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Office of the Chief of Staff Files
Hamilton Jordan's Confidential Files
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Energy Legislation
Folder Citation: Collection: Office of the Chief of Staff Files; Series:
Hamilton Jordan's Confidential Files; Folder: Energy Legislation;
Container 34a
To See Complete Finding Aid:
http://www.jimmycarterlibrary.gov/library/findingaids/Chief_of St
aff.pdf
ENERGY CALENDAR
ANTICIPATED
CONGRESSIONAL ACTIONS
WEEKS
CONSERVATION
TAX
PUBLIC OPPORTUNITIES
MEETINGS: GROUPS/PEOPLE
Preliminary informal
Finance Comm-
*President's trip to Michigan,
-Private meeting with
sessions begin be-
ittee staff will
Iowa, Colorado, and California
Senator Long
tween House and Sen-
draft bill to be
ate conferees. Be-
reported out to
*Schlesinger on "Face the Nation"
-Private meeting with
gins Wednesday of
the Senate from
Senator Kennedy
this week.
the Committee.
*Vance on "Meet the Press"
-Private meeting with
-Vice-President Mondale on
Senator Bentsen
morning talk show (s)
-Private meeting with
Week 1
George Meany (ALF-CIO)
10/17-
-Private meeting with
10/23
Doug Fraser (UAW)
-Meeting with leaders of
consumer groups
*Regular leadership
breakfast
*Meeting with House
conferees
Code: An asterik (*) beside an event or meeting means that it is already scheduled while a
dash (-) means that it is recommended for your consideration and approval.
ENERGY CALENDAR
ANTICIPATED
CONGRESSIONAL ACTIONS
WEEKS
CONSERVATION
TAX
PUBLIC OPPORTUNITIES
MEETINGS: GROUPS/PEOPLE
Informal conference
Senate floor de-
*Regular bimonthly news
*Regular meeting with
committee continues
bate on tax meas-
conference
newspaper editors
to work on portions
ures begins - poss-
of bill on which
ible final action
-Vice-President on major
-Private meetings with key
there appears to be
on tax portions
Sunday program
Senators continue
some basis of agree-
this week.
ment. No final de-
-Cabinet activities in full
-Vice-President continues to
cisions will be
swing
meet with key Senators
made until tax bill
is under active
-Schlesinger on major morn-
-Schlesinger holds "leader-
discussion by other
ing news program
ship briefings" at White
conferees.
House for business leaders,
Week 2
black and Hispanic leaders,
environmentalists and labor
10/24 -
leaders. Possible drop in
10/30
by President or Vice-Presi-
dent
*Regular Congressional lead-
ership breakfast
*Possible meeting with Senate
conferees
Code: An asterik (*) beside an event or meeting means that it is already scheduled while a
dash (-) means that it is recommended for your consideration and approval.
ENERGY CALENDAR
ANTICIPATED
CONGRESSIONAL ACTIONS
WEEKS
CONSERVATION
TAX
PUBLIC OPPORTUNITIES
MEETINGS: GROUPS/PEOPLE
Continued informal
If tax bill was
-Address to nation by the
*Regional editors briefing
conference on con-
not passed by
President, possibly on the
servation issues
the Senate in
day that the conference
*Congressional leadership
which can be most
the previous
committee begins its work**
breakfast
easily resolved.
week, final act-
Once conference on
ion this week.
-Cabinet activities continue
-Private meetings with
tax measures begins,
Conference
Senators continue
this conference will
committee begins
-If necessary, Vice-President
begin to work on
work on tax
makes trip into targeted
-Private meetings between
major problems and
portions of
states on behalf of energy
Vice-President and Senators
differences - in-
energy plan.
plan
continue
cluding dererulation.
Chance that at
least several
days will be
Week 3
taken getting
conference
10/31 -
committee's
11/6
work organized.
**It is the collective judgment of the people that we have talked with that we should save our "Address
to the Nation" until the formal conference committee begins. This will have a public effect and will
also create some sense of urgency among the members of the conference committee and among their col-
leagues who will be sitting around waiting for them to act. This should result in tremendous peer
pressurs for them to "do something and do it fast".
ENERGY CALENDAR
ANTICIPATED
CONGRESSIONAL ACTIONS
WEEKS
CONSERVATION
TAX
PUBLIC OPPORTUNITIES
MEETINGS: GROUPS/PEOPLE
Both "tax" and "conservation"
*Regular Presidential news
-Private meetings with
conferences will be going on
conference
President and individual
simultaneously. Chance that
Senators
conference committees could
-Cabinet activities continue
finish their work this week.
-Private meetings with
If finished early in the week,
Vice-President and indi-
there could be critical votes
viduals Senators
in both houses this same week.
If finished late in the week,
-Private meetings with
debate and/or filibuster could
Schlesinger and individual
take us into next week. Also,
Senators
Week 4 **
there is the possibility of a
deadlocked conference.
11/7 -
11/13
**It is almost impossible to anticipate and/or schedule this far in advance. We will ask Tim to
keep schedule very loose, anticipating a lot of private meetings with individual members of
Congress as Conference continues with chance of final action in each house on energy bill.
PERSONAL AND CONF IDENTIAL
TO:
PRESIDENT CARTER AND VICE-PRESIDENT MONDALE
FROM:
HAMILTON JORDAN
H.J.
RE:
POLITICAL STRATEGY FOR PASSAGE OF ENERGY BILL
It was suggested by Stu and Jim Schlesinger in a memo-
randum to you that I be responsible for coordinating
a "crash effort" to pass our energy legislation through
the Congress. In this memorandum, I will attempt to do
several things.
First, I have attempted to state the political premise
for our efforts. Secondly, I have tried to define realis-
tic objectives for our effort. Thirdly, I have attempted
to present a calendar which reconciles our objectives,
activities and resources with what Frank Moore thinks
will be the likely timetable for Congressional action.
"DETERMINED TO BE AN ADMINISTRATIVE MARKING
CANCELLED PER E.O. 12356, SEC. 1.3 AND
ARCHIVIST'S MEMO OF MARCH 16, 1983"
Bob Strauss and Jack Watson will be jointly responsible
for the effective involvement and use of the Cabinet
members.
Les Goldman will represent Dr. Schlesinger and the Depart-
ment of Energy in the meetings and decisions of the Task
Force.
Dick Moe will represent the Vice-President in the meetings
and decisions of the Task Force.
Eliot Cutler will represent OMB in the meetings and de-
cisions of the Task Force.
A "Task Force Daily Report" will be prepared each day and
distributed to the principals. It will summarize the
progress and problems of that day and report on any decisions
and/or recommendations of the Task Force.
the master list of Senators for private meetings with
the President, Vice-President and Schlesinger; and also
for arranging special emergency meetings with conferees
and others with the President. All political decisions
should be cleared by Frank's staff, and all major public
statements on the energy bill should be reviewed by Frank's
staff in advance for their political input.
Stu Eizenstat and/or Kitty Schirmer will represent the
Domestic Council in the meetings of the Task Force and in
all decisions made by the group.
Jody Powell will represent the press office. He will
be responsible for developing a coordinated media plan
involving the President, the Vice-President, Dr. Schlesinger
and the members of the Cabinet. Also, Jody's office will
furnish suggested speech language and information to the
persons who will be publicly representing the Administration.
All media appearances by Administration spokespersons should
be cleared in advance by Powell.
STAFF ASSIGNMENTS AND COORDINATION
To implement the plan presented here and coordinate our
activities during the weeks ahead, it will be necessary to
create a Department of Energy-White House Task Force which
will meet every day to review progress and problems. This
group will include the following persons and their areas
of focus:
Hamilton Jordan will be responsible for convening the
daily meeting of the Task Force and for overall coordination
and execution of the plan. Frank Moore will be responsible
for all political decisions as relates to Congress.
Frank Moore will be the principal contact with the Congress.
Frank and his office will be responsible for drawing up
Ask Cabinet members to develop "media plan" for support
of Energy Bill and also conduct "political inventory"
for our use at the White House.
Approve
Disapprove
Ask Bob Strauss to serve as "cabinet whip" in this effort.
Approve
Disapprove
3.
Tell them that you will expect a report at
the next meeting on what they have each
done to help you pass the energy bill.
Because it is difficult to get the Cabinet together and
the matters that you are discussing are so sensitive, I
would suggest that you ask to meet with the Cabinet members
alone tomorrow for a few minutes - no White House staff
or anyone present. I would present these ideas and ask
them to all stay after the regular Cabinet meeting for
15-20 minutes to talk with Strauss, Schlesinger, Jody
and Frank about what they can do to help us pass our
energy plan.
In summary, I am suggesting that you:
Make a strong private pitch to the Cabinet tomorrow.
Approve
Disapprove
member should be encouraged to discern any special impact
the energy crisis will have on its own constituent groups
and users and incorporate that in all public statements.
Second, each Cabinet officer should be encouraged to
conduct a "political inventory" of their relationships with
members of the Senate. Special attention should be paid
to personal friends they have in the Senate as well as
pending projects and programs which are of interest to
individual Senators. This should be done quietly and
reported back to us as soon as possible.
To accomplish these steps and involve the Cabinet members
in this effort in a meaningful way, the following things
should be done:
1. Make a strong pitch at the Cabinet meeting
Monday.
2. Ask Bob Strauss to be the "Cabinet Whip" in
this effort. Tell the Cabinet that Bob Strauss
will be working directly with them and reporting
to you regularly on the activities of the Cabinet
members. Ask them to cooperate with all of
his requests. Jack Watson should work closely
with Bob in this effort.
CABINET ACTIVITIES
It is important that the Cabinet members understand the
political stake they each have in the passage of our energy
legislation. I would strongly recommend that you outline
to them at the Cabinet meeting Monday our plans for the
next several weeks and the high significance that you
attach to the passage of the energy legislation.
It is also important that they help us in this fight
over the next few weeks in several ways.
First, they should incorporate in all of their public
statements a strong pitch for our energy bill. To accom-
plish this and insure that we are all using the same in-
formation and themes, Jody's office will be responsible for
providing them with standard information that can be tail-
ored to fit each department and secretary. Each cabinet
Development of Media Plan for Secretary Schlesinger.
Working in coordination with Jody's office, Secretary
Schlesinger will develop a media plan that will be com-
patible with the President's public appearances and state-
ments and with the Vice-President's activities. This
will include appearances on major morning talk shows as
well as a possible appearance on a Sunday news program.
This will be coordinated with Jody's office.
Approve of concept. Will ask Schlesinger
to develop plan with Jody.
Disapprove/Modify.
Briefings for Leadership Groups. Working closely with
Frank Moore and Hamilton Jordan, Secretary Schlesinger
will arrange to brief the leadership of several key groups
of people on the need for the Congress to pass our energy
plan. Groups to be briefed include: business leaders,
environmentalists, minority leadership, labor leaders and
consumer groups. These briefings will begin immediately.
Approve of plan. Will ask Schlesinger
to work with Moore and Jordan.
Disapprove/Modify.
ACTIVITIES OF THE SECRETARY OF ENERGY
Obviously, Jim Schlesinger should play a central and
key role in this effort to mobilize public and political
support for our energy plan. He can make a contribution
in a number of areas. They include:
Private Meetings with Senators. Working with Frank
Moore, Jim should develop a list of key Senators that
he will agree to meet with personally over the next
several weeks. This list should be prioritized and
reconciled with the list of Senators that the President
and Vice-President will be seeing.
Approve of concept. Will ask Jim to
meet with Frank Moore to develop working
list of Senators to see.
Disapprove/Modify.
Development of a Vice-Presidential Media Plan. Working
in coordination with Jody's office, the Vice-President
will develop a media plan that will be compatible with
the President's own schedule and public appearances and
statements. This will include possible appearances on
major morning talk shows as well as an appearance on a
Sunday news program. This will be coordinated with
Jody's office.
Approve of concept. Will ask the Vice-
President to develop plan with Jody.
Disapprove/Modify.
VICE-PRESIDENTIAL ACTIVITIES
It is important that the Vice-President take a visible
and active role in this effort.
Private Meetings with Senators. Working with Frank
Moore and Jim Schlesinger, the Vice-President should
develop a list of individual Senators that he will agree
to meet with personally on the next several weeks. This
list should be prioritized and reconciled with the list
of Senators that the President and Schlesinger will be
seeing.
Approve of concept. Will ask the Vice-
President to develop working list with the
help of Frank Moore's office.
Disapprove/Modify.
Time Summary for Week 1
I have asked Tim Kraft to keep your schedule very
flexible and loose for the next several weeks. He has
built in a lot of time anticipating the necessity for a
lot of private meetings with Senators and groups.
If you approve the meetings we suggested for this
first week, it would require the following amounts of
time:
Russell Long Meeting
1 hour
Ted Kennedy Meeting
.5 hour
Lloyd Bentsen Meeting
.5 hour
George Meaney Meeting
.5 hour
Doug Fraser Meeting
.5 hour
Consumer Leaders Meeting
.5 hour
3.5 hours
Consequently, it would add 3.5 hours to this week's
schedule for you to do all of these meetings that we
have recommended. Your regular Congressional leadership
breakfast and the meeting with House conferees is already
a part of your approved schedule.
2. Meeting with Doug Fraser. The UAW continues to
have one of the best and most professional lobby-
ing efforts on the Hill. And despite our differ-
ences on specific issues that affect the auto-
mobile industry, we have a good continuing relat-
ionship with them and a mutual need to work to-
gether.
I don't know if you have ever met Doug Fraser
privately or asked him to help you, but believe
that they would like to help us on our energy
plan aside from our differences on specific issues.
I believe that a meeting with you would be pro-
ductive.
Approve meeting with Fraser.
Disapprove meeting with Fraser.
Other
3. Meeting with consumer leaders. We believe that
a briefing by Schlesinger followed by a short
meeting with you might neutralize the opposition
of most consumer groups to our energy plan. Their
opposition is not enlightened and is obviously
short-sighted. I believe that this could be effect-
ively pointed out to them by you. Also, you could
point out the quality of your appointments to them
as well as your support for the CPA and other meas-
ures that are important to them. I believe that
they would respond well to your personal request.
Approve meeting with consumer leaders.
Disapprove meeting with consumer leaders.
Other
Meetings with key groups and leaders. It is politically
difficult for a Senator to support legislation that lacks
public understanding and support and is also opposed by
business, labor and consumer groups.
We can anticipate trouble with some liberal Senators in
the Conference Committee and certainly on the floor
with the final bill. This same group tells our people
that, "nobody is for this bill - labor and the consumers
are against it as well as the oil industry".
It is important that we take steps to at least neutralize
and hopefully convert consumer groups and labor. To
accomplish this, I recommend the following meetings to
you:
1. Meeting with George Meaney. With the recent agree-
ment on minimum wage and the House passage of the
labor law reform package, our working relations with
the labor movement generally is good. At your re-
quest, the AFL-CIO leadership endorsed the Panama
treaties and they have been generally appreciative
of our help on labor law reform.
I believe a personal request from you to Mr. Meaney
would have a great impact and could result in their
support of our energy plan. This can only be
accomplished by your meeting with him privately and
making such a request.
Approve of Meaney meeting.
Disapprove of Meaney meeting.
Other
PRESIDENTIAL ACTIVITIES
Meeting with Russell Long. Frank Moore recommends that
you meet with Russell Long alone on Monday afternoon
(10/17) to discuss our energy bill. Frank believes that
it is important that you have a personal understanding of
Long's own attitude, his plans and strategy. Also, you
need to reinforce with him your strong desire to see the
Congress produce an energy bill this year. In the last
several days, he has told several people that there, "just
might not be an energy bill this year". He needs to know
from you how strongly you feel about it.
Approve meeting Monday afternoon with Long.
Disapprove meeting with Long.
Other
Meeting with Ted Kennedy. We are continuing to have
trouble with liberal Democrats in the Senate. This is
going to be a problem for us in the Conference Committee
and also on the floor when the Committee reports a bill
out. Frank Moore recommends that you meet with Kennedy
and try to get his active help and support for our energy
bill and our legislative strategy. Kennedy is under-
standably skeptical of Russell Long's motives. We will
need his active help if we are to have the support of
Senate liberals for the final bill.
Approve meeting with Kennedy.
Disapprove meeting with Kennedy.
Other
Meeting with Senator Bentsen. Bentsen, as the leader
of the deregulation fight and as a Senator from the biggest
oil producing state, will be a key person in both the
Conference Committee and on the Senate floor when the bill
returns from conference. Because of the leadership role
he has taken in fighting us and protecting the oil inter-
ests, Frank Moore reports that he is anxious to cooperate
with us on the final shape of the bill. He would like to
balance the image he has developed of being a friend of
the oil industry by helping us get an energy bill. Frank
and his staff think it is important that we begin a dia-
logue with him.
Approve meeting with Bentsen.
Disapprove meeting with Bentsen.
Other
find my suggested mechanism for the overall coordinat-
ion of these activities. Your reaction to these spec-
ific suggestions is needed as we will have to begin to
schedule them right away.
MAJOR ACTIVITIES AND POLITICAL COORDINATION
The "Energy Calendar" contained many specific
activities and events which have not yet been approved
or scheduled. For that reason, I thought it would be
helpful to outline my recommendations for each of
the following person (s) :
-President
-Vice-President
-Secretary of Energy
-Cabinet members
Also, at the conclusion of these summaries you will
ENERGY BILL CALENDAR
Working closely with Frank Moore and his staff, I have
developed an "Energy Calendar" which attempts to rec-
oncile the likely timetable for Congressional action
with our own public statments and related activities.
The activities which are scheduled and recommended
on this "calendar" are described and justified in the
section which follows. We obviously have some flexi-
bility.
OBJECTIVES
Although we have vast political resources available
to us, we have a limited period of time in which to act.
Consequently, the challenge is to define realistic ob-
jectives which can be accomplished in a short period of
time which will result in positive Congressional action
on our energy legislation. These objectives are:
1. To refocus public attention on the energy crisis.
From all accounts, the sense of urgency which
was created in the country when our energy pro-
posal was announced faded with the warm Summer
weather. We cannot create an atmosphere of
sacrifice that is politically meaningful if
the American people persist in thinking the
crisis is not real.
2. To report that since your original "Fireside
Chat", things have gotten worse instead of
better. This should make our entire effort
more creditable and possibly restore some of
the sense of urgency which was lost over the
Summer months.
3. To create a public understanding of the fact
that we have the mechanism now (DOE) to deal
with the energy crisis but do not have the policy
because of the Senate.
4. To create a public and political atmosphere
that will make it difficult for the Conference
Committee and the Senate to do anything that would
substantially weaken the bill passed by the House.
5. To reinforce the position of the House and
the House conferees through our public state-
ments and activities.
THE PREMISE FOR OUR EFFORTS
It should be recognized by all involved that the
news media and the American people are going to judge
Jimmy Carter's first year as President based on his
ability to get a meaningful energy bill through the Con-
gress.
While making such a judgment based on an exclusive
criteria may seem unfair, we should recognize that this
is, in fact, the case. If a meaningful bill is passed
by the Congress, it will be said that Carter had a
very good first year. If we fail to get a good bill
through, successes in other areas will go unnoticed and
unappreciated by the news media and the American people.
Therefore, the consequences are great and demand a
total effort on the part of this Administration to
see that a meaningful energy bill is passed by the
Congress. If we succeed, we will begin 1978 with con-
siderable political momentum in the Congress. If we
fail, we will be in a weakened position as we under-
take to pass the Panama Canal treaty, welfare reform
legislation and other political priorities of this
Administration.
Fourthly, in accordance with the timetable, I have
developed a plan for realizing our objectives. And
finally, I have suggested a mechanism for the coordi-
nation and execution of this plan and defined the staff
responsibilities.
Your immediate reaction and comments are needed for
us to proceed.
done
MEMORA. DUM
THE WHITE HOUSE
WASHINGTON
M2. PRESIDENT: If You CAN
MEMORANDUM TC THE PRESIDENT
MANE THESE CALLS A40 ACTIVATE
THESE PEOPLE WHO ARE INSUTRAL
FROM:
HAMILTON JORDAN H.J.
OR SUPPORTIVE. Ir Will GREATLY
MAGNIFY OUR LOBBYING EFFORD.
DATE:
SEPTEMBER 1, 1978
THANKS.
SUBJECT:
NATURAL GAS TELEPHONE CALLS
H.9.
Tuesday I recommend
This is in liev of meeting
I recommend that you make the following telephone calls to
persons who can be helpful on the natural gas vote:
-David Rockefeller, Chairman of the Board, Chase Manhattan
Bank. Although Chase has not officially taken a position
on the natural gas compromise, they are perceived by the
Exergy
Senate as being opposed to the bill. A mid-level officer
Chief
of the bank sent a letter to the Business Roundtable which
doubted the impact of the natural gas bill on inflation and
to meet
the decline of the dollar; this letter has been sent by our
opponents to every Senator, and it is being used effectively
to counter Bill Miller's arguments in favor of the legisla-
tion.
Willchese E report
Willard Butcher, President of Chase, attended the luncheon
on Wednesday with Strauss, Schlesinger, and Miller; and a
group of Chase executives is spending three hours at the
Department of Energy this afternoon to get further informa-
to
tion on the legislation. At the present time, Chase maintains
that it has no position; you should urge Rockefeller instead
to move aggressively to support the legislation and to counter will
the impression that Chase is currently working against us.
also Bill Miller done
do
Robert Wingerter, Chairman, Libby-Owens-Ford Company.
Mr. Wingerter attended the Wednesday afternoon briefing by
Strauss, Schlesinger, and Miller for glass, textile and
paper companies. Although the glass industry had been
Statessment- of
actively working against the legislation before this meeting,
they were genuinely impressed by the presentation, and are
now reconsidering their position.
Mr. Wingerter is also reconsidering his position, but he is
the most "hard-line" of the glass company executives at the
want
meeting. If he decides to support the legislation, we will
help
be assured of the active help of the glass industry.
The glass company officials have some concerns about the
not encouraging
legislation which might be possible to satisfy with
colloquies on the floor during the debate. You should thank
Mr. Wingerter for approaching this subject with an open mind,
assure him that Secretary Schlesinger will work with the
industry to clarify any matters which can be addressed at this
late date, and urge that he consider actively supporting
our position. The glass company officials were particularly
impressed with the argument that a better bill is highly
unlikely in the foreseeable future.
William A. Klopman, Chairman, Burlington Industries.
Mr. Klopman also attended the Wednesday afternoon briefing.
100%
Like the other members of the textile industry, his formal
position before the meeting was opposition to the bill because
support
it does not deregulate gas rapidly enough. Our follow-up
phone calls, however, indicate that we made a strong impression
on the textile executives, and that there is now a chance
for their support. Klopman is particularly important because
call
of Burlington's position in the industry.
Hallings
You should thank Klopman for attending the briefing,
acknowledge that the bill is not perfect but that it is
the only realistic possibility in the foreseeable future,
and ask for Mr. Klopman's active support.
name +
George Stinson, Chairman, National Steel. Stinson attended
the briefing for steel executives a week ago, and has privately
will
told Bob Strauss that he will help. You should thank Stinson
for his offer to help, and ask him to give specific attention
there
Senators Heinz and Schweiker.
+
Irving Shapiro. DuPont's management generally feels that this
bill will hurt their company far more than it would help.
Nevertheless, Shapiro has refused to take a position, largely
because of his personal relationship with you. Asyou know,
done
he is no longer President of the Business Roundtable.
In the last few days, Irving has told Strauss that he is
privately willing to help where he can, and he has, in fact,
called Joe Biden. Although the bill will probably have an
willing
adverse affect on his company, he believes it should nevertheless
be passed for the good of the country. You should thank him
thelp
for his help, and urge him to do as much as he can with other
influential chief executives around the country.
Robert O. Anderson, Chairman, Atlantic Richfield Company.
concern
ARCO is going all out to help, and Thornton Bradshaw, ARCO's
President, has taken a highly visible position in support.
You should thank Mr. Anderson and acknowledge Mr. Bradshaw's
re
help.
Attached for your information is an information sheet
put out by ARCO urging support of the natural gas compromise.
C.
MARKING BY
DETERMINED TO BE BB AN ADMINISTRATIVE
DATE 2-9-83
CONFIDENTIAL
October 18, 1977
TO:
PRESIDENT CARTER
VICE-PRESIDENT MONDALE
SECRETARY SCHLESINGER
FROM:
HAMILTON JORDAN H.D.
RE:
DAILY REPORT FROM ENERGY TASK FORCE
First daily report. Starting today, the joint White House-
Department of Energy Task Force will provide an early even-
ing report of the day's major events and activities. Also,
we will report scheduled events and the actions and suggest-
ions of the Energy Task Force.
President meets with members of Congress on energy. The
President had an hour meeting Monday afternoon with Senator
Russell Long. He had private meetings Tuesday with Congress-
man Lud Ashley and Senators Ribicoff and Bentsen. He felt
all the meetings were positive and productive.
Scheduled meetings with Senators. Meetings are scheduled
this week with Senator Kennedy and Senator Muskie.
Labor meeting scheduled. Mr. Meany was scheduled to meet
with the President on Wednesday on our energy bill. He can-
celled late in the afternoon today because of an illness.
We decided that it was better to proceed and meet with Lane
Kirkland tomorrow in place of Mr. Meany than to risk waiting
several days or a week until Mr. Meany is well. There is
a good chance that the subject of U.S. participation in the
ILO will come up in response to our request that they help
us on our energy bill.
-2
Consumer meeting arranged. Kitty Schirmer of the
Domestic Council staff is arranging a meeting of consumer
leaders for Thursday. As opposed to trying to bring in
a large group, we have opted for bringing in a small
group of the top leaders for a briefing by Schlesinger
followed by a meeting with the President.
Follow-up meeting with Cabinet. The Vice-President
will chair a meeting of the Cabinet Thursday for the pur-
pose of making plans for the members to help with our bill
and also to receive a briefing from Dr. Schlesinger. Bob
Strauss and Jack Watson will present specific things for
the Cabinet to do. A sample speech will be distributed,
and Frank Moore will make assignments of Senators for each
Cabinet officer to contact based on the lists submitted to
us by each member of the Cabinet.
Vice-President on TODAY SHOW. The Vice-President will
appear on the TODAY SHOW Friday of this week to talk
about the energy bill.
Comments of Senator Culver. Dan Tate had lunch with Sen-
ator John Culver today, and the Senator indicated that he
would not challenge the Finance Committee's bill on the
floor of the Senate. Also, that he did not know of any
Senator who would or planned to take that action.
Briefing papers and model speech near completion. Domestic
Council staff and Jim Fallows are expected to complete by
Wednesday the standard speech material to be used by Admin-
istration spokespersons as well as briefing paper on our
energy program.
Strauss meeting with Long. Bob Strauss reports that he
had an hour long meeting with Senator Long today and that
Long was "very pleased" with his meeting Monday with the
President. Long told Strauss and has told others that he
would not sign his name to a conference report that the
President had not approved.
-3
Frank Moore and DOE report on initial conference com-
mittee meeting. Chairman Staggers elected Chairman of
Conference Committee. The first session started with
what was described as a "good feeling". Senator John-
ston made the point that "we are all going to have to
compromise, and the important thing.is to get this coun-
try an energy bill". Utility insulation was the only
issue discussed today.
Schedule for President to remain flexible. Tim Kraft
has made a special effort to keep the President's sched-
ule loose for the next few weeks to accomodate the de-
mands on his time we anticipate from Frank Moore for
telephone calls and private meetings with Congressmen.
THE WHITE HOUSE
WASHINGTON
October 14, 1977
MEMORANDUM FOR:
THE SECRETARY OF ENERGY
JAMES SCHLESINGER
HAMILTON JORDAN
W
JODY POWELL
FRANK MOORE
JACK WATSON
FROM:
STU EIZENSTAT
SUBJECT:
Strategy for the Energy Legislation
Attached is a copy of the approved memorandum
on strategy for the energy legislation. I
understand Ham is drafting a more detailed
strategy.
It appears that the President wants a
"review memo" regarding Congressional
strategy as noted on page 3 of the memo.
CC: Tim Kraft
Ham-
Con of trol This & word
DISTRIBUTED: 4 COPIES ARE P,VP, tribution
MR. PRESIDENT-
C
AND FRANK MOORE. ILL
BE MORE CAREFUL ON THE
WORDING.
-ND.
October 19, 1977
CONFIDENTIAL
DETERMINED TO BE BB AN ADMINISTRATIVE DATE 2-9-83
MARKING BY
TO:
PRESIDENT CARTER
VICE-PRESIDENT MONDALE
SECRETARY SCHLESINGER
FROM:
HAMILTON JORDAN AND ENERGY TASK FORCE
H.G.
Report on Senate Strategy. Dan Tate reports that the
Senate leadership has contacted all the "liberal" members
and they expect no major problems from this group of Sen-
ators in carrying the Finance Committee bill straight to
the Conference without a long delay. It still looks, how-
ever, like it will be late next week before the Senate is
able to vote on the Finance Committee bill. This makes
our initial projected schedule valid - with the Conference
Committee begining its serious work on the bill the first
week in November.
Frank Moore's office reports good reaction to President's
statement about cancelling his world trip. This was helpful
is two ways. First, it was a clear indication of the high
priority that he places on getting an energy bill this
year. Secondly, it made it clear that Carter was not going
to be in such a hurry to leave the country that he would
accept a mediocre bill.
Conference committee work today. The conferees settled
some minor issues today which had been worked out by the
staff. They are at an impasse on some of the major utility/
conservation issues which they hope to resolve tomorrow.
Conference Committee schedule. The Committee will not
be meeting on Friday. They will reconvene on Monday and
take up the gas-guzzler.
Briefing paper and speech material ready for Cabinet and
Administration spokespersons. Final drafts signed-off
by OMB, DOE and Domestic Council. These materials will
be distributed Thursday morning at the special Cabinet
meeting which will be convened by the Vice-President and
Bob Strauss.
Labor indicates support. In a meeting with the President
today, Lane Kirkland indicated to the President that the
AFL-CIO would support the final bill which is reported out
by the Conference Committee. Landon Butler is going to
arrange a meeting between Frank Moore's office and the
labor leadership so we can nail down their support and
coordinate our lobbying effort.
Congressional meetings good. Frank Moore reports that the
President's meetings today with the House conferees and
Senator Muskie went well.
Metzenbaum and Abourezk meeting set for Thursday. Frank
Moore reports that he has a meeting arranged for the
President with Metzenbaum and Abourezk. There will be
tremendous press interest in this meeting and everyone
stresses that the President be careful not to say any-
thing that will allow them to say that we "apologized"
for our role in cutting off the filibuster. This would
imply that we were somehow involved despite the fact
and the claim that we were not.
Tate to survey Senate attitudes. It was agreed that
Dan Tate would quietly survey all Democratic Senators
to see what amendments they would offer to the Finance
Committee's report so that we can make early decisions
about our strategy and position on these amendments.
&
THE WHITE HOUSE
WASHINGTON
Mr. President
Please see Ham's
note
-- SSC
\ITH
"
THE SECRETARY OF HEALTH. EDUCATION. AND WELFARE
IMPARTMENT
AND WITE
WASHINGTON. D. C.20201
October 25, 1977
MEMORANDUM FOR THE PRESIDENT
FROM JOE CALIFAN our
SUBJECT: Remark on Energy in Los Angeles
My recent remarks on your energy plan -- and the
adverse impact of the Senate plan on health, education
and welfare -- indicate that there is significant media
interest in the Cabinet's campaign for the Administration's
legislation.
A five-minute statement preceding a press conference
at Los Angeles' University of Judaism stimulated the
following press response:
Radio. Thirteen reports were broadcast on
the seven leading California stations that
in turn have local feeds, including two all
news stations that broadcast throughout the
Friday afternoon rush hour. Reports were also
broadcast nationwide on both ABC and CBS
network radio news.
TV. Reports were broadcast on six local
Los Angeles television news shows, including
the affiliates of the major networks. There
was also a story on the ABC evening network
news.
Print. Both UPI and AP put stories out.
Several local papers, most notably the L.A.
Herald Examiner and the Santa Monica Clarion,
published accounts. And the New York Times
and Time both had references to the remarks.
CC: Hamilton Jordan
Jody Powell
Robert Strauss
Encourage kneywork- Ham- cabinet good Don't
to
MARKING BY
ENTERMINED TO BE B15 AN DMINISTRATIVE
DATE 2-9-83
October 25, 1977
sty off-
CONF IDENTIAL
TO:
PRESIDENT CARTER
VICE-PRESIDENT MONDALE
SECRETARY SCHLESINGER
FROM:
HAMILTON JORDAN AND ENERGY TASK FORCE
RE:
DAILY REPORT
Senate Action. Today, on the floor of the Senate,
Senator Long struck from the Finance Committee bill all
provisions that appeared to encroach on the perogatives
of Senator Jackson's committee and Senator Proxmire's
committee. Long intends to offer a floor substitute
which will reinstate the provisions he struck. This
will allow him to have the same bill if he succeeds
without being vulnerable to the charge that he has over-
stepped the perdgatives of his committee.
Metzenbaum Flap. After getting different signals from
White House and DOE staff people, Metzenbaum indicated
that he might cause trouble. After being assured by
Frank Moore's staff that we would not oppose an amend-
ment he plans to introduce to the NEP on the gas guz-
zler, Senator Metzenbaum heard from a DOE staff person
that we would oppose his amendment. Bob Thompson has
a meeting with the Senator tomorrow morning to smooth
things over. This points up the continuing need we
have to be consistent in our communications with the
members of the Congress.
Jackson-Bellmon-Muskie substitute. Jackson is draft-
ing overnight, and will probably introduce tomorrow,
a substitute for the Finance Committee bill. It will,
according to Jackson, reduce the price tag for tax
credits from $40 billion to $6 billion, and strips
away a lot of the ridiculous aspects of the "Long bill".
Long thinks he has the votes to table it. The danger is
that there might be enough votes to pass the Jackson
substitute (Republicans joining liberal/moderate Demo-
crats), but not enough votes to then get the bill to
conference. Dan Tate says that this is a "real pos-
sibility". Jackson's bill would take away all of the
"sweeteners".
As
there
only a small group in the
Senate who want an energy bill at any cost, the absence
of these "sweeteners" could cost votes on getting the
bill to conference. Frank Moore's staff is closely
watching these developments.
Strauss memo to Cabinet. The Strauss memo which is
attached shows that Cabinet activities are in full swing
and are producing good results. We are already getting
back good reports from all areas of the country on
statements and speeches the Cabinet members have made.
Meeting with House liberals. Frank Moore has arranged
for a meeting Wednesday for the President and House
liberals who are concerned about the impact of the NEP
on consumers. The group that is coming is inclined to
support us and try to help actively. Frank Moore says
they are looking for "ammunition" to help us.
AFL-CIO statement forthcoming. Landon Butler met today
with Lane Kirkland and the AFL-CIO leadership. A public
statement of support for the NEP is forthcoming - may
be released Wednesday.
DETERMINED TO BE AN ADMINISTRATIVE
MARKING BY
BB
DATE
2-9-83
CONFIDENTIAL
October 26, 1977
TO:
PRESIDENT CARTER
VICE-PRESIDENT MONDALE
SECRETARY SCHLESINGER
H.D.
FROM:
HAMILTON JORDAN AND THE ENERGY TASK FORCE
RE:
DAILY ENERGY REPORT
Progress in conference committee on conservation
measures. Some progress was made today on the conser-
vation sections of the bill. Several positive votes
and a negative vote on the federal van-pooling provis-
ion of the bill.
Problem with Metzenbaum worked out. Bob Thompson met
with Senator Metzenbaum this morning and resolved the
differences that surfaced yesterday.
Major votes on conservation measures expected tomorrow.
Several of the major issues will be addressed by the
conference committee tomorrow and DOE thinks that they
might even complete action on conservation portion of
the bill tomorrow.
Vice-President active in support of energy plan. The
Vice-President will be campaigning tomorrow in Buffalo
and will be talking about energy. Also, he will be on
"Meet the Press" Sunday and the main scheduled topic
will be energy - a special one hour program.
Good meeting with House liberals. Frank Moore reports
that the President's meeting with House liberals was
very positive and will be helpful.
Energy statement being prepared by Domestic Council
for possible use at press conference tomorrow. Stu
is preparing a statement that he hopes you will use for
an opener at your press conference tomorrow.
Senate activities and strategy. Jackson dropped his
idea of a substitute for the Finance Committee bill as
he had only about 25 votes. Instead, Jackson will pro-
pose tomorrow a floor amendment to strike the section
of the bill containing the financial incentives for the
oil industry. If Jackson's amendment passes, both the
oil industry and Senator Long will lose interest in get-
ting an energy bill this year. Both Long and Jackson
are doing some posturing for this showdown. Long says
that he will "give up" on the energy bill if this amend-
ment is passed. Jackson says that if he loses he will
move to recommit the bill to the Finance Committee.
Dan Tate reports that Long should win, but that the vote
is getting close. Also, Dan raises the question as to
whether or not the Administration should be able to lobby
on the motion to recommit the bill (if it should come)
as it will determine whether or not we get a bill to
conference and consequently will determine whether or
not there is a chance for an energy bill this session.
THE SPECIAL REPRESENTATIVE FOR
TRADE NEGOTIATIONS
WASHINGTON
20506
PERSONAL AND CONFIDENTIAL
October 27, 1977
MEMORANDUM FOR
Honorable Michael Blumenthal, Secretary of the Treasury
Honorable Juanita Kreps, Secretary of Commerce
FROM: Ambassador Robert S. Strauss
The President has signed off on a program that would
involve our inviting to Washington about 400 business and
professional men and women in groups of approximately 40
each, staged over a several month period at two-week
intervals.
It is the thought that we would look for a broad cross
section of participation across the country -- not just those
of Business Roundtable and Business Council stature. My
thought is the President of the Chamber of Commerce from
Abilene, Texas, the manufacturer from Indianapolis, the
farmer from Iowa, and the investment banker from Wall Street
would be the sort of mix we would be looking for.
We are going forward with the accumulation of names and
I am sure each of you will have numerous suggestions that
you might be pulling together and, upon Mike's return, we'll
get together to think through the implementation of the
program.
My original thought and the President's tentative agreement,
was that we would use about an hour and a half of Cabinet
time and one half hour of the President's time with each
group. We can reach the final conclusions when we get
together.
CC: H. Jordan, Jack Watson, S. Eizenstat
DETERMINED TO MIE BE AN ADMINISTRATIVE DATE 6/30/87
MARKING BY
DETERMINED TO BE AN ADMINISTRATIVE
MARKING BY
DP
DATE 2-4-83
C
CONF IDENTIAL
TO:
PRESIDENT CARTER
VICE-PRESIDENT MONDALE
SECRETARY SCHLESINGER
H.S.
FROM:
HAMILTON JORDAN AND ENERGY TASK FORCE
RE:
DAILY REPORT/OCTOBER 27TH
Metzenbaum Amendment on User Tax. Passed the Senate
today by a vote of 57-31. Senator Byrd and Long voted
against the Metzenbaum amendment. Byrd did not even
bring up a tabling motion which suggests that he knew
Metzenbaum had the votes to pass his amendment. The
winning coalition included several loose groups that
we have been trying to bring together - the Zorinsky/
DiConcini types, some of the moderate Republicans and
a few Southern Democrats. Frank Moore's assessment
is that a number of Senators, smarting from bad pub-
licity that the Senate was not doing anything, were
determined to show that they could do something con-
structive on energy.
Defeat of Jackson Amendment. Jackson's amendment
was defeated 38-56. Long was obviously happy over
this development and Jackson is sulking according to
several people although he anticipated the vote his
amendment received.
ACOTROSTATIC REPRODUCTION MADE FOR
Other Senate action. The Senate dumped the Finance
Committee's tax credit for Trailways and Greyhound,
but overwhelmingly passed a tax credit for the elderly
which automatically goes into effect in times of bad
weather.
Senate action tomorrow. More amendments for consid-
eration. The most difficult will be some oil pricing
and conservation amendments from Bartlett-Hansen-
Bellmon. Kennedy has threatened to raise the divest-
iture issue if any of the Bartlett amendments pass.
Conference Committee action. Spent the entire day
debating an issue relating to the governors' juris-
diction over EPA clean air standards. They reached
a compromise which favors the House position.
Agreement to postpone Governors' Conference. Jack
Watson, Jim Schlesinger and Hamilton Jordan agreed
today to postpone the conference scheduled for late
next week because of the potentially negative effect
it would have on the Congress. Also, the good pos-
sibility that certain Governors might use the con-
ference as a forum to criticize the President's energy
program. Speaker O'Neil and Senator Byrd strongly
favored the postponement. Jack is handling the re-
scheduling of the conference.
Good feedback from Senators. Frank Moore reports that
two Senators - Durkin and Church - report dramatic
shifts in their mail in support of the President's en-
ergy plan. Durkin says that they can't explain their
support but that the shift is real and also dramatic.
Ham
Let my
previoustment
stand-
PERSONAL AND CONEIDENTIAL
head it
J
TO:
PRESIDENT CARTER
FROM:
HAMILTON JORDAN H.J.
I have been drafted by my colleagues to broach with
you a subject that is near and dear to your own heart -
the possible postponement and/or cancellation of your
foreign trip.
With total disregard for myself, I submit the attached
memorandum on this subject. Frank Moore, Jody, Stu
and Jim Schlesinger agree with this analysis and my
recommendation.
"Electrostatic reproduction made for preservation
purposes."
"DETERMINED TO BE AN ADMINISTRATIVE MARKING
CANCELLED PER E.O. 12356, SEC. 1.3 AND
ARCHIVIST'S MEMO OF MARCH 16, 1983"
November 1, 1977
Relationship of Foreign Trip to Energy Bill
As has been frequently stated in the press and accepted
by you publicly, the first year of your Presidency will
be measured - to a large extent - by our success or
failure in getting a good energy bill. If we win this
battle, we will have tremendous political momentum in
ON
January when the Congress convenes
ratification of
the Panama Canal treaty and SALT II and welfare reform.
If we lose the energy bill, all of these things become
even more difficult.
Politically, we have been given a great opportunity to
exceed expectations because the media publicly buried
our energy bill two months ago. If we can resurrect it
in conference and pass a good bill through both houses,
we will be given credit not only for having a good year,
but also given political credit for working well with
the Congress.
Several weeks ago, you underlined the high personal
and political significance you attached to this bill by
stating your willingness to cancel your foreign trip
if necessary to work on the energy bill. Despite your
caveat "if necessary", the media and the American people
have taken that to mean that you would not leave the
country if you didn't have an energy bill. I think
realistically that is the perception that we are dealing
with on the subject of the trip.
That statement, our activities and your attitude of
not being in a hurry have had much to do with the con-
siderable strategic progress we have made on the bill
to date. It now comes time for you to reconcile that
statement, the importance you attach to the bill and
our political strategy for passing it with the foreign
trip.
We feel basically that you have two options:
1. Go on the trip as scheduled. Due to the
long schedule for acting on the bill which
is anticipated by the leadership, you feel
comfortable proceeding with your trip. You
will stay in touch by phone every day to check
on the progress of the conference, and Jim
Schlesinger has your complete confidence to
make decisions on your behalf. If at any
point you are needed back in Washington, you
will gladly return.
2. Postpone trip to date uncertain. The energy
bill is the most "important domestic crisis
facing our country". You cannot leave on a
long and extended foreign trip while it is
being debated in the Congress. You plan to
stay here and work for the passage of a good
bill which will meet the goals described to
the American people in April and in November.
The trip will be rescheduled at a time conven-
ient for the countries you had planned to
visit.
We do not recommend as a third option the possibility
of postponing the trip to a date certain. Let me explain
why.
The prognosis for quick Congressional action is highly
unlikely. No one - including the leadership and Frank
Moore's staff - thinks that there is any way for the
Congress to complete action on the bill before the 21st.
In fact, the collective best guess of these same people
is that it will be well into December before final action
is likely. They point to the problems already evident
in getting the conferees to act quickly on even the non-
controversial parts of the bill (conservation) and the
fact that the Senate will have to vote on five separate
bills and the Speaker's strategy of not bringing the
final bill to a vote in the House until the Senate has
acted.
If you postponed your trip to a date certain (let's
say the 5th of December), there would be several dis-
advantages. First, you would have given away our
greatest single advantage - the image of a President
who is not anxious to get just any bill and is willing
to wait until the Congress comes up with a strong
energy bill. If your trip was rescheduled for the 5th,
then the opponents of the bill would probably try
to wait until the last minute to make their deals,
figuring that you would make greater sacrifices in
order to meet the schedule of your trip. And while
I know that you would react adversely to such a strat-
egy on their part, the perception in the Congress would
be that your trip represents potential leverage on
you. So, the probable strategy of the opponents of
the bill would be to wait until the week of your trip
to try to force unacceptable compromises on you. If
you balked - as I know you would - then we would have
simply lost more time in the negotiating process. More
importantly, we would have lost the great advantage
we have of not seeming to be in a hurry. Also, if the
trip were rescheduled for the 5th, there is a good
chance that it would come in a critical time of the
negotiations when your presence here might really be
pivotal in getting a good energy bill or having no bill
at all. For all of these reasons, we believe that the
worst decision would be to postpone your trip to a
certain date.
We should review the advantages and disadvantages
of the other two options.
GO ON TRIP AS SCHEDULED
Pros
-Prevents delay
-Avoids problems of rescheduling with possibility of
having to drop countries from planned visit
-will please the countries which have been preparing
for your visit
Cons
-Takes the public focus off of energy.
-Your departure while bill is still being considered
appears to contradict earlier statement that you would
cancel foreign trip if necessary.
-Unable to be personally involved in critical negot-
iations on the bill.
-Diminishes chance that trip will be covered fairly
by the press. Stories will be that while the Congress
is debating bill Carter called "most important bill
of my Administration", the President is in some obscure
place for some unexplained reason.
-Will open President to partisan attacks that
he is more interested in foreign affairs than
domestic problems.
-Assures negative press stories on trip and energy
bill.
POSTPONE TRIP TO DATE UNCERTAIN
Pros
-Underscores in a dramatic way the high priority this
Administration places on passage of the energy bill.
Results in increased public attention being focused on
the Congress with the probable result that they will
act more quickly.
- -President available to resolve major disputes which
might arise.
-Insures that trip at a later date will receive better
coverage and treatment in this country.
Cons
-Disappoints countries on trip who have to cancel
plans.
-To take same trip later presents considerable problems,
particularly if you want to be in France, but not too
close to their elections.
-Trip might have to be modified when taken later.
Between the two options, there is a strong consensus
that the second option is much preferred. Frank Moore,
Jody, Jim Schlesinger and Stu all agree that it would
be bad for you to leave the country while the energy
bill is being debated and bad to give away the advantage
of time by postponing the trip to a date certain.
By simply postponing trip to a date uncertain, I believe
that you underscore your commitment to the energy bill,
maintain the public and political advantage of not seem-
ing to be in a hurry and expedite final action on the
bill.
C
DETERMINED TO BE BB AN ADMINISTRATIVE
MARKING BY
DATE 2-4-83
October 31, 1977
CONFIDENTIAL
TO:
PRESIDENT CARTER
VICE-PRESIDENT MONDALE
SECRETARY SCHLESINGER
HI.
FROM:
HAMILTON JORDAN AND THE ENERGY TASK FORCE
Senate action. Frank Moore reports the obvious news that
the Senate finally completed action today on the tax portions
of the energy bill. Despite his initial temptation to have
a run at Senator Percy's gas guzzler bill, Senator Long de-
cided instead to table it after it became apparent that the
large number of absentees made passage of it highly improbable
if not impossible. Frank reports a mixed bag of votes on the
final passage of the bill which shows no clear pattern or
coalition. For example, Jackson and Bumpers voted against
final passage although they will both support our efforts to
get a energy bill out of conference and through the Senate.
Post mortem on strategy to date. Everyone agrees that our
strategy to date has been correct and successful. We have
shown restraint when it has been very tempting to get in-
volved in the Senate's deliberations. Through it all we have
maintained the credibility of the Administration and the
President. Everyone in the informal energy task force gives
Frank Moore and his people high marks for their good work
in helping us all tip-toe through the political mine fields.
Everyone agrees that the fact that we have not been too eager
or anxious to have just any energy bill has been a tremend-
ous negotiating advantage for us.
ELECTROSTATIC
MADE
FOR
Everyone agrees that we should use our influence in a
timely fashion and in an appropriate way. The collective
feeling of our energy group is that the conference comm-
ittee should be forced to grapple with the tough issues
for a while on their own before we step in to express the
views of the Administration. As has been said before,
they should be forced to dig themselves out of the hole that
they are in.
For us to begin to take "Administration positions" at the
outset of the debate will jeopardize the fragile political
coalition that has developed in support of the bill. We
need to make decisions and state positions at critical times
in these negotiations - not at the outset. Time has been
on our side and will continue to be on our side. If we
appear too anxious to make the foreign trip, we sacrifice
our greatest advantage and possibly jeopardize passage of
an acceptable energy bill. A strategy memorandum is being
prepared for your review. You will receive it Tuesday morn-
ing. After you have had a chance to review it, Frank, Jim,
Jody, Stu and myself would like to talk with you about it.
Governors' conference on energy postponed. Jack Watson has
notified the governors of your decision to postpone the
energy conference. Some bickering from oil state governors
(Boren in particular), but generally the reaction has been
good and all agree it was the correct decision.
Energy speech redrafting begun. Stu and Charlies Schultze
have met with Fallows and they are redrafting speech for
Thursday night.
Doug Fraser scheduled to see you Tuesday. UAW President
Doug Fraser has appointment for Tuesday afternoon. You will
receive joint briefing paper from Frank Moore, Schlesinger
and Stu. Their support is important. Now that AFL-CIO has
taken formal public position, the UAW will not want to be
left out although they have obvious interests at stake. With
any luck, you should be able to get support from Fraser.
Deadlock in conference continues on gas guzzler. The conferees
remained deadlocked on the question of the gas guzzler VS.
the Metzenbaum minimum standards proposal. They recessed at
noon to give the staff time to try for a compromise - as a
result, as of now we have no action on conservation and
none on the guzzler VS. minimum standards. They will try
again tomorrow.
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
INFORMATION
3 November 1977
TO:
FROM:
HAMILTON RICK Rl
SUBJECT:
6:00 PM Energy Meeting (11/2/77)
CONFERENCE COMMITTEE
Basically, nothing happened. The chief issue relating to
coal conversion has to do with impact assistance. The
Senate would give the President condemnation authority,
and a $1.2 billion authorization for impact assistance.
The House so far has made no provision for this, but
Congressman Staggers, obviously, is interested, as
expansion of coal production in West Virginia will create
"boom town" problems. The Administration agrees that this
is a serious problem. This issue may the the first
expensive bargaining chip the conference deals with.
TWO-TRACK CONFERENCE
The House Conferees will meet with the Energy Committee
and Finance Committee Conferees from the Senate simultaneous-
ly -- one in the morning and one in the afternoon. This
will complicate trade-offs, but may be in our favor.
The order for consideration of the energy taxes is good
for us: first: gas guzzler; then oil and gas user tax;
and finally COET.
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
INFORMATION
4 November 1977
TO:
FROM:
HAMILTON RICK Rd
SUBJECT:
6:00 PM Energy Meeting - 11/3/77
CONFERENCE COMMITTEE
The Conference continues to work, and make little progress,
on coal conversion. There is some speculation that they
may be stalling deliberately, to see what happens on the
tax portions of the energy program.
Senate Finance Committee conferees have yet to be appointed.
DUAL TRACK CONFERENCE
The tax portion of the Conference may proceed rapidly.
Apparently, Ullman, Ashley and Long will sit down together,
with Ashley holding 13 proxies. (There is some question
as to whether these meetings will be informal, or will
in fact be the tax conference.)
Larry Woodworth made the point, and Stu agreed, that
there appears to be a lot more concern in behalf of
independent oil companies by congressmen from producing
state, than for the majors. The reason is that the in-
dependents are frequently personally owned (and hence
able to contribute). Thus, some people are looking at
a compromise in which the decline rate would be applied
to independents, but not to the majors.
PNE
Al Can
Lac Jee
Cab visit
MEDICAL
TV Talk
Non holef
Lab/HEW approp
UNTATESO
MIdE
I
Department of Energy
Washington, D.C. 20585
C
November 1, 1977
MEMORANDUM FOR:
THE PRESIDENT
FROM:
JIM SCHLESINGER
STU EIZENSTAT
J.Stu
JIM MCINTYRE
you
SUBJECT:
Overview of Congressional Action on the
National Energy Plan to date
For purposes of the Conference, The National Energy Act
has been divided into the following five parts:
1. Conservation
2. Coal Conversion
3. Utility Rate Reform
4. Natural Gas
5. Taxes
Attachment A summarizes the overall budget impacts and
energy savings of our original proposal, the House passed
bill and preliminary estimates of the Senate passed bill.
You should note that the Senate bill would result in a
FY 78-85 budget deficit impact of $63 billion, while the
NEP shows a moderate surplus and the House bill shows a
similar surplus if the crude oil tax receipts are not
rebated. Attachment B includes a detailed side-by-side
analysis of the Administration's original proposals, House
action, Senate action, Conference action (if already taken),
and the Administration's position where one has been estab-
lished. Since the Senate completed action only yesterday
evening, savings and revenue estimates of the Senate pro-
visions are still preliminary.
The balance of this memorandum contains a summary overview
of the major Congressional Actions to date on each of
the five parts.
2
1. Conservation.
The Conference has completed its work on the conservation
bill with the exception of one issue -- whether increased
automobile fuel economy will be achieved by the Senate
passed prohibition on the construction of gas guzzlers
(Senator Metzenbaum's amendment) or by the house passed
Gas Guzzler Tax. Yesterday the Conferees were deadlocked
22 this issue, with the House insisting upon the Gas
Cuzzier Tax and the Senate insisting upon minimum standards.
The Conferees recessed at noon to try and work out a compro-
mise and will be meeting on this matter again today. We
would not object to a combination of the two approaches, but
have remained neutral due to Congressman Ashley's vehement
opposition to the minimum standards because of his concern
that American Motors cannot meet them.
The rest of the Conservation Bill has been agreed to without
any major controversy. A watered-down version of the utility
insulation program has been adopted, as well as a weatheriza-
tion program for homes, Federal Buildings, and schools and
hospitals.
II. Coal Conversion.
Both the House and the Senate bills provided for the
blanket prohibition of any new major industrial boilers
that burn oil or gas. They also provide a case by
case authority to order existing facilities to convert
to alternate fuels. Exemptions are allowed if coal
cannot be used for either environmental or economic
reasons. Utilities are required to be off gas for
base load purposes by 1990.
The major differences between the Administration, House and
Senate bills are (1) the size of the facilities to which
prohibitions on new oil use apply, and (2) the provisions
in the Senate bill which would establish a $13 billion
energy impact assistance program of loans and grants to
states and municipalities. The National Energy Act and
the House Bill cover new units of 10 megawatts or greater.
The Senate bill prohibits use in units larger than 30
megawatts. We clearly prefer the House bill because of
the greater coverage, greater savings, and lower cost.
Our recommended position is to support the House Bill on
all major points.
3
The Conference should be getting to coal conversion within
the next several days as the Gas Guzzler Tax issue is either
resolved or passed over.
III. Utility Rate Reform.
The House Bill establishes new minimum ratemaking
standards for the nation's utilities and goes beyond
the Administration's original proposals in several
respects. The NEP proposed that rates be based on
actual costs, and that declining block rates be phased
out unless they are cost-justified. The bill also
required utilities to provide time of day pricing and
to undertake various load management initiatives. The
Federal Energy Regulatory Commission of the Department
of Energy would be given the authority to order inter-
connections to take advantage of regional efficiencies.
The bill prohibited master metering in new apartments,
and rate discrimination against those who produce elec-
tricity by solar or wind power or by cogeneration.
Additions to the House Bill include funding of intervenors
before State Utility Commissions, creation of a public
council's office in DOE, a tightening of the rules
governing interlocking directorates and strict limita-
tions on automatic fuel adjustment clauses. Finally,
$300 million is provided for the development of small
hydroelectric projects.
The Senate Bill is greatly watered-down and provides only
the authority to intervene in State Utility Commission
proceedings and minimal new authority for gathering data
on utility rate structures throughout the country. The
only major initiative in the Senate Bill is a requirement
that lifeline rates be established by every State Public
Utility Commission.
The recommended position is to support the House Bill
in Conference, realizing that a less ambitious version
closely resembling our original proposal is the most
likely Conference product. The Senate, which tends to
be more sensitive to the utilities, will adamantly oppose
the House Bill because it pre-empts State authorities in
several areas. The House Conferees, on the other hand,
4
believe that their strong provisions represent one of the
few pro-consumer parts of the Bill, and are determined to
hold firm. A strong provision here would help hold liberals
in line for compromises which may have to be made in other
areas by the conferees.
Recent Conference staff meetings with key utility industry
representatives on a confidential basis may hold the key to
an eventual compromise.
IV. Natural Gas
The House Bill puts interstate and intrastate pricing of
natural gas on the same basis. It adopts a new commodity
value pricing approach that establishes a price for new
natural gas at the Btu equivalent of the average price of
all domestic oil -- or approximately $1.75 per mcf by the
beginning of next year. High cost new production is given
a special incentive price. An incremental pricing provision
passes the cost of higher priced new gas on to the industrial
sector first.
There are only two differences of note between the House
Bill and the Administration's original proposal. First,
under the NEP, expiring intrastate contracts could automat-
ically increase to $1.75 per mcf. Under the House Bill,
upon the expiration of old intra and interstate contracts,
the contract price remains the same unless a higher price is
needed to maintain production. Second, new gas in the House
Bill is defined as gas from any newly discovered reservoir,
while the Administration's bill established a 2 1/2 mile,
1,000 foot deep requirement.
The Senate passed Pearson-Bentsen Bill deregulates new
onshore gas after a two year very high ceiling price (about
$2.60 in 1977 dollars), and sets up a new regulatory standard
based on commodity value pricing for the next five years
for new offshore gas. New gas is loosely defined as any gas
from a new reservoir or an extension of an existing reservoir.
It is critical that the Administration's position continue
strongly in favor of the House-passed bill. An eventual
compromise holding to the $1.75 price with a new reservoir,
broader definition of new gas and outright deregulation of
special high cost production (geopressurized methane, deep
drilling, Devonian Shale) may be possible if our House
supporters are the ones that first propose that kind of
formula to the Administration. A premature reversal of
those roles could prove politically disasterous.
5
V. Taxes
The critical taxes in this most complicated part of the
bill are the:
1. Oil and Gas Users Tax
2. Gas Guzzler Tax
3. Crude Oil Equilization Tax (COET)
With passage of the Metzenbaum oil and gas users tax in
the Senate, we are assured of getting some form of this
tax out of Conference. Our preference is the House tax,
since it covers all old and new industrial and utility
facilities (subject to certain environmental and process
exemptions) whether or not they are actually capable of
burning coal. In addition, the net receipts to the
Treasury from the House-passed tax would total $4.7
billion (FY 78-85) compared to only $.8 billion in the
Senate bill. Metzenbaum's tax applies only to existing
coal capable facilities and to new plants, thus building
an incentive to run old oil and gas boilers for a longer
period to avoid the tax. While the NEP and House-passed
version would accelerate replacement of old oil and gas
fired units, the Senate's distinction between new and
existing units could retard replacement. The Metzenbaum
proposal would save approximately 700,000 barrels per day
compared to the 1.2 million barrels per day savings of the
House-passed bill. The positive significance of the Senate
vote in favor of such a tax, however, cannot be overestimated.
As noted earlier, the House Conferees will be very firm
on the Gas Guzzler Tax, and it can be expected to survive.
The most critical debate will develop over the COET in the
House Bill. Pursuant to provisions in the Senate Bill
requiring that COET funds be used for energy saving or
producing enterprises, Senator Long will insist that some
of the COET revenues be returned to the producers through
a variety of schemes. Our recommended position is to
favor the House Bill which rebates directly all revenues
in the first year and thereafter returns the funds to the
Treasury for tax reform or other general purposes.
6
Long will insist that major portions of the monies be
returned to producers, either through an accelerated
decline curve for old oil fields (the old oil is released
from controls more quickly resulting in more "new", higher
priced oil over the life of a field), readjustment of the
stripper well definition thereby deregulating additional
oil, or an energy trust fund for financing producers.
Long is also interested in a tax credit for curtailed
Louisiana gas users equal to the difference between their
current contract price and higher priced alternate fuels.
This tax credit, plus a more liberal definition of marginal
stripper well production may be enough to secure COET with-
out resorting to an accelerated decline curve. Again,
however, it is essential that for now we give our full
support to the House Bill until the Conferees indicate
to us they are ready to compromise.
Variations in other tax provisions establishing residential
insulation, solar and wind energy credits should be rela-
tively easy to resolve.
With final Senate floor action reducing the 40 percent
investment tax credit for approved energy investments to
a 15 percent credit, the percentage amount of the credit
should be relatively easily resolved since the Senate
provision is only 5 percent more than what we originally
proposed and the House accepted.
A series of other production credits such as the $3.00
per barrel credit for oil shale and the $.50 per mcf
credit for geopressurized methane and other exotic gases,
will be used as bargaining chips by Long to increase the
COET revenues returned to producers.
The long list of credits added by the Senate would cost
the Treasury $34 billion more than the House bill, without
inducing substantial additional fuel savings.
ATTACHMENT A
Preliminary Estimates
Oil Import Savings Comparison
of NEP/House/Senate Bills
NEP
House
Senate
CONSERVATION
1.
Residential Buildings & Appliances
(Tax credits & Regulatory Programs)
660
690
710
2.
Transportation
Gas Guzzler/Truck Standards
Minimum Auto Efficiency Standards
290
280
175
Other
-
-
25
3.
Electric Utility Regulatory Policies
70
70
-
Subtotal
1,020
1,040
910
PRICING POLICIES
4. COET
230
230
5.
Natural Gas Pricing/Deregulation
180
325
695
Subtotal
410
555
695
PRODUCTION AND CONVERSION
6.
Incentives for Alternate Fuels
Production
-
-
135
7.
Business Energy Tax Credits
200
210
560
8.
Oil and Gas User Taxes
2,465
760
445
9.
(Coal Conyersion Regulatory
Program)
(340-400)
(340-400)
(170-220)
Subtotal
2,665
970
1,140
Allocated Oil Savings
4,095
2,565
2,745
Unallocated Oil Savings
445
85
330
Total Oil Savings
4,540
2,650
3,075
1/
Estimates are preliminary and subject to change.
Included in user tax estimate.
Preliminary Estimates
Comparison of Budget Impacts
of NEP/House/Senate Bills
Cumulative Budget Impacts
1978-1985 Millions of Current $
NEP
House
Senate
A. Revenue Impacts
1. Residential Tax Credits
-4,484
-4,827
-7,099
2.
$75 Tax Credit for Elderly
-
-
-10,051
3. $150 Credit for Home Heating Oil
-
-
-7,500
4. Gas Guzzler
n1/
+915
-
5. Crude Oil Equalization Tax
02/
+27,452
-
6. Incentives for Alternative Fuels
Production
-552
-546
-2,107
7. Business Energy Tax Credit
-3,064
-2,471
-15,060
8. Oil and Gas Users Tax
+34,400
+4,698
+774
9. Extension of 4 cents Gas Tax
3/
to 1985
--
---
-
10. Other
+423
+7,348
-522
Subtotal
+26,723
+32,569
-41,565
B. Outlays
1. Conservation
-5,850
-9,779
-9,250
2. Oil and Gas Pricing
-3,270
-3,270
-1,713
3. Energy R&D
+2,130
+2,130
+2,130
4. Coal Conversion
-
-
-2,914
5. Strategic Petroleum Reserve
-12,429
-12,429
-10,868
6. Other
-
-
-
Subtotal
-19,919
-23,348
-22,615
C. Net Budget Effects
TOTAL REVENUE
+26,723
32,569
-41,565
TOTAL OUTLAYS
-19,419
23,348
-22,615
NET BUDGET EFFECTS
+7,304
+9,2214/-64,180
1/ $7,700 would be collected and fully rebated.
2/
$13,500 would be collected and fully rebated.
3/ The 4 cent gas tax would be extended by both the Senate and House
bills. However, its impact has been included in the base budget
estimates.
4/ If COET were fully rebated, as is proposed, the net budget effect
would become - $18,231.
(
DETERMINED TO BE AN ADMINISTRATIVE
MARKING BY
BB
DATE
2-4-83
CONF IDENTIAL
November 1, 1977
TO:
PRESIDENT CARTER
VICE-PRESIDENT MONDALE
SECRETARY SCHLESINGER
HI
FROM:
HAMILTON JORDAN AND THE ENERGY TASK FORCE
RE:
DAILY REPORT - NOVEMBER 1ST
Fraser endorses energy plan. Doug Fraser, President of
the UAW, publicly endorsed the NEP today following his
meeting with the President. Jody took him to the briefing
room where he made a public statement of support which
unfortunately was undermined by his response to a question
about the ILO. At any rate, we now have the UAW on record
in support of the energy bill which will be helpful.
Conference Committee activities. The Senate deferred
to the House in allowing the conference committee to con-
sider the coal-conversion bill before taking up the gas-
guzzler tax.
Definition of Woodworth role. Stu, Frank, Jim Schles-
inger and I met with Larry Woodworth to define more pre-
cisely his role during the conference. On one hand, he
is a valuable resource, but he can not let his traditional
"Electrostalic repreduction made for preservation
purposes."
relationship with Long and particularly Ullman under-
mine the position of Ashley and the House. The Speaker
has made it plain to Senator Long and others that Ashley
represented the House and we clarified that with Larry.
Also, we agreed that Larry would not be a "spokesman"
for the Administration as much as a messenger between
the conferees and the White House. It was agreed that
Larry and Les Goldman of DOE would write a daily sum-
mary at the end of each day's activities.
Strategy and background memos prepared for President.
we'll
lay
A joint memorandum on strategy and background analysis
was submitted to you today for your review. Your re-
ford
for
action to these items is needed.
about
week
Decision on speech to nation pending. A decision will
have to be made Wednesday morning as to whether or not
the President should address the nation on Thursday
night or Tuesday. The growing feeling among the energy
group is that Tuesday is probably better. This will
give you more time to work on the speech and will allow
for more advance publicity. Also, as the timetable
seems to have been lengthened, we need to stretch out
our shots.
Tues
PERSONAL AND CONFIDENTIAL
TO:
PRESIDENT CARTER
FROM:
HAMILTON JORDAN
I have been drafted by my colleagues to broach with
you a subject that is near and dear to your own heart -
the possible postponement and/or cancellation of your
foreign trip.
With total disregard for myself, I submit the attached
memorandum on this subject. Frank Moore, Jody, Stu
and Jim Schlesinger agree with this analysis and my
recommendation.
"DETERMINED TO BE AN ADMINISTRATIVE MARKING
CANCELLED PER E.O. 12356, SEC. 1.3 AND
ARCHIVIST'S MEMO OF MARCH 16, 1983"
November 1, 1977
Relationship of Foreign Trip to Energy Bill
As has been frequently stated in the press and accepted
by you publicly, the first year of your Presidency will
be measured - to a large extent - by our success or
failure in getting a good energy bill. If we win this
battle, we will have tremendous political momentum in
ON
January when the Congress convenes
ratification of
the Panama Canal treaty and SALT II and welfare reform.
If we lose the energy bill, all of these things become
even more difficult.
Politically, we have been given a great opportunity to
exceed expectations because the media publicly buried
our energy bill two months ago. If we can resurrect it
in conference and pass a good bill through both houses,
we will be given credit not only for having a good year,
but also given political credit for working well with
the Congress.
Several weeks ago, you underlined the high personal
and political significance you attached to this bill by
stating your willingness to cancel your foreign trip
if necessary to work on the energy bill. Despite your
caveat "if necessary", the media and the American people
have taken that to mean that you would not leave the
country if you didn't have an energy bill. I think
realistically that is the perception that we are dealing
with on the subject of the trip.
That statement, our activities and your attitude of
not being in a hurry have had much to do with the con-
siderable strategic progress we have made on the bill
to date. It now comes time for you to reconcile that
statement, the importance you attach to the bill and
our political strategy for passing it with the foreign
trip.
We feel basically that you have two options:
1. Go on the trip as scheduled. Due to the
long schedule for acting on the bill which
is anticipated by the leadership, you feel
comfortable proceeding with your trip. You
will stay in touch by phone every day to check
on the progress of the conference, and Jim
Schlesinger has your complete confidence to
make decisions on your behalf. If at any
point you are needed back in Washington, you
will gladly return.
2. Postpone trip to date uncertain. The energy
bill is the most "important domestic crisis
facing our country". You cannot leave on a
long and extended foreign trip while it is
being debated in the Congress. You plan to
stay here and work for the passage of a good
bill which will meet the goals described to
the American people in April and in November.
The trip will be rescheduled at a time conven-
ient for the countries you had planned to
visit.
We do not recommend as a third option the possibility
of postponing the trip to a date certain. Let me explain
why.
We should review the advantages and disadvantages
of the other two options.
GO ON TRIP AS SCHEDULED
Pros
-Prevents delay
-Avoids problems of rescheduling with possibility of
having to drop countries from planned visit
-will please the countries which have been preparing
for your visit
Cons
-Takes the public focus off of energy.
-Your departure while bill is still being considered
appears to contradict earlier statement that you would
cancel foreign trip if necessary.
-Unable to be personally involved in critical negot-
iations on the bill.
-Diminishes chance that trip will be covered fairly
by the press. Stories will be that while the Congress
is debating bill Carter called "most important bill
of my Administration", the President is in some obscure
place for some unexplained reason.
-will - open President to partisan attacks that
he is more interested in foreign affairs than
domestic problems.
-Assures negative press stories on trip and energy
bill.
POSTPONE TRIP TO DATE UNCERTAIN
Pros
-Underscores in a dramatic way the high priority this
Administration places on passage of the energy bill.
-Results in increased public attention being focused on
the Congress with the probable result that they will
act more quickly.
-President available to resolve major disputes which
might arise.
-Insures that trip at a later date will receive better
coverage and treatment in this country.
Cons
-Disappoints countries on trip who have to cancel
plans.
-To take same trip later presents considerable problems,
particularly if you want to be in France, but not too
close to their elections.
-Trip might have to be modified when taken later.
Between the two options, there is a strong consensus
that the second option is much preferred. Frank Moore,
Jody, Jim Schlesinger and Stu all agree that it would
be bad for you to leave the country while the energy
bill is being debated and bad to give away the advantage
of time by postponing the trip to a date certain.
By simply postponing trip to a date uncertain, I believe
that you underscore your commitment to the energy bill,
maintain the public and political advantage of not seem-
ing to be in a hurry and expedite final action on the
bill.
Administratively Confidential - Not for Circulation
THE WHITE HOUSE
WASHINGTON
October 12, 1977
MEMORANDUM FOR THE PRESIDENT
FROM
JIM SCHLESINGER
You
STU EIZENSTAT
SUBJECT
STRATEGY FOR ENERGY LEGISLATION
As we have discussed, we believe that the Administration
must make an all-out effort over the next four to six
weeks to arouse public support for our energy plan as
adopted by the House. The Senate does not appear to be
willing to deal with the tax related portions of your
plan, and several key parts of your program (well head,
gas guzzler and oil and gas user taxes) will be left for
the Conference to resolve. Without strong support from
the Administration, it will be difficult for the House
to stand firm on these issues.
Two particular concerns must be addressed in any conference
strategy we follow:
correction of the Congressional perception that the
public does not take the energy problem, and the
equity questions involved, seriously;
reassurance to our House (and Senate) supporters that
the Administration is not going to compromise too
no t only
early or too far to get a bill this year. A strong
public stance in favor of the entire House bill at
at outset
the outset of the conference is critical.
The Administration's performance in the first year will be
measured in large part by the outcome of your national
Two
energy plan. This factor alone makes a major effort worth
the price.
To be effective, such a strategy must:
be centrally coordinated in much the same way as the
Panama Canal effort has been;
receive top priority among those who will be respon-
sible for carrying it out.
Administratively Confidential
- 2 -
We propose that we take the following steps:
1. Establish a White House/Department of Energy Task
Force, chaired by Hamilton, to outline and implement a
detailed plan for marshalling public opinion for the
National Energy Act. Once the plan receives your approval,
all activities should be coordinated through this Task
Force.
Elements of this strategy should include:
Use of the White House as a forum for briefings by
you and Dr. Schlesinger on the major parts of the
she
energy plan, including meetings with labor and
business leaders, state and local government officials,
and major citizen group leaders. Wide press coverage
would be provided.
Intensive speaking efforts by Cabinet officers and
other senior Administration officials to carry our
energy message to their constituencies. The princi-
pal officers involved should be the Secretaries of
Labor, Treasury, Agriculture, Commerce, HUD, and
Transportation, the CEA Chairman and the Special
Trade Representative. The Department of Energy has
agreed to provide drafts of appropriate speeches
for each of these individuals. Full briefings on
the Act and its Congressional status for Senior
officials will also be scheduled. Jack should help
coordinate out-of-town speeches. This could be
announced at the next Cabinet meeting.
A major Presidential speech or other public presen-
tation could rekindle the public sense of urgency
which was SO widely felt after your April 20 speech.
Such a speech should focus on the larger picture --
Schultze
why we need an energy program and what its basic
elements must be. It could also serve to remind
the public that the energy problem is getting worse,
not better.
2. Develop a press plan to ensure that the rationale
for and the Congressional progress on energy legislation
stays in the news. Jody is working on this now. This
could include having editors of major newspapers around the
country in for a Presidential-Schlesinger briefing. A
rough draft of Jody's plan is attached.
Administratively Confidential
- 3 -
I need memo a review
3. A series of meetings should be scheduled with you
and members of Congress, particularly the Conferees and
key members of the House and Senate leadership. To
reassure the House of our support and willingness to stick
by them during the Conference, an early meeting with the
House conferees just as soon as they have been appointed
would be in order. Frank is working on this. Individual
meetings may also become necessary.
Meetings with members of the Senate Finance Committee and
other key Senators should also be scheduled. Some of these
Senators profess not to understand the plan as well as they
should.
Before implementation of this plan, you should meet with
the Speaker, Senator Byrd, and any other members Frank
suggests to inform them of this overall strategy. We would
also recommend delaying visible implementation of this
strategy until the Finance Committee action is completed.
Frank should develop the details of this part of the plan
oh
and coordinate Congressional contacts.
While there are some risks inherent in this strategy --
including arousing Congressional sensitivity to "going over
their heads" -- we believe that it is the only wise course.
The conference gives us, for the first time, an opportunity
to focus public attention on one discrete effort rather
than a hodge-podge of Congressional activity. We believe
that a strong Administration push will be welcomed by most
of our Congressional supporters. An all-out effort will
also give you a measure of insurance on the outcome of the
legislation. If it is argood bill, you will get the credit.
If the Conference cannót agree on acceptable legislation,
you cannot be criticized for not trying to provide leader-
ship.
Ham could be asked to develop an overall plan by this Fri-
day with your schedule being appropriately coordinated.
Frank (Congress), Jack (Cabinet schedule), Jody (press),
Tim (scheduling) and others should report their proposals
to Ham for coordinated handling.
4. We should avoid attacking lobbyists and the Senate, and
should keep this push on a high level.
The key people involved, including the Vice President, agree
with this program. We also all agree that at this point you
should not outline the details of this plan in public statements.