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[Department Agency Reports M-Z, 10/91-12/91]
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[Department Agency Reports M-Z, 10/91-12/91]
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Records of the White House Office of Speechwriting (George H. W. Bush Administration)
Tony Snow Subject Files
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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:
13893
Folder ID Number:
13893-016
Folder Title:
[Department Agency Reports M-Z, 10/91-12/91]
Stack:
Row:
Section:
Shelf:
Position:
G
18
29
2
1
OF
THE TREASURY THE
DEPARTMENT OF THE TREASURY
WASHINGTON
1789
September 16, 1991
MEMORANDUM FOR EDE HOLIDAY
ASSISTANT TO THE PRESIDENT AND
SECRETARY OF THE CABINET
FROM:
Hollis S. McLoughlin
HSM
Assistant Secretary (Policy Management)
SUBJECT:
1991 Fall Assessment
The following report summarizes key issues and activities at the
Department of the Treasury for September 15 to December 31, 1991.
I. HIGHEST PRIORITIES
1.
Financial Services Modernization.
2
Enterprise for the Americas Initiative.
3.
Continue thrift industry cleanup.
4.
Implementation of the Brady Debt reduction plan.
5.
Review of the U.S. insurance industry.
6.
Continue to monitor the availability of credit.
7.
Continue Tax Systems Modernization efforts and reduce
burdens of tax administration.
8.
Continue work toward a reduction in the capital gains tax
rate.
9.
Pursue international financial negotiations.
10.
Assistance to Eastern Europe and the Soviet Union.
11.
Investigate violations in the government securities market.
II. SURVEY OF KEY ISSUES
SECRETARIAL ACTIVITIES
-
September 17-20. Secretary Brady will travel to the Soviet
Union to establish contacts with the new Soviet economic
team. The Secretary plans to discuss Soviet economic
reforms and to review the steps and timetable for possible
Soviet membership in the international financial
institutions.
October 15-17. Secretary Brady will lead the U.S.
delegation to the IMF/World Bank annual meetings in Bangkok.
He will also participate in meetings of the IMF Interim
Committee, the Joint IMF/World Bank Development Committee,
and G-7 and G-10 Finance Ministers meetings. Key issues
will be the outlook for the world economy, Soviet relations
with the international financial institutions (IFIs), and
the debt situation of the developing countries.
Treasury Department
Page 2
LEGISLATIVE ACTIVITIES
The Financial Institutions Safety and Consumer Choice
Act of 1991 will be Treasury's top legislative priority
this fall. We expect legislation to be enacted by
Congress before year-end. There will be extensive
testimony, briefings, speeches, review of amendments,
meetings with interest groups, and many other similar
activities.
-
The Enterprise for the Americas Initiative. In this
quarter Treasury will seek Congressional authority for
additional debt reduction, our contribution to the
Multinational Investment Fund, and Ex-Im Bank and CCC
debt swap authority. The Environment for the Americas
Board will become operational in its role of overseeing
the environmental element of EAI. Its first meeting
will be held in September.
Oversight Board Activities. Deputy Secretary Robson
will testify before the House Banking Committee
Subcommittee on Financial Institutions Supervision to
report on the RTC's funding needs and on RTC's progress
in resolving failed thrifts and selling assets.
Secretary Brady is scheduled to deliver the Oversight
Board's required semi-annual report to Congress in
November. Secretary Brady, as Chairman of the
Oversight Board, and other top Treasury Officials will
conduct meetings and conferences with members of
Congress. The Secretary is also scheduled to chair two
public Oversight Board meetings in November.
-
Salomon Brothers. Treasury's Offices of Domestic Finance
and Fiscal Affairs will continue to assist the SEC
investigation of Salomon Brothers violations of Treasury
auction rules and possible violations of securities and
other laws in government securities auctions. These
violations have prompted a broad investigation of whether
there have been widespread violations in the industry and an
analysis of the adequacy of Federal legal and regulatory
authority. Treasury has recently announced changes to
promote integrity in the marketplace. The Department will:
require large customers to verify large bids in writing;
publicly disclose information on Treasury borrowing needs
two days before the announcement of regular mid-quarter
funding; accelerate its joint auction automation project
with the Fed; formalize information sharing with the Fed
and the SEC through a permanent market surveillance
operating group; and codify Treasury auction rules.
Treasury Department
Page 3
-
Government Securities Act Reauthorization. A standard
re-authorization of Treasury's rule making authority
under the Government Securities Act has been
complicated by the Salomon Brothers securities
violations. The Senate passed S. 1247, which
permanently reauthorizes the act, prior to the August
recess. Congressman Markey has introduced a competing
bill in June which would grant the SEC rulemaking
authority over access and dissemination of transaction
information for auctions and restrict Treasury to a
consultative role. Treasury will submit a study of
government securities market regulation and will report
findings to Congress by December 4. In the interim
period, both the House and the Senate will hold
hearings which may alter the legislation.
-
BCCI. The worldwide collapse of the Bank of Commerce and
Credit International has focused media and Congressional
attention on the bank's operations. Treasury will be an
active participant in investigations and hearings throughout
the fall regarding the illegal activities of BCCI.
IMF Quota Legislation. Congress will resume
consideration of legislation providing for
authorization and appropriations in the FY 1992 budget
for an approximately $12 billion increase in the U.S.
quota in the International Monetary Fund (IMF) and
approval of the amendment of the IMF Articles of
Agreement. The Senate Foreign Relations Committee is
currently considering authorization. The House Banking
Committee may consider legislation in late September.
The deadline for completing the quota increase is
December 1991.
Government-Sponsored Enterprises (GSEs). Treasury
will be working on the passage of legislation to
improve the financial regulation of GSEs. There may be
controversy concerning capital requirements, the
regulatory structure, identity of the regulator, and
the extent of the enforcement powers granted to the
regulators. Treasury is proposing that it regulate
Sallie Mae.
National Drug Control Strategy for 1992. Treasury
plans to work closely with ONDCP in developing the 1992
Drug Strategy. Treasury will continue to play a key
role in the areas of drug interdiction and money
laundering.
Treasury Department
Page 4
AGENCY/BUREAU NEWS
Tax Systems Modernization. The Internal Revenue
Service is comprehensively updating their information
system to improve all aspects of taxpayer services and
compliance operations. The modernization effort is
expected to reduce taxpayer burden, enhance levels of
service to the public, increase voluntary compliance,
and minimize costs to the government. This program
compliments IRS efforts to pass a tax simplification
bill.
Asset Forfeiture. Treasury and Justice will continue
to prepare a series of amendments to legislation to
modify the existing Justice and Customs Forfeiture
Funds. The changes will focus on streamlining the two
funds and on making them more parallel in operation and
in redefining the permissible uses of seized assets.
REGULATIONS
REPORTS/STUDIES
Insurance Industry Review. The Office of Domestic
Finance continues to conduct a review of the insurance
industry. A formal study will not be published but the
Secretary has promised to share the Department's
findings with Capitol Hill. Treasury has worked with
OMB to prepare a briefing for Minority Members on the
Administration's views on the industry. Also Treasury
will continue to work with Justice in their interagency
review of insurance anti-trust laws.
Credit Availability. The Treasury Department is working
with each of the four federal bank and thrift regulators,
the Office of the Comptroller of the Currency, the FDIC, the
Office of Thrift Supervision, and the Federal Reserve Board
to collect information on credit availability. This
information will be used to formulate practical solutions to
improve credit availability for sound borrowers. The OCC
will survey national banks with large commercial real estate
portfolios regarding their lending practices. Senior OCC
management will conduct follow up meetings with chief
executive and lending officers. Also, the OCC and the OTS
will be conducting congressionally sponsored regional credit
crunch meetings.
Treasury Department
Page 5
-
Condition of the Banking System. The OCC continues to
monitor the condition of the banking system and shares its
findings with other agencies, Congressional committees, and
the general public. Updates to its 1990 year-end report
will be available in September and December.
MEETINGS/NEGOTIATIONS
Relations with the Soviet Union. Recent turmoil in the
Soviet Union and its former republics will demand close
attention. Major issues to be addressed are: the Soviet
request for membership in the International Financial
Institution (IFIs) and the treatment of the independent
republics by the IFIs; the progress of economic reforms; and
the coordination of technical and humanitarian assistance.
Financial Sector Technical Assistance in East Europe.
The Treasury Department is assisting Central and
Eastern European countries to develop private financial
institutions and to reform governmental regulatory and
policy agencies. Technical assistance is being
coordinated by the offices of International Affairs,
Domestic Finance, and the IRS. The major activities
include providing logistical support in establishing
financial markets and providing training to official
agencies in the formulation of tax policy and the
administration of tax systems.
Financial Negotiations. Treasury is conducting financial
negotiations with a wide range of countries in both
multilateral and bilateral context. These efforts include
participation in the Uruguay Round and NAFTA and
negotiations with Japan, Korea, China, and Taiwan. The
objectives of these negotiations are to open financial
markets to U.S. firms and to insure that those firms receive
fair and equitable treatment after they have been
established.
OFFICE OF THE UNITED STATES
TRADE REPRESENTATIVE
EXECUTIVE OFFICE OF THE PRESIDENT
WASHINGTON
20506
September 13, 1991
MEMORANDUM FOR EDE HOLIDAY
ASSISTANT TO THE PRESIDENT
AND SECRETARY OF THE CABINET
FROM:
GARY R. EDSON mab for
CHIEF OF STAFF AND COUNSELOR
SUBJECT:
1991 Fall Issues Assessment
The following report summarizes key issues and activities at the
Office of the U.S. Trade Representative for September 15 to
December 31, 1991.
HIGHEST PRIORITIES
Pursue the successful conclusion of the Uruguay Round of
Multilateral Trade Negotiations, in accordance with G-7
London Economic Summit commitments.
Pursue the negotiation of a North American Free Trade
Agreement (NAFTA).
Conduct meaningful and substantive consultations with the
Congress and private sector on the Uruguay Round and NAFTA
negotiations.
Pursue the successful conclusion of the Government
Procurement Code negotiations.
Implement the President's Enterprise for the Americas
Initiative (EAI).
Seek enactment of Andean Trade Preference legislation.
Complete negotiation of bilateral trade and investment
agreements with reforming Eastern European countries and the
USSR and seek speedy legislative approval for the
agreements.
Resolve the Canada Softwood Lumber MOU issue.
MEMORANDUM FOR EDE HOLIDAY
from Office of the United States Trade Representative
September 13, 1991
Page 2
Implement the President's Trade Enhancement Initiative for
Central and Eastern Europe by conducting a special,
expedited review of GSP benefits for the region.
Work toward resolving key outstanding trade issues with
Japan, including issues under the Structural Impediments
Initiative (SII).
Take appropriate steps to implement the President's
requirements to obtain commitments from the People's
Republic of China (PRC) that resolve U.S. concerns on
intellectual property rights and market access issues.
Work to resolve trade issues with PacRim countries,
including improvement in intellectual property protection in
Thailand and India; also begin negotiation of trade
liberalization priorities with ASEAN under the December 1990
MOU.
SECRETARIAL ACTIVITIES (SUBJECT TO CHANGE)
September 16
Ambassador Hills will meet with the Senate
Finance Committee in Executive Session to
discuss the Uruguay Round and the NAFTA
negotiations.
September 17
Ambassador Hills will participate in a White
House briefing with the President for
representatives of the national Hispanic
community. Topics for discussion will
include the Uruguay Round and NAFTA
negotiations.
September 17
Ambassador Hills will attend a meeting of the
Advisory Committee on Trade Policy and
Negotiations (ACTPN).
September 18
Ambassador Hills will meet with Peruvian
President Fujimori to discuss trade and
investment policy issues.
September 18
Ambassador Hills will meet with leaders of
the Hispanic organization La Raza to discuss
the NAFTA negotiations.
MEMORANDUM FOR EDE HOLIDAY
from Office of the United States Trade Representative
September 13, 1991
Page 3
September 20
Ambassador Hills will address the
International Forum of the U.S.-Hispanic
Chamber of Commerce in Chicago.
September 23
Ambassador Hills will meet with Carlos
Ferrer, President of UNICE.
September 23
Ambassador Hills will meet with
representatives of the Swedish-American
Chamber of Commerce to discuss the Uruguay
Round negotiations.
September 23
Ambassador Hills will be the keynote luncheon
speaker at a meeting in Washington of the
Korean Institute of America.
September 24
Ambassador Hills will meet with Indian
Minister of State for Commerce P. Chidambaram
and other Indian government officials to
discuss bilateral trade issues.
September 27
Ambassador Hills will discuss the NAFTA
negotiations with Mexican Secretary of
Commerce Jaime Serra Puche and Canadian Trade
Minister Michael Wilson during a regularly
scheduled biweekly conference call.
September 29
Ambassador Hills will participate in a Round
Table discussion of International Trade
Policy at Stanford University. The round
table is being held in conjunction with
Stanford's 100th Anniversary observance.
September 30
Ambassador Hills will travel to Milwaukee,
Wisconsin to address a meeting of the Midwest
U.S.-Japan Association, and do a fundraiser
for Senator Bob Kasten.
October 1
Ambassador Hills will be the keynote speaker
at the American Business Conference's Annual
Meeting in Washington.
October 4-7
Ambassador Hills will travel to New Delhi for
meetings with Prime Minister Rao, Commerce
Minister Chidambaram, and Finance Minister
Singh.
MEMORANDUM FOR EDE HOLIDAY
from Office of the United States Trade Representative
September 13, 1991
Page 4
October 8-10
Ambassador Hills will meet with the ASEAN
Economic Ministers in Kuala Lumpur.
October 11-12
Ambassador Hills will travel to Singapore to
sign the U.S.-Singapore Framework Agreement
with Deputy Prime Minister and Minister of
Trade and Industry Lee Hsien. Ambassador
Hills will also meet with Prime Minister Tong
and Senior Minister Yew.
October 13-14
Ambassador Hills will travel to Hong Kong for
meetings with government officials.
October 17
Ambassador Hills will participate in a
meeting of the ACTPN NAFTA Task Force chaired
by Kay Whitmore.
October 18
Ambassador Hills will be the keynote speaker
at the CSIS Global Leadership 2000 Forum.
October 22
Ambassador Hills will participate in a
meeting of the Services Policy Advisory
Committee (SPAC).
October 24
Ambassador Hills will participate in a
meeting of the Labor Policy Advisory
Committee (LAC)
October 24-25
Ambassador Hills will be in California for
fundraisers for Senator Seymour and other
Republican House members.
October 26-28
Ambassador Hills will travel to Zacatecas,
Mexico for trilateral talks on the NAFTA with
her Canadian and Mexican counterparts.
October 29
Ambassador Hills will speak before the OAS
Trade Conference in Washington on the
Enterprise for the Americas Initiative (EAI)
She will also meet with OAS Trade Ministers
to continue the dialogue on EAI begun at the
August 12 meeting of regional trade ministers
in Costa Rica.
November 1
Ambassador Hills will be in Farmington,
Connecticut for a fund raising breakfast for
Congresswoman Nancy Johnson.
MEMORANDUM FOR EDE HOLIDAY
from Office of the United States Trade Representative
September 13, 1991
Page 5
November 7
Ambassador Hills will participate in a
meeting of the Industry Policy Advisory
Committee (IPAC).
November 10-15
Ambassador Hills will travel to Seoul, Korea
for the APEC Ministerial meeting.
November 19
Ambassador Hills will attend a meeting of the
Defense Policy Advisory Committee (DPACT).
November 22
Ambassador Hills will discuss the NAFTA
negotiations with Mexican Secretary of
Commerce Jaime Serra Puche and Canadian
Minister Michael Wilson during a regularly
scheduled biweekly conference call.
November 26
Ambassador Hills will attend the meeting of
the U.S.-Chilean Trade and Investment
Council.
November
Ambassador Hills will participate in the
U.S.-EC Ministerial Meeting in the Hague.
November
Ambassador Hills will travel to Japan to
discuss the Uruguay Round, progress of the
SII, and specific sectoral trade issues.
December 5
Ambassador Hills will be the keynote speaker
at a NAFTA conference in Tucson, Arizona
hosted by Congressman Jim Kolbe.
December 20
Ambassador Hills will discuss the NAFTA
negotiations with Mexican Secretary of
Commerce Jaime Serra Puche and Canadian Trade
Minister Michael Wilson during a regularly
scheduled biweekly conference call.
LEGISLATIVE ACTIVITIES
September 23
Ambassador Katz will testify before the House
Ways and Means Committee on the U.S.-Soviet
Trade Agreement.
MEMORANDUM FOR EDE HOLIDAY
from Office of the United States Trade Representative
September 13, 1991
Page 6
September/
December
Consult on the NAFTA and Uruguay Round
negotiations with all 23 congressional
committees with jurisdiction, as well as with
ad hoc advisory groups, and interested
members and staff.
September/
December
Work with the Department of State and
National Security Council as soon as (if) the
conditional China MFN bills are taken up in
conference.
September/
December
Seek approval of the U.S.-Soviet Trade
Agreement, and legislation normalizing trade
relations with the Baltics.
September/
December
Seek enactment of the Andean Trade Preference
Act of 1991. Possible House Ways and Means
Committee hearing/mark-up in
September/November.
September/
December
Seek enactment of legislation to graduate
Hungary and Czechoslovakia from Jackson-Vanik
requirements.
September/
December
Seek approval under fast-track of the U.S.-
Mongolian and U.S.-Bulgarian Trade
Agreements.
URUGUAY ROUND NEGOTIATIONS
Intensive negotiations in Geneva resume in September under GATT
auspices. USTR representatives will lead interagency teams to
participate in negotiations throughout the fall, following up on
G-7 London Economic Summit commitments. Scheduled meetings thus
far include:
September 16
USTR leads U.S. delegation to agriculture
(week of)
negotiations.
September 16
USTR will lead services talks with Uruguayan
experts in Montevideo.
MEMORANDUM FOR EDE HOLIDAY
from Office of the United States Trade Representative
September 13, 1991
Page 7
September 16
USTR leads interagency delegation to
negotiations on intellectual property.
September 16-30
USTR leads interagency delegation for
bilateral negotiations on access with 25
countries.
September 18
USTR will lead services talks with Argentine
experts in Buenos Aires.
September 19-27
USTR leads interagency delegation to services
negotiations.
September 23
Ambassador Katz will conduct consultations in
(week of)
Geneva on the Round.
September 23
USTR leads interagency delegation for
meetings on dispute settlement.
September 23
Ambassador Lavorel will attend a monthly
meeting in France of "Quad (U.S., EC, Japan,
and Canada) Coordinators" responsible for
coordination of the Round.
September 26
Ambassador Katz will address CEO's of U.S.
subsidiaries in Berne, Switzerland, at
request of Ambassador Gildenhorn.
September 27-28
Ambassador Lavorel and other Quad
coordinators will attend a meeting in Geneva
with negotiators on GATT rules.
September 30
USTR leads interagency delegations to
(week of)
meetings on GATT rulemaking issues
(antidumping and subsidies) and investment.
September 30
USTR leads interagency delegation to meetings
on textiles.
September/
December
USTR representatives will lead an interagency
delegation to Uruguay Round negotiations on a
multilateral steel agreement. The intention
of these negotiations is to resolve issues
and conclude negotiations by December.
October 1-5
USTR leads interagency delegation to meetings
on agriculture.
MEMORANDUM FOR EDE HOLIDAY
from Office of the United States Trade Representative
September 13, 1991
Page 8
October 13-14
Ambassador Lavorel will attend monthly Quad
Coordinators meeting. (Venue TBD).
October 21-
November 1
USTR leads interagency delegation to meetings
on services.
October 23
USTR leads interagency delegation to meetings
(week of)
on agriculture.
OTHER NEGOTIATIONS/MEETINGS
September 16
Meeting of the FTA Working Group of the EAI/
U.S.-Chilean Trade and Investment Council in
Santiago.
September 16-17
Ambassador Sorini will meet with
Czechoslovakia officials to renegotiate a
bilateral textile and apparel agreement in
accordance with the terms of the President's
Eastern Europe Initiative.
September 17
USTR will defend the United States before a
GATT panel considering Brazil's complaint
regarding U.S. countervailing duties on
Brazilian footwear.
September 18-23
USTR will lead delegation to Hungary and
Bulgaria to conduct GSP seminars and assist
in preparing petitions to add products to the
GSP program.
September 19
USTR representatives to participate in Auto
Parts Advisory Committee meetings.
September 24-26
Ambassador Sorini will meet with Polish
officials to renegotiate a bilateral textile
and apparel agreement in accordance with the
terms of the President's Eastern Europe
Initiative.
September 26
USTR will represent the United States before
a GATT Subsidies Code panel convened at our
request to examine Canadian countervailing
duties on corn from the United States.
MEMORANDUM FOR EDE HOLIDAY
from Office of the United States Trade Representative
September 13, 1991
Page 9
September 26-27
USTR representatives will present case
against Airbus subsidies in conciliation
phase of GATT Subsidies Code dispute
settlement case initiated by the United
States.
September 30
Meeting of the EAI/U.S.-Venezuelan Trade and
Investment Council in Washington, D.C.
September 30
Ambassador Katz will meet in Canada with his
Canadian and Mexican counterparts to discuss
the NAFTA negotiations.
September
USTR representatives lead Environmental
Review with regard to Mexico and the NAFTA.
September
USTR leads negotiations with Brazil and
Argentina concerning intellectual property
rights reform.
September/
December
USTR will conduct the 1991 GSP Annual Review,
as well as a special, expedited GSP review
for the countries of central and eastern
Europe.
September/
December
USTR will conduct two GSP seminars in Africa
in support of the Partnership for a New
Africa Initiative.
September/
December
USTR representatives and an interagency
negotiating team will continue NAFTA
negotiations with the Governments of Canada
and Mexico.
September/
December
USTR representatives will lead an interagency
delegation to the OECD negotiations on
eliminating obstacles to trade in ships. The
intention is to reach agreement by December.
MEMORANDUM FOR EDE HOLIDAY
from Office of the United States Trade Representative
September 13, 1991
Page 10
September/
December
USTR will chair the U.S. -Japan Trade
Committee annual meeting in Hawaii. Agenda
tentatively includes annual review of the
implementation of Super 301 agreements
reached in June 1990 on supercomputers,
satellites, and wood products. Side meetings
of subcommittees on computers, paper, glass,
food safety, and legal services are also
planned.
September/
December
USTR will co-chair (with State and Treasury)
SII follow-up meetings to discuss progress in
implementing commitments contained in first
Annual SII Report of June 1990.
September/
December
Seek resolution with the EC of impairment of
duty free bindings on corn gluten feed and
oilseeds.
September/
December
Seek to extend expiring bilateral textile
agreements with Egypt, India, Malaysia,
Pakistan, Peru, the Philippines, and
Trinidad and Tobago.
October 1
USTR representatives will defend the United
States before a GATT panel convened at the
request of Canada to examine U.S. alcoholic
beverage control practices affecting imports
of beer and wine from Canada.
October 1-4
USTR will hold public hearings and solicit
comments on the petitions accepted in the
1991 GSP Annual Review.
October 3-4
USTR representative will participate in
Working Group on Basic Protocol of the
European Community Energy Charter.
October 7
USTR will represent the United States in
conciliation by the GATT Antidumping
Committee on the U.S. complaint regarding
Korean antidumping duties on polyacetal
resins from the United States.
MEMORANDUM FOR EDE HOLIDAY
from Office of the United States Trade Representative
September 13, 1991
Page 11
October 8
GATT Council will establish a panel at the
request of the United States to examine the
EC Third Country Meat Directive that
adversely affects U.S. meat exports to the
EC.
October 9-10
Ambassador Sorini will meet with Hungarian
officials to renegotiate a bilateral textile
and apparel agreement in accordance with the
terms of the President's Eastern Europe
Initiative.
October 17
Meeting of the EAI/U.S.-Bolivian Trade and
Investment Council in La Paz.
October 21
USTR representative will lead delegation
consulting with the People's Republic of
China regarding implementation of launch
services agreement.
October 21
Meeting of the EAI/U.S.-Costa Rican Trade and
Investment Council in San Jose.
October 28
USTR will defend the United States before a
GATT Procurement Code panel that was convened
at the request of the EC to examine U.S.
government procurement of sonar mapping
services.
October 31
Meeting of the EAI/U.S.-ABUP (Argentina,
Brazil, Uruguay and Paraguay) Trade and
Investment Council in Washington, D.C.
October
USTR representatives will lead U.S.
delegations to meetings of the GATT Aircraft
Committee and the Subsidies Code Committee on
U.S. Airbus and FRG exchange rate dispute
settlement cases.
October
USTR representative will lead U.S. delegation
to the initial consultations with the
Japanese under the 1991 U.S.-Japan
Semiconductor Agreement.
October
USTR will lead discussions on a bilateral
investment treaty with Argentine experts in
Buenos Aires.
MEMORANDUM FOR EDE HOLIDAY
from Office of the United States Trade Representative
September 13, 1991
Page 12
October
USTR expects to sign a bilateral export
subsidies agreement with Argentina.
October
USTR will coordinate U.S. participation in
two UNCTAD-sponsored, regional GSP seminars
in Poland for representatives from Bulgaria,
Czechoslovakia, Hungary, Poland, Romania, and
Yugoslavia.
November 5
Meeting of the EAI/U.S. -Salvadorean Trade and
Investment Council in Washington, D.C.
November 12
GATT Council likely to consider adoption of
panel report adverse to the United States
regarding U.S. import restrictions on Mexican
tuna to prevent tuna fisheries' destruction
of dolphin.
November 20
Meeting of the EAI/U.S. -Nicaraguan Trade and
Investment Council in Washington, D.C.
November 26
Meeting of the EAI/U.S.-Chilean Trade and
Investment Council in Washington, D.C.
November
USTR will defend the United States before a
GATT Subsidies Code panel convened at
Norway's request to examine U.S.
countervailing duties on salmon from Norway.
November
USTR will defend the United States before
three panels convened under the GATT
Antidumping Code at the request of Norway,
Mexico, and Hong Kong, respectively, to
examine U.S. antidumping duties on salmon
from Norway, cement from Mexico, and sweaters
from Hong Kong.
December 16
Meeting of the EAI/U.S.-Peruvian Trade and
Investment Council in Washington, D.C.
December
USTR expects to sign a bilateral investment
treaty with Jamaica.
MEMORANDUM FOR EDE HOLIDAY
from Office of the United States Trade Representative
September 13, 1991
Page 13
REPORTS
September 18
GATT Panel convened at request of United
States will issue its report regarding
Canadian provincial practices affecting U.S.
beer exports to Canada.
September 30
The annual determination of the President
that the steel industry has met the
conditions set out in the Trade and Tariff
Act of 1984 necessary to extend the Voluntary
Restraint Agreement Program must be reported
to Congress. A recommended determination
from Ambassador Hills has been transmitted to
the White House for the President's
signature.
December 31
Presidential report due to Congress
certifying compliance of Hungary with
Jackson-Vanik.
OTHER ACTIVITIES/EVENTS
September 30
Administration must decide what next steps to
take under section 301 if the EC has not
agreed to an extension of our bilateral
agreement regarding EC Enlargement.
September 30
Orderly Marketing Arrangement (OMA) on
tungsten from China expires.
September 30
Deadline set during August 20-23 market
access talks for Chinese response to U.S.
proposals.
September 30
Meat Import Act: 4th quarter estimates due;
could trigger import quotas on meat.
September/
December
Continue work with Customs Service to combat
textile and apparel quota fraud; seek
consultations with trading partners as
necessary.
October 1
Announcement of U.S. sugar import quota
allocations to foreign exporting countries.
MEMORANDUM FOR EDE HOLIDAY
from Office of the United States Trade Representative
September 13, 1991
Page 14
October 13
Administration must notify Congress of
actions taken under the Pelly Amendment in
response to certification of Taiwan and Korea
for driftnet fishing violations.
October 23
Administration must notify Congress of
actions taken under the Marine Mammal
Protection Act in response to Mexico's purse
seine fishing that destroys dolphin.
November 26
Deadline for determinations on actionability
and retaliation in India IPR protection and
China IPR protection Section 301
investigations, unless extended to February
26, 1992.
December 21
Deadline for determinations on actionability
and retaliation in Thai copyright enforcement
Section 301 case.
December 26
Deadline for implementation of retaliation
under section 301, if any, against India and
China in response to inadequate intellectual
property protection.
December 29
Deadline for determinations on actionability
and retaliation under section 301 regarding
Canadian provincial practices affecting U.S.
beer exports, unless GATT dispute settlement
is concluded earlier, in which case the
deadline is 30 days after the conclusion of
dispute settlement.
December 31
Machine Tool VRAs with Taiwan and Japan
expire.
December 31
Expiration of extension of EC Enlargement
Agreement.
THE DEPUTY SECRETARY OF VETERANS AFFAIRS
WASHINGTON
September 16, 1991
MEMORANDUM FOR EDE HOLIDAY
ASSISTANT TO THE PRESIDENT
AND SECRETARY OF THE CABINET
FROM: Anthony J. Principi
SUBJECT: 1991 Fall Issues Assessment - September 15 - December 31, 1991
DEPARTMENT GOALS
The Secretary seeks to improve the process of public sector management and believes
that VA can make an important contribution in that regard, not only for veterans, but
for all Americans who look to their government for services. To that end, he has set
two primary standards against which VA's actions are measured. The first is quality.
He has directed that VA make quality of service and operations fixed reference points
towards which all VA actions be directed. The second is management. He want VA to
be the best managed service delivery organization in the Federal Government.
I. HIGHEST PRIORITIES-SUMMARY LISTING
Health
Simplify the criteria for health care eligibility and develop a comprehensive
continuum of health care offering a full range of services from preventive medicine
to hospice care.
Review the recommendations of the Commission on the Future Structure of
Veterans Health Care and the recommendations of the Health Research Policy
Advisory Committee for possible implementation.
Engage in a dialogue with other Federal and private sector health care
policymakers to assess, clarify, and determine VA's role in National health policy
and the U.S. health community.
Benefits
Continue the modernization of VA's automated data processing and
telecommunications systems to ensure accurate and timely benefits delivery.
Regionalize and collocate veterans benefits processing to improve effectiveness.
Provide 75% of veterans with an open national or state cemetery within 75 miles of
their homes.
Management
Implement a Department-wide philosophy of Total Quality Management with a
specific emphasis on quality assurance in medical care and on customer service in
veterans benefits delivery.
CONTENTS
I. HIGHEST PRIORITIES -- SUMMARY LISTING
1
II. SURVEY OF KEY ISSUES
A. SECRETARIAL ACTIVITIES
4
B. DEPUTY SECRETARIAL ACTIVITIES
5
C. PREVIOUSLY REPORTED INITIATIVES AND POLICIES
6
Comprehensive Health Care Improvement
Commission on the Future Structure of Veterans Health Care
Medical Care Quality Management
Federal Pharmacy
VA Supported Housing (VASH) Program
Joint SSA/VA Pilot Project for Homeless Veterans
Policy Governing "Life Sustaining" Medical Therapy
Persian Gulf Registry
Rationalization of VA-DOD Benefits
D. ADDITIONAL INITIATIVES AND POLICIES
8
Secretary's Policy Board Established
Total Quality Management
Benefits Delivery System Improvements
Medical Care Cost Recovery
Resource Planning and Management
Radiological Preparedness
Rural Health
HIV Infected Health Care Workers
Intergovernmental Health Policy Committee
E. PREVIOUSLY REPORTED SIGNIFICANT PROBLEM AREAS
9
Pharmaceutical Prices
Operation of VA's Supply Fund
Ethics Reform Act of 1989
Lawsuit Delays Expansion of Calverton National Cemetery
Maintenance of the National Cemetery System
Fiscal Year 1992 Budget Impact
F. ADDITIONAL PROBLEM AREA
10
Surgical Program Realignment
G. LEGISLATIVE ACTIVITIES
10
Omnibus VA Health Benefits
Marriage and Family Counseling
Homeless
Dependency Indemnity Compensation (DIC) Reform
Persian Gulf Veterans Education Benefits
Guarantee Securities Backed by Vendee Loans
Foreclosure Alternatives Notification
Reserve Eligibility
H. REGULATIONS
12
Budget Reconciliation Act Provisions
Rating Schedule Review
Veterans Benefits Programs Improvement Act of 1991 (PL 102-86)
Health Effects of Exposure to Agent Orange
Medical Care Rate Revision
National Practitioner Data Bank
I. REPORTS/STUDIES
13
VA/DOD Study on Psychological Aftereffects of Desert Storm
PTSD Study
Five Year Medical Facility Development Plan
National Survey of Veterans
Survey of Health Effects of Mustard Gas and Lewsite
J. MEETINGS OR EVENTS
14
Dr. Joseph Juran to Address VA Executives
National POW/MIA Recognition Day
98th AMSUS Convention
Veterans Day 1991
VA Holiday Concert
Fiftieth Anniversary of Pearl Harbor
K. NEGOTIATIONS
14
Construction of San Joaquin Valley National Cemetery
Construction of VA Hospital in Hawaii
Medical Care Cost Recovery--VA/DOD
Dioxin-related Scientific Literature Review
Clinical Laboratory Improvement Act (CLIA)
CHAMPUS
Federal Coordinating Centers
L. COURT DECISIONS/LITIGATION
16
VA Mass Review of Psychiatric Ratings in Puerto Rico
Dioxin Disability Claims
Limitation on Compensation to Incompetent Veterans
VA Employee Drug Testing Program
Limits on Contractor Claims
M. DEPARTMENT NEWS
17
Telecommunication Device for the Deaf (TDD)
Radiation Helpline
Match of Beneficiary Rolls with Files of IRS AND SSA
Ban on Tobacco Sales at VA Medical Centers
Martinez Closing
East Central Florida
New GRECC Sites
Released Hostage Treated at VA
Drug Free Workplace
N. OTHER
18
Public Financial Disclosure Requirements for VA Physician
Proposed New National Cemeteries
II. SURVEY OF KEY ISSUES
A. SECRETARIAL ACTIVITIES - Secretary Derwinski will participate in the
following activities:
Sept. 16 address the Veterans Benefits Administration's Regional Office of Directors
in Baltimore, Maryland. This speech will address the lessons learned from
Desert Storm and budget issues.
Sept. 17
attend the opening ceremony for Hispanic Heritage Month at VA Central
Office.
Sept. 18 travel to Denver, Colorado to address a regional meeting of VA Medical
Center Directors Conference. This speech will highlight the lessons learned
from Desert Storm and what to expect from the Commission on the Future
Structure of Veterans Health Care.
Sept. 22
travel to Dupage County, Illinois for the Welcome Home Vets Parade and
Celebration.
Sept. 26 address the 7th Annual Hellenic-American Leadership Conference in
Washington, D.C. This speech will highlight the importance of the
conference in building international trade and business relationships.
Sept. 28
travel to Lamont, Illinois to give a speech on the liberation of Eastern
Europe at the Lithuanian Cultural Center.
Oct. 5
travel to Togus, Maine to attend the dedication of the clinical addition at the
Togus VA Medical and Regional Office Center.
Oct. 8
give the opening remarks to recognizie National Disability Employment
Awareness Month in the Department of Veterans Affairs.
Oct. 13
travel to New York, New York to attend a dinner in honor of His Eminence
Archbishop Iakovos, Greek Orthodox Archbishop of North and South
America.
Oct. 16
address the Congressional Youth Leadership Council in Washington, D.C.
Oct. 18
speak at the dedication of the outpatient clinic at the VA Medical Center in
Savannah, Georgia.
Oct. 23
present the awards for the 1991 U.S. Savings Bond Campaign.
Oct. 24-26 attend the VA Executive Retreat.
Oct. 28 address the Close-up Foundation Students in Washington, D.C.
Nov. 8
speak at the National Republican Heritage Group Council Annual
Convention in Arlington, Virginia. This speech will address "Winning in
1992".
Nov. 11
speak at the Veterans Day Ceremony at Arlington National Cemetery.
Nov. 12 be the keynote speaker for the opening session of the VA Senior
Management Conference in Washington, D.C.
Nov. 13
travel to Worth, Illinois to address the Worth Area Chamber of Commerce
on the "Status of the Economy".
4
II. SURVEY OF KEY ISSUES
A. SECRETARIAL ACTIVITIES (con't) -
Nov. 20 make the award presentations at the VA EEO awards ceremony in
Washington, D.C.
Dec. 7
travel to Hawaii to attend the 50th Anniversary of the Bombing of Pearl
Harbor.
Dec. 9
travel to Guam to attend the 50th Anniversary of the Invasion of Guam.
Dec. 14 attend the Bush-Quayle Holiday Ball as Chairman of the Ball.
4a
B. DEPUTY SECRETARIAL ACTIVITIES - Deputy Secretary Principi will
participate in the following activities:
Sept. 17 travel to Baltimore, Maryland to be the luncheon speaker for the Veterans
Benefits Administration's Regional Office Directors Conference. This speech
will detail VBA management issues and TQM.
Sept. 23 travel to Reno, Nevada to attend the 45th annual Convention of the National
Association of State Directors of Veterans Affairs. This speech will outline the
importance of the partnership between Congress, VA and State Director's of
Veterans Affairs in serving the nation's veterans.
Oct. 4 travel to Detroit, Michigan to attend the groundbreaking ceremony for the
Allen Park replacement Medical Center.
Oct. 8 give the opening remarks at the National Disability Employment Awareness
Month program in Washington, D.C.
Oct. 24 give the keynote address to the National Association of Veterans Program
Administrators' Annual Conference in Washington, D.C.
Nov. 6 travel to Las Vegas, Nevada to be the keynote speaker for the Federal Health
Care Luncheon at the 34th Annual Conference and Convocation of the
American Academy of Medical Administrators.
Nov. 14 be a speaker at the 1991 VA Senior Management Conference in Washington,
D.C. This speech will stress the importance of TQM, innovation, and strategic
management.
Nov. 22 travel to Tampa, Florida to be the keynote speaker at the Veterans in Business
Opportunity Conference.
Dec. 5 address the World Congress on Technology in Washington, D.C. This speech
will address issues on the development and usè of technology to advance
employment of people with disabilities.
5
C. PREVIOUSLY REPORTED INITIATIVES AND POLICIES
Comprehensive Health Care Improvement: Current eligibility rules for VA health
services are complex, difficult for veterans to understand, do not permit a continuum of
care, and are inconsistent with good medical practice. VA is reviewing eligibility laws
and regulations for VA health care and expects to present a proposal to the Congress
with the President's budget in January to simplify eligibility rules and permit eligible
veterans to receive a full range of health services. Discussions are ongoing with OMB
on the proposal. We are already receiving reaction from the veterans organizations who
are concerned over any possible limitation in service to any subgroup of veterans.
Commission on the Future Structure of Veterans Health Care: The Secretary of
Veterans Affairs appointed 15 prominent experts in health care policy, administration,
and delivery to conduct an objective examination of the VA health care system. The
Commission's review is intended to provide the Secretary with recommendations on how
best to structure the VA health care system to meet veterans' health care needs in the
future. The Commission members have begun to crystallize their recommendations and
the final report is scheduled to be presented to the Secretary in October. The Secretary
expects to make the report public shortly after receiving it and to establish an
interdepartmental task force to review it for possible implementation.
Medical Care Quality Management: The Department's Veterans Health Administration
is pursuing significant changes and improvements in quality management programs. VA
is:
o revising regulations to clarify confidentiality of quality assurance material. Proposed
revisions have been developed by a field task force and are in legal review prior to
being published in the Federal Register.
o testing national utilization management criteria to improve medical resource
utilization review and reduce lengths of stay. A nine-month pilot study will begin at
24 randomly selected VA medical centers by the end of this calendar year.
o creating a Surgical Risk Assessment Model to prospectively predict surgical
mortality and morbidity for most surgical procedures performed. Clinical data
collection has begun at 44 VA medical centers.
o revising the Patient Incident Reporting Program policy to reflect VA's commitment
to continuous quality improvement. The policy is currently being reviewed and is
expected to be printed in December.
o integrating the Patient Representative Program into VA's quality improvement
efforts. Revised procedures have been prepared and are being coordinated
internally.
o using a quality management checklist to measure important areas of quality and
focus attention on areas needing improvement in VA medical centers. Data
collection using the checklist will begin on October 1.
o implementing a standardized system for credentialing and privileging physicians and
dentists. The system has been implemented and nationwide training through satellite
teleconferencing was held September 5. The VA Inspector General will commence
a compliance audit in the first quarter of Fiscal Year 1992.
6
o developing an external peer review program using the Department of Defense's
program as a model. Use of a totally external review process with private sector
medical record abstracters and private sector physician peer reviewers will provide a
valid level of credibility to the VA peer review effort. Proposals are due from
prospective contractors by October 5 and contract award is expected in December.
Federal Pharmacy: VA, the Department of Health and Human Services, and the
Department of Defense are examining opportunities to control pharmaceutical
expenditures and improve all other pharmaceutical services. It is anticipated that a
memorandum of understanding will be developed between the three departments.
VA Supported Housing (VASH) Program: VA and HUD are planning a joint pilot
project to provide permanent housing and ongoing treatment services to homeless
veterans. HUD's Section 8 Voucher Program will dedicate 750 vouchers for homeless
chronically mentally ill veterans and VA will provide outreach, clinical care and ongoing
case management services to the homeless veterans housed through this program.
Vouchers will be made available in the early part of Fiscal Year 1992.
Joint SSA/VA Pilot Project for Homeless Veterans: The Social Security Administration
(SSA) and VA are working on a joint project to provide Social Security benefits to
homeless veterans referred to them by VA. In addition, SSA personnel are joining VA
clinical outreach teams in shelters, soup kitchens and on the streets. An SSA record
search determined that 45% of homeless veterans (15,512 of 34,138) who have been
seen in VA's Homeless Chronically Mentally Ill and Domiciliary Care for Homeless
Veterans Programs have never applied for Social Security benefits. The first of these
SSA/VA Pilot Projects was started in August at the Brooklyn VA Medical Center. The
second will be started at the Dallas VA Medical Center in early Fiscal Year 1992.
Policy Governing "Life Sustaining" Medical Therapy: VA is considering policies to
govern the circumstances under which it would be permissible to withhold or withdraw
life sustaining medical therapy. Currently, VA elects to follow the "natural death" laws
of the various States within which VA medical centers are located. In many states,
however, the law is undeveloped or is unclear. In the case of states where the law is
relatively well developed, the laws of the various states may be inconsistent or in
irreconcilable conflict in this sensitive and difficult area. VA proposes to remedy this
situation by adopting a uniform national policy. A draft policy is expected to be
completed for review by October.
Persian Gulf Registry: A computerized registry to identify acute or chronic illnesses
which result from exposure to oil contaminants will be initiated in Fiscal Year 1992. A
medical examination will be offered to determine veterans' current health status. A
"triggering mechanism" to identify disability claims has already been established.
Regulatory action on the part of VA would be dependent upon scientific findings.
Rationalization of VA-DoD Benefits: The Deputy Secretaries of Veterans Affairs and
Defense are discussing rationalizing the various-and sometimes overlapping-benefits
available to service members and veterans. Candidate programs include records
management, electronic transfer of separation information, payment and disability issues,
and data exchange in a variety of areas. A Memorandum of Understanding is currently
pending DoD signature.
7
D. ADDITIONAL INITIATIVES AND POLICIES
Secretary's Policy Board Established: The Secretary identified an Assistant Secretary for
Policy and Planning as part of a recent realignment of the Department to provide
impetus for a forward-thinking process. This office is to be the focal point for policy
development and analysis and to facilitate change. Confirmation of this nomination by
the Senate is expected in early October. One key aspect of this realignment has been
the formation of the Secretary's Policy Board. Its members are the
Presidentially-appointed officials of the Department who meet on a biweekly basis to
consider the major policy initiatives of VA and the Administration. The new structure
and decision-making processes should be beneficial in managing change and in
developing policy. The Policy Board began meeting on a regular basis in late July.
Total Quality Management: The Veterans Benefits Administration continues to make
excellent progress in implementing TQM. This year, each of their four Area Offices
assumed responsibility for the program in regional offices and each Area Office has
trained TQM instructors. Quality Improvement Teams are functioning in several
regional offices and orientation has been provided to the Veterans Benefits
Administration's Central Office management team. The goal is to fully implement TQM
in all regional offices by Fiscal Year 1997. TQM will be implemented in all 172
medical centers by the end of Fiscal Year 1995.
Benefits Delivery System Improvements: Veterans benefits delivery will be enhanced by
centralized claims processing, modernization of operations, and colocation of regional
offices on medical center grounds. Two pilot studies have begun in centralized
education and loan guaranty processing to test effectiveness, quality, and timeliness of
processing. A project for modernization of automated systems continues and will further
enhance this test.
Medical Care Cost Recovery: Reimbursement from insurers and co-payments from
veterans for health care provided to veterans for nonservice-connected conditions
continues to be very successful. As of the end of August, VA has collected 95 percent
of its Fiscal Year goal of $250 million. Collections in Fiscal Year 1991 will be almost
double those in 1990.
Resource Planning and Management: Strategic and operational planning, budgeting, and
operational management of the VA health care system will be achieved through a new
Resource Planning and Management process. This process will be pilot tested during
Fiscal Year 1992 and used for resource management in Fiscal Year 1993. The pilot test
will commence in September with meetings of medical center directors and chiefs of
staff.
Radiological Preparedness: A strategic plan (required by Executive Order 12657) for
VA's capability to respond to the needs of local, state, and Federal nuclear power plant
planners will be developed. The plan will include specific training for VA medical staff
who may be called upon to respond to catastrophic events. The plan will also be
integrated into the the National Defense Medical System.
Rural Health: Discussions are underway with the Department of Health and Human
Services on a demonstration project in which VA would provide limited care to
non-veterans in three or four rural areas. A legislative proposal (H.R. 2824) by
Congressman Rowland (Georgia) is on a parallel track that would require a ten site
demonstration. Veterans organizations have already expressed concern, particularly
about the potentially negative implication for veterans' access to health care. Hearings
are scheduled for October 2, 1991.
8
HIV Infected Health Care Workers: The Centers for Disease Control issued guidelines
and recommendations on July 12, 1991, entitled "Recommendations for Preventing
Transmission of Human Immunodeficiency Virus and Hepatitis B Virus to Patients
During Exposure-Prone Invasive Procedures." Three regional teleconference calls to all
VA medical centers were held to disseminate information on the guidelines on
September 3, 4 and 5. Two other conference calls to discuss interpretation and
implementation of guidelines were held with infectious disease experts in the field. A
list of exposure-prone procedures will be defined in cooperation with HHS and
professional groups. The policy incorporating the list will be implemented as soon as
possible.
Interdepartmental Health Policy Committee: This group has been convened by OMB to
address mutual health policy issues between VA, DoD, and HHS. A working group has
also been formed and has as its agenda such items as pahrmaceutical prices,
reimbursement rates and sharing of scarce resources. The first meeting of the working
group took place on September 11, 1991.
E. PREVIOUSLY REPORTED SIGNIFICANT PROBLEM AREAS
Pharmaceutical Prices: The 1990 Omnibus Budget Reconciliation Act contained
provisions intended to reduce the pharmaceutical expenditures of the Medicaid program
by requiring manufacturers to provide monetary rebates to the states. The amount of
the rebate is equal to the difference between the price paid by the Medicaid program
and the "best price" in the market place. Pharmaceutical manufacturers are raising VA's
prices to lessen the rebates paid to states. Thus far, VA has measured an impact of
over $60 million annually and this will inflate at a cumulative rate of eight percent
annually. Currently, two bills have been proposed to remedy the cost shifting dilemma.
The Senate appropriations amendment (to Section 520 of H.R. 2519) would exempt
VA's prices from rebate calculations and would direct the Secretary to attempt to
renegotiate Federal Supply Schedule contracts. The House Veterans' Affairs Committee
bill (H.R. 2890) exempts all Federal prices from calculations and restores prices on
depot and Federal Supply Schedule to pre-Omnibus Budget Reconciliation Act levels
with an adjustment for inflation. Hearings by HVAC were held on September 11, 1991.
In another attempt to solve this problem, VA and DoD have requested a meeting with
HHS to develop a memorandum of understanding on definitions for single award and
depot contracts since pharmaceuticals in these categories are exempt from rebate
calculations. The House Veterans Affairs Committee held a hearing on this issue on
September 11.
Operation of VA's Supply Fund: OMB Circular A-34 prevents VA from computing its
supply fund inventory as a budgetary resource. Supply fund inventories turn over 5.5
times per year making the fund a near cash asset for which an exemption is appropriate.
The memorandum of understanding on definitions for single award and depot contracts
mentioned above would enable VA to add proprietary items to depot stock and to make
single award contracts which are now exempt from rebate calculations.
Ethics Reform Act of 1989: This Act placed severe restrictions on the kinds of income
that career Federal employees can receive. It particularly impacts part-time professional
medical personnel. Legislation (S. 242) is ready to go to the Senate floor that would
correct this problem for all career employees. Similar legislation (H.R. 325) is
scheduled for mark-up by the full House Judiciary Committee in the near future.
9
Lawsuit Delays Expansion of Calverton National Cemetery, Long Island, New York:
The trial involving litigation between the Small Business Administration and a
contractor who was denied award of a major construction contract to provide 90,000
additional gravesites at Calverton National Cemetery has concluded. Post-hearing
briefings are being prepared by both the contractor's attorney and the Department of
Justice. Continuing litigation will prevent the contract award for an extended time and
VA has requested the U.S. Attorney to petition the judge for permission to initiate a
separate minor construction project to develop approximately 10,000 gravesites to ensure
continued operation of the cemetery.
Maintenance of the National Cemetery System: Conditions at Riverside National
Cemetery, California, early this year focused media and service organization attention on
the National Cemetery System as a whole. Both the House and Senate Appropriations
Committees have recommended an additional $10 million for the National Cemetery
System for Fiscal Year 1992. These funds will be used to continue the restoration
process at Riverside National Cemetery, as well as to improve, upgrade, and enhance
current operations at all national cemeteries.
Fiscal Year 1992 Budget Impact: The austere budget for the Veterans Benefits
Administration will be strained by the increased workload as a result of Operation
Desert Storm. Both Appropriations Committees have recognized the problem and
provided an additional $14.1 million, provided OMB agrees to declare these costs as an
emergency and fund them outside the domestic discretionary allocation available to the
Committees. Failing this agreement, the additional workload will have to be absorbed
and substantial delays in claims processing can be anticipated.
F. ADDITIONAL PROBLEM AREA
Surgical Program Realignment: The VA Inspector General found that actions to realign
33 surgical services would potentially improve quality of services and avoid the need for
additional construction and replacement equipment. The Chief Medical Director is
reviewing these recommendations for inclusion in the VA National Health Plan.
G. LEGISLATIVE ACTIVITIES
Omnibus VA Health Benefits: Both the House and Senate are considering Omnibus
type legislation. The House has passed H.R. 2280 and the Senate Veterans Affairs
Committee has reported S. 869. These bills contain numerous provisions on the
operations of VA programs, to extend expiring authorities and to create new program
initiatives. VA has expressed opposition to several provisions of these bills that direct
unnecessary new program activities without a funding source or that otherwise establish
unnecessary requirements.
Marriage and Family Counseling: The Senate Veterans Affairs Committee has
developed legislation to authorize the VA to provide marriage and family counseling to
families of returning Persian Gulf War veterans without regard to the veteran's need for
VA counseling or services. A mark-up of S. 1553 was held on September 12, 1991. VA
and DoD oppose the bill as being an unnecessary departure from the VA's primary
mission of providing needed services to veterans.
10
Homeless: H.R. 232 became Public Law 102-54 on June 13, 1991. This homeless
program was initially authorized by the Veterans' Home Loan Program Improvements
and Property Rehabilitation Act of 1987 (Public Law 100-198). Authority for the
program has been extended until September 30, 1993. The homeless program authorizes
the Secretary to sell acquired properties to any state or political subdivision, or to
nonprofit organizations, including veterans' organizations, working on behalf of homeless
persons. Section 7 of PL 102-54 authorizes the Secretary to use suitable VA-acquired
properties for a demonstration program of compensated work therapy and therapeutic
transitional housing for certain eligible veterans.
Dependency Indemnity Compensation (DIC) Reform: The DIC program consists of
monthly payments to surviving spouses or children of veterans whose deaths are service
related. VA's reform proposal, if fully implemented would replace the current
graduated-rate schedule based on service rank with a single payment level.
Congressional action on DIC reform is unlikely this session. VA testimony was provided
to the House in July and the Senate is studying an alternative proposal.
Persian Gulf Veterans Education Benefits: S. 868 and H.R 1108 would amend title 10
and title 38, United States Code and improve educational assistance benefits for
members of the Selected Reserve of the Armed Forces who served on active duty during
the Persian Gulf War and for some active duty members as well. Briefly, they would
either restore or extend benefits to individuals who served during this conflict.
Guarantee Securities Backed by Vendee Loans (S.1517 and H.R.939): This legislation
was proposed by the Secretary because it would significantly increase loan sale proceeds
without a material increase in guaranty risk over that incurred in connection with VA's
existing recourse sale program. Over a four year period (FY 92 - FY 95), increased
revenues are estimated to be $20 million, with $5.3 million of that total being realized
in FY 92.
Foreclosure Alternatives Notification: This law was enacted in July and makes
permanent the requirement that VA notify veterans in default on their VA home loans
and of foreclosure alternatives available to them. It eliminates the cash sale percentage
requirements on VA acquired property sales and requires VA to sell all vendee loans
with recourse, unless they are sold at par. The law extends the no-bid formula through
December 31, 1991, and the lender appraisal processing program (LAPP) through
December 31, 1992. There is now a one year time limit to request waiver of home loan
debts and VA must advise the veteran on how to apply for a waiver. VA rate reduction
loans are now authorized for up to a maximum guaranty of $46,000, the same as for
loans to purchase or construct a home.
Reserve Eligibility: H.R. 939 would extend home loan guaranty eligibility to persons
who completed 6 years service in the Selected Reserve of the Armed Forces (which
includes the National Guard) and are not otherwise eligible for VA housing loan
benefits. Floor action is expected shortly. Reserve veterans would pay a slightly higher
user fee than other veterans. This would be the first time eligibility for VA housing
benefits would be based on reserve service rather than extended active duty. (Under
Public Law 102-25, reservists who served on active duty for 90 days or more during the
Persian Gulf War qualify for VA housing loan benefits.)
11
H. REGULATIONS
Budget Reconciliation Act Provisions: All regulations supporting the Omnibus Budget
Reconciliation Act have been published in the Federal Register except the following:
a) Denial of service-connection for secondary effects of willful misconduct - the
proposed rule was returned by OMB on August 6, 1991, due to objections from the
Office of National Drug Control Policy regarding existing regulations not affected by
the Budget Reconciliation Act.
b) Limitation of benefits to incompetent veterans whose estates exceed $25,000 -- the
proposed regulation was published June 4, 1991. The final regulation is in
concurrence.
Rating Schedule Review: Based on a General Accounting Office recommendation, VA
has initiated a systematic review of the Schedule for Rating Disabilities (38 CFR Part 4)
to ensure that the schedule uses current medical terminology, contains unambiguous
rating criteria, and reflects recent medical advances. Each of the body systems
addressed by the rating schedule will be reviewed separately and include a contract
study from an outside consultant. Reviews of the genitourinary, gynecological,
cardiovascular and endocrine systems have been completed and proposed changes
submitted for the concurrences required before publication in the Federal Register.
Contract studies have been received for the muscular, respiratory and orthopedic
systems. Contracts have recently been awarded for studies of the remaining body
systems. The last study is due in January 1992. After proposed changes are published
in the Federal Register, a minimum 30-day public comment period must be provided.
Comments received will be reviewed and final changes formulated as quickly as possible
following the close of the comment period. However, the intervals before final
publication will vary based on the number and complexity of the comments received.
Reaction from the veterans organizations can be expected.
Veterans Benefits Programs Improvement Act of 1991 (PL 102-86): Final regulations
are being drafted in order to implement the provisions of PL 102-86, which include
amending the latency period for leukemia resulting from radiation exposure and
including reservists who engaged in radiation risk activities while on active duty for
training or inactive duty training among those eligible for benefits under PL 100-321.
Health Effects of Exposure to Agent Orange: The Department currently has under
consideration a number of regulations relating to health effects of exposure to Agent
Orange. The first recognizes a significant statistical association between exposure and
soft tissue sarcoma (a form of cancer). The second recognizes such an association for
chloracne (a serious skin condition) developing within nine months of the veteran's last
exposure to Agent Orange. It also states that a significant statistical association has not
been demonstrated for porphyria cutanea tarda (a metabolic disease).
Pursuant to PL 98-542, the Veterans Advisory Committee on Environmental Hazards
reviewed the proposed regulations and comments received during the public comment
period at its meeting on May 23-24, 1991. The Department took into account the
Committee's recommendations before preparing the final regulations (currently in the
concurrence process). Publication is expected this fall.
12
The Advisory Committee also considered whether the current scientific literature
demonstrates a significant statistical association between Agent Orange exposure and
the subsequent development of diabetes, lung cancer, or peripheral neuropathy.
Proposed rules establishing service connection for lung cancer are-in concurrence. The
Secretary has deferred a determination regarding diabetes pending further study. As a
result of PL 102-4, future advice regarding the Agent Orange issue will be furnished by
the National Academy of Sciences rather than by the Advisory Committee.
Medical Care Rate Revision: VA has prepared a proposed regulation to establish
separate ambulatory surgery rates for outpatient care utilizing the established Health
Care Financing Administration rates. Work is proceeding with revising the total rate
structure for all other medical care cost recovery rates. The proposed rate revision will
attempt to use actual aggregate costs instead of the per diem-based rate structure
currently in use for third-party reimbursements. We anticipate some reaction from the
insurance industry due to higher rates.
National Practitioner Data Bank: Regulations for VA participation in the Data Bank
have been finalized. It is anticipated that they will be published in the Federal Register
as a final rule early in FY 1992. They will be effective on the date of publication.
I. REPORTS/STUDIES
VA/DoD Study on Psychological Aftereffects of Desert Storm: The first of these
reports, entitled "War Zone Stress Among Returning Persian Gulf Troops: A
Preliminary Report," was delivered to Congress, pursuant to Public Law 102-25, on
July 8, 1991. The report was the topic of a hearing with the Senate Veterans' Affairs
Committee on July 16, 1991. A second report on mental health issues of Persian Gulf
returnees is required in April 1992.
PTSD Study: An evaluation of VA's programs providing services to veterans with
Post-Traumatic Stress Disorder (PTSD) was sent to Congress in August 1991.
Five Year Medical Facility Development Plan: The Five Year Medical Facility
Development Plan will be delivered to OMB by the end of September and subsequently
to Congress. The plan will likely result in two points of controversy on the Hill: it will
contain lower construction funding levels than in prior years and it will not contain
project funding dates.
National Survey of Veterans: VA is about to award a contract for a nationwide Survey
of Veterans which will begin this fall. This is the fourth in a series and is the basis for
a significant portion of policy direction and strategic planning in the Department. The
outcome will be to identify changing characteristics of veterans and use patterns over
time and the effects of a volunteer military and an aging overall veteran population.
Survey of Health Effects of Mustard Gas and Lewisite: VA has entered into an
agreement with the Institute of Medicine of the National Academy of Sciences for a
study by the Institute entitled, "Survey of Health Effects of Mustard Gas and Lewisite,"
to be completed October 31, 1992. The Institute will review and critically assess the
published literature on the long-term health effects of exposure to mustard gas and
Lewisite, a blistering agent used to make a highly toxic war gas. Interest in the
long-term health effects of exposure to mustard gas has been heightened in VA by the
threat of its use during the Persian Gulf hostilities and by the claims of several World
War II veterans who were exposed to it during tests of protective clothing.
13
J. MEETINGS OR EVENTS
Dr. Joseph Juran to Address VA Executives: Dr. Juran is known as "the father of Total
Quality Management" (TQM). He will be presenting an all day seminar to over 350 VA
executives and managers and to members of the President's Council on Management
Improvement on September 18 in Washington, D.C. The Deputy Secretary, Mr. Principi,
currently the Chairman of the Board of the Federal Quality Institute, is hosting this
event.
National POW/MIA Recognition Day: This year's remembrance is September 20.
Congress annually passes into Public Law a Joint Resolution through which the
President and Congress call upon all Americans to honor and memorialize the sacrifices
of all former American POWs, those still listed as Missing in Action, and their families,
as well as to promote maximum public awareness of the MIA issue.
98th AMSUS Convention: The Veterans Health Administration will host the national
convention for the Association of Military Surgeons of the United States (AMSUS) in
San Antonio November 17-22, 1991. The Association includes the medical departments
of the U.S. Army, Navy, and Air Force, the Public Health Service and the Department
of Veterans Affairs. This year's convention will emphasize continuing health education
and professional excellence.
Veterans Day 1991: Plans for the national Veterans Day holiday honoring veterans are
well underway. The Secretary of Veterans Affairs is the Chairman of the Veterans Day
Executive Committee. DoD is coordinating appropriate support and a Presidential
proclamation is under development.
VA Holiday Concert: The Department of Veterans Affairs Employees Association will
present a holiday concert in Washington, D.C. at the DAR Constitution Hall on
December 4, 1991. This event is in honor of our nation's veterans. Veterans from
World War I to Desert Storm will attend. The concert will also serve as a benefit to
raise funds for homeless veterans and will be carried on live television, via satellite, to
172 VA hospitals across the country. Additionally, Armed Forces Radio and Television
Service will telecast the program to military personnel stationed overseas during the
holiday season.
Fiftieth Anniversary of Pearl Harbor: The National Memorial Cemetery of the Pacific,
also known as the "Punchbowl," located in Honolulu, Hawaii, will be the site of
ceremonies marking the 50th Anniversary of the attack on Pearl Harbor. The Pearl
Harbor Survivors Association expects 4,000 to 5,000 people in attendance at the
cemetery early in the morning on December 7, 1991.
K. NEGOTIATIONS
Construction of San Joaquin Valley National Cemetery: Although construction of the
San Joaquin Valley National Cemetery in California will be substantially completed by
November 1991 for an opening in early 1992, the availability of water for operations and
irrigation is still not assured. VA is negotiating with Bureau of Reclamation
(Department of the Interior) and the California Department of Water Resources to
secure both a long-term supply of water and a long-term easement from the State to
construct a pumping station to distribute water. VA and Department of Interior have
reached agreement on language for a legislative exemption to obtain a long-term
contract and Congressional action is pending. Plans to obtain a short-term contract have
been developed to maintain water availability for cemetery purposes until these issues
are resolved.
14
Construction of VA Hospital in Hawaii: VA is negotiating with the Department of the
Army to obtain land at the Tripler Army Hospital in Honolulu to construct a VA
hospital.
Medical Care Cost Recovery-VA/DoD: VA and the Office of DoD Assistant Secretary
for Health Affairs and Medical Corps headquarters of the Army, Air Force and Navy
are continuing informal discussions to establish closer working relationships and training
opportunities in the implementation of the respective medical care cost recovery
programs.
Dioxin-related Scientific Literature Review: Public Law 102-4, the "Agent Orange Act
of 1991", mandates the Secretary of Veterans Affairs to enter into an agreement with
the National Academy of Sciences (NAS), or other "appropriate scientific organization,"
for the review and evaluation of available scientific evidence regarding associations
between diseases and exposure to dioxin and other chemical compounds in herbicides.
VA and NAS negotiations continue without resolution. NAS's continued insistence upon
indemnification for the effects of any legal actions resulting from their review and
recommendations has significantly delayed award of a contract for the mandated review.
Congress, in an effort to comply with the NAS's request, enacted Public Law 102-86 on
August 14, 1991. It provides the indemnification as requested by the NAS; however, the
NAS has not yet agreed. VA is advising the NAS that either a contract must be
concluded or VA must seek a contract with another appropriate scientific organization
using a competitive bid process.
Clinical Laboratory Improvement Act (CLIA): An administrative provision has been
established by HHS to require the VA to comply with clinical laboratory regulations
when they are issued by HHS. VA has accumulated recent evidence that shows that
VA labs score higher in accrediting inspections than comparable private sector
laboratories and has an overall extremely low error rate. DoD has asked VA for advice
on this issue and plans to set up comparable data showing DoD's laboratory
performance quality. DoD plans to continue negotiations on a memorandum of
understanding with HHS, and, if this fails, will be using the same legislative approach as
VA to seek the authority to set its own laboratory standards.
CHAMPUS: A VA/DoD task group is analyzing VA costs against CHAMPUS
allowable rates to provide a basis for negotiating local, regional, or national
reimbursement rates. Legislation would be needed to permit the treatment of
CHAMPUS beneficiaries in VA facilities under VA/DoD sharing agreements and to
allow CHAMPUS dollars to be allocated to individual military treatment facilities under
the coordinated care program.
Federal Coordinating Centers: Federal Coordinating Center (FCC) responsibility is
jointly shared by VA and DoD. FCCs are an integral part of the National Disaster
Medical System (NDMS). VA currently coordinates 35 of the 75 NDMS areas
throughout the United States. NDMS was designed to address major medical
requirements during a major catastrophic domestic disaster and the possibility of an
overseas conventional conflict. VA assumed responsibility for three additional FCC
areas in FY 1991 based on the Base Realignment and Closure Study. With continued
downsizing of the military, VA may have to assume responsibility in discussions with
DoD for the remaining FCCs in FY 1992 through FY 1995.
15
L. COURT DECISIONS/LITIGATION
Class Action Suit in VA Mass Review of Psychiatric Ratings in Puerto Rico-Fernando
Guisti-Bravo, et al. V. VA: A settlement agreement has been signed by all parties and
submitted to the court for approval.
Dioxin Disability Claims-Nehmer, et al. V. VA: Since the last report, the Secretary has
continued the process of amending regulations governing disability-compensation claims
based on dioxin exposure in accordance with the district court's mandate. On May 20,
1991, a Final Stipulation and Order was entered in the case requiring the Secretary to
make determinations regarding certain diseases allegedly related to dioxin exposure and
to hold open most claims based on dioxin exposure until additional rulemaking is
completed. The stipulation also provided for entry of a final judgment in the case thirty
days after the court is notified of the Secretary's determinations unless motions are
pending at that time. Pursuant to the stipulation, on June 27, 1991, the Secretary
announced his determinations, including his intention to propose regulations establishing
service connection for peripheral neuropathy appearing within ten years of dioxin
exposure, if certain confounding factors are not present. On July 31, 1991, plaintiffs
filed a motion for enforcement of the final stipulation and order and to stay entry of
final judgment until resolution of the matter. Based on one incident of denial of a
claim which was to have been held open under the stipulation, plaintiffs allege, among
other things, that the Department is not complying with the requirements of the
stipulation. A hearing on the motion is set for September 23, 1991.
Limitation on Compensation to Incompetent Veterans-DAV V. VA: The Government
has filed its answer, and a pre-trial conference was held on June 7, 1991. At that
conference, plaintiffs indicated their intention to move for a preliminary injunction. On
July 17, 1991, the Court signed a stipulation and order certifying the case as a class
action. The Government agreed to stipulate to the class-action certification without
prejudicing any challenge which the Government may later raise to the Court's
jurisdiction over the subject matter of the action. On July 24, 1991, plaintiffs, with the
agreement of the Government, filed a second amended complaint. The second amended
complaint, among other things, added new allegations that the provision of the Omnibus
Budget Reconciliation Act limiting compensation payments to certain incompetent
veterans without dependents violated the incompetent veteran's right to due process of
law. On August 14, 1991, the Government filed its answer to the second amended
complaint. Plaintiffs' filed a motion for a preliminary injunction on August 16. The
Government's opposition and motion to dismiss will be filed by September 20, and
plaintiffs' reply will be filed by September 30, 1991. A follow-up pre-trial conference is
set for October 18, 1991.
VA Employee Drug Testing Program-AFGE, Local 2110 V. Derwinski and Hansen V.
Derwinski: The district court has upheld a large portion of VA's employee drug testing
program. The decision permits random and reasonable suspicion testing of employees in
safety-sensitive positions such as those involving direct patient care, law enforcement and
certain health care support functions. These positions consist of physicians, nurses,
pharmacists, medical technologists/technicians, dialysis technicians, numerous other
health care positions involved in direct patient contact, diagnostic and therapeutic
functions or the preparation and dissemination of drugs and medicines (such as
psychologists, respiratory therapists, hematologists, microbiologists, radiology technicians,
and pathology technicians), as well as firefighters, police officers/detectives, guards,
protective officers, criminal investigators, motor vehicle operators, and auto mechanics.
The court also upheld VA's plan to conduct tests for known drug users, but required
modification of VA's standards for post-accident testing.
16
Limits on Contractor Claims--Reliance Insurance Company V. United States: The
United States Court of Appeals for the Federal Circuit has affirmed the decision of the
Court of Claims which had upheld the validity of VA's Changes Clause (commonly
referred to as the "G-10 Clause"). The G-10 clause limits the compensation a contractor
is able to recover for overhead expenses incurred on change orders to a percentage of
the value of contract changes plus an allowance for profit. These percentages are fixed
at 10 percent, 7 1/2 percent or 5 percent, dependent upon certain factors. The Federal
Circuit cited for authority its 1986 holding in Santa Fe Engineers, Inc. V. United States
which also upheld VA's Changes Clause and further expanded its holding in Reliance
clarifying that the G-10 clause properly operates to limit recovery of overhead
compensation regardless of the size and scope of contract changes. This decision will
provide a major defense to the costs involved in claims against VA.
M. DEPARTMENT NEWS
Telecommunication Device for the Deaf (TDD): On August 14, 1991, VA began a
special toll-free telephone service for individuals with hearing impairments. Callers with
a TDD may contact a Veterans Benefits Counselor and obtain information and guidance
for the full range of VA benefits and services. A counselor is available to answer the
TDD circuit from 8:00 a.m. to 4:00 p.m. CST, Monday through Friday. After normal
office hours, on weekends and holidays, an answering machine receives messages and the
calls are returned the following business day.
Radiation Helpline: In August, VA began a special toll-free telephone helpline for
veterans who may have been exposed to radiation during military service. The Helpline
also provides information and assistance to the family members or survivors of these
veterans. There are two circuits which are staffed by specially trained Veterans Benefits
Counselors from 8:00 a.m. to 4:30 p.m. EST, Monday through Friday. After normal
office hours, on weekends and holidays, an answering machine receives messages and the
calls are returned the following business day. This service was established in an effort
to be responsive to the sensitive issue of radiation exposure and claims from veterans
and their survivors.
Match of Beneficiary Rolls with Files of IRS (Internal Revenue Service) and SSA
(Social Security Administration): The Omnibus Budget Reconciliation Act of 1990,
provided authority for VA to match information regarding beneficiaries with IRS and
SSA files in order to identify those who may be under reporting their annual income in
connection with income-based programs. A recent check of VA and IRS records
enabled VA to identify $338 million in unearned income, apparently unreported by
116,000 beneficiaries. VA is attempting to verify the income of an initial group of
13,600 recipients before action is taken to adjust benefits and recoup overpayments.
Later this year VA will receive wage and pension income information from SSA and a
similar project will begin based on this information. This issue has the potential for
concern by service organization representatives or the media.
Ban on Tobacco Sales at VA Medical Centers: Over-the-counter sales of tobacco
products in Veterans Canteen Service canteens are to cease as of October 1, 1991.
Certain inpatients in long-term, chronic, and special programs, and domiciliary patients
who have been identified by medical staff, will be permitted to purchase tobacco
products but will have to adhere to the VA smoke-free policy and will be allowed to
smoke only in areas where the policy permits. Agreements have been developed
between Canteen Service and other offices to offset projected losses to the revolving
fund which will result from the ban on tobacco sales.
17
Martinez Closing: The VA has determined that the primary patient care building at
Martinez presents an unacceptable danger to patients, visitors, and staff. The Medical
Center is located between two significant fault lines, and there is a significant probability
of a moderate to major earthquake in the next 10 to 20 years. Several expert opinions
have agreed that the Medical Center would sustain major structural and non-structural
damage in a severe earthquake and that partial to complete collapse of the building
could be anticipated. Severe seismic danger prompted the decision to evacuate the main
patient care building at the VAMC Martinez. Evaluation of options to provide medical
care to veterans in the Martinez primary service area determined that veterans would be
best served by locating the medical center at the University of California, Davis. Three
VA Medical Centers in the San Francisco Bay area will continue to provide inpatient
care.
East Central Florida: There has been considerable political and media interest in the
selection of the site for a new VAMC in the East Central Florida area. Seven sites are
currently under consideration: two in Brevard County, three in Orange County, one in
Orange/Seminole Counties and one in Volusia County. Volusia County has been
particularly vocal in lobbying for the medical center to be sited there. At the request of
the Secretary of Veterans Affairs, a task force was convened to analyze siting options
and present a future course of action to meet the health care needs of veterans in East
Central Florida. The task force report will be completed in the next few weeks.
New GRECC Sites: Three new GRECCs (Geriatric Research, Education and Clinical
Centers) were designated by Secretary Derwinski on July 8, 1991, bringing the total
number of GRECCs to 15. The VA facilities that host the new GRECCs are Miami,
Madison, and Salt Lake City. In FY 1992 VA will fund one new GRECC. Competitive
proposals are due by October 11, 1991, and the final selection will be designated by
Secretary Derwinski by the end of the first quarter.
Released Hostage Treated at VA: Mr. Tracey, recently released by terrorists in
Lebanon, remains a patient at the Boston VA Medical Center where his treatment is
progressing satisfactorily. Members of his family have been contacted and all concerned
appreciate the care he is receiving.
Drug Free Workplace: On July 1, VA began a 90-day pilot program at 19 facilities to
conduct random drug tests of applicants for certain positions. No positive drug tests had
been reported as of the end of the second month of the pilot program.
N. OTHER
Proposed New National Cemeteries: Projects to establish seven national cemeteries are
in various stages of the Environmental Impact Statement process. Land acquisition and
actual construction will require future appropriations. The seven potential sites would
be located in Albany, Chicago, Cleveland, Dallas, Oklahoma City, Pittsburgh, and
Seattle. All have attracted significant attention from the news media.
18
AGENCY FOR INTERNATIONAL DEVELOPMENT
WASHINGTON, D.C. 20523
OFFICE OF
THE EXECUTIVE SECRETARY
September 13, 1991
MEMORANDUM FOR EDE HOLIDAY
ASSISTANT TO THE PRESIDENT
AND SECRETARY TO THE CABINET
FROM:
David G. Mein Me-
Executive Secretary
SUBJECT:
1991 Fall Issues Assessment
The following report summarizes key issues and activities at
the Agency for International Development for September 1 to
December 31, 1991.
HIGHEST PRIORITIES -- SUMMARY LISTINGS
Full implementation of Agency reorganization, including
Senate confirmation of Presidential appointees.
Support Administration efforts related to the Foreign
Assistance Act reauthorization, now in conference.
Further program development and implementation in Central
and Eastern Europe.
Fully respond to Administration decisions concerning
assistance to the Baltics and the Soviet Union.
Implementation of an expanded program in South Africa,
particularly related to the transition to a post-apartheid
society.
Continue support of the Enterprise for the Americas
Initiative.
- 2 -
SURVEY OF KEY ISSUES
ADMINISTRATOR'S ACTIVITIES
September 24-25: The Administrator hosts the session of
A.I.D.'s Advisory Committee on Private Voluntary Assistance,
which brings together key leaders from the PVO community.
October 8-19: The Administrator travels to Sri Lanka to
visit the A.I.D. Mission; to Thailand to attend the World
Bank/IMF Meetings; and to the Philippines with Ambassador
Elliot Richardson on a U.S. business mission.
October 30: The Administrator hosts the first meeting of
A.I.D.'s new Business Advisory Council in Washington, D.C.
November 11-24: The Administrator travels to Latin America
(Ecuador, Chile, Bolivia, and Brazil) for field visits to
the A.I.D. Missions in those countries. He will address the
International Conference of the Partners of the Americas on
November 22.
INITIATIVES AND POLICIES UNDER DEVELOPMENT
Agency Reorganization: A.I.D. will continue to
implement the reorganization announced in April,
including the establishment of the Policy, Operations,
and Finance & Administration Directorates.
Presidential Commission on Management of A.I.D. Programs:
The Commission will commence a review of A.I.D. program
management. The Commission will submit a report with
recommendations and findings to the President and the
Congress. Over the coming months, A.I.D. is geared to give
full support to the Commission in its deliberations.
A.I.D.'s Initiatives: A.I.D. continues with the
implementation of five Agency initiatives: Support for
Democracy, Business and Development Partnership, the
Family and Development Initiative, the Environment
Initiative, and the Management Initiative.
A.I.D. and Japan Aid Coordination: We will hold the
fourth round of informal discussions with the
Government of Japan on aid coordination. An issue for
discussion concerns the recent Japanese policy on
linking foreign assistance to recipient government's
military spending levels.
- 3 -
INITIATIVES AND POLICIES UNDER DEVELOPMENT (Continued)
Aid for the Baltics and the Soviet Union: A.I.D. is
continuing to prepare for Administration decisions
concerning assistance to the Baltics and the Soviet
Union.
Angola and Ethiopia: Working closely with State, we are
planning assistance programs to both Angola and Ethiopia.
We expect to begin these programs in FY 92.
Latin American Debt Relief: Consistent with the Enterprise
for the Americas Initiative (EAI), we are exercising Foreign
Assistance Act authority to provide debt relief to Honduras,
Nicaragua, and Guyana.
Enterprise for the Americas Initiative and Intellectual
Property Rights: In support of the EAI, we are working
closely with USTR and the Department of Commerce to develop
a program to assist Latin American countries with
intellectual property rights issues.
SIGNIFICANT PROBLEM AREAS
Legislation: Foreign Assistance Act reauthorization, now in
conference, includes some improvements in the law but also
includes a number of problematic items. Among these are
provisions overturning the Mexico City Policy and requiring
funds for the UNFPA, expansion of cargo preference, caps on
the amount of cash assistance, and new mandates for capital
projects.
Sudan and Somalia: Our ability to provide humanitarian
assistance to these two countries continues to be
exceedingly difficult due to an uncooperative Khartoum
government and ongoing Somali factional strife.
- 4 -
LEGISLATIVE ITEMS
Potential assistance to the Soviet Union and the
Baltics.
Future of program in Eastern Europe, including
Yugoslavia. Specific questions relate to program
structure and staffing.
Key programmatic interest areas include: efforts to
increase environmental staffing and programs; capital
projects development; and, level and scope of programs
in basic education, child survival, health, AIDS, and
microenterprise.
Management issues, including overseas staffing,
relationships to other agencies, as well as efforts to
control waste and fraud.
Humanitarian relief efforts in the Soviet Union, the
Philippines, the Horn of Africa (Ethiopia, Sudan, and
Somalia), and possibly to Iraq under a UN umbrella.
Restrictions on authorities relating to programs in
South Asia (India, Pakistan) and Indochina.
Possible future programs in Indochina, especially
Cambodia.
UNITED STATES.
PROTECTION AGENCY
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
OFFICE OF
THE ADMINISTRATOR
MEMORANDUM FOR EDE HOLIDAY
ASSISTANT TO THE PRESIDENT AND
SECRETARY OF THE CABINET
FROM:
GORDON BINDER
CHIEF OF STAFF
n
SUBJECT:
EPA 1991 FALL ISSUES ASSESSMENT
I. HIGHEST PRIORITIES
Clean Air Act implementation: several high profile rules, proposed or final -- acid rain,
permits, inspection/maintenance, and reformulated gasoline
Continue vigorous enforcement and Superfund cleanups; complete review by Superfund
Task Force of Alternative Remedial Contract Strategy; publicize program successes
Implement President's wetlands program; review comments on new delineation manual
Work with USTR on environmental review of NAFTA; complete Mexico Border
Environmental Plan for presentation to Presidents Bush and Salinas at meeting later this
year
Legislative Priorities: Cabinet status, implementing legislation for the Basel Convention
Complete 1993 Agency Budget emphasizing risk reduction, market incentive programs,
science, reducing risks to health and environment, geographic initiatives (Great Lakes,
Gulf of Mexico, Chesapeake Bay)
Advance the quality of science at the Agency including working with outside scientists to
improve risk assessment
Expand voluntary approaches to pollution prevention and recycling
Work closely with states and local governments (especially small communities) on waste
management, water quality issues
Finalize plans for new EPA building
Printed on Recycled Paper
-2-
II. SURVEY OF KEY ISSUES
ADMINISTRATOR'S ACTIVITIES
Germany
-On September 16, the Administrator will meet with German Minister of the Environment
Klaus Toepfer.
RCRA Reauthorization
-On September 17, the Administrator is scheduled to testify before the Senate
Environment and Public Works Subcommittee on Environmental Protection (Chairman Max
Baucus, D-MT) on reauthorization of the Resource Conservation and Recovery Act.
Grand Canyon
-On September 18-19, the Administrator will travel to Arizona with the President to
announce final regulations limiting emissions from the Navajo Generating Station to improve
visibility in the Grand Canyon, and participate in other clean air events in Arizona.
Paper Industry
-On September 20, the Administrator and several Assistant Administrators are scheduled
to meet with representatives of the American Paper Institute.
Free Trade
-On September 23, the Administrator will participate in a panel discussion on free trade
hosted by the Americas Society in New York City.
Beach Clean-Up
-On September 24, the Administrator will participate in a beach clean-up event with
Representative Jim Saxton (R-NJ).
Canada
-On September 24, the Administrator will meet with Canadian Environment Minister Jean
Charest.
State Meeting
-On September 26, the Administrator will participate in the State-EPA Committee meeting
with representatives from nearly all fifty states and the 10 EPA regions. The meeting will
focus on agency-wide issues such as Clean Air Act implementation, groundwater protection,
and environmental education.
-3-
Political Event
-On September 28, the Administrator will attend a political event for Wayne Gilchrest (R-
MD).
Acid Rain
-In late September, EPA expects to release the proposed rules for the acid rain emissions
trading program, as required by the new Clean Air Act.
Pollution Prevention
-On September 30, the Administrator will visit Dow Chemical headquarters in Midland,
Michigan for a meeting on pollution prevention with Dow management.
Great Lakes
-On October 1, the Administrator will speak on pollution prevention at the sixth biennial
meeting of the U.S.-Canada International Joint Commission in Traverse City, Michigan.
Superfund
-On October 3, the Administrator is scheduled to testify before the House Public Works
and Transportation Committee on the Superfund Program, efforts to accelerate site cleanups,
and the EPA Task Force Report on Superfund contracting programs, which is due to be
completed by September 30. The Administrator will likely make the report public the day
before his testimony.
National Park Service Anniversary
-On October 7-8, the Administrator will deliver an address at the 75th Anniversary
Symposium of the National Park Service in Vail, Colorado, and visit the EPA Region 8
(Denver) office.
Basel Convention
-On October 10, the Administrator is scheduled to testify before the House Energy and
Commerce Subcommittee on Transportation and Hazardous Materials (Chairman Al Swift,
D-WA) on the Administration's legislation to implement the Basel Convention on
Transboundary Shipments of Hazardous Waste.
Environmental Education
-On October 16, the Administrator is scheduled to participate in a press event launching
the National Environmental Education and Training Foundation, which was established by
the Environmental Education Act of 1990.
-4-
Business and the Environment
-On November 5, the Administrator will speak at the 75th Anniversary Program of The
Conference Board on business opportunities in environmental protection.
Political Events
-On November 13, the Administrator will be in New York City for a GOP Fundraiser.
Events in Florida and Pennsylvania are still being scheduled.
Mexico/Southern California
-From November 18-22, the Administrator will travel to Tijuana, Mexico with Senator
John Seymour (R-CA) and California Governor Pete Wilson (tentative) for meetings with
SEDUE (Secretaria de Desarrollo Urbano y Ecologia) and a tour of the Tijuana Sewage
Treatment Disposal Facility; to San Diego to meet with press and visit Scripps Institute; and
to Los Angeles to meet with press, attend a fundraiser for Senator Seymour and address the
Town Hall Forum on clean air, one year after the new law was signed.
OECD Environment Ministerial
-On December 2-3, the Administrator is scheduled to participate in the OECD Ministerial
Meeting on Environment and Development in Paris, France.
Turkey
-At the National Security Council's request, the Administrator may travel to Turkey
before year-end to help advance the President's commitment to President Ozal for a new
long-term strategic relationship.
LEGISLATIVE ACTIVITIES
Cabinet Legislation
-The Agency will continue to track Cabinet legislation, promoting the President's call for
simple elevation of EPA to Departmental status. The bill is ready for a Senate vote,
provided all "holds" can be lifted.
Basel Convention
-EPA has the interagency lead in shepherding through Congress the Administration's
legislative proposal to implement the Basel Convention on Transboundary Shipments of
Hazardous Waste. While ratification of the Convention is likely, the timing of implementing
legislation is uncertain. There are currently several pieces of competing legislation in the
House and Senate (in particular, the Synar/Wolpe bill), which propose stricter standards for
the management of hazardous waste in countries to which waste is exported.
-5-
Enterprise for the Americas
-EPA is actively participating in the broad Administration effort to develop support in
Congress for the Enterprise for the Americas Program as included in the House Foreign Aid
Bill before the competing House and Senate bills go to conference.
Clean Water Act
-EPA will continue to lay groundwork within the Administration for reauthorization of the
Clean Water Act. Clean Water Act reauthorization is an important opportunity to advance a
program which sets priorities based on risk and risk reduction strategies which are more
market-oriented. Key issues which have surfaced during the reauthorization process to date
include efforts to control nonpoint sources of pollution, wetlands protection, combined sewer
overflows, stormwater runoff, wastewater treatment financing, application of market-based
approaches, water conservation and financial burdens on small communities and businesses.
Resource Conservation and Recovery Act (RCRA)
-The Agency will continue to work with other agencies to develop Administration
positions on hazardous waste and solid waste management issues in the Congressional debate
over RCRA reauthorization. Developing innovative, market-oriented approaches and
preserving maximum state authority in these areas are key issues. Hearings and markups are
continuing, with the Administrator scheduled to testify on September 17.
REGULATORY ACTIVITIES
Clean Air Act Implementation
Navajo Generating Station Final Rule:
-On September 18, the Administrator will travel to Arizona with President Bush to
announce a final rule requiring a reduction in air emissions from the Navajo Generating
Station, a powerplant 15 miles from the northern edge of Grand Canyon National Park. The
rule requires a 90% reduction in emissions from the plant to improve visibility in the Grand
Canyon. The rule provides the utility owners with flexibility and planning time to meet the
new requirements while achieving environmental improvement. The rule tracks the recent
agreement between the utility owners and the environmental community.
Acid Rain Proposed Rulemaking:
-In late September, the EPA expects to announce the proposed acid rain emissions trading
program. The program will include the acid rain allowance trading system, which represents
the most fully developed use of market principles to achieve environmental results yet; the
acid rain permit program, a flexible system providing multiple compliance options from
which utilities can choose; and the continuous emission monitoring system, which will help
make this market-based system credible. When finalized in May of 1992, these regulations
will set a course for reducing sulfur dioxide emissions in the U.S. by 10 million tons
annually by the year 2005.
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Vehicle Fleet Standards:
-In late September, EPA expects to propose regulations requiring that a percentage of the
vehicle fleets operating in the 21 cities with the worst air pollution meet more stringent air
emission standards and use cleaner burning fuels.
Nonattainment Area Designation:
-In late September/early October, EPA expects to issue a number of decisions finalizing
the boundaries of metropolitan nonattainment areas that are failing to meet certain air quality
standards for air pollutants such as ozone and carbon monoxide. The Agency is processing
changes in the designations resulting from a review of the technical criteria for selected rural
areas where the problem is caused by the spillover of air pollution from neighboring,
urbanized counties.
Reformulated Gasoline/Oxygenated Fuels:
-On August 16, EPA announced an agreement reached in negotiations among the Agency,
industry, states and environmental groups setting certain standards for cleaner fuels in places
with excessive ozone and carbon monoxide pollution levels. Under the new Clean Air Act,
41 cities with carbon monoxide problems will use oxygenated gasoline during winter months
starting in 1992 and 9 areas with severe ozone levels will use reformulated gasoline starting
in 1995. It is anticipated that this rule will be forwarded to OMB in late September and
finalized by the November 15 deadline.
State Operating Permit Regulations:
-The new Clean Air Act requires EPA to finalize State operating permit regulations, with
EPA oversight of State programs and enforcement of industry air pollution controls, by
November 15. The proposed regulation was the subject of a heated Congressional hearing
and produced over 400 comments with some asserting that the current proposal is unlawful.
Inspection/Maintenance Guidance:
-EPA is required to issue guidance on the characteristics of "enhanced" automobile
inspection and maintenance (I/M) programs required by the new Clean Air Act for states
with ozone nonattainment problems. The Act stipulates that EPA must require states to
employ a "centralized" I/M program (a few locations with expensive high tech systems)
unless the state can demonstrate that a "decentralized" program (inspection at local gas
stations with less sophisticated, less expensive technology) would yield equivalent results.
Several major states (Michigan, New York and California), local service stations, and
emissions control equipment manufacturers currently oppose a centralized system based on
concerns that such a system would be too expensive and inconvenient to consumers. Other
states and interests favor it. Studies show that a centralized system would achieve greater
reductions in emissions, thus reducing the increment of emission reductions that must be
achieved by other sectors, including small businesses. EPA has been receiving comments on
the I/M options and is scheduled to publish guidance by November 15.
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WEPCO Rulemaking:
-As a result of the acid rain provisions of the new Clean Air Act, many utilities will be
undertaking major pollution control projects at their plants in the next few years. Utilities
have been concerned that pollution control projects could subject their units to time-
consuming preconstruction permit requirements. In response to this concern, EPA expects to
finalize a proposal before year-end to exclude pollution control projects at electric utility
power plants from "new source review" unless EPA determines that the projects would not
be environmentally beneficial. The EPA plans to reopen the public comment period this fall
to invite comment on the transcript of the July 22nd Congressional hearings on this proposal.
Chlorofluorocarbons:
-In late September, EPA plans to propose regulations to phase out the production of CFCs
by the year 2000 in compliance with the 1990 London Amendments to the Montreal Protocol
and the new Clean Air Act.
Radon
-In late September, EPA will release draft model standards and technical guidance for
control of radon in new buildings.
Toluene
-By late September, EPA, under a court-ordered deadline, will propose to list as
"hazardous" the wastes generated during the manufacture of chlorinated toluenes, which are
used in the manufacture of pesticides, herbicides, dyes, and solvents.
State Water Quality Standards for Toxic Pollutants
-In early October, EPA expects to propose, as required by the Clean Water Act, federal
water quality criteria for toxic pollutants applicable to state water quality standards. The rule
would establish numeric, chemical-specific water quality standards for priority toxic
pollutants applicable to those States that have not yet adopted their own standards for toxic
pollutants. The rule would also establish a basis to assess and control the most prevalent
toxic pollutants impairing surface waters.
Municipal Discharge into Marine Waters
-In early October, EPA expects to publish proposed revisions to regulations governing
waivers for secondary treatment requirements for municipal discharge into marine waters.
Coastal Waterways
-In early October, EPA expects to publish, for public comment, proposed guidance
providing direction for states on the development and approval of State nonpoint source
pollution programs required to protect coastal waterways.
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Paper Mill Landfills
-By late October, pursuant to a consent decree, EPA will determine-i regulations under
the Resource Conservation and Recovery Act are necessary to address dioxin and furan
emissions from paper mill sludge landfills and surface impoundments.
Containerized Liquids
-By late October, EPA expects to issue a supplement to a proposed rule under the
Resource Conservation and Recovery Act establishing requirements for disposal of
"containerized" liquids in hazardous waste landfills.
Worker Protection from Pesticides
-In late October, EPA expects to publish revised regulations strengthening protection for
farmworkers and others who work with and around pesticides.
Oil Pollution Prevention
-By the end of October, EPA expects to revise existing regulations on oil pollution
prevention to make clear that spill prevention plans are mandatory at oil storage facilities.
The Water Quality Standards Indian Regulation
-In October, EPA expects to promulgate final amendments to the Water Quality Standards
Indian Regulation which would stipulate the procedures by which an Indian Tribe may
qualify for treatment as a state for purposes of the Clean Water Act, and the mechanism for
resolving disputes between Indian Tribes and States adopting differing water quality standards
for common bodies of water.
Hazardous Waste Pollution Prevention and Recycling
-In October, EPA plans to promote pollution prevention and recycling by proposing
modifications to hazardous waste recycling regulations under the Resource Conservation and
Recovery Act (RCRA). Also in early October, EPA will solicit public comment on a variety
of RCRA issues relating to the regulatory definition of "solid waste," which governs which
wastes are deemed hazardous and how that definition will limit or encourage environmentally
sound recycling.
Asbestos
-On approximately November 8, forty-five days after the release of a Health Effects
Institute Report on the subject, EPA must respond, under court order, to a union petition by
deciding whether to propose identification and management of asbestos in public and
commercial buildings. EPA is working closely with OSHA to clarify that agency's role and
plans with respect to its final rule on asbestos.
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Biotechnology
-In November, EPA expects to propose a rule under the Federal Insecticides, Fungicides
and Rodenticides Act (FIFRA) governing small-scale field testing of genetically engineered
biological pesticides.
Perchloroethylene (PERC)
-By November 15, under a court-ordered deadline, EPA expects to take some action on
perchloroethylene ("PERC") emissions from dry cleaners. EPA would either promulgate or
withdraw the Agency's 1981 proposal for new source performance standards under the old
Clean Air Act or propose new standards for new and existing sources under the new Clean
Air Act. The extent of our action could possibly be affected by the carcinogenicity
determination scheduled to be made in early October.
Decision on Widely Used Pesticide
-In December, EPA expects to make a final decision on whether and how many uses to
cancel of some uses of a class of widely used fungicides, ethylenebisclithiocarbamates
(EBDCs) because of health risks. The proposal to cancel uses of EBDCs was made
September, 1990. Since then, a market basket study has been completed which found
significantly lower levels of EBDC residues on food products than had been assumed in the
proposal. EBDCs are used on 55 types of fruits and vegetables.
Indemnification of Superfund Contractors
-By year-end, EPA expects to issue final guidelines for indemnifying Superfund cleanup
contractors.
Municipal Liability under Superfund
-By year-end, EPA expects to propose national guidelines that will state how the Agency
will calculate municipalities' share of the responsibility for conducting or paying for the
cleanup of Superfund National Priorities List sites containing municipal solid waste or
sewage sludge. Cost allocation issues will be discussed at a conference October 10-11,
which will include representatives of EPA, the Department of Justice, Congress,
municipalities, and other parties potentially responsible for these Superfund sites. Also by
year's end, the Agency expects to develop a model settlement document for municipalities
that have generated or transported municipal solid waste found at a Superfund site.
State Hazardous Waste Disposal - North Carolina
-EPA is in the process of reviewing a revised capacity assurance plan submitted by North
Carolina describing how the state will dispose of hazardous waste generated in the state. If
the EPA finds the plan inadequate, it could withhold federal Superfund cleanup funds from
projects in North Carolina.
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REPORTS AND STUDIES
Superfund
-On September 30, an EPA Task Force is scheduled to complete its report on Superfund
contracting programs.
Dioxin
-EPA is continuing its scientific reassessment of the risks from dioxin, which should be
completed by Spring 1992.
State Revolving Fund
-In late September, EPA expects to release the final State Revolving Fund Report to
Congress which addresses the status and operation of 46 State "Revolving Fund" Programs
established under the Clean Water Act to support construction of wastewater treatment
facilities.
Enforcement
-In early October, EPA expects to complete the Enforcement in the 1990's Project, an
internal review which contains recommendations on ways to improve environmental
enforcement in the United States. The report addresses environmental measures of success,
regulatory development procedures, the State/Federal relationship, innovative enforcement
techniques, enforcement incentives, and local government participation.
Wastewater Treatment Needs Survey
-In October, EPA expects to submit to Congress the final 1990 "Needs Survey," which
estimates the amount of money required to address the wastewater treatment needs of the
states and Indian tribes. The Survey identifies approximately $80.4 billion in state needs
(e.g., treatment, replacement, and rehabilitation) over the next 20 years. The states have
estimated that an additional $30.2 billion will be required to meet their needs. The Survey's
estimate for the capital investment required to address current Indian needs is $633 million;
the Indians estimate that an additional $89 million will be required. The Survey is currently
under review at OMB.
National Pesticide Survey - Phase 2
-In October, EPA expects to release Phase 2 of the National Pesticide Survey, which
discusses possible relationships among pesticide and nitrate detections in drinking water
wells, pesticide use, ground-water vulnerability, and other factors.
Enforcement of Water Pollution Laws
-In mid-October, EPA expects to submit a report to Congress on water pollution
enforcement mechanisms. This report, required under the Clean Water Act, will propose
statutory changes to improve enforcement of the nation's water pollution laws.
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Recycling of Used Tires
-In mid-October, EPA expects to release the results of a study on markets for used tires
as part of the Agency's effort to identify potential markets for recyclable materials.
Environmental Equity
-In late October, EPA expects to complete an internal review assessing the impact of
Agency actions on minority and disadvantaged populations.
Mideast Environmental Impact
-After his June trip to the Mideast, President Bush asked the Administrator to coordinate
the interagency effort to respond to the environmental impact of the Persian Gulf War. EPA
has drafted a required report from the President to Congress, describing the U.S. response to
the environmental damage in the Gulf region. EPA is currently receiving comments from
other agencies on the draft report and expects the report to be submitted in October.
Pollution Prevention
-During Consumers' Week (week of October 20), EPA expects to finalize the Pollution
Prevention Consumer Strategy required by Congress. The report outlines the Agency's
strategy for providing information to consumers to promote pollution prevention. Elements
of the strategy include environmental education, environmental labeling, and consumer
research.
By year-end, EPA expects to release the Federal Sector Pollution Prevention Strategy
which will provide direction for federal government facilities to reduce toxic emissions
voluntarily. It also provides for a review of federal procurement guidelines during 1992-
1993 to promote recycling and pollution prevention.
Underground Storage Tanks
-In November, EPA expects to transmit a report to Congress which evaluates financial
responsibility requirements for owners of underground storage tanks.
Annual Update of Air Quality Data
-In mid-November, EPA expects to publish its annual update of national air quality data.
This will include final 1990 data for ozone, carbon monoxide, lead, sulfur dioxide, nitrogen
oxides and particulate matter.
Recycled Paper
-In late November, EPA expects to release the results of a study on markets for recycled
paper.
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Nonpoint Source Water Pollution Control Programs
-In late November, as required by the Clean Water Act, EPA expects to transmit a report
to Congress on EPA's nonpoint source water pollution control program. The report
describes progress the states have made in reducing nonpoint source pollution and describes
EPA's plans for developing recommendations to Congress on future programs for nonpoint
source pollution control. OMB has reviewed the report and EPA is now working with OMB
to finalize changes.
AGENCY NEWS
Wetlands
-EPA will be working with other agencies to pursue the President's August 9 program for
Protecting America's Wetlands. The technical review panel on classification should get
underway. EPA regional offices are field testing and with other agencies awaiting comments
on the revised wetlands delineation manual. In mid to late September, portions of the
revised delineation manual will be proposed through formal rulemaking. When the comment
periods end, EPA and other agencies will be reviewing and analyzing the information. The
Agency also will continue to work with selected states to develop comprehensive state
wetlands programs.
Enforcement
-The Agency will continue vigorous enforcement efforts and steady progress on Superfund
cleanups, including the implementation of innovative site cleanup technologies and
responsible party contributions. Fiscal year 1991 numbers should be available by mid-
November.
Pollution Prevention
-EPA will continue to work with private firms to expand voluntary, nontraditional
approaches to pollution prevention and recycling -- such as the Agency's Green Lights
program (which promotes the voluntary use of more efficient lighting by major corporations)
and the 33/50 Initiative. Both programs have so far been highly successful. Over 250
companies have made commitments to reduce toxic emissions voluntarily under the 33/50
Initiative, which will result in an over 200 million pound reduction in the 17 target
chemicals. EPA recently expanded the initiative to 5400 additional companies.
The Green Lights Program has enlisted over 104 corporate partners and four states to
promote energy-efficient lighting, resulting in reduced pollution from electricity generation
and lower electricity costs. Green Lights is in effect in approximately 1.4 billion square feet
of space, representing 2% of all the commercial real estate in the country.
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Risk Assessment
-EPA is continuing an aggressive effort to review the Agency's risk-assessment practices
to ensure consistent approaches and a sound scientific base for this work.
New EPA Building
-EPA will seek to close on plans to relocate the Agency's Headquarters to a new federal
building on Pennsylvania Avenue.
Environmental Labeling
-EPA continues to work with the FTC and the Office of Consumer Affairs on the
Interagency Task Force on Environmental Labeling. The goal of the Task Force is not to
regulate advertising but to insure that consumers receive technically accurate information for
their buying decisions. In November, EPA will hold public hearings on a notice asking for
comment on the definitions of "recycled" and "recyclable." EPA plans to ask the FTC and
the Office of Consumer Affairs to join EPA on the panel during the public hearings. EPA is
also developing a larger strategy for publicizing the Agency's position on other terms such as
"environmentally friendly," "compostable," and "degradable."
Radionuclides Cleanup at Federal Facilities
-EPA expects to enter into a Memorandum of Understanding with the Department of
Energy (DOE) to develop criteria and guidance for the cleanup of radionuclides at
contaminated federal facilities. EPA has already received preliminary approval from DOE
on a draft memorandum submitted in August.
Working with States on Water Quality Issues
-EPA is working with states and other federal agencies to improve the consistency of
environmental monitoring and reporting and to identify "indicators" for use in assessing
environmental quality.
Recycling Executive Order
-EPA continues to seek this proposed Order on federal agency recycling and procurement
of recycled materials.
Total Quality Management
-EPA has made an agency-wide commitment to Total Quality Management, and is
continuing efforts to train staff and apply TQM principles to Agency activities wherever
possible.
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Science Review
-The Administrator has launched a review of future directions for seience at EPA; the
effort, due to report this fall, is led by Ray Loehr, chairman of the Agency's Science
Advisory Board. It should recommend several ways to strengthen science at the Agency.
Environmental Education
-EPA expects to select a director of the Office of Environmental Education and finalize
the strategic plan for this new mission.
MEETINGS AND EVENTS
Climate Change
-Through September 20, EPA will be participating in the third session of the
Intergovernmental Negotiating Committee (INC) in Nairobi, on a framework convention on
climate change. The United States and other nations are attempting to reach agreement on
the appropriate treatment of carbon dioxide, chlorofluorocarbons, and other greenhouse
gases. The U.S. delegation is expected to discuss, among other issues, the recently
completed inventory of U.S. technical cooperation programs related to climate and the
possibility of other nations' conducting their own inventories.
Electromagnetic Fields
-From September 18-20, the Radiation Advisory Committee of the EPA Science Advisory
Board is scheduled to meet in Washington, D.C., to discuss the Agency's risk assessment of
the potential carcinogenicity of electromagnetic fields as well as other topics.
U.S.-Mexico Environmental Relations
-EPA will participate in public hearings and meetings on the draft U.S.-Mexico Integrated
Environmental Border Plan to be held from September 16-25 in 15 sister cities along the
U.S.-Mexico border. The draft Border Plan will be finalized and readied for presentation to
Presidents Bush and Salinas when they meet later this year. Concurrently, EPA continues to
work with the Trade Representative's Office on environmental issues related to the North
American Free Trade Agreement.
Forestry Conference
-From September 17-26, EPA staff will participate in the tenth World Forestry
Conference in Paris, France. Expected topics of discussion include a global forestry
agreement and the Tropical Forestry Action Program.
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Great Lakes/IJC
-From September 30-1, EPA will participate in the Sixth biennial U.S.-Canada
International Joint Commission meeting on Great Lakes Water Quality. Topics for
discussion at the meeting include integrated monitoring for the Great Lakes, prevention of
chemicals spills in the Great Lakes Basin, and improving public participation in Great Lakes
issues.
Antarctic Treaty Meeting
-From October 7-18, EPA staff will participate in the 16th Antarctic Treaty Consultative
Meeting in Bonn, Germany to discuss implementation of the Antarctic Protocol which covers
marine pollution, waste disposal, and mineral activities.
Water Resources Conference
-From November 5-7, EPA, the U.S. Geological Survey, the Bureau of Reclamation, and
the Army Corps of Engineers will co-sponsor a conference in Albuquerque, New Mexico on
water resource and climate issues. The conference is expected to draw over 500 participants
from the public and private sectors.
Environmental Education Conference
-From November 19-21, EPA will sponsor a conference "Building a Shared Vision for
Environmental Education" in Washington D.C., in cooperation with The Federal Task Force
on Environmental Education. The conference will launch the implementation of the National
Environmental Education Act of 1990.
OECD Ministerial Meeting
-On December 2-3, EPA will participate in the OECD Ministerial Meeting on
Environment and Development in Paris, France. The agenda for the meeting includes
discussion of ways to develop new partnerships among member countries.
TREATMENT MANAGEMENT
Federal Emergency Management Agency
AGENCY
Washington, D.C. 20472
SEP 18 1991
MEMORANDUM FOR EDE HOLIDAY
ASSISTANT TO THE PRESIDENT
AND SECRETARY OF THE CABINET
FROM:
Sharts
GRANT C. PETERSON
SUBJECT:
1991 Fall Issues Assessment
The following report summarizes key issues and activities at the Federal Emergency
Management Agency for September 15 to December 31, 1991.
I.
HIGHEST PRIORITIES -- SUMMARY LISTING
1.
Enact a Supplemental Appropriation Bill that funds the President's Disaster Relief
Fund at an operational level.
2.
Implement the next stages of the Chemical Stockpile Emergency Preparedness
Program.
3.
Develop legislative amendments to the Robert T. Stafford Disaster Relief Act.
4.
Evaluate the Pilgrim Nuclear Power Plant's full-scale December exercise.
5.
Complete the major earthquake related studies directed by Congress.
6.
Complete the National Earthquake Hazards Reduction Program (NEHRP) Five-
Year Plan.
7.
Implement the Hotel/Motel Fire Safety Act.
II.
SURVEY OF KEY ISSUES
AGENCY ACTIVITIES
FEMA executives to meet with organization of State officials. Director Wallace E.
Stickney, Associate Director Grant Peterson, and several of FEMA's Regional
Directors will travel to Lexington, Kentucky to address the Annual Meeting of the
National Emergency Management Association (NEMA). NEMA is an organization
of State Offices of Emergency Management. FEMA speakers will discuss agency
initiatives and the status of the Disaster Relief Fund. NEMA is particularly
significant for FEMA because most FEMA programs are run in conjunction with
State Offices of Emergency Management.
The Federal Emergency Management Agency will cohost the Joint Command
Readiness Program (JCRP) along with the U.S. Army Forces Command. The
meeting will enhance the combined military and civilian efforts to respond to the full
spectrum of domestic emergencies. FEMA Director Wallace Stickney, Associate
Director Grant Peterson, and other top FEMA officials will participate in this
important meeting.
FEMA to present NEHRP five year plan to Congress. FEMA will submit the
National Earthquake Hazard Reduction Program (NEHRP) plan to Congress by the
end of September. The plan presents the activities of FEMA, the U.S. Geological
Survey, the National Science Foundation, and the National Institute of Standards
and Technology. FEMA is the lead agency coordinating this five-year plan.
National Fire Administration (NFA) Administrator Olin Greene will address the
International Association of Fire Chiefs (IAFC) on major fire issues. The IAFC is
a major organization within the fire community. NFA Administrator Greene will
be discussing the major NFA initiatives, including the implementation of the Hotel
and Motel Fire Safety Act.
Insurance Administrator to address major insurance conference. Federal Insurance
Administration (FIA) Administrator C.M. "Bud" Schauerte will address a quarterly
meeting of the National Association of Insurance Commissioners (NAIC) to outline
major initiatives of the Federal Insurance Administration. FIA works with the
NAIC to improve the professional development of insurance agents regarding flood
insurance.
NEHRP Advisory Committee holds third meeting. Associate Director Grant
Peterson will attend the third meeting of the National Earthquake Hazard
Reduction Program (NEHRP) Advisory Committee. The Committee provides
advice and counsel on the Government's earthquake program activities.
Fire Administrator Olin Greene to address National Fire Protection Association.
Major initiatives of the National Fire Administration affecting the nation's fire
community will be the theme of NFA Administrator Greene's presentation.
Associate Director Tony Lopez will address major ceremony commemorating
National Hispanic Heritage Month. The ceremony will be jointly sponsored by
FEMA, the Departments of Education and Health and Human Services, and the
U.S. Information Agency. This year's theme is "500 Years of Hispanic Heritage:
1492-1992
A Cultural Mosaic."
INITIATIVES AND POLICIES UNDER DEVELOPMENT
New civil defense policy being developed. FEMA is working with the National
Security Council and the Presidential Coordinating Committee Subcommittee on
Civil Defense to develop new policy guidance for the civil defense program. The
new policy is expected to emphasize the development of emergency response capabi-
lities which are common to all types of emergencies as well as those unique to
attack.
FEMA developing a new nuclear power plants emergency preparedness manual.
FEMA is consolidating into a single document all of the exercise policies and
guidance for the Radiological Emergency Preparedness program. The manual will
cover the procedures for evaluating exercises designed to protect the health and
safety of the people living in the vicinity of nuclear power plants.
National Fire Administration initiative to help determine where Federal employees
may stay when traveling. Beginning September, 1992, Federal employees will not
be reimbursed for travel expenses unless they stay in hotels or motels that meet the
fire sprinkler requirements of the Hotel and Motel Fire Safety Act. The National
Fire Administration has begun the implementation process of the Act. This will
include working with Governors, State Fire Marshals, the Hotel and Motel industry
and other involved entities. States will submit lists of facilities over 3 stories tall
which meet the requirements. These will be forwarded to GSA for publication in
the Federal Travel Regulations.
SIGNIFICANT PROBLEM AREAS
Presidentially declared disasters are grossly underfunded. The Administration
submitted a $693 million supplemental appropriation request, a $90 million budget
amendment to the FY 92 Budget, and proposed regulatory and administrative
changes. The President declared $151 million of the $693 million should be
considered a "dire emergency," and thus exempt from offset provisions of the new
budget law. This is the amount by which Congress underfunded recent appropria-
tions requests. Public works projects submitted by States which have received
Presidential disaster declarations have been held up since mid-April, 1991.
Clean Air Act will affect availability of halon as a fire extinguishing agent. The
Clean Air Act phases out the production of halon, a major fire extinguishing agent.
The National Fire Administration will work with the Environmental Protection
Agency to advise them of the impact on the fire community and work with them on
specific exemptions permitted under the Act. In a separate but related matter, NFA
is working with the National Institute of Standards and Technology to find a safe
alternative to halon.
LEGISLATIVE ACTIVITIES
The Administration proposes to increase State share of certain Disaster Assistance
Programs. Appropriations language included in the $90 Million FY 1992 Budget
Amendment request will change the Federal-State cost sharing ratio from 100%
Federal to 75/25 for Temporary Housing and Disaster Unemployment Assistance.
REGULATIONS
FEMA is developing regulatory changes to the Disaster Assistance Program.
Briefly, these changes will establish more specific criteria for Presidential disaster
declarations and both waiver and loans of non-Federal shares of certain disaster
assistance programs.
National Earthquake Program interim rule comment period closes this month. The
rule implementing cost-sharing regulations for States participating in the National
Earthquake Program is expected to be published in early 1992.
REPORTS OR STUDIES
FEMA will be completing several major earthquake studies. Congress has directed
FEMA to study (1) options for funding post-earthquake investigation studies, (2) the
current state of earthquake mitigation and preparedness measures, (3) indirect eco-
nomic losses due to a catastrophic earthquake. FEMA is also involved in a major
study of vital infrastructures in the Cajon Pass and their vulnerability to a major
earthquake.
Remapping of the Los Angeles Basin is expected to identify an additional 100,000
structures as being in a 100 year flood plain. The Army Corps of Engineers will be
issuing new maps that begin the process for remapping the Los Angeles basin. Due
to increased development, the flood plain is expected to be larger than previously
estimated, thus including over 100,000 additional structures. The Corps action
begins a process that includes meetings with State Insurance Commission officials,
the Corps of Engineers, and others involved with flood plain management.
MEETINGS OR EVENTS
The second anniversary of Hurricane Hugo and the Loma Prieta earthquake take
place. September 18 is the second anniversary of Hurricane Hugo striking U.S.
territory, and October 17 is the second anniversary of the Loma Prieta earthquake.
There may be some limited media coverage of these anniversaries.
Major "table-top" exercise to simulate a radiological release from Kewaunee Nuclear
Power Plant. FEMA will participate in an important exercise along with the Energy
Department, the Environmental Protection Agency, Agriculture Department,
Transportation Department and Department of Health and Human Services in an
exercise hosted by the State of Wisconsin.
Deputy Director Jennings to represent FEMA at Tokyo conference. The Japanese
government is holding the Summit Conference on Earthquake and Natural Disaster
Countermeasures in Tokyo as part of the UN's International Decade for Natural
Disaster Reduction. Deputy Director Jerry Jennings will address the Plenary
Symposium to inform them of U.S. initiatives to reduce the impact of earthquakes.
Media event tentatively planned for Food and Shelter program. With the passage
of current levels in the FY 92 Budget, the total amount of funds appropriated over
the years by Congress for the Emergency Food and Shelter program will exceed the
$1 Billion level. The formula for distributing the funds is determined by a national
board of major charities which is chaired by FEMA. The National Board is
tentatively planning a media event to announce the billion dollar level.
A FEMA exercise will simulate an earthquake in the Puget Sound area. Response
91B, an exercise designed to test the Federal Response Plan will be conducted in
Seattle in mid-November. The exercise will involve representatives from 27 Federal
agencies, State officials, and Canadian emergency management officials.
FEMA will evaluate the Pilgrim Nuclear Power Plant full-scale December exercise.
Nuclear Regulatory Commission (NRC) regulations require nuclear power plants
to conduct full-scale biennial exercises. The Pilgrim exercise will involve officials
from the Commonwealth of Massachusetts, the power plant, local jurisdictions, and
the NRC. This will be the first major activity at Pilgrim since the NRC Inspector
General issued his report on Pilgrim and the completion of the joint NRC/FEMA
Pilgrim Task Force assessment.
Federal Insurance Administration (FIA) biennial conference addresses issues
affecting diverse constituency groups. The Biennial conference in October will
involve flood plain managers, insurance marketers, banks, lenders, and state and
local officials to discuss all aspects of the FIA programs.
NEGOTIATIONS
The Food and Shelter funds distribution formula is expected to change. The
National Board that governs the activities of the Emergency Food and Shelter
program is reviewing the formula used to distribute funds. The Board is likely to
change the formula to enhance the eligibility of smaller cities and towns to receive
Emergency Food and Shelter funds.
FEMA will continue discussions with New York State to collect $7.5 million owed
since 1980. New York State owes FEMA $7.5 million in connection with an
agreement signed in 1980 related to the Love Canal pollution issue. FEMA has
been discussing possible action to offset other FEMA funds going to the New York
State government in an effort to collect the funds owed to FEMA.
COURT DECISIONS/LITIGATION
No major court decisions or litigation activity is anticipated over the next 3 months.
Although there have been no indications to date that litigation is being
contemplated, the failure of FEMA to obligate funds for public works projects
associated with disaster recovery may at some point become the subject of a lawsuit.
AGENCY NEWS
Sixty Minutes will air a program on the Chemical Stockpile Emergency Preparedness
Program. Sixty Minutes reporter Morley Safer and a film crew have visited Blue
Grass, Kentucky and Tooele, Utah to conduct interviews with local residents about
the Army's Chemical Stockpile Disposal Program (i.e. destroying unitary chemical
weapons through incineration) sites located in those communities. The Kentucky
site is particularly controversial because of its proximity to populated areas.
Urban Search and Rescue (US&R) initiative awards first $1.9 million in grants.
Twenty-five qualified US&R Task Forces will receive grants not to exceed $100,000
to fund specialized equipment necessary to qualify as part of the national urban
search and rescue network.
SEP 13 '91 17:20
FROM NASA CODE X
PAGE. 002
NASA
National Aeronautics and
Space Administration
Washington, D.C.
20546
Reply to Attn of: X
SEP I 3 1991
MEMORANDUM FOR EDE HOLIDAY
ASSISTANT TO THE PRESIDENT
AND SECRETARY OF THE CABINET
FROM:
JOHN D. SCHUMACHER
DEPUTY ASSOCIATE ADMINISTRATOR FOR
EXTERNAL RELATIONS
SUBJECT:
1991 Fall Issues Review
The following report summarizes key issues and activities at NASA
for the period from September 15 to December 31, 1991.
I.
HIGHEST PRIORITIES EW Summary Listing
OPERATIONS
Space Shuttle Missions:
-
STS-48 (Upper Atmospheric Research Satellite) Scheduled
for September 1991.
-
STS-44 (Unclassified DOD Satellite) Scheduled for
November 1991.
-
FY 1992 NASA Budget.
Expendable Launch Vehicle Launches:
-
Extreme Ultraviolet Explorer (EUVE) Launch aboard a
Delta II (December).
-
National Oceanic and Atmospheric Administration Polar
Meteorological Satellite (NOAA-I) Launch aboard an
Atlas E (December).
BUDGET
-
FY 1992 NASA Budget that provides for a balanced
program, including Space Station Freedom.
1
FY 1993 NASA Budget Preparation.
PROGRAMS
-
Earth Observing System (EOS) program implementation
under review.
SEP 13 '91 17:21
FROM NASA CODE X
PAGE. 003
-
Critical Design Review of Space Station Freedom
subsystems.
-
Continued implementation of the Report of the Advisory
Committee on the Future of the U.S. Space Program.
-
Establish Commercial C-Band Services using TDRSS.
II. SECRETARIAL ACTIVITIES
-
September 17.
Education Video Conference with
President Bush at NASA Headquarters.
-
September 20.
NASA's Multicultural Education Program
Seminar, Denver, CO.
-
September 22.
Remarks, Aerospace Walk of Honors Award
Celebration, Lancaster, CA.
-
September 23.
Site Visit, NASA's Dryden Flight
Research Facility, Edwards, CA.
-
September 24-25.
NASA Advisory Council Meeting.
-
September 27-29.
Site Visit, NASA's Langley Research
Center, Hampton, VA; Johnson Space
Center, Houston, TX; and Marshall
Space Flight Center, Huntsville, AL
with Dr. Allen Bromley.
1
October 2.
NASA Honor Awards Ceremony.
-
October 7.
Master of Ceremonies, G.I. Joe Search
for Real American Heroes Awards
Program, Washington, DC.
-
October 25-26.
Site Visit, NASA's Stennis Space
Center, Mississippi.
-
October 29.
Keynote Speaker, Space Exploration
Conference, Houston, TX.
-
November 5-6.
National Academy of Sciences,
Government-University-Industry Research
Roundtable Meeting.
1
November 6-7.
Eighth Annual NASA/Contractors
Conference and National Symposium,
Houston, TX.
-
November 13-14. NASA Advisory Council Meeting.
1
November 19.
STS-44 Launch.
2
SEP 13 '91 17:21
FROM NASA CODE X
PAGE. 004
-
December 6-7.
NASA Senior Management Meeting,
Huntsville, AL.
III. INITIATIVES AND POLICIES UNDER DEVELOPMENT
Earth Observing System (EOS).
Significant developments over the last several months have
led NASA to reevaluate implementation for the EOS program.
In addition to the unplanned availability of an intermediate
sized launch vehicle, Congressional (Senate Appropriations)
proposals indicated that EOS funding availability through FY
2000 will be reduced by $5 billion. NASA has asked the EOS
Investigator Working Group, composed of all EOS scientists,
to prioritize the science associated with this mission.
Officials are examining alternative implementation concepts,
including use of smaller complements of instruments on
smaller spacecraft. Final recommendations on program imple-
mentation are planned to be complete in time to support the
President's FY 1993 budget submission to Congress.
The Advisory Committee on the Future of the U.S. Space
Program
NASA continues to examine and implement the recommendations
of the Advisory Committee on the Future of the U.S. Space
Program.
Space Exploration Initiative
NASA, along with the Departments of Defense and Energy, is
supporting the National Space Council's efforts to develop a
proposed Presidential decision document which identifies the
steps to be taken by NASA and other Federal agencies in
planning the nation's future space exploration activities.
Office of Exploration
An Office of Exploration has been established at NASA
Headquarters and an Associate Administrator for Exploration
has been selected to lead the Agency's work in planning for
the Space Exploration Initiative.
Commercial Programs.
-
Restructuring of the Commercial Payload Selection Board
in response to GAO Report findings.
-
Finalize the guidelines for foreign participation in
Commercial Centers for the Development of Space.
-
Selection of six Regional Technology Transfer Centers
(RTTC) to be completed by the end of September.
1
Continued development of the National Technology
Transfer Center in Wheeling, West Virginia.
3
SEP 13 '9! 17:22 FROM NASA CODE X
PAGE. 005
Space Station Freedom Program
The Critical Design Reviews of Space Station Freedom
subsystems will begin. The Final Critical Design Review at
the system level is scheduled for April 1993.
IV. LEGISLATIVE ACTIVITIES
A.
Key Issues
-
Achieving optimal funding of the President's FY
1992 budget request for NASA.
-
Resolution of Conference on FY 1992 VA-HUD-
Independent Agencies appropriations bill in manner
most advantageous to President's program for NASA;
House-passed bill funds all NASA accounts at FY
1991 baseline (a cut of $1.9B from the request),
while Senate-passed bill provides $437M above the
baseline and fully funds Space Station Freedom at
President's request level.
-
Mars Observer: Spacecraft and Instrument
Production Schedule Concerns (FY 1992 Budget
Issue). JPL identified FY92 funding require-
ments of $90M. Senate Appropriations Committee
mark-up added $25M and capped FY92 expenditures at
$79.4M.
1
Mars Observer: Achieving funding for Titan launch
pad upgrades required for Mars Observer launch
(DOD-Appropriations issue).
-
CRAF/Cassini: Senate Appropriations Committee
recommends elimination of CRAF, significant
reduction in near-term budgets, and program cap.
-
Earth Observing System: Senate Appropriations
Committee Markup directs reduction of $5B from EOS
through the year 2000.
-
LifeSat: Senate Appropriations Committee language
terminates LifeSat.
-
Phase E Studies: Senate Appropriations Committee
reduction of all funding from Phase B studies
4
SEP 13 '91 17:22 FROM NASA CODE X
PAGE. 006
including the Space Infrared Telescope Facility
(SIRTF), Orbiting Solar Laboratory (OSL), and the
Gravity Probe-B.
B.
Key Activities
Sept -
Senate floor action on H.R. 1988, the FY
1992 NASA authorization bill, is pending,
and could occur at any time.
I
House and Senate Appropriations
Committees will mark up the FY 1991
Emergency Supplemental.
-
House and Senate Appropriations Committees
will mark up a FY 1992 Continuing Resolu-
tion, which is expected to provide for
continued funding for Government programs
through October 17.
House/Senate Conference action on H.R.
2519, the FY 1992 VA-HUD-Independent
Agencies appropriations bill, is expected
to begin very late in September, and is
unlikely to be completed before September
30. Senate Conferees have been named.
House Conferees have not yet been
designated.
Oct
-
House/Senate Conference action on H.R.
1988, the FY 1992 NASA authorization bill,
is unlikely to begin before October.
¿
Hearing Schedule
Sept 12 - Technology and Economic Performance.
Senate Joint Economic Committee (Chrm.
Sarbanes). NASA witness to be determined.
Sept 24 - Earth Benefits of Space Biomedical Research.
House Committee on Science, Space and
Technology (Chrm. Brown). Witness to be
determined.
Sept 25 - Executive Branch Lobbying. Senate Sub-
committee on Oversight of Government
Management (Chrm. Levin), Committee on
Government Affairs. NASA witness to be
determined.
Sept
- Science Data Management Senate Sub-
Committee on Science, Technology and Space
(Chrm. Gore), Committee on Commerce, Science
5
SEP 13 '91 17:23 FROM NASA CODE X
PAGE. 007
and Transportation. Witnesses to be
determined.
Sept
- Commercial Space Markets. House Sub-
committee on Space (Chrm. Hall), Committee
on Science, Space and Technology. Witnesses
to be determined.
Sept/
- Global Warming. Senate Subcommittee on
Oct
Science, Technology and Space (Chrm. Gore),
Committee on Commerce, Science and Trans-
portation. A series of round table
discussions and hearings is planned, devoted
to a number of aspects of global warming,
with witnesses to be called from NASA field
installations, universities, and industry.
Oct
- Life Sciences Research. House Science,
Space, and Technology Committee (Chrm. Hall)
Subcommittee on Space. Witnesses to be
determined.
TBD
- Foreign Competition on U.S. Government
procurement of supercomputers. House
Committee on Government Operations (Chrm.
Conyers). Expected issues to be addressed
include: GSA's policy and oversight role;
the implication of the supercomputer trade
agreement with Japan; and its effect, if
any, on provisions of the Competition in
Contracting Act. Witnesses to be deter-
mined.
D.
Congressional Reports.
Sept
- À report to the House Science, Space and
Technology Committee and the Senate Appro-
priations Subcommittee on VA-HUD-Independent
Agencies on comparative costs of launching
the TDRS-G spacecraft on the Space Shuttle
versus an expendable launch vehicle.
Sept
- A report to the House Science, Space and
Technology Committee concerning accomplish-
ment of planned enhancements in the Assured
Shuttle Availability Program.
Oct
- A report to the House Authorization
Committee on Hubble Space Telescope (HST)
6
SEP 13 '91 17:23 FROM NASA CODE X
PAGE. 008
Operations. Document early operations of
the HST Science Institute. Required by
House Report 99-32.
Nov
- A report to the House Authorization
Committee on the Earth-Orbit Asteroids
Workshop Studies. Define program for in-
creasing detection rate of asteroids and
define systems or techniques to alter orbits
of asteroids or destroy them. Required by
House Report 101-763.
Nov
-
A report to the House Science, Space and
Technology Committee regarding the results
of workshop studies concerning Earth-
crossing asteroids.
Nov
A report to the House Science, Space and
Technology Committee outlining plans for
increasing the incentives for NASA's Centers
for the Commercial Development of Space
(CCDS's) to obtain industry cash support,
as well as NASA's review process for evalu-
ating industry support and plans for periodic
recompetition of CCDS contracts.
Dec
A report to the House Authorization Committee
on NASA's response to the findings and
recommendations of the Synthesis Group, as
well as its plans for incorporating those
findings into its activities in fiscal year
1992.
Dec
-
A long-range management plan for the Space
Station Freedom program to the House Science,
Space and Technology Committee, to include
evolution of systems engineering and inte-
gration and operations responsibilities.
Dec
-
A report ot the House Committee on Science,
Space and Technology responding to the
findings of the Synthesis Group concerning
alternative approaches to the conduct of the
Space Exploration Initiative.
Dec
-
A report to the Senate Appropriations Sub-
committee on VA-HUD-Independent Agencies
assessing a plan proposed by the University
of Alaska for improvement and modernization
of the Poker Flat Research Range, and
providing a construction program outline.
SEP 13 '91 17:24
FROM NASA CODE X
PAGE. 009
V.
OTHER REPORTS AND STUDIES
-
Centers for the Commercial Development of Space Annual
Reviews.
-
Release in November of the SPINOFF 1991 publication
which addresses technology transfer, technology utili-
zation, and secondary technology applications. (This
annual publication is intended to foster technology
utilization by beightening awareness of the NASA
technology available for transfer and its potential
benefits.)
VI. MEETINGS OR EVENTS
A.
NASA Programs - Significant Events
Sept
- US-USSR Joint Working Group on Earth
Science, Washington, DC.
Sept
- Direct x-ray test of Advanced X-Ray Astro-
physics Facility (AXAF) mirrors.
Sept
- Proposals due for Earth Observing System
(EOS) Data and Information System.
Sept
- Second Workshop on Earth-orbit-Crossing
Asteroids, Ames Research Center.
Sept
- NASA Advisory Council's Exploration Task
Force meeting, Washington, DC.
Sept/
-
US/USSR Solar System Exploration Joint
Oct
Working Group, Moscow, U.S.S.R.
Oct
- Galilec Flyby of the asteroid Gaspra.
Oct
- NASA/NOAA/ERIM Earth Observations and
Global Decisionmaking Conference,
Washington, DC.
Nov
- Eighth Annual NASA/Contractors Conference
and National Symposium, Houston, TX.
Nov
- Centers for the Commercial Development of
Space Quarterly Business Meeting.
Nov
- Announcement of Phase I Small Business
Innovative Research (SBIR) Selections.
Nov
- Announcement of the 1991 Recipient(s of
the George M. Low Trophy, which is NASA's
Quality and Excellence Award.
8
SEP 13 '31 17:24
FROM NASA CODE X
PAGE.010
Dec
- Fifth Committee on Earth Observations
Satellites - Plenary, Washington, DC.
Dec
- Telemedicine and Disaster Medicine
Conference, Washington, DC
Dec
- Announcement of Phase II SBIR Selections.
Dec
- Technology 2001, the Second National Tech-
nology Transfer Conference and Exposition,
San Jose, CA.
International Agreements
Oct/Nov - NASA/Italian Space Agency Memorandum of
Understanding concerning bilateral
cooperation on Space Station Freedom.
Dec
- NASA/National Space Development Agency
of Japan Memorandum of Understanding for
flight of NASA Earth sciences instruments
on a Japanese platform.
International Meetings
Sept 23-27 - US/USSR Earth Sciences Joint Working
Group, Washington, DC.
Sept/
- US/USSR Solar System Exploration
Oct
Joint Working Group, Moscow, U.S.S.R.
Oct
- Radiation Safety of Manned Space Mission
to Mars, Dubno, U.S.S.R.
Oct 2
- Visit of German Minister for Research and
Technology.
Oct 2-4
-
Visit of Chairman, Executive Board, German
Aerospace Research Establishment
Oct 7-11 - International Astronautical Federation
Conference, Montreal, Canada.
Oct 13-15 - Pacific International Space Year
Conference, Hawaii
Oct
- Semi-Annual Review Meeting for the
Cooperative Radioastron Mission, Moscow,
U.S.S.R.
9
SEP 13 '91 17:25
FROM NASA CODE X
PAGE. 011
Oct
- NATO Advanced Study Institute on
Biological Effects and Physics of Solar
and Galactic Cosmic Radiation, Argiraz,
Portugal.
Nov 19-21 - Interagency Consultative Group for Space
Science Meeting, Japan.
Nov
- NASA/Japan Cooperative Space Activities
Planning Group, Japan.
Nov 18-19 - European Space Agency Ministerial
Conference, Munich, Germany
Dec
- Visit of French Space Agency Director
General.
B.
NASA's Education Activities in Support of America 2000
Sep 14-18
Space Science Student Involvement Program
(SSIP) National Symposium, Washington, DC.
This is the culminating event in a national
competition sponsored by NASA and the
National Science Teachers Association, in
which middle and high school students
design experiments for a theoretical space
station, compete in journalism and art
competitions, and design experiments that
could theoretically be performed on a
supercomputer, in a zero gravity research
facility, or in a wind tunnel testing
facility.
Sept 17
- Live from Washington, DC, via NASA Select,
President Bush will join NASA Administrator
Truly for a unique math and science lesson
aimed at elementary level students. Third
and fourth graders from Virginia, Maryland,
the District of Columbia, and LaPorte, TX,
will learn about living and working in
space and will be able to ask the President
questions. Participants include Astronauts
Charlie Bolden and Tammy Jernigan, and NASA
Goddard Aerospace Education Specialist Lisa
McLeod. In addition to NASA Select
carrying the program, it will be broadcast
on local PBS stations throughout the
country.
Sept-Nov - Urban Community Enrichment Program being
conducted in Richmond VA. A team of NASA
Aerospace Education Specialists will work
in that community for eight-weeks
10
SEP 13 '91 17:25
FROM NASA CODE X
PAGE. 012
conducting teacher workshops, presenting
classroom and assembly programs, and
planning community activities.
Sept-Dec
- Strategic planning for the National Space
Grant College and Fellowship Program.
Oct 16
- NASA Educational Satellite Videoconference,
the "Space Exploration Initiative."
Approximately 3,000 institutions and over
10,000 teachers are expected to
participate. There will be four NASA
Educational Satellite Videoconferences
broadcast during the 1991-92 school year.
Oct 17-18 - Meeting of Summer Faculty Fellowship
Program administrators, in part to discuss
ideas for extension and enrichment of the
program, including the possible inclusion
of undergraduate researchers.
Oct 24-26 - Urban Community Enrichment Program Core
Teachers Training Workshop scheduled in
Puerto Rico. Five NASA Aerospace Education
Specialists will conduct an intensive
workshop for approximately 30 teachers to
enhance their mathematics, science, and
technology knowledge and skills. Those 30
teachers will then return to their
individual schools and conduct similar
workshops for other teachers in preparation
for the eight-week program to be conducted
during January-March.
Oct 27-30 - Annual Agencywide Educational Affairs
Meeting, Nashville, TN. NASA Field Center
Educational Program Officers, University
Affairs Officers, Public Affairs Officers,
and Equal Opportunity Program Officers will
meet to ensure a coordinated effort in
supporting America 2000, and undertaking
NASA educational activities.
Oct 29
- Release of Magellan flyover video and
associated Teacher's Guide at public
lecture on Magellan results at the National
Air and Space Museum, Washington, DC.
Dec 11
- NASA Educational Satellite videoconference,
"Life Science Research." Approximately
3,000 institutions and over 10,000 teachers
are expected to participate.
11
SEP 13 '91 17:26
FROM NASA CODE X
PAGE. 013
Dec
- NASA-Industry Education Initiative. This
cooperative effort between NASA and 30
corporations focuses on assisting
achievement of the National Education
Goals. The initiative's first objective,
to define current NASA and contractor
support to American education, is in its
final stages and will result in a published
report in January of 1992. Report data
will be used to identify opportunities for
future NASA-industry cooperation on
education programs.
Fall
- Second videotape in the educational series
Liftoff to Learning, "Go for Extravehicular
Activity," available with an accompanying
Teacher's Video Resource Guide through the
NASA Teacher Resource Center Network and on
NASA Select. The teacher's guide may also
be downloaded from NASA Spacelink, NASA's
electronic bulletin board.
Ongoing
- NASA's support will continue for the Tri-
State Education Initiative. The initiative
is designed to promote and support the
efforts of Alabama, Tennessee, and Mississ-
ippi communities within a 50-mile radius of
the NASA Advanced Solid Rocket Motor (ASRM)
plant in Iuka, Mississippi, to develop a
quality education system that will permit
area citizens to obtain the skills required
in a high-technology economy.
VII. EVENTS/STORIES OF INTEREST TO THE MEDIA
Sept 12
-
Launch of Space Shuttle Discovery (STS-48)
on a 5-day mission including deployment of
Upper Atmosphere Research Satellite, and
first night landing at Kennedy Space
Center, FL.
Sept 14
-
Members of the Advisory Committee on the
Future of the U.S. Space Program meet at
Kennedy Space Center, FL.
Sept 17
-
President Bush joins Administrator Truly on
NASA Select Television for live program
"Launching the School Year with President
Bush," aimed at elementary-level students.
Sept 19
-
Press briefing on early results from the
Space Life Sciences (SLS-1) mission,
Washington, DC.
12
SEP 13 '91 17:27 FROM NASA CODE X
PAGE. 014
Sept 23-27 -
Scheduled meeting of US-USSR Joint Working
Group on Earth Sciences, Washington, DC.
Sept 23
-
Science Briefing on Gamma Ray Observatory
results, Washington, DC.
Sept
-
Release of Earth Observing Satellite
Engineering Review Advisory Committee Final
Report.
Oct 29
-
Galileo spacecraft flies by asteroid
Gaspra.
Oct
-
Public Lecture on Magellan science results,
Washington, DC.
Mid-Nov -
Launch of Space Shuttle Atlantis (STS-44)
on a 10-day DOD mission, Kennedy Space
Center, FL.
Dec
-
Launch of Delta II with Extreme Ultraviolet
Explorer (EUVE) satellite, Cape Canaveral,
FL.
Dec 3
-
Launch of Atlas-E with NOAA-I environmental
satellite, Vandenberg AFB, CA.
Dec 3-5
-
Technology 2001 Conference, San Jose, CA.
Dec
-
IML-1 L-30 Briefing, Johnson Space Center
and Marshall Space Flight Center.
Achumerh
John D. Schumacher
13
OFFICE OF NATIONAL DRUG CONTROL POLICY
EXECUTIVE OFFICE OF THE PRESIDENT
Washington, D.C. 20500
September 13, 1991
MEMORANDUM FOR EDE HOLIDAY
ASSISTANT TO THE PRESIDENT
AND SECRETARY TO THE CABINET
FROM:
BOB MARTINEZ
DIRECTOR
1991 Fall Issues BooMate Assessment
SUBJECT:
The following report summarizes key issues and activities at the
Office of National Drug Control Policy for September 15 to
December 31, 1991:
I. HIGHEST PRIORITIES -- SUMMARY LISTING
1.
Highlight continuing downward progress of drug use
indicators.
2.
Develop 1992 National Drug Control Strategy.
3.
Stress the importance of reducing the number of heavy
drug users through drug treatment and law enforcement.
4.
Continued implementation of the 1989, 1990, and 1991
National Drug Control Strategies.
II. SURVEY OF KEY ISSUES
ACTIVITIES OF THE DIRECTOR
September 16,
19, 20, 30.
Governor Martinez will hold four "Kitchen
Cabinet" Meetings, which will bring together
a group of experts for informal discussions
focusing on prevention, international,
treatment, and law enforcement topics and
concerns.
September 23.
Governor Martinez will travel to Montreal,
Canada to address the World Conference on
Therapeutic Communities.
October-
November.
Governor Martinez will conduct of series of
public hearings around the country in order
to learn first hand what more needs to be
done to achieve continued success in the war
on drugs. The first two hearings are
scheduled to be held in Los Angeles,
California and Colombia, Missouri.
October 12-22.
Governor Martinez is planning to travel to
Europe to meet with his European counterparts
and heads of state in Spain, Italy, Germany,
France, Amsterdam, and the United Kingdom to
discuss involvement of the European Community
in efforts to counter the production of and
international traffic in illicit drugs.
INITIATIVES AND POLICIES UNDER DEVELOPMENT
Nothing to report.
SIGNIFICANT PROBLEM AREAS
Congressional Budgetary Priorities -- In the increasingly tight
budgetary environment, there is the continuing danger that the
Congress will not meet the President's request for anti-drug
programs in both the supply and demand side areas.
LEGISLATIVE ACTIVITIES
National Drug Control Strategy Implementation Act of 1991 --
ONDCP transmitted legislation to implement the President's 1991
National Drug Control Strategy in June. The following are
primary elements of the legislation:
a.
Statewide Drug Treatment and Prevention Plans -- As he
did in his prior two Strategies, the President has
again asked Congress to require each State to develop
and implement a Statewide Treatment and Prevention Plan
as a condition of receiving Federal Alcohol, Drug
Abuse, and Mental Health (ADAMHA) block grant funds.
The purpose of this requirement is to ensure that each
State has a framework within which to monitor and hold
accountable State treatment and prevention programs.
b.
Capacity Expansion Program -- The President's 1991
National Drug Control Strategy calls for $100 million
to be spent on a new, carefully targeted program to
expand drug treatment capacity in the States.
C.
Maintenance of Effort -- This legislation would prevent
States from supplanting their own expenditures for
drug-related activities with ADAMHA block grant funds.
Senate Confirmation of Associate Director for State and Local
Affairs -- After nomination by the President, ONDCP will work to
ensure speedy confirmation.
Crime Bill -- ONDCP will continue to work with the Department of
Justice to urge swift consideration of the President's Crime
Bill, which contains a number of drug-related provisions.
ADAMHA Reauthorization -- Congress will consider legislation
reauthorizing the Alcohol, Drug Abuse, and Mental Health block
grant program. ONDCP will work with the Department of Health and
Human Services to ensure that this legislation reflects the
President's drug treatment and research priorities.
Peru Determination -- The Peru Determination was transmitted to
the Congress on July 30, 1991 requesting economic aid for Peru
totaling $94 million. A number of holds were placed on the
notification based on human rights concerns and poor
counternarcotics performance. ONDCP has been urging Congress to
lift the holds on the Peru Determination as the Bush
Administration believes that aid to Peru is indispensable in
combatting the war on drugs. Because of Peru's position as the
largest producer of coca leaf, we would suffer a setback in
halting cocaine trafficking from Peru and the entire Andean
region.
REGULATIONS
Nothing to report.
REPORTS OR STUDIES
September 17.
Release of Drug Abuse Warning Network (DAWN)
data for 1991.
December 15.
Release of 1991 Household Survey on drug
abuse.
MEETINGS OR EVENTS
Nothing to report.
NEGOTIATIONS
Nothing to report.
COURT DECISIONS/LITIGATION
Nothing to report.
OTHER
Nothing to report.
OFFICE OF NATIONAL DRUG CONTROL POLICY
EXECUTIVE OFFICE OF THE PRESIDENT
Washington, D.C. 20500
September 13, 1991
MEMORANDUM FOR EDE HOLIDAY
ASSISTANT TO THE PRESIDENT
AND SECRETARY TO THE CABINET
FROM:
BOB MARTINEZ
DIRECTOR
1991 Fall Issues BooMation
SUBJECT:
The following report summarizes key issues and activities at the
Office of National Drug Control Policy for September 15 to
December 31, 1991:
I. HIGHEST PRIORITIES -- SUMMARY LISTING
1.
Highlight continuing downward progress of drug use
indicators.
2.
Develop 1992 National Drug Control Strategy.
3.
Stress the importance of reducing the number of heavy
drug users through drug treatment and law enforcement.
4.
Continued implementation of the 1989, 1990, and 1991
National Drug Control Strategies.
II. SURVEY OF KEY ISSUES
ACTIVITIES OF THE DIRECTOR
September 16,
19, 20, 30.
Governor Martinez will hold four "Kitchen
Cabinet" Meetings, which will bring together
a group of experts for informal discussions
focusing on prevention, international,
treatment, and law enforcement topics and
concerns.
September 23.
Governor Martinez will travel to Montreal,
Canada to address the World Conference on
Therapeutic Communities.
October-
November.
Governor Martinez will conduct of series of
public hearings around the country in order
to learn first hand what more needs to be
done to achieve continued success in the war
on drugs. The first two hearings are
scheduled to be held in Los Angeles,
California and Colombia, Missouri.
October 12-22.
Governor Martinez is planning to travel to
Europe to meet with his European counterparts
and heads of state in Spain, Italy, Germany,
France, Amsterdam, and the United Kingdom to
discuss involvement of the European Community
in efforts to counter the production of and
international traffic in illicit drugs.
INITIATIVES AND POLICIES UNDER DEVELOPMENT
Nothing to report.
SIGNIFICANT PROBLEM AREAS
Congressional Budgetary Priorities -- In the increasingly tight
budgetary environment, there is the continuing danger that the
Congress will not meet the President's request for anti-drug
programs in both the supply and demand side areas.
LEGISLATIVE ACTIVITIES
National Drug Control Strategy Implementation Act of 1991 --
ONDCP transmitted legislation to implement the President's 1991
National Drug Control Strategy in June. The following are
primary elements of the legislation:
a.
Statewide Drug Treatment and Prevention Plans -- As he
did in his prior two Strategies, the President has
again asked Congress to require each State to develop
and implement a Statewide Treatment and Prevention Plan
as a condition of receiving Federal Alcohol, Drug
Abuse, and Mental Health (ADAMHA) block grant funds.
The purpose of this requirement is to ensure that each
State has a framework within which to monitor and hold
accountable State treatment and prevention programs.
b.
Capacity Expansion Program -- The President's 1991
National Drug Control Strategy calls for $100 million
to be spent on a new, carefully targeted program to
expand drug treatment capacity in the States.
C.
Maintenance of Effort -- This legislation would prevent
States from supplanting their own expenditures for
drug-related activities with ADAMHA block grant funds.
Senate Confirmation of Associate Director for State and Local
Affairs -- After nomination by the President, ONDCP will work to
ensure speedy confirmation.
Crime Bill -- ONDCP will continue to work with the Department of
Justice to urge swift consideration of the President's Crime
Bill, which contains a number of drug-related provisions.
ADAMHA Reauthorization -- Congress will consider legislation
reauthorizing the Alcohol, Drug Abuse, and Mental Health block
grant program. ONDCP will work with the Department of Health and
Human Services to ensure that this legislation reflects the
President's drug treatment and research priorities.
Peru Determination -- The Peru Determination was transmitted to
the Congress on July 30, 1991 requesting economic aid for Peru
totaling $94 million. A number of holds were placed on the
notification based on human rights concerns and poor
counternarcotics performance. ONDCP has been urging Congress to
lift the holds on the Peru Determination as the Bush
Administration believes that aid to Peru is indispensable in
combatting the war on drugs. Because of Peru's position as the
largest producer of coca leaf, we would suffer a setback in
halting cocaine trafficking from Peru and the entire Andean
region.
REGULATIONS
Nothing to report.
REPORTS OR STUDIES
September 17.
Release of Drug Abuse Warning Network (DAWN)
data for 1991.
December 15.
Release of 1991 Household Survey on drug
abuse.
MEETINGS OR EVENTS
Nothing to report.
NEGOTIATIONS
Nothing to report.
COURT DECISIONS/LITIGATION
Nothing to report.
OTHER
Nothing to report.
UNITED STATES
UNITED STATES
OFFICE OF PERSONNEL MANAGEMENT
OFFICE OF PERSONNEL TRANSPORT
WASHINGTON. D.C. 20415
OFFICE OF THE DIRECTOR
SEP 13
MEMORANDUM FOR EDE HOLIDAY
ASSISTANT TO THE PRESIDENT AND
SECRETARY OF THE CABINET
FROM:
DIRECTOR CONSTANCE BERRY NEWMAN Cantace
Subject: 1991 Fall Issues Review
The following report summarizes key issues and activities at the
Office of Personnel Management for September 15 through December
31, 1991.
I. HIGHEST PRIORITIES -- SUMMARY LISTING
- In support of the President's Education Initiative,
America 2000, OPM is continuing to work with Departments and
agencies to encourage the development of implementation
strategies. We will provide general information about the
America 2000 initiative's impact on the Federal Government,
develop information about "skill centers" and explain how a range
of skill center activities can be implemented economically and
effectively, and provide information about skill upgrading.
- Continue the various activities of the Administration's
Federal Employees Health Benefits Program reform efforts with the
Domestic Policy Council Task Force created to address this issue.
A proposal is being prepared for presentation to the Domestic
Policy Council. Tab A
- Development of Pay for Performance Systems for the
Federal Workforce. Tab B
- Continue implementation of the Federal Employees Pay
Comparability Act (FEPCA). Tab C
- Complete development and begin implementation of human
resource development strategies to improve executive, management,
and supervisory programs OPM offers to other agencies, and to
make systemic improvements in the way agencies manage their human
resources.
2
II. SURVEY OF KEY ISSUES
DIRECTOR'S ACTIVITIES
The Director will address:
-
September 18. The Director will address via video
conference the participants at OPM's Western Executive Seminar
Center in Denver, Colorado. The Western Executive Seminar Center
is a training facility for Federal executives who work in the
Western United States. Topic: The Administration's Top Federal
Human Resources Management Priorities.
-
September 19. The Director will address the 1990-91
graduating class of the Council for Excellence in Government
Fellows during a graduation ceremony and Excellence in Government
Lecture program in the National Academy of Sciences Auditorium in
Washington, D.C. The Council for Excellence in Government is an
organization consisting of former Government officials who
promote the improvement of the workings of the Federal
Government. Topic: The State of the Civil Service.
-
September 22. The Director will address the Hispanic
Association of Colleges and Universities' Fifth Annual Meeting in
San Juan, Puerto Rico. Topic: Creating a More Diverse Federal
Workforce.
-
September 24. The Director will address the Department of
Health and Human Services Human Resource Management Conference in
Baltimore, Maryland. Topic: Human Resources Management in the
1990's.
-
September 30. The Director will address OPM's observance of
National Hispanic Heritage Month. Topic: 500 Years of Hispanic
Heritage.
-
October 4. The Director will speak at a roundtable on women
in the public sector sponsored by the National Capital Area
Chapter of the American Society for Public Administration. The
transcripts of the roundtable will serve as a basis for a career
guide for women in Government which will be published and
distributed free-of-charge. Topic: Women and Leadership in the
Public Sector.
-
October 7. The Director will speak at the 1991 Training
Conference on Public Personnel Administration sponsored by the
International Personnel Management Association in Philadelphia,
Pennsylvania. Topic: Public Service and the Role of Human
Resource Management.
-
October 11. The Director will speak at the International
Consortium of Black Women in Business 1991 Conference in
Washington, D.C. Topic: Leadership for the Future.
3
-
October 16-17. The Director will address the U.S.
Department of Treasury, Bureau of Public Debt, Managers' Forum in
Washington, D.C., and Parkersburg, West Virginia. Topic: Human
Resources and the Federal Workplace.
-
October 17. The Director will address the Department of the
Army, Huntington District Corps of Engineers, Career Day in
Huntington, West Virginia. Topic: Career Goals and Advancement
in the Federal Service.
-
October 24. The Director will address the U.S. Department
of Treasury Federal Law Enforcement Training Center Distinguished
Lecturer Program in Glynco, Georgia. Topic: The Future of
Training in the Federal Government.
-
October 29. The Director will address "Access 2000, II a
conference sponsored by OPM to address the issues associated with
access for people with disabilities to employment opportunities
in the Federal Government. Topic: The Need to Employ People
With Disabilities.
-
November 5. The Director will address a special forum
sponsored by the Nuclear Regulatory Commission on "Strengthening
the Federal Women's Program." Topic: Employing Women in the
Federal Government.
-
November 19. The Director will address the 1991 OPM
Conference of Agency Classification Program Managers. Topic:
Classification Reform.
-
November 20. The Director will address the annual
conference of the Federal Section of the International Personnel
Management Association in Washington, D.C. Topic: Managing
Change in Federal Human Resources Management.
-
December 3. The Director will speak at the first World
Congress on Technology, an international conference focusing on
technology in the workplace for people with disabilities. The
conference is being sponsored by the Council on Accessible
Technology. Topic: The Americans with Disabilities Act and the
Federal Workplace.
-
December 4. The Director will speak at the 22nd Annual
Conference of the Classification and Compensation Society.
Topic: Classification Reform in the Wake of Pay Reform.
4
INITIATIVES AND POLICIES UNDER DEVELOPMENT
LEGISLATIVE ACTIVITIES
- Federal Retirement Program. OPM will seek to amend the
retirement provisions to simplify administration of this program.
- FEPCA Technical Amendments. The Administration submitted
proposed legislation to Congress in late June 1991 to clarify the
original intent of certain provisions of the Federal Employees
Pay Comparability Act of 1990 and to correct certain technical
drafting errors in that legislation. The proposed legislation
was introduced in Congress, but only one set of technical
amendments has been enacted to date. Public Law 102-77 (July 26,
1991) amends the Executive Level I aggregate limitation on pay to
clarify that this limitation does not apply to payments received
as a reimbursement for travel and transportation and other
expenses the employee would not have incurred if he or she had
not been assigned to duty outside the United States.
OPM will continue to work with the appropriate committees in the
Senate and House to secure enactment of the remaining technical
and conforming amendments.
PENDING REGULATIONS
- FEHB Disputed Claims Procedures Final regulations to
clarify when OPM can make a decision concerning a disputed health
benefits claim without requesting additional information. The
regulations clarify that OPM may render a decision without
requesting information beyond that supplied with the claimant's
request for reconsideration or without information from the
health plan when the health plan fails to supply information
within the regulatory timeframe. The clarification allows
earlier resolution of the decision and may ease financial
hardship for claimants. Interim regulations were published on
April 23, 1991. Final regulations were signed by the Director
August 29, 1991, and sent to OMB.
- FEHB Continuation of Coverage During a Period of
Military Furlough in Support of Operation Desert Shield OPM has
postponed until passage of related pending legislation
publication of final regulations to waive the employee share of
the health benefits premium for employees who continue their
coverage under the Federal Employees Health Benefits (FEHB)
Program while they are on military furlough (leave without pay)
because of military service in support of Operation Desert
Shield. Interim regulations waiving the employee share of health
benefit premiums for these employees have been in effect since
September 25, 1990.
5
- FEHB; Negotiations for Changes in Benefits and Rates;
Nonrenewal of Contracts OPM is planning to meet with interested
parties in December prior to issuing final regulations to clarify
the Federal Employees Health Benefits (FEHB) provisions on
benefit and rate negotiations and the nonrenewal of contracts at
the end of a contract term. Clarification is necessary to
address situations where negotiations break down and either party
decides not to renew an existing health benefits contract by
issuing a notice of termination at the end of a contract term.
- Federal Employees Health Benefits Acquisition
Regulations; Termination of Contracts OPM plans to issue final
regulations late this year to clarify which sections of the
Federal Employees Health Benefits (FEHB) law and regulations
control the termination of a contract under the FEHB Program.
The regulations cite the statutory and regulatory authorities
governing termination because of withdrawal of approval of a
health benefits plan or carrier, as well as those governing
nonrenewal of a contract at the end of the contract term. The
regulation also amends Part 1631 of title 48 of the Code of
Federal Regulations to implement section 7002 (c) of Public Law
101-508, which exempts FEHB Program carriers, underwriters, and
plan administrators, from State taxes on FEHB premiums. The new
law necessitates a clarification in OPM's implementing
regulations at 1631.205-41 stating that the charge of a State
premium tax by a carrier to the FEHB contract will no longer be
an allowable cost. Proposed regulations were published May 6,
1991. As a result of comments received, we have isolated the
premium tax portion from the regulation and are sending it
forward as a separate package. OPM plans to meet with the
commenters in December on the contract termination portion.
- Federal Employees' Group Life Insurance Acquisition
Regulation In December, OPM is scheduled to propose regulations
which describe the method by which the U.S. Office of Personnel
Management (OPM) implements and supplements the Federal
Acquisition Regulation (FAR) for the Federal Employees' Group
Life Insurance (FEGLI) Program. OPM is proposing these
regulations to identify formally in regulations the basic and
significant acquisition policies unique to the FEGLI Program.
- Direct Payment of FEHB Premiums for Civil Service
Retirement System (CSRS) and Other Annuitants Final regulations
are scheduled for issuance in November implementing Public Law
101-303 which permits Civil Service Retirement System (CSRS)
annuitants and other annuitants to pay Federal Employees Health
Benefits (FEHB) premiums directly to their retirement system
rather than through annuity withholdings if the premium of their
preferred plan exceeds the amount of their annuity. Interim
regulations were published June 6, 1991.
6
- Spousal Court Orders Affecting Retirement Benefits
OPM is scheduled to propose new rules in December governing court
orders that award retirement system benefits to an employee's
former spouse.
- Reemployed Annuitants Proposed regulations are
scheduled for publication in December to provide a consolidated
statement of the rules governing benefit provisions applicable to
reemployed annuitants under the Civil Service Retirement System
and the Federal Employees Retirement System.
- Payments to Small Estates Proposed regulations are
scheduled for publication in September to establish OPM policy to
facilitate payments of lump-sum retirement and life insurance
benefits in cases of deceased former employees whose estates are
being administered under small estate provisions of State law
that forego the need for formal appointment of an Executor to pay
amounts due the estate.
- CSRS Offset Proposed regulations governing retirement
benefits of CSRS-Offset employees (those covered by both the
Civil Service Retirement System (CSRS) and full Social Security)
are scheduled for publication in November. These regulations
complete OPM's regulatory framework applicable to this category
of social security-covered employees who retain coverage under
the CSRS.
- FERS Law Enforcement Officers, Firefighters, Air Traffic
Controllers Final regulations implementing the special FERS
provisions relating to retirement of law enforcement officers,
firefighters and air traffic controllers are scheduled for
publication in November.
- Personnel Suitability, National Security Positions, and
Personnel Investigations OPM published interim revised
regulations in April covering personnel suitability, national
security positions, and personnel investigations (5 CFR 731, 732,
and 736, respectively). Widely divergent comments were received
from a House subcommittee, Federal agencies, Federal employee
unions, public interest organizations, and individuals.
Publication of final regulations is anticipated in September.
REPORTS AND STUDIES
Classification System Research
As phase two of our effort to achieve real reform of the Federal
pay system, OPM is conducting research on the need to make
changes in the Federal Position Classification System for white
collar occupations. We announced our plans in a press release on
August 2. We will follow up with a series of briefings for
agency personnel and line managers, interested staff at OMB,
7
appropriate Senate and House staffs, the major Federal unions,
various professional associations and interest groups. Once we
have determined what classification system problems were not
resolved by passage of the Federal Employees Pay Comparability
Act, we will evaluate the acceptable alternatives with all the
stakeholders, as we did with the phase one pay system changes.
Federal Productivity Study
The U.S. Office of Personnel Management was charged by Section
535 of the Federal Employees Pay Comparability Act of 1990 (as
incorporated in Section 529 of Public Law 101-509) to "review and
report on the productivity of the Federal workforce."
This study is now underway with a November 1, 1992, reporting
date to Congress. All agency heads have been asked to provide
OPM with information on any significant studies undertaken over
the past 10 years which deal with productivity or quality of
service. These reports will be consolidated into the final
report to Congress.
In addition, OPM is in the process of contracting out a study
which will identify and analyze successful applications of
theoretical models geared to increase productivity and quality of
service in the following areas:
human resource accounting
strategic planning
budgeting and payroll cost control
work planning processes, and
customer service.
Other initiatives involve an analysis of change in the
composition of the Federal workforce, an examination of trends in
productivity, and a study of Federal Government organizations
which have achieved awards for their success in implementing
Total Quality Management programs.
Critical information will also be gained through a major
Governmentwide Survey of Federal Employees (SOFE) OPM has field
tested this survey and is preparing to administer it to a random
sample of 53,000 Federal employees nationwide in November 1991.
We anticipate that the survey will be administered every 2 years
thereafter. The major topics of inquiry are the following:
job satisfaction
pay satisfaction
reward systems
pay reform
performance management
working conditions
recruitment and retention
8
work and family issues
benefits
productivity
employee and organizational values, and
the position classification system.
Review of Nonforeign Area Cost-of-Living Allowance Program
Under section 5941 of title 5, United States Code, and Executive
Order 10,000, OPM is authorized to establish cost of living
allowances of up to 25 percent in nonforeign areas in which the
cost of living is significantly higher than the cost of living in
the Washington, DC, area. Allowances are paid in Alaska, Guam,
Hawaii, Puerto Rico, and the Virgin Islands. The allowances must
be reviewed annually.
The 1989 COLA survey, which was conducted under a new
methodology, called for substantial reduction or elimination of
most COLA rates. Although the results of the survey have not
been implemented, they were published in the Federal Register for
comment early in 1990. This resulted in nearly 7,000 letters
noting concern about the new COLA methodology, as well as
considerable congressional interest, particularly from the Alaska
and Hawaii delegations. The Senate has added a rider to its
version of the 1992 Treasury, Postal, Executive Office of the
President, and independent agencies appropriations bill that
would stop any reductions in COLA rates through December 31,
1995, and require OPM to study the COLA methodology and submit a
report to Congress proposing adjustments to the methodology.
OPM is developing (with the assistance of a contractor) and
expects to administer in the next few months a survey of COLA
recipients on their housing costs and consumer expenditure
patterns. The survey also will be administered to a random
sample of Federal employees in Washington, DC, the base area for
the cost of living comparison. The results of this survey will
be used to aid in the analysis of the current COLA methodology to
determine if changes are warranted. The survey is expected to
generate congressional interest, as well as local press coverage
in some of the allowance areas.
As part of the required annual review, OPM'S contractor will also
be surveying local retail establishments and service providers in
Washington, DC, and all of the allowance areas except Alaska.
9
MEETINGS/EVENTS
Access 2000 Symposium
On October 29, OPM, in conjunction with the Department of
Education, the Equal Employment Opportunity Commission, and the
President's Committee on Employment of People with
Disabilities, will sponsor an Access 2000 symposium at the
Washington Marriott Hotel. This major initiative is designed to
focus discussion on ways to increase participation of people
with disabilities in the mainstream of the Federal workforce,
to maintain the Government as a leader in the employment of
people with disabilities, and to carry the civil service into
the next century as a model for non-Federal employers. Federal
and private sector experts will debate issues such as
recruiting, hiring, training, and partnerships. A strategic
action plan will be developed subsequent to this symposium that
will serve as the blueprint for action in setting forth new
initiatives.
All Veterans Job Fair
OPM will co-sponsor with the U.S. Departments of Labor,
Veterans Affairs and Defense a series of five All Veterans Job
Fairs devoted to welcoming home the heroes from Operation
Desert Shield/Storm. The kick-off job fair will be September 19
and 20 at the Hyatt Regency in Arlington, Virginia. Successive
fairs will be held in Hampton, VA, Friday, November 22; San
Antonio, TX, Thursday, December 5; Atlanta, GA, Friday, January
24; and San Diego, CA, Thursday, February 6. Military
personnel separating from the service, veterans and their
spouses are welcome to attend and take advantage of employer
exhibits and career assistance and benefits services.
Health, Science and Technology Job Fair
OPM will sponsor the second of two Health, Science and
Technology job fairs at the Washington Convention Center on
December 4 and 5 (the first fair targeted specifically for
these occupations was held on June 26 and 27). Washington area
Federal departments and agency representatives will be on hand
to recruit for top quality candidates in the medical and
health, engineering, computer and other scientific fields.
AGENCY/BUREAU NEWS
Leave Bank for Federal Employee Reservists Returning from the
Persian Gulf
Since the last issues assessment report, OPM has been involved
in implementing the Governmentwide reservist leave bank
program. We extended the open season for contributions of
10
annual leave to this bank by an extra month to August 10, 1991.
As a result of this extension, agencies had until September 7,
1991, to report to OPM the total number of hours donated to the
leave bank. We are computing the amount of leave to be
received by each eligible recipient, and will report this to
the agencies so that the leave can be credited to the annual
leave accounts of individual recipients.
COURT DECISIONS/LITIGATION
LITIGATION
(Selected cases with potential impact on policies)
National Treasury Employees Union V. Newman--Special Rates
Litigation
In 1962, Congress provided for the payment of special salary
rates in certain occupations, such as those in the engineering,
medical and clerical fields. For many years this agency passed
along to special salary employees the full annual increase
granted to General Schedule (GS) employees. In 1982, OPM
amended its regulations to stop this practice, determining that
a revision in the GS rates would have no effect on special rate
schedules. The National Treasury Employees Union (NTEU) filed
suit, challenging that new regulation. The lawsuit went from
the United States District Court for the District of Columbia
to the United States Court of Appeals for the Federal Circuit
which ruled in 1989 that OPM's 1982 regulation was invalid. The
court of appeals, however, agreed with OPM that the district
court erred in requiring the full GS raise to be applied to
special rate schedules in all cases. The court of appeals
remanded the case to the district court to require appropriate
conversion rules to link GS pay increases to special rate pay
schedules.
On remand, the district court issued a decision on June 28,
1991, that appears to support OPM's position that the special
rates statute did not necessarily require that GS pay increases
go to all special salary occupations. The court stated that it
is OPM's responsibility to make determinations whether a pay
adjustment is required, taking into consideration that special
salary rates are based on the pay needed to recruit and retain
employees in specific occupations and locations. OPM has
drafted regulations to comply with the court's mandate. The
regulations, which were reviewed and approved by OMB, will be
submitted to the court for its review before publication in the
Federal Register for comment.
11
National Treasury Employees Union V. Newman--Testing Litigation
The United States District Court for the District of Columbia
recently held that OPM improperly implemented its new entry
level examining program, Administrative Careers With America
(ACWA), because it failed to follow rulemaking procedures under
the Administrative Procedure Act (APA) in advance of
implementing the program. The court stated that ACWA was a
"rule" within the meaning of the APA, and that OPM was required
to promulgate ACWA under notice and comment rulemaking. The
court allowed ACWA to continue to be used to examine applicants
for more than 100 white collar entry level jobs. OPM will
publish the required notice in the Federal Register, and
carefully review any comments submitted. The notice will also
seek comments on some technical changes being considered in the
existing ACWA program.
Federal Labor Relations Authority V. U.S. Department of the
Navy--Home Address Litigation
On August 13, 1991, the U.S. Court of Appeals for the First
Circuit, reversing a decision of the Federal Labor Relations
Authority (FLRA), held that it is unlawful for Federal agencies
to disclose the home addresses of bargaining unit employees
merely because the labor organization representing those
employees requested it. The court agreed with the Court of
Appeals for the District of Columbia Circuit that release was
prohibited by the Privacy Act, and that release could not be
obtained under the Freedom of Information Act (FOIA). The court
ruled that, in weighing the public interest in disclosure of
information in the custody of the Government against the
privacy interest of the individuals whom the information
concerned, it was precluded from taking into account "the
special public interest in collective bargaining" asserted by
the FLRA.
The court also upheld OPM's interpretation of its routine use,
which provides that home addresses may be disclosed to unions
only if adequate alternative means of communication with
bargaining unit employees do not exist. In this very
significant ruling, the court held that OPM's routine use
"is consistent with current law in the
private sector while FLRA's position is not.
As 'necessity' has always included a
consideration of the adequacy of alternatives
in the private sector, we certainly cannot
say that OPM's similar interpretation of
'necessity' under its
regulations is
unreasonable."
Similar lawsuits are pending in several circuit courts of
appeals, which have been made aware of this First Circuit
opinion.
12
Fair Labor Standards Litigation
The Department of Labor has agreed to amend its regulations to
clarify the application of a Fair Labor Standards Act (FLSA)
exemption criterion which requires employers to establish that
their employees meet a "salary basis" test before they can be
held exempt from the FLSA. The requirement, which applied to
State and local government employees, was creating a problem in
that in several pending lawsuits, arguments were being made that
the criterion should apply to Federal employees, as well. This
test has not been applied to Federal sector FLSA cases by OPM,
which has FLSA responsibility for Federal employees. Labor's
agreement to clarify the exemption requirement for certain
categories of public sector employees will be of great assistance
in the litigation of several pending Federal sector FLSA matters.
Post and Johnson V. OPM
Plaintiffs have appealed to the United States Court of Appeals
for the Federal Circuit, seeking reversal of the MSPB decision
that seasonal employees of the Internal Revenue Service who were
employed on a when-actually-employed basis are not eligible to
receive retirement service credit for periods when they were not
employed.
13
TAB A
Timeline
FEHB Task Force
Date
Event
November 1991
Presentation of options
paper to the Task Force
December 1991
Domestic Policy
Council presentation
14
TAB B
DEVELOPMENT OF PAY-FOR-PERFORMANCE SYSTEMS
FOR THE FEDERAL WORKFORCE
In early November, the two committees established to make
recommendations in this area will complete their deliberations
and make their final reports to the OPM Director. Key activities
will revolve around continued support of those committees, report
production, and report dissemination, prior to further policy
development activities to reform Federal pay-for-performance
systems.
The Pay-for-Performance Labor-Management Committee, required by
the Federal Employees Pay Comparability Act, is composed
primarily of agency representatives and Federal employee union
officials. The committee has completed its information gathering
and is formulating its report to advise the OPM Director on ways
to strengthen linkages between pay and performance for the
Federal workforce.
The Performance Management and Recognition System (PMRS) Review
Committee, statutorily required by the PMRS Amendments of 1991,
includes representatives from agencies with PMRS employees and
officials from organizations whose membership includes such
employees. This committee is considering the same general body
of knowledge as the Pay-for-Performance Labor-Management
Committee, but with a focus on managerial performance.
15
TAB C
CONTINUING IMPLEMENTATION OF
FEDERAL EMPLOYEES PAY COMPARABILITY ACT (FEPCA)
OPM completed the initial phase of implementing FEPCA by issuing
all required interim regulations by May 4, 1991. The comment
period for many of these regulations ended on July 2, 1991. We
will review comments and make revisions as needed. We also will
continue to issue guidance to agencies through the Federal
Personnel Manual on the use of these new authorities.
Additional actions to be taken in the next few months include:
O Begin monitoring agency use of new authorities and make plans
to evaluate the impact of the various features of pay reform on
the Government's competitiveness as an employer over time.
O Support the President's Pay Agent (composed of the Directors
of OPM and OMB and the Secretary of Labor) and the Federal Salary
Council in defining geographic areas for locality pay purposes
and guiding the operation of the new locality-based pay surveys
to determine adjustments in white-collar pay scales.
O Conduct a critical phase of the law enforcement occupational
study required by statute. (Section 412 of Title IV of FEPCA--
also known as the Federal Law Enforcement Pay Reform Act
(FLEPRA) --requires a report to Congress and a legislative
proposal to establish a classification and pay system, or
systems, for law enforcement officers before January 1, 1993.
The report must be submitted to OMB by November 11, 1992.
o OPM has established the Director's Advisory Committee on Law
Enforcement and Protective Occupations which will be composed of
representatives from 13 agencies and 12 employee groups. The
first meeting of the committee is scheduled for September 17,
1991. For the remainder of this calendar year, the OPM staff
task force will continue its studies and provide support to the
committee using its analyses of previous studies, current
policies and programs, and recent factfinding trips.
O Implement nationwide special pay rates and geographic
differentials in eight cities for law enforcement officers,
effective January 1992, as required by FEPCA.
O Continue our study of health care occupations to assess the
need for and develop alternative job evaluation and pay systems
that may be more appropriate for them. The study is led by OPM
with the assistance of an Interagency Steering Committee and Work
Group composed of key personnel representatives from the
Department of Veterans Affairs, the Department of Health and
16
Human Services, the Department of Defense, and the Department of
Justice. The factfinding portion of the study will be completed
by the end of September or early October after which we will meet
with an advisory group composed of representatives of key Federal
agencies, unions, and employee organizations to obtain their
viewpoints on issues raised during the factfinding portion.
SEP 16 '91 9:06 FROM PEACE CORPS MED. REL.
PAGE. 002
THE UNITED STATES PEACE CORPS
MEMORANDUM FOR EDE HOLIDAY
ASSISTANT TO THE PRESIDENT
AND SECRETARY OF THE CABINET
FROM:
LEE RAUDONIS
COMMUNICATIONS DIRECTOR
PEACE CORPS OF THE UNITED STATES
SUBJECT:
1991 Fall Issues Assessment
The following report summarizes key issues and activities at the
Peace Corps of the United States for September 15 to December 31,
1991.
I.
HIGHEST PRIORITIES -- SUMMARY LISTING
1. Restart Peace Corps program in Philippines and continue
rebuilding programs in the evacuated countries of Tunisia,
Morocco, Mauritania, Tanzania, Pakistan and Yemen.
2. Facilitate the expansion of Peace Corps' Fellows/USA Program
(Returned Volunteers being linked with a consortium of
American universities to advance their education in
conjunction with work in at-risk situations throughout the
country).
3. Continue the expansion of World Wise Schools to include all
states in the nation within five years. Link World Wise
Schools and Fellows/USA with America 2000 efforts.
4. Continue planning and discussions for new program entries
in Laos, Mozambique, Madagascar, China, Argentina and
Bangladesh.
5. Develop Peace Corps models that enable Peace Corps to
discuss entry with countries such as Mexico and Brazil.
6. Begin very quickly to explore the possibility of
establishing programs in the Baltics and Soviet Republics.
Have program started in Baltics within next few months.
7. Expand youth programs world-wide, as this is area of concern
most often mentioned by international officials.
8. Continue to expand toward the 10,000 Volunteer goal,
largely through new country entries, in effort to reach
goal by late 1990s.
1990 K STREET, NW, WASHINGTON, DC 20526
SEP 16 '91 9:07
FROM PEACE CORPS MED. REL.
PAGE. 003
II. SURVEY OF KEY ISSUES
DIRECTOR'S ACTIVITIES
Help promote smooth transition to new Peace Corps Director.
INITIATIVES AND POLICIES UNDER DEVELOPMENT
1.
In concert with others, Peace Corps is exploring different
ways volunteers might be received from countries Peace Corps
serves to do specialized work in the United States.
2.
Peace Corps is developing a capacity for the exchange of
information to its widely distributed posts through
technology, rather than personal travel.
SIGNIFICANT PROBLEM AREAS
Continued expansion of new accountability systems in order to
secure a more efficient management of the agency.
LEGISLATIVE ACTIVITIES
None planned at present.
SMALL
U.S. SMALL BUSINESS ADMINISTRATION
ATION
WASHINGTON, D.C. 20416
1953
OFFICE OF THE ADMINISTRATOR
MEMORANDUM FOR EDE HOLIDAY
ASSISTANT TO THE PRESIDENT
AND SECRETARY OF THE CABINET
FROM:
PATRICIA SAIKI
$5
ADMINISTRATOR
U.S. SMALL BUSINESS ADMINISTRATION
SUBJECT:
1991 FALL ISSUES ASSESSMENT
The following report summarizes key issues and activities at the U.S. Small Business
Administration from September 15 to December 31 1991.
I.
HIGHEST PRIORITIES -- SUMMARY LISTING
0
Finalize Administrator Saiki's strategic plan and policy priorities for the SBA.
0
Prepare for confirmation hearings for Paul Cooksey, nominated by President
Bush for the position of Deputy Administrator.
0
Modernization of the automated data processing equipment and supporting
software systems to provide cost effective, responsive, and consistent automated
capabilities throughout the agency. Exploit technology to improve the overall
management and use of agency information.
o
The Investment Advisory Council (Small Business Investment Company
program) is being established and will hold its first quarterly meeting on
September 18.
0
The first redemption of Specialized Small Business Investment Company 3%
preferred stock held by the Small Business Administration will be initiated.
This redemption was required by P.L. 101-162 and will present an opportunity
for continued capital development within the minority business community.
1
0
Implement a metric transition plan which will incorporate the requirements of
the Metric Conversion Act, as amended by P.L. 100-418.
0
Implement the newly developed National Breakout Procurement Center
Representative Team concept to maximize small business opportunities for the
contracts related to the F-22 Advanced Tactical Fighter procurement recently
awarded by the Air force to the Lockheed Corporation in team with Boeing and
General Dynamics, at an estimated cost of $60-$109 billion dollars.
0
Complete the process of organizing and staffing the Office of the Chief
Financial Officer.
0
SBA will work with the Department of Education to facilitate the America 2000
initiative.
II.
ADMINISTRATOR'S ACTIVITIES
0
The Administrator will continue to meet with Cabinet members, members of
Congress, and other officials to explore opportunities for joint efforts on behalf
of the small business community.
0
September 24-27. Administrator Saiki will be attending events celebrating the
SBA/Commerce joint-sponsored Minority Enterprise Development Week (MED
Week), including a ceremony to recognize MED Week winners in the Rose
Garden with President Bush and Secretary Mosbacher. The Administrator will
be speaking about opportunities for minority entrepreneurs and how through the
America 2000 initiative small businesses can be a vehicle to increase educational
opportunities at the kickoff luncheon and congressional reception.
0
October 7-11. Administrator Saiki will participate in a fact-finding mission to
Brussels. The purpose of the mission is to brief top national trade association
executives on the effects of EC '92 on international trade initiatives.
o
Administrator Saiki plans to expand SBA's outreach efforts to the trade
associations and other organizations crucial to the effective- ness of SBA's
programs within the small business community.
o
November 17-20. The Administrator will attend the 12th National Legislative
Conference on Small Business to be held in Kansas City.
0
Administrator Saiki will continue to support the President's National Export
Initiative by personally participating in several export seminars conducted by
the Department of Commerce.
2
III. LEGISLATIVE ISSUES
0
Paul H. Cooksey, recently nominated by President Bush to be SBA's Deputy
Administrator, is currently being briefed by senior SBA officials on the Agency's
programs. Additionally, Mr. Cooksey is making courtesy calls to senior staff
members of the Senate Small Business Committee. His nomination requires
Senate confirmation. Administrator Saiki anticipates the White House will soon
nominate a candidate for the position of Chief Counsel of Advocacy.
0
A provision in the Defense Authorization Bill for FY 1992 & 1993 which
recently passed in the Senate will adversely affect SBA's Certificate of
Competency (COC) program. If enacted, this amendment would reduce Federal
contract awards to small businesses by permitting procuring agencies to delay
or entirely avoid COC procedures. These procedures now provide a prompt
appeal avenue for small businesses to be certified as capable of performing
Federal contracts.
Historically, the COC program has enabled small businesses to win
more
than 10,000 contracts valued at over $3.7 billion which they otherwise would not
have received, at $460 million in savings to taxpayers. The proposed
amendments would weaken the current COC appeal process that is now
available to small businesses and severely reduce their ability to compete for
significant Federal procurement. Administrator Saiki is contacting
Congressional conferees and Small Business Committee members on this
legislation to make them aware of the problem it presents and to urge that this
amendment be deleted from the final bill.
0
Early this month the Agency submitted its FY 1993 budget request. In line
with the President's firm support of the small business community and SBA,
and with an eye toward fiscal restraint and continued deficits, SBA requested
$687 million and 5,378 full-time equivalents (FTE). While this request exceeds
OMB's recommended levels, it remains 15.3 percent below the FY 1992 Senate
mark for SBA. This budget seeks to balance the President's spending reduction
goals with our mandate to make SBA programs more effective and efficient.
IV.
INITIATIVES AND POLICIES UNDER DEVELOPMENT
0
The Office of Advisory Councils will design and launch a new communication
project to respond to the needs of national and regional/district advisory
councils. Council members and district directors have frequently made the
legitimate complaint that there is no system for responding to their respective
council recommendations. Our communication project is designed to respond to
3
this problem and to develop a better understanding in the private sector about
SBA programs and the Administrator's initiatives. The goal is to urge the
private sector to promote SBA programs and become better informed advocates
of small business.
0
Establishing the Investment Advisory Council will provide a forum to discuss
issues that are important to the SBIC Program. The Council will have 17
private sector members representing the SBIC industry, the venture capital
profession, the capital markets, small business, and other sectors.
0
Valuation of securities is at the core of assessing the Agency's position as a
creditor in the SBIC Program. Revised valuation guidelines are being developed
that will be used by SBICs in valuing their loans and investments. Also,
regulatory changes will be made regarding accounting policies SBICs are to
follow in recognizing realized losses.
o
Implement the monitoring and inspection phase of the Natural Resource
Development Program (tree planting grants to states). First-time grants
totalling $14.5 million are now being processed and will require at least one
inspection tour per state to evaluate program compliance and performance.
This activity will cover Fall 1991 and Spring 1992 planting seasons. Initial
grants will expire in September of 1992.
o
The Agency will implement an automated disaster loan control system. This
project, national in scope, has been in development for several years. It
represents a major advance in management information and decision-making
within the disaster assistance program, and should substantially improve
program delivery, accuracy and responsiveness in high volume disaster events,
e.g., Hurricane Hugo and the Loma Prieta Earthquake.
o
Administrator Saiki has initiated a coordinated national approach to the
planning and development of SBA's publications and audio-visual materials.
A Publications Review Board, comprised of field and central office staff has
assessed information needs among SBA's clients and identified national
priorities for publications and audio-visual materials. A master plan for the
development of those materials will be produced this fall. This initiative will
improve quality, consistency and cost-effectiveness in the Agency's public
communications materials.
0
The Chief Financial Officer will continue to develop a basic management
information system to be used by senior management to support the
Administrator's strategic policy goals. The CFO will also continue to develop a
viable, PC-based, management information system to assist line managers track
4
09-17-91 03:02PM FROM SBA ADMINISTRATOR
TO WH REPORT
P02
resource utilization and monitor progress in goal accomplishment.
0
Metric Transition Training. Business Development will develop and coordinate
with the Office of Advocacy, information seminars on the impact of the Metric
Legislation on small business and what small businesses need to do to respond
to the metric requirements which apply to Federal government procurement.
This training is part of SBA's approved metric plan.
0
Implement the Indian Employees' Surrogate Support Program (IESSP). This
program is an outreach and recruitment effort dedicated to attracting and
retaining Native American employees. The Agency will be assisted in
administering this program by Native American organizations whose
participation is solely voluntary. These IESSP volunteers will be matched with
new SBA Indian employees to assist them in adjusting to their new
environment.
0
Coordination of the Agency-wide and Administration-wide effort to promote a
Drug-Free Workplace. The Office of Advocacy has begun working with SBA
offices, the Office of National Drug Control Policy and the Department of Labor
on information compilation and dissemination.
V.
REGULATIONS
o
Since 1987, the Agency has been prohibited by Congress from expending any
appropriated funds to adopt, implement, or enforce any rules or regulations for
the Small Business Development Centers Program (SBDC), or to impose any
restrictions, conditions or limitations on the program, unless such restrictions,
conditions or limitations were in effect on October 1, 1987.
The SBDC Program is currently funded at $55.75 million. There are 57 Lead-
Centers, one or more located in every state, plus the District of Columbia,
Puerto Rico and the Virgin Islands, with a network of more than 700 service
locations. We have recommended to the House and Senate Small Business
Committees that this prohibition be removed and that SBA be authorized to
develop rules and regulations.
0
SBA's Office of Advocacy will submit regulatory comments on behalf of small
business on the following topics: underground storage tanks, the spotted owl,
access fees charged to long distance carriers in the telecommunications industry,
and the FCC price cap order.
5
VI.
SIGNIFICANT PROBLEM AREAS
0
SBIC Receiverships and Recoveries: The number of SBIC receiverships is
continuing to increase, and we anticipate receiving payouts as SBICs are closed.
The Office of General Counsel has had a record year with respect to settlements
and judgments. In FY 1991 through July 31, SBA received direct payments on
its SBIC liquidations of over $21 million and recovered approximately $3.5
million, or an average of $350,000 per month in its receivership operations.
We anticipate at least five new receiverships before calendar year-end with
multi-million dollar payovers to SBA. We will continue to pursue appropriate
settlements or workout agreements with SBICs as they are liquidated.
0
Reauthorization of co-sponsorship legislation is a major issue facing the SBA.
The authority for SBA to enter co-sponsorships expired on March 31, 1991.
SBA's co-sponsorship authority allows the Agency to utilize private sector funds
for small business conferences and publications. Co-sponsorships have played a
major role in funding SBA's National Small Business Week, export conferences,
procurement conferences, legislative conferences and for publication of
numerous resource guides for small business owners. Last year, co-sponsoring
organizations contributed seven dollars for each one dollar SBA expended for
these joint activities.
VII. REPORTS OR STUDIES
o
The Senate-sponsored Werner/Holloway SBIC report identified a number of
issues that must be addressed. Some will result in policy changes and others
may result in new statutory proposals. Many of these issues will be coming to
fruition during this period.
o
At SBA's request, the National Academy of Public Administration (NAPA) made
a study of the statutorily mandated redemption of the SBIC 3% preferred stock
held by SBA. The NAPA report will be used as a basis for implementing a buy
back program to be initiated during this period.
0
Publish an Annual Report to the President and the Congress on the Natural
Resources Development (tree planting) Program's accomplishments as required
by P.L. 101-515.
0
The General Accounting Office is conducting a review of federal disaster
assistance programs at the request of the Banking, Finance and Urban Affairs
Committee of the U.S. House of Representatives. Our Office of Portfolio
Management is working with GAO in testing the accuracy of information
contained in SBA's disaster assistance database through comparison with
6
documents in loan case files maintained by the Agency's field offices.
A sampling of up to 400 loans will be used in the study.
0
Price Waterhouse continues its evaluation of the 7(a) Business Loan program.
By the end of September, they will have contacted approximately 2,000 small
businesses (half of which received SBA loan guarantees in 1985). Price
Waterhouse will analyze the data and prepare the report this fall and we expect
delivery of a final report in early winter. This report will be the most
comprehensive evaluation to date of the 7(a) program, SBA's largest guaranty
loan program.
0
The Administrator's first annual Report on the Minority Small Business and
Capital Ownership Development (MSB&COD) Program as required by the
Business Opportunity Development Reform Act of 1988 will be forwarded to
Congress in the near future. The report will contain a number of recommended
statutory changes intended to improve the efficiency of the MSB&COD program.
VIII. MEETINGS OR EVENTS
o
SBA's Office of Economic Development and Rural Affairs is representing the
Agency on the Economic Policy Council/Working Group on Rural Development,
its Monday Management Group, and various committees of the Group. This
includes staff support as monitor for one of the eight state Rural Development
Councils for the Presidential Initiative on Rural Development.
0
September 22-28. SBA and the Minority Business Development Agency, U.S.
Department of Commerce, will cosponsor Minority Enterprise Development
Week. The theme for this year's event is "Building A Stronger America
Through Minority Business Development". MED WEEK has been established
by Presidential proclamation annually since 1983. This year's MED Week
activities will include a Procurement Trade Fair with 209 minority vendor
exhibitors. The marketplace provides an opportunity for minority vendors to
market with major corporations and Federal agencies. Also scheduled are a
Congressional reception, a corporate awards breakfast, a youth awareness day,
and an awards banquet. In addition to the national celebration in Washington,
DC, many SBA field offices will sponsor local MED Week activities and
recognize outstanding individuals and businesses.
0
September 29-October 3. SBA will be represented at the International Small
Business Congress (ISBC) Conference in Nashville, TN. Over fifty countries
will be sending delegates to the conference.
7
o
October 23-25. The National Association of Government Guaranteed Lenders
will hold its semi-annual meeting in St. Louis. SBA Financial Assistance Senior
officials are expected to participate in various discussions regarding private
sector/government finance issues.
o
Continue participation and follow-on efforts related to the President's National
Export Initiative (NEI) seminars. The Agency will continue its active, high-
level support for the remainder of Fall NEI seminars. In addition, SBA's Office
of International Trade will continue its follow-on efforts in the form of "next
step" workshops for those small businesses that have attended the NEI
seminars. We have already completed four of these follow-on events in Atlanta,
Boston, Chicago and Portland, focusing on doing business with Pacific Rim
nations. SBA will hold a fifth and final Pacific Rim seminar in conjunction
with the Department of Commerce in San Diego, CA on October 4.
o
October 24-30. SBA and the Food and Dairy Industries Supply Association
have signed an agreement to co-sponsor EXPORT EXPO 91. This event will
offer U.S. small businesses the chance to exhibit their products and services and
to participate in how-to-export workshops. This is a nationally supported event
and is being run from the Chicago regional office with strong SBA Central staff
support. This is a follow-on event to the successful EXPORT EXPO 90 held in
Seattle, Washington in March 1990.
0
November 19-20. The Office of Minority Small Business and Capital Ownership
Development (MSB&COD) will co-sponsor a series of conferences on an
Electronic Communication Interchange (ECI) which will include data relating to
procurement opportunities up to $25,000 available at the Office of Management
and Budget, DOD's Defense Logistics Agency, SBA and other Federal agencies.
The Aerospace Industries Association (AIA) will co-sponsor the first conference
to be held in Dallas, TX.
0
November 17-20. The 12th National Legislative Conference on Small Business
Issues will be held in Kansas City, MO. SBA's Office of Advocacy anticipates
approximately 350-400 attendees, including many state and local officials. Final
preparations are being completed for workshop panelists & moderators and
related issue papers.
8
IX.
AGENCY NEWS
0
Southern Bell is planning to use SBA's Procurement Automated Source System
(PASS) as its small business database and to tie its 300 buyers into the system
by connecting their computer network directly to PASS.
0
SBA is working closely with DOD and OMB/OFPP to develop an Electronic
Commerce capability within the small business community. This will include
use of Electronic Data Interchange (EDI) technology to link Federal buyers and
suppliers in a paperless process for the procurement of goods and services
valued at $25,000 or less.
0
SBA will launch the second wave of its public service campaign for nationwide
broadcast on radio and television. President Bush will appear in this second
spot, which is 30 seconds in length and features another successful small
business that was helped by SBA. The PSA will be distributed to 600 television
and 1700 radio stations in late October-early November.
X.
OTHER
0
Business Development is working on Memoranda of Understanding with the
Department of Housing and Urban Development (HUD), DOT's Urban Mass
Transit Administration (UMTA), the Environmental Protection Agency (EPA)
and General Services Administration (GSA). These MOUs are part of the
President's Economic Empowerment Initiative and focus on integration of
services across Federal agencies. The MOU's would be co-signed by
Administrator Saiki and (respectively) the Secretaries of HUD and DOT, and
the EPA and GSA Administrators.
9
United States
Office of the Director
Information
Agency
Washington, D.C. 20547
September 9, 1991
USIA
MEMORANDUM FOR:
Ms. Ede Holiday
Assistant to the President
and Secretary of the Cabinet
The White House
FROM:
Henry E. Catto
Director
ThiR
SUBJECT:
1991 Fall Issues Assessment
The following report summarizes key issues and activities at
the United States Information Agency (USIA) for September 15 to
December 31, 1991.
I. HIGHEST PRIORITIES -- SUMMARY LISTING
1. Agency-wide efforts in support of U.S. policy toward
the USSR in response to recent developments.
2. Support for the Mid-East peace process and U.S. policy
in the Gulf.
3. Expanded focus on democracy building, the promotion of
market economies and human rights worldwide,
particularly in the USSR, Eastern Europe and Africa.
4. Support for U.S. economic and trade policies,
particularly U.S. objectives in the Uruguay Round and
the North American Free Trade Agreement.
5. USIA and the President's Task Force on International
Broadcasting
6. International cooperation in anti-drug efforts.
7. The President's East Asia Trip.
8. Support for U.S. environmental policies.
9. Seville Expo 92/Genoa Expo 92.
II. SURVEY OF KEY ISSUES
The following survey, while not inclusive, outlines USIA
programs and activities which will respond to the issues of
highest priority.
- 2 -
U.S. POLICY TOWARD EVENTS IN THE USSR
The revolutionary events in the Soviet Union in the aftermath
of the failed coup attempt have potentially enormous
significance for USIA programs. An Agency Task Force is being
formed, under the chairmanship of the European Office, to
review their implications. For the moment, we have not yet
decided what changes would be appropriate in Agency policies or
programs in the USSR or in the constituent republics.
USIS Moscow reports that many Soviet contacts with whom we have
worked to build and maintain bilateral programs are out of
touch, given the state of flux in ministries and other Soviet
institutions. It will take time to determine who we are able
to deal with before we decide how to proceed. So far, no
long-term USIA projects have been directly affected, although
travel by some officials and exchange grantees has been
delayed. Deputy Director Kopp will deliver a major address to
the CSCE meeting in Moscow on September 20.
Programs which could be affected include the cultural,
educational and citizen exchanges with the USSR which have
expanded dramatically in the last few years, in addition to
dozens of Sister City and direct university linkages now in
effect or planned. The Fulbright university lecturer exchange
has also grown considerably, as has the number of Soviet
participants in USIA's International Visitor Programs.
Hundreds of secondary school students, undergraduates and other
youths travel each way under the Samantha Smith Memorial Youth
Exchange Program, administered by USIA. Also in question are
current contracts with Soviet publishers for the translation
and publication of key works of U.S. political and social
thought, as well as planned seminars with Soviet institutions
on such topics as the political process, rule of law,
broadcasting and business management.
We are hopeful that the new developments will bring even
greater programming opportunities. Plans to open an American
cultural center in Moscow, now held up by Congress, could be
the beneficiary of improved U.S.-Soviet relations. In the
Baltics, USIA has ongoing exchanges and information programs
and plans to open new posts in each of these countries. A
Branch PAO is en route to the Ukrainian capital of Kiev to
establish a USIS post in the new Consulate General there. We
will be developing contingency plans for expanded outreach in
the other republics as well, consistent with evolving USG
policy.
- 3 -
MIDDLE EAST PEACE PROCESS AND U.S. POLICY IN THE GULF
USIA has established a post-Gulf War task force that deals with
Iraqi disinformation and non-compliance with U.N. resolutions,
as well as misperceptions that arise concerning the U.S. role
in the region. USIA officers regularly contribute to
inter-agency meetings on the Gulf and other parts of the region
to coordinate support for USG policy goals in the post-war
period.
The Voice of America is exploring options for continuing on a
permanent basis the widely followed medium-wave broadcasts to
the countries of the Gulf. These broadcasts were started
during the crisis months prior to the Gulf War. The Voice will
continue its extensive coverage of Mid-East developments and
maintain its editorial focus on the area.
USIS Kuwait is back in full operation with two USIA Foreign
Service Officers resident. In addition to facilitating a
continued flow of foreign journalists, they have launched a
series of programs that will reinforce the U.S. commitment to
democratic pluralism and the re-establishment of a free market
economy while helping to rebuild Kuwait's war-crippled
educational and media institutions.
USIA will also carefully monitor the situation in Soviet
Central Asia, where Islamic-majority republics may begin to
play an independent role in world and regional affairs.
This fall, all Agency programming and media elements will be
mobilized to support the Administration's initiative for a
Mid-East peace conference.
DEMOCRACY BUILDING, HUMAN RIGHTS AND THE PROMOTION OF
FREE MARKET ECONOMIES
During the coming months, USIA initiatives in democracy
building and the promotion of market economies will focus
primarily on Central and Eastern Europe, the Soviet Union and
Africa. With respect to human rights, our main focus will be
on the Moscow CSCE Conference on the Human Dimension
(September 10-October 4). While no other major conferences or
events are scheduled before the end of the year, we will take
advantage of targets of opportunity whenever they occur.
- 4 -
Central and Eastern Europe
Through the European Area Office, USIA focuses on programs to
strengthen democratic institutions in Central and Eastern
Europe. FY 91 programs include: 1) Management Training and
Market Economics Education; 2) English Teaching; 3) Citizens'
Networking; 4) Educational Reform; 5) Books for Democracy; 6)
Independent Media Training; 7) Rule of Law; 8) Parliamentary
Training.
Fall academic programs include lecturers in market economics,
curriculum reform and media; fellowships for Central and East
European young professional and academics in management and
media; placement of English Teaching Fellows in teacher
training institutes; grants to U.S. universities and
educational institutions to carry out programs in economics,
business and civic education; placement of Library Fellows at
local libraries and institutes. In addition, major seminars
and workshops in rule of law and media are underway and several
tons of books, periodicals and library materials will be
distributed to key institutions in the region.
The Soviet Union
Events in the Soviet Union are moving much too rapidly to
provide definitive proposals at this point. However, it is
clear that the economic and political structures which
ultimately emerge will face formidable problems in making the
transition from the current system to any new system.
Accordingly, the problems of transition will be a major focus
of USIA efforts.
While programs to assist those currently charged with
governmental responsibilities will proceed, USIA will also
consider focusing its efforts on a slightly younger
generation. For example, programs should address the creation
of law school curricula and training for young lawyers, or the
creation of economic and business school programs. Moreover,
the Agency will be examining possible support to emerging
political parties, through the organization of seminars on the
rule of law as well as more pragmatic programs in the
organization of campaigns, responsibilities of office holders,
constituent relations, and intergovernmental processes.
- 5 -
Africa
With funding provided by AID, USIA is embarking on two
initiatives to promote long-term prospects for democratic
society in South Africa and Nigeria during 1991 and 1992. In
South Africa, one million dollars will be used for programs on
conflict resolution and negotiation for new actors in an open
political process. The inter-Agency transfer will provide
practical "hands-on" experience, information, techniques and
skills needed by participants, particularly from
disenfranchised communities, in the discussions on the new
constitution, preparations for multi-party negotiations and the
negotiations themselves. In Nigeria, a three million dollar
"Democracy Initiative" will fund linkages between Nigerian
civic organizations and their American counterparts in the
fields of law, business, public policy, journalism, and
political participation.
ECONOMIC AND TRADE POLICIES
Successful completion of the Uruguay Round of multilateral
trade negotiations is the number one trade priority of the
Administration. Since the beginning of the Round in 1986, USIA
has devoted considerable resources to inform and persuade
foreign publics of the benefits of trade liberalization. Most
recently, during the period between extension of the fast track
legislation and the London Summit (May 31 - July 15), USIA did
extensive programming on the Uruguay Round including Worldnets.
Foreign Press Center briefings and Wireless File and VOA
interviews with USTR Hills, other senior USTR officials and
Agriculture Secretary Madigan. The negotiations are slated to
resume in earnest in mid-September at which time USIA will
again resume high profile programming.
Working in close cooperation with USTR, USIA has developed a
public affairs action plan, in support of USG objectives for
the Uruguay Round. This includes: 1) targetting key countries
on specific trade issues; 2) extensive programming of key USTR
and Agriculture Department officials as well as business,
academic and other private sector figures; 3) continued Agency
coverage of important events, press conferences, statements,
interviews, etc. by USTR/USDA spokespersons; and 4) periodic
issuance of public affairs guidances and issues analyses.
- 6 -
On June 12, the United States began negotiations with Mexico
and Canada toward a North American Free Trade Agreement
(NAFTA). The rest of Latin America is watching NAFTA closely
as a "test case" of how a free trade agreement will function,
and several nations have called on the U.S. to begin parallel
negotiations.
USIA's principal audience for NAFTA is in Mexico, where free
trade and investment engenders questioning, fears and
nationalist sentiment. USIS Mexico has made NAFTA a top public
affairs priority, making use of regular conferences, speakers
and educational travel projects to boost understanding of the
benefits of free trade and of implications for environmental,
energy and other policies.
U.S. Trade Representative Carla Hills addressed groups in
Mexico and Canada via Worldnet, and other USTR officials have
appeared frequently under USIA auspices. The Wireless File
will continue to carry speeches, byliners and fact sheets on
NAFTA and related trade subjects. VOA's extensive coverage of
NAFTA and editorials explaining USG policy will also continue.
Worldnets, Foreign Press Center briefings, Amparts and other
programming will be scheduled as appropriate.
USIA AND THE PRESIDENT'S TASK FORCE
ON INTERNATIONAL BROADCASTING
Last year the USG undertook a study of all USG international
broadcasting in recognition of the decline of the cold war and
innovations in broadcasting technology. An initial NSC
directive recommended the creation of two bodies to review USG
broadcasting and set guidelines for their review. The first, a
policy coordinating committee, was created under the State
Department to conduct a strategic review of broadcasting
priorities. A bipartisan task force was also established under
John Hughes to make recommendations within six months to the
President on consolidating USG broadcasting, use of new
technologies and cooperation with private sector broadcasters.
Task force recommendations are due in November.
USIA has been actively involved from the beginning in this
study of broadcasting, as a member of the Policy Coordinating
Committee reviewing USIA and BIB broadcasting and collaborating
with the task force throughout its review.
- 7 -
SUPPORT FOR INTERNATIONAL ANTI-DRUG EFFORTS
USIA will continue to take the lead in providing information to
overseas audiences as called for in the international National
Drug Control Strategy. Our emphasis will be on U.S.
willingness to share our anti-drug expertise with other
nations. We also will demonstrate the progress we are making
in reducing domestic drug abuse and the international threat
posed by the drug trade.
The Agency will begin to focus more attention on the long-range
social, environmental and economic damage caused by cocaine
production and trafficking, as well as intensify programming on
money laundering.
Our USIA activities will continue to be directed at the
producing countries as well as the potential source and transit
countries in Latin America, Europe and Asia. In particular,
the Agency will increase programming to Latin American
countries most at risk, such as Brazil, Argentina and
Venezuela. We also will expand our activities in Europe to
bolster public awareness of the continuing danger of heroin and
the growing threat of cocaine. Since the disintegration of the
Soviet empire may result in new opportunities for international
drug traffickers, we will try to increase our activities there
too.
USIA's office of research will continue to conduct attitudinal
surveys in key countries to aid in the development and
implementation of effective anti-drug strategies. The Agency
Drug Unit will continue its primary effort in the Andean
nations to help build the political will necessary to fight the
powerful drug cartels.
Given the expected lengthy trial on drug trafficking
ex-Panamanian dictator Manuel Noriega, the Policy Guidance
Staff, working with AR, will provide guidance to posts on
developments. The U.S. Department of Justice wants to limit
comments as much as possible. The International Narcotics
Information Network (ININ) will be improved, making it a
primary source of worldwide information.
Other activities include the continuation of the VOA Drug
Workshop, participation in the September Montreal World Drug
Conference, a series of publications and videos on various drug
topics, and plans for a European conference.
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THE PRESIDENT'S EAST ASIA TRIP
Events in the Soviet Union, continued tension with China over
human rights, still-unresolved (though diminished) trade
problems with Japan and Australia, the North-South Korea
impasse and the prospect of restored relations with Vietnam and
Cambodia will be issues the President will undoubtedly deal
with during his visits late this fall to Japan, Korea,
Australia and possibly one Southeast Asian country. His
Pacific journey will end at Pearl Harbor, 50 years after
Japan's attack.
A major theme of the trip will be strengthening the U.S.-Japan
relationship, and repairing public attitudes in each country
toward the other.
The nations of East Asia want the U.S. security shield to
remain in the region; but at the same time, they are concerned
that a "unipolar world" could mean "Pax Americana" at a time
when these same nations are becoming significant economic
successes and are gaining national self-confidence.
The challenge will be to adapt existing security arrangements
in the Pacific to reflect remaining U.S. security interests and
the need for continued support from countries that now are
feeling their oats and are focusing more on trade and
development than on security threats from any quarter.
USIA field programs and media will be giving top priority this
fall and beyond to reporting changing Asian attitudes and
fashioning programs and media messages that clarify the new
role the U.S. is preparing to play in the Pacific, as it is
articulated by the President.
THE ENVIRONMENT
While the oil spill into the Gulf has not resulted in as much
environmental damage as predicted earlier in the year, the
fragile state of the ecology and threat to environment from
both deliberate and unintentional human sources still remains.
The U.S. is a world leader in environmental protection. Yet,
our environmental track record continues not to be well
understood abroad and deserves greater public emphasis.
USIA programs to counter this anomaly include:
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Mid-November: USIA's exhibit, "Environmental Action in
America," moves to Sofia, Bulgaria. The exhibit depicts
American efforts to deal with air, land and water pollution,
and the interrelated issues of economic vitality and
environmental protection. This second stop in Eastern Europe
is made possible with the cooperation and financial support of
the Environmental Protection Agency.
November 19-21: There will be a conference, "Building a Shared
Vision for Environmental Education," sponsored by EPA in
cooperation with the Federal Task Force on Environmental
Education. USIA is working with the Conference organizers to
assure that international environmental education concerns are
addressed and that the substance of the Conference proceedings
are disseminated abroad.
USIA has assigned a senior Foreign Service Officer to be public
affairs advisor to the U.S. Delegation for the United Nations
Conference on Environment and Development (UNCED) scheduled for
June 1992. It has also established an UNCED Task Force to
mobilize all USIA elements in support of the Administration's
environmental policies.
The 1991 London G-7 Summit pledges concerning environmental
issues (many of which are focused around UNCED) will be
reflected in Agency program and media activity during the
coming months.
SEVILLE EXPO 92/GENOA EXPO 92
USIA is developing the American presence at two major
international expositions marking the Columbus Quincentennial.
Both involve securing private sector matching funds to
implement U.S. government funding.
At the Seville Universal Exposition, which runs from April 20
to October 12, 1992, USIA is constructing a 40,000 sq. ft.
pavilion that will house exhibits, a 70 mm film, performing
arts stage and concessions. The featured exhibit of the Bill
of Rights is part of USIA's expanded focus on democracy
building and human rights. The 13 million dollar federal
allocation has been matched as of August 31, 1991 by three
million in cash and over 20 million in kind.
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At the Genoa Expo, which runs from May 15 to August 15, USIA is
presenting a 5,000 sq. ft. exhibit on the maritime cultures of
the Chesapeake Bay. This exhibit will provide support for U.S.
environmental policies. A federal allocation of 1.5 million
dollars has been matched to date by private sector support of
over 1 million in cash and in kind.
DIRECTOR'S ACTIVITIES
Ambassador Catto will be traveling to Asia and to Europe this
fall, as well as addressing several important fora.
The Ambassador will travel to Japan, Hong Kong, Thailand,
Singapore and Malaysia from September 22 to October 8. He will
visit Germany, Hungary and Czechoslovakia October 21-November 1.
Among the confirmed speeches the Director will deliver this
fall are the Hans Wallenberg Lecture on October 24 at the Aspen
Institute in Berlin and the Iden Lecture at the Georgetown
School of the Foreign Service on November 15.