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Correspondence – May 1982 (5)
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Correspondence – May 1982 (5)
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Records of the White House Office of the Deputy Chief of Staff (Reagan Administration)
Michael K. Deaver's Correspondence Files
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WITHDRAWAL SHEET
Ronald Reagan Library
Collection Name DEAVER, MICHAEL: FILES
Withdrawer
KDB
7/19/2005
File Folder
CORRESPONDENCE - MAY 1982
FOIA
F01-107/01
Box Number
7619
MCCARTIN
42
DOC Doc Type
Document Description
No of
Doc Date Restrictions
NO
Pages
1
LETTER
FROM M. DEAVER TO A MEMBER OF
1
5/18/1982
B6
B7(C)
128
HIS SECURITY DETAIL
2
LETTER
TO M. DEAVER FROM A MEMBER OF
3
ND
B6
B7(C)
129
HIS SECURITY DETAIL
Freedom of Information Act [5 U.S.C. 552(b)]
B-1 National security classified information [(b)(1) of the FOIA]
B-2 Release would disclose Internal personnel rules and practices of an agency [(b)(2) of the FOIA]
B-3 Release would violate a Federal statute [(b)(3) of the FOIA]
B-4 Release would disclose trade secrets or confidential or financial Information [(b)(4) of the FOIA]
B-6 Release would constitute a clearly unwarranted Invasion of personal privacy [(b)(6) of the FOIA]
B-7 Release would disclose information complied for law enforcement purposes [(b)(7) of the FOIA]
B-8 Release would disclose information concerning the regulation of financial Institutions [(b)(8) of the FOIA]
B-9 Release would disclose geological or geophysical Information concerning wells [(b)(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of gift.
Save
William Barnabas McHenry
164 East 72ⁿᵈ Street
New York, New York 10021
May 18, 1982
Mr. Michael K. Deaver
Assistant to the President
Deputy Chief of Staff
The White House
1600 Pennsylvania Avenue
Washington, DC 20500
Dear Mike:
You are a very special person, and those who
cherish the arts and humanities of this country owe you an
enormous debt of thanks. The President's Committee would
never exist but for you.
Sincerely,
Bamay
BMcH: cmz
THE WHITE HOUSE
WASHINGTON
May 18, 1982
Dear Jack:
Thanks for your thoughtfulness in sending
your book, Speak Up With Confidence. I
really look forward to delving into this
one. Maybe I would have projected a
different image if I'd had it a year and a
half ago.
I appreciate it.
Sincerely,
MICHAEL K. DEAVER
Assistant to the President
Deputy Chief of Staff
Mr. Jack Valenti
1600 Eye Street, N.W.
Washington, D.C. 20006
THE WHITE HOUSE
WASHINGTON
May 18, 1982
Dear A1:
Thanks for your thoughtfulness in sending
the Troy - Times Record clipping, and many,
many thanks for your continued support and
loyalty. It's been invaluable.
Sincerely,
MICHAEL K. DEAVER
Assistant to the President
Deputy Chief of Staff
The Honorable Alfonse D' Amato
United States Senate
Washington, D.C. 20510
ALFONSE D'AMATO
NEW YORK
United States Senate
WASHINGTON, D.C. 20510
May 13, 1982
Thruse dural
Mr. Michael K. Deaver
Deputy Chief of Staff
The White House
Washington, D.C. 20500
Dear Mike:
Enclosed please find the press reports
on my recent statements regarding the bud-
get impasse.
I believe it is critical that we
continue to point out to the American peo-
ple that it is Tip O'Neill and his gang
that are sabotaging a budget compromise.
You may be sure I will continue to
speak out in defense of the President and
his budget policies.
Regards,
ae
Alfonse M. D'Amato
United States Senator
AMD:jzu
Enclosures
DATE
NEWSPAPER
D' Amato: O'Neill sabotages budget talks
May 1, 1982
around and hurt the Demo-
dent's nose."
improved economy would have
By DAVID E. LYNCH
crats' chances" in the fall
D'Amato blamed Republican
widened those predicted gains.
Record Washington Bureau
elections.
lawmakers for O'Neill's at-
Asked if he thought O'Neill
TROY TIMES--RECORD
He said the president came
titude. "We should have been
was lured into a trap by
to the meeting with O'Neill and
more gracious in victory last
attending the meeting with
WASHINGTON - New York
other congressional leaders will-
year. We had people calling
Reagan, D'Amato said that if it
Sen. Alfonse M. D'Amato has
ing to find a solution to the
(O'Neill) names and carrying
was a trap, ''it didn't
accused House Speaker Thom-
budget deadlock, and he of-
on like little kids jumping up
work the Republicans are still
as P. O'Neill, D-Mass., of
fered to make cuts in defense
and down and applauding
going to suffer.
sabotaging budget negotiations
spending and to delay the third
themselves."
The senator was asked about
with President Reagan for the
year of the tax cut. But O'Neill
He said the collapse in
the dairy price support pro-
sake of political victories at the
and other Democrats "didn't
negotiations will hinder econom-
gram that is now being
NEWSCLIP WORKSHEET
polls next fall.
want (a compromise) to take
ic recovery, something for
overhauled by the Reagan
"Economic recovery was sac-
place, Amato said.
which "many incumbents in
administration with an eye
rificed on the altar of political
both parties will share responsi-
toward lower the supports. He
PAGE
The senator said O'Neill, who
expedience," D'Amato told re-
suffered embarrassing defeats
bility for." However, he pre-
said, "you're going to see more
FILE
porters during a breakfast
on the tax and budget cut bills
dicted, the Republicans, the
farms being sold" if the
meeting Thursday.
last year, "was not willing to
party that controls the White
support prices are cut. The
The Republican said the
put his own personal hurt
House, will receive much of the
high interest rates are at the
spèaker "didn't want a
aside." He said the speaker
blame. The Republicans may
heart of the dairy farm pro-
(budget) compromise for fear
was "looking forward to an
pick up 'one or two' seats in the
blem, he said. "The answer is
the economy would come
opportunity to bloody the presi-
Senate, D'Amato said, but an
to get the interest rates down."
NEWSCLIP WORKSHEET
BUFFALO NEWS
NEWSPAPER
FILE
April 30, 1982
DATE
PAGE
D'Amato Points
To O'Neill as
Major Villain
News Washington Bureau
WASHINGTON - Republicans
could be the biggest loser in the
White House-Congress stalemate
over the fiscal 1983 budget, but
House Speaker Thomas P. O'Neill,
D-Mass., is the major villain. Sen.
Alfonse D'Amato, R-N.Y., asserted
Thursday.
He said: "The failure to agree
sent a signal, which is probably
accurate: there is too much politics
and not enough professionalism
here. It is viewed by many as a
plague on both houses.
Speaker O'Neill desperately
wants to recoup some of the politi-
cal losses he suffered last year. He
was looking to scuttle any attempt
at any reasonable compromise, and
he shares the major part of the re-
sponsibility for the failure."
Sen. D'Amato conceded that
Republicans could end up being
blamed by the voters this year.
He granted that Mr. O'Neill had
cause to be miffed at Republicans
after the razzing they gave him in
public last year when administra-
tion tax and spending-cut proposals
won in the Democratic-controlled
House.
"The Republicans didn't handle
that well," he said. "We shouldn't
have people calling him names."
WITHDRAWAL SHEET
Ronald Reagan Library
Collection Name
Withdrawer
DEAVER, MICHAEL: FILES
KDB 7/19/2005
File Folder
FOIA
CORRESPONDENCE - MAY 1982 (4)
F01-107/01
MCCARTIN
Box Number
7619
42
DOC Document Type
No of Doc Date Restric-
NO Document Description
pages
tions
1
LETTER
1 5/18/1982 B6
128
FROM M. DEAVER TO A MEMBER OF HIS
B7(C)
SECURITY DETAIL
Freedom of Information Act - [5 U.S.C. 552(b)]
B-1 National security classified information [(b)(1) of the FOIA]
B-2 Release would disclose Internal personnel rules and practices of an agency [(b)(2) of the FOIA]
B-3 Release would violate a Federal statute [(b)(3) of the FOIA]
B-4 Release would disclose trade secrets or confidential or financial information [(b)(4) of the FOIA]
B-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA]
B-7 Release would disclose Information compiled for law enforcement purposes [(b)(7) of the FOIA]
B-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA]
B-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of gift.
WITHDRAWAL SHEET
Ronald Reagan Library
Collection Name
Withdrawer
DEAVER, MICHAEL: FILES
KDB 7/19/2005
File Folder
5
FOIA
CORRESPONDENCE - MAY 1982 (4)
F01-107/01
MCCARTIN
Box Number
7619
42
DOC Document Type
No of Doc Date Restric-
NO Document Description
pages
tions
2
LETTER
3
ND
B6
129
TO M. DEAVER FROM A MEMBER OF HIS
B7(C)
SECURITY DETAIL
Freedom of Information Act - [5 U.S.C. 552(b)]
B-1 National security classified information [(b)(1) of the FOIA]
B-2 Release would disclose internal personnel rules and practices of an agency [(b)(2) of the FOIA]
B-3 Release would violate a Federal statute [(b)(3) of the FOIA]
B-4 Release would disclose trade secrets or confidential or financial information [(b)(4) of the FOIA]
B-6 Release would constitute a clearly unwarranted Invasion of personal privacy [(b)(6) of the FOIA]
B-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA]
B-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA]
B-9 Release would disclose geological or geophysical Information concerning wells [(b)(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of gift.
MICHAEL K. DEAVER
dear Pam
many Thunks for the
night hime Buy In amazed
at the ABC chiening
Thunks guin for
your thought Juness. nike
American Broadcasting Company 1717 DeSales Street, N.W. Washington, D.C. 20036 Telephone 202 887-7777
19 May, 1982
Dear Mike:
Thanks again for all your help and patience.
The video from our April trip looks good and will work well
with the additional material.
Please do not consider this official Nightline bag a bribe or
even a gift that must be reported. It's just that some of us
are sentimental. I mean when someone uses lines like: 'my 7-year
old really wants one ' how could we refuse!
We look forward to seeing you on Nightline. And we're most
appreciative of your thoughtfulness and cooperation.
Sincerely,
Pam Kahn
JOSEPH J. KEON, JR.
130 SOUTH JUNE STREET
LOS ANGELES, CALIFORNIA 90004
file
May 19, 1982
Mr. Michael Deaver
4521 Dexter Street, N.W.
Washington, D.C. 20007
Dear Mike:
I so much enjoyed sitting at your table and
having the chance to visit with you again.
Sally and I couldn't have been more thrilled
in spending that very special evening at the
White House.
We hope to see you and Caroline soon again.
We are all so very proud of you.
Regards,
Joe
THE WHITE HOUSE
WASHINGTON
May 19, 1982
Dear Kent:
Unfortunately, I cannot make an ex-
ception. The President must remain
neutral in all primaries, and if we
do something special for you while we
are in California, we would be bending
the rules.
I am sure you can understand our position.
Warm regards,
MICHAEL K. DEAVER
Assistant to the President
Deputy Chief of Staff
Mr. Kent Lloyd
Kent Lloyd for Treasurer Committee
1000 Quail #290
Newport Beach, CA 92660
KENTLLOYD
for State Treasurer
May 18, 1982
m sorry but Princlar Bragra
EXPRESS MAIL
Mr. Michael Deaver
Assistant to the President and
Deputy Chief of Staff
The White House
Washington, D.C. 20500
Dear Mike:
It has been just over six weeks since I resigned from my post as
Deputy Undersecretary of Management in the U.S. Department of
Education and returned to California to enter the race for the
Republican nomination for State Treasurer in the June 8 primary.
I am pleased to say that the campaign is going extremely well.
I have received the endorsement of a majority of the Republican
Congressional, State Senate and State Assembly for my candidacy
and am considered to be the front runner against Jesse Unruh for
the June election (see materials enclosed).
Next Tuesday evening, May 25, the President will be at the Century
Plaza Hotel in Los Angeles for a Republican fund raising event.
At that time candidates will undoubtedly be introduced. Would it
be possible, in view of my past 15 months of service with the Ad-
ministration as a Presidential appointee, to be recognized by
President Reagan in some special way? For example, could I be
the President's guest at any pre-receptions that are arranged?
Could Tirso Del Junco or other party leaders be notified of my
special relationship with the President? I would appreciate any
advice and help you might provide on this subject. This will be
the last big event before the June 8 primary.
Thank you for your assistance.
Best wishes,
Kent
Kent Lloyd
KL:d
Enclosures
Paid for by Kent Lloyd for Treasurer Committee. 1000 Quail #290,
Newport Beach, CA 92660 I.D. #821656 Telephone (714) 752-5447
THE WHITE HOUSE
WASHINGTON
May 19, 1982
Dear Marvin:
I received your note regarding press re-
lations in the White House. While I may
sympathize with your position, I am afraid
I had nothing to do with the White House
press pool participation.
You refer in your letter to "your staff",
however, Larry Speakes and the White House
press staff do not report to me. I have no
line authority over their activities. They
report to the Chief of Staff.
I am sure you will be hearing from Jim Baker
shortly.
Sincerely,
MICHAEL K. DEAVER
Assistant to the President
Deputy Chief of Staff
Mr. Marvin L. Stone
Editor
U.S. News & World Report
2300 N Street, N.W.
Washington, D.C. 20037
BCC: m Balen
mr. meese
I Giger
L.Spephes L.
U.S. News & World Report
wASHINGTON
MARVIN L. STONE
2300 N STREET, N.W. WASHINGTON, D.C. 20037
EDITOR
May 18, 1982
Mr. Michael Deaver
Deputy Chief of Staff
The White House
1600 Pennsylvania Ave., N.W.
Washington, D.C. 20500
Dear Mr. Deaver:
After 16 months of harmonious relations with the Reagan White House, our
reporters have run into a situation that is hampering their ability to do their
jobs properly. I am referring to the decision of your staff to abolish the tra-
ditional magazine pool rotation.
We realize that these new rules were imposed in order to bring order to photo
opportunities and other events involving the President. But since our magazine
reporters were not part of the problem that you were trying to solve, we object
to being part of the solution.
Some people on your staff argue that pools must be limited to one print re-
porter because they have recently been restricted to one broadcaster reporter.
These people do not understand the fundamental differences between magazines and
newspapers. All broadcast reporters depend on the same thing--a clip of tape.
But in covering the President, magazine reporters are not looking for the same
thing as newspaper reporters. In fact, people read our magazine because we pro-
vide information they do not read in newspapers. Our reporters are looking for
themes, analysis and detail that newspaper reporters ignore. This is why maga-
zine pools were established in the first place.
In addition, we object that this new policy was imposed upon us by your staff
without any effort to consult us. We had no opportunity to present our point of
view in advance.
We hope you will reconsider this new policy, which we think creates a needless
point of contention in what has been a good professional working relationship between
our magazine and the White House. At the very least, we'd like an opportunity to
discuss it with you in person.
I am sending a copy of this letter to Messrs. Baker and Meese, lest they wonder
why, in the future, newsmagazine coverage of the White House is suffering.
Sincerely,
Marv Store
CC: James Baker
Edwin Meese
MLS/mlf
THE WHITE HOUSE
WASHINGTON
May 19, 1982
Dear Marvin:
I received your note regarding press re-
lations in the White House. While I may
sympathize with your position, I am afraid
I had nothing to do with the White House
press pool participation.
You refer in your letter to "your staff",
however, Larry Speakes and the White House
press staff do not report to me. I have no
line authority over their activities. They
report to the Chief of Staff.
I am sure you will be hearing from Jim Baker
shortly.
Sincerely,
hike
MICHAEL K. DEAVER
Assistant to the President
Deputy Chief of Staff
Mr. Marvin L. Stone
Editor
U.S. News & World Report
2300 N Street, N.W.
Washington, D.C. 20037
U.S. News & World Report
WASHINGTON
MARVIN L. STONE
2300 N STREET, N.W. WASHINGTON, D.C. 20037
EDITOR
May 18, 1982
Mr. Michael Deaver
Deputy Chief of Staff
The White House
1600 Pennsylvania Ave., N.W.
Washington, D.C. 20500
Dear Mr. Deaver:
After 16 months of harmonious relations with the Reagan White House, our
reporters have run into a situation that is hampering their ability to do their
jobs properly. I am referring to the decision of your staff to abolish the tra-
ditional magazine pool rotation.
We realize that these new rules were imposed in order to bring order to photo
opportunities and other events involving the President. But since our magazine
reporters were not part of the problem that you were trying to solve, we object
to being part of the solution.
Some people on your staff argue that pools must be limited to one print re-
porter because they have recently been restricted to one broadcaster reporter.
These people do not understand the fundamental differences between magazines and
newspapers. All broadcast reporters depend on the same thing--a clip of tape.
But in covering the President, magazine reporters are not looking for the same
thing as newspaper reporters. In fact, people read our magazine because we pro-
vide information they do not read in newspapers. Our reporters are looking for
themes, analysis and detail that newspaper reporters ignore. This is why maga-
zine pools were established in the first place.
In addition, we object that this new policy was imposed upon us by your staff
without any effort to consult us. We had no opportunity to present our point of
view in advance.
We hope you will reconsider this new policy, which we think creates a needless
point of contention in what has been a good professional working relationship between
our magazine and the White House. At the wer least, we'd like an opportunity to
discuss it with you in person.
I am sending a copy of this letter to Messrs. Baker and Meese, lest they wonder
why, in the future, newsmagazine coverage of the White House is suffering.
Sincerely,
Marv STORE
cc: James Baker
Edwin Meese
MLS/mlf
THE WHITE HOUSE
WASHINGTON
May 20, 1982
Dear Dr. Sanjurjo:
Thank you for your recent letter. I
appreciate your support for President
Reagan and your concern for the con-
tinued success of his economic program.
You can be sure that I will keep your
comments in mind during discussions
with my colleagues here in Washington.
With best wishes,
Sincerely,
MICHAEL K. DEAVER
Assistant to the President
Deputy Chief of Staff
R. R. Sanjurjo, D.D.S.
601 San Antonio Avenue
Coral Gables, FL 33146
AREA CODE 305
PHONE 667-7104
R. R. SANJURJO, D. D. S.
601 SAN ANTONIO AVENUE
CORAL GABLES, FLORIDA 33146
May 8,1982
Mr. Michael Deaver
The White House
Washington, D.C.
Dear Mr. Deaver:
Drexel Burnam's Ad in yesterday;s Wall Street Journal
had the painest truth I have seen in a long time.
That today's economic problems are blamed on
President Reagan is well known / as a political ploy.
But all the adversaries are determined that the truth
not be known, and at times it seems that the Administration
is loosing the propaganda effort.
I sincerely hope that this unique opportunity is not
lost because of failure to correct a shortcoming.
THE WHITE HOUSE
WASHINGTON
May 20, 1982
Dear Joe:
Many thanks for your note enclosing
Mrs. Collier's proposal for a 20% tariff
on all manufactured goods as a method to
control deficits, interest rates and un-
employment. I'll review her recommendations
carefully and share them with some of our
folks.
I'm grateful for your bringing her thoughts
to my personal attention.
Sincerely,
MICHAEL K. DEAVER
Assistant to the President
Deputy Chief of Staff
Mr. Joe M. Rodgers
P.O. Box 121086
Nashville, TN 37212
THE WHITE HOUSE
WASHINGTON
D-R-A-F-T
DK
Dear Joe:
Many thanks for your note enclosing Mrs. Collier's proposal
for a 20% tariff on all manufactured goods as a method to
control deficits, interest rates and unemployment. I'll
review her recommendations carefully and share them with
some of our folks.
I'm grateful for your bringing her thoughts to my personal
attention.
Sincerely,
Michael K. Deaver
Deputy Chief of Staff
Mr. Joe M. Rodgers
P. O. Box 121086
Nashville, Tennessee 37212
bcc: Weidenbaum
Regan
Brock
Harper
Dubation
Ken
1
lav 10, 1082
Ms. Shirley Moone
Administrative Assistant
to Mike Deaver
The White House
Washington, DC 20500
Dear Shirley:
The attached letter and "nough draft" are self-explanatory.
no you think I would be asking too much of Mike to take the
time to read these three pages? 11m, of course, not asking
support of irs. Collier's recommendation. It would help me if
sho knew that ! had reached someone 25 bigh un as Mike to at
least Listen to her necommendations. ! will, of course,
completely understand if you do not think ! should make this
request. If he does read the attached, then it would also be
approciated if he could get someone to write Mrs. Collier
saying that he had read the information and is taking it under
advisement.
Thanks for letting me continue to be a best. Look forward to
seeing you again.
Sincerely,
The Joe 1. Rodgers
JMR/hf
Attachments
P.O. Box 121086 Nashville, Tenn. 37212 Phone 615-329-0020
SUBSIDIARY:
NATIONAL INDUSTRIES INC.
NATIONAL MANAGEMENT, INC.
April 28, 1982
Mr. Joe Rogers
P.O. Box 121086
Nashville, TN 37212
Dear Joe:
Ben and I have made our reservations for the dinner on May 4th
and look forward to seeing you there.
I was in Washington last week and talked to many of the Congressmen
on the trade sub-committee and hopefully I will stay over and testify
in some of the hearings on the trade bills in Washington. I was
really surprised to find out that there were about 200 different
type bills introduced, with most of them being reciprocity or local
content. I am enclosing one very "rough" outline that I would
propose to ask the President to read rather than me having to
fumble through alot of talking.
I did speak with Senator Laxalt and gave him copies of these also
and he listened very intently and was quite cordial. Needless to
say he made no committments but he did question me about Brock and
Baldridge and their attitude towards this. I told him that I
thought Ambassador Brock and Secretary Baldridge were fantastic
cabinet members and would follow the President's lead but if the
President's thinking changes, it would have to probably come from
someone like him or some of the President's closest friends.
I really appreciate the time you spent with us and am sorry I didn't
have this brief synopsis when I was there.
See you in Washington.
Sincerely,
NATIONAL INDUSTRIES, INC.
June M. Collier
JMC/1p
Enclosure
P.O. Box 3528/2745 Gunter Park Drive West/Montgomery, Alabama 36109/(205) 277-1551
THE AMERICAN DILEMMA
I. EXISTING MAJOR PROBLEMS
1. High Federal Deficit
2. High Interest Rate
3. High Unemployment Rate
With these three conditions existent, they feed upon themselves in the
following cycle:
High Deficit
High Unemployment
High Interest
We are exporting jobs and importing welfare!
Hand-operation productivity is the same world wide.
Technology - hardware and software, is extremely portable.
You one time buy the "package" to produce your own.
"One point of employment is equal to 25 billion dollars worth of
deficit". (Ronald Reagan).
(1) Low skill level people connot "trickle up" to high tech jobs.
(2) Without these jobs, the backbone of our socio-economic
structure, we will have a deficit.
(3) With this deficit, interest rates will stay high.
This cycle must be broken!!
JUNE M. COLLIER
National Industries, Inc.
P. O. Box 3528
Montgomery, AL 36109
Page 2
April 26, 1982
The American Dilemma
II. PROPOSED CURES:
There are currently three types of bills before the Congress dealing
with this problem. Here is why each of will not break the cycle.
A. Reciprocity many different kinds. This will not work
because it assumes that other nations will buy goods from the U.S. when, in
essence, they cannot afford to buy their own products. All of our Congressmen
and Senators need to realize that the U.S. is the world market. Can you name
a country that likes us or that buys anything from us unless by necessity?
B. Local Content Bill - this is the most inflationary bill in that
inflation will rise as long as the term of the bill. Local content simply
means that a product has to be produced in the United States no matter what
the cost. This is wrong, and will clearly cause inflation.
C. Restrictions or other limitations - same as local content. It
will drive the price up on whatever is restricted. This is definitely not
the solution.
III. THE SOLUTION - - TARIFFS
A 20% tariff on all manufactured goods, not just autos, is the only
effective solution. It would be a one time price increase applied only to
manufactured goods. With no limitations, restrictions or quotas, U.S. industry
will have to work hard, find innovations, modernize, etc. in order to remain
competitive while the tariff is in place. This will actually only be "labor
parity" for labor intensive industries.
A tariff on manufactured goods imported into the United States will
achieve a parity between approximately $1.00 per hour and what we think
JUNE M. COLLIER
National Industries, In.
Montgomerv. AL
Page 3
April 26, 1982
The American Dilemma
is fair for our American Standard of living.
(1) The deficit will go down.
(2) Interest will go down.
(3) Unemployment will fall.
Tariffs on manufactured goods tend to be acceptable to our older
people and other people on fixed incomes in that these people generally do
not buy new homes, new cars, etc. Their chief concern is food, medicine and
power bills.
Tariffs will be easy to administer and will generate immediately needed
revenue. The three other alternatives discussed above would be a bureaucratic
blessing and an American nightmare.
The tariff proposal should be accompanied by legislation calling for a
40% limitation on non-American ownership so that other nations will not be
able to build in the U.S.; taking their capital and corporate profits back to
their own country. We must have an America saved for Americans.
JUNE M. COLLIER
National Industries, Ir
P.O. Box 3528
Montgomery, AL
THE WHITE HOUSE
WASHINGTON
May 20, 1982
Dear Mr. White:
Thank you for your recent message. I appreciate the
concern which prompted you to write.
Administration officials have recently met with represen-
tatives of the construction industry regarding possible
changes in the completed contract method of accounting.
During that meeting industry representatives described
what they believed to be the undesirable and unintended
consequences of changing the existing law. Officials
within the Treasury Department have since undertaken a
review of the proposed changes.
I was grateful to have the benefit of your comments and
suggestions concerning the completed contract method of
reporting taxable income. You can be sure that your
message will receive serious attention.
With best wishes,
Sincerely,
MICHAEL K. DEAVER
Assistant to the President
Deputy Chief of Staff
Mr. W. J. White
President, Walsh Construction
Thorndale Circle
Darien, CT 06820
POSTA
W.I WHITE, PRESIDENT, WALSH CONST
THORNDALE CIRCLE
western union
Mailgram
UNITED
SERVICE ®
DARIEN CT 06820
U.S.MAIL
1-0325108134 05/14/82 ICS IPMMTZZ CSP WHSA
2036557711 MGM TDMT DARIEN CT 353 05-14 0119P EST
MICHAEL K DEAVER, DEPUTY CHIEF OF STAFF
ASSISTANT TO THE PRESIDENT
WHITE HOUSE
WASHINGTON DC 20500
IMMEDIATE AND STRONG ACTION IS NECESSARY TO STOP THE TREASURY
DEPARTMENT FROM PROCEEDING WITH ITS PROPOSALS TO ABOLISH THE
COMPLETED CONTRACT METHOD OF TAX ACCOUNTING PRESENTLY UTILIZED BY
CONSTRUCTION COMPANIES. WE RESPECTFULLY SOLICIT YOUR SUPPORT AGAINST
THESE PROPOSALS AND URGE THAT YOU EXERT YOUR EFFORTS TO STOP THESE
TREASURY DEPARTMENT PROPOSALS FROM BECOMING EFFECTIVE. FOR OVER 50
YEARS THE COMPLETED CONTRACT METHOD OF TAX ACCOUNTING HAS BEEN
RECOGNIZED AS A NECESSARY AND EQUITABLE METHOD FOR CONTRACTORS TO USE
TO COMPUTE THEIR TAX RESPONSIBILITIES. THIS HAS BEEN so BECAUSE OF
THE UNIQUE NATURE OF INHERENT RISKS IN CONSTRUCTION. PROFIT, IF ANY,
CANNOT BE KNOWN UNTIL ALL COSTS ARE FINALIZED. IN ADDITION,
RETENTIONS AGAINST PAYMENT BY OWNERS INCLUDING THE UNITED STATES
GOVERNMENT HOLD BACK THE PAYMENT OF ANY PROFIT UNTIL THE FINAL
PAYMENT. THE COMPLETED CONTRACT METHOD OF TAX ACCOUNTING FOR
CONSTRUCTION IS NOT A TAX DODGE, A TAX LOOPHOLE, OR A TAX SHELTER OF
ANY KIND. WHAT IT REALLY DOES IS PERMIT A CONTRACTOR TO ONLY PAY ITS
TAXES ON PROFITS AFTER THE CONTRACTOR CAN REASONABLY KNOW WHAT THE
PROFITS REALLY ARE. TO REQUIRE A CONTRACTOR TO PAY TAXES BEFORE JOB
COMPLETION ONLY ADDS TO THE INFLATION SPIRAL FOR IT FORCES A
CONTRACTOR TO BORROW MORE MONEY TO PAYS ITS TAXES BEFORE THE
CONTRACTOR IS PAID ITS PROFITS, IF ANY. PAYMENT WHICH THE CONTRACTOR
RECEIVES PRIOR TO THE FINAL PAYMENT ARE REALLY REIMBURSEMENT TO THE
CONTRACTOR OF COSTS HE HAS ALREADY HAD TO PAY FOR LABOR, MATERIALS
AND EQUIPMENT. CONSTRUCTION METHODS AND TECHNIQUES HAVE IMPROVED
TREMENDOUSLY OVER THE 50 YEARS PLUS SINCE THE COMPLETED CONTRACT
METHOD OF TAX ACCOUNTING WAS RECOGNIZED. BUT THE REALITIES OF THE
UNIQUE INHERENT RISKS OF THIS INDUSTRY ARE STILL THE SAME - NO PROFIT
IS EARNED UNTIL THE LAST COSTS ARE PAID - AND THE MONEY IS IN THE
BANK. WE URGENTLY SOLICIT YOUR SUPPORT TO DEFEAT THESE TOTALLY
INEQUITABLE PROPOSALS OF THE TREASURY DEPARTMENT.
SINCERELY YOURS
WJ WHITE, PRESIDENT, WALSH CONSTRUCTION CODIV OF GUY F ATKINSON co
THORNDALE CIRCLE
DARIEN CT 06820
13:25 EST
MGMCOMP
TO REPLY BY MAILGRAM, SEE REVERSE SIDE FOR WESTERN UNION'S TOLL FREE PHONE NUMBERS
THE WHITE HOUSE
WASHINGTON
May 20, 1982
Dear Mr. Schneider:
Thank you for your recent message. I appreciate the
concern which prompted you to write.
Administration officials have recently met with represen-
tatives of the construction industry regarding possible
changes in the completed contract method of accounting.
During that meeting industry representatives described
what they believed to be the undesirable and unintended
consequences of changing the existing law. Officials
within the Treasury Department have since undertaken a
review of the proposed changes.
I was grateful to have the benefit of your comments and
suggestions concerning the completed contract method of
reporting taxable income. You can be sure that your
message will receive serious attention.
With best wishes,
Sincerely,
MICHAEL K. DEAVER
Assistant to the President
Deputy Chief of Staff
Mr. Harvey Schneider
Vice President
Schreiber Corporation
P.O. Box 38119
Detroit, MI 48238
MKB->
(313) 864-4900
schreil
oration
roofing and sheet metal contractors
detroit, michigan 48238
2239 FENKELL, P.O. BOX 38119
SINCE 1916
May 12, 1982
The Honorable Michael K. Deaver
Deputy Chief of Staff and
Assistant to the President
The White House
Washington, D.C. 22500
Dear Sir;
The Schreiter Corporation, roofing and sheet metal contractors, cf
Detroit, Michigan is strongly opposed to the elimination of the
completed contract method of accounting.
We urge you to do all within your power to prevent this traditional
method of accounting for the construction industry from teing
eliminated for the following reasons:
1. Unknown variables not found in other industries results in an
ambiguous profit margin in the construction industry where final
financial figures are not known until the job is completed and
accepted.
2. Contractors must expend large sums of capital in advance of
any contract, therefore, stretching the financing capability of
construction contractors on a regular basis.
3. Virtually all construction contracts have retainage
provisions. Consequently, the profit element of a construction
contract is not received until retainage is released.
4. The completed contract method has worked successfully in the
construction industry for over 60 years. Flimination of this
option could result in defaults, reduction of a contractor's
business operations, or the possibility of forcing a contractor
to seek outside financing--an action that may not be economically
feasible especially in light of the current economic climate.
Thank you fcr ycur cooperation.
Yours very truly,
SCHRFIBER CORPORATION
Harvey Schneider, P.F.
Vice President
KORN/FERRY INTERNATIONAL
Ronald H. Walker
1825 K Street, N.W. Suite 301
Managing Vice President
Washington, D.C. 20006
May 20, 1982
The Honorable Michael K. Deaver
Deputy Chief of Staff and
Assistant to the President
The White House
file
Washington, D.C. 20500
Dear Mike:
It was good to see you last evening, and I know how
much it meant to Mike to have you drop by. I'm also
very aware of how busy and hectic your schedule must
be, and I'm grateful as well.
All in all it was a good turnout. Mike saw some old
friends and made some new ones, and hopefully it will
stand him in good stead as he moves into this new
C unity. I know he has his hands full with the
current trip in Europe. I wish you, him and the
President well.
Perhaps when you get back we can have lunch -- I'll
take the initiative and call.
With warm regards.
Sincerely yours,
San
Ronald H. Walker
THE WHITE HOUSE
WASHINGTON
May 20, 1982
Dear Tom:
Thank you for your letter. It was good
hearing from you again.
I appreciate your concern about the Law
of the Sea Conference. The work which that
group undertakes will be of great importance
both to the development of international law
and to the future industrial uses of the raw
materials of the ocean floor.
We, too, have been concerned since we first
came into office. I feel confident that we're
on top of this situation.
Many thanks.
Sincerely
mine
MICHAEL K. DEAVER
Assistant to the President
Deputy Chief of Staff
Mr. Thomas J. Wesley, Jr.
Suite 1500
134 Peachtree Street, N.W.
Atlanta, GA 30303