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472802499
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Memos to JHS (Sununu) - 5/91 to 8/91
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472802499
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document
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Memos to JHS (Sununu) - 5/91 to 8/91
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11321-005
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Records of the White House Office of the Chief of Staff to the President (George H. W. Bush Administration)
Ed Rogers' Correspondence Files
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1991-08-31
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1991
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1991-05-01
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1991
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Originally Processed With FOIA(s):
FOIA Number:
2025-0647-S; 2011-2575-F
2025-0647-S
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection:
George H.W. Bush Presidential Records
Collection/Office of Origin: Chief of Staff, White House Office of
Series:
Rogers, Ed, Files,
Subseries:
Correspondence Files
OA/ID Number:
11321
Folder ID Number:
11321-005
Folder Title:
Memos to JHS (Sununu) - 5/91 to 8/91
Stack:
Row:
Section:
Shelf:
Position:
G
15
23
1
OA 11321
Ed
'S
Carrespontence
FOR FILE: Ed Rogers' memoranda to Governor
Sununu
dates as noted
THE WHITE HOUSE
WASHINGTON
DATE: July 26, 1991
TO:
GOVERNOR SUNUNU
FROM:
ED ROGERS
Per yesterday's conversation, here is more
information on the Sundquist nominee.
FYI.
DON SUNDQUIST
DISTRICT OFFICES
7TH DISTRICT TENNESSEE
117 SOUTH 20 STREET
CLARKSVILLE, TN 37040
615-552-4408
COMMITTEE
WAYS AND MEANS
Congress of the United States
5909 SHELBY OAKS DRIVE
SUITE 213
MEMPHIS TN 38134
WASHINGTON OFFICE
901-382-5811
230 CANNON HOUSE OFFICE BUILDING
WASHINGTON DC 20515
house of Representatives
202-225-2811
Mashington, DC 20515
July 25, 1991
The Hon. George Bush
President of the United States
The White House
Washington, DC 20500
Dear Mr. President:
As I mentioned briefly last evening at the gymnasium dinner,
I am experiencing a twofold problem relative to the selection of a
new judge for U.S. Sixth Circuit Court of Appeals.
Of paramount concern is that Tennessee is in danger of having
its representation on the circuit reduced from three to two, this
at a time when Tennessee is the only growth state in the circuit
and when the number of appeals originating in Tennessee continues
to show steady growth. There is no precedent for reducing a
state's representation on the circuit, let alone in a year when
the circuit will gain an additional judgeship.
Consequently, I find myself in a politically embarrassing
situation back home. Not only is Tennessee likely to lose a
judgeship, but that judgeship will be lost in the congressional
district represented by the chairman of the President's
Congressional Steering Committee. This is not going unnoticed
back home.
My second problem has to do with the judicial vacancy itself.
You have stated often that it is your wish to nominate highly-
qualified women to the federal bench. Knowing this, I recommended
late last year that the 6th Circuit vacancy be offered to U.S.
District Judge Julia Gibbons of Memphis.
Judge Gibbons appears to fit perfectly the criteria you have
set for judicial appointments; she is young (40), superbly
educated and credentialed, a Republican, a conservative with a
strong record on the bench, and enjoys broad-based support in
Tennessee. Judge Gibbons served as an aide to former Governor
Lamar Alexander and was named by him to the state bench. In 1983,
she was named to the U.S. District Court by President Reagan.
-more-
The Hon. Goerge Bush
page two
Initially, I found it curious that my recommendation of Judge
Gibbons generated so little interest at the Justice Department.
Now, with the passage of eight months and the increased public
speculation about this appointment, I find myself reaching the
uncomfortable conclusion that Judge Gibbons is being purposefully
blocked. Most disturbing, I seem to be unable to find out why
that should be the case.
I have never come to you directly for assistance, and I do so
in this instance only because the situation is of great importance
to me and to my state and because my efforts to resolve this
through channels have won me little but confusion and frustration.
Mr. President, the loss of a major federal judgeship in
Tennessee - in my district - will certainly be viewed as a major
political setback for me. Further, the rejection of a young,
conservative female jurist who enjoys wide-ranging support in the
state and who would appear to be exactly the sort of nominee you
have sought for these positions cannot but harm the
administration's standing in Tennessee.
I respectfully seek your assistance in retaining Tennessee's
traditional third seat on the 6th Circuit Court of Appeals, and I
ask your fair consideration of U.S. District Judge Julia Gibbons
for nomination to that seat.
With thanks and kindest regards, I am
Sincerely,
Don Sundquist, M.C.
DKS:rmp
enclosures
THE TENNESSEAN
NASHVILLE 3/18/91
MON MAR 18 91 T
Gibbons for 6th Circuit
Isean Pal Endorsement
1
HE appointment of Judge Julia Glb-
the 6th Circuit 8A/12 because it would give those
bons to the 6th U.S. Circuit Court of
states a first-rate judge who has already
Appeals would be a credit to this region
proved in 10 years OD the bench that she
and to the Bush administration.
has the intellect, stamina and tempera-
Since 1983, Gibbons has been a federal
ment to serve with distinction.
district judge in Memphis. Her appoint-
ment by former President Reagan made
And the appointment would be a big
her Tennessee's first woman federal
credit to Bush. Frankly, the Bush adminis-
judge.
tration's record of appointing women to
Before that, she served as a Circuit
judgeships is quite bad. Of the 48 district
Court judge in Memphis, a position to
judicial appointments made by the admin-
which she was appointed by former Gov.
istration in its first two years, just five
Lamar Alexander. That 1981 appointment
were women. or Bush's 18 appeals court
made her the first woman trial judge of a
appointments, only two were women.
court of record in Tennessee.
Filling federal judgeships understand-
The Bush administration now has
ably has not been the White House's top
scores of judgeships to fill. Just in the 6th
priority during the months of the Persian
Circuit. which handles federal appeals
Gulf conflict.
from Tennessee, Kentucky, Ohio and
But the war is over, and other matters,
Michigan, there are three vacancies on
including judgeships, are urgent. In the
the 16-judge court.
case of one vacancy on the 6th Circuit,
One of those judgeships should go to
Gibbons' experience and intellect should
Glbbons. Her appointment would benefit
make toe appointment simple.
EDITORIALS
Best for court/
The Commercial Appeal
1/8/91
Gibbons should be Bush's choice
U.S. Dist. Judge Julia S. Glb-
moved Judge Hull from another
bons should receive President
Bush's appointment to fill an up-
Butcher case because of a poten-
tial conflict of interest.
coming vacancy on the Sixth U.S.
Judge Hull also received na-
Circuit Court of Appeals.
tional publicity in 1985 in the Haw-
The fact that Judge. Gibbons
kins County textbook case. He
has done an outstanding job in her
eight years on the federal bench is
ruled that students had a right to
"opt out" of classes that used books
only one reason, and perhaps not
that parents said violated their re-
even the most important.
These are the other reasons:
ligious beliefs. The appeals court
I The vacancy will occur
overturned him. and the Supreme
when Judge Harry Wellford of
Court refused to hear the case.
Memphis takes senior status, effec-
By contrast, the career of
tive Jan. 21, although it may take
Judge Gibbons has been one of un-
many months to fill the vacancy.
marred distinction, from an out-
He will continue to hear cases part-
standing record at Vanderbilt Uni-
time. Appeals court replacements
versity and the University of Vir-
traditionally come from the same
ginia School of Law through a long
state as the judge who is retiring
list of professional firsts.
or moving to part-time status.
She was, as she mentions in a
Nominees also are chosen from
Vanderbilt Alumnus article, "the
members of the president's party.
first female attorney employed by
Judge Gibbons, although only 40,
the firm with which I practiced,
is the senior Republican in terms
the first female legal counsel for a
of service among Tennessee dis-
governor of our state (Lamar Alex-
trict judges.
ander), the first female trial judge
I Successors on an appeals
of a court of record in Tennessee,
Page
5.1
and the first female district fudge
court are recommended to the
in Tennessee."
president by a U.S. senator of his
In one of her most publicised
party from the judge's state, or, if
cases, Judge Gibbons ruled that
both senators are of the opposite
unconstitutional conditions exist-
party, by the U.S. representatives
ed at the Shelby County Jail, but
of the same party. Judge Gibbons,
she avoided adding to the confu-
who has been recommended by
U.S. Rep. Don Sundquist (R-Tenn.),
sion and tensions. With an orderly
approach that reassured everyone.
is by far the best choice for politi-
involved in the case, she directed
cal purposes. Because of her age,
jail officials and attorneys for in-
she probably would have a long ca-
mates to develop a plan of reforms.
reer on the appeals court no mat-
ter how political fortunes changed
She approved the plan last year.
in the White House. And, when
Also weighing in the favor of
next a Republican occupied it, she
Judge Gibbons is the fact that, in
might be a front-runner for ap-
1989, there were only 18 women
pointment to the U.S. Supreme
among the nation's 133 appellate
Court.
court judges. The judicial branch
The other leading candidate
of government needs to have bet-
is U.S. Dist. Judge Thomas G. Hull
ter representation than that for
of Greeneville in East Tennessee,
more than half the population.
who is supported by U.S. Rep.
IF NOMINATED and con-
James Quillen (R-Tenn.). Judge
Hull has two disadvantages com-
firmed to the Court of Appeals,
Judge Gibbons would be one of the
pared with Judge Gibbons: At his
age, 64, he would not have as much
youngest judges on the appeals
bench. In her case, that's not a
service on the appeals court as a
handicap.
younger candidate and, therefore,
First, her record is superb. In
might give Democrats a quicker
her eight years as a district judge,
opportunity to make an appoint-
she has earned the respect that
ment. The biggest disadvantage,
supports her candidacy. Her tem-
however, is that his federal tenure
perament is flawless; her scholar-
has been marked by several con-
troversies.
ship, thorough; her judgment, ma-
ture and reliable.
In 1984, Judge Hull stepped
Because of that record and ex-
down from a case involving
perience, her age becomes an ad.
charges against bankers Jake and
C.H. Butcher after The News-Senti-
vantage. She would have a long CR-
nel in Knoxville reported that the
rear on the appeals bench and a
judge had used a Butcher loan to
chance eventually to become a
leading candidate for the Supreme
buy stock in a Butcher bank. More
Court. That's a major cons
recently. the appeals court re-
tion for President Bush.
THE WHITE HOUSE
WASHINGTON
July 26, 1991
MEMORANDUM FOR GOVERNOR SUNUNU
ANDY CARD
RON KAUFMAN
FROM:
ED ROGERS
SUBJECT:
LOUISIANA VISIT?
Roemer's people are looking for guidance
on the attached.
What can we tell them?
Please advise.
Thanks.
JUL-24-91 WED 10:57 B.R. GOVERNOR'S OFFICE
P.02
State of Tonisiana
EXECUTIVE DEPARTMENT
Paton Rouge
POST OFFICE Box 94004
BUDDY ROEMER
70804-9004
(504) 342.7015
GOVERNOR
July 24, 1991
Honorable George Bush
President
The White House
1600 Pennsylvania Avenue
Washington, D.C. 20500
Dear President Bush:
I know that your travels in the next few weeks will take
you away from Washington, and I would like to ask your staff's
consideration of my earlier request for you to appear in
Louisiana on my behalf on September 28, 1991. I would greatly
appreciate your staff contacting P.J. Mills, my Chief of Staff,
on this matter so that we can begin advanced planning in
coordination with your people at an early date.
We are anxiously awaiting your visit to Louisiana, and look
forward to seeing you. Please give my best regards to
Mrs. Bush.
Sincerely,
Buddy Roemer
Governor
BR:mac
THE WHITE HOUSE
WASHINGTON
DATE: July 26, 1991
TO:
GOVERNOR SUNUNU
FROM:
ED ROGERS
Per our discussion yesterday, attached
please find the material on Dick Rosenbaum's
nomination to the 2nd circuit court of appeals.
FYI.
JUL-25-91 THU 17:26
NHDD ROCH
FAX NO. 7162631600
P.02
GERALD R. FORD
July 15, 1991
Dear George:
good I write a very strong letter of endorsement on behalf of a very
friend - Dick Rosenbaum - who is being considered for
nomination to the 2nd Circuit Court of Appeals.
I've know Dick since the 1960s. At the request of Governor
Nelson Rockefeller, he left a New York State Supreme Court
judgeship to become Republican State Chairman. For about 40
years he has served the GOP with integrity and fine
judgeship Dick At present, Rosenbaum nomination. Dick has is an a excellent fine Republican legal background National Committeeman. for leadership. a federal
had New York State, so he has had & judicial background. He has
in Re has Berved 68 S Supreme Court Judge
the law. broad and successful experience in the private practice of
Dick Rosenbaum is $ person of the highest character and is
we support.
dedicated to those fundamental principles of government which
judge on the 2nd Circuit Court of Appeals.
I reiterate my endorsement for Dick Rosenbaum's nomination as $
Warmest, best wishes,
The Honorable George Bush
The President of the United States
The White House
Washington, D.C. 20500
KOSENBAUM, UKK
JUL-25-91 THU 17:27
NHDD ROCH
FAX NO. 7162631600
P.03
ALAN K. SIMPSON
WYOMING
United States Senate
Assistant Republican Leader
WASHINGTON. D.C. 20510
July 19, 1991
Honorable C. Boyden Gray
Counsel to the President
The White House
Washington, D.C. 20500
Dear Boyden:
I am advised that a decision has not yet been
made on the Circuit Court of Appeals, Second Circuit,
and I just wanted to "refresh" my support of Dick
Rosenbaum for that appointment.
Attached is the text of my March 20, 1991 letter
on Dick's behalf. Please know that I continue to
choice. feel just as strongly that he would be an excellent
I would appreciate being advised on the status
made. of this nomination and of the decision, once it is
Thank you again for giving Dick every proper
much appreciate that.
consideration in the selection process. I do very
With best regards,
Most sincerely a
Alan K. Simpson
United States Senator
AKS/dhg
Enclosure
NOT PRINTED OR PROPARED AT GOVERNMENT OR TAXPAYER EXPENSE
JUL-25-91 THU 17:27
NHDD ROCH
FAX NO. 7162631600
P.04
Mnited States Senate
WASHINGTON, D.C. 20810
July 19, 1991
The Honorable George Bush
President of the United States
The White House
1600 Pennsylvania Avenue
Washington, D.C. 20500
Dear Mr. President:
We heartily endorse Richard M. Rosenbaum for
appointment to fill a vacancy on the U.S. Court of
Appeals, Second Circuit.
Dick is a graduate of the Cornell University School
of Law and is a partner in the venerable law firm of
Nixon, Hargrave, Devans & Doyle. He is a former member
of the New York Supreme Court and he enjoys a reputation
as a first class lawyer.
His philosophy of the law is in complete agreement
with the philosophy of your administration in that he
believes strongly in judicial restraint, strict
construction of the Constitution, and he is totally
opposed to legislating from the bench.
In addition to practicing law over many years, he
has devoted his life to working for the good of the
Republican Party.
As a matter of fact, some years ago he left the
bench with twelve years to go in his term in order to
strengthen the Party in New York State as its Chairman at
the request of then Governor, Nelson A. Rockefeller.
The only objection to Dick's candidacy has been his
age (he was 60 in April) but he is in robust physical
condition and is known to be an extremely hard worker.
-1-
JUL-25-91 THU 17:28
NHDD ROCH
FAX NO. 7162631600
P.05
-2-
Mr. President, we urge you to nominate Dick
Rosenbaum to the U.S Court of Appeals, Second Circuit
your Administration for many years to come.
we are sure that he will be a credit to the Court and to as
concern.
Thank you very much for your consideration and
The
Sincerely,
Robert Dole
Republican Leader
Alan K. Simpson
Assistant Republican Leader
aifarm D'amits
Alfonse D'Amato
United States Senator
JUL-25-91 THU 17:28
NHDD ROCH
FAX NO. 7162631600
P.06
STEVE SYMMS
IDAHO
United States Senate
WASHINGTON, DC 20510
June 28, 1991
Mr. Richard M. Rosenbaum
Nixon Hargrave Devans & Doyle
Clinton Square
Post Office Box 1051
Rochester, New York 14603
Dear Dick:
A short note to let you know that I have joined my
colleagues in supporting your interests in serving on
the Circuit Court of Appeals. Letters have gone to the
White House.
Thank you for calling on me to support your efforts.
It is my pleasure.
You're a great American and I wish you well.
Sincerely
STEVE Share SYMMS
United States Senator
It
faxed without signature to avoid delay
THE WHITE HOUSE
WASHINGTON
Date: July 9, 1991
FOR:
GOVERNOR SUNUNU
FROM: ED ROGERS
Action
Your Comment
Let's Talk
XXX FYI
JUL 08 '91 09:30AM B M S&K
P.2
07/01/91
12:34
NRA/ILA WASH,DC 202/861-0306
002
NATIONAL RIFLE ASSOCIATION OF AMERICA
INSTITUTE FOR LEGISLATIVE ACTION
1600 RHODE ISLAND AVENUE, N.W.
WASHINGTON, D.C. 20036
OFFICE OF THE
MEMORANDUM
EXECUTIVE DIRECTOR
(202) 828-8320
To:
Charlie Black
From:
Jim Baker
Re:
Proposed BATF Regulation
Date:
July 1, 1991
The BATF is on the verge of attempting to promulgate a regulation that would
stretch a newly enacted criminal provision, 18 U.S.C. $922(r), out of all proportion.
Passed as part of the 1990 crime package, that provision amended the Gun Control Act
of 1968 to prohibit the assembly, from imported parts, of any semi-automatic rifle or
shotgun which is prohibited from importation as not being particularly suitable for
sporting purposes. I would appreciate your assistance in preventing BATF from
attempting to expand the clear language of this statute.
The "from imported parts" language was not in the bill as originally proposed.
Although the bill's language would have encompassed a ban on domestic assembly of
certain firearms, Report 101-681, House Judiciary Committee, 101st Congress, 2nd
Session, at 106-107 (1990) explained: "The purpose of this provision is to prevent the
circumvention of the importation restrictions by persons who would simply import the
firearms in a disassembled form and then reassemble them in the United States." To
clarify that this intention was really part of the statute, on the House floor
Congresswoman Unsoeld introduced the amendment adding the words "from imported
parts." She stated that "my amendment would clarify that the ban refers to domestic
assembly of non-importable firearms only." Congressional Record at H8864 (October 4,
1990). All of the ensuing debate discloses the understanding that to be in violation, one
would have to import all of the parts of a firearm before the conduct would be
encompassed in the statutory provision. Both opponents and supporters argued that the
provision would supplement, but not expand, existing law.
JUL 08 '91 09:30AM B M S&K
P.3
07/01/91
12:35
NRA/ILA WASH,DC 202/861-0306
003
2
Currently, BATF is sending letters to domestic manufacturers alleging that the
assembly of firearms from domestic parts, combined with any imported parts, is a
violation. Yet the clear language of the statute does not prohibit the assembly of a
firearm from domestic and imported parts - it only includes one assembled solely from
imported parts. Indeed, BATF seems to be claiming that use of a domestically
produced receiver - the major part of any firearm *** is a violation if imported parts are
also used.
BATF spokesmen have stated that they will be promulgating a regulation on
922(r) in the very near future. BATF should not be allowed to promulgate such a
regulation. First, it has no authority to expand the language of a criminal statute which
Congress has passed. Second, the statute speaks for itself, and should not be amended
to a more stringent form by the agency through regulation. Such a regulation would be
a political and administrative nightmare. The Congress, not a bureaucratic agency,
should decide policy for Americans concerning firearm ownership.
I would appreciate it very much if you would take action to preclude the
promulgation of any regulation. I would suggest that you contact John Robson, who is
the boss of Mr. Nunez, Assistant Secretary of the Treasury for Enforcement, and direct
that no regulation be issued. The Director of BATF reports to Mr. Nunez.
Your assistance would be greatly appreciated. Please contact me if you need
further information.
THE WHITE HOUSE
WASHINGTON
Date: July 9, 1991
FOR:
GOVERNOR SUNUNU
FROM: ED ROGERS
Action
Your Comment
Let's Talk
X
XX
FYI
FAX TO ED ROGERS
AL SIMPSON
Whip Notice
WYOMING
United States Senate
OFFICE OF
THE ASSISTANT REPUBLICAN LEADER
WASHINGTON, DC 20510-7022
July 2, 1991
Dear Colleague:
The Senate schedule for the week we return is as follows:
Monday, July 8, 1991:
The Senate will convene at 3:30 p.m. There will be a period for
morning business, not to extend beyond 4 p.m. At 4 p.m., the Senate
will resume consideration of S.1241, the crime bill. When the Senate
resumes consideration of S. 1241, Senator Rudman will be recognized
to offer an amendment under a UC agreement which provides one hour,
Rudman amendment, Senator Biden will move to table. The Rudman
equally divided, for debate. At the conclusion of debate on the
amendment will then be temporarily set aside, and Senator Bingaman
will offer an amendment on literacy in state prisons. The vote on
the motion to table the Rudman amendment will occur at 7 p.m.
Tuesday, July 9, 1991:
The convening hour has not been determined. As usual, the
Senate will recess for party policy lunches from 12:30 until 2:15.
Balance of the Week
The Senate is expected to continue consideration of S.1241 until
final disposition. The Majority Leader has announced that the
following constitutes a non-exclusive list, in alphabetical order,
not according to priority, of what the Senate may consider in July:
available appropriations bills, the cable bill, China MFN
authorization bill, the education improvement bill (S.2), the family
legislation, civil rights legislation, the C.A.F.E. bill, the DOD
and medical leave bill, the Federal facilities bill, the foreign aid
authorization bill, the motor voter bill, the National Energy
Strategy legislation, and the Title 10/"gag rule" legislation. He
has also announced that for the remainder of this session, there will
be roll call votes five days a week. Votes will occur on Mondays
after 5 p.m., and on Fridays before 3 p.m. On Tuesdays, Wednesdays,
and Thursdays, roll call votes may occur throughout the day and into
the evenings, if necessary.
Friday, July 12, 1991:
The Senate will not be in session to accomodate the Democratic
Party retreat. If you have questions, please call 4-2708.
a
Al Simpson
Assistant Republican Leader
THE WHITE HOUSE
WASHINGTON
Date: July 8, 1991
FOR:
GOVERNOR SUNUNU
FROM: ED ROGERS
Action
Your Comment
Let's Talk
XXX FYI
Republicans Abroad
Clayton Yeutter
Honorary Chairman
John G. McCarthy, Jr.
June 27, 1991
Chairman
Barbara Hayward
President George Bush
Vice Chairman
The White House
William Ali Mills
Executive Director
Washington, D.C. 20500
U.S.A.
ADVISORY COMMITTEE
Vice President Dan Quayle
The Hon. Jeanie Austin
Clement M. Brown, Jr.
Dear President Bush,
Senator Robert Dole
Jennifer B. Dunn
Frank J. Fahrenkopf, Jr.
Keep Sununu!
William J. Harris
Perry O. Hooper
Senator Connie Mack
We can tell from Europe that the liberal U.S.
Senator John McCain
Richard Richards
media (and a few conservative columnists like
Congressman Guy Vander Jagt
Ronald H. Walker
Safire) are trying to destroy John Sununu's
Governor Pete Wilson
political stature by trumpeting his travel
EXECUTIVE COMMITTEE
expenses.
The Hon. Shelby Cullom Davis
Finance Chairman
It is amazing how the press ignores the enormous
Michael M. Uhimann
cost of Congressional junkets, such as the recent
Legal Counsel
trip by one hundred Congressmen and their wives to
James R. Fees
the Paris Air Show.
Immediate Past Chairman
Randall Tallerico
On behalf of the worldwide membership of
Communications Director
Republicans Abroad, I would urge you to stand firm
Joan Hills
in your support for the Chief of Staff. He is a
Treasurer
remarkable man: Brilliant, loyal and a staunch
Kathryn J. Angelis
Republican.
Secretary
Betty Dahistrom
The Democrats and the liberal media are trying to
Howland Russell
Voter Registration
get you by hitting John Sununu. Our faith has not
REGIONAL CHAIRMEN
been shaken. Please stand firm!
John Wood
Europe
I had a good visit with Bucky in St. Louis on June
12. He has agreed to SO some campaigning with
Jerry Loupee
Asia/Pacific
Republicans Abroad in Europe next year.
Ronald P.E. Leeds
Middle East/Africa
Best regards.
Dulcie Ann Sherlock
Western Hemisphere
Sincerely yours,
MEMBERS-AT-LARGE
Linda Pell
Jhn
Germany
Ira D. Kaye
John G. McCarthy, Jr.
Hong Kong
Chairman
Ruth Eakin
Montserrat
CC: Barbara Hayward
John Bauer
James Fees
Bahrain
Reply to: P.O. Box 708, 1211 Geneva 3, Switzerland
Republicans Abroad
310 First Street S.E. Washington, D.C. 20003
Tel: (202) 662-1390
FAX: (202) 737-2687
THE WHITE HOUSE
WASHINGTON
Date: July 2, 1991
FOR:
GOVERNOR SUNUNU
FROM: ED ROGERS
Action
Your Comment
Let's Talk
FYI
JUL 2 '91 9:04
PAGE. 001
FROM
GM
JAMES D. JOHNSTON
Post-it™ brand fax transmittal memo 7671
# of pages
VICE PRESIDENT
INDUSTRY-GOVERNMENT RELATIONS
Co. To Ed RogEns
Jimstomston
Epain
EEUERAL Motous
Mr. Ed Rogers
Dept.
Phone
Executive Assistant to
Fax #
207/775-5090
the Chief of Staff
202/775-5035 Fax #
The White House
National Academy of Science's Study of Fuel Economy
As I mentioned, we believe the NAS study of the technological feasibility
and economic practicability of further motor vehicle fuel economy improvements
is of increasing importance. Prior to DOT's contracting the NAS study, our
trade association, the Motor Vehicle Manufacturers Association, commission two
studies, one with SRI and other with Charles River Associates. This was done
because of the lack of serious studies of the subject.
These studies are now complete, and we are planning to make them available
to the NAS study committee for background. (Since they are relevant to the NAS
study, we think it is appropriate to do so.)
The SRI report concludes that the passenger car fleet could achieve
increases of 0.7 mpg and 1.3 mpg in 1995 and 2001 (over a 1990
baseline), based on a 4-year payback, and 0.7 mpg and 2.6 mpg in 1995
and 2001, based on a 10-year payback. (These projections are based
on data SRI received from Ford, GM, Honda and Chrysler.) For light
duty trucks, the fleet could achieve increases of 0.7 mpg and 1.1
mpg, based on a 4-year payback, and 0.7 mpg and 1.6 mpg, based on a
10-year payback.
The analysis is based on a calculation of cost-effectiveness which
compared economic benefits (fuel cost savings exceeding the cost of a
technology) to the retail cost of implementing various technologies.
The Charles River study concludes that, as an energy conservation
measure, higher CAFE is probably quite costly and is definitely very
risky. A 40 percent increase in CAFE standards could save 300,000
barrels per day of oil by 2001, at a most likely cost of $32 per
barrel saved, above and beyond the price of the oil per barrel.
It also finds that, if global warming is the concern driving energy
conservation initiatives, then by far the most cost-effective policy
measure is imposing a carbon fee. A modest carbon fee equivalent
to 5 cents per gallon of gasoline - could achieve the same CO2
reductions as the Bryan bill.
In the interest of keeping the Governor well informed on this issue, we
wanted to advise him of these plans. Of course, we would welcome any comments
or suggestions.
Jim Johnston
JDJ:cba
7/2/91
SUITE 401
1660 L STREET. NW
(202) 775-5090
WASHINGTON. DC. 20036
ROOM 13-137
GENERAL MOTORS BLDG
(313) 556-4671
DETROIT, MICHIGAN 48202
THE WHITE HOUSE
WASHINGTON
Date:
July 2, 1991
FOR:
GOVERNOR SUNUNU
FROM:
ED ROGERS
Action
Your Comment
Let's Talk
XX
FYI
THE WHITE HOUSE
WASHINGTON
DATE: July 2, 1991
TO:
PHIL BRADY
FROM:
ED ROGERS
Just wanted to be sure the President saw
the attached.
Thanks.
SENT BY: MAIN OFFICE
; 7- 1-91 ; 16:05 ; S.I. BORO PRESIDENT-
2024562397;# 2
CITY OF NEW YORK
PRESIDENT
OF THE
BOROUGH OF STATEN ISLAND
Guy V. MOLINARI
BOROUGH HALL, STATEN ISLAND, N.Y. 10301
PRESIDENT
July 1, 1991
The Honorable George Bush
President of the United States
The White House
1600 Pennsylvania Avenue
Washington, D.C. 20500
Dear President Bush:
I am deeply disturbed by the extensive media bashing
of John Sununu over the past several weeks. It is obvious
that they smell blood and believe by intensifying a public
attack upon his activities, they will force his removal.
Frankly, I know how important John has been to your
administration, and I am amazed by his ability to constantly
stay on top of so many complex issues simultaneously.
It would be extremely difficult to replace him with someone
of equally high caliber.
While it appears John made some errors in judgment,
I am certain that steps have already been taken to insure
that these problems will not be repeated. It has become
more and more obvious that there are some high level persons
in the administration who would like to see him replaced.
In my view, that would be a serious mistake.
I strongly urge you to ride this media storm out and
retain John in the present role he serves so well.
GVM:tms
Az Guy V. Molinari
Sincerel yours,
THE WHITE HOUSE
WASHINGTON
Date: July 1, 1991
GOVERNOR SUNUNU
FOR:
FROM:
ED ROGERS
Action
Your Comment
Let's Talk
XXX
FYI
JUN 28 '91 14:46
10 WHITE-HOUS
PAGE. 002
CONGRESSIONAL
CONTACT
LEGISLATIVE ALERT! 0
JUNE 18, 1991
NAHB CALL TO ACTION
National
CONTACT YOUR SENATORS BEFORE
Association
SENATE CONFIRMATION HEARINGS
of Home
Builders
ON ROBERT CLARKE'S REAPPOINTMENT
AS COMPTROLLER OF THE CURRENCY
Government
Affairs
Division
The reappointment of Robert L. Clarke as Comptroller
*
of the Currency is going to be considered by the Senate
*
Committee on Banking, Housing, and Urban Affairs this
*
*
summer. The Committee must act on Mr. Clarke's
15th & M Streets, N.W.
*
reappointment, and forward its recommendation to the
*
full Senate for a vote. Mr. Clarke cannot serve
Washington, D.C.
*
another five year term without Senate approval.
*
Mr. Clarke's directive to national banks has
*
20005
*
contributed to the severe credit crunch. This should
*
(202) 822-0470
*
be raised by Senators during the confirmation hearings.
#
(800) 368-5242
ext.470
WHAT YOU SHOULD DO:
Write your Senators to let him or her know what your personal
experience has been in trying to deal with the ongoing credit
crunch. If you have found lenders increasingly unwilling to make
even prudently underwritten loans -- especially due to
overzealous regulation -- let your Senators know.
If one or both of your Senators serve on the Senate Banking
Committee, ask him or her to raise your situation with
Comptroller of the Currency Clarke during the Committee's
hearings on Mr. Clarke's reappointment. Request that your
Senator(s) question Mr. Clarke on whether his Office has taken
any steps in recent weeks to alleviate the credit crunch, and if
not, what actions he plans to take in the future. If Mr. Clarke is
not willing to do this, then -- as an individual, since NAHB has no
direct policy on Mr. Clarke's confirmation - you should ask your
Senator to consider opposing his confirmation.
Legislative Alert
June 18, 1991
Page Two
If your Senators do not serve on the Senate Banking Committee, ask
that they contact their colleagues on the Committee and share your
concerns with them prior to any Clarke confirmation hearings. Also ask
them to speak up on the Senate Floor on the severity of the credit
crunch.
BACKGROUND:
In February 1990, Comptroller of the Currency Robert L. Clarke wrote the
chief executives and directors of all national banks warning them of what his
Office perceived to be the perils of real estate lending (OCC Advisory attached).
Mr. Clarke's advisory directed banks under the OCC's regulatory authority "to
review carefully real estate lending activities and to initiate corrective action
promptly." His notice went on to state: "The OCC has been and will continue
to be aggressive in requiring the correction of such weaknesses. Examiners have
been instructed to recommend formal enforcement actions as appropriate."
Not surprisingly, Mr. Clarke's "OCC Advisory" set off alarms throughout the
nation's banking industry, leading lenders to virtually cease making any types of
real estate loans. Bank examiners have failed to distinguish between housing and
other types of lending, and this situation has inevitably led to the severe liquidity
crisis we are experiencing today in housing and in numerous other businesses.
After much prodding by NAHB and Congress, the four federal bank regulators
(the Office of the Comptroller of the Currency, the Federal Reserve, the Federal
Deposit Insurance Corporation, and the Office of Thrift Supervision) announced
on March 1, 1991, that they intended to launch a joint effort aimed at
encouraging lenders to once again start using common sense in making loans --
including real estate loans -- rather than shutting off lending for fear of incurring
the regulators' wrath.
However, it appears that the word regarding the regulators' March 1st
agreement is just not getting down to the examiners and banks in the field.
Further, of all the banking regulators, the Comptroller appears to be the least
enthusiastic in implementing these clarifications.
WHAT YOU SHOULD SAY:
Tell your Senators just what the credit crunch has done to your
business. Let them know how the drying up of credit throughout the
nation has taken its toll on your ability to make a living, as well as
depriving Americans of the ability to own a home. In addition to citing
the direct impact the crunch has had on you, be sure to point out how
many others, who would otherwise be working on your jobs, are now
out of work as a result of your inability to obtain credit.
PAGE.005
SNOH-31IHM 01
20:00 16. 28 NOS
JUN 28 '91 14:47
TO WHITE-HOUS
PAGE. 004
Legislative Alert
June 18, 1991
Page Three
Ask that this message be conveyed directly to Comptroller of the
Currency Robert L. Clarke during his confirmation hearings. Further, ask
that he be questioned as to how he intends to carry out the joint
regulators' March 1st commitment to encourage more housing and real
estate lending. If he isn't willing to do this, then as an individual - --
you should ask your Senator to vote against Clarke's confirmation.
The Senate Banking Committee has not vet set a date for Mr. Clarke's
confirmation hearings because of investigations which are under way on
Mr. Clarke's financial activities. However, they are expected to take place
sometime in the summer. Because they may be scheduled unexpectedly, be sure
to get your message to your Senators as soon as possible. The Members of the
Senate Banking Committee are as follows:
DEMOCRATS
REPUBLICANS
Donald Riegle (MI), Chairman
Jake Garn (UT)
Alan Cranston (CA)
Alfonse D'Amato (NY)
Paul Sarbanes (MD)
Phil Gramm (TX)
Christopher Dodd (CT)
Christopher Bond (MO)
Alan Dixon (IL)
Connie Mack (FL)
Jim Sasser (TN)
William Roth (DE)
Terry Sanford (NC)
Pete Domenici (NM)
Richard Shelby (AL)
Nancy Kassebaum (KS)
Bob Graham (FL)
John H. Chafee (RI)
Timothy Wirth (CO)
John Kerry (MA)
Richard Bryan (NV)
JUN 28 '91 14:46
TO WHITE-HOUS
PAGE 003
AL 90-2
OCC ADVISORY
Comptroller of the Currency
Administrator of National Banks
TO: Chief Executive Officers and Directors of All National Banks
SUBJECT: Real Estate Project and Development Lending by National Banks
Over the last year, OCC examination activity has revealed a significant
number of fundamental deficiencies and negative trends in national bank
real estate lending which require the immediate attention of bank
managements and Boards of Directors. Our observations fall into three
key areas:
Underwriting Standards - Basic lending principles have been ignored or
compromised to increase volume and achieve higher levels of interest and
fee income. The lack of borrower equity in real estate projects is a
critical part of this weakness.
Appraisals, Structuring and Documentation - Appraisal policies are
deficient. Too many banks have failed to obtain accurate, independent,
and timely appraisals. The absence of proper documentation has often
been excused by the need to "meet the competition." After origination,
timely reviews of projects and market conditions are not conducted.
Risk Identification - Certain practices have inhibited the ability of
lenders to properly categorize risk. These practices include:
continuing to accrue interest on loans where interest is being paid from
unadvanced loan amounts, despite substantial deterioration in the
condition of the project, the market or the borrower; advancing
increased interest carry without additional financial support or
justification; and operating with incomplete or nonexistent "in
substance" foreclosure policies.
Directors should instruct bank management to review carefully real
estate lending activities and to initiate corrective action promptly.
The OCC has been and will continue to be aggressive in requiring the
correction of such weaknesses. Examiners have been instructed to
recommend formal enforcement actions as appropriate.
The OCC is currently reviewing its specific guidance on real estate
lending (Banking Circulars 208, 225, the Comptroller's Handbook for
National Bank Examiners and other issuances on real estate topics).
Questions about any of these materials should be directed to your
supervisory office.
Nothing in this advisory or in OCC examination policy is intended to
discourage sound real estate (project and development) lending. Our
supervisory activity confirms that the vast majority of national banks
have not deviated from traditional high lending standards.
unuanuye
Robert L. Clarke
Comptroller of the Currency
Date: February 8, 1990
Page 1 of 1
THE WHITE HOUSE
WASHINGTON
Date: July 1, 1991
FOR:
GOVERNOR SUNUNU
FROM: ED ROGERS
Action
Your Comment
Let's Talk
XXX FYI
Another pretty good report out of CA -
per Rock Schnabel.
Governor Wilson/California Republican Party
Feud continues between State Chairman Dignan and the
Governor's people. The search for an Executive Director
goes on (who will be paid by Team California - not the
C.R.P.1) over the objections of Dignan. The Wilson "money
people" see this potential C.E.O. as a way to short circuit
Dignan and his conservative followers. They also want a
Chief Financial Officer, and have a candidate for that job.
However, this candidate has no fundraising experience and
doesn't 500 his role as such, which demonstrates again the
rampant naivete at work here. The scenario calls for Team
California member Michael Huffington agreeing to become
Finance Chairman in exchange for being able to put in a
staff person acceptable to them. Dignan, as you know, has
thus far been unable to persuade anybody to take on the
Finance Chairmanship, so hasn't much choice.
One further ironic note to this wrangling: Team California
folks still don't realize that, according to State Bylaws,
this C.F.O. won't have the ability to sign checks--which is
what they were counting on. As for Huffington, the deal is
set, but he has insisted on phone calls from the White House
and Wilson before formally accepting. There is still some
question whether Huffington will actually be an active
Finance Chair, or merely a figurehead.
Wilson's office is truly grieving the death of campaign
manager and Communications Director Otto Boss. That,
coupled with the departure of Deputy Chief of Staff (and
former Deputy campaign manager) Marty Wilson, leaves a big
hole inside the Governor's office. Marty will actually be
just across the street with Spencer-Roberts, and has been
tapped by Wilson to be in charge of the California
Delegation selection process. George Gorton will pick up
most of the Governor's political chores in the wake of all
this, but is just not as personally close to Pete and Bob
White, despite being a part of the inner circle for twenty
years.
Schnabel Memo
Page 2
To my mind, the President made a smart decision to avoid
overtly political events when he's here this week. It was
no wins if he did the dinner for Seymour, every other
Senator would demand their due, and he would have infuriated
the already embattled State Chairman Dignan. It was a major
brouhaha in the making.
U.S. Senate
Seymour Seat
Senator Seymour's first big dinner with Bob Dole was only
moderately successful. They planned on 1200 people at $250,
and came up with approx. 700 bodies (mostly paid). What I'm
hearing is that both Seymour and Dole spoke for a half hour
each, and that made for a long evening. Today Seymour will
announce the selection of Stu Spencer and Marty Wilson as
his chief consultants, with Rick McBride of Texas as his
day-to-day campaign manager (Thanks go to Sen. Gramm for the
Texan). The L.A. Times did a two day piece on the Senator
which was pretty brutal (tool of the realtors and
developers, lied about being a millionaire, flip flops on
the issues, etc.). Knowing of the investigative reporter, I
feel this is only the beginning.
Also today, Seymour got another opponent in the Primary:
Bill Allen, the black professor at Claremont who is a
darling of the pro-life conservatives. He, like Cong.
Dannemeyer, hasn't got much chance due to lack of funds, but
both of these men will do their best to bloody Seymour
before June and muddy the waters even further.
As to the Democrats, Gray Davis shows better in the polls
against Seymour than Feinstein (he beats John by 22%; she
wins by 108), but a lot of that can be blamed on her
negatives, which got a full airing against Wilson last year.
Davis, of course, hasn't had a real campaign ever. She
still looks like the candidate to beat.
Cranston Seat
Cong. Tom Campbell is getting a lot of flak for being the
only California Republican to support the Demo civil rights
bill. Some are saying he's a bit premature in starting to
pander to the left this early in the game.
Dornan endorsed Herschensohn this week as he pulled out of
the running. Obviously, he remembers last reapportionment,
Schnabel Memo
Page 3
when he left Congress to run for the Senate and had his seat
disappear because of it, forcing him to move to Orange
County and run against a Demo incumbent two years later.
Among Herschensohn's problems is he has a small, second rate
staff and extremely poor fundraising ability, which Stu
Spencer has never really understood. Stu is still pushing
his "Herschensohn helps elect Seymour" strategy as the way
to placate conservatives.
Cong. Dreier has said he'll decide by July whether or not to
enter the fray. Odds are David won't find the "dose of
Rules. courage" necessary, and will opt to keep his seat on House
The Jack Kemp for Senate rumors are starting up again -- I
think because no one really believes that this race will
come down to just Campbell and Herschensohn. Many people
are looking for a middle of the road "great white hope" to
come along and save the GOP from two relatively weak
contenders against any Democrat.
Jerry Brown is way ahead in the polls, with Lt. Gov.
McCarthy next, then Cong. Boxer, then Cong. Levine. But it
comes down to money, and Brown has imposed a limit of $100
per contributor on himself. Levine has millions in the bank
and growing.
THE WHITE HOUSE
WASHINGTON
Date:
July 1, 1991
FOR:
GOVERNOR SUNUNU
FROM:
ED ROGERS
Action
Your Comment
Let's Talk
FYI
06/22/1991 09:13 FROM A & G GRAPHICS INC
TO 12024562380
P.02
Pinellas County
Pat Baker
State Committeewomon
Republican Executive Committee
RESPUBLICAN PARTY
11644 Inving Street Seminole, FL 34642 (813) 528 0157 Fax: (813)527-5027
393-1548
OF FLORIDA
393.6055
June 22, 1991
The President
The White House
Washington, D.C.
Dear Mr President,
It has come to my attention that Mr John Sununu may be in
trouble with your administration. It seems to me that the
liberal press would like nothing better than to destroy a
true Conservative within your organization.
In speaking with several loyal Republicans in Pinellas County
regarding Mr Sununu, each was aghast that there was even a
hint that he might be in for an early "retirement". Many
feel that you stopped the "Mother of all Wars" one man short
because of the influence of the liberal press. Let's not let
the liberal press run the internal affairs of your White
House.
Remember, it will never be all-right for a Conservative
Republican to take a drive, but it will always be all-right
for a Liberal Democrat to take a drive off a bridge.
May I please urge you, Mr President, to remain loyal behind
Mr Sununu, your Conservative ally.
May God bless you and grant you wisdom.
Sincerely,
Paturen Baker
Patricia Baker
State Committeewoman
Pinellas County
Pd PAI Art
THE WHITE HOUSE
WASHINGTON
Date:
June 21, 1991
FOR:
GOVERNOR SUNUNU
FROM: ED ROGERS
Action
Your Comment
Let's Talk
XIXX FYI
JUN-20-91 THU 16:02
WATERGATE 1010
FAX NO. 2023385950
WSI
The Reregulation President
The Vice President's Council on
tion Act of 1991." He's got support
Competitiveness is zeroed in now on
from a bipartisan group of Senators,
régulations that turn would-be Edt-
including such Democrats as Geor-
sons into paper pushers. It helps
gla's Sam Nunn, Dale Bumpers of Ar-
weigh the costs and the benefits of
kansas, Alan Dixon .of Illinois and
regulation so that when the govern-
Max Baucus of Montana. The bill
ment issues rules, they will produce
might pass with presidential support,
more benefits than red tape."
but the White House is strangely
-PRESIDENT BUSH JUNE 3. 1991
mute.
Deregulation was a pillar of Rea-
In particular, Mr. Bush's support
ganomics because economists know
is needed to overcome the political ex-
that rules impose costs that slow eco-
tortion practiced by OIRA's main op-
nomic growth. We have no doubt that
ponents-Ohio Senator John Glenn
Mr. Bush wants to cut red tape, but in
and his deputy. Leonard Weiss. The
practice his administration is creating
pair have put a hold on a planned
it. To put it baldly, the Bush presi-
Bush appointee in the hope of extort-
dency is reversing many of the dere-
ing a "compromise" from the White
gulatory gains Mr. Bush helped pro-
House that would gut OIRA. Budget
mote as vice president in the 1980s.
Director Richard Darman is said to
At the Food and Drug Administra-
be ready to accept this defeat because
tion, David Kessler is on a crusade
the would-be nominee, Frank Hodsoll,
against orange juice labels while
is his man.
THA, the only drug ever to show evi-
This political hostage-taking. we
dence of relieving Alzheimer's dis-
should add. is a growing congres-
ease, languishes in his bureaucracy.
sional outrage. Last year Mr. Glenn
OSHA and the FTC-two notorious
held Vanderbilt Prof. James Blum-
federal nannies-are also back ha-
stein hostage for so long that he fi-
rassing business. "Wetlands" that
nally gave up trying to come to Wash-
aren't even wet have been declared
ington to run OIRA. Banking Chair-
off limits to development, creating a
man Donald Riegle is currently delay-
nationwide backlash. And so on.
Ing the confirmation of Lawrence
According to the Unifled Agenda of
Lindsey and David Mullins to Federal
Federal Regulations, agencies are
Reserve posts. Since Democrats may
churning out 17% more rules than in
never again hold the presidency. they
the 1980s. And that's before including
don't seem to care how much havoc
the wave of new regulations now be-
they wreak in the executive branch.
ing produced to implement the Clean
Giving into Mr. Glenn on OIRA will
Air, Act, the disabilities act and other
just encourage more extortion. More
bills Mr. Bush likes to take political
important, it would damage Mr.
credit for.
Bush's presidential power by turning
How is one to explain this result
OIRA into the shell Mr. Glenn would
set against Mr. Bush's longstanding
like it to be. In particular. the Glenn
criticism of regulatory red tane?
"compromise" doesn't overturn a TR-
A large part of the problem is the
cent Supreme Court decision, Dole v.
quiet crippling of the White House Of
Stectworkers, that has let federal
fice of Information and Regulatory Af-
agencies write about a third of their
fairs (OIRA). This is the office. cre-
rules in such a way as to dodge OIRA
ated under Jimmy Carter, that re-
altogether.
views regulations to avoid such clas.
Senator Glenn wants to drive a
sics as the OSHA rule requiring that
wedge between the White House and
hard hats worn at industrial sites be
federal regulators to enhance
"disinfected." Hard hats have never
Congress's ability to intervene. The
been known to transmit disease, but
Constitution's founders wrote about a
OSHA still wanted to impose the $60
"unitary" executive precisely because
million cost. OIRA stopped it.
they wanted bureaucrats to be ac-
The point isn't that all regulations
countable to an elected President.
are absurd. but that someone needs to
Congress is supposed to write the
provide a sanity check. Yet the top
laws, not administer them. But then
OIRA job has been vacant for 18
Mr. Glenn is an expart in congres-
months under Mr. Bush. (Liberals
sional Interference with regulators.
seem to believe that "independent"
having lobbied them to go easy on
agencies are inherently incapable of
S&L kingpin Charles Keating.
doing economic harm and therefore
President Bush can fulfill his
need not be accountable.)
please to reduce red mpe only with
Republican Senator Bob Kasten of
the help of a strong OIRA. Kasten-
Wisconsin is proposing to reinvigorate
Nunn gives him a chance to avoid the
OIRA through the Paperwork Reduc-
label of "reregulation President."
THE WHITE HOUSE
WASHINGTON
Date: June 19, 1991
FOR:
GOVERNOR SUNUNU
FROM:
ED ROGERS
Action
Your Comment
Let's Talk
XXX
FYI
ITIIIIO livuov
chief of staff
defends trips
Sununu also hits critics
of Bush's domestic policy
By DAVID YEPSEN
Register Steff Wrtter
White House chief of staff John
the Bush administration really do like
Sununu defended President Bush's
to spend time with folks who make up
domestic agenda and his own travel
the heart and soul of this nation, to
in an Iowa speech Tuesday night.
see you and discuss issues."
"Some, who have difficulty coping
We'd rather listen to you than
with reality, suggest that the presi-
self-styled experts in Washington,
dent has no domestic agenda" to
D.C., and you can't get here without
solve problems in the country, Sunu-
traveling. I know that's a very com-
Bu told a $50-a-plate Iowa Republi-
plicated concept for some, but I'm
can Party fund-raising event.
convinced they' 11 be able to cope with
"It's an agenda that is broad, deep
lt."
and complete," Sununu said.
Randy Enwright, the executive di-
Sununu said administration critics
rector of the Iowa Republican Party,
overlook clean-air and child-care leg-
said the Iowa party paid $2,000 to
islation, the Americans with Disabili-
Kirke Van Orsdel Inc., a Des Moines
ties Act and legislation to repair high-
insurance brokerage company, to use
ways, air transportation facilities
the company's jet to fly Sununu and
and build housing as part of the do-
his assistant to Iowa.
mestic agenda.
Sununu made the comments during
Sununu defends his use of corpo-
low-key speech to a crowd of about
rate jets as essential to his job that be
1,500 attending the Iowa Republican
remain in close touch with the White
Party's Abe Lincoln Dinner at the Des
House. Critics say It is Improper to
Moines Convention Center
accept such gifts from corporations,
He used the occasion to tout the na
but state GOP officials say the reim-
tion's victory in the Persian Gulf
bursement keeps the flight from
War.
being an unacceptable or illegal cor-
"It had a tremendous dividend here
porate contribution.
at home," be said. "It reinvigorated
Gov. Terry Branstad, a Republi-
the patriotic sense of this country and
can, used Sununu's visit to press the
reawakened all those feelings that for
top aide for a presidential disaster
all too long had been suppressed and
declaration to help Iowa counties suf-
reinstilled in all of us an understand-
fering from flooding.
ing of America's responsibilities
"He didn't give me an answer and I
around
the
MAN
didn't expect an answer but I wanted
world.
to deliver it personally," Branstad
S u n 00 u
said. "He was quite supportive."
brushed aside as
criticism sur
rounding his
use of mill-
Still
tary and cor
porate jets for
his travels
"It is nice to
get cout of
Washington
and see real
people in
hometown
is
nice
to
America," he
told the Re-
get out of
publicans
Washington
There are
and see real
some folks people in
who keep ask hometown
ing why have, America.
to travel. The
fact is the
John Senune
president and
THE WHITE HOUSE
WASHINGTON
Date:
June 19, 1991
FOR:
GOVERNOR SUNUNU
FROM: ED ROGERS
Action
Your Comment
Let's Talk
XX
X FYI
WOW!
Service f Mead Data Central, Inc.
PAGE
2
1ST STORY of Level 1 printed in FULL format.
Copyright (c) 1991 Newsday, Inc.;
Newsday
June 16, 1991, Sunday, NASSAU AND SUFFOLK EDITION
SECTION: CURRENTS; NEWSDAY COVER EDITORIAL; Pg. 31
Other Edition: City Pg. 27
LENGTH: 1438 words
HEADLINE: In Your Face
KEYWORD: EDITORIAL; COVER; MARIO CUOMO; VETO; BILL; LEGISLATURE; BUDGET; NEW
YORK STATE; DEFICIT; BEHAVIOR
BODY:
UNDERSTAND one thing From the very beginning: With Mario Cuomo, there is
always a design. The governor's decision last week to veto almost $ 1 billion in
spending approved by the State Legislature might seem bizarre, might seem
arbitrary, might have left the localities and school districts in fiscal chaos,
but it was not capricious. Cuomo wanted to create the image of the politician
above the fray, courageously vetoing legislative overspending. But his action
was neither as courageous as he would portray it nor as necessary as he would
have us believe. For all the angst, he has failed to address long-term,
structural problems facing the city and state.
And, as never before, his actions reveal the ultimate, grotesque
manifestation of his style: the willful, contentious, suspicious,
self-righteous, shortsighted way of governing that has come to characterize
Cuomo as a leader. More and more, this side of Cuomo is emerging from behind
his smoke screen of soaring rhetoric and lofty idealism.
Anybody who has seen him play basketball will recognize what he has been
doing in Albany this year. This is "in-your-face" governing, a shoving, pushing,
bullying attempt to dominate. "He's a total animal on the basketball court,"
says a crony. Now the rest of us understand, too.
The misfortune, of course, 15 that this persona is far from that of the
Queens lawyer and law professor who first entered public life more than two
decades ago. Then, Cuomo was the Grand Conciliator, the private citizen who
brought warring factions together through reason and compromise, first in Corona
and then in Forest Hills. He emerged as a philosopher-king, a man of intellect,
principle and reason, a unifier who years later as governor would speak so
eloquently of family, community and values. Where have you gone, Mario Cuomo?
He's Far Above the Fray
Now, he is ripping apart the political civility that must bind together any
democratic system. He is pitting one group against another and turning what was
inevitably going to be a painful process caused by a frightening $ 6-billion
budget shortfall into a wrenching ordeal. While legislative leaders floundered,
trying to agree on a budget weeks overdue, Cuomo held himself above the fray,
disdainful of their motives, smug in the rightness of his proposals, imperious
in his rejection of their work.
Services of Mead Data Central, Inc.
PAGE 3
(c) 1991 Newsday, June 16, 1991
Even more discouraging, Cuomo has thus far been unwilling to pursue the
real solution: a twoor three-year plan that would deal with both the state's and
New York City's long-term fiscal needs. But that would have meant a high-wire
political risk. Rather, Cuomo opted to play for the short term. There has been
little or no attempt to bring city officials and labor leaders together and deal
with the city's crushing fiscal problems as part of the state's - as, in
reality, they are. There has been little or no attempt to deal with structural
waste in state staffing and spending or to find a twoor three-year revenue
source - like the personal income tax - to bridge the crisis. Cuomo's approach
is ad hoc, a slice at a time. And it falls short.
Only Two on Hand for Three-Way Talks
Make no mistake: There are no heroes here. Neither Senate Majority Leader
Ralph Marino (R-Muttontown) nor Assembly Speaker Mel Miller (D-Brooklyn) deserve
any praise for the way this has played out. They larded the budget Cuomo
presented to them, rewarding the pressure groups that have traditionally
supported their parties. But Cuomo did not attempt to hammer out a budget
agreement in Albany's traditional closed-door, three-way negotiations. Both
Miller and Marino say the governor never really got into the ring. Instead,
Cuomo chose to grandstand, to play out the process confrontationally and
publicly. Why? With Cuomo there are never easy answers. He is as enigmatic as
he is brillant, one minute challenging, the next conciliatory. Nonetheless, we
venture a few thoughts:
The budget deficit was so deep this year that Cuomo had to reject business
as usual.
This is, of course, what Cuomo and his top staff argue. Never before has
the state faced such a gaping budget deficit - nearly one-fifth of the general
purpose budget! In years past, compromise with the Legislature was reached by
cutting from growth, not cutting from the base. Usually, new money was found to
paper over differences. The Republicans, especially those on Long Island, would
support aid for the cities in exchange for additional school aid. This year,
there was no growth from which to cut, and Cuomo said it was unconscionable to
send hundreds of millions in additional school-aid dollars to "wealthy" Long
Island school districts when the Legislature was cutting state programs for
society's most defenseless and for public safety. The Legislature gave him a
budget almost $ 1 billion out of whack. What was he to do?
This is all part of a presidential campaign strategy to move rightward.
What could be more effective for Cuomo, whose greatest liability as a
national figure is his reputation as a spend-and-tax liberal, than to stand up
to a free-spending Legislature like a fiscal conservative? He is positioning
himself as the political outsider, fighting the special interests and greedy
legislators. Just re-elected, he's obviously not trying to impress New Yorkers.
And he is about to embark on a national speaking tour.
His adamant, uncompromising opposition to an increase in the personal income
tax, even a temporary surcharge, fits into the presidential politics
explanation. The income tax is the fairest, most equitable way of taxing,
especially when compared to the regressive gas tax he proposed or the even more
regressive petroleum business tax the Legislature ultimately chose. Republican
legislators say that if Cuomo had supported Miller's tax surcharge proposal,
Services of Mead Data Central, Inc.
PAGE
4
(c) 1991 Newsday, June 16, 1991
Marino would have eventually gone along. But Cuomo took the income tax off the
table at the beginning, saying it would be disastrous for New York's economy.
This plays well in Washington and even nationally. There are Democrats who are
waiting for Cuomo to suddenly appear on his white horse and save the party.
They will see what they want to see. But his penchant for confrontation and
extreme sensitivity to criticism - both evident in this budget battle - leave
doubts about the type of campaign he would run and how he would perform as
president.
Cuomo is in one of his dark moods.
This view says that the governor, angry and frustrated, is allowing the least
attractive aspects of his personality to come to the fore. He won re-election by
a disappointing margin against incompetent opposition, is faced with an
unprecedented budget crisis and is just sick and tired of dealing with the
inflated egos and inferior intellects of the Legislature. He wears his contempt
for lawmakers and their parochial concerns on his sleeve, rubbing their noses in
what the considers their pusillanimity and implying his moral superiority. After
eight years in Albany he has no more patience the never had much) to WOO and
wheedle legislators, to construct the maze of carrots and sticks necessary to
make the system work. His contempt for the Legislature has overwhelmed his
better instincts, especially after the Legislature cut his state programs to
fund their local concerns. Who are they to tell him how to save the state's
finances? We have gone from watching a brooding Hamlet on the Hudson to a
display of hubris on the Hudson - a flawed conviction that only he knows the
answers and can bring the state to salvation.
What's the answer? Probably some of each. The problems are unprecedented and
the legislative leaders blindly parochial. But Cuomo's mood and possible
national ambitions can't be discounted. He is infuriated by accusations of
political motivation and says he resents analysis of his motives. Look at the
result, he says. The budget is balanced. But, of course, that is not enough. The
cost in terms of fiscal chaos and loss of basic civility has been very high, too
high. And the need for longer-term reform has been ignored. This budget crisis
15 not over, and the bitter political residue will only make it more difficult
to find solutions in the future.
Maybe WE expect too much from Mario Cuomo. Maybe it is unfair to hold him
to the high standards of his own rhetoric and the promise of his intelligence
and desire to do good. Maybe, we should realize his potential is a mirage and
accept his flaws as the reality. It's a little bit late in the game for naivete.
For now, we can only rephrase the question: Where have you gone, Mario Cuomo -
and where are you going?
GRAPHIC: 1) UPI Cover Photo-(Mario Cuomo playing basketball). Photos-2) (Mario
Cuomo in a baseball uniform). 3) (Mario Cuomo playing baseball).
THE WHITE HOUSE
WASHINGTON
June 18, 1991
MEMORANDUM FOR GOVERNOR SUNUNU
ROGER PORTER
DICK DARMAN
FROM:
ED ROGERS
SUBJECT:
NRC/CREDIT INFORMATION
This group is in town for their annual
meeting.
I think the attached makes some pretty
good points.
FYI.
NRC
NATIONAL
REALTY
COMMITTEE
June 17, 1991
Real Estate's Roundtable
1250 Connecticut Ave., NW
Suite 630
Washington, DC 20036
THE CREDIT CRISIS -- AN AGENDA FOR ACTION
(202) 785-0808
Fax (202) 223-3857
Overview
Over the past eighteen months a credit crisis of national proportions has developed
and grown increasingly severe, particularly for real estate markets. (See attached charts.)
Today's credit crisis is marked by unchecked declines in real estate values, illiquid real
estate markets, mounting stress on the banking system, increased unemployment and an
eroding state and local property tax base. This crisis now requires a nationally coordinated
initiative -- much like that utilized to attack the LDC debt crisis in the early 1980's. The
goal should be to foster an orderly transition period during which the economy, the banking
system and the real estate marketplace can move to a new equilibrium -- characterized by
disciplined lending, sensible borrowing, rational tax policy, and a healthy and sound
marketplace. To achieve this goal an appropriate level of credit and capital must be
available to finance existing real estate activity.
Today's Main Problem
Banks currently hold about $400 billion of commercial real estate mortgages, a
substantial portion of which is maturing over the next 24 months. A combination of
regulatory, financial, market and psychological forces is driving banks to substantially
reduce the amount of these loans in their portfolios. Consequently, many banks often
refuse to extend, or "roll over," these loans as they become due, and instead, require
immediate repayment.
There is a limit to the capacity and willingness of other financial intermediaries such
as insurance companies and pension funds to provide the needed replacement capital. For
example, during its peak year of 1986, the life insurance industry provided only $21 billion
in new real estate loans, less than 6 percent of the total commercial real estate loan
portfolio presently held by banks. Compounding the issue created by the $400 billion of
bank loans, about $75 billion in additional real estate loans made by the life insurance
companies are coming due over the next two years.
As a consequence, unless changes are put in place, a further withdrawal of capital
from real estate markets will take place exactly at a time when such capital is most needed.
This will lead to a further downward pressure on values, increased property ownership by
lenders and the federal government, additional weakness in the banking system and
continued sluggishness in the nation's economy.
A Transition Plan
Regulatory Balance
Sensible transition mechanisms must be adopted that balance the need for a safe
and sound banking system with the need for legitimate credit flows to the economy. In
addition, there still remains no clear understanding regarding standards that bank
examiners should be applying across the country. Any initiative must have as its goal the
renewal of good loans to provide liquidity and breathing room for borrowers and lenders
alike, and should address the following issues:
A phase-in of the new bank capital standards. Consideration should be given to
extending the full implementation of the Bank for International Settlements (BIS)
capital requirements beyond December 31, 1992. (For example, Japan has extended
full implementation of these standards until December 31, 1993 due to its real
estate problems.) Current pressure on U.S. banks to meet these higher capital
standards encourages banks to shrink their balance sheets by not renewing real
estate and other credits.
A review of the classification standards for performing real estate loans. Overly
stringent loan classification standards discourage renewals of real estate loans --
even performing loans with historically low default risk. Criteria for classifying real
estate loans should be reviewed to ensure higher classification levels for loans where
the performance experience indicates little risk of default. This would be consistent
with the recent agreement by bank regulators to upgrade by two categories the
classification of performing bank credits to foreign entities.
A revision of the "insubstance foreclosure" rules as they apply to real estate.
Current rules classify all loans in which the borrower has no equity -- based on
unrealistic appraisals made in a dysfunctional marketplace -- as "insubstance
foreclosure." This impairs bank capital and distorts the true risk associated with a
lender's portfolio. Although these rules were designed specifically for rusting oil
rigs in the mid-1980's, not real estate, they nevertheless are being applied today
across-the-board. If these rules' application to real estate is to continue, they should
be reviewed and revised with that purpose in mind.
A liquidity facility may be needed and appropriate. The requirements for
refinancing the nation's real estate are increasing just as the industry is
characterized by unprecedented illiquidity. A liquidity facility to meet these
refinancing requirements may be necessary to restore the health and soundness of
the banking and real estate industries as well as the economy. For example, some
have suggested that the Federal Reserve should use its discount window to buy high-
quality commercial loans from healthy banks. Others have suggested that a
secondary market for banks' commercial real estate loans should be facilitated.
These, and other options, should be explored immediately.
The appraisal of real estate on a liquidation basis must be halted. Appraisals
should reflect long-term earnings capacity. A clear and direct statement is
necessary to ensure that real estate is assessed on the income-producing capacity of
the properties over time. Existing guidance that offers this appraisal technique as
an option is being largely ignored in the field
notwithstanding encouragement
from Washington to incorporate these techniques. Realistic appraisals will, as an
added benefit, mitigate some of the pressures that are forcing banks into insolvency
and depleting the FDIC's insurance pool.
Prudent loan renewals must be encouraged. Policies and regulations must be
adopted urging that banks renew or extend loans backed by existing income-
producing real estate in accordance with current underwriting standards. These
initiatives must include a revision of supervisory agreements (i.e., letters of
commitment, memoranda of understanding, cease and desist orders) between bank
directors and regulatory agencies that effectively mandate banks to rapidly reduce
real estate loan concentrations. At a minimum this language should be changed to
provide the banks a reasonable period in which to reduce the criticized loans "over
time."
Policymakers must focus on meaningful initiatives to address today's crisis. While
the establishment of national lending criteria may be helpful for the banking
industry and appropriate at some point, it is not relevant to today's problem, and in
fact is counterproductive to the extent that it diverts attention and energy away from
dealing with the crisis at hand.
Tax Policy
Finally, it is critical that rational tax policy be applied to real estate. The stability of
the real estate industry has suffered during the past decade from tax rules that in 1981
overstimulated investment in real estate, and in 1986 overreacted to those earlier rules,
artificially eroding real estate values. A long-term, rational tax agenda for real estate is
needed and at a minimum should include:
Modifications to the passive loss tax rules. The current passive loss rules create a
tax liability that exacerbates the deterioration of real estate values by misstating the
true economics of owning and operating real estate. Modifications should be made
to ensure that the passive loss rules are applied to the real estate industry the same
way that they are applied to other businesses.
A reduction in the capital gains tax. A lower capital gains tax would be an
important step in reducing U.S. capital costs and promoting investment.
Importantly, for real estate it would lessen the need for debt financing, help attract
needed capital, ameliorate the taxation of inflationary gains that exists currently and
help to stabilize real estate property values.
Tax rules that do not unnecessarily penalize real estate restructuring or workouts.
Given today's troubled real estate markets, the prospect that debt may be
restructured to provide revised payment terms or reduced total debt is increasingly a
reality. In addition, the cancellation of debt resulting from a foreclosure, or a deed
in lieu of foreclosure, is becoming a more common occurrence. The tax
consequences associated with these transactions can lead to significant tax liability,
many times leading borrowers to bankruptcy or insolvency. In particular, the option
to reduce the tax basis in retained depreciable property as an alternative to debt
forgiveness income, which was repealed in 1986, should be reinstated.
Conclusion
We have outlined several initiatives that would do much to alleviate the current
crisis in real estate credit availability, and in turn strengthen the banking system and
promote general economic health of the recovery. Clearly, the most important conclusion
to draw from today's real estate environment is not that each of these specific initiatives
need be adopted exactly as proposed, but that meaningful activity, whatever its form, must
be undertaken, soon, to constructively address the crisis.
Growth in credit for commercial and multifamily
residential real estate has plummeted to a post-war low
Rates of Growth in Credit for Multifamily and
Commercial Real Estate
Percent
20
15
10
5
0
1950
1960
1970
1980
1990
Source: Federal Reserve
And even though overall credit growth remains fairly strong even in
in the recession, credit for commercial and multifamily real estate
has actually fallen in each
of the last two quarters.
Growth Rates for Total Credit and for
Commercial and Multifamily Real Estate Credit
Percent
12
Total credit
10
8
Commercial & multifam.
real estate credit
6
4
2
0
-2
'89I 89II 89III 89IV '90I 90II 90III 90IV '91I
Source: Federal Reserve
Real estate's credit woes may be even worse than they first appear.
Private lenders drained $42 billion* in credit
from commercial and multifamily real estate at the start of 1991!
It was only because the government-- mainly the RTC -- absorbed $34 billion in mortgages
that the decline in credit to income-producing real estate
was limited to $8 billion.
Growth in Commercial and Multifamily Mortgages
by Lender, First Quarter 1991
All lenders
Government
All private lenders
Commercial banks
Savings institutions
Life insurance COS.
Other lenders
-60
-40
-20
0
20
40
Billions of dollars
Source: Federal Reserve
* Data on this page are at seasonally adjusted annual rates.
Commercial banks and real estate have become increasingly interdependent,
as banks have become the largest source of finance
for commercial and multifamily real estate
Percent of Commercial and Multifamily Real
Estate Loans Outstanding by Kind of Lender
Percent
100
Other lenders
80
Life insurance COS.
60
Savings institutions
40
20
Commercial banks
0
1970
1980
1990
Source: Federal Reserve
And real estate loans have jumped from less than a quarter of
all bank loans twenty years ago to 40 percent today.
Banks Real Estate Loans as a Share of All
Bank Loans
Percent
50
40
30
20
10
0
1970
1980
1990
Source: Federal Reserve
This growing interdependence could spell trouble for America's economy.
Bank loans have shorter maturities than credit from other lenders.
In 1990, for example, real estate borrowers repaid 17 percent of the amount they owed to banks,
but less than six percent of their debt to savings institutions
and insurance companies, and less than two percent to other lenders.
Repayments on Commercial and Multifamily Real
Estate Loans as a Percent of Total Amount Owed
(Based on First Three Quarters of 1990)
Commercial banks
Savings institutions
Life insurance COS
Other lenders
0
5
10
15
20
Percent
Source: Dept of Housing and Urban Development
Often these relatively short term loans are not repaid but are, instead,
refinanced. If refinancing for the billions of maturing real estate
loans is not forthcoming, the banking system and
the entire economy could face severe difficulties.
THE WHITE HOUSE
WASHINGTON
Date: June 17, 1991
GOVERNOR SUNUNU
FOR:
FROM: ED ROGERS
Action
Your Comment
Let's Talk
XXX FYI
FROM
GM
JAMES D. JOHNSTON
VICE PRESIDENT
INDUSTRY-GOVERNMENT RELATIONS
TO Ed Rogers
6/8/91
the White House
Ed:
Tunderstand there may be
some mesumbraturing of our
posetion on gasoline taxes as a
resultaf some less than accurate
media coverage of Bob Stempel's rewarks
at our annual mealing - (I'm enclosing
a copy; CAFE is mentined on page 12.)
What we have consertently said
is that if government decides to
intervene, it should do so through
unforcing mahet forces (e.g.a
bread-based energy fee) and not
through command and centrol propams
(u.g. CAFE).
of you have any prestions, phase
give me Rejardo a cell.
1660 L STREET. N.W.
SUITE 401
WASHINGTON. D.C. 20036
(202) 775-5090
(313) 556-4671
Jus
GENERAL MOTORS BLDG.
ROOM 13-137
DETROIT. MICHIGAN 48202
FINAL TEXT
Remarks by
ROBERT C. STEMPEL
Chairman
GENERAL MOTORS CORPORATION
at the
GENERAL MOTORS ANNUAL STOCKHOLDER MEETING
Nashville, Tennessee
May 24, 1991
0 Good morning, ladies and gentlemen! Welcome to the 83rd annual meeting of
the General Motors Corporation.
0 The members of the Board of Directors, GM management and I all enjoyed the
opportunity to visit with many of you this morning as you looked at some of
the new product and information displays on the patio.
0 And welcome to Nashville -- the home of country music, the state capitol of
Tennessee, the state that's the home of our newest General Motors team --
Saturn!
- We're glad that so many of you could be with us today. A preliminary
count indicates that attendance at this meeting is substantially higher
than last year's meeting.
- Over the years, several of our stockholders have asked us to move the
annual meeting to different cities around the country.
- By moving the meeting to Tennessee this year, we saw a special
opportunity to let you -- the owners of General Motors -- see some of
the exciting things that are happening at Saturn Corporation -- GM's
newest subsidiary in Spring Hill.
- In fact, about 50% of you are from Tennessee and the eight bordering
states today.
0 We hope to finish our business at this meeting this morning, so that you
will have time to tour the Saturn facility, see the special displays that
have been set up there, and drive some of the outstanding GM cars and
trucks that will be available at the plant for you.
- It's another opportunity for you to get a better look at your company.
-2-
0 In order to facilitate our business today, we have reduced some of the
times allowed for questions and comments, targeting to finish before noon.
- There's still plenty of time to cover the business scheduled to come
before this meeting.
- By the way -- if anyone would like to ask a question or make a comment,
please contact an usher for assistance.
0 I hope all of you had a chance to see our new products on display this
morning. The core business of General Motors is great cars and trucks!
And we have quite a few -- more in 1991 and 1992 than any other
manufacturer:
- The new 1992 Cadillac Seville is the fourth generation of this
outstanding car. The initial reaction -- as we showed this beautiful
new Seville at auto shows around the country -- has been overwhelmingly
favorable. It's aerodynamic, stylish, and, with its superior fuel
economy and low emissions, bound to be a winner. It also features GM's
new electronically controlled transmission.
- We've got three new family-size cars: the Pontiac Bonneville, the
Oldsmobile Eighty-Eight, and the Buick LeSabre -- latest in the Buick
series of best-built domestic cars.
- The full-size, comfortable Chevrolet Caprice sedan.
- The Impact electric car. GM is the only corporation to announce firm
plans to build an electric car. We have selected the Lansing Craft
Centre -- former home of the Buick Reatta -- to be the assembly plant
for this new vehicle -- based on the dedication and high skill level of
the Lansing work force.
-3-
- The HX3 Hybrid vehicle combining the best of electric- and gasoline-
powered vehicles to meet the future environmental standards. This is an
experimental vehicle -- not yet scheduled for production. It indicates
the depth of your company's commitment to the future of automotive
transportation.
- And, of course, the new Saturns, which you will have a chance to see --
and drive -- this afternoon on our plant tour and ride-and-drive program.
0 We are pleased that so many industry experts recognize the quality of GM's
new models. Surveys rank the engines and transmissions, the "heart of the
car," high for driveability, excellent fuel economy, low emissions and
durability.
- Our future product plans are based on continuous improvement to assure
customer satisfaction.
0 Now, let me introduce the four other officers of the corporation who are
seated on the stage today.
- Immediately to my left is our general counsel, Harry Pearce.
- To his left is our president, Lloyd Reuss.
- Next to him is our executive vice president in charge of finance, Bob
O'Connell.
- And to his left, our secretary, Dave Collins.
0 The 17 nominees for the Board of Directors are with us today. Their
pictures and biographies are set forth on pages two through six of the
Proxy statement.
-4-
- Will the Board members please stand?
0 We are also pleased to have many of our GM retirees here today, and while I
can't acknowledge all of you, let me introduce a retiree many of you know
- our former chairman from 1974 to 1980 -- Mr. Thomas Murphy.
0 Now - as is our custom -- it is time to present a brief overview of your
corporation.
0 As a company, General Motors is judged by the products it makes, and the
return it delivers to its stockholders.
- Many of our customers don't know about the tremendous engineering
resources at GM.
- They don't understand the complicated marketing, design, and facilities
planning that go into developing every new vehicle.
- And they don't comprehend the complex web of suppliers, component
operations, and assembly plants required to produce a modern car or
truck.
0 And that's as it should be. For the people who buy our cars and trucks,
the end product is the important thing.
- The men and women of General Motors are in the business of producing
cars and trucks to satisfy customers.
- And customer satisfaction is the yardstick by which we expect to be
measured.
- And customer satisfaction with GM products determines the return that GM
can offer its stockholders.
-5-
0 And all of us on the General Motors team are proud of the cars and trucks
we manufacture. They're the highest-quality vehicles this corporation has
ever produced -- automobiles that can compete with vehicles produced
anywhere in the world.
0 Our extensive list of new products -- much larger than any other
automaker's -- also represents a commitment to focus on our core business,
cars and trucks and to stick with our aggressive new product
introduction plan for the 1990s -- even in these difficult economic times.
- We're not throttling back.
- If anything, we're accelerating our plant changeovers, SO that we can
get our exciting new products out to customers sooner than originally
planned.
0 We're proceeding with those new vehicle introductions, even though the
turbulent events of the last nine months have devastated auto sales for all
the domestic manufacturers -- including General Motors.
- During the first quarter of this year, sales for each of the Big Three
were off by about 21%.
- Many parts of GM performed well in 1990 and the first months of 1991,
but our total performance was overwhelmed by declining sales in the
North American automotive market.
0 We expect to see a gradual recovery in the U.S. economy begin later this
year, but with the current industry volume at the lowest point since 1982,
it will be some time before we get back to normal trend volume.
-6-
- Consumer confidence has started to improve, and that is a good sign. We
hope it will soon be reflected in improved sales. But to date,
consumers are still worried about their future. They're not sure about
the outlook, and they're holding off on major purchases.
0 Consumers are glad the armed conflict in the Middle East has ended, and
they are positive in their attitude about our country and president.
GM supported the President's actions, and we were directly involved in
the Persian Gulf conflict.
0 At sea, on the land, and in the air, technology developed by our Hughes
Aircraft subsidiary played an important role in the success of American and
allied troops in the Persian Gulf war.
- Most of us were fascinated by what we saw on CNN -- missiles being
dropped into specific targets -- like the back doors of enemy
headquarters.
- But missiles and technology were only part of the equation -- it was the
skills and training of our Armed Forces, the men and women in the
military theater, that made the difference.
0 More than 500 General Motors men and women saw active military duty during
Operations Desert Shield and Desert Storm.
- We commend those people and all the fine Americans who served the United
States and helped free Kuwait.
- The courage and dedication demonstrated by those military personnel have
given us a new sense of pride. They are an example for all Americans
today and for generations to come.
-7-
0 We thought it would be appropriate, as we start this Memorial Day holiday,
to pay special tribute to the military reservists of GM who served during
the Persian Gulf conflict.
0 Representing all GM men and women who served in our Armed Forces, we have
here with us today 33 of our employes who were called up during that time.
- Will the military reservists of GM please stand, along with any
stockholders who may have served in the Middle East, and be recognized?
0 These men and women represent all of our people who served with honor,
responding in time of our country's need.
- We are delighted our military people are returning and beginning to put
their lives back together. We welcome them home with pride.
0 An economic recovery alone will not secure the return that you -- the
owners of the business -- want and deserve.
- That's why we have undertaken a comprehensive cost-cutting and cash-
conservation program.
- We've reduced executive compensation and lowered the dividend. We're
working with suppliers to lower costs, and we are offering early
retirement incentives to reduce the size of our salaried work force.
0 Such cost reduction efforts are necessary in a time when extraordinary
demands are being made on our business.
-8-
0 Further, a number of financing initiatives have been undertaken or are
being contemplated to help meet the capital needs of the corporation.
0 It is important that GM continue to offer a wide variety of cars and trucks
to serve the needs of our customers. And it is important that we update
and upgrade those products frequently.
- New products are the lifeblood of our business.
- By offering these new vehicles with enhanced value and excitement, we
plan to remain the leader in the toughest and most competitive
automotive market that North America has ever seen.
- We need to continue our aggressive future product program, and that will
require capital spending, even during this downturn.
0 Now, even in the bleak business climate of the past several months, there
are some successes that deserve special mention.
0 One is GM's continuing good results in Europe and other markets outside the
U.S. and Canada. During 1990 and the first months of 1991, GM's
international operations again posted an outstanding performance record.
- With 1990 sales topping $30 billion, GM's international operations would
have placed 11th on the Fortune 500 list of the largest U.S. industrial
companies, if they were a separate company. That would have put GM
international operations ahead of the entire Chrysler Corporation.
- In profits, our international operations would have been outranked by
only four U.S. companies.
0 We are also extremely pleased by the continuing success of EDS.
-9-
- Since GM acquired EDS in 1984, the data processing and computer services
subsidiary has improved its revenues more than six-fold and continuously
expanded its business.
- EDS now has more than 62,000 employes worldwide and supports more than
7,000 customers in 28 countries.
- For 1991, EDS will have more than half of its business with customers
outside GM, an indication of its competitiveness.
0 Delco Hughes Electronics is a leader in automotive electronics, providing
all of GM's electronic controls and selling to the worldwide automotive
industry.
0 Our financial subsidiary, GMAC, is the largest consumer financing operation
in the world. In 1990, GMAC posted its second best earnings ever.
0 Even with those successes, the greatest challenge for General Motors
remains improving the profitability and market penetration of our North
American automotive operations.
- And our North American team -- led by our President Lloyd Reuss -- is
continuing with strategic plans to make our operations leaner, to
streamline our design and manufacturing processes to eliminate waste,
and to seek out ways to bring our products to market faster.
0 While emphasizing GM's plans for new products and improved profitability, I
also want to restate -- and re-emphasize -- our commitment to the
environment and automotive safety.
-10-
- For more than three decades, General Motors has seen a clean and healthy
environment as a top priority.
- We take pride in our leadership role in reducing emissions from both
vehicles and plants and in our work to minimize wastes and to dispose of
those wastes in an environmentally sound manner.
- And even in tough economic times, our commitment to safer driving and
cleaner air and water continues to move forward.
0 In March of this year, the Board set forth the "General Motors
Environmental Principles," as guidelines for business decisions and daily
conduct of operations all over the corporation.
- These GM principles trace their roots back to the 1950s and '60s when
the Corporation first began to deal with these issues.
- These principles are listed in the Public Interest Report. A copy is
included in the packet you received today.
- And I urge you to read this document, which gives more detailed
information on many facets of GM's role in our nation and communities.
0 Many challenges lie ahead as GM meets its goals in environmental and safety
areas.
0 We have said before, and I will say it again, "GM will meet the
requirements of the new Clean Air Act, passed by Congress last year.
- We do not yet have all the technology in hand to reduce automotive
emissions to the levels required by this legislation.
- Keep in mind, today's vehicles have very low emissions, and cutting the
last small amount in half is difficult.
-11-
- But our research and development is proceeding at full throttle.
- We have successful low-emission prototype vehicles being tested on the
road now.
- The challenge will be extending this new technology to workable,
mass-produced vehicles.
- The costs are very high, and the atmospheric benefits are marginal. But
the act is law, and GM will comply.
0 In addition to reducing vehicular emissions, we're committed to removing
CFCs -- chemicals that have been found to cause a breakdown in the
stratospheric ozone layer -- from our products and our processes by the
mid-1990s.
- Unlike other global-warming gases, CFCs are man-made and can be replaced
with less harmful substances.
- Since CFCs have 10,000 times the impact of co₂ -- molecule for
molecule -- this worldwide decision is a meaningful one for the
atmosphere.
- This means a major redesign of air conditioning for all our vehicles, as
well as changes in many of our manufacturing processes.
- This work is moving ahead on schedule. Many of the process changes are
already under way, and the design of the new air-conditioning systems is
on schedule.
0 We are also committed to continuously improving the fuel economy of our
vehicles.
- With every new car or truck we introduce, General Motors' goal is to
make its fuel economy equal to or better than the vehicle it replaces.
-12-
- Since 1974, the fuel economy of GM's car fleet has improved by 125
percent.
- Chevrolet sells the most fuel-efficient car available in the U.S. -- the
Geo Metro XFi. On the highway it is rated at 58 mpg.
- And in nine of 18 EPA categories for vehicles with automatic
transmissions, GM offers the fuel-economy leader.
- The full-size Buick Park Avenue gets better fuel economy than mid-size
Japanese cars with a V6 engine.
- Those who would label GM cars "gas guzzlers" don't know how to read a
fuel gauge.
- If you want a fuel-efficient car -- no matter what size -- buy GM!
0 However, we oppose legislation that would increase the Corporate Average
Fuel Economy standard -- or CAFE.
- We know such government-imposed mandates are ineffective because they
work counter to market forces.
- As long as gasoline prices remain low, there is little incentive for
Americans to purchase more fuel-efficient vehicles.
- If the government undertakes policies to conserve energy, we urge it to
focus on harnessing market forces to reduce energy use.
0 In the area of safety, it our belief that it is not one thing - not one
feature or technology that provides safety. It is everything -- the total
safety system in your car.
- "Safety isn't one thing, it's everything." That's a theme we're using
in our advertising.
-13-
- That's why we've pioneered introduction of such crashworthy safety
features as the energy-absorbing steering column and instrument panels,
side-guard door beams, air bags, high-penetration-resistant windshields,
and -- more recently - the self-aligning steering wheel.
- Our biomedical science laboratory - the world's first -- is unique to
the auto industry and is a world leader in helping us to better
understand how the human body reacts to a crash and how best to prevent
injury.
0 In response to growing customer acceptance, more and more GM vehicles are
equipped with air bags to enhance occupant protection.
- However, we continue to emphasize the safety belt, which is the primary
system for occupant restraint in case of a crash.
0 When it comes to the safety of people in cars and trucks, the air bag is a
supplemental device. It can offer additional protection in more severe
frontal impacts. But even in vehicles equipped with air bags, safety belts
must be worn.
0 Because we believe so strongly in the importance of safety-belt use, we are
whole-heartedly supporting the National Highway Traffic Safety
Administration's campaign, which started this week, to increase the number
of Americans who wear their belts to 70% by 1992.
- I hope that we will exceed that number as people realize that belts are
necessary.
- And I urge all of you to buckle up this holiday weekend and every time
you travel by car or truck. It is the single most important thing you
-14-
can do to protect yourself and those who travel with you.
0 We also will continue to provide our customers with the best available
crash-avoidance technology.
- In fact, in most accident situations, the driver can avoid an actual
crash!
- That's why anti-lock brakes, devices that can help drivers stop in a
shorter distance and avoid skids, will be available on virtually all
domestically engineered GM passenger cars and light trucks by 1993, and
by 1994 anti-lock will be an option on most products that GM sources
from abroad.
- Because anti-lock brakes prevent wheel "lock-up," the driver is better
able to "steer clear" of an accident.
- In both normal driving and panic situations, effective braking is
critical to avoiding a crash.
- ABS allows even the novice driver to brake like an expert!
- Combined with GM's long-standing leadership in ride and handling,
anti-lock brakes allow drivers to maintain excellent control in most
driving situations.
- GM believes that anti-lock brakes are one of the most significant
advances in safety technology in decades.
- That's why we're moving SO rapidly to install them in GM vehicles.
- GM feels anti-lock brakes should be available on ALL cars, not just
high-priced, luxury vehicles.
- And we've developed a lower-cost anti-lock brake system -- called ABS VI
-- to accomplish that. It will make this important safety feature
available to buyers of lower-priced cars at a reasonable price.
-15-
0 As I list only some of the challenges that GM faces in the next few years
-- a continued aggressive program of new product introductions, reduced
vehicle emissions, elimination of CFCs, improved fuel economy, and
increased safety - it is obvious that the task before us is enormous.
0 And now that I am three-quarters through my first year as chairman, I would
be remiss if I did not take the time to thank the men and women of General
Motors for their tremendous effort to bring the corporation as far as we
have come in tackling the competitive, financial, and regulatory challenges
that face us.
- Their efforts have made it possible for GM to achieve tremendous strides
in quality and customer satisfaction.
0 I also want to thank GM suppliers and dealers for their part in helping GM
maintain its world leadership in the automobile industry.
0 And thanks to the hundreds of stockholders who have written to me,
supporting the difficult decisions we have made.
0 Thanks to the outstanding work force at GM, our outstanding suppliers and
dealers, and our supportive stockholders, I am also confident that we can
cope with the challenges that lie ahead.
- GM is putting all its resources - human and technological to work on
the tasks at hand.
- We're proud of what GM people and technology have accomplished in the
past.
- And we have the skills and determination to take on the future.
-16-
0 And with those skills and that determination, we know that we manufacture
the best GM cars and trucks ever -- the finest automobiles in the world.
- That's the plan for making GM competitive, and that's the plan for
making your company successful and productive in the future.
0 Thank you.
#
#
#
5194a/rna/rt
THE WHITE HOUSE
WASHINGTON
DATE: June 17, 1991
TO:
GOVERNOR SUNUNU
FROM: ED ROGERS
Is there anything we'd like to ask/add?
Please advise.
Thanks.
CC: Andy Card
06/12/91 13:16 FAX 313 350 3023
MARKETSTRATEGIES
<
002/004
Market
Strategies
1000 Town Center
Suite 1600
Southfield, MI 48075
(313) 350-3020
FAX (313) 350-3023
Frederick T. Steeper
Principal
MEMORANDUM
TO:
Ed Rogers
FROM:
Fred Steeper
DATE:
12 June 1991
SUBJECT: Americans Talk Security
As you may be aware, I have been conducting national surveys for Americans Talk Security
(ATS). We are about to begin our 16th study, which will focus on the public's perceptions of and
preferences for the new world order.
Attached, you will find some examples of questions we asked in ATS #15, which was conducted
in March. We are looking for additional questions to be included on a similar list in our current
study. and we would like to include some items which reflect the Administration's point of view.
If there are any specific questions or general sentiment you would like to test, please call me.
We are very anxious to have your input for our study.
06/12/91 13:17 FAX 313 350 3023
MARKETSTRATEGIES
<
003/004
Market Strategies, Inc.
President Bush says that the war in the Persian Gulf is the beginning of a NEW WORLD ORDER -- new ways
for the United States and other countries to behave. I am going to read you some ways of doing things that
might be part of the New World Order, and I'd like you to tell me whether you strongly agree, agree, disagree,
or strongly disagree? (Items randomized).
Str. Smwt Smwt Str. DK/ Collapsed
Agr. Agr. Dis. Dis. Ref. Agr. Dis.
Q58. The United States should
use its position to get other
countries to join together to
take action against world
environmental problems
69%
23
3
3
1
93% 6
Q53B. (HALF SAMPLE B) There should
be a general understanding among
nations that any country threatening
to use chemical or nuclear weapons
must be stopped, even if that means
the use of military force by the
United States and other countries.
74%
18
4
3
1
92% 6
Q52. The United NATIONS should play
a much bigger peacekeeping and
diplomatic role than it did
before the Gulf War.
58%
28
7
4
3
86% 11
Q53A. (HALF SAMPLE A) There should
be a general understanding among
nations that any invasion of one
country by another must be stopped,
even if that means the use of
military force by the United
States and other countries.
52%
32
8
5
3
84% 12
Q56. The United Nations should
monitor and tax international
arms sales with the money going to
famine relief and humanitarian aid.
46%
37
8
6
4
83% 14
Q59. The United States should
use its position to promote
democracy in Eastern Europe,
the Middle East and elsewhere
in the world.
35%
44
12
6
3
78%
19
Master Questionnaire
38
06/12/91 13:17 FAX 313 350 3023
MARKETSTRATEGIES
1
004/004
Market Strategies, Inc.
Str. Smwt Smwt Str. DK/ Collapsed
Agr. Agr. Dis. Dis. Ref. Agr. Dis.
Q60. The United States should
use its position to force our
trading partners in Europe and
Asia, to open up their markets
to American products
51%
26
15
7
2
76% 21
Q55. The use of force seldom
solves problems. The United
States and the United Nations
should rely on economic sanctions,
diplomatic pressure and
judicial remedies in handling
international threats.
27%
42
17
9
4
70% 26
Q57. The U.S. should use its aid,
weapons and alliances to maintain
a balance of power between hostile
countries in the various parts
of the world.
21%
41
21
11
5
62% 33
Q54A. (HALF SAMPLE A) The United
States should take the LEAD
military role where there are
problems in the world requiring
a military response, with the
costs shared by a broad group
of allies.
22%
35
23
15
5
57% 38
Q54B. (HALF SAMPLE B) The United
States should take the LEAD
military role where there are
problems in the world requiring
a military response.
13%
33
31
20
3
46%
51
Master Questionnaire
39
THE WHITE HOUSE
WASHINGTON
Date:
June 17, 1991
FOR:
GOVERNOR SUNUNU
FROM:
ED ROGERS
Action
Your Comment
Let's Talk
XX
X FYI
JUN-12-91 WED 16:34
P.02
June 11, 1991
The Honorable George Bush
The President
The White House
Washington, D.C. 20500
Dear Mr. President:
We understand that Chief Minister Mangosuthu G. Buthelezi, head of
the multi-racial, two million member Inkatha Freedom Party, is
scheduled to meet with you at the White House June 20.
We urge you to receive the Chief Minister as publicly and as warmly
as you have received other key political figures from South Africa.
We believe that he merits a joint appearance with you in the Rose
Garden, an honor accorded to other South African leaders. It is
important that the United States Government show even-handedness
and fairness in its approach to South Africa, in recognition of the
fact that a peaceful and democratic political settlement depends
upon the consent of and reconciliation among all major parties.
It could be argued that Chief Minister Buthelezi deserves special
recognition from you in that, singularly among major black leaders,
he has stood consistently and firmly against violence, economic
sanctions, and for a free-market economy. We believe that Inkatha
Freedom Party's platform offers the best hope for a free and
democratic society, and one which will expand wealth and
opportunity for all South Africans.
Sincerely,
DWSellan
Dumcan w. SellArs
International Fresom Fon.
Mike
Michael Johns
The Heritage Foundation
JUN-12-91 WED 16:34
P.03
Ty L with
Henry L. Walther
United States Pefers
committee
Wm. P. Hon
Wr. P. Hore
S.T. Drokers AMERICAN SECURITY COdNOIL
J.MinorRoberts
American fortHigh Frantier
Selesta Jan Lawan CelesteAnnhawson National Defense Council
OCT Kelly
ART KELLY
Found.
hower Deven
CNP Action, INC.
Less 60 Paszfor
N.F.A.H.
Steven J. Hildebrand
Ronald W. Pearson
Ronald W. Pearson
American Defense Lobby.
Public Advocate of the US I
Gray Multiary
Troy Mullimax
conservative carers Foundation
James a. Lolesuick
Barl Upty
BRADCORD PHILLIPS
The Conservitive Caucer, INC.
NOELLE M. McCORMICK
AMERICAN CONSERVATIVE UNiON
air June
auadit ERiC LichT
Cooditions for
MatCal
MARTIN counon
Aneuca
NAT. Counce
THE WHITE HOUSE
WASHINGTON
Date: June 17, 1991
FOR:
GOVERNOR SUNUNU
FROM: ED ROGERS
Action
Your Comment
Let's Talk
XXX FYI
I assume you and the President have
seen this
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
May 21, 1991
The President today announced a series of President's Environment
and Conservation Challenge Awards. The awards are designed to
recognize outstanding individuals, organizations, or groups who
make a substantial contribution to environmental quality.
Leaders who find innovative ways to better manage our nation's
resources, stimulate innovation, improve environmental education,
and create working partnerships merit Presidential recognition.
The President's Challenge Awards will not only recognize
outstanding American citizens or programs, but also establish a
data bank listing model programs for replication. The program
objectives are to promote working partnerships, incorporate
environmental thinking into business decision-making, create
innovative approaches to environmental challenges, and develop an
environmental and conservation ethic in our country.
The Challenge Awards will be presented in four categories:
1) Quality Environmental Management,
2) Partnership,
3) Innovation, and
4) Education and Communication.
A Selection Committee, consisting of leaders in environmental,
conservation, business, academic, and professional fields, will
judge the nominations.
Applications for the award can be obtained from:
President's Environment and
Conservation Challenge Awards
The White House
Council on Environmental Quality
722 Jackson Place, NW
Washington, DC 20503
(202) 395-1154
The awards program is open to all U.S. residents, organizations
and groups. Applications are due by July 19, 1991. Winners will
be announced this fall at a White House ceremony and at an awards
symposium.
-more-
The following individuals comprise the Selection Committee for
the President's Challenge Awards program:
John H. Adams, Executive Director of the Natural Resources
Defense Council, Inc., and an Adjunct Professor of Law at New
York University in New York, NY.
Frank A. Bennack, Jr., President and Chief Executive Officer of
The Hearst Corporation in New York, NY.
Michael R. Deland, Chairman of the Council on Environmental
Quality, Executive Office of the President, in Washington, DC.
Gilbert M. Grosvenor, President and Chairman of the Board of the
National Geographic Society in Washington, DC.
Dr. Bernadine Healy, Director of the National Institutes of
Health, U.S. Department of Health and Human Services, in
Bethesda, MD.
Drew Lewis, Chairman and Chief Executive Officer of Union Pacific
Corporation in Bethlehem, PA., and Chairman of The Business
Roundtable in New York, NY.
Dr. Joseph T. Ling, an internationally recognized expert in
environmental management, and Chairman of the American Institute
for Pollution Prevention in St. Paul, MN.
Jack Lorenz, Executive Director of the Izaak Walton League of
America in Arlington, VA.
Dr. Thomas E. Lovejoy, Assistant Secretary for External Affairs
at the Smithsonian Institute in Washington, DC.
J. Michael McCloskey, Chairman of the Sierra Club in Washington,
DC, and an Adjunct Professor of Public Policy at the University
of Michigan.
Senator Gaylord Nelson, former U.S. Senator from Wisconsin and
Counselor of the Wilderness Society in Washington, DC.
David Packard, founder of the Foundation for the Malcolm Baldrige
National Quality Award and Chairman of the Hewlett Packard
Company in Palo Alto, CA.
Sumner Pingree, Chairman of the Board of the Chesapeake Bay
Foundation in Annapolis, MD, and Vice President of the Global
Environment Fund in Washington, DC.
-more-
Dr. Frank Press, President of the National Academy of Sciences in
Washington, DC.
David Rockefeller, Jr., Chairman of the Rockefeller Brothers
Fund in New York, NY.
Senator Robert T. Stafford, former U.S. Senator from Vermont and
former chairman of the Senate Environmental and Public Works
Committee, from Rutland, VT.
Franklin A. Thomas, President of The Ford Foundation in New York,
NY.
Dr. Keith Thompson, President of the Philadelphia Academy of
Natural Sciences in Philadelphia, PA.
Russell E. Train, Chairman of the Board of Directors of the World
Wildlife Fund in Washington, DC.
Joanna D. Underwood, Founder and President of INFORM, Inc., in
New York, NY.
James W. Whittaker, first American to climb Mt. Everest and
consultant, lecturer, and outwear designer and manufacturer in
Port Townsend, WA.
# # #
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
May 21, 1991
PRESIDENT'S ENVIRONMENT AND CONSERVATION CHALLENGE AWARDS
FACT SHEET
The President's Environment and Conservation Challenge Awards are
designed to recognize and encourage innovative solutions to
environmental concerns.
APPLICATION PROCESS: Nominations are open to all U.S. residents,
organizations and groups, including businesses, non-profit
organizations, educators, communicators and state and local
government agencies. Candidates will submit applications to the
Council on Environmental Quality through an open nomination
process. Environmental, professional, business, education, and
media organizations are encouraged to submit the names of
suitable candidates.
ANNOUNCEMENT: The President's Challenge Awards will be presented
annually at a White House ceremony. In addition, an awards
symposium will highlight the winning programs. Up to three
awards will be presented in the following categories:
1) QUALITY ENVIRONMENTAL MANAGEMENT AWARDS: Emphasis will
be placed on the incorporation of environmental thinking
into sound management decisions and practices.
2) PARTNERSHIP AWARDS: Emphasis will be placed on
innovative and successful coalition building efforts toward
environmental quality enhancement.
3) INNOVATION AWARDS: Emphasis will be placed on innovative
technology, programs, or processes that demonstrate unusual
vision, creativity, or "environmental entrepreneurship".
4) EDUCATION and COMMUNICATIONS AWARDS: Emphasis will be
placed on educational programs that contribute to the
development of a conservation and environmental ethic.
Presidential Citations will be given to a select group of
finalists who demonstrate notable or unique achievements, but
were not designated as award winners. This group of finalists
will also participate in the awards symposium.
-more-
ORGANIZATION: A group of organizations known as the Awards
Program Partners will contribute resources and expertise to the
implementation and promotion of the President's Challenge Awards
program. They include:
*
Council on Environmental Quality -- has overall
responsibility for managing the awards program as part
of the Executive Office of the President.
*
National Geographic Society -- a non-profit
scientific and educational organization that
supports exploration and research projects
worldwide.
*
The Hearst Corporation -- a communications firm
involved in publishing and broadcasting, and in
the operation of the Good Housekeeping Institute.
*
The Business Roundtable -- an association of chief
executive officers who examine public policy issues to
reflect sound economic and social principles.
*
World Wildlife Fund -- a conservation organization
working worldwide to preserve wildlife and nature,
and promote wise and balanced use of natural
resources.
SELECTION PROCESS: The Awards Program Partners and a Selection
Committee, consisting of leaders in environmental, conservation,
business, academic, and professional fields, will judge the
nominations. The U.S. Environmental Protection Agency and the
Department of Justice will also be consulted on technical and
legal issues.
HOW TO APPLY: Application forms may be obtained from:
President's Environment and
Conservation Challenge Awards
The White House
Council on Environmental Quality
722 Jackson Place, NW
Washington, DC, 20503
Phone: (202) 395-1154
Three copies of completed applications should be submitted by
July 19, 1991. Winners will be notified in Fall 1991. Winners
will work with the President's Commission on Environmental
Quality to help replicate successful programs nationwide.
# # #
Federal Register / Vol. 56, No. 100 / Thursday, May 23, 1991 / Presidential Documents
23645
Presidential Documents
Executive Order 12761 of May 21, 1991
Establishment of the President's Environment and Conserva-
tion Challenge Awards
By the authority vested in me as President by the Constitution and the laws of
the United States of America, and in order to establish, in accordance with the
goals and purposes of the National Environmental Policy Act of 1969, as
amended (42 U.Ş.C. 4321 et seq.), the Environmental Quality Improvement Act
of 1970, as amended (42 U.S.C. 4371 et seq.), and the National Environmental
Education Act, Public Law 101-619, 104 Stat. 3325 (1990), an awards program
to raise environmental awareness and to recognize outstanding achievements
in the United States and in its territories in the areas of conservation and
environmental protection by both the public and private sectors, it is hereby
ordered as follows:
Section 1. Establishment. The President's Environment and Conservation
Challenge Awards program is established for the purposes of recognizing
outstanding environmental achievements by U.S. citizens, enterprises, or pro-
grams; providing an incentive for environmental accomplishment; promoting
cooperative partnerships between diverse groups working together to achieve
common environmental goals; and identifying successful environmental pro-
grams that can be replicated.
Sec. 2. Administration. (a) The Council on Environmental Quality, with the
assistance of the President's Commission on Environmental Quality, shall
organize, manage, and administer the awards program, including the develop-
ment of selection criteria, the nomination of eligible individuals to receive the
award, and the selection of award recipients.
(b) Any expenses of the program shall be paid from funds available for the
expenses of the Council on Environmental Quality.
Sec. 3. Awards. (a) Up to three awards in each of the following four categories
shall be made annually to eligible individuals, organizations, groups, or
entities:
(i) Quality Environmental Management Awards (incorporation of environ-
mental concerns into management decisions and practices);
(ii) Partnership Awards (successful coalition building efforts):
(iii) Innovation Awards (innovative technology programs, products, or proc-
esses): and
(iv) Education and Communication Awards (education and information
programs contributing to the development of an ethic fostering conservation
and environmental protection).
(b) Presidential citations shall be given to eligible program finalists who
demonstrate notable or unique achievements, but who are not selected to
receive awards.
Sec. 4. Eligibility. Only residents of the United States and organizations,
groups, or entities doing business in the United States are eligible to receive
an award under this program. An award under this program shall be given
only for achievements in the United States or its territories. Organizations,
groups, or entities may be profit or nonprofit, public or private entities.
23646 Federal Register / Vol. 56, No. 100 / Thursday. May 23, 1991 / Presidential Documents
Sec. 5. Information System. The Council on Environmental Quality shall
establish and maintain a data bank with information about award nominees
to catalogue and publicize model conservation or environmental protection
programs which could be replicated.
THE WHITE HOUSE,
ay Bush
May 21. 1991.
[FR Doc. 91-12460
Filed 5-21-91: 4:34 pm|
Billing code 3195-01-M
THE WHITE HOUSE
WASHINGTON
Date:
June 17, 1991
FOR:
GOVERNOR SUNUNU
FROM: ED ROGERS
Action
Your Comment
Let's Talk
XX
FYI
Interesting.
The Wall Street Journal -- May 8, 1991
Riches to Rags: The California Budget Disaster
By STEVEN A. MERKSAMER
ways and mass transit were pushed to the
ture began to inventory their options for
pre-existing programs funded according to
In a plummeting of economic fortunes
limits. Health and welfare agencies saw
responding to the growing fiscal emer-
pre-existing formulas regardless of current
rivaled only by Donald Trump, California
massive increases in their caseloads, as
gency. they ran headlong into the major
need or priorities.
has found itself facing a projected budget
Californians, both existing and new,
public policy mistake of the 1980s: the near
These constraints, combined with the
deficit of $13 billion, an amount larger than
learned that California provided among the
complete loss of fiscal flexibility caused by
mandatory COLAS mentioned earlier, give
the general-fund budgets of 47 of the 50
highest level of welfare benefits in the na-
ballot-box budgeting.
California a budgetary process in which
states.
tion, and covered a broad range of expen-
Ballot-box budgeting took two major
well over half of the revenues are precom-
How could this happen to a state that
sive medical services. Schools were faced
forms. First, statutory or constitutional
mitted. No one can captain a ship of state
just four years earlier had rebated $1 bil-
with vast numbers of new students and in-
mandates protect programs from budget-
through economic storms when the rudder
lion in excess tax revenues to its citizens,
creased educational needs. Public demand
ary reductions. In 1988, for example,
barely moves. Yet that is the task that
and afterward still boasted of a $1.3 billion
for stiffer prosecution of criminals resulted
voters passed Proposition 98. which re-
lies before Gov. Wilson and the California
budget surplus and a triple-A bond rating?
in a 250% increase in California's prison
quires that a little more than 40% of each
Legislature today. There is particular
Like The Donald, California and other
population between 1981 and 1990.
year's state revenues be appropriated for
irony in the fact that many of the initia-
states have been seriously affected by the
While the cost of public programs grew
K-14 education, unless the proposition is
tives to set up pet projects and special
recession: however. in the past several
sharply. the California economy was boom-
suspended by two-thirds vote of the Legis-
funds were led by these same legislators.
years. California made fundamental mis-
ing too. The economic boom. however, had
lature (which the Legislature is not willing
The California experience underscores
takes in public policy that have turned eco-
both good and bad aspects. It produced
to do at this time 1. Thus, despite Califor-
two major lessons for other states. First,
nomic misfortune into a fiscal catastrophe.
healthy public revenues, making it possible
nia's current woes, the state still must put
instead of accepting the number and scope
By learning from California's mistakes,
to keep pace with the growing expendi-
about 40% of every existing budget dollar
of government programs as a given and
other states may avoid "the California ex.
tures without massive tax increases. But it
and every new dollar raised through new
debating how to raise the revenue each
perience."
also allowed the Legislature to avoid set-
taxes into education. This occurred despite
year to fund them. governors and legisla-
It is also important to emphasize what
ting spending priorities and arriving at a
the strong opposition and repeated public
tors should start on the spending side of
did not cause California's deficit. Some of
consensus about the appropriate level for
warnings of Mr. Deukmejian. (He was able
the ledger and examine each program for
ficials blame Proposition 13. the constitu-
government services. Instead, the annual
to blue-pencil out $5 billion to $6 billion in
its continued viability in light of changing
tional limitation on local property taxes
budgeting process fell into a dangerous
general-fund appropriations in his eight-
priorities and needs. This is not an easy
that passed in 1978. They claim that reve-
pattern: Take existing government pro-
year term.
task, for it forces lawmakers to confront
nue-starved local governments have be-
grams as a base, increase them for case-
Second, the budget contains numerous
and reconcile their differing views of the
come almost completely dependent on the
load growth and then find the necessary
"special funds" revenues generated by a
role of government, what government
state for financial support, and that the
funding from year-to-year. Automatic cost-
specific tax or fee that can be spent only
should provide and what government's pri-
state has finally cracked under the burden.
of-living-adjustments (COLAs) were built
for specific programs. During the 1970s
orities should be. But where public policy
The facts paint a different picture. Since
into many of the most expensive health
and 1980s, these proliferated as single-in-
is concerned, the path of least resistance is
1978. local-source revenues have almost
and welfare programs, which could be re-
terest groups sought to fund pet projects
rarely the correct one.
doubled. largely because local govern-
moved only with a politically impossible
and insulate them from the regular budget-
Tax increases have to be part of a
ments have tapped a variety of new reve-
two-thirds vote of the Legislature, as then-
ing and appropriations process. Special
short-term solution. But without fiscal flex-
nue sources, ranging from utility user
Gov. George Deukmejian found.
funds, ranging from taxes on tobacco to
ibility, raising taxes will ultimately make
taxes to hotel occupancy taxes.
In so doing, a time bomb was planted in
hazardous waste fees, annually produce in
the problem only worse.
If Proposition 13 isn't to blame, what
the state budget. When the recession hit in
excess of $11 billion, none of which is cur-
Second, lawmakers must resist efforts
is? The failure of California's elected offi-
the summer of 1990, the bomb went off.
rently available to assist in saving high-
to create and expand ballot-box budgeting
cials to confront the need for spending pri-
Tax collections fell dramatically, $138 mil-
priority programs from fiscal disaster. The
in their states. Being unable to transfer
orities, thus creating a policy vacuum in
lion below projected revenues in the first
best example of such a special fund is the
revenues from an obscure board or com-
which single-issue interests were allowed
quarter of the current fiscal year alone.
state lottery, whose funds are constitution-
mission to keep an emergency room open
to set the state's spending priorities
Unemployment and welfare caseloads shot
ally allocated to K-14 education.
is only slightly less frustrating than cap-
through "ballot-box budgeting."
up drastically, draining the treasury at a
Not a dime of special fund money can
taining the Titanic, seeing the iceberg. and
While this was occurring. the state's
faster rate. No longer could the structural
be spent to assist in solving the devastat-
finding that even the deck chairs are
population boomed. The massive influx of
imbalance in the budget be swept under
ing effects of a severe winter freeze and a
nailed down.
new Californians created huge increases in
the rug of economic growth.
five-year drought on agriculture. Instead,
Mr. Merksamer, a Sacramento based
demands for public services. Streets. high-
When Gov. Pete Wilson and the Legisla-
all of these special funds are dedicated to
attorney, was chief of staff to Gov. George
Deukmejian from 1983 to 1987.
THE WHITE HOUSE
WASHINGTON
Date: June 10, 1991
FOR:
GOVERNOR SUNUNU
FROM: ED ROGERS
Action
Your Comment
Let's Talk
XXX FYI
U.S. Department of
Assistant Secretary
400 Seventh St., S.W.
Transportation
Washington, D.C. 20590
Office of the Secretary
June 4, 1991
of Transportation
MEMORANDUM FOR: The Honorable Edward Rogers
Deputy Assistant to the President and
Executive Assistant to the Chief of Staff
The White House
SUBJECT: Skinner Trip to North Dakota
Governor Sununu called Secretary Skinner on Thursday last week
regarding our upcoming trip to North Dakota. The Governor
reported that he was hearing some complaints that we were possibly
playing into Senator Kent Conrad's reelection effort. The
Secretary put me on the phone at one point to explain how we were
attempting to avoid being used in that respect. The Governor
asked me to close the loop with Phil Gramm's folks at the
Senatorial Committee.
The purpose of this memo is to let you know that I did, in fact,
talk to Paul Curcio, Political Services Director at the Committee
and to report on our trip, its purpose and plans.
For your information, the Secretary is visiting the University of
North Dakota, Center for Aerospace Science. The Department of
Transportation/Federal Aviation Administration has a long standing
relationship with the Center. The school issued the invitation
and is our host.
In addition to touring school facilities, the Secretary will
participate in an "open forum" to whom the school has invited a
host of political, education, and transportation leaders. We are
told that both Senators Burdick and Conrad, Congressman Dorgan and
Governor Sinner are planning to attend. We have insisted that
Republican leaders in the State be invited, as well. (Keep in
mind that Burdick is Chairman of the Senate Environment and Public
Works Committee - the committee we have to work with this year on
the Highway Bill.)
-2-
We are insisting that the Secretary appear only with university
officials and we will work to insure that any press availability
he has is also limited.
The Secretary's advance and travelling staff are fully sensitized
to the concerns being expressed. We cannot disinvite elected
federal officials from participating. We will, however, work to
minimize joint appearances and avoid blatantly political activity.
fale
Galen J. Reser
THE WHITE HOUSE
WASHINGTON
DATE: June 3, 1991
TO:
GOVERNOR SUNUNU
FROM:
ED ROGERS
The attached comes from a friend of Rock
Schnabel's in California - who wishes to
remain anonymous.
FYI.
Ed:
Some random thoughts on the "California Scene":
"Disarray continues and Wilson deficit reduction is way behind
schedule. Team 100/California have definitely decided to
orchestrate a takeover by installing (and paying for) an
Executive Director and a Chief Financial Officer - all of this
with Wilson's blessing. Norm Cummings of RNC was offered E.D.
job, but turned it down yesterday. CRP Chairman, Jim Dignan has
not been told all of these "facts of life" as yet, so it could
get a little bloody. Dignan is being accused of the "arrogance
of ignorance" (not a bad line) with all his talk of waging war on
the Governor's office. Wilson and corporate California have had
enough and seek castration.
One of the final straws was the CRP scheduling a fundraiser with
Jack Kemp in L.A. the same night (May 30) as a Wilson dinner to
occur 5 blocks away. Needless to say, Wilson's is a sell-out,
while Kemp continues to keep them away in droves - at last count,
the Party had raised $25 off the Kemp invitation. But Dignan's
thumbing his nose at Wilson rankles.
Despite evidence to the contrary, Dignan maintains that he was
able to stop President Bush from coming to California for John
Seymour on June 14. The Party obviously thought the President
should be raising money for them in an off-election year and
talked to everybody they could think of to get him (they did have
a point). Seymour's camp says the President's health was the
reason for the postponement till September. Whatever the real
reasons, open warfare between CRP and Wilson/Seymour is more
imminent daily."
Wilson/Bush Re-Elect
"Only news here seems to be that George Gorton (Wilson's campaign
manager) feels he has a "lock" on managing the Bush Re-elect
California effort. That is supposed to be his price for agreeing
to do Wilson's political chores now that Dep. Chief of Staff
Marty Wilson is leaving July 1 to join Spencer-Roberts. Actually
it's Stu's daughter, Karen, and Marty who will open a Sacramento
office to do lobbying and some campaigns. Whether the Gorton
scenario has the White House's blessing is another matter."
Team 100/Team California
"Team 100 members are chafing at the bit to split from Team
California. They resent having to be surrounded by people who
only pay $25,000. Everyone knew that next year, when they have
to come up with another $100,000 would be a natural time to
separate "the men from the boys" but Bren, Murdock, and others
want it to happen now. RNC gave it's approval this weekend, with
the plan to make Team California purely a state activity."
-1-
U.S. Senate - Seymour Seat
"Seymour continues to sputter. They've had no luck deciding on a
campaign manager and people are getting nervous. He's raised
only $300,000 since the first of the year - that's against his
'91 budget of wanting to raise $5 million! Potential exists that
as of close of filing June 30, Seymour may be behind Dannemeyer
in dollars in the bank. Incredible. Dannemeyer is unable to put
a professional team together, either. But his direct mail is
having an impact. Also, evangelicals, right to lifers, and gun
owners are starting to talk about dropping all other individual
efforts for the purpose of defeating Seymour and embarrassing
Wilson. They won't succeed in beating Seymour in the Primary,
but could wound him severely for November.
Meanwhile, Dianne Feinstein continues to placidly raise money and
keep Demo opposition at bay. Only Gray Davis still looms as
possible Primary challenge."
U.S. Senate - Cranston Seat
"George Shultz is putting all his effort behind Congressman
Campbell. One funny story has Lod Cook agreeing with ARCO staff
not to endorse any candidate, then caving in when telephoned by
Shultz. Supposedly, Cook said they could use his name privately,
but he wouldn't be able to help with the fundraising. Next day,
the Wall Street Journal has a full page Campbell ad with Lod's
name prominently displayed. Red-faced ARCO officials even called
3
Sununu to try and explain the mistake. Evidently, Sununu has been
encouraging everyone to remain neutral and was using ARCO as an
example.
Bruce Herschensohn is not gelling this time it seems. His latest
campaign plank is to abolish the Environmental Protection Agency.
As you might imagine, that's not necessarily the hottest issue he
could find here.
Dornan just dropped 400,000 pieces of mail to test the waters.
Dreier has Roger Ailes, Charlie Black, (and rumor has it, part-
time girlfriend Doro Bush) encouraging his entry into the race.
I think the odds are less than 50/50 that David will actually get
in.
As to the Democrats - Mel Levine may have raised 4 million by
June 30, which would be intimidating indeed. Matsui is
benefitting from Asian contributors throughout the country, and
will have at least 1.6 to 2 million. Jerry Brown and Leo
McCarthy may be hurt by labor's decision not to get involved in
the Primary. Barbara Boxer is having internal campaign staff
problems."
THE WHITE HOUSE
WASHINGTON
Date: June 3, 1991
FOR:
GOVERNOR SUNUNU
FROM: ED ROGERS
Action
Your Comment
Let's Talk
XXX FYI
AL SIMPSON
WYOMING
Whip Notice
United States Senate
OFFICE OF
THE ASSISTANT MAJORITY LEADER
WASHINGTON, DC 20510-7022
May 30, 1991
Dear Colleague:
The Senate schedule for the week is as follows:
Monday, June 3:
The Senate will convene at 2 pm. There will be a period
for morning business not to extend beyond 3:00. At 3:00, the
Senate will begin consideration of S. 173, Telecommunications
Equipment Research and Manufacturing Competition Act. There
will be no roll call votes on Monday.
Tuesday, June 4:
The convening hour has not yet been announced. It is
anticipated that consideration of S. 173 will continue until
final disposition. Roll call votes can be expected as early
as Tuesday morning. At 12:30, the Senate will recess until
2:15 to accommodate party policy lunches.
Balance of the week:
The Majority Leader has announced that the following
constitutes a non-exclusive listing of legislation that may
be considered by the Senate in June: S. 965, the Surface
Transportation Efficiency Act; S. 250, the Motor Voter bill;
S. 12, the Cable Television Consumer Protection Act; S. 596,
the Federal Facilities Act; S. 341, the National Energy
Security Act; S. 279, the CAFE bill, S. 618, the Crime bill;
S. 2, the Education Improvement Act; S. 5, the Parental Leave
legislation; and any available appropriations bill. The
Majority Leader has advised Senators that from June 3 to June
28, roll call votes will be possible on Mondays after 5 pm.
Roll call votes may occur on Tuesdays and Wednesdays until
7 pm. On Thurdays, the Senate may be in late, with evening
roll call votes. Roll call votes may occur prior to 3 pm on
Fridays. If you have questions, please call 4-2708.
Al Simpson
Assistant Republican Leader
THE WHITE HOUSE
WASHINGTON
Date: June 3, 1991
FOR:
GOVERNOR SUNUNU
FROM:
ED ROGERS
Action
Your Comment
Let's Talk
XXX FYI
MAY-31-91 FRI 15:08 KEENE SHIRLEY & HSSO
7036847642
P.02
Taxpayers Alliance Ballaut Of Communism
MAY 30, 1991
Krown
MEMORANDUM
FROM:
HOWARD PHILLIPS
TAXPAYERS ALLIANCE AGAINST THE BAILOUT OF COMMUNISM
SUBJECT:
the beginning of the Iraq Mari President Bush has benefitted of
Since from a unilateral ceasefire of critical comment on the part many
conservatives.
the absence of visible, focused opposition, the President has
moved In incrementally and relentlessly to implement a policy of U.S.
support for the Communist regimes on the Suviet Union and Red China.
Without Communist strength in the Congress has virtually collapsed.
coordinated grass roots opposition to these policies, For anti-
example, on May 15, out of 43 Republican Senators, only 8 voted
Mikhail against Gorbachev, the KGB, the Red Army, and the Communist Party
President Bush's proposal for a $1.5 billion grain subsidy of to
the Soviet Union.
The Mikhail Gorbachev to the G-7 economic summit, an additional waiver of
President has more in store for us: the possible invitation of
the Jackson-Vanik Amendment for the USSR, extended MFN ctatus for Red
China, Export-Import Bank credits and loan guarantees for the Soviet
Union, associate membership in the World Bank and observer status in
GATT for Moscow, a liberalized policy of technology transfers, invol-
vement of Soviet military leaders in NATO strategy discussions,
dismantlement of systems providing early warning against Soviet
missile attacks, a 25 percent five-year reduction in U.S. military
strength and even more.
I am just back from a nine-day visit to Poland, Lithuania, Latvia,
and Estonia. The unanimous plea of those with whom our 40-person
group met was, "Do not rescue but Communist jailkeepers. Let the
Soviet system collapse."
Contrary to the popular wisdom, the money we send to Moscow does not
go down the drain. It reinforces the authority of those who hold the
levers of power.
with a 32-to-1 official ruble-to dollar exchange rate, and with
Soviet residents typically earning only a few hundred rubles per
month, every $1.5 billion WE send to the Kremlin is the equivalent of
$48 billion-plus of political and military leverage.
MAY-31-91 FRT 15:09 KEENE SHIRI FY ?. 0880
7036817613
P.AZ
In extending MFN to the Red Chinese, the Bush Administration is
ignoring a clear reçord 02 alave-luber production and giving Beiling
a multi-billion dollar trade advantage over American workers.
It's time for those who disagree with these policies to take action.
TO that end, I and organizing 3 Taxpayers Alliance Against the Bailout
of Communism, and would be grateful for your participation, either
organizationally or individually I encourage you to sign your name
to the statement below and FAX it back to the Coalition Coordinator
Greg Mueller at (703) 683-1703. If you or your organization wish to
become a co-sponsor of the Coalition, a $250 check made payable to
The Conservative Caucus, Inc. would be appreciated. Whether or not
you can send a check, please sign in as an endorser of the statement.
Intended Coalition activities include the following:
(1) Participation in a 1PM Monday, June 3, news conference at the
National Press Club, hosted by the U.S. Business and Indue.
trial Council. (You are invited to attend and bring a
prepared statement.)
(2) A Tuesday, June 11, "Teach-In Against the Bailout of
Communism," to be conducted in the hall of the Joseph Story
Society at 107 Second Street, NE, in Washington, D.C. (You or
a representative of your organization are encouraged to
participate in the teach-in
(3) Involvement of radio talk show hosts across America in
debating the bailout of Communism issue (again, your
willingness to participate in such programs is encouraged).
(4) A campaign to influence the 1992 Democratic and Republican
Party platforms to sppese any and all bailouts of Communism.
Thank you very much for your consideration.
Again, if you are able to become 1 co-sponsor of the Alliance, pleaco
send your $250 check to my attention, care of The Conservative
Caucus, 450 Maple Avenue East, Vienna, Virginia 22180. But, in any
event, please become a co-signer df the following statement. Many
thanks.
MAY-31-91 FRI 15:10 KEENE SHIRLEY & ASSO
7036847642
P.04
Taxpayers Alliance Against Th Ballout Of Communism
STATEMENT OF OPPOSITION TO MOST-FAVORED-NATION STATUS
AND TECHNOLOGICAL AND ECONOMIC AID FOR THE
SOVIET UNION AND COMMUNIST CHINA
For many years Soviet dissidents joked that when the USSR finally collapsed, the United
States would send in the tanks to restore the communist government.
They were almost right. We are not sending in the tanks, but we are helping pay for them.
American taxpayers' money is being used to prop up what's left of the regimes of Stalin for
and Mao. Today Supported hy our hard-earned tax dollars, the communists work to crush the campaign
liberty in Communist China and in the remainder of the Soviet Empire.
From the Baltics to Beijing, brave freetions fighters are standing up in the likes of Gorbachev
and Deng. but their efforts are undercut by 3 U.S. government that supports the wrong side.
The people of Communist China have shown their willingness to stand in front of tanks, Soviet if
to secure the freedom we take to: granted. Ab Andrei Sakharov noted, aid to the of
necessary, Union without real reform "only serves to prop up 4 failed system and to delay the advent
democracy."
We are presented with a choice between the current rulers and those who will rule in the
coming and the butchers of Tianamen Square, or we an side with those whose touchstones are the
democracies -- between the oppressers and the oppressed. We can side with the Black Declaration Berets
of Independence and the Bill of Rights.
The debate over continued aid to contriumst governments takes many forms -- political,
economic, and moral. But only one question really matters: Whose side are we on?
I agree with the above Statement of Opposition and hereby support the efforts of the Taxpayers
Alliance Against the Bailout of Communism
Signed
THE WHITE HOUSE
WASHINGTON
June 3, 1991
MEMORANDUM FOR GOVERNOR SUNUNU
ROGER PORTER
FROM:
ED ROGERS
SUBJECT:
SPRUANCE COMPANY/SUPERFUND
This is sad - if it's true.
Although I'm sure this account is one-
sided, Mr. Cox does make some pretty good
points.
I wish we could help.
FYI.
THE GILBERT SPRUANCE
Manufacturers of
GS
Wood and Metal
COMPANY
Finishing Products
Richmond and Tioga Streets
Phone (215) 739-6172
Philadelphia, PA 19134
Fax No (215) 739-5624
May 22, 1991
The Honorable Jerome B. Simandle
United States Magistrate Judge
United States District Court
District of New Jersey
United States Court House
Camden, NJ 08101
Dear Your Honor:
Thank you for your kind letter of May 10, 1991, giving
us at The Gilbert Spruance Company a 40 day extension to obtain
new counsel in reference to the Helen Kramer Landfill, et al.
I'm enclosing for you recent correspondence about
Spruance's situation with reference to Superfund.
For your information, we've spent over $300,000 in
legal fees defending ourselves in Superfund since 1985 with
nothing to show for it, except 3 complete file cabinets worth of
papers, being added to weekly.
The Superfund situation for Spruance is a "fiasco" and
puts us on the verge of extinction.
We've been in business since 1906. My grandfather and
father ran our company for over 35 years, and we're being
"bludgeoned" by a process which, in my opinion, violates due
process, and is "ex post facto law". we're being told that how
we disposed of waste up to 1978 was illegal and constitutes a
violation 06 resources in our country. We had no idea that what
we were doing was incorrect, our hauler had correct papers at the
time, and now we're being told that what the hauler did was
wrong, and because we used this hauler, we're guilty by
association, and I repeat that this is not fair. If we were
going to dump illegally, we certainly would not have kept
records, and maintained a business relationship with our hauler,
Marvin Jonas. For Marvin Jonas to implicate us, through
Continued.
spruance
The Honorable Jerome B. Simandle
Page 2
United States Magistrate Judge
United States District Court
May 22, 1991
testimony, when he was brought back from Costa Rica, under
implied immunity for part 06 his sins smacks of "entrapment" and
"reckless abuse" of the Superfund Law. I'm not a lawyer, but
that's how I feel, and I'm tired to trying to decipher legalese
language from lawyers at $150 to $200 per hour.
Furthermore, liaison counsels, ask for a $20,000 ante
to find out we owe $150, 000 for the sites in question, to clean
up our "de minimus share". Our de minimus share has carried with
it as much as $20 per gallon administrative costs for all
participants on the "gravy train". This is ridiculous, we could
have already paid our country $300, 000 toward clean-up of these
sights, but for some reason justice doesn't want to work this
way.
For your information, I've been an active participant
in Earth Day, and attended the very first one in 1970; yes, I was
one of those people who felt then, and feels now that our
environment must be protected. So why "manhandle" our small
company with Superfund bureaucracy and red tape that inhibits our
ability to run a smaller family owned industrial coatings
company?
For Helen Kramer defense I need new counsel, you say
lafter my suggestion), but upon reflection why does Spruance need
to spend any more legal fees? I've been running Spruance as "a
debtor in possession" since April 1990, and just have not filed
for a chapter yet.
I6 a judgement is forthcoming against for something we
feel is unjust, I will fight it without lawyers who tell us "what
we can't do, who we can't do it with, and where they won't go" at
$150 to $200 per hour. I've not reached the stage in my life
where I'll "lie down" and let us become a victim of what I feel
is "ex post facto law".
As the late Senator Robert F. Kennedy said "anytime
anyone stands up for an injustice, a ripple of hope goes
throughout the entire world", I believe in that quote, and admire
the intent and energy this quote signifies to me.
Continued.
The Honorable Jerome B. Simandle
Page 3
United States Magistrate Judge
United States District Court
May 22, 1991
If Spruance loses, a set of keys can be made for you
all to take over our company-entangled in "Superfund garbage",
fighting a recession in its marketplace, and trying to make our
environment, through our services and products, a better place
for all concerned.
You'll also note that in my copied correspondence, I'm
suggesting a win-win method for all concerned as it relates to
Superfund.
We await your advice.
Very Rovertment. truly yours,
Robert M. Cox, Jr.
President and CEO
RMC, Jr/rs
Enclosures
cc: Kristin Phillips, Lautenberg Aid
Gene Peters, Legislative Assistant
Senator Bradley
Senator Spector
Governor Casey
Representative Coughlin
Representative Borski
Honorable Edward Rogers, Deputy Ass't. to President
Thomas Graves, Esq., National Paint & Coatings Assn.
Roland Morris, Esquire
Thomas Mullaney, Jr., Esquire
Michael Delaurentis, Esquire
THE GILBERT SPROANCE
Manufacturers of
Wood and Metal
COMPANY
Finishing Products
Richmond and Tioga Streets
Phone 12'5 739-6172
Philadelphia DA 19:34
Fax No 2.5 739-5624
September 27, 1990
Ms. Kristin Phillips
Special Projects Assistant
717 Hart Senate office Building
Washington, D.C. 20510
Dear Ms. Phillips:
This is a letter from a paint executive, who has seen
his company "whip sawed" and abused by the Superfund Juggernaut.
We have been in business since 1906, employ 50-plus
people, and are being "bled" by the Superfund process, that
requires money, time, and an extreme amount of energy to stay
abreast of the process.
We are involved in seven Superfund sites, primarily due
to our connection with Jonas, a hauler in the 60's and 70's, who
took our wastes to various landfills in New Jersey. We felt we
were doing the correct thing at the time, and we find ourselves
"embroiled" in bureaucratic legal maneuvers who have extracted
over $300, in legal fees, since 1986.
We are manufacturers 06 industrial coatings, are in the
midst 06 a home building recession which hurts our volume, and
the ability for our customers to sell their furniture or kitchen
cabinets. Compounding this concern, is the "plethra" 06 legal
documents coming in daily involving Superfund.
06 the seven sites we've been involved in, we've
settled one--Lipari Site for $180, 000, well over our deminimus
contribution based upon allocation averages. Insurance picked up
the $180,000, 000, then declined to contribute clean-up or defense
costs in any other sites. They filed in Pennsylvania, we filed
in New Jersey and lost. Since then, we've been "running naked"
without any insurance coverage, and we're tiered with Texaco in
the GEMS Superfund site for $150, 000 with the threat of treble
damages. Again, well over the allocated deminimus average based
upon our contribution 06 approximately .023%. we're now facing
spruance FINISHES
September 27, 1990
Page 2
3rd party suits as well, and settled one for $20,000 with others
still pending.
No bank will lend us any working capitol based upon the
EPA liability hanging over us, and our inability to lower all of
our costs to remain competitive.
At meetings I've had with some of your assistants,
they've requested us to pursue a creative financing approach to
our Superfund problem. with lawyer fees, and no insurance back
up, I took our story to the EPA in New York and spoke to Jim
Rooney and his staff. Their suggestion after hearing our story
was to try and settle this outside the liasion counsels, and not
let our insurance company "o66 the hook".
The amount of Spruance gallons involved in the seven
sites in New Jersey, is approximately 200, 000 gallons. I6 from a
deminimus point of view, the thought is charge based dollars per
gallon, we would suggest a split two ways, 1/2 Spruance, 1/2
Insurance. We feel that $5.00 per gallon is a number which would
put our Superfund liability at $1,000,000. Certainly a number
that puts us out oó business without some help.
If we agree to pay 1/2 at Spruance, we would suggest a
note held by the State of New Jersey to be paid over a specified
time period at an interest rate of 0%. Then we could pay over
time out of our profits which we feel would be a "win-win"
situation for everyone.
we feel like Rhode Island during the First
Constitutional Convention, trying to be heard, and trying to do
the right thing in a pro-active manner. we've had little success
other than the continual "bombardment" of lawyer correspondence,
and U.S. correspondence from the EPA suing us for $1,200,00 as
was noted in the Helen Kramer Superfund site. This is most
distracting. Our company's sales in good years is approximately
$5,000,000, and Superfund suits in the above mentioned magnitude,
defeats the very purpose for trying to stay in business.
we're asking for help here. We need your political
influence to try and achieve a successful resolution to this
September 27, 1990
Page 3
issue. We are being "whipsawed" by insurance carriers, lawyers,
and we're getting punished unnecessarily by a process that was
designed to clean up the environment, now putting our company on
the edge of extinction. We are not able to totally focus on the
fun part of running a business.
we're standing up for an injustice here, and need some
of your kind help and direction, to try and make this process a
successful "win-win" situation for us at Spruance. We need to
understand what our liability for Superfund is, how to creatively
work with the government on this problem, and assess a de minimus
cost. We need to stop paying excessive attorney bees, and being
forced to pursue insurance carriers at our own expense.
Please give us some help and direction.
Very truly yours,
Robert M. Cox, Jr.
President and CEO
RMC, Jr. /rs
to achieve tast and efrective
cleanup of our environment.
cleanup bill. Users can include major corporations, small
businesses, local governments, hospitals, nursing homes, schools,
even individuals. And it does not matter who caused the harm or
whether they did anything wrong. Superfund's retroactive liability
provision makes parties pay for past actions based on today's
standards.
For example, al 422 sites almost 14,000 parties have been
notified that they could be liable. In turn, many of them are
identifying still others who contributed in some way to the
presence of waste at each site. And since Superfund liability deals
with past waste disposal, the record of users can go back 25, 30 or
even 40 years and can number in the hundreds.
The result? The focus on cleanup has been lost as private and
public parties spend years in difficult but unavoidable negotiations
and litigation, trying to work out agreements that would provide
DANGER
funds for cleanup. At some sites, more money has been spent
resolving complex factual issues than on cleanup itself. This does a
lot for lawyers and consultants, but very little for the environment.
And of course, these costs are eventually passed on to all of us as
NO.TRESPASSING
consumers in higher prices for goods and services. Isn't it time to
stop this wasteful process and get on with cleaning up our
environment?
HAZARDOUS SUBSTANCES PRESENT
At AIG, we think so. There is little to be gained by arguing
over waste disposal that happened long ago. America needs a
system that will promote last and effective cleanup, reduce
unnecessary legal fees, spread the cost of cleanup broadly, and
encourage responsible waste management practices today!
ALARMING LACK
A PROPOSED SOLUTION:
OF PROGRESS IN CLEANUP.
THE NATIONAL ENVIRONMENTAL TRUST FUND.
When Congress enacted the Federal Superfund program in
1980, the goal was to quickly clean up America's most dangerous
To accomplish this, we have proposed creating a National
hazardous waste sites. Congress and many others assumed there
Environmental Trust Fund, similar to the National Highway Trust
would be only a relatively few such sites and that cleanup costs
Fund. Its resources would be used exclusively for cleaning up old
would be limited.
hazardous waste sites. Superfund's tough liability provisions would
Now, after a decade of trying to make Superfund work, it's
still apply for future pollution, as would all other state and federal
clear these assumptions were wrong and that a quick fix was never
environmental laws designed to promote responsible waste
possible. What's wrong with Superfund and why has so little been
management.
accomplished?
One way this fund could be financed would be by adding a
The problem is twolold. First, the real scope of our nation's
separate fee to commercial and industrial insurance premiums in
hazardous waste situation is far greater than Congress anticipated.
the United States. Even a modest assessment, say 2% of premiums
With 1,200 priority sites already identified, growing numbers of
and an equivalent amount for self-insureds, would provide about
sites are being found in every state. The Environmental Protection
$40 billion over the next decade-more than enough to clean up
Agency expects that by the year 2000, there may be as many as
the 1,200 highest-priority sites. Without endless time and money
2,000 priority sites.
spent on legal debates about liability.
With rapidly rising cleanup costs, which now average about
A national advisory board consisting of private individuals,
$25 million per site, the eventual price tag is staggering. According
industry and public officials could be charged with overseeing the
to a top government agency, cleaning up all of America's
program. We also suggest giving consideration to establishing local
hazardous waste sites could take from 30 to 60 years and cost up
technical monitoring committees in each community. These
to $500 billion!
groups of local citizens, representatives of industry and others
A second problem is Superfund's alarming lack of progress in
would work with the Environmental Protection Agency and their
cleanup. A decade and billions of dollars later, fewer than 60 out of
own state on the particular cleanup site-from the very beginning
the 1,200 sites have actually been cleaned up.
of the cleanup effort.
Why? One major reason is Superfund's liability system. It
YOU CAN 11ELP.
requires that cleanup be paid for by establishing liability-who sent
We've waited long enough and spent enough money in the
what waste, how much and where-and then negotiating or
courtrooms. Now it's time for action. A cleaner America should be
litigating with those believed to be responsible. While this sounds
all Americans' shared goal and shared responsibility.
good in theory, it hasn't worked in practice. Instead, the result has
To express your views, or if you would like further information
been delayed cleanup and enormous legal, consulting and other
about AIG's proposed National Environmental Trust Fund, write
costs unrelated to cleanup.
to Mr. M.R. Greenberg, Chairman, American International Group,
COMPOUNDING THE PROBLEMS
Inc., 70 Pine Street, New York, NY 10270.
INSTEAD OF SOLVING TIIEM.
This is because working out who pays and how much for
AIG
World leaders in insurance
cleanup is very difficult. Under Superfund, anyone who simply
used or owned the site at any time could be liable for the entire
and financial services.
THE WHITE HOUSE
WASHINGTON
Date:
May 30, 1991
FOR:
GOVERNOR SUNUNU
FROM: ED ROGERS
Action
Your Comment
Let's Talk
XXX FYI
CC: Chase Untermeyer
6 /Part I/May 3, 1991
VANGUARD
Gov. Wilson Names First
Gay Appointee
by Keith Clark
on April 5, must be con-
Board."
firmed by President Bush.
"I have long been con-
Without much fanfare,
Such confirmations, howev-
cerned with human rights
Gov. Pete Wilson made his
er, are nearly always rou-
issues," Anchor said, "par-
first appointment of an
time:
ticularly as they relate to the
openly gay person in his
During the interview pm-
equitable treatment of all
new administration earlier
cess earlier this year, An-
those who serve in the nat-
this month by nominating
chor had made it clear to
ion's armed services, which
Cliff Anchor to a post on the
Selective Service officials
in the past have perpetrated
Sonoma County Selective
that be is gay.
very shoddy acts upon
Service Standby Board.
In a letter to Anchor, Wil-
blacks, Hispanics, women.
Anchor, 54, is a member of
son wrote, your will-
and currently gays and lesbi-
the Republican Log Cabin
ingness to serve will guaran-
ans."
Club of San Francisco and
tee that your draft-eligible
Selective Service Standby
news contributor with the
neighbors will receive fair
Boards, in each county, do
Bay Area Reporter.
and equitable treatment.'
not function unless activated
A retired lieutenant colonel
Replying to the Governor's
by the President as part of
and former special assistant
nomination, Anchor wrote
the military draft. Their
to the commanding general
back, "I am most bonored
role, then, is evaluating
of the California Army
as an openly gay person to
prospective draftees for
National Guard Anchor's
be nominated by you to the
fitness for military service.
nomination by the Governor
Selective Service Standby
THE WHITE HOUSE
WASHINGTON
May 30, 1991
MEMORANDUM FOR THE CHIEF OF STAFF
FROM:
ED ROGERS
SUBJECT:
TAUZIN MEETING
This afternoon's meeting is to start conditioning the environment
for Congressman Billy Tauzin to change parties:
to encourage Tauzin to be a leader of the Boll Weevil Democrats -
as he wants to be; and
as a potential switcher, he'll be interested in how we're
treating Buddy Roemer.
Although I don't expect it to come up, attached please find some
information on Ricky Bourg's TED device.
REVISION OF THE SEA TURTLE CONSERVATION REGULATIONS
The Department of Commerce, NOAA, NMFS is proposing to
revise the 1987 Sea Turtle Conservation Regulations to
require stricter conservation measures. This revision
will be accomplished through two sets of amendments to
the regulations; one focussing on strengthening
enforcement and compliance, and the other on expanding
the conservation requirements.
Both sets of regulations will be published for public
review and comment. Proposed Enforcement Amendments
will be published in June. Proposed Conservation
Amendments will be published in July.
TESTING OF THE "BOURG DEVICE"
Ricky Bourg's TED device was field evaluated on April 15, 1991 by
a team of NMFS Gear Specialists and Enforcement personnel, and
Coast Guard. Included were Ricky Bourg, Captain Duplantes, Terry
Lyons (from Congressman Tauzin's office), John Watson and Wendy
Taylor (NMFS gear specialists), Bob Stone and Tom Shuler (NMFS
enforcement), and Chris Rodriquez (U. S. Coast Guard). The test.
was conducted on Mr. Bourg's brother-in-law's vessel (CAPTAIN
JAMIE) in 7-10 ft of water off Dulac, LA.
The Bourg TED failed to operate correctly during three out of
three test tows, The buoy failed to pop up despite attempts to
trip it with buckets filled with salt. There appeared to be too
much tension on the tripping mechanism. The NMFS gear
specialists felt that the technical problems probably could be
solved and Mr. Bourg was encouraged to continue to work on the
device.
Reports will be prepared by all test participants. The gear
reports probably will conclude the device could be made to work,
but unless hard evidence is provided showing that the TED works
the certification trial planned for it in August 1991 should be
cancelled. The enforcement reports most likely will strongly
question whether or not the device can be enforced.
Future Actions
Mr. Bourg is refining the design of his device, with assistance
from NMFS gear experts. In June, NMFS will be chartering a
vessel to conduct by-catch research in the Gulf. NMFS has agreed
to field test the Boury device at that time using divers to
observe its performance.
If the device can be shown to function as proposed by Mr. Bourg,
NMFS will test it in August when certification triels are
conducted for a variety of TEDs. The August test date is
predicated on the availability of headstarted turtles from
Galveston, which are used in testing. Assuming the Bourg device
does work as proposed, the central question of enforceability
will still need to be resolved.
200
HIOO
2:60
16/02/50
April 1990
Southeast Regional staff was first contacted by
Mr. Bourg in late April 1990. Mr. Bourg furnished
a rough nketch of his design and his concept was
reviewed by gear specialists, our southeast Region
Chief of Law Enforcement and Legal Counsel.
May 1990
Southeast Regional Staff responded to Mr. Bourg to
inform him that a review of his drawings showed
that the device was not a legitimate alternative
to a turtle excluder device (TED), primarily
because of enforceability.
June 1990
Congressman Tauzin contacted Bill Fritz,
Congressional Affairs, to request testing of the
Bourg Device as a possible TED. Tauzin provided
drawings of the device. Tauzin's request was
forwarded to NMFS.
June 1990
Dr. Fox requested of Southeast Region a formal
review of the Bourg Device based on drawings
provided by Tauzin.
June 1990
Dr. Fox wrote to Mr. Tauzin informing him that we
would review the drawings provided and inform him
of the results.
July 1990
Dr. Fox wrote to Mr. Tauzin informing him that the
Bourg Device was unenforceable as a TED, but that
it might be able to detect large objects.
Enforcement shortcomings were the principal
drawback.
September 1990 Mr. Tauzin meets with Dr. Knauss and Mr. Campbell
to discuss testing/certification of Bourg Device.
commitment to test by NOAA?
Fall-Winter 1990
General hold on all TEDs-related
certifications and regulations with planned
meeting of the TEDs working group.
It was originally planned that this group
would review all proposed gear alternatives
and advise NOAA. The actual role of the
group was eventually much more restricted.
March 1991
Mr. Tauzin's staff member exhibits Bourg Device at
TEDs working group meeting.
March 1991
Southeast Regional office and Center staff
contacted Mr. Bourg to arrange at-sea testing and
evaluation of his device.
April 15, 1991 At-sea evaluation was conducted by NMPS gear
specialists, a NMFS enforcement officer, and a
U.S. Coast Guard Boarding officer. The device
failed to operate (the bouy was not released) in
three out of three tows.
June 1991
NMFS has offered to evaluate the device again
during by-catch research cruises. Based on the
results of the evaluation, certification testing
may take place in August 1991, when several TEDs
wing he tasted.
E00
OCIA
2:60
16/02/90
THE WHITE HOUSE
WASHINGTON
Date: May 20, 1991
FOR:
GOVERNOR SUNUNU
FROM:
ED ROGERS
Action
Your Comment
Let's Talk
XXX
FYI
Perhaps you and/or the President
should do a "thank you" note to
Augustine?
MAY 17 '91 12:07 MMC WASH OPS (301) 897-6704
P.2
MARTIN MARIETTA CORPORATION
6801 ROCKLEDGE DRIVE
BETHESDA, MARYLAND 80817
TELEPHONE (201) 867-0186
NORMAN R. AUGUSTINE
May 16, 1991
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
The Honorable Timothy E. Wirth
United States Senate
Washington, DC 20510
Dear Senator Wirth:
I am writing you to express Martin Marietta's strong support
for extension of Fast Track Authority for trade negotiations.
In our opinion, the successful conclusion to the Uruguay Round
of trade negotiations and the pursuit of a North American Free
Trade Agreement are in the best economic and security interests
of the United States.
I share the view that the vitality of our nation's economy
is explicitly linked to our participation in the international
market. In turn, our ability to maintain our nation's security
is explicitly linked to the health of our nation's economy. The
increasing competition in the international marketplace makes it
imperative that we move forward as quickly as possible to
conclude those treaties which will provide a more equitable
international market for U.S. business, while at the same time
expanding our trading opportunities throughout the world. Fast
Track Authority is essential to ensure that such occurs.
Sincerely,
now
Norman R. Augustine
THE WHITE HOUSE
WASHINGTON
Date: May 10, 1991
FOR:
SIG ROGICH
FROM:
ED ROGERS
Action
Your Comment
Let's Talk
XXX FYI
May 9, 1991
MEMORANDUM TO GOVERNOR JOHN SUNUNU
INFO
FROM SENATOR DANIEL K. INOUYE
SUBJECT: PRESIDENT BUSH AND THE 50th ANNIVERSARY OF PEARL HARBOR
SUMMARY
Participation by President Bush in a program of activities
commemorating the 50th anniversary of the Japanese attack on
Pearl Harbor could serve both to give recognition to the
sacrifices made by American men and women in the military and to
initiate a new era of Japanese-American friendship and
cooperation in world affairs. President Bush, as a hero of the
Second World War and as the principal architect of the New World
Order, could, in a bold and dramatic stroke, put to rest any
lingering animosities from World War II and set the course for
the United States in the Pacific for the next century. President
Bush and Prime Minister Kaifu of Japan could meet on the deck of
the U.S.S. MISSOURI, where Japan surrendered 45 years ago, and
jointly commit their nations to a broad and inspiring statement
of common objectives of peace, friendship, and economic
development, to be known as the Pearl Harbor Declaration.
BACKGROUND
On December 7, 1991, the 50th anniversary of the Japanese attack
on Pearl Harbor and other U.S. military installations in Hawaii
will be marked by a series of commemorative ceremonies presently
being organized by the Department of Interior and the Department
of Defense, with the Commander in Chief, United States Pacific
Command (CINCPAC) acting as the "Operating Agent" for the
Department of Defense.
Planning for a number of events has begun, with some plans well
underway, while others are still in the preliminary stage. A
significant issue which has come up in the planning is how best
to minimize any friction with the citizens and Government of
Japan, as well Japanese-Americans who would rightly be offended,
if events were seen to have an anti-Japanese character. Some
have suggested that the emissaries of the Japanese Government
might be invited to wreath laying ceremonies aboard the Arizona
Memorial.
I do not share this point of view, because I regard the
wreath laying ceremonies as a uniquely American event. These
ceremonies, and the attendant memorial address are timed to
coincide with the precise anniversary of the time of the actual
attack and mark the loss of American lives in that tragedy. To
my recollection (and I have participated in annual services each
year since 1959), no foreign government has ever been invited to
participate in these memorial services. Something, however,
ought to be done to allow our Japanese allies an opportunity to
express their remorse for the actions of the military
dictatorship which seized control of Japan in the 1930s and also
to our Government to indicate our readiness to renew and
reinvigorate U.S. -Japan friendship. There follows what I hope
will be useful suggestions to achieve these ends.
I. On the morning of December 7, the U.S. Navy will sponsor a
commemorative ceremony on the USS ARIZONA Memorial. Included in
the ceremony will be wreath presentations by veterans groups and
civic organizations affiliated with the military, a salute by a
military honor guard, a "missing man" flyover of F-15 aircraft,
and the silent passing of a U.S. Navy warship. I understand that
the President has been invited to give the memorial address.
As one who has participated frequently in these memorial
observances, I strongly urge the President to accept the
invitation. The quiet dignity of the ceremonies, the solemnity
of the occasion, brings a swelling of national pride in the heart
of each participant. The tribute paid by our active military
forces to their fallen comrades moves all who witness these
events to an appreciation of the courage and determination which
allowed our country to rise from the flames and destruction of
that morning in 1941 to become the most powerful and just
military power on earth.
But, I most respectfully submit, this occasion should be
reserved to our people. Quite apart from the impracticality of
attempting to assemble a large number of people on the USS
ARIZONA Memorial, it is a memorial service wherein we honor our
dead. In my judgement, it would not be fitting to share that
solemn occasion with any others.
II. As you may know, plans are underway to have the battleship
USS MISSOURI participate in the commemorative ceremonies as her
final mission before she is retired from the fleet. After the
early morning ceremonies are concluded, and after a suitable
interval during which the President can refresh himself, it might
be possible to have a brief but extraordinarily significant
ceremony on the deck of the USS MISSOURI.
I personally believe it would be highly appropriate for the
President to invite Prime Minister Kaifu of Japan to join him on
the MISSOURI. This historic battleship was, as I am sure you
know, the ship on which Japan signed the instruments of surrender
at the conclusion of World War II. On the occasion of the 50th
Anniversary of the onset of war between the United States and
Japan, the USS MISSOURI could serve as the venue for a new
signing ceremony; one which would mark, not the end of war, but
the beginning of a new partnership between Japan and the United
States -- a relationship of equals, dedicated to common endeavors
in peace, friendship, and economic development.
In his remarks, the President could note that, "Forty-five
years ago, the senior representative of the United States
Government and the senior representative of the Government of
Japan met on this deck as victor and as vanquished. Today, as
President, as the senior representative of the United States
Government, I am pleased and honored to stand with Prime Minister
Kaifu, the senior representative of our friend and ally, Japan,
and to join with him in a common declaration of the renewed
determination of our two peoples to work together for peace,
friendship, and economic development. The declaration which we
sign today, which shall be known as the "Pearl Harbor
Declaration," marks the beginning of a new era in the
relationship between our two countries. This will be an era of
true partnership, a relationship of equals committed to a common
endeavor for the betterment of all mankind."
I believe that this declaration will have considerable
appeal to the Government of Japan. Clearly, the Japanese would
like to participate in the commemorative ceremonies. The event
which I have sketched out would provide such an opportunity, with
dignity and mutual respect, and would be in keeping with the
desire of our people to work with Japan to secure a better
future. I further believe that the significance of the Pearl
Harbor Declaration would resound throughout Asia and the Pacific
and provide the cornerstone for a new, multifaceted approach by
the United States to our Pacific neighbors.
III. Finally, because of the constraints on the number of people
who could attend either the memorial services or the ceremonies
on the USS MISSOURI, perhaps the President would consider making
a few brief remarks at an outdoor location, such as the Aloha
Stadium. The stadium is contiguous to the Pearl Harbor Navy
Installation and would require little in the way of special
transportation or security arrangements. It is large and can
seat several thousand people.
This would be a fine occasion for the President to recognize
the contributions of the men and women of our military services
who have gone into harms way to defend America. Elements of the
1st Marine Division from Kaneohe, among the first to deploy to
Saudi Arabia and the first to be in combat at Khafji, would be
joined by members of the 442 nd Regimental Combat Team, which was
the most highly decorated unit in World War II. Hundreds, even
thousands of active duty and retired military personnel --
veterans of the Gulf War, of Vietnam and Korea, and of World War
II would fill the stadium and give the President a warm welcome.
Indeed, the President may choose to make a major policy address
before this, most friendly audience.
I believe that these three events would receive broad
coverage by U.S. and foreign television and print media. The
President will be accorded an opportunity to speak and be seen on
a stage of historic proportions. The Pearl Harbor commemorative
ceremonies will be a most appropriate lead event in a worldwide
series marking the 50th Anniversary of World War II. The
participation of the President in the ceremonies at Pearl Harbor
will be seen and will be remembered by millions of people. I
stand ready to help the President make these events a fitting and
proper memorial of our past and a grand celebration of our
future.
THE WHITE HOUSE
WASHINGTON
DATE: May 7, 1991
TO:
GOVERNOR SUNUNU
FROM: ED ROGERS
FYI.
801 364 7644 SLC OLYMPIC BID
05/06/91
VIA SATELLITE
Sports
FRIDAY, MAY 3. 1991
Salt Lake City goes for the gold
When bidding is held June 15 for the host city for the 1998
Winter Olympics, Salt Lake City, lightly regarded previous-
ly. now figures to be the probable winner.
"When Atlanta was awarded the '96 Summer Games. Salt
Lake had very long odds for '98," says International Man-
agement Group's Barry Frank, who represents the '92 and
'94 Winter Olympics. "But Salt Lake has done a fantastic job
of putting together a quality bid. There are only two other
viable bidders - Nagoya, Japan. and Ostersund. Sweden.
And Nagoya has environmental problems."
Probable 2000 Summer Olympics site: Berlin.
THE WHITE HOUSE
WASHINGTON
DATE: May 6, 1991
TO:
GOVERNOR SUNUNU / BOBBIE KILBERG
FROM: ED ROGERS
FYI.
MEMORANDUM
DATE: MAY 3, 1991
TO:
TOM BELL
FROM: BILL SKLAR
RE:
NORTHERN TELECOM/MEXICO/EPA ANNOUNCEMENT --
"WHITE HOUSE" IDEAS
On Monday morning (May 6) at 9am in the zenger Room of the
National Press Club, the following will speak at a press
conference to announce the donation of CFC elimination
technology by Northern Telecom to the Mexican electronics
industry:
Northern Telecom: Dr. Margaret G. Kerr, VP Environment,
Health and Safety
Government of Mexico: Dr. Sergio Reyes-Lujan, Under
Secretary of Ecology (SEDUE)
U.S. EPA: Eileen Claussen, Director, Office of Atmospheric
and Indoor Air Programs
The technology transfer being announced is an important
innovation in protecting the ozone layer and is an example of
U.S./Mexico cooperation on environmental protection. This
public/private partnership effort will assist Mexico in
reaching its goal of eliminating the use of ozone-depleting
substances on the same challenging schedule as industrialized
nations.
The White House might support the announcement in the
following ways:
1. Complimentary reference by President Bush regarding the
above announcement on Monday or Tuesday
2. President Bush photo opportunity at the White House
3. vice President Dan Quayle photo opportunity at the White
House (or anchor the press conference)
4. EPA Administrator Reilly photo opportunity and/or anchor
the press conference
5. Commerce Secretary Mosbacher photo opportunity and/or
anchor the press conference
6. White House sets up press briefing for the group with the
white House press corps (without the president)
7. President Bush cites the NT program in future speeches
and letters to the Hill or other key audiences
THE WHITE HOUSE
WASHINGTON
Date: May 6, 1991
FOR:
GOVERNOR SUNUNU / ROGER PORTER
FROM:
ED ROGERS
Action
Your Comment
Let's Talk
XXX FYI
Federal Government Regulatory Overreach
Impacting The U.S. Pulp and Paper Industry
April 29, 1991
Red Cavaney, President
American Paper Institute
The EPA Administrator and the entire Agency face a daunting
task in implementing the lengthening array of ever-more complex
environmental laws. In the face of this challenge, however, it
is ultimately counter-productive to the goal of long-term
environmental protection for regulatory agencies to take
important actions without following public rulemaking procedures,
or to implement laws and policies in an unnecessarily crabbed and
inflexible manner.
We believe that EPA Administrator Reilly is committed in
principle to the application of good science and to avoiding
regulatory overreach and micro-management. His initiation of an
EPA review of dioxin potency, in light of a series of new
scientific developments, is but one recent example.
The challenge ahead for the Administrator and the Bush
Administration is to ensure that the principles expressed by the
President and the Administrator are actively reflected in all of
the Agency's major undertakings. Regrettably, this is not always
the case; as exemplified in the following examples, key offices
appear to have failed to conform their actions to Administration
and Agency policy.
1. Unwarranted Expansion of "Wetlands"
We share the Administration's vision for wetlands
management, including support for the national "no overall
net loss" goal. However, application of the 1989 Federal
Wetlands Delineation Manual results in a gross and
unreasoned expansion of "waters of the United States." Such
mis-definition and mis-classification has nothing to do with
the legitimate goal of managing wetlands, and everything to
do with unwarranted federal intrusion into local land use
issues and the prerogatives of landowners.
In illustration of our concerns, several pulp, paper,
forest products and timber companies have used the 1989
Federal Wetlands Delineation Manual to estimate the amount
of wetlands acreage on various tracts of forest land. The
results of these surveys are strikingly similar, indicating
a tremendous and unwarranted expansion of "waters of the
United States.' In the examples below, "wetlands" acreage
has increased three-fold. These surveys were conducted
primarily in the southeastern United States (South Carolina,
Georgia, Florida), but evidence suggests these conclusions
are also valid for other parts of the country.
South Carolina Prior to the 1989 Manual, 31
percent of a 6,782 acre tract of pine flatwood
forest was considered wetlands according to the
Army Corps of Engineers interpretation of wetlands
as swamps, bogs and marshes. These areas are true
wetlands characterized by the presence of standing
water or extended periods of soil saturation to
the surface through early summer. After the
Manual was published, 81 percent of the entire
tract was considered wetlands because water is
within 12 to 18 inches of the surface for 7
consecutive days during the growing season.
Georgia 43 percent of a 33,500 acre forested
tract, owned by another company in Georgia, was
considered wetlands prior to publication of the
Manual. After the Manual was released, 95 percent
of the entire tract was considered to be
jurisdictional wetlands even though no standing
water or extended periods of saturation were
present. These lands are functionally
indistinguishable from upland forests and bear no
resemblance to the swamps, bogs and marshes
defined as wetlands in regulations.
Two adjacent fields, one with trees and another
with row crops, are subject to two vastly
different tests for the presence of wetlands
hydrology. Using a different hydrology test for
forest crops (water below the surface) as opposed
to agricultural row crops (water at the surface
for 15 days) not only creates a lack of needed
consistency for the same Federal regulatory
program, but also brings into question the
scientific and technical credibility behind the
hydrology criteria in the federal wetlands Manual.
Attached is a letter the industry sent to EPA March 6,
1991, outlining our concerns and recommendations for action.
2. Unjustified Expansion of "Navigable Waters"
Both EPA and the Corps of Engineers continue to claim
authority under the Clean Water Act to regulate non-
navigable, isolated waters whose sole connection to
interstate commerce is their use, or potential use, by
- 2 -
migratory birds or endangered species. Thus, EPA and the
Corps would require permits to be obtained for various
activities affecting these isolated waters, even if the
"waters" consist of a few inches of ponded water accumulated
during the rainy season. Under this broad claim of
authority, millions of acres would be subject to federal
regulation for the first time.
Although it is extremely doubtful that Congress ever
intended to extend federal jurisdiction under the Clean
Water Act to reach "waters" whose sole connection to
interstate commerce is visitation by wildlife, neither EPA
nor the Corps has attempted to validate their purported
jurisdiction through proper rulemaking proceedings.
Instead, such jurisdictional claims have appeared only in
internal memoranda and prefatory language, never subject to
the scrutiny of public notice-and-comment rulemaking.
Because neither EPA nor the Corps has subjected this
expanded jurisdictional claim to rulemaking -- and
subsequent final judicial review -- affected parties have
been forced to bring lawsuits in individual instances where
this jurisdiction has been asserted.
3. Rulemaking By Memorandum -- Clean Air Act "Top Down"
Policy
EPA's practice of using policy statements and internal
memoranda as a means of establishing new legal requirements
continues to harm the regulated community. In recent years,
EPA has increasingly used these informal means to impose
substantial new regulatory burdens on affected parties.
This practice deprives affected parties of the due process
protections inherent in the notice-and-comment rulemaking
proceedings that the Agency is required to follow when
establishing new regulatory requirements.
Nowhere has EPA's "rulemaking by memorandum" been more
evident than with EPA's implementation of the "top down"
policy. Beginning in 1987, EPA has been attempting to
significantly change the process by which applicants for
Prevention of Significant Deterioration (PSD) permits
demonstrate that a chosen emissions control technology
represents the requisite "Best Available Control Technology
(BACT) for that source.
The Clean Air Act and EPA's own promulgated regulations
provide state permitting agencies with a great measure of
flexibility when making a BACT determination. Through a
series of memoranda issued over the last four years,
however, EPA has established a presumptive requirement that
the most stringent technology must be applied when issuing a
- 3 -
PSD permit, unless shown by the permitee to be unfeasible
(in practice, a nearly impossible burden). Although this
requirement does not appear in any regulation or statute,
EPA's regional offices have been instructed that a permit
determination not based on this "top down" policy will be
subject to enforcement action. Companies in several states,
particularly states in EPA Regions 4, 5, and 6, have been
adversely affected by this unpromulgated policy.
Despite the fact that the Office of Management and
Budget has determined that the "top down" policy is a rule,
and has ordered EPA to cease implementation of the policy
until it has been reviewed by OMB, EPA has not complied.
Although EPA has now publicly committed to subjecting the
"top down" policy to the scrutiny of notice-and-comment
rulemaking, the Agency refuses to cease implementation of
the policy until such time as it is promulgated as a
legitimate rule.
4. Clean Air Act Implementation Issues
Overestimated Chloroform Potency
EPA's Air Office continues to use an outdated
chloroform potency factor despite a series of new studies
which have convinced other Federal agencies, as well as
several other EPA offices, to revise the potency factor to
incorporate the newest scientific findings. At a meeting
early this year with industry leaders, Administrator Reilly
committed to initiate a full agency review of the chloroform
potency factor.
However, Air Office staff claim to have not received
notice of this commitment, nor has a line item for
chloroform potency review appeared in the new EPA budget.
The industry fears that without a review of chloroform's
potency in light of the most current science, the Agency
will mandate a series of costly, scientifically unjustified
controls under the Maximum Achievable Control Technology
(MACT) and residual risk provisions of the Clean Air Act.
Hydrogen Sulfide Status
The addition of hydrogen sulfide to the list of 189
pollutants regulated under Title III of the Clean Air Act
Amendments of 1990, despite a last-minute Congressional
Conference Committee agreement to delete it from the list of
hazardous air pollutants, is a significant concern. There
is some confusion involving the status of this deletion,
since hydrogen sulfide appears to have been included in the
version of the bill signed by the President. Hydrogen
- 4 -
sulfide's inadvertent listing will lead to the unnecessary
and costly regulation of a pollutant already sufficiently
regulated as a welfare pollutant under the existing Act,
despite clear Congressional intent that it not be regulated
as a hazardous air pollutant.
MACT Development Needs Industry Input
In implementing the Clean Air Act Amendments, the
Agency is not committing the necessary resources to the
development of MACT standards for the pulp and paper
industry. Specifically, an EPA contractor has been charged
with preparing a two-phase study of the pulp and paper
industry as a prelude to MACT standard development, despite
contractor unfamiliarity with the industry and oversight by
low level EPA staff also unfamiliar with industry processes
and equipment.
Without the dedication of senior, technically qualified
staff knowledgeable about the pulp and paper industry, as
well as appropriate support from knowledgeable contractors,
costly and unsound MACT regulations will be developed behind
schedule, resulting in a significant waste of industry and
Agency resources. EPA should establish a formal process for
involving the industry during the formative stages of MACT
standard development.
Chilling Effects on Audit Practices
A number of companies have instituted comprehensive
environmental auditing programs to ensure protection of the
public and employees and to improve manufacturing processes
and, ultimately, products. During the Clean Air Act
Amendments legislative process, our industry was active in
pointing out that requirements under the Title V Permit
program that would require reporting of any permit
"deviations" would have a potential chilling effect on
auditing practices without assurances that companies
discovering violations during audits would be protected from
criminal enforcement, if they moved quickly to correct these
violations.
Now that implementation of the amendments is
progressing, our concerns remain, as evidenced by Deputy
Administrator Hank Habicht's recent statements to an
American Bar Association conference that companies
uncovering violations during an audit may be "waving a red
flag" at EPA, subjecting a company and its top management to
the possibility of criminal prosecution. Our fear is that
laudable corporate action will be penalized for strong
environmental compliance auditing programs.
- 5 -
Formal guidance should be issued and distributed to
regional and state pollution control authorities reflecting
Congressional intent that de minimis or technical violations
are not subject to enforcement action when the source takes
good faith actions to correct deviations, and that a source
discovering major violations during an audit should not be
subject to criminal action if the source takes prompt action
to correct the violation.
5. Nationwide Stormwater Program: Too Rushed In
Implementation
After years of inactivity, EPA published a stormwater
rule with a limited time period for application, took
minimal steps to narrow the scope of coverage and, as yet,
has failed to publish a general permit application, which is
viewed as critical if the program is ever to work
effectively.
Last November, EPA promulgated a final regulation
requiring all industrial facilities to apply for stormwater
discharge permits for runoff caused by rainfall or snow
melt; bringing hundreds of thousands of abandoned mine
sites, charred forest areas used temporarily to store cut
wood and other remote industry owned or operated sites into
the complex National Permit Discharge Elimination System
(NPDES) i and requiring extensive and expensive sampling.
State and local officials are equally concerned about the
direction of the program.
EPA, in recognition of the growing concern about the
new regulation, has briefly extended the application
deadline but continues to delay publication of the general
permit. OMB has withheld approval of the publication of the
permit because of the unnecessarily complex testing and
pollution prevention requirements that EPA proposes to
include in the general permit.
EPA is urged to listen carefully to the OMB
recommendations; to streamline and simplify the general
permit (name, address and identification of water body into
which stormwater is discharged) ; and to delay the
application date until one year after the revised general
permit has been published.
- 6 -
*
EPA Administrator Bill Reilly has been a very forceful and
effective spokesman for President Bush's environmental agenda.
He is creative, open and responsive. Several of his most recent
initiatives -- the roundtable process related to passage of the
Clean Air Act Amendments, and his Pollution Prevention Initiative
-- hold out great promise, if the disincentives to participants
can be minimized. The U.S. pulp, paper and paperboard industry
looks forward to working closely with all within the
Administration to advance the President's goals for a clean
environment. Our early support for the President's Clean Air Act
Amendments and for Administrator Reilly's Pollution Prevention
Initiative are but two examples of our commitment.
- 7 -
THE WHITE HOUSE
WASHINGTON
Date:
May 6, 1991
FOR:
GOVERNOR SUNUNU
FROM:
ED ROGERS
Action
Your Comment
Let's Talk
XXX
FYI
THE STATE
STATE OF MINNESOTA
On
OFFICE OF THE GOVERNOR
130 STATE CAPITOL
April 10, 1991
SAINT PAUL 55155
*1858*
ARNE H. CARLSON
GOVERNOR
Dear Congressman
I am writing to urge you to support the Administration's request for a two-year extension
of the "fast-track" procedures. Failure to grant this extension could mean a serious
setback, even the demise, of current free-trade negotiations.
Opening new markets for U.S. products represents the most important step that the U.S.
government can make to foster economic growth. Lowering trade barriers makes sense
for consumers, employers and employees. Reducing trade barriers will translate to
increased exports, economic growth and job creation for Minnesota.
Exports are important to the Minnesota economy. In 1990, the state exported $6 billion
in manufactured products, ranking Minnesota 18th in the nation. The opening of new
markets and the removal of trade barriers has had a very positive influence on the
volume of exports from the state. For example, since 1987, when Mexico began
reforming its tariff structure, Minnesota's exports to that country have grown by 87%. I
believe that a successful conclusion of the GATT negotiations and the North American
Free-Trade talks will result in strong economic growth for the state and the country.
I realize that there are concerns about environmental and labor issues stemming from
the North American Free-Trade negotiations with Mexico and Canada. It will be
important for these issues to be resolved to the satisfaction of Congress. If they are not,
the fast-track procedures do not prevent Congress from rejecting a negotiated agreement.
But a failure to grant an extension of the fast-track procedures could drive our
negotiating partners from the table. This would be a lost opportunity.
Again, I respectfully request that you approve the President's appeal for a two-year
extension of the fast-track procedures. Successful conclusions of the GATT negotiations
and the North American Free-Trade talks could reap enormous benefits for the
Minnesota, U.S. and World economies. Thank you for your consideration.
Sincerely,
ARNE H. CARLSON
11 EQU AL OPPORTUNITY FMPI OYER
THE WHITE HOUSE
WASHINGTON
Date: May 6, 1991
FOR:
GOVERNOR SUNUNU
FROM: ED ROGERS
Action
Your Comment
Let's Talk
XXX FYI
APR-30-1991 11:55
FROM NMHP&M-GOV 916/445-6106
TO
12024562397
P.02
Wilson's woes with GOP
Tax-hike plans worsen
INSIDE
By Amy Chance
Bee Capitol Bureau
But in the midst of a bipartisan beginning
that has put him on friendly terms with the
The GOP's budget point man in
Democratic Assemblyman John Vasconcel-
Democratic-controlled state Legislature. Wil-
the Assembly is a sharp-tongued
los. embittered by lack of access to California's
son's relationship with the most conservative
fiscal conservative who has
last Republican administration. disgustedly de-
members of his own party is crumbling.
demonstrated a willingness to
clared in December that former Gov. George
Right-wing Republicans, never happy with
compromise with his Democratic
Deukmejian was "history bad history."
Wilson's support of abortion rights. remained
colleagues.
Just a few months later, Vasconcellos has
largely silent earlier this year as he used the
Page A3
found A pal in the state's newest Republican
governor's office to push environmental causes
chief executive.
and social programs.
in a dramatic change from the
Gov. Wilson has called him a "good friend"
As the new governor delighted Democrats
experience of his predecessor.
and publicly embraced his efforts to bolster
last week with a budget plan that relies on $6.7
Gov. Wilson's key appointees are
California's self-esteem. The liberal legislator
billion in tax increases, however. conservatives
expected to get a warm response
plays racquetball with Bob White. Wilson's
tials. began to question Wilson's Republican creden-
in state Senate confirmation
chief of staff.
hearings.
And Vasconcellos, a key budget committee
His proposal, said anti-tax activist Lewis Uhl-
Page A23
chairman, has taken to complimenting Wilson's
er, "threatens to make Pete Wilson the Michael
leadership skills at every turn.
See WILSON, page A23
CON'T
APR-30-1991
11:55
FROM
NMHP&M-GOV
916/446-6106
TO
12024562397
P.03
Wilson: Gay rights bill key for right
Continued from page Al
hold their fire," said Wayne C. John-
Dukakis of the West."
son, a GOP political consultant. "No
Wilson dismisses criticism from
amount of calming words from con-
the right wing of his party as a minor-
servative Republican leaders will
ity voice, saying his brand of Republi-
make any difference. It is a highly
can politics is most representative of
charged emotional issue that goes to
California's GOP voters. Ultimately,
the core of Republican activists out
he believes that Californians will re-
there."
spect a leader who is willing to take
But if gay rights legislation has the
some risks.
potential to anger activists, some
"I'm happy to compare Pete Wil-
GOP strategists are convinced that
son's credibility as a fiscal conserva-
the proposed tax increases threaten
tive with anybody." said the gover-
Wilson's standing with mainstream
nor's communications director, Otto
Republican voters.
Bos. "But Republicans also want
"When he proposes the largest tax
leadership. That's one of the reasons
increase in California history, that's
Ronald Reagan endcared himself to
where he begins to part ways with
the people of this state, because he
most Republicans," one GOP strate-
was willing to stick his neck out and
gist said.
make things happen."
Bee file
In building support for his budget
In order to make things happen,
Democrat John Vasconcellos
proposal within his own party. Wil-
however, Wilson will need some as-
has lauded Wilson's leadership.
son will use the tools that have
sistance from Assembly Republicans.
worked to impress Democratic legis-
some of whom will have to help pro-
spending like drunken sailors," he
lators - his accessibility and the
vide the two-thirds vote needed for
said. "Even the more reasonable
power of personal persuasion. He
budget approval.
members of our caucus will have
spent two hours at an Assembly GOP
His ability to control that group,
trouble supporting this proposal."
caucus retreat Friday morning in
meditionally more resistant to tax in-
Complicating Wilson's relation-
Grass Valley hashing out his plan
creases than Senate Republicans.
ship with Assembly Republicans is
with fellow Republicans in a some
will be one of the keys to his success
gay rights legislation now pending in
times-hcated discussion.
governor, said Assemblyman
the Legislature.
The administration also will use
Souce Bronzan, D-Fresno.
Twenty-eight caucus members
public pressure as a weapon. cultivat-
"Unfortunately there is A faction
signed a letter to Wilson earlier this
ing support from newspaper editorial
that are basically modern-day anar-
month urging him to veto AB 101. a
boards. elected county officials and
chists," he said. "They really don't
bill by Assemblyman Terry Fried-
others. Already, Wilson aides have
care about government. To cause the
man. D-Los Angeles. that would ban
portrayed Assembly Republicans as
rotal disruption of services is not only
housing and employment discrimina-
uncooperative on the budget, noting
something they don't mind, they look
tion against lesbians and gays.
that they have criticized proposals
this as an opportunity to do just
Yet in discussing the measure re-
from the governor, Democrats and
that. The combination of that and the
cently at a gathering of newspaper
Senate Republicans while failing to
two-thirds vote requirement means
editorial writers. Wilson said he is
craft an alternative plan of their own.
that they could withhold the votes
"very likely" to sign the bill. He said
"With some people the baseball
and paralyze the system.
he agrees with gay rights advocates
bat works better. with others the
"In some respects. what you're
that homosexuality is not a "prefer-
feather duster works better," said a
sicing is a struggle between modera-
ence" - that people do not choose
Wilson administration source.
don and dedicated extremism."
their sexual orientation any more
"Through a combination of softball
One of the Assembly Republican
than they choose the color of their
and hardball, you put the votes to-
caucus' most outspoken members,
eyes.
gether one by one."
Com McClintock of Thousand Oaks,
Wilson also rejected opponents'
Wilson also will benefit from the
signated trouble ahead for Wilson's
argument that such legislation is un-
political tools at his disposal as gov-
budget proposal by declaring, "Farli-
necessary, the reason Deukmejian
ernor. Although he has not threat-
there were storm warnings. I
cited when he vetoed a similar bill in
ened to harm Republicans who don't
think I just watched the barometer
1984.
vote his way, legislators nonetheless
full right off the meter."
"He has voted historically and con-
are sensitive to an unspoken mes-
But McClintock and other ultra-
sistently for legislation that bans dis-
sage that he can do much to boost or
dinservatives cannot block Wilson's
crimination." Bos said. "If that's what
harm their future political careers.
man. The governor is likely to need
this remedies, he will very likely sign
His ability to block A reapportion-
Newer than 10 GOP votes in the As-
it."
ment plan skewed in favor of Demo-
Imbly, support he hopes to draw
Assemblyman Stan Statham, R-
crats was a key reason conservatives
from more moderate members of his
Oak Run. a moderate who has led the'
ultimately united behind him in last
party.
legislative opposition to the measure,
year's gubernatorial election.
Assemblyman William Baker of
said he doubted Wilson's signature
"The orangutans in the Assembly
Vanville is a Republican who has not
on the bill would irreparably damage
Republican caucus are an unmanage-
pledged to oppose any tax increase
his relationship with most Assembly
able bunch of louts and always will
this year. But he said Wilson should
Republicans. He and others predict-
be," said Doug Watts, a former Cali-
not underestimate the degree of GOP
ed, however. that members of the
fornia political consultant and Deuk-
distaste for higher taxes.
party's right wing would never forget
mejian administration official. "But I
"The overruling thought in our
such HO action.
think he can keep them in control.
caucus is that it isn't the fault of em-
"If he were to sign AB 101, it would
They're not going to have anywhere
ployers and the taxpayers that we are
be very difficult for conservatives to
else to go in the end."