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Originally Processed With FOIA(s): FOIA Number: S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Snow, Tony, Files Subseries: Subject File, 1988-1993 OA/ID Number: 13896 Folder ID Number: 13896-011 Folder Title: [News Articles 1991-1992] Stack: Row: Section: Shelf: Position: G 18 29 2 4 IRON CURTAIN PLAQUE This piece of barbed wire is a part of the Iron Curtain alongside the Hungarian-Austrian border, that palpalbly represented the division of the European continent in two halves. Its dismantling was made possible by the will of the HUNGARIAN PEOPLE and the recognition of peaceful coexistence and mutual interdependence. We believe that the artificial, physical and spiritual walls still existing in the world, someday shall collapse everywhere. THE PEASE REPORT A Confidential Newsletter to NH's Movers and Shakers TO: OUR SUBSCRIBERS September 18 , 1991 FROM: R. WARREN PEASE NO.16 NEW HAMPSHIRE SENATE Republicans are unhappy. No! Not unhappy, furious! Details of Senate President Ed Dupont's backroom dealings relating to the reshaping of the senate districts are being called a sell-out to the Democrats. The word has reached Republican lawmakers that Dupont has assured Democrat Senators Jeanne Shaheen and Beverly Hollingworth that he will not touch their districts. My word processor didn't fail. It is printing this as I intended it to be printed. Shaheen of Madbury and Hollingworth of Hampton two very liberal members of the upper chamber, worked very closely with Republican Dupont in the last session. To assure that this support continues, Dupont promised the seacoast duo he would not approve any redistricting plan that changed the existing make-up of Senate Districts 21 and 23. "He's screwing up redistricting, " is the expressed opinion of one of Dupont's senate colleagues. Most senators understand the politics of redistricting. What they can't understand is Dupont's wheeling and dealing with two of the senate's most liberal Democrat members. The remark of one Republican lawmaker was representative of the reaction of a majority of senate and rank and file Republicans when she said, "This kind of deal does nothing to help the party or Dupont's future political ambitions." There's little that can be added to her assessment. Dupont's reported deal with Shaheen and Hollingworth may help him get through next year's legislative session with less aggravation. It does nothing to enhance his political ambitions to become governor. # # # DISREGARD! We repeat disreard media reports, and the mouthings of Hugh Gregg that President George Bush is going to sit out the New Hampshire Presidential primary. We have talked personally with the political powers that be in Washington and the word is, "Under no circumstances will President George Bush sit out the primary." There you have it, the final word. And you read it here first! This doesn't mean you're going to have the kind of exciting presidential primary that we have witnessed in recent years. The opposition to Bush's renomination is almost non-existent. A full blown campaign isn't necessary. (Continued on page 2) © Copyright, AT LARGE, The Pease Report is published weekly for the confidential information of our subscribers by Media Images Ltd., Suite 111, Unit 4, 7 Colby Court, Bedford, NH 03110, (603) 472-8339. Subscription rates: 52 weeks $95, 26 weeks $60, 10 weeks $25. -2- But! This does not mean the President is going to by-pass New Hampshire and let his would-be Democrat challengers bang away at him without fear of a returned salvo. The excitement of past Presidential primaries in New Hampshire will be missing. George Bush will not. # # # THERE'S MORE FROM the political powers that be in Washington. Ignore the shoot-from-the-hip commentary of Hugh Gregg as it relates to the negative status of Vice President Dan Quayle. The President is not, we repeat, is not, going to dump Quayle from the ticket in '92. The liberal wing, what's left of it, of the GOP, would like to return to power in 1996 by convincing Bush to dump Quayle and select a liberal as his running mate. We've heard from reliable sources that the elder Gregg is a major mover in this grab for power. In his role as Republican National Committeeman from New Hampshire he has the ear of those national Republican liberals who want one more day in the sun before total darkness engulfs them. This is the reason behind Gregg's thinly disguised efforts to force Quayle into a Vice-Presidential write-in campaign. A write-in campaign he may be get, but Bush's support for Quayle's ouster will never be forthcoming. "No way," is the word out of Washington. Bet on it! Bet big. # # # DEMOCRAT PRESIDENTIAL aspirants are putting on a brave front for the public. But! To paraphrase a one-time hit song, "They're laughing on the outside and crying on the inside." The extent of their despair can best be judged by some enlightening financial figures that have been passed along to us. By Labor Day of 1983 the Democrat Presidential aspirants had raised $12 million. Remember this was the war chest put together for the right to oppose Ronald Reagan in his bid for a second term. You all know the outcome of that race. By Labor Day of 1987, the would-be Democrat Presidents had raised $17 million in their campaign to carry the battle to the Republicans. You all remember what George Bush did to Michael Dukakis. By Labor Day 1991, the would-be Democrat challengers have raised a mere $700,000. You're senses have not left you. That's $700,000. This isn't enough financial moisture to wet a political whistle, not a presidential political whistle. And keep in mind that this total is a national total. Money makes the political wheels turn. The Democrat challengers don't have it. # # # ELSEWHERE ON THE Presidenital front look for (Continued on page 3) -3- Iowa Senator Tom Harkins to be in New Hampshire for at least three days this week. He's picking up some support in the state and can be expected to generate his share of early interest among Democrats. We wrote "early-interest" because Harkins" talks conservative but votes liberal. This will go over well with those liberals in the party who want a possible winner and don't care what a candidate says so long as he votes liberal. But! There are indications he'll lose the party's more-conservative voters once his voting record becomes more publicized. Arkansas' Bill Clinton was expected to be the heart throb of the party's conservative wing but some skeletons have been unearthed in his basement. This may not help him pass political muster. Insiders say there are charges of marital infidelity which Clinton may not be able to brush aside. Democrat string pullers are saying privately Clinton could become the Gary Hart of 1992 if his candidacy lasts that long. Nebraska Senator Robert Kerrey is the new kid on the New Hampshire block. He's a stranger to New Hampshire Democrats and is expected to remain an outsider even if his reconsideration of an earlier reconsideration results in a bid for the Democrat nomination. In Washington the Nebraska Kerrey is considered "weird". Paul Tsongas has the shortest distance to travel and he's spending the most time in the state. But! Very few Democrats are taking his challenge very seriously. But he win by default. California's Jerry Brown will soon be grabbing his share of media space in New Hampshuire but money is going to keep him in low gear, SO the Democrats believe. This would seem to leave the field open for Virginia Governor Douglas Wilder. Here to, there is a but. A big but. The Democrats we've spoken with say they don't like the man. He comes across as "very unlikeble". No one will say this publicly for fear of being called "racist", but these political activists will find a role in other campaigns. This lack of a stand out candidate has Democrats thinking ahead to their party's nominating convention. They believe there won't be any one candidate who will have enough votes to capture the nomination on the first or second ballot. They see a scenario in which there are three or four ballots without a winner followed by the emergence of a compromise candidate. They think either Lloyd Bentsen or Mario Cumo would be acceptable to the delegates. Could such a series of events occur? Possibly! But! Not very likely. Whenever there is a field of little known candidates of national stature vying for a presidential nomination there is talk of choosing a candidate from the floor of the convention. Its been a long, long time since such an event has happened. 1992 doesn't give promise of being the year for change. One of the above mentioned candidates, or someone yet. to appear, will emerge as the front runner and when such a candidate comes forth, whatever his current standing in the polls, he'll (Continued on page 4) -4- be the choice of the convention. This you can almost bet on. # # # CALIFORNIA'S THREATENED plan to move up its Presidential Primary date to compete with New Hampshire has been put on hold. The Democrat boys on the coast are concerned that such a move at this time would interfere with the state's redistricting plans. This they see as more important than changing the date of the Presidential primary. It may come some day. It won't come in 1991 or 1992. # # # MEMBERS OF THE Governor's Executive Council were witness to an Executive Council "first" last week. The usually unflappable Governor lost his temper. He screamed his opposition to the Council's announced intention to act independently of the Governor and vote to oust Peter G. Weeks from the Portsmouth Police Commission. Peter Weeks has come under heavy, very heavy, fire for accepting a $25,000 check from Phil Weeks, no relation, who was recently convicted of misappropriating nursing home funds. Just prior to his conviction, Phil Weeks, reportedly turned over $25,000 to Peter Weeks for his kid's education. There was little doubt in anyone's mind that the $25,000 was nursing home funds, or at least funds that Phil Weeks would have to surrender once he was convicted and filed bankruptcy. When this became known to Governor Gregg, shortly after he had nominated Peter Weeks for another three year term and the Council rubber stamped his nomination, Gregg called on Weeks privately and asked him to resign. Weeks refused. Attorney General John Arnold then intervened, again privately, and repeated Gregg's request that Weeks step down. Weeks refused. At a private get together the council attempted to use it's power of removal. Second District Councilor Peter Spaulding led the charge with the argument, Weeks' continued presence on the commission was a black eye to police everywhere in the state. A police commissioner he argued, should be above reproach. The Governor and Attorney General agreed. But! It's a helluva "but". Both Gregg and Arnold argued against the council taking action. So help me, it happened! Gregg's Attorney General told Councilors they lacked sufficient grounds to oust WEEKS and if they took any action they would expose the council to a lawsuit. His argument carried the day. The Council fumes. Weeks stays. At least temporarily. The citizens of Portsmouth were SO angered by the turn of events they were successful in getting a referendum on the November ballot which will, if adopted, abolish the police commission. There is some irony connected with this. WEEKS when he was mayor worked hard to get the city council to abolish the commission. That's right. (Continued on page 5) Now that the voters want Weeks gone from the commission and are willing, or at least seem willing, to abolish the commission to accomplish this, the ex-mayor may achieve what he failed to achieve when he occupied the seat of power. We'll keep you updated. # # # TRANSPORTATION Commissioner Charles 'Leary may be out of a job come December. The Bedford man's term expires on the third of that month and he will have to do a lot of fence mending between now and December 3 if he wants the Council to give him a four-year term. O'Leary has not made friends with a majority on the Executive Council. He's been a headstrong, 'll-do-it-my-way kind of a commissioner. He's rubbed many people the wrong way. And! There is another shortcoming that could prove to be more important in any reappointment consideration. He has not done the kind of job that makes him indispensable to the operation of the agency. We'll have more on this. # # # JOHN EAMES, a name long familiar in political and criminal law doings in Grafton County, may be nearing the end of his stint as county attorney. Tn his 1990 campaign for re-election he was (Continued on page 6) CAREER POSITIONS: BUSINESS BROKERAGE MANAGER - REALTY BEDFORD, N.H., FOR START-UP COMPANY THAT IS AFFILIATED WITH LEADERS IN REAL ESTATE RECRUITERS BROKERAGE FIELD, EMBARKED ON AGGRES- SIVE EXPANSION PROGRAM. LOOKING FOR IN- OFNE DIVIDUAL TO FORMULATE & IMPLEMENT MARKETING PLAN, RECRUIT & MOTIVATE SALES TEAM, AND ESTABLISH COMPANY POLICY. COM- PENSATION THROUGH DIRECT SALES OVERRIDE AND EQUITY POSITION IN COMPANY. BUSINESS BROKERAGE EXPERIENCE A MUST! REAL ESTATE SALES: RESIDENTIAL SALES WITH MANCHESTER AREA FIRM WITH EMPHASIS SEND RESUME TO: ON LIQUIDATION OF FORECLOSED PROPERTIES. MR. REAL TORREZ REAL ESTATE LICENSE REQUIRED - TRAINING REALTY RECRUITERS OF N.E. PROVIDED. 10 CHESTNUT DRIVE BEDFORD, N.H. 03110 REAL ESTATE SALES: COMMERCIAL AGENT, REAL ESTATE LICENSE (N.H.) REQUIRED - MANCHESTER AREA TRAINING PROVIDED. POSITION INVOLVES DEALING WITH BUSINESS PEOPLE, DURING BUSINESS HOURS, MONDAY THRU FRIDAY. -6- put to the test by challenger Ken Anderson. And! Eames' popularity appears to have declined since then. His laid-back, 'll-get-to-it-when-I-can approach to criminal prosecution has voters upset. What has the citizenry aroused is Eames' failure to press the prosecution of a man accused of beating his wife to death with the butt of a rifle. The case has been dragging for a long time. # # # SHORT TAKES--MAX HUGEL, the former chief spy of the CIA has formed a national committee to raise dollars for the legal defense of members of the agency, past and present, who come under attack from lawmakers and detractors intent on discrediting the agency. If you think the Presidential Primary season is dull in New Hampshire you should take a trip to Iowa. Political action in the farm state which tries to go one up on New Hampshire by holding statewide party caucuses a week earlier than the Granite State, is less exciting than a corn husking bee minus the corn. Will or won't Warren Rudman seek reelection, is the question of the week, and the man from Nashua is adroitly grabbing himself some free publicity. I won't play his game. But! Few people remember that Rudman, when he made his first bid for the Senate, told voters he would seek only two terms. Will he follow Gordon Humphrey's example and live up to his campaign promise? POWER Some Have It, Others Want It, We Deliver It. Each week thousands of New Hampshire's most powerful people turn to the pages of AT LARGE - The Pease Report for a confidential look at what moves the state politically and economically, and the people who push the buttons that generate the shifts and slides. Harness The Power Advertise on the pages of AT LARGE - The Pease Report Call Today 472-8339 Ask for Ed Pease ivy business forum Industry Profile Graduates With Full-Time Employment Arts-7 TESTING THE WATERS: Business-220 Comm-21 Comp./Engine-19 Education-30 Career Opportunities in the "Real World" Government-16 Health-17 Legal-26 Research-9 Skill Labor-2 Social-13 Sports-3 Unknown-3 Introduction by Joyce Campbell Management Consulting by Christina Auth These are statistics for Dartmouth College Investment Banking by Joyce Campbell Office of Career and Employment Ser- the second world war, with the appear- Commercial Banking by Bill Gaylord vices, 591 of the 1042 graduates in the ance of Booz-Allen Hamilton and Accounting by Barry Hurwitz class of 1988 planned to find full-time McKinsey as well as the emergence of employment. Of these 591 graduates, western European firms, management Real Estate by Gregg Brockway 71% of had been offered jobs. Current- consulting became firmly established. ly, 394 are employed -- the majority of Since the 1950's and 1960's, smaller them (220) are in business. "sole practitioner" firms appeared and While reported salary figures ranged have since become a significant force in Christina Auth, Joyce Campbell, Bill Gaylord, Barry Hurwitz are juniors from $10,000 to $45,000, the average the consulting business. Finally, two at Dartmouth College. Gregg Brockway is a senior at Dartmouth starting salary for those offered full- other important developments in the College. time jobs in the Dartmouth class of 1960's have further changed the face of 1988 was $23,917 (Leonard W. Chang). management consulting. These include Introduction ing fields for corporate recruiters from Based upon these statistics, it was the arrival of pure strategy houses such some of the nation's most prestigious discovered that the areas of business as the Boston Consulting Group (BCG) Each winter Ivy League campuses firms and corporations. Students ner- which attract the most students are con- and the expansion of "big eight" ac- are remarkably transformed into hunt- vously don pinstripes, compile impres- sulting, investment banking, and com- counting firms into consulting services. sive resumes, and review various com- mercial banking. In our quest to learn Although it is difficult to define pany profiles. more about these popular industries, we management consulting precisely, the Number of Graduates Entering Business Through this whirl- interviewed various Dartmouth gradu- most commonly accepted definition is 250 wind of preparation, ates and executives and compiled other that management consulting is "an advi- visions of high- pertinent information. Through the fol- sory service contracted for and provided salaries and big lowing five profiles, we hope to share to organizations by specially trained and 200 Wall Street names with you this insight and to provide a qualified persons who assist in an inde- Graduates may become reali- revealing glimpse at various careers for pendent and objective manner, the of Graduates ties. the future businessperson. client organization to identify manage- 150 Within the past ment problems, analyze such problems, decade, the number Management Consulting recommend solutions to these problems, of college graduates and help, when requested, in the imple- entering business- Although management consulting is a mentation of solutions" (Greiner and 100 1980 1982 1984 1988 1988 1990 related careers has relatively young industry, it has grown Metzger, Consulting to Management). Year of Graduation signficantly in- rapidly since the first general-consulting In general, the industry is distinguished creased. According firm, Arthur D. Little, was founded in by its advisory nature, the limited num- to statistics from the the late nineteenth century. Following ber of people qualified to give advice, These are statistics for Dartmouth College Dartmouth College their role as independent and objective 34 Fall 1989 Fall 1989 35 ivy business forum Industry Profile Almanac of Jobs and Salaries, junior to be very bright, "creative generalists" As a result of the 1987 Crash, the se- Some specialize in short term goals like partners earn an average of $150,000 possessing a huge range of interests, the curities industry experienced a tremen- early financing and start-up functions, yearly plus bonuses and the right to pur- close relationships that he develops with dous amount of structural and function- while others approach longer-term pro- chase shares of the firm; Senior partners clients, and the sheer variety of experi- al upheaval. Today, it is simplistic to jects of management, personnel devel- may have a salary in the range of ence that he encounters on a daily basis. think of investment banking as a homo- opment, and problem resolution. Be- If one decides to eventual- geneous industry that was affected simi- cause venture groups are generally ly move out of the consult- larly by this change. When contemplat- small, competition for positions within junior partners earn an ing field, the experience ing career possibilities, students should the field is intense. that one accumulates serves explore the various aspects of these average of $150,000 yearly as a career-accelerator and firms. Beyond the basics of raising, Investment banking offers valuable provides a solid overview trading, and managing capital, invest- plus bonuses and the right to experience to a select group of students of the business world. Peo- ment banks offer many alternative spe- who wish to pursue any of these special- purchase shares of the firm ple in consulting feel that cialities: ities within a particular firm. However, primarily they attain an ap- certain characteristics are especially in- preciation for teamwork CORPORATE FINANCE -- The corpo- dicative of success as an investment and the power of a small, rate finance department of an invest- banker. Recruiters search for an essen- $300,000 as well as other compensa- intense group. They also derive a sense ment bank provides a variety of services tial combination of traits -- the high in- tion. Recent figures report that new of affiliation with an exceptional group to corporations --managing underwrit- tellectual ability to analyze complex sit- senior partners may earn as much as of people who demonstrate that there is ings, providing advice on mergers and uations and quickly draw accurate $600,000 annually. and veteran partners value to their atypically intellectual ap- acquisitions, and offering solutions to conclusions; a fascination with corpo- have been known to make in excess of proach to business. other financial problems. In this depart- rate finance; a spirit of entrepreneurism; S1 million. ment, success depends upon the ability and the commitment to a demanding ca- Currently, minorities have little pres- Investment Banking to anticipate client needs and exploit reer. If a student fits his description, his ence at major consulting firms and they market opportunities. opportunities are endless. only comprise between two to ten per- A pinstripe-suited figure occupies a At major New York investment cent of firms on average. Women make spacious office within the confines of a MERGERS AND ACQUISITIONS banks, financial analysts and associates up about 25 to 40 percent of entry-level prosperous Wall Street firm. With a Ro- With the advent of Time-Warner, RJR, earn starting salaries of approximately positions, and roughly ten percent of lodex at his fingertips, he makes numer- and other billion $31,000. MBA's partners are women. However, these ous calls to his investors - managing dollar deals, mer- Investment banks have usually start at a figures are expected to increase with the their portfolios according to the most re- gers and acquisi- base salary of expanding number of minority and fe- cent economic and industrial informa- tions has become continued to cut their $60,000. Howev- male business school graduates. Al- tion. Predicting market fluctuations and a high profile po- investing capital in a fast-paced envi- overhead and streamline er, "total compen- though management consulting is a tra- sition in the world sation is signifi- ditionally male-dominated field, and is ronment appeals to this Gekko-ish fig- of investment ure. banking. M&A staff organization in cantly higher demanding for women who seek to bal- because of bonus- ance their career with family, the out- In the 80's, this mystique attracts associates design order to increase es ranging from look for women in consulting is particu- many young, competitive Ivy League major strategic 25 to 100 percent larly optimistic. Consulting is an students to the world of investment objectives productivity. of the original sal- attractive option because of the flexible banking. However, as an industry, in- through formulat- ary figure. A and divisible nature of the work. Typi- vestment banking was nonexistent in ing takeover strat- chairman at an in- cally, a consultant will split work be- the United States until the 30's. With the egies and analyzing the eligibility of ac- vestment bank may receive a salary of tween two clients, so this makes it sim- aftermath of the Crash, the 1934 Glass- quisition candidates. Because of the $150,000 with a bonus that could boost ple to tailor the work-load and reduce it Stegall Act separated the functions. of recent escalation of activity and increas- his compensation over two million dol- to one client if necessary. Women may commercial (collecting deposits and ing competiveness" mergers and acqui- lars. still encounter barriers to entry at the lending business) and investment (issu- sitions is a highly challenging, and yet Banking and securities industries are highest levels of partnership, yet this is ing and handling securities) banking. significantly rewarding field. slowly recovering from the shattering likely to change as more women enter Banks had to make a vital decision, results of the 1987 crash. Companies the industry. about which path to pursue. Those who VENTURE CAPITAL Venture capi- have continued to cut their overhead In conclusion, management consult- opted for the investment side became tal involves the financing of high risk, and streamline staff organization in or- ing is a highly rewarding, well paying, concerned with raising capital through rapidly-growing companies. Since the der to increase productivity. Some firms and challenging profession. Carl Stern issuing securities and providing other late 70's, investment banks have been are suffering from increased competi- highlights as the three most enjoyable services for "corporate" clients -- involved in raising capital for small, tion for investors' dollars while other aspects of his work the interaction with networking through old friendships and high-tech companies. Venture groups brokerages are hurt from the defection people involved in consulting who tend other business connections. pursue different investments strategies. of equity issuers and investors. Howev- 38 Fall 1989 Fall 1989 39 ivy business torum Industry Profile er, one potential change in the regula- computer programing knowledge, it is stand the corporation, but, not to partic- analysis and projections of how a com- tion of the banking-finance industry easy to pick out general skills and indi- ularly train them in a dedicated way." pany will react in certain situations (re- the repeal of the Glass-Stegall Act vidual characteristics most employers In discussing the training programs cessions, liquidation of certain assets, may bolster current conditions. Most look for. There are several "buzz- themselves, Nigel Ekern, a third year etc.) which usually last a year to a year analysts predict that the successful un- words" which are commonly thrown analyst with Chemical Bank, spoke and a half. Because most daily tasks fo- ion of the investment and commercial around by commercial banking recruit- highly of the quality and benefits of the cus on dealings with other companies, banking industries will create a few ers: analytical/qualitative skills, com- program he had completed at Chemical. most business is done from nine to five. large, full-service firms, other firms will munication/interpersonal skills, creativi- According to As Ekem says, concentrate upon their traditional ty, flexibility, and the essential Ekern, Chemi- "I tend to keep strengths - re-establishing niches in component-initiative. Trying to iden- cal's program Horror stories of my customers' wholesale banking, retail banking, or tify a certain type of persona, or certain provided all the hours. It's hard mergers and acquisitions. skills that are particular to commercial training neces- training programs with to do anything banking has not yielded any specific sary for the po- Commercial Banking sixteen hour workdays with anybody traits or qualities outside those con- sition. There outside the bank tained in the pool of buzzwords defin- was no specific background re- of monotonous number outside those The Commercial Banking industry ing marketable skills. hours." According to Richard Braddick, Ex- quired. The has been growing larger because com- crunching were According to mercial banks are now able to provide ecutive in charge of the "Individual" program provid- Ekern, there an increasing number of financial ser- banking sector at Citibank, Citibank is ed a broad busi- dispelled. seemed to be a vices for its customers. While the main constantly looking for individuals who ness background natural break function of commercial banks is to ac- have a wide variety of backgrounds, tal- that Ekern felt with the bank's cept deposits and loan money to indi- ents, training, experience, and educa- will make him training pro- viduals and businesses, the deregulation tion. Because of the structure of the marketable in areas outside commercial gram at the three year point. This is the of interest rates has caused commercial "Individual" Bank (not a traditional banking. point at which most people return to banks to expand to commercial bank, but a type of retail In contrast with investment training school to carn an MBA. Ekem said no include "fee" bank-centered programs, Ekem felt that commercial more than 20% of the third year analyst oriented services. more towards run- banks invested more money in their had MBAs, while in the higher levels, The loosening of Citibank is constantly ning consumer training programs. This may be reflect- about 50% of the executives had the Glass-Steagall looking for businesses), a mar- ed in starting salary differentiation— MBAs. It is not uncommon for those standards restrict- keting orientation commercial banks may have lower start- remaining with the bank longer than ing commercial individuals who have and an interest in ing offers in order to compensate for the three years to go to night school while bank activities has running consumer costs of their training programs. Be- working. An MBA does not seem to be allowed the com- a wide variety of businesses are cause of the bank's increased invest- a necessity for upward mobility. There mercial banking more desirable ac- ment in their training programs, they are are formalized routes for advancement, industry to move backgrounds, talents, cording to Brad- more concerned with holding on to em- but, relatively speaking, there are more in the direction of dick. Again, it is ployees who have completed them. Ac- MBAs in the higher executive positions an "all- experience, and important to keep cording to Career Employment Service in both Citibank and Chemical Bank. encompassing" fi- education. in mind that the figures, the median starting offer for When asked what they enjoyed most nancial institution. department or spe- commercial banking in 1988 was about in commercial banking, both Presently, com- cific area within $31,000 per year. The range was from Braddick and Ekern pointed to the di- mercial banks are the bank's struc- $22,500 to $34,500. versity of the job. Braddick felt lucky only restricted from issuing U.S. stock ture will dictate qualifications. At Chemical Bank, the first three to to be managing in such a change related based securities. This allows the com- The lack of required background eight months of the training program environment and was confident in rec- mercial banking industry significant skills or orientation leaves opens the are academically oriented. Horror sto- ommending commercial banking as a flexibility as a whole. question ofthe specific nature of train- ries of training programs with sixteen career. As he said, "We're a very vi- Expansion of commercial banks into ing programs. Again, training programs hour workdays of monotonous number brant business growing fast, and in this other fincial services has opened a will be specific to different banks or dif- crunching were dispelled. Ekern com- respect, able to challenge anyone." Ek- broad range of entry level opportunities ferent sectors within the bank. At Citi- pared the first part of his program to em points to the lack of monotony, and available to Ivy League Students. bank, each division sets up its own pro- school, in which hours were dictated by enjoyment in having a different busi- Generally, positions include: sales and gram which may vary from a few study habits. This initial training stage ness come across his desk each day. marketing, computer programing, and months to two years. Braddick stressed is followed by a phase working mainly The one negative feeling he expressed research and analyst positions. While the idea of hands on training. He sug- on transactions. This period of working about commercial banking was the slow each of these positions require different gests the value of such training is, "To purely as an analyst, which, consists for process in the day to day making money abilities, accounting background or give people a context in which to under- the most part of financial statement for the bank. "Commercial banks are 40 Fall 1989 Fall 1989 41 U.S. Influence: The future of the Seychelles hite beaches, sun, ocean, tropical lushness the constitution back into force. W for tourists, the Seychelles is an island Still, opposition leaders are encouraged. On April paradise. But for the some 100,000 citizens 12, Sir James will return to the Seychelles from his of the archipelago in the Indian Ocean off exile in Britain to start rebuilding democracy. the coast of Africa, life has been anything but a tropical While the plight of the Seychelles is unlikely to keep idyll these past 15 years. In 1976, the string of 110 small many Americans awake at night, it is in the interest of islands gained independence from the British. Just one the United States to see democracy-restored. A demo- year later, in June 1977, the country's first democrat- cratic regime is likely to be more friendly to the West ically elected president, Sir James Mancham, leader and to American interests, and, from a strategic stand- of the Seychelles Democratic Party, was ousted in a point, the Seychelles are of undeniable importance. violent coup. The archipelago covers more than 200,000 square Since then the Seychelles have been ruled with an miles of the Indian Ocean, through which tankers car- iron hand by France-Albert Rene, the Marxist leader rying oil from the Persian Gulf to the industrialized of the Seychelles People's Progressive Front, with the world pass every day. It is no coincidence that since help of a 3,000-man army. Many of Mr. Rene's political the decline of the Soviet Union, Iran and India have opponents have been driven into exile. No dissent is shown a lot of interest in developing ties with the tolerated in this one-party state, where the government Seychelles. controls the media and informers are everywhere. For the United States, specifically, at stake is a sat- aundering money for the Mafia and hosting Soviet ellite tracking station, dating back to 1963, which mon- spy operations have been other of Mr. Rene's pursuits. itors Soviet satellite activity and directs U.S. surveil- It is no surprise that since Mr. Rene's party took power, lance satellites over strategic areas, The United States 10 percent of the population has fled. also has a naval base on the island of Diego Garcia. Now, however, with many African nations moving These installations have been allowed to remain under toward pluralism and democracy, change may be com- the Marxist regime in return for foreign aid and the ing to the Seychelles, too. The ruling party's loss of understanding that the United States would not rock Soviet sponsorship is one reason. The determined cam- the boat. paign waged by the exiled Sir James and other opposi- But the Cold War is over and with it any compelling tion politicians via the wonder of the fax is another. So need to cozy up to the likes of Mr. Rene. Last summer, effective has the fax campaign been that in 1990 the members of Congress were pressing the State Depart police warned that anyone receiving "seditious, sub- ment to take more interest in encouraging democracy versive, abusive or obscene" material could be liable on the islands. And since he arrived in the Seychelles to criminal prosecution and the confiscation of his in the fall, the new U.S. ambassador, Richard Carlson, or-her fax machine. has been leading an administration effort to press the In any event, in December last year Mr. Rene ex- government for pluralism. The December break- tended an invitation to "all Seychellois currently resid- through is clear evidence that U.S. nudging is working ing overseas to return to the Seychelles if they so wish The assets the United States has in the Seychelles and participate in the political life of the country in a would certainly be far more secure under a genuinely responsible manner," urging them to "forget past divi- pro-Western democratic government than under one sions." He has promised a Consitutional Commission that in effect holds them hostage. The administration to be elected in July 1992 and parliamentary elections should continue to let Mr. Rene know that it is no longer later in the year. willing to remain indifferent to the people of the Sey- In fact, the Seychelles already has a perfectly good chelles and that the United States will be paying close constitution, one based on British principles of law and attention to ensure that Mr. Rene makes good on his representative government. Mr. Rene's party sus- new promises. pended it in 1979, and the only action needed is to bring One of a series on U.S. policy toward unfree countries WASH TIMES 3/23/92 PERISCOPE THE GULF RUSSIA FAX Fear of Flying Gorb Sequel? D espite Iranian President M ikhall Gorbachev may Hashemi Rafsanjani's re- be plotting a political cent efforts to improve rela- comeback. The former tions with the West, U.S. intel- Soviet leader went out of ligence officials worry that his way last week to en- Teheran's rearmament pro- dorse the economic re- gram could make it a serious forms of his rival, Rus- threat to its gulf neighbors by sian President Boris the mid-1990s. Iran has allo- Yeltsin. But well-placed cated $10 billion to rebuild its Russian sources say that armed forces over the next Gorbachev is quietly five years. It is now taking gathering friends and ad- delivery of a squadron of visers at his Moscow Bush and Quayle at the State of the Union address, author Noonan MiG-29s purchased from the tank, the Interna- former Soviet Union in Sep- tional Foundation for THE PRESIDENT tember 1990. Teheran's main Social, Economic and Po- objective, the officials say, is to litical Research, to de- Message: I Need Help redress the military balance vise alternatives to with Iraq, whose armored Yeltsin's game plan. A tanks still outnumber Iran's key member of Gorby's W ANTED: Speechwriter for to return to the White House by three to one. "There is also team is Aleksandr Yakov- frequently tongue-tied full time. cause for concern that Iran is lev, the intellectual archi- president/candidate. Famil- The president's top advis- conspiring to build a strategic tect of perestroika. iarity with health-care issues, ers, particularly campaign strike capability," says a U.S. Their headquarters: the economic woes and supermar- chiefs Bob Teeter and Fred analyst. It could include nucle- former Soviet Commu- ket-checkout counters a plus. Malek, are now worried that ar weapons, long-range deliv- nist Party's social-sci- George Bush last week put Bush's re-election effort could ery systems and missiles. ences institute. out a call for new White House be hampered by his often wordsmiths. Peggy Noonan, a uninspired rhetoric. To back veteran of the 1988 presiden- up Noonan on everyday ap- UPDATE tial race, has agreed to craft pearances, Bush's men have the president's remarks for ma- asked each cabinet department Looking jor campaign events. She for a list of top writing pros- came on board after stepping in pects. At least one agency, for Leaks at the last minute to rewrite SO far, has replied that none of the State of the Union Message. its writers is good enough. The Senate may never find But Noonan, a Reagan "Help," said one Bush aide. who leaked Anita Hill' speechwriter, doesn't want "We're desperate." Headed for Iran: MiG-29 charges that she was sexually harassed by Clarence Thomas VITAL STATISTICS CONVENTIONAL WISDOM WATCH But special counsel Peter Fleming is casting a wide net it Fat Cities '92 Campaign Edition his search for the tipster. The reporters who A new international survey T he conventional wisdom has found its perfect embodi- broke the of 12 occupations-blue- ment: Richard Nixon. Whatever he says on any subject, story-Nina collar and white-shows you can bet it's fairly close to the CW, humor-free division. Totenberg of which city's workers earn the National most per hour: PLAYERS Conventional Wisdom Public Radio and Timothy Average Earnings in: B. Clinton USS Frontrunner is taking on water, but Phelps of still the biggest ship in the channel. HOURLY WAGES IN U.S. DOLLARS Newsday- Zurich $16 P. Tsongas May actually win N.H., setting off after- have been Paul free-for-all. subpoenaed. Anita Hill Geneva $14.5 Luxembourg $11.4 B. Kerrey War hero can't even gain when focus is on They've draft dodging. Try the Debra Winger card. agreed to appear but won't Tokyo $10.9 name their sources. Fleming $10.7 T. Harkin Helinski Iowa Fave Son more like grouchy is also questioning leaders 01 grandpa. "New New Deal" is Old Old Spiel. New York $10.5 liberal interest groups, inter J. Brown Love your threads and that 1-800-No-Bull viewing Democratic and Re- Los Angeles $10.4 gig. Hang in there, babe. publican staffers and review Oslo $10.2 Late Entries Cuomo, Shlomo, Perot, somebody-the ing Senate documents, phor Copenhagen $10.1 draft board is calling. logs and computer SOURCE: UNION BANK OF SWITZERLAND messages. CLOCKWISE FROM TOP: DOWNING-NEWSWEEK, BARRYTALESNICK-RE 6 NEWSWEEK FEBRUARY 17, 1992 DOD, SCOTT ANDERSEN RENTA? TOMORROW BUSH'S CAMPAIGN TUNEUP BY KENNETH T. WALSH AND DAVID GERGEN CHICK HARRITY-USN&WR END-RUNNING THE PRESS CORPS. Though still sputtering, George Bush's political machine is gradually gearing up for next year's campaign by trying out new techniques and old themes that are likely to become the core of the president's strategy. Some Bush political advisers think the most in- novative change will be a much greater reliance upon local television to reach the voters, bypassing the media in Washington. Dorrance Smith, until recently the executive producer of ABC's "Nightline," joined the White House staff this spring at the personal request of the president, a longtime friend. Having watched the sharp audience decline of the network news shows, Smith has begun experi- menting with different formats to get Bush's message out. His first road test was in mobilizing public Bush fluctuates be- support in states such as California, Texas and Florida for a congressional vote on trade with Mexico. tween harsh and soft Bush and other officials found they could spell out the arguments for trade much more effectively attacks on Demo- through satellite conversations with local anchors than in nine-second sound bites on the evening crats. His recent dia- news. tribe against them for playing racial politics Though Smith won't speculate on campaign plans, others foresèe Bush sitting down with local news- and backing quotas casters for round-table discussions on the road; Local anchors are often unqualifiedly enthusiastic was a last-minute about putting the president on the air, and their questions are usually softer than those of the national outburst. press corps. The White House is also letting local affiliates and small independent networks cover Bush with camera crews only, ensuring pretty pictures and avoiding the presence of a hectoring re- ABC porter. And in the works are more teleconferences, which allow Bush to deliver an address to and answer questions from an audience anywhere in the country. In effect, the White House is building its own sophisticated television production company. ENVIRONMENTAL PORK BARREL. Another new wrinkle will be an increasing use of environmental projects to showcase the president. Budget Director Richard Darman has seeded the administra- tion's latest budget proposal with conservation plums such as new wilderness areas, parks and camp- grounds. If Congress approves that budget, Bush plans to cut a lot of ribbons next year to open new Dorrance Smith or sites, especially in voter-rich and environment conscious California. The administration is proposing, ganized two telecon for example, to spend $11.5 million to buy 1,300 acres of virgin land in the Santa Monica Mountains ferences for Bush last and $13 million for a 6,000-acre expansion of the Channel Islands National Park off Los Angeles. week, one on educa- tion to public broad- GOOD COP, BAD COP. Prodded by a new chief speech writer, Tony Snow, former editorial-page casters in Orlando, editor of the conservative Washington Times, Bush has also begun road-testing more hard-edged Fla., the other on the speeches. In a series of graduation addresses, the president has decried hiring quotas, abortion, economy to ad execu- political correctness on campus, Lyndon Johnson's Great Society social programs and old court tives in Nashville. decisions against school prayer. Accompanying the harsher rhetoric has been a flurry of promises that he will veto a wide range of bills coming from Congress. Conservative leaders such as Sen. Phil Gramm of Texas think that if Bush pursues a more confrontational strategy, the GOP could pick up a number of congressional seats in 1992, especially against Democrats in the South. But Bush is still wavering on how hard a line to take, in part because some of those themes haven't had much resonance. Last week, when his supporters were sure Bush would bash Congress in an evening address at the White House, he backed off. Stung by critics who say the president has been too cynical and divisive, White House aides are also dancing away from recent attacks on quotas. On some days, Bush seems to side with Republican "tough guys" - Chief of Staff John Su- nunu, media adviser Roger Ailes, GOP strategist Charles Black and Georgia Rep. Newt Gingrich; on New White House others, he listens to the more soothing voices of strategist Robert Teeter, who is expected to man- speech writersTon age the re-election, and Darman. Snow is helping Bush sharpen his issue Never far from campaign plans will be the president's continuing preoccupation with foreign affairs, differences with especially East-West relations. That, of course, will be highlighted in his upcoming summit with Soviet Democrats and pro- President Mikhail Gorbachev, and Bush plans at least one other summit before the elections. He is moting the notion also expected to meet more often with other Soviet leaders, starting with Boris Yeltsin, in the next that the president is couple of weeks. Teeter says the campaign will be designed to show how Bush's steadiness and interested in ideas. knowledge of foreign affairs are vital because the whole world is realigning. Given current uncertain- 35 U.S.NEWS & WORLD REPORT, JUNE 24. 1991 Photocopy-Preservation EVERY TIME HE APPROACHES A PODIUM, they break into a sweat; every time PUTTING he steps off Air Force One into a throng of reporters, they're overcome by that sicken- ing twinge of dread; every time he gives a speech, fields a question, goes out in public- every time he opens his mouth and threatens to speak, George Bush's speechwriters close their eyes and pray to God that he reads his prepared text verbatim, follows the TelePrompter precisely, and, oh, Lord, please, doesn't ad-lib a single noun, verb, adjec- tive, or phrase that they know they'll regret later. WORDS But he does it anyway. Just this month, in a speech intended to smooth tensions between Democrats and Re- publicans battling over the civil rights bill, Bush inserted an off-the-cuff swipe that he'd heard White House Chief of Staff John Sununu make about the Democrats' so-called quota bill: "You can't put a sign on a pig and say it's a horse," Bush exclaimed, earning him ugly IN recriminations from civil rights leaders and injuring his chances of reaching a compro- mise. Likewise, when a reporter questioned Bush last year, not long after be announced a tax increase, the president, who was on his morning jog at the time, flippantly brushed off the question: "Read my hips," he mocked. And then there are Bush's many ponderous public statements, which often bear little THE resemblance to the English language: "I notice now that some of the critics who were so opposed and using this fantastical- ly, diabolically, anti-me language, they come up now saying, 'Well, if you get A, B, and C, then it will be all right or then we'll understand.' Let them just stay tuned in." "I used to think, 'Damn it, I wanted it to echo PRESIDENT'S through history,' says one Bush speechwriter who's felt the nausea of seeing a speech that one worked on for weeks-going without sleep, food, or natural light-haplessly mangled by one of Bush's cornball asides. "But then 1 grew up a bit." Now, the speechwriter says, "I wince it up a little bit maybe. But once I get it the best I can, I MOUTH sign off." Not everyone takes it so well. In April, Bush's chief speechwriter, Chriss Winston, signed off for good. She cited the usual litany of reasons for leaving a government post "The hours were just too much. I live 30 miles out of town, which means a 45-minute drive at 11 p.m.," and so on. Winston wasn't the only scribe to leave. Mark Davis also checked out recently for a George Bush hates post as California Gov. Pete Wilson's chief speechwriter. Ed McNally, another Bush speechwriter, fled as far from the Beltway as he could have without a passport. He's speechwriters. He kicked them now the chief prosecutor for the state of Alaska. Speechwriter to the president. It sounds great at first. Work at the White House. Wear a out of their posh offices. cool ID badge. Chat with the president now and then. Chat? Hell, you tell him what to say. Sounds great, sure, but it doesn't quite turn out that way. Because all told, writing Snatched away their White speeches for the president is quite simply a lousy job. The hours are miserable, the pay mediocre. Officially confined to the dark corner of anonymity, speechwriters receive lit- House mess BY AILEEN the or no public recognition for their work; that goes to the president and to the policy wonks who run roughshod over the speeches, torturing phrases, convoluting sentences, passes. Keeps HEFFERREN and taking grammar hostage. Photographs by The sometimes fierce competition among speechwriters for recognition and praise fos- them locked Darrow Montgomery H ters enmity in the ranks. And while speechwriters for Ronald Reagan could at least take solace in a few measly prestige perks, upon taking office Bush stripped his speechwri- away from the public. Is it any ters of their ragged epaulets and shunted them off to the far barracks of the White House. Unlike his predecessor, who wanted speechwriters to preach the gospel of Rea- wonder that the Wimp's words ganism, Bush watered down his own speechwriting department with uninspired left- overs from other departments and made them answer to White House policy geeks. It's slip his lips with all the elegance no wonder Bush's speeches are so lame. He did everything he could to make sure they would be. So who could blame Winston, Davis, or McNally if they went packing simply of a fur ball from a cat's throat? because they couldn't take it anymore? Into the gap left by the departing Winston stepped 36-year-old Tony Snow, editorial Incoming Bushspeak director page editor of the Washington Times and regular gum-flapper on Fox Television's Mc- Laughlin Group rip-off, Off the Record. Snow's job is to clean up Bush's speechwriting mess. With the serious Democrat-bashing of the 1992 presidential race only months Tony Snow has accepted the away, Bush wanted a wordsmith who could provide him with the rhetorical armor he' need to keep his pits dry in debates against such fierce potential Democratic challengers assignment to help the prez make as Iowa Sen. Tom Harkin, Arkansas Gov. Bill Clinton, and, yes, maybe even New York Gov. Mario Cuomo. Snow has already jostled Bush's speeches with a few jolts of rheto- peace with the English language. ric. But if he's to turn Bush into any kind of orator at all, the president's entire 24 JUNE 199/CITY PAPER Hendrik Hertzberg, shaper of Cartertalk speechwriting operation will need electro- 13-, 14-hour days," but because he no longer were custodians of Reagan's message. It was talk about how Reagan's speechwriters were shock. faces the grueling deadlines of daily journal- like being dropped in the jungle and told to "out of control," and that rather than put- ism, "The hours don't beat me up. fight our way out." ting the president first they were "advancing 1 first it's thrilling to write something But even if the hours don't beat you up, Bush's speechwriters reflect their boss' their own agendas." No one batted an eye A and see it in the paper the next day, your colleagues might. In a job where recog- more pragmatic (some say indecisive) ap- when Ken Bakshian used to hang out at the says Ben Wattenberg, the eternally op- nition is scarce, rivalry among proach toward politics. They share a certain National Press Club after work. But one timistic newspaper columnist and American speechwriters for credit and position-in-the Republican centrism with an occasional Bush speechwriter says that early on Bush's Enterprise Institute policy analyst who White House hierarchy is tense. But Bush's hard-right hook; but they aren't all blind staff was warned, bluntly: "If you talk to a wrote speeches for Lyndon Johnson in the spcechwriters-don't-talk-aboutintraoffice Bush-loyalists. reporter, fine, but tell Governor Sununu '60s: Until, he says, "you realize it is impor- squabbles. Most scramble for the protective "There are issues (on which] I completely about tant not because you wrote "but because he shelter of-background to cover their tracks. disagree [with the administration]," confides Bush diminished the influence of his own said Then the thrill begins to wear off Reagan's speechwriting team, on the other one Bush speechwriter. "Does this mean- speechwriters to "put the rhetoric machine and you realize that you want "to write hand, had more internal rifts than the PLO we prostituting ourselves? No, don't in its place." of your even if it's not on has factions, and the former president's think so.' Sometimes, this speechwriter To begin with, the president filled his the Iront page of the New York Times. speechwriters felt no need to muffle their says, "I write as though it's almost fiction." speechwriting department with seasoned Sometimes you worked venomous feelings for former colleagues. Pause. Fiction in the sense of "created scribes gathered from various Cabinet secre- seven days a week and you felt you were the In a recent interview, one Reagan speech- words," the speechwriter qualifies. taries in the Reagan administration who most important person in the world," Wat- writer who asked that his name be withheld If Bush had made fealty to the "vision were not particularly well-known for memo- tenberg says."Other times you felt like the labeled a colleague "a drunk" and "a fail- thing" a litmus test for speechwriters, Tony rable oratory. Before being tapped by Bush, janitor was doing than you." ure." In the pages of the National Review, Snow's resumé wouldn't have made it past for example, Curt Smith worked for eight A-Bush speechwriter concurs. "I've gone Ken Bakshian ripped into fellow speechwrit- Sununu's desk. As an editorial writer at the years as a speechwriter for HUD's former throughrsix-[and]-five-day periods where I er Peggy Noonan for taking bows in public, Washington Times, Snow was openly critical secretary, "Silent" Sam Pierce. Mark Davis sleep four hours a night. I don't want to calling her a "prima donna." of the Bush administration. for former Republican National Committee make it out to be this great martyrdom, but Reagan speechwriters also leaked early "George Bush and his people came to head Frank Fahrenkopf Jr.; Dan McGroarty we do eat a lot of Domino's.' drafts of one another's speeches to the press Washington untarnished by dreaminess," for Secretaries of Defense Caspar Weinberg Clark Judge, who as a speechwriter under. and were known for taking authorship credit Snow wrote in the Times. "They skipped the and Frank Carlucci; Mark Lange for Labor Reagan pulled his share of all-nighters, says for fellow workers' words. idealistic phase and jumped directly into an Secretary Ann cLaughlin and Transporta- he saw his fiancé only when she brought him One of the "filched credits" Bakshian Imperial Presidency. There, gatekeepers tion Secretary Elizabeth Dole. dinner at the office. "It got to the point," he mentions is the "Everyday American Hero" control access to the leader of the Free He also relocated the speechwriters' of- says, "where the Secret Service guard didn't theme of Reagan's 1982 State of the Union. World. They seal off leaks and fresh air. fices. Reagan's team was comfortably en- check what was in the bag." Bakshian says he came up with the phrase, And in the president's case, they have creat- sconced in the southeast corner of the grand And yet, a life of Domino's, missed din- but says that it was credited, by a false leak, ed sort of a yuppie regency, complete with a Old Executive Office Building, coveted by ners, and 12-hour days is "almost a vacation to another speechwriter in William Safire's vigorous, intelligent, decent, and utterly re- GS-15s everywhere for the view of the White compared to the campaign," says Bush re- New York Times column. moved head of state." House. When Bush took office, he relegated searcher Bob Simon. "We're down from 80- The zealousness of Reagan's speechwriting speechwriters to the 17th-Street "ghetto" hour weeks to 55 hours." And almost no team came in part from their sense that they f Bush doesn't require his speechwriters side of the building. where they toil in ob- weekends. "The president gets his work had a mission, that they were running with to be steadfastly loyal to his politics, he scurity and shame. (Gregg Petersmeyer- done on the weekdays, we should be able to, the red-hot burning torch of Reaganism. does require them to do one thing: keep now champion of Bush's Thousand Points too," Simon states matter-of-factly. "For me it was wonderful,' says Judge. quiet One Bush speechwriter says that of Light" program-used campaign ties to Tony Snow says he regularly works "12-, "When I was on the president's staff we within the is frequent snag the speechwriters' old turf, says Bob CITY PAPERJUNE 1991 25 PUTTING WORDS IN THE PRESIDENT'S MOUTH Simon.) gave George Washington's farewell address fornia Rep. Dana Rohrabacher and John comment live after Bush gave his first-100- Bush also revoked the speechwriters' the once-over, and Daniel Webster begged Podhoretz (Reagan); and Patrick Buchannan days-in-office speech at the American News- prized White House mess privileges. No incoming President William Henry Harrison (Nixon and Reagan). paper Publishers Association Meeting in longer could the lowly scribes lunch among to trim his inaugural address (to no avail: It was under Nixon-a man with a "good Chicago. "I had the text of Bush's speech the powerful in the dining room where the Harrison delivered a two-hour speech-re- feel for the language" and "respect for the and read-along while Bush gave it." says president treads the Oval Office carpet one plete with references to the Romans-on a written word," says New York Times column- Hess. "It was a perfectly good speech, but floor up. For status-conscious speechwriters, frigid afternoon, and died of pneumonia ist William Safire, himself a Nixon speech- not when Bush finished with it." At the end access to the mess was a major, ego-mollify- within the month). It wasn't until Warren writer-that the speechwriting department of each paragraph, Bush had explained-what ing perk: "It's one of the first things people Harding dubbed Judson Welliver "literary came into its own. the was about; what-it was supposed ask when they find out you work at the executive secretary" that the modern era of "This was the heyday of presidential writ- to mean, thereby "wrecking any cadence White House," laments Simon. presidential speechwriting arrived. ing," says Safire, praise that, in his eyes, and lilt the speech might have had." Even if Bush was trying to make a point, But as late as the Eisenhower administra- only Franklin Roosevelt's administration Snow blames the speechwriters: "They why did he so dramatically belittle the peo- tion, speechwriters were still as much policy shares. Though Safire left before the Water- may be trying to write for Winston Church- ple who put words in his mouth? Steve advisers as wordsmiths. "Over time," says gate mess, it was the speechwriters of his ill, not George Bush." While Carter and Hess, a speechwriter for Dwight Eisenhow- Hess, "speechwriters were called upon to school who almost managed to transform Reagan actually spoke in sentences, "Bush er, suggests it's because they put words in his write more and more speeches not to ad- Nixon's last pathetic days into a noble strug- speaks in three- to five-second bursts with mouth. "I almost think [Bush] is embar- vise the president." gle: lots of breathing spaces," Snow says. "If you rassed that someone composed a speech for Then, as the media age dawned in the "Sometimes I have succeeded and some- don't insert them, he will." him," says Hess, venturing to psychoanalyze '50s, the president was called upon to make times I have failed," waxed Nixon in his But Hendrik Hertzberg, chief speechwriter the orator in chief. In his speeches, Hess frequent public appearances. The collected farewell address, "but always I have taken under Jimmy Carter and now editor of the says, Bush "has an almost apologetic tone." public statements of the presidents, which heart from what Theodore Roosevelt once New Republic, offers a different explanation. Upset as they might have been about their are bound in volumes in the Library of Con- said about the man in the arena, "whose face "Like Carter before him," says Hertzberg, diminished status, Bush's speechwriting gress, gauge the geometric progression of is marred by dust and sweat and blood, who "Bush believes that his real job is making crew still chafed at the early news stories in presidential elocution. The statements of the strives valiantly, who errs and comes short decisions," not making speeches. This isn't the New York Times that detailed their dis- first 24 U.S. presidents fit neatly into 10 again and again because there is no effort entirely problematic-it might even be re- content. The speechwriters blamed overeag- flaking volumes. The recorded public wis- without error and shortcoming. if he fails, freshing to have a president who doesn't use er reporters for the minor fracas it stirred in dom of Lyndon Johnson's first year in office at least fails while daring greatly. the presidency as a rehearsal for the lecture the White House alone takes up two volumes and totals nearly circuit. According to Hertzberg, Bush's ora- "The first six months were a horror be- 1,700 pages. In 1976, Gerald Ford was the cause there were only four of us," recalls one G eorge Bush couldn't muster that kind torical problem is that he lacks "a set of first to set the three-volume record for a sin- of elegance even while telling the clearly defined bedrock beliefs that you Bush speechwriter, "and there were $0 many gle year, with almost 3,000 pages. truth. It just isn't in him. Safire says could fall back on rhetorically." events piled on. We weren't returning re-) With the speech explosion came, inevita- that on his scale of presidential eloquence, And even if a sterling speech could some- porters' phone calls, and they got mad. bly, the speechwriters explosion. Eisenhow- Reagan's speeches rate an "average" and how emerge from a deliberately uninspired, They assumed that either we were aloof or er managed with two. Bush has six (with Bush's "a little below average-a little high- unmotivated team of bureaucratic stooges The story became two more on the way, according to Snow). er than Carter's." Though Bush may have under the command of the downgrading issue." The speechwriters have even established what Reagan speechwriter Tony Dolan de- -rudderless president, before it ever made it their own fraternity, named (appropriately scribes as a "craggy handsome face, a nice to Bush's craggy, handsome face and out his S eventy years ago, when politicians enough) the Judson Welliver Society: The reedy voice, appealing Upper New England cracking, quivering lips it would have been were still elected without throngs of list of members reads like a Who's Who in Yankee manner," those aren't enough to wrecked by the bewildering bureaucratic media consultants, pollsters, and Washington politics and journalism. To overcome his uncomely traits: "A rambler gauntlet through which nearly every presi- flacks, presidents actually wrote their own name a few: Clark Clifford (Harry Truman); and a digresser," another Reagan speech- dential speech must run. speeches. They would tap a close friend or Ted Sorenson (John F. Kennedy); Bill Moy- writer calls Bush. Typically, an early draft of an important trusted adviser for advice. Thomas Jefferson ers and Jack Valenti (Lyndon Johnson); Cali- In 1989, Hess was asked by C-SPAN to policy speech is "staffed" out to the 14 assis- PUTTING WORDS IN THE PRESIDENT'S MOUTH tants to the president, relevant Cabinet though, is when some junior policy staffer make it look like he does. He won't be able to be "in a unique position" in that he is members, and other administration bureau- tries to make himself look good by withhold- to turn Bush into Churchill, but already "under no orders to accept changes." Snow crats with a hand in the pot. At least 15 peo- ing paragraphs from an early draft of a there have been some noticeable changes in makes the decision to clear the final draft. ple will look over a relatively unimportant speech and then leaking the draft to the the president's oratory. This has caused some grumbling among speech-what Hertzberg refers to as "Rose press. After the speech is made, the policy In an emotional address in South Carolina the policy grunts. The Michigan speech was Garden rubbish"-and up to 50 will see jock gets credit for the additions. The after the Gulf War, Bush exclaimed, with heavily worked over in the staffing process, something as important as a State of the speechwriter looks like an idiot in the office unusual vigor, "By God, we have licked the Snow says. "People were concerned about Union. the next day, when the paper reports that Vietnam syndrome." the PC bit," but it staved because Snow had "If it's [a speech for] the U.S. Open," says "Such and such policy was not included in Bush's much lauded commencement locked Bush in on the idea during a meeting Snow, pointing to a draft of the speech he is earlier drafts." address earlier this month at the Univer- before a first draft of the speech was even working on, "most are not too concerned. If Winston says that at times the speechwrit- sity of Michigan is widely considered to begun. "I told him about the "Michigan it's a commencement address, then they ers and policy-makers are still battling it out be Snow's major debut as a speechwriter. Mandate' [a controversial speech code put care." "right there on the plane, sometimes in a Bush launched into a fiery attack on the into effect by university officials to curtail Each of the policy analysts, advisers, legal huddle" to bring it up to date. (References evils of "political correctness" on cam- 'hate' speech], and he agreed that he should "experts," and Cabinet members takes a to the Bangladesh disaster were inserted in a pus: talk about it." turn knifing the draft, imbuing it with his recent speech while the president was in the "Ironically, on the 200th anniversary of The Ann Arbor speech may have marked own personal charm, air, for example.) our Bill of Rights, we find free speech under Snow's debut, but perhaps the most surpris- The results-are disastrous. "Rhetoric be- "I remember a State of the Union I was assault throughout the Unites States, includ- ing single example of the difference between comes the reason, people focus on it," la- writing," says Hess. In the final stages of the ing on some college campuses," Bush said. the rhetoric of pre- and post-Snow Bush is ments a Bush speechwriter, "and some writing, "calls were coming through the "The notion of 'political correctness' has ig- his now famous speech two weeks ago be- beautiful prose is almost rendered oatmeal switchboard until 2 in the morning from nited controversy across the land. Although fore the National Southern Baptist Conven- because so many people have whacked at it Cabinet officers" with changes. Ultimately the movement arises from the laudable de- tion, in which Bush, who normally shies (The only-speeches that go directly-from that particular State of the Union went back sire to sweep away the debris of racism and away from emotional displays, brought the the-scribes-to-the-president are humorous to Eisenhower-a heavy-handed editor and hatred, it replaces old prejudices with new house down with his sticky-sweet admission ones. The speechwriters bring in four or five himself a speechwriter for General Mac- ones. It declares certain topics off-limits, that he cried on the night the air war in the of their funniest friends, sit around and Arthur-some 13 times. But even back in certain expressions off-limits, even certain Gulf began. make up jokes, and then pass on pages and Eisenhower's day, Hess says, "the lawyers gestures off-limits." [w]e were thinking about the those pages of yuks to the president for review. were most interested in qualifying each And last week Bush pounded the lectern young men and women overseas," Bush Snow says that his department maintains a. word." with his fist in another strident civil rights said. "And I had the tears start down the "joke file," and sometimes contracts-out to But unlike Eisenhower, Bush finds that speech at the Capitol Hill Hyatt Regency. cheeks, and our minister smiled back. And I free-lance comics.) formulating and articulating coherent ideas "I want a fair, strong anti-discrimination no longer worried how it looked to others." "The most difficult speeches," says a Bush just aren't his thing, as it were. bill that will guarantee worker's rights, With that, the president began to cry speechwriter, "tend to be those [where] "Truth be told," says Simon, acknowledg- women's rights, workplace rights, but will again. there's an internal schism about-the policy." ing people in the audience "is the most im- not create quotas!" And with that, Bush showed that speech- The speechwriter uses-an example to de- portant thing to the president. He gets pret- Bush's enhanced rhetoric may be due in writer magic can only go so far. Snow can scribe the "internecine warfare" between ty upset if we miss someone." Which means part to the enhanced power Snow has been make Bush's lips utter word formations far speechwriters and White House staff. Mid- that Bush's researchers spend a lot of time granted. He meets with Bush twice a week more eloquent, funny, biting, and witty than level bureaucrats have become adept at us- figuring out who'll be sitting in the front row to discuss things like speech strategy and the president ever could muster on his own. ing the speech-drafting process as a way to and how to pronounce their names. tone, and the importance of sticking to the He can instruct him when to pound his fist. sneak ideas to superiors without risking text. when to raise his voice, when to pause. But looking foolish. If the idea is a loser, it sim- ply gets crossed off the speech by the boss. E ven if Bush doesn't recognize the dif- And while Snow's predecessor Winston two weeks ago, the president of the United ference between, say, burning rhetoric says she had to work in the ham-handed States cried on every television set in Ameri- What really burns the speechwriters, and subtle irony, Tony Snow is out to changes of the policy-makers, Snow claims ca. How can a speechwriter top that? CP MARKETING IDEAS HOLDING THE BAG ON BANKS National Journal THE WEEKLY ON POLITICS AND GOVERNMENT JUNE 22, 1991/NO. 25 Pinching Public the Purse INSURANCE The squeeze on state and local governments is likely to continue for years WHITE HOUSE NOTEBOOK WITH NEW WHITE HOUSE WORDSMITHS S keletons of grandstands were still in Bush, often clumsy with language, "wise- accomplishments to the public, Sununu place along Constitution Avenue, ly" refrained from trying to rival Reagan acknowledged to a CNN interviewer on left from the celebration four days as a Great Communicator. More impor- June 13. "If it is our fault, we want to pick before of President Bush's geopolitical tant than oratorical flourishes, Windt up the slack." triumph in Kuwait, when throngs of lis- explained, is the ability to persuade, They've done so this spring in two teners came to the South Lawn of the which Bush displayed during the Persian ways. Counseled by Republican strate- White House on the evening of June 12 Gulf war. Rhetoric, he judged, "is not gists that the White House needed a spir- to glorify Bush's policy endeavors at central to George Bush's style of leader- ited chief speechwriter, Sununu found home. ship." one in Tony Snow, 36, editor of The Bush's remarks were earnestly deliv- But with an election around the corner, Washington Times's ideologically ardent ered and not uninteresting. He chided pressure is building on Bush to heat up editorial page. The White House also Congress for failing to enact his crime his rhetoric. On top of long-standing hired Dorrance Smith, 40, a respected and transportation bills within the 100 laments about Bush's speech making, ABC News producer who's a Bush family days he'd prescribed in the wake of the which crescendoed last fall after his tepid friend, as assistant to the President for Persian Gulf war. He also explicitly dis- prime-time speech on behalf of his bud- media affairs. Adding Smith to the three- tanced himself from his predecessor and get deal, Cabinet officials have com- some already overseeing White House political mentor. plained internally that the White House message-making (communications direc- In sketching his philosophy for facing hasn't made the best political use of tor David F. Demarest Jr., press secretary American social problems, Bush spurned Administration achievements. Marlin Fitzwater and events-planner Sig not only the traditionally Democratic Political sharpies wax nostalgic for Rogich) was believed to have been Bush's view that "bigger government was better 1988, when Bush's caustic attacks on his idea and was counted as evidence of his government" but also the faith in "the Democratic opponent on politically vol- displeasure with the status quo. genius of the free market" shown by Pres- canic subjects (such as prison furloughs A sharper edge has already emerged in ident Reagan. The latter brought "a and the Pledge of Allegiance) were Bush's speeches. In contrast with his decade of exceptional economic growth," deemed pivotal to his electoral success. bland commencement addresses of prior Bush said. "And yet, let's face it, many of Recent talk around Washington is that years, those he delivered this spring our streets are still not safe, our schools Bush will run for reelection next year on a touched on some hot topics-notably, job have lost their edge and millions-mil- platform of "Kuwait, quotas and quotas and "political correctness"-and lions-still trudge the path of poverty. crime"-reminiscent of Dwight D. Eisen- drew considerable public attention. There is more to be done, and the mar- hower's 1952 campaign cry of "Commu- "Important and contentious issues ketplace alone can't solve all our prob- nism, corruption and Korea." always have some political punch to lems." The White House seems to be moving them," Snow said in an interview. But what more is to be done, Bush that way. "I think there's been a lack of Snow plays down his ideological zeal in never said. His speech seemed to fall flat. communications" in conveying Bush's a White House that's run by a President A Bush friend scoffed that it might have been written for President Ford, a known ideological nebbish. It offered no propos- als to counter recent Democratic attacks on the gaps in his domestic agenda, espe- cially on health care. The handpicked audience, packed with people Bush had previously addressed or somehow hon- ored, was only occasionally moved to applaud. The prime-time but newsless event drew no live television coverage. John H. Sununu, Bush's chief of staff, told an ABC News interviewer on June 16 that the White House "deliberately" hadn't asked the networks to carry it, presum- ably for fear of being refused. But a senior Bush aide confessed surprise that Cable News Network, which usually isn't so choosy, joined in the benign neglect. Bush isn't ordinarily as bad as adver- tised in getting his points across to the public. His rhetoric isn't inspiring, but its style "works for him," said Theodore O. Windt, a University of Pittsburgh expert in presidential rhetoric. He thinks that 1578 NATIONAL JOURNAL 6/22/91 BURT SOLOMON WATCH FOR TOUGHER-TALKING BUSH devoted to pragmatism. "I'm not a Bush ad-libbed amid Snow-written look" at Bush's schedule, a participant screamer." he said. But Snow hopes to remarks in accusing his opponents on said, and consider which themes should pursue "an activist conservative agenda," civil rights of "want[ing] to grind me into be pursued at which events. reports an empathetic Administration the political dirt"-a statement that trou- So far, this gaggle of communicators colleague who figures speechwriters' bled even some Bush supporters. seem to be working smoothly. They speak importance in the White House will If Snow's selection was to remedy the highly of each other to outsiders. It helps, rise-though not as high as in Reagan's absence of poetry, former Nightline pro- officials say, that Smith seems laid-back day. ducer Smith's was intended to bolster the and unassuming-"a real pro," Rogich Unlike his predecessor. Chriss Win- prosaic side of White House outreach. said, with "a nice, easy working manner." ston. who was mainly an editor, Snow Smith, considered on the ascendancy, was Demarest and Smith worked closely on writes one or two speeches a week and is given a few specific tasks that no one had Bush's South Lawn speech, which Dema- more heavily involved in rewriting the much attended to. He is to raise Bush's rest wrote, and share the task of flogging rest. He is said to carry more weight in profile in the press beyond the Capital domestic issues. (Sununu assigned Smith inner councils and has helped shape the Beltway-a "fertile" field with a cam- to handle the campaign for a "fast track" subject matter of speeches. White House paign coming, a longtime Bush aide toward foreign trade with Mexico, while aides say it was Snow's idea for Bush to noted. He recently arranged for Bush to Demarest did the one on education.) On lambaste campus intolerance of offensive address a couple of geographically distant a given project, Demarest, Smith and speech-a conservative bugaboo-to but politically friendly audiences by Rogich may consult 10 times a day, a University of Michigan graduates last means of satellite TV. " He has met with well-placed official said. month. Such a speech "wouldn't have Cabinet public affairs directors who'd But in a White House proud of its col- come out of the White House speech- long felt ignored by the White House, legiality, this job-sharing carries risks. The writing shop in 1989 or 1990," said intending to orchestrate Administration- communications workload is "not quite a Republican consultant John Buckley, wide follow-through on whatever word zero-sum game, but it's pretty damn who's pleased to see Bush "willing to use the White House wants out. close," an official who shoulders some of rhetoric" to move public opinion. "With the right [communications] it said. Smith isn't likely to prove a rival to How far Bush will go isn't clear. strategy, you can really create a mountain Fitzwater, who has a well-defined turf- "George Bush is not a firebrand, so you out of what appears to be a molehill." the White House press-and generous are not going to get barn-burner speech- said an official who expects Smith to "fill access to Bush. But insiders suspect he es." Snow said. "Nobody will confuse him a gap" as a strategic thinker on the White for Jesse Jackson may collide with Demarest, who gave up That's not his per- House staff. Roughly once a week since a seventh of his staff to Smith, or with sonality." But Bush's screechiest rhetoric Smith's arrival, Sununu has chaired a Rogich. lately was his own doing. Addressing the series of communications planning meet- Divvying up communications duties National Federation of Independent ings in his office. For an hour or so, Sunu- among a batch of equals poses a risk to Business in Washington early this month. nu and seven senior aides take "a rolling Bush beyond tension on his staff: Dif- fused authority may also muddy the mes- sage-making. There's evidently "no cap- tain" on Bush's communications staff to supply a clear direction, a Bush friend said. "I get the impression that people are going off in different directions." But too sharp a message also carries political risks. For one thing, "a President runs a different kind of campaign than a candidate for President runs," Buckley mused. Should Bush revert to his 1988 tone, he may find it hard to switch back. as he did so abruptly on the night of his election. And unlike Reagan. Bush has found his political strength as President in unify- ing the electorate, not in dividing it. "This isn't a polarizing President." American Enterprise Institute for Public Policy Research polling expert Karlyn H. Keene noted, citing pollster Richard B. Wirth- lin's recent finding that the "gender gap" that has long plagued Republicans has markedly shrunk. The more Bush tries to sharpen his message. that is, the more he may jeopardize his political standing. NATIONAL JOURNAL 6/22/91 1579 2 April 2, 1992 New York Time A23 Essay WILLIAM SAFIRE Bush-Clinton Debate WASHINGTON Nixonian "Who lost Russia?" charge. e t President Bush and his likely Dem- Result: a tortured call to act re- ocratic challenger went back-to-back sponsibly but not to worry, it won't 1 on CNN yesterday, and Gov. Bill Clin- cost much. ton came out standing a little taller. Because this was the first time the Twenty minutes before a long- two men had interacted on television, scheduled foreign policy address by it's illuminating to compare their Governor Clinton, the President speeches and delivery. rushed on the air to pre-empt his 1. Substance of the proposal to help rival's call for aid to the republics of the broken-up union: Remarkably the former Soviet Union. alike in shape, though the Bush pack- "This isn't driven by election-year age seems more generous in dollars. pressures," Mr. Bush felt the need to Both want a capitalist corps, under different names. Upshot: a draw. explain, after his 1,400-word, hastily 2. Persuasive rhetoric: Clinton elo- slapped together and ill-rehearsed speech in the guise of a statement to a quently made the case for helping the news conference. Nobody watching Russians, Ukrainians and the rest; Bush didn't even try. his unseemly race against the opposi- Clinton saw the assistance "not as tion's deadline believed that. a bailout but as a bridge loan, much As if it gave him pain to read the as a family gets from the bank when words, the President announced "a it's buying a new house before selling substantial multilateral financial as- an old one." That's an oratorical de- sistance package to marshal vice used by Lincoln (comparing : roughly $18 billion in financial slavery to a snake in the bed with 1 support." He followed this grand ges- f children) and F.D.R. (comparing ture with an apologetic "There's not a lend-lease to handing a neighbor your lot of new money," Mr. Bush's own garden hose to put out a fire). A y version of "I didn't inhale." viewer could relate to Clinton's home- e Cut to Clinton on TV, who knew how ly metaphor much more easily than 1- to take advantage of White House to the stiff Bush bureaucratese about d a "comprehensive and integrated package of support." Challenger wins 3. Evocation of past leaders: Bush h plodded along with "It was my privi- first round. lege to work with Ronald Reagan on these broad programs. Clinton S. subtly recalled the Kennedy inaugu- ral with "America's challenge in this era is not to bear every burden, but to d all panic. "Now, prodded by Democrats tip the balance." And he threw in a in Congress, rebuked by Richard Nix- pointed phrase that should become L on and realizing that I have been part of his stump speech, deriding an ot raising this issue in the campaign Bush's "prudence without purpose." nd since December, the President is fi- 4. Focus: The President dealt with nally, even now as we meet here, one subject and could lay out the id putting forward a plan of assistance. specifics of action taken; this had an ur He delivered the coup with zest: advantage over Clinton, who had to ir- "I'd really like it if I could have as roam over a range of subjects. The 1e much influence on his domestic poli- challenger's worst idea: sending the re cy." President to Brazil's global-warming Zest was what the President orgy in June. The irony is that Bush se so lacked, because he was being pulled may feel forced by Clinton to go. Ip in two directions at the same time. 5. Delivery: Clinton's voice was n His political instinct told him to shy hoarse from campaigning and Bush's away from new foreign aid in an was not. But Clinton's attitude was of election year, lest the America-First- assertive while Bush's was defen- t ers punish him; besides, he still holds sive; the challenger looked up while ? it against Yeltsin for toppling Gorba- Bush looked down; and Clinton chev and breaking up that old Soviet looked as though he was enjoying his e gang of mine. speech, crafting it until the last min- 1 However, Mr. Bush's Presidential ute, while the President seemed irri- instinct told him to step up to the tated about having to read the com- urgent needs of the embryonic plicated mess just handed to him. democracies; not only would this Round One: The challenger. But save the U.S. money in the long it's a long bout, and the champ has run, but it would relieve him of the been in this ring before. 2 April 2, 1992 New York Time A23 Essay WILLIAM SAFIRE Bush-Clinton Debate e WASHINGTON Nixonian "Who lost Russia?" charge. 1 President Bush and his likely Dem- Result: a tortured call to act re- ocratic challenger went back-to-back sponsibly - but not to worry, it won't on CNN yesterday, and Gov. Bill Clin- cost much. ton came out standing a little taller. Because this was the first time the Twenty minutes before a long- two men had interacted on television, scheduled foreign policy address by it's illuminating to compare their Governor Clinton, the President speeches and delivery. rushed on the air to pre-empt his Substance of the proposal to help rival's call for aid to the republics of the broken-up union: Remarkably the former Soviet Union. alike in shape, though the Bush pack- "This isn't driven by election-year age seems more generous in dollars. pressures," Mr. Bush felt the need to Both want a capitalist corps, under explain, after his 400-word, hastily different names. Upshot: a draw. slapped together and ill-rehearsed 2. Persuasive rhetoric: Clinton elo- speech in the guise of a statement to a quently made the case for helping the news conference. Nobody watching Russians, Ukrainians and the rest; his unseemly race against the opposi- Bush didn't even try. tion's deadline believed that. Clinton saw the assistance "not as As if it gave him pain to read the a bailout but as a bridge loan, much words, the President announced "a as a family gets from the bank when substantial multilateral financial as- it's buying a new house before selling an old one." That's an oratorical de- sistance package to marshal : roughly $18 billion in financial vice used by Lincoln (comparing 1 support." He followed this grand ges- slavery to a snake in the bed with 1 f ture with an apologetic There's not a children) and F.D.R. (comparing 1 lot of new. money," Mr. Bush's own lend-lease to handing a neighbor your a y version of "I didn't inhale." garden hose to put out a fire). A 3 e viewer could relate to Clinton's home- ) Cut to Clinton on TV, who knew how 1- to take advantage of White House ly metaphor much more easily than d to the stiff Bush bureaucratese about is a comprehensive and integrated package of support." ? 1, Challenger wins Evocation of past leaders: Bush A h plodded along with "It was my privi- first round. lege to work with Ronald Reagan on 3. these broad programs. Clinton subtly recalled the Kennedy inaugu- ral with "America's challenge in this d era is not to bear every burden, but to all panic "Now, prodded by Democrats tip the balance." And he threw in a A i in Congress, rebuked by Richard Nix- pointed phrase that should become in on and realizing that I have been part of his stump speech, deriding T ot raising this issue in the campaign Bush's prudence without purpose. ad since December, the President is fi- 4. Focus: The President dealt with id nally, even now as we meet here, one subject and could lay out the ur putting forward a plan of assistance. specifics of action taken; this had àn He delivered the coup with zest: advantage over Clinton, who had to e "I'd really like it if I could have as roam over a range of subjects. The much influence on his domestic poli- challenger's worst idea: sending the re cy." President to Brazil's global-warming se Zest was what the President orgy in June. The irony is that Bush 30 lacked, because he was being pulled may feel forced by Clinton to go. Ip in two directions at the same time. 5. Delivery: Clinton's voice was n His political instinct told him to shy hoarse from campaigning and Bush's P of away from new foreign aid in an was not. But Clinton's attitude was election year, lest the America-First- assertive while Bush's was defen- t ers punish him; besides, he still holds sive; the challenger looked up while ? it against Yeltsin for toppling Gorba- Bush looked down; and Clinton e chev and breaking up that old Soviet looked as though he was enjoying his i gang of mine. speech, crafting it until the last min- However, Mr. Bush's Presidential ute, while the President seemed irri- instinct told him to step up to the tated about having to read the com- urgent needs of the embryonic plicated mess just handed to him. democracies; not only would this Round One: The challenger. But save the U.S. money in the long it's a long bout, and the champ has run, but it would relieve him of the been in this ring before. A22 THE NEW YORK TIMES NATIONAL WEDNESDAY, APRIL 1, 1992 The 1992 Campaign "The pool of Arkansas high school seniors taking the test has greatly ex- Candidate's Record panded," said Mike Gauldin, a Clinton Education: aide, "Only the best of our students took the test a decade ago. But now, in The Clinton Years Despite Improvements, the Schools good part because of Bill Clinton's push to get more kids to finish high school Clinton's terms as Governor of Arkansas and then go on to college, we've got even some marginal students taking In Arkansas Are Still Among Worst the test. So of course the average score RESOURCES has suffered." Testing experts do not question that Spending on public schools Average teacher salaries, analysis. But they also note that the per pupil, in thousands in thousands By B. DRUMMOND AYRES Jr. pool of high school seniors taking the Special to The New York Times Clinton as Governor school graduates who do not go on to test in other states has also expanded. college. $6 $35 And they point out that three of every LITTLE ROCK, Ark. - As he cam- 12 Years at Arkansas's Helm At home, those programs have often four Arkansas high school graduates paigns for President, Gov. Bill Clinton 5 UNITED 30 Second of five articles. faced major resistances from state must take remedial courses as college talks a great deal about the importance STATES legislators, taxpayers and even the freshmen, twice the national average. 25 of education, boasting that "the most 4 state's education establishment. But Since Mr. Clinton first became Gov- important thing" he has accomplished the Governor, with the help of his wife, 20 trated effort to advance education, ernor in 1979, Arkansas has managed in Arkansas has been improving the 3 has persistently pressed for action on schools. If elected, Mr. Clinton says, he even if progress is slow. to cut its high school dropout rate 15 the programs, with mixed results. would do the same for the nation. "We haven't gone for a hollow, flashy slightly. Now about 77 percent of all 2 Under Mr. Clinton's leadership, Ar- quick-fix," said Bill Bowen, Mr. Clin- To increase school spending, he had ninth graders go on to complete high 10 kansas has done much to improve its ton's chief of staff. "We've laid a foun- to raise the state's sales tax, which hits school, compared with 75 percent a 1 ARKANSAS poor people the hardest. He had been decade ago. That is better than the -5 schools - boosting expenditures, re- dation of good programs, and now it's a unable to persuade the Legislature to national average, which hovered 0 0 quiring competency testing for teach- matter of fine-tuning and waiting for raise other taxes. When he pushed around 72 percent over the period. ers, broadening curriculums, setting things to come to fruition." '79-'80 84-85 '89-'90 '79-'80 '84-'85 '89-'90 new academic standards, slowing the through his proposal to test teachers The improvement in that statistic Mr. Clinton's critics contend that dropout rate and encouraging greater much fine-tuning remains. They say for competency, some retired and resulted in good part, educators say, some quit rather than submit. One had because Mr. Clinton imposed a regula- RESULTS college attendance. The effort resulted the state, one of the least taxed in the in part from a court order that in- nation, must make a greater commit- just been named "Arkansas Teacher of tion that has proved effective in a num- ment to education and spend even the Year." ber of other states, too. Teen-agers who Percentage of students Percentage of adults over 25 structed the state to improve its educa- tion system. more on schools if it is ever to rise from Consolidation Hits Roadblock do not remain in school through gradu- graduating from high school who have completed four years ation lose their driver's licenses. The But even with all Mr. Clinton has the bottom ranks of education excel- who enroll in college of college education Mr. Clinton's effort to make schools Governor says he would try the same done in 12 years as Governor, the Ar- lence. more effective and efficient by consoli- thing nationally if he were elected 75% 25% kansas school system, ranked among "The bottom line is that Arkansas's dating the unusually large number of President. the worst in the nation when Mr. Clin- standing in most measurements of edu- school districts has run head-on into More Arkansas high school gradu- 60 cation quality was on the bottom when 20 ton first took office 12 years go, still local pride and political power, which ates are going to college. In 1979, only lags near the bottom in most national brought the effort to a near standstill. about one of every three high school ratings. And state officials acknowl- Arkansas had more than 350 school 45 15 graduates went to college. More point- edge that real improvement is many Clinton has kept districts 10 years ago and still has edly, only half of all high school vale- years away. almost that number. Many districts dictorians sought further education. 30 10 And so Governor Clinton's aides state education have fewer than 300 students. When Today, half of all Arkansas high acknowedge that there is no guarantee Mr. Clinton first moved into the Gover- school graduates go on to college. That 15 5 that his ideas would produce positive nor's office, Arkansas's education from falling is about equal to the national average. results nationally. rankings were not just at the bottom. Many use a college scholarship pro- One study, produced at the University 0 0 Since Mr. Clinton first took office in gram instituted by Mr. Clinton. further behind. of Florida in 1978, concluded that Ar- '80 '85 '90 1970 1980 1989 1979, more Arkansans have gone on In 1979, fewer than 10 percent of all from high school to college. At the kansas schools were the very worst in Arkansas residents held college de- Figures for missing years not available. same time, college-admittance test the nation. grees, while the national average was scores have fallen rather than risen. Clinton came in, and it's still on the In the absence of a new study, it is about 15 percent. Today, Arkansas has Sources: Federal and state education departments; National Education Association The state still ranks near the bottom in teachers' pay, 46th among the 50 states bottom," said Sheffield Nelson, Mr. hard to say whether Arkansas schools achieved the 15 percent level, but at the Clinton's Republican opponent in the may still be considered the worst in the same time the national figure has risen The New York Times and the District of Columbia. It ranks 1990 governor's race. "He's the one nation. What is clear is that despite to more than 21 percent. 48th in spending for each pupil. considerable improvement in the Similarly, just as Mr. Clinton was its budget goes to education, compared who brags he's accomplished so much Association, which represents the By most accounts Mr. Clinton's ef- schools under Mr. Clinton's guidance, preparing to take over as Governor, with a national average of about 35 state's teachers. over the years. Well, if he can't do any forts seem to have simply kept Arkan- better than that nationally, God help the state still ranks near the bottom in Arkansas ranked 40th in per capita percent. After Mr. Clinton raised taxes to sas, one of the nation's poorest states, us." many of the charts that measure edu- spending for its colleges and universi- In 1977, the state stood 38th in the increase teachers' pay last year, the from falling even farther behind. While As Governor, Mr. Clinton has con- cation quality nationally. For example, ties. Today, it has slipped back a notch, percentage of each Arkansas resi- association put up a brass plaque in the he has been pushing for better schools tended that Arkansas will never lift in 1979 the cummulative test scores of to 41st. dent's personal income that went for capital, thanking the Governor for his in his own state, many other governors, itself from poverty without an im- Arkansas students who took the Amer- While many education statistical schooling, at 4.3 percent, compared contributions to education. particularly in neighboring southern proved school system. Now, as a candi- ica College Test, one popular college- measures have stagnated during the with a national average of 4.6 percent. "We've fought him tooth and nail on states, have also been improving their admittance test, ranked 20th of 28 Clinton years, some other measures Arkansas now ranks 24th in that cate- date for President, he is asserting that things like teacher testing," Mr. John schools. the United States cannot continue to be states that use the test. The state are more encouraging. gory, at 4.1 percent, compared with a son says now. "But overall schools are Mr. Clinton and his supporters do not a global power if it does not improve its ranked 50th of 50 states and the Dis- In 1979, half of the state's high national average of 3.9 percent. a lot better now than they were before deny that Arkansas continues to lag in schools. trict of Columbia in expenditure for schools did not offer physics courses. "At a time when some school. sys- Bill Clinton arrived." many important areas. But they con- If elected President, he says, he each pupil in elementary and second- Only two-thirds offered chemistry tems have cut back because of enroll- tend that the Clinton administration's would put into place some of the pro- ary schools. It ranked 51st in teacher courses. Many offered no foreign lan- ment decline and other factors, we effort has laid the groundwork for fu- grams and innovations he has empha- salaries. guages. Today, all schools offer physics haven't slacked off a bit," said Burton Next: Arkansas and business. ture improvement by focusing a spot- sized in Arkansas. Many were first Today, the latest available statistics and chemisty courses, as well as for- Elliott, the director of the Arkansas light on an issue that was seldom front suggested by an education study com- show that Arkansas has fallen to 25th eign languages. Education Department. and center in this state before the mittee that he appointed his wife, Hilla- of the 28 states that administer one And then there are two other impor- Governor took office. ry, to head. popular college test examination. It tant measures that show how much Teachers Back Overall Effort They also point out that Arkansas, In particular, he mentions increas- has inched up to 48th in per-pupil ex- emphasis a state puts on education. While Mr. Clinton has often been at despite its poverty and multitude of ing state financing for Head Start, set- penditures and 46th in teacher pay. One shows what percentage of the odds with the Arkansas Legislature, competing needs, now commits a larg- ting academic achievement standards, Arkansas officials say they are not overall state budget goes to schools, the taxpayers and even the teachers er portion of its budget to education seeking new ways to help college stu- disturbed by the decline in test scores, and the other shows what percent of over how to improve the state's than all but two other states, suggest- dents pay education costs and develop- which some educators consider a ma- the average Arkansas resident's per- schools, increasingly he has been hav- ing that the state is making a concen- ing job-training programs for high jor measure of educational attainment. sonal income goes to education. These ing his way. In 1991, for example, law- figures go beyond gross dollars and makers agreed to set up a trust fund measure instead the overall emphasis that will be used to expand early child- a state puts on education. hood education programs like Head In 1977, Arkansas ranked 19th in the Start. That is an area of education Mr. percentage of its total state and local Clinton considers critical. budget going to schooling, just over 40 percent, compared with a national av- "We've had the best of times and the erage of about 38 percent. Now the worst of times with Bill Clinton, when it state ranks third; almost 42 percent of comes to schools," said Sid Johnson, president of the Arkansas Education Houston school system: Kids must be feoted: a better fest more comprehensive test. A22 THE WALL STREET JOURNAL TUESDAY, NOVEMBER 19, 1991 POLITICS & POLICY Bush, Sensing Only a Public Relations Problem, Vexed Voters Percentage of voters who disapprove of President Bush's handling of the economy Will Delay Any New Economic Plans Until 1992 80% 70 By ALAN MURRAY interest rates last week demonstrated the 1990, the White House Council of Economic And JOHN HARWOOD dangers of even suggesting measures to Advisers wrote that attempts to influence 60 Staff Reporters of THE WALL STREET JOURNAL help the economy at the end of a congres- the economy in the short run "can be detri- WASHINGTON-F the Bush adminis- sional session. mental to good economic performance." 50 tration, like the old Brooklyn Dodgers, the White House officials have continued to But the president's critics say he's plan is, "Wait until next year." attack a Senate bill to limit credit-card failed to make even that case convinc- 40 Despite mounting bipartisan criticism rates as preposterous, even though the leg- ingly. He would do better, says Mr. Keene, for its failure to address the nation's eco- if he were able to say with conviction that 30 Econ islation came a day after President Bush nomic ills, the administration has decided himself suggested that rates should go anything we do will screw it up, and by its immediate problem is largely one of 20 lower. Mr. Bush said, "That never oc- God we are on the right course and nobody S. 0 N D J F M A M J J A S 0 public relations, and will put off any new curred to me that somebody was going to is going to change It, economic, policy. proposals untill next 1990 1991 introduce legislation I didn't think Instead, the president's wavering has year. about it then: Maybe I should have. created the impression that he doesn't "I think I've got to do better making THE WALL STREET JOURNAL/NBC NEWS POLL At a lunch, Budget Director Richard know what to do. Presidential scholar Fred clear what the message. is," President Darman said "the end-of-session psychol- Bush told a small group of reporters. Greenstein says the president appears to gress. ogy is frequently very poor in Congress." have been caught by a hemor- Mr. Darman said his differences with White House officials say their intention is He argued that the State of the Union ad- to lie low until Congress leaves town, then rhaging of domestic support." Mr. Green- Mr. Kemp were merely "tactical." And, he dress, which will be given in late January stein asserts that while Mr. Bush sounded launch a communications offensive that said of Mr. Kemp: "On balance, he has or early February, is a better time to set a will explain the president's position and at- very confident during the Persian Gulf been a net plus publicly for the administra- strong economic agenda. "In the general tack congressional Democrats. war, when discussing the economy re- tion, so I would not want to be critical of public's mind there's a ritual, a rhythm of Vice President Dan Quayle gave re- cently he has lapsed into the shrill, frag- him.' renewal to the State of the Union," he mented syntax "that betray this man when Vice President Quayle, meanwhile, porters a preview of the rhetoric to come said. he's not comfortable with himself. plans to take his message on the road this by singling out Senate Majority Leader George Mitchell of Maine for blocking con- Mr. Darman also argued that the prob- Worry Over "Caving In' week with a speech In Tennessee, and an- sideration of the capital gains tax cut in lem was largely one of public relations. "I other in Chicago later In the month. That Even If the president were to put for- think that we have not yet done as good a message, he says, is that a capital-gains 1989. "You ought to call it the George ward an economic rescue plan now, he Mitchell recession, and I'm going to keep job as we should do in communicating ef- tax cut is "a silver bullet" that will "cre- would likely be attacked for merely caving saying It over and over again because It's fectively what it is we're really for and ate jobs and put America back to work." in to political pressure-as he has ap- why it really does make sense,' he said. By blocking the administration's proposal true," Mr. Quayle said. "Those that have peared to do recently on other issues, in- "We're aware of the problem and we're on grounds of fairness, Mr. Quayle adds, stymied our program are going to have to cluding unemployment compensation, the be held accountable." working on it." Democratic leaders in Congress are "will- civil rights bill and the cancellation of his ing to risk keeping people poor because The White House strategy, however, is Right-Wing Criticism trip to Asia. "Whatever he does now is go- one person may get rich." unlikely to satisfy many Republicans, who Much of the most Intense criticism has ing to be seen as reactive," says GOP poll- "Congress has basically told us they're believe the president is endangering his come from the right wing of the presi- ster Bill McInturff. not going to pass the president's growth own chances of re-election by ignoring the dent's own party. Dan Mitchell, an eco- The president's indecisiveness has fos- package," Mr. Quayle says. "We've basi- economy's problems. "The notion of sitting nomic analyst at the conservative Heritage tered public bickering among his own ad- cally said, 'OK there's no use staying back and doing nothing while the voters Foundation, dismisses White House eco- visers. Most notably, Housing and Urban around. You go home, listen to the Ameri- get angrier and angrier about a sagging nomic policy as "taxes, regulation and Development Secretary Jack Kemp has can people, and be prepared to work when economy is simply not going to play,' said easy money," referring to the 1990 deficit said in interviews and on television that he you get back in January.' GOP Rep. Vin Weber of Minnesota. And reduction agreement, environmental legis- believes the president should immediately -Michel McQueen contributed to this conservative activist David Keene argues lation and Mr. Bush's calls for lower inter- begin pushing a tax cut through Con- article. that the president "does not seem to have est rates. "Carternomics doesn't work any a real sense of where he wants to go." better for George Bush than it did for Credit-Card Brouhaha Jimmy Carter," Mr. Mitchell says. The decision to do nothing until next- The president's top economic advisers year was reinforced at a meeting of the have argued for some time that the admin- president's economic advisers Friday. At istration shouldn't try to fine-tune the econ- the meeting, several presidential advisers omy, and instead should focus on long- argued that the brouhaha over credit-card term growth. As long ago as February Am BUSH HAS NO PLANS FOR MAJOR EFFORTS TO REVIVE ECONOMY SEES EVIDENCE OF GROWTH President Also Says in Interview He Feels No Urgency to Pick His Re-election Team By MICHAEL WINES Special to The New York Times WASHINGTON, Nov. 18 - President Bush said today that he believed that the American economy was basically sound and that he planned no major new programs to stimulate growth, but S = he acknowledged having trouble con- vincing the public that his policies were adequate. Amid evidence that the continued economic sluggishness is already throwing his re-election campaign off balance, Mr. Bush called reporters to his office on short notice to strike a confident note about the country and his plans for a second term. He said he felt no urgency to have a full campaign team in place, but he nonetheless said he might soon an- nounce a top echelon of re-election offi- cials Allaying Fears Just days after the stock market suffered its fifth-worst day in history, Mr. Bush took the opportunity to try to allay the fears of some supporters that the Democrats are using the poor econ- omy to seize control of the 1992 election agenda. He said that neither he nor most top economists believed that the : nation would slide back into a full- : fledged recession next year "You see, there's some fairly good 1 fundamentals getting out there," he said. "Inflation is down: Interest rates e are down. Personal debt is down. In- / ventories are down. Quality - competi- è tiveness - quality is going in the right , direction, up; and exports are up: So it's not like we're dealing with a totally bad $ economy [ "I'm not basing any plans on the ; economy getting worse," he said. Seeking a Compelling Message ; Today's session with reporters in the e Oval Office, like Mr. Bush's news con- 1 ference before he left for a meeting of the North Atlantic Treaty Organization im Rome the morning after Election e Day, seemed intended to get the Presi- dent off the defensive, but ended up reinforcing the impression that he is struggling to find a compelling cam- ) paign message. Rather than holding a formal news conference today, the White House in- B10 THE NEW YORK TIMES NATIONAL TUESDAY, NOVEMBER 19, 1991 Bush Sees No Need for Moves to Revive Economy I' Continued From Page Al The President tude had been "the right approach" vited six correspondents recently as- and that the President should not, and signed to the White House to meet with Mr. Bush. concedes delivery is not competent to, persuade stock traders to push stock prices upward or Asked why polls indicate that many downward. The stock market gained Americans believe that the country is problems for his 29.52 points today. "I've tried as President to stay out of sheaded in the wrong direction, he re- message. that," he said. "Perhaps what's hap- plied: "I think I've got to do better in pening in the market today vindicates making clear what the message is, and that; I don't know. But let the market x1 think I can do better. But I think the unrelenting bad economic news has sort that out." 'there's so much noise out there that drowned him out. But the President defended his earli- I've got to figure out how to make It Today's Oval Office interview came er efforts to persuade banks to lower clearer that we are for the things that I after a difficult week in which factory their credit card rates, a move some have advocated that would help." prices rose and automobile and retail experts have said is as likely to hurt Mr. Bush said he felt that no "radi- sales fell. In speeches, Mr. Bush first the economy as help it; since lower "cally different approaches" were need- called on banks to reduce interest rates rates would encourage financially ied to promote further growth beyond on credit cards voluntarily, apparently pressed consumers, to take on : still his existing six-point legislative pro- hoping to touch a chord with middle- more debt. gram, which includes a proposal to cut class voters. Then, some Republicans Not 'Interfering In the Market' the tax rate for capital gains, legisla- in Congress led a move to enact man- tion to overhaul the banking system datory ceilings on credit card rates, Encouraging a decline in interest, he and a highway bill that sponsors say panicking banks that rely on interest said, is not "interfering in the market" swould create thousands of jobs. from credit cards to remain profitable. but something the White House regu- That, in turn, may have helped spur larly does in statements aimed at thei Paul Hosefros/The New York Times Some parts of that package, like the highway bill, appear headed for pas- a 120-point drop in the stock market on Federal Reserve and other institutions President Bush said he is having sage. Others, like the proposed cut in Friday and initiated another cycle of that influence such rates. trouble persuading the public that the capital gains tax, have been stalled downbeat predictions about economic Asked whether he believed it would in Congress for years and show few be good for the economy if Americans his policies are adequate. prospects. signs of moving toward passage. Mr. Bush dismissed the steep drop in made more purchases on credit, Mr. In political speeches around the the stock market last week in a phrase Bush appeared to respond with a quali- and from within his own party's most country In recent weeks, the President fied yes. conservative wing. on Saturday, telling reporters who in- has responded to Democratic attacks terrupted his round of golf: "We'll see "That should be a decision made by Friends of Patrick J. Buchanan, the by accusing Congress of thwarting his what happens Monday. No reason to individuals," he said. "But frankly, I'd conservative television commentator domestic legislation. That strategy has like to see the cash registers ring at and writer, have said he may enter the get all concerned.' Hong worked for Mr. Bush and his pre- Christmastime. It would be very good Republican primary against Mr. Bush, Today, noting that the stock market decessor, Ronald Reagan, but lately had headed back up, he said that atti- for the economy." and David Duke, the former Ku Klux The President was reluctant to say Klan leader who lost decisively in Loui- what else he might propose to help the siana's race for governor on Saturday, economy or when he might propose it, said today that he was exploring the except that he would wait until after possibility of challenging the Presi- Congress's scheduled adjournment on dent. Friday to announce any new legislative Mr. Bush acknowledged that 1992 Recruitment Advertisers programs. was shaping up as a potentially bad That, he said, would remove Con- year for incumbents, based on the anti- The New York Times gress from the scene, enabling the Ad- government message that most ana- ministration to "package what I'm lysts saw in this month's elections in It's the place to be seen! talking about in a way that people will Pennsylvania, New Jersey, Virginia Call (212) 556-7226 see it loud and clear and understand it and elsewhere. and, hopefully, support me more. After nearly 11 years in the White 'A Certain Confidence' House, he said he has some concern Times that the voters this year may start to The New York On his own prospects for re-election, view him as an incumbent marked for the President said that he felt "a cer- defeat. "But I think I can handle it," he tain confidence about it, about the out- said. "I also note at the same time that THURSDAY. FEBRUARY YORK COMI come" of the 1992 race, but that he was people seem to suggest that Congress taking seriously the emerging signs of is more to blame than the President challenges from both the Democrats though." Foreign Affairs thinking of their bosses. LESLIE H. GELB Like Mr. Bush. Mr. Baker has his own inner trio: Robert Zoellick, the Under Secretary of State for Eco- Mr. Bush's nomic Affairs; Dennis Ross, Director scribed as technocrats with certain of the Policy Planning Staff, and Mar- leanings - with the exception of Mr. garet Tutwiler, the Assistant Secre- Wolfowitz, who is well established in tary for Public Affairs. All three Three conservative foreign policy circles. worked closely with Mr. Baker in the Mr. O'Keefe and Mr. Williams (also Reagan Administration before he Mr.: Addington) are more political took them to State. operatives than policy advisers, and Trios Mr. Zoellick, 38, runs foreign eco- their politics run to a moderate-con- nomic policy, but he also fills what servative Republicanism. Mr. Ross had been two other separate top jobs and Mr. Zoellick play the role of - Gounselor and chief of staff. Every grand strategists, and their strate- Never since World War II have so piece of paper going to and from Mr. gies have a moderate-liberal cast. few had so much control over the Baker passes his desk. Mr. Ross, 43, None of the inner aides carry the is the key policy maker for East-West making of American foreign and de- baggage of a personal policy bibliog- relations and the Middle East. Ms. fense policy. And though the profes- raphy, and that has proved of enor- sionals in the State and Defense De- Tutwiler, 40, is the political confi- mous advantage. Most key officials in dante. partments grumble about being ex- recent Administrations, like Richard Mr. Cheney also has his trio: Paul cluded, never in the last 40 years has Perle and Richard Burt under Ronald the national security bureaucracy Wolfowitz, the Under Secretary for Reagan, took to the pen to offer policy Policy; Pete Williams, the Assistant known such harmony. ideas and slay opponents - which The obvious part of this story is the Secretary for Public Affairs, and made them constant targets them- passing of most throat-cutting cold Sean O'Keefe, the Comptroller. selves once in office. The new crowd (Some might also include David Ad- war. issues and Mr. Bush's skill in came to power without a track record and without enemies. getting his trio of senior aides - dington, 34, the Cheney special assist- ant and gatekeeper.) Secretary of State James Baker, De- What the two trios did bring with fense Secretary Dick Cheney and Mr. Wolfowitz, 47 and the only them, as did their bosses, was a dis- member of the inner circle not tied to Brent Scowcroft, the national securi- trust of the bureaucracy. Yes, they ty adviser - to work together without Mr. Cheney's past, is the big-think include senior departmental officials man for issues like the Persian Gulf the legendary bloodletting that devas- on certain subjects. But for the most war and arms control. Mr. Williams, tated their predecessors. part' they meet with their bosses 39, sits in on most discussions. Mr. But a largely uncommented-upon alone and tell their colleagues only O'Keefe, 35, oversees defense pro- what they want them to know. and unusual part of the story has to do grams and spending - after Gen. The military and Foreign Service with the inner teams assembled by Colin Powell, the Chairman of the Mr. Baker and Mr. Cheney. These new professionals are not happy with this Joint Chiefs, and the military serv- second-tier officials who receive little lot.. They used to rebel when given publicity are young, generally without ices make their proposals. such. treatment by allying with Mr. Cheney and his trio are even friendly legislators and leaking to the prior experience in top departmental jobs, of diverse ideological back- more fierce than the Baker crowd in press. Now the professionals quietly keeping other agencies out of their march along because, much to their grounds and almost totally untainted business. Even the White House surprise, they like and respect the by Ivy League educations. They, along largely leaves the Pentagon alone. Bush Administration policies. Not a with several key National Security And:Dick Cheney tends to share few- bad accomplishment for Mr. Bush Council staffers, wield unprecedented er White House secrets with his aides and his trio and their trios. power inside their organizations. And than Mr. Baker does with his trio. they alone are Drivv to the innermost All these inner aides can be de- PAGE 20 OF 33 initiative were true believers devot- CONNECTICUT eir spare hours to a cause they held PRIMARY 1-800 They had a right to expect that their would not be shunted into bureau- or legal limbo. tobacco-tax supporters find them- in a special bind. They'd like to put ative on November's ballot, but can- asonably ask their troops to begin VOTERS ing signatures so long as the Su- Court could rule in their favor on the petitions and thrust that initiative is year's ballot. Hence they sit on ands, hoping the court will deign to efore it's too late for a fresh cam- "HAVE FUN, DEAR. I TRUST YOU'RE SEEING THAT NICE OR has been punished with a differ- SOUTHERN BOY FROM ARKANSAS AGAIN, TONIGHT?' t of water torture, with no end to it it. Douglas Bruce, the Colorado tax-limitation activist, submitted ENVIRO VIEWPOINT IS for two initiatives last November. ary of State Natalie Meyer threw out third of the signatures three weeks - tomorrow we'll discuss the appall- The newest name for an old ails of this process - forcing Bruce allies to pore over voter lists trying e the validity of enough names to shakedown: 'Earth Summit' eir proposals. e case of a tax-limitation measure, } partisans succeeded in finding n Michigan, scientists have discovered a them to do it. Rich nations will raise the state errors to preserve their 10,000-year-old fungus, weighing as money by taxing their citizens for energy nent for the ballot. But the fate of much as a whale, 30 acres large, hidden use. er measure remains in doubt. Bruce under the ground, with only pretty, little It is sad to see the U.N. go down the rip- cohort simply ran out of time before mushrooms poking above the surface. off road again, using environmentalism as uld complete a thorough review of In New York, at the the mushroom of choice. The environment 1 signatures. Only the timely inter- United Nations, another is one realm where some global regulation of a judge can probably save their huge, old and hidden fun- makes some theoretical sense. e now. gus has been vegetating, What to do? Rethink from scratch. The e will emphasize during the next two but the mushrooms are intellectual basis for the Earth Summit runs ie 1989 law throws petitioners into threatening to sprout big- counter to what the human species has Il battle when confronting hostile or ger and uglier. Prepara- learned recently. This: Centrally directed tate officials. The law assumes, of tions have been going on economies don't work, and dependency that the secretary of state will be for two years for "The harms the people it is supposed to help. hostile nor petty, and there is evi- Earth Summit," a spec- Thus, the communist centralized econo- that Meyer's office has indeed Ben tacular U.N. conference mies yielded poverty and pollution. Govern- from the past few months and Wattenberg scheduled for Rio de Ja- ment-to-government foreign aid mostly to clean up its act. But so long as neiro in June. helped scruffy tyrants. Yet the ES agenda ential exists for similar abuses down A domestic political tends to sanctify both ideas. d, the law remains an affront to fight about it is already under way. Environ- There is a better way. For we have and to the Colorado Constitution. It mentalists want President Bush to attend learned something positive as well: Liberty nore than the minor tune-up now the ES gala and announce that it's a grand works. Free markets and free politics yield idea. plated by the General Assembly. It prosperity. Only free countries are rich; be junked. But it isn't. It's an old hidden, U.N. only rich countries can pay the price of -sday: How the secretary of fungus, painted green. In earlier times the environmental cleanliness. office mishandled the two TA- U.N. mushrooms were called, among other So President Bush should not go to Rio itiatives. things, "The New International Economic just to give the poor nations and the envi- Order," "The Law of the Sea" and "The ronmentalists a condescending pat on the Brundtlandt Report." But the theme is head for a bad idea. Ideas have conse- and vase always the same: The U.N. gets power, the quences. Legitimizing this discredited phi- Third World gets money. losophy would yield a world both poor and The generic argument has gone this way: polluted. glass, the Portland vase. None of Poor nations are poor because rich nations There is one other strategy. The presi- previous interpretations of the enig- are rich. Rich nations should pay poor dent could go to Rio and tell the truth. cenes on the vase has won general nations reparations. The transfer should Which would go something like this: nce. Skalsky intricately ties all the proceed under a cloak of crisis ("the sea," "Friends, there is no free lunch. There is and symbols to themes, and a par- "the environment"). The terms of transfer no payoff in panhandling. Green beggar work, of the poet Catullus. should be centrally regulated by U.N. bu- socialism is not the wave of the future. irst, scholarly publishers wanted reaucrats. There are no magic mushrooms, only the f it. The happy ending is that The more definite ES idea, still mostly magic of the market, which works because 's theory finally won a prestigious hidden beneath mountains of platitudinous it comes from liberty, both political and on, and the journal Arion will fea- and weasel-worded documents, goes this economic. It can cure both poverty and article in May. The modest Skalsky way: We need general environmental clean- pollution. If you're interested, we in Ameri- nts to get back to his books, but we up and, particularly, emissions control to ca will try to help. If the U.N. is interested, ith satisfaction, that his, fortune is deal with "global warming." Poor nations let's all plan a new summit, for a new world, are too poor to do it. Rich nations must pay order, EUROPE Soviet Union the nationalists earlier in an effort to calm nior party men in last month's election, Before the flood things down. Calling in the troops on April have called for action to regain control. 9th was a clear over-reaction. Throughout the Baltic republics, for the At the other extreme is the Estonian first time since glasnost began, individual party, which decided last year that, since it party people are being warned-sometimes a week in the could not beat the mass popular-front move- by their own leaders, sometimes by Mos- Tbilisi, to look into ment pushing for greater autonomy, it had cow-that they must choose between the the clash on April 9th between troops and better join it. As a result, Estonia's Commu- nationalist cause and the Communist one. nationalist demonstrators which killed 20 nists fared better than comrades in other re- people, the Soviet foreign minister, Mr Ed- publics in last month's election for the new Warning: storms ahead ward Shevardnadze, had some hard words national parliament. Yet twice in recent for the republic's Communist party. It was, Across the country, alarm bells are ringing. months Pravda has warned the Estonian A new militia is being created in Latvia, like he said, hard to explain why Communists party that calls for independence and the the new riot squads in Moscow and Lenin- should talk to the people "from behind like, put out by the popular front (to which grad. Penalties for undermining the state or tanks and armoured transports". Increas- many individual Communists now belong), fanning nationalism have been stiffened. ingly, Communists around the Soviet are getting out of hand. Indeed, Estonia Union are doing just that. And plenty of worried letters have been ap- looks set for its second defiance of Moscow pearing in the military press. This sort of In the week that followed the Tbilisi in under six months over new laws on pri- thing has happened before, when national- troubles, troops and tanks could be spotted vate property, immigration controls to keep ism has become a worry. This time it is dif- on the city streets of at least six of the Soviet out unwanted Russians, and financial mea- ferent. Nationalist groups are ignoring the Union's 14 non-Russian republics. Their sures to protect living standards in the re- warnings. Especially in the Baltic republics, tasks ranged from brief cameo appearances public. Latvia's parliament is about to fol- people seem to have lost their fear of step- in Latvia and Estonia in the Baltic region, low suit. through curfew duties in Georgia, Armenia ping out of line. That can be a dangerous Seen from Moscow, the enthusiasm sort of self-confidence. and Azerbaijan (the site of nationalist unrest with which some party members in the Bal- They calculate that Mr Gorbachev can- last year that claimed nearly 100 lives). In tic republics have espoused the nationalist not impose a crackdown to "restore order" Tashkent, in the Central Asian republic of cause is at best unseemly. At worst it threat- Uzbekistan, troops were reported to be on without undermining the whole process of ens to split the Communist party, which so reform. Mr Gorbachev has flatly ruled out the streets in force on April 10th and 11th far, along with the army, has been the chief the re-drawing of the boundaries between after a large nationalist gathering. Is the integrating institution in Soviet society. republics to settle local grievances. But he Communist party losing its grip? In February the Lithuanian party boss, has otherwise tried to sound conciliatory to- Not yet. By April 17th Mr Shevard- Mr Algirdas Brazauskas, told a meeting of nadze, himself a Georgian and a former boss wards the different nationalist groups. He his Central Committee that the republic recognises that the old policy of often brutal of the republic, had struck a deal that step was only a step away from the imposition of by step withdrew the curfew and troops in Russification fostered resentment. He hopes "a special form of rule", better known as that the airing of grievances will make them Tbilisi in return for assurances that people martial law. Mr Brazauskas has tried to stay less dangerous. In particular, he hopes that would return to work. The Georgian party on good terms with Lithuania's popular chief accepted responsibility for the violence the problem can be contained until a special front, Sajudis (Unity), but some of his col- Central Committee meeting sorts out a na- in the city and has been replaced, along with leagues, now smarting from the rebuff to se- tionalities policy in the summer. But the the republic's prime minister and president. Although calm has been restored, the new speed with which events in Georgia turned leadership in Georgia still faces resentment, anti-Russian earlier this month may have made some in the party think again. especially after reports that troops had used There has long been a conservative chemicals against some demonstrators. Events there have rattled party men all the lobby in the Politburo which believes that the economy would work a lot more effi- way to Moscow. ciently with a little more discipline, even if it Nationalist demands have been growing was the discipline of the truncheon from louder in all the non-Russian republics since time to time. That is why both Mr Gorba- Mr Gorbachev's policy of glasnost allowed chev and Mr Shevardnadze have been at old complaints to be brought into the open. pains to point to the danger that nationalist Each outburst of resent- disturbances pose for reform. As Mr Shevardnadze put it last week to his Geor- ment has been containable. But to party people used to gian comrades: "Every river, however wide, being able to keep a tight lid has its banks. Every on things, they now seem to movement of people, however wide, has or come with alarming should have internal and rapidity. Local party bosses, who external limiting factors. If these limits are crossed, are at the sharp end of Mr Gorbachev's reforms, could as by a river in spate, then be forgiven for thinking devastating elemental forces may be unleashed. that they can get nothing right. The violence in Tbi- Alas, it is not only history that tells us this." Col- lisi, Mr Shevardnadze seemed to imply, would not ourfully put. But is any- have happened if Nocal body out there interested Communists had talked to in flood warnings? Come, come, children, these aren't toys 50 THE ECONOMIST APRIL 22 1989 Photocopy-Preservation TUO Speechwriter's Newsletter November 2, 1990 THE WEEKLY VOICE OF THE SILENT PROFESSION LETTERS All the President's speechwriters For Chriss Winston, head of the White House speechwriting An anonymous S/N reader sent in the staff, "the main thing is to always remain a team." following newspaper clipping and "Early in the administration, people in the press were all saying 'George Bush response. hates to give speeches.' My question is, if he hates to give speeches so much, why does he give so many?" asks Chriss Winston. President George Bush has delivered Peggy Noonan, former Ronald close to 600 speeches since taking office, but before he saw any of them, they had Reagan speechwriter, in her to go through Chriss Winston, Deputy Assistant for Communications, and head of Mirabella column: the White House speechwriting staff. "One of the things I have noticed "My job is to make sure the speech matches the policy, that the rhetoric matches lately about rich people is the what the President wants," Winston told SIN in a recent interview. In many perfection of their cars. I'm noting, in respects, Winston's job resembles that of a newspaper editor. She assigns exclusive restaurants, at editorial speeches, edits them, sends them out for clearance by cabinet officers, and recon- board meetings where the perfectly ciles the new language with the original text when the speech is returned. "This dressed politician comes to speak, all includes toasts and brief remarks by the President-everything goes through the these perfectly smooth, round cars, same process." unflawed by a stray hair, a mole, an Winston shares responsibility for hiring the White House speechwriters with imperfection of any sort. I'm at a David Demarest, Assistant to the President for Communications. "We debated at celebratory lunch at Le Cirque and to the beginning of the administration whether to recruit people with expertise in my right is a famous movie producer particular areas and pigeonhole them, but that wouldn't work with the number of -two big perfect pink seashells on speeches the President gives." Thus, all the President's speechwriters are general- the side of his head." ists-"All of them write on all subjects," Winston says, "and they're all experi- enced and flexible writers. They're extremely fast, and do well under pressure." When Winston receives a draft, she edits it for length, knowledge of the event Dear Peggy: and the audience, and what she calls "oomph," something special that might grab Two requests- some extra attention. Once the speech returns from the clearance process, Winston (1) Stop allowing yourself to be makes the requested changes (after discussing them with either the speechwriter or called a speechwriter. There are those the research assistant assigned to the speech) and does rewriting "if it's simple." If of us who are proud of our member- more complex revision is needed, Winston will give the speech back to the original ship in this 2500-year-old profession. writer, then consult with the cabinet staff to make sure the revised language is You, on the other hand, are a acceptable. Winston's policy is to avoid conflicts; there are seldom any "knock- dilettante and a pretender, and we down drag-outs" in the process. resent your associating yourself with Teamwork is essential to the speechwriting effort. "That's best for the Presi- us. dent," Winston says. "There are no prima donnas here. The main thing is to always (2) Shaddup! remain a team." In addition to the speechwriters, staff research assistants are "an integral part" of the team. "They look not only for factual accuracy, but they provide 'gee whiz' kinds of facts, anecdotes, color, and ideas that can make the difference between a good speech and a great speech." Winston's workday starts at eight or eight-thirty in the morning, and rarely ends less than twelve hours later. Although "there are days when I yearn to sit and write a whole speech," Winston looks at the White House job as "a once in a lifetime opportunity. It's a unique opportunity to learn so much. I haven't been so intellec- tually challenged in a long, long time." LAWRENCE RAGAN COMMUNICATIONS, INC., PUBLISHER RAGAN REPORT EDITOR'S WORKSHOP NEWSLETTER CORPORATE ANNUAL REPORT NEWSLETTER BOTTOM LINE COMMUNICATOR GEORGEE WILL Wilson, "is conscious that it has no other political spokes- 'Let Congress man. His is the only national voice Dahl doubts that presidential campaigns generate man- dates for specific policies. He says a necessary (but not Clear It Up' sufficient) condition for claiming a mandate is winning a majority of the votes. Reagan in 1980 (50.7 percent) and Carter in 1976 (50.1) barely qualified and Kennedy in 1960 (49.7) and Nixon in 1968 (43.4) did not. And, says Dahl, even when a president wins a majority there can be competing claims for mandates: Democratic candidates for the House Bush's pratfalls won 50.4 percent of the vote in 1980 and 52 percent in 1984. last week But wait. Perhaps it can be demonstrated (as modern opinion research purports to do) that presidential elections underscored usually involve meaningful majority consent to particular the evanescence policies only at high levels of generality ("Get America moving again," 1960; "Peace with honor," 1968; "Cut tax- of presidential es," 1980; "Nonew taxes," 1988). But such a demonstration does not dispose of the concept of a mandate. power Whatever else elections do, they confer offices. Since TR, Wilson and, decisively, FDR invented the modern presiden- cy, presidential elections have conferred a mandate in this wo weekends ago, when the government was un- limited but not negligible sense: Elections create a public T der the Gramm-Rudman guillotine, the president mood of initial deference to acts of presidential discretion. traveled back to Washington from Camp David by Specific mandate: In 1988 Bush got a mandate for what? car-not even a limousine-rather than helicop- For not furloughing Willie Horton? For pledging alle- ter, to affirm frugality. This Carteresque gesture giance? For cutting capital gains taxes? (How many Bush began a week during which Bush stepped from his car onto voters were swayed by, or even aware of, that idea?) But even a bunch of political banana skins strewn by himself. On campaigns less negative and vapid than Bush's confer, pri- Monday he said X about taxes. On Tuesday some Republi- marily, an office and initial deference. That is, an election can senators told him he really thought not-X, and he provides less a mandate than an opportunity to fashion a agreed. Asked on Wednesday (before Thursday's several specific mandate while, and by, governing. staggers) whether he could clarify his position he said, "Let "The president," wrote president (of Princeton) Woodrow Congress clear it up." Those were portentous words. Wilson in 1908, "is at liberty both in law and conscience to be Because of Bush's limitations as a leader he is losing a as big a man as he can. His capacity will set the limit; and if perennial constitutional argument: Who comes closest to Congress overborne by him, it will be no fault of themakers having, a mandate to rule, the president or Congress? of the Constitution-it will be from no lack of constitutional Bush's pratfalls last week underscored the evanescence of powers on its part, but only because the president has the presidential power. Bush is a case study of why, more often nation behind him, and Congress has not. He has no means than not, presidents lack mandates and Congress has, if of compelling Congress except through public opinion." not a mandate, the next best thing: supremacy. For a few presidents, those with the requisite will and Bush contributed to the restoration of the American skill, some modern extraconstitutional developments norm-congressional government-by the way he cam- (broadcasting; opinion measurements techniques) compen- paigned. Today he is augmenting congressional ascendan- sate for Congress's superior constitutional powers. The kind cy by governing in a manner that illustrates this: Most of presidency ("tribune of the people," "rhetorical," "plebis- presidents lack the skill or will to make the presidency citary") necessary for wresting supremacy from Congress is more than subservient. And now Robert A. Dahl, emeritus an innovation. "From Washington through Jackson," writes professor at Yale, has published (in Political Science Quar- Dahl, "no president gave more than five speeches a year to terly) an essay, "Myth of the Presidential Mandate," which the general public, a total that was not exceeded by half the suggests that subservience ought to be a president's lot. presidents from Washington through McKinley." Presi- Andrew Jackson was the first president to argue that dents spoke primarily to Congress (usually in formal lan- presidents, the officials elected by national votes, necessar- guage and deferential tones), and occasionally to the public ily acquire mandates that put them at least on a par with in the sort of generalities heard in Inaugural addresses. Congress, which is a conglomeration of representatives of But today's political culture-a maelstrom of interest lesser constituencies. Prior to Jackson and for most of the groups generated by omniprovident government-makes 19th century, the prevailing doctrine was that Congress is coherent congressional government impossible; hence pres- the principal representative of the people. Jefferson's first idential ascendancy is necessary. However, it may be be- message to Congress was couched in language of a nonparti- yond Bush's capacities. san executive: "Nothing shall be wanting on my part to Bush inherited the presidency from a "conviction inform, as far as is in my power, the legislative judgment, nor politician" who, because he was that, often aroused public to carry that judgment into faithful execution." According to opinion to compel Congress. But Bush seems to regard as Edward S. Corwin, the constitutional historian, "The tone of lèse-majesté the idea that he must constantly earn his claim [Jefferson's] messages is uniformly deferential to Congress." on the public's continuing deference. Such deference de- So totally did Monroe subscribe to the doctrine of congres- pends on clarity about ideas and principles-"the vision sional supremacy, he was utterly silent on the burning issue thing." That is why Bush's inarticulateness, although often of the day, the admission of Missouri and the status of comic, is not funny. It is not an esthetic but a philosophic slavery in Louisiana Territory. Teddy Roosevelt and, even failing. He does not say why he wants to be there, SO the more, Woodrow Wilson asserted presidential supremacy by public does not know why it should care if he gets his way. invoking the mystique of the mandate. The nation, wrote Until the public does, he won't. Congress will. 84 NEWSWEEK OCTOBER 22, 1990 Photocopy-Preservation Essay Charles Krauthammer Can America Stand Alone? as there ever been a more reluctant superpower than in any counterinvasion of Kuwait. In Kuwait, as in Korea (our H America? Has any great power taken less pleasure in its most recent exercise in collective security), if war comes it is foreign adventures? I doubt it. As shown yet again in the Persian America that will carry the fight. When the Iraqis complain Gulf, the U.S. is the world leader, and Americans hate the job. that the anti-Iraq coalition, the U.N. front, the whole multi- The idea that the world is an arenà of unending conflict repels lateral apparatus, is little more than a cover for an assertion of Americans. It means that a superpower's work is never done. American power, they exaggerate only slightly. Don't we get time off? Just weeks after winning the cold Nothing wrong with cover. It is nice to have. It is always war, we face a new war in the gulf. Like Americans going off to good to enter a conflict with lots of people cheering you on and Korea just five years after V-J day, we feel uneasy, disappoint- saying how noble your cause. It is still nicer to have others ed. The more disturbed among us feel betrayed. They need to standing on the front line with you, even though they are only a conjure up some conspiracy, some alien force (Jews, imagines token force. the fevered Pat Buchanan) dragging us again to war. Multilateralism is fine. But it carries two dangers. First, that The reluctant superpower seeks an end to toil. Which is why we will mistake illusion (world opinion, U.N. resolutions, pro- Americans are endlessly resourceful in trying to evade the bur- fessions of solidarity) for the real thing (American power), and dens of history. First, there was the assume that if we dispense with the isolationism of the '20s and '30s. Then, during the cold war, the American left counseled abdica- ILLUSTRATION real thing, illusion will get us to where we are going. The second danger is that tion, denying either that the cold multi-lateralism will become a fe- war existed or that it was anything tish. The need to nurture it can ac- more than a cozy arrangement to tually become a hindrance to the keep the Pentagon and the para- exercise of real, effective power. noid right happy. There are voices arguing that the Next, the cold war was won. In U.S. should not do anything in the the accompanying euphoria, the gulf-undertake military action, idea was born that having once for example-that might jeopar- again won the war to end all wars, dize the grand coalition it has put the U.S. could finally lay down its together. This is to confuse means burdens. Calls rang out for cutting and ends. The coalition is a means the defense budget in half by the to getting Iraq out of Kuwait. It is end of the decade. The New York- not an end in itself. As long as the er, with its unerring instinct for the means serves the end, it is worth politically trendy and the political- having. If there comes a point at ly stupid, suggested (quoting Dan- which holding the coalition to- iel Ellsberg) doing the 50% cut gether prevents us from achieving right now. In Congress the rush was on for wholesale Ameri- the objective, then surely the objective takes precedence. can demobilization. A reporter, complaining at a Feb. 12 The great danger with any collective action is that the more White House press conference about "out of sync" defense partners you have, the less you can do. U.N. resolutions, Securi- spending, asked the President, "Who's the enemy?" ty Council support, Soviet backing, allied troops and Japanese Well, now we know. Saddam Hussein has reminded Amer- money are all very welcome in this or any other American geo- icans the world is a nasty place. Americans do not appreciate political exertion. They are welcome but they cannot be made " the reminder. They find it hard to accept the fact that as the essential. Otherwise, American policy becomes prisoner to its planet's only remaining superpower, the U.S. is the one nation partners' wishes. The more partners, the more wishes. Options that can, and therefore must, face down the nasties. become constrained, the chances of success diminished. Hence the search for another way to avoid the crushing The point of policy, after all, is success. It is not to feel good. burdens of superpower responsibility. The search has borne It is not international applause. It is not to hold coalitions for fruit. The newest panacea for getting us off the hook has been the sake of coalitions. It is to achieve ends. If coalitions help, found: the U.N., multilateralism. collective security. Wood- fine. Otherwise, they cannot be allowed to paralyze policy. row Wilson's great dream that the world would respond to ag- President Bush says it is not America against Iraq but the gression by acting collectively rather than having to rely on a world against Iraq. In fact, it is America, with some friends fol- policeman (i.e., us) is finally coming true. lowing carefully behind. Collective security is a diplomatic What a dream. What an illusion. myth: convenient to use, dangerous to believe. What is happening in the gulf is not collective security but History has been severe with America. After reluctantly a coincidence of interests. And it is hardly collective. Without joining and decisively winning the three great wars of this cen- the U.S. leading, prodding, bribing and blackmailing, no one tury (World War I, World War II and the cold war), America would have stirred. Nothing would have been done: no embar- is permitted no rest. It keeps getting stuck with the job not just go, no Desert Shield. The world would have written off Kuwait of protecting itself but of imposing order on a disorderly the way the last body pledged to collective security, the world. Collective security is only the latest myth seized upon League of Nations, wrote off Abyssinia. by Americans desperate to believe they have found their well- Last week the commanders of both Egyptian and Syrian deserved escape from the burdens of history. forces in Saudi Arabia declared that they would not take part Unfortunately, and unfairly, they have not. 96 TIME, OCTOBER 22, 1990 Photocopy-Preservation NUTRITION a diet to put gluttonous Americans to shame A group of Emory University The lean years scientists, in The Paleolithic Prescrip- tion, calculated that a Stone Age diet provided five times the fiber, one THE FAR SIDE cartoon by Gary Larson is reprinted by permission of Chronicle Features, San Francisco, Callf. of early man fourth the salt and half the fat of a From the land that gave the West contemporary. American diet. Even moo shu pork, Peking duck and Si- when they gorged on buffalo meat chuan beef comes a warning: Don't made up roughly a third of their calo- eat them. The most encompassing ries-early humans ate better In fat study ever done on diet and health content, wild game is closer to bass examined 6,500 Chinese to serve up than to beef Also, venison fat is evidence that the less meat in the largely unsaturated, so it is less in- diet, the better-at least for Chinese clined to raise cholesterol levels. Though they eat 20 percent more cal- Consumption of tender and fatty ories than Americans for their size, domesticated meat has surged only Americans wind up 25 percent fatter, since the Industrial Revolution and partly because of meat consumption. especially in the 20th century. With it To Cornell University nutritionist have surged ailments of affluence: and study leader Dr. T. Colin Camp- 'Vegetarians return from the kill'. Cancer and atherosclerosis. Such af- bell, who will publish preliminary Te- flictions were as rare for game-eating sults next month, the data suggest ing on chops for hundreds of thou early hunters as they are for vegeta- we were meant to be "a vegetarian- sands of years What has changed is ble eating Chinese. Despite the centu- type species He would have a the choice of side dishes, and the ries and entree choices that divide the tough time convincing anthropolo- quality of the chops. two groups, their lean, fibrous fare gists. Homo sapiens has been chew- Our hunter-gatherer ancestors had makes them dietary cousins. 16 U.S.NEWS & WORLD REPORT, May 21, 1990 Photocopy-Preservation "This would have to all be done in a half hour." said a White House official, "which means the analysis. President's speech could only be 12 to 13 minutes." Reverend Jesse Jackson could get caught up in the net of ongoing Investigations John into Foreign the The BCGI scandal, as one of the original defendants prepares to testify before Senator Kerry's Jackson's Relations IS expected to come up in the testimony of Nazir Chinoy, one of the original defendants the Subcommittee on Terrorism. Narcotics, and International Operations tomorrow. of 1988 name BCCI indictments. Sources report Nazir, who plead guilty. is angling for a reduced sentence by cooperating with authorities like Senator Kerry and that his testimony could be related to allegations that Jackson received over $10.000 in hotel expenses paid by Nazir or other BCCI associates. There are reports that Jackson, like former President Jimmy Carter. Robert Altman, Clark Clifford. and former Atlanta Mayor Andrew Young. may have been introduced to BCCI operatives by Bert Lance. former OMB Director under Carter. Nazir was the regional manager for BCCI's European and African activities and operated out of Paris. He was indicted for his role in laundering the proceeds from sales of cocaine through BCCI and later plead guilty. He is the highest ranking BCCI official U.S. custody. In today's primaries, the most interesting contest on the ballot may be in Illinois, but not on the Presidential front. In an example of how quickly one's political fortunes can change, Senator Alan Dixon is fighting for his political life today as Democratic voters in Illinois decide whether or not the two-term Senator deserves his party's nomination this year. Just a few months ago, the consensus among most political analysts in Washington was that Dixon was untouchable. Dixon is opposed by attorney AI Hofeld. whose late surge some think could be enough to beat Dixon, and Carol Mosely-Braun, the Cook County recorder of Deeds who IS expected to do well in Chicago's Black precincts. Earlier in the campaign season, The Democratic State Party of Illinois took an unusual step in refusing to endorse incumbent Dixon because the race was a contested primary. Whether or not Dixon survives, some Republican observers are poised to interpret the verdict as a "win-win" situation for the GOP. speculating that even if Dixon hangs on to win today's primary, he will be "bloodied and broke." The winner of today's Democratic primary will face Republican Rich Williamson, a former Reagan White House official with extensive contacts in the Bush Administration and GOP financial circles. Some in the White House are concerned that the President's current re-election themes of family, jobs and peace are not catching fire with the electorate. To promote these themes, Bush has made welfare reform and educational choice two of his major topics during his campaign addresses, but there IS a growing sense that these words alone are not providing nearly enough of a reason for voters to justify giving Bush another term. "That does not exactly catch fire anywhere." said a White House official in referring to the current stump speech. The official added: "[Welfare and education reform] show up in the speeches, but there ain't no meat on those bones yet." The officials report that the newly organized White House policy shop is working to develop an "active element" to the themes, by providing new initiatives which would include goals to be achieved in the President's second term. The President provided a good example of his current campaign rhetoric late last night in Chicago. Bush told the audience at a Bush-Quayle fundraising dinner: "America was built on family and faith and freedom and these form the foundation of our great country and we must now renew those sources of our strength. And we must. for example, allow common sense to prevail in our welfare system. We've got to forge a new connection between welfare and work. And when Chicago, the city that works, finds that 17 percent of its population dependent on welfare. something's wrong. Americans aren't cold hearted. We're a caring people. Americans support welfare for families in need, but Americans want to see government at every level work together to track down the deadbeat dads, the ones who can't be bothered to pay child support, and they want to see us break this cycle of dependency that destroys dignity and passes down poverty from one generation to the next. That's wrong. That's cruel. And I'll tell you this: We are working hard to change it. My Administration will continue to encourage the states to innovate with plans that help people break welfare dependency and begin learning work skills. Here's another way that we 2 FASHION Armani's New Wo Order Dan- Agreat concept, The Milanese maestro takes on hanging by a thread. sweatshirts and slouch socks in his new A/X shop-the prototype for a major nationwide chain that J 05 Resmier Straight leg. natural REAR Faller from 14 Seeg seat Straight 44 LEAR'S / APRIL 1992 Pol John Lewis Gaddis THE POST-COLD WAR WORLD 103 understand, and so doing prepared the way for the more TOWARD THE POST-COLD WAR WORLD sophisticated strategy of containment that was soon to follow. The end of the Cold War was too sweeping a defeat for F totalitarianism-and too sweeping a victory for democracy- for this old geopolitical map to be of use any longer. But or the first time in over half a century, no single great another form of competition has been emerging that could be power, or coalition of powers, poses a "clear and present just as stark and just as pervasive as was the rivalry between danger" to the national security of the United States. The end democracy and totalitarianism at the height of the Cold War: of the Cold War has left Americans in the fortunate position of it is the contest between forces of integration and fragmenta- being without an obvious major adversary. Given the costs of tion in the contemporary international environment. The confronting adversaries who have been all too obvious since search for a new geopolitical cartography might well begin the beginning of World War II, that is a condition worthy of here. greater appreciation than it has so far received. II It would be foolish to claim, though, that the United States after 1991 can return to the role it played in world affairs I use the term "integration" in its most general sense, which before 1941. For as the history of the 1930s suggests, the is the act of bringing things together to constitute something absence of imminent threat is no guarantee that threats do not that is whole. It involves breaking down barriers that have exist. Nor will the isolationism of that era be possible in the historically separated nations and peoples in such diverse areas 1990s. Advances in military technology and the progress of as politics, economics, religion, technology and culture. It economic integration have long since removed the insulation means, quite literally, the approach to what we might call- from the rest of the world that geographical distance used to echoing some of the most visionary language of World War II-one world. provide. The passing of the Cold War world by no means implies an end to American involvement in whatever world is Integration is happening in a variety of ways. Consider, first, the communications revolution, which has made it impossible to follow; it only means that the nature and the extent of that for any nation to deny its citizens knowledge of what is going involvement are not yet clear. on elsewhere. This is a new condition in international politics, Finding one's way through unfamiliar terrain generally the importance of which became clear as revolution swept requires a map of some sort. Cartography, like cognition through eastern Europe in the fall of 1989. A new kind of itself, is a necessary simplification that allows us to see where domino theory has emerged, in which the achievement of we are, and where we may be going. The assertion that the liberty in one country causes repressive regimes to topple, or at world was divided between the forces of democracy and those least to wobble, in others. Integration through communica- of totalitarianism-to use the precise distinction made in tions has largely brought this about. President Harry S. Truman's announcement of the Truman Consider, next, economics. These days, no nation-not even Doctrine-was of course a vast simplification of what was the Soviet Union, or China, or South Africa or Iraq-can actually happening in 1947. But it was probably a necessary maintain itself apart from the rest of the world for very long. one: it was an exercise in geopolitical cartography that That is because individual nations depend, for their own depicted the international landscape in terms everyone could prosperity, upon the prosperity of others to a far greater extent than in the past. Integration also means that transna- tional actors like multinational corporations and economic John Lewis Gaddis is Distinguished Professor of History and Director of cartels can have a powerful influence on what happens to the Contemporary History Institute at Ohio University. This article is national states. And in Europe, integration has led to the adapted from a longer essay in the forthcoming book, American Defense creation of a potential new superpower in the form of the Annual: 1991-1992. European Community (EC). Europe as a whole, not just Brit- 104 FOREIGN AFFAIRS THE POST-COLD WAR WORLD 105 ain, France or Germany, is already a major player in the world by-product of integration since 1945 has indeed been peace, at economy, and it may soon become one in world politics as well. least among the great powers. The prosperity associated with Consider, as a third manifestation of integration, security. It market economics tends to encourage the growth of liberal used to be the case that nations relied exclusively upon their democracies; and one of the few patterns that holds up own strength to ensure their safety, and that is still primarily throughout modern history is that liberal democracies do not the case. But Woodrow Wilson began the movement toward go to war with one another.2 From this perspective, then, the collective security after World War I with his proposal for a old nineteenth-century liberal vision of a peaceful, integrated, League of Nations, and although that organization proved interdependent and capitalist world may at last be coming ineffective, it did give rise to a United Nations that in recent true. years has become a major force in international diplomacy. It is significant that the United States waited to gain U.N. III approval before using force in the Persian Gulf. Washington Would that it were so. Unfortunately, the forces of integra- has not always been so solicitous in the past, and the fact that tion are not the only ones active in the world today. There are the Bush administration proceeded in this way suggests that it also forces of fragmentation at work that are resurrecting old has come to see important advantages in the collective ap- barriers between nations and peoples-and creating new proach, which is to say the integrative approach, to security. ones-even as others are tumbling. Some of these forces have Then consider the integration of ideas. The combination of begun to manifest themselves with unexpected strength, just easy communications, unprecedented prosperity and freedom when it looked as though integration was about to prevail. The from war-which is, after all, the combination the Cold War most important of them is nationalism. gave us-made possible yet another integrationist phenome- There is, to be sure, nothing new about nationalism. Given non: ideas now flow more freely throughout the world than that the past half century has seen the number of sovereign ever before. This trend has had a revolutionary effect in states more than triple, it can hardly be said that nationalism certain authoritarian countries, where governments found was in a state of suspended animation during the Cold War. they had to educate their populations in order to continue to Still, many observers did have the sense that, among the great compete in a global economy, only to discover that the act of powers at least, nationalism after World War II had been on educating them exposed their minds to the realm of ideas and the wane. ultimately worked to undermine the legitimacy of authoritar- The very existence of two rival superpowers, which is really ianism itself.¹ The consequences can be seen in Chinese to say, two supranational powers, created this impression. We students who prefer statues of liberty to statues of Mao, in rarely thought of the Cold War as a conflict between compet- Soviet parliamentarians who routinely harangue their own leaders on national television and in the remarkable sight of ing Soviet and American nationalism: we saw it, rather, as a contest between two great international ideologies, or between the current president of Czechoslovakia-himself a living two antagonistic military blocs, or between two geographical symbol of the power of ideas-lecturing the Congress of the regions we imprecisely labeled "East" and "West." One could United States on the virtues of Jeffersonian democracy. even argue that the Cold War discouraged nationalism, par- Finally, consider peace. It has long been a central assump- ticularly in western Europe and the Mediterranean, where the tion of liberal political philosophers that if only one could mutual need to contain the Soviet Union moderated old maximize the flow of ideas, commodities, capital and people animosities like those between the French and the Germans, or across international boundaries, then the causes of war would the Greeks and the Turks, or the British and everybody else. drop away. It was for a long time an idea based more on faith Much the same thing happened, although by different and than on reality. But there is some reason to think that a 2 Michael Doyle, "Kant, Liberal Legacies, and Foreign Affairs," Philosophy and Public Affairs, See Theodore S. Hamerow, From the Finland Station: The Graying of Revolution in the Summer/Fall 1983, pp. 205-35, 323-35; also Doyle, "Liberalism and World Politics," American Twentieth Century; New York: Basic Books, 1990, pp. 210-25, 300-9. Political Science Review, December 1986, pp. 1151-69. 106 FOREIGN AFFAIRS THE POST-COLD WAR WORLD 107 more brutal means, in eastern Europe, where Moscow used the Warsaw Pact to suppress long-simmering feuds between may be. They also show up in the field of economics, where the Hungarians and the Romanians, or the Czechs and the they manifest themselves as protectionism: the effort, by Poles, or the (East) Germans and everybody else. Nationalism various means, to insulate individual economies from the might still exist in other parts of the world, we used to tell each workings of world market forces. They show up in the racial other, but it had become a historical curiosity in Europe. tension that can develop, both among states and within them: There were even those who argued, until quite recently, that the recent killings of blacks by blacks in South Africa, after the the Germans had become such good Europeans that they release of Nelson Mandela, illustrates the problem clearly. were now virtually immune to nationalist appeals and so had They certainly show up in the area of religion. The resur- lost whatever interest they might once have had in reunifica- gence of Islam might be seen by some as an integrationist force tion. in the Middle East. But it is surely fragmentationist to the Today the situation looks very different. Germany has extent that it seeks to set that particular region off from the reunified, and no one-particularly no one living alongside rest of the world by reviving ancient and not-so-ancient that new state-is quite sure of the consequences. Romanians grievances against the West, both real and imagined. Forces of and Hungarians threaten each other regularly now that the fragmentation can even show up as a simple drive for power, Warsaw Pact is defunct, and nationalist sentiments are mani- which is the only way I can make sense out of the fiendishly festing themselves elsewhere in eastern and southeastern complex events that have torn Lebanon apart since the civil Europe, particularly in Yugoslavia, which appears to be on the war began there in 1975. One can look at Beirut as it has been verge of breaking up. for the past decade and a half and get a good sense of what the The same thing could even happen to the Soviet Union world would look like if the forces of fragmentation should itself: nationalist pressures the regime thought it had smoth- ultimately have their way. ered as far back as seven decades ago are coming to the Fragmenting tendencies are also on the rise-they have forefront once again, to such an extent that we can no longer never been wholly absent-within American society itself. It take for granted the continued existence of that country in the would be difficult to underestimate the disintegrative effects of form that we have known it. the drug crisis in this country, or of the breakdown of our Nor should we assume that the West is immune from the system for elementary and secondary education, or of the fragmenting effects of nationalism. The Irish question ought emergence of what appears to be a permanent social and to be a perpetual reminder of their durability; there is also the economic "underclass." Well-intentioned efforts to decrease Basque problem in Spain, and the rivalry between the Flem- racial and sexual discrimination have increased racial and ings and the Walloons in Belgium. The American presence in sexual-as well as constitutional-tensions.® Linguistic anxi- the Philippines is becoming increasingly tenuous in the face of eties lurk just beneath the surface, as the movement to make growing nationalism, and similar pressures are building in English the official language of the United States suggests. South Korea. Nationalism is even becoming an issue in Japan, Immigration may well be increasing at a faster rate than what with recent controversies over the treatment of World cultural assimilation, which in itself has been a less than perfect War II in Japanese history textbooks and the Shinto ceremo- process. Regional rivalries are developing over such issues as nies that officially began the reign of the Emperor Akihito. It energy costs, pollution control and the bailout of the savings is worth recalling as well how close the Canadian confedera- and loan industry. And the rise of special interest groups, tion came in 1990 to breaking up-as it yet may-over the together with their ability to apply instant pressure through separatist aspirations of Quebec. There was even a point last instant communications, has thrown American politics into year when the Mohawk Indians were demanding, from Que- such disarray that elections are reduced to the unleashing of bec no less, recognition of their own rights as a sovereign state. attack videos, and the preparation of the budget has come to But the forces of fragmentation do not just take the form of pressures for self-determination, formidable though those 3 See "Race on "Campus," The New Republic, Feb. 18, 1991; also Dinesh D'Souza, "Illiberal Education," The Attantic, March 1991, pp. 51-79. 108 FOREIGN AFFAIRS THE POST-COLD WAR WORLD 109 resemble the endless haggling of rug merchants in some favor of either integrationist or fragmentationist Oriental bazaar. When the leading light of American conser- alternatives-could be a mistake. vatism has to call for a return to a sense of collective interest, Consider the long-term ecological problems we are likely to then the forces of fragmentation have proceeded very far face. The prospect of global warming looms as a constraint indeed.4 upon future economic development conducted in All of this suggests that the problems we will confront in the traditional-which is to say, polluting-ways. Integration post-Cold War world are more likely to arise from competing here, in the form of expanding industrialization and enhanced processes-integration versus fragmentation-than from the agricultural productivity, has created a new kind of danger. kinds of competing ideological visions that dominated the The worldwide AIDS epidemic illustrates how one integrative Cold War. Unlike the old rivalry between democracy and force, the increasing flow of people across international totalitarianism, though, the new geopolitical cartography pro- boundaries, can undermine the effects of another, which is the vides no immediately obvious answer to the question of which progress made toward the conquest of disease. Population of these processes might most threaten the future security pressure, itself the result of progress in agricultural produc- interests of the United States. tivity and in conquering disease, is in turn magnifying dispar- IV ities in living standards that already exist in certain parts of the world, with potentially disintegrative results. The forces of It would appear, at first glance, that the forces of integration integration, therefore, provide no automatic protection ought to be the more benign. Those forces brought the Cold against ecological threats: indeed, they are part of the prob- War to an end. They provided the basis for the relative lem. Despite classical liberal assumptions, we would be unwise prosperity that most of the developed world enjoyed during in assuming that an ever-increasing flow of people, commod- that conflict, and they offer the most plausible method of ities and technology across international borders will necessar- extending that prosperity into the post-Cold War era. They ily, at least from the ecological standpoint, make the world a combine materialism and idealism in a way that seems natural safer place. to Americans, who tend to combine these traits in their own Consider, next, the future of Europe. The reunification of national character. And they hold out the promise of an Germany, together with the enfeeblement and possible international order in which collective, not unilateral, security becomes the norm. breakup of the Soviet Union, is one of the most abrupt realignments of political, military and economic power in But is the trend toward integration consistent with the modern history. It has come about largely as a result of those traditional American interest, dating back to the Founding integrative forces that ended the Cold War: the much- Fathers, in the balancing of power? Has that interest become celebrated triumph of democratic politics and market econom- obsolete in the new world that we now confront? The long- ics.⁵ And yet, this victory for liberalism in Europe is producing standing American commitment to the balance of power was both integrative and disintegrative consequences. In Germany, based on the assumption that the nation would survive most demands for self-determination have brought political inte- comfortably in a world of diversity, not uniformity: in a gration, to be sure, but the economic effects could be disinte- homogeneous world, presumably, one would not need to balance power at all. No one would claim that the progress of grative. There are concerns now over whether the progress integration has brought us anywhere close to such a world. the EC has made toward removing trade and immigration barriers will be sufficient to tie the newly unified Germany Still, the contradiction that exists between the acts of balancing firmly to the West; or whether the new Germany will build its and integrating power ought to make us look carefully at the own center of power further to the east, with the risk that this post-Cold War geopolitical map. Jumping to conclusions-in might undo the anticipated benefits of 1992. 4 William F. Buckley, Jr., Gratitude: Reflections On What We Owe To Our Country, New York: Random House, 1990. 5 An extreme, but prominent, example of such celebration is Francis Fukuyama, "The End of History?" The National Interest, Summer 1989, pp. 3-18. 110 FOREIGN AFFAIRS THE POST-COLD WAR WORLD 111 In the Soviet Union, the triumph of liberalism has had profoundly disintegrative consequences. The central govern- rather, by exploiting an important consequence of integration, ment faces the possibility of becoming irrelevant as power which is the inability or unwillingness of highly industrialized diffuses down to the level of the republics, and even below. No states to control what their own entrepreneurs, even those one knows what the future political configuration, to say involved in the sale of lethal commodities, do to turn a profit. nothing of ideological orientation, of the potential successor The global energy market-another integrationist phenomenon-created the riches that made Kuwait such a states might be. Civil war, and even international war growing tempting target in the first place; it also brought about the out of civil war, are by no means unrealistic prospects; such dependence on Middle Eastern oil that caused so rapid a disruptions would be all the more dangerous because the military response on the part of the United States, its allies and Soviet Union's massive arsenal of nuclear and conventional even some of their former adversaries. The eagerness of this weapons will not disappear, even if the Soviet Union itself improbable coalition to defend the principle of collective does.⁶ The future of Europe, in short, is not at all clear, and it security would hardly have been as great if Benin had attacked is the increasing tension between processes of integration and Burkina Faso, or vice versa. fragmentation that has suddenly made the picture there so There is, of course, no assurance that Saddam Hussein cloudy. would have refrained from invading Kuwait if the Cold War Then consider the Middle East and Africa. The combination had been at its height. But there is a fair chance that either the of German reunification with Soviet collapse, if it occurs, will United States or the Soviet Union-depending upon which involve the most dramatic changes in international boundaries superpower Iraq was aligned with at the time-would have since the end of World War II. And yet no one seems to be sought to exert a restraining influence, if only to keep its thinking about what precedents this might set for other parts principal rival from exploiting the situation to its own advan- of the world where boundaries inherited from the colonial era tage. Certainly distractions associated with the end of the Cold do not even come close to coinciding with patterns of ethnicity, War in Europe during the first half of 1990 prevented both nationality or religion. If the Lithuanians are to get their own Washington and Moscow from giving the attention they state, it will not be easy to explain to the Palestinians or the should have to Persian Gulf affairs. Kurds or the Eritreans why they should not have theirs also. If It is also worth remembering that the first post-Cold War the boundaries of the dying Soviet empire are to be revised, year saw, in addition to the Iraqi occupation of Kuwait, the then why should boundaries established by empires long since near-outbreak of war between India and Pakistan, an intensifi- dead be preserved? cation of tension between Israel and its Arab neighbors, a Finally, consider the Iraqi invasion of Kuwait. It was Iraq's renewed Syrian drive to impose control over Lebanon and a integration into the international market in sophisticated mil- violent civil war in Liberia. Conflict in the Third World, it itary technology that made it possible for Saddam Hussein to appears, is not going to go away just because the Cold War has; perform this act of aggression. His arsenal of chemical and indeed it may well intensify. biological weapons, to say nothing of his surface-to-air- Finally, consider one other form of regional conflict that is missiles, Scuds, Mirages, the nuclear weapons he probably likely to affect the post-Cold War era: it is what we might call would have had if the Israelis had not bombed his reactor in the "post-Marxist revolution" crisis. The most potent revolu- 1981 and the long-range artillery he certainly would have had tionary force in the Third World these days may well be if the British had not become suspicious of his orders for very democracy. But it is no clearer there than it is in Europe that thick "oil pipes" early in 1990-all of this hardware was not this supposedly integrative "triumph of liberalism" will neces- forged by ingenious and self-reliant Iraqi craftsmen, working sarily promote peace. For just as the United States used to tirelessly along the banks of the Euphrates. Saddam obtained it, justify its intervention in Third World countries as a means of "inoculating" them against the "bacillus" of communism, so The depressing possibilities are well summarized in George F. Kennan, "Communism in the post-Cold War era could see military interventions by the Russian History," Foreign Affairs, Winter 1990/91, pp. 182-84. old democracies for the purpose of confirming in power-or 112 FOREIGN AFFAIRS THE POST-COLD WAR WORLD 113 restoring to power-new democracies. The violent, but over- whelmingly popular, American military operation to appre- finance the budgetary, energy and trade deficits Americans hend General Manuel Antonio Noriega in Panama could well incur through their unwillingness to make even minimal portend things to come. sacrifices in living standards. Threats can arise, though, not only from external sources; Whatever the causes of this situation, the long-term effects for the way in which a nation chooses to respond to threats cannot be healthy ones. Americans will not indefinitely serve as can, under certain circumstances, pose as much of a danger to "mercenaries" overseas, especially when the troops recruited its long-term interests as do developments beyond its borders. in that capacity come, as they disproportionately do, from the less fortunate social, economic and educational classes. Resent- The United States did not have to involve itself, to the extent that it did, in the Vietnam War. It did not have to become as ment over this pattern-when it develops-is likely to under- dependent as it has on foreign oil. It did not have to accumu- mine whatever foreign policy consensus may yet remain. Pressures will eventually build for all Americans to bear their late such massive budget deficits that the government will have no choice but to allocate a significant percentage of its reve- fair share of all the burdens that are involved in being a world power, and that may considerably diminish the attractions of nues, well into the 21st century, to paying off the accumulated continuing to be one. debt. All of these were decisions Americans made, not their The end of the Cold War, therefore, brings not an end to adversaries; yet their consequences have constrained, and in threats, but rather a diffusion of them: one can no longer the case of energy dependency and the national debt, will plausibly point to a single source of danger, as one could continue to constrain, American freedom of action in the throughout most of that conflict, but dangers there still will be. world for years to come. The architects of containment, when they confronted the These problems evolved from a curious unevenness that struggle between democracy and totalitarianism in 1947, knew exists within the United States these days in the willingness to which side they were on; the post-Cold War geopolitical bear pain. Americans have readily accepted pain in connection cartography, however, provides no comparable clarity. In one with their integrative role as a global peacekeeper. They have sense, this represents progress. The very absence of clear and repeatedly sent troops and resources overseas for the purpose present danger testifies to American success in so balancing of resisting aggression, even in situations where the probability power during the past four and a half decades that totalitari- of an attack was remote and where the states they were anism, at least in the forms we have considered threatening defending did not always see fit to contribute proportionately throughout most of this century, is now defunct. But, in to their own defense. The United States has been unwilling to another sense, the new competition between the forces of accept even moderate pain, though, when it comes either to integration and fragmentation presents us with difficult raising the taxes necessary to support the government expen- choices, precisely because it is by no means as clear as it was ditures its citizens demand, or to cutting back on those during the Cold War which tendency we should want to see expenditures to bring them into line with the taxes its citizens prevail. are willing to pay. The United States is generous, even profligate, with its military manpower and hardware, but it is V selfish to the point of irresponsibility when it comes to issues of Examine, first, the most extreme alternatives. A fully inte- lifestyle and pocketbook. As a result, a kind of division of grated world would be one in which individual countries labor has developed within the international community, in would lose control of their borders and would be dependent which the United States contributes the troops and the weap- on others for critical resources, capital and markets. It would onry needed to sustain the balance of power, while its allies mean, therefore, a progressive loss of national sovereignty, and ultimately the loss of whatever remained of national 7 James Chace has suggested, persuasively in my view, that this attitude goes back to identity. A fully fragmented world would approximate the Lyndon Johnson's attempt to fight the Vietnam War without asking for sacrifices on the home front. See his Solvency: The Price of Survival, New York: Random House, 1981, p. 15. Hobbesian state of anarchy that theorists of international relations assume exists but that, in practice, never has: the THE POST-COLD WAR WORLD 115 114 FOREIGN AFFAIRS world would be reduced to a gaggle of quarreling principali- fought to the point of total victory for the West. Fortunately ties, with war or the threat of war as the only means of settling victory, this time, did not require a war. The trouble with disputes among them. Both of these extremes-for these are victory, though, is that it tends to produce power imbalances. obviously caricatures-would undermine the international It was precisely to avoid this danger that the peacemakers of state system as we now know it: the first by submerging the 1815 and 1945, who designed the two most durable peace autonomy of states within a supranational economic order; the settlements of modern times, moved quickly after their respec- second by so shattering state authority as to render it impotent. tive triumphs to rehabilitate defeated adversaries and to invite No one seriously claims that, with the end of the Cold War, them back into the international state system. Perhaps because we can abandon the international state system or relinquish the communist regimes of the Soviet Union and eastern national sovereignty: not even our most visionary visionaries Europe have not actually suffered a military defeat-and also are prepared to go that far. This suggests, therefore, that the because of recent distractions in the Persian Gulf-we in the United States and its allies retain the interest they have always West are not focusing as carefully as we should on the had in the balancing of power, but that this time the power to problems of reconstruction and reintegration in that part of be balanced is less that of states or ideologies than of the the world. But should fragmentationist forces prevail there, processes-transcending states and ideologies-that are tend- the resulting anarchy-and mass emigration away from ing toward integrationist and fragmentationist extremes. In- anarchy-could destabilize any number of power balances. stead of balancing the forces of democracy against those of The situation then would certainly command our attention, totalitarianism, the new task may well be to balance the forces even if it does not now. of integration and fragmentation against each other: The peoples of the Soviet Union and eastern Europe will of What would this mean in practical terms? In the best of all course have to bear the principal burdens of reconstruction. possible worlds, of course, it would require taking no action at But they will not be able to accomplish this task alone, and all, because integrationist and fragmentationist forces would already discouragement and demoralization have set in among balance themselves. Unfortunately, though, in the imperfect them. It is in dealing with this kind of despair that aid from the world in which we live things rarely work out this neatly. Gaps "West"-including Japan-can have its greatest impact. A generally exist between what one wants to have happen and multinational Marshall Plan for former communist states what seems likely to happen; it is here that the choices of sounds impractical given the extent of the problem and the states-and of the leaders who govern them-make a differ- existence of competing priorities at home, but the "highly leveraged". character of that earlier and highly successful ence. These choices in the post-Cold War world are likely to enterprise ought not to be forgotten. The Marshall Plan center on those areas in which integrationist and fragmenta- worked by employing small amounts of economic assistance to tionist forces are not now balanced; where the triumph of one produce large psychological effects. It restored self-confidence over the other could upset the international stability upon in Europe just at the point, some two to three years after the which rest the security interests of the United States, its allies, end of the war, at which it was sagging. What was critical was and other like-minded states; and where action is therefore not so much the extent of the aid provided as its timing, its needed to restore equilibrium. They are likely to include the targeting and its publicity: its main purpose was to shift the expectations of its recipients from the belief that things could following: only get worse to the conviction that they would eventually get better. The Soviet Union and eastern Europe. Over the next decade, the most serious source of instability It will serve no one's interests in the West now, anymore in world politics will probably be the political, economic and than it would have served the interests of the victorious allies social fragmentation that is already developing where commu- after World War II, to allow despair, demoralization and nism has collapsed. Marxism-Leninism could hardly have disintegration to prevail in the territories of defeated Cold suffered a more resounding defeat if World War III had been War adversaries, What happened: in Germany after World 116 FOREIGN AFFAIRS War I ought to provide a sufficiently clear warning of the consequences that can follow when victors neglect the interests It's hard to "stay the course" when of those they have vanquished, and thereby, in the long run, neglect their own. the course keeps changing. New security and economic structures for Europe. Find out "why" and stay ahead of the Glaciers, when they invade a continent, not only obscure its literally press its surface down into the earth's mantle. Retreats FOREIGN course with FOREIGN POLICY-FREE topography but, through the weight of the accumulated ice, SPRING 1990 $6.25 of glaciers cause old features of the landscape slowly to rise up NUMBER again, sometimes altered, sometimes not. The expansion of 3 America William without Maynes the Cold War Even a fleeting glance at today's headlines tells you: Papal Foreign Policy the course of the world. the course of history, the Soviet and American influence over Europe at the end of 26 Bryen Hebir course of human events-they're all changing. World War II had something of the effect of such a glacier. It CENTERS OF POWER So how do you stay ahead of the course? Where can froze things in place, thereby obscuring old rivalries and NEW The Emengence of Central Asia you find explanations. detailed discussion. and new 49 bringing peace-even if a "cold" peace-to a continent that Locomorive ideas and approaches concerning foreign policy? 68 had known little of it throughout its history. Europe Leigh Bruce But now that the Cold War is over, geopolitical glaciers are Lowering the Sword 91 Salab Kbalef lyad) In the pages of FOREIGN POLICY. For two de- retreating, the situation is becoming fluid once again, and Misunders Mexico cades, FOREIGN POLICY has been the source of the 113 Cusubitmor Cardenas certain familiar features of the European landscape-a single perspectives and background necessary for a true un- derstanding of what's happening to the world. strong German state, together with ethnic and religious antag- I'M MAJANCE TURF onisms among Germany's neighbors to the east-are once Anger 131 Kan 110 more coming into view. The critical question for the future Japan Edson W. Spencer as Competitor FOREIGN POLICY tackles provocative issues. 153 stability of Europe is the extent to which the Cold War glacier FOREIGN POLICY isn't shy about challenging old permanently altered the terrain it covered for so long. Inte- 172 Dateline 78 patterns and triggering debate to include new options Burving unin and new ways of approaching thorny problems. grationist structures like the EC and NATO suggest such alter- ation; but they could also have been artifacts of the glaciation Try FOREIGN POLICY for free. Just return itself. 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SEND NO MONEY NOW Box 2104, Knoxville, Iowa 50197-2104. 5A227 THE POST-COLD WAR WORLD 117 collapse of the U.S.S.R.-that are already evident.⁸ The United States has used its influence, over the years, to favor integration over fragmentation in Europe; indeed with- out that influence, it is difficult to see how integration. could have proceeded as far as it has. But Americans cannot expect to maintain the authority the Cold War gave them on the The continent for very much longer, especially now that the Soviet European "glacier" is so obviously retreating. We would do well, then, to Magazine consider what new or modified integrative structures might Main topics in the current April/May issue: replace the role that the United States-and, by very different means, its former adversaries-played in "freezing" disinte- Europe will write the rules of trade - Lester C. Thurow grative forces in Europe during the Cold War. Otherwise, Peace is tough for the arms industry - Ian Anthony and Herbert Wulp serious imbalances could develop in that part of the world as Blueprint for GATT compromise - Aart de Zeeuw well. Deterring aggression. Two flags over Jerusalem? - Hans Küng One thing the Cold War did was to make the use of force by Israel's brief honeymoon - Michael Wolffsohn the great powers against one another virtually unthinkable. It created inducements that caused states to seek to resolve peacefully-or even to learn to live with-accumulated griev- The Baltics and the West - Egil Levits ances that could easily, prior to 1945, have provoked major wars. It did this by appealing more to fear than to logic, but Other topics: patterns of behavior that arise out of fear can, in time, come to The remedial war . The art of travel; Hans Dietrich Genscher, the king of seem quite logical. Few today would question the desirability of globetrotters @ Max Gallo: Money is the driving force of modern politics 0 Pitfalls of perpetuating, and if necessary reinforcing, the inhibitions that romanticism; What France should do in the Middle East . Country report; Doubt arose, during the postwar decades, against once violent pat- creeps into Swiss hearts. terns of great power behavior. European Affairs is the leading European Magazine, aimed at influential opinion The unprecedented multinational response to Saddam Hus- leaders and top decisionmakers in business, industry, finance and government, sein's aggression against Kuwait suggests that an opportunity published bi-monthly in the English language by Elsevier. now exists to extend disincentives to war beyond the realm of the great powers. The need to do this is urgent because the No other publication reveals so searchingly end of the Cold War is likely to end the informal crisis- the dynamics of evolving Europe management regime the United States and the Soviet Union have relied upon in the past to keep such regional conflicts SUBSCRIPTION ORDER FORM limited. I wish to subscribe to EUROPEAN AFFAIRS at the price of U.S. dollars 73, for one year. Woodrow Wilson's vision of collective international action to Mr. Mrs. Ms. Payment Enclosed (Payable to EUROPEAN AFFAIRS, deter aggression failed to materialize after 1919 because of Elsevier, Amsterdam, Holland) European appeasement and American isolationism, and after nction: American Express Eurocard Mastercard Access Visa Charge my credit card. (Delete as applicable) mpany/Institution: 8 The Conference on Security and Cooperation in Europe, now little more than a dress: Card framework for negotiations, suffers from a deficiency opposite to that of NATO and the vn/City: number European Community: with the single exception of Albania, it includes all of the states of Europe, from the largest to the most microscopic, and it requires unanimity in order to act, code: Expiry which in most cases ensures that it will not. date untry: ephone: Please send this completed order form to: 118 FOREIGN AFFAIRS THE POST-COLD WAR WORLD 119 1945 because of the great power rivalries that produced the are shaping our world intersect with one another, and about Cold War. None of these difficulties exist today. The world has where our own security interests with respect to these lie. a third chance to give Wilson's plan the fair test it has never Certainly there is much to be said, from a strictly economic received, and fate has even provided an appropriate occasion: perspective, in favor of reducing barriers to trade, investment successful U.N. action to restore Kuwaiti independence sets a and even labor flows across international boundaries if the powerful example that could advance us some distance toward result is to maximize production, minimize prices and ensure bringing the conduct of international relations within the that consumer needs are satisfied. But what if the result is also framework of international law that has long existed alongside to allow despots easy access to sophisticated military technol- it, but too often apart from it.⁹ ogy, or to increase the West's reliance on energy resources it Can such a legalistic vision sustain the realistic security does not control? Do market principles require that we wel- interests of the United States? Whether rightly or wrongly, the come on a continuing basis the dispatch of troops to safeguard answer was negative after World Wars I and II; but Americans critical supplies halfway around the world? There are political have reasons, this time, for giving a more positive reply. The costs to be paid for economic integration, and we are only now "long peace" that was the Cold War has already created in the beginning to realize what they are. practice of the great powers mechanisms for deterring aggres- These issues are only part of the much larger problem of sion that have worked remarkably well: these did not exist how one balances the advantages of economic integration prior to 1945. There could be real advantages now in codify- against its political and social disadvantages. Are Americans ing and extending this behavior as widely as possible. The really sure, for example, that they want to integrate their own evolution of a new world order designed to deter aggression economy into the world market if the result of doing that is to could ensure that the most important benefits of the "long shut down industries they have historically relied upon for peace" survive the demise of the Cold War. It could also both jobs and national defense? When the effects of integra- counteract the dangerous conviction, which American leaders tion are to transform once-diversified industrial complexes still at times appear to hold, that only the United States has the into strings of fast-food outlets and shopping malls, with the will and the capacity to take the lead in policing (or nannying) reduction in wages that kind of employment normally brings, one can hardly expect people to be out in the streets cheering the world. for them, however ingenious the rationalizations of our pro- fessional economists. Finding appropriate limits of interdependence. The Iraqi invasion of Kuwait raises another issue, though, Increasing labor mobility, together with the liberalized im- migration policies that facilitate it, provides yet another exam- that will involve more difficult choices: it has to do with just ple of how economic integration could produce political frag- how far we want economic integration to proceed. The pur- mentation. There are undeniable advantages in allowing pose of having global markets is to ensure prosperity, not to immigration, not just because it provides cheap labor but also compromise national sovereignty. And yet, it was the interna- because in some instances the host nation can gain a diverse tional market in oil and armaments that made it possible for array of sophisticated skills as a result. But immigration also Saddam Hussein to violate Kuwaiti sovereignty. Economic risks altering national identity, and the forces of integration integration, in this instance, produced literal political frag- have by no means advanced to the point at which one can mentation. This unexpected and dangerous juxtaposition sug- dismiss concerns over that issue as anachronistic. 10 As a nation gests strongly the need to think, more seriously than we have of immigrants, the United States handles problems of cultural to this point, about how the economic and political forces that assimilation more easily than most nations. Still, they are real 9 For an eloquent discussion of the advantages adherence to international law can offer, 10 William H. McNeill sets this problem within a long-term historical context in "Winds of see Daniel Patrick Moynihan, On the Law of Nations, Cambridge: Harvard University Press, Change," in Nicholas X. Rizopoulos, ed., Sea-Changes: American Foreign Policy in a World 1990. Transformed, New York: Council on Foreign Relations Press, 1990, pp. 184-87. 120 FOREIGN AFFAIRS THE POST-COLD WAR WORLD 121 problems, and they exist on a world-wide scale. Attempts to than Eisenhower himself to see the extent to which Americans write them off as reflections of an antiquated "nationalism," or even "racism," are not likely to make them go away. now finance the costs of defense-as well as everything else- What all of this suggests, therefore, is that we need better on credit extended by the unborn (who cannot object to the process) and by foreigners (who someday may). mechanisms for balancing the processes of integration and A return to solvency in its broadest sense-by which I mean fragmentation at those points at which economic forces inter- not just balanced budgets but bearing the full pain of what one sect those of politics and culture. The increasing permeability is doing at the time one is doing it-might discipline our of boundaries is going to be an important characteristic of the conception of the national interest in the way that it should be post-Cold War world, and it would be a great mistake to disciplined: through the constantly annoying, but also intellec- assume-as market principles encourage us to assume-that tually bracing, demands of stringency. The result might well in such an environment an "invisible hand" will always pro- be less grandiose visions, but more sustainable policies. duce the greatest benefits for the greatest number. As in most other areas, an equilibrium will be necessary: if imbalances of VI power are not to develop, then a certain amount of protec- Which is going to win-integration or fragmentation? At tionism, within prudent limits, may be required. first glance, it would seem that the forces of integration will almost certainly prevail. One cannot run a modern postindus- Regaining solvency. trial economy without such forces, and that, many people The principle of balancing power also requires that ends be would say, is the most important thing in the world. But that is balanced against means. National security, even in the most also a parochial view. Running a postindustrial economy may auspicious of circumstances, does not come cheap. This coun- not be the most important thing to the peasant in the Sudan, try's reluctance to bring the costs of providing for its security or to the young urban black in the United States or to the into line with what it is willing to pay suggests that integrative Palestinian who has spent his entire life in a refugee camp. For and disintegrative mechanisms are imperfectly balanced those people, forces that might appear to us to be fragmenta- within the United States as well as beyond its borders. tionist can be profoundly integrationist, in that they give The last American president to preoccupy himself with meaning to otherwise meaningless lives. solvency, Dwight D. Eisenhower, regularly insisted that the We should also recognize that the forces of integration may National Security Council specify as "the basic objective of our not be as deeply rooted as we like to think. It comes as national security policies: maintaining the security of the something of a shock when one realizes that the most impor- United States and the vitality of its fundamental values and tant of them-the global market, collective security, the "long institutions." To achieve the former without securing the peace" itself-were products of the Cold War. Their survival is latter, he warned, would be to "destroy what we are attempting by no means guaranteed into the post-Cold War era. Fragmen- to defend. "11 tationist forces have been around much longer than integra- Too often during the years that have followed Eisenhower's tionist forces, and now that the Cold War is over, they may presidency the quest for security has overwhelmed concern for grow stronger than at any point in the last half century. the vitality of fundamental values and institutions. The Viet- We should not necessarily conclude from this, though, that nam War, which came close to tearing this country apart, was it will always be in our interest to try to ensure that the forces fought for geopolitical reasons that remain obscure to this day. of integration come out on top. Surely, in light of the Persian The Watergate and Iran-contra scandals revealed how ex- Gulf War, the international community will want to restrict cesses committed in the name of national security can subvert future sales of arms across boundaries, and it would not be a constitutional processes. And no one would be more appalled bad idea to develop alternatives to dependency on Middle East oil as well. The increasing permeability of borders-the very 11 John Lewis Gaddis, Strategies of Containment: A Critical Appraisal of Postwar American thing most of the world welcomes when it comés to the free National Security Policy, New York: Oxford University Press, 1982, pp. 135-36.. flow of ideas-will by no means be as welcome when commod- 122 FOREIGN AFFAIRS William J. Crowe, Jr. ities, capital and labor begin flowing with equal freedom. And Alan D. Romberg Americans are already beginning to move away from the view that they can leave everything-international trade, energy RETHINKING SECURITY IN THE PACIFIC resources and especially the regulation of the savings and loan industry-to the "invisible hand" of market forces that the integrationist model in principle recommends. But swinging toward autarchy, nationalism or isolationism While hile the world's attention has been riveted on eastern will not do either. The forces of fragmentation lurk just Europe, the Soviet Union and the Middle East, transforming beneath the surface, and it would take little encouragement events have also been taking place in East Asia. American for them to reassert themselves, with all the dangers historical interests there are at least as deep, and though the changes are experience suggests would accompany such a development. not as dramatic the United States can ill afford to ignore them We need to maintain a healthy skepticism about integration: or leave its reaction in the hands of the fates-or compromises there is no reason to turn it into some kind of sacred cow. But in Washington's bureaucracy. we also need to balance that skepticism with a keen sense of Not only is the economic strength of Japan and the newly how unhealthy fragmentationist forces can be if allowed free industrializing economies in the region of great importance to rein. the United States, but Asian security issues also offer complex So we are left, as usual, groping for the middle ground, for new challenges to U.S. defense planners. On the one hand, the that rejection of extremes, that judicious balancing of pluses Soviet threat has undergone a profound change; this movement and minuses, that is typical of how articles like this are has been manifested in some Soviet force reductions and supposed to end. This one will be no exception to that rule. I changed dispositions in Asia, as well as in the plethora of Pacific would point out, though, that practical statecraft boils down, arms control overtures. On the other hand, American forces most of the time, to just this task of attempting to navigate the must still deal with a sizable Soviet military presence in the region middle course, while avoiding the rocks and shoals that lie on and play more subtle roles not related to the Soviet Union. either side. Certainly Americans, of all peoples, should find In the new post-Cold War era, what is the appropriate U.S. this a familiar procedure, for what is our own Constitution if military role in Asia? Indeed what are Washington's security not the most elegant political text ever composed on how to objectives? And, especially in light of the economic pressures balance the forces of integration against those of fragmenta- that Americans face at home and the growing nationalism and tion? It had been necessary, Madison wrote in The Federalist, economic strength of many Asian countries, what sort of no. 51, so to contrive "the interior structure of the government presence is necessary, appropriate and affordable to carry out as that its several constituent parts may, by their mutual that role? How is the United States to share responsibilities- relations, be the means of keeping each other in their proper both burdens and power? places. That would not be a bad design to follow with regard to the external world as all of us think about how we might II come to grips-as the Founding Fathers had to-with the The qualities that define Asia are enduring: it is huge, centripetal and centrifugal forces that are already shaping our diverse, dynamic and, frequently, dangerous. America's in- lives. volvement in World War II began and ended in Asia, and William J. Crowe, Jr., U.S. Navy (Ret.), former chairman, Joint Chiefs of Staff (1985-89), is professor of geopolitics at the University of Oklahoma and Counselor at the Center for Strategic and International Studies. Alan D. Romberg is the C. V. Starr Fellow for Asia Studies at the Council on Foreign Relations. This article grew out of discussions at a Council on 12 The Federalist Papers, New York: New American Library, 1961, p. 320. Foreign Relations study group. Administration of George Bush, 1991 / Dec. 25 ining Americans have the talent and power to and free. His and Foreign Minister Eduard do anything. And so when history remem- Shevardnadze's "New Thinking" in foreign ago, bers Christmas, 1991, let it remember that affairs permitted the United States and the vn it we promise to bring God's light to our Soviet Union to move from confrontation to have brothers and sisters in need. Let it record partnership in the search for peace across the that on Christmas, 1991, this Nation united the globe. Together we negotiated historic ways to ask God for peace on Earth, goodwill to reductions in chemical, nuclear, and con- who all. And let it record that a new age of ventional forces and reduced the risk of a de- goodness and hope began here and now. nuclear conflict. e so God bless you, and may your Christmas Working together, we helped the people that be bright with love. of Eastern Europe win their liberty and the such German people their goal of unity in peace Note: The President recorded this address at and freedom. Our partnership led to un- tory. 11:45 a.m. in the Blue Room at the White precedented cooperation in repelling Iraqi pirit House for broadcast at 2:30 p.m. A tape was aggression in Kuwait, in bringing peace to hard not available for verification of the content Nicaragua and Cambodia, and independ- I for of this address. ence to Namibia. And our work continues as we seek a lasting and just peace between veek Israelis and Arabs in the Middle East and an put end to the conflict in Afghanistan. ck in Statement on the Resignation of President Gorbachev's participation in volu- Mikhail Gorbachev as President of the these historic events is his legacy to his the Soviet Union country and to the world. This record as- rld's sures him an honored place in history and, December 25, 1991 most importantly for the future, establishes the a solid basis from which the United States Mikhail Gorbachev's resignation as Presi- fight dent of the Soviet Union culminates a re- and the West can work in equally construc- tive ways with his successors. ities markable era in the history of his country orts and in its long and often difficult relation- me. ship with the United States. As he leaves one office, I would like to express publicly and And on behalf of the American people my grati- Address to the Nation on the tude to him for years of sustained commit- Commonwealth of Independent States eals, ment to world peace, and my personal re- December 25, 1991 the spect for his intellect, vision, and courage. ing President Gorbachev is responsible for Good evening, and Merry Christmas to all ded one of the most important developments of Americans across our great country. at's this century, the revolutionary transforma- During these last few months, you and I also tion of a totalitarian dictatorship and the have witnessed one of the greatest dramas full liberation of his people from its smothering of the 20th century, the historic and revolu- embrace. His personal commitment to tionary transformation of a totalitarian dic- evo- God democratic and economic reform through tatorship, the Soviet Union, and the libera- perestroika and glasnost, a commitment tion of its peoples. As we celebrate Christ- which demanded the highest degree of po- in mas, this day of peace and hope, I thought litical and personal ingenuity and courage, we should take a few minutes to reflect on nds permitted the peoples of Russia and other what these events mean for us as Ameri- uce, Republics to cast aside decades of dark op- cans. the pression and put in place the foundations of For over 40 years, the United States led less freedom: the West in the struggle against commu- see Working with President Reagan, myself, nism and the threat it posed to our most gry; and other allied leaders, President Gorba- precious values. This struggle shaped the her chev acted boldly and decisively to end the lives of all Americans. It forced all nations hild bitter divisions of the cold war and contrib- to live under the specter of nuclear destruc- uted to the remaking of a Europe whole tion. For Pol 1883 Dec. 25 / Administration of George Bush, 1991 That confrontation is now over. The nu- some important steps designed to begin this clear threat, while far from gone, is reced- process. ing. Eastern Europe is free. The Soviet First, the United States recognizes and Union itself is no more. This is a victory for welcomes the emergence of a free, inde- democracy and freedom. It's a victory for pendent, and democratic Russia, led by its the moral force of our values. Every Ameri- courageous President, Boris Yeltsin. Our can can take pride in this victory, from the Embassy in Moscow will remain there as millions of men and women who have our Embassy to Russia. We will support served our country in uniform, to millions Russia's assumption of the U.S.S.R.'s seat as of Americans who supported their country a permanent Member of the United Nations and a strong defense under nine Presidents. Security Council. I look forward to working New, independent nations have emerged closely with President Yeltsin in support of out of the wreckage of the Soviet empire. his efforts to bring democratic and market Last weekend, these former Republics reform to Russia. formed a Commonwealth of Independent States. This act marks the end of the old Second, the United States also recognizes Soviet Union, signified today by Mikhail the independence of Ukraine, Armenia, Ka- Gorbachev's decision to resign as President. zakhstan, Belarus, and Kyrgyzstan, all States I'd like to express, on behalf of the Amer- that have made specific commitments to us. ican people, my gratitude to Mikhail Gorba- We will move quickly to establish diplomat- chev for years of sustained commitment to ic relations with these States and build new world peace, and for his intellect, vision, ties to them. We will sponsor membership and courage. I spoke with Mikhail Gorba- in the United Nations for those not already chev this morning. We reviewed the many members. accomplishments of the past few years and Third, the United States also recognizes spoke of hope for the future. today as independent States the remaining Mikhail Gorbachev's revolutionary poli- six former Soviet Republics: Moldova, Turk- cies transformed the Soviet Union. His poli- menistan, Azerbaijan, Tadjikistan, Georgia, cies permitted the peoples of Russia and the and Uzbekistan. We will establish diplomat- other Republics to cast aside decades of op- ic relations with them when we are satisfied pression and establish the foundations of that they have made commitments to re- freedom. His legacy guarantees him an hon- sponsible security policies and democratic ored place in history and provides a solid principles, as have the other States we rec- basis for the United States to work in equal- ognize today. ly constructive ways with his successors. These dramatic events come at a time The United States applauds and supports when Americans are also facing challenges the historic choice for freedom by the new here at home. I know that for many of you States of the Commonwealth. We congratu- these are difficult times. And I want all late them on the peaceful and democratic Americans to know that I am committed to path they have chosen, and for their careful attacking our economic problems at home attention to nuclear control and safety with the same determination we brought to during this transition. Despite a potential winning the cold war. for instability and chaos, these events clear- I am confident we will meet this chal- ly serve our national interest. lenge as we have so many times before. But We stand tonight before a new world of we cannot if we retreat into isolationism. hope and possibilities for our children, a We will only succeed in this interconnected world we could not have contemplated a world by continuing to lead the fight for few years ago. The challenge for us now is free people and free and fair trade. A free to engage these new States in sustaining the and prosperous global economy is essential peace and building a more prosperous for America's prosperity. That means jobs future. and economic growth right here at home. And so today, based on commitments and This is a day of great hope for all Ameri- assurances given to us by some of these cans. Our enemies have become our part- States, concerning nuclear safety, democra- ners, committed to building democratic and cy, and free markets, I am announcing civil societies. They ask for our support, and 1884 Administration of George Bush, 1991 / Dec. 26 to begin this we will give it to them. We will do it be- press hard to open more markets to quality cause as Americans we can do no less: American goods and services. ognizes and For our children, we must offer them the And that's why she's been a determined 1 free, inde- guarantee of a peaceful and prosperous advocate of free and fair trade, keenly a, led by its future, a future grounded in a world built aware that when the playing field is level, (eltsin. Our on strong democratic principles, free from American workers can compete with in there as the specter of global conflict. anyone anywhere. will support May God bless the people of the new Her first priority is the same as mine: jobs S.R.'s seat as nations in the Commonwealth of Independ- and economic growth. And she's shown a lited Nations ent States. And on this special day of peace deep commitment to public service, from 1 to working on Earth, good will toward men, may God serving on the Consumer Product Safety a support of continue to bless the United States of Amer- Commission to working as an alternate and market ica. Good night. public delegate to the United Nations. In addition to her corporate and interna- , recognizes Note: The President spoke at 9 p.m. from tional trade experience, Barbara is an entre- rmenia, Ka- the Oval Office at the White House. The preneur, founder and owner of her own an, all States address was broadcast live on nationwide management consulting firm. As one of the ments to us. radio and television. first women to earn an MBA from Harvard sh diplomat- University, she's also been a leader and role d build new model for many women in business. As we membership address the tough economic issues before not already The President's News Conference us, I look forward to Barbara Franklin's sound, experienced counsel. And she will recognizes December 26, 1991 undoubtedly be a valued member of our e remaining economic team. dova, Turk- Secretary-Designate of Commerce Let me just add that I am grateful for in, Georgia, The President. Good afternoon, the day Bob Mosbacher's service at the Department sh diplomat- after Christmas. Let me just say I am very of Commerce. I mentioned it here the are satisfied pleased to announce my intention to nomi- other day, but as I name Barbara Franklin nents to re- nate Barbara Hackman Franklin as the next to this new position, I again want to express democratic Secretary of Commerce. I've known Bar- to Bob Mosbacher my sincere appreciation ites we rec- bara for many years, and I am confident for a job so well done. And I have every that her outstanding record of achievement confidence that Barbara will continue that at a time in both the public and private sector will fine tradition of exemplary public service. ; challenges serve her well as she tackles this tough and And now, Madam Secretary-Designate, if nany of you important assignment. you would like to say a word or two, and I want all Barbara has dealt with a broad range of then we'll be-either both of us be glad to ommitted to domestic and international issues. She's a take some questions. ms at home recognized leader in her field. She served Ms. Franklin. Thank you very much, Mr. brought to on the board of directors of seven major President. I am deeply honored, almost industrial companies, manufacturing and beyond putting that into words, but I am t this chal- service, providing advice and guidance on absolutely thrilled to be a new part of your before. But how to successfully innovate, manage effi- team. And I'm particularly honored that solationism. ciently, and stimulate economic growth. In you have chosen me to follow my friend, erconnected fact, in 1990, the American Management Secretary Bob Mosbacher, who really has e fight for Association named her one of our Nation's done a wonderful job. And I admire very ade. A free 50 most influential corporate directors. much what you and he have done to forge is essential Currently in her fourth term as a a partnership between Government and means jobs member of the President's Advisory Com- business and to promote exports. And I look e at home. mittee on Trade Negotiations, she under- forward to working with everyone on your r all Ameri- stands firsthand the challenge America team in the administration to continuing e our part- faces in the international trade arena. She that momentum. locratic and knows that, currently, exports are our As Secretary of Commerce, when con- upport, and strong suit and that we must continue to firmed by the Senate, of course, I look for- 1885 [55] Mar. II Public Papers of the Presidents departments and agencies concerned stand of the Board, Westinghouse Electric Corp., Pitts- ready to give you all possible aid. burgh, Pa.; James B. Black, President, Pacific Gas & Electric Co., San Francisco, Calif.; and Vice Adm. Sincerely yours, Edward L. Cochrane, formerly Chief, Bureau of HARRY S. TRUMAN Ships, U.S. Navy, and President, The Society of Naval Architects and Marine Engineers. Mr. Keller NOTE: This is the text of identical letters addressed was appointed Chairman, and Mr. Folsom, Vice to the following appointees to the Advisory Com- Chairman of the Committee. mittee: K. T. Keller, President, Chrysler Corp., The letter and the list of appointees were part of Detroit, Mich.; Marion B. Folsom, Vice Chairman, a White House release announcing that the President Business Advisory Council for the Department of had that day established the Advisory Committee on Commerce, and Treasurer, Eastman Kodak Co., the Merchant Marine. Rochester, N.Y.; Andrew W. Robertson, Chairman 56 Special Message to the Congress on Greece and Turkey: The Truman Doctrine. March 12, I947 [ As delivered in person before a joint session ] Mr. President, Mr. Speaker, Members of the fered invasion, four years of cruel enemy Congress of the United States: occupation, and bitter internal strife. The gravity of the situation which con- When forces of liberation entered Greece fronts the world today necessitates my they found that the retreating Germans had appearance before a joint session of the destroyed virtually all the railways, roads, Congress. port facilities, communications, and mer- The foreign policy and the national chant marine. More than a thousand vil- security of this country are involved. lages had been burned. Eighty-five percent One aspect of the present situation, which of the children were tubercular. Livestock, I present to you at this time for your con- poultry, and draft animals had almost sideration and decision, concerns Greece disappeared. Inflation had wiped out prac- and Turkey. tically all savings. The United States has received from the As a result of these tragic conditions, a Greek Government an urgent appeal for militant minority, exploiting human want financial and economic assistance. Prelimi- and misery, was able to create political chaos nary reports from the American Economic which, until now, has made economic Mission now in Greece and reports from the recovery impossible. American Ambassador in Greece corroborate Greece is today without funds to finance the statement of the Greek Government that the importation of those goods which are assistance is imperative if Greece is to sur- essential to bare subsistence. Under these vive as a free nation. circumstances the people of Greece cannot I do not believe that the American people make progress in solving their problems of and the Congress wish to turn a deaf ear reconstruction. Greece is in desperate need to the appeal of the Greek Government. of financial and economic assistance to en- Greece is not a rich country. Lack of able it to resume purchases of food, clothing, sufficient natural resources has always fuel and seeds. These are indispensable for forced the Greek people to work hard to the subsistence of its people and are obtain- make both ends meet. Since 1940, this able only from abroad. Greece must have industrious, peace loving country has suf- help to import the goods necessary to restore 176 Harry S. Truman, 1947 Mar. I2 [56] Pitts- internal order and security so essential for in several parts of the world, including Gas & Adm. economic and political recovery. Greece. The Greek Government has also asked We have considered how the United au of ety of for the assistance of experienced American Nations might assist in this crisis. But the Keller administrators, economists and technicians situation is an urgent one requiring imme- Vice to insure that the financial and other aid diate action, and the United Nations and part of given to Greece shall be used effectively in its related organizations are not in a posi- esident creating a stable and self-sustaining economy tion to extend help of the kind that is tee on and in improving its public administration. required. The very existence of the Greek state is It is important to note that the Greek today threatened by the terrorist activities Government has asked for our aid in uti- of several thousand armed men, led by Com- lizing effectively the financial and other munists, who defy the government's author- assistance we may give to Greece, and in ity at a number of points, particularly along improving its public administration. It is the northern boundaries. A Commission of the utmost importance that we supervise appointed by the United Nations Security the use of any funds made available to nemy Council is at present investigating disturbed Greece, in such a manner that each dollar conditions in northern Greece and alleged spent will count toward making Greece Greece border violations along the frontier between self-supporting, and will help to build an is had Greece on the one hand and Albania, Bul- economy in which a healthy democracy roads, garia, and Yugoslavia on the other. can flourish. mer- Meanwhile, the Greek Government is un- No government is perfect. One of the id vil- able to cope with the situation. The Greek chief virtues of a democracy, however, is ercent army is small and poorly equipped. It needs that its defects are always visible and under estock, supplies and equipment if it is to restore democratic processes can be pointed out almost authority to the government throughout and corrected. The government of Greece prac- Greek territory. is not perfect. Nevertheless it represents 85 Greece must have assistance if it is to percent of the members of the Greek Parlia- ons, a become a self-supporting and self-respecting ment who were chosen in an election last want democracy. year. Foreign observers, including 692 chaos The United States must supply this assist- Americans, considered this election to be a nomic ance. We have already extended to Greece fair expression of the views of the Greek certain types of relief and economic aid but people. inance these are inadequate. The Greek Government has been oper- ch are There is no other country to which demo- ating in an atmosphere of chaos and ex- these cratic Greece can turn. tremism. It has made mistakes. The cannot No other nation is willing and able to extension of aid by this country does not ems of provide the necessary support for a demo- mean that the United States condones e need cratic Greek government. everything that the Greek Government has to en- The British Government, which has been done or will do. We have condemned in thing, helping Greece, can give no further finan- the past, and we condemn now, extremist ble for cial or economic aid after March 31. Great measures of the right or the left. We have obtain- Britain finds itself under the necessity of in the past advised tolerance, and we advise have reducing or liquidating its commitments tolerance now. restore 177 [56] Mar. I2 Public Papers of the Presidents Greece's neighbor, Turkey, also deserves States has taken a leading part in establish- our attention. ing the United Nations. The United Na- The future of Turkey as an independent tions is designed to make possible lasting and economically sound state is clearly no freedom and independence for all its mem- less important to the freedom-loving peoples bers. We shall not realize our objectives, of the world than the future of Greece. The however, unless we are willing to help free circumstances in which Turkey finds itself peoples to maintain their free institutions today are considerably different from those and their national integrity against aggres- of Greece. Turkey has been spared the dis- sive movements that seek to impose upon asters that have beset Greece. And during them totalitarian regimes. This is no more the war, the United States and Great Britain than a frank recognition that totalitarian furnished Turkey with material aid. regimes imposed upon free peoples, by direct Nevertheless, Turkey now needs our or indirect aggression, undermine the foun- support. dations of international peace and hence Since the war Turkey has sought addi- the security of the United States. tional financial assistance from Great Brit- The peoples of a number of countries of ain and the United States for the purpose of the world have recently had totalitarian effecting that modernization necessary for regimes forced upon them against their will. the maintenance of its national integrity. The Government of the United States has That integrity is essential to the preser- made frequent protests against coercion and vation of order in the Middle East. intimidation, in violation of the Yalta agree- The British Government has informed us ment, in Poland, Rumania, and Bulgaria. that, owing to its own difficulties, it can no I must also state that in a number of longer extend financial or economic aid to other countries there have been similar Turkey. developments. As in the case of Greece, if Turkey is to At the present moment in world history have the assistance it needs, the United nearly every nation must choose between States must supply it. We are the only alternative ways of life. The choice is too country able to provide that help. often not a free one. I am fully aware of the broad implications One way of life is based upon the will of involved if the United States extends assist- the majority, and is distinguished by free ance to Greece and Turkey, and I shall dis- institutions, representative government, free cuss these implications with you at this time. elections, guarantees of individual liberty, One of the primary objectives of the for- freedom of speech and religion, and freedom eign policy of the United States is the cre- from political oppression. ation of conditions in which we and other The second way of life is based upon the nations will be able to work out a way of will of a minority forcibly imposed upon life free from coercion. This was a funda- the majority. It relies upon terror and mental issue in the war with Germany and oppression, a controlled press and radio, Japan. Our victory was won over countries fixed elections, and the suppression of per- which sought to impose their will, and their sonal freedoms. way of life, upon other nations. I believe that it must be the policy of the To ensure the peaceful development of United States to support free peoples who nations, free from coercion, the United are resisting attempted subjugation by 178 Harry S. Truman, 1947 Mar. I2 [56] ablish- armed minorities or by outside pressures. striving to maintain their freedom and Na- I believe that we must assist free peoples independence. lasting to work out their own destinies in their own Should we fail to aid Greece and Turkey way. in this fateful hour, the effect will be far mem- I believe that our help should be primarily reaching to the West as well as to the East. free through economic and financial aid which We must take immediate and resolute is essential to economic stability and orderly action. political processes. I therefore ask the Congress to provide ggres- The world is not static, and the status quo authority for assistance to Greece and Tur- upon is not sacred. But we cannot allow changes key in the amount of $400,000,000 for the more tarian in the status quo in violation of the Charter period ending June 30, 1948. In requesting direct of the United Nations by such methods as these funds, I have taken into consideration foun- coercion, or by such subterfuges as political the maximum amount of relief assistance hence infiltration. In helping free and independ- which would be furnished to Greece out of ent nations to maintain their freedom, the the $350,000,000 which I recently requested of United States will be giving effect to the that the Congress authorize for the preven- principles of the Charter of the United tion of starvation and suffering in countries will. Nations. devastated by the war. has It is necessary only to glance at a map to In addition to funds, I ask the Congress realize that the survival and integrity of the to authorize the detail of American civilian and Greek nation are of grave importance in a and military personnel to Greece and Tur- agree- garia. much wider situation. If Greece should key, at the request of those countries, to of fall under the control of an armed minority, assist in the tasks of reconstruction, and for imilar the effect upon its neighbor, Turkey, would the purpose of supervising the use of such be immediate and serious. Confusion and financial and material assistance as may be disorder might well spread throughout the furnished. I recommend that authority entire Middle East. also be provided for the instruction and too Moreover, the disappearance of Greece as training of selected Greek and Turkish an independent state would have a profound personnel. of effect upon those countries in Europe whose Finally, I ask that the Congress provide free peoples are struggling against great difficul- authority which will permit the speediest free ties to maintain their freedoms and their and most effective use, in terms of needed berty, independence while they repair the damages commodities, supplies, and equipment, of of war. such funds as may be authorized. It would be an unspeakable tragedy if If further funds, or further authority, the these countries, which have struggled so should be needed for the purposes indicated upon long against overwhelming odds, should in this message, I shall not hesitate to bring and lose that victory for which they sacrificed the situation before the Congress. On this so much. Collapse of free institutions and subject the Executive and Legislative loss of independence would be disastrous branches of the Government must work per- not only for them but for the world. Dis- together. the couragement and possibly failure would This is a serious course upon which we who quickly be the lot of neighboring peoples embark. by 179 [56] Mar. I2 Public Papers of the Presidents I would not recommend it except that strife. They reach their full growth when the alternative is much more serious. the hope of a people for a better life has died. The United States contributed $341,000,- We must keep that hope alive. 000,000 toward winning World War II. The free peoples of the world look to us This is an investment in world freedom for support in maintaining their freedoms. and world peace. If we falter in our leadership, we may en- The assistance that I am recommending danger the peace of the world-and we shall for Greece and Turkey amounts to little surely endanger the welfare of this Nation. more than 1/10 of I percent of this invest- Great responsibilities have been placed ment. It is only common sense that we upon us by the swift movement of events. should safeguard this investment and make I am confident that the Congress will face sure that it was not in vain. these responsibilities squarely. The seeds of totalitarian regimes are nur- NOTE: For the President's statement upon signing tured by misery and want. They spread the bill endorsing the Truman Doctrine, see Item and grow in the evil soil of poverty and 100. 57 Statement by the President Concerning Greek Reaction to His Message. March 15, I947 I HAVE just received two warm and ap- I sincerely hope that these evidences of preciative messages from Greece, one from good will mark the beginning of a happier Prime Minister Maximos and one from Mr. era for Greece, in which all loyal citizens Themistocles Sophoulis, leader of the Parlia- will contribute their share toward the res- mentary Opposition. Both of these mes- toration of a country of whose democratic sages welcome the prospect of the kind of history they may be proud. It is also my American assistance which I recently re- profound hope that those Greeks who have quested Congress to authorize, and pledge taken up arms against their government will the wholehearted support of the Greek peo- accept with confidence the amnesty which ple in devoting any aid that may be forth- the Greek Government is extending to all coming to the purpose of constructive except those guilty of crimes against the rehabilitation and the cause of peace and common law. The Greek people, aware of freedom. These two statements bear witness the sympathetic interest of the American to the fact that all of the Greek Parliament, people, will, I am sure, rally their strength including the Opposition as well as those to vitalize their national life, forgetting parties now represented in the Coalition past excesses and looking courageously to- cabinet, are prepared to cooperate unreserv- ward a hopeful future. edly with the United States Government in NOTE: The messages to the President from Demetrios its desire to assist Greece in restoring those Maximos, Prime Minister of Greece, and Themis- basic conditions of economic stability and tocles Sophoulis, the leader of the Opposition Com- internal order which will allow the Greek mittee, were released with the President's statement. people to build their future in peace and security. 180 1 them to has this many paid times a price for higher for peace. 2 3 [99] May 22 Public Papers of the Presidents therefore essential that there be continued Secretary of State to be of high public im- authority to restrict imports and to issue portance and essential to the successful carry- priorities for export of nitrogenous fertilizer ing out of the foreign policy of the United materials. States. (c) INDUSTRIAL MATERIALS. In general In this message I have not considered it our supply of industrial products and ma- necessary to discuss certain powers originally terials has reached the point where delays derived from the Second War Powers Act in production and delivery are no longer but now covered by separate legislation, i.e., crucial. The pipelines are full, or are filling the Sugar Act, the Rubber Act and the Pat- up, and no general use of allocation powers man Act. I have also omitted reference to is needed. But economic and political con- the great importance of continued authority ditions in many other countries are so critical to allocate the use of transportation equip- that it is necessary to continue the power to ment and facilities by rail carriers. This issue export priorities in special cases for key matter is covered by separate bills, H.R. 3152 industrial items that are vitally required for and S. 1297, now pending before the Con- reconstruction and rehabilitation. In most gress. Prompt action on these bills is ur- countries, supplies of industrial materials gently needed. Similarly, the Congress now and products are still far short of minimum has under consideration an extension of the essential levels. Entirely apart from the use Export Control Act. It, too, is essential in of priorities, the United States is furnishing implementing our foreign policy. I also substantial quantities of industrial equip- urge prompt action on this bill. ment and supplies so urgently needed to re- The further extension of the Second War activate the economies of these countries. Powers Act in the limited form described However, great damage can be done by in- above is of direct interest to our own econ- ability to obtain an occasional machine, or omy and is indispensable in supporting our machine parts needed to complete a program international policy. The powers that I or project. It is in such cases that priority have outlined are the minimum needed to assistance is needed. The Congress has accomplish these ends. I therefore recom- already recognized the importance of sup- mend that the Congress enact legislation to porting our foreign policy with financial extend these powers for a period of one year. assistance. Financial assistance alone, with- HARRY S. TRUMAN out occasional priority backing, may be useless in instances where speedy aid in con- NOTE: On July 15 the President approved the Second crete form is essential. The use of the Decontrol Act of 1947 providing for an extension until February 29, 1948, of certain emergency priority powers that I am recommending powers of the President. For his statement upon would be limited to cases certified by the signing the act, see Item 143. I00 Statement by the President Upon Signing Bill Endorsing the Truman Doctrine. May 22, 1947 THE ACT authorizing United States assist- building of the peace. Its passage by over- ance to Greece and Turkey, which I have whelming majorities in both Houses of the just signed, is an important step in the Congress is proof that the United States 254 Harry S. Truman, 1947 May 26 [101] high public im- earnestly desires peace and is willing to make are being instructed to enter into immediate : successful carry- a vigorous effort to help create conditions cy of the United negotiations for agreements which, in accord- of peace. ance with the terms of the act, will govern The conditions of peace include, among the application of our aid. We intend to not considered it other things, the ability of nations to main- make sure that the aid we extend will benefit bowers originally tain order and independence, and to support all the peoples of Greece and Turkey, not Var Powers Act themselves economically. In extending the any particular group or faction. e legislation, i.e., aid requested by two members of the United I wish to express my appreciation to the Act and the Pat- Nations for the purpose of maintaining these leaders and members of both parties in the .ted reference to conditions, the United States is helping to Congress for their spendid support in ob- tinued authority further aims and purposes identical with taining the passage of this vital legislation. portation equip- those of the United Nations. Our aid in carriers. This NOTE: As enacted, the bill providing assistance to this instance is evidence not only that we Greece and Turkey is Public Law 75, 80th Congress bills, H.R. 3152 pledge our support to the United Nations (61 Stat. 103). before the Con- On May 22 the President also issued Executive but that we act to support it. hese bills is ur- Order 9857 prescribing regulations for carrying out With the passage and signature of this the provisions of the act (3 CFR, 1943-1948 Comp., e Congress now act, our Ambassadors to Greece and Turkey p. 646). extension of the , is essential in policy. I also ill. IOI Special Message to the Congress on Military Collaboration e Second War With Other American States. May 26, 1947 orm described [ Released May 26, 1947. Dated May 23, 1947 ] our own econ- supporting our To the Congress of the United States: As stated in my message to the 79th Con- owers that I I submit herewith for the consideration of gress our Army and Navy have maintained um needed to the Congress a bill to be entitled "The Inter- cordial relations of collaboration with the erefore recom- American Military Cooperation Act" au- armed forces of other American republics legislation to thorizing a program of military collabora- within the framework of the good-neighbor d of one year. tion with other American States including policy. Under authorization of the Con- S. TRUMAN the training, organization, and equipment of gress, military and naval training missions oved the Second the armed forces of those countries. have been sent to various American repub- or an extension I submitted a similar bill to the 79th Con- lics. During the recent war, even prior to ain emergency gress and recommended at that time that the Pearl Harbor, this collaboration was inten- statement upon Congress give the bill favorable considera- sively developed on the basis of inter-Amer- tion and enact it. The Committee on For- ican undertakings for hemisphere defense. eign Affairs of the House of Representatives Training activities were expanded, and reported the bill with amendments to the under the Lend-Lease Act limited amounts Committee of Whole House as H.R. 6326. of military and naval equipment were made This present draft agrees with H.R. 6326. available to the other American republics as World developments during the year that part of the hemisphere defense program. has passed give still greater importance to Forces from two of the American republics age by over- this legislation, and I again ask the Congress participated in combat overseas, and others ouses of the to give this bill favorable consideration and joined in the defense of the shores and seas nited States enact it. of the Americas at a time when the danger 99-438-63-19 255 Vital Speeches of the Day REG. U:S. PAT. OFF. VOL. LV APRIL 15, 1989 NO. 13 Arms Control and Soviet Relations OUR POLITICAL VALUES - AN INSPIRATION TO ALL 1522 By MAX M. KAMPELMAN, Former U.S. Ambassador, Chairman of Freedom House Delivered at the United States Marine Corps Education Center, Quantico, Virginia, March 1, 1989 M R. CHAIRMAN, Mrs. Erskine, distinguished it was when my grandparents were born. The average world Guests, Friends: I am pleased to be with you this standard of living has, by one estimate, quadrupled in the past evening. Yours is a distinguished institution, new but century. More than 80 percent of all scientists who ever lived already significant and prestigious. You are dedicated to pro- are alive today. In this century, our country's frontiers of explo- viding the "Margin of Excellence" which has characterized the ration have gone from Alaska to the far side of the moon, and Marine Corps since its inception. You do so by training lead- beyond. New computers, new materials, new bio-technological ership for a dauntingly complex today and the even more com- processes are altering every phase of our lives, deaths, even plex tomorrow facing our country. America owes you a great reproduction. World communications are now instantaneous, debt for that commitment. It is a privilege for me to be deliv- and transportation is not far behind. ering tonight's General Graves B. Erskine lecture. I cherish These developments are stretching our minds to the outer- the honor and look upon it as a highlight to an otherwise all most dimensions of our capacity to understand them. More- too brief period of service as a Marine. over, as we look ahead, we must agree that we have only the This occasion, in this forum, before this audience, six weeks minutest glimpse of what our universe really is. Indeed, "Our after leaving Government service, is appropriate for some per- science is a drop, our ignorance a sea." sonal retrospection and analysis. I invite you to join me as I Much has been said, and much more must be said, about the stand back and evaluate our country's leadership role in an significance of those awesome changes. But today, I would like international community in a world that is changing so fast and to address this question in the context of our national security so dramatically that we scarcely have time to focus on its details and our quest for "peace," a peace with dignity and liberty, let alone its scope. understandably considered to be the ultimate objective of our The pace of change in this century is greater than in all of diplomacy. It is a goal easy enough to state, but difficult to mankind's previous history put together. Any statement we define, let alone attain. make today about tomorrow is likely to be obsolete even before Men and women seem capable of mobilizing their talents to the day is over. And newer scientific and technological devel- unravel the mysteries of their physical environment. We have opments on the horizon will probably make all previous dis- learned to fly through space like birds and move in deep waters coveries dwarf by comparison. During my lifetime, medical like fish. But how to live and love on this small planet as knowledge available to physicians has increased more than brothers and sisters still eludes us. In every age, that has been ten-fold. The average life span is now nearly twice as great as the essence of the challenge. It is the primary challenge facing POLICY OF VITAL SPEECHES The publishers of Vital Speeches believe that the important addresses of the recognized leaders of public opinion constitute the best expression of contemporary thought in America, and that it is extremely important for the welfare of the nation that these speeches be permanently recorded and disseminated. The publishers have no axe to grind. Vital Speeches will be found authentic and constructive. 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An annual index is printed each November and distributed to all subscribers. Cumulative Index. Volumes 1-25, $50.00 per copy plus postage. Volume Binder for Vital Speeches $10.00 plus postage. Vital Speeches will be found on file in thousands of public, college and high school libraries throughout the United States. Second Class postage paid at Mount Pleasant, S.C. and additional mailing offices. POSTMASTER: Send address changes to: 389 Highway 17 By-Pass, Box 1247, Mount Pleasant, S.C. 29465. MAX M. KAMPELMAN 387 the next President - and he builds on an extraordinary begin- where democracy and freedom stand in the world. The latest ning by President Reagan. survey released a few weeks ago shows that a higher percent- We are brought up to believe that necessity is the mother of age and a higher number of people live in freedom in 1988 invention. I suggest the corollary is also true: invention is the than ever previously recorded - nearly two billion people. mother of necessity. Technology and communication have Just under 40 percent of the world's population lives in 60 made the world smaller. There is no escaping the fact that the countries and 39 related territories that are free. Major sound of a whisper or a whimper in one part of the world can advances in freedom were recorded, furthermore, in every part immediately be heard in all parts of the world. And yet the of the world. In the past fifteen years the number of countries world body. politic is not keeping pace with those realities. which can be called "free" or "partly free" has climbed from What we have instead been observing is an intense fraction- 92 to 117, with about 63 percent of the world's population alization, as large numbers of peoples have had their emotions living in these countries, while the number of "not free" inflamed by nationality and religious appeals. It is as if a part declined from 71 to 50, with China and the Soviet Union rep- of us is saying: "Not so fast. We are not ready. Our religious resenting more than 70 percent of those not living in freedom. and communal culture has not prepared us for this new world When permitted, and sometimes even when not, people are we are being dragged into. We resist the pressures by holding choosing freedom. on tight to the familiar, the traditional; and we will do so with There is alongside the cry for freedom also the clamoring a determined frenzy!" sound for peace. Peace is the indispensable ingredient for the But the inevitable tomorrow is appearing. Economic, tech- evolution of Man from the species homo sapiens to the species nological, and communication advances have made global "human being." But what does it mean? It is a proud word that interdependence a reality. Economic power and industrial has too often been corrupted. There is the peace of the grave; capacity are ever more widely dispersed around the globe. Our the peace that reigns in a well-disciplined prison or gulag; the political and economic institutions are feeling the stress of peace that may plant, with its terms, the seeds of a future war. these pressures as they try to digest their implications. We Certainly those are not what our dreamers and philosophers have yet to come to grips with a world in which the combined have yearned for. It is peace with dignity and liberty that we gross national product of Europe, for example, exceeds that of seek. the United States; and the gross national product of Japan The discussion of war since the beginning of time has been- exceeds that of the Soviet Union; while the economies of South surrounded by ethical considerations. Theologians have long Korea, Taiwan, Hong Kong, and Singapore have moved, in the debated the "just war." From Thucydiudes to Tolstoy to space of a generation, to international influence far beyond Churchill, it was understood that wars could not just be fought, their relative size. And we have yet to settle on a legal and without justification. Ancient Greek philosophers and early regulatory framework to cope with a world where economic Christian writers accepted war as a necessary part of nature. interdependence blurs the origin of products, and where inter- St. Augustine found justification for war in intervening to pro- national financial flows in a single day (about $1 trillion) equal tect the innocent; Thomas Aquinas, in punishing wrongdoers; the U.S. government's annual budget. for others, simply the notion of defense. Modern day inter- There are, furthermore, new sounds and among those most national law, reflected in the United Nations Charter, embraces clearly and loudly heard are the sounds of freedom and democ- the "inherent right of individual or collective self-defense." racy. The striving for human dignity is universal because it is Today, as it must, modern technology profoundly enters the an integral part of our human character. We see it in Burma, discourse. Even before the full impact of nuclear weapons could Pakistan, Korea, the Philippines, South Africa, Chile, Poland. be felt, Reinhold Niebuhr noted that "we have come into the A larger part of the world's population is today living in rel- tragic position of developing a form of destruction which, if ative freedom than ever before in the history of the world. used by our enemies against us, would mean our physical anni- Even in Latin America, a region of the world we grew up hilation; and, if used by us against our enemies, would mean believing to be governed by military dictatorships and tyran- our moral annihilation." He noted "a moral dilemma for which nies, more than 90 percent of the people today live, though there is no clear moral solution." still precariously, in democracies or near democracies. In our Neither the diplomat nor the politician in a democracy can own hemisphere, fifteen years ago South America had only afford to ignore the moral dimension of foreign policy. The two functioning democracies. Today it has only two dictator- citizen does not. With the clearly devastating character of ships; with Paraguay one of them, just getting rid of its dic- modern weapons, conventional and nuclear, no democracy can tator, and Chile, the other, recently voting to do SO. The Car- effectively pursue its diplomacy, where the availability of force ibbean is today entirely democratic, except for Cuba and Haiti, is an indispensable ingredient, unless there is a broad con- with the rulers of Haiti now promising early and free elections. sensus behind the policy. Certainly for the United States, that In Central America, there are now four democracies, with consensus requires a moral foundation. Nicaragua the blatant exception and the military dictator of The pacifist meets - some would say avoids - the Niebuhr Panama holding on precariously. Mexico completes the hemi- moral dilemma by declaring an absolute principle. "Wars will spheric round-up with indications from its most recent elec- cease when men refuse to fight" is the slogan. "Someday they'll tions that its political system may well be opening up. give a war and nobody will come," wrote Carl Sandburg. Pres- Let me take a moment to elaborate upon this point. I am ident Mitterrand had this phenomenon in mind with his sar- this month reassuming the Chairmanship of an organization donic comment that the Soviet Union produces weapons while known as Freedom House. The organization, formed at the the West produces pacifists. end of World War II by Eleanor Roosevelt and Wendell Willkie, The pacifist principle that war is a greater evil than any evil is a non-partisan one in behalf of liberty all over the world. it would seek to correct seemingly justifies yielding to the lesser Freedom House annually publishes the definitive inventory of evil in the faith that history or a higher moral authority will in 388 VITAL SPEECHES OF THE DAY the end set things straight. Regrettably, this has in recent years duce results. For the first time since the dawn of the nuclear led to a rationalization that the purported enemy is not so evil age, we have produced a treaty completely eliminating to zero after all. Thus, the sad alliance of some pacifists with politi- two entire categories of nuclear missiles. A total of 2096 war- cally motivated cadres who told us that Hitler was only reflect- heads - 1667 Soviet and 429 U.S. - will disappear. We have ing rightful German grievances; or that the brutal excesses of already started to destroy these missiles. We have continued to Stalin and Mao were simply capitalist exaggerations; or that make progress in Geneva where we have completed more than North Vietnam was seeking to unify and not subjugate its 300 pages of a joint draft text of a treaty which would achieve peninsula; or that the Sandinistas are idealistic revolutionaries 50 percent reductions in long-range strategic nuclear weapons, rather than totalitarian communists. Clausewitz reminds us the most dangerous and destabilizing nuclear forces on this that "The aggressor is always peaceloving. He would-like to planet. We are also on the verge of completing two treaties on make his entry into our country undisturbed nuclear testing. Pacifists, many but not all of whom recognize the high moral Current United States policy is to reduce risks and tensions duty to identify, challenge and attempt to defeat evil, focus on while maintaining the strategy of deterrence. In addition to the power of love and non-violent resistance to evil. The human negotiating toward further verifiable and stabilizing reduc- being, they argue, has the capacity to respond more to the tions in nuclear arms, we are preparing for talks to begin in a human force of love and conscience in his fellow man than to few days to reduce conventional arms and are continuing coercion and hate, which perpetuate conflict. Modern tech- with talks dealing with the scourge of chemical weapons. nology now challenges that pacifist faith by depersonalizing Simultaneously, we are engaged in a process to build realistic, and automating the process of war. The armed adversary in constructive, and more cooperative relations with the Soviet modern war never sees his victim, who, therefore, cannot reach Union. his adversary to project the power of his love. The human We have obviously begun an historic process, all in the con- dimension disappears. The Russian proverb goes: "Make your- text of change. Change is inevitable. As it must under the laws self into a sheep, and you'll meet a wolf nearby." of nature, today will soon be yesterday and tomorrow will soon Society, therefore, looks beyond pacifism for the peace with be with us. We must not fear it. We must influence it. With the freedom and dignity we all seek. Here, those who have been complex issues we face, however, even should change bring called, "the moral architects," present their case. They seek to with it further reduction agreements, we will still be nearer to build a moral framework in which war could be contained, the beginning than to the end of that process. restrained, and perhaps even humanized. They accept the The tensions that have characterized our relations with the legitimacy of force and its presence in human history, but within Soviet Union are real. Our problems are too profound to be a moral universe. thought of as being resolved by quick fixes, super negotiators, Non-intervention as an approach has historically also had a summit, or a master-dráftsman capable of formulating lan- its advocates. It was John Stuart Mill, however, who pierced guage to overcome differences. The leadership of the Soviet the balloon of simplicity when he wrote: Union is serious. Its diplomats are well trained. Their response "The doctrine of non-intervention, to be a legitimate in a negotiation is motivated by one primary consideration: principle of morality, must be accepted by all govern- their perceived national self-interest. ments. The despots must consent to be bound by it as The fundamental challenge to the free world has been a well as the free States. Unless they do, the profession of Soviet principle that everything that has become Communist it by free countries comes but to this miserable issue, remains forever inviolate; and everything that is not commu- that the wrong side may help the wrong, but the right nist is open to change by pressure, subversion, even terror. We, must not help the right." therefore, observe with keen interest that the Soviets have Society continues to look for other and perhaps better alter- withdrawn their troops from Afghanistan. Moreover, its lead- natives than war to assure peace with liberty. The Strategic ers now say - and we are encouraged to hear - they are Defense Initiative increasingly presents itself as an alternative modifying their old faith that the "irreconcilability" of our two that must here be addressed. It is defensive in intent. With our systems means the "inevitability" of war. SDI program, we are exploring through research whether we The Soviet economy is working poorly, although it does pro- can strengthen deterrence through an increased ability to cre- vide a fully functioning military and police machine. Massive ate effective defenses and thereby deny and deter an aggressor military power has provided the Soviets with a presence that from his objectives. Its appeal is that people ask of their gov- reaches all parts of the world, but this military superpower ernments that they be protected from attack, not that their cannot hide the fact that its economic and social weaknesses government be able only to avenge them after the attack. The are deep. The Soviet's awesome internal police force has pro- possibility is a real one that defense technologies, cost effec- vided continuity to its system of governance, but a Russia which tive at the margin and preferably non-nuclear, can be created. during Czarist days exported food cannot today feed its own The search, furthermore, is not ours alone. The Soviet Union people.Productivity is low. With absenteeism, corruption, and has for many years been active and successful in building up alcoholism, internal morale is bad. Contrary to trends else- its defensive capabilities. This includes, as Mr. Gorbachev has where in the world, life expectancy is actually decreasing. It is acknowledged, proceeding with an intensified program of estimated that a worker in the Soviet Union must work more research on their own version of SDI. The new reality is that than seven times as many hours as a Western Europen to'earn there can be no true security for any one country or people enough money to buy a car. One Russian recently said: "There unless there is security for all. We must learn to accept in each have been many books written on the transition from capital- of our countries a mutual responsibility for peoples in all other ism to socialism, but not one on the transition from socialism countries. to capitalism." We are negotiating. We want our negotiating efforts to pro- The new leaders of the Soviet Union are fully aware of its MAX M. KAMPELMAN 389 problems. No police cated can keep out the ideas and developments of their system is the fact they and we must still face. by satellite to all parts of the world, Our ability to influence Soviet internal developments is likely any more than it can by fiat insulate the Soviet Union from the to be limited, but we are not totally without influence. The wind currents that circle our globe. They are also aware of our Soviet Union and its people in many ways measure themselves strengths, reflecting the vitality of our values and the healthy by Western standards. The United States is the Soviet Union's dynamism of our system. principal rival, but we are also its standard for comparison. In the past six years, we have seen 17.8 million new jobs Language used by us to characterize our values, such as "human created in the United States, a 5.6 percent drop in our unem- rights" and "democracy" are adopted by the Soviets, because ployment rate to its lowest level in 14 years, a 26 percent they satisfy the deepest aspirations of the Soviet peoples as increase in real GNP per capita, and a reduced inflation rate, well. which had been at double digits, to an average of 3.4 percent. The United States negotiates with the Soviet Union in that We have every reason to be proud of our system, even with its context. We intensify our efforts, through our negotiations, to remaining inadequacies, and of the human values which gov- find a basis for understanding, stability, and peace with dignity. ern our system. To negotiate is risky. It is, in the words of Hubert Humphrey, Democracy works best. A closed, tightly-controlled society something like crossing a rapid stream by walking on slippery tied in knots by a repressive bureaucratic system, cannot com- rocks. The possibility of a fall is on every side, but it is the only pete in a world in which economic development and the cre- way to get across. ative power which it produces are all important. Rapid tech- For us, peace is not merely the absence of war. A genuine nological change, stimulated by an information explosion that and desirable peace is, to paraphrase Niebuhr, built only on knows no national boundaries, requires the vitality that comes the foundation of justice, freedom, and the rule of law. These from freedom. There is an inescapable link between human are not merely abstract ideals. These are real living values that liberty, democracy, and economic well-being. have guided our nation since its founding. We hope the time is at hand when Soviet authorities, look- All of us and our societies fall short of our aspirations. We ing at the energy of the West, comprehend that repressive grow by stretching to reach them. As we do so, however, let us societies in our day cannot achieve economic health, inner be reassured by the conviction that the future lies with free- stability, or true security. We hope Soviet leadership today dom because there can be no lasting stability in societies that realizes that its historic aim of achieving Communism through would deny it. Only freedom can release the constructive ener- violence has no place in this nuclear age. We hope Soviet gies of men and women to work toward reaching new heights. authorities will join us in making the commitment that our A human being has the capacity to aspire, to achieve, to dream, survival as a civilization depends on the mutual realization and to do. Our task is to stretch ourselves to come closer to that we must live under rules of responsible international that realization. With its realization, we not only find the path behavior. We hope - and there are encouraging signs to bol- to peace, we find peace. ster that hope. But as yet, we, regrettably, cannot trust. The major obstacle in the path toward realization is within But even as we cannot yet trust, we have a responsibility to ourselves. I not only refer to the metaphysical or to the nature ourselves to observe developments in the Soviet Union care- of man here, whatever that may be. The obstacle is also struc- fully and to do so with open eyes and an open mind. The Soviet tural. I note de Tocqueville's 19th century observation that "it Government is going through what appears to be an historical is especially in the conduct of their foreign relations that strip tease as layer after layer of deceptive myths keep getting democracies appear to be decidedly inferior to other Govern- removed and replaced with hard unpleasant truths about the ments." We must achieve the firm unifying sense of purpose, past. There have been significant changes within the U.S.S.R. steadiness, and strength that is indispensable for effective for- President Gorbachev has shown himself in a dramatic way eign policy decision making. We must insist that our political willing to reconsider past views. The words glasnost and per- community resist the temptation of partisan politics and insti- estroika have been repeated so extensively that the ideas they tutional rivalry to develop the consensus adequate to meet our represent may well take on a meaning and dynamism of their responsibilities. own which could become internally irreversible. Effective diplomacy requires the availability of power. We must challenge Soviet rhetoric into reality; and we must Indeed, it has been said that diplomacy without arms is like not fear those changes no matter how they may require us to music without instruments. But power today cannot be exer- alter our own rhetoric and modify our own perceptions. We cised effectively in our democracy without a broad consensus can welcome Soviet use of words such as "democracy" and LCD? in support of that policy. Consensus - not unanimity - "glasnost"; and even though we must remind them that their requires broad agreement and understanding between the words are too often contradicted by deeds, the continued use President and the Congress. This in turn means that our pol- of the words may create standards that will more firmly estab- icies require an identification with our country's values and lish them in their society. We welcome the news that Soviet aspirations. We are as a nation painfully coming to that real- military doctrine will in the future be a defensive one, but ization. since we have not yet seen evidence of this change in the struc- G.K. Chesterton summarized his studies of our country by ture of their forces, we must keep a healthy skepticism as we declaring that the United States is a "nation with the soul of challenge them to make the promised changes. a church." This must be understood-as-we seek the basis for President Gorbachev's task is a formidable one. The national consensus in foreign policy. We require moral justi- U.S.S.R. is not apt easily or quickly to undergo what Jonathan fications for our actions. Edwards called a "great awakening," or see a blinding light on Our political values and the character traits that have helped the road to Damascus. Their heavy bureaucratic crust of tra- us build the most dynamic and open society in recorded history dition is thick and not easily cracked. The fundamental nature is a source of inspiration to most of the world. It should be a 390 VITAL SPEECHES OF THE DAY source of inspiration for us as well. We cannot take it for Our way is best. Let us say so. What democracy promises granted. Last year, President Chaim Herzog of Israel was in and delivers is to put the fate of peoples in their own hands, Washington. In a speech before both Houses of Congress he with a chance for success, for happiness, for self-fulfillment. It sought to encourage the American people by reminding us is not arrogant for us to proclaim the virtues or our own system that we have every right to be proud of our country and our because it casts no credit on us. We are not the ones who democracy. There are, he said, hundreds of millions of people created American democracy. We are merely its beneficiaries in our world "who suffer bondage, inhumanity, poverty." They with an opportunity to strengthen it for succeeding genera- "have never known and do not experience the gifts of human tions. It is only understandable, furthermore, for us to wish freedom." To these people, the United States is "a shining similar blessings for other peoples. beacon of hope." They draw courage and inspiration from our Abraham Lincoln in his day said that "America is the last moral fabric. These people, he urged us to remember, realize great home of mankind." It still is. Our political values have what the American dream means to the world. helped us build the most dynamic and open society in recorded Let us not forget our good fortune as Americans. Democ- history, a source of inspiration to most of the world. It is a racy is a great ideal and deserves passionate devotion. It promise of a better tomorrow for the hundreds of millions of is the political embodiment of our religious values. In fulfill- people who have not known the gifts of human freedom. The ing our responsibility as citizens of this democracy, there is no future lies with liberty, human digity, and democracy. To pre- room for moral neutrality. The idea that somehow power is serve and expand these values is our special responsibility. We bad, that superpowers are worse, with one superpower more or cannot escape that burden. But more than a burden and less as bad as the other, is a nihilistic formula for defeat. There responsibility, we should look upon it as an exciting opportu- is an unmistakable difference between a prison yard and a nity. meadow. Thank you. The Deficit Time Bomb THE PROBLEM THAT WON'T GO AWAY By J. PETER GRACE, Chairman, President and Chief Executive Officer, W. R. Grace & Co. Delivered to the Economic Club of Detroit, Detroit, Michigan, March 13, 1989 T HANK YOU very much, Ted. It's a great privilege to be Now our company had a pretty good year in 1988, with invited back - almost four years to the day - since I earnings per share up 35.5 percent. However, we would have last addressed this prestigious forum. The last time I reported a great year if we could have ignored one third of our was here, I got bumped. I was told, "Forget it, we don't want interest expense. Rightly so, the law says we can't do that. But you, we've got somebody else." for the Government it's "do as I say not as I do." They simply When that "somebody else" turned out to be President ignore any interest owed and forming an essential part of gov- Reagan, I didn't feel so bad. And I was invited back a few ernment trust funds like Social Security and Civil Service weeks later anyway. retirement. So now I'm expecting President Bush to show up at any If we add back interest owed to Federal trust funds, the moment. deficit of $161 billion in 1989 rises to $212 billion, $51 billion I'm here today to talk about one of today's three great lies. or 31.7 percent more. The two lies I won't go into now are: Apparently, the Government feels that what we don't know (1) Your check is in the mail; and won't hurt us. This may be true. Ignoring the deficit may not (2) I'm from the Government and I'm here to help you. hurt us but it certainly must hurt our children or our grand- The lie I would like to talk about says "the Federal deficit children. And this brings me back to the second defense of doesn't matter." People who say this point to two facts. "the deficit doesn't matter" crowd, which is that, despite the (1) The deficit is declining in nominal terms (from a peak deficits, we've had six years of steady economic growth. of $221 billion in 1986 to $161 billion in the current year) and Refuting this argument requires more intuitive than empir- in real terms (from a peak of 6.3 percent of GNP in 1983 to 3.2 ical evidence. For example, does anyone in this audience percent in 1989); and believe that the Federal debt, which has grown at an average (2) Despite the massive deficits we've had since 1982, the rate of more than $250 billion per year over the past four years economy has chugged along, growing at an average 4.0 percent to $2.9 trillion, won't ultimately have disastrous consequences? annual clip from 1982-1988, one of the longest sustained This year 56 cents of every dollar paid by individual tax- expansions on record. payers will be used to service the Government's debt burden. To refute point (1) is simple. The deficit is declining because By comparison, in 1979 only 28 cents of individual tax receipts the Government ignores much of its most rapidly growing was required for Federal debt service. Therefore, the burden major area of expense - which is interest. For example, in of Federal debt service on taxpayers has doubled in just ten 1989 the Government reports its interest expense will be $165.7 years. If we continue this course, by the turn of the century, billion. In reality, the Government will spend $238.9 billion to more than 100 percent of every dollar you pay in taxes will be cover interest on its debt this year, $73.2 billion or 44.2 percent required to meet the Government's interest bill. For your tax more than reported. dollars, you'll get no Air Force, no FBI, no National Park STANLEY GAULT OF GOODYEAR nancial orld® Bank Bailouts: No Limitto Taxpayer Liability? Can "Wolfpacks" Save Cincinnati Milacron? Curbing Abusive Limited the Partnership Rollups 13 02583 ceoyear 0 842456 3 New American Schools Development Corporation DISING SECTION 70 FW MARCH 31, 1992 NEW AMERICAN SCHOOLS Break the Mold A TALK WITH LAMAR ALEXANDER AND DAVID KEARNS HE WORLD HAS CHANGED AND ly the same as it was in 1970. We spent all the Eighties 1 our schools haven't" states talking about it and not getting anywhere. We have prob- ably 200, 300, 500 good programs going on around the Education Secretary Lamar country. What we have got to do is take the ideas that look Alexander. "Our schools are in as if they will really work and stitch them together, to move the whole system forward. a sort of time warp. The family "Because the second point is that, with all the activities and the community have changed, but we've got going now. the Japanese and the Northern Euro- peans are improving their school systems at a faster rate the way our children learn has not." than we are-the gap is getting wider, not smaller." Schools in the rest of the world Alexander likes the potential of the new strategy. "We believe that if thousands of communities begin to create have kept up, however, and American schools now lag bad- truly New American Schools, that there will be a line around ly. So, comments Deputy Secretary David Kearns: "What the block a mile long of families who want their children I like to say is: How do you leapfrog the East Asians and to attend these schools," he exclaims. "That, in turn, will the Northern Europeans? Not try to be just as good as they force all schools to increase their rethinking of what they are. I am rather offended by the concept of striving for a school system as good as the Japanese. Why shouldn't we have the best school system in the whole world? And one that is uniquely American?" "We have learned during the I980s that trying to fix schools piece by piece doesn't work very well," Alexander points out. "The system is not just in one rut-it has fallen into several deep ruts. And almost all of the energy and enthusiasm for change can be exhausted just trying to gain agreement about fixing one. "Sometimes it is easier to start over," he suggests. And that is what The New American Schools Development Cor- poration has been created to do. "There are a great many wonderful innovations in education, and many people have started to fix whole schools, with great success," Alexander acknowledges. "But we are talking about literally starting over to break the mold, to fix whole schools from scratch." Kearns amplifies: "To those who claim that they are already doing good work on helping the schools, and that Lamar Alexander and David Kearns we don't need a project as big as New American Schools, I have two things to say. One, we have made absolutely This section was developed, written and edited by no progress. The output coming out of the schools is exact- Willard C. Rappleye Jr., FW Special Projects Editor. TISING SECTIC 74 FW MARCH 31, 1992 NEW AMERICAN SCHOOLS were doing and be a powerful incentive to make the radical to rethink what we are doing, change our attitudes and changes in the education system that will be necessary to values, get our feet more firmly on the ground. and be help this country reach the six national education goals by prepared to compete in a very different world. the year 2000. "Too many Americans have assumed that what was good "The New American Schools Development Corporation enough for them in school was good enough for their is a private, independent corporation separate from the U.S. children," Alexander declares. "That's simply not true. government," he explains. "But it is an integral part of the "So the whole basis of our education strategy is to help AMERICA 2000 education strategy that begins with the six people realize how the world has changed, that it will take national education goals which the governors and the Presi- a radical set of adjustments in our schools and in our accep- dent agreed upon in 1989. at the education summit in tance of educational responsibilities at home, to fit ourselves Charlottesville. The goals include all children arriving at in those changes, and then to get on with it. school ready to learn, a 90% high school graduation rate, "That's why the President worked with the governors to all children learning a core academic curriculum to world- create for the first time in America's history the national class standards. first in math and science as a goal for education goals. That is why we're working with educators American students, a literate skilled work force, and. finally, to create a consensus about world-class standards in math. drug-free and violence-free schools." science, English. history and geography. That is why we're working with states to change their curriculum frameworks. EARNS KNOWS THAT NASDC HAS TO BUILD That is why we are seeking to create a series of American K a bigger, more urgent constituency. The Achievement Tests so communities and parents can know question of universal high standards, for how their children and schools are doing, whether the example, has "some poor communities children are learning so that they can live, work and com- very worried. IfI were in one, I would love pete in a world that includes children from Seoul and Tokyo to ask them: 'You mean for your commu- and Hamburg and Budapest. That is why we want to give nity you're suggesting low standards? teachers much more flexibility in the classroom and the What you need are the highest standards." Then I would spending of federal money. why the President has proposed say we should work together to build a system for your com- one million "opportunity scholarships' to give middle- and munity that will be different from a system for a rich one, low-income families more of the same choices of schools but the standards must be just as high, or else the com- that wealthy people already have. munity will always stay poor. What we are really trying to "And that is why we are encouraging communities to accomplish is to give poor people the same chances that create thousands of New American Schools." rich people have." The needs of the school system are daunting, Alexander Initial support for NASDC has been encouraging, with acknowledges. "Standards and curriculum are out of date. upwards of $40 million already raised, toward its goal of schools are uninteresting. Children watch too much TV. $200 million over four or five years. Kearns admits that he parents are too busy to keep up with what is going on. has to overcome some reluctance on the part of companies Teachers are untrained in many subjects. And, more than that believe they are already doing all they can. "We have anything else, we probably have lower expectations for our to convince them that we are not trying to compete with children than, for example. Asian parents do. all the good things they are doing out there, and somehow "None of this should cause the U.S. to hang its head and dilute their efforts." But many understand "that this is a wring its hands," he insists. "We are perfectly capable. in one-time request, to give us the leverage to make us the best fact more capable than any other country in the world. of in the world"-like Alcoa, which contributed $1 million. educating all of our citizens to a higher standard. We are Chairman Paul O'Neill told Kearns: "I don't even want to still the country with 25% of all the world's wealth. We debate that. This is the best damn idea I know about." And already spend more per student on elementary and second- many others have promised to join in, once they have seen ary than any other country except Switzerland. We have results; on the whole, Kearns professes to be "extraordinari- the best system of higher education in the world today. We ly encouraged" by financial support to date. simply need to focus our attention, marshal our enormous "The greatest obstacle to America's future is complacen- capacity for reinvention on elementary education and realize cy," Alexander points out, "the feeling in America that the that it involves not only fixing the schools but fixing our at- nation is at risk, but I'm OK. titudes at home and in the community. "That is gradually beginning to change," he contends. "That is what AMERICA 2000 is all about," he concludes. "Americans are uneasy, because we are now beginning to "And the idea of the New American School-starting from realize as a nation what most businesses began to feel in scratch to create thousands of new schools that are among the early Eighties. World competition is causing all of us the best in the world-is at the core of what we are trying to do." 76 FW MARCH 31, 1992 NEW AMERICAN SCHOOLS R&D for the System CEOs' EVALUATION REPORTS HE PROBLEMS OF AMERICAN ; a high place on the national agenda. Д schools have been a shifting "Now when Bush says he wants to be the Education kaleidoscope of discovery President, wants to lead the system into improvement. to state the need and set the direction, it is in a leadership and response, which only role, not in a sense of command and control," Whitmore emphasizes. "I see no conflict in that with our traditional now is coming under pow- practices." erful lenses to focus change. The problem has forced its way to the top of the national Political leadership is being agenda, he observes. "We" ve got a serious, serious disaster on our hands. It is not just a problem of the inner cities. exercised, starting at the top with If that was all it was, we could focus on that and raise the direction from President George Bush and extending to the worst kids up. But that is not the whole problem. The organized efforts of state governors under the vigorous problem is that there is not a school in this country that has high enough expectations." Whitmore declares. "We administration of Roy Romer of Colorado. Remarkably, among all the institutions concerned, including the education do not have world-class expectations of our very best kids. establishment itself, the U.S. business community has moved Yet that is what we have to have if we are going to survive. to the forefront in recognizing the problems and proposing solutions. It has done so in various forms of creativity, commitment and effectiveness, but with a cumulative and increasing energy that bodes well for the future. The newest, and potentially the most powerful, of these lenses for change is the New American Schools Development Corporation. Created last summer at Bush's behest and funded by corporate contributions, it applies the classic business practice of finding solutions to persistent problems by assigning start-up research. In the words of RJR Nabisco Chairman Louis V. Gerstner Jr., who is also vice chairman of NASDC, it is "R&D for the schools." Kay R. Whitmore, chairman of Eastman Kodak, and a director of NASDC, welcomes Bush's unprecedented assertion Louis V. Gerstner Jr., RJR Nabisco of leadership. "This nation decided 200 years ago that the President should have nothing to do with education," he notes. "We have always had a dispersed educational system, INNER-CITY KIDS HAVE A RIGHT which has historically been left to the states and the local TO BE HELD ACCOUNTABLE TO THE school boards. That is still our basic philosophy-which was SAME HIGH STANDARDS AS RICH fine until now, when the problems in our schools have taken KIDS IN THE SUBURBS. TISING SE 78 FW MARCH 31, 1992 NEW AMERICAN SCHOOLS "The best thing Bush has done for education is to name Lamar Alexander as secretary and David Kearns as his concept that the private sector would step in without all the deputy, to establish high national expectations of our inhibitions and bureaucracy and regulations to see if there education system." couldn't be some experimental work done on what the To do that, they are pushing the New Schools idea. "Is education system should look like. to innovate and that going to solve the problem?" Whitmore asks. experiment, for better ways to deliver education. That's what "Absolutely not. got me involved. "Is it going to make sure that everything changes? "As a nation, we have a real problem with an underclass Absolutely not. Does it say that in some cases we ought to that is growing much more rapidly than in any previous go off and just completely break the mold? Recognize that period, and perpetuating itself." Jones warns. "Education. we have a system that was generated to work for the farm which used to be the ticket up and out. is not doing that job. communities of the 1900s, that we are having some trouble "The value of the New American Schools idea," he points breaking away from? Yes," he says. out, "is that it takes the shackles off and says: Let's open "Let's go in and try some experimental things that are our minds and think big to make education something that more bold than what we would normally be doing, and let's improves the productivity, the competitiveness, the quality develop some entirely new schools. of all the students going through the system." "It" a piece-I think an effective piece-of a very broad James J. Renier, chairman of Honevwell Inc., and an puzzle." NASDC director, concedes that business "has been involved James R. Jones, chairman of the American Stock with education for years. But I don't think that business. Exchange, and an NASDC director, is "intrigued by the even today, really understands the extent of the need that exists in public education. It was not until the publication of TAXING Can cities find sources of EDS helped Chicago answer a definite yes. Because drivers now take parking Using new applications of information tickets that they receive more seriously, technology, EDS is helping Chicago col- traffic flow has improved measur- lect $420 million in unpaid parking tick- ably throughout Chicago. According to ets. In less than a year, annual ticket Chicago officials, the whole program is revenues have increased by 50%. Plus, a victory for the city and its citizens. revenue has nearly doubled from EDS helped the city completely parking meter collections. reengineer its parking program. Now, EDS is a registered trademark of Electronic Data Systems Corporation. © 1992 EDS NEW AMERICAN SCHOOLS A. Nation at Risk in 1983 that the crescendo started to build. agenda in the schools have caused what appears to be great And it was not until four or five years ago that the problems for one city or town, to turn out to be irrelevant for another. of education really hit business hard." "That has been a problem. But we could solve it if NASDC NASDC now comes on as a true expression of best could institutionalize the discoveries." corporate practice. he finds. "Just as I don't run the business John L. Clendenin, chairman of BellSouth. and an of the divisions of this company-I set strategies. I set the NASDC director, sees a need for long-term Presidential vision and assign corporate R&D to help determine the future commitment. He was one of a group of CEOs who told Bush direction in which we are going-and, definitely, to set the shortly before the Education Summit: "You are not going vision for the future. That was missing before." to solve this problem. No single American President is going The function of the NASDC board will be "to preserve to be in office long enough to solve it. This may take two the integrity of the entire process." Renier declares, "so as or three or four presidencies." to bring out the creativity, with the hope that this giant system During recent years, "the education arena has become out here will be interested in picking up the technology, and one of high urgency for a lot of business people." he observes. doing something with it. Because one thing we discovered "as a matter of survival. We ve got to fix the public education in all the previous studies-there were thousands and thousands of initiatives between industries and schools and system to turn out the kind of workforce that is going to be required as the information age and the high-technology world nothing being institutionalized of any significance. spirals forward. "For two big reasons." he believes. "One, a lot of the "We've all come to the conclusion that routine change time the people who have to implement the ideas have no is not going to solve this. We're going to have to come up ownership of the process. And two. the extremes of the social with some new ideas and applications. Yet the bureaucracy ADVERTIS UESTION: 'evenue other than taxes? hand-held computers are used to record Conveniently located hearing centers EDS, the world leader in applying and print out tickets on the spot. The use imaging technology so citizens can information technology. Write Barry W. information is automatically uploaded resolve violations faster-by phone, mail Sullivan, Director of to a central computer, resulting in a or in person. No more long waits Marketing, EDS. 7171 faster collection process. in traffic court. And, the city is provid- Forest Lane, FW1. EDS A computer mapping system helps ing citizens a valuable service. Dallas, TX 75230. Or locate and solve parking problems, New technology is creating many call (214) 490-2000. dramatically improving traffic flow. opportunities. To learn more, contact TAKE ADVANTAGE OF CHANGESM NEW AMERICAN SCHOOLS of our typical school organization doesn't lend itself to funding look at the governments in this country. the business new ideas. innovative solutions. new concepts. trials. You've community. the labor unions. the churches-for 20 years got to have a risk-capital source in order to do that." they ve been wrestling with modernity. and the problems of Clendenin insists. "We need a way to look at some bringing themselves up to the demands of the current world. educational approaches that are different from run-of-the- "Some of them are doing better than others." Gerstner- mill efforts." acknowledges. "The public education system. though. has probably done least well in its adaptation to change. for a HAT IS WHAT NASDC WILL PROVIDE. HE BE- lot of reasons. A lieves. "Then. after the effort has proven to "Most institutions do not change unless pressure comes be meritorious. it has got to be put in and from outside." he emphasizes. "Typically. businesses change be absorbed by the school systems. As the because they have shareholders. they have boards. a new ideas work. and availability and marketplace. But the educational establishment is controlled awareness and knowledge about these new by the establishment itself. and it is frightened by the prospect techniques spread through the educational of change." system. a slow 10- or 20-year process will evolve that will Even business as a whole. with all its individual corporate bootstrap America's education system up." efforts. has not accepted the responsibility of insisting upon RJR Nabisco's Gerstner recognizes the difficulty of making major change in education. Gerstner charges. Most of its changes in the existing system. and the urgency of making efforts have been to support the system as it exists. and hardly good ones as fast as possible: he is looking to NASDC as any of its leaders are prepared to turn the whole system upside a powerful agent. once it produces models. Many businesses down. which is what he contends it needs. are already working with the schools on new programs. he "That brings us to NASDC." he savs. "One way to deal points out. but even the most successful programs do not with the bureaucracy. the problem of changing an existing transfer easilv. "Unfortunately. education is a local industrv." institution. is to totally redesign the learning environments he notes. "not a national industry. It's not three automobile for the future. That is what the role of government should companies. not six steel companies. not 15 food companies. be. It ought to be responsible for R&D. What Lamar and It's thousands of school districts. all autonomous. David have designed is a program in which we can go to "You're talking about a local business that has got to be the best minds to design the learning environment for the changed. schoolhouse by schoolhouse. district by district. state 21st century. That's classic R&D. bv state. And the fundamental problem with schools is like "Business should support this sort of thing because it the problem with a lot of institutions in this country: They've understands the need to develop prototypes. to develop R&D. gotten a little ossified and unresponsive to the last quarter to develop new ways to think about business." Gerstner of the 20th century. let alone the start of the 21st. As you contends. "The great buzzword of American industry today Kay R. Whitmore, Eastman Kodak James R. Jones, American Stock Exchange THE PROBLEM IS THAT THERE IS EDUCATION, WHICH USED TO BE NOT A SCHOOL ANYWHERE IN THIS THE TICKET UP AND OUT OF THE COUNTRY THAT HAS HIGH ENOUGH UNDERCLASS, IS NOT DOING THAT EXPECTATIONS. JOB TODAY. 82 FW MARCH 31. 1992 NEW AMERICAN SCHOOLS is re-engineering systems. Well. that is what we need to do to educate everybody in the state on what it means." with the schools. To Ashland, that is a lot. "We were just generally "It's like when people go out and build a new factory- dissatisfied with the situation," Hall recalls. "We tried to they benchmark. So if we could get the educational transfer employees from out of state into Kentucky and they institutions thinking that way and give them some models didn't want to come because the school svstem was so bad. of what a school in the 21st century should look like. that's So when we got this reform, we jumped into supporting it what NASDC can do." big time with a lot of advertising, and speeches and meetings. Gerstner knows that fear of standardization will be one and a school bus that we outfitted with exhibits that we send of the obstacles to widespread adoption of NASDC models, out to every county in the state. to raise awareness in support but rejects that argument "as an enormous red herring of the new programs. thrown out by people who don't want to change the system. "There is no perfect standard in anything," he exclaims. UR GOAL IS TO LIFT OUR SCHOOL SYSTEM UP We all have to manage in an imperfect world. And having should a child in Wisconsin not know as much about O to where it's going to be graduating people said that. I tell you that I believe that in most subjects-not who can go on to college. or technical school. just math-it is not impossible to get a group of educators or right into the work force," he explains. together to determine what children should learn. Why The process is simple. and could set examples in some respects for New Schools American history as a child in Virginia? proposals. For instance, he savs: "We want "There's a lot of discrimination in some of those to get every kid into kindergarten," which would be a dramatic comments. too: Why should we be giving these inner-city step forward. "We are going to try to have local school im- kids the same standards as these rich kids in the suburbs? provement councils, but whether we do or don't, we will have It's going to hurt them." Baloney: to say that inner-city kids a very formal system of testing, at 4th, 8th and 12th grade. can perform is outrageous. They have a right to be held If a school doesn't improve the composite of those test scores. accountable to the same high standards." that school will be penalized-in fact, the whole school board John R. Hall. chairman of Ashland Oil, and a director may be taken out of office. And if a school shows constant of NASDC. has been getting a good preview of what improvement, it will be given more money." corporations could accomplish: In his home state of James K. Baker, chairman of Arvin Industries, and a vice Kentucky. the legislature passed the most extensive school chairman of NASDC, has been working on the education reform program in the U.S. in the wake of a 1990 state problem at the corporate and state level for years. because Supreme Court decision that the existing system was he perceives it as an overwhelming threat to society. rather unconstitutional. "Now we're involved, along with LPS and than one of world competitiveness, as so many businessmen Humana. in what we call the Kentucky Partnership. trying do. "I can tell you that business is going to be competitive. James J. Renier, Honeywell Inc. John L. Clendenin, BellSouth THE BOARD MUST PRESERVE THE FOR A BUREAUCRACY THAT DOES INTEGRITY OF THE PROCESS, NOT FUND INNOVATIVE SOLUTIONS, BRING OUT CREATIVITY, A RISK-CAPITAL SOURCE IS INSTITUTIONALIZE DISCOVERIES. REQUIRED. 84 FW MARCH 31, 1992 NEW AMERICAN SCHOOLS no matter what happens to the schools." he contends. "We through a carefully organized company-v ide program of find the people to do the jobs. They may be coming in on individual mentoring. "We wondered what we could do a boat: or we can put the work on a boat to send to them. to have a maximum impact." savs Chairman Lester M. Or I can hire anybody I want for any job. right here in Indiana. Alberthal. "even though we didn't feel that we could define I don't think it's a competitive issue. And that's where I differ the nationwide program that was going to solve all these ills. from most business people." "But we did feel that there were two things we could do. One was to heighten the awareness of our own em- HE HEART OF THE PROBLEM IS SOCIETAL. ployees who were young parents. or planning to be parents. 1 Baker emphasizes. "We have to reach out to see the importance of the parent in the education for the kids who feel that the system has done process. And we wanted to try to make a difference to as them wrong-kids who haven't been able to many kids in the schools as we could who lacked good find their way. got turned off and were never parental influence. Now. we know we are not going to solve brought back into the svstem-who every kid's family problem. But we did feel that we represent tomorrow are going to be wards of the state. a resource that. when applied individually, could be helpful The terrible thing is, the kids are right." he exclaims. "The in many cases. system has not done right. to nurture. to preserve them as "So we went into schools in districts where we are a very good investment. We have failed to do it." operating-and there is a whole set of rationales on how He envisions the New American Schools process as a great we picked them-and formed partnerships to put our engine to reward the reformers who make the patterns that resources-these volunteers-to work with them to make will encourage others to join in. creating and reinforcing the school better. Each program is pretty much tailored to local change. what the principal or superintendent and some of our key "You know." he adds. "for a national government initia- people decide is best to do. And. without exception. a major tive. I have higher hopes of this working than anything I've part of every partnership is a commitment to memoring. seen. It says to us that a government Department. like "It's really K through 8. for the most effect." Alberthal Education, which certainly has funding every year. ought points out. "because by the time they reach 8th grade. if to involve itself very deeply in research, just like NASA or they haven't had some positive influence somewhere. it NIH. We are setting up to do the research that should have going to be that much more difficult to reach them. been taking place all along." "I don't know any other way. You can't hire enough Many other corporations that are not members of NASDC psychologists: you can't assign enough social workers: you have already identified specific problems in the schools. and can't have every teacher educated in all these things. What have launched bold ventures to deal with them. it really boils down to is that a kid needs to feel that someone EDS Corp. has decided to concentrate on the children. cares. And if they don't have that at home. and they are John R. Hall, Ashland Oil James K. Baker, Arvin Industries IF A SCHOOL DOESN'T IMPROVE ITS FOR THE KIDS WHO FEEL THAT COMPOSITE TEST SCORES, THE THE SYSTEM HAS DONE THEM WHOLE SCHOOL BOARD MAY BE WRONG, THE TERRIBLE THING IS, TAKEN OUT OF OFFICE. THEY ARE RIGHT. 86 FW MARCH 31. 1992 NEW AMERICAN SCHOOLS part of a big class so they can't get it at school, then that School; Stay off Drugs" program, along with extensive is something we can offer. mentoring and tutoring activities by soldiers and their families "You know, we put a lot of emphasis on our employees- to help individual students. our biggest resource. our biggest asset; our thinking was that Wincup attributes the high quality of recruits these davs would probably be our maximum contribution. We can have in large measure to improved techniques. from "essentially an impact that's probably a lot more than throwing money not knowing how to recruit. in 1973, because they just took at a problem, and the side benefit is that we get a plus out volunteers and draftees, to a thoroughly sophisticated of it for our employees, SO it's a morale issue. And, if it's operation, right on through market analysis." augmented good for the kids and it's good for our employees--well, by substantial college-entitlement incentives, "which appeals you know there's not many win/win situations in this day to the parents and influencers like crazy." The combination and age." of reduced demand and improved technique has resulted John V. Roach, chairman of Tandy Corp., focuses on in the Army recruiting a constantly improving quality of motivation of both students and teachers in the high schools youngsters coming out of the school system. through a company-sponsored program, which emerged from modest origins in the Fort Worth school district and ICHARD M. ROSENBERG. CHAIRMAN OF BANK- was expanded in 1989 into the Tandy Technology Scholars. R America, speaks for a number of CEOs who This recognizes the top 100 students and the top 100 teachers believe that what they are already doing in math and science around the U.S.; about 12,000 high represents as much of a commitment to schools now participate. "We're very satisfied with the pro- solving the problems of the schools as gram." Roach asserts. "You know. the whole education issue anything that they might be able to con- is so complex, and we certainly understand the arguments tribute by supporting NASDC, and that for the preschoolers and the lower-school problems, and they are already producing impressive results. for the students who are not in this top percentage that we Rosenberg is enthusiastic about how the bank puts its are really shooting at. but certainly there has been a lot of resources to work on specific needs of the schools and the response to just recognizing the champions of the classroom." children. He cites the success of classes that volunteers from From a purely practical standpoint. G. Kim Wincup, Assis- the company run every year in its computer rooms for an tant Secretary of the Army for Manpower and Reserve Affairs, Explorer Scout troop of inner-citv bovs and girls. "The kids looks upon the school system as the primary source for learn how to program an IBM PC. They get a lecture on recruits, and finds the "quality of the production base" to careers in banking-the kind of job they could do with a be good. high-school diploma. These are kids who have never seen The recruiting establishment has been very aggressive in a PC before in their lives. Not in their schools. and certainly trying to improve the schools through a major "Stay in not in their homes. And they love it. It has been very. very Lester M. Alberthal, EDS Corp. John V. Roach, Tandy Corp. KIDS NEED TO FEEL THAT SATISFACTION IN A SOMEONE CARES, AND IF THEY LOT OF RESPONSE CANT GET THAT AT HOME, IT IS TO JUST RECOGNIZING SOMETHING WE CAN OFFER. CHAMPIONS OF THE CLASSROOM. 88 FW MARCH 31, 1992 NEW AMERICAN SCHOOLS successful." can do is to get ideas into focus. and demonstrate support Rosenberg describes the way the bank, along with IBM, from the President and from leaders throughout the U.S. offers all newly appointed high school principals the same The important thing is getting commitment. because almost kind of management training programs it provides its own anything will be positive if you can get people rallied "round." executives. "They ve never had that kind of training. They've And then, once the public has come to care enough. and been teachers. We help them become managers. the new examples of successful programs become more "What we have done." Rosenberg observes, "is work out visible, he suggests, replication will happen "through a variety of programs with individual schools and districts, demand pull." to help effect change. So we are quite sympathetic to the While McDonnell Douglas is not a member of NASDC. goals of NASDC. But we're not quite sure that an overall it will be supporting one of the proposals for a grant through umbrella is the only route. and therefore we have to be a citywide initiative led by Sanford N. McDonnell. former somewhat judicious in our response. We cannot support some chairman of the company. and cousin of the incumbent. national program to the exclusion of all the programs that "So it was natural that when he asked if we would be willing we are evolving in California." to be a sponsor, we said yes." ARCO has taken the lead in an alliance of diverse Los OHN MCDONNELL. CHAIRMAN OF MCDONNELL Angeles institutions to think through. create and set in motion J Douglas. is troubled that education is not a top a system-wide program to restructure the city's schools. which priority of most Americans at this point. And could. in itself. serve as one of models NASDC hopes to until parents take education as a top priority, produce. we can do all sorts of innovative things. and it Remarkably. savs Robert E. Wycoff. ARCO's president is not going to get spread around." and chief operating officer. the members of the alliance. McDonnell Douglas has taken a serious look who had all been working independently on the problem at the problems in its hometown of St. Louis. increasing for years, found that once they joined together. there was its commitment to improving K-12 education there from little disagreement on what to do. "Out of all the experience. $10.000 four years ago to nearly $700.000 today. drawing and the stacks of studies. we all had similar programs. so from other sectors of its corporate annual-contributions that all we had to do was put them together. The only budget of S8 million to S9 million. "But we have been going difference was that some had them organized A. B. C. and out in a number of directions." he acknowledges. "We have others had them B. C. A. not vet figured out a really good focus within the area to "And that's true nationwide. if you really look at it." Wycoff know what we should be doing." observes. "There is hardly anybody that doesn't agree on For that reason. the premise of New American Schools what a school ought to look like. The trick is getting there. has considerable appeal. McDonnell states. "What NASDC "Oddly enough. during a year of operation. we have not G. Kim Wincup. Assistant Secretary of the Army Richard M. Rosenberg, BankAmerica INVOLVEMENT, MARKET ANALYSIS, SYMPATHETIC-BUT NOT TO THE COLLEGE INCENTIVES, KEEP ON EXCLUSION OF EVOLVING RAISING THE QUALITY OF THE PROGRAMS WITH INDIVIDUAL RECRUITERS' PRODUCTION BASE. SCHOOLS AND DISTRICTS. 90 FW MARCH 31. 1992 NEW AMERICAN SCHOOLS encountered any resistance." Wycoff notes. "Inertia, yes. so new that you might consider it one of the I.boratory models That is bound to be a big force in a district of more than they are trying to create, so to speak." 600.000 students. But aside from that, not any opposition. George M. C. Fisher, chairman of Motorola, is more We would have expected. naturally. that people who would sanguine than most over the progress being made. "I'm be directly affected by the change-administrators, some one of those optimists who thinks that out of all this fer- teachers-would present some opposition. And they still ment there will be a lot of good ideas, and out of those may. But so far the school boards. the heads of the schools good ideas will come systemic change, and we will solve themselves. the head of the union, are all in support." this problem," he maintains. "Right now, I am a person The Los Angeles plan has seven parts. First is governance, who believes we are over the worst part. Not all has been "which would turn upside down this top-directed central done that needs to be done," he acknowledges, "but that system. and empower the schools themselves, basically by will happen in time." funding the schools directly instead of funding the district, thus allowing the schools to control their own budgets." NE OF THE RESERVATIONS FISHER HAS WITH Second is accountability. "a system of assessing progress a series of interim measures such as attendance, graduation O the NASDC approach. he says, "is that there by determining how well the kids are learning, at first through are pockets of excellence in our education system everywhere you turn, even as you rates. how parents and teachers feel about the system, security find that the biggest deficiencies are in the and. eventually. as the system takes hold. the whole range poorer areas. especially the poor urban areas. of things that need to be measured. like college entry and That is why I have problems with the broad the quality of the jobs students get." brush approach, where everybody gets a little bit better. The other elements are management training for prin- I think the great opportunities are to bring up the ones that cipals: parental involvement and supplementary mentoring; are way low. school facilities. including not only technology, but actually "I don't think you can lay the entire blame for our loss working through the maze of real-estate law and practice of competitiveness-and I use that term very generally- to acquire perfectly usable buildings that are now standing on K-12 education," declares Fisher, who is also chairman empty: social services. with emphasis on student health and of the Council on Competitiveness. "I think that is a cop-out." safetv: and emphasis on the connection between school and The real corporate challenge in education comes after making a good living after graduation. K-12, he explains. "What companies have to come to grips As I understand the New American Schools program, with is the recognition that they have about three times as it is focused on tomorrow. whereas we are more interested many years for employees' education and training as the in fixing the existing system. Actually," Wycoff points out, employees have had in school. In high-tech companies like "it may be that the sum of all the things we are doing is ours, we would say that the half-life of education of one of John F. McDonnell, McDonnell Douglas Robert E. Wycoff, ARCO ONCE THE EXAMPLES OF THE SUM OF ALL WE ARE DOING IS SUCCESSFUL PROGRAMS BECOME SO NEW THAT IT MIGHT BE VISIBLE, REPLICATION WILL CONSIDERED ONE OF THEIR HAPPEN THROUGH DEMAND PULL. LABORATORY MODELS. 92 FW MARCH 31, 1992 NEW AMERICAN SCHOOLS our technical people is something on the order of two to ultimately install in the marketplace. Same problem. five years. So if you don't continue to replenish the education "I look upon NASDC as an R&D arm. What Lamar is of the ones you have. you have to go out and get a crop doing is trying to get the private sector interested in this. of new young people. whom you have to indoctrinate into in terms of money, and the energy of the people. I think your culture. and they have to learn the business, which is he majors in "create," getting them to start fresh. Although a very expensive way of doing it. It's better if you believe I'm not so sure it will be quite as clean a sheet of paper that the people you ve got are a valuable asset in whom as he thinks." Akers predicts-"they are going to bring in you continue to invest-who. like property, get more and quite a few things that have worked. more valuable." "At IBM, we were interested in the proposition. We know something about R&D: we don't know so much about OHN F. AKERS. CHAIRMAN OF IBM. BRINGS UNIQUE education. The more we thought about it, the more we J perspective to NASDC. While the company is realized how little we knew. We concluded we ought to work not a member of NASDC. it has committed in a multiplicity of proposals. all over the country, in various $3 million in cash and $3 million in kind to its projects. So we are partners with perhaps a dozen groups work. Also. as chairman of the Business who will compete for the New American Schools Roundtable Education Task Force (BRT), for the Development grants. I think that is playing to our strengths. past two years he has been working with gov- because it's already ongoing stuff." ernors and state legislatures to create the political structure Akers comes around to the matter of leadership. --I don't and impetus for school reform. recall any previous president talking about education the Akers thinks "our two efforts are very simpatico." NASDC way Bush has. don't remember any other such organized is setting up to do research at the grass roots level. "because approach to the problem. There was no America 2000. that is the wav you are going to affect what goes on with There was no Lamar Alexander in the Department. There the student. while the BRT effort is to create a policy platform was no private-sector R&D program." upon which to replicate the models NASDC will create." He recalls the BRT meeting in June 1989. where education Replication, key as it is to success in reform, needs all was the only topic and Bush the only speaker. "He was very the structural support BRT can give it, he emphasizes. "It's complimentary about IBM and Xerox and this company going to be hard. very hard. but just as in business, that and that company. and that we had all been able to doesn't mean you ought not to invest in research activity, demonstrate that we were active in the field. Then he said: to establish any number of options that might be attractive. 'That's not good enough. I challenge you guys to do I spend a lot of my time with our research people. who are something more." totally frustrated as to how you transfer good ideas from "Well, we have. And I think we ought to be kind of pleased a research environment to the product that people will with the quality of leadership we have been given." George M.C. Fisher, Motorola John F. Akers, IBM TO LAY THE ENTIRE BLAME FOR AND THEN THE PRESIDENT SAID: OUR LOSS OF COMPETITIVENESS "THAT'S NOT GOOD ENOUGH. I ON K-12 EDUCATION- CHALLENGE YOU GUYS TO DO THAT IS A COP-OUT. SOMETHING MORE." THE ATLANTIC MONTHLY Fred Bergsten, of the Institute for International Econom- that of most economists, according to Edward Yardeni, ics, in Washington, D.C., worry about the tendency of the chief economist at Prudential-Bache Securities, who Washington's persistent budget deficits to leach away is one of the most vocal of the optimists, is that main- savings, drive up consumption, and suck in imports. Un- stream economics focuses too much on formal macroeco- less America takes hold of its economic destiny, they nomic models. "Most economists don't look much at the warn, the future offers a choice of horrors. Feckless con- real economy," Yardeni says. "It's messy and doesn't sumerism might ignite runaway inflation, or the Federal translate well to models. But when you stop and look, the Reserve might jack up interest rates so high-both to case for a long-run boom is almost overwhelming." head off inflation and to attract foreign savings to float the The optimists' arguments reduce essentially to three. buying spree-that it will cause a worldwide recession. The first is the integration of the global goods markets. A. Gary Shilling, the president of his own economic Everyone knows about global financial markets. Stocks, advisory firm, with a blue-ribbon list of Wall Street and bonds, and bank deposits surge around the world in corporate clients, expects a near-term global recession, nanoseconds, riding the twinkling green blips on trad- followed by a long and painful cycle of deflation. "The ing-room computer screens. Integration of the manufac- world's debt load has far outrun its collateral," he says, turing economy is an even newer development. High- "whether you're talking about the Third World, farm productivity manufacturing technology, much of it land, corporations, consumers, everything. It will take a pioneered in Japan, is spreading rapidly throughout the major global recession to force a debt restructuring. But world; at the same time that big companies, and even even coming out of the recession there will be a fierce many medium-sized companies, are operating more and battle for exports-there's a lot of extra capacity coming more on a global scale. The result is relentless global on line in the developing countries-and a protectionist competition on price and quality, a steady, even startling, scramble. Governments won't help. Military spending is worldwide increase in manufacturing productivity, and dropping; Star Wars will turn into Trade Wars. It's hard to Asolid increases in real world output. foresee a happy resolution even longer-term. The second argument is a demographic one. The pop- These are all serious and respected thinkers. Even Ba- tilation profile of the United States has been wildly mis- tra, whose reading of history is sometimes comically sim- shapen over the past twenty-years. Tens of millions of plistic, has made substantial contributions to the theory young adults born during the Baby Boom years of 1946- of international trade. But there is another view. A small 1964, unskilled, semischooled, and very unsettled, but growing group of economists makes a strong case that streamed into the job queues, playing havoc with the un- the world and the United States, instead of teetering on employment rate, personal savings, and the quality of the edge of disaster, are really on the threshold of an al- American work output. The populations of Japan and most unprecedented long-run economic boom. Germany, in contrast, have been much more heavily weighted toward mature adults in their forties and early The Case for Optimism fifties. Starting just about now the center of gravity of the American population is shifting radically once again. For HE INTELLECTUAL ICON OF THE NEW OPTI- T most of the next two decades the age mix in America will mists is Joseph Schumpeter, an Austrian be very much like those in present-day Japan and Ger- economist who did much of his work in the many. The labor force will grow very slowly, if at all; the United States. Schumpeter, who died in 1950, demographic pressures making for unemployment will was one of the first to develop the theory of business cy- decline; output, income, and savings per worker should cles. He believed that economies progress in fitful starts go up steadily. and stops, interspersing long periods of economic dislo- Finally, the optimists foresee a steady decline in inter- cation with stretches of sustained growth and develop- est rates. Big-country governments, as a group-includ- ment. The driving forces behind Schumpeter's cycles of ing the United States-have halved their budget defi- boom and bust are the pace of industrial innovation and cits, measured as a percent of national income, over the the diffusion of new technology. In Schumpeter's terms, past few years; some are already buying back their bonds. the optimists see the long run of economic turmoil that Over time reduced borrowing should mean lower rates. began in the early 1970s as a period of dislocation that is Meanwhile global competition is already keeping a tight the prelude to a new industrial golden age. 7 lid on inflationary wage and price increases. About half Although there is some overlap between the new opti- the long-term interest rate is a hedge against higher fu- mists and the supply-side publicists-the people, that is, ture inflation. As investors slowly come to believe that in- who predicted we could have tax cuts without budget flation isn't about to run out of control, the size of that deficits-their case is not just blind Panglossism. It rests hedge will drop. What's more, for a variety of complicat- on sophisticated arguments, derived from economic and ed reasons, the demand for housing is expected to drop demographic developments around the world and in the sharply. Real estate has absorbed an absurdly high pro- United States. The gap between the optimists' view and portion of American wealth over the past twenty years. 52 Photocopy-Preservation OCTOBER 1989 THE ATLANTIC MONTHLY Over the next ten much of that capital will become Big Business Goes available for productive Global business investment, help- EE IACOCCA'S ing to keep interest rates L television ads low. blared, "Here's It is important to be to You, Amer- clear about what the opti- ica," as jet planes streaked mists are not saying. No red, white, and blue ex- one is claiming that reces- hausts across the sky. sions are a thing of the There is no subtlety in the past. Indeed, some of the appeal: buying from optimists, like many other Chrysler is your patriotic economists, believe that duty. But the pitch is more after seven years of unin- than normally disingen- terrupted growth there is uous. For behind the considerable likelihood of smoke and clamor of the an American recession late trade wars, Chrysler and this year or sometime in the rest of the world's auto- 1990. But recessions in the motive majors are frantical- 1990s should be short- lived and shallow-more ly forming engineering, like the twenty years after production, and marketing the Korean War, when the alliances, literally carving OR THE FORESEEABLE up the world, to buttress American and world FUTURE, POWERFUL INDUSTRIAL, their positions in the strug- economies grew smoothly gle for global car-sales su- and steadily, with occa- ECONOMIC, AND DEMOGRAPHIC premacy. Who the eventu- sional pauses, to be sure, FORCES WILL BE CONVERGING IN A WAY al winners will be is far but without the jagged bounces, the stomach- THAT WILL OFFER A WELCOME from certain, but what is clear is that only a small churning spurts and RESPITE FROM THE TRAUMAS OF THE plunges, that we saw from number of global compa- PAST TWO DECADES. nies will survive, and it is 1973 to 1982. Nor is the boom abso- increasingly meaningless to speak of them as lutely guaranteed. No one should underestimate the "American" or "Japanese" or "European" companies. ability of governments to derail a drive for efficiency and (Even in Iacocca's ad the planes are French.) productivity in the name of local special interests. And The global restructuring of the automobile companies while the United States will prosper mightily during a is being driven by the hurricane-force wind from East long-run cycle of global growth, there is no assurance that Asia that hit the industry in the 1970s, capitalism's "pe- it will remain the world's economic kingpin, the imperi- rennial gale of creative destruction" extolled by Schum- ous proclaimer and disposer of the postwar years. In- peter. In a world where no market is safe, only the big- deed, that is not at all likely to be the case. gest and strongest companies can thrive. The alliances of Finally, the optimists tend to ignore the darker side of the automotive majors look like the intricate crisscrossing the boom. It will be some time, perhaps a decade or battle lines in the Oriental game of Go. Take Chrysler it- more, before the boom's blotched underbelly draws self: For all of Iacocca's red, white, and blue bunkum, much public attention. Some of the issues of public poli- auto-industry analysts say that Chrysler has the lowest cy will be momentous: What, for example, is the relation percentage of American-made parts in its cars of any of between a government, no matter how powerful, and a the Big Three. It also owns 24 percent of Mitsubishi Mo- company that is truly global in its operations, its manage- tors and, through Mitsubishi, a share of the South Korean ment, and its ownership? But there will be few hardy upstart Hyundai. Mitsubishi has long made cars under contrarians to point out the problems of the boom. For Chrysler's label, and the two companies run a fifty-fifty the foreseeable future, if the optimists are right-and joint venture in Normal, Illinois, which will be producing their case is a strong one-powerful industrial, econom- 240,000 vehicles under both nameplates by the end of ic, and demographic forces will be converging in a way next year. that will offer a welcome respite from the traumas of the Ford, with one third of its sales outside the United past two decades. States, owns 25 percent of Mazda. Mazda makes cars in OCTOBER 1989 Photocopy-Preservation 53 THE ATLANTIC MONTHLY America for Ford; Ford will reciprocate by making com- Whether the Chryslers, or even the Hondas, can sur- pact trucks for Mazda; and the two companies trade vive is far from clear. The weaker Japanese companies, parts. Each owns a piece of Korea's Kia Motors, which like Daihatsu, are already dropping by the wayside. But produces the Ford Festiva for export to the United no one can deny that cars, particularly American cars, are States. Ford and Nissan, Japan's No. 2, swap vehicles in much better than they used to be. The American indus- Australia and are planning a joint mini-van program in try still isn't up to the level of the best Japanese compa- America. Ford and Volkswagen have merged into a single nies, but standards are tighter, the work force is leaner, company in Latin America, which exports trucks to the and the cars are more competitive. They have to be, be- United States. cause the Big Three can no longer be rescued by import General Motors holds a 41.6 percent stake in Isuzu, controls. In a year or so global Japanese companies will which is starting a joint venture in America with Subaru, be turning out two million high-quality American cars a which is partly owned by Nissan. GM also owns half of year, with American workers, in American plants. Daewoo Motors, Hyundai's major competitor in Korea. Daewoo makes Nissan cars for Japan and Pontiacs for America; soon it will be selling cars that were primarily The Third Industrial Revolution designed by GM-Europe to Isuzu in Japan. GM has also HE AUTOMOBILE INDUSTRY IS NOT THE ONLY teamed with Japan's No. 1, Toyota, to produce cars under both companies' labels in America and Australia. Their T one to have felt the competitive lash. For sheer compressed, earth-scorching savagery, it joint American operation will be turning out 100,000 is difficult to match the violent recession that small cars and trucks by 1991. struck American manufacturing industries in 1981-1982. Europe is laced with partnerships, joint ventures, and Whole sectors of the economy were brought to the brink production agreements. Honda America sells more cars of destruction. Just a few statistics convey the speed and in America than its parent does in Japan-its Accords extent of the humiliation. In 1975 America's machine- were the seventh best-selling American-made car tool manufacturers dominated the world markets; by in 1988-and some analysts see the power balance 1985 machine-tool exports were virtually nonexistent within the company shifting to the American subsidi- and German and Japanese machine tools were standard ary. Honda plans to be exporting 70,000 cars from the throughout American industry. In just a few years Ameri- United States by 1991. cà's share of world semiconductor fabrication dropped OCTOBER 1989 Photocopy-Preservation 55 THE ATLANTIC MONTHLY from 60 percent to 40 percent. For all practical purposes, and-development base; and it enjoys the luxury of global American companies simply exited the consumer elec- sourcing of selected products from highly specialized fac- tronics industry. No home radios, phonographs, black- tories. Sony has been steadily moving the design and pro- and-white televisions, or cassette players are made in the duction of its televisions to Europe and America, but a United States any longer; American companies' share of common worldwide chassis gives a cost advantage no lo- the color-television market is minuscule No American cal competitor can match. Engineers at General Elec- company makes VCRs or CD players. Industry after in- tric-FANUC design factory controllers around the clock dustry told the same story. "We were oxyacetylened," at the end of each day the Americans download their one Rust Bowl executive says-it was like being taken work to a satellite link to Japan and then pick up the next out with a blowtorch. morning where the Japanese left off. A global competi- In retrospect, the storm warnings had been flying for tive standard squeezes out the small inefficiencies that years. American companies, feeling secure in their big build up in protected national markets-traditional labor home market, were complacent and lazy, running smug practices, fustian management. "If you let your costs or big-union and big-management cartels, turning out shod- your quality get out of line almost anywhere, someone is dy products that cost too much, And in industry after in- moving in to take advantage," says Steven Nagourney, dustry there are the same frantic struggle for global po- the chief international strategist for Shearson Lehman sition and scrambling for strategic alliances that are Hutton.), reshaping the automobile industry. Texas Instruments Support for the optimists' claims comes from the strik- and the Japanese computer-maker Hitachi are partners in ing rise in global manufacturing productivity during the developing the next-generation computer memory chip, 1980s. Manufacturing productivity in the United States the 16-megabit DRAM. The Japanese earthmoving- has grown at an annual rate of 4.3 percent since 1982, one equipment-maker Komatsu is partnering with Dresser of the fastest sustained run-ups on record. (American Industries in manufacturing and marketing throughout steel is now actually cheaper than Japanese steel.) After North and South America. slipping badly three years ago, Japan has surged back to Whirlpool has joined with the Dutch electronics gi- the head of the productivity-league tables, with a 5.9 per- ant Philips to operate six major appliance factories cent growth rate over the same period. And right behind in the Common Market. Philips has also joined with a Japan is Great Britain, for twenty years the living symbol group of American executives and the Taiwanese govern- of "Eurosclerosis." Europe's second fastest rate of output ment to create an advanced semiconductor-fabrication growth was in Italy-yes, Italy-just a hair faster than plant in Taiwan, where Texas Instruments is also build- the rate in the United States. France, Germany, and Swe- ing an advanced chip factory with a Taiwanese partner. den are clustered behind the United States, with quite Ball, of Muncie, Indiana, has entered into a series of respectable rates of improvement. joint ventures around the world to market and manu- Edward Yardeni, of Prudential-Bache, suspects that facture its lightweight containers for soft drinks. The list globalization is already a factor in the eerie lack of an goes on and on-USX and Kobe Steel, Armco and American recession, the missing guest at the economic Kawasaki Steel. The misnamed National Steel Com- table whose absence has been so glaring for the past sev- pany is a fifty-fifty joint venture between an American eral years. He thinks there may be a new pattern of "roll- and a Japanese company. Most of the pharmaceutical ma- ing recessions" that affect whole industries around the jors have entered into extensive cross-licensing agree- world a cluster at a time, rather than the individual na- ments covering one another's products. Japan's robotics tional recessions that economists are accustomed to look- leader, FANUC, has partnerships with General Motors in ing for. He points to the recession in the computer indus- robots, with General Electric in computerized factory try in 1983-1984: computer and computer-component control devices, and with the German firm Siemens in manufacturers were severely depressed globally, but not electronics. enough to take the steam out of the rest of the economy. The drive for global market share is forcing what Stan- Even accepting the optimists' claim that the world is ley Feldman, of Data Resources, calls the Third Indus- on the brink of an industrial boom, the question remains trial Revolution. A wholesale reordering of production whether the United States will get much benefit from it. technology is under way-computerized factory sched- National economic behavior for the past two decades has ules and inventory controls to cut costs, intelligent pro- not been impressive. The problem seems almost to be a duction machinery that can shift processes in the middle moral and intellectual flabbiness-an inability to make of an assembly line. The object is to produce local prod- spending choices, a low savings rate, a culture of self- ucts adapted to local markets, but reap world economies centered consumerism and restless mobility, a lack of of scale in research and development, raw-materials commitment and loyalty on the part of careless workers sourcing, and production balancing. and job-hopping executives. The optimists' answer is IBM makes almost all its products in its local markets, that the past twenty years have been a most unusual peri- but no other company can match its worldwide research- od in American economic history. Photocopy-Preservation 56 OCTOBER 1989 THE ATLANTIC MONTHLY The Comforts of ple. The soul does not thrill at the sight of forty- Demography year-old workaholics, rais- HE WORLD SINGS ing kids and paying their T the praises of mortgages, but as the the "Great economy's centerweight, American Job they have it all over the Machine." Over the past long-haired pot-smokers of twenty years the United a couple of decades ago. States has created jobs for The critical variable will 38 million new workers, 17 be the American savings million of them in the past rate, which, in fact, has seven years alone, when shown signs of rising again employment was virtually after hitting an all-time low flat in almost every other in 1987. Personal savings industrial country. But in are the ultimate source of the same breath econo- all productive investment. mists lament the slowdown It is the high Japanese sav- in American productivity; ings rate-as much as 18 manufacturing excepted, percent of all personal in- the output of American come-that has financed workers has been stagnant Japan's global industrial since the early 1970s. conquest. It is the high The strong performance UPPORT FOR THE OPTIMISTS' savings rates in other coun- in job creation and the tries, as well, that have al- CLAIMS COMES FROM THE STRIKING RISE weak performance in pro- lowed America to dance ductivity are, of course, IN GLOBAL MANUFACTURING through the economic rain- two sides of the same coin. PRODUCTIVITY DURING THE 1980S. drops in recent years; for- New workers swelled the eign capital picks up the American labor force by IN THE UNITED STATES IT HAS tab for the American bud- about 50 percent in the GROWN AT AN ANNUAL RATE OF 4.3 get and trade deficits. The past twenty years, shifting optimists argue, plausibly PERCENT SINCE 1982. the average age and expe- enough, that an older, rience of workers sharply more productive work downward. Not surprisingly, with lots of cheap new force, with higher real incomes, will save more. Yardeni workers mobbing the doorway, businessmen increased expects a 10 percent savings rate in the mid-1990s, hiring instead of investing in labor-saving machinery-a roughly double the current one. fancy industrial robot costs about as much as a year's Unfortunately, for all its importance, the personal wages for a hundred entry-level workers. Real wages and savings rate is one of the least precise of statistics. The productivity were stagnant, and the business success sto- number is merely a residual of two huge data series, for ries were companies, like McDonald's, that learned how personal income and personal spending, each of which to pan for gold in that low-wage pool. involves thousands of samples, estimates, and interpola- The transformation of the work force in the 1990s will tions. The difference between the two is "savings." Tiny be just as dramatic. People born at the Baby Boom's peak estimating errors or changes in method in calculating the are in their thirties. About five years from now two thirds two big series can cause proportionally enormous swings of the Baby Boomers will be over thirty-four. Walking in the residual. "There are no data relating savings to age shoes are already pushing high-priced running shoes off group," John Gorman, a key analyst at the Department the sports-store counters. Another sign of the times is of Commerce, says flatly. "None." that McDonald's is beginning to invest in labor-saving Yardeni points to sample data indicating that people machinerv-two-sided grills, for instance. As the size of under thirty, particularly those with lower incomes, are the work force begins to stabilize, and the average age "dissavers"-they spend more than they earn. People and experience of workers move rapidly upward, busi- over forty, particularly those with higher incomes, do ness will start substituting equipment for low-wage most of the saving. Other economists challenge those workers. Capital spending, in fact, has been strong findings, citing studies that show only inconsistent rela- throughout the 1980s expansion, and with time produc- tionships. All the studies have major methodological tivity should soar. "Couch potatoes" are not exciting peo- problems. For anyone who wants to believe that the opti- OCTOBER 1989 Photocopy-Preservation 57 THE ATLANTIC MONTHLY mists are right, though, this is the vital sign that bears the lic services, and the same range of specialty consumer closest watching. items, enjoyed by other rich nations. Emmott suggests Interestingly, the demographic tides in Japan suggest that spending on overseas travel and other services could that the long surge of Japanese industry is reaching a cy- equal or exceed the return on overseas investment in- clical peak. An International Monetary Fund study says come. He assumes that Japan will continue to be a formi- that the impact of demographic change in Japan will be dable competitor, of course, but eventually as the leader the "most extreme" of any in the industrialized coun- of a bloc of yen-oriented industrial powers-much as tries, as the number of aged dependents doubles starting West Germany is the leader of a de facto European about 1995. bloc-rather than as a world-conquering golden horde. Bill Emmott, the business-affairs editor of The Econo- mist, foresees a steadily Westernizing Japanese economy Of Governments, in an important new book, The Sun Also Sets. The very Real Estate, and Interest Rates high Japanese savings rate will drop as the workers now in their fifties reach retirement age and begin to draw on HE LAST THREAD IN THE BRIGHT ECONOMIC their savings, at roughly the same time that American T tapestry the optimists are weaving is the fore- savings, one hopes, will begin a long rise. Consumer cast of steadily falling interest rates. Falling spending is already rising strongly as young Japanese rates would ease debt pressures and spur in- adults, with no memories of the postwar deprivations, dustrial investment. The array of forces lining up to push begin to insist on the same amenities in housing and pub- rates down is, in fact, an impressive one. In the first FOR THE SAKE OF RETRIEVAL As Whistler heard colors like a stretch of music- stairsteps, doorknob, serving bowl, teacup, Bordeaux. long harmonies, violet to amber, double hummings of Mechanical fingers, controlled by the strokes silver, opal-so, in reverse, these three in their capsule, of a joy stick, brush over debris, lifting, replacing. In jittery strobe lights, camera lights, all colors free-falling two hours through the black Atlantic, ears ground down to a quiet palette, popped, then filled with the music of Bach or Haydn, angles return, corners and spirals might fashion a landscape. Low notes bring pull back to the human eye-as if from some a prairie perhaps, the sharps a smatter of flowers, iced and black-washed atmosphere, boiler coal, as the pip-notes of sonar spring back to the screen a footboard and platter, each common shape in little blossoms. They have come for the lost Titanic brightened, briefly held for the sake of retrieval. The current spins silt like a sudden storm. and find instead, in the splayed beam of a headlamp, With the intricacy of a body the capsule adjusts, silt fields, pale and singular, like the snow fields temperature, pressure. Someone coughs, then the three of Newfoundland. On its one runner blade the capsule slides, sit waiting, as in Whistler's "Sad Sea" slips out through drift hummocks, through three are waiting. All around them are dollops stones the ice-age glaciers dropped, its trail of winter wind, everywhere beach and sea. No horizon the foot-thin trail of a dancer, who at all in this painting, just a grey/brown thrum plants, glides, at his head the flurry beach to sea. How steady his breath must have been on the canvas, his hand on the brushstrokes of a ship's chandelier, at his back a cinch-hook of icebergs of lap robes, of bonnets and beach chairs, the pull cast down through the winds of Newfoundland. of a red umbrella: each simple shape The music these three absorb loved and awash in the landscape. stops with the wreckage, with words lipped up through a microphone: -Linda Bierds flange, windlass, capstan, hull plating, then oddly, syllables at a slant, as light might slant through window slats, Photocopy-Preservation 58 OCTOBER 1989 THE ATLANTIC MONTHLY place, interest rates are partly an anticipation of inflation. owners who are still hoping to make a killing on their There is a good argument that global competitive pres- houses, but would be a major shot of adrenaline for sures clamp a firm ceiling on prices, Coopers & Lybrand, American industry. the international accounting and consulting firm, says Yardeni has pulled together all the roses blooming in flatly that only the "fierce worldwide competition in the economic garden into a bouquet he calls New Wave price and quality" can explain the tame behavior of prices Economics. "After the stock market crashed in 1987," he during the prolonged American economic expansion. says, "and everyone was filled with gloom, I decided to Alan Greenspan, the chairman of the Federal Reserve, look at what might go right. Frankly, I was amazed at how says that "integration of the world's production facili- positive all the fundamentals were. The work force is ties" heads off inflation by unstopping production getting older, more skilled, and more productive. Savings bottlenecks. should rise just as government borrowing and the de- At the same time, government borrowing is declining mand for housing slow down. Global competition and a in virtually all the industrial countries, which should resurgence in manufacturing are a lid on inflation. We're press rates down further. Roland Leuschel, the chief in- looking at low interest rates, a long-term shift from hous- vestment strategist at Banque Bruxelles Lambert, has ing to business investment, and a big increase in produc- even raised an unfashionable alarm over "a looming tivity and real incomes. It's a cycle that could go on for a shortage of government bonds." On average, govern- long time." ment borrowing as a percent of national income fell by about half from 1984 to 1988-in the United States from But Will It Happen Here? five percent of GNP in 1985 to about three percent now (or two percent if state and local surpluses are counted, as HERE IS STILL THE PERVASIVE WORRY THAT they should be). Britain is already in surplus, retiring per- haps $23 billion of debt this year. Australia and Denmark T American industry has been weakened to the point where we are slipping to second-class are running surpluses, as will Japan and Germany within economic status. It is a serious issue, and there a year or two. America's cash deficit will disappear some- is genuine cause for concern in specific industries. time after 1995, as collections for the next century's So- But the question of America's future success in a global cial Security overhang begin to accumulate. Scaroer economy is too often confused with the issue of our re- bonds mean higher bond prices-another way of saying gaining our postwar position as economic dictator to the lower interest rates. world. That role is gone forever, and no one should wish Even more important is the expected drop in hous- it otherwise. The income of urban adults in the major in- ing demand in the United States. Housing was the char- dustrialized countries is now practically uniform. That acteristic American investment of the 1970s and 1980s. was the explicit objective of American statesmanship at Not only did the sheer number of young adults increase the end of the war, the crowning adornment of our post- sharply, but they moved out of their parents' house- war foreign policy, a grand aim expressly adopted, point- holds sooner, got married later, and formed more sep- edly pursued, and unambiguously attained. To seize arate households. To further boost housing demand, upon that success as an index of relative "decline" is to the next-fastest-growing age group consisted of those miss the point. over sixty-five, who for the first time ever decided to The shock of the economic turmoil of the 1970s, the keep their own houses instead of living with married recessionary gales of the early 1980s, and the sudden on- children. slaught of the Japanese have tended to exaggerate the Throw in a tax code that depressed the real cost of perception of decline. There are real problems in many mortgages, an inflationary psychology that encouraged American industries, but they need to be kept in people to borrow against real property, and truly spectac- perspective. ular capital gains from leveraged real-estate invest- Some statistics: ments-and housing starts exploded. All those factors According to a detailed study recently completed by will run in reverse in the 1990s. The number of young the British Treasury, real output per American worker, adults will drop, and the number of people over the age abstracted from currency fluctuations, is still the highest of sixty-five will stabilize. More-traditional family rela- in the world, and perhaps half again higher than output tionships among aging Baby Boomers will reduce the per worker in Japan. number of separate households. A Brookings Institution Over the past twenty years American companies have study forecasts about a 30 percent drop in demographi- increased their share of world exports. But American cally driven housing demand through the decade of the companies have spread their operations around the 1990s. Already the inventory of single-family homes for globe, and their sales overseas do not show up in Ameri- sale has risen about a third since 1982. A shift of savings can trade data. away from real estate to bank deposits or stocks and The U.S. share of world output actually increased bonds would mean some rough adjustments for home- slightly during the 1980s. Asian and Japanese shares of Photocopy-Preservation 62 OCTOBER 1989 world output also in- And the American high- creased, but at the ex- technology position is still pense of Europe, not of very strong. In the boom- America. ing market for mini-super- The United States nev- computers-miniaturized "de-industrialized." powerhouses that can er Manufacturing's share of chew through scientific GNP, at about 23 percent, problems that would tie up has been virtually un- even the largest business changed since 1947. computers for years-the The world-thumping only manufacturers are still success of Japanesc com- American. In the comput- panies in high-visibility erized-work-station mar- consumer-product manu- ket-very high-powered facture obscures how stag- personal computers- geringly unproductive the Sony is still chasing the greater part of the Japa- medium-sized California nese work force is. The ra- firm Sun Microsystems in tio of wholesale 111 retail Japan. America has no peer sales, for instance. il mea- in medical technology, fi- sure of how long il takes ber optics, genetic engi- goods to get to consumers, neering, or computer-aid- is more than double that in ed design. America. Food is extreme- Line HE MOST DANGEROUS OBSTACLE Clearly, there are prob- ly expensive, partly be- lems with American com- TO A NEW INDUSTRIAL GOLDEN AGE, cause of agricultural pro- petitiveness, as was docu- tectionism and partly AND THE ONLY ONE REALLY mented most recently by because there are no MIT's Commission on In- WITHIN OUR POLITICAL. CONTROL, IS THE world-class Japanese food- dustrial Productivity last processing and distribution ECONOMIC NATIONALISM BREWING spring. Michael P. Schul- companies. According to IN THE HALLS OF CONGRESS AND THE hof, the vice-chairman of Nomura Securities, Kraft Sony Corporation of Amer- could import cheese to Ja- COUNCILS OF EUROPE. ica, points to an American pan and sell it for half the penchant for quick fixes. price charged by local businesses, which, of course, are "American businessmen seem to think they can catch up clamoring for import protection. in high-definition television with a year or so of federal The Japanese pharmaceutical market is the second funding," he says. "That's not true. We've been building largest in the workl. but there are no world-class Japanese those technologies for twenty years. Besides that, I won't pharmaceutical companies. The largest Japanese chemi- believe American companies are serious until they stop cal company, Asahi Chemical, would barely make the list trying to sell left-hand-drive cars in Japan." of the top ten in America. The Japanese construction Schulhof's comment is on the mark. When American industry :s notoriously fragmented, inefficient, and mob- import restraints and the falling dollar raised the price of It is also politically powerful, and has man- Japanese cars, American automobile executives, for all aged, by end large. 11) exclude much more capable Amer- their Iacoccan swagger, took the easy way out: instead of ican companies from bidding on major public projects. winning back their markets, they raised prices, trumpet- The importance of agriculture, mining, and logging in ed a turnaround, and paid themselves multimillion-dollar America is sometimes viewed as a measure of backward- bonuses with the windfall profits. Christopher Willard, at ness. But as practiced in the United States, these are be- Dataquest, a high-technology market-research firm, coming high-tech industries. The price of coal has says, "There's nothing wrong with American technology. dropped by about a fifth in recent years, primarily be- But there is an attitude difference. American companies cause improvements in mining machinery. The con- won't manufacture complicated low-volume chips if they tinuin over bovine somatotropin, the hormone that can't make a profit on them. Japanese companies will boosts clurs' milk production, and over the use of recom- take the job if they think they'll learn something that will binant sene products as pesticides or crop enhancers help them later on, regardless of the short-term profits." demonstrate farm. the impact of technology on the modern The American lead in high technology, indeed, is part of the problem. American R&D expenditures, as a per- OCTOBER 1989 Photocopy-Preservation 63 THE ATLANTIC MONTHLY centage of GNP, are actually slightly higher than Japan's, ognize that protectionism is against their interests. but about a third of them are defense-related. America pillar, for example, has opposed the recent steel and ba. has more scientists and engineers than Japan, Great Brit- bearing import restraints, because they raise the cost of ain, and West Germany combined, but much of their its production. "Managed" semiconductor prices made work is devoted to building weapons. As a consequence, American computer companies less competitive, and America has unmatched high-end machining, for exam- managed trade in cars drew the Japanese into the high- ple-missile gyroscopes and submarine propeller blades profit luxury segment of the American market. must be finished to exquisitely precise standards— It may, in fact, be too late for the protectionists to do but has been thoroughly outclassed in mid-technology great damage; the interventions required would need to applications. be truly malign and persistent. Political consensus tends America is too big, too rich, and too resourceful to be to coalesce slowly, and the trade spats already have an shut out of the global boom. Even the pessimist Gary anachronistic air. The rapid movement of global compa- Shilling sees America as regaining much of its competi- nies into local markets, the intricate networks of partner- tiveness longer-term: "Japan may actually have a tougher ships, joint ventures, and cross-ownership, make a mock- time than the United States," he says, "because of demo- ery of the instinct to throw up ramparts. In 1986 graphics and excess capacity." American overseas sales were three times as large as As global companies continue the relentless push into American merchandise exports; half the trade deficit local markets, America will become a haven for high-pro- represents imports from American companies. The ductivity manufacturing. American companies will be Japanese tire company Bridgestone is investing $1 clear winners in some global industries, and American billion to upgrade the North American operations of Fire- companies that have taken to heart the lessons of the past stone, its new American acquisition. Goodyear, the ten years will be winners in every industry. To be sure, a world's leading tire manufacturer, is increasing its invest- large number won't make the grade and will be swal- ment to keep pace. The country and the economy are the lowed up by stronger Asian or European competitors, but winners. it will be increasingly difficult for consumers or workers The more challenging problems, in fact-ones that to tell the difference. the optimists rarely allude to-will be the problems of success. In the late 1950s John Kenneth Galbraith com- Can the Boom Be Stopped? plained about the slothful market-fixing practices of big American companies. He was right, and the complacent VEN THE MOST CONVINCED OPTIMISTS CONCEDE E giants got their comeuppance in the surprise Japanese that there is a long parade of horribles capable onslaught of the 1970s. But a decade or so from now, of pushing the world off a fast-growth track. when a handful of global automobile companies, global Some of them are unpredictable and probably computer companies, global chemical and food compa- uncontrollable. Can the world ecosystem sustain a pro- nies, global steel and consumer-electronics companies, longed cycle of global industrial growth? Images arise of a emerge from the fierce competitive struggle in clear lead- Bhopal or a Chernobyl on a tremendous scale, setting ership positions, who will keep them in line? Where will back economic development for a generation. Might Schumpeter's cleansing gale come from? From competi- there be a new Ice Age in the Cold War? world nervous- tors on Mars? In an outcome that would be much to ly fingering triggers in the wake of, say, a revolution in Schumpeter's chagrin, the global competitive struggle Eastern Europe might snuff out the free flow of goods we are now witnessing may end in the Marxist nightmare and wealth-creating technology essential to a sustained of global monopolies. cycle of world economic development. Robert Reich, of Harvard University, worries that But the most dangerous obstacle to a new industrial global competition, while opening unprecedented op- golden age. and the only one really within our political portunities for educated manipulators of symbols. like control, is the economic nationalism brewing in the halls lawyers, investment bankers, design engineers, and mar- of Congress and the councils of Europe. Europe is the keting experts, will impose iron limits on the wages of or- prime example: it has attempted to protect its markets dinary workers. At the very least, there is cause for grave and its national producers for forty years. Engorged with concern about a laggard national educational system. government subsidies, the British automobile industry turning out a class of permanent social dependents who simply rolled over and died. None of the global car com- are squeezed out of any meaningful economic role by the panies that will survive a decade from now is likely to be better schooling and work ethos prevailing abroad. European. Semiconductor and computer "initiatives" Success, in short, will bring momentous problems proliferated throughout Europe in the 1970s; the result of its own. But if the optimists are right, and the world was a virtually complete takeover by the Americans. as really is on the brink of a Schumpeterian golden age. national resources were dissipated on losers. there should be energy and resources-enough to solve There are some signs that American businessmen rec- them. Photocopy-Preservation 64 OCTOBER 1989 Harry S. Truman, 1950 July I9 [193] used in residential and other details of these programs, and advise my governing both the purchase and sale of in- vill be required in increasing office of any problem which remains sured and guaranteed mortgages. I under- national defense purposes. It unresolved. stand that the current regulations governing hat these requirements be met Very sincerely yours, the purchase of mortgages have substantially hout delay. These increased HARRY S. TRUMAN reduced the volume of purchases. This situ- aggravate inflationary tend- ation should be carefully watched to make evident in some of these ma- [Honorable Carl R. Gray, Jr., The Administrator sure that further mortgage purchases are of Veterans' Affairs] positive actions are taken to held to the irreducible minimum. in residential construction. Dear Mr. Chairman: I also understand that sales of mortgages I request that the Ad- As you know, residential construction in owned by the Federal National Mortgage Veterans' Affairs take the fol- the last several months has risen to very high Association have been stepped up consid- strative actions: levels. Continuance of high levels would erably in recent months. I am sure you will a cash down payment of at be entirely desirable, were it not for recent agree, however, that in the present situation for all loans guaranteed, international developments. It is already sales efforts should be further intensified in by the Veterans' Adminis- clear that, as a result of events of the last order to absorb, as much as possible, surplus permissible under existing month, many materials used in residential funds seeking investment in residential and other construction will be required in mortgages. such required cash down pay- increasing amounts for national defense pur- Inasmuch as the Federal National Mort- equal to any increase in poses. It is imperative that these require- gage Association will soon be transferred occasioned by recognized in- ments be met fully and without delay. These to the Housing and Home Finance Agency, ruction costs over those exist- increased demands will aggravate infla- I would appreciate your working closely with tionary tendencies already evident in some the Administrator of the Housing and Home direct loan authorizations in of these materials unless positive actions are Finance Agency in the planning and execu- quarter of fiscal year 1951 to taken to reduce pressures in residential tion of these actions. total amount authorized for construction. Very sincerely yours, Enclosed for your information are letters HARRY S. TRUMAN further actions as in your I have addressed to the Administrator of the become necessary and appro- Housing and Home Finance Agency and the [Honorable Harley Hise, Chairman, Board of Di- restriction of size of projects Administrator of Veterans' Affairs, request- rectors, Reconstruction Finance Corporation] curtail the use in residential ing them to take certain steps to restrain the NOTE: Copies of these letters were sent to the Hon- orable Charles F. Brannan, Secretary of Agricul- materials essential to national expansion of housing credit. ture, the Honorable Thomas B. McCabe, Chairman As a corollary to the actions which I have of the Board of Governors of the Federal Reserve your information is a copy asked these agencies to take, I request you System, and the Honorable Maple T. Harl, Chair- today's date to the Adminis- to reexamine immediately the regulations of man of the Federal Deposit Insurance Corporation. The President signed the Housing Act of 1950 Housing and Home Finance the Federal National Mortgage Association on April 20, 1950 (64 Stat. 48). my wish that both agencies ubstantial and parallel cur- credit, but in such a way 193 Special Message to the Congress Reporting on the preference presently ac- Situation in Korea. July 19, I950 is preserved. I would erefore, if you will consult To the Congress of the United States: to meet this situation. I am also laying be- istrator of the Housing and I am reporting to the Congress on the fore the Congress my views concerning the Agency in working out the situation which has been created in Korea, significance of these events for this Nation and on the actions which this Nation has and the world, and certain recommenda- taken, as a member of the United Nations, tions for legislative action which I believe 527 [193] July I9 Public Papers of the Presidents should be taken at this time. The report of these international observers At four o'clock in the morning, Sunday, stated that the Army of the Republic of June 25th, Korean time, armed forces from Korea was organized entirely for defense. factual north of the thirty-eighth parallel invaded The observers found the parallel guarded the Republic of Korea. on the south side by small bodies of troops The Republic of Korea was established as in scattered outposts, with roving patrols. History an independent nation in August, 1948, after They found no concentration of troops and a free election held under the auspices of the no preparation to attack. The observers United Nations. This election, which was concluded that the absence of armor, air originally intended to cover all of Korea, support, heavy artillery, and military sup- was held only in the part of the Korean pe- plies precluded any offensive action by the ninsula south of the thirty-eighth parallel, forces of the Republic of Korea. because the Soviet Government, which On June 25th, within a few hours after occupied the peninsula north of that parallel, the invasion was launched from the north, refused to allow the election to be held in the the Commission reported to the United Na- area under its control. tions that the attack had come without The United States, and a majority of the warning and without provocation. other members of the United Nations, have The reports from the Commission make recognized the Republic of Korea. The ad- it unmistakably clear that the attack was mission of Korea to the United Nations has naked, deliberate, unprovoked aggression, been blocked by the Soviet veto. without a shadow of justification. In December, 1948, the Soviet Govern- This outright breach of the peace, in ment stated that it had withdrawn its occu- violation of the United Nations Charter, pation troops from northern Korea, and created a real and present danger to the that a local regime had been established security of every nation. This attack was, there. The authorities in northern Korea in addition, a demonstration of contempt continued to refuse to permit United Na- for the United Nations, since it was an tions observers to pass the thirty-eighth attempt to settle, by military aggression, a parallel to supervise or observe a free elec- question which the United Nations had tion, or to verify the withdrawal of Soviet been working to settle by peaceful means. troops. The attack on the Republic of Korea, Nevertheless, the United Nations con- therefore, was a clear challenge to the tinued its efforts to obtain a freely-elected basic principles of the United Nations government for all of Korea, and at the time Charter and to the specific actions taken of the attack, a United Nations Commission, by the United Nations in Korea. If this made up of representatives of seven na- challenge had not been met squarely, the ef- tions-Australia, China, El Salvador, fectiveness of the United Nations would France, India, the Philippines and Tur- have been all but ended, and the hope of key-was in the Republic of Korea. mankind that the United Nations would de- Just one day before the attack of June velop into an institution of world order 25th, field observers attached to the United would have been shattered. Nations Commission on Korea had com- Prompt action was imperative. The pleted a routine tour, lasting two weeks, of Security Council of the United Nations met, the military positions of the Republic of at the request of the United States, in New Korea south of the thirty-eighth parallel. York at two o'clock in the afternoon, Sun- 528 Harry S. Truman, 1950 July I9 [193] international observers day, June 25th, eastern daylight time. Since to the resolution of the Security Council of Army of the Republic of there is a 14-hour difference in time be- the United Nations. Accordingly, in order entirely for defense. tween Korea and New York, this meant to support the resolution, and on the unani- found the parallel guarded that the Council convened just 24 hours af- mous advice of our civil and military au- by small bodies of troops ter the attack began. thorities, I ordered United States air and tposts, with roving patrols. At this meeting, the Security Council sea forces to give the Korean Government concentration of troops and passed a resolution which called for the im- troops cover and support. to attack. The observers mediate cessation of hostilities and for the On Tuesday, June 27th, when the United the absence of armor, air withdrawal of the invading troops to the Nations Commission in Korea had reported artillery, and military sup- thirty-eighth parallel, and which requested that the northern troops had neither ceased any offensive action by the the members of the United Nations to re- hostilities nor withdrawn to the thirty-eighth public of Korea. frain from giving aid to the northern ag- parallel, the United Nations Security Council within a few hours after gressors and to assist in the execution of this met again and passed a second resolution launched from the north, resolution. The representative of the Soviet recommending that members of the United reported to the United Na- Union to the Security Council stayed away Nations furnish to the Republic of Korea attack had come without from the meetings, and the Soviet Govern- such aid as might be necessary to repel the ithout provocation. ment has refused to support the Council's attack and to restore international peace and from the Commission make resolution. security in the area. The representative of clear that the attack was The attack launched on June 25th moved the Soviet Union to the Security Council unprovoked aggression, ahead rapidly. The tactical surprise gained stayed away from this meeting also, and the of justification. by the aggressors, and their superiority in Soviet Government has refused to support breach of the peace, in planes, tanks and artillery, forced the lightly- the Council's resolution. United Nations Charter, armed defenders to retreat. The speed, the The vigorous and unhesitating actions of and present danger to the scale, and the coordination of the attack left the United Nations and the United States nation. This attack was, no doubt that it had been plotted long in in the face of this aggression met with an demonstration of contempt advance. immediate and overwhelming response Nations, since it was an When the attack came, our Ambassador throughout the free world. The first blow by military aggression, a to Korea, John J. Muccio, began the imme- of aggression had brought dismay and the United Nations had diate evacuation of American women and anxiety to the hearts of men the world over. settle by peaceful means. children from the danger zone. To protect The fateful events of the 1930's, when ag- the Republic of Korea, this evacuation, air cover and sea cover were gression unopposed bred more aggression a clear challenge to the provided by the Commander in Chief of and eventually war, were fresh in our of the United Nations United States Forces in the Far East, General memory. the specific actions taken of the Army Douglas MacArthur. In re- But the free nations had learned the lesson Nations in Korea. If this sponse to urgent appeals from the Govern- of history. Their determined and united been met squarely, the ef- ment of Korea, General MacArthur was im- actions uplifted the spirit of free men every- the United Nations would mediately authorized to send supplies of where. As a result, where there had been ended, and the hope of ammunition to the Korean defenders. These dismay there is hope; where there had been United Nations would de- supplies were sent by air transport, with anxiety there is firm determination. institution of world order fighter protection. The United States Fifty-two of the fifty-nine member nations shattered. Seventh Fleet was ordered north from the have supported the United Nations action was imperative. The Philippines, so that it might be available in to restore peace in Korea. of the United Nations met, the area in case of need. A number of member nations have offered the United States, in New Throughout Monday, June 26th, the in- military support or other types of assistance clock in the afternoon, Sun- vaders continued their attack with no heed for the United Nations action to repel the 529 [193] July I9 Public Papers of the Presidents aggressors in Korea. In a third resolution, The Soviet Government, in its reply on passed on July 7th, the Security Council re- June 29th and in subsequent statements, has quested the United States to designate a taken the position that the attack launched commander for all the forces of the members by the north Korean forces was provoked of the United Nations in the Korean opera- by the Republic of Korea, and that the ac- tion, and authorized these forces to fly the tions of the United Nations Security Coun- United Nations flag. In response to this cil were illegal. resolution, General MacArthur has been des- These Soviet claims are flatly disproved by ignated as commander of these forces. These the facts. are important steps forward in the develop- The attitude of the Soviet Government ment of a United Nations system of collec- toward the aggression against the Repub- tive security. Already, aircraft of two na- lic of Korea, is in direct contradiction to its tions-Australia and Great Britain-and often expressed intention to work with naval vessels of five nations-Australia, Can- other nations to achieve peace in the world. ada, Great Britain, the Netherlands and New For our part, we shall continue to sup- Zealand-have been made available for op- port the United Nations action to restore erations in the Korean area, along with forces peace in the Korean area. of Korea and the United States, under Gen- As the situation has developed, I have eral MacArthur's command. The other authorized a number of measures to be offers of assistance that have been and will taken. Within the first week of the fight- continue to be made will be coordinated by ing, General MacArthur reported, after a the United Nations and by the unified com- visit to the front, that the forces from north mand, in order to support the effort in Korea Korea were continuing to drive south, and to maximum advantage. further support to the Republic of Korea was All the members of the United Nations needed. Accordingly, General MacArthur who have indorsed the action of the Se- was authorized to use United States Army curity Council realize the significance of troops in Korea, and to use United States the step that has been taken. This united aircraft of the Air Force and the Navy to and resolute action to put down lawless ag- conduct missions against specific military gression is a milestone toward the estab- targets in Korea north of the thirty-eighth lishment of a rule of law among nations. parallel, where necessary to carry out the Only a few countries have failed to sup- United Nations resolution. General Mac- port the common action to restore the peace. Arthur was also directed to blockade the The most important of these is the Soviet Korean coast. Union. The attacking forces from the north have Since the Soviet representative had re- continued to move forward, although their fused to participate in the meetings of the advance has been slowed down. The troops Security Council which took action regard- of the Republic of Korea, though initially ing Korea, the United States brought the overwhelmed by the tanks and artillery of matter directly to the attention of the Soviet the surprise attack by the invaders, have been Government in Moscow. On June 27th, we reorganized and are fighting bravely. requested the Soviet Government, in view United States forces, as they have arrived of its known close relations with the north in the area, have fought with great valor. Korean regime, to use its influence to have The Army troops have been conducting a the invaders withdraw at once. very difficult delaying operation with skill 530 Harry S. Truman, 1950 July I9 [193] Government, in its reply on and determination, outnumbered many implications for peace throughout the world. in subsequent statements, has times over by attacking troops, spearheaded The attack upon the Republic of Korea that the attack launched by tanks. Despite the bad weather of the makes it plain beyond all doubt that the Korean forces was provoked rainy season, our troops have been valiantly international communist movement is pre- of Korea, and that the ac- supported by the air and naval forces of pared to use armed invasion to conquer United Nations Security Coun- both the United States and other mem- independent nations. We must therefore bers of the United Nations. recognize the possibility that armed aggres- claims are flatly disproved by In this connection, I think it is important sion may take place in other areas. that the nature of our military action in In view of this, I have already directed of the Soviet Government Korea be understood. It should be made that United States forces in support of the aggression against the Repub- perfectly clear that the action was under- Philippines be strengthened, and that mili- in direct contradiction to its taken as a matter of basic moral principle. tary assistance be speeded up to the intention to work with The United States was going to the aid of a Philippine Government and to the Asso- to achieve peace in the world. nation established and supported by the ciated States of Indo-China and to the forces we shall continue to sup- United Nations and unjustifiably attacked of France in Indo-China. I have also or- Nations action to restore by an aggressor force. Consequently, we dered the United States Seventh Fleet to pre- Korean area. were not deterred by the relative immediate vent any attack upon Formosa, and I have has developed, I have superiority of the attacking forces, by the requested the Chinese Government on For- number of measures to be fact that our base of supplies was 5,000 miles mosa to cease all air and sea operations in the first week of the fight- away, or by the further fact that we would against the mainland. These steps were at MacArthur reported, after a have to supply our forces through port once reported to the United Nations Secu- that the forces from north facilities that are far from satisfactory. rity Council. ontinuing to drive south, and We are moving as rapidly as possible to Our action in regard to Formosa was a to the Republic of Korea was bring to bear on the fighting front larger matter of elementary security. The peace ordingly, General MacArthur forces and heavier equipment, and to in- and stability of the Pacific area had been to use United States Army crease our naval and air superiority. But it violently disturbed by the attack on Korea. and to use United States will take time, men, and material to slow Attacks elsewhere in the Pacific area would Air Force and the Navy to down the forces of aggression, bring those have enlarged the Korean crisis, thereby against specific military forces to a halt, and throw them back. rendering much more difficult the carrying north of the thirty-eighth Nevertheless, our assistance to the Re- out of our obligations to the United Nations necessary to carry out the public of Korea has prevented the invaders in Korea. resolution. General Mac- from crushing that nation in a few days-as In order that there may be no doubt in directed to blockade the they had evidently expected to do. We are any quarter about our intentions regarding determined to support the United Nations Formosa, I wish to state that the United forces from the north have in its effort to restore peace and security to States has no territorial ambitions what- nove forward, although their Korea, and its effort to assure the people ever concerning that island, nor do we seek slowed down. The troops of Korea an opportunity to choose their for ourselves any special position or privi- of Korea, though initially own form of government free from coercion, lege on Formosa. The present military neu- by the tanks and artillery of as expressed in the General Assembly reso- tralization of Formosa is without prejudice by the invaders, have been lutions of November 14, 1947, and Decem- to political questions affecting that island. are fighting bravely. ber 12, 1948. Our desire is that Formosa not become em- forces, as they have arrived In addition to the direct military effort broiled in hostilities disturbing to the peace fought with great valor. we and other members of the United Na- of the Pacific and that all questions affecting have been conducting a tions are making in Korea, the outbreak of Formosa be settled by peaceful means as delaying operation with skill aggression there requires us to consider its envisaged in the Charter of the United Na- 53I [193] July I9 Public Papers of the Presidents tions. With peace re-established, even the London this spring. Recent events make it most complex political questions are sus- even more urgent than it was at that time to ceptible of solution. In the presence of build and maintain these defenses. brutal and unprovoked aggression, how- Under all the circumstances, it is apparent ever, some of these questions may have to that the United States is required to increase be held in abeyance in the interest of the its military strength and preparedness not essential security of all. only to deal with the aggression in Korea but The outbreak of aggression in the Far also to increase our common defense, with East does not, of course, lessen, but instead other free nations, against further aggression. increases, the importance of the common The increased strength which is needed strength of the free nations in other parts of falls into three categories. the world. The attack on the Republic In the first place, to meet the situation in of Korea gives added urgency to the ef- Korea, we shall need to send additional men, forts of the free nations to increase and to equipment and supplies to General Mac- unify their common strength, in order to Arthur's command as rapidly as possible. deter a potential aggressor. In the second place, the world situation re- To be able to accomplish this objective, quires that we increase substantially the size the free nations must maintain a sufficient and materiel support of our armed forces, defensive military strength in being, and, over and above the increases which are even more important, a solid basis of eco- needed in Korea. nomic strength, capable of rapid mobiliza- In the third place, we must assist the free tion in the event of emergency. nations associated with us in common de- The strong cooperative efforts that have fense to augment their military strength. been made by the United States and other Of the three categories I have just enumer- free nations, since the end of World War ated, the first two involve increases in our II, to restore economic vitality to Europe own military manpower, and in the material and other parts of the world, and the co- support that our men must have. operative efforts we have begun in order to To meet the increased requirements for increase the productive capacity of under- military manpower, I have authorized the developed areas, are extremely important Secretary of Defense to exceed the budgeted contributions to the growing economic strength of military personnel for the Army, strength of all the free nations, and will be Navy, and Air Force, and to use the Selective of even greater importance in the future. Service system to such extent as may be re- We have been increasing our common de- quired in order to obtain the increased fensive strength under the treaty of Rio de strength which we must have. I have also Janeiro and the North Atlantic Treaty, authorized the Secretary of Defense to meet which are collective security arrangements the need for military manpower by calling within the framework of the United Nations into active Federal service as many National Charter. We have also taken action to Guard units and as many units and indi- bolster the military defenses of individual viduals of the Reserve forces of the Army, free nations, such as Greece, Turkey, and Navy, and Air Forces as may be required. Iran. I have directed the Secretary of Defense The defenses of the North Atlantic Treaty and the Joint Chiefs of Staff to keep our mili- area were considered a matter of great tary manpower needs under constant study, urgency by the North Atlantic Council in in order that further increases may be made 532 Harry S. Truman, 1950 July I9 [193] Recent events make it as required. There are now statutory limits fense, further assistance on our part will be than it was at that time to on the sizes of the armed forces, and since required. Additional assistance may also be these defenses. we may need to exceed these limits, I rec- needed to increase the strength of certain circumstances, it is apparent ommend that they be removed. other free nations whose security is vital to States is required to increase To increase the level of our military our own. rength and preparedness not strength will also require additional supplies In the case of the North Atlantic area the aggression in Korea but and equipment. Procurement of many these requirements will reflect the consulta- our common defense, with items has already been accelerated, in some tions now going on with the other nations against further aggression. cases for use in Korea, in others to replace associated with us in the North Atlantic strength which is needed reserve stocks which are now being sent to Treaty. As soon as it is possible to deter- categories. Korea, and in still others to add to our gen- mine what each nation will need to do, I to meet the situation in eral level of preparedness. Further increases shall lay before the Congress a request for need to send additional men, in procurement, resulting in a higher rate of such funds as are shown to be necessary to supplies to General Mac- production of military equipment and sup- the attainment and maintenance of our com- as rapidly as possible. plies, will be necessary. mon strength at an adequate level. place, the world situation re- The increases in the size of the armed The steps which we must take to support increase substantially the size forces, and the additional supplies and equip- the United Nations action in Korea, and to support of our armed forces, ment which will be needed, will require increase our own strength and the common the increases which are additional appropriations. Within the next defense of the free world, will necessarily few days, I will transmit to the Congress have repercussions upon our domestic place, we must assist the free specific requests for appropriations in the economy. with us in common de- amount of approximately ten billion dollars. Many of our young men are-in battle now, their military strength. These requests for appropriations will be or soon will be. Others must be trained. categories I have just enumer- addressed to the needs of our own military The equipment and supplies they need, and two involve increases in our forces. Earlier, I referred to the fact that we those required for adequate emergency re- nanpower, and in the material must also assist other free nations in the serves, must be produced. They must be men must have. strengthening of our common defenses. The available promptly, at reasonable cost, and increased requirements for action we must take to accomplish this is without disrupting the efficient functioning I have authorized the just as important as the measures required of the economy. efense to exceed the budgeted to strengthen our own forces. We must continue to recognize that our personnel for the Army, The authorization bill for the Mutual De- strength is not to be measured in military Force, and to use the Selective fense Assistance Program for 1951, now be- terms alone. Our power to join in a com- to such extent as may be re- fore the House of Representatives, is an mon defense of peace rests fundamentally to obtain the increased important immediate step toward the on the productive capacity and energies of we must have. I have also strengthening of our collective security. It our people. In all that we do, therefore, we Secretary of Defense to meet should be enacted without delay. must make sure that the economic strength nilitary manpower by calling But it is now clear that the free nations which is at the base of our security is not service as many National of the world must step up their common se- impaired, but continues to grow. nd as many units and indi- curity program. The other nations asso- Our economy has tremendous productive Reserve forces of the Army, ciated with us in the Mutual Defense As- power. Our total output of goods and serv- Forces as may be required. sistance Program, like ourselves, will need ices is now running at an annual rate of the Secretary of Defense to divert additional economic resources to nearly 270 billion dollars-over 100 billion of Staff to keep our mili- defense purposes. In order to enable the dollars higher than in 1939. The rate is needs under constant study, nations associated with us to make their now about I3 billion dollars higher than a arther increases may be made maximum contribution to our common de- year ago, and about 8 billion dollars higher 533 [193] July I9 Public Papers of the Presidents than the previous record rate reached in total production can be expanded. Some 1948. All the foregoing figures have been materials were in short supply even before adjusted for price changes, and are there- the Korean situation developed. The steel fore a measure of actual output. The index industry, for example, was operating at ca- of industrial production, now at 197, is I2 pacity levels, and even so was not able to per cent higher than the average for last year, satisfy all market demands. Some other and 8I per cent higher than in 1939. construction materials, and certain other We now have 61½ million people in ci- products, were also under pressure and their vilian employment. There are 16 million prices were rising-even before the outbreak more people in productive jobs than there in Korea. were in 1939. We are now producing II The substantial speed-up of military pro- million more tons of steel a year than in the curement will intensify these shortages. Ac- peak war year 1944. Electric power output tion must be taken to insure that these short- has risen from 128 billion kilowatt hours in ages do not interfere with or delay the ma- 1939, to 228 billion hours in 1944, to 317 terials and the supplies needeed for the billion hours now. Food production is about national defense. a third higher than it ever was before the Further, the dollars spent now for mili- war, and is practically as high as it was tary purposes will have a magnified effect during the war years, when we were sending upon the economy as a whole, since they will far more food abroad than we are now. be added to the high level of current civilian The potential productive power of our demand. These increased pressures, if ne- economy is even greater. We can achieve glected, could drive us into a general in- some immediate increase in production by flationary situation. The best evidence of employing men and facilities not now fully this is the recent price advances in many utilized. And we can continue to increase raw materials and in the cost of living, even our total annual output each year, by putting upon the mere expectancy of increased mili- to use the increasing skills of our growing tary outlays. population and the higher productive ca- In these circumstances, we must take pacity which results from plant expansion, action to insure that the increased national new inventions, and more efficient methods defense needs will be met, and that in the of production. process we do not bring on an inflation, With this enormous economic strength, with its resulting hardship for every family. the new and necessary programs I am now At the same time, we must recognize recommending can be undertaken with con- that it will be necessary for a number of fidence in the ability of our economy to bear years to support continuing defense expendi- the strains involved. Nevertheless, the mag- tures, including assistance to other nations, nitude of the demands for military purposes at a higher level than we had previously that are now foreseeable, in an economy planned. Therefore, the economic meas- which is already operating at a very high ures we take now must be planned and used level, will require substantial redirection of in such a manner as to develop and main- economic resources. tain our economic strength for the long run Under the program for increasing mili- as well as the short run. tary strength which I have outlined above, I am recommending certain legislative military and related procurement will need measures to help achieve these objectives. to be expanded at a more rapid rate than I believe that each of them should be 534 Harry S. Truman, 1950 July I9 [193] can be expanded. Some promptly enacted. We must be sure to take ernment deficit. in short supply even before the steps that are necessary now, or we shall There are two fundamental principles developed. The steel surely be required to take much more dras- which must guide us in framing measures example, was operating at ca- tic steps later on. to obtain these additional revenues: and even so was not able to First, we should adopt such direct meas- (A) We must make every effort to finance demands. Some other ures as are now necessary to assure prompt the greatest possible amount of needed ex- materials, and certain other and adequate supplies of goods for mili- penditures by taxation. The increase of also under pressure and their tary and essential civilian use. I therefore taxes is our basic weapon in offsetting the in- ing-even before the outbreak recommend that the Congress now enact flationary pressures exerted by enlarged gov- legislation authorizing the Government to ernment expenditures. Heavier taxes will speed-up of military pro- establish priorities and allocate materials make general controls less necessary. intensify these shortages. Ac- as necessary to promote the national secu- (B) We must provide for a balanced sys- to insure that these short- rity; to limit the use of materials for non- tem of taxation which makes a fair distribu- terfere with or delay the ma- essential purposes; to prevent inventory tion of the tax burden among the different supplies needeed for the hoarding; and to requisition supplies and groups of individuals and business concerns materials needed for the national defense, in the Nation. A balanced tax program dollars spent now for mili- particularly excessive and unnecessary inven- should also have as a major aim the elimina- will have a magnified effect tories. tion of profiteering. as a whole, since they will Second, we must promptly adopt some At an appropriate time, as soon as the high level of current civilian general measures to compensate for the necessary studies are completed, I shall pre- increased pressures, if ne- growth of demand caused by the expansion sent to the Congress a program based on drive us into a general in- of military programs in a period of high these principles to assure the financing of our The best evidence of civilian incomes. I am directing all execu- needs in a manner which will be fair to all price advances in many tive agencies to conduct a detailed review of our citizens, which will help prevent infla- and in the cost of living, even Government programs, for the purpose of tion, and which will maintain the fiscal posi- expectancy of increased mili- modifying them wherever practicable to tion of the Nation in the soundest possible lessen the demand upon services, commod- condition. rcumstances, we must take ities, raw materials, manpower, and facili- As a further important safeguard against that the increased national ties which are in competition with those inflation, we shall need to restrain credit ex- will be met, and that in the needed for national defense. The Govern- pansion. I recommend that the Congress not bring on an inflation, ment, as well as the public, must exercise now authorize the control of consumer credit hardship for every family. great restraint in the use of those goods and and credit used for commodity speculation. time, we must recognize services which are needed for our increased In the housing field, where Government necessary for a number of defense efforts. credit is an important factor, I have directed continuing defense expendi- Nevertheless, the increased appropriations that certain available credit restraints be ap- assistance to other nations, for the Department of Defense, plus the de- plied, and I recommend that further controls than we had previously fense-related appropriations which I have be authorized, particularly to restrain ex- refore, the economic meas- recently submitted for power development pansion of privately-financed real estate must be planned and used and atomic energy, and others which will be credit. These actions will not only reduce as to develop and main- necessary for such purposes as stockpiling, the upward pressure on prices, but will also strength for the long run will mean sharply increased Federal ex- reduce the demand for certain critical ma- run. penditures. For this reason, we should in- terials which are required for the production mending certain legislative crease Federal revenues more sharply than I of military equipment. achieve these objectives. have previously recommended, in order to Third, we must take steps to accelerate and each of them should be reduce the inflationary effect of the Gov- increase the production of essential materials, 535 [193] July I9 Public Papers of the Presidents products, and services. I recommend, will be met with force. This is the signifi- therefore, that the Congress authorize, for cance of Korea-and it is a significance national defense purposes, production loan whose importance cannot be over-estimated. guarantees and loans to increase production. I shall not attempt to predict the course of I also recommend that the Congress au- events. But I am sure that those who have thorize the making of long-term contracts it in their power to unleash or withhold acts and other means to encourage the production of armed aggression must realize that new of certain materials in short supply. recourse to aggression in the world today In the forthcoming Midyear Economic might well strain to the breaking point the Report, I shall discuss in greater detail the fabric of world peace. current economic situation, and the economic The United States can be proud of the part measures which I have recommended. If it has played in the United Nations action in these measures are made available promptly, this crisis. We can be proud of the unhesi- and firmly administered, I believe we will be tating support of the American people for able to meet military needs without serious the resolute actions taken to halt the aggres- disruption of the economy. sion in Korea and to support the cause of If we are to be successful, there must be world peace. sensible and restrained action by business- The Congress of the United States, by its men, labor, farmers and consumers. The strong, bi-partisan support of the steps we people of this country know the seriousness are taking and by repeated actions in sup- of inflation, and will, I am sure, do every- port of international cooperation, has con- thing they can to see that it does not come tributed most vitally to the cause of peace. upon us. However, if a sharp rise in prices The expressions of support which have should make it necessary, I shall not hesitate been forthcoming from the leaders of both to recommend the more measures of political parties for the actions of our Gov- price control and rationing. ernment and of the United Nations in deal- The hard facts of the present situation re- ing with the present crisis, have buttressed quire relentless determination and firm ac- the firm morale of the entire free world in tion. The course of the fighting thus far in the face of this challenge. Korea shows that we can expect no easy solu- The American people, together with other tion to the conflict there. We are confronted free peoples, seek a new era in world affairs. in Korea with well-supplied, well-led forces We seek a world where all men may live in which have been long trained for aggressive peace and freedom, with steadily improving action. We and the other members of the living conditions, under governments of United Nations who have joined in the effort their own free choice. to restore peace in Korea must expect a hard For ourselves, we seek no territory or and costly military operation. domination over others. We are determined We must also prepare ourselves better to to maintain our democratic institutions so fulfill our responsibilities toward the preser- that Americans now and in the future can vation of international peace and security enjoy personal liberty, economic opportunity, against possible further aggression. In this and political equality. We are concerned effort, we will not flinch in the face of danger with advancing our prosperity and our well- or difficulty. being as a Nation, but we know that our The free world has made it clear, through future is inseparably joined with the future the United Nations, that lawless aggression of other free peoples. 536 dents Harry S. Truman, 1950 July I9 [194] with force. This is the signifi- We will follow the course we have chosen NOTE: On July 24 the White House issued a release Korea-and it is a significance with courage and with faith, because we announcing supplemental estimates of appropria- ortance cannot be over-estimated. tions for the Department of Defense for fiscal year carry in our hearts the flame of freedom. We 1951 amounting to $10,486,976,000, and on August 4 attempt to predict the course of are fighting for liberty and for peace-and the White House announced an additional estimate I am sure that those who have with God's blessing we shall succeed. of supplemental appropriations of $1,155,930,000 ower to unleash or withhold acts ggression must realize that new HARRY S. TRUMAN aggression in the world today strain to the breaking point the peace. 194 Radio and Television Address to the American People States can be proud of the part on the Situation in Korea. July 19, 1950 in the United Nations action in [Delivered from the White House at 10:30 p.m. ] We can be proud of the unhesi- of the American people for My fellow citizens: Korea came about. actions taken to halt the aggres- At noon today I sent a message to the Con- Before and during World War II, Korea and to support the cause of gress about the situation in Korea. I want -was subject to Japanese rule. When the to talk to you tonight about that situation, fighting stopped, it was agreed that troops of the United States, by its and about what it means to the security of of the Soviet Union would accept the sur- support of the steps we the United States and to our hopes for peace render of the Japanese soldiers in the north- nd by repeated actions in sup- in the world. ern part of Korea, and that American forces rnational cooperation, has con- Korea is a small country, thousands of would accept the surrender of the Japanese vitally to the cause of peace. miles away, but what is happening there is in the southern part. For this purpose, the of support which have important to every American. 38th parallel was used as the dividing line. from the leaders of both On Sunday, June 25th, Communist forces Later, the United Nations sought to es- for the actions of our Gov- attacked the Republic of Korea. tablish Korea as a free and independent na- of the United Nations in deal- This attack has made it clear, beyond all tion. A commission was sent out to super- present crisis, have buttressed doubt, that the international Communist vise a free election in the whole of Korea. of the entire free world in movement is willing to use armed invasion However, this election was held only in the challenge. to conquer independent nations. An act of southern part of the country, because the So- people, together with other aggression such as this creates a very real viet Union refused to permit an election for a new era in world affairs. danger to the security of all free nations. this purpose to be held in the northern part. where all men may live in The attack upon Korea was an outright Indeed, the Soviet authorities even refused to with steadily improving breach of the peace and a violation of the permit the United Nations Commission to under governments of Charter of the United Nations. By their visit northern Korea. choice. actions in Korea, Communist leaders have Nevertheless, the United Nations decided we seek no territory or demonstrated their contempt for the basic to go ahead where it could. In August 1948 others. We are determined moral principles on which the United Na- the Republic of Korea was established as a democratic institutions so tions is founded. This is a direct challenge free and independent nation in that part of now and in the future can to the efforts of the free nations to build the Korea south of the 38th parallel. liberty, economic opportunity, kind of world in which men can live in In December 1948, the Soviet Union stated equality. We are concerned freedom and peace. that it had withdrawn its troops from north- our prosperity and our well- This challenge has been presented ern Korea and that a local government had but we know that our squarely. We must meet it squarely. been established there. However, the Com- parably joined with the future It is important for all of us to understand munist authorities never have permitted the eoples. the essential facts as to how the situation in United Nations observers to visit northern 41-355-65-37 537 [194] July I9 Public Papers of the Presidents Korea to see what was going on behind that curity Council to restore peace in Korea. part of the Iron Curtain. These actions by the United Nations and It was from that area, where the Com- its members are of great importance. The munist authorities have been unwilling to free nations have now made it clear that law- let the outside world see what was going on, less aggression will be met with force. The that the attack was launched against the Re- free nations have learned the fateful lesson public of Korea on June 25th. That attack of the 1930's. That lesson is that aggression came without provocation and without warn- must be met firmly. Appeasement leads ing. It was an act of raw aggression, with- only to further aggression and ultimately to out a shadow of justification. war. I repeat that it was an act of raw aggres- The principal effort to help the Koreans sion. It had no justification whatever. preserve their independence, and to help The Communist invasion was launched in the United Nations restore peace, has been great force, with planes, tanks, and artillery. made by the United States. We have sent The size of the attack, and the speed with land, sea, and air forces to assist in these op- which it was followed-up, make it perfectly erations. - We have done this because we plain that it had been plotted long in advance. know that what is at stake here is nothing As soon as word of the attack was received, less than our own national security and the Secretary of State Acheson called me at In- peace of the world. dependence, Mo., and informed me that, So far, two other nations-Australia and with my approval, he would ask for an im- Great Britain-have sent planes to Korea; mediate meeting of the United Nations Se- and six other nations-Australia, Canada, curity Council. The Security- Council met France, Great Britain, the Netherlands, and just 24 hours after the Communist invasion New Zealand-have made naval forces began. available. One of the main reasons the Security Under the flag of the United Nations a Council was set up was to act in such cases unified command has been established for all as this-to stop outbreaks of aggression in a forces of the members of the United Nations hurry before they develop into general con- fighting in Korea. Gen. Douglas Mac- flicts. In this case the Council passed a reso- Arthur is the commander of this combined lution which called for the invaders of Korea force. to stop fighting, and to withdraw. The The prompt action of the United Nations Council called on all members of the United to put down lawless aggression, and the Nations to help carry out this resolution. prompt response to this action by free peoples The Communist invaders ignored the action all over the world, will stand as a landmark of the Security Council and kept right on in mankind's long search for a rule of law with their attack. among nations. The Security Council then met again. It Only a few countries have failed to indorse recommended that members of the United the efforts of the United Nations to stop the Nations help the Republic of Korea repel the fighting in Korea. The most important of attack and help restore peace and security these is the Soviet Union. The Soviet Union in that area. has boycotted the meetings of the United Na- Fifty-two of the 59 countries which are tions Security Council. It has refused to members of the United Nations have given support the actions of the United Nations their support to the action taken by the Se- with respect to Korea. 538 Harry S. Truman, 1950 July I9 [194] to restore peace in Korea. The United States requested the Soviet selves to meet the deliberately planned attack by the United Nations and Government, 2 days after the fighting started, of the North Korean Communist forces, are of great importance. The to use its influence with the North Koreans have now made it clear that law- which are well-equipped, well-led, and to have them withdraw. The Soviet Gov- battle-trained, and which have at times out- will be met with force. The ernment refused. have learned the fateful lesson numbered our troops by as much as 20 to I. The Soviet Government has said many "Our Army troops, ably supported by That lesson is that aggression times that it wants peace in the world, but tactical aircraft of the United States Air firmly. Appeasement leads its attitude toward this act of aggression Force and Navy and our Australian friends, aggression and ultimately to against the Republic of Korea is in direct flying under the most adverse conditions of contradiction of its statements. effort to help the Koreans weather, have already distinguished them- For our part, we shall continue to support selves in the most difficult of military opera- independence, and to help the United Nations action to restore peace Nations restore peace, has been tions-a delaying action. The fact that they in the world. United States. We have sent are preventing the Communists from over- We know that it will take a hard, tough running Korea-which this calculated attack air forces to assist in these op- fight to halt the invasion, and to drive the have done this because we had been designed to accomplish-is a Communists back. The invaders have been what is at stake here is nothing splendid tribute to the ability of our Armed provided with enough equipment and sup- Forces to convert quickly from the peaceful own national security and the world. plies for a long campaign. They over- duties of occupation to the grim duties of whelmed the lightly armed defense forces war. other nations-Australia and of the Korean Republic in the first few days "The task that confronts us is not an easy sent planes to Korea; and drove southward. one, but I am confident of the outcome." nations-Australia, Canada, Now, however, the Korean defenders have Britain, the Netherlands, and I shall also read to you part of a report reorganized and are making a brave fight that I received from General MacArthur made naval forces for their liberty, and an increasing number within the last few hours. of American troops have joined them. Our flag of the United Nations a General MacArthur says: forces have fought a skillful, rearguard de- and has been established for all "It is, of course, impossible to predict with laying action, pending the arrival of rein- members of the United Nations any degree of accuracy the future incidents forcements. Some of these reinforcements Korea. Gen. Douglas Mac- of a military campaign. Over a broad front are now arriving; others are on the way from commander of this combined involving continuous local struggles, there the United States. are bound to be ups and downs, losses as I should like to read you a part of a report well as successes. But the issue of battle action of the United Nations I have received from General Collins, Chief lawless aggression, and the is now fully joined and will proceed along of Staff of the United States Army. General lines of action in which we will not be with- to this action by free peoples Collins and General Vandenberg, Chief of will stand as a landmark out choice. Our hold upon the southern part Staff of the Air Force, have just returned of Korea represents a secure base. Our cas- search for a rule of law from an inspection trip to Korea and Japan. ualties, despite overwhelming odds, have ountries have failed to indorse This is what General Collins had to say: been relatively light. Our strength will con- "The United States Armed Forces in United Nations to stop the tinually increase while that of the enemy will Korea are giving a splendid account of The most important of relatively decrease. His supply line is in- themselves. Union. The Soviet Union secure. He has had his great chance and "Our Far Eastern forces were organized failed to exploit it. We are now in Korea in meetings of the United Na- Council. It has refused to and equipped primarily to perform peaceful force, and with God's help we are there to occupation duties in Japan. However, of the United Nations stay until the constitutional authority of the Korea. under General MacArthur's magnificent Republic of Korea is fully restored." leadership, they have quickly adapted them- These and other reports I have received 539 [194] July I9 Public Papers of the Presidents show that our Armed Forces are acting with close teamwork and efficiency to meet the for this purpose. This is of great importance. The free nations face a worldwide threat. problems facing us in Korea. It must be met with a worldwide defense. These reports are reassuring, but they also The United States and other free nations can show that the job ahead of us in Korea is long multiply their strength by joining with one and difficult. another in a common effort to provide this Furthermore, the fact that Communist defense. This is our best hope for peace. forces have invaded Korea is a warning that The things we need to do to build up our there may be similar acts of aggression in military defense will require considerable other parts of the world. The free nations adjustment in our domestic economy. We must be on their guard, more than ever be- have a tremendously rich and productive fore, against this kind of sneak attack. economy, and it is expanding every year. It is obvious that we must increase our military strength and preparedness immedi- Our job now is to divert to defense pur- poses more of that tremendous productive ately. There are three things we need to do. capacity-more steel, more aluminum, more First, we need to send more men, equip- of a good many things. ment, and supplies to General MacArthur. Some of the additional production for mili- Second, in view of the world situation, we tary purposes can come from making fuller need to build up our own Army, Navy, and use of plants which are not operating at Air Force over and above what is needed in capacity. But many of our industries are Korea. already going full tilt, and until we can add Third, we need to speed up our work with new capacity, some of the resources we need other countries in strengthening our com- for the national defense will have to be mon defenses. taken from civilian uses. To help meet these needs, I have already This requires us to take certain steps to authorized increases in the size of our Armed make sure that we obtain the things we need Forces. These increases will come in part for national defense, and at the same time from volunteers, in part from Selective Serv- guard against inflationary price rises. ice, and in part from the National Guard The steps that are needed now must be and the Reserves. taken promptly. I have also ordered that military supplies In the message which I sent to the Con- and equipment be obtained at a faster rate. gress today, I described the economic meas- The necessary increases in the size of our ures which are required at this time. Armed Forces, and the additional equipment First, we need laws which will insure they must have, will cost about $10 billion, prompt and adequate supplies for military and I am asking the Congress to appropriate and essential civilian use. I have therefore the amount required. These funds will be used to train men and recommended that the Congress give the Government power to guide the flow of ma- equip them with tanks, planes, guns, and terials into essential uses, to restrict their ships, in order to build the strength we need use for nonessential purposes, and to pre- to help assure peace in the world. vent the accumulation of unnecessary When we have worked out with other inventories. free countries an increased program for our Second, we must adopt measures to pre- common defense, I shall recommend to the vent inflation and to keep our Government Congress that additional funds be provided in a sound financial condition. One of the 540 Harry S. Truman, 1950 July I9 [194] This is of great importance. face a worldwide threat. major causes of inflation is the excessive use Hoarding food is especially foolish. with a worldwide defense. of credit. I have recommended that the There is plenty of food in this country. I and other free nations can Congress authorize the Government to set have read that there have been runs on sugar strength by joining with one limits on installment buying and to curb in some cities. That is perfectly ridiculous. common effort to provide this speculation in agricultural commodities. In We now have more sugar available than ever is our best hope for peace. the housing field, where Government credit before. There are ample supplies of our we need to do to build up our is an important factor, I have already di- other basic foods also. will require considerable rected that credit restraints be applied, and Now, I sincerely hope that every Amer- our domestic economy. We I have recommended that the Congress au- ican housewife will keep this in mind when ndously rich and productive thorize further controls. she does her daily shopping. it is expanding every year. As an additional safeguard against infla- If I had thought that we were actually is to divert to defense pur- tion, and to help finance our defense needs, threatened by shortages of essential con- that tremendous productive it will be necessary to make substantial in- sumer goods, I should have recommended steel, more aluminum, more creases in taxes. This is a contribution to that price control and rationing be im- things. our national security that every one of us mediately instituted. But there is no such additional production for mili- should stand ready to make. As soon as a threat. We have to fear only those short- come from making fuller balanced and fair tax program can be worked ages which we ourselves artificially create. which are not operating at out, I shall lay it before the Congress. This Every businessman who is trying to many of our industries are tax program will have as a major aim the profiteer in time of national danger-and tilt, and until we can add elimination of profiteering. every person who is selfishly trying to get of the resources we need Third, we should increase the production more than his neighbor-is doing just ex- defense will have to be of goods needed for national defense. We actly the thing that any enemy of this coun- uses. must plan to enlarge our defense production, try would want him to do. us to take certain steps to not just for the immediate future, but for the If prices should rise unduly because of obtain the things we need next several years. This will be primarily excessive buying or speculation, I know fense, and at the same time a task for our businessmen and workers. our people will want the Government to take aflationary price rises. However, to help obtain the necessary in- action, and I will not hesitate to recommend are needed now must be creases, the Government should be author- rationing and price control. ized to provide certain types of financial We have the resources to meet our needs. which I sent to the Con- assistance to private industry to increase de- Far more important, the American people escribed the economic meas- fense production. are unified in their belief in democratic required at this time. Our military needs are large, and to meet freedom. We are united in detesting Com- laws which will insure them will require hard work and steady munist slavery. supplies for military effort. I know that we can produce what We know that the cost of freedom is high. use. I have therefore we need if each of us does his part-each But we are determined to preserve our the Congress give the man, each woman, each soldier, each civilian. freedom-no matter what the cost. to guide the flow of ma- This is a time for all of us to pitch in and I know that our people are willing to do uses, to restrict their work together. their part to support our soldiers and sailors purposes, and to pre- I have been sorry to hear that some people and airmen who are fighting in Korea. I mulation of unnecessary have fallen victim to rumors in the last week know that our fighting men can count on or two, and have been buying up various each and every one of you. adopt measures to pre- things they have heard would be scarce. Our country stands before the world as to keep our Government That is foolish-I say that is foolish, and it an example of how free men, under God, condition. One of the is selfish, very selfish, because hoarding re- can build a community of neighbors, work- sults in entirely unnecessary local shortages. ing together for the good of all. 541 [194] July I9 Public Papers of the Presidents That is the goal we seek not only for our- by Air and Naval elements, forced the enemy into selves, but for all people. We believe that continued deployments, costly frontal attacks and confused logistics, which so slowed his advance and freedom and peace are essential if men are blunted his drive that we have bought the precious to live as our Creator intended us to live. time necessary to build a secure base. It is this faith that has guided us in the past, I do not believe that history records a comparable operation which excelled the speed and precision and it is this faith that will fortify us in the with which the 8th Army, the Far East Air Force stern days ahead. and the Seventh Fleet have been deployed to a dis- tant land for immediate commitment to major op- NOTE: Following is the full text of the message from erations. It merits highest commendation for the General Douglas MacArthur which the President commanders, staffs and units concerned and attests quoted in his address. The message was released to their superior training and high state of readiness by the White House on July 20. to meet any eventuality. This finds added emphasis in the fact that the Far East Command, until the The President President's great pronouncement to support the The White House epochal action of the United Nations, had no slightest The following is my current estimate of the responsibility for the defense of the Free Republic Korean situation: of Korea. With the President's decision it assumed With the deployment in Korea of major elements a completely new and added mission. of the 8th Army now accomplished, the first phase It is, of course, impossible to predict with any of the campaign has ended and with it the chance degree of accuracy future incidents of a military for victory by the North Korean forces. The enemy's campaign. Over a broad front involving continuous plan and great opportunity depended upon the speed local struggles, there are bound to be ups and downs, with which he could overrun South Korea once he losses as well as successes. Our final stabilization had breached the Han River line and with over- line will unquestionably be rectified and tactical whelming numbers and superior weapons tem- improvement will involve planned withdrawals as porarily shattered South Korean resistance. This well as local advances. But the issue of battle is chance he has now lost through the extraordinary now fully joined and will proceed along lines of speed with which the 8th Army has been deployed action in which we will not be without choice. Our from Japan to stem his rush. When he crashed hold upon the Southern part of Korea represents a the Han Line the way seemed entirely open and secure base. Our casualties despite overwhelming victory was within his grasp. odds have been relatively light. Our strength will The desperate decision to throw in piecemeal continually increase while that of the enemy will American elements as they arrived by every avail- relatively decrease. His supply line is insecure. He able means of transport from Japan was the only has had his great chance but failed to exploit it. hope to save the situation. The skill and valor We are now in Korea in force, and with God's help thereafter displayed in successive holding actions we are there to stay until the constitutional authority by the ground forces in accordance with this con- of the Republic is fully restored. cept, brilliantly supported in complete coordination MACARTHUR I95 Statement by the President on the Appointment of Charles M. Spofford as Deputy U.S. Representative to the North Atlantic Council. July 20, 1950 MR. Charles M. Spofford, whom I have building the defenses of the North Atlantic appointed Deputy U.S. Representative, area. As I indicated in my message to the North Atlantic Council, will leave for Lon- Congress on Wednesday, we cannot safely don shortly to assume his duties. The Sec- ignore the possibility of aggression in other retary of State and I have discussed with parts of the world besides the Far East, and him the nature of the tasks which lie ahead it is even more urgent now than it was in of the North Atlantic Treaty Organization. May to strengthen the collective defense The North Atlantic Council, in its meet- of the North Atlantic area. ing during May, stressed the urgency of Through the Council of Deputies, which 542 [172] June 26 Public Papers of the Presidents Defense Assistance Program. to the peace of the world. Willful disregard Those responsible for this act of aggres- of the obligation to keep the peace cannot sion must realize how seriously the Govern- be tolerated by nations that support the ment of the United States views such threats United Nations Charter. 173 Statement by the President on the Situation in Korea. June 27, 1950 IN KOREA the Government forces, which corollary of this action I am calling upon were armed to prevent border raids and to the Chinese Government on Formosa to preserve internal security, were attacked by cease all air and sea operations against the invading forces from North Korea. The mainland. The 7th Fleet will see that this Security Council of the United Nations is done. The determination of the future called upon the invading troops to cease status of Formosa must await the restoration hostilities and to withdraw to the 38th of security in the Pacific, a peace settlement parallel. This they have not done, but on with Japan, or consideration by the United the contrary have pressed the attack. The Nations. Security Council called upon all members of I have also directed that United States the United Nations to render every assist- Forces in the Philippines be strengthened ance to the United Nations in the execution and that military assistance to the Philippine of this resolution. In these circumstances I Government be accelerated. have ordered United States air and sea forces I have similarly directed acceleration in to give the Korean Government troops cover the furnishing of military assistance to the and support. forces of France and the Associated States The attack upon Korea makes it plain in Indochina and the dispatch of a military beyond all doubt that communism has mission to provide close working relations passed beyond the use of subversion to con- with those forces. quer independent nations and will now use I know that all members of the United armed invasion and war. It has defied the Nations will consider carefully the conse- orders of the Security Council of the United quences of this latest aggression in Korea Nations issued to preserve international in defiance of the Charter of the United peace and security. In these circumstances Nations. A return to the rule of force in the occupation of Formosa by Communist international affairs would have far-reaching forces would be a direct threat to the se- effects. The United States will continue curity of the Pacific area and to United to uphold the rule of law. States forces performing their lawful and I have instructed Ambassador Austin, as necessary functions in that area. the representative of the United States to Accordingly I have ordered the 7th Fleet the Security Council, to report these steps to prevent any attack on Formosa. As a to the Council. 492 E814 ,M54 WH t: PLAIN by Merle Miller SPEAKING PLAIN SPEAKING raphy of Harry S. Truman WHAT HAPPENED An Oral Biography of Harry S. Truman BEING DIFFERENT DICK DARING! UNDERSTANDING by MERLE MILLER LATE SEPTEMBER 11 REUNION LANCHOLY SOUND AND THE JUDGED THE SURE THING THAT WINTER PPED THE A-BOMB FOUNDED 1010 ISLAND 49 GPPS Published by Berkley Publishing Corporation Distributed by G.P. Putnam's Sons, New York PLAIN SPEAKING THE KOREAN DECISION 283 to try and hold the area the so-called free Chinese, and then about five million of Chiang's d be taken to defend South men between Peking and Nanking surrendered to three hundred thousand Communists, and the Communists used that matériel to run be put up to the President Chiang and his men out of China. I told you. He never was any ut General MacArthur said damn good. ore, General Collins called "They wanted me to send in about five million Americans to rescue Chiefs of Staff] and the him, but I wouldn't do it. There wasn't anything that could be done discover that Mr. Truman to save him, and he was as corrupt as they come. I wasn't going to ey put this to him, and the waste one single American life to save him, and I didn't care what efore, before the rest of us they said. They hooted and hollered and carried on and said I was was on its way to Korea. soft on Communism and I don't know what all. But I never gave rning Cabinet meeting the in on that, and I never changed my mind about Chiang and his gang. 1. He had thought what he Every damn one of them ought to be in jail, and I'd like to live to ked us if we had any com- see the day they are."* oubt in any of our minds Dean Acheson: "Another reason for not using Chiang's troops. If one had to use other than European and American troops, the and approval of it, and I troops required were Koreans. This was their country. They had been nber of the Cabinet would defending it. And it seemed to us that we could far better get the dvance. This is one of the equivalent of thirty thousand troops from reorganizing the Korean really determines action. Army and using them. meet this aggression, we "And finally, we did not wish to raise the political complications the aggression turned out which would have been raised, if we had introduced the Nationalist- appeared to be. Red Chinese controversy into the battle in Korea. We were going to d by Generalissmo Chiang ask many of our European allies to take part in this battle. Some or use in Korea. The Presi- recognized Chiang Kai-shek; some recognized the Red Chinese. And d to this from the Defense it would have been a devisive and not a unifying action, if we took ng about it, we agreed that it. ed to us that these troops "Therefore, we thought it wise to decline, and the President did ops, were not well armed, decline." an they would be helpful. Sir, the other day you mentioned, when you were discussing the nd we did not want to get Tuesday meeting between Mr. Truman and the Congressional leaders you mentioned that there was some talk about asking for a Con- that there was some con- gressional resolution. ean? Acheson "Toward the end of our meeting on Tuesday with the Congres- ps in Korea. How serious sional leaders, Senator Alexander Smith of New Jersey, who was a member of the Senate Committee on Foreign Relations, asked the ve been the use of it? They We sent them about three *For more of Mr. Truman's observations on Chiang and his Madame and others of matériel, sent that to in their crew, see the next chapter. 284 PLAIN SPEAKING President whether or not he thought it would be a good idea if the Congress would pass a resolution approving what the President was doing in Korea or what the United States was doing in Korea. The President said he would take that under advisement. "After the meeting broke up, he asked me to consider it and meet with him later and discuss it. I gave it a good deal of thought and then gave the President this advice, which he followed. It seemed to me that this should not be done. At the moment the troops of the United States were engaged in a desperate struggle in and around Pusan. Hundreds, thousands of them were being killed. The outcome of the battle was not at all clear. It seemed to me if, at this time, action was pending before the Congress, by which hearings might be held, and long inquiries were being entered into as to whether or not this was the right thing to do, or whether the President had the authority to do it, or whether he needed Congressional authority for matters of that sort-we would be doing about the worst thing we could possibly do for the support of our troops and for their morale. "I felt that we were in this fight-and it was a desperate fight- and we had better concentrate all our energies in fighting it and not in trying to get people to formally approve what was going on. "The President accepted this advice. This is what was done. In other words we did not follow up Senator Smith's suggestion. This may well, in the light of events, have been a wrong decision. I don't think so myself. But it can be argued that it was wrong. If the Congress had promptly and without debate passed a resolution en- dorsing vigorously what had happened, this, of course, would have been fine, and it would have nipped in the bud all the statements about the Korean War being Mr. Truman's war and so on. "But that is hindsight, and I have said that I think hindsight is non- sense. It proves nothing." Mr. Secretary, as you know, Mr. Truman has said that the Korean decision was his most important decision. Do you agree with that? "Yes. In this I think he is wholly right. It was a critically im- portant decision, and I think it was important for this reason. This was an occasion upon which a perfectly clear alternative was pre- sented to the United States, an alternative between withdrawing, retreating in front of Russian pressure brought through a satellite, or standing up and fighting and taking the consequences, and Mr. Truman did not shrink from that decision. The United States, under 1242 THE KOREAN WAR, 1950-1953 panied by radio broadcasts asserting it to in the remainder of his division as fast as be "national defense" against an alleged the units came up, General Dean partly ROK "invasion," broke through the scat- snubbed the NKA advance down the pen- tered resistance of elements of the four insula, trading terrain for time, while the ROK divisions in the area. Its objective 1st Cavalry and 25th divisions were being was to seize the capital and the entire rushed from Japan. A 5-day action at South Korean peninsula, thus presenting Taejon (July 16-20) ended when the the free world with a fait accompli. NKA assaulted the 24th Division from 3 1950, June 25-30. United Nations and directions. Dean, personally commanding United States Reactions. The Security his rear guard while the remainder of Council, in emergency session (the the division withdrew, was captured. His U.S.S.R., boycotting the Council, had no battered troops were relieved by the 1st representative present to veto the action), Cavalry Division (July 22), while the called for immediate end to hostilities and 25th Division on its right, together with withdrawal of the NKA, asking member reorganized ROK divisions, slowed the nations to assist. President Harry S Tru- NKA advance in the center and on the man (June 27) ordered General MacAr- north. thur, commanding U.S. forces in the Far 1950, July 7. MacArthur Named Com- East, to support and cover ROK defense mander in Chief United Nations Com- with air and sea forces. MacArthur ef- mand. President Truman made the ap- fected naval blockade of the North Korean pointment in response to a Security coast and furnished air support. Recon- Council request that a unified command noitering the front in person (June 28), be established under a U.S. officer. as Seoul fell, he reported the ROK Army 1950, August 5-September 15. The Pusan to be incapable of stopping the invasion Perimeter. Lieutenant General Walton H. even with U.S. air support. Truman au- Walker, commanding what had now be- thorized use of U.S. ground troops (June come U.S. Eighth Army, stabilized his de- 30). fense on a thinly held line extending along MacArthur's Resources. Aside from the Naktong River some 90 miles north the vessels of the U.S. Seventh Fleet and from Tsushima Strait, thence east for 60 the Far East Air Force (8½ combat more miles to the Sea of Japan. The area groups), U.S. ground forces-mostly in embraced the southeast edge of the Ko- Japan-consisted of 4 understrength divi- rean peninsula, including Pusan, the one sions organized in 2 skeleton army corps. available port. On the north, 5 ROK di- Infantry and artillery units were each at visions, re-equipped but still shaken, at- two-thirds strength in personnel and can- tempted to contain the invaders, while non, and short of antitank weapons. Corps the western flank, where the weight of in- troops, such as medium tanks, artillery, cessant NKA attacks fell, was held by and other supporting arms, did not exist. U.S. troops, now including 2 additional 1950, June 30. U.S. Forces Begin Move to infantry regiments and a Marine brigade. Korea. The 24th Division (Major Gen- The Seventh Fleet protected both sea eral William F. Dean) began movement flanks and harassed NKA movements piecemeal by sea and air into Korea; 2 along the coast, while the Far East Air more divisions were to follow. Force (augmented by an Australian 1950, July 5. Task Force Smith. One un- group), together with carrier-based naval derstrength battalion (2 infantry compa- air, hammered at NKA lines of commu- nies) with 1 battery of artillery, under nication and furnished much-needed close Lieutenant Colonel Charles B. Smith, support. Thanks to the advantage of in- joined the ROK Army near Osan (July terior lines, Walker was able to shift a 4). Next morning an NKA division, with mobile reserve from point to point within 30 tanks, attacked. The ROK troops fled. the perimeter as the NKA attacks nibbled Task Force Smith, completely surrounded, at his front. Several penetrations of the held out for 7 hours. Then, ammunition Naktong River line and a 20-mile NKA exhausted, the survivors cut their way advance in the north (August 26) were out, abandoning all matériel. checked. Choe's forces, now estimated at 1950, July 6-21. Dean's Delay. Throwing 14 infantry divisions supported by several Harry S. Truman, 1950 June 26 [172] the things which goes to funds. By the time the project has been we are using our traditional forms of gov- a vital and effective one. completed, the local government has ac- ernment to solve the problems of the air we will have in this coun- quired new strength and new assurance in age. efficient air transport sys- meeting the problems of its community. This airport exemplifies the spirit of needs for rapid trans- This kind of cooperation between State growth and confidence with which our coun- and local governments and the National try faces the future. We would not build so a system, the Federal Government is one of the most constructive elaborate a facility for our air commerce if great part to play. Air aspects of our national life today. It is we did not have faith in a peaceful future. to the Nation as a making people increasingly aware of their This airport embodies our determination to growing element in our responsibilities as citizens of their commu- develop the marvels of science and invention commerce. Like all nities. It is making them more conscious for peaceful purposes. It strengthens our systems, it is important of the needs and problems of their local economy to do its part in maintaining a Recognizing these governments. It is helping to strengthen the peaceful world. has provided various processes of democracy throughout the Now I dedicate this Friendship Inter- development of our avia- country. national Airport to the growth and devel- it has done from time Such a development is of immeasurable opment of our country. of transportation. importance today, when our country stands I dedicate this great airport to the cause which have been made before the world as one of the leading cham- of peace in the world. airport program have pions of the democratic way of life. Our give us the kind of air NOTE: The President spoke at II:30 a.m. In his greatest strength in the conflict which shakes opening words he referred to Mayor Thomas D'Ales- need. Federal assist- the world today is our ability to show that andro, Jr., of Baltimore, Governor William Preston State and local effort. democracy can solve the problems of the Lane, Jr., of Maryland, Senator Millard E. Tydings of Maryland, and the Most Rev. Francis P. Keough, programs, local people, and provide them with greater op- Archbishop of Baltimore. strengthened and portunities, and fuller lives. This airport At the conclusion of the dedication ceremony, the by virtue of the is an example of democratic government Presidential party boarded the Independence for a flight to Kansas City, Mo. in action. It demonstrates the way in which misleading as the oft- the Federal Govern- aid programs, is 172 Statement by the President on the Violation of the State and local gov- political oratory- 38th Parallel in Korea. June 26, 1950 oratory. How false I CONFERRED Sunday evening with the of the Security Council, the United States to anyone who has Secretaries of State and Defense, their will vigorously support the effort of the by local authorities senior advisers, and the Joint Chiefs of Staff Council to terminate this serious breach of airport, for example- about the situation in the Far East created by the peace. of roads, or low-cost unprovoked aggression against the Republic Our concern over the lawless action taken other projects fi- of Korea. by the forces from North Korea, and our Federal funds. In all The Government of the United States is sympathy and support for the people of initiative must come pleased with the speed and determination Korea in this situation, are being demon- the planning must be with which the United Nations Security strated by the cooperative action of Amer- and local govern- Council acted to order a withdrawal of the ican personnel in Korea, as well as by steps laws and ordi- invading forces to positions north of the 38th taken to expedite and augment assistance of boards or commis- parallel. In accordance with the resolution the type being furnished under the Mutual raise most of the 491 [172] June 26 Public Papers of the Presidents Defense Assistance Program. to the peace of the world. Willful disregard Those responsible for this act of aggres- of the obligation to keep the peace cannot sion must realize how seriously the Govern- be tolerated by nations that support the ment of the United States views such threats United Nations Charter. 173 Statement by the President on the Situation in Korea. 340 June 27, 1950 IN KOREA the Government forces, which corollary of this action I am calling upon were armed to prevent border raids and to the Chinese Government on Formosa to preserve internal security, were attacked by cease all air and sea operations against the invading forces from North Korea. The mainland. The 7th Fleet will see that this Security Council of the United Nations is done. The determination of the future called upon the invading troops to cease status of Formosa must await the restoration hostilities and to withdraw to the 38th of security in the Pacific, a peace settlement parallel. This they have not done, but on with Japan, or consideration by the United the contrary have pressed the attack. The Nations. Security Council called upon all members of I have also directed that United States the United Nations to render every assist- Forces in the Philippines be strengthened ance to the United Nations in the execution and that military assistance to the Philippine of this resolution. In these circumstances I Government be accelerated. have ordered United States air and sea forces I have similarly directed acceleration in to give the Korean Government troops cover the furnishing of military assistance to the and support. forces of France and the Associated States The attack upon Korea makes it plain in Indochina and the dispatch of a military beyond all doubt that communism has mission to provide close working relations passed beyond the use of subversion to con- with those forces. quer independent nations and will now use I know that all members of the United armed invasion and war. It has defied the Nations will consider carefully the conse- orders of the Security Council of the United quences of this latest aggression in Korea Nations issued to preserve international in defiance of the Charter of the United peace and security. In these circumstances Nations. A return to the rule of force in the occupation of Formosa by Communist international affairs would have far-reaching forces would be a direct threat to the se- effects. The United States will continue curity of the Pacific area and to United to uphold the rule of law. States forces performing their lawful and I have instructed Ambassador Austin, as necessary functions in that area. the representative of the United States to Accordingly I have ordered the 7th Fleet the Security Council, to report these steps to prevent any attack on Formosa. As a to the Council. 492 Harry S. Truman, 1950 June 30 [185] Relief Act. It is likewise a 4. Permit reasonable compensation with 7. Include the clarifying definitions of sec- deep concern to me that I find respect to partners and proprietors, thus af- tion 7 of H.R. 3436. to agree with the Committees' fording them the same treatment accorded Prompt enactment of such legislation will H.R. 3436. The language of corporations. make it possible for the Executive agen- alone, or when read in the 5. Preserve jurisdiction of the courts over cies and the courts to discharge the respon- Committees' statements, does not suits now pending and not require any sibilities which I am convinced they cannot acceptable clarification of the claimant to start over again in the presenta- equitably discharge under the measure that Therefore, I see no way to tion of his claim. I am returning without my approval. Act and depend upon its legis- 6. Permit a reasonable time, perhaps sixty to provide an enforceable state- HARRY S. TRUMAN days, for amendment or revival of any claim. imitations. NOTE: See also Item 216. my objections to the scope of and the principles which I be- 184 White House Statement Following a Meeting Between the write into law, I am convinced can be reached upon what President and Top Congressional and Military Leaders 115 has a clearcut obligation To Review the Situation in Korea. June 30, 1950 that end, I wish to repeat that I AT A MEETING with congressional leaders Republic of Korea in repelling the North to approve a bill which limits at the White House this morning, the Presi- and interpretation of the Korean invaders and restoring peace in dent, together with the Secretary of Defense, Korea, the President announced that he had Relief Act as suggested in the Secretary of State, and the Joint Chiefs of authorized the United States Air Force Staff, reviewed with them the latest develop- a bill incorporating the fol- to conduct missions on specific military tar- ments of the situation in Korea. The con- provisions would be fair and gets in northern Korea wherever militarily gressional leaders were given a full review necessary, and had ordered a naval blockade equitable settlement of those of the intensified military activities. of the entire Korean coast. General Mac- at the end of the war, In keeping with the United Nations Se- Arthur has been authorized to use certain ngress feels have been rejected "flimsy technicalities." curity Council's request for support to the supporting ground units. reconsideration of the claims with the provisions of the 185 Address at Valley Forge at the Boy Scout Jamboree. Contractors Relief Act. the basis for technical rejec- June 30, 1950 either a request in writing Governor Duff, President Houghton, Boy that you have chosen to hold your Jamboree the First War Powers Act, Scouts of the world: at this historic shrine of Valley Forge. emand for payment of losses, I certainly appreciate most highly this dec- When George Washington brought his of sustained or impending oration you have given me. I hope I can army to this spot in December 1777, the to be accepted as a basis deserve it, and that I can wear it with honor cause of independence appeared to be lost. to this great organization. His army at that time numbered only II,000 consideration and settle- As Honorary President of the Boy Scouts men-less than one-fourth the number of of subcontractors on the of America, I am proud to open this Scout Scouts attending this Jamboree. Washing- the prime contractors if Jamboree. I understand that there are ton's men were without adequate food. of written request, demand, nearly 50,000 Scouts in this encampment. They were in rags. Some had no shoes. filed with a Government I am glad to see such evidence of the They had to build their own shelter against contractor, or another sub- strength of the Scout movement. And I the bitter weather. The enemy occupied the to August 14, 1945. think it most appropriate in times like these capital city of Philadelphia. Few men be- 41-355 65 36 513 Harry S. Truman , Margaret Truman Did MacArthur have enough military power to support the South Koreans effectively? Would the nations of Western Europe back us in the Security Council, where we were submitting another resolution, calling on them and other free nations to assist us in resisting the North Koreans? Over Secretary of Defense John- son's objections, my father permitted General Hoyt Vandenberg to give the congressional leaders secret details about our air strength in the Far East. Secretary of State Acheson said he had cablegrams from most of the countries of Western Europe, assur- ing him of support in the UN. He also said he did not think the Russians would return to the UN Security Council and exer- cise their veto. Even if they did, they could not veto the resolution which had been passed on Sunday, thanks to the Secretary of State's swift action. Senator Tom Connally summed up congres- sional opinion when he said that it was quite apparent that this was "the clearest test case that the United Nations has ever faced. If the United Nations is ever going to do anything, this is the time, and if the United Nations cannot bring the crisis in Korea to an end, then we might just as well wash up the United Nations and forget it." My father nodded. He vowed that he was going to make abso- lutely certain that everything we did in Korea would be in sup- port of and in conformity with the decision by the Security Council of the United Nations. Secretary of State Acheson then turned to a discussion of the Soviet Union in regard to Korea. He pointed out that the Presi- dent's statement simply referred to communism. The government was doing its best to leave the door wide open for the Soviet Union to back down without losing too much prestige. In connec- tion with this policy, the Secretary of State begged the members of Congress not to condemn the Russians specifically for the Korean crisis. He held out the hope that if we left the door open the Soviet government might take this opportunity to withdraw. Dad's statement, released at 12:30 P.M. on Tuesday, June 27, went through Washington and the other capitals of the free world like an electric shock. Joseph C. Harsch of the Christian Science Monitor, looking back on twenty years in Washington, said, "Never before in that time have I felt such a sense of relief and unity pass through this city." Both the Senate and the House [464] itary power to support the South nations of Western Europe back rose and cheered when the statement was read to them. News- re we were submitting another papers around the nation echoed Mr. Harsch. James Reston of other free nations to assist us The New York Times said it had produced "a transformation in Over Secretary of Defense John- the spirit of the United States government." The New York itted General Hoyt Vandenberg Herald Tribune ran an editorial on the front page calling it "a rs secret details about our air basic contribution to a genuine peace in our disturbed and dis- y of State Acheson said he had tracted world." At 10:45 that night, the UN Security Council, ntries of Western Europe, assur- with the Russians still absent, passed another resolution, calling He also said he did not think on member nations to "render such assistance to the Republic of UN Security Council and exer- Korea as may be necessary to repel the armed attack and restore ey could not veto the resolution international peace and security to the area." ay, thanks to the Secretary of Wednesday was a day for good news. Dad was reassured about Connally summed up congres- the rightness of his decision by Averell Harriman, just back from it was quite apparent that this Europe. Averell described to my father from firsthand knowledge United Nations has ever faced. the feeling of relief which had swept through Europe's capitals ng to do anything, this is the when they learned that America was standing fast. Encouraging annot bring the crisis in Korea news even came from Ambassador Muccio in Seoul. At 10 A.M. ell wash up the United Nations he sent the following telegram: SITUATION HAD DETERIORATED so RAPIDLY HAD NOT at he was going to make abso- PRESIDENT'S DECISION PLUS ARRIVAL GENERAL CHURCH lid in Korea would be in sup- PARTY [heading the survey team my father had ordered] the decision by the Security BECOME KNOWN HERE IT IS DOUBTFUL ANY ORGANIZED KOREAN RESISTANCE WOULD HAVE CONTINUED THROUGH turned to a discussion of the NIGHT. COMBAT AID DECISION PLUS CHURCH'S ORDER He pointed out that the Presi- HAVE HAD GREAT MORALE EFFECT. FORTHCOMING AIR communism. The government STRIKES HOPED DEMORALIZE ENEMY, MAKE POSSIBLE or wide open for the Soviet REFORM KOREAN ARMY SOUTH BANK HAN RIVER. too much prestige. In connec- State begged the members of My father was heartened by other telegrams which flooded into the White House from citizens all over the country. Among them ans specifically for the Korean if we left the door open the was one from Thomas E. Dewey which read: "I wholeheartedly opportunity to withdraw. agree with and support the difficult decision you have made." The only sour note-and even that was not completely sour-came P.M. on Tuesday, June 27, from Senator Taft, who rose in Congress to accuse the Truman other capitals of the free C. Harsch of the Christian Administration of inviting the North Korean attack by permitting Korea to remain divided. Everything that was wrong in the Far twenty years in Washington, e I felt such a sense of relief East, according to Senator Taft, was explained by the administra- th the Senate and the House tion's "sympathetic acceptance of communism." The senator sin- gled out for special criticism a speech that Secretary of State [465] DA566 .9 C5 V.6 WH t: WINSTON S. CHURCHILL HIS COMPLETE SPEECHES 1897-1963 Edited by ROBERT RHODES JAMES Volume VI 1935-1942 Bettman Archive CHELSEA HOUSE PUBLISHERS in association with R.R. BOWKER COMPANY New York and London 1974 10/9 Vinston Churchill A Time of Triumph: 1941 6535 "A STRANGE CHRISTMAS EVE" December 24, 1941 Broadcast, Washington D.C. the situation in forces surren- I spend this anniversary and festival far from my country, far from my family, dvancing rapidly; yet I cannot truthfully say that I feel far from home. Whether it be the ties of blood the fighting was on my mother's side, or the friendships I have developed here over many years of an ominous active life, or the commanding sentiment of comradeship in the common cause of great peoples who speak the same language, who kneel at the same altars and, to a very large extent, pursue the same ideals, I cannot feel myself a stranger here in the centre and at the summit of the United States. I feel a sense of unity and fraternal association over to Chur- which, added to the kindliness of your welcome, convinces me that I have a right to sit at your fireside and share your Christmas joys. in which he had This is a strange Christmas Eve. Almost the whole world is locked in deadly he thought the struggle, and, with the most terrible weapons which science can devise, the nations advance upon each other. Ill would it be for us this Christmastide if we were not sure : If the Allies that no greed for the land or wealth of any other people, no vulgar ambition, no [Editor's Note: morbid lust for material gain at the expense of others, had led us to the field. Here, in the base and its the midst of war, raging and roaring over all the lands and seas, creeping nearer to our general offensive hearts and homes, here, amid all the tumult, we have tonight the peace of the spirit in each cottage home and in every generous heart. Therefore we may cast aside for this morale he night at least the cares and dangers which beset us, and make for the children an on conditions evening of happiness in a world of storm. Here, then, for one night only, each home was better today throughout the English-speaking world should be a brightly-lighted island of happiness and the fact that and peace. In answer to a Let the children have their night of fun and laughter. Let the gifts of Father esident, himself, Christmas delight their play. Let us grown-ups share to the full in their unstinted ighter.) pleasures before we turn again to the stern task and the formidable years that lie he said] : It before us, resolved that, by our sacrifice and daring, these same children shall not be in the great robbed of their inheritance or denied their right to live in a free and decent world. out for the And so, in God's mercy, a happy Christmas to you all. almost as nearly rlands, and the ertain American who are giving ington. ending, except to call for shoring up a sed" Star Wars program in light of cesses scored by the Patriot antimis- tem in the gulf. Overall military The Presidency ig, however, is likely to decrease, ac- to the 1992 budget being submitted Hugh Sidey ek by the Pentagon, which calls for a lion cut in projected 1992 defense of $298.9 billion. George Was There hough the populace is more willing hat it can do for the country than at he in three decades, Bush only T here was a moment in the great ovation to U.S. desert forces when the cameras in the House chamber caught the face of Senator Ted Kennedy, as enraptured about sacrifice on the battlefield, as everyone else by the applause that would not cease. But in the din came a tiny the home front. Whether out of fear echo from more than two years ago at the Democratic Convention, when Kennedy age between the war and oil, or a fevered his audience with his litany of Bush's ditherings, following each charge with Is of doing anything reminiscent of the taunt "Where was George?" eater-wearing, thermostat-lowering Last week George was there, the Commander in Chief who organized and Administration, Bush devoted just launched one of this century's most awesome military exercises. Whether it will fi- nds to the crucial question of ener- nally work is not the question here. His power in some ways has never been greater. The rolling applause for the men and women who serve in the Persian Gulf was a confirmation of sorts, even a little alarming in its hoarse embrace. Most Americans at left him no time to address the marched with Bush, and from the beginning of the crisis there was no doubt just ecommendation of some Energy where he was. Department and White House bud- The aura of war followed Bush all last week, visibly enhancing his stature. More cials for a gas tax big enough to en- than 3,500 people jammed the Washington Hilton for the national prayer breakfast fuel conservation and fund the that Bush attended. The speakers engaged in a kind of nervous one-upmanship in earch for alternative sources (every tribute to God and the G.I. At the Washington Press Club Foundation's big dinner, a gallon raises an extra billion dol- which Bush did not attend, ush ducked the issue even though he aware that the public knows U.S. DIANA WALKER almost no one dared rib the President. One of the few would not be fighting in the Persian good laughs of the night the region were the world's leading came from humorist Dave er of tapioca rather than the reposi- Barry who, professing 70% of the world's oil reserves. In a evenhandedness after vide survey taken last month by bi- some gibes aimed at White h pollsters, oil was most often cited House chief of staff John main reason for the U.S. presence in Sununu, said, "I would now dle East. The U.S. is more reliant on level an equally cheap shot foil today than at any time since the at a high-ranking, influen- shock; imports have doubled since tial Democrat-if there nd last year accounted for more than were any." Speaker of the trade deficit. Though last fall's bud- House Tom Foley laughed iberations did produce a token 5e- a little too hard. And on increase in federal gasoline taxes, Friday when Bush visited sibility of further levies may have three military bases in the cuttled when Republican pollster In Georgia with families of U.S. soldiers South that had units in the Teeter found that Reagan Demo- gulf battle, there was an ere the idea's fiercest opponents. emotional intensity that topped anything Bush had ever encountered in this country. now, Bush has good reason to in- How could the man Kennedy taunted be so resolute? And let's not forget those his intrinsic indifference to such who derided him as a wimp, a lapdog, every divorced woman's first husband, a ter- as block grants and toxic-waste dis- minal preppy. His painful politeness and unwavering loyalty to Ronald Reagan Being Commander in Chief is more through mountainous deficits and Iran-contra bumbling raised the question of his is and important than being com- backbone. He waffled on issues like abortion and taxes, and even his supporters of enterprise zones. But without wondered in dark moments about his inner stuff. What this may suggest is one ential leadership, inertia is likely to more flaw in our system of political assessment. In our dizzy campaigns we analyze in the home front. Television screens a candidate too much from a few one-liners lofted by adversaries or twits. In the throughout the Federal Triangle as debate over terribly complex domestic issues, we frequently heap scorn on even crats play CNN generals rather than marginally open minds that waver a bit. ut the unglamorous work of govern- History shows that the demands of war often reveal special qualities in Presi- educing America's appetite for for- dents not easily detected in the babble of a political campaign. For 5½ months il, finding an affordable way to re- Bush went down a straight road to battle. There have been no black moods for civility to cities that resemble war Bush as there were for John F. Kennedy in the Cuban missile crisis when he be- giving the 20% of America's chil- lieved there was a likelihood of a nuclear exchange. Nor has Bush wandered ho live in poverty a way out, funding through the darkened White House as Lyndon Johnson used to do, as much con- care for the 37 million Americans fused by his own experts as by his enemies in Vietnam. Richard Nixon sometimes ave no health insurance, preserving sought solitude and brooded for hours over decisions on using American power. ter, the air and the land for the next Bush sought out friends and Chinese food. tion-all demand attention, and all It may be that Bush went through all of the known tortures on the way to his deci- love every bit as difficult as liberating sion. But they must have been entirely internal. There is as yet no enemy or friend who -Reported by Dan Goodgame claims to have been witness when Bush was either uncertain or unclear. Some wimp. Gorey/Washington TIME, FEBRUARY 11, 1991 55 300 WAR AND PEACE WAR AND PEACE 301 ceived who were but yesterday the masters of Germany For with the fall of the ancient governments which is at an end, its illicit ambitions engulfed in black disas- rested like an incubus upon the peoples of the Central ter. Who will now seek to revive it? The arbitrary Empires has come political change not merely, but revo- power of the military caste of Germany which once lution; and revolution which seems as yet to assume no could secretly and of its own single choice disturb the final and ordered form but to run from one fluid change peace of the world is discredited and destroyed. And to another, until thoughtful men are forced to ask them- more than that,-much more than that,-has been ac- selves, With what Governments, and of what sort, are complished. The great nations which associated them- we about to deal in the making of the covenants of selves to destroy it have now definitely united in the peace? With what authority will they meet us, and common purpose to set up such a peace as will satisfy with what assurance that their authority will abide and the longing of the whole world for disinterested justice, sustain securely the international arrangements into embodied in settlements which are based upon some- which we are about to enter? There is here matter for thing much better and much more lasting than the selfish no small anxiety and misgiving. When peace is made, competitive interests of powerful states. There is no upon whose promises and engagements besides our own longer conjecture as to the objects the victors have in is it to rest? mind. They have a mind in the matter, not only, but a Let us be perfectly frank with ourselves and admit heart also. Their avowed and concerted purpose is to that these questions cannot be satisfactorily answered satisfy and protect the weak as well as to accord their now or at once. But the moral is not that there is little just rights to the strong. hope of an early answer that will suffice. It is only The humane temper and intention of the victorious that we must be patient and helpful and mindful above Governments has already been manifested in a very all of the great hope and confidence that lie at the heart practical way. Their representatives in the Supreme of what is taking place. Excesses accomplish nothing. War Council at Versailles have by unanimous resolu- tion assured the peoples of the Central Empires that Unhappy Russia has furnished abundant recent proof of everything that is possible in the circumstances will be that. Disorder immediately defeats itself. If excesses done to supply them with food and relieve the distress- should occur, if disorder should for a time raise its head, ing want that is in so many places threatening their very a sober second thought will follow and a day of con- lives; and steps are to be taken immediately to organize structive action, if we help and do not hinder. these efforts at relief in the same systematic manner The present and all that it holds belongs to the that they were organized in the case of Belgium. By nations and the peoples who preserve their self-control the use of the idle tonnage of the Central Empires it and the orderly processes of their governments; the ought presently to be possible to lift the fear of utter future to those who prove themselves the true friends misery from their oppressed populations and set their of mankind. To conquer with arms is to make only a minds and energies free for the great and hazardous temporary conquest; to conquer the world by earning tasks of political reconstruction which now face them on its esteem is to make permanent conquest. I am con- every hand. Hunger does not breed reform; it breeds fident that the nations that have learned the discipline madness and all the ugly distempers that make an of freedom and that have settled with self-possession ordered life impossible. to its ordered practice are now about to make conquest 302 WAR AND PEACE of the world by the sheer power of example and of friendly helpfulness. The peoples who have but just come out from under THANKSGIVING FOR VICTORY the yoke of arbitrary government and who are now coming at last into their freedom will never find the THANKSGIVING PROCLAMATION, ISSUED NOVEMBER 16, treasures of liberty they are in search of if they look for 1918. FROM "UNITED STATES STATUTES AT them by the light of the torch. They will find that LARGE," VOL. 40, PT. 2, PP. 1888-1889. every pathway that is stained with the blood of their own brothers leads to the wilderness, not to the seat of IT has long been our custom to turn in the autumn of their hope. They are now face to face with their initial the year in praise and thanksgiving to Almighty test. We must hold the light steady until they find God for His many blessings and mercies to us as a themselves. And in the meantime, if it be possible, we nation. This year we have special and moving cause must establish a peace that will justly define their place to be grateful and to rejoice. God has in His good pleas- among the nations, remove all fear of their neighbors ure given us peace. It has not come as a mere cessation and of their former masters, and enable them to live in of arms, a mere relief from the strain and tragedy of security and contentment when they have set their own war. It has come as a great triumph of right. Com- affairs in order. I, for one, do not doubt their purpose plete victory has brought us, not peace alone, but the or their capacity. There are some happy signs that they confident promise of a new day as well in which justice know and will choose the way of self-control and peace- shall replace force and jealous intrigue among the na- ful accommodation. If they do, we shall put our aid at tions. Our gallant armies have participated in a tri- their disposal in every way that we can. If they do not, umph which is not marred or stained by any purpose of we must await with patience and sympathy the awaken- selfish aggression. In a righteous cause they have won ing and recovery that will assuredly come at last. immortal glory and have nobly served their nation in serving mankind. God has indeed been gracious. We have cause for such rejoicing as revives and strengthens in us all the best traditions of our national history. A new day shines about us, in which our hearts take new courage and look forward with open hope to new and greater duties. While we render thanks for these things, let us not forget to seek the Divine guidance in the performance of those duties, and Divine mercy and forgiveness for all errors of act or purpose, and pray that in all that we do we shall strengthen the ties of friendship and mutual respect upon which we must assist to build the new structure of peace and good will among the nations. Wherefore, I, Woodrow Wilson, President of the United States of America, do hereby designate Thurs- 303 A Great American Screw-Up The U.S. and Iraq, 1980-1990 _Paul A. Gigot "Rarely has a government been more expect- patrick fought to have the word removed, and ant. We just expected wrong." it finally was. But, she and other officials -Thomas Schelling, from the foreword to recall, everyone in the Cabinet and President Pearl Harbor: Warning and Decision, by Reagan himself wanted to condemn the "pre- Roberta Wohlstetter emptive violence" of the Israeli attack. No one at a senior level thought that Iraq's O N JUNE 19, 1981, Israeli Prime potential nuclear capability represented the Minister Menachem Begin ad- greater threat to American interests. dressed some 5,000 Holocaust The U.S. response to the Osirak bomb- survivors at the Wailing Wall in Jerusalem. ing is the symbolic beginning of a decade of Twelve days earlier Israeli warplanes had American misjudgment. The climax was undertaken a spectacularly successful bomb- Iraq's invasion of Kuwait on August 2, 1990, ing of Iraq's nuclear reactor, Osirak, named an invasion that caught nearly everyone in after Osiris, the Egyptian god of the dead. the U.S. government by surprise. How could "What's the difference if it's radiation and not our experts have been SO wrong? A complete Zyklon B gas?" Begin justified the bombing answer must await the first-hand testimony to the crowd, according to witness Allan of officials who made the decisions and, espe- Gerson. "It's still aimed at our children and cially, the unveiling of the historical record. ourselves." But from numerous interviews and the avail- On the same day at the United Nations, able public record, it is possible to make a few U.S. Ambassador Jeane Kirkpatrick was pre- judgments about a foreign-policy tragedy paring to cast a vote on the Osirak bombing. that rivals Dean Acheson's failure to include She would vote to condemn Israel, not Iraq, Korea in the U.S. "containment" perimeter for a "clear violation of the United Nations in 1950. Charter and the norms of international con- In her classic book on Pearl Harbor, duct." The Security Council vote was 15-0, Roberta Wohlstetter writes about the diffi- without abstentions. culty of selecting genuine policy "signals" Within the U.S. government, the only from a world of "noise." Once any signals are debate was whether it should work to strike found, they must then be assessed to see if the word "aggression" from the United Na- they should change the prevailing policy "hy- tion's condemnation. Ambassador Kirk- pothesis." Regarding Iraq, policy-makers all claim to have heard the aggressive signals Paul A. Gigot writes the "Potomac Watch" col- from Saddam Hussein. "There were no illu- umn for the Wall Street Journal. sions about Saddam," says Richard Murphy, The National Interest-Winter 1990/91 3 the Reagan administration's assistant secre- 1967. The rise of Ayatollah Khomeini and 19 tary of state for Near Eastern and South the taking of American hostages changed ex Asian affairs, in a typical comment. And everything. ace certainly Saddam's signals were loud. Suddenly, the United States was Iran's What U.S. officials failed to do, how- "Great Satan." Iran's new radical leaders the ever, was to use those signals to change their vowed to spread their Shiite brand of Is- 19 hypothesis about Saddam's intentions. They lamic fundamentalism throughout the Gulf. tar could not shake what even they themselves Carter administration officials began to turn shi now call "the mindset" about Iraq. They let their attention toward a new "pillar of sta- gir the accumulating evidence fit their favored bility" in the Gulf, Saddam Hussein's Iraq. suj hypothesis, rather than change that hypoth- Howard Teicher, a Defense Department esis to fit the new evidence. They had con- official at the time, who later joined the sai cluded that Saddam's growing threats were Reagan National Security Council, wrote a to meant to coerce concessions from Kuwait, classified fifty-page paper warning of the Ar not to invade, even up to the day before the dangers of this tilt and predicting that Iraq so actual invasion. would invade Iran. No one paid much at- Ba From this mistake flowed a second one: tention. "The prevailing view was that per- for the failure to signal American intentions. haps we could encourage moderation, and so U.S. officials thought that conciliation, rather work with Iraq," Teicher recalls. By April So than a new policy of containment, had a 1980, National Security Adviser Zbigniew W better chance of persuading Saddam not to Brzezinski could assert that, "We see no sh invade. So when they did send messages fundamental incompatibility of interests be- qu warning Saddam, the messages were mixed tween the U.S. and Iraq." the in a way that Saddam could plausibly inter- The onset of the Reagan administration pret as appeasement. Perhaps U.S. officials accelerated this trend. Even when Iraq in- ing are right to say that nothing they could have vaded Iran, the overriding U.S. view was ch said or done would have stopped Saddam that Iran was stronger and would be by far de from invading; no one can know. But what is the greater threat if it emerged from the war "A indisputable is that U.S. policy offered no dominant in the region. Publicly, the U.S. ab deterrent to his invasion. remained neutral in the war, but behind the ha Perhaps most troubling, the failures were scenes it tilted sharply toward Iraq. "There su systemic. There are few heroes in this drama, was a snowballing effect," says Teicher. Re and none with enough rank to have been able "There was more and more stuff we were we to begin a reconsideration of policy. Cer- doing with the Iraqis." th tainly no one ranking in the Bush administra- ca tion is bathed in glory. No senior official T HE UNITED States, in effect, wa played the skeptic that George Ball did became Iraq's silent ally., In toward Vietnam policy under LBJ. In the 1982, the U.S. took Iraq off its list of T weeks since the invasion, Congress has tried nations promoting terrorism. A year later it th to take credit for having more prescience than launched Operation Staunch, an attempt to be the Bush administration, but this is revision- persuade other nations to stop selling arms in ism. Congress shares responsibility. to Iran. No similar effort was made toward re The decade of miscalculation has its roots Iraq, which became a favorite arms cus- igi in the Iranian Revolution of 1979. For two tomer of France and the Soviet Union, ity decades before the fall of the Shah, the among other nations. We began to share TI United States had viewed Iran as its strategic intelligence information with Iraq and, by bulwark in the Persian Gulf. U.S. relations 1984, the U.S. and Iraq had resumed full ab with Iraq, by contrast, had been virtually diplomatic relations. This decision un- th non-existent since normal ties were cut in leashed official credit guarantees that, by in 4 The National Interest-Winter 1990/91 nd 1990, had amounted to a U.S. taxpayer basis for President Reagan's failed opening exposure in Iraq in the billions of dollars, and sale of arms to Iran. Congressional inves- according to Lally Weymouth. tigators scorned any attempt to deal with Iran The final, and perhaps decisive, tilt was as futile, even absurd, but they never ques- the U.S. decision to reflag Kuwaiti tankers in tioned the ongoing assistance to Iraq. Peter 1987. Though Iraq had started the so-called Galbraith, a Senate Foreign Relations and tanker war, Iran had escalated it to include Iran-contra Committee aide, says the Iraqis shipping from Iraq's Arab allies. The reflag- gave him extraordinary access to Iraqi Kur- ging made it difficult for Iran to attack Iraq's distan in 1987 in large part because "the Iraqi supply lines through Kuwait. Ambassador thought we were doing the Throughout this period, it should be Lord's work." the said, Iraq did show a more moderate face But anyone even remotely associated a toward the West. It became less hostile to the with the opening to Iran was forced out of he Arab-Israeli peace process. Saddam expelled government. Teicher, for one, was purged some (but not all) leading terrorists from from the NSC. The consequences would echo Baghdad. Iraq's ambassador to Washington through the events of 1990. "No one who saw for most of the 1980s, Nizar Hamdoon, had a what happened to us was going to come near soothing, conniving charm similar to that of engaging with Iran at any level," says Tei- South Korea's Tongsun Park in the 1970s. cher. Congress's Iran-contra vendetta must When an Iraqi missile hit an American war- bear some of the responsibility for creating an ship in the Gulf, the USS Stark, Saddam environment in which dissenters on the Gulf quickly apologized and paid $27 million to could not be heard. the families of the thirty-seven victims. Iran's surprising decision to end the war, Other Arabs made a point of underscor- in August 1988, offered a new chance for the ing the "change" in Saddam's behavior. Tei- United States to reassess its Gulf policy. cher recalls a meeting with Egyptian Presi- Instead, even as the strategic circumstances dent Hosni Mubarak in April 1982: changed, "the mindset" continued. "Mubarak gave me a fifteen-minute lecture In late August, ethnic Kurds began about how Iraq had changed. He said, 'You streaming over the Iraqi border into Turkey. he have to do everything you can to make Iraq Their testimony and physical condition- survive the war. You have to tell President discolored and burned skin, blurred vision, Reagan.' He kept shaking my hand and shortness of breath-provided evidence that wouldn't let go." The combined impact of Iraq had used chemical weapons against its this effort was that a large portion of Ameri- own population. The Reagan administra- ca's policy elite concluded that Saddam really tion-and the rest of the West-reacted with was "someone we could work with." what can politely be called restraint. The In There were a few dissenters, of course. State Department publicly condemned the of Teicher and Graham Fuller, a CIA analyst at attack, but privately also sent a message of it the time, collaborated on a memo in 1985 that conciliation to Iraq. As one State official told to became notorious during the Iran-contra hear- the New York Times on September 8, 1988: ings two years later. They argued that Iran "The approach we want to take is that, 'We remained a strategic prize that should not be want to have a good relationship with you, ignored, and that Saddam's domestic barbar- but that this sort of thing makes it very ity meant his "change" might be cosmetic. difficult.' Their views were debated and rejected. The mixed message continued as a battle But that rejection, perhaps understand- raged in Congress over U.S. sanctions against able at the time, took on a tragic cast during Iraq. Secretary of State George Shultz pri- the Iran-contra hearings. Their memo was vately complained to Iraq's foreign minister interpreted by Congress as the intellectual and received a promise that Iraq would not A Great American Screw-Up 5 use gas again and would attend an arms- could no longer perform its historic "balanc- control conference the next January. "It was ing" role against Iraq. The threat of promot- in enough to persuade us that working on it ing Shiite fundamentalism was gone. The privately was enough to be productive," says new Gulf threat came from the potential for stor Murphy, State's Middle East point man at Iraqi regional dominance. According to a lilz the time. "And sanctions would not be pro- source familiar with it, the memo argued "T ductive." that, "The logic of power is that a regional Ho After the chemical attacks, the Senate hegemon would want any external power out it, passed tough unilateral sanctions, 87-0. The of the region." That meant it was only a tha Reagan administration responded with fero- matter of time before Saddam would agitate per cious lobbying that first watered the sanc- against any American presence. So the the tions down, then finally killed them. The United States should make overtures to Iran, det administration never offered a compromise ending both the trade embargo and Opera- Th for even modest sanctions. American busi- tion Staunch, and consider a "containment" and nesses with sales to Iraq-rice millers, chem- strategy against Iraq. "bu ical companies, and others-also lobbied fu- Khalilzad's memo received wide internal shit riously against sanctions. In the end, House circulation and was debated at the highest Pre Foreign Relations Committee Chairman levels. But as one official familiar with the dire Dante Fascell asked that sanctions be period observes, "That was pissing into the stripped from the tax bill to which they had wind in Washington, and still is." Eventu- earlier been attached. Galbraith says he re- ally, the policy review suffered the fate of ceived a 5 a.m. call on the last day of the many such efforts: it was leaked to the press. fust session informing him that the sanctions had A story in the New York Times described the thre been pulled in the dead of night. effort as an attempt "by middle-level officials esc It is impossible to know if U.S. sanctions to re-evaluate American policy toward Iran." Ara in 1988, or later in 1990, would have changed A November election loomed, and the Rea- eve Saddam's behavior. But it is possible to spec- gan administration was coming to an end. Zal ulate on the lesson Saddam learned about The review was killed. am Western resolve after his chemical attacks. "He learned that his actions would be met IN 1989, the incoming Bush adminis- blis solely with rhetorical opposition," says Gal- tration had another chance to recon- Cou braith. Saddam had committed a horrendous sider Gulf policy. It did conduct a long Jord act-the first use of gas since Hitler-yet his "strategic review," but its conclusions were Sov only cost was to have one of his senior aides close to those of the Reagan team. gov politely dressed down by George Shultz. This is not surprising, given that many of Stat Meanwhile, inside the State Depart- the new Bush appointees had also helped would ment, a prominent member of the policy make earlier Mideast policy. Richard Haass, way planning staff was urging a wholesale change the new Middle East point man at the NSC; regi in Gulf policy. Zalmay Khalilzad, a Colum- had worked in the Defense Department when in B bia University professor hired to offer advice the Carter administration began to consider wea on Afghanistan and the Persian Gulf, wrote overtures to Iraq. Dennis Ross, now head of sign the most prescient piece of analysis produced State's policy planning shop, had worked in he about the Gulf in the U.S. government. He the late Reagan NSC before joining the Bush "By concluded that Iraq had replaced Iran as the presidential campaign. His new deputy, Bill Isra foremost threat to American interests in the Burns, had worked with him at the NSC. And region. Richard Fairbanks, who headed the Bush tear The Khalilzad logic was geopolitical: campaign's Middle East policy team, had also pol Iran had emerged from the war far weaker worked on Middle East issues in the Reagan De than anyone had thought, so weak that it years. By then out of government, Fairbanks had 6. The National Interest-Winter 1990/91 oric "balanc- was until recently also Iraq's registered agent policy, including sanctions. Ross was "sym- of promot- in Washington. pathetic," say sources, but never really fo- gone. The Most of these officials knew and under- cused on the issue. The April remarks finally potential for stood the strategic arguments made by Kha- got his attention. Ross and John Kelly, the ording to a lilzad. But they expressly rejected them. assistant secretary for Near Eastern affairs, emo argued "The mindset" persisted. As one White have told reporters they went to Secretary of a House official who developed the policy put State James Baker and urged a new policy of 1 out limited sanctions against Iraq. Baker is said to buld ntainment" power regional So Opera- only agitate it, after the Iran-Iraq War "there was a sense was a that the Gulf had come out of a difficult have agreed. period and was getting better." Both sides in But the policy review died aborning. e. the the war were thought to be exhausted. "The Baker turned the effort over to Robert Kim- res to Iran, detente analogy" prevailed, says this source. mitt, State's undersecretary for political af- and The U.S. might not like everything Iraq did, fairs, who made a case to the interagency and might detest its human rights record, "deputies committee," a set of officials just "but if we could have a more normal relation- below the Cabinet level. Accounts differ on de internal ship with Iraq, why not try?" In mid-1989, what happened next. By State's account, its he highest President Bush signed a national security initiative died after it met resistance from the with the directive implementing detente toward Iraq. Commerce Department and the NSC staff, g into the including NSC adviser Brent Scowcroft. " Eventu- LIKE THE SOVIETS in the 1970s, Other sources, the majority by far, insist he fate of however, Saddam Hussein re- that State never really made much of an the press. fused to cooperate. Beginning in late 1989 effort. "My impression was they were wor- cribed the through July of 1990, he undertook a series of ried more about public positioning than el officials escalating threats and actions toward his about the policy," says one official. Another ard Iran." Arab neighbors and the United States that claims, "I don't know what was said to the the Rea- everyone agrees signaled hostile intentions. secretary, but State did not represent a policy an end. Zalmay Khalilzad's predictions about Sadd- position that was at variance with anyone am's regional ambitions were coming true. else's." The meeting reached a consensus not On February 24, 1990, Saddam gave a to renew commodity loan credits to Iraq, but adminis- blistering speech to the Arab Cooperation to attribute this decision to a scandal involv- to recon- Council, a regional club meeting in Amman, ing a bank. "We tried to de-politicize the it a long Jordan. Saddam warned that with declining decision," says one of the deputies, in order ons were Soviet power, "the Arab Gulf region will be not to risk antagonizing Saddam. (On April governed by the wishes of the United 13, the Agriculture Department suspended many of States." He implied that no "good" Arabs farm credits, citing not the works of Saddam, 0 helped would want this and so they should look for but financial irregularities.) The policy re- d Haass, ways to undermine U.S. influence in the view, such as it was, had ended. the NSC, region. In March, Iraqi agents were arrested The review's failure is partly explained ent when in Britain for smuggling parts to build nuclear by the way national-security advice is trans- consider weapons. Then on April 2, Saddam sent a mitted to President Bush. The administration head of signal even the deaf could hear. He declared really has two national-security policy sys- orked in he had binary chemical weapons and that, tems. The first, and least important, is the he Bush "By God, we will make the fire eat up half of formal interagency process, led by the NSC. uty, Bill Israel, if it tries to do anything against Iraq." But this NSC staff is one of the least powerful SC. And The April speech inspired the Bush in years, and its leader, Scowcroft, is a e Bush team's only serious reconsideration of its Iraq cautious man who is more manager than had also policy. As early as January, junior aides to strategic thinker. The other, much less for- Reagan Dennis Ross in State's policy planning office mal, system is dominated by George Bush's irbanks had been urging a change to a "containment" close friend, James Baker, his small team of A Great American Screw-Up 7 uncover aides, and whatever allies they seek to in- impression of you." Dole added that Presi- Williar clude. This second system is the route by dent Bush would probably veto sanctions TI which virtually every major national-security against Iraq and that, "We in Congress also could policy change has been made during the Bush try to exert our utmost efforts in this direc- "It is years-for example, the decisions to engage tion." Howard Metzenbaum, the Ohio Dem- Mikhail Gorbachev and to negotiate with ocrat, chimed in that, "After listening to you question Cambodia. for about an hour, I realized you are a strong Iraq I domes But this system's strength is also its and an intelligent man, and that you want weakness: it relies on a small nucleus of peace." A month later, Metzenbaum opposed govern back t people, literally a handful of aides. If an issue anti-Iraq sanctions in the Senate (but still falls outside their radar screen, it is probably later supported them). ment being run on autopilot by the permanent When Saddam attacked the Western left it added bureaucracy. This is by all accounts what press for distortions, Wyoming Republican ferred happened toward Iraq. Ross is Baker's Mid- Alan Simpson more or less agreed: "I believe dle East expert, but he is also his main adviser your problem is with the Western media, not retary on Fel on Soviet policy. Throughout 1990, Ross was with the U.S. government, because you are relatio preoccupied with Germany, Soviet politics, isolated from the media and the press. The and arms control, among other issues. For dence press is spoiled and conceited. All the jour- Ba most of the Bush administration, Ross's main nalists consider themselves brilliant political VOA Middle East worry was the Arab-Israeli scientists. They do not want to see anything staff n peace process. The Gulf was left to Kelly and succeeding or achieving its objectives. My his Near East bureau, which would never Six we advice is that you allow those bastards to the fiv change policy without guidance from the top. come here and see for themselves." Simpson Since that guidance never came with any Dole said this only a month after Saddam had force, Kelly never sent Saddam Hussein a was no executed a British journalist accused of being different message. a spy. govern Indeed, what is remarkable about the VOA. various messages the U.S. sent to Saddam in writer T HE EPISODE that may best sym- 1990 is how consistent they were. They bolize the confused messages to official never threatened to break relations; they were Saddam was State's quashing of honest com- A more carrot than stick. They certainly never mentary by the United States Information to see drew a line in the sand. Agency. On February 15, 1990, a Voice of were a State's spokeswoman quickly denounced America editorial, entitled "No More Secret the K Saddam's April speech as "inflammatory, Police," hailed popular revolts against "dicta- editor outrageous, and irresponsible." But ten days torial rule," especially in Ceaucescu's Roma- read: later, five senators, led by Kansas Republican nia. It included the following (and only) spokes Bob Dole, met Saddam in the Iraqi city of reference to Iraq: "The secret police are still strong Mosul. They presented a letter expressing widely present in countries like China, North vidual "very deep concerns" about his chemical and Korea, Iran, Iraq, Syria, Libya, Cuba and in the biological weapons. The letter said these Albania." take vi were "a major barrier to improved relations," Saddam must have reacted furiously, be- intere but said nothing about current relations. And cause the response at State was to mollify killed according to a transcript of their meeting him. "Our guess is that the President himself Huss released by the Iraqis (and not disputed, save heard it on February 15," America's ambas- N for minor details, by Dole's office), the sena- sador to Baghdad, April Glaspie, cabled to sough tors were less than profiles in indignation. Washington. She had been called to see Iraq's Vice At the meeting, Dole referred to "[Penn- deputy foreign minister, who protested a ton I1 sylvania Senator Arlen] Specter, whom you "flagrant interference in the internal affairs of to W met and who went away with a very positive Iraq," according to the cable, which was speed 8 The National Interest-Winter 1990/91 that Presi- uncovered by New York Times columnist April 2 "threats." Comments on the draft William Safire. from the NSC asked that this be changed to sanctions also The U.S. responded with what Saddam Saddam's "remarks." Another NSC comment: ngress this could easily have read as a collective grovel. "Emphasis on Iraq misplaced given U.S. direc- Ohio Dem- "It is absolutely not United States policy to policy, other issues." The final draft included question the legitimacy of the Government of only a mild rebuke to Iraq for "reckless words to you Iraq nor to interfere in any way in the and actions." a strong domestic concerns of the Iraqi people and The mixed messages continued up to the you want opposed government," Ambassador Glaspie wrote August 2 invasion. In late May, Haass qui- (but still back to the foreign ministry. "My govern- etly visited Baghdad and had a sharp ex- ment regrets that the wording of the editorial change with the foreign minister and his deputy. Haass "basically said, 'This relation- Western left it open to incorrect interpretation." She added that the editorial could not have re- ship is up to you,' according to a White Republican ferred to Saddam, because "as assistant sec- House source. Haass said the administration "I believe media, not retary Kelly told his Excellency the President is fighting off sanctions in Congress, " 'but on February 12, President Bush wants good you [the Iraqis] are giving us no ammuni- se you are oress. The relations with Iraq, relations built on confi- tion.' " dence and trust. Throughout this period, the Bush team the jour- Back in Washington, Kelly rebuked a was also resisting anti-Iraq sanctions gaining it political VOA representative at a State Department momentum in Congress. Douglas Waller has anything tives. My staff meeting attended by Secretary Baker. reported in the New Republic that Senator Six weeks later, when Saddam complained to Dole put a legislative "hold" on one sanctions astards to the five senators about the Western press, bill right up to the day of the invasion. Simpson Dole replied: "There was one person who Expressing the administration's view of sanc- ddam had was not authorized to say anything about the tions attached to a farm bill, Indiana Repub- d of being government. He was a commentator for lican Senator Richard Lugar said that, "Pas- VOA That person was fired." The VOA sage of this legislation would badly undercut writer had not been fired, though an embassy any possibility we have of influencing Iraqi best sym- official told the senators he had been. behavior in areas from the peace process to essages to After Saddam's complaints, State asked human rights, terrorism to proliferation." nest com- to see all VOA editorials on Iraq before they formation Voice of were aired. So on July 25, one week before the Kuwait invasion, VOA submitted a draft T HE MOST FAMOUS exchange is of course the July 25 meeting ore Secret editorial that would prove to be prophetic. It between Ambassador Glaspie and Saddam in ist "dicta- read: "As a U.S. Defense Department Baghdad. (The transcript was leaked by the i's Roma- nd only) spokesman said this week, the U.S. remains Iraqis, and its accuracy has not been chal- e are still strongly committed to supporting the indi- lenged by State.) It can only be called amaz- vidual and collective self-defense of its friends ing. Saddam threatened and blustered, all a, North Cuba and in the Persian Gulf. The U.S. would but declaring his intent to invade Kuwait. take very seriously any threat that put U.S. Ambassador Glaspie replied: "We have no interests or friends at risk." Kelly's bureau opinion on the Arab-Arab conflicts, like your usly, be- killed even that tepid warning to Saddam border disagreement with Kuwait. I was in mollify t himself Hussein. the American Embassy in Kuwait during the S ambas- Nearly as telling is the way NSC staffers late 1960s. The instruction we had during cabled to sought to tone down an April 30 speech by this period was that we should express no Vice President Dan Quayle to the Washing- opinion on this issue and that the issue is not see Iraq's ton Institute for Near East Policy. According associated with America." tested a affairs of to White House sources who saw it, the This conversation has been taken as the ich was speech draft included a reference to Saddam's decisive, final signal to Saddam of U.S. A Great American Screw-Up 9 weakness, and it may well have been. But it was that he would not invade. Two days later also wasn't far removed from the pattern of Saddam's tanks rolled in. U.S. policy set during the previous years, In their own defense, administration of- and especially the previous five months. ficials point to the fact that Saddam's own Glaspie may have been more fawning (U.S. Arab neighbors reinforced U.S. policy. And officials say she had no specific instructions it is true that, again and again, Egyptian, for the meeting since it was called on very Jordanian, Saudi, and even Kuwaiti officials A short notice), but she was only one part of urged the United States not to say or do "the mindset." anything that might provoke Saddam. Only a Indeed, after Ambassador Glaspie's meet- day before August 2, Jordan's King Hussein ing, with Iraqi troops massed on the Kuwait telephoned President Bush to assure him that border, a cable was sent to Saddam under no invasion was imminent. This Arab mind- President Bush's signature. According to the set, say U.S. officials, meant that a shift to Middle East Policy Survey newsletter (which containment would have required the U.S. to first reported the story) and to sources familiar go it alone. with it, the cable gave a "firm" but general But this is impossible to know for sure message opposing the use of force. It offered since the U.S. never tried to persuade the no specific security guarantees toward Ku- Arabs to change course. And it is disturbing wait, and it held out the hope of better rela- to think that U.S. officials rely so heavily on Isr tions. Still later, on July 31, John Kelly testi- the judgment of Arab officials, whose inter- lys fied before Congress that "we have no defense ests are so clearly different from our own. It tw treaty relationships with any of the [Gulf] is, after all, mainly American men and the countries. We have historically avoided taking women who are now defending Saudi Ara- will a position on border disputes or on internal bia. Israel, moreover, was signaling for be OPEC deliberations, but we have certainly, as months that the United States should shift lik have all administrations, resoundingly called its policy toward containment. Moshe pa for the peaceful settlement of disputes and Arens, the Israeli defense minister, made gu differences in the area." The BBC World Ser- this plea in person to Secretary Cheney in a rig vice reported that Kelly had offered no secur- Washington visit on July 19-20. But U.S. 19 ity guarantee for Kuwait. April Glaspie officials gave greater weight to the Arab clearly was not alone. belief that no Arab leader would ever invade sta To the very end, U.S. officials expected a brother nation. W that Saddam would not invade. By all ac- Could a different policy have deterred hi counts, the intelligence community well doc- Saddam? It is impossible to say. Administra- be umented the Iraqi build-up near Kuwait, but tion officials are naturally defensive about So missed Saddam's intentions until August 1. their decisions, and Secretary Baker has gone to A lone (and so far anonymous) analyst did so far as to denounce as "shameful" the St predict the invasion, according to several "20-20 hindsighting going on." co sources, but the intelligence "consensus" was Perhaps he is right, but in a democracy, ti far more hedged. "The theory was that ev- hindsight can also go by the name of account- st erything he was doing was to coerce" Ku- ability. It is undeniable that U.S. policy la wait, says one ranking source. "He wanted failed to give even the most basic signal that th the money, or maybe the two islands [in the might have deterred Saddam. The policy o Persian Gulf], but not Kuwait. So what was failed to understand the oldest truth of inter- the problem?" One source recalls a meeting national relations: That bullies who threaten S on July 31 with Secretary Cheney and senior American interests cannot be appeased, they Defense Department officials; the consensus must be opposed. 10. The National Interest-Winter 1990/91 Michael Mandelbaum again over the U.S. THE BUSH FOREIGN POLICY war on to bring had Il to n 1989 the greatest geopolitical windfall in the history of course American foreign policy fell into George Bush's lap. In a mere resident six months the communist regimes of eastern Europe col- but the lapsed, giving the West a sudden, sweeping and entirely come: unexpected victory in its great global conflict against the Soviet allies, Union. Between July and December of 1989 Poland, Hungary, had so in East Germany, Czechoslovakia, Bulgaria and Romania ousted Con- communist leaders. Their new governments each proclaimed a commitment to democratic politics and market economics, incture his and the withdrawal of Soviet troops from Europe began. All and this happened without the West firing a single shot. for The revolutions in eastern Europe ended the Cold War by a sweeping away the basic cause of the conflict between the two sure to great global rivals: the Soviet European empire. They did so to by on George Bush's watch, a term that seems quite appropriate. As the revolutions occurred, he and his associates were more more same spectators, than participants-a bit confused, generally ap- best proving, but above all passive. The president kept the United astern States in the background. In response to the most important The international events of the second half of the twentieth cen- tury, the White House offered no soaring rhetoric, no grand the gestures, no bold new programs. This approach served Amer- ica's interests well. Events were moving in a favorable direc- of tion; staying in the background, taking care not to insert the United States into the middle of things, was the proper course cratic of action. The qualities most characteristic of the Bush in presidency-caution, modest public pronouncements and a fondness for private communications-were admirably suited the to the moment. the The end of communism in Europe need not have proceeded so smoothly. There were pitfalls and blind alleys, alternative policies that had serious advocates. The Bush administration Michael Mandelbaum is the Christian Herter Professor of American Foreign Policy at the Paul H. Nitze School of Advanced International Studies of The Johns Hopkins University, and the director of the project on East-West relations at the Council on Foreign Relations. 6 FOREIGN AFFAIRS THE BUSH FOREIGN POLICY 7 steered clear of them all. In so doing, it steered the United aware of the weakness of their country's international position. States into a new world. They were preoccupied with internal affairs, especially dete- But with the end of the Cold War the familiar guideposts of riorating economic conditions and the rising rebelliousness of American foreign policy have disappeared. The revolutions in the non-Russians. Whether or not they recognized that they eastern Europe, taken cumulatively, were a revolution in could end their conflict with the West only by relinquishing international politics, and they have had a revolutionary eastern Europe, they were plainly convinced that they could impact on America's relations with the rest of the world. There give up the empire that Stalin had acquired without putting will be greater discontinuity in foreign policy between the first Soviet security in mortal jeopardy. and second halves of the Bush presidency than between any That conviction might have wavered had the West ostenta- two administrations in the postwar period. tiously celebrated the retreat of Soviet power. By what it The post-Cold War international agenda is beginning to refrained from doing publicly, as much as by whatever private take shape. It is not likely to be dominated by military messages it may have conveyed to Moscow, the Bush admin- confrontations between great nuclear powers, or even by crises istration avoided embarrassing, threatening or otherwise pro- like the one in the Persian Gulf. Instead, economic issues will voking the Soviets. This was the most important contribution predominate, particularly as formerly communist Europe and to the events of 1989 that the United States was in a position to countries in other regions move toward market institutions and practices. For these challenges President Bush's style of make. The administration might also have followed the opposite leadership seems less appropriate. The attributes he lacks— the capacity to define clearly American interests abroad and policy. It could have made common cause with the Soviet Union to try to control the process of change in eastern the policies necessary to pursue them, a mastery of the Europe. Secretary of State James A. Baker was reported in intricacies of economic affairs, and a determination to redress March 1989 to be favorably disposed to discussing that subject the chronic imbalances of the American economy-may well with Moscow.¹ The idea was far from absurd. When commu- be the qualities required for effective leadership in the post- Cold War era. nist governments in eastern Europe were challenged in the past, the Soviet Union intervened to keep them in power, II with the West. There was every reason in 1989 to try to avoid bringing bloodshed and repression and poisoning relations The end of the Cold War took place in two stages. In the last half of 1989, the communist governments of eastern Europe a similar sequence of events. The Bush administration acted wisely in not making the fell; in the first half of 1990, the fate of Germany was decided. In both stages, plausible alternatives existed to the approaches political future of eastern Europe the subject of Soviet- adopted by the Bush administration; at each stage, the admin- American negotiations. Such negotiations would have severely istration chose the proper policy. damaged relations with the Europeans themselves, both east The president could have done what many wanted him to and west, who objected to what they termed a "second Yalta"- do: exult in the West's triumph. He could have celebrated the two great powers deciding Europe's fate without European victory more publicly, more frequently and more emphati- The Soviet Union did not intervene. The Bush administration participation. Negotiations, as it turned out, were unnecessary. cally. Doing so, however, would have jeopardized the neces- sary condition for the revolutions of 1989: Moscow's willing- correctly calculated that the interest of the United States lay in ness to tolerate them. allowing the authentic, peaceful, democratic revolutions to run There was no doubt more than one reason that the Soviet their course. Washington encouraged this process by reassur- leaders decided not to stop the process of political change in ing Moscow that the course of events did not jeopardize eastern Europe in 1989, as their predecessors had done in legitimate Soviet interests. This middle course with the Soviet Hungary in 1956, in Czechoslovakia in 1968 and, indirectly, in Poland in 1981. Mikhail Gorbachev and his colleagues were 1 Thomas Friedman, The New York Times, March 28, 1989. 8 FOREIGN AFFAIRS THE BUSH FOREIGN POLICY 9 Union, between collaboration and confrontation, was im- portant and underappreciated achievement of American an for- played in the postwar period-in NATO, in the European has eign policy. If one of the tests of each presidency after 1945 Community and in other international organizations. been the capacity to manage crises, the president deserves The Bush administration declined to place obstacles in the high be marks for his policies during the six eventful months that path of German unity. Without American support no other may No seen in retrospect as the final crisis of the Cold War. country, or combination of countries, could have hoped to sooner had the last east European revolution been block German unification. But Washington was no more nuclear completed-in Romania-than Europe and the two prescient than any other capital about the pace of events in The powers had to confront the issue of German unity. great Germany. It was motivated in part by a short-term concern march toward the merger of the two Germanys-or, that a fight over unification between West Germany and its by the West-was not initially intended by any rather, toward the collapse of East Germany and its takeover allies would bring to power Germany's Social Democrats, who might adopt a dangerously neutralist foreign policy. Support tive including Bonn. It was the product of the spontaneous government, initia- for Chancellor Helmut Kohl was nonetheless consistent with the of hundreds of thousands of East Germans. By to the proper long-term American approach to the German West in large numbers, even after the opening moving of the Question: that is, support for the right of Germans to decide inner-German border, they voted with their feet against the their own fate, combined with efforts to create conditions in end continued existence of a separate state. They also voted for the which the German decision, especially if in favor of unity, the first of East Germany in March 1990 in a more familiar would not make others, or Germans themselves, feel insecure. free elections ever held in the G.D.R. yielded way: a The key to maintaining a secure Europe was to keep the resounding majority in favor of rapid unification. newly united Germany firmly anchored in an American-led it had had enjoyed and the havoc that Germany had wrought when In light of the four decades of peace that a divided Europe security community. The Bush administration waged a suc- cessful diplomatic campaign on this issue within the frame- been powerful and independent, it was hardly work of the "two plus four" negotiations. These talks involved Prime ing that German unity was not universally welcomed. surpris- British the two Germanys plus Britain, France, the Soviet Union and the United States-the four powers whose victory in World François the Mitterrand each indicated that they were not happy Minister Margaret Thatcher and French President War II gave them special prerogatives in Germany. In the first half of 1990 the administration used this forum to obtain at prospect. Commentators in the United States the wholeheartedly enthusiastic either, and for the same were not Soviet acquiescence on Germany's continuing membership in Germans could not be trusted; or, even if they could reasons: NATO. The final details of the terms of German unity were worked for discarding the security arrangements that had served well be, out without the United States, Britain or France, in the shared so long was unacceptably risky. Had Washington so also summer of 1990 in a meeting between Chancellor Kohl and and and acted on these reservations, it could have slowed President Gorbachev at the Soviet leader's home in Stavropol. States-as well as Britain and France-would have in effect perhaps even blocked German unification. The United The meeting raised the specter of Soviet-German collusion declared that, while every other nation in Europe, and all against the interests of the rest of Europe. Without reconcili- ation between Germany and Russia, however, there could be peoples elsewhere, were entitled to choose their own political no end to the Cold War. Peace in Europe was impossible arrangements, the Germans were not. Such a declaration without an accommodation between its two largest powers. For treatment that Hitler exploited in the 1930s in order to win would have stirred the same kind of resentment at unequal most of the hundred years between the fall from power in 1890 of Bismarck, the original architect of German unity, and have power and launch his ruinous policies. Although it would the 1990 unification of the two German states, Germany and pushed Europe into war, it would have discredited in not the Russia had defined their interests in Europe in ways unaccept- eyes of Germans the important roles the Federal Republic able to each other. This ongoing Russo-German antagonism caused much of the tension, rivalry and war on the continent 10 FOREIGN AFFAIRS THE BUSH FOREIGN POLICY 11 in that period. It now may be hoped that the events of 1990 In part because of this harmony, it proved possible to assemble have brought that era to an end. an international coalition of unprecedented breadth to oppose The Soviet-German rapprochement is not dangerous to Saddam Hussein. others, provided it takes place within a European security Soviet-American cooperation also made possible a promi- framework that includes a continuing American presence. It is role in the gulf crisis for the United Nations, whose its just such a framework that the Bush administration was nent machinery, especially the Security Council, had for most its of maintaining. instrumental in designing, and is apparently committed to history been paralyzed by the great schism between two strongest members. Most important of all, the end of the Cold War and the al- III newfound solidarity between Washington and Moscow Just as America, the Soviet Union and the European nations lowed the United States to undertake military operations on a were beginning the task of constructing a new post-Cold War large larger conflict with the Soviet Union and uncontrolled advan- scale in the Middle East, without the fear of triggering escala- a Europe, Saddam Hussein interrupted them. His invasion, occupation and declared annexation of Kuwait-and the tion to World War III. This was an enormous military American response-dominated U.S. foreign policy in the tage for the United States. latter half of George Bush's second year as president. The gulf crisis, however, does not offer a reliable guide the to President Bush dispatched to the Middle East the largest the post-Cold War world. The United States sent forces to that expeditionary force since the Vietnam War and organized an Middle East for two reasons: to support the principle and impressively wide coalition against Iraq. The American inter- powers must not swallow up weaker neighbors; from vention in the gulf, whatever its outcome, will exert a major stronger to prevent a large fraction of the world's oil reserves influence on future American policy in the region. It may also coming under the control of a brutal, aggressive and unpre- is prove to be the decisive event of George Bush's presidency. dictable tyrant. The principle of sovereign independence the Success could assure his reelection and strengthen his hand at important. Where it is challenged in the years ahead home and abroad; failure could have the opposite effects. United States will surely support beleaguered small states— Even a limited victory for Saddam Hussein would increase the but not by sending 400,000 troops to liberate them. Oil Gulf is a power of forces opposed to the United States and its friends, uniquely valuable resource, one that makes the Persian and have adverse and perhaps disastrous consequences for the the only part of the Third World where Western interests are entire Middle East. sizable enough to justify a large war. The gulf crisis is not, however, a preview of international In the minds of American policymakers, the various con- politics beyond the Cold War. It is an important development, flicts of the Cold War were all connected. The Greek civil war, to be sure, that cannot help but influence American foreign the Korean War, the Vietnam War and others were seen as policy in years to come. But it is not the seminal event from of a global struggle against communism. Each was conse- for its which America's new international role will emerge. quential part not only for what was directly at stake, but The The Iraqi invasion demonstrated that some features of the effect on the Western position in other parts of the world. Cold War persist, even in the absence of the Soviet-American confrontation with Iraq, by contrast, is not connected to rivalry. There are still dangerous people abroad who have the anything beyond the Middle East. Important as the Middle power to jeopardize Western interests. It also demonstrated East is to the United States and the rest of the West, it does not that when those interests must be defended by force the provide the basis for a global foreign policy, as did the conflict meetion principal responsibility continues to rest with the West's lead- with the Soviet Union. ing military power, the United States. The gulf crisis also During the Cold War, wars and conflicts outside Europe their illustrates the changes that the end of the Cold War has derived their importance for the United States from produced in international politics. The United States and the connection to the Soviet Union. With the end of the Cold War, Soviet Union find themselves on the same side of the conflict. they will be far less consequential for American foreign policy. 12 FOREIGN AFFAIRS THE BUSH FOREIGN POLICY 13 The Persian Gulf excepted, the United States is considerably geopolitical conditions. But however benign its motives, a less likely to dispatch forces abroad in the post-Cold War era. Germany armed with nuclear weapons would create uncer- In this sense the gulf crisis belongs to the past, not the future, tainty, alarm and instability in Europe. Perpetuating the of American foreign policy. American commitment to western Europe is a hedge against There is still a military role for the United States to play, but this undesirable and potentially dangerous sequence of events. the regions where American forces will remain useful are This is why the Bush administration's determination to main- those where they were concentrated during the conflict with tain the basic structure of NATO is well advised. the Soviet Union: Europe and East Asia. Their mission, Such a commitment would be designed not so much to deter however, will be different from those they have become an immediate threat from the Soviet Union as to reassure all of accustomed to carrying out. Europe-including Germany and the Soviet Union-that it need not fear a power vacuum. Such a vacuum might compel IV European nations to recalculate their military requirements, Deterrence of the Soviet Union has ceased to be the all- perhaps in ways others would consider as threatening.2 consuming international concern of the United States. Moscow In East Asia, as in Europe, the Soviet threat to America's is withdrawing its troops from Europe, and drawing down its principal ally, Japan, has diminished considerably. Yet the forces in East Asia as well. Equally important, the sources of an American military presence there remains useful for the same expansive Soviet foreign policy-the commitment to the prin- reason. If the United States were to withdraw completely from ciples of Marxism-Leninism and the determination to spread the region, Japan, like Germany, might feel the need to adopt them abroad-have all but disappeared. a more independent military role, including the acquisition of The end of the Cold War, however, does not bring an end to a nuclear arsenal. A nuclear-armed Japan would likewise the system of relations among sovereign states in which threats alarm neighboring countries. In the post-Cold War era, Amer- can arise. The difference is that, henceforth, the dangers to ican military forces in East Asia, as in Europe, can serve as a the security of America's friends in Europe and Asia are likely buffer among countries that, while no longer avowed adver- to be more distant and nebulous than the sharply defined saries, continue to be suspicious of one another and might threat the Soviet Union was seen to pose over the last four conduct more aggressive foreign policies without a reassuring decades. Dangers could still arise, and there is still a role for American presence. the United States to play in dealing with them. West Europe- Providing reassurance will require America's continued mil- ans will continue to share a continent with a Soviet Union that, itary cooperation with other countries, which may prove whatever form it ultimately takes, will be both large and difficult. The United States may not retain all the overseas heavily armed. Europe will need to counterbalance that mili- military facilities and basing rights of the Cold War. The tary power; perpetuating the American commitment is the American presence in the Philippines, for example, is already best way to do so. contracting; the United States has agreed to withdraw its The newly united Germany in particular will need some fighter aircraft from Clark Air Force Base. Similarly, although form of protection. German-Soviet relations are now cordial. the German government will welcome the continuation of an But Soviet military force, particularly Soviet nuclear weapons, American security guarantee, the German people may be give Moscow considerable potential for leverage over Ger- increasingly reluctant to play host to American forces, espe- many should new disputes arise between them. Without some cially American nuclear weapons. If the political difficulties of form of protection, Germans will be vulnerable to Soviet deploying armed forces abroad will multiply in the wake of the pressure. A Germany without a security tie to the United Cold War, however, the forces that the United States will need States might well feel the need to strengthen its own arma- to deploy will be more modest. The military requirements of ments, perhaps even with nuclear weapons. A German nuclear arsenal would not arise from aggressive impulses. Rather, it 2 the distinction between deterrence and reassurance see Michael Howard, 1982/83. "Reassur- would be a prudent, defensive response to a new set of ance On and Deterrence: Western Defense in the 1980s," Foreign Affairs, Winter 14 FOREIGN AFFAIRS THE BUSH FOREIGN POLICY 15 than those of deterrence. reassurance in Europe and Asia will surely be less demanding important in checking Soviet expansion in Europe. It was, rather, a victory of Western ideas, Western political institu- The greatest difficulty in sustaining a policy of reassurance, ironically, may lie in winning support for it in the United tions and, above all, Western economic practices. All three are now ascendant throughout the world. The rejection of socialist abroad is gone. The Cold War provided a succession of States. The forty-year rationale for stationing American troops economic practices and the adoption, at least in principle, of market forms of economic organization is perhaps the broad- American presidents with a powerful justification for station- ing troops overseas and occasionally sending them into battle. est and most important ongoing global trend at the outset of the 1990s. It is a development that is bound to affect America's deployments was to check the Soviet Union. To the American The simple, compelling purpose of the nation's global military relations with the rest of the world. The trend is most dramatically evident in the former com- public, the new purpose-reassurance-is liable to seem munist countries of Europe. Having deposed their old-guard not worth the risk. vague, implausible, the product of tortured logic, or simply communist leaders, all of the east European nations now intend to embark on transitions from centrally planned to In the absence of a Soviet threat the Bush administration market economies. They have announced that they will even- in the Persian Gulf. This president and his successors may well floundered in finding a public justification for its military buildup tually eliminate the cumbersome planning apparatus that dictated targets for production, gradually allow prices to be set continue to support an American military presence overseas. encounter comparable difficulties in persuading the public to by supply and demand, restore the right to own private The same question that was raised about troops in the gulf is property, and sell state-owned enterprises as quickly as possi- likely to be directed at the continuing American deployments in ble to private owners, including foreigners. Some east Euro- Europe and Asia: Why are they there? pean countries, notably Poland, have already begun this pro- cess. In the Soviet Union, too, the transition to a market To answer that question, and to rally public support for a continuing American military presence abroad, what is needed economy is high on the political agenda, although the commit- ment there is more equivocal, and the steps taken so far more to paint a vivid, convincing picture of the new world and is what this administration notably lacks: vision-the capacity modest and hesitant. The rise of the market is evident as well in communist America's interests in it Vision requires the ability to commu- countries outside Europe, even in those where political change nicate not only privately to other leaders, but publicly to the American people. If this president and his successors are able has come slowly or not at all. Although the communist party still holds a monopoly of power in Vietnam, it transformed the to present the appropriate vision, if they are able to make a persuasive case for keeping enough forces in Europe and Asia country almost overnight from an importer to an exporter of to reassure the countries of both regions, then political and its staple food, rice, largely by freeing agriculture from state military disputes of the kind that dominated the Cold War era control. The Vietnamese communists followed in the footsteps are likely to recede. For with the end of the Soviet-American of the successful market reforms in agriculture that began a rivalry and the retreat of Soviet power, the basis for decade ago in China, which also dramatically increased its food though by no means all, of these conflicts has vanished. And many, as production. Nowhere have governments controlled economic activity as security issues lose some of their previous significance, eco- nomic questions will assume a new international importance, thoroughly as in communist states, but after achieving inde- War. particularly those that have arisen out of the end of the Cold pendence from colonial rule many noncommunist Third World countries practiced their own brand of socialism. They emphasized the protection of domestic industries, generous V government subsidies for consumers and producers, and The Cold War ended in victory for the West. It was a victory considerable public ownership of the industrial sector. The not so much of Western arms, although they were certainly popularity of this milder form of socialism has also faded. In India, for example, socialism was an article of deep political 16 FOREIGN AFFAIRS THE BUSH FOREIGN POLICY 17 faith for decades, but in the 1980s its leaders took tentative steps to liberalize the economy. Much of Latin America has in particular, the new democracies are fragile. Their commu- recently turned in this direction as well, Mexico being a nist predecessors were overthrown in part because they pre- particularly dramatic example. sided over economic stagnation. Democratic politics will accu- The collapse of communism in Europe is thus part of mulate popular support to the extent that they are identified broader trend. As the distinguished economist Robert Heil- a with prosperity. broner has observed, "In the materially more advanced The trend in favor of market institutions and practices, tions, 'socialism' as a distinct social objective has disappeared. na- although strong, is not universal. It is weak in Africa and the Nothing is left of it but a better-run capitalism.' Promoting Arab world, and virtually nonexistent in countries such as in capitalism, the then, is a plausible goal for American foreign policy Burma. But even where it is strong, it may not prevail. Market post-Cold War world, especially if the impetus for it reforms are often painful to implement. Removing subsidies comes from foreign countries themselves. Americans have on basic commodities can trigger political unrest, as govern- long history of faith in free enterprise, free markets and free a ments from Egypt to Poland have discovered to their dismay. commerce. They have, it is true, an older, deeper attachment Restructuring a country's industry along more economically to political freedom. But fewer governments would welcome rational lines inevitably throws people out of work. In a market an American role in fostering democracy in their countries system those with skill, initiative or just good luck prosper; others than would seek Western help in establishing market institu- who do less well often resent the prosperity of the fortunate. open to the second but opposed to the first. tions and practices. China's current leaders, for example, are Finally, even where market reforms are initiated, the re- formers will not necessarily use the United States as their Even where a people and its government are dedicated model. The American economy is but one version of a market establishing working parliaments, competitive elections and to free press, other countries can be of only limited assistance. a system, and not necessarily the most attractive. The formerly communist countries of Europe are likely to be drawn to the Political institutions are, after all, built from within. Outside assistance is of course not irrelevant. Democratic structures west European "social market" style of capitalism, as exempli- in place in Japan, Germany and the Philippines in no small are fied by the German Federal Republic, which provides more part because the United States, having occupied those generous welfare benefits than the United States. In East Asia is tries, helped to build them. Such an American role, however, coun- the great economic success stories of the 1970s and 1980s- no longer plausible in the post-Cold War world. Taiwan, Singapore and South Korea-have followed the path Installing a market economy, by contrast, lends itself pioneered by Japan. This model features far closer relations readily to technical and economic assistance from the outside. more between the government and the private sector, especially in fosters The promotion of market practices, moreover, indirectly the allocation of capital, than are found in the United States.⁴ The American, West European and East Asian varieties of markets democracy in at least two ways. First, functioning litical independently of governing authorities, they expand the restrict the power of the state because, by operating capitalist economic organization are nonetheless closer in form to one another than any one of them is to the centrally directed dent space available to the individual. Public space indepen- po- economic systems of orthodox communism, or even to the of the state, in which citizens can organize themselves, is milder versions of socialism that have appeared elsewhere a necessary condition for democratic politics. This is the during the last thirty years. At the end of the Cold War, in part in which, as the old saying goes, "free markets make sense free because of the manner in which it ended, these three versions men." Second, democratic government seems to flourish most of capitalism stand as the models that much of the world now readily in conditions of economic success. In eastern Europe, 4 This typology is drawn from Paul Marer, "Roadblocks to Economic Transformation in 3 "The World After Communism," Dissent, Fall 1990, p. 429. Central and Eastern Europe and Some Lessons of Market Economies," in United States-Soviet and East European Relations: Building a Congressional CadrelEighth Conference, August 25-31, 1990, Dick Clark, ed., Queenstown (MD): The Aspen Institute, 1990. 18 FOREIGN AFFAIRS THE BUSH FOREIGN POLICY 19 Western policy over the last forty years. aspires to adopt. This is perhaps the greatest achievement of period of the Marshall Plan and the present, to which the Bush There is a parallel with the immediate aftermath of World administration's response is not encouraging. To create suc- War II. What the United States helped western Europe and cessful market economies, the countries of eastern Europe and Japan to do in the late 1940s, much of the rest of the world is the Third World will need in the future what the countries of seeking to do at the beginning of the 1990s. There are, to be western Europe enjoyed in the past: a hospitable international sure, important differences between these two periods. The economic environment. Once in place, market institutions in task of economic construction is today more complicated. these countries will need access to capital. This is a particularly World War II left the nations of western Europe with ruined complicated problem for those nations with large external farms and factories, but also with long experience with func- debts. They will need more extensive debt relief-indeed, debt tioning market economies. West Europeans had the skills forgiveness-than they have thus far received. Even with their capital, which the United States supplied. In formerly commu- necessary to operate such an economic system. They needed debt burdens lightened, they will be affected by the price of capital. The lower world interest rates are, the greater the buying, selling, investing and producing in conditions of nist Europe, by contrast, almost no one has any experience in chances for economic success. These nations will also need access to markets in order to sell economic competition. The citizens of these countries must what they produce for hard currency-the lifeblood of any start virtually from scratch to learn the techniques of modern healthy economy. In the first year of the post-Cold War era, economic activity. They must also build the relevant institu- world interest rates were uncomfortably high. The trend in tions; none has a private sector in manufacturing or services, the international trading system, especially among the ad- but not necessarily economic, assistance from richer countries. financial system or a labor market. All this requires technical, a vanced industrial countries to which the new practitioners of market economics will look for export opportunities, was at Eastern Europe, the Soviet Union and much of the Third best uncertain. The Uruguay Round failed to move that World are not yet in a position to benefit from Western capital. system decisively toward greater openness. The reasons for of They must first create economies that can make productive these trends are varied and are hardly the result exclusively of it. The Bush administration is thus not under immediate use American policies-the Europeans are the chief culprits on pressure to undertake a policy that it would, in any event, have trade. Over the last ten years, however, the American contri- great difficulty in launching: a program of large-scale eco- bution to the worldwide cost of capital and the status of global tices. nomic assistance to countries adopting liberal economic prac- markets has not been constructive. Its fiscal imbalances have had quite harmful effects. There is another important difference between 1990 and At the end of World War II, the United States took the lead 1947. Then, only the United States could offer support to in launching international economic initiatives, beginning with struggling democracies. Now, there is a thriving community of the establishment of the International Monetary Fund, the Japan, the which can share the task of promoting market capitalist democracies, encompassing western Europe and General Agreement on Tariffs and Trade, and the Marshall Plan. West Europeans benefited not only from American world over. The United States need not, and systems indeed generosity, but from American leadership. In keeping with should not, be the sole source of support. Here, too, President that tradition, America has initiated recent international ef- Bush's inclinations are in harmony with international condi- forts to lighten the burden of the world's principal debtors and tions. The Bush administration is happy to deal with reform- to lower barriers to trade: the Brady Plan and the GATT'S minded economies on a multilateral basis, working through Uruguay Round. Fund international organizations such as the International Monetary But deficits reduce America's capacity to lead. They limit its and even the European Community, of which the scope for reducing the debt held by its own banks and for United States is not a member. increasing imports from other countries. This, in turn, dimin- There is, however, one important feature common to the ishes American leverage with western Europe and Japan to help solve the debt problem and expand trade. Not only is the 20 FOREIGN AFFAIRS THE BUSH FOREIGN POLICY 21 United States historically the leader of the international risk in the Arabian desert. A budget agreement, he could have nomic system, it is also its biggest member. Its policies have eco- a a argued, would send a signal of resolve at a time when the considerable effect on the system, apart from any efforts it United States was trying to project an image of determination make to guide others in a particular direction. America's may reduced capacity to lead, due to the fiscal imbalances of the against a foreign tyrant. He delivered no such message. If the United States is to play a useful, let alone a leading, 1980s, has obstructed the creation of international conditions role in the reconstruction of the world's economies according world. favorable to the flourishing of market economies around the to market principles, a far greater public appreciation of the The United States has also pushed up the cost of capital by importance of particular economic policies will have to be running large, chronic budget deficits and financing them by developed. What is required to rally support for such policies deficits were not the only cause of the historically high real borrowing in international capital markets. These budget is a credible political explanation of the connection between them and America's international interests. Perhaps such an most important. The budget deficits and the effort to finance interest rates in the 1980s, but they were certainly among the explanation can be provided, but it seems unlikely that this president will do so. them also raised the value of the dollar. This, in President Bush has proclaimed his distaste for the details of depressed American exports, leading to a series of large trade turn, economic policy and for the task of bringing spending into line deficits. Exports declined, imports rose and American indus- with resources. "When you get a problem with the complexi- tries dependent on selling abroad, or in competition with ties that the Middle East has now, and the gulf has now, I enjoy foreign products at home, suffered. These industries de- trying to put the coalition together and keep it together," he manded protection. The United States retreated farther from said in the fall of 1990. "I can't say I just rejoice every time I go free trade during the 1980s than in any comparable period up and talk to [House Ways and Means Committee Chairman since World War II. American protectionism imposed a Dan] Rostenkowski about what he's going to do on taxes. But ticular hardship on Third World countries; the United States par- the way Rostenkowski and his colleagues vote on taxes will has historically taken a far greater share of their exports than have as much to do with the pursuit of American international Japan or western Europe. interests in the post-Cold War era as the way foreign govern- ments, with whose leaders the president has dealt so artfully, VI vote at the United Nations. If economic issues will be ascendant in the post-Cold War Apart from his personal inclinations, Bush's presidency rests era, if an important American goal will be to assist in the on a coalition of forces and interests that offer no political basis establishment of market economies, and if the most immedi- for economic policies in support of the international trends ately useful way to promote market reforms is to reduce favored by the United States. For twenty years Republican America's own economic imbalances, then the 1990 budget presidents have supported American Cold War security com- negotiations were as relevant to the long-term future of mitments, while avoiding the costs of sustaining the interna- American foreign policy as the Persian Gulf crisis. tional economic order designed after World War II. They The way the president went about securing it, however, did Those negotiations finally did produce a budget agreement. have been simultaneously scrupulous in fulfilling the nation's security obligations and delinquent in observing standards of little to convey a strong commitment to the kinds of policies international economic propriety. required to pursue America's international political and eco- Richard Nixon inaugurated this two-track foreign policy by nomic interests in the post-Cold War world. President Bush going to great and expensive lengths to vindicate the Ameri- failed to draw the necessary connection for the public between can commitment to Vietnam and, at the same time, abandon- the nation's fiscal soundness and its international interests, ing the gold-exchange standard and destroying the interna- even in the Persian Gulf. He could have appealed for modest economic sacrifice at a moment when American troops were at 5 Quoted in Time, Oct. 22, 1990, P. 27. 22 FOREIGN AFFAIRS tional monetary system crafted in 1944 at Bretton Woods. Charles Krauthammer Ronald Reagan continued the pattern by presiding over both substantial increases in defense spending, the better to con- THE UNIPOLAR MOMENT deficits, with all the attendant international economic disloca- front the Soviet Union in the early 1980s, and large budget tion. The combination proved to be a formula for electoral E success for them and for their political heir, George Bush.⁶ ver since it became clear that an exhausted Soviet Union In the post-Cold War era, the international interests of the was calling off the Cold War, the quest has been on for a new United States, not to mention the nation's own economic American role in the world. Roles, however, are not invented in priority to what most economists regard as sensible economic well-being, depend on reversing this approach and giving the abstract; they are a response to a perceived world structure. Accordingly, thinking about post-Cold War American foreign policies. Such a reversal will be politically difficult to accom- policy has been framed by several conventionally accepted as- plish, as the protracted wrangling over the budget in 1990 sumptions about the shape of the post-Cold War environment. demonstrated. It is, moreover, a reversal that this president is First, it has been assumed that the old bipolar world would unlikely to achieve. This is so ultimately because George Bush beget a multipolar world with power dispersed to new centers is, personally and politically, a product of the Cold War. He in Japan, Germany (and/or "Europe"), China and a dimin- could hardly be anything else. His skills, ideas and political ished Soviet Union/Russia. Second, that the domestic Ameri- constituency were acquired in a time when the great rivalry can consensus for an internationalist foreign policy, a consen- with the Soviet Union dominated America's relations with the sus radically weakened by the experience in Vietnam, would rest of the world. These qualities served him and the nation substantially be restored now that policies and debates inspired well at the end of the 1980s, but they are likely to be far less by "an inordinate fear of communism" could be safely retired. useful in the era ahead. In historical perspective, George Bush Third, that in the new post-Soviet strategic environment the adeptly, over the disappearance of the kind of world in which may come to enjoy the ironic distinction of having presided, threat of war would be dramatically diminished. All three of these assumptions are mistaken. The immediate States. he was best able to guide the foreign policy of the United post-Cold War world is not multipolar. It is unipolar. The center of world power is the unchallenged superpower, the United States, attended by its Western allies. Second, the internationalist consensus is under renewed assault. The as- sault this time comes not only from the usual pockets of post-Vietnam liberal isolationism (e.g., the churches) but from a resurgence of 1930s-style conservative isolationism. And third, the emergence of a new strategic environment, marked by the rise of small aggressive states armed with weapons of mass destruction and possessing the means to deliver them (what might be called Weapon States), makes the coming decades a time of heightened, not diminished, threat of war. II The most striking feature of the post-Cold War world is its unipolarity. No doubt, multipolarity will come in time. In taxes Lyndon or Johnson's decision to escalate American involvement in Vietnam without increasing with 6 This combination of policies arguably originated in a Democratic administration, reducing domestic spending. Charles Krauthammer is a syndicated columnist. This article is adapted from the author's Henry M. Jackson Memorial Lecture delivered in Washington, D.C., Sept. 18, 1990. Photocopy-Preservation Essay Charles Krauthammer Must America Slay All the Dragons? "Students massacred in China, priests mur- policy degenerates into mindless moralism on the one hand or dered in Central America, demonstrators gunned cynical realpolitik on the other. down in Lithuania-these acts of violence are as The U.S. does not intervene purely for reasons of morality. If wrong as Iraqi soldiers' killing civilians. We can- it did, it would spend itself dry righting every wrong in the world. not oppose repression in one place and overlook Nor does it act purely out of self-interest. If, for example, a genu- it in another. ine pro-Iraqi coup had led Kuwaitis to join voluntarily with Iraq, -Senator George Mitchell, Jan. 29, 1991 the U.S. would hardly have gone to war to reverse that action. (During the oil shocks of the 1970s, suggestions that the U.S. seize "So what does this mean, that we want to stop naked [Iraqi] the oil fields of Arabia were never even taken seriously.) aggression? Does this mean that the United States will indeed Every intervention requires a just cause. That doesn't mean become the policeman of the world?" that every just cause warrants intervention. To warrant interven- -Senator Tom Harkin, Jan. 11, 1991 tion, a cause must at the same time be important to the U.S. The idea that importance ought not matter and that consistency im- Well, gentlemen, which is it? The Demo- pels us to intervene against every injustice is crats first complain that it is hypocritical to op- simply American moralism gone wild. pose injustice x but tolerate injustice V. Then they complain that the U.S. has turned into DAVID SUTER FOR TIME Life presents us with a hierarchy of evils. Being finite, we are forced assign them pri- the world's policeman. How can it be other- ority and even, if necessary, tolerate some less- wise? If stopping one injustice morally com- er evil to fight the greater. Was it wrong to mits us to stopping all injustice, what does that have blinked at the enormities of Stalin for the make the U.S. if not the world's policeman? four years that he was needed in the war It does not take a Kissinger to figure that against Hitler? any nation has to be selective in its attention Take a hard case, Lithuania. For the to the injustices of the world. Those who im- months of the crisis, until Gorbachev went ply otherwise have an agenda-and it is not free-lancing with his peace plan, there seemed to turn the U.S. into the world's policeman. to be a tacit U.S.-Soviet understanding: the It is to turn the U.S. into the world's bystand- U.S.S.R. would stay within the anti-Iraq coali- er. If opposing injustice anywhere obliges us tion, and the U.S. would go easy on criticizing to become involved everywhere, then only a Moscow's repression of Lithuania. Is such a fool would not prefer involvement nowhere. deal conscionable? This false everywhere-nowhere dichoto- One could say that it is foolish, that we are my is the moral pillar of American Isolation- misreading our interests, that in the long run a ism. Wherever the American banner has freed Soviet empire is more important to been raised in the past decade-Grenada, America than a small Arabian principality. Panama, Nicaragua and now the Persian Perhaps, but the critics' charge is not geopolit- Gulf-isolationists have demanded to know, ical. It is moral. Americans, they maintain, How can we in good conscience oppose bad cannot in good conscience uphold freedom in guys there and not land Marines in Port-au- one place and tolerate repression in another. Prince or Cape Town? Yes, they can, and sometimes they must. The question is posed constantly. Only the America is not omnipotent. It cannot be ev- place names change. Mitchell, in his response erywhere. It has to have priorities. One can- to the President's State of the Union address, not equate the utter devastation of Kuwait brought up China, El Salvador and Lithuania. with the cruel but hardly fatal repression of Mario Cuomo, questioning George Bush's motive for interven- Lithuania. There is no doubt that under Gorbachev or his gen- ing in the gulf, asks ironically, Was it designed to curb aggres- erals, Lithuania will continue to exist as a society. There can sion? Then why not intervene in Afghanistan or Tibet? be little doubt that under Saddam, Kuwait will not. The answer is breathtakingly simple. Why are American Foreign policy is an exercise in discrimination. Our re- exertions on behalf of the oppressed. selective? National sources, like our stores of compassion, are finite. We take up interest. arms against those troubles that are both particularly evil and Americans, haunted by the stern visage of Woodrow Wil- particularly threatening to us. And we husband our resources to son, are loath to confess that they do not act for reasons of mo- meet those troubles. That will occasionally mean having to re- rality alone. We would rather not admit that one reason to re- cruit others to help and having to make moral compromises to sist Saddam Hussein is that we are not prepared to see the keep that help. Hence our long minuet with the Soviets over the economies of the West wrecked by the ambition of a foreign Baltics. tyrant. Indeed, some American critics think it a fatal moral After the gulf crisis, we must be equally nimble in reordering criticism of the gulf war to say that if Kuwait had only sand and our priorities. We must immediately turn to a vigorous advocacy no oil, the U.S. would not have rushed to its defense. of Baltic independence. But it would be irresponsible to jeopar- The answer to that charge is, Of course not. And, So what? dize the war effort by doing so during the crisis. War is no time for Foreign policy is not philanthropy. Any intervention must pass moral luxuries. The first task in war is winning it. two tests: it must be 1) right and 2) in our interests. Each is a We cannot slay all the dragons at once. There is no dishon- necessary condition. Neither is sufficient. Otherwise, foreign or in slaying them one at a time. 88 TIME, MARCH 4, 1991 THE WASHINGTON POST Charles Krauthammer A Brain-Dead Party Ten years ago, Daniel Patrick Moynihan pronounced became clear that though low taxes could produce the Democratic Party brain dead. The Democrats had growth and jobs and prosperity, they could not do so "ceased to be a party of ideas," while the Republicans forever because they also produced fantastic debt, now were now "serious about ideas," wrote Moynihan, a man exceeding $3 trillion. with enough ideas of his own to supply several political It was only a matter of time before Bush bent to parties. Moynihan was right. Spent by the success of the reality and agreed to new taxes. That may save the New Deal and having no idea what to do next, by 1980 economy, but it will sink the Republican Party. No- the Democratic Party was intellectually bankrupt. new-taxes was, after all, Bush's only domestic idea. Its It is 10 years later, and another bankruptcy needs to beauty was that it was not just an idea, it was an idea be declared. While blunders are blamed and fingers stopper. No taxes meant never having to say which pointed, the Republican collapse of 1990 is too large to taxes. Republicans were insulated from ever having to be explained simply by the tactical errors of George face the real question of governance: choosing who Bush in the great budget crunch. Republican malaise gets taxed and how much. goes far deeper than that. The party has run out of ideas. Which is why Republican politicians who for a To be sure, it did not have many to begin with. Two decade prospered politically behind the tax shield were to be exact. (Though that was two more than the Democrats had in the 1980s.) One was peace through apoplectic when Bush gave it up. They understood that strength. The other was growth through low taxes. it would leave them defenseless to Democratic charges that they are the party of the rich. Reagan and Bush rode these simple and appealing maxims to three smashing electoral victories. Once Bush came down from the Andrews Summit The Republican problem today is that both ideas are and presented the country with a list of service cuts dead. Peace through strength is now politically obso- and gas and beer taxes, people realized that the game lete. And painless prosperity through low taxes has was up. Somebody was going to have to pay past and proven false. present bills, and Bush had decided which ones. Bush- Peace through strength has been undone by its own onomics was exposed as nothing more than classic (i.e., success. Reagan insisted on strength: increased de- pre-Reagan) Republican trickle-down economics, a fense spending, unpopular missile deployments, honest known political loser. Take away no-new-taxes, and what does the Repub- lican Party stand for? Cutting the capital gains tax, Bush insisted for a while. But this is not just a paltry substitute "Painless prosperity through for no-new-taxes. It is a hopelessly class-biased substi- tute. It plays directly into Democratic hands by reviving low taxes has proven false." the pre-Reagan image of country club Republicanism. In any case, Bush caved on capital gains too. Even half "evil empire" rhetoric (today almost the official Mos- an idea is more than the party is now capable of cow line on Brezhnev's U.S.S.R.), and the Reagan sustaining. Doctrine (the final offensive of the Cold War, which What does a party do when it runs out of ideas? It can bled the Soviets dry in Brezhnev's far-flung Third only hope that the other guy has even fewer ideas. This World empire.) With strength came peace, victory in time, however, the Democrats may not cooperate. The the Cold War. There are many reasons for the collapse soak-the-rich, burden-the-allies, pro-choice Democrats of the Soviet empire, but one of them certainly is that are stirring. It is too soon to say that they are out of the United States did not seek some phony armistice their coma. But there is movement beneath the eyelids. with the Soviets as urged by the post-Vietnam accom- modationists of the '70s. There is only one problem with peace through strength as a unifying and winning political idea. It is now as obsolete as communism. It still has application, of course, in places like the Persian Gulf. But this is a harder sell. Soviet missiles were a threat to the American homeland and Soviet ideology a threat to the American idea. Iraq is neither. Since Vietnam, the Republican Party has been the nationalist party. But as shown by the rise of conserva- tive isolationism, in a post-Cold War world Republicans are finding it much harder to articulate a coherent nationalist program. To be sure, the still nebulous "new world order" is a glimmer of an idea. On domestic policy, however, Republican thinking has collapsed completely. Growth through low taxes, inflated by Bush to no-new-taxes, was by nature a time-limited proposition. Once the Laffer Curve free lunch was shown to be nonsense, it BY TOLES 22 FOREIGN AFFAIRS Ronald tional monetary system crafted in 1944 at Bretton Woods. Charles Krauthammer substantial Reagan continued the pattern by presiding over both front increases in defense spending, the better to THE UNIPOLAR MOMENT tion. with all the attendant international economic disloca- budget deficits, the Soviet Union in the early 1980s, and large con- The combination proved to be a formula for electoral success In for them and for their political heir, George Bush.⁶ E ver since it became clear that an exhausted Soviet Union the post-Cold War era, the international interests of the was calling off the Cold War, the quest has been on for a new United States, not to mention the nation's own American role in the world. Roles, however, are not invented in well-being, depend on reversing this approach and economic the abstract; they are a response to a perceived world structure. policies. Such a reversal will be politically difficult to priority to what most economists regard as sensible economic giving Accordingly, thinking about post-Cold War American foreign policy has been framed by several conventionally accepted as- plish, as the protracted wrangling over the budget in accom- 1990 sumptions about the shape of the post-Cold War environment. demonstrated. It is, moreover, a reversal that this president is First, it has been assumed that the old bipolar world would is, unlikely to achieve. This is so ultimately because George Bush beget a multipolar world with power dispersed to new centers could personally and politically, a product of the Cold War. in Japan, Germany (and/or "Europe"), China and a dimin- with constituency the were acquired in a time when the hardly be anything else. His skills, ideas and political He ished Soviet Union/Russia. Second, that the domestic Ameri- can consensus for an internationalist foreign policy, a consen- Soviet Union dominated America's relations great with rivalry the sus radically weakened by the experience in Vietnam, would rest of the world. These qualities served him and the substantially be restored now that policies and debates inspired well at the end of the 1980s, but they are likely to be far nation less by "an inordinate fear of communism" could be safely retired. useful in the era ahead. In historical perspective, George Bush Third, that in the new post-Soviet strategic environment the may come to enjoy the ironic distinction of having threat of war would be dramatically diminished. he adeptly, over the disappearance of the kind of world presided, in which All three of these assumptions are mistaken. The immediate States. was best able to guide the foreign policy of the United post-Cold War world is not multipolar. It is unipolar. The center of world power is the unchallenged superpower, the United States, attended by its Western allies. Second, the internationalist consensus is under renewed assault. The as- sault this time comes not only from the usual pockets of post-Vietnam liberal isolationism (e.g., the churches) but from a resurgence of 1930s-style conservative isolationism. And third, the emergence of a new strategic environment, marked by the rise of small aggressive states armed with weapons of mass destruction and possessing the means to deliver them (what might be called Weapon States), makes the coming decades a time of heightened, not diminished, threat of war. II The most striking feature of the post-Cold War world is its unipolarity. No doubt, multipolarity will come in time. In Lyndon 0 This Johnson's combination of policies arguably originated in a Democratic taxes or reducing domestic decision spending. to escalate American involvement in Vietnam administration, without increasing with Charles Krauthammer is a syndicated columnist. This article is adapted from the author's Henry M. Jackson Memorial Lecture delivered in Washington, D.C., Sept. 18, 1990. 24 FOREIGN AFFAIRS THE UNIPOLAR MOMENT 25 perhaps another generation or so there will be great powers allied and Soviet support for American action in the gulf and coequal with the United States, and the world will, in structure, speaks of a conspiracy of North against South. Although it is resemble the pre-World War I era. But we are not there yet, perverse for Iraqi leader Saddam Hussein to claim to repre- nor will we be for decades. Now is the unipolar moment. sent the South, his analysis does contain some truth. The There is today no lack of second-rank powers. Germany and unipolar moment means that with the close of the century's Japan are economic dynamos. Britain and France can deploy three great Northern civil wars (World War I, World War II diplomatic and to some extent military assets. The Soviet and the Cold War) an ideologically pacified North seeks Union possesses several elements of power-military, diplo- security and order by aligning its foreign policy behind that of matic and political-but all are in rapid decline. There is but the United States. That is what is taking shape now in the one first-rate power and no prospect in the immediate future Persian Gulf. And for the near future, it is the shape of things of any power to rival it. to come. Only a few months ago it was conventional wisdom that the The Iraqis are equally acute in demystifying the much new rivals, the great pillars of the new multipolar world, would celebrated multilateralism of this new world order. They be Japan and Germany (and/or Europe). How quickly a myth charge that the entire multilateral apparatus (United Nations translates into geopolitical influence is a materialist illusion. can explode. The notion that economic power inevitably resolutions, Arab troops, European Community pronounce- ments, and so on) established in the gulf by the United States Economic power is a necessary condition for great power is but a transparent cover for what is essentially an American status. But it certainly is not sufficient, as has been made clear challenge to Iraqi regional hegemony. by the recent behavior of Germany and Japan, which have But of course. There is much pious talk about a new in Kuwait. And while a unified Europe may sometime in the generally hidden under the table since the first shots rang out multilateral world and the promise of the United Nations as guarantor of a new post-Cold War order. But this is to mistake disjointed national responses to the crisis in the Persian Gulf next century act as a single power, its initial disarray and cause and effect, the United States and the United Nations. The United Nations is guarantor of nothing. Except in a again illustrate that "Europe" does not yet qualify even as a formal sense, it can hardly be said to exist. Collective security? player on the world stage. In the gulf, without the United States leading and prodding, Which leaves us with the true geopolitical structure of the bribing and blackmailing, no one would have stirred. Nothing crisis: a single pole of world power that consists of the United post-Cold War world, brought sharply into focus by the gulf would have been done: no embargo, no "Desert Shield," no threat of force. The world would have written off Kuwait the States at the apex of the industrial West. Perhaps it is more way the last body pledged to collective security, the League of accurate to say the United States and behind it the West, Nations, wrote off Abyssinia. because where the United States does not tread, the alliance There is a sharp distinction to be drawn between real and does not follow. That was true for the reflagging of Kuwaiti apparent multilateralism. True multilateralism involves a gen- vessels in 1987. It has been all the more true of the world's uine coalition of coequal partners of comparable strength and subsequent response to the invasion of Kuwait. stature-the World War II Big Three coalition, for example. American preeminence is based on the fact that it is the only What we have today is pseudo-multilateralism: a dominant country with the military, diplomatic, political and economic great power acts essentially alone, but, embarrassed at the idea assets to be a decisive player in any conflict in whatever part of and still worshiping at the shrine of collective security, recruits the world it chooses to involve itself. In the Persian Gulf, for a ship here, a brigade there, and blessings all around to give its example, it was the United States, acting unilaterally and with unilateral actions a multilateral sheen. The gulf is no more a taking effective control of the entire Arabian Peninsula. extraordinary speed, that in August 1990 prevented Iraq from collective operation than was Korea, still the classic case study in pseudo-multilateralism. Iraq, having inadvertently revealed the unipolar structure Why the pretense? Because a large segment of American of today's world, cannot stop complaining about it. It looks at opinion doubts the legitimacy of unilateral American action 26 FOREIGN AFFAIRS THE UNIPOLAR MOMENT 27 but accepts quite readily actions undertaken by the "world community" acting in concert. Why it should matter to Amer- the low tax ideology of the 1980s, coupled with America's icans that their actions get a Security Council nod from, insatiable desire for yet higher standards of living without beyond me. But to many Americans it matters. It is largely for Deng Xiaoping and the butchers of Tiananmen Square say, is paying any of the cost. One can debate whether America is in true economic domestic reasons, therefore, that American political leaders decline. Its percentage of world GNP is roughly where it has The make sure to dress unilateral action in multilateral clothing. been throughout the twentieth century (between 22 and 26 danger, of course, is that they might come to believe their percent), excepting the aberration of the immediate post- own pretense. World War II era when its competitors were digging out from The spectacle of secretaries of state and treasury flying around But can America long sustain its unipolar preeminence? the rubble of war. But even if one does argue that America is in economic decline, it is simply absurd to imply that the road the world rattling tin cups to support America's Persian Gulf to solvency is to, say, abandon El Salvador, evacuate the litical deployment exposed the imbalance between America's Philippines or get out of the gulf. There may be other good reach and its resources. Does that not imply that geopo- the reasons for doing all of these. But it is nonsense to suggest right and that unipolarity is unsustainable? theorists of American decline and "imperial overstretch" are doing them as a way to get at the root of America's economic problems. It is, of course, true that if America succeeds in running its It is, moreover, a mistake to view America's exertions abroad economy into the ground, it will not be able to retain its as nothing but a drain on its economy. As can be seen in the unipolar role for long. In which case the unipolar moment will gulf, America's involvement abroad is in many ways an essen- be brief indeed (one decade, perhaps, rather than, three tial pillar of the American economy. The United States is, like be because of imperial overstretch, i.e., because America has not or four). But if the economy is run into the ground say, it will Britain before it, a commercial, maritime, trading nation that needs an open, stable world environment in which to thrive. In overreached abroad and drained itself with geopolitical entan- a world of Saddams, if the United States were to shed its glements. The United States today spends 5.4 percent of its unique superpower role, its economy would be gravely wounded. GNP on defense. Under John F. Kennedy, when the United Insecure sea lanes, impoverished trading partners, exorbitant oil States was at its economic and political apogee, it spent almost prices, explosive regional instability are only the more obvious twice as much. Administration plans have U.S. defense spend- risks of an American abdication. Foreign entanglements are ing on a trajectory down to four percent by 1995, the lowest indeed a burden. But they are also a necessity. The cost of since Pearl Harbor. ensuring an open and safe world for American commerce-5.4 An American collapse to second-rank status will be not for percent of GNP and falling-is hardly exorbitant. foreign but for domestic reasons. This is not the place to III engage in extended debate about the cause of America's economic difficulties. But the notion that we have Can America support its unipolar status? Yes. But will ourselves into penury abroad is simply not sustainable. Amer- spent Americans support such unipolar status? That is a more ica's low savings rate, poor educational system, stagnant problematic question. For a small but growing chorus of ductivity, declining work habits, rising demand for welfare- pro- Americans this vision of a unipolar world led by a dynamic state entitlements and new taste for ecological luxuries have America is a nightmare. Hence the second major element of nothing at all to do with engagement in Europe, Central the post-Cold War reality: the revival of American isolation- America or the Middle East. Over the last thirty years, while ism. taxes remained almost fixed (rising from 18.3 percent to 19.6 I have great respect for American isolationism. First, be- percent) and defense spending declined, domestic entitle- cause of its popular appeal and, second, because of its natural ments nearly doubled. What created an economy of debt appeal. On the face of it, isolationism seems the logical, unrivaled in American history is not foreign adventures but God-given foreign policy for the United States. It is not just geography that inclines us to it-we are an island continent 28 FOREIGN AFFAIRS THE UNIPOLAR MOMENT 29 protected by two vast oceans, bordered by two neighbors that Many of realism's practitioners were heroic in the heroic could hardly be friendlier-but history. America was founded on the idea of cleansing itself of the intrigues and irrationali- struggles against fascism and communism. Now, however, ties, the dynastic squabbles and religious wars, of the Old some argue that the time for heroism is passed. For example, World. One must have respect for a strain of American Jeane J. Kirkpatrick wrote, to be sure before. the gulf crisis, thinking so powerful that four months before Pearl Harbor that "It is time to give up the dubious benefits of superpower the vote to extend draft enlistments passed the House of status," time to give up the "unusual burdens" of the past and Representatives by a single vote. "return to 'normal' times." That means taking "care of press- Isolationists say rather unobjectionably that America should ing problems of education, family, industry and technology" at confine its attentions in the world to defending vital national home. That means that we should not try to be the balancer of interests. But the more extreme isolationists define vital na- power in Europe or in Asia, nor try to shape the political tional interests to mean the physical security of the United evolution of the Soviet Union. We should aspire instead to be States, and the more elusive isolationists take care never to "a normal country in a normal time."¹ define them at all. This is a rather compelling vision of American purpose. But Isolationists will, of course, say that this is unfair, that they I am not sure there is such a thing as normal times. If a normal do believe in defending vital national interests beyond the time is a time when there is no evil world empire on the loose, physical security of the United States. We have a test case. when the world is in ideological repose, then even such a time Iraq's invasion of Kuwait and hegemonic designs on Arabia is not necessarily peacetime. Saddam has made this point posed as clear a threat to American interests as one can rather emphatically. If a normal time is a time when the world imagine-a threat to America's oil-based economy, to its close sorts itself out on its own, leaving America relatively allies in the region, and ultimately to American security itself. unmolested-say, for America, the nineteenth century-then The rise of a hostile power, fueled by endless oil income, I would suggest that there are no normal times. The world building weapons of mass destruction and the means to deliver does not sort itself out on its own. In the nineteenth century, them regionally and eventually intercontinentally (Saddam has for example, international stability was not achieved on its own already tested a three-stage rocket) can hardly be a matter of but, in large part, as the product of Britain's unrelenting indifference to the United States. exertions on behalf of the balance of power. America tended If under these conditions a cadre of influential liberals and her vineyards, but only behind two great ocean walls patrolled conservatives finds that upon reflection (and in contradiction by the British navy. Alas, the British navy is gone. to the doctrine enunciated by the most dovish president of the International stability is never a given. It is never the norm. postwar era, Jimmy Carter) the Persian Gulf is not, after all, a When achieved, it is the product of self-conscious action by the vital American interest, then it is hard to see what "vital great powers, and most particularly of the greatest power, interest" can mean. If the Persian Gulf is not a vital interest, which now and for the foreseeable future is the United States. then nothing is. All that is left is preventing an invasion of the If America wants stability, it will have to create it. Communism Florida Keys. And for that you need a Coast Guard-you do is indeed finished, the last of the messianic creeds that have not need a Pentagon and you certainly do not need a State haunted this century is quite dead. But there will constantly be Department. new threats disturbing our peace. Isolationism is the most extreme expression of the American desire to return to tend its vineyards. But that desire finds IV expression in another far more sophisticated and serious What threats? Everyone recognizes one great change in the foreign policy school: not isolationism but realism, the school international environment, the collapse of communism. If that that insists that American foreign policy be guided solely by were the only change, then this might be a normal time and interests and that generally defines these interests in a narrow and national manner. I "A Normal Country in a Normal Time," National Interest, Fall 1990, pp. 40-44. 30 FOREIGN AFFAIRS the unipolar vision I have outlined would seem at once unnecessary and dangerous. But there is another great change in international relations. And here we come to the third and most crucial new element in the post-Cold War world: the emergence of a new strategic environment marked by the proliferation of weapons of mass destruction. It is a certainty that in the near future there will be a dramatic increase in the number of states armed with biological, chemical and nuclear weapons and the means to deliver them anywhere on earth. "By the year 2000," estimates Defense Secretary Dick Cheney, "more than two dozen devel- oping nations will have ballistic missiles, 15 of those countries will have the scientific skills to make their own, and half of them either have or are near to getting nuclear capability, as well. Thirty countries will have chemical weapons and ten will be able to deploy biological weapons."2 It is of course banal to say that modern technology has shrunk the world. But the obvious corollary, that in a shrunken world the divide between regional superpowers and great powers is radically narrowed, is rarely drawn. Missiles shrink distance Nuclear (or chemical or biological) devices multiply power. Both can be bought at market. Consequently the geopolitical map is irrevocably altered. Fifty years ago, Germany-centrally located, highly industrial and heavily populated-could pose a threat to world security and to the other great powers. It was inconceivable that a relatively small Middle Eastern state with an almost entirely imported indus- trial base could do anything more than threaten its neighbors. The central truth of the coming era is that this is no longer the case: relatively small, peripheral and backward states will be able to emerge rapidly as threats not only to regional, but to world, security. Iraq, which (unless disarmed by Desert Storm) will likely be in possession of intercontinental missiles within the decade, is the prototype of this new strategic threat, what might be called the "Weapon State." The Weapon State is an unusual interna- tional creature marked by several characteristics: -It is not much of a nation state. Iraq, for example, is a state of recent vintage with arbitrary borders whose ruling party explicitly denies that Iraq is a nation. (It refers to 2 Address to the Conservative Leadership Conference, Washington, D.C., Nov. 9, 1990. THE UNIPOLAR MOMENT 31 Iraq and Syria as regions, part of the larger Arab nation Vanguard Municipal Bond Fund for which it reserves the term.) -In the Weapon State, the state apparatus is extraordinar- SEVEN WAYS TO FIGHT BACK ily well developed and completely dominates civil society. The factor that permits most Weapon States to sustain AGAINST TAXES such a structure is oil. Normally a state needs some kind of tacit social contract with the civil society because ultimately the state must rely on society to support it with taxes. The W hen Federal taxes make inroads on principal and interest, however, princi- oil states are in an anomalous position: they do not need a your income, municipal bond funds can be your first line of defense. The pal remains subject to price fluctuations. social contract because national wealth comes from oil and income from these bonds is 100% free High-Yield Portfolio invests primarily in oil is wholly controlled by the state. 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They are therefore subversive of the interna- has an average weighted maturity of less virtually the lowest operating costs in tional status quo, which they see as a residue of colonial- than 120 days. Principal risk is minimal. the industry: 0.25 of 1%**, with no com- ism. These resentments fuel an obsessive drive to high- missions, no fees-a pure no-load fund. Short-Term Portfollo invests in high- And all other things being equal, lower tech military development as the only way to leapfrog quality municipal bonds and has an costs result in higher yields. Plus you'll history and to place themselves on a footing from which to average weighted maturity of less than enjoy other advantages, including: challenge a Western-imposed order. 2 years. Price fluctuations and principal Free checkwriting for $250 or more. The Weapon State need not be an oil state. North Korea, risk should be low. 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The post-Cold War era is thus perhaps better called the era age weighted maturity of 15 to 25 years. **Lipper Directors' Analytical Data. of weapons of mass destruction. The proliferation of weapons The bonds are covered by insurance, of mass destruction and their means of delivery will constitute guaranteeing the timely payment of THEVanguardcroup OF INVESTMENT COMPANIES 32 FOREIGN AFFAIRS THE UNIPOLAR MOMENT 33 the greatest single threat to world security for the rest of our century are as invisible today as was, say, Nazism in 1920. They lives. That is what makes a new international order not an will make themselves known soon enough. Only a hopeless imperial dream or a Wilsonian fantasy but a matter of the sheerest prudence. It is slowly dawning on the West that there utopian can believe otherwise. We are in for abnormal times. Our best hope for safety in is a need to establish some new regime to police these weapons such times, as in difficult times past, is in American strength and those who brandish them. and will-the strength and will to lead a unipolar world, In parliamentary debate on the gulf crisis even British unashamedly laying down the rules of world order and being Labour Party leader Neil Kinnock has emphasized that it is not prepared to enforce them. Compared to the task of defeating enough to get Iraq out of Kuwait. Iraq's chemical stocks, he fascism and communism, averting chaos is a rather subtle call said, must be destroyed and its nuclear program internation- ally controlled. When the Labour Party, hardly a home for to greatness. It is not a task we are any more eager to undertake than the great twilight struggle just concluded. But new Western consensus. hawks, speaks thus, we have the makings, the beginnings, of a it is just as noble and just as necessary. solution will have to include three elements: denying, disarm- To do what exactly? There is no definitive answer, but any ing, and defending. First, we will have to develop a new regime, similar to COCOM (Coordinating Committee on Export Controls) to deny yet more high technology to such states. Second, those states that acquire such weapons anyway will have to submit to strict outside control or risk being physically disarmed. A final element must be the development of antibal- listic missile and air defense systems to defend against those weapons that do escape Western control or preemption. There might be better tactics, but the overall strategy is clear. With the rise of the Weapon State, there is no alternative to confronting, deterring and, if necessary, disarming states that brandish and use weapons of mass destruction. And there allies as will join the endeavor. is no one to do that but the United States, backed by as many The alternative to such robust and difficult intervention- ism-the alternative to unipolarity-is not a stable, static multipolar world. It is not an eighteenth-century world in which mature powers like Europe, Russia, China, America, and Japan jockey for position in the game of nations. The alternative to unipolarity is chaos. I do not mean to imply that weapons of mass destruction are the only threat facing the post-Cold War world. They are only the most obvious. Other threats exist, but they are more speculative and can be seen today only in outline: the rise, for example, of intolerant aggressive nationalism in a disintegrat- ing communist bloc (in one extreme formulation, the emer- gence of a reduced but resurgent, xenophobic and resentful "Weimar" Russia). And some threats to the peace of the 21st