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FOIA Number: 2017-0401-F
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Fast Track - Current (9/97) [1]
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DOCUMENT NO.
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DATE
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001. memo
Ana Buque to the WAVES Center; RE: Personally Identifiable
07/14/1997
#Error
Information [partial] (1 page)
COLLECTION:
Clinton Presidential Records
Special Envoy for the Americas
General Files
OA/Box Number: 11851
FOLDER TITLE:
Fast Track - Current (9/97) [1]
2017-0401-F
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A22
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THE NEW YORK TIMES EDITORIAI
ARTHUR OCHS SULZBERGER JR., Publisher
JOSEPH LELYVELD, Executive Editor
GENE ROBERTS, Managing Editor
GERALD M. BOYD, Deputy Managing Editor
JOHN M. GEDDES, Deputy Managing Editor
BILL KELLER, Deputy Managing Editor
The New York Times
Assistant Managing Editors
SOMA GOLDEN BEHR
CAROLYN LEE
DAVID R. JONES
JACK ROSENTHAL
ALLAN M. SIEGAL
Founded in 1851
ADOLPH S. OCHS, Publisher 1896-1935
HOWELL RAINES, Editorial Page Editor
ARTHUR HAYS SULZBERGER, Publisher 1935-1961
PHILIP M. BOFFEY, Deputy Editorial Page Editor
ORVIL E. DRYFOOS, Publisher 1961-1963
ARTHUR OCHS SULZBERGER, Publisher 1963-1992
JANET L. ROBINSON, President, General Manager
WILLIAM L. POLLAK. Executive V.P., Circulation
PENELOPE MUSE ABERNATHY, Senior V.P., Planning
DANIEL H. COHEN, Senior V.P., Advertising
RICHARD H. GILMAN, Senior V.P., Operations
RAYMOND E. DOUGLAS, V.P., Systems and Technology
CHARLES E. SHELTON, V.P., Distribution
DENNIS L. STERN, V.P., Human Resources
DAVID A. THURM, V.P., Production
Mr. Clinton Deserves 'Fast Track'
President Clinton begins an important battle
Gephardt, proclaim. Low wages largely reflect low
with Congress this week for renewal of "fast track"
productivity, providing no net benefit to foreign
authority, the right to submit trade agreements to
manufacturers. Nor would higher foreign wages
Congress for a speedy vote without amendments.
help American companies. Rising production costs
1
Without fast-track protection, countries will not
would be offset by a falling exchange rate, leaving
negotiate trade accords with Washington for fear of
the net cost of imports to American buyers largely
endless revision, Not surprisingly, protectionist
unchanged.
forces within both parties would be happy to block
That said, the Administration goes too far in
the no-amendment rule, even though every Presi-
claiming that trade helps everyone. The influx into
dent over the past 20 years has used the rule to open
the United States of clothing and other goods pro-
up foreign markets and also bring down prices for
duced with low-skilled labor has modestly pushed
American consumers.
the wages of unskilled workers further behind the
The Administration needs fast track to com-
wages of skilled workers. But rising inequality
plete negotiations within the World Trade Organiza-
should not be confused with falling living standards.
tion on opening markets to foreign-provided serv-
ices, tightening copyright protections and prying
After taking account of lower prices for imported
open government contracts to bids by foreign com-
goods and the availability of jobs in a fully em-
panies. Fast track is also needed to negotiate trade
ployed economy, very few Americans actually lose.
agreements with Chile and other South American
Though labor and environmental conditions are
countries. They are already negotiating deals with
rarely related directly to trade, the United States
Europe, Mexico and Canada that would give exports
should condition trade pacts on a country's willing-
from those countries favored access.
ness to adopt agreements that provide basic inter-
Opponents ranging from isolationists to pro-
national protections, like prohibitions on child labor
union liberals indict trade pacts with environmen-
and rights for union organizers. As in the trade
tally lax and low-wage countries. The claim is that
accord with Mexico, Washington ought to insist that
these countries steal American jobs and drive down
countries, like Chile, strictly enforce their own
living standards of American workers. But trade
environmental laws.
itself does not create or destroy jobs. The American
Bill Archer, chairman of the House Ways and
economy will operate near full employment as long
Means Committee, proposes a reasonable compro-
as Federal Reserve and budgetary policies remain
mise that would allow the Administration to incor-
sensible. Trade does shift jobs from apparel and
porate into the text of a fast-track accord labor and
other low-paying industries into high-paying export
environmental conditions that directly affect trade
industries. The transition can be rough, but the long-
in specific products. The details remain to be
term benefits are substantial.
worked out, but the Archer plan offers an opportuni-
Nor are low foreign wages the scourge that the
ty to fashion a sensible fast-track plan that can be
PHOTOCOPY
forces led by the House majority leader, Richard
made acceptable to Democrats.
PRESERVATION
T.P him
Page 10 ROLL CALL Thursday, July 17, 1997
the
1
582
DISCOT
PENNSYLVANIA AVENUE
By Morton M. Kondracke
NAFTA Redux:
US trade power to influence other countries'
formation technology, biotechnology, agricul-
bring other nations up to US standards, re-
domestic policies or, failing that, deny Clin-
ture, and professional services with Asian coun-
ducing the chances that American companies
Both Sides Gear Up
ton power to negotiate new pacts.
tries and at the World Trade Organization.
will flee to low-wage nations where environ-
Politically, the battle over fast-track trade
The Administration argues that open trade is
mental enforcement is weak.
For 'Fast Track' Fight
authority will be a major test of strength be-
partly responsible for America's current eco-
Congressional Republicans, however,
tween "old Democrats" led by House Minor-
nomic boom and low inflation and that, without
adamantly oppose any effort to weigh down
W
hile taxes, Medicare, and scandal
ity Leader Dick Gephardt (Mo) and "new
renewed fast track authority, the US will lose out
trade pacts with labor or other restrictions ex-
probes dominate Washington sum-
Democrats" led by President Clinton and his
as other nations rush to negotiate trade deals.
cept when they are "directly related" to trade
mer agenda. the White House and its
would-be successor, Vice President Al Gore.
Labor unions and Gephardt counter that
as when a foreign country uses environ-
adversaries are gearing up for a bruising fight
It also will be a test of whether nationalist-
free trade also is responsible for stagnant
mental regulations to keep US products out.
this fall over trade legislation.
isolationist sentiment is gaining in the Re-
wages among the poor and unskilled, who
The Administration, arguing that foreign
The Clinton Administration sees Congres-
publican party.
can compete with foreign workers.
countries won't stand for Gephardt-like inva-
sional approval of fast-track authority to negoti-
"Fast track" gives the President authority to
Gephardt insisted in a recent interview that
sions of their sovereignty, wants a "clean bill"
ate new trade agreements as a major part of
negotiate trade deals, which then can only be
he and labor unions are not "protectionist,"
authorizing fast track.
both its foreign policy and its domestic agenda.
voted up or down by Congress, not endlessly
but want it written into trade pacts that the US
Gephardt's staff complains that the Ad-
Lining up against the White House is an
amended. Having won fights over NAFTA and
will close its markets if other countries do not
ministration has been unwilling even to ne-
odd coalition of organized labor, some envi-
GATT. Clinton intends to seck free-trade pacts
live up to their own labor, environmental, hu-
gotiate. "They want a fight," said one aide.
ronmental and consumer groups, and Ross
and well as so-called
man rights, and anti-drug laws.
"They want to establish Clinton as an inter-
Perot and Pat Buchanan, who want to use
"sectoral" market-opening agreements on in-
Gephardt said that the aim is to gradually
national leader or to isolate one part of the
Democratic party. It a testosterone test.'
Clinton aides confirm that they aren negoti-
ating with Gephardt or labor because "nothing
we could give them would win their support.
They ve never supported a free-trade deal.'
Formally, the trade fight begins in mid-Sep
tember, when Clinton and Gore roll out their
fast-track proposal. In fact, however, the fight
is already on. US Trade Representative Char-
lene Barshefsky has held 170 briefings with
Members, and the Administration is getting
ready to hire Jay Berman, presideriti of the
PLEASE BE PREPARED TO
Recording Industries Association of America,
to spearhead the fast-track sales effort.
The AFL-CIO also has brought on a chief
track strategist, Mike Tiner, and is planning
BRING YOUR SEAT FORWARD,
The battle over trade
authority will be a major
test of. strength between
YOUR TRAY TABLE INTO ITS
two party factions:
Gephardt's 'old Democrats'
versus the Administration's
LOCKED AND UPRIGHT POSITION
'new Democrats.'
to spend several million dollars during Con-
gress's August recess on local TV advertising.
Simultaneously, the Business Roundtable is
AND DIG VERY DEEPLY
planning its own TV blitz, to be supplemented
by invitations for Members to visit industries
prospering because of foreign trade. The 'new
Democrat" Democratic Leadership Council
also plans to weigh in on the Clinton/ Gore side,
INTO YOUR POCKETS.
mobilizing government officials.
Early vote-counting suggests that Clinton
faces a tough fight, but one he ought to win if
he wages an all-out effort. Clinton pollster Mark
Penn has told White House aides that 62 percent
of Americans support "free trade" and 82
percent, "fair trade" suggesting that the
White House campaign will promise that Clin-
Right now Congress is considering proposals that would raise the price of flying and
ton will seek "tough, fair trade agreements.
undermine the travel and tourism industry, which accounts for nearly six percent of the
Penn's polls also show a significant gender
gap on percent of men and
nation's GDP and generates nearly nine million private sector jobs. The most unfair of these
55 percent of women in favor of free trade, in-
proposals originates in the Senate It would place two-thirds of the revenue burden on interna-
cluding 54 percent of male Democrats and
tional travelers through a combination of international charges. The House proposal-
39 percent of female Democrats.
Trade lobbyist and vote-counter Phil Potter
Congressman Archer's plan-is fairer and less threatening to the economy.
says that the likely winning majorities for fast
track will be 150 to 160 Republicans and
60 to 70 Democrats in the House, and plus
We urge you to back the voices of fairness and reason in Congress.
Republicans and 20 Democrats in the Senate.
Please call your Senators and Representatives today. Just call 202-224-3121.
Gore and Clinton will want to maximize
Tell them to save you hundreds-if not thousands-of dollars by supporting
Democratic support with Senate Minority
the House proposal. Do it today. On July 18, it will be too late.
Leader Daschle (D-SD) as crucial play-
er but they also can't risk offending Re-
publicans. In 1993, only 43 House Republi-
cans voted against NAFTA, but 56 voted in
United Airlines
1994 against the GATT trade agreement and
79 voted this year against MFN for China.
Clinton has been a big winner so far this
year in Congress on the budget, chemical
weapons, and MFN. But trade will be a big
test, not just for him, but also for Gephardt,
Gore, and GOP leaders. It's NAFTA redux
a helluva fight.
PHOTOCOPY
PRESERVATION
Page 6 ROLL CALL Monday, July 7, 1997
PENNSYLVANIA AVENUE
By Morton M. Kondracke
Surprise! Clinton
of US troops in Somalia, being intimidated by
the world and in the US, and to expansion of
can be achieved. Some Clinton aides say that,
thugs in Haiti, and having diplomatic initia
NATO to keep the US cemented in the post-
de facto, the world lives under a Pax Ameri-
Is a Good Foreign
lives bluntly rebuffed in China and Bosnia.
Cold War European security structure.
cana and that Clinton wants to keep it that way.
To the despair of his Secretaries of State and
In both cases, he faces fights in Congress
The seven competing visions identified by
Policy President
Defense, Clinton wasn't interested in foreign
to keep the momentum going this year on
Robert Harkavy of Pennsy Ivania State Uni-
affairs and spent little time on it. The results
fast-track authority to negotiate new trade
versity are:
A
S President Clinton heads to Europe this
showed in repeated humiliations for the US
agreements and in 1998 on Senate ratification
(1) A three-bloc world in which Europe,
week to preside over expansion of
and the Administration
of NATO expansion.
Asia, and America are "geo-economic" and
NATO, it's hard to remember that this
But that's changed. Besides deciding it was
But contrary to the rap that his foreign pol-
perhaps geopolitical rivals;
is the same President who made such a mess
dangerous not to pay attention to foreignaffairs,
icy is driven simply by domestic politics,
(2) The multipolar, balance-of-power
of foreign policy at the outset of his first term.
Clinton also got lucky. Former President Jim-
there is a distinct vision to Clinton's view of
world order anticipated by Henry Kissinger;
It's too much to say that Clinton has been a
my Carter saved him from disaster in Korea and
the US place in the world, if not exactly a
(3) "Zones of peace/zones of chaos," the
great foreign policy president luckily, he's
in Haiti, and Croatian military advances gave
grand strategy.
theory of Robert Kaplan that the Third World
had no wars or grave crises to face but his
him a second chance to build peace in Bosnia.
One scholar has identified seven models for
faces environmental and political catastrophe
strategy and execution so far have been very
However, Clinton also deserves credit for
the shape of the world's future, and the evi-
while the industrial world prospers;
good, setting up the structure for continued
developing a sound overall strategy almost
dence suggests that Clinton isn't confused
(4) The "clash of civilizations" theory of
US global leadership in the 21st century.
from the outset on two key fronts: world trade
about which one he believes in
Harvard's Samuel Huntington, which antici-
Clinton's success in this arena is a surpris-
and Europe.
Clearly, Clinton thinks that the United States
pates conflict between Muslims, Christians,
development in view of the disasters he en-
He's been dedicated since 1993 to an open
is the world's lone superpower, the "indis-
and Confucians;
dured early in his first term, such as the death
trading system, the key to prosperity around
pensable nation" without which nothing useful
(5) The "global village" model identified
by left-wing scholar Richard Bamet, in which
all the world's peoples are victimized by
supra-national corporations;
(6) A bipolar world, with the US and Chi-
na as 21st century rivals; and
(7) The unipolar, one-superpower world first
identified by columnist Charles Krauthammer.
Clinton is operating under the last model
and trying to make sure that the others are
short-circuited, especially the three-bloc or
two-bloc scenarios. This accounts for his
Clinton deserves credit
for developing a sound
overall strategy from the
Accelerated
outset on two key fronts:
world trade and Europe.
NATO initiative, efforts to get along with
Communist China, and the formation of links
to other Asian countries.
But there are dangers to the system Clinton
is trying to foster. A famine-crazed North Ko-
rea could launch a desperate attack on South
Korea, making Clinton a war president. Re-
lations with China could easily become ad-
versarial, and Clinton_could be embarrassed
Approving the V-22 program was smart.
by renewed warfare in the Balkans.
Dangers also face him in Congress, where--
Saving $6 billion now would be brilliant
a majority of Democrats and a growing mi-
nority of nationalistic Republicans oppose
Mark,
fast-track. In debate this fall, Clinton will be.
always
helped, though, by the booming US economy
The decision to fund the Bell Boeing V-22 program was a clear signal of America's
and low unemployment, which refute the idea
determination to maintain a highly flexible, worldwide deployment capability that is both
a
that free trade "sucks" jobs out of the country.
NATO expansion, Clinton- is opposed
effective and affordable.
by dd collection of liberal doves and hawk
hard-liners, ranging from Rep. Barney Frank
A model of efficiency and productivity, the versatile V-22 is the only
(D-Mass) and former arms control chief Paul
vertical-lift aircraft designed to be effective anywhere today's smaller, more mobile
Warnke on the left to former Pentagon offi-
cial/Fred Ikle, Russia scholar Richard Pipes,
military might find itself In combat, transporting troops and equipment. In
and former Sen. Gordon Humphrey (R-NH)
on the right.
peacekeeping, helping calm volatile trouble spots and evacuating U:S. citizens.
The opposition also includes such centrists
Even in humanitarian roles, helping those unable to help themselves.
as former Sen. Sam Nunn (D-Ga) and former
Clintonadviser Michael Mandelbaum. the
But despite all the obvious benefits of the V-22, deploying it will take
other hand, Foreign Relations Committee
ranking member Joe Biden (D-Del), who had
over 20 years at the current production rate. That delay will deprive our quick-
been opposed, has declared in favor of ex-
reaction forces of the aircraft with the speed, range, payload and survivability
pansion, though he says that getting two-thirds
of the Senate toapprove it will be 'areal fight.
they need to execute their missions.
Opposition is based on potential cost, fear
of renewed Russian nationalism. and the prob-
Accelerating production would put the V-22 fleet into the field sooner, providing
lem of Central European states left out of the
expansion.
several additional years of vital air transport. And a recent study proves accelerating
So far, Clinton has met the objections by
the program would also save six billion dollars.
seeking European cost-sharing. winning as-
sent from Russian President Boris Yeltsin, and
Consider all the facts in terms of what is best for the country now and for tomorrow
permanently excluding no democracy from
membership. He II make a side trip this week
Because the future will be here sooner than we think
to Romania to stress the point.
With budget constraints and advancing
lame-duckhood increasingly impairing his
The Tiltrotor Team
ability to institute domestic initiatives. Clinton
07997 d"Hebcopter Textion Inc /Boemg Helicopters
may well major in foreign policy for his last
years in office Hc might even get a top grade.
PHOTOCOPY
PRESERVATION
Page 6 ROLL CALL Monday, June 16, 1997
PENNSYLVANIA AVENUE
By Morton M. Kondracke
Early 2000 Score Is
position to the budget deal that Clinton cut
$35,000 per year by giving them a $200 per
If so, that would be a major triumph for
with Congressional Republicans.
person credit for Social Security taxes.
Clinton, who has been trying to re-orient the
Gore 2, Gephardt 0,
The second test occurred in two House
During the caucuses, moderate Democrats
party to a new, less goverment-heavy direc-
Democratic Caucus meetings on June 5 and
like Rep. Cal Dooley (Calif) argued that a tax
tion. Gore is Clinton's partner in the endeav-
But Stay Tuned
June 10, when a lopsided consensus devel-
plan so heavily skewed to the poor would hurt
or and will have to run in 2000 on the success
oped in favor of a Democratic tax proposal
Democats in middle-class districts, which
or failure of that effort.
A
fter the first two tests of strength of the
that held to the terms of Clinton's budget
they need to win in order to recapture control
Even though Gore is leading Gephardt af
2000 Democratic presidential race, the
deal.
of the House in 1998.
ter two rounds, the 1997 maneuvering is fai
score is Vice President Al Gore 2,
No votes were taken, but It was clear that
Gephardt, who earlier blasted the budget
from over. Other key tests will come over fi
House Minority Leader Dick Gephardt (Mo)
the deal-breaking alternative offered by Rep.
deal for deficit of fairness" and tried to or-
nal passage of the budget. most-favored-na-
0. But by this fall, Gephardt could narrow the
Jim McDermott (Wash) was supported only
ganize opposition to its tax provisions, ended
tion trade status for China, and fast-track au-
gap.
by 20-odd Democratic liberals.
up supporting the tax alternative drawn up by
thority for trade agreements.
Gephardt has suffered two defeats trying to
They were the only ones cheering when
Ways and Means Committee Democrats that
Gephardt and the Administration presently
pull House Democrats away from President
Rep. Jesse Jackson Jr. (III) declared during the
closcly tracked Clinton's position.
are united in opposition to the House Repub-
Clinton's budget deal, but he could win future
June 5 meeting, "It's time to declare the Clin-
Besides raising doubts about Gephardt's,
lican version of the tax bill, but eventually
fights over the budget and trade.
ton era over and move on."
ability to lead his own troops against Clinton
Clinton and Gore will have to decide whether
The first contest occurred on May 20, when
McDermott's proposal would have direct-
and Gore, the Democratic budget decisions
to support or oppose the final version pro-
only 72 of 204 House Democrats present and
ed $130 billion worth of tax relief over five
suggest that the center of gravity in the Dem-
duced by Congress.
voting (35 percent) supported Gephardt in op-
years mainly to families making less than
ocratic party has shifted to the center.
As a Republican document, it almost cer-
tainly will contain more tax breaks for the
wealthy than Clinton now favors, and
Gephardt is certain to be against it.
If Clinton supports the final House-Senate
conference report as a means of securing a
nnkeepers, awake!
bipartisan budget deal, Gephardt will have
another chance to pull away a majority of
Democrats and score a victory over Clin-
ton/Gore.
Of course, if the final version is truly dis-
tasteful to Clinton, he could use his veto to ca-
jole Republicans into an acceptable compro-
Gephardt has suffered two
defeats trying to pull
House Democrats away
from President Clinton's
budget deal, but he could
"The cruise lines
win future fights on the
are coming!
budget and trade.
mise as he did in the disaster supplemental
The cruise lines
fight, burnishing his image as a crafty leader
and boosting Gore by reflection.
are coming!"
On trade, Gephardt is on somewhat
stronger ground, at least on fast-track. Vote-
counters think that Clinton presently stands to
win a majority of House Democrats on MFN
forChina-possiblyabigger majority among
Democrats than among Republicans, since
Christian conservatives are contesting that
party's free-trade tradition.
Picture this:
But fast-track is a much tougher fight. De-
terioration of free-trade sentiment among Re-
An array of 130 hotels,
Well, that's last what some
groups on
American
publicans means that instead of being able to
tasinos, resorts and
patch together a majority with 160 Republi-
with
Jobs
cans and 60 Democrats, Clinton may need 80
or 90 Democrats.
all major Hotels in Vegas
Act be repealed modified
in America's
The AFL-CIO is gearing up to assist
and Atlantic City, combined
of so the oreign
Gephardt in defeating fast track with TV ads
Invade your territory to
flag cruise lines can
Markets
running in the districts of moderate and con-
compete for your Customers.
their growing fleets of
servative Democrats declaring, "Don't let the
AB If that weren't enough,
floating mega hotels,
and casinos in America's
Wake-up call
people who brought you NAFTA do it to you
your new compèti bring
domestic with
brought you
again."
with them the following
those unbeatable cost- laving
World city Corporation and the
The ads claim that the North American Free
cost advantages:
Unifican Flagship Project
competitive
Trade Agreement - whose ratification Clin-
employment of non-U.S
ton won in 1993 despite the opposition of
workers (and no minimum
Do you have
World City Corporation
Gephardt and a majority of Democrats has
wage requirements)
330 East 43rd Street
a-problem with
been a job-loser for American workers.
New York, New York 10017
The Administration faces the difficult task
exemption
11.
that?
compliance with laws
of convincing Congress and the public that
governing the Affierican
NAFTA has been a success, in spite of a US
workplace
(ã) write your Members of
trade deficit with Mexico, because it prevent-
Congress
ed an economic crisis in Mexico from being
freed from payment of
(b) alert your employe and
worse than it was.
U.S. state and federal taxes
shareholders ON HOW
Gore last month declared that opponents of
operation of casinos free
situation would affect them
free trade are the advocates of "outdated poli-
from any state regulation
cies" that are "just plain dangerous in the in-
formation age" and are "the exact opposite of
capital Costs financed
what the country needs."
to 10% by foreign
Look for Clinton/Gore to score three vic-
governments
tories over Gephardt on the budget and one
on MFN; Gephardt, however, stands a good
chance of coming back on fast-track. But if
Gore wins that one, 100, the game may be up
for traditional labor liberals.
PHOTOCOPY
PRESERVATION
FAXED To MARK
PENN w/NOTE
THAT You WILL
TRY To CALL
Him TOMORROW.
to
Fast or Fatal Track for Democrats?
The Irishman, as William Butler Yeats
ists. the Pat Buchanan-led economic na-
It also goes to the politics of 2000. Leal-
ts-privately. that number is more like
tionalists and Ross Perot.
ing the fight against fast track will re
70-out of the 206 total House Democrats.
wrote. has "an abiding sense of tragedy
which sustains him through temporary pe-
Despite the strong economy. the public
House Minority Leader Dick Gephardt (I.,
But according to a reliable Democratic
riods of joy. If political parties were na-
is skeptical of unfettered free trade. In this
Mo.). Within the administration sits an 111-
strategist, there are currently fewer than
week's Wall Street Journal/NBC News
comfortable Vice President Albert Goe,
60 Democratic votes for fast-track. AI a
tionalities. the Democrats would be Irish.
For Democrats, joyful over the schisms
poll. respondents by a stunning 2-to-1 mar-
who knows the issue is going to cause hm
White House meeting last week. Rep.
plaguing Republicans, there is a looming
gin opposed giving the president fast-track
grief with core constituencies.
Charles Rangel of New York, the ranking
calamity: the fast-track initiative Presi-
Mr. Gephardt has tried to persuade he
Democrat on the Ways and Means cont-
authority.
dent Clinton will propose in September to
Some of this is H residual effect of the
administration to water down any request
mittee. pointedly warned the president he
1993, North America Free Trade Agree-
for Cast-track authority. in order to Unit
has to do more for workers displaced by
THE WALL STREET JOURNAL THURSDAY, JULY 31, 1997
give him authority to negotiate free-trade
agreements.
ment. U.S. Trade Representative Charlene
the political fallout; even free-trade )e-
trade pacts
Other concessions may prove very clu-
There are two realities here: One, fast-
Barshefsky, in laying the groundwork for
mocrats like California's Vic Fazio have
track is essential if the U.S. is to continue
voiced concern to both Mr. Gephardt and
sive. The Nafta side agreement on labor
fast-track legislation, has talked to more
to play a leading role in the global econ-
than 175 members of Congress, and practi-
the White House over the likely political
and environment has proven toothless.
omy: but two. It will seriously exacerbate
cally every one offers a Nafta horror story
damage. But Clinton operatives are con-
Leading congressional Republicans now
fault lines within the Democratic Party. It
of some plant that moved or jobs that were
insist on going the other way, telling the
White House there must be language that
is a foregone conclusion that il decisive ma-
lost. Actually. much of this is exagger-
Uphill Track
ated; Nafta hasn't yet produced some of
makes it clear that any trade negotiations
jority of congressional Democrats will vote
against the president: the ensuing tensions
the benefits proponents promised, but nei-
President Clinton will ask Congress 10 give
involving tabor and environmental mat-
will make It considerably harder for them
ther has it caused the ills critics claim.
him "fast-track" authority to negotiate more
ters will be very limited.
to win back control of Congress in 1998.
But the White House will try strenu-
free trade agreements. This would mean hat
"If the president tries to cater to Dick
ously to divorce fast-track from these
once the negotiations are completed.
Gephardt and John Sweeney, The's not go-
Nafta perceptions. We won't fight this on
Congress would take an up-or-down vote,
ing to get fast-track, bluntly warns Rep.
Politics & People
the Nafta battleground,' says Victoria
but not make any amendments or changes
David Dreier (R. Calif 1. a key GOP trade
Radd, a top White House aide who has
Do you favor or oppose this?
strategist.
been detailed to the iast-track fight. "We
In the end the president will probably
By Albert R. Hunt
will fight it on the future battleground.
FAVOR
32%
succeed. Despite public opinion and formi-
Similarly, Ambassador Barshefsky says:
61%
dable opposition, presidents almost Invari-
OPPOSE
"To say that fast track is Nafta ignores the
ably win major Toreign policy and trade
Poll taken July 26-28. 1997.
initiatives. Moreover. for all the rhetoric of
The fast-track legislation would simply
necessity for U.S. leadership in the global
labor, the pro-trade business community
give the president the authority to negoti-
economy.
But no matter how the argument is
has more resources. And there would be
ate trade agreements, whether bilateral
deals with Chile and South Africa or sec-
framed, it splits the Democratic party. It's
THE WALL STREET JOURNAL./NBC NEWS PCLL
consequences if fast-track fails. Trade ne-
toral pacts in areas like agriculture and fi-
a little bit of the New Democrat VS. Old De-
gotiations would continue without the
nancial services. These treaties then
mocrat schism. But more than that, it re-
temptuous of Mr. Gephardt's motives,
U.S.; only recently Canada cut a deal with
would be brought back to Congress for up-
flects different constituencies-the more
charging he only advances thinly dis-
Chile.
or-down approval but couldn't be amended
traditional and usually industrial districts
guised protectionist pitches that the presi-
Moreover, as the president showed in
dent finds unacceptable.
the recently completed budget deal,
or changed.
VS. higher-tech, cutting-edge sectors of the
Without fast-track, any trade pact
The administration plans an allout
when he needlessly caved in on some tax
economy.
would become a special-interest bazaar in
These splits will be symbolized today.
push. It has hired an outside lobbyist todi-
provisions in order to get a quick deal-
the legislative branch. When Congress
rect the campaign; the top cabinet officials
to clear the decks for fast-track this
The president will meet with several dozen
started to reject portions of trade agree-
House Democrats at the White House to
will be actively engaged this fall: and It
fall-he often prefers dealing with Re--
ments a quarter-century ago, this proce-
pitch fast track. At about the same time, a
has enlisted two highly resourceful former
publicans. Thus, the likely final resolu-
dure was necessitated. Such authority ex-
members of congress, Republican Vin V/e-
tion-another second-term victory for the
few hundred yards away in the AFL-CIO
ber and Democrat Tom Downey. a close
White House that virtually assures con-
pired several years ago, and without it,
building, the top labor chieftain, John
Sweeney, will convene a meeting of lead-
confidant of Mr. Gore.
tinued GOP control of the House in
any major trade deals are impossible.
ing legislative, political and media offi-
The battle will be waged first in the
1998-is a bargain to which Bill. Clinton
As right as It is on the merits, the poli-
tics of fast-track are dicey. The opposition
cials from major unions to map an anti-
House, where Republicans publicly insist
and congressional Republicans are grow-
will Include labor, many environmental-
fast-track strategy.
the White House must deliver 90 Democ-
ing accustomed.
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DONALD F. TERRY
Manager
Multilateral Investment Fund
INTER-AMERICAN DEVELOPMENT BANK
1300 New York Avenue, N.W.
Tel. (202) 942-8211
Washington, D.C. 20577
Fax.(202) 942-8291
11-04-97 11:58AM
TO 94562215
P002
Congress of the United States
Whashington. DC
REMARKS BY SENATE DEMOCRATIC LEADER TOM DASCHLE
ANNOUNCING HIS SUPPORT FOR "FAST TRACK" TRADE AUTHORITY
MONDAY, NOVEMBER 3, 1997
Today is an historic day in American trade policy. Never before has an
American President submitted, with his request for fast track negotiating authority,
a formal statement of his broader foreign economic policy agenda.
Never before has a President spelled out in such detail what his
administration will do to ensure that trade expansion raises living standards for the
greatest number of Americans.
This "statement of executive initiatives" addresses concerns that I, and other
Democratic Senators, have raised -- particularly concerns about worker rights and
environmental protection.
On the basis of these initiatives, as well as separate assurances I've received
on agricultural trade, I am announcing today that I will support the President's
request for fast track trade negotiating authority.
I want to congratulate the Administration for the tremendous amount of
work they have put into this unprecedented document
The days when negotiating trade agreements meant simply coordinating
tariffs and quotas are gone. Today, we re stitching together the fabric of entire
economies. This broader scope of negotiations demands a broader strategy for
negotiations. That's what this document sets out.
The statement contains a concrete strategy to improve workers' rights, and
protect the environment, in developing countries at the same time we negotiate
J*
trade agreements with them.
Raising these standards to our level and avoiding a race to the bottom will be
an explicit objective of this Administration, particularly when we're negotiating free
trade agreements.
First, the Administration has pledged to take specific steps to shine a brighter
public spotlight on the labor rights and environmental conditions and practices in
these countries. I believe that sunshine can be a powerful disinfectant in this regard.
11-04-97 11:58AM
TO 94562215
P003
The Administration will conduct a benchmark assessment of our future FTA
partners in the areas of labor, the environment, the legal system, and exchange rate
policy. And the Labor Department will issue annual reports on the labor rights
conditions in our existing FTA partners.
Congress and the American people will be able to judge for themselves
whether our trading partners are living up to their end of the bargain on workers'
rights and the environment.
Second, the Administration has pledged to try to reform world trade and
financial institutions to take better account of labor and environmental concerns.
The Treasury Department will press the World Bank to create a labor rights
department in order to increase the emphasis on worker rights in developing
nations
On the environment, the U.S. will push to open up the World Trade
Organization's "dispute settlement" process to input from environmental groups.
And we will seek to have the WTO convene an Eminent Persons Group on
the environment to consider whether some of the CATT's rules need to be changed
to better accomodate national environmental policies.
Also, we will undertake a set of border clean-up initiatives to protect the
health and safety of Americans living near our nation's borders, and to protect our
natural environment along the borders. These will be announced later this week,
and Senate Democrats consider them very important.
In closing, this statement proves -- in black and white - that this
administration understands trade agreements must raise living standards.
Expanded trade is the future. America cannot turn its back on that future. Neither
I
can we turn our back on our history, and our deep commitment to workers rights
and environmental protection.
Once again, I want to congratulate the Administration on taking this historic
step.
###
not amend them. Foreign nations won't
Pledges Made
agree to negotiate broad trade agreements
unless the U.S. has fast-track authority,
because of fear Congress would rewrite the
To Democrats
deals. The procedure is controversial be-
cause activists want to use negotiations to
bolster labor and environmental standards
On Fast Track
and have them enforceable by trade sanc-
tions. But the fast-track proposal, crafted
by the administration to win approval in a
Republican Congress. wouldn't allow U.S.
By BOB DAVIS
negotiators to have such provisions ap-
Staff Reporter of THE WALL STREET JOURNAL
WASHINGTON - Trying to W00 hesi-
proved under expedited congressional pro-
cedures.
tant Democrats to vote for fast-track trade
negotiating authority, the White House
The Senate is expected to vote on fast
pledged to try to bolster labor and environ-
track and approve it this week; in the
mental standards outside the traditional
House, where opposition is much tougher,
trade mechanisms.
a vote is scheduled for Friday.
Under the administration's plans, the
The agenda calls for enlisting such
U.S. would prod the World Trade Organi-
international institutions as the World
zation in Geneva to open its arbitration
Bank and the International Monetary
panels to public scrutiny and allow activist
Fund. But it falls well short of the demands
groups to submit legal briefs. The adminis-
of labor and environmental groups, which
tration made similar proposals in Decem-
want to use trade negotiations - and sanc-
ber 1993, when it negotiated the WTO's
tions - to promote those standards. More-
creation. The White House also will pro-
over, none of the proposals include en-
pose that the WTO empanel a group of
forcement provisions; and some have
experts to study environmental issues.
been made by the administration before-
Additionally, the Treasury secretary
only to be rejected by other nations, or
would press the Inter-American Develop-
even ignored by the White House.
ment Bank to examine environmental is-
John Audley, trade analyst for the
sues and increase direct lending for envi-
National Wildlife Federation, a moderate
ronmental projects.
environmental group that backed the
On the labor-rights front. the adminis-
North American Free Trade Agreement,
tration plans to regularly review the labor-
said the environmental proposals don't
rights practices of nations that the U.S
improve on Nafta. "We have a chance to do
plans to include in free-trade agreements.
worse" under any trade deal negotiated
It would also ask the World Bank to
under fast track, he complained. His or-
establish an office to analyze labor issues,
ganization and other environmental
and promote a World Bank-International
groups that supported Nafta are opposing
Monetary Fund conference en labor stan-
fast track.
dards.
The administration, aiming to shore up
Separately, the administration an-
support among liberal Democrats, re-
nounced its support for a number of agri-
leased its agenda as part of its negotiations
cultural initiatives. The U.S. would annu-
with Sen. Minority Leader Tom Daschle.
ally identify countries that. citing safety
For example, it plans to release shortly a
concerns, block exports of U.S. agricul-
proposal to boost spending for worker
tural goods. In cases where the U.S. de-
retraining by about $90 million a year. The
cides the moves are unwarranted. it could
South Dakota Democrat said the propos-
invoke trade sanctions. In particular. pork
als "represented a concrete strategy to
and beef producers complain that Euro-
improve workers rights and protect the
pean and Asian countries block their prod-
environment.
ucts because of claims that chemicals
Under fast-track rules, lawmakers
injected into livestock make the meat
agree to approve or reject trade pacts, but
unsafe.
THE WALL STREET JOURNAL TUESDAY, NOVEMBER 4, 1997
e Glue
it not for the superhuman
wages on a spare. So she must wash ano or job training that might help her move
endale's welfare office. the
iron her shirt after every shift. Waking a into a better job. Despite repeated re-
em that allows recipients to
3:30 a.m., she dresses her children and quests, the women say. Winn-Dixie refuses
Id jobs might quickly crash. In
downs breakfast before catching her ride, to coordinate their shifts (the supermarket
$. it is welfare workers who
usually at 4:30 for a 6 a.m. start.
manager and a spokesman for Winn-Dixie
openings. prep people to apply.
For those on later shifts, the morning Stores Inc., based in Jacksonville. Fla.
m to job interviews and help fill out
wait is cold and dull. At 6, the only other declined to comment).
rk. Welfare workers also coordi-
store open in the mall is Wal-Mart. So
There is another option for women like
ansport and day care. and often
mostly the women sit in plastic "Gracious
Ms. Campfield: moving to where the jobs
Living" lawn chairs, beside bags of lawn
are. South Carolina and several other
people to work themselves when
blems arise.
manure piled in front of Winn-Dixie. On a states offer almost $1,000 in relocation
recent day, even this meager perch is assistance to welfare recipients who move
The welfare office even acts as an
denied them. "These chairs are for sale, for work. But a handful have taken advan-
formal labor arbitrator. When several
not for sitting," a supervisor explains,
tage
of
the
program.
Asked
why.
most
in
lotel housekeepers were recently at risk of
stacking the seats beside a sign saying
Allendale cite high rents in the city, con-
losing their jobs because they worked too
"Sale: two for $10."
cerns about raising children there and
slowly and didn't make beds to supervi-
sors standards, welfare officials traveled
When Ms. Campfield gets off, she fills
fears of being laid off far from the safety
some of the seven-hour wait with a long
net, however meager, provided by friends
to Hilton Head and spent a day coaching
lunch at Taco Bell and a stroll past chain
and family. "I don't know anybody in
the women. They kept their jobs. "We've
been everything to people for SO long that
stores she has gazed at a hundred times
Beaufort and they don't know me, except
they don't know any other way," says Lee
before. Earning only about $150 a week,
for my name tag," Ms. Campfield says.
Harley-Fitts, who heads Allendale's De-
she can't shop for much but essentials (her
It is 8:30 p.m. when the last of the
$200-a-month welfare stipend is being
Winn-Dixie workers finishes her shift.
partment of Social Services.
gradually reduced the longer she stays on
Heading home, the car-poolers find them-
Like many officials nationwide, Ms.
the job).
selves stuck at a railroad crossing as a
Harley-Fitts is both pleasantly surprised
by the pace of job placement so far and
At age 23, Ms. Campfield is a fourth-
long. slow freight train rumbles past. In
cautionary about the future. Many of Al-
generation welfare recipient who went on
the five minutes before the caboose ap-
lendale's new workers are in service jobs
the system and dropped out of school
pears, all four women fall asleep, despite
the roar of the train and the hip-hop music
subject to seasonal swings. With the quiet
when she had her first child as a teenager.
winter months approaching, workers'
Like many others in Allendale who are
blaring on the car radio.
hours in Hilton Head are being cut. The
moving from welfare to work, she is grate-
Reaching Allendale at 10, Ms. Camp-
Radisson's Ms. Riddle says she will lay off
ful for the change. "I'm not lazy, but I just
field collects her sleeping kids and heads
never tried to strive," she says. Now, at
home for the few hours until the cycle
three quarters of her housekeeping staff
come Thanksgiving, and many other em-
the bakery, she has discovered a talent for
starts again. "See y'all tomorrow," she
says, climbing out of the car.
ployers expect to do the same.
decorating and feels better about herself.
"You mean later tonight, girl," one of
Even more worrisome are welfare re-
"When I'm in there, I know what to do. I
the women responds.
pients who haven't yet found work. "The
don't just sit around being bored." Best of
Ms. Campfield smiles wanly, hoists her
ones that are willing and able to work are
all, she is starting to feel some financial
kids and walks away in the moonlight.
mostly in jobs by now," Ms. Harley-Fitts
independence and has made layaway pay-
says. Those remaining on the rolls present
ments on a few toys and clothes-items she
visits every day after work. "I don't have
a much tougher challenge. "A lot of people.
in the back of their mind they're thinking.
to be begging people for nothing any-
'We'll wait it out and some other program
more," she says, proudly fingering a pair
of kids' jeans.
will come along to help us.
Tightening Belts
A Desire to Do Better
That is unlikely in South Carolina,
But now that she is accustomed to a
which has some of the nation's toughest
small weekly paycheck, Ms. Campfield
new rules, including an October 1998 cutoff
wonders if she can improve on her mini-
for many now on the rolls. Nor can Allen-
mum-wage job and how long she can hang
dale's welfare office indefinitely provide
onto that. She has tried to find part-time
the hand holding it does to help keep people
work elsewhere in the mall, to fill the long
in jobs. Ms. Harley-Fitts draws on a discre-
wait, but Winn-Dixie changes her schedule
tionary budget to assist with transport and
each week. And between her schedule and
other support. But these funds are limited
commute, there is no time for night classes
and likely to disappear. One Radisson
housekeeper - an employee-of-the-month
winner-has had to give up her job because
the welfare office could no longer provide
transport for her evening shift.
Also at risk are daily car pools like the
one carrying workers to the Winn-Dixie in
Beaufort. Even if the car pool continues, it
is unclear how long the women who use it
can endure their schedule. "I'm like a
robot," Georgeann Campfield says, "leav-
ing home and getting home in the dark and
doing nothing but work or getting ready for
work."
Living to Work
The preparation begins as soon as she
gets home from work. Winn-Dixie provides
employees a single work shirt, and Ms.
Campfield is reluctant to spend a day's
11/03/97
18:05
202 623 3612
IDB U.S. OFFICE
001
INTER-AMERICAN DEVELOPMENT BANK
Washington, D.C. 20577
EXECUTIVE DIRECTOR
United States
FACSIMILE
(3 pages)
TO: Mack McLarty, Special Counselor to the President
FAX: 456-2215
FROM: L.Ronald Scheman
R
TEL: 202/623-1031
FAX: 202/623-3612
November 3, 1997
The attached memo probably contains everything you need in the category of ideas. I am
having a brief list of major projects in the field put together and will have it to you first thing in
the morning.
11/03/97
18:05
202 623 3612
IDB U.S. OFFICE
002
INTER-AMERICAN DEVELOPMENT BANK
MEMORANDUM
FILE CLASSIFICATION: labor7.1
DATE: July 29, 1997
TO
:
Bill Schuerch, DAS, Treasury
CC
:
David Lipton, Assistant Secretary
Mack McLarty, Counselor to the President,
Amb. Charlene Barshefsky, USTR
Amb. Jeffery Davidow, Assistant Secretary
Andrew Samet, Assistant Sec. of Labor
Amb. Harriet Babbitt, U.S. Representative
Amb. Richard Brown, Coordinator
FROM
:
L. Ronald Scheman, US EXD
SUBJECT
:
An Inter-American Labor Initiative
We have begun to explore at the IDB a new initiative in the field of labor to strengthen
the capacity of Labor Ministries of the Americas to conform with ILO standards and to improve
their professional capacity to better analyze the economic implications of the openings to
globalization and privatization in the region. The initiative resulted from an idea presented by
Amb. Charlene Barshefsky in a meeting with Pres. Iglesias several weeks ago.
Background:
The nations of the Americas have long advocated fair labor standards to protect workers,
enhance productivity and improve competitiveness. Most of the American nations have ratified
key ILO standards and have on their books numerous laws to protect labor. The institutional
capacity to give substance to these laws and enforce the minimum standards, however, is weak.
In short, the issues affecting labor have considerable support in their own right among the
American nations but have languished as labor ministries were ill endowed to meet their
obligations.
Labor issues will increasingly affect the substance and the tone of the dialogue between
the United States and Latin America as we move forward with the FTAA negotiations. However,
labor issues affecting labor standards and workers rights are far more than trade issues. They
merit serious attention in their own right. Considering that the Latin American governments have
already embraced ILO standards and are theoretically aware that sound labor laws and practices
are in their interests (viz.: child labor exists side by side with high adult unemployment), a
11/03/97
18:05
202 623 3612
IDB U.S. OFFICE
003
2
program to strengthen the professional capacity of labor institutions and related inter-America
fora should find a ready audience in the Americas.
A major obstacle to serious negotiations in many of the countries of the Americas is lack
of professional research on labor issues. Labor ministries have inadequate administrative and
enforcement capability; labor unions have not had the high level economic analysis that would
enable them to analyze and define their own best interests. The lack of such professional
research capability, however, has not hindered them from taking positions on the issues of trade,
privatization, etc. The objective of the new program would be to strengthen their capacity to
address issues such as:
*
Productivity, safety standards and competition
Long and short term costs and benefits of globalization and privatization (yiz.
the El Salvadorean labor unions recently approached the IDB to obtain financial
help to enable them to buy equity in the privatized power company.)
Privatized pension funds, including direct participation in the funds (Pres.
Sweeney of the AFL-CIO met with Pres. Iglesias last week specifically to
express strong interest in this).
Issues of transparency and corruption.
Immediate Objectives:
The objective of a renewed inter-American labor program is to give the issues higher
profile on their merits and help us achieve our ends of improving labor standards, addressing
inequality in income distribution, and giving labor a substantial forum of its own. This task
requires both policy direction, which is already integrated into the OAS framework, and
technical support and resources, which the Inter-American Development Bank can provide.
For this purpose we could give consideration to several inter-related approaches:
A reinvigorated Inter-American Labor Conference linked to the Summit.
Separate hemisphere wide agreements both on labor standards on their merits
and divorced from the trade negotiations.
A tri-partite Committee of the OAS, IDB and ECLAC, as we are currently doing
in trade matters, to act as the catalyst, involving the IDB in research and specific
programs to strengthen labor ministries while the OAS, which already has a
special committee of labor ministers, could address policy issues.
A high level task force of private sector and labor leaders to address a common
strategy for fair competition and harmonization of labor standards and benefits.
Nonpartisan think tanks to engage in research and bring together the various
parties.
11/03/97
18:06
202 623 3612
IDB U.S. OFFICE
004
3
Officials of the Department of Labor (Assist. Sec. Samet) and the AFL-CIO (Stan
Gacek of their international division) have already approached this office on related topics. I
have discussed it with President Iglesias following our meeting with Amb. Barshevsky and he is
enthused about the concept. If Treasury is favorable, the next steps would be to meet with
officials of the Department of Labor and USTR to determine a strategy so that we can discuss it
more substantively with Pres. Iglesias. I would suggest that such a meeting be convened by the
Department of Treasury.
Fast Tast hack
THE WHITE HOUSE
WASHINGTON
November 7, 1997
Mr. Richard C. Bartlett
Mary Kay Holding Corporation
4300 Westgrove Drive
Dallas, TX 75248
Dear Dick:
Your very thoughtful letter of October 30th is received, noted,
and appreciated. Please know it was my pleasure to be with you
and your Direct Selling Association colleagues here in
Washington. Neil Offen represents your organization in an
effective and capable manner, and I was delighted to have an
opportunity to discuss our Administration's commitment in Latin
America and, most specifically, the pending fast-track
legislation. Your comments were right on the mark in that
regard, and please know all of us, including the President, are
deeply grateful for your efforts.
Mary Kay is a singular company and has been extraordinarily
successful. I wish you continued success, and please let us know
when we can help you, particularly with your efforts in Latin
America.
Again, thank you for your very thoughtful letter and kind words.
I enjoyed being with you.
Personally,
Mid WILA
but Neil offen
bcc: Andrew
P.Stive
New off
New
Richard C. Bartiett
Vice Chairman
October 30, 1997
The Honorable Thomas McLarty
Counselor to the President and
Special Envoy for the Americas
Executive Office of the President
1600 Pennsylvania Avenue, N.W.
1st Floor West Wing
Washington, DC 20500
Dear Mack,
I enjoyed meeting you the other day at table with Neil Offen, et al! More than
anything, I was impressed and encouraged to find a person of your talents in
government service. Only that we could clone you!
Your remarks about South America were most enjoyable and timely to my company,
as we are opening other markets in South America. Moreover, the Administration's
strong support for "Fast-Track" is well founded and certainly in the country's best
long-term economic interests. Strategic trade blocks are the norm in the world, and
America cannot be left behind as these blocks develop. The United States must define
its strategic economic interests as it moves into the 21st century. Latin America is a
natural.
On behalf of Mary Kay Holding Corporation, I continue to press the issue with those
Democrats with whom we have a close relationship. Apparently, not enough
Democrats will vote for "Fast-Track" to ensure its passage. In fact, letters have been
sent to all members of the Texas delegation and visits made to key members of the
delegation. But I hold out no hope for Martin Frost. He is in thrall to union interests.
Again, thanks for making the Direct Selling Association and our industry a part of
your schedule.
Dob Richard C. Bartlett
RCB/lfs
Mary Kay Holding Corporation
4300 Westgrove Drive
Dallas, TX 75248
972.713.5045
Fax 972-713-5062
East Track
AmericanBusinessConference
November 5, 1997
The attached letter urging support of
legislation extending fast track trade
negotiating authority was sent to all
members of the U.S. House of
Representatives today.
I thought you would find it of interest.
Barry Rogstad
N1/
much manys was
IN
4"
Barry K. Rogstad
President
3
wood " weed.
IIIII
THIS LETTER WAS SENT TO EVERY MEMBER OF THE HOUSE.
AmericanBusinessConference
1730 K Street. NW Suite 1200
Washington. DC 20006
(202) 822-9300
FAX (202) +67-+070
November 5, 1997
The Honorable Neil Abercrombie
U.S. House of Representatives
Washington, DC 20515-1101
Dear Congressman Abercrombie:
On behalf of the members of the American Business Conference (ABC), chief executives of fast-
growing, midsize American companies, we write to ask you to support legislation extending fast-
track trade negotiating authority.
You may have already heard from one or another ABC member on this issue. To our way of
thinking, fast-track authority is of sufficient importance for us to revisit the matter in a letter.
In a speech before the American Society of Newspaper Editors, President Clinton correctly
observed that the emergence of a world marketplace offers the United States "the greatest
opportunity for prosperity we have known."
Grasping that opportunity is primarily a function of the skill and will of America's managers and
workers, supported by a first-rate educational system and a fiscal environment conducive to saving
and investment.
At the same time, however, the expansion of a transparent, rules-based trading system, achievable
only through tough and intelligent negotiation, remains an indispensable element for our future
success in the global market.
Without fast track, however, we cannot see how such negotiations will ever bear fruit. As
Ambassador Charlene Barshefsky said at a recent hearing before the Ways and Means Committee,
the absence of fast track authority "is the single most important factor limiting our capacity to
open markets and expand American exports and trade opportunities."
With so much at stake, there is no excuse for permitting this grave problem to persist. We need fast
track now.
Providing a strong economic future for our citizens is not a partisan matter. It is a national priority.
We hope that you agree and that you will stand with other Congressional leaders on both sides of
the aisle in support of fast-track legislation.
Sincerely,
DickSynon
Barry Logstest
Richard Syron
Barry K. Rogstad
Chairman & CEO
President
American Stock Exchange
American Business Conference
& Chairman, American Business Conference
Fast hack
C.O.M.E.T.
COALITION FOR OPEN MARKETS AND EXPANDED TRADE
c/o VALIS ASSOCIATES, 1700 PENNSYLVANIA AVENUE, N.W., SUITE 950, WASHINGTON, D.C. 20006
202/393-5055
October 30, 1997
Memorandum For: The Honorable Mack McLarty
I this hope pt
The Honorable Maria Echaveste
Best
3
From:
Wayne Valis wayne
Subject:
Fast Track Activities: Support for the President
Pursuant to our recent discussions and meetings, the Coalition for Open Markets and
Expanded Trade (COMET) has been actively supporting fast track negotiating authority.
Our coalition has worked closely with Chairman Bill Archer, Subcommittee Chairman Phil
Crane, Ranking Member Bob Matsui, and others secure small business, pro-fast track witnesses at
the Ways and Means Subcommittee on Trade's hearing on fast track. In addition, we are directly
contacting undecided Members, urging them to vote for traditional trade negotiating authority. We
have also circulated the enclosed "Action Alert" newsletter to every Member of Congress, the
media, and key policy makers in Washington.
Founded in 1985, COMET represents a wide range of interests including exporters,
consumers, manufacturers and others. The coalition supports international agreements that
eliminate barriers to international trade. In the past several years, COMET has been active on
NAFTA, GATT, MFN for China and other market-opening agreements, working with key
Congressional and Executive Branch officials.
Thank you for your continued leadership on international trade. I look forward to continuing
to work together in the future.
Enclosure
WAYN' -
Th Ark - you You your
COV timel leades beg nd
Disput
you Are an nble professional
Al L grod first, Personary
Fast Track
THE WHITE HOUSE
WASHINGTON
November 4, 1997
Mr. John Smith
General Motors Corporation
3044 West Grand Boulevard
14th Floor
Detroit, MI 48009
Dear Jack:
As always, it was good to see you at our APEC luncheon today, as
well as seeing you and Lydia at the China State Dinner.
Your leadership in getting a strong letter to the Hill was
certainly noted and appreciated, and I think it will have a
positive impact.
The count is close, particularly in the House, but I think we
have a real shot, thanks to the President's commitment and strong
support from people like you.
Personally,
Weel
(After, shove
I dictured the) Note
Service out just occured - String
vote win help - Clearly shows what's
at stable All puns proper pressure of
the House.
Fast Thank
DEPARTMENT OF COMMERCE
UNITED STATES DEPARTMENT OF COMMERCE
International Trade Administration
UNITED STATES OF AMERICA
Washington. D.C. 20230
October 27, 1997
Mr. Mack McLarty
Counselor to the President and Special Envoy for the Americas
The Office of Thomas "Mack" McLarty
Old Executive Office Building - Room 176
Washington, D.C. 20502
Mr. McLarty:
Thank you very much for speaking during the White House portion of the October 22 District
Export Counsel (DEC) Fast Track briefings in Washington, D.C. The feedback received from
DEC members has been extremely positive. Your presentation of Fast Track issues was insightful
and valuable. As indicated from the number of questions posed, there was strong interest in the
Fast Track initiative. I am confident that the DEC members will take the knowledge gained from
this event back to their local business communities and disseminate it.
Given the short lead time, the large number of DEC members that attended this event exemplifies
the importance placed on this initiative. DEC member participation demonstrated the dedication
that they have to Fast Track, the Department of Commerce and, specifically, the Office of
Domestic Operations in the Commercial Service.
Once again, thank you for speaking at the White House portion of the October 22 DEC Fast
Track briefings. I look forward to working with you in the future.
Sincerely,
Daniel J. Mcl Aughlin
Deputy Assistant Secretary
Office of Domestic Operations
Pleasure mide pl importut wilstones
M.D
DEPARTMENT OF COMMERE
TRADE
Fast Track
THE WHITE HOUSE
WASHINGTON
October 10, 1997
Mr. Ken Duberstein
The Duberstein Group
Suite 350
2100 Pennsylvania Avenue, NW
Washington, DC 20037
Dear Ken:
Your "America First," i.e., counter to Pat
Buchanan's message, has been discussed and
advocated. You are on point, as usual,
and I believe we will incorporate much of
the thinking we discussed.
Personally,
my
Fast Track
THE WHITE HOUSE
WASHINGTON
October 9, 1997
MEMORANDUM FOR VICKI RADD
FROM:
MACK McLARTY
SUBJECT:
KEN DUBERSTEIN
Ken Duberstein and I visit on a regular basis and, of course, he
is a strong supporter of fast track. Ken has a splendid
political touch, as you know, and has an idea which I think is
worth considering. While most positive about our efforts, he
feels that fast track and related trade has not been put on an
"America first" basis in a clear and persuasive way to achieve
broad public understanding. He sent me the attached commentary
by Patrick Buchanan as an example of his reasoning. He feels we
can make very strong arguments about how fast track and related
trade are putting America first.
I would suggest that you or Jay call Ken directly and discuss
this matter with him. It is worth pursuing and considering. His
number is 728-1100.
Onward.
may
Attachment
Desk
OCT 07 'CA 12:21PM
PATRICK BUCHANAN
Fast track and the
But when they look to conserva-
tives, they find them embracing all
crisis on the right
of Bill Clinton's Wilsonian glob-
aloney - from nation building in
Bosnia, to extending NAFTA to
Tierra del Fuego, to "constructive-
0 you trust Bill Clinton?
was shepherded by House Speak-
D
ly engaging" Christian-bashing
That is the question both
er James Madison, who himself
Chinese communists, to burbling
parties will answer in the
imposed America's first "protec-
on about "open borders," to paying
vote on "fast track," by
tive" tariff in 1816 to defeat British
"back dues" to the United Nations,
which Congress unilaterally sur-
dumping after the War of 1812.
to pumping out foreign aid to for-
renders its right to amend any new
That tariff was sponsored by
eign ingrates, to extending NATO
trade deal Bill Clinton may cut.
Henry Clay, father of "the Ameri-
guarantees to Turkmenistan.
In saying "по" to fast track, the
can System," and was supported by
Woodrow Wilson would have
Democratic Party has said it does
ex-Presidents Thomas Jefferson
loved these "conservatives."
not totally trust Mr. Clinton: it wants
and John Adams, who, in their
The truth is, many of today's
to retain the right to amend NAFTA
maturity, had become protection-
"conservatives" are not really con-
III to protect workers. In saying
ists. In 1816, Jefferson came close
servatives at all. They are arriv-
"yes," the Republican Party is say-
into branding free traders traitors to
istes, impostors, right-wing imper-
ing: Whatever Bill brings home is
the republic.
sonators from the failed campaigns
just fine with us.
Clay was the idol of Abraham
of Hubert Humphrey and Scoop
Now, this seems paradoxical, but
Lincoln, under whom tariff rates
Jackson, ideological boat people
actually, it is not.
reached 47 percent Lincoln made
picked up at sea by the Old Right,
For many modern Republicans,
the GOP the party that protected
which should have dumped them
belief in free trade is a dogma of
U.S. manufacturing and the high
ashore at the first port of call,
wages of American workers. In the
instead of letting them crash at the
Republican era from 1865 to 1913,
Reagan Transition Office.
growth averaged 4 percent a year,
Americans today
Many of the think tanks and mag-
azines that presume to speak for
want their leaders to
and U.S. workers became the most
conservatism are fairly crawling
put their own
prosperous in all history. Under
with Great Society rejects who
William McKinley of the McKinley
ridicule the traditions of America's
country first; they want
Tariff, economic growth soared to 7
greatest conservatives as "protec-
tionism" and "isolationism," as they
percent.
to hear again the
Warren G. Harding and Calvin
secretly burn their little incense
Coolidge raised tariffs to 40 per-
sticks at the altars of Franklin D.
stirring accents of an
cent, slashed Wilson's income taxes
Roosevelt, Harry Truman and John
authentic patriotism
and ignited the Roaring '20s - 7
F. Kennedy.
percent growth again!
As for today's Republicans, many
and a new American
Comes. the retort: What about
are utterly oblivious to who they are
Ronald Reagan? Well, while Ronald
and where they came, but I can tell
nationalism.
Reagan was a free trader, his patri-
you where they're going.
otism and nationalism were most
visible in his persona and role as
commander in chief in a Cold War
Patrick Buchanan is a national-
faith. Most Americans may say the
North American Free Trade Agree-
that is now history. And while recit-
ly syndicated columnist.
ment has hurt the country, yet the
ing the free-trade catechism, Mr.
GOP will vote "yes" every time -
Reagan had the heart of an eco-
out of ideological conviction.
nomic nationalist, unapologetically
To discover the roots of this con-
slamming import quotas on steel,
viction is to understand why the
machine tools and Japanese cars,
conservative movement is collaps-
and using a 50 percent tariff to save
ing, for belief in free trade is not a
Harley-Davidson and the all-Amer-
conservative idea at all. Its roots are
ican Harley "hog."
not even American. It was part of
The Republican Party lost the
the ideological baggage of that
White House because it lost its pop-
Utopian Woodrow Wilson who
ulist-nationalist appeal. That is the
made global free trade one of his
crisis of conservatism. It is trying
"Fourteen Points," and its great
to reconnect with Middle America
apostles were 19th century Euro-
and to tap into the deep springs of
peans, none of whom was a conser-
nationalism - with a globalist ide-
vative, most of whom were rabidly
ology of free trade that sacrifices
anti-nationalist.
the national interest to the "global
Who were America's great antag-
economy."
onists of free trade?
Americans today want their
Well, the second bill signed into
leaders to put their own country
law by George Washington was the
first; they want to hear again the
Tariff Act of 1789, crafted by
stirring accents of an authentic
Alexander Hamilton, the greatest
patriotism and a new American
nationalism.
economic nationalist of his age. It
Tast hank
tast
Ence
Current
years
CAPITAL JOURNAL
T
HE ADMINISTRATION would, in-
deed, like to strike a free-trade
BY GERALD F. SEIB
agreement with one Latin Ameri-
can nation, Chile. Yet Chile isn't some
low-wage knockoff of Mexico, but home
Myth and Reality
of a modernized, high-tech economy.
And after Chile, administration aides
are far more intrigued with the thought
Sometimes Collide
of making free-trade agreements in
Asia, or with Australia, New Zealand or
On the Fast Track
South Africa, than with any Central or
South American nations.
Beyond that, a top use of fast track
would be to negotiate agreements at the
HEN PRESIDENT Clinton sat
W
World Trade Organization to knock
down a few days ago to talk
down barriers that stop Americans from
trade with congressional Demo-
selling products to foreign governments,
crats, they raised their now-standard
or agricultural products to foreign con-
demand: In negotiating new trade
sumers.
pacts, they said, the U.S. should force
The second important use of fast
other nations to agree to improve their
track would be equally America-
labor and environmental standards.
friendly: negotiating more international
In reply, Mr. Clinton aptly illumi-
agreements to knock down tariffs on
nated the gap between wishes and real-
specific products where the U.S. is
ity in this fall's
highly competitive, including com-
great trade debate.
puters, semiconductors and telecommu-
"Imagine if you
nications. Billions of dollars in Ameri-
were the head of an-
can exports are at stake in these two
other country," he
initiatives. "These are the big-ticket
said. "And the pres-
items," says Charlene Barshefsky, the
ident of the U.S.
U.S. Trade Representative.
came to you and
Still, if any bilateral free-trade deals
said 'I'll make you a
are struck, it is legitimate to ask
deal: Let us rewrite
whether they should include demands
all your labor and
for higher labor and environmental
environmental
standards. Nobody states the case for
laws, and in return
American moral leadership in these
you send us all your
areas more passionately than House
money to pay for our imports.
Democratic Leader Richard Gephardt.
Then, Mr. Clinton concluded, imag-
ine your next visitor was the president of
UT CAN SUCH changes really be
France, offering the same goods with no
conditions. Who would get the trade?
B
compelled in trade deals? Con-
sider if the tables were reversed.
That exchange captures the flavor of
If New Zealand, which has more strin-
the debate over Mr. Clinton's request for
gent clean-air standards than the U.S.,
"fast track" authority to negotiáte new
demanded tougher American environ-
trade agreements. On both the right and
mental laws as the price for a trade
left, the arguments against fast track
agreement, that demand would be re-
(many well-intentioned) often are un-
jected out of hand by Congress and by
dermined by unrealistic expectations or
unions interested in saving jobs in
simple misunderstandings.
smokestack industries. Will other coun-
This debate goes live today when Mr.
tries respond differently?
Clinton speaks to AFL-CIO labor lead-
Which isn't to say that labor and the
ers, who are viscerally opposed to fast
environment should be ignored. They
track. That isn't a surprise. What is
shouldn't. Ultimately, lax labor and en-
surprising is how much Republican
vironmental standards become compet-
THE WALL STREET JOURNAL WEDNESDAY, SEPTEMBER 24, 1997
opposition has materialized, and how
itive advantages, which is a trade issue.
little clear public support has emerged
The trick is deciding how to address
for fast track at a time when internation-
them. The administration's compromise
alist policies have helped fuel a five-year
is to include in trade deals labor and
economic boom. The explanation must
environmental issues that directly affect
lie in the myths that have arisen around
trade, and to handle others through
the fast-track idea.
existing international organizations.
Basically, fast track gives the presi-
Here's where Republicans become
dent (Clinton, Bush or whoever) the
unrealistic. Many don't want trade deals
power to negotiate a trade deal and then
to include any mention of labor and
present it to Congress for an up-or-down,
environmental issues, even those that
unamended vote. Many critics assume
directly affect trade, even though GOP
that Mr. Clinton wants this power so he
leaders in the past have proposed that
can cut a swath of free-trade deals with
step and more.
cheap-labor countries across Latin
In turn, Republicans then complain
America, as he did with Mexico in the
that the Clinton administration isn't
North American Free Trade Agreement.
delivering enough Democrats to support
Yet that is precisely not where U.S.
fast track, knowing that the only way to
trade policy seems headed right now.
deliver more Democrats is to make a nod
toward their environmental and labor
concerns. This is where trade debate
becomes political posturing. If every-
body can get beyond that point, there
can be serious debate and odds are
good that fast track will carry the day.
POLITICS & POLICY
White House Operators? A Phone-Call Inquiry
Into Clinton, Gore May Prove Murky, Complex
By PHIL KUNTZ
Well. has anybody ever been prose-
cuted for this?
matter, such as the phone calls, can bal-
Staff Reporter of THE WALL STREET JOURNAL
WASHINGTON - It has come to this:
No. The CRS's Mr. Maskell, in his
loon into a virtually limitless inquiry. The
report on the matter. says he could find no
independent counsel formally would be
The president and vice president of the
U.S. may soon be subjected to the white-
such cases. He concludes the department's
appointed by the same special three-judge
hot scrutiny of an unfettered special prose-
"apparent practice" is to ignore them. The
panel that picked Kenneth Starr and the
cutor because they made fund-raising tele-
department "has appeared to indicate
other. counsels now probing Clinton offi-
that, as a practical matter it looks
cials. That panel also frames the counsel's
phone calls from the White House that
upon the law in its traditional historic
jurisdiction, based on advice from the
would have been perfectly legal if placed
from a phone booth across the street.
framework as relating to activities in fed-
attorney general. This is no easy task,
Never mind allegations that the Demo-
eral buildings directed at federal person-
because the prosecutor would need enough
nel.'
leeway to extract cooperation from lower-
cratic National Committee and top White
House officials may have conspired to run
The Justice Department considered
level witnesses: So, for example, some of
roughshod over campaign-finance laws,
and decided against pursuing the best-
Mr. Ickes's activities might have to be
turned a blind eye toward or abetted a
known recent case of this kind. In 1995,
looked at, too.
GOP Sen. Phil Gramm of Texas was quoted
Moreover, the Justice Department has
huge flow of illegal foreign contributions
to stay a mile away from the independent
and allowed a host of possible Chinese
as saying he feels free to place fund-rais-
agents to buy their way into the White
ing calls from his Senate office, as long as
counsel's jurisdiction, SO might shed any
House. Attorney General Janet Reno has
he used his credit card: "I do it wherever I
areas currently under scrutiny that over-
already decided that none of those matters
am." When the Senate Ethics Committee
lap with the telephone calls. This turn
asked him about it, Mr. Gramm denied
into a game of dominoes If the phone calls
fall under the rubric of the law that
requires her to appoint an independent
explicitly soliciting anyone from his of-
from the White House are fair game,
fice.
shouldn't the infamous White House cof-
counsel in certain circumstances to avoid
political conflicts of interest.
The panel dropped the matter with a
fees be looked at, too? And that might
polite warning letter, a person familiar
bring in DNC fund-raiser John Huang and
But that is the way it goes in the
with the matter said, after then-Chairman
a host of other coffee attendees now of
wonderland of Washington. Here's why:
Is it against the law for the president.
Mitch McConnell adamantly opposed open-
interest to federal prosecutors. And that
or the vice president to dial for dollars
ing an inquiry because SO many other
could lead to looking into GOP accusations
from the White House?
senators were probably guilty of the same
that Mr. Huang might have been involved
It depends on the political party of
thing. These days, Mr. McConnell, a Ken-
in China's alleged plan to funnel money
the person you're asking, but impartial
tucky Republican. is threatening Ms. Reno
into the U.S. campaigns. And so on.
experts seem certain: "It is not clear,"
with impeachment if she doesn't appoint
How long can an investigation last?
an independent counsel.
As long as it takes, which can be
writes Jack Maskell, a legislative attorney
years because requests by independent
for the government's Congressional Re-
If the law is never enforced, why is
search Service. in a recent report to Con-
Ms. Reno even considering an independent
counsels to expand their jurisdictions are
counsel?
rarely denied.
gress.
The law makes it illegal to solicit or
Because the law gives her very little
What If Ms. Reno decides the phone
leeway at this stage of her deliberation.
calls don't merit an independent counsel-
receive money for federal campaigns in
federal buildings. But there's no question
Right now she is in the midst of a 30-day
can she appoint one anyway?
that it was originally intended in 1883 to
review of whether she will launch a 90-day
Yes. The law gives her discretionary
protect federal employees from shake-
preliminary investigation into whether she
authority to seek an independent counsel if
should call in an independent counsel.
she determines that there may be a
downs by political bosses. In fact, it has
Ms. Reno can, at this point, only con-
"political conflict of interest" in investi-
gone through several wording changes
since then - none of them intended by
sider whether there is specific and credible
gating somebody
Congress to be substantive, records
evidence of a crime. Clearly, Mr. Gore's
show - and for several years (1948-51) it
public admissions that he made some calls
explicitly applied only to soliciting federal
are specific and credible. President Clin-
employees.
ton insists he can't remember if he did, but
The Justice Department has argued in
testimony from a former aide, Harold
the past that the law applies to soliciting
Ickes, and documents indicating that he
private individuals, a position that, inter-
did seem specific and credible. Mr. Ickes
estingly, was opposed by the Watergate
told Senate investigators on Monday that
Special Prosecutor's Office in 1974. The
he has no recollection of calls by Mr.
Justice Department's last known public
Clinton in 1995-96, but recalls him making a
statement is a 1979 opinion that concluded:
few in 1994 to raise "seft money," which
"Compelling arguments can be marshaled
isn't technically covered by the solicitation
on either side."
ban, for a campaign to promote his health-
Mr. Maskell. however, notes that in
care initiative.
1980 Congress reworded the law slightly
Ms. Reno can't even think about past
department practices yet, though she can
mull whether the conduct of Messrs. Clin-
"It shall be unlawful for any person to
ton and Gore violated the law in the first
solicit or receive any contribution [to
place. During the 90-day investigation, she
influence a federal election) in any
can consider other issues.
room or building occupied in the dis-
If one gets appointed, what exactly
charge of official duties
will the independent counsel investigate?
Any
person
That's the rub: A relatively minor
who violates this section shall be fined
not more than $5,000 or imprisoned
not more than three years, or both.
-U.S. Code
and added an exemption to allow mem-
bers' staff to accept unsolicited donations,
suggesting to him that Congress by that
time believed the law applied to soliciting
private citizens. Moreover, it's common
knowledge on Capitol Hill that members
are supposed to make such calls else-
where.
Can an independent counsel be named
for something SO mushy?
Under the law, Ms. Reno must "comply
THE WALL STREET JOURNAL WEDNESDAY, SEPTEMBER 24, 1997
with the written or other established poli-
cies of the department" in deciding
whether an independent counsel should be
appointed. A Senate report on the law in
1982 explained this means that if the
department "does not, as a matter of
practice, prosecute the alleged violation,"
the attorney general shouldn't move to
appoint an independent counsel.
SOA-
)
MACK MCLARTY
FAST TRACK
September 15, 1997
To: Vicki Radd
We need to follow on Congressman Kanjorski's
ideas. They are good ones and speak
directly to similar concerns expressed by
many Democratic House members.
was
I
Attachment
CC: John Hilley
Susan Brophy
bcc: Nelson
Steve
Dan
Dead
y
THE WHITE HOUSE
WASHINGTON
September 15, 1997
The Honorable Paul E. Kanjorski
U.S. House of Representatives
2353 Rayburn House Office Building
Washington, DC 20515-3811
Dear Paul:
I received your recent missive regarding putting job creation on
a "fast track". Your ideas are thoughtful ones and need to be
pursued with vigilance and vigor. I promise you we will do SO
with the proper people both in the White House and in the
respective cabinet agencies involved, and we will keep you posted
as we progress.
You are a good friend of our Administration's, and you have been
a good friend to me. Please know both are much appreciated.
Personally,
2 essayed 0.5.7
DCC! Nelson
we
Steve
Dan
Desk
FILE
197
13:19
The Honorable
11th Congressional District
Paul E. Kanjorski
of Pennsylvania
2353 Rayburn House Office Building
Washington, DC 20515-3811
UNITED STATES
(202)225-6511
#
#
10 E. South Street
Wilkes-Barre, PA 18701-2297
#
#
(717)825-2200
CONGRESS
Toll-Free Help Line: 00) 222-2346
FAX TO:
MACK MCLARTY
ORGANIZATION:
WHITE HOUSE
FROM:
REP. PAVL KANJORSKI
RECIPIENT'S FAX #: (
) 456-2464
RECIPIENT'S PHONE #: (
)
NUMBER OF PAGES (with cover):
2
DATE: 9/11/97
MESSAGE: MACK - HOPE TO SEE you TONAGHT.
THIS is THE OUTLINE OF THE INITIATIVE WE
DISCUSSED DURING A BREAK IN THE PROCEEDING
AT THE GOUT REFORM COMMITTEE LASK WEEK.
WE NEED TO CREATE MORE GOOD JOBS HEREAT
THE
HOME IN ECONOMICALLY STRUGGLING AREAS
IF WE WANT TO PASS FAST TRACK. Paul
Confidentiality Note: The document accompanying this facsimile transmission may contain information which
is confidential and/or legally privileged. The information is intended only for the recipient. If you are not the intended
recipient, please forward the information to the named individual or entity. Unauthorized disclosure, copying or
distribution of the content of this facsimile transmission by individuals who are not the intended recipients is strictly
prohibited. If you have received this transmission in crror, please notify us by telephone immediately so we can arrange
for the return of the documents. Thank you.
MEMORANDUM
DATE:
September 11, 1997
TO:
Mack McLarty, Counselor to the President
Kathleen Higgins, Deputy Secretary, Department of Labor
FROM: Congressman Paul E. Kanjorski
RE:
Fast Track Job Opportunities Program
PROBLEM: Many Democratic Members of Congress believe that NAFTA, GATT and other
trade agreements have led to increased unemployment in their states/districts and are thus
reluctant to support any new Fast Track negotiating authority that might exacerbate their local
unemployment problems. There is a mismatch between where jobs are being lost as a result of
new trade agreements, and where they are being created. Existing Trade Adjustment programs
do not create jobs in the communities that need them.
SOLUTION: Put job creation on a "fast track" by incorporating into the Fast Track
legislation specific provisions to create new jobs in areas of the country which have lagged behind
the rest of the nation.
Specific Features of Fast Track Job Program:
Limit program eligibility to counties with an average unemployment rate at least 1% above the
national unemployment rate, and an average income level at least 10% below the national
average (reduces cost).
Give a priority to projects in eligible counties with the highest unemployment rates.
Distribute some funding through the EDA, using as a model its past programs to address
Defense base closure conversion needs and the economic diversification needs of the
Northeast fisheries community and the pacific Northwest timber community.
Distribute some funding through the SBA for additional low cost loans and loan guarantees,
creation and expansion of Small Business Investment Companies (SBICs) and its Certified
Development Company (CDC) program. The SBA's Defense base closure loan program
(DELTA) can also serve as a model for SBA activities in this area.
Incorporate the no cost Baker-Kanjorski-Leach Federal Home Loan Bank (FHLB)
amendments which allow FHLB advances for agricultural, small business and community
development lending, and which allow such loans to be pledged as collateral for FHLB
advances (because it has no cost, this provision could be made available nationwide)
Total funding should be at least $1 billion to demonstrate the magnitude of the
Administration commitment to putting job creation on a fast track.
HIGHLY SENSITIVE DRAFT
EYES ONLY
Talking Points: Cabinet Member Hill Consultations
We plan to seek introduction of fast track legislation on September 10. We wanted to
share with you our current thinking and identify issues of particular significance.
Securing passage of fast track authority is among the President's highest priorities this
Fall because he strongly believes that we must tear down foreign barriers to American
goods and services if we are to keep our economy growing and creating new, good, high
paying jobs.
Americans are enjoying the longest period of sustained growth in a generation.
Much of that growth is attributable to increased export opportunities; exports
today support 11 million jobs. These are high-paying jobs that we must maintain
and expand.
We have regained our position as the world's leading exporter in a range of key
products and are the world's most competitive economy.
make It here Sen it there
As the President has said repeatedly, and most recently in his radio address two weeks
ago, he has three primary objectives that fast track authority must allow him to pursue:
(1) to negotiate new agreements that expand exports to continue the economic expansion
that has created new, good jobs, kept unemployment and inflation at record lows, and
improved our standard of living, (2) to promote worker rights and (3) to promote
responsible environmental development. } mutually supportive
policies funds, CABA, ejun
The legislation we plan to offer emerges out of significant consultations between
the Administration and members of both Houses and both parties; the business
community, including agriculture; and the labor and environmental communities.
Our consultations were focused on developing legislation that could pass, would
allow the President to pursue his objectives, and get maximum Democratic
support. The legislation we will propose achieves these objectives.
On the economic front, the negotiating objectives, along with renewed tariff proclamation
authority that will be sought, will allow the President to negotiate tough, new, reciprocal
trade agreements.
There are significant opportunities now to reduce foreign trade barriers on which
we must capitalize; if we do not, our export opportunities will diminish at great
1
cost to American companies and workers.
Opportunities exist now to reduce barriers in key sectors in which the U.S. is the
most competitive, including agriculture, services, information technology,
environmental equipment, energy-related equipment and others.
-
Some of the opportunities arise is connection with scheduled negotiations
in the WTO.
Others arise from the impetus the APEC leaders have given to new
sectoral initiatives, like the recently concluded Information Technology
Agreement. medican Televe eduinonmental dna {Anth..to complement
Q
future
We also need fast track to negotiate more open markets with specific countries,
especially in Latin America and Asia, two of the fastest growing regions in the
program
world (growing 3 times as fast as our economy). With 95 percent of the world's
duration
consumers living outside or borders, we must open the markets of these growing
economies.
The legislation will provide notification that we would recommence negotiations
to reach a comprehensive trade agreement with Chile. LJE Agreements Sistor
The legislation will also allow the President to pursue his other two commitments
promoting worker rights and responsible environmental development.
The legislation we propose to advance would allow the President to address labor
and environmental issues that are related to trade in the trade agreement, which
would be brought to Congress.
-
For example, this formulation would allow us to incorporate in future
trade agreements provisions that countries not lower environmental
standards to attract investment.
The President would also use his Executive Authority to address labor and
environmental issues in agreements that would not need to be brought back to
Congress. Such agreements could address those labor or environmental issues (or
indeed other issues) of concern with a particular trading partner.
We think this is sound as a matter of policy. It strikes the right balance so that we
can pursue our top trade negotiation priorities as well as important labor and
environmental concerns.
Helpiss Walen
Doubled TAA
2
95% reflaced
600-1.3
herned helps wabe,
We will, of course, be discerning in selecting the partners with whom we
would enter into FTAs.
As fast track procedures will provide for extensive consultations with
Congress and with the Administration's private sector advisory groups,
including labor and environment advisory groups, as part of any
negotiations, there is substantial opportunity to identify any issues of
which the Administration should be aware as it proceeds in negotiations.
And, Congress makes the final determination whether an Agreement that
has been negotiated should be implemented.
It may be appropriate to solicit views of the members on other aspects of the legislation,
including:
duration,
consultations and related procedural provisions,
the scope of the implementing legislation, and
other FTA partners.
In developing this legislation, we considered alternatives that would appeal to those that
urge that the fast track trade agreement address all labor and environmental policies and
practices, not just those that are related to trade. While we can discuss the merits of that
view, the practical reality is that we cannot get fast track authority from this Congress to
do that.
The consequence of not having fast track authority is that we will sideline ourselves
economically and strategically, with great cost to American companies, workers, and the
country; we will also not be in a position to pursue the very objectives that are important
to the labor and environmental communities.
Only if we are engaged can we pursue these goals.
The choice is about obtaining the authority that is sufficiently flexible to allow
the President to pursue all three objectives or obtaining no authority, in which
case no progress can be achieved on any of these fronts.
3
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Low should walers I 51-6AC economy
By Lorraine Woellert
THE WASHINGTON TIMES
TRADE
President Clinton will make trade-
From page B8
negotiating authority a legislative pri-
ority in the coming year and already
has met with 60 to 70 congressmen
has begun working with Congress to
to seek their input and support.
develop a bill allowing fast-track trade
"The administration is not going
deals.
to put a bill forward in a vacuum,"
Mr. Clinton said in a press confer-
Mrs. Barshefksy said, adding that
ence yesterday that free trade is key to
the White House hopes to intro-
keeping the U.S. economy humming.
duce a bill in the first half of Sep-
Clinton to press for fast-track trade power
"We must continue to reach out to
tember. "We want the broadest
the more than 95 percent of the world's
possible consensus."
consumers who live beyond our bor-
Any legislation would include
ders," he said. "That is why I will ask
provisions that the United States
Congress to give me fast-track author-
has already reached in trade talks
ity to negotiate new trade agreements
with Chile, which is trying to join
that will extend free and fair trade to
the United States, Canada and
Mexico in the North American
keep our economy going."
Free Trade Agreement.
A fast-track bill would give the ad-
Procedures for negotiating with
ministration the authority to negotiate
other countries have yet to be
trade deals that are protected from
worked out.
congressional amendments. Adminis-
"Plainly, Congress would be in-
tration officials already have begun
volved with respect to countries
trade talks with Chile, but they
beyond Chile," Mrs. Barshefsky
wouldn't say yesterday what other
said.
countries are slated for fast-track talks.
Partisan politics have held up a fast-
track bill in Congress, where Demo-
crats are insisting that any legislation
include provisions that would require
foreign companies exporting to the
United States to adhere to the same
labor and environmental regulations
that U.S. companies face.
House Minority Leader Richard A.
Gephardt, Missouri Democrat, is lead-
ing the fight against any fast-track bill
that doesn't include those provisions.
Passage of any legislation at this point
appears to be hinging on the Repub-
lican majority in Congress, which has
been pushing the administration to
move forward on the legislation.
"It's a controversial issue, surpris-
ingly so, because it is so clear that our
economic performance is tied to our
exports," U.S. Trade Representative
Charlene Barshefsky said yesterday.
Administration officials wouldn't of-
fer clues to their political strategy, but
they do plan to meet with congressional
leaders during the August recess to
discuss the issue. Mr. Clinton already
see TRADE, page B14
The Washington Times
THURSDAY, AUGUST 7, 1997
By Martin Sieff
THE WASHINGTON TIMES
TALKS
positive vision of the future," Mr.
Secretary of State Madeleine K.
From page Al
Zogby said. "She included a lot of
Albright yesterday endorsed Is-
the right things that needed to be
raeli Prime Minister Benjamin
killing innocent people and build-
said."
Netanyahu's plan to speed up Mid-
ing houses. It is not possible to ad-
But he warned that Mr. Arafat
dle East talks by launching new
dress political issues seriously in a
climate of intimidation and terror."
could not and should not be
U.S. echoes Netanyahu's call to speed up talks
negotiations for a final peace deal
blamed for terrorist attacks that
with the Palestinians.
Mr. Netanyahu has urged the
But her proposal was certain to
Clinton administration to abandon
appeared to have been organized
the cautious timetable of the 1993
from Lebanon by the Islamic Re-
infuriate the Palestinians, who al-
Oslo peace accords and push for
sistance Movement, or Hamas.
ready deeply distrust the Clinton
immediate negotiations on a final
"Arafat is not the enemy. He is
administration. They accuse it of
settlement between Israel and the
not doing the bombing. It is not
siding with Israel.
Palestinians. The Palestinians op-
being carried out from areas he
Mrs. Albright announced she
posed that, charging that such a
controls. He is making a serious
will go to the Middle East at the
move would allow Israel to dictate
effort to prevent it," Mr. Zogby
Albright announces mission to Mideast
end of the month, her first visit to
terms to them.
said.
the region as secretary of state.
Mrs. Albright, in her speech, for
Mr. Arafat was being criticized
In Gaza, Palestinian Authority
the first time indicated that Wash-
for saying that the Palestinians had
President Yasser Arafat warned of
ington might follow the Netanyahu
lost confidence in the peace pro-
a "big struggle" and "battle" that,
policy.
cess, he added.
he said, Mr. Netanyahu "is forcing
"To restore momentum, we have
The Palestinian leader issued a
upon us."
to increase confidence on both
somber statement yesterday,
President Clinton signaled his
sides about where the negotiating
warning his followers of a "big
complete support for Mrs. Al-
process is leading.
[Then] it will
struggle ahead."
bright's proposals by using at a
be easier for them to overcome set-
news conference yesterday lan-
He urged Palestinians "to be
backs and avoid distractions along
prepared for the battle that Netan-
guage virtually identical to a
the way. This will require acceler-
speech given by his secretary of
yahu is forcing upon us and
ating permanent status negoti-
state at the National Press Club.
what is coming is worse than what
ations," she said. "Today, this step
we have seen so far."
The president, virtually echoing
is urgent and important."
arguments made by Mr. Netan-
She also echoed Mr. Netanyahu
Palestinians would have to use
yahu, rejected any moral
by insisting that Mr. Arafat crack
all their resources of "brains, mus-
equivalence between Israeli plans
down unconditionally on terror
cle and food" in the new trial of
to build new housing projects in
and keep terrorists jailed instead
strength with the Israeli author-
and around Jerusalem with Is-
of releasing them.
ities, Mr. Arafat said in a statement
lamic terrorist bomb attacks
"There must be 100-percent ef-
released through the Palestinian
against Israeli civilians.
fort, both with regard to unilateral
news agency Wafa. "We are pre-
A double-suicide bomb attack
Palestinian Authority measures
pared to eat grass - we will not
last week in Jerusalem's Mahane
against terror and in Israeli-
give in."
Yehuda produce market killed 15
Palestinian security cooperation,"
Chief PLO negotiator Saeb
persons, including the bombers,
Mrs. Albright said.
Erekat said Mr. Netanyahu was
and wounded 170 others. It
"On this issue, there can be no
plotting to reoccupy Palestinian-
brought an immediate halt to U.S.
winks, no double meanings, no
controlled territories in the West
efforts to restart negotiations be-
double standards and, with respect
Bank and Gaza because of threats
tween Israel and the Palestinians
to the imprisonment of terrorists,
to send troops to those areas. Israel
that crashed when the Israelis
no revolving doors," she said. "Nor
launched a crackdown against the
started a housing project in Jeru-
can the level of security coopera-
Palestinians after the market
salem in March.
tion ebb and flow with the ups and
bombing.
"There is no parallel between
downs of negotiation. The Pales-
"The Israeli measures indicated
bombs and bulldozers. You cannot
tinian commitment to fight terror
the Israeli government's readiness
have an environment in which peo-
must be constant and absolute."
to launch a war on the Palestinian
ple believe that to get what they
Mr. Netanyahu's office wel-
Authority, President Arafat and
want is to kill innocent people," Mr.
comed Mrs. Albright's speech,
the Palestinian people," he told a
Clinton said.
calling it "serious" and said "much
news conference in the West Bank.
"Let me be clear," Mrs. Albright
thought was invested in it."
In Syria, official newspapers
said. "There is no moral
James Zogby, president of the
took a similar line. They warned
equivalency between suicide
Arab-American Institute in Wash-
that Mr. Netanyahu was pushing
bombers and bulldozers, between
ington, said Mrs. Albright's speech
the Middle East toward a "grave
was a constructive contribution to
see TALKS, page A13
explosion" and urged Arabs to pre-
the peace process.
pare for "military and political"
The secretary "presented a
battles with Israel.
The Washington Times
THURSDAY. AUGUST 7, 1997
Fast or Fatal Track for Democrats?
The Irishman, as William Butter Yeats
ists. the Pat Buchanan-led economic na-
It also goes to the politics of 2000. Leal-
rats-privately, that number is more like
wrote, has "an abiding sense of tragedy
tionalists and Ross Perot.
ing the fight against fast track will e
70-out of the 206 total House Democrats.
which sustains him through temporary pe-
Despite the strong economy. the public
House Minority Leader Dick Gephardt (I.,
But according to a reliable Democratic
riods of joy. If political parties were na-
is skeptical of unfettered free trade. In this
Mo.). Within the administration sits an 11)-
strategist, there are currently fewer than
tionalities, the Democrats would be Irish.
week's Wall Street Journal/NBC News
comfortable Vice President Albert Goe,
60 Democratic votes for fast-track. At a
For Democrats. joyful over the schisms
poll. respondents by a stunning 2-to-1 mar-
who knows the issue is going to cause hm
White House meeting last week. Rep.
plaguing Republicans, there is a looming
gin opposed giving the president fast-track
grief with core constituencies.
Charles Rangel of New York, the ranking
calamity: the fast-track initiative Presi-
authority.
Mr. Gephardt has tried to persuade he
Democrat on the Ways and Means com-
dent Clinton will propose in September to
Some of this is a residual effect of the
administration to water down any request
mittee. pointedly warned the president he
give him authority to negotiate free-trade
1993. North America Free Trade Agree-
for fast-track authority. in order to linit
has to do more for workers displaced by
THE WALL STREET JOURNAL THURSDAY, JULY 31, 1997
agreements.
ment. U.S. Trade Representative Charlene
the political fallout: even free-trade )e-
trade pacts.
There are two realities here: One, fast-
Barshefsky, in laying the groundwork for
mocrats like California's Vic Fazio have
Other concessions may prove very elu-
track is essential if the U.S. is to continue
fast-track legislation, has talked to more
voiced concern to both Mr. Gephardt and
sive. The Nafta side agreement on labor
to play a leading role in the global econ-
than 175 members of Congress, and practi-
the White House over the likely political
and environment has proven toothless.
omy; but two. it will seriously exacerbate
cally every one offers a Nafta horror story
damage. But Clinton operatives are con-
Leading congressional Republicans now
fault lines within the Democratic Party. It
of some plant that moved or jobs that were
insist on going the other way, telling the
is a foregone conclusion that a decisive ma-
lost. Actually, much of this is exagger-
Uphill Track
White House there must be language that
ated; Nafta hasn't vet produced some of
makes it clear that any trade negotiations
jority of congressional Democrats will vote
against the president; the ensuing tensions
the benefits proponents promised, but nei-
President Clinton will ask Congress to give
involving labor and environmental mat-
will make it considerably harder for them
ther has it caused the ills critics claim.
him "fast-track" authority to negotiate more
ters will be very limited.
to win back control of Congress in 1998.
But the White House will try strenu-
free trade agreements. This would mean hat
"If the president tries to cater to Dick
ously to divorce fast-track from these
once the negotiations are completed.
Gephardt and John Sweeney, he's not go-
Nafta perceptions. "We won't fight this on
Congress would take an up-or-down vote,
ing to get fast-track," bluntly warns Rep.
Politics & People
the Nafta battleground,' says Victoria
but not make any amendments or changes
David Dreier (R Calif. a key GOP trade
Radd, a top White House aide who has
Do you favor or oppose this?
strategist.
been detailed to the fast-track fight. "We
In the end the president will probably
By Albert R. Hunt
will fight it on the future battleground.
FAVOR
32%
succeed. Despite public opinion and formi-
Similarly, Ambassador Barshefsky says:
61%
dable opposition, presidents almost invari-
OPPOSE
"To say that fast track is Nafta ignores the
ably win major foreign policy and trade
The fast-track legislation would simply
necessity for U.S. leadership in the global
Poll taken July 26-28, 1997.
initiatives. Moreover, for all the rhetoric of
give the president the authority to negoti-
economy.
labor, the pro-trade business community
But no matter how the argument is
has more resources. And there would be
ate trade agreements, whether bilateral
deals with Chile and South Africa or sec-
framed, it splits the Democratic party. It's
THE WALL STREET JOURNAL NEWS PCLL
consequences if fast-track fails. Trade ne-
toral pacts in areas like agriculture and fi-
a little bit of the New Democrat vs. Old De-
gotiations would continue without the
nancial services. These treaties then
mocrat schism. But more than that, it re-
temptuous of Mr. Gephardt's motives,
U.S.; only recently Canada cut a deal with
would be brought back to Congress for up-
flects different constituencies-th more
charging he only advances thinly dis-
Chile.
or-down approval but couldn't be amended
traditional and usually industrial districts
guised protectionist pitches that the presi-
Moreover, as the president showed in
or changed.
VS. higher-tech, cutting-edge sectors of the
dent finds unacceptable.
the recently completed budget deal,
Without fast-track, any trade pact
The administration plans an allout
when he needlessly caved in on some tax
economy.
would become a special-interest bazaar in
These splits will be symbolized today.
push. It has hired an outside lobbyist tddi-
provisions in order to get a quick deal-
the legislative branch. When Congress
The president will meet with several dozen
rect the campaign; the top cabinet officials
to clear the decks for fast-track this
started to reject portions of trade agree-
House Democrats at the White House to
will be actively engaged this fall; and it
fall often prefers dealing with Re
ments a quarter-century ago, this proce-
pitch fast track. At about the same time, a
has enlisted two highly resourceful former
publicans. Thus, the likely final resolu-
dure was necessitated. Such authority ex-
few hundred yards away in the AFL-CIO
members of congress, Republican Vin V/e-
tion-another second-term victory for the
pired several years ago, and without it,
building, the too labor chieftain, John
ber and Democrat Tom Downey, a close
White House that virtually assures con-
any major trade deals are impossible.
Sweeney, will convene a meeting of lead-
confidant of Mr. Gore.
tinued GOP control of the House in
As right as it is on the merits, the poli-
ing legislative, political and media offi-
The battle will be waged first in the
1998-is a bargain to which Bill Clinton,
tics of fast-track are dicey. The opposition
cials from major unions to map an anti-
House, where Republicans publicly insist
and congressional Republicans are grow-
will include labor, many environmental-
fast-track strategy.
the White House must deliver 90 Demcc-
ing accustomed.
rs to the Editor
omething's Out There, Somewhere
When I was young my cousin explained
Mr. Gonzalez apparently knows every
possible way that life can develop. perhaps
Yes, life is fragile and unique, but those
to me that the Dow had just gone above 600
for the first time in history. and that we
after 3 brief consultation with God.
are relative terms at best. The fragility is
This kind of narrow thinking is de-
one honed in the raging furnaces of stars
were lucky to see it. He speculated that it
might even go above 1000 in our lifetimes.
plorable in a scientist, trying to state that
and therefore resilient and enduring. The
That it would be closing near 8000 was
because certain conditions occurred in test
uniqueness is one that is intrinsic, like a
quite out of anyone's experience. and
case A (Earth) they must be present in test
snowflake; each one different, but with in-
case B (elsewhere) for life to exist. For ex-
finite variations. While the creation of life
hence was not considered possible. I am
ample. I concede that the presence of a
surely requires nature to "follow the direc-
struck. then. by the timing of the July 16
tions carefully when baking," per Mr. Gon-
editorial-page piece by Guillermo Gonza-
lez. "Nobody Here but Us Earthlings. Mr.
NOW's Opposition
zalez, we need to realize that our universe
is comprised of nothing but trillions of
Gonzalez joins a long line of experts who
have stated that nothing can exist that
To Promise Keepers
"ovens" all cooking at once. Whether we
choose to call the baker God or Nature, the
they. personally. can't imagine. based on
The Rev. Ann K. Larson, in her July 22
sheer volume of implements at His dis-
their own experience. I am not convinced.
Letter to the Editor, writes that I misrep-
posal prove He has a fairly boundless mar-
When I worked at NASA in the 1980s I
resented her in my July 11 editorial-page
gin of error in His recipes, and life is most
was convinced that a fair number of astro-
piece "NOW's Time Is Past," by implying
likely His "soup du jour." Life is not a
physicists and astronomers would have
that she was a supporter of the Promise
question. It is an imperative from the chef.
been willing to prove that life on Earth was
Keepers. For the record. the Rev. Larson
ANTONIO GONZALEZ
SO improbable that it. too. couldn't exist.
made it clear to me when I interviewed
Pembroke Pines, Fla.
Thankfully, this group has had to consider
her for the piece that she opposed the
the data, in addition to their own preju-
group. Her opposition should be evident
A Misunderstanding,
dice. In fact. the history of modern astron-
from the fact that she sought to amend,
omy has repeatedly demonstrated that
rather than reject, NOW's virulently anti-
Not Act of Bad Faith
Earth is not all that special. our own egos
Promise Keeper resolution. Nonetheless, I
aside. There are probably millions of
In regard to your article about the
appreciated the fact that she was open-
Earth-like planets in this galaxy alone. Be-
minded enough to grant in her amend-
breakup of Conrail, I would like to clarify
cause we Earthlings are here. it is much
ment language that men have needs,
several points regarding our relationship
more likely that we aren't alone.
with the Norfolk Southern Railroad. Dur-
too-something many of her colleagues at
Mr. Gonzalez claimed to "consider the
NOW cannot bring themselves to ac-
ing the winter and early spring we had
necessary conditions for both the origin of
knowledge.
several discussions with NS representa-
life" and its maintenance. This is remark-
SALLY L. SATEL
tives on their proposed acquisition of Con-
able, since the conditions for the origin of
Washington
rail and how it would affect our railroads.
life are quite unknown. His list of condi-
NS did make certain commitments to us at
tions is thus somewhat laughable: only by
nearby gas giant like Jupiter would
that time. Subsequent discussions with NS
finding life elsewhere will we ever be able
greatly ease the process of life developing
revealed that there was a misunderstand-
to consider the common conditions that al-
on a planet. but it would be unprofessional
ing between the parties as to the exact de-
OW lite. and throw out those that are
to state categorically that a gas giant is
tails of those commitments.
necessary for the development of life. Fur-
merely "the way it was" on Earth. Far
The tone of your article was that NS,
ther. the vast majority of Mr. Gonzalez's
from weakening the case for extraterres-
having won the battle for acquisition of
trial life. recent discoveries III astronomy
conditions have less merit than the gas g1-
Conrail, was now reneging on promises
gamma-ray bursts. black holes, and as-
ant hypothesis. The evidence does not sup-
made. I want to stress that, based on our
port his conclusions.
teroid impacts. etc.) only serve to tell us
subsequent conversations with NS, we be-
that we grew up 111 a tough neighborhood.
JOHN HAUGH
lieve this was an honest misunderstanding
Atlanta
Juxtaposed is the current understanding
between the parties. We do not believe that
that lite was widespread on Earth as much
NS acted in bad faith in dealing with us.
Clearly, the parameters within which
as 3.8 billion years ago (about one-third
Our subsequent conversations with NS
the age of the universe). Life here must
life (as we know it) can emerge, are nar-
officials also resulted in their furnishing
have formed at a time when the bombard-
row (i.e.: liquid water. moderate tempera-
us with the details of what operating, com-
ture range. etc.). Likewise, as our knowl-
ment of Earth by asteroids and comets was
mercial and service arrangements they
edge increases we find additional con-
many times greater in both frequency and
will put in place when they take over Con-
straints which further define these bound-
intensity. and at a time when Earth prob-
rail. These arrangements are a distinct
aries. However, Mr. Gonzalez fails to
ably didn't even have an ozone layer to
improvement over what we now have with
mention that simultaneous with our dis-
THE WALL THURSDAY, 31, 1997
protect the surface from solar ultraviolet
Conrail, and we believe they are a strong
radiation.
covery of narrowing pre-conditions for
foundation for further good faith discus-
life, we're also finding a universe that is
do agree with Mr. Gonzalez that "Why
sions that we hope will result in the best
are we here?" is a perfectly reasonable
vastly larger. with millions of galaxies,
commercial and industrial development
question. Nonetheless, "Are we alone?" re-
"each" containing "billions" of stars. Ob-
environment in the North Central Penn-
mains one of the most fascinating ques-
viously, while life will emerge only in spe-
sylvania region that we serve.
tions in science today.
cial environments. the statistical probabil-
RICHARD D. ROBEY
ity of more and more such opportunities
JOHN D. RUMMEL, PH.D.
President
existing increases exponentially the fur-
Marine Biological Laboratory
North Shore Railroad Co.
Woods Hole. Mass.
ther we look out toward the expanding
Northumberland, Pa.
edge of the universe.
It amazes me that a professional as-
Life indeed is a delicate achievement of
tronomer should have such a stunningly
nature. However. it is a fragility with
inflexible mind as Mr. Gonzalez. Mr. Gon-
broad dimensions. There are sponges and
zalez argues that extraterrestrial life does
crabs thriving on this planet in total dark-
not exist because it is statistically unlikely
ness next to undersea volcanic vents that
to occur elsewhere precisely the same way
spew toxic minerals and where the water
it occurred on Earth. Can he not imagine
would boil but for the intense pressure.
There are fish in Antarctica who exist in
any possible scenario other than exactly
what occurred here on Earth? He states
subfreezing temperatures with blood
that. if one "looks at the astronomical data
chemically analogous to antifreeze. There
with an open mind" it becomes obvious
are microbes that exist and propagate in
that "early estimates lof habitable worlds
pools of minerals and acids. Clearly, the
in the universe| were wildly optimistic."
size of the "window" for life is not as
Mr. Gonzalez leaps from stating "Given
diminutive, nor as rare, as Mr. Gonzalez
that the laws of chemistry and physics'are
would have us believe.
universal" to the hypothesis that life is
The universe admittedly is a hostile
only possible if an environment has "liquid
place, as Mr. Gonzalez asserts. Galaxies
water. a long-term stable energy source
do appear to harbor. at their center, mas-
and" 17 particular elements. He also states
sive black holes that spew dangerous radi-
that such an environment must also enjoy
ation. Such a massive black hole, in fact,
another 31 astronomical conditions for life
is most likely what lies at the center of our
own Milky Way galaxy. Yet we and the di-
portunity." to occur, leading to a "small window of op-
nosaurs before us managed to evolve into
existence from one-celled life forms and
collectively survived a couple of mass ex-
tinctions to ensure a couple of hundred
million years of continuing life on this
fragile sphere.
Mark,
Michael W. Williams
07/30/97 01:26:49 PM
For mtg
Record Type: Record
Thurs. night
To:
Steven J. Ronnel/WHO/EOP
-Deve
cc:
Subject: Fast Track Mtg.
EVENT:
Congressional Fast Track Meeting
I
DATE:
Thursday, July 31
TIME:
6:30 PM - 7:30 PM
LOCATION: Yellow Oval Room
***Please note, Members of Congress should enter the NW Gate at 6:15PM and park on the
NW Drive.
MEMBERS PENDING (5):
Rep. John Murtha
Rep. Joseph Kennedy
Rep. Bob Menendez
Rep. Donald Payne
Rep. Julian Dixon
MEMBERS CONFIRMED TO ATTEND (28):
Rep. Robert Matsui
Rep. James Moran
Rep. Vic Fazio
Rep. Silvestre Reyes
Rep. Charles Stenholm
Rep. Peter Deutsch
Rep. Zoe Lofgren
Rep. Tom Barrett
Rep. Norm Dicks
Rep. Jay Johnson
Rep. Chris John
Rep. Adam Smith
Rep. David Minge
Rep. Nita Lowey
Rep. Bill Luther
Rep. Vic Synder
Rep. Lee Hamilton
Rep. Martin Meehan
Rep. Michael McIntyre
Rep. David Price
Rep. Floyd Flake
Rep. Bob Clement
Rep. Harold Ford Jr.
Rep. Ellen Tauscher
Rep. Ike Skelton
Rep. Bob Etheridge
Rep. Jane Harman
Rep. Carolyn McCarthy
MEMBERS INVITED BUT UNABLE TO ATTEND:
Rep. Martin Frost
Rep. Lloyd Doggett
ADMINISTRATION PARTICIPANTS:
The President
The Vice President
Secretary Rubin
Secretary Glickman
Secretary Daly
Secretary Herman
Ambassador Barshefsky
Administrator Browner
Counselor McLarty
Under Secretary Eizenstat
SpraH
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CLINTON LIBRARY PHOTOCOPY
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CLINTON LIBRARY PHOTOCOPY
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NOTE- There is a personal
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CLINTON LIBRARY PHOTOCOPY
THE WHITE HOUSE July 17/97
Bob-
Help Needed NOW of majishv
per earlier taching points to you. Discussions
at A emition Paint. CAn Needs to
Be today to moderate Moyiv has He
probably Lisjt Be supporties BUT moderation
A his position will help.
RememBer Tris is i Presidention Commetant.
POTES restated LAST night his corcern a about
this mn Hen Consequer of Net mahivs gual over)
on commitment
Could new Bost people illegar mignrits
to your hometown 1 Mismi.
Buy,hood
Respect fully - -
med
/
CLINTON LIBRARY PHOTOCOPY
THE WHITE HOUSE
Jug 17197
Mike -
Please get 8.6 to male tris CAN
to Mainhan today Imp to TC
President psid cmp milk.
MAY Anb
11
Was
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Ron Klain @ OVP
07/18/97 11:07:32 AM
Record Type:
Record
To:
Patricia A. McHugh/WHO/EOP
CC:
Subject: CBI
I have been trying to reach Mack to tell him that the VP is VERY CONCERNED about where we are
headed on CBI and environmental conditions. He has been distressed by recent reports on this.
Can you pass this along to Mack? Thanks.
THE WHITE HOUSE
WASHINGTON
OFFICE OF MACK MCLARTY
Counselor to the President
Special Envoy for the Americas
FAX TRANSMITTAL SHEET
TO: MIKE FROMAN
FAX: 622-0073
PHONE:
FROM: MACK Mc LARTY
SUBJECT:
DATE: 7/17/97
NUMBER OF PAGES (Including Cover): 3
MESSAGES:
(NOTE FAXED To ANNABELLA'S
ATTENTION FOR SECRETARY RUBIN.)
If all pages are not received, please call 202/456-2000. 2463
The document accompanying this facsimile transmittal sheet is intended only for the use of the individual or
entity to whom it is addressed. This message contains information which may be privileged, confidential or
exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, or the
employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that
any disclosure, dissemination, copying, or distribution, or the taking of any action in reliance on the contents of
this communication is strictly prohibited.
THE WHITE HOUSE Juy 17197
Mike -
Please get 8.6 to ansle tris CAn
to Mounhs today I Imp to Te
President pad imp matter.
MANY XALs
rl
mad
THE WHITE HOUSE July 17/97
Bob-
Help Needed NOW of maying
per earlier taching points to you Discussions
at A critical Point. CAn Needs to
Be today to moderate MOYIV has He
probably writ Be supprited BUT modention
A his position Live help.
Rememiser This is L Presidention Commitment.
POTS restated LAST night his corcern about
this matter Consequer il Net mahives 540ml over)
on commitment
Could mind Bont people illigar migrinits
Buy hiod
to your hometown 1 M.Am.
Respect fully - fully -
med
/
THE WHITE HOUSE
WASHINGTON
OFFICE OF MACK MCLARTY
Counselor to the President
Special Envoy for the Americas
FAX TRANSMITTAL SHEET
TO: SECRETARY RUBIN ATTN: ANNABELLA
FAX: 622-0000
PHONE:
FROM: MACIL McLARRY
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DATE: 7/17/97
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MESSAGES:
If all pages are not received, please call 202/456-2000. 2463
The document accompanying this facsimile transmittal sheet is intended only for the use of the individual or
entity to whom it is addressed. This message contains information which may be privileged, confidential or
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JUL-17-97 10:03
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THE WHITE HOUSE
WASHINGTON
July 17, 1997
MEMORANDUM FOR BRUCE LINDSEY
FROM:
MACK McLARTY Mach, 1 pm
SUBJECT:
PHONE CALL BY THE PRESIDENT TO SENATOR LOTT
Attached are talking points for the President's use in a call to
Senator Lott. The President agreed to call Lott in a
conversation with Lott last night. USTR has cleared the
language.
ME
Thank you.
NEC/NSC
CBIPOTUS. TK1
Page 1
TALKING POINTS FOR CALL TO SENATOR LOTT:
CARIBBEAN BASIN INITIATIVE (CBI) TRADE ENHANCEMENT
I am calling to touch base on negotiations over the Caribbean Basin Initiative (CBI) Trade
Enhancement provisions in the budget reconciliation conference.
As you know, I have been committed for several years to providing trade relief to the
Caribbean and Central American nations in the Caribbean Basin. When I was in Costa
Rica and Barbados this Spring, I reaffirmed that commitment to the region's leaders.
I was obviously pleased at your statement of support last week for trade relief for the CBI
nations.
Note: Lott stated in a press conference that he supported CBI trade relief,
and was inclined toward the Crane bill, which differs in important respects
from the Administration version.
Of the two versions of CBI Trade Enhancement, we obviously prefer the Administration's
proposal over the Crane bill because it helps move the Caribbean Basin nations toward
free trade accession. But we see some flexibility in fashioning a compromise between the
two.
Chairman Roth has taken a very positive step by convening a bicameral working group
that includes Administration representatives to work through the issues. I understand a
good start has been made.
Please know that you have my Administration's support for keeping a negotiated CBI
trade provision in the budget reconciliation bill.
Tuna-Dolphin Bill
Senator Lott has agreed to file for cloture today (against a Boxer/Biden filibuster)
and to bring up Tuna-Dolphin for a vote early next week. The bill has passed the
House and the Senate Commerce Committee. You sent a letter yesterday to Sen.
Lott (see attached) asking him to support quick passage of our bill.
You should thank him for his support. You can also tell him that at his request we
have worked to secure the support of Democratic Senators, and now have ten who
will support Tuna-Dolphin in a cloture vote.
THE WHITE HOUSE July 17/97 mach
BAnny-
we Need your Sirgular lendership
today with the AHAC had enclist.
Important commitment of the President
And of ours (mach Ad Barry) AS
wea.
MANY thats - Agrid.
Mid
THE WHITE HOUSE
WASHINGTON
July 17, 1997
MEMORANDUM FOR THE DIRECTOR OF THE OFFICE OF NATIONAL DRUG
CONTROL POLICY BARRY MCCAFFREY
FROM:
MACK MCLARTY
COUNSELOR TO THE WRS AND SPECIAL ENVOY FOR THE
AMERICAS
Subject:
Provision in the Budget Reconciliation Bill Providing Enhanced Trade
Benefits to Nations Involved in The Caribbean Basin Initiative
Senator Roth has convened a conference committee process this week seeking to resolve
differences between the Senate and House over a the provision in the Budget Reconciliation bill
that will provide enhanced trade benefits to nations involved in the Caribbean Basin Initiative.
The House bill includes a one-year provision with back-ended conditionality. It differs
substantially from the Administration's eight-year bill with tougher conditionality. The Senate did
not include any trade related issues in its Budget Reconciliation bill, but Senators Roth and Lott
are favorably disposed to keeping a CBI enhanced trade benefit provision in conference.
While substantial differences remain to be worked out between the Senate and House and the
Administration, I think with the right push from the Administration we can make a difference in
strengthening commitments from key Senate and House conferees to ensure that every
consideration is made aimed at achieving a successful resolution of this provision.
Suggested Actions:
Given your leadership role in the Caribbean region on the security/counter narcotics front,
your key role at the Bridgetown Summit nailing down the Declaration of Principles, and
that in CBI nations there is a strong link between economic opportunities through
enhanced trade benefits and reducing dependency on the drug trade for survival, it would
be particularly beneficial to have you call Majority Leader Lott, Senator Roth and
Chairman Archer as soon as possible and express those views. The message is that this is
a priority issue for the Administration, both from a regional economic and security front,
and there is some flexibility on the content of the legislation. Senators Roth and Lott
received similar messages from me within the past week.
Administration Involvement To Date:
The President's commitment to the legislation has been firm all along, beginning with its
inclusion in his FY 1998 budget submission to the Congress in February. It has served as
the catalyst to get us where we are today
The Administration's legislation was transmitted to the Congress on June 17th, and was
introduced by Senator Graham (S.984) co-sponsored by Senators Mack, McCain, Dewine
and Moseley-Braun. In the House, Congressman Rangel introduced it (H.R. 2096).
Treasury Secretary Rubin sent a letter on July 3 letter to the House Conferees indicating
the high priority that the Administration places on keeping a provision in the Budget
Reconciliation bill that will provide enhanced benefits to Nations involved in the Caribbean
Basin Initiative.
Background:
Caribbean nations will be in a much better position to combat narcotics trafficking as
pledged to in the Bridgetown Declaration. Unless these nations are able to stem the
diversionary impact that NAFTA is having on their trade and investment, workers who are
displaced from their jobs will have few choices to turn to.
The inclusion of a trade enhancement provision in the final budget reconciliation bill will
serve to firm up the President's commitments outlined in the Bridgetown Declaration of
Principles, and signed by the Heads of State, to increase cooperation along the regional
economic and security front. The declaration states in very direct terms:
"We pledge to enhance the Caribbean-U.S. trade relationship by supporting the
expeditious passage of legislation by the United States, to confer CBI treatment on an
extended basis, to products of Caribbean origin which are currently excluded."
The proposed U.S.- Caribbean Basin Trade Enhancement bill is part of an integrated
Administration-wide strategy to advance economic progress and promote regional
cooperation throughout the Caribbean. It signals our intention to expand trade with
Caribbean countries on terms consistent with the objectives of the Free Trade Area of the
Americas.
The key to the success of the existing CBI program, and of what is contemplated in the
enhance benefit measure, is that the trade provides benefits to both the U.S. and to the
Caribbean countries. The majority of our apparel imports from Caribbean countries
contain substantial U.S. content. This means U.S. producers and workers make the fabric
and the other inputs (linings, sewing thread, notions) that go into the CBI's apparel; U.S.
companies employ people in cutting and distribution in the U.S. and so on. By expanding
the benefits, particularly in the textile and apparel sector, to Caribbean nations, U.S.
companies will increase market share of apparel made with U.S. content.
SAM Fried
MEMORANDUM
OF CALL
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OPTIONAL FORM 363 (Rev. 7-94)
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CLINTON LIBRARY PHOTOCOPY
07/17/97 THU 10:28 FAX
ARA/CCA
001
THE WHITE HOUSE
WASHINGTON
OFFICE OF MACK MCLARTY
Counselor to the President
Special Envoy for the Americas
FAX TRANSMITTAL SHEET
TO: NELSON CUNNINGHAM
ANA- Please pass to Nelson
"ASAP." 7b "
FAX: ( 2215
PHONE:
D.Macky
FROM: DANLESMEZ
2
Steve
SUBJECT: CBITEA iNFO.
3
DATE: 7/17/97
Eric
4
Nelson
NUMBER OF PAGES (Including Cover): $
MESSAGES:
1
Letter Roth. from McCain of Graha to
2) Article Senate in today's fournal of Commerce
on Partiamentarian 's inclination
If all pages are not received, please call 202/456-2000.
to rule Byrd Rule in order.
The document accompanying this facsimile transmittal sheet is intended only for the use of the individual or
entity to whom it is addressed. This message contains information which may be privileged, confidential or
exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, or the
employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that
any disclosure, dissemination, copying, or distribution, or the taking of any action in reliance on the contents of
this communication is strictly prohibited
07/17/97 THU 10:29 FAX
ARA/CCA
07/17/97
002
10:14
1202 395 4658
USTR CONG AFFRS
07/16/97
18:20
003/004
United States Senate
WASHINGTON, DC 20510
July 16, 1997
The Honorable william V. Roth, Jr.
Chairman
Committee on Finance
104 Hart Senate Office Building
Washington, D.C. 20510-0801
Dear Chairman:
The joint Senate-House budget reconciliation conference is
considering a proposal to reduce tariffs on products, such as
textile and apparels, from countries in the Caribbean Basin, and
could include this measure in the final conference agreement.
The proposal was included in the House version of the
reconciliation bill, but has not been addressed in the Senate. I
respectfully ask you to support this significant initiative.
The Caribbean Basin Initiative (CBI) was set up in 1983 to
provide incentives for American investment and trade with
Caribbean countries. Many American companies, particularly in
the apparel industry, have invested in the Caribbean Basin during
the past decade due to these incentives. During 1994 alone, some
$4.6 billion in textile and apparel products were shipped to the
United States from this region.
The North American Free Trade Agreement (NAFTA) has created
a trade diversion that has unfairly impacted the CBI countries
and companies invested in them_ Because of NAFTA, goods, shipped
from Mexico are becoming less expensive relative to products
shipped from the Caribbean countries, where tariffs are higher.
As a result, the rate of growth for apparel imports from CBI
countries into the United States fell from 25 percent during 1995
to about 8 percent in 1996, while apparal imports from Mexico
grew by 41 percent during the same five-month period.
The diversion created by NAFTA has also enhanced the
attractiveness of Mexico as a site for investing in manufacturing
operations for export to the United States. Companies in the
Caribbean Basin are considering relocating to Mexico because of
the less costly trade restrictions. Industry groups say that
approximately 275, 000 American jobs that depend on current
Caribbean trade may be at risk. American factories located in
this region are being hurt by this trade diversion, and the CBI
07/17/97 THU 10:29 FAX
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003
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10:15
202 395 4656
USTR CONG AFFRS
004/004
07/16/97
18:20
The Honorable William V. Roth, JI.
July 16, 1997
Page 2
countries are complaining that they are being treated unfairly by
NAFTA.
It is important that the people of the Caribbean Basin have
real opportunities in the legal economy so that they are not
forced to turn to drug trafficking to feed their family. The
Caribbean has been one of the principal transit regions for drug
traffickers moving their poisonous cargo from the source
countries of South America. In addition, the recent WTO decision
on bananas could have a devastating effect on the economies of
several countries in the region, thereby exacerbating the
potential for people to turn to illegal activities.
Strengthening Caribbean economies through enhanced trade and
economic activity will help keep drugs off the streets of
America, and out of the hands of America's children.
There are also security interests at stake in the Caribbean.
We have seen time and again how economic instability can foment
political turmoil, which in turn can require American political
or military involvement. In the past, economic and political
instability has also resulted in massive refugee flows to the
United States, which places an unfair burden on taxpayers.
You are encouraged to support NAFTA parity for Caribbean
Basin countries. It is in our interest to treat these countries
fairly. If we fail to seize this opportunity, others will take
our place of leadership, and our economy will be the loser.
Sincerely,
Jh mile
DoD Gratem
John McCain
Bob Graham
United States Senator
United States Senator
07/17/97 THU 10:30 FAX
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JUL 20 'CA 03:23AM
P.2/3
that Mexico earned under the
North American Free Trade
Agreement.
Unlike that pact, in which
Mexico agreed to lower all its
barriers to U.S. exports, Nafta
parity involves no reciprocal
trade benefits for the United
States.
Technicality may
Out of place
snag Nafta parity
But on Wednesday,
Parliamentarian Robert Dove,
who is the arbiter of disputes
Senate's parliamentarian says the
on Senate procedure, said the
Caribbean plan is out of place
plan to give free-trade benefits to
in the budget bill. His ruling
Central America and the Caribbean
would require supporters of the
doesn't belong in the big budget bill
Caribbean plan to muster 60
before Congress.
Senate votes to prevent the
JUL 17 1997
measure from being stripped
BY JOHN MAGGS
out of the budget bill.
JOURNAL O.P. COMMERCE STAFF
A Senate rule - named the
Byrd Rule after Sen. Robert
WASHINGTON - An effort to extend free-
Byrd, D-W.Va., who first pro-
trade benefits to Central America and the Carib-
posed it - generally prohibits
been was in jeopardy Wednesday because of a
the addition of non-budgetary
technicality.
riders to budget legislation.
The Senate's parliamentarian said the plan,
In an interview, Mr. Dove
which affects $5.8 billion in imports from the re-
said the Caribbean bill violates
gion. does not belong in the giant budget bill
the Byrd rule because it in-
now before Congress.
volves "serious policy ques-
If the plan is scuttled, it would be a setback to
tions" that are unrelated to
some U.S-based apparel companies seeking to
spending or revenue-raising.
expand production in Central America and the
Parity has been pushed by
Carlbbean.
U.S.-based apparel makers with
The parliamentarian's decision makes it more
factories in Central America,
likely that U.S. underwear maker and lobbying
led by Chicago-based Sara Lee
powerhouse Fruit of the Loom will succeed in ei-
Corp. Chairman John Bryan is
ther defeating the Caribbean plan or forcing
one of President Clinton's most
changes that will benefit that company's cotton
loyal business supporters.
fabric factories in the United States.
The Caribbean plan. known as "Nafta parity,"
Budget bill attachment
would offer Central American and Caribbean na-
dons the same tariff and quota cuts for apparel
After repeatedly failing to
See PARITY, Page SA
pass Nafta parity in a free-
standing use bill, these sup-
porters succeeded in getting it
attached to the budget bill that
passed the House last month.
The Senate and House this
week are trying to reconcile
competing budget bills, and
one of the differences is over
Nafta parity.
Unlike previous years when
the Caribbean plan met a quick
death in Congress, it appeared
until recently that some version
of the bill had a much better
chance of passage in 1997.
07/17/97 THU 10:30 FAX
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005
JUL 20 'CA 03:23AM
P.3/3
A crucial factor has been the
National Security Adviser Sandy
kind of compromise in the
advocacy of President Clinton,
Berger - have pushed hard for
House version of the bill.
who promised Central Ameri-
Nafta parity as an economic
can and Carlbbean leaders in
boen for the region that will
"Fruit (of the Loom) has the
May that be would fight for the
give its people an alternative to
plan.
drug trafflcking.
advantage of being perfectly
Officials for these govern-
happy to kill the (House) bill,"
Even without the procedural
ments have argued that Nafta
"Byrd Rule" complaint raised
said one Senate staffer "They
has hurt them by giving Mexico
by Mr. Dove, Nafta parity has
are only helped by any Byrd
an advantage in textile and ap-
faced considerable opposition
Rule-problem."
parel exporting to the United
in the Senate. Fourteen sena-
States.
tors signed a letter to President
Fruit of the Loom has its
But trade data show that
Clinton last week opposing the
Central America and the Carlb-
House plan, and the top Rc-
own apparel factories in Cen-
been have actually gained a
publican and Democrat on the
tral America and the Carlbbean,
larger share of the U.S. market
tax- and tariff-writing Senate
which use fabric made by the
since Nafta was enacted.
Finance Committee are against
company's factories in the
including it in the budget bill.
United States. It fears competi-
Advisers push hard
House and Senate aides
tion from apparel makers in
Wednesday were previously un-
This aside, two of Mr.
aware of Mr. Dove's judgment,
the Caribbean region with ac-
Clinton's foreign policy advisers
but most agreed that it proba-
cest to lower-cost fabric from
- counselor Mack McLarty and
bly makes more likely some
Asia and elsewhere.
-
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MEMORANDUM
OF CALL
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Information [partial] (1 page)
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RR. Document will be reviewed upon request.
July 14, 1997
MEMORANDUM FOR WAVES CENTER
FROM:
ANA DUQUE, OFFICE OF MACK MCLARTY
RE:
Appointment request for 4:30 pm
Please wave the following Ambassadors in for 4:30 pm today. They will be meeting Thomas
"Mack" McLarty in room 476, OEOB.
Flores Bermudez, Roberto
Honduras [001]
Picado, Sonia
Costa Rica
Lamport, Pedro
Guatemala
(b)(6)
Vega, Bernardo
Dominican Republic
Sol, Ana Cristina
El Salvador
Peace regiod
Hoperfor time)
Aguirre, Francisco
Nicaragua
HAS
My extension is x65290 if there are any questions. Thanks.
Gznd D 3rd Arective Committed
5mg Albert meeting I more 1 UNGA laty
Sept
I implements the PONS Commitments IN CSM Then
The comments
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5 Smtso Summt -- idention --. partracys So
Clinton Library Photocopy
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Some Problems with the Administration's Caribbean Basin
Trade Enhancement Act
While the real objective is a free trade treaty with the United
States, Nafta parity is a positive intermediate step. However there
are problems in the text of the CBTEA:
1
nelson
5
Enc
3
Steve
I - Nafta Issues
4
5
original wan to Macls
The Administration's Caribbean Basin Trade Enhancement Act includes a number of
conditions for receiving the trade benefits, after three years, which are really matters to be
included in the text of a bilateral trade agreement, but because of their bilateral nature,
are not appropriately issues to be included in the legislation of an individual country. If
the Enhancement Act were to be revoked say , in five years, the beneficiary countries
would lose the trade benefits but would have had to comply with the conditionalities, and
would have no recourse to obtain remedies.
While it is true that the legislation seeks to be a stepping stone to Nafta membership, it
should not unilaterally obligate a beneficiary country to adopt and comply with a
number of chapters of the Nafta treaty to which this country is not yet a party to. The
three countries that have signed the Nafta have recourse to a dispute settlement
mechanism, but the Central American and Caribbean countries would have no access to
it. Also, Mexico was granted a number of years to comply with these requirements,
while Central American and Caribbean countries would have to comply immediately.
The specific issues involved are:
a) Conditionalities
The administration's discretionary authority to determine if CBI countries have
satisfactorily, fulfilled conditionalities are too extensive.
LAnger
from Coud Rosalit to ondixxin
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Bill
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b) Intellectual Property Rights
The Enhancement Act correctly requires that beneficiary countries comply with Uruguay
Round Agreement Act IPR issues. However it also requires compliance with the
additional standards established in chapter 17 and article 1711 (6) of the Nafta.
c) Protection to U.S. Investors and Investments
The Enhancement Act conditions benefits to compliance with chapter 11 of the Nafta.
d) Most Favored Treatment to U.S. Goods
This is also a matter for international convention, not the law of one country.
e) Safeguard Provisions
The safeguard provision is really a treaty matter and would imply the renouncing of
WTO rights.
II Non-Nafta and Non-Trade Issues
The Enhancement Act also includes conditions which were never required from Mexico
under the Nafta, because they are not trade related. They should not be included in a
trade bill.
These are:
1) "Certification" on drug-trafficking.
2) Having signed a convention regarding extradition of nationals.
3) Having signed the Inter-American convention against corruption.
-3-
The San José declaration provides the adequate institutional mechanism which will
permit continuous treatment of all the above mentioned issues and this mechanism should
be enhanced
III Some Provisions Included in the House Bill which are Beneficial to
the Caribbean and Central America and which do not Appear in the
Administration Bill
Section 809
The bill approved by the House includes duty free imports under section 809. This
allows imports of apparel, made out of US cloth cut in beneficiary countries.
IV Other Provisions Included in the Administration Bill which are
Prejudicial to the Caribbean and Central America and which do not
Appear in the Bill Approved by the House.
Ratchet Down
The administration bill reduces the bilateral textile quotas negotiated with each country
by an amount equal to the quantity of apparel imported under the Caribbean Trade
Enhancement Act.
This provision violates the principles established under the agreement in textiles and
clothing (ATC) which clearly states that a member's access to a market, can not be
reduced (Art. 4)
CENAMBS.WPD
Page 1
July 14, 1997
BRIEFING MEMORANDUM FOR MACK MCLARTY
From:
Dan Lesmez
cc:
Nelson Cunningham
Eric Farnsworth
Steve Ronnel
Subject:
Briefing for the Central American Ambassadors on the CBI Trade Enhancement
Legislation Regarding the Administration's Involvement, the Status and Outlook for the
Legislation
This is the third meeting you are holding with the Central American Ambassadors related to the
CBI Trade Enhancement Act (CBITEA) over the last year and half. This meeting is taking place
at their request.
Administration Involvement
The President's commitment to the legislation has been firm all along, beginning with its
inclusion in his FY 1998 budget submission to the Congress in February. It has served as
the catalyst to get us where we are today.
The President asked me, some time ago, to take the lead in pushing this legislation, and he
has recently asked me to coordinate Presidential trip follow-up, and to heighten my role as
coordinator for Caribbean Basin issues.
For the past several months, my office along with the USTR, NEC and NSC has convened
several inter-agency meetings to advance the legislative process. The Administration's
legislation was transmitted to the Congress on June 17th. Subsequently, I had a few
conversations with Senator Graham, and he agreed to introduce the Administration's bill
(S.984) co-sponsored by Senators Mack, McCain, Dewine and Moseley-Braun.
Congressman Rangel introduced it in the House (H.R. 2096).
Last week was very productive for this legislation, as I proceeded to contact a number of
key legislators to impress upon them the high priority that the Administration places on
the CBITEA legislation and that we remain flexible on the content of the legislation. I
spoke with Majority Leader Lott, Senators Lautenberg and Lugar, and the staffs of
Chairman Roth and Speaker Gingrich about this legislation and asked for their support
during the conference process. And Senator Lott, at his daily press conference the next
morning stated that he favored expanded trade relations with Caribbean nations.
This week my office will be working closely with Chairman Roth's staff, whom the
Chairman designated to direct a conference process involving key bipartisan staff from the
Senate and the House aimed at obtaining a joint conference offer.
CENAMBS.WPD
Page 2
Internally, I also have coordinated efforts on CBITEA with Treasury Secretary Rubin,
Undersecretary Stu Eizenstadt, and several key people at the White House.
Secretary of Treasury Rubin sent a letter to the House Conferees which contained
information indicating to them the President's strong commitment to provide relief to CBI
nations from the unanticipated trade and investment diversionary effects of the NAFTA.
And, last week Secretary Rubin agreed to speak with Senator Moynihan about this issue,
as the Senator appears to be softening his stance in firm opposition to the CBITEA.
Again, a very productive week.
The Competing Proposals and Outlook
The proposal sponsored by Rep. Crane includes a year-plus authority, which hardly begins
to provide the type of relief that is needed for the CBI region. It is understandable that
with such a short time horizon in the Crane proposal, it would be hard justify inclusion of
the phased-in benefits and reciprocity that are sought in the legislation sent up by the
Administration.
The Administration's proposal, in keeping with Summit of the Americas declaration of
principles, as well as that of other follow-on Summits, believes that the enhanced trade
benefits that CBI nation's will receive need to be used wisely to simultaneously help
prepare these nations for the incorporation into the FTAA by 2005. All of the
democratically-elected governments of the hemisphere are committed to making
substantial progress by the year 2000, and that is why the Administration's proposal
includes the phased-in benefits and reciprocity.
As I stated earlier, we remain flexible on the content of the legislation. Ideally, we would
prefer our 8 year proposal. However, politics is the art of compromise, so this week I am
convening an interagency process to come up with the Administration's position on
CBITEA legislation and communicate it to the conferees. We are doing what we can, and
we need you to maintain your active involvement.
Central America Trade and Investment Council Meeting
If asked about the Central America Trade and Investment Council (TIC) meeting, USTR sent a
communique last week to all the countries that attended the San Jose Summit, informing the
Trade Ministers of the upcoming TIC meeting in Washington on July 23rd including a proposed
agenda.
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July 11, 1997
For your meeting with Mack:
Anything less than an energetic campaign from the White House on this issue will be
seen in Central America and especially the Caribbean as backtracking on the President's
commitment during his San Jose and Barbados summits.
-- We are preparing talkers for Secretary Albright to follow up with Moynihan and Roth
AAMA's take on Moynihan, after the call with apparel industry reps, is that he
might be winnable, at least not to actively oppose the bill
According to Crane's trade staffer, Meredith Broadbent, the majority of House
conferees are lined up in favor of CBI enhancement.
We need to kick off a negotiation to revise the Crane bill. USTR leadership and
dedication to the process will be crucial.
-- Assuming we go with the Crane bill's level of benefits, we see four main issues for
negotiation:
Length: If we can't get eight years, we ought to try for four, noting that the
Andean Preferences Act terminates in December 2001, or at a minimum two. Of
course, the longer the program, the richer the off-sets (about $200 million-per year
at zero duties).
Conditionality: Our bill's labor and environment provisions are tied closely to
current GSP language and ought to be saleable to Republicans while helping to
buck up Moynihan. We could look at something like "willingness" to engage in
discussions to improve investment and IPR regimes. We would probably have to
shed some of our dozen conditions.
Fabric: Our bill ties eligibility to greater use of U.S. fabric in apparel
manufacture. ATMI has opposed the Crane bill's rules of origin as too loose.
Other exports: A major ATMI complaint, the Crane bill does not reduce CBI's
current access for apparel assembled from "third-country" (non-U.S. and non-
CBI) components. Our bill reduces access but provides a petition mechanism to
allow some trade. ATMI prefers our provision.
Bryan
Clear: EB:Shaun Donelly
July 10, 1997
BRIEFING MEMORANDUM FOR THE SECRETARY OF THE TREASURY
ROBERT RUBIN
FROM:
MACK MCLARTY
COUNSELOR TO THE PRESIDENT AND SPECIAL ENVOY FOR THE
AMERICAS
Subject:
Provision in the Budget Reconciliation Bill Providing Enhanced Trade
Benefits to Nations Involved in The Caribbean Basin Initiative
This is to follow up on the conversation we had this morning regarding your meeting at Noon
today with Senator Moynihan to review the Administration's position on a host of provisions
currently attached to the Budget Reconciliation measure moving through the House of
Representatives and the Senate.
I was glad to see that in your July 3 letter to the House Conferees you indicate that high priority
that the Administration places on keeping a provision in the Budget Reconciliation bill that will
provide enhanced benefits to Nations involved in the Caribbean Basin Initiative. The letter helps
to affirm the President's pledge to these nations, during his trip in May, to work with the
Congress to provide relief from the unanticipated trade and investment diversionary effects that
NAFTA has had on them during the past three years.
The inclusion of a trade enhancement provision in the final budget reconciliation bill will also
serve as a strong signal that the President is following through on the commitments outlined in the
Bridgetown Declaration of Principles, signed by the Heads of State, to increase cooperation along
the regional economic and security front. The introductory paragraph of this declaration states
the following:
"We, the Heads of Ste and Government of Caribbean nations of [each nation is listed]
and of the United States of America, meeting in Bridgetown, Barbados on May 10,
1997, pledge to strengthen our cooperation in responding to the challenges of the coming
millennium, in a spirit of partnership and mutual respect."
The proposed U.S.- Caribbean Basin Trade Enhancement bill is part of an integrated
Administration-wide strategy to advance economic progress and promote regional cooperation
throughout the Caribbean. It signals our intention to expand trade with Caribbean countries on
terms consistent with the objectives of the Free Trade Area of the Americas.
The key to the success of the existing CBI program, and of what is contemplated in the enhance
benefit measure, is that the trade provides benefits to both the U.S. and to the Caribbean
countries. The majority of our apparel imports from Caribbean countries contain substantial U.S.
content. This means U.S. producers and workers make the fabric and the other inputs (linings,
sewing thread, notions) that go into the CBI's apparel; U.S. companies employ people in cutting
and distribution in the U.S. and so on. By expanding the benefits, particularly in the textile and
apparel sector, to Caribbean nations, U.S. companies will increase market share of apparel made
with U.S. content, particularly as we approach the opening up this sector under the WTO Sectoral
provision in 2005. Otherwise, U.S. producers will be susceptible to greater imports from
countries outside of the region that do not use U.S. content in their apparel.
Beyond the economic benefit of the enhance trade, Caribbean nations will be in a much better
position to combat the evil forces of narcotics trafficking as pledged to in the Bridgetown
Declaration. Unless these nations are able to stem the diversionary impact that NAFTA is having
on their trade and investment, workers who are displaced from their jobs will have few choices to
turn to.
You should know that Senator Lautenberg, a conferee on tax matters, met yesterday with Senator
Moynihan on this issue. He brought along with him a CEO from a major apparel manufacturing
firm based in his State, with facilities in the majority of the States. During the meeting, Senator
Moynihan surprised both the Senator and CEO stating that he understood the diversionary effects
that NAFTA is having on the Caribbean region and that he felt that it is time to provide these
nations with some relief through enhance trade benefits.
See
DEPARTMENT THE THE INTANCIAL
i
Mack
page
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Dan
1789
DEPARTMENT OF THE TREASURY
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Stare
WASHINGTON, D.C.
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Eric
SECRETARY OF THE TREASURY
July 3, 1997
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Nelson
U.S. House of Representatives
Washington, D.C. 20515
Dear Conferee:
We are pleased that substantial progress has been made toward implementing the terms of the
historic bipartisan budget agreement between the President and the Congress. We look forward
to continuing bipartisan cooperation as we work together to produce a tax-cut package that
fulfills the agreement and best serves the American people. To that end, I would like to share
with you the Administration's views on major issues in conference on the tax portions of revenue
reconciliation. In addition, we expect to communicate further with you regarding provisions not
addressed in this letter.
In general, as we have previously indicated, the Administration strongly believes that any tax-cut
package must meet four basic tests to reflect sound policy. First, the tax cuts must be fiscally
responsible by avoiding an explosion in revenue costs in later years. Second, the tax cuts must
provide a fair balance of benefits for working Americans. Third, the tax cuts must encourage
economic growth. Fourth, the tax package must reflect the terms of the bipartisan budget
agreement, including a significant expansion of opportunities for higher education for Americans
of all ages. Neither bill meets these tests.
While the Senate bill is an improvement over the House bill, both bills provide too little tax relief
to middle-income families. In both the House and Senate bills, the middle sixty-percent of
families receive just one-third of the tax cut; these families would receive twice as large a share
under the President's proposal.
Education Tax Incentives
We are pleased that each bill contains a version of the President's HOPE Scholarship proposal.
Nonetheless, both the House and Senate bills are inconsistent with the bipartisan budget
agreement because they fall far short of meeting the specific agreement of providing roughly $35
billion over five years of higher education incentives along the lines of the President's HOPE
Scholarship credit and tuition deduction proposals.
While the HOPE Scholarship credit as modified in the Senate bill is an improvement over the
version in the House bill, each bill significantly reduces the value of education benefits for millions
of students attending low-cost institutions by cutting the percentage of expenses covered by the
credit (50% in the House bill, 50% to 75% in the Senate bill).
Neither bill includes a widely available tuition deduction or credit to help beyond the first two
years of higher education that is consistent with the tuition deduction in the President's budget
proposal. We are particularly concerned that neither bill significantly promotes life-long learning,
which we believe is a critical component of education in our changing economy. In addition,
neither bill offers low-income students and students who work to pay tuition meaningful help
beyond the first two years of higher education. Instead, the bills require taxpayers to have the
funds available to put into savings in order to be entitled to any assistance other than for the first
two years.
We also object to the education IRAs and prepaid tuition account provisions of both bills. These
provisions fail to place sufficient limits on the income of contributors, the amounts contributed,
and the uses of funds to ensure that the tax benefits go to those who need real relief from the
costs of higher education. Because most workers already have an opportunity to contribute to tax
deductible IRAs and the President has proposed to allow penalty-free IRA withdrawals to be used
to finance higher education expenses, the education IRAs and prepaid tuition plans in the House
and Senate bills will largely become vehicles to provide tax breaks for saving by upper income
taxpayers that would have occurred anyway. We also object to the provision in the Senate bill
that allows tax-free withdrawals from these accounts for primary and secondary school tuition,
because it provides Federal subsidies to parents who send their children to private elementary and
secondary schools.
Overali, as compared to the President's proposals, both packages direct more benefits toward
upper-income families while reducing the benefits to lower-income families, particularly those
who rely on their earnings to finance higher education. The packages are clearly inconsistent with
the bipartisan budget agreement.
Administration Position:
HOPE Scholarship and 20 percent Tuition Credit: The Administration remains strongly
committed to the principle that the education tax incentives must be fair, must genuinely
expand educational opportunities for Americans, and must promote life-long learning. To
accomplish these objectives, the Administration believes the conferees should provide
roughly $35 billion over five years for higher education by adopting the HOPE
Scholarship, which gives a credit of 100 percent of the first $1,000 of tuition and fees, and
50 percent of the next $1,000 in 1998 through 2002. Students must attend school at least
half time in the first two years of a post-secondary degree or certificate program. If a
student is not eligible for the HOPE Scholarship but is pursuing a post-secondary degree
or certificate or is enrolled in classes to improve job skills, a 20-percent credit for tuition
and fees up to $5,000 through 2000 and $10,000 thereafter should be granted.
This proposal addresses Congressional concerns in two ways: it lessens concerns about
tuition inflation by limiting the marginal subsidy of the HOPE Scholarship to 50 cents on
the dollar (rather than dollar for dollar) for students with tuition between $1,000 and
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$2,000. It also increases the progressivity of the tuition deduction by converting it into a
20-percent credit.
Administration Position on Other Features in the Education Packages
In addition to providing $35 billion for the HOPE Scholarship and 20-percent tuition
credit, the Administration believes that the tax package should do the following:
Adopt proposals to aid K-12 public school construction (and other activities) in
poor neighborhoods.
Make permanent the exclusion of employer-provided educational assistance from
taxable income and extend the exclusion to graduate education (Section 127).
Adopt a student-loan interest deduction and a loan forgiveness exemption similar
to those contained in the Senate bill.
Provide tax incentives to help public elementary and secondary schools obtain up-
to-date computer technology.
Include a proposal to repeal the $150 million bond cap for new capital
expenditures by private colleges and universities.
Child Credit
We are pleased that both the Senate and House bills include credits for families with children. We
are deeply concerned, however, that relative to the President's proposals, the Senate bill denies
the child credit to 3.8 million low-income, working families who earn less than $30,000, and the
House bill denies the credit to 4.8 million of these working families. These families pay significant
payroll and other federal taxes, and deserve a child credit to help raise their children just as much
as other families. Accordingly, we object to stacking any portion of the child credit after the
earned income tax credit unless the child credit is fully refundable. We note that both the 1995
Balanced Budget Act passed by Congress and the legislation introduced by Majority Leader Lott
(S.2) this year, stacked the child credit before the EITC, as did the Democratic alternatives
drafted by Representative Rangel and Senator Daschle. The Democratic packages also contained
refundability features consistent with the Administration's proposal. In addition, we have a major
objection to the provision in the House bill that would reduce tax benefits for many working
families who are entitled to a tax credit for their child-care expenses under current law.
Administration Position: The Administration believes the child credit should be stacked
before the EITC. The $500 child credit ($400 in 1998) should be available for children
under 17 through 2002 and under 19 thereafter. In addition, the child credit should be
refundable to the extent that the family's payroll taxes exceed their earned income tax
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credit. The credit should be accompanied by an optional Kidsave Account that allows
parents the option to contribute up to the amount of the credit plus $500 per child to a
nondeductible, backloaded IRA-type savings vehicle. Under this proposal earnings could
be distributed tax-free for a child's post-secondary education or purchase of a first home,
or for the parent's retirement, and the income limits would be the same as in the
President's proposal (phased out between $60,000-$75,000 through 2000, and $80,000-
$100,000 thereafter). The child credit and its income thresholds should be indexed for
inflation.
We note that the Senate adopted Senator Kohl's amendment to provide new incentives to
expand the availability of licensed, accredited day-care facilities for working parents.
Improving the quality and availability of child care for working families is an objective we
share.
Capital Gains Relief
We are pleased that both the Senate and House bills contain the President's proposal to exclude
up to $500,000 of capital gains from home sales. The Administration has recently announced its
intention to expand the scope of existing provisions for targeted small-business capital gains relief.
We are pleased that the Senate bill incorporates a provision that is, in many respects, consistent
with our proposal, although we have concerns about certain aspects of the Senate version.
We object to the additional across-the-board capital gains relief in both bills, which is too
generous and would disproportionately benefit the wealthy over lower- and middle-income wage
earners. Moreover, we are opposed to indexing capital gains as is done in the House bill.
Indexing would contribute to an explosive revenue cost after 2007, possibly jeopardizing all our
important work on deficit reduction. In addition, indexing is enormously complex and would be
difficult to administer. We also object to the provision in the House bill for corporate capital
gains relief, which is unwarranted and unlikely to create any significant economic growth.
Administration Position: The Administration urges the conferees to provide a 30-
percent exclusion for long-term capital gains. This reduces the top rate on capital gains to
27.72 percent for taxpayers in the 39.6 percent bracket. The President's proposal reduces
the tax rate to 19.6 percent for taxpayers in the 28 percent bracket and reduces the tax
rate to 10.5 percent for taxpayers in the 15 percent bracket. The proposal would include
the President's home sale provision and targeted small-business capital gains relief.
Alternative Minimum Tax Relief
We are pleased that the House bill incorporates a version of the President's proposal to exempt
small corporations from the AMT. We also acknowledge the importance of provisions in each bill
designed to compensate for the previous lack of indexing of the individual AMT exclusion for
inflation. We object, however, to the House provision that would provide $22 billion over five
years in unwarranted AMT relief for large corporations.
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Administration Position: The House provision for AMT relief for large corporations
should not be adopted.
IRAs and Other Savings Incentives
The Administration continues to believe strongly in the importance of encouraging savings,
particularly for retirement and education, and supports the IRA concept. The President's proposal
includes a new saving vehicle targeted toward middle- and lower-income families, allowing
parents to contribute to Kidsave accounts for their children's education, first-time home purchase,
or the parents' retirement. The Administration's proposal would also encourage increased savings
by middle- and lower-income families by making existing IRAs more flexible.
We believe it is important that new savings incentives be sufficiently targeted in order to ensure
they generate new savings and to provide savings for those who need them most. The back-loaded
IRAs in both the Senate and House bills are not sufficiently targeted to lower- and middle-income
families. The lack of income limits for contributors to these back-loaded IRAs compounds the
out-year cost explosion. Out-year explosion of revenue cost is inconsistent with the bipartisan
budget agreement. Because most workers can contribute to tax-deductible IRAs, the new
provisions will largely displace saving that would have otherwise occurred by upper income
taxpayers. Targeted incentives such as the Administration's optional Kidsave proposal will be
more successful in significantly increasing new saving. The back-loaded IRA provisions
contained in the Senate and House bills also add significantly to the problem of unfair distribution
of tax benefits.
Administration Position: The current structure of IRAs should be continued with the
following modifications. Penalty-free withdrawals from existing IRAs should be allowed
to finance higher education expenses, for first-time home purchases, and for certain other
limited purposes. Optional Kidsave accounts should be provided for taxpayers who are
entitled to a child credit, with contributions limited to the amount of the child credit plus
$500 per child.
Estate Tax Relief
We are pleased that both the Senate and House bills have included versions of the
Administration's proposal to provide liquidity relief for estates containing small businesses and
farms. We object, however, to the sweeping estate tax relief in both bills because it is too
expensive and will be of no benefit to average Americans. It contributes to the problem of
exploding out-year costs. We also object to the provisions in the Senate bill that would allow
inappropriate tax-planning opportunities by providing special estate and gift tax treatment for pre-
paid tuition plans and an estate tax exclusion for conservation easements. Further, the unlimited
repeal of the so-called "throw-back" rules in the House bill would allow certain trusts that are
already tax-advantaged to reap additional, unwarranted tax benefits. We believe that estate and
gift tax relief is most productively targeted to owners of small businesses and farms, along the
lines of the small-business and farm provisions in the Senate bill.
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Administration Position: The Administration believes a special exemption should
be given for $900,000 of value in a qualified farm or small business in addition to
the $600,000 value of the unified credit; the value of estates eligible for liquidity
relief should be included as proposed in the Administration's FY 98 budget. The
throw-back rules should be repealed, but the status quo should be retained under
the throw-back rules for the pre-1984 trusts that are already entitled to a special
exemption from the multiple trust rules.
Distressed Areas and Urban Tax Initiatives
The May 15, 1997 letter to the President from Speaker Gingrich and Majority Leader Lott
pledged to seek inclusion of the President's proposals intended to revitalize distressed urban and
rural areas throughout the country. We object to the inclusion in the Senate and House bills of
only very limited aspects of some of these initiatives, and omission of other important initiatives
altogether. For example, the President's brownfields proposal, which provides a tax incentive for
environmental cleanup and encourages economic development in formerly contaminated areas,
has been strongly supported in urban and rural communities and by the Nation's mayors. In
addition, while we are pleased the House included a modified version of the President's welfare-
to-work tax credit proposal, we are disappointed the Work Opportunity Tax Credit (WOTC)
contained in both the House and Senate bills allows employers to claim the WOTC for hiring
workers for a very short period of time and does not expand the Food Stamp target group in the
WOTC to cover childless, able-bodied adults ages 18-50 who are subject to the Food Stamp time
limit and work requirements.
We are also pleased that both the Senate and House bills include tax incentives for the District of
Columbia, but we have significant concerns with specific proposals in both bills. We look forward
to working with you to pass a package of D.C. incentives that will be of greater benefit low-
income District residents.
Administration Position: The tax bill should include the following provisions to help
address the problems of distressed areas and our cities.
Include the President's D.C. incentives.
Provide tax incentives to clean up brownfields in distressed communities across the
United States.
Expand Empowerment Zones and Enterprise Communities.
Stimulate investments in Community Development Financial Institutions.
While we would support the House provision on the enhanced welfare-to-work tax credit
for long-term welfare recipients, the credit should be changed to 50 percent for both years.
In addition, we would make no change in the current structure of the WOTC regarding
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number of hours or credit structure, and would expand the Food Stamp target group to
cover the 18-50 year olds. The package should also include provisions to facilitate
restructuring our Nation's affordable housing portfolio, and provide tax incentives for new
economic activity in Puerto Rico.
Superfund
Consistent with the President's 1998 budget, the Administration supports the extension of the
current Superfund taxes through 2007 in order to fully carry out the President's initiative to
achieve clean-up at two-thirds of the national priority list sites by the year 2000. Funding for this
initiative was a protected priority under the bipartisan budget agreement.
Independent Contractors
We object to provisions such as those in the House bill that would provide a new safe harbor for
independent contractor status. These provisions would permit employers to avoid essential
worker protections and could lead to widespread shifting of employees to independent contractor
status, resulting in loss of worker protections such as pension and health coverage, and wage and
hour protections, unemployment insurance benefits and compensation for work-related injuries.
An issue of such significance requires much deeper and fuller study and input from all affected
parties.
Administration Position: Do not include provisions on independent contractor status.
Extension of Airport and Airways Trust Fund Taxes
We object to the changes in the structure of the airport and airways taxes made in the House and
Senate bills. Just last year Congress directed the creation of the National Civil Aviation Review
Commission to perform a thorough analysis of the costs of providing FAA services to ensure that
any new fee structures would reflect the use of those services. Both the House and the Senate
bills would set new fee structures without the benefit of the Commission study. These proposed
fee structures could have enormous unintended consequences for the U.S. airline industry.
Administration Position: Extend the current airport and airways trust fund taxes so the
National Civil Aviation Review Commission has sufficient time to study the issue. When
it has completed its work, its findings should be taken into account in modifying or
amending these taxes.
Tobacco Tax
The Senate bill contains a provision to raise tobacco taxes by 20 cents a pack, using part of the
tax to fund children's health care. We have a significant concern about the use of the revenues
from this tax. All of these revenues should be committed to benefit children and health care, and
not to pay for tax cuts. We are also concerned that the funding for children's health derived from
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the tobacco tax sunsets in FY 2002. We urge the conferees to continue funding for children's
health beyond FY 2002.
Administration Position: We support a 20-cent increase in the tobacco tax - we agree
that it complements the budget agreement - and we endorse the idea of using all of the
revenues raised by such an increase for initiatives that focus on the needs of children and
health. We urge the Conferees to invest all of these funds wisely in order to ensure
meaningful coverage for millions of uninsured children.
The Deductibility of Health Insurance Premiums
The Administration does not support the proposal included in the Senate bill to increase
deductibility of health insurance premiums for the self-employed to 100 percent by 2007. It is
unlikely that parity between the tax treatment of health insurance costs for employees and for
self-employed individuals would result from increasing the tax deductibility of health insurance
premiums for the self-employed to 100 percent. Since it is typical for employers to pay for only a
portion of their employees' (or retirees') health care costs, the rest often is paid by employees and
former employees in the form of after-tax contributions. The increase to an 80-percent deduction
that the Administration supported in HIPAA will come closer to providing rough parity between
employees over their careers and self-employed individuals than a 100-percent deduction for
self-employed individuals. The Administration believes that HIPAA addresses this issue in an
appropriate way and will continue to work in support of proposals that expand health insurance
coverage in an equitable manner.
Explosion of Costs in Out Years
As discussed in the May 15, 1997 letter from Speaker Gingrich and Majority Leader Lott, tax
provisions of the budget reconciliation bill "shall not cause costs to explode in the outyears." This
statement notwithstanding, the net tax cuts called for in the House bill increase to $40.9 billion in
2007 from $29.7 billion in 2004. The net cuts in the Senate bill increase to $41.1 billion in 2007
from $29.0 billion in 2004. This trajectory of revenue loss is not the inevitable consequence of
the tax cuts specified in the bipartisan budget agreement. The net cuts in the President's proposal,
for example, only increase from $30.5 billion in 2004 to $34.1 billion in 2007.
The tax items causing out-year costs to increase sharply are those that disproportionately benefit
high-income taxpayers. In contrast, provisions that benefit middle-income families, such as the
President's education proposals and the child credit, over time become much less significant in the
overall revenue loss under the House and Senate bills. Over the first five years, education and
child credit provisions account for 84.5 percent of the total tax cut in the President's proposal,
72.1 percent in the House bill, and 70.4 percent in the Senate bill. By 2007, these provisions
account for 83.3 percent of the total tax cut in the President's package, but only 38.1 percent in
the House bill and 43.2 percent in the Senate bill. While the significance of provisions targeted
toward middle-income families diminishes over time in the Congressional packages, the cost of
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provisions disproportionately benefiting high-income individuals explode. The capital gains,
AMT, savings and estate tax provisions increase from 10.8 and 12.4 percent of the total gross tax
cuts in the House and Senate bills respectively over the first five years to 55.4 and 53 percent
respectively of the total gross tax cuts in 2007. The rapid growth in the cost of these provisions
between 2003 and 2007 causes us to be greatly concerned about the cost of the Congressional
packages beyond the ten-year budget window.
Simplification
The Administration is strongly committed to simplifying the tax laws and enhancing taxpayers'
rights. In April, we released a revenue-neutral package of some 60 measures designed to further
these objectives. We are pleased that 48 of these proposals are reflected in measures included in
the House or Senate bills. We urge the conferees to give careful consideration to the remaining
simplification measures in the Administration's package, such as the equitable tolling proposal
that would protect the rights of disabled taxpayers, the proposal to simplify the child dependency
exemption rules, and the proposal to modify the rules that apply to financial hedging transactions.
We are concerned that the sheer multitude of miscellaneous tax code amendments, many with
little policy merit, contained in the House and Senate bills will contribute significantly to
complexity for taxpayers and tax planners. For instance, a provision in House bill would change
the current 110 percent safe harbor for estimated taxes to 109 percent for 1997, to 105 percent
for 1998, and back to 110 percent thereafter. This provision is simply a budget gimmick to
artificially shift revenues among fiscal years; it will significantly increase complexity for taxpayers
who must cope with the changing rules.
We urge that all proposals being considered for inclusion in the conference agreement be carefully
analyzed from the standpoint of avoiding needless complexity. Treasury and IRS staff would be
pleased to work with Congressional staff on a technical level to simplify and improve the
administrability of provisions under consideration.
Other Issues of Concern
The Administration is pleased that the House and Senate bills include a provision for foreign sales
corporation treatment for software licensed abroad. We are also pleased that both the House and
Senate bills recognize the importance of the continued assurance of tax benefits for ethanol to
encourage the use of alternative fuels. Earlier this year, the Administration proposed extension of
the excise tax exemption for ethanol in our ISTEA reauthorization proposal. We would support
the Senate bill extending the incentives through 2007, but without phasing down the rates of the
benefits. We also oppose the new scorekeeping language included in the House bill.
The House and Senate bills contain other provisions, however, that raise significant concerns. For
instance, the Administration has serious concerns about the provision in the Senate bill
transferring the 4.3 cents per gallon in fuel taxes currently dedicated to deficit reduction from the
General Fund to transportation trust funds. While the transfer provision in itself has no revenue or
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spending effect, transferring the revenue may spur efforts to move the trust funds off-budget and
create pressure to increase ground transportation spending to levels significantly higher than
contemplated by the bipartisan budget agreement.
The Administration encourages the Senate to recede to the House regarding the Generalized
System of Preferences. While we find the current language in the House bill unacceptable, the
Administration looks forward to working with the conferees on language providing enhanced
benefits to nations involved in the Caribbean Basin Initiative.
The Administration also has technical and/or policy concerns about a number of other provisions
in the House and Senate bills, including, for example: the provision in the House bill that extends
reporting and proxy tax requirements for political and lobbying expenditures; the treatment of
corporate spin-offs within a consolidated group under the House bill's provision relating to so-
called "Morris Trust" transactions; and the provision that removes controlled foreign corporations
from the application of the passive foreign investment company rules. We will be communicating
with you further about such issues in the future. We believe by working together, our staffs
should be able to address many of these problems, and we strongly urge the conferees to
authorize the staffs to begin working on such issues as soon as possible.
Both the Senate and House bills are heavily laden with special-interest provisions, such as a
special exemption from U.S. income tax for foreign seafarers, special tax benefits for vacation
timeshare associations, new tax benefits for friends and family riding corporate jets, and special
treatment of travel and meals expenses for targeted groups of taxpayers. We believe that it is
inappropriate to use this reconciliation bill as a vehicle for new tax breaks for special interests.
We urge the conferees to keep the revenue reconciliation bill clean of all special-interest
provisions.
As the revenue reconciliation bill proceeds to conference, we remain eager to work with the
Congress on a bipartisan basis to fashion, and ultimately sign, tax-cut legislation that is faithful to
the bipartisan budget agreement, meets the four tests outlined at the beginning of the letter, and is
fair to all Americans.
Sincerely,
Robert E. Rubin
June 27, 1997
MEMORANDUM TO MACK MCLARTY
From:
Dan Lesmez Dan.
cc:
Nelson Cunningham
Eric Farnsworth
Steve Ronnel
Ana Maria Salazar
Andrew Friendly
Subject:
CBI Trade Enhancement Legislation Update
Yesterday morning, there was a small meeting in Bill Danvers' office, including
representatives from USTR, NSC and our office, to discuss the status of the CBI Trade
Enhancement (CBITEA) bill the Administration's proposal and the provision included in the
House Ways and Means Committee. The meeting also provided us an opportunity to begin to
map out a strategy for dealing with some of the potential "road-blocks."
Activity heated up on both sides of the Capitol this week, as key parties to be affected by
the CBITEA brought some of their leading representatives to Washington to try to work out a
compromise bill or seek to kill the proposal in the House or in the Conference Committee. The
strongest opposition is coming from the American Textile Manufacture Institute, led by Fruit of
the Loom (FOL) and Milliken (its yarn supplier), unhappy with the Crane provision and the
Administration's bill on two counts: (1) the provision allowing for unlimited export of apparel
made of CBI regional fabric in the region; and (2) the level in the reduction of trade preference
tariffs for qualifying countries that export apparel made of non-regional fabric.
A well focused effort by the Administration should lead to a workable compromise,
which appears to be within reach. There are two or three Senators who are on ATMI's side:
Breaux, Hollings and Thurmond (unclear how much he is willing to weigh in). Prevailing view
on Breaux is that if FOL's concerns can be addressed, he would be willing to back off and maybe
support the inclusion of a CBITEA provision in conference. The ports in Louisiana stand to be
among the biggest gainers from the increased trade resulting from this bill. Moreover, it appears
that FOL is particularly interested in an exemption for "blank" t-shirts setting up a phase-in
period over the next 5 to 8 years for increased imports under this category within the "regional
fabric apparel assembly" provision (WTO sectoral provisions start to kick. Liz Arky at USTR
Congressional Affairs is checking into the feasibility of pursuing such technical changes to the
bill with USTR textile experts.
Senator Moynihan has quite stated that he may pursue the Byrd rule, in a show of support
for Labor, to attempt to knock out the provision from the Budget Reconciliation bill. The Byrd
rule is a technical matter, with a large grey area, by which a provision attached to revenue
legislation can be ruled out of order if judged to require a policy change greater than or equal to
the level of the revenue change. If the parliamentarian rules the Byrd rule in order (usually
subject to the call of the Majority Leader), a 60 vote majority is required to overturn that ruling.
As of yesterday, there were indications that Moynihan may not be as committed as was thought
to pursuing the Byrd rule. Were the Senator to pursue the Byrd Rule, he would likely turn to
Chairman Roth and request that he alert Majority Leader Lott of his intention. Such a move
would effectively knock the CBI provision out the conference bill, as it would be unlikely that
Lott would want to fight for this provision on those grounds.
Action On The Administration's Bill:
The good news is that Congressman Rangel introduced the Administration's bill in the
House yesterday -- H.R. 2096.
Senator Graham introduced the bill this afternoon with the following original co-
sponsors: McCain, Mack, Dewine and Moseley-Braun. Senator Graham's staff spent the past
two days with USTR reviewing the legislation and making technical corrections. Other Senators
rumored to be interested in co-sponsoring the measure, include: Dodd, Toricelli, Lugar and
Grassley. Breaux may sign on [see write up on previous page].
Emerging Short-term Strategy:
Sen. Breaux -- USTR will continue working with his staff next week to get him on board.
Sen. Moynihan -- if he insists on pursuing the Byrd rule, it may be necessary to have cabinet
level contact with him. Suggestions are to have Sec. Rubin or Sec. Albright, who have worked
well with him in the past.
Sen. Hollings -- USTR will maintain contact with his staff.
Longer Term Strategy:
It will be easier to map out an Administration strategy once we know who will be on the
Conference Committee. However, the chances of keeping some reciprocity in the bill will
depend on level of involvement by the Administration (i.e. calls on the Chairmen and
Leadership).
Action For The Office of the Special Envoy:
Of more immediate concern, and an issue that should be dealt with next week is what is the
Administration willing to live with in a compromise proposal. The Administration's eight-year
proposal includes phased-in stepped up reciprocity after the end of the third year. Yet, the
proposal that is likely to emerge from the Conference Committee is likely to include a one-to-
three-year provision. Liz Arky stated that she was unsure about where the Administration
would come out on reciprocity, but that she would check with the technical staff at USTR to see
how the reciprocity might be changed in view of the shorter implementation period.
06/20/97
07:33
202 3959675
IAPL/USTR
001/001
THE
PRESIDENT
Office of
the
OFFICE OF UNITED THE STATES TRADE SIVIS JOHN OF THE OF UNITED THE
Western
Hemisphere
600 I 7TH STREET, N.W.
WASHINGTON, D.C. 20508
0
PHONE 202-395-5190
FAX
202-395-9675
To: Mac McLarty
From: Peter Allgeier
Attached are some talking points we have done on the CBTEA.
CC: Dan Lesmez
U.S. Caribbean Basin Trade Enhancement Act
Talking Points:
Trade Policy and Economic Growth
The increased openness of most Caribbean economies over the past decade, improved
macroeconomic stability, and the growth of foreign direct investment has set CBI
countries on a path toward improved economic growth.
However, these countries will need to make structural reforms in order to take advantage
of the benefits to be derived from a hemisphere-wide free trade zone.
There is a perception among the CBI countries that with the passage of the NAFTA their
opportunities for expanding trade to the United States have been diminished. Our
proposed legislation will encourage countries to make needed structural changes while
addressing their concerns regarding the NAFTA.
The proposed U.S.- Caribbean Basin Trade Enhancement Act is part of an integrated
Administration-wide strategy to advance economic progress and promote regional
cooperation throughout the Caribbean. It signals our intention to expand trade with
Caribbean countries on terms consistent with the objectives of the Free Trade Area of the
Americas.
The CBTEA will allow countries in the Caribbean Basin to enjoy enhanced trade while
helping them to prepare for participation in the Free Trade Area of the Americas. These
new trade preferences would cover all of the products not included in the existing CBI
legislation (i.e., textiles/ apparel, petroleum, footwear, certain categories of flat goods and
gloves, leather apparel, canned tuna and a category of watches).
Certain textiles/apparel products would receive quota-free treatment. The bill would
apply to textile/apparel products meeting the NAFTA rules of origin (essentially a "yarn-
forward" requirement), to certain products assembled from U.S. cut and formed fabrics
made from U.S. yarn, and to handicrafts. The CBTEA includes tariff and quota
safeguards for textiles/ apparel products.
Trade preferences for CBI beneficiaries would be phased-in, with 50 percent of the
benefits available upon implementation of the legislation.
After three years, the second phase of the trade preferences would be granted. Countries
would be able to enjoy full CBTEA benefits by meeting conditions imposed by the
legislation with respect to: (1) compliance with the rules of international trade set forth in
the WTO agreements; (2) intellectual property rights; (3) investment; (4) market access
for certain goods; (5) workers' rights; (6) environmental protection; (7) narcotics
enforcement; (8) corruption; (9) tax information exchange. (10) government procurement;
(11) customs valuation; and (12) the provision to certain products of the United States
tariff treatment no less favorable than that afforded by a CBI country to other countries
under any new free trade agreement
After this second phase, the incentive to meet the conditions would remain, as countries
could begin to enjoy the increased benefits as soon as they could demonstrate that they
have met the criteria imposed by the legislation.
This new trade enhancement program would not be open-ended. Since it is designed as a
bridge to the FTAA, it would terminate in 2005. At that time FTAA negotiations will
have been completed and all beneficiary countries should begin to reap the benefits of the
Free Trade Area of the Americas.
The expanded economic development that will follow enactment of the U.S. Caribbean
Trade Enhancement Act will encourage citizens in beneficiary countries to direct their
energies toward opportunities available in a growing formal economy. Increased
economic growth among CBI countries will provide growing markets for U.S. products
and enhance the ability of our neighbors to ensure justice and security within their own
borders.
Textiles
The common goal of the Administration and many in the textile and apparel industry
groups has been to expand CBI trade preferences to the textile and apparel sector, which
has until now largely been excluded from duty preferences.
This is to respond to the concerns of the CBI countries that feel that they have been
disadvantaged by Mexico having NAFTA benefits for apparel shipments to the U.S., and
also to respond to the concerns of U.S. industry that their own investments and
partnership production operations in the Caribbean have continued viability and success.
The key to the success of the existing CBI program is that the trade provides benefits to
both the U.S. and to the Caribbean countries. The majority of our apparel imports from
the Caribbean countries contains substantial U.S. content.
This means that our producers and our workers make the fabric and the other inputs
(linings, sewing thread, notions) that go into the CBI's apparel; our companies employ
people in cutting and distribution in the U.S., and so on.
The real benefit to the program is that we have seen apparel production come back to our
hemisphere from Asian sources, including China. Last year, imports of apparel from the
CBI grew 12 percent while imports from China were flat and imports from Hong Kong,
Korea and Taiwan declined 8 percent.
Over the 10 year life of the quota preference program for the CBI, imports of apparel
06/17/97 TUE 18:39 FAX
ARA/ CCA
E 001
come AFFRS
003/003
EXECUTIVE OFFICE OF THE PRESIDENT
THE UNITED STATES TRADE REPRESENTATIVE
i
Mack
WASHINGTON, D.C. 20508
2
Sbeve
JUN
3
Eric
4
Den
,
Nelson
The Honorable Albert Gore, Jr.
President
United States Senate
Washington D.C. 20510
Dear Mr. President:
I am transmitting the enclosed draft "United States - Caribbean Basin Trade Enhancement Act"
on behalf of the President. The bill would extend to eligible Caribbean Basin Initiative (CBI)
beneficiary countries certain trade preferences essentially equivalent to those Mexico receives
under the North American Free Trade Agreement (NAFTA). The bill is designed as a
transitional mechanism to ensure that interested countries make meaningful policy changes that
will help them to prepare for accession to the Free Trade Area of the Americas (FTAA).
The bill, as drafted. provides that the benefits would remain in effect until September 30, 2005,
which is based on the date for concluding negotiation of the FTAA.
The Omnibus Budget and Reconciliation Act (OBRA) requires that all revenue and direct
spending legislation meet a pay-as-you-go (PAYGO) requirement. This proposal would reduce
receipts by $101 million in fiscal year 1998 and by $1.3 billion for fiscal years 1998-2002;
therefore, it is subject to the PAYGO requirement. This proposal was included in the President's
FY 1998 Budget. The Administration will work with the Congress to find offsets for this
proposal consistent with the policy of balancing the budget by 2002.
The Office of Management and Budget has advised that there is no objection to the presentation
of this proposal to Congress and that its enactment would be in accord with the program of the
President.
Sincerely,
Charlener
Charlene Barshefsky
Enclosures: Draft United States - Caribbean Basin Trade Enhancement Act
Section-by-Section Analysis
Liz Anly
June 17/97
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4038
THE WHITE HOUSE
WASHINGTON
Neessl
Enichns)
INFORMATION
I twe
MEMORANDUM FOR THE PRESIDENT
Desl
FROM:
SAMUEL R. BERGER
R
GENE SPERLING
DANIEL K. TARULLO
JOHN HILLEY
16111
MACK McLARTY your muse
SUBJECT:
Caribbean Trade Enhancement
Purpose
To update you on our efforts to make good on your pledge to
secure legislation enhancing trade benefits for the Caribbean.
Background
During your visit to the Caribbean and Central America, you
reaffirmed your commitment to work for legislation providing the
same market access to Caribbean and Central American countries as
that provided by NAFTA. We are ready to introduce the Caribbean
Basin Trade Enhancement Act (CBTEA), which would expand the
Caribbean Basin Initiative (CBI) to include textile and apparel
products that are currently restricted. The bill is crafted to
satisfy the domestic textile and apparel industries. It would
phase in over six years duty-free treatment for apparel made with
U.S. or Caribbean cloth. Benefits would be conditioned on
meeting criteria designed to prepare beneficiaries for entry into
the FTAA. They include protections for labor and the
environment.
Legislative Approach
There is broad support for expanding Caribbean trade preferences
among the Congressional Black Caucus, the Florida delegation and
Republican free traders. The Textile Caucus is strongly opposed,
and they may be joined by Democrats concerned about opposition
from the apparel union, UNITE.
We believe that Caribbean trade legislation will not pass this
year unless it is included in reconciliation. USTR had
originally hoped to introduce our legislation with bipartisan
support from key members of Senate Finance and House Ways and
Means. However, Senate Finance Chairman Bill Roth and Ranking
CC: the Vice President
the Chief of Staff
Member Pat Moynihan oppose its inclusion in reconciliation. On
the House side, Ways and Means Chairman Bill Archer has included
funding for a Caribbean trade program in the tax bill, and
Ranking Member Charlie Rangel is a strong supporter.
The House Republican proposal contains inadequate protections for
labor and the environment. Thus, we should not support it, since
that could jeopardize our position with some Democrats in the
run-up to the fast track debate. Neither should we oppose the
Republican proposal now, since it provides a placeholder for
Caribbean trade enhancement in the reconciliation bill -- which
is more than we expect on the Senate side. Therefore, NSC/NEC
principals agree that we should remain silent on the Archer
proposal, while working with Bob Graham, the bill's strongest
supporter in the Senate, to introduce our legislation next week.
Textile Caucus
Although our original budget proposal included offsets for CBTEA,
the budget agreement does not earmark funds for this or any other
trade legislation. John Spratt, the Ranking Member of the House
Budget Committee and a critical ally in the budget process,
strongly opposes this legislation. In his role as Chairman of
the Textile Caucus, he was the chief architect of the defeat of
Caribbean trade legislation in 1995. This year, Spratt insisted
that the budget agreement contain no provisions for Caribbean
trade legislation. On the other hand, he understands that we
will go forward with a Caribbean trade bill, and acknowledges
that the budget agreement in no way precludes funding such
legislation as part of reconciliation.
The Textile Caucus has legitimate concerns. Jobs in the apparel
industry -- generally low-wage, low-skill jobs -- have fallen by
149,000 (15 percent) since NAFTA was signed. The textile
industry -- which includes technologically advanced segments --
has lost 63,000 jobs (9 percent of the total) over the same
period. These job losses have been concentrated in the six
southeast states that account for 44 percent of national textile
and apparel employment, well above their 13 percent share of
total employment. On the other hand, overall employment has
grown 8 percent in these states, roughly in line with the
national rate.
Labor and the Environment
The Archer proposal contains no environmental protections and
weak labor protections. Both Archer and Phil Crane, Chairman of
the Ways and Means Subcommittee on Trade, strongly oppose our
proposed labor and environment conditions, apparently motivated
by positioning for the fast track debate. On the other side,
Moynihan's staff has indicated that our bill is not sufficiently
forward leaning on labor issues.
Caribbean Interests
Caribbean beneficiaries may perceive the Republican bill to be
more generous than ours: it makes full NAFTA benefits
unconditionally available in the first year and provides duty-
free treatment to all Caribbean apparel, regardless of the origin
of the fabric. However, we believe the same provisions also make
the Republican bill less politically viable. In addition, our
bill is economically more meaningful because it includes funding
for five years, while Archer provides funding for a single year.
4038
THE WHITE HOUSE
WASHINGTON
June 9, 1997
ACTION
MEMORANDUM FOR SAMUEL R. BERGER
GENE SPERLING
DANIEL K. TARULLO
JOHN HILLEY
MACK McLARTY
FROM:
LAEL BRAINARD SLB
SUBJECT:
Memorandum to the President Regarding Caribbean
Trade Enhancement
Please find attached a memorandum to the President informing him
or your intention to submit Caribbean trade enhancement
legislation next week and descibing the implications.
suppen
SUB
Concurrence by: Bill Danvers, Jim Dobbins
RECOMMENDATION
That you forward the memorandum attached at Tab I to the
President.
Attachment
Tab I
Memorandum to the President
5/20
MEMORANDUM
MACK- ANNIE HUGHES
OF CALL
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