercial
banks and S&Ls once it determines that their respective funds are
fully financed and pegged to the more historical reserve-to-deposit
ratio of 1.25 percent.
FSLIC and the FDIC will immediately begin a joint
supervisory program -- by "immediately," I mean tomorrow -- with
personnel also contributed by the Federal Reserve and the officer of
the Comptroller of the Currency. Over the next several weeks, FDIC
personnel will assume supervisory control of insolvent S&Ls to
protect depositors. This program will stabilize these institutions
by curbing losses and will give a head start for the tough job ahead.
This then is the administration's solution to the savings
and loan crisis. If enacted by Congress in a timely manner, it will
provide a sound, long-term solution to the S&L problem. I join the
President's call on Congress to work with us to turn this plan into
law as soon as possible. Working together, we can recreate and
rejuvenate the vital thrift industry which has served our country so
long and so well in the past.
Q
How much is it going to cost?
Q
How much money do you think it's going to cost the
taxpayers? I mean, we know about the $90 billion. If you could give
us an idea of what it's actually going to cost out of our pockets.
SECRETARY BRADY: Well, $90 billion is both -- it counts
for money that's been spent and the $50 billion that will be spent.
Our best estimates in the first 10 years is that it will come roughly
half from the industry and half from the taxpayers.
Q
Is that all the money that it's going to cost us --
$90 billion?
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SECRETARY BRADY: That's what we think. We think the
problem the size of the problem is $90 billion. Actually there is
a slight reserve in there so that if there are any unforeseen
unpleasant circumstances that show up, we've got some room in there
to take care of it.
Q
Let me make certain I-understand that. If it's half
from the taxpayers and half from the S&Ls, that's $45 billion from
the taxpayers and over 10 years it's $4.5 billion a year?
SECRETARY BRADY: That's about right.
Q Mr. Secretary, there -- in the fact sheets we were
given, it says there is -- of the $40 billion already committed that
the S&L industry will pick up part of that and that Treasury the
rest. I don't understand how you get the $40 billion.
SECRETARY BRADY: I'm going to let Dick Darman comment on
that. (Laughter.)
Q
Can you explain the relationship of the $45 billion
to the estimate here that there was a $40 billion already committed
and that Treasury will pick up the rest of that?
DIRECTOR DARMAN: You people are too tall for me.
Let me try to give you a more detailed breakdown. In
Fiscal Year '90, the net budget outlays associated with this,
everything considered, the new element that has to go to cover some
interest and Treasury contribution to some funding of the old piece
which is still left over for funding, which is what I think you are
referring to, would be $1.9 billion for Fiscal Year '90, $6.0 billion
for '91, $3.8 billion for '92, $3.7 billion for '93, $1.5 billion for
'94. That's a total of, if you add $11.1 for Fiscal Year '89, which
deals with some of what has already happened -- a good deal of what
has already happened -- that's not new -- the total for '89 through
'94 would be $28.1 billion. I think you may have that in the fact
sheet. I haven't seen the latest version.
The number for '89 to '99 -- comparable number -- would
actually be $39.9 billion on our estimates.
Q
I take it you're estimating the funds -- a couple of
funds will be capitalized by that? Is that the reason, and that the
premiums would decline or what? or that the amount -- the
contributions would decline?
DIRECTOR DARMAN: No. These numbers bounce around for a
variety of reasons, and -- you mean, over time? All that's left to
pay for as you move out is the -- or, the main thing left to pay for
is the Treasury contribution to interest. It's offset by some other
things that are happening -- some asset sales along the way, some
premiums coming in, things going out. There are a lot of flows, but
the nets are the ones that I gave you. We can give you a more
detailed backup if you'd like to see it all the way across.
The Treasury payments for the bond interest itself -- and
then I'll retire from the podium and let it get back to substance,
not numbers -- for the bond interest itself, those numbers go in
Fiscal Year '91, .4; '91, 1.6; '92, 0.9; '93, 0.8; '94, 1.1; and the
five-year total for that component is $6.3 billion. So that is part
of the 28 billion.
Q And that is taxpayer payments to help pay for the
bond interest? That's separate and beyond what the savings and loans
have contributed?
DIRECTOR DARMAN: It is in addition to what they will
have contributed. Let me just clarify one thing. There is zero
Treasury or public or taxpayer -- whatever label you want to use --
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money that is involved with respect to the principal of these bonds.
Those are covered entirely and in advance by private sources. There
is, however, a shortage when it comes to servicing the interest, a
projected shortage, when it comes to serving the interest on these
bonds. And to make sure that the bonds can be sold at a low cost in
the market, the Treasury is saying it will cover the difference
between what will be covered by- the premium flow for that interest
and the total interest burden. That's the number that I gave you for
interest. And it's only the interest that is the public money.
Indeed, it's not all of the interest, as your question suggests.
It's only a portion of the interest, and it's none of the principal
-- zero on the principal.
Q
I take it that number is the 39.9 -- that's the
taxpayers number? Not 45, it's 39.9?
DIRECTOR DARMAN: The 39.9 is the total net of everything
over a 10-year period, that's correct. And it bounces around year to
year.
Q
Secretary Brady, President Bush said that he did not
know -- said there was no guarantees that this higher cost for
bailing out the S&Ls would be passed on to the consumer. Do you have
any concern at all about the recent trend towards higher interest
rates in the United States and the affect that has on the dollar?
SECRETARY BRADY: Well, to get to President Bush's
question, it was asked first of all, there's no way of knowing
that'll be passed on to the depositor. But competition is a very
hard force in this country, and perhaps those who pass it on won't
get the deposits; the guys that might absorb it will get the
deposits. So I don't think there's any way of saying whether it will
or won't be passed on until we see how it works. My own private
opinion is competition will take over and the guys that don't pass it
on are -- will be able to give the depositors more money.
Q
Are you concerned about interest rate levels at
present, though? The trend towards higher rates?
SECRETARY BRADY: I think you better wait until Chairman
Greenspan gets up here. I don't want to comment on that.
Q
You said that $40 billion has already been spent.
But $40 billion has been committed, at least the way I understand
this. Can you explain why you're only having to raise $50 billion?
SECRETARY BRADY: Well, the problem is somewhere between
$80 billion and $90 billion big. When people say that, and all the
estimates that you've been reading over the past months, they also
include in that figure that amount of resolutions that have already
been taken care of by Danny Wall and FSLIC. So you shouldn't add
that to the total. You add the 40 that's been in the past and what
we say is some 40 to 50 to go, and that gets to the 80 and the 90.
Q
But the money -- what has been committed in the
future, but that money hasn't already been laid out by the
government.
SECRETARY BRADY: Well, in a sense, it has been laid out
by the government because it's been committed in bonds and
resolvements that the FSLIC has made. So someday you've got to pay
those off, so it's committed.
Q
But there will be adequate funds in the FSLIC to --
SECRETARY BRADY: There are adequate funds in this
program to pay off not only what has been committed before December
31st, 1988 and what we are proposing from here on.
Q
How much of this will require congressional
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legislation and how much of it can be done administratively without
Congress' approval?
SECRETARY BRADY: In terms of congressional legislation,
all the first part of what I mentioned to you this afternoon, which
is the creation of the Resolution Trust Company and certainly all of
the reforms that go.. along with that increasing the penalties and
the like, take congressional action. But starting tomorrow morning,
Chairman Wall and Chairman Seidman have said that they're going to
put the two funds together -- FSLIC from an administrative standpoint
will start to go into FDIC, although the two funds will remain
separate.
Q
Mr. Secretary, I'm puzzled by the fact that the fact
sheet there's a small, only 10-percent increase in the insurance
premium to be paid by the S&Ls and an increase of nearly 50 percent
to be paid by the banks. Since you're saying that these premiums are
not going to be comingled, why are the bank proportionately taking a
much bigger hit than the S&Ls?
SECRETARY BRADY: Well, to start off with, the banks come
from a much lower level and the funds that are generated out of the
bank premiums to take a fund which is at a historical low level
compared to what it should be and bring it back up. And you can't do
that in one year; it takes some time.
Q
If I may follow up, what are some of the problems
that have accrued apparently in recent years with the banks that
require a virtual doubling of the bank's insurance premium?
SECRETARY BRADY: Well, we can get into that a little bit
later; Bill Seidman can tell you. But the same problems that the
banks have had -- I mean the same problems that the S&L industry have
had, the bank industry has also had. It isn't just particular to the
S&L industry.
Q
Mr. Secretary, when you reorganize the Bank Board,
do you anticipate Mr. Wall will remain as Chairman?
SECRETARY BRADY: He will remain as Chairman.
Q
Mr. Secretary, I know when you fellows start talking
about a billion here and a billion there, to paraphrase Ev Dirksen,
you're not yet talking about real money. But I need the difference
between the $39.9 billion that Dick Darman talked about and the $45
billion that you talked about clarified, please.
SECRETARY BRADY: Dick?
Q
Is that just difference in estimates or is that part
of round figuring the other more precise figure?
DIRECTOR DARMAN: I think the Secretary was rounding, if
I'm correct.
SECRETARY BRADY: Correct.
Q
Is that right, Mr. Secretary?
Q
Could we get the total figure that the taxpayer is
going to have to pay? Mr. Darman only gave us the five-year figure.
What is the total amount?
DIRECTOR DARMAN: I gave you a five-year figure of $28.1
billion and a 10-year figure of $39.9. I don't have the figure over
the whole life, but the proportion of the interest that is covered by
the public sector rises as you go beyond 10 years. But the present
value of that is an extremely small number because, obviously, you're
talking about 20, 30 years from now.
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Overall, just to give you a rough feel, if you looked at
the total expenditures involved and you said, what percent is public?
In five years it's about 25 percent. Over the 10-year period it's
about 42 percent. Over the 30-year period, in nominal terms, it's
about 54 percent. That is not the correct way to look at this. If
you looked at it in present value terms, the public share would be
substantially smaller. But if you looked at it the way people
ordinarily look at it, you would say over the 30-year life, it would
be about half and half.
Q
Dick, in terms of your short-term problem and what
the President has to do on February 9th, this will require a line for
additional outlays in the Fiscal '90 budget, is that correct?
DIRECTOR DARMAN: This will be included in the February
9th presentation with, I hope, exactly the numbers I've read to you
now. And we will, I hope, still meet the Gramm-Rudman-Hollings
targets.
Q
So to be specific, that means $1.9 billion
additional in Fiscal '90?
DIRECTOR DARMAN: Obviously, if you're going to spend
this money and it's treated as outlays and you're going to budget it,
then it means it's got to be in the budget. It will be in the budget
and I would hope and expect we will still meet the
Gramm-Rudman-Hollins targets.
That said, I might note that the baseline estimates that
have been done prior to our doing this analysis presumed that there
would be about this level of expenditure required. So it is not
something which suddenly shows budget planning way off. It fits
roughly within the funds that have been allocated.
Q
But to be specific, that's $1.9 billion over and
above what the Reagan administration left you?
DIRECTOR DARMAN: No, that's incorrect. No, it's $1.9
billion in '90 period. In fact, in the Reagan budget, that number
was $2.1 billion. So it's slight -- it's almost the same as in the
Reagan budget.
Q
To follow that, the Reagan budget also had $10
billion for '89 and you've got $11.1 billion. So you've dumped some
past. of your current costs that went over it, you dumped it back into the
DIRECTOR DARMAN: Rich, if you'll pardon my saying so,
the word "dump" is not really appropriate. (Laughter.) The November
estimates were done before the December action. When we put out our
budget, you will see that we take account of the December action.
And because the December action was taken after the November
estimates, it wasn't in those estimates, but it will be in our
estimates. We haven't dumped anything. We will properly account for
what has already been done.
Q
Mr. Brady, the competitive implications of requiring
the S&Ls to be brought up to a standard of financial management that
banks meet is likely to produce fewer of the benefits that bring
deposits to them in the first place. Has this contingency been taken
into effect in assessing future ability to contribute to this deposit
premium fund?
SECRETARY BRADY: Yes. I think that the fact that we're
requiring more capital in the system and that the whole system is
sounder will, in effect, reduce the amount of money they have to pay
for their deposits. It should come down.
Q
Do you expect them to -- there be a failure rate as
they try to bring themselves --
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SECRETARY BRADY: Well, there may be some, but in the
long run we'll have a much sounder and safer system. We've got some
assumptions for institutions not being able to stand the competitive
climate in our assumptions. It's accounted for in the figures. But
I don't think it's going to be all that big.
Q
Sir, are you anticipating to continue the moratorium
on S&Ls and the banks going from one fund to the other, or --
SECRETARY BRADY: We are -- that moratorium, if the
legislation is enacted, will be part of the legislation.
Mr. Attorney General, they want to ask you a question.
ATTORNEY GENERAL THORNBURGH: There are really two
important roles that the law enforcement community can play here.
One is the obvious prosecution of those persons who have violated the
laws in connection with failures and shortfalls in the system as it
presently exists. The other is to provide some suggestions for
remediation as we develop these cases and uncover patterns that can
be dealt with better within the regulatory structure.
The review of the Department of Justice activities in
this area began shortly after I assumed office, and we are able to be
fairly precise about where the needs are and how we can utilize the
figure that has been announced today as a goal for increased
resources for the Department of Justice. The $50 million will be
allocated to increasing our investigative capability through the
Federal Bureau of Investigation, providing more prosecutors and more
support personnel in the areas in which these problems exist. And in
addition to resources, the increased civil and criminal penalties
which Secretary Brady spoke about, the addition of new seizure and
forfeiture language which will enable us to recoup some of the
resources that have been diverted out of the system all provide a
package that we are, I think, confident will greatly enhance the
ability to contribute to restoring the credibility and integrity of
the system as a whole.
Q
Are those, sir, who mismanaged in the past, largely
beyond your reach?
ATTORNEY GENERAL THORNBURGH: We have a number of
indictments that have resulted in convictions thus far, a number
awaiting trial, and a number of investigations in various stages.
It's been clear, however, that lack of resources has been a major
problem in providing the deterrent capability that we ought to have
in our law enforcement operations.
Q
Since about half, or 40 percent or half of these
frauds or collapses have occurred in Texas, do you plan to allocate
about 40 percent or half of the enforcement resources to Texas, too?
ATTORNEY GENERAL THORNBURGH: Well, as you know, we
already have a substantial commitment to the Dallas task force and we
will be looking at ways in which to bring that up to the level
necessary to pursue every allegation within that jurisdiction, but we
have the advantage there of not only having a head start in terms of
the placement of resources, but a laboratory within which this
special effort has been undertaken that can be used in replicating in
other districts across the country.
Q
If I could ask Secretary Brady -- President Bush in
his opening remarks said that broader factors in the economy figured
into the S&L crisis that we have now. Many people feel that this
proposal will be simply throwing good money after bad unless some
more steps are taken to deal with the highly-leveraged position that
the overall economy is in. That is, the creation of unsecured notes,
the junk bonds that are used in leveraged buyouts, and so forth,
which they believe has actually contributed to the condition that the
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S&Ls find themselves in now.
SECRETARY BRADY: Well, I don't really think that's what
caused the problem in the S&L industry. The S&L industry problem was
caused by mismanagement to some extent, fraud to some extent, but
also some severe depressions in some of the industries that these
people did. business in.
Also, it's a mistake, we have found out, to federally
insure one side of the balance sheet and on the other side of the
balance sheet let the institutions who can go and get federally
insured funds invest in any kind of activity that they want. So the
main stem of this program is to make sure that two things happen --
if people want to do that, they've got an awful lot more of their own
money at risk first so that the federal government has some cushion
there before they have to come up with their guarantees, but also to
make sure that the type of investments that these people can get into
is severely restricted from what they were.
Q How about the LBOs? Do you think that there should
be any actions taken to divert the level of activity that's going on
now?.
SECRETARY BRADY: We've had extensive hearings on this
subject. I'm sure you read about the results of those hearings --
Chairman Greenspan testified, I testified. I think the general
conclusion, not only from the people in Congress who listened, but to
those of us that testified, is that this is a trend that we should
watch very closely, that some of the reasons that we should be
concerned about it are more philosophical reasons, which are that so
much of our talent and expertise in this country is used to come up
with financial engineering when the rest of the world is setting long
term plans. But for a fix right now, I think the general conclusion
so far, from the people that I've talked to that come out of those
hearings, is people want to watch and wait some more.
We'll just take a couple more questions. We're going to
-- we have a complete briefing for those who want to stay and some
fact sheets to hand out, but why don't we take two or three more
questions.
Q
Mr. Secretary, can we go back to the $40 billion?
As I understand it, is the amount of notes that were issued under Mr.
Wall's resolution -- right?
SECRETARY BRADY: I'm going to let Mr. Darman come up
here and repeat what he said before to you.
Q
How is that going to be repaid?
DIRECTOR DARMAN: It's the -- the $40 billion is not the
amount of the notes. About 20 is the amount of the notes, and the
remainder is an estimate of the value of the yield maintenance
agreements that are associated with those notes, and other costs
associated with those deals. The notes -- the roughly $20 billion in
notes have already been scored as outlays in the federal budget. The
remaining portion has not yet been scored because in most cases the
remaining portion has not yet been paid. The deals have been
concluded, the obligations are there, but the additional funds are
paid over time and it's a projection as to what those expenses will
be. So some of those are costs that continue into the future even
though these deals have already been concluded and the $40 billion
has already been committed.
Some of that continuing stream can be funded from the S&L
premiums, but that -- when you add up everything that has to be
funded, with the premium structure that is projected, you still come
up short by the amount that I indicated over the period. So part of
the amount that I indicated you could think of -- and I identified it
specifically -- as paying the interest. The remainder is filling a
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gap which exists above and beyond the interest in part from the
expenses -- future expenses associated with deals already done.
Q
So what you're saying is that the principle -- no
principle will be repaid, that's limited to the $50 billion in
bonds? There is a portion of those notes and deals that you will
have to cover out of general revenue funds?
DIRECTOR DARMAN: Well, this takes all of that into
account. The 30 year cost, the 10 year, 15 -- all of that takes
fully into account a presumption as to what the repayment schedule
and how that's going to be financed and so on. And I think that will
all be laid out in the detailed fact sheets you'll get.
SECRETARY BRADY: We're going to take one more question
from this lady here. But I just want to comment on one thing. The
$50 billion that's going to be raised by the Resolution Trust Company
is coming all from S&L industry funds, that is not coming from the
taxpayers.
Q
I have a two-part question. First of all, I just
want to understand -- the $40 billion that Danny Wall committed last
year, the GAO estimates that the Bank Board is going to have a short
fall of about $26 billion. Is that what you're saying you have
included in your estimate?
DIRECTOR DARMAN: No, we don't have exactly the same
estimate, but we have a little bit different estimate than was used,
I think, by Danny Wall, and we are taking our revised estimate into
account. But what you say is the amount of the shortfall depends on
where* you say your allocating what's coming in. What's coming in --
Q
They said over ten years -- the GAO said over 10
years --
DIRECTOR DARMAN: I understand, but there's a question of
whether -- what you assume else is being paid for with the stream of
money coming in. What you'll see, I think, in the sheets that we'll
hand out is an easier way to look at it. Just separate out the
pieces, look at all collections coming in, all obligations for things
going out, and you can see what the gap is there and which portion is
paid publically and which is --
Q
But regardless of what the short fall is, you're
saying it will only be interest rates --
DIRECTOR DARMAN: No, --
Q
That the taxpayers will only pay --
DIRECTOR DARMAN: No, that's with respect to the $50
billion that Secretary Brady has correctly said will be raised, and
the principle of -- with that $50 billion, the principle obligation
-- $50 billion -- will be covered entirely and in advance by private
sources. It's not dependent on any future stream because it will be
covered, if I might say, it would be covered by the purchase of zero
coupon bonds immediately from private sources, from industry sources.
And those zeros mature and fully cover the $50 billion. This isn't
some promise dependent upon a future income stream.
Q Well, what about the $40 billion? We understand
that for the 50, but the 40 --
DIRECTOR DARMAN: Some of that is not adequately covered
and a portion --
Q
How much?
DIRECTOR DARMAN: Well the difference, roughly speaking,
the net amount that isn't covered is the difference between the
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number I gave you for the interest portion and the bottom line for
total outlays.
Q
Can you give us a number? How much are taxpayers
going to have to pay of the $40 billion?
DIRECTOR DARMAN: I can't break it up that way for you.
I gave you the amount that really matters which is how much the
taxpayers are going to have to pay, period.
Q
And second, the follow-up question on that is, when
you talk about a $90 billion problem, that's on principle, that
doesn't count the interest payments, correct?
DIRECTOR DARMAN: That is a way of putting it that would
be correct. If you looked at the total debt servicing associated
with it, the number would be larger than 90, which is why some of
these numbers we've been using here don't correctly add.
Q
What's the number if you add the total amount --
SECRETARY BRADY: Let me just say, you know, that is a
way to look at it, but it -- I mean if you buy a house and the person
sells it to you for $100,000 you don't -- and somebody asks you how
much it cost, you don't say $100,000 plus all the interest that it
cost you.
Q
I do when I'm thinking about tax dollars.
SECRETARY BRADY: Well, you know, when we account for an
aircraft carrier or some capital item in the budget we don't -- we
say what the thing cost when you buy it from the guy that sells it to
you and not what the financing charges are and the portion of the
deficit over --
Q
Just humor me, how much is the total payment,
principle and interest?
Q
Can somebody else ask a question.
Q
Yes, please.
DIRECTOR DARMAN: Maybe this would humor you. I have
already given you that. The total I gave you is for all of the
above, it is the way you would want it, not the small way. If we
wanted to give it the way people normally think about a house, the
number would be lower.
SECRETARY BRADY: We're going to -- thank you all very
much. We've got Richard Breeden and Bob Glauber here who have got
fact sheets and all of the backups and we urge you to stay here and
work with them and get the subject cleared up.
END
5:15 P.M. EST
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
February 6, 1989
NEWS CONFERENCE OF THE PRESIDENT
Room 450
Old Executive Office Building
4:10 P.M. EST
THE PRESIDENT: Well, for the more than half a century,
the U.S. has operated a deposit insurance program that provides
direct government protection to the savings of our citizens. This
program has enabled tens of millions of Americans to save with
confidence. In all the time since creation of the deposit insurance,
savers have not lost one dollar of insured deposits. And I am
determined that they never will.
Deposit insurance has always been intended to be
self-funded. And this means that the banks, the savings and loans
and credit unions that are insured pay a small amount of their assets
each year into a fund that's used to protect depositors. In every
case these funds are spent to protect the depositors, not the
institutions that fail.
For the last twenty years, conditions in our financial
markets have grown steadily more complex, and a portion of the
savings and loan industry has encountered steadily growing problems.
These financial difficulties have led to a continuous erosion of the
strength of the Federal Savings and Loan Insurance Corporation --
FSLIC. Economic conditions have played a major role in this
situation. However, unconscionable risk-taking, fraud, and outright
criminality have also been factors.
Because of the accumulation of losses at hundreds of
these thrift institutions, additional resources must be devoted to
cleaning up this problem. We intend to restore our entire deposit
insurance system to complete health.
While the issues are complex, and the difficulties
manifold, we will make the hard choices, not run from them. We will
see that the guarantee to depositors is forever honored, and WC will
see to it that the system is reformed comprehensively so that the
situation is not repeated again.
To do this, I am today announcing a comprehensive and
wide-ranging set of proposals. The Secretary of the Treasury,
Nicholas Brady, will describe these proposals to you in detail in a
few minutes. However, I think it's important to summarize some of
the major points.
The proposals include four major elements. First,
currently insolvent savings institutions will be placed under the
joint management of the FDIC and FSLIC pursuant to existing law.
This will enable us to control future risk-taking and to begin
reducing ongoing losses.
Second, the regulatory mechanism will be substantially
overhauled to enable it to more effectively limit risk-taking. The
FDIC would become the insurance agency for both banks and thrifts
under this system, although there's no commingling of funds. The
insurer will have the authority to set minimum standards for capital
and accounting. Uniform disclosure standards will also be
implemented. The chartering agency for thrifts would come under the
general oversight of the Secretary of the Treasury.
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Third, we will create a financing corporation to issue
$50 billion in bonds to finance the cost of resolving failed
institutions, which will supplement approximately $40 billion that
has already been spent.
All of the principal of these bonds, and a portion of the
interest on them, will be paid from industry sources. However, the
balance would be paid from on-budget outlays of general revenues.
Hopefully, some of these revenues will be recovered in the future
through sale of assets and recovery of funds from the wrongdoers.
Fourth, we plan to increase the budget of the Justice
Department by approximately $50 million to enable it to create a
nationwide program to seek out and punish those that have committed
wrongdoing in the management of these failed institutions. These
funds will result in almost doubling the personnel devoted to the
apprehension and prosecution of individuals committing fraud in our
financial markets.
As you can see, these proposals are based upon several
overriding principles.
First, I will not support any new fee on depositors.
Second, we should preserve the overall federal budget
structure, and not allow the misdeeds and the wrongdoings of savings
and loan executives and the inadequacy of their regulation to
significantly alter our overall budget priorities.
And third, I have concluded that this proposal, if
promptly enacted, will enable our system to prevent any repetition of
this situation.
And fourth, I have decided to attack this problem
head-on, with every available resource of our government because it
is a national problem. I have directed that the combined resources
of our federal agencies be brought together in a team effort to
resolve the problem.
And fifth, I believe that banks and thrifts should pay
the real cost of providing the deposit insurance protection. The
price the FDIC charges banks for their insurance has not been
increased since 1935. We propose to increase the bank insurance
premium by less than seven cents per $100 of insurance protection
that they receive. Every penny collected would be used to strengthen
the FDIC so that the taxpayers will not be called on to rescue it a
few years from now.
And I make you a solemn pledge that we will make every
effort to recover assets diverted from these institutions, and to
place behind bars those who have caused losses through criminal
behavior. Let those who would take advantage of the public trust and
put at risk the savings of American families anticipate that we will
seek them out, pursue them and demand the most severe penalties.
In closing, I want to just say a word to the small savers
of America. Across this great land families and individuals work and
save, and we hope to encourage even greater rates of savings to
promote a brighter future for our children. Your government has
stood behind the safety of insured deposits before, it does today,
and it will do so at all times in the future. Every insured deposit
will be backed by the full faith and credit of the United States of
America, which means that it will be absolutely protected.
For the future, we will seek to achieve a safe, sound and
profitable banking system. However, integrity and prudence must
share an equal position with competition in our financial markets.
Clean markets are an absolute prerequisite to a free economy, and to
the public confidence that is the most -- that is its most important
ingredient.
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I've determined to face this problem squarely, and to ask
for you support in putting it behind us. I have ordered that the
resources of the Executive Branch be brought to bear on cleaning up
this problem. I have personally met with the leadership of Congress
on this issue. My administration will work cooperatively with
Congress as the legislation that we will submit in a few days' time
is considered. I call on the Congress to join me in a determined
effort to resolve this threat to the American financial system
permanently, and to do so without the delay.
I welcome the leaders that are with me here on this
platform. I think their support says a lot about the efficacy of our
proposal. And now I propose to take just a few questions. On the
technical aspects, I will defer to these people, and then I'll be
glad to turn this over to Secretary Brady. I believe we start with
Helen and then Terry and then get going --
Q
Mr. President, are you guaranteeing that the extra
costs -- premiums, increases and so forth -- will not be past on to
the depositors and taxpayers? And also, what is your responsibility
in this debacle -- I mean, the Reagan-Bush zeal for deregulation of
business and banking?
THE PRESIDENT: On the first place, we're not
guaranteeing that. I would hope that wouldn't happen, but there is
no guarantee what the institutions will do. Secondly, there is
enough to be said for everybody in this together trying to solve this
problem, so I can't equate any personal -- not inclined to go into
any personal blame, simply to say that we've got to solve this
problem and we're on the path to doing that.
Q
Mr. President, the House votes tomorrow on that
controversial pay raise plan, and the Senate has already voted
against it. Would you sign a bill that vetoes the pay raise, not
only for the members of Congress, but also for federal judges and
other high officials in the government?
THE PRESIDENT: I've said I support it.
I
Mr. President, there is a feeling that part of this
problem is attributable to deregulation of the financial industry.
In retrospect, do you think that deregulation might have gone too far
in the last ten years or so? And in the future, is your marching
order to your administration to be a little more careful in
regulating this particular industry?
THE PRESIDENT: Jerry, I don't know the answer. I'd be
most interested to know what our experts here feel about whether --
how much of the problem could be attributed to deregulation. I just
don't know the answer to your question, so I can't reply.
I
Mr. President, you have placed considerable stress
in these early days of your presidency on ethics and propriety, yet
in recent days there has been controversy on Capitol Hill concerning
the propriety of some of Tower's alleged behavior, questions raised
over the weekend about the financial investments on the private funds
of the man in charge of ethics, your counsel, Boyden Gray, and other
questions involving members of the administration -- or members-to-be
of the administration. And I wonder, sir, what has happened here?
Is it too harsh behavior on our part, too lax behavior on your part?
What?
THE PRESIDENT: I don't think anything has happened. I
learned long ago in public life not to make judgments based on
allegations. But having said that, I want to have my administration
aspire to the highest possible ethical standards. And we have
appointed a commission to go out there now and try to detail what
these standards should be. And we are in a new era on these matters.
Matters that might have been approved and looked at one way, may have
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a different perception today. And so what I want to do is finalize
our standards and then urge everybody in all branches of government
to aspire to those standards. But I do think, Brit, that it's fair
that we not reach judgment on Senate hearings before the Senate
hearings are concluded because it's very hard to filter out fact from
fiction, spurious allegations from fact. And I am not about to make
a judgment based on a sensationalized newspaper story. I'm simply
not going to do that. That wouldn't be fair and I'm not sure how
ethical it would be. So let's wait and see this -- you're referring
to the Tower matter up there -- that matter has been looked at by the
FBI, the committee now has that, they have the responsibility to make
determinations, and I'll be very interested to see what they say.
But I am not going to make --- jump to conclusions based on stories
that may or may not have any validity at all.
2
Mr. President, even if, as your spokesman says you
do, you continue to back Senator Tower for the position, there are
those you've heard who say that the best thing he could do for you is
to step aside because even if confirmed he then would become damaged
goods, weaker in administering a very, very tough job on your behalf.
How do you respond to that suggestion?
THE PRESIDENT: Well, I think people would not want a
person to step aside in a rumor, particularly if the rumor is
baseless. And the process -- what the problem is -- the process is
taking a little longer than I would like, and yet I think the Senate
has got to do what they're doing -- looking at these allegations very
carefully. But you know, as I said here at this same podium a while
back, the American people are basically fair. And if these
allegations prove to be allegations, without fact behind them, I
think the people are going to say wait a minute, what went on here,
how come it was all this -- we read this one day and then kind of a
puff of smoke the next. And so, I don't think in your substantive
question though, that if it proves -- if the Senate committee gives
its endorsement to the Senator, particularly after all of these
allegations, that there is any danger at all of damage to his
credibility or his ability to do the job.
Q
Mr. President, there are new and substantive
allegations that Senator Tower lost control over the highly
classified security documents and computer disks that were used in
Geneva under his watch. If those allegations prove to be founded,
would you then withdraw his nomination?
THE PRESIDENT: I would not answer hypothetical questions
of that nature. You're telling me something that I haven't heard
before. And we did have access to FBI reports. So if this matter is
now before the Congress, let them investigate it. But I can't go
into a hypothesis. All I would be doing would be adding to I think
speculation that is not helpful at this juncture.
I
But, sir, will you pursue these allegations in the
Executive Branch? Are you going to track what the FBI is looking
into? Are you going to personally surveil these kinds of allegations
yourself?
THE PRESIDENT: Every rumor and every innuendo, no. But
if you're making -- if there's some substantive allegation of this
nature, of course it would concern me.
I
Mr. President, back to S&Ls if we might, millions of
-- (laughter) -- millions of Americans save alternatively. That is
they save in mutual funds, stocks, and that kind of thing. As I read
it, you've now outlined a plan that places a lot of the S&L bailout
on the backs of the general treasury. How fair is that?
THE PRESIDENT: We've got a major problem and something
has to be done. And this is the fairest system that the best minds
in this administration can come up with. And so I again would ask
you to ask the specifics of the treasury burden, to the Chairman of
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the Federal Reserve, or the Secretary of the Treasury, ask how they
see that. But look, as I've said, there is no easy answer to this.
All I want to do is make a sound proposal, work to put it into
effect, and have that proposal such that the country won't have to
face this problem again.
Q
Mr. President, you said you dropped the deposit fee
idea, but this plan you've given us has an increase in premiums that
may be paid by consumers, as well as a large amount of taxpayers
funds. Isn't that the same thing -- consumers and taxpayers are
still going to have to pay the price for this?
THE PRESIDENT: Well, as I indicated earlier on, there is
no guarantee of passing this on to the consumer, nor is there a
guarantee it won't be passed on. But this arrangement has been there
since -- for 50 years, and you might argue whether it's been passed
on or not. I just don't know, I haven't seen the flow through in the
industry. But nothing is without pain when you come to solve a
problem of this magnitude.
I
Mr. President, you've talked to several members of
Congress in various receptions and dinners and personal conversations
over the past couple of weeks, and in many of them you have discussed
this -- your plan for this problem. What is your feeling of the
reception that it's going to get on Capitol Hill and of the selling
job that awaits you now to get it passed?
THE PRESIDENT: We may have a big selling job, but I've
been encouraged so far with the spirit epitomized by the members of
Congress, particularly at the joint leadership meeting the other day.
We didn't go into every detail of this. These plans were still being
formulated and I wanted to get their views. I was encouraged by what
Bill Seidman told me earlier on about how he -- what he felt the
receptivity of the plan will be. But I don't think it's fair to the
Congress to say that they have signaled to me that they are going to
be enthusiastic on this plan, although I hope they are.
I
Mr. President --
THE PRESIDENT: I'm going to take about three more and
then turn this over to these gentlemen here who are prepared to go
into as much detail as you want.
I
Mr. President, these allegations that surround Tower
now, at least variations on the theme, surfaced early in the
transition -- allegations of womanizing and taking money from defense
contractors -- that sort of thing. Have you satisfied yourself that
he is still the nominee you want? Can you give us at this time a
full-hearted endorsement of Tower?
THE PRESIDENT: Yes, I can and I will right now because
some of the very same allegations that were floated that long ago
apparently have been looked at and examined by the best possible
examiners -- and I'm talking about the FBI -- and found to be
groundless. So therefore I'm not about to change my view. If
somebody comes up with facts, I hope I'm not narrow-minded enough
that I wouldn't take a look. But I am not going to deal in the kinds
of rumors that I've seen reported and then knocked down and then
reported and then knocked down.
Q
Mr. President --
THE PRESIDENT: One -- two to go.
2
There have been hints that Gorbachev may propose
steps to diffuse the situation in Central America. I wonder if you
see the possibility of superpower deals in Central America, and if
so, what -- if you could suggest what would be acceptable for you?
THE PRESIDENT: I don't know about a deal, but I can see
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a possibility of cooperation in Central America because I would like
the Soviets to understand that we have very special interests in this
hemisphere, particularly in Central America, and that our commitment
to democracy and to freedom and free elections and these principles
is unshakeable, and I don't think they really have substantive
interests in this part of the world -- certainly none that rival
ours. So I would like to think they would understand that and there
are so many areas where we could demonstrate a new spirit of
cooperation, and this would clearly be one of them. So I'd like to
think that is the way that the matter would be approached by the
Soviets.
Yes, follow-up.
I
If I could follow up and ask you whether an
understanding on Central America -- whether you'd be willing to
include abandonment of aid to the Contras as part of such an
understanding?
THE PRESIDENT: I wouldn't make a deal on that with the
Soviets, nor would that come up. I don't believe we'd ever have a --
I can't see a situation of that nature arising, knowing as I do
what will be negotiated and discussed with the -- so I think that's
so hypothetical as to not even be a possibility of any kind.
Yes, Charles. And then I do have to run.
I
Mr. President, we still don't know what the
taxpayers' burden is in here. Out of this $40 billion, it says first
from S&L funds and the shortfall from Treasury funds. How big is it,
and have you, in going through your budget had to knock out some
things to pay for this?
THE PRESIDENT: We've had to knock out a lot of things on
the overall budget for a lot of different reasons. But I'd like to
leave this for Dick, for the questioning, to give the specific
amounts. It is shared, as I've indicated, and he can give you the
amounts that are involved.
Listen, thank you all very much, and now I'm going to
turn this over to Secretary Brady. And then in order I guess they 11
refer to each of these others.
I
Mr. President, one more word for the small --
2
-- seats back here, Mr. President?
THE PRESIDENT: What was that substantive question?
(Laughter.)
Q
In the back -- we didn't see you get back in this
area.
THE PRESIDENT: We didn't get that far back, no, but if
there's been an egregious offense to those in the back benches, I
will take one parting question. And inasmuch as you raised it, fire
away.
Q
Thank you very much, sir. Back on the ethics issue,
a couple of
THE PRESIDENT: Mindful that the last questions always
does get you in great trouble -- (laughter) -- go ahead.
I
Your perspective nominees -- one of your perspective
nominees and your counsel have just recently changed their minds on
matters that would have violated the ethics rules under the Reagan
administration. Did you have difficulty in getting the word out that
times would be tougher under your administration?
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THE PRESIDENT: No, I don't think SO. For example, if
you're referring to the Boyden Gray matter, which I think you are,
that matter was reviewed every single year by the Office of
Government Ethics, and he was deemed in compliance every single year.
But now we've got a new ballgame here. He's the General Counsel here
in the White House and I'm the President, and I've set out
rhetorically the highest possible standards and we're trying to back
that up by findings from this commission. And so I do think that
we've got to be very careful about perceptions of impropriety when it
comes to conflict of interest. Not rumors or innuendos of one sort
or another. I don't think you can -- I should deal in those things.
But when it comes to perceived conflicts of interest, I'd like our
people to bend over backwards.
And I think that's what has happened in both the question
of Lou Sullivan, whether he's entitled to -- all he did was ask, am I
entitled to continue these arrangements with this small university.
And all Boyden did, in my view now, is to try to go a step beyond
what the government ethics office has said to avoid the perception of
impropriety. But -- so I think it might be different now. I have to
approach it differently as President. Not that you have lower
standards, but I just think that again this whole question of
perception we've got to look at it very, very carefully. But I want
to be fair. I do not want to have the loudest charge, no matter how
irresponsible, be that that sets the standards. We've got to achieve
more objective standards. And that's why I'm putting a lot of faith
in the -- hope to put a lot of faith in the findings of Judge Wilkey
and former Attorney General Griffin Bell. And they will be looking
at all these matters in terms of reality, and then, to some degree
I'm sure, in terms of perception. So what might be legal and might
be perfectly sound ethically might have to be altered given this new
approach because of perception. It's a delicate one. I don't want
to have the standards set in such an irresponsible way that good
people just throw up their hands and say, look, who needs that kind
of grief, who needs it, why should I have to give up all my whatever
it is -- a health plan from the XYZ company. And yet, on the other
hand, we're in a different time now. We're in a time when we've got
to try to set these standards as high as possible. So I think Dr.
Sullivan did the right thing in asking what was proper. I think
Boyden Gray did the correct thing every year in asking what was
proper and reviewing his own personal holdings in a family company
with the Ethics Office, but now taking another step because of
perception in this case.
So we've got to reach -- we've got to work with these
individuals to find the proper answer and we've got to work with the
commission to try to codify these standards.
Q
Sir, by following, you said during the campaign very
clearly that your staffers would not take outside income. I wonder
why they need a legal opinion to understand that?
THE PRESIDENT: They had a legal opinion saying it was
perfectly proper from this family company, and so now we're changing
that and saying, look, there is this different perception problem
here in this new era, so let's bend over as far backwards as we
possibly can to -- you know, to recognize that.
Thank you all very much.
Q
What about leveraged buy-outs, Mr. President?
THE PRESIDENT: There's your LBO man right there.
THE PRESS: Thank you.
END
1135 P.M. EST
Davis/Wallace
April 19, 9 a.m.
Title: Texas
Draft: One
PRESIDENTIAL REMARKS: TEXAS STATE LEGISLATURE
CAPITOL, AUSTIN
(Date -- T.B.D.)
((It's a good thing this isn't Bill Clement's birthday
From where I'm standing, another Plaid Day in the Texas
Legislature could blind a fella.))
In all sincerity, happy belated birthday Bill
Lieutenant Governor Bill Hobby, it's great to see you again.
Speaker Gib Lewis, distinguished legislators, fellow Texans,
thank you
Barbara and I are delighted to be back in
Austin, with so many of our friends
I will want to discuss a few issues facing Texas and all of
America. But before I do, let me say a few words about what it
means to me to be a Texan.
Aside from the former kingdom of Hawaii, Texas is the only
nation to have to reconcile itself to being a state. But, like
Hawaii, we will never reconcile ourselves to being ordinary.
From the Pecos to the Pedernales, from the rapids of the Rio
Grande to the broad expanse of the muddy Red River, there is no
place on earth like Texas
2
Nor is there another capital in America quite like this one,
a rose-tinged granite that blushes when the sun is low. And,
this being Texas, we had to build a capital that is exactly one
foot taller than the one in Washington. I find this appropriate.
Texas certainly stands a little taller in the heart of this
President
Perhaps for this reason, Larry McMurtry is one of my
favorite writers. In Lonesome Dove, he describes the mythic
Texas, and conjures that sense of place we all know so well. I
am awed by a man of letters who can convincingly adopt the voice
of cowboys -- men whose only schooling was in dodging bullets,
whose only lessons were in how to rustle cattle.
But I first set out for Texas not on horseback, but in a
crimson red Studebaker with wrap-around windows and lots of
chrome. More than forty years later, that trip is still a vivid
memory -- the lonesome road, a neon Pearl Beer sign appearing in
the desert twilight like an apparition. Stopping at a cafe, I
didn't know if a chicken fried steak was a chicken fried like a
steak, or a steak fried like a chicken
Still, Barbara and I settled in Texas, as did so many before
us. We raised five children, built a business. And in that span
of forty years, I watched this state grow into greatness. The
3
Texas of the epic movie Giant seemed almost ordinary in the
fifties, with bluejeaned millionaires as common as cactus in
Odessa and Midland. It has been noted that the rude wealth of
merchants preceded the Renaissance of Michelangelo. I'm no
historian, but in my lifetime I have seen the oil wealth of West
Texas finance the building of great cities, and the expansion of
first-class land grant colleges -- the origins of a Texas
Renaissance, if you will. The energy business made Texas what it
is today -- the Third Coast of the United States.
This Texas Renaissance lasted for years, even decades. But
you also know the rest of the whole sad story -- oil that became
cheaper than fancy mineral water, skylines of empty buildings,
expensive homes to be had for monthly payments, and thousands of
laid-off workers.
Someone once said that Texas is a state of mind. That could
be true, but a philosopher also told us that a state is a body of
free men and women, united to enjoy common rights and advantages.
If that is so, it follows that the same free men and women join
together in the face of adversity.
Strong men and women are challenged by hard times, and I
believe that Texans have proven that
4
Now, I am no cowboy. I pitch horseshoes, but I don't ride
broncs. But an old saying goes that there never was a horse that
hasn't been rode, and never was a man who hasn't been throwed. I
guess Texans have proven that, too.
The cowboys have a term for the most dangerous and cunning
bronco of all: They call it a "sunfisher." These broncos will
rebel against a rider by adopting a motion not unlike the sunfish
of the Gulf -- a full-force leap into the air, back arched high,
flank twisting the rider to the left, head and upper torso
twisting the rider to the right, in an attempt to tear him apart.
Let me suggest that in the 1980s, the whole state of Texas feels
like it has been on just such a ride
When a rider is thrown, he can do one of two things. He can
slink away and never again attempt another act of horsemanship.
Or, he can dust himself off, put one boot in the left stirrup,
throw the other boot over, and get firmly back into the saddle.
I won't kid you. There may be a few more bumps and bruises
ahead. But make no mistake, Texas is back in the saddle again
State unemployment has dipped to its lowest level in four
years, signaling the diversification of the Texas economy. In
1970, the energy sector accounted for nearly 25 percent of state
output. Last year, it accounted for only 11.4 percent. And yet
5
Texas has regained the 207,000 jobs it lost from 1986 to 1987,
with employment in plastics, aircraft, electronics, missile and
space manufacturing, and computer programming leading the way.
Dallas leads in defense technology; Houston in biomedical
research; Austin, in microelectronics.
Another sign that Texas is becoming a world center of
technology is the selection of Ellis County as the site of the
Superconducting Super Collider
When built, the SSC will
enable us to study elemental particles with names like quarks,
mesons and neutrinos. I can understand how some people just
can't see a practical side for America to invest billions of
dollars in such an arcane field of study.
Well, as Tom Luce, chairman of the Texas National Research
Laboratory Commission said that with a little imagination, you
can: "conclude that future research in the field of high energy
could some day help us conquer cancer." Or discover a way to
boost the amount of information on a microchip. Or answer
questions that eluded Einstein, giving us a glimpse of what the
cosmos was like at the first trillionth of a second into
Creation. The SSC is a key to understanding our universe, and to
developing the technologies and industries of the 21st Century.
Let me assure you, I will back the construction of the SSC with
all the powers of the presidency
6
And let me also salute you, the members of the Texas House
and Senate, and the voters of this state, for having the vision
to take an early lead on this project
Still, no matter how diversified and high-tech Texas
becomes, a strong domestic energy industry is important to the
future of this state and all of America. I find it disturbing
that nearly 50 percent of America's oil is imported. As Bill
Clements says, this "cannot be safely shunted aside as merely a
Texas or a producing state problem."
The need for domestic energy production is especially
pressing in the aftermath of the wreck of the Exxon Valdes off
Alaska. I am as disgusted as you are by the reports from Prince
William Sound. I want to use federal resources intelligently in
the clean-up effort, and to work with industry to try to prevent
another tragedy. But if we shut down Alaska, we would not do
anything to protect the environment, if a foreign tanker wrecked
off the coast of Louisiana or Texas. We would merely increase
our dependence on foreign oil. What a travesty it would be if
we, in the name of ecological protection, transferred our
domestic oil industry to foreign producers and tankers
To reduce our dependency, a return to high levels of
exploratory drilling is needed. I propose to restore the central
role of small producers in U.S. energy exploration with tax
7
credits and other incentives. And I want to do something else.
Texas has a 65-year supply of one of the cleanest forms of energy
known to man -- natural gas. I call on Congress, at long last,
to fully decontrol the natural gas industry, and to do so this
year
I know there are still a few dark clouds on your economic
horizon. I know that you are concerned about the continuing
crisis in savings and loan institutions. I have asked for
measures to restore these institutions to financial health. And
I have asked for a $50 million appropriation for the Justice
Department, so that those who willfully abuse the trust of small
savers, and try to play Monopoly, will pass go -- straight to
jail
The Senate has acted expeditiously. I call on the
House of Representatives to pass a responsible bill to meet this
crisis as soon as possible.
This state is still mired in some of the problems of the
recent past. But the way to a bright and promising future is
clear -- Texas will increasingly rely on a diversifed economy,
and become a birthplace for the technologies of the next century.
Texas has turned around in no small measure because of the
leadership of Bill Clements, Senators Gramm and Bentsen, and the
men and women of the Texas Legislature. There is again a feeling
in Texas that anything is possible -- who knows, the Rangers
8
might even win the World Series
In short, Texas is starting
to feel like its old self again.
As we face our future in the White House, Barbara and I take
with us memories of people and places from a place that has been
home for most of our lives.
We remember driving the kids across Texas, and slowing down
so we could take in the fields of bluebonnets and Indian
paintbrush.
We remember the people of Houston, many of them mature and
skeptical, but who nonetheless listened to a green young man and
sent him to Congress.
And I remember Lyndon Johnson at his ranch, a retired
Democrat giving advice to a young Republican, his long, white
hair blowing in the gentle Hill Country breeze like the mane of
an old lion.
Bar and I treasure all of this -- the sights and sounds of
half a lifetime, the trust of many friends, and the love of a
family. All this, we remember when we come back. And for this
and so much more, we thank God that we are Texans
9
Let me thank you for inviting us back to Austin. God bless
you. And God bless the United States of America.
#
#
#
BOOKS
ALTHOR INDEX
88. 30.00 (ISBN 0-387-
Dobbs, Betty J. The Foundation of Newton's
--Texas & Southwestern Lore. LC 33-1131. (Texas
Dobler, Conrad & C
18.
Alchemy: or, "The Hunting of the Greene Lyon".
--The Three-Day Week-Offshoot of EDP
Frank. Apache Gold & Yaqui Silver. (Illus.).
Folklore Society Publications Ser.: No. 6). 246p.
288p. 1988. 17.95
Nutrition Reviews Ser.).
LC 74-31795. (Illus.). 320p. 1976. 49.50 (ISBN 0-
918230-04-7). Barnstable.
Operation. (Illus.). 1976. pap. 0.50 (ISBN )
1985. pap. 9.95 (ISBN 0-292-70381-3). of
1982. Repr. of 1927 ed. 13.95 (ISBN 0-87074-044-
Putnam Pub Gro
0 (ISBN 0-387-17045-6).
521-20786-X). Cambridge U.Pr.
Dobell & Mansbridge. The Social Policy
X). SMU Press.
Dobler, Dean D. & I
(Illus.). 1950. 14.95 (ISBN 0-
The Foundations of Newton's Alchemy: Or "The
-Tone the Bell Easy. LC 33-1135. (Texas Folklore
Materials Manage
utrition & Later
Hunting of the Greene Lyon". LC 74-31795.
Canada. 111p. 1986. pap. text ed. 8.00% Process #
Little.
Lilly Tex 253p. Pr. 1981. pap. 7.95 (ISBN
Society Publications: No. 10). (Illus.). 200p. 1965.
(Management &
7. 68.00 (ISBN 0-12-
(Cambridge Paperback Library). (Illus.). 300p.
88645-030-6, Pub. by Inst Res Pub Canaday (158% &
Repr. of 1932 ed. 12.95 (ISBN 0-87074-045-8).
1984. text ed. 45
Brookfield Pub Co.
1983. pap. 18.95 (ISBN 0-521-27381-1).
Dobell, Bertram. Catalogue of Books Printed
Tales of Lost & Buried
SMU Press.
McGraw.
ctational Infertility. (Nestle
Cambridge Pr.
Dobbs, Charles M. The Truman Doctrine. 1988. price
Private Circulation. LC 66-25693. 244p
of the Southwest. (Illus.). 367p. 1982.
Dobie, J. Frank, et al, eds. Coyote Wisdom. LC 40-
Dobler, Donald W.,
Vol. 9). 170p. 1985. text
1-100-2). Raven.
Treasures of 1931 ed. lib. bdg. 50.00 (ISBN 0-89987-
499. (Texas Folklore Society Publications: No. 14).
Dobler, Lavinia. Cus
not set (ISBN 0-89874-988-3). Krieger.
Repr. Gale. of 1906 ed. 35.00x (ISBN
(Illus.). 304p. 1965. Repr. of 1938 ed. 16.95 (ISBN
World. LC 62-82
gnancy: Eating for Two?
Dobbs, D. E. Cech Cohomological Dimensions for
60 (ISBN 0-12-218850-0).
Commutative Rings. LC 78-131545. (Lecture
-Laureate of Pessimism. LC 77-105781.
170-1) Darby Bks.
Children: Tales of Lost Mines & Buried
0-87074-046-6). SMU Press.
(Illus.). (gr. 7-12
Coronado's Treasures of the Southwest. (Barker Texas History
Mustangs & Cow Horses. 2nd ed. LC 65-3030.
0). Fleet.
Notes in Mathematics: Vol. 147). 1970. pap. 11.00
of 1910 ed. 18.50x (ISBN 0-8046-10134
Kennikat). Assoc Faculty
Ser.: No. 3). (Illus.). 351p. 1978. 17.95
(Texas Folklore Society Publications: No. 16).
--1 Didn't Know T
& Other Neural Tube
BN 0-12-218860-8). Acad
(ISBN 0-387-04936-3). Springer-Verlag.
Dobbs, Dan B. Problems in Remedies. 137p. 1974.
-Laureate of Pessimism. 1973. Repr. of 1910 ed
8.50 (ISBN 0-8274-1657-1). R West.
(ISBN Center 0-292-71050-X); Pr. pap. 9.95 (ISBN 0-292-
(Illus.). 442p. 1965. Repr. of 1940 ed. 16.95 (ISBN
(ISBN 0-590-03
0-87074-047-4). SMU Press.
--The Land & Peor
pap. 7.95 (ISBN 0-314-28158-4). West Pub.
71052-6). People. (Illus.). 1964. 16.95 (ISBN 0-316-
U
of
Tex
--Sidelights on Charles Lamb. LC 76-43277.
Straight Texas. LC 77-8134. (Texas Folklore
3741. (Portraits
cientific Studies in Mental
--Torts & Compensation: Personal Accountability &
Society Publications: No. 13). 360p. 1984. Repr. of
5-9). 1972. PLB
2. 1984. text ed. 110.00x
Social Responsibility for Injury. LC 84-26919..
Repr. of 1903 ed. lib. bdg. 32.00 (ISBN 0-8416
(American Casebook Ser.). 955p. 1985. text ed.
18793-3). People. (Illus.). 317p. 1981. pap. 8.95 (ISBN
Little.
3702-5). Folcroft.
1937 ed. 16.95 (ISBN 0-87074-164-0). SMU Press.
Jr Bks). HarpJ.
heridan Med Bks.
the Book of Revelation:
Dobell, Bertram, ed. see Leopardi, Giacome.
of Tex Pr.
--Texian Stomping Grounds. LC 41-4871. (Texas
-National Holiday
Folklore Society Publications: No. 17). 1967. Repr.
16525. (Around
73-22715. (Studies in the
31.95 (ISBN 0-314-87033-4). West Pub.
Dobell, Bertram, ed. see Shelley, Percy Bysche,
1960. 15.95 (ISBN 0-316-
1975. o.p. 12.50 (ISBN
Dobbs, David & Hanks, Robert. A Modern Course on
the Theory of Equations. LC 80-13487. 1980.
Dobell, Bertram, jt. ed. see Wilson, J. D.
of 1941 ed. 11.95 (ISBN 0-87074-048-2). SMU
1968. 12.95 (IS
18794-1). You a Tale: An Anthology. (Illus.). 378p.
Little.
Dobell, Peter. Travels in Kamtchatka & Siberia:
Press.
Dobler, Max. lono
(ISBN 0-8173-7321-7).
15.00x (ISBN 0-936428-03-1). Polygonal Pub.
In the Shadow of History. LC 80-21632. (Texas
a Narrative of a Residence in China. LC78-
4373. 392p. 198
Dobbs, E. R. Electricity & Magnetism. (Student
pap. 10.95 (ISBN 0-292-73821-8). U of Tex
Folklore Society Publications: No. 15). 192p. 1980.
115529. (Russia Observed Ser., No. 1). 1970.
Pub. by Wiley-
The Gold's Gym
Physics Ser.). (Illus.). 128p. 1984. pap. 9.95x
Repr. of 1939 ed. 12.95 (ISBN 0-87074-173-X).
(ISBN 0-7102-0157-5). Routledge Chapman &
Repr. of 1830 ed. 33.00 (ISBN 0-405-03021-9.
Dobler, Patricia. T
6p. 1985. pap. 3.95.
Ayer Co Pubs.
Frank Dobie on Libraries. (Illus.). 8p. 1970. pap.
SMU Press.
(Brittingham
Pr
Hall.
(ISBN 0-87959-031-9). U of Tex H Ransom
Dobie, James, ed. Happy Hunting Ground. LC 74-
enner, Bruce.
Dobell, S., jt. auth. see Brooke, G.
(ISBN 0-299-10
chwarzenegger, Arnold.
Dobbs, Farrell. Revolutionary Continuity: Birth of the
Communist Movement, 1918-1922, Vol. 2. Barnes,
Dobelstein, Andrew J. & Johnson, Ann. Serving Older
a C. Duval: First Texas Man of Letters: His
32310. (Texas Folklore Society, Publication Ser.:
10834-1). of
No. 4). pap. 41.00 (2027001). Bks Demand UMI.
prague, Ken.
Jack, ed. LC 80-84850. 1983. lib. bdg. 22.00
Adults: Policy, Programs, & Professional Activities.
& Some of His Unpublished Writings. LC 40-
Dobler, Peggy R.
(Illus.). 272p. 1985. text ed. write for info. (ISBN
Dobie, Jeanne. Making Color Sing. (Illus.). 160p.
ed Comparative Study of
4.95 (ISBN 0-6
(ISBN 0-913460-92-3); pap. 8.95 (ISBN 0-913460-
0-13-806860-7). P-H.
$152 (Illus.). 108p. 1965. Repr. of 1939 ed. 12.95
1986. 27.50 (ISBN 0-8230-2993-X). Watson-
hism, 2 vols. (Illus.).
Dobler, Roslyn. 0
ISBN 0-89266-611-0).
93-1). Anchor Found.
Dobelstein, Andrew W. Politics, Economics & Public
(ISBN 0-87074-038-5). SMU Press.
Guptill.
Legends of Texas, 2 vols. Incl. Vol. 1. Lost Mines &
160p. 1986. 10
--Teamster Bureaucracy. LC 76-52771. (Illus.). 1977.
23.00 (ISBN 0-913460-52-4); pap. 8.95 (ISBN 0-
Welfare. 2nd ed. (Illus.). 240p. 1986. pap. text
Dobie, M. R., tr. see Jarde, Auguste.
Career Horzns
ributions of
25.00 (ISBN 0-13-684101-5). P-H.
Buried Treasures. 132p (ISBN 0-88289-085-9);
Dobie, M. R., tr. see Toutain, Jules.
VGM Career F
Historical Growth of
913460-53-2). Anchor Found.
--Teamster Politics. LC 75-17324. (Illus.). 256p.
Dobereiner, Johanna & Pedrosa, Fabio 0. Nitroges-
Vol. 2 Pirates Gold & Other Tales. 144p (ISBN 0-
Dobieski, Alex. Basic Principles of Computer Systems.
Doblhofer, Ernst.
spects. (Illus.). 103p.
Fixing Bacteria in Nonleguminous Crop Plants LC
$8289-086-7). 1975. pap. 4.95 ea. Pelican.
(Illus.). 555p. (Orig.). 1985. pap. 10.95x (ISBN 0-
LC 71-122076
(ISBN 0-89901-111-X).
1975. 23.00 (ISBN 0-913460-38-9); pap. 8.95
(ISBN 0-913460-39-7). Anchor Found.
87-12901. (Brock-Springer Series in Contemporary
The Longhorns. (Illus.). 1941. 17.95 (ISBN 0-316-
933039-01-8). Fountain Valley Pub.
37.50x (ISBN
Bioscience). (Illus.). 158p. 1987. 37.00 (ISBN
18796-8). Little.
Dobija, Jane, jt. auth. see Brereton, John.
Lider. Molina, S. P., tr.
--Teamster Power. LC 73-78115. 256p. 1973. 23.00
910239-11-8). Sci Tech Pubs.
The Longhorns. LC 79-67706. (Illus.). 440p. 1980.
Doblin, Alfred. Be
Dobin, Denny, ed. Microcomputer Applications in
Franz Biberko:
rning to Lead. 126p.
(ISBN 0-913460-20-6. Dist. by Path Pr NY); pap.
Dobereiner, Peter. The Book of Golf Disasters. LC
pap. 9.95 (ISBN 0-292-74627-X). U_of Tex Pr.
Occupational Health & Safety. LC 86-27676.
The Mustangs. (Illus.). 1952. pap. 8.95 (ISBN) 0-
(Illus.). 150p. 1987. 42.50 (ISBN 0-87371-078-9).
11.95 (ISBN 0
SBN 0-311-17013-7).
8.95 (ISBN 0-913460-21-4). Anchor Found.
--Teamster Rebellion. LC 78-186690. (Illus.). 192p.
83-45491. (Illus.). 180p. 1984. 12.95 (ISBN
--Kart & Rosa: N
11453-2). Atheneum.
316-18798-4). Little.
Lewis Pubs Inc.
to Lead. LC 68-12342.
1972. 20.00 (ISBN 0-913460-02-8, Dist. by Path
--The Book of Golf Disasters. LC 85-45187.
-The Mustangs. (Illus.). 392p. 1984. pap. 8.95 (ISBN
Revolution. W
Dobin, Joel C. The Astrological Secrets of the Hebrew
SBN 0-8054-3208-6).
Pr NY); pap. 7.95 (ISBN 0-913460-03-6). Anchor
192p. 1986. pap. 6.95 (ISBN 0-06-097017-0,
0-292-75081-1). U of Tex Pr.
Sages: To Rule Both Day & Night. LC 77-8288.
16461. 560p.
Found.
7017, PL). Har-Row.
-Out of the Old Rock. 247p. 1982. pap. 7.95 (ISBN
256p. 1983. pap. 9.95 (ISBN 0-89281-052-1).
pap. 10.95 (IS
Pub.
-9530. 1960. 11.95
Dobbs, Farrell, intro. by see Trotsky, Leon.
--Golf Rules Explained. (Illus.). 160p. 1988. 12.95
0-292-76013-2). U of Tex Pr.
Inner Tradit.
oadman.
Dobbs, Horace. Classic Dives of the World. (Classic
(ISBN 0-7153-9227-1, Pub. by David & Charles
--Prefaces. 212p. 1982. pap. 7.95 (ISBN 0-292-76461-
Dobinson, Charles H., ed. Education in a Changing
Men Without
Travel Ser.: No. 6). 144p. (Orig.). 1987. 23.95
World. facs. ed. LC 78-117783. (Essay Index
Phyllis, trs. fr
Gold. LC 83-90001.
Pub England). Sterling.
8). U of Tex Pr.
BN 0-9610540-0-X). J
(ISBN 0-946609-43-8, Pub. by Oxford III Pr).
Haynes Pubns.
--Steal from the Pros: To Improve Your Golf. (lilus.)
Rattlesnakes. 1965. 16.95 (ISBN 0-316-18799-2).
Reprint Ser). 1951. 17.00 (ISBN 0-8369-1801-0).
Repr. of 1937
96p. 1989. pap. 11.95 (ISBN 0-09-173697-8, Pub.
Little.
Ayer Co Pubs.
Fertig.
G. W.
--The Great Diving Adventure. (The Great
by Century Hutchinson). David & Charles.
Rattlesnakes. 207p. 1982. pap. 7.95 (ISBN 0-292-
Dobkin, A. B., ed. Developments of New Volatile
--A People Betr:
Camaro Factbook,
Adventure Ser.). (Illus.). 256p. 1986. 13.95 (ISBN
Dobereiner, Peter, jt. auth. see Palmer, Arnold.
77023-5). U of Tex Pr.
Inhalation Anaesthetics. (Monographs in
Revolution. VI
1984. 19.95x (ISBN 0-
0-946609-23-3, Pub. by Oxford III Pr). Haynes
Doberkat, E. E. Stochastic Automata: Stability,
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Anaesthesiology Ser.: Vol. 6). 1979. 105.25 (ISBN
25133. 656p.
IS.
Pubns.
Nondeterminism, & Prediction. (Lecture Notes
18790-9). Little.
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Fromm Intl P
$ Factbook of the 1963-
--Save the Dolphins. 128p. 1981. 14.95 (ISBN 0-285-
Computer Science Ser.: Vol. 113). 135p. 1981.
**Some Part of Myself. LC 79-67708. (Illus.). 292p.
Dobkin, Bruce H. Brain Matters. 1988. pap. 4.50
--Tales of Lon
tte Vues Factbook Ser.).
62437-7, Pub. by Souvenir Pr). Intl Spec Bk.
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1980. pap. 9.95 (ISBN 0-292-77558-X). U of Tex
(ISBN 0-671-64594-3). PB.
Rita, trs. LC
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Dobbs, Jane & Barrett, Ann. Practical Radiotherapy
-Brain Matters: Stories of a Neurologist & His
0-88064-016-
Doberstein, Dick. Communications Made Easy for
Planning: Royal Marsden Hospital Practice.
Pilots. (Illus.). 78p. 1980. pap. text ed. 6.95x
-Tales of Old-Time Texas. 1955. 16.45 (ISBN 0-316-
Patients. 1986. 17.95 (ISBN 0-517-55983-8).
Fromm Intl
as, Peggy P.
(Illus.). 256p. 1987. pap. text ed. 29.95 (ISBN 0-
(Simplified). Aviation.
18801-8); pap. 8.95 (ISBN 0-316-18802-6). Little.
Crown.
Doblins, Jim &
Chinese Sketches.
683-13017-X, Pub. by E Arnold UK). Williams &
--Communications Made Easy for Pilots. 1984. 6.95
--Tales of Old-Time Texas. (Illus.). 350p. 1984. pap.
Dobkin, David, et al, eds. Applied Cryptology,
A Novel. 16
X (Pub. by Han-Shan
Wilkins.
(ISBN 0-9607866-3-5). Simplified Reg.
9.95 (ISBN 0-292-78069-9). U of Tex Pr.
Cryptographic Protocols, & Computer Security
03-9). UCS
k.
Dobbs, Jeannine, et al. Three Some Poems. LC 75-
Texan in England. (Illus.). 301p. 1980. pap. 7.95
Dobneck, Johan
--Navigation Made Easy for Pilots. (Illus.). 98p.
Models. LC 83-15548. (Proceedings of Symposia
0 Class. rev. 4th ed.
23819. 88p. 1976. pap. 7.95 (ISBN 0-914086-11-
1976. pap. text ed. 6.95x (Pub. by Simplified).
(ISBN 0-292-78034-6). U of Tex Pr.
in Applied Mathematics: Vol. 29). 204p. 1983.
124.40x (ISE
Mike, eds. (Illus.).
1). Alicejamesbooks.
Aviation.
Tongues of the Monte. 319p. 1980. pap. 9.95
pap. 26.00 (ISBN 0-8218-0041-8). Am Math.
Pubs Englan
00 (ISBN 0-9605774-0-
Dobbs, Katy. My First Gamebook. (My First Books
--Navigation Made Easy for Pilots. Date not
(ISBN 0-292-78035-4). U of Tex Pr.
Dobkin, James A., et al. International Joint Ventures.
Dobney, Freder
Ser.). (Illus.). 6p. (ps-3). 1986. 5.95 (ISBN 0-
text ed. 6.95 (ISBN 0-9607866-2-7). Simplified
Vaquero of the Brush Country. (Illus.). 320p.
400p. 1986. text ed. 195.00 (ISBN 0-318-19472-4).
Dobo. Fifth Tih
tfolio Theory &
89480-945-8). Workman Pub.
Reg.
1981. pap. 9.95 (ISBN 0-292-78704-9). U of Tex
Fed Pubns Inc.
Chemistry:
76p. 1984. 34.95x
Dobbs, Larry & Farr, Donald. How to Restore Your
--Regulations Made Easy for Instrument Pilots. Date
Pr.
Dobkin, Kaye. The Red Room. 160p. (Orig.). (gr. 7
963-05-3430
14.95x (ISBN 0-
Mustang. 1980. pap. 14.95 (ISBN 0-941596-01-X).
not set. pap. text ed. 6.95 (ISBN 0-9607866-1-9)
The Voice of the Coyote. LC 49-8879. (Illus.). XX,
up). 1982. pap. 1.95 (ISBN 0-590-32441-1,
Hungary). II
ell.
Dobbs Pubns.
Simplified Reg.
386p. 1961. pap. 8.95 (ISBN 0-8032-5050-9, BB
Windswept). Scholastic Inc.
Dobo, Janos. P:
hen. Practical Financial
Dobbs, Larry, et al. Mustang Recognition Guide,
--Regulations Made Easy for Private Pilots. Date
109, Bison). U of Nebr Pr.
Dobkin, Marjorie H. Smyrna Nineteen Twenty-Two:
Symposium
1988. text ed. 75.00x
Nineteen Sixty Four-&-a-Half to Nineteen
set. pap. text ed. 6.95 (ISBN 0-9607866-4-3).
Dobie, J. Frank & Dykes, Jeff C. Forty Four Range
The Destruction of a City. LC 87-30994. 275p.
385.00x (IS
text ed. 24.95x (ISBN
Seventy-Three. LC 81-84075. (Illus.). 1981. pap.
Simplified Reg.
Country Books & 44 More Range Country Books.
1988. pap. 14.00 (ISBN 0-87338-359-1). Kent St U
(UK)). State
well.
text ed. 16.95 (ISBN 0-941596-00-1). Dobbs
Doberstein, J. W., tr. see Thielicke, Helmut.
35p. 1972. Repr. 15.00 (ISBN 0-88426-003-8).
Pr.
Dobosiewicz, I
ric Motion & Air
Pubns.
Doberstein, John W:, ed. Minister's Prayer Book:
Encino Pr.
Dobkin, Marjorie H., ed. The Making of a Feminist:
Malgorzata
for Students of
Dobbs, Leonard. Shakespeare Revealed. Kingsmill,
Order of Prayers & Readings. LC 85-16212. 512p
J. Frank, jt. auth. see Goddard, Ruth.
Early Journals & Letters of M. Carey Thomas. LC
Doboson, E. J.
79-952. (Environmental
Hugh, ed. 222p. 1984. Repr. of 1984 ed. lib. bdg.
1986. 12.95 (ISBN 0-8006-0760-0, 1-760).
Dobie,
J. Frank, ed. Guide to Life & Literature of the
79-88605. (Illus.). 314p. 1980. 9.95x (ISBN 0-
Dobovsky, jt.
IS & Monographs).
35.00 (ISBN 0-89984-169-4). Century
Fortress.
Southwest: Revised & Enlarged in Both Knowledge
87338-232-3). Kent St Pr.
Dobozi, Istvan
471-21675-5, Pub. by
Bookbindery.
Doberstein, John W., jt. ed. see Lehmann, Helmut
& Wisdom. LC 52-11834. (Illus.). 232p. 1981.
Dobkin de Rios, Marlene. Visionary Vine:
Political Ec
Dobbs, Michael, et al. Poland, Solidarity, Walesa.
Doberstein, John W., tr. see Lehmann, Helmut T.&
15.95 (ISBN 0-87074-036-9); pap. 9.95 (ISBN 0-
Hallucinogenic Healing in the Peruvian Amazon.
(Soviet & E
Espiritual Y
(Illus.). 128p. 1981. 23.00 (ISBN 0-08-028147-8).
Doberstein, John W.
87074-037-7). SMU Press.
(Illus.). 161p. 1984. pap. text ed. 8.95x (ISBN 0-
279p. 1985
tr. from Eng. Orig.
McGraw.
Doberstein, John W., tr. see Thielicke, Helmut.
-Happy Hunting Ground. LC 74-32310. (Texas
88133-093-0). Waveland Pr.
E Sharpe.
tional Power. 171p.
Dobbs, Roland. Electromagnetic Waves. (Student
Dobhal, G. L. Development of the Hill Areas.
Folklore Society Publications: No. 4). (Illus.).
Dobkins, David H. & Kneller, Richard. Workbook for
Dobracyynski.
BN 0-8297-0705-0).
Physics Ser.). (Illus.). 128p. (Orig.). 1985. pap.
27.00 (ISBN 0-8364-2242-2, Pub. by Concept
164p. 1964. Repr. of 1925 ed. 12.95 (ISBN 0-
Speech Fundamentals. 128p. 1980. pap. text ed.
8.95 (ISB)
9.95x (ISBN 0-7102-0506-6). Routledge Chapman
India). South Asia Bks.
87074-149-7). SMU Press.
8.95 (ISBN 0-8403-2257-7). Kendall-Hunt.
Dobratz, Bett
notionnelle. Cosson,
& Hall.
Dobias, B., et al. New Developments, Vol. 56.
Legends of Texas. LC 76-17825. (Texas Folklore
Dobkowski, Michael & Willimann, Isidor, eds.
A.
lerie, tr. from Eng.
Dobbs, Stephen M., ed. Arts Education & Back to
(Structure & Bonding). (Illus.). 160p. 1984. 41.00
Society Publications: No. 3). (Illus.). 1964. Repr.
Research in Inequality & Social Conflict, Vol. 1.
Dobratz, Bett
ed. 2.25 (ISBN 0-8297-
Basics. 1979. pap. 15.00 (ISBN 0-937652-09-1).
(ISBN 0-387-13106-X). Springer-Verlag.
1924 ed. 16.95 (ISBN 0-87074-156-X). SMU
1988. 52.50 (ISBN 0-89232-745-6). Jai Pr.
E.
Natl Art Ed.
Dobie, Ann B. & Hirt, Andrew J. Comprehension
Press.
Dobkowski, Michael N., ed. Jewish American
Dobratz, Bett
pap. 0.75 (ISBN 0-
Dobbs, Zygmund. Keynes at Harvard. rev. & enl ed.
Composition: An Introduction to the Essay.
Bird, & Beast. LC 33-1132. (Texas Folklore
Voluntary Organizations. LC 84-10734. 716p.
A.
3.75 (ISBN 0-685-46997-2). Veritas.
ed. 528p. 1986. pap. write for info. (ISBN 0-02-
Society Publications: No. 8). (Illus.). 192p. 1965.
1986. 76.95 (ISBN 0-313-21204-X, RJA/).
Dobratz, Bet
Power. 160p. (Orig.).
Dobby, Alan. Conservation & Planning. (The Built
330320-4). Macmillan.
Repr. of 1930 ed. 12.95 (ISBN 0-87074-131-4).
Greenwood.
Dobree, Bon
)7-5136-1, Power Bks).
Environment Ser.). 173p. 1978. pap. 10.00 (ISBN
Dobie, Charles C. San Francisco Adventures. LC
SMU Press.
Dobkowski, Michael N. & Wallimann, Isidor, eds.
Repr. of
0-09-132271-5, Pub. by Hutchinson Educ).
101800. (Short Story Index Reprint Ser.). 1937.
Puro Mexicano. LC 75-26679. (Texas Folklore
Radical Perspectives on the Rise of Fascism in
2459-X.
pie's Disease. (Illus.).
Longwood Pub Group.
17.00 (ISBN 0-8369-3188-2). Ayer Co Pubs.
Society Publications Ser.: No. 12). 278p. 1980.
Germany, 1919 to 1945. 320p. 1988. 28.00 (ISBN
--Amateur
398-05317-0). CC
Dobbyn, John F. Injunctions. (Nutshell Ser.). 264p.
Dobie, Edith. Malta's Road to Independence.
Repr. of 1935 ed. 12.95 (ISBN 0-87074-041-5).
0-85345-757-3); pap. 12.00 (ISBN 0-85345-758-1).
1974. pap. 8.95 (ISBN 0-314-28423-0). West Pub.
15591. Repr. of 1967 ed. 77.00 (ISBN 0-8357-
SMU Press.
bdg. 15.0
Monthly Rev.
ride,M.W.
--As Their
--Insurance Law in a Nutshell. LC 81-7468.
9733-3, 2016210). Bks Demand UMI.
Rainbow in the Morning. LC 74-32243. (Texas
Towards the Holocaust: The Social & Economic
--The Political Career of Stephen Mallory White LC
30183.
brege du Surrealisme.
(Nutshell Ser.). 281p. 1981. pap. text ed. 8.95
Folklore Society Publications: No. 5). 208p. 1975.
Collapse of the Weimar Republic. LC 82-18388.
6-57119-3. M-6165).
(ISBN 0-314-59851-0). West Pub.
74-155605. (Stanford University. Stanford Studies
(Illus.). 440p. 1983. lib. bdg. 35.00 (ISBN 0-313-
(ISBN
--So You Want to Go to Law School. LC 76-19202.
SMU Repr. of 1926 ed. 12.95 (ISBN 0-87074-150-0).
--The Brok
in History, Economics, & Political Science: Vol.
Press.
22795-0, DHO/). Greenwood.
& Social Movements
1976. pap. 6.95 (ISBN 0-685-71466-7). West Pub.
Pt. 1). Repr. of 1927 ed. 24.50 (ISBN 0-404-
Lore. LC 33-1134. (Texas Folklore
Dobkowski, Michael N., jt. ed. see Wallimann, Isidor.
Compara
69. Repr. of 1919 ed.
Dobelis, M. C. Anonymous & Pseudononymous
Society Publications: No. 9). (Illus.). 208p. 1965.
Doble, G. H. Lives of the Welsh Saints. Evans. D.
1955 ed.
50963-0). AMS Pr.
0. Kelley.
Publications of Twentieth Century Authors. Date
Dobie, G. Vera. Alphonse Daudet. LC 74-19263.
Repr. of 1931 ed. 12.95 (ISBN 0-87074-042-3).
Simon, ed. 258p. 1984. text ed. 15.00x (ISBN 0.
Haskell.
he Counties Adjoining
not set. 16.95x (ISBN 0-918230-06-3). Barnstable.
1974. Repr. of 1949 ed. lib. bdg. 29.50 (ISBN
SMU Press.
7083-0870-8. Pub. by U of Wales). Humanities.
-Byron's
thwest Part of
--Bridging the Gap Between Computer Technicians &
0-384-12045-8).
Dobie, J. F. The Flavor of Texas. 176p. 1975. 12.50
8414-3712-2). Folcroft.
LC 34-1434. (Texas Folklore
Doble, Henry F., Jr. Medical Office Design: Territory
15.00
Users. (Illus.). 1976. pap. 0.50 (ISBN 0-918230-05-
Society Publications: No. 11). 1965. Repr. of 1933
& Conflict. 200p. 1982. 42.50 (ISBN 0-87527-243-
--English E
5). Barnstable.
15.00 (1:
(ISBN 0-8363-0130-7). Jenkins.
11.95 (ISBN 0-87074-043-1). SMU Press.
6). Green.