Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Scholar Source Context
Document identity
localId
415892732
label
[Statements of Administration Policy, 4/16/90-9/28/90]
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
415892732
contentType
document
title
[Statements of Administration Policy, 4/16/90-9/28/90]
citationUrl
identifierLocal
13900-001
collections
Records of the White House Office of Speechwriting (George H. W. Bush Administration)
Tony Snow Subject Files
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
415892732
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
67a4af2707d0ea2a
ocrText
Originally Processed With FOIA(s):
foia Number:
S
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection:
George H.W. Bush Presidential Records
Collection/Office of Origin:
Speechwriting, White House Office of
Series:
Snow, Tony, Files
Subseries:
Subject File, 1988-1993
OA/ID Number:
13900
Folder ID Number:
13900-001
Folder Title:
[Statements of Administration Policy, 4/16/90-9/28/90]
Stack:
Row:
Section:
Shelf:
Position:
G
18
29
3
1
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
April 16, 1990
FACT SHEET
The President announced today his Policy on Offsets in Military
Exports. This responds to the requirement under the FY 1989
National Defense Authorization Act, Section 825, 10 U.S.C.
Sec. 2505.
Offsets have become a common feature in the international arms
trade. In the most general sense, offsets are industrial and
commercial compensation practices offered or demanded in
connection with the purchase of defense goods and services.
While offsets also occur in civil trade, and include business
practices as old as barter itself, the scope and variety of
offsets associated with military exports have become the focus of
increasing public attention.
Some forms of offsets have become basic components of achieving
defense sales and of furthering national policy goals of the U.S.
and foreign governments. The objectives of a government making a
foreign arms purchase often go beyond procuring arms at cost-
effective prices, and include considerations of the political
acceptability of a foreign source, the maintenance and
development of domestic defense and non-defense industries,
obtaining advanced military and commercial technology, increasing
employment, and other economic goals such as conserving foreign
exchange.
In this context, a U.S. seller of defense goods and services is
often faced with difficult choices:
--
The seller can elect not to offer offsets, which could
result in the loss of sales because of the existence of
competition willing to offer offsets;
The seller can elect to offer offsets and hope to
minimize their costs during implementation;
--
The seller may face foreign government demands that
obligate the seller to provide offsets as a non-
negotiable condition of sales.
Because some offsets can alter the nature of defense sales
transactions by including terms unrelated to price and
performance of the product or service, offsets can introduce
market rigidities and increased costs to the purchaser. In these
circumstances, the result not only distorts trade and reduces
economic efficiency, but it diminishes the purchasing power of
scarce defense resources.
- more -
2
The President's policy, announced today, clarifies the role of
the U.S. Government in offset arrangements. It commits the
government not to encourage or commit to offsets and constrains
the use of U.S. Government funds in offset arrangements.
However, recognizing the commercial reality of these arrangements
in the free marketplace, the President's policy does not limit
the negotiating and implementing rights of U.S. industry in
establishing offset arrangements with foreign buyers of U.S.
goods and services.
The offset policy was developed through interagency consensus on
this subject. Participating agencies included the State,
Treasury, Defense, Commerce and Labor Departments, the Arms
Control and Disarmament Agency, the Federal Emergency Management
Agency, as well as four elements of the Executive Office of the
President (the United States Trade Representative, the Council of
Economic Advisors, the Office of Management and Budget and the
National Security Council). The policy also reflects the
majority of the views submitted by the public as a result of a
Department of Commerce Federal Register notice inviting public
comment on this issue.
# # #
Cluirs
PRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE
UNITED
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON. D.C. 20503
April 16, 1990
(Senate)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
S. 543 - Job Training and Basic Skills Act of 1989
(Simon (D) IL)
The Administration supports legislation to make the successful
Job Training Partnership Act (JTPA) a more effective employment
and training program. S. 543, as reported by the Senate Labor
and Human Resources Committee, incorporates the principles
contained in S. 1300, the Administration's proposal. It
represents an important step forward in advancing the
employability of economically disadvantaged youth and adults.
Although the Administration has a number of concerns with S. 543,
the bill would move toward achieving the bipartisan objective of
improving the program and making it more responsive to the labor
market of the 1990s. Therefore, the Administration supports
Senate passage of S. 543 but will work to have its concerns,
including those noted below, addressed in the final version of
the legislation.
Some of the Administration's concerns with S. 543 are:
-- the authorization levels of about $2.8 billion for FY 1990
for adult and youth training programs, more than
$350 million over the FY 1990 appropriation, should be
revised to direct any increases to youth programs,
consistent with the realignment of resources included in the
Administration's FY 1991 Budget request;
-- requiring that not less than 70 percent of adult
participants meet at least one specified barrier to
employment in addition to being economically disadvantaged
is unduly restrictive and should be reduced to 50 percent;
-- providing that no State could receive less than its present
allotment of funds for three years would delay the
effectiveness of the new funding formula, which is intended
to allot more funds to States with the greatest
concentration of the economically disadvantaged;
-- deleting the provision in JTPA making operation of the Jobs
for Employable Dependent Individuals (JEDI) program
contingent on an increase greater than inflation in the
appropriation for the title II-A employment and training
program; and
2
-- the new categorical program for displaced homemakers is
objectionable because this group would be better served
under the revised adult program and creation of the program
would lead to other groups asking for similar set asides;
the new grant program to replicate successful training
models is unnecessary.
China
PRESIDENT UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON. D.C. 20503
April 17, 1990
(Senate)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 1594 - An Act to Make Miscellaneous and Technical
Changes to Various Trade Laws
(Gibbons (D) Florida and two others)
The Administration supports Senate passage of H.R. 1594, as
reported by the Senate Finance Committee, but will seek changes
to the bill during its further consideration by Congress.
Specifically, the Administration will seek to:
-- Amend the Customs user fee provisions to: (1) apply the $3
surcharge to all entries processed manually; (2) provide
merchandise processing fee exemptions only to free-trade
areas; (3) permit the use of the passenger/conveyance fees
to cover only certain costs; (4) require that all customs
user fees be available to the extent provided in advance in
appropriations acts; and (5) restore the provision
restricting consolidation of merchandise entries.
-- Conform the authorization levels, for the U.S. Trade
Representative and the Customs Service, to those requested
in the President's Fiscal Year 1991 Budget.
-- Delete several miscellaneous tariff provisions relating to
(1) tobacco, which would provide a retroactive windfall to
U.S. importers; (2) refunds for crude petroleum or petroleum
derivatives, which would authorize retroactive payment of
such refunds and make other changes that would increase the
likelihood of fraudulent and unverifiable claims; and
(3) reliquidation of certain entries and refund of
antidumping duties, which would undermine the antidumping
laws.
-- Delete the prohibition on imports of certain Burmese
articles because the use of trade policy is an inappropriate
instrument for dealing with human rights concerns.
In addition, the Administration may seek other changes to the
miscellaneous tariff suspension provisions based on a further
review of the effect of these duty suspensions.
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
April 18, 1990
FACT SHEET
UNITED STATES INITIATIVES AFFECTING GLOBAL CLIMATE CHANGE
During his first year in office, the President has advanced a
large number of initiatives to enhance the quality of the
environment. Several of these initiatives, when fully
implemented, will result in substantial reductions in future
greenhouse gas emissions in the United States -- at least 15
percent by 2000, and even more in later years. The measures are
outlined below.
Full Phase-Out of Chlorofluorocarbons (CFCs)
The President has committed the United States to seeking an
international agreement for a worldwide phaseout of the
production and use of CFCs by the year 2000. As a further step,
the President signed into law a unilateral U.S. fee on production
of CFCs. This will reduce U.S. emissions of CFCs below levels
allowed by international protocols.
Clean Air Act
The President's proposed revisions to the Clean Air Act call for
two steps which will substantially reduce carbon dioxide
emissions:
O
A 10 million ton reduction of sulfur dioxide emissions
from 1980 levels; and
A cap on emissions at this sharply reduced level in
perpetuity.
These measures in combination create a powerful incentive for
energy conservation in the electric utility sector. The
President's proposal on clean air would also increase the use of
alternative fuels and includes measures to reduce carbon
monoxide, nitrogen oxides, and volatile organic compounds. Both
of these initiatives will result in substantial reductions of
greenhouse gas emissions.
- more -
2
Reforestation
The President's fiscal year 1991 budget contains $175 million to
fund the first year of a multi-year program to plant one billion
trees annually for the next ten years. This program has the
potential, if continued for 20 years, to sequester up to 5
percent of annual U.S. carbon dioxide emissions.
Increased Funding for Solar and Renewable Energy and for Energy
Conservation
The President's fiscal year 1991 budget contains about $360
million for research and development activities in solar and
renewable energy and energy conservation. This represents a 75
percent increase over the amount requested in the previous year,
and an increase of about 10 percent above fiscal year 1990
enacted levels. This research will be critical to identifying
technologies which will allow us to meet our energy needs in
environmentally efficient ways.
Energy Saving Appliance Standards
The Department of Energy recently issued new appliance standards
which will result in increased energy conservation and reduced
energy demand to service affected products. These standards are
projected to reduce U.S. carbon dioxide emissions by up to one
percent by the year 2000.
Commitment to Increased Research
In addition to these measures which will reduce greenhouse gas
emissions, the President remains committed to a major research
effort. The President's FY 1991 budget proposes spending over
one billion dollars on global change research. This research is
targeted towards investigating the underlying causes, effects,
and consequences of global change. This funding is in addition
to the $660 million already allocated for such research in FY
1990.
# # #
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
April 18, 1990
FACT SHEET
UNITED STATES INITIATIVES AFFECTING GLOBAL CLIMATE CHANGE
During his first year in office, the President has advanced a
large number of initiatives to enhance the quality of the
environment. Several of these initiatives, when fully
implemented, will result in substantial reductions in future
greenhouse gas emissions in the United States -- at least 15
percent by. 2000, and even more in later years. The measures are
outlined below.
Full Phase-Out of Chlorofluorocarbons (CFCs)
The President has committed the United States to seeking an
international agreement for a worldwide phaseout of the
production and use of CFCs by the year 2000. As a further step,
the President signed into law a unilateral U.S. fee on production
of CFCs. This will reduce U.S. emissions of CFCs below levels
allowed by international protocols.
Clean Air Act
The President's proposed revisions to the Clean Air Act call for
two steps which will substantially reduce carbon dioxide
emissions:
o
A 10 million ton reduction of sulfur dioxide emissions
from 1980 levels; and
o
A cap on emissions at this sharply reduced level in
perpetuity.
These measures in combination create a powerful incentive for
energy conservation in the electric utility sector. The
President's proposal on clean air would also increase the use of
alternative fuels and includes measures to reduce carbon
monoxide, nitrogen oxides, and volatile organic compounds. Both
of these initiatives will result in substantial reductions of
greenhouse gas emissions.
- more -
2
Reforestation
The President's fiscal year 1991 budget contains $175 million to
fund the first year of a multi-year program to plant one billion
trees annually for the next ten years. This program has the
potential, if continued for 20 years, to sequester up to 5
percent of annual U.S. carbon dioxide emissions.
Increased Funding for Solar and Renewable Energy and for Energy
Conservation
The President's fiscal year 1991 budget contains about $360
million for research and development activities in solar and
renewable energy and energy conservation. This represents a 75
percent increase over the amount requested in the previous year,
and an increase of about 10 percent above fiscal year 1990
enacted levels. This research will be critical to identifying
technologies which will allow us to meet our energy needs in
environmentally efficient ways.
Energy Saving Appliance Standards
The Department of Energy recently issued new appliance standards
which will result in increased energy conservation and reduced
energy demand to service affected products. These standards are
projected to reduce U.S. carbon dioxide emissions by up to one
percent by the year 2000.
Commitment to Increased Research
In addition to these measures which will reduce greenhouse gas
emissions, the President remains committed to a major research
effort. The President's FY 1991 budget proposes spending over
one billion dollars on global change research. This research is
targeted towards investigating the underlying causes, effects,
and consequences of global change. This funding is in addition
to the $660 million already allocated for such research in FY
1990.
# # #
Cluis
LORE OF PRESIDENT STATE UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
April 19, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.J.Res.
- Technical Corrections in the Ethics
Reform Act of 1989
(
)
The Administration supports enactment of H.J.Res.
.
********
OF UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
April 19, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 3545 - Extending the Term of the Chesapeake and Ohio
Canal National Historical Park Commission
(Byron (D) MD and 8 others)
The Administration supports enactment of H.R. 3545.
*****
EXECUTIVE OFFICE OF THE PRESIDENT
THRO UNITED and
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
April 19, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 2514 - Thrift Savings Plan Technical Amendments Act of 1990
(Rep. Ackerman (D) NY and two others)
The Administration has no objection to enactment of H.R. 2514.
********
EXECUTIVE OFFICE OF THE PRESIDENT
STATE REJUND OFFICE OF
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
April 20, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 3848 - Depository Institution Money Laundering
Amendments of 1990
(Annunzio (D) Illinois and 33 others)
The Administration supports enactment of H.R. 3848, as reported
by the House Committee on Banking, Finance, and Urban Affairs.
*****
COFFEE WIN PRESIDENT MASSACHUSETTS a UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
Chris
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
April 23, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 3811 Parks Centennial Act
(Pashayan (R) CA and 4 others)
The Administration supports House passage of H.R. 3811, which
provides for celebrating the centennials of National Park System
units. The Administration will, however, seek amendments in the
Senate to:
-- Clarify that the roles of the centennial commissions
are purely advisory. This clarification would ensure
that section 2 (b) does not violate the Appointments
Clause of the Constitution.
-- Amend section 7 to authorize, instead of require, the
President to issue commemorative proclamations.
-- Eliminate the earmarking and automatic appropriation
of excess receipts from the sale of the centennial
histories of park units (section 6).
-- Modify section 5 to authorize, rather than require,
the Secretary of the Interior to contract for the
preparation of centennial histories. It is not clear
that each of the 355 units of the National Park
System will warrant the preparation of such a
history.
*****
Clurs
OFFECE wish PRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
April 23, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 4380 - Superconducting Super Collider Project
Authorization Act of 1990
(Roe (D) New Jersey)
The Administration supports H.R. 4380, the authorization of the
Superconducting Super Collider Project, and is committed to its
construction. The Superconducting Super Collider is a major
component of the Administration's initiative to strengthen
America's position in science and technology. There are, however,
several changes that are recommended to bring the legislation
more fully into conformity with Administration policy.
Specifically, the Administration supports changes that would:
-- Require the successful completion of a magnet assembly
test, involving 10 prototype magnets assembled by
industry before allowing funds to be spent on tunnel
construction. Premature tunnel construction could
result in unnecessary costs and project delays.
-- Make it clear that while the United States is desirous
of receiving foreign assistance for the construction of
the SSC, and is concerned that American industry
receive the technological advantages that may accrue
during construction, the bill should not include
language (i.e. Section 9) that is contrary to current
U.S. policy and law that seeks to achieve
non-discriminatory trade and investment.
-- Delete the provision providing the State of Texas with
a refund of its contribution if the project is
terminated. This provision would establish an adverse
precedent for other Federal projects.
The Administration supports H.R. 4380 and the modifications
outlined above.
*****
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
April 25, 1990
FACT SHEET
The President today announced a three-part budget reform
package that: 1) proposes an amendment to the Constitution to
provide a line-item veto; 2) reiterates the President's previous
support for the Legislative Line-Item Veto Act of 1989 (S. 1553)
to enhance Presidential rescission authority; and 3) endorses a
balanced budget amendment to the Constitution.
LINE-ITEM VETO AMENDMENT:
O
Today the President transmitted to the Congress a proposed
constitutional amendment to create a line-item veto
applicable to bills containing spending authority.
O
The Governors of 43 of the 50 States possess line-item veto
authority, which has been requested by seven previous
Presidents, beginning more than a century ago.
O
The amendment would give the President authority to
separately approve, reduce, or disapprove any provision of a
bill containing any "item of spending authority."
O
"Items of spending authority" have been broadly defined, to
capture the whole range of Federal spending.
--
They include: items of appropriation, spending
authorizations, authority to borrow money on the credit
of the United States or otherwise, dedications of
revenues, entitlements, uses of assets, insurance,
guarantees of borrowing, and any authority to incur
obligations.
(more)
2
o
The basic veto mechanism currently in the Constitution has
been retained in the amendment.
--
When the President exercises the item veto, he will
signify in writing the portions approved or approved as
reduced, which will then become law, and return
disapproved portions and reductions to Congress, which
will reconsider each of them just as it now does with
vetoed bills.
THE LEGISLATIVE LINE-ITEM VETO ACT OF 1989:
O
The President today reiterated his support for the
Legislative Line-Item Veto Act of 1989 (S. 1553), which
would enable the President to rescind wasteful and
unnecessary appropriations. This legislation will provide
needed reforms in the budget procedure known as rescission.
The President previously endorsed the legislation when it
was introduced on August 4, 1989.
Present law allows for cancellation of an appropriation only
through the rescission process. Congress, however, can
thwart a Presidential proposal for rescission simply by
inaction. In fact, the vast majority of rescission
proposals submitted since passage of the present law in 1974
were never acted upon.
The Legislative Line-Item Veto Act would reform the
rescission process by requiring that Congress take
affirmative action to disapprove any rescission.
O
The legislation would provide two periods during which the
President could propose rescissions. First, after the
signing of individual appropriations bills, the President
would have 20 days to propose rescissions. The rescissions
would go into effect after a specified period -- up to 35
days in length -- unless a bill disapproving the rescissions
is enacted.
O
Second, the President could also forward rescissions at the
time of his budget submission to Congress each fiscal year.
Again, the rescissions would go into effect unless a law is
enacted disapproving the rescissions. The legislation also
provides expedited Congressional procedures to speed
consideration of the President's rescission proposals.
(more)
3
BALANCED BUDGET AMENDMENT:
O
The President also called today for a balanced budget
amendment to the Constitution, and endorsed Senate Joint
Resolution 12, a balanced budget amendment introduced by
Senator Thurmond.
O
The proposed amendment would require that outlays not exceed
receipts, thus allowing the budget to be balanced or to run
a surplus. The proposal also includes a safeguard against a
resort to higher taxes as a means of complying with the
constitutional mandate.
O
The President called for a change in Senate Joint Resolution
12: that the mandate for a balanced budget be effective
beginning with fiscal year 1993 -- the year in which the
Gramm-Rudman-Hollings law requires elimination of the
deficit.
0
More than 30 State legislatures have already called for a
constitutional convention for the purpose of adopting a
balanced budget amendment.
# # #
FRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE
UNITED
OFFICE OF MANAGEMENT AND BUDGET
PROVIDE
CRAVIS
WASHINGTON, D.C. 20503
O
April 25, 1990
(Senate Floor)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 4404 -- DIRE EMERGENCY SUPPLEMENTAL APPROPRIATIONS
(Whitten (D) Mississippi)
(Byrd (D) West Virginia)
The Administration urges expeditious Senate action on H.R.
4404 so that Congress can present the President with an
acceptable bill promptly. Although the Administration has many
concerns with the Senate Committee-reported bill, the foreign
assistance provisions of the Senate bill go a long way toward
meeting the President's request. The Administration's concerns
are noted below.
Abortion Language
The Senate Appropriations Committee has used H.R. 4404 as a
means to modify the abortion provisions in the FY 1990 District
of Columbia Appropriations Act. The President vetoed H.R. 3610,
the second D.C. appropriations bill, because of language
identical to that contained in the Senate Committee-reported
bill. The Administration strongly believes that "dire emergency"
appropriations legislation should not be used to reconsider non-
emergency issues that were resolved in the regular appropriations
process. If Congress presents the President with a bill that
contains the abortion language that was approved by the Senate
Appropriations Committee in H.R. 4404, his senior advisors will
recommend that he veto the bill, and it is virtually certain that
he would do SO. It would be highly regrettable if good work on
this dire emergency supplemental were threatened by another
struggle over this highly contentious issue.
Panama-Nicaraqua and Other Foreign Assistance
The Senate Committee-reported bill fully funds the request
for assistance to Nicaragua. However, the bill reduces the $500
million requested for Panama to $420 million. The Senate
reallocates $75 million of the $80 million reduction from Panama
for assistance to Namibia ($10 million), for assistance to the
Caribbean ($15 million), for a development fund for Africa ($20
million), and for funding for refugees ($30 million) in addition
to the $70 million requested. The bill fully offsets this
funding by savings from the Department of Defense. While the
foreign aid provisions in the Committee bill are not in full
agreement with the President's proposals, the Administration
finds these provisions acceptable.
The Senate Committee bill makes modifications to the
provisions contained in the House version regarding housing
guarantees to Israel. These modifications would appear to limit
seriously U.S. flexibility in discussions with Israel over use of
these funds. The Administration will work in Conference to
assure that adequate flexibility is available.
The Senate Committee has added to the bill a provision
making $10 million available for expenses related to "the
establishment of an American embassy in the independent Republic
of Lithuania." The Administration's position continues to be
that the United States does not recognize the forcible
incorporation of the Baltic States into the Soviet Union.
Nevertheless, at this juncture, the Administration finds this
provision unhelpful and unnecessary. The Administration also
opposes a provision that makes mandatory the interest
equalization program of the Export-Import Bank.
DoD Provisions
The Administration is fully committed to ensuring that the
members of the Armed Forces receive the pay and benefits to which
they are entitled by law, notwithstanding the failure of Congress
to provide sufficient appropriations for that purpose for FY
1990. The Administration identified to Congress in January 1990
sources of previously-appropriated Defense appropriations that
would correct this military personnel funding shortfall in a
manner consistent with an effective overall defense program. The
Administration strongly opposes the provision to cut Defense
appropriations accounts across-the-board to cure the shortfall.
The Senate Appropriations Committee's proposal would
unnecessarily create disruption in virtually all on-going Defense
programs and operations.
The Administration supports repeal of the proviso in the
RDT&E, Air Force chapter of the FY 1990 DoD Appropriations Act
(P.L. 101-165) that would require obligation of $50 million for
cruise missile testing on the B-1B bomber. The House-passed bill
repeals the proviso, but the Senate Committee bill does not.
Repeal of the proviso is essential to avoid needlessly
complicating the resolution of cruise missile issues in strategic
arms negotiations. Moreover, an effective stand-off weapons
capability for manned, penetrating bombers does not require such
testing at this time.
A Committee amendment appears to impact a classified program
which is not addressed in the report. Absent receiving an
explanation of the proposed action, the Administration cannot
comment on this amendment.
2
Section 614
The Administration supports the Hollings amendment to repeal
Section 614 of the Commerce, Justice, State Appropriations Act
for FY 1990.
Domestic Discretionary Additions
The Senate Committee-reported bill contains several
unrequested provisions that increase domestic discretionary
spending. The Administration is concerned that some of the
additional domestic discretionary spending is neither necessary
nor a response to a dire emergency.
The Administration is particularly concerned about
provisions to provide advanced funding to fight fires that may
never occur. These can hardly be deemed a "dire emergency" at
this point. The Administration believes that funding for
firefighting above the $77 million mandated in the bill for
Department of the Interior reimbursement should either be dropped
or offset. However, since the Budget Committees classify all FY
1990 firefighting appropriations as mandatory, the Administration
can understand Congress' decision not to offset these funds. In
lieu of offsets, the Administration supports a provision that
limits the availability of all firefighting funds to FY 1990
only. This provision should ensure that any funds not spent on
emergency fire suppression activities in FY 1990 would not be
available to fund discretionary programs in FY 1991.
Mandatory Program Increases
The Senate Committee-reported bill would provide increases
for several mandatory programs, including $705 million for Food
Stamps and $435 million for veterans' programs. These
appropriations have recently been estimated to be necessary and,
because they are mandatory, do not require offsets from savings
in other areas.
3
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
April 25, 1990
Presidential Determination
No.
April 25, 1990
MEMORANDUM FOR THE SECRETARY OF STATE
SUBJECT:
Determination to Authorize Assistance for
Nicaragua
By virtue of the authority vested in me by section 451 of the
Foreign Assistance Act of 1961, as amended, I hereby authorize
the use of up to $2.5 million in funds made available under
Chapter 4 of Part II of the act in fiscal year 1990 for
emergency assistance to Nicaragua, notwithstanding any other
provision of law.
You are requested to report this determination to the Speaker
of the House of Representatives, the House Appropriations
Committee, and the Senate Committees on Foreign Relations and
Appropriations immediately.
You are authorized and directed to publish this determination in
the Federal Register.
GEORGE BUSH
# # #
OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Washington, D.C.
April 27, 1990
FACT SHEET
TRADE LIBERALIZATION PRIORITIES
Top Priority
U.S. Trade Representative Carla A. Hills announced today
that the successful completion of the Uruguay Round of
multilateral trade negotiations is the Administration's top trade
liberalization priority, in accordance with section 310 of the
1974 Trade Act, as amended, known as "Super 301." This provision
calls for the identification of U.S. trade liberalization
priorities by April 30 of this year.
Reforming the global trading system is crucial to the future
prosperity of the United States and other trading nations. With
the conclusion of the Uruguay Round less than seven months away,
the Administration has determined that attaining ambitious
results in these negotiations -- meaning a significant reduction
of trade barriers world-wide and the development of clear and
enforceable rules of international trade -- is the most effective
way to significantly increase U.S. exports, to safeguard
America's economic future, and to ensure the viability of the
international trading system into the next century.
In this final year of the Uruguay Round, a more ambitious,
far-reaching reform of the global trading system is the
Administration's highest trade liberalization priority, and the
most effective means of expanding U.S. exports.
An Ongoing Process
Trade liberalization is an ongoing process that requires
negotiations in a variety of fora, and use of a variety of tools.
As part of the Super 301 process, the Office of the U.S. Trade
Representative prepared the National Trade Estimate (NTE) Report,
which contains an inventory of trade barriers affecting goods,
services, investment and intellectual property protection in 35
countries and two regional trading blocs. Many of the barriers
described in the NTE report have been -- and continue to be --
addressed constructively through multilateral and bilateral
negotiations.
2
An Important Market: Japan
The Administration recognizes that the smooth operation and
continued growth of the world trading system require that the
world's second largest industrial economy, Japan, operate on a
basis that is open and truly competitive. Thus, the opening of
the Japanese market remains a key trade priority of the
Administration.
In the past year the Administration has used the leverage
afforded by section 301 and other provisions of the 1988 Omnibus
Trade Act to advance its market opening efforts in Japan.
Specifically:
Super 301 Results. The Administration has successfully
concluded agreements in all three important areas identified
as 1989 Super 301 priorities:
-- Supercomputer Understanding. On March 22, 1990, the
United States and Japan concluded an ad referendum
agreement on supercomputers, under which Japan agreed
to seek adequate funding for supercomputer purchases,
use practical benchmarks to select among machines, and
provide an effective procedure for handling complaint
-- Satellite Understanding. on April 3, 1990, Japan
agreed to a new policy that opens government
procurement of all satellites except for genuine R&D
satellites. Its commitments will work to create new
opportunities for U.S. commercial satellite producers.
-- Forest Products Agreement. Just this week, Japan
agreed to improve market access for U.S. exports of
wood products exports to Japan. This will provide
major benefits to U.S. exporters by addressing the
following areas of concern: tariff misclassification,
product certification, product standards, building
codes, and tariffs.
Amorphous metals. The Administration has obtained a
commitment from the Government of Japan to expedite talks on
market access in Japan for amorphous metals, a paradigm of
high technology market access in Japan, which was the
subject of a section 301 petition filed by an American firm.
Rather than initiate a one-year section 301 investigation,
the Administration used the leverage of section 301 to
obtain Japan's commitment to seek solutions to this issue
within 150 days, with the understanding that an industry-
filed 301 petition will be accepted if solutions are not
reached.
3
Sound recordings. Just this week Japan has committed to
improve the protection of foreign sound recordings by
protecting foreign sound recordings produced after 1968, by
providing "national treatment" for rentals, and by extending
the term of protection for sound recordings to 50 years.
Telecommunications on March 30, 1990, Japan committed to
liberalize the network channelling terminating equipment
(NCTE) and international walue-added network service (IVAN)
portions of its telecommunications market. Negotiations
will occur over the next four months on the implementation
of these commitments.
In October 1989, Japan agreed to renew the NTT agreement,
which provides for open and transparent procurement
procedures for Japan's recently privatized major
telecommunications company. The new agreement took effect
January 1, 1990, and remains in effect for three years.
In June 1989, in response to a U.S. determination under
section 1377 of the Trade Act that the Japanese restrictions
were in violation of a bilateral telecom agreement, Japan
agreed to open its third party radio and cellular telephone
markets to foreign firms.
Steel. In October 1989, the United States and Japan
concluded a bilateral "consensus" agreement committing Japan
to eliminating subsidies and other trade distorting
practices for steel.
Food Additive Labelling. In response to U.S. concerns,
Japan's Ministry of Health and Welfare in November 1989
modified regulations for food additive labelling, so that
synthetic and natural additives are treated in an equivalent
manner. Previous regulations had worked to discriminate
against U.S. suppliers.
Construction. In November 1989, USTR determined that
certain Japanese policies and practices for procuring
construction and related services were unreasonable under
section 301. Japan committed to taking steps to discourage
collusive bidding, increase available information to foreign
bidders, and allow Japanese companies to form joint ventures
with foreign firms. In addition, Japan committed to
negotiate all unresolved matters regarding construction
market access within the context of the May 1990 review of
the Major Projects Arrangement.
Medical/Pharmaceutical Devices. In response to U.S.
concerns, Japan assured the Administration in February 1990
that it will not impose price controls on implantable
4
medical devices without first consulting with the United
States.
Auto Parts. Through the MITI and Department of Commerce-led
MOSS process, in addition to ongoing government-to-
government discussions, the United States and Japan will
hold semiannual conferences to promote growth of strong
business and sales relationships between U.S. auto parts
suppliers and Japanese auto manufacturers. In addition to
high-level government representatives, Japanese and U.S.
industry representatives will be invited to participate.
Issues of interest include increased contact between U.S.
auto parts manufacturers and Japanese auto manufacturers
during the new model design phase, greater access of U.S.
manufacturers to the Japanese distribution system, and
follow-up on other issues of concern.
An initiative was launched in July 1989 to address the
causes of the slow adjustment of the U.S. and Japanese trade
imbalances:
Structural Impediments Initiative (SII). In the SII Interim
Report released on April 5, 1990, Japan committed to
specific steps to eliminate structural barriers to imports,
including: strengthened enforcement of its Anti-monopoly
Act, including stiffer penalties for violators; shortened
approval times under the Large Retail Stores Law, increas
spending on public infrastructure, and improved Japanese
patent examination, among others. The final SII report,
which will elaborate on and expand these and other
commitments, is due in July 1990.
As President Bush has stated, the Administration has made
substantial progress to date in our negotiations with Japan, but
we must continue our efforts to achieve concrete results. The
Administration will work intensively in the coming months to
eliminate remaining trade frictions with Japan. Key areas of
focus will include:
ensuring solid accomplishments and commitments in the SII
Final Report, including a vehicle for follow-up;
implementing the agreements reached in last year's Super 301
cases on satellites, supercomputers and forest products;
successfully concluding the telecommunications negotiations
by July 28, 1990;
resolving the amorphous metals issue by September 15, 1990;
5
IU
ensuring progress in the May 1990 review of the construction
agreement;
expanding market opportunities for foreign semiconductor
suppliers in Japan pursuant to the U.S. -Japan Semiconductor
Agreement; and
making progress on the auto parts issue through the MOSS
process.
Through appropriate use of section 301 leverage, the
Administration has and will continue to achieve substantial
reductions in trade barriers. The flexibility to select the
right tools at the right time is essential for effective
implementation of our trade policy. The President has directed
the USTR to continue her vigorous market-opening initiatives,
using the full range of tools at her disposal -- including both
acceptance of industry-filed section 301 petitions, and self-
initiation of investigations where appropriate. The President
has also directed the USTR to expand her semiannual report to the
Congress on section 301 to review both the status of existing 301
investigations and related initiatives in important markets such
as Japan.
Other Important Markets
In addition to progress made with Japan, the Administration
has brought to a successful conclusion six other section 301
investigations initiated in response to petitions filed by U.S.
industry. Significant trade liberalization commitments have
resulted from this effective use of section 301 leverage in the
following areas:
o
Argentine patent protection for pharmaceuticals: We
satisfactorily concluded an investigation last September
when Argentina agreed to modify its pharmaceutical product
registration procedures, and to address constructively the
issue of patent protection for pharmaceutical products.
Canadian export restrictions on unprocessed fish: We
successfully challenged Canada's export restrictions under
the dispute settlement mechanism of the U.S.-Canada Free-
Trade Agreement, and as a result reached agreement with
Canada under which U.S. fish processing firms will now be
able to buy Canadian fish to process.
EC export restrictions on copper scrap: We reached a
satisfactory resolution of a dispute with the European
Community (EC) brought under the General Agreement on
Tariffs and Trade (GATT), in which the EC agreed to
6
eliminate its export restrictions on copper scrap and waste,
thereby benefitting American copper and brass fabricators.
EC subsidies on oilseeds: We obtained a favorable ruling
from a GATT dispute settlement panel concerning the EC
subsidies regime for oilseeds. In January the EC accepted
the panel's report and committed to take measures by the
1991 marketing year to comply with the panel findings.
Korean import restrictions on beef: We also obtained a GATT
panel report that found Korea's import restrictions on beef
violate the GATT. As a result, we reached agreement with
the Government of Korea on steps it will take to comply with
the panel findings. In a related matter, Korea also agreed
to remove its import restrictions on a number of other
products.
Discriminatory government procurement in Norway: A dispute
settlement proceeding initiated by the United States under
the GATT Procurement Code involving procurement of
electronic toll collection equipment by the Government of
Norway was resolved successfully through cooperative
negotiations this week. Norway has taken actions that
offset the effect of this procurement on the U.S. bidder,
and has agreed to take steps to ensure that future
procurements are carried out in accordance with Code
procedures.
The fact that almost all of these section 301 cases were
successfully resolved through GATT consultations or dispute
settlement proceedings underscores the importance of having an
effective multilateral dispute settlement mechanism to address
all matters affecting international trade. In that regard, the
United States is actively seeking to strengthen the GATT dispute
settlement process in the Uruguay Round.
An Ambitious Agenda
Through a successful completion of the Uruguay Round
negotiations the Administration seeks to open world markets and
significantly expand and strengthen the multilateral trading
system. Over 100 nations are engaged in the negotiations, which
are the most far-reaching and ambitious round of international
trade talks ever held.
A successful conclusion to the Uruguay Round negotiations
has become even more critical in light of recent events in
Eastern Europe and Latin America. A stronger, more open global
trading system will bolster efforts by countries in those regions
7
to reform and open their economies, and ensure the secure
Id/
integration of those regions into a dynamic world economy.
The Administration's top trade liberalization objectives in
the Uruguay Round are:
O
The fundamental reform of world agricultural trade,
including the phase-out of export subsidies, reduction
of barriers to market access, and the phase-out of
domestic support programs which distort agricultural
production;
Extension of international rules of fair play to trade
in services, which accounted for $105 billion in U.S.
exports in 1989;
Development of international rules and standards
protecting intellectual property rights, upon which our
high-tech, publishing and entertainment industries
depend;
Development of international rules on trade-related
investment measures to avoid trade-restrictive and
distorting effects;
The reduction of tariff and non-tariff barriers to
trade in goods, aiming toward the achievement of zero
tariffs in certain key sectors;
Effective limitation of all trade-distorting subsidies;
vsn
O
Ensuring that the developing nations, which account for
a growing proportion of world trade, accept more
responsibility under the multilateral trading system
and adhere more closely to the rules of international
trade.
Obtaining stronger, more effective rules in the Uruguay
Round should deal with specific trade barriers, including: the
European Community's variable levies on imports of agricultural
products and agricultural export subsidies; Japan's import
prohibition on rice; and discriminatory government procurement of
telecommunications equipment and heavy electrical equipment in
the European Community, to mention just a few.
The United States will continue to pursue negotiations in
the Uruguay Round aimed at eliminating these trade-distorting
practices and their effects on U.S. exports. Should insufficient
ner
progress be made in the Uruguay Round toward the goal of open
seor
markets and increased trade, there will be even greater pressure
for unilateral action on all sides.
8
A Challenge
The United States has made the successful conclusion of the
Uruguay Round by December of this year its number one trade
priority. We call upon our major trading partners to match this
commitment and to attach a similar priority to: the successful
outcome of the negotiations.
A comprehensive package of trade liberalization if achieved
in the Uruguay Round will benefit all participants in the
international trading system. However, in the event that it is
not possible to achieve such a package on a multilateral basis,
the United States will make effective use of the full range of
tools provided under the 1988 Omnibus Trade Act to achieve its
trade liberalization objectives.
Renewed Priorities
In the 1989 Super 301 process, the Administration identified
three priority countries: Japan, Brazil, and India. It also
identified six priority practices from those countries as being
emblematic of U.S. objectives in the Uruguay Round. Section 30
investigations were initiated on all six practices. During th
past month we have reached satisfactory solutions on all three
the Japanese practices, and we are confident that recent reforms
in Brazil will resolve our concerns about its import licensing
regime.
The priority practices in India -- trade-related investment
measures, and insurance market barriers -- remain unresolved.
Therefore, they continue to be identified as Super 301 priorities
for this year. The deadline for completing the section 301
investigations begun last year on these practices is June 16,
1990, and we urge India to work constructively with us to reach a
resolution by that date.
THE PAINT SIVIS
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
April 30, 1990
(Senate)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
S. 135 - Hatch Act Reform Amendments
(Glenn (D) OH and 51 others)
The Administration opposes the enactment of S. 135. If this bill
were presented to the President, his senior advisers would
recommend its disapproval.
S. 135 repeals virtually all of the Hatch Act's restrictions on
partisan political activity by Federal employees. This bill
would allow unrestricted, off-duty partisan electioneering and
political activity by all Federal employees. Such activity would
undermine the integrity and independence of the traditionally
non-partisan civil service.
Under S. 135, Federal employees would be vulnerable to both
direct and subtle political pressures. They could be pressed to
"volunteer" help in campaigns and to make financial contributions
in order to curry favor with one political party or another. The
bill's proposed safeguards against abuse are inadequate and
largely unenforceable.
The Administration believes the Hatch Act, which has served to
protect the public interest for half a century, is a valuable
safeguard of governmental integrity and should be preserved.
********
PRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE
UNITED
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
SERVISI
April 30, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 4557 - Department of Veterans Affairs Health Professionals
Compensation and Labor Relations Act
(Montgomery (D) MS and three others)
The Administration strongly opposes the enactment of H.R. 4557
because it would exempt the Veterans' Medical Care appropriation
from sequestration under Gramm-Rudman-Hollings (GRH). The
importance of veterans healthcare, and the need to cushion the
effect of sequester, is already recognized under current law.
Veterans' Medical Care, Medicare, and other health care programs
are protected by a 2 percent cap on sequestration of certain
activities. Exemption of Veterans' Medical Care is ill advised
and could encourage program-by-program exemptions that circumvent
the discipline of sequestration.
Unless H.R. 4557 is amended to delete the exemption from
sequestration, the Secretary of Veterans Affairs and the
President's other senior advisers will recommend that the bill be
vetoed.
The Administration also opposes H.R. 4557 because:
-- The pay provisions for VA physicians and dentists would
result in costs of $26 million in excess of those proposed
in the FY 1991 Budget. If this proposal were enacted, it
would permit VA's Chief Medical Director and Associate
Chief Medical Director to receive salaries in excess of
$200,000 annually. Other physicians could receive pay up
to $160,000 annually.
-- Provisions for nurse pay would abolish the current grade
structure in a manner that is not consistent with the
Administration's nurse pay bill pending in Congress. The
Administration's bill would retain the current grade
structure while permitting higher pay under a locality
based pay system.
-- It would extend premium pay currently reserved for
registered nurses to licensed practical nurses, licensed
vocational nurses, and nursing assistants. VA does not
have a problem recruiting or retaining staff in these
occupations, and already has the discretionary authority
to offer such compensation.
DEPARTMENT OFFICE fi PRESIDENT UNITED a
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
April 30, 1990
o
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 3625 - Congressional Gold Medal for
Laurance Spelman Rockefeller
(Udall (D) Arizona and 257 others)
The Administration has no objection to enactment of H.R. 3625.
*****
EDUCATION OFFICE WTM 1 PRESIDENT UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON. D.C. 20503
April 30, 1990
0
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
S. 2533 - Civil Aviation Penalty Assessments
(Ford (D) Kentucky and 3 others)
The Administration supports enactment of S. 2533.
*****
OFFICE WTR PRESIDENT OF UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
o
May 1, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 743 - Negotiated Rulemaking Act
(Pease (D) Ohio and 9 others)
The Administration, while not objecting to House passage of
H.R. 743, does have a number of concerns about the bill. The
Administration is concerned that H.R. 743 would:
-- Permit payment to private parties to represent their own
interests in a negotiated rulemaking committee.
-- Reduce accountability for agency spending by permitting the
Administrative Conference to pay agency expenses for a
negotiated rulemaking committee.
-- Allow negotiated rulemaking committees to continue to exist
until promulgation of a final rule. The responsibilities of
such a committee should properly end when it provides its
report and accompanying records to an agency.
The negotiated rulemakings undertaken pursuant to H.R. 743 must
also be conducted in a manner that would not undermine the
accountability and responsibility of Executive Branch officers to
conduct rulemaking functions.
*
*
OFFICE THE STATE UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
May 4, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 237 - Biological Weapons Anti-Terrorism Act of 1989
(Kastenmeier (D) Wisconsin and 52 others)
The Administration supports enactment of H.R. 237, as reported by
the House Judiciary Committee.
*****
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
May 4, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 2793 - Matsunaga Hydrogen Research and Development (R&D) Act
(Brown (D) California and 8 others)
The Administration supports the general intent of H.R. 2793 which
is consistent with existing Department of Energy and NASA
programs. The Administration, however, opposes the enactment of
H.R. 2793 because the bill would require greatly expanded Federal
hydrogen research programs and new demonstration programs. In
addition, the bill contains numerous unnecessary, burdensome, and
objectionable requirements. For example, H.R. 2793 would require
five separate comprehensive multi-year plans, establish two new
narrowly-focused advisory groups, and impose "Buy-America"
requirements.
The Administration is already conducting preliminary research
aimed at improving the economics of hydrogen production and use.
The Department of Energy is currently spending approximately $19
million per year on this research, and no additional
authorization is necessary. NASA is examining all aspects of
hydrogen relevant to the National Aerospace Plane Program, and
has already studied the application of hydrogen as fuel for other.
aircraft. NASA has concluded that the prospects for hydrogen
aviation fuels do not justify further research at this time.
The Department of Energy will be addressing hydrogen's potential
as a fuel along with other energy technologies in its
comprehensive National Energy Strategy. Targeting any particular
energy technology for accelerated R&D and demonstrations prior to
the completion of the National Energy Strategy this year would be
premature and could result in the misapplication of Federal
resources.
*
*
*
STATE UNITED OFFICE OF
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
o
May 4, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 3656 - Coordinated Clearance and Settlement Act
(Markey (D) Massachusetts and 5 others)
The Administration supports the enactment of H.R. 3656.
*****
OFFINIT OF
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
May 4, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 3657 - Securities Markets Stabilization Act of 1990
(Markey (D) Massachusetts and 5 others)
The Administration supports House passage of H.R. 3657 but will
seek amendments in the Senate to delete section 5. Section 5
would give the Securities and Exchange Commission sweeping powers
to prohibit temporarily any practice that has "previously
contributed to extraordinary levels of volatility" and that is
"reasonably likely to engender" such volatility. In the
Administration's view, these provisions are overly broad and
potentially harmful.
The Administration shares concerns that have been expressed about
problems associated with major market disruptions. However, the
Administration strongly opposes attempts to restrict particular
trading strategies, including computer trading. The
Administration is instead focusing on the mechanisms of the
individual markets and inconsistent intermarket regulation that
may cause major market disruptions.
*****
OFFICE WINE
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
o
May 3, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 4522 - Firefighters' Safety Study Act
(Meyers (R) Kansas and 26 others)
The Administration has no objection to enactment of H.R. 4522.
* * * *
PRESIDENT SEAT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
May 4, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.Res.
- Amendments to H.R. 1396, the Securities
Acts Amendments
(Dingell (D) Michigan)
The Administration opposes H.Res.
because it provides for the
Securities and Exchange Commission (SEC) to set its fees annually
to ensure that securities fees collected equal the SEC's annual
appropriation by FY 1996. The Administration opposes this
"self-funding" provision because:
-- It would diminish the budgetary controls over SEC spending
currently available to the Administration and Congress. In
particular, it would take the SEC's budget out of the
competition for scarce budgetary resources under the
appropriations and Congressional budget processes.
-- Based on current budget projections, it would reduce the
amount of receipts collected, and therefore increase the
budget deficit.
-- Setting securities fees equal only to SEC costs would not
allow for recovery of other costs of government regulation
of the securities market. Numerous other Federal agencies
incur costs related to this area, including the Department
of Justice.
-- It would be difficult to determine the appropriate fee rates
to equalize fee revenues and the SEC appropriation. Because
revenues are dependent on the often volatile level of market
activity, this equalization approach will prove both
cumbersome and unworkable.
-- Annual changes in SEC fee rates needed to equate revenues
with the SEC appropriation would induce greater uncertainty
into the financial markets.
-- It would inappropriately treat transactional and filing fees
that have been deposited in the General Fund of Treasury for
over 50 years as offsetting receipts available only to the
SEC.
*
*
*
FRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 10, 1990
(Senate)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
S. 2924 - Fish Safety Act of 1990
(Mitchell (D) ME)
The Administration supports an expansion of the existing seafood
inspection program in the Food and Drug Administration (FDA) and
the National Oceanic and Atmospheric Administration (NOAA). The
Administration, however, opposes S. 2924, which would move
virtually the entire program to the Department of Agriculture for
reasons unrelated to public health and safety. The
Administration prefers S. 2228, which will be offered as an
amendment in the form of a substitute. It would build on
experience and scientific expertise in the FDA and NOAA to
improve the inspection of all seafood products and aggressively
address the primary health and safety concern -- shellfish
contamination.
If any legislation is presented to the President that does not
include the principal elements of the Administration proposal,
his senior advisers would recommend a veto.
The Administration believes that overall responsibility for
seafood safety should remain with the FDA, an agency of the
Department of Health and Human Services, and NOAA, an agency of
the Department of Commerce. The President's FY 1991 Budget
includes an increase for the Federal seafood inspection program
directed toward those agencies. The Administration also supports
user fees to allow further enhancement of inspection services
that impart substantial private benefit to industry. The seafood
industry has requested additional Federal inspection, which may
increase public confidence and improve seafood marketing
opportunities. Thus, user fees are appropriate to finance a
portion of any expanded, program.
FDA's seafood safety program currently includes mandatory, random
inspections and extensive research, and relies on longstanding
relationships with States, other Federal agencies, and foreign
countries. Many of the activities in FDA's program require
highly specialized knowledge and training, including expertise in
marine biology and related marine disciplines. FDA's program
should remain the cornerstone of the Federal regulatory system
for seafood.
NOAA is the only Federal agency authorized to control fishing
activities of vessels in Federal waters and has closed those
2
waters to harvesting when a FDA tolerance for a contaminant in
shellfish has been exceeded. NOAA has an unsurpassed knowledge
of fishing vessels and acceptability of catch. Like FDA, NOAA
has experience in inspecting seafood processors under its current
voluntary program. This program, which complements FDA's
mandatory program, includes grading and lot certification for
export, features important for international trade. NOAA is also
the lead Federal agency with respect to fisheries trade policy
and strategy.
The clearest health risk from seafood involves the consumption of
raw molluscan shellfish, although less than one percent of all
seafood is consumed that way. This risk stems largely from human
pollution of coastal waters. Monitoring the quality of local
growing waters is the only viable recourse, and FDA and NOAA,
working with the States, are uniquely qualified to address this
public health problem. All State shellfish safety programs for
monitoring growing waters are based on FDA training and rely on
FDA technical assistance. S. 2228, the Commerce Committee
substitute, constitutes a more thorough and effective response to
this primary public health concern than does S. 2924.
* * * * *
OF PRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 10, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
S. 2597 - New Mexico Land Exchange
(Sen. Domenici (R) N.M. and Sen. Bingaman (D) N.M.)
The Administration supports enactment of S. 2597.
*****
CRESIDENT
OFFICE
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 10, 1990
(Senate)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
S. 1224 - Motor Vehicle Fuel Efficiency Act of 1990
(Bryan (D) Nevada and 14 others)
The Administration strongly opposes enactment of S. 1224.
If S. 1224 were presented to the President, his senior advisors
would recommend a veto.
S. 1224 would require each motor vehicle manufacturer to increase
the Corporate Average Fuel Economy (CAFE) level it achieved in
1988 by 20 percent in model year (MY) 1995 and by 40 percent in
MY 2001 for cars and light trucks. This would:
-- require major reductions in vehicle size and weight, which
would increase the risks of deaths and injuries to drivers
and passengers in automobile crashes. (Department of
Transportation studies clearly demonstrate that significant
weight and size reductions increase the risk of highway
injuries and fatalities.) ;
-- impose costs on automobile owners which are not likely to
be offset by fuel savings;
-- achieve fuel consumption reductions more slowly (since
higher vehicle costs would cause some consumers to keep
their older, less efficient vehicles) and less
substantially (since purchasers of very fuel-efficient
vehicles tend to drive them more than the vehicles they
replace) than a simple projection of CAFE levels would
suggest; and
-- be unattainable without significant and costly restrictions
on consumer choice.
Approaches grounded in market incentives, rather than the rigid
requirements S. 1224 would impose, would be more effective in
addressing energy, environmental, and other concerns related to
the levels of fuel use.
*
*
*
*
DEL
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
September 10, 1990
WASHINGTON, D.C. 20503
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 4739 - National Defense Authorization Act
For Fiscal Year 1991
(Aspin D-Wisconsin and Dickinson R-Alabama)
The Administration submitted a fiscal year 1991 budget designed
to ensure strong and capable military forces prepared to protect
and advance American interests around the globe. That budget
would maintain the U.S. capability to respond effectively to
regional crises which threaten American interests, such as the
current crisis in the Persian Gulf, and it takes account of the
changes in the Soviet Union and eastern Europe.
In contrast, H.R. 4739 provides (1) insufficient funding for
crucial strategic and conventional modernization programs; (2)
insufficient funding and flexibility to pursue effectively the
Strategic Defense Initiative (SDI) ; (3) insufficient troop levels
to defend American interests; (4) insufficient flexibility for
management of the reshaping of the armed forces, the defense
civilian work force, and the defense base infrastructure; and (5)
funding for items not needed for the national defense. The
President's senior advisers would recommend that he veto the bill
if it is presented to him in its current form.
The bill eliminates or underfunds crucial strategic and
conventional weapon systems and the SDI. of particular concern,
the bill:
--
Terminates the B-2 Stealth bomber program,
despite its value in a retaliatory force
shaped by the limits in the START Treaty, and
underfunds the strategic missile
modernization programs that remain essential
to deter the use of nuclear weapons.
-- Underfunds the SDI which holds promise of a
future defense against nuclear weapons. As
ballistic missiles capable of delivering
nuclear, chemical, biological or high
explosive warheads proliferate, the
importance of SDI continues to grow.
2
Underfunds the A-12 Avenger carrier-based
attack aircraft program that is essential to
replacing the aging A-6 aircraft that provide
the striking power for aircraft carrier
battle groups.
Underfunds and over-restricts the C-17 cargo
aircraft program that is crucial to
maintaining the strategic airlift capability
upon which America's ability to respond to
regional crises substantially depends.
Underfunds and over-restricts the Advanced
Tactical Fighter program that is essential to
ensuring that the United States maintains air
superiority in future conflicts.
The bill requires excessive cuts in military personnel. The
Administration plans to carefully reshape the armed forces.
However, the bill's single-year cut of 92,000 people, in addition
to the Administration's reduction of 38,000, is inconsistent with
the effective reshaping of the armed forces. So too is the
arbitrary reduction of the number of general and flag officer
positions. Moreover, the cut of 130,000 military personnel may
create unforeseen risks during a period in which the United
States has been forced to undertake substantial new overseas
deployments to defend vital American interests in and around the
Arabian Peninsula.
H.R. 4739 restricts the authority of the Secretary of Defense to
reshape the armed forces, the Defense civilian work force and the
defense base infrastructure. As the resources available for the
national defense shrink, the Department of Defense's need for
flexibility in administering the reduced resources becomes
paramount. Enactment of the Administration's proposed "Defense
Management Improvement Act," "Military Personnel Transition
Assistance Act," and "Defense Base Consolidation Act" would
provide that essential flexibility.
The Administration strongly opposes statutory micro-management of
the Department's allocation of its scarce resources, such as the
bill's certification and prior reporting requirements related to
various procurement programs, and its restrictions on personnel
and on the closure or realignment of unneeded bases.
Congressional restrictions, such as the requirement to more than
double the size of the Special Operations oversight staff, denies
needed flexibility. As the reshaping of the force structure
occurs, it is imperative that the Department of Defense has the
flexibility to close or realign under-utilized or unneeded bases.
H.R. 4739 would purport to require the Secretary of Defense to
submit legislative proposals dealing with base closures. The
Constitution confers on the President the power to submit such
3
legislative proposals as the President judges necessary and
expedient. Thus, Congress may not require him to submit proposed
bills.
It is critical that Congress not add low-priority or unneeded
items to the defense budget. Thus, for example, the bill should
not include funding for the V-22 Osprey aircraft program and for
items which were not requested for National Guard and Reserve
programs.
The bill would impose ill-advised, and in some cases
constitutionally suspect, provisions that purport to limit the
authority of the Executive Branch to deploy the armed forces.
These include geographic and numerical restrictions on the
deployment of personnel and equipment. Two provisions are of
particular concern. First is the prohibition on fulfillment of
the U.S. commitment to the NATO Alliance to base the 401st
Tactical Fighter Wing at Crotone, Italy. Second is the
requirement for "dual basing" of forces by assigning them within
the United States and rotating them on a short-term basis through
overseas deployments.
The Administration objects to sections 2811 through 2823 which
grant the Department of Defense authorities for the disposition
of Federally-owned real property. The provisions are at variance
with existing law, particularly the Federal Property and
Administrative Services Act of 1949, as amended. of special
concern is Section 2822 which would authorize the non-
reimbursable transfer of property known as Barracks "K" in
Arlington, Virginia. GSA's transfer of this property to the Navy
was the subject of intense litigation. Changing the conditions
of the transfer, as this section would, could be viewed as
circumventing the underlying facts upon which the U.S. District
Court based its decisions and could possibly result in additional
litigation.
The Administration also objects to the provisions of H.R. 4739
which (1) require an unnecessary study of the safety of removing
obsolete chemical weapons from the Aberdeen Proving Ground and
Lexington Bluegrass Arsenal; (2) limit the discretion of the
Director, Office of National Drug Control Policy, to direct
programs with state and local law enforcement officials; and (3)
limit the Secretary's ability to make resource allocations and
contract policy decisions by transferring the decision whether or
not to implement OMB Circular A-76 to local installation
commanders.
Additionally, the Administration strongly objects to the
following amendments:
-- The AuCoin-Machtley amendment which would
require medical facilities of the uniformed
4
services outside the United States to perform
abortions.
The Gilman amendment which includes the text
of H.R. 2544 that allows Federal agencies to
make Federal student loan payments on behalf
of certain employees. The Department of
Education has previously recommended that
this provision be vetoed. Studies have
indicated that forgiveness of loans has not
been effective in inducing individuals to
enter a particular profession. The Gilman
amendment would set a dangerous and very
costly precedent by allowing forgiveness for
Federal civil servants in the Guaranteed
Student Loan (GSL) programs, and it would
lead to pressure for forgiveness for many
other meritorious activities. Given the size
of the GSL program, with $52 billion in loans
outstanding, the potential cost to the
Government is substantial. Also, the Federal
Government should not be in a position of
"rewarding" students who finance their
education through student loans, and
effectively penalizing students who choose
work or savings to finance their post-
secondary education.
The Bennett amendment which limits post-
government employment opportunities. The
amendment is unwarranted and inconsistent
with the Ethics Reform Act principles of
uniform treatment of employees in all
agencies and is a prejudicial deterrent to
the ability of the Administration to attract
capable defense managers and administrators.
The Wyden amendment which would preclude the
addition of any waste to single and double-
shelled tanks at Hanford until two oversight
boards certify that the risk of tank
explosions is not credible. The Department
of Energy (DOE) has already initiated
detailed reviews related to tank safety. Use
of certain double-shelled tanks is required
for necessary waste processing. This
provision is an improper use of the boards'
statutorily-defined roles and functions, and
it reduces their potential objectivity.
The second Wyden amendment under which the
DOE would be required to reimburse local,
5
State and Federal environmental agencies for
expenses related to the environmental
oversight activities conducted pursuant to
the Comprehensive Environmental Recovery,
Conservation and Liability Act (CERCLA).
Local governments do not have oversight
authority under CERCLA, and under current law
and Federal Facility Compliance Agreements,
DOE provides for reimbursement of State
oversight. The Administration believes that
it would be inappropriate for another Federal
agency to be required to augment
Environmental Protection Agency (EPA)
appropriations for EPA's activities; the
authority already exists. The Administration
is also opposed to similar requirements for
EPA reimbursement in the Bustamante
Amendment.
*****
CRESSING
EXECUTIVE OFFICE OF THE PRESIDENT
CENTER
OFFICE OF MANAGEMENT AND BUDGET
STATE
STATE
WASHINGTON, D.C. 20503
September 10, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 5267 - Cable Television Consumer Protection and
Competition Act of 1990
(Markey (D) Massachusetts and Rinaldo (R) New Jersey)
The Administration strongly opposes reregulation of the cable
television industry. If H.R. 5267 were presented to the
President in its current form, his senior advisers would
recommend a veto.
The Administration opposes H.R. 5267 because it imposes a new
regime of Federal regulation over the cable industry beyond that
established in the Cable Act of 1984. Specifically, the
Administration opposes provisions that would implement additional
Federal regulation over cable rates. The Administration also
opposes provisions that place restrictions on the ability of
cable programmers to distribute their product.
The Administration opposes Section 15 of H.R. 5267 that would
restrict foreign ownership of U.S. cable systems. Such a
restriction invites retaliation by other nations that could
stifle the growing investment of U.S. firms in foreign cable
systems and could hinder U.S. efforts to open foreign markets.
These provisions would violate existing international obligations
under the Organisation for Economic Cooperation and Development's
(OECD) Code of Liberalization of Capital Movements and would
undercut U.S. efforts in the OECD and the General Agreement on
Tariffs and Trade.
In addition, Sections 4 and 5 of H.R. 5267 would require cable
operators to carry the signals of certain television stations.
This would be required regardless of whether the cable operator
believes that the stations are appropriate for inclusion in its
package of services, and regardless of whether such inclusion
reflects the desires and tastes of cable subscribers. The
Administration believes that these "must carry" requirements
would raise most serious constitutional questions under the First
Amendment by infringing upon the editorial discretion exercised
by cable operators in their selection of programming.
Section 3 of H.R. 5267 also raises similar constitutional
concerns by requiring cable operators to offer, as one of their
service options, a prescribed "basic service tier" to which they
may not add any video programming.
2
The Administration continues to believe that competition, rather
than regulation, creates the most substantial benefits for
consumers, and the greatest opportunities for American industry.
Consistent with this principle, the Administration supports
removing barriers to entry by new competitors into the video
services marketplace. Congress should consider removing the
current legislative prohibitions on telephone company entry found
in the 1984 Cable Act as an alternative to instituting a
burdensome and unnecessary regulatory regime.
*****
PRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
UNITED
OFFICE OF MANAGEMENT AND BUDGET
P
STATES
WASHINGTON, D.C. 20503
September 12, 1990
(Senate)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
S. 110 - Family Planning Amendments of 1989
(Kennedy (D) MA and 41 others)
The Administration strongly opposes enactment of S. 110. If this
bill were presented to the President in its current form, his
senior advisers would recommend its disapproval.
The Administration supports a Federal role in providing family
planning services. However, S. 110 is designed to erode the
integrity of the Federal family planning program by promoting its
involvement in abortion. Title X is a preventive family planning
program designed to reduce the incidence of abortion. It should
not be involved in abortion-related activities in any way.
The Administration supports family planning programs that are not
abortion related. The President's 1991 Budget includes a
proposal that would provide for maximum State and local control
over sensitive issues surrounding the delivery of family planning
services. Specifically, the Administration has proposed that the
current Title X categorical family planning program be changed to
a program of direct grants to States. State-administered family
planning programs are the best means available for delivery of
family planning services to low-income persons. This important
change would have the added benefit of better integrating family
planning with the delivery of maternal and child health services.
Further, this proposal does not use taxpayer dollars to promote
abortion.
S. 110 would not convert the current Title X program into a
direct grant program to States. In addition, it would not
prevent the potential diversion of funds from the primary focus
of the program -- prevention of unintended pregnancies and
facilitation of wanted pregnancies. The bill's total FYs 1990-92
authorizations are also excessive -- exceeding the President's
budget request by $172 million. Finally, the provisions of
S. 110 that would provide duplicative authority for contraceptive
research, as well as information and education activities, are
unnecessary. Current authorities are broad enough to encompass
such activities.
********
OFFICE PRESIDENT UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 12, 1990
(House Rules)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 4330 - National Service Act of 1990
(Hawkins (D) CA and 26 others)
The President strongly supports the concept of community service.
He has challenged all individuals and institutions to make
service central to their lives and work.
The Administration, however, strongly opposes H.R. 4330 because
it is incompatible with the President's concept of voluntary
service. If H.R. 4330 were presented to the President in its
current form, his senior advisers would recommend a veto.
H.R. 4330 would:
-- Provide unnecessary financial incentives for service. It
includes unjustified deferment and cancellation of certain
student loan payments for full-time professional staff in
drug counseling, prevention and treatment programs and full-
time volunteers. These costly provisions extend the concept
of "volunteer" far beyond reasonable bounds.
-- Attempt to direct community service efforts from the Federal
level rather than from the community.
-- Emphasize short-term volunteer participation and financial
rewards, concepts inconsistent with a sustained commitment
to volunteerism. The reward for voluntary service should
never be seen as financial.
-- Authorize $212 million for FY 1991 for unwarranted new
Federal programs and expansion of existing programs
(excluding the costs of the loan deferment and cancellation
provisions and the costs of administering the new programs).
-- Establish an American Conservation Corps that would
substantially recreate outdated programs previously offered
through the Youth Conservation Corps and Youth Adult
Conservation Corps. Such programs are costly and based on
the discredited approach to youth employment that relies on
temporary public sector employment rather than preparing
youth for long-term, private sector employment.
********
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON. D.C. 20503
September 17, 1990
(Senate)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 1677 - Children's Television Act of 1990
(Bryant (D) Texas and 43 others)
The Administration is concerned about the need to protect
children from excessive commercial advertising and to enhance the
quality of children's television. Nevertheless, because the
approach adopted in H.R. 1677 will likely be self-defeating and
because the bill raises extremely serious questions under the
First Amendment, the Administration strongly opposes its
enactment.
As the Administration has previously indicated, serious
constitutional questions are raised by the provision in H.R. 1677
that permits the denial of broadcast license renewals if a
station does not carry what the Government views as adequate
programming for children. The bill's imposition of rigid
quantitative limits on advertising during children's programming
also raises constitutional questions, and the provision may
actually cause a reduction in the amount and/or quality of
children's programming by reducing the funding available for it.
The provision extending the bill's advertising restrictions to
cable operators creates new and extremely serious First Amendment
problems. Whatever basis may exist for heightened regulation of
broadcast licensees because of a "scarcity of broadcast
frequencies," this rationale is inapplicable to cable operators.
Accordingly, cable television is entitled to the same First
Amendment protection as the print media. Although commercial
advertising is subject to the commercial speech doctrine, rather
than to the strictest standards of First Amendment scrutiny,
H.R. 1677's restrictions on cable operators raise extremely grave
constitutional problems.
*
*
*
REF
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 17, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 4309 - Smith River National Recreation Area Act
(Bosco (D) California)
H.R. 4309 would establish a 300,000-acre National Recreation Area
in the Six Rivers National Forest in northern California, to be
administered by the Secretary of Agriculture. While the
Administration generally supports H.R. 4309 as introduced, the
Administration opposes the bill as reported by the Interior and
Insular Affairs Committee because this version would:
-- prohibit mining on valid existing claims. The
Secretary of Agriculture would be required to
compensate existing claimants for this taking of
their private property rights. There are over
5,000 claims within the boundary of the proposed
National Recreation Area. One firm alone has
spent approximately $20 million just on mineral
documentation. While the Department of
Agriculture does not have an estimate of the
value of these mining claims, such compensation
would be very costly;
-- prohibit most timber harvest within the corridors
of designated wild and scenic rivers. Under
current law, the Wild and Scenic Rivers Act would
allow harvesting on rivers classified as
recreational and scenic. Without the
prohibition, harvesting would be allowed on
approximately 100 miles of the designated rivers.
The prohibition would result in 11,500 acres of
timbered land and 172,500,000 board feet of
standing timber being unavailable for harvest;
and
-- provide unjustified Federal payments to local
counties at a cost totalling $10 million.
If H.R. 4309 is presented to the President in its current form,
the Secretary of Agriculture would recommend a veto.
STATES PRESIDENT SECURITY
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 21, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 4323 - Great Lakes Water Quality Improvement
Act of 1990
(Nowak (D) New York and 26 others)
The Administration opposes enactment of H.R. 4323 because the
bill would impose unreasonable deadlines on the Environmental
Protection Agency and certain States, and is inconsistent with
the President's FY 1991 Budget.
The requirements for the development and adoption of specific
numeric water quality criteria for the Great Lakes within strict
timeframes is unrealistic. The lack of necessary flexibility
could actually impede the ongoing efforts to develop and adopt
water quality standards as required by the Clean Water Act.
Further, the bill's FY 1991 authorization level of $30 million
exceeds the President's recommendation by $18 million and creates
an unwarranted new State grant program. Finally, the bill
contains numerous provisions which would duplicate existing Clean
Water Act authorities.
*
OF PRESIDENT DEPARTMENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 21, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 5255 - National Fish and Wildlife Foundation
Establishment Act Amendments of 1990
(Studds (D) Massachusetts and 3 others)
The Administration has no objection to House passage of H.R. 5255
which reauthorizes the National Fish and Wildlife Foundation.
However, the Administration strongly objects to the nearly five-
fold increase in the funding authorization for the Foundation
provided by H.R. 5255, and will seek amendments in the Senate to
eliminate this increase.
Chartered in 1985, the Fish and Wildlife Foundation was
established to attract private sector funding to complement the
activities of the U.S. Fish and Wildlife Service. The Fish and
Wildlife Foundation Establishment Act authorized "seed money"
totaling $1 million over a period of ten years. The legislative
intent was that the Foundation would become self-sustaining.
The Foundation, however, has received ever-increasing amounts of
Federal moneys. In 1988, the ceiling on Federal funding was
increased to $5 million for each of fiscal years 1988 through
1993, and H.R. 5255 would increase the amount to $15 million for
FY 1991, to $20 million for FY 1992, and to $25 million for
FY 1993.
*****
OFFICE with PRESIDENT SERVICE UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 21, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
S. 1413 - Aroostook Band of Micmac Settlement Act
(Cohen (R) Maine and Mitchell (D) Maine)
The Administration strongly opposes S. 1413 because it would
provide statutory Federal recognition of the Aroostook Band of
the Micmac Tribe (Maine). The Administration has consistently
opposed legislation that provides Federal recognition of Indian
tribes by Congress. If S. 1413 is presented to the President in
its current form, the Secretary of the Interior would recommend
that he veto the bill.
To accord the Aroostooks Federal recognition would circumvent the
Department of the Interior's acknowledgement process that all
other similarly situated groups are required to complete. This
would be unfair to all other groups seeking recognition. In
addition, it would further weaken Interior's administrative
process that was designed, with the support of Congress, to
eliminate the need for ad hoc determinations through legislation.
*****
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE
MASSACHUSETTS
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 21, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 4450 - Coastal Zone Management Act
Reauthorization Amendments
(Hertel (D) Michigan and 2 others)
The Administration supports reauthorization of the Coastal Zone
Management Act (CZMA) and amendments to encourage States to
improve management of the coastal zone. The Administration has
submitted legislation (H.R. 4438) to reauthorize and amend the
CZMA. H.R. 4438 would encourage States to meet specific
high-priority national objectives to address more efficiently
coastal and ocean environmental problems.
However, if H.R. 4450 is presented to the President in the form
of the subtitute to be considered by the House, the Secretaries
of the Interior, Defense, Agriculture, and Energy, and the
Attorney General, would recommend a veto because it would be
likely to be interpreted to:
-- subject Outer Continental Shelf (OCS) lease sales to
review for consistency with State coastal zone management
programs; and
-- broadly expand the application of the CZMA's
"consistency" provisions to encompass a wide range of
Federal activities undertaken beyond the traditionally
defined area of the coastal zone and impose new
restrictive standards on Federal agencies in conducting
those authorized activities.
The Administration would also oppose enactment of H.R. 4450
unless it is amended consistent with H.R. 4438 to authorize
appropriations at levels requested in the 1991 Budget, and to
delete provisions that would:
-- Shift the focus of the CZMA from balanced management
to coastal protection (amendments to sections
302(5)). The language proposed by the Administration
reflects the proper balance in that it gives priority
to environmental protection while also allowing for
economic development.
-- Imply in its findings a new larger, but undefined,
role for States "outside the coastal zone" (proposed
new CZMA section 302 (9) ) . This should be amended to
conform with section 303 (e) (7) of H.R. 4438. The
2
Administration's proposal would allow the Secretary
of Commerce to respond to changing circumstances and
emerging issues that affect the coastal zone.
-- Reestablish the Coastal Energy Impact Program.
The Administration prefers the approach contained in H.R. 4438,
which offers incentives and technical assistance to States to
encourage voluntary compliance with the CZMA program. The
Administration's proposal, with its competitive grant proposal,
would encourage States to assume a greater role than the formula
grant approach in H.R. 4450.
*****
UNITED OFFICE OF TRENDEN
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 21, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
S. 2075 - Indian Environmental Regulatory
Enhancement Act of 1990
(McCain (R) AZ and 3 others)
The Administration supports the goal of assisting Indian tribes
to improve environmental quality. The Administration, however,
opposes S. 2075 because it would establish an unnecessary new
grant program to achieve that goal.
Generally, the activities specified in the bill could be achieved
under existing authorities. For example, under the Native
American Programs Act of 1974, almost $1 million has been awarded
to 20 grantees for the establishment of tribal environmental
codes. Further, Indian tribes that qualify for consideration as
States are already eligible to receive grants and administer
environmental programs under most environmental statutes
administered by the Environmental Protection Agency.
*******
GREAT OF 0 MASSACHUSETTS
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 21, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 4559 - Red Rock Canyon National Conservation Area
(Bilbray (D) Nevada)
The Administration has no objection to House passage of
H.R. 4559, but will work in the Senate to amend section 8 which
reserves water rights for the proposed Red Rock Canyon National
Conservation Area in Nevada. Section 8 should stipulate that any
reservation of water rights needed for the conservation area
should be done under State law.
*
*
*
*
OFFICE WINE PRESIDENT o MASSACHUSETTS UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 21, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 5643 - Temporary Extension of Executive Exchange Programs
(Sikorski (D) MN and Morella (R) MD)
The Administration has no objection to enactment of H.R. 5643.
*******
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 21, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 4131 - Foreign Contracting Audit Equity Act
(Conyers (D) Michigan and 15 others)
The Administration opposes enactment of H.R. 4131 because it
would place significant burdens on the acquisition process,
discriminate against foreign firms, and invite foreign
retaliation, which would adversely affect U.S. companies.
In particular, the Administration objects to provisions of
H.R. 4131 that would:
-- Require Executive agencies to obtain greater inspection and
audit rights from a foreign contractor than from a U.S.
contractor. This discrimination would weaken U.S.
negotiating positions with foreign contractors and hinder
competition between foreign and domestic firms.
-- Require foreign auditors, when performing audits for the
U.S. Government pursuant to international agreements, to
use U.S. auditing standards. Foreign auditors currently
apply U.S. cost principles to determine the allowability of
costs on U.S. contracts. To require the use of U.S.
auditing standards would be contrary to the primary
rationale for reciprocal audit agreements.
-- Permit examination by the Comptroller General of any
records of any foreign contractor. This provision
discriminates against foreign firms because it would place
a greater burden on foreign contractors than currently
exists on U.S. contractors. This is inconsistent with
current law, which provides access to records of both U.S.
and foreign contractors that "directly pertains to, and
involves transactions relating to the contract or
subcontract."
*****
PRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 21, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 486 - Defense Production Act Amendments of 1990
(Oakar (D) Ohio)
The Administration opposes H.R. 486 and urges Congress to adopt
the Administration's proposal, H.R. 4766, which would provide for
permanent re-authorization of the Defense Production Act (DPA).
If H.R. 4766 is not adopted, the Administration would support an
extension of the existing DPA for two years rather than enactment
of H.R. 486. Such an extension could include several provisions
of H.R. 4766 or H.R. 486 that are directly related to the energy
aspects of the current situation in the Persian Gulf.
The DPA vests the President with the authority to direct
materials and facilities from civilian to national defense use to
ensure adequate industrial production and supply for national
security purposes. Additionally, it authorizes loans, loan
guarantees, purchase guarantees, antitrust protection and the use
of the National Defense Executive Reserves (NDER). H.R. 486,
however, would change the DPA to a statute which infringes upon
the President's authority, establishes unneeded authorities and
unwarranted reporting requirements, and authorizes unnecessary
expenditures.
The provisions of H.R. 486 that are most troublesome to the
Administration are sections 4, 5, 6 and 10. The Administration
also opposes the approach used to remedy the conflicts of
interest problem contained in section 8.
Section 4 of H.R. 486 would establish an array of industrial
policy initiatives and procurement restrictions that could be
counterproductive to the long term strengthening of the
industrial base. Further, Section 4 would require that these
procurement restrictions be included in all existing and future
"Memorandums of Understanding." This would, in effect, be a
unilateral amendment to previously negotiated international
agreements.
Section 5 an unnecessary increase in the authorization levels for
the existing Defense Information Network (DINET). The existing
DINET system, as augmented by already planned improvements, will
be adequate for Defense's needs.
Section 6 of H.R. 486 would authorize $130 million per year for
the loans, loan guarantees and purchase commitments authorized by
Title III of the Defense Product Act. The Administration has
requested only $50 million per year for these programs.
Section 10 of H.R. 486 would authorize funds for a Congressional
Commission on Evaluation of Defense Industrial Base Policy. The
defense industrial base has been studied numerous times over the
last several years and further reports such as those proposed by
the Commission are not considered necessary.
Finally, although the Administration endorses the purpose of
section 8, relating to conflicts of interest, it disagrees with
the approach used to remedy the problem. Section 10 of
H.R. 4766, the Administration's proposed amendments to the DPA,
addresses the need for a national interest waiver in a manner
that will not only protect fully the public and any individual
receiving such a waiver, but allow for the expanded use of any
individual's service during a time of national emergency.
As noted above, several provisions of both H.R. 4766 and H.R. 486
are directly related to the energy aspects of the current
situation in the Persian Gulf. These include the bills' improved
authority for the use of "voluntary agreements," the
clarification that the DPA's priority contract rating authority
applies to "services" contracts, and the bills' provisions
concerning the NDER. With the caveat just noted about the form
of the language concerning the NDER, the Administration urges
that these provisions be enacted in the context of any bill that
otherwise would extend the existing DPA.
THE WHITE HOUSE
WASHINGTON
September 21, 1990
MEMORANDUM FOR ALL WHITE HOUSE AND OFFICE OF POLICY DEVELOPMENT
STAFF
FROM:
GOVERNOR JOHN H. SUNUNU
CHIEF OF STAFF
sale
SUBJECT:
Mandatory Ethics Briefing - MONDAY
Nearly half of the White House/Office of Policy Development staff
has not attended one of the three ethics briefing sessions held
this week. The last large group briefing session is scheduled
for Monday, September 24, 5:30 p.m. - 7:00 p.m. in Room 450 of
the OEOB.
Unless your office has made arrangements for a separate briefing,
this session is mandatory for all White House Office and Office
of Policy Development staff. (Individuals in other Executive
Office of the President agencies should receive ethics training
through their own agencies.)
If you have any questions, you can direct them to the Counsel's
Office at x2674.
EDUCATION OFFICE WIN PRESIDENT Q SIVIS 9 UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 21, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 2840 - Coastal Barrier Improvement Act of 1990
(Jones (D) N.C. and 48 others)
The Administration supports enactment of H.R. 2840.
*****
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 21, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 5314 - Water Resources Development Act of 1990
(Anderson (D) California and three others)
Any new Water Resources Development Act must preserve the
critical cost sharing principles and policy reforms established
by the Water Resources Development Acts (WRDA) of 1986 and 1988.
These reforms emphasize high priority urban flood control and
commercial navigation water resources projects. They ensure that
all projects have thoroughly documented economic and
environmental justifications in accordance with long-standing
Federal principles and guidelines. Finally, they guarantee that
the beneficiaries of water resources projects pay for their share
of project-related benefits.
H.R. 5314 fails to maintain these principles and reforms.
Preliminary estimates indicate that the bill would create over
$4.1 billion in future funding commitments. Given the demand to
reduce current and future appropriations, this would preclude
Federal funding of worthy, high priority flood control and
navigation projects in the future. Thus, if H.R. 5314 were
enacted in its current form at the House reauthorization levels,
the President's senior advisers would recommend that he veto the
bill.
The Administration could support H.R. 5314 if were amended to
delete:
-- 18 projects which have not undergone environmental
and economic feasibility studies, and five
conditionally authorized projects;
-- numerous provisions which would require the Federal
Government to assume various non-federal
responsibilities. These responsibilities include the
development of recreation facilities, replacement of
a U.S. highway bridge, levee beautification, and
agricultural land improvements, and;
-- numerous provisions which would weaken established
cost-sharing reforms. These provisions include
waivers of WRDA cost sharing requirements for
specified projects and studies, and an unwarranted
expansion of the "ability to pay" policy, which
ensures that appropriate State and local resources
2
are considered when calculating beneficiary financial
means.
In addition, the Administration strongly objects to the bill's
failure to include certain provisions contained in the
Administration's Water Resources Development bill.
****
OFFICE
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 21, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 3533 - Earthquake Hazards Reduction Act Amendments
(Emerson (R) Missouri and 71 others)
The Administration supports reauthorization of the Earthquake
Hazards Reduction Program (NEHRP) consistent with the President's
budget. However, the Administration opposes enactment of
H.R. 3533 because it would require unnecessary and costly
modifications to the program. Specifically, H.R. 3533 is
objectionable because it would:
:
Authorize appropriations that exceed the President's
budget by $31 million in FY 1991 and $231 million for
FYs 1991-1994 for all four NEHRP agencies.
:
Require minimum levels of funding by the National Science
Foundation (NSF) that would impose unnecessary constraints
on its support for earthquake-related research and adversely
affect other high-priority NSF research programs.
Confer unrealistic responsibilities on the Federal Emergency
Management Agency (FEMA) with respect to the NEHRP's content
and budgetary matters.
:
Outline in statute specific agency responsibilities at
a level of detail that would inappropriately restrict
agency flexibility to effectively administer and
respond to differing needs of earthquake hazard areas.
--
Impose statutory requirements that would dilute levels
of State and local financial support for the State
seismic safety assistance program.
--
Mandate fixed deadlines for the Federal Government to
establish seismic safety standards for existing Federal and
Federally-assisted buildings. These deadlines may be
unrealistic given the need for more research in this area.
Moreover, the bill fails to address the need for any such
standards to be cost-effective.
--
Require the Office of Science and Technology Policy to
report to Congress on how it can play a role in
coordination, planning, and operation of the program.
Such responsibilities would duplicate the lead agency
role and that of the proposed advisory committee.
OFFECE PRESIDENT STATE UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 21, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 3684 - National Environmental Education Act
(Miller (D) California and 39 others)
The Administration has no objection to House passage of
H.R. 3684. However, the Administration will seek amendments in
conference to incorporate the President's FY 1991 Budget proposal
for the Council on Environmental Quality to establish awards for
excellence in environmental education. The Administration will
seek additional amendments, including amendments to ensure that
the National Environmental Education Foundation authorized by
this bill is not a governmental entity, and to delete the
requirement that EPA develop model environmental education
curricula.
*****
FREE PRESIDENT SERVICE
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 21, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 4491 - Coast Guard Omnibus Act of 1990
(Jones (D) North Carolina)
The Administration supports House passage of H.R. 4491, but will
seek amendments in the Senate to delete:
--
section 3, which would authorize Federal expenditures
for a bridge which should be maintained and improved
with local funds;
--
section 7, which would cast doubt on the Coast Guard's
ability to impose adequate bonding requirements on its
contractors;
--
sections 9, 10, 11, and 14, which would inappropriately
provide for the transfer of Federal property without
following established procedures for disposal of
Federal real property;
-- section 12, which would delay improvements in the Coast
Guard's automated information system; and
--
section 15, which would authorize appropriations of $6
million for transfer to the University of Alaska to
establish a cold water survival school. This
inappropriate earmarking would detract from other,
higher priority, Coast Guard programs.
*****
UNITED OFFICE PRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 21, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 2006 - To expand the powers of the Indian Arts
and Crafts Board
(Kyl (R) AZ and Campbell (D) CO)
The Administration supports House passage of H.R. 2006, but will
work in the Senate to modify the bill's flawed definition of
Indian tribes. In this regard, language should be deleted that
would otherwise provide tribes that are not federally recognized
with the protections afforded by this Act.
* * * * *
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 21, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 4793 - Small Business Reauthorization and Amendments Act of
1990
(LaFalce (D) New York and 42 others)
If H.R. 4793 is presented to the President containing Title II in
its current form, the Secretary of the Treasury will recommend a
veto. The Administration also opposes enactment of H.R. 4793
because it contains unrealistically high authorization levels and
unnecessarily costly programs and requirements.
Title II of H.R. 4793 would permit certain SBA borrowers to
prepay their borrowings from the Federal Financing Bank at
substantially reduced premiums, and to finance up to $150 million
per year of such prepayments with new loans fully guaranteed by
the Government. The effect of Title II would be to allow a
borrower to change the borrowing terms to which it had agreed
when it is favorable to the borrower -- and therefore unfavorable
to the Bank and American taxpayers -- to do SO.
H.R. 4793 should be amended to authorize FY 1991 program levels
consistent with the President's Budget. Specifically, the
Administration recommends program levels of $5 million for 8 (a)
direct loans (with no authorization for other forms of direct
loans) ; $3.83 billion for guaranteed loans; and $1.5 billion for
surety bond guarantees. The FY 1991 authorization levels in H.R.
4793 exceed these amounts by $96 million, $440 million, and $300
million, respectively. H.R. 4793 also contains authorization
levels for these programs for FYs 1992-94 at levels increasingly
greater than those for FY 1991. The Administration recommends
that these FY 1992-94 authorizations be deleted.
For the Small Business Development Center (SBDC) program, the
Administration recommends authorization levels of $30 million for
FY 1991 and $15 million for FY 1992. The Administration
recommends deletion of section 103, which would extend the SBDC
program beyond FY 1992. This program has attracted substantial
funding from non-Federal sources and should be permitted to
become independent of Federal funding at the end of FY 1992.
H.R. 4793 should also be amended to delete:
-- section 104, which would involve the Small Business
Administration (SBA) in reforestation activities more
properly administered by the Department of Agriculture;
-- section 108, which would require that the Deputy SBA
Administrator, currently appointed by the SBA
Administrator, be appointed by the President;
-- sections 109 and 118, which would impose unnecessary
delays on the Federal procurement process; and
-- Title III, which contains several costly and
unnecessary mandates regarding small businesses in
rural areas.
* * * * *
OFFECE win PRESIDENT MASSACHUSETTS
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 21, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 4279 - Intergovernmental Cash Management Improvement Act
(Conyers (D) Michigan and Horton (R) New York)
The Administration supports House passage of H.R. 4279. The bill
provides procedures and incentives for better cash management at
the Federal and State levels. Implementation of H.R. 4279 would
assure the States that Federal funds would arrive on time and
that States would prudently manage their drawdowns of Federal
funds.
The Administration will work with the Senate or in conference to
address the following concerns:
-- Payment of interest to States should only be made when the
Federal Government is obligated to pay by a certain date,
but has not provided the funds by that date. Payment of
interest to States should not be made when States have made
disbursements in anticipation of an appropriation.
-- Administrative costs incurred by States in complying with
provisions of H.R. 4279 are indirect costs of a Federal
program, and should be reimbursed as overhead, not as
direct costs. The direct funding method would not
encourage efficient administrative practices in calculating
interest due.
-- Calculation of interest rates should be determined at
equivalent rates to auctions of 13-week Treasury bills,
specifically during the preceding calendar quarter.
Stating that interest rates are to be calculated at the
equivalent rates of 13-week Treasury bills auctioned
"during the period for which interest is calculated" is
ambiguous. This could create substantial burdens on the
Treasury Department.
*****
THE PREVIDENT SERVICE
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 24, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 5316 - Federal Judgeship Act of 1990
(Brooks (D) Texas and Smith (R) Texas)
The Administration supports House passage of H.R. 5316 and will
continue to support the Judicial Conference's request for
additional judgeships.
H.R. 5316 would create 11 new judgeships for the courts of
appeals and 48 for the district courts. These judgeships will
fill some of the clear needs in the Judicial branch. The bill,
however, does not meet the needs expressed in the Judicial
Conference recommendations of June 22, 1990, for 96 additional
judgeships -- 20 for the courts of appeals and 76 for the
district courts.
The Administration supports the Judicial Conference
recommendations and believes that these additional resources are
needed to meet current caseload requirements. Furthermore, the
Administration supports additional judgeships to hear the many
new drug trafficking and money laundering cases, and savings-and-
loan and other financial institution cases (criminal and civil
fraud, tax, and bankruptcy), that it is pursuing.
*****
CRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
STATE
WASHINGTON, D.C. 20503
September 24, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 5381 - Federal Courts Study Commission Implementation Act
(Kastenmeier (D) Wisconsin and Moorhead (R) California)
The Administration has no objection to House passage of
H.R. 5381, but will seek Senate amendments to delete:
-- Section 109, which would allow removal to Federal district
courts of civil actions involving more than one claim or
cause of action only where at least one of the claims
involves a "Federal question." This section would relegate
many matters, in which a Federal interest predominates, to
State courts. It would impair the Justice Department's
ability to defend the United States and its agencies,
officers and employees.
-- Section 110, which would allow actions to be brought
against the United States in any district where "a
substantial part of the events or omissions giving rise to
the claim occurred" or a "substantial part of the property
is situated." This section would generate additional
litigation over the meaning of these ambiguous terms and
invite plaintiffs to engage in forum shopping.
-- Section 114, which would create new jurisdiction in the
Federal courts to hear State law claims. This section
would invite plaintiffs to use limited jurisdictional
grounds as an unwarranted basis to bring related State law
suits into Federal court. It would complicate
unnecessarily private and Government litigation.
Section 108 of the bill incorporates the Administration's
proposal for an orderly phase-out of parole. The Administration
supports this provision. The Administration defers to the
Judicial branch with respect to provisions involving the internal
administration of that branch.
OFFICE WTM PRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 25, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 5269 - Comprehensive Crime Control Act of 1990
(Brooks (D) Texas and Hughes (D) New Jersey)
If H.R. 5269 were presented to the President in its current form,
his senior advisors would recommend a veto.
The President supports anti-crime legislation along the lines of
the "Comprehensive Violent Crime Control Act of 1989" that he
transmitted to Congress last year. Major provisions of that
measure (H.R. 2709) would: (1) establish the procedures
necessary to institute the death penalty for certain Federal
offenses; (2) restore an appropriate degree of finality to State
and Federal criminal convictions by curtailing abuses of the writ
of habeas corpus; and (3) reform the "exclusionary rule" by
making admissible evidence obtained as a result of a search or
seizure undertaken in objectively reasonable good faith, as
determined by a court.
H.R. 5269 would accomplish none of these objectives. On the
contrary, it would:
O
Establish procedures that would effectively abolish the
death penalty in the United States.
Reduce the degree of finality of convictions by
weakening procedures relating to habeas corpus.
Establish "exclusionary rule" procedures that would
reverse existing case law by creating additional
barriers to the admissibility of evidence.
Excessively increase authorization levels for
drug enforcement beyond those provided in the
President's 1991 Budget for Federal grants for State
and local law enforcement and criminal justice systems.
The President's Budget already provides for a 21
percent increase in State and local drug assistance,
which will expand funding 161 percent since FY 1989.
While H.R. 5269 does contain a number of meritorious features,
the Administration will propose amendments to rectify its
deficiencies, including those noted above. The Administration
will continue to work with Congress toward the enactment of
effective anti-crime legislation.
*****
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 26, 1990
(Senate)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
S. 1379 - Defense Production Act Amendments of 1990
(Dixon (D) Illinois)
The Administration opposes S. 1379 and urges Congress to adopt
the Administration's proposal, S. 2168, which would provide for
permanent re-authorization of the Defense Production Act (DPA).
If there is insufficient support for S. 2168, the Administration
would support an extension of the existing DPA for two years
rather than enactment of S. 1379. Such an extension could
include several provisions of S. 2168 that are directly related
to the energy aspects of the current situation in the Middle
East.
The DPA vests the President with the authority to direct
materials and facilities from civilian to Federal use to ensure
adequate industrial production and supply for national security
purposes. Additionally, it authorizes loans, loan guarantees,
purchase guarantees, antitrust protection, and the use of the
National Defense Executive Reserves (NDER). S. 1379, however,
would change the DPA to a statute which undermines antitrust
laws, infringes upon the constitutional authority of the
President, encourages protectionism and establishes unneeded
authorities and unwarranted reporting requirements.
The Administration strongly objects to section 137 of the bill.
This section would create a prior government approval and
antitrust immunity program for a wide range of industry consortia
engaged in joint research, development, and manufacturing
activities. If S. 1379 is presented to the President in a form
that includes section 137, the Attorney General would recommend
that the President seriously consider vetoing the bill.
Moreover, S. 1379 contains provisions which impinge upon the
President's constitutional authority to control diplomatic
initiatives and to maintain the confidentiality of the Executive
branch deliberative process. The Administration objects to the
following sections which infringe upon this authority:
2
-- Section 124, which requires that the Secretary of
Defense lead an interagency team to consult with
foreign governments on limiting the adverse
effects of offsets in defense procurement.
-- Section 125, which requires the Secretary of
Commerce to report on alternative findings or
recommendations submitted to the Department of
Commerce on international negotiations related to
the DPA.
Furthermore, S. 1379 adds unnecessary new authorities or
responsibilities and burdensome, duplicative reporting
requirements to the DPA. Most objectionable are:
-- Section 123, which would establish an unnecessary
revolving fund.
-- Sections 123-126 and 138, which establish.or
amend reporting requirements to Congress on
industrial and technological issues.
-- Section 152 (1), which would repeal the
requirement for paying interest on the net amount
of Federal capital used under sections 302 and
303 of the DPA.
The Administration opposes Title IV, which amends the
International Banking Act and authorizes retaliatory measures
against foreign governments found to be in violation of the
Omnibus Trade and Competitiveness Act. The Administration
consistently has opposed retaliatory measures which could close
U.S. markets.
The Administration strongly supports those provisions which amend
section 708 to enhance the utility of "voluntary agreements" in
responding to serious national emergencies. The Administration
also supports section 141 which clarifies contract priority
authority. This authority would apply to "services" contracts,
such as for standby pipeline repair services for the Strategic
Petroleum Reserve. These provisions, which are based on the
Administration's bill, S. 2168, are potentially relevant to the
U.S. response to the current situation in the Persian Gulf.
Also, in light of the present Persian Gulf crisis, the
Administration urges enactment of those provisions of S. 2168
which provide conflict of interest and antitrust protection for
the NDER. This would facilitate the development and staffing of
an NDER composed of representatives from the petroleum industry,
which most oil companies have declined to support because of the
lack of such protection.
******
E PREQUENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON. D.C. 20503
September 26, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 2039 - Job Training Partnership
Act Amendments of 1990
(Hawkins (D) CA and 4 others)
The Administration supports legislation to make the successful
Job Training Partnership Act (JTPA) a more effective employment
and training program. The Administration has a number of major
concerns with H.R. 2039, as reported by the House Education and
Labor Committee, and recommends that the bill be amended to
address these concerns.
The following are the major concerns with H.R. 2039:
-- The authorization levels are excessive. Authorizations for
adult and youth employment and training programs exceed the
President's FY 1991 Budget request by more than $300
million.
-- The bill does not improve the targeting of resources for
the adult and youth programs. Funds should be
distributed based on a local area's share of the
eligible economically disadvantaged population
instead of the number of unemployed in a State or
locality.
The bill retains the existing separate Summer Youth Program
instead of fully integrating that program into a year-round
youth program.
-- The bill retains the current State education set-aside
instead of replacing it with a new State Linkage and
Coordination program, as proposed by the Administration.
The new program would improve cooperation between JTPA,
education, welfare, and other programs serving the
economically disadvantaged.
-- The bill should include the fiscal management provisions
specifically tailored to the JTPA, as supported by the
Administration.
-- The bill would establish an unnecessary new program of
Federally-subsidized jobs to provide assistance in disaster
areas. In addition, the bill would establish unnecessary
new programs for "nontraditional employment for women" and
for youth offenders.
*******
EXECUTIVE OFFICE OF THE PRESIDENT
STATE OFFICE
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 27, 1990
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 5649 - National Aeronautics and Space Administration
Appropriations Authorizations
(Roe (D) New Jersey and 27 others)
The Administration is pleased that H.R. 5649 authorizes multiyear
appropriations for essential National Aeronautics and Space
Administration (NASA) programs, particularly the President's
Space Exploration Initiative. However, the Administration
opposes enactment of H.R. 5649 unless it is amended as follows:
-- Delete the requirement in Title II for a case-by-case
determination of agency launch needs by the Administrator
of NASA and for reporting of each determination to
Congress. (The overall intent of Title II, however, is
consistent with the National Space Policy's provision on
commercial launch services.)
-- Modify Section 204 (b) to add national security and foreign
policy considerations to the grounds for exceptions from
the launch services purchase requirement.
-- Delete Section 124, which requires the National Space
Council to establish a space Users' Advisory Group. This
would duplicate and conflict with the Vice President's
Space Policy Advisory Board established by Executive Order
No. 12675.
-- Delete the proviso that none of the funds authorized for
FY 1991 for aeronautical research and technology shall be
expended unless at least $119 million is made available
for FY 1991 for the National Aero-Space Plane (NASP)
program. This provision would penalize the entire NASA
aeronautics program if compliance proves impossible.
-- Delete Section 116, and modify Section 102 (13), which
prescribe the details of the NASP program, including
specific goals, agency responsibilities, and funding.
These are more appropriately specified in a NASA-Defense
joint management plan, consistent with the recommendations
of the National Space Council, as approved by the
President. The funding ratios for the two agencies in
Section 116 are contrary to those contained in the Budget.
2
-- Delete Section 117, subsections (b) through (h). The
effect of these subsections would be to require that
necessary facilities which support important government
programs but which may support limited commercial activity
be made available for sale. Disposition of excess Federal
property is determined by the General Services
Administration as required by statute. These provisions
would confuse existing responsibilities and create a new
category of disposable property.
-- Delete Section 114, requiring the National Space Council
to conduct a major Study on International Cooperation in
Planetary Exploration and report to Congress on mission
strategy. Some aspects of this study would be premature
considering the early stage of the Space Exploration
Initiative. The study would also duplicate and conflict
with existing Space Council efforts in international space
cooperation and would adversely affect the workload of the
Space Council, preventing the completion of other
important activities.
-- Delete the set-aside requirements under the Space Research
and Technology and Human Exploration Initiative for
university contracts and grants. The Administration is
committed to strong university involvement in these
programs; however, earmarking a specific percentage for
universities is not an effective way to manage the
available resources for these programs.
-- Delete the language for Space Station Freedom to mandate
the use of solar dynamic power for future growth and to
initiate a flight test of the solar dynamic power program.
Such a test should not be conducted in the absence of a
decision to develop solar dynamics, and should not
preclude other options to provide additional power.
-- Delete Section 110, an objectionable "Buy America"
provision.
-- Delete Section 115. Establishing, statutorily, an Office
of Space Commerce in the Department of Commerce would
restrict the Secretary's flexibility to manage space
programs.
*****
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 28, 1990
(Senate)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
S. 1880 - Cable Television Consumer Protection Act of 1990
(Danforth (R) MO and 15 others)
The Administration strongly opposes reregulation of the cable
television industry. If S. 1880 were presented to the President
in its current form, his senior advisers would recommend a veto.
The Administration opposes S. 1880 because it imposes a new
regime of Federal regulation over the cable industry beyond that
established in the Cable Act of 1984. Specifically, the
Administration opposes provisions that would establish additional
Federal regulation over cable rates. These provisions would
hamper the development of new products and services for cable
subscribers and slow the expansion of cable service to areas not
now served.
The Administration also opposes provisions that restrict the
discretion of cable programmers in distributing their product.
These provisions ignore the reality that exclusive distribution
arrangements are common in the entertainment industry and
encourage the risk-taking needed to develop new programming.
Requiring cable operators to make their programming available to
competing distributors would establish a different standard for
cable than exists for broadcast.
The Administration opposes section 8, which limits the number of
channels on which a cable operator can carry its own programs.
This provision raises most serious constitutional questions.
Section 8 would also require limits on the number of subscribers
a cable operator may serve nationwide. This provision is
objectionable because current antitrust laws are adequate.
Section 15 of S. 1880 would require cable operators to carry the
signals of certain television stations. This would be required
regardless of whether the cable operator believes that the
stations are appropriate for inclusion in its package of
services, and regardless of whether such inclusion reflects the
desires and tastes of cable subscribers. The Administration
believes that "must carry" requirements would raise most serious
constitutional questions under the First Amendment by infringing
upon the editorial discretion exercised by cable operators in
their selection of programming.
The Administration continues to believe that competition, rather
than regulation, creates both the most substantial benefits for
consumers and the greatest opportunities for American industry.
2
Consistent with this principle, the Administration supports
removing barriers to entry by new competitors into the video
services marketplace. Congress should consider removing the
current legislative prohibitions on telephone company entry found
in the 1984 Cable Act as an alternative to instituting a
burdensome and unnecessary regulatory regime.
*******
OFFICE the RESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 28, 1990
Q
(House)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 3139 - Portability of Benefits for Nonappropriated Fund
Employees Act
(Leath (D) TX and 2 others)
The Administration supports enactment of H.R. 3139.
*******
FRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE
OFFICE OF MANAGEMENT AND BUDGET
EXPIRATIVE
WASHINGTON, D.C. 20503
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
(Senate Floor)
September 28, 1990
H.R. 5313 - MILITARY CONSTRUCTION APPROPRIATIONS BILL, FY 1991
(Sponsors: Byrd (D), WV; Sasser (D), TN)
The Administration continues to oppose Congressional action
on appropriations bills in advance of a budget summit agreement.
Such action could unnecessarily and perhaps harmfully complicate
implementation of a final budget resolution that reflects the
agreement. However, inasmuch as the Senate is going to take
action, the Administration will express its views on these bills.
The purpose of this Statement of Administration Policy is to
express views on the FY 1991 Military Construction Appropriations
Bill, as reported by the Senate Appropriations Committee.
The Committee has reduced the funding for requested programs
by $1.1 billion. The Senate is urged to restore the requested
level, including the $210 million cut from the NATO
Infrastructure appropriation request. Funds for the NATO
Infrastructure account are necessary to meet our obligations
under treaties and agreements with our NATO allies. The
Committee has also added funding for programs that were not
requested. Specifically, $296 million was added for national
guard and reserve construction projects. The Senate is urged to
delete the funding for these projects.
The Administration supports the Congressional adoption of
$286 million in requested rescissions and urges the Senate to
adopt the remaining $41 million in rescissions that have been
proposed.
Language added by the Committee to overturn the moratorium
on new military construction projects is unwarranted. The
extension of the moratorium by the Department of Defense was
intended solely to allow time to determine which projects are no
longer required and can be recommended for rescission. The
moratorium will be lifted as soon as those determinations are
made. The Secretary of Defense will consider recommending that
the President veto the bill if it includes language that would
mandate lifting the moratorium.
Sections 113 and 117, concerning reporting requirements on
military exercises and burden-sharing, raise constitutional
concerns regarding the President's role as Commander-in-Chief.
These sections would be treated as advisory if enacted into law.
The Administration urges that these concerns be addressed
during Senate consideration of the bill and that the Senate
approve a Military Construction Appropriations Bill that is
consistent with the Administration's request.
2
FRESIDENT
OFFICE
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
(Senate Floor)
September 28, 1990
H.R. 5313 - MILITARY CONSTRUCTION APPROPRIATIONS BILL, FY 1991
(Sponsors: Byrd (D), WV; Sasser (D), TN)
The Administration continues to oppose Congressional action
on appropriations bills in advance of a budget summit agreement.
Such action could unnecessarily and perhaps harmfully complicate
implementation of a final budget resolution that reflects the
agreement. However, inasmuch as the Senate is going to take
action, the Administration will express its views on these bills.
The purpose of this Statement of Administration Policy is to
express views on the FY 1991 Military Construction Appropriations
Bill, as reported by the Senate Appropriations Committee.
The Committee has reduced the funding for requested programs
by $1.1 billion. The Senate is urged to restore the requested
level, including the $210 million cut from the NATO
Infrastructure appropriation request. Funds for the NATO
Infrastructure account are necessary to meet our obligations
under treaties and agreements with our NATO allies. The
Committee has also added funding for programs that were not
requested. Specifically, $296 million was added for national
guard and reserve construction projects. The Senate is urged to
delete the funding for these projects.
The Administration supports the Congressional adoption of
$286 million in requested rescissions and urges the Senate to
adopt the remaining $41 million in rescissions that have been
proposed.
Language added by the Committee to overturn the moratorium
on new military construction projects is unwarranted. The
extension of the moratorium by the Department of Defense was
intended solely to allow time to determine which projects are no
longer required and can be recommended for rescission. The
moratorium will be lifted as soon as those determinations are
made. The Secretary of Defense will consider recommending that
the President veto the bill if it includes language that would
mandate lifting the moratorium.
Sections 113 and 117, concerning reporting requirements on
military exercises and burden-sharing, raise constitutional
concerns regarding the President's role as Commander-in-Chief.
These sections would be treated as advisory if enacted into law.
The Administration urges that these concerns be addressed
during Senate consideration of the bill and that the Senate
approve a Military Construction Appropriations Bill that is
consistent with the Administration's request.
2