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470417101
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Tuesday, April 9, 1991
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title
Tuesday, April 9, 1991
citationUrl
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90591-009
collections
George H. W. Bush Papers
Presidential Daily Files
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Originally Processed With FOIA(s):
FOIA Number:
2009-0166-S
2009-0166-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: Office of the President
Series:
Daily Files
Subseries:
OA/ID Number:
90591
Folder ID Number:
90591-009
Folder Title:
Tuesday, April 9, 1991
Stack:
Row:
Section:
Shelf:
Position:
V
0
0
o
0
Withdrawal/Redaction Sheet
(George Bush Library)
Doc. No. / Type
Subject/Title
Date
Restriction
Classification
01. Schedule
Schedule of the President [redaction] (1 pp.)
04/09/91
(b)(3)
02a. Log
White House Telephone Log [President Bush] [redaction of
04/09/91
(b)(6)
personal information] (2 pp.)
02b. Log
White House Telephone Log [Signal Switchboard] [redaction of
04/09/91
(b)(6)
personal information] (1 pp.)
03a. Note
Handwritten notes of Presidential Phone call with President
04/09/91
(b)(1)
Carlos Andes Perez [one page double-sided] (3 pp.)
03b. Talking Points Points to be Made for Phone Call with Venezuelan President
n.d.
(b)(1)
C
Carlos Perez (3 pp.)
04. Memo
From Jay Parmer to Patty Presock Re: The President's Trip to
04/09/91
(b)(7)(e)
Montgomery, Alabama on April 13, 1991 [[redaction]] (1 pp.)
Page 1 of 1
Collection:
Record Group:
Bush Presidential Records
Office:
Office of the President
Series:
Daily Files
Subseries:
WHORM Cat.:
File Location:
Tuesday, April 9, 1991
Pinksheet Number:
dw2047
OA/ID Number:
90591-009
Date Closed:
7/5/2012
FOIA/Sys Case #:
2009-0166-S
Re-review Case #:
P-2/P-5 Review Case #:
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
01. Schedule
Schedule of the President [redaction] (1 pp.)
04/09/91
(b)(3)
Collection:
Record Group:
Bush Presidential Records
Office:
Office of the President
Series:
Daily Files
Subseries:
WHORM Cat.:
File Location:
Tuesday, April 9, 1991
Date Closed:
7/5/2012
OA/ID Number:
90591-009
FOIA/SYS Case #:
2009-0166-S
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
PRM. Removed as a personal record misfile.
BC
SCHEDULE OF THE PRESIDENT
Tuesday, April 9, 1991
8:00 am
Intelligence Briefing
Oval Office
(15 min)
(Scowcroft/Sununu)
8:15 am
National Security Briefing
Oval Office
(30 min)
(Scowcroft/Sununu)
8:45 am
Meeting with Governor Sununu
Oval Office
(30 min)
9:15 am
Administrative Time
Oval Office
(45 min)
10:00 am
Meeting with Ranking House
Cabinet Room
(60 min)
of/wireoublicans
(TAB A)
11:00 am
Personal Staff Time
Oval Office
(15 min)
11:15 am
Photo Opportunities
(15 min)
(TAB B)
Oval Office
1. Chriss Winston (Demarest)
2. Clayton Fong (Untermeyer)
3. Rob Portman (McClure)
4. Sara Maltby (Demarest)
11:30 am
Personal Staff Time
Oval Office
(15 min)
11:45 am
Staff Time
Oval Office
(10 min)
(Rogich)
(TAB C)
12:00 pm
Lunch
Oval Office
(75 min)
1:15 pm
OP/WP
Meeting with Business Leaders
Cabinet Room
(15 min)
on "Fast Track"
(Demarest)
(TAB D)
1:30 pm
Personal Staff Time
Oval Office
(25 min)
1:55 pm
The President departs to Address
South Lawn
TP
the American Business Conference
at the Department of Commerce
(Demarest)
(TAB E)
UNP 04/08/91
6:00 pm
2:40 pm
Arrives White House
South Lawn
3:00 pm
Drop by Points of Light
Roosevelt Room
(10 min)
Foundation Briefing (Corporate)
(Rogich)
(TAB) F)
3:15 pm
Meeting with Bipartisan
Cabinet Room
(45 min)
dm/do
Congressional Leadership
(McClure)
(TAB G)
4:00 pm
Administrative Time
Oval Office
(30 min)
4:30 pm
Meeting with Governor Sununu
Oval Office
(30 min)
5:15 pm
Haircut
West Basement
(45 min)
0744 POTUS IN OVAL 0758 ADD SCOWCROFT, GATES DCI
Bush Preside
SUNNNU,
(b)(3)
0811 DCI,
(b)(3)
OUT 0812 ADD VP
0835 SCOWCROFT, GATES OUT 0912 Sununu, VP OUT
1000 POTUS IN CABINET Room
Library Photocopy
1106 POTUS IN OVAL/ADD CONG BILL THOMAS
(109 THOMAS OUT 1110 POTUS TO ROSE GARDEN
III POTUS IN OVAL 1119 us INSTON ET AL IN
1120 ALL OUT 1121 FONG ET AL IN
1122 ALL out 1123 MALTBY ET AC IN 1124 ALL OUT
1125 PORTMAN BT AL IN 1126 ALL out
1129 POTUS IN DINING Room (RADIO ACTUALITY)
1134 POTUS TO SOUTH GROUNDS 1139 POTUS IN OVAL
1202 ADD SUNUNU 1204 ADD BOYDEN GRAY
1205 POTUS TO PATIO (LUNCH w/ Sununa, GRAY)
UNP 04/08/91
1310 ALL OUT 1312 POTUS IN OVAL
6:00 pm
1318 POTUS IN CABINET Room
1341 POTUS IN OVAL/ ADD CARLA HILLS, SUNUNU
12EA Ann 1253 DATIS Tn (mith TERMINDS
1430 POTUS IN OVAL/ADD Sunnnu
1433 Sununu out 1445 ADD SUNUNU
1451 SUNUNU OUT 1457 ADD PETERSMEYER
1500 POTUS IN ROOSEVELT Room
1606 POTUS IN OVAL/ADD GATES
1618 ADD SCOWCROFT 1640 GATES OUT/ADD SUNJNY
1635 SCOWCREET OUT
1702 Sununn OUT 1707 POTUS TO BARBER SHOP
1743 POTUS IN OVAL 1755 ADD FIRESTONE
1824 FIRESTONE out 1830 POTUS TO SOUTH GROUNDS
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
02a. Log
White House Telephone Log [President Bush] [redaction of
04/09/91
(b)(6)
personal information] (2 pp.)
Collection:
Record Group:
Bush Presidential Records
Office:
Office of the President
Series:
Daily Files
Subseries:
WHORM Cat.:
File Location:
Tuesday, April 9, 1991
Date Closed:
7/5/2012
OA/ID Number:
90591-009
FOIA/SYS Case #:
2009-0166-S
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - 15 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
PRM Removed as a personal record misfile
THE WHITE HOUSE
WASHINGTON
TELEPHONE MEMORANDUM
APRIL 9 th
19 91
PRESIDENT BUSH
TIME
NAME
ACTION
PLACED
DISC
OUT
5:23 AM
5:24
WHITE HOUSE ENGINEER
TLKD-OK WITH MR.
OFC: WASHINGTON, D.C.
RAY CARTER
UNCX
PM
202-456-2390
OUT
AM
INC
PM
OUT
9:21 AM
9:26
MRS. SHARON LOVELACE BLACKBURN
(b)(6)
TLKD-OK 9:23 A.M.
INC
PM
OUT
AM
INC
PM
OUT
9:49 AM
9:53
MR. GEORGE W. BUSH
(b)(6)
INC.
PM
TLKD-OK 9:50 A.M.
OUT
AM
Bush Presidential Library Photocopy
INC
PM
OUT
11:39 AM
11:42
MISS TERRY LACEY
NNC
PM
(b)(6)
TLKD-OK 11:40 A.M.
OUT
AM
INC
PM
OUT
11:58 AM
MR. DAVID Q. BATES
OFC: WASHINGTON, D.C.
XMC
PM
2:44
202-342-0040
TLKD-OK 2:42 P.M.
OUT
AM
INC
PM
OUT
***
MRS. BRIDGET MONTAGNE
OFC: WASHINGTON, D.C.
INCX
12:24PM
12:25
WHITE HOUSE ADMIN. EXT. 620-
TLKD-OK
GPO : 1983 O - 405-660 : QL 2
THE WHITE HOUSE
WASHINGTON
TELEPHONE MEMORANDUM
PRESIDENT BUSH
APRIL 9 th
91
, 19
TIME
NAME
ACTION
PLACED
DISC
OUT
XMX
MRS. BARBARA BUSH
RES: WASHINGTON, D.C.
INC
1:02 PM
1:04
WHITE HOUSE ADMIN. EXT. 534
TLKD-OK
OUT
AM
INC
PM
OUT
XM
JUDGE RICHARD T. HAIK
OFC: NEW IBERIA, LA.
INCX
2:31 PM
2:35
318-369-4410
TLKD-OK 2:32 P.M.
OUT
AM
INC
PM
OUT
XMX
JUDGE EMILIO M. GARZA
OFC: DEL RIO, TX.
INC
2:37 PM
2:40
512-775-6334
TLKD-OK 2:38 P.M.
OUT
AM
INC
PM
OUT
AM
MR. ALEXANDER M. HAIG, JR.
OFC: WASHINGTON, D.C.
INCX
2:44 PM
2:45
202-429-9788
TLKD-OK 2:44 P.M.
OUT
AM
INC
PM
OUT
AM
MR. BILL FRENZEL
L.W. ON RECORDER
OFC: WASHINGTON, D.C.
2:47 P.M.-TOLD MISS
XMC
2:46 PM
202-797-6086
BRIDGET MONTAGNE
OUT
AM
RETURNED CALL 3:36
P.M.-TLKD WITH MRS.
INC
PM
B/F/I/G/E/T/ MI MONTAGNE
OUT
AM
(FRENZEL talked
to POTUS)
INC
PM
GPO : 1983 0 - 405-660 : QL 2
THE WHITE HOUSE
WASHINGTON
TELEPHONE MEMORANDUM
PRESIDENT BUSH
APRIL 9 th
91
, 19
TIME
NAME
ACTION
PLACED
DISC
OUT
XMX
AMBASSADOR CARLA A. HILLS
OFC: WASHINGTON, D.C.
XINC
6:23 PM
6:26
WHITE HOUSE ADMIN. EXT. 816
TLKD-OK
OUT
AM
INC
PM
OUT
XXX
MR. WILLIAM E. EDWARDS
INCK
7:36 PM
7:41
(b)(6)
TLKD-OK 7:38 P.M.
OUT
AM
INC
PM
OUT
XM
MRS. MARGARET BUSH
INC.
7:41
PM
(b)(6)
7:42
Bush Presidential Library Photocopy
TLKD-OK
OUT
AM
INC
PM
OUT
AM
INC
PM
OUT
AM
INC
PM
OUT
AM
INC
PM
OUT
AM
INC
PM
OUT
AM
INC
PM
GPO : 1983 0 - 405-660 : QL 2
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
02b. Log
White House Telephone Log [Signal Switchboard] [redaction
04/09/91
(b)(6)
of personal information] (1 pp.)
Collection:
Record Group:
Bush Presidential Records
Office:
Office of the President
Series:
Daily Files
Subseries:
WHORM Cat.:
File Location:
Tuesday, April 9, 1991
Date Closed:
7/5/2012
OA/ID Number:
90591-009
FOIA/SYS Case #:
2009-0166-S
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute I(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRAJ
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRAJ
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
PRM Removed as a personal record misfile
THE WHITE HOUSE
WASHINGTON
TELEPHONE MEMORANDUM
SIGNAL SWITCHBOARD
April 9 , : 19 91
TIME
NAME
ACTION
PLACED
DISC
OUI
AM
Conference Call:
Tlkd-ok
President Carlos Andres Perez
4:16 PM
INC
4:09 PM
4:39
(b)(6)
OUT
AM
Mr. Cornelius F. O'Leary
White House Situation Room
White House Signal 2-2264
INC
PM
OUT
AM
Ms. Stephanie Van Reigersberg
Office, Washington, D.C.
647-3492
INC
PM
OUT
AM
INC
PM
OUT
AM
INC
PM
Bush Presidential Library Photocopy
OUT
AM
INC
PM
OUT
AM
INC
PM
OUT
AM
INC
PM
OUT
AM
INC
PM
OUT
AM
INC
PM
OUT
AM
INC
PM
GPO : 1983 0 - 405-660 : QL 2
PRESIDENTIAL MOVEMENTS
Andrews Air Force Base, Maryland
LOCATION
Washington, D.C.
DATE 9 April 1991
TIME
MOVEMENTS
0026
Arrive Andrews Air Force Base, Maryland
0038
Depart Andrews Air Force Base via Marine One
0045
Arrive South Grounds
0048
Residence
0745
South Grounds
0746
Oval Office
1001
Cabinet Room
1110
Rose Garden
1115
Oval Office
1135
South Grounds
1139
Oval Office
1207
South Grounds
1342
Oval Office
1353
South Grounds
1355
Depart South Grounds via Motorcade
1357
Arrive Department of Commerce
1428
Depart Department of Commerce via Motorcade
1429
Arrive South Grounds
1430
Oval Office
1500
Roosevelt Room
1523
Cabinet Room
1555
Oval Office
1707
Barbershop
1742
Press Office
WHCA FORM 15, OCTOBER 15, 1980
PRESIDENTIAL MOVEMENTS
LOCATION Washington, D.C.
DATE 9 April 1991
TIME
MOVEMENTS
1743
Oval Office
1830
South Grounds
1838
Residence
2038
Doctor's Office
2117
South Grounds
2126
Residence
WHCA FORM 15, OCTOBER 15, 1980
News Summary
OFFICE OF THE PRESS SECRETARY
THE WHITE HOUSE
WASHINGTON
Tuesday, April 9, 1991
6:00 A.M. EDT EDITION
INTERNATIONAL NEWS
BUSH CALLS FREE-TRADE OPPONENTS 'FEAR-MONGERS' -- President Bush,
stepping up his push for congressional extension of his fast-track
trade agreement negotiating authority, Monday called opponents of
lowering trade barriers with Mexico "fear mongers" who oppose
prosperity in Mexico.
(Copley)
SECRETARY BAKER MEETS WITH NEWLY POSITIVE SHAMIR -- Israel today
told the U.S. it was ready to hold peace talks with the Arabs under
American auspices and with the Soviet Union participating in a
regional conference.
(AP)
NATIONAL NEWS
DEMOCRAT'S BUDGET PLAN ASSURES CONFLICT WITH BUSH -- The House
Budget Committee chairman unveiled today a budget for the next
fiscal year that calls for more spending on social programs than
President Bush had proposed, virtually assuring the first of many
confrontations over domestic priorities after Congress returns
Tuesday.
(New York Times, Washington Post, Washington Times)
NETWORK NEWS (Monday evening)
IRAQI REFUGEES -- Secretary
Baker looked into the faces of
desperation that make up the
tidal wave of Iraqi refugees
INTERNATIONAL NEWS
A-1
fleeing Saddam's troops.
NATIONAL NEWS
A-11
Kurdish rebel sources
say Iraqi helicopter gunships
NETWORK NEWS
B-1
attacked refugees trying to
escape to Turkey and Iran.
PALESTINIANS -- Israel
released 1,000 Palestinians
from prison today.
This Summary is prepared Monday through Friday by the White House News Summary Staff.
For complete stories or information, please call 456-2950.
INTERNATIONAL NEWS
BUSH CALLS FREE-TRADE OPPONENTS 'FEAR-MONGERS"
HOUSTON -- President Bush, stepping up his push for
congressional extension of his fast-track trade agreement
negotiating authority, Monday called opponents of lowering trade
barriers with Mexico "fear mongers" who oppose prosperity in
Mexico.
"As we prepare to join a world linked primarily by economic,
not military, competition, we have nothing to fear except the fear
mongers themselves," Bush said in a speech to the first meeting of
the Houston chapter of the Hispanic Alliance for Free Trade.
"They seem to be the only ones who haven't learned lately that
defeatism produces defeat, while confidence and self-reliance
produce greatness," Bush told the organization
"Someone ought
to ask the opponents of fast-track why they oppose prosperity in
Mexico
And ask them what's wrong with a more stable Mexico. "
Bush also said his Administration "wants to ensure that
Mexican economic growth goes hand-in-hand with environmental
protection
President Salinas cares deeply about his nation and
its people, and he means business when he says he wants to clean
up Mexico's air and water."
(Benjamin Shore, Copley)
LABOR SAYS BUSH TRYING TO TAP ANTI-UNION SENTIMENT ON FREE TRADE
President Bush's fiery attack on the AFL-CIO for opposing a
free trade pact with Mexico is just a gambit to conceal the real
issue of how many American jobs would go across the Rio Grande,
labor leaders contend.
"He's engaging in a lot of rhetoric without looking at the
real issue, which is, 'Are the wage disparities going to result in
huge job losses and devastate lots of communities?' Obviously, we
think it is," said Alan Reuther, a lobbyist for the United Auto
Workers
Bush's attack on labor leaders, which came a day after he
vowed to go "head-on-head" with the AFL-CIO over the issue, also
probably was an attempt to tap anti-union sentiment and therefore
muster favor for the treaty, union officials said
At AFL-CIO headquarters, Rex Hardesty, a spokesman for the
14.2 million-member labor federation, declined to respond directly
to the President's latest comments, saying only that the
organization's position remained the same.
(Karen Ball, AP)
CANADA BRACES FOR INFLUX OF WHEAT FROM THE U.S.
Canada, the world's second leading wheat exporter, faces the
imminent and unwelcome prospect of wheat imports from the U.S.
This is the latest complication arising from the free-trade
agreement between the U.S. and Canada, which began to take effect
at the start of 1989
"Maybe we should look for a way to get out" of the free-trade
agreement, says Charlie Swanson, president of the Manitoba Pool
Elevators, a grain-elevator cooperative.
(Scott Pendleton, Christian Science Monitor, 1)
-елош-
White House News Summary
Tuesday, April 9, 1991 -- A-2
SALINAS FINDS FEAR IN CANADA
TORONTO -- Mexican President Salinas encountered fear and
vocal opposition Monday as he sought to persuade Canadians that a
Mexican-Canadian-U.S. free trade agreement is essential if North
America is going to compete in European and Pacific markets.
Opening a two-day visit to Canada aimed at stemming growing
opposition to the proposed agreement, Salinas also said that Mexico
wants to export "products, not people" north of its border, and
that lowering tariffs and trade barriers would reduce the flow of
Mexican workers into the U.S.
He told Canada's parliament in Ottawa that fears are
groundless that Canadian industries will move south in search of
cheap Mexican labor.
During a meeting with President Bush Monday in Houston,
Salinas acknowledged that there is similar skepticism in the U.S.
about the benefits of a trade accord. At that meeting, the two
presidents pledged an all-out campaign for the agreement.
(William Claiborne, Washington Post, D1)
KURDS CLAIM CIA URGED, RECRUITED THEM TO OVERTHROW SADDAM
Kurdish leaders, trying to demonstrate that President Bush
urged them secretly as well as publicly to overthrow Saddam
Hussein, said Monday that the CIA recruited Kurds in Turkey and
that a CIA-sponsored radio station urged the Kurdish people to rise
up against the Iraqi president.
The Kurdish leaders offered no written or physical evidence
of their assertion, but they said repeatedly at a news conference
that it was accurate. CIA spokesman Peter Earnest said Monday
night, "We don't comment on those kinds of reports of alleged
agency activity." The Kurdish leaders, sounding bitter at what
they called Bush's abandonment of them, said they had never
intended to occupy Iraqi cities, as happened shortly after the Gulf
War ended. But they said that a CIA-sponsored radio broadcast from
Saudi Arabia urged the Kurds to rise up, prompting them to take
over many northern towns and cities
"The masses responded to the call of President Bush. And the
Kurdish leaders, they did not have any choice but to try to
organize the masses,' said Assad Khailany, president of the Kurdish
National Congress in North America. "This nonsense that the
Administration did not ask for the uprising, I don't think anybody
is going to believe it."
(Michael Kranish, Boston Globe)
BAKER VISITS KURDISH CAMP, PROMISES HELP
BORDER POST 49, Iraq -- Secretary Baker waded into a sea of
Iraqi refugees Monday to promise them that emergency aid is on the
way, but he could not deliver what most of them really want -- the
overthrow of Saddam Hussein
Baker pledged: "It's up to the
international community as a whole to do something about this
tragic crime against humanity, and that is what we intend to do."
But refugees and relief workers, noting that almost no food
or medicine have reached the swelling camps so far, complained that
the promised aid is inexplicably slow in coming. Some Iraqis
expressed anger at the U.S. for failing to crush Hussein's regime;
others said their only hope now is permission to resettle their
families in the West.
(Doyle McManus, Los Angeles Times, A1)
-
White House News Summary
Tuesday, April 9, 1991 -- A-3
REFUGEES TELL BAKER MORE AID NEEDED
Secretary Crosses Turkish Border Into Iraq As Kurds Press Plight
CUKURCA, Turkey -- Secretary Baker today flew to this Turkish
border town and heard poignant appeals from Iraqi Kurdish refugees
for urgent international relief as he surveyed a sprawling border
camp that testified to the refugees' suffering.
In a gesture symbolizing U.S. willingness to reach out to the
Kurds -- even in defiance of Iraqi sovereignty -- Baker stepped
across the border from: Turkey into Iraq to meet with refugees on
the other side awaiting entry into Turkey
One of the Kurds, Sam Timathwes, shouted to attract Baker's
attention, then stepped forward and began describing the suffering
being endured by thousands of refugees here and in the mountains
and valleys of northern Iraq. "We are suffering from hunger and
starvation," Timathwes told Baker. "We don't have enough water
supply here
We need doctors, we need medicines, we need enough
food, and some people don't want to stay here. They want to go
abroad. This is the main point for some people here.
Baker, accompanied by Turkish Foreign Minister Alptemocin,
promised to mount a major international relief effort to provide
aid not only in Turkey but also in northern Iraq
"Most
importantly, Baker said, "hope of returning home has got to be
given to these people. And that means freedom from threat by the
Iraqi government, and safety from further repression."
(David Hoffman, Washington Post, A1)
Baker Visits Iraqi Refugees At Turkish Border
CUKURCA -- Still savoring the U.S. victory in Kuwait,
Secretary Baker on Monday looked briefly at the faces of those who
have found little to celebrate in the aftermath of the Gulf War.
Thousands of desperate Iraqi refugees peered down from the
craggy, rubble-strewn hillside at the visiting American, who wore
a blue windbreaker and cowboy boots
Turkish military officials
told Baker the flood of refugees was continuing, with as many as
20,000 destitute Iraqis arriving at the border just the night
before
In Washington, State Department spokesman Boucher said the
Baghdad government had sent troop reinforcements to northern Iraq,
and heavy fighting with the rebels was reported east of the city
of Suleimaniyah. Kurdish rebel leader Masoud Barzani charged that
Iraqi troops had rampaged through Kara Henjir, a village near the
northern oil center of Kirkuk, killing the entire population of
2,000 to 3,000 people. The report could not be confirmed
independently.
(Terry Atlas & Ray Moseley, Chicago Tribune)
-
White House News Summary
Tuesday, April 9, 1991 -- A-4
U.S., ALLIES WANT ENCLAVES IN IRAQ AS REFUGEE HAVENS
Europeans Back Protective Zone For Kurds
The U.S. and its European allies are moving to seek creation
of enclaves for refugees along Iraq's northern and southern
borders, a move that Iraqi opposition leaders said could further
undermine Saddam Hussein's control of the country.
Britain won European Community support Monday for its proposal
for a Kurdish enclave in northern Iraq under U.N. supervision that
would allow the hundreds of thousands of Kurdish refugees to be
sheltered and protected from troops loyal to Saddam.
At the same time, the U.S. was discussing with the U.N. and
Red Cross the possibility of moving up to 40,000 Iraqis now in the
U.S. -occupied zone in southern Iraq into a camp the U.S. Army is
already running there for displaced Iraqis, according to sources
in Riyadh
At the U.N., members of the Security Council began informal
consultations Monday night on ways to create a buffer zone in the
north. But some diplomats, including Secretary General Perez de
Cuellar, reacted cautiously to the idea and the council decided to
send a team to Iraq "in the coming days" to assess the situation.
(William Drozdiak, Washington Post, A1)
Britain, France To Ask U.N. To Set Up 'Safe Haven' For Kurds In
Iraq
LUXEMBOURG -- Britain and France, backed by their European
allies, said Monday they would ask the U.N. to establish a "safe
haven" for Kurds in northern Iraq.
This haven or enclave could embrace all of what is considered
Iraqi Kurdistan, plus some of the major cities of northern Iraq.
Prime Minister Major said the U.N. could use force to carve out the
territory if Baghdad resists the idea.
Major said he had "every indication that the United States
will support it." However, he said he had not sounded it out with
President Bush before presenting it to a summit meeting in
Luxembourg of the 12 EC nations
"I don't think it is impossible," said U.N. Secretary-General
Perez de Cuellar. "But of course it would be in Iraqi territory,
which would raise the problem of sovereignty, and I don't know if
we can impose on Iraq a special area. That would be complicated,"
he told reporters.
(R.C. Longworth, Chicago Tribune)
WEST PLEDGES AID FOR FLEEING KURDS, BAGHDAD SLAMS AIRLIFT
NICOSIA -- The West is rushing to ease the misery of Kurds
fleeing reprisals for their abortive uprising in Iraq, but Baghdad
says airlifts of blankets and food are interference in its internal
affairs.
The refugees say they are being strafed by Iraqi helicopter
gunships on their flight to sanctuary
The EC Monday pledged $180 million in aid to the Kurds and
said Iraq would be an international pariah as long as President
Saddam Hussein was its leader
Iraqi Foreign Minister Ahmed Hussein Khudayer sent a letter
to U.N. Secretary General Perez protesting that the relief
operation "proves the evil intentions harbored by the U.S. and
Britain toward Iraq.'
(Andrew Hill, Reuter)
-erom-
White House News Summary
Tuesday, April 9, 1991 -- A-5
RED CROSS URGES U.S. SHIELD FOR REFUGEES IN SOUTHERN IRAQ
RIYADH -- The U.S. has a "very great moral responsibility" to
protect thousands of refugees in occupied southern Iraq from
persecution by Saddam Hussein, a Red Cross official said Monday.
The official, Arnold Luethold, also confirmed the existence
of another Iraqi refugee camp He also said the repatriation
of Iraqi prisoners of war is continuing at an agreed rate of about
5,000 a day.
(AP, Washington Times, A8)
RIFT SEEN WITHIN SAUDI ROYAL FAMILY
OVER WHETHER TO AID SHIITES IN IRAQ
RIYADH -- A split has developed within the ruling Saud family
over what role, if any, their country should play in trying to
topple Saddam Hussein, according to Western diplomats.
The diplomats said the debate centered on whether Saudi Arabia
should provide money, ammunition and other supplies to Shiite
Muslims opposing the Iraqi army in the south
The Saudis
reportedly are split on whether to provide just enough aid to erode
the ground under Saddam without building it up too firmly under
their Shiite neighbors.
(Adam Pertman, Boston Globe)
SAUDIS SENDING RELIEF SUPPLIES TO IRAQI REFUGEES
NICOSIA -- King Fahd has ordered Saudi Arabian officials to
send relief supplies through international channels to help ease
the plight of Iraqi refugees, the Saudi Press Agency reported. He
issued the order at the weekly cabinet meeting Monday, SPA said.
The agency did not describe the nature of the aid.
(Reuter)
U.S. SEEKS TO PREVENT SAUDIS FROM BEING SUED
At the request of the Saudi Embassy, the Bush Administration
has asked a federal appeals court to reverse a ruling that allows
the Saudi government to be sued in the U.S. for the reported
torture of an American businessman.
In taking the unusual step, the Administration contends that
an important national interest exists in reversing the ruling --
to prevent foreign governments from retaliating by allowing
American officials to be sued in their courts.
(Neil Lewis, New York Times, A12)
KUWAITI MINISTER SAYS U.S. TO BE ASKED TO KEEP TROOPS IN EMIRATE
KUWAIT CITY A government minister said Monday the U.S. will
be asked to keep forces in Kuwait to deter any Iraqi aggression,
saying an Iraq led by Saddam Hussein still posed a threat to the
emirate's security.
Abdulrahman al-Awadi, the minister of Cabinet Affairs, also
told a news conference that he does not expect political parties
to be legalized in Kuwait before parliamentary elections planned
in 1992
He indicated Kuwait wanted a more extended presence,
though he refused to say how many troops would be requested or how
long they would be asked to stay. "President Bush, who was able
to mobilize all this effort in the world to support us, will never
hesitate to mobilize some force and some arrangement safeguarding
Kuwait from possible invasion," he said.
(Greg Myre, AP)
White House News Summary
Tuesday, April 9, 1991 -- A-6
STATE DEPARTMENT FAULTED FOR MILITARY EXPORTS TO IRAQ.
Defense and Commerce Department officials told a House panel
that State Department officials repeatedly blocked their efforts
to halt the flow of U.S. military-related exports to Iraq before
the invasion of Kuwait despite warnings of dire consequences
Rep. Gejdenson, chairman of the Foreign Affairs subcommittee
on International Economic Policy and Trade, said the State
Department failed to provide key documents about Iraqi exports, and
Robert Kimmitt, the department's undersecretary for political
affairs, refused to appear at the hearing.
"The export control system did not break down," Gejdenson
said. "Saddam Hussein got the equipment that the State Department
wanted him to have. It seems to me that it's clear the State
Department doesn't want to bring to the light of day the decisions
around our foreign policy, or lack of foreign policy, controls to
Iraq and other obvious terrorist countries."
Gejdenson said U.S. policy to continue exports to Iraq despite
Saddam's brutality against his own population and threats to Israel
and others in the region "assisted in arming" Iraq and "may well
have been a factor" in Saddam's decision to invade Kuwait.
(will Dunham, UPI)
FIVE HOUSE DEMOCRATS URGE MIDEAST ARMS SALE CURB
Five leading House Democrats Monday asked President Bush to
invoke a unilateral moratorium on weapons sales to the Middle East
while he pursues longer-term efforts to curb the arms flow from all
sources. The proliferation of weapons "poses a serious threat to
peace" in the region and squanders resources badly needed for
economic development, the group wrote
In a separate statement, Rep. Gephardt urged Secretary Baker
to use his trip to the Middle East this week to assure leaders
there that the U.S. is willing to lead an arms-control effort.
(AP, Washington Post, A17)
Democrats Seek Halt Of Arms Sales To Mideast
Five key House Democrats led by Rep. Gaphardt called Monday
for a unilateral pause in arms sales to the Middle East --
signalling a likely battle between Congress and the White House
Gephardt said he found support for such a pause during a
recent Middle East trip, including a call for a total ban on future
arms sales to the region from Israeli Defense Minister Arens
Rep. Obey, a co-author of the letter
has urged "a policy
of arms denial to the entire region. But other lawmakers say
allies' security may be at stake if arms sales are denied, along
with the competitiveness of U.S. arms manufacturers
The Bush Administration has straddled the touchy issue.
(Richard Wolf, USA Today, 4A)
LEVY SAYS U.S. BACKS MIDEAST REGIONAL PEACE CONFERENCE
JERUSALEM -- Israeli Foreign Minister Levy said Monday the
U.S. believed a regional peace conference between Israel and Arab
states was possible.
But Secretary Baker urged caution after meeting Levy, saying
details still had to be worked out.
(Jonathan Karp, Reuter)
White House News Summary
Tuesday, April 9, 1991 -- A-7
SECRETARY BAKER MEETS WITH NEWLY POSITIVE SHAMIR
JERUSALEM -- Israel today told the U.S. it was ready to hold
peace talks with the Arabs under American auspices and with the
Soviet Union participating in a regional conference.
Secretary Baker responded positively to the initiative
presented to him by Foreign Minister Levy. And yet, Baker said he
wanted to talk to Arab leaders before committing the U.S.
government to the proposition
"We have had a very productive and very constructive meeting,"
Baker said after the hour-long session with Levy.
(Barry Schweid, AP)
Israelis Ready For Peace Talks
JERUSALEM -- Israeli leaders will tell Secretary Baker today
they are willing to take part in a regional peace conference with
the Arab states and with a Palestinian delegation that does not
publicly identify itself with the PLO.
Government sources told The Washington Times this is one of
a series of positive answers Baker will receive from Israel as he
seeks a U.S.-brokered Middle East peace.
Israel will agree to negotiate on the basis of U.N. Security
Council Resolutions 242 and 338, which call for withdrawal from
territories seized in the 1967 Six-Day War in exchange for Arab
guarantees of secure borders for Israel.
(Andrew Meisels, Washington Times, A1)
Baker Seeks To Bridge Israeli-Palestinian Gap
JERUSALEM -- Secretary Baker meets Israeli leaders and
Palestinians in Jerusalem Tuesday on a second mission aimed at
keeping alive Washington's drive for an Arab-Israeli peace
settlement
Foreign Minister Levy said Israel would accept a regional
peace conference if the opening session was followed by bilateral
talks between Israel and individual Arab states. In Tunis, a
senior PLO official said Palestinians meeting Baker would tell him
plans for such a regional conference were unacceptable
"There is a readiness, even a desire, to talk to Arabs from
Judea, Samaria [the West Bank] and Gaza who are not a PLO
delegation," Justice Minister Meridor, a confidant of Prime
Minister Shamir, said Monday.
(Jonathan Karp, Reuter)
PLO READY FOR TALKS WITH ISRAEL AT U.N., ARAFAT SAYS
LONDON -- The PLO is ready to talk with Israel "under the
United Nations flag," PLO Chairman Arafat said in an interview
broadcast Tuesday
"Security Council can play this role of an international
conference,' Arafat told BBC television news. On the possibnility
of separate peace agreements with Israel as a way of building
confidence between Arab states and Israel as an initial step,
Arafat replied: "No, this will not work."
(Reuter)
-
White House News Summary
Tuesday, April 9, 1991 -- A-8
PALESTINIAN DISSIDENTS OFFER TO REJOIN PLO
DAMASCUS -- Three dissident Palestinian groups Monday offered
to rejoin Yasser Arafat's PLO, abandoning an eight-year effort to
topple his leadership and opening the way for a possible
reconciliation between Arafat and Syria.
(Mona Ziade, Washington Times, A8)
1,000 ARAB PRISONERS ARE FREED BY ISRAEL AS BAKER VISIT BEGINS
JERUSALEM -- Israel announced the release of more than 1,000
Palestinian prisoners today and launched a new tax-initiative
program to stimulate economic development in the occupied Gaza
Strip in apparent gestures of goodwill as Secretary Baker arrived
to pursue a new Arab-Israeli peace initiative.
At the same time, the government signalled it would continue
its tough line on such key diplomatic issues as negotiations with
Palestinians in Israeli-occupied territories and U.N. Security
Council resolutions calling for withdrawal from those lands.
Government officials said Israel is prepared to consider
proposals for a regional peace conference of Middle East states on
condition that the U.S. first provide Israel with bilateral
assurances about the structure and procedures of such a conference.
But they said they would not agree to endorse the principle of
trading occupied land for peace in advance of any negotiations, as
demanded by Arab states. (Jackson Diehl, Washington Post, A17)
U.S. TO CUT DEEPER INTO ITS FORCES IN EUROPE
U.S. military forces in Europe will be reduced by at least
80,000 more troops than initially announced by the Bush
Administration, according to U.S. officials.
The Pentagon first said troop levels in Europe would be
slashed from 306,000 to 230,000 but now officials say the
additional cuts of 80,000 would leave a force of 150,000
The German newspaper Welt am Sonntag reported Sunday that the
troops reductions would total more than 170,000. But U.S.
officials said privately the reductions would not be that large
"There will probably be a total of 150,000 air and land forces
in Europe, unless Congress forces the number to go lower," said one
U.S. official.
(Bill Gertz, Washington Times, A3)
POWELL SAYS U.S. IS 'RUNNING OUT OF DEMONS'
Gen. Colin Powell said in an interview published Monday that
the Gulf War has made it safer to cut the U.S. military budget.
"Think hard about it," Powell told the Army Times newspaper.
"I'm running out of demons. I'm running out of villains. I'm down
to Castro and Kim Il Sung, he said
Powell also said he would be "very surprised if another Iraq
occurred. Iraq has spent somewhere in the neighborhood of $50 or
$60 billion over the past 10 or 12 years. Whether that kind of
wealth is around and whether anybody wishes to invest that wealth
in hardware for war is unlikely.
Even after the next five years of budget cuts, Powell said,
the U.S. military would still be able to win a war on the scale of
the conflict with Iraq, though it would be "a longer and much more
difficult process."
(Fred Kaplan, Boston Globe)
White House News Summary
Tuesday, April 9, 1991 -- A-9
PRESSURE RISES FOR GORBACHEV TO LEAVE OFFICE
MOSCOW -- Soviet conservatives and radical coal miners are
stepping up pressure on President Gorbachev, creating a broad front
of conflicting political forces -- all calling for the Kremlin
leader's resignation.
Leaders of Soyuz, the conservative faction of the national
legislature, met with Gorbachev Sunday and told him they were
petitioning for an extraordinary session of the full parliament,
the Congress of Peoples Deputies. One of the Soyuz leaders,
Yevgeni Kogan, said in an interview that such a session might well
demand a vote of no-confidence in Gorbachev.
(David Remnick, Washington Post, A15)
GEORGIAN PARLIAMENT APPROVES INDEPENDENCE DECREE
MOSCOW -- Parliament in the Soviet republic of Georgia Tuesday
approved an independence decree presented by President
Gamsakhurdia, journalists in the capital Tbilisi said. The
journalists, speaking from the parliament, said the vote was
unanimous. It was followed by scenes of rejoicing on the streets
with swarming crowds and people honking their car horns. (Reuter)
EDITOR'S NOTE: "In Soviet Georgia, A Strike Threat," by Francis
Cline, appears in The New York Times, page A6.
U.S. TO OFFER INCENTIVES FOR VIETNAM TIES
The Bush Administration has decided to launch a major
diplomatic initiative toward Vietnam, offering America's former
wartime adversary a series of trade and economic benefits and new
steps toward normalization of relations if Vietnam helps to bring
about a quick peace settlement in Cambodia, U.S. sources say.
As one sign of the Administration's seriousness about possible
diplomatic recognition of Hanoi, a senior Administration official
confirmed Monday that in August, a small group of State Department
foreign service officers will begin yearlong training in the
Vietnamese and Khmer languages
"The Administration would like to lay that [Vietnam] era to
rest," one senior Administration official told The Los Angeles
Times Monday. "What the Administration is trying to do is to give
Hanoi and Phnom Penh every incentive to cooperate."
Assistant Secretary of State Solomon is expected to present
the U.S. proposals to Trinh Xuan Lang, Vietnamese ambassador to the
U.N., in New York today and to outline them on Capitol Hill in
testimony Wednesday. One Administration official said that the new
U.S. initiative will amount to "a road map" detailing exactly what
benefits Vietnam will obtain from a Cambodian peace settlement.
(Jim Mann, Los Angeles Times, A1)
PANAMA'S RULING COALITION SPLINTERED BY PRESIDENT
PANAMA CITY -- President Endara tore apart his U.S. -backed
coalition government Monday, firing five cabinet ministers whom he
accused of arrogance and political disloyalty.
Endara also fired the head of the National Police amid
allegations by government investigators that a special police
office was spying on the president and his family.
(Reuter)
-
White House News Summary
Tuesday, April 9, 1991 -- A-10
UP TO 200 DISENCHANTED CONTRAS TAKE UP ARMS AGAIN
AGUASMARIAS, Nicaragua -- A small band of demobilized contras,
resentful over their plight in the first year of peace, have picked
up assault rifles and resumed their lives as roving guerrillas in
the rugged mountains of northern Nicaragua.
The guerrillas, baptized the "re-contra" by local peasants,
number 150 to 200 in several contingents, according to farmers,
human rights activists and senior officials in Managua
"I want to say to the president [Chamorro], get the Sandinista
National Liberation Front out of here or we will go back to war,"
declared Jose Oliva Herrera. (Edward Cody, Washington Post, A15)
EDITOR'S NOTES: "Autopsy Disputed In Death of Contra," by Bill
Gertz, appears in The Washington Times, page A3.
"Aide's Resignation May Cripple Kaifu," by Tetsuo Jimbo, appears
in The Washington Times, page A7.
"Hungary's Embassy Squabble," by Peter Maass, appears in The
Washington Post, page C1.
###
NATIONAL NEWS
REDIRECTING THE BUDGET -- WITHIN LIMITS
Panetta Cites Needs Of 'Working Families'
House Democratic leaders, forced to operate within the narrow
confines of last year's budget agreement with the Bush
Administration, Monday began peddling their version of the $1.4
trillion fiscal 1992 spending plan as a budget that meets "the
needs of America's working families.
"
"This is a budget aimed directly at the needs of America's
working people and working families, said Rep. Panetta, arguing
that the Democratic plan would eliminate many of the more draconian
cuts proposed by the Administration and more fully fund programs
in the areas of education, health, nutrition, drug abuse
prevention, energy and economic competitiveness.
"When it comes to fairness, when it comes to investment, when
it comes to working families, this budget makes a difference,"
Panetta argued.
(Tom Kenworthy, Washington Post, A19)
Panetta Has Alternate Budget
House Budget Committee Chairman Panetta proposed an
alternative Monday to President Bush's $1.45 trillion budget that
would keep the same bottom line but shift priorities to spend more
on education, health care and energy programs.
The package would significantly reduce Bush's requested
increase in space spending as well as impose an across-the-board
1 percent cut on an undisclosed number of federal agencies
Panetta will present his budget to the full committee today
in hopes of a vote by the end of the day. The full House could
then consider it next week, he said.
Rep. William Thomas, the third-ranking Republican on the
committee, told reporters Panetta's proposals are unrealistic
because they fail to specify where cuts will take place.
(J. Jennings Moss, Washington Times, A4)
Democrat's Budget Plan Assures Conflict With Bush
The House Budget Committee chairman unveiled today a budget
for the next fiscal year that calls for more spending on social
programs than President Bush had proposed, virtually assuring the
first of many confrontations over domestic priorities after
Congress returns Tuesday
"Within the constraints of the budget agreement," Rep. Panetta
said, "we have the opportunity, albeit gradually and incrementally,
to try to direct this nation away from the policies of the '80's
that hurt our greatest resources, the working men and women in this
society."
Rep. William Thomas countered that Panetta's proposal
contained "fairly trivial" differences from the Administration
plan. But he criticized Panetta for not being more specific about
where he would make cuts. "You only get the feel-good stuff,"
Thomas said. "the President bit the bullet and put those in his
program; the Democrats have not."
(Richard Berke, New York Times, A16)
-erom-
White House News Summary
Tuesday, April 9, 1991 -- A-12
SENATORS FIGHTING OVER NEW LOOPHOLE
AFFECTING SOCIAL SECURITY FUND
A loophole that was created in last year's budget deal leaves
the $200 billion Social Security trust fund vulnerable to being
raided, Sen. Domenici said Monday.
However, some Senate Democrats say the loophole, which they
don't deny putting into the budget, is instead aimed at making it
easier to cut the Social Security payroll tax
Domenici is introducing legislation to rebuild the
"firewall" that is supposed to protect the trust fund's revenue
calculations from being tampered with during debate on the budget
unless a "super-majority" of 60 senators agrees.
(Elaine Povich, Chicago Tribune)
EDITOR'S NOTE: "Congressional Democrats Start To Steer A Course
Toward More Confrontation, Less Compromise," by Jeffrey Birnbaum,
appears in The Wall Street Journal, page A24.
STATES' VERSION OF BUSH'S 'NEW FEDERALISM'
Governors, Legislators Unveil Their Plan
To Fold Domestic Programs Into Block Grants
Governors and state legislators came up Monday with their
version of a Bush Administration plan to fold billions of dollars
in domestic programs into a handful of block grants. Their
response to one of the President's highlighted 1991 initiatives
drew cheers from the White House but still faces an uphill fight
in Congress
Omitted from both the National Governors Association and the
National Conference of State Legislatures versions were the $3
billion Community Development Block Grant and another $4 billion
worth of subsidized housing programs that the Administration
initially had included on its list of "potential" programs for the
new block grants
The NGA and NCSL spokesmen set two major conditions on support
for the plan: The Administration and Congress must agree in
advance to maintain spending on the affected programs for the next
five years and not change distribution formulas to the disadvantage
of any state.
(David Broder, Washington Post, A19)
EDITOR'S NOTE: "States, Following Bush Plan, Ask Congress To
Consolidate U.S. Aid," by Gwen Ifill, appears in The New York
Times, page A21.
FEDERAL OFFICIALS VOW TO CLEAN UP
FRAUD-RIDDEN STUDENT LOAN PROGRAM
Federal officials pledged Monday to dramatically improve their
management of Guaranteed Student Loans -- an $11 billion college
aid program fraught with fraud, abuse and loan defaults that have
soared nearly 17-fold in a decade
Schools with default rates above 35 percent three years in a
row will be cut off from the program in July -- unless they can
prove "mitigating circumstances" were at fault
"We are serious and we are aggressive,' said Ted Sanders,
deputy secretary of education. (Mary Ann Roser, Knight-Ridder)
-erom-
White House News Summary
Tuesday, April 9, 1991 -- A-13
U.S. Plans Crackdown On Student Loans
In an effort to cut down on the growing number of student loan
defaults, the Administration Monday announced a new plan to
restructure the Education Department's student financial aid
programs
The recommendations were suggested in a report by an
Education Department and Office of Management and Budget team
"We applaud what the Secretary has done here today," said
Frank Hodsol, OMB executive associate director. He added that the
suggested changes "will result in real progress in the student loan
program."
(Holly Hacker, Los Angeles Times, A7)
STUDY: U.S. RANKS 12TH IN EDUCATION SPENDING
A study by the American Federation of Teachers released Monday
shows 11 other industrialized nations spend more than the U.S. on
students. "This study lays to rest the myth that the United States
spends more than other nations. No matter how you measure it, our
investment falls short of being number one," said Albert Shanker,
president of the teachers' union.
The
study
noted 4.7 percent of U.S. GNP is devoted for
education, compared with a 15-country average of 5.4 percent
The study also found that American classrooms are among the most
crowded of the 15 countries studied, with the fourth-highest pupil-
teacher ratio of 19 children for every teacher. (Janet Bass, UPI)
U.S. Ranks Low In School Spending
NEW YORK -- By nearly any measure, the U.S. is being outspent
in education by other industrialized powers, an AFT union study
finds
The report analyzed data gathered by the Organization
for Economic Cooperation and Development, the U.S. Education
department and UNESCO
Ted Sanders, deputy education secretary, said of the survey,
"It's time we stopped reaching for new statistics to suggest that
we are not spending enough on education. In fact, education
spending increased 30 percent overall during the 1980s," he said.
"The emphasis now must be on accountability and achievement, not
bookkeeping."
(Lee Mitgang, AP)
EDUCATION DEPT. IN HIGH GEAR
If the Education Department seemed to move in slow motion
under Lauro Cavazos, the maligned agency has shifted into fast
forward since Lamar Alexander succeeded him as Education Secretary
three weeks ago. In that brief period Alexander has moved
to
quell a controversy over minority scholarships, assemble a top
management team with some star quality and win White House approval
of an education agenda that claims to redefine the public school.
Monday he announced steps to attack the department's biggest
financial problem, its poor management of student loan programs.
What is unclear is whether all the activity will result in
educational progress. There are clear political reasons behind
Alexander's bustle
Next week, President Bush is expected to
embrace Alexander's agenda, cast it as "revolutionary reform" and
use the proposals, in the words of one official, to "inoculate us
against charges we have no domestic agenda."
(News analysis, Kenneth Cooper, Washington Post, A1)
White House News Summary
Tuesday, April 9, 1991 -- A-14
Alexander Begins Reign With A Flurry Of Activity
As the 1992 election season draws nearer, newly appointed
Secretary of Education Lamar Alexander is moving quickly to help
President Bush fulfill a promise he made in the 1988 campaign but
then largely ignored: Bush's VOW to become the nation's "Education
President."
In just a few short weeks -- starting even before he won
Senate confirmation -- Alexander has cleared out most of the senior
Education department officials loyal to Lauro Cavazos. He has
replaced them with his own, more action-oriented team. Alexander
has also put together a new education agenda that includes a
controversial proposal for instituting national achievement tests
and more emphasis on adult learning and training for the work
force. Bush himself is expected to unveil the package next week.
The galloping start has drawn favorable attention from some
of the Administration's harshest critics, including Rep. George
Miller, a member of the House Education Committee.
"These people have the ability and they also have the
background to engage these issues as well as any group of people
we've seen in a long time," Miller said recently. And Keith
Geiger, president of the National Education Association, who has
often been at odds with Alexander in the past, says "I'm pleased"
with the new official's initial moves in Washington
"You're not going to see in the rest of this Administration
some new commitment to funding, says Robert Hochstein, an official
of the Carnegie Foundation for the Advancement of Teaching. "It's
just not in the cards."
Even so, campaign strategists predict that the politically
attuned Alexander at least will be able to polish Bush's tarnished
image in the field. "I think these people are going to stir the
pot," Rep. Miller asserts. (Karen Tumulty, Los Angeles Times, A12)
LIFE EXPECTANCY OF BLACK MALES FALLS TO 64.9
Rising Murder Rate, AIDS Seen As Factors
The life expectancy of black males continued its striking
decline in 1988, according to statistics released Monday by federal
health officials.
In his annual report on the health of U.S. residents,
Secretary Sullivan reported "sobering news" of how AIDS and rising
homicide rates have cut the average lifespan of black males to 64.9
years -- its lowest point since 1981. It was 65.2 in 1987.
By comparison, life expectancy for other major groups
lengthened for the most part during the 1980s
Sullivan outlined several initiatives he hopes to take in the
coming months to tackle minority health problems. Among them are
extending early care to children, focusing prevention education
programs on members of minority groups, and expanding the
availability of health professionals for understaffed areas.
But, he said, "the government can only do so much.'
(Malcolm Gladwell, Washington Post, A5)
-
White House News Summary
Tuesday, April 9, 1991 -- A-15
U.S. TO SIMPLIFY INSURANCE PLANS FOR THE ELDERLY
In a move to protect consumers and reduce confusion among the
elderly, the nation's insurance commissioners have chosen nine
private health insurance policies to supplement coverage provided
by the federal government through Medicare. They will soon replace
the bewildering jumble of supplemental policies now offered in the
private market.
The nine alternatives would greatly simplify the choice for
an elderly person seeking private "Medigap" insurance
Under a new federal law, signed by President Bush in November,
insurers will be forbidden to offer Medigap policies other than
those designed and approved by the commissioners.
(Robert Pear, New York Times, A1)
TROUBLED COURT NOMINEE GIVEN A BOOST
As Vote Nears, Justice Department
Points To Ryskamp Work With Minorities
The Justice Department is attempting to bolster the troubled
federal appeals court nomination of Kenneth Ryskamp, pointing to
his support of a minority church and other religious work as
evidence of his racial tolerance.
Meanwhile, two Hispanic groups, citing Ryskamp's remarks about
Cuban Americans, have joined the organizations lobbying against
him. The Senate Judiciary Committee is scheduled to vote. Thursday
on whether to elevate the Miami federal district judge to the 11th
U.S. Circuit Court of Appeals.
Justice Department officials claim opponents are crucifying
Ryskamp for verbal missteps instead of judging him by his
actions
[However], Nan Aron, executive director of the
Alliance for Justice, said, "Instead of dispelling doubts at the
[committee's] hearing, his testimony only confirmed them. "
Administration officials were clearly disappointed with Ryskamp's
responses to the senators, saying he "set off alarm bells" instead
of reassuring them.
(Sharon LaFraniere, Washington Post, A19)
Conservatives Won't Go To The Mat For Ryskamp
The Bush Administration has crafted a last-minute rebuttal to
charges that Judge Kenneth Ryskamp is unfit for the federal appeals
bench, but some Senate Judiciary Committee sources say the effort
may be moot.
"I don't think his chances are good," said one source close
to the Committee.
"It's not one of those things that's going to sail through,"
a second observer said. "It'll either be close or no cigar.
Observers predicted that the Ryskamp nomination might die
because conservatives have not fought for the man as vigorously as
they have for other controversial nominees. "You just don't get
the sense that this guy is somebody to fight a lot over, that he's
going to make or break the future of the 11th Circuit," one
committee source said. "He's not a cutting edge scholar or an
intellectually rigorous conservative."
(Dawn Ceol, Washington Times, A5)
White House News Summary
Tuesday, April 9, 1991 -- A-16
ATTORNEY GENERAL TO ARGUE DEATH PENALTY CASE BEFORE HIGH COURT
Attorney General Thornburgh plans a rare appearance before the
Supreme Court to argue that relatives of murder victims be allowed
to testify before juries considering the death penalty.
Thornburgh is scheduled to make a 10-minute argument on April
24 when the high court considers the appeal of a Tennessee death-
row inmate who contends that such "victim-impact" testimony was
improperly admitted in his case.
(James Rowley, AP)
ABSENCE OF MALICE ON WAR VOTE
ASHEVILLE, N.C.
:
The absence of malice toward Sens.
Sanford, Hollings and Fowler during their home-state visits is in
line with national polls indicating that most voters are not likely
to be swayed against lawmakers because of their votes against the
war.
In one of the most recent surveys, pollsters Stanley
Greenberg, a Democrat, and Frederick Steeper, a Republican, found
that 38 percent of voters, mostly Republicans, said late last month
that they would be less likely to reelect someone who voted against
the war. Ten percent said it would make no difference. Only one
in five said the vote would be a major factor in their decision.
"People are resisting using the war vote as a litmus test;
they liked the war and don't want to see it politicized," said
Greenberg.
(Helen Dewar, Washington Post, A4)
NAVY TO PROMOTE CAPTAIN DESPITE HIS REPRIMAND
A captain censured for "deficient performance" because he
downplayed enormous cost overruns in the Navy's stealth fighter
program is being promoted to rear admiral.
In an unusual move that has drawn fire from Congress, Navy
Secretary Garrett is endorsing the promotion of Capt. Lawrence G.
Elberfeld to the rank of rear admiral just months after signing a
letter of censure. Such a letter is "considered grave within the
naval service," Garrett acknowledged in replying to a congressional
query
Rep. Ireland has led the attack on Capt. Elberfeld's
promotion, claiming the move signals that mismanagement is rewarded
in the service. He said the promotion has created a "serious
morale problem among the captain ranks." Ireland also charged that
the Pentagon has punished lower-level officials who tried to warn
the service that the A-12 program was suffering cost overruns and
schedule delays at a time when Capt. Elberfeld claimed the program
was on schedule and at cost. (Paul Bedard, Washington Times, A3)
Navy Head, Reversing Himself, Concedes He Got Early Word On A-12
Cost Overrun
Navy Secretary Garrett, contrary to his public statements,
received early warnings about huge financial and technical problems
afflicting the ill-fated A-12 attack plane, according to Pentagon
documents and congressional investigators.
(Andy Pasztor, Wall Street Journal, A24)
-more-
White House News Summary
Tuesday, April 9, 1991 -- A-17
FAMILIES TO SEEK DAMAGES IN IOWA SHIP BLAST
MIAMI -- Families of sailors who died in the 1989 USS Iowa
battleship blast will seek up to $2.35 billion in damages, alleging
negligence and a coverup by the U.S. Navy, their lawyer said
Monday. "The Navy has covered up the cause of the explosion and
they continue to cover up," said Miami attorney Ellis Rubin
If the Navy denies the damage claims, Rubin said he will file a
lawsuit in Washington and attempt to overturn the so-called Ferres
doctrine, which since the 1950s has blocked servicemen or their
families from suing the government. (Reuter, Washington Post, A8)
BUSH, REPUBLICAN WHO'S WHO SAY FAREWELL TO TOWER
DALLAS -- President Bush headed up a who's who of the
Republican Party at Monday's memorial tribute to former Texas Sen.
John Tower and his daughter, victims of a Georgia commuter plane
crash that killed 23 people.
Bush, his wife Barbara and their son, George W., were among
an estimated 1,000 mourners who attended the hour-long memorial
service
Bush also was accompanied by Secretary Mosbacher and
a number of White House aides, including legislative strategist
Fred McClure, a Texan who said he had known Tower well for 15 years
and who sang "Amazing Grace. "
"The reason we can hail our success in the Persian Gulf is
that he was chairman of the Armed Services Committee in the years
when President Reagan began spending more for defense,' said Sen.
Dole, following the service.
(Phil Magers, UPI)
EDITOR'S NOTE: "President, First Lady On Hand As Mourners Remember
Tower,' by Frank Murray, appears in The Washington Times, page A4.
PRESIDENT BUSH GAMELY OPENS SEASON FOR TEXAS RANGERS
ARLINGTON, Texas -- President Bush, who throws left and bats
right, stepped to the mound Monday evening and threw an off-target
pitch to open the Texas Rangers' baseball season against the
Milwaukee Brewers.
Shaking his head in mock dismay, the President threw up his
hands and jogged off the field to wish the players better luck.
(Kathy Lewis, Dallas Morning News)
EDITOR'S NOTE: "Energy Bill Renews Heated Auto-Mileage Debate,"
by Paul Clancy, appears in USA Today, page 4A.
"Quota' Issue Is A Myth To Scare Off [Civil Rights] Bill
Supporters," interview with two NAACP officials, appears in USA
Today, page 9A.
"Intrigue At The Fed: Open Debate Puts Policy In Question," by
Mark Memmott, appears in USA Today, page 1B.
-End of A-Section-
NETWORK NEWS
Monday evening, April 8
IRAQI REFUGEES
ABC's Peter Jennings: There's nothing like first-hand reporting.
The Bush Administration had a chance to see for itself today what
a catastrophe has befallen as many as two million Iraqi Kurds, many
of whom believed the Bush Administration would do more than talk
about their struggle against Saddam Hussein. Secretary Baker went
to the frontier between Turkey and Iraq today to hear in person the
stories of devastation from those who believe they have been
betrayed.
ABC's John McWethy: It may have been just a photo opportunity, but
for a brief moment today Secretary Baker looked into the faces of
desperation that make up the tidal wave of Iraqi refugees fleeing
from Saddam Hussein's troops.
(Secretary Baker: "You look at this and you can't help but
believe, I think, that it's nothing less than a crime against
humanity."
In a 12-minute visit to a mountain pass that officials told Baker
was just a few feet inside Iraqi territory, the secretary saw
first-hand one of the bitter consequences of the Bush
Administration decision not to destroy all of Saddam Hussein's
military and not to help the rebels. Refugees harassed by the
Iraqi army in the long march to get here are now clinging to life
on the barren slopes of the mountain. Every night hundreds are
dying in the cold, mostly children and old people.
(Iraqi refugee shouting to Secretary Baker: "I want to come talk
to you. We have a lot of difficulties here. I want to talk to
you, please! If you'll only hear me.)
This man walked nearly 100 miles from the Iraqi city of Kirkuk with
17 members of his extended family.
(Refugee talking with Baker: "Our children are suffering from
hunger and starvation. So you've got to make for us something, to
help us.
Baker to refugee: "We know that. You need food, you need
clothing, you need tents, you need everything.
Refugee: "We need enough food. Some people don't want to stay
here. They want to go abroad. This is more a delay point for some
people here.")
The refugees say they cannot go home as long as Saddam Hussein is
in power. What Baker would not tell them is that no one wants to
take them. The crossing points here in Turkey have become the only
way out for hundreds of thousands of Kurds fleeing for their lives.
Though the Bush Administration was slow to recognize the proportion
of the human disaster now building on this border, Baker said he
now knows that a massive international effort must be launched to
help. Meantime the Kurds, some of whom blame the Bush
Administration for encouraging them to fight, continue to live and
die in limbo on the border.
ABC's Sheila MacVicar and Forrest Sawyer report on the plight of
the refugees at the Turkish and Iranian borders. -more-
White House News Summary
Tuesday, April 9, 1991 -- B-2
Jennings: The leaders of the EC voted today to send $180 million
in emergency aid to the Kurdish rebels. They also asked the
Security Council to create an enclave in northern Iraq to protect
the Kurds from Saddam Hussein's army.
(ABC-Lead)
NBC's Tom Brokaw: The U.S. has a very great moral responsibility
to the Kurds; that from an official of the Red Cross as he
struggled to ease the anguish of Kurdish refugees who first fought
Saddam Hussein, now are fighting for their lives. This human
tragedy on a grand scale is playing out in Iraq, Iran and Turkey.
ABC's John Dancy: Jim Baker saw the human cost of the war today.
Baker was actually inside Iraq as he visited a desolate camp to
call for an international effort to help the refugees streaming
across the border by the thousands each day to camps like this.
Many of these people walked 10 days to get to this rocky field
through the surrounding circuit of mountains -- women, children,
old people. They were under attack by Saddam Hussein's planes and
helicopters as they fled.
(Iraqi refugee shouting to Secretary Baker: "I want to talk to you
please! If you'll only hear me.")
An English-speaking man in the crowd told Baker that people are
desperate.
(Refugee: "We don't have enough water supply here, you see. This
is the first thing. The second thing, that we need doctors, we
need medicines. We need enough food.
Baker to refugee: "The Turkish government has been as generous as
they can be. They've opened their borders, they've given what they
can give, but it's up to the international community as a whole to
do something about this tragic crime against humanity. And that
is what we intend to do.")
Baker's trip was to see, but also to be seen. He learned little
that the American Embassy could not have told him and stayed at the
site less than six minutes. But he has now seen the misery for
himself and that gave a personal intensity to his call for an
international relief effort. From Turkey, Baker flew to Jerusalem
tonight for the second part of his mission, which is to try to push
the Middle East peace process forward. No obvious signs of
optimism yet.
(NBC-Lead)
CBS's Dan Rather: Secretary Baker got a close-up look today at the
suffering and the anger of Iragi refugees fleeing the revenge of
Saddam Hussein.
CBS's Bill Plante: Three-hundred thousand refugees from Iraq are
waiting along the Turkish border, their number expected to double
within the week. They are here because the U.S. allowed Saddam
Hussein to win his civil war. Today, some of them had a chance to
tell the secretary of state that they don't understand why
President Bush didn't go after Saddam.
(Refugee: "I wish he had finished him. He just left him there and
now he's doing it.")
But after the meeting there were smiles because Baker had promised
help. Then the secretary was taken up a steep, winding road right
to the border where the scope of the tragedy was clear -- tens of
thousands of men, women and children in the open mountains without
food, medicine or sanitation.
-more-
White House News Summary
Tuesday, April 9, 1991 -- B-3
Plante continues: This is the situation that has been building up
here on the border for more than a week now, long before the Bush
Administration took official notice of it and sent Secretary Baker
to see for himself
Baker placed the blame squarely on Saddam
Hussein.
(Baker: "You look at this and you can't help but believe, I think,
that it's nothing less than a crime against humanity.")
There were more appeals and letters for Baker, but after just six
minutes in this friendly but uncontrolled crowd, nervous security
officials ended the visit. Baker's trip is intended to deflect
criticism of the U.S. for standing by and doing nothing during the
Iraqi civil war now that the consequences have become far worse
than anyone anticipated.
Rather: Kurdish rebel sources say Iraqi helicopter gunships
attacked refugees trying to escape to Turkey and Iran today. They
say thousands were killed or wounded. These reports have not been
confirmed. So far no one is doing anything to protect refugees
inside Iraq from Saddam's continuing wrath.
CBS's Allen Pizzey reports from a refugee camp on the Iraqi side
of the border: These Iraqi Kurds think they are different than
other victims of war and politics. They feel they've been
betrayed.
(Abdullah Sadki, Kurdish medical worker: "Everybody here feels
that the suffering is -- is a victim of American policy.
If America had backed their revolt, they say, they wouldn't be
here, stuck on the edge of the river that separates Iraq from
Turkey, not allowed to cross and fearful of still being on Iraqi
soil. Refugees who knew Secretary Baker was in the area said they
wanted to see him, to ask why America had abandoned them. Many
said they believed President Bush was sincere in wanting a new
world order. But they don't understand why their lives have come
to this. What these people want most right now is to get out of
Iraq. "The Americans say if we stay in Iraq they'll bring us
food," one man said. "But what if Saddam Hussein brings us bombs?
What will George Bush do for us then?"
(CBS-Lead)
PALESTINIANS
Jennings reports that the Israelis released 1,000 Palestinians from
prison today, which coincided with a visit by Secretary Baker.
There are still 9,000 Palestinians being held, half of them either
not charged with any crimes or not yet put on trial.
ABC's Dean Reynolds reports on restless Palestinians tiring of
taking orders from leaders in exile.
(ABC-7, CBS-2)
GERMANY/POLAND
CBS's Tom Fenton reports that there was tension between Germans and
Poles as Poles crossed over to visit Germany. Racism is being
fueled by the staggering unemployment that the collapse of
communism has brought to Eastern Europe.
(CBS-3, ABC-9)
"more-
White House News Summary
Tuesday, April 9, 1991 -- B-4
AMERICAN HEALTH REPORT
Jennings: The federal government [National Institutes of Health]
released its annual report on the health of Americans. On infant
mortality, the biggest overall drop in a decade. Although when you
break it down, minority babies are still dying at twice the rate
of white babies. On AIDS, a 20 percent increase in the number of
those infected with the virus that can cause AIDS. The number of
deaths from heart disease continues to go down, although it is
still America's number one killer. To lower that number, the
government now says we need to keep a closer eye on many more
children.
(ABC-3)
NBC's Robert Hager reports that doctors appointed by the National
Institutes of Health warned today that kids, like adults, need to
be careful about cholesterol.
(NBC-4, CBS-4)
RAPE
NBC's Andrea Mitchell reports that proposed federal legislation
would not allow defense lawyers to treat rape victims like
criminals.
(Sen. Biden: "How a woman is walking, how provocative she appears,
is totally irrelevant. No man has any right under any
circumstances to lay a hand on a woman without her permission,
period.")
The legislation would also double the penalties for rape, define
rape as a hate crime so women could sue for damages, and authorize
money for treatment and prevention.
(NBC-8)
ATLANTIS
ABC's Jim Slade reports that the shuttle astronauts spent more than
five hours outside the shuttle this afternoon testing
transportation jets -- trying to find a way to move astronauts
around so they can work on the exterior of a future space station
without using all their energy.
(ABC-2, NBC-3, CBS-8)
POLICE CHIEF GATES
Jennings reports that today a Superior Court judge ordered that Los
Angeles Police Chief Gates be put back in charge of the department
until later this month when the court will hold a full hearing.
(ABC-4, NBC-7, CBS-7)
NANCY REAGAN BIOGRAPHY
Brokaw reports that Kitty Kelley's unauthorized biography on Nancy
Reagan hit the stores today and sold 90,000 copies by noon.
(NBC-2, ABC-10, CBS-11)
-end of News Summary-
Presidential Phone Calls
6 19
6
DATE 4-9-91
TIME:
incoming/outgoing
WITH
Bill Frenzel 797-6086
SUBJECT Deputy at USTR (Ambassodor)
D provised her set down
tomorrow suth her + Jules
Bush Presidential Library Photocopy
FOLLOW.UP:
I called Carla
Bush Library Photocopy
George Bush Handwriting
Presidential Phone Calls
2
DATE: 4-9
TIME: 1145 45
incoming/outgoing
WITH:
Tenn Lacy
SUBJECT
Told Tenn to report
not by catigory limits
but report in ditail
Bush Presidential Library Photocopy
FOLLOW UP:
Bush Library Photocopy
George Bush Handwriting
Sir:
1. Laurie would like to come over this afternoon to go over the
State Dinner list
She said she can get the movie, In the
Blood by Friday and will have some other options for you.
If o.k. with you, she will come over at 4:15 pm
2. Terri Lacy called. She will be in Washington tomorrow (she's
meeting w/ Boyden Gray at 10:00) Your tax return is ready.
She's available if you need to see her on anything.
Needs to ask you one question on your disclosure report:
your
Last year you listed your assets with the values rounded to the
nearest thousand. Terri said your thinking on this was that the
law would be enacted to require you to do this The law that was
enacted does not require rounding to the nearest thousand
this
week
instead you can use categories
Do you want to round to the nearest thousand as you did last year
or do you want to use categories? She recommends using
categories. Her only concern is that the press might ask why
were you more specific last year?
GUIDANCE:
Bush Presidential Library Photocopy
3. Peggy in Mrs. Bush's office (per Mrs Bush request)
has been talking to Jonathan Bush trying to work out a time
for your mom to come to the White House.
2 options CApril 29 (or 30) to May 2 (or 3)
or
May 6 (or 7) to May 9 (or 10)
any preference?
Bridget
Bush Library Photocopy
George Bush Handwriting
Presidential Phone Calls
DATE: 4-9-91
TIME:
250
incoming/outgoing
WITH:
Al Hairg
SUBJECT
Don't let the madgets
get wou daw- sawe cirtico
NOW that were certicuring you earter
Ib that
I called to thah him
for Luo mard 7th
Bush Presidential Library Photocopy
letter
FOLLOW UP:
Bush Library Photocopy
George Bush Handwriting
THE WHITE HOUSE
WASHINGTON
DATE:
April 5, 1991
(Los Angeles)
FROM THE PRESIDENT
To:
Laurie Firestone
Please invite Al Haig to something
good soon.
4-5-91
THE PRESIDENT
L.A., ,Cal.
Dear Al,
I tried to call
you couly this morning
to thank you For your
March 7th letter that
just surfaced. I am
FROM
THE WHITE HOUSE
WASHINGTON, D.C.
The Honorable Alexander M. Haig, Jr.
President
Worldwide Associates Inc.
1155 Fifteenth Street, N.W., Suite 800
Washington, D.C. 20005
very grateful to you
for That letter and
those genuous counts
Allo well between no- -
and I m happy about that
Wan Regards,
Ombre to Pat
Cy
FROM
THE WHITE HOUSE
WASHINGTON, D.C.
The Honorable Alexander M. Haig, Jr.
President
Worldwide Associates Inc.
1155 Fifteenth Street, N.W., Suite 800
Washington, D.C. 20005
Bush Presidential Library Photocopy
Bush Library Photocopy
George Bush Handwriting
has
GEORGE BUSH
Linda
Be sure this
Mar w
not been annu beenauru
not ment
this today.
Document Originally
Attached to
Following Page
the
2 Oit if
Office of
Alexander M. Haig Jr.
Pres
Worldwide assoc Inc.
Laurie
155 15th St., nw #500
wash 20005
March 7, 1991
The Honorable George Bush
The President of the United States
plear southigh Hard to
The White House
Washington, D.C. 20500
Dear Mr President
As you know, I have remained in fairly close contact
with Brent Scowcroft throughout the Middle East crisis but I
did want you to know on a very personal basis how much I
respect and admire your personal leadership from the very out-
set As one who has witnessed the kinds of pressure that a
President must expect, it is my unshakable conviction that you
alone brought about the victory all Americans are celebrating
today. notwithstanding the superb performance of our Armed
Forces.
Despite past differences, be assured of my profound re-
Bush Presidential Library Photocopy
spect and gratitude for what you have done for our nation and
its people
Respectfully yours,
Bush Library Photocopy
George Bush Handwriting
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
03a. Note
Handwritten notes of Presidential Phone call with President
04/09/91
(b)(1)
Carlos Andes Perez [one page double-sided] (3 pp.)
Collection:
Record Group:
Bush Presidential Records
Office:
Office of the President
Series:
Daily Files
Subseries:
WHORM Cat.:
File Location:
Tuesday, April 9, 1991
Date Closed:
7/5/2012
OA/ID Number:
90591-009
FOIA/SYS Case #:
2009-0166-S
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA)
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
PRM Removed as a personal record misfile.
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
03b. Talking
Points to be Made for Phone Call with Venezuelan President
n.d.
(b)(1)
C
Points
Carlos Perez (3 pp.)
Collection:
Record Group:
Bush Presidential Records
Office:
Office of the President
Series:
Daily Files
Subseries:
WHORM Cat.:
File Location:
Tuesday, April 9, 1991
Date Closed:
7/5/2012
OA/ID Number:
90591-009
FOIA/SYS Case #:
2009-0166-S
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute 1(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA)
personal privacy [(a)(6) of the PRA]
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
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PRM. Removed as a personal record misfile
BUSINESS LEADERS "FAST TRACK" MEETING
THE CABINET ROOM
APRIL 9, 1991, 1:15 P.M.
:
Thank you all for coming to the White House. I
want to especially thank Bill Brock and Bob Strauss
for helping to assemble this impressive group of
trade experts. You all understand what is at stake
here -- how essential "fast track" authority is in
order to forge trade agreements that will eliminate
trade barriers and provide economic growth and
opportunity for all countries involved.
-2-
I know many of you have been working on the
Uruguay Round, and I am grateful for your leader-
ship in that area. We remain committed to the
Round's successful completion. It provides an
opportunity for unprecedented world economic
growth and cooperation. We are equally committed
to pursuing a North American free trade agreement
with Mexico and Canada. However, each of these
essential initiatives is endangered if "fast
track" authority is not granted.
-3-
The economic and social benefits of free trade
in this hemisphere will help to raise the standard
of living in all our countries. In the past few
days, I visited with business leaders from the
Hispanic communities of Los Angeles and Houston.
Mexico and the U.S. share a special heritage --
cultural and family links that we can build on
with the Mexico FTA. The Mexico FTA will bring
new prosperity and new jobs to our countries.
The Hispanic business leaders I met with understand
this and are mobilizing their forces to weigh in
on the Hill in support of "fast track."
-4-
We have every intention to keep Congress informed
of developments in any trade agreement. They are
an active participant in this process. We are
not going to forge a deal that is not in the best
interests of the United States. But, we need
"fast track" to move ahead. Opponents to "fast
track" are opponents of trade between nations --
"fear mongers" who oppose the prosperity that free
trade brings.
--
This group seems to be the "mother of all coali-
tions" on trade issues. We need your help to
assure "fast track" is granted. So let me take
this opportunity to encourage your all-out efforts
on this issue. We need the grass roots working
the Hill, and each of you can bring strong
arguments to Members in support of "fast track"
and free trade.
Patty
THE AMERICAN BUSINESS CONFERENCE
THE DEPARTMENT OF COMMERCE
TUESDAY APRIL 9, 1991
2 P.M.
91 APR -9 PH 12: 08
THANK YOU, BOB, FOR THAT INTRODUCTION AND FOR
LENDING US A MEETING ROOM TODAY. AND I ALSO WANT TO
SALUTE THE AMERICAN BUSINESS CONFERENCE'S LEADER, JIM
JONES. WHAT A JOB HE'S DOING! WE ALSO HAVE SOME HEAVY
HITTERS IN THE FRONT ROW: RICHARD BREEDEN, BILL
SEIDMAN, SEN. DOMENICI.
IT'S ALWAYS GREAT TO TALK TO THE AMERICAN BUSINESS
CONFERENCE. I'VE BEEN HERE FOUR TIMES IN RECENT YEARS,
AND I'VE LANDED AT LEAST TWO OF YOUR LEADERS - -- BOB
MOSBACHER AND ARTHUR LEVITT. //
IT'S AN HONOR AND A PLEASURE TO TALK TO A GROUP
THAT STANDS FOR SUCCESS - -- A GROUP THAT ADMITS ONLY
MEDIUM SIZED COMPANIES THAT THRIVE IN THE MARKETPLACE.
BUT I'VE GOT TO TELL YOU, I FEEL A LITTLE FUNNY
BEING HERE. AFTER ALL, I'M THE CEO OF AN OUTFIT THAT
HAS LOST MONEY FOR 33 OF THE LAST 35 YEARS. //
- 2 -
BUT IN KEEPING WITH TODAY'S THEME -- CHARTING
ECONOMIC GROWTH IN THE 90'S -- I'D LIKE TO TALK ABOUT
THIS ADMINISTRATION'S PLAN FOR GENERATING MORE AMERICAN
SUCCESS STORIES LIKE YOURS./
OUR RECENT SUCCESS IN THE GULF HAS RENEWED
AMERICANS' BELIEF IN THEMSELVES. IN JUST THE PAST
COUPLE OF MONTHS, CONSUMER CONFIDENCE HAS SOARED. THE
STOCK MARKET HAS BEEN CLIMBING TOWARD THE 3,000 MARK.
MOST ECONOMISTS PREDICT THAT THE RECESSION SOON WILL
GIVE WAY TO A NEW CYCLE OF GROWTH.
BUT WE CAN'T REST ON OUR LAURELS: THERE'S AN
ENTIRE WORLD OF COMPETITION OUT THERE. THE
ADMINISTRATION'S ECONOMIC GROWTH PACKAGE IS DESIGNED TO
LET PEOPLE LIKE YOU DO WHAT YOU DO BEST -- CREATE JOBS,
CREATE NEW OPPORTUNITIES, CREATE WEALTH.
LET'S START WITH AN ISSUE WE ALL WILL HAVE TO
ADDRESS IN THE NEXT MONTH, THE ISSUE OF FREE AND FAIR
TRADE.
- 3 -
AS YOU KNOW, I HAVE ASKED CONGRESS TO EXTEND THE
"FAST-TRACK" TRADE AUTHORITY.
FAST-TRACK IS ANOTHER TERM FOR "GOOD FAITH." IT
GUARANTEES THAT CONGRESS WILL ACCEPT OR REJECT THE VERY
SAME AGREEMENTS THAT OUR NEGOTIATORS AND THEIR
COUNTERPARTS HAVE WORKED OUT. THIS DOESN'T WEAKEN
CONGRESS' POWER TO REVIEW AGREEMENTS; IT SIMPLY
PREVENTS ELEVENTH HOUR CHANGES THAT WOULD FORCE
NEGOTIATORS FROM ALL COUNTRIES TO START FROM SCRATCH.
OUR TRADING PARTNERS CONSIDER FAST TRACK A VITAL
TEST OF OUR RELIABILITY. IF WE DO NOT RETAIN THE FAST-
TRACK PROCESS, WE JEOPARDIZE THREE CRITICAL TRADE
INITIATIVES: THE URUGUAY ROUND OF TRADE TALKS, THE
NORTH AMERICAN FREE TRADE AGREEMENT, AND THE ENTERPRISE
FOR THE AMERICAS INITIATIVE.
- 4 -
AMERICANS UNDERSTAND THE BENEFITS OF FREE TRADE.
IN THE LAST FOUR YEARS, EXPORTS FROM THE U.S. HAVE
INCREASED 55 PERCENT, MORE THAN TWICE THE RATE OF
IMPORT GROWTH. AND EXPORT BUSINESS HAS GROWN MORE
RAPIDLY THAT THE REST OF OUR ECONOMY.
THIS TRADE BOOM HAS HELPED EVERYONE INVOLVED. A
NORTH AMERICAN FREE TRADE AGREEMENT WOULD PLACE US IN
THE LARGEST INTEGRATED MARKET ON EARTH: 360 MILLION
PEOPLE, $6 TRILLION OF ANNUAL OUTPUT. IT WOULD ALSO
GIVE OUR NEIGHBORS ACCESS TO THE TECHNOLOGIES AND
PRODUCTS THEY NEED TO IMPROVE THEIR STANDARDS OF LIVING
/ FURTHER CLEAN THEIR ENVIRONMENTS / AND CREATE A TRUE
COMMUNITY OF NATIONS ON OUR CONTINENT.
WE ALSO BELIEVE STRONGLY IN PROMOTING TRADE. I
HAVE ASKED BOB MOSBACHER TO LEAD A GOVERNMENT-WIDE
EFFORT TO HELP SMALL- AND MEDIUM-SIZED COMPANIES SELL
THEIR GOODS AND SERVICES ABROAD.
- 5 -
I KNOW YOU SUPPORT FREE TRADE, WHICH IS WHY I WANT
YOUR HELP IN PERSUADING CONGRESS TO EXTEND THE FAST-
TRACK PROCESS. WITHOUT IT, WE WILL SURRENDER OUR
CHANCE TO SHAPE THE EMERGING WORLD ECONOMY. WITHOUT
IT, WE RISK SETTING OFF THE KIND OF PROTECTIONIST
WARFARE THAT HELPED PRODUCE THE GREAT DEPRESSION. WITH
IT, AMERICAN WORKERS AND BUSINESSES WILL BE ABLE TO
DEMONSTRATE THEIR STRENGTH IN A NEW AND VIBRANT WORLD
MARKET.
THIS BRINGS ME TO A SECOND PART OF OUR GROWTH
PACKAGE: CREATING AN EDUCATED, INNOVATIVE WORKFORCE.
OUR BUDGET EMPHASIZES THE IMPORTANCE OF BUILDING AN
AMERICA THAT IS READY TO TAKE ITS PLACE IN AN EMERGING
WORLD ECONOMY.
IT STRESSES THE ABSOLUTE NECESSITY OF AN EDUCATED
NATION. WE WANT TO REINVENT THE AMERICAN SCHOOL, TO
CREATE A NATION OF STUDENTS, TO MAKE SURE THAT
EDUCATION OFFERS OPPORTUNITY TO EVERYONE.
- 6 -
OUR EDUCATION STRATEGY STARTS WITH SOME OBVIOUS
TRUTHS: THAT SCHOOLS SUCCEED WHEN TEACHERS TEACH,
WHEN PARENTS SUPPORT THE SCHOOLS / WHEN SCHOOLS
ACCEPT HELP FROM PEOPLE WITH SKILLS -- LOCAL
BUSINESSES, COMMUNITY COLLEGES, THAT HUGE POOL OF
UNTAPPED TALENT, OUR RETIREES /
WHEN COMMUNITIES FIGHT HARDER TO RIP DOWN BARRIERS
THAT PREVENT EFFECTIVE TEACHING -- BARRIERS SUCH AS
CRIME, DRUGS AND COMMUNITY INDIFFERENCE.
WE ALSO WANT TO ENCOURAGE ENTREPRENEURSHIP IN
EDUCATION. WE WILL SUPPORT RESEARCH INTO THE BEST
TEACHING METHODS AND TECHNIQUES. WE WANT TO HELP
WORKERS IMPROVE THEIR KNOWLEDGE AND SKILLS. YOUR VITAL
LINK PROGRAM OFFERS A GREAT WAY TO ACHIEVE THIS GOAL.
AND WE WANT TO ENSURE THAT THE AMERICAN PEOPLE ARE THE
BEST EDUCATED, BEST MOTIVATED IN THE WORLD. //
- 7 -
OUR ECONOMIC PROPOSALS ALSO SWEEP AWAY OBSTACLES TO
FREE ENTERPRISE. THEY TRY TO UNLEASH THE POWER OF THE
AMERICAN IMAGINATION.
YOUR ORGANIZATION UNDERSTANDS THAT RUNAWAY
GOVERNMENT SPENDING STEALS OPPORTUNITY FROM PRIVATE
CITIZENS. LAST YEAR'S BUDGET AGREEMENT PLACED REAL AND
STRINGENT CAPS ON CONGRESSIONAL SPENDING. IF CONGRESS
WANTS TO SPEND MORE MONEY ON CERTAIN PROGRAMS, IT WILL
HAVE TO MAKE HARD CHOICES. IT WILL HAVE TO RAISE TAXES
OR TAKE THE MONEY FROM OTHER PROGRAMS.
THIS YEAR, FOR THE FIRST TIME IN YEARS, FEDERAL
SPENDING WILL ACTUALLY INCREASE LESS RAPIDLY THAN
INFLATION. AND I CAN PROMISE YOU THAT IF CONGRESS
SENDS ME SPENDING BILLS THAT BREAK THIS BUDGET, I WILL
SEND THEM BACK -- WITH A VETO MESSAGE! //
- 8 -
BUT WE IN GOVERNMENT MUST DO MORE. AS VICE
PRESIDENT, I HEADED THE TASK FORCE ON REGULATORY
RELIEF. AS PRESIDENT, I REMAIN COMMITTED TO WEEDING
OUT REGULATIONS THAT PREVENT PEOPLE FROM CREATING JOBS
AND OPPORTUNITIES.
LAST YEAR REGULATIONS COST THE ECONOMY AT LEAST
$185 BILLION, OR $1,700 FOR EVERY TAXPAYER. THE
GOVERNMENT GENERATED MORE THAN 5.3 BILLION HOURS OF
PAPERWORK LAST YEAR. THAT'S ENOUGH TO KEEP 2 MILLION
PEOPLE BUSY DOING NOTHING BUT FILLING OUT FORMS.
OUR COUNCIL ON COMPETITIVENESS, CHAIRED BY THE VICE
PRESIDENT, ATTACKS THE SCOURGE OF UNNECESSARY
REGULATION. WE WANT TO LET PEOPLE TURN THEIR ATTENTION
TO THE MORE IMPORTANT AND REWARDING WORK OF BUILDING A
PROSPEROUS FUTURE.
WE HAVE FOLLOWED THE SAME APPROACH IN LOOKING AT
OUR TAX CODE. WE WANT A TAX SYSTEM THAT REWARDS
ENTERPRISE. I HAVE REPEATEDLY ASKED CONGRESS TO CUT
OUR HIGH CAPITAL GAINS TAX.
- 9 -
I CAN'T THINK OF ANY ISSUE THAT'S BEEN MORE BADLY
MISREPRESENTED THAN THIS ONE. OUR CRITICS SAY A
CAPITAL GAINS CUT HELPS ONLY THE RICH. THEY'RE DEAD
WRONG.
HERE ARE THE FACTS: MORE THAN A QUARTER OF ALL
FAMILIES WHO FILE CAPITAL GAINS HAVE ANNUAL INCOMES OF
LESS THAN TWENTY THOUSAND DOLLARS A YEAR. MORE THAN
THREE-QUARTERS OF ALL FAMILIES WHO DECLARED MAKE LESS
THAN MEMBERS OF CONGRESS. A CAPITAL GAINS CUT ISN'T A
SOP TO THE RICH. IT REWARDS PEOPLE WHO TURN GOOD IDEAS
INTO GOODS AND SERVICES THAT PEOPLE NEED.
- 10 -
WHEN TAXES ON ENTREPRENEURSHIP ARE HIGH, INVESTORS
HAVE NO INCENTIVE TO RISK MONEY ON UNTRIED BUSINESSES
AND ENTREPRENEURS. BEFORE CONGRESS CUT THE CAPITAL
GAINS RATE IN 1978, THE POOL FOR START-UP BUSINESSES
HAD VIRTUALLY DRIED UP. AFTER THE CUT, WE EXPERIENCED
AN INVESTMENT BOOM. BETWEEN 1978 AND 1986, THE NUMBER
OF INITIAL PUBLIC OFFERINGS INCREASED NEARLY 1,600
PERCENT, FROM 45 TO 719. THE AMOUNT OF INVESTMENT SEED
MONEY INCREASED A HUNDREDFOLD, FROM $250 MILLION TO
$22-AND-A-HALF BILLION. CAPITAL GAINS PAYMENTS TO THE
FEDERAL GOVERNMENT QUADRUPLED. THIS IS WHAT HAPPENS
WHEN YOU REDUCE THE COST OF CAPITAL.
WE MUST ENCOURAGE SAVINGS AND DISCOURAGE DEBT. FOR
THE PAST FOUR YEARS, WE HAVE TAXED CAPITAL GAINS LIKE
ANY OTHER FORM OF INCOME. AT THE SAME TIME, WE HAVE
ENCOURAGED PEOPLE TO TAKE ON DEBT. NOT SURPRISINGLY,
PEOPLE HAVE BORROWED MORE, INVESTED LESS. HOME EQUITY
LINES OF CREDIT OFFER A PERFECT EXAMPLE. THESE
DEVICES, WHICH LET HOMEOWNERS BORROW AGAINST THEIR
INCREASED HOME VALUES, HAVE NEARLY TRIPLED IN VOLUME
SINCE TAX REFORM.
- 11 -
NO OTHER MAJOR INDUSTRIAL POWER TAXES CAPITAL GAINS
AT NEARLY THE RATE WE DO. GERMANY AND JAPAN ENJOY MUCH
HIGHER SAVINGS AND INVESTMENT RATES IN PART BECAUSE
THEY DON'T PUNISH SUCCESSFUL INVESTMENT.
MY POINT IS SIMPLE: TAXES ON GROWTH ARE TAXES ON
THE AMERICAN DREAM. WE SHOULD CLEAR AWAY OBSTACLES TO
THE AMERICAN DREAM.
SIMILARLY, WE SHOULD FOSTER INNOVATION WHEREVER WE
CAN. OUR BUDGET ADVOCATES INCREASED FEDERAL SUPPORT FOR
RESEARCH AND DEVELOPMENT IN BASIC AND APPLIED SCIENCE.
IT ALSO ENCOURAGES PRIVATE-SECTOR INNOVATION BY
EXTENDING THE RESEARCH AND EXPERIMENTATION TAX CREDIT.
THIS ADMINISTRATION UNDERSTANDS THE POWER OF KNOWLEDGE,
AND WE WANT THE TAX CODE TO REWARD PEOPLE WHO TURN
THEIR BIG DREAMS INTO REVOLUTIONARY NEW GOODS AND
SERVICES.
FINALLY, THIS ADMINISTRATION BELIEVES IN PROTECTING
WORKERS' EARNINGS AND SAVINGS.
- 12 -
OUR BANKING REFORM PROPOSALS TRY TO MODERNIZE THE
LAWS THAT AFFECT OUR BANKING SYSTEM. LET'S FACE IT:
1930'S REGULATIONS AND RESTRICTIONS JUST DON'T CUT IT
IN THE 1990'S. TO PICK JUST ONE EXAMPLE, UNDER OUR
CURRENT LAWS, A CALIFORNIA BANK CAN OPEN A BRANCH IN
BIRMINGHAM, ENGLAND, BUT NOT IN BIRMINGHAM, ALABAMA.
THINK OF THE BANKING SYSTEM AS AN IRRIGATION
NETWORK FOR THE ECONOMY. WHEN IT WORKS PROPERLY, IT
NOURISHES THE SEEDS OF ECONOMIC GROWTH. WHEN IT
DOESN'T, COMPANIES LIKE THE ONES REPRESENTED HERE CAN
WITHER AND DIE.
OUR REFORM PACKAGE TRIES IN A COMPREHENSIVE WAY TO
MAKE OUR BANKING SYSTEM MORE COMPETITIVE, UP-TO-DATE,
SAFE, AND SOUND.
- 13 -
WE ALSO BELIEVE IN PROTECTING RETIREES FROM UNDUE
HARDSHIP. EIGHT YEARS AGO, CONGRESS ADOPTED MEASURES
TO GUARANTEE THE SHORT-TERM SOLVENCY AND LONG-TERM
STABILITY OF THE SOCIAL SECURITY SYSTEM. CONGRESS
SHOULD RESIST ANY TEMPTATION TO UNDERMINE THAT
STABILITY BY PERMITTING RAIDS ON THE TRUST FUND
BALANCES. WE NEED TO HONOR OUR PROMISES TO WORKERS AND
RETIREES.
I KNOW I HAVE COVERED A LOT OF GROUND TODAY, BUT I
WANTED TO MAKE A POINT: OUR GROWTH PACKAGE ADDRESSES
THE CHALLENGES POSED BY A NEW / EXCITING / RAPIDLY
CHANGING WORLD. OUR THEMES:
WE WANT TO PROMOTE GROWTH.
WE WANT TO CREATE JOBS FOR ALL AMERICANS.
WE WANT TO UNLEASH THE POWER OF AMERICAN
IMAGINATION.
- 14 -
WE WANT TO IGNITE PEOPLE'S AMBITIONS, RATHER THAN
INCITING THEIR FEARS.
MANY PEOPLE CALL THE 20TH CENTURY "THE AMERICAN
CENTURY." WELL, WE SHOULD NOT BE CONTENT WITH THAT.
THE STUNNING COLLAPSE OF COMMUNISM IN 1989 WAS NO
ACCIDENT. DURING THE 1980'S THE COMMUNIST WORLD LEARNED
THAT NO WALL, NO BARRIER CAN FEND OFF POWERFUL IDEAS.
IT SAW OUR PROSPERITY AND OUR VITALITY. IT SAW THAT
OUR WAY IS BETTER. THE PROSPERITY OF THE 1980'S --
WHICH BEGAN WITH TAX CUTS AND PRO-GROWTH POLICIES IN
THE UNITED STATES -- TRANSFORMED THE WORLD.
OUR CHALLENGE NOW IS TO SHAPE THE REVOLUTION WE
STARTED, TO MAKE THE 21ST CENTURY THE NEXT AMERICAN
CENTURY.
I ASK YOUR HELP IN THAT QUEST. TOGETHER, WE CANNOT
FAIL.
THANK YOU, AND GOD BLESS THIS GREAT NATION.
#
#
#
BUSINESS LEADERS "FAST TRACK" MEETING
THE CABINET ROOM
APRIL 9, 1991, 1:15 P.M.
-- Thank you all for coming to the White House. I
want to especially thank Bill Brock and Bob Strauss
for helping to assemble this impressive group of
trade experts. You all understand what is at stake
here -- how essential "fast track" authority is in
order to forge trade agreements that will eliminate
trade barriers and provide economic growth and
opportunity for all countries involved.
-2-
--
I know many of you have been working on the
Uruguay Round, and I am grateful for your leader-
ship in that area. We remain committed to the
Round's successful completion. It provides an
opportunity for unprecedented world economic
growth and cooperation. We are equally committed
to pursuing a North American free trade agreement
with Mexico and Canada. However, each of these
essential initiatives is endangered if "fast
track" authority is not granted.
-3-
The economic and social benefits of free trade
in this hemisphere will help to raise the standard
of living in all our countries. In the past few
days, I visited with business leaders from the
Hispanic communities of Los Angeles and Houston.
Mexico and the U.S. share a special heritage --
cultural and family links that we can build on
with the Mexico FTA. The Mexico FTA will bring
new prosperity and new jobs to our countries.
The Hispanic business leaders I met with understand
this and are mobilizing their forces to weigh in
on the Hill in support of "fast track."
- -4-
We have every intention to keep Congress informed
of developments in any trade agreement. They are
an active participant in this process. We are
not going to forge a deal that is not in the best
interests of the United States. But, we need
"fast track" to move ahead. Opponents to "fast
track" are opponents of trade between nations --
"fear mongers" who oppose the prosperity that free
trade brings.
-- This group seems to be the "mother of all coali-
tions" on trade issues. We need your help to
assure "fast track" is granted. So let me take
this opportunity to encourage your all-out efforts
on this issue. We need the grass roots working
the Hill, and each of you can bring strong
arguments to Members in support of "fast track"
and free trade.
Patty:
FYI. I sent the old
license to Don Rhodes
and asked him to keep
Thanks Thank
it fo the President.
Document Originally
Attached to
Following Page
Bush Presidential Library Photocopy
Bush Library Photocopy
George Bush Handwriting
GEORGE BUSH
P/
AGive old
license
Don on
you save it
New is in
my wallet
to
FROM
THE WHITE HOUSE
WASHINGTON. D.C.
Mr. Robert B. Holt
303 West Wall Street
Suite 2200
Midland, Texas 79701
4-9-91
THE PRESIDENT
Re: = yours of 3-28
Bobby - -
Yes - all's well, our
licenses with picture are
here. Tharlis! Now, who'll
teach me to durve?. !!
All But any
TEXAS DEPARTMENT OF PUBLIC SAFETY
5805 N. LAMAR BLVD. - BOX 4087 - AUSTIN, TEXAS 78773-0001
512/465-2000
- 1
CHALL
#1#
ROBERT
CHAIRMAN B. HOL) Geo- 1
3-28-9
CALVIN R. GUEST
ALBERT B. ALKEK
COMMISSIONERS
Drivza lic / the areat think you
Euclosed is your official Tsx.
OR Bar get carded you will have
the et. I.D. My term Experes
JEB 1997 -So if geen have any
problems -Let urs know
OVER2
Proud of you Sobby
G.R -
you & Ban can throw
your old lic. away B -
From the desk of
George Bush
P
prints
Bush Presidential Library Photocopy
Document Originally
Bush Library Photocopy
Attached to
George Bush Handwriting
Following Page
Bush Library Photocopy
George Bush Handwriting
AMOUNT OF-THE OF. THE
5:00 p.m
THE TREASURY
april 9, 1991
1789
Mr Prendmt
is
gone to Europe and Middle East.
l will he back on Sundy april n.
l line lad Some more thoughts on
on conversation but l enclose a transcript
of an interview with a more from the
University of TEXAS who was recommended by
Lee Ede Jeeta etc as an accurate person.
OVER
2/ The interview has been vetted by Ede for
accuracy and includes too many "I"s but
4 portrays the Collegrates of the 1985-
1988 group. lf Worked: l Thank this
Kind of organization with a WIT
lead 4 needed again.
le light of your dealing with
the press m the Kund l enclose
a guite trom has A. hundred
Bush Presidentia Library Photocopy
INTERVIEW I
DATE:
July 31, 1990
INTERVIEWEE: Nicholas Brady
INTERVIEWER: Michael L. Gillette
PLACE:
Secretary Brady's office, Washington, DC
Tape 1 of 1, Side 1
G:
I would like to begin by asking you to discuss the recruit-
ment of the top-level campaign staff and your role in that
after the 1984 campaign.
B:
Well, you're asking me to go back quite a long way in time,
but I guess my role starts pretty much at the beginning of
the organization that led to the campaign mechanism. Either
the first or second weekend after the 1984 election, the
then-Vice President [George Bush] asked me to come up and
spend the weekend with him and his brother John at Camp
David. President Reagan had gone west after the election.
So we did that. We talked about what the future might hold
and what his plans would be. It was decided--to give a
short summary of the meeting--that we would try to put
together an organization which gave the Vice President a
political base of operations to assist candidates and the
party. At the end of a couple of years, he would then be in
a position to consider and decide whether he might want to
make a run for the presidency. All of that, of course,
[was] within the guidelines of what was allowed by the
election laws.
So I went out and in a period of time talked to Lee
Brady -- I -- 2
Atwater. Obviously, I talked to Jim Baker about who the
right people might be, but he was then still in government
and not available to do any of the work. He gave me some
ideas, and out of that--and a number of other conversations
with people who had intimate knowledge of the political
apparatus in Washington--came an approach to Lee Atwater and
Bob Teeter, who then signed on. We're now talking toward
the end of 1984 and early 1985. Also, contemporaneously
with that effort, Admiral [Daniel J.] Murphy had said that
he wanted to move on, after having been chief of staff for
four years.
So a number of meetings with Atwater and Teeter pro-
duced the chief of staff, who would obviously have to be
integrated into such an operation in a way that was
appropriate: Craig Fuller's name [came up], and we talked
to him. I had not met him; this was really more Lee and
Bob's idea. Murphy then did say he was going to leave. So
we talked to Craig Fuller, and Craig was chosen as the chief
of staff. Obviously the Vice President always had the last
say, but he did ask us to go out and interview various
different people. Of course, he supplied us some names
himself.
G: Was the idea to make OVP [Office of the Vice President] more
self-sufficient?
B: Well, not really. The idea was to provide an organization
outside the OVP which was allowed to conduct political
Brady -- I -- 3
activities that the election laws allow you to conduct.
Yet, given Admiral Murphy's stated intention to leave, [the
idea was to] have somebody in the OVP who was politically
well attuned as well, and of course Craig was, having been
in the White House for the previous four years. He was
actually secretary of the cabinet when we talked to him
about taking the job. So than we had four members of the
so-called G-6, with which I'm sure you're familiar if you've
studied this matter. We obviously had a money-raising
function to perform, and Bob Mosbacher had done an
incredible job of raising money for the Vice President in
the previous campaign, in 1980. So Bob was added to the
group. That made G-6.
Then we added a media consultant. I had worked with
Roger Ailes when I was in the Senate in 1982. The Senator-
ial Trust had some time left over after the 1982 campaign.
So I said that with this time left over I'd like to [spend]
some of [it] with Roger, the idea [being] to get better tuned
--in better shape--[for] public speaking. In the fall after
the 1984 election I did take three or four of those lessons from
Roger and thought he was excellent and that he would fit very
well with the Vice President's style. So I suggested
Brady -- I -- 4
him for the group. That made up the G-6. Now that's time
compaction, because I'm not sure when Bob Mosbacher and when
Roger joined. It may have been in 1985; it may have been in
1986. I'm not sure which.
G: Had Dean Burch ever been a member of G-6 before?
B: Well, Dean certainly would have been, but somewhere--there
again I'm suffering from time compaction--he took on the job
he now holds and/or returned to private practice. Which, I
don't remember; it's sort of all jumbled together in my
mind. But he made it quite clear after the 1984 [?] elec-
tion that he wanted to go back to practicing law. These
meetings of the G-6 took place once a week or two days a
week, and then not for two weeks. But we were back and
forth on the telephone. It did take some time, and Dean
said that he had spent an enormous amount of time during the
campaign and wanted to get back to private practice and/or
in the job he now has, which is--I can't remember the name
of it.
G: Was this collective decision-making structure something that
the Vice President had sought out, or was this something
that took shape?
B: No, I think we all fulfilled different functions so that it
was sort of a collegium, if you will. And one of the things
that was remarkable was how we all got on extraordinarily
well. When it was a four-man group, I can remember one of
Brady -- I -- 5
the first things I did was have all the participants down to
a place I have in the Bahamas. We spent a weekend down
there working half a day and swimming and snorkeling and
doing that kind of thing. We all enjoyed each other's com-
pany, so it not only had a purpose to it, but it was also a
collegial atmosphere. There wasn't a lot of backbiting and
stuff like that. We generally all had the same goal.
G: Why Lee Atwater? He had been with President Reagan in the
1980 campaign.
B: Well, because, from my point of view--I had been a life-long
investment banker with one year in the United States Senate-
-there were some different disciplines that had to be
observed: Lee's was different that Bob [Teeter's], Bob's
was different than mine, mine was different than Bob Mos-
bacher's, Craig's was different than all of that. But all
of them had a function, really. Lee was a brilliant politi-
cal thinker; Bob [Teeter] was a guy who has incredibly good
judgement on matters political, as well as a lot of other
things I've found--and of course he had a business of his
own in Grand Rapids, [Michigan]. Then [we had] Craig and
Bob, for different reasons, but more or less the same. Bob
Mosbacher had enormous experience in money raising. It was
obvious that one of the basic strategies was going to be to
Brady -- I -- 6
raise enough money to fund the Fund for America's Future,
which was the research and think-tank effort that did the
work from 1984-1987.
Then there were other people added, [like] Ede Holiday,
who had been on my staff in the Senate and who had been
executive director of a presidential commission on execu-
tive, legislative, and judicial salaries. [She] had really
run the whole commission in a building not too far from
here. We needed somebody to be the executive talent in the
organization, the make sure that the money was coming in and
that it was spent on a programmed [?] basis. And then [we
added] Rich Bond, because of his knowledge of operations on
the scene in various states: Iowa, New Hampshire, all the
early states. He'd been through that in 1980 and was a
skilled political operative, in terms of the on-the-ground
thing. So it fleshed out that way and then it went on and
on. We got Janet Mullins and a whole bunch of other
talented people involved.
G:
The Bush campaign seems to have gotten a much earlier start
in recruiting personnel and really understanding the
calendar and just being ready for the 1988 election cycle.
Was this something that occupied your time?
B: Sure.
G:
Lining people up early before the campaign?
Brady - I -- 7 --
B: Well, not lining up people so much. These things take an
enormous organizational effort. When you really think about
it, in the group I've outlined to you, which swelled
ultimately to whatever number it was over on Fifteenth
Street, we had a full-blown, professional organization.
There wasn't anything even close to it. That was [accom-
plished] by working on it very hard from early 1985 until
the time it turned into the campaign, ultimately, after the
convention. By the time the convention had taken place, we
had the best well-oiled machine probably in the history of
campaign politics, I would say, in terms of professionals
[and] money raised. We had it all. We had the money raised
by the time the races started in the spring primaries.
By the time the primaries took place, we had people on
the ground in every state [and] a budget that everybody
agreed couldn't be superseded because somebody had a bril-
liant idea one day that we were losing here or there. There
were procedures that [we] had to go through. You couldn't
spend all the money in one place. We had a state-by-state
gameplan which was that thick; I can remember looking at it.
Ede was the one who was the chief financial officer and made
sure we didn't go over the guidelines. Every state had a
budget, a number of people [who] were supposed to start
operations. It was kind of a General Motors operation in
political circles.
Brady -- I -- 8
So I always thought that when we came to the primaries,
the combination of having the right strategy, the discipline
of having our troops together, having fought some intel-
lectual battles for a year--eventually organization plus the
best candidate would win out. We had the best candidate, I
was sure, but we also had an organization that knew exactly
where it was going and how to plan. It was amazing, really.
G: Others have indicated that you were the one in G-6 who
really had the authority to speak for the Vice President,
that you were sort of his representative in that group.
B:
Well, in a sense that he and I discussed it back at Camp
David in the fall of 1984 and that he told me to go ahead
and try to put it together. Again, I want to emphasize that
for the first two years it was a research and think-tank
kind of thing and then it turned into the campaign. But
certainly by the time we were through, Craig Fuller had his
full confidence because of the fact that he was chief of
staff. Lee Atwater was seeing him [Bush] every day toward
the end of the thing. I think for the first two years maybe
that's true, but after a while everybody had their pres-
cribed role. In the end Bob Teeter moved down here from
Detroit. I didn't; I came down a day or two a week from New
York or wherever I was and pitched in. So I think people
think that, but it never came to, "I speak for the Vice
President and we shall do it this way. This was a group of
Brady -- I -- 9
people that had bought onto a plan, knew where it was going,
and knew how to execute it.
G:
Aside from recruiting people, how would you describe your
own contribution to G-6?
B: Well, I don't know. I'll leave that to others. You must
have talked to a lot of people, and I'd rather have them
comment on that. I didn't think about [it in] any way
except as keeping the train rolling toward the destination.
G:
Others have suggested that you and Secretary Mosbacher, more
than anyone else, were responsible for maintaining the
budgetary discipline so that you would have the resources
you needed.
B: Well, there isn't much question about that, because there
was a double-signature checkbook system. Ede and either
Mosbacher or I, as I remember, had to sign off on checks in
excess of certain prescribed amounts.
G: Really?
B: I think SO. If it wasn't that, it was something very close
to it.
G:
Had the system been in place in any other campaigns?
B: I have no idea. That was my first shot at it.
G: In general, in the meetings, did you see your role as one of
making sure that money was not wasted or that it was
carefully targeted?
B:
Well, I think I maybe had many roles, as did we all. But
one of the things that I always tried to emphasize was the
Brady -- I -- 10
fact that we shouldn't get excited by momentary losses one
place or another. If there was a loss that we thought would
require a re-allocation of funds, we ought to make sure we
sat down and understood what that re-allocation made. We
only had a certain amount of money. We were only allowed to
raise a certain amount of money--I forget exactly what the
laws are--and if you wanted to double up in one state, you
had to get it from somewhere else, or you had to get it from
advertising or overhead. Before we would go ahead and do
that, we had to say where the money was going to come from.
Too bad Congress doesn't work that way.
G:
Anything else on your role in the budgetary decisions?
B:
No, it's getting awfully far in the past for me to remember.
G:
How about the decision to invest heavily in Super Tuesday?
B:
I would say that the spearhead for that line of thought was
Lee Atwater. It had particular attraction for him because
it carried so many votes, but also a good many of them were
in the South, where Lee had even greater expertise than he
had as a general matter. So I think everybody bought onto
that quite early. I think the only discussion that would go
around we tried to analyze the emphasis on Super Tuesday--
was that we also wanted to have [enough money to last the
campaign]. I had a longstanding theory that at the end of
the race, everybody else would run out of money and they'd
have to quit and start taking single-engine airplanes, and
Brady -- I -- 11
if you maintained the discipline so that there was enough
money in California, Ohio, and I forget what the other
states were.
...
Since we had enough money, it was an
important strategy to have enough money to go the last bit
of the campaign. Having seen other campaigns discussed, I
knew the tendency is always to hit the panic switch early
and go spend the money as soon as the thing looks bad.
So we had a very strong Super Tuesday strategy, but we
also had a strategy which said, "Well, let's not bet the
whole ballgame on Super Tuesday." Now, later in the
campaign, I think that was changed, as it began to look like
we could really deal the opposition a death blow by increas-
ing Super Tuesday [spending], but also we did have enough
reserves to stay the long game if we had to.
G:
Did Atwater have to do a selling job on moving that money
forward?
B:
I don't remember how much money it was, really. Sure. You
couldn't move the money around without doing a selling job.
But it wasn't as if everybody else said no and he said, "You
have to." I would say that as I remember it, there was a
discussion on it; he felt very, very strongly about it and
two or three times tried to move it and eventually convinced
the group that that was a good idea.
G:
Were there occasions in which George Bush followed his own
counsel rather than the recommendations of his advisers?
Brady -- I -- 12
B: Yes, but I can't remember any. He's a great delegator if he
thinks things are going well. And he's very much of a long-
term strategist, too. He probably was the strongest ally
for making sure 1) we had enough money in the end of the
campaign, and 2) that we didn't spend it all on overhead
here in Washington. You can run around and set up an organ-
ization that's perfect, [but that] has too many people in it
who run around town talking to themselves instead of talking
to the people in Iowa, New Hampshire, Michigan, wherever.
So he was a very strong backer of that strategy, and the
fact that he backed it made it easier to sell in the inner
councils. But sure, he did things from time to time that he
felt had to be done. I don't really remember any so
Draconian that they [stand out].
G:
Others have suggested that his advisers were often trying to
get him to put distance between himself and President Reagan
on some issues, and he really refused to do that.
B: Well, maybe. There certainly had to be some of that. I don't
remember it as being determinative. The then-Vice President
said he understood that relationship and, I think, [said] words
to the effect, "Boys, leave that one up to me. I'll handle
Brady -- I -- 13
President Reagan. I'm confident that at the right time
he'll be with me." And of course he was.
G: Was there debate within the campaign about how much to spend
on media versus how much to spend on the field operation?
B: Always. But, as I say, those things got lined up ahead of
time in a very detailed--maybe somebody's still got a copy
of the book; I don't. I threw all mine out. They were
huge, couldn't carry them around. But there were detailed
breakdowns of those accounts, and when you moved them you
had to get it from somewhere else, as I say. The point of
view of Lee and the people on the political side--Bob Teeter
and Roger Ailes--was observed as more important in that area
because they really knew what they were talking about. Mos-
bacher and I could have an opinion as to whether you should
spend ground money, organizational money, or media money in
Alabama, but it was not as informed as Teeter's and
Atwater's would have been--and of course Roger's in a more
limited but still very important sense.
G: Regarding the problems in Michigan with the [Pat] Robertson
people taking over the state party machinery, was there ever
serious consideration of just pulling out?
B: Well, as I remember Michigan, since it was early on, that's
probably the place where we did have the most discussion and
disagreement as to whether we ought to pull out, whether we
ought to put more money in and just go forward where we
Brady -- I -- 14
were, just keep going and know that really in the long run
it would be strange indeed if, in a place where we really
had the popular support, we could get it yanked away from us
by tactical, organizational maneuvers. And that's exactly
what happened in the long run. We won by hanging in there
and making sure that, since we really had the basic support,
we got it. But there wasn't--I can't remember precisely,
but sure, at some point in time, the idea was put forward
that we ought to not spend another dime because we were get-
ting pretty badly beaten at that particular point in time.
I think a bunch of us got together and said, "Let's go out
there and insist on our rights. Let's take them to court."
Ede, along with a very effective and brilliant lawyer,
Dave McKeague, did just that. I think Ede spent a good par-
cel of time out there, helping McKeague manage the thing.
But we basically took them to the courthouse and won those
suits. Then it sort of broke up after that. We probably
spent more per delegate in Michigan than anywhere else in
the campaign. It was over a million dollars, at that point
in time; it may have gotten up as high as two before we were
through. [But] at least we weren't in the same position
John Connally was in [during] the 1980 election, when we
spent sixteen million dollars for one delegate. We got
forty or fifty or some such figure in there, out of ninety;
Brady -- I -- 15
I don't remember exactly what it was. Certainly the price
per delegate was high, but we won Michigan.
G: Was there any way that you could have won Iowa, do you
think?
B: In retrospect, I don't think SO. Although, when you have
Rich Bond on the ground and this organization, of which I'm
justifiably proud, working on the thing--I would have to say
I don't know how you can do it. The farm economy was in a
terrible mess. Bob Dole is from a farm state, a next-door
farm state. I think probably by being more effective we
could have wound up second instead of third, but I don't
think we ever could have beaten Bob Dole there.
It's one of the reasons why I was confident that we
could do better in New Hampshire; it was a different venue
entirely. You're talking about a place [where] George Bush
got 48 percent of the votes in 1980. He also won Iowa in
1980, but you didn't have the dramatic turnaround in the
economic situation in New Hampshire. In fact, it had gotten
better because of the influx of industry and electronics
firms and real estate development; it had gotten a lot bet-
ter. In New Hampshire and Iowa you're going just the
reverse way. All of the Reagan-Bush programs had not done
well. And I suppose that [Dole] spent a lot of time out
there, although I don't really know because I've never
talked to Bob Dole about it. He tried to use the Iowa
Brady -- I -- 16
campaign to steamroller the process the way George Bush did
in 1980, but it didn't work.
G: Did you spend time in New Hampshire during that week between
the Iowa caucuses and the New Hampshire primary?
B:
You mean personally?
G: Yes.
B: Yes. I was there when the President came in from Iowa. I
spent that night in the hotel with him.
G: What was his mood that night?
B:
I think he was resigned to the loss in Iowa because he knew
it was coming and I think he was startled by the fact that
he had run third instead of second. I think he found that
hard to understand. It wasn't a great night, although he
took it the way he takes all of those things. He went down
and made a good, strong speech to the New Hampshire press
corps. Then [he went] back to work the next morning, as I
can remember, because I brought up what I thought he ought
to say starting off the New Hampshire campaign. He was
going out to a factory gate at six o'clock in the morning.
He was up, ready to go. At that point in time I told him I
thought what he ought to do is say, "New Hampshire is New
Hampshire. We're not in Iowa anymore." I remember there
was a big brouhaha over whether that was a very smart thing
to say or not, but it was true. The people in New Hampshire
wanted to vote for George Bush and the people in Iowa
Brady -- I -- 17
didn't. So it was important to make that distinction.
G:
Any insights on the discussion within the campaign on how
far he should go on the no-taxes issue and whether or not he
should sign the pledge not to raise taxes?
B:
By the time I left the campaign in the summer of 1988, he
had not taken the no-taxes pledge, I don't believe. It had
been forming, but I don't remember where that line first
came out. I think it was at the convention, was it not?
G:
The "no new taxes" line?
B: Yes. "Read my lips." I think "Read my lips: No new
taxes," was obviously at the convention, and I had left by
that time. I had been nominated by President Reagan on the
fifth of August, I think, and the convention was about a
week later.
G:
During the New Hampshire primary with Senator Dole, hadn't
the Vice President been urged to sign the pledge?
B:
Maybe there was. New Hampshire is a strong ["no] new tax"
state and I assume that that's correct. But it had not
grown to the size that it assumed after the convention.
That's what I meant when I said earlier--
But..I think he did take--started--but it was very
minor; it wasn't minor, but nothing really thought through
as a basic campaign strategy, which it became by the conven-
tion.
Brady -- I -- 18
G:
Do you recall the Memorial Day time at Kennebunkport, when
you talked about strategy and issues for the fall campaign?
This was May, 1988.
B: Yes.
G:
Tell me about that.
B: Brother. These things run together so much it's hard for me
to remember anything distinct about that. If you can remem-
ber what other people said about it, I might be able to
react to it. It was just a continuum. That, to me, wasn't
any more than transferring what we were doing on a weekly
basis to Kennebunkport. We had a bunch of people up there
who came in with various different--I think Mike Boskin was
there and a lot of other people like that. It was fleshed
out to give him much more advice for the summer campaign,
but I don't remember too much about it. I was there, but it
was such a continuum of things running together, I don't
remember much about that. I must have spent at least a
month of my life in Kennebunkport.
G: Dukakis was ahead in the polls by about seventeen points
then. Were you discouraged?
B: Not a bit. No, I didn't believe those polls for a minute.
The Vice President and I used to talk about it quite a lot.
Was he ahead at that time? He was ahead by the time of the
convention because--I think he got to his maximum lead after
the Democratic convention. They had a lot of good acts
Brady -- I -- 19
going on at the convention: Teddy Kennedy and the lady from
Texas.
G: Ann Richards.
B: Yes, that sort of thing. So I thought we would get a good
part of that back after the Republican convention, and I
think that turned out to be the case. I think if you notice
the peaks over the convention--since neither one of these
guys had dominated the political landscape, it was a ques-
tion of when you give one the prime time, like Dukakis and
the Democrats had for three or four days, [the polls] spiked
up there. My impression was that we were seven or eight
points back going into the Democratic convention, and it
spiked up. I think we came back to roughly ten, or some-
thing less than that, right away after it. Maybe even less
than that. I don't think it was a month into the campaign
after the convention when the lead disappeared. But maybe
you remember.
G: Was it at Kennebunkport when you realized how devastating
issues such as the furlough and the Pledge of Allegiance
were for Dukakis' approval rating?
B:
The time that that became absolutely clear to me was [when]
I went and watched a focus group with Teeter, Atwater, and
Ailes in suburban New Jersey. I don't remember what town it
was in, but it's just right over the George Washington
Bridge.
Brady -- I -- 20
G: Paramus?
B: I don't remember. I don't think it was; it may have been
Paramus. They had a session, which Teeter, Atwater, and I
spent four hours at. I can remember the lousy sandwiches.
It was behind one-way glass, as you know. Although the
people are told it's being recorded or watched, they soon
forget that. You could see, during that four hours, that
once you brought [up] three or four different things: fur-
loughs, the flag, the fact that he had overridden the Com-
mander in Chief by not allowing the Massachusetts National
Guard to go to Honduras-- of the fifteen people in the focus
group, thirteen of them were for him [Dukakis] when they
started the usual pattern. As you know, what they say is,
"Suppose Mike Dukakis moved to your hometown. What would
you say about him?" Everything was very pleasant. "Then,
would you vote for him?" Yes, you would. "Would it change
your opinion if you knew these six things?" And they went
through six different things. One by one they peeled off.
There were a couple of guys who'd served in the service, who
said, "WOW, you mean he disobeyed the Commander in Chief?"
They were gone.
By the end of the focus group, I would say that instead
of thirteen out of fifteen, he was down to six or seven,
which was his natural constituency of liberal Democrats who
would back him and give him a whole lot of benefit of the
Brady -- I -- 21
doubt. There isn't any question in my mind that that was a
turning point in the campaign; you could bring up those and
the fact that Massachusetts was not now running successfully
as a state, in terms of its fiscal program. So in my mind,
I knew that the jig was up that night for [Dukakis].
Obviously, you never know the jig is up, but I was sure
then--and I don't remember when that date was. All we had
to do was apply the good organization we had to making clear
that the differences were well known by everybody. And I
think Ailes, everybody would agree, is a master at that.
Even if some would say he does it in a way that is unfair,
they sure get edged out. The edges show.
The same thing happened on the other side with Bush.
Five or six of these fifteen people were for him [at the
beginning of the group]. By the end of that thing, they
moved from five or six to seven or eight, something like
that. So you knew that once you got the information out,
there was going to be a dramatic change. And there was.
End of Tape 1 of 1 and Interview I
FROM
THE WHITE HOUSE
WASHINGTON. D.C.
Mr. Robert B. Holt
303 West Wall Street
Suite 2200
Midland, Texas 79701
4-9-91
THE PRESIDENT
Re: : yours of 3-28
Bobby -
Yes- - all's well, our
with picture are
licenses here. Thanks! Now, who'll
teach we to drive? !!
All But ay
Jan
bcc: Bridget Montagne
IN & OUT
FROM
THE WHITE HOUSE
WASHINGTON. D.C.
Mr. Robert B. Holt
303 West Wall Street
Suite 2200
Midland, Texas 79701
4-9-91
THE PRESIDENT
Re : yours of 3-28
Bobby - -
Yes - - all's well, our
licenses with picture are
here. Thanks! Now, who'll
teach we to drive? !!
All But any
bcc: Bridget Montagne
IN & OUT
TEXAS DEPARTMENT OF PUBLIC SAFETY
5805 N. LAMAR BLVD. - BOX 4087 . AUSTIN, TEXAS 78773-0001
512/465-2000
ROBERT
CHAIRMAN B. HOL Geo -
3-28-9
CALVIN R. GUEST
ALBERT B. ALKEK
COMMISSIONERS
Euclosed is your official Tsx.
Drivza lic / The 212xt think you
OR Bar get carded you will have
the et. I.D. My term Experies
JEB 1997 -So if you have any
problems - LET urs know
OVER2 Proud 01 you Polby
G.R -
you & Ban can throw
your old clic. away -
150
Jay has this under
control
Bush Presidential Library Photocopy
Document Originally
Attached to
Following Page
Bush Library Photocopy
George Bush Handwriting
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
04. Memo
From Jay Parmer to Patty Presock Re: The President's Trip to
04/09/91
(b)(7)(e)
Montgomery, Alabama on April 13, 1991 [[redaction]] (1
pp.)
Collection:
Record Group:
Bush Presidential Records
Office:
Office of the President
Series:
Daily Files
Subseries:
WHORM Cat.:
File Location:
Tuesday, April 9, 1991
Date Closed:
7/5/2012
OA/ID Number:
90591-009
FOIA/SYS Case #:
2009-0166-S
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
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AR Disposition:
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RESTRICTION CODES
Presidential Records Act - |44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
PRM. Removed as a personal record misfile.
THE WHITE HOUSE
WASHINGTON
APRIL 9, 1991
MEMORANDUM FOR PATTY PRESOCK
FROM:
JAY PARMER
SUBJECT:
THE PRESIDENT'S TRIP TO MONTGOMERY, ALABAMA ON
APRIL 13, 1991.
Craig Ray, our lead advance representative in Montgomery, called
today with a request from Ray Scott: Mr. Scott has scheduled a
somewhat large weigh-in event at a church nearby his residence to
follow the Bass Tournament". It seems that Mr. Scott would like
for the President to ride in a bass boat being towed on a trailer
to the weigh-in from a staging location some 400 yards away.
According to Mr. Scott, this a traditional activity for
participants in all of his Bassmaster Tournaments held around the
country.
(b)(7)(e)
gree
I would have to concur with these concerns.
Bush Presidential Library Photocopy
Furthermore, while the President is always a good sport, I am not
sure how dignified this would appear. Of course, the National
Press Pool would be present to document this entire weigh-in
ceremony.
I have instructed Craig Ray to inform Mr. Scott that we are
uncomfortable with this idea for a variety of reasons, and to
attempt to steer him away from it. If Mr. Scott contacts you or
the President directly, I would strongly urge you to contact John
Magaw before agreeing to the proposal. Mr. Scott is a very nice
gentleman, but I am not sure that he will understand our
reluctance to have the President participate in an activity that
is a common occurrence at his fishing events.
Thank You for your assistance.
CC: John Magaw, SAIC
Presidential Protective Division
daily
/
4-9-91
THE PRESIDENT
/
Dear Ralph -
Edwards asked
that Bill I sign this and send
it along It couls with of a
lot of happy memories
on days on the Sam Tac
FROM
THE WHITE HOUSE
WASHINGTON, D.C.
Mr. Ralph Bagwell
135 Bent Tree Drive, H-4
Hendersonville, North Carolina 28739
I had not known, 'til
Bell told we, of your
exploits us Kora- -
some story.
my was regards to
your Co Bal
more
-
The White House
April 9, 1991
To Ralph Bagwell
Tharks for keeping
are out of harm's
way- so may times
by Bul
daily
FROM
THE WHITE HOUSE
WASHINGTON. D.C.
Mr. James K. Baker
Chairman of the Board
Chamber of Commerce
1615 H Street, NW
Washington, D.C. 20062
-
THE PRESIDENT
4-9-91
Rear Jim,
I gave Kathy Super
kivel imitation. I
you hope I can do it !
Good 200g you today.
Sincerely, an Bl
GEORGE BUSH
Kathy
A good
usually one !
Your Call
CHAMBER OF COMMERCE
OF THE
UNITED STATES OF AMERICA
JAMES K. BAKER
1615 H STREET, N.W.
CHAIRMAN OF THE BOARD
WASHINGTON, D. C. 20062
202/659-6000
April 9, 1991
The Honorable George Bush
President of the United States
of America
The White House
1600 Pennsylvania Avenue, N.W.
Washington, D. C. 20500
Dear Mr. President:
As Chairman of the U. S. Chamber of Commerce let me invite you
to spend 30 minutes with us at our salute to the Armed Forces,
to be held Monday morning, April 29th, in Constitution Hall as
a part of our annual meeting.
As you well know from your previous participation in this
event, it is a patriotic display before America's leading
business people. Twenty representatives of the Armed Forces
will be featured, along with the U. S. Marine Band, Drum and
Bugle Corps.
We would greatly appreciate your participation, and your brief
remarks. It is a great opportunity for you, Mr. President, to
convey your message to the business community.
Thank you for your consideration!
Sincerely,
JKB:br
m. President_ Why not come and
give FTA and Fast Track a boost
before 5000 businesspeople from across
the U.S. ?
Jhn
daily
FROM
THE WHITE HOUSE
WASHINGTON. D.C.
Mr. Chip Gibson
The Crown Publishing Group
201 East 50th Street
New York, New York 10022
4-9-91
Dear Chip,
Morvin passed along
there 2 books "Eagles" and
"Thunder". May thanks. Im
up for zone relaxed reading
Sincerely. GaBel
bcc: Marvin Bush
Family File
GIFT UNIT
(please note: 2
paper back books
given to the President
via Marvin Bush)
FROM
THE WHITE HOUSE
WASHINGTON. D.C.
Mr. Tom Gulotta
The Islander
Post Office Box 766
Mile Marker 82.1
Islamorado, Florida 33036
THE PRESIDENT
April 9, 1991
Dear Tom,
I thought you might enjoy the attached.
It was nice of you to come across the street to say hi there
at Islamorada. I hope your stay there was as pleasant as
ours.
Thanks for the warm letter you sent me. I appreciate your
confidence and your support for '92.
Keep up the great work. Warm best wishes,
aBl
P.S. Thanks for that lure cum "guarantee." Looks like
a winner!
bcc: Jonathan Bush
Ron Kaufman
IN & OUT
Jan Burmeister
FROM
THE WHITE HOUSE
WASHINGTON. D.C.
Mr. and Mrs. Michael Paynter
The Cake Box Bakery
5109 Overseas Highway
Marathon, Florida 33050
THE PRESIDENT
April 9, 1991
Dear Beth and Michael,
Everyone's diet is shot, but those key lime pies are
worth every calorie! You are thoughtful to remember
us, and we are grateful.
Warm regards, and thanks again.
Sincerely,
GyBul
Jan
bcc: Bruce Caughman
Gift Unit
FROM
THE WHITE HOUSE
WASHINGTON D.C.
Mr. Warren J. Cowan
Chairman
Rogers & Cowan, Inc.
10000 Santa Monica Boulevard
Los Angeles, CA 90067-7007
THE PRESIDENT
4-9-91
Dear Warren
The frame for my cheaters
IS wow at the eye ball place
getting outfitted with my bi-
tocal lenses. How thoughtful
of you!! It was a joy having
you here-Barbara, too ag Buil
Jan Burmeister
FROM
THE WHITE HOUSE
WASHINGTON. D.C.
Dr. Leighton Farrell
C:
Bridget Montagne
Highland Park United Methodist Church
3300 Mockingbird Lane
done MD
Dallas, Texas 75205
4-9-91
THE president
Dear Dr. Farrell,
I just want to tell
to be in your lovely church
you how phased I was
The service for John -
Pooh in that lovely setting
was enhanced by
your heartfult tribute
to them and to their
family -
Geo (Jr) has zpohen
so lovingly A you
church and of you.
Jan
Sincerely. GBul
THE WHITE HOUSE
WASHINGTON
April 9, 1991
Dear Mrs. L'Amour:
Thanks for your letter of March 4 in support of
Dr. Keith Kanner for the President's Council on
Physical Fitness and Sports.
There are no openings on the Council right now, but
I've asked my personnel staff to put Dr. Kanner on
the list of those to be considered when a vacancy
occurs.
Sincerely, G Bel
Mrs. Louis L'Amour
100 Loring Avenue
Los Angeles, California 90024
Jan
Pool Report: Bush with House GOP leaders
4-9
The President was in no mood to talk. Asked about the
buffer zone proposal for the refugees, Bush said, "This is a
photo op." He said, after another ateempt to question him,
that he had had "four press conferences in six days" and was
in danger of getting "over-exposed. " At this, A congressman
we believe is Bill Thomas (R-Galif.) quipped as Bush was com-
plaining of overexposure, "All of us are dying to have that
happen." As we left, Bush was noting his regrets at
the deaths of Sen. Heinz and former Sen. Tower.
Ann Devroy
Washington Post
MEETING TIT BIPA T SAN LEADE S
April 9, 1991
Not much to report. The pool was in the meeting less than two minutes --
long enough to see the usual suspects and to be lectured by the Presddent
on the no-questions ground rules. That, he said pointedly in respone to
one attempted question, "is the rule of the day. " The President Was flanked
by Mitchell and Michel; Quayle was seated opposite Bush.
--George Condon, Copley News Service
White House News Summary
Tuesday, April 9, 1991
11:30 A.M. EDT NEWS UPDATE
PRESIDENT/TRADE PACT (Christopher Connell, AP) -- President Bush
met today with House Republicans in his effort to keep Congress
from rewriting any trade pact he reaches with Mexico or other
countries
Bush met with top House Republicans primarily to
keep trade agreements on the fast track through Congress. He also
made two appearances before business leaders to make his trade
pitch. In a photo session this morning, Bush turned aside
reporters' attempts to question him about suggestions that a refuge
be established in Iraq for ethnic Kurds under attack by Saddam
Hussein's forces. He refused to answer, quipping that he was
getting "overexposure" from news organizations.
KURDISH HAVEN/IRAQ (Nicosia/Reuter) -- Iraq rejected the idea of
a U.N. safe haven in northern Iraq for Kurdish refugees and said
it would use "all means" to block such a move. "The proposal to
set up a zone under United Nations supervision inside Iraq to deal
with the so-called refugee problem is a suspicious proposal that
Iraq categorically rejects and will resist it with all means, "Prime
Minister Saadoun Hammadi said. "Creating and inflating this
problem is deliberate and is part of the chain of plots against
Iraq's sovereignty," he told the official Iraqi News Agency.
KURDISH HAVEN/BARZANI (In Northern Iraq/AP) -- Masoud Barzani, head
of the Kurdistan Democratic Party, said rebellious Kurds would
accept a cease-fire once a U.N. -protected refugee zone in northern
Iraq was established. "It is the government that continues to
fight. If they stop, we will stop," he told reporters.
KURDISH HAVEN/TURKEY (Amsterdam/Reuter) -- Turkish President Ozal
backed a British proposal to create a U.N. haven in northern Iraq
for fleeing Kurds, but warned they could languish for years in
refugee camps unless Saddam Hussein is overthrown. "We have to put
up a zone in northern Iraq, but not let them (the Kurds) become
like Palestinian refugees in camps," Ozal told an international
conference for business and industry leaders in Amsterdam.
KURDISH HAVEN/EC (Luxembourg/AP) -- The EC is backing a British
proposal urging the U.N. to create a haven in northern Iraq for the
hundreds of thousands of Kurdish refugees fleeing the wrath of
Iraq's army
British Foreign Office minister Hogg today
affirmed the need for military protection for Kurds, saying in a
BBC interview that the haven "would require U.N. observers in quite
substantial numbers and their presence would have to be underpinned
either by actual physical force or the prospect of it.'
ISRAEL/BAKER (Jerusalem/UPI) -- Israel expressed interest Tuesday
in participating in a regional conference under the joint auspices
of the U.S. and the Soviet Union, providing such a meeting would
lead to direct peace talks with Palestinians and Arab states.
Foreign Minister Levy, upon concluding a one-and-a-half-hour
meeting with Secretary Baker, said he was hopeful that postwar
diplomacy could lead to a breakthrough in the Middle East conflict.
"Those obstacles that were in the way, we have removed," Levy told
reporters outside the Foreign Ministry
Baker was also
optimistic, but less exuberant: "I think we did make some
progress. There is, of course, a distance to go."
-елош-
PALESTINIANS/BAKER (Jerusalem/Reuter) -- Palestinian leaders told
Secretary Baker his Middle East peace efforts could leave the
Palestinian issue unresolved
In a statement to Baker, Faisal
al-Husseini, leader of the six-man Palestinian team meeting with
Baker, demanded Washington restore its dialogue with the PLO and
press Israel to accept the principle of exchanging occupied land
for peace.
(Jerusalem/UPI) -- Palestinian leaders, meeting with Secretary
Baker expressed frustration over Israel's "intransigence,
entrenchment and procrastination over the Israeli-occupied
territories. But the six members of a delegation approved
by
Yasser Arafat also said they were pleased that Baker seemed
to be taking them seriously
"Foremost among these issues
is
the urgent imperative of addressing the brutal Israeli measures
carried out against the lives, rights, lands and resources of the
Palestinian people under occupation," the Palestinians said in a
written statement they presented to Baker.
APARTHEID (Cape Town/Reuter) -- South Africa's government published
a draft law to end race classification, the basis of the 43-year-
old apartheid system. The six-line proposal implements the last
of several sweeping reforms announced Feb. 1 by President de Klerk.
SOVIET UNION/RALLIES (Moscow/Reuter) -- President Gorbachev
demanded special powers to ban strikes and public protests during
working hours as part of an "anti-crisis program. "
"We face the
danger of economic collapse with all the consequences for the fate
of the people and for the defense of our state,' Vitaly Ignatenko
quoted Gorbachev as saying at the start of a Kremlin meeting of
the Federation Council, a grouping of leaders of most Soviet
republics.
SOVIET GEORGIA (Moscow/AP) -- The Georgian parliament declared the
republic's independence from the Soviet Union, the official Tass
news agency said
The immediate effect of the declaration was
largely symbolic, because it was unlikely to be recognized as legal
by President Gorbachev and the national legislatures.
CAMBODIA/U.S. AID (Oddar Meanchee Province/AP) -- Thousands of
civilians who fled fighting in guerrilla-held northwest Cambodia
now face starvation, according to rebel officials who are angry at
the U.S. for cutting off aid
"This is a crisis. Within a
month, people will starve to death. We need rice and salt, " said
Chim Siek Lieng, who runs the civilian administration for the
Sihanouk guerrillas in parts of northwest Cambodia.
CHINA (Beijing/Reuter) -- Hard-line Premier Li Peng declared that
a harsh crackdown on dissent had kept China from going the way of
Eastern Europe and said he would not resign. "If we had not taken
the measures that we were forced into taking at that occasion, then
China today might be bogged down in economic chaos and decline as
well as political instability, certainly at least as severe as what
happened in some countries that used to practice socialism," Li
told a news conference.
###
White House News Summary
Tuesday, April 9, 1991
2:00 P.M. EST NEWS UPDATE
BAKER/ISRAEL (Jerusalem/Reuter) -- The U.S. and Israel agreed in
principle that a regional Middle East peace conference be held, but
a host of practical details remained to be worked out, an anonymous
senior U.S. official said
"The idea of having a meeting has
been agreed," the official said. "The details, format, location,
timing, participants -- none of these were worked out.
FCC/RERUNS (UPI) -- A split FCC voted to approve a new set of rules
covering the $5 billion market for television reruns of hit
shows
The rules relax but do not repeal stringent regulations
governing the lucrative rerun business. Under the new proposal,
networks will be allowed to acquire reruns that account for up to
40 percent of their prime-time programming but only if those are
in-house productions
Commissioner Irving Duggan said there was
no White House interference in the commission's proceedings on the
issue.
BASE CLOSINGS/CHENEY (Reuter) -- Secretary Cheney this week will
recommend closing or shrinking over 30 major domestic military
bases, a move that usually creates uproar among members of Congress
who like the jobs and votes such bases bring to their districts.
Pentagon officials said that Cheney will hold a news conference
Thursday to propose closing or reducing the size of several dozen
bases in the U.S., which they would not name. They also said that
Cheney will move later this year to close or realign another 100
overseas military facilities, both large and small.
KURDISH HAVEN/U.N. OFFICIAL (Berne/Reuter) -- The U.N.'s top
refugee official said that she backed the idea of setting up a safe
haven in Iraq for Kurdish refugees. Sadako Ogata, the U.N. high
commissioner for refugees, said she would support the idea as long
as the right of Kurds to seek asylum in other countries was not
compromised.
KURDISH PROTESTERS (Reuter) -- Fourteen Iraqi Kurds chanted and
demonstrated in front of the White House to urge President Bush to
muster worldwide support for suffering Kurds in Iraq and to take
action to get rid of Saddam Hussein
The protesters said Bush
had encouraged Kurds to overthrow Saddam but did not help them when
their uprising failed in northern Iraq.
ECONOMY (AP) -- Seventy percent of the nation's top economists
believe the U.S. economy will pull out of the recession during the
current quarter, according to a survey released Tuesday. "Seven
of 10 of (the 51 economists) responding now say the recession will
be over by April, May or June -- with nearly equal votes for each
of those three months," wrote Robert Eggert, editor of Blue Chip
Economic Indicators, the Sedona, Ariz., newsletter which conducted
the survey.
WATKINS (UPI) -- Energy Department officials denied reports that
Secretary Watkins had submitted his resignation, saying Watkins has
"no plans to leave. "
"He's not going anywhere," Mary Joy
Jameson, a spokeswoman for Watkins, said. "He has not submitted
any type of resignation. I have been told he has no plans to
leave."
###
THE WHITE HOUSE
WASHINGTON. D.C.
april
Dr. David Switzer
Perkins School of Theology
Southern Methodist University
Dallas, Texas 75275
4-9-91
THE PRESIDENT
Dear David,
There is no was to tell
you how moved Banbara
n r I were. You spoke
from the heart Your love
and understanding shone
through. we were vey
proud to call John
"Friend"- It is
clear you were a cloze
triend -
Just a note to
Jan
say Thanks — for lifting
uz all up - - G Buil
Commitment
to Growth:
The American Business
Conference and the Challenge
of Economic Policy
Commitment
to Growth:
The American Business
Conference and the Challenge
of Economic Policy
AmericanBusinessConference
Contents
Preface
iv
Foreword
V
Discussion of ABC Anniversary Survey
1
The Competitive Environment
Job Creation
Workforce Competence
International Outlook
ABC and the Washington Business
Community: 1981-1991
8
Emergence of an Agenda
- Capital Formation
- International Trade and Investment
- Education
Final Thoughts
19
Selected Readings
iii
Preface
This report contains highlights from a recent survey of the
members of the American Business Conference (ABC) and an
interpretive essay about ABC and its place in the Washington busi-
ness community. There are as well throughout the text comments
from individual ABC members that help to illustrate how ABC's
mission relates to the business experience of ABC executives. We
would like to thank all ABC members for their cooperation in the
preparation of this report. We remain struck by their enthusiasm, by
the continuing relevance of their views for progressive economic
policymaking, and by the accuracy of their vision both in founding
ABC ten years ago and keeping it on course for the future.
James R. Jones, Chairman
Barry K. Rogstad, President
The American Business Conference
Washington, D.C., April 1991
iv
Foreword
This report is being issued in conjunction with the tenth anniver-
sary of the founding of the American Business Conference (ABC).
For those who know ABC well, an anniversary celebration may
seem incongruous. ABC members - the chief executives of some of
this country's most successful entrepreneurial firms - are not the sort
of people who look back. As a study of our members by McKinsey
& Company observed, ABC executives have an "eternal dissatisfaction
with the status quo." They thrive on change.
Still, one can learn from the past without living in it. The policy
agenda of ABC for the next decade has been formed and tempered
by political and business developments over the last ten years. By
providing a backward glance over those developments, this report
maps ABC's future.
Regardless of the specific policy challenges ahead, ABC's mission
and methods will not change. We shall continue to promote initia-
tives to encourage economic growth and a higher standard of living
for all Americans. Our members, rather than ABC staff, will be
responsible for communicating our views to policymakers. We shall
ask to be evaluated on the merit of our ideas; ABC will never have a
political action committee. And we shall remain bipartisan.
Pausing to mark an anniversary is a pleasant and appropriate
activity. It must also serve to remind us of how much work lies
ahead. The nation's fiscal house is in disorder, the skills of our
workforce require improvement, and American business has yet to
come fully to terms with economic globalization. These problems,
burdening as they do capital formation, labor productivity, and
international trade and investment, directly threaten the economic
well-being of future generations.
The nation needs a new consensus on the importance of
economic growth as the only practicable means for building - and
paying for - the kind of society we want to bequeath to our
children. Taking the lead in building that consensus is precisely what
ABC hopes to do over the next decade. We expect to be kept busy.
Arthur Levitt, Jr., Founder and Past Chairman
The American Business Conference
V
Discussion of ABC Anniversary Survey
In preparation for the American Business Conference's tenth
anniversary celebration, ABC executives responded to a survey
designed to elicit their views on the competitive environment, the
American workforce, and international economic conditions.
The survey was distributed to ABC executives in late 1990, a time
of discouraging political and economic news. Large numbers of
American soldiers were preparing for battle in the Persian Gulf. The
American economy had fallen into recession, stretching the already
strained resources of the banking system. The Uruguay Round of the
General Agreement on Tariffs and Trade was on the verge of col-
lapse.
Despite these and other grave problems, the seventy ABC
executives responding to the survey were characteristically optimistic.
To be sure, they face their share of competitive pressures, as the
survey revealed. Nonetheless, ABC members were able not only to
look back on a decade of accomplishment but forward toward
further success. The survey, then, is in effect a single snapshot of a
dynamic and continuing process of growth and job creation.
Comments regarding
"Cost containment with quality and service"
key factors for success
Peter McCausland, Chairman & CEO
in the 1990's.
Airgas, Inc.
"People - education and training"
Roland S. Borebam, Jr., Chairman & CEO
Baldor Electric Company
"Adequate financing, motivated associates, clear strategic
direction"
Clark A. Johnson, Chairman & CEO
Pier 1 Imports, Inc.
"Innovation and price"
John W. Brown, Chairman, President, & CEO
Stryker Corporation
"Worldwide skill at exploring new market niches via clever
marketing and technology"
John A. Gilmartin, Chairman, President, & CEO
Millipore Corporation
"The successful adoption of Total Quality Management prac-
tices throughout our company"
Stephen R. Levy, Chairman & CEO
Bolt Beranek and Newman, Inc.
1
The Competitive Environment
As a group, ABC companies face a tougher competitive environ-
ment than they did ten years ago. A look at the importance they
place on key strategic traits demonstrates the point.
Ten years ago, ABC executives emphasized innovation, niche
competition, and value as key components to their success. Price
competition lagged in importance.
Today, innovation, niche competition, and value have become
even more critical. Price competition, while less crucial, has also
grown in significance.
ABC executives are today faced with the job of speeding the
pace of innovation, expanding their share of key niche markets, and
providing more value in their goods and services - all of which
demand increased investment - - while simultaneously cutting costs
to meet stronger price competition.
The importance of
Key Strategic Traits,
1980 and 1990.
VALUE
NICHE
COMPETITION
FREQUENT
INNOVATION
1980
PRICE
1990
COMPETITION
0
1
2
3
4
5
Job Creation
Despite tightening competitive pressures over the past decade,
ABC companies achieved a remarkable rate of job creation during the
1980's. According to the survey, for the years 1980-1990, ABC
companies created domestic jobs at a compound annual rate of 8.2
percent, thereby more than doubling their number of U.S.-based
employees in ten years.
Domestic job creation by the subset of ABC companies investing
and hiring abroad surpassed that of ABC companies with no foreign-
based employees. Because of the so-called runaway jobs syndrome,
this point deserves amplification.
Sixty-seven ABC executives provided employment data in their
survey responses. Seventeen reported that their firms had no foreign-
2
based employees. Between 1980 and 1990, the domestic workforce
of these companies increased at an average compound annual
growth rate of 6.6 percent. In contrast, the fifty responding ABC
companies with foreign-based employees, expanded their domestic
employment in the 1980's at an average annual rate of 8.6 percent.
Building on a much smaller base, these same companies more than
tripled the number of employees outside of the United States.
These numbers suggest that, at the very least, investment and
employment abroad do not necessarily reduce domestic employment.
In fact the data indicate that for growing companies, establishing
corporate presence in foreign markets may protect and expand job
opportunities in the United States.
Average Compounded
10
Annual Growth Rate of
Domestic Employment,
8
8.6%
8.2%
1980-1990.
6.6%
6
4
2
0
ALL
ABC FIRMS
ABC FIRMS
ABC FIRMS
WITH
WITH NO
FOREIGN-BASED
FOREIGN-BASED
PERSONNEL
PERSONNEL
Average Domestic
Employment of ABC
Firms, 1980 VS. 1990.
1,877
4,140
Average Non-U.S.
Employment of ABC
405
Firms, 1980 VS. 1990.
1980
1,247
1990
0
1,000
2,000
3,000
4,000
5,000
3
Workforce Competence
Thirty-four percent of ABC executives surveyed believe that the
competence of the American workforce has improved over the past
ten years, 41 percent believe workforce competence has declined, and
25 percent found no substantial change.
The survey asked those ABC executives reporting declining
competence to describe what their companies are doing to compen-
sate.
"Because the nation's
security, economy, and quality
Seventy-one percent of those executives who believe workforce
of life depend on the techno-
competence is declining reported that their companies were becoming
logical literacy of all Ameri-
less dependent upon workers in favor of greater mechanization; that
cans, it is critical that busi-
is, their companies were substituting capital for labor where possible.
ness invest in and help im-
Sixty-eight percent said their firms were redoubling their efforts
prove our education system."
to retrain workers to specific company standards. Other options cited
included instituting remedial education to teach basic skills (32%),
John Rollwagen
looking beyond traditional sources to satisfy labor needs (32%),
Chairman & CEO
outsourcing to other firms (18%), and simplifying work procedures
Cray Research, Inc.
to help less able employees (12%).
Clearly there is no single strategy for dealing with the problem of
declining workforce competence. ABC executives typically cited
multiple tactics.
Most of the tactics are short-term responses to a long-term
problem. Ultimately, development of a world-class workforce will
depend on a world-class educational system at all levels, in all
communities, and for all students. Otherwise, the pressure to export
jobs will grow - not to cut costs but to find competent people.
ABC members' views
regarding changes in the
competence of the U.S.
workforce, 1980-1990.
34%
41%
INCREASING
DECLINING
COMPETENCE
COMPETENCE
25%
NO CHANGE
4
International Outlook
In a characteristic departure from conventional wisdom, and in
the face of the collapse of the Uruguay Round and the rise of
protectionist pressures, the vast majority of ABC executives surveyed
believe that the next decade will be a period of generally liberalized
trade and investment.
From the standpoint of managerial strategy, ABC executives are
looking beyond national borders for increased growth. Sixty-one
percent of the ABC executives surveyed said that by the year 2000,
international business will be indispensable for their firms' overall
success.
International business is already a key factor for the growth of
ABC companies. In 1990, on average 24 percent of the total rev-
enues of ABC firms were derived internationally.
For the years 1990-1995, ABC executives project an average
compound growth in international sales of nearly 20 percent.
Although exporting will remain an important tool for garnering those
sales, ABC companies also plan to expand their production capacity
abroad.
International investment moves in more than one direction.
Forty-five percent of the ABC companies surveyed reported that
they had tapped international capital markets. When asked why
they had looked abroad for financing, ABC executives most often
cited the superior availability and price of foreign capital, the
longer-term perspective of foreign investors, and the need to
minimize risk through foreign exchange hedging. Looking ahead,
most ABC executives expect the international capital markets to play
an increasing role in helping their companies meet their future
financing needs.
ABC members assess the
importance of interna-
tional business for the
10%
11%
8%
success of their firms,
26%
42%
16%
1980, 1990, 2000.
25%
61%
25%
32%
37%
Critical/Indispensable
Substantial
Marginal
1980
1990
2000
Irrelevant
5
A. International revenues
of ABC firms as a percent-
age of total sales, 1990.
24%
38%
B. Exports as a percent-
age of all international
sales, 1990.
A
B
Foreign production
capacity of ABC firms as
9%
a percentage of total
21%
production, 1980, 1990,
31%
2000.
1980
1990
2000
A. Foreign-owned equity
as a percentage of total
equity of ABC firms, 1990.
10%
15%
B. Foreign-owned debt as a
percentage of total debt of
ABC firms, 1990.
A
B
ABC members assess
importance of interna-
60
tional capital markets for
60%
their future financial
50
needs.
40
30
38%
20
10
0
2%
INCREASING
SAME
DECREASING
6
To look at these survey results is to understand immediately
ABC's policy agenda. Today more than ever, low cost and plentiful
investment capital, an able and motivated workforce, and an interna-
tional economic system open to the free flow of goods, services, and
investment are essential if companies like those in the ABC are to
flourish and the economy as a whole is to grow.
Growth is not automatic. Job creation does not just happen.
International competitiveness is not a right. All require cultivation.
While the future of ABC firms appears bright, that future will only be
realized in the appropriate policy environment. Articulating the
necessary ingredients for such an environment is what ABC members
attempt to do.
7
ABC and the Washington Business Community: 1981-1991
The decade of the 1980's was the most active period of federal
economic policy formation toward business since the New Deal.
Private sector efforts to influence that policymaking were correspond-
ingly intense.
One measure of those efforts was the growth of the business
community in Washington. According to the authoritative directory,
Washington Representatives, by the end of the decade there were
permanently installed in the Washington area over 1,900 trade and
professional associations, 1,500 corporate representatives, and nearly
3,200 lawyers and consultants registered as lobbyists or foreign
agents.
These numbers underestimate the private sector presence in
Washington. Business-subsidized think tanks, coalitions, and other
nominally independent organizations have extended business's reach.
Overnight mail, facsimile machines, telephone banks, and computer-
ized mailing lists have enabled companies without permanent
representation in Washington to become, in 1980's parlance, players
inside the Beltway.
From its inception in 1981, the American Business Conference
has faced the challenge of being heard amid the explosion of private
sector participation in governance. To do SO, ABC has relied upon
the power of one idea: economic growth.
In the late 1970's - when ABC was taking shape - the
promise of economic growth had dimmed. High energy prices,
inflation, rising unemployment, and declines in product quality and
service all conspired to produce what was accurately described as a
national malaise. For many large American companies preservation
of existing capacity had replaced growth as the prime imperative.
The American economy and American business seemed exhausted.
ABC offered another view. Here was a group of entrepreneurs
whose companies were doubling in size every five years. Between
1975 and 1980, ABC companies had created new jobs at a rate three
times faster than the economy as a whole, enjoyed annualized export
growth rates of 29 percent, and expanded capital spending at a rate
nearly twice that of Fortune 500 companies.
This extraordinary performance during the malaise years was
bound to attract attention. Even the relative obscurity of ABC
executives and their companies contributed to the organization's
reputation. The press and policymakers regarded ABC members as
novelties: they were not the usual corporate "statesmen" surrounded
by public relations advisers. Here were people quite unused to the
ways of Washington, evidently more comfortable at home running
their companies, and yet nonetheless convinced it was worth their
time to try to orient public policy to encourage economic growth and
job creation. Even more surprising, they wanted to concentrate
8
exclusively upon improving aggregate economic conditions rather
than plug the self-interest of their individual companies.
This perception of ABC members and their motives, which
helped so much to establish the organization's credibility, had the
added advantage of being true. Moreover, it was coincident with a
burgeoning belief in the possibility of economic renewal that was
beginning to sweep the nation in the early 1980's.
Emergence of an Agenda
Capital Formation
ABC's impact was more than just a matter of anticipating and
embodying a change in the national mood. Substantively, there was
- and is - a difference in public policy perspective between
companies that are growing and those that are preserving capacity;
companies that aspire to be king of the hill and those desperately
trying to stay on top.
An early example of that difference involved tax policy. A
"Why should the average
McKinsey & Company study sponsored by ABC in the early 1980's
American who's not an
measured the effective tax rate paid by 1,200 midsize, high-growth
investor be concerned about
companies compared to that paid by the Fortune 100 group of firms.
capital formation? Very
Using 1978 data (the most recent then available), McKinsey discov-
simply, it's in four letters:
ered that the growth companies were paying twice the rate of the
J-O-B-S. There is no way you
larger companies (30% compared to 15%).
are going to have job growth
The difference was best understood as the result of a corporate
unless you have renewed
tax structure that rewarded capital intensive, smokestack industries
vigorous investment of
with generous write-offs while taxing at high marginal rates the
capital, both in physical
income of companies relying on intellectual and technical know-
plant and in buman beings."
ledge. Yet, the latter group of companies - including the members
of ABC - were creating jobs and internationally competitive prod-
James R. Jones
ucts.
Chairman,
American Business
For ABC members a solution to this paradox seemed clear:
Conference
lower corporate tax rates in exchange for the elimination of generous
Chairman,
write-offs for capital intensive companies. Lobbyists for firms
American Stock
profiting from the code's prevailing bias were not impressed. The
Exchange
resulting fissure in the business community persists to this day.
Without the advocacy of growth companies, the debate might never
have occurred at all.
Concern about effective tax rates led naturally to interest in a
larger issue: the cost and availability of capital for business invest-
ment. In a 1983 monograph entitled High Cost of Capital: Handicap
of American Industry, a founding member of ABC, Dr. George N.
Hatsopoulos, demonstrated that American business faced a real cost
of capital three times higher than that in Japan. Dr. Hatsopoulos
argued that this disparity in capital costs, if unattended, would cripple
the ability of American companies to compete in the world market.
The problem of high capital costs was obvious to ABC executives
and business economists. But for Washington, the cost of capital was
an idea neither familiar nor well understood. Before the Hatsopoulos
monograph, differential labor costs were regarded as the primary
9
advantage enjoyed by non-American companies. That assumption
was a product of the hold that big business had on the Washington
policy debate.
For large firms, as ever, the issue was preservation of capacity.
Capital costs were not important because older, larger companies
were not capital hungry.
But growth companies have a voracious appetite for capital; they
must be in the capital markets continually. The predicament of
emerging growth companies is particularly dire. Not established in
the marketplace and with little collateral, such firms must rely on the
equity markets where capital costs are especially high.
Once again, the perspective of growth companies had intro-
duced something new to the Washington debate. In the years since
ABC's release of the Hatsopoulos monograph, America's high cost of
Excerpt from ABC
Be it resolved that the ABC considers the stimulation of
Economic Policy
national savings and the continued reduction of the federal
Resolution
deficit as the nation's leading economic priorities.
(Adopted January 24, 1989)
Be it resolved that the ABC believes deficit reduction is
primarily a matter of reducing the rate of increase in federal
spending. To that end, the ABC urges bipartisan scrutiny of all
federal spending programs, including defense and domestic
entitlements, for possible savings.
Be it resolved that the ABC believes that savings can be
realized without compromising national security, the needs of
low-income Americans, and necessary investments in infra-
structure and education.
Be it resolved that the ABC advocates consideration of
issues of inter-generational equity in order to balance expendi-
tures to meet obligations to older Americans in need while
providing programs to develop the potential of the young and
working population.
Be it resolved that the ABC advocates reform of the budget
process for the purpose of introducing greater discipline and
accountability. A disciplined and accountable budget process is
one that communicates to taxpayers the costs as well as the
benefits of any new programs while insuring that such pro-
grams, if adopted, are adequately financed.
Be it resolved that the ABC believes that, to the maximum
feasible extent, the burden of new federal spending should be
borne by citizens according to their ability to pay, and that
citizens with similar income levels should have similar tax
obligations regardless of the source of their income.
Be it resolved that the ABC, in the event that spending
economies and budgetary discipline are not sufficient to reduce
the deficit, supports imposition of new taxes explicitly and
without exception for the purpose of deficit reduction. The
burden of new levies should fall on consumption rather than
savings.
Be it resolved that the ABC supports longer term tax reform
which removes the bias against savings and investment relative
to consumption.
10
capital has taken its proper place in discussions about improving the
international competitiveness of American business.
Having demonstrated that the declining availability of capital in
general and its high cost to business in particular impeded economic
growth, ABC executives characteristically set about the task of trying
to solve both problems. The solution required two related public
policy strategies, neither of modest proportions: reduction of the
federal deficit and correction of biases in the tax code.
As ABC members saw it, the huge and chronic deficits of the
1980's would have been tolerable had the nation's private saving rate
been robust. But the federal dissavings in the form of deficits had
been coincident with a plunge in the private saving rate.
The amount of capital available for investment declined. By the
late 1980's, the United States lagged major industrial nations in both
net investment and productivity growth. Much of the investment that
was taking place was being financed by a huge influx of foreign
capital, indebtedness that caused the nation's trade deficits to swell
and imperiled the standard of living of future generations of Ameri-
cans.
For ABC, then, the importance of deficit reduction could only be
understood in the larger context of the nation's low level of national
savings. This perspective differed from the traditional hostility of
business to "big government." ABC executives did not venture any
particular view about the optimum size of government; they were
primarily concerned that Americans pay for whatever amount of
government they wished to have.
While seeing deficit reduction as primarily a matter of moderat-
ing the rate of increase of federal spending and establishing greater
overall budgetary discipline, ABC also supported new taxes dedicated
to deficit reduction.
To raise revenues without penalizing savings, ABC called for
larger levies on consumption. In the short-term, that meant excise
tax increases such as a higher levy on gasoline. Longer term, ABC in
the early 1980's supported a national value added tax (VAT) designed
with appropriate exemptions for food, clothing, and shelter. In
recent years, support for a VAT has been complemented by member
interest in a consumption-based income tax. Administered like the
current income tax, a consumption-based income tax exempts from
taxation all forms of net savings.
Along with urging deficit reduction as a means of raising the
level of national savings, ABC also sought policy initiatives to correct
a prevailing bias in the tax code favoring debt over equity and
consumption over savings.
The tax code allows corporations to deduct interest on debt
while simultaneously taxing equity twice, once as corporate income,
later as dividends and the appreciation of corporate shares resulting
from retained earnings. As George Hatsopoulos demonstrated in a
1989 monograph co-authored by Professors James Poterba and Paul
Krugman of the Massachusetts Institute of Technology, this anomaly
has several adverse effects. First, it raises the cost of capital particu-
larly for knowledge-intensive firms and start-up companies that must
11
rely principally on equity financing.
Second, it provides an incentive for companies to exchange
equity for debt, thus making themselves vulnerable in economic
downturns. Finally, the code's bias in favor of leverage propelled a
number of debt-financed takeovers and buy-outs. These deals
resulted in huge, involuntary capital gains realizations for tendering
stockholders. Hatsopoulos and his colleagues estimated that every
dollar paid out in these transactions resulted in 59 cents of additional
consumption. The rash of financial restructuring in the 1980's with
leverage, in other words, had been an important contributor to the
nation's consumption binge.
The code's bias favoring consumption over savings causes
equally perverse results. The flow of money into consumption is
taxed only once as income. Savings are taxed twice: first as income
and then as returns on accumulated savings. ABC executives
believed that this disincentive was at the core of America's chronically
lagging savings rate.
ABC members devoted considerable time to forging proposals to
achieve greater tax neutrality regarding debt versus equity and
consumption versus savings. Of course, a simple way toward neutral
treatment of debt and equity would be to repeal the deduction on
corporate debt. Some in Congress proposed as much.
ABC members demurred. Repealing the interest deduction
would raise the overall cost of capital. ABC members chose instead
to join those calling for corporate tax integration - that is, removing
a layer of taxation on equity.
As an alternative to integration, ABC endorsed enactment of a
capital gains differential applicable exclusively to new equities or new
gains on existing equities. The degree of tax preference accorded
such gains would depend on the length of time the equity had been
owned. For longer-term holdings, the tax on capital gains would
decline to zero.
To correct the code's bias against savings, ABC endorsed tax-
based savings initiatives such as expanded Individual Retirement
Accounts, family savings plans, and an expansion of the current
savings bond program. Recognizing the degree to which American
cultural attitudes promote consumption over savings, ABC members
strongly urged the President and other political leaders as well as
their colleagues in the corporate community to underscore the
importance of saving for the nation.
ABC's ideas for tax neutrality were not without cost. Compensat-
ing for the double taxation of equity and of savings would necessarily
reduce federal revenues. ABC's desire to correct the bias in the tax
code thus collided with its advocacy of deficit reduction.
Confronting this conflict has led to a sense among ABC members
that over the long term, the United States must adopt sweeping tax
reform that raises an adequate amount of revenues, does not discrimi-
nate against savings and investment, and is fair. The consumption-
based income tax theoretically meets all three criteria. For that
reason it has the potential for providing the structural framework for
ABC's capital formation advocacy in the next decade.
12
Like the current income tax that it would replace, the consump-
tion-based income tax can be made as steeply progressive as voters
wish and economic circumstances require. Because all forms of
savings escape taxation until they are drawn down and spent, a
consumption-based income tax obviates any need for targeted
savings incentives. Similarly, corporate income would remain
untaxed unless distributed and used for consumption. The double
taxation of equity would disappear.
Obviously, a consumption-based income tax presents daunting
transition problems (although unlike a VAT it does not necessitate a
new bureaucracy). ABC members believe that the tax's merits
warrant discussion and resolution of these transition problems. The
alternative is continued tinkering with the current tax code - a
process guaranteeing uncertainty, unintended consequences, skewed
business decisions, voter cynicism, and fat retainers for lobbyists,
lawyers, and accountants.
It is within the capacity of the United States to develop a system
of taxation that is equitable, efficient, and neutral. Such a system will
not eliminate all concerns about America's economic competitiveness.
Absent such a system, however, discussions about what government
can "do" for business are futile.
International Trade and Investment
Like ABC's fiscal policy, the organization's perspective on
international trade and investment ran counter to the prevailing views
of the business community in Washington.
Chronic merchandise trade imbalances in the first half of the
1980's prompted Congress to involve itself far more than at any time
since World War II in the formation and management of trade policy.
Congressional participation spurred greater business lobbying on
"Doing business interna-
trade and investment issues.
tionally is not an option for
The greatest share of business advocacy on trade emanated from
most American companies. It
companies seeking protection for their share of the domestic market.
is a necessity. Unless we
For firms more intent upon preservation rather than expansion, this
aggressively establish market
was a rational course. It is also true that protective measures are
presence abroad and unless
easier to devise and their effectiveness simpler to measure than
we are willing to learn from
initiatives to encourage businesses to sell abroad.
our foreign-based competi-
tors, our capacity to control
ABC executives were not among those pursuing protection. The
our market bere at bome will
early 1980's had been a period of rapid international expansion for
be irremediably crippled."
member firms. Between 1981 and 1986, the foreign sales of ABC
firms had grown at an average rate of 20 percent a year, compared
J.P. Barger
with 3 to 4 percent for other American companies reporting interna-
President & CEO
tional revenues. The foreign operating income of ABC companies
Dynatech Corporation
had increased 23 percent annually, in contrast to 4 percent for other
companies. ABC companies similarly outpaced their corporate
colleagues in export growth and in the acquisition of foreign assets.
As in tax policy SO in trade policy the line between growth
companies and firms seeking to preserve capacity was stark.
ABC companies made their views known in two publications, The
Challenge of Global Competitiveness: Views of America's High Growth
Companies (1987) and Winning in the World Market (1987). These
13
two monographs, based on surveys of ABC executives and follow-up
interviews, described the international success of ABC firms and the
managerial principles behind that success.
Other than calling for a reconsideration of export control
International Environment: Views of ABC Members
ABC members assess the
overall trade and invest-
ment environment over
7%
the next decade.
21%
-- 72% Improving/more
liberalized trade investment
environment
-- 21% Worsening environ-
72%
ment/greater protectionism
-- 7% No change
The three highest growth
markets for ABC firms
over the next five years.
JAPAN/
GERMANY/EEC
CANADA
PACIFIC RIM
ABC members over-
whelmingly support
U.S.-Mexico Free Trade
8%
Agreement.
-- 92% Support
-- 0% Oppose
-- 8% No opinion
92%
14
regulations, neither publication made specific policy proposals.
Indeed, ABC executives evinced little enthusiasm for new trade
legislation and no enthusiasm at all for protectionism.
ABC members did not deny that barriers to trade and investment
existed in Japan and elsewhere. They denied instead the capacity of
"Our continued success
government to remove those barriers through unilateral action.
depends upon our ability to
Moreover, ABC dared to suggest that some barriers were not SO much
compete effectively with
walls as hurdles and that managerial commitment and skill could
international competition in
surmount them.
both the domestic and over-
These views were provocative. In advancing them, ABC mem-
seas market. We must
bers were at some pains to point out that they did not regard their
continue to offer consumers
international success as automatic or necessarily permanent. They
the finest products at the best
were, in the words of Ray Stata, CEO of Analog Devices, "running
value in whatever market
scared." They did not want anyone concluding, on the basis of their
place we compete. To be
performance, that government had no role to play in cultivating
successful we must have a
competitiveness.
competitive cost of capital,
able employees, and an open,
For government did have a role. Rather than squander political
rules-based trading system."
resources trying to force the Japanese to behave, policymakers could
better spend their time helping to create a healthy economic environ-
W.L. Lyons Brown, Jr.
ment at home. Reduction of the federal budget deficit and construc-
Chairman & CEO
tion of a neutral tax code to facilitate the amassing of low cost,
Brown-Forman
patient investment capital were high on the list of necessary tasks.
Corporation
Fiscal policy was linked indissolubly to international competitiveness.
That linkage was, during the heat of the battle over omnibus
trade legislation in the mid-1980's, an inconvenient truth. ABC's
agnosticism on the matter of devising tough new trade laws placed
the organization in the not unfamiliar position of bucking current
wisdom.
Equally controversial was the nature of ABC firms' international
success. As described in Winning in the World Market, ABC compa-
nies typically had combined exporting with an investment-based
strategy. The latter entailed establishing sales, production, and
research and development facilities in key international markets such
as Japan and the European Community. These facilities were staffed
almost exclusively by foreign nationals.
That ABC members viewed exporting as only one tool among
many for succeeding in international markets disappointed many
tribunes of competitiveness. For them, it was not enough to succeed
internationally; a firm must export.
Central to this view was the assumption that investment abroad
eliminated jobs at home. For companies struggling to preserve
capacity, such a zero sum game might be the rule. Going offshore is
a quick way of reducing costs.
Growth companies are different. Their market share at home is
expanding. They do not invest in international markets to pare
domestic labor costs. They develop a presence abroad to grow
abroad, by keeping close to their customers, capturing product and
technological innovations developed outside of the United States, and
tying down foreign competitors on the latter's turf rather than in the
American market.
15
The ABC experience suggests that, rather than reducing domestic
employment, an international presence helps to create new jobs at
home. In making this point, ABC members hope to elevate the
debate on competitiveness beyond a one-dimensional fixation on the
merchandise trade deficit, a measure that disguises as much as it
reveals about American business's relationship to the rest of the
world.
To that end, ABC members strongly supported efforts to facilitate
the movement of goods, services, and investment through bilateral
pacts, such as the U.S. - Canada Free Trade Agreement and multilat-
eral negotiations such as the Uruguay Round of the GATT. Addition-
ally, ABC members are today actively involved in establishing
linkages with entrepreneurial firms in Japan and the European
Community. Ultimately, ABC hopes to establish an international
business-to-business dialogue on the importance of open markets for
world prosperity and economic efficiency. Forestalling a new era of
protectionism is absolutely critical for the ability of ABC companies as
well as other American firms to thrive in the next decade.
Education
While international expansion does not necessarily reduce
domestic employment, it does require an able and productive
domestic workforce. Along with augmenting the quality and amount
of investment capital, ABC members are similarly concerned with
improving the skills of employees.
This concern predated current business anxiety regarding
education. The rapidity of ABC companies' job creation brought
"We can no longer over-
them close to the problem early on. A 1982 study of ABC companies
look the needs of the majority
found that in order to sustain their job growth rate, 87 percent of the
of our high school students
companies surveyed sponsored job training programs, 65 percent job
who directly enter the
workforce. They will be our
retraining programs, 62 percent handicapped hiring programs, and 53
percent disadvantaged hiring programs.
employees, and we must
invest in their future."
A 1989 survey of the ABC membership further underscored
members' view of the importance of educational improvement. The
Josh S. Weston
vast majority - 83 percent - of ABC members described the decline
Chairman & CEO
in the quality of American education as "very serious." Asked to rank
Automatic Data
the severity of that decline at various scholastic levels, ABC members
Processing, Inc.
cited grades 9-12 as of greatest concern, followed by grades K-8,
college, preschool, and, finally, graduate education.
ABC members were asked to explain the decline in education
quality. First on their list was the relative lack of prestige enjoyed by
the teaching profession in American society. ABC members also
believed that parents were insufficiently involved in their children's
education, that there were no incentives in place to encourage
students to reach for academic excellence, that curricula needed to be
reformed, and that the nation lacked a reliable, standardized measure-
ment to gauge academic achievement.
The diagnosis is not surprising. Respect, involvement, incentives,
ability to change in the light of new conditions, accountability: these
are principles ABC companies put into play every day. To an extent
remarkable for companies of modest size and limited staff resources,
ABC firms are intensely involved in applying those principles for the
16
improvement of education in their communities. This is not the old
story of corporations demanding that schools be run more like
businesses, whatever that may mean. Rather, it is a statement of
belief that across organizations of all kinds, the conceptual keys to
higher achievement are the same.
As ABC members talked with one another about their efforts to
promote education reform, they sought a way to involve ABC as an
organization in the same pursuit. It was not a simple task. The
essential paradox presented by education is that, while a matter of
"Students and educators
national concern, it remains preeminently a local matter. It remains
must know the needs of
as well an enormously complicated issue: the American education
business and be convinced we
"problem" is in fact a number of discrete dilemmas ranging from
will help schools better meet
preschool funding to securing an adequate supply of doctoral
those needs. Business must
candidates in critical fields.
understand the education
system and be ready and
ABC decided to focus its efforts on improving academic achieve-
willing to make the long-term
ment among secondary school students intending to enter the job
commitment to be an active
market after high school. These work-bound students were most in
partner. THE VITAL LINK is
need of incentives to perform well in school.
aimed at developing specific
Virtually from kindergarten, young people learn of the impor-
conduits that facilitate this
tance for college admission of high grades, extracurricular activities,
process."
and good scores on standardized tests. By contrast, students
planning to get a job after high school rarely hear of a relationship
Roger W. Johnson
between scholastic achievement and eventual employment. Too
Chairman, President
many employers cannot be bothered to look beyond a high school
& CEO
diploma to discover what, if anything, a prospective employee did to
Western Digital
earn it. If employers are indifferent to academic achievement, why
Corporation
should work-bound students care?
To break this cycle of shared apathy, ABC in 1989 launched its
VITAL LINK project. The VITAL LINK encourages businesses to
understand better the skills they seek in new employees, to commu-
nicate those criteria to the schools, and to reward with differential
pay and superior opportunities for advancement those students
meeting the standards. Such incentives enable students to work
toward their fullest potential by helping them to understand the
opportunities available after graduation.
Conceptually simple, the VITAL LINK promises a revolution in
the way business hires high school graduates. Over time, as students
learn what skills prospective employers value and see graduates with
those skills receive better pay and faster promotions than less able
graduates, they will learn that scholastic achievement and meaningful
extracurricular experience matter.
The VITAL LINK does not include proposals for changing the
structure of schools or school curricula. It may well be that as work-
bound students begin to draw a close association between what they
learn in school with what they earn on the job, they will ask for
more varied courses. Similarly, educators may be spurred to effect
innovations to better develop the skills work-bound students seek.
In addition, the VITAL LINK could spawn novel forms of skill
assessment as well as new methods for helping students to compile
and transmit to prospective employees records of their academic
performance, test scores, and relevant work experience. All such
innovations would be desirable. From the perspective of ABC and
17
the VITAL LINK, they are by-products of the core tasks of making
businesses more intelligent employers of work-bound students and
providing students greater motivation to achieve.
To implement the VITAL LINK, ABC organized a National
Steering Committee comprising representatives of leading national
"We've heard a lot today
business and educational associations. The steering committee
about the work ethic in our
oversees a number of demonstration projects in communities around
country not being up to par
the country.
with other nations. As Ameri-
At these demonstration sites, committees of local business
can businesses compete for
people, community leaders, and school administrators, teachers, and
leadership in a global
students are working together to establish the feasibility of the VITAL
economy, it is imperative that
LINK concept. Assuming success, the National Steering Committee
our productivity and the
will assist in the dissemination of the VITAL LINK model throughout
quality of our work be at
the nation.
least competitive and at best
exceptional."
The evaluation of each demonstration project will take time.
ABC members believe that the potential rewards justify the effort.
Gloria Boban
Helping work-bound students, some of whom are the most disadvan-
President
taged young people in the nation, is essential if they are to realize a
Omega World Travel, Inc.
fair share in a growing economy.
It is said that a rising tide lifts all boats. That assumes that
significant segments of the populace are not stranded on islands of
apathy and neglect. Education can be a lifeline to these people, if
that line is connected to meaningful economic opportunity. The
VITAL LINK seeks to supply that connection.
The VITAL LINK
American Association of Community and Junior Colleges
National Partners
American Association of School Administrators
American Electronics Association
American Federation of Teachers
American Society for Training & Development
Business-Higher Education Forum
The Business Roundtable
Cities in Schools, Inc.
National Alliance of Business
National Association of Manufacturers
National Association of Secondary School Principals
National Association of Wholesaler-Distributors
National Education Association
National School Boards Association
The VITAL LINK
Fort Worth, Texas
Demonstration Sites
Orange County, California
Montclair/Morristown and Somerset County, New Jersey
18
Final Thoughts
Two important points implicit throughout this report should,
perhaps, be made explicit at the end.
First, ABC members believe that the future of the nation is in our
"The United States faces
own hands. If we bequeath to our children a lower standard of
the real risk of economic
living and worsened social conditions, we shall rightly be held
stagnation. But if we restore
responsible. The source of our problems is not overseas. It is here at
our faith and determination
home, with us, and what we have chosen to do with the extraordi-
to save and invest for the
nary advantages given to us by past generations of Americans.
future - which served our
Second, to secure the future we would wish for our children, we
country so well in the past -
must cultivate economic growth. This is not to say that growth
our society's advantages in
should be an end in itself. A good society is not measured solely in
natural and buman resources
terms of GNP. Without growth, however, the desire to achieve
will enable America to grow
greater equity in American society devolves into a struggle over life
and remain the most prosper-
preservers on a sinking ship.
ous society in the world."
Too often in recent years growth has been treated as a code
word for avarice. In fact, it is a synonym for opportunity. ABC
George N. Hatsopoulos
executives have made the most of the opportunity created by the
Chairman & President
nation's past commitment to growth. They want future generations
Thermo Electron
of Americans to have an even better chance to do the same. It is that
Corporation
motive, in essence, that led to the founding of the American Business
Conference. It is that motive, too, that will propel the organization
into the next decade and beyond.
19
Selected Readings
The American Business Conference, The Challenge of Global
Competitiveness: Views of America's High Growth Companies.
Washington: American Business Conference, 1987.
The American Business Conference, Reflections on Competitive-
ness: Views of Two Chief Executive Officers. Washington: American
Business Conference, 1987.
The American Business Conference, The Vital Link: Motivating
Student Achievement. Washington: American Business Conference,
1990.
The American Business Conference and McKinsey & Company,
Inc., Winning in the World Market. Washington: American Business
Conference, 1987.
Clifford, Donald K., Jr. and Richard E. Cavanagh, The Winning
Performance. New York: Bantam Books, 1985.
Hatsopoulos, George N., High Cost of Capital: Handicap of
American Industry. Washington: American Business Conference and
Thermo Electron Corporation, 1983.
Hatsopoulos, George N., Paul R. Krugman, and James M.
Poterba, Overconsumption: The Challenge to U.S. Economic Policy.
Washington: American Business Conference and Thermo Electron
Corporation, 1989.
McKinsey & Company, Inc., The Winning Performance of the
Midsized Growth Companies. New York: McKinsey & Company,
1983.
About ABC
Since its inception in
1981, the American Business
Conference has served as
the voice of the midsize,
high-growth sector of the
economy. Comprising 100
chief executive officers of
high-growth companies
with revenues over $25
million, ABC works to create
policies which promote
fundamental economic
growth, job creation and a
better standard of living for
all Americans.
American
Business
Conference
1730 K Street, NW, Suite 1200
Washington, DC 20006