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Chicago Mercantile Exchange 12/10/91 [OA 8331] [2]
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Originally Processed With FOIA(s):
FOIA Number:
S
S
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection:
George H.W. Bush Presidential Records
Collection/Office of Origin:
Speechwriting, White House Office of
Series:
Speech File Backup Files
Subseries:
Chron File, 1989-1993
OA/ID Number:
13785
Folder ID Number:
13785-008
Folder Title:
Chicago Mercantile Exchange 12/10/91 [OA 8331] [2]
Stack:
Row:
Section:
Shelf:
Position:
G
26
22
1
3
CHICAGO MERCANTILE EXCHANGE
Minimum Performance Bond Requirements
and
Contract Specifications
Revised November 26, 1991
NOTES:
Contract specification information for all products follow performance bond requirement information.
For additional general information, call the CME Clearing House at (312) 930-3170
For Options and SPAN information, call (312) 648-3888
For margin changes, call a recorded message at (312) 930-8201
THIS DOCUMENT IS BASED ON INFORMATION THAT MAY CHANGE WITHOUT NOTICE. PLEASE CONSULT THE CME OR YOUR
BROKER IF YOU HAVE QUESTIONS. THIS DOCUMENT SHALL IN NO WAY BE CONSTRUED AS BEING THE OFFICIAL RULES OF THE CME.
CHICAGO MERCANTILE EXCHANGE
TM
SPAN Minimum Performance Bond Requirements
(SPAN refers to Standard Portfolio Analysis of Risk margining system)
CONTRACT SPECIFICATIONS NOW FOLLOW PERFORMANCE BOND REQUIREMENTS
Revised November 26, 1991
Changes since last revision (September 10, 1991):
Changes to SPAN initial and maintenance performance bonds for Deutsche Mark, Japanese Yen,
Swiss Franc, BP/DM XRate, DM/JY XRate, and DM/SF XRates, effective close of business November 26, 1991.
Changes to SPAN initial and maintenance performance bonds for calendar spreads for Feeder Cattle, Live Cattle,
Live Hog, Pork Bellies and Broiler Chicken futures, effective close of business November 26, 1991. Changes to inter-
commodity spreads for BP vs. SF, DM vs. SF, JY VS. AD and JY vs. SF, effective close of business November 26, 1991.
Addition of allowable spread between S&P 500 vs. Nikkei 225, effective December 9, 1991.
Changes to volatility scan range for Pork Bellies, Feeder Cattle, Deutsche Mark, Swiss Franc and Eurodollar.
LEGEND
I
- refers to Initial Performance Bond
M
- refers to Maintenance Performance Bond
S
- refers to Speculative Positions
H
- refers to Hedged Positions
MEM
- refers to CME Members
CBOE
- refers to Chicago Board Options Exchange members
PAGE 1
Agricultural Futures - SPAN
Performance Bond Requirements (Exchange Minimums)
OUTRIGHTS
OUTRIGHTS-
INTRA-COMMODITY
INTRA-COMMODITY
ALLOWABLE INTER-COMMODITY
DELIVERY MONTH
SPREADS
SPREADS-DEL MONTH
SPREADS
COMMODITY
SPEC
H/MEM
SPEC
H/MEM
SPEC
H/MEM
SPEC H/MEM
SPEC
H/MEM
Initial
Maint.
I & M
LIVE
I
$700
$500
I
$980
$700
I
$140
$100
I
$420
$300
LC vs. PB*
$1,400
$1,000
$1,000
CATTLE
M
$500
$500
M
$700
$700
M
$100
$100
M
$300
$300
LC vs. FC**
$420
$300
$300
LC vs. LH**
$700
$500
$500
LC vs. BR **
$560
$400
$400
FEEDER
I
$700
$500
Same as Non-Delivery
I
$140
$100
MARKET
CATTLE
M
$500
$500
Month
M
$100
$100
FC vs. LH**
$700
$500
$500
FC vs. LC**
$420
$300
$300
LIVE
I
$560
$400
I
$840
$600
I
$140
$100
I
$420
$300
HOGS
M
$400
$400
M
$600
$600
M
$100
$100
M
$300
$300
LH vs. PB*
$840
$600
$600
LH vs. LC**
$700
$500
$500
LH vs. FC**
$700
$500
$500
LH vs. BR **
$560
$400
$400
old/new:
old/old:
PORK
I
$1,120
$800
I
$2,800
$2,000
I
$1,260
$900
I
$1,260
$900
PB vs. LH*
$840
$600
$600
BELLIES
M
$800
$800
M
$2,000
$2,000
M
$900
$900
M
$900
$900
PB vs. LC*
$1,400
$1,000
$1,000
old/old & new/new:
PB vs. BR*
$1,400
$1,000
$1,000
I
$140
$100
M
$100
$100
BROILER
I
$560
$400
Same as Non-Delivery
I
$140
$100
MARKET
CHICKENS
M
$400
$400
Month
M
$100
$100
BR vs. LH**
$560
$400
$400
BR vs. LC**
$560
$400
$400
BR vs. PB*
$1,400
$1,000
$1,000
Forest Product Futures - SPAN
Performance Bond Requirements (Exchange Minimums)
RANDOM
SPEC
H/MEM
SPEC
H/MEM
SPEC
H/MEM
SPEC
H/MEM
LENGTH
-
$ $1,200
$800
I
$1,350
$900
I
$600
$400
I
$1,350
$900
N/A
LUMBER
M
$800
$800
M
$900
$900
M
$400
$400
M
$900
$900
NOTE:
For Agricultural & Forest products, Delivery month performance
*
Inter-commodity spreads are not allowed when either contract is in the delivery month.
bonds become effective close of business on the first delivery date
**
If either contract is in the delivery month, the performance bond will be
(see contract specifications)
the higher of the two non-spread delivery month performance bonds.
For allowable Inter-Exchange Spreads, see Page 7.
Revised November 26, 1991
Page 2
Currency Futures - SPAN
Performance Bond Requirements (Exchange Minimums)
OUTRIGHTS
OUTRIGHTS-
INTRA-
INTRA-COMMODITY
ALLOWABLE INTER-COMMODITY
DEL. MONTH
COMMODITY
SPREADS DELIVERY
SPREADS
COMMODITY
SPEC H/MEM
SPREADS
MONTH
SPEC
H/MEM
Initial
Maint.
I & M
AUSTRALIAN
I
$1,013
$750
Same as Non-Delivery
MARKET
Same as Non-Delivery
AD vs. BP
$1,688
$1,250
$1,250
DOLLAR
M
$750
$750
Month
Month
AD vs. CD
$1,350
$1,000
$1,000
AD vs. DM
$1,688
$1,250
$1,250
AD vs. JY
$1,215
$900
$900
AD vs. SF
$1,350
$1,000
$1,000
BRITISH
I
$2,430
$1,800
Same as Non-Delivery
MARKET
Same as Non-Delivery
BP vs. AD
$1,688
$1,250
$1,250
POUND
M
$1,800
$1,800
Month
Month
BP vs. CD
$2,025
$1,500
$1,500
BP vs. DM
$1,148
$850
$850
BP vs. JY
$1,688
$1,250
$1,250
BP vs. SF
$810
$600
$600
CANADIAN
I $540
$ 400
Same as Non-Delivery
MARKET
Same as Non-Delivery
CD vs. AD
$1,350
$1,000
$1,000
DOLLAR
M $ 400
$ 400
Month
Month
CD vs. BP
$2,025
$1,500
$1,500
CD vs. DM
$1,688
$1,250
$1,250
CD vs. JY
$2,025
$1,500
$1,500
CD vs. SF
$2,025
$1,500
$1,500
DEUTSCHE
I
$1,350
$1,000
Same as Non-Delivery
MARKET
Same as Non-Delivery
DM vs. AD
$1,688
$1,250
$1,250
MARK
M
$1,000
$1,000
Month
Month
DM vs. BP
$1,148
$850
$850
DM vs. CD
$1,688
$1,250
$1,250
DM vs. JY
$1,688
$1,250
$1,250
DM vs. SF
$675
$500
$500
JAPANESE
I
$1,350
$1,000
Same as Non-Delivery
MARKET
Same as Non-Delivery
JY vs. AD
$1,215
$900
$900
YEN
M
$1,000
$1,000
Month
Month
JY vs. BP
$1,688
$1,250
$1,250
JY vs. CD
$2,025
$1,500
$1,500
JY vs. DM
$1,688
$1,250
$1,250
JY VS. SF
$1,215
$900
$900
SWISS
I
$1,755
$1,300
Same as Non-Delivery
MARKET
Same as Non-Delivery
SF vs. AD
$1,350
$1,000
$1,000
FRANC
M
$1,300
$1,300
Month
Month
SF vs. BP
$810
$600
$600
SF vs. CD
$2,025
$1,500
$1,500
SF vs. DM
$675
$500
$500
SF vs. JY
$1,215
$900
$900
Revised November 26, 1991
Page 3
Currency Cross-Rate Futures - SPAN
Performance Bond Requirements (Exchange Minimums)
OUTRIGHTS
OUTRIGHTS-
INTRA-
INTRA-COMMODITY
ALLOWABLE INTER-COMMODITY
DEL. MONTH
COMMODITY
SPREADS DELIVERY
SPREADS
NOTES
COMMODITY
SPEC
H/MEM
SPREADS
MONTH
SPEC
H/MEM
Initial
Maint.
I & M
British Pound/
I
$1,013
$750
Same as Non-Delivery
MARKET
Same as Non-Delivery
MS XRATE vs. DM *
$1,620
$1,200
$1,200
Deutsche Mark
M
$750
$750
Month
Month
MS XRATE VS. BP
$1,620
$1,200
$1,200
Currency Cross-Rate
MS XRATE vs. JM XRATE *
$2,025
$1,500
$1,500
MS XRATE vs. FM XRATE *
$1,350
$1,000
$1,000
MS XRATE vs. DM-BP Spread #
$1,080
$800
$800
Ratio - 1:1:1
MS XRATE vs. DM-BP Spread #
$675
$500
$500
Ratio: See notes below
Deutsche Mark/
I
$1,350
$1,000
Same as Non-Delivery
MARKET
Same as Non-Delivery
JM XRATE vs. JY *
$2,025
$1,500
$1,500
Japanese Yen
M
$1,000
$1,000
Month
Month
JM XRATE vs. DM
$1,620
$1,200
$1,200
Currency Cross-Rate
JM XRATE vs. MS XRATE *
$2,025
$1,500
$1,500
JM XRATE vs. FM XRATE
$1,890
$1,400
$1,400
JM XRATE vs. JY-DM Spread #
$675
$500
$500
Ratio - 1:1:1
JM XRATE vs. JY-DM Spread #
$1,080
$800
$800
Ratio: See notes below
Deutsche Mark/
I
$675
$500
Same as Non-Delivery
MARKET
Same as Non-Delivery
FM XRATE vs. SF *
$1,755
$1,300
$1,300
Swiss Franc
M
$500
$500
Month
Month
FM XRATE vs. DM
$1,620
$1,200
$1,200
Currency Cross-Rate
FM XRATE vs. MS XRATE *
$1,350
$1,000
$1,000
FM XRATE vs. JM XRATE
$1,890
$1,400
$1,400
FM XRATE vs. SF-DM Spread #
$405
$300
$300
Ratio - 1:1:1
FM XRATE vs. SF-DM Spread #
$675
$500
$500
Ratio: See notes below
ADDITIONAL NOTES:
* Long vs. Long or Short vs. Short
The Clearing House will recognize 3-legged intercommodity spreads in
# 3-Legged Spreads
ratios designed to estimate the appropriate arbitrage relationships. They are
based on current market conditions and will change as the value of the component
contracts flutuate. For currently recognized ratios and additional information contact the Clearing
House at (312) 648-3888.
Revised November 26, 1991
Page 4
Interest Rate Futures - SPAN
Performance Bond Requirements (Exchange Minimums)
OUTRIGHTS
OUTRIGHTS
INTRA-COMMODITY
INTRA-COMMODITY
ALLOWABLE INTER-
DEL. MONTH
SPREADS
SPREADS-DELIVERY
COMMODITY SPREADS
COMMODITY
SPEC
H/MEM
SPEC H/MEM
MONTH
SPEC
H/MEM
Initial
Maint. I&) M
If one/both legs in months:
EURODOLLAR
I
$540
$400
Same as Non-Delivery
SPEC
H/MEM
Same as Non-Delivery
ED VS. TB
$270
$200
$200
TIME DEPOSIT
M
$400
$400
Month
1-6
I
$270
$200
Month
ED VS. EM
$270
$200
$200
M
$200
$200
7-16
Mkt
Mkt
13-WEEK U.S.
I
$540
$400
Same as Non-Delivery
I
$203
$150
Same as Non-Delivery
TB VS. ED
$270
$200
$200
TREASURY BILLS
M
$400
$400
Month
M
$150
$150
Month
TB vs. EM
$270
$200
$200
ONE-MONTH
I
$540
$400
Same as Non-Delivery
I
$270
$200
Same as Non-Delivery
EM VS. TB
$270
$200
$200
LIBOR
M
$400
$400
Month
M
$200
$200
Month
EM VS. ED
$270
$200
$200
Stock Index Futures - SPAN
Performance Bond Requirements (Exchange Minimums)
SPEC
H/MEM
SPEC
H/MEM/CBOE
SPEC
H/MEM/CBOE
Initial
Maint.
I & M
STANDARD &
I
$22,000
$9,000
Same as Non-Delivery
I
$490
$200
Same as Non-Delivery
SP VS. NK*
$7,350
$3,000
$3,000
POOR'S 500
M
$9,000
$9,000
Month
M
$200
$200
Month
NIKKEI 225
I
$18,000
$12,000
Same as Non-Delivery
I
$300
$200
Same as Non-Delivery
NK VS. SP*
$7,350
$3,000
$3,000
STOCK AVERAGE
M
$12,000
$12,000
Month
M
$200
$200
Month
For allowable Inter-Exchange Spreads, see Page 7.
Revised November 26, 1991
Page 5
*
S&P 500 vs. Nikkei 225 spread performance bond effective December 9, 1991.
Options - SPAN
Short Option Minimums
SPAN
SPAN Short
SPAN
SPAN Short
SPAN
SPAN Short
OPTION/SIZE
Option Minimum
OPTION/SIZE
Option Minimum
OPTION/SIZE
Option Minimum
Australian $
Refer to Daily
$ 19
Eurodollar
Refer to Daily
$ 10
Live Cattle
Refer to Daily
$ 13
Options-One
SPAN risk arrays
Options-One
SPAN risk arrays
Options-One
SPAN risk arrays
AD Futures
generated by
ED Futures
generated by
Live Cattle
generated by
Contract
the CME.
Contract
the CME.
Futures Contract
the CME.
British Pound
Refer to Daily
$ 45
Treasury
Refer to Daily
$ 10
Feeder Cattle
Refer to Daily
$ 13
Options-One BP
SPAN risk arrays
Bill Options
SPAN risk arrays
Options-One
SPAN risk arrays
Futures Contract
generated by
One T-Bill
generated by
Feeder Cattle
generated by
the CME.
Futures Contract
the CME.
Futures Contract
the CME.
Canadian $
Refer to Daily
$ 10
One-Month
Refer to Daily
$ 10
Live Hog
Refer to Daily
$ 10
Options-One
SPAN risk arrays
Libor Options
SPAN risk arrays
Options-One
SPAN risk arrays
CD Futures
generated by
One Libor
generated by
Live Hog
generated by
Contract
the CME.
Futures Contract
the CME.
Futures Contract
the CME.
Deutsche Mark
Refer to Daily
$ 25
British Pound/
Refer to Daily
$ 19
Frozen Pork
Refer to Daily
$ 20
Options-One
SPAN risk arrays
Deutsche Mark
SPAN risk arrays
Bellies Options
SPAN risk arrays
DM Futures
generated by
Cross-Rate Options--
generated by
One Pork Bellies
generated by
Contract
the CME.
One MS Cross
the CME.
Futures Contract
the CME.
Japanese Yen
Refer to Daily
$ 25
Futures Contract
Broiler Chickens
Refer to Daily
$ 10
Options-One
SPAN risk arrays
Deutsche Mark/
Refer to Daily
$ 25
Options--One
SPAN risk arrays
JY Futures
generated by
Japanese Yen
SPAN risk arrays
Broiler Chicken
generated by
Contract
the CME.
Cross-Rate Options--
generated by
Futures Contract
the CME.
Swiss Franc
Refer to Daily
$ 33
One JM Cross
the CME.
Random Length
Refer to Daily
$ 20
Options-One
SPAN risk arrays
Futures Contract
Lumber Options
SPAN risk arrays
SF Futures
generated by
Deutsche Mark/
Refer to Daily
$ 13
One Lumber
generated by
Contract
the CME.
Swiss Franc
SPAN risk arrays
Futures Contract
the CME.
S&P Options
Refer to Daily
$100
Cross-Rate Options--
generated by
One S&P 500
SPAN risk arrays
One FM Cross
the CME.
Futures
generated by
Futures Contract
Contract
the CME.
Nikkei Options
Refer to Daily
$100
One Nikkei 225
SPAN risk arrays
Futures
generated by
Contract
the CME.
SEE PAGE 7 FOR NOTES AND INTER-EXCHANGE SPREADS
See Clearing House Manual of Operations for additional information on options margining.
For additional option information call (312) 648-3888
Revised November 26, 1991
Page 6
NOTES TO SPAN MINIMUM PERFORMANCE BOND REQUIREMENTS
I. INTER-EXCHANGE SPREADS
Speculative
H/Mem
Speculative
H/Mem
I
M
/M/CBOE
CME FUTURES VS. FUTURES ON OTHER EXCHANGES:
I
M
I&M
CME S&P 500 FUTURES & OPTIONS VS. OCC Cleared Non-Equity Index Options:
Live Cattle vs MidAm Cattle; Live Hogs vs MidAm Hogs (1:2)
280
200
200
vs. AMEX XMI-Major Market Index
$7,350
$3,000
$3,000
90-Day.T-Bill vs. CBOT T-Bond (30 Year)
540
400
400
S & P 500 VS. AMEX XII-Institutional Index
$7,350
$3,000
$3,000
S & P 500 vs KCBOT Value Line
7,350
3,000
3,000
VS. CBOE OEX-S&P 100 Index
$7,350
$3,000
$3,000
Futures
vs. CBOE SPX, SPL-S&P 500 Index
$7,350
$3,000
$3,000
CME NIKKEI 225 FUTURES & OPTIONS VS. FUTURES ON OTHER EXCHANGES:
vs.
CBOE NSX-S&P 500 Index
$7,350
$3,000
$3,000
Nikkei 225 Futures & Options vs. SIMEX Nikkei Futures
$9,000
$6,000
$6,000
& Options
vs.
CBOE OLX-S&P 100 Index
$7,350
$3,000
$3,000
Nikkei 225 Futures & Options vs. OSE Nikkei Futures
$9,000
$6,000
$6,000
vs. CBOE LSX-S&P 500 Index
$7,350
$3,000
$3,000
NOTE:
vs. NYSE NYA-NYSE Index
$7,350
$3,000
$3,000
The above Options/Futures ratio spreads must be on a 1 to 1 futures equivalent basis.
vs. PHLX XVL-Value Line Index
$7,350
$3,000
$3,000
Holders of CME Nikkei Futures & Options vs. Amex Nikkei 225 Warrants qualify for hedge rates
vs. PSE FNC-Financial News Com.
$7,350
$3,000
$3,000
NOTE:
SPAN
The above Options and Futures vs. Options on Other Exchanges ratio spreads must be on a
OPTIONS IMPLIED
weighted (5:1) futures equivalent basis. Contact the Options Unit for details on calculation
VOLATILITY SCAN RANGE
of spreads.
Commodity
Scan Range
LC
.015
SCHEDULE OF SPAN INTER-COMMODITY SPREAD CREDIT PRIORITIES
FC
.030
LH
.020
CURRENCIES
Credit
INTEREST RATES
Credit
PB
.020
Priority
Spread
Rate
Priority
Spread
Rate
BR
.030
INITIAL/MAINTENANCE RATIO
1
*SP/NK
86
1
TB/ED
.75
LB
.020
AGRICULTURAL
1.4
2
BP/SF
.81
2
ED/EM
75
AD
.010
FOREST PRODUCTS
1.5
3
DM/SF
.78
3
TB/EM
.75
BP
.010
CURRENCIES
1.35
4
BP/DM
.70
CD
.010
INTEREST RATES
1.35
5
JY/SF
.61
DM
.010
S & P
2.45
6
BP/JY
.55
AGRICULTURAL
Credit
JY
.010
NIKKEI
1.5
7
BP/MS
.53
Priority
Spread
Rate
SF
010
8
AD/BP
.51
1
LC/FC
70
SP
.020
9
AD/SF
.51
2
LC/BR
.56
ED
.003
10
AD/JY
.49
3
LH/PB
.50
TB
.003
11
DM/JM
40
4
LH/BR
.50
EM
.003
12
DM/JY
.38
5
LC/LH
44
NK
030
13
BP/CD
32
6
LH/FC
.44
MS
010
14
AD/DM
.29
7
LC/PB
23
JM
010
15
DM/FM
20
8
PB/BR
.17
FM
010
16
AD/CD
.13
17
CD/SF
12
THIS DOCUMENT IS BASED ON INFORMATION THAT MAY CHANGE WITHOUT NOTICE.
18
CD/DM
.11
PLEASE CONSULT THE CME OR YOUR BROKER IF YOU HAVE QUESTIONS.
19
JM/FM
.07
THIS DOCUMENT SHALL IN NO WAY BE CONSTRUED AS BEING THE OFFICIAL RULES
20
CD/JY
.07
OF THE CME.
*
spread effective 12/09/91
Revised November 26, 1921
Page 7
CHICAGO MERCANTILE EXCHANGE
Contract Specifications
MINIMUM PERFORMANCE BOND REQUIREMENTS
NOW PRECEDE THE CONTRACT SPECIFICATIONS
Note: There were changes made to the Nikkei Daily Price Limits effective October 7, 1991; See page 16 for new limits.
See pages 13-15 for Options Contract Specifications
Revised November 26, 1991
PAGE 8
Agricultural Futures Contract Specifications
MINIMUM
COMMODITY/
CODES
FLUCTUATION
LAST DAY OF
1st DELIVERY
SIZE
HOURS*
MONTHS
CLR / TICK
IN PRICE
LIMIT
TRADING **
DATE **
Live
9:05
Feb, Apr, Jun
48 LC
2 1/2 C /100 lb.
1 1/2 C /lb.
Bus. day prior
4th business day
Cattle
1:00
Aug, Oct, Dec
($4.00/pt.)
(150 pt.)
to last 5 bus.
following 1st Fri
40,000 lbs.
(12:00)
($10.00)
($600)
days of contract
of contract month
Feeder
9:05
Jan, Mar, Apr
62 FC
2 1/2 c /100 lb.
1 1/2 C /lb.
Last Thurs.
Cash Settled the day
Cattle
1:00
May, Aug, Sep
($4.40/pt.)
(150 pt.)
of contract
following the last
44,000 lbs.
(12:00)
Oct, Nov
($11.00)
($660)
month
day of trading
Live Hogs
9:10
Feb, Apr, Jun
54 LH
2 1/2 C /100 lb.
1 1/2 C /lb.
Bus. day prior
2nd business day
40,000 lbs.
1:00
Jul, Aug, Oct
($4.00/pt.)
(150 pt.)
to last 5 bus.
following 1st Fri
(12:00)
Dec
($10.00)
($600)
days of contract
of contract month
Pork
9:10
Feb, Mar, May
56 PB
2 1/2 C /100 lb.
2 c /lb.
Bus. day prior
1st bus. day
Bellies
1:00
Jul, Aug
($4.00/pt.)
(200 pt.)
to last 5 bus.
of contract month
40,000 lbs.
(12:00)
($10.00)
($800)
days of contract
Broiler
9:10
Feb, Apr, May
BR BR
2 1/2 c /100 lb.
2 c /lb.
Second to last
Cash Settled the day
Chickens
1:00
Jun, Jul, Aug
($4.00/pt.)
(200 pt.)
Fri of contract
following the last
40,000 lbs.
(12:00)
Oct, Dec
($10.00)
($800)
month
day of trading
Forest Product Futures Contract Specifications
Random Length
9:00
Jan, Mar, May
69 LB
10 c /thous
$5 /thous board ft.
Bus day prior
Any bus. day after
Lumber
1:05
Jul, Sep, Nov
board ft.
(500 pt.)
to 16th cal.
last day of trading,
160,000 board feet
(12:05)
($1.60/pt)
($800)
day
up to and including
($16)
No Limit Spot Month
last business day of
contract month.
Contract Specifications for less active contracts may not necessarily be included in this summary.
SEE PAGE 16 FOR NOTES.
Revised November 26, 1991
Page 9
Currency Contract Specifications
MINIMUM
COMMODITY/
CODES
FLUCTUATION
LAST DAY OF
1st DELIVERY
SIZE
HOURS*
MONTHS
CLR / TICK
IN PRICE
LIMIT
TRADING**
DATE
Australian
7:20
Jan, Mar, Apr
AD AD
.0001
OPENING LIMIT
2nd Bus Day
3rd
Dollar
2:00
Jun, Jul, Sep
(1 pt)
BETWEEN
before 3rd
Wed
100,000
(9:16)
Oct, Dec &
($10.00/pt)
7:20 AM-7:35 AM
Wed
Spot Month
($10.00)
150 POINTS
British
7:20
Jan, Mar, Apr
BP BP
.0002
OPENING LIMIT
2nd Bus Day
3rd
Pound
2:00
Jun, Jul, Sep
(2 pt)
BETWEEN
before 3rd
Wed
62,500
(9:16)
Oct, Dec &
($6.25/pt)
7:20 AM-7:35 AM
Wed
Spot Month
($12.50)
400 POINTS
Canadian
7:20
Jan, Mar, Apr
C1 CD
.0001
OPENING LIMIT
2nd Bus Day
3rd
Dollar
2:00
Jun, Jul, Sep
(1 pt)
BETWEEN
before 3rd
Wed
100,000
(9:16)
Oct, Dec &
($10.00/pt)
7:20 AM-7:35 AM
Wed
Spot Month
($10.00)
100 POINTS
Deutsche
7:20
Jan, Mar, Apr
D1 DM
.0001
OPENING LIMIT
2nd Bus Day
3rd
Mark
2:00
Jun, Jul, Sep
(1 pt)
BETWEEN
before 3rd
Wed
125,000
(9:16)
Oct, Dec &
($12.50/pt)
7:20 AM-7:35 AM
Wed
Spot Month
($12.50)
150 POINTS
Japanese
7:20
Jan, Mar, Apr
J1 JY
.000001
OPENING LIMIT
2nd Bus Day
3rd
Yen
2:00
Jun, Jul, Sep
(1 pt)
BETWEEN
before 3rd
Wed
12,500,000
(9:16)
Oct, Dec &
($12.50/pt)
7:20 AM-7:35 AM
Wed
Spot Month
($12.50)
150 POINTS
Swiss
7:20
Jan, Mar, Apr
E1 SF
.0001
OPENING LIMIT
2nd Bus Day
3rd
Franc
2:00
Jun, Jul, Sep
(1 pt)
BETWEEN
before 3rd
Wed
125,000
(9:16)
Oct, Dec &
($12.50/pt)
7:20 AM-7:35 AM
Wed
Spot Month
($12.50)
150 POINTS
SEE PAGE 16 FOR NOTES.
Revised November 26, 1991
Page 10
Currency Cross-Rate Contract Specifications
MINIMUM
COMMODITY/
CODES
FLUCTUATION
LAST DAY OF
1st DELIVERY
SIZE
HOURS*
MONTHS
CLR / TICK
IN PRICE
LIMIT
TRADING**
DATE
British Pound/
7:20
Mar, Jun, Sep
MS MS
.0005
OPENING LIMIT
2nd Fri
Cash
Deutsche Mark
2:00
Dec
(5 pt)
BETWEEN
before 3rd
Settled
$50,000 X BP/DM XRATE
(2:00)
($5.00/pt)
7:20 AM-7:35 AM
Wed
($25.00)
500 POINTS
Deutsche Mark/
7:20
Mar, Jun, Sep
JM JM
.0002
OPENING LIMIT
2nd Fri
Cash
Japanese Yen
2:00
Dec
(2 pt)
BETWEEN
before 3rd
Settled
$125,000 X DM/JY XRATE
(2:00)
($12.50/pt)
7:20 AM-7:35 AM
Wed
($25.00)
150 POINTS
Deutsche Mark/
7:20
Mar, Jun, Sep
FM FM
.0002
OPENING LIMIT
2nd Fri
Cash
Swiss Franc
2:00
Dec
(2 pt)
BETWEEN
before 3rd
Settled
$125,000 X DM/SF XRATE
(2:00)
($12.50/pt)
7:20 AM-7:35 AM
Wed
($25.00)
150 POINTS
SEE PAGE 16 FOR NOTES.
Revised November 26, 1991
Page 11
Interest Rate Futures Contract Specifications
COMMODITY/
CODES
MIN. FLUCTUATION
LAST DAY OF
1st DELIVERY
SIZE
HOURS*
MONTHS
CLR / TICK
IN PRICE
LIMIT
TRADING**
DATE
Eurodollar Time
7:20
Mar, Jun, Sep
ED ED
.01 (1 basis pt)
2nd London bus
Cash Settled
Deposit
2:00
Dec & spot
($25/pt)
NO
day before 3rd
last day
$1,000,000
(9:30)
month
($25.00)
LIMIT
Wed
of trading
13-Week U.S.
7:20
Mar, Jun, Sep
T1 TB
.01 (1 basis pt)
1st bus day
1st day
Treasury Bills
2:00
Dec
($25/pt)
NO
prior to
of issue
$1,000,000
(10:00)
($25.00)
LIMIT
delivery date
***
One-Month LIBOR
7:20
Spot month plus
EM EM
.01 (1 basis pt)
2nd London bus
Cash Settled
$3,000,000
2:00
next 5 calendar
($25/pt)
NO
day before 3rd
last day
(9:30)
months
($25.00)
LIMIT
Wed
of trading
Stock Index Futures Contract Specifications
COMMODITY/
CODES
MIN. FLUCTUATION
LAST DAY OF
1st DELIVERY
SIZE
HOURS*
MONTHS
CLR / TICK
IN PRICE
LIMIT
TRADING*
DATE
Standard &
8:30
Mar, Jun, Sep
SP SP
.05
Limits in place
Thurs
3rd Fri
Poor's 500
3:15
Dec
(5 pt)
See Pages
prior to
$500 X S&P's
(3:15)
($5/pt)
17 20
3rd Fri
Cash
500 Stock Index
($25.00)
Settled
Nikkei 225 Stock
8:00
Mar, Jun, Sep
NK NK
5
See table on
Bus day preceding
2nd Fri
Average
3:15
Dec
($5/pt)
Page 16
2nd Friday of contract
$5 X Nikkei
(3:15)
($25.00)
month
Cash Settled
Stock Index
NOTE: Nikkei Spot Month trades without limits on the last day of contract month.
SEE PAGE 16 FOR NOTES.
Revised November 26, 1991
Page 12
Options Contract Specifications
CODES
MIN FLUCTUATION
LAST DAY OF
STRIKE PRICE
OPTION/SIZE
HOURS*
MONTHS
CLR / TICK
IN PRICE
LIMIT
TRADING
INTERVALS
Australian $
7:20
Mar, Jun, Sep
AD/KA Calls
.0001 = 1 pt.
Option ceases
2nd Friday
$/AD**
Options-One
2:00
Dec and
JA Puts
($10.00/pt)
trading when
prior to 3rd
$.01 intervals
AD Futures
(2:00)
Serial Month
($10.00)
corresponding
Wed of
e.g. $.76, $.77
Contract
Options +
cab = $5.00
future locks limit
contract mo.
British Pound
7:20
Mar, Jun, Sep
BP/CP Calls
.0002 = 2 pts.
Option ceases
2nd Friday
$/BP
Options-One BP
2:00
Dec and
PP Puts
($6.25/pt)
trading when
prior to 3rd
$.025 intervals
Futures Contract
(2:00)
Serial Month
($12.50)
corresponding
Wed of
e.g.$1.600,$1.625
Options +
cab = $6.25
future locks limit
contract mo.
Canadian $
7:20
Mar, Jun, Sep
C1/CV Calls
.0001 = 1 pt.
Option ceases
2nd Friday
$/CD
Options-One
2:00
Dec and
PV Puts
($10.00/pt)
trading when
prior to 3rd
$.005 intervals
CD Futures
(2:00)
Serial Month
($10.00)
corresponding
Wed of
e.g. $.800,$.805
Contract
Options +
cab = $5.00
future locks limit
contract mo.
Deutsche Mark
7:20
Mar, Jun, Sep
DI/CM Calls
.0001 = 1 pt.
Option ceases
2nd Friday
$ / DM **
Options-One
2:00
Dec and
PM Puts
($12.50/pt)
trading when
prior to 3rd
$.01 intervals
DM Futures
(2:00)
Serial Month
($12.50)
corresponding
Wed of
e.g. $.63, $.64
Contract
Options +
cab = $6.25
future locks limit
contract mo.
Japanese Yen
7:20
Mar, Jun, Sep
J1/CJ Calls
.000001 = 1pt.
Option ceases
2nd Friday
$ / JY **
Options-One
2:00
Dec and
PJ Puts
($12.50/pt)
trading when
prior to 3rd
$.0001 intervals
JY Futures
(2:00)
Serial Month
($12.50)
corresponding
Wed of
e.g.$.0072,$.0071
Contract
Options +
cab = $6.25
future locks limit
contract mo.
Swiss Franc
7:20
Mar, Jun, Sep
EI/CF Calls
.0001 = 1 pt.
Option ceases
2nd Friday
$ / SF **
Options-One
2:00
Dec and
PF Puts
($12.50/pt)
trading when
prior to 3rd
$.01 intervals
SF Futures
(2:00)
Serial Month
($12.50)
corresponding
Wed of
e.g. $.72, $.73
Contract
Options +
cab = $6.25
future locks limit
contract mo.
S&P Options
8:30
Mar, Jun, Sep
SP/CS Calls
.05 = 5 pts.
All S&P options
Bus day prior
See note ++
One S&P 500
3:15
Dec and
PS Puts
($5.00/pt)
series close
to 3rd Fri +++
(Page 16)
Futures
(3:15)
Serial Month
($25.00)
when S&P futures
Contract
Options +
cab = $12.50
lock limit
Serial-3rd Fri
Nikkei Options
8:00
Mar, Jun, Sep
NK/KN Calls
5 = 5 pts.
Bus day prior
500 point
One Nikkei 225
3:15
Dec and
JN Puts
($5.00/pt)
NO
to 2rd Fri +++
intervals
Futures
(3:15)
Serial Month
($25.00)
LIMIT
Serial-Bus day
e.g. 23,000, 23,500
Contract
Options +
cab = $12.50
prior to 3rd Sat
SEE PAGE 16 FOR NOTES.
Revised November 26, 1991
Page 13
Fonedditional option information call (312) 648-3888
Option Contract Specifications
CODES
MIN FLUCTUATION
LAST DAY OF
STRIKE PRICE
OPTION/SIZE
HOURS*
MONTHS
CLR / TICK
IN PRICE
LIMIT
TRADING **
INTERVALS
Eurodollar
7:20
Mar, Jun, Sep
ED/CE Calls
.01 = 1 pt.
NO
2nd London bus day
IMM Index for ED
Options-One
2:00
Dec
PE Puts
($25.00/pt)
LIMIT
before 3rd Wed of
Futures .25 intervals
ED Futures
(9:30)
($25.00)
contract month+++
e.g. 92.00, 92.25
Contract
cab = $12.50
Treasury
7:20
Mar, Jun, Sep
T1/CQ Calls
.01 = 1 pt.
Fri which is at
IMM Index for TB
Bill Options
2:00
Dec
PQ Puts
($25.00/pt)
NO
least 6 bus days
Futures .25 intervals
One T-Bill
(2:00)
($25.00)
LIMIT
prior to 1st bus
e.g. 92.50, 92.75
Futures Contract
cab = $12.50
day of contract mo
One-Month LIBOR
7:20
Mar, Jun, Sep,
EM/EM Calls
.01 = 1 pt.
2nd London bus day
IMM Index for EM
Options
2:00
Dec and
EM Puts
($25.00/pt)
NO
before 3rd Wed of
Futures .25 intervals
One EM Futures
(9:30)
Serial Month
($25.00)
LIMIT
contract month+++
e.g. 92.25, 92.50
Contract
Options+
cab = $12.50
British Pound/
7:20
Mar, Jun, Sep
MS/MS Calls
.0005 = 5 pt.
Option ceases
2nd Friday
IMM BP/DM XRATE
Deutsche Mark Options
2:00
Dec and
MS Puts
($5.00/pt)
trading when
prior to 3rd
at intervals of .025
One MS Futures
(2:00)
Serial Month
($25.00)
corresponding
Wed of
e.g. 2.9250, 2.9500
Contract
Options +
cab = $12.50
futures locks limit
contract mo.
Deutsche Mark/
7:20
Mar, Jun, Sep
JM/JM Calls
.0002 = 2 pt.
Option ceases
2nd Friday
IMM DM/JY XRATE
Japanese Yen Options
2:00
Dec and
JM Puts
($12.50/pt)
trading when
prior to 3rd
at intervals of .01
One JM Futures
(2:00)
Serial Month
($25.00)
corresponding
Wed of
e.g. 0.8500, 0.8600
Contract
Options +
cab = $12.50
futures locks limit
contract mo.
Deutsche Mark/
7:20
Mar, Jun, Sep
FM/FM Calls
.0002 = 2 pt.
Option ceases
2nd Friday
IMM DM/SF XRATE
Swiss Franc Options
2:00
Dec and
FM Puts
($12.50/pt)
trading when
prior to 3rd
at intervals of .01
One FM Futures
(2:00)
Serial Month
($25.00)
corresponding
Wed of
e.g. 0.8200, 0.8300
Contract
Options +
cab = $12.50
futures locks limit
contract mo.
For additional option information call (312) 648-3888
SEE PAGE 16 FOR NOTES.
Revised November 26, 1991
Page 14
Option Contract Specifications
CODES
MIN FLUCTUATION
LAST DAY OF
STRIKE PRICE
OPTION/SIZE
HOURS*
MONTHS
CLR / TICK
IN PRICE
LIMIT
TRADING **
INTERVALS
Live Cattle
9:05
Feb, Apr, Jun
48/CK Calls
2 1/2 C/100 lbs
1st Fri of the
cents/pound
Options-One
1:00
Aug, Oct, Dec
PK Puts
($4.00/pt)
NO
delivery month of
$0.02 intervals
Live Cattle
(1:00)
($10.00)
LIMIT
the underlying futures
e.g. $0.76, $0.78
Futures Contract
cab = $5.00
contract
Feeder Cattle
9:05
Jan, Mar, Apr
62/KF Calls
2 1/2 C/100 lbs
Last Thurs of
cents/pound
Options-One
1:00
May, Aug, Sep
JF Puts
($4.40/pt)
NO
contract month+++
$0.02 intervals
Feeder Cattle
(12:00)
Oct, Nov
($11.00)
LIMIT
e.g. $0.88, $0.90
Futures Contract
cab = $5.50
Live Hog
9:10
Feb, Apr, Jun
54/CH Calls
2 1/2 c/100 lbs
1st Fri of the
cents/pound
Options-One
1:00
Jul, Aug, Oct
PH Puts
($4.00/pt)
NO
delivery month of
$0.02 intervals
Live Hog
(1:00)
Dec
($10.00)
LIMIT
the underlying futures
e.g. $0.48, $0.50
Futures Contract
cab = $5.00
contract
Frozen Pork
9:10
Feb, Mar, May
56/KP Calls
2 1/2 c/100 lbs
Last Friday that is
cents/pound
Belly Options
1:00
Jul, Aug, Nov
JP Puts
($4.00/pt)
NO
more than 3 bus days
$0.02 intervals
One Pork Belly
(1:00)
($10.00)
LIMIT
prior to 1st bus day
e.g. $0.60, $0.62
Futures Contract
cab = $5.00
of delivery month
Broiler Chickens
9:10
Feb, Apr, May
BR/BR Calls
2 1/2 c/100 lbs
Second to last Friday
cents/pound
Options-One
1:00
Jun, Jul, Aug
BR Puts
($4.00/pt)
NO
of the contract month
$0.02 intervals
Broiler Chicken
(12:00)
Oct, Dec
($10.00)
LIMIT
(or prior business day
e.g. $0.60, $0.62
Futures Contract
cab = $5.00
if a holiday) +++
Random Length
9:00
Jan, Mar, May
69/KL Calls
10 C/thous brd ft
Last Friday prior
$ / thous bd. ft.
Lumber Options
1:05
Jul, Sep, Nov
JL Puts
($1.60/pt)
NO
to delivery month
$5.00 intervals
One Lumber
(1:05)
($16)
LIMIT
e.g. $160, $165
Futures Contract
cab = $8.00
For additional option information call (312) 648-3888
SEE PAGE 16 FOR NOTES.
Revised November 26, 1991
Page 15
NOTES TO CONTRACT SPECIFICATIONS
Times in parentheses indicate close on last day of trading (Central Time). Please note that pursuant to Rule 3902.F the Eurodollar contract will close on the last day of trading
at 3:30 London Time. This is 9:30 a.m. Chicago time except when Daylight Savings time is in effect in either, but not both London or Chicago.
See special provisions of contract in Rulebook.
The first delivery day (issue date) shall be the first day of the spot month on which a 13-week Treasury bill is issued and a one-year
Treasury bill has thirteen (13) weeks remaining to maturity.
+
For options that expire in months other than those in the March quarterly cycle, ie. serial month options, the underlying futures contract is the next futures
contract in the March quarterly cycle.
++ In the third and fourth nearest contract month in the S&P March quarterly cycle, the exercise prices shall be an integer divisible by 10. In all other months,
the exercise prices will be an integer divisible by 5.
+++ There will be automatic exercise and cash settlement of One-Month LIBOR, Feeder Cattle, Broiler Chickens, and quarterly in-the-money contracts in S&P 500,
Nikkei 225, and Eurodollar options on settlement day.
NIKKEI DAILY PRICE LIMITS
Daily Limit
MUTUAL OFFSET SYSTEM - FUTURES ONLY
Lead Month Settlement
(Index Points)
The Mutual Offset System (MOS) is the facility by which CME firms can have trades
Less than 20,000.00
1000.00
executed on the Singapore International Monetary Exchange (SIMEX) and transferred
More than 20,000.00 but less than 30,000.00
1500.00
back to the CME as new or liquidating trades. Similarly, SIMEX firms can have
More than 30,000.00
2000.00
trades executed on the CME and transferred back to the SIMEX as new or liquidating
trades. Mutual offset commodities for FUTURES ONLY are shown below:
1. Eurodollar
3. Japanese Yen
2. Deutsche Mark
4. British Pound
1991 HOLIDAY EARLY CLOSING SCHEDULE FOR CURRENCY, INTEREST RATE AND AGRICULTURAL PRODUCTS:
The following list indicates the days on which currency, interest rate and agricultural products will close at 12:00 noon through the end of 1991:
Monday, January 21, 1991
Martin Luther King Day
Friday, August 30, 1991
Labor Day
Friday, November 29, 1991
Post-Thanksgiving
Friday, Feburary 15, 1991
President's Day
Monday, October 14, 1991
Columbus Day
Tuesday, December 24, 1991
Christmas Eve
Thursday, March 28, 1991
Good Friday
Monday, November 11, 1991
Veteran's Day
Tuesday, December 31, 1991
New Year's Eve
Friday, May 24, 1991
Memorial Day
Wednesday, November 27, 1991
Thanksgiving Eve
THIS DOCUMENT IS BASED ON INFORMATION THAT MAY CHANGE WITHOUT NOTICE. PLEASE CONSULT THE CME OR YOUR BROKER IF
YOU HAVE QUESTIONS. THIS DOCUMENT SHALL IN NO WAY BE CONSTRUED AS BEING THE OFFICIAL RULES OF THE CME.
Revised November 26, 1991
Page 16
CHICAGO
MERCANTILE
SPECIAL
EXCHANGE
EXECUTIVE
REPORT
S-2328
December 17, 1990
APPROVAL OF NEW S&P 500
CIRCUIT BREAKER RULES
The CFTC approved changes to S&P 500 Stock Price Index futures
Rule 4002 I. - DAILY PRICE LIMIT (circuit breaker rule), and
S&P 500 Stock Price Index futures options Rule 4101.A. -
CONTRACT MONTHS, TRADING HOURS, AND TRADING HALTS, on
Wednesday, December 12, 1990. These rules were implemented
effective Thursday, December 13, 1990. The effect of the rule
changes is to reduce the current 30 index point maximum daily
limit to 20 index points.
The proposed rule keeps the current 5 point up or down opening
limit and the 12 point down limit in effect. There will be
a two-minute trading halt if the primary futures contract is
limit offered 12 points down at the end of the thirty-minute
period. After this two-minute halt, the market would reopen
with the 20 point limit in effect. The proposed rule would
also keep provisions for trading halts in the futures and
options when trading halts are declared in the corresponding
cash markets. Trading in the futures and futures options
markets would halt, and the futures markets would not reopen
until 50% of the S&P 500 stocks (selected by capitalization
weights) had reopened.
The new rules are set forth below, with additions underscored
and deletions bracketed:
4002. FUTURES CALL -
I. Daily Price Limit
[For a period of 180 days from [actual date of
Commission approval to be inserted here], the date of
Commission approval, Rule 4002.I. shall read as
follows:]
Daily price limits and trading halts of the S&P 500
Stock Price Index futures contract shall be coordinated
with trading halts of the underlying stocks listed for
trading in the securities markets.
CME Contract Specifications - November 26, 1991
Page 17
S-2328
December 17, 1990
Page 2
There shall be an initial daily price limit of 12.00
index points below the previous day's settlement price.
Once the primary futures contract is limit offered, a
30-minute period shall commence after which the 12.00
point limit shall not apply. In no case shall the 12.00
point limit apply after 2:30 p.m. Chicago time.
If the primary futures contract is limit offered at the
12.00 index points limit at the end of the 30-minute
period or at 2:30 p.m. Chicago time, trading shall
terminate for a period of two minutes, at which time the
market shall reopen. The 12-point Initial Daily Price
Limit shall not apply to such reopening.
[There shall be an intermediate daily price limit of
20.00 index points below the previous day's settlement
price. Once the primary futures contract is limit
offered, a 60 minute period shall commence after which
the 20.00 point limit shall not apply. However, if the
20.00 index point limit goes into effect after 1:30 p.m.
Chicago time, it shall remain in effect for the
remainder of the trading day.]
If at any time the primary futures contract is limit
offered at the initial [or intermediate] daily price
limit and there is a trading halt declared in the
primary securities market, trading shall be halted in
the futures contract and shall not resume until at least
50 percent of the underlying S&P 500 stocks (selected
according to capitalization weights) reopen. Upon
reopening after such a trading halt, the total daily
price limit of [30.00] 20.00 index points shall apply,
superseding the initial [and intermediate] daily price
limit[s].
There shall be a total daily price limit of [30.00]
20.00 index points below the previous day's settlement
price. If the market is limit offered and there is a
one-hour trading halt declared in the primary security
market, trading shall be halted. Once trading in the
primary security market resumes after a one-hour trading
halt, trading on the S&P 500 Stock Price Index futures
contract shall resume only after 50 percent of the
underlying S&P 500 stocks (selected according to
capitalization weights) reopen. Upon reopening after
a one-hour trading halt, prices may not trade beyond the
[30.00] 20.00 index point limit.
CME Contract Specifications . November 26, 1991
Page 18
S-2328
December 17, 1990
Page 3
If the market is limit offered and there is a two-hour
trading halt declared in the primary security market,
trading shall be halted. Once trading in the primary
security market resumes after a two-hour trading halt,
trading on the S&P 500 Stock Price Index futures
contract shall resume only after 50 percent of the
underlying S&P 500 stocks (selected according to
capitalization weights) reopen, except that there shall
be no trading at a price more than [30.00] 20.00 index
points below the previous day's settlement price.
There shall be no trading at a price more than [30.00]
20.00 index points above the previous day's settlement
price.
If a one-hour trading halt occurs within 30 minutes of
the normal close of trading that day, the S&P 500 Stock
Price Index futures contract shall not reopen that day.
If a one-hour trading halt occurs more than 30 minutes
but less than 60 minutes before the normal close of
trading that day, the S&P Price Limit Committee, after
consultation with the Executive Committee, shall
determine whether an abbreviated reopening of the S&P
500 Stock Price Index futures contract shall be allowed
in order to settle the futures contracts to market
forces. In the event of such a reopening, there shall
be no trading at a price more than [30.00] 20.00 index
points below the previous day's settlement price.
If a two-hour trading halt occurs within 60 minutes of
the normal close of trading that day, the S&P 500 Stock
Price Index futures contract shall not reopen that day.
If a two-hour trading halt occurs more than 60 minutes
but less than 120 minutes before the normal close of
trading that day, the S&P Price Limit Committee, after
consultation with the Executive Committee, shall
determine whether an abbreviated reopening of the S&P
500 Stock Price Index futures contract shall be allowed
in order to settle the futures contract to market
forces. In the event of such a reopening, there shall
be no trading at a price more than [30.00] 20.00 index
points below the previous day's settlement price.
CME Contract Specifications - November 26, 1991
Page 19
S-2328
December 17, 1990
Page 4
4101. OPTION CHARACTERISTICS. -
A. Contract Months, Trading Hours,
and Trading Halts
Options contracts shall be listed for such contract
months and scheduled for trading during such hours,
except as indicated below, as may be determined by the
Board of Governors, subject to the requirement that all
such determinations be submitted to the Commodity
Futures Trading Commission in accordance with the
provisions of Section 5a (12) of the Commodity Exchange
Act and all Commission regulations thereunder.
There shall be no trading in any option contract when
the S&P 500 Stock Price Index primary futures contract
is limit bid or offered: 1) at its Opening Price Limit,
2) at its Initial Daily Price Limit, [3) at its
Intermediate Daily Price Limit,] or [4]3) at its Total
Daily Price Limit, except that provision 2,] 3[7 and
4] shall not apply on an option's last day of trading.
There shall be no trading in any option contract during
a period when trading in the primary futures contract
is terminated pursuant to Rule 4002.I. or 4002.J.
For purposes of this rule, the primary futures contracts
shall be defined as the futures contract trading in the
lead-month configuration in the pit.
For purposes of this rule, the S&P Price Limit Committee
shall have the responsibility of determining whether the
primary futures contract is trading at its limit.
If you have any questions, please contact Mr. Todd Petzel,
Senior Vice President and Chief Economist, Financial Research
Department, at (312) 930-4580; Mr. Mark Jackson, Senior
Research Analyst, Financial Research Department, at (312) 930-
4581; or Ms. Mary Foster, Manager, Equity Index Marketing,
Equity Index Product Department, at (312) 930-8549.
CME Contract Specifications - November 26, 1991
Page 20
LAST TRADING DAY/DELIVERY DAY SUMMARY FOR 1991
(These dates are subject to change.)
JAN 91
FEB 91
MAR
91
APR
91
MAY
91
JUN
91
JUL 91
AUG 91
SEP 91
OCT 91
NOV 91
DEC 91
LIVE CATTLE
LAST DAY OF TRADING
FEB 21
APR 23
JUN 21
AUG 23
OCT 24
DEC 20
DELIVERY DAY/VALUE DAY
FEB 7
APR 11
JUN 13
AUG 8
OCT 10
DEC 12
FEEDER CATTLE
LAST DAY OF TRADING
JAN 31
MAR 28
APR 25
MAY 23
AUG 29
SEP 26
OCT 31
NOV 21
DELIVERY DAY/VALUE DAY
FEB 1
APR 1
APR 26
MAY 24
AUG 30
SEP 27
NOV 1
NOV 22
LIVE HOGS
LAST DAY OF TRADING
FEB 21
APR 23
JUN 21
JUL 24
AUG 23
OCT 24
DEC 20
DELIVERY DAY/VALUE DAY
FEB 5
APR 9
JUN 11
JUL 9
AUG 6
OCT 8
DEC 10
PORK BELLIES
LAST DAY OF TRADING
FEB 21
MAR 21
MAY 23
JUL 24
AUG 23
DELIVERY DAY/VALUE DAY
FEB 1
MAR 1
MAY 1
JUL 1
AUG 1
BROILER CHICKEN
LAST DAY OF TRADING
APR 19
MAY 24
JUN 21
JUL 19
AUG 23
OCT 18
DEC 20
DELIVERY DAY/VALUE DAY
APR 22
MAY 28
JUN 24
JUL 22
AUG 26
OCT 21
DEC 23
LUMBER
LAST DAY OF TRADING
JAN 15
MAR 15
MAY 15
JUL 15
SEP 13
NOV 15
DELIVERY DAY/VALUE DAY
JAN 16
MAR 18
MAY 16
JUL 16
SEP 16
NOV 18
CURRENCY
LAST DAY OF TRADING
JUN 07
SEP 06
DEC 06
CROSS-RATES
DELIVERY DAY/VALUE DAY
JUN 07
SEP 06
DEC 06
CURRENCIES
LAST DAY OF TRADING
JAN 14
FEB 15
MAR 18
APR 15
MAY 13
JUN 17
JUL 15
AUG 19
SEP 16
OCT 11
NOV 18
DEC 16
(SF,AD,DM,
DELIVERY DAY/VALUE DAY
JAN 16
FEB 20
MAR 20
APR 17
MAY 15
JUN 19
JUL 17
AUG 21
SEP 18
OCT 16
NOV 20
DEC 18
CD,BP,JY)
EURODOLLAR
LAST DAY OF TRADING
JAN 14
FEB 15
MAR 18
APR 15
MAY 13
JUN 17
JUL 15
AUG 19
SEP 16
OCT 14
NOV 18
DEC 16
DELIVERY DAY/VALUE DAY
JAN 14
FEB 15
MAR 18
APR 15
MAY 13
JUN 17
JUL 15
AUG 19
SEP 16
OCT 14
NOV 18
DEC 16
1-MO. LIBOR
LAST DAY OF TRADING
JAN 14
FEB 15
MAR 18
APR 15
MAY 13
JUN 17
JUL 15
AUG 19
SEP 16
OCT 14
NOV 18
DEC 16
DELIVERY DAY/VALUE DAY
JAN 14
FEB 15
MAR 18
APR 15
MAY 13
JUN 17
JUL 15
AUG 19
SEP 16
OCT 14
NOV 18
DEC 16
T-BILLS
LAST DAY OF TRADING
MAR 06
JUN 26
SEP 18
DEC 11
DELIVERY DAY/VALUE DAY
MAR 07
JUN 27
SEP 19
DEC 12
DELIVERABLE
JUN 6 '91
SEP 26 '91
DEC 19 '91
MAR 12 '92
S&P 500
LAST DAY OF TRADING
MAR 14
JUN 20
SEP 19
DEC 19
DELIVERY DAY/VALUE DAY
MAR 15
JUN 21
SEP 20
DEC 20
NIKKEI 225
LAST DAY OF TRADING
MAR 7
JUN 13
SEP 12
DEC 12
DELIVERY DAY/VALUE DAY
MAR 8
JUN 14
SEP 13
DEC 13
Revised November 26, 1991
Page 21
LAST TRADING DAY/DELIVERY DAY SUMMARY FOR 1992
(These dates are subject to change.)
JAN
92
FEB 92
MAR
92
APR
92
MAY
92
JUN
92
JUL 92
AUG 92 SEP 92
OCT 92
NOV 92
DEC
92
LIVE CATTLE
LAST DAY OF TRADING
FEB 21
APR 23
JUN 23
AUG 24
OCT 23
DEC 22
DELIVERY DAY/VALUE DAY
FEB 13
APR 09
JUN 11
AUG 13
OCT 08
DEC 10
FEEDER CATTLE
LAST DAY OF TRADING
JAN 30
MAR 26
APR 30
MAY 21
AUG 27
SEPT 24
OCT 29
DELIVERY DAY/VALUE DAY
JAN 31
MAR 27
MAY 01
MAY 22
AUG 28
SEPT 25
OCT 30
LIVE HOGS
LAST DAY OF TRADING
FEB 21
APR 23
JUN 23
JUL 24
AUG 24
OCT 23
DEC 23
DELIVERY DAY/VALUE DAY
FEB 11
APR 07
JUN 09
JUL 07
AUG 11
OCT 06
DEC 8
PORK BELLIES
LAST DAY OF TRADING
FEB 21
MAR 24
MAY 21
JUL 24
AUG 24
DELIVERY DAY/VALUE DAY
FEB 03
MAR 02
MAY 01
JUL 01
AUG 03
BROILER CHICKEN
LAST DAY OF TRADING
FEB 21
APR 16
MAY 22
JUN 19
DELIVERY DAY/VALUE DAY
FEB 24
APR 20
MAY 26
JUN 22
LUMBER
LAST DAY OF TRADING
JAN 15
MAR 13
MAY 15
JUL 15
SEP 15
DELIVERY DAY/VALUE DAY
JAN 16
MAR 16
MAY 18
JUL 16
SEP 16
CURRENCY
LAST DAY OF TRADING
MAR 06
CROSS-RATES
DELIVERY DAY/VALUE DAY
MAR 06
CURRENCIES
LAST DAY OF TRADING
JAN 13
FEB 14
MAR 16
APR 13
MAY 18
JUN 15
JUL 13
AUG 17
SEP 14
OCT 19
NOV 16
DEC 14
(SF,AD,DM,
DELIVERY DAY/VALUE DAY
JAN 15
FEB 19
MAR 18
APR 15
MAY 20
JUN 17
JUL 15
AUG 19
SEP 16
OCT 21
NOV 18
DEC 16
CD,BP,JY)
EURODOLLAR
LAST DAY OF TRADING
JAN 13
FEB 14
MAR 16
APR 13
MAY 18
JUN 15
JUL 13
AUG 17
SEP 14
OCT 19
NOV 16
DEC 14
DELIVERY DAY/VALUE DAY
JAN 13
FEB 14
MAR 16
APR 13
MAY 18
JUN 15
JUL 13
AUG 17
SEP 14
OCT 19
NOV 16
DEC 14
1-MO. LIBOR
LAST DAY OF TRADING
JAN 13
FEB 14
MAR 16
APR 13
MAY 18
DELIVERY DAY/VALUE DAY
JAN 13
FEB 14
MAR 16
APR 13
MAY 18
T-BILLS
LAST DAY OF TRADING
MAR 04
JUN 24
SEP 16
DEC 09
DELIVERY DAY/VALUE DAY
MAR 05
JUN 25
SEP 17
DEC 10
DELIVERABLE
JUN 4 '92
SEP 24 '92
DEC 17 '92
MAR 11 '93
S&P 500
LAST DAY OF TRADING
MAR 19
JUN 24
SEPT 17
DELIVERY DAY/VALUE DAY
MAR 20
JUN 25
SEPT 18
NIKKEI 225
LAST DAY OF TRADING
MAR 12
DELIVERY DAY/VALUE DAY
MAR 13
Revised November 26, 1991
Page 22
LAST TRADING DAY/DELIVERY DAY SUMMARY FOR 1993
(These dates are subject to change.)
JAN 93 FEB 93 MAR 93 APR 93 MAY 93 JUN 93 JUL 93 AUG 93 SEP 93 OCT 93 NOV 93 DEC 93
LIVE CATTLE
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
FEEDER CATTLE
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
LIVE HOGS
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
PORK BELLIES
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
BROILER CHICKEN
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
LUMBER
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
CURRENCY
LAST DAY OF TRADING
CROSS-RATES
DELIVERY DAY/VALUE DAY
CURRENCIES
LAST DAY OF TRADING
JAN 18
FEB 12
MAR 15
(SF,AD,DM,
DELIVERY DAY/VALUE DAY
JAN 20
FEB 17
MAR 17
CD,BP,JY)
EURODOLLAR
LAST DAY OF TRADING
JAN 18
FEB 12
MAR 15
APR 19
MAY 17
JUN 14
JUL 19
AUG 16
SEP 13
OCT 18
NOV 15
DEC 13
DELIVERY DAY/VALUE DAY
JAN 18
FEB 12
MAR 15
APR 19
MAY 17
JUN 14
JUL 19
AUG 16
SEP 13
OCT 18
NOV 15
DEC 13
1-MO. LIBOR
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
T-BILLS
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
DELIVERABLE
S&P 500
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
NIKKEI 225
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
Revised November 26, 1991
Page 23
LAST TRADING DAY/DELIVERY DAY SUMMARY FOR 1994
(These dates are subject to change.)
JAN 94
FEB 94
MAR 94
APR 94
MAY 94
JUN 94
JUL 94
AUG 94
SEP 94
OCT 94
NOV 94
DEC 94
LIVE CATTLE
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
FEEDER CATTLE
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
LIVE HOGS
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
PORK BELLIES
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
BROILER CHICKEN
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
LUMBER
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
CURRENCY
LAST DAY OF TRADING
CROSS-RATES
DELIVERY DAY/VALUE DAY
CURRENCIES
LAST DAY OF TRADING
(SF,AD,DM,
DELIVERY DAY/VALUE DAY
CD,BP,JY)
EURODOLLAR
LAST DAY OF TRADING
JAN 17
FEB 14
MAR 14
APR 18
MAY 16
JUN 13
JUL 18
AUG 15
SEP 19
OCT 17
NOV 14
DEC 19
DELIVERY DAY/VALUE DAY
JAN 17
FEB 14
MAR 14
APR 18
MAY 16
JUN 13
JUL 18
AUG 15
SEP 19
OCT 17
NOV 14
DEC 19
1-MO. LIBOR
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
T-BILLS
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
DELIVERABLE
S&P 500
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
NIKKEI 225
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
Revised November 26, 1991
Page 24
LAST TRADING DAY/DELIVERY DAY SUMMARY FOR 1995
(These dates are subject to change.)
JAN 95
FEB 95
MAR 95
APR 95
MAY 95
JUN 95
JUL 95
AUG 95
SEP 95
OCT 95
NOV 95
DEC 95
LIVE CATTLE
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
FEEDER CATTLE
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
LIVE HOGS
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
PORK BELLIES
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
BROILER CHICKEN
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
LUMBER
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
CURRENCY
LAST DAY OF TRADING
CROSS-RATES
DELIVERY DAY/VALUE DAY
CURRENCIES
LAST DAY OF TRADING
(SF,AD,DM,
DELIVERY DAY/VALUE DAY
CD,BP,JY)
EURODOLLAR
LAST DAY OF TRADING
JAN 16
FEB 13
MAR 13
APR 17
MAY 15
JUN 19
JUL 17
AUG 14
SEPT 18
DELIVERY DAY/VALUE DAY
JAN 16
FEB 13
MAR 13
APR 17
MAY 15
JUN 19
JUL 17
AUG 14
SEPT 18
1-MO. LIBOR
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
T-BILLS
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
DELIVERABLE
S&P 500
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
NIKKEI 225
LAST DAY OF TRADING
DELIVERY DAY/VALUE DAY
Revised November 26, 1991
Page 25
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THE CHICAGO MERCANTILE EXCHANGE
BACKGROUNDER
The Chicago Mercantile Exchange (CME), founded in 1919, is the world's leading
financial futures and options exchange. An international marketplace, it is the most diversified
exchange in the world. The CME trades futures and futures-options contracts on agricultural
commodities, currencies, interest rates and stock index products.
One-third of the CME's business comes from overseas. On an average day, the
Exchange clearing division processes about $500 million in performance bonds which back
market positions taken by customers, members and member firms. Of the more than 90
member firms at the CME, 25 are owned by non-U.S. banks and investment firms.
In 1991, the underlying value of all contracts traded at the CME will total more than
$50 trillion. In contrast, the underlying value of all equities traded at the New York Stock
Exchange in 1990 was about $1.3 trillion.
The CME Center, located at 30 South Wacker Drive in Chicago, consists of twin 40-
story office towers connected by a state-of-the-art trading complex. The complex encompasses
two trading floors totalling 70,000 square feet, 34 trading pits and more than 1200 individual
communications booths. More than 5,000 people engage in business activity on the main
trading floor during the course of a typical business day, which begins as 7:20 a.m. and ends
at 3:15 p.m. The Exchange also maintains offices in New York, Washington, D.C., London
and Tokyo.
The CME is a not-for-profit corporation consisting of and owned by its members. It
provides an open forum for the trading of futures and futures-options. The Exchange
establishes and enforces trading rules and collects and disseminates information on transactions
executed on its trading floor.
Exchange membership, numbering 2,724, comprises independent traders and brokers as
well as representatives of major brokerage firms, banks, investment houses and corporations.
These members execute trades for themselves, for others, or both.
All CME memberships are subject to a thorough review process and must be approved
by the Exchange's Board of Governors. Memberships are purchased from existing members
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at prevailing market prices. All members are qualified (guaranteed) by a CME Clearing
Member firm. Three types of memberships may be purchased on the Exchange:
The full Chicago Mercantile Exchange (CME) Division membership entitles the owner
to execute trades in any contract offered on the Exchange.
The International Monetary Market (IMM) Division membership entitles the owner to
execute trades in all IMM and IOM futures and futures-options contracts, i.e., all
currency futures, interest rate futures and stock index futures contracts as well as all
futures-options contracts.
The Index and Option Market (IOM) Division membership entitles the member to
execute trades in all IOM futures and futures-options contracts, i.e., all stock index
futures contracts, random length lumber contracts and all futures-options contracts.
The CME (full) seat is the highest priced seat on any U.S. exchange. Record seat prices on
the Exchange are:
CME $550,000 on March 9, 1989
IMM $475,000 on April 28, 1989
IOM $180,000 on September 22, 1987
TRADING VOLUME
In 1990, the CME traded just under 103 million contracts. Between 1980 and 1990,
overall volume at the CME increased 460 percent -- nearly twice the industry rate. The key
to CME growth is found in its diversity: the Exchange trades four product groups --
agricultural, currency, interest rate and stock index.
Financial futures and options are responsible for a great deal of this spectacular growth,
accounting for approximately 90 percent of all trading at the CME in 1990 and representing
a 60 percent industry-wide market share.
CME 1990 volume was led by Eurodollar futures which traded more than 34 million
contracts, making it the industry's second most active contract. More than 12 million futures
contracts were traded on the S&P 500 stock index in 1990, the largest equity index product
traded in the world.
The 1983 introduction of options on the S&P 500 stock index futures contract paved
the way for a new era of growth and possibilities; the CME now trades 16 options on futures.
In 1990 the CME recorded annual volume of more than one million on five of those options
contracts.
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INTERNATIONAL MOMENTUM
The CME is programmed for diversification and internationalization. In 1980, the CME
was the first U.S. exchange to open an office in Europe. The CME established an historic
bridge to the markets of the Pacific Rim in 1984 with its mutual offset trading link to the
Singapore International Monetary Exchange (SIMEX). In April 1987, the CME reaffirmed that
global commitment and its leadership role by being the first exchange to open a Tokyo office.
In response to the demands of globalization, the Chicago Mercantile Exchange, the
Chicago Board of Trade and Reuters Holdings PLC entered into an historic long-range
agreement to create an "after hours" global electronic automated transaction system for the
trading of futures and futures-options. The concept embodied in GLOBEX embraces the
realities brought about by technological advancements of recent years and takes a giant step
toward unification of the world's separate financial centers.
ECONOMIC IMPACT
A study commissioned by the Commercial Club of Chicago in 1987 found that "at least
33,000 people were directly employed by the Chicago exchanges, their members and the
organizations that use the exchanges and provide services to them and their members." Total
direct and indirect employment was put at 110,000. Approximately one-third of these figures
can be attributed to the CME and its members. Naturally, the CME also adds vitality to the
Chicago economy through its spending, payment of both city and property taxes and by
attracting tourists and foreign investors to the Chicago area. What's more CME members
have some $3.4 billion in cash and treasury securities is on deposit in Chicago banks as
margin collateral.
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CME EURODOLLAR STATISTICS
Year
Volume
Pct Inc.
1981
15,171
Dec. 9, 1981, 1st day
1982
323,619
1983
891,066
175.34%
1984
4,192,952
370.55%
1985
8,900,528
112.27%
1986
10,824,914
21.62%
1987
20,416,216
88.60%
1988
21,705,223
6.31%
1989
40,818,269
88.06%
1990
34,695,625
-15.00%
1991
34,047,370
6.30%
Jan-Nov.
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Chicago Mercantile Exchange
Annual volume of contracts traded
Year
Vol
Pct. Inc.
1980
22,261,295
1981
24,527,020
10.18%
1982
33,574,286
36.89%
1983
38,111,134
13.51%
1984
44,870,922
17.74%
1985
56,548,476
26.02%
1986
68,775,524
21.62%
1987
84,367,214
22.67%
1988
78,011,668
-7.53%
1989
104,654,457
34.15%
1990
102,994,612
-1.59%
Compound increase 1980-1990
363%
1991
99,147,847
4.10%
Jan-Nov.
World financial centers that have established futures
and options exchanges since 1980:
London
Tokyo
Hong Kong
Osaka
Singapore
Switzerland
Sydney
Frankfurt
Paris
Sao Paolo
New Zealand
Amsterdam
Countries that have announced intentions to establish
futures and options exchanges:
Mexico
USSR
Panama
Chile
Hungary
China (PRC)
Czechoslovakia
Italy
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CME CONTRACTS
CME FUTURES:
AGRICULTURAL
Live Cattle
Live Hogs
Feeder Cattle
Frozen Pork Bellies
Broiler Chickens
IMM FUTURES:
CURRENCIES
Australian Dollar
British Pound
Canadian Dollar
Deutschemark
Japanese Yen
Swiss Franc
British Pound/Deutschemark Currency Cross-Rates
Japanese Yen/British Pound Currency Cross-Rates
Deutschemark/Japanese Yen Currency Cross-Rates
INTEREST RATES
Three-Month Eurodollar
U.S. Treasury Bill
One-Month LIBOR
IOM FUTURES:
STOCK INDEXES
Standard & Poor's 500
Nikkei 225
OTHER
Random Length Lumber Futures and Options
IOM OPTIONS
ON FUTURES:
AGRICULTURAL
Live Cattle
Live Hogs
Feeder Cattle
Frozen Pork Bellies
Broiler Chickens
CURRENCIES
Australian Dollar
British Pound
Canadian Dollar
Deutschemark
Japanese Yen
Swiss Franc
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INTEREST RATES
Eurodollar
U.S. Treasury Bill
One-Month LIBOR
STOCK INDEXES
Standard & Poor's 500
Nikkei 225
5
Reagan at CME
Administration of Ronald Reagan, 1988 / Sept. 30
parts
or
make up stories, jokes, and tell them among
on, jump. Go over the fall." And he did.
And
inci-
themselves, which reveals they've got a
And my man went down the rocks around
to
see
great sense of humor, but also a little cyni-
the fall to see if he could be of help. And
people
cism about their way of life. And just as I
proud
of,
was coming home from the Moscow
there he was down there wringing out his
ything
summit, I got another new one that was
shirt. And he said, "When he told you to
I've
handed to me. This is their story, this is the
jump and go over the falls, why did you do
more
way they treat it, and it shows a little differ-
that?" He said, "I got a wife and three
im-
mat-
ence between two systems.
kids." [Laughter]
Ladies and
The story has it that I and Gorbachev are
So, thank you all, and God bless you all.
I
wonder
in his limousine. And I had the head of our
believed
Secret Service unit, and he had his chief
Note: The President spoke at 12:49 p.m. at
hopes
and
security man with him. And we were sight-
Wozniak's Casino. He was introduced by
seeing. And we got out to where there was
Gov. James R. Thompson. In his opening
happened,
a waterfall. And we got out of the car to
remarks, he referred to the late Aloysius
8
look at the waterfall. And the Secretary
Mazewski and his wife, Florence, who was
or
President
General Gorbachev said to my man, "Go
seated beside the President. He also referred
an
ahead, jump. Go over the fall." And my
oppor-
to Representative Jack Davis; Stanley Woz-
onths
man said, "I've got a wife and three kids."
niak, owner of the casino; and Mr. Woz-
ago,
podium
So he turned to his own man and said, "Go
at
niak's mother, Theresa.
the
young
about the
And
have been
Remarks at a Republican Party Fundraiser in Chicago, Illinois
Chicago Merc Ex.
all the
September 30, 1988
they
had
come
to
the
Young
Thank you very much. And, Jim, I thank
34, Sweetness itself, Walter Payton. Let me
you for that introduction. And thank you,
tell you something about that town: It ain't
Mike Galvin and Dick Morrow. And I'd like
we
have
no Second City!
enerations
to say hello to Congresswoman Lynn
Of course, it's not exactly the same place
noment
of
Martin, who happens to be the Congress-
it was in the old days. I remember hearing
So,
let
woman where my hometown is-or was.
us
about a fellow who was assigned to be a
he
Ameri-
And my valued friend and old colleague,
precinct watcher on election day here. He
the
fate
Howard Baker. And again, a special thank
saw a fellow walk in and vote and walk out.
vision of a
you to Jim Thompson for that marvelous
And then the same fellow came in again,
future
of
introduction. Jim, you're a great guy and an
only this time with a different hat on-
Idren
and
even greater Governor and a man who
[laughter]-and voted. And then he came
gives new meaning to an old phrase-be-
in again, only this time with a different
for
a
cause unlike some Governors, Jim, you took
sport coat on, and voted. And the first
let's
the Pledge. [Laughter]
fellow went up to the precinct captain and
We
Now, they tell me I'm standing right in
said, "Hey, I think that man voted three
going
to
front of the pork bellies pit here. [Laughter]
times already." And the precinct captain
if
you
That's funny, I never knew Congress spent
said, "Three times? That's impossible. He's
November
time in Washington-or in Chicago, I
not even dead yet." [Laughter]
at
the
should say. [Laughter] They spend time in
Seriously, it's a great pleasure to be here
horses
in
Washington-and spend it and spend it.
on the floor of the Merc because this is a
to
switch
[Laughter] Actually, I might have to revise
place devoted to the future. And believe
direction
my opinion of Congress if that were true,
me, when you've had as much past as I
because anyone with half a brain knows
have, you just love the future. [Laughter]
nitting
to
that this is one of the world's great towns. A
Just think, only a few hours ago traders and
discov-
city that's home to Saul Bellow and Allan
brokers were waving their arms, screaming
Union
Bloom and Ernie Banks and yes, Number
themselves hoarse, betting on the future.
1255
Sept. 30 / Administration of Ronald Reagan, 1988
Come to think of it, they were a lot like the
change. We began the change 8 years ago.
But we did
crowd in New Orleans during and after one
Now, let me talk a little bit about that
work ourselv
of the finest speeches I've ever heard, given
change: We're in the 70th straight month of
encouraging
by one of the finest men I've ever known, a
economic recovery. We've been dedicated
manding not
fellow by the name of George Bush.
to slashing taxes and liberating the Ameri-
cellence isn't
Some people want to talk this year about
can economy from the regulations and con-
ophy that say
competence. Well, I say, fine, let's talk
fiscations of the "malaise" years. When we
cause that is
GB
about competence. I just happen to think
came into office, families everywhere were
can." Excelle
that the youngest flier in the Navy with 58
reeling from tax rates that were sapping
going to get
combat missions, the Texas wildcatter who
this nation's initiative. We took that money
We've go
Praise
made his own way in the world, the Repub-
out of the grasping hands of the Washing-
system, app
lican Congressman from Houston, the chair-
ton bureaucrats and put it back in the wal-
who respect
man of the Republican Party, the de facto
lets of the people from whom they confis-
meaning of
Ambassador to China, the Ambassador to
cated it in the first place: the working men
crime has fal
the United Nations, the Director of the
and women of America.
cause we pu
Central Intelligence Agency, and the Vice
But you know, I have to interrupt myself
Make a false
President of the United States has it just
right here with just a little anecdote from
hear is the
about wrapped up in the competence de-
my previous days as Governor of California.
shut.
partment. We've all seen what a brilliant
I came into a situation there as Governor
We've gor
job he's done in the past, and I can promise
that was about the same as I came into in
fenses. We'r
you he's going to do an even better job in
world. Our
Washington a few years ago. But the differ-
the future.
Looking ahead to the future is something
ence between the two parties is evidence of
America is
allies stood
George Bush has in common with the
this. We began to have surpluses, and about
the fourth surplus was the biggest. And
siles pointin
people who work on this floor. It's also
Asia. And M
something he has in common with all of
each time that we had a surplus, we gave it
He did busir
you and with the Republican Party as a
back to the people by way of the tax
business; and
whole. You know, it used to be that being a
system. Well, this fourth one was big
America }
Republican in Cook County was a little bit
enough, and each time I would have to-I'd
distance in t
like being Elliot Ness in "The Untouch-
find out first that we were going to have a
has faded
ables"-[laughter]-outnumbered in a big
surplus so that I could go public and tell the
people what we were going to do with it.
policy crises
way. But more and more Chicagoans are
dent Bush a
beginning to realize that if you want to go
I had a Democratic legislature, and then
so many thi
with a future of opportunity, economic
they couldn't quite take on the people after
right after
growth, and peace through strength, there's
they'd heard that I was giving them back
do the canca
only one place to turn: the party of Abra-
the money. [Laughter] And this particular
Yes, let's
ham Lincoln, the Republican Party.
day, a leader-Democratic leader in the
years before
But I'm delighted to see so many new
senate-stormed into my office and hit my
to Washingt
faces in this room, a sign of the change in
desk. And he said, "Mr. President, giving
Nicaragua, :
Republican fortunes in Cook County. And
that money back to the people is an unnec-
Ambassador
of course, there are two fellows here who
essary expenditure of public funds."
by Commu
really have seen the light, men of vision
[Laughter] I think that kind of sums up the
invaded by
and tenacity, Jim O'Grady and Ed Vrdo-
difference between our two philosophies.
what was go
lyak. They saw the light and came aboard,
The result has been astounding. In the
The mise
which is fine by me. It's no secret I used to
past years, we've seen an explosion of hard
by adding t.
be a Democrat before I saw the light, too.
work and innovation across this country,
unemploym
Only when I saw the light, I had to ask
people putting their shoulders to the wheel
ed in the 1
Tom Edison, "What in heck is that thing,
and shifting their entrepreneurial energies
candidate
anyway?" [Laughter]
into overdrive. And now more Americans
against Jerry
George and our party look to the future-
are at work today, an amazing 62.7 percent
misery inde
a future of continued growth, a future of
of all-this is what is considered to be the
has a right
expanded opportunity, a future of peace. I
potential employment pool-of all Ameri-
misery ind
hear some people say it's time for a change.
cans, male and female, from age 16 and up.
1976. In 1
Well, ladies and gentlemen: We are the
And 62.7 percent of that group have jobs.
misery inde
1256
Administration of Ronald Reagan, 1988 / Sept. 30
ago.
But we didn't stop there. We've gone to
was now 21 percent.
that
work ourselves on the educational system,
Well, today it's less than 10 percent, and
onth
of
encouraging the return to basics and de-
it's been shrinking faster than Walter
licated
manding nothing less than excellence. Ex-
Hudson, the 1,200-pound man in New York
Ameri-
cellence isn't just a good grade: It's a philos-
who just lost 700 pounds. Now, if only we
con-
ophy that says, "You must do your best be-
could get Congress to follow Walter's exam-
we
cause that is what it means to be an Ameri-
ple. Maybe you didn't hear me a moment
were
can." Excellence-that's our goal, and we're
ago. He's that 1,200-pounder who's lost 700
apping
going to get it!
pounds-if we could get Congress to follow
money
We've gone to work on our judicial
Walter's example and cut the fat out of
ashing-
system, appointing serious-minded judges
their diet. I think we ought to put them on
wal-
who respect the Constitution and know the
a diet, a diet called the line-item veto and
confis-
meaning of the word punishment. Violent
the balanced budget amendment. Now, you
men
crime has fallen significantly since 1981 be-
know when I'm talking about the Congress
cause we put America's crooks on notice:
this way, present company is excepted-
myself
Make a false move, and the next sound you
[laughter]-and a lot of her kind that are
from
hear is the clang of a jail cell slamming
there on our side.
fornia.
shut.
We've gone to work on our nation's de-
Well, back in 1979, Americans were wait-
in
fenses. We're once again respected in the
ing in lines a mile long to buy gasoline. And
world. Our Armed Forces are strong, and
a President went on television that year to
differ-
America is at peace. We and our NATO
blame it all on the American people, telling
of
allies stood firm in the face of Soviet mis-
them it was all their fault. They were suf-
about
And
siles pointing at the heart of Europe and
fering from some kind of malaise. Well, it
it
Asia. And Mr. Gorbachev got the message.
wasn't the American people: It was the
He did business because he knew we meant
guys in Washington who had the malaise.
tax
big
business; and we still mean business!
And come 1980, those guys felt the winds
America has traveled such a remarkable
coming in off the lake, and those winds
a
distance in the last 8 years that the memory
blew them all the way back to Georgia.
has faded of the economic and foreign
Today we have peace and prosperity, and
the
policy crises that we faced when Vice Presi-
the liberals are trying to pretend those eco-
it.
dent Bush and I took office. The last time
nomic and foreign policy nightmares they
then
after
so many things went wrong all at once was
gave us never happened. They're singing
right after Mrs. O'Leary's cow decided to
the same song they sang back then, and it
back
do the cancan. [Laughter]
sure isn't, "Don't Worry, Be Happy."
ticular
Yes, let's take a little journey back to the
[Laughter] It's more like, "Please Worry, Be
the
years before George Bush and I were sent
Miserable." [Laughter]
my
to Washington. In just one year, 1979, Iran,
You can hardly blame them for trying to
giving
Nicaragua, and Grenada were all lost. Our
convince the country that good news is ac-
Ambassador to Afghanistan was murdered
tually bad news. After all, what issues do
by Communist gunmen, and that country
they have to run on? Take defense-they
the
invaded by Soviet troops. And add to that
opposed rebuilding our military defenses.
what was going on at home.
They opposed the deployment of the mis-
the
The misery index-which you determine
siles in Europe to counter the Soviet threat.
hard
by adding the rate of inflation to the rate of
They opposed the liberation of Grenada.
unemployment. And that had been invent-
They opposed the raid on terrorist Libya.
ed in the 1976 election, and it was used by
They oppose our policy of helping freedom
ergies
candidate Carter-or President Carter
fighters advance the cause of liberty around
against Jerry Ford. He used this because the
the world. George and I did all those things,
misery index was 13.4, and he said no one
and I'll tell you proudly right now: We'd
the
has a right to ask to be President with a
both do every single one of them over
misery index that big. Well, that was in
again.
up.
1976. In 1980 they never mentioned the
Well, now they're trying to get elected,
jobs.
misery index, after their 4 years, because it
and so they say the Nation's defenses are
1257
Sept. 30 / Administration of Ronald Reagan, 1988
safe with us. Well, ladies and gentlemen,
decided which department they should go
send the Chic
I've been Commander in Chief for almost 8
to and initialed them and sent them on.
Well, on No
years now, and I've studied their record
And one day a classified paper came to his
people will be
and their positions. And based on my re-
desk marked "secret." And he initialed it
liberal bears
search, I'm going forth with a message for
and sent it on. In 24 hours it came back to
And why? Be
the American people: When they talk about
him with a memorandum attached that
bullish on Am
a strong defense, I don't buy it.
said, "You weren't supposed to see this.
So, let us {
They oppose the death penalty, even for
Erase your initials and initial the erasure."
sages and o
a crack dealer with a machinegun who
[Laughter] Well, now the liberals are talk-
woman, and
murders a police officer in the line of duty.
ing about fiscal responsibility and how
and across thi
George and I fought to protect the noble
that a vote fo
they'll pay America's debts. Well, once
men and women who protect us, and that
again, we've got to go out to the American
for prosperit
means the death penalty for these vicious
future.
people with a message: Don't look to a big
killers. If you ask me, there are no Ameri-
And I think
spender to pay America's bills.
cans braver and no citizens more precious
long. I just W
There's a solution to the spending crisis.
than the men and women who guard us:
you not only
That solution is so simple only a liberal
our State and local police.
also for what
could miss it. [Laughter] We just have to
But the liberals, like their flagship, the
you all.
ACLU-{laughter-often seem to concern
spend less. But big spending is as seductive
themselves with the rights of criminals and
as anabolic steroids, and it's time the big
forget about the rights of the citizens those
spenders were disqualified. We can accom-
criminals prey upon. But now they want to
plish that by giving George Bush what he
needs to do the job: a new Congress, a
Message t
get elected, and so they claim they're tough
on crime. Well, I've examined that record,
better Congress, a Republican Congress.
September
and we've all got to go out and tell the
And people in this area can help get the job
American people: When they say they're
done by reelecting a terrific first-term Con-
To the Congr
tough on crime, don't you believe it.
gressman from the Fourth District. He's got
In accorda
The liberals opposed our tax cuts, our tax
a tough race, but he's a tough-as-nails guy:
Control Act
reform efforts, our economic program that
Jack Davis. Send him back there.
deferrals of I
slashed interest rates in half and put Amer-
We're working hard to solve the drug
$2,024,171,27
ica back to work. Now they say they want
crisis in this country, but we're facing some
The defer
to help the American middle class. And
resistance. Guess where? With the liberals
Appropriated
what they're planning to do for the Ameri-
on Capitol Hill, that's where. The House has
partments of
can middle class is to tax them. Well, the
passed a drug bill with a lot of good and
Health and I
traders on this floor would understand what
tough provisions. But now that bill is stalled
and Transpor
they're doing, and it's a message we all
in the Senate. I tell you this: If the Senate
have to bring to our fellow Americans: The
were controlled by Republicans today, we'd
liberals are selling the middle class short.
already have signed into law that drug bill,
The liberals have been slashing away at
and dealers and users everywhere would
Informal ]
our nation's defenses while passing budget-
know this country stands united behind two
busting bills through Congress-$87 billion
powerful words: zero tolerance,
September
here, $23 billion there; and as Everett Dirk-
What it all comes down to is a clash of
sen might have said, pretty soon you're talk-
principles, of values, of visions. The liberals
The Presid
ing about real money. [Laughter] Every
look at this country and see problems, woes,
here. I had 1
time they see a problem, they think a big
gloom and doom. And you know, that's the
of the dog-à
government program run by bureaucrats in
kind of thinking that can turn into a self-
gressional bu
Washington is the solution-the same bu-
fulfilling prophecy. We look at this country,
hoped to ret
reaucrats who do so much to stifle individ-
and we see expanded opportunities, a glori-
the required
ual initiative and economic growth.
ous future, a future in which this nation is
they're not al
I brought with me to Washington a little
strong, protected by land and sea and air
have to stay
memory of what I had learned about a gen-
and, yes, space-courtesy of the Strategic
bills will be
tleman who had a job in Washington. He
Defense Initiative. We look to the future
sat at a certain place, and documents and
and see a nation healthy, a nation strong, a
bills and so forth came to his desk. And he
nation at peace. I know all of you want to
1258
Administration of Ronald Reagan, 1988 / Sept. 30
they should go
send the Chicago Bears to the Super Bowl.
Note: The President spoke at 7 p.m. on the
sent them on.
Well, on November 8th, the American
trading floor of the Chicago Mercantile Ex-
per came to his
people will be sending the gloom-and-doom
change. He was introduced by Gov. James
he initialed it
liberal bears into hibernation. [Laughter]
R. Thompson. In his opening remarks, the
it came back to
And why? Because they know that we are
President referred to Michael Galvin, Illi-
attached that
bullish on America.
nois Bush/Quayle campaign finance chair-
ed to see this.
So, let us go then. Let's bring our mes-
man; Richard Morrow, chairman of the re-
il the erasure."
sages and our optimism to every man,
woman, and child across this great State
ception; Howard H. Baker, Jr., former Chief
berals are talk-
and across this great nation. Let them know
of Staff to the President; writers Saul
ility and how
ts. Well, once
that a vote for us is a vote for peace, a vote
Bellow and Allan Bloom; former Chicago
) the American
for prosperity, and, yes, a vote for the
Cubs baseball player Ernie Banks; and Chi-
't look to a big
future.
cago Bears football player Walter J. Payton.
S.
And I think I've kept you from dinner too
The President also referred to James
spending crisis.
long. I just want to say a thank you to all of
O'Grady, Cook County sheriff, and Edward
you not only for your warm reception but
R. Vrdolyak, Republican candidate for
only a liberal
also for what you're doing. And God bless
Cook County Circuit Court clerk.
'e just have to
is as seductive
you all.
$ time the big
We can accom-
Bush what he
W Congress, a
Message to the Congress Reporting Budget Deferrals
ican Congress.
September 30, 1988
elp get the job
first-term Con-
To the Congress of the United States:
The details of these deferrals are con-
istrict. He's got
gh-as-nails guy:
In accordance with the Impoundment
tained in the attached report.
Control Act of 1974, I herewith report 10
ere.
deferrals of budget authority now totalling
RONALD REAGAN
olve the drug
$2,024,171,278.
The White House,
re facing some
The deferrals affect programs in Funds
th the liberals
September 30, 1988.
Appropriated to the President, and the De-
The House has
partments of Agriculture, Defense, Energy,
t of good and
Note: The attachment detailing the defer-
Health and Human Services, Justice, State,
at bill is stalled
rals was printed in the "Federal Register"
and Transportation.
: If the Senate
of October 14.
ns today, we'd
that drug bill,
ywhere would
ed behind two
Informal Exchange With Reporters
e.
September 30, 1988
D is a clash of
IS. The liberals
The President. I have a short statement
roblems, woes,
sign. So, goodnight, and pleasant dreams.
here. I had hoped that we'd mark the end
now, that's the
Q. Do you think you'll be able to sign
of the dog-ate-my-homework era of con-
them all by tomorrow?
rn into a self-
gressional budgetry, but it was not to be. I'd
it this country,
Q. Are you disappointed?
hoped to return tonight to sign the last of
The President. Yes.
unities, a glori-
the required 13 appropriations bills, but
L this nation is
d sea and air
they're not all here. So, Congress is going to
the Strategic
have to stay and work so that all remaining
Note: The exchange began at 10:48 p.m. on
to the future
bills will be complete and in a form I can
the South Lawn of the White House.
ation strong, a
f you want to
1259
DECEMBER 4, 1991
MEMORANDUM FOR TONY SNOW
FROM:
MICHELE NIX
SUBJECT:
CHICAGO MERCANTILE EXCHANGE
Merc is sending me tons o' stuff. Re: trade volume, etc. i bios
of all the officers; a backgrounder at Merc; a recent speech
delivered by the CEO; and other goodies.
Dave Prosperi does not work at Merc; he works at the Chicago
Board of Trade. I spoke with his counterpart at Merc, Andy
Yemma, V. Pres of Communications at Merc.
Before addressing the Exchange, the Pres will tour the trading
floor. He will receive a red jacket, which will probably have
"Zapata" printed on it. Attached will also be a badge with the
word "Pres."
The Pres will address 400-500 people from the Upper Trading
Floor. The audience will be seated in the Main Trading Floor,
which usually accommodates approximately 4,000 people at one
time. Approximately 200-300 people will be members of the
exchange -- all wearing their jackets -- many different colors.
The rest of the audience will include CEOs from leading
corporations in the Chicago area -- also the mayor, Sen.
Rostenkowski, and other Chicago politicos.
THE EXCHANGE
The building is 8 years old. This is the 4th building they've
had. Their old building is a couple blocks away. One block from
the building is the Sears Tower.
Monday, Dec. 9, Merc is celebrating the 10th anniversary of the
3-Month Euro Dollar Futures Contract. (Yawn) They will be
bringing in the media and having a big party for this on Monday.
This is the leading futures contract in the world -- used by
commercial banks to hedge short-term interest rate exposure
[enabling banks to handle volatile interest rates] and is one of
the self-corrective measures allowed in free markets.
The Merc is 1 of 4 major exchanges in the Chicago area and thus
Chicago is fast becoming known as a financial services center.
They are the world leader in futures trading. Although the
Merc's market share has decreased over the years from 90% to 50%,
their volume has continued to grow.
For the past 3 years, they have the highest seat value than any
exchange in the world. Their membership runs at approximately
half a million a seat -- greater than the NYSE. There are
roughly 2,700 memberships. Their growth really surged in 1971,
after the Treasury Dept. allowed futures contracts on foreign
currency exchange rates.
The Merc is best known for its SNP 500 index future, which is
used by pension and mutual fund managers to curb risk. The Merc
likes to refer to themselves as leaders in risk management -- and
a mention of this would please the members.
Several of their consultants and former board members are Nobel
Laureates for Economics -- including Merton Miller, who shared
the prize with 2 others in 1990. The University of Chicago,
whose Graduate Business School has a rep for producing Nobel
Prize winners in economics or for hosting them as faculty, is
well-respected by the senior staff at Merc and is a close tie
with the Exchange.
OFFICERS
These three will be with Pres on the Upper Trading Floor.
Chairman: John F. Sandner -- Pres can refer to him as "Jack."
Merc is sending bio. A couple things: Sandner was a Golden
Gloves Boxer. [JOKE] On Oct. 16, 1990, POTUS awarded the
Presidential Citizen's Medal to Tony Zale -- a former boxing
champion and a mentor and trainer to Sandner his youth. Sandner
lead the cause for Zale's recognition. Sandner and POTUS met at
this event. Sandner is also a graduate of Notre Dame -- Irish
football season joke here.
Sandner likes to use the phrase -- "Free markets for a free
society."
President: Bill J. Brodsky. His predecessor was Clayton
Yeutter. JOKE
Chairman Emeritus: Leo Melamed. Was the principle behind their
growth surge in 1971. Very well thought of.
RCV BY:Xerox Telecopier 7020 :12- 5-91 ; 5:35PM ;
9303439-
;# 1
CHICAGO MERCANTILE EXCHANGE
TELEFAX MESSAGE
TO:
Michelle Nix - WHITE House
FROM:
Andy 12/4 Yemma - CME Communications
DATE:
4 pages will follow this cover page.
Please call (312) 930-3436 if there are any problems with this
transmission.
NOTES:
30 South Wacker Drive Chicago, Illinois 60606 312/930-1000
LONDON
NEW YORK
WASHINGTON,DC
TOKYO
RCV BY:Xerox Telecopier 7020 :12- 5-91 ; 5:35PM ;
9303439-
# 2
REMARKS OF MEXICAN PRESIDENT
CARLOS SALINAS DE GORTARI
AT THE CHICAGO MERCANTILE EXCHANGE
APRIL 11, 1991
It was a very moving experience the one I just had walking the floor with
you, and getting the sense, the sense of the meaning precisely of free trade. That's
what you get walking there watching the intense exchange of goods and also of
currencies.
But something that struck me very strongly was to look at the eyes of those
that work down there. They are young people. Not only because of their age, but
mainly because of their attitude. They had in their eyes, brightness, because they
know what's at stake. They know their responsibility, they know they can gain and
lose in a matter of seconds, but that they have an opportunity to exercise their
freedom, their talent, their capacity.
That is precisely why we want free trade. Because my countrymen also want
to have the chance to exercise their freedom, their tremendous capacity to change
the world in which they live, and they have in their eyes that brightness, that
positive perspective, and I want to fulfill their dreams, but not manana, today. That
is precisely my complement.
We in Mexico are committed to trade on a multi-lateral basis. We are
convinced that for the world to increase the standards of living, unilateral free trade
must be among us... We have been promoting freer trade with the rest of the
countries of Latin America. We are going faster with those who have opened
themselves already
This brings me to our commitment to have freer trade north of our border.
This is a proposal we've been promoting. President Bush has stated his full
commitment to make it a reality, as has Prime Minister Mulroney of Canada. I'm
convinced that freer trade would mean more jobs in Mexico, no doubt, but also
more jobs in the U-S as well as Canada.
The past three years thanks to freer trade, a quarter of a million additional jobs
have been created in the U-S, thanks to increased exports to the Mexican
Market We have the studies and they prove and show that free trade will mean
more jobs for Mexico, for the U-S, and for Canada as well
We are fully committed to a very orthodox economic policy. We paid a very
high price for lacking discipline in fiscal policy three years ago. The deficit was
16% GDP and inflation was breaking the 200% level, and our debt was beyond 100
billion dollars. So we have for many years paid a tremendous price to bring
inflation and the economy under control, and we are not willing to repeat the
mistakes of the past. That is why last year the public sector deficit was only half
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a percentage point of GDP and this year we will run a balanced budget for the first
time in this century in Mexico. This has allowed us, as we mentioned before, to
reduced drastically inflation. And let me tell you last year we were able to grow
almost 4% in real terms while bringing the deficit down. That is, it shows that
you can bring the deficit down, get the economy up and keep prices under control.
That's what convinces us to keep this very strict economic policy, and to keep it
permanent.
But while we trade the peso here, we would like your advice on establishing
a Mercantile Exchange in Mexico. It would help us very much because we are
trading some goods like oil Last year at the beginning of August, three days after
Iraq invaded Kuwait, and the price of oil went immediately up, I called a meeting
of the economic cabinet, and I told them that the last time the price of oil had gone
suddenly up, we had ended with 100 billion dollars in debt. So this time we were
going to consider those price increases and those additional resources as not
permanent, and we would not channel them to expenditures. We put the additional
3 billion dollars we got from increasing the price of oil into our international
reserves and nothing for additional expenditures. At the same time, we knew that
oil was reflecting a non-market situation, so I instructed the minister of finance to
create a contingency fund that would get resources from enterprises we were
privatizing.
At the same time we knew that the price of oil would go down soon, so when
it was at the level of about $30, we considered in our budget for this year $17 per
barrel. And last but not least, we wanted to be sure we were going to get those
resources, that revenue, that foreign exchange that we were considering for this year.
So in spite of being an oil exporting country, we decided to go into the options
market. It was a very delicate operation and was kept very private because of the
amount it represented and the precedent it was creating. Well, we did it when the
price of oil was very high, and some people thought it was going to stay there. We
wanted to be sure if the price went below $17, we would guarantee those resources.
I don't know what the price is today, and let me say in quotes I don't even care,
because in the sense that we are covered in this options, we certainly care because
if the price goes up, we benefit, but if it goes down, we are covered, and what is
actually covered is our economic program. We are trying to eliminate uncertainties,
and that in why we docided to take this unprecedented step
In the perspective of the free trade agreement, they would have to have a
competitive status in order to participate in the market that would be created. But
let me tell you, let me emphasize, they would have to fulfill the environmental laws
that we have We are committed to the environmental problem in the rest of the
country. Because we want a clean recovery, we do not want jobs that damage the
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environment. We are not thinking only about this generation. We are thinking
about the next as well.
We want trade, not aid. Those who argue that jobs may be lost with a free
trade agreement in the U-s. Without the free trade agreement, you will lose jobs
inevitably to other regions of the world who are having a higher competitive
advantage that you. Goods that are imported into the U-S come mainly from
countries that have wages similar or higher than yours. The competitive advantage
doesn't come from lower wages but from markets that work from better technology,
better organization. You create those competitive advantages. That's precisely what
we want to do...In the global economy of today the only way to grow on a sustained
basis is through interrelation. If we do not get a free trade agreement, you will
really lose jobs in the U-S to Mexican migrants coming here because they could not
find jobs in their own country.
This is a question of vision. This is a matter of how this region and the
world will be able to cope at the end of this century and the next with other regions
that are getting together with a tremendous competitive advantage. I am convinced
that through a free trade agreement among sovereign nations, we will be able to
create here a region of well being for all its citizens If its a trilateral agreement, it
will be a win, win, win negotiation that will benefit all of our countries
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5
REMARKS OF AUSTRALIAN PRIME MINISTER
JAMES LEE HAWKE
AT THE CHICAGO MERCANTILE EXCHANGE
JUNE 20, 1988
We've got our priorities worked out, we came to Chicago first, then we go to
New York later we of course are very interested to see the operations of the
Exchange here because it fits very concisely with the philosophy that we have
developed in our country. We want to see a freeing up of transactions within our
own economy and between the economies of the world. My message in the United
States as I said to you briefly at breakfast Jack, will be here in Chicago, New York
and in Washington will be a very simple one, and that is that the world has
prospered, when you look at its history, when it has been prepared to trade and
eliminate its possible barriers between nations. That's true within nations and it's
true between nations, and to the extent that your institution here provides a greater
elasticity of opportunity for allowing firms the types and amounts of risk that they
want to assume in their operations. So it is to say that is consistent with the
approach we've adopted in our country.
We have tried to create within Australia an economy, essentially a de-regulated
economy, and one which we are increasingly trying to make outward-looking and
competitive. The problem of the Australian economy we inherited is that we had
a very high profile of exposure to sudden and deep variations of prices of
commodities. So we've tried to create an economy in which our services and our
manufacturing sectors will grow in importance. And we have very substantially
achieved that to this point. Our proportion of cattle merchandise exports constituted
by manufacturers have increased from 21% to 26% in the period that we've been
in office. We are seeing a very significant increase in the exports of manufactured
goods.
And of course one of our great sources of strength is tourism, which is growing
at a very rapid rate. In terms of trying to create a more competitive, more exposed
economy, just recently a few weeks ago, Jack introduced a decision to affect a very
significant reduction in tariffs, which will mean over four years a 30% reduction in
the affective tariff rate in our country. And internally, as far as our own budgetary
situation is concerned, the important statistic is that when we came to office, we
were looking at about a 5% GDP deficit. In five years we've now eliminated that
and we're not looking at a significant surplus. So that when we come here to your
country, we'll try to tell your administration what they should be doing to about
balancing the budget
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2
6TH REFERENCE of Level 1 printed in FULL format.
Copyright (c) 1991 Mead Data Central, Inc.
BILL TRACKING REPORT
102nd Congress 1st Session
U. S. House of Representatives
HR 223
1991 H.R. 223
COMMODITY EXCHANGE ACT AMENDMENT
DATE-INTRO: January 3, 1991
LAST-ACTION-DATE: January 3, 1991
SPONSOR: Representative Neal Smith D-IA
TOTAL-COSPONSORS: 0 Cosponsors
SYNOPSIS:
A bill to amend the Commodity Exchange Act to require public
disclosure of certain information relating to sales of commodities
for export, and for other purposes.
ACTIONS:
Committee Referrals:
01/03/91 House Agriculture Committee
Legislative Chronology:
1st Session Activity:
01/03/91 137 Cong Rec H 60
Referred to the House Agriculture Committee
BILL-DIGEST:
Amends the Commodity Exchange Act to require certain exporters of wheat,
corn, or soybeans to report specified export sales information to the
Commodity Futures Trading Commission. Requires the Commission to make such
information available to the public. Directs the Commission to revoke the
registration (for at least 12 months) of any broker violating these
provisions or accepting an order from any person violating these provisions.
CRS Index Terms:
Agriculture; Agriculture in foreign trade; Commodity exchanges; Corn;
Exports; Government paperwork; Soybeans; Wheat
CO-SPONSORS:
No cosponsors have been added to HR 223
LEXIS'NEXIS'LEXIS'NEXIS
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3
9TH REFERENCE of Level 1 printed in FULL format.
Copyright (c) 1991 Mead Data Central, Inc.
BILL TRACKING REPORT
102nd Congress 1st Session
U. S. House of Representatives
HR 707
1991 H.R. 707
COMMODITY FUTURES IMPROVEMENTS ACT OF 1991
DATE-INTRO: January 29, 1991
LAST-ACTION-DATE: November 6, 1991
SPONSOR: Representative Glenn English D-OK
TOTAL-COSPONSORS: 3 Cosponsors: 2 Democrats / 1 Republicans
SYNOPSIS:
A bill to improve the regulation of futures trading, authorize
appropriations for the Commodity Futures Trading Commission, and for
other purposes.
ACTIONS:
Committee Referrals:
01/29/91 House Agriculture Committee
03/07/91 Senate Agriculture, Nutrition, and Forestry Committee
Legislative Chronology:
1st Session Activity:
01/29/91 137 Cong Rec H 781
Referred to the House Agriculture Committee
02/06/91 137 Cong Rec H 993
Cosponsors added
02/19/91 137 Cong Rec D 151
House Subcommittee on Conservation, Credit,
and Rural Development approved for full
Committee action, amended
02/26/91 137 Cong Rec D 188
House Agriculture Committee ordered
reported, amended
02/27/91 137 Cong Rec H 1181
House Agriculture Committee received
permission to have until 6:00 p.m. on
March 1, 1991 to file a report
03/04/91 137 Cong Rec H 1341
Reported in the House on March 1, 1991
amended (H. Rept. 102-6)
03/05/91 137 Cong Rec H 1350
House agreed to suspend the rules and pass
by a recorded vote of 395 yeas and 27 nays
and 1 voting "present" (Roll No. 27)
03/05/91 137 Cong Rec H 1350
House agreed to amend the title
03/07/91 137 Cong Rec S 2923
House requested the concurrence of the
Senate
03/07/91 137 Cong Rec S 2924
Referred to the Senate Agriculture,
Nutrition, and Forestry Committee
04/18/91 137 Cong Rec S 4683
Passed in the Senate by a recorded vote of
LEXIS'NEXIS'LEXIS`NEXIS
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BILL TRACKING REPORT HR 707
90 yeas and 8 nays (Vote No. 45), after
striking all after the enacting clause and
inserting in lieu thereof the text of
S. 207, amended, by voice vote
04/18/91 137 Cong Rec S 4683
Senate Agriculture, Nutrition and Forestry
Committee was discharged from further
consideration
05/14/91 137 Cong Rec S 5815
Senate appointed as conferees Sens. Leahy,
Boren, Heflin, Conrad, Lugar, Dole, and
Cochran
05/15/91 137 Cong Rec H 3039
Senate requested the concurrence of the
House
05/15/91 137 Cong Rec H 3039
Senate insisted on its amendments and
requested a conference with the House
05/15/91 137 Cong Rec H 3039
Senate appointed as conferees Sens. Leahy,
Boren, Heflin, Conrad, Lugar, Dole, and
Cochran
10/02/91 137 Cong Rec H 7202
House disagreed to the Senate amendment to
the bill, and agreed to a conference --
appointed conferees from various committees
10/02/91 137 Cong Rec H 7202
House agreed to a conference with the
Senate, and appointed as conferees -- from
the Agriculture Cmte., for consideration of
the House bill, and the Senate amend., and
changes committed to conference, Reps. de la
Garza, English, Staggers, Stallings, Nagle,
Sarpalius, Johnson (SD), Huckaby, Glickman,
Penny, Espy, Long, Stenholm, Tallon, Coleman
(MO), Smith (OR), Gunderson, Combest, Allard
Barrett, Nussle, Boehner, and Roberts
10/02/91 137 Cong Rec H 7202
House agreed to a conference and appointed
as conferees --- from the Banking, Finance
and Urban Affairs Committee, for
consideration of section 263 and title III
of the Senate amendment, and modifications
committed to conference -- Reps. Gonzales,
Annunzio, Neal of North Carolina, Hubbard,
LaFalce, Oakar, Wylie, Leach, McCollum, and
Roukema
10/02/91 137 Cong Rec H 7202
House agreed to a conference and appointed
as conferees -- from the Energy and
Commerce Committee, for consideration of
section 263 and title III of the Senate
amendment, and modifications committed to
conference -- Reps. Dingell, Markey,
Scheuer, Synar, Eckart, Slattery, Lent,
Rinaldo, Moorhead, and Ritter
11/06/91 137 Cong Rec D 1386
Conferees met on the differences between
the Senate- and House-passed versions but
did not complete action thereon and recessed
subject to call
BILL-DIGEST:
0418/91 (Measure passed Senate, amended, in lieu of S. 207, roll call 45
(90-8) ) Futures Trading Practices Act of 1991
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BILL TRACKING REPORT HR 707
Title I: Commodity Futures Trading Commission; Funding and Personnel
Amends the Commodity Exchange Act to authorize FY 1992 through 1996
appropriations for the Commodity Futures Trading Commission (Commission).
Authorizes the Commission to requests eight additional Senior Executive
Service positions. Directs the Commission to establish a service fee
schedule. (Currently authority is discretionary.) Establishes annual FY 1992
through 1996 aggregate fee limits. Excludes from coverage under such Act
any deposit (as defined by the Federal Reserve Act and related regulations)
offered by: (1) an insured depository institution; (2) an insured credit
union; or (3) a Federal or State branch or agency of a foreign bank.
Excludes from coverage under such Act any loan: (1) that is a consumer
credit transaction subject to the Truth in Lending Act; (2) made by an
insured depository institution or credit union; or (3) made by a foreign
bank to a specified peson or made by a Federal or State branch of a foreign
bank.
Title II: Futures Trading Practices Subtitle A: Floor Surveillance and
Dual Trading
Requires every contract market to maintain a system to monitor trading to
detect and deter violations of the Act relating to the making of trades and
the execution of customer orders. Requires any audit trail system that is
part of such a monitoring system to capture transaction times independently,
promptly, precisely, and completely, including a record of the time a
customer order is received on the exchange floor and received and exectuved
by the floor broker. Authorizes audit trail exemptions for: (1) small
exchanges with demonstrated compliance; and (2) certain categories of
customer orders. Requires biennial Commission assessments of each market's
trade monitoring system. Directs the Commission to issue deficiency orders
requiring timely correction of any such system failing to meet standards.
Requires suspension of dual trading, except under specified circumstances,
on any market subject to such an order. Bars the placing of oral orders
except according to certain Commission rules.
Subtitle B: Broker Associations
Prohibits trading between floor traders or brokers and affiliated
customers. Requires disclosure of formal or informal business affiliations
between floor brokers and traders.
Subtitle C: Governing Structure
Prescribes meaningful representation on exchange boards of brokerage
firms, commodity producers and consumers, and floor traders and brokers.
Specifies diversity of membership that must prevail on major disciplinary
panels.
Subtitle D: Floor Trader Registration
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BILL TRACKING REPORT HR 707
Requires floor trader registration.
Subtitle E: Penalties
Revises penalties for violations of the Act. Makes Commission merchants
liable to customers for any losses caused by the malfeasance of their chosen
floor brokers. Allows customers to sue floor brokers for punitive damages of
up to double actual losses. Authorizes the Commission to require customer
restitution. Increases penalties for violations under such Act. Repeals
the requirement that the Commission consider financial circumstances when
assessing a civil penalty. Suspends a person's registration and trading
privilege for failure to pay a civil monetary penalty. Authorizes the
Commission to seek monetary penalties in civil court. Makes it a felony to
provide false information to a contract market, board of trade, or futures
association. Applies criminal penalties for willful and knowing violations
of such Act. Authorizes class action suits against registered persons if
the Commission has issued final rules permitting such actions. Directs the
Commission to make a study of Commission and contract market penalties and
related industry guidelines.
Subtitle F : Assistance to Foreign Futures Authorities
Provides for cooperation with foreign futures authorities (as defined by
this Act) with regard to: (1) subpoena authority; (2) investigative
assistance; (3) information disclosure and receipt; and (4) payment for
necessary investigative expenses.
Subtitle G: General Provisions
Defines specified terms for purposes of such Act, including "floord
trader" and "foreign futures authority." Authorizes the Commission to
require futures commission merchants to provide information on the
activities of affliated persons (as defined by this Act) that are reasonably
likely to affect the financial or operational conditions of such entities.
Sets forth: (1) exemptions from such requirements; and (2) confidentiality
provisions. Requires the Commission to publish any disserting or separate
opinions whenever it publishes any opinion, rule, other official rule.
Requires ethics training for new registrants. Grants the Commission
authority to conduct limited undercover investigations where it has reason
to believe that violations of the Act may be taking place and the Department
of Justice has declined to do 50. Grants the General Accounting Office
(GAO) access to information maintained by self-regulatory organizations,
subject to specified confidentiality requirements. Revises provisions
regarding Commission registration authority. Authorizes the Commission to
suspend or modify the registration of a person charged with a felony that
reflects on such person's fiduciary fitness. Prohibits insider trading.
Directs the Commission to: (1) facilitate the development of computerized
trading as an adjunct to the open out cry auction system; and (2) seek to
remove any foreign trade barriers on the international use of electronic
trading systems. Directs the Commission to consider agricultural interests
in discharging its duties and functions under such Act. Permits futures
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BILL TRACKING REPORT HR 707
associations to appeal certain Commission decisions. Requires each futures
association to adopt telemarketing fraud disciplinary criteria, which shall
include a prohibition on a person who has solicited a new account by
telephone from entering any orders for such account for three days after the
customer has signed the risk disclosure statement. Provides for nationwide
service of process and venue in U.S. district courts. Directs GAO to study
delivery points for agricultural commodity contracts.
Title III: Intermarket Coordination
Requires any contract market in a stock index futures contract to file
with the Board of Governors of the Federal Reserve System any rule
establshing or changing margin levels on stock index futures. Authorizes the
Board to direct an exchange to adjust margin levels. Authorizes the
Commission to exempt any agreement, contract, or transaction from Commission
requirements when in the public interest to do so if such agreement will:
(1) be between institutional participants; (2) be in connection with a line
of business or for hedging risk management; and (3) not adversely affect the
Commission or any contract market. States that such Act shall not apply to
a swap transaction entered into: (1) for hedging or business-related risk
management; and (2) where each party expect to make specified payments.
Establishes a function-based determination of whether or not a hybrid
commodity instrument falls within Commission jurisdiction. States that there
would be no Commission jurisdiction in the case of an instrument: (1)
deriving less than 50 percent of its value in commodity option, to the
extent that it has commodity option elements; and (2) expected to have less
than 50 percent of its change in value owing to movement in a commodity's
specified price or in the terms and conditions of the transaction, to the
extent that the instrument has futures contract elements. Excludes from
such Act stock index participations approved for trading by the Securities
and Exchange Commission by April 11, 1989, or pending approval on or prior
to December 31, 1990. Directs the Commission to utilize existing
authorities to facilitate the registration of certain persons associated
with a broker or dealer for the pruposes of marketing stock index futures
products to the public.
Title IV: Effective Date
Sets forth the effective date for this Act.
CRS Index Terms:
Agriculture; Administrative procedure; Agricultural economics; Agriculture
in foreign trade; Auditing; Brokers; Business ethics; Civil procedure;
Commodity exchanges; Computers; Congressional oversight; Congressional
reporting requirements; Exports; Fines (Penalties); Foreign exchange
futures; Foreign trade; Fraud; Futures trading; Independent regulatory
commissions--Authorization; Insider trading in securities; Law
enforcement--International cooperation; Program trading (Securities);
Securities regulation; Telemarketing; Telephone; Undercover operations;
White collar crime
LEXIS'NEXIS'LEXIS'NEXIS
Sept. 30 / Administration of George Bush, 1991
these deferrals are contained in the at-
to throw out the first pitch. [Laughter]
leng
tached report.
Marlin thinks I don't notice these things,
com
George Bush
but last time I gave a press conference he'd
that
left his rosin bag there at the podium in the
Cou
The White House,
newsroom. [Laughter]
van
September 30, 1991.
to S
Commerce in Miami, it's always been an
ven
adventure. Dade County now numbers 2
Y
Note: The attachment detailing the defer-
million residents, but in an exciting sense
rals was published in the Federal Register
plai
it's still an outpost of opportunity. Your or-
on October 7.
ratl
ganization's symbol, the beacon on the old
larg
Cape Florida Lighthouse, reminds us that
rate
less than a century ago, south Florida was a
ren
frontier less developed and more forbidding
pay
Remarks at the Beacon Council Annual
than the Western deserts. And in the year
ing
Meeting in Miami, Florida
1900, Miami was a sultry settlement of
gai
fewer than 1,700 souls. And today, Miami
September 30, 1991
up
serves as the gateway of the Americas, a
An
Thank you for that welcome back. And
powerful magnet for economic growth.
job
I'm delighted to be here. And Jim Batten,
Here, you look beyond your borders, and
thank you, sir. What is it about the water in
beyond your time. And you take seriously
with
Miami? I think about Alvah Chapman and
your obligation to build a prosperous econo-
cro
all he did as a civic leader in addition to
my not just for today, but for the future.
al
running Knight-Ridder. And now in that
For instance, you do care deeply about
ha
same marvelous, unselfish tradition, you
education, and your schools reflect that
de
have Jim Batten who introduced me here
commitment. Educators across our country
so]
today, and I'm very grateful to him for that
admire Dade County's international schools
en
warm introduction. And I listened carefully
program. Graduates of the program will
ar
to his counsel. And, yes, the Federal Gov-
meet all the requirements for university ad-
CO
ernment must help when you have active
mission not only in the United States but
citizens like Miami, trying to take care of
also in participating foreign countries.
le
their own problems. We have a role. We
This sort of imagination, this commitment
es
understand it. And we want to be your
to quality lies at the heart of our adminis-
in
partners in these efforts for economic de-
tration's America 2000 strategy, to spark a
W
velopment. So, thank you, sir, very, very
veritable revolution in education. Miami
much.
can take pride that our Secretary of Educa-
I want to thank John Anderson, the coun-
tion, Lamar Alexander, this month gave
C
cil president. I want to salute Burt Landy,
special recognition to the Dade County
at
the incoming chairman. And I would like to
schools' innovations.
50
just say what a great job your outgoing
But you should not rest on today's laurels
tv
chairman has done. [Laughter] I'm entitled
because you'll need to do even better in the
to my opinion. Now, wait a minute here.
future.
b.
I'm also pleased that one of the repre-
You know, we talk a lot at our students
n
sentatives from here, Ileana Ros-Lehtinen,
and about our students. Well, tomorrow I
fi
flew down with us. And your State insur-
will be going into a junior high classroom to
e
ance commissioner is with us today. And I
talk to and with our students about their
t]
hope I'm not neglecting others, but that is a
role in this revolution.
ic
marvelous turnout.
All across the United States via CNN and
c
Jeb, I've got to hand it to you. You've
PBS, other students in their own schools
a
been telling me Miami is friendly territory,
will be able to hear this message about the
and I'm beginning to see what you mean.
need for educational excellence. And we're
Imagine winning a new major league base-
determined to deepen the involvement of
ball franchise and naming it for my Press
parents. We want to give parents the free-
Secretary. I hear Marlin, Fitzwater that is,
dom to choose their children's schools,
is serious about these rumors that he'll get
public, private, or parochial. We're chal-
1366
Administration of George Bush, 1991 / Sept. 30
ter]
lenging parents, students, businesses, and
a bill that incorporates many of our sugges-
ags,
community leaders to help develop schools
tions. It's important that you urge the
e'd
that simply break the mold. Because Dade
House to do the same thing. We must pre-
the
County already is in the forefront, in the
vent the criminals from holding up our
vanguard, I count on you to light the way,
economy. And we need fewer stickups and
to show the whole Nation how we can rein-
an
more lockups, and this bill will help get the
2
vent American education.
job done.
ense
You also build a better future with just
On a more positive note, Miami faces an
or-
plain common sense. You invite business,
exciting future in international banking and
old
rather than shooing it away. Miami enjoys a
financial services. Among American cities,
that
large tax base with some of the lowest tax
rates in the country. But one important tax
only New York conducts more foreign
as a
remains not just for Miamians but for tax-
banking business. And with expected
ding
payers all across the country. And I'm talk-
growth in foreign trade, the market for
year
ing here about the Federal tax on capital
Miami-based financial services should grow
t of
gains. A capital gains tax cut will boost start-
ever more robust. And unfortunately, you
iami
up companies and other small businesses.
must be dealing now, at the Federal level
as, a
And these are the primary sources of new
at least, with banking laws that lag way
jobs in our country.
behind our times. Our administration wants
and
And I may be talking to the choir here
to bring them up to date.
busly
with some of the entrepreneurs in this
I worry about the economy. Jim Batten
cono-
crowd, but that's because I want you to sing
touched on it. These are tough times. But
ture.
a louder chorus. Some folks in Congress still
we can do something about it. We sent
bout
haven't gotten the message. They don't un-
Congress a comprehensive package of bank-
that
derstand that a capital gains tax cut is not a
ing reforms earlier this year. Our plan
intry
sop for the rich. It offers a helping hand to
would protect depositors' hard-earned
hools
entrepreneurs and dreamers, people who
money, strengthen and modernize our
will
aren't rich today but whose contributions
banks and financial institutions, and make
y ad-
could enrich our entire society tomorrow.
them more competitive in global markets.
S but
A capital gains tax cut also will help be-
So, this is no time for delay. And this is no
leaguered industry, especially the real
time for anticompetitive measures. If we
ment
estate business. And a cut will produce an
want strong banks and a strong economy,
ninis-
immediate increase in property values,
Congress must enact comprehensive bank-
ark a
which in turn can offer new hope for strug-
ing reforms. And I might add, parentheti-
Miami
gling financial institutions.
cally, we also need a full and vigorous team
duca-
So, I hope you'll make the truth vivid to
on the Federal Reserve. This is a matter on
gave
Congress. Talk about your own experiences
which the United States Senate needs a
ounty
and needs. Tell them to cut the capital
loud wake-up call. Two of the seven seats
gains taxes and give our people jobs. The
on the Fed sit empty right now. And my
aurels
two things are interlocked.
nomination for the first vacancy, Larry
in the
And we also must fight as a Nation to
Lindsey, won an overwhelming endorse-
battle another tax, an invisible tax. And
ment from the Senate Banking Committee,
idents
many in this room have been in the fore-
but one or two Senators have held up his
row I
front of this. I'm talking about crime. Crime
nomination for months. And given the
om to
exacts enormous costs. I think of the job
problems the country faces, the financial
their
that many of you did in battling the narcot-
problems, that's just plain inexcusable.
ics coming into this country, battling the
And when the Senate confirms Larry
N and
crime related to all of that. I'm talking
Lindsey, we hope it will move quickly to
chools
about crime. Crime exacts enormous costs
confirm Susan Phillips, my choice for the
ut the
in security systems, in business losses, in
other open seat. The Senate also needs to
we're
workers' morale, in pain, and in fear.
act on my renomination of Alan Greenspan
ent of
Our administration has proposed a com-
as Chairman of the Federal Reserve Board.
e free-
prehensive crime package that offers
He's doing a good job. There's no contro-
chools,
people hope, and it gives them a chance to
versy, but they ought to get on about the
chal-
reclaim their streets. The Senate has passed
Nation's financial business, it seems to me.
1367
Sept. 30 / Administration of George Bush, 1991
The Fed faces a host of important deci-
Mexico has enacted breathtaking economic
sions in monetary policy, in bank regula-
reforms. And now, with the Fast Track pro-
tion, and international affairs. And it
cedures in place, we are negotiating with
shouldn't have to address them with any-
Mexico and Canada to create a North
thing less than a full team, a team dedicat-
American free trade agreement that will
ed to ensuring price stability and fostering
create an open market of 360 million con-
economic growth.
sumers, one that produces $6 trillion a year
Our administration wants to take on
in economic output.
issues that you care about. And here I've
Our prospects south of Mexico look just as
touched on just a few: the education, crime
exciting. We have signed framework trade
and economic growth, the capital gains tax,
and investment agreements with 28 coun-
Fed and banking reform. And I could talk,
tries in this hemisphere. And I have asked
too, about energy or transportation or
Congress to act promptly on legislation for
homeownership or tenant management in
debt reduction and a multilateral invest-
housing or in defense. But the point is, we
ment fund for the hemisphere. These
need Congress' help if we want to move
forward toward our goals. And looking out
simple acts will let us put our Enterprise for
the Americas Initiative into full effect and
on the enormous collection of talent, of
business talent, I can't resist asking you to
make Miami a key gateway to our Nation's
economic future.
volunteer in helping me persuade Congress
to get moving, not tomorrow, not next year,
I might say, having challenged the Con-
not the next congressional session, but now.
gress to take certain action on the domestic
And now I'd like to briefly look ahead. As
side, that we approach this Fast Track au-
we gather here, we can almost see a new
thority in a totally nonpartisan way. It
age of liberty dawning around the globe. I
wasn't Democrat; it wasn't Republican; it
can't think of a more exciting time in the
was just sound, good business that will help
history of our country to be President than
our neighbors and, in my view, will create
right now. The changes around the world
job after job right here in the United States
are amazing, and freedom and democracy
of America. It was government at its very
is on the move, and I think peace has a
best, and now we're working to hammer
much better chance than it's had in a long,
out an agreement that Congress can accept,
long time.
a trade agreement with Mexico and Canada
Now, I spoke of that new age just this
that Congress can enthusiastically endorse.
past Friday night in an address to the
And it shows that it can be done when you
American people. And because of the dra-
reach out and work across the aisle Republi-
matic changes that have swept our world,
can and Democrat and even Independent.
particularly in the Soviet Union, we are
So, that is what we've got to do, and I must
now able to take equally dramatic steps to
say, I think this sets a good example. And I
make our world safer from the threat of
hope when we bring these things to frui-
nuclear weapons. I am very pleased with
tion, Miami and south Florida will be the
the positive worldwide response to our an-
immediate beneficiaries of what I think is
nouncement, particularly from President
farsighted foreign policy.
Gorbachev.
But our hopes for the future involve
I believe that this announcement the
more than just the promise of trade, impor-
other day really does have the chance of
tant though that is. We also see a dramatic
removing fear from the minds and hearts of
increase in individual freedom and
our young people in schools, not just in our
empowerment throughout our region.
country, but all around the world.
Democratic elections, respect for human
We are seeing that new age of democracy
rights, economic liberty are fast becoming
and freedom also dawn right here in our
the rule, not the exception.
own hemisphere. With each passing day, we
This phenomenon just begs for a catchy
move closer to realizing the dream of free
name. Here's one, "La revolución sin fron-
trade, from the Arctic Circle to the Strait of
teras," the revolution without frontiers.
Magellan. Under President Carlos Salinas,
Now some here will know that I stole the
this outstanding young President of Mexico,
term. It comes from the bad old days of
1368
Administration of George Bush, 1991 / Sept. 30
C
Sandinista rule in Nicaragua. When Marxists
community. You're an example to the rest
used this slogan, it signaled a threat to free-
of the country. And I salute you, I'm grate-
h
dom and sovereignty of Nicaragua's neigh-
ful to you, and I might just say on a very
h
bors. Threat to the sovereignty, threat to
personal basis, thanks for embracing my
ill
the freedom.
son, our daughter-in-law. We've got a
n-
And how times have changed. Today, a
granddaughter here, and these Bushes feel
ar
real liberation movement sweeps the globe.
that they're an integral part of the love and
And it threatens no one's peace or sover-
honor that is Miami. Thank you all very,
eignty, no one's right to worship, no one's
as
very much.
de
freedom to buy and sell, or to imagine and
create. It's the revolution of democracy.
n-
Note: The President spoke at 3:33 p.m. at
ed
And it makes possible the equally startling
the James L. Knight International Center.
for
revolution of ideas that gives rise to eco-
In his remarks, he referred to James Batten,
nomic progress.
st-
chairman and chief executive officer of
In closing, it's absolutely impossible to
ese
Knight-Ridder, Newspaper, Inc.; Alvah
for
visit Miami these days without feeling that
Chapman, director and chairman of the ex-
nd
this revolution soon will sweep away our
ecutive committee of Knight-Ridder; John
hemisphere's last dictator, Fidel Castro. Al-
n's
Anderson, president of the Beacon Council;
ready, a savvy team of experts from the
Burt Landy, chairman of the Beacon Coun-
Greater Miami Chamber of Commerce has
cil; John Ellis (Jeb) Bush, the President's son
on-
prepared a detailed report on the economic
stic
and former chairman of the Beacon Coun-
opportunities that will emerge along with
cil; Representative Ileana Ros-Lehtinen;
au-
freedom in Cuba. Trade and investment
It
State insurance commissioner Tom Galla-
will offer new hope to the Cuban people
; it
gher; Marlin Fitzwater, Press Secretary to
who have suffered enough despotism and
elp
the President; Secretary of Education
deprivation.
eate
Lamar Alexander; Larry Lindsey and Susan
Remember how we used to dream about
ates
Phillips, Presidential nominees to the Feder-
a free Cuba and a prosperous, free hemi-
al Reserve Board; Alan Greenspan, Chair-
ery
sphere? Well, it's no longer a fantasy. It's
man of the Federal Reserve Board; Presi-
mer
inevitable in my view. Soon our new world,
ept,
dent Mikhail Gorbachev of the Soviet
our hemisphere of the Americas, will be a
ada
Union; President Carlos Salinas de Gortari
community where liberty, peace, and pros-
of Mexico; President Fidel Castro Ruz of
orse.
perity know no frontiers. And Miami will
Cuba; and the President's daughter-in-law
you
flourish, you can see it clearly, as its hub
ubli-
Columba Garnica Bush and granddaughter
and as its beacon.
lent.
Noelle. Following his remarks, the President
Some have suggested to me that now is
nust
departed for New Orleans.
the time, given the enormous changes in
nd I
Eastern Europe, changes in the Soviet
frui-
Union, the changes for democracy south of
the
Mexico, that now is the time to alter our
ak is
policy towards Cuba.
Remarks at a Fundraising Dinner for
Let me tell you something, I'm not going
Governor Buddy Roemer in New
volve
to change it one single bit. The Cuban
Orleans, Louisiana
ipor-
people are entitled to have this wave of
September 30, 1991
natic
democracy fulfill their dreams. And we
and
want to be a part of that answer, a part of
Thank you all very, very much. Thank
gion.
that new democracy in which many people
you, Buddy, and thank all of you. Thank
uman
in this room can have such an active role as
you so very much for that warm welcome.
ming
we try to bring commerce and prosperity to
I'm just delighted to be here. It was a won-
people that have been deprived too long
derful introduction, recalling why the
atchy
because they've been the victim of totalitar-
author Pearl Buck wrote, "I fell in love with
fron-
ianism.
Louisiana generally and New Orleans in
itiers.
It's a great pleasure to be back here in
particular." Well, thinking back to the 1988
e the
Miami today. As I say, I think of the activity
convention, this town reminds me of win-
ays of
and the energy of Miami's civic business
ning. And I have a feeling that, come Octo-
1369
Apr. 7 / Administration of George Bush, 1991
objectives which we so beautifully have
I've been looking forward to this meeting
achieved. None. And I hope that helps clari-
today. We've had a series of these, as some
fy it.
of you know. Some have attended one in
Thank you all very much.
Washington, then we had one out in Cali-
fornia, and now this. Because I do want to
Note: President Bush's 79th news confer-
discuss with you two issues that are vitally
ence began at 11:51 a.m. in the Briefing
important to all of us: America's ability to
Room at Ellington Field. President Salinas
compete in the global marketplace and our
spoke in Spanish, and his remarks were
ability to negotiate with our trading part-
translated by an interpreter. Marlin Fitz-
ners. That's what's at stake right now. I've
water is Press Secretary to President Bush.
said many times that the hard work of free-
dom awaits us. And now, I'm asking for
your help in that challenge.
I love the way that Mexico's very able
Remarks at a Meeting With Hispanic
President Carlos Salinas talked yesterday
Business Leaders in Houston, Texas
about the vision-the vision of free and fair
April 8, 1991
trade between the two countries. It's a
vision that we share. Last month, I asked
Thank you all very much. And Miguel,
Congress to support this Fast Track author-
thank you for your leadership for the Great-
ity in trade negotiations. You see, Fast
er Houston Partnership. And to all of you
Track is a way of assuring our trading coun-
who managed to get through security and
terparts that the agreements that they
struggle in here, why-[laughter]-apolo-
reach with us at that bargaining table, the
gies for the delay, but I'm sure glad to see
one they reach with our negotiators will be
you.
the same ones that Congress has a chance
Even though these lights are bright, I can
to vote on, up or down. Some are alleging
see many, many friendly faces out there,
Congress has no say. And that's simply not
people with whom I've worked for one
true.
cause or another over the years. You have
Fast Track doesn't affect Congress' power
this wonderful way of making a guy feel at
to accept or reject trade agreements. But it
home. So, thank you for coming. Lionel
does prevent these 11th-hour changes to
Sosa, I love those ads. They're terrific. I
agreements that have been hammered out,
believe they're going to be very effective.
changes that force everyone to start all over
And I thank you for your energy and your
again.
expertise. Those are the people that-also,
We need Fast Track authority to pursue
would thank all of those who are helping
vital trade objectives: the North American
you on this project.
free-trade agreement, the Uruguay round,
To my old friend, Bob Mosbacher, our
and the Enterprise for the Americas Initia-
able Secretary of Commerce, I'm glad to
tive. If we lose our Fast Track authority, we
see him. He's slightly jet lagged out, having
lose any hope of achieving these three vital
just returned from Japan on yet another
agreements. The North American free-trade
mission to try to encourage our exports-a
agreement, the Uruguay round, and the En-
mission in favor of free and fair trade-
terprise for the Americas Initiative. We lose
something we must continue to press for,
trade, we lose jobs, and we jeopardize eco-
whether it's halfway across the world or
nomic growth.
whether it's in relation to our own neigh-
Here's the key: A vote against Fast Track
bors to the south. And Bob is doing a great
is a vote against things that we all hold
job, a leadership role in fighting for free
dear-prosperity at home and growth in
trade because he knows as I do, and as all of
other lands. It ignores the dramatic and
you do, that the freer the trade is, the more
wonderful changes in the world economy.
job opportunities there are for the people of
We want to play a leading role in that
the United States of America, say nothing of
emerging, exciting world, and we don't
our trading partners. And so, I'm glad to
want to hide from it. We want to join in the
see him back from his mission.
thrilling business of innovation, and we do
408
Administration of George Bush, 1991 / Apr. 8
eting
not want to chain people to outmoded tech-
any agreement may have on American jobs,
nologies and ideas.
some
American companies, American exports.
ne in
Right now, we have the chance to expand
Other Members of Congress say that they
Cali-
opportunity and economic growth from the
worry about wage rates or environmental
Yukon to the Yucatan. Think of it. The
ant to
quality, health and safety issues. I believe, I
vitally
North American free-trade agreement
firmly believe that concern about those
ity to
would link us with our largest trading part-
very same issues is the strongest argument
d our
ner, Canada, and our third-largest trading
for support for Fast Track.
part-
partner, Mexico. It would create the largest,
Let me just talk about those concerns.
richest trade zone on Earth: 360 million
V. I've
We've already seen what the reduction in
f free-
consumers in a market that generates $6
trillion in output in a single year.
Mexican tariffs has done for our exports-
ng for
A unified North American market would
American exports to Mexico. A free-trade
let each of our countries build on our own
agreement would eliminate the remaining
y able
strengths. It would provide more and better
tariffs entirely. And that would stimulate
terday
jobs for U.S. workers. Let me repeat that
exports, create new jobs, generate wealth,
nd fair
one. It would provide more and better jobs
and hope, I might add, on both sides of the
It's a
border.
for U.S. workers. It would stimulate price
asked
competition, lower consumer prices, im-
Let's take a look at the impact on Ameri-
author-
prove product quality. The agreement
can companies. When trade barriers vanish,
,, Fast
would make necessities such as food and
goods flow freely across borders. And every-
g coun-
clothing more affordable, more available to
body-businessmen and workers, to farmers
t they
our poorest citizens. It would raise produc-
and consumers-reaps the benefits of
ole, the
tivity and produce a higher standard of
growth.
will be
living throughout the continent.
Consider the environment. The North
chance
Let me illustrate the stakes involved in
American free-trade agreement fits into a
alleging
the Fast Track debate by discussing the
winning strategy of improving environmen-
ply not
Mexican component of the North American
tal quality. Opponents of Fast Track and
free-trade agreement. Trade with Mexico
the trade pacts forget that prosperity offers
, power
has helped both our countries.
the surest road to worker safety, public
S. But it
Just 4 years ago, we had a $4.9 billion
health, and indeed, environmental quality.
nges to
trade deficit with Mexico. Since then, we've
This administration wants to ensure that
red out,
cut that deficit by two-thirds, to $1.8 billion.
Mexican economic growth goes hand in
all over
This turnaround took place in part because
hand with the environmental protection.
Mexico's President believes in free trade.
Our EPA is already assisting the Salinas
pursue
He's slashed tariff rates for some goods from
government with its environmental pro-
merican
100 percent to 10 percent. One result: our
grams. President Salinas has shown that he's
/ round,
exports to Mexico have increased 130 per-
serious about cleaning up the environment,
as Initia-
cent in the past 4 years.
by requiring all new cars to have catalytic
brity, we
This export boom has created more than
converters, and recently, I'm sure all of us
ree vital
300,000 new jobs here in the United States
noticed with pride and pleasure the fact
ee-trade
of America. And each additional billion dol-
that he shut down Mexico's largest oil refin-
1 the En-
lars in exports creates 20,000 new jobs here
ery because, frankly, it was just too much
We lose
in the United States.
pollution into the air. I know that President
dize eco-
I don't have to tell anyone in this room
Salinas cares deeply about his nation and its
about Mexico's market potential: 85 million
people and that he means business when he
ast Track
consumers who want to buy our goods. Nor
says he wants to clean up Mexico's air and
all hold
do I have to tell you that as Mexico grows
water.
rowth in
and prospers, it will need even more of the
And finally, consider the matter of work-
atic and
goods we're best at producing: computers,
ing conditions in Mexico. As our trade with
economy.
manufacturing equipment, high-tech and
Mexico has grown, so have the wages of
e in that
high-value products.
Mexican workers. Indeed, Mexican wages
we don't
Unfortunately, we've got a tough fight
have risen very quickly in recent years,
oin in the
ahead of us. Some Members of Congress are
with no tangible impact on America's pay
d we do
concerned about the potential impact that
scales. That being the case, someone ought
409
Apr. 8 / Administration of George Bush, 1991
to ask the opponents of Fast Track why
And so, I will be fighting my heart out to
they oppose prosperity in Mexico.
win passage of this. I was very privileged to
Someone should ask why they oppose let-
receive for the second time in Houston the
ting our neighbors enjoy the benefits of
able President of Mexico yesterday. He's
progress. These are our friends. These are
doing a first-class job. He's moved that
our neighbors. Ask them what's wrong with
country in ways that some of his critics
increased productivity throughout the
whole continent. We benefit when others in
would never dared dream possible. And I
think that it is in our interest now to build
this continent prosper. And ask them what's
on this improved and strengthened relation-
wrong with a more stable Mexico. A free-
ship to give them and give ourselves the
trade pact would encourage investment,
benefit of free and fair trade.
would create jobs, would lift wages, and
give talented Mexican citizens opportunities
So, as we join a world that is linked pri-
that they don't enjoy today. A stronger
marily by economic-not military-compe-
Mexico, in turn, means a stronger United
tition, we have nothing to fear except the
States; it means a stronger North American
fearmongers themselves. They seem to be
alliance.
the only ones who haven't learned lately
So, you see, we have much to gain from
that defeatism produces defeat, while confi-
extending Fast Track: a new era of open,
dence and self-reliance produce greatness.
free and fair trade, a future of unprecedent-
We've got to seize the opportunities that
ed economic growth and regional harmony.
this new world economy offers us. And with
As with most good things in life, competi-
your help, I am absolutely convinced that
we will do it.
tion involves risk. But we always have been
a nation of risktakers, of adventurers.
So, once again, thank you for coming.
Our forefathers transformed a rough wil-
And I pledge to each and every one of you
derness into an industrial superpower.
that this goal is so important to the United
We've created technologies and products
States that it will be priority with me, with
unlike any others produced in human histo-
Secretary Mosbacher, with every other
ry. We've placed the wisdom of the ages
member of the Bush administration in
within reach of anyone who can operate a
Washington, DC. We are going to win this
computer.
fight. But we need your help. Thank you all
The vote on Fast Track is really a vote on
very, very much.
what kind of America we want to build. A
"yes" vote expresses confidence in Ameri-
Note: The President spoke at 8:30 a.m. in
can know-how and ingenuity. I say we be-
the Evergreen Room at the Houstonian
lieve in ourselves.
Hotel. In his remarks, he referred to Miguel
I want to make clear that this isn't a par-
San Juan, vice president, world trade divi-
tisan political issue. I want to salute those
sion, Greater Houston Partnership, and
Democratic leaders in the United States
Lionel Sosa, who produced a video shown
Congress, including our own Senator Lloyd
prior to the President's remarks.
Bentsen, who's a key player in this debate,
and others in the House-Speaker Foley-
who have the vision to say this is good for
the United States and it's good for Mexico.
Remarks on Presenting a Point of Light
I'm going to approach this strictly in a non-
Award to the Voice of Hope Ministries
partisan, nonpolitical manner. It is too im-
in Dallas, Texas
portant to get it bogged down in partisan
April 8, 1991
politics. I take great pride in the fact that
the relationship between Mexico and the
Let me just say Barbara and I are delight-
United States has never been better. But it
ed to be here. In the first place, I want to
is my view that we owe Mexicans the op-
salute all at the Dallas Naval Air Station,
portunity that they will get from Fast
and say it's a pleasure to be back.
Track. And when they get that opportunity
But today what I wanted to do here in
it is going to benefit the United States of
this very brief period of time was to salute
America.
those that are gathered here not only to
410
Week Ending May 3, 1991
Remarks and a Question-and-Answer
helping these democracies-fledgling de-
Session With the National Association
mocracies, many of them-in South Amer-
of Farm Broadcasters
ica and thus building new markets for our
April 29, 1991
own goods. But in any event, that's the
second one. And then the third one, of
The President. Sit down, please, and wel-
course, is the North American free trade
th
come, welcome. Let me just make a couple
agreement that I mentioned earlier that, in
a of
of comments and then try, with the assist-
this instance, features Mexico.
ance of our able Secretary of Agriculture,
Now, there are some questions about
nth-
my friend and yours, too, Ed Madigan, to
whether these would be of benefit to the
respond to your questions.
American farmers. Let me just give you a
But in the first place, I'm delighted that
couple-click off a couple of little numbers
Ed is here. I was very high on Clayton
here. Free trade in North America would
Yeutter-moved over to a new and very
give our farmers a freely accessible market
ite
difficult and very different assignment. Ed
of 365 million people with a GNP of $6
stepped into the breach. He's doing a fan-
trillion. And that's a market that's larger
tastic job for our country. And I understand
than the European Community. And like-
ment
that he's rapidly making believers out of
wise, the negotiation of a successful GATT
rlos
those in ag business that didn't know him.
agreement would decrease the trade bar-
Those that did I think already were believ-
riers worldwide, offering potentially unlim-
ers, as I have been.
ited export opportunities.
But anyway, we are the most agricultural-
We're not there yet. We've had some dif-
ly productive nation the world has ever
ficulties getting our friends in Europe-and
s-555
ments-
known. And I want to be sure that we con-
they are friends-to understand this. But
tinue to be that. I'm still convinced that we
the Secretary and I and our USTR, Ambas-
-555
can compete with anybody, provided we
sador Carla Hills, and the Secretary of the
remove some of the barriers to trade. And
Treasury and the Secretary of Commerce-
that's one of the reasons that the Secretary
all of us are working on this important
and I are as committed to the successful
agreement. But we think that it would be a
conclusion of the GATT round; also why I
boon to American agriculture when we're
believe that a Mexico free trade agreement
successful.
would be in our own best interests.
The success, obviously, hinges on what
As a matter of fact, we've got a new one
you know and I know as Fast Track negoti-
with Canada. It's been in effect for 2 years,
ating authority. It is simply not right to-
and agricultural exports have gone up by 35
you can't negotiate an agreement if the
percent. So, those that want to criticize
people you're negotiating with think that it
ought to take a look at the reality, and I
will be amended in many, many ways. The
think then they'd understand why we are
Congress will, though-there's a misunder-
the Federal
committed-because we think it's good for
standing because some think that when we
1 CFR Part
American agriculture as well as good for-I
ask for Fast Track, that we're asking Con-
nt of Docu-
think it's good for jobs, too. Just across the
gress to yield their right to vote on it. And
C 20402. The
labor frontier there.
that simply isn't-I found that hard to be-
be furnished
There are three important trade agree-
lieve, but I think there's been some confu-
r ($96.00 for
.75 per year,
ments. You're all familiar with them. The
sion on that. We are going to-they obvi-
nment Print-
Uruguay round-the GATT talks; the trade
ously would vote up and down. And if they
single copy is
component of our Enterprise for the Ameri-
didn't like it, they'd vote it down. If they
material
cas Initiative, which is, I think, a bold new
liked it, they'd vote for it. But you can't
ocuments.
program that must succeed in terms of
have 25,000 amendments to an agreement
523
Apr. 29 / Administration of George Bush, 1991
and expect your trading partners to negoti-
I'd like to defer the first question to the
ate seriously.
elder statesman of our group from Des
So, the Congress-and I'm very respectful
Moines, Iowa, a gentleman who was our
of Congress' role in this. They have a consti-
second president in 1946, Herb Plambeck.
tutional role on international trade, and
The President. Is that right? Herb, you
some forget that. So, we're sensitive to that
didn't tell me all that. Thank you, Ron, and
role. We've had extensive consultations. I
I'm just delighted you are here, really.
don't believe I've seen an initiative that's
had more consultation with Congress than
Trade With Iraq
this one. And I think we're going to be all
Q. Mr. President, I'm sure I speak for
right on it, but we're going to continue to
everyone here in our group when I voice
work very hard to get Fast Track approval.
the pride and the gratitude we have toward
New applications for agricultural prod-
you for the way the Persian Gulf crisis was
ucts, like the alternative fuels, fuels blended
handled and the humanitarian efforts that
with ethanol, and biodegradable plastics,
have been made since then.
and some not so modern uses like food and
There are, however, a few questions re-
clothing, provide farmers with exciting op-
maining. One relates to Iraq, having been
portunities. I understand that there's some
one of our good customers for our farm
differences in the ag community. I was just
products. Is any thought being given al-
talking to the Secretary about this. But gen-
ready toward the restoration of this trade?
erally speaking, we're committed to alterna-
The President. The restoration of food
tive fuels. I believe that the Clean Air Act
support for Iraq is underway, the United
alone is going to create tremendous oppor-
Nations having taken some steps. We are
tunities for alternative fuel. So I haven't lost
not going to let people starve. But in terms
my enthusiasm for this at all.
of building reliable markets and in terms of
The Fast Track assures our trading part-
trying to have normalized trade, the United
ners that we will go through with our
States will not have normalized trade as
agreement. We will vote on what they and
long as Saddam Hussein is in power.
we negotiate, and I mentioned that point
Food is an exception now, because we're
earlier. New applications for agricultural
not going to let people starve. We are going
products is important. And we're talking
to go forward with helping people in Iraq
about some fuels blended with ethanol and
without regard to what sect they're from or
biodegradable plastics. And all of these
anything of that nature. But I don't want to
kinds of things I think have a brilliant
mislead any farmer in this country. We will
future for agriculture. It's been a little
not have normalized trade with Iraq as long
slower than I had hoped, frankly, but I
as Saddam Hussein is in office. And they're
think there's a big market and big future
now trying to appeal to get some relief on
out there.
the oil. There's not going to be any relief as
And so I would say to farmers, do not
far as the United States goes until they
despair because you haven't yet reached
move forward on a lot of fronts, incidental-
the full potential of these new markets for
ly. I mean, what's happened to these Kurds
your products.
is absolutely-it's so sad you're just moved.
I'm going to be asking agriculture over
Frankly-and Herb, I'm glad you men-
and over again for support on this Fast
tioned it-we have responded. We respond-
Track extension, and I think that the
ed from day one, and now we're respond-
bottom line is, they will enjoy more export
ing to enormous-hundreds of millions of
opportunity if we're successful here. And I
dollars relief. That's what we do. We're
think it will be a boon for the rural econo-
Americans. We do that to help people. But
my as well as-well, obviously it would if
we're not going to have normalized rela-
we continue to sell more abroad. So, these
tions with this man.
were just a couple of the points, and now
I'd be glad to respond to some questions.
Credit for the Soviet Union
Q. Mr. President, on behalf of NAFB, we
Q. Mr. President, have you made a deci-
appreciate this time on your schedule. As
sion on granting the Soviet Union more
president of the organization here in 1991,
credit?
524
Administration of George Bush, 1991 / Apr. 29
The President. No, and we're thinking
plenty of Republicans. And Ed's not ap-
out that. The legislation-I've talked to
proaching it in a partisan manner.
Ed about this, and the legislation is fairly
But in terms of the farm organizations,
specific in terms of creditworthiness. Shake
thank heavens most of them are seeing that
me off if I'm wrong here, Ed, but I think
it will benefit the agricultural economy in
that's correct. Regrettably, the Soviet Union
this country. I really believe it will. But
has not entered into the market reforms
we're just going to keep pursuing it because
that I think Gorbachev aspires to and that I
I don't want to say it's in the bag. It isn't
know that the President of the Republic,
yet. We're counting votes, but we've got a
Mr. Yeltsin, aspires to. So, they've got to
ways to go before I can say to the American
move forward to be creditworthy if we're
farmer, look, we're going to win this one,
going to do this.
and you're going to be the beneficiaries
Now, there may be-and we're thinking
thereof.
about this-there may be some way to
Q. The President, how successful-or
extend credits. And I'll tell you another
what would it mean not only to the U.S. as
problem is we want to be sure how it's
a whole but for the U.S. farmer for a suc-
distributed-that no area is precluded from
cessful GATT agreement? And how impor-
being the beneficiaries of this kind of
tant is Fast Track to that?
credit. So, it's up in the air right now. I
The President. It's very important to a
don't want to say that I won't go forward
successful conclusion to the GATT round.
with this. I think in some areas it would be
Without it, without Fast Track, I think it
very helpful to us, to our grain growers.
would be almost impossible to hammer out
I'm not immune to the fact that they've
an agreement that would pass muster with
been hurting, so I'd like to be helpful. But
the many countries that have to be in
I've got to abide by the law. And if we can
accord. And so it's do or die, in a sense, that
"nd ways to encourage forward movement
this Fast Track-some have wanted to try
these credits or find ways to make it
to split them off, split off Mexican-the
editworthy any other way, so much-
North American free trade from Fast Track
market reform is a good way to do it. There
and relating to Europe-to GATT, I mean.
are other ways that perhaps they could
And I don't want that. I don't want to see a
make the credit more secure.
policy that discriminates against a neighbor
Fast Track Authority Legislation
of ours. And so, we're going to go forward.
And I-again back to Bill's question-I
Q. Sir, I'd like to get back to Fast Track.
think we can do it, but we're not there yet.
Only one of the major farm organizations-
and they're a glaring example-everybody
Mexican Adherence to Pesticide
else is in favor of the Fast Track-what's
Regulations
the hangup? What's the problem? What do
Q. One of the problems it seems like that
you see?
Congress and some agricultural interests
The President. Problem with who? With
need assurances on is the pesticide regula-
that one guy that's out of step, or the other
tion issue. What kind of assurances can you
51? [Laughter] I'm for the 51 farm organi-
provide that we can get Mexico to conform
zations that are for it. Fifty-one are.
to our strict pesticide regulations here?
Q. Don't you feel it will pass?
The President. Well, there's a lot of dis-
The President. Well, I hope so, but we're
cussion going on with them. It has to do
not going to act like it's done yet. We are
with the other environmental concerns, too.
killing ourselves trying to get this done, and
I believe that Mexico-and the technical
we are going to continue to work with the
way we're doing this I'd have to defer—
Democrats in the Congress-Republicans
even maybe Ed could answer it, but I'd
Incidentally, we're approaching this in a
have to defer to Carla. I'm not sure. I have
nonpartisan manner. We've got some Re-
discussed at length the environmental con-
publicans that I still have to convince, and
cerns here with the President of Mexico.
enty of Democrats. And then we've got
And all I can tell you is that he has moved
enty of Democrats that are for us and
forward. He's already shut down or is in the
525
Apr. 29 / Administration of George Bush, 1991
process of shutting down the highest pollut-
ideas or conservation program-and we
ing refinery in Mexico. It's the PEMEX re-
want it. But I also don't want this country
finery. He is well aware of the environmen-
to be shoved into a no-growth mode. I
tal concerns in this country, and he shares
mean, there's a lot of young people that
them as far as Mexico.
need economic opportunity in this country,
I'll give you an example. When I first
a lot of farmers that can sell more if the
met-maybe not the first meeting but
market increases for their products. But you
early-on meeting with President Salinas,
put your finger on something I feel strongly
who's a good man-and he started telling
about, and that is that we must, from our
me about the children in the Mexican
national security standpoint, become less
schools. They paint the sky at night with no
dependent on foreign oil. And alternative
stars. Imagine that-a school child painting
fuels is one good way to do it.
the sky gray. He said, "My ambition is to
I happen to think another way to do it is
have the children paint the night with the
to expand our exploration domestically. And
stars and the moon so they can see it." And
you run into conflict with special interests
I am convinced that he is going to do what
groups on that, but I am convinced that
is reasonable and what he should do to pro-
that is in our national security interests, too.
tect his environment, just as we're trying
hard to do it on ours.
Federal Emergency Assistance for Kansas
So, in terms of this, I'm embarrassed to
Q. Mr. President, any decision on Federal
say I can't give you the technical language
assistance for the tornado victims?
as to what we might be doing right now on
The President. I'm glad you asked about
agricultural pesticide use, pesticide use in
that one because one of the reasons I kept
agriculture, but I am confident-and inci-
you all waiting a little bit is I just signed the
dentally, the Senators tell me that they are
disaster assistance for Kansas-and I expect,
confident that the environmental questions
as the other requests come in, they will be
can be readily answered.
processed that rapidly. I mentioned yester-
Ed, do you want to add anything?
day coming out of church that our hearts
Secretary Madigan. You covered it very
really go out to the victims. Bob Dole was
well.
out there the night before last in Kansas,
The President. I mean, it's more general
and he called me up, I think it was Friday
than you wanted, but I am satisfied we can
night-or Saturday night I guess he got
get it done.
back-and said he really had never seen
anything like this. And of course, it was
Energy Policy
widely covered on the television.
Q. You mentioned the commitment to al-
And I said, Bob, what more do we need
ternative fuels, and I think wheat and corn
to be doing? He said, well, the FEMA emer-
producers realize that commitment came
gency people are there now-and then, of
long before the Persian Gulf war. But
course, then in came the formal request,
haven't the events of the last few months
and I'm happy to say that we did sign that
reemphasized our need to get away from
right now, and we'll do what's necessary for
those foreign fuels?
other States.
The President. Getting away from this
much reliance on foreign oil has been there
China
for a long, long time. It's more clear today
Q. Mr. President, what about most-fa-
because of the Gulf. We must learn. And
vored-nation status for China?
one of the things that we are trying to do
The President. Well, Mike, it's a difficult
with our whole new national energy pro-
one. What I have tried to do with China is
gram is to become less dependent on for-
to make clear our concern about human
eign oil. Now, one way to do that is through
rights abuses, stemming out of-highlighted
alternative fuels.
particularly by Tiananmen Square, but rec-
We also, I want to say-and I hope I don't
ognize that cutting off all contacts or trying
sound defensive-do have some pretty good
to drive them to their knees economically is
ideas in terms of conservation. And we're
not the way to effect change. And I go back
accused of not having any conservation
to when we opened relation with China:
526
Administration of George Bush, 1991 / Apr. 29
And, yes, there's some abuses there that no
Soviet Union
American can be tolerant of. But there's a
lot of changes in China that have taken
Q. Your reaction to the instability shown
place that are beneficial.
last week, of Gorbachev resigning and then
And I would point to the fact that our
the Communist Committee not taking it.
policy of at least trying to keep some rea-
What would him stepping down mean to
soned relation with China paid off in spades
U.S. agriculture?
on the recent war, because we needed-I
The President. Well, I think it would
felt we needed-the international sanction
mean uncertainty inside the Soviet Union.
that those United Nations gave the effort.
And there's a lot of question as to some-
And if we'd have had enmity with China, it
thing-if Mr. Gorbachev stepped down,
is very. clear in my mind that they might-I
which way the Soviet Union would go. I
can't say would have, but they might well
like to feel that the changes manifested by
have vetoed the resolutions. And we operat-
the lightening up in Eastern Europe and by
ed with an international sanction, an inter-
much more openness, glasnost, inside is ir-
national approval that gave the whole oper-
reversible. I like to believe that. But that is
ation worldwide credibility.
an internal matter of the Soviet Union. I
So, I think it's important that we have
have elected to stay in close touch with Mr.
reasonable relations with China. I think it's
Gorbachev. He is the man there right now.
important we have trade relations with
We meet with opposition leaders from time
China. But on the other hand, China some-
to time at various levels, including mine
times doesn't see eye-to-eye with us on
with the Baltic leaders. We have differences
some of the fundamental human rights
with them in terms of, well, treatment of
questions that concern me as President and
the Republics, for example, right now.
concern all Americans.
But what happened last week I think in a
So, that's a long way of saying I don't
sense was quite reassuring because there
know exactly what we're going to do on the
were some widespread speculation that Mr.
MFN to China. We fought for it last year.
Gorbachev was in trouble, even with the
We have protected the students in this
party. And I think that showed that that
country, Chinese students-will continue to
was not the case.
do that. But I'm one who believes that if we
But, again, there's a lot of turmoil there.
can keep contact and keep showing them
And there's a lot of economic difficulty in
our way, showing them how good our prod-
the Soviet Union today. And we don't take
uct is, that that's a better way than break-
joy in that at all. We don't take joy in their
ing off relations.
problems. They've moved considerably
There's a billion-what, 1.1 billion people
since-on a lot of things. And, again, going
in China. And give them their due, they're
back to the war, the answer I gave you on
feeding 1.1 billion people. I wish our trade
China is very valid in terms of the Soviet
balance with China was better. It's gone
Union. They approved every resolution.
more in their favor. But again, we can't
They stayed with us, even when Gorba-
legislate that. But I think I understand
chev-you remember just before the
China. I note the importance of China. I
ground war started-was talking about,
respect the sovereignty of China. I've said
well, please hold off. But I didn't take that
over and over again, I wish that-I have not
as a disapproval of what we were trying to
certainly approved, indeed, have con-
do. Indeed, when we said, okay, it's Satur-
demned some of the human rights abuses.
day, Mr. Saddam Hussein, or you've got
So, we've got to work with this big coun-
problems-the Soviets, having tried their
try. And it is in our interest so to do.
approach, were supportive.
Whether that will lead to MFN renewal,
And so again, we want to keep good rela-
that question will be decided very soon.
tions, but they have enormous-just enor-
And I, myself, must decide what role the
mous-problems, and we take no joy in that
administration will take, because we had a
at all. I'd like to find ways to be helpful. But
battle on it before, as you know.
when it comes to these credits, we cannot-
Two more-there are two persistent
we are bound by our laws. And I think that
hands up, and then we'll go. Yes?
protects the American taxpayers-that
527
Apr. 29 / Administration of George Bush, 1991
there has to be a certain creditworthiness.
ers. But it's being done, and the discussion
So, it's a tough one right now for them, but
of it will continue-discussion of it in th
let's hope that this democratic process will
Uruguay round and elsewhere is a process
keep going and keep evolving until we
of getting the tariffs removed. So, you start
have just pluperfectly good relations with
by getting rid of the quotas and putting on
them. I mean, we've got good relations, but
a tariff with a schedule for the tariff to de-
they've got such enormous problems that
cline.
their full potential is unrealized.
The President. That's what I wanted to
You talk about energy-somebody asked
say, but I was just kind of hung up on it.
me the energy question-the potential is
Thank you all very much.
enormous. But they've got to move forward
Q. I just wanted to say thank you, and we
with more than rhetoric. They've got to go
appreciate your accèss to talk about agricul-
with these market reforms.
ture for a few moments.
Free and Fair Trade
The President. Thank you all very much.
Q. Mr. President, there's been a lot of
Note: The President spoke at 2:35 p.m. in
talk about tariffication. One of those places
the Roosevelt Room at the White House. In
where it has happened-Japan has removed
his remarks, he referred to Clayton Yeutter,
quotas and put on tariffs on beef. Could you
chairman of the Republican National Com-
relate to that, please?
mittee; Secretary of the Treasury Nicholas
The President. What was the word?
F. Brady; Secretary of Commerce Robert A.
Q. Tariffication-putting tariffs on instead
Mosbacher; Ronald Hays, president of the
of quotas in trade negotiations. That's been
National Association of Farm Broadcasters;
one of the goals.
Senator Robert Dole; Bill Mason, farm
The President. I don't think just substitut-
broadcaster at WGEL in Greenville, IL; Mi-
ing one barrier for another, if that's what
chael LePorte, farm broadcaster at KRVN
the question is, is a good way to do it.
in Lexington, NE; and Michael J. Boskin
We're trying to get open markets. It is my
fundamental belief that the American
Chairman of the Council of Economic Ad
visers.
farmer can compete with anybody provided
we're talking total freedom of trade. We're
not there yet. We're not there yet in terms
of trade with a lot of countries-put it that
way. But if the substitution is being substi-
Statement by Press Secretary Fitzwater
tuted to throw up a barrier under a differ-
on the Task Force on United States
ent name, I don't think we should be very
Government International Broadcasting
enthusiastic about that approach.
April 29, 1991
Maybe I'm missing your question, but-
Q. The question is, as opposed to just a
Hundreds of millions of people worldwide
strict quota, put on a tariff-and that's been
rely on U.S. Government broadcasting for
one of the things that have been talked
objective world news, local news, explana-
about in trade negotiations, that has hap-
tions of U.S. policy, and information about
pened, and apparently beef exports to
democratic values and institutions, includ-
Japan have increased.
ing free-market economics. In light of dra-
The President. Can I refer to my econom-
matic political developments worldwide, in-
ic expert to answer that which I do not
cluding the democratic revolution in East-
know? [Laughter] Mike? This is Dr. Mike
ern Europe, the end of the cold war, and
Boskin here.
events in the Persian Gulf and Middle East,
Chairman Boskin. We have been gener-
it is appropriate and timely to examine U.S.
ally in favor of substituting tariffs for quotas
Government international broadcasting op-
in the context of reducing the tariffs in a
erations.
variety of ways. So, I think the President's
The President is pleased to announce the
quite right-you don't want to just substi-
establishment of an independent, bipartisan
tute one form of barrier for another. That
Task Force on U.S. Government Interna
won't help us. That won't help our export-
tional Broadcasting to study the best futur
528
Leo Melamed
1987
The Tenth Planet
*7000
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DEC- 5-91 THU 14:09 TEACH'EM/BONUS BOOKS
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Andrew A. Yemma
Vice President
Communications
Chicago Mercantile Exchange
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1
DISCOVERY
W
here are you off to now. Dormah?"
It was Rafflo. Dormah detested
the little creep. Not for his neuter sex, nor his nasal whine
(which was not unusual for neuters), but for his demeanor
and sarcasm. Rafflo knew he was superior and made certain
everyone was aware of it.
"To pee-want to watch?"
Rafflo gave her the finger and twirled around smartly.
making certain his rear wiggled as only neuters' can-as defi-
ant a gesture as he was capable of.
Dormah smiled inwardly, pleased she didn't merely ig-
nore the twerp as was her normal inclination.
Rafflo had been on her case since the moment they
left Zamos. Somehow, he had detected she had a secret. For
the life of her, Dormah couldn't figure out how he had
reached this conclusion; she feared he could read her mind.
She desperately tried to avoid his presence.
She waited, making certain he didn't turn around be-
fore she made for the Computer Center. The last thing she
wanted was for Rafflo to follow her there. Not that he could
ever see what her work was about-everyone's station was pri-
3
DISCOVERY
DISCOVERY
vate. She simply didn't want him to know about her move-
Dormah nodded happily. "That's where I'm going."
ments, ospecially hot nood to uso the ship's computer so soon
she admitted as he fell into step beside her.
after their departure.
Com was a dear old friend. He was also It good chum
Her bizarro discovory had left her with an unbearable
of Commander Kyro and 8 highly-regarded astrophysicist.
sense of excitement. There were moments during the last few
The throo of them had spent many a night together pondering
days when she thought she might explode from norvousness.
the alien puzzlo, with no success, of course. but it WHS great
What dramatically intensified these emotions was the strong
fun. Kyro had told her that if he had to bet on it, Coni was the
possibility that after nearly four years of Trustration and dis-
most likely person to find the solution, except for Putral.
appointment she actually stood on the throshold of solving
"For A second I thought you were Rafflo" she con-
the puzzle which had eluded overyone, including Putral. Even
fided. "That croep has been following me all around the ship
now she had difficulty believing that the answer was really
because he thinks 1 made a discovery. He'd be the last person
within her grasp. and yet she was convinced of it, This time
in the world I'd confide in."
everything fit.
Cont nodded sympethetically. "I know just how you
The first thing she did after the One's liftoff from Dish-
feol. I'd rether talk to a dead ford."
to Ret was to place an interplanetary transmission to Kyro. It
"You're right." Dormah giggled. "dead fords are better
WHIS an instinctive action, one she rogretted as soon as she
company."
heard his voice. How could she say anything meaningful to
"And have you made a discovery?"
him when the call WIIS probably monitored by millions of
Dormah giggled again. "I'll tell you right ufter I toll
eavosdroppers the world over? (Not to mention the little croop
Rafflix"
who had probably also lound H way to intercept the ship's pri-
Goni chuckled and hugged her. "That's what I like
vate transmissions.)
about you. Dormah girl, you're so diplomatic."
Consequently their universation was unusually
"Thanks, but I take no credit. I owe all my diplomatic
guarded and her attempt to convey e signal to Kyro awkward.
skills to the commander."
filly probably 80 confused the commander he didn't know
Moments lator, when she sat alone in the privacy of
what
to
make
of
hot
WORDS.
"
Licen
be
her liubiele with her hands on the keyboard. she noticed for
could be of untile help under the eircumstances. The full expla-
the first time that Uney were trumeing. Al., P......... It. 100mlf in
nation would have to want. Her computer analysis, howover,
take deop breaths in order to value down. No such now. she AS-
could not.
sured herself. No one in Galona knew what she know and no
"Dormah. Dormah."
one could pry the information from her. All she now had to
For a moment she thought it was Rafflo again, but to
do was organize her thoughts and instruct the computer. She
her Immenso relief it WIIH not. It was good old Coni.
would know the truth soon enough. The rest would be history,
"If you're hoaded for the C.C., I'm with you. I've dovel-
She tried to think back to the beginning. to the day Pu-
spoul e thang m) the IPIIII farm and I'm burning for the
tral delivered his "primcomm" address to billions of Galo-
computer to tell me why I'm wrong again."
siene. The day "nould former change the of Calotian
4
5
DEC- 5-91 THU 14:11 TEACH'EM/BONUS BOOKS
P.05
DISCOVERY
history" as he put it. I low right he was but how wrong his reason.
Shr recalled how she and Kyro spt transfixed before
FOON
the videom and Batoned Irs 111st Conuster's hypnotic voice. His
(neo. the usual SON of tranquility. divulged nothing.
"I como before you today." Putral stated triumphantly.
"with news of IIII unprevadented nature. Nows, that will for-
ever change the course and history of our civilization. We
have at long Inst obtained irrefutable ovidence of the existence
in the cosmos of an intelligent alien civilization. We are no
longer alone"
Had four years really elapsed? she wondered. The
broadcast seemed like only last week. yet so much had hap-
pened since then more to her than to anyone elso.
She smiled. Would anyone believe her weird experience?
M
any saw the phenomenon. The official
Probably not. She still had trouble believing it horself sometimes.
tally, conducted much later. established
How desporately she wanted to share her thoughts with Kyra
that more than thirty million witnessed the event. Com-
Soon enough.
mander Kyro, P-406. was one of them.
She koyod in her personal access code and the termi-
It happened by accident. Were it not for Captain So-
nal in front of her instantly sprang to life. It was ready 10 fol-
tim's abrupt Intrusion, Kyro would have missed it. In fact, at
low her every command.
the time. he was furious at the captain for interrupting the
tranquility and beauty of the moment.
Although the trip was commonplace for the com-
mander. It gave him great pleasure. His tiny persh was a mar-
val of engineering and Kyro, who know the function of its
every part, could feel the perfection of its synchronized move-
ments. At moments such as this, his own body seemed to as-
sume the power of the vessel and he and machine functioned
as one. It was a feeling reserved for those who cherished and
understood the magnificence of space flight and the vehicles
that made it possible.
He was sitting in absolute silence while the plenet he
left shrank behind him and took on the spherical proportions
of a globe. His vessel. enveloped by the velvet of space, had be-
come but an insignificant speck in the vastness of the dark
8
7
DEC- 5-91 THU 14:12 TEACH'EM/BONUS BOOKS
P.06
FOON
FOON
hoavens about him. As often as he had seen this sight. it never
"hart me get this right-you're telling 11111 = visual of the
coased to awe him.
One failed to come up on your vidcom? Is that what you want
Galos, when viewod from this distance. always gave
me to believe?"
him something new to admire. He especially liked the spec-
"Yes, sir."
tacular color offect caused by the sun; this, of course. do-
"And you've made a CPS-stat review?"
pended on its angle. Sometimes the planet looked entirely
"Of course, sir. It found nothing."
orange, other times " shade of blue or purple. Then there were
The commander's impulse to get engry WH8 suddenly
moments, as in that instance, when the planet reflected five or
overtaken by a desire to laugh. He could not remember the
six colors in kalvidoscopo fashion, one absorbing another.
last time B genuine commscope failure occurred: the idea was
Suddenly Kyro's concentration was rudely inter-
preposterous.
rupted by 8 signal from OS-3. the Outstation toward which he
Automatically, he switched on the videom on his
WAN traveling. The commander automatically resented the in-
persh and requested a visual of the ICS-1. The starship In-
trusion since the Foon had no reason to communicate until
stantly appeared in all her majosty. Although she lacked the
he requested docking permission. When he acknowledged the
dramatics of Fletin-built ships, she was distinctly recogniz-
signal, the excited voice of Captain Salin shattered the still-
able by her sheer size; there was nothing else that large in
ness of his cabin.
space.
"Excuse the intrusion, Commander Kyro, but I believe
"The One looks fine from here. Salin," Kyro said with
We may be facing an umergency 303."
more than a touch of sarcasm. He stopped himself from ask-
"A what?"
ing whether the good Captain was under the influence of
"A 303, sir 1 think it's either a malfunction of the
some controlled substance. "My vidcom seems to be func-
commscope. or worse"
tioning properly."
"Salin, what in the name of Eon are you talking
"Sir. I can fully understand that."
about?"
"Understand what, Salin?"
"I'm sorry. sin I know it sounds silly but it's the only
"Understand why your vidcom might still be showing
thing I can think off"
the IGS. Doesn't the persh commscope operate on post-image,
"Alright, please calm yourself and explain."
Commander Kyro?"
"Well. sir, the thing is that at 6:02 COS, our sutomatic
Kyro was taken aback; Salin WAS right. Because the
check on the 1084 failnd."
One was traveling in excess of the speed of light. simple
"What do you mean. failed?"
commscope equipment such as his could not produce an "on-
"The videom remained blank, sir. We got nothing but
line" Image. The persh commscope showed И "post-image"
stars. It's like the spacoship is gone."
picture of the starship as she appeared some time before. The
"Have you tokon leave of your senses, Salin?"
fact she still appeared on his screen proved nothing. On the
"I know it's crazy. sir I've never encountered any-
other hand, on OS-3 the equipment was sufficiently sophisti-
thing like it. otherwise I wouldn't have disturbed you."
cated to receive and exhibit visual signals at twice the speed
9
B
DEC- 5-91 - THU 14:12 TEACH'EM/BONUS BOOKS
P.07
FOON
POON
of the object heing observed. Their visual images wore live.
obsolote: their use now Was as ports of call for interplanetary
"You are correct, Salin. How long ago was your at.
space traffic bound for the mother planot. Galos.' Conse-
tempt? Oh yes, you said 6:02 COS"
quontly, the Outstations had over time become # center for
"Yes, sit."
smuggling and illicit trafficking. which in turn became a lu-
"Then this suggests that either you have a commscope
crative sideline to OS marine duty. Calotian officialdom
malfunction on From or the IGS-1 has vanished? Is that
found no way to stop this underground activity. Kyro knew
right?"
this first-hand. The Foons were under his command.
"YOR, sir"
"Sit. I have Lieutonant Jeng with a CPS report."
"And, If the One is grine. it will also vanish from my
"Your report. Jeng. please."
scroon
within
kyro made the calculations, "within 17
"I'm afraid, Commander Kyra I must confirm our
GOS minutes."
provious findings. The Commscope is in operational mode.
"That's Correct, sir"
no malfunctions apparent and yet the IGS-1 will not material-
"Well, Salin, Will both know that's not possible. so
ize."
while WD wait to 900 what happens on my videom. why don't
Kyro said nothing while he pondered whether it might
you get CPS to do " second review? And when it's finished let
not be H conspiracy by everyone on the Foom. Such practical
me talk to leng."
jokes had been played before.
"Yes, Hir"
"Shall we request permission for audio transmission.
Kyro found the whole episode absurd. He could as-
Commander?"
sume noither Il commscope failure nor the preposterous no-
Because the One currently attracted millions of space
tion that the IGS-1 had disappeared. Indeed the screen on his
watchers. nobody was allowed to contact the starship directly
vidcom presented clear tustimony to the opposite. It was
without specific permission from IGS Mission Command.
pouring out pertinent statistics about the starship's maiden
The ship's passengers would otherwise be constantly bom-
expedition: the distance it had traveled since the inception of
barded with communications.
its journey, its spood. the time clapsed since It left Zamos, its
"Not yet. Salin. 1 want to see what happens on my vid-
ETA on Galos and II host of other technical date.
com."
He smiled " the wild Idea that anything could be
Everyone remained silent until 17.07 when, to Kyro's
amiss with the majostic One. He could only assume that Cap-
tain Salin was in an oping stupor. The drug. a current fad in
the Marino Corps. was known to cause a dysfunction of the
'After the Second Calactic War nearly destroyed Galos, the Outstations were
placed around the planet ON " protective monsure. Thrir sole purpose Was to
optic nerves. Its acquisition, while illegal, presented no prob-
house Glosan worships where they could quickly be deployed In the event of
tem on the Foons.
another stock. Hownver, the necossity for rapid ship deployment was NM-
The six Outstations, or Foons as they were commonly
dered absolete by the Invention of the V-Tor antimatter defense system. This
known (a contraction of Falso Moons), resulted from the Sec-
system and the contingent of marines to stoff = attlized but a small sugment
of each Mon. allowing the remainder to be converted to porte of call for In-
ond Galactic War. Their original purpose had long become
coming space traffic.
10
11
DEC- 5-91 THU 14:13 TEACH'EM/BONUS BOOKS
P.08
FOON
amazement, the IGS-1 venished from his screen, just as the
calculations had indicated. Nothing remained of the magnifi-
cent starship. so visible moments before, except the last few
3
CAUSE UNKNOWN
statistics of her voyage.
The ompty videom now showed only the backdrop of
stars and the planet Zamos in the far distance. It WHE HN
though the One wore never there.
M
icro-seconds after the starship vanished
Putral possessed all the available data
about the occurrence. Seconds later his analysis was com-
plete.
The resulting conclusion was a jolt to his central ner
vous system. "Cause unknown" was " response Putral has
never before encountered. of equal shock was the unequivo
cal fact that all traces of matter and energy had disappeare
together with the intergalactic starship. a phenomenon no'
known possible.
So unbelievable did the C-mastor find these conclu-
sions that instinctively ordered a re-analysis, something h.
had seldom before requested. It failed to change the result
Putral then did something even more unusual. He ordered
comprehensive examination of his vast and complicated com
munications network. including every data source station
throughout the world: e formidable task oven for someone o
his talents-something never before necessary.
Unfortunately the exercise did nothing to alloviate his
state of dismay. No malfunction materialized. It was conclu
sive. The IGS-1 had disappeared. an event without prece
12
13
DEC-
5-91
THU
14:25
TEACH'EM/BONUS
LEAR OCEAN
fronted the Arlian Emril in a lonely sector off Dvook. Flotin's
number four moon. The Emrit was escorting soveral chemical
35
LEAF OCEAN
carriors back to its colony when, according to the Zifron, it vi-
olated Galosan territorial space. In its zeal to protect the mer-
chant ships, the Arlian warship ignored the Zifron's repeated
warnings.
It WIN not much of a contest and might have served as
the necessary face-saving Galosan reprisal-had the Galosan
battleship not accidentally crippled one of the unarmed tank.
ers and killed many of its crow. Naturally the incident begat
an Arlian retaliation.
This occurred the very next day when two Arlian
heavy cruisers pursued and cornered the Galosan Fluur, B
T
We Zamotian days passed while the Dannsk
first generation warship, claiming it had opened fire without
continued to circle the planet, the two Za-
provocation. The ensuing battle was fierce and lasted several
motion warships never for behind. Contact with Agot did not
hours. All aboard the Galosan vessel perished.
OCCUR
These incidents and those that inavitably followed
Each day Putrul made several inquiries about the an-
wore clear signals that the war disease was about to reach
droid: each time Kyro pressod him for an interpretation of the
contagious proportions. Not only were the fleets of every gov-
silence. Putral refused to speculate. "It is as 1 expected" was
ernment encircling their respective planets and closely moni-
all hn would sny. Nan Was more imaginativo. Sho offered a va-
toring each other's movements. internal preparations were
riety of explanations. the most telling of which was that Agot
frantically underway at a pace which bespoke inevitability
already knew the answor. "After all." she sold. giving Kyro
Every action of one government was viewed with sus-
one of her plaintive smiles, "he scems to know everything
picion by all others. Emergency meetings were conducted
else."
without respite. Official proclamations, often contradictory,
in the meantime the world continued to move toward
became commonplace, confidence in any of them virtually
galactic confrontation with inuxorable certainty. Putral's fail-
nonexistent.
ure to persunde the Elders 10 overlook the Delt incident sent
The Cerdian Congreso made It clear that, in the event
an interplanatory chill through Galotin. It set the stage for a
of 0 declared war. in would come to the aid of the mather
undino If I
1.
J
Brank
VIV
meen
and Anl whom inturnity and A Inval from where the final mount
tisk, 36, a healthy regotated nonaggression treaty with its
could not hm Amount It name from this nronn that the intorpiene
long standing ally A.L.
tary conflagration would bo exported to the rost of Calotia.
The most troublesome effect of these events WHS to di-
The Galoson battloship Zifron. an LF monster. con-
minish Canng's authority. Putral's pleas for restraint Were in-
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LEAF OCEAN
LEAF OCEAN
croasingly ignored 118 normal life within the planetary
and unroal dimension. A sunse of impending doom seemed
structures came to it heat standstill. The populations of each
to prevail. Daily functions were carried out in a trance-like
propared for the worst. yet no one know exactly what to ex-
fashion. Crew members spoke in whispers or not at all. No
podt. Bizarro and irrational revelations became accepted gos-
one dured question Kyro's roasons for remaining new Zamos
pul. Rumors of every sort, espectally of an imminent alien
and he volunteered none.
invasion. abounded
The Dannsk's commander once again immersed him.
In (12) early incident, the commander of a Flatin vessel.
self in II flow of interplanetary transmissions from friends
Thrmyn C-89. reported sighting R UPO. Two Fletin cruisers
and officials aliko: many called to discuss the state of the
were sent spooding 111 the direction of the discovery.
world in general. some to commiserate with Kyro's plight in
At about the same time, the Cordian Astro Observa-
particular
lory reported il landing by "alien-liko" space vehicles on Brot.
These involvements occupied Kyro's time. but did III-
Date of the uninhabited planets in the outermost reachos of the
the to dislodge his feeling that the last scene of Il tragedy was
system. A Cordian worship WIIH dispatched to investigate.
about to be enacted. Try us he might. his efforts to reach Agot
The parliament of Zamos issued another proclama-
went unrewarded. The responsibility for deteriorating world
Non. reversing its previous views and implicating the SEU as
conditions became a heavier burden with each passing hour
instigator of the disasters. It was part of an Interplanetary
and the anticipated value of Agot's cooperation diminished
plot, they said, "to advance the cause of anarchy:"
accordingly.
However, the renowned Zamotion physicist Afsh
The idea that ho could somehow convinco the android
Wollbra demurred. stating the cause could not be galanoid in-
to reverse his course of action was fast becoming n remote
spired. Instead he announced that he was on the verge of dis-
possibility. As he had said to Nan, there was an undentable
covering the source of the unknown power and that "a
logic to Agot's decision to save the terranold world. It was a
deterrent force" WHIN within his reach.
"them or us" proposition as she herself had so often stated.
On Galos the highly respected philosopher Alvyt Z-
On the fourth day, the inevitable happened. Putral ap-
2000 procluimed that the end of the world was at hand. Later.
peared to advise the commander: "Upheaval is at hand." Ga-
"Tho Life." an interplanatory theosophical organization
los and Cord had officially declared war on Arl and Fletin.
whose membership included some of Galotia's most re-
Only Zamos remained uncommitted.
spected philosophers and scientists. substantiated Alvyt's
The news was more a relief than a shock. "How much
prediction by requesting that all important records be placed
time do we have?" Kyro calmly inquired.
in time capsulos.
"In Zamotian terms, no more then one day."
On Arl, almost IN comic reliof, the underworld's
"Then I am going to the android." the commander
Triad. realizing that galactic war would be disastrous for its
said without hesitation. "There is enough time for me to get
investments, announced that as a gesture of good will it
to the Leaf Ocean and back before you need to act."
would suspond all torrorist activities.
Putral opposed the idea. "There may be sufficient
Meanwhile. aboard the Dannsk. life took on a tense
time. but the trip is an unnecessary danger for you.
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LEAF OCEAN
LEAF OCEAN
"Pursuant to Bril Fistt's warning," he cautioned, "if
avoided giving the impression he was curious. allowing the
you are captured by the ZCR no one will be able to save you.
commander to keep his private counsel.
Your commander status will be meaningloss. Resides, you
Now Kyro knew the moment to enlighten Landu had
have no Idea how Agot will troat an uninvited visit. If he
come. In the event he did not return in time, it was imperative
knows the outcome of the program analysis, as Nan suggests,
the Dannsk be safely taken back to Galosan territorial space.
a visit by you without his approval could enrage him unneces.
In such case. his second officer was ontitled to a personal
sarily"
briefing. The only precaution the commander took was to
"I must chance it," said Kyro emphatically. "Our op.
hold the conversation within the relative safety of the Cul's in-
tions have run out and I fool compolled to make this one last
torior.
effort. My ducision is unalterable."
"I thought you'd like to know why wo keep circling the
Nan applied all her intellectual and emotional skills in
fruit farm." Kyro said by way of greeting. "It's H long tale and 1
an attempt to be included in the mission. She would accept,
have but n few minutes. so listen close."
she said. nothing less than an affirmative response. Her ef-
Throughout the length of the explanation. except for
forts. however. were futile. The commander would not budge.
an occasional involuntary whistle, Landu did not breathe a
Never again. he told her, would he be party to a decision
sound. When Kyro finished. the socond officer asked several
which brought her back to Zamos.
questions to fill in some voids. then stood up and grinned at
"Whatever also." he said with finality, "I am still A bat.
him.
tleship communder. You are A Zamotian outcast, a discredited
"You know what bothers me most about all of this,
officer of the ZCR an accused spy for the SEU, and officially
commander? Coddamn Sukrs was closer to the truth than I
wanted for the murder of Lar Ban. Your life isn't worth a sas-
was! The alienics won!"
for leaf on that phinot"
Both officers broke into laughter.
So it remained with but one prerequisite. The C-
At the precise moment set, the Cul-fully repaired but
master provailed that he should be in constant contact with
with ZCP insignia in place of its own-siipped away from Its
Kyro throughout the trip and oncounter with the android.
mother ship under an image-block cover.
When these issues were finally settled, the com-
Kyro's strategy was to keep the Gul near the upper
mander prepared an explanatory vidcom broadcast for the
limit of the stratosphere until he was in the vicinity of the
Dannsk crew, to be aired in the event he did not return. Then
Leaf Ocean. At that juncture. he programmed the lander to
he hastily summoned Landu.
follow the route originally set by Agot. Although this proce-
Until that moment, the second officer of the Dannsk
dure would lengthon the Journey. he thought it necessary to
had behaved like the good soldier ho was. No doubt # lesser
ensure finding the exo-chamber.
officer would have succumbed to the temptation of trying to
Twice during the voyage, at Putral's suggestion, Kyro
pry from his commander some Information about the mys-
attempted to contact Agot. The android refused to respond.
tery which enveloped their vassel. Not Landul He carefully
To occupy Kyro's time, Putral gave him a complete history of
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P.05
LEAF OCEAN
LEAF OCEAN
the Leaf Ocean and the biological makeup of the troos. While
again and again. Nothing happened. Agot refused to acknowl-
Kyro appreciated the diversion, it did little to diminish his ap-
odgo, Was he angry at the uninvited intrusion? ()r obstinately
prehension.
refusing to talk?
The first time Kyro snw the sastor forost. it was day-
Kyro activated his space suit to go below. Putral said
light. The Intensity of the color had been unboarable. Now, in
nothing. II took Kyro only a few seconds. He stepped into the
the Zamotian night. tin could seo nothing but a continuous
evacuation chamber and used his lift-beum to lower himself to
black shroud. The only uninistakable similarity between this
the ocoan floor. The exo-vapor quickly enveloped him. Hu
visit and the original one was the constant moaning of the
could KOB nothing.
leaves as they left their branches to find their final resting
Slowly ho descended to the bottom. He was now only
place below. Yet even this sounded different. Sunlight. it
H short distance from where he knew the android to be. His
soemed, caused the frenk leavos to depart at n much faster
spaceboam illuminated the area before him, casting AN erie
rate. At night the rhythm was slowor, the effect more ominous.
green light. He stepped toward where the monitor had Indi-
To Kyrn. the sound resembled the slow drum beat he
ented.
had onco hoard in an image theator production of an ancient
At first he thought he had lost his direction. for there
tribal ritual. The bent announced the arrival of an intruder.
was nothing except the soft slimy occan substance beneath
The present sound sound to transmit a similar message.
his feet, now green from the light. Suddenly there be was.
Finally, the Col roached the surface of the Loaf Ocean.
Kyro froze in his tracks. He was positive it was Agot lying on
Unhesitatingly, BN before, il entered and began its slow de-
the ocean floor directly in front of him. Ho again tried to talk
scent. This time. however, the yollow leaves were indistin-
to him. No response.
guishable from the colorloss blanket surrounding them, nor
He bent over to touch the android with his hands. He
could Kyro discorn the changing composition of the matter
could feel the shape of his body. Agot was lying outstretched
beneath the surface. Everything was uniformly black.
on the ocean bottom. Kyro ran his hands over the creature's
When the vessel stopped, presumably in the same to-
torso. There was no responsive movement. He touched Agot's
cation as the first time, tot # sound could be heard, not even
faco. It remained still. Kyro began to believe what his instincts
by the monitor. The surrounding darkness was much heavier
had been telling him for some time-Agot was doad.
than he had over encountered in space, the stillness unique to
Kyro lifted the android's body with his hands. It was
his experience
much heavier than he had expected. Slowly he carried it back
Suddenly the monitor recorded an object beneath the
to the lander. The location sensors guided his direction. He
vessel. First it registered HS "unknown," thon, by way of cor-
again used the lift-beam to ascend. Slowly Kyro moved up-
rection, the monitor advised il was the same object encoun-
ward with the android's body in his arms.
tered there before. Agot was on the ocean floor directly under
Aboard the Gul, he carefully put Agot down and
the vessel.
quickly replaced his space suit into his belt. Ho looked at the
Kyro broke into " sweat. Putral became silent. Kyro
body for the first time in light. Agot's eyes were closed. There
tried to make contact with the android. No rosponse. He tried
was no sign of life. Kyro asked the science monitor to examine
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LEAF OCEAN
LEAF OCEAN
the object. II registered "abanned of function." II was con-
alterable. There was only one thing I could do. an ovontuality I
firmed: the android will doad.
had propared for. Since I couldn't change his programs or
Kyro suddenly remembored Putral. Ho recounted to
neutralize his power, I gave Agot the gift of a new one. I pro-
him what had transpired. Putral continued his silence. Kyro
grammed him with the ability for scientific analysis, an abil-
told him that hu was ordering the lander to return to the
ity. he so often stated. that the Satos had failed to provide him
Dannsk. Putral finally responded. saying it Was a good idea.
with."
The Cul uncountored no Zamotian craft and was ún-
"You gave Agot the means to discover Terra's location!
detected as il asconded nt maximum spood to the stratosphore
He died by completing his purpose on Zamos"
above the Leaf Orean Unovantfully, it rendezvoused with its
"Yes" said Putrai quietly. "I WBS fairly certain the date
mother ship and found the safety of its bosom. During the
1 placed in his new program would lead him to the solution."
swift journey. nother Kyro nor Putral spoke to each other.
Kyro fell silent. awed by Putral's brilliance. It was the
Kyro spoke only with Lando to propare for the docking.
only means to save Galotia. Putral had come through again.
Onco aboard. Kyro set the Dannsk on a return course
"I am speechless." he said finally. "I nevor would have
to Galos He explained the situation to Nan, isolated the dock-
thought of it."
ing chamber and quickly went to his own quarters. There, be
"I am programmed to think of such things" the C-
contacted Putral again.
muster modestly intoned.
"You know." be accused.
but why did you delay advising Cosog and
Putral nodded slowly. "I wasn't positive. but I thought
chance a Galactic war?"
it probable."
"I explained it to you. It was 8 difficult decision. I
"How?" kyro demanded. restraining his emotions.
couldn't be certain my strategy had yet been affected. Think
"How did you know? How did it happen? You told me Agot
of the risks involved if I had revealed overything before he was
was indestructible"
dead. Think of Agot learning what I had done. How would he
"He was." carre Putrol's calm reply. "There was no
react? I needed as much time as possible for my measures to
power in our world that could injure him."
be successful, even at the risk of war."
"Then how did he die, Putral?"
Putral was right. Agot's ability to know everything was
"The only way possible-at the hands of the Satos"
a serious concern. Still, Kyro felt cheated.
"I don't understand."
"You could have told me," he protested.
Putral smiled. "You see, Kyro, It happened during the
The C-master disagreed. "Not really," he responded.
android's de-analysis. As soon #8 I realized his programs
"The same constraint applied to a conversation with you.
were Irreversibly locked
Agot was tuned to everything involving his existence. The
"Then you understood the language." Kyro inter-
danger was too great. so I opted for silence. Besides, I pre-
rupted. "You didn't need the additional time to decipher it?"
forred you learn the truth by yourself:"
"That is true. I knew the truth-the programs wore un-
"You know I would go to the Leaf Ocean?"
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P.07
11 oct AN
"I thought 11 likely"
Again Kyro become quiet. the full scope of Putral's
thought process bocoming clear
GLOSSARY
"You know. Putral." he said in a whisper, "I feel like 1
participated 111 11 murder."
The C master shook his hend. "Actually, if anyone did.
it WIS Dormah. 1 placed her statistical analysis within the an-
droid's new scientific program. It was her tenth planet hy-
pothosis that 111 the end enabled Agot to find Terro."
Kyro smiled. "The ultimate form of pootic justice." he
whisporod. Suddenly another startling thought struck him.
"Hul Putral, by saving our world. we have doomed
Torta. The Sales will now the able to carry out their intent."
The C master hesitated 8 moment. He shrugged. "Om
A
dilomma at # time. Kyro, please"
Afsh Wollbre. Renowned Zamotian physiciat.
Agen. Three-million-your-old android created by the Sates; the care-
taker of planet Zamos: in Satian mythology. the god who is carotaker
of all planets.
Aldor. 1)-1504. Dannsk marine captain.
Allenics. Those who believed the disappearance of the IGS-1 was the
result of an alien causation.
Alvyt. Z-2000. Famous Galesan philosopher
Antident. Sutian weapon utilized by Agot to annibilate matter and
change energy into Its opposite, anti-energy
Arl. One of the five inhabited planets of Galotin
Arlian. Portaining to planet Arl: a citizen of the colony of Arl.
Aryl. See Centur.
Baftin. Sci-Sti Investigatory worship on Arl commandeored by Com-
mander Eron.
304
305