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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: Snow, Tony, Files Subseries: Subject File, 1988-1993 OA/ID Number: 13892 Folder ID Number: 13892-011 Folder Title: Budget, [7/16/90] Stack: Row: Section: Shelf: Position: G 18 29 1 7 Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 01a. Memo Re: Presidential/ Congressional budget negotiations. (1 pp.) 07/16/90 Collection: Record Group: Bush Presidential Records Office: Speechwriting, White House Office of Series: Snow, Robert Anthony (Tony) Open on Expiration of PRA Subseries: Subject File (Document Follows) WHORM Cat.: By CAP (NLGB) on 4/5/05 File Location: [Budget 7/16/90] Date Closed: 12/22/2004 OA/ID Number: 13892-011 FOIA/SYS Case #: S Appeal Case #: Re-review Case #: 2005-0485-S Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. Dan Me. Close Hold It is important to address the budget negotiations and budget deficit problem and the President's role head-on. Basic strategy should be to put and keep the ball deep in the Democrat's/Congress' court. Keep the pressure on them to come up with their part of the deal -- "I did my part, now it's their turn. If -- of the President's statement, remind them that the Democratic leadership agreed to it in the meeting and supported it later that day publicly. The object is to get the press and the public to put the heat on the Democrats, to get serious about the negotiations and what they are willing to do on domestic spending, entitlements, and process reform -- the tough stuff for them. Characterize the issue as critical to the health of our national economy, the welfare of the country and one that will have a direct effect on many individual citizens now and in the future. Don't use language that lets the press characterize this simply as a wrestling match between Republicans and Democrats. Use the word "Congress" if you want to be a little less political and the word "Democrats" if you want to be more political. The five points I used in Chicago are attached which is generally what I think the President should do. 7/16/90 Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 01b. Memo Re: Five Points of Presidential/ Congressional budget 07/12/90 negotiations. (3 pp.) Collection: Record Group: Bush Presidential Records Office: Speechwriting, White House Office of Series: Snow, Robert Anthony (Tony) Subseries: Subject File Open on Expiration of PRA WHORM Cat.: (Document Follows) File Location: [Budget 7/16/90] By CAP (NLGB) on 4/6/05 Date Closed: 12/22/2004 OA/ID Number: 13892-011 FOIA/SYS Case #: S Appeal Case #: Re-review Case #: 2005-0485-S Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRAJ (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. 7 Let me stop right here for a moment and address what I know is on a lot of your minds as you came to Chicago. That is the President's statement two weeks ago regarding the budget deficit and a potential increase in tax revenue. I think there are several points that need to be made and kept in mind as we think about the implications of the President's statement. First, the President knows that good government is good politics and that there is no issue where that is more true than the importance of a strong growing economy. We have had 92 months of economic growth under Republican administrations. There would be no greater threat to the country, and to us politically, than to have that growth end. The President believes that the budget deficit is the one thing that could threaten that economic growth and that is the issue that needs to be solved and solved this year. Second, the President is the person who supplied the leadership to start these negotiations, has now taken the leadership to get them off the dime 7/12/90 8 and into a serious mode, and he will be the person who supplies the leadership to ultimately get a solution to this problem. Third, the President was dealing with political reality. He said in his press conference two weeks ago that his convictions about taxes had not changed at all, but recognized it would be necessary to have some tax revenue increases in order to get a deficit agreement. Remember, he has said time and again that if Congress would give him a line item veto he would be happy to take responsibility for reducing the deficit and would do so without raising taxes. However, the political reality is that no package can be agreed on or get passed without agreement of the Democrats who control Congress. Fourth, the President has put the ball deep in the Democrats territory. He has done the one thing that the Democrats have been saying he needed to do for over a year in order to get serious budget negotiations moving. Remember, the Democrat leaders last week agreed and supported the statement that not only included the 7/12/90 9 phrase, 'Tax Revenue Increases' which is what they wanted, but it included domestic spending cuts, entitlement reforms and budget process reform. Now the ball is in their court and as they come back to Washington, I think we will find the voters interested in what they are going to bring to the table in those areas. Fifth, I know George Bush well and there is not going to be a deal that is not a good deal for the economy and the country. And that in the end will give this party a very strong record to run on. Poll we had done: President Bush said earlier this week that he and the leaders of Congress agreed that a solution tot he budget deficit problem would have to include tax revenue increases, major cuts in domestic spending, reduction in the growth of entitlements, cuts in defense spending, and budget process reform. Do you approve or disapprove of the statement President Bush made? Approve 58% Disapprove 31 7/12/90 8/1/90 THE WALL STREET JOURNAL WEDNESDAY REVIEW & OUTLOOK A Baltic Sea Of Leaders Asks By To-ga! To-ga! America's Help It's that tin people are head Pity Washington's poor budget lier efforts to cut by 10% and then 5%. By AMITY SHLAES ting their lives summiteers. While they're stuck de- Cheeky Republican Bob Walker of How long is 100 days? Long enough for safe haven. a country to make a revolution. Long But even if 1 bating how much more to tax a six- Pennsylvania then moved to cut enough too for the Soviet Union to lock that the perils of 00 pack of Budweiser, their fraternity spending by .0000000002%, or $19.90, country inside its crumbling empire. vessels, there brothers in Congress are throwing the but he lost too! That at least is the view of a clutch of reach their go biggest party of the summer. What are the Members protecting? leaders from newly elected Baltic govern- merchant or n: Despite all the wailing about the The Heritage Foundation's Scott ments passing through Washington this be allowed to ( "deficit," the spending taps on Capitol Hodge has compiled a list that reads summer. The statesmen from Lithuania, sia, Macao an Hillare wide open. The campus police like logrolling in our time: $2.85 mil- Latvia and Estonia talk of the disintegra- them first asyl tion of Mr. Gorbachev's power. They talk or Thailand, th (they of the "no new tax" pledge) are lion for a fish farm in Stuttgart, Ark.; about independence declarations they have away and push nowhere in sight, SO the revelers have $8 million for the U.S. Institute of made in the past 100 days and hope that they reach Hor abandoned all self-restraint. There Peace; $100,000 for an Army Corps of their mission to America will speed them trary distinctio hasn't been anything quite like this Engineers investigation of Waikiki along the road to full independence. But litical deprivat since John Belushi screamed "toga" Beach (every fraternity brother's they also fear that American help won't out" as people at Faber College. The Bush Adminis- dream); $8.5 million for a high-occu- come in time to stop a Moscow that still life," as one B: tration seems not to want to spoil the pancy-vehicle traffic demonstration controls their borders from squeezing them sequence, they fun by pointing any fingers. Hapless project in Virginia; and $50,000 for the back into the Soviet order. Some of them to Vietnam, a national bicycle program manager. even think that by fall-100 days from than death. taxpayers are left asking where all now-Soviet troops might turn Baltic inde- This patheti the money went. And so on. pendence into a historical footnote. along with the Since George Bush put "tax reve- About the only thing on the chop- Ivars Godmanis and Janis Jurkans, litical nonsense nue- increases" on the table last ping block is defense, with the excep- Latvia's newly elected prime minister and ple from finding month, the House of Representatives tion of domestic military bases the foreign minister, represent the optimistic Indochinese re has passed eight appropriations bills Pentagon doesn't want. The Stealth side of that wager. The pair of Balts camps in Sout! worth $403.1 billion. That's about $41 bomber has to go, but Democrat Gene checked into Washington's Mayflower Ho- will give them tel 10 days ago bearing a message for Mr. been interned billion or 11.4% more than last year, Taylor is holding onto his district's more than double the inflation rate. Bush from Boris Yeltsin, the Russian re- It is this sit Mississippi Army ammunition plant, public's new president. Mr. Yeltsin sug- sored conferer The Housing and Veterans bill came just in case someone (say a GOP can- gested opening diplomatic relations be- summer as su in at a whopping 17% over a year ago, didate) invades the Gulf Coast. A tween the Russian republic and the U.S. Vietnam-is CC apparently meant as a tribute to the "base closing bill" sponsored by Dem- Soon, the Latvians hope, new individual neva. The favo HUD scandal. The farm bill is rolling ocratic Reps. Les Aspin and Pat nations-Latvia, Estonia, Lithuania and the convention in at a record $54 billion, while a Schroeder is rigged with enough bu- Russia-will start replacing the Kremlin in boat people ba Ways and Means subcommittee has reaucratic tripwires to prevent most the international order. "Everything is against their W created a new $4.5 billion foster-care bases from ever closing. great. We see no problem," burbled Mr. tend that they entitlement. Dan Rostenkowski may Jurkans into the telephone late one eve- We could go on, but suffice it to say A Large-Scal ning last week after a meeting with Secre- curse the deficit, but don't say he that this is the crowd President Bush The irony is tary of State James Baker. doesn't know how to have a good wants to reach a budget "agreement" much more dif As things turned time. settle because with. The talks are stalled, so the lat- out, the Latvians did The farm bill captures the let's- cluding the U.S est line is that the fault lies "within make progress. The quotas, the boa get-busy nature of the revels. In the the White House." Reportedly, John U.S. has never rec- proved their W House, a rare liberal-conservative co- Sununu and Dick Darman are at odds, ognized the Soviet From 1981 to alition tried to remove the worst sub- as if the President doesn't make up annexation of the conducted a la sidies, but "we got waxed," reports Baltic nations in his own mind. nomic and socia 1940, but it doesn't New York Democrat Tom Downey. But even if he can agree with Tom boat people, (yet) recognize the Even an amendment to deny crop sub- Foley and George Mitchell, how will households acr new Baltic govern- sidies to farmers earning more than George Bush enforce anything with were predomin ments either. When nic Chinese fro. $100,000 went down to defeat, though it the rest of Congress? Whom can he the Latvians arrived were Lao. All would have saved $700 million a year. count on? Senate Appropriations in Washington, the U.S. during the In the Senate, a bipartisan attempt to Chairman Robert Byrd? Not likely, White House told Unlike those trim the ridiculous sugar subsidy by a since Mr. Byrd is privately boasting them the president had no time to meet. Lennart Meri ter the fall of mere two cents a pound (to 16 cents) that as long as he's in the Senate wave of refug. Messrs. Godmanis and Jurkans were not also was routed. George Bush will never get a line- and occupation even invited to last Wednesday's Rose Gar- The only Members not enjoying the item veto or enhanced rescission. contact with the den ceremony commemorating Captive party are the nerds trying to resist the Short of these or other institutional hardship in the Nations Day-even though the annual they were muc peer pressure. After Illinois Republi- reforms, the only fiscal discipline in event is designed specifically to honor Only one in 10} can-Harris Fawell voted to cut back town was "no new taxes." While Con- struggles of nations like Latvia. On Thurs- rival to be able one spending bill by a measly 2%, gress still spent into deficit, even it day, though, Sen. Robert Byrd (D., W.Va.) signs and, in ter House appropriators denied a $17 mil- could only go SO far. With that disci- introduced the two gentlemen to the Sen- they arrived wi: lion grant to Argonne Laboratory in pline now lifted, Congress is back to ate, and the president's office got wind of entered the U.S Mr.: Fawell's district. Everyone else the Yeltsin message. Presidential time ma- its bacchanal. Mr. Bush has played since the Grea terialized. The Latvians spent 40 minutes got the message. his best card, but Congress has yet to Nonetheless. Monday with Mr. Bush. Minnesota Democrat Tim Penny's had found empl put a single spending cut or budget re- Whatever this kind of behavior says poverty, while proposal to cut each appropriation bill form on the table. No wonder the about the president, it satisfies the buoyant even experts in by 2% lost all but once, much like ear- Members are in a mood to party. Latvians. "Creeping recognition," is how their remarkah some in Washington have described it. deed. little in t "Fine, don't recognize us yet." Mr. God- manis reportedly told Mr. Bush. "We're