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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: 13837 Folder ID Number: 13837-009 Folder Title: Victory 1992 10/8/92 [OA 8486] Stack: Row: Section: Shelf: Position: G 26 23 1 6 OCT-08-1992 10:54 FROM TO 82024566218 P.02 October 8, 1992 MEMORANDUM FOR THE PRESIDENT FROM: STEVE PROVOST SUBJECT: NATIONAL VICTORY '92 REMARKS Tonight, at approximately 9:30 p.m., you will speak to 500 supporters at the Houston Marriott, and another 2,500 at six other sites around the country. Your remarks (teleprompted/10 minutes) thank your supporters and offer three reasons why we will win this election: achievements, ideas and trust. OCT-08-1992 10:54 FROM TO 82024566218 P.03 Presidential Remarks: Victory '92 National Fundraiser Houston, Texas 8 October 1992 Thank you Mr. President -- and thanks to all our friends in every city. My special thanks to Bob Mosbacher ------------------------- who did a great job, and broke the news to me with such diplomacy -- that far more people wanted to be with "the Silver Fox" up in New York - than down here with me in Houston., 11 Mrs. Bush's Scheduly As you can imagine, I'm not much in the habit of quoting polls these days. But I couldn't help but notice a new poll that came out just last night. It wasn't CNN, or ABC, or Gallup or The Wall Street Journal. It was that little kid's magazine -- Weekly Reader. They polled over 600,000 kids across America. 39 percent wanted Bill Clinton for 56 President. 55 percent wanted George Bush. 11 Before you think that the pressure of the past few months has gone to my head, and that I'm seeking solace in 4th graders - - let me point out something. Weekly Reader isn't a bad barometer of what happens in elections. That particular poll hasn't been wrong - since 1956.// But this is admittedly a weird year, and I don't want to leave anything to chance. So when the Democrats leave town next week, I'm asking Bob Dole, Bob Michel and all the other OCT-08-1992 10:55 FROM TO 82024566218 P.04 there are 27 2 amendments this would be 28th. Republicans to sneak up to Capitol Hill and pass the (37th) amendment --- lowering the voting age to five-years-old.// Governor Clinton can go after the MTV vote. We'll tear him niu apart on Sesame Street. 11 But seriously -- forget the polls. Forget the pundits. We're going to win this thing. We're going to lead this nation for four more years.// Let me tell you three reason why I'm so confident. First, our record. 2WORDS! We've heard alot of talk this year about what's wrong with America but lets not lose sight - of the grand victory we have helped win for all humanity. I've been preparing for my debate this Sunday. And my thoughts went back to another debate -- 12 years ago -- between Jimmy Carter and Ronald Reagan. Oct 28, 1980 Remember how President Carter made such a big deal -- of how his young daughter worried -- had-nightmares, he said -- about DID NOT SAY THAT the specter of nuclear war? Fruden Ryon House Well, we fought a policy of peace through strength. And 12 OVER A BILLION years later, (800 million) people -- in every corner of the globe -- have enjoyed their first breath of freedom. Juseph And tonight -- as American kids pull back the covers and shut off their talking Barbie Dolls - they think not of nuclear weapons - but of the sweet dreams of peace. Does that matter? You bet it does. OCT-08-1992 10:56 FROM TO 82024566218 P.05 3 The second reason we will win? Our ideas make sense to middle-class Americans. Governor Clinton has done a good job of pummelling me - quoting statistic after statistic -- tearing down America's economy. But our problems are never put in context of the global slowdown -- and only now -- are people starting to compare our solutions. clintons J 9.25.92kg of ct. Governor Clinton likes to say he is -- quote - "a different kind of Democrat." Well, to me there's nothing "different" about $150 billion in new taxes - more than Michael Dukakis and Walter Mondale issues combined. And there's nothing "different" about making pie in the sky ON promises with one hand -- while pulling dollars out of working people's wallets with the other. In June, Governor Clinton proposed $220 billion in new government spending Ctr Cler he called it "investment" -- and he used the same tone that doctors use when they say 'this shot won't hurt one bit." I thought that would satisfy Governor Clinton's appetite - 2 WORDS!! but it turned out to just an horsd oeuvre. (June 20) We did a little calculating -- and since that day in June - - Governor Clinton has promised at least another $200 billion in quote --- investments and those ar just the ones we been abte to put 8 price tag on, A billion dollars in new promises concet wpedit per Ed walters Dan Me Grounty whove been working on these #s w Ciccone. OCT-08-1992 10:56 FROM TO 82024566218 P.06 4 every single day. Governor Clinton has earned a new nickname -- "Billion Dollar Bill." But whose going to pay Bill's -- bill? The middle-class. THIS NO, ISKIND This week, The National Association of Business Economists OF SEPT. NARROW. 14 compared Governor Clinton's "Billion Dollar A Day" spending plan THEY WERE COMPARING to my pro-growth policies of smaller government and lower EVERYTHING taxes. FROM X TAXES The vast majority said that economic growth would be higher TO TRADE RU REGULATION. NAGE under the Bush plan. Inflation would be lower, interest rates VP would be lower -- and the budget deficit would be smaller. 212 393. Governor Clinton said this week that history is on "his why 6800 S pace would side" (but I fear his inexperience is showing. stamp speechese he put last couple days this in 3rd i can't From Managua to Moscow history is moving away from taxes person find thisand regulation and central control. if he is Do you History is casting aside the government planner who spends Falking? have the wealth of nations -- and lifting up the men and women who any create it. idea where No Governor Clinton, history is on our side -- and that's 26 it why we will make history in as days. 11 came from ? One final reason we will win -- in a word -- "trust." I have had the privilege of leading this nation through challenging times -- both around the world, and here at home. I have made some mistakes and I have admitted them. But I believe I have been a good leader. 11 OCT-08-1992 10:57 FROM TO 82024566218 P.07 5 I have made the tough decisions -- and I have tried to fulfill my obligation -- with the dignity, intelligence and respect that is worthy of this office you have entrusted me. The world is still a dangerous place and there are still difficult decisions to be made. I think the American people understand this in their hearts -- they respect my experience and X & my ability to make a tough decision -- and they will reward that X on November X 3rd.// conect per Jennifer Thossman, It has been said that a friend is someone who knows everything there is to know about you - and likes you anyway. Tonight I would add that the definition of a friend is someone who stands by your side while you're behind, SO that you can pull ahead. Barbara and I are blessed with thousands of friends -- and you have touched our souls tonight. As we say thanks, I remind you that our struggle is to more than win an election. Our struggle is to renew America -- so that we can match the peace we have achieved in the world, with peace of mind here at home. Tonight, you have given me the strength, the passion, the inner confidence -- to take our ideas to the American people for 25 more days. You are sending me into St. Louis - with a full head of steam. Thank you all for your support. God bless the United States of America. THE WHITE HOUSE Office of the Press Secretary For Immediate Release October 8, 1992 REMARKS BY THE PRESIDENT AT VICTORY '92 DINNER J.W. Marriott Hotel Houston, Texas 9:08 P.M. CDT THE PRESIDENT: Thank you all very much. (Applause.) Thank you. AUDIENCE: Four more years! Four more years! Four more years! Four more years! THE PRESIDENT: Thank you, President Reagan. Thank you, my friend, and thank you for all that you taught me in those eight years when I was privileged to serve at your side. Let me also give my thanks to Barbara, working so hard up in New York tonight, but all across this country. To President Gerald Ford, for whom I have unlimited respect. For my running mate and my partner, Vice President Dan Quayle, out there in St. Louis, and Marilyn. And to Bob Dole and Bob Michel, I couldn't ask for two finer, more principled leaders in the two houses of Congress. And I just wish we had control of both houses to move this country forward even faster. (Applause.) And I was touched by what my friend Arnold Schwarzenegger said -- and he is a friend, and I value that friendship. And to all of you and the good friends watching in over 100 cities and in 30 states, you have touched my heart this evening. Let me also add my special thanks to Ted Welch, who ran this whole effort. To Bob Mosbacher, to Rob Mosbacher, next to me here, to all our finance chairs. And, of course, a great party Chairman, Rich Bond, the Chairman of the Republican National Committee. (Applause.) And this evening is for our entire ticket, from top to bottom, the proud Republican team. And as you can imagine, I'm not in the habit much lately of quoting polls. (Laughter.) But Rob reminded me of something; I couldn't help but notice that new poll that came out just last night. It wasn't CNN or ABC or Gallup or The Wall Street Journal; it was that little kids' magazine, Weekly Reader. And they polled over 600, 000 kids across America -- 39 percent wanted Bill Clinton for President and 56 percent wanted George Bush. (Applause.) And before you think that the pressure of the past few months has gone to my head and that I'm seeking solace in fourth graders -- (laughter) -- let me point out something. Weekly Reader is not a bad thermometer of what happens in elections. That particular poll hasn't been wrong since 1956. (Applause.) But this is admittedly a weird year, the strangest year I can ever remember in politics. And I don't want to leave anything to chance. So when the Democrats leave Washington next week, or in the few days, I'm asking Bob Dole, Bob Michel and all the other MORE - 2 - Republicans to sneak up to Capitol Hill and pass the 28th Amendment, lowering the voting age to five-year-olds. (Applause.) Let Governor Clinton take his saxophone and go after the MTV vote -- (laughter) -- we'll tear him apart on Sesame Street. (Applause.) But, seriously, forget the polls. Forget the pundits. We are going to win this election. (Applause.) And we're going to lead this nation for four more years. And let me tell you three reasons why I remain so confident. The first is our record. We've heard a lot of talk this year about what's wrong with America. But let's not loose sight of the grand victory that we have helped win for all humanity. And as I study for the debate this Sunday, my thoughts went back to another debate 12 years ago. I believe it was in Cleveland with President Reagan between Jimmy Carter and then- challenger Ronald Reagan. And in his closing statement, President Carter, speaking from the heart, talked about how he'd had a conversation with his daughter, Amy, in which she said that the control of nuclear weapons was the greatest problem facing mankind. Some laughed, I didn't; and nor did President Reagan. Well, President Carter and many well-meaning people advocated at that point a nuclear freeze. Remember the freeze movement? But President Reagan and I fought for a policy of peace through strength. And 12 years later, over a billion people in every corner of the globe have taken their first breath of freedom. (Applause.) And tonight, as millions of American kids pull back the covers and shut off their talking Barbie dolls -- (laughter) -- they think not of nuclear weapons, but of the sweet and satisfying dreams of peace. And does that matter? You bet it does. (Applause.) The second reason we'll win is because our ideas make sense to middle class Americans. Governor Clinton likes to quote statistic after statistic, all kind of tearing down America, pointing out how bad everything is. But our problems are never put in the context of a global slowdown. And only now, only in the past few days, have people really started to compare our solutions. Governor Clinton likes to say that he's, "a different kind of Democrat." Well, to me there's nothing different about $150 billion in new taxes, more than Michael Dukakis and Walter Mondale combined. And there's nothing different about making pie-in-the-sky promises with one hand while pulling dollars out of working people's wallets with the other. And in June, Governor Clinton proposed $220 billion in new government spending. And he called it "investment." And he used that same tone that doctors use when they say, this shot won't hurt you one bit. (Laughter.) And I thought that would satisfy Governor Clinton's appetite, but it turned out to be just an hors d'oeuvre. We did a little calculating. And since that day in June, Governor Clinton has promised at least another $200 billion "in investments." And those are just the ones we've been able to put a price tag on -- a billion dollars in new promises every single day. And so Governor Clinton has earned a new nickname -- Billion Dollar Bill. (Laughter and applause.) But who is going to pay Bill's bills? The same people who always pay the middle class. They're going to do it. MORE - 3 - A couple of weeks ago, the National Association of Business Economists compared Governor Clinton's billion-dollar-a-day spending plan with my pro-growth policies of smaller government and lower taxes. And the vast majority said that under our plan, under my plan, inflation would be lower, interest rates would be lower, and the budget deficit would be smaller. And Governor Clinton said this week that his side is, "on the right side of history." But I fear his inexperience is showing. From Managua to Moscow, history is moving away from taxes and regulation and central control. (Applause.) History is casting aside the government planner, who spends the wealth of nations, and lifting up the men and women who create it. No, Governor Clinton, history is on our side. And that's why we will make history in 25 days. (Applause.) And I believe the third reason -- I really believe this one -- one reason we will win, in a word, is trust. We've spent most of the time in this campaign talking about economic and domestic policy, as well we should; because those are the most important problems facing us today. We should remember, however, that when we elect a President of the United States, we're electing someone who at any time may have to deal with the awesome decision of sending someone else's young son or daughter, America's men and women, into battle. And I had to make that decision in 1989, and then again in Desert Storm. And the President we entrust with these decisions must have character, honesty and integrity. And last night on the Larry King Show, I was asked about some issues in my opponent's background. And let me repeat the point I made, because I feel so strongly about it: My opponent has written that he once mobilized demonstrations in London against the Vietnam War. And I simply for the life of me cannot understand how someone can go to London, another country, and mobilize demonstrations against the United States of America when our kids are dying halfway around the world. (Applause.) The issue here isn't patriotism. You can demonstrate all you want here at home. Barbara and I look out, as Ron and Nancy did, out of the White House. And there's somebody out there every single day, properly protesting or raising objections under -- exercising their rights. That's part of America. But I can't understand someone mobilizing demonstrations in a foreign country when poor kids, drafted out of the ghettos, are dying in a faraway land. You can call me old-fashioned, but that just does not make sense to me. (Applause.) I think the American people respect experience and character and proven ability to make a tough decision. And I hope that means that they will vote for me on November 3rd. (Applause.) It has been said that a friend is someone who knows everything there is to know about you and likes you anyway. (Laughter.) And, tonight, I would add that the definition of a friend is someone who stands by your side while you're behind, and so that you can pull ahead. Barbara and I are blessed with thousands of friends. And you have touched our hearts tonight. And as we say a hearty thanks to all of you, I remind you that our struggle is to more than win an election; our struggle is to renew America so that we can match the peace we have achieved in the world with that peace of mind here at home. MORE - 4 - And, tonight, you have given me the strength and the passion and the inner confidence to take our ideas to the American people for 25 more days. And you're sending me into St. Louis for that debate with a full head of steam. (Applause.) And thank you for your support. And God bless the United States of America. Thank you all very, very much. (Applause.) END 9:22 P.M. CDT TIONAL THURSDAY, OCTOBER 8, 1992 A33 "They have tremendous power if they only use it." JEANNE CHINARD ocrat Poll, on a Streak, Picks Bush ing to be perfect," she said. "We're not point going to apologize for it." aign Mr. Bush got 337,079 votes, or 55.56 cent percent, while Mr. Clinton trailed with sub- t in MIDDLETOWN, Conn., (AP) Oct. 7 those in kindergarten through fourth 237,441, or 39.14 percent. less - Forget the polls showing Gov. Bill grade, said the publication's editor in Ross Perot was out of the race when Mr. chief, Sandra Maccarone. the poll was issued, but the "other" Clinton ahead in the race for the White The results came as something of a category drew votes from 32,176 stu- House. A student newspaper that has surprise, given that three other dents or 5.3 percent. Clin- picked the winner in every Presidential 0 27 election since 1956 weighed in today "adult" polls released today showed Au- with good news for President Bush. the Democratic challenger with dou- ters' Mr. Bush was the choice of 55 per- ble-digit leads. More national news, also cent of the more than 600,000 students But Ms. Maccarone stood by the 64- at in surveyed in the Weekly Reader, draw- year-old weekly's perfect record. pages B22 to B26. ing especially heavy support among "We're going to assume it's still go- b Sale PAGE A6 / THURSDAY, OCTOBER 8, 1992 The Washington Times Smooth talker INSIDE THE Industrialist J. Peter Grace is a 55.569. through high school, gave Mr. Bush 56 percent of the vote and 46 states. Bill Clinton got 39 percent and four Hig man obsessed by rhyme. states. He referred to New York Gov. BELTWAY Other candidates received 5 per- Mario Cuomo as "Cuomo the homo" cent of the votes. But in analyzing and New York Mayor David Din- the data, Weekly Reader sees an kins as "Dinkins the pinkins," the extension of a pattern that has oc- con latter term, apparently, a bit of curred before. word play on the political use of said: "He and his friends have been Pupils in kindergarten through "pink" as in, say, pinko academics. stuffing the minority for so long fourth grade (63 percent of all The chairman of the chemicals that when they encounter someone those voting), gave their vote to Mr. giant W.R. Grace & Co. made these using the rules they have set, they Bush. Pupils in fifth grade through is remarks while praising Wisconsin become vituperative. It's not a high school (37 percent of the vot- Gov. Tommy G. Thompson, a Re- pleasant sight." ers) gave their vote to Mr. Clinton. publican, at the opening of the cor- In previous polls, pupils in kin- dergarten through third grade By Nancy poration's Ambrosia Chocolate Co. THE WASHINGT factory in Milwaukee. He lives voted for the incumbent, but never Mr. Dinkins said he could live before has the difference in the A Texas He is famous for never being at with Mr. Grace's "pinkins" com- vote between elementary- and the Suprene the scene of an accident - any ment but "I'm greatly offended by upper-grade students been as er he is entre accident. So this elusive figure has his comments about the governor. great. tion to fed tantalized the news-gathering It's sad. Obviously [Mr. Grace] dence sugge trades for weeks as he remained has a problem, a serious problem." Eleven yes unseen behind the most secure Mr. Grace, the head of President Hold everything Leonel T. He doors in the nation. Reagan's Private Sector Survey on Deborah Orin, Washington bu- that he But, lo, there was the absent ad- Cost Control, had already moved to reau chief for the New York Post, will clear he viser yesterday, sitting right next to make it less of a problem. He got President Bush in San Antonio as got the relevant details in the first murdering out of town ahead of his poetry. he and the leaders of Canada paragraph of her report on Wash- police office Last year he moved Grace's cor- and Mexico initialed the North ington's most recent filibuster Some stated the porate headquarters from New American Free Trade Agreement. Tuesday: as "wheth" York City to Boca Raton, Fla. James A. Baker III. "Sen. Alfonse D'Amato sang 'South of the Border,' sipped tea a violation Still, many looked, shook their and popped throat lozenges but Constitute The short goodbye The House's parting memory of Bill heads and remained unconvinced. Dannemeyer is likely to endure. never once went to the bathroom execute In fact, the joke at Bush-Quayle re- The closing moments of this election headquarters goes some- as he tied up the Senate for 15 one who year's House session showed our hours in a futile filibuster to save cent." thing like: "Poor Jim Baker? In an- lawmakers in a state of nature. Justis other couple months his face will upstate jobs." Wow, savagery. Mr. Obey said he was annoyed took be on a milk carton." Shortly after noon Tuesday, that Mr. Dannemeyer, who is leav- struction ing Congress after an unsuccessful But eureka! There in Texas, a House Speaker Thomas Foley an- Senate bid this year, had killed the New York Times reporter an- Political theory "This" nounced that Democrats were Justice chance for lawmakers to say public nounced to his colleagues that seeking consent to pass one more P.J. O'Rourke, as he so often embers goodbyes on the House floor. someone was actually seen bill, then open the floor so mem- does, has evolved a political theory "Ther bers could give speeches of fare- This ire stemmed from an ear- touching Mr. Baker, "so he wasn't a that smacks of the most original cence. lier comment Mr. Dannemeyer hologram." well to departing colleagues. thinking on the subject since Plato Mr. But departing Rep. William Dan- made privately to colleagues. "He reported on the shadows on the der nemeyer apparently thought he'd said, 'Look, I hate this place, I hate Bush in a walk wall of the cave. must rather have an aspirin. He de- each and every one of you, and I Mr. O'Rourke compared the Re- Sta. manded an adjournment only have an hour and a half left President Bush will be re-elected publican and Democratic parties to Herry vote, which takes precedence over here,' Mr. Obey recounted. president if the nation's schoolchil- gigantic Mexican pinatas: State other business. The Democrats "It's childishness like that all dren are right - and they haven't "The American voter is then be yielded and school was out. year long that has made this place been wrong in 36 years. blindfolded and given a stick," he trial Angered, Rep. David Obey, Wis- a combat zone instead of a place of The Weekly Reader National said. "Then the voter swings the consin Democrat, confronted Mr. thought He was using his Presidential Election Poll, involving stick wildly in every direction, try- Dannemeyer. "Above all others, you venom to muck up the House, and 606,696 children in 23,000 class- ing to hit a presidential candidate have absolutely no redeeming so- he didn't care," Mr. Obey told the rooms across America, was held in on the head and knock some cial value." he told the California Associated Press. late September. into him." Republican. Of Mr. Obey, Mr. Dannemeyer The children, in kindergarten OCT 08 '92 12:38 FREEDOM HOUSE 212 477 4126 P.2 The Comparative Survey of Freedom 1991-1992: Between Two Worlds R. Bruce McColm The twentieth century is dramatically and the dramatic transformation of the closing on one grand historical epoch former Soviet Union, recorded the freest that began with the Russian Revolution year in its 21-year history. It was the and the signing of the Treaty of first year in which both the number of Versailles, and ended with the breach in Free countries and their populations the Berlin Wall and eventual implosion outhumbered the Not Free countries and of the Soviet Union. The last three- their populations. This year India, the quarters of a century have been defined world's most populous democracy, fell to by a bitter clash of ideologies, two Partly Free for the first time since martial World Wars, the Holocaust, the Gulag, law was declared in 1975, thereby the Chinese Cultural Revolution, and significantly altering the population their reproduction in many smaller figures. Even with such a significant loss, conflicts throughout the developing the number of Free societies continued to world. This old epoch remains the rise to an all-time high of 76. More bloodiest era in human history and may remarkably still, the Survey found that well be viewed in the funure as an there were 91 democracies and another 1992 aberrant period. Yet remarkably, the 35 countries in some form of democratic VS. liberal democratic idea, which faced three transition-a staggering 126 out of the waves of reverses in the 1920s, 1940s 183 nations evaluated-compared to 1980 and 1970s, triumphed over the challenge forty-four democracies in 1972 and 56 in posed by fascism in the first part of this 1980. era and over communism and its The sweep and depth of this global derivatives in the second. transformation are stunning when The past three years have seen the compared to the different periods of greatest expansion of freedom in history. democraric development. Harvard Over one-third of the nations on earth, professor Sam Huntington has identi- encompassing nearly 30 percent of the fied three "long waves" of democracy. earth's population, have consciously The first began in the early nineteenth decided to radically alter their political century with the extension of the right systems for more open and democratic to vote in the United States and forms of government. The twenty-first continued until the 1920s. During this century will again challenge liberal period, some 29 democracies came into democracy with questions conceming its being. With the accession to power of ability to produce prosperity and a just Benito Mussolini in Italy in 1922, the social system. first reversal began, lasting until 1942, when the number of the world's democracies had been reduced to Free societies-an all-time high twelve. Last year's Survey, reflecting the The triumph of the Allied Forces triumphal revolutions in Central Europe in World War II triggered a second OCT 08 '92 12:38 FREEDOM HOUSE 212 477 4126 P.3 Between Two Worlds 51 year's upward trend of 36. Declines Free category and a decline of 8 in the were registered by another 17. Twenty- Not Free category since January 1991. four nations improved their category ranking and only six reversed their ranking. More impressive is the fact that A significant three-year trend nearly 15 billion people or roughly 28 This year's findings continue a three-year percent of the world's population came trend of a significant reduction in the to live in societies where there has been number and percentage of the world living a conscious attempt to replace their in Not Free societies. Since our January political systems with a more 1990 findings, 15 additional countries have democratic alternative over the last three gained a Free status, 18 additional are in years. Partly Free, and there has been a reduction Of the 183 nations evaluated by the of 17 societies in the Not Free category. Survey, 91 have democratic systems, 15 For the sake of comparison, fifteen years of which are considered in the Partly ago, 43.9 percent of the world lived in Not Free category; another 35 governments Free societies, which is 12.1 percent more are in varying degrees of a transition to than in 1992. The world population has a more open and pluralistic system. increased by 1.36 billion people since Once major political competitors to 1977, while people living in Not Free liberal democracy, Communist states societies have actually declined in real have been reduced to six, and traditional terms by 56.4 million. On the other hand monarchies to twelve; military regimes the population of Free societies has number eighteen. Of all the nations increased by 570 million from fifteen years Freedom House tracks, 38 remain one- ago, and Partly Free societies have or dominant-party political systems. The increased by 847.9 million over this same liberal democratic idea has triumphed as period, a net combined gain of 1.418 the preferred model for political develop- billion people. ment. It is sobering to note that in 57 According to the Survey, out of a of the 126 countries that are either world population of 5.37 billion people, democratic or in transition to democracy, 1.36 billion, (25 percent) live in countries military, para-military and security forces categorized as Free, 2.31 billion, (43 play a significant political role. Any shift percent) in Partly Free, and 1.71 billion, in the military's allegiance to the (32 percent) in Not Free societies. democratic process could jeopardize this However, a world without India and global trend. China, which account for a combined 2 The desire for freedom may be an billion people, would show 1.36 billion, inherent hurnan characteristic but the or 40 percent of the earth's population, habits and behavior of democracy must living in Free societies, 1.51 billion, or be learned over time. The Freedom 44 percent, in Partly Free societies and House Comparative Survey, which 560 million people, or 16 percent, in Not monitors political rights and civil liberties Free societies. in 183 nations and 62 related territories, This significant reduction in Not Free this year classified 76 nations and 48 societies over the last several years territories as Free, 65 nations and 4 terri- should encourage increased efforts to tories as Partly Free and 42 nations and bring pressure on those societies that 10 territories as Not Free. The findings remain closed. Peace negotiations represent a gain of 11 countries in the marginally improved the human rights OCT 08 '92 12:39 FREEDOM HOUSE 212 477 4126 P.4 The Survey 1992- The Year in Review The difficulties in evaluating the stare of Lithumia and the twelve former republics freedom around the world have been of the Soviet Union. For the first time, inherent in the Survey project since its Freedom in the World provides an inception 21 years ago. This has been account and the rating of political rights especially true over the past three years as the rare of political change around the world has 31 Countries that changed categories accelerated in an unprecedented Country 1991 1992 manner. Albania Not Free Partly Free For example, in 1989, an Angola Not Free Partly Free unusually volatile period compared Antigua and Barbuda Free Partly Free to past Surveys, 27 countries Bangladesh Partly Free Free changed their ratings. The Benin Partly Free Free following year 56 nations, or over Bulgaria Partly Free Free one-third of the world, changed Cape Verde Partly Free Free Central African Not Free Partly Free because of real political events Republic rather than from any methodologi- Congo Not Free Partly Free cal reconsiderations. Again in Estonia* Free 1991, the world experienced Ethiopia Not Free Partly Free radical political movement as 58 Georgia Not Free Guinea-Bissau Not Free countries changed in their ratings. Partly Free Haiti Partly free Not Free 41 countries improved their human India Free Partly Free rights situations, comparable to 36 Latvia* Free the year before, while declines Lebanon Not Free Partly Free were registered by 17, compared Lesotho Not Free Partly Free to 20 the year before. 1991 saw Lithuania* Free Mali Not Free 31 countries change their category Partly Free Mongolia Partly Free Free ratings, compared to 17 the year Mozambique Not Free Partiy Free before, moving between the Nepal Partly Free Free categories "Free," "Partly Free" Niger Not Free Partly Free and "Not Free." Of these 24 Romania Not Free Partly Free nations improved categories, while Sao Tome and Partly Free Free 7 lost ground. Principe Slovenia Free The Survey itself has expanded Thailand Free Partly Free this year. The dissolution of the Uganda Partly Free Not Free Soviet Union and the creation of Yugoslavia Partly Free Not Free the Commonwealth of Independent Zambia Partly Free Free States have generated fifteen new national entities-the three Baltic * Formerly under control of the Soviet Union; countries of Estonia, Latvia and new to the Survey. OCT 08 '92 12:37 FREEDOM HOUSE 212 477 4126 P.1 Freedom House FAX: (212) 514-8040 120 Wall Street TEL: (212) 514-8050 Floor 26 New York, NY 10005 Facsimile Cover Sheet Date: Sent: Time: TO: JENNIFER GROSSMAN COMPANY: WHITE HOUSE FAX: 202-456-6218 JOE RVAN FROM: Number of PAGES: 4 INCLUDING THE COVER SHEET. COMMENTS: THESE ARE SE LECTED FROM THE 1991-92 FREEDOM In THE WORLD, THE F.H, YEARBOOK, SEE SPECIFIC PASSAGES NOTED, That looks like it'll cause 9872 his Phil bis(Eot) call Steve AF I Smith of Business after before Donna Harper, 205-6913.] Annual Report of small Business Protis school Chief Economist 205-6533 205 205-6600 6600 Julie weeks lo A no data on small corporation most rep form - only have sole proprieters of rever (reg, 80 SB In closest IRS, terms is net income 1991 the income of sole proprietors billion d quillion partners increased from 352.6 to 369.5 billion or 4.8% & appox My 2006 Cresp at the same time overall data in earned income then in the by economy increased by 2.8% amid & 50 1 sqol $ The 3 bosser therefore, small sole proprists to partnes did better. Smallest of the small business indeed betton I their become snall did famly well the the general eas 863- 863-8666 8666 lang King Monda Are you going to win? We have a good chane, be carse histy we are on The right side of history. SENT BY:Xerox Telecopier 7021 :10- 8-92 ; 4:13PM ; 201-> 2024566218;# 1 Republican National Committee FACSIMILE TRANSMISSION DATE: 10/8/92 TO: Jennifer FAX NUMBER: 456-6218 FROM: Eric NUMBER OF PAGES INCLUDING COVER SHEET: 3 IF ALL PAGES ARE NOT RECEIVED, PLEASE CALL (202) 863-8666 The First page is the citation and the second page has the quote Dwight D. Eisenhower Republican Center 310 First Street Southeast Washington, D.C. 20003 (202)863-8500 FAX: (202) 863-8820 SENT BY:Xerox Telecopier 7021 :10- 8-92 ; 4:13PM ; 201-> 2024566218:# 2 CNN "LARRY KING LIVE" INTERVIEW WITH: GOVERNOR BILL CLINTON, D-AR AND SENATOR ALBERT GORE, D-TN MONDAY, OCTOBER 5, 1992 The following is a transcript of CNN's "Larry King Live." This program is copyrighted by Cable New Network. The program material is the property of Cable News Network, and it is, therefore, MANDATORY that any excerpts and quotes taken from this program or any references made to this program's content include attribution to CNN and the above program title. MR. LARRY KING: Great pleasure to have both candidates with us. Al Gore is just back from Washington, where he voted to override the President's veto of the cable bill. Right? SENATOR ALBERT GORE: That's correct. The House will vote -- MR. KING: What was the vote? SEN. GORE: -- shortly. The Senate voted 74-25. If the House follows suit, then this will be the first time in four years that a veto by President Bush has been overridden. It's kind of a -- a sign. It's a bell weather. It's an indication of the winds of change that are blowing across the country and when President Bush sided with the cable monopolies, the majority in the House and Senate sided with the people of this country. No business should have neither competition nor regulation nor accountability. MR. KING: Do you expect the House to override? SEN. GORE: I certainly hope so. I'll knock on wood. I think it's likely to -- MR. KING: We'll know any minute and I'll pass it along (to you?). SEN. GORE: We'll know - - we'll know soon. I certainly hope so because the people out there watching have been getting ripped SENT BY:Xerox Telecopier 7021 :10- 8-92 4:14PM ; 201- 2024566218:# 3 "How many Republicans here are for Clinton-Gore? Wave your arms." And there's just a sea of arms. "How many former Perot supporters?" "How many independents?" "How many Democrats?" America is coming together around the proposition that we have got to have change. We cannot continue what we've had, because it's not working. And the real choice is whether or not we have the courage to see change and a new direction, a new generation of ideas to get the country moving again, or whether we stick with the same old approach that hasn't worked. And I think there's a strong majority building in favor of change. MR. KING: So you think you're going to win? SEN. GORE: Well, I think that we've got 30 days of real hard work to do, if it continues going the way it is. And it's up to the American people, but if it continues going with them the way it is, then I think so. MR. KING: Are you going to win? GOV. CLINTON: We have a good chance, because history -- we are on the right side of history. MR. KING: Are you ahead? GOV. CLINTON: I think we're ahead now. But the most important thing is we are speaking to the real problems and the real promise of this country, the real concerns of ordinary Americans. And we are on the right side of history. We are trying to change this country in ways that will help us to open up opportunity in this era. MR. KING: Do you think in these last 30 days it will on -- this could be on all three sides - this is going to get dirty or cleaner? Are we going to have issues become prevalent, or non- issues become prevalent? SEN. GORE: Oh, I think Bush is already throwing everything, including the kitchen sink, into this. This advertisement that's so misleading is just one example. MR. KING: Do you expect an October surprise? GOV. CLINTON: I wouldn't be surprised by anything. He said when he started this camaign he would do whatever he had to do to Introduction Once every four years the current vice-president of the National Association of Business Economists has the interesting opportunity to comment on the association members' views in a period in which there is strong and important public interest in economic policy and the impact of that policy on their individual prospects and current environment. The nation's voters will be making a choice of presidential and congressional leaders in a few weeks. This year there is an especially strong interest in economic policy since many consumers, business leaders and workers are especially worried about the current economic situation. This review is designed to blend the results from both the economic outlook survey and the policy survey. It will begin with a brief view of the current economic outlook of NABE members, followed by a review of the results of the policy analysis, and concluding with more details from the economic outlook survey. Four years ago NABE's members, by a margin of 53 to 37 percent, expected George Bush to be elected the next president. This year the members give Governor Clinton a lead of 2 to 1, with 66.7 percent expecting Clinton to win. In 1988. 61 percent of NABE's policy panel said George Bush's economic policy proposals "would be better for maintaining stable growth and moderate inflation in the years ahead." This year a surprising 59.5 percent hold the same view, although they don't expect a Bush victory. In this report we describe NABE policy recommendations and the macro forecasting panel's outlook of the balance of 1992 and for 1993. Nearly three hundred members of the National Association of Business Economists participated in the August 1992 macro economic and policy surveys. As explained later, the macro forecast calls for 1992 growth in Gross Domestic Product to be 1.8 percent and for 1993 growth of 2.7 percent growth is expected. Inflation for 1992 will be 3.1 percent and for 1993 it will rise slightly to 3.4 percent according to the macro panel. The policy panel's views are of special interest since they comment on both the political feasibility and the economic merit of many of the spending reductions and revenue increasing proposals that are now becoming the center of the election debate. When asked which indicators were the best single measure of the current thrust of monetary policy, the responses were: The Fed Funds Rate Level 47.2% Recent Real Money Growth Rates 21.9% Recent Nominal Money Growth Rates 14.6% Recent Total Reserves Growth Rate 6.0% The Borrowed Reserves Level 4.7% At the present time the key issue affecting monetary policy is, "The pace of economic growth," according to 65% of the participants. Other key issues cited were unemployment (18.6%), inflation and inflationary expectations (10.2%), the value of the dollar (2.1%) and other (3.7%). Further, 72.6% said that for the second half of 1992 the top priority of the Federal Reserve should be recovery. Another 23.9% said the top priority of the FRB should be to "reduce long-term inflation". Fiscal Policy In July 1992, the Administration released its Mid-Session Review of the Budget. This review included the deficit and spending growth estimates in Table 2 below. This was the starting point for the discussion of fiscal policy. Table 2 -- Deficit and Spending Growth Estimates Fiscal Years - Billions of Dollars 1991 1992 1993 Unified Deficit $269.5 $333.5 $341.0 Deposit Insurance 6.7 11.0 59.4 Desert Storm -43.2 -5.0 0.0 Deficit, less Deposit insurance and Desert Storm $246.0 $327.5 $281.6 Fed. Spending Growth 5.8% 6.3% 6.9% ex RTC 11.0% 3.5% The NABE policy panel believes that this fiscal policy is too stimulative (44.7%), too restrictive (24.7%) or about right (30.6%). This is consistent with the views that they would prefer it to be more restrictive in the next six months (43.2%) or unchanged (31.6%). Only 25.2 % favored a more stimulative policy; the same as the group that views current policy as too restrictive. Only 6.4% expect fiscal policy to actually become more restrictive. About one-third of the panel said that a stimulative fiscal package should be proposed in 1993, with nearly two-thirds suggesting a package that would add less than $50 billion to the federal deficit. At the same time, 63.1% opposed reducing the social security tax to pay for the package of fiscal stimulus. Likewise, over 80% opposed reduction of the unemployment insurance tax to offset the additional fiscal spending. the respondents, with 9 out of 10 in the approval category indicating that the change should be permanent. At the same time, two thirds of the panel opposed lower tax reductions for families with $20,000 to $50,000 of income. Fiscal Spending Reductions Another approach to dealing with the federal deficit is to cut spending. The panel was asked to rank the political feasibility and the economic merit of reducing spending in a number of categories. We will begin by looking at the responses for reduced spending on the Strategic Defense Initiative. Responses (on a scale of 5 to 1 from highest to lowest feasibility or merit) were: Table 3 -- Reduce Spending on the Strategic Defense Initiative Highest (5) (4) (3) (2) (1) Lowest Political 25.9% 44.0% 3.7% 5.2% 1.3% Economic 40.2 22.6 24.8 6.4 6.0 Thus, nearly 70% of the panel thought that the political opposition to reduced spending on the Strategic Defense Initiative (STI) could be overcome, and a significant group of over 40% ranked the proposal high on economic merit. Reductions in the Strategic Defense Initiative thus offers a tempting political and economic target. In the views of the NABE Policy Panel it is both politically feasible to achieve cuts in the STI and it is a proposal that does not have high economic costs other than the impact of the spending cutbacks for defense contractors. However, this fortunate merging of political and economic elements does not exist for many aspects; of cutting federal spending. This is the heart of the dilemma for policy makers that has been evident since the reform of the budget act in 1974 and the rebellion in Congress which reduced the power of committee chairmen. The so-called Iron Triangle of the bureaucracy running programs, congressmen with oversight interests, and the segments of society affected by government programs has made control of government spending virtually impossible. As an example of the tough political and economic choices that should and must be made to correct the fiscal crisis, the panel was offered several other topics for ranking on the scale of political feasibility and economic merit. Table 4 --Selected Areas for Spending Reductions Highest (5) (4) (3) (2) (1) Lowest Weapons -Political 23.8 39.8 26.0 8.2 2.2 -Economic 37.6 30.3 22.2 6.4 3.4 Main & Parts -Political 14.4 29.7 38.4 9.2 8.3 -Economic 9.1 10.3 30.6 23.7 26.3 Defense LF -Political 15.2 28.3 34.8 17.8 3.9 -Economic 27.0 31.3 24.9 12.9 3.9 R&D -Political 12.6 34.8 34.3 14.3 3.9 -Economic 10.8 15.1 25.0 23.3 25.9 Entitlements -Political 2.2 6.9 8.7 36.8 45.5 -Economic 51.1 19.1 15.7 6.4 7.7 Medicare -Political 1.3 3.9 9.5 29.9 55.4 -Economic 26.4 30.3 22.9 12.1 8.2 Agriculture -Political 3.0 8.3 21.7 40.0 27.0 -Economic 60.3 20.3 11.6 5.2 2.6 Civilian -Political 4.8 11.3 27.0 29.1 27.8 -Economic 31.9 19.4 19.8 15.9 12.9 Federal LF -Political 6.9 16.5 31.2 24.7 20.8 -Economic 37.3 25.8 21.9 9.0 6.0 This table shows a high correlation. Actions with high economic merit generally have been ranked as an area with low political feasibility. Only the area of reduced spending on weapons systems has a measure of related support, but even here the economic merit at the highest level is nearly 50% higher than the highest political feasibility. Also in the military area it is interesting that the panel does not see much economic merit to reduced military spending on maintenance and parts, and the panel sees political resistance to cutting the size of the military labor force. Military R&D has a high level of support from the panel as an area of expenditure with positive impact on the economy and hence low economic merit to cutting R&D expenditures. The panel sees very high economic benefit to cutting spending on entitlements and agriculture, but the political feasibility of such cuts is rated as very low. The panel also favors cuts in Medicare, civilian federal departments, and even the federal labor force; but here also, they see strong political support for such functions making the political feasibility of such cuts very unlikely. A weighted index can be calculated by multiplying the percent in a category by the scale (1 to 5). The result is in indicator of the gap between political feasibility and economic merit. The expenditure results are summarized on this basis in Chart 1. Chart 1 -- Weighted index summary of Expenditure Reduction Proposals Expenditure Index Mah & Parts R&D Weapons Defense LF Civilian Eco Pol Federal LF Medicare Agriculture Entillements 0 50 100 150 200 250 300 350 400 450 Tax and Revenue Proposals If there is to be a serious effort to reduce the federal budget deficit, spending reductions must be accompanied with proposals to income revenue. The government can close the budget gap by increasing taxes or by seeking other forms of revenue. Therefore, the NABE Policy Panel was also asked to rate the political feasibility of several tax and revenue proposals that have been in the public debate in recent months. The same scale is used for these proposals. Responses concerning political feasibility and economic merit (on a scale of 5 to 1 from highest to lowest feasibility or merit) were requested for the several proposals. The tax and revenue proposals submitted to the NABE Policy Panel were the following: Place a surcharge of several percentage points on personal income taxes (Inc. Tax Surcharge) Raise the top income tax bracket from 28% to 33% (33% Tax) Raise gasoline taxes by $0.20 to $0.30 per gallon (Gas Tax) Impose a tax on all consumer energy products and services (Energy Tax) Add an oil import fee (Oil Import Tax) Raise other excise taxes, such as those on cigarettes and alcohol (Excise Tax) Raise marginal tax rates for corporations (Corp. Tax) Further limit the deduction for mortgage interest (Mort. Cap.) Restrict deduction of state and local taxes (Reduce State Ded.) Increase taxation of Social Security benefits (Tax Soc. Sec.) Further restrict deductions for business meals and entertainment (Reduce Exp. Ded.) Tax capital gains at death (Death Tax) Tax fringe benefits (Fringe Ben. Tax) Institute a value-added tax (Val. Added Tax) The results of the two rankings (Political Feasibility and Economic Merit) are shown in the Table 5 on the next page. A related question concerning overall revenue policy centered on defining programs that would have a positive impact on long-term growth trends. When asked what options they would favor the panel answered as follows: 1. Reinstate investment tax credit 46.4% 2. Reduce capital gains tax 45.5% 3. Reduce public consumption spending 36.2% 4. Eliminate taxation of dividends 36.2% 5. Increase public works spending 34.5% 6. Increase gas tax 28.9% 7. Increase spending on social programs (head start, etc.) 16.6% 8. Increase taxes on incomes over $250,000 a year 15.3% 9. Reduce the Social Security tax 10.3% 10. Lower middle class taxes ($20-50,000 income/yr) 8.1% 11. Allow IRA withdrawals with payback in two years 4.7% 12. Grant tax credit of $5,000 for new home purchase 3.0% These overall views are consistent with the related data on the individual proposals, but this tabulation gives a perspective on the overall ranking of the specific proposals. The weighted index for revenue proposals is summarized in Charts 2 and 3 below. The index was calculated in the same manner described earlier for the expenditure proposals. Chart 2 -- Selected Revenue Enhancement Proposals - Weighted Index Fringe Val. Added Energy Eco Mortgage Pol Soc. Sec. Corp Tax Gas 0 50 100 150 200 250 300 350 400 Chart 3 -- Additional Revenue Enhancement Proposals - Weighted Index 33% Top Tax Income Sur Tax Reduce Exp.. Eco OI Imports Pol Excise Death Reduce State 0 50 100 150 200 250 300 350 Financial Restructuring: Cyclical or Secular Change? It is clear that a significant amount of financial restructuring has been occurring during the past two to three years. The panel was asked to evaluate the nature and impact of that restructuring. When asked if the economy is now going through a larger, but still typical, cyclical form of credit crunch or if there is something more fundamental going on in the financial system, 80% expressed the view that the current situation is a more fundamental process. Approximately 68% indicated that this period of financial distress has reduced activity in their industry. On a general basis the panel commented on the following solutions to the financial distress in the economic system. The preferred solutions were: Lower interest rates 33.2% Remove constraints on interstate banking 24.4% Reduce overall regulation by Federal authorities 22.1% In my judgment there is a major restructuring that is still to be accomplished, and until the poor balance sheets of households and corporations are revitalized, there will be many difficulties in bringing the economy to a state that is familiar to the traditional economic forecaster. With that sweeping statement, let's turn to the results of the NABE macro panel that was asked to discuss the specific numbers that define the economic outlook. Of course, they do not have a clear crystal ball that predicts the outcome in the election, especially the composition of the congressional delegations. Nevertheless, they are fearless in making forecasts of economic developments in the coming months. These forecasts serve as both a framework for the analysis of our membership and as a benchmark for the public that is evaluating the economic proposals and philosophy of the candidates for public office in the coming period. Thus the results of the macro panel merit your close attention. Outlook for the Economy Weakens While NABE's members do not foresee another recession emerging by the end of 1992 (only 2% rate such an event as higher than a 1 in 3 probability), the average growth for the year has been revised down to 1.8%. At this time last year the members were looking for 2.7% growth for 1992, a forecast which is similar to the forecast for 1993 which is suggested by our panel. In the current survey, business economists are looking for 2.7% growth for 1993; hence the long anticipated recovery remains in the coming year. Further the outlook is remarkably similar for economists in different industry groups; with economists from goods producing firms, and from Trade, Transportation, Utility & communications sectors seeing 1.9% growth for 1992 and economists from other services slightly lower at 1.7% growth. The same small divergence in outlook by sector prevails for 1993 as well. 5 4 3 2 Percent 1 0 -1 -2 -3 -4 1988 1989 1990 1991 1992 1993 Quarter Chart 4 - Gross Domestic Product Growth by Quarter Since 1988. There is No Triple Dip Recent growth in Gross Domestic Product has been positive, with the most recent data showing a three quarter period of negative growth beginning in the second half of 1990 and ending with the decline of the first quarter of 1991. However, some observers have labeled the decline from 1.7% growth in the second quarter of 1991 to 0.6% growth in the fourth quarter as the "double dip," even though growth was positive. Now the "triple dip" label is being applied to the slowdown from 2.9% in the forecasters have positive growth for the next year, so it is clear that an official recession (two quarters of negative growth) is not expected. The average forecast for the lowest 10% is 1.8% growth; only 0.5% lower than the average forecast and 1% lower than the average for the highest 10%. Thus the range of forecasts continues to be in a rather narrow band, a characteristic of forecasts for the past 18 months. A dramatic way to summarize economic conditions in the United States during the past three years is to consider the change in real ($1987) value of final sales of domestic product. In the first quarter of 1990 final sales increased by over 50 billion dollars; in the second quarter of 1992 it is only 57.7 billion dollars higher than it was at the end of 1989. For three years the economy has declined gradually and recovered gradually for Continuing Concern About the Lack of Strength NABE's forecasters continue to look for stronger recovery, but the current results have caused members to take the view that recovery is a few quarters in the future. These views of the future are summarized in Chart 1, "GDP Growth Forecasts by Survey Period. At the 1991 annual meeting of NABE, it was noted that the view of NABE forecasters concerning 1992 had not changed significantly over the year (See Chart 2), but the view concerning 1991 had weakened following the November 1990 survey. This year the outlook for 1992 also weakened during the year, and the outlook for next year is for moderate growth. Thus, throughout 1991 and 1992 the group has been looking for a slow recovery to be stimulated by easing monetary policy. 3 2.5 2 1.5 1991 Forecasts 1 0.5 1992 Forecasts 0 1993 Forecasts 1993 Forecasts Feb-90 May-90 Aug-90 Nov-90 Feb-91 1991 Forecasts May-91 Aug-91 Nov-91 Feb-92 May-92 Aug-92 Chart 5 - The NABE Forecasts for 1991-1993 by Survey Period a net result of no real growth in domestic product. Most of the recovery during the past four quarters occurred in the first quarter of this year. Factors in the Expected Recovery The NABE forecasters cited two primary reasons they expected economic recovery to strengthen. Nearly one-half cited conventional monetary stimulus including the impact of falling interest rates on interest sensitive spending for items such as autos, houses and business capital. Another 45% of the forecasters thought that a "working through" of "structural" imbalances such as high private debt burdens, large government deficits, and depressed real estate values would contribute to the recovery. Fiscal stimulus and "supply shocks" such as a sharp decline in the price of food or energy were cited by about 6% of the forecasters. Over half of the participants in this survey indicated that they had revised inflationary expectations down more than a quarter of a percentage point for the next five years with the majority of that group having revised the average expected inflation rate down by 0.25 to 0.5 percentage points. About 17% of the NABE forecasters have revised their inflationary expectations downward by 0.5 to 1 percentage point. Using the 30-year Treasury bond as a benchmark, the long end of real interest rates averaged between 6% and 7% in the 1980's. In the present economic environment the respondents expected lower real interest rates on average between now and the end of 1997. Nearly 39% forecasted real rates of below 4%, and 49% anticipated real rates in the range of 4% to 6%. Only 13% expected real rates to be over 6% on average for the next five years. With lower anticipated inflation and lower real interest rates, over 56% of the NABE forecasters expect the international value of the dollar on a trade-weighted basis to be up between now and the end of 1997, with over three quarters of the stronger dollar advocates expecting the dollar to increase in value between 5% and 15% over the five-year period. About 41% of the participants in this survey thought the dollar would remain where it is, or decline by 5% to 15%. Given the volatility of currency markets during the past five years the current forecast seems to reflect a more stable exchange rate system in the future. The Impact of Economic Theory on Views of Business Economists Participants in the NABE macro economic policy survey were asked to identify both industry of employment and the predominant theoretical framework that served as the foundation for their forecasts. The largest group resists a "standard" label and is probably inclined toward an eclectic approach to economic analysis. Significantly, despite the attention given to monetary, rational expectations and supply side theories, only one quarter of the participating business economists identified with those theories. Further, economists from "other services" dominate the participants reflecting the influence of financial economists and economic consultants. Historical Track Record for NABE Forecasts (Forecasts made from the previous summer) Real GNP CPI-U* Growth Forecast Actual Diff. Fore. Actual Diff. 1977 5.1 4.7 0.4 6.0 6.7 -0.7 1978 4.5 5.3 -0.8 6.2 7.3 -1.1 1979 2.5 2.5 0.0 7.3 8.9 -1.6 1980 0.1 -0.2 0.3 7.8 9.1 -1.3 1981 0.7 1.9 -1.2 8.9 9.6 -0.7 1982 3.0 -2.5 5.5 8.3 6.4 1.9 1983 2.9 3.6 -0.7 6.5 3.2 3.3 1984 4.5 6.8 -2.3 5.0 4.3 0.7 1985 3.6 3.4 0.2 5.0 3.6 1.4 1986 2.8 2.7 0.1 4.1 1.9 2.2 1987 2.7 3.4 -0.7 3.3 3.7 -0.4 1988 2.7 4.5 -1.8 4.7 4.1 0.6 1989 2.0 2.5 -0.5 5.1 4.8 0.3 1990 1.8 1.0 0.8 4.5 5.4 -0.9 1991 1.2 -0.1 1.3 5.3 3.3 2.0 1992 2.7 3.7 1993 2.7 3.4 Average Absolute 1.1 1.2 Error * GNP deflator for 1975-81; CPI All Urban Consumers 1982-90 Supplemental Table Political-Economic Issues Trade Policy Over 50% 50/50 Less than 50% A. What is the probability that the GATT negotiations will be concluded successfully within the next six months? 7 36 57 1993 After 93 Neg. Fall Congr. KO B. In your judgment, the North American Free Trade agreement will be ratified by Congress 57 21.6 3.1 8.3 C. Which of the following statements best reflects your views?: "American firms" lack of competitiveness verses Japanese firms is due to ---" An overvalued dollar 40.1 Trade barriers (implicit or real) in Japan 20.7 Faulty U.S. economic policy 17.2 Noncompetitive wages in the U.S. 12.3 Ineffective U.S. management 2.6 Noncompetitive products 1.8 Other 5.3 D. Should U.S. trade policy be oriented toward-- Multilateral approaches such as the GATT negotiations 14.6 Bilateral or regional negotiations such as NAFTA 9.3 Both multilateral and bilateral approaches 65.9 Emphasis enforcement of fair trade provisions such as Section 301 which allows retaliatory tariffs in cases where unfair foreign competition is found 10.2 Aid to the Commonwealth of Independent States (formerly the USSR) A. Economic reforms in Russia and the CIS are causing market disruptions and some disillusionment within the general population. The problems allowed conservatives to affect a slowing of reforms at the April meeting of the Congress of People's Deputies. In response to this slowdown in reforms, the IMF has withheld certain assistance. How closely should the assistance to Russian and the CIS be tied to reforms: No reforms, no aid 25.3 Aid should be extended with consideration for the domestic political situation 55.9 Aid should be given for humanitarian reasons with less importance attached to reforms 18.8 Z. Relative to projected economic performance under a second Bush Administration, characterize the following under a President Clinton: Higher Lower Same Economic Growth 52.8 22.7 24.5 Government Regulation 77.6 2.6 19.8 Inflation 71.1 4.7 24.1 Budget Deficit 65.2 14.2 20.6 Trade Deficit 44.2 27.5 28.3 Dollar 20.8 51.5 27.7 Long Term Rates 68 10 22.1 Short Term Rates 63.6 10.4 26 S & P 500 32.9 45 22.1 Agree Disagree Difference AA. Deficit reduction projections under the Clinton program are primarily due to economic growth and not the net impact of Mr. Clinton's proposals. 82.1 17.9 64.2 NABE National Association of Business Economists 1992 Annual Meeting Dallas, Texas September 13-16, 1992 Economic and Policy Surveys Presented by: Joseph W. Duncan Vice President, NABE and Vice President, Corporate Economist and Chief Statistician The Dun & Bradstreet Corporation New York, New York September 14, 1992 DCT-08-1992 10:00 FROM HOUSTON STAFF OFC TO 12024566218 P.01 Houston, Texas OFFICE OF PRESIDENTIAL ADVANCE COVER PAGE TO: Jannifer Grossman FROM: David Jones TOTAL NUMBER OF PAGES: 5 DATE: (including this cover page) 10/8 TIME: 10AM MESSAGE: IF YOU HAVE ANY QUESTIONS OR PROBLENS WITH THIS TRANSMISSION PLEASE CALL: TELEPHONE NUMBER: 713/956-0808 OCT-08-1992 10:00 FROM HOUSTON STAFF OFC TO 12024566218 P.02 SENT BY:THE WHITE HOUSE :10- 7-92 ; 13:45 : 2024566218- 713 688 0173:#11 6:35 pm THE PRESIDENT is announced into Exhibition Hall, proceeds to Seat and is Seated. 6:36 pm Dinner is served. 7:15 pm THE PRESIDENT departs Exhibition Hall and proceeds to Holding Room. 7:17 pm THE PRESIDENT arrives Holding Room for Private Time. (PRIVATE TIME: 10 MINUTES) 7:27 pm THE PRESIDENT departs Holding Room and proceeds to Exhibition Hall Off-Stage Announcement Area. 7:28 pm THE PRESIDENT arrives Exhibition Hall Off-Stage Announcement Area and holds briefly. 7:30 pm A video will be shown at this time. 7:35 pm THE PRESIDENT is announced onto Stage, proceeds to Seat and is Seated. NOTE: This event is satellite linked to seven cities around the country. 7:36 pm Live shots of each up-link city are displayed. 7:38 pm Mr. Robert Mitchum, Master of Ceremonies, introduces Ms. Sandy Fatti, Singer. 7:39 pm Ms. Patti sings National Anthem (from St. Louis). Page Six OCT-08-1992 10:01 FROM HOUSTON STAFF OFC TO 12024566218 P.03 SENT BY:THE WHITE HOUSE :10- 7-92 ; 13:46 ; 2024566218- 713 688 0173:#12 7:40 pm Mr. Mitchum makes welcoming Remarks and introduces Mr. Rob Mosbacher, Chairman, Texas Victory '92. 7:42 pm Mr. Mosbacher introduces Mz. Lod Cook, Chairman, Victory 92 Dinner, Los Angeles (from Houston). 7:43 pm Mr. Cook makes brief remarks and introduces Mr. Charles Gargano, Chairman, Victory 92 Dinner, New York (from New York City). 7:44 pm Mr. Gargano makes brief remarks and introduces Mr. Bucky Bush, Chairman, Victory '92 Dinner, St. Louis (from St: Louis). 7:45 pm Mr. Bush introduces Mr. Gordon Woodrow, Chairman, Victory '92 Dinner, Philadelphia (from Philadelphia). 7:46 pm Mr. Gordon Woodrow makes brief remarks and introduces Ms. Pat Harrison, Co- Chair, Victory '92 Dinner, Washington, D.C. 7:47 pm Ms. Harrison makes brief remarks and introduces Mr. Alec Poitevint, Chairman, Victory '92 Dinner, Atlanta (from Atlanta). 7:48 pm Mr. Poitevint makes brief remarks and introduces Mr. Ted Welch, National Chairman, Victory '92 (from Atlanta). 7:49 pm Mr. Welch returns program to Mr. Mitchum (from Houston). 7:50 pm Mr. Mitchum introduces The Honorable Robert Dole, U.S. Senate, Kansas (from Washington D.C.). 7:51 pm Senator Dole makes brief remarks and introduces The Honorable Bob Michel, U.S. Representative, Illinois, 18th District. 7:55 pm Congressman Michel makes brief remarks. Page Seven OCT-08-1992 10:01 FROM HOUSTON STAFF OFC TO 12024566218 P.04 SENT BY:THE WHITE HOUSE :10- 7-92 : 13:47 ; 2024566218- 713 688 0173:#13 7:58 pm Mr. Mitchum introduces Mr. Arnold Schwarzenegger, Actor. 7:59 pm Mr. Schwarzenegger makes brief remarks (from Atlanta). 8:03 pm Film Highlights of Ford Presidency are displayed. 8:05 pm Mr. Bob Hope, Entertainer, makes brief remarks (from Los Angeles) and introduces The Honorable Gerald Ford, Former President (from Philadelphia) 8:07 pm Former President Ford makes brief remarks. 8:11 pm Ms. Mary Hart, Co-Host, Entertainment Tonight, introduces Mrs. Marilyn Quayle (from Los Angeles) 8:12 pm Mrs. Quayle makes brief remarks (from Washington D.C.). 8:16 pm Ms. Shirley Jones, Singer, introduces Mrs. Bush (from New York). 8:17 pm Mrs. Bush remarks (from New York). 8:21 pm Mr. Mitchum introduces Mr. Warren Moon, Quarterback, Houston Oilers (from Houston). 8:22 pm Mr. Moon introduces The Honorable Dan Quayle, Vice President of the United States (from Houston). 8:23 pm Vice President Quayle makes brief remarks (from St. Louis). 8:29 pm Filmed Highlights of Reagan Presidency are displayed. 8:31 pm The Honorable Fete Wilson, Governor of California, introduces The Honorable Ronald Reagan (from Los Angeles). Page Eight OCT-08-1992 10:02 FROM HOUSTON STAFF OFC TO 12024566218 P.05 SENT BY:THE WHITE HOUSE 110- 7-92 ; 13:47 ; 2024566218- 713 688 0173:#14 8:32 pm THE PRESIDENT is introduced for Remarks by The Honorable Ronald Reagan, Former President. 8:35 pm THE PRESIDENT makes Remarks. 8:45 pm and is Seated. THE PRESIDENT concludes Remarks, proceeds to Seat 8:47 pm "God Bless America" is sung by Shirley Jones (from New York City). 8:49 pm Mr. Mitchum recognizes "Receive-Only" Cities and thanks guests during music. 8:54 pm Announcer closes show. 9:00 pm THE PRESIDENT concludes participation in Victory '92 Dinner, departs Stage and boards Motorcade. 9:05 pm THE PRESIDENT departs J. W. Marriott Hotel en route Spiscopal High School Landing Zone. MOTORCADE ASSIGNMENTS: Same as on Arrival. (Drive Time: 10 Minutes) 9:15 pm Landing Zone and boards Marine One. THE PRESIDENT arrives Episcopal High School 9:20 pm THE PRESIDENT departs Episcopal High School Landing Zone en route Ellington Field. Parta Min- TOTAL P.05 10-08-92 01:43PM TO 94566218 P001/005 UNITED STATES News from John McCain * SENATE U.S. Senator Arizona TO: LARS PIERSEN FROM: MARK SALTER DATE: TIME: NUMBER OF PAGES INCLUDING COVER: 5 OFFICE NUMBER (202)224-2235 111 Russell Senate Office Building Washington, D.C. 20510 10-08-92 01:43PM TO 94566218 P002/005 Senator John McCain WASHINGTON, D.C. 20510 HOLD FOR RELEASE: CONTACT: KIRSTIN WALKER THURSDAY, AUGUST 20, 1992 (713)727-2465 SKY PAGER 8:30 P.M. (EST) (713) 748-3221 SHERATON ASTRODOME STATEMENT BY SENATOR McCAIN AT THE REPUBLICAN CONVENTION On September 2, 1944, the youngest aviator in the United States Navy had a near brush with death as his plane was hit by enemy fire over an island in the Pacific. As an eighteen year old, that pilot had left his family and the pleasures of youth to risk his life for love of country. He had put his country first -- first before his own welfare, first before his personal ambitions, first before his very life. Throughout a lifetime of service to America, George Bush has never lost the devotion to duty that led him to take his turn in a bomber's cockpit and be hurled into a terrible conflict for the sake of his country and its cause. Nor has he forgotten the sacrifices made by all Americans who served their nation in war. When Bill Clinton accepted his party's nomination, he made no mention of America's veterans or the suffering they endured on our behalf. His party's convention began with veterans parading the colors. But after that brief moment of attention, no further word was uttered for them. Perhaps, they were sent to the broom closet where the Democratic leadership of Congress was hidden. But at the end of the Gulf War, at the moment of his greatest achievement, George Bush did not ask our acclaim for himself. He gave all the credit to America's sons and daughters who were the force behind Desert Storm. Our victory in the Gulf also provided the President, and the American people an opportunity to say to the veterans of another war for whom there were no parades: welcome home, job well done. Those of us who fought in Vietnam will be forever grateful. The American people stood with the President as he resisted the violent ambitions of Saddam Hussein. The Democrats, the ones who claim to be political visionaries, were the President's only critics. Angered at being proven so utterly wrong, they now seek to re-write the history of the President's finest hour. Lacking the courage of what few convictions they have, they attack the President to hide their own mistakes. Such is the typical arrogance of liberals who, when they find themselves yet again in opposition to the people's will, always respond: "we know better than the people." When they fail to convince us, they belittle us. They dismiss the President's accomplishments abroad as irrelevant to our nation's well-being, and not worthy of debate in our elections. -1- NOT PRINTED AT GOVERNMENT EXPENSE 10-08-92 01:43PM TO 94566218 P003/005 Tell that to the veterans of Desert Storm. Does Clinton believe that the liberation of Eastern Europe, the collapse of the Soviet Union, the democratization of our own hemisphere, this global triumph of freedom have no consequences for Americans? George Bush, tested in crisis and under fire, has helped secure a world in which our children need not sleep with the fear of nuclear annihilation; in which war will not so frequently claim the best of American generations; in which the American taxpayers' resources need not be drained to defend ourselves from a hostile superpower; in which nations can share the common values of free societies, and pursue together peace and prosperity. With President Bush, we have a leader who demonstrates courage in action and leaves the false heroics to others. You cannot lead as courageously as George Bush has led us without a vision worthy of our great civilization. His vision is our vision; it is our faith in an idea, and idea which has now overcome the greatest tyrants in history. Someone once defined genius as knowing one big thing. Such is the source of America's genius. For when the Berlin Wall was breached, and communism quickly collapsed, we Americans were overjoyed but we were not entirely surprised. Because we Americans knew one big thing: we knew that walls are made of impermanent things, but the will to freedom is eternal. There is a quote by the great writer, William Faulkner, which I have always admired: "I decline to accept the end of man," he wrote "I believe that man will not merely endure; he will prevail. He is immortal, not because he alone among creatures has an inexhaustable voice, but because he has a soul, a spirit capable of compassion and sacrifice and endurance.' Today, on every continent, Faulkner's hopeful creed has been affirmed. Nearly half a billion people have emerged from communism and authoritarianiam into a new age of enlightenment. No nation has contributed more to the global success of liberty than America. And no President has served this noble cause with greater courage and wisdom than President George Bush. Permit me now to call the roll of nations which began their advance from tyranny to freedom since George Bush became the leader of the free world. Russia The Ukraine Belarus Moldova Kazakhstan Kyrgyzstan Armenia Georgia -2- 10-08-92 01:43PM TO 94566218 P004/005 Latvia Lithuania Estonia Eastern Germany Poland Hungary Czechoslovakia Romania Bulgaria Albania Slovenia Croatia Nicaragua Panama Paraguay Chile South Africa Namibia Angola Mozambique Nigeria Benin The Congo Zambia Ethiopia Kuwait Nepal Bangladesh Afghanistan Cambodia Mongolia Bill Clinton and his Party would have us believe that the Iron Curtain collapsed by accident. Tell that to the American people who have always had faith that their beliefs, values and unwavering love of freedom would someday prevail in the world. Tell that to America's veterans. They know, better than most, that the triumph of freedom in the world today is a direct consequence of the blood shed by their compatriots on battlefields too numerous to mention. And they know it is the consequence of resolute American leadership, leadership of the quality provided by George Bush and Ronald Reagan. No, it is no accident that thousands of Kuwaiti children born after February 1991 bear the name George. It is no accident that China's brave students raised a statue of liberty in Tianenman Square to signify their common cause with the glorious cause that was the American revolution. And it was no accident when a young Czech worker stood above a Prague Square, before a million of his countrymen, and read with simple dignity a manifesto; a manifesto that declared a new day for the peoples of Eastern Europe. But he began that new day with borrowed words, when, trembling with emotion, he proclaimed: -3- 10-08-92 01:43PM TO 94566218 P005/005 "We hold these truths to be self-evident. That all men are created equal and endowed by their Creator with certain inalienable rights' among these, life, " liberty and the pursuit of happiness. -4-