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Ronald Reagan Presidential Library Digital Library Collections This is a PDF of a folder from our textual collections. Collection: Roberts, John G.: Files Folder Title: JGR/Press Conferences (4 of 6) Box: 43 To see more digitized collections visit: https://reaganlibrary.gov/archives/digital-library To see all Ronald Reagan Presidential Library inventories visit: https://reaganlibrary.gov/document-collection Contact a reference archivist at: [email protected] Citation Guidelines: https://reaganlibrary.gov/citing National Archives Catalogue: https://catalog.archives.gov/ THE WHITE HOUSE WASHINGTON November 4, 1985 MEMORANDUM FOR TOM GIBSON DIRECTOR OF PUBLIC AFFAIRS FROM: JOHN G. ROBERTS, JR. Dr. ASSOCIATE COUNSEL TO THE PRESIDENT SUBJECT: Talking Points on October Economic and Domestic Highlights Counsel's office has reviewed the above-referenced talking points and has no objection to them from a legal perspective. CC: David L. Chew ID # CU WHITE HOUSE CORRESPONDENCE TRACKING WORKSHEET o . OUTGOING N - INTERNAL 1 - INCOMING Date Correspridance Received (YY/MM/DD) 1 / Name of Correspondent: Dave Clew MI Mall Report User Codes: (A) (B) (C) Subject: Julking Paints an actaber Economic and Damestic Highlights ROUTE TO: ACTION DISPOSITION Tracking Type Completion Action Date of Date I gency I # VY/MM/DD Response Date YY/MM/DD Custome ORGINATOR 85,11,01 I / Referral Note: cut 18 R 15,11,01 s 15,11,04 Referral Note: 12N 1 / / 1 Referral Nate: / / / / Reterral Note: / 1 / I Referral:Note: ACTION CODES: DISPOSITION CODES: A Appropriate Action I Info Copy/Oniy/No Action Metobeary A -Answared C -Completed C Domment/Recommendation R Direct Reply w/Copy B . Non-Special Referral S Suspended D Draft Response S For Signature F Furnish Fact Sheet x . Interim Raply to be used as Enclosure FOR OUTODING CORRESPONDENCE: Type of Response # Initials of Signer Code = "A" Completion Date = Date of Outgoing Comments: Keep this worksheet attached to the original incoming letter. Send all routing updates to Central Reference (Room 75, DEOB). Always return completed correspondence record to Central Files. Refer questions about the correspondence tracking system to Central Reference, ext. 2590. 5/81 Document No. WHITE HOUSE STAFFING MEMORANDUM DATE: 11-01-85 ACTION/CONCURRENCE/COMMENT DUE BY: Noon on 11-04-85 SUBJECT: TALKING POINTS ON OCTOBER ECONOMIC & DOMESTIC HIGHLIGHTS ACTION FYI ACTION FYI VICE PRESIDENT LACY REGAN McFARLANE MILLER OGLESBY BUCHANAN RYAN CHAVEZ SPEAKES CHEW P SS SPRINKEL DANIELS SVAHN FIELDING THOMAS FRIEDERSDORF TUTTLE HENKEL HICKEY HICKS KINGON REMARKS: Please submit any remarks/comments directly to Tom Gibson, with informational copies to my office, by noon on Monday, November 4. Thank you. RESPONSE: David L. Chew Staff Secretary Ext. 2702 THE WHITE HOUSE Resultations WASHINGTON November 1, 1985 MEMORANDUM FOR DAVID CHEW FROM: TOM GIBSON TG. SUBJECT: Talking Points on Economic and Domestic Highlights for the Month of October Attached, for staffing, are talking points covering good economic and domestic news for the month of October. They are for distribution to agency spokesmen. I'd like to put these out as soon as possible. Thanks very much. OCTOBER HIGHLIGHTS President's popularity at record highs. President Reagan heads toward the Geneva summit with strong popular support for his handling of foreign affairs. In a Washington Post-ABC News poll, the President's overall approval rating was 63 percent; and 64 percent approved of the President's handling of US-USSR relations, the highest rating since the Post-ABC News poll began asking the question in 1982. Grenada prospers under freedom. Two years after the October 25 rescue of Grenada, U.S. technical and economic aid there has led to an unprecedented boom. U.S assistance has totaled $60 million to date. Inflation whipped. For the twelve months ending September 1985, the consumer price index rose just 3.2 percent, the slowest rise since a 3 percent inflation rate in 1967. Wholesale prices plunged 0.6 percent in September, the sharpest decline since January 1983. Job growth continues at steady pace: 415,000 persons were added to U.S. payrolls in October 1985, the largest one-month gain in employment since February 1985. Total employment (including civilian and military) now stands at an all-time high: 109.6 million. About 8.8 million new jobs have been created since November 1982. Continued labor-management cooperation yields increased productivity and unwinds the wage-price spiral. Chrysler and Wheeling-Pittsburgh Steel workers returned to work in October. Major collective bargaining agreements in the first nine months of 1985 provided 2.3 percent first-year wage hikes, the lowest first-year contract increase since the Labor Department's survey began in 1962. The Labor Department also reported in October that total nonfarm business productivity rose at an annual rate of 3.0 percent in the third quarter of 1985. Trimming Government waste. On October 28, 1985, President Reagan received the final report of the Grace Commission, the President's Private Sector Survey on Cost Control. The Reagan Administration has adopted, proposed, or is scheduled to propose over 80 percent of the Commission's recom- mendations to cut waste and improve efficiency in the Federal Government. Real opportunity for black Americans. A Census Bureau survey released in October showed that the number of black-owned businesses in the U.S. rose 47 percent between 1977 and 1982, from 231,203 to 339,239. According to a report in USA Today, private economists estimate there could be 434,904 black businesses by year's end -- 88 percent more than in 1977. THE WHITE HOUSE WASHINGTON November 7, 1985 MEMORANDUM FOR TOM GIBSON DIRECTOR OF PUBLIC AFFAIRS FROM: JOHN G. ROBERTS, JR ASSOCIATE COUNSEL TO THE PRESIDENT SUBJECT: Talking Points on Social Security and Congressional Budget Crisis Counsel's Office has reviewed the above-referenced draft talking points, and finds no objection to them from a legal perspective. CC: David L. Chew ID # CU WHITE HOUSE CORRESPONDENCE TRACKING WORKSHEET OUTDOMS IN . INTERNAL I INCOMING Date Correspondence Received (YY/MM/DD) / / Name of Correspondent: Dave Chew MI Mall Report User Codes: (A) (B) (C) Subject: Taching points on social security and congressional Budget crises ROUTE TO: ACTION DISPOSITION Tracking Type Completion Action Date of Date Office/Agency chreff Name) Dote YY/MM/DD Response Code YY/MM/DD CUHOLL HORIGINATOR 85,11,07 / 1 Returnal Note: Cuat 18 R 85,11,07 585,11,07 - Note: COB 1 1 / / Referral Note: / 1 1 / - Referral Note: / / / - / Referrations: TS: ACTION CODES: DISPOSITION CODES: A Appropriate Action t Into Copy Only/No.Retion Necessary A Answored c -Completed C Comment/Recommendation R Direct Reply w/Dopy B Non-Special Referral s Buspended D Draft Response S For Signature F Furnish Fact Sheet X Interim Reply to be used as Enolosero FOR CORRESPONDENCE Type at Remoview Initials of Bigner Code = "A" Completion Date Date of Outgoing Comments: Keep this worksheet attached to the original Incoming letter. Send all routing updates to Contral Reference (Room 75, DEOB). Always return completed correspondence record to Central Files. Refer questions about the correspondence tracking system to Central Reference, ext. 2590. 561 Document No. WHITE HOUSE STAFFING MEMORANDUM DATE: 11-07 ACTION/CONCURRENCE/COMMENT DUE BY: C.O.B. Today SUBJECT: TALKING POINTS ON SOCIAL SECURITY & CONGRESSIONAL BUDGET CRISIS ACTION FYI ACTION FYI VICE PRESIDENT OGLESBY REGAN MILLER RYAN BUCHANAN SPEAKES CHAVEZ SPRINKEL CHEW P SS SVAHN DANIELS THOMAS FIELDING TUTTLE HENKEL Gibson HICKS KINGON LACY McFARLANE REMARKS: Please submit comments/remarks directly to Tom Gibson, with and information copy to my office by the end of today. Thank you. RESPONSE: David L. Chew Staff Secretary Ext. 2702 THE WHITE HOUSE WASHINGTON November 7, 1985 MEMORANDUM FOR DAVID CHEW FROM: TOM GIBSON it. SUBJECT: Talking Points/Issue Briefs on Recent Actions on Social Security and Congressional Delay on Government Fiscal Matters Attached, for staffing, are talking points/issue briefs on recent actions on Social Security and Congressional delay on government fiscal matters. Treasury and OMB have reviewed a first draft and have commented on the numbers and tone. Of course they should comment on this draft as well. I'd like to put these out as soon as possible. Thanks very much. SOCIAL SECURITY INTEGRITY PRESERVED On November 1 and 4, in the midst of a financial crisis spawned by continued Congressional bickering and inaction, the Administration took unprecedented steps to keep November's Social Security checks payable and on schedule. As required by law, Treasury Secretary Jim Baker redeemed some of the Social Security Trust Fund's assets -- U.S. Treasury certificates -- to raise money to pay benefits people need for rent, food, clothing and other necessities. The assets in the Trust Fund are there precisely for this purpose and will be restored. Social Security assets are not being used to pay other obligations of the Federal Government. The only alternative was to pay November's Social Security benefits out of general revenues which were inadequare -- and would accelerate the crisis, created by Congressional inaction, and cause the government to default. Playing Politics With Social Security As before, it appears that certain members of the Democratic Party -- who during the late 1970s ran the Social Security System into near bankruptcy -- are preying upon the fears of older Americans for cheap political advantage. Democrats hope to terrorize Social Security recipients into thinking their benefits are not secure. -This suits the short-term political whims of certain unscrupulous Democratic politicians, especially in the House leadership. The Solution: If Congress would stop its posturing, fulfill its obligations, and pass a debt ceiling bill and appropriations bills called for by law, all Americans would breathe easier and this Democrat-generated "scare plan" on Social Security would evaporate overnight. THE CONGRESSIONAL BUDGET CRISIS The Constitution gives Congress the power to collect revenues "to pay the Debts and provide for the common Defence and general Welfare of the United States." In the past, when Congress has delayed action on individual appropriation bills, the President has been required by law to shut down affected agencies. This time, the crisis is government-wide. Unless the Congress passes a debt ceiling extension bill, the Federal Government will run out of money by November 14. Federal checks to cover military salaries, pensions, student aid benefits, the bills of vendors, principal and interest on our national debt, or any of a multitude of government's obligations will bounce. The problem: Congress has completely abrogated its responsibility to set a Federal budget and pay the bills. Congressional Mismanagement and Delay This year, Congress failed to meet every deadline required by its own 1974 Budget Act to keep the Government running: First Concurrent Budget Resolution. Deadline: May 15, 1985. Action: August 1, 1985 -- two and one-half months late. Second Concurrent Budget Resolution. Deadline: September 15, 1985. Action: no action taken. Appropriation Bills. Deadline: September 30, 1985. Action: None passed by statutory deadline and only two passed to date. A temporary continuing resolution was substituted for all appropriations bills. It expires on November 15, 1985. Debt Ceiling Extension. Current Deadline: November 14, 1985. Action: Pending -- emergency actions by the Administration have covered Congressional inaction until November 14, 1985. The Solution: Congress should end its posturing and fulfill its Constitutional and statutory obligations and pass appropriations bills and debt ceiling legislation. Until Congress acts responsibly and breaks the current budget impasse, the President will take all available actions to sustain government services and ensure that Social Security checks are honored. THE WHITE HOUSE WASHINGTON November 12, 1985 MEMORANDUM FOR TOM GIBSON SPECIAL ASSISTANT TO THE PRESIDENT DIRECTOR, PUBLIC AFFAIRS FROM: ASSOCIATE COUNSEL TO THE PRESIDENT JOHN G. ROBERTS 822 SUBJECT: Talking Points Regarding Social Security and Budget Crisis Counsel's Office has reviewed the above-referenced talking points, and finds no objection to them from a legal perspective. CC: David L. Chew ID # CU WHITE HOUSE CORRESPONDENCE TRACKING WORKSHEET 0 - OUTSOING H INTERNAL 1 INCOMING Date Correspondence Received Y/MM/DD) / / Name of Correspondent: Daw caew MI Report User Codes: (A) (B) (C) Subject: Juching paints w sarial Security 1 Budget crises ROUTE TO: ACTION DISPOSITION Tracking Type Completion Action Date el Date Office/Agency (Staff Name) Code YY/MM/DD Response Code YY/MM/DD CUHOLL ORIGINATOR 65,11.12 / , Reterral Note: CUAT 18 B 15,11,17 $85,11,12 10am Referral Note: I I , - Referral Note: I I I / Reternal Note / 1 I I à Nove: ACTION CODES: DISPOSITION CODES: A . Appropriate Action 1 Into Copy Only/No Action Necessary A Answered B c Comment/Recommendation R Direct Reply w/Copy B * Non-Special Referral a discumpand D Draft Response S For Signature F Furnish Fact Sheet X Interim Reply to be used as Enclosure FOR OUTGOING CORRESPONDENCE: Type of Response initiate of Signer Code "A" Completion Date = Date of Outgoing Comments: Keep this worksheet attached to the original incoming letter. Send all routing updates to Central Reference (Room 75, OEOB). Always return completed correspondence record to Central Files. Refer questions about the correspondence tracking system to Central Reference, ext. 2590. 581 Document No. WHITE HOUSE STAFFING MEMORANDUM DATE: 11/11/85 ACTION/CONCURRENCE/COMMENT DUE BY: 10:00 a.m. TOMORROW 11/12 SUBJECT: TALKING POINTS RE SOCIAL SECURITY & BUDGET CRISIS ACTION FYI ACTION FYI VICE PRESIDENT OGLESBY REGAN MILLER RYAN BUCHANAN SPEAKES CHAVEZ SPRINKEL CHEW P SVAHN DANIELS THOMAS FIELDING TUTTLE HENKEL GIBSON HICKS KINGON LACY McFARLANE REMARKS: Please provide any comments/edits directly to Tom Gibson by 10:00 a.m. tomorrow, with an information copy to my office. Thank you. RESPONSE: David L. Chew Staff Secretary Ext. 2702 (This will be sent to Admin. spokesmen & editorial boards, etc. SOCIAL SECURITY INTEGRITY PRESERVED On November 1 and 4, in the midst of a financial crisis spawned by Congressional bickering and inaction, the Administration took unprecedented steps to keep November's Social Security checks payable and on schedule. As authorized by law, Treasury Secretary Jim Baker accelerated redemption of some of the Social Security Trust Fund's assets -- U.S. Treasury securities -- to raise money to pay Social Security benefits people need for rent, food, clothing and other necessities. The assets in the Trust Fund are there precisely for this purpose and are not being used to pay other obligations of the Federal Government. Any loss to the fund because of Congressional inaction can be cured by new legislation. Playing Politics With Social Security Some in the Democratic Party have tried to cast the actions by the Secretary of the Treasury as a partisan issue, and in so doing have terrorized Social Security recipients into thinking their benefits are not secure. The Solution: Despite Congressional posturing, the President is committed to keeping Social Security checks in the mail and payable. Congress must fulfill its obligations, pass debt ceiling legislation and work to restore -- not shake -- public confidence in the Social Security system. (This will go to Admin. surrogates only) THE CONGRESSIONAL BUDGET CRISIS The Constitution commits to Congress the powers (1) to collect revenues "to pay the Debts and provide for the common Defence and general Welfare of the United States," and (2) to "borrow Money on the Credit of the United States." In the past, when Congress has delayed action on individual appropriation bills, the President has been required by law to shut down affected agencies. This time, because of the debt limit, the impending crisis is government-wide. Unless Congress passes a debt ceiling extension bill by midnight November 14, the Federal Government will default November 15. Federal checks to cover pensions, military salaries, principal and interest on the national debt, student aid benefits and a multitude of government's obligations will bounce beginning on November 15. The cause of this potential financial crisis: Congress has refused to take the necessary action to enable us to pay our bills. Congressional Mismanagement and Delay This year, Congress failed to meet every deadline required by the 1974 Budget Act to keep the Government running: First Concurrent Budget Resolution. Deadline: May 15, 1985. Action: August 1, 1985 -- two and one-half months late. Appropriation Bills. Deadline: September 30, 1985. Action: Not a single one passed by statutory deadline and only two sent to the President to date -- Congress's own appropriation and the appropriation for Energy and Water. A temporary continuing resolution was substituted for the 11 other appropriation bills not yet passed. This, too, expires on midnight November 14, 1985. Debt Ceiling Extension. Current deadline: midnight November 14, 1985. Action: Pending -- emergency actions by the Administration have covered Congressional paralysis -- but only until midnight November 14, 1985. The Solution: Congress should cease dithering and fulfill its Constitutional and statutory obligations, and prevent the United States of America from going into default before the end of the week. THE WHITE HOUSE WASHINGTON November 13, 1985 MEMORANDUM FOR TOM GIBSON SPECIAL ASSISTANT TO THE PRESIDENT DIRECTOR, PUBLIC AFFAIRS FROM: ASSOCIATE COUNSEL Dr TO THE PRESIDENT JOHN G. ROBERTS SUBJECT: Talking Points -- Education Vouchers Counsel's Office has reviewed the proposed talking points on the Equity and Choice Act of 1985. The Act raises serious and close questions under the Supreme Court's interpretation of the Establishment Clause. The Education Department advises that its Office of General Counsel has reviewed the Act and is confident of its constitutionality, but Adminis- tration spokesmen should expect and be prepared to answer questions on that score. CC: David L. Chew ID # CU WHITE HOUSE CORRESPONDENCE TRACKING WORKSHEET o - OUTGOING H . INTERNAL I - INCOMING Date Correspondence Received (YY/MM/DD) / / Name of Correspondent: Dave Chew MI Mall Report User Codes: (A) (B) (C) Subject: Talking Points- Education Vouchers ROUTE TO: ACTION DISPOSITION Tracking Type Completion Action Date of Date Difice/Agency (Staff Planne) Code YY/MM/DD Response Code YY/MM/D CUHOLL ORIGINATOR / I / / Referrat Note: CUAT 18 B 851111/2 8 8511/42 Referral Note: 11AM / I / - Referral Note: / I I 7 Referral Note: / / I , Referral Note: ACTION CODES: DISPOSITION CODES: A - Appropriate Action á s Copy Mecessary A Answered C Completed C Comment/Recommendation R Direct Reply w/Copy B Non-Special Referral B "Susparided D Draft Response S For Signature F Furnish Fact Sheet X -Interim Reply to be used as Enclosure FOR OUTGOING CORRESPONDENCE: Type of Response = Initials of Signer Code "A" Completion Date = Date of Dutgoing Comments: Keep this worksheet attached to the original incoming letter. Send all routing updates to Central Reference (Room 75, DEOB). Always return completed correspondence record to Central Files. Refer questions about the correspondence tracking system to Central Reference, ext. 2590. 5/81 Document No. WHITE HOUSE STAFFING MEMORANDUM DATE: 11-12-85 ACTION/CONCURRENCE/COMMENT DUE BY: 11:00 a.m. 11-13-85 SUBJECT: TALKING POINTS ON EDUCATION VOUCHERS ACTION FYI ACTION FYI VICE PRESIDENT OGLESBY REGAN MILLER RYAN BUCHANAN SPEAKES CHAVEZ SPRINKEL CHEW SS SVAHN DANIELS THOMAS FIELDING TUTTLE HENKEL GIBSON HICKS KINGON LACY McFARLANE REMARKS: Please submit any comments/remarks directly to Tom Gibson by 11:00 a.m. tomorrow. Thank you. RESPONSE: David L. Chew Staff Secretary Ext. 2702 THE WHITE HOUSE WASHINGTON 12 November 12, 1985 MEMORANDUM FOR DAVID CHEW FROM: TOM GIBSON TG. SUBJECT: Talking Points on Education Vouchers Attached, for staffing, are draft talking points on the Administration's educational vouchers proposal, The Equity and Choice (TEACH) Act of 1985. The Administration bill is being unveiled by Secretary Bennett tomorrow. ADMINISTRATION INITIATIVE FOR EDUCATIONAL OPPORTUNITY The Equity and Choice Act of 1985 The Reagan Administration has unveiled The Equity and Choice (TEACH) Act of 1985, to provide choice in education through a voucher plan. This legislation, the most recent initiative in the Administration's longstanding campaign to promote excellence in education, will shortly be introduced in Congress. The Administration's proposed voucher system for educationally disadvantaged students (Chapter 1 participants) will enable low-income parents to exercise the right to choose the public or non-public school which best suits their children's needs. TEACH, announced by Education Secretary William Bennett on November 13, 1985, will provide funds directly to parents of educationally disadvantaged children. Greater involvement of parents will better serve both students and schools. TEACH is a sound response to the U.S. Supreme Court's Felton decision, which prohibits the provision of Chapter 1 services by public school teachers to children on religious school premises. Voucher funds go to parents, not teachers or schools, avoiding potential Constitutional entanglements. Benefits of TEACH The Administration's proposed legislation is a bold stroke for equal opportunity and educational excellence. TEACH fulfills the promise of Chapter 1 by expanding the range of choices available and addressing students' individual needs. TEACH gives poor families some of the educational choice already available to affluent families who can select a school through choice of neighborhood or choice of public school. The Administration's voucher proposal introduces some healthy competition into the American education system -- improving the quality of education in all schools, both public and non-public. Public Opinion and Choice According to a 1985 Gallup Poll, 59 percent of blacks and a similar majority of persons living in cemtral cities support an educational voucher system. THE WHITE HOUSE WASHINGTON November 13, 1985 MEMORANDUM FOR DAVID L. CHEW STAFF SECRETARY FROM: JOHN G. ROBERTS JJR ASSOCIATE COUNSEL TO THE PRESIDENT SUBJECT: Red Cross Press Release Counsel's Office has reviewed the above-referenced press release, and finds no objection to it from a legal perspective. ID # CU WHITE HOUSE CORRESPONDENCE TRACKING WORKSHEET . OUTGOING H - INTERNAL I - INCOMING Date Correspondence Received (YY/MM/DD) / / Name of Correspondent: Dave chew MI Mail Report User Codes: (A) (B) (C) Subject: Red Cross Press Release ROUTE TO: ACTION DISPOSITION Tracking Type Completion Action Date of Date Office/Agency Stall Name Code YY/MM/DD Response Code YY/MM/DD CUHOLL ORIGINATOR 85/1/13 / 1 Referral Note: QUATI8 R 85111113 s 85,1113 Referral Note: 11:30am I I / 1 - Referral Note: 1 / I I Reterral Note: If I I / Mete: #* ACTION CODES: DISPOSITION CODES: A Appropriate Action info Copy Only/No Action Recessary A Answered D Completed c Comment/Recommendation # Direct Reply w/Copy 3 . Non-Special Referral Б -Sumpended D Draft Response 16 For Signature F Furnish Fact Sheet 2 Interim Reply to be used as Enclosure FOR OUTSBING CORRESPONDENCE: Type of Response = Initials of Signer Code "A" Completion Date = Date of Outgoing Comments: Keep this worksheet attached to the original incoming letter. Send all routing updates to Central Reference (Room 75, OEOB). Always return completed correspondence record to Central Files. Refer questions about the correspondence tracking system to Central Reference, ext. 2590. 5/81 Document No. WHITE HOUSE STAFFING MEMORANDUM DATE: 11-13-85 ACTION/CONCURRENCE/COMMENT DUE BY: 11:30 a.m. TODAY SUBJECT: RED CROSS PRESS RELEASE ACTION FYI ACTION FYI VICE PRESIDENT OGLESBY REGAN MILLER RYAN BUCHANAN SPEAKES CHAVEZ SPRINKEL CHEW P SS SVAHN DANIELS THOMAS FIELDING TUTTLE HENKEL HICKS KINGON LACY McFARLANE REMARKS: Is the attached press release OK with your office to go this afternoon? RESPONSE: David L. Chew Staff Secretary Ext. 2702 THE WHITE HOUSE WASHINGTON NOV 13 November 13, 1985 MEMORANDUM FOR: DAVID CHEW FROM: FREDERICK J. RYAN, JR. 77R SUBJECT: Red Cross Press Release Today at 2:15 p.m., the President will meet with Red Cross Chairman George Moody and Red Cross President, Richard Schubert to discuss their $20 million disaster relief campaign. The fund-raising drive was announced on November 7 to ensure that the Red Cross can continue to meet disaster victims' needs. To date, the Red Cross has committed almost $48 million on a series of natural disasters that have hit the United States. This year is only the third time this century that five or more hurricanes have hit the U.S. mainland. President Reagan will also be doing a public service announcement and promoting various private sector initiatives that are being developed to assist them with their campaign. Attached is a draft press release we would like to have made available through the White House Press Office after the meeting today. THE WHITE HOUSE Office of the Press Secretary For Immediate Release November 13, 1985 President Ronald Reagan today presented the American Red Cross with a letter of support for its $20 million emergency disaster relief campaign announced November 7. Red Cross Chairman, George M. Moody, and President, Richard F. Schubert, accepted the letter urging Americans to give generously towards the fund-raising campaign launched to meet current and future disaster demands. The fund-raising drive was begun to ensure that the Red Cross can continue to meet disaster victims' needs. To date, the Red Cross has committed almost $48 million on a series of natural calamaties that have struck U.S. mainland and Puerto Rico since July 1, 1985. This year is only the third time this century that five or more hurricanes have hit U.S. mainland. The five hurricanes were "Bob," "Danny," "Elena," "Gloria," and "Juan." Other disasters such as fires, floods, chemical spill evacuations and the Puerto Rican mud slides have added to Red Cross expenditures. Since July 1, 1985 the Red Cross has operated 2,026 shelters housing 900,000 people. More than 22,000 Red Cross volunteers and paid staff have fed more than 4 million disaster victims. Approximately 31,400 families have received Red Cross financial assistance. The Red Cross expects to spend almost $10 million on the current relief operation in Virginia, West Virginia, Maryland and Pennsylvania. More than 4,500 Red Cross volunteers and paid staff served 25,000 meals and distributed 5,000 cleanup kits to families affected by the floods. President Reagan will also be doing a public service announcement and promoting other private sector initiatives to support the American Red Cross. People wishing to help disaster victims can send donations to their locat Red Cross chapters or to the American Red Cross, "Emergency Disaster Relief Campaign," P.O. Box 37243, Washington, D.C. 20013 THE WHITE HOUSE WASHINGTON January 3, 1986 MEMORANDUM FOR TOM GIBSON SPECIAL ASSISTANT TO THE PRESIDENT DIRECTOR, PUBLIC AFFAIRS FROM: JOHN G. ROBERTS DR ASSOCIATE COUNSEL THE PRESIDENT SUBJECT: Draft Domestic Briefing Materials Counsel's Office has reviewed the draft domestic briefing materials. It is our understanding that the first item in the third bullet on the page entitled "Homeless" will be revised to delete any numerical description (the number of beds has been the subject of litigation) and to delete the description of the shelter as a "Navy" facility. CC: David L. Chew ID #. CU WHITE HOUSE CORRESPONDENCE TRACKING WORKSHEET 0 - DUTOSING # -INTERNAL 1 . INCOMING Date Commissione Received (18 Y/MM/DD) 1 / Name of Correspondent: class Clew MI Mail Report User Codes: (A) (B) (C) Subject: materiaes Draft Domestic Briebing ROUTE TO: ACTION DISPOSITION Traching Type Completion Action I 1 of Date Office/Agency (Staff Name) Code YYA Response Code YY/MM/DD CUHOLL ORIGINATOR 84,01,03 I / Referral Note: cuat 18 B 86,01,03 586,01,03 Referral Note: 12N / 1 / / - Referral Note: / / 1 1 Referral Note: / / / I Referral Note: ACTION CODES: DISPOSITION CODES: A Appropriate Action I Necessary A Answered C Completed C . Comment/Recoshmenstation R STreet Raply w/Copy B Non-Special Referral $ Suspended D Draft Response 8 -Por Signature F Furnish Fact Sheet x -datorim Raply to be used as Explosure FOR OUTGOING CERRESPONDENCE: Type of Response = Initials of Signer Code = "M" Completion Date = Date of Outgoing Comments: Keep this worksheet attached to the original incoming letter. Send all routing updates to Central Reference (Room 75, OEOB). Always return completed correspondence record to Central Files. Refer questions about the correspondence tracking system to Central Reference, ext. 2590. MB1 Document No. EXTREME CLOSE HOLD WHITE HOUSE STAFFING MEMORANDUM DATE: 1/2/86 ACTION/CONCURRENCE/COMMENT DUE BY: - NOON 1/3/86 SUBJECT: DRAFT DOMESTIC BRIEFING MATERIALS ACTION FYI ACTION FYI VICE PRESIDENT POINDEXTER REGAN OGLESBY MILLER F RYAN BUCHANAN SPEAKES CHAVEZ SPRINKEL CHEW P SS SVAHN DANIELS THOMAS f FIELDING TUTTLE HENKEL GIBSON HICKS BRASHEAR KINGON LACY REMARKS: Please submit your commentson the attached directly to Tom Gibson in Room 160 by noon tomorrow. Thank you. w/ info copy to our office. RESPONSE: EXTREME CLOSE HOLD David L. Chew Staff Secretary Ext. 2702 PRINCIPAL ACHIEVEMENTS OF 1985 Economy America enters her fourth year of economic recovery and expansion. Tax Reform Because of RR's personal involvement, the process has been kept alive by House passage of most sweeping reform legislation in more than 40 years. Markers have been set out for Senate action in 1986. Gramm-Rudman-Hollings Most sweeping anti-deficit legislation in history. RR committed to work with Congress to meet deficit targets. Farm Policy Market-oriented approach reinstated, reversing failed policies of past administrations. Geneva Summit Growing bipartisanship in foreign policy: Congress voted $1.5 billion for 21 additional MX missiles, bringing the total to 50. In June, Congress voted to resume aid to freedom- fighters in Nicaragua, reversing the House vote in May. Clark Amendment was repealed, allowing the U.S. to aid those on the side of freedom im Angola (Savimbi/UNITA) Free and Fair Trade RR stemmed tide of protectionism by tough enforcement of existing trade laws and multilateral steps to revalue currencies. Achille Lauro Demonstration of U.S. resolve to bring terrorists to justice, wherever they hide. ECONOMIC UPDATE Entering the fourth year of economic recovery and expansion: -- Stock market at record highs; December 16, Dow-Jones hit 1553, an all-time high. -- Inflation for the year at about 2.9 percent; you have to go back to 1966-1968 to find three straight years of lower inflation. -- Job creation -- There are nearly 9 million more Americans working today than there were in November 1982; a record number of Americans are now employed -- nearly 108 million. -- Interest rates down -- prime dropped to lowest level in 7 years -- critics said they'd be up in 1985. Interest on Treasury notes also hit seven-year lows this year. -- Energy prices trending down -- About 45 percent decline in real terms since RR ordered immediate decontrol in January 1981. OPEC cartel no longer dictates prices. Economic Outlook for 1986 C RR looks to 1986 with justifiable optimism. CEA projections: (1) GNP growth: 4% (2) Unemployment rate: to drop from 6.9% to 6.7% (3) Inflation to remain low (under 48) (4) Long-term interest rates to continue to fall NOTE: CEA also forecasts that short-term interest rates may rise -- interest rate on 91-day Treasury bills is forecasted to rise from 7% to 7.3%. In addition, CEA projects inflation rate (GNP deflator) to increase from estimated 2.9% in 1985 to 3.8% for 1986. Commerce Department projects nearly 80 percent of the U.S. manufacturing sector will enjoy increased shipments in 1986; vast majority will post higher revenues. Additional Encouraging Trends C Recent Federal Reserve actions reinforce downward trend in interest rates. With OPEC cartel's troubles, no reason to expect cost of energy to reignite inflation. Lower interest rates in 1985 helped housing, cars, and other big-ticket purchases. Administration efforts led to 20 percent decline in value of the dollar; imports should flow in more slowly in 1986 -- good news for U.S. manufacturers. GRAMM-RUDMAN-HOLLINGS RR is pleased that there is a strong working consensus in the Congress to reduce the deficit and balance the budget. C It is important to distinguish between the purpose and process of G-R-H. The purpose of G-R-H is to make the federal budget process work. The automatic cuts of G-R-H will take effect only if the federal budget process fails. G-R-H is historic: For the first time, sets us on a firm path of deficit reduction. The financial markets are already reflecting this hopeful new prospect. Constitutional Questions The Justice Department has moved for a dismissal of the suit brought by Rep. Mike Synar and others only because they don't think Members of Congress have standing to sue. Justice Department attorneys do favor an expedited review of the constitutional questions posed by G-R-H and welcome a suit by plaintiffs with standing. DOJ expects such a suit to be filed in the near future. The Justice Department is fulfilling its responsibility to enforce the law and uphold the Constitution. Justice Department action will not prevent the important purposes of G-R-H from being accomplished in a timely fashion. In G-R-H, constitutional questions were anticipated by the Congress; some remedies already included in legislation. NOTE: A provision of the Act grants standing to Members of Congress who wish to file a constitutional challenge to G-R-H. Article III of the Constitution requires that a "case or controversy" exist before a matter can be litigated in the Federal court. Note on Sequestering Process There is likely to be a "sequester" under Gramm-Rudman- Hollings for FY 1986, to take effect March 1. It will be a maximum of $11.7 billion, of which half would come from defense. RR's aim, and presumably that of the Congressional leaders, will be to avoid a sequester next October for 1987. The deficit target can be met and a sequester avoided while preserving the planned 3 percent growth in defense and without higher taxes. All it takes is a little courage to cut back domestic spending of lower priority. IMPACT OF GRAMM-RUDMAN-HOLLINGS ON FOREIGN AFFAIRS I intend to submit budgets for the 1987 fiscal year and for future years that will meet the deficit targets established in G-R-H. This will require some tightening of operations in all parts of government, including the operations and programs of the foreign affairs agencies. I intend to develop my future budgets as I have in the past, to meet, to the maximum extent possible, the requirements for defense and foreign assistance. The key to implementation of G-R-H will be close cooperation between the Administration and the Congress to reach a consensus on our national priorities which provides adequate resources for the conduct of foreign affairs. It would be an abdication of our responsibilities for the Administration and the Congress to fail to agree on programs which reflect the national security and foreign affairs priorities which the American people have elected us to carry out. Such a failure to agree would, under Gramm-Rudman, trigger arbitrary, automatic spending cuts, and thus severely limit our ability to carry out those initiatives which have brought this country out of the doldrums and paralysis of the 1970s. AIRLINE SAFETY RR knows only too well that Americans are concerned about airline safety. One accident, one lost life, is too many. RR spent a cold December morning with the families who were part of the tragedy in Gander, Newfoundland. No common thread to the tragedies in U.S. or worldwide. As part of an ongoing inspection effort, the FAA has ordered an eight-week review, beginning next week, of airline engine maintenance and service facilities. While deregulation has reduced most ticket prices, there have been no reductions in the FAA safety standards and inspection procedures. Secretary of Transportation has announced plans for an additional 150 inspectors in 1986. Not one accident in 1985 has been attributed to an error by air traffic controllers. NOTE: More people have died in 1985 aviation accidents worldwide than in any previous year. The mysterious Air India crash, and the Japan Air Lines crash (lost tail section, Boeing 747) killed 850 people. During the holidays, a crash of a private plane into a California shopping center and the death of musician Rick Nelson drew wide media attention. TRADE RR seeks to reduce trade deficit by opening global markets to U.S. products, but insists on fair play. In a fair and open world market, America can out-innovate, out-compete and out-sell anybody in the world. Trade Deficit Yes, it's high, but largely because our economic performance has been better than our trading partners. Answer is to reduce U.S. budget deficit and for trading partners to improve economic performance. Recent progress has adjusted dollar's value, but it will take time to reduce trade deficit permanently. Also taking aggressive steps to fight unfair trade practices in other countries. Must keep the problem in perspective. Our free and fair trade policies have helped create nearly 10 million new jobs in the last three years. We are doing better than most countries that have protectionist trade policies. Trade Legislation Happy to work with Congress as it seeks to restore a level playing field for American business. Interested in seeing legislation that would strengthen our ability to enforce fair trade. Also want authority for a new round of GATT negotiations. C But will not approve protectionist legislation. Anti-Trust Laws RR is considering amendments to our major antitrust laws -- the Sherman Act of 1890 and the Clayton Act of 1914 -- that were recommended by the Economic Policy Council and the Domestic Policy Council. Since the days of those landmark statues, the world has changed considerably. We now have a global economy, demonstrated by the fact that 70 percent of American goods face import competition. We must adjust to this global economy and that adjustment should include refining our antitrust laws to reflect the dynamics of world trade. BUDGET POLICY Before Gramm-Rudman-Hollings was enacted, RR instructed OMB Director Jim Miller to aim for a 1987 deficit no higher than $144 billion. Miller is working to produce a budget within those limits, and though nothing final has been decided on any specific item, the budget will meet the goal. RR has already announced that the Administration will be asking for three percent growth in defense, and will not touch Social Security or ask for higher taxes. RR will deliver a budget that will promote even greater economic growth and job creation. Privatization Without going into specifics, it is true that privatization will be a theme of this year's budget. Many government activities, at all levels, can be more efficiently carried out by the private sector at the local level. NOTE: There have been leaks in the press that the FY 87 budget will propose an unprecedented effort to sell federal government assets; the FHA, for example. BUDGET RECONCILIATION If the budget process is to ever work, it must work at every step along the way. Once both Houses agree to a budget resolution, they must then enact the specific budget savings in the form of legislation. In light of the recently enacted Gramm-Rudman-Hollings bill, it is important now, more than ever, to achieve the maximum level of savings. Before going home for Christmas, the Congress failed to enact a Reconciliation Bill. One reason was our threat to veto a bill that -- as drafted by either House -- contained numerous objectionable provisions: new taxes and phoney savings. RR will not accept new taxes in order to meet savings targets set forth in the budget resolution. We must find the discipline to cut deficits through spending cuts. FARM POLICY The 1985 Farm Bill Food Security Act of 1985 -- the farm bill -- makes major strides toward the market-orientation sought by RR, while maintaining income support for Nation's farmers. Over time, loan rates and crop price support levels will be adjusted to market levels, thus helping make our commodities more competitive in the international marketplace. Many of the more costly 1981 program changes have been modified or eliminated. Although this bill is not perfect, it is an improvement over current policy and it will allow us to keep our commitment to America's farmers. Farm Credit Legislation Legislation maintains a viable Farm Credit System -- a private, farmer-owned cooperative which provides more than 1/3 of all money loaned to U.S. farmers. Gives stronger regulatory authority to Farm Credit Administration to run the system like a business, use its own resources efficiently. Allows Treasury to provide assistance only if System uses all its resources and can demonstrate need for extra help. However, RR believes this will not be necessary. FmHA Foreclosure Notices RR is genuinely concerned about the plight of the farmers and has taken steps to help; in 1985, RR directed existing resources to be used to help farmers in a credit crunch -- so that the spring planting could proceed. Federal price support assistance has topped $60 billion over the past five years. Farmers Home Administration (FmHA) will begin notifying farmers this week that if they are delinquent on federal loans, they must immeditaly take steps to repay or restructure those loans. Under a November 1983 court ruling, FmHA will outline all options available to these farmers, including foreclosure. NOTE: In November 1983, a federal judge ordered FHA to halt these notifications pending completion of regulations giving farmers various options for handling their debts. These regulations were published in the Federal Register in November 1985. HOMELESS The problem is tragically real -- particularly in our cities. It must be addressed by each community, with compassion, joining where possible the resources of governments with concerned private groups and organizations. In Washington: -- A new 400-bed Navy facility in Anacostia has been made available to the city's homeless until a more permanent solution can be implemented. -- The Administration has pledged $3.7 million to the Coalition for the Homeless, a non-profit group representing several organizations that share our concern for homeless persons in Washington. -- RR wants to reiterate what we said just before New Year's: We will not forcibly evict anyone from that shelter so long as the cold weather remains dangerous to those without shelter. AFFIRMATIVE ACTION RR's view is now, and has always been, that quotas are wrong no matter whom they apply to and they are a disservice to all Americans. There are various proposals to revise federal rules concerning the use of quotas as they pertain to federal contract compliance. RR has not reviewed any proposals. GOP Platform on Affirmative Action: "The Republican Party is the party of equal rights. From its founding in 1854, we have promoted equality of opportunity "Americans demand a civil rights policy premised on the letter of the Civil Rights Act of 1964. That law requires equal rights; and it is our policy to end discrimination on account of sex, race, color, creed, or national origin "Just as we must guarantee opportunity, we oppose attempts to dictate results. We will resist efforts to replace equal rights with discriminatory quota systems and preferential treatment. HEALTH ISSUES AIDS AIDS education and research continues to be a top priority of the Administration. By the end of this year, the federal government will have spent almost half a billion dollars to fight AIDS. While AIDS continues to be a major threat to the public health, it appears that the rate of increase of reported cases is slowing, and there is still no evidence that it can be spread through casual contact. We all have long-term hopes for drugs and vaccines against AIDS, but none are immediately at hand. Meanwhile, major efforts should focus on prevention, and lowering the risks of spreading the disease. Catastrophic Health Insurance Catastrophic Health Insurance is the purest form of health insurance -- it provides protection against the financial consequences of very high cost, low probability, illness or injury. Nearly 30 million Americans are without health insurance of any kind for at least a portion of the year. This is not an new issue for RR or for this Administration. RR proposed a catastrophic health insurance plan for California. And in 1983 the Administration proposed catastrophic protection for Medicaid beneficiaries. HHS Secretary Bowen has written about adding catastrophic coverage under Medicare. We are examining this important and broad issue, and will shortly determine if there is an appropriate role here for the federal government. TAX REFORM House bill is a good start, not a final product. More must be done to broaden the tax base, reduce tax rates further, and lower the cost of capital. RR will work for these improvements and oppose any final legislation which does not meet RR's standards of true tax reform, especially increased economic growth. RR has received assurances from Senate GOP leaders that they will work with him this spring to improve the bill and give RR something that can be signed. In June 1985, one month after RR unveiled Administration proposal, a New York Times columnist wrote that tax reform bill was dead. After the bill passed the House, that surprised columnist wrote: "How did it happen?" Highlights Under the House bill, most median-income families of four would receive substantial tax relief; the largest percentage reductions in taxes would be received by low income taxpayers. -- The top individual rate is reduced to its lowest level since 1931. : 93 percent of all taxpayers would be in the 15 or 25 percent bracket. -- 85 percent of all taxpayers, at every income level, would receive a tax reduction or experience no change in tax. -- Corporate tax rates are reduced to their lowest level since 1941. The personal exemption and standard deductions are increased substantially, and millions of working poor will be removed from the tax rolls. Tax shelters are curtailed, special preferences are eliminated or restricted, and a stiff minimum tax is imposed. Politics of Tax Reform Constitution requires tax bills to start. in the House of Representatives, where the Democrats have the majority. House Ways and Means Committee, which writes tax legislation, is stacked two-to-one against the Republicans. Naturally, House GOP would have preferred their tax reform vehicle to pass the House and eventually be signed into law. It was apparent from the beginning that it would take bipartisan support to get tax reform through the House. There were some understandable differences of opinion on the tax reform bill as this bipartisan effort was being assembled. RR is confident that what will finally emerge from the Senate will be a better bill -- one that even larger majorities of Congress, from both sides of the aisle, can support.

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    "ocrText": "Ronald Reagan Presidential Library\nDigital Library Collections\nThis is a PDF of a folder from our textual collections.\nCollection: Roberts, John G.: Files\nFolder Title: JGR/Press Conferences\n(4 of 6)\nBox: 43\nTo see more digitized collections visit:\nhttps://reaganlibrary.gov/archives/digital-library\nTo see all Ronald Reagan Presidential Library inventories visit:\nhttps://reaganlibrary.gov/document-collection\nContact a reference archivist at: [email protected]\nCitation Guidelines: https://reaganlibrary.gov/citing\nNational Archives Catalogue: https://catalog.archives.gov/\nTHE WHITE HOUSE\nWASHINGTON\nNovember 4, 1985\nMEMORANDUM FOR TOM GIBSON\nDIRECTOR OF PUBLIC AFFAIRS\nFROM:\nJOHN G. ROBERTS, JR.\nDr.\nASSOCIATE COUNSEL TO THE PRESIDENT\nSUBJECT:\nTalking Points on October Economic\nand Domestic Highlights\nCounsel's office has reviewed the above-referenced talking points\nand has no objection to them from a legal perspective.\nCC: David L. Chew\nID #\nCU\nWHITE HOUSE\nCORRESPONDENCE TRACKING WORKSHEET\no . OUTGOING\nN - INTERNAL\n1 - INCOMING\nDate Correspridance\nReceived (YY/MM/DD)\n1\n/\nName of Correspondent: Dave Clew\nMI Mall Report\nUser Codes: (A)\n(B)\n(C)\nSubject: Julking Paints an actaber Economic\nand Damestic Highlights\nROUTE TO:\nACTION\nDISPOSITION\nTracking\nType\nCompletion\nAction\nDate\nof\nDate\nI\ngency\nI\n#\nVY/MM/DD\nResponse\nDate\nYY/MM/DD\nCustome\nORGINATOR\n85,11,01\nI /\nReferral Note:\ncut 18\nR\n15,11,01\ns 15,11,04\nReferral Note:\n12N\n1 /\n/ 1\nReferral Nate:\n/ /\n/ /\nReterral Note:\n/ 1\n/ I\nReferral:Note:\nACTION CODES:\nDISPOSITION CODES:\nA Appropriate Action\nI Info Copy/Oniy/No Action Metobeary\nA -Answared\nC -Completed\nC Domment/Recommendation\nR Direct Reply w/Copy\nB . Non-Special Referral\nS Suspended\nD Draft Response\nS For Signature\nF Furnish Fact Sheet\nx . Interim Raply\nto be used as Enclosure\nFOR OUTODING CORRESPONDENCE:\nType of Response # Initials of Signer\nCode = \"A\"\nCompletion Date = Date of Outgoing\nComments:\nKeep this worksheet attached to the original incoming letter.\nSend all routing updates to Central Reference (Room 75, DEOB).\nAlways return completed correspondence record to Central Files.\nRefer questions about the correspondence tracking system to Central Reference, ext. 2590.\n5/81\nDocument No.\nWHITE HOUSE STAFFING MEMORANDUM\nDATE:\n11-01-85\nACTION/CONCURRENCE/COMMENT DUE BY: Noon on 11-04-85\nSUBJECT: TALKING POINTS ON OCTOBER ECONOMIC & DOMESTIC HIGHLIGHTS\nACTION FYI\nACTION FYI\nVICE PRESIDENT\nLACY\nREGAN\nMcFARLANE\nMILLER\nOGLESBY\nBUCHANAN\nRYAN\nCHAVEZ\nSPEAKES\nCHEW\nP\nSS SPRINKEL\nDANIELS\nSVAHN\nFIELDING\nTHOMAS\nFRIEDERSDORF\nTUTTLE\nHENKEL\nHICKEY\nHICKS\nKINGON\nREMARKS:\nPlease submit any remarks/comments directly to Tom Gibson, with\ninformational copies to my office, by noon on Monday, November 4.\nThank you.\nRESPONSE:\nDavid L. Chew\nStaff Secretary\nExt. 2702\nTHE WHITE HOUSE\nResultations\nWASHINGTON\nNovember 1, 1985\nMEMORANDUM FOR DAVID CHEW\nFROM:\nTOM GIBSON TG.\nSUBJECT:\nTalking Points on Economic and Domestic Highlights\nfor the Month of October\nAttached, for staffing, are talking points covering good economic\nand domestic news for the month of October. They are for\ndistribution to agency spokesmen.\nI'd like to put these out as soon as possible.\nThanks very much.\nOCTOBER HIGHLIGHTS\nPresident's popularity at record highs. President Reagan heads\ntoward the Geneva summit with strong popular support for his\nhandling of foreign affairs. In a Washington Post-ABC News\npoll, the President's overall approval rating was 63 percent;\nand 64 percent approved of the President's handling of\nUS-USSR relations, the highest rating since the Post-ABC\nNews poll began asking the question in 1982.\nGrenada prospers under freedom. Two years after the October 25\nrescue of Grenada, U.S. technical and economic aid there has\nled to an unprecedented boom. U.S assistance has totaled\n$60 million to date.\nInflation whipped. For the twelve months ending September 1985,\nthe consumer price index rose just 3.2 percent, the slowest\nrise since a 3 percent inflation rate in 1967. Wholesale\nprices plunged 0.6 percent in September, the sharpest\ndecline since January 1983.\nJob growth continues at steady pace: 415,000 persons were added\nto U.S. payrolls in October 1985, the largest one-month gain\nin employment since February 1985. Total employment\n(including civilian and military) now stands at an all-time\nhigh: 109.6 million. About 8.8 million new jobs have been\ncreated since November 1982.\nContinued labor-management cooperation yields increased\nproductivity and unwinds the wage-price spiral. Chrysler\nand Wheeling-Pittsburgh Steel workers returned to work in\nOctober. Major collective bargaining agreements in the\nfirst nine months of 1985 provided 2.3 percent first-year\nwage hikes, the lowest first-year contract increase since\nthe Labor Department's survey began in 1962. The Labor\nDepartment also reported in October that total nonfarm\nbusiness productivity rose at an annual rate of 3.0 percent\nin the third quarter of 1985.\nTrimming Government waste. On October 28, 1985, President Reagan\nreceived the final report of the Grace Commission, the\nPresident's Private Sector Survey on Cost Control. The\nReagan Administration has adopted, proposed, or is scheduled\nto propose over 80 percent of the Commission's recom-\nmendations to cut waste and improve efficiency in the\nFederal Government.\nReal opportunity for black Americans. A Census Bureau survey\nreleased in October showed that the number of black-owned\nbusinesses in the U.S. rose 47 percent between 1977 and\n1982, from 231,203 to 339,239. According to a report in USA\nToday, private economists estimate there could be 434,904\nblack businesses by year's end -- 88 percent more than in 1977.\nTHE WHITE HOUSE\nWASHINGTON\nNovember 7, 1985\nMEMORANDUM FOR TOM GIBSON\nDIRECTOR OF PUBLIC AFFAIRS\nFROM:\nJOHN G. ROBERTS, JR\nASSOCIATE COUNSEL TO THE PRESIDENT\nSUBJECT:\nTalking Points on Social Security\nand Congressional Budget Crisis\nCounsel's Office has reviewed the above-referenced draft talking\npoints, and finds no objection to them from a legal perspective.\nCC: David L. Chew\nID #\nCU\nWHITE HOUSE\nCORRESPONDENCE TRACKING WORKSHEET\nOUTDOMS\nIN . INTERNAL\nI INCOMING\nDate Correspondence\nReceived (YY/MM/DD)\n/\n/\nName of Correspondent: Dave Chew\nMI Mall Report\nUser Codes: (A)\n(B)\n(C)\nSubject: Taching points on social security\nand congressional Budget crises\nROUTE TO:\nACTION\nDISPOSITION\nTracking\nType\nCompletion\nAction\nDate\nof\nDate\nOffice/Agency\nchreff Name)\nDote\nYY/MM/DD\nResponse\nCode\nYY/MM/DD\nCUHOLL\nHORIGINATOR\n85,11,07\n/ 1\nReturnal Note:\nCuat 18\nR\n85,11,07\n585,11,07\n- Note:\nCOB\n1\n1\n/ /\nReferral Note:\n/\n1\n1 /\n-\nReferral Note:\n/\n/\n/\n-\n/\nReferrations: TS:\nACTION CODES:\nDISPOSITION CODES:\nA Appropriate Action\nt Into Copy Only/No.Retion Necessary\nA Answored\nc -Completed\nC Comment/Recommendation\nR Direct Reply w/Dopy\nB Non-Special Referral\ns Buspended\nD Draft Response\nS For Signature\nF Furnish Fact Sheet\nX Interim Reply\nto be used as Enolosero\nFOR CORRESPONDENCE\nType at Remoview Initials of Bigner\nCode = \"A\"\nCompletion Date Date of Outgoing\nComments:\nKeep this worksheet attached to the original Incoming letter.\nSend all routing updates to Contral Reference (Room 75, DEOB).\nAlways return completed correspondence record to Central Files.\nRefer questions about the correspondence tracking system to Central Reference, ext. 2590.\n561\nDocument No.\nWHITE HOUSE STAFFING MEMORANDUM\nDATE: 11-07\nACTION/CONCURRENCE/COMMENT DUE BY: C.O.B. Today\nSUBJECT: TALKING POINTS ON SOCIAL SECURITY & CONGRESSIONAL BUDGET CRISIS\nACTION FYI\nACTION FYI\nVICE PRESIDENT\nOGLESBY\nREGAN\nMILLER\nRYAN\nBUCHANAN\nSPEAKES\nCHAVEZ\nSPRINKEL\nCHEW\nP\nSS SVAHN\nDANIELS\nTHOMAS\nFIELDING\nTUTTLE\nHENKEL\nGibson\nHICKS\nKINGON\nLACY\nMcFARLANE\nREMARKS:\nPlease submit comments/remarks directly to Tom Gibson, with\nand information copy to my office by the end of today.\nThank you.\nRESPONSE:\nDavid L. Chew\nStaff Secretary\nExt. 2702\nTHE WHITE HOUSE\nWASHINGTON\nNovember 7, 1985\nMEMORANDUM FOR DAVID CHEW\nFROM:\nTOM GIBSON\nit.\nSUBJECT:\nTalking Points/Issue Briefs on Recent Actions on\nSocial Security and Congressional Delay on\nGovernment Fiscal Matters\nAttached, for staffing, are talking points/issue briefs on recent\nactions on Social Security and Congressional delay on government\nfiscal matters. Treasury and OMB have reviewed a first draft and\nhave commented on the numbers and tone. Of course they should\ncomment on this draft as well.\nI'd like to put these out as soon as possible.\nThanks very much.\nSOCIAL SECURITY INTEGRITY PRESERVED\nOn November 1 and 4, in the midst of a financial crisis spawned by\ncontinued Congressional bickering and inaction, the Administration\ntook unprecedented steps to keep November's Social Security checks\npayable and on schedule.\nAs required by law, Treasury Secretary Jim Baker redeemed some of the\nSocial Security Trust Fund's assets -- U.S. Treasury certificates --\nto raise money to pay benefits people need for rent, food, clothing\nand other necessities. The assets in the Trust Fund are there\nprecisely for this purpose and will be restored.\nSocial Security assets are not being used to pay other obligations of\nthe Federal Government.\nThe only alternative was to pay November's Social Security benefits\nout of general revenues which were inadequare -- and would accelerate\nthe crisis, created by Congressional inaction, and cause the\ngovernment to default.\nPlaying Politics With Social Security\nAs before, it appears that certain members of the Democratic Party --\nwho during the late 1970s ran the Social Security System into near\nbankruptcy -- are preying upon the fears of older Americans for cheap\npolitical advantage.\nDemocrats hope to terrorize Social Security recipients into thinking\ntheir benefits are not secure. -This suits the short-term political\nwhims of certain unscrupulous Democratic politicians, especially in\nthe House leadership.\nThe Solution:\nIf Congress would stop its posturing, fulfill its obligations, and\npass a debt ceiling bill and appropriations bills called for by law,\nall Americans would breathe easier and this Democrat-generated \"scare\nplan\" on Social Security would evaporate overnight.\nTHE CONGRESSIONAL BUDGET CRISIS\nThe Constitution gives Congress the power to collect revenues \"to pay\nthe Debts and provide for the common Defence and general Welfare of\nthe United States.\"\nIn the past, when Congress has delayed action on individual\nappropriation bills, the President has been required by law to shut\ndown affected agencies. This time, the crisis is government-wide.\nUnless the Congress passes a debt ceiling extension bill, the Federal\nGovernment will run out of money by November 14. Federal checks to\ncover military salaries, pensions, student aid benefits, the bills of\nvendors, principal and interest on our national debt, or any of a\nmultitude of government's obligations will bounce.\nThe problem: Congress has completely abrogated its responsibility to\nset a Federal budget and pay the bills.\nCongressional Mismanagement and Delay\nThis year, Congress failed to meet every deadline required by its own\n1974 Budget Act to keep the Government running:\nFirst Concurrent Budget Resolution. Deadline: May 15, 1985.\nAction: August 1, 1985 -- two and one-half months late.\nSecond Concurrent Budget Resolution. Deadline: September 15,\n1985. Action: no action taken.\nAppropriation Bills. Deadline: September 30, 1985. Action: None\npassed by statutory deadline and only two passed to date. A\ntemporary continuing resolution was substituted for all\nappropriations bills. It expires on November 15, 1985.\nDebt Ceiling Extension. Current Deadline: November 14, 1985.\nAction: Pending -- emergency actions by the Administration have\ncovered Congressional inaction until November 14, 1985.\nThe Solution:\nCongress should end its posturing and fulfill its Constitutional and\nstatutory obligations and pass appropriations bills and debt ceiling\nlegislation.\nUntil Congress acts responsibly and breaks the current budget impasse,\nthe President will take all available actions to sustain government\nservices and ensure that Social Security checks are honored.\nTHE WHITE HOUSE\nWASHINGTON\nNovember 12, 1985\nMEMORANDUM FOR TOM GIBSON\nSPECIAL ASSISTANT TO THE PRESIDENT\nDIRECTOR, PUBLIC AFFAIRS\nFROM:\nASSOCIATE COUNSEL TO THE PRESIDENT\nJOHN G. ROBERTS 822\nSUBJECT:\nTalking Points Regarding Social\nSecurity and Budget Crisis\nCounsel's Office has reviewed the above-referenced talking\npoints, and finds no objection to them from a legal\nperspective.\nCC: David L. Chew\nID #\nCU\nWHITE HOUSE\nCORRESPONDENCE TRACKING WORKSHEET\n0 - OUTSOING\nH INTERNAL\n1 INCOMING\nDate Correspondence\nReceived Y/MM/DD)\n/\n/\nName of Correspondent: Daw caew\nMI Report\nUser Codes: (A)\n(B)\n(C)\nSubject: Juching paints w sarial Security 1\nBudget crises\nROUTE TO:\nACTION\nDISPOSITION\nTracking\nType\nCompletion\nAction\nDate\nel\nDate\nOffice/Agency\n(Staff Name)\nCode\nYY/MM/DD\nResponse\nCode\nYY/MM/DD\nCUHOLL\nORIGINATOR 65,11.12\n/ ,\nReterral Note:\nCUAT 18\nB\n15,11,17\n$85,11,12\n10am\nReferral Note:\nI\nI\n,\n-\nReferral Note:\nI\nI\nI /\nReternal Note\n/ 1 I\nI\nà\nNove:\nACTION CODES:\nDISPOSITION CODES:\nA . Appropriate Action\n1 Into Copy Only/No Action Necessary\nA Answered\nB\nc Comment/Recommendation\nR Direct Reply w/Copy\nB * Non-Special Referral\na\ndiscumpand\nD Draft Response\nS For Signature\nF Furnish Fact Sheet\nX Interim Reply\nto be used as Enclosure\nFOR OUTGOING CORRESPONDENCE:\nType of Response initiate of Signer\nCode\n\"A\"\nCompletion Date = Date of Outgoing\nComments:\nKeep this worksheet attached to the original incoming letter.\nSend all routing updates to Central Reference (Room 75, OEOB).\nAlways return completed correspondence record to Central Files.\nRefer questions about the correspondence tracking system to Central Reference, ext. 2590.\n581\nDocument No.\nWHITE HOUSE STAFFING MEMORANDUM\nDATE:\n11/11/85\nACTION/CONCURRENCE/COMMENT DUE BY:\n10:00 a.m. TOMORROW 11/12\nSUBJECT:\nTALKING POINTS RE SOCIAL SECURITY & BUDGET CRISIS\nACTION FYI\nACTION FYI\nVICE PRESIDENT\nOGLESBY\nREGAN\nMILLER\nRYAN\nBUCHANAN\nSPEAKES\nCHAVEZ\nSPRINKEL\nCHEW\nP\nSVAHN\nDANIELS\nTHOMAS\nFIELDING\nTUTTLE\nHENKEL\nGIBSON\nHICKS\nKINGON\nLACY\nMcFARLANE\nREMARKS:\nPlease provide any comments/edits directly to Tom Gibson by 10:00 a.m.\ntomorrow, with an information copy to my office. Thank you.\nRESPONSE:\nDavid L. Chew\nStaff Secretary\nExt. 2702\n(This will be sent to Admin.\nspokesmen & editorial boards, etc.\nSOCIAL SECURITY INTEGRITY PRESERVED\nOn November 1 and 4, in the midst of a financial crisis spawned by\nCongressional bickering and inaction, the Administration took\nunprecedented steps to keep November's Social Security checks\npayable and on schedule.\nAs authorized by law, Treasury Secretary Jim Baker accelerated\nredemption of some of the Social Security Trust Fund's assets --\nU.S. Treasury securities -- to raise money to pay Social Security\nbenefits people need for rent, food, clothing and other necessities.\nThe assets in the Trust Fund are there precisely for this purpose\nand are not being used to pay other obligations of the Federal\nGovernment. Any loss to the fund because of Congressional\ninaction can be cured by new legislation.\nPlaying Politics With Social Security\nSome in the Democratic Party have tried to cast the actions by\nthe Secretary of the Treasury as a partisan issue, and in so\ndoing have terrorized Social Security recipients into thinking\ntheir benefits are not secure.\nThe Solution:\nDespite Congressional posturing, the President is committed to\nkeeping Social Security checks in the mail and payable. Congress\nmust fulfill its obligations, pass debt ceiling legislation and\nwork to restore -- not shake -- public confidence in the Social\nSecurity system.\n(This will go to Admin. surrogates\nonly)\nTHE CONGRESSIONAL BUDGET CRISIS\nThe Constitution commits to Congress the powers (1) to collect\nrevenues \"to pay the Debts and provide for the common Defence and\ngeneral Welfare of the United States,\" and (2) to \"borrow Money\non the Credit of the United States.\"\nIn the past, when Congress has delayed action on individual\nappropriation bills, the President has been required by law to\nshut down affected agencies. This time, because of the debt\nlimit, the impending crisis is government-wide.\nUnless Congress passes a debt ceiling extension bill by midnight\nNovember 14, the Federal Government will default November 15.\nFederal checks to cover pensions, military salaries, principal\nand interest on the national debt, student aid benefits and a\nmultitude of government's obligations will bounce beginning on\nNovember 15.\nThe cause of this potential financial crisis: Congress has\nrefused to take the necessary action to enable us to pay our\nbills.\nCongressional Mismanagement and Delay\nThis year, Congress failed to meet every deadline required by the\n1974 Budget Act to keep the Government running:\nFirst Concurrent Budget Resolution. Deadline: May 15, 1985.\nAction: August 1, 1985 -- two and one-half months late.\nAppropriation Bills. Deadline: September 30, 1985. Action:\nNot a single one passed by statutory deadline and only two\nsent to the President to date -- Congress's own\nappropriation and the appropriation for Energy and Water.\nA temporary continuing resolution was substituted for the 11\nother appropriation bills not yet passed. This, too,\nexpires on midnight November 14, 1985.\nDebt Ceiling Extension. Current deadline: midnight November\n14, 1985. Action: Pending -- emergency actions by the\nAdministration have covered Congressional paralysis -- but\nonly until midnight November 14, 1985.\nThe Solution:\nCongress should cease dithering and fulfill its Constitutional\nand statutory obligations, and prevent the United States of\nAmerica from going into default before the end of the week.\nTHE WHITE HOUSE\nWASHINGTON\nNovember 13, 1985\nMEMORANDUM FOR TOM GIBSON\nSPECIAL ASSISTANT TO THE PRESIDENT\nDIRECTOR, PUBLIC AFFAIRS\nFROM:\nASSOCIATE COUNSEL Dr TO THE PRESIDENT\nJOHN G. ROBERTS\nSUBJECT:\nTalking Points -- Education Vouchers\nCounsel's Office has reviewed the proposed talking points on\nthe Equity and Choice Act of 1985. The Act raises serious\nand close questions under the Supreme Court's interpretation\nof the Establishment Clause. The Education Department\nadvises that its Office of General Counsel has reviewed the\nAct and is confident of its constitutionality, but Adminis-\ntration spokesmen should expect and be prepared to answer\nquestions on that score.\nCC: David L. Chew\nID #\nCU\nWHITE HOUSE\nCORRESPONDENCE TRACKING WORKSHEET\no - OUTGOING\nH . INTERNAL\nI - INCOMING\nDate Correspondence\nReceived (YY/MM/DD)\n/\n/\nName of Correspondent:\nDave Chew\nMI Mall Report\nUser Codes: (A)\n(B)\n(C)\nSubject:\nTalking Points- Education Vouchers\nROUTE TO:\nACTION\nDISPOSITION\nTracking\nType\nCompletion\nAction\nDate\nof\nDate\nDifice/Agency\n(Staff Planne)\nCode\nYY/MM/DD\nResponse\nCode\nYY/MM/D\nCUHOLL\nORIGINATOR\n/\nI\n/ /\nReferrat Note:\nCUAT 18\nB 851111/2\n8 8511/42\nReferral Note:\n11AM\n/ I\n/\n-\nReferral Note:\n/ I\nI 7\nReferral Note:\n/\n/\nI ,\nReferral Note:\nACTION CODES:\nDISPOSITION CODES:\nA - Appropriate Action\ná s Copy Mecessary\nA Answered\nC Completed\nC Comment/Recommendation\nR Direct Reply w/Copy\nB Non-Special Referral\nB \"Susparided\nD\nDraft Response\nS For Signature\nF\nFurnish Fact Sheet\nX -Interim Reply\nto be used as Enclosure\nFOR OUTGOING CORRESPONDENCE:\nType of Response = Initials of Signer\nCode \"A\"\nCompletion Date = Date of Dutgoing\nComments:\nKeep this worksheet attached to the original incoming letter.\nSend all routing updates to Central Reference (Room 75, DEOB).\nAlways return completed correspondence record to Central Files.\nRefer questions about the correspondence tracking system to Central Reference, ext. 2590.\n5/81\nDocument No.\nWHITE HOUSE STAFFING MEMORANDUM\nDATE: 11-12-85\nACTION/CONCURRENCE/COMMENT DUE BY: 11:00 a.m. 11-13-85\nSUBJECT: TALKING POINTS ON EDUCATION VOUCHERS\nACTION FYI\nACTION FYI\nVICE PRESIDENT\nOGLESBY\nREGAN\nMILLER\nRYAN\nBUCHANAN\nSPEAKES\nCHAVEZ\nSPRINKEL\nCHEW\nSS SVAHN\nDANIELS\nTHOMAS\nFIELDING\nTUTTLE\nHENKEL\nGIBSON\nHICKS\nKINGON\nLACY\nMcFARLANE\nREMARKS:\nPlease submit any comments/remarks directly to Tom Gibson\nby 11:00 a.m. tomorrow. Thank you.\nRESPONSE:\nDavid L. Chew\nStaff Secretary\nExt. 2702\nTHE WHITE HOUSE\nWASHINGTON\n12\nNovember 12, 1985\nMEMORANDUM FOR DAVID CHEW\nFROM:\nTOM GIBSON TG.\nSUBJECT:\nTalking Points on Education Vouchers\nAttached, for staffing, are draft talking points on the\nAdministration's educational vouchers proposal, The Equity and\nChoice (TEACH) Act of 1985. The Administration bill is being\nunveiled by Secretary Bennett tomorrow.\nADMINISTRATION INITIATIVE FOR EDUCATIONAL OPPORTUNITY\nThe Equity and Choice Act of 1985\nThe Reagan Administration has unveiled The Equity and Choice\n(TEACH) Act of 1985, to provide choice in education through a\nvoucher plan. This legislation, the most recent initiative in\nthe Administration's longstanding campaign to promote excellence\nin education, will shortly be introduced in Congress.\nThe Administration's proposed voucher system for educationally\ndisadvantaged students (Chapter 1 participants) will enable\nlow-income parents to exercise the right to choose the public or\nnon-public school which best suits their children's needs.\nTEACH, announced by Education Secretary William Bennett on\nNovember 13, 1985, will provide funds directly to parents of\neducationally disadvantaged children. Greater involvement of\nparents will better serve both students and schools.\nTEACH is a sound response to the U.S. Supreme Court's Felton\ndecision, which prohibits the provision of Chapter 1 services by\npublic school teachers to children on religious school premises.\nVoucher funds go to parents, not teachers or schools, avoiding\npotential Constitutional entanglements.\nBenefits of TEACH\nThe Administration's proposed legislation is a bold stroke for\nequal opportunity and educational excellence.\nTEACH fulfills the promise of Chapter 1 by expanding the\nrange of choices available and addressing students'\nindividual needs.\nTEACH gives poor families some of the educational choice\nalready available to affluent families who can select a\nschool through choice of neighborhood or choice of public\nschool.\nThe Administration's voucher proposal introduces some\nhealthy competition into the American education system --\nimproving the quality of education in all schools, both\npublic and non-public.\nPublic Opinion and Choice\nAccording to a 1985 Gallup Poll, 59 percent of blacks and a\nsimilar majority of persons living in cemtral cities support an\neducational voucher system.\nTHE WHITE HOUSE\nWASHINGTON\nNovember 13, 1985\nMEMORANDUM FOR DAVID L. CHEW\nSTAFF SECRETARY\nFROM:\nJOHN G. ROBERTS JJR\nASSOCIATE COUNSEL TO THE PRESIDENT\nSUBJECT:\nRed Cross Press Release\nCounsel's Office has reviewed the above-referenced press\nrelease, and finds no objection to it from a legal\nperspective.\nID #\nCU\nWHITE HOUSE\nCORRESPONDENCE TRACKING WORKSHEET\n. OUTGOING\nH - INTERNAL\nI - INCOMING\nDate Correspondence\nReceived (YY/MM/DD)\n/\n/\nName of Correspondent:\nDave chew\nMI Mail Report\nUser Codes: (A)\n(B)\n(C)\nSubject:\nRed Cross Press Release\nROUTE TO:\nACTION\nDISPOSITION\nTracking\nType\nCompletion\nAction\nDate\nof\nDate\nOffice/Agency\nStall Name\nCode\nYY/MM/DD\nResponse\nCode\nYY/MM/DD\nCUHOLL\nORIGINATOR 85/1/13\n/ 1\nReferral Note:\nQUATI8\nR\n85111113\ns 85,1113\nReferral Note:\n11:30am\nI\nI\n/ 1\n-\nReferral Note:\n1\n/\nI\nI\nReterral Note:\nIf I\nI /\nMete:\n#*\nACTION CODES:\nDISPOSITION CODES:\nA Appropriate Action\ninfo Copy Only/No Action Recessary\nA Answered\nD Completed\nc Comment/Recommendation\n# Direct Reply w/Copy\n3 . Non-Special Referral\nБ -Sumpended\nD Draft Response\n16 For Signature\nF Furnish Fact Sheet\n2 Interim Reply\nto be used as Enclosure\nFOR OUTSBING CORRESPONDENCE:\nType of Response = Initials of Signer\nCode \"A\"\nCompletion Date = Date of Outgoing\nComments:\nKeep this worksheet attached to the original incoming letter.\nSend all routing updates to Central Reference (Room 75, OEOB).\nAlways return completed correspondence record to Central Files.\nRefer questions about the correspondence tracking system to Central Reference, ext. 2590.\n5/81\nDocument No.\nWHITE HOUSE STAFFING MEMORANDUM\nDATE: 11-13-85\nACTION/CONCURRENCE/COMMENT DUE BY: 11:30 a.m. TODAY\nSUBJECT: RED CROSS PRESS RELEASE\nACTION FYI\nACTION FYI\nVICE PRESIDENT\nOGLESBY\nREGAN\nMILLER\nRYAN\nBUCHANAN\nSPEAKES\nCHAVEZ\nSPRINKEL\nCHEW\nP\nSS SVAHN\nDANIELS\nTHOMAS\nFIELDING\nTUTTLE\nHENKEL\nHICKS\nKINGON\nLACY\nMcFARLANE\nREMARKS:\nIs the attached press release OK with your office to\ngo this afternoon?\nRESPONSE:\nDavid L. Chew\nStaff Secretary\nExt. 2702\nTHE WHITE HOUSE\nWASHINGTON\nNOV 13\nNovember 13, 1985\nMEMORANDUM FOR:\nDAVID CHEW\nFROM:\nFREDERICK J. RYAN, JR.\n77R\nSUBJECT:\nRed Cross Press Release\nToday at 2:15 p.m., the President will meet with Red Cross Chairman George\nMoody and Red Cross President, Richard Schubert to discuss their $20 million\ndisaster relief campaign.\nThe fund-raising drive was announced on November 7 to ensure that the Red\nCross can continue to meet disaster victims' needs. To date, the Red Cross\nhas committed almost $48 million on a series of natural disasters that have hit\nthe United States. This year is only the third time this century that five or\nmore hurricanes have hit the U.S. mainland.\nPresident Reagan will also be doing a public service announcement and\npromoting various private sector initiatives that are being developed to assist\nthem with their campaign.\nAttached is a draft press release we would like to have made available\nthrough the White House Press Office after the meeting today.\nTHE WHITE HOUSE\nOffice of the Press Secretary\nFor Immediate Release\nNovember 13, 1985\nPresident Ronald Reagan today presented the American Red Cross with a\nletter of support for its $20 million emergency disaster relief campaign\nannounced November 7. Red Cross Chairman, George M. Moody, and\nPresident, Richard F. Schubert, accepted the letter urging Americans to give\ngenerously towards the fund-raising campaign launched to meet current and\nfuture disaster demands.\nThe fund-raising drive was begun to ensure that the Red Cross can continue\nto meet disaster victims' needs. To date, the Red Cross has committed almost\n$48 million on a series of natural calamaties that have struck U.S. mainland\nand Puerto Rico since July 1, 1985. This year is only the third time this\ncentury that five or more hurricanes have hit U.S. mainland. The five\nhurricanes were \"Bob,\" \"Danny,\" \"Elena,\" \"Gloria,\" and \"Juan.\" Other\ndisasters such as fires, floods, chemical spill evacuations and the Puerto\nRican mud slides have added to Red Cross expenditures.\nSince July 1, 1985 the Red Cross has operated 2,026 shelters housing 900,000\npeople. More than 22,000 Red Cross volunteers and paid staff have fed more\nthan 4 million disaster victims. Approximately 31,400 families have received\nRed Cross financial assistance.\nThe Red Cross expects to spend almost $10 million on the current relief\noperation in Virginia, West Virginia, Maryland and Pennsylvania. More than\n4,500 Red Cross volunteers and paid staff served 25,000 meals and\ndistributed 5,000 cleanup kits to families affected by the floods.\nPresident Reagan will also be doing a public service announcement and\npromoting other private sector initiatives to support the American Red Cross.\nPeople wishing to help disaster victims can send donations to their locat Red\nCross chapters or to the American Red Cross, \"Emergency Disaster Relief\nCampaign,\" P.O. Box 37243, Washington, D.C. 20013\nTHE WHITE HOUSE\nWASHINGTON\nJanuary 3, 1986\nMEMORANDUM FOR TOM GIBSON\nSPECIAL ASSISTANT TO THE PRESIDENT\nDIRECTOR, PUBLIC AFFAIRS\nFROM:\nJOHN G. ROBERTS DR\nASSOCIATE COUNSEL THE PRESIDENT\nSUBJECT:\nDraft Domestic Briefing Materials\nCounsel's Office has reviewed the draft domestic briefing\nmaterials. It is our understanding that the first item in\nthe third bullet on the page entitled \"Homeless\" will be\nrevised to delete any numerical description (the number of\nbeds has been the subject of litigation) and to delete the\ndescription of the shelter as a \"Navy\" facility.\nCC: David L. Chew\nID #.\nCU\nWHITE HOUSE\nCORRESPONDENCE TRACKING WORKSHEET\n0 - DUTOSING\n# -INTERNAL\n1 . INCOMING\nDate Commissione\nReceived (18 Y/MM/DD)\n1\n/\nName of Correspondent: class Clew\nMI Mail Report\nUser Codes: (A)\n(B)\n(C)\nSubject: materiaes Draft Domestic Briebing\nROUTE TO:\nACTION\nDISPOSITION\nTraching\nType\nCompletion\nAction I 1\nof\nDate\nOffice/Agency (Staff Name)\nCode\nYYA\nResponse\nCode\nYY/MM/DD\nCUHOLL\nORIGINATOR 84,01,03\nI /\nReferral Note:\ncuat 18\nB\n86,01,03\n586,01,03\nReferral Note:\n12N\n/ 1\n/ /\n-\nReferral Note:\n/\n/\n1\n1\nReferral Note:\n/\n/\n/ I\nReferral Note:\nACTION CODES:\nDISPOSITION CODES:\nA Appropriate Action\nI Necessary\nA Answered\nC Completed\nC . Comment/Recoshmenstation\nR STreet Raply w/Copy\nB Non-Special Referral\n$ Suspended\nD Draft Response\n8 -Por Signature\nF Furnish Fact Sheet\nx -datorim Raply\nto be used as Explosure\nFOR OUTGOING CERRESPONDENCE:\nType of Response = Initials of Signer\nCode = \"M\"\nCompletion Date = Date of Outgoing\nComments:\nKeep this worksheet attached to the original incoming letter.\nSend all routing updates to Central Reference (Room 75, OEOB).\nAlways return completed correspondence record to Central Files.\nRefer questions about the correspondence tracking system to Central Reference, ext. 2590.\nMB1\nDocument No.\nEXTREME CLOSE HOLD\nWHITE HOUSE STAFFING MEMORANDUM\nDATE: 1/2/86\nACTION/CONCURRENCE/COMMENT DUE BY: - NOON 1/3/86\nSUBJECT: DRAFT DOMESTIC BRIEFING MATERIALS\nACTION FYI\nACTION FYI\nVICE PRESIDENT\nPOINDEXTER\nREGAN\nOGLESBY\nMILLER\nF\nRYAN\nBUCHANAN\nSPEAKES\nCHAVEZ\nSPRINKEL\nCHEW\nP\nSS\nSVAHN\nDANIELS\nTHOMAS\nf\nFIELDING\nTUTTLE\nHENKEL\nGIBSON\nHICKS\nBRASHEAR\nKINGON\nLACY\nREMARKS:\nPlease submit your commentson the attached directly to Tom Gibson in\nRoom 160 by noon tomorrow. Thank you. w/ info copy to our office.\nRESPONSE:\nEXTREME CLOSE HOLD\nDavid L. Chew\nStaff Secretary\nExt. 2702\nPRINCIPAL ACHIEVEMENTS OF 1985\nEconomy\nAmerica enters her fourth year of economic recovery and\nexpansion.\nTax Reform\nBecause of RR's personal involvement, the process has\nbeen kept alive by House passage of most sweeping\nreform legislation in more than 40 years. Markers have\nbeen set out for Senate action in 1986.\nGramm-Rudman-Hollings\nMost sweeping anti-deficit legislation in history. RR\ncommitted to work with Congress to meet deficit\ntargets.\nFarm Policy\nMarket-oriented approach reinstated, reversing failed\npolicies of past administrations.\nGeneva Summit\nGrowing bipartisanship in foreign policy:\nCongress voted $1.5 billion for 21 additional MX\nmissiles, bringing the total to 50.\nIn June, Congress voted to resume aid to freedom-\nfighters in Nicaragua, reversing the House vote in May.\nClark Amendment was repealed, allowing the U.S. to aid\nthose on the side of freedom im Angola (Savimbi/UNITA)\nFree and Fair Trade\nRR stemmed tide of protectionism by tough enforcement\nof existing trade laws and multilateral steps to\nrevalue currencies.\nAchille Lauro\nDemonstration of U.S. resolve to bring terrorists to\njustice, wherever they hide.\nECONOMIC UPDATE\nEntering the fourth year of economic recovery and expansion:\n-- Stock market at record highs; December 16, Dow-Jones\nhit 1553, an all-time high.\n--\nInflation for the year at about 2.9 percent; you have\nto go back to 1966-1968 to find three straight years of\nlower inflation.\n--\nJob creation -- There are nearly 9 million more\nAmericans working today than there were in November\n1982; a record number of Americans are now employed --\nnearly 108 million.\n--\nInterest rates down -- prime dropped to lowest level in\n7 years -- critics said they'd be up in 1985. Interest\non Treasury notes also hit seven-year lows this year.\n--\nEnergy prices trending down -- About 45 percent decline\nin real terms since RR ordered immediate decontrol in\nJanuary 1981. OPEC cartel no longer dictates prices.\nEconomic Outlook for 1986\nC\nRR looks to 1986 with justifiable optimism.\nCEA projections:\n(1) GNP growth: 4%\n(2) Unemployment rate: to drop from 6.9% to 6.7%\n(3) Inflation to remain low (under 48)\n(4) Long-term interest rates to continue to fall\nNOTE:\nCEA also forecasts that short-term interest rates\nmay rise -- interest rate on 91-day Treasury bills\nis forecasted to rise from 7% to 7.3%. In\naddition, CEA projects inflation rate (GNP\ndeflator) to increase from estimated 2.9% in 1985\nto 3.8% for 1986.\nCommerce Department projects nearly 80 percent of the U.S.\nmanufacturing sector will enjoy increased shipments in 1986;\nvast majority will post higher revenues.\nAdditional Encouraging Trends\nC\nRecent Federal Reserve actions reinforce downward trend in\ninterest rates. With OPEC cartel's troubles, no reason to\nexpect cost of energy to reignite inflation.\nLower interest rates in 1985 helped housing, cars, and other\nbig-ticket purchases.\nAdministration efforts led to 20 percent decline in value of\nthe dollar; imports should flow in more slowly in 1986 --\ngood news for U.S. manufacturers.\nGRAMM-RUDMAN-HOLLINGS\nRR is pleased that there is a strong working consensus in\nthe Congress to reduce the deficit and balance the budget.\nC\nIt is important to distinguish between the purpose and\nprocess of G-R-H. The purpose of G-R-H is to make the\nfederal budget process work. The automatic cuts of G-R-H\nwill take effect only if the federal budget process fails.\nG-R-H is historic: For the first time, sets us on a firm\npath of deficit reduction. The financial markets are\nalready reflecting this hopeful new prospect.\nConstitutional Questions\nThe Justice Department has moved for a dismissal of the suit\nbrought by Rep. Mike Synar and others only because they\ndon't think Members of Congress have standing to sue.\nJustice Department attorneys do favor an expedited review of\nthe constitutional questions posed by G-R-H and welcome a\nsuit by plaintiffs with standing. DOJ expects such a suit\nto be filed in the near future.\nThe Justice Department is fulfilling its responsibility to\nenforce the law and uphold the Constitution.\nJustice Department action will not prevent the important\npurposes of G-R-H from being accomplished in a timely fashion.\nIn G-R-H, constitutional questions were anticipated by the\nCongress; some remedies already included in legislation.\nNOTE: A provision of the Act grants standing to Members of\nCongress who wish to file a constitutional challenge\nto G-R-H. Article III of the Constitution requires\nthat a \"case or controversy\" exist before a matter\ncan be litigated in the Federal court.\nNote on Sequestering Process\nThere is likely to be a \"sequester\" under Gramm-Rudman-\nHollings for FY 1986, to take effect March 1. It will be a\nmaximum of $11.7 billion, of which half would come from\ndefense.\nRR's aim, and presumably that of the Congressional leaders,\nwill be to avoid a sequester next October for 1987. The\ndeficit target can be met and a sequester avoided while\npreserving the planned 3 percent growth in defense and\nwithout higher taxes. All it takes is a little courage to\ncut back domestic spending of lower priority.\nIMPACT OF GRAMM-RUDMAN-HOLLINGS ON FOREIGN AFFAIRS\nI intend to submit budgets for the 1987 fiscal year and\nfor future years that will meet the deficit targets\nestablished in G-R-H.\nThis will require some tightening of operations in all\nparts of government, including the operations and\nprograms of the foreign affairs agencies.\nI intend to develop my future budgets as I have in the\npast, to meet, to the maximum extent possible, the\nrequirements for defense and foreign assistance.\nThe key to implementation of G-R-H will be close\ncooperation between the Administration and the Congress\nto reach a consensus on our national priorities which\nprovides adequate resources for the conduct of foreign\naffairs.\nIt would be an abdication of our responsibilities for\nthe Administration and the Congress to fail to agree\non programs which reflect the national security and\nforeign affairs priorities which the American people\nhave elected us to carry out. Such a failure to agree\nwould, under Gramm-Rudman, trigger arbitrary, automatic\nspending cuts, and thus severely limit our ability to\ncarry out those initiatives which have brought this\ncountry out of the doldrums and paralysis of the 1970s.\nAIRLINE SAFETY\nRR knows only too well that Americans are concerned about\nairline safety. One accident, one lost life, is too many.\nRR spent a cold December morning with the families who were\npart of the tragedy in Gander, Newfoundland.\nNo common thread to the tragedies in U.S. or worldwide.\nAs part of an ongoing inspection effort, the FAA has ordered\nan eight-week review, beginning next week, of airline\nengine maintenance and service facilities.\nWhile deregulation has reduced most ticket prices, there\nhave been no reductions in the FAA safety standards and\ninspection procedures.\nSecretary of Transportation has announced plans for an\nadditional 150 inspectors in 1986.\nNot one accident in 1985 has been attributed to an error by\nair traffic controllers.\nNOTE: More people have died in 1985 aviation accidents\nworldwide than in any previous year. The mysterious\nAir India crash, and the Japan Air Lines crash (lost\ntail section, Boeing 747) killed 850 people.\nDuring the holidays, a crash of a private plane into\na California shopping center and the death of\nmusician Rick Nelson drew wide media attention.\nTRADE\nRR seeks to reduce trade deficit by opening global markets\nto U.S. products, but insists on fair play. In a fair and\nopen world market, America can out-innovate, out-compete and\nout-sell anybody in the world.\nTrade Deficit\nYes, it's high, but largely because our economic performance\nhas been better than our trading partners.\nAnswer is to reduce U.S. budget deficit and for trading\npartners to improve economic performance. Recent progress\nhas adjusted dollar's value, but it will take time to reduce\ntrade deficit permanently.\nAlso taking aggressive steps to fight unfair trade practices\nin other countries.\nMust keep the problem in perspective. Our free and fair\ntrade policies have helped create nearly 10 million new jobs\nin the last three years. We are doing better than most\ncountries that have protectionist trade policies.\nTrade Legislation\nHappy to work with Congress as it seeks to restore a level\nplaying field for American business.\nInterested in seeing legislation that would strengthen our\nability to enforce fair trade. Also want authority for a\nnew round of GATT negotiations.\nC\nBut will not approve protectionist legislation.\nAnti-Trust Laws\nRR is considering amendments to our major antitrust laws --\nthe Sherman Act of 1890 and the Clayton Act of 1914 -- that\nwere recommended by the Economic Policy Council and the\nDomestic Policy Council.\nSince the days of those landmark statues, the world has\nchanged considerably.\nWe now have a global economy, demonstrated by the fact that\n70 percent of American goods face import competition.\nWe must adjust to this global economy and that adjustment\nshould include refining our antitrust laws to reflect the\ndynamics of world trade.\nBUDGET POLICY\nBefore Gramm-Rudman-Hollings was enacted, RR instructed OMB\nDirector Jim Miller to aim for a 1987 deficit no higher than\n$144 billion.\nMiller is working to produce a budget within those limits,\nand though nothing final has been decided on any specific\nitem, the budget will meet the goal.\nRR has already announced that the Administration will be\nasking for three percent growth in defense, and will not\ntouch Social Security or ask for higher taxes.\nRR will deliver a budget that will promote even greater\neconomic growth and job creation.\nPrivatization\nWithout going into specifics, it is true that privatization\nwill be a theme of this year's budget.\nMany government activities, at all levels, can be more\nefficiently carried out by the private sector at the local\nlevel.\nNOTE:\nThere have been leaks in the press that the FY 87\nbudget will propose an unprecedented effort to\nsell federal government assets; the FHA, for\nexample.\nBUDGET RECONCILIATION\nIf the budget process is to ever work, it must work at every\nstep along the way. Once both Houses agree to a budget\nresolution, they must then enact the specific budget savings\nin the form of legislation.\nIn light of the recently enacted Gramm-Rudman-Hollings bill,\nit is important now, more than ever, to achieve the maximum\nlevel of savings.\nBefore going home for Christmas, the Congress failed to\nenact a Reconciliation Bill. One reason was our threat to\nveto a bill that -- as drafted by either House -- contained\nnumerous objectionable provisions: new taxes and phoney\nsavings.\nRR will not accept new taxes in order to meet savings\ntargets set forth in the budget resolution. We must find\nthe discipline to cut deficits through spending cuts.\nFARM POLICY\nThe 1985 Farm Bill\nFood Security Act of 1985 -- the farm bill -- makes major\nstrides toward the market-orientation sought by RR, while\nmaintaining income support for Nation's farmers.\nOver time, loan rates and crop price support levels will be\nadjusted to market levels, thus helping make our commodities\nmore competitive in the international marketplace.\nMany of the more costly 1981 program changes have been\nmodified or eliminated.\nAlthough this bill is not perfect, it is an improvement over\ncurrent policy and it will allow us to keep our commitment\nto America's farmers.\nFarm Credit Legislation\nLegislation maintains a viable Farm Credit System -- a\nprivate, farmer-owned cooperative which provides more than\n1/3 of all money loaned to U.S. farmers.\nGives stronger regulatory authority to Farm Credit\nAdministration to run the system like a business, use its\nown resources efficiently.\nAllows Treasury to provide assistance only if System uses\nall its resources and can demonstrate need for extra help.\nHowever, RR believes this will not be necessary.\nFmHA Foreclosure Notices\nRR is genuinely concerned about the plight of the farmers\nand has taken steps to help; in 1985, RR directed existing\nresources to be used to help farmers in a credit crunch --\nso that the spring planting could proceed. Federal price\nsupport assistance has topped $60 billion over the past five years.\nFarmers Home Administration (FmHA) will begin notifying\nfarmers this week that if they are delinquent on federal\nloans, they must immeditaly take steps to repay or\nrestructure those loans.\nUnder a November 1983 court ruling, FmHA will outline all\noptions available to these farmers, including foreclosure.\nNOTE:\nIn November 1983, a federal judge ordered FHA to\nhalt these notifications pending completion of\nregulations giving farmers various options for\nhandling their debts. These regulations were\npublished in the Federal Register in November 1985.\nHOMELESS\nThe problem is tragically real -- particularly in our\ncities.\nIt must be addressed by each community, with\ncompassion, joining where possible the resources of\ngovernments with concerned private groups and organizations.\nIn Washington:\n--\nA new 400-bed Navy facility in Anacostia has been made\navailable to the city's homeless until a more permanent\nsolution can be implemented.\n--\nThe Administration has pledged $3.7 million to the\nCoalition for the Homeless, a non-profit group\nrepresenting several organizations that share our\nconcern for homeless persons in Washington.\n--\nRR wants to reiterate what we said just before New\nYear's: We will not forcibly evict anyone from that\nshelter so long as the cold weather remains dangerous\nto those without shelter.\nAFFIRMATIVE ACTION\nRR's view is now, and has always been, that quotas are wrong\nno matter whom they apply to and they are a disservice to\nall Americans.\nThere are various proposals to revise federal rules\nconcerning the use of quotas as they pertain to federal\ncontract compliance.\nRR has not reviewed any proposals.\nGOP Platform on Affirmative Action:\n\"The Republican Party is the party of equal rights. From\nits founding in 1854, we have promoted equality of\nopportunity\n\"Americans demand a civil rights policy premised on the\nletter of the Civil Rights Act of 1964. That law requires\nequal rights; and it is our policy to end discrimination on\naccount of sex, race, color, creed, or national origin\n\"Just as we must guarantee opportunity, we oppose attempts\nto dictate results. We will resist efforts to replace equal\nrights with discriminatory quota systems and preferential\ntreatment.\nHEALTH ISSUES\nAIDS\nAIDS education and research continues to be a top priority\nof the Administration. By the end of this year, the federal\ngovernment will have spent almost half a billion dollars to\nfight AIDS.\nWhile AIDS continues to be a major threat to the public\nhealth, it appears that the rate of increase of reported\ncases is slowing, and there is still no evidence that it can\nbe spread through casual contact.\nWe all have long-term hopes for drugs and vaccines against\nAIDS, but none are immediately at hand.\nMeanwhile, major efforts should focus on prevention, and\nlowering the risks of spreading the disease.\nCatastrophic Health Insurance\nCatastrophic Health Insurance is the purest form of health\ninsurance -- it provides protection against the financial\nconsequences of very high cost, low probability, illness or\ninjury.\nNearly 30 million Americans are without health insurance of\nany kind for at least a portion of the year.\nThis is not an new issue for RR or for this Administration.\nRR proposed a catastrophic health insurance plan for\nCalifornia.\nAnd in 1983 the Administration proposed catastrophic\nprotection for Medicaid beneficiaries. HHS Secretary Bowen\nhas written about adding catastrophic coverage under\nMedicare.\nWe are examining this important and broad issue, and will\nshortly determine if there is an appropriate role here for\nthe federal government.\nTAX REFORM\nHouse bill is a good start, not a final product. More must\nbe done to broaden the tax base, reduce tax rates further,\nand lower the cost of capital.\nRR will work for these improvements and oppose any final\nlegislation which does not meet RR's standards of true tax\nreform, especially increased economic growth.\nRR has received assurances from Senate GOP leaders that they\nwill work with him this spring to improve the bill and give\nRR something that can be signed.\nIn June 1985, one month after RR unveiled Administration\nproposal, a New York Times columnist wrote that tax reform\nbill was dead. After the bill passed the House, that\nsurprised columnist wrote: \"How did it happen?\"\nHighlights\nUnder the House bill, most median-income families of four\nwould receive substantial tax relief; the largest percentage\nreductions in taxes would be received by low income\ntaxpayers.\n-- The top individual rate is reduced to its lowest level\nsince 1931.\n:\n93 percent of all taxpayers would be in the 15 or 25\npercent bracket.\n--\n85 percent of all taxpayers, at every income level,\nwould receive a tax reduction or experience no change\nin tax.\n--\nCorporate tax rates are reduced to their lowest level\nsince 1941.\nThe personal exemption and standard deductions are increased\nsubstantially, and millions of working poor will be removed\nfrom the tax rolls.\nTax shelters are curtailed, special preferences are\neliminated or restricted, and a stiff minimum tax is\nimposed.\nPolitics of Tax Reform\nConstitution requires tax bills to start. in the House of\nRepresentatives, where the Democrats have the majority.\nHouse Ways and Means Committee, which writes tax\nlegislation, is stacked two-to-one against the Republicans.\nNaturally, House GOP would have preferred their tax reform\nvehicle to pass the House and eventually be signed into law.\nIt was apparent from the beginning that it would take\nbipartisan support to get tax reform through the House.\nThere were some understandable differences of opinion on the\ntax reform bill as this bipartisan effort was being\nassembled.\nRR is confident that what will finally emerge from the\nSenate will be a better bill -- one that even larger\nmajorities of Congress, from both sides of the aisle, can\nsupport."
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