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Originally Processed With FOIA(s): FOIA Number: S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Grant, Mary Kate, Files Subseries: Subject File, 1988-1991 OA/ID Number: 13881 Folder ID Number: 13881-019 Folder Title: Leaders [Magazine], 3/30/90 Stack: Row: Section: Shelf: Position: G 19 2 7 6 212/593-5194 - FAX to Henry Dormann FACSIMILE TRANSMITTAL SHEET NUMBER OF PAGES INCLUDING COVER 5 DATE 4/2/90 TO MR. HENRY DORMANN FAX NUMBER 212/593-5194 OFFICE NUMBER COMMENTS Please deliver ASAP. Thanks! Any problems, Kate please call FROM mary M.K. grant GRANT in Spuchwriting OFFICE NUMBER 202/456-2930 Grant/Nappo Draft one March 22, 1990 A:leaders PRESIDENTIAL ARTICLE: LEADERS MAGAZINE TITLE? We are a world made up of families, with no two families alike. And yet there are dreams that we, as members of families, all share. The hopes that any one of us has had as a parent are the hopes of all parents: that our children grow up in a safe environment with a good education and that they be given the same opportunities as any else's children. That they live a life of values -- a life of which they can be proud. We are also a world made up of communities, thousands upon thousands of religious, ethnic, social, business, labor and neighborhood organizations, all of them vital to our future together. With God's help, each of us must chart a course for our own lives and the lives of our children. But working through our own families and communities, we can change things for the better -- and in the process, change our nations and our world for the better. There is no problem in the world that is not being solved somewhere. Everywhere, citizens are facing the challenges that are threatening our societies and world community: drug abuse, hunger, homelessness, illiteracy, despair in our inner cities, and the breakdown of the family. There's a role -- a critical role -- for government in finding solutions. But government doesn't have all the answers. 2 If we could eliminate these problems with more programs and more bureaucracy, we would have gotten rid of them a long time ago. We all know the government isn't the only organized entity with the power to make a difference. Every reader of this magazine is in a position to help. The resources, the expertise, and the potential energy you command through your organizations and governments is tremendous. And it can be a powerful force for making this a better world for our children. But no matter who we are or what we do for a living, each of us as individuals can make a difference. For isn't that why we're here -- to live a life of meaning? Each of us must stand up for the values important to all of us -- values like tolerance and decency, responsibility and faith. There's a story that Martin Luther King told once about serving others. He began with the famous story of the Good Samaritan, who stopped to help the stranger whom two other Samaritans had passed by. Dr. King asked himself: Why didn't the others stop to help? He came up with some good reasons. Perhaps they didn't stop because they were too busy. Maybe they had more important work waiting for them in Jerusalem. So on they went. Then one day, on his first trip to the Holy Land, Dr. King and his wife travelled that road from Jerusalem to Jericho -- and he understood. He walked the twisting road, full of blind curves, each a perfect ambush point for robbers. And he realized this: the men hadn't stopped because they were afraid. 3 The way Dr. King imagined it, one asked himself, "If I stop to help this man, what will happen to me?" And he went on his way. But then the Good Samaritan came along, and he asked himself, "If I don't stop to help this man -- what will happen to him?" That's when he found the bravery to stop and help -- to serve. Which question do we ask ourselves when we see a homeless man huddled on a steam grate? Or when we see a teenager who's run away from home, living a desperate existence of drugs and alcohol? What will happen to them if we do not stop and help? But unlike the Good Samaritan, we aren't on our own. We have the power of collective action as a force for good. But it'll take courage to go to your organizations and suggest that they place community service at the center of their agenda. It may be difficult to insist that community service has a place in every person's life. And it will take some tenacity to make each one believe that from now on, any definition of a successful life must include serving others. But that's exactly what we must do. This is the challenge before you: Find out what's working in your industry, your profession, or your nation. Spotlight those community service programs which are most effective, and dare others to make those programs the blueprints for their efforts. Put the power of your resources behind those 4 individuals who give 200% to helping people in need. Channel your collective energy into community service. It all begins with values -- which begin with the family. Living one's values is the essence of a meaningful life, a successful life. And teaching those values to our children is the way to change our nations and our world for the better. # # # Mar. 6 / Administration of George Bush, 1990 Nomination of Jo Anne B. Barnhart To talking to this group because most people Be an Assistant Secretary of Health and think I've been free associating for years. Human Services [Laughter] March 6, 1990 I heard that last year I accidentally caused panic among your executive direc- The President today announced his inten- tors. They thought I pledged no new faxes. tion to nominate Jo Anne B. Barnhart to be [Laughter] Assistant Secretary for Family Support at Believe it or not, there are still some the Department of Health and Human Americans who don't know what the "asso- Services in Washington, DC. This is a new ciation for associations" is. That's why next position. week they're doing a bit on you for TV's Since 1986 Mrs. Barnhart has served as "Unsolved Mysteries." [Laughter] Republican staff director for the Govern- mental Affairs Committee of the United Because really, only your organization is big enough and broad enough to include States Senate. Prior to this, she served as the Leafy Greens Council and the Associa- campaign manager for Senator William V. Roth, Jr., in Wilmington, DE, 1987-1988; tion of Tongue Depressors. [Laughter] That happens to be a fact. consultant in the Office of Policy Develop- ment at the White House in Washington, But I guess it's only natural for the heads DC, 1986; Associate Commissioner for of organizations like yours to get together Family Assistance at the Social Security Ad- themselves. Some people think of our great ministration at the Department of Health country as a nation of rugged individualists and Human Services, 1983-1986; and alone against the odds. And that is part of Deputy Associate Commissioner for Family the American tradition, but only a part. Assistance at the Social Security Administra- There's another tradition, a tradition as old tion, 1981-1983. In addition, Mrs. Barnhart as America itself, as old as Pilgrims and the served as legislative assistant for Senator Mayflower Compact, as old as the pioneers William V. Roth, Jr., 1977-1981; project di- who settled the West. It's the tradition that rector for SERVE Nutrition Project at the Tocqueville described more than 150 years Wilmington Senior Center, 1975-1977; leg- ago, when he came to America, observed islative liaison for the Mental Health Asso- the scenes, and wrote that "Americans of all ciation of Delaware, 1973-1975; and a space ages, all conditions, and all dispositions con- and time buyer for deMartin-Marona and stantly form associations." Associates in Wilmington, DE, 1970-1973. That shouldn't surprise us, because the Mrs. Barnhart graduated from the Uni- act of association is. nothing less than de- versity of Delaware (B.A., 1975). She was mocracy in action: individuals translating born August 26, 1950, in Memphis, TN. common interests into a common cause. Mrs. Barnhart is married, has one child, and And you know, today we see the power of resides in Arlington, VA. democracy, and isn't it an exciting time to be alive, seeing this change in Eastern Europe and in Managua, Nicaragua? We see that power of democracy and we see fresh evidence every day that the democratic Remarks to Members of the American ideal we cherish, the idea we call America, Society of Association Executives is alive everywhere: in the Revolution of March 6, 1990 1989 that brought down the Berlin Wall and brought freedom to Eastern Europe; Neil, thank you, sir. Thank you all. Thank here in our own hemisphere, in the great you, Neil Milner, chairman, for that warm victories for democracy in Panama and welcome and challenge. And Bill [Taylor], then again in Nicaragua; and millions of the president, the other president here people now enjoying the freedoms that today, thank you, sir. [Laughter] Let me America has known for two centuries. just say I really am pleased and privileged Here at home, we've got to see what to be with this group of people that do so these transforming changes in the world much. You know, I really feel comfortable mean for us. And those changes carry a 372 Administration of George Bush, 1990 / Mar. 6 challenge, a challenge to us to find in our New York, Atlanta, Portland, thousands because most people freedoms new ways to solve the problems more. Think about ways that your organiza- associating for years. that threaten our society and our continued tion, every one of your members, can make leadership in the whole world community. this mission of serving others your very year I accidentally Look around at the problems we face: drug own. your executive direc- abuse, hunger, homelessness, illiteracy, de- The story I want to tell you today-a pledged no new faxes. spair in our inner cities, the breakdown of story that Martin Luther King, Jr., told in the family. There's a role, a critical role for his speech he made the night before that there are still some government in finding solutions, but we terrible day in Memphis, 22 years ago-it's know what the "asso- know government doesn't always have the a story about serving others and the cour- s" is. That's why next answers. If we could eliminate these prob- age that takes. It's a familiar story about the bit on you for TV's lems, solve them once and for all with more Good Samaritan and the stranger he [Laughter] programs, more bureaucracy, these prob- helped. But there's another part of the lems would have disappeared a long time your organization is story we don't always remember. Before d enough to include ago. the Good Samaritan stopped that day, two uncil and the Associa- The fact is, government isn't the only or- other men saw the injured stranger and ganized entity out there with the powers to ssors. [Laughter] That change things, the power to make a differ- passed him by. And Dr. King thought long and hard about it, and he used to ask him- ence. Everyone in this room is well aware natural for the heads of the advantages of association. But I don't self: Why didn't the others stop to help? yours to get together know whether you are really aware of the And Dr. King came up with some good ple think of our great full extent of your own power, of the re- reasons: They didn't stop because they were rugged individualists sources, the expertise, the potential energy too busy, had more important work waiting S. And that is part of your organizations can bring to bear on in Jerusalem of far more consequence than on, but only a part. these problems-your ability to help solve helping one unfortunate man; and so, on ion, a tradition as old community problems. they went. d as Pilgrims and the I know most associations are already And then one day, Martin Luther King is old as the pioneers active in community service, and I've heard put himself in their shoes. At the age of 30, It's the tradition that about some of the wonderful work being on his very first trip to the Holy Land, he more than 150 years done: the Medical Association of Atlanta, and his wife, Coretta, traveled that road 0 America, observed working after hours to provide free medical from Jerusalem to Jericho. And Dr. King that "Americans of all care to the homeless; by the Oregon saw the story of the Good Samaritan in a d all dispositions con- Remodelers Association out there in Port- new light. That road starts off more than s." land, Oregon, in Project Pride, a program 1,000 feet above the sea level and ends in rise us, because the to do home repairs for the low-income el- Jericho 2,000 feet below sea level. A twist- othing less than de- derly; by the Hotel Association of New ing road, full of blind curves. He imagined dividuals translating York, with its ongoing commitment to the road 2,000 years ago, each curve a per- 0 a common cause. donate surplus food to feed the hungry. fect ambush for robbers. And at the we see the power of These are just three, just three of countless moment, Dr. King realized why the two an exciting time to community service projects that your asso- men didn't stop. It had nothing to do with change in Eastern ciations are engaged in, a commitment of the reasons he had imagined. They didn't a, Nicaragua? We see time and talent mirrored in similar commu- stop because they were afraid. cy and we see fresh nity efforts by millions of Americans across The way Dr. King imagined it, one asked that the democratic the country. himself: "If I stop to help this man, what dea we call America, In fact, one study in 1988 found that will happen to me?" And he went on about n the Revolution of Americans who volunteered in formal orga- his way. But then the Good Samaritan came wn the Berlin Wall nizations gave almost 15 billion hours, along and he asked himself a different ques- to Eastern Europe; valued at an estimated $150 billion. Now, tion: "If I don't stop to help this man, what sphere, in the great that's tremendous, but it's just the tip of the will happen to him?" And he asked himself cy in Panama and iceberg, just a fraction of all the good works that question, and he found the courage to ua; and millions of we are capable of. Because the fact is, stop, the courage to help, the courage to the freedoms that coping with the problems we face is within serve. two centuries. our power. There is no problem in America So, which question, then, do we ask our- e got to see what that is not being solved somewhere. Think selves: about going down to the soup kitch- anges in the world about it, the programs I've just mentioned: en in that dangerous neighborhood; about se changes carry a 373 Mar. 6 / Administration of George Bush, 1990 stopping on a dark street to help a homeless and I know one of the things you do best is man; about reaching out to those desperate to recognize outstanding performance. And kids out there, kids who have no home life, so, I ask you to turn the spotlight on com- who are hooked on drugs, who live a night- munity service in your newsletters, your mare we can't begin to imagine? Doing any magazines, at your annual meetings-on in- of these things isn't easy. Every one takes dividuals who give 110 percent helping an act of courage. But unlike the Good Sa- people in need and on those organizations maritan, we don't have to act alone. Each one of you understands the power of collec- who demonstrate 100-percent participation in community service. tive action: how much we can. get done when we work together, pool our resources, I'm counting on you, each one of you, to combine our talents. take these challenges to heart. People in And don't think it won't take courage. It's this room represent thousands of associa- going to take courage to go back to your tions, organizations of all sorts and sizes, a member organizations, back to their CEO's combined membership of 100 million and boards of directors, and suggest that Americans. And so today, I'm asking you: they place community service at the center Channel that energy into community serv- of their agenda. It's going to take courage ice, tap that power and transform a nation. to insist that community service has a place Once again, my thanks for all you are at the very heart of every organization. It doing and all that you're going to do. God will take courage to make each one believe bless you, and God bless the United States that from now on in America, any defini- of America. Thank you all very, very much. tion of a successful life must include serving others. But that's just exactly what I'm Note: The President spoke at 2:12 p.m. in asking you to do. Hall A at the Washington Convention Today, I want to lay down some chal- Center. A tape was not available for verifica- lenges, challenges to associations all over tion of the content of these remarks. America to take up community service. First, build on a firm foundation. Find out what's working in your industry, in your profession, in your community; let your Statement on Signing a Bill Extending members know which community service the Authorization for School Dropout programs are most effective; and then, chal- Demonstration Programs lenge them to make those programs the March 6, 1990 blueprint for their own efforts. Find new ways to use existing assets. I understand I am pleased to sign today H.R. 2281, a that one of the ASAE's great strengths is its bill that will help to attack the unaccept- allied societies structure: 69 State and local able dropout rate in our Nation's schools. organizations, thousands more association This bill extends an important Department executives. And I'm asking each of these of Education program, which provides allied societies to take the lead in their funds to local school districts to devise and community for solving social problems, demonstrate innovative strategies to reduce become what we call Points of Light action dropout rates and to encourage those who groups. have dropped out to return to school. Suc- And second, set a target of 100-percent cessful strategies can then be shared with participation in community service. Chal- other schools. lenge your constituents to call on every em- We all know that the dropout problem ployee and member at every level of every afflicting our educational system is both organization, from the CEO on down to the chronic and severe. Only about 70 percent newest hire, to make community service of our young people graduate from high their personal mission. school on time, and the statistics are even And finally, a third challenge: recognize worse for minority children and those in those members who are what I like to call urban areas. The consequences of our high Points of Light. I've belonged, as many of dropout rate are tragic for the individuals you have, to many associations in my life, who drop out and harmful for our Nation's 374 THE WHITE HOUSE WASHINGTON December 4, 1989 MEMORANDUM FOR CHRISS WINSTON FROM: ROGER B. PORTER RBP SUBJECT: Proposed Article for Leaders Magazine Henry O. Dormann has requested that the President submit an article or grant an interview for publication in the July edition of Leaders magazine. Henry Dormann claims to be a "good friend" of the President and has provided me with a list of articles written by former Presidents which were published in Leaders. Publisher Leaders Magazine, Inc. 59 East 54 Street New York, NY 10022 212/758-0740 Henry O. Dormann, Chairman of the Board Circulation Leaders is published quarterly and circulated to distinguished leaders of the world. Circulation is strictly limited and is approximately 35,000. To receive the magazine one must be the leader of a Nation, an international company, a world religion, an international labor organization, or a chief financial officer, major investor on behalf of labor or corporate pension funds, a chief information officer, a nobel laureate or a leader in science or the arts. Length of article Approximately 750 words Format Essay or interview July 1990 issue Deadline April is latest Byline The President Topic Rededication to the Moral Values of the Family THE WHITE HOUSE WASHINGTON Date: TO: MK FROM: CHRISS WINSTON Deputy Assistant to the President for Communications Room 122, OEOB, Ext. 2930 The attached is for: Per our conversation Per your request Information Review & Comment Direct Response Appropriate Action Draft Reply Signature File Other Please Return By Comments: touch hase with draft article - Insured up usiy 02/23/90 10:23 NO. 016 P004 LEADERS FAX TO: Dr. Roger B. Porter Assistant to The President for Economic and Domestic Policy The White House Fax Number: 202/456-2878 FAX FROM: Henry O. Dormann President & Editor-in-Chief LEADERS Magazine Fax Number: 212/593-5194 DATE: 19 February 1990 A fax transmission of 3 pages will follow immediately, including this one. It was so nice hearing from Nancy Jones that the President through Governor Sununu, has agreed to the cover photograph. Our Executive Editor, Darrell Brown, will be in touch with David Valdez to obtain transparencies of the photograph that you and I discussed of the President and Mrs. Bush. I'm so happy also that the President agreed to the article. Since I'm leaving on Friday for an interviewing trip through the Middle East, Australia and South America, returning on March 28th, I would like very much to talk personally to the Staff Writer who will be putting the article together for the President's approval prior to my departure. As we discussed, the subject of the article would deal with the family unit and the need for the reemergence of old- fashioned notions such as love, spending time with the children and bringing back the original family values in an effort to bring up a new generation of children with high moral principles and a caring attitude. In that way, perhaps our current trend of crime, dope, AIDS, etc. would be lessened and the youth of our nation would grow up with standards and ideals that are more concentrated towards good. As you know, we are organizing a small group to work with the Advertising Council to get all media in the nation to make use of this idea so that a Procter & Gamble when advertising Ivory soap would not advertise a bar of soap but would rather advertise it used in a family setting. From all those we have discussed this with, the idea is universally popular and acceptable. Everyone is most enthused about it. 02/23/90 10:23 NO. 016 P005 Dr. Roger B. Porter 19 February 1990 Page Two The President's article might make such a suggestion, if it would be appropriate, but in theme it would call upon not only Americans but good people throughout the world to bring back some of those old-fashioned values that are still worthwhile in a modern world. In my travels throughout the world, including the Far East, the Japanese family is experiencing the same problems as the American family and also in Muslim nations, Muslim families and their children are surprisingly experiencing similar problems. I have found this information not only from heads of state I have visited, but from people on the street where the same idea is equally of concern. Therefore, we would like this to be a message not only to the United States but to the world calling for this rededication of the principles of good family life. While the tone is high, the article still needs to be interesting to our readers and not just puff. Because of this, I'd like very much to work closely with the writer personally BO that what we publish is something of which the President and you can all be proud, but something also that will be read by our very sophisticated and very busy readers. If at all possible, I would like to speak with that individual before I leave the country on Friday so that we can prepare in time, because we would need the article by April 1st. As we discussed, I would also like to whizz through in early April for about thirty seconds to take an updated photograph with the President which we can use with the article. I appreciated very much also hearing that the President had agreed to meet with the leaders of the organization that would work with the Advertising Council and the nation's major corporations to accomplish this program and to get to the mass public. 02/23/90 10:23 NO. 016 P006 Dr. Roger B. Porter 19 February 1990 Page Three I will fax you a list of those who would like to attend the meeting with the President. It will be a small group taken from amongst the names I sent you before. I'm just checking dates and final clearance and I will then come back to you within the next few days with the appropriate information. My last thought is that Nancy Jones is one of the nicest people I've ever worked with. I would normally say she deserves a raise but I know you are restricted in that regard so I'll say instead that she deserves a medal. If you can't come up with one at The White House, I'll have to bring one down during my next visit. 59 EABT 04 STREET NEW YORK 10028-212 750 TE EX: ****** 02/23/90 10:23 NO. 016 P004 LEADERS FAX TO: Dr. Roger B. Porter Assistant to The President for Economic and Domestic Policy The White House Fax Number: 202/456-2878 FAX FROM: Henry O. Dormann President & Editor-in-Chief LEADERS Magazine Fax Number: 212/593-5194 DATE: 19 February 1990 A fax transmission of 3 pages will follow immediately, including this one. It was so nice hearing from Nancy Jones that the President through Governor Sununu, has agreed to the cover photograph. Our Executive Editor, Darrell Brown, will be in touch with David Valdez to obtain transparencies of the photograph that you and I discussed of the President and Mrs. Bush. I'm so happy also that the President agreed to the article. Since I'm leaving on Friday for an interviewing trip through the Middle East, Australia and South America, returning on March 28th, I would like very much to talk personally to the Staff Writer who will be putting the article together for the President's approval prior to my departure. cw- As we discussed, the subject of the article would deal with the family unit and the need for the reemergence of old- Thisis 'e fashioned notions such as love, spending time with the children and bringing back the original family values in an what They what They effort to bring up a new generation of children with high moral principles and a caring attitude. In that way, perhaps our current trend of crime, dope, AIDS, etc. would be looking lessened and the youth of our nation would grow up with standards and ideals that are more concentrated towards good. As you know, we are organizing a small group to work with the Advertising Council to get all media in the nation to make for: use of this idea so that a Procter & Gamble when advertising Ivory soap would not advertise a bar of soap but would rather advertise it used in a family setting. From all those we have discussed this with, the idea is universally popular and acceptable. Everyone is most enthused about it. Read fra few yuks - 10:25 NO. 016 P005 Dr. Roger B. Porter 19 February 1990 Page Two The President's article might make such a suggestion, if it would be appropriate, but in theme it would call upon not only Americans but good people throughout the world to bring back some of those old-fashioned values that are still worthwhile in a modern world. In my travels throughout the world, including the Far East, the Japanese family is experiencing the same problems as the American family and also in Muslim nations, Muslim families and their children are surprisingly experiencing similar problems. I have found this information not only from heads of state I have visited, but from people on the street where the same idea is equally of concern. Therefore, we would like this to be a message not only to the United States but to the world calling for this rededication of the principles of good family life. While the tone is high, the article still needs to be interesting to our readers and not just puff. Because of this, I'd like very much to work closely with the writer personally BO that what we publish is something of which the President and you can all be proud, but something also that will be read by our very sophisticated and very busy readers !!! If at all possible, I would like to speak with that individual before I leave the country on Friday so that we can prepare in time, because we would need the article by April 1st. As we discussed, I would also like to whizz through in early April for about thirty seconds to take an updated photograph with the President which we can use with the article. I appreciated very much also hearing that the President had agreed to meet with the leaders of the organization that would work with the Advertising Council and the nation's major corporations to accomplish this program and to get to the mass public. 02/23/90 10:23 NO. 016 P006 Dr. Roger B. Porter 19 February 1990 Page Three I will fax you a list of those who would like to attend the meeting from with the President. It will be a small group taken dates and final clearance and I will then come back to amongst the names I sent you before. I'm just checking within the next few days with the appropriate information. you The My last thought is that Nancy Jones is one of the nicest people I've ever worked with. I would normally say she so I'll say instead that she deserves a medal. If you cad't deserves a raise but I know you are restricted in that regard clinker. down during my next visit. come up with one at The White House, I'll have to bring one STREET NEW YORK THE WHITE HOUSE WASHINGTON April 2, 1990 Dear Mr. Dormann: Enclosed is the final version of the President's article for the July issue of Leaders. I have already faxed a copy to your office as well. If you have any problems or edits in the copy, please do not hesitate to call me at 202/456-7943. Also, if I could ask one favor: Would it be possible for you to send me three copies of the issue when it is published (one for the President's records, one for Roger Porter, and one for myself)? Thanks SO much. Good luck with the issue, and I look forward to working with you again. Sincerely Many Many Kate grant Speechwriter Kate Rate Grant Mr. Henry O. Dormann Leaders Magazine 59 East 54 Street New York, New York 10022 THE WHITE HOUSE WASHINGTON March 30, 1990 "IT ALL BEGINS WITH THE FAMILY" BY PRESIDENT GEORGE BUSH TO BE PUBLISHED IN LEADERS MAGAZINE We are a world made up of families, with no two families alike. And yet there are dreams that we, as members of families, all share. The hopes that any one of us has had as a parent are the hopes of parents around the world: that our children grow up in a safe environment with a good education and that they be given the same opportunities as anyone else's children. That they lead a life of values -- a life in which they can take pride. We are also a world made up of communities, thousands upon thousands of religious, ethnic, social, business, labor and neighborhood organizations -- all of them vital to our future together. With God's help, each of us must chart a course for our own lives and the lives of our children. By working through our families and communities, we can change things for the better -- and in the process, change our nations and our world for the better. 2 There is no problem in the world that is not being solved somewhere. Around the globe, citizens are facing the challenges that threaten their societies and the world community: drug use, hunger, homelessness, illiteracy, disease, and the breakdown of the family. And acting as "a thousand points of light," as I like to call them, these citizens are making a difference to those who need help. There's a role -- an important role -- for government in finding solutions. But we all know that government isn't the only institution with the power to make a difference. Every reader of this magazine is in a position to help. The resources, the expertise, and the potential energy you command through your organizations and governments are tremendous. You can be a powerful force for making this a better world for our children. But no matter who we are or what we do for a living, each of us as individuals can make a difference. Isn't that why we're here -- to live a life of meaning? Each of us must defend and affirm the values, the fundamental moral principles, important to all of us -- principles like tolerance and decency, responsibility and faith. Meeting with some community-minded association executives not too long ago, I talked about a story that the Reverend Martin Luther King once told about serving others. He began with the famous Biblical story of the Good Samaritan, who stopped to help a stranger whom two other travelers had passed by. Dr. King asked himself: Why hadn't the others stopped to help? Perhaps 3 they didn't stop because they were too busy. Maybe they had important work waiting for them in Jerusalem. So on they went. Then one day, on his first trip to the Holy Land, Dr. King and his wife travelled that road from Jericho to Jerusalem -- and he understood. He walked the twisting road, full of blind curves, each a perfect ambush point for robbers. And he realized that perhaps the men had not stopped because they were afraid. The way Dr. King imagined it, the passerby asked themselves, "If I stop to help this man, what will happen to me?" And they went on their way. But then the Good Samaritan came along, and asked himself, "If I don't stop to help this man -- what will happen to him?" That's when he found the courage to stop and help -- and the courage to serve. Which question do we ask ourselves when we see a homeless man huddled on a steam grate? Or when we see a teenage runaway, living a desperate existence on drugs and alcohol? What will happen to them if we do not stop and help? But unlike the Good Samaritan, we aren't alone. We have the power of collective action as a force for good. But it takes courage to go to your organizations and ask that they place community service at the center of their agenda. Sometimes, it may be difficult to insist that community service has a place in every person's life. And it will take tenacity to make each one believe that from now on, any definition of a 4 successful life must include serving others. But that's exactly what we must do. This is the challenge before you: Find out what's working in your industry, your profession, or your nation. Spotlight community service programs that are effective, and challenge others to make those programs the blueprints for their own efforts. Put the power of your resources behind the kind of individual who gives 200% to help people in need. Channel your collective energies into community service. It all begins with the kind of moral principles -- values we consider important and these begin with the family -- the family living under your roof, but also the family of nations, the family of man. Living one's values is the essence of a meaningful life, a successful life. If we live by our principles and teach them to our children we will find our nations and our world changing for the better. # # # sy 1986 8. Letters to the Editor DEFENSE 60. No Substitute for Vigilance The Hon. Ronald W. Reagan, President of the United States of America 62. The Gas Turbine Goes Navy Brian H. Rowe, Senior Vice President and Group Executive, General Electric Marine and Industrial Engine Division 16. The Future of Financial Services: 64. The Quiet Economic Revolution in Navy Playing the Intermediation Game Shipbuilding James D. Robinson III, Chairman and Chief Executive William E. Haggett, President and Chief Executive Officer, American Express Company Officer, Bath Iron Works Corporation 20. Economics and the Financial Services Industry 66. A Century of Shipbuilding Allen Sinai, Chief Economist and Managing Director, Edward J. Campbell, President and Chief Executive Shearson Lehman Brothers, Inc. Officer, Newport News Shipbuilding 22. Public Responsibility Issues for Financial Services Companies Meredith M. Fernstrom, Senior Vice President-Public Responsibility, American Express Company 69. The Corporate Aircraft-Should You Own One? 24. The Information Revolution and Financial Orlando E. Panfile, Chairman, Chief Executive Officer Services and President, Aero Services International, Inc. Harry L. Freeman, Executive Vice President, American 72. How to Buy a Used Plane without Getting Your Express Company Wings Clipped 28. A Passion for the Past Andrew B. Callen, President, Boston Jet Search, Inc. Fayez Barakat, President, Barakat 76. The Human Factor in Design 35. Disciplined Investment Management James M. Ryan, Partner, Henry Dreyfuss Associates Henry J. Gailliot, President, Federated Investment 80. Designing for Flight Counseling, Inc. Michael S. Reese, President, Reese Design 36. Multiple Valuation Approach to Equity Investing 92. The Case for Battle Surveillance Airships John J. Nagorniak, President, Franklin Portfolio C.E. Myers, Jr., President, Aerocounsel, Inc. Associates 96. The Electronic Edge 37. An Alternative to Straight Value Management John W. Dixon, Chairman and Chief Executive Officer, Mark L. Mallon, Executive Vice President, Federated E-Systems, Inc. Investment Counseling, Inc. AUSTRALIA INTERNATIONALIZES: 38. Pension Investment Strategy Dean LeBaron, Trustee, Batterymarch Financial Down Under On Top Management 101. Investment in Australia 40. The Small Firm Phenomenon The Hon. Robert J. Hawke, Prime Minister, Rex A. Sinquefield, Executive Vice President, Commonwealth of Australia Dimensional Fund Advisors Inc. 104. The China Trade 44. Raising Capital in London Sir Peter Abeles, Chief Executive and Managing Joseph E. Levangie, Chief Financial Officer, Director, TNT Ltd., Redfern, New South Wales Colorgen, Inc. 48. Redlegged Partridge Shooting in Spain William R. Haselton, Vice Chairman of the Board, Champion International Corporation 50. The Sovereign Debt Crisis Frank G. Zarb, Senior Partner, Lazard Freres & Co. 53. Reciprocity in International Banking x Dr. Franz Galliker, Chairman of the Board of Directors, Swiss Bank Corporation, Basle 56. Gearing Up for Management Buy-Outs Michael F. Spiessbach, President, Wesray International, Inc. NE STE No Substitute improving efficiency in defense is never complete $ 250 and we continue to implement improvements for Vigilance couls. whenever they are identified. Oddly, however, one issue today is just how much efficiency and cost- UNUM savings Congress will allow. Earlier this year, my Blue Ribbon Commis- sion on Defense Management, chaired by David Packard, said Congress must stop trying to "mi- By The Honorable Ronald W. Reagan, cromanage" the Defense Department. Many se- President of the United States of America nior members of Congress who are experts in the defense field endorse this finding. The Commis- Two hundred and ten years ago, our forefathers sion said-and I agree-that Congress should share had the courage to create a new Nation. Today, we in the critical decisions about national security must have the courage to preserve it. priorities and major weapon systems procure- Much has changed since 1776, as American ment. But as Senator Barry Goldwater, Chairman invention, industry, and growth have worked of the Senate Armed Services Committee, ob- magic in the New World. But while the face of served: "The present budget process distorts the America has changed, our commitment to defend nature of Congressional oversight by focusing freedom remains a vital part of our heritage. primarily on the question of how much before we There is no substitute for vigilance in the answer the key questions of what for, why, and defense of freedom and no substitute for strength how well." in the preservation of our security. Americans I have already ordered the adoption of vir- understand this; the people want a strong national tually all of the Packard Commission's manage- Congress defense. We have learned the hard lesson of ment reform proposals that do not require changes must stop try history: Weakness tempts those who make war. in law or Congressional procedures. I remain ing to "micro For centuries, nations have known that only hopeful that Congress will move quickly to make manage" the the strong can preserve the peace. As the English additional changes in law where necessary and Defense poet George Herbert put it 300 years ago, "One also make sensible changes in the way it conducts Department. sword keeps another in the sheath." John Ken- its affairs, as the Commission recommends. nedy, in one of his first statements as President, As Commander in Chief, it is my duty to said: "Only when our arms are sufficient beyond make certain our young people in uniform have doubt can we be certain that they will never be the equipment they need to get the job done. employed." Given the Soviet goal of military superiority over The terrorists of the world do not strike at the United States, and their massive leads in those willing to strike back. They target their armaments and troops, we will probably never be attacks at the weak, the unprepared, the passive, bigger than the Soviet forces. That is why we and the unsuspecting. The only way to ward them need to be better. off is with the strength that comes from being Some critics complain about unnecessary prepared. complexity they say is added to our weapons. But There was a time when we faltered in our as we've seen time and time again, the excellence resolve to be strong. And freedom paid the price. of our technology often provides an extra margin In the '70s, we reduced defense spending by 20 of safety for our servicemen and women. For percent in real terms. The Soviets, in turn, spent example, the combination of electronic warfare 50 percent more on defense than we did in the and so-called "smart bombs" allows our combat same period, $100 billion more on research and pilots to fly through air defenses and make only development alone. The Soviets gained ground or one pass over their targets. Use of older, less gained influence in Laos, Cambodia, South Viet- costly weapons would require our pilots to incur nam, Afghanistan, South Yemen, Ethiopia, greater risk by spending more time exposed over Mozambique, Angola, Nicaragua, and Grenada. their targets in full view of the enemy's air Today, Americans are finding success in our defense. Clearly, that alternative would be more search for peace: Since 1981, when we renewed dangerous and less effective. The lives of U.S. our commitment to a strong defense, not one troops and their effectiveness in combat demand nation has been lost to Communist expansion and prudent investment in technology. Grenada has been set free. The men and women who stand ready to When we took office, the cost of major protect us and our allies against those who would weapon systems was increasing at the rate of 14 do us harm risk their lives as surely as our percent a year. Through tough-minded reforms forefathers did more than two centuries ago. Like we have cut that cost growth back to one percent a the patriots of Lexington and Concord, today's year. Since 1981, the Defense Department has patriots are volunteers who love liberty and are conducted more than 60,000 audits, which pro- willing to make sacrifices to defend freedom. We duced $10 billion in savings. And we have in- owe them, we owe ourselves, and we owe our creased nearly four-fold the number of Navy children a commitment to ensuring that our contracts awarded by competitive bidding. But strength is second to none and our resolve is never even with all we have accomplished, the job of questioned. LEADERS 8. Letters to the Editor July 60. Opportunities and Challenges Joseph D. Williams, President and CEO, Warner- Lambert Company 60. The Academia-Industry Connection Harris Busch, M.D., Ph.D., and Michael E. DeBakey, M.D., Department of Pharmacology and Depart- ment of Surgery, Baylor College of Medicine 62. Japan's Challenge Edmund T. Pratt, Jr., Chairman and CEO, Pfizer Inc. 64. Challenges of Drug Development Dr. Stanley T. Crooke, President, Research & De- velopment, Smith Kline & French Laboratories, and Vice President, SmithKline Beckman Corporation TRIAD FOR PEACE 69. The Game of Air Defense Allen E. Puckett, Chairman of the Board and CEO, 16. Triad for Peace Hughes Aircraft Co., Guest Editor The Honorable Ronald Reagan, President of the 71. North American Aerospace Defense United States General Robert T. Herres, Commander in Chief, 19. A Potent Force for Peace North American Aerospace Defense Command, Vice Admiral N.R. Thunman, USN, Deputy Chief Commander, U.S. Air Force Command of Naval Operations (Submarine Warfare) 72. Protecting Sovereign Airspace 20. Defense vs. Retaliation Major General S. Boy, General Manager, NATO General Charles A. Gabriel, Chief of Staff, U.S. AEW & C Programme Management Agency, Air Force Brunssum 22. A Credible Strategy 74. Airspace Command and Control General Bennie L. Davis, Commander in Chief, Air Vice-Marshall Stewart Menaul, RAF Retired, Strategic Air Command and Director, Joint Strate- Farnham gic Target Planning Staff 77. A Data Base for Security 25. Strategic Deterrence: A Broader Meaning Major General Arne K Sejnæs, Commander Vice Admiral James A. Lyons, Jr., Deputy Chief of AIRMATCOMNOR, Royal Norwegian Air Force Naval Operations Materiel Command, Kjeller 26. Towards a More Effective Defense Posture Thomas V. Jones, Chairman of the Board and CEO, 78. Art for Productivity's Sake Northrop Corporation Paul LaBell, Director of Marketing, Lublin Graph- 29. The Status Quo Isn't Enough ics Incorporated Edward J. Campbell, President and CEO, Newport 80. A Safari for Royalty News Shipbuilding Geoffrey Kent, Chairman of the Board, Abercrom- bie & Kent International, Inc. 32. Merchant Statesman 84. The Convergence Is Coming Adnan M. Khashoggi, Chairman, The Triad Group Stig Larsson, President, Ericsson Information Systems of Companies 85. Greying Demographics Donald C. Wood, President, Donnelley Marketing EXECUTIVE HEALTH Information Services, A Company of the Dun & 37. Executive Health Bradstreet Corporation 86. An Industrialist's View Armin A. Dassler, President, Puma-Sportschuh Fabriken AG, Herzogenaurach, Guest Editor Andre Leysen, Chairman, Agfa-Gevaert 39. Executive Eyes 90. Kidnap and Ransom Insurance: Unmentionable Robert S. Coles, M.D. yet Unavoidable 40. The Executive Back Bruce K. Howson, President, CIGNA Worldwide, Inc. James A. Nicholas, M.D., Director, Department of Orthopedic Surgery, Lenox Hill Hospital 92. Growth through A Return to Basic Values 45. Executive Feet Jack F. Reichert, Chairman, President and CEO, Vincent J. Turco, M.D., Turco-Casale-Spinella Brunswick Corporation Orthopaedic Associates, Inc. 96. What Do You Do After You Do The Deal? 46. Executive Fat Daniel J. Manella, Chairman and CEO, McGregor Isadore Rosenfeld, M.D., Clinical Professor of Medi- Corporation cine, New York Hospital-Cornell Medical Center 98. Gift-Giving Customs You Should Know 48. Snoring Sleep Affects Productivity William R. Chaney, Chairman of the Board and Michael J. Thorpy, M.D., Director, Sleep-Wake CEO, Tiffany & Co. Disorders Center, Montefiore Medical Center and 102. Intelligence for Business Leadership Albert Einstein College of Medicine William E. Colby, General Partner, Colby, Bailey, Werner and Associates 50. Preventing Heart Disease Floyd D. Loop, M.D., The Cleveland Clinic Foundation THE CHALLENGING ROLE OF CHIEF 52. Easy, Painless New Teeth in 45 Minutes FINANCIAL OFFICERS Earle Davidoff, D.D.S., P.C. 105. Asset-Based Financing: The Brave New World PHARMACEUTICALS- THE Robert H. Martinsen, Chairman, Citicorp Industrial PROBLEMS OF DRUG DEVELOPMENT Credit 108. The Changing Role in Capital Goods 57. The Problems of Drug Development R.C. van den Heuvel, Board of Management, John J. Horan, Chairman and CEO, Merck & Co., Fokker B.V. Inc., Guest Editor 110. Motivating the C.E.O. to Upgrade His Own 58. Research and Development Price/Earnings Multiple P. Roy Vagelos, M.D., Executive Vice President, Theodore H. Pincus, Chairman and Managing Part- Merck & Co., Inc. ner, The Financial Relations Board, Inc. and in ing the full planne strategic nuclear f plete the moderni means in turn that a strong military p the United States To counter th th fluence worldwide tunistic expansion overseas bases, an water Nayy, the de the emergence of n the Sovietairlif Saviet airlif ofits of its forces We ha expanding the geo world the Soviet its military power ceivable defense n itary arsenal far b b Union continues. principal adversar 10.61 and frien and the Unit Kepo