Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Scholar Source Context
Document identity
localId
415892667
label
[Miscellaneous Background]
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
415892667
contentType
document
title
[Miscellaneous Background]
citationUrl
identifierLocal
13896-003
collections
Records of the White House Office of Speechwriting (George H. W. Bush Administration)
Tony Snow Subject Files
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
415892667
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
41f8c1b126096375
ocrText
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:
13896
Folder ID Number:
13896-003
Folder Title:
[Miscellaneous Background]
Stack:
Row:
Section:
Shelf:
Position:
G
18
29
2
4
Refense
approx.
- VB% for 1990
1.3%
B.O.
B,A,
293.8 $10B from Reagan it 305.6 2%
- 2.6.
- 1.4.
6.3B.
0%
I
COLORD
289,8
3.7
295.6
5/5
4/28
(CHARITY DINNER)
5/5
4/28
PARKS & REC.
5/13
ALCORN COMMENCEMENT
K
13 724
5/13
MISS. ST. COMMENCE.
5/17
5/10
RETAIL FEDERATION
5/21
5/14
B.U. COMMENCEMENT K
K
5/24
COAST GUARD COMMENCE.
6/14
6/7
PRESIDENT'S DINNER
DAVIS
6/15
6/9
VERY SPECIAL ARTS
LANGE
Jun2 29, 1990
On the one side lofty abstractions. An American ideal.
Enlisted to defend. The undeforsible.
You know, it's a funny thing. Some of the people who've
waged the loudest defense of this filth can't bring themselves to
describe what it is they're defending. You hear a lot about the
abstractions -- but you don't see the picture, hear the
lyrics
We all know why. And I'm not going to do that now. But in
the last little while, I've made an effort to see these things,
listen -- as I know some of you parents out there have done. /
It's been an eye-opener. Some of the stuff is more than vulgar.
The music: The filthy language -- the casual treatment of
violence -- the degrading treatment of women -- the ignorant race
hate. // And the so-called art: Christ on the cross submerged
in a jar of urine. Depictions of sexual behavior that are so
patently obscene they can't be printed in a newspaper or shown on
television -- passed off as art.
It's important to know what I mean
Not all art -- not
all music -- has to have a message, some positive social impact.
The last thing we want is
And we know it's the nature of
art to question, to make us think, to ask us to look at things
differently. But -- just ask any American taxpayer -- it's too
much to ask that we finance with public funds art that insults,
set omsebes ag as moral asbiter
art that degrades -- art that attacks the fundamental values that
hold this nation together
So on the one side it's an abstraction -- on the other side,
it's our kids.
It's not any easy problem -- and I don't have a snap answer.
But it just seems to me that we ought to be able to find a way to
protect the sacred principle of freedom of speech -- and to
preserve our kids, and our society, against an assault on the
moral values. Against the decency that makes democracy work
When they grow up. Yes, we want our kids to think for
themselves. Make up their own minds. / But we also want them
to have a sense of good and bad. Of the dignity of every
individual. of the higher things that make life what it is --
and give this great nation of ours
ISSUES AND
FOUNDATION
Citizens for a
ANSWERS
Sound Economy
Foundation
470 L'Enfant Plaza, SW
East Building #7112
Washington, D.C. 20024
(202) 488-8200
June 13, 1990
FREE TRADE WITH MEXICO:
ANOTHER STEP IN THE RIGHT DIRECTION
by Angela Logomasini
Policy Analyst
Congress is currently considering proposals that could
mean lower prices for American consumers and additional export
opportunities for American businessmen. These proposals, which
seek to advance free trade with Mexico, have been introduced in
the House of Representatives by Reps. Bill Richardson (D-NM)
and Jim Kolbe (R-AZ). Both proposals urge the president to
begin negotiations with Mexico to establish an agreement that
would liberalize trade and investment laws between the United
States and Mexico.
Rep. Richardson's bill, H.R. 1360, recommends that the
president establish a free trade and co-production agreement.
This agreement would designate an area in which the United
States and Mexico would pool their resources in joint
enterprises. The materials imported for production, as well as
the finished products, could be traded between the two nations
duty free. Such an agreement would work to expand exports for
both nations by promoting an efficient use of resources.
The agreement which Rep. Kolbe suggests in his bill, H.R.
59, would be similar to the free trade agreements the United
States already enjoys with Israel and Canada. Under such a
free trade agreement, all tariffs and other trade barriers
between the United States and Mexico would be phased out over a
specified period of time. Also, investment laws would be
liberalized to promote cross-border investment opportunities
for both Americans and Mexicans.
The U.S.-Canada Free Trade Agreement illustrates the
positive results of this type of agreement. That agreement
appears to have boosted the volume of trade between the United
States and Canada. According to the U.S. Department of
Commerce, trade between the two countries during the first six
months of 1988 amounted to $78 billion. This number grew to
$87 billion during the same period in 1989, the first year
after implementation of the agreement.
Both Rep. Richardson's and Rep. Kolbe's proposals would
build upon an already extensive trade relationship. Mexico is
the United States' third largest trading partner, behind only
Canada and Japan. Trade between the United States and Mexico
has been growing, particularly because Mexico has worked to
liberalize many of its trade and foreign investment laws. In
1989 alone, U.S. exports to Mexico grew by 21 percent to $25
billion, while Mexico's exports to the United States grew by
15.5 percent to $27.2 billion. Other evidence of the strong
relationship between the two countries includes the fact that
U.S. businesses provide approximately 65 percent of all foreign
direct investment in Mexico. And the United States is Mexico's
largest export market, absorbing more than 80 percent of
Mexico's industrial exports.
Liberalized trade would mean that U.S. and Mexican
exporters would no longer face significant hurdles to succeed
in the other country's market. For example, a free trade
agreement would eliminate Mexican import licensing requirements
that currently apply to 70 percent of U.S. agricultural
products. As a result, U.S. farmers could increase their
exports to Mexico, while Mexican consumers would benefit by
paying lower prices.
Mexican consumers won't be the only ones enjoying lower
prices. A free trade agreement will mean lower prices for
Americans as well. Because of high U.S. tariffs used to
protect American textile manufacturers, Americans currently pay
a high price for Mexican textiles, particularly clothing. Some
of these tariffs reach as high as 45 to 50 percent. American
consumers could profit significantly from an agreement that
would eliminate these tariffs, while Mexican exporters would
gain new opportunities to sell their products in the United
States.
Free trade with the United States could help spur Mexico
toward prosperity. After seven years of restrictive policies,
excessive borrowing, and economic stagnation, Mexico has begun
to liberalize its markets to promote economic growth. Some
progress has been made towards recovery. Its economic growth,
as a percent of gross domestic product, is up from 1.1 percent
in 1988 to 3 percent in 1989, after adjusting for inflation.
However, Mexico still has a long way to go.
Americans have a stake in Mexico's economic recovery.
U.S. exporters would benefit from a prosperous Mexico because
it would enable Mexicans to purchase U.S. products. And, since
the Mexican population is large and will continue to grow, its
citizens could provide U.S. exporters with a vast market for
their products. It is estimated that by the year 2000,
Mexico's population could reach as high as 100 million.
Furthermore, by creating a stable environment for
investment, an agreement would put Mexico on the road to
financing its $80 billion international debt. This is of
significant importance to U.S. banks that hold almost one-third
of Mexico's commercial debt.
With all these benefits in mind, it seems obvious that the
United States should actively pursue an agreement with Mexico.
However, no formal action has been taken. Some trade experts
are reluctant to urge the U.S. government to act because they
fear that bilateral agreements will undermine efforts in
multilateral trade talks. However, it is undetermined, at
best, as to whether this argument is true. What is clear is
that free trade agreements produce tangible benefits. Our
agreement with Canada is evidence of this.
Moreover, it is quite possible that bilateral agreements
can actually promote multilateral trade liberalization. In
fact, Jeffrey Schott, an economist at the Institute for
International Economics, has noted that trade guidelines set by
our agreement with Canada "were regarded as useful precedents"
in recent multilateral trade negotiations.
Not only can bilateral agreements serve as useful
precedents, they can induce other nations to liberalize their
trade laws. For example, if U.S. and European governments
agreed to remove all trade barriers on automobiles exported
between them, Japanese automobile industries would be placed at
a considerable competitive disadvantage in U.S. and European
markets. As a result, the Japanese government might find it
worthwhile to negotiate the elimination of its barriers in
return for equal treatment.
The United States already has implemented mutually
advantageous agreements with Israel and Canada. Our agreement
with Israel has been deemed a success and the U.S.-Canada Free
Trade Agreement, which was implemented in January 1989, has
already received praises. A free trade agreement with Mexico
would certainly be another step in the right direction.
Notable Quotables
MW
MEDIA
from
MediaWatch®
RESEARCH
CENTER
A bi-weekly compilation of the latest outrageous,
111 S. Columbus St.
sometimes humorous, quotes in the liberal media.
Alexandria, Va. 22314
(703) 683-9733
Subscriptions: $19/year
THE LINDA ELLERBEE AWARDS
FOR DISTINGUISHED REPORTING
The Best Notable Quotables of 1990
December 24, 1990 (Vol. Three; No. 26)
The Award Judges:
Brent Baker, Editor of Notable Quotables
William Kling, former Chicago Tribune political reporter
L. Brent Bozell III, Publisher of Notable Quotables
Rush Limbaugh, radio talk show host, Excellence in Broad-
Priscilla Buckley, Senior Editor of National Review
casting network
Mona Charen, syndicated columnist and former
Marlin Maddoux, talk show host, USA Radio Network
speechwriter for Ronald Reagan
Patrick McGuigan, Chief editorial writer, Daily Oklahoman
Robert Conrad, actor
William Murchison, Dallas Morning News columnist
John Corry, Boston University visiting lecturer, Broadcast-
Marvin Olasky, Associate Professor of journalism at the
and Film; former New York Times television critic
University of Texas
Mark Davis, talk show host, WRC Radio, Washington, D.C.
Burton Yale Pines, Vice President, the Heritage Foundation
Midge Decter, Executive Director, Committee for the Free
Mike Rosen, talk show host, KOA Radio in Denver
World
William Rusher, Claremont Institute Senior Fellow; former
Terry Eastland, Resident Scholar, Ethics and Public Policy
Publisher of National Review
Center; American Spectator "Presswatch" columnist
Marc Ryan, Waterbury Republican American editorial writer
John Fund, Wall Street Journal editorial writer
Ted J. Smith III, Associate Professor of Mass Communications
Tim Graham, Editor of Notable Quotables
at Virginia Commonwealth University
Dan Griswold, editorial page editor of the Colorado
R. Emmett Tyrrell Jr., Editor of The American Spectator
Springs Gazette Telegraph
Dick Williams, Atlanta Journal columnist
Cliff Kincaid, talk show host, News Talk Radio Network
The Media Research Center (MRC) asked a group of 26 media observers to choose the winners from
quotes provided by the MRC in 20 award categories. First under each award heading is the winner, fol-
lowed in order by the top runners-up. Notable Quotables thanks the judges for determining the most out-
rageous and/or humorous utterances from the media over the past year. (Please see page 8 for information
on how to obtain additional copies.)
Bring Back the Iron Curtain Award
"This is Marlboro country, southeastern Poland, a place where the transition from communism to
capitalism is making more people more miserable every day No lines at the shops now, but plenty at
some of the first unemployment centers in a part of the world where socialism used to guarantee everybody
a job." -- CBS News reporter Bert Quint on the April 11 CBS Evening News.
Runners-Up:
"Communism is being swept away, but so too is the social safety net it provided Factories, previously
kept alive only by edicts from Warsaw, are closing their doors, while institutions new to the East, soup
kitchens and unemployment centers are opening theirs Here are the ones who may profit from Poland's
economic freedom. A few slick locals, but mostly Americans, Japanese, and other foreigners out to cash
in on a new source of cheap labor." -- Reporter Bert Quint on CBS This Morning, May 9.
"These refugees have been told little about the realities of life in the West, including the fact that some
people sleep on the street They will soon learn that jobs are hard to find, consumer goods expensive, rela-
tives in Albania will be missed. Many refugees, according to experts, will suffer from depression, and in
some cases, drug abuse." -- ABC's Mike Lee on what's facing fleeing Albanians, July 14 World News Tonight.
Kevin Phillips Tax Fairness Award
"(C)ountless liberal analysts over the last five years have documented time and again how
Reaganomics delivered a feast to the greedheads and starvation to the poor (The Gilded Age and The
Roaring Twenties) were marked by the same kinds of excesses as the 1980s gross concentrations of
wealth in the hands of a tiny privileged elite, achieved primarily by deliberate Republican policies that left
most Americans behind while debt, greed, and conspicuous consumption soared out of control." -- Robert
Rankin, national economics correspondent for Knight-Ridder Newspapers, in the July 22 Philadelphia In-
quirer.
Runners-Up:
"For ten years Ronald Reagan taught us there was a free lunch. Folks, he said, we're going to cut your
taxes and we're going to spend like there's no tomorrow and you don't have to pay for it. Folks, we're now
paying for it and it's bitter medicine we're going to have to raise taxes to get some sort of fairness
here For ten years the great wizard sold us that idea, that we could grow our way out of the deficits and
we bought it, and we didn't." -- Sam Donaldson on This Week with David Brinkley, October 7.
"The tax package hammered out last weekend continues a Washington policy established in the
Reagan era: It takes a heavy bite out of the paychecks of working-class Americans." -- Beginning of front
page story by Boston Globe reporter Charles Stein, October 2.
Bring Back the Gas Lines Award
<
"We have allowed this country to be held hostage by an industry that produces a product vital to our
national interests. This makes about as much sense as having the military services or the nation's water
supply controlled by private corporations In the long run, what would make the most sense would be to
nationalize the oil industry to protect the economy." -- Washington Post columnist Judy Mann, August 8.
Runner-Up:
"The hottest new proposal was a broad-based tax on sources of energy gasoline, oil, natural gas,
and nuclear power. In all, it would raise about $20 billion. Everybody seemed to agree it was a good idea
except, of course, the transportation lobby." Unbylined box in Newsweek, July 16.
Damn Those Conservatives Award
"If you're miffed because the Cold War's over, Ceaucescu's dead, the Sandinistas lost the election in
Nicaragua and it seems like here's no one around to hate any more, then maybe The Hunt for Red October
is just the thing This is a Reagan youth's wet dream of underwater ballistics and East-West conflict." --
Washington Post film critic Desson Howe in the "Weekend" section, March 2.
Runners-Up:
"In a year that has had some of the dirtiest, the sleaziest, the most misleading ads ever, it's hard to pick
the very worst, but here are a couple that the experts chose. North Carolina's Jesse Helms, who battled a
black opponent, last week overtly introduced the most divisive issue of the contest, race The truth is Gantt
supported the vetoed civil rights bill which he argued specifically warned against quotas." -- ABC reporter
Jackie Judd on Nightline, November 6.
"What Helms has done is taken the words 'North Carolina values' a beautiful phrase that evokes the
small-town, good-hearted sense of place that one feels when one travels the state and redefined them
as the values belonging to a certain group of North Carolinians, mostly white, mostly male, mostly unhap-
py with the changes of the last 30 years. To Helms and his supporters, 'North Carolina values' seems to trans-
late into a status quo view of the world in which blacks, women, and poor people know their stations in
society." -- Reporter Juan Williams in The Washington Post Magazine, October 28.
"Are you not also in danger of people looking at the Republican Party after this whole experience, and
saying, 'Oh, now we do know what they stand for that's different. They stand for helping the rich and at the
same time, the President's talking about vetoing the civil rights bill, so helping the rich and white guys?"
-- ABC and NPR reporter Cokie Roberts to Richard Darman, October 21 This Week with David Brinkley.
-- page
Paul Ehrlich Ecological Panic Award
>
"If nothing is done to reverse ozone damage, scientists predict hundreds of millions of skin cancer
cases in the U.S. alone, not to mention increased global warming that would turn much of the planet into
a desert." Reporter Mark Phillips on the January 16 CBS Evening News.
Runners-Up:
"The missteps, poor efforts and setbacks brought on by the Reagan years have made this a more sober
Earth Day. The task seems larger now." Today co-host Bryant Gumbel, April 20.
"Clean air and water, pure food and natural beauty, which most Californians were all for a few months
ago, have been made to seem a radical and expensive idea that has to be rejected at the polls on Tues-
day. The stakes are very high in California because environmentalists know that if the Big Green initiative
happens to pass there, the idea of cleaning up the air and water could spread like wildfire to all the other
states. The forces opposing it know that too." Charles Kuralt on America Tonight, October 31.
Good Morning Morons Award
-
"We would like to believe the State of the Union address is a time when the President tells the American
people the way it is. But no one really wants to hear that, so the President keeps reality down to a mini-
mum. The President was remarkably upbeat for a man who runs a country with a monstrous national debt,
huge balance of trade problems, a crumbling infrastructure, dirty air, countless homeless people, a coast-
to-coast drug epidemic, and a faltering self-image." CBS This Morning co-host Harry Smith, February 2.
Runners-Up:
"The bottom line is more tax money is going to be needed. Just how much will be the primary issue on
the agenda when Congressional leaders meet with the President later today, Wednesday, May the 9th,
1990. And good morning, welcome to Today. It's a Wednesday morning, a day when the budget picture,
frankly, seems gloomier than ever. It now seems the time has come to pay the fiddler for our costly dance
of the Reagan years." - Bryant Gumbel opening NBC's Today, May 9.
Bob Squier, Democratic Strategist: "I think that it was a game of chicken. I think what you had was
Gingrich, who is supposed to be part of the leadership, leading people literally out of the deal."
Bryant Gumbel: "Acting irresponsibly."
Gumbel:" Is this the legacy of Ronald Reagan politics, I mean, feel-good politics of the '80s, no-respon-
sibility politics of the '80s?"
Roger Ailes, Republican Strategist: "I think that's a misnomer...
Gumbel: "But weren't the '80s about spending what we didn't have? And that was Ronald Reagan." --
Exchanges on Today, October 5.
Most Honest Confession Award
"There is no such thing as objective reporting I've become even more crafty about finding the voices
to say the things I think are true. That's my subversive mission." -- Boston Globe environmental reporter
Dianne Dumanoski at an Utne Reader symposium May 17-20. Quoted by Micah Morrison in the July
American Spectator.
Runners-Up:
"I think that when abortion opponents complain about a bias in newsrooms against their cause, they're
absolutely right."
"Opposing abortion, in the eyes of most journalists. is not a legitimate, civilized position in our society."
-- Boston Globe legal reporter Ethan Bronner in Los Angeles Times reporter David Shaw's series on abortion
coverage, July 1.
"After seeing our footage, she told us that Frontline doesn't co-produce anti-communist programs." --
Cinematographer Nestor Almendros on a Frontline producer's reaction to his anti-Castro documentary
Nobody Listened, quoted by Don Kowet in the August 8 Washington Times.
-- page 3--
Gorbasm Award*
<
"Gorbachev has probably moved more quickly than any person in the history of the world. Moving
faster than Jesus Christ did. America is always lagging six months behind I think we can get by easily with
a $75 billion military budget. Those bombers and all of this stuff is an absolute waste of money and a joke."
-- Ted Turner, "TV chieftain with an outspoken conscience," celebrated in the January 22 Time.
Runners-Up:
"The supreme leader of an atheistic state was baptized as a child. Now, in a sense, Gorbachev means
to accomplish the salvation of an entire society that has gone astray Much more than that, Gorbachev
is a visionary enacting a range of complex and sometimes contradictory roles. He is simultaneously the
communist Pope and the Soviet Martin Luther, the apparatchik as Magellan and McLuhan. The Man of the
Decade is a global navigator." Time Senior Writer Lance Morrow, January 1.
"He has, as many great leaders have, impressive eyes There's a kind of laser-beam stare, a forced
quality, you get from Gorbachev that does not come across as something peaceful within himself. It's the
look of a kind of human volcano, or he'd probably like to describe it as a human nuclear energy plant."
-- Dan Rather on Mikhail Gorbachev, quoted in the May 10 Seattle Times.
# With thanks to Rush Limbaugh
Thurgood Marshall Judicial Reporting Award
-
"Supreme Court nominee David Souter wants the world to stop viewing him as a nerd. Senate
Democrats want to know if, instead, Souter is a neanderthal
a
mean-spirited
conservative
bent
on
wreck-
ing constitutional protections for women, minorities, and accused criminals." -- Beginning of September 13
USA Today cover story by legal reporter Tony Mauro.
Runners-Up:
"Chief Justice Rehnquist had the kind of image problems that might be expected of a jurist who
habitually rejected constitutional equality for women, approved the execution of allegedly insane prisoners
without a hearing, denied constitutional equality to aliens and bastards, asserted that the public did not
have a constitutional right to attend court trials, said prisoners had no rights to practice religious freedom,
and spoke warmly of the legendary Isaac ('Hanging Judge') Parker, who cheerfully ordered eighty-five
executions." -- Former CBS News law reporter Fred Graham in his book Happy Talk.
"Senator Simon, is there any doubt in your mind that (Souter's) views pretty well parallel those of John
Sununu's which means he's anti-abortion or anti-women's rights, whichever way you want to put it?" -- Dan
Rather on the CBS Evening News, July 23.
Jim Florio Tax Advocacy Award
-
"The overall tax burden for Americans, local, state and federal, is actually quite low The fact is
Americans could pay more taxes and the country wouldn't go down the tube. Taxpayers don't believe this
because they are being conned by the politicians. The truth is that the United States needs higher taxes
and can afford them. Some political leaders are now starting to say that, but until more say it, the country
will remain in trouble." Commentator John Chancellor on the NBC Nightly News, April 17.
Runners-Up:
"The fact is that most government spending cannot be cut. The way out of the mess is for the govern-
ment to raise some money through taxes and at last that's being done. And there's encouraging news in
the returns from yesterday's elections. Six states from Massachusetts to California rejected measures
designed to limit taxation. Can it be that the great tax revolt of the 1980s is coming to an end? If true, maybe
the country can get on with the business of balancing its books in a sensible and logical way." -- John
Chancellor on NBC Nightly News, November 7.
"(Except) for capital gains, it is certain the President won't mention the T word, and yet taxes are very
much at the heart of what all our potential solutions are. How long can both sides pretend that a hike's not
needed?" Bryant Gumbel on Today, January 31.
page 4 -
Media Hero Award/Abroad
"Ortega's defeat is something American Presidents had sought for ten years. Yet Ortega's statesman-
like acceptance of the voters' decision has prompted some in Washington to call the Sandinista leader a
champion of democracy." Today co-host Deborah Norville before interview with Daniel Ortega, April 24.
"We talked to one observer who told us that if he were awarding the Nobel Prize, he would nominate
Mikhail Gorbachev and Daniel Ortega. What do you think of that?" one of Norville's questions to Ortega.
Runners-Up:
"Fidel (Castro) touched this young machine adjuster, and the man enjoyed a mild ecstasy. I know the
feeling." Institute for Policy Studies Senior Fellow Saul Landau in his pro-Castro documentary The Uncom-
promising Revolution, aired along with Nobody Listened on PBS August 8.
"Mandela leaves as a principled man, with all but the dullards understanding why he would embrace
the Palestinians, whose children are being killed and family homes bulldozed in Israel just as black families'
are in Soweto Moreover, if Mandela is a terrorist as conservatives have called him he would fit right
in with U.S. patriots such as George Washington, Patrick Henry, Nat Turner, and Harriet Tubman. If it had not
been for those terrorists, what would we have to wave our flags about on the Fourth of July?" -- USA Today
Inquiry Editor Barbara Reynolds, June 29.
Media Hero Award/At Home
<
"The problem for Florio is that, as history has shown, when you step up and are a leader, people often
don't like you. And it can take a long time, even centuries, for history to look back and say that was a good
guy I think that Florio will go down as the first, I hope not the last, brave man of the '80s and '90s." Wash-
ington Post "Outlook" editor Jodie Allen on N.J. Governor who raised income taxes, July 29 Money Politics.
Runners-Up:
"Let Ronald Reagan ride off into the sunset untroubled by fleeting memories of astrologers, smoke-
and-mirrors budget arithmetic, and arms-for-hostages swaps. Dwell instead on those political tall timbers
still standing, the heirs of Jefferson, Madison, and Lincoln Only Jesse Jackson, still an acquired taste for
most white Americans, can strike the kind of inspirational pose that one could imagine being immortalized
in granite." -- Time Senior Writer Walter Shapiro in the September GQ.
"(Justice William Brennan) loved the flag clearly, and the Constitution, too Maybe the way to remem-
ber Brennan's years on the Court is with some words he spoke to another Georgetown University event
back in 1979. 'The quest for freedom, dignity, and the rights of man will never end,' he said. The quest,
though always old, is never old, like the poor old woman in Yeats' play. 'Did you see an old woman going
down the path?' asked Bridget. 'I did not,' replied Patrick, who had come into the house just after the old
woman had left it. 'But I saw a young girl and she had the walk of a queen.' William Brennan loved and
served two young girls who walked like queens - his country, and its highest court." Conclusion to story
by reporter Bruce Morton on the July 21 CBS Evening News.
Dewey Defeats Truman Award
-
"Polls won't close here for another thirty minutes, but the widespread belief that the Sandinistas will
prevail has shifted thinking far beyond the ballot box. The topic of the day is: how will a freely elected San-
dinista government be treated by the United States?" NBC's Ed Rabel in Nicaragua, Feb. 25 Nightly News.
Runners-Up:
"The election observers say the Bush Administration may have itself to blame for Daniel Ortega's rise
in popularity among the voters. The reason, they say, is the U.S. military invasion in Panama. That was a
move that was widely denounced here in Nicaragua. It was a close race until the U.S. invaded." NBC
reporter Ed Rabel four days before Nicaragua election, February 21 Nightly News.
"For the Bush Administration and the Reagan Administration before it, the (ABC News-Washington Post)
poll hints at a simple truth: after years of trying to get rid of the Sandinistas, there is not much to show for
their efforts." Peter Jennings five days before vote, World News Tonight, February 20.
-- page 5--
The Real Reagan Legacy Award
"It will take 100 years to get the government back into place after Reagan. He hurt people: the dis-
abled, women, nursing mothers, the homeless." -- White House reporter Sarah McClendon in USA Today,
Feb. 16.
Runners-Up:
"Now the lessons of Iran-Contra are also clear. We have learned this: that a President who lies to Con-
gress and to the people will feel free to joke about it. A Vice President who lies to Congress and to the
people will be elected President. A White House aide who lies to Congress and to the people will be hailed
as a hero until the time for a reckoning comes An administration, in short, that lies to Congress and to the
people is the accepted order of things. And a Constitution designed to prevent exactly that order is a mere
scrap of paper." -- PBS' Bill Moyers writing in the January 1990 issue of the Progressive.
"Okay, Democrats are certainly not without blame. But I believe the S&L crisis lands right at the
Republican door. It was the magic of the marketplace that took off the regulations Oh, Ronald Reagan
and the magic of the marketplace was the theme of the '80s. Greed in this country is associated with Ronald
Reagan." -- Newsweek reporter Eleanor Clift on Face the Nation, July 29.
Which Way Is It? Domestic Affairs
"When inflation is taken into account, it adds up to a cut in defense spending, and that's the first time
in a long time that has happened." -- Bob Schieffer on the January 27 CBS Evening News.
VS.
"It's easily overlooked, but the fact is, that in real terms, the defense budget has been going down every
year since 1985. -- CBS News Pentagon correspondent David Martin on Nightwatch, January 31.
Runners-Up:
"If there's anything that we heard out there at the polls today, it was the sound of Reaganomics crash-
ing all around us. If there's anything left of Reagan's trickle-down theory, Dan, it seems to be anxiety which
seems to be trickling down through just about every segment of our society." -- Ed Bradley during CBS News
election night coverage, November 6.
VS.
"We have a lot of turnovers where Republican Governors raised taxes and they have been turned out."
-- Lesley Stahl, also during CBS election coverage.
Spending,
Spending and income
VS.
Income,
rose slightly in Aug.
Orders Fall
-- Philadelphia Inquirer, September 27
-- Washington Post, same day
Joe Isuzu Foreign Correspondent Award
"But they (young people) are the healthiest and most educated young people in Cuba's history. For
that many of them say they have Castro and his socialist revolution to thank if they long for the sweep-
ing changes occurring in Eastern Europe, they are not saying so publicly To the extent he can, Castro has
been rewarding young people. For example, on their return home (from Angola), the 300,000 Cubans sent
to Africa were first in line for housing, jobs, and education. Such benevolence breeds dedication, some
young people say." -- NBC reporter Ed Rabel, April 1 Nightly News.
Runners-Up:
"It's almost impossible for most Americans to understand a government organization that monitors
everything, that has tentacles reaching into all aspects of Soviet life. But keep in mind the KGB is like a
combination of the CIA, the FBI, of the National Security Agency, the Secret Service, and the Coast Guard,
too. From Lenin to Stalin to Gorbachev, its members have been a proud corps of the national elite, intel-
ligent, talented, and fully in control. The officers of the KGB, in fact, decided reform was necessary long
before Gorbachev came to power." -- Diane Sawyer on ABC's Prime Time Live, August 2.
-- page 6--
"But Ortega, an irritant to Carter, became an obsession to Reagan, who saw him as an instrument of
Moscow. The Contra rebels were the blunt instrument in Ronald Reagan's attack on Daniel Ortega. Reagan's
dogged support for the Contras forever marked and ultimately scarred his foreign policy Many of the
Contras were former members of the Nicaraguan National Guard, Somoza's enforcers. They were brutal,
often inept It has been one of the longest and most traumatic chapters in U.S. history in Latin America,
and tonight it seems to be ending, and ending in a way Ronald Reagan never could have imagined." --
NBC reporter John Dancy the day after Nicaragua's election, February 26 Nightly News.
Gennadi Gerasimov Newspeak Award
"Free at last, the temptation is to exercise all that freedom fully, quickly and sometimes unwisely.
Often, it means biting the hand that freed and fed you. Lithuania is the latest and most ludicrous ex-
ample There is little more logic to Lithuania being permitted to unilaterally and unlawfully declare its in-
dependence from the USSR than there would be for Texas to secede from the USA. Both were grabbed
during a war. But both owe much to their modern-day mother country. Gorby has a right to feel livid about
Lithuania. The way you might feel about a runaway child, tempted to beat him within an inch of his life."
-- USA Today founder AI Neuharth in an April 20 column.
Runners-Up:
"Yes, somehow, Soviet citizens are freer these days: freer to kill one another, freer to hate Jews, freer
to express themselves But doing away with totalitarianism and adding a dash of democracy seems an
unlikely cure for what ails the Soviet system." -- CBS This Morning co-host Harry Smith, February 9.
"Many Soviets viewing the current chaos and nationalist unrest under Gorbachev look back almost
longingly to the era of brutal order under Stalin." -- Mike Wallace on 60 Minutes, February 11.
"Soviet people have become accustomed to security if nothing else. Life isn't good here, but people
don't go hungry, homeless; a job has always been guaranteed. Now all socialist bets are off. A market
economy looms, and the social contract that has held Soviet society together for 72 years no longer ap-
plies. The people seem baffled, disappointed, let down. Many don't like the prospect of their nation be-
coming just another capitalist machine." -- CNN Moscow reporter Steve Hurst on PrimeNews, May 24.
Which Way Is It? Foreign Affairs
>
"Attempting to defect will no longer be a severely punishable offense, but will be known as 'border
trespass,' subject only to a minor penalty. And the death penalty, now applied to 34 offenses, will be
retained only for those that involve direct 'betrayal' of the communist state and the social order." -- Chris-
tian Science Monitor correspondent Eric Bourne, September 12.
VS.
"A reminder from Eastern Europe today that not all has changed. In Albania today, border guards shot
and killed a four-year-old girl when they opened fire on a group of Albanians trying to cross into Yugos-
lavia. Albania is the last of the totalitarian states in Eastern Europe." -- Peter Jennings on World News Tonight,
same day.
Runners-Up:
Black Nationalist
Urges Continued
Armed Struggle
vs.
Mandela Poised to Take Role of Conciliator
-- Washington Post front page, February 12
-- same newspaper front page, same day
Moscow protesters call
Ryzhkov urged to resign
for Gorbachev to quit
VS.
at pro-Gorbachev rally
-- Boston Herald, September 17
-- Boston Globe, same day
-- page 7
Award for the Silliest Analysis
"The reporters (at Capital News) work for a shining institution, basically the last uncorrupted institution
you can find. Hospitals are corrupt. Judges are corrupt. Everybody in the world is corrupt. But our
newspapers are essentially a monument to idealism." Former Washington Post editor Christian Williams,
Executive Producer of ABC's short-lived series Capital News, April 9 Newark Star Ledger.
Runners-Up:
"In many ways, in outlook and behavior the U.S. has begun to act like a primitive warrior culture. We
seem to believe that leadership is expressed, in no small part, by a willingness to cause the deaths of
others Our collective fantasies center on mayhem, cruelty, and violent death. Loving images of the
human body -- especially of bodies seeking pleasure or expressing love inspire us with the urge to cen-
sor." Time essayist Barbara Ehrenreich, October 15.
"It used to be that the United States was number one, dominant So right now, we are fast losing our
position as number one, Connie Yes, we're no longer dominant, we're no longer the number one nation,
Connie so we are no longer that number one, dominant nation. That's the big change here now." CBS
economics reporter Ray Brady on the Evening News, July 8.
Quote of the Year
<
"Few tears will be shed over the demise of the East German army, but what about East Germany's
eighty symphony orchestras, bound to lose some subsidies, or the whole East German system, which
covered everyone in a security blanket from day care to health care, from housing to education? Some
people are beginning to express, if ever so slightly, nostalgia for that Berlin Wall." -- CBS reporter Bob Simon
on the March 16 Evening News.
Runners-Up:
"The 'balanced' report, in some cases, may no longer be the most effective, or even the most infor-
mative. Indeed, it can be debilitating. Can we afford to wait for our audience to come to its own con-
clusions? I think not." Teya Ryan, Senior Producer of Turner Broadcasting's CNN-produced Network Earth
series, in the Summer 1990 Gannett Center Journal.
"Modern man has reached the point where his demands for space are ravaging the planet, and wiping
out other life forms in the process. Stanford biologist Paul Ehrlich is back with more of his series 'Assignment
Earth,' and this morning he begins with a report on how man is destroying the entire ecological system with
something that appears to be completely harmless." -- Deborah Norville introducing Paul Ehrlich's report
on cows, January 9 Today.
"Congress changed the Soviet Constitution to permit limited private ownership of small factories, al-
though laws remain against exploitation of everyone else." -- NBC Moscow reporter Bob Abernethy on
Nightly News, March 13.
Nothing To Do With the Media, But We Couldn't Resist
"I wish I'd done this before I'd run for President. It would've given me insight into the anxiety any in-
dependent businessman or farmer must have Now I've had to meet a payroll every week. I've got to pay
the bank every month I've got to pay the state of Connecticut taxes It gives you a whole new perspec-
tive on what other people worry about." Former Senator George McGovern on owning a Connecticut
hotel, his first-ever business venture, in the March 1 Washington Post.
-- L. Brent Bozell III, Publisher: Brent H. Baker, Tim Graham; Editors
-- Callista Gould, Jim Heiser, Marian Kelley, Gerard Scimeca; Media Analysts
Extra Copies/Subscriptions. Columnists, editorial writers and talk show hosts can instruct their readers or
listeners to call 1-800-243-BIAS (243-2427) to receive this issue. A recorded message will tell callers to send $1.00 for
each copy to: Media Research Center, Notable Quotables, 111 S. Columbus St., Alexandria, Va. 22314. For a 1 year
subscription ($19) starting with this awards issue, callers may leave their credit card number and address on the tape.
Interviews. Talk show hosts and producers who wish to arrange an interview to discuss these awards or to
review the media's 1990 performance, should call Greg Mueller of Creative Response Concepts at (703) 683-5004.
National Kemp's Blanket Crusade
Journal
THE WEEKLY ON POLITICS AND GOVERNMENT
DEC. 9, 1989/NO. 49
ALL-PURPOSE
POLITICAL
L
PHOLE
How TAX-FREE
DOLLARS GET INTO
CAMPAIGNING
AIG Issues Forum
Whythe Europ
"Freedom of Services" IS
business he
IF TWELVE NATIONS OF EUROPE CAN
FUNCTION AS ONE BY 1992, WHY CAN'T 50
STATES DO THE SAME?
There's something funny going on,
although no one's laughing.
Europeance Market
As the countries of the European
Economic Community behave more
like a single market in 1992 and beyond,
the 50 states here at home behave
sometimes more like medieval fiefdoms.
At AIG, we think it's time to talk about
the problem, at least. And see what might be
done to solve it. Now, before 1992 gets here.
FREEDOM OF SERVICES BENEFITS THE CONSUMER.
At the heart of the transformation of
the European Common Market is
Twelve different European countries will
eventually have one set of standards.
something called "freedom of services."
This means companies established to
services at lower cost to consumers.
do business under one Common Market
MEANWHILE, BACK AT THE RANCH
country will be able to do business
in any other member country-a concept
We don't have freedom of services here
known as "mutual recognition"-
at home. For example, each state, from
without having to be established there.
Maine to California, is still imposing
The result is a more dynamic, compet-
regulations piecemeal on the insurance
itive and efficient marketplace with less
industry, which is increasingly national
bureaucracy. And better products and
and international in scope.
ean principle of
important to American
reathome.
Today, before an insurer can deliver an
consumer, to business, to America's
insurance policy to a client who does
economic well-being-we feel it's worth
business, say, in 40 states, it takes a
talking about.
small truck to distribute all the
Now, before 1992 gets here.
paperwork brought about by regulatory
WHY IS AIG RUNNING ADS LIKE THIS?
redundancy among the various states.
Which adds to the cost of doing
AIG (American International Group) is
business. And to the price consumers
the largest underwriter of commercial and
ultimately pay for goods and services.
industrial insurance in America, and the
THERE'S GOT TO BE A BETTER WAY.
leading U.S.-based international insurer.
The nature of our business means we
What's needed, it seems to us, is
deal every day with issues affecting the
something along the lines of what's trans-
future of the world economy.
piring in Europe.
We believe it's essential to start a
It is clearly in the consumers' interest to
dialogue with people like yourself to
continue regulation of auto and home-
help our nation compete more
owners insurance on a state-by-state basis.
effectively.
For commercial and industrial insur-
Let your elected officials know what
ance, however, where coverages often
you think. Or let us know what you
apply to risks across the country, why
think. Write M.R. Greenberg, Chairman,
not borrow from the European model
AIG, 70 Pine Street, New York, NY 10270.
and allow insurers to conduct business
nationwide according to the laws of their
home state?
This type of regulatory reform isn't
something that's going to happen
overnight. But given the benefits-to the
AIG
World leaders in insurance
and financial services.
editions
Nobody Brews The News
Like Morning Edition.
If the daily roll call of di-
and features on science and
Edition side of bed. Before
sasters is getting a little stale,
the arts.
long, you won't want to start
take a fresh approach to the
And with Morning Edi-
your day any other way.
news with Morning Edition
tion, you'll get the morning
from National Public Radio.
news with things you won't
Morning Edition is a stim-
find anywhere else on the
morning
ulating blend of the day's
dial
intelligence, depth,
edition
R
most important stories, news
and whimsy.
analysis, sports, business,
So get up on the Morning
Drink It In .This Is Radio News The Way It's Meant To Be Brewed.
Check local listings for your public radio station or call NPR at (202) 822-2323.
National Public Radio®News
INSIDE WASHINGTON
Anthony on the Rebound?
Rep. Beryl F. Anthony Jr., D-Ark., has won some unexpected plaudits.
House Majority Leader Richard A. Gephardt, D-Mo., praised Antho-
ny's performance as head of the Democratic Congressional Campaign
Committee and said that "it would be good" if he stayed on as chair-
man. Anthony had said that this would be his last term at the campaign
committee. Earlier this year, when Anthony was being criticized for the
committee's shaky finances and for his own political missteps, sources
close to Gephardt said that their boss shared those views.
Cue the Justice!
Supreme Court Associate Justice Antonin Scalia and C-SPAN are back
on the same wavelength. Scalia had asked the American Enterprise
Institute for Public Policy Research to bar C-SPAN cameras from his
Dec. 6 lecture. But C-SPAN's director of programming, Terry Mur-
phy, wrote a letter to AEI president Christopher C. DeMuth protesting
Scalia's decision. After talking with DeMuth, Scalia relented, allowing
the airing of the Francis Boyer lecture on, of all things, the press and the
courts. Earlier this year, Scalia had barred TV cameras from an Oct. 24
speech in Ohio.
Lobbyists' Long Memories
Controversy over now-repealed medicare catastrophic coverage contin-
AARP
ues to haunt the American Association of Retired Persons. The group,
which had supported the coverage, was caught off guard by the volume
of protests from, among others, higher-income retired Americans that
prompted Congress to junk the program. Now corporate lobbyists
battling the AARP on an unrelated matter-age discrimination in
employee benefits-are invoking the incident to argue that the group is
out of touch with the interests of its members.
Targeting Campaign Spending
Although the odds are still running against them, House supporters of a
bipartisan campaign finance reform bill plan one more push next
spring. Among the major obstacles they face is the fact that most
Democrats favor placing a spending limit on candidates, a restriction
opposed by Republicans. If the bipartisan approach falters, House
Democrats may put forward a partisan plan keyed to spending ceilings;
party polling indicates that voters are much more exercised about the
over-all amount of money spent on congressional campaigns than the
source of the candidates' cash.
Quayle Hunting (Cont.)
Vice President Dan Quayle's efforts to avoid ridicule are meeting with
little success. The Capitol Steps, a Washington comedy troupe, has
released a Christmas album called "Danny's First Noel." And a
Bridgeport (Conn.) couple-Democrats with no journalistic or political
experience-starts publication in January of the Quayle Quarterly, a
political-satire newsletter. "Our purpose is to make people laugh but
also to make them think," said Deborah Werksman, one of the publish-
ers. Separately, Quayle's so-so standing in many polls prompts Republi-
can insiders to wonder if President Bush's pledge to keep Quayle on the
1992 ticket will be the final word.
NATIONAL JOURNAL 12/9/89 2977
National
Journal
President and Publisher: John Fox Sullivan
Editor: Richard S. Frank
Executive Editor: Michael Wright
Managing Editors: Richard Corrigan,
Charles S. Clark
Production Editor: Greta G. Waller
Assistant Managing Editor: Jake Welch
Art Director: Karol A. Keane
Associate Art Director: Phyllis L. Maringer
PHOLE
Picture Editor: Richard A. Bloom
Chief Copy Editor: Jo Anne Moncrief
Associate Editors: Deborah A. Birnbaum,
David L. Wilson
Associate Picture Editor: John Eisele
Assistant Production Editor: Laurie Joachim
Production Assistant: Everett O. Lee
2980
Staff Correspondents: James A. Barnes,
Richard E. Cohen, Lawrence J. Haas, Dick
Reports
Kirschten, Julie Kosterlitz, Margaret E. Kriz,
Christopher Madison, Carol Matlack, W.
John Moore, David C. Morrison, Burt
POLITICS
2980
Solomon, Rochelle L. Stanfield, Paul
Starobin, Bruce Stokes, Kirk Victor
ALL-PURPOSE LOOPHOLE
West Coast Correspondent: Ronald Brownstein
Some organizations that run on tax-deductible dollars have been used for
Contributing Editors: Dom Bonafede,
political purposes, a practice that if not illegal, comes close to skirting the
Robert Guskind, Jerry Hagstrom, Neal R.
Peirce, Jonathan Rauch, William Schneider,
intent of the tax code's provisions for tax-exempt groups.
Carol F. Steinbach
Richard E. Cohen and Carol Matlack
Contributing Photographer:
Shepard Sherbell
Vice President, Publishing: Steve Hull
ENVIRONMENT
2989
Vice President, Advertising: Linda H.
Cheeseman
AHEAD OF THE FEDS
Associate Publisher: Eleanor Evans
State governments have been filling the void left by the cutback of federal
Advertising Services Manager: Isobel Ellis
Advertising Sales: Susan Beninati,
environmental controls under the Reagan Administration. As a result,
Jane Dees, Mary Thoms, Erica Van Dyk
worried industries are pressing for uniform federal standards.
Administrative Assistant: Cathy Newson
Margaret E. Kriz
Marketing Director: Charles Post
Circulation Director: Gene D. Sittenfeld
Circulation Manager: Janie D. Blackman
HOUSING
Fulfillment Manager: Denise Westray
2994
Director of Library Services: Rose Pool
KEMP'S CRUSADE
Library Assistant: Judith Proctor
Vice President, Finance: Grace Geisinger
Housing and Urban Development Secretary Jack F. Kemp is trying to
National Journal (ISSN 0360-4217). Published weekly,
turn his beleaguered department into the focal point for a new war on
except for the last week in August and the last week in
December, by National Journal Inc., 1730 M St. NW,
poverty, and the Bush Administration has endorsed many of his ideas.
Washington, D.C., 20036. Telephone (202) 857-1400. For
Carol E Steinbach
subscription service, (800) 444-4078. Available by sub-
scription only at $624 per year, including semiannual
indexes. Subscriptions of three copies per week to gov-
ernment personnel are $624. Academic and public library
rate $416; faculty and student rate $99. Foreign subscrip-
BUDGET
2999
tions add $149 per year for postage and handling; foreign
orders must be prepaid. Binders are $30 for a set of two,
prepaid. Second-class postage paid at Washington, D.C.
SECURITY BLANKET
Pre-press services: Applied Graphics Technologies. Print-
ing: McArdle Printing Co. Postmaster: Send address
Applying the huge social security surpluses to the budget's annual deficit
changes to Circulation Department, National Journal,
1730 M St. NW, Washington, D.C., 20036.
calculations masks the size of the deficit, according to numerous experts,
©1989 by National Journal Inc. All rights reserved.
and blocks economically useful, long-term investment.
Reproduction in whole or part without permission is
strictly prohibited.
Lawrence J. Haas
A Times Mirror
Company
BPA
Cover photo: Richard A. Bloom
WARSAW P
00000
WARSAW PACT
1000000
2989
3003
3020
Washington Update
MOVING TOWARD GORBACHEV3003
STATE OF THE STATES
3007
The Malta summit was the culmination of President
An ecological activist in Vermont has been pressing the
Bush's step-by-step move toward close support of Soviet
Bush Administration to make community recreation
President Mikhail S. Gorbachev.
paths one of its famous 1,000 points of light.
David C. Morrison
Neal R. Peirce
GOLDSCHMIDT'S LAMENT
3004
WHITE HOUSE NOTEBOOK
3008
Oregon Gov. Neil E. Goldschmidt, while criticizing
The U.S.-Soviet summit meeting in Malta showcased
President Bush, also complains in an interview about the
President Bush's diplomatic skills but didn't do much to
direction taken by his fellow Democrats.
put "the vision thing" to rest.
Dick Kirschten
Burt Solomon
IN PERSON
3006
INSIDE POLITICS
3011
With the Soviet Union such a hot topic in the press of
President Bush's euphoria about the Malta summit has
late, it's no surprise that Sovietologist Dimitri K. Simes
been tempered by caution. In that, he may be attuned to
has been on television so often.
the mood of the American public.
Rochelle L. Stanfield
Jack W. Germond and Jules Witcover
Focuses
Departments
3020
3012
OPENING THE SKIES
PEOPLE
Washington's movers and shakers
There was much scoffing when President Bush revived President Eisenhower's
"Open Skies" idea. But there could be a treaty by this time next year.
3015
David C. Morrison
OPINION OUTLOOK
Views on national security
3021
3016
BUDGETSPEAK
THE NUMBERS GAME
Data on government payrolls
Never mind reality. When Congress and the White House agree that progress
3017
is being made on the budget front, the facts don't count for much.
INFOFILE
Lawrence J. Haas
Studies, surveys and books
3022
3018
AT A GLANCE
PROSECUTOR POWER
Weekly checklist of major issues
There are hints that times may be changing for U.S. Attorneys. Courts are
3026
looking harder at the power prosecutors have acquired in recent years.
POLITICAL PULSE
W. John Moore
Schneider on politics and the public
POLITICAL REPORT
All-Purpose Loophole
Some politicians and political activists have been using tax-exempt organizations to finance
their activities. That comes close to skirting the tax code's intent.
BY RICHARD E. COHEN
tesy of a new group that runs on tax-
do is to get the information to any people
AND CAROL MATLACK
deductible dollars.
interested in redistricting," said Robert E.
The attorneys who organized the
Freer Jr., a Washington lawyer who is
L
ast year, the Republican National
group, Lawyers for the Republic Inc.,
founder and chairman of the group.
Committee (RNC) figured it needed
have served in high-level Republican
So far, however, Republicans are far
to spend at least $1 million on the massive
posts and received à $50,000 start-up loan
more familiar with the services promised
task of organizing election data before the
from the RNC. But they emphasize that
by Freer's operation than Democrats are.
states prepare their redistricting maps in
their organization is autonomous and
"We expect to use the data," said Thomas
1991. Now, the GOP plans to get some of
nonpartisan, as required for tax-exempt
B. Hofeller, director of redistricting and
that politically valuable data free-cour-
status by the tax law. "All we are trying to
list development at the National Republi-
can Congressional Committee. "There
have already been discussions."
Freer has participated in meetings with
Republicans on redistricting strategy but
has not attended any such Democratic
sessions. His initial efforts were chiefly
with the GOP because, he said, "I didn't
know many Democrats. I'm involved
with the Republican network." He wrote
to Democratic National Committee
(DNC) chairman Ronald H. Brown on
Nov. 14, inviting Democrats to use his
services, but the invitation was rebuffed.
A DNC aide called it "a disguise for
overtly Republican schemes" and said
Brown will not cooperate. (For more on
redistricting, see box, p. 2986.)
Welcome to the world of tax-exempt
organizations, the all-purpose loophole
for politicians and other citizens trying to
save dollars and cut corners. It is an in-
dustry filled with many meritorious orga-
nizations but one in which enforcement is
often lax and creative lawyers and ac-
countants can find new ways to merge
charity with politics.
Republicans aren't the only ones
who've discovered this loophole. During
the 1988 election, Senate Majority Whip
Alan Cranston, D-Calif., helped to set up
and raise millions of dollars for tax-ex-
Richard A. Bloom
empt groups to encourage voters to regis-
ter, chiefly in low-income neighborhoods
in California. Some workers in the voter
registration effort have said it was under-
Democratic National Committee chairman Ronald H. Brown
stood that their job was to register Demo-
He won't cooperate in what an aide called "overtly Republican schemes."
crats, but Cranston aides said that this
2980 NATIONAL JOURNAL 12/9/89
would have been against the organiza-
try: The number of
tions' policy.
religious, chari-
The Cranston groups have recently
table and educa-
been the focus of special attention because
tional groups-
$850,000 came from savings and loan ex-
known collectively
ecutive Charles H. Keating Jr., who has
as 501(c)(3) orga-
been accused of showering money on
nizations after the
Cranston and four other Senators so that
section of the tax
they would, in turn, help him win favor-
code that governs
able treatment from federal regulators.
their tax-exempt
The FBI is reportedly investigating. (See
status-has in-
box, p. 2983.)
creased more than
Although tax laws flatly prohibit the
50 per cent in the
use of tax-deductible contributions for
past decade to
partisan political activity, such money is
432,700. (Roughly
often used to lay the groundwork for po-
400,000 other
litical campaigns. Five candidates in the
organizations, in-
1988 presidential contest had tax-exempt
cluding a wide
groups, ostensibly doing research and
range of interest
educational activities, in the months pre-
groups and trade
ceding their campaigns. In contrast with
and professional
the candidates' campaign funds, these
associations, are
groups could receive unlimited, tax-de-
also tax-exempt.
ductible sums from contributors, and they
Unlike 501(c)(3)
were not required to disclose a penny.
groups, however,
One of the groups, founded by Republi-
their donors can-
can candidate Marion G. (Pat) Robert-
not take a tax de-
son, was accused of spending tax-deduct-
duction.)
ible dollars to recruit convention dele-
But Congress
gates. (See box, p. 2985.)
pays scant atten-
John Eisele
Further impetus to the spread of tax-
tion to this pool of
exempt groups took place in mid-Novem-
money and how it
IRS exempt organizations specialist Marcus S. Owens
ber right under the Capitol dome, when
is spent. The issue
Open political activity's "a surefire way to get examined.'
lawmakers approved a potentially huge
was taken off the
loophole in their pay raise-ethics package.
table during the wide-ranging overhaul
ing the House's impeachment investiga-
By accepting an eventual ban on hono-
that led to the 1986 Tax Reform Act.
tion of President Nixon. One of the Judi-
raria, Members of Congress agreed to
All tax-exempt groups with annual rev-
ciary Committee's three impeachment
stop pocketing this money from interest
enues of more than $25,000 are required
articles charged that Nixon sought in-
groups. But they added a new wrinkle. In
to file annual returns, and the IRS says
formation from tax returns in violation of
the future, interest groups can continue to
that because of the effective federal sub-
constitutional rights.
donate money to a Member's favorite
sidy they enjoy, tax-exempts are about
If tax-exempt groups have become the
charity, so long as the charity is sanc-
twice as likely to be audited as are individ-
ultimate sacred cow, the result has been
tioned as tax-exempt by the Internal Rev-
uals and businesses. Overt political activ-
widely accepted as legitimate policy be-
enue Service (IRS).
ity "is a surefire way to get examined if
cause many of these institutions undeni-
According to a House aide who helped
you're an exempt organization," said
ably serve the public interest. Who, after
to draft the provision, honoraria to chari-
Marcus S. Owens, executive assistant in
all, wants to tax the revenues of the home-
ties will irresistibly become a booming in-
the IRS exempt organizations technical
town church, university, Red Cross chap-
dustry. Members will receive a clear po-
division. Still, many organizations don't
ter or Girl Scout troop? A problem, how-
litical benefit by taking credit for the
publicize their activities. And each year,
ever, is that not all groups to which the
donation-and will be ensnared in the
only 2.5 per cent of exempt groups are
IRS has granted the preferred tax status
same conflict-of-interest problems posed
audited.
appear so obviously charitable.
by honoraria. The opportunity is revealed
Pressure occasionally surfaces for
One of the worst abuses was revealed in
by a National Journal review of Members'
tougher enforcement actions against tax-
1987, when conservative fund raiser Carl
1988 financial disclosure forms, which
exempt groups, said Sheldon S. Cohen,
(Spitz) Channell pleaded guilty to illegal
showed that 51 Senators and 146 House
the IRS commissioner from 1965-69 who
use of tax-deductible contributions to help
Members were founders, officers or direc-
is a tax attorney with the Washington of-
finance the Nicaraguan contras and to
tors of tax-exempt organizations.
fice of the Philadelphia law firm of Mor-
run advertisements against Democratic
gan, Lewis and Bockius. "But it dies be-
SACRED COW
House Members who had voted against
cause there are not enough revenues to
contra aid. That incident led to enactment
Many of Washington's rules do not ap-
make it worthwhile for the commis-
of a limited set of reforms later that year.
ply to the tax-exempt organizations. At a
sioner," he said. "As Willie Sutton said,
Rep. J.J. Pickle, D-Texas, who chairs the
time when the government is scratching
you go where the money is.
It's a vi-
Ways and Means Oversight Subcommit-
for every available dollar, groups eligible
cious circle. Principles come into play
tee, which prepared the legislation, had
for tax-deductible donations receive
that are never reexamined."
been a Channell target.
roughly $50 billion annually in contribu-
Adding to the status quo inertia are
Most tax-exempt groups, both in
tions that the donors claim as deductions
long-standing fears that the IRS could be
Washington and across the nation, are so
from their income-tax payments.
used to punish political opponents and
obscure or so seemingly public-spirited
And tax-exempts are a growth indus-
reward allies. Such charges surfaced dur-
that they attract attention only on the rare
NATIONAL JOURNAL 12/9/89 2981
When Are Nonpolitical Ads Political?
In seven congressional districts across the country this fall,
William W. Hamilton Jr., the director of the federation's
residents have opened their newspapers to advertisements
Washington office, said.
blasting the anti-abortion voting records of their local
Hamilton says the ads are not intended to affect the 1990
House Member.
elections. "We're not interested in [the Members'] election
"It's time we went out of our way to let him know that his
or defeat," he said. The ads are "to clarify to their
actions threaten the health and privacy of American women
constitutents how these Members are voting." An early
and don't represent the people of this area," the ads say.
draft of one ad concluded with a warning to the local Mem-
"Tell him not to do it again."
ber that "We'll turn our backs on him if he does it again."
An independent campaign by a political committee? No,
But that wording was changed to "Tell him not to do it
the ads were paid for with tax-deductible contributions to
again," Hamilton said, because the earlier version sounded
the Planned Parenthood Federation of America Inc. and its
"too electoral." The group will stop running the ads when
local affiliates. The ads appeared in the districts of Reps.
the campaign season gets under way next year, he said.
Robert K. Dornan, R-Calif., Thomas J. Tauke, R-Iowa,
Still, the ads have caused consternation, particularly in
David E. Bonior, D-Mich., Minnesota Republicans Arlan
the office of Tauke, who is running for the Senate next year
Stangeland and Vin Weber and Minnesota Democrats
against Sen. Tom Harkin, D-Iowa. Tauke is considering
James L. Oberstar and Timothy J. Penny. Each lawmaker's
whether to lodge a complaint with the Internal Revenue
name and photo are prominently displayed in the ad.
Service (IRS) or the Federal Election Commission.
Planned Parenthood plans to run similar ads against two or
Under federal law, private organizations have virtual
three other House Members whom it hasn't chosen yet,
carte blanche to run independent advertisements for or
against candidates in presidential and congressional cam-
paigns. But such ads cannot be financed with tax-deductible
contributions, and all money raised or spent for such efforts
must be disclosed to the commission.
Groups such as Planned Parenthood that accept tax-
deductible donations are flatly barred from engaging in
such advertising. Traditionally, however, the IRS has
tended to give such groups the benefit of the doubt when
questions arise.
In 1984, a liberal Washington-based group, the Youth
Project, aired a series of radio and television spots in 12
media markets around the time of the debates between
President Reagan and Walter F. Mondale. The ads, known
collectively as the Peace Media Project, criticized heavy
U.S. spending on defense, especially the Strategic Defense
Initiative. One of the TV ads, showing children on a play-
ground, urged viewers to "join the debate. Our future de-
For women, abortion is a tough decision.
pends on it." Another said: "Think about it when you vote
this November.
America can change course."
Bob Nicklas, deputy director of the group, now called
Partnership for Democracy, said the ads weren't intended
For Bob Dornan,
it was a snap.
to help Mondale and were consistent with the group's mis-
sion "to conduct charitable and educational activities that
Twice this year, our Congressman went our of
Most others in Congress aren't doctors or
Congressman Dornan:
his way to endanger the lives and privacy of
women either. But unlike our Congressman,
Whatever your personal feelings about abortion, you
are of benefit to low and moderate-income people."
women all across America. In February. he per-
they chose to respect the majority view of
were elected represent the of us. don't want
sonally asked the Supreme Court to overturn
Americans that abortion must remain private
the Supreme Court overturn Roes Wade We want
Congress te keep and legal, for
After a lengthy investigation, the IRS agreed. In a memo-
Roe Wade, the case that made abortion safe
decision, free of government interference.
American women including the poor who are victims
and legal in all fifty states. More recently, he
Our Congressman went out of his way to urge
of rape or incest.
voted against federal Medicaid help for victims
the Court to make abortion dangerous and il-
randum issued last May, the IRS said that it was "trouble-
of rape or incest too poor to afford their OWD
legal again. For every woman. No matter what
NAME
healthcare.
the circumstances. He has failed to support
some" that the ads were timed to coincide with the Reagan-
family planning programs that help reduce the
ADDRESS
Our Congressman is not doctor. So he
probably doesn't know thousands of women
need for abortions. And he turned his back on
Mondale debates and that "the candidate closely identified
CITY
STATE
zir
were maimed and killed in bloody back-alleys
women who are poor and need Medicaid help
before the Supreme Court upheld safe and legal
because of rape or incest.
with the message of the ads is Walter Mondale." But be-
abortion in 1973.
It's time we went out of our way to let him
Nor he woman. And maybe that's why he
know that his actions threaten the health and
finds so easy to dismiss the deep concern and
privacy of American women and don't represent
Planned Parenthood
cause neither Mondale nor Reagan was named in the ads,
the people of this area.
Federation of America &
outrage most women feel when politicians
Tell him not to do it again.
Orange San Bernardino Counties
the IRS said, "we reluctantly conclude [that the group]
decide to make headlines out of such intensely
1801 Broadway Santa Ana CA 92706
personal and private decisions.
Please mail the coupon.
probably did not intervene in a political campaign on behalf
These ads have been running in seven House districts.
of or in opposition to a candidate for public office."
occasions when one of them generates
home districts of seven House Members,
ruled that television and radio spots aired
controversy. But a growing roster of these
attacking their anti-abortion voting
by a tax-exempt antiwar group during the
groups have financed advertising, semi-
records. Although the federation insists
last weeks of the 1984 presidential cam-
nars or other activities that skate close to
that the ads are purely educational, they
paign did not constitute partisan political
the edge of political activity.
have all the sophistication of a campaign
activity because, though the ads appeared
In recent weeks, for example, the
appeal. (See box, this page.)
to support Walter F. Mondale's candi-
Planned Parenthood Federation of Amer-
The IRS, however, has been reluctant
dacy, they did not mention his name. And
ica Inc. has run advertisements in the
to clamp down. Last May, the agency
courts have generally barred private citi-
2982 NATIONAL JOURNAL 12/9/89
Raising Money to Register More Voters
The decision by Sen. Alan Cranston, D-Calif., to devote
substantial time and resources to a massive voter registra-
tion effort in California during the 1988 campaign probably
won't be remembered for its impact on the election.
For one thing, Democratic presidential nominee Michael
S. Dukakis lost the state, although his 48 per cent share of
the vote was greater than he had been expected to win. And
more recently, public attention has focused on the fact that
$850,000 of the more than $7 million that Cranston raised
for the voter registration campaign came from embattled
thrift executive Charles H. Keating Jr., whose dealings with
Cranston and four other Senators have prompted a Senate
ethics inquiry. (See NJ, 12/2/89, p. 2955.)
But Cranston's efforts have revived interest in an activity
that has caused debate in political circles. A web of tax-
exempt groups for which Cranston raised those millions in
1988 produced several hundred thousand new registered
voters, most of them from low-income groups that vote
Richard A. Bloom
mostly Democratic but do not turn out in large numbers.
The New York Times reported that the FBI has begun an
Sen. Alan Cranston, D-Calif.
investigation of Cranston and these tax-exempt groups,
Was his 1988 voter registration campaign partisan?
chiefly the Center for Participation in Democracy.
Kim Cranston, the Senator's son who was the center's
Several newspaper stories about the Cranston-led efforts
president and has been active in California Democratic poli-
in 1988 reported that some of the voter registration workers
tics, would not confirm the dollar amount, but he spoke
were overtly partisan. "We had 450 employees, and I'm not
proudly of the campaign's results. "This was not an organi-
surprised there were some disgruntled employees," Kim
zation to elect Democrats," he said. "We were registering
Cranston said. "I'm not aware of any partisanship."
people to vote. It's a real problem in our democracy when
The Internal Revenue Service (IRS) conducted a thor-
half the people don't vote."
ough 10-month review in 1986-87 of Project Vote, a na-
Whatever the success of Sen. Cranston's efforts, the Cali-
tional voter registration campaign that enrolled more than
fornia campaign was clearly built upon some lessons
500,000 potential voters in 13 states during 1984. The IRS
learned from earlier national voter registration activities.
concluded that the organization, although it failed to pro-
These campaigns have typically generated millions of dol-
vide some requested information, complied with the non-
lars in support from both major parties and can be critical in
partisan requirements of its tax-exempt status. The IRS
close contests. In 1984, however, several foundations at-
"said that there were no violations," Sandy Newman, direc-
tempted to use their tax-free assets to increase turnout by
tor of the Washington-based group, said. "Most groups in
targeted groups and thus increase the Democratic vote in
this field worry about not crossing the line because we know
the presidential election, according to election experts.
that we can be closed down."
About 85 foundations contributed more than $7 million
Project Vote, like the Cranston voter registration cam-
to nonpartisan voter registration activities in that year, ac-
paign, has increasingly concentrated its efforts on minor-
cording to Curtis B. Gans, director of the Washington-
ities-a recommendation that Gans had made after 1984.
based Committee for the Study of the American Electorate.
But Project Vote maintains a permanent office, while the
But much of that money, he said, was not used effectively
center, according to Kim Cranston, has significantly scaled
because of a lack of high-quality leadership and consistent
back its plans for the 1990 election.
community activity. "The effort failed not only for Demo-
Congress, meanwhile, is scheduled to consider legislation
crats but also from the view of voter turnout," Gans said.
next year that may lead to cutbacks in voter registration
Even more troubling, his detailed analysis concluded, is
activities by private groups. The House Administration
that the efforts demonstrated the need for greater oversight
Committee, with bipartisan support, has reported a bill
to prevent "violation of partisan guidelines" that tax-ex-
(HR 2190) that would automatically register voters when
empt groups must respect. Although Gans was not specific,
they receive their driver's licenses. "This bill would put
he said the goal of some foundation officials was to increase
registration law issues to rest for two generations," Gans
the Democratic vote.
said.
zens and groups from challenging an
and is one of the few Washington report-
peddling with donors, an issue raised by
organization's tax-exempt status unless
ers who monitors the tax-exempts.
the Cranston-Keating case.
they can prove that they have suffered
harm as a result.
UNANSWERED QUESTIONS
The commingling of public and private
money is another concern. Under House
"The IRS doesn't want to open the
When Members of Congress establish
and Senate rules, Members cannot use
door because there is a monster on the
their own tax-exempt organizations, a
private funds to subsidize performance of
other side," said Ed Zuckerman, who
host of other questions arise. For one
their official duties. Nor can they use their
publishes a newsletter, PACs & Lobbies,
thing, there's the possibility of influence-
office budgets for unofficial purposes. But
NATIONAL JOURNAL 12/9/89 2983
have probably generated the most public
interest in the tax-exempt sector. During
hearings in 1987, Pickle's subcommittee
reviewed the IRS's procedures for
classifying well-known church groups
such as those headed by Robertson, Jerry
Falwell and Jimmy Swaggart. Subse-
quently, the Justice Department success-
fully brought its criminal case against
evangelist minister Jim Bakker.
When he was IRS commissioner in the
late 1960s, Cohen recalled, he revoked the
tax-exempt status of a comparable group
headed by evangelist Billy James Hargis,
after concluding that its activities did not
qualify it as a church group. "That was
the last time that a religious group lost an
exemption," Cohen said.
Richard A. Bloom
More recently, some liberal 501(c)(3)
groups attracted IRS scrutiny in 1987 for
their work that year in opposition to the
Supreme Court nomination of Robert H.
Tax lawyer and former IRS commissioner Sheldon S. Cohen
Bork. An initial IRS review concluded
There aren't enough revenues to justify an IRS crackdown on tax-exempts.
that there was no substantial difference
between attempting to influence legisla-
some Members' tax-exempt groups are so
activities-an arrangement that is widely
tion-the traditional definition of lobby-
closely intertwined with their congres-
accepted on Capitol Hill.
ing-and attempting to influence Senate
sional offices that it's hard to tell whether
The two groups have been dormant for
votes on judicial nominations. But a large
the rules are being heeded.
the past few years and are now being shut
coalition of exempt groups, ranging from
Gregg W. Waddell, a former aide to
down. But arguably, they achieved a pur-
the American Civil Liberties Union to the
Rep. Newt Gingrich, R-Ga., said that
pose: Gingrich, a relatively junior Mem-
Heritage Foundation, protested loudly,
during the time he was employed in Ging-
ber, is now House minority whip, the
and the case was eventually closed with-
rich's House office, he also worked as an
chamber's second-ranking Republican.
out action.
unpaid volunteer for the American
Like many other parts of the tax law,
Opportunity Foundation, a 501(c)(3)
the rules covering tax-exempt organiza-
BIPARTISAN COVER
group that Gingrich founded in 1984 to
tions are anything but simple. Bruce R.
The bipartisan silence has been encour-
promote conservative policies. (Simulta-
Hopkins, a lawyer with the Washington
aged on the legislative front because of the
neously, Gingrich set up a separate group,
law firm of Baker and Hostetler, told the
complexity of the tax-exempt issues and
American Opportunity, that could engage
Ways and Means Committee in 1987 that
because so many members of both parties
in lobbying but could not accept tax-de-
"there really are probably 50 or 60 or 70
benefit from the services of such groups.
ductible contributions.)
different types of tax-exempt organiza-
"It's the issue from hell for the Ways and
The Gingrich organizations, which
tions" listed in section 501(c). The re-
Means Committee," a committee aide
sponsored a series of seminars and meet-
quirements for each category often leave
said. "It never goes away." Although the
ings around the country in 1984 and 1985,
considerable room for interpretation.
political wings of each party rigorously
had no full-time staffs, although a local
Those in the biggest category,
monitor each other's tax-exempt activi-
lawyer kept their records at his offices.
501(c)(3), in theory operate under the
ties, the results have essentially left cur-
Waddell, now a graduate student at Duke
strictest rules. They cannot engage in di-
rent practices unchallenged.
University, said that his volunteer work
rect or indirect political campaign activi-
In 1985, for example, a handful of
for the groups was done only during
ties or in what the code calls "substantial"
Washington lobbyists who were active
lunch hours, evenings and weekends. But
lobbying. Groups in a second category,
Democrats organized the National Legis-
he said that the groups' plans and activi-
501(c)(4), are exempt from paying federal
lative Educational Foundation, a
ties were regularly discussed in the con-
income taxes but do not qualify for tax-
501(c)(4) group whose best-known activ-
gressional office. "Newt might think of a
deductible contributions; they can engage
ity was to finance the House Democrats'
project he wanted to undertake, and if we
in lobbying and in some political activity
annual weekend conclave at the Green-
decided that the proper means was not in
so long as political action is not the princi-
brier resort in West Virginia. In return for
the congressional office," the project
pal purpose. Many Washington interest
donating $5,000-$10,000 apiece, the lob-
would be assigned to one of the two
groups are in this category, and 501(c)(3)
byists gained the right to hobnob with the
groups, Waddell said. The groups were
groups often set up companion 501(c)(4)
lawmakers. House Republicans decided
"basically just a vehicle for him to do
organizations to carry out their lobbying
that their best response was flattery, not
things,
to give him some financial re-
and political work. Tax-deductible con-
challenge; with the help of a group of Re-
sources to travel, to make speeches, that
tributions cannot be transferred from a
publican-leaning lobbyists, they have or-
he couldn't use his congressional money
501(c)(3) to a 501(c)(4), however. The
ganized similar retreats at various sites
for."
other major tax-exempt players in Wash-
outside Washington.
Dan Swillinger, a Washington lawyer
ington are in the 501(c)(6) category,
When the Ways and Means Committee
who oversees the Gingrich organizations'
chiefly trade associations. They operate
took action in 1987 to remedy several
finances, likened the arrangement to a
under the same restrictions on lobbying
problems in this area, it focused on rela-
Member's using official funds for some
and political activity as do 501(c)(4)s.
tively tangential issues such as disclosure
activities and campaign funds for other
The activities of television evangelists
of officers and budgets by the tax-ex-
2984 NATIONAL JOURNAL 12/9/89
Save $70 on National Journal
New Subscribers Only
Special Introductory Offer!
Check One:
Check or Credit Card
Bill Me
One Year (50 issues)
$554 (Save $70!)
$624
(D.C. residents add 6% sales tax.)
6 Months (25 issues)
$277 (Save $35!)
$312
Payment enclosed
Charge my:
Visa
MasterCard
American Express
Bill me
Account number
Exp. date
Signature
Date
National
Name
Title
Organization
Journal
Business phone
Address
What the Leaders Read.
City, State, Zip
1730 M Street, NW
Washington, DC 20036
Please check the one box which best describes the field in which you work:
Federal Government:
Foreign Government
Media
Executive Office of the President
Business & Industry, including Law,
Think Tank, Research Organization, Educational
Cabinet Dept. or Federal Agency
Medicine, Consulting, etc.
Institution
Congress
Trade Union, Professional Association,
Library (academic or public)
State or Local Government
Political Organization, or Interest Group
Other:
For faster service, call TOLL-FREE: 1-800-444-4078. (In D.C., call 857-1422.)
NO POSTAGE
NECESSARY
IF MAILED
IN THE
UNITED STATES
BUSINESS REPLY MAIL
FIRST CLASS MAIL PERMIT NO. 10574 WASHINGTON, D.C.
POSTAGE WILL BE PAID BY ADDRESSEE
NATIONAL JOURNAL, INC.
1730 M Street, N.W.
Washington, D.C. 20077-6368
Tax-Free Candidate Endorsements
It wasn't the letter that bothered some of Marion G. (Pat)
Robertson's critics. It was the letterhead.
Soon after his June 1986 delegate sweep at the Michigan
Republican Convention, Robertson crowed in a mailing to
supporters: "The Christians have won! We educated,
trained, motivated and outnumbered the delegate appli-
cants registered through the efforts of both Vice President
George Bush and U.S. Congressman Jack Kemp com-
bined!"
What bothered the critics was that the letter was sent on
the stationery of the Freedom Council, a Robertson-
founded group that was supported by tax-deductible con-
tributions and was not supposed to endorse or oppose can-
didates.
Robertson shut down the Freedom Council later that
year, but not before the group had attracted a deluge of
complaints about alleged violations of its tax-exempt status.
Most of the complaints focused on its activities in Michi-
gan, where prospective presidential candidates were court-
ing state Republican convention delegates who would later
select Michigan's Republican National Convention dele-
gates. Although Freedom Council officials insisted that
their group was nonpartisan, in the weeks before the state
convention it sponsored several rallies at which Robertson
was the only political candidate. It also sponsored a joint
fund-raising event with Robertson's political action com-
mittee.
Moreover, reporters who obtained tax returns of Robert-
son's Christian Broadcasting Network (CBN)-itself a tax-
exempt organization that qualified for tax-deductible con-
Richard A. Bloom
tributions-showed that CBN had provided most of the
Freedom Council's financing.
1988 presidential hopeful Marion G. (Pat) Robertson
Robertson's was probably the most controversial, but it
His tax-exempt group may have aided his campaign.
was not the only tax-exempt organization operated by a
presidential contender in 1988. Kemp and Democrats
campaign as issues director and deputy issues director. The
Bruce E. Babbitt, Gary Hart and Sen. Paul Simon of Illinois
group later underwent an IRS audit and was given a clean
also had tax-exempt groups-all qualifying for tax-deduct-
bill of health, Maddy said. Hart's and Simon's groups also
ible contributions-ostensibly formed to research policy
were closed after their candidacies began.
matters or educate the public. (Two other candidates, Sen.
Robertson's Freedom Council was closed in October
Robert Dole, R-Kan., and Democrat Jesse Jackson, also
1986, but concerns linger. Former officials of the group say
had set up tax-exempt groups, but neither appeared to be
that the IRS has been investigating its records, although the
involved in matters of national policy or politics. Dole's
IRS will neither confirm nor deny such an investigation.
group encourages employment of the disabled, and Jack-
In the meantime, Robertson has created yet another tax-
son's Operation PUSH focuses on civil rights and the edu-
exempt group. Early last month, he sent a mailing announc-
cation of minority students.)
ing the formation of the Christian Coalition, a group that he
Kemp abruptly resigned from his organization, the Fund
said would "force America to face the moral issues that
for an American Renaissance, in 1986 after a candidate for
threaten to destroy us." The coalition "won't endorse any,
Kemp's House seat in upstate New York complained to the
candidates or political parties-but we will speak out on
Internal Revenue Service (IRS) that the tax-exempt group
issues-and we'll make sure candidates for office at every
was paying for many of Kemp's political activities.
level know how we stand-and how we'll vote," the letter
But the others attracted little controversy. Typical was
said. "We'll organize chapters in every state, every congres-
Babbitt's group, American Horizons. Established in 1985,
sional district and, God willing, every precinct in America."
shortly before Babbitt left the Arizona governor's office, at
The letter's return address was a post office box in Chesa-
its peak it employed a staff of 10 who cranked out reports on
peake, Va., home of CBN, but CBN officials said they had
issues ranging from welfare reform to foreign policy. Jim
no information on the group. They referred questions to
Maddy, who served as the group's director and is now
Robertson, who was not available for comment. The Chris-
executive director of the League of Conservation Voters,
tian Coalition literature describes the group as tax-exempt
said that when American Horizons was set up, he had no
under section 501(c)(4) of the tax code, which means that it
idea that Babbitt might run for President. American Hori-
can engage in some lobbying and political activities but that
zons closed up shop as soon as Babbitt announced his candi-
political activities cannot be its primary purpose and that
dacy in 1987, but two staff members joined the Babbitt
contributions will not be tax-deductible.
NATIONAL JOURNAL 12/9/89 2985
For the Republic or for the Republicans?
plans to provide them with extensive redistricting data; no
such session was held for Democrats.
Freer said his group plans to raise $4 million-$5 million
in tax-deductible donations during the next two years. But
the group has no staff, and Freer conducts the project's
work out of the Washington office of the New York City
law firm of Patterson, Belknap, Webb & Tyler, where he is a
partner. An important early source of the organization's
funds was a $50,000 loan from the RNC, Freer said.
Republican officials have also given verbal encourage-
ment to Freer's group. "I've talked with Freer about what
they do, and we decided that their work is consistent with
our goal of full participation in redistricting," said Benja-
min Ginsberg, who became RNC chief counsel this year. "If
somebody thinks that allowing minority groups to gain
strength in Congress and state legislatures is perceived as
pro-Republican, I think that's great." He said the RNC has
provided "technical assistance" to Freer's' group.
Mary Matalin, the RNC's chief of staff, said she was not
aware of the $50,000 loan. She noted that the RNC's 1990
budget includes $1 million for "data collection" but that if it
is cheaper to obtain redistricting data elsewhere, "it would
be silly not to take advantage of it."
A well-placed Republican source said several RNC offi-
cials "encouraged Freer's ideas at an early point" and
John Eisele
helped him to organize the RNLA. "They are looking for a
device to use tax-deductible money in an innovative way to
benefit the Republican Party," the source said. One of
Lawyers for the Republic chairman Robert E. Freer Jr.
Freer's first efforts was a contract with a direct-mail subsid-
He says that his intentions were purely nonpartisan.
iary of R.R. Donnelly, the giant printing company, to pro-
vide recent election data on a precinct level.
Robert E. Freer Jr. said his intentions were purely nonparti-
Freer insisted that "you can have a legitimate tax-exempt
san when he filed an application in 1988 with the Internal
group that may support one party disproportionately. That
Revenue Service (IRS) to gain tax-exempt status for Law-
doesn't make it any less worthy as a research group."
yers for the Republic Inc., a group he had organized. But
Some Democrats said they have little reason to cooperate
some aspects of the group's operations suggest that it should
with Freer, if only because in most states, the party already
be called Lawyers for the Republicans.
has the political data he is compiling. "We have done a
After receiving the IRS's approval, Freer decided that his
better job at developing precinct data over the years than
first large project would be "Fairness for the '90s," whose
have the Republicans," said Mark H. Gersh, Washington
main objective is to provide data to anyone who wants to get
director of the National Committee for an Effective Con-
involved in the highly political art of redistricting. "We
gress, a political action committee (PAC) that works closely
want to allow the NAACP to play with the big boys," said
with Democrats. A Democratic consultant said that if the
Freer, who explained that one of the project's objectives is
GOP has to rely on data obtained by Freer's group, "that
to help minority groups become involved in redistricting.
would be the greatest thing for us since sliced bread."
Republicans insist the redistricting project operates sepa-
Republicans acknowledged early this year that because of
rately from the party. But several things don't quite add up,
past budget shortfalls, the party needed to spend money to
not least of which is that many political insiders consider
improve its political data. "Whenever you had to cut areas
"nonpartisan redistricting" to be an oxymoron.
in the [RNC] budget, this has been one of the areas that has
Freer has impeccable Republican credentials. He
been cut," said Rep. William M. Thomas of California, co-
founded the Republican National Lawyers Association
chairman of the House Republican leadership task force on
(RNLA) and was chairman of Lawyers for Reagan-Bush in
reapportionment. One way to raise the money, he said,
1984. Serving on the board of Lawyers for the Republic,
would be to "set up a nonpartisan foundation."
with Freer, are Robert J. Horn (who chairs the RNLA) and
For their part, Democratic leaders are curious, but they
Dan Swillinger, Washington lawyers with strong Republi-
have-said that they know little about Freer and his group.
can connections, and Morris I. Liebman, a Chicago lawyer.
"There is no problem with a tax-exempt group interested in
At the RNLA's second annual convention on Nov. 17-
redistricting," said Rep. Beryl F. Anthony Jr. of Arkansas,
18, Freer joined three top Republican National Committee
chairman of the Democratic Congressional Campaign
(RNC) aides and a former Reagan Justice Department offi-
Committee. "So long as the group counsels all parties, I
cial in a two-hour panel on redistricting. At this summer's
have no quarrel. But if it is thinly veiled in a partisan sense
convention of the National Conference of State Legisla-
to get a tax-exempt status, it's not too late for the IRS to
tures, national Republican officials told party legislators of
review it. I promise I'll monitor it closely."
2986 NATIONAL JOURNAL 12/9/89
empts. The panel left more-basic issues
route for their regular campaign contribu-
states, but none is affiliated with a Mem-
untouched.
tors. Senate Minority Leader Robert
ber.
Congress also addressed in that law the
Dole, R-Kan., in recent years has been
And the University of Utah has solic-
growing. trend of presidential candidates'
promoting the Dole Foundation, which
ited more than $1.7 million in tax-deduct-
creating tax-exempt groups. It agreed to
helps disabled individuals to find employ-
ible contributions for its Garn Institute of
impose stricter limits on tax-deductible
ment. Ellen S. Miller, the director of the
Finance, named after Sen. Jake Garn, R-
money used for political activity. A key
nonpartisan Center for Responsive Poli-
Utah, ranking minority member of the
solution was a 10 per cent excise tax, not
tics, which has studied the activities of
Banking, Housing and Urban Affairs
to exceed $5,000, on offending cam-
tax-exempt organizations affiliated with
Committee. Garn Institute officials say
paigns. A Washington tax lawyer, who
politicians, said that she found "a remark-
that the Senator does not directly solicit
did not want to be named, said that this
able overlap" in the list of contributors to
contributions but has spoken at fund-rais-
solution "may make it easier to abuse" the
the foundation and to Dole's Senate cam-
ing dinners-and virtually all the money
law because it implicitly invites broad
paign funds.
given to the institute so far has come from
abuses if the candidate is willing to pay
The Cranston-Keating case is one of
banking and savings and loan interests
the fine. But the IRS's Owens noted that
several in which relationships between
under the Banking Committee's jurisdic-
the law gave the agency new authority to
Members of Congress and donors to tax-
tion.
crack down by obtaining injunctions
exempt organizations have come under
But tax-exempt groups, unlike PACs
against groups that engage in flagrant ac-
scrutiny recently. In July, The Washing-
and campaign committees, aren't re-
tivity on behalf of a candidate.
ton Post disclosed that Rep. William L.
quired to disclose their donors. That has
The Democratic Congressional Cam-
Dickinson, R-Ala., the ranking minority
caused some grousing among PACs.
paign Committee has kept a close eye on
member of the Armed Services Commit-
"We're out there naked for analysis, while
the activities of Gingrich and has actively
tee, had raised money from defense con-
all this other stuff is going on," said Ste-
publicized them. It also filed a Federal
tractors to support the tax-exempt Insti-
ven F. Stockmeyer, executive director of
Election Commission (FEC) complaint in
tute for the Common Defense, which is
the National Association of Business
October 1988 against Republican Mel
run by Anthony S. Makris, a longtime
PACs.
Hancock during his campaign for an open
friend and business partner. The institute
As pressure grows to rein in campaign
House seat in Missouri, saying he had im-
has carried out few of its announced
spending and outside income to Members
properly accepted a campaign contribu-
plans, which included opening a Wash-
of Congress, the importance of well-
tion from a taxpayers' watchdog group
ington office and starting a political ac-
placed charitable contributions is likely to
under his control; 11 months later, and
tion committee (PAC), but paid Makris at
increase, too. "Right now, it's gotten to be
after winning election, Hancock agreed to
least $105,000 in 1988 and provided hon-
such an overlay [between political and
pay a $2,000 penalty to the FEC.
oraria to several Members of Congress
charitable giving]
your contingency
The National Republican Senatorial
last year, The Post reported. Makris failed
fund for nonprofit giving has to be as big
Committee, for its part, conducted an ex-
to return repeated telephone calls from
as your PAC," said Jane Scott Brown,
tensive review in 1987-88 of Citizen Ac-
National Journal.
who heads a Washington fund-raising
tion, a liberal Chicago-based 501(c)(4)
House Armed Services chairman Les
firm. "Every nonprofit puts a Congress-
group that has moved increasingly from
Aspin, D-Wis., has established the Aspin
man on their committee. That's the first
the legislative arena to electoral politics.
Procurement Institute, a Wisconsin-based
thing I think of with a nonprofit client-
At the instigation of Sen. Robert W. Kas-
group that helps local small businesses se-
how can I work in some political angle?
ten Jr., R-Wis., the committee in June
cure defense contracts. The group is fi-
That's the name of the game in town."
1988 filed complaints with the IRS and
nanced partly by business donations and
the FEC. (See NJ, 6/11/88, p. 1550.)
partly by a Defense Logistics Agency
Research assistance by Gale Mitchell and
There has been no response from those
grant. Similar groups operate in other
Tanya A. Zielinski
agencies to the complaints; customarily
the agencies do not report to the com-
plainant or to the public until they have
completed their inquiries.
In the meantime, Kasten this year set
up his own tax-exempt group. The Legis-
lative Studies Institute brings college stu-
dents and others interested in seeking jobs
on Capitol Hill to Washington for four
and a half months of training. Enrollees
pay $1,500 tuition, but the institute ex-
pects to raise $500,000 this year to subsi-
dize its operations. Its staff consists of two
former Kasten aides, and fund-raising is
overseen by Herman Pirchner, a Wash-
ington consultant who has raised money
for Kasten and other GOP candidates.
Pirchner declined to identify major do-
nors to the institute, but said most of the
money comes "from entities that have not
given 2 cents to any Kasten campaign."
ALTERNATIVE ROUTE
Richard A. Bloom
But for other politicians, a tax-exempt
House Minority Whip Newt Gingrich, R-Ga.
organization can become an alternative
His tax-exempt groups paid when congressional funds couldn't be used, an aide said.
NATIONAL JOURNAL 12/9/89 2987
Changing Suing Dictators
National A, 1989/NO.
under Company
Changing Suing ational Dictators Company
urnal
Town
Changing Suing Dictators Company
ND GOVERNMENT
FEB. 4, 1989/NO. 5
rnal
UMOL
THE WEEKLY ON POLITICS AND GOVERNMENT
NMENT
FEB. 4, 1989/NO.
Judge Harold H. Greene
dge Harold H. Greene
The Bell Ringer
nger
d.H.Greene
A Kinder, Gentler
Subscription
For government subscribers only
As a government official, you know that
JOURNAL gets it - without photocopying or
NATIONAL JOURNAL is your most important
suffering the uncertainties of a routing slip.
source of nonpartisan information on the
Now, every government subscriber can receive
policy-making process, government-wide.
two additional copies of NATIONAL JOURNAL
Copies of NATIONAL JOURNAL are among the
every week, as part of their basic subscription.
most guarded, most sought-after publications
To take advantage of this special
in your office.
National
offer for government subscribers only,
We want to make sure everyone
or for more details, call toll-free,
in government who needs NATIONAL
Journal
1-800-444-4078. In D.C. call 857-1422.
What the Leaders Read.
ENVIRONMENTAL REPORT
Ahead of the Feds
States are seizing the initiative from Washington on a number of environmental policy fronts,
causing worried industries to seek uniform federal standards.
BY MARGARET E. KRIZ
environmental laws being adopted by the
control standards by adopting Califor-
states. As more states enact such legisla-
nia's tough emission control standards for
A
bout 100 chemical industry officials
tion, they increasingly are setting the na-
new automobiles.
jammed into a small conference room
tional environmental agenda.
"That had a big impact on Congress,"
at the Washington Hilton last month for
The states' machinery began to gear up
which is in the process of rewriting the
fresh-from-the-front reports on environ-
when federal regulatory activity virtually
1970 Clean Air Act, said an aide to Rep.
mentalists' latest maneuvers at the state
ground to a halt under the Reagan Ad-
Henry A. Waxman, D-Calif., chairman of
level and industry's potential defenses
ministration. The void left by the cutback
the Energy and Commerce Subcommittee
against them.
of federal environmental controls was
on Health and the Environment. "Cali-
William P. Buckley, state and local
filled by state governments, which re-
fornia and the northeastern states are 20-
government relations manager for East-
sponded to mounting local concerns by
30 per cent of the auto market," the aide
man Kodak Co. of Rochester, N.Y., ad-
adopting an array of measures dealing
said. "Once they went forward, it made it
vised chemical firms to set up or beef up
with groundwater pollution, pesticides,
a lot easier to set the standard on the
their state lobbying forces and to extend
recycling, solid waste disposal and haz-
federal level because industry's going to
their campaigns into key trendsetting
ardous waste transportation and disposal.
have to meet the requirements in the
states-California, Florida, Georgia, Illi-
Some state actions are clearly defining
other states anyway."
nois, Massachusetts, New Jersey, New
federal policy. A striking example came
Other controls adopted by the states
York, North Carolina, Pennsylvania and
this summer when eight New England
are having an indirect impact on federal
Texas-even if the companies don't have
states effectively set national air pollution
policy as states put pressure on the federal
major facilities there.
Ralph D. Murphine, a Washington po-
litical consultant with Murphine &
Walsh, suggested that the corporate offi-
cials beat back state environmental ballot
initiatives by enlisting sympathetic foot-
soldiers, such as elderly stockholders, to
carry the companies' message to the vot-
ers in television advertisements. "The
worst possible thing to do," Murphine
said, "is to say, 'Hello, I'm with the chem-
ical company, and I've come here to talk
to you about toxic waste.'
Geoffrey Hurwitz, director. of state
government relations for Rohm and Haas
Co., a Philadelphia-based chemical com-
pany, warned that conflicting state regu-
lations are causing "a legal vulcanization
threat that, in the environmental arena,
we ignore at our peril." Hurwitz added:
"The reason Lincoln went to war was to
keep the Union whole."
The us-versus-them strategy session
(part of a Chemical Manufacturers Asso-
ciation conference titled "Committed to
Global Concerns") was a sign of indus-
try's increased concern about the blizzard
of innovative and sometimes stringent
States are enacting their own laws to clean up toxic wastes.
NATIONAL JOURNAL 12/9/89 2989
Building Up Pressure at the Grass Roots
the groups are beginning to work as an alliance to push
national issues, with the long-term goal of activating their
widespread memberships to create a national environmen-
tal movement. "We're just beginning to see the first sprouts
of a national movement here in this country," said C. Wil-
liam Ryan, toxics policy specialist for the state Public Inter-
est Research Groups. "Where it goes with the energy that's
building will depend on the efforts to focus it and translate it
into something political." Ben Gordon, Midwest toxics co-
ordinator for Greenpeace Action, added: "Maybe we flatter
ourselves, but we think this is the biggest thing since the
civil rights movement."
The five groups are:
Public Interest Research Groups (PIRGs). This network
of research and advocacy organizations began at the state
level 20 years ago and has since expanded to more than 20
states. Five years ago, the state groups formed the U.S.
Public Interest Research Group in Washington, which
works on federal issues that correspond to issues the groups
have pioneered at the state level. Members work on envi-
ronmental, health and consumer matters; they helped get
waste reduction laws in Massachusetts and Oregon.
Clean Water Action Project. The 18-year-old environ-
Richard A. Bloom
mental lobbying group is made up of 26 programs across
the nation. It centers on water pollution-related issues, such
as cleaning up Chesapeake Bay, but is also actively pushing
legislation covering ozone depletion, global warming and
solid waste. The group's national office is in Washington.
Clearinghouse executive director Lois M. Gibbs
Citizens Clearinghouse for Hazardous Waste. Based in
She had to leave her home in the Love Canal (N. Y.) area.
Arlington, Va., the clearinghouse was formed by Gibbs in
1981 after she and her neighbors were evacuated from the
Just as national environmental groups were instrumental in
Love Canal chemical dump at Niagara Falls, N.Y. Now
pushing Congress to adopt federal environmental laws in
affiliated with about 7,000 grass-roots groups, the clearing-
the 1970s, a small group of citizens coalitions has been
house provides educational information, community or-
involved in winning tough environmental controls on the
ganizing help and scientific backup for citizens tackling
state level in the 1980s.
waste and waste-related pollution problems.
In some cases, national environmental groups-notably
National Toxics Campaign. Formed in 1984, the group
the Sierra Club, the Natural Resources Defense Council
grew out of a coalition of grass-roots activists pushing the
Inc. and the Environmental Defense Fund-have worked
reauthorization of the 1980 superfund law. The member-
with grass-roots groups to push for new state laws. And
ship includes community groups fighting the siting of solid
some states have their own environmental organizations
waste dumps, organizations of persons exposed to toxics
that have championed specific legislation.
and family farmers. Headquartered in Boston, it provides
But nationwide, five groups stand out as the most locally
educational, organizational, technical and legal assistance
oriented-industry officials call them radical-wing of the
to citizens groups in eight states.
environmental movement. The groups have helped local
Greenpeace Action. After years of being called on to help
residents fight for water, pesticide and hazardous and solid
local citizens groups battle chemical pollution, Greenpeace
waste controls. "People have successfully beaten back land-
International, based in Amsterdam, in February formed
fill after landfill, not because there's any laws that prevent
Greenpeace Action, a separate education and lobbying
them from being built, but because they're opposed to it at
group, to push for environmental legislation at the state and
the local level," said Lois M. Gibbs, executive director of
local levels. It plans to accelerate its environmental drives in
the Citizens Clearinghouse for Hazardous Waste. Some of
several targeted states next year.
government to take similar action or as
in an interview. Specifically, he said, the
in scope and continue to do so," said
industry goes to Congress in search of
chemical industry would like to see uni-
Frederick R. Anderson, dean of the
uniform federal laws to replace the patch-
form federal controls on such things as
American University's Washington
work of conflicting state requirements.
hazardous waste transportation and dis-
School of Law.
"I'm arguing for a more assertive fed-
posal.
But Congress is less inclined than it has
eral government in terms of preemption
The worldwide trend is "toward more-
been in the past to impose a uniform fed-
issues and having the guts to say that in
centralized approaches to environmental
eral law on the states. In November, for
certain areas, it make sense to have na-
problems, in part because markets have
example, Congress adopted oil spill liabil-
tional environmental laws," Hurwitz said
become more national and international
ity and cleanup legislation that allows
2990 NATIONAL JOURNAL 12/9/89
states to keep their stricter liability con-
high level of toxic industrial air pollut-
ambitious set of environmental control
trols. (See NJ, 12/2/89, p. 2931.)
ants. An alarmed Jefferson County
laws.
"The traditional government model
Health Department appealed to local in-
By the late 1970s, however, Congress
was that if the states begin to legislate,
dustries to cut production, in the hope
had addressed the most visible environ-
then the [industry] interests affected
that reduced emissions would abate the
mental concerns, and industry groups
would scream "Uncle'-basically, they
problem. But when five of the largest
were becoming more adept at lobbying
scream 'Uncle Sam,' said Sen. Joseph I.
firms declined to take action, local offi-
Congress. "Industry had gotten its act to-
Lieberman, D-Conn., a former Connecti-
cials turned to the federal Environmental
gether by that time, and therefore you saw
cut attorney general. "They'd say, 'OK,
Protection Agency (EPA) for help.
more laws requiring regulators to impose
we're going to go as far as these states
Within hours, EPA officials obtained a
cost-benefit analyses" before the govern-
have asked us, but please make it a na-
temporary injunction-the first ever im-
ment could take action against a company
tional standard,' " he said. "Now, the
posed under the Clean Air Act-halting
or product, according to C. William
pressure is not only to have a national
production at the city's largest plants. A
Ryan, toxics policy specialist for the state
standard, but to allow states to go be-
day later, after strong winds had swept
Public Interest Research Groups, a coali-
yond." The pace of state environmental
the pollutants out of the area, the injunc-
tion of state advocacy groups.
action has picked up so fast that "the state
tion was lifted.
The Reagan years brought a new em-
tail is wagging the federal dog," Lieber-
This September, Alabama state officials
phasis on federalism and drastic cuts in
man added.
took their own aggressive action against
national spending for environmental pro-
President Bush, who campaigned on a
what some perceived was a major threat
tection. Some policy makers in Washing-
promise that he would be the Environ-
to the state's environmental health. Gov.
ton expected the states to follow the fed-
mental President, has tried to take back
Guy Hunt notified 22 states and the Dis-
eral lead and reduce their regulatory
the policy momentum from the states. His
trict of Columbia that they could no
burden on industry, said Blaine Liner, di-
Administration, for example, developed
longer ship their hazardous waste to an
rector of the Urban Institute's state policy
its own Clean Air Act amendments pack-
Alabama commercial hazardous waste
center. "There were those that felt that by
age. The Administration also proposed
landfill, one of the few still operating in
giving all of this responsibility to the
legislation that would allow dangerous
the nation. The banned states were those
states under devolution, the states
agricultural chemicals to be taken off the
that had no hazardous waste treatment or
wouldn't do anything, and that would
market more quickly, but also would al-
disposal facilities. Alabama's action was
have meant less government all around,"
low minute amounts of carcinogenic pes-
spurred by local fears that the state was
Liner said. "That didn't happen."
ticides on food and would preempt state
fast becoming the nation's toxic waste
Instead, the states became the "labora-
pesticide-residue standards.
dump.
tory of democracy" envisioned by former
Bush's cautious approach hasn't taken
The landfill owner, Chemical Waste
Supreme Court Justice Louis D. Bran-
away the lead from some state officials
Management of Oak Brook, Ill., and the
deis. During the 1980s, many states have
who are pushing for tighter environmen-
Washington-based National Solid Wastes
taken increasingly bold steps in the name
tal controls. Nor has it placated the ex-
Management Association
panding network of grass-roots environ-
have filed suit in U.S. Dis-
mental groups that advocate radical
trict Court for the North-
changes at state and local levels. (See box,
ern District of Alabama
p. 2990.)
charging Alabama with vi-
Politicians are beginning to recognize
olating the interstate com-
the power of the environmental vote, ac-
merce clause of the U.S.
cording to Lois M. Gibbs, executive direc-
Constitution.
tor of the Citizens Clearinghouse for Haz-
"We think these provi-
ardous Waste in Arlington, Va. "If you
sions are blatantly uncon-
look at the election in November, you see
stitutional, but we also
how people are making change," said
think they are completely
Gibbs, who gained fame for organizing
contrary to public inter-
her neighbors at the Love Canal (N.Y.)
est," association president
hazardous waste site. "The environment
Allen Moore said. "We
and women's issues are the top two issues
think EPA ought to be the
in this country. As a result of that, state
ones leading the fight here.
and federal legislators are going to be
Superfund is a federal pro-
passing laws that protect public health
gram, and if you really
and the environment. They don't have
want to clean up these sites,
any choice. It's either that, or they're go-
you have to have some
ing to have to sell used cars somewhere."
place to take this hazard-
As for industry's efforts to override lo-
ous waste. There aren't
cal environmental controls, Carl Pope,
very many places."
deputy conservation director of the Sierra
The two scenarios show
Club, said: "I think the tide in the Con-
what a difference 18 years
gress is definitely moving against federal
has made in the environ-
preemption of state environmental pro-
mental protection arena. In
grams. They can try, but I think they're
the early 1970s, the focus
whistling in the wind."
was on Washington. Ener-
TAKING THE INITIATIVE
gized by the national envi-
Richard A. Bloom
ronmental movement, the
On Nov. 18, 1971, a stagnant air mass
federal government estab-
Sen. Joseph I. Lieberman of Connecticut
blanketed Birmingham, Ala., trapping a
lished EPA and enacted an
"The state tail is wagging the federal dog.'
NATIONAL JOURNAL 12/9/89 2991
HOUSING REPORT
Kemp's Crusade
The Secretary wants to turn the Housing and Urban Development Department into an
antipoverty agency, and the Bush Administration has bought many of his ideas.
BY CAROL F. STEINBACH
In keeping with Kemp's goal to refocus
The package-Homeownership and
HUD's mission, all but 2 of the 12 initia-
Opportunity for People Everywhere
J
ack F. Kemp spent most of his first
tives in the plan are targeted to the poor
(HOPE)-is projected to cost $6.8 billion
year as Housing and Urban Develop-
or to the neighborhoods where they live.
over three years. The total includes $4.2
ment (HUD) Department Secretary de-
The major exception is a proposal to per-
billion in direct spending and $2.6 billion
fending his beleaguered agency and engi-
mit first-time homebuyers to withdraw as
in revenues lost to the Treasury because of
neering deep management reforms. Now
much as $10,000 from individual retire-
the tax incentives. Kemp says the costs,
he wants to make HUD the focal point for
ment acccounts and similar retirement
which would add to the federal deficit,
launching a new national war on poverty
plans, with no tax penalty, for down pay-
would not be offset by reductions in other
in the 1990s.
ments on homes.
federal housing programs. He contends
Kemp seeks to turn HUD, under a Re-
There are also proposed reforms of the
that new revenues could be generated by a
publican Administration, into an antipov-
Federal Housing Administration (FHA),
cut in federal capital gains taxes, a move
erty agency serving a constituency that
which suffered record-high default levels
both he and Bush strongly endorse. Kemp
his party has frequently been accused of
in 1988. The Administration plan would
also says the program could be financed
overlooking: the poor. Kemp would like
tighten FHA oversight, eliminate several
through additional revenues that will ac-
to end HUD's long-standing reliance on
programs and restructure the "co-insur-
crue to the Treasury from growth in the
private developers to build housing and
ance" program, which was the target of
U.S. economy.
target more federal resources to tenants'
heavy losses and abuse during the Reagan
Representatives across the housing
groups and nonprofit community devel-
years.
spectrum-from advocates for the poor to
opment corporations instead.
He wants to refocus federal
housing programs to promote
home ownership for low-income
Americans and economic devel-
opment and job creation in dis-
tressed urban areas.
On Nov. 10, President Bush
announced a housing and urban
economic development package
that closely mirrors Kemp's
ideas. The centerpiece is $2.1
billion in grants over the next
three years to tenants' groups,
nonprofit organizations and lo-
cal public housing authorities to
convert public housing units
and other HUD-owned apart-
ments to tenant-owned housing.
The Bush Administration pro-
posal would also set up 50 enter-
prise zones in depressed areas-
an approach Kemp has advo-
cated since 1980. Businesses in
the zones would be exempt from
Richard A. Bloom
capital gains taxes and would
get a tax break for hiring low-
Housing and Urban Development Secretary Jack F. Kemp
wage workers.
His war on poverty borrows themes from the Great Society era.
2994 NATIONAL JOURNAL 12/9/89
Realtors and home builders-praised
A likely topic for debate is that both the
housing that's going to keep people in
Bush for putting forth a plan that ac-
House and Senate bills would finance new
poverty forever. Our belief is that poor
knowledges a strong federal role in solv-
programs to construct more rental hous-
people don't want to be poor. They will
ing national housing problems. Many of
ing for the poor; the Bush plan would not.
take advantage of opportunity when it's
these groups were frustrated during the
For Kemp, the HOPE proposals were
there. But there's a reason why they're
Reagan years by what they perceived to
interpreted as a clear indication he has
poor, and that's because they somehow
be deep antipathy to housing programs.
accumulated some influence in an Ad-
have opportunities blocked or they're not
"Kemp's got the President talking about
ministration that's under heavy pressure
being given the education or training or
housing in a way we haven't heard Presi-
to hold down spending. "The career staff
assistance they need to move to self-suffi-
dents talk in years," said James W. Rouse,
at OMB [Office of Management and Bud-
ciency."
the former developer who chaired a na-
get] continues to show hostility to hous-
Some wonder why Kemp would resur-
tional housing policy task force in 1987
ing, so for Kemp to get a major package
rect the notion of a war on poverty even as
and now chairs the Enterprise Founda-
through the Administration was a real
LBJ's war comes under harsh criticism
tion in Columbia, Md.
achievement," Campbell said.
for its alleged failures. The objectives
But many observers also question how
Kemp also persuaded the Administra-
aren't that different, according to S. Anna
effective the President's measures would
tion to endorse a three-year extension of
Kondratas, HUD's assistant secretary for
be. According to housing analysts, the na-
the low-income housing tax credit, which
community development and planning.
tion faces a lengthening list of woes con-
was set to expire on Dec. 31. In congres-
"The goals of the Great Society were to
fronting millions of households from the
sional testimony last spring, Kemp
give people a hand-up, to use economic
bottom to the middle of the economic lad-
strongly endorsed the tax credit. At the
development and job training and educa-
der. The problems range from
homeless people, estimated by
the Urban Institute at about
600,000, to public housing,
where many projects are
plagued by drugs, violence and
poor maintenance and manage-
ment. The supply of rental
housing that's cheap enough for
the poor to afford is fast dwin-
dling, analysts say, even as the
number of poor people rises. A
Massachusetts Institute of
Technology study predicts that
as many as 18 million Ameri-
cans could be homeless or on
the verge of homelessness in 16
years if present trends persist.
And because of high mortgage
rates and rising home prices,
home ownership rates fell dur-
ing the 1980s for the first time
since the Depression.
"The general thrust of the
Richard A. Bloom
President's proposals is very sal-
utary and a big step forward,"
A scene at a shelter for the homeless; Kemp says rent controls aggravate the problem.
said Barry Zigas, president of
the Washington-based National Low In-
same hearing, Treasury Department offi-
tion tools to give poor people opportunity
come Housing Coalition. "But when you
cials opposed it. Congress, as part of the
and hope for advancement," she said in
look at the real results that might flow,
budget reconciliation package that was
an interview. "However, because of politi-
they're puny when compared to the
adopted in November, approved nine
cal deal cutting and the exigencies of bu-
need."
months' worth of the tax credit for next
reaucracy, most of the programs became
On Capitol Hill, where House and Sen-
year, through Sept. 30.
more 'handouts' than 'hand-ups,' and
ate committees are considering omnibus
many were ineffective."
bills to overhaul federal housing pro-
POWER TO THE POOR
Kemp has long held that the best way
grams, the Administration's proposal
In seeking to launch a new war on pov-
to attack poverty is to ensure that the
could break the logjam that stymied re-
erty, Kemp borrows several themes from
national economy is strong. But unlike
form during the Reagan years. "The Ad-
the war on poverty launched 25 years ago
many conservatives of the Reagan era, he
ministration's proposal greatly increases
by Lyndon B. Johnson. Kemp stresses,
does not subscribe to the belief that
the likelihood we'll have a major housing
for example, "empowerment of the poor,"
growth will automatically "trickle
bill next year," said W. Donald Campbell,
a theme also popular in the 1960s.
down." Kemp champions a strong role
staff director of the Senate Banking,
"For us, empowerment doesn't mean
for the federal government in providing
Housing and Urban Affairs Subcommit-
what it meant to liberal reformers in the
"seed corn" to encourage entrepreneurial
tee on Housing and Urban Affairs.
1960s-which was redistributing wealth
efforts by the poor.
"There's lots of overlap between what
and trying to mix up.political divisions of
"Our new war on poverty rests on our
we're saying and what the Administration
power," Thomas M. Humbert, HUD's
fundamental belief that helping someone
is calling for. Their plan is well within the
deputy assistant secretary for policy, said.
out of poverty must be a two-way proposi-
scope of good, solid debate."
"Kemp doesn't want an entitlement for
tion," Kemp said in an interview. "Efforts
NATIONAL JOURNAL 12/9/89 2995
Kemp's Role in the Revolution
Here are excerpts from an interview with Housing and
take some compensatory steps to target these pockets of
Urban Development (HUD) Department Secretary Jack F.
ghetto or barrio or centers of poverty or underclass people
Kemp on Nov. 29.
with some special effort. You can chronicle the decline of
Europe in the Medieval Ages from the deterioration of the
On the Bush Administration's Homeownership and Oppor-
intellectual and artistic and economic and social life of the
tunity for People Everywhere (HOPE) plan
cities. The resurgence of cities in Europe led to the Renais-
The HOPE package can lay the groundwork for a new war
sance, not the other way around.
on poverty. It can even be considered Chapter 2 of the civil
rights revolution in terms of jobs and giving people more
On his travels into poor neighborhoods
control over their lives and a greater chance to own prop-
There's an elitist attitude among some on the Left and,
erty and a stake in the American
frankly, some on the Right, that there's
Dream. HOPE in and of itself isn't the
only one Kimi Gray on the face of the
answer to poverty and the underclass
earth. [Gray heads the tenants' organi-
and some of the social pathologies that
zation at Kenilworth-Parkside, a public
manifest themselves in certain parts of
housing project in Washington, D.C.,
our country. But we're laying out the
that is being turned over to tenant own-
predicate, a premise, that poverty
ership.] I meet them in every city. I
should not be considered perpetual.
refuse to believe that there are not these
Poverty is all too often accepted as inev-
inspirational stories in every single
itable. It's not inevitable.
neighborhood, every single community,
every family.
On strengthening the poor
There's gold out there. And it's true
Government should make it known to
that in order to find gold, you've got to
every kindergarten student and every
turn over a lot of mud and rock and
first, second, third or fourth-grader in
stone and dirt. Ultimately, the leader-
every city in the United States, no mat-
ship of any great institution-or any so-
ter what the condition they find them-
ciety, agency, football team, or any great
selves in, that we're going to guarantee
business or great community-is based
you can get a higher education. If you
expect great things from people, you're
Richard A. Bloom
upon looking for the possibilities and
uncovering the innate, intuitive, indige-
going to get better things. Our expecta-
nous potential that is already there and
tions have been too low. With the right
underutilized.
rewards, people will respond. There is
"There's gold out there.'
something sacrosanct about being a
On being at HUD
good citizen, having a well-paying job, having a piece of
I don't think things happen by accident. I'm at HUD at this
property, leaving something to your children and thinking
moment in history to both clean it up and give it a higher
about life in terms of long-term horizons instead of just
mission. I'm more excited about this, frankly, than anything
existential, overnight survival.
I could have thought about other than maybe being Presi-
dent,
more excited than I would have been to be com-
On the health of urban America
missioner of the NFL [National Football League], as much
It's different in different parts of the country. We've had a
as I love pro football. Frankly, I see this as fulfilling some of
good national recovery under President Reagan. He laid the
the revolutionary goals, not only of Dr. [Martin Luther]
basis for now taking a very important and much-needed
King [Jr.] and Rosa Parks and the great civil rights strug-
second step, which is to export or expand economic growth
gles, but the ultimate revolution, which was the American
and opportunity into areas that were left out. We've got to
Revolution of Jefferson and Madison and Franklin.
by government and others to help should
Other ideas that conservatives put forth
munity groups' projects. "You have to
be matched by the commitment of recipi-
for this new war on poverty remain
bring in private-sector developers and ac-
ents to take actions to become self-suffi-
controversial, however. One is the notion
cept them on their terms-they have to
cient." (For more of Kemp's views, see box,
that private developers should be cut out
make a profit. HUD must require that
this page.)
from all programs. Kemp believes HUD
public purposes are being served," he
Increasingly, policy makers at all levels
programs have enriched private develop-
added. "But if you really want to revive a
of government now agree with that prop-
ers but have not served the poor well.
neighborhood, you need private develop-
osition. In the 1960s, proposals such as
"The programs invite people to steal,"
ers too."
"workfare"-requiring the poor to work
HUD undersecretary Alfred A. DelliBovi
The House legislation would permit
as a condition of receiving government
said.
partnerships between nonprofit and for-
checks-were rejected. Today, new wel-
"Community groups are the key, but
profit developers in housing production
fare laws in the states and at the federal
they can't do every project," said Benson
programs. "We're not interested in that,"
level require welfare recipients to work or
F. Roberts of Local Initiatives Support
Humbert said. "We have to be careful that
enroll in education or training programs.
Corp. (LISC), a New York City-based
we're not going to use nonprofits as a ve-
(See NJ, 12/2/89, p. 2942.)
nonprofit organization that assists com-
neer for bringing back the costly new con-
2996 NATIONAL JOURNAL 12/9/89
struction, dependency-oriented housing
much less any new ones. Funds and staff
and social services for long-term homeless
programs of the 1970s."
for monitoring, evaluation and oversight
persons who are mentally ill or addicted
Another point at issue is the conserva-
of HUD activities were cut during the
to drugs or alcohol. Tenants who live in
tives' assertion that housing problems are
Reagan years. And some charge the scan-
apartment projects that are ripe for con-
perpetuated by rent control. Kemp de-
dals have made HUD's staff reticent
version to more-expensive housing-as
clares that rent control laws, now in force
about making decisions on pending proj-
owners pay off their HUD-assisted mort-
in various forms in about 200 cities and
ects, leaving developers, local officials and
gages-would have an opportunity to buy
counties, discourage private investment in
HUD contractors in limbo. "Decision
their buildings before owners could con-
low-cost rental housing and ultimately
making at HUD during the Pierce years
vert them. And the plan proposes 50
lead to shortages and more homelessness.
may have been flip, but at least it got
"housing opportunity zones" in derelict
In a 1987 report, William Tucker of Stan-
done," a former HUD employee said.
urban neighborhoods. The zones would
ford University's Hoover Institution on
But some groups that felt shut out of
be competitively chosen. Cities would get
War, Revolution and Peace in Palo Alto,
HUD during the Reagan years say they
preferred access to HUD programs in ex-
Calif., surveyed 50 cities with rent control
now have far more access there. "Kemp
change for relaxing rent controls, zoning,
laws and found a link between the laws
and his staff people have shown them-
building codes and other regulations in
and homelessness. His research
the zones, as well as offering prop-
helped persuade the Senate com-
erty or other tax abatements.
mittee to include in its omnibus
The proposals arrive after more
housing overhaul bill a measure
than two years of congressional ef-
that would give the HUD Secretary
fort to reformulate federal housing
discretion to withhold federal
policy. The review began in 1986
funds unless cities can show that
when a coalition of state and local
their rent control regulations are
officials, housing industry groups
not counterproductive.
and advocates of low-income hous-
The Washington-based Eco-
ing began to protest the deep cuts in
nomic Policy Institute, in an Octo-
housing programs. Sens. Alan
ber report, charges that Tucker's
Cranston, D-Calif., and Alfonse M.
analysis is flawed. "The growth of
D'Amato, R-N.Y., convened a na-
homelessness during the 1980s has
tional task force in 1987 to devise a
nothing to do with efforts by local
new federal housing agenda. Its
governments to regulate skyrocket-
recommendations formed the basis
ing rents," this report concludes.
of the Senate's legislation.
"Moderate rent controls eliminate
The Reagan Administration,
extreme rent increases, but they do
meanwhile, largely succeeded in
not eliminate the profits necessary
to encourage investment in private
Richard A. Bloom
paring HUD's programs. Its bud-
get authority plummeted from $36
rental housing."
billion in fiscal 1980 to $15 billion
CLEANING UP
in fiscal 1988 in a shift from costly
HUD official Thomas M. Humbert
rental-housing construction pro-
Kemp's first task has been to try
The poor will take advantage of opportunity.
grams toward certificates and
to reform the management of
housing vouchers to subsidize
HUD, which has been the focus of intense
selves to be accessible, educable and com-
rents. HUD was subsidizing production
national attention and the target of much
mitted," said Bud Kanitz, executive di-
of 250,000 private apartments annually
criticism. Executive branch and congres-
rector of the Washington-based National
when Ronald Reagan took office. When
sional investigations into political influ-
Neighborhood Coalition. "HUD under
he left, HUD's commitments to finance
ence peddling, fraud and mismanagement
Reagan was a dumping ground for incom-
such units had all but ended. The number
in HUD programs will continue next
petents and people who were hostile to the
of poor households receiving rental assis-
year. (See NJ, 9/16/89, p. 2259.)
mission of the agency," Campbell said.
tance grew by about one million during
Last month, Congress approved a
"This new group is clearly bright and
the Reagan years.
HUD reform package along the lines of
committed to doing well."
The Reagan Administration argued
one Kemp proposed in October. The law
Within the agency, sources say, debate
that there were millions of vacant housing
aims to strengthen HUD's oversight and
is sometimes intense. From the outset,
units across the nation, so that construc-
program evaluation and prevent the type
Kemp implored his staff to "go out and
tion programs weren't necessary. The
of abuses by private developers and con-
devise bold and radical proposals." Some
problem, some housing analysts say, is
sultants that plagued HUD during the
say the staff divides loosely into two fac-
that vacant units are too expensive for the
tenure of former Secretary Samuel R.
tions-those with a strong conservative
poor or aren't located in the tightest ur-
Pierce Jr. Kemp lobbied hard to persuade
bent and those without. Sources say the
ban markets. "Luxury apartments do not
Congress to adopt the reform measures
first group includes Humbert, Kondratas
help large families, minority groups or
before overhauling housing policies and
and DelliBovi, while in the other camp
people who are very poor, and vacancies
programs. "I don't think anyone would
are C. Austin Fitts, assistant secretary for
in Houston don't help people in Boston,
even consider our HOPE package absent
housing and federal housing commis-
Washington, D.C., or San Francisco,"
restoring the credibility of HUD," Kemp
sioner, and J. Kenneth Blackwell, deputy
Campbell said.
said. "We've been through the valley of
undersecretary for intergovernmental re-
The Senate bill would establish a $3
the shadow, and I think the sunlight is
lations.
billion annual program to enlarge the na-
now beginning to shine."
But critics complain the agency still
HOME OWNERSHIP
tion's supply of low and moderate-income
housing. HUD would channel the money
lacks sufficient personnel and resources to
Bush's HOPE plan proposes $728 mil-
to states and localities, which would have
manage its current programs effectively,
lion over the next three years for housing
wide flexibility in deciding how to spend
NATIONAL JOURNAL 12/9/89 2997
it. The House measure likewise includes
subsidies for constructing low-income
rental apartments.
"We're not for new construction pro-
grams but for home ownership," Hum-
bert said, adding: "We're not going to
make an ideological statement about
never wanting new construction. In some
cases, it may be warranted." He noted
that the low-income housing tax credit,
which Bush endorsed, finances construc-
tion as well as rehabilitation of housing
for the poor. This year, the credits pro-
duced more than 100,000 new or restored
units.
"A strategy that concentrates primarily
on transferring ownership of existing
stock to people already living in it doesn't
deal with the fundamental problem-
which is to deal with expanding stock for
John Eisele
people at the bottom," Campbell said.
The housing plan offered by Bush and
Bud Kanitz of the National Neighborhood Coalition
both bills in Congress would channel sub-
Kemp and his HUD staff are "accessible, educable and committed."
stantial new resources to community-
based nonprofits engaged in housing
ilies. The Senate committee's bill would
presidential nomination in 1988 and
development.
require that states and cities channel a
might make another try someday) or to
Though a handful of conservative crit-
portion of their federal housing grants to
try to win points for the Republican Party
ics liken the idea to "re-funding the Left,"
the housing projects of community devel-
among the poor and among black voters.
most observers say that such groups are
opment groups; the House committee's
Kemp-unlike his reclusive predeces-
now a major factor in the delivery of
bill proposes a $500 million program to
sor, Pierce-circulates tirelessly. He testi-
housing for the poor. There are an esti-
finance local housing production pro-
fies regularly on Capitol Hill and makes
mated 2,000-3,000 community develop-
grams that involve the nonprofits.
frequent forays into poor communities,
ment organizations nationwide. A survey
The Senate panel's plan, like Bush's,
visiting public housing projects and
sponsored by the Washington-based Na-
would permit first-time homebuyers to
lunching at shelters for the homeless. "I
tional Congress for Community Eco-
use funds drawn from retirement ac-
think Kemp had never seen in quite so
nomic Development, a national associa-
counts for down payments. The House
drab colors the dark side of America,"
tion of community groups, showed that
panel's would create a $2 billion annual
Humbert said. "I think it's given him an
834 groups had produced nearly 125,000
trust fund to lower mortgage rates for
almost evangelical purpose and a greater
units of new or renovated housing, most
first-time buyers.
sense of urgency."
of it during the 1980s.
The Secretary peppers his stump
The Bush proposal would provide $567
EVANGELIZING
speeches with quotes from Abraham Lin-
million over three years for nonprofits to
Some critics charge that Kemp's war
coln, the Rev. Martin Luther King Jr.
rehabilitate government-owned proper-
on poverty is designed to boost his own
and Charles Dickens and frequently re-
ties and resell them to low-income fam-
political ambitions (he sought the GOP
fers to the Old Testament's Nehemiah.
"Nehemiah was the HUD Secretary of
Jerusalem," he told an audience this year.
"Nehemiah realized ancient Judea could
not survive without its cities. Neither can
America."
"Jack Kemp is a breath of fresh air,"
Rouse said. "He brings to HUD a real
concern about the lives of people who
aren't making it in America. He earnestly
wants to do something."
But many of Kemp's ideas-from ten-
ant ownership of public housing to enter-
prise zones to reliance on community
groups to deliver substantial amounts of
housing for the poor-are largely un-
tested.
And Roberts of LISC said: "I love Jack
Kemp's phrase-he calls himself a "bleed-
Richard A. Bloom
ing-heart conservative.' That said, I don't
think the folks at HUD yet know or un-
derstand well enough the tools they'll
need to follow through on their vision.
Enterprise Foundation chairman James W. Rouse
Community development is very compli-
"Jack Kemp is a breath of fresh air" at HUD.
cated stuff."
2998 NATIONAL JOURNAL 12/9/89
BUDGET REPORT
Security Blanket
Applying the huge social security surpluses to federal budget deficit calculations masks the
deficit's size and blocks economically useful, long-term investment, many experts say.
BY LAWRENCE J. HAAS
issues out of legislation to raise the debt
Hollings, D-S.C., Daniel Patrick Moyni-
limit, kept Congress from a full debate on
han, D-N.Y., and Terry Sanford, D-N.C.,
I
t's no secret that what worries Wash-
social security last month as part of that
or House leaders and others with ideas on
ington policy makers often escapes no-
debt bill.
the subject.
tice beyond the Capital Beltway. And so it
The subject is nearly certain to be back
Whether America's elected officials
is with social security, whose burgeoning
on the congressional agenda, perhaps as
can "do the right thing," however that is
surpluses are the subject of growing de-
early as spring, either as part of the next
defined by specialists in federal agencies
bate in the White House, Congress and
round of tinkering with the budget pro-
and in private think tanks, is far less cer-
elsewhere around town.
cess or separately. Majority Leader
tain. For as much as any other issue, this
"I don't see any political pressure com-
George J. Mitchell of Maine, Budget
is one in which politics and economics not
ing on this from anywhere," said Ronald
Committee chairman Jim Sasser of Ten-
only don't match, they may be diametri-
S. Boster, chief of staff to Rep. Willis D.
nessee and other key Senate Democrats
cally opposed.
Gradison Jr., R-Ohio. "I can't recall a
almost guaranteed that when Heinz
"We are torn between an economic an-
single letter [that] said, 'We ought to bal-
threatened to block the debt limit legisla-
swer and a political answer-which may
ance the non-social security budget.'
tion on Nov. 7, just a day before the Trea-
be two different answers," Rep. Frank-J.
But across the Capitol, Sen. John
sury Department predicted that the gov-
Guarini, D-N.J., said at a Budget Com-
Heinz, R-Pa., says that when it comes to
ernment might default.
mittee hearing in September on the social
social security surpluses, the public is of-
Though Heinz backed down after a
security surpluses.
ten a sleeping giant that awakens with a
testy exchange with Mitchell and pleas
Republicans remember only too well
vengeance when told that the surpluses
from Senators of both parties, he has no
that after President Reagan proposed in
are being used to finance spending in
interest in backing off permanently. Nor
1981 to cut social security benefits, Dem-
other parts of the federal budget.
do Sens. Phil Gramm, R-Texas, Ernest F.
ocrats used that against them in the 1982
After Heinz explains in newsletters that
the surpluses in the retirement trust fund
help pay for such current federal pro-
grams as defense, housing and transporta-
tion, he says, 23 per cent or more of the
newsletter recipients mail back their al-
most uniformly negative thoughts. On
other subjects, only 2-4 per cent of recipi-
ents are moved enough to write, he adds.
"They may not know what the govern-
ment is doing without our explaining it to
them," Heinz said recently. "But once
they understand, they are universally up-
set.
More important than even the
rate is kind of the quickness and intensity
of the response, which is visceral-'Keep
people's hands off the social security sys-
tem.'
Just when the social security surplus
might-with prodding from politicians—
grow into the kind of broad-based politi-
cal issue that many predict for it is un-
Richard A. Bloom
clear. But only an unexpected interparty
brawl over capital gains taxes, and a sub-
Sen. John Heinz, R-Pa.
sequent agreement to keep that and other
Delay makes it harder to exclude social security from the deficit calculation.
NATIONAL JOURNAL 12/9/89 2999
and 1986 midterm elections. Democrats,
more than $2 trillion), before the money is
without counting the trust fund surplus.
meanwhile, are openly wary of allowing
needed to pay for baby boomers' retire-
But that would make it impossible to de-
Republicans to steal the social security
ment. Because of legal requirements that
clare the budget balanced in 1993, as the
issue. And neither party needs any re-
the surpluses be invested in Treasury se-
Balanced Budget Act now requires. If the
minders about the political strength of the
curities, social security helps to under-
projected social security surplus of $99
elderly, with Congress having just been
write deficit spending elsewhere in the
billion for that year is not counted, Con-
forced to repeal the new catastrophic
budget by reducing the amounts that the
gress would have to raise taxes or cut
health care insurance program after an
government must raise by selling Trea-
spending by that additional amount to
outcry from senior citizens.
sury securities in financial markets.
achieve a balanced budget.
Also at stake is the future of the 1985
Nobody is too happy about that. For
Differences between the various pro-
Balanced Budget Act, whose schedule of
one thing, applying these huge surpluses
posals deal mostly with the timing of such
annual deficit targets is supposed to cul-
to today's annual deficit calculations
a drastic revision. Heinz and Holling, for
minate in 1993 with a balanced budget.
masks the size of the deficit, according to
instance, want the change made immedi-
Changing the way the budget treats social
numerous experts. In fact, despite all the
ately, and they would raise the annual
security surpluses could force Congress to
talk of deficit cutting in recent years, offi-
deficit targets so that the adjustment
extend those deficit targets until the end
cial estimates show that the non-social se-
could be made in an orderly way. "It is
of the century.
curity deficit is still growing. (See table
time to stop playing games with social
If, for instance, a decision is made to
and chart, this page.)
security and the government's finances,"
remove the surpluses from the deficit cal-
Hollings wrote on Oct. 1 in a Washington
culations while leaving the deficit targets
FIXING THE PROBLEM
Post op-ed article.
unchanged, the White House and Con-
Not only does that accounting reduce
Besides, Heinz said in an interview, the
gress would have to do a lot more deficit
the government's incentives to fix its
longer Washington waits, the harder it
cutting in non-social security programs to
books, it also lets policy makers rely on
will be to make the change. If it took place
meet those targets; that might make a tax
the regressive social security payroll tax,
next year, for instance, the deficit would
increase likelier. If, on the other hand, the
rather than the more-progressive income
climb by only $65 billion; if it waited until
decision is to remove the surpluses from
tax, to finance current spending. And it
1994, the deficit target would immedi-
the calculations while stretching out the
allows those surpluses to be used for cur-
ately go from zero, under current law, to
deficit targets by a few years, policy mak-
rent consumption instead of being in-
$113 billion. In Heinz's view, it would be
ers would have to continue playing the
vested in long-term, economically benefi-
politically awkward to have to explain
annual game of meeting those targets well
cial enterprises.
that to the voters. "There's a very great
into the 1990s.
But fixing the problem is not easy. Even
risk that if we wait until '93, it's going to
On one level, the issue is simple. Be-
the terms of debate are confusing, if not
be too embarrassing."
cause of changes implemented in 1977
misunderstood. Everyone wants to "pro-
Gramm and the House Republicans,
and 1983 to avert a short-term bank-
tect" social security, and some want to do
who drafted a plan under the direction of
ruptcy of the trust fund and build a finan-
it by somehow separating the hugely pop-
Rep. John R. Kasich, R-Ohio, recom-
cial cushion for the future, the payroll tax
ular program-which represents 23 per
mend that the change take place in 1994,
is now bringing in much more money
cent of all federal spending-more clearly
after the current deficit targets expire.
each year than the social security system
from other programs in the budget.
House Republicans say that Federal Re-
must spend on benefits. Accumulated sur-
The most popular approach, advanced
serve Board chairman Alan Greenspan
pluses are projected to reach nearly $12
by Democrats and Republicans alike, is to
recommended such timing so that finan-
trillion by about 2030 (in 1988 dollars,
force the government to balance its books
cial markets would not be disrupted.
How Social Security Surpluses Shrink the Budget Deficit
Without the huge surpluses in the social security trust fund, the over-all federal budget deficit would be even larger than currently projected.
The chart shows that the non-social security deficit is expected to rise, but that the social security surpluses through 1994 will offset that
deficit and serve to put the total deficit on a declining path. Figures through fiscal 1989 are final. For 1990-94, they are the Congressional
Budget Office's August estimates and do not incorporate the final 1989 figures or congressional action for 1990. In the chart, the difference
between the two deficits represents the social security surplus's contribution to deficit reduction. All figures are in billions.
Non-social security deficit
1985
1986
Total deficit
1987
1988
1989
1990
1991
1992
1993
1994
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
Non-social security deficit
$221.6
$237.9
$169.3
$193.9
$204.5
$206
$219
$227
$242
$241
Total deficit
212.3
221.2
149.7
155.1
152.1
141
144
141
143
128
3000 NATIONAL JOURNAL 12/9/89
Kasich, explaining his proposal at a
that, federal policy makers will
Nov. 1 news conference with House Mi-
face three unpleasant choices:
nority Whip Newt Gingrich of Georgia
raise taxes, cut other spending
and the Budget Committee's top Republi-
and borrow more.
can, Bill Frenzel of Minnesota, said: "In a
That one of those decisions,
nutshell, what it does is attempt to pre-
or a combination of two or all
serve social security well into the next
three, will be made is not in
century. It's designed to protect the baby
question. Despite public skepti-
boomers, while at the same time preserv-
cism about the social security
ing people's ability to receive it today."
system's long-term viability, few
Though perhaps well-intentioned, such
are talking about anything other
pledges to "protect" social security are
than paying benefits to everyone
largely meaningless. There is no way to do
eligible.
that, just as there is no reason to think the
The task won't be easy, as de-
program is currently threatened.
mographic changes take place
Social security surpluses can't be
in the coming decades. As baby
"saved," unless the government literally
boomers retire, the ratio of
stores dollar bills in a vault and lets infla-
workers to retirees will shrink,
tion eat away at their value. As Congres-
placing a greater burden on
sional Budget Office (CBO) director Rob-
each worker. Instead of having
ert D. Reischauer said at the House
five people 20-64 years old for
Budget Committee's September hearing,
every person who is 65 or
"It is not like we are putting away food
older-as was the case in
and clothing and real resources in a closet
1985-the United States will
and we are going to open that closet up
have fewer than three by 2025,
and distribute those accumulated goods
Penner wrote in Social Security
and services to the retirees of the next
and National Savings, a study
century."
for the Committee for Eco-
Richard A. Bloom
Nor should the surpluses, invested in
nomic Development, a private
Treasury securities, be seen as wasted.
business group.
General Accounting Office's David G. Mathiasen
Addressing that point at the same hear-
ing, Rudolph G. Penner, a former CBO
BLESSING OR CURSE?
By 1993, the problem's $100 billion worse.
director and now a senior fellow at the
So, paying for the baby boomers will be
hikes or spending cuts to balance the non-
Urban Institute, said: "There is a more
an economic burden. But will the budget-
social security part of the budget, and
peculiar argument that implies that the
ary changes now being debated ease that
plan for their own retirement by validat-
fact [that] social security is financing part
burden to the point of insignificance or
ing the surpluses in a separate pot.
of the non-social security deficit repre-
make it a heavy one?
Indeed, Alice M. Rivlin, a Brookings
sents a waste of social security resources
That depends. Social security surpluses
Institution senior fellow and former CBO
or even worse, some sort of theft from the
are a blessing or a curse, depending on
director, suggested to the House Budget
social security system.
That is no
how they are handled. If, as most econo-
Committee that "social security trust
more true than to say my own private
mists believe, future economic growth is
funds should be separated visually from
pension
system
is somehow being ex-
largely tied to national savings, then so-
the rest of the budget-shown on separate
ploited because it invests some of its
cial security brings a new pool of potential
lines on all budget tables, for example-to
money in Treasury securities."
savings.
dramatize to politicians and beneficiaries
That doesn't mean, however, that pro-
Right now, however, with the surpluses
that these funds are held separately and
posals to change the way the budget treats
being used to help meet annual deficit tar-
dedicated to the specific purpose of pay-
social security are not important. The
gets, no savings are accruing. That could
ing social security benefits."
question is not whether social security is
change if the non-social security portion
But whether any of the proposals
"protected." It is whether the nation's
of the budget were balanced; that would
would help validate the surpluses is ques-
economy can easily withstand the costs
make the social security surpluses extra
tionable. Under an optimistic scenario, if
associated with the retirement of baby
funds, in essence. Instead of financing the
the surpluses were not used to reach the
boomers in the middle of the 21st century.
deficit, the surpluses could be used to re-
deficit targets, the government would pre-
Moynihan, a member of the National
duce the national debt, which just topped
sumably also take the much tougher steps
Economic Commission (NEC) appointed
$3 trillion and is headed much higher.
needed to meet those targets, even if that
almost two years ago to come up with a
For economic purposes, of course, the
meant a substantial tax increase.
solution to the budget deficit, wrote some-
savings need not accrue from social secu-
"To the extent that you take the much
what dramatically in the NEC's minority
rity. Any kind of savings would do. The
tougher measures to balance the non-so-
report early this year: "We can slouch
government could, for instance, continue
cial security part of the budget, it becomes
into the 21st century, or we can march
to count social security as part of its uni-
correspondingly more difficult to see how
into the 21st century. The outcome will
fied budget and thus run a budget surplus.
it can be done only on the spending side,"
turn on whether we get our political
That, too, would add to national savings
said General Accounting Office (GAO)
arithmetic in order over the next five
and, therefore, future economic growth.
budget expert David G. Mathiasen, who
years."
And yet the idea of setting the social
said he did not speak for the GAO. "By
If social security surpluses are going to
security surpluses aside and balancing the
1993, it makes the problem $100 billion
be invested in Treasury securities-which
rest of the budget-or, as economists like
worse and increases the pressures to raise
are widely viewed as the safest investment
to say, "validating" the surpluses-car-
revenues."
around-then the securities must be re-
ries an appealing logic: Today's baby
But some experts worry about what
deemed when baby boomers retire. To do
boomers accept the hard choices of tax
would happen to the surpluses if they
NATIONAL JOURNAL 12/9/89 3001
defend that [report]," Gingrich
But Moynihan VOWS that the situation
said at a news conference.
won't last long. In the NEC report, he
Maybe not, said Stanley E.
wrote: "Let no one suppose that a Demo-
Collender, director of federal
cratic Congress will much longer allow a
budget policy at Price Water-
payroll tax to be used to service a $2 tril-
house, a New York City-based
lion-$3 trillion debt owned in vastly dis-
accounting firm. "First of all,
proportionate amounts by wealthy indi-
getting a super-majority [60 per
viduals.
This is not a threat. It is a
cent] is never a problem," he
political reality and, indeed, an ethical im-
said. "If you're thinking about
perative. The nation struggled for a gen-
increasing social security bene-
eration to ratify the 16th [income tax]
fits, then who's going to vote
Amendment to the Constitution. We are
against that?"
not about [to] see it effectively repealed by
a reform in the financing of social secu-
SPECIAL STATUS
rity."
Taking social security sur-
Some experts advocate a restructuring
pluses out of the deficit calcula-
of social security so that trust fund sur-
tions would give the program
pluses don't accumulate in the first place.
special status and, critics warn,
Rather than maintain the current 75-year
tempt policy makers to apply
solution to social security, policy makers
similar treatment to other pro-
could go back to the more traditional pay-
grams financed by trust funds
as-you-go approach in which revenues ap-
that are running surpluses and
proximate spending needs from year to
can't be spent for general gov-
year and are raised and lowered when
ernment needs.
that's necessary.
Richard A. Bloom
"I don't think you'll see the
Some experts call this the best ap-
social security trust fund come
proach of all. Others view it as an alterna-
off without the other trust
tive if the government can't find a way to
funds, like aviation, coming for-
use the surpluses to boost national sav-
Ex-Budget Committee aide Patricia A. Quealy
ward and saying, 'Wait a
ings.
Other trust funds might get special treatment.
minute,' " said Patricia A.
In the first school are Penner and Rob-
Quealy, the House Budget
ert J. Myers, former chief actuary and
weren't needed to meet the deficit targets.
Committee's former chief counsel and
deputy commissioner of the Social Secu-
Many fear that the White House and
now special counsel in the Washington
rity Administration. Not only would pol-
Congress, instead of using them to repay
office of Eckert Seamans Cherin & Mel-
icy makers not be tempted to spend the
the debt, would spend them on new pro-
lott, a Pittsburgh law firm.
surpluses, Penner says, but they might
grams, principally for senior citizens who
The first to win such treatment might
also be more inclined to reexamine social
view that money as theirs.
be medicare, the other huge trust fund
security in conjunction with their annual
"All you do is open up the possibility
that serves the elderly. If medicare as well
budget battles. Furthermore, by cutting
that the surplus that's being accumulated
as social security retirement funds es-
payroll taxes, Washington would be in a
on paper can be spent for anything and
caped scrutiny, Urban Institute senior fel-
better position to raise other taxes to cut
everything that man could invent without
low Isabel V. Sawhill said in a paper, "the
the deficit.
being subject to any fiscal discipline," Of-
rest of government will be starved for
The GAO is in the second school. After
fice of Management and Budget director
funds. Spending for such purposes as edu-
recommending that the government use
Richard G. Darman said at an Oct. 27
cation, the war on drugs, preventive
the social security surpluses to boost sav-
briefing.
health care, infrastructure, research, the
ings, the GAO wrote in a January 1989
After all, as experts note, spending the
environment and other investments in the
report: "If the Congress and the President
surplus would cause no short-term pain,
future will be crowded out by the escalat-
are unable to agree upon and implement a
and perhaps some gain. Because the sur-
ing costs of programs for the elderly."
strategy for restoring fiscal balance in the
plus would not count in the deficit cal-
If taking social security out of the defi-
non-social security part of the budget, we
culation, its depletion would not set pol-
cit calculations raises certain risks, leav-
believe that the Congress should recon-
icy makers back in terms of keeping their
ing it alone raises others. The more the
sider the pattern of payroll tax increases
books in balance. At the same time, they
government uses the surpluses to under-
that is producing the current and pro-
could curry favor with constituents, par-
write deficit spending, the more it relies
jected social security surpluses. To imple-
ticularly senior citizens, who have a long
on regressive payroll taxes to achieve
ment this option, it would be appropriate
wish list of unfulfilled items.
those surpluses. And that is anathema to
to return the social security program to a
Proponents of the pending social secu-
many Members of Congress, especially
pay-as-you-go financing basis once the so-
rity proposals are aware of such problems.
Democrats.
cial security reserves have reached a desir-
House Republicans, for instance, suggest
"The thing that is causing me a lot of
able contingency level of about 100-150
that if the surpluses are removed from
heartburn is the recognition that between
per cent of annual outlays."
deficit calculations, moves to change the
now and 2020, if we continue this current
When it comes to social security, of
actuarial status of the trust fund would
accounting system that we have, we are
course, anything that Washington does,
have to win 60 per cent of the vote.
going to go through a period of time
or doesn't do, entails political risks. As
"I think that given a report that says,
where the payroll tax is going to become
Kasich put it in an interview: "Social se-
'This undermines the baby boom genera-
an increasingly large source of revenue to
curity it's almost like a basic founda-
tion's chance of retiring on social secu-
pay for the operation of the federal gov-
tion of this country. To me, it's almost like
rity,' I think you could easily get 40 per
ernment," Rep. Jim Slattery, D-Kan.,
the flag. I mean, people have come to ex-
cent of the Congress that would vote to
said at the Budget Committee hearing.
pect it and depend on it."
3002 NATIONAL JOURNAL 12/9/89
WASHINGTON UPDATE
Policy and Politics in Brief
Bush's Course to Malta Summit
By David C. Morrison
"most-favored-nation" trade status af-
Bush warned against "growing com-
ter it codifies liberal new emigration
placency" in responding to Gor-
That the American and Soviet Presi-
policies. These matters "are of princi-
bachev. And four days later, in a
dents spent much of the first day of
pal importance," said Gorbachev, who
speech at the Coast Guard Academy
their Dec. 2 and 3 parley in Malta anx-
badly needed to return to Moscow
reportedly designed to appear "more
iously pacing the decks of their respec-
with some rays of economic hope.
positive," Bush said he would "seize
tive ships, unable to meet thanks to
"Bush is known for incrementalism;
every-and I mean every-opportu-
gale-force winds, was perhaps Mother
it is a dramatic turn for him," the Cen-
nity to build a better, more stable rela-
Nature's way of chiding George Bush
ter for Strategic and International
tionship with the Soviet Union."
for wanting to "meet cute" with
Studies' James A. Blackwell Jr. said of
Over the ensuing months, however,
Mikhail S. Gorbachev in a logistically
the tone in Malta. But, he added, Bush
the Administration spoke in conflict-
complicated "summit at sea."
"has been walking up to this point."
ing voices, with key players publicly
Far more important, that the super-
Only last April, remember, Bush's
expressing wariness about Gor-
power chiefs wound up their "non-
protracted "national security review"
bachev's sincerity and the likelihood
summit summit" in a cheerful and un-
urged on him a "status quo-plus" ap-
that he would succeed in his reforms.
precedented joint press conference was
proach to perestroika. The relationship
But a seismic shift in thinking was
a measure of a dramatically sharp turn
now emerging, in which Bush has
signaled by Secretary of State James
taken by the Bush Administration. In
emphatically assumed a stake in
A. Baker III in a widely remarked Oct.
Malta, the United States embarked on
Gorbachev's success, however, bears
23 address in San Francisco. "Any un-
a course of overt cooperation with a
little resemblance to the grim postwar
certainty about the fate of reform in
Soviet government for the first time
status quo.
the Soviet Union," he argued, "is all
since the World War II.
Bush quickly rejected that review's
the more reason, not less, for us to
"Over the last week, there were two
findings, widely derided as too deter-
seize the present opportunity."
important developments," Arms Con-
minedly centrist. And in a series of
And two weeks after that, of course,
trol Association assistant director
foreign policy addresses last spring, he
the Berlin Wall came down. One of the
James P. Rubin suggested. "First, af-
began groping for a handle on the
prerequisites Bush had set on May 12
ter 70 years [of Kremlin-Vatican rift],
Gorbachev phenomenon.
for welcoming the Soviets "back into
Gorbachev endorsed the Pope. And
In an April 17 speech in Ham-
the world order," that stunning event
second, after a year of struggling, Bush
tramck, Mich., Bush stressed the need
endorsed Gorbachev."
set the stage for the striking show of
for "prudence, realism and patience."
Formal negotiations were not on the
U.S. support for the Soviets on display
In a May 12 speech at Texas A&M
in Malta.
agenda. But the two sides did set
University-widely criticized as
"The United States has declared
schedules for accelerated action on
overly cautious-he said that the
that it has stopped economic warfare
several arms accords. And much of the
United States could move "beyond
against the Soviet Union," Georgi
movement in this arena, significantly,
containment," but laid out a laundry
Arbatov, Moscow's chief America ex-
was made by Bush.
list of changes in Soviet policies as a
pert, exulted to reporters in Malta.
Reversing his earlier reluctance to
prerequisite.
"We are now being dealt with as a
tie strategic arms talks to a firm dead-
At Boston University on May 21,
normal country."
line, for example, Bush committed
himself to concluding the key elements
of a pact before the next summit,
slated for next June. On chemical
weapons, Bush also dropped his insis-
NATO
WARSAW
tence that the Pentagon be allowed to
keep producing new nerve agents after
a global ban has been signed.
Even on one of the few issues of
substantive disagreement-Nicara-
gua's alleged provision of East Bloc
arms to the leftist guerrillas in El Sal-
WARSAW PACT
vador-Bush was conciliatory: "I
don't believe that the Sandinistas have
400
told the truth to our Soviet friends."
Of paramount relevance to super-
power relations, however, were Bush's
offers to support observer status for
WARSAW PACT
the Soviet Union in the 97-nation Gen-
eral Agreement on Tariffs and Trade
and to restore the Soviet Union to
NATIONAL JOURNAL 12/9/89 3003
Democrats Making Wrong Connections?
voters. He also spoke of the social
sionals at crafting these connections.
By Dick Kirschten
costs of drugs and the dissolution of
We have a great desire to go out and
Oregon's Neil E. Goldschmidt has a
the family and complained that the
tell the people we're for them on mini-
unique perspective on the national po-
federal government is trying to shift
mum wage, we're for them on benefits
litical scene. He's a Democratic gover-
financial burdens to the states. Follow-
of various of kinds.
On health care,
nor in a historically Republican state.
ing are excerpts from his remarks.
if [Rep.] Henry Waxman [D-Calif.],
If he is elected to a second term next
instead of going to the hospital groups
*
year-by no means a foregone conclu-
and all the lobbies that want him to
sion-he will be the first member of
You've got a President [Bush] who
come and talk, got himself out on the
his party to achieve that distinction
hasn't found a problem he would pay
road and started trying to trade [ideas
since 1906. Yet, he's governor of a
for. He won't pay for education; he
with ordinary citizens] and turn his
state noted for its cultural liberalism; it
won't pay for drugs; he won't pay for
message into a national agenda, he'd
was one of the few carried last year by
Poland. I mean, you can name it, he
succeed, I suspect.
We're all capa-
Democratic presidential candidate Mi-
won't pay for it
We've got an over-
ble of doing some of that. But I don't
chael S. Dukakis.
hang of two Presidents in a row that
think we've done that very well.
Goldschmidt, a former mayor of
essentially have made an enemy of the
*
*
Portland and member of President
government. Basically, the message
Carter's Cabinet, met with members of
they have is that "government is a bad
People are quite aware that there has
the National Journal staff on Nov. 28.
idea; we aren't for government pro-
been a change in family structure and
Among other matters, he talked about
grams; we don't want it to spend
[that there are] social problems and
the "gridlock" between taxpayers and
money; we think it does bad things
drugs
And people are sitting there
government-nationally and in his
when it does that." This is a funda-
saying, "I'm taking care of these things
state, where voters consistently resist
mental difference between those guys
for my kids; why aren't these other
either property tax increases or the im-
and the Administration I served in.
people doing it? Why do I have to pay
position of a sales tax. While heaping
for it? But on the other hand, if I don't,
*
plenty of blame on Republican Presi-
look what's going to happen to the
dents Reagan and Bush, Goldschmidt
We [Democrats] have got this core of
generation my kids are going to grow
also criticized the direction taken by
things that we are really separated
up with." We have this [question] kind
Democrats at the national level who,
from the Republicans on. But we do it
of rolling and churning underneath the
he said, have become more closely
by interest groups, I think, not by di-
debate about taxes. "Are we getting
identified with interest-group lobbies
rect connection with the voters.
our money's worth on schools? Do we
than with the aspirations of individual
We need to be a lot better profes-
have to pay millions more for social
Richard A. Bloom
Oregon Gov. Neil A. Goldschmidt: Democrats have a "core of things" that separate them from Republicans
3004 NATIONAL JOURNAL 12/9/89
services so that these kids don't end up
The ultimate
in prison? Why doesn't somebody take
irony of all this is
responsibility for it?"
the question of
whether the edu-
*
*
*
cation system is
Bush comes in with his troops and says
capable of deliv-
the answer is choice in schools. The 27
ering a work
per cent that aren't graduating-a sub-
force that is in
stantial chunk of them are from fam-
turn capable of
ilies who never intended to exercise
being the com-
any choice,
Teachers are saying,
petitive engine
"Can you help us make these parents
that drives us in
bring their children to school?"
the world mar-
Choice? They've made it. Stay home
ket. [That] is
and take care of the babies. Give them
really very much
drugs. They're getting these drugs
in doubt nation-
from their parents and from their
ally
W
e
brothers and sisters. The toughest
know it needs to
constitutional decision we have to
get better. The
make after the death penalty is termi-
challenges are all
nation of parental rights. The biggest
there. I mean, are
issue in our society and in our state
we going to inter-
today is how much involvement do
nationalize our
our people want us to have in these
children's educa-
cases where they are delivering chil-
tion? How much
dren and not raising children.
And
foreign language
I think, in the end, the Republicans
are we going to
don't have an idea how to fix this,
provide for our
[while] we have people in our party
kids? Our univer-
who are really committed to under-
sity system
standing it. But we haven't had this
wanted to put in
conversation in a way that the Ameri-
a foreign lan-
can public feels comfortable about at
guage require-
Richard A. Bloom
all. It's just been more taxes.
ment for entry to
the state's three
*
*
*
But Democrats give interest groups too much attention.
major universi-
There is a lot of frustration about this
ties. [They] were told by the education
great extent is the one that is doing it.
problem that is going on around us.
leadership in K through 12, "Great
People are saying, "Why the hell
*
idea, but we don't have the money to
*
do I have to pay for all of this stuff?"
hire the faculty to teach the lan-
[Sen.] Al Gore, [D-Tenn.], [Sen.] Bill
But they understand that it isn't [a
guages." Those are issues we have to
Bradley, [D-N.J]. and [Rep.] Ron
question of] "If I don't pay, these peo-
[address], but we've got to get through
Wyden [D-Ore.] and others have bat-
ple will have to take care of them-
this issue of the property tax first.
tled to get resources into the social ser-
selves. They aren't taking care of
*
vices agenda.
themselves, and in the end, my kids are
*
I certainly don't have
any discomfort about the values [they]
going to pay for it-in prisons or wel-
Congress is adding mandates to med-
are expressing, but we [governors]
fare or in drug rehab houses." So the
icaid faster than most states can keep
have got a lot of discomfort about the
question is, how do we create a perfor-
up
with
them.
The governors have
shift that is going on here; just a con-
mance contract between [citizens] and
asked for essentially a moratorium,
tinual shift of responsibilities to us
the government, which they suspect
which I think is pretty remarkable
with our somewhat limited capacity to
will take any amount of money and
since we don't agree on so many
meet it.
So the question for me isn't
spend it in stupid ways. And where
things. It's a serious problem because
whether [their] values are out of sync,
the Democrats get to be suspect, I
what we've got is entitlements being
or whether there would be a very mas-
think, is that we don't treat this as an
created for groups that have got the
sive disagreement between Demo-
agreement between the citizens and an
capacity to lobby for those entitle-
cratic governors and our congressional
outcome in which somebody is actu-
ments, while whole blocks of citizens
delegation if we went to a platform
ally looking at the results. [Instead] it's
aren't getting any improvement in
convention. It's just that they can't
an agreement between us and a union
their services at all.
The governors,
keep doing this unless they are pre-
that supported me. It's a deal between
sort of as a group, are out there con-
pared to pay for it. Waxman is and
all these political interest groups.
fronting their voters with tax issues
Bradley is, but they are not going to
That's in the head.
It is a very diffi-
and spending issues day after day,
win this fight with George Bush. So
cult problem constructing something
while they [Members of Congress] are
what we've got is a system in which the
in our society in which people feel they
dropping these mandates on us. And, I
compromise is, "If you tell the states to
are going to get their money's worth.
want to be clear about it, my party to a
do it, it's OK."
NATIONAL JOURNAL 12/9/89 3005
IN PERSON
Dimitri K. Simes
By Rochelle L. Stanfield
If your favorite network talk show or
newspaper op-ed page has been giving
increased attention to events in the So-
viet Union-a likely bet these days-
you've probably been seeing a lot of
Dimitri K. Simes.
Simes, a senior associate at the
Washington-based Carnegie Endow-
ment for International Peace, is a regu-
lar commentator on NBC News and a
frequent contributor to The Washing-
ton Post, The New York Times and the
Los Angeles Times, among other news-
papers.
He looks the part of a Soviet com-
mentator-bald pate, black beard and
Richard A. Bloom
heavy Russian accent. More impor-
tant, Simes is a master of instant analy-
sis, a talent he considers legitimate and
necessary "in a period like this of great
A Sovietologist Scores
uncertainties."
"There is great pressure on all of us
[analysts] to make judgments
In Instant Analysis Game
quickly," he said. "[Decision makers]
have to formulate national policy be-
of heat lately for missing the early sig-
on numerous occasions. His analysis is
fore the evidence compiled is lengthy."
nals of the drama now unfolding in the
as good as anybody's who criticizes
And if he did not participate in the
Soviet Union and Eastern Europe.
him."
instant analysis game, that would not
Simes prides himself on predicting
One critic is Edward N. Luttwak, a
prevent others with contrary opinions
substantial change in the Soviet leader-
Soviet expert with the Center for Stra-
from presenting their side, in his view
ship in a 1978 article in the Journal of
tegic and International Studies (CSIS)
giving the public a skewed and unbal-
International Affairs. "So [current
in Washington. "I have never person-
anced picture of the situation.
developments] didn't come as a shock
ally seen any research work he has
Though he is an enthusiastic partici-
to me," he said recently. "Although I
done, unlike all other Sovietologists
pant in foreign policy debates, "I start
didn't predict the magnitude of what is
who command authority from their
with the assumption that I will have a
happening."
peers," Luttwak said.
marginal effect," he said. "I don't
He also wrote a piece in the March
Others criticize Simes for using gim-
think academics have much influence
1, 1987, Washington Post suggesting
micks, such as cultivating a strong
on operational decisions. Talking to
that Gorbachev might dismantle the
Russian accent, to enhance his televi-
senior officials is never very useful un-
Berlin Wall as the "ultimate East-
sion image.
less they are close personal friends."
West public relations coup."
Simes, 42, was born and educated in
That doesn't prevent him from at-
Simes is a controversial figure
Moscow. The son of Jewish dissidents,
tending meetings with such officials,
among fellow Sovietologists, a frac-
he was outspoken from an early age.
he went on, partly because it is an ego
tious and competitive community.
He proudly points to being expelled
trip; partly because it is necessary to be
"The Soviet field was highly polarized
from Moscow State University be-
taken seriously in the foreign policy
until recently. Now it is simply con-
cause of his views on Vietnam.
community; and partly to "under-
fused," said Michael Mandelbaum, di-
In 1972, Simes emigrated with his
stand, by listening to the questions
rector of the project on East-West rela-
parents and wife. While in Rome
they [the officials] ask, where they
tions for the New York City-based
awaiting transportation to the United
stand."
Council on Foreign Relations. Simes
States, "I was very lucky," he recalled.
Simes considers himself a skeptic
has a "clearer sense of the history and
"The CIA came to interview me as a
but not a hard-liner. When Soviet lead-
portent of what's going on because he
possible Soviet agent, and as a result of
er Mikhail S. Gorbachev burst on the
knows Soviet society so well, from the
the interview, I became a consultant."
scene, "the great liberal thinkers were
inside," Mandelbaum said.
Through the network of personal,
prepared to let him get away with
"He writes fast, has the ability to
family and professional connections,
murder before he began to deliver,"
grasp quickly what is going on and the
he went to work in Washington for
Simes said. "I was prepared to listen,
ability to put things on paper," said
CSIS, then the Johns Hopkins Univer-
not to dismiss him. But at the same
Milan Svec, a former Czech diplomat
sity's School of Advanced Interna-
time, not to be mesmerized by this
who is now a fellow at the U.S. Insti-
tional Studies. He's been with Carne-
man."
tute of Peace in Washington. "I re-
gie since 1983. "I am very comfortable
Sovietologists have been taking a lot
spect the guy, but I disagree with him
here," he said.
3006 NATIONAL JOURNAL 12/9/89
STATE OF THE STATES
Neal R. Peirce
A Recreation Path Remakes a Vermont Town
STOWE, VT.-Anne Lusk recalls a girlhood near Pittsburgh
schools and stores and playgrounds an auto ride from home.
in a setting of "woods, salamander streams, lilac fields and
Community-centeredness has been destroyed.
caves to explore." Now her love of the outdoors has been
But a recreation path unites all kinds of citizens. You don't
translated into a 5.3-mile recreation path, a "new heart" for
need to be athletic, clever, young, fast-talking, beautiful or
this Vermont ski capital. It's such a success that towns and
rich to enjoy it.
neighborhoods across America may soon be copying it.
And if the path is laid out to link important spots in a town
The Lusk story itself is beguiling: A former fashion student
or neighborhood-shops, schools, playgrounds, residences—
in Paris and New York City model, Lusk arrives in Stowe in
then children's lives are transformed.
1971 to try life as a "ski bum." She gets married, has children,
Now they can ride their bikes to school, and instead of
plunges into civic life. Then, in 1981, she gets picked (for just
being latchkey kids glued to afternoon television, they can
$5,000 a year) to coordinate a proposed pathway to parallel
hang out after school along the path. Their congregating isn't
the narrow, dangerous mountain road from Stowe's center
threatened, because the path's heavy traffic and multi-age
toward Mount Mansfield.
users make it a safe place.
The path's future is anything but se-
Is the formula replicable in towns
cure: There's no design, no assured
less ritzy than Stowe? Lusk says yes:
right-of-way, no financing. For a year,
Activist Anne Lusk is
Sell it any place first as a safe way for
Lusk does little else but deluge the lo-
pressuring the Bush
kids to get around while Mom and
cal paper with stories of how the path-
way will beautify the town and make
Administration to bless
Dad are working. Secure a right-of-
way with clear title. If money is short,
crosstown trips safer for kids.
community recreation
build the path in stages, starting with a
Then, in three years, she personally
plain dirt surface. The money a quality
persuades 27 property owners to do-
paths as one of its
path eventually costs is tiny compared
nate, cost-free, easements for the
path's first 2.7-mile stretch. Close to
famous 1,000 points of
with what most places spend on roads
and sidewalks.
$300,000 is raised-$84,000 from a lo-
light.
Recruiting another Anne Lusk may
cal benefactor, $160,000 from federal
be tougher. She mastered small-town
funds ($118,000 from the Interior De-
diplomacy (always solicit opinions,
partment-administered Land and Wa-
never present "yes-no" choices, take
ter Conservation Fund, $42,000 from
people's suggestions and build on
general revenue sharing) and the rest from "selling" inches,
them). She walked the route first with nearby landowners,
feet, yards, rods of the path to contributors.
letting each one, with a pencil on the local map, decide on
The result isn't a manicured, English-garden-perfect path.'
every turn.
It's eight feet of asphalt flanked with generous grass strips on
Next, Lusk traipsed the route with a tree surgeon, marking
each side. The route has a quota of views of backyards and
every tree to come out, every one to stay. Then she accompa-
dumpsters.
nied a bulldozer operator, guiding him each step. Then she
But it curves and undulates; it repeatedly crosses the West
marked the path's curves with spray paint, walking ahead of
Branch River, making a sparkling asset of a mountain stream
the grader to dissuade him from his usual straight lines. All
the town had long neglected. The views change constantly:
the while she kept working on fund raising and nonstop
church steeples and barns, followed by broad meadows where
publicity.
cows graze, then groves of trees, riverscape and the moun-
So it's tough work at low pay. But walk today through the
tain.
Stowe Recreation Path's outdoor "rooms," its spacious fields
But physical loveliness isn't the biggest payoff for Lusk or
or leafy canopies. Watch "townies" and tourists having fun in
for the town of Stowe. It's how the path gets used.
a community with a new sense of togetherness. And then tell
There are mothers pushing baby carriages. Little children
yourself that it is idiosyncratic or that it wouldn't work any-
in strollers. Kids of every age, walking, running, on roller skis
where else. You simply can't. The staying power of the idea is
and roller blades, hanging out at their favorite spots along the
just too big.
path. Lots of joggers and cyclists. Adults out for brisk walks.
Lusk's new mission is to sell recreation paths everywhere.
Older folks taking it easier, a few in wheelchairs. Tourists
For the Stowe path, she's already secured special recognition
who suddenly have a way to get out of their cars and enjoy
from the New York City-based Bruner Foundation. She's
the New England townscape.
pressuring the Bush Administration to bless recreation paths
A new shared space, common ground for all ages, has
as one of its famous 1,000 points of light.
sprung into being. And on this path, sociability flourishes.
It appears she's not alone. The concept was endorsed by
Virtually everyone-local or tourist, child or senior citizen-
the President's Commission on Americans Outdoors in 1987.
makes eye contact, smiles, says hello. Often they stop for
Keith Hay, executive director of Greenways for America in
complete conversations about the weather, the stream, some-
Arlington, Va., said the "spontaneous, grass-roots citizen ef-
one's dog.
fort" for local paths is flourishing in hundreds of communi-
The social factor, Lusk said, is Stowe's big discovery and
ties from Stowe to Tucson to Los Angeles to Portland, Ore.,
potential gift to the nation. We live, she notes, in an age of
to Wichita, Kan. "And," he insisted, "we're just getting
fenced-in backyards, private barbecues, dangerous roads,
started."
NATIONAL JOURNAL 12/9/89 3007
Despite Malta Successes, Bush
Metaphorically, at least, Malta proved perfect for the part.
tary Dick Cheney wasn't told until shortly before the public
Even the weather was right for the Dec. 2-3 summit: Trapped
announcement-may only have heightened the anticipation.
on separate ships in a stormy harbor, Presidents Bush and
(Bush was so proud of his secret-keeping that he mentioned it
Mikhail S. Gorbachev seemed as powerless to command
first when ABC News's Hal Bruno asked him a day after the
Mother Nature as to control the recent surges of history.
announcement to name a particularly satisfying achievement
Malta seemed geographically suitable, too. Located mid-
of his tenure.)
way between Gibraltar and Suez, the Mediterranean island
Bush found it necessary to invite cameras and reporters
has long melded East and West. Its people speak the sole
into the Oval Office on Nov. 28 to dampen the "hyped specu-
Semitic language written officially in Latin script, a mix of
lation" about Malta (that he and Gorbachev might contem-
old Arabic and a Sicilian dialect of Italian, and laced with
plate reductions in troop levels in Europe beyond current
British lingo from the most recent of Malta's nine disparate
stints of foreign domination. (In 1972, Standard Oil Co. of
New Jersey scoured Maltese, the only tongue in which words
use a double x, in search of untoward meanings before chang-
ing its name to Exxon Corp.) Politically, too, Malta keeps
White Notebook House
about half its economy under government control and is
BY BURT SOLOMON
simultaneously an associate member of the European Com-
munity and friendly to Libya. In ideology as in culture and
proposals) that the press had based on a briefing a day earlier
geography, Malta is a crossroads.
from White House press secretary Marlin Fitzwater. On
That made it an apt backdrop for Bush in approaching a
Nov. 29, Baker outlined for reporters a five-point agenda for
crossroads of his own in a presidency that-going on 11
the reputedly agenda-less meeting. The next day, Bush under-
months-still seems younger than it is. Bush's tenure, poised
cut himself. On the morning of his departure, he offered his
between caution and timidity, could prove either ultimately
Cabinet a "preview of the summit-this nonsummit sum-
forgettable-undone by no vision and no money-or genu-
mit," he corrected himself, noting that "no matter how hard
inely memorable, from its association with historic interna-
I've tried not to use that word," he couldn't refrain.
tional events.
Expectations predictably zoomed. Michael Mandelbaum,
Bush has been at political crossroads before: at New
responsible for East-West relations at the Council on Foreign
Hampshire's 1988 primary, which he had to win after getting
Relations-the embodiment of Establishment thinking-
trounced in Iowa; arriving at the Republican convention in
foresaw "the first post-Cold War summit
the
first
day
of
New Orleans trailing his Democratic presidential rival by 17
the rest of our lives." The Soviets were just as gung-ho.
points in opinion polls; and before the NATO meeting last
Foreign Ministry spokesman Gannadi I. Gerasimov spoke of
spring, when critics disparaged him for policy diffidence.
progressing "from Yalta to Malta," referring to the 1945
Each time, he came through smashingly.
summit that reworked Europe's map. Even at the opposite
This time, he didn't make his task any easier. He failed
political pole, the reliably conservative Heritage Foundation
miserably in his sporadic attempts to tamp down expecta-
prepared for "the most important superpower summit of the
tions. It stood to reason that he and Secretary of State James
postwar period," likening it to the 1814 Congress of Vienna,
A. Baker III, a political pro, would try, given that it's stan-
which ended the ideological turmoil begun by the French
dard procedure for political campaigns. But the rush of
Revolution and ushered in "a new order" that lasted nearly a
events raised the stakes: The Berlin Wall crumbled, along
century. The thousands of journalists who converged on
with two Eastern European governments, during the four-
Malta (including a jumbojetful from Washington) further
plus weeks from when the summit was announced to when it
intensified the limelight.
took place.
Given all that, Bush performed nicely. His eight hours of
The Bush Administration, too, bore some blame, because it
chitchat with Gorbachev evidently set nothing back and
continually undermined its own efforts to keep expectations
nudged several things ahead. Malta will probably accelerate
low. The obsessive secrecy with which Bush planned what he
the pace of negotiations to control nuclear, conventional and
kept calling a "nonsummit summit"-even Defense Secre-
chemical weaponry, and laid the groundwork for furnishing
IVIn
CARL
1441
BULL
IIIII
(III
3008 NATIONAL JOURNAL 12/9/89
Still Lacks Vision of New Era
soupçons of American help for the long-suffering Soviet
into focus," The New York Times editorialized upon Bush's
economy in a way that's intended to bring it gradually into
return. In the short run, this will only bolster Bush's political
sync with the West's. As they headed their separate ways
standing. (Just before his departure, an opinion poll con-
from Malta, Bush and Gorbachev left U.S.-Soviet relations
ducted for CBS News-The Times found Bush's popularity
the warmest in decades.
had slackened slightly to 63 per cent, from a 69 per cent
Bush, for the most part, seemed crisp, controlled and busi-
approval rating in September.) In Malta, after all, Bush not
nesslike, the very image of a sober, careful-prudent-Presi-
only gave peace a chance but took time to schmooze with
dent. He had prepared thoroughly, telephoning every NATO
sailors on the U.S.S. Forrestal in his customary quest to seem
leader and enduring more than a dozen briefings from gov-
a regular guy.
ernment and academic experts in East-West relations. Coun-
Indeed, some wondered whether he took regular guy-ness
tering months of criticism that he's mainly reactive, he re-
too far. Bush's bravado in boarding small boats on rough
gained some of the initiative by spending an hour on the
water in Malta's Marsaxlokk Bay raised the specter in some
summit's first day offering 18 constructive, mostly unjazzy
minds of a sudden Quayle presidency. (There apparently was
proposals (ranging from prospective trade goodies to cooper-
never talk that the summit's weather-trimmed talks might be
ation on global warming to pushing Berlin as host to the 2004
moved ashore.) In Brussels on his way home, Bush was
Olympics) that Gorbachev generally received with favor.
forced to deny to reporters that he'd been hot-dogging.
"This was serious business," Bush told reporters afterward.
"Don't tell me that that little chop was risking anything," he
Bush took care not to gush, declining to proclaim that he's
swaggered. "You know these charismatic, macho, visionary
friends with Gorbachev or that the Cold War has ended-the
guys-they'll do anything."
kind of pronouncements that can come back to haunt.
It was the third of his adjectives that also raised some
Bush showed skill at the diplomatic and psychological
questions. In his heralded Texas A&M University speech last
tasks required in a world where neither superpower holds its
May, Bush frequently invoked his "vision" of East-West rela-
geopolitical sway of yore. (See NJ, 7/29/89, p. 1944.) Bush
tions but only vaguely defined it. Former Defense Secretary
acknowledged the circumstance ("Somebody halfway 'cross
Robert S. McNamara, on ABC's Good Morning America on
the world [from Eastern Europe can't dictate] how fast
Nov. 29, complained that neither Bush nor Gorbachev had
change should be or what change should encompass," he told
"yet put forward a vision of a post-Cold War world" and said
reporters on Nov. 28) and showed his usual attentiveness to
he hoped they'd start to do so in Malta.
diplomatic nuance and to the sensibilities of competing par-
They didn't, at least publicly, proffering no thoughts of
ties. It probably helped that he's ardent about so little, which
what Germany, say, or Eastern Europe might come to look
enabled him to revamp his views about Soviet intentions since
like. This may have stemmed partly from Bush's sensitivity to
last spring in the face of fresh evidence. (See this issue, p.
Western European leaders' fears of another Yalta. (Bush
3003.)
wouldn't take his coat from a closet without consulting U.S.
Gorbachev cooperated in Malta, apparently heeding White
allies, ABC News correspondent Brit Hume jested as Bush
House rumblings that he'd ruin the summit by unleashing the
left Malta for Brussels to brief allied leaders on his talks.) But
sort of public relations thunderbolt he frequently favors. So
Bush might also have revealed no vision of a post-Cold War
when Bush extended the "offered hand" (such as he'd dan-
world because he still lacks one.
gled before congressional Democrats at his inaugural),
It's not evident that Malta will set Bush's presidency on
Gorbachev grabbed it. "Like [Bush], I do feel that personal
fire. Nor is it clear that a sustained East-West peace would
contact is a very important factor in relations between politi-
work to his long-term political benefit; common wisdom in
cal leaders," Gorbachev said at the two leaders' unprece-
Washington increasingly is that it wouldn't. Peace augurs a
dented joint press conference on Dec. 3. In Malta, Bush and
"quick fix" in public opinion polls and a better place in
Gorbachev "established not only a relationship but sort of an
history, Brookings Institution senior fellow Stephen Hess
agenda for the near term," White House chief of staff John H.
said, but in the long run would deprive Republicans of a
Sununu crowed on ABC's This Week with David Brinkley
potent issue. Malta perhaps brought Bush as well as the
that day.
world to "the threshold of a new era" (as he put it in Brussels)
"In the last few days, he's finally brought his leadership
but evidently still not across.
NATIONAL JOURNAL 12/9/89 3009
DON'T STAY IN THE SUN TOO
LONG, OR YOU WON'T BE
ALLOWED TO VOTE
SHAREWAS BEACHES
ITIMI
Tan
Eze
WASSERMAN
Digg THE BOSTONGLOBE
DIST. BY LATINES SYNDICATE
TOTALHARIAN
HISTORY IS
REGIMES TOPPLE REWRITTEN
Between
AND NIXON
AND HENRY
ARE OVER
the Lines
PLAYING
111
INSCRUTABLE, THOSE TWO
PATTY CAKE
WITH THE
CHINESE!!
" ALERT THE MEDIA WE'VE CHOSEN A NEW PRESIDENT FOR LEBANON
"
3010 NATIONAL JOURNAL 12/9/89
INSIDE POLITICS
Jack W. Germond and Jules Witcover
Bush's Summit Euphoria Tempered by Caution
If there was one dominant attitude that seemed to mark
Yet Bush's personal sunny side always remained in view.
President Bush's postsummit comments at Malta and in
On the campaign trail last fall, as his election appeared more
Brussels, it was a sort of controlled euphoria, tempered by
and more likely, he could barely contain his exhilaration, and
caution lest he be accused of going to extremes on the
throughout his transition and first months in the presidency,
achievements of his discussions with Soviet President
he was obviously having the time of his life.
Mikhail S. Gorbachev.
Still, when it came to dealing with Gorbachev's repeated
As if to defend and justify his own determined prudence in
overtures for a lessening of tensions, and with the opportuni-
the face of a conference that is certain to raise his image as an
ties presented by the earth-shattering developments in East-
effective world leader, Bush in his Malta press conference
ern Europe, Bush's natural exuberance seemed sharply reined
took particular note that Gorbachev had "used the word
in by his caution toward change. It was as if he didn't feel able
caution, and I didn't put him up to it, either." Gorbachev had
to trust his own emotional side.
spoken of "cautiousness, and I use the favorite word of Presi-
Indeed, in relating at his Malta press conference what it
dent Bush."
was like to sit across from Gorbachev,
This determination to convey a
discussing the shape of the rapidly
sense that he is keeping his head
changing world, Bush confessed that
through these incredibly heady days of
With all his
"the emotional part of it
is hard for
world change underscores an interest-
cautiousness about
me to describe because I'm not the
ing contrast between the personal and
the presidential George Bush. Person-
future U.S.-Soviet
most articulate emotionalist."
In the months leading up to the
ally, Bush has demonstrated such a
relations, the President
Malta summit, Bush became the brunt
natural enthusiasm for people and
of widespread criticism, from Demo-
events over the years that he has often
may be correctly
crats particularly, for what appeared
seemed outright giddy. Indeed, that
attuned to the
to be a stubborn resistance to obvious
quality has made him a caricaturist's
good news from Eastern Europe. He
delight, punctuated by his lopsided
American mood.
seemed always reluctant to let his nat-
grin and gee-whiz style of discourse.
ural enthusiasm go, even on the occa-
In 1980, in his first bid for the Re-
sion of the startling destruction of the
publican presidential nomination,
Berlin Wall.
Bush's natural enthusiasm and vul-
When he announced plans for the
nerability to euphoria in fact contributed to his undoing. On
summit at sea, the President took pains to lowball it, to
upsetting Ronald Reagan in the Iowa precinct caucuses,
emphasize that there would be no agenda and no decisions
Bush almost floated out of Des Moines on a cloud of exuber-
made, and he strove to stick to that view even as tumultuous
ance. He declared on caucus night that he had "the Big Mo"
events in the East European capitals, and Gorbachev's benign
(for momertum) and that if he could win the next test, the
reaction to them, dictated an infinitely greater significance for
New Hampshire primary, "there'll be absolutely no stopping
the conference.
me."
When it was over, and Gorbachev was declaring that "the
Well, he couldn't and he was. As Bush basked in his own
world leaves one epoch of Cold War and enters another
conspicuous optimism, resisting his advisers' pleas that he
epoch," Bush could not allow himself to say, even in the
stop cheerleading and campaign more substantively, Reagan
excitement of the moment, that the Cold War was over.
whipped him in New Hampshire and in short order nailed
"We're fooling with semantics here," he said in Brussels. "I
down the nomination. Bush learned the hard way that it
don't want to give you a headline. Why do we resort to these
wasn't always good politics to let one's enthusiasm get the
code words that send different signals to different people? Is
upper hand.
the Cold War the same-I mean, is it raging like it was before
In eight years as Vice President, Bush remained personally
in times of the Berlin blockade? Absolutely not. Things have
upbeat while embracing President Reagan's deep skepticism
moved dramatically. But if I signal to you there's no Cold
about the trustworthiness of the Soviet Union. Although he
War, then you'll say, 'Well, what are you doing with troops in
did not quite label it an "evil empire" as Reagan did, Bush
Europe?'
took a very cautious approach to the most hopeful develop-
Nor could Bush bring himself to say that he and
ments in U.S.-Soviet relations.
Gorbachev were now "friends" after the summit, though
When Reagan began to move away from such skepticism
personally he is the friendliest of men. He would admit only
last year, Bush continued to express reservations that a new
to "friendly conversations" between them.
and lasting climate was developing under Gorbachev. When
For all this, Bush may be correctly attuned to the Ameri-
Reagan commended Gorbachev after their final summit
can mood in saying, as he did in Brussels, that "although this
meeting in Moscow, Bush said "the jury is still out" on the
is a time of great hope, and it is, we must not blur the
Soviet leader's intentions. Bush's cautious observations were
distinction between promising expectations and present reali-
taken by many at the time as a way to separate himself from
ties." Polls before the Malta meetings indicated, for all the
Reagan, to become more "his own man" as a presidential
criticism of Bush's pace, strong support for the proposition
candidate and to cozy up to the Republican right wing, which
that he was moving at about the right speed. That view
always mistrusted him.
certainly has been reinforced now.
NATIONAL JOURNAL 12/9/89 3011
PEOPLE
BOARDING
and a partner with the law offices of Ralph
M. Hall in Rockwall, Texas, expired, and
The terms of every one
when conservative board member Pepe J.
of the 11 members of
Mendez, a Denver lawyer, quit, Wear's job
the Legal Services
was in serious jeopardy.
Corp.'s board expired
nearly two years ago,
The five liberal-leaning board members
and yet the Bush Ad-
were poised to oust Wear. That bloc's
ministration, under
members: Hortencia Benavidez, who
pressure from conserva-
works at a Christian bookstore in El Paso;
tives who see the LSC as
Paul B. Eaglin, who had been a partner
tool used by liberals to
with the Fayetteville (N.C.) law firm of
obtain federal money to
Cooper, Davis, Eaglin and DeSilva and is
spend on lawsuits
now assistant to the chancellor at the Uni-
against the government,
versity of North Carolina (Wilmington),
hasn't come up with a
and the only member of the board to have
list of prospective nomi-
actually been a legal aid attorney; Lorain
nees acceptable to both
Miller of Detroit; Thomas F. Smegal, a
the political Right and
partner with the San Francisco law firm of
Congress.
Townsend & Townsend; and Basile J.
Uddo, a professor at the Loyola University
But on Nov. 30, Presi-
School of Law in New Orleans.
dent Bush made two re-
cess appointments to
In a highly unusual move, Bush granted
the board to prevent the
Hall a second recess appointment. He also
firing of Terrance J.
appointed John N. Erlenborn, who served
Wear, the LSC's presi-
as a Republican Member of the House
Richard A. Bloom
dent. Wear, who has
representing Illinois from 1965-85. Erlen-
been doing some heavy
born is currently a partner in the Washing-
lobbying for the ap-
ton office of the Chicago law firm of
pointment of more con-
Seyfarth, Shaw, Fairweather & Geraldson.
Erlenborn: Named to Legal Services board
servatives to the board,
was general counsel to
The remaining members of the board are
the Republican side of the Sen-
conservatives. Michael B. Wallace, who
ate Agriculture, Nutrition and
has been on the board since 1984, became
Forestry Committee when
chairman last December. He's a partner in
Sen. Jesse A. Helms, R-N.C.,
the Jackson (Miss.) office of the New Or-
chaired the committee during
leans law firm of Phelps, Dunbar, Marks,
the period when Republicans
Claverie & Sims. Wallace succeeded W.
had a majority in the chamber.
Clark Durant III, a partner in the Detroit
When Democrats regained
law firm of Durant & Durant, as chairman;
control of the Senate in 1987,
Durant remains on the board. Claude G.
Helms took over as ranking
Swafford works out of a law practice that
Republican on the Senate For-
bears his name in South Pittsburg, Tenn.
eign Relations Committee,
Robert A. Valois is a partner with Maupin
surrendering the top GOP slot
Taylor Ellis & Adams P.C. in Raleigh,
on the Agriculture panel to
N.C.
Sen. Richard G. Lugar of Indi-
ana, and costing Wear his job.
BAILOUT
Wear wound up as a partner in
For months, M. Danny Wall had been tak-
the Washington office of the
ing a pounding from critics in Congress, the
Minneapolis law firm of
news media and the banking industry; on
O'Connor & Hannan. He be-
Dec. 4, Wall, director of the Treasury De-
came president of the LSC in
partment's Office of Thrift Supervision, an-
July 1988. He's held his posi-
nounced that he was hitting the silk. The
tion only because the board
former staff director on the Republican side
Richard A. Bloom
has a six-to-five conservative
of the Senate Banking, Housing and Urban
majority. When the term of J.
Affairs Committee, Wall was nominated to
Blakely Hall, a conservative
head the Federal Home Loan Bank Board
granted a recess appointment
in 1987. In recent months, Wall has been
Wall: Bails out as S&L chief
by President Reagan last year
heavily criticized for, among other things,
3012 NATIONAL JOURNAL 12/9/89
Washington's Movers and Shakers
failing to seize the floundering Lincoln Sav-
D.C. INC.
ings and Loan in Irvine, Calif., soon
enough. Wall allowed the S&L to remain
Peter J. Gossens, who's
open despite the fact that his own examin-
been an aide on the mi-
ers recommended its closure two years ago.
nority side of the House
Wall got his current job earlier this year
Appropriations Com-
when the FHLBB was folded into the Trea-
mittee since 1986, has
sury Department and the Resolution Trust
joined the Arlington
Corp. was created to clean up the S&L
(Va.) office of St. Louis-
mess. No successor has been named for
based General Dynam-
Wall, who didn't say what he'd do next.
ics Corp. Gossens,
whose new title is legis-
INTEREST GROUPS
lative affairs manager,
succeeds H. Gerald
Virginia Sassaman, director of media rela-
Staub, who's now direc-
tions at the American University, is about
tor of Navy aircraft pro-
to become chief press aide at the Women's
grams for General Dy-
Legal Defense Fund. Sassaman succeeds
namics in Arlington.
Ann Pauley, who's now public relations di-
No replacement on the
rector at Washington's Trinity College.
committee.
Carolyn Fray, AU's public information of-
ficer, will succeed Sassaman.
Gregory S. Dole has
joined the McDonnell
Phil G. Goulding, who's been vice president
Douglas Corp., another
for public affairs at the American Petro-
defense contractor
leum Institute, is retiring after 14 years on
headquartered in St.
the job. He'll be replaced by Arthur E.
Louis, as director of
Wiese, who's currently director of public
commercial programs-
relations.
domestic and interna-
tional in the Crystal
Jean Hutter, who was an associate in the
John Eisele
City (Va.) office. It's a
government affairs division of the National
new position. He was
Sassaman: Moves to women's defense fund
Association of Regional Councils, which
assistant Transporta-
represents regional governments across
tion secretary for policy and
America, has become director of legislation
international affairs; before
at the National Housing Conference. It's a
that, he was associate general
new position, and her old job will not be
counsel at the Transportation
filled.
Department. He's been re-
placed by Jeffery Shane, who
AT THE BAR
was deputy assistant secretary
of State for transportation af-
Christopher G. Mackaronis, who had been
fairs in the Bureau of Eco-
manager of the advocacy section of the
nomic and Business Affairs.
worker equity department at the American
Association of Retired Persons, is now a
POLITICS
partner with the Washington office of the
Chicago law firm of Bell, Boyd & Lloyd.
Monte Friedkin, who chaired
He's been replaced by Cathy Ventrell-
this year's Democratic Gala,
Monsees, a senior AARP lawyer since
the fund-raising event held in
1985.
Washington on Oct. 24, will
become finance chairman of
J. E. (Sandy) Murdock III, who had been a
the Democratic National
partner in the Washington law firm of
Committee. He's holding the
Heron, Burchette, Ruckert & Rothwell, is
job on an acting basis for now;
now a partner with the Washington office
he won't be voted in until
of the Knoxville (Tenn.) law firm of Baker,
March. Friedkin, who was
Worthington, Crossley, Stansberry &
president of Friedkin Indus-
Woolf. The firm was established last year
tries Inc. in Youngstown,
by, among others, former White House
Ohio, will be replacing C. Vic-
chief of staff Howard H. Baker Jr.
tor Raiser II, who had been
Richard A. Bloom
Murdock was formerly chief counsel at the
the finance chairman under
Federal Aviation Administration.
former DNC chairman Paul
Mackaronis: Leaves AARP for law firm
NATIONAL JOURNAL 12/9/89 3013
PEOPLE
Washington's Movers and Shakers
G. Kirk Jr., and had
to Schultz has been named yet at Public
hung around to work as
Citizen.
a transitional figure.
Raiser is currently of
Lorraine A. Voles will soon become press
counsel in the Washing-
secretary to Sen. Tom Harkin, D-Iowa,
ton office of the Cleve-
who's expected to face a tough reelection
land law firm of Jones,
fight next year. Voles has been national co-
Day, Reavis & Pogue.
ordinator of Mothers and Others for Pesti-
cide Limits at the Natural Resources De-
BUSH LEAGUE
fense Council Inc. since April; that's the
organization that launched the highly suc-
From our where-are-
cessful campaign against using Alar on ap-
they-now file: Robert
ples. Before that, she was national deputy
M. Guttman, who was
press secretary for the unsuccessful Duka-
briefly chief of staff to
kis-Bentsen presidential campaign, and
Vice President Dan
worked the Iowa precinct caucuses for the
Quayle, is now a full-
Dukakis campaign. She'll succeed Pam
time consultant for pol-
McKinney, who's been Harkin's press aide
icy development at the
for six years; McKinney is getting the same
Interstate Conference of
job in the office of Sen. Brock Adams, D-
Employment Security
Wash.
Agencies Inc. in Wash-
ington. Guttman, who
Richard Doyle, senior defense analyst on
was minority counsel
the minority side of the Senate Budget
on the Senate Labor
Committee, is leaving to teach at the Naval
and Human Resources
Postgraduate School in Monterey, Calif.
Subcommittee on Labor
He'll be an associate professor in the de-
Richard A. Bloom
and counsel to then-
partment of administrative sciences. No re-
Sen. Quayle, has been
placement for Doyle has been named at the
replaced on the vice
committee.
presidential staff by
Schultz: Leaves Nader group for House
William Kristol, once
IN THE TANKS
staff chief to former
Education Secretary William
Stephen F. Dachi, U.S. consul general in
J. Bennett. Also at the confer-
Sao Paulo, Brazil, is now a visiting senior
ence, Emily DeRocco, who
fellow at the Center for Strategic and Inter-
has been deputy Interior un-
national Studies.
dersecretary, is executive vice
president. She succeeds Rich-
AROUND THE AGENCIES
ard Q. Praeger Jr., who said
he plans to move to Oregon
Patricia Gates Lynch, who had been am-
but beyond that doesn't know
bassador to Madagascar, has been named
what he'll do. Her old post at
director of corporate affairs at Radio Free
Interior has not been filled yet.
Europe and Radio Liberty, which broad-
cast the U.S. government's version of news
ON THE HILL
behind what remains of the Iron Curtain.
Lynch was the former host of the Voice of
William B. Schultz, who had
America's Breakfast Show. She succeeds
been a senior lawyer with the
Kenneth Thompson, who has moved to the
Public Citizen Litigation
Munich headquarters of Radio Free Eu-
Group, one of the many pub-
rope and Radio Liberty, where he's director
lic-interest groups founded by
of news and current affairs.
Ralph Nader, is now counsel
to the House Energy and
Ann A. Colgrove is the new director of pol-
Commerce Subcommittee on
icy, planning and research at the National
Health and the Environment.
Endowment for the Arts. She was special
Schultz succeeds William V.
assistant to the assistant Labor secretary for
Corr, who's now chief counsel
policy, Jenna Dorn; before that, Colgrove
John Eisele
and staff director for the Sen-
worked on the Bush presidential campaign
ate Judiciary Subcommittee
last year. She's filling a long-vacant position
on Antitrust, Monopolies and
at the endowment.
Doyle: Will teach at Navy school
Business Rights. No successor
-David L. Wilson
3014 NATIONAL JOURNAL 12/9/89
OPINION OUTLOOK
Views on National Security
IS NATO NECESSARY?
COMMUNISM'S CRASH
Do you think the NATO alliance should be maintained, or
Which of the following statements best describes your view
is the alliance not necessary anymore? (Gallup Organiza-
of whether Communism is dying throughout the world?
tion Inc.)
(Gordon S. Black Corp. for USA Today)
10/89
11/89
Maintain
NATO
No
Americans West Germans
NATO
not necessary
opinion
Communism is dying
25%
29%
Dutch
81%
15%
4%
Communism is being reshaped
55
51
Canadians
78
8
14
to be more open
Americans
75
10
15
Party hard-liners will wait for
17
15
British
71
15
14
an opening to crack down
Belgians
69
13
18
Luxembourgers
69
10
21
The United States has offered some aid to reformers in Po-
West Germans
63
13
24
land and Hungary, but President Bush has been urged to
Italians
58
18
24
do more to help those countries and others. Do you feel the
Turks
50
14
36
United
States is ? (Black for USA Today)
Danes
43
13
44
11/89
Spaniards
30
34
36
Americans
West Germans
Portuguese
26
9
65
Doing too much
26%
7%
Sending right amount
49
43
It has been proposed that as long as the Soviet Union has
Not doing enough
15
31
nuclear weapons that can reach targets in Western Europe,
Don't know
10
19
NATO should keep a number of similar weapons in West-
ern Europe. Do you agree? (Gallup)
PEACE DIVIDEND?
10/89
Agree
Disagree
No opinion
Dutch
66%
29%
5%
Defense spending in the United States during the Gorba-
Canadians
63
26
11
chev years continued to increase and now stands at about
Americans
62
21
17
$300 billion a year. Some say this amount is necessary.
British
60
22
18
Others say we no longer need to spend this much. Do you
Belgians
59
20
21
think the changes in the Soviet Union and Eastern Bloc
Luxembourgers
51
22
27
countries mean the United States can make major cuts in
West Germans
46
22
32
military spending without endangering our security? (ABC
Italians
38
32
30
News-The Washington Post)
Turks
42
18
40
11/89
Danes
27
24
49
Yes, make major cuts
45%
Spaniards
22
40
38
No, cannot make major cuts
50
Portuguese
21
11
68
Don't know
5
NATO
MARGULIES
01989 HOUSTON POST
Warsaw
Packed
EXIT VISAS
NATIONAL JOURNAL 12/9/89 3015
THE NUMBERS GAME
The Data Behind the Policy
Government Payrolls Get Longer and Longer
One the Gipper Lost
Outside the Beltway
Presidential candidate Ronald Reagan often promised that if
Nearly 14.5 million Americans worked for state and local
elected, he would reduce the federal bureaucracy. He didn't
governments last year. For full-timers only, that's about 505
even come close; during his Administration, federal civilian
government workers for every 10,000 people, up from 497 per
employment reached a post-World War II high. Last year,
10,000 in 1988, according to the Census Bureau. There were
the number of civilians on Uncle Sam's payroll rose by 0.7 per
147 state workers for every 10,000 people; local government
cent, by 21,486 employees. That increase was enough to push
employees accounted for 358 per 10,000. The table, based on
the total over the 3.1 million mark, according to a just-
Census Bureau studies, shows how state and local govern-
released Census Bureau study.
ment employees earn their salaries.
During World War II, federal civilian employment peaked
Nearly half, or 6.1 million, of state and local government
at 3.4 million, dropped to 2 million in 1947 and, by 1951,
employees were employed in education-related fields full-
gradually climbed to 2.5 million. The total didn't change
time, where an additional 888,000 employees have joined the
much until 1967. That year, largely as a result of President
ranks since 1983. That's an average increase of 2 per cent a
Johnson's Great Society programs, federal civilian employ-
year, the largest gain in terms of absolute numbers of work-
ment jumped to almost 3 million. From 1968-84, it fluctuated
ers. But the biggest percentage jump came in the corrections
between 2.8 million and 3 million. In 1985, federal civilian
field, which rose an average of 7.8 per cent annually over the
employment topped 3 million. More than three out of five
past five years, up to 435,000 in 1988.
federal employees work for the Postal Service or for agencies
Total U.S. civilian government employment, counting fed-
involved in defense or international affairs. From 1947-88,
eral, state and local workers, was nearly 17.6 million in 1988,
the U.S. population grew from 155 million to 246 million.
up about 1.8 per cent from 1987. The number of state em-
ployees rose 120,955-or 2.9 per cent-during that period.
Local government workers increased by 164,574, a jump of
about 1.6 per cent.
STATISTIC OF THE WEEK
Public service in a cold climate
Of the 50 states,
Alaska had the highest share of state and local
employees last year-789 for every 10,000 Alas-
kans-according to the Census Bureau. Wyoming
was next, with 741 per 10,000. Pennsylvania, with
395 per 10,000, brought up the rear.
Adding It Up
In October 1988, the total payroll for civilians working for
federal, state and local governments was $34.2 billion, up 5.6
per cent from October 1987. Federal employees got $8 bil-
lion, up 0.7 per cent over 1987; state employees got $7.8
billion, up 7.5 per cent; and local employees got $18.4 billion,
up 7.1 per cent, according to the Census Bureau.
-David L. Wilson
How Employees of State and Local Governments
Earn Their Salaries
(1988 figures)
Per 10,000
Activity
population
Education
249.2
Public safety (police, fire and corrections)
55.2
Health and hospitals
54.4
Highways
22.0
Financial and general government administration
21.8
Public welfare
17.5
Judicial and legal
10.7
All other activities
74.0
3016 NATIONAL JOURNAL 12/9/89
Save $70 on National Journal
New Subscribers Only
Special Introductory Offer!
Check One:
Check or Credit Card
Bill Me
One Year (50 issues)
$554 (Save $70!)
$624
(D.C. residents add 6% sales tax.)
6 Months (25 issues)
$277 (Save $35!)
$312
Payment enclosed
Charge my:
Visa
MasterCard
American Express
Bill me
Account number
Exp. date
Signature
Date
National
Name
Title
Organization
Journal
Business phone
Address
What the Leaders Read.
1730 M Street, NW
City, State, Zip
Washington, DC 20036
Please check the one box which best describes the field in which you work:
Federal Government:
Foreign Government
Media
Executive Office of the President
Business & Industry, including Law,
Think Tank, Research Organization, Educational
Cabinet Dept. or Federal Agency
Medicine, Consulting, etc.
Institution
Congress
Trade Union, Professional Association,
Library (academic or public)
State or Local Government
Political Organization, or Interest Group
Other:
For faster service, call TOLL-FREE: 1-800-444-4078. (In D.C., call 857-1422.)
NO POSTAGE
NECESSARY
IF MAILED
IN THE
UNITED STATES
BUSINESS REPLY MAIL
FIRST CLASS MAIL PERMIT NO. 10574 WASHINGTON, D.C.
POSTAGE WILL BE PAID BY ADDRESSEE
NATIONAL JOURNAL, INC.
1730 M Street, N.W.
Washington, D.C. 20077-6368
INFOFILE
A Digest of Studies, Surveys and Books
AGRICULTURE
HEALTH
Alternative Agriculture
Seniors 2000:
Farmers can take advantage
Continental Health Affiliates, Inc. Roundtable
of profitable and ecologically
"Today's seniors are healthier, wealthier and more indepen-
sound alternative ways to
dent than their predecessors," asserted Jack Rosen, chairman
maintain yields, conserve
of the board of the health care provider company that spon-
water and reduce costs, notes
sored this panel discussion by experts concerned about the
the National Research
growing elderly population. Other participants pointed out,
Council. Pesticides in fruits
however, that people age 65-75 with health care problems are
and vegetables and the use of
not registering enormous strides toward improving their fi-
antibiotics in swine and beef
nancial condition. Continental Health Affiliates Inc., Wash-
production can be reduced.
ington Communications Group, 1615 M St. NW, Suite 220,
National Academy Press,
Washington, D.C., 20036. 13 pages. Free.
2101 Constitution Ave. NW,
ALTERNATIVE
Washington, D.C., 20418.
INTERNATIONAL AFFAIRS
448 pages. $29.95 hardcover
AGRICULTURE
Israel and the World After 40 Years
(ISBN 0-309-03987-8);
Israel encompasses socialism amidst capitalism, Third World
$19.95 paper (ISBN 0-309-
NATIONAL RESEARCH COUNCIL
inefficiency alongside technological sophistication; pietists
03985-1).
living next to secularists, observes Tel Aviv University politi-
cal scientist Aaron S. Klieman. "Physical geography may
DEFENSE MANAGEMENT
have placed Israel squarely in the Middle East, but it has yet
Military Balance 1989-1990
to become truly of the Middle East in other than the military
This compilation by the independent, London-based Interna-
sphere." Pergamon-Brassey's International Defense Publish-
tional Institute for Strategic Studies quantifies world military
ers Inc., 8000 Westpark Dr., Fourth Floor, McLean, Va.,
forces and expenditures by country. It offers data on equip-
22102. 275 pages. $24.95 (ISBN 0-08-034942-0).
ment and military personnel and includes essays on NATO,
the Warsaw Pact and arms control proposals. The name,
POLITICS
maker and country of origin of all the world's military air-
Political Resource Directory: National Edition 1990
craft are listed, and tables offer data on nuclear delivery
This reference lists more than 2,400 political organizations
means and artillery capabilities. Brassey's (U.S.), Maxwell
and 3,400 key political professionals, providing addresses and
House, Fairview Park, Elmsford, N.Y., 10523. 200 pages.
telephone and fax numbers. Indexed by individual, region
$35 (ISBN 0-08-037569-3).
and specialization, it is aimed at users in need of such services
as newsletters, fund-raising consultants, media experts and
FOREIGN AFFAIRS
full campaign services. Political Resources Inc., P.O. Box
From Hiroshima to Glasnost:
363, Rye, N.Y., 10580. 392 pages. $95 (ISBN 0-944320-02-3).
At the Center of Decision-A Memoir
The United States in the postwar period has met its goals of
Politics and Process:
expanding production, development and trade, but "perhaps
New Essays in Democratic Thought
we were too generous in extending grants, loans and general
The American electoral process is a market in which the
economic help while paying inadequate attention to U.S.
currency is votes and party competition is the primary mech-
requirements for our own economic health," writes veteran
anism for implementing public policy, note economist Geof-
diplomat and arms control expert Paul H. Nitze in these
frey Brennan and philosophy professor Loren E. Lomasky in
memoirs. He describes his key roles in the Pentagon, White
introducing these essays. They compare the role of public
House and State Department during the Cuban missile crisis,
choice in a democracy with human behavior in conventional
the Vietnam war and the negotiation of the SALT and Inter-
markets, calling attention to a "deep-seated skepticism"
mediate-Range Nuclear Forces Treaties. Grove Weidenfeld,
about democracy. Cambridge University Press, 40 W. 20th
841 Broadway, New York, N.Y., 10003. 504 pages. $25
St., New York, N.Y., 10011. 238 pages. $39.50 (ISBN 0-521-
(ISBN 1-55584-110-4).
35043-3).
Second Chance:
SCIENCE AND TECHNOLOGY
The United States and Indochina in the 1990s
Science and Technology in the Academic Enterprise:
The renewed threat of a Khmer Rouge takeover has forced
Status, Trends, and Issues
the Bush Administration to get involved and support Cambo-
"The nation now faces decisions of how, to whom, to what
dia's non-Communist resisters, notes Frederick Z Brown,
extent and for what purposes to allot limited resources" for
former foreign service officer and Senate Foreign Relations
academic research, contends a council of scientists, policy
Committee aide. But "once more, the welfare of the Cambo-
makers and industry engineers. They explore the role of uni-
dian people seems to be the least important concern of those
versities, the declining number of students heading for scien-
forces-Communists and non-Communists alike-seeking to
tific and academic careers, the governance of universities and
shape Cambodia's political future." He cites normalization of
the research agenda on industry, economics, the environment
U.S. ties with Vietnam as a necessary part of a solution.
and health. Government-University-Industry Research
Council on Foreign Relations Press, 58 E. 68th St., New
Roundtable, 2102 Constitution Ave. NW, Washington, D.C.,
York, N.Y., 10021. 163 pages. $14.95 (ISBN 0-87609-069-2).
20418. 100 pages. Free (ISBN 0-309-04175-9).
NATIONAL JOURNAL 12/9/89 3017
AT A GLANCE
BUDGET
ploy the rail-mobile MX or the road-mobile single-warhead
Midgetman, Congress this year appropriated a $1.1 billion
Long-term deficit reduction
Not that anyone is sur-
pot of money for the missiles, leaving it up to President Bush
prised, but the Congressional Budget Office is projecting that
and the Pentagon to split the funds between the two. The rail-
this fall's deficit cutting "reconciliation" will accomplish little
mobile MX system is expected to cost $5.6 billion through
by way of long-term deficit reduction. Preliminary CBO fig-
fiscal 1994. Earlier this year, Defense Secretary Dick Cheney
ures circulating on Capitol Hill peg the deficit at $128 billion
had wanted to cancel the Midgetman program, which could
for fiscal 1990 and $134 billion for 1991, gradually declining
cost more than $30 billion, but was overruled by Bush, who
to $109 billion in 1994. If the CBO is proved right, the White
has endorsed deployment of both systems. Few observers
House and Congress would have to cut the deficit by $60
believe, however, that future defense budgets will be able to
billion in fiscal 1991 to avoid across-the-board spending cuts
support a two-missile solution to the seemingly endless mis-
under the 1985 Balanced Budget Act. But the Office of Man-
sile vulnerability debate. (See NJ, 4/15/89, p. 958.)
agement and Budget, which makes the final determination of
how much deficit cutting is needed to avoid such cuts, is
ENVIRONMENT
expected to make the job easier. OMB director Richard G.
Darman has said his agency's estimate of the 1991 deficit will
Golden State farm water
Federal water supply contracts
be about $100 billion; that would require $26 billion in sav-
with California farmers will be renegotiated by the Interior
ings to avoid across-the-board cuts. Final OMB estimates will
Department, but could be amended based on the results of
appear in President Bush's 1991 budget, due on Capitol Hill
subsequent studies of their environmental impacts, Interior
on Jan. 22. (See this issue, p. 3021.)
Secretary Manuel Lujan Jr. announced late last month. The
move ended internal Bush Administration discord over re-
DEFENSE MANAGEMENT
newal of the 40-year water contracts with farmers in Califor-
nia's Central Valley. Lujan, seeking to provide farmers with a
Base closure revisited
Having spent 11 months review-
steady supply of water, wanted to renew the contracts with-
ing the work of the Pentagon's Commission on Base Closure
out extensive environmental studies. But officials of the Envi-
and Realignment-which last December recommended clos-
ronmental Protection Agency and the White House Council
ing 86 military installations and revamping 59 others for an
on Environmental Quality argued that the government
estimated annual savings of $693.6 million-the General Ac-
should study the impact of the massive water diversion on the
counting Office finally weighed in with an analysis of 15 of
western rivers. Under a compromise, the farmers will con-
the largest targeted bases. The GAO found that the commis-
tinue to get water channeled by federally built dams, but the
sion had overstated annual savings by as much as $170 mil-
price, time and manner of delivery and conservation methods
lion. Nonetheless, it concluded, there is "still a substantial
could be renegotiated if studies show a need to protect the
annual savings." The GAO agreed with the commission's
environment, an Interior spokesman said.
decision not to consider environmental restoration costs at
the condemned bases, which are handled under another Pen-
HEALTH
tagon program. But it determined that those costs could run
as high as $661 million, money that must be found some-
Infant mortality
The National Commission to Prevent In-
where if the bases are to be put to other uses by 1995. In the
fant Mortality, a congressionally mandated group chaired by
case of Indiana's Jefferson Proving Ground, which has been
former Sen. Lawton Chiles, D-Fla., hailed little-noted legisla-
peppered with 23 million rounds of ammunition since 1941,
tion passed by Congress at the end of the session approving
the commission had said that closure would yield annual
three low-cost programs to improve pregnant women's use of
savings of $6.6 million, with closure costs to be repaid in six
prenatal services. They provide home visits to high-risk
years. The GAO, however, estimated those annual savings at
women by health workers, improved coordination and co-
only $6.3 million and said that it could take 38 to more than
location of social services to such women and testing of a
200 years to recover the closure costs. The Pentagon stands
pregnancy handbook. Congress has yet to set aside money;
by the commission's work, which has been endorsed by Con-
the law specified that funds not be diverted from current
gress despite stiff resistance by Members representing af-
maternal health programs. Receiving more attention was a
fected districts. Defense Secretary Dick Cheney has said that
big-ticket measure requiring states to offer medical care to all
defense cuts in the years ahead would require another round
pregnant women and mothers and their children up to age 6
of base closures, but Members do not appear eager to go
with incomes as high as 133 per cent of the federal poverty
through this ordeal again. The closure of foreign bases does
line. Though less inclusive than that sought by Rep. Henry A.
not require Congress's OK. (See NJ, 4/1/89, p. 801.)
Waxman, D-Calif., chairman of the Energy and Commerce
Subcommittee on Health and the Environment, the measure
*
goes far beyond prior law, which covered mothers with in-
MX
on
the
road In the latest twist in the long-running
comes up to 100 per cent of the poverty line.
MX missile basing saga, the Air Force late last month an-
nounced that the 50 of the 10-warhead nuclear missiles now
IMMIGRATION
in former Minuteman III silos in Wyoming will be uprooted
and placed on special trains based at Air Force facilities in
Veto of the Chinese students bill
Congress is expected
seven states. In a crisis, the missile trains would be moved out
to vote early in the second session to reenact a bill permitting
of their garrisons to cruise commercial rail tracks. After yet
Chinese students involved in their nation's pro-democracy
another round of legislative wrangling over whether to de-
movement to remain in the United States. President Bush
3018 NATIONAL JOURNAL 12/9/89
A Weekly Checklist of Major Issues
announced on Nov. 30 that he would pocket veto the mea-
prepared for Rangel and Sen. Sam Nunn, D-Ga., overcrowd-
sure, but would seek to accomplish the objectives of the
ing at federal prisons has now reached 56 per cent above
legislation through administrative means. A new vote "will
capacity. The cost of building additional prison space may
be taken first thing in January," said a spokesman for Rep.
prove enormous, with GAO estimates at $51,340 to house
Nancy Pelosi, D-Calif., sponsor of the original bill, which was
each added prisoner. State prison systems are now at 23 per
passed by the House by a 403-0 vote and by the Senate by
cent above capacity, the GAO added. In a statement, Rangel
unanimous consent. Congressional leaders say they regard
blamed the soaring prison population growth on the "root
Bush's action as a formal-rather than a pocket-veto and
causes" of drug abuse, including homelessness, joblessness
may seek a vote to override it. Supporters of the measure
and poverty. At the state and local level, Rangel added,
argue that Bush's proposal would force students to apply for
alternatives to incarceration, including vocational training
relief on a case-by-case basis and thus increase their exposure
and education, should be considered. Rangel has introduced
to possible retribution if they ever return to their homeland.
legislation to create such alternatives for nonviolent offend-
In notifying Congress that he would not sign the bill, Bush
ers. Meanwhile, Senate Judiciary Committee chairman Jo-
said his objective is to try to preserve U.S.-Chinese student
seph R. Biden Jr., D-Del., is planning legislation to boost the
exchange programs. Of 40,000 Chinese students now in this
number of federal judges to help cope with the influx of drug-
country, about 30,000 hold visas that require them to return
related cases.
to China for at least two years before they can apply to return
to the United States. Following the June massacre in Beijing's
POLITICS
Tienanmen Square, the Bush Administration extended stu-
dent visas for a year.
"Soft" money in 1988 "Soft" money played a greater role
in last year's elections than was previously disclosed, accord-
INTERNATIONAL AFFAIRS
ing to a survey by the nonpartisan Center for Responsive
Politics. The survey found that Democratic and Republican
Bases in the Philippines
The air cover provided by U.S.
Party organizations in nine states received an aggregate $28.5
planes from Clark Air Base to Philippine government troops
million (the GOP got $16.7 million, the Democrats $11.8
combating rebel forces is likely to complicate negotiations for
million) during 1987-88, in addition to the more than $40
a new U.S. base rights deal. Philippine President Corazon C.
million the two national party committees had previously
Aquino requested the help, which probably saved her govern-
reported receiving. Soft contributions cannot legally be used
ment from a military takeover but might also have weakened
to aid federal candidates but can be spent on state and local
her politically by reinforcing the public perception that she is
campaigns, get-out-the-vote drives and generic "party-build-
dependent upon the United States. Negotiations had been
ing" activities. The center was unable to trace how the nine
scheduled to begin this month on renewing the base agree-
state parties spent the soft dollars, but executive director
ment that expires on Sept. 16, 1991. Though Philippine pub-
Ellen S. Miller said that many contributions came from out-
lic opinion polls have generally showed an acceptance of the
of-state donors in the campaign's final weeks, leading her
bases, politicians have insisted that they are a remnant of U.S.
group to suspect that the effort was being coordinated to aid
imperialism and that the government won't be independent
the parties' national tickets. The nine states surveyed-Cali-
until the bases are gone. U.S. analysts are concerned about
fornia, Colorado, Florida, Illinois, Missouri, North Carolina,
the timing of the negotiations because they see parallels with
Pennsylvania, Texas and Washington-were chosen because
the situation in Greece. The United States must vacate its
they were expected to be presidential election battlegrounds
bases in Greece by May 20, 1990, under the terms of an
last year. Soft money, Miller said, has become "an end run
agreement that expired last December. Because of political
around the campaign finance laws." (See this issue, p. 2980.)
upheaval in Greece-an interim government is holding office
prior to elections next April-negotiations on a new agree-
ment have been suspended. "You don't want to wait until six
TRANSPORTATION
weeks before you have to leave to know where you stand,"
The Eastern Air Lines veto
Transportation Secretary Sam-
said a congressional analyst who specializes in overseas bases.
uel K. Skinner said that the presidential veto of labor-sup-
(See NJ, 2/11/89, p. 339.)
ported legislation to create a blue-ribbon panel to make rec-
ommendations on ending the Eastern Air Lines Inc. strike
LEGAL AFFAIRS
was among the best decisions in the transportation arena
during the Bush Administration's first year. "It's not the
Drug arrests and prisons Federal prisons suffer from dra-
federal government's job" to intervene in labor disputes,
matic overcrowding, primarily the result of increased incar-
Skinner said during a year-end wrap-up session with report-
ceration rates for drug abusers, mandatory sentencing and
ers on Dec. 4. But the Eastern machinists union, which went
tougher antidrug laws, according to a General Accounting
on strike in March, is furious about the veto. "The people in
Office report. Over the past two years, drug offenders ac-
the Administration, including Bush himself, would rather see
counted for 79 per cent of the increase in federal prisoners,
thousands and thousands [fewer] union members in the
said a GAO fact sheet prepared for Rep. Charles B. Rangel,
United States, and this is one way to get rid of a bunch of
D-N.Y., chairman of the Select Committee on Narcotics
militant union members," said William J. Holyater, director
Abuse and Control. Suprisingly few of the prisoners are vio-
of legislative and political action for the International Associ-
lence-prone; 94 per cent of first-time drug offenders and 62
ation of Machinists and Aerospace Workers. "They are out to
per cent of repeat drug law violators are without a history of
destroy organized labor in this country-it costs their bud-
violence, the study said. According to another GAO report
dies money and power."
NATIONAL JOURNAL 12/9/89 3019
DEFENSE FOCUS/DAVID C. MORRISON
W
hen President Bush, in his second major address on East-
share Open Skies' expenses, estimated by a specialist at $12
West relations last May 12, proposed before an audience at
million for a small aircraft with sensors and $3 million a year in
Texas A&M University to resuscitate "Open Skies," a relic of the
operating costs. All types of imaging sensors would be permit-
Eisenhower Administration, the initial reaction of the pundits
ted-from standard high-speed cameras to "forward-looking in-
was not kind.
frared" devices that make thermal "photos" at night-but not
President Eisenhower, after all, first floated the idea that the
electronic eavesdropping gear.
two superpowers open their airspace to surveillance overflights
The U.S. vision of how Open Skies might work in practice,
because he had little else to propose at the first U.S.-Soviet
still subject to negotiation, would have the inspecting nation's
summit in Vienna in 1955. "We were sure" the Soviets would
aircraft arrive at a designated airport in the inspectee's territory.
never accept, Eisenhower later said. Nor did they. "Who are you
After filing a flight plan, the inspectors would have to wait 24
trying to fool?" Soviet Premier Nikita S. Khrushchev demanded
hours while the plane is examined for illegal sensors, air crews
of Eisenhower. Open Skies would simply "give your strategic
rest up and disputes over flight plans are resolved. ("Air safety
forces the chance to gather tar-
considerations should be the
get information and zero in on
Opening the Skies
only area restrictions," a State
us," Khrushchev said. (Former
Department fact sheet says.)
Soviet Ambassador Anatoly
Observers from the nation being
Dobrynin has said that Khru-
surveilled would go along for
shchev, surmising that the
the flight.
United States would never
The United States also seeks
really take da for an answer,
inspection quotas based on geo-
wanted to accept Open Skies but
graphic size that would allow
was overruled by the Politburo.)
two and a half times as many
A unilateral U.S. Open Skies
U.S. missions over the Soviet
program, blasted into the open
Union as that country would be
when the Soviets downed a U-2
able to conduct over the United
spy plane, aborted another su-
States. The Soviets have not yet
perpower summit in 1960.
If, in the less chilly age of
Richard A. Bloom
endorsed this scheme.
Questions also remain to be
Gorbachev and glasnost, out-
resolved concerning the use of
and-out Soviet rejection of Open
data collected by Open Skies
Skies II was less likely, Bush's
Bush has revived Eisenhower's idea.
planes. "I can see a real need for
touting of the plan still struck
interpretation experts," Jeffrey
many observers as one more manifestation of his alleged inade-
P. Tracey, an electro-optical systems specialist with Intera Tech-
quacies in grappling with that "vision thing." It thus provided
nologies Ltd., an Ottawa-based airborne sensor company, told
fodder for several days of derisive commentary.
the Stimson gathering. "If you misinterpret data and start point-
"We were a little bemused by the way the press reacted to the
ing fingers," he warned, "that's going to be a real problem."
initial announcement in the A&M speech," an Administration
Even if all of the complexities can be ironed out, Open Skies
official told a gathering of reporters and analysts at a late-No-
might still strike many as redundant when so many arms trea-
vember Open Skies briefing staged by the Henry L. Stimson
ties, each with its own elaborate verification measures, are on the
Center, a new arms control think tank in Washington. "The
fast track, and when the earth's space teems with spy birds.
general tenor of the commentary was a) that it was anachronistic
Canada's External Affairs Department argues in a paper that
and b) that it was pretty much [superseded by] the advent of
though Open Skies "is not treaty-related, there will be inevitably
satellites," he said, adding that "it continued to be pursued quite
some [reinforcing] interplay with existing and proposed arms
actively in the government to an escalating degree, but had zero
control agreements."
public visibility."
And aircraft can do things that satellites cannot. "There is a
Now, having been endorsed in a May 30 NATO communiqué
big difference between taking pictures from 2 miles up rather
and treated positively by the Soviet side at the ministerial meet-
than 200 miles up," the U.S. official said at the Stimson briefing.
ing in Wyoming in September, an Open Skies treaty could well
Moreover, he noted, satellites "are not cheap, and Open Skies
be submitted for Senate consideration by this time next year.
aircraft are extremely valuable in that context." Open Skies, in
(True to Bush's notion that his Open Skies should be "on a
fact, could short-circuit calls that have been put forth by France
broader, more intrusive and radical basis" than Ike's, the U.S.
and Canada for an international satellite monitoring agency that
plan would initially embrace all 23 of the NATO and Warsaw
would be neither cheap nor easy to implement.
Pact nations.) Next February, the NATO and Warsaw Pact
"You can do wonderful things with surveillance aircraft and
countries plan to meet in Ottawa-Canada has been a prime
[unclassified] exportable sensors," Stimson Center president Mi-
proponent of Open Skies-to begin hammering out the specifics.
chael Krepon said in an interview. "I really see it as a low-cost,
Even as "military transparency" and on-site inspection gain
short-term, feasible alternative to international satellite monitor-
growing acceptance, many issues must be settled before the skies
ing," he added. "You could use Gulfstream aircraft, for crying
can open. The Soviets, for instance, want to create an interna-
out loud. You could use used cameras. And there's no tech
tional agency that would use a common pool of aircraft and
transfer problem, if you use the right equipment." Recalling the
sensors. Arguing that international red tape would only hamper
flap early this year over a suspect chemical weapons plant built
the project, the United States rejects this approach. (Not irrele-
in Libya with West German assistance, Krepon noted that "a
vantly, perhaps, the United States also boasts the best surveil-
fuzzy three-meter photo created real embarrassment for Ger-
lance gear.) Smaller nations might still want to band together to
many and Libya."
3020 NATIONAL JOURNAL 12/9/89
BUDGET FOCUS/LAWRENCE J. HAAS
N
OW that Mikhail S. Gorbachev's attempt to bring the Soviet
mated would bring in $81.3 billion in savings over the next five
Union into the 20th century has prompted a revolution
years. Questioned by correspondent Judy Woodruff, he said:
throughout Eastern Europe, might we ask for some glasnost
"Well, obviously we can always do more. I wouldn't say this was
from our own leaders on the budget issue?
a perfect result, but it's-compared to other years, I think it's
We may not have "newspeak," that standardized truth that
one of the strongest, if not the strongest, performances."
George Orwell warned about in his classic 1984. Rather, we have
Never mind that little 1982 Tax Equity and Fiscal Respon-
"budgetspeak"-less formalized, but no less insidious. Up can be
sibility Act, which, by itself, was projected to raise nearly $100
down, and down can be up. All it takes is a little common
billion in taxes over just three years. You know, the one that
understanding from the White House and Congress, Democrats
Dole, as Senate Finance Committee chairman, was so instru-
and Republicans alike, to make it so.
mental in bringing about. And never mind the 1982 reconcilia-
Some critics theorize about a grand conspiracy on the part of
tion bill, which was projected to cut $13 billion in spending over
America's leaders to play down the budget deficit, to avoid the
three years. Together, that's $113 billion in deficit reductions
issue in any significant sense by
over three years, compared with
proclaiming that they are mak-
ing much more progress than
Budgetspeak
$81.3 billion over five years in
this year's package.
they are.
And while we're praising this
Whatever the leaders' mo-
fall's fiscal 1990 pact as "one of
tives, budgetspeak is at least
the strongest, if not the stron-
convenient. It enables the lead-
THE UNITED STATES OF AMNESIA
gest," you'd better ignore that
ers to sidestep the very tough
three-year, $63 billion reconcili-
issues-some of which they
THIS NOTE IGNORES ALL
DEBTS, PUBLIC AND PRIVATE
ation bill, most of it in tax in-
have confronted unsuccessfully
WASHINGTON,
P.C.
creases, that Washington en-
in the past-upon which any
acted in 1984. If everybody says
significant deficit cutting deal
PENNY
A PENNY
this year's was the best, it must
would depend.
MAIL
After all, if Washington is
LURIBUS
SECURITY
be. Who cares about history,
LEVERAGED
anyway?
making progress, the deficit is
Gee Bush
*LET OUR KIDS
How well did Washington do
coming down and the executive
FOOT THE BILL
this fall? Well, our leaders say,
and legislative branches are
DON'T WORRY, BE HAPPY
they cut the deficit by $17.8 bil-
working together, who's to say
lion for 1990.
that anyone needs to do more?
But, when you ignore a few
Whether any of those assump-
one-shot savings that, they
tions are correct, however, is another matter.
agree, should not be counted, they actually cut the deficit by only
Did President Bush agree to a tax increase? No, everybody
$14.7 billion.
says, he did not. The White House and congressional Republi-
Of course, in that $14.7 billion are a few other one-shot sav-
cans, of course, would never admit to such an assertion. To do so
ings, or just plain gimmicks. They claimed $1.7 billion in "sav-
would prove that Bush did what he said he would never do. And
ings" from taking the U.S. Postal Service "off-budget," although
because he would never do that, they say, he did not. Got that?
such a maneuver doesn't really save any money. And they
Nor are the Democrats inclined to embarrass a nice guy like
claimed $700 million more by forcing federal retirees to take
Bush. So, they say, he didn't raise taxes.
their retirement benefits over two years, not all at once. No real
Never mind April's budget pact between Bush and congres-
savings there.
sional leaders, in which the two sides agreed to raise $5.3 billion
But in April, the White House and Congress had agreed to
in taxes. Taxes, it seems, are not taxes. Got that? And never mind
those maneuvers. And so, they included them as part of the
the $6.1 billion in tax increases that were actually enacted for
$14.7 billion. Some gimmicks are good, and some are bad, it
1990, through various tax changes that were just approved.
seems, depending on when policy makers conspired to rely on
Never mind that for those who will pay more-in taxes, that is-
them. Or, as Orwell might have put it, "All gimmicks are equal,
the changes sure feel like a tax increase. No, the President did
but some are more equal than others."
not raise taxes-because he says he didn't. And if you need more
To reach that $14.7 billion, policy makers also imposed 130
proof, everybody else says so, too. So there!
days of across-the-board spending cuts, calculated to save $4.6
Did Washington do a good job in cutting the deficit this year?
billion next year.
It sure did. Ask the congressional leaders. "Well, I think so,"
Remember those across-the-board cuts? They represented a
Senate Minority Leader Robert Dole, R-Kan., said on Nov. 22
wholly unthinkable gun that Congress held to its own head in
when asked on the MacNeil/Lehrer NewsHour whether the first
1985. Those cuts weren't ever supposed to take effect. Instead,
session of the 101st Congress had been "productive on the bud-
with the threat facing them, policy makers were supposed to
get deficit."
adopt a more rational deficit cutting approach to meet annual
Dole said that Richard G. Darman, the Administration's bud-
deficit targets.
get director, "said it's the best budget agreement we've had in
Now, it seems, those cuts were not so unthinkable after all.
years,
so it's-you know, it wasn't good when we started, but
Now, if Washington comes up short in meeting whatever deficit
I think we end up with a pretty good product." Well, if Darman
cutting target it imposed on itself, the nation's leaders may be
said so, it must be true. Is everybody on board?
inclined to employ those cuts to finish the job.
Also appearing on that show, House Speaker Thomas S. Fo-
In the world of budgetspeak, the unthinkable can become the
ley, D-Wash., wasn't about to disparage this fall's deficit cutting
thinkable overnight. Or, up can be down. All it takes is a little
"reconciliation" bill, which the House Budget Committee esti-
common understanding.
NATIONAL JOURNAL 12/9/89 3021
LEGAL FOCUS/W. JOHN MOORE
P
ity Hamilton Burger. The long-suffering foil to unbeatable
formation in any criminal case and back up the request with a
criminal defense lawyer Perry Mason, prosecutor Burger
grand jury subpoena.
suffered ignominious defeat after defeat, extending his record-
Some of the defense lawyers' complaints can be dismissed as
setting courtroom losing streak before a nationwide television
gripes from attorneys doing a thriving business representing the
audience.
most despicable defendants. But defense counsel dispute a stat-
It turns out that the fictional Burger was a victim of bad
ute that forces them into the role of stool pigeon.
timing. The Eighties has proved to be the decade of the prosecu-
Federal prosecutors obviously feel differently, arguing that the
tor. Federal crime-busters such as Joseph E. diGenova in Wash-
fruits of crime should not be used to pay for expert legal advice.
ington, Rudolph W. Giuliani in New York, "Mad Dog" Robert
It's "the same as a bank robber going to a lawyer with money he
W. Merkle in Tampa and Anton R. Valukas in Chicago became
just stole from a bank," Kenneth Magidson, head of the Gulf
superstars. They were treated as hometown heroes and cheered
Coast Drug Task Force in Houston, told the Chicago Tribune
by the national news media (even though Giuliani lost his cam-
recently. "An attorney's no special person."
paign for mayor).
But as government watches
In a time of scoundrels, the
Prosecutor Power
the lawyers, who is watching
U.S. Attorneys waged a coun-
government? The Wall Street
terattack on corruption. Cor-
Journal's editorial page has cru-
rupt judges in Chicago, cocaine
saded against the feds' use of the
kingpins in Miami, thieves on
1970 Racketeer Influenced and
Wall Street and crooked bank-
Corrupt Organizations (RICO)
ers all over were foiled by dedi-
Act. Much of the newspaper's
cated federal crime fighters. At
criticism focused on the weap-
times, it seemed the only known
ons prosecutors could wield
antidote for the epidemic of
even before trial, especially the
white-collar crime was a power-
forfeiture of assets allegedly
ful dose of prosecutorial virtue.
gained through criminal ac-
"The function of the prosecu-
tions. (See NJ, 3/11/89, p. 572.)
tor is to ultimately make all men
angels and then go out of busi-
Richard A. Bloom
Now, in a decision almost
universally regarded as harsh
ness," Otto Obermaier, the new
criticism of government pros-
U.S. Attorney for the Southern
ecutors, a federal judge in New
District of New York, summed
Federal prosecutors at the Justice Department
Jersey has merely slapped the
up in the November issue of the
wrists of executives with a New
American Bar Association's ABA Journal.
Jersey securities firm that was forced out of business by the feds
In pursuit of this lofty goal, federal prosecutors have relied on
in a RICO case.
tough-guy tactics sanctioned by Congress and public opinion.
There are other hints that times may be changing. Prosecutors
And the lawmen certainly can employ heavy artillery in their
could lose one of their biggest advantages if a decision by Judge
war on crime. Congress has supported federal prosecutors with
Harold H. Greene of the U.S. District Court for the District of
more firepower in virtually every antidrug bill and criminal
Columbia is upheld by appellate courts. In a decision last month,
justice legislation enacted in the 1980s.
Greene found new criminal sentencing guidelines unconstitu-
Given these weapons, federal enforcers hardly hesitate to use
tional on the ground that they violated a defendant's right to due
them. Look at a recent ruling by the Internal Revenue Service
process.
(IRS) requiring criminal defense lawyers to identify clients and
More important, Greene's decision raised a troubling question
provide detailed client information regarding fees and methods
about prosecutorial discretion in criminal cases. Under the
of payment. Failure to furnish this information can lead to both
guidelines, which restrict judicial discretion, mandatory mini-
civil and criminal penalties, but many defense attorneys have
mum penalties are imposed for various crimes. The guidelines
refused to submit it, citing their clients' constitutional rights.
really give prosecutors the upper hand by determining punish-
"Unquestionably, these latest actions by the IRS present a
ment at the same time charges are filed. The prosecutors call the
serious threat to the criminal defense bar and attorney-client
shots by deciding what charges to file, and judges have almost no
relationship," the National Association of Criminal Defense
authority even to tinker with sentences.
Lawyers (NACDL) warned in a Nov. 14 letter to its members.
"The sentencing statute has largely replaced the traditional
The IRS effort "presents a serious challenge to the adversary
role of judges in the critical sentencing phase of the criminal
system of justice, and places honest, ethical lawyers in a serious
process by vesting most sentencing decisions in prosecutors,"
dilemma," the letter concluded.
Greene's Nov. 16 opinion said. The sentencing guidelines, he
Since the Supreme Court in June ruled in favor of the govern-
added, "have thus effected what may be the most fundamental
ment, federal prosecutors have wasted little time in demanding
change in the criminal justice system to have occurred within the
fee information from defense lawyers, including such luminaries
past generation."
of the bar as F. Lee Bailey.
For defense lawyers, Greene's decision hints that some judges
So far, the Justice Department and its U.S. Attorneys have
may be wary of the extraordinary power that gradually accrued
been careful to seek forfeiture of legal fees only in drug cases,
to prosecutors. "It is an encouraging development," said H.
knowing there is public support in these instances. Before
Scott Wallace, NACDL's legislative director. After years of
Valukas quit his post in Chicago, he assured local defense attor-
smashing victories, prosecutors might be facing some defeats. In
neys that forfeiture would not be sought in commodities fraud
the end, that might herald a more level playing field for prosecu-
cases. But there is no reason prosecutors can't demand fee in-
tors and defendants.
3022 NATIONAL JOURNAL 12/9/89
Capitol Steps-2977
Environmental Defense Fund-2990
Carnegie Endowment for Intl. Peace-3006
Environmental Protection Agency-2991, 3018
Carter, Jimmy-3004
Environmental Quality Council-3018
Weekly Index
Center for Participation in Democracy-2983
Erlenborn, John N.-3012 (p)
Center for Responsive Politics-2987, 3019
External Affairs Department (Canada)-3020
(p) indicates a reference in the People section
Center for Strategic and Intl. Studies-3003, 3006,
Exxon Corp.-3008
Adams, Brock-3014 (p)
3014 (p)
Falwell, Jerry-2984
Administration Committee, House-2983
Central Intelligence Agency-3006
Federal Election Commission-2982, 2986
Agriculture, Nutrition and Forestry Committee, Sen-
Channell, Carl (Spitz)-2981
Federal Home Loan Bank Board-3012 (p)
ate-3012 (p)
Chemical Manufacturers Assn.-2989
Federal Housing Administration-2994
American Assn. of Retired Persons-2977, 3013 (p)
Chemical Waste Management of Oak Brook-2991
Federal Reserve System
American Bar Assn.-3022
Cheney, Dick-3008, 3018
Board of Governors-3000
ABA Journal-3022
Chicago Council on Foreign Relations-3026
Finance Committee, Senate-3021
American Civil Liberties Union-2984
Chicago Tribune Co.
Fitts, C. Austin-2997
American Enterprise Institute for Public Policy Re-
Chicago Tribune-3022
Fitts and Blackwell-2997
search-2977
Chiles, Lawton-3018
Fitzwater, Marlin-3008
American Horizions-2985
Christian Broadcasting Network-2985
Foley, Thomas S.-3021
American Opportunity Foundation-2984
Christian Coalition-2985
Foreign Relations Committee, Senate-3012 (p),
American Petroleum Institute-3013 (p)
Citizens Action-2987
3017
American University
Citizens Clearinghouse for Hazardous Waste-2990-
Fray, Carolyn-3013 (p)
Public Affairs School-2993
92
Freedom Council-2985
Public Information Office-3013 (p)
Clean Air Act (1970)-2989, 2991
Freer, Robert E., Jr.-2980, 2986
Washington School of Law-2990, 2993, 3013 (p)
Clean Water Action Project-2990
Frenzel, Bill-3001
Americans Talk Security-3026
Cohen, Sheldon S.-2981, 2984
Friedkin Industries Inc.-3013 (p)
Anderson, Frederick R.-2990, 2993
Colgrove, Ann A.-3014
Friedkin, Monte-3013 (p)
Anthony, Beryl F., Jr.-2977, 2986
Collender, Stanley E.-3002
Fund for an American Renaissance-2985
Appropriations Committee, House-3013 (p)
Columbia Broadcasting Inc.
Gallup Organization Inc.-3015
Aquino, Corazon C.-3019
CBS News-3026
Gannett Co.
Arbatov, Georgi-3003
Commerce Department
USA Today-3015, 3026
Armed Services Committee, House-2987
Census Bureau-3016
Gans, Curtis B.-2983
Arms Control Assn.-3003
Commercial Programs-Domestic and Intl.3014 (p)
Garn Institute-2987
Aspin, Les-2987
Committee for the Study of the American Electorate
General Accounting Office-3001-02, 3018-19
Babbitt, Bruce E.-2985
-2983
General Agreement on Tariffs and Trade-3003
Bailey, F. Lee-3022
Committee for Economic Development-3001
General Dynamics Corp.-3013 (p)
Baker and Hostetler-2984
Comprehensive Environmental Responsive Response
Gephardt, Richard A.-2977
Baker, Howard H., Jr.-3013 (p)
Compensation and Liability Act (1980)-2992
Gerasimov, Gannadi I.-3008
Baker, James A., III-3003, 3008
Congressional Budget Office-3001, 3018
Gersh, Mark H.-2986
Baker, Worthington, Crossley, Stansberry & Woolf
Continental Health Affilites Inc.-3017
Gibbs, Lois M.-2990-92
-3013 (p)
Cooper, Davis, Eaglin and DeSilva-3012 (p)
Gingrich, Newt-2984, 3000-01
Bakker, Jim-2984
Corr, William V.-3013 (p)
Ginsberg, Benjamin-2986
Balanced Budget Act (1985)-3000, 3018
Council on Foreign Relations-3006, 3008, 3026
Giuliani, Rudolph W.-3022
Banking, Housing and Urban Affairs Committee,
Cranston, Alan-2980-81, 2983, 2997
Goldschmidt, Neil E.-3004-05
Senate-2995, 3012 (p)
Cranston, Kim-2983
Gorbachev, Mikhail S.-3003, 3006, 3008-09, 3011,
Housing and Urban Affairs Subcommittee-2995
D'Amato, Alfonse M.-2997
3015, 3020-21, 3026
Bell, Boyd & Lloyd-3013 (p)
Dachi, Stephen F.-3014 (p)
Gordon, Ben-2990, 2992
Benavidez, Hortencia-3012 (p)
Darman, Richard G.-3002, 3018, 3021
Gore, Albert, Jr.-3005
Bennett, William J.-3013 (p)
Defense Department-3003, 3008, 3017
Gossens, Peter J.-3013 (p)
Bentsen, Lloyd-3014 (p)
Air Force-3018
Goulding, Phil G.-3013 (p)
Biden, Joseph R., Jr.-3019
Commission on Base Closure and Realignment
Govenment-University-Industry Research Round-
Black, Gordon S., Corp.-3015
-3018
table-3017
Blackwell, J. Kenneth-2997
Defense Logistics Agency-2987
Gradison, Willis D.-2999
Blackwell, James A., Jr. III-3003
Navy Department-3008, 3013 (p)
Gramm, Phil-2999-3000
Bonior, David E.-2982
U.S. Coast Guard-3006
Gray, Kimi-2996
Bork, Robert H.-2984
DelliBovi, Alfred A.-2996-97
Greene, Harold H.-3022
Boster, Ronald S.-2999
Democratic Congressional Campaign Committee
Greenpeace Intl.-2990, 2992
Boyer, Francis-2977
-2977, 2986
Greenpeace Action-2990, 2992
Bradley, Bill-3005
Democratic Natl. Committee-2980, 3013 (p)
Greenspan, Alan-3000
Brandeis, Louis D.-2991-92
DeMuth, Christopher-2977
Greenways for America-3007
Brennan, Geoffrey-3017
DeRocco, Emily-3013 (p)
Guarini, Frank J.-2999
Brinkley, David-3009
Dickens, Charles-2998
Gulf Coast Drug Task Force-3022
Brookings Institution-3001, 3009
Dickenson, William L.-2987
Guttman, Robert M.-3014 (p)
Brown, Frederick Z-3017
diGenova, Joseph E.-3022
Hall, J. Blakely-3012 (p)
Brown, Jane Scott-2987
Dillon, Read & Co. Inc.-2997
Hall, Ralph M.-3012 (p)
Brown, Ronald H.-2980
Dobrynin, Anatoly-3020
Hamilton, William W., Jr.-2982
Bruner Foundation-3007
Dole Foundation-2987
Hancock, Mel-2987
Bruno, Hal-3008
Dole, Robert-2985, 2987, 3021
Hargis, Billy James-2984
Buckley, William P.-2989
Dole, Gregory S.-3014
Harkin, Tom-2982, 3014 (p)
Budget Committee, House-2999-3001-02, 3014 (p),
Donnelly, R.R.-2986
Hart, Gary-2985
3021
Dorn, Jenna-3014 (p)
Hay, Keith-3007
Bush, President
Dornan, Robert K.-2982
Health and Human Services Department
Bush-Gorbachev Malta summit, importance of
Dow Jones & Co., Inc.
Social Security Administration-3002
-3003
The Wall Street Jounral-2997, 3022
Helms, Jesse A.-3012 (p)
community recreation, plant movement toward
Doyle, Richard-3014(p)
Heinz, John-2999-3000
-3007
Dukakis, Michael S.-2983, 3004, 3014 (p)
Heritage Foundation-2984, 3008
Dimitri K. Simes, profile of-3006
Duke University-2984
Heron, Burchette, Ruckert & Rothwell-3013 (p)
Eisenhower's "open skies" idea, revival of-3020
Durant & Durant-3012 (p)
Hess, Stephen-3009
Jack F. Kemp's HUD plans-2994-95, 2998
Durant, W. Clark., III-3012 (p)
Hind, Rick-2993
Oregon Gov. Neil Goldschmidt, interview with
Eaglin, Paul B.-3012 (p)
Hofeller, Thomas B.-2980
-3004-05
Eastman Kodak Co.-2989
Hollings, Ernest F.-2999-3000
social security surpluses, impact of budget deficit
Eckert Seamans Cherin & Mellott-3002
Holyater, William J.-3019
-2999
Economic Policy Institute-2997
Homeownership and Opportunity for People Every-
state environmental activism, industies' worry over
Education Department-3014 (p)
where (HOPE)-2994-96
-2989, 2991, 2993
Eisenhower, Dwight D.-3020
Hopkins, Bruce R.-2984
U.S.-Soviet relations, Bush's cautiousness toward
Energy and Commerce Committee, House-2993,
Horn, Robert J.-2986
-3011
3013 (p), 3018
Housing and Urban Development Department
U.S.-Soviet summit, diplomatic skills of-3008-09
Health & Environment Subcommittee-2989,
-2994-98
C-SPAN-2977
3018
Humbert, Thomas M.-2995-98
Campbell, W. Donald-2995-98
Energy and Environmental Protection Committee,
Hume, Brit-3009
Capital Cities
House (Iowa)-2992
Hunt, Guy-2991
ABC News-3008, 3015
Enterprise Foundation-2995
Hurwitz, Geoffrey-2989-90, 2992-93
NATIONAL JOURNAL 12/9/89 3023
Hutter, Jean-3013 (p)
Natl. Broadcasting Co. Inc.
Sasser, Jim-2999
Interstate Conference of Employment Security Agen-
NBC News-3006
Sawhill, Isabel V.-3002
cies Inc.-3013 (p)
Natl. Center for Policy Alternatives-2992
Scalia, Antonin-2977
Intera Technology Ltd.-3020
Natl. Commission to Prevent Infant Mortality-3018
Schultz, William B.-3014 (p)
Interior Department-3007, 3013 (p), 3018
Natl. Committee for an Effective Congress-2986
Seyfarth, Shaw, Fairweather & Geraldson-3012 (p)
Land and Water Conservation Fund-3007
Natl. Conference of State Legislatures-2986, 2992
Shane, Jeffrey-3013 (p)
Intl. Assn. of Machinists and Aerospace Workers
Natl. Congress for Community Economic Develop-
Sierra Club-2990-93
-3019
ment-2998
Simes, Dimitri K.-3006
Intl. Institute for Strategic Studies-3017
Natl. Economic Commission-3001-02
Simon, Paul-2985
Jackson, Jesse-2985
Natl. Endowment for the Arts-3014 (p)
Skinner, Samuel K.-3019
Johnson, Lyndon B:-2995, 3016
Natl. Football League-2996
Slattery, Jim-3002
Jones, Day, Reavis & Pogue-3014 (p)
Natl. Governors' Assn.-2993
Smegal, Thomas F.-3012 (p)
Jones, Jim-2993
Natl. Housing Conference-3013 (p)
Social Security and Natl. Savings-3001
Judiciary Committee, House—2981
Natl. Legislative Educational Foundation-2984
Spurrier, Earl C.-2992-93
Judiciary Committee, Senate-3013 (p), 3019
Natl. Low Income Housing Coalition-2995
Standard Oil Co.-3008
Antitrust, Monopolies and Business Rights Sub-
Natl. Neighboodhood Coalition-2997
Stanford University
committee-3013 (p)
Natl. Republican Congressional Committee-2980
Hoover Institute on War, Revolution and Peace
Justice Department-2984, 2986, 3022
Natl. Republican Senatorial Committee-2986
-2997
Federal Bureau of Investigation-2983
Natl. Research Council-3017
Stangeland, Arlan-2982
Kanitz, Bud-2997
Natl. Solid Wastes Management Assn.-2991, 2993
State Department-3008, 3014 (p), 3017, 3020
Kasich, John R.-3000-02
Natl. Toxics Campaign-2990
Economic and Business Affairs Bureau-3013 (p)
Kasten, Robert W.-2987
Natural Resources Defense Council Inc.-2990,
Staub, H. Gerald-3013 (p)
Keating, Charles H., Jr.-2981-83, 2987
3014 (p)
Stavins, Robert N.-2993
Kemp, Jack F.-2985, 2994-98
The New Republic-2997
Stockmeyer, Steven F.-2987
Kerwin, Cornelius M.-2993
The New York Times Co.
Sununu, John H.-3009
Khrushchev, Nikita S.-3020
The New York Times-2983, 3006, 3009, 3026
Supreme Court-2977, 2994, 2991-92
King, Martin Luther, Jr.-2996, 2998
Newman, Sandy-2983
Sutton, Willie-2981
Kirk, Paul G. Jr.-3014 (p)
Nicklas, Bob-2982
Svec, Milan-3006
Klieman, Aaron S.-3017
Nitze, Paul H.-3017
Swafford, Claude G.-3012 (p)
Kondratas, S. Ann-2995, 2997
Nixon, Richard M.-2981
Swaggart, Jimmy-2984
Krepon, Michael-3020
North Atlantic Treaty Organization-3008-09, 3015,
Swillinger, Dan-2984, 2986
Kristol, William-3013 (p)
3020
Tauke, Thomas J.-2982
Labor and Human Resources Committee, Senate
Nunn, Sam-3019
Tax Equity and Fiscal Responsibility Act (1982)
Labor Subcommittee-3013 (p)
O'Connor & Hannan-3012 (p)
-3021
Labor Department-3014
Obermaier, Otto-3022
Tax Reform Act (1986)-2981
Lawyers for Reagan-Bush-2986
Oberstar, James L.-2982
Tel Aviv University-3017
Lawyers for the Republic Inc.-2980, 2986
Operation PUSH-2985
Texas A&M University-3003, 3009, 3020
League of Conservation Voters-2985
Orwell, George-3021
Henry L. Stinson Center-3020
Legal Services Corp.-3012 (p)
Owens, Marcus S.-2981
Texas Air Corp.
Legislative Studies Institute-2987
PACs & Lobbies-2983
Eastern Airlines Inc.-3019
Lieberman, Joseph I.-2991
Parks, Rosa-2996
Thomas, William M.-2986
Liebman, Morris I.-2986
Partnership for Democracy-2982
Thompson, Kenneth-3014 (p)
Lincoln Savings & Loan (Irvin, Ca.)-3013 (p)
Patterson, Belknap, Webb & Tyler-2986
Times Mirror Co.
Lincoln, Abraham-2998
Pauley, Ann-3013 (p)
Los Angeles Times-3006
Liner, Blaine-2991, 2993
Peace Media Project-2982
Tracey, Jeffrey P.-3020
Local Initiatives Support Corp.-2996, 2998
Pelosi, Nancy-3019
Transportation Department-3014 (p), 3019
Lomasky, Loren E.-3017
Penner, Rudolph G.-3001-02
Federal Aviation Administration-3013 (p)
Lugar, Richard G.-3012 (p)
Penny, Timothy J.-2982
U.S. Coast Guard-3003
Lujan, Manuel, Jr.-3018
Pergamon-Bassey Intl. Defense Publishers Inc.
Treasury Department-2981, 2994-95, 2999, 3001,
Lusk, Anne-3007
-3017
3012-13
Luttwak, Edward N.-3006
Phelps, Dunbar, Marks, Claverie & Sims-3012 (p)
Internal Revenue Service-2981-87, 3022
Lynch, Patricia Gates-3014 (p)
Pickle, J.J.-2981, 2984
Thrift Supervision Office-3012 (p)
Mackaronis, Christopher G.-3013 (p)
Pierce, Samuel R., Jr.-2997-98
Tryens, Jeffrey-2992
Maddy, Jim-2985
Pirchner, Herman-2987
Tucker, William-2997
Magidson, Kenneth-3022
Planned Parenthood Federation of America Inc.
Uddo, Basile J.-3012 (p)
Makris, Anthony S.-2987
-2982
U.S. District Court for the District of Columbia
Management and Budget Office-2995, 3001-02,
Political Resources Inc.-3017
-3022
3018
Pope, Carl-2991-93
U.S. District Court for the Southern District of New
Mandelbaum, Michael-3006, 3008
Praeger, Richard Q., Jr.-3013 (p)
York-3022
Matalin, Mary-2986
President's Commission on Americans Outdoors
U.S. District Court for the Northern District of Ala-
Mathiasen, David G.-3001
-3007
bama-2991
Maupin Taylor Ellis & Adams P.C.-3012 (p)
Price Waterhouse-3002
U.S. Institute of Peace (Washington)-3006
McDonnell Douglas Corp.-3014 (p)
Project Vote-2983
U.S. Postal Service-3016, 3021
McKinney, Pam-3014(p)
Public Citizen Litigation Group-3013 (p)
U.S. Public Interest Research Group-2993
McNamara, Robert S.-3009
Public Interest Research Groups-2990-92
Urban Institute-2991, 2993, 2995, 3001-02
Mendez, Pepe J.-3012 (p)
Quayle Quarterly-2977
Valois, Robert A.-3012 (p)
Merkle, Robert W.-3022
Quayle, Dan-2977, 3009, 3013 (p)
Valukas, Anton R.-3022
Miller, Ellen S.-2987, 3019
Quealy, Patricia A.-3002
Ventrell-Monsees, Cathy-3013 (p)
Miller, Lorain-3012 (p)
Racketeer Influenced and Corrupt Organizations Act
Voice of America-3014 (p)
Mitchell, George J.-2999
(1970)-3022
Voles, Lorraine A.-3014 (p)
Mondale, Walter F.-2982-83
Radio Free Europe and Radio Liberty-3013 (p)
Waddell, Gregg W.-2984
Moore, Allen-2991, 2993
Raiser, C. Victor., II-3013 (p)
Wall, M. Danny-3012 (p)
Morandi, Larry-2992-93
Rangel, Charles B.-3019
Wallace, H. Scott-3022
Morgan, Lewis and Bockius-2981
Reagan, Ronald-2982, 2986, 2989, 2991, 2994-98,
Wallace, Michael B.-3012 (p)
Mothers and Others for Pesticide Limits-3014 (p)
2999, 3004, 3011, 3016
Washington Communications Group-3017
Moynihan, Daniel Patrick-2999, 3001-02
Reischauer, Robert D.-3001
The Washington Post Co.
Murdock, J.E. (Sandy), III-3013 (p)
Republican Natl. Committee-2980, 2986
The Washington Post-2987, 3000, 3006, 3015 (p)
Murphine & Walsh-2989
Republican Natl. Lawyers Assn.-2986
Waxman, Henry A.-2989, 3004-05, 3018
Murphine, Ralph D.-2989
Resolution Trust Corp.-3013 (p)
Ways and Means Committee, House-2984
Murphy, Terry-2977
Rivlin, Alice M.-3001
Oversight Subcommittee-2981, 2984
Myers, Robert J.-3002
Roberts, Benson F.-2996, 2998
Wear, Terrance J.-3012 (p)
NAACP-2986
Robertson, Marion G., (Pat)-2981, 2984-85
Weber, Vin-2982
Nader, Ralph-3014 (p)
Rohm and Haas Co.-2989, 2992
Werksman, Deborah-2977
Narcotics Abuse and Control Select Committee,
Rosen, Jack-3017
Wiese, Arthur E.-3013 (p)
House-3019
Rosenberg, Ralph-2992
Women's Legal Defense Fund-3013 (p)
Natl. Agricultural Chemicals Assn.-2992
Rouse, James W.-2995, 2998
Woodruff, Judy-3021
Natl. Assn. of Attorneys General-2993
Rubin, James P.-3003
Wyden, Ron-3005
Natl. Assn. of Business PACs-2987
Ryan, C. William-2990-92
Youth Project-2982
Natl. Assn. of Criminal Defense Lawyers-3022
Sanford, Terry-2999
Zigas, Barry-2995
Natl. Assn. of Regional Councils-3013 (p)
Sassaman, Virginia-3013 (p)
Zuckerman, Ed-2983
3024 NATIONAL JOURNAL 12/9/89
Recent Articles
Articles appearing in National Journal during the six weeks from Oct. 21 to Dec. 2 are listed below.
Page numbers of major articles are in boldface; page numbers of focuses and updates are in lightface.
BUDGET
HEALTH
budget deficit, impact on economy leadership role
11/11-2786
health problems, commissions' proposals on
10/28-2634
budget process reform, continuing efforts on
11/18-2830
Oregon medicaid experiment, skepticism over
11/11-2766
budget reconciliation bill, outlook for
12/ 2-2947
IMMIGRATION
debt-management process, Brady's manipulation of
11/ 4-2724
immigration advocate Rick Swartz, profile of
10/21-2591
fiscal 1990 budget, departments' plans for
11/ 4-2697
states' high cost for resettling refugees
11/ 4-2723
COMMUNICATIONS
INTERGOVERNMENTAL AFFAIRS
AM radio broadcasters' plight, FCC response to
10/21-2584
billboards fight on health and tax issues, impact on
11/25-2897
Bell telephone plans for offering information services
10/28-2664
Dukakis's environmental strike force, praise of
10/28-2648
CONGRESS
N.C. antipoverty strategy, success of
11/11-2774
abortion-rights group's hit list, impact of
10/21-2607
LEGAL AFFAIRS
Bush-Dole rivalry, GOP's impact on
11/11-2775
constitutional rights for children, Court case on
10/21-2608
Bush's staff appts., concern over
12/ 2-2952
Congress's failure to enact a child care bill, impact of
corporate wrongdoers, stiff punishments' for
11/ 4-2707
11/25-2899
10/21-2589
drug dealers' money laundering, banks' role in
12/ 2-2924
Cranston's preoccupation with campaign funds
drug war strategy, criticism of
11/ 4-2692
Democrats' legislative success, overconfidence on
10/28-2652
ex-Justice aides conservative policies, fight for
12/ 2-2950
deregulation's impact on Administration, outlook for
12/ 2-2965
executive vs. legislative branch, power struggle between
11/18-2816
personal injury cases, companies' right to secrecy in
11/25-2909
House committee chairman, loss of support
privacy rights, Supreme Court rulings on
10/14-2514
12/ 2-2931
medicaid funds for abortions, tough choice on
10/21-2592
POLITICS
Rep. Ravenel's attempted party switch
11/18-2842
abortion and negative ads, Democrats' advantage on
11/18-2862
tax breaks for members of tax-writing committees
10/28-2646
abortion-rights advocates, success in 1989 campaign
11/11-2776
DEFENSE
abortion-rights movement, momentum for
11/ 4-2730
arms treaty compliance, foreign verification of
10/21-2580
Bradley's 1992 presidential bid, strong probability of
10/21-2574
Derek J. Vander Schaaf, profile of
11/ 4-2708
budget deficit reduction, strategies of
10/21-2612
gays in the military, Pentagon's policy on
11/11-2785
Bush's caution toward Eastern Europe policy
11/25-2914
Hackworth's book "About Face," response to
11/25-2910
Bush's cautious approach to foreign affairs, outlook on
11/11-2790
Pentagon's power, efforts to control
11/18-2820
conservative natl. security groups, outlook for
11/11-2746
Pentagon's systems analysts, key role of
11/11-2740
Dinkins's dwindling lead in New York, reasons for
10/28-2653
tank modernization, Army-Congress battle over
10/14-2533
direct-mail advertising, increasing use of
11/25-2881
exit polls, usefulness of
12/ 2-2970
DEMOGRAPHICS
GOP abortion stance, governors' criticism of
11/18-2844
1990 census projections, problems encountered in
11/11-2765
N.J. governor's race, Courter's main issues in
10/21-2597
ECONOMY
New Jersey legislature, Democrats' capture of
11/11-2759
Asian-U.S. economic links, concern over.
10/28-2624
pollster J. Bradford Coker, profile of
11/25-2896
Federal Reserve's retaining its prestige, outlook on
11/25-2893
twenty year retrospective
11/18-2804
Japan's global leadership role, analysis of
10/21-2568
Va.'s governor race, Coleman's negative campaign in
11/ 4-2712
EMPLOYMENT AND LABOR
PRESIDENCY
OSHA's signs of turnabout
11/25-2889
Bush-Gorbachev Maltese summit, outlook on
11/11-2770
pension plans corruption, Labor's warning on
10/28-2630
Bush's decision making, future impact on
10/21-2594
rail workers injury compensation, labor fight over
11/25-2895
Bush's party leader role, effectiveness of
10/28-2650
social security long-term solutions, outlook for
11/18-2824
Bush's promise of cooperation with Congress, failure of 11/18-2840
social security's Martha A. McSteen, profile of
10/28-2655
PRESS
ENERGY AND ENVIRONMENT
NPR's Adam Clayton Powell III, profile of
12/ 2-2951
clean air legislation, delay on
11/18-2832
U.S. journalists reporting fairly, examination of
11/25-2908
global warming, environmentalists' concern over
11/11-2750
RACE RELATIONS
NRDC's David D. Doniger, profile of
11/18-2839
black-white deep rifts, persistence of
11/11-2785
nuclear activist Scott Denman, profile of
11/11-2768
oil spill clean-up, industry's payments on
11/ 4-2706
SCIENCE AND TECHNOLOGY
Reps. McCollum and Sabo's assessment of session
12/ 2-2948
NASA's search for life on other planets
11/18-2833
FINANCIAL INSTITUTIONS
technology's solving major problems, success of
11/18-2818
low-income lending, federal enforcement of
10/28-2639
TAXATION
S&L scandal, impact on five Senators
12/ 2-2955
Darman's optimism on capital gains tax cut
10/21-2588
FOREIGN POLICY
tax give-backs to the affluent, Congress's strategy on
10/21-2606
Tax Reform Act, challenges to
11/ 4-2682
Bush's approach toward Noreiga, concern over
10/28-2665
East and West Germany reunification, outlook on
11/ 4-2705
TRADE
Eastern European changes, Democrats' advantage in
11/25-2900
Japanese car import limits, risks on
11/18-2826
East Germany's changes, effect on intl. relations
11/25-2872
transnational corporations' conflict on trade policy
11/11-2754
East Germany's changes, effect on national security
11/25-2873
U.S.-Japan structural trade impediments, outlook on
10/28-2644
United Nations role, new attitude toward
11/ 4-2687
WELFARE
U.S.-Panama relations, Noreiga's impact on
12/ 2-2937
welfare reform law, disputes over success of
12/ 2-2942
NATIONAL JOURNAL 12/9/89 3025
POLITICAL PULSE/WILLIAM SCHNEIDER
Skepticism About Internationalism
"Many things that were characteristic of the Cold War
cans endorsed the view that "Communism is dying." But 55
should be abandoned," President Mikhail S. Gorbachev de-
per cent preferred the formulation "Communism is being
clared at the conclusion of the Malta summit meeting with
reshaped to be more open." The third option, that Commu-
President Bush. What he had in mind, the Soviet leader
nist hard-liners are "waiting for an opening to crack down,"
explained, was "the use of force, the arms race, mistrust,
was accepted by only 17 per cent.
psychological and ideological struggle."
The public approves of the economic initiatives Bush an-
For 50 years, U.S. foreign policy has been premised on the
nounced at Malta-encouraging U.S. business investment in
existence of a totalitarian threat-first Fascism, then Com-
Eastern Europe and granting favorable trade terms to the
munism. During almost all of our history before that, isola-
Soviet Union and Eastern Europe. But the public does not
tionism was the guiding principle of American foreign policy.
like the economic aid package Bush was pressured by Con-
Is there a danger that the United States could return to
gress to accept. Most Americans reject any increase in aid to
isolationism, now that we have achieved our mission of de-
Eastern Europe, including the nearly $1 billion aid package
feating totalitarianism? Not likely.
passed by Congress.
Americans have become used to a
Only a fourth of Americans object
world leadership role, and the public,
Before we commit
to the defense cuts being considered by
being better educated, is more con-
the Bush Administration. And while
scious of the complex strands of inter-
resources and incur
half of the public believes U.S. troops
dependence that tie the nation to the
should remain in Europe, the number
rest of the world.
new obligations
who think those troops should be re-
Nevertheless, isolationist pressures
internationally,
duced or withdrawn has been grow-
are bound to be felt. Isolationism is a
ing-from 13 per cent in 1982 to 15
populist sentiment. It is most promi-
Americans want to
per cent in 1982, 16 per cent in 1986
nent among the poor and the poorly
educated, those who believe that most
know, what's in it for
and 34 per cent now.
As the Communist threat dimin-
of the things we do for the rest of the
us?
ishes, Americans are not looking to
world are wasteful, pointless and un-
make new commitments. They are
appreciated. Sometimes, as in Viet-
looking to disengage and demobilize-
nam, they are right.
and to exploit new opportunities for
The end of the Cold War poses a
trade and investment.
challenge to 50 years of internationalism. The challenge is to
Every four years since 1974, the Chicago Council on For-
come up with a new mission in the world. It is a challenge
eign Relations has asked Americans to rate the importance of
that both political parties will have to face. Republicans will
various foreign policy goals. The goals that come out at the
have to figure out how to continue selling defense spending
top of the list are self-interested: protecting American jobs,
and interventionism when the United States does not face a
securing adequate energy supplies, reducing the U.S. trade
clear military threat. Democrats must demonstrate that
deficit, achieving arms control.
America's economic challenges require globalist, rather than
Internationalist goals always fall to the bottom of the list-
protectionist, solutions.
promoting human rights, bringing democracy to other coun-
There is a bottom-line requirement for our new mission in
tries, helping to improve the standard of living in less devel-
the world: It has to be firmly grounded in self-interest. Amer-
oped nations, protecting weaker nations against foreign ag-
icans do not seem to be in the mood for noble ventures or
gression.
great sacrifices.
Cold War goals-stopping the spread of Communism, de-
The public is not quite convinced that the Cold War is
fending the security of America's allies, matching Soviet mili-
over. By 54-37 per cent, a majority rejected that view when
tary power-come out in the middle. As the Cold War loses
polled by CBS News-The New York Times just before the
intensity, these goals are sure to drop in importance. That
Bush-Gorbachev meeting. People do, however, see a sharply
means that either Americans will become more self-interested
diminished Soviet threat.
or their leaders will have to find a new way to package
About equal numbers of Americans now see the Soviet
internationalism.
Union as "a peace-loving nation, willing to fight only if it
Here's an example. In May 1988, the Americans Talk
thinks it has to defend itself," and "an aggressive nation that
Security project asked the public to react to two statements.
would start a war to get something it wants." That is the same
One said, "It's time to reduce our financial commitments to
balance that prevailed at the end of World War II, before the
other countries and spend more on our problems at home";
Cold War started. As recently as 1985, the "aggressive" view
84 per cent agreed. The other statement said, "To keep the
of the Soviet Union outweighed the "peace-loving" view by 4-
U.S. economy growing, America must increase its participa-
1. Just since last May, the number of Americans who believe
tion in the world economy and in international affairs gener-
the Soviet Union is trying to dominate the world has dropped
ally"; 77 per cent agreed.
from half to a third.
Americans are not really hostile to internationalism. They
So why is there still a Cold War? Because Americans see
are just skeptical. Before we go off committing resources and
the Communist threat as changing, not necessarily dying. In
incurring new obligations, people want to know, what's in it
a USA Today poll taken last month, only a fourth of Ameri-
for us?
3026 NATIONAL JOURNAL 12/9/89
William E. Simon
Former Secretary of the Treasury,
Insight reader
The average Insight reader is far above
average.
They're business leaders, policy-makers,
even cabinet members.
Insight readers have unmatched
household incomes. Higher than Simmons
finds among readers of Time, Newsweek
or U.S. News - or their premium-priced
demographic editions. Higher, too, than
for readers of the traditional business
magazines.
And Insight doesn't just sit on the coffee
table. It gets read. Circulation is over
500,000 fully paid and total readership
is four-and-a-half times that high.
William Simon says this about Insight:
"It's provocative. It provides a point of
view that most of the standard publications
don't. In my judgment, for anyone involved
in international business and finance, and
most especially those involved in public
policy, it's absolutely mandatory reading."
If you want to get above average
results from your advertising, ask your
agency about Insight. Or call us direct.
New York 212-599-1730
Atlanta 404-248-1470 Boston 617-332-8596
Chicago 312-346-8810
Dallas 214-931-9001
Detroit 313-354-5050
Los Angeles 213-670-2334
Insight
Talk to the
powers that be.
Your average Joe.
COMPOSITE
As the nation's largest manufac-
powders and high energy
turer and the world's foremost
propellants for ordnance,
ENGTH
STRUCTURES
user of graphite fiber, we
ranging from small arms to the
THAT ARE
develop materials and struc-
largest field artillery.
OUT OF
tures for aircraft and missiles,
We build electronics for
as well as space applications.
THIS WORLD.
defense-from radar jammers
Spearheading the development
and dichroic displays for aircraft
Hercules Aerospace Company
of graphite fiber products is just
to millimeter wave seekers for
one of the strengths of Hercules.
missiles and smart munitions.
has risen to new heights with
composite structures for space
And most of the aircraft
Our solid propulsion systems
applications. We produced the
flying the free world use our
have been deployed on more
first primary space structure
Simmonds Precision electronic
than 400,000 tactical missiles
made from graphite for satellite
subsystems and components
and are part of every solid
telecommunications and the
for fuel management, engine
propellant ballistic missile in the
world's largest graphite com-
ignition or flight control.
U.S. arsenal.
posite rocket motor case for
Hercules Aerospace Company
space transportation.
We are a leading producer of
Wilmington, Delaware 19894
HERCULES
A Hercules Incorporated Company