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FOIA Number: 2011-0584-F FOIA MARKER This is not a textual record. This is used as an administrative marker by the William J. Clinton Presidential Library Staff. Collection/Record Group: Clinton Presidential Records Subgroup/Office of Origin: Communications Series/Staff Member: Mark Gearan Subseries: OA/ID Number: 7550 FolderID: Folder Title: Meet the Press 11/7 Stack: Row: Section: Shelf: Position: S 90 4 11 2 THE WHITE HOUSE MASTERCOPY fle: Meet The Press 11/7/93 FROM : GRUNWALD, ESKEW8DONILON TEL: 202 973 9408 NOV. 5.1993 2:41 PM P 2 MEMORANDUM TO Mark Gearan FROM Mandy Grunwald DATE November 5, 1993 RE President's Appearance on Meet the Press As you requested, a few thoughts on the President's appearance on Meet the Press. First, a few general points about style. 1. Be the President, not the pundit. Russert will try to draw the President into an analysis of where the votes are on NAFTA, why Republicans won so many elections on Tuesday etc. I know it's tough for him, but he's got to resist his inclination to be Bill Schneider instead of Bill Clinton. 2. Be confident, not combative or defensive. I've noticed recently that the President has sounded defensive and overly combative on a number of issues from his accomplishments to date, to his effort on NAFTA, to his foreign policy decisions. It's important that he not let Russert make him defensive, but be confident and firm. 3. Talk about people, not macro-policy or Congressional language. The President needs to get to back to one of his greatest strengths - talking about the challenges that families are facing. Lately, he's been talking in more macro terms ["economic stagnation" instead of "families who are working two jobs just to make ends meet"]. 4. Don't get trapped in the details or the numbers. Russert loves numbers questions ["How can you justify 100 million people paying more for health care..."] or specific policy questions [the sugar & citrus side deals for NAFTA]. The President obviously has to answer the questions, but he's got to make sure he doesn't get trapped in the details, but uses them 10 make his broader thematic points. 5. A little candor and A little humor go a long way. FROM : GRUNWALD, ESKEW&DONILON TEL: 202 973 9408 NOV. 5.1993 2:41 PM P3 As to the substance of what the President should convey. I'm not going to make specific issue by issue suggestions. I'll convey my health care advice separately. Overall, I think he should convey a sense that he is tackling the real problems of real people. The American people are struggling to make ends meet in a changing world. We're trying 10 provide them the tools and security to do that. How? * Creating jobs * Breaking down trade barriers * Getting our fiscal house in order * Providing the security of health care that can never be taken away * Providing the opportunity to any child, regardless of income, who wants to go to college. Finally, I hope you have prepared him with answers on Moynihan's ammunition tax and the whole Packwood mess. On the latter, 1 hope he has no problem slamming the Senate and saying that this week's events remind people of everything they dislike about Congress. Further, that it's unfortunate that the focus on the Senator's diary has obscured the very troubling question of sexual harrassment. Let me know when the prep session will be on health care, or any other sessions you would like me to join. November 4, 1993 TO: Mark Gearan FROM: Bill Galston SUBJ: Meet the Press No individual issues in my domain seem terribly burning, but I do want to raise two larger contextual points. 1. Like it or not, Tuesday's elections are likely to form the context for the President's interview. Analysis and commentary such as today's articles by Al Hunt, David Broder, Tom Edsall, and others will constitute the conventional wisdom baseline for Russert's opening political questions, which will suggest that the voters are registering their disapproval of the President and administration and that things look bad for 1994 and beyond. I don't believe that our current public line--that Tuesday simply represents a continuation of the public's desire for change--is entirely adequate. In my judgment, the President should begin his response by forthrightly acknowledging the actual content of the public's complaints: violent crime without the certainty of swift punishment, higher taxes without improved government performance, an economy in recovery that still hasn't generated enough jobs and opportunity. He should then say that turning the country around is a huge job that will take time. "We've made a good beginning, but there's much more to do. The administration's historic deficit reduction has set the stage for a long period of steady economic growth and job formation with low inflation. Economic developments in recent months have been very encouraging. We've begun to attack the federal government's archaic procedures and entrenched bureaucracy. Within the next year, we're going to enact fundamental reforms in health, welfare, crime, and education. And the passage of NAFTA will mean more production right here iQ America, more exports, and more high quality jobs. That's a record on which Democrats can run and win. But I don't expect the American people to take my word for it. They're going to judge our party and administration by results, not rhetoric. If they can't feel the change in their lives, it doesn't matter what I say. And if they can, it doesn't matter what my critics say." 2. I think the President was really on the right track in his North Carolina speech, and he should return to it. During the interview, he should seize every opportunity to relate specific questions to the broader themes of security versus insecurity and change versus the status quo: "It's my administration's responsibility to help the American people face up to the changes that we can no longer postpone evade. But if people feel insecure--in their streets and tl. schools, about their jobs and their health care--it will be harder for them to summon the courage to change. The politics of nostalgia just won't work. We cannot freeze change and return to a vanished past. But to the millions of Americans who feel so threatened today, we must extend a helping hand and a solemn pledge: when you accept the challenge of change, you won't be abandoned. And that's what my administration is all about: getting beyond the false choice between the politics of protection and the politics of abandonment, and recognizing that we can't advance unless we go forward together." November 5, 1993 MEMORANDUM FOR THE PRESIDENT FROM: Ann Walker, Paul Meyer SUBJECT: Meet the Press Background Information & Tim Russert Positions HISTORY NBC's Meet the Press debuted on November 6, 1947, making it the longest-running show on television. The show's first host was Lawrence Spivak who remained with the show until his death in 1975. He was followed by, respectively, Bill Monroe (9 years), Marvin Kalb, Roger Mudd, Chris Wallace, and Garrick Utley. Tim Russert took over the show on December 8, 1991 and expanded it to a full hour. Since then, the ratings have nearly doubled, beating "This Week With David Brinkley" and "Face the Nation" in Washington and New York. HIGHLIGHTS Over the years, Meet the Press hosted every president since John Kennedy, though only Carter and Ford were interviewed while in office. Jimmy Carter announced the U.S. boycott of the Moscow Olympics on the show in January, 1980. Rep. John Kennedy did his first television interview on the show, as did his brother Robert. Former President Herbert Hoover appeared in 1955. PREVIOUS APPEARANCES This will be your sixth appearance on Meet the Press. Previous appearances were: 9/6/87; 2/25/90; 5/5/91; 1/5/92; 3/22/92. On your last appearance, with Andrea Mitchell and David Broder, debate centered on the character issue; the gas tax; Mrs. Clinton's role; congressional reform; the Seawolf submarine; and the choice of a running-mate. On the January 5, 1992 show, discussion focused on trade with Japan, controlling the budget deficit, health care, term limits, welfare reform, and Middle East peace. On May, 5, 1991, you debated the direction of the Democratic party and the DLC with Rep. Bill Gray. Selected quotations from previous appearances: Deficit: "I think that reducing the annual budget deficit to zero is very likely possible in the next four years if we can control health care costs and stop the financial failures because of defense reductions and because of the enormity of health care cost increases driving entitlements." (1/5/92) Health Care: "I don't want to make any American pay more for the same health care." (1/5/92) Medicare and Medicaid "Means testing means you don't get them at all if you're above a certain income. I said before and I will say again in connection with a comprehensive national health program, I would be for imposing increases on Medicare recipients at high levels of income." (3/22/92) Gas Tax: In response to Andrea Mitchell's claim that your criticism of Senator Tsongas on the gas tax contradicted with your record in Arkansas: "What I said was I was opposed to the federal government raising the gas tax up to 5 percent a year every year for 10 years, a 50-cent increase." (3/22/92) Mrs. Clinton's Role: "No, she wouldn't be a co-president. We have our difference of opinion, and in the end, I have to decide I would rely on her very heavily for advice and for input And since she does care about [public issues] and since if I were to become president, she'd have a chance to work on those issues, that's what I assume she would be doing." (3/22/92) Political Reform: "I think the Congress has been basically entrenched in its ways for a long time, and it's become increasingly subject to the influence of organized interest groups through the power of PACs and the reelection process I think they should pass a law which says that political action committees can give no more money than people They ought to pass a law limiting the aggregate amount of money that can be spent in any race for Congress or Senate and mandating open debate in the airwaves so that the media can become an instrument of education, not a weapon of assassination." (3/22/92) Trade with Japan: "[President Bush] should say to the Japanese, look, there are at least twenty significant areas - high tech electronics, agriculture, construction, services - where your trade barriers are costing us $10 billion and $300,000 jobs a year We're going to have to [reduce] these trade barriers if you don't want us to retaliate." (1/5/92) RUSSERT PROFILE: Timothy J. Russert, the 43 year old NBC Washington bureau chief has moderated Sunday morning's "Meet the Press" for the past two years. In April 1985, he supervised the NBC News "Today" program live broadcasts from Rome, negotiating and arranging for a televised private mass and greeting form Pope John Paul II, a first for American television. In 1986 and 1987 he led NBC News week-long efforts from South America, Australia and China. In 1990 he oversaw production of prime time news special "A Day in the Life of President Bush" and in 1993, "A Day in the Life of President Clinton." Prior to joining NBC News, Russert served as Counselor to New York Governor Mario Cuomo in 1983 and 1984. From 1977 to 1982, he served first as Special Counsel and then Chief of Staff to Senator Moynihan. Russert was also, at one time, an altar boy and a garbage collector. Mr. Russert was born in Buffalo, N.Y. on May 7, 1950. He is a graduate of Canisius High School, John Carroll University and the Cleveland-Marshall College of Law. He is married to Maureen Orth, a writer for Vanity Fair. They live in Washington, D.C. with their eight-year old son, Luke. Russert is also a vociferous supporter of the Buffalo Bills, and often refers to them on his show. The Bills, who share the best record in the NFL with the Dolphins (6-1), have lost the last three Super Bowls. Russert has commented that his first question on Sunday will be: "Are you going to invite the Bills to the White House when they win the Super Bowl this year?" Also, Miami coach Don Shula, who hopes to break George Hallas' 324 win record this Sunday, graduated from Russert's alma mater, John Carroll University. RUSSERT ROAST Tim Russert was roasted October 19 at the fifth annual benefit for the Spina Bifida Association of America, which raised $200,000 for research and treatment of the disabling spinal condition. (Al Hunt and Judy Woodruff's son has Spina Bifida). Attendees included George Stephanopoulos, Dee Dee Myers, Roger Altman, Molly Raiser, Donna Shalala, Sargent, Eunice, and Maria Shriver, and Arnold Schwarzenegger. The night was full of NBC jokes and political potshots directed at the roasters instead of the roastee; Russert received an unusually mild ribbing. TIM RUSSERT; Comments from the Charlie Rose Show, November 4, 1993 Russert appeared on the Charlie Rose Show Thursday night with Cokie Roberts, Johnny Apple and Andrew Sullivan. In discussing Sunday's show, he said he will ask you what went wrong and what worked over the past year and where you plan on taking the country in the future. He also plans to cover NAFTA, health care, crime, and foreign policy, specifically Haiti and Somalia. He advised you to be realistic and optimistic and fight hard for NAFTA and health care, and to try to move health care and the crime bill through very quickly. He also spoke about the following issues: Tuesday's Election Result: He said that defeats in New York, New Jersey and Virginia should serve as a wakeup call to the White House and the Democratic party. He also pointed out that, on Monday, the Administration told the press to look towards the NJ election as a referendum on raising taxes. Now that Florio has lost, Russert feels that the Congress will say, "let's go slow raising taxes for health care." NAFTA: He urged you to tell Congress that the day after the NAFTA vote you must go to Seattle to meet with Asia's foreign ministers and you do not want to go wounded. The Clinton Administration: He said that the administration has been and will continue to be a roller coaster ride. He pointed out that there are many similarities between the first year of the Kennedy and Clinton Administrations. This White House is not hierarchical, but like "spokes in a wheel." There are no gatekeepers. The President is more relaxed than he was when he took office. George Stephanopolous seems to be a very influential sounding board for the President. The First Lady has redefined the role of women in D.C. Al Gore has been helpful to the President. He congratulated the Administration on the handling of Russia, the Middle East and National Service. Recent Poll: He referred to a 10/28 Peter Hart/Bob Teeter poll which matched Clinton, Perot, and Dole in 1996. The results were Clinton 37%; Dole 32%; Perot 23%. In a Clinton-Dole match-up, both got 45%. TIM RUSSERT; Questions and Statements from "MEET THE PRESS" Following are selected statements and questions by Tim Russert on recent "Meet the Press" shows. Russert is generally supportive of the Administration. Most of his questions on health care focus on the financing. His NAFTA questions tend to deal more with politics and less with policy. He has been critical of American military involvement abroad and has questioned America's unconditional support of Yeltsin. RUSSERT ON HEALTH CARE "Health care is not going to be the political bonanza the Clinton White House thinks it is going to be And when the truth comes out that you have to have a higher premium, limit your choice of doctor, and perhaps even limit the amount of services you might get, it's not going to be a popular proposal." ( 8/8/93) In an October 31 interview with Ira Magaziner, Russert asked how the Administration planned to convince the American people to pay a higher price for health care. He is skeptical of the Administrations claims on financing. "If we want to limit [health care spending], or keep it as close to $900 billion as possible and eliminate or at least slow down the rate of growth, somebody's going to have to lose. If we have a fixed amount of money and we're trying to bring in 35 million more people into the system, there are no losers? Is this going to be Utopia?" "When Medicare was created in 1965, it was projected it would cost $9 billion. It now costs $106 billion. Medicaid, they said, would cost a billion. It costs $76 billion - 76 times as much. Why wouldn't we think that your plan, which his so much broader, even if it costs twice as much as your projecting, which is far less than the growth of these programs, wouldn't put this country near bankruptcy?" (10/31/93) On the September 19 show, Russert interviewed Senator Moynihan on health care. Moynihan referred to the Administration's hopes of recouping $238 billion from Medicare and Medicaid programs and providing $90 billion in deficit reduction by the year 2000 by saying, "It's fantasy, but accurate fantasy. The numbers all come out of their computer that way. They won't last, they mustn't last." (9/19/93) RUSSERT ON TAXES Russert hosted Carville and Haley Barbour after the budget vote. Russert was very critical of the Republicans mislabeling the Clinton budget as the largest tax increase in history. He asserted Reagan's 1982 tax increase ($26 billion in 1993 dollars), if adjusted for inflation, was the largest. He also pointed out that both Ronald Reagan and George Bush raised the gasoline tax. In defense of the Clinton plan, he cited the example of Mississippi, where, of 2.5 million residents, only 6,082 will pay higher taxes while 306,581 will get a tax break through the EITC. (8/15/93) RUSSERT ON NAFTA In repeated interviews with Administration officials, Members of Congress, and reporters, Russert asked: "How committed is this President and his Administration, the First Lady and all the political advisors in the White House to the passage of NAFTA?" (9/19 to Gergen) Russert has, on several occasions, referred to Speaker Foley's statement: "if there was a secret ballot, NAFTA would clearly pass." On October 3, he asked both Gephardt and Gingrich if they agreed, and, if so, what that said about the House of Representatives. Gingrich predicted it would pass two-to-one on a secret ballot. Gephardt would not commit. Russert pushed Gephardt on his motives for opposing NAFTA. He quoted one senior administration official who said "Intellectually Dick is for this treat, but politically he's playing House politics; he wants to be speaker; he's pandering to labor." Gephardt responded by citing his long-standing concerns with a free trade agreement and his interest in a "NAFTA done right." (10/3/1993) RUSSERT ON ROSS PEROT "President Carter recently said "Unfortunately in our country now, we have a demagogue, who has unlimited financial resources and who is extremely careless with the truth, who is preying on the fears and uncertainties of the American public. Is Mr. Carter correct?" (9/19/93 to Gergen) "But Mr. Perot is a big boy. You have to hold him accountable." (9/19/93 to Gergen) "Intellectually, on the deficit, his [Perot's] plan in the end of the campaign last November was more intellectually honest than either Bush or Clinton But when he first started out, calling for $400 billion in cuts by waste, fraud and abuse, and getting money from Germany and Japan, it was kooky Now he's been very constructive focusing on the deficit. I am interested and intrigued by the way he's supporting constitutional amendments to balance the budget, term limitations, taking on some issues that have a much more political tone." (3/21/93) RUSSERT ON REINVENTING GOVERNMENT "Your plan - you say - would save $108 billion over the next five years. My calculation is that's a cut in federal spending of about 1.3%. And, at the same time, the cost of entitlement is going up, going up a trillion dollars. How are you going to go after that trillion-dollar problem rather that focus on this 1.3%:" (9/12/93 to Gore) RUSSERT ON GAYS IN THE MILITARY "I think the President's gone for half a loaf and I think that's better for gay Americans and probably the right thing to do politically." (7/18/93) RUSSERT ON FOREIGN POLICY Russia: "Boris Yeltsin is abolishing political parties, closing down newspapers. Isn't it about time for you to tell Mr. Yeltsin as a price for continued U.S. support he start behaving as a democrat with a small "d" and not a totalitarian." (10/10/93 to Christopher) "Should we take a wait and see attitude before we continue this complete support for Mr. Yeltsin?" (10/3/93 to Gephardt) Haiti: On October 17, Russert asked Madeline Albright about the reports of Aristide's mental instability. He also pushed her to define the U.S. mission there. "What is our mission in Haiti? To what end will we go to reinstate Mr. Aristide? If the blockade does not work, will the U.S. intervene militarily in Haiti?" (10/17/93) Somalia: "There seems to be some ambiguity today though as to what our posture is vis-a-vis General Aidid. And a week ago today, 17 Americans died and 75 were wounded trying to capture General Aidid. What do you say to their parents when a week later the policy seems confused and ambiguous?" (10/10/93 to Christopher) "Can we say to the American people this morning then that this will be strictly a humanitarian mission and there will be no more offensive raids by U.S. Rangers or others to capture General Aidid and his supporters?" (10/10/93 to Christopher) Bosnia: In relation to President Izetbegovic's request that a deadline for bombing be set if the siege of Sarajevo is not lifted, and your response that only NATO can do that, Russert asked the Vice President: "How did we come to the point where NATO is making foreign policy decisions like that for the United States?" (9/12/93 to Gore) Middle East: "What will it cost the taxpayers of the United States to help guarantee peace in the Middle East?" (9/12/93 to Gore) The Vice President responded that the price of peace is invariably less than the price of war. THE WHITE HOUSE WASHINGTON November 6, 1993 MEMORANDUM FOR THE PRESIDENT FROM: MICHAEL WALDMAN SUBJECT: NAFTA EMPHASIS FOR MEET THE PRESS * The NAFTA emphasis on Meet the Press should continue to be upbeat and visionary, as was the case in the remarks at the Lexmark plant in Kentucky. There is still a need to lay out the basic, positive case for why NAFTA will expand exports, create jobs and bolster competitiveness. As in the last weeks of a political campaign, the public is only now focusing with any intensity on this issue, and we cannot assume that the basic sale has been made. * Clearly, the possible encounter between the Vice President and Perot may be the subject of some interest. You won't be in a position to make major news, but in talking about it, it is important to weave in our argument/facts so it's not just a "horse race" quote: We are willing to debate Ross Perot because he is spreading misinformation to the American people. Working people have legitimate fears, but this agreement makes things better, not worse. Perot is trying to stir people up without regard for the truth. We have the facts on our side; he has fear on his side. * We will have a better sense tomorrow of what can be specifically newsworth (particularly after the radio address). HEALTH SECURITY 1. WHY UNIVERSAL COVERAGE IS IMPORTANT : Your most important goal is to deepen the 'line-in-the-sand' you established by vowing to sign only a bill that would provide universal coverage and comprehensive benefits. That means making a moral argument as well as the jobs and cost arguments for universal coverage. 2. READ THE BOOK: Amplify the message you delivered earlier this week, and strongly encourage the American people to learn about the plan and recognize what it will mean to them. Of specific interest here are the premium costs and the analysis on how much more or less consumers will pay. 3. HEALTH INSURANCE ASSOCIATION OF AMERICA: Without being defensive, continue to expose HIAA motivations in opposing the plan. 1. WHY UNIVERSAL COVERAGE IS IMPORTANT HEALTH SECURITY -- Real health security means comprehensive health benefits guaranteed for every American that can never be taken away and that's possible only with universal coverage. We cannot continue with a system that leaves millions without adequate care and without security. That's wrong. It's time the American people no longer had to live with the fear that they could lose their health insurance at any time, that they won't be able to get health care when they or their children need it, that if they lose their jobs, they lose their health care. JOBS -- With American workers changing jobs so often they'll hold an average of eight jobs in a lifetime, we need universal coverage to make sure no one will ever lose their health insurance. COST Without universal coverage, too many will continue to get care from emergency rooms instead of doctor's offices -- they've waited too long, their illnesses are more severe, and the costs are too expensive. Today, each of us pays part of the $25 billion health care bill for the uninsured. -- Newly available health insurance benefits at low wage jobs will encourage people to move from welfare to work. One study suggests that universal coverage could reduce welfare caseloads by up to 25 percent. -- Savings from simplifying and reducing the bureaucracy can't be realized without universal coverage. For example, a single claims form doesn't work unless everyone is in the system and following the same rules. (NOTE: In Congressional context, the Chafee-Dole bill and single payor are the only ones that would provide universal coverage. Chafee-Dole is closest to our proposal. Cooper-Breaux-Graham belong on the margins.) 2. READ THE BOOK > Get the facts. Learn about our plan. Read the book. It deals with nothing less than overhauling the system we all must depend on when we are most vulnerable, when we or our loved ones are sick. For that reason alone, it may be the most important book of information you'll read for yourself, your children, and others you care about. Understand what it will mean for you and your family -- comprehensive benefits you can never lose, premiums you can afford. The more people know about our plan, the more they support it. > Study the figures for a two parent family with children, premiums will average about $73/month, with a maximum deductible of $400. For an individual, premiums will average about $32/month. Reasonable prices considering today's constantly rising costs. > We've examined the impact this plan will have, including premium costs and out-of-pocket expenses such as co-payments and deductibles. Seven out of ten Americans will pay the same or less for benefits that are the same or better, with savings averaging about $61 a month. Three of ten will pay more, on average about $24 a month, but they'll receive benefits that can never be taken away and many will receive better benefits, such as preventive care. Let's be clear, without reform, every American can expect to pay higher insurance premiums and higher health care bills with no guarantee of security, no guarantee of benefits, and no guarantee that their health insurance will be there when they need it. 3. HEALTH INSURANCE ASSOCIATION OF AMERICA > Learn the truth. Recognize the distortions the special interests are putting into the debate. And understand what's motivating those special interests, like the Health Insurance Association of America. > The facts: My plan would provide every American with health benefits they could never lose; with a choice of plans and the freedom to choose their own doctor. It would put an end to lifetime limits, the practice insurance companies have of limiting benefits just when you need them most. And, it includes new prescription drug and long-term care benefits for seniors. > The insurance companies don't like the plan because it makes it illegal for them to indiscriminately raise rates, illegal for them to deny you coverage because of a pre-existing condition; illegal for them to drop your coverage because you get sick; illegal for them to put a limit on the benefits you could receive, taking away coverage when you need it most. They've forgotten why insurance companies were created in the first place and they've abandoned the old-fashioned principle that was at the industry's foundation: insurance is about sharing risk and about everyone taking responsibility. HEALTH CARE QUESTIONS AND ANSWERS for "MEET THE PRESS" November 5, 1993 THIS WEEK'S NEWS Q: Senator Moynihan this week proposed an ammunition tax to pay for health care and Secretary Bentsen could only say that he would consider it. Would you support an ammunition tax to help pay for your plan? A: I think that Secretary Bentsen spoke for the administration when he said it was something we'd be willing to consider. The bill I transmitted to Congress last week, however, was in no need of additional revenues. It has a responsible, conservative financing structure which will fully pay for my health care reform proposal. Q: Why all the confusion over who will pay more and how much? Do you really think your numbers are credible - considering how quickly they're changing? Just last week on this show, your senior health advisor said 40 percent of Americans would pay more. Now you're saying 30% will pay more. What's the deal? A: Let's be clear -- without reform, every American can expect to pay higher insurance premiums and higher health care bills with no guarantee of security, no guarantee of benefits, and no guarantee that their health insurance will be there when they need it. My plan provides every American peace of mind and security that health care will always be there. Ira referred to an earlier analysis based on premium costs alone that showed 40 percent would pay more in premiums. Of this 40 percent, 25 percent would get better benefits -- and would probably end up paying less overall once co-pays and deductibles are added in. And, 15 percent -- mostly young people who have the lowest rates in today's system -- would pay more for the same benefits. We've just completed a more accurate analysis including not just premium costs but out of pocket costs, such as co-payments and deductibles -- because these must be included if you're going to accurately measure what people pay. Some policies have deductibles as high as $3,000. HEALTH CARE Q & A November 5, 1993 Page 2 We found that seven out of 10 Americans will pay the same or less for benefits that are the same or better, saving on average about $61 a month. About 30 percent will pay more, on average about $24 a month, but they'll receive benefits that can never be taken away and many will receive better benefits, such as coverage for preventive care. Q: Why did you release the first set of numbers at all if you wanted more precise figures? How much of a political problem did those earlier numbers create? A: There is no political problem. The first set of numbers, taking only premiums into account, showed that most Americans -- 6 in 10 -- would pay the same or less for the same or better benefits. After the first analysis was finished, we realized that it didn't give us the whole picture. We needed to compare the total amount people will pay for health care -- not just premiums but co-payments and deductibles too. We think it's important for the American people and the Congress to have all the facts SO we did a more complete analysis to provide the most accurate and realistic picture possible of what people will really pay. And it showed that 7 out of every 10 Americans would pay the same or less for the same or better benefits Q: Both you and the First Lady have attacked the insurance industry pretty hard this week. Is this part of a new strategy to make the insurance industry the bad guys? A: We want the American people to get the facts about our plan, to read the book, talk about it with their co-workers, their family, their elected officials. And, we want them to recognize the distortions the special interests are putting into the debate like the ads being run by the Health Insurance Association of America -- and understand what's motivating those special interests. These ads have been disputed by independent source after independent source. They're running a new ad which says that the government will limit spending on health care under my plan. Well, that's wrong -- there's no limit on spending, but there is a limit on how much insurance companies can overcharge on premiums. And that's how they make a lot of their money and why they're SO upset about my proposal. HEALTH CARE Q & A November 5, 1993 Page 3 Q: The HIAA says your plan limits choice. Is that true? A: It's not true. One of the principles of our plan is choice -- ensuring people can continue to choose the doctor they want. Our plan increases the choices most consumers will have. Every American will be able to choose from at least three and likely more kinds of health care plans, no matter where they work. And the choice will be theirs, not their employer's. And, every American will be able to switch plans every year if they're not satisfied with their care or service. Q: The HIAA also says that the system will run out of money. With both premium caps and subsidy caps, how can you be sure that the system won't break down and run out of money? A: Our plan is based on the most responsible financing possible and on very conservative assumptions. There is a 15 percent "cushion" -- about $45 billion -- to cover unexpected costs. We believe that's more than enough to protect against even the most unforeseen emergency. For example, one model showed that a 2 percent increase in unemployment -- which would be massive and highly, highly unlikely -- would increase the costs of our insurance discounts by $2 billion a year. The cushion is nearly six times larger, about $11 billion a year and any funds that are not used in one year can be carried over to the next year SO that a contingency reserve will build over time. The fact is, you've got to consider the source of the charge. The Insurance Association of America is running a scare campaign. They don't like my plan because it would make it illegal for them to indiscriminately raise rates, illegal for them to deny you coverage because of a pre-existing condition, illegal for them to drop your coverage because you get sick, illegal for them to put a limit on benefits you could receive, taking away coverage when you need it most. They've forgotten why insurance companies were created in the first place and they've abandoned the old-fashioned principle that was at the industry's foundation: insurance is about sharing risk and everyone taking responsibility. Q: All of your advisors have been saying that if the system fails, you will recommend action to Congress. What could you do except raise premiums or cut benefits? HEALTH CARE Q & A November 5, 1993 Page 4 A: We believe that there are enough protections within the system to prevent us from ever reaching the point where emergency Congressional action would be necessary. Our plan is based on the most responsible financing possible and on very conservative assumptions. There is a 15 percent 'cushion' -- about $45 billion -- to cover unexpected costs. We believe that's more than enough to protect against even the most unforeseen emergency. For example, one model showed that a 2 percent increase in unemployment which would be massive and highly, highly unlikely -- would increase the costs of our insurance discounts by $2 billion a year. The cushion is nearly six times larger, about $11 billion a year and any funds that are not used in one year can be carried over to the next year SO that a contingency reserve will build over time. So we have that cushion, we have the reserve build-up. And, there are early warning mechanisms built in -- the alliances have options they can take when they see a problem developing. The system is designed to prevent the kind of situation you're talking about. We believe the financing is solid and the early warning system will be effective. But, if Congressional action is needed, it will be taken -- and not just on auto- pilot, as it has in the past, but in a way that can re-examine the system, identify, and solve the problems. Q. How do you respond to those who say that the only thing that connects your fall agenda is that both NAFTA and health care will cost American jobs? A. That is absolutely wrong. This is a pro-competitiveness, pro-jobs package. First of all, let's look at what is going on so far. The economy has created more private sector jobs in nine months than the previous Administration did in four years. Health care is going to lower costs for most businesses that now cover their workers, allowing them to increase wages, increase profits, or hire more people. Within a few years, overall business spending on health care will be down, which will lead to long-term wage and job growth. The studies our opponents cite on jobs have been discredited because they do not take into account either our discount system for small businesses or the jobs our plan will create. HEALTH CARE Q & A November 5, 1993 Page 5 NAFTA is more important for jobs than ever. Right now one of the things hurting our economic growth is that our exports are weak due to slow growth in Japan and Europe. We need to increase exports with countries like Mexico with whom we have surplus to create more jobs. Q: Are you giving older Americans less generous benefits than all other Americans, creating a two-tier system biased against our grandparents? We are not creating a two-tiered system: we are guaranteeing all Americans -- including seniors -- health care security, and enhancing the benefits older Americans have today. My plan is the only plan that invests Medicare savings in new benefits for older Americans, including coverage for prescription drugs under Medicare and a new community-based long-term care program. In fact, Dr. Arthur Flemming -- the former Secretary of Health under Eisenhower and the co-chair of an aging coalition called Save Our Security -- says that the proposal will "mean a strengthened Medicare program - providing greater security and expanded benefits for older Americans." And by simultaneously controlling spending on both the public sector and the private sector, we are narrowing the payment gap that exists today, which would get inevitably get worse under the alternative plans that have been proposed. Most of those plans control Medicare and Medicaid spending while doing nothing to control spending on the private side, which will likely result in an even bigger gap in rates between Medicare and Medicaid, and could mean more doctors would decide to stop seeing Medicare patients altogether. That's a two-tiered system. Q: On early retirees, why do you provide this huge subsidy to employers and then take back all the money with an "assessment"? Isn't that just a new tax? A: First of all, this benefit is something that we thought was important to protect working Americans from losing the benefits they've worked hard for all their lives. But we want to make sure that we're fiscally responsible about it, and SO we phase in the benefit, making sure HEALTH CARE Q & A November 5, 1993 Page 6 everything is fully paid for up front. The government will pick up 50% of the costs that employers now pay for their early retirees for three years. And, after that, it will guarantee the entire employer share. The retiree will pay the rest of the premium. Q: Why are you covering the early retirees at all? A: Right now, more and more companies are being forced to drop benefits for early retirees, leaving these employees who have worked hard and played by the rules all these years with no benefits. We want to make sure these workers have the security they deserve. And that's why we guarantee them comprehensive benefits. GENERAL CHANGES SINCE SEPTEMBER 7 DRAFT Q: Why did this process take so long? Compared to what? This is the most detailed, comprehensive plan for national health reform in history. One of the first things I did when I took office was to establish the Health Care Task Force chaired by the First Lady. Hundreds of people from around the country did an extraordinary amount of work in a very short time period. This has been an unprecedented process in terms of openness, consultation, thoroughness, and attention to detail -- and I welcome the national debate that this introduction will bring. And the fact is, we've changed the terms of this debate. No one argues any more that reform isn't needed. Everyone agrees the current system is broken and the time has come to fix it. Q. How does the legislation differ from the draft that leaked in September? NOTE: When asked to compare the "leaked" draft and the legislation: "First, let me make it clear that the policy notebook which was made public back in early September was just an early draft. The bill I transmitted last week is my Health Security Act. No one should be surprised that changes were made between September 7 and today. We had always intended to modify the plan as we ran our final estimates, HEALTH CARE Q & A November 5, 1993 Page 7 consulted with Members of Congress and interested groups, and worked out more refined policies." A. The Health Security Act which I presented to Congress has been carefully reviewed in the months since an early draft of the plan was made public. We have had an extensive consultation process with Congress, state leaders and interest groups which resulted in changes and clarifications to achieve the following goals: First, to ensure the most responsible and conservative financing possible For example, the Health Security Act now has a 15% reserve or "cushion" as a safeguard in estimates of the projected cost of discounts provided to small businesses and low-income families. Secondly, to minimize regulation in a health care system based in the private sector. For example, alliances will have to offer as many fee-for-service plans as meet qualifications and will not limit the market to three. Alliances may not conduct a bidding process to select and limit the number of fec-for-service plans offered, as the policy previously stated. Thirdly, to increase choices for consumers. For example, all plans -- even HMOs will make available a "point-of-service" option, where people can choose to go to any doctor they want. Fourth, to protect more small businesses. For example, discounts -- which formerly available to companies with less than 50 workers -- are now available to employers of up to 75 workers and vary with size and average wage. This is to provide adequate protection with a smooth transition as companies grow in size -- enabling small businesses to continue to thrive and create jobs. HEALTH CARE Q & A November 5, 1993 Page 8 Q. Why did you delay full implementation of the plan until 1998? A. This is incorrect. My plan will be fully implemented by the end of 1997. There have been changes in the pace of the implementation within the three years, but the full implementation deadline remains the end of 1997. Q: Why did you change your assumptions about the timing of the phase-in? A: As part of our extensive consultation with Governors and state legislators, we have been made aware of legislative and other constraints to rapid phase-in: some states have bi-annual sessions, others meet for short legislative sessions, etc. We have decided to be more conservative in our estimate of how rapidly we can expect states to get the new system up and running. It is important to note that we give states a two-year window from passage of federal legislation to implement the program, and our current timetable still assumes that nearly half the states beat that deadline. Q. Does everyone really have to pay 3.9% of their income for health care? A. Absolutely not. On average, the individual share of the premium for an average-cost plan will be between 1 and 2 percent of income. For most Americans who are now insured, this will be the same or less than they are currently paying for the same or better benefits. The ceiling was added to protect some people with low incomes living in areas with high health care costs who would not get sufficient protection from the discounts. The extra layer of security offered by the 3.9% ceiling assures those individuals that the responsibility to purchase health coverage will be manageable. D: Does your plan include an open-ended entitlement? A: No. As we've said, this plan is built on responsible and conservative financing. We felt an open-ended entitlement left the federal budget HEALTH CARE Q & A November 5, 1993 Page 9 vulnerable for unpredictable costs in the future, and that was not an option. This program must pay for itself, and costs must be clear and predictable. That said, we are confident we have been conservative in estimating the needed funds for discounts and that caps will never be reached. These estimates are based on sophisticated models built from very specific information about factors like family income data, numbers of firms at certain sizes and wage-rates, etc. Some behavioral changes -- both positive and negative -- are difficult to quantify in a program of this magnitude. This is why we have also specifically built in a cushion for these unknowns, giving us even greater confidence in these estimates. Q: Isn't a capped entitlement incompatible with universal coverage? A: Absolutely not. Health care security means universal coverage and comprehensive benefits that can't be taken away. As I said last week when I presented the bill, I will not sign a health reform bill that does not achieve universal coverage with comprehensive benefits -- security is non-negotiable. Q: Haven't you scaled back your benefits package by pushing mental health benefits and long term care far into the future? A: The phase-in for the mental health benefit has not changed. And we've always said that there were two primary reasons the mental health benefit needed to be phased in: first, we needed time to experience savings before we could extend certain benefits. Responsible financing means the program has to pay for itself and contribute to deficit reduction. Secondly, there simply isn't a good infrastructure for managed mental health today; we need time to build up the capacity. As far as the long-term care benefit, it is true that we have decided to phase it in at a more conservative pace. We simply couldn't afford to extend benefits before we had the savings to pay for them. HEALTH CARE Q & A November 5, 1993 Page 10 Q. Aren't we just seeing lower costs in your plan because costs are being pushed past the year 2000 - past the budget window - when new benefits like dental care and mental health coverage will be added? Is this sustainable in the long run? A: This plan is completely sustainable in the long run. In revising our assumptions and estimates to prepare the final estimates, we took pains to be as prudent and conservative as possible. This meant that in some cases, benefits needed to be phased in more slowly, until some savings had been generated. Over time, our deficit savings increase. As our plan saves more and more from getting Medicare and Medicaid under control, there are more savings available after 2000. So there is no question that we will have the capacity to bring on these new benefits in 2001 and 2002 and still bring down the deficit. Q. Many in Congress suggest that you wait to get the savings before you begin to provide generous benefits. What's wrong with that? A. This strategy misses the point entirely. Quite simply, you need comprehensive coverage to reform the system to get the savings. You have to provide the benefits -- that give you universal coverage -- that allow you to have real health care reform -- where you can control costs, stop-cost-shifting, start having more preventative care, and bring real competition to the health care system. Q: If the savings you predict don't come to pass, would you consider scaling back your benefits package to help make this plan more affordable? Our first principle -- from which we will not back away -- is security: To us this means a comprehensive package of benefits -- that is detailed, spelled out in advance and guaranteed SO that it can never be taken away. While we are willing to work with Congress on this legislation, we are committed to the benefits we have outlined. As I have said many times, health security -- which I define as universal coverage and comprehensive benefits -- is absolutely non- negotiable. I think that an employer mandate is the best way to achieve universal coverage while preserving a uniquely American system, rooted in the private sector. There are only a few ways to HEALTH CARE Q & A November 5, 1993 Page 11 guarantee coverage for all Americans. One is to raise a broad-based tax, and have the government finance and deliver health care. Another is to require all individuals to purchase insurance for themselves. The third is to require employers to contribute to coverage for all of their workers -- as SO many do today. Nine out of every ten people with private insurance get it from their employers and it would be disruptive to completely reverse this. Q: Haven't we learned from our past experiences in the Nixon era that price controls don't work? Aren't we really going back to these price controls under the guise of premium caps? A: We have considered -- but specifically rejected -- a policy imposing price controls on health care. Our primary strategy for cost containment is private sector competition -- creating the right economic incentives to bring costs in line and encourage health plans to compete on price and quality. But we strongly believe that, regardless of how quickly or how firmly competitive reforms take hold, we need to build some discipline and certainty into our system so that businesses and consumers know that their health insurance premiums will not be allowed to suddenly spiral out of control one year, and that the federal government will not spend without accountability. That is why we reinforce the competitive system with a fail-safe limit on health care premium increases. Our policy acts like a speed limit on how fast premiums can go up. Like a speed limit only affects those cars that are speeding, limits will only apply to plans whose prices go up faster than the targeted rate; it will not apply to any other plans in the area. In contrast, price controls call for government micro-management of every health care service, drug, technology and product. Price controls would have the government substitute its views for the markets in hundreds -- maybe thousands -- of decisions. We reject that type of micro-management in favor of letting a market that truly competes work. Q: The last thing we need is more government bureaucracy. Isn't that all these alliances are? HEALTH CARE Q & A November 5, 1993 Page 12 A: The last thing we want is big government bureaucracies, and that is exactly why we rejected a government-run plan. What we designed instead is a plan that calls for the minimal amount of new government needed to ensure that the market is operating to ensure real choice, real quality and real competition that serves the consumers -- and not the health care industry at the expense of the rest of us. We expect most alliances will be run by groups of local businesses and consumers, not by the government, and not by insurance companies. They are purchasers, not government regulators. We expect the alliance will function on a budget of about 2% of premiums -- reducing buying, marketing, and selling costs for employers and health plans. This will reduce overall administrative costs. Alliances replace thousands of small inefficient purchasers of insurance (small and mid-size employers and self-employed individuals) with one larger, stronger, more sophisticated buyer that's able to get better value and offer much more choice. People will continue to get their care through private health care plans. The alliance enables them to have maximum choice between those plans. D: Won't your health plan cause job loss? A: I'll tell you what will cause job loss -- sticking with the current system. Today, the rising cost of health care is a hidden tax on American workers and employers -- hurting businesses, limiting job creation and threatening our competitiveness. That is why we believe that comprehensive health care reform is a necessary element in a strategy to increase long-term economic growth, reduce the deficit, and create jobs. The bottom line is this: health care reform will bring down the costs of most businesses who provide insurance to their workers -- allowing them to create jobs and increase wages. CEOs at some of the top companies in America -- companies like Chrysler, Ford, Bethlehem Steel and Xerox -- have said that they support my plan because it will help them become more competitive. And even a leading health economist who has at times criticized our plan, Henry Aaron of the Brookings Institution, said that "Successful implementation of health care reform is one of the best pieces of news American business could receive." HEALTH CARE Q & A November 5, 1993 Page 13 Manufacturers -- the employers that pay the highest wages to middle-class Americans -- have been forced to lay off workers because of rising health costs. But a recent study (from the Economic Policy Institute) indicates that my plan will lower manufacturers' health costs and create over 258,000 jobs over the next decade. Small Businesses that currently provide insurance including the fastest growing businesses will be one of the biggest winners. The Wall Street Journal has called the plan "an unexpected windfall" for those small businesses. And the fastest growing small businesses are the ones that provide health insurance. Jobs in the Health Care Industry: In addition, there will be jobs created in the health care industry, particularly for nurses and home health workers who will be providing more care. Joshua Weiner, a health economist at the Brookings Institution, predicts that the Health Security Act will create 750,000 home health care jobs, and that overall the plan will be a job creator. Q: It seems that many Americans are uncomfortable with the idea of a National Health Care Board. What is your response? A: Well, if we were creating a board like some opponents of reform have described the National Board, I would be uncomfortable with it too. People who have opposed reform have seized on the National Board recently -- exaggerating both its staff and power to mis-characterize it as a huge bureaucracy. The Board will consist of only seven individuals, appointed by the President for staggered four-year terms. Recent reports have exaggerated the National Board's "enormous new federal bureaucracy" with "thousands of Washington bureaucrats." It has always been the position of the administration that if the Board has 100 employees, it will be far too many. The Board will set broad national guidelines for quality and then get out of the way and let states craft health care solutions that respond to their individual situations. It will oversee the state health plans and HEALTH CARE Q & A November 5, 1993 Page 14 guarantee that they meet federal standards, update the standard benefits package, ensure that the quality of medical care doesn't suffer, and assure that the nation's health care needs are being addressed. Q: You say rising health care costs are one of the main reasons you are doing all this. But isn't health care inflation coming down by itself? Although recent reports have indicated that medical inflation did not rise as quickly last year as it has in the past -- this is, by itself, no cause to rejoice. First of all, historically, every time comprehensive health reform has loomed on the horizons, those who profit from the waste and excess in the health care system have curbed their excessive prices for a time. It happened in the 1970's when President Nixon was putting together his health reform package. Leading health care economists, such as Uwe Reinhardt, have even dubbed this phenomena the "Hillary Factor" because -- ever since the First Lady was named Chair of the Health Care Task Force in January -- medical price increases have been slowing. You should also note that medical costs are still rising two to three times as high as other prices. The average employers' cost for health care benefits rose by 8% last year -- exceeding by far the 2.5% to 3% overall rate of inflation. And more than two thirds of companies with over 200 employees reported that their health care costs rose last year. And, this does not even include small companies, whose annual costs rise significantly more than those of large companies. Q: We can also expect to hear more in the coming months about the fact that the plan will cover abortions. How can you justify spending federal funds for abortion when that is prohibited today by law? A: One of the goals that we kept in mind when designing this legislation was to preserve those health benefits that Americans have today. We didn't want to take away anything -- just add security and protection to a system that is out of control. Most private insurance plans today offer "pregnancy-related services" -- which, in many cases, includes abortion -- and we don't think its fair to take these benefits away from women who now have them. HEALTH CARE Q & A November 5, 1993 Page 15 FINANCING/NUMBERS Q: Isn't it the case that not a single outside economist will validate your numbers? A: It's just not true. What may be true is that probably any experts who look at this plan may find some policy or political judgment they disagree with. But when you ask economists whether this plan is sound and whether the numbers add up, you find a lot of support -- among top economists like Uwe Reinhardt of Princeton, Henry Aaron of the Brooking Institute, and Ted Marmor of Yale. These are people who may sometimes be critical of our policy decisions, but they agree that our numbers are honest and sound. Typically estimates of the cost of a government health care program are developed by CEA and confirmed by other government analysts. We insisted on an unprecedented degree of outside review and validation -- with independent double- and triple-checking. Why? Because we wanted to get the best data available validated by the best people possible so that the national debate would be able to focus on the policy itself -- instead of getting caught up in minute debates about the numbers. Q: How do you respond to those who seek to cast doubt on your long-range cost estimates - claiming that when the Medicare program was enacted, it was estimated to cost about $9 billion in 1990 but ended up costing $66 billion - 7.5 times that amount? A: This criticism is exaggerated and unfair. Much of the difference between the actual and projected estimates has nothing to do with health care: the general price level (inflation) is simply much higher than anyone would have predicted in 1965. In addition, many benefits have been added over the years as the Medicare program was broadened. For example, non-elderly disabled persons and those with chronic kidney disease are now covered. Failure to predict these new expenditures is not a forecast error. HEALTH CARE Q & A November 5, 1993 Page 16 But in addition, times have changed, and our ability to forecast has improved. The people who are preparing the budget estimates for health care reform have much more data and significantly more advanced computers than their counterparts had in 1965. We also have developed sophisticated modeling techniques after almost three decades of experience in projecting Medicare and Medicaid expenditures. At the same time, we recognize the difficulty and importance of getting the numbers right. Experts at the Treasury Department and other agencies are making every effort to make our budget projections accurate. We have had an unprecedented process of developing and double and triple checking the numbers with outside experts to ensure they are as accurate and conservative as possible. Q. You had a hard time getting tax increases that only affected 2% of the richest Americans. Aren't you worried about a health care plan where you are raising some taxes and making 30% of all Americans pay more? A. No, we're not worried. Remember, under our plan, 7 out of 10 Americans will pay the same or less for the same or better benefits. And of the ones who will pay more some have bare-bones coverage now and will be getting much better benefits; and the rest are young, healthy people who will have the security of guaranteed, comprehensive benefits for the rest of their lives. And smokers will pay a little more because of the cigarette tax to make up for the health costs they incur. Q. Will this bring down the long-term deficit or will the deficit still spike up after 1998 even with these savings? A. First of all, our mid-session review already shows the long-term deficit not only being reduced by half in terms of our national income, but we believe that the deficit will now stay level even in the later years. So we believe that if we get the savings we expect from health care, we will see the line continue downwards even after 1998. HEALTH CARE Q & A November 5, 1993 Page 17 Q: Your administration has consistently maintained that your plan was financed with only a tobacco tax and an assessment on corporations who form their own alliances. Now we read that there are actually several other hidden tax increases in your plan - such as elimination of the tax benefit for flexible benefit packages. Why have these been kept a secret? A: There have been no secrets. As we have said all along, we are financing the plan by asking everyone to contribute to the cost of their health care, by slowing down the growth in federal programs and by a tobacco tax and a corporate alliance assessment. However, designing a system with a comprehensive package of benefits that is guaranteed for all Americans where employees' contributions are limited and all employers are asked to help contribute -- has resulted in some small changes in tax policy. In the case of the cafeteria plan, we decided to take health care out of the cafeteria -- where it is just one of many options, such as flexible leave, savings plans, and vacation days -- in order to make health security a guaranteed right for all Americans. In addition, one main focus of my health reform plan is to enable people to make cost conscious decisions about their health care alternatives -- paying a little more for higher cost plans and a little less for lower cost plans. Cafeteria plans -- which give the impression of "free" health care -- work against this objective, by artificially lowering the prices people pay for health care. Eliminating these artificial prices will allow people to become more aware of the true cost of for additional benefits. In order to preserve the benefits people have today, employers will still be permitted to pay 100% of the cost of their employees' health care if they choose, under our plan. This essentially allows them to continue providing their employees with pre-tax money for their premiums much as the cafeteria plan was designed to. OTHER PROPOSALS Q: All the other plans on the table today seem to accomplish all that yours says it will but with considerably less pain. What is your comment on that? HEALTH CARE Q & A November 5, 1993 Page 18 A: My plan stands alone as the only proposal that is universal, comprehensive, logistically feasible and politically realistic. It's the only proposal that keeps everything that's right about the current system in place-- private sector health care, employer-based coverage, choice of doctors and plans, and high quality American medicine -- fixes what's wrong without any new broad- based taxes. Besides a government-run system, it's the only proposal that achieves universal coverage without shifting the full cost of health care to American families, like Senator Chafee's plan. We have a lot in common with the Chaffee-Dole plan -- it is probably closer to our plan than any of the others. But, we think sharing the costs between employers and workers, as the current system does, is the best way to accomplish universal coverage. Nor do we think turning American health care over to the federal government involves less pain; they require several new federal taxes to raise huge new federal revenues. Most other proposals do not guarantee every American that they will never lose their health coverage. In fact, some plans actually encourage companies to drop the coverage they now provide their workers. And the other proposals don't do anything to expand coverage, while paving the way for discriminatory insurance practices to continue. One thing is clear, under these alternative plans, millions of Americans will continue to lose their health insurance, and the rest of us will foot the bill for their care. I have put forth a thorough and explicit proposal that answers the tough questions: it spells out what's covered, how the system works, and most importantly, how it's paid for. These other proposals are long on rhetoric but short on specifics. On all the decisions that affect Americans most-- who's in, who's out, what's covered, who pays -- they basically punt. If these other plans want to be a part of the debate, then fine, let's debate. But first, level with us and give us the details. Tell us what your plan will do for people. Under your plan, who can feel sure they'll have coverage? What will they be covered for? Which services will be covered and which will be denied? And most importantly, what will the whole thing cost, and who'll get stuck with the bill? If they really think their plans are better, it's time they come forward with specifics. November 5, 1993 To: Mark Gearan Fr: Gene Sperling Subject: Positive Themes for Mcct the Press Bob Rubin, Bob Reich, Alan Blinder and I discussed this matter and we felt that other than NAFTA and health care, the only economic theme he should stress is that 1) we have a comprehensive economic plan; 2) while all might not be well, it is working, and 3) that we care about jobs, have a job plan, and it has created 1.2 million private sector jobs in only 9 months. POSITIVE ECONOMIC THEMES I. COMPREHENSIVE PLAN FOR JOBS AND GROWTH THAT IS WORKING: [Strategy: Point out that we have a comprehensive economic plan to invest in our future -- not just separate parts -- that is starting to work, while recognizing that things are not good enough yet, and we need the rest of this comprehensive strategy to move us further toward solving our long-term challenges] WE CAME INTO OFFICE WITH A COMPREHENSIVE PLAN FOR ECONOMIC GROWTH AND JOBS. It was a plan to grow the economy and invest in our people, by borrowing less, investing more, making our tax system is fair, and that our people have the security to embrace the change we need to create economic growth. YES, WE STILL HAVE A LONG WAY TO GO, AND YES, THERE ARE FAR TOO MANY WORKING FAMILIES THAT THE ECONOMY IS NOT WORKING FOR, BUT WE ALSO NOW HAVE AN ECONOMIC STRATEGY THAT IS FALLING IS STARTING TO WORK AND PUT US ON THE PATH TO ECONOMIC RENEWAL Our historic deficit reduction is already bringing down interest rates and bringing up investment in housing, business and technology investment. We've passed a historic tax break for 20 million working families and houscholds making under $27,000. Our economy has now created 1.2 million private sector jobs in the past nine months -- that is 200,000 more private sector jobs created than were created in the last four years. AND IN JUST OUR FIRST YEAR, WE'RE MAKING GREAT PROGRESS AT INVESTING MORE IN OUR PEOPLE AND HAVING A COMPREHENSIVE JOBS STRATEGY including a new national service legislation, a technology reinvestment program to convert to a post-cold war economy, new job creating tax incentives for small business, empowerment zones, a new college loan program -- and we are hard at work to pass our school-work-apprenticeship program, comprehensive worker training. WE HAVE TO TAKE THE NEXT STEPS TO MAKE OUR ECONOMIC STRATEGY FOR GROWTH WORK. That means passing health care reform that not only provides security for all Americans, but is our best hope for keeping the deficit on a downward path. And that means going further with a job creation strategy by opening markets with NAFTA, and by finding the savings we need so that we can invest more in defense conversion, fighting crime and investing in our people. II. THE DEFICIT OR BALANCED BUDGET AMENDMENT: [Three part answer:1) We have done much and it is paying off already; 2) We are taking other intelligent steps. 3) But one way not to do this is to pass an rigid balanced budget amendment] 1) We have done much: I am deeply committed to ensuring that we enforce every penny of the $500 billion deficit reduction plan we passed the largest in history. That plan included a 12% real cut in all discretionary spending, which is unprecedented. 2) I am deeply committed to enforcing this deficit reduction plan, and keeping it on a downward path. The number one way to do this is to pass health care reform, because it is the 11-16% - increase in health care spending that threatens our long-term deficit. In addition we have additional savings from the Vice President's National Performance Review, a rescission bill, and I have just announced the creation of a Bipartisan Entitlement Commission to look at long-term ways to control entitlement spending SO we can bring down the deficit and have more funds available for the investments in the future we desperately need. 3) I oppose the balanced budget, however, for four basic reasons: One, almost every economists believes it can threaten our economic well-being by putting economic policy in a straight-jacked and has a tendency to make bad economic times worse, longer and more costly to jobs. Two, I believe it is a poor way to govern because it allows us here in Washington to hide from hard choices, and because it is so vague that it will end up putting economic policy in the Courts and not with our elected officials. Three, I fear that it would result in large middle class tax increases, massive cuts to Social Security and that it would have the effect of derailing health care reform, which is our best answer to bringing down the long-term deficit. Four, we need an intelligent process that brings down the deficit without threatening our national or economic security, by distinguishing between investment and consumption and not making unwise cuts in defense or in defense conversion, training or job creation --where few serious people do not believe that we must do more. III. BIPARTISAN COMMISSION: [Overall, remember that we must stress health care reform is the main answer to controlling entitlements, and that this Commission is another step -- not our main vehicle] Everyone on all sides of the political spectrum agrees that we must do something about entitlement spending if we want to bring down the deficit and still be able to invest in the things that matter for growth. The main problem is by far the escalation of health care spending. Medicare and Medicaid growing 11 and 16% respectively. Only with health care reform can we bring about long-term deficit reduction that helps the economy. If we just cut health care programs without reform, we would threaten the security of seniors and just shift costs to the private sector. But there are other serious issues on entitlements that are politically sensitive, and need both serious study and true bipartisan support. That is why I will think the work of this Commission could be so important. THE WHITE HOUSE WASHINGTON November 6, 1993 MEMORANDUM FOR THE PRESIDENT Rick Cliff FROM: BILL BURTON & CLIFF SLOAN Steam SUBJECT: Child Pornography Case 1. Call to Attorney General Reno You should call the Attorney General and tell her that: You want the broadest possible child pornography laws. * You expect the Justice Department to vigorously enforce our child pornography laws. * If the current child pornography law does not go as far as the sense of the Senate resolution suggests, you want the law changed promptly to go that far. 2. Talking points on "Meet the Press" If asked about the child pornography case, you should say that: * As a parent and a citizen, you are appalled if child pornography laws are not as broad and as tough as possible. You have called the Attorney General and told her that you want the broadest possible child pornography laws and that, if there are any loopholes in the current law, you want them closed promptly. * You were pleased that, in another child pornography case, the Justice Department on Friday asked the Supreme Court to overturn a lower court decision finding an important part of the child pornography statute unconstitutional. You expect the Justice Department to be very tough and aggressive in defending and enforcing the child pornography laws. You agree with the unanimous view of the Senate that the child pornography statute should have the coverage set out in the sense of the Senate resolution, and you support prompt legislation to accomplish that goal. * You will not comment on the particular Knox case or the position that the Solicitor General took in that case because the case is still in the courts and you don't want to risk jeopardizing a possible conviction. But let nobody doubt that you are personally sickened and outraged by any exploitation or abuse of children, and you are committed to this Administration doing everything it can to crack down on child pornography. If we find any weaknesses in the current laws or their enforcement, we will change them promptly. 3. Other possible actions * You could direct the Attorney General to identify any loopholes or weaknesses in the current child pornography laws and their enforcement, and report to you within 30 days. You could state that you will introduce legislation correcting any problems promptly after receiving the Attorney General's report. * You could direct FBI Director Freeh to set up a Child Pornography Strike Force to undertake tough and aggressive enforcement of the child pornography statute. November 4, 1993 MEMORANDUM FOR MARK GEARAN FROM: BRUCE REED SUBJECT: MEET THE PRESS: 1) Crime & Violence 2) Welfare Reform Here are the key points on crime, violence, and welfare reform: CRIME: The President will be asked about the House and Senate consideration of the crime and Brady bills. One clear message of Tuesday's elections is that Americans fear for their personal security. He can make news on crime by embracing the bipartisan Senate agreement on a Crime Trust Fund that will make good on his promise to put 100,000 cops on the street by cutting 252,000 bureaucrats. We'll be discussing this with him on Friday morning. On guns, he can point to likely Senate passage of the Kohl bill to ban handguns for minors -- which has the NRA's support -- and the growing momentum for the Brady bill, which should pass the House next week. He undoubtedly will be asked about youth violence as well. He should talk about the boot camps and juvenile detention measures in the Senate bill. If asked about drugs, he should talk about drug treatment for criminal addicts, which is also addressed in the crime bill. WELFARE REFORM: There's an outside chance he may be asked about the House Republican welfare reform plan, which could be released as early as next week. We don't want a headline here. Our response should be that we like parts of the GOP bill, we're not sure about other parts (it doesn't do enough on child support enforcement and it caps work incentives like the EITC), but we want to work with them. He can stress the waivers his administration signed this week in Wisconsin and Georgia. November 5, 1993 MEMORANDUM FOR THE PRESIDENT FROM: BRUCE REED SUBJECT: SENATE ACTION ON CRIME BILL The Senate voted 94-4 last night to double the crime bill and create a $22 billion Crime Reduction Trust Fund to pay for it by dedicating the 252,000 FTE reduction called for by the National Performance Review. The Crime Trust Fund includes: * $8.995 billion to fully fund your 100,000 cops pledge over the next 5 years, at a declining match of 75-50-40-25-10; * $3 billion for 10 regional prisons, with an 85% truth-in-sentencing requirement; * $2 billion for boot camps and state prisons for violent offenders; * $1.8 billion for the Violence Against Women Act; * $1.2 billion for drug courts for criminal addicts; * $500 million for grants to states to house violent juveniles; * $300 million for Safe Schools * $200 million for Police Corps * $150 million for law enforcement scholarships; etc. The deal was worked out with unprecedented bipartisan support not only from Mitchell, Byrd, Sasser, and Biden, but from Dole, Hatch, and Gramm. Gramm called it "the most important crime bill in years." The agreement extends only to the program funding; the Senate will now begin debate over habeas, death and other penalties, and a host of get-tough amendments to the bill. Certainly, you can welcome the Senate's bipartisan enthusiasm to help fulfill your campaign pledges. After all, this was your idea in the first place: You said in your speech to the 1992 Democratic Convention that as President, you would " streamline the federal government, and change the way it works; cut 100,000 bureaucrats, and put 100,000 new police officers on the streets of American cities." Putting People First, p. 224 Beyond broad support for the Senate action, the question is whether you want to embrace the agreement by bringing the sponsors (and key House members) down to the White House. That would ensure that you get the credit for your idca, and more important, let the country know that we are taking unprecedented steps to fight crime and violence. It might also increase the chance that Congress will have the bill on your desk by Thanksgiving. Not surprisingly, the sponsors would like to come down here for an event with you as soon as possible. At the same time, the Senate approach will have considerable consequences on the FY95 budget and beyond. Embracing the deal will put you on record for these funding levels. It is possible, though by no means certain, that the authorizations will be reduced in conference. But with the Senate Majority Leader and the Appropriations, Budget, and Judiciary Committee chairmen leading the charge for this bill, we may well be forced to face these budget consequences whether we embrace them now or not. Moreover, any effort by the Administration to downplay the Senate deal would give Bob Dole and Phil Gramm bragging rights to claim that they're willing to do more to fight crime than we are. The Senate will continue to debate the crime bill over the next few days, and pass it perhaps as soon as next week. On Wednesday, by voice vote, the House approved $5 billion in crime authorizations for cops, juvenile detention, and drug treatment. It is not yet clear whether the House and Senate will undertake a crime bill conference before Thanksgiving. On the gun front, the House Judiciary Committee reported out the Brady Bill yesterday without any weakening amendments. The House should vote on it next week. The Senate still plans to vote on Brady after dispensing with the crime bill. Metzenbaum, DeConcini, and Feinstein have reached agreement on a reasonable assault weapons compromise. We don't know yet whether they have the votes, or whether Biden will decide to let them offer it. DOMESTIC POLICY Q&A Meet the Press November 5, 1993 CRIME Q. On Friday, the Senate more than doubled the size of your crime bill, and paid for it with the cuts in the bureaucracy you recommended in NPR. Do you support the Senate's action? A. I'm delighted that both the House and Senate broke gridlock this week after all these years by setting politics aside and passing bold measures to fight crime and put more police on the street. I'm especially pleased about the support for 100,000 more cops in community policing, which is one of the most important things I came here to do. In my acceptance speech at the Democratic Convention last year, I said I wanted to reduce the federal bureaucracy by 100,000, and use the money to put 100,000 more police on the streets to give people the personal security they deserve. One message of the elections this week is that people want government to change, they want it to stop simply spending their money and start making a difference in their lives. That's what our crime bill will do. Q. Many believe that we are in the midst of an epidemic of violence in this country. Beyond your crime bill, what do you plan to do? A. We are in an epidemic of gun violence and youth violence. We're the only advanced country that lets teenagers roam the streets with assault weapons, better armed than the police. That's crazy. We need the Brady Bill, and I'm hopeful that the Congress will put it on my desk soon. And we need to use this crime bill to get handguns out of the hands of children. Young children in our cities shouldn't be planning their own funerals on the way to school. Q. You've been criticized about your Administration's lack of interest in the war on drugs. What do you plan to do about drugs? A. Drugs are a priority, and I've got a Drug Director in Lee Brown who knows how to fight crime and drug-related crime. The crime bill that is rushing through Congress will set up drug courts across this country that will require criminal addicts to get drug treatment to break their habit, so when they get out of jail they won't go out and prey on more people by committing more crimes to buy more drugs. WELFARE REFORM (This question is a longshot) Q. House Republicans are expected to announce a welfare reform plan next week that is designed to keep your pledge to end welfare as you know it. When can we expect a welfare reform plan from your Administration? A. I haven't reviewed the Republican plan yet, but I look forward to working with them. This isn't a partisan issue; Americans across party, class, and racial lines believe that the current system is broken, and we need to do much more to move people off welfare and into the work force. This past week, my Administration signed a waiver so the state of Wisconsin can try to do what I promised in my campaign: to give people the education and training they need for up to two years, but at the end of that time, to require those who can work to go to work. We've already done two things that will go a long way toward reducing the welfare rolls: expanding the EITC and introducing a health reform plan that will remove the current incentive for people to stay on welfare instead of going to work because that's the only way they can get health care for their children. & & A'S RE: DOJ'S CHILD PORNOGRAPHY BRIEF 1. Isn't the Justice Department's brief in the Supreme Court admission that the Clinton Administration doesn't care about child pornography? No, it certainly is not. This Administration is strongly committed to cracking down on child pornography. In fact, just this week, in another case, the Justice Department filed an appeal to the Supreme Court strongly challenging a federal court decision which struck down an important part of the federal child pornography statute. We will fight vigorously to protect this important tool in the war against child pornography. And let me be clear that nobody needs to convince this Administration about the need to be tough on child pornography and the exploitation and abuse of children. I am absolutely convinced that this Administration will have the best record of preventing abuse of children of any Administration in history. Attorney General Janet Reno and FBI Director Louis Freeh are as tough and experienced as they come in fighting crime and protecting children against abuse and exploitation. 2. But what about the Justice Department's brief in the Knox case? Let me explain a few facts. First of all, the Justice Department's brief says only that the lower court misinterpreted the particular language of the statute. The Justice Department's brief does not say that the defendant should go free. It says that the defendant's conduct should be considered under the correct standard. That's all. Also, I should point out that the Justice Department rejected many broad arguments raised by the defendant. A major part of the Justice Department's brief was devoted to opposing broad attacks on the child pornography statute. 3. But didn't the Supreme Court say that the defendant should go free because of the government's position? No. The Supreme Court said only that the case should go back to the lower courts for further consideration. 4. Will the government continue to try to get a conviction in the Knox case or will it drop the prosecution? As I said, the Justice Department's brief suggested that the case should be sent back to the lower courts to consider the defendant's conduct under the proper standard. The Supreme Court sent the case back to the lower courts, and any other statements about the pending case at this time would be inappropriate. 5. Won't the Justice Department's position in the Knox brief interfere with many prosecutions? Absolutely not. The facts of this prosecution were unique. There has never been a prosecution like it before. There will be no effect on the government's efforts against child pornography. 6. Did you approve of the Justice Department's position in this case? The Solicitor General made this determination in the ordinary course of reviewing Supreme Court cases. He concluded that the lower court had applied the wrong standard under the language of the statute and that the lower courts should consider the case under the correct standard. Neither I nor anybody else at the White House had any part in the decision. 7. What do you think of the Senate's "Sense of the Senate" resolution opposing the Justice Department's brief in this case? I have no problem with the Senate's action in expressing its views. I also want to point out that the Senate's resolution is part of the crime bill, which I have strongly supported and which will make our streets safer and more secure. As I have said many times, we need to pass the Brady bill, put more cops on the street, and impose swift and certain penalties on criminals. I urge Congress to pass the anti- crime legislation promptly and send it to my desk. 8. Would you support a change in the child pornography statute to make it as broad as the lower court thought that it was? Yes. I have no problem with such a change. [NOTE: Some DOJ officials have privately stated -- and been reported as saying without attribution -- that there may be constitutional problems with the broader interpretation. But DOJ's brief does not make this point. ] [Possible alternative answer: Any discussion about a statutory change is premature. The Supreme Court sent the case back to the lower courts to work out the proper standard and the resolution of the particular case, and we should let the process take its course. But let me say again that I and my Administration stand firmly against child pornography and against any abuse or exploitation of children, and we will continue to take vigorous actions to crack down on this terrible evil.] Q and A's on Drug Policy Your Administration is being attacked for your approach to the drug issue - your Interim Drug Strategy was vague on funding details and implementation, the staff of the Office of National Drug Control Policy has been heavily reduced, and various Members have criticized the lack of your personal involvement. What are you doing to deal with the pressing problem of drugs in this country? First of all, I have publicly mentioned the problem of drugs in our society in the context of both crime and violence and as a public health issue - more than fifty times since I have been President. This is not an issue that can, has, or will be ignored. Accordingly, I appointed Dr. Lee Brown, someone who has enormous experience and credibility on this issue, to be director of the ONDCP and I elevated the Director to the cabinet level. The Interim Drug Strategy that we have unveiled is an excellent blueprint that documents a reevaluation of both our domestic and international approach. There will be a new sense of direction towards the tough job of focusing on hard-core drug use and treatment. And there will of course be continued efforts on the law enforcement side - this policy will not ignore the safety and security of Americans. On the matter of funding, we have taken a hard look at the drug budget and have attempted at every turn to be able to put forth our agenda and have the money to pay for it. In addition to the initiatives in the strategy, we have made a significant effort to deal with drugs as they relate to almost every major initiative I have announced; there are substance abuse provisions in my health care package, school education proposals and community policing initiatives in my crime bill, drug education programs within the National Service program, and improved chances for better interdiction in the NAFTA. THE WHITE HOUSE WASHINGTON As of 11/6/1993 CLINTON ADMINISTRATION ACCOMPLISHMENTS AGRICULTURE Proposed comprehensive reforms on the nation's pesticide and food safety laws. Increased Farmers-Owned reserve to maximum allowable levels to help improve farm income and began reform of Federal Crop Insurance Program to make it more affordable and provide better service to farmers. Announced the $700 million Food for Progress program expanding U.S. agricultural exports to the Russian Federation. APPOINTMENTS Appointed the most diverse Cabinet and Administration in history: 29% African-American and 14% Hispanic. Appointed women to nearly half of all Clinton Administration positions and to six cabinet level posts. Named the first ever White House AIDS policy coordinator. BUDGET Passed the single largest deficit-cutting plan in history $496 billion over five years. Created a Deficit Reduction Trust Fund which locks up $496 billion for the sole purpose of cutting the deficit over the next five years. Issued an Executive Order to control the growth of entitlement spending while allowing for increasing caseloads. Outlined an additional $11 billion in new spending cuts over the next six years. Prepared by the Office of Communications Research (x7845) 1 CRIME & DRUGS Introduced a tough new crime package that places heavy emphasis on community and marks the first step toward putting 100,000 more police officers on the streets reducing gun violence. Ordered the Bureau of Alcohol, Tobacco and Firearms to tighten Federal licensing rules for gun dealers and to ban imports of foreign assault pistols such as the Israeli-made Uzi. Announced strong support for the Brady Bill - five day waiting period on the purchase of handguns. Signed Presidential Directives to reform federal firearms licensing procedures by improving background checks and imposing other security measures to keep guns out of the hands of criminals and to close loopholes on importation of assault pistols. Passed the Police Hiring Supplement, making $150 million available to communities most in need of community policing. Supported for the Violence Against Women Act. Elevated the Director of the Office of National Drug Control Policy to Cabinet rank. Introduced an Interim Drug Strategy which calls for more emphasis on hard-core drug users and links the drug policy agenda to other related initiatives - job creation, health care, reduction in crime, and education reform. Issued Presidential Decision Directive to increase the authority of the Office of National Drug Control Policy to better integrate national interdiction and foreign area drug control programs. Disrupted the international drug trade by intensifying pressure on the kingpin organizations, seizing their drugs and assets, and destroying their crops, most recently assisting the Mexican government in an eight ton cocaine seizure in the Gulf of Mexico. CIVIL RIGHTS Signed a Motor-Voter Bill on May 20, 1993 which greatly advances voting rights for 65 million Americans. Committed to vigorous enforcement of fair housing laws. HUD Secretary Henry Cisneros and Associate Attorney General Webb Hubbell took control of an East Texas housing authority that failed to desegregate housing developments in Vidor, an all-white community. 2 Committed to protecting the right of American women to choose. The Justice Department declared support for legislation preventing the use of force, threats of force, or physical obstruction to prevent women from visiting medical clinics. DOJ is also defending before the Supreme Court the position that the RICO statute can be used to prevent interference with the constitutional right to choose. Conducting nationwide investigation into discrimination by financial institutions to help end race discrimination in the provision of home mortgages. Argued the so-called Retroactivity Cases before the Supreme Court. The Administration's position is that the Congress intended the Civil Rights Act of 1991 to apply to cases pending on the date of enactment. Declared support for the Equal Remedies Act, which will remove damage caps on gender and disability so that equal remedies are available to all victims of discrimination. Committed to vigorous enforcement of the Voting Rights Act; to defending the constitutionality of African American majority Congressional districts; and to the elimination of language barriers in voting. Committed to guaranteeing equal educational opportunities. The Administration intervened on behalf of women at The Citadel, and is continuing efforts to gain admittance for women to the Virginia Military Institute. Committed to the vigorous enforcement of the Americans with Disabilities Act. The DOJ has already achieved its first consent decree in an ADA case, allowing people without drivers licenses - such as those with vision impairment - to pay by check using alternative forms of identification. DOJ has filed three lawsuits against dentists who refused to treat patients infected with HIV. DEFENSE Completed the first comprehensive strategic review of defense needs for the post- Cold War world. DOD's bottom-up review identified $91 billion in pragmatic specific cuts over the next five years. Announced a comprehensive five-year package to ensure that those people and communities that helped fight and win the Cold War are not forgotten. This effort includes a joint program of the Defense Department and the National Economic Council to provide economic development assistance to hard-hit communities, worker training to dislocated defense workers, and a new emphasis on dual-use technologies. Signed a Memorandum of Understanding with the Russian Federation that establishes a framework for a military and defense partnership, and accelerated destruction of further Nuclear weapons to reduce the nuclear threat to Americans. 3 Launched a comprehensive DOD review of nuclear posture for the post-Cold War world. Opened the first DOD office for Civil Military Cooperation programs. In July, Secretary Aspin released $57.7 million to begin several pilot programs. The Challenge Program is a 22-week residential program run by the National Guard for 16-18 year-old dropouts to earn their GED; there are ten states currently participating. The Medretes Program offers medical assistance to under-served communities in the US; there are currently five states participating. Developed a comprehensive new non-proliferation policy, including a fissile material cutoff, major departures in missile non-proliferation, and the strengthening of the Biological Weapons Convention. Signed implementing agreements for use of $275 million in nuclear safety, security, and dismantlement funds (Nunn-Lugar) with Russia and Belarus, and signed an umbrella agreement with Ukraine. Of $800 million available in Nunn-Lugar funds, $789 million has now been committed. DEFENSE CONVERSION Developed a plan to assist shipyards to move from military to commercial markets. The plan, "Strengthening America's Shipyards: A Plan for Competing in the International Market," was delivered to Congress. Promoted Defense Conversion through the highly successful Technology Reinvestment Project and comprehensive procurement reform. DISASTER RELIEF Mobilized federal resources to aid victims of the floods and restore commerce at earliest possible point. Signed Supplemental Appropriations Act of 1993 to provide $207.5 million in additional aid for the hurricane disaster areas of Miami/South Dade, Hawaii, Louisiana, and Guam. Passed a $6.3 billion aid package for Midwestern flood relief. ECONOMY So far this year, the economy has added - on average - more than 152,000 non-farm payroll jobs a month. That's nearly twice the 1992 rate. In the first eight months of the Clinton Administration, 1,067,000 new private non-farm jobs have been created. That compares with 1,002,000 jobs created over the entire four years of the Bush Administration. 4 September unemployment figures remained at 6.7%, the lowest rate in 26 months. October mortgage rates were at a 21-year low. New single-family home sales jumped 20.8% in September, the highest level in seven years. Since January, housing starts have climbed from 1.17 million to 1.35 million (annual rates) in September, the highest level in more than three years. In September, domestic auto sales were up 4.3 percent on a year-over-year basis, compared with a growth rate of 2.3 percent in 1992. Interest rates have fallen sharply. Since January, the rate on 30-year mortgages has fallen by more than a percentage point to 6.86%. In September, sales of new single-family homes surged 20.8% in Sept to 766,000 seasonally adjusted annual rate, the highest rate since December 1986. EDUCATION Passed the Student Loan Reform Act of 1993 which will make college more affordable and save taxpayer money through direct Federal lending and income contingent loans. $.3 billion will be saved over the next five years and $2 billion a year will be saved thereafter. Introduced to Congress the "Goals 2000: Educate America Act," a comprehensive national education reform program. The bill has passed the House with a substantial bipartisan majority and is currently waiting to go to the floor in the Senate. Supported by the Governors, teachers, business groups and labor, the bill simulates reform in states based on world-class standards, local school flexibility through waivers, and a performance-based accountability system. $110 million is appropriated for FY 94 for this program. Expanded funding for a SAFE Schools initiative. Introduced the School-to-Work Act Opportunities Act, providing funding to states and communities to develop and implement training programs that have been developed with industry, that span high school and college, that engage students in on the job learning and that culminate in a portable nationally accepted certificate. The Act is currently awaiting floor action in the House and Senate. 5 Introduced the Improving America's Schools Act, the reauthorization of the $10 billion Elementary and Secondary Education Act and other programs. This Act focuses on providing opportunities to all students to meet challenging standards of performance, creates a new teacher professional development program, consolidates a variety of programs to create a new technical assistance system, combines the mission of safe and drug free schools into a single comprehensive and substantial program, and establishes a broad system of waivers, and new programs in technology and charter schools. Substantially increased funding for Head Start by $550 million, allowing 100,000 additional children to participate. Signed an Executive Order on Historically Black Colleges and Universities. Created the Institute for Public Policy to tap the talents of underrepresented minorities for the foreign service and private international volunteer organizations. Created the Faculty Development Fellowship Program to assist talented faculty from underrepresented groups obtain advance degrees and develop their careers. ENERGY Allocated, for the first time in history, more of the Department of Energy's budget toward environmental efforts than to defense projects. Extended moratorium on nuclear testing through at least September 1994. Established a "Clean Cities" program in which major cities, like Atlanta, Philadelphia and Washington, have pledged to increase their use of alternative fuel vehicles to reduce energy use and emissions of greenhouse gases. Convened economic development summit in Washington and Oregon to chart a course towards a more diversified post Cold-War economy. The summit focused on technology development and environmental protection involving the multi-billion dollar cleanup of the Hanford nuclear weapons plant. Convened a U.S./Russian Summit and reached agreement on developing a U.S.-Russian legislative and regulatory framework to encourage energy production and efficiency and the independent regulation of Russia's nuclear facilities. 6 ENVIRONMENT Issued executive order establishing the President's Council on Sustainable Development advise him on matters related to "economic growth that will benefit present and future generations without detrimentally affecting the resources or biological systems of the planet." Signed the Convention on Biological Diversity. Signed Forest Resources Conservation and Shortage Relief Amendments Act of 1993 banning the export overseas of unprocessed timber taken from state and federal lands. Announced the Administration's Wetlands package, calling for long-term protection and restoration of the Nation's wetlands. Began implementation of the Forest Conservation Plan, a balanced program aimed at strengthening the long-term economic and environmental health of the Pacific Northwest. Introduced the Climate Change Action Plan, designed to curb global warming by reducing the emission of carbon dioxide and other greenhouse gases to their 1990 levels. Announced new federal Grazing Fees to bring fees closer to market value and to improve the long term health of America's rangeland. Signed a number of Executive Orders to lead by example, and use the federal government's enormous purchasing power to drive markets for more environmental products while saving taxpayers' money: - Recycled paper and environmentally preferable goods for Federal purchases. - A Iternative-fuel vehicles. - Energy-efficient computers for all government uses. - Accelerated phase-out of ozone-depleting chemicals. - Pollution Prevention -- Federal facilities to cut toxic emissions 50% and report them under Right to Know laws. The EPA announced steps to reduce the amount of hazardous waste produced in the U.S. and is developing Superfind legislative reforms. Signed the Colorado Wilderness Act of 1993. Created the National Biological Survey at the Department of the Interior to focus on the status and trends of our national biological resources. 7 FOREIGN POLICY Brokered a historic Mideast peace agreement, the Declaration of Principles betw and the Palestinians, signed at the White House September 13. Sponsored Israeli-Jordanian agreement for bilateral negotiations. Established a U.S.-Israel-Jordan Economic Committee to coordinate economic development and integration in support of Middle East peace and mobilized $2 billion in pledges at the Washington Conference in Support of Middle East Peace. Led the international effort to preserve Russian democracy by public and unwavering support of President Yeltsin, obtaining a historic $2.5 billion U.S. assistance package, mobilizing a multi-billion dollar G-7 economic support package, and ensuring steady Western political and economic backing for Russian reform. Initiated the Gore-Chernomyrdin Commission, a forum for expanding U.S.-Russian cooperation in energy, space, defense conversion and other areas. Obtained commitments from Kazakhstan and Belarus to accede to the Nuclear Non- Proliferation Treaty. Led U.S. forces in a successful military strike against Iraq's major intelligence facility in response to the Iraqi government's plot to assassinate President Bush. Reached agreement at Tokyo Economic Summit on G-7 policies to restore growth and job creation markets. Brought the Cambodian Peace Process to a successful conclusion with the holding of elections, drafting of a constitution and installation of a coalition government. Led the allied effort to promote peace negotiations in Bosnia and enhance the threat to Serbian aggression by negotiating NATO decisions to enforce the no-fly zone over Bosnia, to undertake air strikes if the siege of Sarajevo continues, and to provide close air support to UNPROFOR forces in Bosnia Encouraged South Africa's transition to democracy, which will culminate in one- person/one-vote elections scheduled for April 27, 1994, through diplomacy and $20 million in election assistance. Overturned the "Mexico City" policy, which denied funding to international non- governmental organizations providing abortion counselling and services with non- U.S. funds, and resumed funding to the U.N. Population Fund. 8 HEALTH CARE Delivered to Congress the President's Health Security Act of 1993, a comprehensive pla: reform the nation's health care system to ensure that every American has access to good, affordable health care. The Health Security Act of 1993 guarantees these six principles: Security of guaranteed, comprehensive benefits Health care costs that are under control Improved quality of care Increased choices for consumers Less paperwork and a simpler system Responsibility from everyone Revoked the Reagan/Bush restrictions on abortion counseling ("the gag rule"), fetal-tissue research, abortions in military hospitals, "Mexico City" policy and RU-486 imports. Signed the Family and Medical Leave Act, providing for up to 12 weeks of unpaid job- protected leave for family members who need time off in order to care for a newborn or newly adopted child, a seriously ill child, parent or spouse, or to recover from their own disabling illness. Signed into law the National Institutes of Health Revitalization Act, removing the federal ban on fetal-tissue transplants and research, establishing the Offices of Women's Health Research, Minority Health Research and Alternative Medicine, and consolidating the direction and the budget of AIDS research. Reorganized the Health Care Financing Administration and streamlined procedures, making the delivery of Medicaid and Medicare services more accessible and more user-friendly. Signed a comprehensive child immunization plan which will provide vaccines, free of charge, to Medicaid eligible children, the uninsured and underinsured. Gained an increase of 50% in the FY94 immunization budget as compared with the FY93 enacted level. Instituted the Medicare Hospital Inpatient Prospective Payment System policies and rates for Fiscal Year 1994 which will generate $1.16 billion in savings. Issued memorandum to heads of executive departments and agencies instructing them to implement ongoing HIV/AIDS education and prevention programs and to develop nondiscriminatory workplace policies for employees with HIV/AIDS. 9 HOUSING Reformulated mission and priorities of HUD, making a commitment to community, family support, economic lift, individual rights and responsibilities, and reduction of spatial separation by race and income. Submitted the Housing and Community Development Act of 1993 to address the explosive growth of FHA's multifamily inventory and to remove statutory impediments from HUD's programs. Granted $300 million to the Urban Revitalization Demonstration Program (HOPE VI) to revitalize the most severely distressed public housing developments in the nation. Established partnership with the AFL-CIO, Fannie-Mae and Freddie-Mac to create a housing investment trust fund that will provide an additional $600 million to rebuild and create affordable housing. Created new partnerships with nonprofit organizations, the private sector, foundations, and labor leaders to construct low-income housing, emergency shelters, and to invest in the National Community Development Initiative. Announced funding of $109.6 million for economic development activities and to finance the production of low-income rental housing in California. Extended low-income housing credit permanently, increasing opportunities for affordable housing development by the private sector. Established the Innovative Homeless Initiative, allowing the Administration to undertake comprehensive strategies with cities committed to ensuring that homeless persons receive the full range of services they need to transition out of shelters and move into independent living. Proposed the "D.C. Initiative," which will create a comprehensive program for dealing with homelessness in the District of Columbia. IMMIGRATION Delivered to Congress the Expedited Exclusion and Alien Smuggling Enhanced Penalties Act of 1993, a bold new plan to fight illegal immigration which calls for stiffer penalties for alien smuggling and to implement expedited exclusion procedures to curtail abuse of political asylum laws at airports and ports of entry. Designed a strategy for enhanced border enforcement resulting in Congressional approval of $45 million to hire and train up to 600 additional Border Patrol officers. Established an in-country refugee processing center in Port au Prince, Haiti. 10 LABOR Introduced the School-to-Work Act Opportunities Act, providing funding to states and communities to develop and implement training programs and establish national standards for such programs. Passed the Emergency Supplemental Appropriations Act of 1993, providing $4 billion in emergency unemployment compensation to approximately 1.9 million unemployed American workers. Rescinded Ronald Reagan's Executive Order prohibiting the rehiring of fired PATCO air- traffic controllers. NATIONAL SERVICE Signed into law a National Service Plan enabling 100,000 Americans to serve their communities and our country while earning credit toward higher education. These Americorps participants will directly address our nation's critical education, human, public safety and environmental needs. POLITICAL REFORM Passed a lobbying disclosure bill in the Senate designed to provide full accounting of lobbyist working to influence government policy. The bill creates a new Office of Lobbying Registration and Public Disclosure and requires anyone hired to lobby the Executive branch or Congress to register. Cut the lobbying expense deduction for corporations from this year's budget. Broke gridlock and passed a campaign finance reform bill in the Senate which limits the influence of special interests in campaigns. Signed the Hatch Act legislation. Signed the Federal Employees Political Activities Act of 1993. 11 REINVENTING GOVERNMENT Delivered the report of the Vice President's National Performance Review (NPR), an intensive six-month study on how to make the federal government work better and cost less. The recommendations will, if enacted, save $108 billion over five years. HUD has identified 75 rules and statutes that impede housing and redevelopment. The IRS has committed to mailing refunds within 40 days for paper returns, or 14 days for electronic returns. NASA is implementing significant procurement reforms. Agencies have created about 100 reinvention labs to test out the concepts of reinventing government. The labs are a test bed for agency innovations, deregulation, streamlining, and other NPR proposals. The GSA is simplifying procurement and reducing costs for everything from office supplies to vehicle leases. State has already issued its own NPR report. Agriculture has moved to close surplus field offices. Signed into law the Government Performance and Results Act of 1993, requiring agencies to develop strategic plans and performance measures, thereby improving Federal program effectiveness and public accountability. Ordered agencies to reduce by 50% their internal regulations within three years. Created the National Partnership Council to involve government employees and their union representatives in achieving the goals of the NPR. Ordered agencies to reduce staff by 252,000 over the next five years. Ordered the abolition of unnecessary Federal advisory boards, commissions and committees for a savings of $150 million per year. Reformed the regulatory review process signed a Presidential Executive Order prohibiting the promulgation of unfunded mandates for state and local governments. Reduced Federal perks, including the use of executive dining rooms, Government aircraft and Government vehicles. Ordered, within minutes of taking office, the strictest Executive appointee ethics code in history. 12 SMALL BUSINESS Signed into law the Small Business Guaranteed Credit Enhancement Act of 1993, significantly increasing the availability of loans that can be guaranteed by the Small Business Administration. Passed a targeted capital gains tax cut for investments in small businesses held over 5 years; increased by 75% the investment that small businesses will be able to expense; and retroactively extended the 25% deduction for health insurance premiums for the self- employed. Initiated aggressive action to alleviate the credit crunch. Issued over 10 regulatory initiatives to reduce regulatory burdens on banks, thereby creating greater access to credit for many small and medium-sized businesses. TECHNOLOGY Announced a comprehensive technology initiative, Technology for America's Economic Growth. Provided incentives for private-sector research and development and new business formation by extending the Research and Experimentation Tax Credit and reducing the capital gains tax for investments in small business. Developed an action plan for the National Information Infrastructure and ordered the transfer of 200 MHz of spectrum from the Federal Government to the private sector to jump-start new wireless technologies. Signed National Cooperative Production Amendments Act providing anti-trust relief for joint manufacturing. Unveiled joint effort between the government and U.S. automakers to develop within 10 years an automobile that is three times as fuel efficient as existing vehicles. Announced support for continued funding for a scaled-back version of Space Station Freedom. 13 TRADE Negotiated with Canadian and Mexican trade ministers tough NAFTA side agreements import surges, labor, worker safety and environmental standards. The Administration and the Government of Mexico also announced final agreement on the creation of two organizations, one the Border Environment Cooperation Commission (BECC), the other the North American Development Bank (NAD Bank). Achieved a GATT Uruguay Round break-through on market access. Leaders of G-7 nations in Tokyo agreed on developing a comprehensive market access package to reduce tariffs on a wide variety of products. Finalized agreement achieving the long-sought objective of gaining access to EC market for EC government-procured heavy equipment from non-EC vendors. Signed into law HR 1876, which extends legislative "fast track" procedures to conclude the Uruguay Round of multilateral trade talks. Negotiated a Framework Agreement with Japan designed to open markets for U.S. firms, serve as a mechanism for resolving commercial issues in U.S.-Japanese relations, and provide a forum for cooperation on environmental protection, technological development, population, and AIDS. Administration efforts resulted in the Government of Japan's announcement that it would undertake an action plan to reform its long-standing discriminatory practices in the construction sector. Japan also agreed to move expeditiously on permitting entry of 1994 crop year apples from the U.S. Took steps toward expanding market access in China and conditioned further extension of China's Most Favored Nation status on improvements in human rights, expanded trade, and weapons non-proliferation. Developed a National Export Strategy, including the elimination of export controls on computers and telecommunications that will enable U.S. exportation of up to $35 billion in high-tech exports. Held the first meeting of the U.S.-South Pacific Joint Commercial Commission aimed at enhancing our relations and expanding trade with these island nations. TRANSPORTATION Reconvened the National Commission to Ensure a Strong Competitive Airline Industry and recommended steps to revive the nation's airline industry. Mandated that airbags be installed in all passenger cars, light trucks and vans. 14 Announced $147 million program to support $3 billion in loan guarantees to boost the U.S. shipbuilding industry. URBAN DEVELOPMENT Delivered the Housing and Community Development Act of 1993 to Congress, significantly changing rent policy for public housing tenants and making home ownership easier for low income Americans. Transmitted to Congress the Community Development Banking and Financial Institutions Act of 1993, which will fund the creation of community development financial institutions. Created nine Economic Empowerment Zones and 95 Enterprise Communities. The plan gives local communities the incentives and regulatory flexibility to work with the private sector in developing comprehensive economic development strategies. Through enforcement of the Community Reinvestment Act, encouraged banks to reinvest and loan money in targeted neighborhoods. Established the Community Enterprise Board to assist in the successful implementation of the Administration's empowerment zone legislation. WELFARE REFORM Expanded the Earned Income Tax Credit by $21 billion over five years to lift working families out of poverty with incentives to work. When fully implemented, over 20 million households with incomes of $27,000 or less dollars will benefit. By 1996, families earning the minimum wage could increase their wage rates by 38 percent. Fully funded the special supplemental food program for Women, Infants and Children so that, by the end of FY 1996, all eligible children between 1 and 4 are served. WIC funding was increased $350 million from FY93 to FY94, increasing average participation by 300,000 families. Enacted key provisions of the Mickey Leland Act, broadening food stamp assistance for poor families with children, and increased food stamp funding by $2.5 billion over five years. Achieved $1 billion in funding for the Family Preservation and Support Initiative over fiver years which would help prevent child abuse and help parents learn the skills and tools they need to raise their children. 15 NATIONAL SECURITY COUNCIL WASHINGTON DC 20506 November 4, 1993 MEMORANDUM TO MARK GEARAN FROM: NANCY SODERBERG/V SUBJ: National Security Themes for President's Interview with "Meet the Press" Attached are the themes you requested on national security issues for the President's interview with "Meet the Press". As requested, we will provide Q's and A's by COB tomorrow. Tony was out sick and thus has not reviewed, although Sandy has. Tony may have some changes on Friday. National Security Themes Even as we focus on the more dramatic and immediate foreign policy issues of the past month, we cannot lose sight of the real progress we're making on the issues that will have the most important and long-lasting impact on our security and prosperity. We have raised the issue of stimulating world growth to the top of the global agenda, helping to create American jobs and exports. O We've pursued this through our work on NAFTA and the Uruguay Round and coordinating economic policies with our G-7 allies. We have also focused unprecedented U.S. attention to our economic relations with Asia, one of the most dynamic and rapidly-growing regions of the world. O We have negotiated a new economic framework for working with a change-oriented government in Japan, achieving a commitment for market opening that will yield new jobs and new exports. We proposed building up regional institutions, an idea I will highlight when I meet two weeks from now with the fifteen leaders at the Asia Pacific Economic Cooperation meeting in Seattle, leaders who represent countries accounting for half of the world's GDP. Our steadfast support for democratic and market reform in Russia has helped President Yeltsin overcome numerous threats from reactionary forces. A successful transition in Russia will allow us to continue to cut defense spending, open markets of hundreds of millions of consumers and eliminate for good the destructive Cold War competition. Secretary Christopher's work to reinvigorate the Middle East peace talks created an environment that allowed the momentous achievements over the past months, including the Israeli-PLO peace signing at the White House. On defense issues, Secretary Aspin's "bottom up" review has given us a road-map for restructuring the military to face the challenges of the post Cold War world, ensuring continued security while allowing us to make even greater defense cuts. We've also unveiled a proposal embraced by our allies, Russia and others to offer former Soviet republics and East European nations closer ties with NATO, helping to adapt NATO to the post-Cold War world and promote transatlantio security. We've also provided new global impetus to efforts to protect the global environment and to prevent proliferation of weapons of mass destruction. We've also announced new policies to stem the flow illegal immigration and to combat international dri trafficking. On the issues that confronted us when we came to office, there have been some difficult times over the past weeks, but we are making progress. In Somalia, we are seeing results from the policy I announced on October 7. African leaders are promoting political reconciliation; attacks on U.S. and U.N. forces have ceased; the Rangers have been brought home; and a commission of inquiry is being set up to hold those responsible for the attack of U.N. peacekeepers accountable for their actions. O We cannot rebuild Somalia - - the Somali people must do that for themselves - - but our commitment to complete our mission there in a disciplined manner is giving them a chance to avoid a return to anarchy and starvation that resulted in the loss of 350,000 lives before our engagement began last December. In Haiti, we have tough international sanctions in place and diplomatic discussions underway in an effort to restore democracy and President Aristide to that country in line with the Governor's Island process. The anti-democratic forces must understand they cannot indefinitely thwart the will and commitment of the Haitian people and the international community. O We have strong national interests in helping foster democracy and human rights on our doorsteps in the Caribbean, protecting 1000 Americans in Haiti and preventing a recurrence of mass exodus of Haitians at great risk to themselves and great disruption to us. Lessons of the Past Month We've faced some tough problems over the past month that have commanded Americans' attention. The situations in Somalia, Haiti and Bosnia are not unique: in the uncharted ground after the end of the Cold War, we're likely to face more and more instances in which societies are tearing themselves apart. O We cannot turn our backs on all such conflicts: some, such as Haiti, have broad implications for us. But our primary focus must and will remain on the challenges of primary and lasting importance: Russia, trade, Asia, NATO, Japan, NAFTA, military readiness, combatting narcotics, non-proliferation. We intend to work more closely with Congress and the American people to communicate our priorities and to build consensus regarding when and how we get involved in humanitarian and peacekeeping operations that warrant our participation. O At the United Nations, I laid out conditions and questions we must consider before we become involved in these situations: what are our national interests; what are our specific goals; can our involvement really make a difference; what is the exit strategy. We welcome the emergence of a new bipartisan spirit of consultation and cooperation on these issues as well as Congressional reaffirmation of the President's authority to conduct foreign policy. MEMORANDUM FOR THE PRESIDENT FROM: Mark Gearan DATE: 6 November 1993 Inside this miscellaneous section you find the following briefing materials in order: -FEMA issues -Political Reform -National Service THE WHITE HOUSE WASHINGTON November 5, 1993 MEMORANDUM FOR MARK GEARAN FROM: CHRISTINE A. VARNEY CAN Secretary to the Cabinet SUBJECT: President's Briefing on FEMA Issues The fires have died down and are currently contained. Unless there is another outbreak of fires, I don't anticipate questions on FEMA or the fires for the President on Sunday. If anything comes up, it may be along the lines of an interview Secretary Babbitt did with "Good Morning America". A transcript of that interview is attached. In that interview, Secretary Babbitt stated that we may have to look into the "process of building into these deep canyons whether or not we should do more prescribed burning more setbacks stronger laws requiring brush clearance". These remarks created some controversy in California. I think it is fair to say that the Secretary only stated that we will look at those rules. He did not indicate in any sense that the current rules are inadequate or that they would be changed. The President is very well versed on the Federal efforts on the fire. To refresh him, you may want to go over the following Federal resources that were committed to Southern California during the firestorms: Federal Fire Engines - 97 Dozers 6 Federal Firefighting Crews - 106 (approximately 20 members per crew) Helicopters - 22 Air Tankers 29 Lead Planes - 14 Total Federal Personnel Committed to Firefighting in Southern California - 3,500 During the first phase of the fires, the President declared Los Angeles, Ventura, San Diego, Riverside and Orange counties as major disaster areas. At the President's instruction, FEMA released $15 million to the California State Emergency Services to help pay for the overtime and other costs associated with the California State Department of Forestry's firefighting efforts. The coverage in California of the Federal firefighting effort has been quite positive. 11/05/93 12:06 003 ABC Good Morning America 11/3/93 - California Fires Secretary Bruce Babbitt/Joan Lunden Lunden: With 30,000 acres burned since yesterday on top of the 175,000 acres last week, California will be reeling from the effects of this season's fire long after the last embers die out. Many Californians will be turning to government officials for help. The government's point man is Bruce Babbitt, Secretary of the Interior and he joins us this morning from Washington. Good morning, Mr. Secretary. Babbitt: Good morning. Lunden: What kind of damage are you anticipating from these latest fires? Babbitt: Well I think that another couple hundred structures as of this point and that's surely another couple hundred million perhaps 500 million dollars worth of damage. Lunden: How can the government, the Federal government best help the state of California? Babbitt: Well, we're responding to all the requests. We kept about a 100 crews on the ground over the weekend. I was out these and we decided to keep a lot of the resources right there anticipating this might happen. We've got a couple thousand people out there now, about 15/20 additional aircraft and we've got more reserves out of the National Fire Center, if necessary. Lunden: We've heard an awful lot about land management. Should the Federal role, the Federal Government play a different role perhaps a bigger role in terms of land management to help control these fires and prevent them? Babbitt: Well, I think that once this is all over, we'll really have to do some soul-searching about the process of building into these deep canyons with all the brush, and start examining zoning ordinances and Federal policies and look at whether or not we should do more prescribed burning and whether there should be more set-back requirements, whether there ought to be stronger laws requiring brush clearance as a condition of building up in these canyons. It's a tough problem and we obviously have to figure out a better way to manage it. Lunden: Not only brush clearance but perhaps even the building materials that people are allowed to use whenever they build in an area like this? Babbitt: Well in fairness, California has moved toward building codes. Shake shingles, for example, have been outlawed in most of these areas but I think we probably do more and this certainly underlines the need to have a careful look at it. 004 11/05/93 12:06 Lunden: We're of course skipping a couple of places here-we're going to building again. Just right now in terms of cleaning up? Babbitt: We'll obviously we have a big mess on our hands and I'll tell you the biggest danger is when is starts raining. Ironically when the rains come this winter, we'll have mud slides. These fires have burned away all the vegetation that holds those incredibly steep hillsides into place so we're going to have to start clearing away the check dams looking at retention structures and attempt to prevent a second disaster which will be flooding from all those exposed sides. Lunden: Thank you Mr. Secretary for joining us. 11/05/93 12:07 005 TO: The President FROM: Interior Dept. Communications DATE: November 5, 1993 RE: California Fires & Sensitive Environmental Issues 1. Babbitt's "Soul Searching" Quote In an ABC interview, Secretary Babbitt said Californians must do some "soul searching" about their lives in and near such fire hazards. He clarified by saying they should consider tougher standards for clearing brush from residential areas, greater use of fire retardant building materials, etc. The LA Times said he was on the mark -- - but that his timing was impolitic. This is a sensitive area, and one you should avoid at this time. Suggested remarks: There clearly are steps we can take to provide greater safety but those steps are down the road. Right now, that's not our primary concern. Right now, our concerns are to get through the rest of this fire season, to prepare for the coming winter rains, and to help in the recovery process for those families that have been devastated by this fire. 2. Destroyed Gnatcatcher Habitat: 15% of the endangered California gnatcatcher's habitat was decimated. Again, we suggest you defer response until later. Suggested remarks: We take our responsibilities for environmental protection very seriously. But right now there are families without homes and there is a continued threat of fires -- and that is our primary focus. We'll look at the other issues down the road, once we've gotten through this immediate crisis. [If reporters persist] I realize this is a serious issue. But frankly, I think it's disrespectful to the human victims to begin talking about these other issues right now. We do take this issue seriously, and we will address it. But we also know that there are families whose lives have been horribly disrupted, and that is our current focus. WHITE HOUSE PRESS GUIDANCE - - 11:00 A.M. Friday, November 5, 1993 Over-All Clinton Foreign Policy Record Even as we focus on the more immediate and dramatic foreign policy issues of the past month, we cannot lose sight of the progress that we're making on the issues that will have the most important and long-lasting impact on our security and prosperity. We've raised the issue of stimulating world growth to the top of the global agenda, helping to create American jobs and exports. O We've pursued this through our work on NAFTA and the Uruguay Round, opening Japanese markets through our framework talks, coordinating economic policies with our G-7 allies, and meeting later this month with the 15 leaders of the Asian Pacific Economic Council whose economies make up half the world's GNP. Our steadfast support for democratic and market reform in Russia has helped President Yeltsin overcome numerous threats from reactionary forces. o A successful transition in Russia will allow us to continue to cut defense spending, open markets of hundreds of millions of consumers and eliminate for good the destructive Cold War competition. Secretary Christopher's work to reinvigorate the Middle East peace talks created an environment that allowed the momentous achievements over the past months, including the Israeli-PLO peace signing at the White House. On defense issues, Secretary Aspin's "bottom up" review has given us a road-map for restructuring the military to face the challenges of the post Cold War world, ensuring continued security while allowing us to make even greater defense cuts. o We've also unveiled a proposal -- embraced by our allies, Russia and others to offer former Soviet republics and East European nations closer ties with NATO, helping to adapt NATO to the post-Cold War world and promote transatlantic security. We've provided new global impetus to efforts to protect the global environment and to prevent proliferation of weapons of mass destruction. We've also announced new policies to stem the flow of illegal immigration and combat international drug trafficking. On the issues that confronted us when we came to office, there have been some difficult times over the past six weeks, but we are making progress. In Somalia, we are already seeing results from the policy I announced on October 7. African leaders are promoting political reconciliation; attacks on U.S. and U.N. forces have ceased; the Rangers have been brought home; and a commission of inquiry is being set up to hold those responsible for the attack of U.N. peacekeepers accountable for their actions. O We cannot rebuild Somalia the Somali people must do that for themselves but our commitment to complete our mission there in a disciplined manner is giving them a chance to avoid a return to anarchy and starvation that resulted in the loss of 350,000 lives before our engagement began last December. In Haiti, we have tough international sanctions in place and diplomatic discussions underway in an effort to restore democracy and President Aristide to that country in line with the Governor's Island process. The anti-democratic forces must understand they cannot indefinitely thwart the will and commitment of the Haitian people and the international community. o We have strong national interests in helping foster democracy and human rights on our doorsteps in the Caribbean, protecting 1000 Americans in Haiti and preventing a recurrence of mass exodus of Haitians at great risk to themselves and great disruption to us. Lessons of the Past Month We've faced some tough problems over the past month that have captured Americans' attention. The situations in Somalia, Haiti and Bosnia are not unique: in the uncharted ground after the end of the Cold War, we're likely to face more and more instances in which societies are tearing themselves apart. O We cannot turn our backs on all such conflicts some, such as Haiti, have broad implications for us But our main focus must and will remain on the challenges of primary and lasting importance: Russia, trade, Asia, NATO, Japan, NAFTA, military readiness, combatting narcotics, non-proliferation. We intend to work more closely with Congress and the American people to communicate our priorities and to build consensus regarding when and how we get involved in humanitarian and peacekeeping operations that warrant our participation. O At the United Nations, the President laid out conditions and questions we must consider before we become involved in these situations: what are our national interests; what are our specific goals; can our involvement really make a difference; what is the exit strategy. O We welcome the emergence of a new bipartisan spirit of consultation and cooperation on these issues as well as Congressional reaffirmation of the President's authority to conduct foreign policy. MEMORANDUM FOR THE PRESIDENT FROM: MICHAEL WALDMAN Special Assistant to the President for Policy Coordination SUBJECT: GOALS ON POLITICAL REFORM I. GENERAL GOAL As the elections Tuesday showed, the public still harbors an anti-incumbent anger that crosses political lines and reflects a desire for fundamental change. Political reform is an essential aspect of this demand. Thus far, however, the administration has supported political reform efforts, but has not trumpeted its support. A cynical press has charged the political establishment with giving lip service to reform but putting it on the back burner. The principal goal on political reform issues, then, is to demonstrate your personal commitment to political reform. What you say about political reform is less important than how you say it -- impassioned and impatient, rather than "more in sorrow than in anger. " To do this, and to make news, you should do two things: ? Call for the House to pass campaign finance reform legislation this year (before the end of the session). (This won't put the House leadership in too much of a spot, since this is their goal, too. But most people don't realize it's happening this fast.) ? Stress that you hope that they will not weaken the legislation from what you proposed/negotiated in the Spring. (There is significant sentiment to weaken the PAC and soft money language.) II. BACKGROUND Campaign reform The House leadership is circulating a version of campaign finance reform that is modeled after our proposal, but which contains significant loopholes and weakening provision. In particular, a) the PAC provision allows more PAC money in than we had agreed to, and b) the soft money provision is basically gutted. Common Cause is furiously negotiating with the leadership on these provisions. You should not be expected to express familiarity with the details of the legislation as it is being drafted. Lobby disclosure A House Judiciary Subcommittee (chaired by Rep. John Bryant) was scheduled to mark up the lobby disclosure bill last month, including the gift-disclosure provisions you have previously publicly supported, but the session was canceled at the last minute. Speaker Foley -- responding to pressure from Newt Gingrich -- said he was appointing a bipartisan task force to study how to limit gifts to lawmakers. If asked, you should simply express support for lobby disclosure, including disclosure of gifts from lobbyists. POLITICAL REFORM QUESTIONS AND ANSWERS QUESTION: Haven't you merely given lip service to campaign finance reform and political reform? Here it is, the end of the year, and Congress still hasn't passed a bill that is virtually identical to the one they passed last year. ANSWER: I am firmly and deeply committed to political reform. We will never provide economic renewal and health security if we don't reform our political system. We proposed a strong, comprehensive bill that limits spending and curbs the role of special interests and lobbyists. It was endorsed as real reform by Common Cause and every other reform group. - We imposed the toughest ethics rules ever on any administration. We barred officials from lobbying their agency for five years after leaving office. - We fought for and won passage of campaign finance reform legislation by breaking a Republican filibuster in the Senate. - In our budget bill, we ended the tax deductibility of lobbying. - Lobby disclosure also passed the Senate. Now we are awaiting House action on campaign finance reform. The House leadership is rounding up the votes for our plan. I strongly urge the House to act on campaign finance reform before the end of the year. This issue cannot wait any longer. The voters have made it clear that they want change, and they regard this as an essential component of that change. QUESTION: Last year during the campaign you said that you wanted campaign finance reform legislation to be stronger than last year's bill. Instead, this year the bill is getting weaker. The House leadership has proposed a bill that allows candidates to receive significantly more PAC money than your proposal, and that does not ban the use of soft money. Common Cause says that it is not acceptable reform. Will you sign a weakened bill? ANSWER: I am not familiar with the specifics of the House draft, so I cannot comment specifically on it -- but I will say this. In May we proposed legislation that is real reform, and which also has a good chance of passing. I certainly don't think it should be watered down. If we are going to enact political reform, we have an obligation to be serious, and to pass a plan that really will limit PACs, curb the special interests, and ban the corrupting soft money from the system. I know that the Democratic leadership is working hard to pull a good bill together, and I hope that the House passes a strong plan. I especially hope that the conference committee that merces the two bills produces a plan with teeth. I won't to support legislation that's not real reform. THE WHITE HOUSE WASHINGTON November 4, 1993 MEMORANDUM TO MARK GEARAN FROM: RICK ALLEN SUBJECT: MEET THE PRESS Eli indicated that you wanted suggestions for the President's appearance on Meet the Press this weekend. We would assume that the desired impression would be of firm leadership, moving the country forward. Legislative victories (particularly for Meet the Press' audience) provide the most unequivocal demonstrations of these traits, and in that context, passage of the national service legislation is an early landmark. The President has a rhetorical progression he normally uses on this subject: the importance of national service to Americans during the 1992 campaign; the bipartisan and speedy passage of the bill; and the prospect of tens of thousands (and ultimately hundreds of thousands) of Americans of all ages helping to change their communities. The themes of responsibility, opportunity and community are particularly apt with this subject. Additionally, national service participants have been vitally involved in disaster relief (on the front-lines of Florida's hurricanes, the Midwest's floods, and southern California's fires), and will play highly cost-effective and visible roles in the Administration's solutions to the crises of crime and health care. We would be happy to expand on any of these matters, and to provide examples, if you would desire. Eli, Diana Aldridge and I can be reached at 606-5000. MEMORANDUM To: Distribution Fr: Mark Gearan Re: Meet the Press POTUS Preparation November 3, 1993 As you know, President Clinton will be the guest on Meet the Press this Sunday, November 7th. Tim Russert will moderate the show with Tom Brokaw from the Oval Office. In preparation for the program, I am asking you to provide two documents: First, by close of business Thursday, please submit a memo not to exceed two pages which contains your suggestions to the President on the themes and news ledes he should provide in answers to questions on topics in your area. Unlike a Q+A memo, this involves what you want the President to stress. Second, by close of business Friday, please submit a concise document suggesting answers to anticipated questions in your area. If you have any suggestions, please do not hesitate to contact me. I look forward to receiving your materials. The President will be briefed for the program during the weekend, so it is vital that we meet these deadlines. Many thanks for your cooperation. cc: Nancy Soderberg/National Security Rahm Emanuel/NAFTA Jeff Eller/Health Care Bruce Reed/Crime, Violence, Domestic Ann Walker/Research Jonathan Prince/Planning Christine Varney/FEMA Gene Sperling/Economy THE WHITE HOUSE WASHINGTON MEMORANDUM TO: Mark Gearan FROM: Paul Carey PC Date: November 5, 1993 RE: MEET THE PRESS Two items that I want to pass along regarding the President's appearance on Meet The Press this weekend: 1) For what it's worth--- I spoke to someone this afternoon who spoke to Tim Russert about the questions he intends to ask the President. He is a very reliable source and wouldn't tell me much, but virtually guaranteed that Tim will ask about illegitimacy rates and family breakdown and it's effect on crime, etc. A stong answer on this would go a long way. Tim is in love with the phrase "predatory males" that Moynihan coined on his show, though it may be too strong for the President, nevertheless the "Defining Deviancy Down" themes are popular and the President has referred to this before (crime speech in Tampa) This may be all farly obvious because it's a theme Russert's worked on with Moynihan, Reno, and William Raspberry when they were on. He also indicated that he intends to focus on issues much more than inside baseball, (Tuesday's elections are almost certain to come up, though). 2) Enclosed are two photographs Tim gave me that he was hoping to have the President sign. It would be a nice touch and might throw Tim off balance if the President were to give them to him before the show. Mark- I I more "Meet the Press" tid-bit - at roughly the some time Sunday, Gl. will be appearing at Tim Russert's alma mater (Jonn Carroll university in Ohio) to Keynote a Major conference or national service. (Russert has talked w/ Eli about it & been very helpful.) - Might be a hook if the President wants to talk about service. Rick Allen ? 4 SPOILLING HEALTH NAF7A CLINTON LIBRARY PHOTOCOPY Note to Mark Gearan From Cathy Zoi RE: Ideas for Meet the Press message Attached are some general talking points/notes I have used recently to provide a lead-in to speeches I have given on the Administration's environmental agenda that have played very well. In general, people seem delighted to be reminded of the themes they heard in the campaign, and even more delighted to understand how those themes are translating into real activities. Our themes resonate and inspire! Perhaps this is useful for the Meet the Press message -- at any rate, you now have an idea of the song we sing as we segue into our "environmental stump speech." What's Needed: To remind America of the overarching principles that made them confident that Bill Clinton was the guy to put in office. To tell America that those principles weren't just about campaigning -- those are the principles that are now guiding this Administration's agenda. When acted on, these principles demonstrate VISION, COURAGE AND LEADERSHIP. Some guiding principles of the Clinton Administration: "make change our friend"; replace fear with hope position the U.S. for a world economy/global marketplace reinvent government share responsibility for problem solving -- government helps, citizens help, businesses help not shrink from difficult problems Our big issues so far: o are consistent with these guiding principles o demonstrate Bill Clinton's courage, vision and leadership. NAFTA Health care reform National Performance Review National Service Budget o deficit reduction o base closures Fighting Crime (and so on...) Environment In a nutshell, what these principles translate into is: Environment and Economy -- Reinventing the way environmental business gets done. Creating jobs, enhancing security, investing in our children's future, facing tomorrow with hope Environmental Initiatives o the forest plan o new wetlands policy o biodiversity treaty o establishment of the PCSD o executive orders: such as recycling & using made in USA energy-efficent computers -- the most efficient in the world! o the climate plan SLIVE! A TRIBUTE To FELLINI: THE CLINTON WHITE HOUSE ; B' fing Record of Adm 1. 1 FRi ÷ Overview Competence - Thematics - - feelings Tany Rubin Lake - disapplets Sat Health Care (Mandy) Q+A Munder Boal Sun Refeesh + Newsppr Style 57 Governance -give elites sause of progress -doing - a lot - -doen + activits -fryig- to D things 3 Security acquired - itequated Wew -Chintan Visia -diverse - subjects Stan Mid Sept annuat of Nafta -shows he believes - more prosperous Aneica Engage in jobs/economic argument - - show he believes it will create Salf depracating huner on screwi yps / energizar louncy football THE WHITE HOUSE WASHINGTON November 4, 1993 MEMORANDUM TO MARK GEARAN FROM: RICK ALLEN SUBJECT: MEET THE PRESS Eli indicated that you wanted suggestions for the President's appearance on Meet the Press this weekend. We would assume that the desired impression would be of firm leadership, moving the country forward. Legislative victories (particularly for Meet the Press' audience) provide the most unequivocal demonstrations of these traits, and in that context, passage of the national service legislation is an early landmark. The President has a rhetorical progression he normally uses on this subject: the importance of national service to Americans during the 1992 campaign; the bipartisan and speedy passage of the bill; and the prospect of tens of thousands (and ultimately hundreds of thousands) of Americans of all ages helping to change their communities. The themes of responsibility, opportunity and community are particularly apt with this subject. Additionally, national service participants have been vitally involved in disaster relief (on the front-lines of Florida's hurricanes, the Midwest's floods, and southern California's fires), and will play highly cost-effective and visible roles in the Administration's solutions to the crises of crime and health care. We would be happy to expand on any of these matters, and to provide examples, if you would desire. Eli, Diana Aldridge and I can be reached at 606-5000. November 4, 1993 MEMORANDUM FOR MARK GEARAN FROM: BRUCE REED SUBJECT: MEET THE PRESS: 1) Crime & Violence 2) Welfare Reform Here are the key points on crime, violence, and welfare reform: CRIME: The President will be asked about the House and Senate consideration of the crime and Brady bills. One clear message of Tuesday's elections is that Americans fear for their personal security. He can make news on crime by embracing the bipartisan Senate agreement on a Crime Trust Fund that will make good on his promise to put 100,000 cops on the street by cutting 252,000 bureaucrats. We'll be discussing this with him on Friday morning. On guns, he can point to likely Senate passage of the Kohl bill to ban handguns for minors which has the NRA's support -- and the growing momentum for the Brady bill, which should pass the House next weck. He undoubtedly will be asked about youth violence as well. Hc should talk about the boot camps and juvenile detention measures in the Senate bill. If asked about drugs, he should talk about drug treatment for criminal addicts, which is also addressed in the crime bill. WELFARE REFORM: There's an outside chance he may be asked about the House Republican welfare reform plan, which could be released as carly as next weck. We don't want a headline here. Our response should be that we like parts of the GOP bill, we're not sure about other parts (it doesn't do enough on child support enforcement and it caps work incentives like the EITC), but we want to work with them. Hc can stress the waivers his administration signed this week in Wisconsin and Georgia. THE WHITE HOUSE WASHINGTON November 5, 1993 MEMORANDUM FOR MARK GEARAN FROM: CLIFF SLOAN SUBJECT: Child Pornography Case Attached are four items that might be helpful in considering the child pornography case -- talking points, Q & A's, a summary of the case, and DOJ's letter to Biden on the case. Let me know if anything else -- or any revisions of this material -- would be helpful. Also, Bernie wanted me to let you know that I'll be available, as the representative of the Counsel's office, to address any issues that arise in the "Meet The Press" prep session. I could either attend the Oval Office session or be available for any questions, depending on your preference. TALKING POINTS RE: CHILD PORNOGRAPHY CASE * This Administration is strongly committed to fighting child pornography and protecting children against child abuse and exploitation. In fact, just this week, the Justice Department filed an appeal in the Supreme Court vigorously challenging a lower court decision that found an important part of the federal child pornography statute unconstitutional. * The Justice Department's brief in the other child pornography case did not say that Congress could not enact a different standard. It said only that the language of the statute and the legislative history required the conclusion that the lower court had applied the wrong standard. * I would support a statutory change to adopt the broader standard. [NOTE: Some officials at DOJ have privately stated that, in their view, there may be "serious constitutional questions" regarding the broader standard. Press accounts have also included statements to that effect by unnamed Justice Department officials. But DOJ's brief does not make this statement. Another possibility, if asked about a statutory change, is to say that discussion of a statutory change is premature while the matter is in the courts.] * The Justice Department's brief in the Knox case did not say that the defendant should go free. It said only that the case should be sent back to the lower courts to consider his conduct under the correct standard. And the only thing the Supreme Court did was send the case back to the lower courts for further consideration. * The Justice Department's brief strongly rejected many of the defendant's arguments which would have weakened the child pornography statute. * The Justice Department's position in the case will have no effect in the fight against child pornography. The prosecution in this case was unique -- there's never been another like it. * I am convinced that this Administration will have the best record of any Administration in history in fighting child exploitation and child abuse. Attorney General Janet Reno and FBI Director Louis Freeh are as tough and experienced as they come in fighting crime and protecting children. SUMMARY OF KNOX CASE 1. In 1991, Stephen Knox was charged with two counts of receiving and possessing videotapes in violation of the federal child pornography statute. That statute prohibits receipt or possession of visual depictions of "a minor engaging in sexually explicit conduct.' One definition of "sexually explicit conduct" is "lascivious exhibition of the genitals or pubic area of any person. Knox's three videotapes featured extended closeups of the mid-sections of minors, which were covered by bathing suits, panties, and the like. 2. Knox was convicted in a bench trial. The trial court concluded that the statutory requirement of "exhibition of the genitals or pubic area" was satisfied because the upper thighs are part of the pubic area and were exposed in the videos. Knox was sentenced to five years in jail. 3. The U.S. Court of Appeals for the Third Circuit affirmed. It rejected the trial court's conclusion that thighs are part of the pubic area. But it concluded that the federal child pornography statute "applies equally to any lascivious exhibition of the genitals or pubic areas whether those areas are clad or completely exposed." It also said that the lasciviousness question "is essentially a subjective inquiry into whether or not the material is intended to elicit a sexual response from a viewer." 4. In January 1993, Knox filed a petition for Supreme Court review. In March 1993, the Acting Solicitor General filed an opposition defending the Court of Appeals' decision. The Supreme Court granted cert. 5. In September 1993, Solicitor General Drew Days filed the Justice Department's brief on the merits. The DOJ brief argued that the Court of Appeals' legal standard was incorrect. DOJ said that, based on the statutory language and the legislative history, (1) an "exhibition" of the genitals or pubic area requires "visibility" (either nudity or visibility through clothing) and (2) lasciviousness requires that the minor personally pose or act in a lascivious manner. The SG stated that it was possible that Knox's conviction could stand under the standard DOJ suggested. The SG also rejected Knox's claims that nudity is required in all cases and that the evidence in this case does not support a finding that Knox had the necessary criminal intent. 6. On November 1, 1993, the Supreme Court remanded the case to the Court of Appeals for consideration in light of the SG's position. 7. On November 4, 1993, the Senate passed a "sense of the Senate" resolution by a vote of 100-0. The resolution states that (1) congressional intent is that "exhibition of the genitals or pubic area is not limited to nude exhibitions or exhibitions in which the outlines of those areas were discernible through clothing"; (2) the statutory requirements "are satisfied if a person photographs a minor in such a way as to exhibit the child in a lascivious manner"; and (3) the DOJ brief "deprive [d] the United States Supreme Court of the adverseness necessary for full and fair presentation of the issues in the case" and "did not accurately reflect the intent of Congress." Office of the Deputy Attorney General Mushington, B.C. 20530 November 4, 1993 The Honorable Joseph Biden United States Senate Washington, DC 20510 Dear Senator Biden: During the course of the debate on S. 1607, the Violent Crime Control and Law Enforcement Act of 1993, a question has been raised concerning whether the position taken by the Solicitor General in Knox V. United States evidences a lack of commitment to fighting child pornography. We want all who are concerned to understand that the Department of Justice is fully committed to continuing to play a leading role in the fight against such material. As part of that effort to fight child pornography, the Solicitor General has authorized the filing of a petition for a writ of certiorari in the Supreme Court seeking to overturn the decision of the United States Court of Appeals for the Ninth circuit in United States V. X-Citement Video, Inc., 982 F.2d 1285 (1992). That decision held unconstitutional that portion of the federal child pornography statute prohibiting transportation, shipping, receiving or distributing material involving the sexual exploitation of minors (18 U.S.C. Section 2252). We will urge the Supreme Court to review and reverse that decision, restoring this important tool in the fight against child pornography. In Knox, after careful review, the Department determined that prosecution had been inconsistent with the definitions set forth in the Congressionally enacted statute. The Solicitor General strongly believes that he should not defend criminal convictions in the Supreme Court where the prosecution rests on an erroneous interpretation of the applicable statute. You should be aware, however, that the facts in Knox were unique. The pictures in that case were of adolescent girls who were clothed and who were not engaging in any sexual activity and the defendant was an individual who had purchased and possessed three videotapes. It is the only case of which we are aware which was prosecuted on such a factual basis. The position taken in that case will not adversely effect our prosecutorial efforts against child pornography. 100 VTO ГОД 6116 TTS 2022 14:02 08/10/11 - 2 - I hope that this letter answers the questions which have been raised concerning the Knox case. The Department remains committed to fighting child pornography and defending the federal child pornography statute. We look forward to working with you and other Senators in that effort. Sincerely, Philip Philip B. Heymann Heymann Deputy Attorney General £00 1 VT0 rod 6119 tts 2020 14:00 01/10/11 Q & A'S RE: DOJ'S CHILD PORNOGRAPHY BRIEF 1. Isn't the Justice Department's brief in the Supreme Court an admission that the Clinton Administration doesn't care about child pornography? No, it certainly is not. This Administration is strongly committed to cracking down on child pornography. In fact, just this week, in another case, the Justice Department filed an appeal to the Supreme Court strongly challenging a federal court decision which struck down an important part of the federal child pornography statute. We will fight vigorously to protect this important tool in the war against child pornography. And let me be clear that nobody needs to convince this Administration about the need to be tough on child pornography and the exploitation and abuse of children. I am absolutely convinced that this Administration will have the best record of preventing abuse of children of any Administration in history. Attorney General Janet Reno and FBI Director Louis Freeh are as tough and experienced as they come in fighting crime and protecting children against abuse and exploitation. 2. But what about the Justice Department's brief in the Knox case? Let me explain a few facts. First of all, the Justice Department's brief says only that the lower court misinterpreted the particular language of the statute. The Justice Department's brief does not say that the defendant should go free. It says that the defendant's conduct should be considered under the correct standard. That's all. Also, I should point out that the Justice Department rejected many broad arguments raised by the defendant. A major part of the Justice Department's brief was devoted to opposing broad attacks on the child pornography statute. 3. But didn't the Supreme Court say that the defendant should go free because of the government's position? No. The Supreme Court said only that the case should go back to the lower courts for further consideration. 4. will the government continue to try to get a conviction in the Knox case or will it drop the prosecution? As I said, the Justice Department's brief suggested that the case should be sent back to the lower courts to consider the defendant's conduct under the proper standard. The Supreme Court sent the case back to the lower courts, and any other statements about the pending case at this time would be inappropriate. 5. Won't the Justice Department's position in the Knox brief interfere with many prosecutions? Absolutely not. The facts of this prosecution were unique. There has never been a prosecution like it before. There will be no effect on the government's efforts against child pornography. 6. Did you approve of the Justice Department's position in this case? The Solicitor General made this determination in the ordinary course of reviewing Supreme Court cases. He concluded that the lower court had applied the wrong standard under the language of the statute and that the lower courts should consider the case under the correct standard. Neither I nor anybody else at the White House had any part in the decision. 7. What do you think of the Senate's "Sense of the Senate" resolution opposing the Justice Department's brief in this case? I have no problem with the Senate's action in expressing its views. I also want to point out that the Senate's resolution is part of the crime bill, which I have strongly supported and which will make our streets safer and more secure. As I have said many times, we need to pass the Brady bill, put more cops on the street, and impose swift and certain penalties on criminals. I urge Congress to pass the anti- crime legislation promptly and send it to my desk. 8. Would you support a change in the child pornography statute to make it as broad as the lower court thought that it was? Yes. I have no problem with such a change. [NOTE: Some DOJ officials have privately stated -- and been reported as saying without attribution -- that there may be constitutional problems with the broader interpretation. But DOJ's brief does not make this point.] [Possible alternative answer: Any discussion about a statutory change is premature. The Supreme Court sent the case back to the lower courts to work out the proper standard and the resolution of the particular case, and we should let the process take its course. But let me say again that I and my Administration stand firmly against child pornography and against any abuse or exploitation of children, and we will continue to take vigorous actions to crack down on this terrible evil.] REICH BRiefing Book I. GOALS AND OBJECTIVE - STAW - MANDY - II NR SECURITY (NANCY BOSNiA DON ) SOMALIA HAirl ET AL. RAHM m NAFTA WALDOW ] W HEALTH CARE [MAKLA] IRA Elter V. CRiME / ViOLENCE [REED] D2 VI Anniversary PRINCE] VU FIRES VARNEY] Vm ELECTIONS [Ann + kim] IX Economy [spenline] GRUNWALD, ESKEW8DONILON TEL No. 2024670818 Nov 4.93 19:00 No. 001 P.02 MEMORANDUM TO Mark Gearan FROM Mandy Grunwald DATE November 5, 1993 RE President's Appearance on Meet the Press As you requested, a few thoughts on the President's appearance on Meet the Press. First, a few general points about style. 1. Be the President, not the pundit. Russert will try to draw the President into an analysis of where the votes are on NAFTA, why Republicans won so many elections on Tuesday etc. ] know it's tough for him, but he's got to resist his inclination to be Bill Schneider instead of Bill Clinton. 2. Be confident, not combative or defensive. I've noticed recently that the President has sounded defensive and overly combative on a number of issues from his accomplishments to date, to his effort on NAFTA, to his foreign policy decisions. It's important that he not let Russert make him defensive, but be confident and firm. 3. Talk about people, not macro-policy or Congressional language. The President needs to get to back to one of his greatest strengths -- talking about the challenges that families are facing. Lately, he's been talking in more macro terms ["economic stagnation" instead of "families who are working two jobs just to make ends meet"]. 4. Don't get trapped in the details or the numbers. Russert loves numbers questions ["How can you justify 100 million people paying more for health care "] or specific policy questions [the sugar & citrus side deals for NAFTA]. The President obviously has to answer the questions, but he's got to make sure he doesn't get trapped in the details, but uses them to make his broader thematic points. 5. A little candor and a little humor go a long way. GRUNWALD, ESKEW&DONILON TEL No 2024670818 Nov 4.93 19:00 No 001 P.03 As to the substance of what the President should convey. I'm not going to make specific issue by issue suggestions. I'll convey my health care advice separately. Overall, I think he should convey a sense that he is tackling the real problems of real people. The American people are struggling to make ends meet in a changing world, We're trying to provide them the tools and security to do that. How? * Creating jobs * Breaking down trade barriers + Getting our fiscal house in order * Providing the security of health care that can never be taken away * Providing the opportunity to any child, regardless of income, who wants to go to college. Finally, I hope you have prepared him with answers on Moynihan's ammunition tax and the whole Packwood mess. On the latter, I hope he has no problem slamming the Senate and saying that this week's events remind people of everything they dislike about Congress. Further, that it's unfortunate that the focus on the Senator's diary has obscured the very troubling question of sexual harrassment. Let me know when the prep session will be on health care, or any other sessions you would like me to join. November 4, 1993 TO: Mark Gearan FROM: Bill Galston SUBJ: Meet the Press No individual issues in my domain seem terribly burning, but I do want to raise two larger contextual points. 1. Like it or not, Tuesday's elections are likely to form the context for the President's interview. Analysis and commentary such as today's articles by Al Hunt, David Broder, Tom Edsall, and others will constitute the conventional wisdom baseline for Russert's opening political questions, which will suggest that the voters are registering their disapproval of the President and administration and that things look bad for 1994 and beyond. I don't believe that our current public line--that Tuesday simply represents a continuation of the public's desire for change--is entirely adequate. In my judgment, the President should begin his response by forthrightly acknowledging the actual content of the public's complaints: violent crime without the certainty of swift punishment, higher taxes without improved government performance, an economy in recovery that still hasn't generated enough jobs and opportunity. He should then say that turning the country around is a huge job that will take time. "We've made a good beginning, but there's much more to do. The administration's historic deficit reduction has set the stage for a long period of steady economic growth and job formation with low inflation. Economic developments in recent months have been very encouraging. We've begun to attack the federal government's archaic procedures and entrenched bureaucracy. Within the next year, we're going to enact fundamental reforms in health, welfare, crime, and education. And the passage of NAFTA will mean more production right here ia America, more exports, and more high quality jobs. That's a record on which Democrats can run and win. But I don't expect the American people to take my word for it. They're going to judge our party and administration by results, not rhetoric. If they can't feel the change in their lives, it doesn't matter what I say. And if they can, it doesn't matter what my critics say." 2. I think the President was really on the right track in his North Carolina speech, and he should return to it. During the interview, he should seize every opportunity to relate specific questions to the broader themes of security versus insecurity and change versus the status quo: "It's my administration's responsibility to help the American people face up to the changes that we can no longer postpone or evade. But if people feel insecure--in their streets and their schools, about their jobs and their health care--it will be harder for them to summon the courage to change. The politics of nostalgia just won't work. We cannot freeze change and return to a vanished past. But to the millions of Americans who feel so threatened today, we must extend a helping hand and a solemn pledge: when you accept the challenge of change, you won't be abandoned. And that's what my administration is all about: getting beyond the false choice between the politics of protection and the politics of abandonment, and recognizing that we can't advance unless we go forward together." NATIONAL SECURITY COUNCIL WASHINGTON D.C 20506 : November 4, 1993 MEMORANDUM TO MARK GEARAN FROM: NANCY SODERBERGND SUBJ: National Security Themes for President's Interview with "Meet the Press" Attached are the themes you requested on national security issues for the President's interview with "Meet the Press". As requested, we will provide Q's and A's by COB tomorrow. Tony was out sick and thus has not reviewed, although Sandy has. Tony may have some changes on Friday. National Security Themes Even as we focus on the more dramatic and immediate foreign policy issues of the past month, we cannot lose sight of the real progress we're making on the issues that will have the most important and long-lasting impact on our security and prosperity. We have raised the issue of stimulating world growth to the top of the global agenda, helping to create American jobs and exports. We've pursued this through our work on NAFTA and the Uruguay Round and coordinating economic policies with our G-7 allies. We have also focused unprecedented U.S. attention to our economic relations with Asia, one of the most dynamic and rapidly-growing regions of the world. O We have negotiated a new economic framework for working with a change-oriented government in Japan, achieving a commitment for market opening that will yield new jobs and new exports. We proposed building up regional institutions, an idea I will highlight when I meet two weeks from now with the fifteen leaders at the Asia Pacific Economic Cooperation meeting in Seattle, leaders who represent countries accounting for half of the world's GDP. Our steadfast support for democratic and market reform in Russia has helped President Yeltsin overcome numerous threats from reactionary forces. A successful transition in Russia will allow us to continue to cut defense spending, open markets of hundreds of millions of consumers and eliminate for good the destructive Cold War competition. Secretary Christopher's work to reinvigorate the Middle East peace talks created an environment that allowed the momentous achievements over the past months, including the Israeli-PLO peace signing at the White House. On defense issues, Secretary Aspin's "bottom up" review has given us a road-map for restructuring the military to face the challenges of the post Cold War world, ensuring continued security while allowing us to make even greater defense cuts. O We've also unveiled a proposal - - embraced by our allies, Russia and others - - to offer former Soviet republics and East European nations closer ties with NATO, helping to adapt NATO to the post-Cold War world and promote transatlantic security. We've also provided new global impetus to efforts to protect the qlobal environment and to prevent proliferation of weapons of mass destruction. We've also announced new policies to stem the flow of illegal immigration and to combat international drug trafficking. On the issues that confronted us when we came to office, there have been some difficult times over the past weeks, but we are making progress. In Somalia, we are seeing results from the policy I announced on October 7. African leaders are promoting political reconciliation; attacks on U.S. and U.N. forces have ceased; the Rangers have been brought home; and a commission of inquiry is being set up to hold those responsible for the attack of U.N. peacekeepers accountable for their actions. O We cannot rebuild Somalia - - the Somali people must do that for themselves - - but our commitment to complete our mission there in a disciplined manner is giving them a chance to avoid a return to anarchy and starvation that resulted in the loss of 350,000 lives before our engagement began last December. In Haiti, we have tough international sanctions in place and diplomatic discussions underway in an effort to restore democracy and President Aristide to that country in line with the Governor's Island process. The anti-democratic forces must understand they cannot indefinitely thwart the will and commitment of the Haitian people and the international community. We have strong national interests in helping foster democracy and human rights on our doorsteps in the Caribbean, protecting 1000 Americans in Haiti and preventing a recurrence of mass exodus of Haitians at great risk to themselves and great disruption to us. Lessons of the Past Month We've faced some tough problems over the past month that have commanded Americans' attention. The situations in Somalia, Haiti and Bosnia are not unique: in the uncharted ground after the end of the Cold War, we're likely to face more and more instances in which societies are tearing themselves apart. O We cannot turn our backs on all such conflicts: some, such as Haiti, have broad implications for us. But our primary focus must and will remain on the challenges of primary and lasting importance: Russia, trade, Asia, NATO, Japan, NAFTA, military readiness, combatting narcotics, non-proliferation. We intend to work more closely with Congress and the American people to communicate our priorities and to build consensus regarding when and how we get involved in humanitarian and peacekeeping operations that warrant our participation. At the United Nations, I laid out conditions and questions we must consider before we become involved in these situations: what are our national interests; what are our specific goals; can our involvement really make a difference; what is the exit strategy. We welcome the emergence of a new bipartisan spirit of consultation and cooperation on these issues as well as Congressional reaffirmation of the President's authority to conduct foreign policy. November 5, 1993 To: Mark Gearan Fr: Gene Sperling Subject: Positive Themes for Meet the Press Bob Rubin, Bob Reich, Alan Blinder and I discussed this matter and we felt that other than NAFTA and health care, the only economic theme he should stress is that 1) we have a comprehensive economic plan; 2) while all might not be well, it is working, and 3) that we care about jobs, have a job plan, and it has created 1.2 million private sector jobs in only 9 months. POSITIVE ECONOMIC THEMES I. COMPREHENSIVE PLAN FOR JOBS AND GROWTH THAT IS WORKING: [Strategy: Point out that we have a comprehensive economic plan to invest in our future -- not just separate parts -- that is starting to work, while recognizing that things are not good enough yet, and we need the rest of this comprehensive strategy to move us further toward solving our long-term challenges] WE CAME INTO OFFICE WITH A COMPREHENSIVE PLAN FOR ECONOMIC GROWTH AND JOBS. It was a plan to grow the economy and invest in our people, by borrowing less, investing more, making our tax system is fair, and that our people have the security to embrace the change we need to create economic growth. YES, WE STILL HAVE A LONG WAY TO GO, AND YES, THERE ARE FAR TOO MANY WORKING FAMILIES THAT THE ECONOMY IS NOT WORKING FOR, BUT WE ALSO NOW HAVE AN ECONOMIC STRATEGY THAT IS FALLING IS STARTING TO WORK AND PUT US ON THE PATH TO ECONOMIC RENEWAL Our historic deficit reduction is already bringing down interest rates and bringing up investment in housing, business and technology investment. We've passed a historic tax break for 20 million working families and households making under $27,000. Our economy has now created 1.2 million private sector jobs in the past nine months -- that is 200,000 more private sector jobs created than were created in the last four years. AND IN JUST OUR FIRST YEAR, WE'RE MAKING GREAT PROGRESS AT INVESTING MORE IN OUR PEOPLE AND HAVING A COMPREHENSIVE JOBS STRATEGY including a new national service legislation, a technology reinvestment program to convert to a post-cold war economy, new job creating tax incentives for small business, empowerment zones, a new college loan program -- and we are hard at work to pass our school-work-apprenticeship program, comprehensive worker training. WE HAVE TO TAKE THE NEXT STEPS TO MAKE OUR ECONOMIC STRATEGY FOR GROWTH WORK. That means passing health care reform that not only provides security for all Americans, but is our best hope for keeping the deficit on a downward path. And that means going further with a job creation strategy by opening markets with NAFTA, and by finding the savings we need so that we can invest more in defense conversion, fighting crime and investing in our people. II. THE DEFICIT OR BALANCED BUDGET AMENDMENT: [Three part answer:1) We have done much and it is paying off already; 2) Wc are taking other intelligent steps. 3) But one way not to do this is to pass an rigid balanced budget amendment] 1) We have done much: I am deeply committed to ensuring that we enforce every penny of the $500 billion deficit reduction plan we passed -- the largest in history. That plan included a 12% real cut in all discretionary spending, which is unprecedented. 2) I am deeply committed to enforcing this deficit reduction plan, and keeping it on a downward path. The number one way to do this is to pass health care reform, because it is the 11-16% increase in health care spending that threatens our long-term deficit. In addition we have additional savings from the Vice President's National Performance Review, a rescission bill, and I have just announced the creation of a Bipartisan Entitlement Commission to look at long-term ways to control entitlement spending so wc can bring down the deficit and have more funds available for the investments in the future wc desperately need. 3) I oppose the balanced budget, however, for four basic reasons: One, almost every economists believes it can threaten our economic well-being by putting economic policy in a straight-jacked and has a tendency to make bad economic times worse, longer and more costly to jobs. Two, I believe it is a poor way to govern because it allows us here in Washington to hide from hard choices, and because it is so vague that it will end up putting economic policy in the Courts and not with our elected officials. Three, I fear that it would result in large middle class tax increases, massive cuts to Social Security and that it would have the effect of derailing health care reform, which is our best answer to bringing down the long-term deficit. Four, we need an intelligent process that brings down the deficit without threatening our national or economic security, by distinguishing between investment and consumption and not making unwise cuts in defense or in defense conversion, training or job creation --where few serious people do not believe that we must do more. III. BIPARTISAN COMMISSION: [Overall, remember that we must stress health care reform is the main answer to controlling entitlements, and that this Commission is another step -- not our main vehicle] Everyone on all sides of the political spectrum agrees that we must do something about entitlement spending if we want to bring down the deficit and still be able to invest in the things that matter for growth. The main problem is by far the escalation of health care spending. Medicare and Medicaid growing 11 and 16% respectively. Only with health care reform can we bring about long-term deficit reduction that helps the economy. If we just cut health care programs without reform, we would threaten the security of seniors and just shift costs to the private sector. But there are other serious issues on entitlements that are politically sensitive, and need both serious study and true bipartisan support. That is why I will think the work of this Commission could be so important.