Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Source Description
This file contains memoranda regarding possible candidates.
Scholar Source Context
Document identity
localId
1561372
label
Domestic Council and OMB Directorships
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
1561372
sourceUrl
contentType
document
title
Domestic Council and OMB Directorships
description
This file contains memoranda regarding possible candidates.
citationUrl
collections
Richard B. Cheney Files
Richard Cheney's General Subject Files
subjects
President (1974-1977 : Ford). Domestic Council. 8/9/1974-1/20/1977
Office of Management and Budget. 7/1/1970-
Presidential appointments
thumbnailUrl
largeImageUrl
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
1561372
coverageEndDate
logicalDate
1974-11-30
month
11
year
1974
coverageStartDate
logicalDate
1974-10-01
month
10
year
1974
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
4c282364b6800abe
ocrText
The original documents are located in Box 3, folder "Domestic Council and OMB
Directorships" of the Richard B. Cheney Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 3 of the Richard B. Cheney Files at the Gerald R. Ford Presidential Library
THE WHITE HOUSE
WASHINGTON
October 17, 1974
MEMORANDUM FOR:
DONALD RUMSFELD
FROM:
WILLIAM N. WALKER
Attached is a preliminary memorandum on possible candidates
for the OMB and Domestic Council Directorships.
If you agree with these (this) recommendation(s), we will staff
to the following:
X
The Vice President
Dean Burch
X
Robert Hartmann
X
Ken Cole
X
John Marsh
Fred De Baca
X
Philip Buchen
William Eberle
X
Bill Timmons
Stan Scott
X
Anne Armstrong
Brent Scowcroft
Roy Ash
William Seidman
Bill Baroody
Mary Louise Smith (RNC)
Agree
Disagree
See me
Other Instructions
THE WHITE HOUSE
WASHINGTON
MEMORANDUM FOR THE PRESIDENT
FROM:
DONALD RUMSFELD
Subject:
The OMB and Domestic Council Directorships
These two spots should be considered together. They are your
principal staff for developing and implementing all domestic policy.
They each manage on your behalf a process by which this is done.
Both spots require individuals of strength and diplomacy. Both
handle disagreements between departmental desires and administration
needs. The disagreements get hot. Both must assure that the decisions
brought to you are fairly put, that the options have been carefully
thought out and the relevent facts accurately presented.
In my view, these should both be staff positions without cabinet
rank. But as staff managing decision processes on your behalf, they
have great power. It is vital that they are not seen as willful, indepen-
dent decision makers. They should be facilitators of policy and its
implementation. They should not be autonomous policy czars. Nor
should they be highly visible spokesmen. Use of these people to
explain administration policy, either to the press or before Congressional
hearings, should be minimized.
While they have much in common, both posts are unique and
require men of separate experience. There follows some brief
comments on each post and some possible candidates.
- 2 -
OMB and its Director
OMB remains a reservoir of very able career professionals.
It has a long tradition of dedicated service to the President in the
formation and administration of the budget. In recent times, OMB
has been called on to get into matters far afield from the budget.
In my judgment that should be reversed. The management business
has been overblown. The principal focus of OMB and its Director
should be the budget.
Most important, whoever takes over OMB must have your
strong personal confidence. You could be spending a lot of time
with him. He will have the aide of a very capable man in Paul O'Neil,
the nominee for Deputy. But still the new Director, particularly if
he takes over in these last days of the budget cycle, would ideally
have a personal background in government budgeting. If he has that,
he can get the best from OMB in short order. With that, he can be
most effective in putting your imprint on this, your first budget.
The OMB Director should have the ability to understand the
budget's economic impact and its relationship to other economic
policy. He should be able to contribute in such discussions. But
this is not the place for a macroeconomist. This is much more a
post for a first rate accountant with a capacity for vision. If the
candidate has a political flavor other than "professional, 11 it is
probably wise that it be conservative.
You may wish to consider the following names:
1. Frank Carlucci. Mid-40's. Presently Under Secretary
of HEW. Prior to that he was Deputy OMB Director. He
also served as head of OEO. A career foreign service
officer who is very able. He has been through a lot of
"fires" and handled them all exceedingly well. He has
the OMB background and enjoys strong personal support
on the hill. He would, however, prefer to return to a
foreign post.
- 3 -
2.
Norman Hurd. Early 60's. Presently Secretary to Governor
Malcomb Wilson. He served in this post with Nelson Rockefeller.
Prior to that, he was budget director for the State of New York
under both Rockefeller and Dewey. Among the professionals
in the budget business, he is regarded as highly intelligent
and vigorous. The fact that he comes from New York and is
so personally close to Rockefeller deserves some considera-
tion.
3.
Harvey Kapnick. 49. Presently Chairman of Arthur
Andersen and Co. He is a very able accountant with a
considerable ability at managing professionals. However, he
has had no government experience.
4. John McCarter. 38. Presently Senior Vice President of
De Kalb Economics. Prior to that, he was budget director
of the State of Illinois under Governor Ogilive. He was
a White House Fellow who served as assistant to Charles
Schultz when he was the budget director. He is reported
to be very bright with an excellent knowledge of government
budgeting.
5. Wayne McGowan. Mid-40's. He is presently Deputy
Secretary of Administration for the State of Wisconsin. He
was Secretary of Administration under Republican governor
Warren Knowles. Prior to that, he was budget director.
He instituted program budgeting in the State. I believe
that lately he has spent a good deal of time consulting with
OMB on the relationship between Federal and state budgeting
systems. He is regarded as perhaps one of the brightest
younger men in the public administration fraternity both
for his technical knowledge and for his effectiveness with
political leaders. His political associations have been
Republican.
6. Paul O'Neil. Early 40's. Presently an Associate Director
of OMB and nominee for Deputy Director. He is extremely
bright. A thorough professional who has functioned well with
three different OMB directors. I believe he enjoys a fairly
good reception on the hill.
- 4 -
7.
Vernon Orr. Mid-50's. Presently Director of Finance
for the State of California where he succeeded Cap Wineberger.
The name was suggested by Dave Packard and others but
Orr only gets rather a so-so response from the fraternity
of professional budget men. He does carry with him some
of the conservative flavor of the Reagan administration.
8. David Packard. Former Deputy Secretary of Defense.
A terrifically able person who could more than handle the
job if he would take it. He might also do well at the
Domestic Council.
9
John Robson. Early 40's. Robson is a partner in the large
Chicago law firm of Sidley and Austin. He is a Republican
who has served in the Johnson Administration as a budget
bureau consultant/White House staffer working on economic
matters and later as Under Secretary of Transportation.
He is remarkably able. He has an extraordinary ability to
coordinate people, a first rate mind and real political savvy.
He would also do exceedingly well as Director of the
Domestic Council.
10. Bill Seidman.
- 5 -
The Domestic Council
The Domestic Council was an idea of the Ash Council. To some
extent it was an expansion and formalization of what, in fact, had
gone on in earlier administrations. Its creation justified an expanded
budget and staff. The Council as a whole was never much more than
ceremonial. The work was to be done by subcommittees organized
around issues.
Recognizing that domestic issues frequently span several depart-
ments, membership on subcommittees consisted of the most directly
affected cabinet secretaries, one of whom served as Chairman. Staff
work would be led by a permanent Domestic Council staff member.
He would run a working group made up of representatives of each of
the cabinet secretaries on the subcommittee. OMB was also frequently
represented simply because it had a reservoir of considerable knowledge.
Domestic Council staff members were also called on to coordinate
the handling of various hot issues or "fires. 11 The staff grew to some
35 professionals and, at its high point, did more directing of responses
than coordinating. It is fair to say that on most hot matters the
problems were lifted out of the departments and brought to the White
House for handling.
The basic idea and procedure of the Domestic Council has merit.
It is probably what should occur even if there weren't a legal entity called
the Domestic Council. But, as always, it's the people who make an
entity one thing or another.
The Director of the Domestic Council is the place for your
principal domestic policy assistant. Again, he should be a facilitator
of decision making, not the decision maker. He should have your
complete confidence but should not be the domestic president. He
will be an informed aide who can't avoid being thrust in the middle of
various "fires. 11 But his basic method should be to help the cabinet
to higher effectiveness in handling such "fires. 11 It should not be to
usurp them.
- 6 -
Two questions must be considered in filling this post. First,
what should be done with the state and local government liaison function?
For want of a better idea, it was folded into the Domestic Council staff
responsibility when Agnew left office. However, I don't believe it was
a bad idea for the problems being handled by the Domestic Council
and its Director frequently involve state and local government. I
am sure the governors and mayors would like to have an independent
White House assistant to handle their problems. But this can cause
a real confusion and wheel spinning. If the function continues in
the Domestic Council, then it could affect the choice of a Director.
Second is the question of Rockefeller's participation in domestic
policy. He is sure to have a strong interest in the construction of
your domestic program. If he is to have some responsibility in
that connection, then you may want him to have a say in the selection
of the Domestic Council Director and staff. While the Director and
staff is to be primarily your staff, I think it desirable that the appoint-
ments be made in consultation with Rockefeller.
Individuals considered for this post should have considerable
political seasoning especially if the post will continue to have the state
and local government liaison function. Such experience can be gained
as an elected public official, as aide to one, or in an executive branch
post involving considerable heat. The individuals considered should
each ideally have some background in dealing with the substance of
one or another area of domestic policy; housing, labor, education,
transportation.
Even though he is to facilitate policy making instead of dominating
it, he must have a lot of creativity and drive.
He should be a good organizer of men and ideas. The job takes
a tough mind to make headway in subject areas that are frequently
complicated substantively and politically.
Perhaps you would want to consider the following names:
1. John Robson. Discussed earlier as a possibility for OMB.
He is perhaps more suited for this post.
2. David Packard. Also probably more suited for this post.
- 7 -
3.
Elliot Richardson. There is no question about his ability
or experience. He might be interested in the post but the
appointment could anger conservatives.
4. Bill Seidman.
5. James Q. Wilson. Harvard professor in mid-40's.
Excellent substantive reputation and some reputation as
an organizer of policy development. However, he does not
have political experience at "fire" fighting.
6. Jim Lynn. He is smart and seasoned. He would be very
good at "fire" fighting. If combined with a strong academic
like James Q. Wilson as Deputy, it could work well.
However, the appearance of shifting personnel from one
post to another may not be desirable.
7. Philip Areeda, a brilliant lawyer with some Washington
seasoning.
10/2/21/74
ORGANIZATION AND APPOINTMENTS IN THE ECONOMIC AREA
For one reason or another, change will occur in many of the
high-level Administration posts over the fairly near term--say within
the next 7 months. Before this takes place, it would be useful to
think about what will have resulted after these changes have occurred.
What kind of a team will have evolved. Hopefully, replacements in
each high-level post will not only handle well the responsibilities of
their particular post but also contribute to the overall character of
your Administration.
The posts fall into several areas--domestic, international,
economic and natural resources, and energy. In the economic area, it
is useful to think about the organization, responsibilities and people
in seven different posts. They are: White House staff, Treasury,
OMB, CEA, Labor, Commerce, Agriculture, Special Trade Repre-
sentative--CIEP.
The ideal for this area would be to end up with a set of individuals
constituting a working team. Each would have a unique and substantial
expertise, each would be personally secure in his own ability and
appreciative of the abilities of each of the others. Each would match
the needs of his particular post but beyond that would contribute to
the balance and wholeness of the team.
Several points should be made. To some extent they apply equally
to other major areas, but are discussed here with respect to the
economic area.
1. Good people working together is the key. There are natural
and inescapable overlaps between many of these jobs. There is no
place here for people who can't rise above turf fights.
2. While the people must have technical competence, the ability
to handle their posts, there are some places where they must also
have stature. Either they must already have it or they must have
the potential for obtaining it. In the economic area, it is very
important. The "optics" have a lot to do with economic confidence.
3. There is a need for fresh blood. Moving the same faces from
box to box leads to the appearance that aimlessness and disorder will
continue.
- 2 -
4. The policy mechanism and its organization are important.
It is taken as signifying the real influence or lack of it that these posts
will carry. Few who have the ability and stature to handle these
posts are going to come to Washington simply to ride around in limosines.
They will look at whether they will have a say. If there is an elaborate
heavily staffed policy mechanism between them and you, they will
conclude that the real shots are going to be called in the White House
with or without their advice.
5. Timing is important. The sooner the vacancies occur and
replacements are made, the sooner the idea of a "Ford team" occurs.
Turnover occurring sooner rather than later need not and should
not appear like a purge. Of course, some will always talk about
purges not matter when the change occurs. But properly handled, a
change can be made which is seen for what it is; the fulfillment of
the natural desires of everybody involved.
My comments on the organization, the various posts and the possible
candidates follow:
Organization and the White House Role
We have a large number (perhaps too large a number) of
organizations set up to participate in economic policy for the nation.
This fact together with the number of entities in other areas requiring
coordination influences the role of the Assistant to the President
for Economic Affairs.
A brief review of the organizational structure might provide
helpful background.
A. Economic Policy Board
The Economic Policy Board is intended as the mechanism
for general coordination of all the different agencies and groups
in the economic area. Each of these agencies and groups have
more specialized program or economic policy concerns.
They are:
Operating Agencies
Treasury
Commerce
State
Labor
Interior
HEW
Agriculture
HUD
Transportation
- 3 -
Other Policy Bodies
Council of Economic Advisers
Office of Management and Budget
Council on International Economic Policy
Council on Wage Price Stability
Cabinet Committee on Food (will die 12/31/74)*
Advisory Groups
National Advisory Council on International
Monetary and Financial Policies
President's Committee on East West Trade
Labor Management Advisory Committee*
National Commission on Productivity and Work
Quality* (P.L. 93 311)
National Commission on Industrial Peace*
National Commission on Shortages* (about to be
established)
The Secretary of the Treasury has been named Chairman of the
Economic Policy Board and chief economic spokesman. The Assistant
to the President for Economic Affairs is a member of the Economic
Policy Board and serves as its Executive Director. The Secretary
of the Treasury and the Assistant to the President for Economic
Affairs have been named Chairman and Deputy Chairman, respectively,
of the following groups:
Council on International Economic Policy
Council on Wage and Price Stability
National Advisory Council on International
Monetary and Financial Policies
The Troikaand Quadriad are two processes by which the
Administration's economic projections are developed. The Troika
consists of the Chairman of the CEA, the Director of OMB and the
Secretary of the Treasury. The Quadriad is the Troikaplus the
Chairman of the Federal Reserve Board. It is not clear how this
process will be affected by the Economic Policy Board. The Executive
Committee of the Economic Policy Board is really the Triad plus the
Assistant to the President for Economic Affairs and the Executive
Director of the Council on International Economic Policy. The
Chairman of the Federal Reserve Board is also invited to attend
* These groups have not been named in the Executive Order setting up
the Economic Policy Board. They are in various stages of existence and
are presumed to report through the Economic Policy Board.
- 4 -
meetings of the Economic Policy Board Executive Committee. So
they are really the same players here with the addition of the
Assistant to the President for Economic Affairs and the Executive
Director of CIEP.
B. Relationship to Other Councils
Energy Resources Council
Chaired by the Secretary of Interior, this group is intended
for the general coordination of energy activities in the following
agencies and groups:
State
AEC
Treasury
OMB
Defense
Energy Research and Development
Justice
Administration
Commerce
Environmental Protection Agency
Transportation
Council on Environmental Quality
National Science Foundation
Federal Energy Administration
The Assistant to the President for Economic Affairs and the
Executive Director of the Domestic Council have also been included
as members.
The urgency and importance of this subject matter gives the
Energy Resources Council a status comparable to the Economic
Policy Board. But our interest in energy is driven by economic
concerns. Actions taken on energy have an enormous impact
on economic policy. However, the link between the policy develop-
ment processes conducted by these two councils is not clear.
Domestic Council
The Domestic Council is intended as the framework for
developing all domestic policy. Its membership consists of
virtually the entire cabinet with the exception of the Secretarys
of State and Defense. The Executive Director of the Domestic
Council is a member of the Energy Resources Council but not a
memb er of the Economic Policy Board. Likewise, the Assistant
to the President for Economic Affairs is not a member of the
Domestic Council.
- 5 -
The link between the policy development processes of the
Economic Policy Board and the Domestic Council is as yet unclear.
The concerns of these two councils are very related. Is
unemployment compensation legislation a matter for the Economic
Policy Board or the Domestic Council? In whose jurisdiction does
it lie? To a large extent there will always be overlaps. These
overlaps and potential conflicts can be minimized if the Assistant
to the President for Economic Affairs, the Executive Director of
the Domestic Council, the Executive Director of the Energy
Resources Council and the Director of OMB all have an inclination
to work together.
With that background, there is the question as to the role
that should be played by the Assistant to the President for Economic
Affairs. There are two very different approaches. One is a leadership
role; the other is a coordinator's role.
The leadership role would see the Assistant to the President
with a fairly large staff. He would be a visible and frequent public
spokesman on economic policy. He might personally handle some of
the hot matters such as a coal strike. He might even have cabinet rank.
The alternative or coordinator's role would be much less visible.
His work would be inside, not outside. He would manage the process
by which decisions are reached and implemented. In that connection,
he would task various agencies and entities for research and policy papers.
But he would not do it himself. He would not be heavily staffed. He
would have no independent analytic capability. He would not make the
decisions, nor implement them himself. He would not lead the team.
He would help it operate as a team. He would not be a spokesman,
leaving that to the Secretary of the Treasury. This role and method
of operation would be quite similar to that already suggested for the
Domestic Council.
I have a very strong preference for the inside, non-visible
coordinator type of Executive Director as opposed to a leader and
spokesman.
- 6 -
Assistant to the President for Economic Affairs
I think my view is clear that this should be a low-visibility
inside job. It is a tough job of coordination requiring both a ramrodder
and a harmonizer. It would be useful if the individual had some back-
ground in both government and economics.
Bill Seidman is it, unless, of course, he we re to take over a
different post. If that were the case then the following might be
considered as possible candidates:
John Byrnes. Former member of Congress from Wisconsin.
You know him well.
John Dunlop. 60. Professor of economics at Harvard.
Former Director of the Cost of Living Council. Dunlop is
a mediator. He clearly has the brains and background, but
might be better used working exclusively in the labor area.
William Eberle. 51. Presently a Special Trade Representative
and Executive Director of the Council on International Economic
Policy. Prior to Government, he was Chairman and President
of American Standard, Inc. Eberle is intelligent and an able
negotiator.
Bob Ellsworth. 48. Presently Assistant Secretary for Defense
for International Security Affairs. As you know, he is bright.
He has a good sense of Congress and some background in
economics. This was obtained as an investment banker and
the Congress.
William Leonhart. Late 50's. Leonhart is a Career Foreign
Service Officer with personal rank of Ambassador. He is
presently Deputy Commandant of the National War College
and has served as Ambassador to Yugoslavia and Tanganyika.
He was detailed to the Johnson White House for the Vietnam
task force. He is extremely bright. He is both a good conceptual
thinker and a tough thinker in that he is quick to isolate the issues.
Though he has no deep background in economics, he is very
experienced with Government policy-making processes. He
is personally a ramrodder.
- 7 -
John Robson. Early 40's. Partner in a large Chicago law
firm of Sidley and Austin. Discussed earlier in connection
with the Domestic Council and OMB. He is a tremendously
able man particularly for this kind of coordination role. His
experience with wage price jawboning during the Johnson
Administration and a continued interest in the area give him
a good background.
William Walker. 36. Presently head of the White House
personnel operation. Bill is a very able lawyer and served
as both General Counsel of the Cost of Living Council and
later of the Federal Energy Office.
Treasury
If the Secretary of the Treasury is to be the chief economic
spokesman for the Administration, this post requires a person of
real stature. He should enjoy a strong personal reputation, both at
home and internationally. He will be highly visible and should be able
to handle himself in the public arena. He will be called on to speak
frequently and testify before Congress on a wide variety of economic
issues. Because of this job's public and policy demands, most of
the Treasury administrative responsibilities will fall to the Deputy
Secretary who should be carefully chosen.
Some names to be considered:
John Byrnes. 61. Excellent background and stature.
Aldwin W. Clausen. 51. President and Chief Executive
Officer of the Bank of America. A lawyer who has spent
his career within this, the world's largest bank. He is highly
recommended by John McCome and David Packard. While
clearly a fine banker, he may lack the experience in the public
arena to prepare him for this job.
Gaylord Freeman. 64. Retiring Chairman of the First
National Bank of Chicago. He is bright, articulate, strong
and probably not ready to retire. However, he is reputed to
be somewhat abrasive and difficult to work with in a team sense.
There are also indications that his reputation as a doer might
be overblown.
- 8 -
Gabiel Hauge. 60. Until recently, Hauge was President
and Vice Chairman of the Manufacturers Hanover Trust Co.
From 1953 to 1958 he served as Special Assistant to President
Eisenhower for economic affairs. He was considered for
Secretary of the Treasury at the outset of the Nixon Administration.
He has an excellent reputation and some Washington experience.
Melvin Laird. 52. While not from the banking world, he has
the strength and stature required.
David Packard. 62. Again, he has the strength and stature
needed if he would do it.
Robert V. Roosa. 56. Dr. Roosa is presently a partner
of Brown Brothers, Harriman and Co., a private international
banking concern. Prior to joining Brown Brothers in 1965,
he was Under Secretary of the Treasury for Moneatry Affairs.
He has authored and co-authored (with Milton Freedman) several
books on money and banking, dealing particularly with international
monetary issues. He is thought to be extremely intelligent and
highly regarded in both academic and banking circles here and
abroad. He is a Democrat.
William Scranton. 57. He has the stature and the ability if he
would do it.
Walter Wriston. 55. Chairman of CITICORP. He is a favorite
who has been signed on to almost any and every Government
advisory group assembled in the economic area since 1969.
He is a very aggressive banker; not afraid to push regulators to
the edge. Thought to be extremely bright. He possesses a sort
of country charm and candid manner that might make him
effective publicly. However, some fear that he may lack
sufficient political sensitivity to avoid the unneeded flaps.
Also, a rumor of his appointment about a month ago produced
some polarization in the New York financial community.
Department of Labor
Whoever has this post will have much to do with securing
reasonable labor settlements leading up to and through the very
heavy bargaining year of 1976. In the short run, of course, there
is the prospect of a coal strike.
- 9 -
The individual should have a strong background in labor and
industrial relations. It is doubtful that he could be found within
the ranks of Labor. Historic rivalries between unions tend to make
it difficult for a past union official to be effective.
Likewise, someone with experience exclusively in management
could have difficulty gaining labor confidence. An experienced
mediator is a possibility. Whoever it is must be tolerated by
organized labor.
Some possible candidates:
John T. Dunlop. 60. From January, 1973 to June, 1974 he was
the Director of the Cost of Living Council. Is the former Dean
of Harvard and Chairman of the Economics Department. He is
at the same time regarded as both an able mediator and
economist. This gives him an ability to not only help resolve
disputes but also to look for ways to improve the very bargaining
structure itself. He would be ideal. He is close to and respected
by virtually every major labor leader including George Meany.
Robin Fleming. President of the University of Michigan. He
is a lawyer/mediator who has survived in the tough game of
higher education. You probably know Fleming and have your
own views about his suitability for the post.
William Usery. Mid-50's. Bill is an able mediator who
shares Dunlop's desire for straightening out basic bargaining
structures. He is presently head of the U.S. Federal Mediation
and Conciliation Service.
Arnold Weber. Early 40's. Dean of the business school of
Carnegie Mellon Institute. He is an economist and mediator.
He has served as Assistant Secretary of Labor and Deputy
Director of OMB before becoming the first director of the
Cost of Living Council. He also served on the Pay Board where
he may have alienated portions of the labor community. He has
a strong mind and a personality which can, on occasion, be
abrasive. He is a Democrat.
- 10 -
Commerce Department
The Department itself is almost purposeless. It is an
accumulation of agencies- - the National Bureau of Standards,
National Oceanographic and Atmospheric Administration, the
Economic Development Administration, the Census Bureau, etc.
It has been previously thought of as a place to slot some prestigious
businessman who would be an advocate for business. However,
the constituency is sufficiently informed to understand that the
post is without power unless the individual has personal influence.
It would seem wise to choose an individual who had both
prestige and specific substantive expertise to contribute. Here
it might be useful to place somebody who had a background in the
high technology industries or in the international trade of goods.
Alternatively, the post could be used to find somebody who
knew about business but helped the rest of the cabinet be more
broadly representative.
Ann Armstrong. 47. Her political ability and experience
in the public eye would do a lot for the cabinet as a whole.
She has had limited business experience.
Dean Burch.
Kating
John Byrnes. Former member of Congress. You know him
very well.
Resort
Catherine B. Cleary. 58. President of First Wisconsin
Trust Co., the largest bank in Milwaukee. She has served
as Assistant Treasurer of the United States (1953) and from
1953 to 1954 as Assistant Secretary of the Treasury.
fletches
William Coleman. Mid-50's. Coleman is a very successful
business lawyer in Philadelphia. He was first in his class at
Harvard and law clerk to Justice Felix Frankfurter. He is
active in the American Civil Liberties Union. He served on
the Price Commission. He is black and a Republican. His
appointment would bring business experience and some
exposure to price policy to the post.
- 11 -
William Eberle. 51. He is presently Executive Director
of CIEP and Special Trade Representative. Prior to joining
Government he was Chairman and Chief Executive Officer of
American Standard, Inc. He is regarded as extremely intelligent
by Administration people who have worked with him. It might
also be useful if he maintained his position as Executive
Director of the Council on International Economic Policy.
That would demonstrate the high level of attention being given
international trade. It would, however, be necessary for
him to relinquish the post as Special Trade Representative.
Carl Gerstacker. 58. He is presently Chairman of the Board
of DOW Chemical Company. He has a long-standing personal
interest in U.S. export expansion. He is a member of the
International Advisory Committee of the Chase Manhattan
Bank and Chairman of the Export Expansion Council of the
U.S. Department of Commerce. He is intelligent and energetic.
His name has been suggested by John McCone and David Packard.
Robert S. Ingersoll. 60. Presently Deputy Secretary of State.
Ingersoll was, before joining the Government, Chairman,
President and Chief Executive Officer of Borg-Warner Corporation.
In Government, he served as Ambassador to Japan and Assistant
Secretary of State for East Asian and Pacific Affairs. He has
a good knowledge of Government and international commerce.
David Packard. 62. Former Deputy Secretary of Defense.
His experience in Washington, his role in Hewlitt Packard,
a high technology manufacturer, and his international trade
experience all give Packard an excellent background for this
post. Whether he would be willing to again make the financial
sacrifice, would have to be determined.
Arthur Taylor. President of CBS. Formerly an investment
banker. Very bright and very ambitious. Mid-40's.
- 12 -
Agriculture
This will be a tough job. Farm income is bound to decline.
There will be hot conflict between the Department's vocal constituents
urging higher prices and the nationwide desire for stable food prices.
The individual who heads the Department should have a strong personal
grounding in the Department's programs and mechanisms. He
almost must have a personal knowledge of how it works so that
he can see to it that they work in support of the Administration's
objectives. In short, he has to be able to run that Department.
If the Department is left to run itself, it will more than likely work
at odds with the Administration's objectives.
Some possible candidates:
William D. Knox. Mid-50's. Publisher of Hoard's Dairyman,
the most influential publication in the dairy industry. Knox
is extremely able and enjoys a strong reputation beyond
the dairy industry.
Glenn Pound. 60. Dean of the College of Agriculture,
University of Wisconsin. A strong Republican who has been
considered for the post before. Perhaps not strong enough.
Robert Ray. 46. Governor of Iowa. Bright lawyer with good
reputation. No particular background in agriculture.
Clayton Yeutter. 43. Presently Assistant Secretary of
Agriculture for Marketing and Consumer Services. A Ph. D.
in economy and a lawyer, Mr. Yeutter is considered very able.
Special Trade Representative- Council on International Economic Policy
Eberle is presently both Special Trade Representative and
Executive Director of CIEP. If Eberle did move to a cabinet post,
he could continue to handle CIEP. However, the heavy job of
preparing for and conducting future trade negotiations probably
should be given to someone new.
It might not be desirable to have a cabinet member also head
CIEP. There are real departmental jealousies which must be dealt
with by the CIEP Executive Director. In this case both the CIEP
and STR responsibilities could go to somebody new.
- 13 -
Alternatively the two jobs could be split up and given to two
individuals. This might be desirable in view of the heavy workload
attending a new round of trade negotiations.
The following might be considered as possibilities for either
or both of these posts. Of those mentioned earlier for the post
of Assistant to the President for Economic Affairs, there are the
following:
John Byrnes
Bob Ellsworth
William Leonhart
John Robson
Additional possibilities are:
John Coleman. Mid-40's. Until recently the President of the
Continental Illinois Bank holding company. It was apparently
not a friendly separation. Mr. Coleman is extremely intelligent
and considered very good at the "deal making" business. Most
of his early business career was spent with Kidder Peabody.
He served as Deputy Assistant Secretary of the Treasury for
International Monetary Affaris in the Johnson Administration.
Roderick Hills. 43. He is a partner in a law firm of his own
creation in Los Angeles. He has been active in Republican
affairs in California, and is a real "go getter. 11 He is currently
President of the Republic Corporation, which he has resuscitated,
and will be returning more completely to private practice. He
has a great deal of experience at international negotiation. His
wife is an Assistant Attorney General (Civil Division).
Richard Thomas. Mid-40's. Executive Vice President of the
First National Bank of Chicago. I believe he is presently
responsible for the bank holding company activities and the
international department. A Rhodes scholar and a tireless
worker. He has a kind of applied intelligence that makes him
very much a doer.
THE WHITE HOUSE
Sent
10/30/70
WASHINGTON
MEMORANDUM FOR THE PRESIDENT
FROM:
DONALD RUMSFELD
Subject:
OMB and Domestic Council Directorships
This memorandum summarizes briefly points made earlier
concerning these two posts. The lists appearing at Tab A (OMB)
and Tab B (Domestic Council) have been adjusted to reflect our
recent discussions.
Characteristics of Both Posts
Both posts are "staff" to you. They are not independent
decision-making positions. The individuals who hold them
must each have your strong, personal confidence.
Both posts involve the management of a decision process.
The conflicts that arise within these decision processes are
intense and therefore individuals of fairness, strength and
diplomacy are required. The individuals must be both
ramrodders and harmonizers.
Both posts should be low visibility. They are not spots for
major public spokesmen.
The two directors must be able to work together for the
subject matter they deal with is interrelated.
OMB - A list of possible candidates appears at Tab A.
The OMB jobs should be more budget related than in the
recent past. The "management" functions should receive
less emphasis.
There is an able group of professionals already at OMB; there-
fore, the Director's job is to lead them in the creation of
your budget.
2
The new Director should have government budget experience.
The new Director should have the breadth to understand both
the impact of the budget on the economy and the political/policy
ramifications of budget decisions.
If the new Director has a political identification, it should
be conservative.
Domestic Council - Possible candidates listed at Tab B
The Domestic Council concept should be continued. The
questions involved span so many departments that an "issue"
committee system with interdepartmental staff working groups
serves a real purpose.
The Domestic Council Director will be your lead staff in the
formation of your domestic program. Therefore, he should
have the background and ability to add, on your behalf, a real
dose of substantive innovation.
The Domestic Council Director and staff will be called on to
coordinate the handling of hot issues; therefore, they must
have political seasoning. But they must also realize that their
job is to coordinate the departments and not to usurp them.
The Domestic Council Director may also be responsible for
state and local government relations. If so, the Director
should have some working knowledge of the federal, state and
local relationship.
TAB A
Possible Candidates
OMB DIRECTOR
IT
Dean Burch
2.
John Byrnes
3.
Richard Dunham. Early 40's. Presently Budget Director
for the State of New York. Governor Rockefeller has
suggested him as a possibility for Domestic Council Director
but his background recommends him for this post as well.
He is very highly regarded in the professional Public
Administration fraternity. Bill Scranton believes him to be
not only good technically but also innovative.
4.
Norman Hurd. Early 60's. Presently Secretary to Governor
Malcomb Wilson. He served in this post with Nelson Rockefeller.
Prior to that, he was budget director for the State of New York
under both Rockefeller and Dewey. Among the professionals
in the budget business, he is regarded as highly intelligent
and vigorous. Governor Rockefeller thinks he would be a
good appointment.
5.
Harvey Kapnick. 49. Presently Chairman of Arthur Andersen
and Company. He is a very able accountant with a considerable
ability at managing professionals. However, he has had no
government experience.
6.
James Lynn. Early 40's. Secretary of Housing and Urban
Development. Jim is bright. Though he doesn't have the
budget background he knows a lot about being effective in
this kind of post.
7.
Vernon Orr. Mid-50's. Presently Director of Finance for
the State of California where he succeeded Cap Wineberger.
The name was suggested by Dave Packard and others but Orr
only gets rather a SO-SO response from the fraternity of
professional budget men. He does carry with him some of the
conservative flavor of the Reagan Administration.
Bealing
- 2 -
8.
Bill Seidman
9.
Arnold Weber. Early 40's. Dean of the Business School of
Carnegie Mellon Institute. He is an economist and mediator.
He has served as Assistant Secretary of Labor and Deputy
Director of OMB before becoming the first director of the
Cost of Living Council. Weber is tough and experienced.
Though a Democrat, he is not an idealogical liberal.
Rehardson
Keating
TAB B
Possible Candidates
DOMESTIC COUNCIL DIRECTOR
1.
Phil Areeda, Mid-40's. Deputy Counsel to the President.
Areeda has the breadth and experience to do a very good
job here.
2.
Richard Dunham. Early 40's. Discussed earlier as a possi-
bility for OMB. Governor Rockefeller suggested him for the
Domestic Council as a person who has an excellent policy
sense and a background in state government. He is reported by
Bill Scranton to be energetic and innovative.
3.
Jim Lynn. He is smart and seasoned. He would be very good
at handling hot issues. If combined with a strong academic like
James Q. Wilson (discussed below) as Deputy, it could work
well. However, the appearance of shifting personnel from
one post to another may not be desirable.
4.
John Robson. Early 40's. Robson is a partner in a large
Chicago law firm of Sidley and Austin, He is a Republican who
has served in the Johnson Administration as a budget bureau
consultant/White House staffer working on economic matters
and later as Under Secretary of Transportation. He is
remarkably able. He has an extraordinary ability to
coordinate people, a first rate mind and real political savvy.
He would do exceedingly well here.
5.
Larry Silberman. Late 30's. Deputy Attorney General.
Formerly Under Secretary and Solicitor of the Labor
Department. Much like Jim Lynn in that he is a bright
generalist. He is a ramrodder but there is the appearance
of shifting the old players around.
6.
Bill Scranton.
7.
Arnold Weber. Provost of Carnegie Mellon Institute. Discussed
earlier in connection with OMB. Arnie has a tough mind and
experience in the domestic area.
8.
James Q. Wilson. Harvard professor in mid 50Ls. Excellent
substantive reputation and some reputation as an organizer of
policy development. However, he does not have political
experience at handling hot issues.
Whelen
Kinstol
Walker
THE WHITE HOUSE
B.11W
3
a
WASHINGTON
November 5, 1974
MEMORANDUM FOR:
11/14/44
THE PRESIDENT
FROM:
ROY L. ASH
As we discussed last month, I would prefer to leave my present
position whenever you have a suitable replacement.
The qualifications for my successor, as I see them, are:
1. A political, economic and social program philosophy fully
consistent with the President's. OMB translates and amplifies many
Presidential decisions and positions into detailed directions and actions.
It must do so with absolute fidelity to Presidential intentions.
2. A commitment to Presidential service, not personal head-
lines. OMB has one constituent - and only one - and cannot be in
business for itself, internally or publicly.
3. A work approach based on thorough thinking and reasoned
judgment. Much of the work flow into the Executive Office of the Presi-
dent is advocacy; the "facts" and arguments are selected to sell. OMB
exists to assure thoroughness, soundness and balance are added into
the consideration process.
4. An ability to span a broad scope of work. The OMB role,
portrayed as "budgeting", can more descriptively be called program
oversight, or control. The departments administer hundreds of pro-
grams; OMB works with each, applying a Presidential perspective, to
program conception and design, legislation, funding, subsequent admini-
stration, and continual evaluation and improvement.
5. A strong managerial sense and experience. Closely related
to its program oversight role, OMB also is that part of the President's
staff which aids him in fulfilling his responsibility as manager of the
Executive Branch, one of the largest and most complex organizations in
the world. OMB works, day in and day out, with all department
-2-
executives, assuring responsiveness and conformity .with Presidential
goals, objectives and policies and assisting in achieving effectiveness,
efficiency and timeliness of results.
6. Knowledge of legislative processes and sensitivity to political
implications. While it the role of the departments, not OMB, to work
with the Hill on their programs. OMB is thoroughly involved in the flow
of legislation and especially must be sensitive to the political implications
for the President of all its recommendations and actions.
7. Economic and financial competence. While most of the OMB
functions are cross-government managerial and programmatic ones,
rather than purely "economic", as a key participant in fiscal policy
OMB has traditionally been a main contributor to economic policy formu-
lation and implementation.
My candidates for a successor are:
Dick Gerstenberg
Chairman, General Motors
Reg Jones
Chairman, General Electric
Thornton Bradshaw
Pres., Atlantic Richfield
Bob Mallott
Pres., FMC
George Weyerhauser
Pres., Weyerhauser Corp.
Reuben Mettler
Vice Chairman, TRW
Jim Binger
Chairman, Honeywell
Bill Miller
Pres., Textron
Jim Schlesinger
Secretary of Defense
If you wish, I will contact one or more of these men to establish their
possible interest. Each, I believe, could fulfill the potential of the job
I've characterized.
If you would desire OMB to perform differently, then I could suggest
others.
Mr. President, it is a privilege to serve you and your Administration.
If you desire, I would be quite willing to serve you in another capacity
after you have selected a successor for me in my present one.
THE WHITE HOUSE
WASHINGTON
November 7, 1974
MEMORANDUM
TO:
THE PRESIDENT
FROM:
Donald Rumsfeld
SUBJECT:
Meeting on Personnel
People who might be asked to attend:
Phil Buchen
Arthur Burns
John Byrnes
Douglas Dillon
Bob Griffin
Bryce Harlow
Bob Hartman
Mel Laird
Paul McCracken
Rog Morton
Williams Rogers
Chappy Rose
John Rhodes
Bill Scranton
George Shultz
Bill White
David Packard
John McLane
CRITERIAL AND POSSIBLE CANDIDATES
FOR HIGH LEVEL APPOINTMENTS
Below are some thought on the criteria that might be used in
discussing high level appointments.
General Criteria
We should seek people with stature and strong
personal reputations. The optics are important to
confidence, particularly when it must be quickly
attained.
New faces. It will be tempting but probably unwise
to simply play musical chairs with the same old
actors.
Within the Cabinet as a whole, it would be desirable
to have representation of various groups -- business,
blacks, women, southerners, conservatives, liberals,
Republicans and Democrats.
Sensitivity and Washington experience desired.
Economic Area
General Criteria
We need good people who work well together. There
is a lot of overlap and the actors here must function
smoothly as a team.
Each should have a technical competence in their
own area.
A strong personal reputation is a particularly
important requirement for candidates in this
area. Economic confidence can be helped by the
stature of the people named.
Treasury
Will be the public spokesman, therefore, should be
experienced in the public area.
Strong, personal reputation at home and abroad is
critical.
Incumbent: Bill Simon
Other Possibilities
John Byrnes
Aldwin W. Clausen
Gaylord Freeman
Gabriel Hauge
Melvin Laird
David Packard
Robert V. Roosa
William Scranton
Walter Wriston
Labor
Must have confidence of both business and labor.
Therefore, probably can't come from either.
Mediator or academic are possibilities.
Should have an interest in straightening out
bargaining structures.
Incumbent: Peter Brennan
Other Possibilities
William Usery
Commerce
Since the post does not carry demanding responsibilities there is
choice of purposes to be served in making this appointment.
They are:
Add a complimentary skill to the economic team.
If we have an expert in international money and banking
as Secretary of the Treasury then Commerce could be
headed by someone knowledgeable about the manufacture
and international trade of goods.
Add an individual representative of some special group.
Add an individual to the Cabinet who can do the political
work, like the Postmaster General position was used.
Incumbent: Fred Dent
Other Possibilities
John Byrnes
Catherine B. Cleary
William Coleman
Arthur Fletcher
Henry Ford
Carl Gerstacker
Dick Gerstenberg
Irwin Miller
RogersMorton
Ronald Reagan
Agriculture
Strong and politically important constituency. Declining
farm income and consumer pressure for food price
restraint combine to make this a very tough spot.
Candidate must be politically agile.
Departmental programs are complex and the candidate
must learn them and have the power to run them his
way.
Incumbent: Earl Butz
Other Possibilities
Dean Burch
Norbert Tieman
Robert Spitzer
Clayton Yeutter
Domestic Area
Justice
An individual with strong reputation for integrity and
legal ability.
An individual who does not have a political appearance
or aspirations but is politically sensitive.
Incumbent: William Saxbe
Other Possibilities
Edward Gignoux
Ed Levy
Elliot Richardson
Bill Rogers
Bill Scranton
HEW
Effective with the Congress.
Either the Secretary or the Under Secretary must be
an effective manager.
Incumbent:
Cap Weinberger
Other Possibilities
John Byrnes
Huston Flournoy
John Gardner
Edith Green
Mel Laird
Albert Quie
Ronald Reagan
Bill Scranton
HUD
Knowledgeable about housing construction and finance.
This will be a tough period and it might be helpful to
have somebody from the industry.
Alternatively the candidate might come from State or
local government.
Incumbent: James Lynn
Other Possibilities
John Gardner
Max Karl (President, Mortgage Guarantee
Insurance Company)
Sheldon Lubar (FHA Administrator)
Dick Ogilvie
Ronald Reagan
Elliot Richardson
James Rouse
Bill Ruckelshaus
DOT
Good manager.
Knowledgeable about transportation.
Incumbent:
Claude Brinegar
Other Possibilities
John Barnum
Ben Biagini (President of Southern Pacific Railroad)
William T. Coleman
Bill Cramer
Ben Heinamen (Former President of Northwestern
Railroad)
Dick Ogilvie
Larry Provo (President of Northwester n Railroad)
John Robson
Norbert Tieman
Interior
Traditionally a westerner.
Capable of running the energy effort.
Effective wi th Congress.
Incumbent: Rogers Morton
Other Possibilities
Dean Burch
Huston Flournoy
Stan Hathaway
Ronald Reagan
THE WHITE HOUSE
WASHINGTON
October 17, 1974
MEMORANDUM FOR:
DONALD RUMSFELD
FROM:
WILLIAM N. WALKER
Attached is a preliminary memorandum on possible candidates
for the OMB and Domestic Council Directorships.
If you agree with these (this) recommendation(s), we will staff
to the following:
X
The Vice President
Dean Burch
X
X
Robert Hartmann
Ken Cole
X
John Marsh
Fred De Baca
X
Philip Buchen
William Eberle
X
Bill Timmons
Stan Scott
X
Anne Armstrong
Brent Scowcroft
Roy Ash
William Seidman
Bill Baroody
Mary Louise Smith (RNC)
Agree
Disagree
See me
Other Instructions
THE WHITE HOUSE
WASHINGTON
MEMORANDUM FOR THE PRESIDENT
FROM:
DONALD RUMSFELD
Subject:
The OMB and Domestic Council Directorships
These two spots should be considered together. They are your
principal staff for developing and implementing all domestic policy.
They each manage on your behalf a process by which this is done.
Both spots require individuals of strength and diplomacy. Both
handle disagreements between departmental desires and administration
needs. The disagreements get hot. Both must assure that the decisions
brought to you are fairly put, that the options have been carefully
thought out and the relevent facts accurately presented.
In my view, these should both be staff positions without cabinet
rank. But as staff managing decision processes on your behalf, they
have great power. It is vital that they are not seen as willful, indepen-
dent decision makers. They should be facilitators of policy and its
implementation. They should not be autonomous policy czars. Nor
should they be highly visible spokesmen. Use of these people to
explain administration policy, either to the press or before Congressional
hearings, should be minimized.
While they have much in common, both posts are unique and
require men of separate experience. There follows some brief
comments on each post and some possible candidates.
- 2 -
OMB and its Director
OMB remains a reservoir of very able career professionals.
It has a long tradition of dedicated service to the President in the
formation and administration of the budget. In recent times, OMB
has been called on to get into matters far afield from the budget.
In my judgment that should be reversed. The management business
has been overblown. The principal focus of OMB and its Director
should be the budget.
Most important, whoever takes over OMB must have your
strong personal confidence. You could be spending a lot of time
with him. He will have the aide of a very capable man in Paul O'Neil,
the nominee for Deputy. But still the new Director, particularly if
he takes over in these last days of the budget cycle, would ideally
have a personal background in government budgeting. If he has that,
he can get the best from OMB in short order. With that, he can be
most effective in putting your imprint on this, your first budget.
The OMB Director should have the ability to understand the
budget's economic impact and its relationship to other economic
policy. He should be able to contribute in such discussions. But
this is not the place for a macroeconomist. This is much more a
post for a first rate accountant with a capacity for vision. If the
candidate has a political flavor other than "professional, " it is
probably wise that it be conservative.
You may wish to consider the following names:
1.
Frank Carlucci. Mid-40's. Presently Under Secretary
of HEW. Prior to that he was Deputy OMB Director. He
also served as head of OEO. A career foreign service
officer who is very able. He has been through a lot of
"fires" and handled them all exceedingly well. He has
the OMB background and enjoys strong personal support
on the hill. He would, however, prefer to return to a
foreign post.
- 3 -
2. Norman Hurd. Early 60's. Presently Secretary to Governor
Malcomb Wilson. He served in this post with Nelson Rockefeller.
Prior to that, he was budget director for the State of New York
under both Rockefeller and Dewey. Among the professionals
in the budget business, he is regarded as highly intelligent
hard
and vigorous. The fact that he comes from New York and is
so personally close to Rockefeller deserves some considera-
tion.
3.
Harvey Kapnick. 49. Presently Chairman of Arthur
Andersen and Co. He is a very able accountant with a
considerable ability at managing professionals. However, he
has had no government experience.
4. John McCarter. 38. Presently Senior Vice President of
De Kalb Economics. Prior to that, he was budget director
of the State of Illinois under Governor Ogilive. He was
a White House Fellow who served as assistant to Charles
Schultz when he was the budget director. He is reported
to be very bright with an excellent knowledge of government
budgeting.
5. Wayne McGowan. Mid-40's. He is presently Deputy
Secretary of Administration for the State of Wisconsin. He
was Secretary of Administration under Republican governor
Warren Knowles. Prior to that, he was budget director.
He instituted program budgeting in the State. I believe
that lately he has spent a good deal of time consulting with
OMB on the relationship between Federal and state budgeting
systems. He is regarded as perhaps one of the brightest
younger men in the public administration fraternity both
for his technical knowledge and for his effectiveness with
political leaders. His political associations have been
Republican.
6. Paul O'Neil. Early 40's. Presently an Associate Director
frogger
of OMB and nominee for Deputy Director. He is extremely
bright. A thorough professional who has functioned well with
three different OMB directors. I believe he enjoys a fairly
good reception on the hill.
- 4 -
7. Vernon Orr. Mid-50's. Presently Director of Finance
for the State of California where he succeeded Cap Wineberger.
The name was suggested by Dave Packard and others but
Orr only gets rather a SO-SO response from the fraternity
of professional budget men. He does carry with him some
of the conservative flavor of the Reagan administration.
8.
David Packard. Former Deputy Secretary of Defense.
A terrifically able person who could more than handle the
job if he would take it. He might also do well at the
Domestic Council.
9. John Robson. Early 40's. Robson is a partner in the large
Chicago law firm of Sidley and Austin. He is a Republican
who has served in the Johnson Administration as a budget
food
bureau consultant/White House staffer working on economic
matters and later as Under Secretary of Transportation.
He is remarkably able. He has an extraordinary ability to
coordinate people, a first rate mind and real political savvy.
He would also do exceedingly well as Director of the
Domestic Council.
10. Bill Seidman.
- 5 -
The Domestic Council
The Domestic Council was an idea of the Ash Council. To some
extent it was an expansion and formalization of what, in fact, had
gone on in earlier administrations. Its creation justified an expanded
budget and staff. The Council as a whole was never much more than
ceremonial. The work was to be done by subcommittees organized
around issues.
Recognizing that domestic issues frequently span several depart-
ments, membership on subcommittees consisted of the most directly
affected cabinet secretaries, one of whom served as Chairman. Staff
work would be led by a permanent Domestic Council staff member.
He would run a working group made up of representatives of each of
the cabinet secretaries on the subcommittee. OMB was also frequently
represented simply because it had a reservoir of considerable knowledge.
Domestic Council staff members were also called on to coordinate
the handling of various hot issues or "fires. 11 The staff grew to some
35 professionals and, at its high point, did more directing of responses
than coordinating. It is fair to say that on most hot matters the
problems were lifted out of the departments and brought to the White
House for handling.
The basic idea and procedure of the Domestic Council has merit.
It is probably what should occur even if there weren't a legal entity called
the Domestic Council. But, as always, it's the people who make an
entity one thing or another.
The Director of the Domestic Council is the place for your
principal domestic policy assistant. Again, he should be a facilitator
of decision making, not the decision maker. He should have your
complete confidence but should not be the domestic president. He
will be an informed aide who can't avoid being thrust in the middle of
various "fires. 11 But his basic method should be to help the cabinet
to higher effectiveness in handling such "fires.' " It should not be to
usurp them.
- 6 -
Two questions must be considered in filling this post. First,
what should be done with the state and local government liaison function?
For want of a better idea, it was folded into the Domestic Council staff
responsibility when Agnew left office. However, I don't believe it was
a bad idea for the problems being handled by the Domestic Council
and its Director frequently involve state and local government. I
am sure the governors and mayors would like to have an independent
White House assistant to handle their problems. But this can cause
a real confusion and wheel spinning. If the function continues in
the Domestic Council, then it could affect the choice of a Director.
Second is the question of Rockefeller's participation in domestic
policy. He is sure to have a strong interest in the construction of
your domestic program. If he is to have some responsibility in
that connection, then you may want him to have a say in the selection
of the Domestic Council Director and staff. While the Director and
staff is to be primarily your staff, I think it desirable that the appoint-
ments be made in consultation with Rockefeller.
Individuals considered for this post should have considerable
political seasoning especially if the post will continue to have the state
and local government liaison function. Such experience can be gained
as an elected public official, as aide to one, or in an executive branch
post involving considerable heat. The individuals considered should
each ideally have some background in dealing with the substance of
one or another area of domestic policy; housing, labor, education,
transportation.
Even though he is to facilitate policy making instead of dominating
it, he must have a lot of creativity and drive.
He should be a good organizer of men and ideas. The job takes
a tough mind to make headway in subject areas that are frequently
complicated substantively and politically.
Perhaps you would want to consider the following names:
1. John Robson. Discussed earlier as a possibility for OMB.
He is perhaps more suited for this post.
2.
David Packard. Also probably more suited for this post.
- 7 -
3. Elliot Richardson. There is no question about his ability
or experience. He might be interested in the post but the
appointment could anger conservatives.
4.
Bill Seidman.
5.
James Q. Wilson. Harvard professor in mid-40's.
Excellent substantive reputation and some reputation as
an organizer of policy development. However, he does not
have political experience at "fire" fighting.
6.
Jim Lynn. He is smart and seasoned. He would be very
good at "fire" fighting. If combined with a strong academic
like James Q. Wilson as Deputy, it could work well.
However, the appearance of shifting personnel from one
post to another may not be desirable.
hold
November 20, 1974
MEMORANDUM FOR THE PRESIDENT
THROUGH:
RICHARD B. CHENEY
FROM:
WILLIAM N. WALKER all
SUBJECT:
Office of Management and Budget
and Domestic Council
The principal candidates for the Office of Management and
Budget spot (some of which have been discussed in previous
memorandums to you) are as follows:
1. John Byrnes.
2. Philip Areeda. He has expressed an interest in
this position.
3. Vernon Orr. He is Director of Finance for the
State of California. You have seen him.
4. Harvey Kapnick. 49. Presently Chairman of Arthur
Anderson and Company. Reputed be a superb accountant with
good management skills, but no previous government exper-
ience. He is located in Chicago.
5. Richard Dunham. Early 40's. Presently Budget
Director for the State of New York. Governor Rockefeller
strongly recommends him for either the Domestic Council or
the Office of Management and Budget. He is highly regarded
by the public administration fraternity.
6. William Keating. His only budget experience
derives from his service on the Cincinnati City Council
where he was a member in charge of the City's budget.
FORD
- 2 -
7. Roderick Hills. Early 40's. He was one of those
proposed for the Federal Energy Administration. He is
Chairman of the Republic Corporation and has had a highly
successful practice as a lawyer in California. He has had
extensive financial experience in his role as Chairman of
the Republic Corporation over the past three years, though
he has no prior government experience or exposure to gov-
ernmental budget matters. He is well thought of by John
Dunlop, Phil Areeda, and Larry Silberman. He has been
active politically in California, though principally for the
more liberal wing of the Republican Party (Kuchel and
Flournoy in particular). We do not have a reading on how he
is viewed by the Reagan Administration.
8. Ralph Leach. 58. Chairman of the Executive
Committee of Morgan Guaranty Trust Company in New York. He
was suggested by Chairman Burns and Secretary Simon. He
served as Chief, Government Finance Section, Federal Reserve
Board from 1950 to 1953. He has held successively more
responsible positions at the Morgan Guaranty since then. I
am asking him to come in and see me.
9. Arnold Weber. Early 40's. Democrat. Weber is
Dean of the Business School of Carnegie Mellon Institute.
He is an economist and labor mediator. He served as As-
sistant Secretary of Labor and Deputy Director of the Office
of Management and Budget before becoming the first Director
of the Cost of Living Council. He also served as a member
of the Pay Board and was often at odds with the labor
members.
For the Domestic Council the candidates are generally the
same as for the Office of Management and Budget with the
addition of the following:
John Robson. Early 40's. He is a partner in the large
Chicago law firm of Sidley and Austin. He is a Republican
who served in the Johnson Administration as a Budget Bureau
Consultant/White House Staffer working on economic matters
and later as the first General Counsel and then Under
Secretary of the Department of Transportation. He is from
Chicago and, as you know, a life long friend of Don Rumsfeld.
If Robson were selected for the Domestic Council, he would
probably be viewed as liberal because of his service in the
Johnson Administration. The Office of Management and Budget
- 3 -
choice should therefore be more conservative to achieve
balance. That would seem to eliminate the following: Phil
Areeda (though hardly a liberal, his Harvard background
would not be seen as conservative), Harvey Kapnick (No
liberal, but he's from Chicago, like Robson), Richard Dunham
(because he's a Rockefeller man) and Arnold Weber (who is a
Democrat).
That would leave: John Byrnes, Vernon Orr, William Keating
(though he, too, might be viewed as liberal; he's certainly
not a recognized conservative), Roderick Hills (he may be
objectionable to the Reagan camp) and Ralph Leach.
Hills and Keating, though very attractive, have weak cre-
dentials for the Office of Management and Budget. Orr may
not have sufficient breadth and sophistication for the job.
That would leave Byrnes and Leach.
Given the paucity of choices, the following might warrant
passing consideration:
Secretary Schlesinger. His background in the Office of
Management and Budget would ideally equip him for the post.
But that then leaves a hole at Defense.
Catherine Cleary. 58. President, First Wisconsin
Trust Company, the largest bank in Milwaukee. She served as
an Assistant Secretary of the Treasury during part of the
Eisenhower Administration and has been a successful busi-
nesswoman. She is on the General Motors Board of Directors
and Dick Gerstenberg is very high on her as an alert, sub-
stantive, "Damn high grade" person. Don Murdoch is to see
her later this week.
Bob Ellsworth. Supposedly restless at Defense.
However, he does not have strong budget credentials.
Rocco Siciliano. Former Commerce Undersecretary. Now
running a big title insurance company in Los Angeles. He is
not a new face.
David Maxwell. Former Department of Housing and Urban
Development General Counsel and Insurance Commissioner of
Pennsylvania. Now with Siciliano in the title insurance
business. Also not a new face.