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1975/09/30 - Congressional Opponents of the
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1975/09/30 - Congressional Opponents of the
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The original documents are located in Box 51, folder "1975/09/30 - Congressional
Opponents of the Tobacco Bill" of the James M. Cannon Files at the Gerald R. Ford
Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 51 of the James M. Cannon Files at the Gerald R. Ford Presidential Library
THE WHITE HOUSE
WASHINGTON
September 20, 1975
MEETING WITH CONGRESSIONAL OPPONENTS OF TOBACCO BILL
Tuesday, September 30, 1975
12:00-12:30 p.m. (30 minutes)
The Cabinet Room
From: Max L. Friedersdorf
.6.
I. PURPOSE
To permit opponents of H.R. 9497, the bill increasing
tobacco price supports to present their views to the
President.
II. BACKGROUND, PARTICIPANTS AND PRESS PLAN
A. Background:
1. Both the House and Senate have passed without a recorded
vote, a measure (H.R. 9497) increasing price supports
for tobacco.
2. The President met last week with House Members support-
ing the bill and a number of Senators favoring the leg-
islation could not attend the Presidential meeting due
to Senate business.
3. Senators Brooke, Bellmon, Garn, Hatfield, Javits, Roth
Hugh Scott, Stafford, Percy, Case and Buckley wrote to
the President, uring a veto based on Department of
Agriculture estimates of a $250 million cost over a
5-year period. (See Tab A)
4. Agriculture revised their estimate to $55 million for
the 5-year period. (See Tab B)
5. John Rhodes now recommends signing, based on the $55
million figure and important linkage with the Turkish
Aid vote.
B. Participants: See Tab C
GERALD
-2-
C. Press Plan:
Announce to the Press, White House photographer only.
III. AGENDA See Tab D
IV. TALKING POINTS
1. I am pleased to have the opportunity to discuss the
tobacco bill with members of the House and Senate.
2. There are a number of Senators and Congressmen supporting
the bill, and I met with a delegation of proponents last
week.
3. I have until midnight, Wednesday, October 1, to act.
Before that time I plan to study all the pros and cons
of the legislation before making a decision.
4. Both Secretary Butz and OMB Director Jim Lynn are here
today. I would like to have the Congressmen and
Senators give me their views, and then perhaps Earl and
Jim can express themselves.
1407
ICS IPMNAWA WSH
975 SEP 19 PM 3 54
10964 GOVT NFWASHINGTON DC 203 09-19 324P EDT
PMS THE PRESIDENT
WHITE HOUSE DC
DEAR MR. PRESIDENT:
WE RESPECTFULLY REQUEST THAT YOU VETO H. R. 9497, THE BILL WHICH
WOULD INCREASE TOBACCO PRICE SUPPORTS. THIS BILL, WHICH WAS
RUSHED THROUGH THE SENATE WITHOUT A RECORD VOTE, WOULD COST THE TAX-
PAYER $240 MILLION MORE OVER THE NEXT FIVE YEARS THAN EVEN THE PRESEN
T
TOBACCO PRICE SUPPORT.
IT SETS A PRECEDENT WHICH IS DIRECTLY CONTRARY TO THE POLICY
DIRECTIONS ESTABLISHED BY YOUR ADMINISTRATION. FIRST OF ALL, IT
EXTENDS THE COSTLY FARM PRICE SUPPORT SYSTEM WE HAVE BEEN SEEKING TO
CUT BACK.
SECOND, AND PERHAPS MORE IMPORTANT, IT CREATES A SUBSIDY FOR A
DANGEROUS POLLUTANT AND CARCINOGEN. IT IS A NATIONAL GOAL TO
REDUCE SMOKING AND TO ERADICATE CORONARY AND RESPIRATORY DISEASE AS
WELL AS CANCER.
THEREFORE, IT IS IRRATIONAL AND DANGEROUS TO INCREASE THE ANNUAL
SUBSIDY THE PUBLIC GIVES THE TOBACCO INDUSTRY. LAST YEAR, $962.3
MILLION OF TAX MONEY WAS SPENT TO ERADICATE THE DISEASES TO
WHICH TOBACCO IS A MAJOR CONTRIBUTING FACTOR.
FOR THESE REASONS, WE HOPE YOU WILL SEE FIT TO VETO THE BILL.
WE IN TURN PLEDGE OUR BEST EFFORTS TO SUSTAINING THAT VETO.
SINCERELY
EDWARD W BROOKE
add Senater Cose/Ruckley
HENRY BELLMON
per telephone there fille from
JAKE GARN
MARK 0 HATFIELD
JACOB K JAVITS
WILLIAM V ROTH JR
HUGH SCOTT
ROBERT T STAFFORD
FORD & GERALD LIBRARY
CHARLES H PERCY
NNNN
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
MEMORANDUM FOR THE PRESIDENT
FROM:
JAMES T. LYNN
SUBJECT: Agriculture's Revised Tobacco Estimates
Ag's lowered estimate of the increased costs attributed to
H.R. 9497 result from the following:
1. Later and higher estimates of production for this
year's crop:
Original Estimate
Revised Estimate
(Million Pounds) *
2,061
2,205
2. A change in the assumptions under H.R. 9497. Earlier
the Department assumed that for comparison purposes
production would be the same under both present
and proposed legislation. For the latest estimate
USDA assumes that even tighter planting restrictions
would be imposed, as follows:
Fiscal Year
Original Estimate
Revised Estimate
(Million Pounds)
*
1976
2,061
2,205
1977
2,269
2,060
1978
2,268
2,050
1979
2,235
2,040
1980
2,218
2,040
* Flue-cured and burley only
3. With the reduced production, the amount of surplus and
CCC loan outlays would decline:
Net Outlays
(Million Dollars)
Original Estimate
Revised Estimate
Fiscal
Current
H.R.
Current H.R.
Year
Law
9497
Difference
Law
9497
Difference
1976
39
110
71
319
442
123
TQ
not
computed
105
139
34
1977
60
109,
49
24
-34 -
-58
I
1978
66
99
33
5
- 12
- -17
1979
102
150.
48
-14
-34 -
-20
1980
68
106
38
-25
-31 -
-6
(5 yr. average
(5 yr. average
is $48 mil.)
is $11.2 mil.)
4.
In thinking about the prospect of lowering the acreage/
poundage allotments by the 10%-15% as in the revised
estimates, one should keep in mind
-- there may be some political pressure in the future
against such decrease (although the pressure to
date has all been for such a decrease)
-- the consequent increase in price will further
erode the U.S. position in the world market, and
exports will continue to decline
-- the imposition of further production restrictions
is directly contrary to the Administration's "full
production" policy underlying the Farm Bill veto
earlier this year.
PARTICIPANTS
The President
Secretary Butz
Assistant Secretary Bell
SENATE
Ed Brooke
Henry Bellmon
Jake Garn
Mark Hatfield
Bob Stafford
Jim Buckley
Chuck Percy
HOUSE
Pete Peyser
Al Quie
STAFF
Jack Marsh
Phil Buchen
Bill Seidman
Max Friedersdorf
Alan Greenspan
Jim Lynn
Jim Cannon
Ron Nessen
Dick Cheney
Vern Loen
Bill Kendall
Tom Loeffler
Jack Calkins
REGRETS
The Vice President
Sen. Javits
Sen. Roth
Sen. Hugh Scott
Sen. Case
Don Rumsfeld
Bob Hartmann
AGENDA
12:00-12:05 p.m.
The President opens the meeting and introduces
(5 minutes)
the subject of the tobacco bill.
12:05-12:20 p.m.
The President requests comments from all
(15 minutes)
opponents who wish to be heard.
12:20-12:25 p.m.
The President requests Secretary Butz and OMB
(5 minutes)
Director Lynn to state their views on the
legislation.
12:25-12:30 p.m.
The President sums up the meeting and thanks
(5 minutes)
the Congressional delegation for their
recommendations.
12:30 p.m.
The President concludes the meeting.
,
Tobaco- w/ Rendit 9/30/75
Buts - This
-
can do- -
The yr. w To vom arrage
Promen a cutbork of 15% for
Next w
Have 20% Mis years not
What can w do -
wome
t Amoun whecten is
plut year thores wi
pl 480
2)
Veny few toberro sume depend on
This including
we - of deer yu it,
ww net updy To 'z5
FORD i LIBRARY GERALD
Miu, coops. Peant dam on walntry years
P. Argnents when thing & bater
to- -
Mew up
,F318 stan to Look
insul on
acceple - sura +
/ teach waiter
Include Don't
mentain "full
HENNED
Stork in japper how"
NM
FORD LIBRARY is GERALD
Copy to Paul Leach
THE WHITE HOUSE
red tag
WASHINGTON
September 27, 1975
MEMORANDUM FOR:
JIM CANNON
FROM:
MAX FRIEDERSDORF
m6
SUBJECT:
Tobacco Bill
Jim, as an addendum to my recommendation that the President
sign the tobacco bill, I would further recommend that if
signed, the President announce the new support prices would
be effective for the 1976 crops only. The reason for this
is that the 1975 crops are mostly in by now, and the growers
already paid.
S1
FORD & GERALD LIBRARY
THE WHITE HOUSE
WASHINGTON
September 30, 1975
MEMORANDUM FOR:
JACK MARSH
DONALD RUMSFELD
JIM LYNN
RON NESSEN
FROM:
MAX FRIEDERSDORF in
Jim Cannon asked me to offer some rationalization if the President
signs the tobacco bill and I am passing these thoughts along to you.
is
FORD
GERALD
THE WHITE HOUSE
washington
September 30, 1975
MEMORANDUM FOR:
JIM CANNON
FROM:
MAX FRIEDERSDORF
:6
SUBJECT:
Tobacco Bill
Arguments for a Signing Statement on the Tobacco Bill
Tobacco is one of our major export crops, ranking third or fourth
in fiscal 1975 with a $1.2 billion income from overseas exports.
The program brought in more than $6 billion in local state and federal
taxes during the past fiscal year.
The legislation will not increase tobacco production because USDA
plans to reduce acerage by 10 or 15% in the near future whether it is
signed or not.
But the bill will insure a stable income for several hundred thousand
tobacco growers in at least six major tobacco growing states.
This crop is one of the major reasons for our favorable balance of trade.
The present formula has been in effect since 1956 and the tobacco industry
through mechanization and a changing labor supply has outgrown this
formula established 19 years ago.
For those who oppose the production of that tobacco per se as a health
menace, it should be realized that removal of controls would result
in the production of even more tobacco if the crop was
by allotment.
The major arguments are: 1. Favorable exports, 2. The big revenue
from taxation and the need for updating the 19 year old formula.
Two
80
DERALD
-2-
In addition it can be argued that the program has cost very little
over the years compared to any other crops.
These arguments can be verified with Joe Todd at the USDA and all
figures, of course, should be thoroughly checked for the final draft
of any signing statement.
The other commodities that will be watching action on this bill have
had several updates in their formulas, I am told, in recent years and
we could argue that we are bringing tobacco up to date with other com-
modities to attain equity for the tobacco farmers.
CC: Jack Marsh
Donald Rumsfeld
Jim Lynn
Ron Nessen
RRALD