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    "title": "1975/05/07 - Cabinet",
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    "ocrText": "The original documents are located in Box 45, folder \"1975/05/07 - Cabinet\" of the James\nM. Cannon Files at the Gerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nDigitized from Box 45 of the James M. Cannon Files at the Gerald R. Ford Presidential Library\n6:30 PM - Cabinet Meeting aboard\nSequois\nWednesday, May 7, 1975\nApril 25, 1975\nDear Mr. Secretary:\nAt the last Cabinet meeting the President asked\nthe Cabinet members to discuss their position on\nconsumer affairs with Virginia Knauer, and to\nmeet with the appropriate Committee Chairmen,\nranking members and staff to discuss problems\nwith the proposed Consumer Advocacy Agency.\nI would appreciate it if you would let me know by\nWednesday, April 30th, what steps have been\ntaken to meet the President's request.\nSincerely,\nJames E. Connor\nSecretary to the Cabinet\nThe Henorable William E. Simon\nSecretary of the Treasury\nDepartment of the Treasury\nWashington, D. C. 20220\nIdentical letter sent to all Cabinet Officers\nLIBRARY GERALD ? FORD\nTHE WHITE HOUSE\nWASHINGTON\nMay 2, 1975\nMEMORANDUM FOR:\nJIM CANNON\nFROM:\nJERRY H. M JONE\nAt a recent Cabinet meeting the suggestion was made that each of\nthe Cabinet Officers should contact the Chairman and ranking member\nof their authorizing committee to point out the difficulties that would\nbe created for their agencies in the event the Consumer Protection\nAgency is enacted into law.\nThe basic thesis for doing this is that the Consumer Protection Agency\nwould have a major say in thwarting the original intent of much of the\nlegislation under which those agencies act. The legislation now\npending before the Congress would cut into the jurisdictional responsibilities\nof other committees in the Congress.\nWould you please contact each agency head asking them what they\nhave done to make their views known to their committee chairman and\nranking member on this legislation. Please submit a report to the\nPresident on these contacts.\nThank you.\nBERALD FORD\nMay 5, 1975\nMEMORANDUM FOR:\nJIM CANNON\nFROM:\nJIM CONNOR\nSUBJECT:\nCABINET RESPONSES TO FOLLOW-UP\nON THE CONSUMER ADVOCACY AGENCY\nDISCUSSION\nI queried all of the Cabinet officers on the extent to which they\nhad followed up on the President's request that they meet with\nVirginia Knauer to discuss their position on communer affairs and\nto meet with appropriate Committee chairmen, ranking members\nand staff to discuss problems with the proposed Consumer Advocacy\nAgency. The responses have not been particularly encouraging.\nThe following Cabinet members have scheduled appointments with\nVirginia Knauer:\nSecretaryButz (May 7th)\nSecretary Morton (May 27th)\nSecretary Dunlop (May 22)\nSecretary Schlesinger (meeting date not yet specified)\nA.G. Levi (meeting date not yet specified)\nSecretary Coleman (May 2)\nSecretary Simon (May 16)\nState Department has no plans for a meeting and HUD has not responded.\n(There be at present no Secretary of the Interior.)\nRe meetings with the Appropriate Congressional Committees, AG Levi\nhas had conversation with Congressional people and meetings are\nscheduled by HEW (no specific date) and DOL (no specific date) 8 the\nother departments have not indicated plans for conversations with the\nCongressional members.\nFORD & LIBRARI\nTHE WHITE HOUSE\nWASHINGTON\nMay 5, 1975\nMEMORANDUM FOR :\nPAM NEEDHAM\nFROM :\nJIM CAVANAUGH\nThe attached is forwarded to you for appropriate\nhandling.\nAttachment- VK Adm. Consumer Representation Plan\nread. 5/6/75\nFORD : LIBRARY GERALD\nOF THE\nEXECUTIVE OFFICE OF THE PRESIDENT\nTHE\nOFFICE OF MANAGEMENT AND BUDGET\nDate: 5-5\nTO: Pat\nFROM:\nJames J. Jura\nACTION:\nApproval/Signature\nComment\nInformation\nFile\nDraft response for\nJames T. Lynn's signature\nFor your handling\nREMARKS:\nMr. Lynn ashid that to\nm. Cannot ASAP.\nthis be sent\n03113338 5/= lid UNITED :2 THE 4 ? OF 1513 2:00\nTHE WHITE HOUSEWED\nWASHINGTON MEY 2 5 58 OFFICE PH 275\nMay 2,\n1/10\nMEMORANDUM FOR: William J. Baroody, Jr. / James T. Lynn\nFROM:\nVirginia H Knzuer/S. John Byington YR\nSUBJECT:\nFord's Administration Consumer\nRepresentation Plan\nAttached is a copy of the proposed synopsis of the plan as\nwell as timetables relating to:\nQuestionnaire and Departmental Plan\nPublic Information Announcements\nVK's Monthly Reports to the President\nWe would appreciate your reaction to both the concept and\ngeneral timing. Look forward to working with you on this most\nexciting endeavor.\nAttachments\nFORD & GERALD LIBRARY\n133.1\nMay 2, 1975\nProposed Synopsis of the\nFord Administration's\nConsumer Representation Plan\nI.\nVK in cooperation with Baroody, Lynn and Cannon will:\nDevelop in-depth questionnaire on public participation\nand consumer representation within each department's\nor agency's decision-making process.\nDistribute and explain at cabinet level Domestic Council\nmeeting involving the President, who will also use it\nwith the independent regulatory agencies.\nCollect and analyze the data publishing a summary of\nthe results. This data would be the primary basis for\nindividual meetings to discuss specific recommendations\nfor inclusion in a Departmental Consumer Representation\nPlan, which would be submitted to the President through\nVK by the end of September 1975.\nII.\nDuring this five month period Interim Consumer Initiatives will\nbe undertaken and announced.\nIII.\nEach Executive Branch department or agency head will be\npersonally responsible for:\nThe completion of the questionnaire\nParticipation in the individual meetings and\nDevelopment of the Departmental Consumer Representation\nPlan\nIV.\nEach Departmental Plan will be published and will serve as the\nbasis for a Presidential Management Objective within each\ndepartment and agency.\nMay 2, 1975\nProposed Timetable for\nQuestionnaire and Departmental Plan\nTues. 5/6\nDraft of Timetable and Questionnaire to Lynn and\nBaroody\nTues. 5/13\nOMB Approved Draft circulated for comment\nTues. 5/20\nTimetable and Questionnaire final approval\nTues. 5/27\nDomestic Council Meeting with President and\nExecutive Branch Agency Heads to review\nTimetable, Questionnaire and Procedure\nThurs. 5/29\nIndependent Regulatory Presidential Meeting\nTues. 6/17\nReturn of all Questionnaires to VK\nTues. 7/1\nVK Submits to President and Publishes Summary\nof data collected\nTues. 7/8\nBegin individual meetings with department and\nagency heads after follow-up Domestic Council\nmeeting\nTues. 9/2\nConclude all major meetings and finalize work on\nDepartmental Plans\nTues. 9/23\nSubmit to President through VK the individual\nDepartmental Plans\nThurs. 9/25\nPublish Departmental Plans\nTues. 10/7\nDomestic Council meeting on implementation of\nDepartmental Plans\nTues. 10/14\nBegin Second National Conference of State and\nLocal Consumer Office Administrators\nThurs. 10/16\nPublish Second Edition of Guide to Federal\nConsumer Services\nMay 2, 1975\nProposed\nPublic Information Timetable\nWeek of\nAction Planned for Announcement\n5/5\nPresidential meeting with Congressional Leader-\nship asking postponement of action on S. 200 for\nbalance of this session only--to give him a chance\nto really try to make government more open and\nresponsive to the public in general and consumers\nin particular\n5/12\nLynn meeting with Consumer Leaders (following\nPresident's Congressional Leadership meeting)\nto explain effort and be responsive to questions\n5/19\nGreiner and Dawson meet with PIO people and\noutline plan. They will provide announcement\nformat and help in identification of substantive\ninterim consumer initiatives\n5/26\nDomestic Council and Independent Regulatory Agency\nMeetings involving President and Heads\n6/2-9-16-23\nSeries of Interim Consumer Initiative Announce-\nments from various Departments and Agencies\n6/30\nPublish summary of questionnaire data collected\n7/7\nFollow-up Domestic Council Meeting to discuss\ndata collected and forthcoming individual meetings\nwith VK\n7/14-21-28\nContinuation of Interim Consumer Initiative\n8/4-11-18-25\nannouncement\n9/1-8-15\n9/22\nPublication of Departmental Plans\n9/29 & 10/6\nSeries of briefings on Departmental Plans and\nDomestic Council meeting on implementation\n10/13\nSecond National Conference of State & Local\nConsumer Office Administrators and Publication\nof Second Edition of \"Guide to Federal Consumer\nServices\"\nMay 2, 1975\nProposed Timetable\nVK's Monthly Reports to the President\nVK will submit to President Ford a monthly report on activities and\nresults relevant to Presidential initiative. Each report will be\nsubmitted within the first 10 days of the next month with copies to\nLynn, Cannon and Baroody as well as to each of the Department and\nagency heads.\nMonth\nPrimary Thrust\nApril\nTARP Study\nMay\nFord Consumer Plan including timetable\nand questionnaire plus Domestic Council\nand Independent Agency meeting\nJune\nSummary Results of Questionnaire and\nInterim Consumer Initiatives\nJuly\nProgress of Individual Meetings and\nadditional Interim Consumer Initiative\nAugust\nWrapup of Individual Meetings and\nadditional Interim Consumer Initiatives\nSeptember\nDepartmental Consumer Plans\nTHE WHITE HOUSE\nWASHINGTON\nCabinet Meeting on board the Sequoia, May 7\nNote:\nThe President is expected to arrive\nabout 6:20 p.m. - it is requested that\nguests arrive between 6:00 and 6:15 p.m. I\nso that they will be on board prior to\nthe President's arrival. Parking is\navailable inside the secure compound area\nfor limousines and other vehicles. Water\ntransportation will be available for any\nlate arrivals and for anyone desiring to depart\nearly.\nCocktails and a buffet dinner will be served\nprior to the discussion of the agenda items.\nJames E. Connor\nSecretary to the Cabinet\nattachment: map\nEXIT FROM THE SOUTHEAST FREEWAY (I-95) AT\n6TH STREET, S.E.; TURN RIGHT ON 7TH STREET\nLEFT ON M STREET, AND ENTER THE NAVY YD\nTHROUGH THE 8TH ST GATE. ALTERNATIVELY\nTURN RIGHT ON 8TH ST AFTER EXITING FROM\nTHE FREEWAY, LEFT ON M STREET AND INTO\nTHE 9TH ST GATE. IF YOU ARE ENTERING\nTHE NAVY YD BETWEEN THE HOURS OF 4:00 PM\nCapitol\nAND 5:30 PM, THE 8TH AND 9TH ST GATES\nARE CLOSED. DURING THIS PERIOD, THE\nYARD MUST BE ENTERED THROUGH THE N STREET\nLibrary of\nGATE, WHICH IS LOCATED AT THE JUNCTION\nOF 11TH AND N STREETS, S.E.\nSEQUOIA IS BERTHED NEXT TO PIER ONE\nCongress\nWITHIN THE NAVAL ADMINISTRATIVE UNIT\nCOMPOUND. SECURE PARKING IS AVAILABLE\nIndependence\nAvenue\nFOR FURTHER INFORMATION, PLEASE CALL\nCOMMANDING OFFICER, NAVAL ADMINISTRATIVE\nUNIT, 433-3673/4.\nNew\n/south\nauehue\nJersey\n3rd.\n95\nCapitol\nAvenue\nSoutheast\n100MS 1/78\n6th. Street\n11th\nStreet\nexit\nStreet\nFreenday\nStreet\n9th street\nMarine\nGate\nM\nStreet\nGate\n8\n#\nNavy Washington Yard\nN Street\nGate'\n-\nSequoia\nPark\nAnacostia River\n295\nN\nW\nE\nGood Hope Rd. Hope\nS\nGPO 926-765\nButy\nur Delivery\ntabled\n[ca. 5/7/75\n+ Doll\nCB\nAGRICULTURE\n700 regulatory actions, proceedings\n& decisions\nCommodity Credit\nPoultry Credit\nPest Control\nCOMMERCE form Tabor\nPatent Office\n967-5869\nResearch by the National Bureau of Standards\ntaken w/85% of Suite numbers\nJUSTICE\nAnti-Trust\nEntluer\nLABOR dat w/ Keen\nstuff-\nHusna\n)\nstorm been\npuched to\nArk that\ndoutso widiams\nLabor Standards\nEqual Pay will\nit be\nDevelop - will call outs.\nupen to\nJudician\nTREASURY Sunior\nIRS & Customs\nwt\nTRANSPORTATION\nAutomobile Safety\nnet vas muke call\nAdministrative burden hurt the consumer\nHUD\nPrevent HUD from getting confidential\nfinancial information from industry\n- Career\nHEW\nEPA\nHughes\nCould possibly effect\nINTERIOR\nmajor departmental action\nevery Pabli welfare\nr\nCoult\nthear for\nTootcart\nwas\nPaull\nGERALD FORD ELBRARA\nAGRICULTURE\n--- In Agriculture, the agency for Consumer\nAdvocacy could have an impact on over\n700 departmental regulatory action pro-\nceedings and decisions - such as\n1. Commodity credit decisions\n2. Forrest services - timber sales\n3. Poultry inspection\n4. Pest control programs\n5. Plant control programs\nCOMMERCE\n-- Such an advocate could effect - Patent\nOffice proceedings\n1. Tariff decisions that effect trade\n2. Research by the National Bureau of Standards\nEPA\nFor EPA the advocate could have an impact\non virtually every EPA activity. Russell Train\nadvises us it would be difficult to find any\nEPA action which would not be subject to such\nan advocate.\nGERALD FORD LIBRARY\n2\nHEW\n--For HEW the advocate would be taking\npart in every health related decision\nand perhaps every other major action the\nDepartment takes.\nHUD\nFor HUD there is a concern the advocate\ncould be involved and form informal\nconstituent industry groups and in effect\nperhaps prevent HUD from having the financial\nand other information from industry which\nthey need to conduct the Department's business.\nINTERIOR\n--There is concern that the advocate would be\na powerful special interest that could inter-\nvene in departmental activities.\nJUSTICE\nThe Consumer Advocate could participate in\ndecisions by the anti-trust division on\nwhether or not to bring anti-trust action.\nLABOR\n--The advocate would be a new Party enforcement\nactivity for labor standards. Equal pay and\nother enforcement decisions.\nFORD is LIBRAR, 0.18839\n3\nTRANSPORTATION\nSecretary Coleman points out that the\nadvocate could have a serious effect on\nautomobile safety and could impose an\nadministrative burden that might actually\nharm the consumer.\nTREASURY\nThe advocate could impose a tremendous\nburden such as intervening in IRS and\nCustoms' decisions.\nGERALD R. FORD\nTHE WHITE HOUSE\nwASHINGTON\nMay 2, 1975\nMEMORANDUM FOR:\nJIM CANNON\nFROM:\nJERRY H. off\nAt a recent Cabinet meeting the suggestion was made that each of\nthe Cabinet Officers should contact the Chairman and ranking member\nof their authorizing committee to point out the difficulties that would\nbe created for their agencies in the event the Consumer Protection\nAgency is enacted into law.\nThe basic thesis for doing this is that the Consumer Protection Agency\nwould have a major say in thwarting the original intent of much of the\nlegislation under which those agencies act. The legislation now\npending before the Congress would cut into the jurisdictional responsibilities\nof other committees in the Congress.\nWould you please contact each agency head asking them what they\nhave done to make their views known to their committee chairman and\nranking member on this legislation. Please submit a report to the\nPresident on these contacts.\nThank you.\n- Not yet done anything talled to Cougan\nAG. - Descries us us sen HRUSICA Sorthand + urp HOUSEU\ncupuyes Tyler m ubjution\nJohn Develop - Man T & n rut anilus as ~ constitute. of 4/30\nwas - Brui wake special efforts -\n1\nGERALD FORD LIBRARY\nButs - No keep one on case\n32UOH ЭТӀНИ\nWraten\nState arer - is How\nMONNAD MI No call &\n-\n005 HOD - THREE No\n10 dos obsm BSW notteeggue adt galfoom tenids) taboot AJA\nredmem bloow nolios gablast Them bas namiladO two theye odi teloq edd jos Sunon ni we selone bluode than smollilo no Tol on to beis consumirms\nA noitostos of edi tadi el aldt gniob not sleeds oleed edT\nodd 10 doum to instal Isnigito odt ghitzewdt at YS8 TOLSON $ evad bloow\nwon neitslsigel adT .Jos selongs seods daidw rebau noitsleigel\nedit otal tuo bloow adt stoled gaibneq\nsdt al asstimmos Todto to\nyedi tedw modi gaides band yonega does 1083000 easelq way bluoW\nbas namisdo settimmes visdt of award ewsiv visds exam of snob oved\nsit of aget 8 thridue 986919 sidt no redement gaidner\nseedt no insbiser9\n.DOV >lassif\nmyval of subst was - yourder?\nworkship + ma w nept\n1 w mund, -\ngoes M yumpu\nFORD is LIBRARY GERALD\n,Toph loings work ind - grow\n05/11 ~ The Pan A wh , galwo mob\nSo musing N P\nMr. James Cannon\nTHE WHITE HOUSE\nWASHINGTON\nMay 6, 1975\nMEMORANDUM FOR\nTHE CABINET\nSUBJECT:\nAgenda for Meeting Wednesday, May 7, 1975\n6:30 P.M. on board the Sequoia\nThe President has approved the following agenda for the Cabinet\nMeeting on May 7th.\nIntroduction\nThe President\nDiscussion of Congressional\nThe President, Mr. Marsh\nRelations (1 hour)\nand Members of the Cabinet\nVietnamese Refugees\nSecretary Schlesinger on the\n(10 minutes)\npresent status of evacuees,\nMr. Friedersdorf on Congressional\nattitudes, and\nThe President\nConsumer Advocacy Agency\nMr. Cannon\n(10 minutes)\nCrime Message\nThe President\n(10 minutes)\nStatus of the Energy Program\nMr. Zarb\n(10 minutes)\nWater Quality Programs\nMr. Train\n(10 minutes)\nJone\nSECRETARY TO THE CABINET\nmr. Cannou\n[ca. 5/7/75\nTHE WHITE HOUSE\nWASHINGTON\nMEMORANDUM FOR:\nBILL SEIDMAN\nFROM:\nROD HILLS\nSUBJECT:\nMeeting with Independent Regulatory\nCommissions\nAttached is the decision memo for the President on the meeting with\nthe Independent Regulatory Commissions and key Members of\nCongress and the Executive.\nWe have included suggested Congressional participants and an agenda\nfor the suggested format of the session. Also included are draft\nremarks which the President might make. These will obviously need\nto be polished depending on the decisions concerning the format and\nagenda.\nMax Friedersdorf, Jim Cannon, and I will plan to check out the\nPresident's preliminary decision with the Hill leadership and key\ncommittee Chairmen. If we get a strong reaction from them, we\nmight need to suggest modifications for the format or substance later\non.\nAttachments\nTHE WHITE HOUSE\nWASHINGTON\nMEMORANDUM FOR:\nTHE PRESIDENT\nFROM:\nJIM CANNON\nROD HILLS\nMAX FRIEDERSDORF\nJIM LYNN\nSUBJECT:\nMeeting with the Independent\nRegulatory Commissions and Con-\ngressional Representatives\nIn your speech to the Chamber of Commerce on April 28,\nyou stated that you would convene a meeting with all of\nthe Commissioners of the ten major independent regulatory\nagencies and key Congressional and Administration repre-\nsentatives to discuss the need to foster greater com-\npetition in the public interest and to consider the\ninflationary effects of proposed new regulations. Because\nof the unique nature of the regulatory agencies, it is\nimportant that Congress be given a role in helping to set\nup and participate in the meeting.\nThe discussion should be keyed to eliciting a voluntary\neffort from the regulatory Commissions to better evaluate\nand understand the economic impact of proposed regulations,\nto make improvements in consumer services, and to assure\nfair and expeditious hearings on regulatory matters. In\nlight of the above, the format of the meeting will play\nan important role in its success.\nAttached for your information are a list of the Independent\nRegulatory Commissioners (Tab A) and a list of Congres-\nsional Committee and Subcommittee Chairmen and ranking\nminority members with regulatory oversight responsibilities\n(Tab B). Letters of invitation are now being prepared\nwhich will go out over your signature once the date and\nformat have been decided.\n2\nOptions\nTwo basic options are available for the meeting format:\n1. Address the assembled Commissioners and Con-\ngressmen in the East Room, and provide time\nafterward for back-up speeches by the Joint\nLeadership or their representatives. You\ncould then ask for written responses and sug-\ngestions from the agencies. This agenda could\nbe kept simple and your participation limited\nto the delivery of prepared remarks.\nPro: This format would get your message\nacross effectively in a controlled\nformat. It would not require much\nof your time.\nCon:\nIt might be resented as heavy handed\nby the Congress and the Commissioners.\nIt would not be conducive to encouraging\na voluntary regulatory reform effort,\nand it would not permit discussion and\ninterchange.\n2. Use the same format as the \"Economists\" pre-summit\nmeeting held in the East Room last September.\nThis would provide a seat at the table for the ten\nChairmen of the regulatory commissions and selected\nCongressional and Administration spokesmen. The\nother Congressmen and Commissioners would be seated\nin the same room, but away from the table. You\nwould open the discussion, which would be followed\nby remarks from preselected Congressmen and Com-\nmission Chairmen. An hour would then be allotted\nfor an open discussion between the participants,\nbut we feel that your presence throughout the\nentire session would help to promote the most\ncooperative interchange of ideas. A proposed\nagenda for this type of session is attached at Tab\nC, and draft remarks for your opening are included\nat Tab D.\nPro: This approach provides the opportunity\nfor the most open and potentially\nfruitful discussion and the exchange of\nviews. It could be orchestrated to allow\nyou some flexibility in the amount of\ntime you wished to devote to the meeting.\n3\nCon: Would be some potential for visible\ndisagreement and debate. Would\nrequire more of your time than Option 1.\nBased on your decision on the format and agenda for the\nmeeting, we will meet individually with the House and\nSenate leadership, and selected Members ahead of time\nto solicit their views on the session. If we encounter\nstrong opinions on the Hill, we might need to suggest\nsome modifications to the format and agenda after these\nCongressional contacts.\nWe will be following up with briefing papers on the Com-\nmissions, your regulatory reform program, and suggested\nquestions and answers once the date and format have been\nfixed.\nDecision\nOption 1\nOption 2\nSee Me\nIndependent Regulatory Agencies\nMembership\nCivil Aeronautics Board\nJohn Robson, Chairman\nG. Joseph Minetti\nLee R. West\nRobert D. Timm\nRichard J. O'Melia\nCommodity Futures Trading Commission\nWilliam T. Bagley, Chairman\nJohn Vernon Rainbolt II\nRead Patten Dunn, Jr.\nGary Leonard Seevers\nConsumer Product Safety Commission\nRichard O. Simpson, Chairman\nBarbara H. Franklin\nLawrence M. Kushner\nConstance E. Newman\nR. David Pittle\nFederal Communications Commission\nRichard E. Wiley, Chairman\nRobert E. Lee\nBenjamin L. Hooks\nCharlotte T. Reid\nGlen O. Robinson\nAbbott Washburn\nJames H. Quello\nFederal Maritime Commission\nHelen Deligh Bentley, Chairman\nJames V. Day\nAshton C. Barrett\nGeorge H. Hearn\nClarence Morse\n2\nFederal Power Commission\nJohn N. Nassikas, Chairman\nWilliam L. Springer\nDon S. Smith\nFederal Trade Commission\nLewis A. Engman, Chairman\nPaul Rand Dixon\nMayo J. Thompson\nM. Elizabeth Hanford\nStephen A. Nye\nInterstate Commerce Commission\nGeorge M. Stafford, Chairman\nAlfred T. MacFarland\nKenneth H. Tuggle\nRupert L. Murphy\nVirginia Mae Brown\nWillard Deason\nDale W. Hardin\nRobert C. Gresham\nRobert J. Corber\nA. Daniel O'Neal\nCharles L. Clapp\nNuclear Regulatory Commission\nWilliam A. Anders, Chairman\nVictor Gilinski\nRichard T. Kennedy\nEdward A. Mason\nMarcus A. Rowden\nSecurities and Exchange Commission\nRay Garrett, Jr., Chairman\nPhilip A. Loomis, Jr.\nJohn R. Evans\nA. A. Sommer, Jr.\nIrving M. Pollack\nSENATE\nMAJORITY LEADER - Mike Mansfield\nMINORITY LEADER - Hugh Scott\nOVERSIGHT COMMITTEES\nAgriculture & Forestry - - CFTC\nHerman E. Talmadge (Ga.)\nRobert Dole (Kan.)\n* Agriculture Production, Marketing, & Stabilization\nof Price\nWalter Huddleston (Ky.)\nMilton R. Young (N.D.)\nBanking, Housing and Urban Affairs - SEC\nWilliam Proxmire (Wisc.)\nJohn G. Tower (Tex.)\n* Financial Institutions\nThomas McIntyre (N.H.)\nJohn G. Tower (Tex.)\nCommerce\nWarren G. Magnuson (Wash.)\nJames B. Pearson (Kan.)\n* Aviation . - CAB\nHoward W. Cannon (Nev.)\nJames B. Pearson (Kans.)\n* Communications - FCC\nJohn O. Pastore (R.I.)\nRobert P. Griffin (Mich.)\n* Consumer - CPSC\nFrank E. Moss (Utah)\nJames L. Buckley (N.Y.)\n* Merchant Marine - FMC\nRussell B. Long (La.)\nJ. Glenn Beall Jr. (Md.)\n2\n* Surface Transportation - ICC\nVance Hartke (Ind.)\nLowell P. Weicker, Jr. (Conn.)\n* Oil & Gas Production & Distribution\nAdlai E. Stevenson (Ill.)\nTed Stevens (Alaska)\nGovernment Operations\nAbraham A. Ribicoff (Conn.)\nCharles H. Percy (III.)\nInterior & Insular Affairs - FPC\nHenry M. Jackson (Wash.)\nPaul J. Fannin (Ariz.)\n* Minerals, Materials, & Fuels\nLee Metcalf (Mont.)\nPaul J. Fannin (Ariz.)\nJudiciary -- FTC\nJames O. Eastland (Miss.)\nRoman L. Hruska (Neb.)\n* Admin. Practices & Procurement\nEd M. Kennedy (N.Y.)\nStrom Thurmond (S. C.)\n* Antitrust & Monopoly\nPhillip A. Hart (Mich. )\nRoman L. Hruska (Neb.)\nAppropriations Committee\nJohn L. McClellan (Ark.)\nMilton R. Young (N.D.)\n* Agriculture and Related Agencies (CFTC)\nGale McGee (Wyo.)\nHiram L. Fong (Ha.)\n* HUD - - Independent Agencies (CPSC)\nWilliam Proxmire (Wisc.)\nCharles McC. Mathias (Md.)\n3\n* Public Works (NRC, FPC)\nJohn Stennis (Miss.)\nMark O. Hatfield (Ore.)\n* State, Justice, Commerce, the Judiciary\n(SEC, FMC, FCC, FTC)\nJohn O. Pastore (R.I.)\nRoman L. Hruska (Neb.)\n* Transportation (ICC, CAB)\nBirch Bayh (Ind.)\nClifford P. Case (N.J.)\nHOUSE OF REPRESENTATIVES\nSPEAKER OF THE HOUSE - Carl Albert\nMINORITY LEADER - John Rhoads\nOVERSIGHT COMMITTEES\nAgriculture - CFTC\nThomas S. Foley (Wash.)\nWilliam C. Wampler (Va.)\n* Conservation and Credit\nBob Bergland (Minn. )\nEdward R. Madigan (Ill. )\nBanking, Currency, and Housing - SEC\nHenry S. Reuss (Wis.)\nAlbert W. Johnson (Pa.)\n* Financial Institutions Supervision, Reg. & Ins.\nFernand J. St. Germain (R.I.)\nJohn H. Rousselot (Calif.)\nGovernment Operations\nJack Brooks (Tex.)\nFrank Horton (N.Y.)\nInterior and Insular Affairs - FPC\nJames A. Haley (Fla.)\nJoe Skubitz (Kans.)\nMerchant Marine & Fisheries - FMC\nLeonor Sullivan (Mo.)\nPhilip E. Ruppe (Mich.)\n*\nMerchant Marine\nThomas M. Downing (Va.)\nPaul N. McClosky Jr. (Calif.)\n2\nInterstate and Foreign Commerce\nHarley O. Staggers\nSamuel L. Devine\n* Communications - FCC\nTorbet H. Macdonald (Mass.)\nLouis Frey Jr. (Fla.)\n* Oversight & Investigations\nJohn E. Moss (Calif. )\nJames M. Collins (Tex.)\n* Energy & Power - FPC\nJohn D. Dingell (Mich.)\nClarence J. Brown (Ohio)\n*\nConsumer Protection & Finance - CPSC & FTC\nLeonil Van Deerlin (Calif.)\nJohn Y. McCollister (Neb.)\n* Transportation & Commerce - ICC\nFred B. Rooney (Pa.)\nJoe Skubitz (Kans.)\nJudiciary - FTC\nPeter W. Rodino (N.J.)\nEdward Hutchinson (Mich.)\n* Admin. Law & Gov't. Relations\nWalter Flowers (Ala.)\nCarlos J. Moorhead (Calif.)\n* Monopolies & Commercial Law\nPeter Rodino\nEd Hutchinson\nPublic Works and Transportation\nRobert E. Jones (Ala.)\nWilliam H. Harsha (Ohio)\n* Aviation - CAB\nGlenn M. Anderson (Calif. )\nGene Snyder (Ky.)\n* Surface Transportation\nJames J. Howard (N.J.)\nBud Shuster (Pa.)\n3\nJoint Committee on Atomic Energy (NRC)\nJohn O. Pastore (R.I.)\nMelvin Price (Ill.)\nAppropriations Committee\nGeorge H. Mahon (Tex.)\nElford A. Cederberg (Mich.)\n* Agriculture and Related Agencies (CFTC)\nJamie L. Whitten (Miss. )\nMark Andrews (N.D.)\n* HUD - Independent Agencies (CPSC)\nEdward P. Boland (Mass. )\nBurt L. Talcott (Calif. )\n* Public Works (NRC, FPC)\nJoe L. Evans (Tenn.)\nJohn T. Myers (Ind.)\n* State, Justice, Commerce and Judiciary (SEC, FMC, FTC,\nFCC)\nJohn M. Slack (W. Va. )\nElford A. Cederberg (Mich.)\n* Transportation (CAB, ICC)\nJohn J. McFall (Calif. )\nSilvio O. Conte (Mass.)\nHouse Republican Task Force on Antitrust\nand Regulatory Reform\nChairman: H. John Heinz, III\nAGENDA\nMeeting with Independent Regulatory Agencies\n1. Lynn/Cannon\n(Introduce President)\nBrief\n2. Presidential Key Note Address\n(Note: Outline of Presidential talking\npoints attached, final remarks to be\nsupplied)\n10-15 mins.\n-- Purpose of the session.\n-- Role and Importance of the Regulatory\nAgencies.\n-- Nature of Joint Congressional/Executive\nBranch Oversight.\n-- Specific problems and considerations:\nNeed to evaluate the economic impact\nof proposed regulations.\nNeed to ensure that consumers and\nother interest groups receive a\nfair hearing.\nNeed to act expeditiously when\nappropriate.\nNeed to keep the public better informed\nof regulatory activities and their\nconsequences.\n-- Brief summary of Presidential regulatory reform\nprogram including legislative and adminis-\ntrative actions.\n3. Congressional Remarks\n20-30 mins.\n4. Remarks by Selected Commission\nChairmen\n20 mins.\nFor Example:\nEngman (FTC) Role of Competition\nGarrett (SEC) - Regulatory Modernization\nWiley (FCC) - Administrative Improvements\n2\n5. Discussion among Chairmen, Congressional\nSpokesmen, and Executive Branch\nRepresentatives\n1 hour\n6. Summary and Closing Remarks\nBrief\nSuggested Talking Points for the President's\nMeeting with the Independent Regulatory Commissions\nI. Introduction- - Why I have asked for this meeting.\nThere is a growing concern expressed by many Americans that\ngovernment regulations have not changed as quickly as they should,\nin light of major changes in the structure and functioning of our\neconomy.\nThe most persistent concern arises from the belief that many regu-\nlations now cost the country as a whole more than they return in\nbenefits and that the general public interest therefore becomes\nsecondary to a particular special interest.\nIn assembling this meeting of Independent Agency members and\nCongressional leaders, I do not mean to suggest that the problem\nresides exclusively in these agencies. Regulations that impose\ncosts on consumers can be found in Cabinet Departments and in an\nintricate, sometimes invisible web of laws, ordinances, and regu-\nlations at the State and local levels.\nI feel that you and your Commissions--with unique powers and\nresponsibilities--ca play a major role in documenting and cor-\nrecting any such imbalances.\nBecause I place a high premium on the openness of government, I\nwant to review with you the steps I am taking. And I will ask for\nyour help and the Congress' in identifying ways the Commissions\nmay be most helpful in our collective efforts to restore the health\nand vitality of the American economy. As we look for short-term\nsolutions, we must also chart a course that permanently relieves\nthe economy of unnecessary impediments in the long term.\nII. Why the Independent Commissions are Important.\nCongress and the Presidency have given you extraordinary grants of\nauthority. You function partially like the Executive, Legislative, and\nJudicial Branches of government. With unusual powers and responsi-\nbilities, you should function as models of good and open government.\nYou should make every effort to pinpoint those areas in which\neconomic realities today have overtaken circumstances which caused\nthe government to create special remedies. You should be the leaders\n2\nin identifying areas where regulations are now obsolete and areas\nwhere we need to focus more attention.\nYou should constantly strive to improve your abilities to identify\nall the costs of regulations in order to put before the American\npeople the most well documented description of the potential costs\nand benefits of proposals. You should make sure that the quality\nof your economic analysis matches the same standards of legal\nprofessionalism which you strive to maintain. This involves a\nmore open discussion of both (a) the economic costs of less com-\npetition than might otherwise exist absent some regulations and (b) the\ncosts to society to comply with mandates which seek worthwhile goals.\nYou should do everything you can to make sure that backlogs in reg-\nulatory proceedings don't help destroy the public's belief in an equitable\nregulatory system. For example, many companies cannot make important\ncapital investments, which generate employment and advancement oppor-\ntunities for thousands of Americans, without your cooperation. You\nshould strive to give these applications a professional, but speedy, review.\nYou have a special realtionship to Congress and the Executive. You should\nbe aggressive in offering new ideas which legislatively and/or administra-\ntively will help both of us do a better job to obtain necessary changes in\nyour authorizing statutes, to facilitate the necessary judicial review of\nyour decisions, etc.\nIII. What My Administration is Doing.\nI have a firm belief that the \"hidden\" costs that government imposes on\nprivate citizens should be uncovered. Everyone has a right to know what\nlegislation and regulations are costing them, both in tax dollars and in\nhigher prices. To help achieve this objective:\n(a) I have ordered all Departments and Agencies to analyze their\nmajor proposals with an Inflation Impact Statement. I am\npleased the House has changed its rules to require similar\nanalyses, and I note the Senate has several pieces of legisla-\ntion under review which would accomplish similar objectives.\nWhile there are differing legal views on whether your agencies\nare covered, I hope that you will adopt similar procedures.\nThe most important objective is that all of us better understand\nthe short and long-range economic consequences of our\nactions, and that you do your part to better fulfill your re-\nsponsibilities to Congress and the American people.\n3\n(b) I have asked all Departments and Agencies to re-examine their\npresent procedures for assuring better consumer representation\nin their decisionmaking processes. I urge each of you to make\nadditional efforts to include the general public (as well as the\nindustries you regulate) in your hearings and other proceedings.\nAlso, I would hope that you would make additional efforts to make\nunderstandable the nature of your actions so that the consumer can\nbe an active informed participant in your deliberations.\nI also feel that government should only intrude in the free market\nwhen private concerns have proven their unwillingness to respond to\nlegitimate public concerns or when inherent monopoly structures pre-\nvent a freely competitive market system from operating. Government\nshould be attempting to foster rather than curtail competition, to give\nmaximum freedom to private enterprise, consistent, of course, with\nour belief that government also has a continuing responsibility to pursue\nand prosecute those who are guilty of predatory pricing tactics, those\nwho are guilty of fraud or deceit, and those who willfully neglect\nacceptable standards of health and safety conduct.\nAgencies engaged in regulatory activities can expect that the Attorney\nGeneral, through the Antitrust Division, will continue to appear and\nparticipate in agency proceedings to represent the interests of compe-\ntition and thus, the interests of consumers in lower prices.\nBecause of my strong conviction that the consumer is far more able to\nsignal his wants and needs to business, (than the government is able to\ndictate what those needs should be) I have proposed, and will continue\nto sponsor legislation to relax or eliminate the Federal Government's\ncontrol over areas where I believe the marketplace can do a better job.\nFor example, the legislation I will be proposing would involve the\ngovernment less in the setting of prices and would permit greater\ninnovation by making it easier for new businesses to compete with\nexisting firms and to remove barriers from existing firms to develop\nnew services.\nWe have or will be proposing legislation in such areas as energy, trans-\nportation, financial and securities institutions, and communications. I\nhave asked the Congress for its cooperation in giving these bills an\nearly hearing, and I ask for your support in achieving needed reforms.\n4\nMy legislative program seeks to reinforce and strengthen those areas in\nwhich government intervention must continue to do a better job; e.g.,\nto detect and penalize those guilty of antitrust violations- but it also\ncalls for government regulators to allow the forces of competition to\nwork as well. But no government agency can take the place of entrepre-\nneurial spirit which helps insure that innovative and cost-saving ideas\nare continually offered to the public.\nIV. Conclusion.\nThis meeting is only the beginning: I want to start a dialogue today,\nand I want it to continue in the open, where Congress and the public can\nparticipate to the fullest extent.\nI want to encourage new ideas from everyone here. We have a big\njob ahead of us--that is to reach an agreement on a more clearly\narticulated set of roles and responsibilities for government regu-\nlation-whether it is spelied out in detailed statutes or administered\nwith a. broad grant of authority to Commissions or other offices of\nthe Executive Branch.\nWe need a more open and candid discussion between Congress and the\nExecutive on what constitute acceptable criteria for qualifications to\nserve as a regulatory commissioner or other Executive official with\nregulatory responsibilities. We need to examine our overlapping juris-\ndictions and decide on what groundrules we all interact, whether it\ninvolves budgetary decisions, legislative proposals, administrative\nchanges, etc.\nTo these ends, I ask each Commission Chairman here, as an individual\nAmerican, and not just as the holder of a certain official position, to\nsend to me and the Congress within the next three weeks, your personal\nviews on those areas of government regulatory practices which you feel\nare most deserving of attention and reform. I hope that this meeting\nwill begin a program of action and a new spirit of cooperation.\nTHE WHITE HOUSE\nWASHINGTON\nMay 7, 1975\nMEMORANDUM TO:\nJIM CANNON\nFROM:\nPAM NEEDHAM\nKATHLEEN RYAN\nSUBJECT:\nVirginia Knauer's Proposed Consumer Plan\nHaving reviewed Virginia Knauer's proposed plan to implement\nthe President's consumer policies, we have several general\nobservations:\n1. Virginia continues to address her papers on this\nproject to Bill Baroody and Jim Lynn, although the\nPresident has asked you to coordinate the program.\n2. She is proposing a 5 month period in which to formu-\nlate new department policies. Our impression is that\nwe had something much shorter in mind.\n3. She proposes to spend all of May and June in preparing,\ndistributing, and analyzing questionnaires to Cabinet\nmembers.\n4. Before the questionnaires are distributed a Domestic\nCouncil meeting is proposed with the President in\nattendance. Our recommendation is that such a meeting\ncould be an inefficient use of these busy persons' time.\n5. Her plan to publish the results of the questionnaire\ncould cause a great deal of problems.\n6. The meetings with individual Cabinet members would not\nbegin until July and would continue into September.\nIt is our recommendation that you call Virginia and tell her\nthat the President attached some urgency to this project and\nthat 5 months is too long.\n-2-\nAlso, that you suggest she visit the Cabinet members imme-\ndiately and also determine whether their earlier submissions\nto you could serve in place of a questionnaire.\nAnother option, and one that will perhaps be necessary, is that\nyou sit down with her yourself and go over her plans.\nTHE WHITE HOUSE\nWASHINGTON\nDate\nMay 7, 1975\nTO:\nJIM CANNON\nFROM: JIM CAVANAUGH\nFYI\nFor appropriate action\nCOMMENTS\nThe Strip Mining bill passed in\nthe House this afternoon 293-115.\n(Last time - House vote was 333-86)\nTHE WHITE HOUSE\nWASHINGTON\nMay 6, 1975\nCABINET MEETING\nWednesday, May 7, 1975\n6:30 p.m.\nThe Sequoia\nFrom: James E. Connor JR\nI. BACKGROUND, PARTICIPANTS & PRESS PLAN\n1. Background:\nYou last met with the Cabinet on April 29th when the agenda\nwas devoted entirely to the Vietnam evacuation.\n2. Participants: Attached at Tab A\n3. Press Plan: Press Photo Opportunity at Dock; David Kennerly Photo.\nII. TALKING POINTS\n1. This is my first visit to the Sequoia since I became President.\nI'm delighted that I can share that experience with my Cabinet.\n2. I know that some of you will have to leave us in midstream to\nkeep some diplomatic commitments.\n3. The rest of us I think should take advantage of the setting and\nthe fact that we're not pressed by time to explore a number of\nquestions in some depth.\n4. Let's start with an area we are all concerned with- The Congress.\nLast January Jack Marsh gave us a very helpful briefing on the\nnew Congress and how it promised to shape up. I'd like Jack to\ngive us a review now on the basis of the last four months of experience.\nJack,\n- 2 -\n5. Most of you have now had some contact with the Congress.\nI'd like to hear from each of you on what your experience has\nbeen and on how you assess the next several months. Nelson,\nlet's start with you\nHenry (Kissinger)\nJim (Schlesinger)\nEd (Levi)\nEarl (Butz)\nJohn (Dunlop)\nCarla (Hills)\nBill (Coleman)\nSteve (Gardner)\nJohn (Tabor)\nFred (Dent)\nJim (Lynn)\nAlan (Greenspan)\nFrank (Zarb)\nRuss (Train)\n6.\nWe will be confronted over the next few weeks and few months with\nmany pieces of objectionable legislation that could easily result in\na string of very difficult vetoes.\nSome of these vetoes will be based on philosophical or policy grounds,\nbut most will be objectionable because of their damaging impact\non the budget.\nIn many cases our veto strategy will not be to block the enactment\nof legislation, but to cause the Congress to make legislation more\nacceptable either because of threat of veto, or because it has been\nsuccessfully vetoed. If we can establish a beachhead early on, using\nthe veto to demonstrate strength, we may not have to use it as\nfrequently in the future.\nWe have taken a firm stand to hold the deficit line at $60 billion for\nFY '76 and both Houses of Congress have passed budget limits\nsubstantially over this figure. In all likelihood it may not be possible\nto sustain a veto on every one of these issues, but I do not believe\nthat we can let these facts deter us in opposing these expensive\nspending programs.\nEach of them will be attractive to a particular segment of the\npublic and subject to much political posturing by their supporters\nin Congress.\n- 3 -\nHowever attractive these individual proposals may be, our best\napproach is to attempt to keep the focus of attention on their overall\nimpact on our efforts to keep the budget and deficit within reason.\nTherefore, it is imperative in your appearance before Congressional\ncommittees, before audiences around the country, and in your\npress statements to emphasize that we recognize individual needs\nin each of these areas and are willing to accommodate them within\nsensible limits, however to spend way beyond our means in all of\nthese areas will result in the strong possibility that the economic\ndamage to all Americans will be extreme.\nThe great advantage we have is that the Administration can speak\nwith one view, whereas the Congress is badly divided and\nfragmented both along party lines and on issues.\nThe departments are not independent but are interrelated, and\nfrequently other Cabinet heads and members of the Subcabinet\ncan offer great assistance to other departments in the legislative\nprocess. This assistance should be both sought and given in order\nto have a cooperative, concerted action on the Hill.\nDepartment heads should communicate frequently, not just with\nthe White House, but also with other Departments to exchange\ninformation and develop concerted efforts.\nThe base of any vote for legislation, or to sustain any veto, is\nwith the Republicans in the House and the Senate.\nYou and your chief officers should be in constant communication\nwith the Republican leadership, and this should not wait until\nyou have a piece of legislation on the floor.\nThe first third of this session has nearly passed. Prior to the\nMemorial Day recess every Cabinet officer and Subcabinet Officer\nshould see that a personal contact has been made with the Members\nof your jurisdictional Committees, Republicans and Democrats.\nThis should be a courtesy call to see where things stand and ascertain\nwhat is on the Member's mind. If every department of government\nwould do this, it would assure that each Member of the House and\nSenate has had a personal call by a Senior Official of the Administration.\nIt is vital that you increase the tempo of Congressional visitation\nboth on the Hill and by invitation to your Department. In these\n- 4 -\nmeetings the program of your Department should be stressed,\nand the key issues of the Administration should be explained.\nPoint out why we must hold the line on federal spending.\nFinally, you may encounter arguments that the way to hold\ndown spending is to cut the Defense Budget. This argument\nmust be resisted by all Cabinet Officials. This critical period\nin which we live, and especially when other nations look to\nAmerican determination, makes it essential that we maintain\nour strength in order to maintain our credibility.\nLet us work for the best possible version of these bills, but\nlet us all work together to keep the cost within the goals\nthat we have set for ourselves.\n7.\nI 'd like Jim Schlesinger and Max Friedersdorf to bring us\nup to date on the status of the evacuees and the Congressional\nreaction.\nJim,\nMax,\n8. We have a moral obligation to help these refugees resettle and\nbegin new lives in the United States. They fled from South Vietnam\nfor two reasons: They feared that they would be killed if they stayed\nand they did not want to live under a Communist system of government.\nBy helping these refugees, many of whom fled their native land with\nnothing but the clothes on their backs and a few small parcels, we\nare living up to our heritage as a charitable and compassionate\npeople. I have spoken out strongly on this issue because I believe\nstrongly that we must do the right thing morally. We are a nation\nof immigrants, and I believe the inscription on the Statue of Libery,\nwhich enunciates our finest qualities as a people should be our\nguidepost in this tragic situation.\nThe maximum number of refugees expected is 150,000 at the most,\nand it probably will be less. Sixty percent of that number are\nchildren, the innocent victims of this war who deserve a chance to\nlive their life in freedom and will certainly not be taking anyone's\njob away. Only 35, 000 refugees are heads of households who\nwill be looking for jobs; but many of these have skills which will\nenable them to find employment. The number of job seekers is a\ntiny fraction of 1% of the labor force in the U.S. Even without the\n- 5 -\nVietnamese refugees, the U. S. has been opening its doors\nto 400, 000 immigrants a year without any impact on the job\nmarket. Since the end of World War II, almost 1, 400, 000\nrefugees from Europe, Asia, Hungary and Cuba have fled\noppression and sought freedom in the United States. They have\nmade a rich contribution to our culture and our economy, and\nwe expect the Vietnamese will do the same.\nMany of the Vietnamese refugees coming here have close relatives\nor sponsors in the United States, so they will be no burden to\nthe government. Ambassador Brown's office at the State\nDepartment is using a computer to match up the refugees' job\nskills with the available jobs. The resettlement program is\nbeing carried out in such a way that the refugees will be spread\nthroughout the country without a heavy concentration in any one\narea.\nWe are working with other countries to resettle perhaps as many\nas 20, 000 of the refugees outside the United States. Canada is\nwelcoming some. Some French-speaking countries in Africa\nhave indicated that they will take some.\nI want to emphasize one point. It is my intention that none of the\naid money I am requesting from Congress will be spent by the\nUnited States Government to help the Communists of North and\nSouth Vietnam. I believe it is the responsibility of the nations\nwhich sent weapons of war to the Communists to come forward\nnow to repair the damage.\nLet me emphasize once more my deep moral commitment to help\nthese refugees resettle and begin new lives in the United States.\nDespite the opposition of a few, I believe the majority of the\nAmerican people want to live up to the finest traditions of our\nhistory and welcome these new immigrants as we have welcomed\nso many immigrants to our bountiful land in the past. We will\nbe a better country and a better people for doing it.\nI hope in your speeches and public appearances you will support\nmy position on the refugee situation.\n9. The Congress has moved closer to a decision on the Consumer Advocacy\nAgency. Jim Cannon will brief us on the situation. Jim\n- 6 -\nI am disappointed that we have not had a greater response from\nthe Departments with reference to the Consumer Agency\nlegislation. I am very strongly against it, and I think each of you if\nyou would spend the time to look at the bill, would be equally\nagainst it.\nI want to make very sure that in the days and weeks ahead you\ndo take the time to understand how this bill can upset the\noperations of your departments and convey this feeling to the\nappropriate Congressional members.\n11. In my speech to the Yale Law School last week, I set forth the\nbasic theme of a Crime Message. In preparing the message I\nwant you to follow the lead of that speech and flesh it out, but\nI do not want it to be narrow or technical. The message on this\nsubject is of so much direct concern to the daily lives of the\npeople that it must be clear and understandable to the public\nas well as to the Congress and the legal fraternity.\nThe chief theme is concern for the victim, for insuring domestic\ntranquility--we have a responsibility to try to provide safety in\nthe streets and in our homes. The emphasis should be on\nprotection of the victims--the poor, the disadvantaged minorities,\nthe old, the very young--those who are least able to provide\nfor their own safety. The kind of crime that should be our\nchief target is the kind that is on the minds of most people--\nmuggings, robberies, murders, assaults, rapes, breakins,\nhold-ups--the kind of crime that is having the most disruptive\neffects politically and socially. The central recommendation\nshould be swift and sure punishment upon conviction for a\nserious crime.\nWhen I say emphasis I do not mean that other matters should\nbe excluded or that they are not important. Rehabilitation\nprograms should not be abandoned, but there are grounds for\ndoubting that they work. We must re-think rehabilitation\nefforts, study the research already done, and try to understand\nthe consequences. I do not want the message to suggest that\nwe are relying on rehabilitation programs for reducing violent\ncrime.\n- 7 -\nThe experience of the last 15 years should make us reluctant\nto boast that we, or anyone, know how to eliminate crime.\nWe have spent billions, and crime has gone up. The tone of\nthis message should be modest in any claims that are made.\nBut we should be very firm on one point: mandatory sentencing\nfor serious crimes committed by persons with prior criminal\nrecords. A small percentage of repeaters accounts for a large\nproportion of violent crime: The present version of the Senate\nBill permits almost total flexibility in penalties; it allows\na judge to give no sentence to a convicted robber, for example,\nor to sentence him. A convicted robber should definitely go\nto prison, but 15 years may be too long a sentence, except\nfor unusual circumstances.\nThe crime message must look into the question of upgrading\nprisons and making them more manageable.\nOf course, the kind of crime I am speaking of is more a\nconcern of state and local jurisdictions than of the federal\ngovernment, but I want the Administration to assume fully,\nand without excuses, our share of the responsibility. Organized\ncrime is a federal responsibility and must be discussed, but\nI want the emphasis on street crime, and not on so-called\n\"suite crime.\"\nThere is a tendency to link the economic situation and\ncrime--for instance, to argue that unemployment causes crime,\nand that the way to reduce crime is to eliminate unemployment.\nI have doubts about that line of reasoning. It may be true\nthat crime goes up when unemployment goes up, but crime\nhas also gone up when unemployment has gone down. In this\nmessage I do not want to see the argument that we can deal\nwith crime only by eliminating so called root causes. It is\nimportant to deal with unemployment for its own sake. The\nconnection with the crime problem confuses both issues.\n12. Frank Zarb will give us an update on the energy legislation.\nFrank,\n13. Russ Train suggested that a trip on the Potomac might be a\ngood place to discuss the water quality program. Russ\nRevised 9:45 5/7/75\nAttendees for Cabinet Meeting, Wednesday, May 7, 1975, 6:30 p.m. on\nboard the Sequoia\nThe President\nThe Vice President\nThe Secretary of Defense, James R. Schlesinger\nThe Attorney General, Edward H. Levi\nthe Secretary of Agriculture, Earl L. Butz\nThe Secretary of Labor, John T. Dunlop\nThe Secretary of Housing and Urban Development, Carla A. Hills\nThe Secretary of Transportation, William T. Coleman\nThe Deputy Secretary of State, Robert S. Ingersoll (For Secretary Kissinger\nwho has another commitment)\nThe Deputy Secretary of the Treasury, Stephen S. Gardner (for Secretary Simon\nwho has a commitment on the Hill)\nThe Under Secretary of Commerce, John K. Tabor (for Secretary Morton,\nwho will be out of the country)\nThe Counsel to the President, Philip W. Buchen\nThe Special Representative for Trade Negotiations, Frederick B. Dent\nThe Counsellor to the President, Robert T. Hartmann\nThe Director of the Office of Management and Budget, James T. Lynn\nThe Counsellor to the President, John O. Marsh, Jr.\nThe Assistant to the President, Donald H. Rumsfeld\nThe U. S. Representative to the United Nations, John A. Scali\nWilliam Baroody, Assistant to the President (Public Liaison)\nJames Cannon, Assistant to the President (Executive Director, Domestic Council)\nRichard Cheney, Deputy Assistant to the President\nJames Connor, Secretary to the Cabinet\nMax Friedersdorf, Assistant to the President (Legislative Affairs)\nAlan Greenspan, Chairman, Council of Economic Advisers\nRonald Nessen, Press Secretary to the President\nGeneral Brent Scowcroft, Deputy Assistant to the President (National Security\nAffairs)\nL. William Seidman, Assistant to the President (Executive Director, Economic\nPolicy Board)\nWilliam Greener, Deputy Press Secretary to the President\nMary Louise Smith, Chairman, Republican National Committee\nRussell Train, Administrator, Environmental Protection Agency\nFrank Zarb, Administrator, Federal Energy Agency\n[Also attending for this meeting will be the Personal Physician to the President,\nDr. William Lukash; David H. Kennerly; and Terry O'Donnell]\nNote:\nThere will be no representative from the Departments of the Interior and HEW;\nSecretary Weinberger of HEW will be out of the country, and there is no\nincumbent Deputy; the Secretaryship of Interior is vacant pending Gov.\nHathaway's confirmation by the Senate, and there is no incumbent Deputy.\nJAMES M. CANNON\nMay 7, 1975\nDRAFT\nNotes from Conversation with Bill Kendall\nSUBJECT:\nConsumer weiker Advocacy\nSenator has comments from 38 Senators\nwho will support the elimination of the labor exemption.\nMore may be forthcoming.\nSenator Dole will propose a ammendment\nto make the date effective in 1977 or 1978.\nDole will also make a proposal to\neliminate expenditures to one million a year for each\n'\nof the first three years.\nFORD is LIBRARY GERALD\nTHE WHITE HOUSE\nWASHINGTON\nMay 7, 1975\nTALKING POINTS\n1.\nAt the last Cabinet Meeting - April 16\nthe President requested -\na)\nMeeting with Virginia Knauer\nb)\nCall appropriate Congressional\nCommittee Chairmen and ranking\nMinority Members\n2.\nDr. Connor and I are working together on a memo\nApril 25, 1975\n3.\nWithin the last 48 hours - calls have been\nmade to each Cabinet official\n4.\nSecretary Butz talked to Senators Talmadge and\nSenator Dole\nAttorney General Levi talked to Senators Eastland\nand Hruska - refer to Judiciary\n5.\nJohn Tabor at Commerce said they had talked\nwith 85% of Senate members.\n6.\nSecretary Dunlop reported to me that he had\nmet with Senators Williams and Senator Javits.\n7.\nSecretary Hills -\n8.\nSecretary Simon -\n9.\nSecretary Coleman -\n10.\nSteve Kursman for Secretary Weinberger - Talked\nwith 4 key Senators. Thinks he may have persuaded\nSenator Bell to reexamine his position.\n- 2 -\nRoy Hughes\nINTERIOR\n-\nEPA\n-\nAPPROACH\nEliminate Labor exemption 38 votes\nEffective 77-78\nDole-\n1 million yearly.\nVirginia Knauer has telephoned all Cabinet officers\nfor appointments and is working with OMB to draft\na questionnaire to assist her in getting the necessary\ninformation she will need to develop a departmental\nconsumer plan.\n[5/7/75]\nCalonit -\ncap / form Dulor & mator\n(N down Tabur _)1\non with was Education the next mule\nis thes manny many\npeach into Down porkets\nearly in much (Not Thenky An)\n(for Dulop\nA\n1 him $1 Duham - leursh do\noffice for where ty\nat\nJul Waggover\nLewi -\nmust teching\non CT un\nFORD <<\nControl - when\n+\nP- - wenterns are'\nmuch personal\nprovery VI Gorerntal\nprivacy\nl\nfor Expedito\nNEW of\ncrem or\nConsument\nasmila )\nFORD HIBRARY"
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