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Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual
collections.
Collection: President, Office of the: Presidential
Briefing Papers: Records, 1981-1989
Folder Title: 11/16/1981 (Case File: 046925)
(1)
Box: 9
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
ID # 046425
DR
WHITE HOUSE
OFFICE OF RECORDS MANAGEMENT
X MEDIA
WORKSHEET
H INTERNAL
Subject Codes:
Name of Document:
BRIEFING PAPERS FOR
PR PR007.01 007.01
APPOINTMENTS PRESIDENT'S SCHEDULED FOR NOV 1681
-
/
Subject: List of invitees to national lecurity
FG006.12
Council meeting
2 Meeting with american association of
BE 006.
Minority Enterprise Business
HU 013.
Investment companies -
BE003.
3 Interview with DON LAMBRO of
PR 016.
United Feature syndicate
-
-
.
-
-
.
-
-
ROUTE TO:
ACTION
DISPOSITION
Tracking
Type
Completion
Action
Date
of
Date
Office/Agency
(Staff Name)
Code
YY/MM/DD
Response
Code YY/MM/DD
RMMATT
RSZ
8/1/1/24
C81,11,2x
Referral Note:
UNPUBLISHED
November 13,19
5:00 pm
THE WHITE HOUSE
WASHINGTON
THE PRESIDENT'S SCHEDULE
Monday, November 16, 1981
9:00 am
Staff Time
Oval Office
(30 min)
(Baker, Meese, Deaver)
9:30 am
Senior Staff Time
Oval Office
(15 min)
9:45 am
Personal Staff Time
Oval Office
(1hr45 min)
11:30 am
Dropby Meeting of Executive Board of the
Roosevelt Room
(20 min)
American Association of Minority Enter-
prise Business Investment Companies
(Elizabeth Dole)
(TAB A)
11:50 am
Haircut
W. Basement
(30 min)
12:20 pm
Lunch and Personal Staff Time
Oval Office
(60 min)
1:20 pm
Interview with Don Lambro, United Features
Oval Office
(20 min)
Syndicate
(Larry Speakes)
(TAB B)
2:00 pm
National Security Council Meeting
Cabinet Room
(60 min)
(Richard V. Allen)
(distributed separately)
3:00 pm
To the Residence for Personal Staff Time
Residence
(3 hrs)
UNPUBLISHED
David Fischer
REVISED
1FL/WW
November 16
HAND DELIVER
THE WHITE HOUSE
9:00 am
WASHINGTON
THE PRESIDENT'S SCHEDULE
Monday, November 16, 1981
9:00 am
Staff Time 9:07-9:49
Oval Office
(30 min)
(Baker, Meese, Deaver)
9 30 am
Conier Staff Time
Oval Office
(15
9:45 am
Personal Staff Time
Oval Office
(60 min)
10:45 am
Haircut - 11:22
W. Basement
(30 min)
11:15 am
Personal Staff Time 11:23 - 11:31
Oval Office
(15 min)
11:30 am
Dropby Meeting of Executive Board of the
Roosevelt Room
(20 min)
American Association of Minority Enter-
prise Business Investment Companies
(Elizabeth Dole) 11: : 32 - 11:50 -
12:00 m
Lunch and Personal Staff Time
Oval Office
(60 min)
1:10 Em, Spankes 1:15 JE 1:36
1:00 pm
Lambro Interview Preparation Time
Oval Office
(20 min)
(Larry Speakes/David Gergen) 16
1:20 pm
Interview with Don Lambro, United Features
Oval Office
(20 min)
Syndicate 1:37-2:16 Spenhas, GREEN
(Larry Speakes/David Gergen)
4:05 - 5:11
2.00 pm
National Security Council Meeting
Cabinet Room
(60 min)
(Richard V. Allen)
5'11
-
Boel Cress - OUAL -8:18
3:00 pm
To the Residence for Personal Staff Time
Residence
(3 hrs)
5:19 MKD
5:21 RESIDENCE
5:30 Jim BAKER, MASON KLEIN (RESIDENCE)
5:55
REQUEST FOR APPOINTMENTS
To:
Officer-in-charge
Appointments Center
Room 060, OEOB
NSC meeting
Please admit the following appointments on Monday, November 16
, 1981
for
THE PRESIDENT
of
:
(NAME OF PERSON TO BE VISITED)
(AGENCY)
The Vice President-
NSC
plane touched down
State
at Hi05pm- may come late,
Roger Fontaine
Fred Wettering
Secretary Alexander M. Haig, Jr.
Under Secretary William P. Clark
Dep
OSD
Deputy Secretary Frank C. Carlucci
Secretary CIA Caspan W. Weinberger
Director William J. Casey
JCS
General David C. Jones
Lt Gen Paul F. Gorman
OMB
Mr. William Schneider
USUN
Ambassador Jeane J. Kirkpatrick
The White House
Mr. Edwin Meese III
Mr. James A. Baker III
Mr. Michael K. Deaver
Mr. Richard V. Allen
Admiral James W. Nance
Ms. Janet Colson
MEETING LOCATION
White House
Carol Cleveland
Building
Requested by
Cabinet Room
376A
3044
Room No
Room
No
Telephone
Time of Meeting 4:00-5:00 p.m.
Date of request
November 16, 1981
Additions and/or changes made by telephone should be limited to three (3) names or less.
APPOINTMENTS CENTER: SIG/OEOB - 395-6046 or WHITE HOUSE - 456-6742
UNITED STATES SECRET SERVICE
SSF 2037 (05-78)
A
THE WHITE HOUSE
WASHINGTON
November 13, 1981
MEETING WITH AMERICAN ASSOCIATION OF MINORITY
ENTERPRISE BUSINESS INVESTMENT COMPANIES
DATE:
November 16, 1981
LOCATION: Roosevelt Room
TIME:
11:30 - 11:50 a.m.
Elizabeth H. Dol
and
FROM:
I.
PURPOSE: To thank the American Association of Minority
Enterprise Business Investment Companies (AA-MESBICs) for
their past support and motivate them to remain active in
their support of your economic programs.
II. BACKGROUND: The AA-MESBICs has been one of the few minority
organizations which has wholeheartedly and actively supported
your Administration.
Founded in 1971, AA-MESBICs represents 128 firms owned by
minorities and accepts, as associates, other individuals
and organizations committed to the Association's goals of
developing minority business. The group fosters capital
formation and promotes the development of capital for the
small business community. The organization also functions
as a research and information resource. It conducts seminars
with the National Association of Minority Trade Association
Executives and the Minority Venture Capital Foundation, Inc.
The Group will be briefed prior to your arrival by Murray
Weidenbaum, Norm Ture and Elizabeth Dole.
III. PARTICIPANTS: See attached list.
IV. PRESS PLAN: Open press coverage.
V.
SEQUENCE OF EVENTS:
11:30
-
11:35
a.m.
As you enter the Roosevelt Room, you
take your seat and await the arrival
of the press pool.
11:35 - 11:45 a.m.
You offer brief remarks and accept
several questions.
11:45 - 11:50 a.m.
On departing, you will pause for a hand-
shake and photo with each of the guests
as they depart.
11:50 a.m.
You return to the Oval Office.
Attachments: Talking Points
List of Participants
TALKING POINTS
--
The economic, social and political climate of this decade
will provide both formidable challenges and intriguing
opportunities for the MESBIC program.
--
Capital formation is essential to the strength of our
free enterprise system and of extreme importance in any
economic revitalization efforts. You can count on our
assistance in improving access to those existing capital
sources which have traditionally been under-utilized by
minority business.
--
A Cabinet Council Working Group on Small Business Policy,
headed by Senior Policy Advisor Dan Smith, is currently
reviewing federal minority business policy. We are
exploring how the government can appropriately encourage
equity investment in minority business.
--
I applaud your efforts in working with the industrial,
financial and business sectors to identify alternatives
for capital formation, and I thank you for all your support
over these past months. Your work, along with that of
many others, will help America's economy recover its
former strength. Thanks to organizations such as yours,
we have the mechanism in place to scale new heights of
economic success.
PARTICIPANTS
Patrick Owen Burns, Minority Equity Capital Co., Inc.
Robert A. Comey, Tower Ventures, Inc.
Richard Cummings, Alliance Enterprise Corporation
Walter Durham, MESBIC Financial Corp. of Dallas
James Fletcher, The Neighborhood Fund, Inc.
Michael Gallie, Urban National
William R. Hamilton, MCA New Ventures, Incorporated
James F. Hansley, Vanguard Investment Co., Inc.
Duane E. Hill, Equico Capital Corporation
Patric Jones, The Urban Fund of Illinois
Patricia D. Jacobs, American Association of MESBICS
Curtis McClinton, Development Management Group
Walter McMurtry, Independence Capital Formation
Ricardo J. Olivarez, Business Equity & Dev. Corp.
Gilbert Padilla, Talacu Investment Co., Inc.
Kirk W. Saunders, Norfolk Investment Co., Inc.
JoAnn H. Price, American Association of MESBICS
Charles Stanley, Amistad DOT Venture Capt. Inc.
Peter Thompson, Opportunity Capital Corp. of CA
Herbert Wilkins
Alphonso Witfield
Dr. Lewis Wright
Mrs. Winnifred Wright
American Association of MESBICs Staff
Mryna Gary Barrow
Beatrice Welters
Doris Yin
Diane Thomas
Joanne Williams
Dorothy Sankey
Kay Storck
Roy Lewis
Administration
Elizabeth H. Dole
Murray Weidenbaum
Dr. Norman B. Ture
Meredith Meecham
Thelma Duggin
Henry Zuniga
Dan Smith
B
THE WHITE HOUSE
WASHINGTON
INTERVIEW WITH DON LAMBRO, SYNDICATED COLUMNIST
DATE:
November 16, 1981
LOCATION:
Oval Office
TIME:
3:15 pm
FROM:
Larry Speakes f
I.
PURPOSE
To be interviewed by Don Lambro on general topics.
II.
BACKGROUND
Mr. Lambro would like to discuss topics such as the budget
cutting proposals status as of September, and what has happened
to them. He also would like to talk about the economy, and
politics.
Mr. Lambro is a syndicated columnist for United Feature Syndicate.
His column is carried by approximately 100 newspapers around
the country. He is the author of "Fat City, How Washington
Wastes Your Taxes," from which the President has quoted.
III. PARTICIPANTS
The President
Don Lambro
Larry Speakes
IV.
PRESS PLAN
White House photographer only.
WHCA will record the interview and provide a transcript to
Mr. Lambro and also to the Press Office.
Depending on what comes out of the interview, Mr. Lambro will
either write a story for immediate release on Tuesday morning,
November 17, or will write about the interview in his regular
column on Wednesday, November 18, which will be released the
following Monday, November 23.
V.
SEQUENCE OF EVENTS
After opening pleasantries are exchanged between the President
and Mr. Lambro, the interview will take place.
THE WHITE HOUSE
WASHINGTON
Attached are the major
talking points on the
economy from the press
conference briefing
book.
We will provide an oral
update on current breaking
news immediately prior to
the interview.
PROSPECTS FOR ECONOMIC RECOVERY
These past few days have brought some of the most dismal
economic news of your administration:
- Unemployment at the highest level in almost 6 years;
black unemployment at record levels.
- 1 million more out of work than in July.
- Autos had lowest October sales since 1958.
- Index of leading economic indicators had sharpest
drop in 19 months.
Obviously, this is no longer a slight or shallow recession.
What's gone wrong? And when will it be put right?
It has been a matter of great concern to me that we've slipped
into a deeper recession than almost anyone anticipated a few
months ago. And my economic advisers say that we can expect
at least a few more months of disappointing news (e.g., un-
employment may go somewhat higher).
This is a consequence of both the inflation and high interest
rates we inherited - and our efforts to bring them down.
- High interest rates badly hit the auto and housing
industries, for example, helping to tip us into
recession.
- Need for monetary restraint to combat inflation has also
slowed the economy.
Thus, what we're really doing today is paying price for sins
of the past.
Fortunately (and unlike some occasions in the past), we have
been able over these past few months to lay a foundation for
good economic recovery in 1982:
- Our tax cuts will provide more and more stimulus as time
goes on;
- Continuing drop in interest rates should bring revival
in housing, autos, elsewhere.
- Higher defense spending should also provide stimulus.
With this foundation in place, my advisors and, incidentally,
many private economists - now foresee recovery beginning in
the spring - or certainly by the summer of 1982.
-4-
ECONOMIC AND BUDGET ISSUES
Does your statement that the budget will not be balanced in
fiscal year '84 mean a basic change in your economic program?
When will the budget be balanced?
- There has been no change in our basic economic recovery
program. The tax cuts will be phased-in on schedule.
Spending reductions will continue. Will continue to
support monetary restraint to reduce inflation.
- Achieving a balanced budget remains an essential element of
our program. The current recession, incomplete cooperation
from Congress on spending control, the lingering of high
interest rates and the welcome progress on inflation --
have all added to the deficit size.
-- May now take a while longer for the revenue line and
expenditure line to meet.
- But, as I have said before a trillion dollar national debt
ought to be ample warning that deficit financing must be
eliminated as soon as possible -- consistent with other
elements of our program.
-- Will not relax the pressure against excess government
spending until our balanced budget goal is achieved.
Do you still expect to achieve your deficit goal of $43 billion
in FY '82? Hasn't the recession made that target obsolete?
- No denying that the unfolding recession will significantly
reduce revenues and automatically increase spending for
unemployment and related programs.
- While the depth and duration of the current slow-down are
still uncertain, it is fair to say that our 1982 deficit
goal has been overtaken by economic events.
-- Does not mean we have abandoned our intention to hold down
FY '82 spending or achieve the savings I proposed in
September.
- Congress has not yet sent me one regular appropriations
bill - and one month of the fiscal year is already over.
Most of the pending bills are way over my September budget
request.
-5-
- Let me be very firm on this point. I will not permit a
temporary increase in the deficit due to recession to
become an excuse for budget-busting on Capitol Hill.
-- excessive spending this year will only make it more
difficult to reduce the deficit in future years.
-- Economic conditions have temporarily changed, but our
on-going battle against over-spending will not cease for a
moment.
Chairman Domenici and other Senate Republicans have proposed a
$190 billion three-year package of spending and entitlement cuts
and revenue increases which they say will balance the budget in FY
'84. Are you opposing or supporting this plan - including the
$85 billion in tax increases?
- We are sticking to our comprehensive plan for economic
recovery and will not deviate on account of temporary
conditions.
- Plan always called for additional savings this year - above
and beyonnd the $35 billion already passed - and
additional savings totaling nearly $75 billion in FY '83
and FY '84.
- The Senate plan incorporates most of these planned savings;
is a most welcome initiative.
-- Have indicated that tax increases in FY '82 would
be counter-productive; could interfere with the stimulus
from the scheduled income and business tax reductions next
year.
- For the out-years, willing to consider modest revenue
measures, but only if they are packaged with the major
additional spending reductions essential to reduce the
deficit and ensure success of our overall economic program.
- Senate leadership, including Senator Domenici, shares this
view. We are not far apart. We are now working on
questions of detail, legislative strategy and timing.
Recent reports suggest the deficit picture for FY '83
and FY'84 has worsened dramatically. The Senate Budget
Committee puts the FY '84 deficit at $100 billion. House
Budget says $130 billion. And there have been reports
that internal Administration projections go as high as
S145 billion. Are these figures valid? Does your
program not add-up after all?
-6-
- Our program will add-up if we can start
subtracting from some of this reckless
speculation.
--- First, these deficit projections all depend upon
economic assumptions about inflation, interest
rates, economic growth and unemployment. Given
the rapid changes now occuring in the economy, it
will be some time before we have a complete and
reliable picture of the economic and budget
outlook two or three years down the road.
- still confident program will promote a
strong and sustained recovery next year and
that some of the more pessimistic budget
projections will not materialize.
- Second, these projections all assume business as
usual on future spending. Well, that just won't
be.
- now reviewing the entire budget for FY '83
and FY '84. Major new savings, management
economies, and program reductions will be
identified and proposed in January budget
message.
- when these savings are incorporated in the
FY '83 and FY '84 budget projections the
out-year deficit numbers will be reduced
sharply.
- I can tell you this: New budget presented
in January will quiet speculation about
$100 billion out-year deficits. Our plan
calls for a steady reduction of the deficit
- moving toward the goal of a balanced
budget. On that I will not retreat,
Your budget advisors have indicated that the House and
Senate Appropriations Committees have not achieved any of
the savings from the 12 percent cut you proposed on
September 24th, Moreover, the First Continuing
Resolution will expire in less than two weeks. What will
you do if confronted with a Second Continuing Resolution
that incorporates these higher spending levels and
essentially ignores your September savings proposals?
-7-
- Have made my strong concern about this known to
House and Senate leadership - as recently as last
Friday. Am confident that before November 20th,
they will send regular appropriations bills or a
temporary continuing resolution that achieves a
substantial proportion of these savings.
- Also have reiterated a firm warning that budget-
busting spending bills - especially in light of
the worsening deficit projections - will be
candidates for a veto. No appropriation bill or
continuing resolution will be exempt from that
test.
FARM BILL
Do you consider the pending farm bill a budget-buster?
And if so, will you veto it?
- Have always said I will evaluate bills when they
arrive on my desk; applies to the farm bill like
all others.
- Last week I met with the House and Senate
Agriculture Committee members and urged them to
write a balanced conference bill - one that
responds to legitimate farm sector needs for
better prices, but does not threaten the
budget with bigger deficits and the economy with
higher interest rates.
- They all agreed that the best help for American
farmers is reduced government spending, inflation
and interest rates.
- as written, the Senate bill meets that
criterion,
- House bill would add nearly $8 billion to
the deficit over next several years. I
insisted that the conference report be in
line with the Senate bill and they pledged
to achieve that goal.
- In the final analysis, we cannot afford a
budget-busting farm bill. No part of the
budget is going to be exempt from restraint.
-8-
ENTITLEMENTS REFORM PACKAGE
There have been reports that the $27 billion entitlement reform
package you promised on September 24th will include reductions in
Medicaid, Medicare, Food Stamps and AFDC. Won't these additional
reductions jeopardize the social safety net?
-- Details of the entitlement reform package are still under
review - so I will not indicate what programs are going to
be changed at this time.
--- However, I must insist that we remain committed to the
social safety net - the concept that people without means
of their own or the capacity to work deserve and will
continue to receive government assistance.
- As before, entitlement reforms will be directed to abuse,
benefits for the non-needy and program overlap
and duplication,
- We proved in last summer's budget reconciliation bill, and
will demonstrate again, that the runaway growth of
entitlement spending can be curbed while maintaining
support for the truly needy.
$20 BILLION LOAN GUARANTEE REDUCTION
Last week you announced a $20 billion reduction in Federal Loan
guarantees. Yet $16 billion or 80 percent was taken from GNMA --
which supports the home mortgage market. With housing starts at
nearly an all-time low, how can this action be justified?
- First, the number one affliction in the housing market
today is not inadequate government programs,
but excessively high mortgage interest rates. By
reducing government borrowing in all of its forms -- we
will reduce financial market pressures and reduce interest
rates.
- Lower interest rates are the best housing program we can
possibly offer at the present time.
- Second, we have the old familiar case as to whether the
glass is half empty of half full. Even after the GNMA
cutback, the authorized commitment level for FY '82 will
be $48 billion. That is double the actual take-down level
of 1981 and will fully accomodate the hope for recovery of
the housing market next year.
-9-
- finally, the fact remains that loan cuarantees are a form
of back-door spending, and they have exploded out of
control during the last four years.
- 43 percent of all funds available in the
private credit market will be absorbed by
Treasury borrowing or government
sponsored borrowing.
-- Our economic recovery program required that this huge
absorption of funds be reduced so that industrial firms,
small business, home-builders and farmers can finance their
operations and expansion plans at affordable rates.
- $20 billion loan guarantee reduction package is the
first installment of an on-going effort to get Uncle
Sam's sharp elbows out of the credit market.
-10-
UNPUBLISHED
November 13,198
5:00 pm
THE WHITE HOUSE
WASHINGTON
THE PRESIDENT'S SCHEDULE
Monday, November 16, 1981
9:00 am
Staff Time
Oval Office
(30 min)
(Baker, Meese, Deaver)
9:30 am
Senior Staff Time
Oval Office
(15 min)
9:45 am
Personal Staff Time
Oval Office
(1hr45 min)
10:45
Hairent
-
11:30 am
Dropby Meeting of Executive Board of the
Roosevelt Room
(20 min)
American Association of Minority Enter-
prise Business Investment Companies
(Elizabeth Dole)
(TAB A)
11.50
Haircut
W. Basement
(30 min)
12:20 pm
Lunch and Personal Staff Time
Oval Office
(60 min)
1:20 pm
Interview with Don Lambro, United Features
Oval Office
(20 min)
Syndicate
(Larry Speakes)
(TAB B)
2:00 pm
National Security Council Meeting
Cabinet Room
(60 min)
(Richard V. Allen)
(distributed separately)
3:00 pm
To the Residence for Personal Staff Time
Residence
(3 hrs)
4
A
THE WHITE HOUSE
WASHINGTON
November 13, 1981
MEETING WITH AMERICAN ASSOCIATION OF MINORITY
ENTERPRISE BUSINESS INVESTMENT COMPANIES
DATE:
November 16, 1981
LOCATION: Roosevelt Room
TIME:
11:30 - 11:50 a.m.
and
FROM:
Elizabeth H. Dole
I.
PURPOSE: To thank the American Association of Minority
Enterprise Business Investment Companies (AA-MESBICS) for
their past support and motivate them to remain active in
their support of your economic programs.
II. BACKGROUND: The AA-MESBICs has been one of the few minority
organizations which has wholeheartedly and actively supported
your Administration.
Founded in 1971, AA-MESBICs represents 128 firms owned by
minorities and accepts, as associates, other individuals
and organizations committed to the Association's goals of
developing minority business. The group fosters capital
formation and promotes the development of capital for the
small business community. The organization also functions
as a research and information resource. It conducts seminars
with the National Association of Minority Trade Association
Executives and the Minority Venture Capital Foundation, Inc.
The Group will be briefed prior to your arrival by Murray
Weidenbaum, Norm Ture and Elizabeth Dole.
III. PARTICIPANTS: See attached list.
IV. PRESS PLAN: Open press coverage.
V.
SEQUENCE OF EVENTS:
11:30 - 11:35 a.m.
As you enter the Roosevelt Room, you
take your seat and await the arrival
of the press pool.
11:35 - 11:45 a.m.
You offer brief remarks and accept
several questions.
11:45 - 11:50 a.m.
On departing, you will pause for a hand-
shake and photo with each of the guests
as they depart.
11:50 a.m.
You return to the Oval Office.
Attachments: Talking Points
List of Participants
TALKING POINTS
--
The economic, social and political climate of this decade
will provide both formidable challenges and intriguing
opportunities for the MESBIC program.
--
Capital formation is essential to the strength of our
free enterprise system and of extreme importance in any
economic revitalization efforts. You can count on our
assistance in improving access to those existing capital
sources which have traditionally been under-utilized by
minority business.
--
A Cabinet Council Working Group on Small Business Policy,
headed by Senior Policy Advisor Dan Smith, is currently
reviewing federal minority business policy. We are
exploring how the government can appropriately encourage
equity investment in minority business.
--
I applaud your efforts in working with the industrial,
financial and business sectors to identify alternatives
for capital formation, and I thank you for all your support
over these past months. Your work, along with that of
many others, will help America's economy recover its
former strength. Thanks to organizations such as yours,
we have the mechanism in place to scale new heights of
economic success.
PARTICIPANTS
Patrick Owen Burns, Minority Equity Capital Co., Inc.
Robert A. Comey, Tower Ventures, Inc.
Richard Cummings, Alliance Enterprise Corporation
Walter Durham, MESBIC Financial Corp. of Dallas
James Fletcher, The Neighborhood Fund, Inc.
Michael Gallie, Urban National
William R. Hamilton, MCA New Ventures, Incorporated
James F. Hansley, Vanguard Investment Co., Inc.
Duane E. Hill, Equico Capital Corporation
Patric Jones, The Urban Fund of Illinois
Patricia D. Jacobs, American Association of MESBICS
Curtis McClinton, Development Management Group
Walter McMurtry, Independence Capital Formation
Ricardo J. Olivarez, Business Equity & Dev. Corp.
Gilbert Padilla, Talacu Investment Co., Inc.
Kirk W. Saunders, Norfolk Investment Co., Inc.
JoAnn H. Price, American Association of MESBICS
Charles Stanley, Amistad DOT Venture Capt. Inc.
Peter Thompson, Opportunity Capital Corp. of CA
Herbert Wilkins
Alphonso Witfield
Dr. Lewis Wright
Mrs. Winnifred Wright
American Association of MESBICs Staff
Mryna Gary Barrow
Beatrice Welters
Doris Yin
Diane Thomas
Joanne Williams
Dorothy Sankey
Kay Storck
Roy Lewis
Administration
Elizabeth H. Dole
Murray Weidenbaum
Dr. Norman B. Ture
Meredith Meecham
Thelma Duggin
Henry Zuniga
Dan Smith
B
THE WHITE HOUSE
WASHINGTON
NOTE:
More material on the
Don Lambro interview
will be available
Monday morning from
OMB.
COPY - original delivered
to President previously
THE WHITE HOUSE
WASHINGTON
INTERVIEW WITH DON LAMBRO, SYNDICATED COLUMNIST
DATE:
November 16, 1981
LOCATION:
Oval Office
TIME:
3:15 pm
FROM:
Larry Speakes
F
I.
PURPOSE
To be interviewed by Don Lambro on general topics.
II.
BACKGROUND
Mr. Lambro would like to discuss topics such as the budget
cutting proposals status as of September, and what has happened
to them. He also would like to talk about the economy, and
politics.
Mr. Lambro is a syndicated columnist for United Feature Syndicate.
His column is carried by approximately 100 newspapers around
the country. He is the author of "Fat City, How Washington
Wastes Your Taxes," from which the President has quoted.
III. PARTICIPANTS
The President
Don Lambro
Larry Speakes
IV.
PRESS PLAN
White House photographer only.
WHCA will record the interview and provide a transcript to
Mr. Lambro and also to the Press Office.
Depending on what comes out of the interview, Mr. Lambro will
either write a story for immediate release on Tuesday morning,
November 17, or will write about the interview in his regular
column on Wednesday, November 18, which will be released the
following Monday, November 23.
V.
SEQUENCE OF EVENTS
After opening pleasantries are exchanged between the President
and Mr. Lambro, the interview will take place.
THE WHITE HOUSE
WASHINGTON
Attached are the major
talking points on the
economy from the press
conference briefing
book.
We will provide an oral
update on current breaking
news immediately prior to
the interview.
PROSPECTS FOR ECONOMIC RECOVERY
These past few days have brought some of the most dismal
economic news of your administration:
- Unemployment at the highest level in almost 6 years;
black unemployment at record levels.
- 1 million more out of work than in July.
- Autos had lowest October sales since 1958.
- Index of leading economic indicators had sharpest
drop in 19 months.
Obviously, this is no longer a slight or shallow recession.
What's gone wrong? And when will it be put right?
It has been a matter of great concern to me that we've slipped
into a deeper recession than almost anyone anticipated a few
months ago. And my economic advisers say that we can expect
at least a few more months of disappointing news (e.g., un-
employment may go somewhat higher).
This is a consequence of both the inflation and high interest
rates we inherited - and our efforts to bring them down.
- High interest rates badly hit the auto and housing
industries, for example, helping to tip us into
recession.
- Need for monetary restraint to combat inflation has also
slowed the economy.
Thus, what we're really doing today is paying price for sins
of the past.
Fortunately (and unlike some occasions in the past), we have
been able over these past few months to lay a foundation for
good economic recovery in 1982:
- Our tax cuts will provide more and more stimulus as time
goes on;
- Continuing drop in interest rates should bring revival
in housing, autos, elsewhere.
- Higher defense spending should also provide stimulus.
With this foundation in place, my advisors and, incidentally,
many private economists - now foresee recovery beginning in
the spring - or certainly by the summer of 1982.
-4-
ECONOMIC AND BUDGET ISSUES
Does your statement that the budget will not be balanced in
fiscal year '84 mean a basic change in your economic program?
When will the budget be balanced?
- There has been no change in our basic economic recovery
program. The tax cuts will be phased-in on schedule.
Spending reductions will continue. Will continue to
support monetary restraint to reduce inflation.
- Achieving a balanced budget remains an essential element of
our program. The current recession, incomplete cooperation
from Congress on spending control, the lingering of high
interest rates and the welcome progress on inflation --
have all added to the deficit size.
-- May now take a while longer for the revenue line and
expenditure line to meet.
- But, as I have said before a trillion dollar national debt
ought to be ample warning that deficit financing must be
eliminated as soon as possible -- consistent with other
elements of our program.
-- Will not relax the pressure against excess government
spending until our balanced budget goal is achieved.
Do you still expect to achieve your deficit goal of $43 billion
in FY '82? Hasn't the recession made that target obsolete?
- No denying that the unfolding recession will significantly
reduce revenues and automatically increase spending for
unemployment and related programs.
- While the depth and duration of the current slow-down are
still uncertain, it is fair to say that our 1982 deficit
goal has been overtaken by economic events.
-- Does not mean we have abandoned our intention to hold down
FY '82 spending or achieve the savings I proposed in
September.
- Congress has not yet sent me one regular appropriations
bill - and one month of the fiscal year is already over.
Most of the pending bills are way over my September budget
request.
-5-
- Let me be very firm on this point. I will not permit a
temporary increase in the deficit due to recession to
become an excuse for budget-busting on Capitol Hill.
-- excessive spending this year will only make it more
difficult to reduce the deficit in future years.
--- Economic conditions have temporarily changed, but our
on-going battle against over-spending will not cease for a
moment.
Chairman Domenici and other Senate Republicans have proposed a
$190 billion three-vear package of spending and entitlement cuts
and revenue increases which they say will balance the budget in FY
'84. Are you opposing or supporting this plan - including the
$85 billion in tax increases?
- We are sticking to our comprehensive plan for economic
recovery and will not deviate on account of temporary
conditions.
- Plan always called for additional savings this year - above
and beyonnd the $35 billion already passed - and
additional savings totaling nearly $75 billion in FY '83
and FY '84.
- The Senate plan incorporates most of these planned savings;
is a most welcome initiative.
-- Have indicated that tax increases in FY '82 would
be counter-productive; could interfere with the stimulus
from the scheduled income and business tax reductions next
year.
- For the out-years, willing to consider modest revenue
measures, but only if they are packaged with the major
additional spending reductions essential to reduce the
deficit and ensure success of our overall economic program.
- Senate leadership, including Senator Domenici, shares this
view. We are not far apart. We are now working on
questions of detail, legislative strategy and timing.
Recent reports suggest the deficit picture for FY '83
and FY'84 has worsened dramatically. The Senate Budget
Committee puts the FY '84 deficit at $100 billion. House
Budget says $130 billion. And there have been reports
that internal Administration projections go as high as
$145 billion. Are these figures valid? Does your
program not add-up after all?
- Our program will add-up if we can start
subtracting from some of this reckless
speculation.
-- First, these deficit projections all depend upon
economic assumptions about inflation, interest
rates, economic growth and unemployment. Given
the rapid changes now occuring in the economy, it
will be some time before we have a complete and
reliable picture of the economic and budget
outlook two or three years down the road.
- still confident program will promote a
strong and sustained recovery next year and
that some of the more pessimistic budget
projections will not materialize.
- Second, these projections all assume business as
usual on future spending. Well, that just won't
be.
- now reviewing the entire budget for FY '83
and FY '84. Major new savings, management
economies, and program reductions will be
identified and proposed in January budget
message.
- when these savings are incorporated in the
FY '83 and FY '84 budget projections the
out-year deficit numbers will be reduced
sharply.
- I can tell you this: New budget presented
in January will quiet speculation about
$100 billion out-vear deficits. Our plan
calls for a steady reduction of the deficit
- moving toward the goal of a balanced
budget, On that I will not retreat.
Your budget advisors have indicated that the House and
Senate Appropriations Committees have not achieved any of
the savings from the 12 percent cut you proposed on
September 24th. Moreover, the First Continuing
Resolution will expire in less than two weeks. What will
you do if confronted with a Second Continuing Resolution
that incorporates these higher spending levels and
essentially ignores your September savings proposals?
-7-
- Have made my strong concern about this known to
House and Senate leadership - as recently as last
Friday. Am confident that before November 20th,
they will send regular appropriations bills or a
temporary continuing resolution that achieves a
substantial proportion of these savings.
- Also have reiterated a firm warning that budget-
busting spending bills - especially in light of
the worsening deficit projections - will be
candidates for a veto. No appropriation bill or
continuing resolution will be exempt from that
test.
FARM BILL
Do you consider the pending farm bill a budget-buster?
And if SO, will you veto it?
- Have always said I will evaluate bills when they
arrive on my desk; applies to the farm bill like
all others.
- Last week I met with the House and Senate
Agriculture Committee members and urged them to
write a balanced conference bill - one that
responds to legitimate farm sector needs for
better prices, but does not threaten the
budget with bigger deficits and the economy with
higher interest rates.
- They all agreed that the best help for American
farmers is reduced government spending, inflation
and interest rates.
- as written, the Senate bill meets that
criterion.
- House bill would add nearly $8 billion to
the deficit over next several years. I
insisted that the conference report be in
line with the Senate bill and they pledged
to achieve that goal.
- In the final analysis, we cannot afford a
budget-busting farm bill. No part of the
budget is going to be exempt from restraint.
ENTITLEMENTS REFORM PACKAGE
There have been reports that the $27 billion entitlement reform
package you promised on September 24th will include reductions in
Medicaid, Medicare, Food Stamps and AFDC. won't these additional
reductions jeopardize the social safety net?
-- Details of the entitlement reform package are still under
review - SO I will not indicate what programs are going to
be changed at this time.
-- However, I must insist that we remain committed to the
social safety net - the concept that people without means
of their own or the capacity to work deserve and will
continue to receive government assistance.
- As before, entitlement reforms will be directed to abuse,
benefits for the non-needy and program overlap
and duplication.
- We proved in last summer's budget reconciliation bill, and
will demonstrate again, that the runaway growth of
entitlement spending can be curbed while maintaining
support for the truly needy.
$20 BILLION LOAN GUARANTEE REDUCTION
Last week you announced a $20 billion reduction in Federal Loan
quarantees. Yet S16 billion or 80 percent was taken from GNMA --
which supports the home mortgage market. With housing starts at
nearly an all-time low, how can this action be justified?
- First, the number one affliction in the housing market
today is not inadequate government programs,
but excessively high mortgage interest rates. By
reducing government borrowing in all of its forms -- we
will reduce financial market pressures and reduce interest
rates.
- Lower interest rates are the best housing program we can
possibly offer at the present time.
- Second, we have the old familiar case as to whether the
glass is half empty of half full. Even after the GNMA
cutback, the authorized commitment level for FY '82 will
be $48 billion. That is double the actual take-down level
of 1981 and will fully accomodate the hope for recovery of
the housing market next year.
- finally, the fact remains that loan cuarantees are a form
of back-door spending, and they have exploded out of
control during the last four years.
- 43 percent of all funds available in the
private credit market will be absorbed by
Treasury borrowing or covernment
sponsored borrowing.
-- Our economic recovery program required that this huge
absorption of funds be reduced so that industrial firms,
small business, home-builders and farmers can finance their
operations and expansion plans at affordable rates.
- $20 billion loan guarantee reduction package is the
first installment of an on-going effort to get Uncle
Sam's sharp elbows out of the credit market.