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Ed Rogers' Subject Files
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This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
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Record Group/Collection:
George H.W. Bush Presidential Records
Collection/Office of Origin:
Chief of Staff, White House Office of
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Rogers, Ed, Files
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Subject Files
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04016-022
Folder Title:
Economic Summit [Fred Malek]
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15
23
1
00/12/10
08/20/1990 10:36 **** PANAFAX UF-600 ****
14712095 P.01
1990 ECONOMIC SUMMIT OF INDUSTRIALIZED NATIONS
734 JACKSON PLACE * WASHINGTON, DC 20503
202-408-0290 (FAX) 202-408-0298
July 16, 1990
MEMORANDUM FOR THE PRESIDENT
FROM:
FRED MALEK
SUBJECT:
1990 ECONOMIC SUMMIT
My deep thanks for the opportunity to serve in the
challenging position of Director of the 1990 Economic Summit.
The experience was intense, meaningful, and rewarding well beyond
my expectations.
Now that the event is behind us, I feel it is important for
you to have my perspective of some of my people who truly made a
difference:
Chuck Hagel. Chuck left his post as President of the USO and
served as my deputy full time, without pay, from January 1.
During the crucial early months when I was able to devote only a
portion of my time, Chuck was the organizer who developed a first
rate team and set them in the right direction. Chuck is a superb
manager with excellent political instincts and people skills. he
is not seeking a government position but could be a major player
in your Administration or the '92 campaign.
Homer Luther. Homer also served as a full time volunteer (i.e.
without pay), as Director of Events. He was responsible for all
events including the Western Night/Rodeo, Arrival Ceremony,
Official Dinners, motorcade rally/turnout, and the Thank You to
Houston night. He was outstanding in his motivation of our
people and in serving as the glue between our staff and the Host
Committee. However, his greatest contribution was his
creativity. Most creative ideas of the Summit came from Homer,
including the joint vs. separate arrival ceremony, the conversion
of Wednesday's motorcade to a modified parade with a great crowd,
and many others. He has a unique ability to generate ideas and
then execute them with color and pizazz. Homer also is not
seeking anything in government but is financially independent
from the sale of his business and could be recruited for the
right post.
08/20/1990 10:25 **** PANAFAX UF-600 ****
14712095 P.02
- 2 -
Pam Gardner. Pam handled contributions and liaison with and
handling of each foreign delegation. She is a first rate manager
with good judgement and the ability to make things happen. Her
staff raised over $3 million of cash and in-kind contributions.
She handled the difficult and complex task of country liaison
flawlessly. In fact, even President Mitterand went out of his
way to compliment us on the outstanding organization of the
Summit and the excellent cooperation given him and his staff.
Melinda Farris. As Director of Spouse's Programs, Melinda proved
to be a real pro. She is smart, highly organized, detail
oriented, and a good manager. She has her own events/PR firm,
and I would use her again and again to take on complex
assignments such as this one.
Dan Markley. As Director of Entertainment under Hagel and
Luther, Dan recruited most of the stars and produced the Tuesday
and Wednesday night shows. I thought he was particularly
creative in the Thank You to Houston finale, and he was able to
get all the stars, including the Opry, to perform at no cost. He
formerly directed all shows for the USO and could be very helpful
in future events.
Houston Host Committee. Working with a Host Committee in the
President's home town is a little tricky. We chose to develop a
large and powerful committee, and it worked extremely well.
Their greatest accomplishment was raising over $6 million to fund
the Sunday and Wednesday night events and the press food
pavilion. In addition, the Clean Committee generated a great
deal of excitement and results, and the entire group was
instrumental in maintaining local press interest. While Ken Lay
handled most of the management tasks of the committee, George
Strake came around and handled himself fairly well. All members
of the committee came away with good tastes in their mouths as
did Kathy Whitmire and Jon Lindsay.
All in all, once in a lifetime and totally enriching
opportunity. experience for me and my entire team. Thanks again for the
E7
ENVIROSUMMIT
1
9
9
0
SCORE CARD
#1
West Germany - good
#2 France - fair
#3 United Kingdom - poor
#4
Canada - poor
#5 United States — poor
#6 Japan — poor
#7 Italy - poor(est)
E-7
ENVIROSUMMIT
1
9
9
0
NOTE: The individual issue and country
scores are based on a 1 out of 10 scale.
In computing the overall percentage
SCORE CARD
scores, weighting of 20% each is given
to climate change, biodiversity and
population, 15% each to ocean
pollution and the global bargain,
41.5%
39.5%
65%
42.5%
39%
48%
41.5%
and 10% to environmental aid to
Eastern Europe.
US
JAPAN
GERMANY
UK
ITALY
FRANCE
CANADA
Global Climate Change
3
3
7
3
5
5
3
and Energy
Protection of Biodiversity
6
2
6
4
2
5
4
Ocean Pollution
5
5
6
5
5
4
5
Population
2
6
7
5
2
5
6
Environmental Aid for
6
4
8
5
4
6
2
Eastern Europe
Global Environmental Bargain
4
4
4
4
/
4
4
26
24
38
24
19
29
24
THE WHITE HOUSE
Office of the Press Secretary
(Liouston, Texas)
For Immediate Release
July 11, 1990
NEWS CONFERENCE OF THE PRESIDENT
Assembly Hall
George R. Brown Convention Center
Houston, Texas
12:59 P.M. CDT
THE PRESIDENT: Thank you all very much. And I have a
brief opening statement, and then I'll be glad to respond to your
questions.
My colleagues from France, and the United Kingdom,
Germany, Canada, Italy, Japan, and the European Communities and I
have just completed this 16th meeting of the leaders of the largest
industrialized democracies. This, the first Economic Summit of the
postwar period, celebrates the resurgence of democracy and free
markets around the world.
Over the past three days we've had full discussions on
the key issues of our times: advancing political and economic
freedom; promoting sustained economic growth, both in developed and
in developing countries; assisting the transition to market economies
in Central and Eastern Europe and, indeed, in the Soviet Union; and
protecting the environment.
We are united in a common goal to extend to those who
seek political and economic freedom a helping hand with cur
resources, talents and experience. As our declaration states, when
people are free to choose, they choose freedom.
We identified the successful completion of the Uruguay
Round o£ global trade talks as one of the highest economic
priorities. We recognize that agreement on fundamental reform of
agriculture is critical to achieving this goal. We commended the
report by the Chairman of the GATT Agriculture Group -- the de Zeuw
report -- to our negotiators as a vehicle to move these talks
forward. And we also committed to maintain our personal involvement
and to exercise political leadership at every step along the way as
we move toward the final ministerial meeting in December.
On the Soviet Union, we discussed our common efforts to
assist the Soviet reform effort -- the success of which is in our
common interest. In addition to offering the Soviets technical
assistance, we've asked the IMF to coordinate a major study of the
Soviet economy and make recommendation for its reform. In keeping
with the agreements reached here, I will be conveying to President
Gorbachev the results of our deliberations.
We achieved major progress on the environment,
particularly on climate change and forests. We committed to finish
the negotiations on a framework climate change convention by 1992.
In a first, we agreed that implementing protocols should consider all
sources and sinks of greenhouse gases -- consistent with the
comprehensive approach that we recommend. We agreed to launch a
special effort to address the deforestation in the rain forests -- a
concern that was very forcefully raised by Chanceller Kohl. I found
a very receptive audience for my proposal that a free-standing global
forest convention be negotiated without delay and we agreed to
move ahead on this rapidly.
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In short, this was a summit that addressed itself to a
rapidly changing world. We agreed to welcome, respond to, and manage
the changes -- on behalf of free markets, free political systems, and
a better life for people everywhere. It is no small achievement that
we came to a positive and unanimous conclusion on so many important
and difficult issues. And I would stress those two words -- positive
and unanimous.
And I want to congratulate my colleagues on the results
of the collective effort. I think they left feeling good. We had a
very generous letter to our Secretary of State just now from Prime
Minister Mulroney, and he's a veteran of these summits. And I must
say to the Canadians here, I once again benefited from his -- not
only his commitment, learned from his commitment on certain issues
like the environment, but benefited from his advice.
I also want to thank the two Secretaries that were at my
side Secretary Baker and Secretary Brady; Ambassador Carla Hills,
Secretary Yeutter, Secretary Mosbacher, who worked with their
colleagues and others at this summit. I want to thank the Sherpas.
Most of them stayed up -- I understand they all stayed up until 4:00
a.m. this morning in ironing out this Final Communique.
So it was a team effort, and I think most of our well,
I think all of our summit participants left feeling good about this
particular summit.
And now, I think Terry Hunt has the first question.
=
Mr. President, I'd like to ask you about Soviet aid.
Is this six-month study of Soviet needs a way of delaying the
political decision on aid, or at the end of that, will the United
States make a commitment to send some cash to Noscow?
THE PRESIDENT: It's not an effort to delay anything. It
is, as we said in the report, a step towards assist in the reforms.
And I'll make clear to President Gorbachev that he ought to view this
outcome of this summit very positively. You may remember that in
London only a few days ago, I gave my views on the U.S. lending money
at this time. So it's not an effort to forestall anything, it's an
effort to move forward, encourage forward motion and be helpful to
the Soviet Union in terms of reform. They need much, much more
reform. And they're the ones that say this. And in Gorbachev's
letter, he asked for assistance in many areas personnel management
and how they change their systems. And we've already started
bilaterally, as have other countries, in trying to assist. So it's
really a coordinated effort to help the Soviet Union.
C Well, in six months then, can Mr. Gorbachev expect
that the United States would be sending some financial assistance to
meet these needs?
THE PRESIDENT: Not particularly. Not necessarily. But
what he can expect is that we will have been helpful to him in the
reforms that he knows that he has to undertake. And maybe this could
lead to support. But there are things that have to happen. And I've
been very up front with him personally and then in public statements
as to what has to happen for the United States to send money. And,
incidentally, I don't I'm trying to think on the Gorbachev letter
-- I don't think there was a request for sending money. And then I
also told our Soviet partners that we had some problems legal
problems the settlement of this Kerensky Debt for example, before
we would be free to give more, like financial support.
So I wouldn't set a time frame on when and if the United
States decides to go forward. But I must say that I hope he will --
I hope the Soviets will view this as positive. And, indeed, I've
contacted Mr. Gorbachev already by cable telling him I want to talk
to him about the summit, and telling him why I felt that it is
positive; and also congratulating him on his landslide win. Certain
readings I was doing before then, I wasn't sure that it was going to
work out quite that way. But he's in the political arena and he did
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pretty darn well; and I congratulated him.
C
Mr. President, for 40 years we've spent untold
billions to fight the Soviet Union. Is it conceivable, as you and
Secretary Baker have portrayed, that the U.S. -- American taxpayer
would not be willing to spend a dime to help them now?
THE PRESIDENT: We are trying to help them now. And I
think we're going to send the kind of help that in the long run will
be most beneficial to them. And they need reform, and they know it.
And we're going to try in every way to facilitate that reform because
we are in a very different age. But we have some problems. I'm not
particularly enthusiastic about the intercontinental ballistic
missiles aimed at U.S. cities. I find it a little contradictory to
think that they will continue to spend $5 billion a year for Cuba, a
totalitarian system whose leader is swimming against this tide of
democracy and freedom that is lifting up most hopes in the Soviet
Union. So certain things have to happen before I, as President, will
make recommendations for direct financial aid. So what we're trying
to do is carry our part of the load in helping the reforms.
Q
In your discussions, why did Germany and other
countries think it's necessary now?
THE PRESIDENT: Well, Germany has some very special
interest that we understand. And we're not -- as I said over in
London, Helen - we're not urging everybody to march in lockstep,
just as in our programs for Central America -- I want to see more
help from the G-7 and the G-24 and anybody else who will listen to
help the democracies in Central and South America.
And they've got certain priorities and I hope they will
be able to help in this way. But if we go forward as we have in
assisting Nicaragua and Panama, I don't feel that everybody has to
move in lockstep on that support for democracy.
C
Mr. President, the Final Communique here reflecting
your views in no small part on agriculture subsidies calls upon each
nation to "make substantial progressive reductions in support and
protection of agriculture." Does this mean, sir, that you're
prepared to ask Congress to abolish some of the more notorious forms
of support and subsidy that are part of our farm program?
THE PRESIDENT: Absolutely. And we have to do it and
it's a two-way street. And I expect there would be some political
opposition, because like many of these countries, we protect. But I
am convinced, and I believe Congress would support the concept, that
if we all do this and we all reduce barriers and we all make a freer
trading system, that the United States can compete. But I'm sure I
would have some obstacles from the supporters of certain programs
that have been in existence for a long time.
But that's a little down the road now. And I think as
far as the EC goes, it's a little down the road. So what we're
trying to do is move the whole thing forward without saying that we
have to have tomorrow totally unprotected trade. I'd like to shoot
for that some day. I've said that before.
Q
Well, how soon, sir, will you be going to Congress
with a legislative package to begin to undo --
THE PRESIDENT: As soon as we see what progress is made
in the GATT. That's where the next action is, is in these talks that
are coming up I think it's just on the 23rd of this month or
sometime. That's why I think this language that we worked out and
that all of you have I think now is encouraging. Because we all know
that agriculture has been a major stumbling block.
And my Special Trade Representative, Carla Hills,
impressed on me the need to move that particular category forward,
and that's why and we did get agreement. But the next step before
we talk about needing a legislative package is to get agreement out
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- 4 -
of the GATT.
Q
Mr. President, if the study delays a decision on aid
to the Soviet Union beyond German reunification, would it not be
expected that there would be a lessening of interest in the summit
countries in helping the Soviets if the German unification question
is resolved by that time?
THE PRESIDENT: No. I think events are changing so fast
that different countries are going to look at this with slightly
different senses of priority. But in the meantime, this study will
go forward. We have sent, in a bilateral sense, many missions to the
Soviet Union. Alan Greenspan was over there on his own, we've had
Dick Thornburgh over there talking about helping reorder the justice
system. We have people from the stock markets over there. We've had
a wide array of individuals and groups of business people go. And so
that process of trying to assist in change and in reform is underway
bilaterally.
But this look that the IMF will coordinate and be done by
these other agencies will kind of give an official - at least for
the G-7, we will look at it in rather an official way and then see if
we can decide on more collective action at the next summit or whether
we proceed individually on a case-by-case basis.
Q Mr. President, on the question of the environment,
you in the past, and your Chief of Staff, to say at least two; have
always said that there has not been enough information; you needed to
study more. Now you're prepared to move, particularly on the global
warming question. Who twisted your arm? What changed your mind,
sir?
THE PRESIDENT: I think we're moving forward because we
recognize there is a problem. I thought we called for more data in
here. Clearly, we need more. When you take the NASA study -- and
then some people point to that as challenging the concepts of global
climate change - why, I think everybody -- well, put it this way --
everybody at this summit agreed that we needed more scientific
information.
But the steps that we've recommended here in this
communique we can enthusiastically endorse. So I think we came out
with a reasoned position, not a radical position that's going to
throw a lot of American men and women out of jobs. And yet, we've
done an awful lot, and I think others at the summit recognized it, in
terms of cleaning up the air. We've got a proposal, and I told them
proudly of it, to redo our Clean Air Act, and they were very much
impressed with that. You might have heard Prime Minister Mulroney's
supportive comments about that.
So there's a lot of things working bilaterally in terms
of emissions, and I think we have a very reasonable position at this
point.
Q If I could follow, there seems to be a little wiggle
room on CO2. Are you making a clear commitment to do something about
it?
THE PRESIDENT: I wouldn't read anything into these texts
beyond what is actually printed there.
Q I understand that it would take some time for the
Soviet economy to reform. But are you suggesting when you link
Soviet aid to arms control that you could never imagine any direct
aid, so long as there are any Soviet weapons aimed at the West?
THE PRESIDENT: No, I didn't say that. But I would
really prefer to stand on what I've simply said. The world is
changing very fast. But they know that we've got some big
difficulties on the regional questions and on the fact that a lot of
missiles are aimed at the United States. A good way to start in
doing something about that is to have a successful conclusion on the
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START treaty.
So I don't want to go beyond where we are right now. If
you'd have asked me last year at this time if I could have predicted
the rapidity of change, I would have -- the changes that have taken
place, I couldn't have predicted them. So I don't know exactly where
we will be. But I do know that this proposal we've made is sound.
Q Do you think if the IMF does say that some direct
aid is necessary that perhaps that would spur greater arms control
movement?
THE PRESIDENT: Excuse me, the IMF says what?
C If the IMF study suggests that direct aid is
appropriate, do you think that in turn could stimulate or speed up
the arms control on behalf of the Soviets?
THE PRESIDENT: I would think -- I would hope so. I
would take I think Gorbachev is committed to a fast track on
strategic arms.
Q On aid to the Soviets, you keep saying that the
American people simply aren't ready to give cash to Gorbachev. Now,
if the IMF comes back with a report, Gorbachev accepts some of those
recommendations, they cut way back on aid to Cuba - largely which
consists of oil shipments, after all, not money - he does these
things you want, are you ready before the 1992 presidential campaign
to go out there and tell the American people you would send American
cash or credits, supply credits to Gorbachev?
THE PRESIDENT: Your question is too hypothetical. I
can't go into a hypothesis like that. And we will wait and see.
We've taken a path. It's based on the facts right now. And I would
just say that I think Mr. Gorbachev understands that at this
juncture, sending money from the United States is not in the cards.
And he knows what needs to be done to change the formula. And I'd
like to think he's going to try. And maybe he'll come out of this
Congress where many predicted his demise and feel encouraged to go
forward. But I'm not going to answer a hypothetical question of that
nature.
Q Let me ask you this. You got some sort of a delay
on aid to the Soviets because of this study which will not be
completed until December. A lot of people are painting this summit
as they did the NATO Summit as a victory for George Bush across the
board, whether it's cutting agricultural subsidies, or Europeans, or
whether it's the environment. What didn't you get at this summit
that you wanted? What did you lose here?
THE PRESIDENT: In the first place, I don't I'm glad
to hear that, but I don't really, honestly, we don't look at it as
a victory for one side and a defeat for another. That's the good
thing about this G-7 group. And so there weren't any winners or
losers in it.
But there was compromise along the way. But again, I'm
not going to reopen the hard work that went into this agreement by
saying what we would like to have had that was different. But it did
work out in a way that I can strongly support. But again, excuse me
for not projecting winners or losers or helping you with what we got
and what we didn't get.
Q Mr. President, at the NATO Summit and then again
here, it seems as though you have developed a special working
relationship with Chancellor Kohl. I wondered -- one of the German
delegation also said that after you had supported him on Soviet aid
he couldn't come back and not support you on the environment. Can
you describe that relationship and would you say that's a fair
assessment?
THE PRESIDENT: It's not a fair assessment because he's a
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bulldog when it comes to the environment. He's a fighter for what he
believes in. And I think he felt satisfied with what he got. And
maybe he would like to have had more. But when we focused in on this
forestry agreement and on the question of the rain forests, I think
Chancellor Kohl felt that he had achieved something that he came here
to achieve.
But the relationship is it's hard to explain. I do
think that the Germans appreciate the fact that we have stood at
their side on this question of German reunification. I think that's
an element. But there isn't any quid pro quo. There was no I owe
you one cr I want to pay you for taking what we feel is a principled
position in terms of German reunification. And he fought hard. And
there were some compromises in terms of wording. But I think the
declaration in terms of reforestation and the forestry agreement and
the Amazon all speak to his keen interests.
And so I hope that he will be able to tell his
constituencies and all the German people that there is a new
awareness and a heightened awareness because of the eloquence that he
brought to bear on the question.
Q
Would you say, however, that you find more common
ground or common interest with Chancellor Kohl now than you would
perhaps with Margaret Thatcher?
THE PRESIDENT: No, I wouldn't say that at all. But I
find plenty of common ground with both. Nice try. (Laughter.)
You're going to get me in trouble; they haven't even left town here.
Q I have two questions about the summit's kind of do
your own thing on Soviet aid. One, is it really good for the
Alliance? And number two, doesn't it bode poorly for America's
leadership in the Alliance?
THE PRESIDENT: No, I think, without reopening the
hypothesis of the earlier question about how the Americans faired, I
think we're doing all right in the Alliance. And it doesn't work,
Cragg, that you have to march in lockstep on all these questions.
We're not I don't feel that I have to defer on a lot of questions
that we initiate on loans to the C-7. And I don't think they should
have -- these individual countries who have very special agendas and
special relationships I don't think that they should defer to us
on these questions.
Now, when you get into some arms control initiatives or
matters of that nature, why, obviously, you want to stay together as
much as can. And as the world I don't worry about that; I don't
worry about it all.
C
Isn't it drawing it a little fine, though, to say
arms control, yes; but Soviet aid to the Soviets which really,
there were no conditions placed on that could be used for
anything. German aid that could be used for anything. Isn't that --
THE PRESIDENT: Well, you may be a little ahead of me on
what the Soviets plan to use the German aid for; aid that has not yet
been forthcoming. I understand that Chancellor Kohl is going to
Moscow, I think is that correct - within the next couple of
weeks. But we don't know that as to what conditions will be on the
funding and how it will be used in the Scviet Union. But I gave him
our position. He gave me his. But that's not enough to break up a
strong alliance and a very comfortable and strong relationship --
bilateral relationship between the Federal Republic and the United
States.
C Mr. President, on the forestry, there are a number
of sentences in the declaration talking about the importance of
preserving forests globally. What impact would that have on the
American domestic field? Would it, for example, change the balance
that your administration has been trying to strike on the issue of
the Pacific Northwest forests and the Spotted Owl there?
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?e
- 7 -
THE PRESIDENT: No. We are committed to prudent forest
management, but we're also committed to planting a billion trees a
year and putting real emphasis on reforestation. So I don't think
there's any contradiction. Some would argue, some of the purists in
the environmental movement, that you've got to stop where we are, not
harvest any lumber at all. And some of it would be done in the
protection of the owl, and some because they're opposed to harvesting
the old growth forests. I don't share that view. And I do think we
can find a balance where the net is an increase in the numbers of
trees.
Q If I could follow up, what response do you have to
the people in Third World countries who argue that you're asking them
to make sacrifices on their economic development that you're not
willing to ask American workers to make parallel sacrifices?
THE PRESIDENT: I think we have to find ways to assist
those who would take that view. And I think many of our countries
will move forward - and did not have great respect for the
environment and now are doing a good job on it -- and I would put the
United States in that category, with pride I might say should find
ways to assist these countries.
Q
Back on agriculture, Mr. President. You said that
you were encouraged about the language on agricultural subsidies.
Could you say why, specifically, when the U.S. gave in on the key
question of allowing one common measure to be used for all subsidies?
And also on a separate matter, could you tell us whether you got any
commitment for help from your allies on the Latin American aid
initiative?
THE PRESIDENT: Not being a technical expert on these
highly technical GATT negotiations, I relied heavily on advice from
experts like Carla Hills, who is one such an expert. And Clayton
Yeutter, Bob Mosbacher involved also. And these people who have been
wrestling with the technicalities of the trade question were very
pleased at the formulation we came up with. They felt without such
formulation the whole successful conclusion of the GATT Round was at
stake. But they think that the wording we have that refers
peripherally to this de Zeuw report is enough now to move the
agricultural discussion forward when they meet soon again.
What was the second part? I don't know on the others. I
know that some of them have expressed an interest in helping, but I
didn't ask for a collective decision out of the G-7 on that question.
Q Mr. President, the Soviets have already reacted
negatively to advance word of the part of the communique that says
that they should reform if they that reform would help them get
further aid. What would you tell Mr. Gorbachev when you speak to him
why he should not view this as the allied countries saying the Cold
War is over; you lost; here's what you have to do; here are our
conditions for integrating you back into Western society?
THE PRESIDENT: I think you phrase it well, because we've
got to be careful that we don't send the signal that we don't want to
send. But I don't worry about this one because I sat up there at
Camp David with Mr. Gorbachev in a very frank discussion and told him
the problems that I have with going forward with financial aid. I've
been quite open about it in the press conference following a highly
successful NATO Summit.
And incidentally, I think the reaction from the Soviet
Union on the NATO Summit has been extraordinarily positive,
extraordinarily so. And some of that, I think, has been masked by
the understandable attention given to the G-7 meeting here. But it's
been extraordinarily positive.
And so far, I think put it this way: it just totally
diminishes the risk of the kind of misunderstanding that your
question implies. Now, you saw the lively debate in the Peoples
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- 8 -
Congress. It looks like our own Congress up there yelling at each
other and debating and calling people names and doing all these
frantic things. So I'm not saying that somebody's not going to jump
up, having finished trying to filet Gorbachev and jump on me for the
way we've reacted in this summit. I am saying that I am not going to
have misunderstanding creep in because of failure to communicate.
And, indeed, I've already sent off a communication to Mr. Gorbachev
and I will be in touch with him personally very soon to discuss this.
But I don't think there's too much of a danger of that.
Q If I could follow up. In his letter to you in your
role as host of this summit, did he ask for direct cash aid?
THE PRESIDENT: I need help on that, but I think not. My
reaction is that he did not ask for that. I know he didn't have a
price tag on it. But he listed several categories of places where we
could give support, including credits.
Bob, was that a proper answer? I don't want to -- okay.
So I was right.
Q Some of your colleagues accused you of a double
standard, Mr. President, in supporting language yesterday that opened
the door to lending to China, particularly of it moves toward
economic reforms, and yet, taking the much less flexible position
regarding the Soviet Union. How do you respond to that?
THE PRESIDENT: I respond by saying we already have
sanctions on China because China has not moved forward far enough on
human rights. Those sanctions remain. We have offered the hope that
if they take further steps in the human rights field, more can be
done. We've said that we, for our -- all of us together would
consider World Bank loans - which right now are discouraged by the
G-7 consider World Bank loans that would contribute to the reform
of the Chinese economy. And then I think we added a little thing
about especially those that would help on this world environmental
problem.
So my answer to those is that they're wrong and that the
pressure is still on. And let's hope it will not be
counterproductive. Again, my position is -- and I think every summit
leader there agrees with me -- everyone, I believe that we should
not further isolate China. There have been some things that we can
take some encouragement from. But the sanctions are on China. We
took the lead on this question a year ago at the G-7 Summit, and some
who criticize me fail to realize that. But I want to see them move
forward, and I want to see restored good relations with China. But
we're not there yet.
Q
Do you believe that financial aid could play a role
in stiumlating reforms in the Soviet Union?
THE PRESIDENT: Well, some think that. I don't
particularly agree with that. I think when you see the Japanese move
forward as they plan to do to keep a commitment -- they feel a solemn
commitment to China for this third yen loan, that they feel that
way. I have great respect for Prime Minister Kaifu, and I had a long
talk with him about that. As you know, they plan to move forward.
Just as I can't get all exercised over what Chancellor Kohl does, I
feel the same way about what Prime Minister Kaifu is doing. But he
feels that the step he is about to take would encourage reformers.
I'm not sure that he's right in this regard, and I think that the
people in power there can build on the steps that they've taken in a
way to satisfy the rest of the people in the G-7 that we should go
back to more normal relations.
Q Mr. President, a follow-up on Cragg's question. In
the past, the United States did call the tune on allied relations
with the Soviet Union. Now that we're seeing key allies going their
own way on aid to the Soviet Union, aren't we seeing at least a
subtle change in the way the United States has to lead the Alliance?
Aren't you having to give a little more leeway to the allies now that
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- 9 -
the Cold War is over?
THE PRESIDENT: We're dealing in entirely different
times. Earlier on, in terms of the Alliance, we had a much more
formidable military opposition. Now we see the Warsaw Pact in almost
a state of disarray; we see troops coming out; we see democracies
replacing totalitarian systems. So you have an entirely different
era. For the United States' side, I think we have very good
understanding inside the G-7 about the Soviet Union. But if your
question is, is it bad or does it alter the U.S. role if Chancellor
Kohl, for very special reasons, goes forward, I would argue that it
does not.
Q Mr. President, there's a lot of concern over
President Gorbachev's ability to hold on to power. Does his victory
yesterday suggest he will be around for a good while despite his
serious economic problems?
THE PRESIDENT: I don't know yet, but certainly he's
surprised a lot of us in this room, hasn't he -- including me. Who
would have thought he'd have a 3-to-1 victory or whatever it was? I
had the figures at the tip of my tongue a while back because it was
an impressive landslide inside a body where, if I had gone by just
some impressions, I wouldn't had thought he had gotten quite that big
a rule big a landslide. So I don't know. And I think there's
some discontent inside the Soviet Union. I think he's got enormous
problems. I hope that what we're doing to help here will help with
those problems. But certainly, I'd have to leave it there because I
couldn't go beyond that. And I think if you go to experts you'll
find divisions on that question.
Q
You don't think the election proves that he has a
grip on power now?
THE PRESIDENT: Well, I think it does at this juncture,
certainly in terms of the party and certainly I think the way he's
handling his foreign affairs is probably getting great credit at
home. I do understand there's consumer concern and that everybody,
including Mr. Gorbachev and Mr. Shevardnadze, recognize that they
have enormous economic problems inside the Soviet Union.
Q
Mr. President, on an issue outside the purview of
this summit, your son Neil has suggested that the savings and loan
regulators are conducting something of a vendetta against him,
largely because his last name is the same as yours. Do you agree
with that charge?
THE PRESIDENT: I agree that the President ought to stay
out of it and that the system ought to work. And I have great
confidence in the integrity and honor of my son. And beyond that, I
say no more. And if he's done something wrong, the system will
digest that.
This is not easy for me as a father. It's easy for me as
a President because the system's going to work. I will not
intervene. I have not discussed this with any officials and
suggested any outcome. But what father wouldn't express a certain
confidence in the honor of his son? And that's exactly the way I
feel about it. And I feel very strongly about it. And for those who
want to challenge it, whether they are in the Congress or elsewhere,
let the system work. And then we can all make a conclusion as to his
honor and his integrity.
And it's tough on people in public life to some degree.
I've got three other sons, and they all want to go to the barricades.
Every one of them, when they see some cartoon they don't like,
particularly those that are factually incorrect and total --
demeaning of the honor of their brother, they want to do what any
other kids would do. And I say, you calm down now. We're in a
different role now. You can't react like you would if your brother
was picked on in a street fight. That's not the way the system
works.
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- 10 -
But we have great emotions that I share with Barbara, I
share with my sons and my daughter that I won't share with you except
to say, one, as President, I'm determined to stay out of this and let
it work and let it work fairly; and secondly, I have confidence in
the honor and integrity of my son. And if the system finds he's done
something wrong, he will be the first to step up and do what's right.
Q Does the same confidence, sir, extend to William
Seidman, who has Democrats as well as Republicans --
THE PRESIDENT: He wouldn't be there if I -- well I don't
know about I was about to say he wouldn't be there if I didn't
have confidence in him. I have confidence in his integrity and his
honor.
Last question.
Q
Mr. President, the environmental groups that were
very much in evidence here, don't seem too happy with the results of
the summit.
THE PRESIDENT: They haven't seemed happy with me for a
long time. And I'm not too happy with them. I think their grading
system is absolutely essentially absurd. But what's the question?
(Laughter.)
Q
Sir, the question is they're calling your
forestation initiative a figleaf to cover up your inaction on the
environment. A second portion of this question is why did you leave
Bill Reilly home when last year you brought him to Paris when you
weren't even planning to put him in the Cabinet?
THE PRESIDENT: Last year many of the environmental
ministers were there, and including some of the people -- you
remember that was the Paris centennial. And many from other
countries were there as well. So he was not here for that reason.
Nor were other secretaries whose counterparts were not here. So that
was the reason. This is predominantly an economic summit. But lest
anybody have any doubt about it, Bill Reilly retains my full
confidence and my full support. I have great respect for him.
What was the rest of your question?
C They call the forestation initiative a fig leaf to
cover up your inaction on global warming.
THE PRESIDENT: Look, come on, I'm not going to respond
to those groups that have been attacking us every time we turn
around. And you cannot appeal -- I have to be careful because there
were some reasonable people involved but on the environmental
extreme, they don't want this country to grow. They don't want to
take the look down the road at the human consequence of men and
women thrown out of work and families put into a whole new state of
anxiety. And I as President have to be concerned about that, as well
as being a good custodian, a good steward for the environment. And
so -- but we cannot govern by listening to the loudest voice on the
extreme of an environmental movement.
And I did not rely heavily on them for support in getting
elected President of the United States. And I'm not going to be
persuaded that I can get some brownie point by appealing to one of
these groups or other. And the attacks that they made on some of my
summit partners, I resent them, too. Because it's not just the
United States, in attacking the President or the policies of the
government, it's the attack on some of these other leaders. So
they're entitled to their opinion. Their signs can be held just as
high as others, and their rating systems can attract as much or as
little attention as you care to give them. But I am not going to
shape the policies when I know we have sound environmental policies
by the loudest voice or the biggest sign.
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So they're welcome to Houston. I hope they've enjoyed
it. I hope they feel they've had an opportunity to get their message
out. But I had a little cloakroom conversation with some of the
participants, and I think most of them are disinclined to change
policies in their countries that they think are sound because of some
of the statements that I saw and perhaps some that you were referring
to here. So I'd say, welcome, and we'll listen and keep trying to do
better. But I'm determined that we can find a sound environmental
path -- and I think we've found it -- continue to be good stewards
for the environment, and still have some concern for the working man
and the working woman in this country. And that really is what it
boils down to when you talk about no growth. And I'm not going to
talk about no growth for the United States because I feel a deep
concern about the human equation as well as the environment.
I was very pleased with the mood amongst the summit
leaders as a result of the common ground that we hammered out on the
environment here.
Thank you all very much.
END
1:40 P.M. CDT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF THE COUNCIL PRESIDENT * STATES PUMLITY THE UNITED
COUNCIL ON ENVIRONMENTAL QUALITY
WASHINGTON, D.C. 20500
Michael R. Deland
(202) 395-5080
Chairman
June 26, 1990
MEMORANDUM TO GOVERNOR SUNUNU
GENERAL SCOWCROFT
DICK DARMAN
BOYDEN GRAY
FROM: MIKE DELAND Mir
Re: CLIMATE CHANGE AND THE HOUSTON SUMMIT
SUMMARY:
International and domestic interest in the environmental
component of the Houston Summit is piqued by the prospect of
seeing how the G-7 countries which hold differing positions on
the global climate issue handle those differences in this
consensus-based forum.
Generally, we have not yet done an adequate job of telegraphing
realistic expectations in this area to the public, and
specifically, we have yet to determine the best way of comparing
U.S. efforts in the climate change area with the other G-7
countries.
RECOMMENDATION:
The President announce in Houston that the United States will
essentially cap its emission of "greenhouse gases" until the year
2000 by which time we will have better scientific understanding
of the certainty, timing and degree of climate change and the
relative effectiveness and efficiency of various response
strategies.
Recycled Paper
-2-
RESULT:
While the G-7 countries are nowhere near unanimity in responding
to this issue (though the Europeans are focusing almost
exclusively on controlling CO2), all are eager for political
reasons to show some real steps. Using our influence as the host
country and the fact that the summit needs a consensus
communique, the above recommended position is one which the other
G-7 countries could perhaps support.
For the United States, it shows that we have followed through and
implemented the "Baker plan" (or "no regrets" strategy) with an
extraordinary degree of effectiveness. While not agreeing that
major and detrimental man-made climate change is inevitable, we
have acted prudently in taking steps to control "greenhouse
gases" which make sense for other reasons.
The good news is that as a result of these prudent steps, the
United States economy can continue to grow at unimpeded,
projected rates with no net increase in our emission of
greenhouse gases for the next decade.
Ancillary benefits to this approach include the fact that the G-7
countries by agreeing to this implicitly agree not to treat the
various greenhouse gases separately, but to use a comprehensive
approach based on their warming potential. Moreover, it
incorporates into any greenhouse gas calculation the benefits of
greenhouse gas sinks such as forests and oceans. Both of these
are necessary steps towards the possible establishment of an
international market for greenhouse gas emission permits.
While there is a question as to what happens in 2000 when
economic growth begins pushing U.S. greenhouse gas emissions
(e.g., carbon) beyond the point of stabilization, we need not at
this point commit to any targets other than those which we are
already equipped to achieve.
U.S. BACKGROUND:
Current emission reduction trends which have been bolstered by
Bush Administration initiatives fall into several categories:
fixing carbon emissions, preventing carbon emissions, preventing
smog-forming emissions which serve as greenhouse catalysts,
controlling methane emissions (generally by converting them into
less heat trapping efficient carbon emissions through
combustion), and phasing out CFCs.
-3-
Together, these initiatives will reduce our greenhouse gas
emissions from projected levels in the year 2000 by almost 25
percent. This reduction is sufficient to offset those projected
emission levels one-for-one. Consequently, the United States is
at or near stabilization.
cc: Bob Grady
Tim Deal
1990 ECONOMIC SUMMIT OF INDUSTRIALIZED NATIONS
734 JACKSON PLACE * WASHINGTON, DC 20503
202-408-0290 (FAX) 202-408-0298
any polit
May 23, 1990
CR
Concerns
MEMORANDUM FOR JAMES A. BAKER, III, Secretary of State
NICHOLAS F. BRADY, Secretary of the Treasury
JOHN H. SUNUNU, Chief of Staff
BRENT SCOWCROFT, Assistant to the President for
National Security Affairs
FROM:
FREDERIC V. MALEK 7am
This memo provides a brief update on our progress with the 1990
Economic Summit of Industrialized Nations. Overall we are on
schedule and do not perceive any major problems. Now that most
plans and schedules have been approved, we are turning our
attention to the detailed preparation and execution. To this
end, by June 1, we will have relocated our main base of
operations to Houston. The following highlights recent progress:
President Bush Visits Summit Headquarters
On May 19, The President stopped by Summit headquarters in
Houston to personally thank the volunteers and staff for their
efforts. It was a big morale booster to all of our people. Jack
Steel of the Host Committee did a fine job of orchestrating the
Presidential drop-by.
Summit Schedule Review
We will be conducting a comprehensive review of the detailed
Summit schedule with your representatives on May 29. We intend
to get everyone's input and thoughts on the schedule before we
finalize it.
Summit Events
Homer Luther, a very successful local businessman, native
Houstonian, and former Presidential advance man, came on board
last month as Director of Summit Events. Homer served as
Director of Events at the 1988 Republican Convention in New
Orleans. He has been a very effective and natural link between
our Summit staff and the Houston Host Committee. Under Homer,
there is also an event site director in charge at each location.
For example, Lloyd Hatcher (formerly head of events at Georgetown
University) is the site director for the Tuesday evening dinner
and entertainment at the Fine Arts Museum.
-2-
Homer is serving as a full-time volunteer. In fact, four of our
senior full-time Summit organizers are all serving without
compensation.
Wednesday Evening Thank-You Gala
We have consolidated the original two "thank-you" events into one
event to be held at the University of Houston. The President and
Mrs. Bush will attend a reception to thank the key Houston Host
Committee leadership in the Architectural Building on the campus.
Following, everyone will move to an outside area of the U of H
for brief remarks by the President to the Houston Summit
volunteers. This will be followed by a live concert highlighting
a number of entertainers who we will announce later. We expect
nearly 8,000 volunteers to attend. This will be an opportunity
for the President to thank the people who helped make the Summit
a success.
Foreign Delegations Site Surveys
The second delegation site surveys will be held in Houston on the
following dates:
May 23 - 24
Canada
June 6 - 7
France
June 8 - 9
Japan
June 12 - 13
Germany
June 13 - 14
European Communities
June 15 - 16
Italy
Great Britain feels it does not need to participate in a second
site survey.
Summit Staff
As mentioned earlier, the entire Summit staff organization will
be in place in Houston by June 1. Our staff will remain in
Houston until after the Summit. While many on our staff are
detailees from various government agencies and departments, there
are still a number of individuals who will be seeking employment
after the Summit. We have been in touch with Presidential
Personnel to set up a personnel system for Summit staff who will
be looking for positions in the administration after August 1st.
-3-
Volunteers
The Houston Host Committee has done an excellent job of
recruiting volunteers to help support the Summit staff's
activities as well as assisting in the clean up and presentation
of the City of Houston in preparation for the Summit. The
Houston volunteers and the Summit staff are melding together very
well and the cooperation between the two is going smoothly for
the most part. Both Summit staff and the volunteers are sharing
offices at the Kirby Mansion. We are all grateful for the
efforts being made by the Houston volunteers, which, of course,
also enables us to hold personnel expenditures down.
Summit Theme
Dick McCormack has had three productive Sherpa sessions aimed
toward framing an agenda. With this backdrop, we anticipate that
following the Bush/Gorbachev Summit, even more attention will be
focused on development of a general theme for the Summit.
Should you have any questions, or need to contact me regarding
our plans, I can be reached in Houston at 713/853-0400 after May
30th. Thank you for your support and I will continue to keep you
advised on our progress.
1990 ECONOMIC SUMMIT OF INDUSTRIALIZED NATIONS
734 JACKSON PLACE * WASHINGTON, DC 20503
202-408-0290 (FAX) 202-408-0298
THE HAS SEEN
May 10, 1990
PRESIDENT 5: 5:57
some
MEMORANDUM FOR THE PRESIDENT AND MRS. BUSH
FROM:
FREDERIC V. MALEK
AM
SUBJECT:
Summit Dinner Entertainment
Following are two program options for the entertainment portion
of the Summit Dinner scheduled for Tuesday evening, July 10 at
the Fine Arts Museum. These suggestions are based on a one hour
program consisting of consummate American entertainers from
varied fields.
Each program option is designed to create a balance of tone,
mood, variety of entertainment and performers. However, if you
choose, the options may be mixed. The small and intimate
entertainment space at the museum was also taken into
consideration in the selection of performers.
PROGRAM OPTION 1
Master of Ceremonies: James Earl Jones
Program: Michael Davis (5 minute performance)
Mr. Davis has performed at The White House, for the
Inaugural Gala and at many Republican National
Committee events. He is one of the premiere jugglers
in America.
Ricky Skaggs - confirmed (12 minute performance)
Mr. Skaggs, one of the most renowned bluegrass
instrumentalists and country music stars in America,
would perform with two or three acoustic musicians and
possibly his wife, Sharon, of the gospel group "The
Whites.
Marilyn Horn (15 minute performance)
Ms. Horn, one of America's truly legendary opera
prefer stade Family
singers, would perform with piano accompaniment.
Note: If Ms. Horn is not available, or if there is a
preference, we would approach Fredericka von Stade to
perform during this portion of the program. Ms. von
Stade is one of America's top mezzo soprano voices and
has performed on opera stages throughout the world.
Van
on
BUSH LIBRARY PHOTOCOPY - PRESERVATION
-2-
Ray Charles (15 minute performance)
NOT HOT Too 0N THIS
Mr. Charles, legendary jazz singer and pianist, is
internationally regarded as one of America's greatest
entertainers of all time.
PROGRAM OPTION 2
Master of Ceremonies: Charlton Heston (or James Earl Jones)
Program: Michael Davis (5 minute performance)
Ricky Skaggs - confirmed (12 minute performance)
Dick Hyman (15 minute performance)
Mr. Hyman has performed at The White House for PBS's
"In Performance" series and is regarded as one of
America's pre-eminent jazz pianists.
Kathleen Battle (15 minute performance)
Ms. Battle is regarded as one of America's greatest
young soprano voices and has performed at the
Metropolitan Opera as well as most of the great opera
houses of the world.
Note: If Ms. Battle is not available, or if you have a
preference, we would suggest Marilyn McCoo to perform
during this portion of the program. Ms. McCoo,
line
formerly of "The Fifth Dimension", continues to be one
of the country's leading pop vocalists.
Since we have not yet approached most of the entertainers, we can
not: verify their availability. However, if you will indicate
your preference below, we will endeavor to put together the most
appealing program possible.
Preferences
Overall:
Option 1
Option 2
MC:
Jones
Heston :
Individual Performers:
Horn
or
von Stade
Battle
or
McCoo
How about Heston
12 - Shaggs
n/c Con - 15
5
Davis
BUSH LIBRARY PHOTOCOPY - PRESERVATION
-
THE WHITE HOUSE
WASHINGTON
Date: May 15, 1990
FOR:
FRED MALEK
FROM: ED ROGERS
Action
Your Comment
Let's Talk
XXX FYI
THE CHAIRMAN OF THE
COUNCIL OF ECONOMIC ADVISERS
WASHINGTON
ER
May 14, 1990
MEMORANDUM FOR GOVERNOR SUNUNU, CHIEF OF STAFF
GENERAL SCOWCROFT, NATIONAL SECURITY COUNCIL
FROM:
MICHAEL BOSKIN ingo
CEA CHAIRMAN
In a meeting (mostly on other matters) MITI Minister Muto
mentioned to me that Prime Minister Kaifu and the Japanese
Delegation will be raising issues of global warming at the
Economic Sumit. MITI is engaged in a Research Planning Project
2100, focusing on "clean technology." I have no independent
confirmation of this, so it may just be one item on the
Minister's wish list.
Sunday, April 29, 1990
Contra
Costa
The
Times-5B
Northwest Airlines chief
thrives on doing it all
Planning economic summit is volunteer job
By Christopher Connell
richer.
Associated Press
" think you can be
Last spring he put together a
WASHINGTON Fred Malek is
president of Northwest Airlines and
effective with less
$300 million buyout of the Coldwell
Banker commercial real estate
co-chairman of the Coldwell Banker
commercial real estate firm and, oh,
than 100 percent of
group from Sears, Roebuck & Co.
Then he joined deal-makers (and
yes, on the side he's directing prep-
your time (on one
fellow Marriott alumni) Gary Wil-
arations for the 1990 economic sum-
enterprise) -
son and Al Checchi last June in a
mit of the world's seven richest in-
successful $3.65 billion bid for
dustrialized nations.
His secret?
particularly if you're
Northwest Airlines; a few months
"I think you can be effective with
willing to work an
later he found himself in the presi-
dent's chair.
less than 100 percent of your time
80-hour week.
More recently he teamed with
(on one enterprise) particularly if
Washington's Carlyle Group to buy
Associated Press
you're willing to work an 80-hour
Fred Malek
Marriott's airline catering business
week," said Malek.
PRESIDENT BUSH meets with Fred Malek, center, president of Northwestern Airlines and Gary
for a reported $575 million.
One recent week, shuttling from
MacDougal, right, at Malek's home in McLean, Va. MacDougal worked on the Bush campaign.
his government office in a town-
As Bob Woodward and Carl
Entrepreneurial spirit
knows how to manage and create
August at the Maleks' home mark-
He is still boning up on past
house near the White House to busi-
Bernstein had reported in their 1976
Northwest's new owners moved
values after the acquisition."
book, "The Final Days," Nixon de-
ing the first anniversary of the GOP
summits, and shies at making pre-
ness meetings in New York and
quickly to combat a legacy of labor
The lean, gray-haired Malek was
convention.
dictions about this one.
Minneapolis, to a get-acquainted
manded that his aides find out how
troubles and poor service and to
a Green Beret officer in South Viet-
session with summit "sherpas" in
many top Bureau of Labor Statistics
capitalize on its position as the big-
nam in 1960-61. He got an MBA
San Francisco and finally home
officials were Democrats and Jews.
gest carrier across the North Pacif-
from Harvard in 1964 and came to
again to McLean, Va., stretched be-
Malek, a special assistant to Nix-
ic.
Washington in 1969 as deputy un-
yond even the 80-hour routine.
on, checked voter registration rolls
They have also reduced their
dersecretary of the Department of
For Malek, a 53-year-old West
and reported back on how many
debt from $3 billion to less than $2
Health, Education and Welfare. In
Point graduate, this whirlwind of
were Democrats, but balked at ful-
billion inside of a year, in part by
1971, he became a special assistant
business and public service adds up
filling the rest of Nixon's query.
airplane sales and lease-backs and
to Nixon and later deputy director
to "a wonderful time."
"I refused four times. The fifth
in part by mortgaging major land
of the Office of Management and
"I love what I'm doing. I've never
time he came back and gave me a
holdings in Japan. Malek and his
Budget.
had more fun in my life," said the
direct order through (chief of staff
partners were able to buy the airline
Malek met then-congressman
onetime Nixon White House aide.
H.R.) Haldeman, so I gave him a
without junk bonds.
Bush in 1970 and became good
Malek is now devoting about two
number. I regret my compliance. It
"I always wanted to be entrepre-
friends while Bush was Republican
days a week to preparations for the
was a mistake," Malek said in an in-
neurial to have an opportunity to
Party chairman in 1973-74 during
July 7-11 summit in President
terview last fall shortly before Bush
buy into businesses and make them
the Watergate crisis.
Bush's hometown of Houston.
named him summit director.
better," said Malek, who views him-
Malek and his wife of 29 years,
Come June, he anticipates working
The appointment was made with
self less as a financier than "a build-
Marlene, remain close to the
full-time on summit duties. He is
the blessing of major Jewish organi-
er of businesses, somebody who
zations. "He did make one mistake
Bushes, who attended a party last
performing the work without pay.
Two summers ago Malek under-
and he's apologized for it.
He's
took another task at the behest of
put it behind him," said Abraham
George Bush, stepping down as
Foxman of the Anti-Defamation
president of Marriott Hotels to di-
League of B'nai B'rith.
rect the Republican National Con-
Before the campaign resignation,
vention for the Bush campaign.
Malek was considered a possible
Nixon years 'mistake'
chief of staff for the Bush White
House.
But shortly after the New Or-
Instead, he stuck to the private
leans convention, Malek resigned as
sector, leaving the booming Marri-
deputy chairman of the Republican
ott empire to strike out on his own
National Committee after the Wash-
as a merchant banker - and soon
ington Post revisited a controversial
closing several mega-deals that
episode from the Nixon years.
have made a wealthy man even
1990 ECONOMIC SUMMIT OF INDUSTRIALIZED NATIONS
734 JACKSON PLACE * WASHINGTON, DC 20503
202-408-0290 (FAX) 202-408-0298
April 18, 1990
MEMORANDUM FOR ANDY CARD
FROM:
CHUCK HAGEL ask
RE:
ECONOMIC SUMMIT SCHEDULE
For your information, attached please find a brief outline and
statement regarding the schedule for the 1990 Economic Summit of
Industrialized Nations, to be held in Houston, Texas, July 9-11.
Based on Fred Malek's meeting with President Bush on Monday, and
prior discussions with you and your colleagues, Malek will be
holding a press conference on Thursday, April 19, 1990, 12:00 CST
in Houston, Texas. Malek will read the attached statement at
that time, as well as release the tentative schedule and hold a
question and answer session.
In addition, Marlin Fitzwater will issue a statement from the
White House on Thursday from Key Largo, Florida.
1990 ECONOMIC SUMMIT OF INDUSTRIALIZED NATIONS
734 JACKSON PLACE * WASHINGTON, DC 20503
202-408-0290 (FAX) 202-408-0298
FOR YOUR INFORMATION - NOT FOR RELEASE
INTRODUCTORY STATEMENT BY FRED MALEK
APRIL 19 PRESS CONFERENCE
GEORGE R. BROWN CONVENTION CENTER
12:00 NOON (CDT)
I'M STANDING IN THE SAME ROOM WHERE -- LESS THAN THREE MONTHS
FROM NOW -- OUR PRESIDENT, GEORGE BUSH, WILL DELIVER THE FINAL
COMMUNIQUE OF THE 1990 ECONOMIC SUMMIT OF INDUSTRIALIZED NATIONS.
THE PRESIDENT CHOSE HOUSTON AS THE LOCATION FOR THIS HISTORIC EVENT
BECAUSE HE KNEW THAT THIS CITY WOULD NOT ONLY PROVIDE AN EXCELLENT
SETTING FOR THE MEETING, BUT THAT HOUSTON WOULD SHOW THE WORLD A
PART OF THE UNITED STATES THAT MEANS so MUCH TO HIM.
I'D LIKE TO TAKE A MOMENT TO THANK EVERYONE IN HOUSTON WHO HAS
CONTRIBUTED TO THE FINALIZATION OF THIS SCHEDULE WE ARE ANNOUNCING
TODAY. THE CO-CHAIRMEN OF THE HOUSTON HOST COMMITTEE, KEN LAY AND
GEORGE STRAKE, HAVE GATHERED TOGETHER THE FINEST TALENT IN HOUSTON
AND HAVE PRESENTED US WITH so MUCH CREATIVITY, ENTHUSIASM AND
PROFESSIONAL ADVICE THAT I'M SURE IT WOULD BE DIFFICULT TO MATCH IN
ANY OTHER CITY. WE HAVE BEEN OVERWHELMED WITH GOOD IDEAS.
THE SCHEDULE THAT MOST OF YOU NOW HAVE A COPY OF CONTAINS THE
OUTLINE OF THE JULY 9-11 ECONOMIC SUMMIT.
page 2 Malek statement
WE BELIEVE THAT THIS SCHEDULE, WITH THE SUMMIT MEETINGS HELD
AT RICE UNIVERSITY, WILL BEST ALLOW THE PRESIDENT AND HIS
COUNTERPARTS FROM THE G7 NATIONS A CHANCE TO DISCUSS OPENLY THEIR
VARYING VIEWS ON WORLD AFFAIRS IN AN ATMOSPHERE THAT IS CONDUCIVE
TO THOUGHTFUL DISCUSSION. THE SCHEDULE ALLOWS THE LEADERS TIME TO
MEET SEPARATELY AND HOLD BILATERAL DISCUSSIONS. WE HOPE THAT IT
WILL ALSO ALLOW THEM AN OPPORTUNITY TO RELAX AND ENJOY HOUSTON'S
CULTURAL SIDE WITH A WORKING DINNER HELD AT THE BAYOU BEND
COLLECTION -- ONE OF THE FINEST COLLECTIONS OF DECORATIVE ART IN
THE WORLD, AND AN OFFICIAL SUMMIT DINNER AND EVENING OF
ENTERTAINMENT ON TUESDAY AT THE HOUSTON FINE ARTS MUSEUM, WHICH
BOASTS A FINE COLLECTION OF BOTH AMERICAN AND EUROPEAN ART.
THE GEORGE R. BROWN CONVENTION CENTER, THIS STATE OF THE ART
FACILITY THAT THE CITY OF HOUSTON HAS MADE AVAILABLE TO US,
PROVIDES EXCELLENT WORK SPACE FOR THE INTERNATIONAL AND DOMESTIC
MEDIA THAT WILL BE COVERING THE SUMMIT. DOWN THE HALL IN
EXHIBITION HALL "D", THE HOUSTON HOST COMMITTEE, WITH THE HELP OF
MANY CONTRIBUTORS FROM, HOUSTON, THE STATE OF TEXAS AND THE REST OF
THE UNITED STATES, WILL PROVIDE TWENTY-FOUR HOUR MEAL SERVICE FOR
THE MEMBERS OF THE PRESS.
BEFORE I TAKE YOUR QUESTIONS, I'D LIKE TO POINT OUT TWO
EVENTS THAT WILL TAKE PLACE PRIOR TO AND AFTER THE "OFFICIAL
SUMMIT." ON SUNDAY, JULY 8TH -- IN COORDINATION WITH OUR ECONOMIC
SUMMIT ORGANIZATION -- HARRIS COUNTY, THE CITY OF HOUSTON AND THE
HOUSTON HOST COMMITTEE WILL HOST A WESTERN EVENING THAT WILL
page 3 Malek statement
INCLUDE A RODEO, BARBEQUE, AND COUNTRY MUSIC ENTERTAINMENT FOR
PRESIDENT AND MRS. BUSH AND THEIR GUESTS FROM AROUND THE WORLD.
ALSO INVITED WILL BE MEMBERS OF THE DOMESTIC AND FOREIGN PRESS
CORPS, THE STAFFS AND LEADERS OF THE G7 COUNTRIES THAT ARE IN TOWN
ON SUNDAY, AND STATE AND LOCAL OFFICIALS. THE WESTERN NIGHT WILL
BEGIN ON SUNDAY AT 5:00 P.M.
ON WEDNESDAY EVENING, JULY 11, THE PRESIDENT AND MRS. BUSH
WILL SALUTE THEIR HOME TOWN WITH AN EVENING OF ENTERTAINMENT AT THE
WORTHAM THEATER. THE BUSHES WILL HONOR THE MANY HOUSTONIANS WHO
HAVE HELPED TO PUT ON THE 1990 ECONOMIC SUMMIT OF INDUSTRIALIZED
NATIONS. THE EVENT AT THE WORTHAM WILL BEGIN AT 8:00 P.M.
BY NOW YOU ALL HAVE NOTICED THE HANDSOME LOGO HANGING BEHIND
ME. THIS IS THE OFFICIAL LOGO OF THE 1990 ECONOMIC SUMMIT OF
INDUSTRIALIZED NATIONS, AND IT WILL APPEAR ON ALL OFFICIAL SUMMIT
DOCUMENTS AND PUBLICATIONS. THE ARTWORK WAS DONATED TO THE SUMMIT
BY THE HOUSTON ADVERTISING AND ENTERTAINING FIRM WARD AND AMES.
LINDA LIMB IS THE WOMAN RESPONSIBLE FOR THIS PARTICULAR DESIGN --
SHE DID AN OUTSTANDING JOB. THE EIGHT STARS ON THE LEFT REPRESENT
EACH OF THE SEVEN INDUSTRIALIZED NATIONS, AND THE EUROPEAN
COMMUNITY.
I'D BE HAPPY TO ANSWER ANY QUESTIONS NOW THAT YOU MIGHT HAVE.
1990 ECONOMIC SUMMIT OF INDUSTRIALIZED NATIONS
734 JACKSON PLACE * WASHINGTON, DC 20503
202-408-0290 (FAX) 202-408-0298
EMBARGOED UNTIL 1:30PM (EST), APRIL 19, 1990
FOR IMMEDIATE RELEASE
CONTACT: ROXANNE CASSCELLS
APRIL 19, 1990
202/408-1644
TENTATIVE ECONOMIC SUMMIT SCHEDULE ANNOUNCED
(HOUSTON, TEXAS) -- Fred Malek, Director of the 1990 Economic
Summit of Industrialized Nations, announced today the official
schedule of events for the Summit to be held in Houston, Texas on
July 9-11, 1990. The tentative schedule follows:
Monday, July 9, 1990
10:00 AM to 2:00 PM
Arrival Ceremonies
Academic Quadrangle
Rice University
President Bush Greets Heads of Delegations:
Commission of European Communities
Italy
Japan
Federal Republic of Germany
Canada
United Kingdom
France
3:00 PM
Restricted Session
Heads of Delegations
Founders Room, Lovett Hall
Rice University
7:00 PM
Working Dinner
Heads of Delegations
Bayou Bend Collection
Tuesday, July 10, 1990
9:00 AM
Main Plenary Session
Heads of Delegations, Foreign and Finance Ministers
Herring Hall
Rice University
1:00 PM
Working Lunch
Heads of Delegations
Cohen House
Rice University
page 2 summit schedule
2:30 PM
Main Plenary Session
Heads of Delegations, Foreign and Finance Ministers
Herring Hall
Rice University
3:30 PM
Open for staff consultation and bilaterals
7:30 PM
Official Dinner
Heads of Delegations, Foreign Ministers, Finance
Ministers and Spouses
Houston Fine Arts Museum
Wednesday, July 11, 1990
9:00 AM
Main Plenary Session
Heads of Delegations, Foreign and Finance Ministers
Herring Hall
Rice University
12:00 Noon
President Bush Reads Final Communique
Assembly Hall B
George R. Brown Convention Center
###
THE WHITE HOUSE
WASHINGTON
Date: May 7, 1990
FOR:
SIG ROGICH
FROM: ED ROGERS
Action
Your Comment
Let's Talk
XX
X FYI
Just wanted to be sure you saw this.
1990 ECONOMIC SUMMIT OF INDUSTRIALIZED NATIONS
734 JACKSON PLACE * WASHINGTON, DC 20503
202-408-0290 (FAX) 202-408-0298
are
May 4, 1990
MEMORANDUM FOR JAMES A. BAKER, Secretary of State
NICHOLAS F. BRADY, Secretary of the Treasury
JOHN H. SUNUNU, Chief of Staff
BRENT SCOWCROFT, Assistant to the President for
National Security Affairs
FROM:
FREDERIC V. MALEK 7001
The following is a brief update on the 1990 Economic Summit
of Industrialized Nations:
Summit Schedules
As you know, the official Summit schedule has been approved
by the President and announced. In addition, the spouses
schedule has been approved and announced by Mrs. Bush. Both have
been well received in Texas by the press and the Houston Host
Committee. In addition, the announcement and coverage has set
the proper tone on the serious business nature of the Summit.
Houston Host Committee/Funding
The Host Committee has been extremely helpful on all
matters, particularly in raising funds, and soliciting corporate
goods and services to supplement the official Summit budget.
Specifically, the Host Committee is underwriting all the
unofficial Summit events, including the Sunday evening
barbeque/western entertainment, the Wednesday evening salute to
Houston and the thank you from the President and Mrs. Bush, as
well as several other pre-Summit press oriented events.
To date over $2 million has been committed, and the Host
Committee does not foresee any problems in the funding of these
events.
We are making every effort to get donations of inkind
services, products and cash to help insure that we keep Summit
costs and expenses at a minimum.
-2-
Brown Convention Center Food Pavilion
In conjunction with the Houston Host Committee, we are
finalizing plans for a 24 hour food pavilion at the Brown Center
to accommodate the international press. The Host Committee is
getting donated all the food products for the pavilion from local
businesses as well as the services of the best local chefs. We
should have a first rate food pavilion, including a separate
Japanese restaurant.
Summit Houston Headquarters
The official Summit headquarters was opened at Kirby Mansion
in downtown Houston last month. Kirby Mansion is an historic
Houston home that is currently being donated to the Summit. The
building has been renovated by volunteers for the use of the
Summit staff and the Houston Host Committee. Additional office
space is being used across the street from Kirby in a GSA
building.
Foreign Delegations Site Surveys
The second delegation site surveys will be held in Houston
in late May and early June. Each delegation will be visiting all
sites and will have the opportunity to explore them in detail.
Our staff Directors will be working directly with their
counterparts from each delegation to assess their plans and
requirements.
Accommodations
All foreign delegation and press housing assignments have
been finalized. As you recall, all foreign delegation hotels
will be in the Galleria area and most of the press will reside
downtown (nearer the press center at the Brown Convention
Center).
Official Summit Logo
The official Summit logo was unveiled at a news conference
in Houston during the announcement of the schedule. It is an
artistic rendition of the American flag, with eight white stars
on the far left, symbolizing the seven participating
industrialized nations and the European Community. To the far
right are thirteen red and white stripes. The logo is
rectangular in shape, and is placed on a dark blue field, with a
gold border surrounding the entire design. (See attached).
-3-
Shuttle System
Houston METRO has donated its services and will provide a
comprehensive shuttle service for all official Summit delegation
members and press at no cost to the government. The shuttle
service will operate 24 hours a day and cover routes between the
downtown press center at Brown, the Galleria hotel area and Rice
University.
Summit Staff
The Summit organization is now fully staffed. The staff has
begun moving to Houston on a permanent basis for the duration of
the Summit. I, along with most of the Summit staff, will be in
place in Houston by June 1. We have assembled a first rate
staff. Most of the Summit staff has been recruited from the Bush
Administration and will be either returning to their former
positions or looking for new positions. We have been fortunate
to get a number of Bush administration detailees from various
government agencies. This has helped keep personnel costs down.
Next Steps
We are now developing detailed schedules for each Summit
event and all aspects of operations, including transportation,
communications, and security needs. The focus from here on will
be on the fine tuning and execution of these plans.
We appreciate all the assistance and counsel that we have
received from you and your staffs. We will continue to work with
your offices for input as details and plans continue to progress.
SVXIL NOLSNOH
NATIONS
INDUSTRIALIZED
d O
ECONOMIC SUMMIT
06 6 I
1990 ECONOMIC SUMMIT OF INDUSTRIALIZED NATIONS
ER
734 JACKSON PLACE * WASHINGTON, DC 20503
202-408-0290 (FAX) 202-408-0298
fgi
April 27, 1990
MEMORANDUM FOR THE CHIEF OF STAFF
FROM:
FRED MALEK Jun
SUBJECT:
Summit Conference Tables
This memo responds to the questions you raised concerning the
Summit tables and their financing.
Background
In order to accommodate the Restricted and Plenary Sessions of the
Economic Summit, we as the host country will have to provide four
tables. The largest table to be used during the Main Plenary
Sessions of the Summit must accommodate 24 participants. The table
in the Restricted Sessions of the Heads of Delegations must
accommodate the eight principals. Concurrent to the Restricted
Sessions of the Heads of Delegations will be Restricted Sessions
for the Foreign and Finance Ministers. The table for the meeting
of the Finance Ministers must accommodate sixteen, and the number
to be seated at Secretary Baker's table is yet to be determined.
Because of the conference rooms' sizes and configurations, the
normal, existing conference tables cannot accommodate the
requirements. Further, tables must also be specifically built in
order to accommodate the intricate translation equipment needed.
Plan
Approximately two months ago a Houston based architectural design
company approached the Houston Summit Host Committee regarding the
donation of a conference table for the Summit. After being advised
of this offer by the Host Committee, representatives of my Summit
staff met with this company, Planning Design Research Corporation
(P.D.R.), and inquired about their willingness to build all four
conference tables that will be used during the Summit.
The agreement crafted with the Houston company revolved around two
major benefits: the larger table used during the Main Plenary
Sessions would be donated to the Summit, and would become the
property of the Federal Government at the conclusion of the
-2-
Summit. The three other tables, while built to our specifications,
would be considered a loan to the Summit. P.D.R.'s intention was
to approach Houston-based companies and ask them to sponsor the
construction of the three smaller tables. Should no suitable
sponsor be found, P.D.R. would provide the tables at their cost.
Such an arrangement was approved by the State Department Legal
Advisor. The Houston Host Committee was in full agreement with
these proposed plans.
P.D.R. estimates the cost of building the four Summit tables would
be near $167,000.00. All of this is donated money, and at no
expense to the Federal Government. The 1983 Williamsburg Summit
had one table constructed at a cost of $75,000.00, paid for by the
U.S. Government. Other tables were adapted from William & Mary
College at additional cost to the Government. The Canadians spent
comparable amounts for two tables for the 1988 Toronto Summit.
As far as I know, neither our staff nor P.D.R. has approached any
individual or company at this time for donations
certainly no
past Bush campaign contributors.
Alternatives
We feel our approach is sound and totally defensible. It provides
an excellent product, it saves considerable U.S. Government funds,
and it provides another meaningful avenue of involvement for
Houstonians. There are three alternatives we can take:
1. Work with P.D.R. to reduce the specifications and costs of the
table they are preparing.
2. Terminate the relationship with P.D.R. and go to our back-up
plan. In order to protect against any unexpected delays or
failure of P.D.R., we have a back-up plan to adapt specific
existing tables owned by the U.S. Government and private
concerns (e.g. the 1983 Williamsburg table is at the
Department of Agriculture). The adaption and shipping
expenses, of course, would be borne by the Government and
would be considerable. The end product would not be as good
but would be acceptable.
3. Have P.D.R. donate only the main plenary table and adopt other
existing tables for the remaining three. This would cost less
money overall but would cost the U.S. Government more, due to
the adaptation/reconfiguration costs.
-3-
I hope this clarifies our actions to date with regard to the Summit
conference tables. All of our actions have been directed towards
saving the government a substantial amount of money, consistent
with having the best possible product.
Again, I recommend we stay with our original plan for reasons
already stated. Please let me know if you feel otherwise.
SENT BY:Xerox Telecopier 7020 ; 3- 6-90 ; 11:59 ;
19E
4567929;# 2
February 27, 1990
FOR IMMEDIATE RELEASE
Contact: Roxanne Bell Casscells
(202) 408-1644
THE WHITE HOUSE
of the 1990 Economic Summit of
WASHINGTON
today the appointment of the
ic Summit. The Executive
nior advisors to the Summit staff
, media coordination, and other
Date: March 8
f Wexler, Reynolds, Fuller,
Chairman of the Committee. The
TO: Ed Rogers
t Alvarez, President of Conwall;
Government Affairs of Textron;
FROM: AMY L. SCHWARTZ
iton G. Keel, Deputy Chairman for
Associate Counsel
National Bank; James H. Lake,
to the President
er & Montgomery; Homer Luther,
t; Joshua I. Smith, Chairman and
Action
M. Teeter, President of Coldwater
h, President and Co-Chairman of
: Walker, Managing Director of
Comments
FYI
in assembled in January and will
the time of the Economic Summit in
re Committee brings a diverse
lence in major events like the
if and the Houston Host Committee
Committee's counsel. We are
caliber to ensure the success of
the Summit."
****
/
THE WHITE HOUSE
WASHINGTON
15ᵗ, muting
/. Scouft-
2. Bahu - OK- mud to confirm
3. Brock- -
Ot 30TH
4. malek- - OK- mud to
G. Samy
2:45-45mins 2:45 - 45 Mins
6. Pres.
Ecusument
OCT-17-1989 16:09 FROM
TO
912024562397
P.02
CONFIDENTIAL
October 17, 1989
To: Ed Rogers
From: Fred Malek
Subject: Preliminary Plan - Economic Summit
Subsequent to our meeting Friday, I have given further thought to
tions are:
the scenario and initial actions regarding the Summit. My sugges-
1.
Concurrent with my appointment, the President should
announce his desire or intention to hold the Summit in
Texas. However, he should not designate a specific city
(even though he could privately indicate his choice). This
would provide the leverage needed in negotiating the optimum
arrangements with the city and would preclude any embarrass-
ment in the unlikely event that there are insurmountable
obstacles to his preferred city.
2.
The day after my appointment I would designate a Selection
3
people
Committee to evaluate the major cities in Texas and formu-
late a recommendation to the President. This would enable
me to be recused from the selection. The Selection
Committee would be chaired by Craig Fuller.
3.
At the same time I would designate an Executive Director and
also an Executive Assistant. They would immediately set up
office. This latter point is important as we want to expedi-
tiously respond to the calls, letters, and inquiries that
will be coming in. I have talked to Amy Schwartz, and she
is discussing with the Personnel Office how we can quickly
clear these people.
4.
A working lunch or other meeting with the President and
Secretary Baker immediately preceding my appointment would
oh
be highly useful. The purpose would be to focus on some of
the key issues that we will need for guidance, such as:
- The theme envisioned for the Summit.
- The basic message we want to convey to the American and
World publics.
- The impression we want to make on our guests--what do we
want them to take away from the Summit.
- The type of setting desired: formal, academic, relaxed,
or some combination; opportunities for informal discus-
sions VS. plenary sessions only.
OCT-17-1989 16:09 FROM
TO
912024562397 P.03
- 2 -
- The type of activities envisioned such as: Space demon-
stration; Western event (rodeo and/or barbecue); Special
entertainment (perhaps including country/western).
- Comments on what was liked best and least about the last
Summit.
- Dates that are preferred given the Soviet Summit as well
as factors such as climate.
A suggested rough timetable for the above as well as the key
follow on steps might look like this:
1. Meeting with the President - November 1 or 3.
2. Announce my appointment - November 1, 3, 6 or 7.
3. Designate Selection Committee Chairman, Executive Director,
and Executive Assistant - one day after 2 above.
4. Designate full Executive Committee and Selection Committee
one week after 2 above.
5. Determine available and preferred dates from each foreign
government and recommend dates to the President by
November 30.
6. Selection Committee recommend city to the President and
announcement of selection - December 15.
Let's discuss at your convenience. In the meantime I will be
working on clearances for the initial appointments.
02/11/1991 11:23 The Carlyle Group
202 347 1818
P.02
Frederic V. Malek
Vice Chairman
Northwest Airlines. Inc.
612 726-2091
Department A1200
612 726-0622 Fax
Minneapolis/St. Paul
International Airport
St. Paul MN 55111
February 8, 1991
The President
The White House
Washington, D.C. 20500
Dear Mr. President:
Since August a, you personally have set the agenda on
the home front that the country had to carry on its business
as usual. Your determination to deliver the State of the
Union message, and your leadership in insisting that the
Super Bowl proceed as scheduled all were welcome and
important gestures to the country that we will prevail at
home as well as in the Persian Gulf.
Your leadership in this area is in recognition that the
terrorist measures success not so much by the execution of
the act itself, but rather by the extent to which the
behavior patterns of ordinary people are altered to the
detriment of the national good. Thus far, through vigilance
and a lot of hard work, we have been successful in avoiding
significant acts of terrorism. We must fight the
attitudinal war just as forcefully as we are fighting the
terrorists themselves.
Unfortunately, I am terribly concerned that the
American business community has collectively stuck its head
in the sand, and for three weeks has been cowering in fear
of what Saddam might do. Investment decisions are on hold;
purchases of new cars and homes are down (Teeter told me
that Ford did not receive a single car order from its
dealers the last half of December) ; attendance at theme
parks and resorts is way off; and air travel has plummeted.
It would be a shame to allow Saddam to have an economic
victory and to achieve economically what he can never
achieve on the battlefield.
Quite bluntly, business has headed for the bunkers.
Shortly after the onset of Desert Storm, many businesses
banned all international travel, even though in cooperation
with the Federal Aviation Administration, the airlines have
gone to extraordinary lengths to raise the security of air
travel to the highest levels in history. This behavior has
02/11/1991 11:23 The Carlyle Group
202 347 1818
P.03
The President
February 8, 1991
Page Two
had devastating effects on the airline industry, related
travel industries such as hotels, rental car companies,
caterers and theme parks. A recent Commerce Department
study reports that tourism is down forty percent since the
onset of Desert Storm. States like Hawaii that are
particularly dependent on tourism have seen their economies
decimated in just three short weeks.
This hysterical and irrational response to the crisis
in the Gulf is perhaps the most palpable sign of a war-
induced malaise in the business community; it seems to
reflect the notion that business activity should be frozen
in place while we all watch CNN, and try to figure out how
long it will be before victory is achieved.
This defeatist syndrome must be addressed forcefully
and aggressively by the Administration because unless it is
broken, I fear that the economic downturn will be greatly
exacerbated, and make economic recovery longer and more
difficult. I also fear that critical industries, like the
airline industry which has been SO instrumental in the
successful prosecution of your Persian Gulf policies -- will
suffer irreparable damage unless people start traveling
again, and soon.
Thus, I believe that the Administration should pursue a
coordinated effort to prod the business community to get on
with the business of America. Here are some of the actions
that come to mind:
1. Take every opportunity to make this point yourself
-- ensure it is addressed at your next news conference and
upcoming speeches.
2. Consider convening a White House Business
Leadership Conference to deliver this message personally.
3. Bob Mosbacher and the Commerce Department can play
a crucial role. Bob could personally write to the Chief
Executive Officers of the Fortune 1000, and the Business
Roundtable and the Chamber of Commerce to encourage American
businesses to push ahead.
4. Sam Skinner could pursue an equally aggressive
campaign to reassure American businesses (and consumers)
that they should travel with confidence and not fall victim
to exaggerated threats of terrorism.
02/11/1991 11:24 The Carlyle Group
202 347 1818
P.04
The President
February 8, 1991
Page Three
5. Nick Brady and other cabinet members should adopt
this theme in their speeches and appearances.
6. Finally, this effort should be multi-national.
State can be helpful in this area as well. The Japanese,
for example, have reduced their foreign travel by extreme
amounts, out of all proportion to any realistic threat.
Clearly, the Japanese, and our other major trading partners
should have just as great an incentive in restoring
confidence as we have, and I would hope these concerns and
themes could be shared with our partners, and they be
encouraged to also speak out in their countries.
Mr. President I earnestly believe that a sustained
effort of the type described above is critical to the
economic health of the nation. I am willing to assist in
this effort in any way you might deem appropriate. Thank
you for your indulging me in this rather lengthy letter.
Sincerely,
Fred
Frederic V. Malek
P.S. Attached is all well thought through letter from your
friend, Bill Marriott, on the same subject.
02/11/1991 11:25 The Carlyle Group
202 347 1818
P.05
Ell
Marrioft
Marriott Corporation
Marriott Drive
int ernational Headquarters
Washington, D. C. 20058
J. Willard Marriott. Jr.
Chairman of the Board
February 8, 1991
and President
The President
The White House
Washington, D.C. 20500
Dear Mr. President:
Although he is losing the war in Iraq,
Saddam Hussein is beginning to win the economic
war in America as American consumers are climbing
into their bunkers and pulling the deepening
recession in on top of them.
They are too busy feeding their fears by watching
CNN News to make trips to Disneyland or even to the
automobile showroom to buy a new car.
I serve on the General Motors Board where we just
cut our dividend and are predicting up to a 20% drop
in auto production through 1991. Hotel industry
occupancy in Europe is off some 40%. In the United
States, it is off 5-104. Meetings are being
cancelled and customer calls are being made by
telephone. The airports are virtually empty.
International air travel is down 50-75%. Domestic
air travel is off 5-10%.
The media are overdoing it with continuous coverage
of empty airports, airplanes, and hotel lobbies.
Travel and the automobile industry are our two
largest employers. Already over 100,000 auto
workers have been laid off. By the end of February
over 150, 000 workers will have been laid off by the
hotel and airline industry. If present trends
continue, many of our largest airlines, hotels, and
automobile manufacturing companies will be in
serious financial difficulty.
Your reply at the Economic Club of New York to the
question about the public's reluctance to travel was
superb. Your taking the President's Day weekend in
02/11/1991 11:25 The Carlyle Group
202 347 1818
P.06
The President
February 8, 1991
Page Two
Kennebunkport is a very strong signal. Your comment
when regarding the Super Bowl was also very encouraging
you said, "Life must go on."
tell I hope you will continue to use every opportunity to
the American people to get out of their
collective bunkers, to take vacations, and make
new car -- even with B. war going on.
sales calls, to attend meetings and yes, to buy a
Thank you for your great leadership and your fine
example of getting away from the White House and
encouraging all Americans that life must go on.
With warmest personal regards,
Bue Mainou
J.W. Marriott, Jr.
CC: The Honorable John H. Sununu
The Honorable Robert A. Mosbacher
The Honorable Nicholas F. Brady
The Honorable Samuel K. Skinner
The Honorable Drew Lewis
The Honorable Roger B. Porter
TOTAL P.06
12/03/1990 19:02 **** PANAFAX UF-600 ****
14712095 P.02
THE CARLYLE GROUP
A Private Merchant Bank
1001 Pennsylvania Avenue, N.W.
Washington, D.C. 20004-2505
(202) 347-2626
November 26, 1990
MEMORANDUM FOR THE PRESIDENT
FROM:
FRED MALEK FradMalek
Congratulations on a magnificent trip. The appearances in Saudi Arabia
emotional high, and there seemed to be a great deal of substantive progress with were our allies an
and the Congressional leaders. These results should firm support for your policies here.
your handling of the Middle East but are less sure of your understanding and actions
luncheon two weeks ago. As stated then, I believe the American people have confidence our in
I'd like to take advantage of your invitation to offer follow-up thoughts to
related to the country's economic problems. Yet, assuming the Iraqi problem is resolved in
measure by which the voters will judge you in 1992.
1991, and we are otherwise at peace, our economic health will be, as usual, the principle
your financial subsequent meetings with your economic team and then with a series of business see and
Business and political leaders who are your friends were genuinely pleased to
its leaders. These sessions undoubtedly helped to accurately define the problem and
dimensions. Most likely these sessions have helped you and your team to conclude that:
-
The country is indeed in a recession.
-
while real estate is a true disaster, electronics/technological industries are
It is selective, e.g., although the Northeast is a mess, the Northwest is healthy;
doing fine.
-
The recession has the clear potential of becoming deeper, larger, and more
destructive than the 1981-2 recession.
-
We do have an unprecedented credit crunch in the country, and bank
regulators are unwittingly contributing to the problem. Their actions could
mitigate against any rapid recovery.
drive a shallow recession into a major downturn, and will, at the least,
growing problems.
There is a sense of government apathy, unawareness, or insensitivity to the
the problem, both perceptually and substantively:
Now, let me be so bold as to suggest a few measures you can consider to deal with
1.
Indicate is your awareness and concern to the American people, Unfortunately, there
greatest asset -- decline dramatically in value, jobs are threatened by recession and
They see their economic future threatened as never before as homes - their single
a serious fear, bordering on paranoia, developing among the American public.
12/03/1990
19:03
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November 26, 1990
Page Two
bankruptcies, financial services are in disarray, and former pillars (banks and
insurance companies) appear vulnerable. They need you as a "father figure" to take
improve the economy, and offer hope for the future. You should indicate that we
them by the hand, acknowledge times are tough today, state that you are acting to
have faced recessions before and will come through this one because:
-
Your successful budget deficit efforts have already led to reduced interest
years. rates, and have put us on a course designed to balance the budget over five
-
Exports are increasing, and the balance of payments improving.
-
Inflation is stabilizing and appears under control, and declining.
-
You and your team are on top of this and taking further actions.
2.
Continue to use your influence to press interest rates down, They are moving in the
right direction, but need to fall further. Greenspan seems to agree, but my fear is
that the Fed is not moving fast enough. While there are risks involved, and subtlety
help to demonstrate your leadership and your success in lowering interest rates.
is required, a visible meeting with Greenspan, prior to a likely move by the Fed, may
3.
Deal with the credit crunch. This problem is real. it is pervasive, and if unchecked it
will cripple the economy, Regulators are holding banks to impossible standards and
for worthwhile projects. Based on their fear of regulatory retaliation, banks are
have established an atmosphere of fear and uncertainty that precludes lending even
simply not lending to anyone, even the Fortune 500 companies are having trouble
with credit; there is no longer such a thing as a real estate loan -- for even the
strongest developer with a fully leased building. Listen to your many friends from
the business world on this one -- yes, there have been excesses in the past, but the
present atmosphere goes far beyond reason. The regulators are determined to
avoid blame, and they are therefore forcing loan and write-off standards on banks
which are beyond any heretofore rational standard for the providing of credit. This
is a truly difficult issue to deal with since you can't simply call off the regulators.
However, here are a few things to consider that could make a difference:
-
Ensure that the top people at Treasury, including the Comptroller, are
problem. carefully listening to the same message you are hearing and understand the
-
Encourage Treasury and the Comptroller to take a more measured approach
and deal constructively with the problem so as to avoid destructive economic
consequences. It's really their job -- not yours -- to direct the regulators.
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14712095 P.04
November 26, 1990
Page Three
-
Set the tone publicly by communicating clearly and frequently that you
believe we are on a course toward continued economic growth and that you
encourage finar cial institutions to take prudent risks and make the sensible
loans that their charters envision and that have helped build the U.S.
economy into the World's strongest. You can emphasize that you have been
a business man and know the necessity of credit.
4.
Address the problems of some industries selectively. Let me take as an example an
industry where I have a self-interest but also know something about- the airline
industry. Jet fuel prices more than doubled from August 2 to late October and are
still up some 80%. Ticket prices cannot be raised enough to offset this, and the
industry losses are in billions. A number of airlines will fail in the coming months,
and there is likely to be serious political fallout. Eastern, and Pan Am, TWA,
Continental and others are on the edge. If Continental failed, for example, it would
most likely be grounded, with serious impact on Houston. Other failures would
have similar consequences in cities such as St. Louis and Phoenix, to say nothing of
and may develop recommendations for dealing with it. In the meantime I am
the loss of jobs. Sam Skinner is intimately aware of the problem, is addressing it,
planning sessions with several of your key advisors on the issue.
5.
Work with business leaders to reduce the impact of massive layoffs. Business
leaders do not want to engage in the massive layoffs now being announced at many
financial and industrial companies, but they are concerned that the credit crunch
and the softening economy mean inevitable revenue and profit reductions down the
road. You can indicate that you are working on business leaders' concerns and want
them to consider carefully their own contribution to the problem by trying to avoid
precipitous, massive layoffs. The public would certainly approve of your expressed
public addressed. concern about rising unemployment, which to date you have not really
6.
Prepare economic measures for the State of the Union and New Congress. You can
take advantage of the time available before the State of the Union address to
develop measures to stimulate investment, savings and growth in the economy. By
the time of the State of the Union address, we could be in a deeper recession than
now, and there will be the inevitable Congressional call for Presidential leadership
on the economy. A clear set of Presidential initiatives -- some requiring
Congressional approval and some not -- will help convey the image that you are in
command domestically as well as in foreign affairs.
If it would be helpful to you, I would be pleased to assemble a small and select
group of highly thoughtful people from the business/financial community for an informal
and private chat about all of the above issues.
****
Thanks for the opportunity to comment. Let me close with a personal and more
upbeat note. My son, Fred, is now a Lieutenant on the USS Juneau in San Diego and
departs with his ship and 700 Marines for the Persian Gulf on December 1. He is proud to
Commander in Chief.
be serving and reports that morale is high, with solid across-the-board support for the
TOTAL P 04
THE WHITE HOUSE
WASHINGTON
October 13, 1989
MEMORANDUM FOR EDWARD M. ROGERS, JR.
DEPUTY ASSISTANT TO THE PRESIDENT AND DEPUTY TO
THE CHIEF OF STAFF
FROM:
AMY L. SCHWARTZ
ALS
ASSOCIATE COUNSEL TO THE PRESIDENT
SUBJECT:
Fred Malek's Appointment
Attached is the draft waiver prepared by the State Department to
deal with Fred Malek's financial interests. As we have
discussed, it would be extremely helpful if you could review the
draft to ensure that it describes the job duties accurately and
that the proposed recusal will be workable. FYI, the State
Department has not yet sent the waiver forward for review by the
Deputy Secretary (who needs to sign off on it), but the Legal
Advisor's office does not anticipate a problem.
Although this waiver should resolve the hardest issues, a number
of the more routine steps are still needed -- such as the
drafting of a job description for Malek's basic State Department
appointment, the Presidential Personnel paperwork associated with
giving him the personal rank of Ambassador, and the security
investigation. It is my understanding that Presidential
Personnel is waiting to initiate these steps until it receives
word that the selection of Malek is definite.
Please feel free to call me at x2674 if you have any questions.
Attachment
CC: Diana Kendrick
SENT, BY:Xerox Telecopier 7020 :10-12-89 ; 12:11 ;
TQE
DRAFT 10/12/89
ACTION MEMO
TO:
The Deputy Secretary
FROM:
L - Abraham D. Sofaer
SUBJECT: Waiver Decision: Fred Malek, Special Economic Summit
Representative
ISSUE FOR DECISION
Whether to provide Mr. Malek with a waiver under the
ethics statute barring a government official from acting on
matters in which he holds a financial interest.
ESSENTIAL FACTORS
The federal conflicts of interest statute, 18 U.S.C. 208,
prohibits a government official from participating personally
and substantially in any "particular matter" which would have a
direct and predictable effect on his personal financial
interests. "Particular matter" potentially covers not only
matters involving individual companies but also broad policy
matters affecting classes of companies or industries.
18 U.S.C. 208 (b) (1) permits participation by a Department
employee in particular matters in which he has a financial
interest, if the employee sets forth the relevant particular
matters in which he may be involved, makes full disclosure of
his or her financial interest, and receives in advance a
written determination that "the interest is not so substantial
as to be deemed likely to affect the integrity of the services
which the Government may expect from such officer or
employee." We believe such a waiver is appropriate in the
current case.
The President intends to appoint Mr. Malek with personal
rank of Ambassador to the part-time, uncompensated position of
Special Economic Summit Representative. The Summit will be
held in the United States between May and September of 1990,
and the President has tentatively chosen Texas as its site.
Subject to factors unknown at this time, such as the
unavailability of adequate facilities, the President has
further stated his preference that the city be San Antonio,
- 2 -
with Houston as an alternative. As Special Representative, Mr.
Malek would be responsible for staging the Summit. His primary
responsibilities would include coordinating with
representatives of the participating foreign countries to
determine the date of the Summit and the needs of each foreign
government for accommodations, security, and press relations;
determining the participants needs for hotel space,
communications, air travel, ground transportation, and
conference facilities; and evaluating whether San Antonio or
Houston have adequate facilities to accommodate the Summit.
Further, he would be responsible for logistics and press
coordination. Mr. Malek would have no responsibility or
involvement in developing the agenda or the U.S. Government's
positions on the substantive issues to be discussed.
It is envisioned that the office of the Special
Representative will be organized and staffed along the lines of
the office of the Administrator of the 1983 Economic Summit.
There will be a Deputy Representative, Assistants to the
Representative, and Directors for security, administration,
logistics, advance, press, and operations.
The ethical issue is how to reconcile Mr. Malek's
responsibilities for logistics and administration with his
corporate affiliations and financial interests in travel
companies. Relevant to his prospective appointment, Mr. Malek
is president and is chief executive officer of Northwest
Airlines and is a director of Avis, (and its parent company
Wings Holding), and Caterair (an airline food service firm).
He additionally owns stock in Marriott Corporation ($2.5
million), Caterair ($4.8 million), and Northwest Airlines ($8
million). Marriott has higher than average market shares in
the two Texas cities under consideration. It has two hotels in
San Antonio with 1,500 or 33.6% of the quality tier rooms in
that city suitable for the Summit. In Houston, Marriott has
five hotels, with a total of 2,478 rooms and 23.6% market
share. Northwest Airlines does not maintain hubs in either San
Antonio or Houston; even if the site of the Summit is changed,
it is highly unlikely that the cities in which Northwest
Airlines maintains hubs (Minneapolis, Detroit, and Memphis)
will be selected. There will not be an "official airline" of
the Summit and most key players will not use commercial
airlines to travel to the Summit.
- 3 -
Mr. Malek is also a limited partner with financial
interests in several hotels in Texas and other U.S. cities:
the New York Marriott Marquis ($800,000) Marriott Hotels LP
($150,000); Atlanta Marriott LP ($80,000) i Potomac Hotels LP
(less than $50,000, partnership owns 11 hotels with one in
Dallas and another in Houston) ); Courtyard of Marriott LP
($100,000, partnership owns 50 suburban hotels, with three in
Dallas and 2 in San Antonio); and Marriott Residence Inn LP
($125,000, partnership owns 15 suburban; none are in Texas).
We believe that we can satisfy applicable ethical rules
and protect the integrity of Mr. Malek's government decision
making through a combination of requiring selective sales of
stock; mandating recusal from issues directly bearing upon
selections of hotel, airline and rental cars; and issuing a
carefully focussed waiver for duties that do not bear directly
on his financial interests. (Mr. Malek has sold his interests
in all media related companies.)
With the exceptions listed below, we would generally
authorize Mr. Malek to participate in the overall preparations
for the Summit, including decisions on format for the
discussions, relations with the press, and negotiations with
foreign leaders over timing. We would require that Mr. Malek
recuse himself from deciding where the President and other
foreign leaders would stay, and from any direct dealings with
Marriott or its hotels, until after the decisions as to site of
the Summit and housing of participants are made. Although Mr.
Malek would be authorized in the waiver to determine the
logistical needs of the Summit, such as hotel space,
communications availability, air travel, ground transportation,
and conference facilities and report to the President or his
aides the views of his staff whether San Antonio or Houston is
an appropriate site, he would recuse himself from participation
in the selection of a new site should it become necessary.
Mr. Malek would also be barred from dealing directly with
Northwest Airlines, Wings Holding, and Caterair. He would,
however, be authorized to participate in the logistical
arrangements for the arrival and departure of the participants
even if Northwest Airlines is one of the carriers used.
Similarly, Mr. Malek would be barred from direct dealings with
Avis, and from negotiations and selection of car rentals. We
would authorize him, however, to participate in overall
logistical decisions involving ground transportation.
- 4 -
We believe that you can reasonably conclude that Mr.
Malek's financial interests would not be so substantial as to
affect the integrity of his duties as we have enumerated them.
While Marriott will receive some incremental financial benefit
from the selection of San Antonio or Houston where it enjoys
higher market shares, the sites were already identified by the
President. Because Marriot's nationwide holdings guarantee
that it would receive a significant financial benefit wherever
the Summit is held, we do not believe that Mr. Malek's
assessment of the two cities would be swayed by the marginal
additional benefit to Marriott that would result from the
choice of either of these two cities where Marriott's market
share is larger than average. Further, because a Summit would
require virtually all the remaining quality rooms in the chosen
city (an estimated 10,000 people will be attending the Summit),
Marriott is unlikely to have any significant competitive
advantage over other hotels in the same city. Finally, Mr.
Malek's interests in Marriott and related hotels do not
comprise the major part of his total assets.
RECOMMENDATION
That you sign the 18 U.S.C. 208(b) (1) waiver attached, in
two originals, at Tab A.
Approve
Disapprove
Attachments:
Tab A: Proposed waiver determination (two originals)
Tab B : Recusal letter
Drafter: L/M:LJacobson
7263K 10/12/89
Clearances: L/M:JHThessin
:ERRindskopf
WH: ASchwartz
OGE: FNebeker
Determination
To: Fred Malek
I have been advised of the various particular matters that
a Special Economic Summit Representative may be asked to
address. I have been advised also that you will not have
responsibility or involvement in developing the substantive
agenda or the U.S. Government's positions on the substantive
issues to be discussed. In light of these matters, I have
reviewed the information you have provided on your financial
interests.
In accordance with 18 U.S.C. 208 (b) (1), I have determined
that, with respect to particular matters for which you would be
personally and substantially responsible as Special Economic
Summit Representative, your financial interests, including
corporate affiliations, in Marriott Corporation, Avis Inc.,
Northwest Airlines, Inc., Caterair, Wings Holdings Inc.,
Marriott Hotels Limited Partnership, Atlantic Marriott Limited
Partnership, Potomac Hotels Limited Partnership, Courtyard
Limited Partnership, and Residence Inns Limited Partnership,
companies which may be affected by the holding of the Summit,
are not so substantial as to be deemed likely to affect the
integrity of the services which the Government may expect from
you in these matters.
You must, however, recuse yourself from participation in
the decision as to the selection of the site of the Summit
other than participation in the activities explained below, in
the selection of the hotel where the President and other
foreign leaders will stay, in negotiation of hotel rates, and
in negotiation and selection of commercial air service and car
rentals.
Consistent with these recusals, you may participate,
however, in the overall preparations for the Summit, including
negotiations with foreign leaders over timing, decisions on
format for the discussions, and relations with the press. You
may also assume general responsibilities for the logistics and
administration for the Summit, including developing the needs
of the Summit for hotel space, communications availability, air
travel, ground transportation, and conference facilities, and
report to the President or his aides whether in light of these
factors, San Antonio or Houston are viable sites. Further,
after the Summit site is selected and hotels for participants,
including the President are determined, you may have official
dealings with Marriott, as appropriate. You must, however,
recuse yourself from participation in the selection of a new
site should it become necessary.
Should your responsibilities change in any way you are
always free to request a further waiver.
Deputy Secretary of State
October , 1989
09/12/1989 10:03 CARYLE GROUP
202 628 2872
P.02
THE CARLYLE GROUP
A Private Merchant Bank
1001 Pennsylvania Avenue, N.W.
Washington, D.C. 20004-2505
(202) 347-2626
September 12, 1989
VIA FACSIMILE
Mr. Ed Rogers
The White House
Washington, D.C.
Dear Ed:
Attached in case you have missed it is the complete A.P.
story in + I thought you and John might be interested in seeing it
light of the favorable comments by two key members of the
American Jewish Leadership, Seymour Reich and Abraham Foxman.
Sincerely,
Fred
Frederic V. Malek
09/12/1989 10:03 CARYLE GROUP
202 628 2872
P.03
AP-BA-09-11 0858
By CHRISTOPHER CONNELL
Associated Press Writer
WASHINGTON (AP) Jewish leaders are backing Frederick V. Malek
for a White House role after hearing the business executive's apology
for an incident in the Nixon administration with anti-Semitic
overtones. The White House said Sunday that President Bush wants Malek to run
next year's economic summit of Western industrialized nations,
expected to be held in Texas.
Malek, 51, a central player in three major business deals this
including the nearly $4 billion takeover of Northwest Airlines,
year, said he still must make arrangements with his partners before taking
on the part-time White House post.
But Malek has cleared one possible hurdle in a series of private,
fence-mending meetings with leaders of major Jewish organizations.
Malek said he both explained and apologized for his role in the
1971 incident in which he complied with a Richard Nixon request to
find out how many top Bureau of Labor Statistics officials were Jews.
Malek resigned as a top Bush campaign adviser and deputy
Republican chairman last Sept. 11 after reports about the memo
resurfaced. He denied charges of anti-Semitism, but said then he was
relinquishing his posts "because of my belief that nothing should
interfere with the vice president's victory in November."
Sevmour D. Reich, chairman of the Conference of Presidents of
Major American Jewish Organizations, said Malek "made a mistake 18
years ago when he agreed to a regrettable request by President
Nixon." But Reich added that Malek "has taken pains to assure the Jewish I
believe he is sincere ... and that he intends to serve the president
community that he realizes his error and that he intended no harm.
and the country with integrity and with respect for all Americans. we
wish him good luck in his new assignment."
"He did make one mistake and he's apologized for 1t," said
Abraham H. Foxman, national director of the Anti-Defamation League of
B'nai B'rith. "I think he's Dut it behind him."
White House spokesman Roman Popadiuk said: "The president has
to Fred Malek about (the summit post). The president would
spoken like him to do it. No final decisions have been made. We do expect it
to occur."
Malek, 51, who ran last year's Republican convention in New
Orleans, said he wrote the memo only after ignoring several earlier
demands from Nixon for the information.
Nixon had complained to aides that a "Jewish cabal" within the
bureau was trying to undermine his economic policies, and demanded to
know how many top officials were Democrats and Jaws.
Malek said he provided the data on Democrate after a check of
voter registration rolls, but balked at fulfilling the rest of
Nixon's query.
"I refused four times," Malek said Sunday. "The fifth time he
came back and gave me a direct order through (chief of staff H.R.)
Haldeman, so I gave him a number."
09/12/1989 10:04 CARYLE GROUP
202 628 2872
P.04
"I regrat my compliance. It was a mistake," said Malek, a West
Point graduate who was 4 special assistant to Nixon in 1970-73 and
then deputy director of the office of Management and Budget until
1975.
"I don't think anyone has ever found any shred of evidence of
bigotry or anti-semitism in my life, except this footnote," Malek
said in a telephone interview from his McLean, Va., home.
Before accepting Bush's offer, Malek said he first must make sure
his other business obligations allow him to take on the job of summit
coordinator and that there are no conflicts of interest.
Malek is a former Marriott Corp. executive and president of
Marriott Hotels.
In addition to the Northwest Airlines takeover, he was a principal
in two other recent major business deals: the purchase of Coldwell
Banker's commercial real estate operations from Seare for $300
million and the $800 million sale of Marriott's airline catering
business to Malek and executives of the catering division.
Bush attended a party at Malek's home overlooking the Potomac last
month to mark the first anniversary of the GOP convention.
The last summit was in Paris in July. Bush is believed intent on
holding the next in Texas - probably San Antonio or Houston - in late
apring. Neither the date nor site is firmly set.
AP-BA-09-11 0858EDT
FORTUNE PEOPLE
CHARLIE ARCHAMBAULT-MATRIX
BY MARK ALPERT
With nearly $300 million pro-
succeed Ben Love, 64, as CEO
vided largely by Japanese inves-
of the Houston-based institu-
tors, Lodestar has quietly ac-
tion (assets: $18 billion) in De-
quired toehold stakes-less than
cember. Love, who will remain
5%-in halfa dozen companies.
a director, kept the bank afloat
Unlike the typical leveraged-
while its competitors suc-
buyout group, Lodestar won't
cumbed to hard times. "You
acquire more than 20% unless
can't fill those kinds of shoes,"
the managers are amenable.
Shapiro says. "You just take
"I'm sure they're intimidated
the foundation he built and
at first," Baldwin says. "When
move it forward."
we call, they probably think,
A graduate of Harvard with
'Okay, here it comes.' But we
an MBA from Stanford, Sha-
tell them there's no need to get
piro joined Texas Commerce's
excited." Baldwin and his
finance division in 1972 and
Lodestar partners-Merrill
rose to chief financial officer
Lynch alums Ken Miller and
four years later at age 29. He
New dealmaker Malek taking a break at home after his triple play
Tull Gearreald-say they're
helped establish the cautious
content to cajole reluctant top
credit policy that saved the
officers into restructuring the
BIG DEALS SOMETIMES COME IN THREES
company or taking it private.
Frederic Malek, 52, the for-
mal advisers to the President. A
Lodestar stands to pick up un-
mer Marriott Hotels president,
former Green Beret who was
derwriting fees and hopes to
STEVEN PUMPHREY
has set up shop as a merchant
an aide in the Nixon White
see its holdings run up in value.
banker-and how. In April he
House, Malek says he wants to
An example of Lodestar's
brought together a disparate
play an advisory role in each of
finesse is the proposed re-
group of investors, which in-
his three ventures: "I want to
structuring of Kinder-Care, the
cludes Sumitomo Bank, Bank-
help create value after the ac-
$572-million-a-year company
ers Trust, and Westinghouse
quisition is done." And deal
in Montgomery, Alabama, that
Credit, to buy Coldwell Bank-
No. 4? Right now he's not
started with day care centers
er's commercial real estate op-
pressing his luck.
and diversified with mixed suc-
erations from Sears for $300
cess into shoe stores, savings
million. In June he teamed
and loans, and insurance. Lode-
with Alfred Checchi, a former
LBO BOY SCOUT
star's partners argued that the
Marriott compatriot, to make a
Speaking of dealmakers:
company would look better to
successful $3.65 billion offer
CEOs of undervalued compa-
investors if it were less clut-
Marc J. Shapiro: a lone star
for Northwest Airlines. And in
nies may be getting a call from
tered. So Kinder-Care is spin-
July, Marriott agreed to sell its
former Morgan Stanley chair-
ning off the day care subsidiary.
bank when the Southwest's
$800 million airline catering di-
man Robert Baldwin. After five
Says CEO Richard Grassgreen:
economy soured in the mid-
vision to Malek and the divi-
years in semiretirement, Bal-
"Their word was clearly to be
1980s. The Federal Deposit In-
sion's management.
dwin, 69, is chairman of a year-
trusted." No wonder. Baldwin,
surance Corp. has bailed out
Malek admits to having little
old investment banking bou-
who built Morgan Stanley into a
what ten years ago were the
dealmaking prowess, but he has
tique called Lodestar Group.
Wall Street powerhouse during
bank's four main competi-
good connections.
his ten years as chief, has been
tors-MCorp, First City Ban-
He's an adviser to
Robert Baldwin: the gentle persuader
called "the Boy Scout of the in-
corp of Texas, RepublicBank,
Carlyle Group, a
vestment banking business."
and InterFirst-and non-Tex-
Washington, D.C.,
ans now run most of their oper-
merchant banking
ANDY
ations. But Chemical Banking
firm that includes
A TEXAS SURVIVOR
Corp. received no federal aid
former Defense Sec-
The past few years have cost
when it bought Texas Com-
retary Frank Car-
Texas many of its top bankers,
merce for $1.2 billion in 1987.
lucci. He is also
but Marc J. Shapiro is one na-
Shapiro wants to build the
a member of the
tive who survived the cuts.
bank's customer base. Says he:
Bush Administra-
Long the Wunderkind of Texas
"We gained strength through
tion's kitchen cabi-
Commerce Bancshares, Sha-
the turmoil." One of the few
net, a group of infor-
piro, 42, has been named to
that did.
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erful, yet extremely easy
nies for free-that's a total of 1000 companies.
PROSPECTOR
to use. Paradox won
Give Paradox a try-free!
hands down."
Maybe you'd like to start with a free trial version
James B. Hayes
Publisher, Fortune Magazine
of Paradox 3.0.
It's easy to order. Simply call:
The best way to reach the Fortune 500
The Fortune 500 Prospector, developed by MZ
800-345-9111
Group, uses advanced Paradox technology to let
3.0
you instantly analyze, rank, and segment compa-
PARADOX
nies in any way you want. And it contains more
PARADOX
PARADOX
TAREOF
information than the printed version, like the
names and phone numbers of key executives. So
you can print reports, mailing labels, and company
profiles. You can also add your own notes to a com-
pany or add new companies, and then compare
them to the Fortune 500.
BORLAND
Paradox is a registered trademark of Borland International, Inc. FORTUNE and FORTUNE 500 are trademarks of the Time Inc. Magazine Company. Used with permission Copyright 1989 Borland International, Inc All right reserved. BI 1317B
Code: MP57