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Ronald Reagan Presidential Library Digital Library Collections This is a PDF of a folder from our textual collections. Collection: Reagan, Ronald: 1980 Campaign Papers 1965-80 Folder Title: [Transcript - 1980 Presidential Forum, Midwest Region Republicans, 03/13/1980] (1 of 2) Box: 247 To see more digitized collections visit: https://www.reaganlibrary.gov/archives/digitized-textual-material To see all Ronald Reagan Presidential Library inventories visit: https://www.reaganlibrary.gov/archives/white-house-inventories Contact a reference archivist at: [email protected] Citation Guidelines: https://reaganlibrary.gov/archives/research- support/citation-guide National Archives Catalogue: https://catalog.archives.gov/ 1 1980 PRESIDENTIAL FORUM 2 MIDWEST REGION 3 REPUBLICANS 4 5 6 7 TRANSCRIPT OF PROCEEDINGS had at the 8 1980 Presidential Forum, Midwest Region, sponsored 9 by the League of Women Voters, held at The Continental 10 Plaza Hotel, Wellington Ballroom, Chicago, Illinois, 11 on the 13th day of March 1980, commencing at 12 8:00 o'clock p.m. 13 14 INVITED CANDIDATES: 15 John B. Anderson 16 George Bush 17 Philip Crane 18 Ronald Reagan 19 20 MODERATOR: 21 Howard K. Smith 22 23 24 2 1 MS. RUTH HINERFELD: Good evening. I'm Ruth 2 Hinerfeld, National President of the League of Women 3 Voters. 4 Tonight here in Chicago where the League 5 was founded 60 years ago, we're continuing our 6 tradition of providing the public with nonpartisan 7 information about candidates and about issues by 8 presenting this, the second event, in our series 9 of 1980 presidential forums. Our moderator is the 10 distinguished news correspondent, Howard K. Smith. 11 MODERATOR SMITH: Thank you, Mrs. Hinerfeld. 12 Good evening. We're pleased to have with us tonight 13 four candidates for the nomination for the presidency 14 of the United States by the Republican Party. They 15 are Congressman Philip Crane of Illinois, former 16 Ambassador George Bush of Texas, former Governor 17 Ronald Reagan of California, and Congressman John 18 Anderson of Illinois. 19 Gentlemen, the format for this forum will 20 be rather different from those of past forums. The 21 campaign has now gone a fair ways, and there are 22 fewer candidates, and your views are known generally 23 on most issues to most of the public. So we hope to 24 turn this into a kind of an informal discussion, 3 1 possibly even a kind of a debate among you. 2 The forum will last for 90 minutes. It 3 will be divided into three segments, the first, 4 domestic affairs, second, foreign affairs, and the 5 third, the presidency and politics. Towards the end 6 of the forum we will take some questions from the 7 audience and then at the end you will have your time 8 to sum up in your closing statements. 9 Before we go down to issues of substance, 10 I would like to tell you that I've had an assurance 11 that former President Gerald Ford is watching us 12 tonight, and I wonder, are there any messages? 13 Mr. Crane? 14 PHILIP CRANE: I think Governor Reagan said 15 it, you know, break out the long johns and come join 16 the fray if he's so inclined. He missed all of the 17 cold weather, though, up there in New Hampshire and 18 Massachusetts. 19 MODERATOR SMITH: Mr. Bush? 20 GEORGE BUSH: No, I have nothing to add on that 21 particular question. I served under President Ford, 22 have great respect for him, and come on in, the 23 water's fine. It's going to be very competitive 24 right on down to Detroit. I think everybody knows 4 1 that, and there's another room up here, so come on, 2 let's go. 3 MODERATOR SMITH: Governor Reagan? 4 RONALD REAGAN: Well, I go along with all this 5 that's been said, but I think at least someone here 6 ought to point out if he's sitting in Palm Springs, 7 it's snowing here. 8 JOHN ANDERSON: All I was going to say for my- 9 self, Howard, that as that brooding omnipresence 10 watches us from Palm Springs, I would at least like 11 to send him greetings. And like the others, I have 12 known the former president for some 20 years, served 13 with him in the leadership of the U. S. House for a 14 number of years, I respect and admire him greatly. 15 But I, for one, would not want to see him disturb 16 his weli-deserved retirement. I think we have plenty 17 of candidates in the field. 18 MODERATOR SMITH: Gentlemen, certainly the 19 topic of most concern to the American public remains 20 that awful topic of inflation. Tomorrow President 21 Carter will announce his plans to fight inflation. 22 You can almost guess what's in it. 23 Very simply, there are going to be cuts 24 in Government expenditures, highway programs, jobs 5 1 programs and other things, going to be additional 2 Federal revenue from an import on oil, all of this 3 designed to fulfill the pledge which he has made 4 and which you have made to balance the Federal budget. 5 Now, I would like to ask you a question 6 about balancing the Federal budget. Every Republican 7 presidential candidate that I know of for the past-- 8 since World War II has made a pledge to balance the 9 budget. None has yet succeeded. 10 President Eisenhower, who took it as a 11 matter of faith almost, accumulated the biggest eight- 12 year deficit of any president we'd had up to that 13 time. In six years President Nixon, Republican, got 14 a bigger deficit. And President Ford presided over 15 the biggest one year deficit in American history, 16 60 billion dollar deficit in one year. 17 Now, why should voters believe that if 18 those men, who are strong men and who intended to do 19 what they said, fail, that you will succeed in your 20 pledge to balance the Federal budget? 21 Mr. Anderson? 22 JOHN ANDERSON: Mr. Smith, I think because the 23 motivation this time is quite different. No president 24 in many, many years, possibly since the Great Depression, 6 1 has faced the situation confronting the country today. 2 We have conservative financial advisors around the 3 country speaking in very apocalyptic terms about 4 a national emergency, even about the prospect of 5 national bankruptcy. 6 And we learned today that the prime rate 7 had advanced once more to the highest point I think 8 in a hundred years perhaps. And given that situation 9 and given the impact that I think it's having, not 10 simply on our domestic affairs, but the very obvious 11 effect that that has on the ability of this country 12 to discharge its burden of responsibility as a world 13 leader. 14 I think the next president of the United 15 States, whoever he be, and indeed the current 16 president, Mr. Carter, will have my support in any 17 reasonable effort that he makes to that end. 18 I proposed on Thursday of this past week, 19 I proposed about 11.3 billion dollars in cuts and 20 some revenue adjustments that would total up to about 21 22 billion dollars in all in an effort to bring down 22 what otherwise was projected as a 25 or 30 billion 23 dollar deficit for the coming fiscal year. 24 And I think the situation today is simply 7 1 so critical that this president and undoubtedly his 2 successor is going to have to call on the American 3 people, and yes, on the Congress, unwilling as they 4 may be, to make the kind of sacrifices that are 5 needed to bring down that deficit. 6 MODERATOR SMITH: Mr. Crane? 7 PHILIP CRANE: Well, the point I think needs 8 to be stressed is that the Republican Party has 9 historically been committed to balancedbudgets, and 10 our Democratic friends have told us for years that 11 we don't have to wcrry about debt. They came up with 12 all kinds of convenient cliches like, "We only owed 13 it to ourselves." They're the party that has never 14 worried about inflation until most recently because 15 they said that a little bit of inflation was not 16 like a little bit of pregnancy; it didn't have to go 17 to term. They are the same party that has controlled 18 the Congress in my 49 years for all but four years, 19 and the Congress alone has the responsibility for 20 appropriating and spending the public money. 21 And so whether you have a Republican 22 president or you don't have a Republican president, 23 until the American people realize that it is Demo- 24 cratic controlled Congresses by overwhelming margins, 8 1 in fact, in two to one, three to one margins, it's 2 democratic Congresses that run up the national debt 3 from under 16 billion dollars the year I was born, 4 1930, to almost 1 trillion dollars in terms of our 5 conventional national debt by the end of this next 6 fiscal year. 7 Frankly I question seriously whether 8 President Carter even has an understanding of how 9 to get at a balanced budget when he's got that Congress 10 to cope with. 11 The only other thing I'd add is, John, 12 with all due respect, you know, we've got a lot of 13 fiscal conservatives now suddenly who ran for 14 Congress in 1978. But I would argue that those 15 fiscal conservatives are not being properly monitored, 16 and unless the voters pay attention to how much money 17 those members of Congress are spending, and this 18 means looking to guides like the National Taxpayer's 19 Union which provides an ample one, and your record 20 doesn't come up all that well, John-- 21 JOHN ANDERSON: Well, Phil, if I can interject 22 at this point. I voted-- I don't know how you voted. 23 I voted in May of last year for the substitute budget 24 resolution that was submitted by the party in the 9 1 House that would have called for an 18 billion dollar 2 deficit instead of a 29 billion dollar deficit that 3 was proposed by the Democratic majority. 4 PHILIP CRANE: John, I've always voted for 5 balanced budgets. But my point is if you check the 6 National Taxpayer's Union's record, you'll find 7 that you voted for more than a 48 billion dollar 8 deficit in fiscal 1978. 9 JOHN ANDERSON: Well, I don't think the National 10 Taxpayer's Union, Phil, is the only record on which 11 we rely as to whether or not-- 12 PHILIP CRANE: It tells you how much you voted 13 for fiscal-- 14 GEORGE BUSH: Mr. Smith, I didn't pay for this 15 mike, but I'd like a little of the action, I'll tell 16 you. 17 MODERATOR SMITH: Mr. Bush? 18 GEORGE BUSH: The Congress, you mentioned 19 history. Let's face it. Democratic Congress, 44 20 out of the last 48 years. That's part of it. 21 We do need a balanced budget. But it's 22 not balance, per se, it's how you get there. I 23 disagree with John. Cutting back on social security 24 benefits. 10 1 JOHN ANDERSON: Now, wait a minute, George. 2 Wait a minute, wait a minute. 3 GEORGE BUSH: I'm sorry, I do not-- I will stay 4 with what I supported in '68. 5 I did not interrupt you. 6 JOHN ANDERSON: I did not propose to cut back 7 in social security benefits. That's not true. I 8 have to interrupt you when you do not tell the truth. 9 That is not true. 10 GEORGE BUSH: Let's be calm. Let's calm down. 11 Well, I saw what you said. 12 JOHN ANDERSON: That is not true. 13 GEORGE BUSH: I saw what you said. 14 JOHN ANDERSON: That is not true. 15 Mr. Moderator, if I may be recognized-- 16 MODERATOR SMITH: Mr. Smith, I promise you you 17 will have an opportunity to rebut following Mr. Bush 18 to correct that statement. 19 JOHN ANDERSON: If I may be recognized then 20 following Mr. Bush to correct that statement? 21 MODERATOR SMITH: All right. 22 GEORGE BUSH: I voted to increase social security 23 benefits to have them keep pace with inflation in '68. 24 I do not want to see this be brought into balance 11 1 by treating lightly those that need it the most. 2 Veterans' benefits, you're going to have 3 to cut somewhere, but I'd be very, very careful 4 about cutting there much to the opposition of what 5 some have been saying. I have put forward specific 6 cuts that I would adhere to. 7 I do not favor-- you talk about "the 8 difference," a 50 cent a gallon gasoline tax that 9 would wipe out every working person in order to try 10 to get this budget in balance. 11 JOHN ANDERSON: Do you favor a 50 percent 12 reduction in social security taxes? Will you mention 13 that as part of your program? 14 GEORGE BUSH: I would say it when we get in 15 balance. And when-- yes, I would. 16 PHILIP CRANE: Mr. Chairman, Mr. Moderator-- 17 MODERATOR SMITH: I think that Mr. Reagan has 18 not had a chance to say anything. Governor? 19 RONALD REAGAN: Thanks, Howard. I thought that 20 not having bought the mike myself I couldn't talk. 21 I have to go along with what Congressman 22 Crane said here and what George has said about the 23 number of years. This is the thing that I think 24 most people have forgotten. 12 1 It's very easy for the other party to 2 point to the man in the White House. And we've had 3 occasional Republican presidents and they-- it's easier 4 to get people upset at one man than it is at 500. 5 And so we forget that Congress is the one that's 6 been responsible for most of those programs. 7 But I also believe that when we mentioned 8 the debts under President Eisenhower, if you go back 9 about a half-- quarter of a century, he had one of 10 the two year periods in which there was a Republican 11 Congress. And if you look at that one two years, when 12 there was a Republican president and a Republican 13 Congress, there was virtually no deficit and no 14 inflation. 15 We tend to forget that the Democrats about 16 three or four decades ago started the idea that a 17 budget deficit and a little inflation was good for 18 us. That it was the alternative to recession and 19 unemployment. And there were many of us back there 20 for years ago out of the mashed potato circuit saying 21 that you couldn't control inflation; that you couldn't 22 keep it at one and a half or two or two and a half 23 percent; that one day, like radioactivity, it's 24 cumulative, it gets out of control. And it has gotten 13 1 out of control. 2 I don't believe in election year con- 3 versions. And, therefore, I don't have much faith in 4 the president. I know he's going to announce tomorrow 5 that he's going to-- he's asked all the department 6 heads to cut back on spending. But if they can cut 7 back in the spending in his proposed budget that 8 goes into effect next October, why was that spending 9 in the budget to begin with? Why did they put it in 10 there if it was so easily eliminated? And I think 11 that there are layers of fat in Government. 12 When we're talking about whether we have 13 to cut back on someone in need or not, all we have to 14 recognize is the combination of fraud and waste that 15 is so implicit in everything done in the Federal 16 Government, the administrative overhead. And that's 17 why I have proposed that you not balance the budget 18 by increasing taxes, as he's going to do. 19 And, John, I have to tell you that when 20 you talk about, well, we're going to raise one tax but 21 it's to cut another tax over here, the Government 22 always seems to come away with more money and the people 23 end up with less. 24 I, therefore, and I'll quit on this. I think there are a number of programs, and I've been 14 1 saying it all over the country, that the Federal 2 Government has usurped, which it is attempting to 3 run, and which in a planned and orderly manner 4 should be transferred back to the states and local 5 communities with the tax sources to pay for them, 6 and we wouldn't find that much waste. 7 MODERATOR SMITH: Ladies and gentlemen, may I 8 beg you not to applaud or otherwise react, because 9 that has an influence and we're trying to let these 10 gentlemen settle it among themselves. 11 Congressman Anderson, you wanted to say 12 something. 13 JOHN ANDERSON: Thank you, Mr. Smith. I 14 certainly want to welcome Mr. Bush and his campaign 15 to the State of Illinois. And I want this to be a 16 warm and friendly evening together. 17 But I have to tell him that a half truth 18 is as dangerous and deceptive as a lie. And two of 19 the comments that were made this evening I learned 20 just two hours before coming to this platform are 21 being aired in last minute commercials in the last 22 four or five days of this campaign charging that 23 John Anderson is for reducing social security benefits. 24 What John Anderson said on Thursday in 15 1 Naperville, Illinois, of last week was that in 2 computing the cost of living adjustment for social 3 security beneficiaries, one of the-- you use the 4 Consumer Price Index. One of the components of that 5 Consumer Price Index is home ownership cost. Monthly 6 that, therefore, reflects the advancing median price 7 of cost of a new home in this country which is about 8 $73,000 at the present time. And home interest rates 9 in Illinois just went up to sixteen and a quarter 10 percent. 11 What I said was that people who are over 12 65 and retired are not buying new homes, they are 13 not paying sixteen and a quarter percent interest 14 on home mortgages, and, therefore, there ought to be 15 a change in the calculation that is made in the 16 Consumer Price Index. 17 GEORGE BUSH: Do they get less money or more 18 money? 19 JOHN ANDERSON: Well, let me complete my 20 statement, Mr. Bush, and then I will be very glad 21 to reply. 22 That miscalculation is costing the Federal 23 Treasury, which you profess to be so concerned about, 24 5 to 7 billion dollars a year. And a very respected 16 1 member of the House Budget Committee, Paul Simon of 2 Illinois, whom I talked with just the other day, he 3 has said that that figure is absolutely sound and 4 that you could save about three and a half billion 5 dollars a year if you revised that Consumer Price 6 Index. 7 Now there are many economists that have 8 been saying that for a long time. It doesn't mean 9 that social security benefits are going to be reduced. 10 It means that come July 1 they will be increased, but 11 they might not be increased by 13.2 percent. They 12 might be increased by something like 10 percent. 13 That is not a reduction. 14 MODERATOR SMITH: Congressman, we have no time 15 limits except my own judgment. 16 JOHN ANDERSON: Could I just reply to the 50 17 cent briefly? 18 MODERATOR SMITH: Briefly. 19 JOHN ANDERSON: Because that again is a half 20 truth when you say that we are going to wipe out the 21 working people of this country by assessing them a 22 50 cent tax. 23 I'm going to give them under that program, 24 and Governor Reagan, you have a right to be skeptical, 17 1 I appreciate your concern in that regard. But this 2 is one legislative package and it was introduced in 3 one bill. And what it provides is that there would 4 be a 50 percent reduction in social security taxes. 5 That would be the largest tax cut in history, 46 6 billion dollars, and the purpose-- the purpose is 7 to bring down the consumption of imported oil, because 8 we believe that when that median wage-- 9 MODERATOR SMITH: I think you've made your 10 point, Congressman. I think Mr. Bush should have 11 an opportunity to talk. 12 RONALD REAGAN: You know, we may never get past 13 this first question. 14 MODERATOR SMITH: This happens to be the most 15 important question tonight. 16 GEORGE BUSH: The person who is already retired 17 is not paying the tax. He would get hurt by the 18 gasoline tax. This idea of taking it in, we're 19 going to raise a great more revenue and then pay it 20 out the other way doesn't work that way. And I am 21 against that 50 cent gasoline tax. I'm strongly 22 opposed to it, because it never works if we pay it 23 in one-- take it in one hand and pay it out. 24 I was on the Ways and Means Committee, 18 1 you've been in the Congress. We both know that it 2 doesn't work that way. And I am opposed to it, and 3 that's it period. That's the Anderson difference; 4 that's the Bush difference. 5 JOHN ANDERSON: I don't mind your opposition. 6 Just state the case correctly. 7 MODERATOR SMITH: Let's let Mr. Crane speak 8 now. 9 PHILIP CRANE: If I could address this question 10 of that 50 cent a gallon tax on gasoline, and my 11 understanding is that this is designed to try and 12 reduce social security taxes. What I think that 13 overlooks, John, is the fact that there are 10.2 14 million car owners age 65 and over. Now, those 15 people have qualified for those retirement benefits. 16 They paid into the social security program up to 65, 17 and if you're imposing that tax on them, what you're 18 asking those people to do is to, in effect, pay the 19 taxes for their own benefits. 20 JOHN ANDERSON: Well, I just would simply want 21 to repeat, and very quickly, we have accounted for 22 that by providing for a 4 percent increase. That 23 would enable the retired person to drive about a 24 hundred miles a week, 400 miles a month, and that 19 1 would come out of the revenues of the gasoline tax. 2 That would cost about 4 percent. 3 MODERATOR SMITH: All right, I think that's 4 clear now. 5 Governor Reagan? 6 RONALD REAGAN: Well, and I hope we get on to 7 the next carbon. I just have to say one thing. 8 We've been talking here about tax increases 9 of various kinds. I happen to believe there's a new 10 school of economics and it's a sound school. In 11 four times in this century we have done what I'm 12 going to suggest, and it has worked every time and 13 even the Government has gotten more revenue. 14 I think we have come to a point in this 15 country where it is Government that is the problem. 16 It's Government that is a drag on the economy, and the 17 time has come for us to have the courage to cut the 18 income tax rates across the board for everyone in 19 such a heavy manner that we increase incentive and, 20 as a result, increase productivity in this land and 21 get back to the thing that made this country great, 22 which is to be an industrial giant, able to out produce 23 anyone else. And we need the incentives to do it, and 24 I think the graduated tax coming up against inflation 20 1 is probably the thing that is making everyone in this 2 country poorer every year, not richer. 3 The standard of living in the United States 4 is going down four and a half percent a year. 5 MODERATOR SMITH: Gentlemen, if we cut taxes 6 the way you say and if we increase defense expenditures 7 and then balance the budget, something has to go. 8 And we have 26 million people in this richest country 9 in the world living below the poverty line. 10 Won't they be effected? Can we in all 11 conscience do that? 12 RONALD REAGAN: Howard, let me just, if I may 13 say something about this. The last president, and 14 I hate to have to admit he was a Democrat, the last 15 president who tried this across the board tax cut 16 was John F. Kennedy. His economic advisors, and some 17 of them are still advising the Democratic leaders, 18 his economic advisors told him that if he cut the 19 taxes across the board the Government would lose 20 89 billion dollars in revenue. The economists were 21 143 billion dollars wrong. He went ahead and cut the 22 taxes, the last time it's been done, and the 23 Government got 54 billion dollars more in revenue 24 at the lower rate than they'd been getting before, 21 1 and that makes the total of 143. 2 There's a funny thing about the dollars 3 out there in the people's hands that have a multiplier 4 effect, and it stimulates the economy far more than 5 Government spending. 6 This administration is still pledged-- and 7 maybe some of the gentlemen here, John, maybe you are, 8 or still believe in the idea that it is Government 9 spending and Government fine tuning that can cure 10 the problems and it is that that has caused the 11 problems. 12 MODERATOR SMITH: Congressman Anderson? 13 JOHN ANDERSON: No, I don't feel that way, 14 Governor. But very quickly, you see where I disagree 15 with you is that the revenue impact in the first year 16 of your proposal, which is the Roth-Kemp Proposal, 17 30 percent in three years. The revenue impact in 18 the first year, I believe, would be almost 20 billion 19 dollars. It would be about 36 or almost 50 billion 20 dollars in the second year, and 95 billion dollars 21 in the third year. What I'm worried about is you're 22 comparing the success of the Kennedy tax cut, which 23 was about 12 billion dollars in an economy that was 24 less than a quarter of the size of our economy today, 22 1 and at a time when the inflation rate was about 2 2 percent. And I just think that the conditions today 3 are so different. 4 I'm so worried about inflation that I 5 think in the long run, sure we want to cut taxes, but 6 the immediate impact, I think, would be to make that 7 inflation even more variable, because it would increase 8 the inbalance. 9 MODERATOR SMITH: Mr. Bush, would you-- Mr. 10 Bush wants to say something. 11 GEORGE BUSH: I'm interested, John. I thought 12 you were on that airplane espousing the Kemp-Roth 13 tax cut in 1978. 14 JOHN ANDERSON: In 1978-- 15 GEORGE BUSH: Let me finish, please. 16 What I favor is, and as a goal, I agree 17 with Ron. As a goal I believe that that theory would 18 work. We're in a tough time today. What I want to 19 see is a tax cut divided between increasing savings-- 20 say to a person trying to buy a home with interest 21 rates at their what, 15, 16 percent, put it into a 22 savings account, leave it there, but you begin to 23 form savings that immediately stimulates investment 24 in housing or to a business. 23 1 Go into the ghetto area. Take some job 2 training credits or rapid depreciation. Put your 3 plant there. Help people. And that 20 billion cut 4 of that nature is what I'm proposing. I think it will 5 stimulate investment. I think it won't risk the lag 6 effect that I believe would be on Kemp-Roth, and I 7 couldn't agree more. The thing I disagree with 8 John's recent plan is more and more taxes. We don't 9 want that. We need a 20 billion dollar tax cut, and 10 that's what I support. 11 MODERATOR SMITH: Gentlemen, I'm sorry that 12 we've run out of time just on this first question 13 about inflation and your differing views. 14 We have to talk about foreign affairs now, 15 and I would suggest to you as a first question, with 16 Russia taking over Afghanistan, with Pakistan too 17 intimidated even to accept arms from the United 18 States, Saudi Arabia keeping a distance from us, 19 we need friends in a Muslim country down in southern 20 Asia. And many people have suggested that the whole 21 Arab world would become friendly if we could secure 22 an agreement on Palestinian autonomy. 23 Now, what would you do as president to 24 bring about this change? 24 1 PHILIP CRANE: First of all I think with respect 2 to any resolution of the Middle East problem one should 3 respect the Israeli position. The Israeli position 4 is face-to-face negotiations between the parties 5 involved. Secondly, no prior conditions to sitting 6 down at the negotiating table. And thirdly, no 7 externally imposed solutions either by the United 8 States, the Soviet Union or any supra-national body 9 like the United Nations. 10 I think as far as the Palestinian problem 11 goes, it means observing the Israeli insistence on 12 no participation by the PLO. And I think rightly 13 so. The PLO does not speak for any identifiable 14 constituency. The PLO is engaged in acts of terrorism, 15 murders committed against women and children, and I 16 think the PLO to date still has not disavowed its 17 commitment to the extermination of the State of 18 Israel. 19 The Israelis have indicated that they 20 recognize that there are Palestinian problems within 21 Jordan and that Palestinians participating in any 22 Jordanian negotiating team would not meet the 23 resistence of the Israelis so long as they were not 24 PLO spokesmen. And I think further one must recognize 25 1 that the Palestinians by definition today are 2 Jordanian citizens. So, you know, even if Israel 3 pulled back behind the borders, the pre-'67 borders, 4 that there is still presumably a Palestinian problem 5 to be negotiated with King Hussein. And, therefore, 6 in my judgment the United States must maintain an 7 evenhanded and neutral posture encouraging both 8 sides to participate in negotiations but that in no 9 way, in my judgment, involves any recognition of 10 the PLO. 11 MODERATOR SMITH: Governor Reagan, by May the 12 20th they're supposed to settle this problem with 13 Egypt and Israel. They are not close to it now. 14 What would you suggest? 15 RONALD REAGAN: Well, I have to go along with 16 what Phil said there. The Israelis, I think, for many 17 years, the Palestinian problem has been imposed as 18 if it is-- the refugees are all from Israel and, 19 therefore, they're Israel's problem. 20 Palestine was never a country. It was 21 a territory, an area, and it was a British mandate. 22 And it was the British Government that, simply by 23 signing a paper, created the Kingdom of Jordan which 24 is 80 percent of what used to be Palestine. The 26 1 Israelis have less than 20 percent of what was 2 Palestine. The Palestinian refugee problem, it seems 3 to me then, is an 80 percent 20 percent problem of 4 Jordan and Israel. But I think they could also-- you 5 could extend it to the other Arab nations. 6 I go along with this, that I think that 7 there's been too much effort on the part of this 8 administration to mandate terms in the settlement 9 there. I think that we should stand by ready to help 10 in any way we can recognizing this also. 11 In Israel we have a moral obligation that 12 we assumed and we should never forget, the State of 13 Israel and to guarantee its existence. But it is not 14 a one way street in which we are simply being 15 generous. Israel is the only stable democratic 16 government left in the Middle East with a combat 17 trained and indeed combat experienced military as 18 a deterrent to further aggression on the part of the 19 Soviet Union. If they weren't there paying their 20 way to us in this alliance between the two of us, 21 we'd have to be there. 22 And I agree also that the PLO is one of 23 the contributing problems to all of this. No one 24 elected the PLO, and I don't believe that anyone 27 1 should be asked to negotiate looking down the barrel 2 of a terrorist gun. 3 MODERATOR SMITH: Mr. Bush, let me add this to 4 that same question before you speak. Three presidents, 5 two of them Republicans, have now regarded Israeli 6 settlements in occupied Arab territories to be illegal 7 and have opposed them. Is that a major obstacle to 8 a settlement? How do you feel about those settlements? 9 GEORGE BUSH: I don't think they should go 10 forward with more settlements, but I don't think 11 they should pull back off all settlements. A lot of 12 those settlements have very legitimate security of 13 provisions with them. 14 I support the Begin-Sadat agreement. I 15 think before there should be any discussion with PLO 16 they must revise the '68 Convention that equated 17 Zionism with illegality and Israel as the agent of 18 Zionism. This area, having wrestled with that 19 problem at the United Nations, did not lend itself 20 to a comprehensive settlement which would, in my 21 view, bring the Soviets back into the equation. I 22 think this administration was absolutely outrageous 23 what they did in terms of this U. N. resolution. It 24 undermined what confidence Israel had left, and it 28 1 made the Arabs and everybody else think that this 2 administration was absolutely ridiculous in the 3 process. 4 And so I would favor going forward as 5 best you can. You mentioned the time limit with the 6 Begin-Sadat agreement, recognizing you're not going 7 to impose a settlement, and that the strategic and 8 moral commitment to Israel must be kept. And there's 9 nothing in that that precludes improvement of 10 relations with some of these shiekdoms or with 11 Jordan. That's the folly of some of the arqument 12 that is has to be one way. 13 And lastly, do not trade off even 14 inferentially the security of an ally for hoped for 15 economic gain. Our problem is credibility in foreign 16 affairs, and we must not add further to our problem. 17 JOHN ANDERSON: Mr. Smith, it's nice that 18 we've finally found something on which we all seem 19 to agree. I don't think that there's much in what 20 has been said with which I would disagree, if anything. 21 I would make the further point that I. 22 think the mistake that the administration has made, 23 and it's already been alluded to, is that when they 24 do the kind of thing that occurred a week ago Saturday 29 1 in the United Nations, when they vote for a resolution 2 condemning Israel, and, of course, folding in the 3 Jerusalem question with the whole West Bank Gaza 4 District, that's a separable question. I've talked 5 many times about Mr. Henry Kissinger. He makes the 6 point and, I think, quite correctly, that that is 7 going to be the most difficult problem of all to 8 solve, and it certainly ought not to be just folded 9 in as that resolution did with the whole question 10 of the West Bank and the Gaza District. 11 The other point that I would make is that 12 when the administration undertakes in public to 13 condemn the Israelis rather than to use the channels 14 of quiet diplomacy to register any dissent that we 15 may have, and we may dissent. There isn't everything 16 that the Israeli Government does that we're going to 17 agree with. But I'm told in my talks with leaders 18 in that country that when we make a public declaration 19 such as that, that unites Israel in an absolutely 20 inflexible position. Then even the Labor Party, 21 which has disagreed with the settlement policy of 22 the Begin Government, finds itself locked in in a 23 position of national solidarity to stand against the 24 enemies of Israel and the world. 30 1 So I think the administration has got to 2 learn the bitter lesson that hopefully that they 3 now have absorbed that we do this by quiet, patient 4 diplomacy. And I think as far as the whole Middle 5 East settlement is concerned to establish arbitrary 6 deadlines, I don't believe that policy is going to 7 work. 8 MODERATOR SMITH: Let's get away from this 9 area of agreement as fast as we possibly can. 10 In Iran we've had new disappointment about 11 the hostages. 12 Mr. Reagan, in South Carolina you indicated 13 you thought that President Carter has handled the 14 Iranian situation badly. Senator Goldwater on 15 television the night after that, I think, disagreed 16 with you. He said he's thought Carter had done it 17 very well. You said that we should take, in South 18 Carolina, appropriate action. Does that possibly 19 mean force that might cost the lives of the hostages 20 or force Iran into the arms of the Russians? 21 RONALD RAAGAN: No, Howard, and none of us 22 here and none who have been candidates on our side, 23 we've all kind of observed a kind of a rule of not 24 making a suggestion as to what actually should be done 31 1 for fear we might endanger the hostages further or 2 that we might unwittingly touch upon something that 3 may be being negotiated. 4 I have felt free, however, after we're 5 going into the fifth month of their captivity and 6 we've been humiliated throughout the world by this 7 rag tag mob, that it is-- there's no objection to 8 criticizing what we think has been done. Now, every- 9 thing that's been done so far has been through the 10 diplomatic channels, the United Nations and all of 11 this. And they have, in turn, the other-- the captors 12 have been using the salami tactic on us. As soon as 13 we suggest that we would agree to something such as 14 this U. N. Commission if the hostages are released, 15 and then the understanding is given to us that, well, 16 if they set up that Commission, the hostages come 17 home and then the Commission will go forth with its 18 work. But, oh, no, that's changed and then another 19 demand. 20 As long as they can continue to get another 21 slice of that salami from us, as long as this 22 administration negotiates, and when refused on one 23 point, or they turn their backs on one point on the 24 other side, we're willing to negotiate the next 32 1 demand that they make, then it's to their advantage 2 to hang onto those hostages. 3 I believe, and what I said in South 4 Carolina was, that in the first 48 to 72 hours you 5 do all the things diplomatically, and I think they 6 would include everything the president has done so 7 far over all these months, all the diplomatic channels. 8 And if there is no way diplomatically to get release 9 of the hostages, then, and I will admit that only 10 a president has the knowledge of the options that are 11 open to him when you speak of action, so none of us 12 have the information that you would have in that 13 position. But then privately, not publically, 14 privately you communicate with the captors once you've 15 failed diplomatically and you tell them that as of 16 a date certain those hostages will be turned over to 17 a neutral country or an action will be taken that 18 they will find decidedly unpleasant. That does not 19 necessarily mean force of arms. But whatever you've 20 decided will be the most unpleasant for them, you 21 say to them that will happen as of that date. And 22 when you let it go on this long, this is a failure 23 of foreign policy and a failure of our Government 24 to carry out its responsibility to its own citizens. 33 1 MODERATOR SMITH: Mr. Bush, some people have the 2 impression that by waiting patiently we've gained 3 some allies inside Iran who are beginning to articulate 4 themselves like the new president, Bani-Sadr, and 5 the foreign minister. Do you believe that? 6 GEORGE BUSH: No, I don't. And I believe that 7 you hear some-- you see some division. But frankly 8 I'm getting tired of it. The American people have 9 had it with this thing. There are more people coming 10 in now, apparently there's a higher level of students 11 from Iran in this country than there were when this 12 all started. There's spare parts we're still shipping 13 to Iran, and I've supported the president. And I 14 do believe the president, in my experience in foreign 15 affairs, sometimes has much more information. 16 But he hasn't leveled with us. I felt 17 when that Commission went there that the fix was on. 18 The hostages are coming out. And yet we haven't 19 heard a word as to what happened. I'm inclined to 20 feel that the time has come to tighten up economically, 21 to shut down that embassy, and to really start looking 22 like we're serious about this. 23 We've tried conciliation for a long, long 24 time. I'm not sure I agree with you, Ron, on drawing 34 1 the line in the sand on the date certain. But there 2 are things the United States can do and should be 3 doing. And I think we have been awfully patient in 4 the country, and I believe we ought to start taking 5 some of these actions, including increasing strong 6 economic pressure on Iran. 7 MODERATOR SMITH: Mr. Crane? 8 PHILIP CRANE: First of all, the president, 9 Howard, has to assume total responsibility, it seems 10 to me, for those people being held hostage in the 11 first place, and that's a point that I think all of 12 us can agree upon and should be driven home forcefully. 13 He had better than six months warning, the details 14 spelled out to him as to exactly what was going to 15 happen over there as a result of admitting the Shah 16 into this country. And repeated warnings. So it 17 wasn't something that should have caught him by 18 surprise. 19 The first question then is why were those 20 people there, they never should have been there, and 21 the president is the one that must assume personal 22 and total responsibility for our people being held 23 hostage. 24 Having said that I have abstained from 35 1 second guessing him in a public way, but I would 2 simply remind everyone of a period in recent history 3 when we had a man in the White House who wasn't of 4 our party, had that sign on his desk that said, "The 5 buck stops here." And I'm talking about Harry Truman. 6 And when you think about things that might have been 7 done, one thing I think all of us would concede, 8 Democrats and Republicans alike, is Harry Truman 9 didn't have trouble making decisions. And forceful 10 decisions, and often times unpopular decisions. 11 Can you honestly imagine if Harry Truman 12 had been in the White House during this period that 13 we would be at this impasse today? So obviously 14 there are better ways. 15 MODERATOR SMITH: Mr. Anderson, every president 16 would like to begin his career as president writing 17 on a fresh page, but he's forced, as Woodrow Wilson 18 says, to write between the lines of what was there 19 before him written by the last president. So we 20 have to assume that the situation is where it is now, 21 what would you do about it? 22 JOHN ANDERSON: You're referring still to the 23 situation in Iran. Well, of course there will be 24 some developments conceivably starting tomorrow in 36 1 those elections for the parliament, and there will 2 unfold perhaps, whether or not Bani-Sadr who is 3 supposed to be a relative moderate, who is supposed 4 to be interested in the settlement of this problem, 5 can best the clerics, the so-called Islamic 6 Republican-- I'm a little bit embarrassed that that 7 happens to be the name of the party, but I guess it 8 is. The Islamic Republican Party to whom the 9 clerics belong, or to which the clerics belong, and 10 whether or not he can sort out of the chaos and all 11 of these competing power centers, you have the 12 militants who are holding the embassy, you have the 13 Ayatollah Beheshti (phonetic) and the revolutionary 14 tribunal, then you have Bani-Sadr. 15 And I feel pretty much as Mr. Crane said 16 a moment ago that this has been a test, I think, of 17 restraint, not only on the part of the president, 18 but of presidential candidates. And when you have 19 no really solid clear alternative it's very difficult 20 to be terribly critical, except that I have felt that 21 the timetable of the administration has been somewhat 22 leisurely. A whole month went by, for example, the 23 4th of November the hostages were seized, and it 24 wasn't until the 4th of December that that unanimous 37 1 resolution condemning the seizure was finally adopted 2 in the Security Council of the United Nations. And 3 I do believe that some more expedition could have 4 been practiced on the part of the administration. 5 But I do believe that we have to continue 6 to show some restraint. I don't know the military 7 option myself that would be available to guarantee 8 the safe rescue of those hostages. But it may be 9 that we can diplomatically isolate them as time goes 10 on. 11 MODERATOR SMITH: Let's get away from this 12 agreement. We're too close to agreement. 13 PHILIP CRANE: John-- well, could I just 14 inject just one thing here? 15 I think something, John, that everyone 16 has got to realize is that there is the possibility 17 that no one is going to come out of this alive anyway. 18 And there's where I think the man who is President 19 of the United States and Commander in Chief has to 20 be prepared to make, at some point, some very strong 21 decisions and be prepared to take the heat for it. 22 Because, you know, all of this anguish and this torment 23 and the, at least, psychological torture being 24 inflicted on those people, and for all we know, 38 1 physical torture, too. They haven't even let the 2 Red Cross come in and actually see each and every 3 one of those 50 hostages. 4 But that, to me, is an ingredient of 5 leadership, and I'm not going to spell out what the 6 particulars are. All I'm saying is that at some 7 point a President of the United States has to face 8 up to the same kind of hard decision that, say, 9 General Eisenhower made when he was planning the 10 invasion of Normandy. 11 Now, you know, it's not a pleasant thing. 12 Anyone who has been in combat will vouchsafe for the 13 fact it's not a pleasant decision to make. But I 14 think the president has demonstrated no policy, 15 vacillation, weakness, indecision, and it's been 16 compounded by his seeming capitulation to conditions 17 that we said were totally inacceptable. Even that 18 U. N. Commission, totally unacceptable. There's 19 no basis for any linkage whatsoever between the 20 Shah, the Shah's regime, our identification with the 21 Shah and their holding those people hostage. They 22 are outlaws by definition in the whole community of 23 nations. 24 RONALD REAGAN: Howard, could I just add one 39 1 thing here to what has been said? 2 Has anyone stopped to think that the 3 policies of this administration in this situation 4 have endangered Americans wherever they may be in 5 the world? There isn't an embassy any longer that 6 is safe when once upon a time an embassy could stand 7 there with a war going on around it and it was 8 sovereign territory of another nation and wouldn't 9 be touched. 10 But they are all endangered now as they 11 see this country unable to cope with this kind of a 12 problem. And I would add one thing to what Phil 13 has said about the president's responsibility. It 14 began even earlier than the capture. It began when 15 he pulled the rug out from under our ally of 30-some 16 odd years standing, Iran, the Iranian Government. 17 All he had to do was stand up and stand beside the 18 Shah's Government and there wouldn't have been a 19 successful revolution. That we betrayed an ally as 20 we betrayed Taiwan, as we betrayed others. 21 MODERATOR SMITH: I want to see if I can stir 22 up some more dissent. Mr. Anderson, you opposed 23 some plans to beef up defense, especially around the 24 Persian Gulf, saying, "There aren't many Americans 40 1 who want our young to die defending oil that we could 2 learn to live without." 3 Well, if the oil which we've not yet 4 learned to live without were cut off, it is our allies, 5 Japan and West Europe, who suffer most. 6 John Roach, the columnist, called your 7 statement, "vintage isolationism and America 8 firstism." What do you-- 9 JOHN ANDERSON: Not at all, not at all. Mr. 10 Roach is wrong. Because what I have criticized, 11 Mr. Smith, is the unilateralism of the administration's 12 approach to this problem. I feel that Mr. Carter was 13 so anxious to enhance his quagging aura of leadership 14 that what he did on the 23rd of January was to rush 15 into the House of Representatives and deliver a 16 State of the Union message in which he unilaterally 17 proclaimed the doctrine, the so-called Carter 18 Doctrine, in which he said we would defend by 19 military force, if necessary, this vital interest. 20 And then one week later he met with news editors 21 and admitted that, of course, we can't do this without 22 the cooperation of our friends and allies. 23 What he should have done, and where he 24 made his fundamental error, he should have been 41 1 patiently, carefully, quietly, diplomatically 2 stitching together the fabric of western unity, 3 telling the Japanese, you import 75 percent of your 4 oil from that region; telling the West Germans 5 and the French, you get more than 60 percent of 6 your oil from that region. Join us in designing 7 a set of collective security measures by which we 8 will assert the vital interests of the west. 9 I'm not an isolationist. I'm not a 10 neoisolationist. But I do not want to see the 11 United States simply become the protector of the 12 Persian Gulf when other nations with equally vital 13 interest in that area ought to be willing to 14 cooperate with us. And that's where I think Mr. 15 Carter has been wrong on this particular occasion. 16 And I also have to disagree with my 17 friend on my right who says that we made a fundamental 18 mistake when we didn't stand tall in the saddle and 19 defend the Shah of Iran as the protector of the 20 Persian Gulf. I think we made a fundamental error 21 back in 1970 when we submitted to his megalomania 22 and said that we were going to sell them 18 to 20 23 billion dollars worth of arms and make him the 24 protector, and look what happened. 42 1 We cannot base a solid foreign policy 2 of this Government on propping up the kind of 3 autocratic regimes that do not enjoy the popular 4 support of their people. We do. We are building 5 a foreign policy upon shifting sands. 6 PHILIP CRANE: Would you yield for a question 7 on that point? 8 JOHN ANDERSON: of course. 9 PHILIP CRANE: Would you have supported General 10 Zia? 11 JOHN ANDERSON: General Zia? 12 PHILIP CRANE: Right, in Pakistan. 13 JOHN ANDERSON: To what extent? 14 PHILIP CRANE: Well, I mean would you have 15 given him the military and economic assistance as 16 the president proposed? 17 JOHN ANDERSON: I would certainly have not 18 suffered the humiliation I hope that this administration 19 has suffered. 20 PHILIP CRANE: Well, I know that. I mean, 21. John, the question-- the question I asked you is 22 did you or did you not favor providing assistance 23 to Pakistan? 24 JOHN ANDERSON: Short term. 43 1 PHILIP CRANE: Short term, all right. 2 JOHN ANDERSON: Short term, not a long term 3 military relationship as we had with the Shah. 4 PHILIP CRANE: The question I want to ask is, 5 there is no evidence whatsoever that President Zia's 6 record on human rights is any better than the Shah's 7 was. And even the Washington Post, which no one 8 can accuse of being a conservative journal, engaged 9 in a discussion of what to do over there in that 10 region. And the president, of course, had recommended 11 giving all kinds of aid to Pakistan, and the Indians 12 were upset over that. And the bottom line, and the 13 Washington Post editorial was we should recognize 14 President Zia for what he is, the man who runs 15 Pakistan. And just because the decision is not an 16 easy and clear cut one to make, we should nevertheless 17 give the aid to Pakistan. 18 Now, I happen to rarely agree with the 19 editorial positions of the Washington Post, but 20 there's one time they spoke a truth. Now, that same 21 truth with respect to General Zia, they should have 22 articulated about the Shah. Because the fact of the 23 matter is, this administration scuttled the Shah's 24 Government. They're the ones that sent General Heiser 44 1 over there to tell the generals not to back him up 2 when he had internal problems. And, you know, the 3 Ayatollah Shariat-Madari, who is Khomeini's com- 4 petitor, said in a blistering sermon a couple of 5 months ago conditions in Iran today are no better 6 than they were under the Shah. That may be for 7 Iranians. I tell you for the rest of the world 8 conditions are infinitely worse. We've got the 9 potential threat, because of the foolishness of this 10 administration, of a nuclear confrontation over 11 there because of their own actions and the perversity 12 of all of this is the president enjoys a wave of 13 popularity because of it. 14 MODERATOR SMITH: All right. We've got to 15 move away from foreign affairs. 16 Please don't applaud. Before we move 17 away from foreign affairs, Mr. Bush wants to say 18 something and Governor Reagan wants to say something. 19 Mr. Bush? 20 GEORGE BUSH: Well, in my view, when you see 21 the world as it is and not as you wish it were, you 22 have to sometimes make tough choices. You're not 23 dealing with perfection on human rights or no human 24 rights at all. And I will not engage in a revisionistic 45 1 view of the Shah of Iran. Yes, there was some 2 brutality. But is human rights better off today? 3 America held hostage, revolutionary tribunals with 4 no legal procedures at all, lining up people and 5 shooting them? And you have to consider your human 6 rights. I would have a foreign policy that was 7 moral and steeped in the tradition of human rights. 8 But I also would consider the strategic interests 9 of the United States. 10 And I'm sick and tired of hearing us 11 apologize for people that we've supported around 12 the world. Let's look at the whole record. And, 13 yes, there was some brutality. But at least there 14 was some adherence to international law. 15 MODERATOR SMITH: All right. Governor? 16 RONALD REAGAN: It's along this same line. I 17 feel that I have to defend myself against appearing 18 as if I am one who would support any kind of monster 19 because of my inordinate fear of communism, which 20 the president told us we got rid of in Notre Dame 21 University in his first five months in office. 22 I was in Iran less than two years ago. 23 There's been a great deal of demagoguery about that 24 regime. But this man, whatever faults we may find 46 1 in their treatment of criminals or their treatment 2 of dissidents or whatever, is typical perhaps of 3 the whole area and many countries in the world. It 4 would not meet our test of human rights. 5 But at the same time, this man was trying 6 to lift his people up to the level that we enjoy. 7 Those women today are not allowed to be educated. 8 They're back in the 15th century. They weren't 9 allowed to be educated in Iran until he came in. 10 When I was there, young women were in the university 11 learning to be doctors and lawyers, studying for the 12 professions. He had created a land reform program, 13 and the first land that he put into it was his own 14 personal land holdings to be divided up among the 15 peasants in farms. Maybe the reason he's in trouble 16 with the Mullas was because they were the next biggest 17 landholders, and he took their land and gave it away 18 to the individual farmers, and they all got mad. 19 But I saw the low cost housing that he 20 was building. I saw the streets teeming with auto- 21 mobiles and traffic, and he was really-- maybe he 22 moved too fast. Maybe that was one of his problems. 23 But, believe me, this was a progressive 24 regime. And the funny thing is, every president back 47 1 to Harry Truman, every one of them, Democrat and 2 Republican and up to and including Jimmy Carter, 3 every one of them is on record with a statement 4 endorsing the humanitarianism of the Shah's regime 5 and what they found there that was desirable and 6 acceptable and that we could approve of, and that 7 was-- Jimmy Carter did it in a New Year's toast, 8 probably with ginger ale, but said the most 9 grandiloquent things about it. But a few months 10 later was doing just what Phil Crane said, scuttling 11 that administration. 12 Now, we send a human rights group over 13 there from the United Nations, a Commission, and 14 one representative from Algeria, a representative 15 from Libya. Don't tell me that they're observing 16 human rights. My complaint with the hypocrisy of 17 this administration is simply this, that we seem only 18 able to find human rights violations among our allies. 19 At the same time that we want to cozy up to and hug 20 and kiss, as he did Brezhnev, the Soviet Union where 21 there are no human rights existing at all. If we're 22 going to really mean it about human rights, then let's 23 thumb our nose at the Soviet Union and stop sending 24 them all that technology and all the things that we're