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Presidential Briefing Papers
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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:01/17/1983 (Case File: 117217)
Box: 25
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
(f)
Page 16
ID # 117217
WHITE HOUSE
OFFICE OF RECORDS MANAGEMENT
WORKSHEET
X-MEDIA
H-INTERNAL
Name of Document: BRIEFING PAPERS
FOR PRESIDENT'S
Subject Codes:
SCHEDULED
APPOINTMENTS FOR
JAN1783
PR 007 - 01
1) Subject: Meeting with U.S. Business, agriculture
CO 078 -
and fabor Representatives on Trade Matters
TA 001 -
with Japan
R
TA 004 -
2) Video taping Ja message to the California
TA
003 -
PR
011 -
Republican Convention
PL 005 - 04
ST 005 -
3) Filming ofa message for the Soo Angeles
ME 002 -
Chamber of Commerce Duaugural Ball
LG 20 ≤ A
PL 003 -
4) Sequence of Events for reception honoring
50 004 -
staff 0) the Senate and the
FG 031 -
House 1 n Representatives
ME
002 - 07
Republican members of the
BE 003 -
Copy of Dec 23,83 Brock memo decision
LA 003 -
I
containing Presidential notations
-
is attached-
-
ROUTE TO:
ACTION
DISPOSITION
Office/Agency
(Staff Name)
Action
Tracking Date
Type of
Completion Date
Code
YY/MM/DD
Response
Code
YY/MM/DD
RMHENL
RSZ
c
Referral Note:
THE SCHEDULE OF
Def
PRESIDENT RONALD RE 11611
Monday, January 17, 1983
9'.06 - OVAL
9:00 am
Staff Time
Oval Office
(30 min)
(Baker, Meese, Deaver)
4:29 BOB TUTTLE -9:31
JP 9:30 am
National Security Briefing
9:31-9:50
Oval Office
(15 min)
(Clark) Rober ROBINSON BUSH, J.B, am, mkn
ME FARLAND
9:45 am
Senior Staff Time
Oval Office
(15 min)
10:00 am
Personal Staff Time
Oval Office
(2 hrs)
Jf
12:00 m
Issues Briefing Lunch
12:03-1:03
Cabinet Room
(60 min)
(Darman/Fuller)
(distributed separately)
1:00 pm
Personal Staff Time 1:03 -
Oval Office
(60 min)
of 2:00 pm
Meeting with Ambassador Brock and Cabinet Room
(45 min)
Business/Agriculture/Labor Leaders
(Fuller)
(Tab A)
2:45 pm
Personal Staff Time 3:08-
Oval Office
(1hr45min)
4:00
4:30 pm
Taping Session (Goode) 4:02- 4:22
Diplomatic
(15 min)
(1) L. A. Chamber of Commerce
Reception Room
(2) California Republican Convention (Tab B) (draft remarks attach
5:30 pm
Reception for GOP House and
Residence
(30 min)
Senate Staff 5:30-5:46
(Duberstein)
(Tab C) (draft remarks attach
LUNCH - BU3H, am, trs, CLANK, DARMAN
DUBERSTEIN, GERGEN, FUZZER, HARDER,
SPEAKES
UNP 1/14/83
4:00 pm
PAT. FRi
The President has seen
THE SCHEDULE OF
PRESIDENT RONALD REAGAN
Monday, January 17, 1983
9:00 am
Staff Time
Oval Office
(30 min)
(Baker, Meese, Deaver)
9:30 am
National Security Briefing
Oval Office
(15 min)
(Clark)
9:45 am
Senior Staff Time
Oval Office
(15 min)
10: 00 am
Personal Staff Time
Oval Office
(2 hrs)
" :
12:00 m
Issues Briefing Lunch
Cabinet Room
(60 min)
(Darman/Fuller)
(distributed separately)
1:00 pm
Personal Staff Time
Oval Office
(60 min)
2:00 pm
Meeting with Ambassador Brock and
Cabinet Room
(45 min)
Business/Agriculture/Labor Leaders
(Fuller)
(Tab A)
2:45 pm
Personal Staff Time
Oval Office
(1hr45min)
4:
pm
Taping Session (Goode)
Diplomatic
(15 min)
(1) L. A. Chamber of Commerce
Reception Room
(2) California Republican Convention
(Tab B) (draft remarks attache
5:30 pm
Reception for GOP House and
Residence
(30 min)
Senate Staff
(Duberstein)
(Tab C) (draft remarks attache
UNP 1/14/83
4:00 pm
HIS SCHEDULE OF
PRESIDENT RONALD REAGAN
Monday, January 17, 1983
9:00 am
Staff Time
Oval Office
(30 min)
(Baker, Meese, Deaver)
9:30 am
National Security Briefing
Oval Office
(15 min)
(Clark) Rajer Robinsor
9:45 am
Senior Staff Time
Oval Office
(15 min)
10:00 am
Personal Staff Time
Oval Office
(2 hrs)
12:00 m
Issues Briefing Lunch
Cabinet Room
(60 min)
(Darman/Fuller)
(distributed separately)
1:00 pm
Personal Staff Time
-
Oval Office
(60 min)
2:00 pm
Meeting with Ambassador Brock and
Cabinet Room
(45 min)
Business/Agriculture/Labor Leaders
(Fuller)
(Tab A)
2:45 pm
Personal Staff Time
Oval Office
(1hr45min)
4:00
4:30 pm
Taping Session (Goode)
Diplomatic
(15 min)
(1) L. A. Chamber of Commerce
Reception Room
(2) California Republican Convention
(Tab B) (draft remarks attach
5:30 pm
Reception for GOP House and
Residence
(30 min)
Senate Staff
(Duberstein)
(Tab C) (draft remarks attach
UNP 1/14/83
4:00 pm
A
THE WHITE HOUSE
WASHINGTON
January 14, 1983
BRIEFING PAPER FOR THE PRESIDENT
MEETING WITH U.S. BUSINESS, AGRICULTURE AND
LABOR REPRESENTATIVES ON TRADE MATTERS
DATE:
JANUARY 17, 1983
TIME:
2:00 P.M. (45 MINUTES)
LOCATION:
CABINET ROOM
FROM:
CRAIG L. FULLER
I. PURPOSE
The meeting was recommended by Bill Brock who believed it
was important for you to have the views of several promi-
nent people concerned about Japan's trade policies prior
to you meeting with Prime Minister Nakasone later in the
week.
II. BACKGROUND
Bill Brock sent you a memorandum outlining the trade
policy concerns that are causing difficulty between our
U.S. business, agriculture and labor leaders and the
Japanese. His memorandum is attached as a reminder of the
points raised earlier. While recent trade policy an-
nouncements are being favorably received, the outside
guests at this meeting will want to brief you on remaining
problems faced in their respective areas of interest.
III. PARTICIPANTS
The Vice President
Secretary George Shultz
Secretary Donald Regan
Secretary Malcolm Baldrige
Secretary John Block
Counsellor Ed Meese
Director David Stockman
James Baker
Michael Deaver
William P. Clark
Craig L. Fuller
Lee Morgan
Caterpillar Tractor Company
Philip Caldwell
Ford Motor Company
Robert Delano
American Farm Bureau Federation
Samuel Washburn
National Cattlemen's Association
Russell Hanlin
Sunkist Growers, Inc.
Edmund Pratt, Jr.
Pfizer, Inc.
J. Paul Lyet
Sperry Corporation
Robert W. Galvin
Motorola
David Roderick
United States Steel Corporation
Robert Ingersoll
Former Ambassador to Japan,
former CEO of Borg-Warner
Douglas Fraser
United Automobile, Aerospace and
Agricultural Implement Workers
of America
George Weissman
Phillip Morris Company
IV. PRESS PLAN
White House photographer only.
V.
SEQUENCE
Greet the guests and turn to Bill Brock to open the
discussion.
THE UNITED STATES TRADE REPRESENTATIVE
WASHINGTON
20506
December 23, 1982
MEMORANDUM FOR THE PRESIDENT
FROM:
Ambassador William E. Brock
G
SUBJECT: Japanese Prime Minister Nakasone's January 17-19
Visit and the Trade Issue
Context
From the standpoint of international trade, no visit
by a foreign head of state is likely to be as
politically important for your Administration as that
of the Japanese Prime Minister. Yasuhiro Nakasone is
coming to the United States at a time when Japan's
trade policies and practices are viewed by many
Americans (correctly or not) as unfair as well as
the cause of lost jobs.
Congress has before it the domestic content bill;
other protectionist legislation seems certain to be
introduced when the new Congress meets. The year
1984 now looks as though it will be a referendum on
the trading system that has been built over the last
35 years.
In short, there is widespread and growing popular
sentiment against free trade, much of which is fueled
by Japan's continuing trade surplus with us, up this
year to $18 billion from $16 billion in 1981, and
expected to rise to some $24 billion in 1983. The
Japanese surplus in trade in manufactured goods is
even more striking. In 1981, this surplus was $27
billion and it is expected to grow to $28.5 billion
this year.
The bilateral trade imbalance per se is not the real
problem, since the United States itself has a surplus
with other trading partners, notably the European
Community. But, while Japanese goods have come to
occupy a powerful place in the U.S. marketplace, Japan
continues to maintain barriers against competitive U.S.
exports of such products as beef, citrus, cigarettes,
and a variety of manufactured goods. This creates a
strong belief among Americans that Japan's trade
policies are unfair. Particularly in a time of economic
difficulties, the Japanese appear to be attempting to
take advantage of the system by targetting exports and
restricting imports.
- 2 -
Although the Japanese have in some areas attempted to respond to
our proposals that they dismantle their import barriers, and have
made some progress, the following Japanese policies illustrate
the barriers still facing U.S. exports:
--
Standards and Certification Problems
In Japan, domestic manufacturers use a simple procedure
for obtaining certification that products are in con-
formity with specifications. Japanese manufacturers
capable of demonstrating compliance with mandatory and
voluntary requirements can have their factories "registered"
and avoid individual inspection of products.
Under the Japanese system, foreign manufacturers cannot
have their factories "registered." Instead, foreign
products are routinely subjected to "lot inspection"--
the dockside inspection of samples from each lot of
imported products to determine conformity with specifica-
tions. Thus, foreign producers are not assured that
exported products will be approved and must tolerate
burdensome, time-consuming, and expensive uncrating and
testing of their products.
Examples:
1. Metal Softball Bats: For three years U.S. producers
have sought to re-enter the Japanese market only to be
blocked by private and government barriers that prohibit
them from obtaining factory "registration" and the
mandatory "S" (for safety) mark. Currently, the U.S.
Government is pursuing this case under the GATT Agreement
on Technical Barriers to Trade (standards code) and
through extensive bilateral consultations.
2. Motor Vehicles: Japanese producers exporting to the
United States are permitted to "self-certify" compliance
with U.S. requirements and, thus, are not subjected to
costly and time-consuming individual inspections. Despite
the small number of U.S. cars imported into Japan (fewer
than 5,000 in 1980) and the fact that Japanese officials
witness tests in the United States, each and every American
vehicle sent to Japan must be individually inspected.
Other Barriers
Agricultural Quotas: Japan maintains GATT-illegal quotas on
19 categories of agricultural goods. The most important of
these, from the viewpoint of U.S. export potential, are on beef
and citrus products. The Japanese have been totally unwilling
to discuss either the ultimate elimination of these quotas or
any schedule to achieve that goal.
- 3 -
Manufactured Tobacco Products: Japan is the world's fourth
largest market for these products, including cigarettes,
cigars, and pipe tobacco. But she maintains high tariffs
(35 percent on cigarettes and cigars, 60 percent on pipe
tobacco). Moreover, a state monopoly (JTS), with exclusive
rights to production within Japan, also controls and restricts
the marketing, advertising, and distribution of all imported
tobacco products. Recent allegations in the Wall Street
Journal of discriminatory tactics by JTS sales personnel in
removing foreign cigarettes from vending machines, and taking
foreign advertising materials away from retail outlets, were
admitted by the JTS, which promised to stop the practices.
Although progress has been made on the distribution issues,
the effect of the tariff is to keep the price of U.S. cigarettes
substantially higher than their Japanese rivals. Hence, U.S.
market share, which in Europe, Hong Kong, and elsewhere ranges
from 25 to 50 percent, is confined to 1.5 percent in Japan.
Government Procurement: In 1980, after intensive negotiations,
a bilateral agreement was signed between the United States and
Japan opening procurement for Japan's Nippon Telegraph and
Telephone Corporation (NTT) to foreign manufacturers. This
agreement "equalized" the access that Japanese electronic
companies have to the U.S. telephone market. In 1981, however,
U.S. sales of sophisticated telecommunications equipment to
NTT were under $30 million, while the Japanese sold $500-$600
million of equipment to the United States. The U.S. equipment
is competitive with the Japanese in third country markets and
if the agreement is to be renewed, significant sales of U.S.
equipment must be forthcoming.
Type Approval Problems: A constant problem for U.S. manufacture
seeking to penetrate the second largest market in the world is
that of prolonged delays of official approval of the product.
A U.S. maker of headphones, for example, struggled for the
better part of a decade to get approval from NTT for use of the
headphones in combination with Japanese telephone system equip-
ment. Sometimes that period of delay is used by Japanese firms
to develop a competitive product which then rapidly dominates
the market. The U.S. semiconductor industry is one group that
particularly alleges that "buy-Japanese" attitudes and practices
often result in the disappearance of Japanese markets for
specific U.S. semiconductors once Japanese firms begin to produc
similar devices.
Industry Targetting
The Japanese Government follows an industrial policy in which
certain industries are selected as key to national economic
development, and targetted for government assistance. The
policy tools used to foster development of target industries may
effectively limit U.S. access to the fastest growing segments
- 4 -
of the Japanese market, as well as influence competition in
the United States and other export markets, by affording the
selected Japanese firms significant advantages in the form of
cost and risk subsidization. This is particularly troublesome
where Japan has targetted industries in which the United States
presently enjoys a leading position, such as computers, tele-
communications, aerospace, and others.
One problem in this area in U.S. -Japan trade relations that
will come to you for decision in the near future is that
involving a petition concerning Japanese numerical control
machine tool exports to this country. Houdaille Industries,
a domestic producer of numerically controlled (NC) machine
tools, has alleged that the Japanese Government has created and
maintained a cartel in the machine tool industry since the
early 1950s as part of Japan's industrial policy. The Japanese
Government is said to have backed the cartel with tax breaks,
concessionary loans, R&D subsidies, and other incentives,
including grants from funds generated from wagering at bicycle
and motorcycle tracks. As a result of the cartel, the Japanese
machine tool industry has become a world leader in technological
development, has gained a dominant position in its own market,
and has become a major force in the U.S. market. Houdaille
contends that these policies have unjustifiably restricted
U.S. commerce. They have requested that you use your authority
under Section 103 of the Revenue Act of 1971 to deny purchasers
of Japanese numerically controlled machine tools the investment
tax credit. An interagency task force chaired by my Office
has been investigating the allegations contained in the
petition. The results and a recommendation will be forwarded
to you in the very near future.
Japanese Objectives
Japan will have two objectives for this visit: (1) Obtain U.S.
blessing that Japan is an open market; and (2) avoid making
hard decisions by pointing to U.S. -Japan meetings already
scheduled at which trade issues are to be discussed. We should
not give such a blessing, nor should we accept future meetings
as adequate.
The Japanese have been following a pattern of no action for long
periods while pressure builds abroad, then responding with a
package of initiatives which are steps in the right direction,
but which do not result in any significant opening of the market.
When confronted with strong foreign pressure last spring, Japan
produced such a package which accomplished their objective of
getting through the Versailles Summit unscathed. No significant
progress has been made on trade issues for the remainder of 1982.
- 5 -
We see the same pattern developing again. Pressures in
Europe and the United States are extremely strong. The
Japanese are frantically trying to determine what actions
will defuse the situation sufficiently in the United States
to permit a successful Nakasone visit. The concessions
Japan will offer are unlikely to resolve any major problems.
If Nakasone does not leave his meeting with you convinced
that the trade problem is explosive and that he must move
quickly to address it, then it is unlikely we will make much
progress over the next six to twelve months. If there is no
real progress within that period, Congress may move in such
a way as to take the initiative in trade policy away from the
Administration.
There is an additional danger. It is quite possible that
the Japanese will attempt to relieve pressure in the trade
area by offering concessions in the defense or foreign aid
areas where we are also pressing them. Such a trade off is
not acceptable. Congress would reject it out of hand. The
trade, aid, and defense issues each stand on their own merits
and must be addressed separately.
Recommendations
1.
That the trade issue be given top priority treatment in
the visit, recognizing that there is no greater issue
between our two countries as perceived by the American
public.
Approve
Disapprove
2.
That the trade policy objectives of the visit be
twofold:
a.
to secure significant Japanese movement toward
U.S. objectives in the short run; and
b.
to educate Prime Minister Nakasone as to the
serious problem confronting Japan with the
United States today, and as to what steps he
needs to take in the near and mid-term future
to overcome that problem.
(Suggested talking points will be provided through the
interagency coordinating process of USTR.)
Approve
Disapprove
- 6 -
3.
That prior to Prime Minister Nakasone's visit you
meet with highly regarded leaders of the U.S. business,
farm, and labor communities who should both express
their views and listen to your views of the Japan
trade issues.
Approve RR
Disapprove
4.
That the trade aspects of the Prime Minister's visit
be coordinated by USTR through the normal interagency
process in order that the U.S. Government speak with
one voice.
Approve
Disapprove
B
THE WHITE HOUSE
WASHINGTON
January 14, 1983
TAPING SESSION
DATE: January 17, 1983
LOCATION: Diplomatic Reception Area
TIME: 4:30 PM
FROM: Mark Goode
I. PURPOSE
To video-tape a message from the President.
II. BACKGROUND
This tape will be played to the attendees at the California
Republican Convention to thank them for their hard work in
1982, and to urge continued service to the Party in the up-
coming 1984 elections.
The California Republican Party will be holding their elections
for Party officers in this annual convention.
Ed Reinecke, who currently serves as Party Vice-Chairman,
automatically replaces Chairman Tirso del Junco.
III. PARTICIPANTS
The President
IV.
PRESS PLAN
None
V.
SEQUENCE OF EVENTS
The President will read the message from a teleprompter.
attachments: to be submitted by the speechwriters office.
(Rohrabacher/AB)
January 14, 1983
3:00 p.m.
PRESIDENTIAL TAPING: CALIFORNIA REPUBLICAN CONVENTION
MONDAY, JANUARY 17, 1983
Greetings to all my friends in California. I hope you're
enjoying your convention there in Sacramento. Over the years
we've shared many conventions together and I'm sorry I cannot
personally be with you today. As you know, we're more than a
little busy here in Washington trying to accomplish some of the
things we've been working for for so long. I look back on some
of those struggles we went through in Sacramento with fond
memories. Many of you played a part in them and I just want to
thank you for all you've done over the years.
You've still got your work cut out for you. Your new
Governor, George Deukmejian, is going to need all the help he can
get. I say that because I've had experience in trying to clean
up after a Brown. I only wish that the Democratic governors of
California would quit acting as if, at the end of their term,
they're leaving the Republicans a mess. What they're really
leaving is a mess for the people -- and I'm certain it will take
all of George's and all of your efforts to put things back in
order. But we've done it before and we'll do it again.
I'd like to take this opportunity to congratulate you on
your fine showing in the November elections. The returns from
California made our evening back here a bit brighter, I can
assure you. And I know elections like that are not won by luck.
It's been said that luck is when preparation meets opportunity.
It took hard work and dedication to accomplish what you did and
Page 2
that's what the Republican party in California is all about.
That's what you are all about. Your new Senator Pete Wilson will
vouch for that. And I can't tell you how happy I am to have him
back here on the team.
Your outgoing chairman, Tirso del Junco, has done a
fantastic job and certainly he deserves the lion's share of the
credit for the victories California Republicans have wrung up in
the last two elections. Tirso, just because you're no longer
chairman don't think you can fade into the woodwork. You'll find
that one of the troubles about doing such a good job is that
people keep calling on you to do more.
With your new governor facing a hostile legislature to deal
with, you have a challenging year ahead. I can't think of a
better man to lead your effort than Ed Reinecke. Ed, we've
fought side by side on many occasions and I'm looking forward to
working with you again. Tirso and I have had an excellent
working relationship and I know that will be true for us as well,
because, as you all know, Ed and I go back a long way.
So, to all of you, the best of luck and thank you for making
your contribution to a better California and a better America.
It's only when concerned and decent people like you take the time
and effort to get involved in our free political process that it
works for those ideals that we all believe in. Thanks for doing
your part. Good luck and God bless all of you.
THE WHITE HOUSE
WASHINGTON
January 14, 1983
FILMING SESSION
DATE: January 17, 1983
LOCATION: Diplomatic Reception Area
TIME: 4:30 PM
FROM: Mark Goode
I. PURPOSE
To film a message from the President.
II. BACKGROUND
To be played at the Los Angeles Chamber of Commerce Inaugural
Ball at the Century Plaza on January 21, 1983.
III. PARTICIPANTS
The President
IV. PRESS PLAN
None
V. SEQUENCE OF EVENTS
The President will read from a teleprompter.
attachments: To be submitted by the speechwriters office.
(Elliott/AB)
January 14, 1983
5:30 p.m.
PRESIDENTIAL TAPING: L.A. CHAMBER OF COMMERCE
MONDAY, JANUARY 17, 1983
Thank you Elton, and congratulations. Good evening and
greetings to Dinah Shore and all of you attending the Inaugural
Ball at the Los Angeles Chamber of Commerce.
You probably won't be surprised if I let you in on a little
secret -- there is nothing Nancy and I would like more right now
than to be seeing our good friends in sunny, warm southern
California. Don't get me wrong. The snow is beautiful, and at
least some of the natives are friendly; but whoever said
Washington was a city of the South didn't quite have it right.
I understand you'll be doing something I'd very much like to
be a part of -- honoring some of the greats in the world of
sports. May I extend my heartiest congratulations to Muhammad
Ali, John Wooden, the Los Angeles Dodgers, and Roone Arledge of
ABC for your much deserved awards.
I just hope you understand that with the new legislative
season coming on full tilt, it was impossible for us to get away
from Washington right now.
I want you all to know, however, how much we in this
Administration appreciate the strong support your business
leaders have given us. I believe we've come a long way in
addressing fundamental problems that we Americans had neglected
for too long. If, together, we face up to the tough decisions
that still lie ahead, 1983 will be a good year for America.
Believe me, your support means more now than ever before.
Page 2
Let me extend especially good wishes to your incoming
chairman, Pete Voegelin, for a most successful year, and to
congratulate outgoing chairman Will Carr for a job well done in
1982, including the appointment of my good friend Ted Bruinsma as
your first full-time president. I understand that your annual
leadership mission will be coming to Washington in April, and I
certainly hope my schedule permits me to meet with you at that
time. Until then, have a wonderful party. Good night and God
bless you.
C
SEQUENCE OF EVENTS
Reception Honoring House and
Senate Senior Staff
Monday, January 17, 1983
FROM
Muffie Brandon
nuffs Brandon
4:45 p.m.
Guests begin to arrive the SouthWest Gate,
Diplomatic Reception Room, and are led up
the Grand Staircase to the State Dining
Room where they may be served refreshments.
5:15 p.m.
All guests arriving at this time should go
directly to the East Room.
5:20 p.m.
All guests should begin to proceed to the
East Room to prepare for the arrival of
THE PRESIDENT.
5:25 p.m.
An aisle is formed from the entrance of
the East Room to the platform.
5:30 p.m.
THE PRESIDENT arrives the State Floor via
the elevator and proceeds down the Cross Hall.
THE PRESIDENT is announced into the East Room
and proceeds to the platform to make remarks.
Following THE PRESIDENT'S remarks, he mixes
and mingles briefly with the guests.
6:00 p.m.
THE PRESIDENT proceeds to the Residence via the
Cross hall.
All guests begin to depart.
(Elliott/AB)
January 14, 1983
4:00 p.m.
PRESIDENTIAL REMARKS: RECEPTION. FOR GOP
HOUSE AND SENATE STAFF
MONDAY, JANUARY 17, 1983
Thank you very much. It's wonderful having all of you with
us. But I have a question. If your staff is here, and our staff
is here, who's on the Hill watching over Tip O'Neill's and Ted
Kennedy's staffs? If they get wind you've gone fishing, there's
no telling what mischief they'll cook up next.
Well, to borrow that old expression, I'm sure you wonder why
we asked you here today. That's easy: to express our heartfelt
thanks for all your cooperation and support -- and to make sure
you know how much we'll be counting on you during the 98th
Congress.
We're hearing a lot of noise from the other side -- it's
just a lot of hot air -- that what we're doing for America is
wrong, and must be changed. Well, let's get something straight:
Creating opportunity, permitting people to keep more of what they
earn, placing limits on the size and power of Government, making
the United States a more reliable defender of independence,
democracy and human rights around the world and, through it all,
trusting in the God who has blessed our land -- these are not
some strange, new collection of ideas. They are the heart and
soul of America, a powerful force for good -- and we will not
betray them.
I am convinced that 1983 will be a year of new growth, jobs
and opportunities for the American people. We've made dramatic
progress against the record inflation and interest rates we
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inherited. We've reduced tax rates for every working family in
America -- the first time people have received a decent break in
nearly 20 years. And their tax rates will be indexed in the
future to prevent inflation from robbing them when they get a
cost-of-living raise.
I'm proud of our tax cut; the people need it. No one has
the right to take it away from them -- and no one will. Sure we
face a large projected deficit, and we're working to reduce it.
But let's always remember -- the American people are shouldering
the highest tax burden in peacetime history. We do not face
those large deficits because our people are not taxed enough; we
face those deficits because this Government still spends too
much.
We must not allow anyone to destroy the good that has been
accomplished just as the skies are starting to clear. We're
seeing the beginning of a solid recovery in housing, new strength
in autos, a surge in personal savings and equity investments.
And we're witnessing a new wave of American technological
leadership in computers that is revolutionizing the entire
concept of communications.
Our great challenge is to make the future work for us: we
can create an agenda of growth that looks to the future rather
than the past, an agenda that provides incentives and retrains
today's workers for tomorrow's world; and we can pursue an agenda
for peace in which American strength and determination lead not
just to arms limitations, but to actual arms reductions.
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This is a time to believe in ourselves, a time to be
optimistic about our country. An optimist, as you might have
heard, is that fellow who, when told his. tire is flat, replies
"Yes, but only on the bottom." I can't resist repeating a story
that I told our appointees last year, because it describes so
well that idea of optimism.
A man had two sons, and he was very disturbed about them.
One was a pessimist beyond recall, and the other one was an
optimist beyond reason. He talked to a child psychiatrist who
made a suggestion. He said, "I think we can fix that. If He said,
"We'll get a room and we'll fill it with the most wonderful toys
any boy ever had. " "And," he said, "We'll put the pessimist in
and when he finds out they're for him, he'll get over being a
pessimist.' "
His father said, "What will you do about the optimist?"
"Well," he said, "I have a friend who's got a racing stable and
they clean out the stalls every morning." "And," he said, "I can
get quite an amount of that substance. We'll put that in another
room, and when the optimist who's seen his brother get all those
toys is then shown into that room and sees what's waiting for
him, he'll get over being an optimist."
Well, they did it, and they waited about 5 minutes. And
then they opened the door, and the pessimist was sitting there
crying as if his heart would break. He said, "I know somebody's
going to come in and take these away from me."
Then they went down to the other room and they opened the
door and there was the optimist, happy as a clam, throwing that
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stuff over his shoulders as fast as he could. And they said,
"What are you doing?" And he says, "There's got to be a pony in
here somewhere."
Well I'm confident that if we all do our best today and in
the months ahead, we can finish the job we've begun. Don't let
the pessimists get you down. Americans are becoming more
confident about their future again -- and they're doing it with
good reason, because all the indicators point to recovery.
Together, we can make today's Government and today's America
a model for generations to come. That is our trust. That's why
we're here. And that's why I want to thank each one of you
today, from the bottom of my heart, for all that you've done and
all that you're doing to make America great again. I'm counting
on you, and, what's more important, so are the American people.
God bless you all. Thank you.