Weekly Compilation of Presidential Documents

Monday, July 12, 1999 Volume 35—Number 27 Pages 1275–1332

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Addresses and Remarks Executive Orders Arizona, roundtable discussion on small Blocking Property and Prohibiting business development in Phoenix—1303 Transactions With the Taliban—1281 California National Academy Foundation conference Interviews With the News Media in Anaheim—1322 Exchange with reporters at Pine Ridge Indian Patients’ Bill of Rights in Torrance—1327 Reservation, SD—1298 Youth opportunities, discussion in Los Interviews Angeles—1318 Ron Brownstein of the Los Angeles Illinois, community in East St. Louis—1289 Times—1311 Kentucky, community in Hazard—1278 Ron Insana of CNBC’s ‘‘Business Mississippi Center’’—1293 Delta region investment, roundtable discussion in Clarksdale—1285 Joint Statement Departure from Clarksdale—1289 Joint Statement With Prime Minister Nawaz New markets initiative—1289 Sharif of Pakistan—1278 Radio address—1276 South Dakota Meetings With Foreign Leaders Ellsworth AFB community in Rapid City— Pakistan, Prime Minister Sharif—1278 1302 Pine Ridge Indian Reservation Proclamations Community—1298 To Facilitate Positive Adjustment to Discussion—1296 Competition From Imports of Lamb Communications to Congress Meat—1308 Emigration policies and trade status of certain Statements by the President former Eastern bloc states, letter transmitting report—1281 Death of Karekin I—1275 Lamb meat imports, letter—1311 Sierra Leone peace agreement—1308 Taliban, U.S. national emergency, letter— Taliban, U.S. national emergency—1285 1283 Supplementary Materials Communications to Federal Agencies Acts approved by the President—1332 Federal Worker 2000 Presidential Initiative, Checklist of White House press releases— memorandum—1275 1332 Imported foods, memorandum on safety— Digest of other White House 1277 announcements—1331 Lamb meat imports, memorandum—1310 Nominations submitted to the Senate—1332

Editor’s Note: The President was in Los Angeles, CA, on July 9, the closing date of this issue. Releases and announcements issued by the Office of the Press Secretary but not received in time for inclusion in this issue will be printed next week.

WEEKLY COMPILATION OF regulations prescribed by the Administrative Committee of the Federal Register, approved by the President (37 FR 23607; 1 CFR Part 10). PRESIDENTIAL DOCUMENTS Distribution is made only by the Superintendent of Docu- ments, Government Printing Office, Washington, DC 20402. Published every Monday by the Office of the Federal Reg- The Weekly Compilation of Presidential Documents will be ister, National Archives and Records Administration, Washing- furnished by mail to domestic subscribers for $80.00 per year ton, DC 20408, the Weekly Compilation of Presidential Docu- ($137.00 for mailing first class) and to foreign subscribers for ments contains statements, messages, and other Presidential $93.75 per year, payable to the Superintendent of Documents, materials released by the White House during the preceding Government Printing Office, Washington, DC 20402. The week. charge for a single copy is $3.00 ($3.75 for foreign mailing). The Weekly Compilation of Presidential Documents is pub- There are no restrictions on the republication of material lished pursuant to the authority contained in the Federal Reg- appearing in the Weekly Compilation of Presidential Docu- ister Act (49 Stat. 500, as amended; 44 U.S.C. Ch. 15), under ments.

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Statement on the Death of Karekin I point forward, I want to make the safety and July 2, 1999 health of every Federal worker a central value in each operation performed in Federal Hillary and I were saddened to learn of workplaces. I ask all Federal agencies to help the death of His Holiness Karekin I, make Federal Government workplaces safe Catholicos of the Armenian Apostolic and productive. Furthermore, we need to en- Church. I have sent my condolences to the sure that, when injuries do occur, Federal Vicar General at the Holy See of employees are given the best possible care Echmiadzin. and are returned to work as quickly as pos- His Holiness was widely respected for his sible. deep scholarship, his deep sense of principle, To this end I direct the Secretary of Labor and his sincere devotion to the broadest pos- to lead an initiative focusing on the Federal sible ecumenical dialog. To all who followed workplace. This initiative will have a duration his inspired leadership in Armenia, the of 5 years, and will establish 3 measurable United States, and around the world, I offer goals: heartfelt sympathy and condolences on be- • reducing the overall occurrence of inju- half of myself and the American people. All ries by 3 percent per year, while im- the members of the Armenian Apostolic proving the timeliness of reporting of Church are in our thoughts and our prayers. injuries and illnesses by agencies to the Department of Labor by 5 percent per NOTE: This item was not received in time for pub- year; lication in the appropriate issue. • for those work sites with the highest rates of serious injuries, reducing the Memorandum on the Federal occurrence of such injuries by 10 per- Worker 2000 Presidential Initiative cent per year; and • reducing the rate of lost production days July 2, 1999 (i.e. the number of days employees Memorandum for the Heads of Executive spend away from work) by 2 percent per Departments and Agencies year. I also direct the Secretary to report to me Subject: Federal Worker 2000 Presidential each year on the progress made to reduce Initiative work-related injuries and illnesses, to provide Each year, Federal employees suffer over timely services, and to reduce the number 160,000 injuries or illnesses in the course of of days injured workers are away from their their employment. The Federal Govern- jobs. ment’s bill for medical treatment and wage I am convinced that this new focus on safe- loss compensation costs exceeds $1.9 billion ty and health in the Federal Government will each year. Even more disturbing is the pain result in fewer injured workers, significant and suffering of employees and their families cost reductions, and an enhanced ability to that is caused by these injuries and illnesses serve the American public. and the fact that many of such injuries and William J. Clinton illnesses are preventable. The Federal workforce is a valuable asset NOTE: An original was not available for to our healthy economy. We need to do more verification of the content of this memorandum. to protect our dedicated public servants from This item was not received in time for publication preventable injuries and illnesses. From this in the appropriate issue.

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The President’s Radio Address That is why today, consistent with our July 3, 1999 international obligations, I’m directing the Treasury Department and the Health and Good morning. This Independence Day at Human Services Department to take imme- backyard barbecues and picnics in local diate action to keep unsafe food from cross- parks, Americans celebrate the spirit of patri- ing our borders. First, we will take new steps otism that has strengthened our Nation for to stop port shopping, preventing importers 223 years now. Today I want to talk about whose unsafe food has been turned away at what we must do to ensure that the food we one U.S. port from slipping their goods in serve at those gatherings is as safe as we can at another. To make sure this unsafe food possibly make it, to keep our Nation growing can be easily spotted, we will stamp all re- healthy, as well as strong. jected food with the clear label, ‘‘Refused Our food supply is the most bountiful in U.S.’’ the world. And for 61⁄2 years, our administra- Second, Customs and the FDA will rigor- tion has been committed to making it the ously enforce and expand our policy of de- safest in the world, from establishing a na- stroying imported food that poses a serious tionwide early warning system for foodborne health threat rather than risk letting it reach illness to expanding food safety research and our grocery stores or the global market. public education programs to increasing in- Third, we’ll do more to deter dishonest im- spections of food at every point in the chain porters by increasing the bond they must of production. post while food is being inspected for safety. Last year I established the Joint Institute Too many importers forfeit their bonds as for Food Safety Research and appointed the a simple cost of doing business. That’s wrong, first-ever President’s Council on Food Safety and we should stop it. These steps will help to coordinate and expand food safety efforts at every level of the Federal Government. us to close the gaps in our food safety system. I’m proud of the progress we’re making, but But Congress must also act. I’m grateful when it comes to keeping our families safe, for the presence here today of Congressman we can always do more—and we must. Dingell and Congressman Brown. Congress Today, Americans eat more imported food should start by passing comprehensive food than ever before, and they have more choices safety legislation that would increase the than ever. Think of it: Thirty years ago, just FDA’s authority to turn away imported food a dozen kinds of fruits and vegetables were that does not meet our high safety standards. available year-round. Today, you could buy And Congress should grant USDA the au- a different kind of fruit or vegetable every thority to impose civil penalties and to order day of the year, and many were grown on mandatory recalls of unsafe meat and poul- the other side of the world. There’s no evi- try. dence that these fruits and vegetables are less Finally, Congress should fully fund my $72 safe than those grown here in the United million food safety initiative to increase the States. But some recent outbreaks of number of agents and inspections of high- foodborne illness have been traced to im- risk food products right here at home and ported foods. increase the number of inspections of foreign Our import laws are very clear. We will food processors around the world. not allow unsafe food to enter the United Americans have a right to know that the States. But a recent GAO report showed that food they serve their families is safe, whether some importers are sidestepping our laws it comes from the far corners of the world and getting contaminated food across our or the corner produce stand. I’m pleased that borders and onto our kitchen tables. While so many Members of Congress are com- most importers comply with our regulations, mitted to giving them that security. I appre- it only takes one bad apple to spoil the whole ciate the initiatives, especially of Senator bunch, only one shipment of contaminated Durbin and Representatives Dingell and food to threaten hundreds, even thousands, Brown, along with Senators Mikulski, Ken- of Americans. nedy, Harkin, Collins, and Representatives

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Eshoo and Waxman. I look forward to work- Agency to identify specific steps to improve ing with all Members of Congress of both the safety of the food supply. In October of parties to build a stronger nation with a 1997, I expanded my initiative to provide healthier food supply for the 21st century. special emphasis on the safety of domestic Have a happy and healthy Fourth of July, and imported fruits and vegetables. Last year and thanks for listening. at this time, I announced the creation of a Joint Institute for Food Safety Research NOTE: The address was recorded at 12:37 p.m. on July 2 in the Roosevelt Room at the White (JIFSR) to develop a strategic plan for con- House for broadcast at 10:06 a.m. on July 3. The ducting food safety research and efficiently transcript was made available by the Office of the coordinating all Federal food safety research. Press Secretary on July 2 but was embargoed for In August of 1998, I issued an Executive release until the broadcast. order to create the President’s Council on Food Safety, which is charged with (1) devel- Memorandum on the Safety oping a comprehensive plan for all Federal of Imported Foods food safety activities, (2) advising agencies of food safety priorities and developing coordi- July 3, 1999 nated food safety budgets, and (3) overseeing Memorandum for the Secretary of Health the JIFSR. We have made significant steps and Human Services, the Secretary of the domestically to help ensure the safety of our Treasury food supply. Subject: Safety of Imported Foods Today, I am expanding my Administra- tion’s food safety efforts even further to focus While the United States has one of the on the safety of imported foods. While the safest food supplies in the world, outbreaks majority of imported food is safe, problems of foodborne illness are still all too prevalent. do exist. These problems are the result of Millions of Americans are stricken by illness two major changes. At the turn of the cen- each year from foods they consume, and tury, relatively few foods were imported, but thousands, mostly the very young and the el- today, we are seeing a dramatic increase in derly, die as a result. The threats come from the importation of foods. Imports have dou- a variety of sources, including both imported bled over the past 7 years and, based on re- and domestically produced foods. Foodborne illness is difficult to control in cent trends, we expect at least an additional a changing world. Consumers enjoy a greater 30 percent increase by 2002. Finished and variety of foods than they did 50 years ago, fully packaged food products account for an including a greater emphasis on food from increasing proportion of all imported foods all around the world. Americans also eat and there has been a huge increase in fresh more foods prepared outside their homes, produce from all over the world. such as foods prepared in grocery stores, res- While there is no evidence that imported taurants, hospitals, nursing homes, schools, foods pose more of a risk than domestic foods and day care centers. We also are seeing the and most importers comply with the applica- emergence of new foodborne pathogens such ble requirements, there are a few ‘‘bad actor’’ as the highly virulent E. Coli O157:H7. importers who violate the rules and work to For these reasons, my Administration has subvert the system. We must give the agen- made food safety a high priority. I have re- cies responsible for food safety the tools nec- quested substantial annual increases to fund essary to deal with the importers who try to food safety initiatives such as a nationwide break the rules. While the Food and Drug early warning system for foodborne illness, Administration (FDA) inspects domestic fa- increased inspections, and the expansion of cilities, it has, in conjunction with the United food safety research, risk assessment, and States Customs Service (Customs), relied pri- education. In January of 1997, I directed the marily on border inspection to ensure the Secretary of Agriculture, the Secretary of safety of imported foods. Health and Human Services, and the Admin- I recognize that there are limitations on istrator of the Environmental Protection our resources and statutory authority to take

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measures to protect consumers against un- was embargoed for release until 10:06 a.m. on July safe imported foods. Indeed, there are cur- 3. An original was not available for verification rently bills before the Congress that would of the content of this memorandum. grant explicit authority to improve the safety of imported foods. I applaud these legislative Joint Statement With Prime Minister efforts and will continue to work with the Nawaz Sharif of Pakistan Congress to improve our authority and re- sources. July 4, 1999 Nevertheless, consistent with our inter- President Clinton and Prime Minister national obligations, we must take whatever Sharif share the view that the current fighting scientifically based steps we can to protect in the Kargil region of Kashmir is dangerous the public health in this area and provide the and contains the seeds of a wider conflict. necessary tools to ensure the safety of im- They also agreed that it was vital for the ported food. Specifically, I direct you to take peace of South Asia that the Line of Control all actions available to: in Kashmir be respected by both parties, in (1) Prevent distribution of imported unsafe accordance with their 1972 Simla Accord. It food by means such as requiring food to be was agreed between the President and the held until reviewed by FDA; Prime Minister that concrete steps will be (2) Destroy imported food that poses a se- taken for the restoration of the line of control rious public health threat; in accordance with the Simla Agreement. (3) Prohibit the reimportation of food that The President urged an immediate cessation has been previously refused admission and of the hostilities once these steps are taken. has not been brought into compliance with The Prime Minister and President agreed United States laws and regulations (so called that the bilateral dialogue begun in Lahore ‘‘port shopping’’), and require the marking in February provides the best forum for re- of shipping containers and/or papers of im- solving all issues dividing India and Pakistan, ported food that is refused admission for including Kashmir. The President said he safety reasons; would take a personal interest in encouraging (4) Set standards for private laboratories an expeditious resumption and intensifica- for the collection and analysis of samples of tion of those bilateral efforts, once the sanc- imported food for the purpose of gaining tity of the Line of Control has been fully re- entry into the United States; stored. The President reaffirmed his intent (5) Increase the amount of the bond post- to pay an early visit to South Asia. ed for imported foods when necessary to deter premature and illegal entry into the NOTE: An original was not available for United States; and verification of the content of this joint statement. (6) Enhance enforcement against viola- tions of United States laws related to the im- portation of foods, including through the im- Remarks to the Community in position of civil monetary penalties. Hazard, Kentucky Accordingly, I direct you, in consultation July 5, 1999 with my Food Safety Council and relevant Federal agencies, particularly the Depart- Thank you very much. Well, the Governor ment of Agriculture and the United States always told me if I would only come to Appa- Trade Representative, to report back to me lachia, I would get a very warm welcome. within 90 days on the steps you will take in I want to thank the good people of Hazard these areas to protect consumers from unsafe and Perry County for giving me that warm imported foods. We must do all that we can welcome. I want to thank all the people of to protect Americans from unsafe food. eastern Kentucky who have made me and William J. Clinton my party feel so welcome today—Paul and Judy Patton. I thank Mayor Gorman and NOTE: This memorandum was made available by Judge Noble. I thank those who have come the Office of the Press Secretary on July 2 but with me today—our Agriculture Secretary—

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you heard from Secretary Glickman—our ships, whether they landed on Ellis Island HUD Secretary, Secretary Cuomo; SBA Ad- in the 1890’s or came to Los Angeles Airport ministrator Alvarez. We have two Congress- in the 1990’s, around the Fourth of July we’re men here—Jim Clyburn from South Carolina supposed to celebrate what we have in com- and Paul Kanjorski, who came all the way mon as Americans, to reaffirm that what from Pennsylvania, because they have places unites us is more important than what divides like Appalachia there, and they wanted to us. Well, if we believe that, we have a shared come down here to be with you. stake in one another’s success. I want to thank Duane Ackerman and the I came here to say to you, I believe at this other CEO’s who are here, including Dick time of prosperity, if we can’t find a way to Huber of Aetna; the One Central Bank Ken- give every single hard-working American tucky CEO, Kit Stolen; Sara Gould from the family the chance to participate in the future Ms. Foundation; John Sykes from Sykes En- we’re trying to build for our country, we’ll terprises—I’ll mention him in a moment. never get around to do it. Now is the time I want to thank the Reverend Jesse Jack- to move forward. son, who keeps hope alive; and the others Our country is the world’s leading force in our group, including Al From, the leader for peace and freedom and human rights. We of the Democratic Leadership Council; and have the lowest crime rate in 25 years, the David Wilhelm, who is from nearby in Ohio lowest welfare rolls in 30 years; 90 percent and was my first Democratic National Com- of our little children are immunized against mittee chairman. I’d like to thank the young serious childhood diseases for the first time people here in AmeriCorps, and I would like in history. We have the longest peacetime to say a special word of thanks to Cawood expansion we’ve ever had, almost 19 million Ledford. Boy, he is—I was thinking that if new jobs. Wages are rising for the first time old Cawood had been a political announcer instead of a basketball announcer and I could in 20 years for ordinary people. We have a have kept him with me these last 25 years, million kids lifted out of poverty, the lowest I’d have never lost an election. minority unemployment rate ever recorded. You know, Kentucky has been good to me And yet, even though this is a blessed time and Hillary and to the Vice President. It has for America, not all Americans have been been brought to my attention that, in addi- blessed by it. And you know that as well as tion to the economy, we’ve been pretty good I do. for Kentucky. Since I’ve been in office, UK So I came here to show America who you basketball has had the most successful 6 years are. And when I leave here, I’m going on since Adolph Rupp was the coach. And Tim to the Mississippi Delta, to my home country. Couch hasn’t done badly, either. Then I’m going up into the middle West, and You know, yesterday we celebrated the last then over to Phoenix, Arizona, and up to the Fourth of July of this century—the last Pine Ridge Indian Reservation in South Da- Fourth of July of this century. Think of it— kota, and then ending this tour in east Los 223 Independence Days. I want you all to Angeles to make a simple point—that this drink plenty of water and I’ll make this quick, is a time to bring more jobs and investment but you need to know why we came here. and hope to the areas of our country that I wanted to come to the heart of America have not fully participated in this economic and Appalachia to talk about whether we’re recovery. We have an obligation to do it. all going forward into the 21st century, I started out the morning in the town of whether we really can build a bridge over Tyner, a little village, with a wonderful which we can all walk together. woman who took me to see her 69-year-old I’ll bet you some of you here are actually father that just lost his wife after 51 years the descendants of those people Governor of marriage. And I saw four generations of Patton talked about, the Revolutionary War that family. And I walked in the neighbor- heroes who helped to settle this State. But hoods, and I listened to the people tell me you know, whether our parents and their par- they needed better housing and better trans- ents came here on the Mayflower or slave portation.

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And then I went on to Mid-South Elec- to make the most of your God-given ability. tronics, a place that had 40 employees 10 That is what we are trying to do. years ago, and has 850 today and about to With the help of Vice President Gore, expand some more, to make the point that we’ve had 135 empowerment zones and en- any work that can be done by anybody in terprise communities—I was in one earlier America can be done here in Appalachia and today. They’ve helped to create tens of thou- throughout the other places in this country sands of jobs. But we have to do better na- where they’re not fulfilling their promise. tionwide. We’ve worked with people like the I came here in the hope that with the help Kentucky Highlands Investment Corpora- of the business leaders here, we could say tion. But we have to do better nationwide. to every corporate leader in America: Take So that’s why I’m going around here. I a look at investing in rural and inner-city want to do two things—well, really three. America. It’s good for business, good for Number one, I want people to know a lot America’s growth, and it’s the right thing to of good things are going on here now. Num- do. If we, with the most prosperous economy ber two, I want them to understand that in our lifetimes, cannot make a commitment more good things can go on, and number to take every person along with us into the three, I want us to do more. I want us to 21st century, we will have failed to meet a pass a law in Congress to create new markets moral obligation and we also will have failed in America, to say we’re going to give a to make the most of America’s promise. businessperson the same incentives to invest You know, these economists in Wash- in new markets in America we give them ington and New York used to tell me that today to invest in new markets overseas. if the unemployment rate ever dropped Now, meanwhile, I want to thank the com- below 6 percent in America we’d have infla- panies represented here—companies like tion out of control. Well, it’s been under 5 Bell South, ready to help provide jobs and percent for 2 years now, and inflation is still training for your people. The Ms. Founda- low. And I’m telling you, it can go lower. tion, the Appalachian Regional Commission, We can hire more people; we can have more with my friend Jesse White, here, will help jobs, but we’ve got to go to the places where Appalachian entrepreneurs create new small there have not been enough new jobs and businesses. Sykes Enterprises is making a there has not been enough new investment major commitment—listen to this—to con- and we have to provide incentives for people struct two information technology centers in to go there. eastern Kentucky that will bring hundreds of I asked these business and political leaders new jobs to Pike and Perry Counties. Thank to join me because we wanted to send a sig- you, Mr. Sykes. nal to America that we know that Govern- Across our Nation, banks like Bank One, ment can’t solve these problems alone. But Citigroup, Bank of America, First Union, will we know that we’ll never get anywhere by invest hundreds of millions of dollars to fi- leaving people alone, either—you’ve tried it nance new small businesses and other prom- that way here in the hills and hollows of Ken- ising enterprises. I want to thank all these tucky and West Virginia and Ohio and Vir- companies for their support. ginia and Appalachia, for years; that didn’t But again, I say: Look here, America. work out very well—that what works is when We’ve got people working out here and doing we go forward together. fine and doing marvelous things. Look here, I came here to say that I believe the Gov- business community. Take another look. ernment’s part is to create the conditions of There are great opportunities here. But I also a strong economy, to give individuals the want to say to the Congress: Just simply give tools they need to succeed, including edu- me one more tool for them; give people the cation and training, and to give incentives to same incentives to invest in Appalachia or businesses to take a second look at the places the Native American reservations or the Mis- that they have overlooked. And then the job sissippi Delta or the inner cities we give them of the private sector is to give you a chance today to invest in poor countries overseas,

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and let the American people show what they As required by law, I am submitting an can do. updated report to the Congress concerning Ladies and gentlemen, it’s been a hot day; the emigration laws and policies of Armenia, but when I’m gone, I hope you’ll remember Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, more than that the President came and you Moldova, the Russian Federation, Tajikistan, were hot. I hope you will remember that it Turkmenistan, Ukraine, and Uzbekistan. The was the beginning of a new sense of renewal report indicates continued compliance by for this region and for all the people in our these countries with international standards country to go forward together. concerning freedom of emigration. Thank you, and God bless you. Sincerely, William J. Clinton NOTE: The President spoke at 4:10 p.m. on Main Street. In his remarks he referred to Gov. Paul NOTE: Identical letters were sent to J. Dennis E. Patton of Kentucky and his wife, Judy; Mayor Hastert, Speaker of the House of Representatives, William D. Gorman of Hazard; Perry County and Albert Gore, Jr., President of the Senate. This Judge-Executive Denny Ray Noble; F. Duane letter was released by the Office of the Press Sec- Ackerman, chairman and chief executive officer, retary on July 6. Bell South; Richard Huber, chairman and chief executive officer, Aetna, Inc.; Alvin T. (Kit) Stolen III, president and chief executive officer, Bank Executive Order 13129—Blocking One Kentucky/Lexington Market; Sara Gould, ex- Property and Prohibiting ecutive vice president, Ms. Foundation for Transactions With the Taliban Women; John H. Sykes, chairman and chief exec- utive officer, Sykes Enterprises, Inc.; civil rights July 4, 1999 leader Jesse Jackson; retired University of Ken- tucky basketball broadcaster Cawood Ledford; By the authority vested in me as President former University of Kentucky quarterback and by the Constitution and the laws of the top 1999 NFL draft pick Tim Couch, Cleveland United States of America, including the Browns; and Jesse L. White, Jr., Federal Cochair- International Emergency Economic Powers man, Appalachian Regional Commission. Act (50 U.S.C. 1701 et seq.) (‘‘IEEPA’’), the National Emergencies Act (50 U.S.C. 1601 et seq.), and section 301 of title 3, United Letter to Congressional Leaders States Code, Transmitting a Report on Emigration I, William J. Clinton, President of the Policies and Trade Status of Certain United States of America, find that the ac- Former Eastern Bloc States tions and policies of the Taliban in Afghani- July 2, 1999 stan, in allowing territory under its control in Afghanistan to be used as a safe haven Dear Mr. Speaker: (Dear Mr. President:) and base of operations for Usama bin Ladin On September 21, 1994, I determined and and the Al-Qaida organization who have reported to the Congress that the Russian committed and threaten to continue to com- Federation was not in violation of the free- mit acts of violence against the United States dom of emigration criteria of sections 402 and its nationals, constitute an unusual and and 409 of the Trade Act of 1974. On June extraordinary threat to the national security 3, 1997, I determined and reported to the and foreign policy of the United States, and Congress that Armenia, Azerbaijan, Georgia, hereby declare a national emergency to deal Moldova, and Ukraine were not in violation with that threat. of the same provisions, and I made an iden- I hereby order: tical determination on December 5, 1997, Section 1. Except to the extent provided with respect to Kazakhstan, Kyrgyzstan, in section 203(b) of IEEPA (50 U.S.C. Tajikistan, Turkmenistan, and Uzbekistan. 1702(b)) and in regulations, orders, direc- These actions allowed for the continuation tives, or licenses that may be issued pursuant of normal trade relations for these countries to this order, and notwithstanding any con- and certain other activities without the re- tract entered into or any license or permit quirement of an annual waiver. granted prior to the effective date:

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(a) all property and interests in property (e) any conspiracy formed to violate any of the Taliban; and of the prohibitions set forth in this order is (b) all property and interests in property prohibited. of persons determined by the Secretary of Sec. 3. The Secretary of the Treasury, in the Treasury, in consultation with the Sec- consultation with the Secretary of State, is retary of State and the Attorney General: hereby directed to authorize commercial (i) to be owned or controlled by, or to act sales of agricultural commodities and prod- for or on behalf of, the Taliban; or ucts, medicine, and medical equipment for (ii) to provide financial, material, or tech- civilian end use in the territory of Afghani- nological support for, or services in support stan controlled by the Taliban under appro- of, any of the foregoing, priate safeguards to prevent diversion to mili- tary, paramilitary, or terrorist end users or that are in the United States, that hereafter end use or to political end use. come within the United States, or that are Sec. 4. For the purposes of this order: or hereafter come within the possession or (a) the term ‘‘person’’ means an individual control of United States persons, are or entity; blocked. (b) the term ‘‘entity’’ means a partnership, Sec. 2. Except to the extent provided in association, corporation, or other organiza- section 203(b) of IEEPA (50 U.S.C. 1702(b)) tion, group, or subgroup; and in regulations, orders, directives, or li- (c) the term ‘‘the Taliban’’ means the polit- censes that may be issued pursuant to this ical/military entity headquartered in order, and notwithstanding any contract en- Kandahar, Afghanistan that as of the date of tered into or any license or permit granted this order exercises de facto control over the prior to the effective date: territory of Afghanistan described in para- (a) any transaction or dealing by United graph (d) of this section, its agencies and in- States persons or within the United States strumentalities, and the Taliban leaders listed in property or interests in property blocked in the Annex to this order or designated by pursuant to this order is prohibited, including the Secretary of State in consultation with the making or receiving of any contribution the Secretary of the Treasury and the Attor- of funds, goods, or services to or for the ben- ney General. The Taliban is also known as efit of the Taliban or persons designated pur- the ‘‘Taleban,’’ ‘‘Islamic Movement of suant to this order; Taliban,’’ ‘‘the Taliban Islamic Movement,’’ (b) the exportation, reexportation, sale, or ‘‘Talibano Islami Tahrik,’’ and ‘‘Tahrike supply, directly or indirectly, from the Islami’a Taliban’’; United States, or by a United States person, (d) the term ‘‘territory of Afghanistan con- wherever located, of any goods, software, trolled by the Taliban’’ means the territory technology (including technical data), or referred to as the ‘‘Islamic Emirate of Af- services to the territory of Afghanistan con- ghanistan,’’ known in Pashtun as ‘‘de Afghan- trolled by the Taliban or to the Taliban or istan Islami Emarat’’ or in Dari as ‘‘Emarat persons designated pursuant to this order is Islami-e Afghanistan,’’ including the fol- prohibited; lowing provinces of the country of Afghani- (c) the importation into the United States stan: Kandahar, Farah, Helmund, Nimruz, of any goods, software, technology, or serv- Herat, Badghis, Ghowr, Oruzghon, Zabol, ices owned or controlled by the Taliban or Paktiha, Ghazni, Nangarhar, Lowgar, persons designated pursuant to this order or Vardan, Faryab, Jowlan, Balkh, and Paktika. from the territory of Afghanistan controlled The Secretary of State, in consultation with by the Taliban is prohibited; the Secretary of the Treasury, is hereby au- (d) any transaction by any United States thorized to modify the description of the person or within the United States that term ‘‘territory of Afghanistan controlled by evades or avoids, or has the purpose of evad- the Taliban’’; ing or avoiding, or attempts to violate, any (e) the term ‘‘United States person’’ means of the prohibitions set forth in this order is any United States citizen, permanent resi- prohibited; and dent alien, entity organized under the laws

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of the United States (including foreign gency with respect to the threat to the United branches), or any person in the United States posed by the actions and policies of States. the Afghan Taliban and have issued an execu- Sec. 5. The Secretary of the Treasury, in tive order to deal with this threat. consultation with the Secretary of State and The actions and policies of the Afghan the Attorney General, is hereby authorized Taliban pose an unusual and extraordinary to take such actions, including promulgation threat to the national security and foreign of rules and regulations, and to employ all policy of the United States. The Taliban con- powers granted to me by IEEPA as may be tinues to provide safe haven to Usama bin necessary to carry out the purposes of this Ladin allowing him and the Al-Quida organi- order. The Secretary of the Treasury may re- zation to operate from Taliban-controlled delegate any of these functions to other offi- territory a network of terrorist training camps cers and agencies of the United States Gov- and to use Afghanistan as a base from which ernment. All agencies of the United States to sponsor terrorist operations against the Government are hereby directed to take all United States. appropriate measures within their authority to carry out the provisions of this order. Usama bin Ladin and the Al-Qaida organi- Sec. 6. Nothing contained in this order zation have been involved in at least two sep- shall create any right or benefit, substantive arate attacks against the United States. On or procedural, enforceable by any party August 7, 1998, the U.S. embassies in against the United States, its agencies or in- Nairobi, Kenya, and in Dar es Salaam, Tan- strumentalities, its officers or employees, or zania, were attacked using powerful explosive any other person. truck bombs. The following people have Sec. 7. (a) This order is effective at 12:01 been indicted for criminal activity against the a.m. Eastern Daylight Time on July 6, 1999. United States in connection with Usama bin (b) This order shall be transmitted to the Ladin and/or the Al-Qaida organization: Congress and published in the Federal Reg- Usama bin Ladin, his military commander ister. Muhammed Atef, Wadih El Hage, Fazul William J. Clinton Abdullah Mohammed, Mohammed Sadeek Odeh, Mohamed Rashed Daoud Al-Owhali, The White House, Mustafa Mohammed Fadhil, Khalfan Khamis July 4, 1999. Mohamed, Ahmed Khalfan Ghailani, Fahid Mohommed Ally Msalam, Sheikh Ahmed [Filed with the Office of the Federal Register, 12:38 p.m., July 6, 1999] Salim Swedan, Mamdouh Mahmud Salim, Ali Mohammed, Ayman Al-Zawahiri, and NOTE: This Executive order was released by the Khaled Al Fawwaz. In addition, bin Ladin Office of the Press Secretary on July 6, and it and his network are currently planning addi- was published in the Federal Register on July 7. tional attacks against U.S. interests and na- tionals. Letter to Congressional Leaders Since at least 1998 and up to the date of Reporting on the National the Executive order, the Taliban has contin- Emergency With Respect to the ued to provide bin Ladin with safe haven and Taliban security, allowing him the necessary freedom to operate. Repeated efforts by the United July 4, 1999 States to persuade the Taliban to expel bin Dear Mr. Speaker: (Dear Mr. President:) Ladin to a third county where he can be Pursuant to section 204(b) of the Inter- brought to justice for his crimes have failed. national Emergency Economic Powers Act, The United States has also attempted to 50 U.S.C. 1703(b) and section 301 of the Na- apply pressure on the Taliban both directly tional Emergencies Act, 50 U.S.C. 1631, I and through frontline states in a position to hereby report that I have exercised my statu- influence Taliban behavior. Despite these ef- tory authority to declare a National emer- forts, the Taliban has not only continued, but

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has also deepened its support for, and its re- will likewise allow humanitarian, diplomatic, lationship with, Usama bin Ladin and associ- and journalistic activities to continue. ated terrorist networks. I have designated in the Executive order, Accordingly, I have concluded that the ac- Mullah Mohhamad Omar, the leader of the tions and policies of the Taliban pose an un- Taliban, and I have authorized the Secretary usual and extraordinary threat to the national of State to designate additional persons as security and foreign policy of the United Taliban leaders in consultation with the Sec- States. I have, therefore, exercised my statu- retary of the Treasury and the Attorney Gen- tory authority and issued an Executive order eral. which, except to the extent provided for in The Secretary of the Treasury is further section 203(b) of IEEPA (50 U.S.C. 1072(b)) authorized to designate persons or entities, and regulations, orders, directives or licenses in consultation with the Secretary of State that may be issued pursuant to this order, and the Attorney General, that are owned and notwithstanding any contract entered or controlled, or are acting for or on behalf into or any license or permit granted prior of the Taliban or that provide financial, mate- to the effective date: rial, or technical support to the Taliban. The —blocks all property and interests in prop- Secretary of the Treasury is also authorized erty of the Taliban, including the Taliban to issue regulations in the exercise of my au- leaders listed in the annex to the order that thorities under the International Emergency are in the United States or that are or here- Economic Powers Act to implement these after come within the possession or control measures in consultation with the Secretary of United States persons; of State and the Attorney General. All Fed- —prohibits any transaction or dealing by eral agencies are directed to take actions United States persons or within the United within their authority to carry out the provi- States in property or interests in property sions of the Executive order. blocked pursuant to the order, including the The measures taken in this order will im- making or receiving of any contribution of mediately demonstrate to the Taliban the se- funds, goods, or services to or for the benefit riousness of our concern over its support for of the Taliban; terrorists and terrorist networks, and increase —prohibits the exportation, re-expor- the international isolation of the Taliban. The tation, sale, or supply, directly or indirectly, blocking of the Taliban’s property and the from the United States, or by a United States other prohibitions imposed under this execu- person, wherever located, of any goods, soft- ware, technology (including technical data), tive order will further limit the Taliban’s abil- or services to the territory of Afghanistan ity to facilitate and support terrorists and ter- under the control of the Taliban or to the rorist networks. It is particularly important Taliban; and for the United States to demonstrate to the —prohibits the importation into the Taliban the necessity of conforming to ac- United States of any goods, software, tech- cepted norms of international behavior. nology, or services owned or controlled by I am enclosing a copy of the Executive the Taliban or from the territory of Afghani- order I have issued. This order is effective stan under the control of the Taliban. at 12:01 a.m. Eastern Daylight Time on July The Secretary of the Treasury, in consulta- 6, 1999. tion with the Secretary of State, is directed Sincerely, to authorize commercial sales of agricultural commodities and products, medicine and William J. Clinton medical equipment, for civilian end use in the territory of Afghanistan controlled by the NOTE: Identical letters were sent to J. Dennis Taliban under appropriate safeguards to pre- Hastert, Speaker of the House of Representatives, vent diversion to military, paramilitary, or and Albert Gore, Jr., President of the Senate. This terrorist end-users or end-use or to political letter was released by the Office of the Press Sec- end-use. This order and subsequent licenses retary on July 6.

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Statement on the National [Laughter] So I feel right at home. [Laugh- Emergency With Respect ter] I don’t know whether Bob Koerber and to the Taliban the people at Waterfield are insured against July 6, 1999 heatstroke by strangers happening in along the way, but let me say that I am delighted I have signed an Executive order imposing to be here today. I’ve had a good day already. financial and other commercial sanctions on And I’ve got a large group with me, and the Afghan Taliban for its support of Usama I can’t mention them all, but I’d like to men- bin Ladin and his terrorist network. The tion a few of them. First I want to thank Taliban has allowed the territory under its Secretary Slater, who is, as all of you know, control to be used as a safe haven and base also from Arkansas and worked with me on of operations for Usama bin Ladin and the the Delta commission. I want to thank our al-Qaida organization, who were responsible Secretary of Agriculture, Dan Glickman; our for the bombings of our embassies in Secretary of Labor, Alexis Herman, who is Nairobi, Kenya, and Dar es Salaam, Tan- here with me; our SBA Administrator Aida zania, last year, murdering 12 Americans, Alvarez. Reverend Jackson, thank you for nearly 300 Kenyans and Tanzanians, and being here. wounding another 5,000. To this day, bin I’d like to thank David Bronczek from Ladin and his network continue to plan new FedEx; Jack Haugsland from Greyhound. attacks against Americans, without regard for We’ll introduce our panelists later. I’d also the innocence of their intended victims or like to say a special word of thanks to Lieu- for those non-Americans who might get in tenant Governor Ronnie Musgrove and his the way of his attack. The United States has family. They’re here, and we thank him for tried repeatedly, directly and working with his interest in the development of the Delta. other governments, to persuade the Taliban Our Congressmen, Bennie Thompson, to expel bin Ladin to the United States for from this district, thank you. And I under- trial or, if that is not possible, to a third coun- stand Congressman Ronnie Shows from Mis- try where he will face justice for his crimes, sissippi is also here—Ronnie is standing up and to end the safe haven it gives to bin there; thank you. And we have two visitors Ladin’s network, which lives and trains in who have come from a long way away to be Taliban-controlled Afghanistan. These ef- with us, Congressman Jim Clyburn from forts have failed. The Executive order I have South Carolina and Congressman Paul signed will deepen the international isolation Kanjorski, all the way from Pennsylvania, of the Taliban, limit its ability to support ter- down here. Thank you very much. rorist networks and demonstrate the need to And we thank Attorney General Mike conform to accepted norms of international Moore for being here, and all the other peo- behavior. The order does not affect humani- ple from Mississippi who are here. tarian aid, food, and medical supplies for ci- Let me say again to Bob Koerber and all vilian use. It is not aimed at the people of the folks here at Waterfield, we thank you Afghanistan, but at the Taliban. Those who nurture terrorism must understand that we for giving us a chance to both tour this plant will not stand by while those whom they pro- and to camp out in some of your space. tect target Americans. And I would like to be very brief. I’ve learned to attenuate these remarks of mine. Yesterday it was 100 degrees in Hazard, Ken- Remarks in a Roundtable Discussion tucky; we had 10,000 or 15,000 people out- on Investment in the Mississippi side. And I said I don’t believe I better give Delta Region in Clarksdale, this speech I was going to give. Mississippi Hello, Governor Mabus. It’s nice to see July 6, 1999 you. Welcome. Thank you very much for being here. And I think my friend William The President. Thank you. Please be seat- Winter is here. Governor Winter, are you ed. Well, it’s hot as a firecracker in here. here somewhere? He met me at the airport.

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So anyway, I talked for about 5 minutes, and exempt business group. It is a real success I’d like to do that. story. Just since 1994, it’s given financial or I just want to tell you exactly why we’re technical assistance to more than 600 compa- here. First of all, the people in the Delta nies, including Delta Laundry and Com- know better than anybody else that while this puters here in Clarksdale. country has had an unbelievable run—we’ve Now, we set these operations up all over had the longest peacetime expansion in our the country. Overall, the ECD here has history, nearly 19 million jobs since the day helped to generate more than 5,000 jobs and I took the oath of office. We have the lowest $200 million in annual sales. Bill Bynum, the recorded rates ever of unemployment among CEO and president of ECD is here. We African-Americans and Hispanics. We have thank him for being here today. the highest rate of homeownership ever. We Today corporations represented here with have a million kids lifted out of poverty. me are going to invest $14 million more in Now, having said all that, in the Delta, the the ECD, so they’ll have more money to loan poverty rate is much higher than the country out to people here to create more jobs. as a whole; in this county, it’s over twice as Today, around the country, there will be high. The unemployment rate is higher than about $150 million more announced to be the national average, and the investment rate invested in organizations like this. is lower. In addition to that, I’m trying to get Con- Now, a lot of you—I remember when I gress to pass a bill which will give tax incen- was out on a barge in the Mississippi River tives, tax credits, and loan guarantees to peo- outside Rosedale with Ray Mabus back in ple to invest in the Delta and other poor the mid-eighties, and we signed this agree- areas of America, just like they get today to ment with the then-Governor of Louisiana invest in poor areas around the world. I think about all the things we wanted to do with that it’s a good thing that we encourage peo- the Delta. And then we worked on the Delta ple to invest in Africa, Latin America, and commission for all those years. A lot of good the Caribbean, but they ought to have the things have happened here, and I want to same incentives to invest in the Mississippi talk a little about some of them. But I want Delta and Appalachia and the Native Amer- you to know I am making this tour of Amer- ican reservations and the inner cities. That ica for one simple reason: I want everybody is what we’re trying to do here. We’re trying in America to know that while our country to close what Reverend Jackson calls the ‘‘re- has been blessed with this economic recov- source gap.’’ ery, not all Americans have been blessed by Now, let me say, we’ve got a lot of other it, that it hasn’t reached every place. challenges in the Delta. We have a terrible I want our country to know that there are crisis in American agriculture today. Last great opportunities out here for investment year we came up with billions of dollars to for jobs in America. I want them to know try to keep our farmers going. This year we’re what we have done already to make it easier going to have to do it all over again. And for people to make the most of those oppor- we’ve got a lot of other problems. But fun- tunities and what we’re still trying to do. damentally, what I want America to know is Now, let me say, ever since I became that every place in the country, and today President, I have done what I could to in- this place, is full of good people, capable of crease investment in undeveloped areas doing good work, who can be trained to do through the empowerment zones, which give any kind of work. And we are going to do tax credits and put tax money into distressed everything we can in the Government to give areas, through the enterprise communities, the financial incentives necessary for people through getting banks to more vigorously ap- to invest here. proach the Community Reinvestment Act, And I want to make the same point I made and setting up community development fi- yesterday: Everybody in America has a selfish nancial institutions or supporting those that interest now in developing the Delta. Why? are already in business, like the Enterprise Because most economists believe that if Corporation of the Delta. It’s a private, tax- we’re going to keep our economic recovery

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going without inflation, the only way we can One of the reasons that I’m trying so hard possibly do it is to find more customers for to pass this legislation is not every place in our products and then add more workers at America can be in an empowerment zone, home. If you come here, you get both in the even if we keep increasing them every year. same place. You get more workers and more So what I want to do is to make every area consumers. So it’s good for the rest of Amer- in America that needs an investor equally eli- ica as well. gible to get the investors’ attention by being So again, I say I am delighted to be here. able to get these kinds of tax benefits, so we I had a wonderful time in Memphis last can get more money into these development night, but I ate too much. I’m sorry it’s so corporations and then have equal tax incen- hot, but I hope nobody passes out. And I tives for investors to go into high unemploy- want to give Secretary Slater now a chance ment areas—those two things, if we have to talk to our panelists, and then I want all enough people like you who are as good as of you to think about, when we leave here, it as you have been, I think will make a huge what we can do to show people the oppor- difference. I think it will really, in the next tunity that’s here now, and what you could 5 or 6 years, would make a breathtaking dif- do to help me pass, on a bipartisan basis, ference, because people are out here looking the necessary tax incentives and loan guaran- at these markets now. And I want to thank tees to say to any investor, anywhere in you. America, if you come to the Mississippi [The discussion continued.] Delta, you can get at least a good a deal as you could investing anywhere else in the The President. Let me say this very brief- world. And we’re right here at home, and ly. I was there when you started, and I was we need you. delighted when I heard you were going to Thank you very much. be on the program. I wish we’d had time today—we don’t—to tell everybody the fas- [At this point, the discussion proceeded.] cinating story of how you got started, how you found the equipment to do the brown The President. I just want to emphasize rice in the first place. And someday you for everybody who is here listening, because ought to write it up, because no one who a lot of you may be able to come to Bill with understands what was going on in America a good idea, there are—it’s not just that there at the time would believe it. And it’s a real is not enough money available in this area tribute to your initiative. And I’m glad you’re for good investments, someone has to decide still doing well and glad you’re still growing. what’s a good investment. And what he has Thank you for being here today. Thank you. done is to basically go out and get money from other people who, on their own, would [The discussion continued.] never have the time or effort or maybe even The President. Let me say, I’m delighted the inclination to make these investments, that you’ve done so well over these years but they trust them to do it—including our since you began in Arkansas. I remember community development fund, which, as you when you planted roots in Pine Bluff. I just heard, has given him $4.5 million. think it’s worth pointing out that the South Hillary and I, when we were in Arkansas, Shore Bank of Chicago, which financed you, helped to set up the Southern Development was really the first great community develop- Bank in Arkansas, as you know, so we believe ment bank in the United States. And they in this. In addition to that, I want to empha- were inspired, among others, by a man size one other thing. In the empowerment named Muhammad Yunus from Bangladesh, zone program that the Vice President has run who has now made millions of loans to poor, for us over the last 6 years, people who invest poor village people in Bangladesh through there can get substantial tax benefits for in- the bank you set up. vesting, and then they get tax benefits for Hillary and I had some contact with him; hiring people. But they don’t get them if that’s what led to the establishment of the they’re outside of these zones. bank in Arkadelphia and to my belief that

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we in the National Government ought to do omy in our lifetime, when will we ever get more to support people like Bill. I think— around to it? again, you’ve just heard now three stories, And remember—put yourself in my posi- and two of them involve people who have tion. I sit in Washington all the time, trying had to get credit. A lot—I always say one to think about how can we keep this eco- of Clinton’s laws of politics is, when some- nomic recovery going, adding more jobs, rais- body tells you that a problem is not a money ing incomes, without having inflation. If we problem, they’re almost always talking about get inflation, then the Federal Reserve will someone else’s problem, not their own. To have to raise interest rates so much the eco- a great extent, this is a money problem. You nomic recovery will slow down. have all these talented people and all these The only way to do it—I will say again good ideas; there is a pretty even distribution to all of America—the only way to do it is of human resources and ability in this whole more customers, which then makes possible world, but there is not an even distribution more employees, when you can do that with of access to capital. And that’s what it is we’re higher productivity and no inflation. The best trying to fix. So I thank you. place in America to do that is a place which has not yet felt recovery. This is a big deal. [The discussion continued.] I want to thank all of our business leaders The President. You have an announce- for coming. And all of our great entre- ment, right? Okay. You’re being way too preneurs here in the Delta, I want to thank modest. Now, you know, this lady is the as- you. I know we could stay here until tomor- sistant plant manager here. According to my row if we could all keep breathing. notes, she also is the mother of five children. I do want to point out that except for the When this place was in bankruptcy, they took occasional reverend of the cloth and the odd it out, and they’ve turned it around. They’re politician, the head of the electric utility is doing good business; they’re expanding their the only guy still wearing his coat because work force. And I think what we need, frank- he wants you to use more juice. [Laughter] ly, are more people that have this particular And I think that is very impressive. I want expertise, particularly in the Delta, because to thank our friend from Greyhound because there’s more than one place like this. we may always need some people to be able Our host was telling us there’s another to get to and from jobs that aren’t in the place across the river in Arkansas that he’s small towns of rural America but who want been looking at now. If we had a core of to live in rural America. That’s been one of people who had this skill to go with what the big challenges Secretary Slater has tried our local venture capitalist and banker here to face with welfare reform, even; trying to is doing for us, we could really do some good. make sure people who live in the inner cities But I think we ought to recognize that what can at least get to the suburbs, or who live these people have done here and the jobs in small towns and get to a big city so they that they’ve given folks the opportunity to can take a job without having to undermine hold is quite important and could be a good their ability to be good parents. model for others in the Delta. So I thank And I want to thank my friend Bob Cabe you for what you’ve done. from Blue Cross. You need to know that in our former lives, we were both lawyers. And [The discussion continued.] he’s a very special economic development ex- The President. Well, I know we’ve got to pert for me, because in 1981, I was the wrap up. If you don’t remember anything youngest ex-Governor in the history of Amer- else when you leave, remember what Cathy ica with very limited future prospects, and said—not just the $500 million, although he and his firm offered me a job. So I am that’s real money even in 1999; that’s very living proof that economic development impressive. This is a good business oppor- works, thanks to Bob Cabe, and I thank you tunity here. If we cannot fully develop the very much. And I want to thank, again, all Delta now when we have the strongest econ- these people for their wonderful work.

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The story needs to go out across America. been. And we can’t rest until every American This is a good investment. This is a good deal. who wants to work has a chance to get a good We will help you. We will help you. We have education, a good job, and raise a family in institutions to help you. We have tax relief a strong community. to help you. And more and more, our finan- And what we’re proposing to do is simply cial institutions are coming up with the to say to the investors of the country, take money. But America needs to wake up and a look at the Delta, take a look at these other recognize that the best new market for Amer- places in America that haven’t grown as they ican products and for new American invest- should have, and we will give you the same ment is right here in the U.S. of A. tax and other incentives to invest in American Thank you very much, and God bless you. new markets that we give you today to invest around the world. I think we ought to give NOTE: The President spoke at 10:25 a.m. at the people the same incentive to go to the Delta. Waterfield Cabinet Co. In his remarks, he re- That’s the message—you help us get the ferred to Robert C. Koerber, president and chief executive officer, and Cora Porter, assistant plant message out. manager, Waterfield Cabinet Co.; civil rights lead- Good luck, God bless you, and thank you er Jesse Jackson; David J. Bronczek, executive vice for making me feel welcome. Thank you. president and chief operating officer, Federal Ex- press; Jack W. Haugsland, executive vice president NOTE: The President spoke at 2:09 p.m. at Clarks- and chief operating officer, Greyhound Lines, dale Airport prior to departure for East St. Louis, Inc.; Lt. Gov. Ronnie Musgrove, State Attorney IL. A tape was not available for verification of General Mike Moore, and former Governors Ray the content of these remarks. Mabus and William Winter of Mississippi; former Gov. Charles (Buddy) Roemer of Louisiana; William J. Bynum, president, Enterprise Corpora- tion of the Delta; Muhammad Yunus, founder and Remarks to the Community chief executive officer, Grameen Bank, Ban- in East St. Louis, Illinois gladesh; Catherine P. Bessant, president, Com- munity Development Banking Group, Bank of July 6, 1999 America; J. Wayne Leonard, chief executive offi- cer, Entergy Corp.; and Robert D. Cabe, execu- Thank you. Well, ladies and gentlemen, I tive vice president for legal, governmental rela- used to think that I was reasonably astute tions, and community services, Arkansas Blue at public affairs, but I don’t have any better Cross & Blue Shield. Former Governors Mabus sense than to get up here and try to speak and Roemer were vice chairs of the now-defunct behind Mayor Powell, Cathy Bessant, and Lower Mississippi Delta Development Commis- Jesse Jackson. I don’t know how smart I am sion. A tape was not available for verification of the content of these remarks. today. [Laughter] Let me say to all of you, it is wonderful to be here. Madam Mayor, thank you for Remarks on Departure From making us feel so welcome and for your ster- Clarksdale ling leadership. I’m delighted to be here with July 6, 1999 Jackie, your hero, and my friend who is all of our heroes. Thank you. New Markets Initiative Thank you, Dave Bernauer, for this won- I will be very brief. It’s hot. You’ve waited derful Walgreens store. I’m going to go in for me a long time, and I appreciate it. I’m and shop in a minute—add to the local com- glad to be back here. I’m glad to be in the munity. Thank you, Mel Farr, for bringing Delta. I’m glad to have brought business jobs and opportunities and cars, even in 2 leaders from all over the country here today. months’ installments, to every community in We are trying to send a message to Amer- this country. [Laughter] Thank you. Thank ica that good people live here; they have not you, Reverend Jackson, for believing that we fully participated in this economic recovery could keep hope alive in every city and rural that has swept our country and lifted up area in this country, and it could be good America’s economy as strong as it’s ever business to do so.

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I want to thank some others who are with So this is the first chance, my first stop us here today—Joe Stroud of Jovon Broad- in Illinois since the tragic string of shootings casting; my good friend Al From, the Demo- in Illinois and Indiana these last couple of cratic Leadership Council; David Wilhelm, days, that have come to end with the appar- the former Chairman of the Democratic ent suicide of the alleged gunman. Now, I Party from Illinois, who is here with me don’t want to say a lot, but I think it’s impor- today. I want to thank Senator Durbin and tant to note that while we have to wait for Congressman Costello—two of the ablest, all of the details to come in, the early reports finest people in the United States Congress. indicated that this shooting spree against I want to tell you that they are joined here Jews, Orthodox Jews; against the young Asian today by other Members of Congress, includ- students; taking the life of a former basket- ing Congressman Jim Clyburn, who came all ball coach at Northwestern, an African- the way from South Carolina; Congressman American—all were motivated by some blind Paul Kanjorski from the State of Pennsyl- racial hatred against anybody who didn’t hap- vania; and Congressman Dale Kildee from pen to be white. Michigan—all of whom care about this com- Isn’t it ironic that this occurred during the munity and communities like it all across time we celebrated the birth of our Nation America. I thank them. on the Fourth of July? That action was a re- And I want to thank your neighboring buke to the very ideals that got us started. mayor, Clarence Harmon, for coming over They’re also a stern reminder to us that even from St. Louis, and your former mayor, Gor- as we celebrate this, even as we stand up don Bush, for being here with me. And I against racial and ethnic and religious hatred want to thank Secretary Cuomo, Secretary in Kosovo, in Northern Ireland, and the Mid- Glickman, Secretary Slater, and all the other dle East and Africa, we’ve still got work to people from the administration. do here at home. We have had a great time these last 2 days, going across America. We are going to finish So I say to you, I want to get back to the this day, first by shopping at Walgreens, and celebrating, but I issue an appeal here from then we’re going to get on an airplane and East St. Louis to every community and every fly to South Dakota, where we will begin to- citizen in this country: We must search the morrow at the Pine Ridge Indian Reservation hearts of our citizens and search the strength in South Dakota. of our communities, that Congress should So from Appalachia to the Mississippi pass the hate crimes legislation, but we Delta to East St. Louis to Pine Ridge—it has should rid our hearts of hatred immediately. been a wonderful trip. But let me ask you Now, I want to tell you what got us going something. If you look around this crowd on this. In 1992, when I ran for President, today, I have to make—this is a happy day, I came to East St. Louis, and I said I wanted a happy day. But I want to say one serious to create a country in the 21st century where thing off of this subject today, because of a there was opportunity for every citizen, re- remark that was made earlier by Cathy, that sponsibility from every citizen, and a commu- I believe in community development—em- nity of all American citizens. I said that we phasis community. ought to have a new role for Government, You have been very good to me, to the that Government couldn’t solve all the prob- First Lady, to Vice President Gore, and Mrs. lems, but walking away from them did not Gore. You have supported our initiatives, and work very well, either; and that we had to especially, the Vice President’s leadership of focus on creating the conditions and giving all of our community development. But people the tools to make the most of their what’s the first thing that makes it work? own lives and to get together across lines that Look around this crowd today. We have peo- had divided them for too long. ple from all kinds of backgrounds, all dif- Goodness knows, in the inner cities and ferent colors, all different religions. Every- the rural areas of our country, lines have di- body—all different ages, working for some- vided those who worked hard but had no thing good. money and those who had plenty of money

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but didn’t believe it could be very well spent which means more money being spent here in the inner city or in rural areas. by the Government, more tax incentives for Now, if you look at what happened since, the private sector to put businesses here and we see in this community both poverty and to hire the people from East St. Louis and great promise—retail returning, new jobs, give them good jobs. new residents, new hope, Walgreens putting Senator Durbin, Congressman Costello, up 400 stores across America, many of them and every Member of the Congress here is in inner-city areas—but still, there are many committed to creating that second round of unmet needs and unmet opportunities. empowerment zones and funding them this You heard what Cathy said about opportu- year. We need help from Republicans and nities. Let me tell you, the economists talk Democrats alike. This is not a party issue. about something in our inner cities called the All Americans benefit when all Americans purchasing power gap. Let me tell you what work. that means. That means most people in East Now, let me tell you why else we came St. Louis, even though the unemployment here today. We want to make two points rate is higher than the national average, most which all the previous speakers have made. people get up and go to work every day. And I just want to be very explicit. Starting with if you take the money that you earn here what the mayor said about location, location, as against the money you are able to spend location, accessibility—boy, that was a good here because of the jobs that are here and rap, wasn’t it? I like that. That was good. the stores that are here, in America as a [Laughter] The first point we want to make whole, there is 25 percent more money is, when the Walgreens’ president comes, or earned than spent in the inner cities. In Los when an executive from Bank of America Angeles, it’s 35 percent; in East St. Louis, comes, or when Mel Farr comes, and comes it is 40 percent. So you can handle this to places like this or the Mississippi Delta Walgreens and a lot more besides, and we or Appalachia, the other places we’re going, want to see them coming here. is, hey, there are business opportunities out And we thank Bank of America for the li- here. If you’ve got people who want to go brary; and we thank those involved in the to work and people with money to spend, hotel, the bank, the homes being built near and they’re both in the same place, it’s a good here. We also want you to know that we want place to invest. to do our part. Secretary Cuomo’s Housing The second thing we’re doing is promoting and Urban Development block grants, along what you have heard referred to as the new with Bank of America and many department markets initiative. Now, let me just tell you stores, are helping Jackie build the Jackie what that is. That’s a bill we’re going to put Joyner-Kersee Center near here. before the Congress that says that if people So this is what Vice President Gore and invest in any high unemployment, high pov- I have tried to do with our empowerment erty area, anywhere in America, inside or zones and our community banks and our vig- outside one of our empowerment commu- orous enforcement of the Community Rein- nities, they can get a tax credit for the money vestment Act. It says you’re supposed to loan they put up, and they can go to the bank money everywhere in America. That law has and borrow money and have it guaranteed— been on the books for 22 years, but over 95 a guaranteed loan by the Federal Govern- percent of the money loaned under it, bil- ment, which will lower the interest rates, lions of dollars, has been loaned since the which will mean it will be much cheaper for Clinton-Gore administration has been in of- people to invest in communities like East St. fice. And I am proud of that. Louis than it otherwise would be. We made East St. Louis an enterprise Now the Government is not going to do community in our first round of empower- it, nobody is going to put any money here ment zones and enterprise communities way if they think they’re going to lose it. If you back in 1994, and because you have done put up $100 and you invest it and I give you so well, East St. Louis is designated as an a 25 percent tax credit, if it’s a bad invest- empowerment zone for our second round, ment, you still lose $75. But it makes it more

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likely that people will do it. It makes it more ployment rates under 41⁄2 percent nationwide likely that they will take a look. It makes it without having inflation and high interest more likely that you will build the kind of rates, which would wreck everything. When relationships which will make people know we started, no one thought so. you and trust you and want to build a com- But, you know, all of these young, techno- mon future with you. And that is what we’re logical geniuses are figuring out all this new trying to do. It is not a handout, but it is computer technology, and it’s rifling through darn sure a hand up, and you are entitled what we all do, and it’s making us more pro- to it. ductive. And we’re doing a good job. And let me say to all of you, it is something But now I say to myself every day when that is good for the rest of America. We’ve I get up, now what can I do to keep this had almost 19 million new jobs; the longest going? The only way to keep it going—more peacetime expansion in history; the lowest growth with no inflation; more jobs and high- African-American and Hispanic unemploy- er wages without bringing it to a halt—is to ment rates ever recorded in this country to date—but the unemployment rates are still have new people working and new people higher than they are for the rest of the coun- buying, new people producing. try. Incomes are rising, but they’re still lower Where are those people? Those are the than they are for the rest of the country. people you move from welfare to work. There is room to grow, room to learn. Those are the people who are disabled—and Look, we’re all going to have to work hard we’re going to let them keep their health in- at this. Nobody’s got all the answers. There surance when they go into the workplace, so is no magic wand. But we know one thing. they can move into the workplace. And most People make these investments one at a time, important of all, those are the people in the just like Mel Farr sells his cars, one at a time. inner cities and the rural areas, on the Native You can only build one Walgreens on this American reservations that have been passed spot. And somebody had to come up with by by this recovery. the money. Somebody had to make the deci- America has been blessed by this eco- sion. Somebody’s got to hire all the people nomic recovery. Now we are determined to that work here. Somebody’s got to train see that all Americans are blessed by it as them. Somebody’s got to make all these deci- we move into the 21st century. sions. But what we can do is to create an Thank you, and God bless you. environment in which more people will want to hold hands with you and walk into the 21st century, so that nobody is left behind, NOTE: The President spoke at 5:27 p.m. outside and we all go forward together. Walgreens at the State Street Shopping Center. You know, in 1960, Look magazine said In his remarks, he referred to Mayor Debra East St. Louis was an all-American city. It Powell and former Mayor Gordon Bush of East was because of stockyards and shipping St. Louis; Catherine P. Bessant, president, Com- munity Development Banking Group, Bank of yards. It was because of private enterprise. America; civil rights leader Jesse Jackson; athlete The Government can help, but private enter- Jackie Joyner-Kersee, president, Elite Inter- prise will make East St. Louis that all-Amer- national Sports Marketing; David Bernauer, presi- ican city again, if we go forward together. dent and chief operating officer, Walgreen Co.; And I just want to make one last point Mel Farr, Sr., president, Mel Farr Automotive to everybody else in America who’s looking Group; Joseph Stroud, president, Jovon Broad- at this. I spent a lot of time as your President, casting, Inc., Mayor Clarence Harmon of St. now, trying to figure out, how can I keep Louis, MO; and murder victim Ricky Byrdsong, this economic good time going? When we former head basketball coach, Northern Univer- started, nobody believed we could have an sity, and his alleged killer, Benjamin Nathaniel economic expansion that would go on this Smith. A portion of these remarks could not be long. When we started, no conventional verified because the tape was incomplete. economist believed you could have unem-

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Interview With Ron Insana of kill the recovery, so everybody’s been trying CNBC’s ‘‘Business Center’’ in to avoid it. Clarksdale, Mississippi Well, I think about that all the time. And it seems to me that the way to keep America’s July 6, 1999 economy growing without inflation is to sell more products overseas and find more con- New Markets Initiative sumers and workers at the same time here Mr. Insana. Mr. President, this trip and at home. And there are only—there are a your new markets initiative in some ways couple of options. You can bring more people have already been compared to Lyndon from welfare or from the ranks of the dis- Johnson’s War on Poverty, Bobby Kennedy’s abled into the work force, or you can go to swing through Appalachia. How will this pro- these areas where you invest in them and gram work where some of the other Govern- you get more consumers and more workers ment programs on poverty have failed in the at the same time. And I think this is terribly past? important. The President. Well, first of all, I think Mr. Insana. What specific items will be it’s important to recognize that this is dif- included in the legislation to advance those ferent because we don’t say the Government goals? What kind of tax credits? can solve all these problems, but we do say The President. Well, the big ideas in the the Government can no longer ignore them. legislation are a tax credit of up to 25 percent And, in fact, we’ve been working on them for people who invest in vehicles that will for 61⁄2 years, ever since I took office. be creating businesses or expanding busi- This is a classic example, this approach to nesses in high-unemployment, under- new markets, of the New Democratic or developed areas. In addition to that, once you Third Way philosophy that I articulated back get into those vehicles, then you would be in 1991 and 1992. That is, Government’s role eligible to borrow $2 for every $1 invested is to create the conditions for success, give and have the money borrowed be subject to people the tools they need to succeed, and a Government loan guarantee, which would then, in effect, empower people to make the mean the interest rates would be much, most of it. much lower. So by those two things, you But we recognize if you look at—go back lower the relative risk of investing in these to the War on Poverty, it did a lot of good new markets. in terms of giving children preschool and But we’ve seen—you heard the person feeding hungry children and giving them ac- from Bank of America say today, we heard cess to health care. But in the end, if you the gentleman from a local bank in Kentucky want these communities to be self-sustaining, yesterday, or the people from Aetna or these they have to get private-sector capital with other companies say, ‘‘These are good invest- private-sector jobs, and they have to prove ments; we can make money here.’’ So if you that they can compete for it, they can win lower the relative risk of getting in in the it, and that people can actually make a profit first place and, in effect, try to provide for investing in these places and that it will be the whole Nation what now you can find in profitable to put people to work. the empowerment zones that the Vice Presi- And because I believe that very passion- dent’s worked so hard to manage over the ately, especially now—you know, there was last 6 years, I think we can get a lot more all this big discussion in business circles and growth here. the people that watch your program, there was all this big discussion over the last few Republican Proposal weeks about would the Fed raise interest Mr. Insana. Now, House Speaker Dennis rates or not. And it was like the fifth reincar- Hastert sent you a letter over the weekend nation of how much can we grow and how attacking poverty from a slightly different ap- low can unemployment get before we have proach with respect to more tax-cut-type in- this big explosion of inflation which then centives. Do you have common ground with we’ll have to clamp down, which will then him where you can fashion some——

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The President. Well, I want to have a more high productivity-driven growth with- chance to evaluate it. It would seem to me, out inflation than anyone dreamed. though, that we would have—this is some- The trick is if—to go back to what Barney thing that Democrats and Republicans all Frank said—what he wants is to keep the agree on. I mean, our approach is a com- economy going, to keep the growth going pletely private-sector approach. We do have, until middle and lower middle income work- in addition to the big tax cuts I talked about, ing people can get their wages up to over- we have a venture capital approach where come the stagnation of 20 previous years and we want to try to do a little more to get real until we can get more people caught up in venture capital out there. You heard the lady the areas where the recovery hasn’t occurred. testify today that she went from being an em- That’s why, it seems to me, the most impor- ployer to a business owner, and she had no tant thing to do is to have initiatives like this equity so she had to have venture capital to which give you concrete examples of how you start. So we do that. And we have a little can have growth without inflation. bit of technical assistance to help commu- nities and businesses that don’t have any way Tax Cuts of getting the information they need. Mr. Insana. Now, Republicans would But apart from that, I think we ought to argue that one other way to extend the recov- be able to find common ground. I can’t imag- ery here would be to cut taxes even further. ine that Republicans wouldn’t want to do And you hinted last week in USA Today that this. This has got to be good for Republican if you got what you wanted on Medicare re- businesspeople, to have a better chance to form and prescription drug benefit subsidies, invest in areas where you can have more that you might go along with an expanded growth without inflation. list of tax breaks. Can you elaborate on that? What would you accept in exchange for a Medicare deal? Interest Rates The President. Let me make it clear. Mr. Insana. Now, last week, some con- What I said was that, obviously, we would gressional Democrats led by Barney Frank be working together on all the appropriations came out and suggested that if the Fed raised issues and expenditure of money, if we did interest rates, something you mentioned a first things first. But I think that it’s quite minute ago, that it would hurt the poor, peo- important that the Republicans say how ple you’ve been visiting here over the last they’re going to pay for all these things. You couple of days. Is that what the Fed’s doing, know, they say they want even larger in- or is the Fed extending a noninflationary eco- creases for defense than I do, and I’ve pro- nomic environment by tapping on the brakes posed substantial increases. Then they want a little bit? huge increases in tax cuts. Do they propose The President. Well, I think that plainly to keep us in debt? Do they propose to basi- that’s what the Fed is trying to do. And I’ve cally eviscerate the education and health and made a real practice of trying not to com- environment budgets of the country? What ment on interest rate changes and trying to is their proposal? let Chairman Greenspan and the Fed do Of course, we will negotiate, but we ought their work, and I would do mine. to think about first things first. Let me just But again I say, look—look at what we’ve say this: I think we proved in ’93, when we done here. I think if you just look at Chair- didn’t have a single Republican vote and the man Greenspan’s own testimony, we’ve all Vice President had to break the tie in the been somewhat surprised that we could grow Senate, that we were right and they were not as much as we have, have unemployment as right about what would be the best econom- low as we’ve had, and have virtually no infla- ics for their constituents. That is, when we tion. And it’s a tribute to the productivity of passed that ’93 economic plan, there is no the American businesspeople and the explo- question that it sparked a huge drop in inter- sion of technology, and it’s rifling through est rates, a huge increase in investment, and every sector of the economy and giving us an explosion in economic activity. And it had

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a lot more positive impact on the markets You know, sooner or later, results should and on business investment and on job cre- account for something. Sooner or later, we ation than a tax cut which perpetuated a def- should stop having this debate as if there is icit would have had. no history, no evidence, no facts, no results. Now, in 1997, we reached agreement on Now, we’ve produced an economy with 19 a bipartisan balanced budget deal which kept million new jobs, the longest peacetime ex- that philosophy going. We continued to in- pansion in history, and if we get out of debt, vest in education and technology and re- the average person will get much more than search. We provided tax cuts to families and they would from an extra tax cut. for college education. We did it in a balanced Second, I am for a sizable tax cut. I have way, and what’s happened? Now we’ve got proposed a sizable tax cut. I also supported this surplus. the previous tax cuts, the $500 child credit, I will say this: The most important thing the college credit which is $1,500 a year. I we can do for the long-term health of the supported all these tax cuts. But first things economy is to say to the whole world, we’re first. If we take this country out of debt for going to make America debt-free in 15 years. the first time since 1835, then average people If we did that, what does that mean? Much are going to have more money in their pock- lower interest rates, higher business invest- ets than if we keep the country in debt and ment, lower credit card, lower consumer, low give them a tax cut now because we’ve got homeownership rates, higher wages. an election in a year and a half. So will we negotiate? Will there be a nego- Stock Market and the National Economy tiation? Of course there will be. But let’s do Mr. Insana. Can I stick in one final ques- the first things first. Let’s keep America eco- tion? As we speak right now, the stock market nomically strong. We’ve got 61⁄2 years of evi- again is at a new all-time high—the Dow, dence now about what works. Why in the the Nasdaq—everything’s going very well on world would we take a U-turn and run this Wall Street. Do you worry at all about a bub- deficit back up or just pull out of the edu- ble in the stock market or the economy cation business? today? Mr. Insana. Let me ask the question more The President. Well, I think every person simply than the way maybe an individual who’s thoughtful, who knows that nothing might, which is, if I overpay my taxes every lasts forever, wonders how this will all play year, I get a refund; if I overpay for 15 years, out. I think every thoughtful person does. why can’t I get a really big refund and get But I think what we should do is to make that money back in the way of a tax cut? the most of this and to make no move which The President. Well, how do you define would turn it into a bubble prematurely. ‘‘overpay’’? But it seems to me again, we can have a Mr. Insana. Well, if you’re running a sur- tax cut, but if I announced—just suppose, plus, I mean, Government has more money think about this—suppose you had an an- than it can use. nouncement—you don’t expect this to The President. That’s right. But Govern- occur—where Speaker Hastert and Senator ment has more money than they can use for Lott joined Mr. Gephardt and Senator 15 years after quadrupling the debt in the Daschle and me, and we said, ‘‘Look, here’s 12 years of the Reagan-Bush years. I mean, our program. Here’s what we’re going to do we tried it their way. We tried it their way. to save Medicare; here’s what we’re going We tried all the supply-side economics. to do to save Social Security. We’re going Every year—every year—they came in and to make the country debt-free in 15 years; said, ‘‘Oh, we’re going to get rid of the deficit we’ve got some more money for education, this year.’’ And every year, it got bigger and and we’ve got to take care of defense, and bigger and bigger. You go back and look at here’s a sizable tax cut. This is our program.’’ what they said, my predecessors said, was I believe that would lengthen the period of going to happen to the budget and what, in this recovery. I think it would minimize the fact, had. chances of a bubble.

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If, by contrast, we went out and said, ‘‘Hot President Clinton. If there were jobs in dog! Right here before the next election, the near vicinity, some sort of small manufac- we’re going to give you a $1 trillion tax cut. turing or something like that, do you think Unfortunately, our deficit will be bigger, and all the people who could work would do so? we won’t get ourselves out of debt. And un- President Salway. Yes. We have one of fortunately, we’ll have to cut education the highest unemployment rates for—a lot spending and research. But we just think this of people going to work, being more respon- is more important, and I know it didn’t work sible with their time would uplift the lives the last time, but somehow we think it will of the entire family in a lot of ways. work this time—even though it didn’t work. President Clinton. Where’s your tribal We tried it for 12 years, and it never worked. college? Somehow, we think, poof, magically it will President Salway. Probably about 40 work this time’’—I believe that my course miles northeast of here, toward the center of action is better for the American economy part of our reservation. Our reservation is than that latter course of action. about 135 by 84, 85, thereabouts. A pretty Mr. Insana. Mr. President, we appreciate large reservation. your time. Thanks for joining us. President Clinton. How close do the jobs The President. Thank you. have to be in order not to be too burdensome to go to and from work? NOTE: The interview began at 12:16 p.m. on July President Salway. We don’t have a trans- 6 at the loading area of the Waterfield Cabinet portation system, so most people have to car Co., and it was videotaped for broadcast later that pool into Pine Ridge. Pine Ridge is kind of evening. The transcript was released by the Office like the capital of the reservation, if you will. of the Press Secretary on July 7. A tape was not Most people transporting in and out transit available for verification of the content of this to come to work from IGS and BIA and tribal interview. government. That’s the greatest portion of employment. Not too much microenterprises Remarks in a Discussion at Pine for development. Ridge Indian Reservation, South Housing is one of the largest employers on the reservation. But the need is so high Dakota that it naturally is one of the higher employ- July 7, 1999 ment areas. President Clinton. Andrew, why don’t The discussion is joined in progress. [ ] you just say what we’ve been talking about, President Harold D. Salway. ——but say what you were saying about the housing. we’re durable people, have a lot of pride, Secretary Andrew M. Cuomo. As the have a lot of dignity. President was saying one of the greatest President Clinton. How do you stay needs is housing, just provide the basic living warm in the winter? conditions where people can improve them- President Salway. Well, we’re condi- selves. And then homeownership—very little tioned. We’re conditioned, a lot of buffalo homeownership on the reservation—and robes, a lot of good, hard work, too. This is homeownership, given the conversation how a lot of people live, though. This is about we’ve had this past week is really the first the average conditions of most homes access to capital strategy, when you think throughout the reservation. And some are about it. Because when you own and you really bad yet. have equity in your home, then you can start President Clinton. Would you say the to get loans, you can start to get financing biggest immediate need you have is for bet- and start to get credit to open a business or ter housing? pay a tuition, whatever you’d like to do. President Salway. Housing and what new So our efforts are, first, try to improve as markets is going to do, create jobs. Not much housing as we can. We’re doing that enough people working here on Pine Ridge, through the Housing Authority. We’ve set up so that causes a lot of potential impacts. a not-for-profit with the reservation for the

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first time so the tribe can do business as a it possible to bring more and more private tribe and also as a not-for-profit organization. capital onto the reservation. And then homeownership, homeowner- Housing is the one part of the private cap- ship, homeownership. The people who are ital system that is really working in full speed at the conference today—I was telling the and is available to come into the toughest President the numbers are up to about 800 areas. It’s harder to get funding for busi- people from across the country who come nesses and things, but we could do for hous- to this housing conference—100 tribal presi- ing. dents. And we have the mainstream home- President Clinton. Let me ask you some- ownership, housing, bankers who come to thing. A lot of the people here you said have the conference. And we’re going to start, for more than one family in the home. Now, if the first time ever, in a big way, homeowner- they had the choice, would you prefer a sin- ship on the reservation linked to economic gle-family home for every family that was development, because it’s also an empower- more modern, or more modern but larger ment zone. We’re going to sign officially the where you could have—more than one family papers at the next event. could live together, but they’d have enough So we have the empowerment zone doing room to have their own rooms. Which would the economic development piece and hous- be preferable? ing and the homeownership with the private President Salway. Probably single-family mortgage market coming forward. homes because all the families crunched into one house causes a lot of other—— President Clinton. Frank? President Clinton. Problems. Franklin D. Raines. Well, we’re trying President Salway. —— problems. Yes. very hard to bring private capital into the res- Social situations. ervation. It’s been a—working with this res- Geraldine Blue Bird. Mr. President, with ervation, now signing an agreement with one regards to that, my house, the square footage of our major lenders and with the tribe to of this is really short for the amount of people cut through a lot of the legal problems that that I have here. So, with all my kids and lending—when you’ve got trust lands in- my grandkids, when it comes to the living volved. And we think we can make progress room area here, they’re just stepping on there. them and bumping into them. And my— We think that it’s important that, in addi- Philip is in a wheelchair, and he wants to tion to the HUD programs that are so impor- have room. And then I have a stool sitting tant, that we also get mainstream lenders in in the center—short footage area. And places the conventional lending here. We’ve done like this are small. a fair amount. We’ve bought about 70 per- President Clinton. How many people live cent of the HUD loans that were made— in here with you? Fannie Mae has financed on this reservation. Ms. Blue Bird. In this house, there are But we’re going to be committing not only 11. And in this house—between the two to purchase new housing, but $3 million of houses, there’s 28. You met part of them venture capital funds to encourage produc- here. tion of housing on this reservation. All this President Clinton. So you have 11 living is part of a $500 million initiative that Senator in here and 17 in the other place. Daschle and Senator Johnson and I an- Ms. Blue Bird. About like that. Yes. Be- nounced yesterday. That’s covering the cause I’ve got them sleeping in here in the whole State, but there is a portion that is living room. I’ve got bunks in there. Between going to be just here. And we’re intentionally these two areas here, I have five bedrooms. keeping it, without us saying exactly where President Clinton. And 28 people sleep? it’s going to go. Ms. Blue Bird. And I have five bedrooms. We’re going to work with the tribal gov- So this is what I’m talking about. What you ernment to ensure that we can either put said, with that many people in a small area, it in a multifamily or single-family or com- that does cause problems, like here. My own binations of housing and retail that will make personal opinion is I’d like to see us get jobs,

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because really to have—to get one of the And she said, yes, they did need new hous- homes that are coming up, you need to have ing, but the most important thing they need- an income. But right now we’re living on— ed was a way to make a living. Keep in well, here on this street, I can safely say about mind—this is unbelievable—this country has 85 percent of us, here on this street alone, had an unemployment rate of under 5 per- are living on Social Security, SSI, and wel- cent for 2 years; the unemployment rate here fare. That’s one income once a month. And is almost 75 percent. We have to find a way that’s what we use. not only to fix this, the very difficult housing My boys, as you have seen, have applied circumstances, but to get them jobs. for jobs. They have applications all over. I’ve We’ll talk more about it. even got one boy that went to the Service. We’ve been using his veteran’s benefits. It’s NOTE: The exchange began at approximately hard to get a job here because there isn’t 10:30 a.m. at a new reservation housing complex. one. When you get a job here, you hang onto In his remarks, the President referred to Geral- it, because you get an income. Money every dine Blue Bird, resident, Pine Ridge Indian Res- ervation. A tape was not available for verification 2 weeks is better than money once a month. of the content of this exchange. President Salway. And that causes prob- lems. Everybody struggles for those very, very minimum jobs you have. So it causes Remarks to the Community at Pine a lot of conflicts. Ridge Indian Reservation President Clinton. Over the jobs? July 7, 1999 President Salway. Over the jobs. So few. Thank you very much. Thank you. Thank NOTE: The discussion began at approximately 10 a.m. outside the home of Geraldine Blue Bird dur- you, Mr. President, and thank you to all of ing a walking tour of the Igloo Housing neighbor- you here from Pine Ridge and all the other hood. The discussion participants included Presi- tribal leaders who are here for HUD’s dent Harold D. Salway of the Oglala Sioux Tribe; Shared Vision Conference. I am profoundly and Franklin D. Raines, chairman and chief exec- honored to be in Pine Ridge and in the utive officer, Fannie Mae. The Office of the Press Lakota Nation. In fact, to try to demonstrate Secretary also released a partial transcript of this my appreciation and respect, I would like to discussion. A tape was not available for verification try—to try to say something in Lakota. of the content of this discussion. Mitakuye oyasin. My neighbors, my friends, we are all related. Exchange With Reporters at Pine Consider those who have come here today Ridge Indian Reservation to join hands with you, along with Secretary July 7, 1999 Cuomo, Secretary Glickman, your great con- gressional delegation, our Democratic leader Q. Mr. President, what did you learn from Tom Daschle in the United States Senate the Igloo neighborhood this morning? and Senator Johnson, Congressman Thune. The President. Well, the woman who was You don’t know this, but we have Members speaking with me, Geraldine—some of you of Congress from all over America who have had to leave before she talked—there are 11 some here to express their support and their people living in her house and 17 members commitment to join you in building a better of her family living in the trailer next door tomorrow: Congressman Ed Pastor from Ari- connected to her house, 28 people there with zona; Congressman Dale Kildee from the five bedrooms between them. State of Michigan; Congressman Jim Clyburn And she talked about how hard it was with from South Carolina; and Congressman Paul no jobs to make ends meet, and how she had Kanjorski from Pennsylvania, he has come to buy all the children’s school clothes on all the way from Pennsylvania to be here. installment, on layaway. And what she did I want to thank the other people from the was she had to find money for the children administration, especially Assistant Secretary who were on the cross-country team—just of the Interior Kevin Gover and Lynn Cutler to be able to do the most basic things in life. in the White House, who work with all of

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our Native American leaders around Amer- Franklin Roosevelt was President. That is ica, for what they do. I want to thank the wrong, and we’re trying to fix it today. CEO of Fannie Mae, Frank Raines; the CEO I was profoundly moved by the pipe cere- of Norwest, Mark Oman; the PMI President, mony, just as I was when your congressional Roger Haughton; Mortgage Bankers Associa- delegation took me last night not only to tion President, Don Lange; Champion Mount Rushmore but to the Crazy Horse Homes CEO, Walter Young—for all the Memorial, and to the museum that is there work that they are prepared to do in building with it. a better future, and they’re here today. But I ask you today, even as we remember I want to thank my good friend Jesse Jack- the past, to think more about the future. We son, for never letting us forget our common know well what the failings of the present obligations. I thank the other members of our and the past are. We know well the imperfect delegation today—Bart Harvey from Enter- relationship that the United States and its prise; Al From from the Democratic Leader- Government has enjoyed with the tribal na- ship Council. I’d like to thank the young tions. AmeriCorps volunteers who are here today But I have seen today not only poverty, for all the work they do. but promise. And I have seen enormous I would like to finally say a word of appre- courage. I came here today for three reasons. ciation to all the people who live here on First of all, to celebrate the empowerment this reservation, who welcomed me into their zone and the housing projects that are going homes, who talked to me today as I walked on here now. Second, to talk about my new down their streets. I thank especially markets initiative and what else we can do. Geraldine Blue Bird, who Secretary Cuomo But, third, with the business leaders who are mentioned—she let me sit on her porch, and here—and I’ve already introduced them, but she told me how she tries to make ends meet I’d like to ask the business leaders I just men- for the 28 people that share her small home tioned to stand up. We want to send a mes- and the housetrailer adjoining. sage to America that this is a good place to I thank the children who stopped their invest. Good people live here. Good people playing and shook hands with me and lis- live in Indian country, they deserve a chance tened to me while I encouraged them to stay to go to work. [Applause] Thank you. Thank in school and to go on to college and to live you. out their dreams. I want to bring you greet- You’ve already heard President Salway and ings from two people who are not here— Secretary Cuomo recite the statistics. It’s a first, from Vice President Gore, who has hot day out here, and I know you’re suffering headed our empowerment zone effort that in the Sun. But I want to send a message Pine Ridge became a part of today. And, sec- to America. So I just want to say a few things, ond, just a little over an hour ago, I talked and I want you to think about this. Think to the First Lady, and Hillary has spent more about the irony of this. We are in the longest time in Indian country than any First Lady period of economic growth in peacetime in in history. She is intensely committed to this our history. We have in America almost 19 effort, and she asked me to say hello to you. million new jobs. We have the lowest unem- President Salway said today I was the only ployment rate ever recorded for African- President ever to come to an Indian reserva- Americans and Hispanics. For over 2 years tion for a nation-to-nation business meeting. our country has had an unemployment rate I remember back in 1994, I invited all the below 5 percent. But here on this reserva- tribal leaders in America to the White House, tion, the unemployment rate is nearly 75 per- and it was the first such gathering since the cent. That is wrong, and we have to do some- presidency of James Monroe in the 1820’s. thing to change it, and do it now. Now, I know that Calvin Coolidge came to When we are on the verge of a new cen- Pine Ridge in the 1920’s, and that President tury and a new millennium where people are Roosevelt visited another Native American celebrating the miracles of technology, and reservation, but no American President has the world growing closer and closer together, been anywhere in Indian country since and our ability to learn from and with each

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other and make business partnerships with ferred to this profoundly emotional meeting. each other all across our globe, and there I have given a great deal of thought to what are still reservations with few phones and no was said then and what I heard now. We can banks, when still three or four families are do better. I would like to mention just a few forced to share two simple rooms, where specific things, for you have all heard years communities where Native Americans live of pretty words. have deadly disease and infant mortality rates There is no more crucial building block at many times the national rate, when these for a strong community and a promising fu- things still persist, we cannot rest until we ture than a solid home. Today I want to talk do better. And trying is not enough; we have about a number of things the Government to have results. We can do better. and the private sector are going to do to in- Our Nation will never have a better crease homeownership. Our whole team vis- chance. When will we ever have this kind ited those new homes that are being built of opportunity where unemployment is low, not far from here. We talked to the families inflation is low, there’s a lot of money in our that are moving into those homes. I had a country, the value of the stock market has little boy take me through every room in the tripled and then some? Business people are home, tell me exactly where every closet was, looking for new places to invest, and people tell me what his sister’s room had that he who have done well feel a moral obligation didn’t have, and why it was all right, because to try to help those who are less fortunate, she was older and she needed such things. who have not fully participated. This is important. And we see it from Appalachia to the Mis- So what are we going to do? Private lend- sissippi Delta to the inner cities of our coun- ers, like Bank of America, Norwest, Bank try to the Native American communities. If One, Washington Mutual, are going to work we can’t do this now, we will never get with the Mortgage Bankers Association and around to doing it. So let us give ourselves HUD, to more than double the number of a gift for the 21st century—an America government-insured or guaranteed home where no one is left behind and everyone mortgages in Indian country in each of the has a chance. next 3 years. We will do our part. You have suffered Right here in Pine Ridge, Fannie Mae, from neglect, and you know that doesn’t under Frank Raines’ leadership, has set aside work. You have also suffered from the tyr- millions of dollars to help you buy those anny of patronizing, inadequately funded homes at below market rates. And they are Government programs, and you know that spending hundreds of millions of dollars all doesn’t work. We have tried to have a more across this country to help people just like respectful, more proper relationship with the you become homeowners for the first time. tribal governments of this country to pro- And Secretary Cuomo’s Partnership for mote more genuine independence, but also Housing is giving financial incentives and to give more genuine support. And the em- counseling to help families figure out how powerment zone program, as the Vice Presi- to actually get this done, how to buy their dent and I designed it 6 years ago, is de- own homes and pay for them. signed to treat all communities that way. But, as I heard over and over today, even We’re not coming from Washington to tell if we went in and tried to repair or rebuild you exactly what to do and how to do it, we’re or build new homes for every family here, coming from Washington to ask you what you and in every Indian community throughout want to do, and tell you we will give you the United States, we must have jobs if we the tools and the support to get done what want these communities to work. Adults you want to do for your children and their need to have something to look forward to future. every morning when they get up. And if they President Salway and a number of tribal want their kids to stay in school, and stay leaders came to me at the White House a out of trouble, and look to tomorrow, their couple of months ago. You may have heard lives have to be evidence that looking to to- in the national press that I repeatedly re- morrow pays off. It is appalling that we have

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the highest growth rate in peacetime in our Finally, we must seize the vast potential history, that we have an unemployment rate of tourism right here in Pine Ridge by build- below 5 percent for 2 years, and the unem- ing a Lakota Sioux heritage cultural center. ployment rate on this hallowed reservation Every year, millions of families travel long, is almost 75 percent. That is appalling, and long distances to see Mount Rushmore—2.7 we can do better. million last year. The Crazy Horse Memorial, No community in America can grow, how- about a million and a half, even though only ever, without basic blocks. No community in the head has been finished. The Crazy Horse America should be without safe running Memorial last year had a million and a half water and sewer systems. So the Department visitors—only the head has been finished. I of Agriculture will put nearly $16 million in went there late last night; and the Badlands water projects throughout Indian country, in- National Park. cluding two right here in Pine Ridge, that Now, if you look at that, you have to ask will also help you get jobs, as well as improve yourself: How can you have—how many peo- the quality of life. ple, if you did everything right down here, As you can see, in this Big Sky country, if we built this cultural center, of all the peo- it is rather warm and it gets windy from time ple that go to see Crazy Horse, of all the to time, as the natives will attest. The Depart- people that go to see Mount Rushmore, of ment of Energy will help you harness the all the people that go to Badlands National power and profits of wind and solar energy, Park, how many would come here? I’ll tell to save money and make money. Owens Cor- you—a whole lot. An enormous percentage, ning and North American Steel Framing Alli- if you give them something to come and see. ance will provide skills training and the That is nothing more than the simple, pro- promise of quality jobs. And Citibank and found, powerful story of your eloquent past Gateway Computer Company will work with and your present, of your skills and your her- Oglala Lakota College and other schools to itage and your culture and your faith. help Native American students get the com- These commitments that we are making puter skills that will allow them to get 21st today are just the beginning. Thirty-one years century jobs. And our Federal Communica- ago this spring, Senator Robert Kennedy tions Commission will work with you to im- came to Pine Ridge. Many of you probably prove telephone service throughout Indian still remember that visit. Senator Kennedy, country, an absolute prerequisite for getting seeking medical care for his child, lying sick any new business in here. in the back of an abandoned car, refusing And let me just say that one of the things to sit and begin an important meeting until that we have learned is that the computer all of the tribal leaders had their proper seats. and the Internet make it possible for many You may remember his message of hope. people to do many kinds of work in any com- Let me say that all across America, people munity, anywhere in the United States, in- were watching that. I have to say, on a purely deed, increasingly, anywhere in the world. personal note, one of the most touching The fact that this reservation is a long way things about this day for me is that the wife from an urban center would have been an of our HUD Secretary is Robert Kennedy’s absolute prohibitive barrier to a lot of eco- daughter, and she is here today and this is nomic development just 10 or 15 years ago. a proud day. I’d like to ask her to stand. The explosion of computer technology and Kerry, please stand. Thank you. Give her a the Internet, if you know how to use it and hand. [Applause] Thank you. you know how to deliver for others with it, We lost all those years. There were a lot has literally made the distance barrier almost of reasons, and a lot of things are better than insignificant for many kinds of economic ac- they were 30 years ago. But this is the first tivity. So I want to implore you to use your time since the early 1960’s when we had this tribal college and work with these companies kind of strong American economy, and we and make the most of the skills they are offer- have no excuse for walking away from our ing, and we can get the jobs to come here responsibilities to the new markets of Amer- once you can do them. ica.

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I have asked the Members of Congress to making all of us feel so welcome in your go back and pass legislation that will give beautiful home State. Last night I was fortu- major tax breaks and government-guaranteed nate enough to have a chance to tour two loans to people who will put their money in of the proudest monuments in all of America, Indian country, to lower the risk of taking Mount Rushmore and the Crazy Horse this chance. We are going to do everything Monument. And earlier today, as has already we can to make your empowerment zone been said, all of us went out to the Pine work. But remember, there is nothing that Ridge reservation. We saw what you know we can do except to help you to realize your are the profound needs of Indian country, own dreams. but we saw a great deal of promise, as well. So I say to every tribal leader here: The I’d also like to say that I am well aware, name of the conference you are attending as a man who lived his life in a farming State is Shared Visions. We must share the vision, before I became President, that the farmers and it must be, fundamentally, yours—for and ranchers of South Dakota have not had your children and their future. If you will an easy time lately. Wheat and livestock give us that vision and work with us, we will prices are low. They’ve been low. We have achieve it. shown a commitment to see our farmers Thank you, and God bless you. through these tough times, and we will con- tinue to keep that commitment. And I thank NOTE: The President spoke at 12 noon on the them for what they do. field at the Oglala Community School. In his re- Most important, I want to thank the men marks, he referred to President Harold D. Salway, and women of the 28th Bomb Wing. Now, Oglala Sioux Tribe; civil rights leader Jesse I understand you’re celebrating a Warrior Jackson; Bart Harvey, chairman and chief execu- tive officer, The Enterprise Foundation; Al From, Pride picnic today, honoring all those who president, Democratic Leadership Council; and have been deployed in the past year in Eu- Geraldine Blue Bird, resident, Pine Ridge Indian rope and around the world. And I’ve been Reservation. told that this picnic will really get into high gear when I get off the ground. So I won’t talk long. Remarks to the Community at I do want to say, again, to each and every Ellsworth Air Force Base in Rapid one of you individually, how profoundly I and City, South Dakota your fellow countrymen and women are for July 7, 1999 your service in Kosovo—more than 30,000 sorties over 79 days, not a single pilot lost Thank you very much. Senator Daschle, in combat; 19 NATO Allies working as a team Senator Johnson, Congressman Thune—can through the longest and most difficult mili- I pronounce the colonel’s name right? tary engagement in the history of our Alli- Przybyslawski. How’s that? [Applause] ance. The men and women of Ellsworth were Let me say that I am also very grateful a major force behind Allied Force. Many of that we have been joined on this tour by sev- you are part of the 2d Air Expeditionary eral Members of Congress who are with me: Group. The War Eagles of the 77th Bomb Representatives Clyburn from South Caro- Squadron deployed out of Fairford, sending lina, Kanjorski from Pennsylvania, Kildee pairs of B–1’s over targets in Kosovo twice from Michigan, and Pastor from Arizona. a night. And I bet there are people in this audience I want you to know that not very long ago, serving in our Armed Forces from all those my wife and daughter and I visited a refugee States and more, and I thank them for com- camp in Kosovo full of children. The camp ing as well. I thank Secretary Glickman, our was in Macedonia, but it was full of Kosovar Secretary of Agriculture, and Reverend Jesse children who had literally seen the worst Jackson, for being here. things that human beings can do to one an- I came here today to say that we are pro- other. I shudder to think how we would feel foundly grateful to the people of Ellsworth if our little children, those who are here and the people of western South Dakota for today, had to witness those kinds of atrocities.

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But they never gave up hope, in large children to grow up in. And because you do measure because they knew the United what you do, we have a very good chance States was on their side. I wish every one to build it. of you in uniform could have heard those Thank you. God bless you. God bless children in the camps, chanting, ‘‘U.S.A., America. Thank you very much. And I want U.S.A., U.S.A.!’’ Thanks to you, they’re re- to thank the band for the music. Will you building their lives. Already they have braved play me a little more? One more piece, I landmines and other dangers so that 600,000- loved it. Thank you very much. plus of the refugees have already gone home. They said it couldn’t be done; it is being done NOTE: The President spoke at 2:52 p.m. on the because of you. And I thank you. The world tarmac. In his remarks, he referred to Col. is in your debt. Anthony F. Przybyslawski, USAF, commander, I just want to say one more time that our 28th Bomb Wing; and civil rights leader Jesse allies in Europe, on which so much of our Jackson. A tape was not available for verification security depends, told me over and over and of the content of these remarks. over again how grateful they were that Amer- ica was there to stop the slaughter of people because of their religion or their ethnic Remarks in a Roundtable Discussion groups. The killing of people has no place on Small Business Development in in the 21st century if it means innocent civil- Phoenix, Arizona ians are going to be slaughtered because of July 7, 1999 their race or religion. It is against everything America stands for. And we’ve stopped it. The President. Thank you very much. You should be very, very proud. First, I want to thank Ed Pastor for making Now, let me just say one other thing. A me feel so welcome and for being my friend lot of times the spouses, the children, and and doing a wonderful job for you back in the extended families of our bases don’t get Washington, DC. He has the respect of every the credit they deserve. But I am well aware Member of Congress, and when he talks, we that nothing could be done without your sup- all listen. port, and I want to thank you. I want to say to all of you that I am hon- The last point I’d like to make is that this ored to be back in Phoenix. Arizona has been whole trip we’re taking—to the hills and hol- very good to Hillary and to me and to the lows of Appalachia, to the Mississippi Delta, Vice President and Mrs. Gore, not only in to the Pine Ridge reservation; we’re now voting for us in the last election but in prov- going to Phoenix and on to East Los Ange- ing that the philosophy of government and les—is designed to remind Americans that the policies we’ve followed can bring us to- even though our country is now blessed by gether and make us a stronger country. So the longest economic expansion in peacetime I want to begin by saying a simple ‘‘thank in our history, not all Americans have been you.’’ blessed by it. And we have to have a commit- I’d like to thank the people who have come ment to treat each other fairly and give every- here with me today. Congressman Pastor one a chance. mentioned Congressman Kanjorski from I also want to say that was a big part of Pennsylvania, Congressman Clyburn from why the United States Congress, with an South Carolina, our Small Business Adminis- overwhelming bipartisan vote, recently voted trator, Aida Alvarez, and my Deputy Chief to raise the pay of our men and women in of Staff, Maria Echaveste; they are all here uniform and improve the retirement. And I and others. I thank them. appreciate that as well. I’d like to thank the Reverend Jesse Jack- I look around here and—all of you in uni- son for coming on this tour with me, along form—I see men and women. I see people with the business leaders; thank you. I know of all different faiths, races, and ethnic there are some public officials here. I think groups. You represent the kind of world Janet Napolitano, your attorney general, is we’re trying to build for tomorrow, for these here; she met me at the airport. Jim Hill,

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the state treasurer of Oregon, is here. Thank I mean, it’s a lot of people. So I think about you both. that. I’d like to thank the business leaders here How can I do that? Well, we can sell more with me: Leo Guzman, Marianne Spraggins, of our products overseas, which we’re trying Gene Humphrey of Enron, Steven Burd of to do. We can take more people off welfare Safeway, John Corella of Corella Electric, or disabled people and help them get in the Myrna Sonora of KTVW 33—some of you work force, which we’re trying to do. But the probably watch that—[laughter]—Mike easiest way to keep America’s economy going Welborn of Bank One, Andy Gordon of Ari- strong is to get more investment, create more zona Multibank, Frank Ballasteros of jobs, and create more consumers in the MICRO, Leonard Moreno of Mareno Weld- neighborhoods, in the cities, and in the rural ing, Yolanda Kaizer of Builder’s Book Depot. areas, and on the Indian reservations which And, obviously, I’d like to thank our host, have not yet felt this recovery. That’s what Josie Ippolito, and all the other wonderful this whole thing is about—how we can do women in this remarkable family that own this together. this group. And I’m here to make three points: Num- Ed already said why we’re here, and I’m ber one—and I want to give some specifics here mostly to listen to the people here. But in a minute—we’ve been working at this for I want to make a very important point. I want 61⁄2 years with our empowerment zones and you to know why we are here. We are here our enterprise communities and our commu- because we have the longest peacetime ex- nity development banks—you have one pansion in history, almost 18 million new jobs here—with the vigorous support of the Com- since I took office, the lowest unemployment munity Reinvestment Act. rates among Hispanic-Americans and Afri- Number two, therefore, American busi- can-Americans ever recorded. Our country ness needs to know that there are good op- has been really blessed by these good eco- portunities right now in inner cities and in nomic times. It has contributed to giving us rural America. This is not about charity; this the lowest crime rate in 25 years, the lowest is about how to make money by helping peo- welfare rolls in 30 years, declining rates of ple who are willing to work for themselves teen pregnancy and drug abuse. We have 90 get the chance to do it, to start those busi- percent of our little children immunized nesses or become good employees. That’s against serious childhood diseases for the what this is about. first time in the history of our country. Finally, it’s about supporting our new mar- But we know as blessed as America has kets initiative, which seeks to make it easier been, not every American has been blessed for people to get equity capital to start or by this recovery. All you’ve got to do is drive expand their businesses in any poor neigh- down the streets here in south Phoenix to borhood or underdeveloped area anywhere see that. So what we are doing is going in the United States of America. So that’s around the country to say we can do better, why we’re here. And that’s the message that morally, now that we’re doing so well, you’re sending out here in south Phoenix to we have an obligation to give every American every community in America where there are who is willing to work for it a chance to walk good people who need investment and jobs. across that bridge into the 21st century with Now, let me say that there are a lot of us so we go forward together, leaving no one good things that are happening and I want behind. And not only that, it’s good econom- to thank some of the people who are here. ics. I want to thank Safeway for the new store A long way from south Phoenix, I have to at 16th Street and Southern Avenue, and the worry every day about how I can keep cre- new shopping center that it will anchor. That ating jobs so you have more people to buy will create a lot of jobs. And, interestingly these wonderful products you are producing. enough, we’re trying to highlight this every- I mean 840,000 a day—that’s a lot of people, where, because in almost every city in Amer- you know. Of course, not everybody eats as ica, even with high unemployment, there are many at one sitting as I do. [Laughter] So, obviously a lot more people working than not

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working, and there is more purchasing power So thank you all for coming and, Congress- in our cities than there are stores to take it man, the floor is yours. You want to introduce up. So we thank Safeway. the folks who are going to talk? I think maybe I also want to thank Univision, because you’re going next—our hostess. they are about to build a new multimillion- [At this point, the discussion proceeded.] dollar broadcast facility for its local station, KTVW 33, and they’re going to build it right The President. Thank you very much. here in south Phoenix, and that will help your Let’s give him a hand; I thought that was economy to grow. Thank you. Thank you, good. [Applause] Myrna Sonora. If I could just make one point. One of the I want to thank the community develop- things that I learned traveling around the ment institutions like Arizona Multibank, the country in 1990 and 1991, before I decided microenterprise organizations like MICRO. to run for President, was that the crime rate That’s a fancy way to saying they loan small was going down in areas where more police amounts of money to people to start small were on the street and in the communities businesses who couldn’t get the money any- and working with their neighbors, not just where else, and guess what? They usually because they were catching people quicker, make good loans and they make money doing but because it was actually preventing crime it, by giving people a chance who couldn’t from occurring in the first place. 1⁄2 years, we have funded get a chance anywhere else. In the last 6 100,000 more police officers for our streets, I want to thank Arizona Multibank for in small towns and rural areas as well as big launching Magnet Capital, which is a new cities. And in the budget I now have before venture capital fund, backed by the Small the Congress, we’re trying to get another Business Administration, that will give lower- 50,000 targeted at the highest crime areas income entrepreneurs the equity they need in the country. to grow and expand. So thank you very much, So that will help. That’s something that we Mr. Gordon. didn’t come here to talk about today, but if Now, there’s lots of other things that all I can persuade the Congress to do that, that you have to say. Just remember, we came will obviously help you and others like you here for three reasons. One is to show the to locate more stores and to have more sub- business community of this country that we stations. And it will also bring the police in have the kind of partnership between gov- closer contact with the community and in- ernment and the private sector that makes crease confidence and good feeling. So I it more attractive to invest in places with thank you very much for that. higher unemployment and with too few busi- nesses. Two, to make the point that there [The discussion continued.] is a huge amount of opportunity out here The President. I want to thank you for right now. And the more American business the work that you have done—you know, we knows about it and the more they invest in were just together over at Chicanos Por La it, the better they’ll do. And three, we have Causa and the work you did to help them a proposal before the Congress to go nation- set up their micro lending program. The Vice wide to give big tax breaks to people to help President, who has supervised all of our com- provide equity capital. munity economic development efforts for the And I want you to know what I’m doing. last 6 years, announced this new SBA initia- I’m basically asking the Congress to give in- tive with Aida not very long ago. vestors like those on this stage with me today But I just want to emphasize to you, we the same incentives to invest in south Phoe- were in the Mississippi Delta yesterday—it nix that we give them right now to invest was also 100 degrees there—and we were in the developing countries of Latin America in a little factory that makes picture frames, and Africa and the Caribbean. I want to do that had been gone into bankruptcy. And we that, but you should have the same incentives met a young man that thought he could turn here. it around, and he had opened the place back

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up in a place with terribly high unemploy- not all the business people who wanted to ment. go on this trip can go. But there is a phe- But one of the people I met there was nomenal amount of interest in this, and I a woman who had worked for a small busi- must—I want to give credit to Reverend ness that was doing okay, but the person run- Jesse Jackson. His Wall Street Project has ning it in this little town, for family reasons, been working on this for years. couldn’t go on. And she was the only person I mean, there is a much higher level of qualified to take over this business, otherwise awareness among American business leaders it was just going to disappear. But she made that there is money to be made and a better very low wages for a person who owns a busi- society to be made at the same time in these ness, and she had no money in the bank. neighborhoods. So I don’t think you have to And because she was able to get some eq- worry. I think when we can finish this tomor- uity capital from someone as farsighted as row afternoon in East LA, you will see a you, her little business in a year went from much higher level of commitment and inter- 5 employees to 11 employees—instead of 5 est in corporate America than we had before. people losing their jobs—and a woman that Thank you, Mr. Corella. You’re great. never made more than a few dollars an hour The discussion continued. in her life is now a successful small business [ ] owner. That is that sort of thing we ought The President. First of all, I want to thank to be doing more of in America. And if we Gene, because, really, Texas is a classic exam- did more of it in places like south Phoenix, ple—it’s almost exactly like Arizona and the unemployment here would not be higher Phoenix. The unemployment rate in Phoenix than the national average, and the incomes as a whole is less than 3 percent. The unem- would not be lower. So I thank you very ployment rate in this section of Phoenix is much for what you’re doing. twice the national average, maybe a little more. You have the same thing in Houston. The discussion continued. [ ] I just want to illustrate, use Enron, which The President. I’d just like to make two is a fabulous and very large energy company, points if I might, by way of completely agree- to illustrate a point that he made, that I think ing with what you just said. First of all, for we should emphasize because it goes back people who think we don’t need these SBA to something John made. One of the reasons programs anymore because the economy’s we’re taking this trip here is that one of the— doing so well, I would remind you that the is that even in business, even with a market SBA is a permanent example of the kind of economy, where people are always supposed approach that I believe we should be taking to act in their own self-interest, people can- in the Government. The SBA basically gives not do what they don’t know. And people people the tools to make the most of their cannot have a relationship with people with own lives. They make the market more likely whom they are not acquainted. to work in places where it otherwise wouldn’t And one of the things that Enron did, say- work. And for people who don’t think it mat- ing that he worked through a local commu- ters—you know how much all these tele- nity investment group, is to have—to literally communications companies are worth now build networks of relationships between big and what’s happened to the stock market in businesses and people that they would other- the last 6 years, it’s more than tripled. Thirty wise never, ever, ever come in contact with. percent of our growth coming out of high And so, I say again, I think—you heard tech. what Steve said about Safeway figuring out Intel and America Online—huge compa- there was a market here. Once you begin nies worth billions upon billions of dollars— to establish these networks of relationships, started with SBA loans. And so, I think, you and once they become a part of the fabric know, that’s enough to rest our case. The sec- of American life, then we can build an eco- ond thing I would tell you is, there are— nomic, a normal economic infrastructure in not all the business people that have been these distressed areas so that the next time on this trip are right here in Phoenix, and a recession comes along, we won’t be hurt

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so badly here. And then when the pickup good for America. And my only regret is that comes, everybody will benefit instead of just we don’t give ten times as many of them a few. every year. And if we have institutions like So I can’t thank you enough. But I do want Arizona Multibank and MICRO every- to emphasize what—Gene Humphrey was a where—we have the networks out there, little too modest here. We do have a substan- again, to make the contacts—I think there’s tial number of business leaders heading com- really very little limit to what we can do in panies more or less in the size range of getting more money for micro loans, because Enron, who are helping. But we are nowhere they plainly work. near where we need to be. We need hun- Is the average person, the average size of dreds, we need thousands of people with the the business, a single employee, self-em- kind of commitment that he’s manifested, ployed? Or is it two? because without these relationships, the deci- Mr. Gordon. It’s a sole proprietor, sir. sions cannot be made to put the money The President. Sole proprietor? there. Thank you. Mr. Gordon. Sole proprietor. Although they do get help from their family. It’s just— The discussion continued. [ ] it’s a family business. It’s not only that self- The President. I’d like to ask a question— employed—but that’s what makes it, it guar- thank you. antees its success, because of the support. I’d like to ask Frank or Andrew a question. The President. That’s why they repay the What is the average size of a microenterprise money back, isn’t it? loan that you give? Mr. Gordon. Yes. Andrew Gordon. For the last 10 years, The President. Thank you. Mr. President, it has been under $2,500. And The discussion continued. those $2,500 make a difference. Our default [ ] rate, after lending over $7 million in Arizona, The President. I’d like to say something sir, the default rate is less than 4 percent. about both these presentations. First of all, The President. Let me say that this is— the way the new markets initiative works in give him a hand. [Applause] This is a fairly terms of who gets the tax credits and who typical experience worldwide. qualifies, the way this works is, people that I got interested in this 15 years ago, when invest in a business enterprise can get up to I met a man who was trained in the United a 25 percent tax credit for the money they States and went home to Bangladesh and put up, then they qualify for every dollar they founded—one of the poorest countries in the put up for $2 in bank loans that are Govern- world—founded a community bank making ment-guaranteed, and the Government guar- microenterprise loans to poor village women, antee dramatically lowers the interest rates average about—then—probably $20. Today, on the bank loan, so that between the tax they average about $50. But that’s a lot of credit and the lower interest rates, you re- money, in American terms, given the size of duce the relative risk of investing in these their economy. areas to make it more attractive. And they had a 96 percent repayment rate. And existing businesses qualify every bit Now he’s made millions of these loans, in as much as new businesses do; it is the area— a country with 100 million people. So I’m— where do the people live; what is their per one of the things I’m quite proud of is that capita income; what is the unemployment now, under our administration, we now fund rate; how much do we need the new invest- 2 million microenterprise loans every year in ment here? So we could never get into—it poor, poor villages in Africa, in Asia, in Latin would be a bureaucratic nightmare to try to America. make distinctions between existing and new But again I say, if it’s good enough for us businesses. Everybody’s eligible. It’s people to do for them—which we need to do, so we’re trying to help and places we’re trying those countries can keep their democracies to reach. alive, and be good citizens, and not cause The only other thing I would like to say wars, and have a decent life—it’s certainly is to thank you for what Univision is doing

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here and for what Univision doubtless will flict in Sierra Leone and bringing peace and do to publicize this meeting to the Hispanic a brighter future for its people. world in America. As you know, I’m very I thank President Eyadema and the Gov- close to Henry Cisneros, and I think that the ernment of Togo for hosting the peace talks, American people should know that next to and the Economic Community of West Afri- the Vice President, the two people most re- can States (ECOWAS), the Organization of sponsible for everything we’ve done in this African Unity (OAU), the U.N., and my Spe- community development area over the last cial Envoy, Reverend Jesse Jackson, for pro- 6 years are the present HUD Secretary, An- viding critical support to the peace process. drew Cuomo, and his predecessor, Henry Neighboring countries also provided refuge Cisneros. So this is, indeed, something to cel- to hundreds of thousands of Sierra Leoneans ebrate. who fled the conflict and atrocities in their So the only thing I want to say is when country. Their willingness to open their arms you start building that building down here, to those in need is an example that inspires hire some of these folks and make sure it’s us all. a good deal. Thank you very much. Thank We are committed to working with you all. ECOWAS, the U.N., and the OAU to ensure appropriate support for implementing the NOTE: The President spoke at 5:55 p.m. in the agreement and beginning reconciliation ef- La Canasta Mexican Food Products factory. In his forts. We will work with the people of Sierra remarks, he referred to civil rights leader Jesse Leone and the international community to Jackson; Arizona State Attorney General Janet support the safe return of more than one mil- Napolitano; Oregon State Treasurer Jim Hill, lion refugees and internally displaced people president, National Association of State Treas- urers; Leo Guzman, president, Guzman & Co.; and the reconstruction of the country. Marianna Spraggins, senior managing director, Smith Whiley & Co.; Gene Humphrey, president Proclamation 7208—To Facilitate and chief executive officer, Enron Economic De- velopment Corp.; Steven Burd, chairman, presi- Positive Adjustment to Competition dent, and chief executive officer, Safeway Inc.; From Imports of Lamb Meat John C. Corella, president, Corella Companies; July 7, 1999 Myrna Sonora, vice president and general man- ager, Univision 33/KTVW; Michael Welborn, By the President of the United States chairman and chief executive officer, Bank One of America Arizona; Andrew Gordon, president, Arizona Multibank Community Development Corp.; A Proclamation Frank Ballasteros, chief administrative officer, 1. On April 5, 1999, the United States MICRO; Leonard Moreno, president, Moreno International Trade Commission (USITC) Welding, Inc.; Yolanda Kaizer, president, Build- transmitted to the President a unanimous af- er’s Book Depot; Josie Ippolito, president, La Ca- firmative determination in its investigation nasta Mexican Food Products, Inc.; and former under section 202 of the Trade Act of 1974, Secretary of Housing and Urban Development Henry G. Cisneros, president and chief operating as amended (the ‘‘Trade Act’’) (19 U.S.C. officer, Univision Communications, Inc. 2252), with respect to imports of fresh, chilled, or frozen lamb meat, provided for in heading 0204 of the Harmonized Tariff Statement on the Sierra Leone Schedule of the United States (HTS). Under Peace Agreement section 202 of the Trade Act, the USITC de- July 7, 1999 termined that such lamb meat is being im- ported into the United States in such in- On behalf of all Americans, I congratulate creased quantities as to be a substantial cause President Ahmed Tejan Kabbah and Revolu- of the threat of serious injury to the domestic tionary United Front leader Foday Sankoh industry producing a like or directly competi- on the signing of a peace agreement today tive article. Further, the USITC, pursuant to in Lome, Togo. The agreement offers the section 311(a) of the North American Free hope of ending nearly 8 years of terrible con- Trade Agreement Implementation Act (the

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‘‘NAFTA Implementation Act’’) (19 U.S.C. that these actions will facilitate efforts by the 3371(a)), made negative findings with respect domestic industry to make a positive adjust- to imports of lamb meat from Canada and ment to import competition and provide Mexico. The USITC also transmitted to the greater economic and social benefits than President its recommendation made pursu- costs. ant to section 202(e) of the Trade Act with 5. Section 604 of the Trade Act, as amend- respect to the action that would address the ed (19 U.S.C. 2483), authorizes the President threat of serious injury to the domestic indus- to embody in the HTS the substance of the try and be most effective in facilitating the relevant provisions of that Act, and of other efforts of the domestic industry to make a acts affecting import treatment, and actions positive adjustment to import competition. thereunder, including the removal, modifica- 2. Pursuant to section 203 of the Trade tion, continuance, or imposition of any rate Act (19 U.S.C. 2253), and after taking into of duty or other import restriction. account the considerations specified in sec- Now, Therefore, I, William J. Clinton, tion 203(a)(2) of the Trade Act, I have deter- mined to implement action of a type de- President of the United States of America, scribed in section 203(a)(3). However, pursu- acting under the authority vested in me by ant to section 312(a) of the NAFTA Imple- the Constitution and the laws of the United mentation Act (19 U.S.C. 3372(a)), I have States of America, including but not limited determined that imports from Canada and to sections 203 and 604 of the Trade Act, Mexico, considered individually, do not ac- and section 301 of title 3, United States count for a substantial share of total imports Code, do proclaim that: and do not contribute importantly to the (1) In order to establish a tariff-rate quota threat of serious injury found by the USITC. on imports of fresh, chilled, or frozen lamb Accordingly, pursuant to section 312(b) of meat classified in HTS subheadings the NAFTA Implementation Act (19 U.S.C. 0204.10.00, 0204.22.20, 0204.23.20, 3372(b)), I have excluded lamb meat the 0204.30.00, 0204.42.20, and 0204.43.20, sub- product of Canada or Mexico from the action chapter III of chapter 99 of the HTS is modi- I am taking under section 203 of the Trade fied as provided in the annex to this procla- Act. mation. 3. Such action shall take the form of a tar- (2) Such imported lamb meat that is the iff-rate quota on imports of fresh, chilled, or product of Canada, Mexico, Israel, and of frozen lamb meat, provided for in HTS sub- beneficiary countries under the CBERA and headings 0204.10.00, 0204.22.20, 0204.23.20, the ATPA, and of developing countries listed 0204.30.00, 0204.42.20, and 0204.43.20, im- in general note 4(a) to the HTS, shall be ex- posed for a period of 3 years plus 1 day, with cluded from the tariff-rate quota established annual increases in the within-quota quan- by this proclamation, and such imports shall tities in the second and third years, as pro- not be counted toward the tariff-rate quota vided for in the annex to this proclamation. limits that trigger the over-quota rates of 4. Except for products of Canada, Mexico, duty. Israel, beneficiary countries under the Carib- bean Basin Economic Recovery Act (3) In the event that a quota quantity es- (CBERA) and the Andean Trade Preference tablished by this proclamation and allocated Act (ATPA), and other developing countries to a country or to ‘‘other countries’’ is signifi- that have accounted for a minor share of cantly underutilized, the United States Trade lamb meat imports, which shall all be ex- Representative is authorized to reallocate all cluded from this restriction, such tariff-rate or part of the unfilled portion of such quota quota shall apply to imports of lamb meat quantity to any other country or countries from all other countries and the in-quota and, upon publication of notice in the Fed- quantity in each year shall be allocated eral Register, to modify the HTS provisions among such countries. Pursuant to section created by the annex to this proclamation to 203(a)(1)(A) of the Trade Act (19 U.S.C. reflect any such reallocation. 2253(a)(1)(A)), I have further determined

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(4) Any provisions of previous proclama- tation Act (the ‘‘NAFTA Implementation tions and Executive orders that are incon- Act’’) with respect to imports of lamb meat sistent with the actions taken in this procla- from Canada and Mexico. mation are superseded to the extent of such After considering all relevant aspects of inconsistency. the investigation, including the factors set (5) The modifications to the HTS made forth in section 203(a)(2) of the Trade Act, by this proclamation, including the annex I have implemented actions of a type de- hereto, shall be effective with respect to scribed in section 203(a)(3). I have deter- goods entered, or withdrawn from warehouse mined that the most appropriate action is a for consumption, on or after 12:01 a.m. e.d.t. tariff-rate quota on imports of lamb meat on July 22, 1999, and shall continue in effect with an increase in currently scheduled rates as provided in the annex to this proclamation, of duties for imports within and above the unless such actions are earlier expressly tariff-rate quota level. I have proclaimed modified or terminated. such action for a period of 3 years and 1 day In Witness Whereof, I have hereunto set in order to facilitate efforts by the domestic my hand this seventh day of July, in the year industry to make a positive adjustment to im- of our Lord nineteen hundred and ninety- port competition. nine, and of the Independence of the United Specifically, I have established a tariff-rate States of America the two hundred and quota for lamb meat in an amount equal to twenty-fourth. 31,851,151 kg. in the first year (July 22, 1999, William J. Clinton through July 21, 2000), an amount that is equal to imports of lamb meat during cal- [Filed with the Office of the Federal Register, endar year 1998. The tariff-rate quota 11:48 a.m., July 8, 1999] amount will increase by 875,342 kg. annually in the second and third years of relief. I have NOTE: This proclamation was published in the also established individual country allocations Federal Register on July 9. for product imported from Australia, New Zealand, and an ‘‘other country’’ category Memorandum on Imports within the tariff-rate quota, which reflect the of Lamb Meat actual shares of each country in calendar year 1998. I have established increased rates of July 7, 1999 duty for imports within the tariff-rate quota Memorandum for the Secretary of the amount: namely 9 percent ad valorem for im- Treasury, the Secretary of Agriculture, the ports in the first year of relief; 6 percent ad United States Trade Representative, the valorem for imports in the second year; and Director of the Office of Management and 3 percent ad valorem for imports in the third Budget, the Director of the National year. I have established increased rates of Economic Council duty for imports above the tariff-rate quota levels: namely, 40 percent ad valorem in the Subject: Action Under Section 203 of the first year of relief, 32 percent ad valorem in Trade Act of 1974 Concerning Lamb Meat the second year, and 24 percent ad valorem On April 5, 1999, the United States Inter- in the third year. national Trade Commission (USITC) sub- I have also determined that implementa- mitted a report to me that contained: (1) a tion of adjustment assistance measures based determination pursuant to section 202 of the on authorized programs of the Department Trade Act of 1974, as amended (the ‘‘Trade of Agriculture will facilitate efforts by the do- Act’’), that imports of lamb meat are being mestic lamb meat industry to make a positive imported into the United States in such in- adjustment to import competition. In this re- creased quantities as to be a substantial cause gard, I instruct the United States Trade Rep- of threat of serious injury to the domestic resentative (the USTR), the Secretary of Ag- lamb meat industry; and (2) negative findings riculture (the Secretary), the Director of the made pursuant to section 311(a) of the North Office of Management and Budget, and the American Free Trade Agreement Implemen- Director of the National Economic Council,

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in consultation with the U.S. industry, to with the Secretary, and the Director of the transmit to me a set of substantial adjustment Office of Management and Budget to trans- assistance measures that would improve the mit to the USITC no later than 30 days from competitiveness of the U.S. industry and fa- today a list of benchmarks that the USTR cilitate efforts by the industry to adjust to recommends that the USITC use in connec- import competition. tion with its monitoring and in preparing its I further determine, pursuant to section report. These benchmarks are to be focused 312(a) of the NAFTA Implementation Act, on industry efforts to adjust to import com- that imports of lamb meat produced in Can- petition and on price trends for domestic and ada and Mexico do not account for a substan- imported lamb meat. tial share of total imports of lamb meat and The United States Trade Representative are not contributing importantly to the threat is authorized and directed to publish this of serious injury. Therefore, pursuant to sec- memorandum in the Federal Register. tion 312(b) of the NAFTA Implementation William J. Clinton Act, the safeguard measure will not apply to imports of lamb meat, whether fresh/chilled [Filed with the Office of the Federal Register, or frozen, that are the product of Canada 8:45 a.m., July 9, 1999] or Mexico. NOTE: This proclamation was published in the Similarly, the safeguard measure will not Federal Register on July 12. apply to imports of lamb meat that are the product of Israel, beneficiary countries under the Caribbean Basin Economic Recovery Act Letter to Congressional Leaders or the Andean Trade Preference Act, or on Imports of Lamb Meat other developing countries that have ac- July 7, 1999 counted for a minor share of lamb meat im- ports. Dear Mr. Speaker: (Dear Mr. President:) I have determined that the actions de- I am pleased to provide to the Congress scribed above will facilitate efforts by the do- documents called for by section 203(b) of the mestic industry to make a positive adjust- Trade Act of 1974, as amended, pertaining ment to import competition and provide to the safeguard action that I proclaimed greater economic and social benefits than today of imports of lamb meat. costs. These actions will provide the domestic Sincerely, industry with necessary temporary relief William J. Clinton from increasing import competition as well as assistance from existing U.S. Government NOTE: Identical letters were sent to J. Dennis Hastert, Speaker of the House of Representatives, programs, while also assuring our trading and Albert Gore, Jr., President of the Senate. partners continued access to the United States market. The over-quota tariff rates I have established will provide substantial cer- Interview With Ron Brownstein of tainty to the domestic lamb industry regard- the Los Angeles Times ing import levels. July 6, 1999 Pursuant to section 204 of the Trade Act, the USITC will monitor developments with 2000 Election respect to the domestic industry, including Mr. Brownstein. I enjoyed being out the progress and specific efforts made by there today after spending so much time in workers and firms to make a positive adjust- the last few weeks with the Vice President ment to import competition. The USITC will and the Governor. And we have so much provide to me and to the Congress a report 2000 going on already, it seems a little odd, on the results of its monitoring no later than you know, in some ways. I mean, you’ve the date that is mid-point of the period dur- got—you and the Congress both have 16, 17, ing which the action I have taken under sec- 18 months left, and you know, it’s almost like tion 203 of the Trade Act is in effect. In this we’re in a fall—it just seems somehow pre- regard, I instruct the USTR, in consultation mature to me, I don’t know.

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The President. It is, but I think part of be bridged. But to go back to what I’m doing it is the—that’s—I think we’re doing what now, it would seem to me that this is, from we should do, which is to keep plugging at my point of view, with the whole New Demo- the policy stuff, because in fairness to all the crat philosophy I try to articulate, the embod- candidates, the States, in their rush to main- iment of everything I believe. But it also is tain maximum influence, have continued to consistent with what entrepreneurial Repub- move these dates up. So I don’t really see licans believe, because this is not a Govern- that they had any choice. And when they’re ment program in any conventional sense, and out there doing it, you’ve got to cover them. it is designed to spawn private sector growth. But I think—— Mr. Brownstein. Is it harder to get things New Markets Initiative done in Washington? The President. I wouldn’t—that depends Mr. Brownstein. What is the principal on how—the attitude of Congress—I think thing you’re hoping to accomplish on this that—in both parties. Not necessarily. I think tour? Is it to push forward the legislation, in some ways, it may play to the desire of or is it something else? every person in public life, including the The President. I think the principal thing Members of the House and the Senate in I’m hoping to accomplish, which I think will both parties, always to be relevant and to say, help to push forward the legislation, is to con- hey, I’m here, too. So in a funny way, it could vince the critical mass of the economic and increase our ability to act, both this year and political decisionmakers in this country that next year. And as I tell the Republicans all there is both an opportunity and an obliga- the time—and the Democrats—if we solve tion in the underdeveloped parts of this. everything, if we reached an agreement on You’d be amazed. When I talk to Social Security, Medicare, if we committed businesspeople, I say, look, forget about the to pay the debt off in 15 years, which is some- moral obligation and the people that deserve thing that I think is a huge, still, sleeper op- a chance in life, although surprisingly, a lot portunity for the American economy—think of these business executives feel that. They of all the things that would still be there for feel that they’ve benefited in their own per- them to disagree about. sonal holdings, their businesses have. The stock market more than triples; the econo- Working With Congress my’s got the most peacetime expansion in Mr. Brownstein. Do you think you can history. If we get fortunate, it’ll be the long- reach an agreement? What do the prospects est expansion in history, including wartime feel like to you now—agreement on entitle- expansions, if we keep it going, you know, ment and taxes? if we’re lucky and prudent. So I’ve been very The President. Prospects feel, to me, bet- touched that a lot of them feel the moral ter than conventional wisdom would hold pull of this. they are. What I have to be able to do is But what I say to them is that when I start- to convince both parties that doing the right ed thinking about this economy, seriously, thing is usually the best politics. The people probably 12 years ago now, and thinking have hired us to work, and they expect us about what it would take to make America to work, and that there will still be this huge work again. And then I tried to put the ideas array of things over which they have genuine together a decade ago, in 1989 and ’90 and disagreements, you know? We have big dis- then in ’91, I gave those speeches at George- agreements that are important on education, town. Most conventional economists believe, so that no matter what we do on education, even my own economists—Laura Tyson, who a lot of the disagreements will remain. And did a fabulous job for me—I remember sit- a lot of the opportunities will remain, you ting around the table at Little Rock in De- know, for fertile debate. cember of ’92 and having her say, ‘‘Mr. Presi- We have these massive disagreements, on dent, most economists, including most guns, that are huge, where there seems to Democrats, believe that if you get the unem- be no reasonable prospect that the divide can ployment rate much below 6 percent for very

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long’’—do you remember that, Gene? We on welfare, but the welfare rolls have been were at the Governor’s mansion—— cut in half, so the ones left are the hardest National Economic Council Director to place—and the disabled. And we’re going Gene Sperling. I remember Bob and I to do that—presumably, we are going to have brought in Laura and Larry so that we could a big bipartisan agreement on that, to let all tell you at once, and this was when we them keep their Medicaid health insurance were in the—— when they come in. The President. If you create more than I don’t think you went to New Hampshire 8 million jobs in your first term, and we get with me when I did the forum on this, but this unemployment rate much below 6 per- there’s this former Olympic skier in New cent, we’ll have inflation. The Fed will have Hampshire who is now confined to a wheel- to really raise interest rates; it’ll break the chair, and I think he’s quadriplegic. Any- back of the recovery. And I argued to the way—but he’s seriously injured. He’s got contrary because of two things. I thought if $40,000 in Medicaid bills. But he’s got a job we had open markets and maximized the im- and makes $30,000 a year. You and I as tax- pact of technology, that it would tend to dra- payers, we’re going to pay the Medicaid bills matically increase productivity and hold regardless, so we’re better off with him mak- down prices, and, of course, you know, that’s ing $30,000, and it’s a better society with what’s happened. people like that working. So you can do that. And all over the country today, if you look Mr. Brownstein. That’s the second way? at the most sophisticated labor unions, you The President. Yes, that’s the second way. don’t see a bunch of strikes here because But the third way is, by far, the biggest way, we’re having good times, people are saying and that is to go into these areas where the we remember the bad times, we know we’re whole economic base eroded sometime over in the global economy, we want wage in- the last 30 years; principally, the inner-city creases, but we want them to be consistent areas and the rural areas and the Native with the profitability and the productivity of American reservations where we’re going the firm we’re in. It’s very interesting. now, where, arguably, there never was any There’s a whole—and I think part of this really indigenous independent economic is reinforced by the fact that all the worker base. And try to actually do what is necessary pension funds are in the market and, you to put in place a private sector. It cannot know, there are a lot of reasons for all this. be done with Government spending alone, But I think that what’s happened is we’re because there are a lot of things that govern- now down to unemployment below 4.5 per- ments can do—you know, the Head Start, cent, with no substantial inflation. We’ve had the health care, the education, all that stuff, some oil spikes and other spikes, but basically the infrastructure. But you have to get some things are rocking along here. free enterprise in there. There are not But now we’ve reached a point where peo- enough Government jobs to do that. ple are saying, ‘‘Well, at this level of labor On the other hand, with Government ne- force participation, is there a way to continue glect, it’ll never happen. So we started this to grow the economy without sending infla- back in ’93 with the economic plan, with the tion up so much that the Fed will have to empowerment zones, doubling the earned raise interest rates and we’ll break it?’’ So income tax credit, doing those things within as a pure economic perspective—and I have the enterprise communities, both giving peo- argued repeatedly that there are only three ple tax incentives to go into those areas and options here—you either have to find new then tax credits to hire people. And then we markets abroad, which I strongly favor, and had the community development banks, I’m still working on trying to get our party which have had, like all such things, mixed together on a trade position—that’s option records of success, but on balance have done one. well. Option two is to take discrete but dis- Then we began to vigorously push the persed populations that are out of the labor Community Reinvestment Act, which has force and bring them in. That’s still people probably had the biggest aggregate impact

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but that tends to be more widely dispersed. tunity here is. I mean, that’s why we’ve taken So how we got to this new markets proposal a lot of these businesspeople, and we’re hav- and—— ing all these announcements about what Mr. Brownstein. Can I ask right there, we’re doing with the—you know, right how does this—I mean, I was going to ask now—is that it is very important that people you about, building on that record, the things see these opportunities as they are and also that you have already done, what do you see see the problems. But at least see that there this adding to what you have already done? really is opportunity. What is the specific increment you’re trying Now, if you believe, as I do, that there to bring here? are a lot of people in business and in politics The President. I think it does two things. who think as well as we’re doing now, we Number one, it is available nationwide and have a moral obligation to try to finally get not just where the empowerment zones or some sustaining free enterprise into these the community development banks are, or areas, and you show that it’s good business, where there has to be a particularly com- and then you lower the relative risks, you’ve mitted community banker who loves the really done something. But the first thing you Community Investment Act. It’s nationwide have to do is to make sure that there is available. That’s the first thing. That’s a big enough accurate knowledge and communica- deal. If you look at the one in New York tion out there to make the market work. we’ve got, it goes into Harlem, in the Any economist will tell you that all markets Bronx—there are probably a million people work based on—still work through human in New York City alone living in neighbor- beings based on adequate knowledge. And hoods with unemployment rates above 10 I would argue that there is far less than per- percent, untouched by the empowerment fect knowledge within the American investor zone. I don’t know, maybe there’s more. But community about the opportunities in these at least a million. developing areas. Mr. Brownstein. It broadens your reach. Mr. Brownstein. It sounds like what The President. Nationwide. And we don’t you’re trying to do this week is almost a trade have to keep going back to Congress over mission within your own country. and over and over again saying, ‘‘Give us 10 The President. I’m taking a trade mission more empowerment zones and then to America this week. Which is why, you see, everybody’s got different spending prior- my one sure-fire applause line in all these ities.’’ Or Republicans say, ‘‘We like tax cuts; speeches is, we’re going to give American we don’t like the spending you do, and you business investors the same incentive to in- don’t have to do any of that.’’ You put it out vest here they have in developing economies there and you say, ‘‘Here it is, nationwide.’’ overseas. It’s like a trade mission. Secondly, what it is, is, particularly a heavy emphasis on venture capital, because you get Community Investment Act up to a 25 percent tax cut for investing in Mr. Brownstein. You mentioned Com- vehicles that make direct investments to put munity Investment Act having the broadest up the venture capital. And then you also impact—financial services bill going to con- lower the relative risk of bank loans by saying ference. You have threatened to veto over that for every dollar you put up in venture the CRA provisions. capital, you’re eligible for $2 in borrowing, The President. Don’t we have good CRA Government guaranteed, which cuts the in- provisions now—— terest rate way down. Mr. Brownstein. In the House. And keep in mind, all this stuff would be The President. ——in the House? available within the empowerment zones, Mr. Brownstein. The Senate provisions too, so everywhere, you’re lowering the rel- you said you would veto? ative risk of investment enough to make it The President. We’re going to work hard more appealing. But the reason I said that for those House provisions. I don’t see how— the most important thing was to impact the look, I know sort of ideologically where Phil economic and political links to the oppor- Gramm is, but you cannot look at the fact

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that we have the strongest economy in a gen- we will, I think, at least make the relative eration, maybe ever. During the same period risk of investment equal to what it would be of time, when—this was a 22-year-old law, in most other places. and over 95 percent of all the money loaned under it has been loaned in the time that Budget Negotiations we’ve been here with this administration. Mr. Brownstein. Let me not jump You cannot make a factual argument that around, but I would like to try to touch on the CRA is so burdensome to bankers that a couple of other things and then come back it’s somehow bad for America, it’s been good to one other thing on the investment side. for America, and it’s been good for banks. You mentioned before you were a little more So I feel very strongly about it. optimistic than conventional wisdom about Mr. Brownstein. I feel ground approach- the prospect, and there does seem to be a ing, so I’m going to try to talk about a couple little change in the wind as the surplus num- of other issues with you. bers have gotten better. The President. So we’re trying to get Let me ask you first, do you think a broad- three things done. Number one, we want to based deal would have to include a broad- highlight what we’ve been doing the last 61⁄2 based tax reduction beyond what you’ve pro- years and what the positive impacts are. posed, and are there some that are more ac- Number two, we want to promote the new ceptable to you than others? markets initiative because it’s nationwide, The President. I think what’s most impor- and it’s a heavier emphasis on venture capital tant to me, because I think this will clarify and on direct investment, equity investment. the choices to the Republicans as well as to And number three, we want to increase the our people, what’s most important to me is awareness of the opportunities there in these to try to do the first things first. That is, I areas because I think we have to build a dif- would like to lock in a commitment which ferent economic infrastructure in these areas. would assure that even if we couldn’t reach If we do that, the next time there is a reces- agreement on the next steps, we’d run Social sion, they won’t be totally wiped out; they’ll Security out to 2053 and pay the debt off, go down like the rest of the country. And the publicly held debt off in 15 years. then when we get out of the recession the Then I would like to move to Medicare, next time, they’ll come up like the rest of where I really do believe we can make an the country. But if they have no resources, agreement now. We know that. They will they get hurt terribly in the recessions, be- have to admit—those that don’t agree with cause they have a lot of marginal employees. my prescription drug proposal, that I’ve done And then when we come out, they don’t it in a fiscally responsible way that will not come out. explode in the out-years—then we can look Basically, I think people have not thought at what we’ve got. I don’t think they—if you through here that the economic infrastruc- look at what they say they are going to do, ture in most of these places literally dis- they say they’re willing to go to basically a appeared somewhere over the last 30 years kind of a lockbox like I have, a real savings and hasn’t been replaced for anything. on Social Security, not something you can Now, it turns out to be in the self-interest go back and raid. of the investor in the corporate community If you do that and if you take the tax pro- to replace it. And these people are out there posal they’ve got on the books now and they dying to work. Yes, there are all kinds of ob- just fund my defense numbers, not theirs, stacles, special obstacles in every one of these my defense increases, we’re already in the places: transportation in Appalachia, the level hole again running a deficit with a 30 percent of education, the skills, you’ve got to do more cut in discretionary spending. That is, I don’t on-the-job training—there are all kinds of think that all these numbers have been added problems. But the opportunity there is sig- up, and I think that if we really sit down nificant, and if we have sufficient tax incen- and don’t get—you know, I haven’t attacked tives and if the Government does our part the money. I haven’t gone out on a budget in spending for education and training, too, tirade or anything like that.

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What I want to do is to really show them thing that may have a bad result unless it what I think the choices are and then discuss is part of an overall plan. it with them and debate with them. But I Mr. Brownstein. As part of an overall think there can be an omnibus agreement, plan, it might make sense. and I’ve already said I think there ought to The President. And in fact, what I pro- be a tax cut. We can afford to give some of pose—look what I propose in the midsession this money back to the American people. My review. I said, ‘‘Okay, let’s have a hard Social own view is, the most responsible way to give Security lockbox, take Social Security off it back is in the USA accounts, because it budget, get rid of that, do it in a way that gives hundreds of dollars a year from now pays the debt off in 2015, and takes all the on to working families in ways that will en- interest savings from the declining debt and able them to save for their own retirement. puts it into Social Security. ‘Two, here’s my Medicare fix, and it will Tax Cuts pay for taking Medicare out to 2027, plus Mr. Brownstein. Do you like the idea of almost all the prescription drug benefits, and raising the 15 percent bracket as a possible you need a little bit of a surplus to pay for tax cut? 2027 prescription drug benefits, plus reform. The President. You mean lowering the 15 Here’s my defense number; here’s what my percent? tax cut cost; and here’s what you have left Mr. Brownstein. Lowering the 15 per- to pay for education and children, because cent—raising the income level that is taxed you don’t want the budget to get too far out at 15 percent. of balance between the old and the young The President. We’ve got to look at all— for education, for children, for medical re- the important thing to me is, if you do that, search, for the environment, and other essen- then you have to give up the retirement sav- tial Government services.’’ ings. And so I’ll say again, let’s do first things So I’ve proposed, in effect—and things first. Let’s figure it out. The way to do this that the Republicans like—transportation, all is, before you decide what kind of tax cuts that kind of stuff. I’ve proposed some in- you want, is to figure out how much money creased spending over a decade, a substantial have you really got for it, and then you can tax cut, and a fix for Social Security and talk about what the best way to do it is. Medicare. If they want a larger tax cut within that, and they are still committed, then Budget Caps they’re committed to a legitimate Social Se- Mr. Brownstein. And how much have you curity fix, that is not something where you really got—Bob Greenstein’s group put out can wind up, raid it again to pay for your a study last week, which the Post imme- tax cut. diately picked up an editorial, arguing that Then I think that we ought to be able to this big surplus number is premised on main- sit down and say let’s put all these pieces taining the caps on discretionary spending, out here and move them—but you can move which—— the pieces around, but the final puzzle has The President. Which are too tight. to look more or less the same. In other words, Mr. Brownstein. ——which are too tight. I don’t think a lot of them—this is ironic, Do you think the caps should be lifted, and you know; it’s almost like the parties have are we assuming, or are we spending the sur- switched places on this—I’m not sure a lot plus that is exaggerated? of them believe it’s as important as I do to The President. If you look at what I did, try to make the country debt-free by 2015. if you look at my proposal, coming after the See, I think, to me, that’s a bigger tax cut midsession review, we propose lifting the than we could ever give—it’s a bigger tax cut, cap—I don’t like the term ‘‘lifting the caps,’’ if you’re talking about disposable income in because that implies that we would again— the hands of the taxpayers, it would be worth that’s like a tax investment. To me, lifting more then even their tax cut. See, if we adopt the caps is like doing a tax increase. That’s their tax—let’s just say we adopted their tax like taking something that’s doing a good cut. I am convinced as a practical matter you

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would wind up with substantial deficits, high- dependent industries. We’ve had—gosh, our er interest rates, less savings, and higher out- agricultural sector and our airplane, our com- of-pocket costs for everything from business mercial airplane sector have really been hit loans to home mortgages to college loans to hard by this financial crisis in Asia. So it consumer loans to car payments. would be better for us in that way, and it And if that’s true—and I think that experi- would be better for our trading partners. ence, by the way—I think, you know, I’ve I believe that in a global economy, an got some experience on our side, on my side economy that’s as globalized as this one, the of the argument now. I mean, look how much richest countries—the richest countries are the average middle class person has saved better off almost imagining themselves as since 1993. What tax debts do we get? Well, States do now in the American system. And if you’re under $30,000 a year and you’ve the more they can be debt free, the better got a family, you’ve got some benefit from off they’re going to be. the earned income tax credit. If you have someone in college or you’re going to college, you’ve got a big tax cut there. If you have Nation’s Direction and Gore Candidacy a child, you’ve got the $500 tax cut there Mr. Brownstein. Can I ask—I’ll be But 100 percent of the people that have thrown out of the ‘‘Society of Political Re- any indebtedness—and keep in mind, we’ve porters’’ if I don’t ask your sense of—great got two-thirds of the folks now who own economy, Dow up, crime down, welfare homes now, and almost all of them have down; yet, right track, sense of satisfaction mortgages—— with the direction the country is following. Mr. Brownstein. The interest—— The Vice President, even though it’s the year The President. A hundred percent of before, is trailing substantially. What do you them have got—they’ve got mortgage sav- think’s going on? Is there a desire for change ings, credit card savings, car payment savings. at the end of your two terms. Tail end? And anybody that’s got any kind of debt has The President. I think there’s a constant saved money because we have chosen to get desire for change. But I think what you’ll see down to balancing the budget and then mov- by next year is that the Vice President will ing into the surpluses. Now, if our country be the candidate of change. People will have were debt free, consider the potential advan- to decide whether they want the change tages for the average citizen or even the low going on. The rhetoric of compassionate con- income worker. servatism, half those speeches sound like I Assuming we still had sufficient funds to gave them in ’92. pay our obligations to the poor and to fulfill So I think we have to—when we get down the basic Government functions, you would to the specifics and people get to focus on have higher business investment, less infla- tion, more money for real wage increases, the nature of the change, I think that the and lower credit costs for all consumer items. Vice President will do fine. So I feel good Furthermore, if there were another global fi- about that. And by the way, I think the right nancial crisis and we tried to change the rules track numbers are coming back up. to minimize this happening again, and what I think—I don’t want to get into polling would happen in Asia, but no one can be and political commentary, but the combina- absolutely sure because there’s still a lot of tion of the conflict in Kosovo and the extraor- leveraged money out there in the global dinary shock to the country’s psyche that economy. Littleton proposed were the main things that The next time that happened, the United changed the right track/wrong track—— States would not be competing for money Mr. Brownstein. Are you comfortable in a very difficult environment. That would with the position the Vice President is in at mean that our trading partners could get this point? funds more readily at lower interest rates and The President. Yes. I think—and in his- it would cushion the shock of any downturn. torical terms, if you look at parallel elections, That would also be good for our export- you go back and check—where was Nixon,

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where was Bush, where were these peo- erty, not doing enough to reduce childhood ple?—I think as long as he’s out there articu- poverty. That was the—— lating the vision and saying what he’ll do if The President. I don’t think anybody’s he gets elected, and as long as he feels good done enough to reduce childhood poverty; about it, I think he’s doing fine. I think it’s you have to keep going. But if you look at good. the minimum wage, doubling the earned in- come tax credit, and what we’ve done—we’ve ‘‘Compassionate Conservatism’’ immunized 90 percent of the kids for the first Mr. Brownstein. I don’t suppose I can time in history, and we’ve got the lowest mi- talk with you in the limo? Can I ask you one nority unemployment rate ever recorded and last question? The other thing that’s been the lowest Hispanic unemployment rate ever going on, in addition to—I’m interested in recorded—I think we’ve made more head- your thought about what ‘‘compassionate way than anyone imagined we could when conservatism’’ means to you. As you say, we started. some of those speeches sound like—they But it’s a very difficult problem. talked about opportunity, community, re- sponsibility at various points. Is it an homage to what you’re doing, or do you see it as NOTE: The interview began at approximately 8 something that is fundamentally different p.m. aboard Air Force One en route from East St. Louis, IL, to Rapid City, SD. In his remarks, than the New Democrat agenda? the President referred to Gov. George W. Bush The President. Both. Yes, that is, I think of Texas. The transcript was released by the Office that based on what I’ve seen, it captures the of the Press Secretary on July 8. A tape was not rhetoric, and it’s very flattering in a way, you available for verification of the content of this know? Because it replicates the rhetoric. But interview. I think—and it, on some issues, seems to have discarded some of the harsher aspects of the Republican revolution of the last 5 Remarks in a Discussion on Youth years—immigration, for example. Opportunities in Los Angeles, But on other issues, it’s either blurring, like, where are they, really, on affirmative California action and choice?—not really clear—and on July 8, 1999 some places, you know, downright hostile to the position that I believe is sort of the Third The President. Thank you. Please sit Way position, including on civil liberties, like down. We’re running behind now. I’ve got the hate crimes legislation or on consumer to get to be more businesslike. Since Alexis protections like the Patients’ Bill of Rights has been so fulsome in her kind comments, or, most profoundly, on these gun issues. that was an example of Clinton’s second law So the question is, are the architects of of politics—always be introduced by some- the revolution in 1995, the contract on Amer- one you’ve appointed to a high position. ica, the heirs of Newt Gingrich who are still [Laughter] basically in control of the Congress, all of Let me say to, first, our host here in Rep- whom were early—almost all of whom, al- resentative Maxine Waters’ district, we’re de- most 100 percent—early endorsers of Mr. lighted to be here. I want to thank all of you Bush, is this an umbrella under which they who made it possible for us to come to this can be protected from the rainstorm of pub- beautiful facility. Let me say I am doing lic opinion until they get to where they can something today I never thought I would do what they want, or is it something dif- ever do, for those who have been on the tour ferent? I think the record is decidedly mixed with me; I came to Los Angeles to cool off. on that. [Laughter] It was 100 degrees in Washington when we left; it was 100 degrees in Appa- Childhood Poverty lachia; it was 100 degrees in the Mississippi Mr. Brownstein. I was going to ask you Delta; it was 100 degrees in East St. Louis; about Bradley criticizing you on child pov- it was only about 94 on the Indian reservation

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yesterday; and it was over 100 in south Phoe- Those of you who follow the business news nix. So I came to Los Angeles to cool off, know that every time the Federal Reserve and I thank you very much for that. meets there’s all this tense speculation, will I want to thank Secretary Daley and Sec- they raise interest rates or not? Well, what retary Slater who are here. And Reverend does that mean to these young people here Jackson, thank you for making this tour with with their yellow T-shirts on? It is that most us, and all the business leaders who have economists believe that there is a limit to how been with us. I want to thank Congress- low the unemployment can go, and a limit woman Millender-McDonald. We were just to how high the economic growth can go, over at the transportation academy in her dis- before you have so much inflation that you trict, and I enjoyed that very much. Con- have to stop it, which kills the economic re- gresswoman Loretta Sanchez, thank you for covery. being here. Congressman Xavier Becerra; Now, how can you keep it going? How can and Congressman Paul Kanjorski, who came we keep this recovery going—never mind all all the way from Pennsylvania, has been on these kids we’re here to hear about, just for every step of this tour, and I thank him. those of you who have done well in the stock Governor, thank you for making us feel market? How could you keep it going? The welcome. And Yvonne Burke, thank you. And easiest way to keep it going is to go to places I’d like to thank all the business leaders and where there aren’t enough jobs and there all the leaders from entertainment and ath- aren’t enough consumers, and create more of both—create more business owners, cre- letics and other things that are here today. ate more workers, create more consumers. I will be very brief because I want to hear That’s all growth completely without infla- from the young people here. I have believed tion. from the beginning of my tenure as President It allows America’s economic expansion to that in order for the American economy to continue, so there’s a real sense in which really work, and in order for the American every time we hire a young person off the society to work, every American should be- street in Watts and give him or her a better lieve that he or she had a chance to be a future, we are helping people who live in the part of it. And we’ve worked on this for some ritziest suburbs in America to continue to time. And you heard Alexis talking about the enjoy a rising stock market. And it proves economic statistics: we now have the longest beyond any doubt that we are all in this to- peacetime expansion in history, the lowest gether, that we’re all better off when the least minority unemployment rates ever recorded. of us do well. But everyone knows that there are still sub- And also, we have a chance here that we’ve stantial numbers of people in our distressed never had before, at least in my lifetime, cer- urban and rural areas and on our Indian res- tainly not since the American economy began ervations that basically have not been part to unravel in the late sixties. We have got of this recovery. a chance to actually build an economic infra- In Watts, for example, the unemployment structure in the inner cities and in rural rate has dropped by almost 50 percent, but America that will restore something like a is still three times above the national average, normal economy to places. just for example. And so it seemed to me There will always be—some times are several months ago—and I talked about this pretty good; some times won’t be so good. in my State of the Union Address way back But what we want for every American is to in January—that there was a way to tap the live in a community where at least he or she enormous feeling that a lot of our business has the same shot everybody else does. leaders have that they’ve done very, very well Now, the first 31⁄2 days, what we spent fo- in a stock market that’s more than tripled cusing on is how to get money into isolated in 6 years and a strong economy, and that places. That’s basically what we’ve been fo- they ought to give something back with the cusing on. And we talked a lot about the idea that it would actually be good economics things we’ve been doing since 1993. We’ve to give something back. had wonderful business leaders from all over

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America, by the way, of both parties—this learn and to continue to get training for a is not a partisan issue anyplace but Wash- lifetime, we won’t be able to do it. ington, DC, and I hope it won’t be there— The first place I went in Appalachia, 57 saying, ‘‘Hey, this is good business; this is percent of the people who live there never a good deal; we want to be a part of it.’’ And finished high school. It’s very remote. But we talked about this new markets legislation there’s a man there that expanded a firm that I have proposed which would give tax credits does business with all the high-tech compa- and Government guaranteed loans to people nies in the country from 40 to 850 employees who would invest to give equity to people by having all of his present employees do a to start businesses in the inner city and in continuous job training on every new person rural America. they try to take out of the hills and hollows And basically what I’ve asked the Congress of Appalachia. to do is to give businesspeople the same in- So there is no place, even in rural America, centive to invest in America they get to invest that can escape the reality that we must train today in poor communities in Latin America and educate our young people if we really or Asia or Africa or the Caribbean. I don’t want this to work. So that’s what we’re here want to take those opportunities away; I just about. want American communities to have the I thank Secretary Herman for this youth same shot at the future. opportunities initiative, and all of you who So, now, what we’re here today to say is are participating. So Alexis, why don’t you that even if we do all that, in the world we’re take over, and let’s hear from our folks. living in, there is a high premium in an infor- At this point, the discussion proceeded. mation society placed on knowledge, skills, [ ] what you know today, and what you can con- The President. Let me just say, Mel Farr, tinue to learn. One of the young people I who is a former all-pro football player from saw today is about to join the United States Detroit, is becoming the largest automobile Army, once in a gang, was working a com- dealer in America, and it’s just worked out. puter program in which he was able to match One of the announcements we made earlier someone in Russia who wanted to buy tires on our tour is that he has a lot of big financial with someone in Colombia who wanted to institutions who’ve agreed to buy his car sell them, and he could get a commission loans in bulk, which will enable him to ex- off of it in between. Well, I just give you pand all across America and put minority- that as one example. I saw a lot of other— owned dealerships in every community in I saw two young people who were designing this country. automobiles that would be less wind-resistant And for people who have modest incomes, and, therefore, would operate at higher rates you know, he has adapted this sort of car of efficiency. leasing proposal—you remember, this start- Another young man who was mixing ed a few years ago when people stopped buy- sound, so that if I—he told me if I sang a ing cars and started leasing them and leased song flat into his microphone he could tune them 3 years. Mel will lease people cars, give it up so I’d sound just fine. [Laughter] you leases for as short a period as 2 months. All these things make this point, and that’s But if you don’t pay, you can’t make off with why we’re here, to finish, in a way, with the the car; he’s got a device that will turn the most important thing of all—we can put in car off. [Laughter] So he soon will be respon- place the financial networks; we can create sible for the widest distribution of car owner- a lot of jobs; but our young people—and 60 ship in America with the largest number of percent of the young people, men and cars that won’t run. [Laughter] women—young men and women in the most This is actually a brilliant thing, because distressed areas of America are neither in he’s giving people a chance to have cars they school or at work still. And so we can do never could afford otherwise. He’s recog- all of these things and provide these invest- nizing that people who don’t have a lot of ments, but if our young people don’t have cash income have to live from month to the opportunity to learn and to continue to month. And he’s doing it in a way that is

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giving people a chance to run dealerships and provide the framework within which we who never could have run them before; and lower the risk of these investments as much they will all train people and hire the kind as is prudent. of people that Toyota Center is training. But we have to remember the human ele- So thank you, Mel, for a brilliant thing ment in all this. We were in East St. Louis you’re doing. yesterday, visited a Wal-Mart store in one of [The discussion continued.] the most distressed inner-city areas—I mean, Walgreens store, this beautiful Walgreens The President. Thank you. Let me just store—30 employees. The manager of the briefly say in closing, first of all, I want to Walgreens store was a 24-year-old African- thank all those who have participated and American girl that grew up in that commu- those who are here who have not said any- nity and got out of college and was just good thing, but by the power of their example are at what she did. And that company believed doing a great thing for our country. We have in her enough to give her a chance at the advocates here; we have investors; and we age of 24 to run a store with 30 employees. have those who are examples—particularly these young people who have spoken. An example. You’re an example. You’re an To me, this is the best of all endeavors example. You’re an example. All of you are because it is the morally right thing to do examples. and it is in the self-interest of every American The rest of us—who basically had a lot of who participates in it. I believe—I listen to luck and good fortune in life—you know, we these young people, and I read the notes on all like to believe we were born in log cabins their lives before I came here—you know, we built ourselves, but most of us were things happen to people in life, and the good helped along life’s way and we had a lot of things and the bad things, especially to our luck to get where we are. And most of us, children, are not evenly distributed. And yet, with all the bad things that happened to us, among all the poor people in America, there end life ahead of where we would be if all are people who could help us find a cure we got was what we just deserved. And we for AIDS, a vaccine; there are people who should remember that. could help us to—I talked to one of the And we should think about these children young men earlier who developed composite and remember that it is in the interest of parts for cars that would be as strong as steel America—the talent and the gifts and the and weigh a thousand pounds less and get richness of their souls and their spirits are 80 miles a gallon, or 90. There are people evenly distributed. But things happen to who could solve every problem out there. them or things happen to the place where The talent and the human spirit are evenly they happen to be born, or where they hap- distributed across racial and income lines. pen to live now, and we can make it better. But things happen to people and things If we can’t do it now, with this economy as happen to communities. In our inner cities strong as it is, we’ll never get around to doing and a lot of our rural areas, the economic it. bases that once made them organized, thriv- ing and successful, evaporated—and we did So when we leave here we should remem- a lousy job as a country of replacing that. ber that, and we should do it. Thank you very We were slow off the uptake. And in other much. places, like our Indian reservations, arguably, there never was an economic basis that NOTE: The President spoke at 12 noon in the would be self-sustaining. Founders’ Library at Southwest College. In his So what we do here is to say that this is remarks, he referred to civil rights leader Jesse not something the Government can do alone, Jackson; Gov. Gray Davis of California; Yvonne but the Government should do its part. And Brathwaite Burke, Los Angeles County super- this is not something the private sector can visor, 2d District; and Walgreens manager Angela be expected to do unless we provide the Tennon. training and the support for the young people

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Remarks to the National Academy sought to shine the spotlight on places still Foundation Conference in unlit by the sunshine of our present pros- Anaheim, California perity. A number of you have been along for July 8, 1999 what has truly been a remarkable ride. We’ve seen the power of people in public You know, Hazel, you might consider just and private life to work together in the Appa- skipping that hotel business and going right lachians and in the Mississippi Delta. We’ve into politics. [Laughter] I want to thank all seen the spark that retail investment can of you for your welcome. And I thank Hazel bring in the first shopping center built in dec- and her fellow winners behind us for remind- ades in East St. Louis, Illinois. We’ve seen ing us of why we’re here. Mayor Daley, thank the impact in the most basic infrastructure you for making me feel welcome—and, Sec- and housing opportunities, even in the re- retary Daley, Secretary Slater. Representa- mote regions of Indian country in South Da- tive Sanchez, we’re delighted to be in your kota, still the most left-behind part of Amer- district and to be here with other Members ica. of Congress who are here. In south Phoenix yesterday, in tempera- I’d like to say a special word of apprecia- tion to my wonderful friend, our former Sec- tures exceeding 100 degrees, we saw the retary of State, Warren Christopher, who is enormous benefits of community reinvest- here with us today and supporting this en- ment initiatives. And here, earlier today, we deavor. saw what education and job training can Since this is the last event for me in this bring to young people in Watts—people who weeklong odyssey across America to our— are normally identified with distressed neigh- what we called America’s new markets, I’d borhoods, showing me how to design auto- like to say a special word of thanks to the mobiles on a computer, or to conduct sophis- folks on the White House staff who made ticated business transactions between two it possible, including my National Economic different countries with young Americans 17 Adviser, Gene Sperling, without whom this years old picking up a commission for being never would have occurred. the middleman. And I want to say a special word of thanks I took this trip for three reasons. First, I to Reverend Jesse Jackson, who worked with wanted every American businessperson, Sandy Weill on the Wall Street Project, went every American investor, to see that there to Appalachia before it was fashionable, who are enormous opportunities out there today always believed that poor people were smart, in the areas that have been left behind by wanted to work, and had a right—a moral our economic recovery. Second, because I right—to be part of America’s future. Thank wanted to highlight the tools that have al- you, Jesse Jackson. ready been put in place, to encourage more And thank you, Sandy Weill, for the Wall people to invest in those communities: the Street Project, which attempts to marry the empowerment zones and the enterprise com- investment capacity of Wall Street with the munities which Vice President Gore has so human capacity of all those places we’ve been ably led for 6 years now; the community de- visiting. Thank you for the National Academy velopment financial institutions that we have Foundation. Thank you for being a good friend to me and to all these young people supported; the Community Reinvestment and so many others. And thank you for invit- Act, which has led to billions of dollars of ing me to this annual conference. reinvestment in our developing neighbor- This is really quite can appropriate place hoods; the education and training initiatives for me and those who have traveled with me designed to give all of our people a chance this last week on our new markets trip to not only to have good, basic skills, but to keep end our journey, reaffirming your commit- on learning for a lifetime. ment and ours to prepare all our children And third, I wanted to highlight our new for the new century. Over the past 4 days, markets initiative, a piece of legislation sim- as I have traveled across America, we have ply designed to give American investors who

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are willing to take a chance on new and ex- went on this trip. She’s trying to set up a panded businesses in distressed urban and vision fund with $250 million in private sec- rural communities access to the same kind tor capital to give venture capital to these of tax credits and loan guarantees—to lower kinds of places. If we get our way, the people the relative risk of their investment—in who invest in that fund will be eligible for America that they can get to invest in poor a 25 percent tax credit for putting that money communities from Africa to Asia to Latin into high unemployment areas, and they’ll be America to the Caribbean. I’m for those in- eligible to borrow $2 for every $1 they put vestments, but I think America’s commu- up in that fund and have it guaranteed by nities should have access to the same capital the Government so we lower the interest with the same incentives. rate. That’s the Government’s contribution; The idea behind this, obviously, is that the but somebody still has to make the invest- Government cannot do this alone, but busi- ment to put these people to work. ness cannot be expected to go it alone. When So most of the capital we’ve been talking Government provides the conditions and about these last several days has been money. tools, acts as a catalyst to bring the power We see in the Pine Ridge reservation in of the private sector to benefit all of our citi- South Dakota a remarkable grandmother, zens, and provides the investment and the providing schoolclothes for her grand- education and training of our young people, children, having to literally buy the tennis this is not only good economics, it is the right shoes her grandchildren wear to school on thing to do. We can build one America where the installment plan all summer long while nobody is left behind when we cross that the shoes are kept in layaway, so the kids bridge into a new century. And if we do, we’ll will have them. Then there were 11 people all be better off. living in a house with about 800 square feet, The CEO’s and national leaders I have another 17 in an adjoining housetrailer with traveled with, we’ve heard it every stop: about 900 square feet. We need money; ‘‘Look, we just need a chance; our kids need those people need housing. education; our adults need training; and we We also saw American Indians, that have need somebody who believes in us enough been waiting for 9 years, moving into their to give us a chance.’’ first homes. A little 5-year-old boy, 6-year- I’ll never forget the woman we met in the old boy took me by the hand and led me Mississippi Delta, who was working for a very all through his new home and showed me small business in a depressed community his sister’s room and explained why it was that had five employees. She made a very okay that she had a bigger room than he did. modest wage, and the owner of the business [Laughter] She was a teenager, and teen- just decided to close up. He said to her she agers needed things like that. [Laughter] The was the only person capable of running the pride that they felt, these people, this mother business. But nobody would give her a loan who had worked all her life and finally get- because she’d never had any money in her ting a decent home for her children to live life; she had only worked for modest hourly in. wages. So a lot of this is a money problem. I used Because there was a community investor to joke with a lot of my friends—I still say willing to take a chance on her, she got in- this—that I had about 9 or 10 rules of politics vestment capital; she bought the business. that I kept in my mind all during my career Two years later she went from 5 to 11 em- running for office, and rule number 2 was, ployees, and she has just about paid her loan when anybody stands up and tells you it’s off. There are thousands of stories like that not a money problem, they’re talking about waiting to be written in America in every somebody else’s problem, not theirs. community that is still depressed. [Laughter] So we want to encourage that. And that’s So money is a big issue here. But there’s why so much of this trip is focused on how another kind of capital that in some ways is to get financing. A remarkable business- even more fundamental, human capital— woman from New York, Marianne Spraggins, people. When Hazel stood up here and you

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clapped for her, you were clapping for the will agree to help us expand our trade with astonishing development of human capital, other countries. We can also bring popu- of what she has done with her life and the lations that are outside the work force into chance that her mother took in going to Ha- the work force. With the welfare rolls— waii, the risks and the heartache and the dif- they’re now the lowest they’ve been in 30 ficulties her family went through. It made years and there are a lot of people still on you feel good. welfare that are able-bodied, but they have And what I want to say to you today is limited skills, we could bring more people that there are people just like these young from welfare into the work force. people we’re honoring back here on every You can bring hundreds of thousands of Indian reservation, in every hill and hollow disabled people who are capable of doing of Appalachia, up and down the Mississippi more and more kinds of jobs, thanks to tech- Delta, in every inner city. And they de- nology now, into the work force. And the serve—they deserve—the chance to be what- Congress, I believe, will soon send me a bill ever they’re willing to work hard to be. And that will enable those that have high health unless we’re prepared to do that, even our care costs that are now being paid by the best efforts to bring new investment to these Government to keep that health care cov- distressed communities will be less than fully erage so private employers can afford to hire successful. them. Now, we have a better opportunity and a But by far, the biggest opportunity—by better reason to do that now than ever be- far—in keeping this economy going without fore. As I tell people, I spend a lot of time inflation is to get more investments, more in Washington—Sandy’s always saying that jobs, more new business owners, more new I’ve done a good job as a Democrat with the workers and, therefore, more new con- economy so more people can live like Repub- sumers, into the rural and urban areas that licans. [Laughter] And I’ve done my best to have not yet been blessed by this recovery. do that. That’s why every single American actually But you should know that one of the things has a vested interest in our success here. And that we seriously debate back in Washington, more and more businesses are looking for DC, a long way from Anaheim, is how can young people like those we celebrate, be- we keep this going. We already have the cause there’s a shortage of skilled workers, longest economic expansion in peacetime in even though there are people who are still our history. We have the lowest African- looking for jobs. In some job categories, a American and Hispanic unemployment rates shortage of hundreds of thousands. There- ever recorded. We have almost 19 million fore, if Americans are willing to look a few new jobs, and we have very low inflation, and exits off the beaten path, we can continue we’ve had unemployment rate below five to grow this economy and we can continue percent for 2 years. So a big question is, how to have more of the kind of stories we just much longer can this go on, and how can heard. we keep it going without having inflation Let me also say to you, if we can’t do this buildup, then having interest rates go up and now, with the strongest economy we have having the recovery stop? ever had, when it is manifestly in the self- This is not an academic issue if you’re interest of every enlightened decisionmaker about to get your first job or if you’re sitting in the country, when will we ever get around there trying to make up your mind whether to doing it? to take out a huge bank loan to expand your Let me tell you some of the things that business. You want to know if we can keep we saw on the human capital front. We this going. walked down the dusty streets on an Indian My answer is, we can keep it going if we reservation. We saw the boarded-up store- can find noninflationary ways to promote fronts in a town in the Mississippi Delta, fa- growth. Now, what are those? Well, we can mous for its role in the civil rights struggle. sell more American goods and services We saw desperate living conditions in a little around the world—why I hope the Congress hollow in Appalachia where everybody had

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a job and they still couldn’t afford a decent this magnificent project show, this is Exhibit house to live in. A that we can do it. But every place we went, nobody wanted Now, let me say on a very positive note, charity, nobody wanted a handout. What they I’m quite optimistic—that I am quite sure wanted was a hand up. That’s why this will that one answer to this in the United States work. What people want is a good private and all across the world is better dispersal sector job, the simple dignity of a paycheck, of technology. When I went to Africa, I went the ability to house and educate their chil- to these little villages where people had dren and provide health care for them. And maps—these children were in these little vil- what you know here, what these young peo- lage schools where they had maps that still ple behind me demonstrate, is that intel- showed the Soviet Union and other nations ligence and ability and drive and dreams are that haven’t existed in a long time. But if equally distributed in this country among the those kids just had one computer for the poor and the nonpoor. school and a printer, they would never have I’ve often said, things happen to people to worry about that. We could change the that derail their lives, and then they have to map of the world every day, and all those work hard to get them back on track. Things little kids would have an updated map. happen to places like that, too. I know the Right? Mississippi Delta, which includes a big part Technology will enable some of these of my own home State, the economy that areas to skip a whole generation of develop- ment if it is broadly dispersed. Secretary once sustained that area has been gone a long Daley referred to the Department of Com- time. Nobody was ever able to figure out how merce report today on technology. Let me to put a new economy in its place. But there’s tell you what it says. It confirms what you a new economy out there that could fit in already know. More and more Americans that place. than ever are connected to the Internet. It There are new economies that could fit is the fastest-growing method of human com- in the most remote villages of the Appa- munication in all of history by far. lachian Mountains. There are new economies But it also shows, this report, that there that could go into the Native American res- is a growing digital divide between those who ervations. How many data processing jobs do have access to the digital economy and the American companies ship overseas on air- Internet and those who don’t, and that the planes every night to go to poor countries divide exists along the lines of education, in- and other places? They could be done on come, region, and race. It might have pointed Indian reservations, for example. We have out, of course, that all of us parents are not got to think about that. as good as our kids. That divide’s not so seri- We all can identify with a human story. ous, but the real one is. If Hazel stands up here and tells us the story And yet, we know—I will say again—that of her family, it grips us and we pull for her. the very information technology driving this But what you need to know is, all these places new economy gives us the tools to ensure have stories like that. We got the land and that no one gets left behind. It gives us the the mineral rights away from the Indians, and tools to provide a story for these commu- we said, oh, we’ll make a deal, we’ll have nities, to literally provide a self-sustaining a nation-to-nation relationship with you, and economic infrastructure for the 21st century. we will provide for the education and health Millions of Americans now on the economic care and housing of your people; but we’ll margins can join the mainstream in the en- do a poor job of it and we’ll spend just as terprise of building our Nation. little as we can get away with. And then, we’ll A child in South Central LA, in the most say you must not really want to do any better. remote part of Indian country, can have ac- We have to write new stories for these cess to the same world of knowledge in an places. And it takes a commitment to money instant as a child in the wealthiest suburban capital and to human capital. And what Sandy school in this country. Now, just imagine if and all of you who have been involved in not simply a fraction, but all of our young

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people entered the work force, had access this country. The real measure of our success to the Internet always, and had mastered the is not whether CEO’s join the President on skills of the new information economy. a trip like this which moved the nation, but So if we want to unlock the potential of whether the same CEO’s and others will re- our workers, we have to close that gap. We’ve turn to those markets and move the lives of done what we could. We have provided the the people there. HOPE scholarship and other tax credits so So I say to you, you have to do that. The that we’ve literally opened the doors of col- real test of the success is not whether I’ve lege to all Americans. We have emphasized got a legislative idea, but whether Congress higher standards, smaller classes, more will set aside its partisan differences and put teachers. We’re connecting every American that idea into law so we can have more invest- classroom to the Internet, and I think we’ll ments in these communities. make our goal that the Vice President and Next week I will send our new markets I established here in California in 1994 of legislation to Congress. Over the next several having all the classrooms connected by the weeks we’ll announce a new national effort year 2000. to promote the business link partnerships, The $8 million in corporate commitments pairing big businesses with smaller, often dis- made today by this group are so very impor- advantaged companies, an idea the Vice tant, as are the information technology acad- President has so strongly championed. emies to which Sandy referred earlier. Sandy And this fall we’re going to take another has said often that today’s students are to- tour. I am going to start in Newark to chal- morrow’s employees, today’s students are to- lenge the owners of professional sports teams morrow’s economy. They’re not just some- and professional athletes to follow the exam- body else’s employees they are tomorrow’s ple set by the owners of the New Jersey economy. Nets—Ray Chambers and Lew Katz—who So, bringing these skills to distressed fami- set up the ownership of the Nets in a way lies in distressed communities can have more that 35 percent of the profits of the franchise to do with our ability to restructure the econ- are reinvested in downtown Newark, to give omy in these areas than perhaps anything the future to the people there. else. I also want to thank AT&T, and I think, You might know that the Nets have now— Dan Hesse, the CEO of AT&T Wireless, is those gentlemen have joined in a joint part- here for committing more than $1.4 million nership with the New York Yankees, they to increase access to the tools of the high- now have a big partnership, and they have tech economy. dedicated a significant percentage of the I want to thank America Online, George profits of the joint venture to reinvest in Vradenburg of AOL is here, for providing inner city New York, in the Bronx, and in more than $1 million in grants to help narrow Newark. the digital divide. I want to thank Oxygen So I’m going to go up there. I’m going Media on the cable network it will launch to highlight what they’re doing. I’m going to next year. They will offer high-tech training see what we can do to help. And we’re going on TV, so more embarrassed adults can learn to make another round here to show people what their kids already know. [Laughter] that there are things that we can do together This is the kind of thing we have to do. that are both morally right and good busi- If we have money capital and human capital, ness. we can bring hope to the places that have Often on this trip Reverend Jackson has been left behind. referred to the fact that Dr. Martin Luther The last thing I want to say to you is this: King, just before he was killed, thought that This tour, this last four days that we have he had done about all he could do to get all spent together has been a significant step the legal changes necessary to get rid of the toward opening America’s new markets. But stain of racial segregation; and that the great it can’t be the end of the journey. It has to disadvantages and discrimination still alive in be, instead, the opening salvo of a battle to America could only be eliminated if there build a real economy in every community in were a new alliance of people across racial

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lines to create genuine economic opportunity my old friend Jack Lewin for, as usual, mak- for all Americans. ing the case. We’re used to being in fights It’s hard to believe to somebody like me, where the evidence is overcome by political anyway, at my age, that it has now been more power. [Laughter] But we’re determined to than 30 years since Dr. King was killed and reverse it in this case. his dream was put on hold. One of the lesser I want to thank Congresswoman Juanita known passages in his famous speech at the Millender-McDonald; my friends Zev Lincoln Memorial in August of 1963 involved Yaroslavsky and Yvonne Burke and the may- language in which he challenged America, ors and other local officials who are here. and I quote, ‘‘to refuse to believe that there I thank the leaders of the health care groups are insufficient funds in the great vaults of that are here, both consumers and providers. opportunity in this Nation.’’ Thank you, Reverend Jackson, for coming. Well, my fellow Americans, today those We’re glad to see you this morning. vaults of opportunity are more full than they I have a couple of things I want to say have ever been in the entire history of this about health care and about how this Pa- country. And we have more evidence than tients’ Bill of Rights issue fits into our larger we have ever had that when children like responsibilities to deal with the health of the those that we talked about today, and when American people. I have just finished a trip young people like those we celebrate today— across our country, from Appalachia to the Hazel, and her peers behind me—do well, Mississippi Delta to the Pine Ridge Indian we are all strengthened; that there is a funda- Reservation to inner-city neighborhoods in mental sense in which our futures are bound East St. Louis, Illinois, south Phoenix, and up together, from Appalachia to the Mis- Los Angeles. The purpose of this was to shine sissippi Delta to the Native American res- ervations to the inner cities to the wealthiest a spotlight on the opportunity which exists corners of our land. in areas that our prosperity has completely All our kids need a chance to live their passed by. dreams. And the American Dream needs for It was a remarkable 4 days, and I came all Americans to be blessed by the oppor- in contact with all the health issues that you tunity that has given so much to us. would be concerned about in the process of Thank you for what you do to achieve that pushing an economic agenda. For one thing, goal, and God bless you. when we left Washington and arrived in Ap- palachia, and arrived in the Mississippi Delta, NOTE: The President spoke at 3 p.m. in the Pacific and arrived in East St. Louis, and arrived in Ballroom at the Anaheim Hilton and Towers Phoenix, in all those places it was 100 de- Hotel. In his remarks, he referred to award winner grees. [Laughter] It was cool in Dakota when Hazel del Rosario; civil rights leader Jesse Jackson; Sanford I. Weill, cochair and co-chief executive we got there at night, but the next day it officer, Citigroup, and founder and chairman of was a mere 94. the board, National Academy Foundation; And I’m very worried, I must say—I want Marianne Spraggins, senior managing director, to say this today—I’ve been very concerned Smith Whiley and Co.; and George Vradenburg because a lot of poor people depend upon III, senior vice president for global and strategic the LIHEAP program—the Low Income policy, America Online, Inc. (AOL). A portion of Health Assistance Program, to pay for air- these remarks could not be verified because the conditioning or get fans in the summertime. tape was incomplete. And I have, today, directed the appropriate people in our Federal Government to expe- Remarks on the Patients’ Bill of dite the analysis we’re required to do about Rights in Torrance, California the effects of the recent heat wave on the July 9, 1999 need for emergency assistance under this program. We could lose a lot of people who Thank you very much. Well, good morn- won’t even get to the emergency room if we ing, and I want to thank Tecla Mickoseff for don’t do it. So I do want you to know that welcoming us here to Harbor-UCLA. Thank I hope the message will go across the country you, Ethel, for your powerful statement out to the places I visited and the other places of your personal experience. I want to thank that we know this is going to be a problem.

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When we went on this tour, we saw an So, as has already been pointed out, I awful lot of problems, and we saw a lot of asked the Congress a year and a half ago to promise—enough promise to convince us all pass a strong, enforceable Patients’ Bill of that we actually can succeed in building a Rights, with all the things you’ve heard bridge to the 21st century that all Americans about—the right to see a specialist, the right can walk across. When we give economic op- to emergency room care at the nearest emer- portunity to all, we’re helping to build that gency room, the right not to have to change bridge. When we give all of our kids a world- health care providers in the middle of treat- class education, we’re helping to build that ment, the right to enforce accountability for bridge. When we’re dealing with health care harmful decisions. And I have used my au- challenges, we’re helping to build that thority as President, as you said, not only to bridge. cover by Executive order those people on Jack mentioned the Medicare proposal Medicare with the protections of the Pa- that I have made to stabilize the Medicare tients’ Bill of Rights, but also those people Trust Fund until 2027, provide a prescription on Medicaid, those people served by the Vet- drug benefit that we can afford, and provide erans’ Administration, and the people in the much more preventive services, which I Federal health insurance plan, the Federal think are very, very important. There’s a fun- employees and their families. damental difference. And I want to just tell you that we actually Now, how does the Patients’ Bill of Rights now have some experience with the Patients’ fit into all of this? I feel in a way that I have Bill of Rights. You know, the HMO’s say, a special right, if you will, to advocate for well, this all sounds very good, but we can’t this bill because I have defended the role afford it, and if you—and they always try to of managed care in our health care system make you think only of yourself, your healthy for years. When I became President, health self—if you, your healthy self—[laughter]— costs had been going up at three times the who never gets sick, but has to pay health rate of inflation for many years. And all of insurance, give these Patients’ Bill of Rights us knew it was totally unsustainable, that to them, all those sick people, you, your eventually, if it kept going up at three times healthy self, will have to pay more for health the rate of inflation, we’d be spending all our insurance, and oh, how terrible it will be. money on health care. That’s their argument, right? We all knew that was completely Well, we actually have done this now, and unsustainable, and that there was nothing we have evidence—and sometimes evidence wrong with managing a system properly so overcomes interest groups in Washington, so that you could, at the lowest possible cost, let’s talk about the evidence. Our evidence achieve the objective, which was the highest is that when we put the Patients’ Bill of possible quality of health care. And, yes, at Rights into the Federal employees’ health the margins there will always be tough deci- plan, it raised the cost of health insurance— sions, but fundamentally, no one who both by less than a dollar a month. believes in the American health care system Now, I’m going to go over this one more and the professionals who provide that health time. You’ve already heard—I’m going to go care, and who believes in proper manage- over it one more time, and I’m going to ask ment, believes you should sacrifice basic every American if he or she wouldn’t be will- quality of care to the decision made by an ing to pay something in that range on the accountant to make the bottom line of an off-chance that their healthy self might not HMO bigger. always be that way, and out of a genuine con- The purpose of managed care is to en- cern for our fellow citizens and an under- hance quality of care by making it as afford- standing that the wealth and power and able as possible, not to undermine quality of strength and quality of life of our country care by making the people who provide man- depends in no small measure on the contin- aged care as profitable as possible. And it’s ued advances in the health of all Americans. very important. There’s a fundamental dif- And, yes, some States have done some ference. things in this area. But until Congress acts,

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there will be more than 100 million Ameri- clout. But let’s forget about the politics and cans who won’t have these full protections. look at the facts. I want to run through this— I can only give it to 85 million by Executive look at this chart over here. I wish every order. So next week, at long last, the Senate American could just have this chart at home. is going to take this up. I’ll say more about If I had the ability through the Internet to that in a moment, but thank goodness, the send this to every American, I would do it. Senate finally is going to take this up. Our plan says, if you need to see a spe- Last year—all year the leaders of the Sen- cialist, you can’t be denied the right to see ate kept us from bringing the bill up. And a specialist. Their plan doesn’t give you that there’s a good reason why they did—they’re right. Our plan says, if you get hit driving not for it, but they know they can’t afford out of this event today, on a hot Saturday to be caught being against it. We have 200— morning in Los Angeles, you ought to be able 200-plus medical and consumer groups are to go to the nearest emergency room, not for the Patients’ Bill of Rights. The American show up there and be told you’ve got to drive Medical Association has allies it has never 25 miles to one that your plans covers. This had before. [Laughter] This is a very big tent. is a real issue, as you know. And there is only one group on the other Our plans says—and I was so glad to hear side, the health insurers. It’s 200 to one, but you mention this—that if you’re being treat- the one is a big one, and so far has had ed with chemotherapy or if you’re six months enough support in the majority party in the pregnant and your employer changes pro- House and the Senate to keep this from com- viders, you should be able to stay with the ing up. physicians that are treating you until the But if you go out in the country, I have treatment is completed. Hugely important said this over and over and over again, if you issue that most Americans are not aware of. go out in the country, this is not a partisan Our plan assures HMO accountants don’t issue, because Republicans get sick just like make arbitrary medical decisions. Now, let Democrats. Even stubborn independents me just say, I’ve listened to a lot of stories sometimes get sick. [Laughter] And when about this. I’ve done a lot of research on this. you walk into the emergency room—I would A lot of times the HMO decision-making really like to know whether she’s got a form tree—you finally get high enough to get a she fills out in the emergency room that has doctor who makes the right decision, and it’s a check for political party. [Laughter] too late. Now, before I give you this medicine, are And I’ve said this over and over again— you a conservative or a liberal? [Laughter] I’m actually sympathetic with a lot of people You know, we’re laughing about this, but it at the first line of decision-making in the makes a very important point. This is not a HMO. Why? They’re not doctors, and partisan issue, this is not even a philosophical they’re never going to get in trouble with the issue, not anywhere in the wide world but company for saying no. Right? They know— Washington, DC. I’m sympathetic with them. A lot of them, If you explained all the options to all the they’re making a modest income, they’re people in all the communities of this country, looking forward to their Christmas bonus, I promise you over 70 percent of Repub- they want to please their employer like we licans, Democrats, and independents—you all do. You’re my employer—I want to please know, when you got above those strato- you. [Laughter] We’re all like that. And these spheric numbers, maybe there would be young people who are working in these com- some partisan difference—but you’d have panies, they know they are not going to get over 70 percent of all groups for this. How in trouble for saying no, because they know can it be—how can it be that for over a year if they say no, the decision can always be the American people have been deprived of kicked upstairs—and maybe it’s three levels even a full debate on this in the United States upstairs, but eventually, somebody who actu- Senate? ally understands this is going to make a deci- Well, as I learned and Jack learned back sion. And if they say yes, then they won’t in 1993 and ’94, these folks have a lot of get in trouble for having said no; but, ah,

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if they say yes, and somebody above them I saw today an amusing article in the paper says, ‘‘You should have said no,’’ they can get which said that the leaders of the majority in a world of trouble. party had decided that instead of bringing So we try to fix that here and change the up their bill and having to deal with 20 of incentive so that there is no institutional bias our amendments, which would put people— to deny quality care. Should the health plans force them to put their Members on record be held accountable? I think so. The Framers being against these things, they would bring of the Constitution understand that a right up our bill and just beat it, in the hope that without a remedy is not a right at all. And then there would be no specific record of should they cover all health plans? Abso- accountability. lutely. The other bill leaves out 100 million I thought to myself, what kind of a weird folks. world am I living in? If this was just about So that’s what this is about. The ‘‘yeses’’ something we had an emotional opinion and the ‘‘noes.’’ It simple evidence. It’s about about and we were on different sides, I how people live. And, yes, the health insur- would think that would be a clever thing to ance association may have some of its profit do and that’s just politics. This is not whether margin squeezed. And, yes, they may have you’ve got an emotional thing, this is about to have modest increases, like we did—the whether some people live and some people Federal employees health plan—I’ll tell you die. This is about whether people get well, it’s less than a buck a month policy. That’s or they don’t. This is about whether people feel at least comfort when they’re dealing what our experience is. But isn’t it worth it with the challenges of life, or they’re just to allow the system to work? To keep the knotted in anxiety all the time. benefits of managed care without having to This is about whether all these doctors, shoulder these enormous burdens, these these nurses, these health care professionals heartbreaking burdens. wake up every day happy to go to work be- I don’t know how many people I have cause they think they’re going to be able to seen—I’ve seen nurses who work for doctors do their job, or they’re waiting for the other in their offices who have to make the calls shoe to fall every single day because some- to the HMO’s to get told no, break down body is trying to strangle their ability to make and cry, telling me stories of people that they decent decisions. This is, in other words, not couldn’t take care of. You know, these are a typical political decision. This is about life not just isolated anecdotes. This is a system- and the quality of life and the fundamental atic problem in American health care. And decency of our society. once we fix it, all the people will be happy— We should err on the side of humanity. the HMO’s will do just fine and they’ll be We should err on the side of quality health happy we did. And people will wonder what care. We have evidence now from our own in the wide world we were doing all those experience that we can well afford to do this. years not providing these basic protections. And this is an idea whose time has long since Think of how you’d feel if you were a doc- come. tor. You’d spend all those years going to med- So—and there are Members of Congress ical school, all those years in residency, you in the Republican Party, as well as the go all those years without any sleep, and Democratic Party, who support this, who just you’re finally out there giving health care, want a chance to vote for it and bring the and all of a sudden you’re told, here’s a strait- benefits of it to the American people. jacket we’d like you to wear to work every You know, it’s like anything else—you can day and still figure out how to make these argue against anything on the grounds that people well. I mean, this is a big, big, big it’s not perfect. Well, if we never did anything issue. And it should not be played out in a because it wasn’t perfect, we’d never do any- partisan, political, or special interest atmos- thing. And America wouldn’t be here cele- phere. brating the 21st century. We wouldn’t be Shouldn’t we err on the side of health? around after 223 years. The Constitution What are we afraid of? [Applause] wasn’t perfect; it had to be amended.

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So it is not an argument to vote against Vajpayee of India concerning the situation this bill that it might not be perfect, that in Kashmir. there might be some unforeseen con- sequences that we might have to fix—we take July 4 our cars to mechanics to fix things that aren’t perfect, but we don’t stop buying cars and In the evening, the President had a tele- go back to walking around. [Laughter] I phone conversation with Prime Minister Atal mean, none of these arguments make any Behari Vajpayee of India concerning the situ- sense at all. ation in Kashmir. We have to put people and principle and Later, the President made brief remarks evidence ahead of raw political influence. on the South Lawn before the fireworks pres- Democracy has to work. entation. So, I thank you for being here. Remember, we’re all preaching to the saved in this room July 5 today. Reach out to other Members of Con- gress. Send a note or an E-mail today or In the morning, the President traveled to Monday morning to every House Member Hazard, KY. While en route aboard Air that represents anywhere around here, and Force One, he had a telephone conversation both your Senators are for this bill—that’s with Northern Ireland Ulster Unionist Party great. Send it to Senators from other States. leader David Trimble concerning the North- Give people a chance to do the right thing. ern Ireland peace process. Tell them what’s at stake. In the afternoon, the President toured the If people will listen to their hearts and Whispering Pines neighborhood, where he their heads, we’ll prevail next week. talked with residents. Later, the President Thank you, and God bless you. toured the Mid-South Electric Co. In the evening, the President traveled to NOTE: The President spoke at 10:54 a.m. in the Parlow Auditorium at the Harbor-UCLA Medical Memphis, TN. Center. In his remarks, he referred to Tecla Mickoseff, administrator, Harbor-UCLA Medical July 6 Center; Ethel Edmond, registered nurse, King Drew Medical Center; Jack Lewin, executive vice In the morning, the President traveled to president and chief executive officer, California Clarksdale, MS, where he toured local busi- Medical Association; Los Angeles County super- nesses. visors Yvonne Brathwaite Burke, 2d District, and In the afternoon, the President traveled to Zev Yaroslavsky, 3d District; and civil rights leader East St. Louis, IL, where he visited a Jesse Jackson. Walgreens drugstore. In the evening, the President traveled to Rapid City, SD. Later, he toured Mount Rushmore and the Crazy Horse Memorial. Digest of Other The President announced the nomination White House Announcements of Q. Todd Dickinson to be Assistant Sec- retary and Commissioner of Patents and The following list includes the President’s public Trademarks at the Department of Com- schedule and other items of general interest an- merce. nounced by the Office of the Press Secretary and The President announced his intention to not included elsewhere in this issue. appoint George Becker and to reappoint Marc S. Tucker as members of the National July 3 Skill Standards Board. The President had separate telephone con- The President announced his intention to versations with Prime Minister Nawaz Sharif appoint Amy W. Meyer as a member of the of Pakistan and Prime Minister Atal Behari Board of Directors of the Presidio Trust.

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July 7 Checklist of White House Press In the morning, the President traveled to Releases Pine Ridge, SD, where he toured the new housing complex at the Pine Ridge Indian Reservation. In the afternoon, the President traveled to Phoenix, AZ, where he toured Chicanos Por The following list contains releases of the Office La Causa, Inc., a successful local business, of the Press Secretary that are neither printed as and the La Canasta Mexican Food Products items nor covered by entries in the Digest of Other White House Announcements. factory. In the evening, the President traveled to Los Angeles, CA. Released July 3 The White House announced that the President will meet with Prime Minister Statement by the Press Secretary on the Ehud Barak of Israel on July 15. President’s telephone conversations with The White House announced that the Prime Minister Nawaz Sharif of Pakistan and President will travel to Des Moines, IA, on Prime Minister Atal Behari Vajpayee of India July 16. concerning the situation in Kashmir July 8 In the morning, the President toured the Released July 7 Transportation Academy Youth Training Fa- Statement by the Press Secretary: Job Train- cility at Alain Leroy Locke High School. ing Program for Ireland In the afternoon, the President traveled to Statement by the Press Secretary: President Anaheim, CA. Clinton Provides Import Relief and Adjust- July 9 ment Assistance for U.S. Lamb Industry In the morning, the President traveled to Statement by the Press Secretary on the Torrance, CA, and in the afternoon, he re- President’s upcoming travel to Des Moines, turned to Los Angeles. IA The President announced his intention to nominate Tibor P. Nagy, Jr., to be Ambas- Statement by the Press Secretary on the sador to Ethiopia. President’s upcoming meeting with Prime The President announced his intention to Minister Ehud Barak of Israel appoint William K. Reilly as a member of the Board of Directors of the Presidio Trust.

Acts Approved by the President Nominations Submitted to the Senate NOTE: No acts approved by the President were received by the Office of the Federal Register NOTE: No nominations were submitted to the during the period covered by this issue. Senate during the period covered by this issue.

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