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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: 05/05/1983 (Case File: 144705) (2)
Box: 29
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
SCHEDULE OF THE PRESIDENT
SAN ANTONIO, TEXAS
THURSDAY, MAY 5, 1983
EVENTS:
1)
Open Airport Arrival
2)
Cinco de Mayo Celebration
3)
San Antonio City Council Reception
4)
Texas GOP Photo Opportunity
DRESS:
Men's Business Suit
WEATHER:
Mostly Sunny; Mid-80's
11:05 a.m.
Proceed to South Lawn for Marine One boarding.
PHOTO COVERAGE
11:10 a.m.
Marine One departs enroute Andrews Air Force Base.
11:25 a.m.
Marine One arrives Andrews Air Force Base.
Deplane and proceed to Air Force One for boarding.
OPEN PRESS COVERAGE
11:30 a.m.
Air Force One departs enroute San Antonio, Texas.
CDT
Flight Time:
3 hrs. 10 mins.
Time Change:
- 1 hr.
Food Service:
Lunch
Guests Aboard:
Cong. D. Hunter
Cong. E. Rudd
Cong. B. Stump
F. Farenkopf
J. Salgado
H. Herrera
1:40 p.m.
Air Force One arrives Kelly Air Force Base, San
Antonio, Texas. OPEN PRESS COVERAGE, LIVE LOCAL
TELEVISION
Proceed to base of Air Force One steps.
Met by:
Gen. Thomas Ryan, USAF, Commander
Air Training Command
Mr. Henry Cisneros, Mayor, San
Antonio
Personal Schedule - San Antonio
Page 2
Mrs. Mary Alice Cisneros
Lt. Gen. Edward Partain, USA,
Commander, 5th Army
Maj. Gen. Waymond Nutt, USAF,
Commander, San Antonio Logistics
Center
Col. John Webb, USAF, Commanding
Officer, Kelly Air Force Base
1:45 p.m.
Accompanied by Gen. Ryan, proceed to honors stand.
CIEN PRESS COVERAGE, LIVE LOCAL TELEVISION
National Anthem
Accompanied by Gen. Ryan and Cmdr. Sutton,
proceed to review three flights of Basic Trainees.
OPEN PRESS COVERAGE, LIVE LOCAL TELEVISION
1:53 p.m.
Conclude review and proceed to fence line to
shake hands with base personnel and families.
OPEN PRESS COVERAGE, LIVE LOCAL TELEVISION
Proceed to motorcade for boarding.
1:55 p.m.
Motorcade departs Kelly Air Force Base enroute
Plaza Nueva for Cinco de Mayo celebration. Drive
Time: 15 mins. In Limo: H. Cisneros; M.
Cisneros; J. Baker.
2:10 p.m.
Motorcade arrives Plaza Nueva. LIVE LOCAL
TELEVISION
Accompanied by Mayor Cisneros, proceed to holding
area.
2:15 p.m.
Accompanied by Mayor Cisneros, proceed to
off-stage announcement area.
Announcement off-stage
Accompanied by Mayor Cisneros, proceed to stage
and take seat. OPEN PRESS COVERAGE, LIVE LOCAL
TELEVISION
2:18 p.m.
Program begins.
2:27 p.m.
Mayor Cisneros makes brief remarks
and introduction.
Personal Schedule - San Antonio
Page 3
2:32 p.m.
Proceed to podium for remarks. OPEN PRESS
COVERAGE, LIVE LOCAL TELEVISION
NOTE: During reference to "All
American City" Award in remarks,
pause briefly while two ROTC
Cadets unveil replica of shield.
2:47 p.m.
Conclude remarks and proceed with Mayor Cisneros
to Mexican-American Food Booths to sample
selection of foods. PRESS POOL COVERAGE, LIVE
LOCAL TELEVISION
2:53 p.m.
Accompanied by Mayor and Mrs. Cisneros, proceed
to limousine for boarding.
2:55 p.m.
Limousine departs enroute McAllister's Old
Place. Drive Time: 1 min. In Limo: H.
Cisneros; M. Cisneros.
2:56 p.m.
Limousine arrives McAllister's Old Place. CLOSED
PRESS COVERAGE
Accompanied by Mayor and Mrs. Cisneros, proceed
to holding room.
3:03 p.m.
Accompanied by Mayor and Mrs. Cisneros, proceed
to Upper Level Dining Room.
3:05 p.m.
Arrive Upper Level Dining Room for Reception with
San Antonio City Council and distinguished San
Antonians. OFFICIAL PHOTOGRAPHER ONLY
Greet each guest and make brief, informal remarks.
3:20 p.m.
Proceed to Lower Level Dining Room.
3:22 p.m.
Arrive Lower Level Dining Room for photo
opportunity with Texas GOP officials and
supporters. OFFICIAL PHOTOGRAPHER ONLY
3:32 p.m.
Proceed to motorcade for boarding.
3:35 p.m.
Motorcade departs McAllister's Old Place enroute
Kelly Air Force Base. Drive Time: 15 mins. In
Limo: H. Cisneros; M. Cisneros; J. Baker.
3:50 p.m.
Motorcade arrives Kelly Air Force Base. OPEN
PRESS COVERAGE
Personal Schedule - San Antonio
Page 4
Bid farewell to Mayor and Mrs. Cisneros and Base
Commander Col. Webb and proceed to Air Force One
for boarding.
3:55 p.m.
Air Force One departs enroute Phoenix, Arizona.
CDT
Flight Time:
2 hrs. 40 mins.
Time Change:
- 2 hrs.
Food Service:
Snacks
Guests Aboard:
Cong. D. Hunter
Cong. E. Rudd
Cong. B. Stump
F. Farenkopf
THE WHITE HOUSE
WASHINGTON
SCHEDULE OF THE PRESIDENT
THURSDAY, MAY 5, 1983
FRIDAY, MAY 6, 1983
PHOENIX, ARIZONA
EVENTS: Thursday, May 5, 1983
1) Arrive Phoenix
2) Private Time
Friday, May 6, 1983
1) Sheriff's POSSE of Sun City
2) National Rifle Association Address
3) Arizona GOP Photo Opportunity
4) Depart en route Santa Barbara
DRESS: Men's Business Suit
WEATHER: Partly Cloudy, Low 80's
Thursday, May 5, 1983
4:35 p.m.
Air Force One arrives Phoenix Sky Harbor International
MST
Airport. Deplane and proceed to motorcade for
boarding. OPEN PRESS COVERAGE
Met by:
Major General and Mrs. John Smith,
Adjutant General, Arizona Air National
Guard
Colonel and Mrs. Dave Manning, Commander
Arizona Air National Guard
Captain Charles Martin Stevens, Director,
Airport Security
4:40 p.m.
Depart en route Arizona Biltmore Hotel. Drive Time:
15 mins. In Limo: M. Deaver
4:55 p.m.
Arrive Arizona Biltmore Hotel and proceed to suite.
REMAIN OVERNIGHT: ARIZONA BILTMORE HOTEL
Friday, May 6, 1983
9:30 a.m. Proceed to motorcade for boarding.
9:35 a.m.
Depart en route Granada Park landing zone. Drive Time:
5 mins.
9:40 a.m.
Arrive Granada Park landing zone and proceed to Marine
One for boarding.
9:45 a.m.
Marine One departs en route Shepherd of the Desert
Lutheran Church landing zone.
9:55 a.m.
Marine One arrives Church landing zone. Deplane and
proceed to motorcade for boarding.
10:00 a.m.
Depart en route Sheriff's POSSE of Sun City
Headquarters. Drive Time: 1 min.
10:01 a.m.
Arrive POSSE Headquarters and proceed to Briefing Room
for briefing on POSSE program. EXPANDED POOL COVERAGE
Met by:
Jerry Hill, Sheriff, Maricopa County
Sheriff's Department
Everett Price, Captain, Maricopa County
Sheriff's Department
Edward Leyva, Lieutenant, Maricopa County
Sheriff's Department
Maureen "Babe" Barkdoll, Commander,
Sheriff's POSSE of Sun City
10:05 a.m.
Escorted by greeters, proceed to Squad Room and take
seat in first row.
Daily patrol briefing and procedural
demonstrations.
Sheriff Hill makes introduction.
Proceed to podium for Brief Remarks. EXPANDED POOL
COVERAGE
Conclude Remarks and proceed to seat at table.
Sign 1983 Older American's Month Proclamation.
Commander Barkdoll makes presentation of
cap, procedural manual and Honorary
Membership in Sheriff's POSSE of Sun City.
Dismiss the officers from the morning briefing.
10:20 a.m.
Depart POSSE headquarters and proceed to motorcade for
boarding.
10:25 a.m.
Depart en route Church landing zone. Drive Time: 1 min
10:26 a.m.
Arrive landing zone and proceed to Marine One for
boarding.
10:30 a.m.
Marine One departs en route Granada Park landing zone.
10:40 a.m.
Arrive Granada Park landing zone and proceed to
motorcade for boarding.
10:45 a.m.
Depart Granada Park landing zone en route Arizona
Biltmore. Drive Time: 5 mins.
10:50 a.m.
Arrive Arizona Biltmore and proceed to suite.
PRIVATE TIME: 1 hr. 40 mins.
12:30 p.m.
Proceed to motorcade for boarding.
12:35 p.m.
Depart en route Phoenix Civic Plaza for National Rifle
Association address. Drive Time: 20 mins.
12:55 p.m.
Arrive Phoenix Civic Plaza and proceed to holding room.
Arrive holding room.
12:58 p.m.
Depart holding room and proceed to off-stage
announcement area.
Proceed to dais and take seat.
Sen. James A. McClure, R-Idaho, makes
introduction.
1:00 p.m.
Proceed to podium and make remarks. OPEN PRESS COVERAGE
1:20 p.m.
Conclude remarks and proceed to holding room.
1:25 p.m.
Depart holding room en route motorcade for boarding.
1:30 p.m.
Depart Phoenix Civic Plaza en route Arizona Biltmore.
Drive Time: 20 mins.
1:50 p.m.
Arrive Biltmore and proceed to Valley Room.
1:55 p.m.
Arrive Valley Room for Arizona GOP photo opportunity.
OFFICIAL PHOTOGRAPHER
2:05 p.m.
Depart Valley Room and proceed to suite.
PRIVATE TIME: 2 hrs.
4:05 p.m.
Accompanied by Mrs. Reagan, proceed to motorcade for
boarding.
4:10 p.m.
Depart en route Phoenix Sky Harbor International
Airport. Drive Time: 15 mins.
4:25 p.m.
Arrive Phoenix Sky Harbor International Airport and
proceed to Air Force One for boarding. OPEN PRESS
COVERAGE
4:30 p.m.
Air Force One departs en route Pt. Mugu Naval Air
Station.
Flight Time: 1 hr. 30 mins.
Time Change: None
Food Service: Snacks
D
THE WHITE HOUSE
WASHINGTON
May 4, 1983
MEMORANDUM FOR THE PRESIDENT
FROM:
CRAIG L. FULLER
SUBJECT:
Background material for San Antonio trip
Attached is background material provided by various
departments on issues which affect San Antonio and may arise
during your trip.
1.
A report from Treasury on the status of efforts to
assist Mexico with its current financial difficulties.
2.
A report from Justice summarizing the key features of
the immigration bill recently passed by the Senate, with
special emphasis on our rationale for legalization.
3.
A status report on enterprise zone legislation which has
been supported by Mayor Henry Cisneros. He has been to
several meetings with you on this issue.
4.
A status report from Commerce on the establishment of a
foreign trade zone in San Antonio which was approved by
Secretary Baldrige last September.
5.
A report from SBA on efforts to expand participation in
the 8 (a) program (minority business).
6.
News clips from San Antonio regarding an allegation made
against Veterans Administrator Harry Walters and his
response.
STATUS OF MEXICAN FINANCIAL SITUATION
O
Mexico's economic adjustment program is underway and the
financial package is falling into place.
Emergency Financing
O
The U.S. provided almost $3.6 billion (FRB, CCC, oil purchases,
Treasury).
o
Ten other creditor nations provided $0.9 billion through the
Bank for International Settlements (BIS).
IMF Credit
o $3.9 billion 3-year EFF approved in December.
Trade Finance
O
An additional $2 billion package of official export credits/
guarantees was assembled in December -- half from the United
States.
Bank Financings
Commercial banks have agreed to lend $5 billion this year and to
roll over about $20 billion in most public sector debt maturing
between August 23, 1983 and December 31, 1984.
O
The GOM has recently announced various mechanisms for reschedul-
ing Mexican private sector debt to foreign suppliers and foreign
financial institutions.
Economic Prospects
0
Mexico is in compliance with its end-March IMF quarterly targets.
Mexicans do not think they will need additional financial
assistance this year.
Many U.S. investors have lost nearly 50% on Mex-dollar
deposits and border trade has been disrupted. While we
cannot expect a return to the boom period of US-Mexican
trade 1978-1981, the Mexican program should restore a
more healthy US-Mexican economic and trade relationship.
Treasury
May 3, 1983
BORDER SITUATION
We are aware of the disruption of commerce in the Mexican
border region, which has resulted from the deterioration in
economic conditions in Mexico. The current Mexican financial
situation, characterized by serious inflationary problems,
heavy foreign indebtedness, and a critical shortage of foreign
exchange, has caused a number of difficult and unfortunate
problems for American citizens and companies both in Mexico
and in the United States and for cities along the border.
The United States is making major efforts to contribute to
an orderly resolution of these problems, by encouraging and
supporting the Mexican authorities in undertaking a sound
economic adjustment program in cooperation with the Internation-
al Monetary Fund (IMF) and in discussing their debt problems
with private banks. Adoption of sound policies to stabilize
the Mexican economy and strengthen Mexico's external financial
position is essential if Mexico is to reestablish the stability
of the peso and restore order in its trading relationships,
including commerce along the border.
Fortunately the economic situation, while still difficult,
is improving. In late December, the Executive Board of the
IMF approved a $3.9 billion three-year economic stabilization
program. The IMF has disbursed about $325 million under this
arrangement. The Government of Mexico and over 500 commercial
banks with exposure in Mexico are in the process of restructur-
ing most public sector debt -- $20 billion -- maturing between
August 23, 1982 and December 31, 1984 and have signed a new
loan for 1983 totalling $5 billion. An agreement has also
been reached on the repayment of approximately $600 million
in overdue private sector interest payments and arrangements
for the repayment of Mexico private sector principal payments
to foreign suppliers and financial institutions have been
announced recently.
Under the new foreign exchange system which began on Decem-
ber 20 there is now a "free" market -- about 149 pesos to the
dollar -- which can be used to exchange pesos for dollars. Also
there are no longer comprehensive restrictions on purchasing
and transfering dollars out of the country, but dollars are
scarce.
While these latest developments will not resolve all the
problems of the border area, they are steps in the right
direction. The U.S. Government will continue its efforts to
encourage an orderly and effective resolution of those problems
in a manner which will benefit all forms of U.S. commerce
with Mexico and the United States economy generally.
Treasury
May 3, 1983
Mex-dollar Accounts
Question: What is the U.S.G. doing about the Mex-dollar accounts?
Answer:
Unfortunately, the difficult Mexican financial situation
has caused a number of problems for American companies
and citizens. Over the past few years, investments
in dollar-denominated financial assets -- Mex-dollar
accounts -- increased rapidly. The individuals and
companies who invested in these accounts necessarily
assumed some risk in taking advantage of higher yields
paid by Mexican institutions. In addition, some
investors may have been attracted by Mexican secrecy
laws and, in some cases, used these to avoid paying
U.S. taxes.
Withdrawals from Mex-dollar accounts are now payable
only in pesos at the applicable exchange rate at the
time of withdrawal. Thus, the dollar-denominated
accounts are being redeemed, but only in pesos.
Admittedly, there have been substantial losses, and
prior to December 20 there was no legal way for in-
vestors to convert pesos into dollars and send them
back to the U.S. However, under the foreign exchange
system which began on December 20 there is a "free"
market (currently about 149 pesos to the dollar)
which can be used to exchange pesos for dollars.
On the positive side, there are no longer comprehensive
restrictions on purchasing and transferring dollars,
although dollars are scarce. There will be, nonethe-
less, a capital loss upon converting what were Mex-
dollars to U.S. dollars. The amount of this loss
will depend on the exchange rates at which the tran-
sactions are made. (In many cases Mex-dollar had to
be converted into pesos at 70-80 pesos per dollar
and re-converted at about 150 pesos per dollar
a loss of 50 percent.)
Treasury officials raised this issue with GOM officials
a number of times, but because of the extreme shortage
of foreign exchange it would be difficult for the GOM
to address this issue at this time.
Treasury
May 2, 1983
SS
EXTRAORDINARY FINANCING: MEXICO
SOURCES
PROGRAM
AMOUNT
COMMENTS
IMF
Three-year EFF,
$3.9 billion
$327 million disbursed
approved Dec.
(SDR 3.6 billion
in early January 1983.
23, 1982.
450% of quota).
$980 million to be
disbursed in 3 equal
installments in May,
August and November.
Banks
S-T & M-T
90-day rollover,
$10 billion.
Second extension to
Moratorium
agreed 8/20/82.
8/83 approved.
Bridge
to $5 billion
$434 million
Disbursed 2/25; used
new money
mostly to repay FED.
M-T loans
"New" money.
$5 billion for
First drawing of $1.7
to Public
6 yrs (includes
1983.
billion disbursed
Sector
3 yrs grace).
mid-March. 2 1/4 over
LIBOR or 2 1/8 over
price 1-time creditor
choice; 1/2% front end
fee.
M-T reschedl
8 yrs (includes
$20 billion.
Agreement under
of Public
4 yrs grace).
negotiation.
Sector Debt
Official
FED Swap
Bridge to IMF
$700 million
$327 million repaid
1/83 from IMF drawing;
remaining $373 million
repaid 2/25/83 from
commercial bank bridge.
BIS Swap
Bridge to IMF,
$1.85 billion
To be repaid no later
approved 8/82.
(U.S.: ESF $600,
than 8/23/83.
Fed $325).
Other USG
oil advance pay,
$1 billion.
For Strategic Petroleum
disbursed 8/82.
Reserve.
CCC
$1.7 billion.
$1.4 billion in FY83,
$0.3 billion in FY84.
Exim
$300 million.
Above and beyond normal
annual authorizations.
Arrears
Private sector
$600 million
GOM has announced
interest.
(estimate).
mechanism to reduce.
Private sector
amount
Mechanisms to handle
principal
unknown
these arrears announced.
MEXICO: OFFICIAL FINANCIAL ASSISTANCE
O In response to Mexico's financial crisis, the United States
assisted in developing a package in August 1982 totalling
$3.85 billion. The package included:
-- $1 billion advance payment by the Department of Energy for
the purchase of crude oil for the SPR.
-- $1 billion in CCC guarantees for Mexico in FY 1983.
-- $925 million ($600 million ESF and $325 FED) of the $1.85
billion in short-term assistance from eleven industrialized
countries arranged under the auspices of the BIS. The
agreement was announced on August 30. The final disburse-
ment was made on February 23, 1983.
o In addition to the above, in early August the GOM drew its
$700 million swap with the Federal Reserve. $327 million was
repaid out of Mexico's first drawing from the IMF under the
three-year $3.9 billion EFF which was approved on December 23,
1982. The remaining $373 million was repaid on February 25,
1983 from a commercial bank bridge loan to the first drawing
of the $5 billion commercial bank jumbo loan.
O The $1.85 billion BIS arrangement will be repaid out of IMF
resources as they become available with final payment due no
later than August 23, 1983. Since the U.S. share of the BIS
loan is 50%, the U.S. will receive 50% of each repayment.
Repa ment Schedule
May 16, 1983
IMF drawing of $325 million used as
partial payment of BIS arrangement
August 16, 1983
IMF drawing of $325 million used as
partial payment of BIS arrangement
August 23, 1983
Mexico to repay remaining $1,200
million of BIS arrangement
Treasury/IDN
May 2, 1983
Mex: IV
MEXICO: FINANCING FROM COMMERCIAL BANKS
Since August 23 the commercial banks have been rolling over
most public sector principal payments coming due.
An initial 90-day moratorium ended on November 23, 1982
and has been extended a second time to August 23, 1983.
On February 25, the GOM and about 530 commercial banks signed
an agreement on new loans totalling $5 billion for 1983.
The loan will be disbursed in 4 installments coinciding
approximately with IMF disbursements.
A first disbursement of $1.7 billion was made on March 24.
The remaining three installments of $1.1 billion each
will coincide with the May, August and November 1983 IMF
disbursements.
A $434 million bridge to the $5 billion loan was disbursed
on February 25.
The loans will be repaid in 6 years with a 3 year grace
period.
The interest rate will be 2 1/4% over LIBOR or 2 1/8% over
prime.
There will be a 1/2% "front-end" commitment fee on the
amount of the new loan -- $5 billion -- payable quarterly
in 1983.
The GOM and Commercial Bank Advisory Group have come to agree-
ment on the principles of a restructuring plan for most public
sector debt maturing between August 23, 1982 and December 31,
1984. (MDB debt, export credits and bonds are excluded.)
A sample rescheduling document will soon be sent to
commercial banks for review.
The debt will be repaid in 8 years which includes a 4
year grace period.
The interest rate will be 1 7/8% over LIBOR or 1 3/4% over
prime at the option of the creditor.
In addition, there will be a 1% "front-end" restructuring
fee payable in 4 quarterly installments beginning on the
restructuring date.
An agreement has also been reached on the repayment of approxi-
mately $600 million in overdue private sector interest payments.
- 2 -
Mexican private sector debtors are making interest pay-
ments in pesos to the Bank of Mexico which is assuming
the foreign exchange obligation.
A first payment of $60 million ( 10% of the outstanding
balances as of January 31, 1983) was made on February 10.
A second $36 million payment was made in March.
Further monthly installments will be made depend-
ing on the availability of foreign exchange.
Any outstanding payments on September 30, 1983 will be re-
financed at that time on conditions to be determined.
In regards to Mexican private sector debt, the GOM has announc-
ed various mechanisms for rescheduling private sector debt to
suppliers and to foreign financial institutions.
Foreign creditors are assessing the mechanisms and consid-
ering whether they want to participate.
The U.S. and a number of other creditor countries are discuss-
ing the possibility of a rescheduling of Mexican private
sector debt from or guaranteed and insured by official export
credit agencies, such as the Export Import Bank.
A decision on such a rescheduling is expected by the end
of May.
Treasury/IDN
May 2, 1983
MEXICO: ECONOMIC ASSESSMENT
Mexico registered high rates of economic growth and a rapid
expansion in employment from 1977 to 1981. However, these were
accompanied by accelerating inflation and a weakening of the
country's external position due to over-expansionary domestic
economic policies and growing current account deficits financed
by foreign bank loans and domestic credit expansion. Large scale
capital flight, low levels of international reserves and internation-
al concern about Mexico's ability to finance its growing deficits
forced the GOM to withdraw from the foreign exchange market and allow
the peso to float three times during 1982.
However, by mid-August international reserves were virtually
exhausted and Mexico was unable to service its external debt
obligations. Mexico requested that its commercial bank creditors
roll Over for 90-days most public sector debt payments coming
due. To tide Mexico over until an IMF stabilization program
could be arranged the U.S.G. made a $1 billion advance payment
for oil deliveries and committed $1 billion in Commodity Credit
Corporation guarantees. In addition, the U.S. contributed half
of a the $1.85 billion short-term line of credit arranged
under the auspices of the Bank for International Settlements.
A three-year $3.9 billion IMF program was approved in
December 1982. Necessary 1983 financing which is dependent on a
package of new credits from foreign banks and official creditors
and refinancing of most principal payments is close to completion.
o Real growth in 1982 was about 2%, compared to average growth
of 8.5% in the 4 years 1978-81.
Real growth in 1983 is expected to decline by about 2%,
but should increase by 3% in 1984 and 6% in 1985.
Inflation averaged about 57.5% in 1982 and is expected to
average 75% in 1983, compared to a 28% increase in the
CPI in 1981.
-- Inflation should decline throughout the year ending
at about a 55% annual rate by the end of 1983 com-
pared to an annual rate of 98.8% at the end of
1982.
Ml increased at a 42% annual rate in August 1982 (latest
available data), compared to a 33% annual rate in both
1980 and 1981.
The large public sector deficit as a percentage of GDP is
projected to decline significantly in the next three years.
Mex:I
- 2 -
00
The IMF program requires that the public sector deficit
be reduced from an estimated 16.5% of GDP in 1982 to 8.5%
in 1983, 5.5% in 1984 and 3.5% in 1985.
00
The public sector deficit as a share of GDP averaged about
6.5% during the four year period 1977-1980.
00
The public sector deficit totalled $35 billion in 1981
compared to $14 billion in 1980. The deficit doubled in
peso terms in 1982 (but declined to $30 billion in dollar
terms because of the sizeable devaluation of the peso).
The deficits have been largely financed by foreign borrow-
ing and by the Bank of Mexico.
O
Mexico is beginning to cope with its weakened international
economic position.
It has embarked on an IMF stabilization program, is follow-
ing a more realistic exchange rate policy and foreign
financing for 1983 is assured as long as Mexico remains in
compliance with its IMF program.
00
Commercial banks are rolling over until August 23 most
public sector debt coming due. They have approved $5
billion in new credits for 1983 and are finalizing the
documentation on the $20 billion restructuring of most
public sector debt maturing between August 23, 1982 and
December 31, 1984.
An arrangement to repay $600 million in private sector
interest arrears began operation on February 10 with an
initial $60 million payment. A second payment of $36
million was made in April. Arrangements for repayment of
principal on private sector debt have been announced.
A package of $2 billion in export credits/guarantees from
foreign official agencies has been agreed to and is being
assembled. (The U.S. has committed half -- $700 million CCC
and $300 million Eximbank guarantees.)
00
The peso was floated three times in 1982; in February,
August and December. A realistic rate is crucial to
reviving non-oil exports and stimulating tourism.
-- A dual market exists with a controlled rate of P110: $1
and a "free" market rate of about P148:$1, as of mid-
April. The controlled rate is being depreciated by
13 centavos a day. The Bank of Mexico sets the "free"
rate daily. It has moved very little since authorized
on December 20 at P149:$1.
- 3 -
-- The peso has lost 75% of its value since the mid-
February devaluation when 27 pesos equaled a
dollar.
Mexico's current account deficit declined from almost $13
billion in 1981 to $3.0 billion. The decline was caused
by the large depreciation of the peso, the lack of external
credit and the severe shortage of foreign exchange. Oil
export receipts increased by only $1 billion because of
the weakness in the oil market. Imports declined by about
40% because of the depreciation and lack of foreign exchange.
The current account deficit is expected to decline
further to around $1.4 billion in 1983.
External debt totalled $79 billion at end-December 1982.
Total external debt increased by $24 billion (almost
50%) in 1981 to $75 billion at end-1981.
Public sector debt amounted to 70% of the total-- $57
billion - -- of which $48 billion was medium and long-
term and $9 billion short-term.
BIS bank exposure totalled $64 billion as of end-June
1982, $25 billion of which is U.S. bank exposure.
A three-year $3.9 billion IMF program was approved on
December 23, 1982. The program requires a significant
reduction in the public sector deficit to 8.5% of GDP in
1983, a sharp reduction in the current account deficit, a
limit on net foreign borrowing, a limit on Bank of Mexico
credit to the public sector, increases in interest rates,
a rebuilding of reserves and a realistic exchange rate
regime.
A sharp decline in world (and Mexican) oil prices
could seriously undercut the IMF program, both the
current account and the budget deficit targets.
Every $1 drop in the price of oil will cost Mexico
$550 million. There will be some offsetting benefits
such as lower interest costs and higher nonoil exports
and tourism receipts.
Treasury/IDN
May 2, 1983
SUMMARY STATISTICS
COUNTRY: MEXICO
DATE: May 2, 1983
1980
1981
1982p
1983e
1. Balance of Payments ($Mil)
a. Exports
+16888
+20927
+22224
+22100
b. Imports
-18551
-24037
-14517
-15200
C. Trade Balance
-1664
-3110
+7707
+6900
d. Current Account
-7536
-12544
-2688
-1400
e. Current Account/GDP (%)
4.0
5.4
1.5
0.8
f. Exchange Rate Change
0.6
6.8
121.0
n.a.
?. Inflation
a. Consumer price increase
26.4
27.9
57.5
75.0
(annual average) (%)
b. Change in money + quasi money (%)
33.1
32.8
59.2
60.0
3. Public Sector Budget
a. Expenditures/GDP (%)
35.3
42.7
44.4
n.a.
b. Deficit/GDP (%)
7.0
14.8
16.5
8.5
4. GDP
a. Current Total ($Bil)
186.3
227.0
180
185
b. Per capita ($)
2,591
3,193
2,424
2,500
C.
Gross Domestic Investment/GDP($)
28.1
28.6
23.6
22.7
d. Real GDP Growth (%)
8.3
8.1
-0.2
-2.0
5. Unemployment (%) 1/
4.0
4.0
8.0
n.a.
6. Official U.S. Aid, Commitments FY ($Mil)
a. Total (Primarily Eximbank credits) 187.7
654.0
n.a.
n.a.
7. Multilateral Aid Commitments FY ($Mil)
a. Total
584
1360
n.a.
n.a.
8. IMF Program: Yes X
No
Amount $3.9 bil Approved 12/23/82
9. External Debt ($Bil)
a. Total (disbursed only) 79.2 as of December 31, 1982.
b. To U.S. (disbursed only) 24.9 as of June 30, 1982.
C.
Total debt service
18
in 1982.
d. Debt Service Ratio
60%
in 1982.
1/ These are official GOM figures, are probably much too low and
exclude underemployment which may be as high as 40%.
Mexican External Debt
Mexico's total external debt rose from $34 billion at the
end of 1978 to $75 billion at the end of 1981 and over $80
billion by August 1982. The external public debt (long-term)
rose from $29 billion at end-78 to $52 billion at end-81 and $56
billion estimated at end-82.
The debt to banks reporting to the BIS rose by over $40
billion from end-78 to $64 billioin at end-82, the largest debt
of any developing country to commercial banks. Brazil's total
external debt is larger, but its exposure to BIS banks is smaller
than Mexico's -- $55 billion at end-82. U.S. banks accounted
for $14 billion of the increase, and at year end their outstanding
claims were almost $25 billion.
Exposure of U.S. banks in Mexico has reached very high
levels of concentration. An analysis of June 1982 data,
including commitments, shows exposure at 38.1 percent of capital
for all reporters and 50.2 percent for the largest nine U.S.
money center banks. As these figures are averages, the exposure
level is considerably higher for some banks.
U.S. bankers, especially small regional banks, have taken
an increasingly negative view of Mexico, at least in the short-term.
Many banks are very close to their self-imposed lending ceilings
and do not want to raise them.
Cost of borrowing for Mexico has increased substantially,
especially when front-end restructuring and commitment fees
are included.
The terms of the restructuring have been set at 1 7/8% over
LIBOR and 1 3/4% over prime with an 8 year repayment period
(includes 4 years grace).
In addition, there is a front end fee of 1% of the
aggregate amount of debt subject to restructuring.
The restructuring fee is payable in 4 equal installments.
The terms of the $5 billion new commercial bank loan have been
set at 2 1/4% over LIBOR or 2 1/8% over prime with a 6 year
repayment period (includes 3 year grace).
There is a front end fee of 1/2% on the amount of the new
money -- $5 billion -- payable quarterly, during 1983.
Treasury/IDN
March 22, 1983
Mex:II
MEXICO - EXTERNAL DEBT
(Billions of Dollars, End of Year)
1978
1979
1980
1981
1982
TOTAL DEBT
33.9
40.2
50.7
74.9
79.2
Long-Term
29.3
33.9
39.6
52.4
56.3
Public
25.5
28.3
32.3
42.2
48.2
Official Creditors
3.8
3.8
4.5
6.3
8.0e
Private Creditors
21.7
24.5
27.8
35.9
40.2e
Private
3.8
5.6
7.2
10.2
8.1
Short-Term
4.6
6.3
11.1
22.5
22.9
EXTERNAL ASSETS
3.6
4.1
5.4
7.9
n.a.
Internatl Reserves
1.8
2.1
3.0
5.0
1.7e
Commercial Banks e
1.8
2.0
2.4
2.9
n.a.
NET DEBT
1/
30.3
36.1
45.3
67.0
n.a.
DEBT SERVICE
7.6
12.0
11.1
15.3
18.4
Principal
4.9
7.8
4.8
5.8
7.0
Interest
2.7
4.2
6.3
9.5
11.8
DEBT SERVICE RATIO (%)
66
75
45
51
60
CLAIMS OF FOREIGN BANKS
BIS Area 2/
23.3
30.9
42.5
57.1
64.4 4/
U.S. Banks 3/
10.7
11.5
15.7
21.5
24.9 1/
1/
Gross debt minus external assets (excluding gold) of Bank
of Mexico and the commercial banks.
Quarterly Series. Claims of banks excluded from quarterly report
may be another $2-4 billion.
3/
Country Exposure Lending Survey.
4/ June 30, 1982
Treasury/IDN
21 March 1983
MexII
MEXICAN MERCHANDISE TRADE
($ million)
Imports from:
Exports to:
Balance with:
US
US
All
US*
Share
All
US*
Share
All
US
1970
2236
1568
70.1
1348
839
62.2
-888
-729
1971
2158
1479
68.5
1409
911
64.7
-749
-568
1972
2610
1775
68.0
1717
1288
75.0
-893
-487
1973
3656
2277
62.3
2141
1318
61.6
-1515
-959
1974
5791
3779
65.3
2999
1703
56.8
-2792
-2076
1975
6278
4113
65.5
3007
1668
55.5
-3271
-2445
1976
5771
3774
65.4
3475
2111
60.7
-2296
-1663
1977
5625
3493
62.1
4604
2738
59.5
-1021
-755
1978
7992
4564
57.1
6246
4057
65.0
-1746
-507
1979
12132
7563
62.3
9302
6252
67.2
-2830
-1311
1980
18551
12814
69.1
16241
9688
59.7
-2310 -3126
1981
23166
19568
84.5
19837
12739
64.2
-3329
-6829
1982
14900
11104
74.5
20900
13281
63.5
6000
2177
*
Excludes 806,807 trade (offshore assembly operations).
Source:
"All" from IFS Yearbook and IDN estimates.
"US" from IMF Direction of Trade and IDN estimates.
Treasury/IDN
21 March 1983
SR
U.S. Department of Justice
Office of the Associate Attorney General
May 3, 1983
MEMORANDUM FOR:
Craig Fuller
Assistant to the President
for Cabinet Affairs
FROM:
Robert A. McConnell
Assistant Attorney General
Office Legislative Affairs
Phillip D. Brady
Deputy Associate Attorney General
SUBJECT:
Status Report on Immigration Reform for
the President's May 5, 1983 Trip to
San Antonio
This memorandum sets forth the current status of immi-
gration reform legislation in the 98th Congress.
Historical Overview
Following receipt of the Final Report of the Select
Commission on Immigration and Refugee Policy in March of 1981,
the President established a Cabinet Task Force, chaired by the
Attorney General, to study the Commission's recommendations
for comprehensive immigration reform. Based on that review
the Administration submitted a legislative package of immi-
gration reform proposals to the Congress in October of 1981
which embodied the most important recommendations of the
Select Commission.
The principal provisions of the Administration bill were
(1) penalties on employers who knowingly hire illegal aliens,
(2) legal status for illegal aliens who were in the U.S.
before January 1, 1980, (3) an expanded temporary foreign
worker program where domestic workers are unavailable, (4)
reform of our procedures to return persons who enter the U.S.
illegally, (5) expanded legal authorities to deal with mass
arrivals of undocumented aliens, and (6) increased legal
immigrant admissions for Canada and Mexico.
After extensive hearings on the Administration bill,
Senator Simpson and Congressman Mazzoli, the Chairmen of the
Senate and House Immigration Subcommittees, respectively, in
March of 1982 introduced their own immigration reform
- 2 -
legislation which incorporated most of the Administration's
proposals. The most significant exception to that incorpo-
ration was the deletion of the Administration's mass immi-
gration emergency plan. At the Cabinet Council meeting on
April 16, 1982, it was decided that the Simpson-Mazzoli bill
would become the Administration's vehicle for immigration
reform.
Thereafter, on August 17, 1982 the U.S. Senate passed a
substantially unchanged Simpson-Mazzoli bill on an over-
whelming, bipartisan vote of 80-19. The following month the
House Committee on the Judiciary reported its amended version
of the legislation to the House floor where it became stalled
during the post-election "lame duck" session.
Current Status
On February 17, 1983 Senator Simpson introduced the
Immigration Reform and Control Act of 1983, S. 529, an identi-
cal bill to the legislation which passed the Senate in the
97th Congress. On the same date Congressman Mazzoli in-
troduced H.R. 1510, identical in all major respects to the
reform legislation reported by the House Committee on the
Judiciary.
Expedited hearing schedules were established by both the
Senate and House Immigration Subcommittees. The Senate
hearings commenced on February 24th and lasted four days with
Administration witnesses testifying in support of the legis-
lation. On the House side three weeks of hearings began on
March 1 including supportive statements, from Administration
witnesses.
During the week of April 4, 1983 both the Senate and
House Immigration Subcommittees completed mark-up on their
respective bills. The Senate bill was reported to full
Committee on a voice vote and House Subcommittee passage was
accomplished on a 7-1 vote.
Most recently, on April 19th, the Senate Committee on the
Judiciary completed its consideration of S. 529 and reported
it favorably to the full Senate on a 13-4 vote. Floor action
began on April 28 and passage is anticipated on May 10 when
the Senate resumes its consideration. The House Judiciary
Committee mark-up began on May 3 and will likely be completed
on May 5. The schedule for House floor action is unknown.
Major Provisions
In general, the major provisions of the pending immi-
gration reform bills seek to strengthen the law enforcement
powers of the INS by imposing sanctions on those who knowingly
- 3 -
hire illegal aliens, (2) reform and streamline our procedures
to return those who come or remain here illegally, (3) deal
realistically with illegal aliens who are here now by granting
those who are contributing, self-sufficient members of their
communities a legal status and (4) establish a statutory H-2
temporary worker program for agriculture in recognition of the
need for foreign labor when domestic workers are unavailable.
1. Employer Sanctions
At the root of illegal immigration is the ready access of
illegal entrants and visa abusers to jobs that are very
attractive when compared to employment opportunities in their
homelands. Therefore, the cornerstone of immigration control
1S = provision making it illegal to knowingly hire aliens who
lack authorization to work in the U.S. Direct enforcement is
not an option given the reality of our extensive borders and
rather we must remove the magnet or incentive for illegal
migration -- attractive employment opportunities in the U.S.
Those who have studied this issue, including the Select
Commission on Immigration and Refugee Policy and more recently
the Attorney General's Task Force, are united on this point.
2. Adjudication and Asylum Reform
It is universally recognized that our adjudication
procedures have broken down under the burden of overwhelming
numbers. There are presently more than 140,000 asylum appli-
cations pending. Legal challenges to INS proceedings have
brought those proceedings virtually to a standstill. Multiple
opportunities for judicial and administrative review need-
lessly protract the process. The immigration reform legis-
lation proposes a more streamlined adjudication and asylum
system that would provide for finality in decision-making
while preserving the right to a fair and impartial hearing.
3. Legalization
The basic premise behind legalization is that we must
deal realistically with the fact that there are an estimated
3.5 to 6 million illegal aliens now living in the U.S. Wide-
spread deportations are not practical or desirable and permit-
ting the status quo to continue would have the effect of
sanctioning a shadow population beyond the protections and
sanctions of law. One criticism of legalization is that it
amounts to a reward for lawbreakers or "gate-crashers" but in
fact it is a practical decision that is consistent with
effective law enforcement. The failure to include a
legalization program would aggravate enforcement of employer
sanctions. It would leave in place those long term illegal
- 4 -
aliens who would likely be successful in resisting removal by
obtaining administrative and judicial relief. This would
divert important resources of the INS at precisely the time
its enforcement priority should be effective implementation of
employer sanctions.
Finally, it is notable that legalization does not amount
to amnesty as the purpose is not to give legal status to all
illegal aliens but only those who have demonstrated a commit-
ment to this country by long term continuous residence as
self-sufficient, contributing members of their communities.
Under the Administration preferred Senate version of the
legislation only eligible aliens (those not likely to become
public charges and without criminal records) who can
demonstrate that they have continuously resided in the U.S. in
an illegal status since before 1/1/80 are entitled to apply
for legalization.
4. H-2 Agriculture Program
Where there are not American workers to fill needed jobs
legislation should provide a legal avenue to admit foreign
workers. It should also provide safeguards to ensure that
American workers are not adversely affected by foreign labor.
The pending legislation addresses this need by establishing
statutory authorization for a distinct temporary worker
program for agriculture. Essentially it establishes
streamlined procedures for obtaining foreign workers upon a
showing that ready, willing and able domestic workers cannot
be found. This program could be particularly important during
the transition from a dependence on illegal alien labor to
reliance on domestic labor.
Prospects
The introduction of bills already considered by both
Houses and the early mark-up schedules have brightened con-
siderably the prospects for final enactment of a com-
prehensive immigration reform bill. Likewise nationwide
editorial support and public opinion as evidenced in opinion
polls will encourage Congressional action. Nevertheless, it
is generally agreed that enactment will need to take place
during the first session of the 98th Congress as it is diffi-
cult to obtain passage of omnibus legislation during an
election year.
ENTERPRISE ZONES
The Senate Finance Committee held a hearing April 22, 1983 on
the Administration's enterprise zone legislation, S. 863.
HUD Secretary Pierce was the lead-off witness for the
Administration. The hearing was extremely positive for the
most part. Both attending Senators and most witnesses
commented favorably on the legislation. Only the AFL-CIO
opposed S. 863 in testimony before the Committee.
Senator Dole expressed an interest in marking-up the legislation
at an early date. The Senate Committee faces the problem
of not yet having a House-passed revenue bill to which to
add the enterprise zone bill.
Senator John Tower, Chairman of the Senate Banking Subcommittee
on Housing and Urban Affairs is one of 38 bipartisan
cosponsors. Senator Lloyd Bentsen, a Finance Committee
member, has not cosponsored.
o
In the House, H.R. 1955 currently has 139 cosponsors ---
including three members of the Ways and Means Committee.
The legislative outlook still remains uncertain, however,
due to Chairman Rostenkowski's publicly announced opposi-
tion to the bill.
(Provided by the Office of Legislative Affairs)
(Provided by DOC)
FOREIGN-TRADE ZONES
GENERAL INFORMATION
What are foreign-trade zones?
Foreign-trade zones are duty-free areas at U.S. ports of
entry which provide special Customs procedures and trade
services for firms involved in international trade related
operations. They are operated as a public service and are
supervised by U.S. Customs, and function as an integral part
of state and local economic development efforts. (Foreign-
Trade Zones Act of 1934)
What are "subzones"?
When a manufacturing firm needs zone procedures, but cannot
be accommodated in the public zone serving the area, the
grantee of the public zone can apply to the FTZ Board on
behalf of the manufacturer requesting zone status at the
company's own plant. Before the Board will approve these
cases it must find (1) that the existing facility cannot
accommodate the proposed operation, and (2) that zone pro-
cedures will result in a public benefit such as increased
or retained employment.
How do zone users benefit from their zone operations?
The special Customs procedures in zones help them reduce
duty and federal tax payments on imports and avoid them
altogether on exports and reexports. Quota charges are also
avoided on exports or deferred on imports. The ultimate
objective is to assist firms operating U.S. facilities in
competing in the world market, thus creating and sustaining
domestic employment.
What public benefits do zones provide?
- zones provide flexible cost-reducing Customs pro-
cedures for firms engaged in international trade
related operations
- zones help facilitate and expedite international trade
- zones help encourage exports - about half of all goods
leaving general-purpose foreign-trade zones were exported
- zones help attract offshore assembly and processing
operations to the U.S. and encourage domestic operations
to remain in the U.S.
- zones assist communities in their economic development
efforts related to international trade
- zones help create employment opportunities in inter-
national trade related operations, with zones currently
providing an estimated 16,000 jobs throughout the U.S.
-2-
Where are zones located?
There are presently zone projects in 78 port of entry
communities throughout the country. The projects are
usually an integral part of State and local economic
development programs.
What types of companies use zones?
Last year some 1500 firms used zones. They ranged from
domestic to foreign firms, from small firms to large
multinationals. Their activities ranged from storage and
manipulation (repacking, testing, etc.) to manufacture and
assembly. What zone users have in common is involvement in
international trade and concern for "Customs costs", i.e.
tariffs or quotas. Some firms use zones only occasionally
and for a small part of their operations, other have a major
part of their operations in zones.
HOW much area does a typical zone occupy?
Zones vary in size depending on the needs of the particular
port community. Typically, a zone includes a multi-user
facility of 50-100,000 square feet for public warehousing
and floor-space rental, with industrial park space that
might cover 50 acres or more. Expansions and other changes
are made with FTZ Board approval as project needs and demand
zone services change.
Growth of Zones
- The number of U.S. port communities with zones has
grown from 12 in 1970 to 78 today.
- Value of merchandise handled by zones increased from
$213 million in 1971 to $5.9 billion in 1981, with
an estimated $6.5 billion in 1982.
- Direct jobs in zones have grown from 795 in 1971 to
an estimated 14,000 in 1981, with an estimated 16,000
in 1982.
Zones and New Legislation
Zones can play an important role in our international trade
development and will complement the recently enacted Export
Trading Company Act (signed by the President in October
1982) and the proposed Enterprise Zones legislation.
-3-
Zones under the Reagan Administration?
Since February 1981, 17 new zones have been approved for:
(by order of approval) Wilmington and Morehead City, North
Carolina; El Paso, Texas; Windsor Locks, Connecticut; Detroit,
Michigan; Indianapolis, Indiana; Baltimore/Washington Inter-
national Airport and Baltimore, Maryland; Phoenix, Arizona;
Bridgeport, Connecticut; Memphis and Nashville, Tennessee;
Tampa, Florida; San Antonio, Texas; Portsmouth, New Hampshire;
Mobile and Huntsville, Alabama. Among the approved special-
purpose subzones are AMC, Chrysler, Ford, and, Nissan and
Honda assembly plants, a Sanyo TV plant, and a Nashua Corporation
office equipment distribution facility.
- Value of merchandise handled by zones has grown
by about 30% in the past two years ('80-'82) from
$5.0 to $6.5 billion.
- During this period employment in zones has grown
by some 60% from about 10,000 to an estimated 16,000.
There will be a $6 million trade impact over the next five years and 250 more
jobs.
SAN ANTONIO
FOREIGN-TRADE ZONE
FTZ No. 80
- Sponsor: City of San Antonio
- Approved: September 16, 1982; Grant signed by Malcolm
Baldrige. Presented to Governor Clements during
a September 16, 1982 ceremony in San Antonio.
- Description of Zone: The zone covers 556 acres on 3
parcels.
Site 1 is a 52-acre parcel on Coliseum Road at
I-35, with 287,000 sq. ft. of warehouse space.
Site 2 covers 4 acres at 315 Medina Street in
downtown San Antonio.
Site 3 covers 500 acres within the Southwest
Industrial Park on Quintana Road and I-35.
This site is for firms needing space to construct
their own facilities.
- Operator: Scobey Moving and Storage Company
- Status: Will activate at end of May 1983.
City is currently conducting seminars to
educate local businesses about zones.
- Need for Zone in San Antonio: The City regards the zone
as an important part of a broad attempt to diversify
its economic base, reducing an over-reliance on
government and tourism as sources of employment.
San Antonio is becoming increasingly involved in trade
with Mexico. City officials have engaged in a series
of talks with Mexican officials aimed at achieving
economic cooperation. The zone will help
the City to capitalize on its location and its growing
relationship with the Mexican economy.
- Exports: The south Texas region is a net exporter with an
export to import ratio of 3 to 1. Exports have more
than doubled from 1978 to 1980 reaching $8.3 billion.
The zone will help to further develop export activity.
- Texas FTZ's: San Antonio is the 6th Texas community to
establish a zone project, joining McAllen (FTZ 12),
Galveston (FTZ 36), Dallas (FTZ 39), Brownsville (FTZ 62),
and El Paso (FTZ 68). Several border communities
(FTZ 68). Several border communities are also planning
to apply for zones: Laredo, Eagle Pass, Rio Grande
City, and Del Rio.
TURNBULL to BOB
The San Antonio SBA District Office Minority Small Business and Capital Owner-
ship Development currently administers a total portfolio of fifty-three (53)
approved 8(a) firms, whose aggregate contract support level projected for FY
83 is $31.5 million. The total level of contract support awarded through March
31, 1983 exceeds $14.0 million. Contracts awarded involve construction, manu-
facturing, professional services and non-professional services. The firms re-
ceiving this contract assistance employ approximately 3,000 persons.
The San Antonio District Office is actively seeking new applicants for program
entry. primarily in the areas of construction and manufacturing and expects to
increase the present portfolio 30% by the end of the fiscal year.
the San Antonio 8(a) portfolio presently consists of thirty-eight (38) Hispanic
Americans, thirteen (13) Blacks, and two (2) others.
(Provided by SEA)
San Antonio Light
Sunday, May 1, 1983
"The Week in Review"
Edited by Ed Slayman
Accused of "making insulting remarks that offended
Mexican-Americans, Veterans Administration chief Harry Walters
denied there were derogatory terms in his conversation at Audie L.
Murphy memorial hospital.
Walters was a recent visitor to the VA hospital where he met with
some government employees union leaders. They later said he
insulted them and from Washington Walters disputed their charges.
Tony Bonilla, national president of the League of United
Latin-American Citizens, took the employees side calling for
Walters' release from the job he has held only four months. Up to
now, Walters has enjoyed good relations with Hispanic leaders.
Spokesmen for other Mexican-Americar organizations also lined up
beside Bonilla and the complaining workers.
Walters, however, had at least one supporter, VA hospital
administratror Jose Coronado said he was shocked to read a letter
summarizing the complaint. "I know the credibility of the union
officials after years of dealing with them and I would tend to
believe Walters," Coronado said.
By DAN FREEDMAN
Staff Writer
WHAT WAS SMD:
Officials of the union repre-
senting employees at Audie L.
Murphy Memorial Hospital have
The union official:
accused Veterans Administration
chief Harry Walters of uttering an
management is
anti-Mexican-American slur dur-
cooking your fajita
ing a visit to San Antonio last
outside next to the
week.
Walters' comment allegedly
trash
came during an eight-minute
compactor.
meeting with leaders of Local
3511 of the American Federation
Walters' alleged
of Government Employees. The
reply: "What do you
meeting took place shortly before
expect, it's C
a special Mexican fajita lunch.
During the session. union offi-
Mexican lunch."
cials aired grievances against
hospital management over a vari-
ety of issues, including cleanli-
ness. They accused management
of quick-cleaning the premises for
Walters' benefit. When Walters
shrugged, union vice president
William Fenstermacher told him:
"Then you won't be surprised
when I tell you that management
is cooking your fajita lunch out-
side next to the trash compactor,
where all the flies are."
According to Fenstermacher
and union president Benito Garcia,
Walters replied:
"What do you expect? It's a
Mexican lunch."
In a telephone interview from
UPI photo
his home in Washington D.C.,
HARRY WALTERS
Please turn to WALTERS/24A "It's an obvious lie"
24A /Sunday, April 24, 1983/THE SAN ANTONIO LIGHT
Walters
"It's an obvious lie.
WALTERS/from 1A
I would never in my
Walters heatedly denied making
any anti-Hispanic statement.
wildest dreams say
"It's an obvious lie," he said.
anything to damage
"I would never in my wildest
dreams say anything to damage
the Hispanic
the Hispanic community. It's not
in my blood. I have far too many
community. It's not
Hispanic friends."
He said his only response to
in my blood. I have
Fenstermacher's statement was to
urge union leaders to "come to
far too many
grips with your problems." He
Hispanic friends."
also reminded them he was over-
due for the Mexican lunch.
Walters, who was appointed
a statement by Walters that there
by President Reagan as VA chief
are as many "f- . -ups in manage-
four months ago, was in San
ment as their are in labor."
Antonio for the dedication of a
new $1.8 million clinical research
Both Bidgood and Walters ac-
center inside the veterans hospi-
knowledged Walters said this.
tal.
They explained it was an attempt
He had agreed to meet Garcia,
to get union leaders to admit
Fenstermacher and chief shop
there were problems on both
steward Jerry Ibarra in the office
sides.
of hosptial administrator Jose
Coronado last Wednesday.
"The point was labor and man-
Col. Fred Bidgood, an Army
agement have to work together
officer who serves as Walters' as-
toward common goals," Bidgood
sistant, described the meeting as a
said.
last minute "courtesy call."
Union officials had written a
The union leaders chose not to
letter to Coronado, requesting a
tell Walters of their objections to
private meeting with Walters.
his statements. Rather, Garcia
Coronado at first did nothing to
summarized them in a letter to
arrange the meeting. but ended up
Glen Peterson. president of the
mentioning it when Walters ar-
AFGE's 10th District, based here
rived in San Antonio Tuesday
in San Antonio. Copies of the let-
night.
ter were distributed to a host of
Walters agreed to the meeting,
union officials, Hispanic organiza-
Coronado said, but a heavy sched-
tions and political leaders, includ-
ule of activities Wednesday per-
ing President Reagan, Senators
mitted only 10 minutes before
John Tower and Lloyd Benston,
lunch for the session.
U.S. Reps. Henry B. Gonzalez,
Abraham "Chick" Kazen and Tom
Loeffler.
The meeting took place in
Coronado's first floor office, with
the three union leaders, Walters
Coronado was also among
and Bidgood present.
those who received copies. He
"(Walters) didn't seem like he
said he was "shocked."
wanted to listen to us," said Fen-
"I know the credibility of the
stermacher, who works as a gar-
union officials after years of deal-
dener. "He told us he didn't have
ing with them. and I would tend
time to listen to our frustrations."
to believe Col. Bidgood (and 11'sh
Walters said he attempted to
ters)," Coronado said.
encourage union officials to estab-
"Between union officials and
lish common goals with manage-
management, there seems to be
ment.
difficulty in coming to a good
Fenstermacher said he then ex-
working relationship," he said.
plained management had made a
Fajitas were prepared on a
special effort to clean up areas of
garden-like patio more than 75
the hospital visited by Walters.
feet from the compactor, he said.
Under normal conditions, the
The compactor and patio are sepa-
hospital was not always so order-
rated by a brick wall, he added.
ly, Fenstermacher told Walters.
Fenstermacher and Garcia
Walters responded:
maintained the distance between
"I know that. I'd be surprised
barbecuing fajitas and the com-
if they didn't."
pactor was 10 to 25 feet.
Bidgood acknowledged Wal-
Although he serves as local
ters responded in this fashion, ex-
president. Garcia was dismissed
plaining it was an attempt to
from his position as a food service
break the tension that had been
worker in 1981 for insubordina-
building.
tion. A hearing before a labor
It was then that Fenstermach-
arbitrator resulted in a ruling in
er made his statement about faji-
favor of management last week,
tas being prepared near the trash
according to Coronado.
compactor.
Gardia said the decision would
Union officials also objected to be appealed.
Office of the
Washington DC 20420
Administrator
of Veterans Affairs
Veterans
Administration
APR 25 1983
Benito Garcia, President
American Federation of
Government Employees, Local 3511
P.O. Box 29272
San Antonio, Texas 78229
Dear Mr. Garcia:
This is in response to a copy of your letter of April 21, 1983, to
Mr. Glen Peterson, National Vice President of AFGE, which I have been
provided. I am taking this opportunity to respond since several state-
ments in your letter contain serious personal allegations against me.
Since assuming the position of Administrator of Veterans Affairs, I have
taken a number of steps to communicate directly with employees of this
Agency. Among these actions have been meetings with groups of Central
Office employees at all levels. Further, on February 15, 1983, I met with
the delegates of the National Veterans Administration Council, AFGE. One
of the requests of the Council was that when I visit VA field facilities
that I meet personally with local union officers as a courtesy and to
discuss areas of mutual concern. When visiting VA facilities, I have
attempted to arrange my schedule to accommodate that request. It was in
this context that I met with you and other AFGE officials on April 20, at
the VA Medical Center, San Antonio.
I categorically deny your allegation that I made a statement at that
meeting which could be interpreted as an ethnic slur against Mexican
Americans. On the contrary, my record will show that I have been an
active and enthusiastic supporter of equal opportunity in general, and of
Hispanics in particular. I also deny your statement alleging that I care
nothing about VA employees. It is most unfortunate that you have used the
occasion of an honest attempt on my part to improve communications between
VA management and employees, to attack me personally in this manner. As I
tried to explain at our meeting, I view it as essential that management
and labor in both the public and private sectors of this Country, begin to
work together as a team toward a common goal.
In my leadership of the Veterans Administration, I intend to continue to
strive for a true team effort between labor and management to improve our
services to this Nation's veterans. I hope that at some point you may
recognize the need for developing constructive relationships and begin to
work with VA management towards that end.
Sincerely,
Harry n. Waltey
HARRY N. WALTERS
Administrator
E
THE WHITE HOUSE
WASHINGTON
May 4, 1983
CINCO DE MAYO CELEBRATION
DATE:
May 5, 1983
LOCATION:
Plaza Nueva - San Antonio, Texas
TIME:
2:15 PM (45 Minutes)
FROM:
Craig L. Fuller as
I.
PURPOSE
To participate in the Cinco de Mayo Celebration, the
Mexican National Holiday recognizing the anniversary
of the "Battle of Puebla."
II.
BACKGROUND
One of the great days in Mexican history is known as the
Cinco de Mayo, or the Fifth of May. It is the anniversary
of the 1862 Battle of Puebla, in which Mexican forces
against overwhelming odds, defeated French invaders. It
is celebrated with festivities by Mexicans both at home
and in foreign countries. In the United States the
anniversary is observed especially in the southwestern
states of Texas, Arizona, and California.
San Antonio will hold a four-day celebration beginning on
May 5. 4,000 San Antonions from both the Hispanic and
Anglo community will be present at Plaza Nueva to demonstrate
their cooperation in making San Antonio an "All American
City." You recently presented that award to Mayor Henry Cisneros.
III.
PARTICIPANTS
Mayor and Mrs. Cisneros, City Officials, and citizens of
the community.
IV.
PRESS PLAN
Open Press
V.
SEQUENCE OF EVENT
- You will proceed to the platform and take your seat.
- There will be brief entertainment.
- The Mayor will introduce you and you will make remarks.
- You will proceed to several booths to sample the food.
F
THE WHITE HOUSE
WASHINGTON
May 4, 1983
SAN ANTONIO CITY COUNCIL RECEPTION
DATE: Thursday, May 5, 1983
TIME: 3:05 p.m. - 3:20 p.m.
LOCATION: McAllister's Old Place,
Upper Level Dining Room
FROM: William Henkel WH
I.
PURPOSE:
This is an opportunity for you to meet with
members of the San Antonio City Council, civic
leaders and active Republican party members.
II.
PARTICIPANTS:
See attachment for list of participants.
III.
PRESS PLAN:
Official Photographer Only.
IV.
SEQUENCE OF EVENTS:
3:05 p.m.
Escorted by Mayor and Mrs.
Cisneros, you arrive the Upper
Dining Room for a photo
opportunity with each of the
guests. At the conclusion of the
photo opportunity, you will make
brief, informal remarks.
3:20 p.m.
Depart.
GUESTS INVITED BY THE PRESIDENT
Clato Rodriguez - World War II recipient of the Congressional
Medal of Honor
Ed Prado - U.S. Attorney; Republican
Roy Barrera, Jr. - District Judge; Republican
Lamar Smith - Bexar County Commissioner; Former Republican
County Chairman
Jake Foray - Acting Treasurer of the Hispanic Republican Assembly
Ginger Martin - Member of the Texas Federation of Republican
Women
Henry Molinas - Vice President, Mexican Chamber of Commerce
Willie Velasquez - Director, Southwest Voter Registration
Organization
Manuel Flores - Active Republican
Eugene Tuscano - Member, Hispanic Republican Assembly
Jerome Gonzales - Chairman, Mayor's Commission on Employment
of the Handicapped; Republican
Robert Diaz - Member, Hispanic Republican Assembly
Oscar Salinas - Active Republican
Belinda Pena Dyer - Former Democrat, switched to Republican Party
Adam Reyes - Vice Chairman, Mexican American Republicans of Texas
Richard Ojeda - Legal Counsel, Hispanic Republican Assembly
Eli Cesar - Chairman, Hispanic Republican Assembly
Luis Hernandez - Treasurer, Hispanic Republican Assembly
George Strake - Chairman, Republican Party of Texas
Diana Denman - Vice Chairman, Republican Party of Texas
Herberto Martinez - Member, State Republican Executive Committee
Richard Eudaly - Dallas Regional Office, Department of Housing and
Urban Development
Ernie Angelo - National Republican Committeeman
GUESTS INVITED BY MAYOR TO LEADERSHIP MEETING
Henry Cisneros - Mayor of San Antonio (D)
Mary Alice Cisneros - wife
Maria Antonietta Berriozabal - Councilwoman, San Antonio (D)
Manuel Berriozabal - husband; Doctor at University of Texas at
San Antonio
Joe Webb - Councilman, San Antonio (D)
Frances Webb - wife
Helen Dutmer - Councilwoman, San Antonio (D)
Jack Dutmer - husband
Frank Wing - Councilman, San Antonio (D)
Louise Wing - wife
Bernardo Eureste - Councilman, San Antonio (D)
Maggie Eureste - wife
Bob Thompson - Councilman, San Antonio (D)
Rita Thompson - wife
Joe Alderete - Councilman, San Antonio (D)
Chris Alderete - wife
Ed Harrington - Councilman, San Antonio (R)
Gloria Harrington - wife
James Hasslocher - Councilman, San Antonio (R)
Sharon Hasslocher - wife
Van Archer - Councilman, San Antonio; Member, State Republican
Executive Committee
Edna Archer - wife
Lou Fox - City Manager
Jean Fox - wife
Yolanda Hernandez - wife of prominent local attorney, active
in community projects.
-2-
Juan Patlan - President of the Mexican American Unity
Council.
Frank Sepulueda - President of West Coast Produce
Raul Jimenz - President of Jimenz Food Products
Jane Macon - City Attorney, San Antonio
Narciso Cano - Director, San Antonio Department of Economic
Employment and Development
Rick Bela - President of Avante Corporation, involved in
economic development
Robert Zamora - Principal of elementary school
Gus Cardenas - Xerox Corporation
Victor Miramontes - Financial consultant for Rofan-Mosley
Ruben Munguia - Mayor's uncle; President of Munguia Printers
Jake Flores - President of Artes Metallicas, a local metal
art shop
Gene Rodriguez - Director, City Ventures, Inc., a division of
Control Data, Inc.
Ms. Clifton McNeil - Member, San Antonio Zoning Commission;
involved in San Antonio Conservation Society
Cipriano Guerra - President of U.A. Columbia Cable Vision;
active Republican
SAN ANTONIO CITY COUNCIL RECEPTION
AVAILABLE LATER