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5-9-97 Alexis Herman Confinmation Todd Stern Inspector General Documents and Newsclips R Box 2 OF 7 9310 INCLOSURES FILED OVERSIZE ATTACHMENTS NARA 6832 AMH NEWS CLIPS AMH NEWS CLIPS Clinton Presidential Records Digital Records Marker This is not a presidential record. This is used as an administrative marker by the William J. Clinton Presidential Library Staff. This marker identifies the place of a tabbed divider. Given our digitization capabilities, we are sometimes unable to adequately scan such dividers. The title from the original document is indicated below. Divider Title: May 2, 1997 NOTEBOOK HOLLYWOOD NOTES DENIS PAQUIN-AP THOMAS DASCHLE SOUTH DAKOTA COMMITTEE Don't Step AGRICULTURE Anited States Senate FINANCE On My INDIAN AFFAIRS WASHINGTON, DC 20510-4103 VETERANS' AFFAIRS Weekend (202) 224-2321 January 8, 1993 It's been a trying TOLL FREE 1-800-424-98094 couple of weeks for Harrison My Résumé Is Enclosed of the U.S. Trade Representative. Ford. First, his According to Daschle spokeswoman leading lady in It may be a tad embarrassing to admit Ranit Schmelzer, the Senator says the upcoming to writing letters of reference for peo- he doesn't remember how he met Six Days/Seven ple one barely knows, but neverthe- Huang, who became Deputy Assistant Nights, Anne less, that's the position taken by Sen- Secretary at Commerce, and has no Heche, overnight ate minority leader Tom Daschle's recollection of any "economic devel- became the staff when it comes to his hearty rec- opment projects" the two of them col- world's second most famous les- ommendation of one John Huang to laborated on. But Huang did arrange bian. Then he learned that Fox the Clinton transition team in 1993. an April 1991 fund-raising lunch in and Paramount want to open their "I have known John Huang for four Los Angeles for the Senator. Daschle joint $200 million production, Ti- years, having worked with him on a has returned the roughly $3,000 tanic, on July 25-right up against number of economic development raised at that lunch from Huang and his big summer picture, Air Force projects," Daschle wrote to transition- his wife Jane; James Riady, who was One, being released by Columbia. team head Richard Riley. "I can per- Huang's boss at Lippo; Maria Hsia, Ford has generated a lot of loot sonally attest to John's strong back- who would later co-chair the infamous for Paramount over the years, play- ground in trade and Pacific Rim 1996 Buddhist-temple fund raiser ing various Indiana Jones or Tom issues." Huang, who has become the attended by Al Gore; and several oth- Clancy heroes. The star reminded symbol of shady Democratic fund rais- ers. Daschle was not alone in recom- Paramount of that in a Forceful call ing, was then an executive with the mending Huang: the businessman to studio boss Jonathan Dolgen, in Indonesia-based Lippo Group con- was also tipped for a job in a recently which he requested that Dolgen glomerate, and interested in positions released 1992 Democratic National kindly get Titanic the hell out of at Commerce, Treasury and the office Committee memo. -By Viveca Novak his way. The summer is already crowded with costly cinematic ice- bergs, including Conspiracy Theo- The Longest Days ry, starring Mel Gibson and Julia TERRY ASHE FOR TIME Roberts, which is also supposed to Newly confirmed Labor Secretary open on July 25. Alexis Herman discovered last week The studios have known for a that it pays to tough it out through while that Titanic simply wouldn't even the most protracted Senate be shipshape in time for its July 2 confirmation battles. Below, a look at release date. What's not clear is Cabinet-level nominees who cooled whether the film can be ready in their heels the longest: time for any summer date. The unpalatable alternative is to hold it NOMINEE POST PRESIDENT DAYS ON HOLD OUTCOME for November. Until then, Fox in- curs more than $5 million a month A. MITCHELL Attorney WILSON 183 Confirmed in interest charges. PALMER* General Aug. 29, 1919 Fox studio chief Bill Mechanic LEWIS Commerce EISENHOWER 152 Rejected says the Titanic footage looks STRAUSS* Secretary June 18, 1959 great and the decision to make the NIXON Confirmed movie will seem a lot smarter RICHARD Attorney 113 KLEINDIENST* General June 8, 1972 once the public gets a look at it. But given the jam-packed season, ALEXIS Labor CLINTON 113 Confirmed there's no place to park this ocean HERMAN Secretary April 30, 1997 liner. Meanwhile, Air Force One ANTHONY CIA CLINTON 99 Withdrawn has been generating great buzz. LAKE Director April 18, 1997 Should the Ford flick be forced into a battle with Titanic, audi- LAMAR Education BUSH 87 Confirmed ences will have to choose between ALEXANDER Secretary March 14, 1991 the two, giving Titanic a chance to *Served as interim or acting appointee during part or all of waiting period. sink yet again. -By Kim Masters Source: Senate Historical Office 28 TIME, MAY 12, 1997 Appearances can be deceiving, Herman says By Edward T. Pound get off the ground. Weaver USA TODAY was hired to market the pro- ject in sub-Sahara Africa. Alexis Herman, the former Last fall, in a move her White House aide who was lawyer said was unrelated to sworn in as Labor secretary the project, Weaver became Thursday, acknowledges she a major Democratic Party should have been more care- contributor. She and her sis- ful about appearances in her ter gave $150,000 to party or- dealings with a friend and ganizations, state and federal former business associate. campaign records show. Herman's statement was Weaver also took Rahman her first public comment on to a fund-raiser in suburban reports suggesting that she Washington where he spoke may/ have used her White briefly with President Clin- House office to benefit a ton. Herman attended the af- friend, Vanessa Weaver, a fair. Washington management con- Rahman met Herman last sultant. As director of the Of- May 22 at a hotel bar in fice of Public Liaison for the Washington. Weaver and past four years, Herman pro- Yene, who have since fallen vided extraordinary White out, arranged the get-togeth- House access to Weaver and er. According to Yene, Rah- some of her clients. man described the difficul- In response to a continuing ties in-getting a federal USA TODAY inquiry, Her- license for the project. man said in a On May 28, statement last according to week that pub- "I should have banking re- lic officials cords, Rahman "must take spe- been more began paying cial care to attentive. $15,000-a- avoid actions month to Inter- that raise even Alexis Herman national Invest- the appearance ments and of impropri- Business Devel- ety." opments, the firm then USA TODAY Herman acknowledged owned by Weaver and Yene. she "should have been more Weaver, Rahman and the FRIDAY, MAY 2, 1997 attentive to the fact that even White House strongly disput- social interactions might, ed Yene's account of the without my knowledge, serve meeting. They said it was an a commercial purpose for innocuous social gathering of others." However, she said, only a few minutes. The satel- she had "never used my posi- lite project, they said, never tion in the White House" to as- came up. The White House sist Weaver. also said Herman met Rah- The White House said man "a few" more times but Thursday the statement ad- had "no recollection" of ever dresses a number of meetings discussing the project with involving Herman, Weaver him. and others. The satellite system is the E. Lawrence Barcella, who brainchild of a small Wash- is Weaver's-lawyer, said she ington company named Mo- had not tried to exploit her bile Communications Hold- friendship with Herman. ings, Inc., or MCHI. Last Weaver bought Herman's April, MCHI records show, management consulting com- Rahman agreed to help the pany in 1993. Despite ques- company find overseas fi- tions about their ties, the Sen- nancing. But MCHI officials ate never explored their said he was not authorized to relationship during Herman's retain the Weaver-Yene firm. Labor confirmation hearings. Last year, MCHI cam- In several instances, Her- paigned to win license ap- man offered Weaver and proval from the Federal business associates access to Communications Commis- White House meetings or SO- sion. The company failed but cial functions. has another request pending. In another case, Herman The White House said Her- met with Weaver and a Singa- man was not involved in the pore executive named Abdul FCC matter. However, her of- Rahman. Rahman hired fice did have some contact Weaver last spring, days after with the regulatory agency. meeting with Herman, On July 2, several weeks Weaver and her partner, Lau- after her first meeting with rent Yene. Yene said Her- Rahman, Herman's office man's presence helped land forwarded to the FCC a letter Rahman as a client. from a Rahman associate Rahman was then promot- complaining that the FCC's fi- ing a $1.1 billion global satel- nancial standards were bi- lite-telephone project, which ased against MCHI and other needed a federal license to small companies. Clinton Presidential Records Digital Records Marker This is not a presidential record. This is used as an administrative marker by the William J. Clinton Presidential Library Staff. This marker identifies the place of a tabbed divider. Given our digitization capabilities, we are sometimes unable to adequately scan such dividers. The title from the original document is indicated below. Divider Title: May 1, 1997 Herman Confirmed for Cabinet After Concession by Clinton Democratic National Committee between, 1989 By John F. Harris and Frank Swoboda and 1992. Herman had served as head of the Washington Post Staff Writers Woman's Bureau at the Labor Department in Alexis Herman won easy approval in the Sen- the Carter administration, but had only modest ate yesterday to be secretary of labor, a success- connections to organized labor in the intervening ful end to a three-month confirmation battle that years. Prior to her selection, several union lead- came only after President Clinton made a last- ers let it be known privately that they preferred minute concession to Republicans. other candidates. WT For all the controversy and delay Herman's Moments before yesterday's vote, Nickles nomination generated, she was ultimately swept pronounced himself satisfied with the into office by a wide, bipartisan vote-85 to 13. For the administration, however, Herman's struck, participants said, following discussions be passage came at a cost: The White House yes- had with White House Deputy Chief of Staff John terday bowed to GOP demands that Clinton back Podesta, White House congressional haiso John off plans to issue an executive order that was de- Hilley, and other administration officials. signed to encourage union labor on federal con- "I didn't have a problem with Alexis Herman struction contracts. being secretary of labor," said Nickles. "My pur- Vice President Gore had announced the pose was to make sure that the administration planned executive order with a flourish in Febru- does not try to legislate by executive order. ary, a move that was widely viewed in political "Tm delighted that this unconscionable delay circles as a bodquet to organized labor, given in has ended," said Sen. Edward M. Kennedy @- exchange for its support in the 1996 elections. Mass.) "It was a mistake for Republican leader- Sen. Don Nickles (Okla.) had led a Republican ship to hold her nomination hostage on a sepa- charge against the executive order, threatening rate labor issue.' to block a vote on Herman unless Clinton Clinton's proposed order would have dropped the plan. Democrats countered that agencies to sign "project agreements". stipulating they would bring Senate business to a standstill that union labor would be used on unless Republicans acted on Herman's nomina- tracts. Such agreements are typically signed for tion. large, and long-term contracts such as the con Senate and White House negotiators finessed struction of dams. The executive order would an end to the stalemate late yesterday, in a deal that left both sides claiming victory, The White not have been binding, and neither will be Clin- House said that, instead of an executive order, it ton's memorandum. The main differen White would issue a "presidential memorandum" to fed- House officials said, was that a memorandum eral agencies that would have the same effect of lapses when Clinton leaves office, while antixed- encouraging union labor on large contracts. utive order would stay in effect unless a succes- But a spokesman for Nickles boasted that the sor formally rescinded it. THE had forced the administration to back An AFL-CIO spokeswoman said her union down, a view that was shared by the U.S. Cham- was "thrilled" by the outcome of the negotiation ber of Commerce and other groups that had Some in Clinion's own party, however, accused been protesting the planned executive order. him of capitulation. White House officials said the bargain, which A liberal. Democratic official in the House, came together over the past two days, was clear- who asked not to be identified, called the deal ly worth it. Herman's confirmation leaves only that led to Herman's passage a "complete case one person still to be confirmed among Clinton's by the White House. Cabinet nominees-acting CIA director George Gore and House Minority Leader RichardiA. Tenet. Gephardt, whom some Democrats expect tabe And it ends what had amounted to a political high-wire act by Herman as she tried to win con- rivals for their party's nomination in 2000shate firmation. Herman, who will be the only black been engaged in something of a contest towin woman in Clinton's Cabinet, had to answer ques- the affections of big labor. Both gave specials tions about her business affairs and her role in yesterday praising labor yesterday at a gathering providing the administration access to large of American Federation of State, County and Democratic contributors while serving as White Municipal Employees. THIS House director of public liaison in the first term. "You're not ever going to see a proposalthat "I want to thank the Senate for its strong undermines labor principles get past this White show of support for Alexis Herman," Clinton said House," Gore said. "It's not going to happen, in a statement. "There was never any question An hour later, Gephardt told the group that that she was highly qualified to be secretary of last year's overhaul of welfare signed by Clinton labor." and supported by Gore, was a cruel hoax on A veteran Democrat, Herman had also served the poor. "We have to have a set of policies as a chief of staff to then-Commerce Secretary this country that help real people make Ronald H. Brown when he was chairman of the hardt said. ThetWashington Post THURSDAY, MAY 1, 1997 Herman Is Confirmed as Labor Secretary After Clinton Alters Plan to Help Unions By GLENN BURKINS construction money to union-only contrac- Staff Reporter of THE WALL STREET JOURNAL tors. They accuse the president of promis- WASHINGTON-After months of delay ing the deal to organized labor as payback and partisan bickering, the Senate voted for labor's support in last fall's elections. yesterday to confirm Alexis Herman as Denise Mitchell, the AFL-CIO's spokes- labor secretary, filling out the final spot woman, said labor was "just as tickled as in President Clinton's second-term cabi- can be" with yesterday's outcome. "I think net. the president helped the Republicans save The 85-13 vote came quickly after face on this," she said. the White House agreed to drop plans for a With Ms. Herman's nomination locked labor-friendly exec- in the Senate, both sides were eager to find utive order that a solution. Democrats were complaining many GOP senators that GOP delays were hurting the Labor opposed. The Re- Department, where there are several key publicans, led by jobs to be filled. Oklahoma Sen. Don Ms. Herman, 49 years old and a native Nickles and backed of Mobile, Ala., first came to Washington by business groups, with the Carter administration and wás had vowed to block appointed to head the Labor Department's Ms. Herman's nom- women's bureau. She later formed her own ination indefinitely business, advising employers on issues of unless Mr. Clinton racial and gender diversity. In the first backed down. Clinton term, Ms. Herman was director In the end, each of the White House Office of Public Liai- side claimed vic- Alexis Herman son, working to build grass-roots support tory. for the president's policies. The executive order would have re- Meanwhile, a much bigger issue may quired federal-agency heads to consider still be unresolved: the right of President using unionlike labor agreements on all Clinton to issue executive orders that federally funded construction projects. In- Republicans don't like. Sen. Nickles had stead, Mr. Clinton said he would issue an complained bitterly in recent weeks that "executive memorandum" on the matter, Mr. Clinton was overstepping his bounds which, according to White House officials, with executive proclamations. As an exam- carries much the same weight but would ple, he pointed to Mr. Clinton's executive expire along with Mr. Clinton's presi- dency. An order, however, could stand memorandum to the Food and Drug Ad- ministration requiring retailers to check indefinitely unless revoked or changed by a future chief executive. picture identifications of tobacco buyers "I don't think I would define this as a age 27 or younger. compromise," said Gerald W. McEntee, "I feel very strongly that Congress president of the American Federation of needs to reassert itself as the legislative State, County and Municipal Employees branch, and we can't allow the White union. The difference between an execu- House to legislate though executive or- tive order and a memorandum, he said, "is der." Sen. Nickles said recently. a difference without distinction." But with Republicans controlling both But on the Republican side, GOP sena- the House and Senate, the administration tors and pro-business groups said the has become increasingly dependent on president backed down. executive decrees to carry out the presi- "The executive branch does not have dent's agenda. the power to change laws, and this pro- Meanwhile, on Capitol Hill, some Dem- posal would clearly have done that," said ocrats allied with labor complained pri- Sen. Nickles. "I have been assured by vately that the White House had given up White House officials that they will not too much ground to Senate Republicans by issue this order." abandoning the executive order. Critics say the proposed order would -Michael K. Frisby have shifted billions of dollars of federal contributed to this article. THE WALL STREET JOURNAL THURSDAY, MAY 1, 1997 Herman wins Negotiators near deal confirmation for Labor job on $100B net tax cut By William M. Welch The two sides were discussing cutting By Jessica Lee and Bill Nichols taxes over five years by $135 billion to USA TODAY USA TODAY $150 billion, but partially offsetting that by about $50 billion in added revenue WASHINGTON - The Senate con- WASHINGTON - White House and from renewing the airline ticket tax and firmed Alexis Herman as the next secre- congressional negotiators edged closer other sources, participants said. But the tary of Labor by an overwhelming 85-13 to striking a budget deal Wednesday - exact figures remained unresolved. vote Wednesday. possibly as soon as today - as they tried Archer said the general elements of a The vote ended four months of wran- to finalize a package that would include tax-cut package were clear: gling that embrolled Herman's nomina- a net tax cut of about $100 billion. A "broad-based" capital gains tax tion in a partisan test of wills between White House and GOP congressional reduction "must be In the mix," he said. the newly re-elected Democratic presi- By Joe Marquette, AP leaders said they remained hopeful of Clinton keeps hinting he's open to this. dent and a Republican-led Congress. As Herman: Confirmed 85-13 by the Senate reaching a bipartisan agreement this An estate tax reduction. THURSDAY, MAY 1, 1997 White House director of public llalson after federal hiring issue is settled week on a plan to balance the budget A child tax credit, which both GOP with responsibility for building coalitions and end federal borrowing by 2002. leaders and President Clinton have pro- USA TODAY behind Clinton's policies, she became legislative power. He put a hold on Her- There were reports that negotiations posed in different forms. entangled in the White House campaign man's nomination. Sen. Edward Kenne- had reached the stage of haggling over The White House, meanwhile, was try- fund-raising scandal. Later, her nomina- dy, D-Mass, countered by halting Senate the way to stage the announcement of an ing to include sufficient increases In do- tion became enmeshed in a duel over floor action Tuesday and threatening to agreement. But both sides continued to mestic spending to allow Democrats to the extent of presidential authority. bottle things up indefinitely. caution that a deal was not certain. claim victories on Issues such as chil- After a three-month Investigation Into The standoff ended in a draw Wednes- House Budget Chairman John Kasich, dren's health care, education, worker Herman's background and qualifica- day when Clinton announced he will is- R-Ohio, compared the effort to climbing training and the environment. tions, the Senate Labor Committee unan- sue an executive memorandum, not an Mount Everest: "We've broken through Congressional Democrats were not so imously recommended on April 10 that order. An order would carry the force of the clouds, but we're not there yet." sanguine. Many liberals were concerned she be confirmed. Herman, 45, is a na- law. A memo encourages agencies to GOP conservatives, who had been that both the tax cut figure and spending tive of Mobile, Aja., former Democratic take such action. worried that the deal wouldn't cut taxes reductions would be too high. Party executive and an expert on labor Republicans and construction Indus- or spending as much as they want, Emotions ran high at a closed-door market diversity Issues. try representatives portrayed Clinton's seemed to be warming to the tax provi- caucus of House Democrats Tuesday But Senate Republicans refused to change as a victory. sions under discussion by negotiators. night. Rep. George Miller, D-Calif., a lib- schedule a vote after Vice President Herman's supporters cheered her Rep. David McIntosh, R-Ind., said a eral, said the tax cuts under discussion Gore announced that the administration long-sought confirmation. "She takes the net tax cut of $100 billion over five years, "could be catastrophic for the Demo- would Issue an executive order encour- helm at a time when the Department of with potentially larger tax reductions if cratic Party." aging government agencies to award Labor's role in the Implementation of offsetting revenue Increases are found, But White House officials are spend- contracts to companies that bargain with welfare reform and other important is- has the potential to win conservatives' ing lots of time trying to shore up the workers - most often through unions- sues is greater than ever before," said support. Democratic base. Clinton has pledged to on pay and employment issues. Republi- Wade Henderson, director of the Lead- "The work-in-progress that John (Ka- win a majority of Democrats in the cans say such an order would put non- ership Conference on Civil Rights. sich) has been showing us looks pretty House and Senate for any budget deal. union businesses at a disadvantage. President Clinton, who chose Herman good to conservatives," McIntosh said. The administration believes It can win Sen. Don Nickles, R-Okla., assistant for the job Dec. 21, Issued a statement House Ways and Means Chairman Bill that majority, said spokesman Mike majority leader, also blasted Clinton's thanking the Senate for its "strong show Archer, R-Texas, said he too would be McCurry, but White House officials plan as an attempt to usurp Congress' of support." happy with $100 billion in net tax cuts. know "we'd have to work It." After Impasse, Senate Confirms Clinton's Choice for Labor Post 2 Sides Claim Victory With Unions Compromise AI By JERRY GRAY WASHINGTON, April 30 - After "President Clinton gave up noth- months of delay, the Senate today ing substantial," said Senator Ed- approved Alexis Herman as Secre- ward M. Kennedy of Massachusetts, the senior Democrat on the Labor tary of Labor. Her nomination, held Committee. up initially over her role in campaign He said unionized labor "will be fund-raising, was cleared after a considered and given important new compromise with the White House emphasis by all Federal agencies on ended an impasse over union labor appropriate Federal construction on Federal contracts. projects." The confirmation vote was 85 to 13 Off the Senate floor, powerful lob- and provided an anticlimactic post- Intelligence unfilled. The President's bying groups on both sides of the script to the bitter partisan dispute first choice for the job, Anthony dispute continued their fight. that had whirled for months around "The withdrawal of this proposed Lake, withdrew his nomination un- Ms. Herman's nomination and had executive order is an outright vic- der a barrage of political questions threatened to block Senate action on tory for American taxpayers, con- and the White House then nominated an array of unrelated measures. George Tenet, a career employee of The vote came after President Continued on Page A26 the C.I.A. Clinton backed away. from his inten- President Clinton nominated Ms. tion to issue an executive order that Continued From Page Al Herman, the director of the White would have directed Federal agen- House Office of Public Liaison, for cies to consider awarding large Fed- struction workers and business, and Labor Secretary on Jan. 7. eral construction projects to compa- nies with unionized labor. a repudiation of big labor's attempt While members on both sides of The Senate majority leader, Trent to buy with political contributions, a the aisle initially spoke favorably of Lott, said Mr. Clinton had agreed union monopoly of Government con- the choice, the nomination quickly instead to achieve his aim by issuing strúction projects," said Bruce Jos- ran into a storm of political problems a Presidential memorandum of un- ten, senior vice president for the as Senate Republicans investigated derstanding. Republicans had ob- United States Chamber of Com- whether Ms. Herman had improper- jected not only to the Government's merce. ly mixed her White House job with The chamber was one of the lead- encouraging unionized labor but also politics. She was able to convince to the notion of Mr. Clinton governing ers in the lobbying effort against the Republicans on the Labor Commit- proposed executive order. by executive orders. Such orders re- tee that she had not crossed the line. On the other side, the A.F.L.-C.I.O. main in effect after the President But no sooner had she put those leveled its political broadside at the who issued them leaves office. Mem- Republicans. questions and problems to rest than orandums do not. "By dragging their feet with one her nomination became a political In a brief statement that did not partisan excuse after another, the pawn in the fight over the Federal mention the labor agreement, Presi- dent Clinton thanked the Senate "for Republican Senate leadership has contract guidelines. kept the Labor Department without A senior aide to one of the Republi- its strong show of support" of Ms. a new leader for four months," John can leaders said that negotiations Herman's nomination. J. Sweeney, the president of the huge between Mr. Nickles' office and the "There was never any question labor federation, said in a statement. White House on a deal began nearly that she was highly qualified to be "The delays in this process have Secretary of Labor," he said. two weeks ago, shortly after Mr. been totally outrageous." Mr. Lott and Senator Don Nickles Nickles put a hold on the nomination. Today's vote all but completes Mr. of Oklahoma, who had held up the After a series of meetings involv- Clinton's second-term Cabinet, leav- vote on the nomination, were among ing senior staff members and lasting ing only the job of Director of Central 42 Republicans who voted with 43 about five hours all together, the two Democrats in favor of Mrs. Her- sides finally reached agreement on man's confirmation. The 13 votes After the deal is Tuesday night. against her all came from Republi- The deal was sealed this afternoon cans. made, each side is when the Administration delivered a The deal that broke the legislative letter to Mr. Nickles signed by Er- logjam provided a political face-sav- ing for all the players involved, but quick to claim an skine B. Bowles, the White House chief of staff, promising to drop the each side was quick to claim outright victory. outright victory. executive order and to issue a memo- randum instead. "I didn't have a problem with Alexis Herman being Secretary of Labor as much as I had a real prob- -lem with what I perceived to be legislation by executive orders," said Mr. Nickles, the majority whip The New York Times and second in rank to Mr. Lott. Mr. Nickles said that the Adminis- tration's proposed memorandum THURSDAY, MAY 1, 1997 was not legally binding. But White House aides and allies in the Senate argued that the memorandum would have the same effect as the proposed executive order.