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Prime Minister Gonzalez [Spain] Departure 10/19/89 [OA 8748]
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Prime Minister Gonzalez [Spain] Departure 10/19/89 [OA 8748]
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Records of the White House Office of Speechwriting (George H. W. Bush Administration)
Mark Davis Subject Files
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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
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Davis, Mark, Files
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Subject File, 1989-1991
OA/ID Number:
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13871-009
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Prime Minister Gonzalez [Spain] Departure, 10/19/89
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19
2
6
4
GONZALEZ DEPARTURE / EAST ROOM
OcT. 19, 1989 / 12:30 P.M.
IT IS A PLEASURE TO HAVE PRIME MINISTER GONZALEZ
AND THE SPANISH DELEGATION AS OUR GUESTS IN THE UNITED
STATES. OUR DISCUSSIONS AT THE NATO SUMMIT IN MAY WERE
AN EXCELLENT START TO A DIALOGUE WE HAVE CONTINUED IN
WASHINGTON. As BEFORE, OUR TALKS HAVE BEEN FRIENDLY
AND CONSTRUCTIVE -- ANOTHER SIGN THAT OUR BILATERAL
RELATIONS -- OUR PARTNERSHIP -- IS HEALTHY AND GROWING
STRONGER.
- 2 -
WE DISCUSSED, EXTENSIVELY, THE WAYS IN WHICH THE
WEST CAN BEST SUPPORT THE HISTORIC REFORMS TRANSFORMING
EASTERN EUROPE, ESPECIALLY IN POLAND AND HUNGARY, AND
OUR HOPE THAT THESE REFORMS WILL LEAD TO A EUROPE WHOLE
AND FREE.
I INFORMED PRIME MINISTER GONZALEZ OF THE STEPS THE
UNITED STATES HAS TAKEN TO SUPPORT THIS ECONOMIC REFORM
AND DEMOCRATIC CHANGE IN POLAND AND HUNGARY.
- 3 -
I TOLD HIM ABOUT MY REQUEST THAT CONGRESS APPROVE $200
MILLION IN ECONOMIC STABILIZATION GRANTS TO ASSIST
POLAND IN IMPLEMENTING ITS BOLD NEW REFORM PROGRAM --
THE U.S. CONTRIBUTION To POLAND'S $1 BILLION REQUEST.
I HOPE THAT ALL OF THE MAJOR INDUSTRIALIZED DEMOCRACIES
WILL ALSO CONTRIBUTE TO THIS REQUEST.
- 4 -
I ALSO EXPLAINED THAT THE UNITED STATES WILL SOON
BE EXTENDING MOST FAVORED NATION STATUS TO HUNGARY ON A
CONTINUING BASIS -- MAKING IT THE FIRST EASTERN
EUROPEAN NATION TO EVER RECEIVE SUCH TREATMENT. THIS
WILL (STRONGLY ENCOURAGE TRADE AND INVESTMENT IN
HUNGARY.
- 5 -
PRIME MINISTER GONZALEZ AND I AGREED THAT THE
FUTURES OF POLAND AND HUNGARY DEPEND ON SUSTAINED
WESTERN ACTION, COORDINATED WITH THE I.M.F. AND THE
WORLD BANK AS PART OF A LONG-TERM ECONOMIC RECOVERY
PROGRAM.
- 6 -
WE DISCUSSED THE IMPORTANT PROGRESS MADE BY THE 24-
NATION "GROUP FOR ECONOMIC ASSISTANCE TO POLAND AND
HUNGARY," WHICH HAS ALREADY MET THREE TIMES UNDER THE
CHAIRMANSHIP OF THE EC COMMISSION, AND HAS ENCOURAGED
THE COMMITMENT OF HUNDREDS OF MILLIONS OF DOLLARS IN
NEW ASSISTANCE TO BOTH COUNTRIES.
- 7 -
WE ALSO AGREED THAT SPAIN'S SUCCESSFUL TRANSITION TO A
STRONG AND FLOURISHING DEMOCRACY MAKES IT A POWERFUL
MODEL FOR EASTERN EUROPEAN COUNTRIES NOW ATTEMPTING
SIMILAR TRANSFORMATIONS.
WE ALSO REVIEWED WAYS IN WHICH WE CAN HELP SUSTAIN
THE GROWTH OF DEMOCRACY IN LATIN AMERICA -- AN AREA OF
TRADITIONAL CONCERN TO BOTH OUR NATIONS.
- 8 -
AND WE EXCHANGED VIEWS ON THE SERIOUS INTERNATIONAL
CHALLENGE THE DRUG MENACE REPRESENTS To CONSUMER AND
PRODUCER NATIONS ALIKE. AND WE AGREED ON THE NEED To
GIVE PRESIDENT BARCO AND THE BRAVE PEOPLE OF COLOMBIA
OUR FULL BACKING IN THEIR STRUGGLE AGAINST
NARCO-TERRORISTS.
OUR TALKS ALSO INCLUDED PROGRESS IN ARMS-CONTROL
NEGOTIATIONS, WHILE UNDERSCORING THE NEED TO KEEP OUR
MUTUAL NATO DEFENSES STRONG.
- 9 -
THROUGHOUT OUR DISCUSSIONS, THERE WAS A SHARED
BELIEF THAT SPAIN IS EMERGING WITH A NEW VITALITY, NOT
JUST IN EUROPE, BUT ON THE WORLD SCENE. IN SUPPORTING
DEMOCRATIC CHANGE IN EASTERN EUROPE, LATIN AMERICA AND
ELSEWHERE, I BELIEVE SPAIN CAN PLAY A UNIQUE ROLE, FOR
SPAIN PROVIDES THE WORLD WITH A VERY SPECIAL EXAMPLE.
- 10 -
PRIME MINISTER GONZALEZ, YOU HAVE SAID THAT YOUR
NATION IS BOTH A VERY OLD COUNTRY, AND A VERY YOUNG
COUNTRY -- AN AUTHORITARIAN GOVERNMENT REBORN AS A
CONSTITUTIONAL DEMOCRACY; A SHELTERED, STATE-DOMINATED
ECONOMY NOW REORIENTED To THE MARKET, AND PROSPERING.
IT IS NO EXAGGERATION TO SAY THAT SPAIN TODAY IS LIVING
A RENAISSANCE OF LIBERTY, PROSPERITY AND CULTURE.
- 11 -
IT NOW SEEMS THAT THE ROLE OF SPAIN, AS THE MOTHER
OF so MANY NATIONS, PROVIDES A MODEL OF POLITICAL AND
ECONOMIC REFORM -- A MOVE AWAY FROM THE DEAD HAND OF
STATE CONTROL -- TOWARD GREATER FREEDOM, OPPORTUNITY
AND ADVANCEMENT.
PRIME MINISTER GONZALEZ, I COMMEND YOU FOR YOUR
IDEALISM. I VALUE YOUR PARTNERSHIP.
- 12 -
MISTER PRIME MINISTER, THANK YOU FOR YOUR VISIT To
THESE SHORES AND MAY YOU HAVE A SAFE JOURNEY HOME.
#
#
#
N.Y. TIMES 09-02-89
Gonzalez Departure
Spanish Leader Sets
Election for October
And Says He'll Run
173
Special to The New York Times
MADRID, Sept. 1 - Prime Minister
Felipe González today called elections
for Oct. 29 and said he would seek a
third consecutive parliamentary man-
date.
The announcement ended weeks of
speculation. Elections were not due
until June 1990. They will be the fifth
democratic elections in Spain since the
death of Franco in 1975.
At the news conference after the
weekly Cabinet meeting, the 47-year-
old Mr. González said his decision was
based primarily on the need to prepare
JFK quote
Spain for the single European market
at the end of 1992.
The years 1990, 1991 and 1992 are
important challenges to Spanish soci-
ety," he said. "The Government that
emerges from the will of the people will
have the chance to face that prospect
with renewed legitimacy."
Economic issues will probably figure
prominently in the campaign. Analysts
said the prospect that Mr. González
might be forced to impose austerity
measures this fall, including a tax in-
crease, had led him to first call the
elections.
Labor Opposition
His monetary policies have already
prompted fierce opposition from labor,
culminating in a hugely successful gen-
eral strike last December.
Another factor that may have
prompted the Prime Minister to call
elections is the end of state monopoly
over television and the advent of pri-
vate television, due to go on the air by
the end of March. The opposition has
repeatedly accused the Government of
abusing its position and granting itself
greater air time than its opponents
during electoral campaigns.
The leading opposition party, the
conservative Popular Alliance, headed
by Manuel Fraga, has chosen José
Maria Aznar, a 36-year-old regional of-
ficial, to lead it into the elections.
With the opposition generally in dis-
array and unlikely to present an effec-
tive challenge, the Socialists hope to re-
peat their victories in the last two gen-
eral elections of 1982 and 1986.
WASH. 08-27-89
South of the Border:
A New 'Spanish Miracle?
Shedding 173/172/182 the Culture of Underdevelopment
By Lawrence E. Harrison
I
T'S ELECTION season again in Latin
1960, 42 percent of Spain's labor force
America, and an emerging pattern sug-
worked in agriculture, in 1980, 17 percent. In
gests that the Spanish "miracle" may pro-
1962, the value of Spain's manufactured ex-
foundly influence the outcomes. Openness-to
ports totaled $205 million; in 1986, almost
the ideas and institutions of the West, to world
$20 billion.
markets, to foreign investment-was the key
Economic development had an important
to progress for Spain. Now, Latin America
modernizing effect on Spanish values and at-
may be reaching for the same key after dec-
titudes, particularly in terms of the massive
ades of self-absorption.
migration from rural to urban areas. But the
Spain in 1950 was an underdeveloped coun-
try. Its per-capita income was lower than six of
flood of tourists, businessmen, politicians, jour-
its former colonies, including Cuba. It's illit-
nalists and intellectuals from Western Europe
eracy rate was 18 percent, higher than Argen-
and the United States also had a profound
tina and Uruguay. Life expectancy was 60
mind-opening effect, as did the experience of
those Spaniards who traveled abroad and those
years, 10 years less than the European aver-
who emigrated for temporary employment.
age and lower than Argentina and Uruguay.
Today, studies show that Spanish values and
And democracy was as elusive for Spain as for
attitudes are not significantly different from
its former colonies. The Franco dictatorship
those in other Western European countries.
was 11 years old and firmly in the saddle.
Latin America has thus far hesitated to
therry
Today, Spain's per-capita income approx-
make a similar commitment to openness. The
imates $5,000, far ahead of all its former col-
dominant economic theory remains that of the
onies. Its literacy rate is about 95 percent, life
late Argentine economist Raul Prebisch, who
expectancy 76 years. And Spain's swift trans-
argued that the region's underdevelopment
formation into a democracy following Franco's
was chiefly the consequence of its "depen-
death in 1975 may now be irreversible. For
dence" on rich countries, especially the United
almost 500 years, Spain isolated itself behind
States. His remedy was import-substitution
the Pyrenees from the Enlightenment, the
and state socialism-two dead-end ideas that
Industrial Revolution and the democratization
remain popular in Latin America. Similarly,
of Western Europe. In a few short decades,
Spain has leaped into the West European po-
Latin America has thus far failed to forge a
litical, economic and social mainstream.
consensus in favor of political pluralism. Fidel
Traditional Hispanic culture, and the insti-
Castro's authoritarian, utopian crusade, driven
in part by virulent anti-Americanism, rever-
Lawrence Harrison, the author of
berates in Sandinista Nicaragua, the Latin
"Underdevelopment Is a State of Mind," is at
American left in general and the liberation-the-
work on a book about culture and progress.
ology wing of the Catholic Church.
But a number of Latin American politicians
are getting the message of la madre patric,
tutions that both reflect and reinforce it, have
with which Latin America has long preserved a
persisted in Spain's former colonies up to to-
special relationship. Argentina has just inau-
day; an exaggerated individualism captured in
gurated Carlos Saul Menem, a Peronist who,
the Spanish self-caricature, "Que viva yo!
astonishingly, now sounds like a University of
("Long Live I"); mistrust of and even hostility
Chicago graduate. Bolivia has just installed
toward the broader society beyond the family;
Jaime Paz Zamora, a former revolutionary left-
an elastic ethical system built on what Max
ist who has committed himself to free market
Weber called "the Catholic cycle of sin, repen-
policies. In Brazil, a former colony of Portugal,
tance, atonement, release and renewed sin";
an unknown named Fernando Collor de Mello,
and an anti-capitalist, anti-business, anti-work
who advocates privatization of state enter-
bias linked to a zero-sum world view-wealth
is finite, and what I gain has to be at your ex-
prises, has taken a commanding lead over his
closest rival, a socialist. In Peru, novelist Ma-
Llosa
pense.
no Vargas Llosa, a former admirer of Castro
T
here is thus a striking similarity be-
who now wholeheartedly endorses democratic
tween the history of la madre patria-
capitalism, is well ahead of his closest rival, a
the motherland-and its former colo-
Marxist.
nies. Both histories are marked by authoritar-
Mexico has moved impressively to open its
ianism, militarism, political polarization and
economy in recent years, and the incumbent
fragmentation, and violence; highly inequitable
president, Carlos Salinas de Gortari, has taken
distribution of wealth, land and opportunity;
several giant steps away from the one-party
absence of institutions of due process; and
dictatorship that has governed Mexico for
slow economic growth, prinicipally the result
most of this century. Chile has also opened up
of limited entrepreneurial activity.
its economy, which is currently among the
That old pattern began to change in Spain in
fastest growing in the world.
the late '50s, when Franco shifted from an
What an exquisite irony it will be if Spain,
inward-looking to an outward-looking econom-
whose traditional culture and institutions are
ic policy. From 1961 to 1973, the Spanish
at the root of Latin America's problems, helps
economy experienced a revolution. Growth
to lead its former colonies to modern demo-
averaged more than 7 percent annually. Indus-
cratic capitalism.
try grew by more than 9 percent annually. In
TIMES: 08-20-89
World's Fair
A New World
In Andalusia
M3
Probably nowhere, however, does
Expo 92 represent the future more than
By ALAN RIDING
in Seville and the province of Andalu-
Special to The New York Times
sia, which are now the beneficiaries of
SEVILLE, Spain - Restoration of
huge investments made to insure that a
the 14th-century Carthusian monas-
backward region is not left behind.
tery where Columbus planned his trip
"One of my Government's underly-
westward in 1492 is one sign that Spain
ing objectives is to create optimal
has not entirely forgotten why it is
conditions to transform Seville and An-
holding a world's fair in 1992.
dalusia into an economic center for the
Construction of a replica of the port
whole area of the western Mediterra-
of Seville five centuries ago is also
nean," Manuel Olivencia, the Commis-
going ahead at the site of Expo 92, a
sioner General for Expo 92, said.
further reminder of this city's role as
Modernizing of Transportation
gateway to the New World in the dec-
ades that followed Columbus's journey.
Some $800 million is being spent on
Yet almost three years before the
preparing the site of the world's fair,
fair's opening, Spain seems less inter-
but $7 billion more is budgeted for mod-
ested in dwelling on its past as discov-
ernizing Seville's road, rail, air and
erer and conqueror of the Americas
port infrastructure and for building
than it is in using the occasion to cele-
new highways and railroads connect-
brate its emergence as a democracy
ing this region with the rest of Spain.
fully integrated in Europe.
Even outside the 538-acre Cartuja Is-
"Expo had its origins in the com-
land on the Guadalquivir River where
memoration of the 500th anniversary,"
the fair's facilities are being hurriedly
noted Jacinto Pellón, who is in charge
built, new road and railroad construc-
of construction work at Expo 92, "but it
tion has already lowered the region's
is a universal exhibition that is now
unemployment, and last year it fed a
even more of a European Expo."
6.5 percent growth rate, two points
higher than Spain as a whole.
Design of the Fair
Today, some 200,000 landless peas-
The switch in emphasis is apparent
ants still travel as far as away as
in the design of the fair. Alone among
southern France to pick fruit and
the 100 nations expected to be repre-
vegetables in the summer months.
sented here, for example, the 12 Euro-
With 17.6 percent of Spain's total popu-
pean Community members have now
lation, Andalusia's 6.8 million inhabit-
been assigned space to build their pa-
ants also account for 24 percent of
villions in a special area known as the
unemployment but only 12 percent of
Avenida de Europa.
the country's gross domestic product.
But the new focus also reflects
A Motor for Andalusia
changing attitudes in Spain. When
Expo 92 was proposed a decade ago, a
"Expo is covering Spain's historical
country emerging from almost 40
debt to Andalusia," Jaime Montaner,
years of dictatorship under Gen. Fran-
head of public works, explained. "All
cisco Franco saw the fifth centenary of
investment is essential, but we'd have
1492 as an opportunity to reassert its
to wait to 20 years without Expo.
leadership of the Hispanic world.
Expo is the motor that will enable the
But having joined the North Atlantic
economy of Andalusia to take off."
Treaty Organization in 1981 and the
Looking beyond 1992, the organizers
community in 1986, Spain has since dis-
of Expo have designed the fair so that
covered a new European vocation. And
it can serve, in Mr. Aparicio's words,
for many Spaniards, 1992 now repre-
"as a future city and not just as an ex-
sents the creation of a single European
hibition area." The current plan is for
market and its challenges to Spain.
the site to become a center for techno-
Further, the coincidence of presti-
logical research.
gious events here in 1992 - not only the
Not everyone, though, is happy here.
world's fair in Seville, but also the
"There are some conservatives in An-
Summer Olympics in Barcelona and
dalusia who worry that Expo will dis-
Madrid's designation as European
rupt a traditional way of life," Mr.
capital of culture - is seen not as a
Montaner said. "Well, they're right.
tribute to Columbus but as recognition
Things will change and the 19th-cen-
of Spain's respectability.
tury squires will lose their privileges."
In a sense, though, with native Sevil-
'More Than Bulls and Flamenco'
lanos like Felipe González and Alfonso
"Osaka 1970 served to show Japan as
Guerra already running the Govern-
a developed and technologically ad-
ment in Madrid as Prime Minister and
vanded country," Ginés Aparicio, the
Deputy Prime Minister, respectively,
chief engineer at Expo 92, said, recall-
the flood of investment also aims to
ing the most recently held universal ex-
preserve the status quo in this Govern-
hibition. "Spain wants Expo 92 to show
ment party stronghold.
it as a modern country that is more
Expo 92 was planned before the So-
a mew engine
than just bulls and flamenco."
cialists first won election in 1982 but,
Even Expo's theme, "The Age of Dis-
officials here concede, Mr. González
covery," has assumed a different
would be a poor Andalusian and an
meaning of late, no longer refering to
unusual politician - if he missed this
Spain's own Golden Age when its
chance to help his home turf. Local So-
American empire stretched from Cali-
cialists only hope they will still be in of-
fornia to Patagonia, but rather to the
fice in 1992 to harvest the rewards.
contemporary discoveries and innova-
tions that are still shaping the future.
N.Y. TIMES 08-09-89
Spain's Leader Weighing Plans for Elections
By ALAN RIDING
173
nouncement may be made when the
told reporters before heading on vaca-
Special to The New York Times
Council of Ministers meets on Aug. 25.
tion. "I'm going to reflect a little more
ADRID, Aug. 3 Encouraged by
But they added that Mr. González may
to see what is most convenient.
his party's strong showing in recent
still choose a date early next year to
The key variable, political experts
elections for the European Parliament,
coincide with regional elections in Gali-
here say, appears to be the economy,
Prime Minister Felipe González is de-
cia, Madrid and Andalusia.
which is enjoying annual growth fates
baring whether to call general elections
Until about two weeks ago, official
of 4 to 5 percent but which is also in-
before June 1990, when they are due.
spokesmen were insisting that the Gov-
With opposition parties on both left
creasingly in need of tough fiscal meas-
ernment would serve out its full term,
ures if inflation is not to surge out of
and right in a state of disarray, Mr.
but it was Mr. González himself who
control.
Gonzalez is said to be confident that his
touched off the speculation about early
Socialist Party can win a third succes-
The Government's reasoning is that
elections when he noted unexpectedly
sive clear majority in Congress if elec-
belt-tightening measures, including
that he had not yet made up his mind.
tions are held in either October or
sharp tax increases, can be postponed
"The main criterion for me will be
January.
if the elections are brought forward,
the stability of the Government and not
Government officials said if elec-
thus enabling the Socialist Workers'
that of calling early elections as a func-
tions are to be held this fall, an an-
Party to take credit for bringing down
tion of an electoral opportunity," he
unemployment and feeding an unparal-
leled boom in consumer spending.
But officials concede that it will be
difficult to hold off an austerity pack-
age until after next June without risk-
ing serious damage to both the domes-
tic economy and foreign confidence in
the Government's fiscal management.
Since Spain decided last month to
add the peseta to the currency man-
agement scheme known as the Euro-
pean Monetary System, for example,
the Government has already faced
pressure from its European partners
to bring inflation here down to average
European Community levels.
The political appeal of early elec-
tions was also underlined by the out-
come of the elections in June for the
European Parliament, in which the
Government party won 39.5 percent of
the vote, enough to increase its ma-
jority in both houses of Congress if the
results were repeated in general elec-
tions.
This showing was particularly signif-
icant since a general strike last Dec. 14
suggested growing unhappiness among
Spanish workers that the economic
boom was benefiting the rich more
than the poor. But despite sharp criti-
cism of the Government by the power-
ful General Labor Union, voters did not
punish the Socialists
At the same time, with their eyes on
the general elections, two parties to the
right of the Government - the Popular
Party, led by Manuel Fraga Iribarne,
and the Social Democratic Center,
headed by former Prime Minister
Adolfo Suátez - joined forces for the
first time in the European elections,
but they nonetheless fared poorly.
Now, with Mr. Fraga planning to run
for president of the department of Gali-
cia and Mr. Suárez seemingly unable to
organize his party into a coherent polit-
ical force, there appears to be no single
opposition leader capable of challeng-
ing Mr. González.
Having won election in 1982 and re-
election in 1986, a new success at the
polls could extend Mr. González's term
to 11 years, placing him alongside
Prime Minister Margaret Thatcher
and President François Mitterrand,
Europe's longest ruling leaders.
After the general strike last Decem-
ber, the most successful here since the
1930's, Mr. González was reportedly
thinking of stepping down, prompting
intense speculation as to his likely suc-
cessor. But since the European elec-
tions, the main debate has been over
which ministers will accompany him in
his third term in office.
Spain and USSR, a new friendship
173/178
By Susan B. Chodakewitz
rose to power. His "new thinking" has wrought
dramatic changes in how the Soviets view questions of
international affairs and their role in it. Soviet leaders
and Louis J. Levy
have redefined the traditional Soviet concept of
international security to focus less on purely military
While in Moscow for Konstantin Chernenko's
issues and more on political and economic security.
funeral, Spanish Prime Minster Felipe Gonzalez met
The Soviets are critically concerned about the
with Mikhail Gorbachev. Since then, there has been a
implications of an economically and politically unified
steady stream of high-level official visits between Spain
Europe envisioned for 1992 and have stepped up their
and the Soviet Union, most notably Foreign Minister
efforts to conclude a trade and cooperation agreement
Eduard Shevardnadze's January, 1988, visit to Madrid
with the EEC. Spanish Foreign Minister Fernandez-
and Spanish Foreign Minister Francisco Fernandez-
Ordonez is now president of the EEC. The Soviets
Ordonez's 1989 trip to Moscow.
perceive certain opportunities now that may evaporate
These diplomatic exchanges have been
when Ordonez completes his term.
complemented by a well-orchestrated series of
Spain has emerged from Franco's long shadow and
expanded and enhanced substantive political
become more conscious of its unique position in
discussions as well as cultural and economic ties.
Europe and the world. It has become more
Together they reflect a critical turning point in the
independent in its foreign policy, managing to distance
evolution of Soviet-Spanish relations.
itself somewhat from the U.S. Especially important are
Some in the West, both in Washington and Europe,
Madrid's ongoing attempts to emphasize the
are struggling to understand the basis and significance
"European" component of the Western alliance.
of these developments. The immediate catalysts behind
Madrid also is pursuing a more independent and
Moscow and Madrid's newly discovered mutual
flexible course of economic and political relations with
attraction appear to be Spain's emerging roles in the
countries of Eastern Europe.
European Economic Community and NATO, as well
Finally, to a degree perhaps greater than any other
as Spain's growing assertiveness vis-a-vis Washington-
member of the EEC, Spain is eagerly awaiting the
evidenced by Madrid's decision to remove a U.S. F-16
1992 unification to stimulate economic growth and
wing from its territory. This is set against Moscow's
demonstrate this new-found independence. Spanish
more active and diversified foreign policy. But from a
leaders recognize that 1992 will focus international
historical perspective, the vitalization of Soviet-Spanish
attention still further on Spain as it hosts the
relations is almost inevitable.
Olympics, the World Fair and the quincentennial
Spain never shared the common West European
anniversary of Columbus' voyage.
(and American) perception of the "Soviet threat,"
Spain's strategic proximity to Africa and shipping
mainly because for years it never had democratic
lanes in the Mediterranean and Atlantic underscores
institutions to defend. In addition, Madrid's espousal
the importance of continued NATO-Spanish military
of tercermundismo-a solidarity with the developing
cooperation. Given Spain's role in NATO's southern
nations, especially those in Latin America-made
flank strategy, Moscow will attempt to influence it,
Spanish leaders more than a little suspicious of what
thus making Soviet-Spanish relations an important
they perceived as the United States' "interventionist"
security issue for the West.
philosophy of international relations.
On another level, Soviet and Spanish foreign policies
For its part, Moscow has always felt a special affinity
over the last five years have mirrored each other, as
with Spain because of its role in the Spanish Civil
both countries turn outward to diversify their foreign
War. Striking parallels in Spanish and Russian history
relations and prepare for a changing international
give both states, situated as they are on either end of
environment. From Moscow's perspective, this means,
Europe, historical, political and cultural perspectives
among other things, adjusting to a unified Europe.
that in many ways overlap. Considering these factors,
For Madrid, it means espousing a more active
it should come as no suprise that Moscow is reaching
international role, especially as a mediator for regional
out to Madrid as a potentially major player in Europe,
conflicts. It also means using its new clout to influence
and that Madrid is welcoming the embrace.
events and decisions in Europe. Prime Minister
To be sure, Moscow was not always as interested in
Gonzalez's sophisticated diplomacy in playing off
Spain. In the late 1970s and early '80s, Soviet foreign
Spanish entrance into the EEC and NATO
policy focused, in the West European context, on arms
demonstrates this capability.
control and, by extension, Central Europe.
In that the Soviets are according Spain deserved
Furthermore, Soviet thinking toward Spain rested
respect and priority-as illustrated by Gorbachev's
almost entirely on relations between their respective
recently announced plan to visit to Spain in early
Communist parties and/or on domestic Spanish leftist
1990-Madrid is receiving the recognition it seeks.
politics. For its part, in the immediate post-Franco
The Soviets, in turn, are gaining access to another
era, Spain was consumed with domestic affairs and its
NATO ally and member of the EEC.
foreign policy was almost exclusively oriented to the
U.S. policymakers must acknowledge not only
West, and to Washington in particular.
changes in the theory and practice of Soviet foreign
This all began to change shortly before Gorbachev
policy, but also Spain's new and unique place on the
political and economic landscape of Western Europe.
Susan B. Chodakewitz and Louis J. Levy are analysts
Moreover, the challenge is to respond in a way
in Booz, Allen & Hamilton Inc.'s Russian Studies
commensurate with Madrid's stature rather than out of
Center, Bethesda, Md.
fear of an enhanced Soviet influence.
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8TH DOCUMENT of Level 1 printed in FULL format.
Public Papers of the Presidents
Digest of Other White House Announcements
The following list includes the President's public schedule
and other items of general interest announced by the Office
of the Press Secretary and not included elsewhere in this
issue.
1985 Pub. Papers 624
May 10, 1985
LENGTH: 636 words
May 1
The President arrived at Cologne/Bonn airport and proceeded to Schloss
Gymnich, his residence during his stay in the Federal Republic of Germany.
May 2
The President met in the morning at Schloss Gymnich with administration
officials and members of the White House staff.
The President went to Villa Hammerschmidt, the official residence of West
German President Richard von Weizsacker, for the formal arrival ceremony for his
state visit. President Reagan then met with President Weizsacker at Vílla
Hammerschmidt and later with Chancellor Helmut Kohl at the Federal Chancellery.
In the afternoon, the President attended a plenary session with summit
leaders at the Federal Chancellery. He then went to the residence of William M.
Woessner, the Deputy Chief of the U.S. Mission, for bilateral meetings with
Prime Minister Yasuhiro Nakasone of Japan and President Francois Mitterrand of
France.
In the evening, the President met at Schloss Gymnich with Prime Minister
Margaret Thatcher of the United Kingdom. Later, he attended a reception hosted
by Chancellor Kohl at Schloss Augustusburg and a dinner for summit leaders at
Schloss Falkenlust. He then returned to Schloss Gymnich.
May 3
The President met in the morning at Schloss Gymnich with administration
officials and members of the White House staff.
The President began the first full day of meetings of the Bonn Economic
Summit by attending a morning working session with summit leaders at Palais
Schaumburg. After a working luncheon at Palais Schaumburg, he participated in an
afternoon plenary session with summit leaders at the Federal Chancellery.
In the evening, the President attended a dinner at Palais Schaumburg hosted
by Chancellor Kohl for summit leaders. He then returned to Schloss Gymnich.
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1985 Pub. Papers 624
May 4
The President met in the morning at Schloss Gymnich with administration
officials and members of the White House staff.
The President went to the Federal Chancellery for a morning plenary session
in the NATO Room, followed by a plenary luncheon.
In the evening, the President attended a dinner at Villa Hammerschmidt hosted
by President von Weizsacker for summit leaders. He then returned to Schloss
Gymnich.
May 6
In the afternoon, upon arriving at Madrid, Spain, the President attended the
formal arrival ceremony at Pardo Palace, his residence during his stay in Spain.
In the evening, the President received a courtesy call from Spanish Prime
Minister Marquez Felipe Gonzalez at Pardo Palace. Later, the President and
Mrs. Reagan dined with King Juan Carlos and Queen Sofia at Zarzuela Palace,
their Majesties' residence. The President and Mrs. Reagan then returned to Pardo
Palace.
May 7
In the afternoon, the President met with Manuel Fraga, leader of the
opposition party, in the Tapestry Room at Pardo Palace.
May 8
After a brief arrival ceremony at Strasbourg airport, the President proceeded
to Chateau des Rohan, where he attended a luncheon hosted by Pierre Pflimlin,
President of the European Parliament.
In the evening, following his arrival in Lisbon, Portugal, the President
attended the official welcoming ceremony at Jeronimos Monastery, where he also
placed a wreath at the tomb of Luis Camoes, a Portuguese poet.
Later, the President met privately with President Antonio dos Santos Ramalho
Eanes of Portugal and then held an expanded meeting with U.S. and Portuguese
officials at Queluz Palace. He remained at the Palace overnight.
May 9
In the afternoon, the President met with Dr. Lucas Pires, president of the
Centro Democratico Social Party, at Queluz Palace.
May 10
In the morning, the President reviewed an exhibition of Lusitanian horses in
the garden at Queluz Palace.
Ihe President then returned to Washington, DC, from his 10-day trip to
Europe.
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9TH DOCUMENT of Level 1 printed in FULL format.
Public Papers of the Presidents
Madid, Spain
Remarks Following a Meeting With Prime Minister Felipe
Gonzalez Marquez.
1985 Pub. Papers 600
May 7, 1985
LENGTH: 358 words
I want to thank President Gonzalez for our very productive discussions today
and for his wonderful Spanish hospitality.
I also want to say how at home a Californian like me feels in these lovely
surroundings. We owe 50 much to the history and the heritage of Spain.
The United States and Spain have long been friends and close allies. Our
discussions today demonstrated a broad degree of agreement on the kind of world
that our two democracies want to help bring about. Where there were differences,
I think we both profited from the particular perspectives that we bring to the
challenges we face.
Spain is making an important contribution to Western security through NATO
and our bilateral agreement. We appreciate Spain's support for our efforts to
negotiate deep reductions in offensive nuclear arsenals. And we agree on the
pressing need to strengthen peace and security in Europe and throughout the
world.
I expressed my congratulations to President Gonzalez for the successful
conclusion of the negotiations on Spain's entry into the European Community. I
know that Spain was worked hard for years to achieve this goal, and we have
supported you throughout.
We noted that further efforts are needed to strengthen peace, democracy, and
ecoomic progress in Central and South America. And I know this is a region of
special interest to Spain as it is to the United States.
And I also expressed to the President, and want to emphasize again to the
Spanish people, how deeply the people of the United States admire what Spain has
accomplished in one short decade.
Mr. President, Spain's example has made spirits soar everywhere that people
stnve for democracy. Many nations, especially in Latin America, are following
your lead.
So, it's an honor to be here, to benefit from your views and to give you and
all Spaniards the very deepest wishes of the people of the United States for
continued success.
Note: The President spoke at 3:18 p.m. to reporters assembled in the garden
at Moncloa Palace. Earlier, the President and the Prime Minister met privately
and then attended an expanded meeting and a working luncheon at the Palace.
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10TH DOCUMENT of Level 1 printed in FULL format.
Public Papers of the Presidents
Foreign and Defense Issues
Responses to Questions Submitted by El Pais of Spain.
1985 Pub. Papers 580
April 29, 1985
LENGTH: 816 words
Spanish Membership in NATO
Q. Soon you will be officially visiting Spain, where a large part of public
opinion still thinks that the country should not be a part of NATO. How
important for your administration, which already has secured continued access to
military bases in Spain, is the permanence of Spain in NATO?
The President. For 37 years there has been a consensus in the United States
and in Western Europe that a strong NATO is the best way to prevent another war
from ever starting. In the United States NATO enjoys the strong support of both
our political parties. And the concept of collective security, which NATO 50
ably represents, is a belief that also transcends the lines of nearly all
political parties in Europe.
Spain strengthens NATO, which in turn means that Spain's membership helps
strengthen peace. But NATO is a free alliance of free nations, and whether Spain
wishes to remain a member of NATO is clearly for Spain to decide.
Q. Is the announced referendum to decide on Spanish membership in NATO a
point of concern in the relations between the two countries, and during your
visit to Madrid will you try to get assurances from the Spanish Government about
the permanence of Spain in the Atlantic alliance?
The President. I will be telling the people of Spain and my government hosts
that the United States welcomes Spain as a NATO member and sees benefits to
Spain, Europe, and the world from its membership in this peaceful alliance. But
as I said in my previous answer, NATO is a free alliance. It is clearly up to
Spain to decide whether it wishes to remain a member.
U.S. Military Bases in Spain
Q. Will your administration accept a reduction of the United States military
presence in Spain or the closure of some bases in our country, as has been
suggested by the Spanish Prime Minister, Mr. Felipe Gonzalez, as a kind of
political token to pay for maintaining Spain in NATO?
The President. The U.S. presence in Spain is an important element of the U.S.
contribution to NATO and Western security. Granting access to U.S. forces is a
contribution on the part of Spain.
The U.S. and Spain work together closely in the military field in accordance
with the 1982 agreement on friendship, defense, and cooperation; we will
continue to do so. The only plans we have are to do our best to carry out all
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1985 Pub. Papers 580
our obligations under the terms of that agreement.
U.S. Deployment of Nuclear Weapons in Spain
Q. Important sectors of Spanish public opinion were worried when they heard
recently that the United States had contingency plans to store nuclear warheads
in Spanish territory. May your government guarantee that in the future nuclear
weapons won't be deployed or stored in Spain without the consent of the Spanish
people and that our country is not a part of the actual, American contingency
plans?
The President. The 1982 agreement on friendship, defense, and cooperation
between our two countries specifically states that no nuclear weapons can be
stored or installed in Spain without the agreement of the Spanish Government.
The United States honors its obligations under that agreement fully and
completely and will continue to do so.
Nicaragua
Q. As you know, the crisis in Central America is perceived in a quite
different way in Europe and in the U.S. This perception is even more different
in Spain. You have just announced a new proposal for peace in Nicaragua. Will
you ask for the support of Mr. Gonzalez for your plan, and do you think that
Spain may help in some practical way to find a political solution to the crisis
in the region!
The President. Sometimes people tend to overemphasize areas where there may
be different points of view and overlook the much broader areas of agreement. In
Central America, the U.S. and Spain both would like to see personal liberty,
democratic governments, economic progress, and regional peace and stability.
One of the most important contributions Spain makes in fostering democracy is
the example it has set over the past decade. Let me note, by the way, that when
I took office 4 years ago only one of the five countries in Central America was
a democracy. Now there are three democracies and one country well on the way
back to democratic government.
In Nicaragua, we want to facilitate an internal dialog between the Communist
Sandinistas and the democratic opposition. This would be an important adjunct to
the efforts of the Contadora countries to find a regional solution, which we
support.
Freedom works in Central America, as it does in other parts of the world. We
want the Sandinistas to give their people freedom and their neighbors peace. I
don't think that's too much to ask.
Note: As printed above, this item follows the text of the questions and
answers which was released by the Office of the Press Secretary on May 5.
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16TH DOCUMENT of Level 1 printed in FULL format.
Public Papers of the Presidents
Meeting With President Felipe Gonzalez Marquez of Spain
Remarks Following the Meeting.
19 Weekly Comp. Pres. Doc. 903
June 21, 1983
LENGTH: 745 words
President Reagan. I would like to take this opportunity to underscore our great
pleasure at receiving President Gonzalez and express once again our friendship
and admiration and support for the Government and the people of Spain.
The President and I had an exceptionally productive and cordial meeting
today. We reviewed international and bilateral matters in an open,
understanding, and democratic spirit that one would expect between friends and
allies. We affirmed the need for strong leadership to deal with the political
and economic and social problems which underlie so much of the unrest in the
world today.
We agreed on the importance of maintaining Western strength and solidarity in
these critical times and expressed our desire to work closely together as we
face the challenges ahead. We agreed on the desirability of early, positive,
and balanced conclusion to the CSCE Review Conference presently underway in
Madrid. I expressed our appreciation for President Gonzalez' recent
initiative in this regard, which we'll be discussing with our friends and
allies.
There are numerous areas of closer cooperation, including the pursuit of our
common energy security interests. We value Spain as an important partner. We
welcome the President's high sense of responsibility in guiding his country at
this critical moment in its history. We applaud Spain's aspirations to join
Europe fully and to make its voice heard in Europe's leading institutions.
We believe the West's most fundamental resource is the strength of democratic
institutions. The consolidation of democracy in Spain is a ringing affirmation
of the vitality of Western institutions and the appeal of Western values.
President Gonzalez. Good afternoon. First of all I want to thank President
Reagan for this occasion to hold an open conversation with the U.S.A., which we
consider a friendly country, a good friend of Spain.
As you know, Spain is a very old European country who, among other things,
discovered this land that nowadays occupies this great country of yours. But
it's also a young country, not only because the country people are young but
because we just recovered the dignity of being a democratic country.
stooD
A simple definition of Spain would characterize what her foreign policy
should be. Spain is a European and a Western country - the most Western of the
European countries - nothing then more logical than its wish to, and its
desire, to participate and integrate in the European and the Western world and
cooperate with the Western world in a common destiny.
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19 Weekly Comp. Pres. Doc. 903
But we are also a southern country in Europe. We are very close to Africa,
and our coast is in the Mediterranean Basin. This defines another important
aspect of our foreign policy: the north of Africa and the important waters of
the Mediterranean Basin.
The fact that I cannot communicate with you in English means that there is
another dimension in our policy and identity: the fact that we can communicate
in our language, in Spanish, with practically 300 million people in the American
Continent. This gives a third dimension in the foreign policy of Spain, without
meaning that any one of them means a priority against the others.
Let me tell you that I am 41 years old, and during 33 of these years, I was
dreaming of a free and democratic Spain. This is, of course, what we want and
we hope for our people. But this is also what we want and we hope for other
peoples wherever we can project this foreign policy. We, therefore, wish and
want for other countries who can communicate with us in cultural level: peace,
freedom, pluralism, and progress.
Because it's America and because it's such an important country in the world,
you'll understand perfectly well that we want also to make our links with the
United States even closer, which explains two things: first of all, my presence
here accepting a gracious and very kind invitation of President Reagan, and my
satisfaction because of the course of these conversations we have just had.
Thank you, Mr. President. Thank you very much.
Note: President Reagan spoke at 1:36 p.m. to reporters assembled on the South
Grounds of the White House. President Gonzalez spoke in Spanish, and his
remarks were translated by an interpreter.
Earlier, the two Presidents met in the Oval Office and then held a working
luncheon, together with U.S. and Spanish officials, in the State Dining Room.
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DATE: OCTOBER 6, 1989
CLIENT:
LIBRARY: GOVNWS
FILE: PRESDC
YOUR SEARCH REQUEST IS:
MALCOLM BALDRIDGE
NUMBER OF DOCUMENTS FOUND WITH YOUR REQUEST THROUGH:
LEVEL 1
4
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3RD DOCUMENT of Level 1 printed in FULL format.
Public Papers of the Presidents
1988 Legislative and Administrative Message
A Union of Individuals
24 Weekly Comp. Pres. Doc. 91
January 25, 1988
LENGTH: 21916 words
To the Congress of the United States:
INTRODUCTION
In one sentence of 52 words, the Framers of our Constitution announced the
proper ends of government in a free society:
"We the People of the United States, in Order to form a more perfect Union,
establish Justice, insure domestic Tranquility, provide for the common defence,
promote the general Welfare, and secure the Blessings of Liberty to ourselves
and our Posterity, do ordain and establish this Constitution for the United
States of America."
The six purposes listed in the Preamble for establishing the Constitution
serve as a lasting measure of the legitimate role of government. An American
President has no more sacred duty than to ensure that the government stays
within the constitutional limits that protect individual liberty. In assessing
this Administration's policies and proposals now and for the future, the
fundamental blueprint remains the Preamble of the Constitution.
In the past 7 years, our Administration has worked to restore a vision of
government that was the Founders' own --- a vision of a free and self-reliant
people, taking responsibility for its own welfare and progress through such
time-tested means as individual initiative, neighborhood and community
cooperation, and local and State self-government. The return of responsibility
and authority to the individual American is now leading to a virtual renaissance
in America of liberty, productivity, prosperity, and self-esteem.
Our foreign and defense policies are geared to protect american freedom
against external threats, to guarantee that our liberties are secure from the
aggressions of those whose values are not founded in human freedom. Protection
of liberty today means not just a strong America, but also a common defense with
our allies of the free world. It gives me pride to report that our mutual
efforts are being rewarded with a new growth of democracy and a renewed respect
around the world for this country and what it stands for. At home our challenge
remains to achieve full participation in the longest peacetime economic
expansion on record -- in the almost unlimited prosperity which flows from
genuine human freedom.
This statement of Administration policy is organized according to the six
basic tenets for which the American people first ordained and established the
Constitution:
Page
I. To Form a more Perfect Union
[92]
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24 Weekly Comp. Pres. Doc. 91
II. To Establish Justice
[95]
III. To Ensure Domestic Tranquility
[97]
IV. To Provide for the Common De-
[100]
fense
V. To Promote the General Wel-
[104]
fare
VI. To Secure the Blessings of Liberty
[120]
I. TO FORM A MORE PERFECT UNION
In setting aside the Articles of Confederation for a new Constitution, the
Framers acknowledged that the governmental deficiencies of the new Nation were
of their own making. They understood that if the American republic were to
endure and prosper, its organizing principles would have to be revised. The
constitutional system the Framers produced has been the wonder of the free
world, but after 200 years some aspects of that system are in need of repair and
reform. Accordingly, I propose the following measures to "form a more perfect
Union."
A. Balanced Budget Amendment
Before the Great Depression, the idea that the Federal government should
balance its budget on a yearly basis was treated as though it were part of the
Constitution. The economic crisis, and later World War II, forced the
abandonment of this policy. But what may have been necessary in those national
emergencies is now a permanent feature of the Federal government.
There is no question that continued Federal budget deficits, fueled by higher
spending, are bad for the economy. Unfortunately, our political system makes it
extremely difficult to reduce the deficit. The public interest in spending
restraint is a generalized one, diffused among the entire citizenry. The
special interests favoring spending on any particular program. are smaller, but
they fight much harder to maintain or increase spending.
Certainly, there are constructive proposals that would help control spending.
Since 1981, our budgets have sought billions of dollars in reductions of
outdated and outmoded programs. Members of the Congress and private think tanks
have also identified wasteful spending. But the political process's inability
to overcome inertia, along with the persistence of special interests, has led
many Americans to despair of achieving budgetary balance without constitutional
reform. That is why 32 States have applied to the Congress to call a
constitutional convention for the purpose of proposing a constitutional
amendment to require a balanced budget -- only two States short of the number
required by Article V of the Constitution.
In previous years, the Senate has approved such a balanced budget amendment
that would obviate such a convention, but the House has failed to support it.
This is clearly the option I prefer to achieve the constitutionally mandated
balanced budget desired by the overwhelming majority of the American people.
It is imperative that the Congress consider such an amendment as a major
priority for 1988, and I will be a willing partner in that enterprise.
B. Budget Process Reform
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It is widely acknowledged, by the Congress, the press, and the American
people, that the current budget process is not working. The Budget Act of 1974
was purported to streamline and rationalize the budget considerations by the
Congress. The new process was to "force" the various committees to consider
their recommendations in the context of the entire budget and ensure that proper
attention was paid to the bottom line -- the deficit.
In both substance and form, the process has failed. Deadlines are routinely
missed or ignored. Enforcement mechanisms are rarely employed. Debates over
the same issue occur three and four times a year. And from the size of the
deficit, the process has obviously failed to provide fiscal discipline.
Over the last 7 years, total revenues paid to the Federal government have
increased by over $250 billion. But total expenditures have increased by some
$325 billion. Part of the increased spending, $125 billion, or half of the
increase in revenues, was devoted to rebuilding our national defenses. But last
year, the government spent $140 billion more on domestic programs than in 1981
and $70 billion more on interest payments due to the deficit. And for every
dollar the Congress has cut from my defense request, they have added $2 to
domestic spending.
Nowhere is the failure of the budget process more evident than in the annual
process of developing the appropriations bills that establish discretionary
spending levels making up just under one-half the total budget. The regular
process requires that 13 separate appropriations bills be sent to the President
well in advance of the October 1 beginning of a new fiscal year. But the norm
has been anything but normal - during the last 7 years, the Congress sent only
10 of the 91 required bills on time. In the last 2 years, not one bill has been
on time and all 13 have been collapsed into one massive piece of legislation.
These increasingly large spending bills, passed at the last moment before
existing funding expires, deny the Congress and the Executive the ability to
adequately examine their contents. The Congress cannot truly vote on their
merits and the President has little ability to employ a veto.
While Gramm-Rudman-Hollings has helped restore some fiscal discipline, it
simply adds another layer to an already broken process. The threat of
across-the-board cuts is only partially effective as major portions of the
budget are exempt. And G-R-H does not produce what a truly effective budget
process should; namely, a thorough consideration of spending priorities within
the constraints of available revenues. To assist the next administration in
attaining the deficit targets contained in the Gramm-Rudman-Hollings law and
achieve a balanced budget within the next few years, the following changes in
the budget process are proposed:
* Joint Budget Resolution. The budget process has so degenerated in recent
years that the Presidential budget is routinely discarded and the congressional
one regularly goes unenforced. The product of this breakdown is a concurrent
resolution, requiring neither consultation with the Administration nor the
signature of the President. As a remedy, I propose that henceforth the Congress
and the Executive collaborate on a joint resolution that sets out spending
priorities within the revenues available. The requirement of a Presidential
signature would force both branches of government to resolve most policy issues
before formulating appropriations measures. The budget process could be further
improved by including in the budget law allocations by committee as well as by
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24 Weekly Comp. Pres. Doc. 91
budget function.
* Individual Transmittal of Appropriations Bills. The current practice of
transmitting full-year omnibus continuing resolutions oversteps appropriation
committee/subcommittee jurisdictions. More important, it does not permit the
Legislative and Executive branches to exercise proper scrutiny of Federal
spending. Therefore, I propose a requirement that appropriations bills be
transmitted individually to the President.
* Strict Observance of Allocations. During the 1980s, an unacceptable budget
practice evolved of disregarding congressionally approved function allocations.
Funds regularly were shifted from defense or international affairs to domestic
spending. I strongly urge that each fiscal year separate defense and
non-defense allocations be made and enforced through a point-of-order provision
in the budget act.
* Enhanced Rescission Authority. Under current law, the President may propose
rescissions of budget authority, but both houses of Congress must act
"favorably" for the rescission to take effect. The Supreme Court in theChadha
decision (1983) effectively moots even this limited authority. I propose a
change of law that would cure the legislative veto defect and require the
Congress to vote "up or down" on any Presidentially proposed rescission, thereby
preventing Congress from simply ignoring the rescission or avoiding a recorded
vote.
* Adopt Biennial Budgeting. The current budget process consumes too much time
and energy. A 2-year budget cycle offers several advantages -- among them, a
reduction in repetitive annual budget tasks, more time for congressional
oversight and consideration of key spending decisions in reconciliation, and
fewer gimmicks, such as shifting spending from one year to the next. I am
calling on the Congress to adopt biennial budgeting, beginning with a trial
2-year Defense budget.
* Truth in Federal Spending Legislation. As part of my Economic Bill of
Rights proposal, I outlined legislation that provides for "Truth in Federal
Spending. Soon I will transmit legislation that will require any future
legislation creating new Federal programs to be deficit-neutral; this will be
done by requiring the concurrent enactment of equal amounts of program
reductions or revenue increases. Additionally, my proposed legislation would
require that all future legislation and implementing regulations be accompanied
by financial impact statements detailing the measure's likely economic impact,
including the effect on State and local governments. Enactment of this proposal
would be an important step toward reassuring the American people that the
Congress is serious about controlling government spending.
C. Line Item Veto
A President should have the same tools to control spending that 43 governors
have. I will forward my proposal for a line item veto. It would allow future
Presidents to remove from spending bills those items that are extraneous -
without threatening the continuation of vital government programs. The Congress
could override each veto by a two-thirds vote in each House. The budget crisis,
however, also demands immediate action. For example, last month the Congress
presented me with a catchall spending bill with many extraneous and costly
provisions, some of which had been considered for the first time in
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24 Weekly Comp. Pres. Doc. 91
conference. I am asking the Congress immediately to accept the responsibility
for making its own processes work, rather than giving up and resorting to a
continuing resolution.
D. Super-majority Tax Amendment
Our Founding Fathers knew that without economic freedom there can be no
political freedom. Even before our Nation was full-born, nine colonies
assembled in a "Stamp Act Congress" and worked their will to oppose taxation
without representation. Today, we must once again resolve to put an end to
irresponsible taxation and spending. We have fallen into a costly and dangerous
habit, which could threaten our future prosperity, burden future generations,
and reduce the incentive of individuals and businesses to create more goods and
services.
It is clear that we need a mechan ism to control expenditures of Americans'
hardearned money. To this end, I will send to the Congress a proposed
constitutional amendment to require a super-majority vote in the Congress in
order to increase the tax burden on our citizens. I urge the Congress to act
expeditiously in approving this amendment and to send it to the States for
ratification.
E. Federalism - Returning Power to the People
At the time of my first State of the Union address, it was apparent that the
limited national government envisioned by the Framers had been replaced by a
national government whose involvement in domestic affairs was limited only by
its own will. The Founders understood that unchecked central authority
threatens individual liberties. Accordingly, they constituted a Federal system
of government, with all powers not specifically granted by the Constitution to
the national government reserved to the States and to the people.
We have sought to revitalize the principle of federalism by reforming the
institutional processes of the national government. This past October, I signed
Executive Order 12612, which requires Executive officials to ensure that all
proposed policies and legislation comply with federalism principles and to
conduct a formal federalism assessment as appropriate, and which restricts
Federal preemption of State laws. The Congress should review its legislative
procedures to determine whether reforms similar to those in Executive Order
12612 are warranted.
The National Governors Association and the Advisory Commission on
Intergovernmental Relations, as well as State and local officials, have been
examining possible amendments to the Constitution that would restore the
structural balance of power between the national government and the States. If
we in Washington are unsuccessful in reviving the constitutionally crucial
principle of federalism, it may become necessary to consider such proposals.
II. TO ESTABLISH JUSTICE
For 200 years our Republic has enjoyed a constitutional system that is the
envy of the world. By its own terms and by the will of the American people, the
Constitution is the supreme law of the land. Yet in recent years, some have
advocated and at times have succeeded in promoting a laxity in the observance of
the terms of its text. Fotunately, I can count as one of the most satisfying
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legacies of my presidency the work my Administration has done to restore the
foundations of American government through an insistence on the faithful
interpretation and observance of the Constitution.
A. Judicial Appointments
In the elections of 1980 and 1984, I promised the American people that I
would nominate judges and justices to the Supreme Court who would be faithful to
the Constitution. I have kept that promise.
Our written Constitution, adopted and ratified by the people 200 years ago
and amended several times since, is our fundamental law. Every government
official takes an oath to abide by its provisions. For members of the Congress,
this should mean enacting laws only in pursuance of the powers set forth in the
Constitution. As President, this means taking care that the laws are faithfully
executed. To the courts falls the task of adjudicating cases or controversies
according to the Constitution and the laws made under it. In 50 doing, judges
must faithfully interpret the text of the Constitution, as well as laws passed
by the Congress, as written, in accordance with their original meaning. To do
otherwise would constitute a usurpation of legislative power never intended by
the American people. With this in mind, I have been careful to nominate only
judges faithful to this principle. I urge the Senate to be guided by the same
standards in exercising its constitutional duty in the confirmation process.
Part of faithfully interpreting the law is seeing to it that those convicted
of crimes are dealt with fairly but firmly. In this respect, I am particularly
proud of my judicial appointments. Federal court records indicate that between
1981, when I first took office, and 1984, the average sentence handed down by a
Federal court per conviction increased dramatically -- by over 100 percent for
rape, over 100 percent for burglary, and over 60 percent for murder. I will
continue to nominate judges who are tough on crime. When the Senate adjourned
last year, 27 judicial nominations were left pending --- an unprecedented number
-- and other vacancies are yet to be filled as well. The Chief Justice of the
United States has stated that the high number of vacancies is contributing to an
enormous backlog for the Federal courts. The Senate must act expeditiously to
confirm these judges.
B. Civil Rights
Among the greatest imperatives in establishing justice is the elimination of
discrimination based on race, sex, and other immutable characteristics.
Discrimination based on religion is equally invidious. This Administration has
held high the banner of equal opportuntiy for all Americans, and we will not
retreat from the fight against discrimination wherever it exists.
Our achievements have been significant. We have successfully prosecuted
racial hate groups and have achieved more convictions for criminal civil rights
violations than any previous administration. We have moved aggressively to
enforce our Nation's voting rights laws, thereby securing for thousands of
citizens the most fundamental of all rights - the right to help shape their
future with a ballot.
In desegregating our Nation's public schools, we have placed the emphasis
where it should be -- on enhancing educational quality for all children.
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I am particularly proud of our successes in moving America closer to the
constitutional ideal of a color-blind society open to all without regard to
race. In the workplace, we have rejected the use of quotas and have insisted on
fair treatment in hiring and promotion decisions. And after 3 years of effort
by this Administration, the Fair Housing Initiatives Program has finally been
authorized. The Federal government will now be able to provide direct
assistance to State and local governments, as well as public and private
organizations, investigating complaints of housing discrimination. The 20th
anniversary of the Fair Housing Act of 1968 is an appropriate time to strengthen
the statute by increasing the penalties for those convicted of housing
discrimination and by extending the protections of the Act to handicapped
persons. This Administration will submit appropriate legislation to achieve
this purpose. Every American is entitled to freedom from discrimination -- to
be judged on the basis of qualification and performance, not on stereotypes and
unfair assumptions.
Currently pending in the Senate, however, is a bill whose vague and sweeping
language threatens to subject nearly every facet of American life -- from the
corner grocery to the local church or synagogue to local and State government --
to intrusive regulation by Federal agencies and courts. Ironically it does SO
in the name of civil rights. This Administration opposes this overreaching
legislation known as the Civil Rights Restoration Act of 1987 (S. 557). In its
stead, I have proposed a bill that provides institution-wide coverage under the
appropriate civil rights statutes of educational institutions receiving Federal
aid while avoiding an unwarranted expansion of Federal jurisdiction. My
proposal, the Civil Rights Act Amendments of 1987 (H.R. 1881), also ensures
adequate protection of religious tenets under Title IX and makes clear that no
institution must provide insurance coverage for abortions or perform abortions
as a condition of the receipt of Federal aid.
C. Protection of Victims of Obscenity and Child Pornography
In establishing Justice we must be ever mindful that our cherished
constitutional freedoms cannot be distorted to protect activities that exploit
the innocent and defenseless. The production and distribution of obscene
materials, as well as child pornography, are such activities. Our
Administration has made the elimination of these materials a top domestic
priority.
The Attorney General's Commission on Pornography report has resulted in
several new law enforcement efforts, foremost among these being the
establishment of a special enforcement unit with the Department of Justice. In
a single operation in 1987 more purveyors of child pornography were federally
indicted than at any time in history, and the first Federal obscenity
racketerring convictions were recently returned in Virginia. However, much more
can be done to protect our children and families if the Congress enacts my
proposed Child Protection and Obscenity Enforcement Act of 1987. It would
criminalize buying and selling children for use in pornography, and it would
also prohibit dial-a-porn and cable obscenity. It would strengthen our laws
against organized crime traffic in hard-core obscenity.
D. Legal Services for the Needy
Provision of needed legal services for those who cannot afford them is an
important goal of our society. Unfortunately, the current system adminsitered
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by the Legal Services Corporation (LSC) is not working. Each year the Congress
has mandated that a large portion of these funds be allotted to a group of
"National and State Support Centers." Since 1975 these law reform think tanks
have been criticized for political involvement and have not provided any
day-to-day service to the poor -- the original intent of the LSC. Instead, they
have concentrated on social "law reform," without regard to a particular
client's needs. I call on the Congress to disallow LSC funds for political
think tanks or "support centers" and through strong and specific legal language
to limit any political lobbying by LSC grantees. All LSC funds should be used
to assist directly the poor in need of legal help.
There is another way in which the needy are being badly served by LSC. A
congressionally mandated policy of "Annual Presumptive Funding" precludes the
possibility of awarding LSC grants on a competitive basis. LSC must be able to
demand results from grantees or give other prospective grantees opportunity
better to serve the poor. While stability is desirable, we must be able to weed
out inefficient or incapable grantees.
III. TO ENSURE DOMESTIC TRANQUILLITY
The leading threat to domestic tranquillity comes in the form of criminal
offenses of citizen against citizen. When I took office crime rates were
soaring. The public, with good reason, felt unsafe in our stretts and often
even in homes and places of work. Determined to give America back to its
law-abiding citizens, our country is in the midst of the most vigorous
crime-fighting effort in its history. Passage of the Comprehensive Crime
Control Act of 1984, appointment to the bench of Federal judges who are tough on
crime, and an unprecedented attack on organized crime are efforts that have paid
off. In spite of our successes, however, much remains to be done.
A. Restoration of the Federal Death Penalty
Federal statutes currently provide for capital punishment for the offenses of
espionage, treason, murder, and certain other felonies such as air piracy.
Except in the case of the air piracy statute, enacted in 1973, these death
penalty provisions are not accompanied by appropriate procedures required since
the Supreme Court's 1972 decision in Furman Y. Georgia to prevent disparate
application. In this respect, the Congress has lagged well behind behind the
State legislatures, more than 40 of which have acted to adopt appropriate death
penalty procedures since the Furman decision.
Fortunately a solution is at hand. The Comprehensive Crime Control Act of
1984 created the United States Sentencing Commission to promulgate sentencing
guidelines to insure consistent, tough, and equitable sentencing. The
Commission should go forward now to set in place procedures to permit the
constitutional imposition of capital sentences for the most serious Federal
offenses.
B. Criminal Justice Reform Act
To protect further society from criminals, the Congress should act promptly
on the Criminal Justice Reform Act, which I transmitted last year. By statute
it would establish uniform procedures that would allow death penalty provisions
in current Federal statutes to be enforced according to recent important reforms
to curb the abuse ofhabeas corpus by convicted criminals and to promote truth
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in the courtroom by ensuring that evidence obtained by the police through
reasonable searches and seizures can be used at trial. These important
protections for the public will complete the anti-crime effort we began with the
Comprehensive Crime Control Act of 1984. They were approved by the Senate in
1984 and in part by the House of Representatives in 1986. The time has come -
this year -- to enact them into law.
C. Victims of Crime
In 1982 my Task Force on Victims of Crime pointed out that all too often
crime victims suffer doubly - they are first victimized by criminals and then
by an inadequate justice system. My Administration has put into effect a number
of the Task Force recommendations. The most important of these has been the
development of model legislation mandating the protection and fair treatment of
crime victims, which by 1986 had become the basis for legislative action in
nearly two-thirds of the States. I am directing the Attorney General to press
forward on the remaining Task Force recommendations.
D. The Fight Against Terrorism
Innocent Americans and freedom-loving people across the world have become the
victims of terrorists. But this Nation will not be held captive to the will and
whim of terrorists.
This Administration is considering a series of legislative proposals designed
to strengthen our hand against terrorists. These include proposals for the
expeditious removal of aliens from the United States who are engaged in
terrorist activity and proposals providing for criminal and civil forfeiture of
terrorists' assets.
State-sponsored terrorism, fomented by governments whose conduct and support
for such acts put them outside the community of nations, remains a scourge on
the international scene and a particular threat to our citizens and interests.
We must further develop the rule of law against these criminals by denying
terrorists the legitimacy of international instruments condoning their
activities. The Senate should give its advice and consent to ratification, with
certain reservations, of Additional Protocol II to the 1949 Geneva Conventions,
which would serve to promote basic human rights. The Administration has
rejected Additional Protocol I, which would give combatant status to terrorist
organizations, and I welcome congressional support of this decision.
E. Organized Crime
For over a half-century this Nation has been plagued be organized crime. Due
to virgorous efforts by Federal investigators and prosecutors, some of the most
infamous leaders of organized crime are now facing long jail terms. This
progress has come through a new strategy aimed at penetrating crime syndicates
and targeting their leadership for prosecution. Strike forces have focused on
several major cities such as Cleveland, Kansas City, and Boston. One of our
most recent successes was in March of 1987 when a jury in New York returned 18
guilty verdicts in the "Pizza Connection" case involving $50 million in
laundered proceeds from heroin sales by an organized crime group. In addition,
our Administration's Comprehensive Crime Control Act of 1984 has enabled police
to detain pending trial certain organized crime figures who previously could
have made bail and has dramatically expanded our ability to seize and forfeith
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the assets of mob members.
Yet, mob-run crime is still a grave problem. Obscenity, extortion, drug
importation and sales, loan sharking, illegal gambling, and murder are all
crimes that we intend to hit hard during the remainder of this Administration.
Our goal is to put "the mob" out of business through vigorous use of both
criminal and civil statutes, by purging organized crime elements from labor
organizations, and by targeting the newer, "emerging" organized crime groups to
ensure that they never wield the mob's power and influence.
F. Prison Capacity Expansion
One result of our increased efforts to fight crime is that the number of
criminals serving time in Federal prisons has increased dramatically -- nearly
80 percent since 1981. We anticipate that the Federal inmate population will
continue to increase in the future, particularly in light of the enhanced
criminal penalties contained in the Anti-Drug Abuse Act of 1986 and the new
sentencing guidelines. One of my top priorities for the next year will be to
increase substantially the construction of new prison space to accommodate the
increased number of criminals being removed from our streets.
G. Drug Free America
In the past 7 years, the Nation has made tremendous gains towards a drug free
America. Today, public attitudes are clearly against the use of illegal drugs,
and drug awareness is increasing. The national prevention effort has taken off
with its own strong momentum. Individuals and communities, businesses and
schools are taking a firm stand against the use of illegal drugs. Most
important, the number of drug users is down; and our children are showing us
that they are willing and able to say "no" to drugs.
We are on our way to a drug free future. Still, illegal drugs continue to
destroy the lives and the hopes of hundred of thousands of Americans each year,
especially young people whose future lies before them. Since the beginning of
my Administration, I have committed the Federal government to provide national
leadership and support to the national crusade, encouraging and assisting
private sector efforts and aggressively pursuing Federal responsibilities to
stop the supply and use of illegal drugs. The National Drug Policy Board, which
I established by Executive order on March 26, 1987, has ensured that our Federal
agencies work together effectively and efficiently. The Board has named lead
agencies for all facets of the anti-drug program to improve coordination
throughout the government and enable us to achieve maximum impact with out
resources. To this end, the Board has developed a series of nine interrelated
strategies.
Five strategies are aimed at reducing the supply of illegal drugs: enhanced
internationalcooperation; stepped-up interdictionof drugs coming into this
country; improvedintelligence on drug activities; stepped-upinvestigations to
eliminate drug trafficking organizations; and targeting prosecution of top drug
organizations. Simply put, we are working with our allies throughout the world
to reduce the amount of illegal drugs produced or processed; making sure that as
little as possible of those illicit drugs entr this Nation; and Federal, State,
and local officials are working together to investigate and prosecute to the
fullest these merchants of destruction.
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And we are working to reduce the demand for drugs. Nancy and I join the
millions of parents across the country who know too well that real progress
toward the goal of a drug free America will best be measured by preventing
individuals who do not use drugs from beginning to use them and by convincing
those who do use to stop.
Our four strategies to reduce demand are: prevention education to keep young
people from becoming drug users; reduction of drug use by high-risk youths;
improved community-based treatment for addicts whose drug habits have removed
them from the American mainstream; and fostering attitudes of intolerance toward
drug use on the part of mainstream adults.
Every American should be able to enjoy a drug free workplace. Schoolchildren
should have drug free schools. Every citizen should be able to rely on a
Federal work force free from drugs. And every American should be able to enjoy
a drug free transportation system. This Administration is working in
partnership with private employers and State and local governments to ensure all
four.
We are proceeding with a cooperative national effort to reduce and eventually
eliminate drugs from government housing projects. The Department of Education
issued Schools Without Drugs and has mobilized school, parent, and community
efforts to take drugs away from young people and give them back their lives.
These efforts have already begun to produce results. In 1987, for the first
time since the National Institute on Drug Abuse began its annual survey of high
school seniors in the early 1970s, a significant drop -- one-third - in current
cocaine use was revealed. Ninety-seven percent of the seniors polled
disapproved of regular cocaine use, and 87 percent disapproved of even trying it
-- strong evidence that cocaine use is no longer "in" among young Americans.
Finally, as the Nation's largest employer, the Federal government is
committed to establishing a model for a drug free workplace that deals
constructively with illegal drug use. We are establishing a broad drug
education training program for all employees. The program includes testing of
employees holding safety-sensitive positions. For example, the Department of
Transportation has already implemented drug-testing programs for employees in
such positions, including air-traffic controllers and airline safety inspectors.
Indeed, fair and accurate drug testing is one of the few effective ways to
ensure that illegal drug users begin the process of rehabilitation. Agency
programs that include random testing to identify these drug users will be ready
for implementation in 1988. We are putting our money where our heart is. In
the past 7 years, there has been a three-fold increase in Federal spending to
fight drugs, bringing the total close to $3.5 billion this year.
I worked closely with the Congress to enact the Anti-Drug Abuse Act of 1986,
which embodies a national commitment to fight drug abuse through: increased
criminal penalties, improved criminal investigation and prosecution, demand
reduction, better international cooperation, and more effective interdiction.
The Act also established the White House Conference for a Drug Free America.
Already it has hosted six regional forums to facilitate information gathering
and interchange on various aspects of the drug issue. The Conference will hold
a national assembly in Washington next month that will expand upon the findings
of the regional conferences, showcase the best of the Nation's efforts, and
highlight new proposals for combatting drug use in this country. I look
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forward to the group's final report this spring in order to work with the
Congress to implement its recommendations and promote our vision of a drug free
America.
IV. TO PROVIDE FOR THE COMMON DEFENSE
Our government has no higher duty than defense of the freedom of the American
people. On this point, Alexander Hamilton and James Madison, two of the most
eminent Framers of our Constitution, were in complete agreement. Wrote
Alexander Hamilton in The Federalist, "The circumstances which endanger the
safety of nations are infinite, and for this reason no constitutional shackles
can wisely be imposed on the power to which the care of it is committed." James
Madison concurred, "The means of security can only be regulated by the means and
the danger of attack."
In our constitutional framework, the President and the Congress share the
vital responsibility for ensuring our national security. Within this same
constitutional framework, however, the President has important independent
powers. Both of these constitutional principles apply to the agenda of national
security issues we will face in 1988 and beyond.
Our two branches of government clearly share powers in such areas as planning
and budgeting for the maintenance of our defense capability; the ratification of
treaties, as in the cae of the INF Treaty; and foreign economic and security
assistance, that vital instrument of our foreign policy. At the same time, the
Congress must respect the constitutional wisdom that only the President can act
as the effective Executive agent in the conduct of foreign relations. This
truth is long established in our constitutional law and practice. And the
President, in order to act effectively in the Nation's behalf, needs the
flexibility to respond, within the framework of law, to often unpredictable and
fast-moving challenges.
In 1980, I promised as my first priority to rebuild our national defenses to
meet the Soviet military challenge and to restore America's standing as leader
of the Free World. Immediately this Administration went to work to rebuild our
military, to restore morale in the services and national pride among our people,
and to make America once again the leader of free nations. As a result, we are
now able to deal from strength with our adversaries and to promote and sustain
the efforts of valiant men and women around the globe who are struggling to win
or preserve their freedom. Peace is our goal, but we must guard the power and
responsibility to meet every challenge.
A. East-West Relations
On the basis of our renewed strength, and a policy of realism in the pursuit
of peace, we have in the past 7 years taken great strides toward a world in
which freedom can flourish. In the coming year, we face new challenges and new
opportunities, and I hope that the Congress will be my partner in addressing
both.
Today I have submitted to the Senate for its advice and consent to
ratification the Treaty Between the United States of America and the Union of
Soviet Socialist Republics on the Elimination of Their Intermediate-Range and
Shorter-Range Missiles. This INF Treaty is the first agreement ever toreduce
and not simply limit the buildup of nuclear weaponry, and it provides for the
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elimination of an entire class of U.S. and Soviet nuclear missiles. It contains
the most stringent verification regime in the history of arms control. This
treaty represents the culmination of 6 years of hard negotiation. After the
West showed strength and solidarity, the Soviets joined us in an agreement to
ban such weapons on both sides.
On the basis of similar strength and fortitude, and support from the American
people and the Congress, we are engaged in serious negotiations with the Soviet
Union on an agreement that could reduce strategic nuclear offensive forces by 50
percent. The United States and Soviet Union are negotiating for effective
verification measures that would make it possible to ratify the U.S.-U.S.S.R.
Threshold Test Ban Treaty of 1974 and Peaceful Nuclear Explosions Treaty of
1976.
These accomplishments depend on maintaining our strength. It should now be
unmistakably clear that out determined program to rebuild our military strength
and my Strategic Defense Initiative have spurred major advances in arms
reduction, as well as strengthening our own and allied security. These efforts
must not be undercut.
In addition, I must reiterate what I said last year -- that legislating
Soviet arms control positions into American law is not the way to get good
agreements. I will veto legislation that undermines national security and
undercuts our negotiating position.
The issue between East and West, of course, is not simply arms control.
Efforts by the Soviet Union and its surrogates to suppress freedom are major
sources of international tensions. Experience shows these efforts to be
significant obstacles to improvements in U.S.-Soviet relations.
Human rights and regional conflicts are key issues on my agenda with the
Soviet Union. Unfortunately, I can report to you only very limited improvement
in both of these areas. For instance, while a few Soviet political prisoners
have been released, and there has been some increase this past year in the
emigration of Soviet Jews, many more prisoners remain, and many thousands of
Soviet Jews are still denied the basic right to emigrate. Furthermore there has
been no significant change in Soviet involvement in or provocation of regional
conflicts, despite the repeated Soviet lip service to the need for peaceful
solutions.
B. Defense Budget
Our defense budget proposals represent an essential program for maintaining
our defensive strength. The defense budget has already been reduced to levels
that will require us to delay the achievement of important defense objectives.
Anything less will jeopardize not only our national security and that of our
allies but also the prospects for fair agreements negotiated with our
adversaries.
With this in mind we must continue with the Strategic Modernization Program
as an essential guarantor of Free World security at the same time as we seek
clear-cut and effectively verifiable strategic arms reductions. We must also
continue the modernization of nuclear, conventional, and chemical deterrence
forces supporting our commitments to our allies. Additionally, we must ensure
that the conventional force disparities between NATO and the Warsaw Pact are
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redressed through a combination of negotiated reductions and the strengthening
of NATO capabilities.
My Strategic Defense Initiative (SDI) is not simply a program of research and
development of new technology. It offers hope of a reorientation of strategy --
hope for a world in which strategic defenses, which threaten no one and can
block a ballistic-missile attack, play a greater role in maintaining deterrence.
This is a vital program. It is an investment in a safer world for our children,
and it is insurance against violations of arms reduction agreements. It
reinforces our negotiating efforts. I will ask the Congress to provide
increases in funding necessary for essential SDI research, development, and
testing. It is a cornerstone of our security strategy for the 1990s and beyond.
And when it is ready, we will deploy it.
Despite reductions in defense funding, we must attempt to maintain the
strength of our technology base, pursuing new developments in conventional
weapons technology. We must also continue our Armaments Cooperation initiatives
with our allies to realize improvement in acquisition management and the
advantages of shared technological advances among our allies.
We will maintain, where necessary, the deployment of U.S. military forces
throughout the Free World as a deterrent to those who might act to threaten
peace and freedom and as evidence of solidarity with our allies and other
friendly nations.
We must continue to develop and to exercise our capabilities to respond to
low-intensity conflict. These simmering confrontations below the threshold of
large-scale conventional war undermine the political, economic, and security
interests of the United States and its allies and friends.
We must complete the revitalization of our special operations capability
begun early in this Administration and preserve that capability in the ensuing
years.
Similarly, we need a vital and effective intelligence capability. We must
ensure that this capability is effectively managed and that the President has
the ability to employ it flexibly. I will not accept legislation governing the
conduct of intelligence activities that does not preserve the flexibility that
is required if our intelligence community is to do its job. To improve the
military intelligence support to U.S. military commanders, especially in the
vital area of human intelligence collection, I am seeking legislation to
authorize the Secretary of Defense to establish commercial entities to provide
cover for certain Department of Defense foreign intelligence collection
activities.
As we address the resource requirements for our defense efforts, we must also
streamline the process of resource allocation. For this reason, I urge the
Congress to shift fully to a 2-year defense authorization and appropriation
cycle. This Administration continues to press initiatives that streamline and
strengthen the Federal procurement process to dramatically increase competition
in the award of Federal contracts. We are placing particular emphasis on the
findings of the Blue Ribbon Commission on Defense Management (The Packard
Commission) and especially those recommendations having government-wide effect.
C. Democracy and Freedom
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America's goal is both peace and freedom. Americans have always believed
that liberty was not the birthright of a fortunate few but of all mankind. And
we are inspired in this period by the stirring sight of democracy flourishing
anew in many regions of the world --- from Latin America to the Philippines to
the Republic of Korea.
Most remarkable is the struggle of those directly resisting aggression
sponsored by the Soviet Union and its surrogates --- in Afghanistan, in Cambodia,
in Nicaragua, and in Angola.
I strongly support the cause of the brave Freedom Fighters of Nicaragua. On
this issue there have been differences between the Executive branch and the
Congress, but there are also shared principles: that there must not be a Cuban
or a Soviet-bloc military base in Nicaragua, because such a base would threaten
the United States and the other nations in the Hemisphere; that Nicaragua must
not pose a military threat to its neighbors or provide a staging ground for
subversion or destabilization; and that Nicaragua must respect the basic
freedoms and human rights of its own people, including the original pledges the
Sandinista regime made to the Organization of American States in 1979.
It is now widely accepted that democracywithin Nicaragua is the core issue in
the conflict in Central America. It is the attempt of the Communist Sandinista
regime to consolidate its monopoly of power that has led to armed rebellion.
The Guatemala Peace Accord, reached last August, recognizes the importance of
democracy within Nicaragua -- of total amnesty for political prisoners, of
negotiations with the armed resistance for a cease-fire. The outcome of the
January 15 San Jose meeting to evalute compliance with the Guatemala Peace
Accord presents important opportunities to further peace and democracy in the
troubled Central American region.
At the San Jose Summit there was a clear consensus among the four Central
American democratic presidents that the Sandinistas had not complied with the
Peace Accord. By making his last-minute promises President Ortega acknowledged
the accuracy of that judgment.
The key issue is whether the Sandinistas are now committed to genuine and
enduring democracy or do they just seek the elimination of the Nicaraguan
Democratic Resistance.
The Nicaraguan Democratic Resistance is the best insurance policy for keeping
the peace process on track and producing a democratic outcome in Nicaragua.
This is not the time to falter in our support for the Freedom Fighters. The
United States must not abandon those fighting for democracy in Nicaragua until
true democracy is attained.
In Afghanistan, we maintain our firm and unwavering support for the heroic
struggle of the Afghan Resistance against the Soviet occupation. We will never
agree to any steps that put the Afghan Resistance, or Afghan hopes for
self-determination, at risk.
We support a peaceful solution, but such a solution can be achieved only if
the Soviet Union withdraws its forces promptly and completely and allows Afghans
themselves to determine their political future. AS I reminded Secretary General
Gorbachev during the December Summit, a prompt and permanent Soviet withdrawal
would open the way to further improvements in U.S.-Soviet relations. Let 1988
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be the year that sees an end to the Soviet occupation of Afghanistan.
We shall continue our policy in the Persian Gulf to promote stability in the
region, maintain freedom of navigation, and promote peace between Iran and Iraq.
This bloody conflict has been prolonged because of Iran's intransigence and its
attempts to intimidate and threaten the countries of the area and disrupt
freedom of navigation. As a result of our policy, we have broadened and
strengthened our relationship with the countries of the Gulf Cooperation
Council, and our vital itnerest in the free flow of oil in and out of the Gulf
has been protected. We are actively pursuing an arms embargo resolution against
Iran, which has refused to comply with the cease-fire demand of the United
Nations Security Council.
At the same time, we will work actively to promote peace between Israel and
its Arab neighbors. The violence in the West Bank and Gaza is a vivid reminder
of the dangers of the status quo. We, along with those in the area, must work
together to give the Palestinians a reason for hope, not despair. Stability in
the Middle East requires a just and lasting settlement of the Arab-Israeli
conflict ------------------------- a settlement that both assures Israeli security and recognizes the
legitimate rights of the Palestinians. We are committed to achieving such a
settlement.
The cause of democracy and freedom worldwide is promoted by our program of
economic and security assistance to our allies and friends. Central to our
security and to the preservation of peace are our ties with allies and friends,
including NATO and our East Asian allies --- Japan, Korea, the Philippines, and
Thailand. Enormous progress has been made in this decade in restoring America's
influence in the world and in expanding the horizons of democracy. To further
reduce our foreign assistance programs would be a tragic mistake. Economic
assitance, especially when coupled with wise internal policies, helps friendly
countries prosper; security assistance helps them carry the burden of their
self-defense, often in regions of strategic importance for the Free World. In
many cases, our aid programs help countries on whose territory there are
facilities that support the mutual defense or whose democratic aspirations we
wish strongly to support - such as the Philippines. Our assistance programs
have also been vehicles for encouraging structural economic policy reforms that
promote prosperity, in part through greater reliance on free markets. This
crucial support for basic American goals must be restored.
Since the enactment of comprehensive reform of our Nation's immigration laws
in the fall of 1986, the flow of illegal aliens across our southern border has
been reduced significantly. Our Nation continues to provide open avenues of
legal immigration that each year allow 600, people to join our ranks as
permanent residents. As in the past, a significant portion of these new
arrivals are individuals seeking refuge from oppression in their home countries.
I am pleased to report the Department of Justice has taken two important steps
toward fairer, more expeditious consideration of the asylum applications of
persons suffering persecution because of their religious and political beliefs.
An Asylum Policy and Review Unit, charged with reviewing asylum cases, has been
created directly within the Department. In addition, a change has been proposed
in the Immigration and Naturalization Service that would give specially trained
Asylum Officers jurisdiction to interview applicants and render decisions, while
preserving for each applicant an opportunity for a new hearing before an
independent immigration judge. Our Administration is also studying a further
restructuring of the asylum process to ensure that asylum and refugee cases
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are considered from a humanitarian perspective.
AS General Vessey's visit last summer to Vietnam indicated, we remain
committed to obtaining the fullest possible accounting of our men missing in
action in Southeast Asia.
D. The Economic Dimension of Freedom
We remain active in promoting free economic institutions in the developing
world. In this connection, the Administration strongly supports the intent of
the Caribbean Basin Economic Recovery Expansion Act, which would extend the
Caribbean Basin Initiative (CBI) for an additional 12-year period and enhance
the program's duty prefernces. While not supporting every specific provision in
the bill, such as the one concerning sugar, the Administration shares the goal
of strengthening the CBI and is proposing modifications and alternatives to
reach that goal. In addition, the Senate should give its advice and consent to
the ratification of the Bermuda Tax Treaty, and the Congress should enact the
complementary tax law changes. These actions would help regularize our economic
ties with this strategically important island.
The United States has been in the forefront of Western nations helping Africa
to alleviate food shortages due to drought, war, and destructive economic
policies as in Ethiopia. For example, in June 1987 I set a common goal for all
U.S. economic policies and programs for Sub-Saharan Africa - to end hunger
there through economic growth and private sector development, and I am now
implementing that decision. At the same time, we have had some success in
promoting economic policy reform in Africa, which is now bringing the benefits
of investment incentives and free markets to a number of countries that began
their independence burdened by stultifying centralized structures. Senegal,
Ghana, Cameroon, Botswana, and Malawi are some of the countries adopting
market-oriented reforms.
To meet future oil supply disruptions that might develop, it is important
that additional oil reserves be placed in the Strategic Petroleum Reserve to
meet our 750-million-barrel target. In the section "Strengthening America's
Energy Security," which follows, I outline several steps that will strengthen
America's overall energy security.
I am proud that our Administration has instituted an effective and prudent
system of safeguarding our strategic interests in East-West trade. We cannot
let our adversaries acquire through trade vital technology that would strengthen
their military capability against us. At the same time we are determined to
harmonize trade control practices with friends and allies both to enhance their
effectiveness and to avoid undermining the competitive position of U.S. exports.
V. TO PROMOTE THE GENERAL WELFARE
As james Madison observed in The Federalist, No. 41, the meaning of the
"general welfare" is restricted to that public happiness which the government
may promote by its clearly enumerated powers. Permitting general and unlimited
powers to government, even though these might be used with the best motives,
would render the Constitution useless as a safeguard for individual freedom.
This Administration is deeply committed to decreasing the power of the
Federal government to its intended scope and to increasing the power of
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individuals. These policies establish conditions most conducive to individual
initiative and enterprise and, consequently, to the creation of wealth and
public well-being. The preservation of freedom, the highest value in our
Republic, requries placing the rights of individuals abover the power of
government. The great challenge of our national government is to use only its
carefully enumerated powers in promoting the general welfare by empowering
individuals to help themselves.
A. Empowering Individuals To Control Their Own Resources
If individuals are to possess genuine autonomy then they must be free to
control their own resources, to enjoy the fruits of their labor, and to keep
what they earn, free from excessive government taxation and spending. To
further this ideal, I propose the following six specifics:
1. Tax Policy. Experience has shown that higher taxes ultimately fuel higher
spending and do not improve the deficit. During the past 7 years, tax revenues
generally have increased, but spending has still increased 27 percent more than
tax revenues. This is the true source of the deficit.
Those who favor higher taxes ignore the impact of such taxes on the economy.
By reducing and reforming taxes we have seen unprecedented economic growth, high
rates of job creation, and increasing productivity for over 60 months. During
this period of time, the Administration has lowered income tax rates and removed
the automatic tax increases caused by inflation. Future tax policy must
preserve these and other gains made on behalf of the American taxpayer. Tax
increases should also be opposed on the basis of their burden on economic
growth. These include, but are not limited to, returning to higher marginal
rates for individuals or corporations; repealing indexing; creating a
value-added tax or increasing excise taxes; increasing taxes on capital or
energy sources; and levying new taxes on securities transfers or corporate
takeovers.
2. Reduction of Capital Gains Tax Rate. The tax reforms accomplished in 1986
did much to remove provisions that inhibit economic prosperity. The most
important piece of unfinished business is to reduce the capital gains tax rate
to the level that will generate the savings and investment necessary for future
economic growth.
Past experience demonstrates that lowering the capital gains tax rate will
mean increased realizations of capital gains upon which taxes are paid. When
capital gains tax rates increase, investors tend to hold rather than sell their
assets. If investors hold their assets until death, they can pass their untaxed
gains on to their children, resulting in no income taxes paid on those gains.
When the capital gains tax rate was increased in 1969, for example, it led to an
immediate reduction in the amount of capital gains realized. By contrast, a
reduction in the capital gains tax rate in 1978 and again in 1981 led to
significant increases in capital gains realizations.
Reducing the capital gains tax rate to an agreed-upon optimum should be a
cornerstone of tax reform for the 1990s. I will consult with the Congress about
achieving this rate reduction as soon as possible.
3. Raise Revenues with User Fees. The burden of reducing the deficit must
not be allowed to hamper the productive element of society --- the private
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sector. Raising new revenues must be confined to areas where they will not
burden productivity. I believe that user fees for services are a sensible
alternative to a policy where revenues are unrelated to expenditures, where some
citizens are singled out for gain while others are excluded. Additionally, user
fees promote efficiency by encouraging individuals to use the proper level of
government services.
4. Spending Restraint. We all recognize that reducing the size of the
Federal deficit is a top priority. The 2-year budget agreement that the
Congress and I worked out last fall is a first step. But we must go further and
reduce the size and the cost of the Federal government. I will apply the
following principles in considering new appropriations and authorization
legislation, which I urge the Congress also to follow: eliminate pork-barrel
spending that uses national funds to benefit local interests; work toward
subsidy-free business and agriculture marketing; avoid creation of new
entitlement programs and additional cost-of-living increase provisions; direct
public assistance to the needy; and provide for necessary discretion to promote
efficient administration of Federal programs. moreover, the Congress should
avoid attaching appendages to spending bills that authorize unnecessary programs
and go beyond the enumerated powers of the national government.
5. Government Management Improvements --- Government of the future. When I
became President, one of my earliest priorities was to try to reestablish the
proper relationship between the Federal government (which had grown much too
large and too powerful) and the State and local governments; and between
government and the private sector. In 1981, through our federalism and
deregulation initiatives, we placed greater responsibility at the State and
local level and in the private sector. We are continuing those efforts.
But as we look forward to the beginning of the 21st century, we need to
update our perspective on the proper role of the Federal government and examine
what needs to be done to prepare for the changes that will take place. For
example, we expect the population to grow to over 268 million people. Changes
in technology and communication will link the world's economies, trade, capital
flows, and travel as never before. I have asked the Office of Domestic Affairs
to work with the President's Council on Management Improvement to conduct an
in-depth review and recommend to me by August what further adjustments have to
be made in the Federal role to prepare for these anticipated changes. This
summer I look forward to receiving their report, "Government of the Future,"
which will also incorporate plans of my "Reform '88" program.
Meanwhile, those responsibilites that legitimately fall within the enumerated
powers of the Executive branch should be managed to deliver quality service to
all of our citizens. Our government has a major effect upon the daily lives of
all of us through the direct delivery of services, the payment of financial
assistance through various entitlement programs, the collection of taxes and
fees, and through regulating commercial enterprises. My 1988 management
priorities will be to complete the "Reform '88" management improvement program I
started 6 years ago; to overhaul the administrative, financial, and credit
systems in our Federal government; to implement productivity and quality plans
in each agency; and to direct the Office of Personnel Management to examine the
needs of the Federal work force of the future.
My goal, therefore, is to ensure that my Administration leave a "legacy" of
good management of today's problems -- with plans in place to handle
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tomorrow's challenges.
6. Social Security Reports to Participants. Virtually all workers are
required to participate in the social security system. But the average worker
does not know the level of benefits that would be paid his family should he die,
become disabled, or retire. As a result he cannot make plans for any
supplemental benefits and insurance he may need.
I am pleased to announce that before the year is over the Social Security
Administration will begin providing upon request reports similar to those
frequently provided to employees who receive private sector benefits. The
social security report will contain a clear and detailed statement that outlines
a participant's credited earnings and social security taxes for each year;
indicates his current eligibility status; and sets forth an estimate in current
dollars of the current and future benefits available to him.
B. Freeing the Individual From Government Dependency
It is a fact of American life that many Federal programs, while attempting to
help the poor, have made them more dependent on the government. Much is within
our reach to help dependent citizens lift themselves to self-sufficiency:
1. Reducing Welfare Dependency through opportunity. The current welfare
system has trapped too many Americans in a dependency on welfare that is hard to
break and easy to pass on to succeeding generations. In recent years, a
consensus has emerged that it is through work and the acceptance of
responsibility that people develop the self-esteem to pull themselves up from
dependency.
Last year I launched a major effort to encourage the States, working with
established community self-help groups, to undertake a wide range of "workfare"
and other responsibility-building reform experiments. Experience has clearly
shown that it is in the States that real welfare reform will occur. This was
true back in the 1970s in California when we started this movement; it is
increasingly the case today. The States' and my objective is to make work and
self-sufficiency more attractive than welfare. However, because the current
welfare system is 50 complex and restrictive in its endless rules and
restrictions, we need legislation to give the States added flexibility and
encouragement to undertake truly innovative and individualized reform
experiments.
Last August I endorsed H.R. 3200/S. 1655, legislation that represents a
constructive and fiscally responsible approach to reducing welfare dependency.
This legislation would help more people become self-sufficient through mandatory
participation requirements and a flexible work and training program. It would
strengthen our ability to require absent parents to support their children. It
also contains the broad waiver authority States need to implement their own
ideas and make the welfare system more responsible to the needs of each
particular State. I call on the Congress to enact this legislation and not use
the present consensus on the need to reform our wefare system as an opportunity
simply to expand the benefit levels, which would lead to increased dependency.
Even under the limited authority of current law, many States have undertaken
or are planning such experiments. To assist them I have established the
Interagency Low Income Opportunity Advisory Board to facilitate "one-stop
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shopping" for the States as they deal with the federal government and to advise
my Cabinet on the impact of the State proposals on the Federal welfare system.
Recently this Board facilitated multi-program waivers of Federal programs to
the States of Wisconsin and New Jersey, enabling them to launch broad-based
welfare reform initiatives. Wisconsin's program restructures benefits to make
participation in work and training programs more attractive than simply
collecting welfare. New Jersey's Reaching Economic Achievement ("REACH")
program employs widespread mandatory work requirements, together with the
services intended to make long-term employment a reality, and promises savings
through reduced case loads. We need more such experiments, emphasizing the
close tie we know exists between achievement through work and the feelings of
self-worth essential to personal economic independence.
2. Removing Barriers to Home Ownership. Historically our freedom has been
symbolized by the opportunity for every American family to own and occupy
housing. The success of our economic recovery program has caused inflation and
mortgage interest rates to decline, making it easier for more Americans to buy
homes. To make housing even more affordable, this Administration is working
with home builders and local officials to overcome government delays and
cost-adding regulations. I am also pleased that the recently passed housing
bill granted permanent authority for the FHA mortgage insurance program that
increases the availability of credit to American home buyers. The bill also
accepts my recommendations for extending the availability of rental housing
vouchers to rural as well as urban areas. These vouchers will give meaningful
choice to the individuals intended to be beneficiaries of housing programs.
Moreover, the bill endorses the concept of tenant ownership of public housing.
In order fully to empower occupants of public housing to own their homes, I will
be acting on the recommendations of the President's Commission on Privatization
to develop a proposal to sell at a discount existing public housing to the
current occupants, thus mirroring the success this approach has enjoyed in
Britain.
3. Strengthening the Family. It is one of our country's most basic
principles -- where there are strong families, the freedom of the individual
expands. The strength and stability of the American family provide essential
armor for individuals in the fight against poverty. Only a few years ago, the
American household of persons related by blood, marriage, or adoption -- the
traditional definition of the family -- seemed in peril.
I have sought to further policies that recognize the importance of a stable
family life. For example, the tax reforms of 1986 contributed to family
stability by increasing personal exemptions. Last fall I issued an Executive
order on the Family requiring that every department and agency review its
proposed activities in light of seven standards designed to promote and not harm
the family. The Offices of Management and Budget and Policy Development are
charged with the responsibility of reviewing future Executive branch activity to
ensure that it meets these standards. In addition, the Congress should require
a statement that determines the impact legislation will have on the American
family.
In March, I will receive a report from the Office of Policy Development on
the impact of existing policies and regulations on the family. At that time I
will take administrative action and propose legislation necessary to correct
policies that do not conform to the family criteria.
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4. Strengthening Communities Through Enterprise Zones. Despite the economic
prosperity enjoyed by most of the Nation, some regions remain economically
depressed. The key to revitalizing these areas is not new or expanded
government programs, but free enterprise. In 1981, I proposed the creation of
enterprise zones in which economically depressed areas could receive tax and
regulatory relief in order to expand private economic activity and opportunity
within the zones and create jobs in the process.
More than half the States have set up their own enterprise zones, even
without Federal incentives. These zones have created new jobs and spurred
billions of dollars in capital investment. Their success is testimony to the
power of this concept and is just a small indication of how much could be
accomplished if Federal incentives were added to those of States and localities.
Adding Federal incentives would make existing zones far more economically
attractive and successful and would also encourage more State and local zones.
Accordingly, I am renewing my call to the Congress to take up effective Federal
enterprise zone legislation that will complement the State programs.
5. Independence Through Excellence in Education. Individuals well instructed
in basic skills, important knowledge, sound values, and independent reasoning
are better equipped to participate in America's continued freedom and
prosperity. In 1981, however, our educational system was suffering from a
20-year decline in academic achievement. Yet spending per pupil had nearly
doubled since 1970, and Federal spending for education had increased over 3,000
percent since 1960. It has now risen to more than $20 billion. But while
funding is very important, money without genuine commitment does not lead to
educational excellence.
In 1983, the National Commission on Excellence in Education launched a
national renaissance in education by identifying problem areas and suggesting
solutions for State and local programs. In its groundbreaking report, A Nation
At Risk, the Commission recommended that the States and localities return to the
basics in curriculum and strengthen high school graduation requirements.
Additionally my Administration urged the States and localities to consider merit
pay and competency testing to improve the abilities of educators. AS a result
of the Commission's and our efforts, some school systems began to turn away from
a smorgasbord curriculum and toward a more structured, traditional program
designed to educate good citizens and to enable all students to participate in
the opportunities our society offers in abundance. But despite this progress,
we still have a long way to go. For example, only 5 percent of American 17-year
olds have advanced reading skills; an average high school student takes only 1.4
years of history. In April the Department of Education will complete its review
on progress made since the issuance of A Nation At Risk.
Last month the Secretary of Education unveiled a model curriculum in a report
entitled James Madison High School. This report outlined a year-by-year slate
of courses in English, social studies, math, science, foreign language, fine
arts, physical education, and health, and proposed that they be made graduation
requirements for all students. Four years of English would include American,
British, and world literature. Three years of social studies would include
western civilization, American history, and Principles of American Democracy,
with a hefty dose of geography throughout. This is the kind of curriculum that
will help America's young people meet the challenges of the next century.
Although a public high school curriculum must be set at the State or local
level, I hope school officials will examine the model curriculum proposed in
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James Madison High School.
In addition to "back to basics" reforms, American education would benefit
from greater parental involvement. In July 1987, as part of my Economic Bill of
Rights, I stated that we must recognize the right of parents to have their
children educated, publicly or privately, without unreasonable regulation or
interference from State or Federal governments. To that end, I am establishing
a working group in the Domestic Policy Council that will examine the parental
role in education and make recommendations for strengthening parents' rights.
Improving choice in education continues to be an important goal of this
Administration. Study after study has found that when parents have a say and
are involved in their children's education, the children do better in school.
For example, the Congress should authorize a program of giving parents a choice
of schools when providing Federal funds to benefit students.
I will continue to encourage efforts to advance parental choice through
expansion of the magnet schools program, as well as in the compensatory
education programs financed through Chapter 1 of the Education Consolidation and
Improvement Act. Compensatory education programs provide additional services to
children most in need of extra help in mastering basic skills. Enhancing
parental choice is particularly critical in the education of disadvantaged
children, who are the focus of the Chapter 1 program.
But I do not intend to stop there. Polls show that millions of Americans
would like, but do not have, the ability of choosing the education program and
institution that is best for their children. A voucher system at the State
level would empower parents. I will ask the Department of Education to develop
model voucher legislation and make it available to the 50 States, 50 that they
can implement programs that promote choice in education.
A college education is part of training for tomorrow's challenges. However,
since 1980 the cost of a college education has risen more than twice as fast as
the Consumer Price Index, and many Americans are wondering whether their
children will ever be able to go to college. Colleges set tuition, not the
Federal government. It is my hope that our Nation's universities will act to
reduce the cost of higher education without sacrificing quality in core fields.
To help college students from families of limited means, I propose an increase
in the maximum Pell Grant to $2300.
I will also ask the Congress to approve creation of College Savings Bonds.
These bonds will offer an incentive for lower- and middle-income families to
save now for the future education of their children. Interest on bonds used for
this purpose will be free from taxation.
While we do our part to help finance college education, students must do
their part and act responsibly. Most do, many do not. The taxpayers will spend
over $1.6 billion this year to pay off student defaults. To ensure that
tomorrow's students do not lose out because Federal guarantees are abused, the
Department of Education will propose a rule holding schools and colleges
accountable for excessive rates of default on Guaranteed Student Loans. Schools
in which there is a disproportionately high number of student defaults will face
the loss of eligibility for student aid.
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Other policies addressing this problem include: providing better information
to students on their duties when they borrow and when their debts are due; use
of the IRS to take money owed out of tax refunds; use of collection agencies and
litigation to go after the worst offenders; and increasing the incentives for
lenders and guarantee agencies to do a better job of collecting loans.
6. Protecting the Health of Citizens. Government promotion of public health
has enabled many individuals to participate fully in society. The Federal
government now has the opportunity to assist elderly persons who fall victim to
catastrophic illnesses and to lead the fight against diseases such as AIDS.
I am asking the Congress to enact my proposal for Federal coverage of
catastrophic health care costs incurred by Medicare beneficiaries. This
legislation, which I negotiated with the Senate, would provide affordable
catastrophic coverage.
Additionally, the Office of Personnel Management has a new proposal before
the Congress to help Federal workers deal with long-term health care needs -
both nursing home and home health care. This proposal will serve as an example
for privately funded long-term health care. No new government funds will be
needed to provide this additional insurance. It will be made available through
the already-existing life insurance program for Federal employees, with a small
additional premium from employees enrolled in the program.
We must continue to take preventive measures against AIDS while at the same
time treating AIDS victims with compassion and care. Although increased Federal
funding is not the only solution, I am proposing $1.5 billion in fiscal 1989 for
research, treatment, testing, counseling, and education, up ten-fold since 1985.
Administration scientists were centrally involved in the discovery of the Human
Immuno-deficiency Virus (HIV), developing the HIV blood antibody test and the
anti-AIDS drug AZT. And testing has been initiated in human volunteers for two
experimental AIDS vaccines.
However, the primary responsibility for avoiding AIDS lies with the
individual. A5 the Surgeon General, the Secretary of Health and Human Services,
and the Secretary of Education have been reminding us all, the best way to
prevent AIDS is to abstain from sex until marriage and then to maintain a
faithful relationship, as well as to avoid illicit drugs altogether. If the
American people follow this wise and timeless counsel, if our schools and
families and media communicate it effectively, the spead of AIDS can be greatly
diminished.
For our young people, education is crucial for AIDS prevention, and parents
have the primary responsibility for this. The Department of Education released
AIDS and the Education of Our Children last October to assist parents and
educators in this effort. This publication reflects my conviction that
educational efforts in the schools should be determined locally with deference
to parental values.
In 1987 I announced a policy of expanded routine testing, which is essential
for early diagnosis and treatment of infected individuals, for protection of the
public, and for assisting Federal, State, and local policymakers in dealing with
this epidemic. I also established the Presidential Commission on the HIV
Epidemic and will receive their final recommendations this summer.
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I have directed the Public Health Service to undertake a comprehensive
program to determine the extent of HIV infection and full-blown AIDS. We need
to know more about the dynamics of this disease, its prevalence, and its rate of
spread. Beginning in March 1988, the Centers for Disease Control will produce
quarterly reports on the progress in implementing this program.
I am directing the Food and Drug Administration to accelerate its review of
new therapeutics, vaccines, blood-screening tests, and other products to fight
this disease.
C. Freeing Individuals To Pursue Productive Endeavors
I belive all individuals should have the right to pursue their livelihood in
their own way, free from excessive government regulation and
government-subsidized competition. Greater personal autonomy, not a
paternalistic "industrial policy," is the path to greater American
competitiveness. A5 the 1987 Nobel Laureate in Economics, James Buchanan,
recently pointed out:
"We now have in place the scientific and technical tools that enable us to
make meaningful comparisons between the workings of an industry in an
unregulated, privatized setting and the workings of the same industry in a
regulated or controlled setting."
Our experience with deregulation over the past 7 years has demonstrated the
superiority of industry inspired by private initiative rather than controlled by
Federal regulations. Accordingly, I am instructing my Administration to take
all possible measures to provide individual Americans with the greatest possible
range of economic opportunities, and I invite the Congress to join me in further
deregulating our economy and in promoting free trade among free nations. Here
are nine areas on which the Administration will focus:
1. Deregulation of Key Industries. Back in 1980, I promised to get the
government off the backs of all individual Americans -- working men and women,
consumers, and businessmen and women. More than 7000 new regulations were
issued in my predecessor's last year in office. This had to stop. At my
direction, various departments have acted to reduce the scope and cost of
Federal regulation. We have accomplished a great deal. For example, we have
expedited Federal approval of experimental drugs, making them available to treat
serious or life-threatening diseases when other treatments do not work.
Individual Americans have access to more goods and are able to travel more
easily and at less cost because of deregulation. Today, for the first time in
30 years, the railroad industry is financially stable because of economic
deregulation. Shippers and consumers across the Nation benefit from real cost
reductions brought on by more competition. And, despite some problems
inevitable in a large, dynamic industry, airline consumers now enjoy about $11
billion per year in lower fares, a great number of flight options, and a safe,
efficient air transportation system unequaled by any nation. Our free market
policies have worked. Although we must continue our vigilance to assure safety,
we must not, in any form, re-regulate these industries.
The current relaxation of Federal regulation of the trucking industry has
demonstrated the tremendous potential of individual Americans. Now is the time
to complete the deregulation process. I ask that the Congress pass the
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Administration's Trucking Productivity Improvement Act of 1987 to remove the
last vestige of Federal regulation of the interstate trucking industry and
ensure that the States do not re-regulate the interstate trucking firms.
Already the progress of rail and trucking deregulation has made the Interstate
Commerce Commission an anachronism. It should be abolished as proposed in
legislation sent to the Congress last year.
This Administration has sought to promote the free flow of information among
individuals by freeing the telecommunications industry from intrusive government
control. In this "Age of Information" America risks losing its position as the
world's leader in information and telecommunications technology -- not because
we lack the talent, the resources, or the will, but because we have needlessly
regulated our telecommunications industry.
Another area in which deregulation has promoted individual freedom is the
broadcasting and cable industries. I have strongly supported the elimination of
the so-called "Fairness Doctrine" as an unconstitutional infringement upon the
freedom of the press, and I will continue to resist any legislation that
attempts to reverse this Federal Communications Commission (FCC) action. This
Administration has also insisted in the courts that the cable industry receive
the same First Amendment protection as the print media. This is particularly
imperative in light of recent technological changes in the industry. One area
where First Amendment rights have been dealt a severe blow is the recent
codification of the "cross-ownership" rule. This last minute appendage to the
Continuing Resolution prevents owners of newspapers and broadcast stations from
even seeking a waiver of the rule and thus violates their First Amendment
rights. This change could force the closing of newspapers. I strongly support
measures to repeal legislative cross-ownership restrictions that inhibit rather
than enhance the free market of ideas.
Where the government does regulate economic activity, this Administration has
sought to use market-oriented approaches. For example, in the case of airline
landing rights, it is important that individuals be able to freely transfer
rights to operate within the regulatory regime. Despite the progress we have
made on deregulation, more needs to be done. The Office of Management and
Budget therefore will continue to assure that agencies, as they develop proposed
regulations, evaluate and make public their findings concerning the effect of
proposed Federal regulations on private sector employment and commerce.
2. Reducing Government Reporting Burdens. Since 1982, my Executive Office
has actively sought to reduce the burden of Federal reporting requirements on
every individual and business. Each year we have made sizable reductions in
paperwork burdens, totalling 560 million man-hours from Fiscal Year 1981 through
Fiscal Year 1986. To improve our efforts, the Office of Management and Budget
will issue regulations that will provide a more timely and complete description
of proposed reporting burdens. Citizens will be encouraged to report back to
OMB when, in their experience, the reporting requirement is unduly onerous. The
Office of Management and Budget is systematically simplifying Federal
procurement regulations and reducing the paperwork burden imposed upon those who
want to compete for contracts with the Federal government.
Similarly, the Census Bureau has substantially improved the questionnaires to
be used in the 1990 decennial census. These improvements will reduce the
paperwork burden on all American households by using a significantly abbreviated
"short" form and by making sure that no more households than absolutely
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necessary are asked to complete the "long" form. These changes will also
improve the quality of the information collected.
3. Strengthening America's Energy Securty. The economic well-being and
future security of this Nation depend upon maintaining and building long-term
energy security and strengthening the domestic energy industry. We have made
considerable progress. While our economy has greatly expanded, we are using no
more energy and less oil than we did 10 years ago, and our strategic oil stocks
are five times higher. But more needs to be done.
In May 1987, I offered several proposals to enhance our Nation's energy
security. The windfall profit tax has raised little or no revenue since the
collapse of oil prices in 1985, yet it discourages long-term investment in new
domestic oil production. Moreover, it causes oil producers to engage in
purposeless record-keeping. It should be repealed.
Last May I signed legislation eliminating restrictions on natural gas use.
The Congress should now act to decontrol the wellhead price of natural gas and
provide for open access pipeline transportation. Both measures would lead to
less demand for imported oil. I also urge action on the Administration's
proposal to deregulate many oil pipelines.
This year the Congress will consider our recommendation concerning oil and
gas activities on the coastal plain of the Arctic National Wildlife Refuge --
the most outstanding onshore oil and gas frontier in this Nation. The
Department of the Interior would manage exploration, development, and production
of these potentially vast resources while assuring that environmental safeguards
are carefully maintained. The Congress should move expeditiously to enact
legislation implementing our recommendation.
Development of our offshore energy resources continues to be vital to our
economic and energy security. Last year we developed and implemented a 5-year
Outer Continental Shelf (OCS) leasing program. Unparalleled in its
responsiveness to State and local concerns, this program meets American's need
for domestic energy supplies while it continues to provide protection for our
important coastal resources.
Lastly, to ensure the future viability of nuclear power in the United States,
the nuclear licensing process should be reformed and the Price-Anderson Act
should be reauthorized. I urge responsible congressional action in these areas.
4. Protecting the Environment Without Unnecessary Government Intrusion. I
have always believed that this Nation does not have to choose between a clean,
safe environment and a productive economy. Of course, sometimes trade-offs
exist and choices have to be made.
America's program for environmental protection is the most comprehensive in
the world. And our environmental accomplishments are impressive. We have
dramatically reduced air pollution in our cities and restored thousands of miles
of waterways without hampering economic growth. We have cut levels of lead in
urban air by nearly 90 percent and cleaned up more than 1000 hazardous dumps and
spill sites. And we have made impressive strides in the Superfund hazardous
waste cleanup program. Work has been completed at almost 200 sites this year,
including many that posed immediate threats to human health and the environment.
This brings the total since this program began to over 100. In addition, work
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is underway at more than 700 National Priority List sites.
We have recognized the global nature of some environmental challenges and
played a leadership role in the world community to meet them. In December, I
submitted to the Senate for advice and consent to ratification an international
protocol to reduce chemical emissions that may be depleting the stratospheric
ozone layer, and I urge early congressional action on this initiative. This
protocol is the first time nations of the world have agreed to specific action
in order to address a global environmental problem.
Consistent with the report of the National Acid Precipitation Assessment
Program, I will again request congressional approval of a 5-year, $2.5 billion
program for development of innovative clean coal technologies to reduce further
acidic deposition (acid rain) emissions. The Secretary of Energy has begun
implementation of the first 2 years' funding provided in the continuing
resolution and, at my direction, has formed a panel to advise on innovative
technology projects for funding. Additionally, I have reviewed and accepted
significant new recommendations from my Task Force on Regulatory Relief that
will introduce such new technologies into the marketplace more quickly and
efficiently:
* The Department of Energy will permit preferential treatment for innovative
clean coal technology projects, recognizing the risk inherent in such
demonstrations.
*
The Federal Energy Regulatory Commission will support a 5-year
demonstration program on rate incentives for innovative technologies.
* The Environmental Protection Agency will support and encourage a variety of
means to include "bubbles" and interpollutant trading, to achieve emissions
reductions.
5. Strengthening Financial Markets. With a view to empowering people to
engage in productive activity for mutwal gain, I am taking steps to reduce
arbitrary second-guessing of markets by government regulators who can scarcely
hope to administer financial services more efficiently or fairly.
I reassert my support for the pro-competitive Financial Modernization Act of
1987, which would repeal Sections 20 and 32 of the Glass-Steagall Act
prohibiting affiliations between commercial banks and securities firms. It
would permit bank holding companies, with Federal Reserve Board approval, to own
affiliates that underwrite or deal in securities. I welcome the bipartisan
initiatives of the Senate and House Banking Committees in this area, and I
encourage the Congress to consider additional reforms that keep financial
services open and competitive and allow the development of innovative services
to benefit individuals, businesses, and government. In today's global economy,
America's financial institutions must be released from this outdated legal
framework 50 that they will be able to remain on the leading edge in the world
marketplace.
The market for corporate control is a vital component of our free enterprise
economy. This Administration opposes legislation that would have the effect of
making takerover activity more costly and difficult. Such efforts prevent the
free flow of capital and make American firms less responsive to competitive
forces, often at the expense of shareholders.
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6. Protecting Individual's Property Rights. It was an axiom of our Founding
Fathers and free Englishmen before them that the right to own and control
property was the foundation of all other individual liberties. To protect these
rights, the Administration has urged the courts to restore the constitutional
right of a citizen to receive just compensation when government at any level
takes private property through regulation or other means. Last spring, the
Supreme Court adopted this view in nollan V. California Coastal Commission. In a
second case, the Court held that the Fifth Amendment requires government to
compensate citizens for temporary losses that occur while they are challenging
such a government regulatory "taking" in court.
In the wake of these decisions, this Administration is now implementing new
procedures to ensure that Federal regulations do not violate the Fifth Amendment
prohibition on taking private property; or if they do take a citizen's property
for public use, to ensure that he receives constitutionally required just
compensation.
7. Trade and Competitiveness. To enable individuals to enjoy the benefits of
trade with other countries and to engage in productive activity without the
burdens of retaliatory trade barriers, I will continue to encourage a free and
fair trade policy. U.S. trade policy must reflect the fact that we live and
work in a global economy and that our future prosperity lies in establishing
stable, open relationships with our trading partners abroad and competitive,
unrestrained markets at home. An effective trade policy, therefore, must pursue
two interrelated goals: to extend, by example and by negotiation, the benefits
of free trade to the world economy and to enhance, through deregulation and
privatization, the free operation of the domestic economy. Only in such a
competitive environment will American business reach its productive potential
and American workers enjoy the just rewards for their labors.
Last February, I submitted to the Congress a program for making the United
States more competitive, much of which was contained in the Trade, Employment,
and Productivity Act of 1987. There were six elements to that program, each
critical to ensuring America's future economic preeminence: increasing
investment in human capital; promoting the development of science and
technology; better protecting intellectual property rights; enacting essential
legal and regulatory reforms; shaping the international economic environment;
and continuing to eliminate the Federal budget deficit by reducing domestic
spending. Taken as a whole, this program recognized that government must not
interfere with the marketplace but should ensure that the underpinnings of
American economic success, such as a well-educated work force and a
technological edge, remain strong.
Unfortunately, the Congress has failed to recognize the broad nature of the
competitiveness problem and instead has placed too much emphasis on
protectionist measures that may defer short-lived adjustment pains but harm the
future health of the economy. Protectionism serves as a hidden tax on the
American economy, crippling once prosperous industries, throwing Americans out
of work, and raising costs for consumers. American business comes to rely more
heavily on government and less on the marketplace, while Americans watch their
standard of living slip away. Despite the soothing words of its advocates,
protectionism represents the triumph of special interest over the general
interest. This Administration remains committed to working with the Congress to
draft responsible trade legislation, but if that legislation is not free of
harmful protectionist measures, I will veto it.
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The Department of Commerce is taking two important steps to boost U.S.
exports. First, it will launch Export Now, an intensive new effort, supported
by the private sector, to inform small, medium, and large businesses of the
current opportunities to expand exports. This effort will encourage American
business to take advantage of favorable exchange rates, of the market-opening
actions of this Administration, and of the support our government agencies can
give them in entering new overseas markets. Second, the Department will begin
the Malcolm Baldridge Quality Awards program to help restore "Made in the
U.S.A." as the symbol of the very best products throughout the world.
No sector of our economy would benefit more from international trade reforms
than agriculture. One of my proposals to the General Agreement on Tariffs and
Trade (GATT) for negotiations under the Uruguay Round is to eliminate worldwide
all subsidies that distort agricultural trade and all agricultural import
barriers. I propose that these subsidies and restrictions be phased out over 10
years. We are striving for an agreement on agriculture by the end of this year,
in order to hasten access of U.S. farmers to export markets now closed to them.
I also propose an international harmonization of health and sanitary measures
affecting agricultural trade with the aim of eliminating foreign countries' use
of them as disguised trade barriers.
The Nation benefits from the excellence of our scientists, engineers, and
researchers. Because it is important that business have adequate incentives to
fund research here in the United States, we are seeking enactment of a permanent
tax credit for firms engaging in reserach and experimentation to replace the tax
credit that expires at the end of this year. In addition, we are seeking
legislation that would permit the allocation of at least 67 percent of a U.S.
company's research expenses to its domestic income for purposes of the foreign
tax credit.
During this Administration, we have also shifted the focus of Federal
investment in R&D to basic research, allowing the private sector to transform
this fundamental knowledge into technologies and processes necessary to develop
products and services that meet the demands of the marketplace. Federal
investment in basic research has grown in real terms by 40 percent since 1981.
Last year, I issued an Executive order to facilitate citizens' access to such
federally funded basic research. In addition, I am asking the Congress to fund
incentives to spur American innovation. I am requesting that we now provide
monetary awards to accompany our National Medals of Science and Technology. In
addition, I am proposing a new Thomas A. Edison Prize that will challenge
Americans from all walks of life to use technology to improve the quality of
life in the United States and the world.
This Administration has also proposed construction of a Superconducting Super
Collider, which is essential to continued U.S. leadership in high-energy physics
and America's scientific and technological competitiveness. Presently, the
Department of Energy is studying locations in seven States, and late this summer
the Secretary of Energy will select the preferred site for the project. We hope
that out allies will share the cost of construction and operation of this
facility, as well as the benefits it will afford for new discoveries in basic
physics.
The freedom to compete in the marketplace is essential to our concept of
liberty. Our antittrust statutes were intended to protect this freedom. Sadly
they have been transformed into weapons that competitors use against each
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other and tools for inappropriate government interference in the marketplace.
Additionally, American firms, find themselves at a competitive disadvantage with
foreign competitors because of the burden and uncertainty fostered by some
outdated aspects of our Nation's antitrust statutes. Therefore, I again urge
the Congress to adopt my proposed antitrust reforms, particularly those that
remove disincentives to pro-competitive mergers. In addition, I am asking the
Congress to amend the National Cooperative Research Act to permit some types of
joint production ventures. While retaining the protection of the antitrust
statutes, this change will help U.S. manufacturing firms develop innovative ways
to produce goods and services at competitive prices both here and overseas.
For example, the domestic automobile manufacturing industry has made major
strides in improving its competitive position, producing higher quality and more
fuel-efficient vehicles. Despite these gains in fuel efficiency, the industry
remains restricted by current law, which requires automobile manufacturers to
"balance" their line of automobiles to include cars and light trucks that meet
corporate average miles-per-gallon fuel economy (CAFE) standards. These
standards make it more difficult for U.S. firms to produce automibles that
consumers want to buy. This Administration has proposed the Motor Vehicle
Information and Cost Savings Act of 1987 to eliminate this requirement for
future model years. This legislation would remove a competitive disadvantage
for American firms at a time when the purpose of the CAFE standard has been
largely realized and would remove the incentive for domestic auto manufacturers
to export U.S. jobs.
Another factor affecting U.S. competitiveness is our civil justice system.
During the past 2 years, 47 of the 50 States have enacted tort reform
legislation. We strongly supported many of these State initiatives, and we will
work closely with the States to achieve further reforms wherever possible. In
addition, the Administration is encouraged by the progress of the legislation to
reduce the costly product liability insurance spiral and will work with the
Congress towards the enactment of effective and meaningful reform of product
liability law.
Key to promoting investment in ideas, innovation, and research is ensuring
that those investments will be protected. Accordingly, I have proposed as part
of my superconductivity legislation to raise legal protection for products
resulting from patented processes and to prohibit foreign nations from using the
Freedom of Information Act to acquire intellectual property developed by the
U.S. Government. Additional measures planned include joing the Berne
Convention, which provides international protection for intellectual property,
demanding adequate protection of intellectual property rights when negotiating
treaties, and pushing hard in the GATT Round for high standards for intellectual
property protection worldwide.
8. Free Trade with Canada. On January 2 Prime Minister Mulroney and I signed
a Free Trade Agreement that, when enacted, will mark the beginning of a
remarkable new era. It eliminates all tariffs between the United States and
Canada over the next 10 years, promotes free trade in energy, and greatly
reduces restrictions on investments. The agreement goes beyond most trade
agreements and covers services and investment. It is a "win-win" agreement for
both the United States and Canada. Moreover, it sends a signal to the rest of
the world: protectionism is not inevitable. Rather, with the political will and
commitment, all nations can promote freer trade to the benefit of each and every
citizen. I will soon transmit a bill to implement this agreement and I urge
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prompt enactment to ensure that the agreement takes effect on January 1, 1989.
In November, the United States Trade Representative, on my behalf, signed a
framework agreement with Mexico for discussions on trade and investment. This
framework agreement is an important step forward in our bilateral trade
relationship that will enable us to work together to address problems, reduce
barriers and, thus, increase trade and investment between our two countries.
9. Freeing the Individual to Work. Few laws that a government may impose are
more injurious to liberty than restrictions on the right to work, as outlined in
my Economic Bill of Rights. Today, we are in the 6th year of an economic
recovery that has created 14.5 million jobs. In order to continue and to build
on that record of growth, we need policies that recognize the changing nature
and changing needs of the work force.
These policies include enhance training for dislocated workers, so that they
are able to adjust to a world requiring new and different skills. Our proposed
Worker Adjustment Program will address this need in a comprehensive way while
increasing the role of States and localities in determining how these funds are
best spent. In addition, we are preparing to give States and localities the
flexibility to provide remedial training to disadvantaged youth. For thousands
of low-skilled young people, this initiative holds the potential to provide a
way out of poverty and into a job.
Indeed, the changes in our work force present other challenges as well. More
people are working than ever before in our history. There is a fuller work
force participation across all sectors, and more women are working than ever
before. While this has helped power our tremendous growth, it has also created
tension between demands of work and demands of child-rearing. We need to work
with State and local governments and the private sector to identify and develop
effective solutions, consistent with our efforts to strengthen the family, to
foster practical, voluntary ways to ease this tension.
Several threats to our continued job growth can be found in a range of
initiatives pending in the Congress, such as employer-provided health care and
health insurance; parental leave; advance notification of plant closings; risk
notification; an increase in the minimum wage; labor protective provisions; and
a ban on employers using polygraphs to prevent theft. Many of these initiatives
have been called "mandated benefits," but a more accurate description would be
"mandated costs" or "mandated unemployment." Such mandated costs are
particularly harmful to our Nation's small businesses, which are leading the way
in job creation in our economic recovery. While many of the objectives sought
by such legislation are laudable, they are not the proper subject for Federal
mandates.
While well intentioned, the added employment costs would reduce job
opportunities, lower wages generally, weaken economic growth, and hinder our
competitiveness in world markets. In short, they are efforts to make
individuals and companies pay for new government programs, mandated by the
government but implemented by the private sector. Rather than forcing employers
to provide such coverage, with possible serious adverse side effects for some
workers, these decisions should be left to voluntary negotiation between
employers and employees.
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The adoption of "comparable worth" pay standards, another intrusive form of
government intervention into the labor market, has also been proposed. The
objective is not to provide equal pay for equal work, a concept I fully support
and which I enforce as the law of the land. Rather, "comparable worth"
proposals seek to determine the worth of completely different jobs and then
empower government panels to assign "fair" and "comparable" wages. Proposals
that would establish panels of "experts" to determine how much workers can earn
would create the kind of planned economy that has stifled economic growth in
other parts of the world. Such wage fixing completely ignores the fact that in
a free enterprise economy market forces should determine wages.
We should seek to eliminate existing barriers to employment. For example,
when I took office I inherited a rule that, for over 40 years, prohibited
individuals from working in their homes to produce knitted garments such as
sweaters, caps, and scarves. In 1984, we dropped that rule and permitted
employers to hire home workers after obtaining a certificate from the Department
of Labor authorizing such employment, thus ensuring that the home workers
receive the protection of the Fair Labor Standards Act. The restrictions still
apply to six other categories of products, and the Department of Labor will be
working to extend the certification procedures for five of the six remaining
home work industries.
Another proposal in the Congress would raise the minimum wage, thereby
creating additional barriers to employment. Today most people who work at the
minumum wage are teenagers and others with limited experience who need these
jobs to begin their climb up the economic ladder. Few are heads of households.
Higher minimum wages will surely force young and inexperienced workers into
unemployment. We should permit a special minimum wage differential for
teenagers that would increase employment, on-the-job-training, and future wage
growth for the least-skilled workers. Reform of other Federal wage statutes,
such as Davis-Bacon, is also needed.
We should avoid so-called anti-"double breasting" laws that would bar firms
with union labor from having independent affiliates without union contracts.
Anti-double breasting laws reduce job opportunities by raising labor costs and
should be left to negotiation between employer and employee.
D. Empowering Individuals by Opening up New Areas for Human Endeavor
One enduring legacy of American frontier society has been a love of bold
challenges and wide open vistas. Some 30 years ago we crossed a "new frontier"
with a shot into space. Today we continue to face new opportunities and new
challenges in opening a limitless universe beyond our tiny globe to exploration
and commercial enterprise. But here on Earth as well, whole new sectors of
discovery and productivity lie waiting for development through individual
creativity and initiative.
1. Privatization of Government Activities. Over time, government has
accumulated numerous commercial operations, many of which could be performed
more efficiently by the private sector. Where such opportunities exist to
provide better services at lower cost, we will seek to transfer such services
and operations to the most efficient enterprises. This does no imply the
abrogation of government responsibility for these services. Rather, it merely
recognizes that what matters the most is the cost and quality of the service
provided, not who provides it. In addition, there is an important moral
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consideration -- individual liberty would be enhanced and the debilitating
effect of public sector growth on human freedom would be reduced.
Even now, government relies extensively on the private sector to provide
basic government services in many key programs: the G.I. Bill, Medicare,
Medicaid, student loans, food stamps, and many other programs. Further, the
government benefits from private sector assistance in disbursing funds
electronically, assessing credit worthiness of loan applicants, servicing and
collecting payments due the government, and relying on finance accounting
systems from the private sector to bring about an extensive upgrading of
Executive branch financial management throughout the government. Thus
privatization can make government operations more efficient and at the same time
provide more convenient service to our citizens.
The Administration sold over $5 billion in government loans to private
investors last year, with plans to sell an additional $4 billion in government
loans this year. Additionally, we sold the government-owned freight railroad,
CONRAIL, to private investors at a price tag of almost $2 billion.
As part of my Economic Bill of Rights, I established the President's
Commision on Privatization to accelerate our program of placing greater reliance
on the private sector. In its interim report covering government housing
programs the Commission recommended expanded use of housing vouchers, tenant
management of public housing projects, and sales of public housing units to
tenants. The Congress has already enacted a major housing bill that endorses
housing vouchers and facilitates the Administration's efforts to encourage
tenant management and public housing ownership. Similarly, the Commission has
endorsed the sale of government loan assets. The Commission's final report is
expected in March and will cover many more opportunities, including prison
construction, military commissaries, AMTRAK, Naval Petroleum Reserves, and urban
mass transportation. After a careful review of these proposals, legislation
will be developed to implement the most promising proposals.
To pursue administrative measures within the Executive branch and implement
the findings of the Commission on Privatization, I have created an Office of
Privatization within the Executive Office of the President. I have given it the
responsibility to investigate and propose privatization opportunities that can
be included in my recommendations for the Fiscal Year 1989 Budget.
I will recommend that a comprehensive study be conducted to measure the
likely benefits that would occur if we permit the private sector to perform some
functions now performed by the United States Postal Service and other government
entities.
I will also recommend a series of pilot projects to determine if
privatization is the best way to go in other government programs, including
operation of minimum security Federal prisons, Federal prison industries,
regulatory audits by the U.S. Customs Service, management of Federal multipleuse
lands by public and private groups, and waste water treatment facilities funded
by Federal grants.
I am further recommending the direct privatization of all or some of several
existing government programs where the benefits of privatization are believed to
be significant or where studies have already been completed. Included in this
category are the Naval Petroleum Reserves, AMTRAK, Federal Crop Insurance,
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arbitration of tax disputes, government employee housing, the Railroad
Retirement Board, the National Finance Center, the National Technical
Information Service, the Alaska Power Administration, and the collection of
overdue loans to the Federal government. I will also ask for substantially
expanded authority to allow individuals to use their private sector credit cards
to pay money owed to the government.
In addition, I have recently promulgated an Executive order to foster greater
contracting out of services currently provided by the government to private
providers, many in America's vital small business community. Study after study,
many conducted by the General Accounting Office, demonstrate that savings of
between 30 to 40 percent can be achieved by contracting out government work to
private business. If all agencies took advantage of contracting-out
opportunities, the total savings would amount to $7 billion per year.
2. New Opportunities in Space. Nearly 2 decades ago, with courage and bold
technological innovation, America pushed back the frontier of space by landing a
man on the moon and safely bringing him back. This breakthrough created untold
opportunities for scientific discovery and commerce and advanced mankind's
age-old dream of exploring space beyond its planetary home.
If America is to continue its leadership in space, we must now forge ahead,
exploring space's vast frontier and expanding our free enterprise system to
Earth's orbits and beyond. And we must build our long-term space future on a
sound foundation that will ensure reliable and economical access to and use of
outer space.
I recently adopted an enhanced comprehensive national space policy. This
policy reaffirms America's commitment to space leadership as a fundamental
national objective and recognizes the importance of both private sector and
governmental space activities in achieving critical national goals. And while
acknowledging the importance of returning the Space Shuttle to safe, reliable
operations, it also stresses that access to space, 50 vital to America's
security and prosperity, must never be limited to any single system.
As a matter of special note, my policy also specifically recognizes the
importance of extending the reach of American private commerce to space and
establishes goals to guide both civil and national security space efforts in
achieving cost-effective, resilient, and reliable means of access to space.
And I am no less deeply committed to the long-range goal of expanding human
presence and activity beyond earth orbit and into the solar system, and I invite
the Congress to join with me in endorsing and supporting this new long-term
goal.
As the first step, I have directed the National Aeronautics and Space
Administration to begin a systematic development of space technologies called
Project Pathfinder, which will aid us in deciding where this new adventure
should take us, and when. The funding proposed for Fiscal year 1989 is $100
million.
Second, I am asking the Congress to maintain our strong national commitment
to a permanently manned space station. The Fiscal Year 1989 Budget request
includes $1.0 billion to achieve this goal, along with a request for a 3-year
appropriations commitment from the Congress totaling $6.1 billion.
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Third, I will soon announce a major Commercial Space Initiative that includes
administrative and legislative action to nurture entrepreneurship in space. By
taking advantage of the private sector's innovative excellence, we can maintain
and extend America's leadership in space.
My initiative will have three goals: (1) promoting a strong commercial
presence in space -- we need the private sector to begin to lay the
infrastructure necessary for research and manufacturing in space; (2) assuring a
highway to space by building on my previous efforts to promote a strong private
expendable launch vehicle industry; and (3) building a solid technology and
talent base. The engineers and scientists who will be working in space are in
school now. We must give them the tools and the enthusiasm to do the job well.
E. Empowering the People to Participate in the Political Process
Political enfranchisement in America has evolved in the direction of a more
participatory republic. Today any legislation in this area should open up more
participation in the political process.
1. Removing Government Interference with the Political Process. The right to
free speech and the right to participate in the democratic process are two of
our most fundamental freedoms. In Buckley V. Valeo, the Supreme Court held that
limits on how individuals spend their own resources in the political process can
violate the First Amendment. This is a sound principle. We should make sure
"campaign reform" will not have the effect of reducing popular participation in
the political process or impairing constitutional rights. Today, there are
proposals to restrict certain parts of our electoral process. A more beneficial
reform would be the requirement of full disclosure of all campaign
contributions, including inkind contributions, and expenditures on behalf of any
electoral activities, including those in the context of membership
communication.
2. Protecting Civil Servants from Political Pressure. The Hatch Act was
passed in 1939 in response to scandals involving the administartion of funds in
New Deal programs. It prohibits Federal civil servants from taking part in
certain partisan political activities, such as campaigning for public office,
participating in party management, or raising political funds. The Clay
Amendments in the Congress would severely erode these prohibitions. Although
advanced in lofty terms --- "the right of government workers to participate more
fully in the political process" -------- their effort would be to politicize the civil
service and reduce public faith in government. Federal workers already enjoy
their democratic right to vote and to express their political views in a wide
variety of other ways.
We do not want to risk a situation in which Federal employees come to believe
that their advancement depends on espousing particular views, perhaps the
political views of their superiors. Neither should electoral campaigning be
allowed to mar cooperation between the political appointees of the President and
the civil service establishment, a cooperation crucial to good government. As I
have said in the past, the Hatch Act should not be changed or repealed.
3. Improving the Civil Service. The past 7 years have witnessed an
increasing commitment by the Nation's Federal civil service to quality in their
work and pride in their performance. The abilities of this work force, from the
most recently hired clerical worker to the most senior member of the
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managerial corps, are ready not only to continue the effort to serve the
American people, but to take that service to new levels of excellence.
At present, however, the Federal civil service is overregulated by a system
that discourages employee initiative and hamstrings government managers with
thousands of pages of restrictive rules and regulations. With the major reforms
encompassed in my proposed Civil Service Simplification Act, we can provide
substantial incentives for top performance, introducing into our Federal
government the classic productive values of the American workplace:
entrepreneurial freedom and reward for hard work.
VI. TO SECURE THE BLESSINGS OF LIBERTY
It was the need to secure inalienable, God-given rights from oppression that
moved our forefathers to institute a new government in America. Among these
individual rights, Jefferson wrote, were "Life, Liberty and the pursuit of
Happiness." But as the Founders of our Republic made clear in drafting a new
Constitution 11 years later, their intention was not only to secure liberty but
the blessings of liberty as well. To attain these blessings would mean
cultivating the values that sustain a free people. George Washington advised
our Nation in his Farewell Address,
"Of all the dispositions and habits which lead to political prosperity,
religion and morality are indispensable supports. In vain would that man claim
the tribute of patriotism who should labor to subvert these great pillars of
human happiness, these firmest props of the duties of men and citizens. The
mere politician, equally with the pious man, ought to respect and to cherish
them. A volume could not trace all their connections with private and public
felicity."
Following our first President's good counsel, I am leading my Administration
in efforts to shore up the moral foundations of our individual freedom:
A. Protection of the Unborn
None are more powerless than the unborn. Since legalization of
abortion-on-demand in 1973, there have been an estimated 21 million abortions in
this country. I am committed to reducing the number of abortions in this
country and reaffirming life's sacred position in our Nation.
The Congress should pass expeditiously my Human Life Bill. The first section
of the bill contains a finding that abortion takes the life of a human being and
that Roe V. Wadewas wrong not to recognize the humanity of the unborn child.
The second section would enact, on a permanent and government-wide basis, the
Hyde Amendment restriction prohibiting Federal dollars from going for abortion
unless a mother's life is endangered. In addition, the Congress should pass the
Human Life Amendment.
At my direction, the Department of Health and Human Services is about to
issue regulations prohibiting the use of Title X funds (approximately $140
million) for any program that performs abortion, counsels for abortion, or
promotes abortion through lawsuits, lobbying, or other such activities. The
regulations also require that Title X programs separate themselves from programs
that engage in abortion activities. It is clear from the legislative record
surrounding the passage of Title X that its purpose, far from promoting
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abortion, was one of offering an alternative to abortion and indeed reducing the
number of abortions. For some time the program as enforced was standing its
essential purpose on its head, effectively promoting abortion instead of
reducing the incidence of abortion as intended by the Congress.
Another loophole often used to circumvent prohibitions on using Federal funds
for abortions is the use of psychiatric recommendations. Currently the law
allows for Federal funding only when an abortion is necessary to save the life
of the mother. This law reflects the consensus that abortion may be considered
when there is a physical threat to the mother. I am directing the Secretary of
Health and Human Services to issue regulations that reflect this consensus and
make it clear that only when there is physical danger to the life of the mother
can Federal funds be used for abortion.
In August 1987 I formed an Interagency Task Force on Adoption that delivered
its final report to me on November 13. I will act to implement the Task Force
recommendations and propose legislation where necessary. Each year over 140,000
children are adopted, yet thousands of childless families still wait for
children to adopt. There are 36,000 children awaiting adoption, of which about
60 percent are "special needs" children. Many have physical or emotional
handicaps, belong to sibling groups, or are older children; they are generally
more difficult to place.
This Administration will also work with the States to encourage model
legislation that promotes adoption. California's Pregnancy Freedom of Choice
Act, for instance, allows the State to reimburse licensed nonprofit maternity
homes for the costs of maternity care and other pregnancy services. Michigan
contracts out special needs adoption to private agencies, reimbursing them for
the full cost of adoption services up to $10,000. These are exemplary efforts
to provide families for children in need of parental love and care.
B. Religious Liberties
The First Amendment protects the right of Americans to freely exercise their
religious beliefs in an atmosphere of toleration and accommodation. As I have
noted in the past, certain court decisions have in my view interpreted the First
Amendment 50 as to restrict, rather than protect, individual rights of
conscience. I have repeatedly affirmed my belief that school prayer on a
voluntary basis is permissible, indeed desirable, in the public school. In my
State of the Union addresses in 1986 and 1987, I expressed my support for a
constitutional amendment that would make it clear that the Constituion does not
prohibit voluntary prayer in public schools.
One distrubing development in this area of the law has been the exclusion of
religiously affiliated organizations from federally funded programs. A recent
lower court decision held unconstitutional my Adolescent Family Life Program
because the program included religious organizations among those carrying out
its implementation. That decision, if upheld, would effectively require the
government to discriminate against religious charitable organizations, even when
their participation in a program only serves to further its legitimate secular
purpose. The Department of Justice is appealing this ruling that I believe to
be inconsistent with the First Amendment. Our forefathers came to this land in
large part to secure the rights to freedom of religion and individual conscience
that they would later establish as bedrock provisions of our Constitution. We
must avoid such perversion of the First Amendment. Rather, as we prepare for
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the 21st century, we must continue to foster the free exercise of religion that
our forefathers understood would provide the moral foundations for American
society.
CONCLUSION
These then are the legislative and administrative policies that the
Administration will pursue in furtherance of the six purposes for which the
American people first ordained and established our Constitution. They have been
carefully chosen. For obviously not every policy that a President or a Congress
may put forward is compatible with out Constitution, even though that policy
might be popular. In order to secure the liberty of individuals and political
minorities, the Constitution places a number of carefully considered
restrictions on the Federal government. The Congress does not, for example,
possess a general legislative power, nor the President the power of decree. The
Framers proscribed both as inconsistent with limited, consitutional government.
Thanks in large measure to their wisdom, America has enjoyed the blessings of
liberty for 2 centuries. It is my belief that the policies presented in this
message will contribute to the continuing restoration of the Federal government
to a sound constitutional footing and thus preserve these same blessing for our
posterity in the 21st century.
Ronald Reagan
The White House,
January 25, 1988.
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NATIONAL SECURITY COUNCIL
October 16, 1989
NOTE FOR CHRISS WINSTON
FROM: PHILIP HUGHES Philip
SUBJECT: Draft Departure Statement for
Spanish President Gonzalez'
Visit
Attached is a State Department draft of
the President's departure statement for
the visit on Thursday of Spanish PM
Felipe Gonzalez. On checking, I found
that the draft arrived while I was out
of town at the end of last week. I did
not see it or know it was here on my
return. I apologize for the delay in
getting it to you.
8923025
United States Department of State
Washington, D.C. 20520
8106
October 6, 1989
LIMITED OFFICIAL USE
MEMORANDUM FOR BRENT SCOWCROFT
THE WHITE HOUSE
Subject: Official Working Visit of Spanish President Gonzalez:
Proposed Departure Statement
The Department is forwarding a proposed departure statement
for the President's use during the Gonzalez visit, as requested
in the NSC memo of September 16.
J Executive Stapleton Stapleton Secretary Roy Ray
Attachment:
Proposed departure statement
LIMITED OFFICIAL USE
LIMITED OFFICIAL USE
OFFICIAL WORKING VISIT BY PRESIDENT GONZALEZ OF SPAIN
STATE DEPARTMENT PROPOSED DEPARTURE STATEMENT
I am delighted to welcome President Gonzalez and the
Spanish delegation to the United States for his first official
visit to Washington since 1983. Building on our discussion at
the NATO Summit this May in Brussels, President Gonzalez and I
have just concluded a very warm and productive set of meetings.
Today we discussed a broad spectrum of bilateral, regional
and global issues. We reviewed in depth major international
developments, concentrating in particular on the need for the
West to actively support the historic reform process underway
in Eastern Europe, and on the importance of democratization in
Latin America, an area of special interest to both Spain and
the United States.
We also discussed progress in arms control negotiations,
particularly those on conventional forces in Europe. At the
same time, we underscored the importance of maintaining strong
mutual defenses in the NATO Alliance.
We exchanged views on the serious challenge the drug menace
represents internationally, to consumer and producer nations
LIMITED OFFICIAL USE
LIMITED OFFICIAL USE
-2-
alike, and agreed on the need to support Colombian President
Barco in his courageous struggle against narco-terrorism.
In our talks on U.S.-European relations, I congratulated
President Gonzalez on Spain's successful first turn in the
rotating presidency of the European Community, which concluded
in June. Our dialogue with the European Community, already
good, deepened during Spain's recent presidency. I underscored
that we want to work in cooperation with Spain and its EC
colleagues to ensure that the European Single Market in 1992
brings our economies even closer together.
President Gonzalez and I agreed that our bilateral
relations are in excellent shape. At the same time, we have
undertaken to encourage more frequent high-level exchanges. We
agreed to work together to ensure the smooth implementation of
the new bilateral defense agreement which entered into force
this spring. We also pledged close collaboration in the
celebration in 1992 of Christopher Columbus' voyage of
discovery--a very special event for Europe and the Americas,
which will be marked by the World's Fair in Seville, Expo 92.
In sum, I am pleased to say that the U.S.-Spanish
partnership is healthy and growing stronger.
LIMITED OFFICIAL USE
Oct. 18, 1989
INFORMATION
MEMORANDUM FOR THE PRESIDENT
Through:
CHRISS WINSTON
From:
MARK DAVIS
Subject:
Prime Minister Gonzalez Departure Statement
SUMMARY: You will give brief remarks at the departure of Prime
Minister Felipe Gonzalez from the South Portico on Thursday, Oct.
19, at 1:15 p.m. Your remarks are on cards.
DISCUSSION: This speech takes the opportunity to focus on your
recent initiatives in Eastern Europe -- an emphasis that
coincides with Spain's new, broader European outlook. It
discusses the U.S. grants to Poland, and our decision to grant
Hungary Most Favored Nation Status. It also touches on U.S.-
Spanish cooperation in strengthening the forces of democracy in
Latin America, developing an arms-control agenda for NATO, and
backing President Barco and the people of Colombia.
Davis/Martin
Oct. 18, 1989
Title: Spain
Draft: Two
PRESIDENTIAL ADDRESS:
GONZALEZ DEPARTURE, SOUTH PORTICO
THURSDAY, Oct. 19, 1989, 1:15 p.m.
It is a pleasure to have Prime Minister Gonzalez and the
Spanish delegation as our guests in the United States. Our
discussions at the NATO summit in May were an excellent start to
a dialogue we have continued in Washington. As before, our talks
have been friendly and constructive -- another sign that our
bilateral relations -- our partnership -- is healthy and growing
stronger.
We discussed, extensively, the ways in which the West can
best support the historic reforms transforming Eastern Europe,
especially in Poland and Hungary, and our hope that these reforms
will lead to a Europe whole and free.
I informed Prime Minister Gonzalez of the steps the United
States has taken to support this economic reform and democratic
change in Poland and Hungary. I told him about my request that
Congress approve $200 million in economic stabilization grants to
assist Poland in implementing its bold new reform program -- the
U.S. contribution to Poland's $1 billion request. I hope that
all of the major industrialized democracies will also contribute
to this request.
I also explained that the United States will soon be
extending Most Favored Nation status to Hungary on a continuing
2
basis -- making it the first Eastern European nation to ever
receive such treatment. This will strongly encourage trade and
investment in Hungary.
Prime Minister Gonzalez and I agreed that the futures of
Poland and Hungary depend on sustained Western action,
coordinated with the I.M.F. and the World Bank as part of a long-
term economic recovery program. We discussed the important
progress made by the 24-nation "Group for Economic Assistance to
Poland and Hungary," which has already met three times under the
chairmanship of the EC Commission, and has encouraged the
commitment of hundreds of millions of dollars in new assistance
to both countries. We also agreed that Spain's successful
transition to a strong and flourishing democracy makes it a
powerful model for, Eastern European countries now attempting
similar transformations.
We also reviewed ways in which we can help sustain the
growth of democracy in Latin America -- an area of traditional
concern to both our nations.
And we exchanged views on the serious international
challenge the drug menace represents to consumer and producer
nations alike. And we agreed on the need to give President Barco
and the brave people of Colombia our full backing in their
struggle against narco-terrorists.
Our talks also included progress in arms-control
negotiations, while underscoring the need to keep our mutual NATO
defenses strong.
3
Throughout our discussions, there was a shared belief that
Spain is emerging with a new vitality, not just in Europe, but on
the world scene. In supporting democratic change in Eastern
Europe, Latin America and elsewhere, I believe Spain can play a
unique role, for Spain provides the world with a very special
example.
Prime Minister Gonzalez, you have said that your nation is
both a very old country, and a very young country -- an
authoritarian government reborn as a constitutional democracy; a
sheltered, state-dominated economy now reoriented to the market,
and prospering. It is no exaggeration to say that Spain today is
living a Renaissance of liberty, prosperity and culture.
It now seems that the role of Spain, as the mother of so
many nations, provides a model of political and economic reform -
- a move away from the dead hand of state control -- toward
greater freedom, opportunity and advancement.
Prime Minister Gonzalez, I commend you for your idealism. I
value your partnership. And I look forward to working with you
in the years ahead.
Mister Prime Minister, thank you for your visit to these
shores and may you have a safe journey home.
#
#
#
Concentrate
DEPARTURE STATEMENT
on this
FOR OFFICIAL WORKING VISIT OF PRIME MINISTER GONZALEZ diaft,
I am delighted to welcome Prime Minister Gonzalez and the Spanish
delegation to the United States for his first official visit to
Washington since 1983. Building on our discussion at the NATO
Summit this May in Brussels, Prime Minister Gonzalez and I have
just concluded a very warm and productive set of meetings.
We reviewed in depth major international developments,
concentrating in particular on the need for the West to actively
support the historic reform process underway in Eastern Europe,
and on the importance of sustaining democracy in Latin America,
both areas of special interest to Spain and the United States.
We particularly agreed that the reforms currently underway in
Poland and Hungary were encouraging and worthy of our strong
support.
I discussed with Prime Minister Gonzalez the steps the United
States has taken to support economic reform and democratic change
in Poland and Hungary and briefed him on my request that Congress
approve a $200 million economic stabilization grant to assist
Poland in implementing its bold new reform program. I explained
that this would be the U.S. contribution to the $1 billion the
Poles have requested. I expressed the hope that Spain and the
2
other major industrialized democracies would make important
contributions to this fund, since the concept can be effective
only if the fund is fully financed. I also explained that the
U.S. soon will be granting Hungary permanent Most Favored Nation
status, which will strongly encourage increased trade and
investment as Hungary moves further toward market reforms.
Prime Minister Gonzalez and I agreed that the futures of Poland
and Hungary depend on concerted and sustained Western action,
coordinated with the IMF and World Bank as part of a long-term
economic recovery program. We discussed the important progress
made by the 24-nation "Group for Economic Assistance to Poland
and Hungary," which has met three times already under the
chairmanship of the EC Commission and has encouraged the
commitment of hundreds of millions of dollars in new assistance
to both countries.
Prime Minister Gonzalez and I also discussed other ways the
Western democracies can support the process of democratic change
in Eastern Europe. I believe that Spain can play a unique role
as an example of a strikingly successful transition from
authoritarian rule to democratic pluralism and from a sheltered,
state-dominated economy to one that is fully market-based and
internationally competitive.
3
We also discussed progress in arms control negotiations, at the
same time underscoring the importance of maintaining strong
mutual defenses in the NATO Alliance.
We exchanged views on the serious challenge the drug menace
represents internationally, to consumer and producer nations
alike, and agreed on the need to support Colombian President
Barco in his courageous struggle against narco-terrorism.
President Gonzalez and I agreed that our bilateral relations are
in excellent shape. I am pleased to say that the U.S. -Spanish
partnership is healthy and growing stronger, and that Spain and
the United States are working intensely in both Latin America and
Eastern Europe to promote our common values of political
pluralism and economic freedom.
I
Davis/Martin
Oct. 16, 1989
Title: Spain
Draft: One
PRESIDENTIAL ADDRESS: GONZALEZ DEPARTURE, SOUTH PORTICO
FRIDAY, Oct. 20, 1989, 1:15 p.m.
Thurs, Oct. 19
It was a pleasure to have Prime Minister Gonzalez and the
Spanish delegation as our guests in the United States. Our
were
discussions at the NATO summit in May was an excellent start to a
dialogue we have continued in Washington. As before, our talks
have been friendly and constructive -- another sign that our
bilateral relations -- our partnership -- is healthy and growing
stronger.
We reviewed recent international developments: ways in which
we can help sustain the growth of democracy in an area of
traditional concern to both our nations -- Latin America. We
also discussed how the West should actively support the historic
reforms transforming Eastern Europe, especially in Poland and
Hungary.
I informed Prime Minister Gonzalez of the steps the United
States has taken to support this economic reform and democratic
change in Poland and Hungary. I briefed him on my request that
Congress approve a $200 million economic stabilization grant to
assist Poland in implementing its bold new reform program -- the
U.S. contribution to Poland's $1 billion request. I hope this
Spain and
contribution is matched by all of the major industrialized
democracies.
2
And the United States will also lend a hand to the people of
Hungary. As Hungary moves toward market reforms, the United
by granting Most Faured nation status.
States will strongly encourage trade and investment in that land.
Prime Minister Gonzalez and I agreed that the futures of
Poland and Hungary depend on sustained Western action,
coordinated with the I.M.F. and the World Bank as part of a long-
term economic recovery program. We discussed the important
progress made by the 24-nation "Group for Economic Assistance to
Poland and Hungary," which has already met three times under the
chairmanship of the EC Commission, and has encouraged the
commitment of hundreds of millions of dollars in new assistance
to both countries.
We exchanged views on the serious international challenge
the drug menace represents to consumer and producer nations
alike. And we agreed on the need to give President Barco and the
brave people of Colombia our full backing in their struggle
against narco-terrorists.
progress
Our talks also included recent developments in arms-control
negotiations, while underscoring the need to keep our mutual NATO
defenses strong.
But throughout it all, there was a shared belief that Spain
is emerging with a new vitality, not just in Europe, but on the
world scene. In supporting democratic change around the world, I
believe Spain can play a unique role, for Spain provides the
world with a unique example.
3
Prime Minister Gonzalez, you have said that your nation is
both a very old country, and a very young country -- an
authoritarian nation reborn as a constitutional democracy; a
sheltered state-dominated nation reoriented to the market. It is
not exaggerating to say that Spain today is living a Renaissance
of liberty, prosperity and culture.
It now seems that the role of Spain, as the mother of SO
many nations, provides a model of political and economic reform -
- a move away from the dead hand of state control -- toward
greater opportunity and advancement. Perhaps a new association
Today,
once on empere of armadas Share
will flourish between Spain and the Hispanic New World; not an.
empire of armadas, but a commonwealth of culture, commerce and
democratic ideals.
Prime Minister Gonzalez, you were a young man when you came
to office, very much like another young man in America -- John F.
Kennedy -- who, like you, also sought to spark a peaceful
revolution of hope. I commend you for your idealism. I value
your partnership. And I look forward to working with you in the
years ahead.
Mister Prime Minister, thank you for your visit to these
shores and may you have a safe journey home.
#
#
#